Wrap Text
UNAUDITED SUMMARY OF CONDENSED CONSOLIDATED RESULTS
FOR THE SIX MONTHS ENDED
28 FEBRUARY 2021
Purple Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/013637/06)
Share code: PPE ISIN: ZAE000185526
("Purple Group" or "the Company" or "the Group").
UNAUDITED SUMMARY OF CONDENSED CONSOLIDATED RESULTS
FOR THE SIX MONTHS ENDED 28 FEBRUARY 2021
GROUP HIGHLIGHTS
- Group revenue increased by 79.5% to R100.6 million, compared to R56.0 million;
- EBITDA increased by 324.4% to R33.9 million;
- The Group realised a profit of R15.2 million, compared to R0.9 million in the comparative period; and
- The Group generated a profit attributable to shareholders of R8.3 million, compared to a profit of R0.8 million in the
comparative period, an increase of 884.1%.
EASYEQUITIES HIGHLIGHTS
- EasyEquities revenue increased by 197.6% to R85.0 million;
- EasyEquities generated a profit after tax of R22.3 million, compared to a profit of R0.08 million in the comparative period;
- Platform assets increased by 70.3% to R26.9 billion; and
- Funded retail investment accounts increased by 161% to 519 816.
COMPARED TO THE PREVIOUS CORRESPONDING PERIOD ENDED 29 FEBRUARY 2020:
- PURPLE GROUP'S BASIC AND HEADLINE EARNINGS PER SHARE INCREASED BY 844.4% FROM 0.09 CENTS TO 0.85 CENTS; AND
- THE GROUP'S NET ASSET VALUE PER SHARE INCREASED BY 8.4% FROM 29.32 CENTS TO 31.79 CENTS.
SURGING FORWARD
When we updated shareholders this time last year, we titled our feedback "Surge towards the tipping point". At the time, despite
the many Covid-19 and global economic challenges, we were confident that our team and our clients were well positioned to
maximise value for themselves and all stakeholders. We are proud that, a year later, we can report back on major achievements.
EasyEquities has just about tripled revenue, funded retail investment accounts are up 161%, platform assets have increased by
70.3% to R26 billion and the EasyEquities business has generated a profit after tax of R22.3 million for the six months. The tipping
point may well have been reached, however, we shun complacency and remain laser focused as we continue to deliver with and
for our partners and clients.
Half-year results are always an opportunity to reflect on the past, to take stock, and to consider the outlook for the remainder of
the year.
The past six months performance of the Purple Group has starkly highlighted the immense growth opportunity evident in the
EasyEquities Group.
We continue to see volatility in the earnings of our derivatives trading platform, GT247.com, which is expected and appropriately
risk managed. Although the recent performance of GT247.com is disappointing, especially the impact it has on the Groups results, it
is a business that has generated substantial profits for the Group, specifically over the past few years, and we still believe that the
products and services offered by GT247.com fill a gap, although niche, in the trading landscape of South Africa.
Emperor Asset Management, although a small part of the Group currently, has generated a small profit for the six months and
remains a complementary business to EasyEquities and RISE. The Emperor team was awarded a coveted Raging Bull Award in
respect of its global equity strategy. The IP Global Momentum Equity Fund managed by Emperor Asset Management was recognised
as the best performing global equity fund over a three-year period. For us this award and the ongoing work our Emperor team is
doing is testimony to not giving up when times are tough. We are excited that in the next reporting period, the Emperor team will
be driving the launch of unit trusts on the EasyEquities platform. As a market of assets in excess of R2 trillion, unit trusts on our
platform offer traditional and new retail investors the opportunity to access additional financial instruments to grow their wealth.
EasyProperties is on track to have a property portfolio of over R100 million in its first year, allowing retail investors to own property
in an innovative way. We are proud of this result. Clients are largely existing EasyEquities users, resulting in a very low cost of
acquisition, and the team can focus on having a continuous pipeline of exciting properties on offer. Our next planned move is into
international property listings.
The EasyEquities results speak for themselves but we would like to highlight the diversity and power of our community. From minors
who have accounts opened for them to 90-year-olds actively investing, from famous celebrities, business icons and legendary
authors and artists to unknown, but to us equally extraordinary, new investors, hundreds of thousands of people, daily, engage with
our platform. Their smarts and passionate activism to help themselves and each other to grow wealth, is infectious. This is what
continues to inspire us as we approach one million registered users.
Our journey is certainly far from over, it has scarcely begun. We remain committed to continue with the investment revolution
- making it possible for anyone to achieve financial freedom and dignity, no matter their background, investment experience or
financial resources. Thank you for being a part of the journey.
9 April 2021
This short-form announcement is the responsibility of the directors and is only a summary of the information in the full announcement
and does not contain full or complete details. Any investment decision should be based on the full announcement which is available on
our website at https://www.purplegroup.co.za/hubfs/PPE Results 2021/PPEInterim2021Full.pdf or at
https://senspdf.jse.co.za/documents/2021/jse/isse/PPE/Int2021.pdf. Copies of the full announcement may also be requested at the offices
of our sponsors and at our registered offices at no charge, during office hours. This announcement has not been audited nor reviewed by
the company's external auditors. Any forward-looking statement has not been reviewed or reported on by the company's external auditors.
Executive directors: Charles Savage (Chief Executive Officer), Gary van Dyk (Chief Financial Operations Officer).
Non-executive directors: Happy Ntshingila* (Chairman), Arnold Forman*, Craig Carter*, Bonang Mohale, Mark Barnes (*Independent).
Company Secretary: 4 Africa Exchange Registry Proprietary Limited.
Registered office: 16th Floor, 25 Owl Street, Braamfontein Werf, 2092. PO Box 411449, Craighall, 2024, info@purplegroup.co.za.
Auditors: BDO South Africa Incorporated, Registered Auditors, Wanderers Office Park, 52 Corlett Drive, Illovo, 2196.
Share registrars: 4 Africa Exchange Registry Proprietary Limited.
Sponsors: Deloitte and Touche Sponsor Services Proprietary Limited, Deloitte, 5 Magwa Crescent, Waterfall City, Midrand, 2090.
Date: 09-04-2021 02:29:00
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