GNDE - GRINDROD LIMITED - Unaudited condensed consolidated interim results for the six months ended 30 June 2020

27/08/2020 08:00:00

Unaudited condensed consolidated interim results for the six months ended 30 June 2020 GRINDROD LIMITED (Incorporated in the Republic of South Africa) (Registration number 1966/009846/06) Share code: GND and GNDP ISIN: ZAE000072328 and ZAE 000071106 ("Grindrod" or "the Company") Unaudited condensed consolidated interim results for the six months ended 30 June 2020 COMMENTARY Grindrod's performance was resilient in the first half of the year to 30 June 2020 with trading profit up on the first half of the prior year. Cash generated from operations is R507.4 million, up 40% on the prior year. Additional banking facilities advanced of R450.0 million remain available. The balance sheet continues to be strong with net debt to equity of 5%. Port and Terminals reported good volumes through the Maputo Port and Matola Terminal. The Seafreight business and its landside container operation achieved earnings growth underpinned by its increased port activities. Grindrod's presence in the northern Mozambique gas region gained momentum with four barges now on charter. Continued effort in aligning all parties on the North-South corridor remained a focus with deployment of locomotives and wagons now also on the Dar es Salaam corridor. Grindrod Bank continues to operate cautiously during this time ensuring that its liquidity cover and capital adequacy ratios remain above minimum regulatory requirements. Whilst the core business remained buoyant, COVID-19 specific actions resulted in once off adjustments. These included dividend withholdings tax of R31.6 million on repatriation of undistributed profits of US$27.9 million from Mozambique and a R90.0 million mark to market adjustment on the Grindrod Shipping shares held. The discontinued businesses comprise the Marine Fuel, Agricultural Logistics businesses and the private equity portfolio. COVID-19 impacted valuations of the private equity portfolio, resulting in impairments and fair value adjustments of R270.2 million. TOTAL OPERATIONS Results presented below include continuing and discontinued operations Unaudited Unaudited 30 June 2019 30 June 2020 R000 % R000 Restated* change Revenue 1 816 095 1 857 141 (2) Trading profit 464 895 414 520 12 Weighted average number of shares^ 677 532 680 483 Basic loss per share (cents) (44.4) (75.3) 41 Headline loss per share (cents) (34.2) (17.8) (92) Net asset value per share 1 234 1 175 5 * Restated for IFRS 10 Consolidated Financial Statements. ^ Weighted average number of shares includes 64.0 million shares treated as treasury shares following consolidation of the BBBEE consortium since 2018. DECLARATION OF FINAL DIVIDEND Ordinary dividend Notice is hereby given of the decision not to declare an interim dividend for the six months ended 30 June 2020 as a prudent and precautionary measure to manage the impact of the COVID-19 pandemic (2019 H1: 5.0 cents). At the date of this announcement, there were 762 553 314 issued ordinary shares. Preference dividend Notice is hereby given that a gross interim dividend of 381.0 cents (2019 H1: 447.0 cents) per cumulative, non-redeemable, non-participating and non-convertible preference share has been declared out of income reserves for the six-month period ended 30 June 2020, payable to preference shareholders in accordance with the timetable below. At the date of this announcement, there were 7 400 000 cumulative, non-redeemable, non-participating and non-convertible preference shares in issue. The interim net preference dividend is 304.8 cents per share for preference shareholders who are not exempt from dividends tax. With respect to the preference dividend, in terms of the dividends tax effective since 22 February 2017, the following additional information is disclosed: The local dividends tax rate is 20% and Grindrod Limited's tax reference number is 9435/490/71/0. Preference dividend timetable Declaration and finalisation date Thursday, 27 August 2020 Last date to trade cum-dividend Monday, 21 September 2020 Securities start trading ex-dividend Tuesday, 22 September 2020 Record date Friday, 25 September 2020 Payment date Monday, 28 September 2020 No dematerialisation or rematerialisation of shares will be allowed for the period Tuesday, 22 September 2020 to Friday, 25 September 2020, both days inclusive. The dividend is declared in the currency of the Republic of South Africa. Directors' statement This short-form announcement is the responsibility of the directors and is only a summary of the information of the full announcement and does not contain full or complete details. The full announcement is available on the JSE's website (https://senspdf.jse.co.za/documents/2020/jse/isse/GNDE/ie2020.pdf), and for inspection at no charge, Monday to Friday, during office hours at the company's registered office, or at the office of the Sponsor, or from the company secretary by emailing Vicky.Commaille@grindrod.com. Any investment decision by investors and/or shareholders should be made having considered the full announcement as a whole. By order of the board VB Commaille Group company secretary 26 August 2020 Registered office and business address Grindrod Mews, 106 Margaret Mncadi Avenue, Durban, 4001 Sponsor Nedbank CIB 3rd Floor, Rivonia Campus, 135 Rivonia Campus, Sandown, Sandton, 2196 27 August 2020 Date: 27-08-2020 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 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