Trading Statement and update on TWK Group financing arrangements
|Name of Issuer||TWK Investments Limited|
|Country of Incorporation||ZA|
TWK Investments Limited - Trading Statement and update on TWK Group financing arrangements
Shareholders of TWK Investments Limited (“TWK”) are hereby advised that a reasonable degree of certainty exists that the profit after tax for the year ended on 31 August 2020 will be materially lower than for the previous comparable period.
The decrease in the total volume of timber marketed and challenging trading conditions in the Motor and Tyres segment (severely affected by Covid-19) as well as in the fertilizer business units contributed to the decrease in profit after tax. This is expected to be between 40% and 45% lower, with basic earnings per share expected to be between 32.5% and 37.5% lower than the previous comparable period.
TWK will publish its financial results for the 12 months ended 31 August 2020 on 26 November 2020. The financial results will be available on TWKs’ website here
Subsequent to year-end, the TWK Board and Standard Bank, have approved that the portion of the Landbank’s participation (R508m) in the syndicated revolving credit facility (with Standard Bank and First National Bank as syndicate partners), is to be placed with Standard Bank. The purpose of the alternative financing arrangements is to address the liquidity risk posed by the Landbank as short term financier and the new arrangements are currently being implemented.
By order of the Board of Directors.
18 November 2020