Advtech : SENS Announcement

ADvTECH Limited

(Incorporated in the Republic of South Africa)

(Registration number 1990/001119/06)

Share code: ADH ISIN: ZAE000031035

('ADvTECH' or 'the group')

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2019 AND ANNOUNCEMENT OF DIVIDEND DECLARATION

1. Salient features

Revenue increased by 15% to R2 499 million, from the restated R2 175 million in the prior corresponding period.

Operating profit before interest and non-trading items increased by 6% to R428 million, from the restated R404 million in the prior corresponding period.

Earnings per share ('EPS') increased by 32% to 44.4 cents per share, from the restated 33.6 cents per share in the prior corresponding period.

Headline earnings per share ('HEPS') increased by 28% to 43.4 cents per share, from the restated 33.8 cents per share in the prior corresponding period.

Normalised earnings increased by 8% to R229 million, from the restated R213 million in the prior corresponding period.

Normalised earnings per share ('NEPS') increased by 7% to 42.5 cents per share, from the restated 39.7 cents per share in the prior corresponding period.

The group has implemented IFRS 16: Leases relating to accounting for leases using the retrospective approach which resulted in the prior corresponding period ended 30 June 2018 to be restated.

2. Declaration of interim dividend number 20

Following the recent acquisition of IIE MSA, together with the significant investment opportunities available to the group and the associated capital expenditure requires that the group considers cash preserving measures. This has previously been signalled by the board with a steady increase in dividend cover in recent reporting periods. Capital commitments amount to R1.4 billion and will largely be funded by way of debt. Taking these commitments into account, together with the continuing challenging economic environment, the board has decided it would be prudent and responsible to continue preserving cash and have therefore maintained the dividend pay-out during this high capital investment period.

An interim gross dividend of 15.0 cents (2018: 15.0 cents) per ordinary share has been announced in respect of the half year ended to 30 June 2019.

This is a dividend as defined in the Income Tax Act, 1962, and is payable from income reserves. The South African Dividend Taxation (DT) rate is 20%. The net amount per share payable to shareholders who are not exempt from DT is 12.0 cents per share, while it is 15.0 cents per share to those shareholders who are exempt from DT. ADvTECH's income tax number is 9550/190/71/5.

There are 546.6 million ordinary shares in issue. The total dividend amount payable is R82 million.

The salient dates and times applicable to the dividend referred to above are as follows:

2019

Publication of declaration and finalisation information	Thursday, 29 August
Last day to trade in order to participate in the dividend	Monday, 23 September
Trading commences ex-dividend	Wednesday, 25 September
Record date	Friday, 27 September
Payment date	Monday, 30 September

Share certificates may not be dematerialised or rematerialised between Wednesday, 25 September 2019 and Friday, 27 September 2019, both dates inclusive.

3. Short-form announcement

This short form announcement, which is the responsibility of ADvTECH's directors, is only a summary of information in the full announcement and does not contain full or complete details. Any investment decisions by shareholders and/or investors should be based on consideration of the full announcement. The full announcement can be found at:

https://senspdf.jse.co.za/documents/2019/jse/isse/ADH/FY2019H1.pdf

The full announcement is also available for viewing on the company's website at https://www.advtech.co.za/Documents/2019/ADvTECH_SENS%20ANNOUNCEMENT_INTERIM%20RESULTS_JUNE%202019.pdf or a copy may be requested in person, at the company's registered office or the office of the sponsor, at no charge, during office hours. Copies of the full announcement may also be requested from ADvTECH's group investor relations at [e-mail].

29 August 2019

Johannesburg
Sponsor: Bridge Capital Advisors Proprietary Limited