ETION LIMITED

(Incorporated in the Republic of South Africa)

(Registration Number: 1987/001222/06)

(Share Code: ETO)

(ISIN: ZAE000097028)

("Etion" or "the Company")

TRADING STATEMENT

In terms of the JSE Limited Listings Requirements, a listed company is required to publish a trading statement as soon as it becomes reasonably certain that the financial results for the next period to be reported on will differ by 20% or more from the financial results for the previous corresponding period.

The Company hereby advises that a reasonable degree of certainty exists that for the financial year ended 31 March 2022:

  • earnings per share ("EPS"), including continuous and discontinued operations, will be

between 26.3 cents and 28.2 cents, representing an increase of between 182.8% and 203.2% compared to the EPS of 9.3 cents reported for the financial year ended 31 March 2021.

  • headline earnings per share ("HEPS"), including continuous and discontinued operations, will be between 11.8 cents and 13.7 cents, representing an increase of between 26.9% and 47.3% compared to the HEPS of 9.3 cents reported for the financial year ended 31 March 2021.

The increase in EPS and HEPS is mainly due to Etion continuing to achieve sustainable growth in profitability and a result of the Company benefitting from a R140.6 million gain on the disposal of Etion Secure ("LAWTrust") and LAWTrust's profit contribution during the first half of the 2022 financial year. The remaining entities Etion Create and Etion Connect traded well despite the ongoing pressure of COVID-19, supply chain disruptions and component shortages. The performance improvement is attributable to (i) increased demand for products and services; (ii) effective delivery of growing customer orders, including major long-term contracts in the defence, mining, and telecommunication markets; (iii) a strong focus on the management of inventory and cash; and (iv) the positive effects of streamlining operations during the previous two financial years.

The financial information on which this trading statement is based has not been reviewed or reported on by the auditor of the Company. The reviewed results for the period ended 31 March 2022 are expected to be published on or about 29 June 2022.

Pretoria

24 June 2022

Designated Adviser

PSG Capital

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Etion Limited published this content on 24 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 June 2022 11:35:02 UTC.