14 November 2019
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During the June 2019 financial period, Ecsponent continued to focus on its core business activities, building on the foundation it created through a series of rationalisation transactions in the previous periods. Notable transactions during this period included additional investments in MyBucks S.A. (“MyBucks”), a Frankfurt-listed (Luxembourg based) fintech company. MyBucks banking and consumer lending operations are active in six African countries of which five hold banking licenses.
The financial results reflect the impact of the Group’s operations against a backdrop of challenging operating conditions, which included a weak global economy, subdued consumer sentiment and currency volatility. The results were also impacted by the reduction of the interest-bearing credit loan book during the book build process in the run up to taking control of MyBucks. In addition, the rationalisation of the MyBucks operations which is aimed at ensuring strong future performance and sustained profitability, affected results during this financial period.
During the period, the Group focused on diversifying its Equity Holdings portfolio (in addition to the MyBucks investment), with investments in asset managers. The Group also made an investment in a mineral claim announced after the financial year end.
Looking to the future, the Group aims to support its growing asset base with platforms that hold significant intrinsic value and provide diversification across sectors, geographies and currencies. To support this, Ecsponent is evaluating further investments in high-growth sectors with longer term investment horizons.
Highlights of the Group’s results for the period ended 30 June 2019 are set out below together with the information for the previous comparative period, being the 15 months ended 30 June 2018:
• revenue decreased by 18% to R382 million compared to R467 million in the comparative period;
• operating profits decreased by 76% to R97 million compared to R412 million in the comparative period;
• earnings per share decreased by 350% to a loss per share of 23.66 cents compared to an earnings per share of 9.47 cents in the comparative period; and
• headline earnings per share decreased by 281% to a headline loss per share of 12.64 cents compared to a headline earnings per share of 6.99 cents in the comparative period.
No ordinary dividends have been declared in the current or previous periods and no ordinary dividend is proposed.
This short-form announcement is the responsibility of the Board and is only a summary of the information contained in the full announcement published on SENS on 14 November 2019. Read the full announcement.