Avior Capital Markets - Lewis Group Ltd. (134R) LEW | Adding UFO to the retail space mix

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Avior Capital Markets

LEW | Adding UFO to the retail space mix

Lewis Group (LEW) reported H1'18 results slightly below our revised expectations. Management's outlook is for trading conditions to stay challenging for the remainder of FY'18. We believe the proposed UFO furniture retail acquisition will enhance the group's cash sales mix and diversify its customer segment exposure. We remain positive around the group's medium-term prospects, including a steadily improving Beares retail segment and Rest of Africa profit contribution.

23/11/2017 1 EN

Underlying

Lewis Group Ltd.

Lewis Group is a holding company operating through two main trading subsidiaries, Lewis Stores Proprietary Limited, which provides a range of furniture and appliances, and Monarch Insurance Company Limited, a registered short-term insurer that underwrites Customer Protection Insurance benefits to South African customers. Co.'s segments include: Lewis, which sells a range of household furniture, electrical appliances and home electronics; Best Home and Electric, which is a retailer of electrical appliances, sound, vision equipment and furniture; and Beares/My Home, which is a retailer of upmarket furniture.

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ZAE000058236 Johannesburg Stock Exchange South Africa

Provider

Avior Capital Markets

Avior is a globally recognised capital markets research and trading firm, with the broadest research coverage within the region, with 100+ SA and 20+ SSA companies under coverage. Avior services clients from offices in London, Cape Town and Johannesburg.

Our research quality is consistently recognised in local and global surveys, with 18 analysts currently rated in their respective sectors (FM 2017). Value add through in-depth, innovative, high quality and consistent research with comprehensive underlying fundamental modelling supported by regular analyst and roadshow interactions.

Avior has proven that by working closely with our clients we can mutually develop dominant positions in certain sectors, going from strength to strength. Avior has a dedicated ESG team, having been ranked #1 in Corporate Governance research since 2008.

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LEW | Adding UFO to the retail space mix

5 directors sold after exercising options/sold

Lewis (LEW) - Landing UFO

Tiger Brands | ESG | Pressed to execute

SA Investment Strategy | Review of January 2020 for SA investors: Coronavirus weighs on the ZAR

SA Banks | Low credit risk in commercial property | Time to buy SA banks

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