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GNDE - GRINDROD LIMITED - Trading Statement

17/08/2016 16:11:00

GND GNDP 201608170040A
Trading Statement

Grindrod Limited
(Incorporated in the Republic of South Africa)
(Registration number 1966/009846/06)
Share code: GND & GNDP
ISIN: ZAE000072328 & ZAE 000071106
(“Grindrod” or “the Company”)



TRADING STATEMENT


In accordance with paragraph 3.4(b) of the Listings Requirements of the JSE Limited, a company is
required to publish a trading statement as soon as it becomes aware, with a reasonable degree of
certainty, that the financial results for the next period to be reported on are likely to vary by more
than 20% from the previous corresponding period.


Shareholders are referred to the trading statement issued on 27 May 2016 where shareholders were
advised that earnings per share and headline earnings per share for the six months ending 30 June
2016 were expected to be negative primarily as a result of the exceptionally weak dry-bulk shipping
rates during the first quarter.


Continued strong performances in the tanker and ship operating businesses mitigated the impact of
the weak trading in the dry-bulk shipping business. The dry-bulk shipping market has recovered from
the historic lows in the first quarter with rates now well in excess of operating costs. The Freight
Service businesses were also impacted by the weak commodity market in the first half. A
competitively priced logistics chain and improved commodity prices have resulted in significant
contracted volume for the second half of the year. Financial Services again performed well.


The Board has reviewed the group's strategy and decided to sell the locomotive assembly business.
Due to the continued depressed state of the market, it has been necessary to raise an impairment
of R675 million in the rail businesses. The impairment includes R379 million in goodwill and
intangible that arose on the BEE transaction concluded in 2014.


Shareholders are advised that the headline loss for the six month period ended 30 June 2016 is
expected to be between R340 million and R400 million (30 June 2015: Headline earnings R327.9
million) and a loss for the six month period of between R1 090 million and R1 150 million (30 June
2015: Earnings R303.2 million).
Grindrod expects the headline loss for the six month's ended 30 June 2016 to be between 46 and
54 cents per share (30 June 2015: Headline earnings 43.5 cents per share) and a loss per share of
between 146 and 154 cents per share (30 June 2015: Earnings per share 40.2 cents per share).


The company's net asset value is approximately R22.28 per share (30 June 2015: R23.16).


The company generated cash flows of R216.7 million in the half year and has a strong balance sheet
with gearing of four percent.


The information contained in this trading statement has not been reviewed nor reported on by the
company's external auditors.


Grindrod will release its results for the six month period to shareholders on 25 August 2016 and will
be holding an investor presentation in Johannesburg on that day.


By order of the board
17 August 2016
Sponsor: Grindrod Bank Limited

Date: 17/08/2016 04:11:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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