Shareholders' Update

SHAREHOLDERS’ UPDATE

Shareholders will recall that an update to shareholders was released on 8 March 2016.

Shareholders were advised in that update that a basis on which funds are to be recovered from Government, in terms of the Reserve Bank of Zimbabwe Debt Assumption Bill of July 2015, had been agreed.

Documentation in support of the agreement has still not been completed by Government.  The Company has stressed the urgency of this matter with Government.  This documentation is crucial to the release of the Company’s audited financials for the current year.

The Company has obtained from the Zimbabwe Stock Exchange approval to delay the release of its audited financials until the end of July 2016.

Shareholders will note from comments made in the Chairman’s Statement in the previous year’s financials that disclosure of sums relating to the debt will only be made when the Company is in receipt of the appropriate documentation.

Trading Update

Group turnover for the year to 31 March 2016 increased by 10% relative to the previous year.  With the exception of Hospitality, all segments of the Group contributed to the increase.  The total Group turnover for the year was $454 million.

Operating income increased by 14%.

Expenditure driven primarily by a growth in occupancy costs, resulting from expansion, increased by only 1% relative to the previous year.  This increase represents an effective decline relative to the growth in turnover.

EBITDA increased by $11.5 million relative to the previous year.

The financial implications of the agreement with Government will be included in the annual results for the year to 31 March 2016.

The Board regrets the delay in the release of the audited financials.

BY ORDER OF THE BOARD

12 July 2016