Basil Read Holdings Limited
(Incorporated in the Republic of South Africa) (Registration Number 1984/007758/06)
Share Code: BSR ISIN: ZAE 000029781 ("Basil Read" or the "company")
TRADING UPDATE
Shareholders are referred to the trading update released by Basil Read dated
26 November 2014, advising that the company expected earnings per share and headline earnings per share for the year ending 31 December 2014 to be a minimum of 20% lower compared to the previously reported corresponding period.
The company is finalising its results for the year ended 31 December 2014, and is required to, in terms of paragraph 3.4(b) of the Listings Requirements of JSE Limited ("JSE"), once reasonable certainty is obtained, to provide the
guidance as set out therein. Consequently shareholders are advised that the following guidance replaces the minimum percentage difference quoted in the previous trading update.
Basil Read expects its earnings per share for the year ended 31 December
2014 to be a loss of between 588.00 and 635.00 cents per share or between
349% and 369% lower compared to the 235.97 cents earnings per share for the previously reported corresponding period. The prior year earnings per share includes the profit on disposal of TWP in the amount of R183 million.
Shareholders are further advised that Basil Read expects its headline earnings per share for the year ended 31 December 2014 to be a loss of between 357.00 and 374.00 cents per share or between 510% and 530% compared to the 86.99 cents headline earnings per share for the previously reported corresponding period.
The company's operating performance for the financial year ended 31
December 2014, has been adversely impacted by losses relating to a number of contracts in the construction and engineering divisions. In the process of finalising the company's results for the year ended 31 December 2014, additional expected losses relating to these contracts have been raised in accordance with the provisions of IAS 11 Construction Contracts. The company has submitted a number of claims related to these contracts, which are currently being assessed or are in discussion, and although the company is confident of a positive outcome, the possibility of gains through the claims process, and/or the possible impact of delay damages have not been recognised in terms of the prevailing accounting standards.
Included in the overall projected losses, are the following once off adjustments:
• a non-recurring non-cash impairment of goodwill for an amount of R304 million, of which R82 million relates to non-core assets; and
• a non-recurring write down of development land relating to the company's investment in Rolling Hills Leisure Estate in Mpumalanga for
an amount of R80.6 million.
Decisive action has been taken by the new management team to reduce overheads and address non-core assets within the company, with a view to improving the company's performance for the ensuing year.
The financial information on which this trading statement is based has not been reviewed or reported on by Basil Read's auditors.
Date of financial results and presentation:
The company's annual results for the year ending 31 December 2014 will be published on the Stock Exchange News Service of the JSE ("SENS") prior to opening of market, on Friday, 27 March 2015 and an investor presentation will be hosted in Johannesburg only at 13:00 (SA time) on the same day. The company will provide the following investor services on Friday 27 March 2015 at 13:00 (SA time):
1. Live call access
Live Call access numbers for participants
South Africa: 0 800 200 648
Australia: 1 800 350 100
UK: 0808 162 4061
2. Live webcast
A live webcast will also be available on www.basilread.co.zaby clicking on the full year results tab on the home screen.
Johannesburg
20 March 2015
JSE Sponsor
Grindrod Bank Limited

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