Condensed Consolidated Reviewed Interim Results for the 6 months ended 30 June 2016
The Board of Directors is pleased to advise shareholders of continued exponential growth of Ecsponent and its subsidiaries (“the Group”) as reflected in further improved, consolidated results for the 6 months ended 30 June 2016. Read the full SENS announcement.
Ecsponent increased its strategic focus on selected markets during the first half of the 2016 financial year by effecting further investments in niche financial services companies. Assets which have clear African and global market application have received priority. The directors envisage that this expansion strategy will be further refined in order to dominate niche sectors of the markets in which the Group operates.
The access to capital through the issue of preference shares resulted in continued improvement in the Group’s performance and generated increased returns for the 6 months ended 30 June 2016. Highlights of the Group’s 2016 interim results compared to the 2015 interim results are set out below:
- Total revenue increased by 74.7% to R116.7 million compared to R66.8 million;
- Gross profits increased by 97.8% to R95.8 million compared to R48.4 million;
- Operating profits increased by 166.7% to R58.4 million compared to R21.9 million;
- Profits before tax increased by 61.5% to R28.5 million compared to R17.7 million;
- Current assets increased by 265.3% to R652 9 million compared to R178.7 million;
- Total assets increased by 163.6% to R777.1 million compared to R294.8 million; and
- Resultant earnings per share (“EPS”) increased by 26.3% to 2.23 cents per share compared to1.76 cents per share.
The EPS increase unfortunately did not flow through to headline earnings per share (“HEPS”) as a result of IFRS categorisation. In the comparative period for 2015 the benefit on the disposal of the financial asset was categorised under IFRS 39 and therefore included in the calculation of HEPS while the disposal of the Swaziland retail credit business during the period under review was categorised under IFRS 10 and is therefore excluded from the HEPS calculation.
External revenue generated by the Group’s financial services operations increased by 238.2% to R85.9 million compared to R25.4 million, comprising 73.6% of total revenue in the 2016 interim results. Funding for the Group’s expansion strategy continues to be facilitated through Ecsponent’s preference share programme, enabling the Company to raise capital to fund investments on an ongoing basis. Continued market subscriptions of preference shares have been very encouraging and the Company has raised approximately R441 million through Preference Shares issues since implementation in September 2014.
- Operational review and prospects
- Notes to the condensed consolidated financial statements
- Corporate actions
- Statement of financial position
- Statement of profit and loss and other comprehensive income
- Statement of changes in equity
- Cash flow statement
- Earnings and fully diluted earnings per share
- Asset value per share
- Other financial assets
- Preference share capital
- Other financial liabilities
- Related party disclosures
- Financial instruments – fair value and risk management
- Summarised consolidated segmental information