AECI Limited Trading Statement for 6 Months ended 30 June 2021

 
TIDM87FZ 
 
AECI LIMITED 
 
Incorporated in the Republic of South Africa 
 
(Registration number: 1924/002590/06) 
 
Share code: AFE ISIN: ZAE000000220 
 
Hybrid code: AFEP ISIN: ZAE000000238 
 
Bond company code: AECI 
 
LEI: 3789008641F1D3D90E85 
 
(AECI or the Company or the Group) 
 
TRADING STATEMENT FOR THE HALF-YEAR ENDED 30 JUNE 2021 AND UPDATE REGARDING 
CIVIL UNREST 
 
In compliance with the JSE Limited Listings Requirements, shareholders and 
noteholders are advised that for the half-year ended 30 June 2021 (the period), 
AECI's headline earnings per share (HEPS) and earnings per share (EPS) are 
expected to be between 515 cents and 540 cents.  This is between 115% and 125% 
higher than the 240 cents HEPS reported for the half-year ended 30 June 2020 
(the prior corresponding period) and between 110% and 120% higher than the 245 
cents EPS reported for the prior corresponding period.  The significant 
contributors to the changes were as follows: 
 
  * Although the negative effects of the COVID-19 pandemic continue to have an 
    impact on some of the sectors in which AECI's customers operate, this 
    impact has been less severe than in the first six months of 2020. 
  * The costs incurred to restructure businesses in AECI Chemicals in 2020, to 
    enhance sustainability in South Africa's low growth environment, did not 
    recur and the benefits of restructuring were realised in line with 
    expectations. 
  * EPS in the prior corresponding period was negatively affected by the 
    impairment of goodwill, property, plant and equipment as a result of the 
    Group exiting non-performing businesses. This negative EPS effect was 
    offset by the profit on disposal of the Group's paper chemicals business 
    unit. 
 
The financial information on which this trading statement is based has not been 
reviewed and reported on by the Company's external auditor. 
 
AECI's results for the half-year ended 30 June 2021 are expected to be released 
on SENS on or about Wednesday, 28 July 2021. 
 
CIVIL UNREST IN SOUTH AFRICA 
 
The violence, looting and general lawlessness being experienced in South Africa 
is a matter of extreme concern and the Company condemns it in the strongest 
terms. 
 
The safety of our people is our priority.  Some of our employees and their 
families, in KwaZulu-Natal and parts of Gauteng, have been directly affected by 
the unrest.  We continue to monitor their wellbeing and assist them wherever 
possible. 
 
All our businesses remain operational at this time and we are collaborating 
closely with our customers and suppliers to safeguard the supply chain. 
 
At this time, the Company is unable to quantify the real or potential impact of 
the prevailing volatility on its businesses.  Information in this regard will 
be shared, as appropriate, when it is possible to do so. 
 
Woodmead, Sandton 
 
16 July 2021 
 
Equity and Debt Sponsor: Rand Merchant Bank (A division of FirstRand Bank 
Limited) 
 
 
 
END

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