| Imagery Source: Santova Limited |
| Information Source: JSE SENS |
| Voluntary Trading Statement |
| Santova is in the process of finalising its results for the year ended 28 February 2025 and shareholders are accordingly advised that the Company has reasonable certainty that the Company is expecting to announce earnings per share (“EPS”) of between 111.43c and 117.02c, headline earnings per share (“HEPS’’) of between 110.93c and 117.12c and recurring headline earnings per share (“RHEPS”) of between 111.41c to 116.91c. |
| In evaluating these results, users should take into account that the company recorded a non-recurring fair value gain on contingent consideration of R18.3 million in the prior period. This fair value gain was included in the calculation of EPS and HEPS but was removed for purposes of the calculation of RHEPS in the prior period and thus represents the key difference between RHEPS, HEPS and EPS in the prior period. |
| The financial information on which this trading statement is based has not been reviewed or audited by the Company`s external auditors, Moore Johannesburg Inc. |
| The Company’s annual financial statements for the year ended 28 February 2025 are expected to be published on SENS on or before 30 May 2025. |
| Renewal of Cautionary Announcement |
| Further to the cautionary announcement dated 11 February 2025 and the renewal of cautionary announcement dated 25 March 2025, shareholders are advised that negotiations are still in progress to acquire a Group of companies providing seamless omnichannel fulfillment, express courier, warehouse and supply chain logistics services primarily in the United Kingdom and the Netherlands, which, if successfully concluded, may have a material effect on the price of the company’s securities. |
| Rationale for the Transaction |
| As Santova evolves and the take-on of larger, more complicated supply chains of multinational clients becomes more frequent, the ability to leverage strategically located fulfilment centres and technologies will be key if it is to remain competitive and meet growing customer expectations. For this reason, the company has entered negotiations to acquire a Group which was founded in 1962 and is a leading logistics provider across the United Kingdom and Europe. This business would offer Santova the ability to offer clients strategically located fulfilment centres in the Netherlands, the gateway to Europe, as well as in the United Kingdom. |
| These facilities, unlike traditional warehouses, are designed for the processing and shipping of customer orders as opposed to bulk storage and long-term inventory holding. Specialist activities or services would include fast picking, packing and dispatching, and the integration directly with online order/sales platforms. |
| This will fast-track Santova’s strategy, which is focused on the e-commerce market. The rise of e-commerce continues to drive demand for faster and more efficient logistics services, particularly in areas like last-mile delivery. At the same time, demand for warehousing space is high, particularly for e-commerce fulfilment. Finding suitable land and securing planning permission is becoming more and more difficult in Europe, particularly in the Netherlands. |
| Source of funding |
| The Transaction, if successful, will be financed through existing cash reserves and available debt facilities. |
| Further Cautionary |
| Shareholders are advised to continue exercising caution when dealing in the company’s securities until a full announcement is made. |
| For the full document, click the link below |
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Santova Limited |
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