Wrap Text
Results for the year ended 30 June 2022, availability of IAR, audited AFS, and notice of AGM
EPE CAPITAL PARTNERS LTD
INCORPORATED IN THE REPUBLIC OF MAURITIUS
REGISTRATION NUMBER: C138883 C1/GBL
ISIN: MU0522S00005
SHARE CODE: EPE
("ETHOS CAPITAL" OR "THE COMPANY" OR "THE GROUP")
RESULTS FOR the YEAR ENDED 30 JUNE 2022,
AVAILABILITY OF IAR, AUDITED AFS, AND
NOTICE OF AGM
INTRODUCTION
EPE Capital Partners Ltd is an investment company, registered and incorporated in Mauritius as a public company. It is listed on the Johannesburg Stock
Exchange ("JSE") and offers shareholders long-term capital appreciation by making commitments and investments into Funds or Co-Investments that are managed
by Ethos Private Equity (Pty) Limited ("Ethos"), providing the Company with largely indirect exposure to a diversified portfolio of unlisted private
equity-type investments ("Portfolio Companies"). The Group refers to the consolidated results of the Company and its deemed controlled entity.
The Group's performance is largely measured by the growth in the net asset value ("NAV") and NAV per share ("NAVPS")
Ethos acts as Ethos Capital's Investment Advisor and the Manager of the Funds that Ethos Capital invests in. Ethos is an investment firm that manages
investments in private equity and mezzanine transactions in South Africa and other sub-Saharan African ("SSA") countries.
RESULTS ANNOUNCEMENT
Key highlights
- Strong performance across most Portfolio Companies resulted in a broad-based profit recovery to above pre-COVID levels in most of the businesses.
- Attributable EBITDA grew by 34% year on year benefitting from strategies implemented to counter the effects of COVID and enhance business sustainability.
- NAVPS of R10.66 (at Brait's NAVPS), and R8.49, (at Brait's share price), representing annual increases of 16% and 27% respectively.
- The value uplift was a result of broad increases across the portfolio driven predominantly by profit growth and increases in the listed investments' share
prices.
- Converted the investment pipeline into new investments of R314 million, including participation in Crossfin (a new fintech investment) and the Brait
- exchangeable bonds.
- Carrying value of invested capital increased to R2.7 billion with exposure to 23 Portfolio Companies.
- Continued demonstration of exiting investments at a premium to NAV.
Overview
The 2022 financial year demonstrated a strong recovery from the effects of COVID despite new challenges and volatility, driven by the Ukraine invasion,
global inflation, higher interest rates, and energy and supply chain constraints, and locally, the knock-on effect of the July 2021 unrests.
The South African economy and many of the SSA economies have proved relatively resilient although consumers remain under pressure due to the impact of high
inflation on disposable income which has led to changing spending patterns and some down trading. There are early positive signs of government engagement
and intervention in the South African market including more urgency to address the Eskom issues, regulatory certainty and simmering labour unrest.
The operational and strategic improvements implemented in the last two years across most of the Portfolio Companies resulted in broad-based growth in
profitability with the majority of companies achieving profit levels in excess of their pre-COVID levels and those that have been more severely impacted,
showing a sustainable recovery. Nearly 70% of the unlisted companies (by value) grew EBITDA by more than 25% during the year.
The investment portfolio achieved a gain of R552 million for the year. The unlisted portfolio return increased by R345 million (a 22% return over the year),
driven by the growth in profitability and local currency depreciation. Pleasingly, the valuation increases were broadly across the entire portfolio with
the largest increases being Optasia, Gammatek and TymeBank. The NAVPS (including Brait at is NAVPS) increased by 16% from R9.19 (at 30 June 2021) to R10.66.
The share prices of the listed investments (Brait and MTN Zakhele Futhi) increased significantly (42% and 52% respectively) during the year resulting in a
R207 million value increase which contributed to the resultant 27% increase in Ethos Capital's NAVPS (including Brait at its share price) from R6.67 to
R8.49.
During the year, EMMF I completed its ninth investment into Crossfin Technology Holdings (Pty) Ltd ("Crossfin"). Crossfin is a leading independent fintech
platform that operates a highly differentiated business model based on investing and supporting an ecosystem of synergistic and complementary fintech
businesses at different stages of maturity which has allowed the platform to consistency achieve robust top line and earnings growth.
In November 2021, Brait announced a rights offer to subscribe for up to R3.0 billion of exchangeable bonds. The exchangeable bonds, listed on the JSE have a
5% coupon and may be exchanged for Brait ordinary shares at any time from 31 January 2022 until December 2024 at an exchange price of R4.37. Through its
participation in Ethos Funds, Ethos Capital invested R314 million during the year and these and other follow-on investments, coupled with the unrealised
gains, increased Ethos Capital's total assets to R2.7 billion.
The Ethos Funds and Brait concluded a number of realisations during the year all at significant premiums to their prevailing NAVs prior to the disposal.
Since Ethos Capital's listing in 2016, Ethos has exited eight assets at an average Times Money Back of 1.9x and a realised IRR of 20%.
Whilst global economic uncertainties remain elevated, opportunities exist for alpha generating investments and leveraging the increasing international
interest in South African assets for fund divestments. Given the uncertain economic outlook, the Board believes that remaining focused on theme / tailwind
led investing, leveraging the sector, active management and domain expertise of the Investment Advisor, coupled with other capital allocation strategies,
including buybacks, should result in strong investment returns.
FINANCIAL POSITION AND INVESTMENT PORTFOLIO
EXTRACT OF STATEMENT OF FINANCIAL POSITION
Group Company
30 June 2022 30 June 2021 30 June 2022 30 June 2021
R'million R'million R'million R'million
ASSETS
Non-current assets
Unlisted investments at fair value 2,650.6 1,827.3 2,650.6 1,827.3
Current assets 17.3 57.1 16.8 56.7
TOTAL ASSETS 2,667.9 1,884.4 2,667.4 1,884.0
EQUITY AND LIABILITIES
Total Ordinary shareholders' equity 2,186.9 1,716.4 2,354.7 1,871.9
Non-current liabilities 460.5 156.0 292.2 -
Current liabilities 20.5 12.0 20.5 12.1
Total Liabilities 481.0 168.0 312.7 12.1
TOTAL EQUITY AND LIABILITIES 2,667.9 1,884.4 2,667.4 1,884.0
NET ASSET VALUE 2,186.9 1,716.4 2,354.7 1,871.9
Basic Net Asset Value per share (Rand) 8.49 6.67 8.69 6.91
Attributable shares in issue ('000) 257,500 257,500 271,000 271,000
TOP 10 UNDERLYING PORTFOLIO COMPANIES - AT 30 JUNE 2022
Name Business description Year* % of Total assets
Optasia FinTech service provider 2018 28.7
Premier (Brait) FMCG manufacturer 2020 9.7
Virgin Active (Brait) Health club operator 2020 8.7
Vertice MedTech 2018 7.1
Echo Corporate ISP 2018 7.0
Synerlytic Specialised analytical and testing services 2019 6.3
Crossfin FinTech group 2021 5.2
Gammatek TMT accessory distribution 2018 5.0
Primedia Media 2017 2.9
TymeBank Banking 2019 2.3
82.9
Brait EB Exchangeable bonds 2021 7.5
Other (13 Portfolio Companies) 9.0
Total underlying investments 99.4
* Initial acquisition date by Ethos Fund
RESPONSIBILITY STATEMENT
This short-form announcement is the responsibility of the Directors of Ethos Capital and is only a summary of the information in the full announcement and
does not contain full or complete details. The announcement is itself not audited but extracted from audited results. Any investment decision should be
based on the full announcement which is available from today at:
https://senspdf.jse.co.za/documents/2022/JSE/ISSE/EPEE/EPECAP0622.pdf
and is published on the Company's website, alongside the Annual Financial Statements and the auditor's unqualified report including its identified key audit
matters, at:
https://ethoscapital.mu/investors/reports-results/
Copies of the full announcement may also be requested from the Company Secretary (represented by Kenny Curpen) at no charge at +230 (0) 403 6000, during
office hours, or at ethoscapital@ocorian.com.
PRESENTATION
Ethos Capital will host a webcast presentation at 12h00 pm on Wednesday, 28 September 2022 covering the results relating to the year ended 30 June 2022, and
outlook. A copy of the presentation will be available for download on the Company's website at https://ethoscapital.mu/investors/reports-results/
For their convenience on the day, participants should please register for the webcast in advance by navigating to this website:
https://www.diamondpass.net/9666053
AVAILABILITY OF ANNUAL FINANCIAL STATEMENTS
The Annual Financial Statements for the year ended 30 June 2022, the Integrated Annual Report, the Notice of Annual General Meeting and the auditor's
unqualified report including its key audit matters, have all been published on the Company's website and the document is available at
https://ethoscapital.mu/investors/reports-results/ or can be obtained or requested from the Company's registered office.
The Integrated Annual Report, Annual Financial Statements and the Notice of the Annual General Meeting will be distributed on or before 19 October 2022.
NOTICE OF ANNUAL GENERAL MEETING
Notice is hereby given that the Annual General Meeting of Ethos Capital shareholders will be held on Wednesday, 16 November 2022 at 14h00 via a remote
interactive electronic platform, to transact the business as stated in the Annual General Meeting Notice forming part of the Integrated Annual Report and
Annual Financial Statements.
Salient dates
2022
Record date to determine which shareholders are entitled to receive the notice of annual general meeting Friday 07 October
Last day to trade in order to be eligible to attend and vote at the annual general meeting Tuesday 8 November
Record date to determine which shareholders are entitled to attend and vote at the annual general meeting Friday 11 November
Forms of proxy for the annual general meeting to be lodged by 14h00 on*, for administrative purposes Monday 14 November
*any proxies not lodged by this time must be lodged by email to proxy@computershare.co.za immediately prior to the commencement of the Annual General
Meeting.
CORPORATE INFORMATION
Directors
Yvonne Stillhart (Chairperson)
Derek Prout-Jones
Kevin Allagapen
Michael Pfaff
Yuvraj Juwaheer
Senior Advisors (Officers)
Jean-Pierre van Onselen (CFO)
Peter Hayward-Butt (CEO)
Investment Advisor
Ethos Private Equity (Pty) Limited
35 Fricker Road
Illovo
Johannesburg, 2196
Company Secretary and Registered Office
Ocorian
6th Floor, Tower A,
1 Cybercity
Ebene
Mauritius
Auditors
Deloitte & Touche
Level 7
Standard Chartered Tower
19 Cybercity
Ebene
Mauritius
Deloitte & Touche
5 Magwa Crescent
Waterfall City
Johannesburg, 2090
Listing
JSE Limited
Abbreviated name: ETHOSCAP
JSE code: EPE
Sector: Financials - Equity Investment Instruments
Transfer Secretary
Computershare Investor Services Proprietary Limited
15 Biermann Avenue
Rosebank, 2196
Sponsor
Rand Merchant Bank (A division of FirstRand Bank Limited)
1 Merchant Place
Cnr Fredman Drive & Rivonia Road
Sandton, 2196
Disclaimer
The financial information in this announcement is itself not audited, but is extracted from the audited Annual Financial Statements.
Ebene, Mauritius (with simultaneous circulation in Johannesburg)
28 September 2022
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 28-09-2022 08:15:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
