MUVONI TECHNOLOGY GROUP LTD - Correction of financial effects

Correction of financial effects

Muvoni Technology Limited (Formerly Ideco Group Limited)
(Incorporated in the Republic of South Africa)
(Registration number: 2001/023463/06)
Share code: MTG ISIN code: ZAE000167268
("Muvoni" or "the Company")


CORRECTION OF PRO FORMA FINANCIAL EFFECTS OF THE PURCHASE
OF THE INTELLECTUAL PROPERTY DEVELOPED BY ZNG
TECHNOLOGIES AG(“THE TRANSACTION”)

Shareholders are referred to the pro forma financial
effects included in the announcement released by the
Company on 12 November 2012 ("the Announcement"), and are
advised that the effect of the Transaction on the
headline earnings per share were incorrectly disclosed in
the Announcement.


FINANCIAL EFFECTS

Shareholders are referred to the correction of the effect
of the Transaction on the headline earnings per share in
the revised table below.

Shareholders are hereby advised that the pro forma
financial effects of the Transaction are set out below.
The pro forma financial effects of the Transaction are
presented for illustrative purposes only and because of
their nature may not give a fair reflection of the
Company`s financial position nor of the effect on future
earnings after the Transaction.


Set out below are the unaudited pro forma financial
effects of the Transaction, based on the reviewed group
results for the six months ended 29 February 2012. The
directors of Muvoni are responsible for the preparation
of the unaudited pro forma financial information:

                               Adjustmen       After
                                     ts 2,3      Pro
                                  (cents         for
                     Before             )         ma
                         29                   Adjust
                      Febru                      men
                        ary                       ts
                      2012 1                      2,3
                                                        Change
                    (cents)                  (cents         4
                                                 )
   Earnings per        2.74       (0.10)      2.64    (3.65%
   share                                                   )
   Headline            0.68       (0.10)      0.58    (14.71
   earnings /                                             %)
   (loss) per
   share
   Net asset          13.09       (0.17)     12.92    (1.30%
   value per                                               )
   share
   Net tangible     (14.47)       (3.39)    (17.86    (23.43
   asset value                                   )        %)
   per share
   Number of        202 222            -       202
   ordinary                                    222
   shares in
   issue /
   Weighted
   average
   number of
   ordinary
   shares in
   issue (‘000)

  Notes:
1. The “Before” basic earnings and headline earnings per
   share have been extracted without adjustment from the
   unaudited, published interim results of Muvoni for the 6
   months ended 29 February 2012. The “Before” net asset
   value and tangible net asset value per share have been
   extracted   without   adjustment   from    the   financial
   information presented in the unaudited, published results
   of Muvoni for the 6 months ended 29 February 2012.
2. The “After pro forma adjustments” earnings per share and
   headline earnings per share assumes:
     o Transaction costs of R480,000 directly relating to
        the transaction. This will not have a continuing
        effect on Muvoni’s financial results.
     o Reduction in royalty expense of R1.2 million paid to
        the Seller in terms of the Royalty Agreement for the
        6 months ended 29 February 2012. This will have a
        continuing effect on the financial results.
     o Reduction in interest income on the portion of the
        Purchase Consideration of R6.5 million paid from
        existing cash reserves based on the average actual
        investment rate of 4.5% for the period and increase
        in finance costs on the portion of the Purchase
        Consideration of R6.5 million paid from overdraft
        facilities based on the average actual overdraft
        rate of 11% for the period, being prime plus 2%.
     o Amortisation of the acquired intangible asset for
        the six months ended 29 February 2012 on a straight
        line basis over the remaining useful life of four
        years. The remaining useful life of the intangible
        asset is commensurate to the remaining term of the
        SAPS contract in respect of the AFISwitch project.
3. The “After pro forma adjustments” net asset value and net
   tangible asset value per share assumes:
     o Payment of R6.5 million in terms of the Purchase
        consideration.
     o Raising of an intangible asset of R6.5 million for
        the acquisition of the intellectual assets.
     o Once-off transaction costs of R480,000 directly
        relating to the Transaction.
4. Measured as the “After pro forma adjustments” column as a
   percentage of the “Before” column.




  14 November 2012
  Designated Advisor
  Sasfin Capital
  (a division of Sasfin Bank Limited)

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