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Phumelela is currently finalising its results for the financial year ended 31 July 2015. The directors anticipate that earnings per share (ôEPSö) for the year ended 31 July 2015 will decrease by between 25% and 30%. In cents per share, EPS is expected to decrease from last yearÆs 146.1 cents to between 109.6 and 102,3 cents per share. Furthermore, the directors anticipate that headline earnings per share (ôHEPSö) for the year ended 31 July 2015 is expected to decrease by between 10% and 15%. In cents per share, HEPS is expected to decrease from last yearÆs 132.1 cents to between 118.9 and 112.3 cents per share.
The decline in EPS is due to the Group impairing the 26% investment in Betting World Nigeria (ôBWNö) and incurring a mark to market loss on its investment in Automatic Systems Ltd. (Mauritius) (ôASLö) as a result of the share price of ASL declining. The mark to market loss on ASL is not adjusted for HEPS calculation purposes and therefore included in HEPS. As reported on as a subsequent event in the interim results, the GroupÆs 26% interest in BWN was incurring losses and the company approached the controlling shareholders for additional funding. The controlling shareholders in BWN were not prepared to provide their proportionate share of the funding and accordingly BWN ceased trading on 13 March 2015. Therefore, the groupÆs exposure to BWN, comprising investment in and monies owed by, has been impaired.
As reported on in the first half, legal costs to combat abuse of intellectual property by certain bookmakers and related matters continued to be incurred in the second half and further affected EPS. Shareholders are also advised that headline earnings and HEPS from continuing operations on an adjusted basis, excluding the mark to market loss on ASL and the abnormally high legal costs, is expected to increase by between 5% and 10%. In cents per share, HEPS on an adjusted basis is expected to increase from last yearÆs 131.7 cents to between 138.3 and 144.9 cents per share
PhumelelaÆs financial results for the year ended 31 July 2015 are scheduled to be released on SENS on Friday 2 October 2015.
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