PHUMELELA STOCK EXCHANGE NOTICE

JSE statement from Phumelela that Annual Results only out end of November.

Likely to show loss in the region of R 110million.

Phumelela - trading statement & cautionary renewal
21 October 2019 17:02
Further to the voluntary trading update and trading statement released on SENS on 12 July 2019, shareholders are advised that the Board is now reasonably certain that the Company will make a basic loss and a headline loss for the year, as follows:
a basic loss is expected of between R80 million and R100 million, compared with a basic profit of R155.1 million in the prior year;
a basic loss per share is expected of between 80 cents and 100 cents, compared with a basic profit of 153.78 cents in the prior year;
a headline loss is expected of between R90 million and R100 million, compared with a headline profit of R155.6 million in the prior year; and
a headline loss per share is expected of between 90 cents and 100 cents, compared with a headline profit of 154.23 cents in the prior year, which equates to a decrease of between 158% and 165%

Included within the basic loss and headline loss are the following material items which collectively amount to R110 million:
R30 million in restructuring costs;
R32 million for a franchise provision in the North West province;
R26 million in lost income for four months of the financial year due to the withholding of the Gauteng betting levy, as referenced in previous SENS announcements;
R12 million annual cost due to the increase in VAT to 15% in April 2018, which is an ongoing reduction in income as there is no relief on the take-out ratio after provincial taxes and levies; and
R10 million cost for the social responsibility development programme.

The estimated financial information contained in this announcement has not been audited, reviewed or reported upon by the Group's external auditors.

Notice of postponement of release of annual results for the twelve months ended 31 July 2019
Shareholders are advised that the Company is in the process of finalising results for the 12 months ended 31 July 2019 which is taking longer than anticipated. As a result, it is now expected that the audited results will be released on SENS on or before 29 November 2019.

Renewal of cautionary announcement
Further to the SENS announcement dated 12 September 2019, the Company remains under cautionary as engagements with the Gauteng Member of the Executive Council responsible for Economic Development, Environment, Agriculture and Rural Development ("the MEC") and the Gauteng Gambling Board are still in progress.

Shareholders are advised to continue to exercise caution when dealing in the Company's securities.


Click here for original article www.sharedata.co.za/sens.asp?id=345819

110 Million is a lot of money.

Take away 28 Million due to the 3% and it leaves you 82 Million worth of incompetence.

Reading the SENS announcement theres nothing about reckless trading and huge losses at Bettingworld whilst Rob Scott blundered about. There's also no mention of the huge losses due to the Futsal debacle. There's also no mention of the performance of Supabets. The word on the street is that the purchase price paid was hugely elevated. I wonder who profited out of that?

This junk share should be trading at below 50 cents. The tight holding is its saving grace, however the smart money is on how long this can continue for - 2 postponements of results equates to one thing only, delaying the inevitable

Yep they never once listened to anyone’s input or suggestions for now 20 years. They never saved for a rainy day. Looking at that trading notice unless they restructure immediately with owners and trainers input or they get a competitions board approved bail out that’s over and where does that then leave horse racing in SA?

It’s very annoying because this was easily avoided.. we all face a difficult economy the good managers predict and have the foresight to get through times like this with past performances.I suppose they are in the gambling business so gambling on a bailout happening is not out of place I suppose?

Well who agreed to take the CPT stakes from R50 million to R90 million and what has the return been? That is R120 million over 3 years without any return.....

Tigershark wrote: Well who agreed to take the CPT stakes from R50 million to R90 million and what has the return been? That is R120 million over 3 years without any return.....

Markus and Chris, and ratified by the Competitions Commission.

So the RA and JHB owners played no role in increasing the stakes in CPT by 80% and effectively wasting R120 million over the last 3 years with no return or measurable criteria in place?

Surely the idea of establishing a sand & grass track in Bloemfontein with the money would have made more sense. Over a period of time they could have moved the Kimberly operation to more viable destination with the same R120 million...

Over the Air wrote: 110 Million is a lot of money.

Take away 28 Million due to the 3% and it leaves you 82 Million worth of incompetence.

Reading the SENS announcement theres nothing about reckless trading and huge losses at Bettingworld whilst Rob Scott blundered about. There's also no mention of the huge losses due to the Futsal debacle. There's also no mention of the performance of Supabets. The word on the street is that the purchase price paid was hugely elevated. I wonder who profited out of that?

This junk share should be trading at below 50 cents. The tight holding is its saving grace, however the smart money is on how long this can continue for - 2 postponements of results equates to one thing only, delaying the inevitable

You are being kind. This is not R110 Bar..... it is a turnaround of R265 Bar. Absolutely shocking incompetence

Tigershark wrote: Well who agreed to take the CPT stakes from R50 million to R90 million and what has the return been? That is R120 million over 3 years without any return.....

Well maybe they should then shut down Cape Racing if they making losses there is the logical action?

Tigershark wrote: So the RA and JHB owners played no role in increasing the stakes in CPT by 80% and effectively wasting R120 million over the last 3 years with no return or measurable criteria in place?

Surely the idea of establishing a sand & grass track in Bloemfontein with the money would have made more sense. Over a period of time they could have moved the Kimberly operation to more viable destination with the same R120 million...

Tiger there is no fluke that Steinhoff moved its HQ to Stellenbosch during this time period. You see baas Markus wanted to show all the old money that he was now the biggest breker in Stellies. Part of the deal in getting Kenilworth racing was a guaranteed minimum 26% of the Phumelela stakes pot into perpetuity regardless of the WC performance in regards to tote turnover. This 26% was and remains way above what they contribute to the stakes pot. So to answer your question, Gauteng and Pe owners pay by having to race for less stakes than what they are entitled to to subsidise the WC. So they played a massive role, albeit without the majority of them realising the implication of the deal on their stake money raced for.

Its all there if you bother to do some homework.

You're welcome

Over the Air wrote:

Tigershark wrote: So the RA and JHB owners played no role in increasing the stakes in CPT by 80% and effectively wasting R120 million over the last 3 years with no return or measurable criteria in place?

Surely the idea of establishing a sand & grass track in Bloemfontein with the money would have made more sense. Over a period of time they could have moved the Kimberly operation to more viable destination with the same R120 million...

Tiger there is no fluke that Steinhoff moved its HQ to Stellenbosch during this time period. You see baas Markus wanted to show all the old money that he was now the biggest breker in Stellies. Part of the deal in getting Kenilworth racing was a guaranteed minimum 26% of the Phumelela stakes pot into perpetuity regardless of the WC performance in regards to tote turnover. This 26% was and remains way above what they contribute to the stakes pot. So to answer your question, Gauteng and Pe owners pay by having to race for less stakes than what they are entitled to to subsidise the WC. So they played a massive role, albeit without the majority of them realising the implication of the deal on their stake money raced for.

Its all there if you bother to do some homework.

You're welcome

I notice today racing in Cape Town there were 3 maiden races with 6 runners each...in Johannesburg there are up to 65 nominations for a maiden race which means 14 runners plus 2 reserves. Now that means 50 others per race are eliminated and begging for races..why on earth is that discrepancy being sponsored by Phumelela??

In fact I see today in Cape Town TOTAL number of carded runners for the whole day equals 65, that is the same number of nominations for ONE MAIDEN RACE in Johannesburg ..people shout for bigger fields to increase tote turnover, well you know where to put more races on and where to take races away, its a no-brainer as they say in the classics!!