Wrap Text
Summarised financial results for the year ended 31 August 2013
EFICIENT GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number: 2006/036947/06)
JSE share code: EFG ISIN: ZAE 000151841
(Efficient or the Group)
SUMMARISED FINANCIAL RESULTS FOR THE YEAR ENDED 31 AUGUST 2013
COMMENTARY
Considering the changes that continue to take place in the financial services industry, we need to ensure that the practical roll-out of our business strategy is aligned with prevailing industry trends at all times. Whilst recent changes in the regulatory environment have added additional costs to the business, they have also provided us with opportunities for accelerated growth.
Our investment into our business over the past three years, and more specifically the investment in the support infrastructure of our business components and further investment into our Efficient brand, have all contributed to improved financial results.
Whilst a number of important milestones have been achieved with the roll-out of our strategy and although financial performance continues to improve, we will be making further significant investments in Efficient Advise, Efficient Invest and the marketing and branding of the business in the coming financial year.
Financial Results
The success of the implementation of the Groups long-term strategy to, amongst other, invest in the expansion of its distribution network, invest in the Efficient brand and the realignment of the asset management division, is entrenched in the operating results of the Group. Efficient reported an operating profit of R 2.2 million, generated profit after tax of R 2.5 million and generated cash of R 11.8 million from operations.
Included in the results for the 2013 financial year is the impairment of the investment in Thebe Stockbroking (Pty) Ltd and the loss reported by our non-controlling investment in an information technology business. The Group invested surplus cash in one of the unit trust funds managed by the asset management division. The unrealised fair value adjustment on this investment resulted in an increased return on surplus funds.
Net tangible assets per share increased by 21%. The Group has no interest bearing debt and retains a three month fixed cash expenses reserve. Assets under management remain materially at the same levels as previously reported while assets under advice increased significantly.
A substantial share of the Groups revenue is based on the value of assets under management, assets under administration and assets under advice. Assets under management are represented by amounts invested in the unit trust funds, unit trust funds of funds and private share portfolios managed by the asset management division. The Group has R 2 544 million (2012: R 2 626 million) under management. Assets under administration are represented by unit trust funds and unit trust funds of funds administrated by the Group. Administration of assets includes liability administration and asset administration such as daily pricing of unit trust funds. The Group administrates assets amounting to R 2 253 million (2012: R 2 177 million). Assets under advice are represented by client investments made on the recommendation of or with the guidance of financial planners employed by Efficient Financial Services. Total investments by clients with investments under advice amounts to R 2 264 million (2012:R 1 687 million).
The increase in revenue of 43% compared to the prior financial year is a direct result of the success of the asset management enhancement project embarked on approximately two years ago, combined with the increase in the financial services distribution network. For the 12 months ended 31 August 2013 the Group generated R 79 million in revenue (2012: R 55 million).
Performance fees increased by 61% and the asset management base fees and administration fees increased by 5%. The increase in asset management fees is mainly due to the full year effect of the changes in the investment philosophy and process and the alignment of the fee structure to industry best practises.
Financial services (including the asset finance division) increased revenue by 82% primarily by increasing the number of independent financial advisors from 36 to 53. In line with the increase in revenue the variable expenses also escalated. The net effect of the increase in revenue and variable expenses is the improvement of gross contribution (revenue less variable expenses) by the financial services division with 31%.
Fixed expenses (excluding incentive payments) increased by 7% due to the cost relating to the companys investment in its brand and distribution network and the realignment of the asset management division. The realignment of the asset management division included an incentive scheme linked to the performance of the unit trust portfolios. The results of the newly implemented incentive scheme are evidenced in the increased revenue generated by this division. These incentive payments and other incentives in the Group contributed to the higher expenses.
The Group reports an operating profit of R 2.2 million for the financial year under review. The impairment of the investment in an associate and the losses from associates decreased the operating profit. The operating profit was enhanced by higher investment income on surplus funds and the re-measurement of liabilities.
Net tangible assets per share are reported at 72.38 cents (2012: 59.94 cents). The increase in the net tangible assets per share is mainly due to the increase in cash and cash equivalents as a result of cash generated by operations and the market growth of the surplus cash investment. The cash generated by operations was utilised by investment activities as detailed in the cash flow statement. Cash and cash equivalents represent 67% (2012: 66%) of the net tangible assets.
Cash of R 6.6 million (2012: R 1.3 million) was generated from operations for the 12 months ended 31 August 2013 and the reduction in working capital increased cash and cash equivalents by a further R 5.2 million. Interest earned contributed R 1.3 million to the cash flow. Tax paid reduced cash by R 4.4 million. The cash utilised for investment activities relates mainly to the acquisition of financial advisory client bases, enterprise development investment and loans to Marion Technologies (Pty) Ltd. This reduced cash by R 5.3 million.
Operating overview
In 2013 Efficient Advise, our financial planning business, grew its advisor base from 36 to 53 financial planners. Whilst over the past few years we invested in establishing the infrastructure to support the growth of this division, we are now experiencing the expected growth in advisor numbers, revenue and assets under advice. We expect this division to continue growing from strength to strength.
Efficient Select, our asset management business, delivered excellent investment results for clients in 2013. This contributed to good financial performance. The investment management team were rewarded with a further Raging Bull award this past financial year. The focus going forward will remain on growing assets under management through delivery of above average investment performance for clients. Product innovation, such as the launch of the Efficient Worldwide Multi Asset Income Fund with a distinct focus on investments in Africa, will remain a key focus in the coming year. The results of the collective investment management company were included in the results for Efficient Select for this financial year.
Efficient Invest, previously known as Efficient Transact, has been restructured to significantly strengthen the companys collective investment, consulting and multi-management capabilities. Efficient Invest will focus on the establishment and growth of two business entities, Boutique Collective Investments (BCI) and Boutique Investment Partners (BIP). BCI, previously Efficient Collective Investments, will offer asset administration to the boutique investment manager market whilst BIP will offer multi-management as well as asset consulting to both the retail and institutional market. The start-up cost associated with this business as well as the lead-time to revenue and profitability is expected to have an impact on the Group earnings for the next financial year. The bulk of the start-up costs are however directly linked to revenue. The impact of this will be short-term.
Cash Dividend
With the investment philosophy and processes imbedded in the operation of the asset management division and the successful completion of the financial services infrastructure development, the Group is well positioned to consider further investment opportunities. Various prospects are currently being investigated. For this reason the board of directors has decided not to declare any dividends but rather to utilise retained earnings to fund future investments.
Changes to the board
Joe Rosen was appointed as an independent non-executive director on 10 April 2013 and serves as the chairman of the Audit and Risk Committee, and as lead independent non-executive director. Abrie du Preez (and Thys du Preez as his alternate) joined the board as non-executive directors on 4 August 2013. Robert Walton joined the board on 12 August 2013 as an executive director tasked with the significant expansion of our asset administration business.
Basis of preparation
These summarised Group financial results for the year ended 31 August 2013 constitute a summary, prepared in accordance with the JSE Listings Requirements; the South African Companies Act (Act 71 of 2008) as amended; and the recognition and measurement requirements of International Financial Reporting Standards and the presentation and disclosure requirements of International Accounting Standard 34 and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council, of the Groups audited financial statements.
These summarised Group financial results do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 31 August 2013. The annual financial statements are available for inspection at the companys registered office.
This summarised report is extracted from audited information, but is not itself audited. The audited consolidated annual financial statements and unmodified report, as issued by KPMG Inc., are available for inspection at the companys registered office.
The summarised financial results were prepared by Anton de Klerk CA (SA), the Chief Financial Officer of Efficient.
Summarised statements of financial position as at 31 August
Group Company
2013 2012 2013 2012
R000 R000 R000 R000
Assets
Non-Current Assets
Property and equipment (Note 1) 658 649 215 289
Goodwill 23 703 23 494 - -
Intangible assets (Note 2) 17 821 20 784 - -
Investments 9 252 5 625 155 239 152 509
Equity accounted investments (Note 3) 6 313 6 865 97 2 934
Long-term receivable (Note 4) 1 518 2 902 - 895
Deferred tax 1 344 256 828 168
60 609 60 575 156 379 156 795
Current Assets
Related party loans (Note 10) - - 19 912 26 396
Trade and other receivables 8 565 9 583 965 840
Cash and cash equivalents 19 260 15 861 5 048 589
Short-term portion of
long-term
receivables (Note 4) 915 1 042 - 494
Tax receivable 302 19 37 36
29 042 26 505 25 962 28 355
Total Assets 89 651 87 080 182 341 185 150
Equity and Liability
Equity
Share capital
and share premium (Note 5) 58 657 58 657 171 862 171 862
Treasury shares (149) (149) - -
Accumulated income 12 453 9 933 6 578 8 777
Fair-value-adjustment
reserve 65 39 - -
Equity attributable to
equity holders of
the parent 71 026 68 480 178 440 180 639
Non-controlling interest (13) (44) - -
Total Equity 71 013 68 436 178 440 180 639
Non-Current Liabilities
Long-term liabilities (Note 6) 715 2 298 - 1 898
Deferred tax 3 217 4 854 - -
3 932 7 152 - 1 898
Current Liabilities
Related party loans (Note 10) - - 1 205 -
Trade and other payables 13 460 9 615 2 696 2 613
Short-term portion of
long-term liabilities (Note 6) 482 1 250 - -
Tax payable 764 627 - -
14 706 11 492 3 901 2 613
Total Liabilities 18 638 18 644 3 901 4 511
Total Equity
and Liabilities 89 651 87 080 182 341 185 150
Net asset value
per share (cent) 174.25 169.59
Net tangible asset
value per share (cent) 72.38 59.94
Summarised statements of comprehensive income for the year ended 31 August 2013
Group Company
2013 2012 2013 2012
R000 R000 R000 R000
Revenue 79 012 55 433 12 117 11 758
Operating expenses (76 772) (58 516) (15 785) (13 133)
Operating profit/(loss) 2 240 (3 083) (3 668) (1 375)
Dividends received 88 - 88 -
Finance income 1 284 1 537 318 815
Finance cost (12) (26) - -
Profit on sale of equipment 60 436 60 4
Other income/(expenses) (3) (3) - 1
Realised fair value
adjustment of available-
for-sale financial asset 51 6 - -
Realised fair value
adjustment of investment
designated at fair value
through profit or loss - 241 - -
Unrealised fair value
adjustment of investment
designated at fair value
through profit or loss 1 301 285 1 286 285
Re-measurement
of liabilities 2 222 316 1 898 316
Re-measurement of
loan to associate 500 - - -
Impairment of investment
in associates (Note 7) (2 837) (6 010) (2 841) (6 010)
Share of losses
from associates (1 091) (1 983) - -
Profit/(loss)
before taxation 3 803 (8 284) (2 859) (5 964)
Taxation (1 302) (147) 660 (60)
Profit/(Loss) for the year 2 501 (8 431) (2 199) (6 024)
Other comprehensive income:
Items that may be reclassified
subsequently to profit or loss 26 42 - -
Realised fair value
adjustment of available-
for-sale financial assets (51) (6) - -
Unrealised fair value
adjustment of available-
for-sale financial assets 77 48 - -
Total comprehensive
income/(loss) for the year 2 527 (8 389) (2 199) (6 024)
Profit/(loss) for the
year attributable to:
Equity holders of
the parent 2 520 (8 407) (2 199) (6 024)
Non-controlling interest (19) (24) - -
2 501 (8 431) (2 199) (6 024)
Total comprehensive
income/(loss) for the
year attributable to:
Equity holders
of the parent 2 546 (8 365) (2 199) (6 024)
Non-controlling interest (19) (24) - -
2 527 (8 389) (2 199) (6 024)
Earnings /(loss)
per share (cents) (Note 8) 6.18 (20.82)
Diluted earnings/(loss)
per share (cents) (Note 8) 6.18 (21.38)
Summarised statements of changes in equity for
the year ended 31 August 2013
Group Ordinary Non-
shares and Treasury controlling
share premium shares Interest
R000 R000 R000
Balance at 31 August 2011 57 221 (149) 69
Issue of share capital 1 436 - -
Acquisition of minority
interest in Efficient
Financial Services (Pty) Ltd - - (69)
Disposal of 20% of the
investment in Efficient
Asset Finance (Pty) Ltd - - (20)
Dividend paid - - -
Total comprehensive loss
for the year - - (24)
Balance at 31 August 2012 58 657 (149) (44)
Non-controlling interest
share of the issue of
share capital by Efficient
Asset Finance (Pty) Ltd - - 50
Total comprehensive
income for the year - - (19)
Balance at 31 August 2013 58 657 (149) (13)
Company
Balance at 31 August 2011 170 426 - -
Issue of Share Capital 1 436 - -
Dividend paid - - -
Total comprehensive
loss for the year - - -
Balance at 31 August 2012 171 862 - -
Total comprehensive loss
for the year - - -
Balance at 31 August 2013 171 862 - -
Group
Fair value
adjustment
for available
-for-sale-
Accumulated assets Total
income reserve Equity
R000 R000 R000
Balance at 31 August 2011 22 938 (3) 80 076
Issue of share capital - - 1 436
Acquisition of minority
interest in Efficient
Financial Services (Pty) Ltd (3 580) - (3 649)
Disposal of 20% of the
investment in Efficient
Asset Finance (Pty) Ltd 20 - -
Dividend paid (1 038) - (1 038)
Total comprehensive
loss for the year (8 407) 42 (8 389)
Balance at 31 August 2012 9 933 39 68 436
Non-controlling interest
share of the issue of
share capital by Efficient
Asset Finance (Pty) Ltd - - 50
Total comprehensive
income for the year 2 520 26 2 527
Balance at 31 August 2013 12 453 65 71 013
Company
Balance at 31 August 2011 15 839 - 186 265
Issue of Share Capital - - 1 436
Dividend paid (1 038) - (1 038)
Total comprehensive
loss for the year (6 024) - (6 024)
Balance at 31 August 2012 8 777 - 180 639
Total comprehensive
loss for the year (2 199) - (2 199)
Balance at 31 August 2013 6 578 - 178 440
Summarised statements of cash flows for the year ended 31 August 2013
Group Company
2013 2012 2013 2012
R000 R000 R000 R000
Cash flows from
operating activities
Cash receipts
from customers 80 030 50 987 3 499 11 602
Cash paid to suppliers
and employees (68 279) (49 746) (6 973) (11 444)
Cash generated by/
(utilised from)
operations 11 751 1 241 (3 474) 158
Finance income 1 280 1 537 314 815
Interest paid (12) (26) - -
Dividends paid - (1 038) - (1 038)
Taxation paid (4 398) (1 154) - (140)
Net cash inflow/(outflow)
from operating activities 8 621 560 (3 160) (205)
Cash flows from
investing activities
Acquisition of business(Note 9) (382) (2 453) - -
Long-term loan to associate (1 059) (2 265) - -
Decrease/(Increase) in
long-term receivable 123 (1 624) - (1 389)
Acquisition of investments (2 596) (5 000) (1 350) (5 000)
Decrease in
long-term liabilities (1 250) - - -
Proceeds on the disposal
of available-for-sale
financial assets 441 3 247 - -
Proceeds on disposal
of equipment 63 1 63 -
Acquisition of equipment (612) (1 675) (172) (2 212)
(5 272) (9 769) (1 459) (8 601)
Cash flows from financing
activities
Increase/(decrease) in
related party loans - - 9 078 (2 521)
Increase in subsidiary share
capital - non controlling
interest portion 50 - - -
50 - 9 078 (2 521)
Total cash and cash
equivalents movement
for the year 3 399 (9 209) 4 459 (11 327)
Total cash and cash
equivalents at the
beginning of year 15 861 25 070 589 11 916
Total cash and cash
equivalents at the end
of the year 19 260 15 861 5 048 589
Notes to the summarised annual financail statements for the year ended 31 August 2013
1. Property and Equipment
Group - Aug 2013
Opening Depre- Closing
Balance Disposals Additions ciation balance
R000 R000 R000 R000 R000
Furniture,
fixtures and
office
equipment 284 (3) 184 (214) 251
Computer
equipment 323 - 428 (355) 396
Leasehold
improvements 33 - - (28) 5
Other fixed
assets 9 - - (3) 6
Total 649 (3) 612 (600) 658
Group - Aug 2012
Opening Depre- Closing
Balance Disposals Additions ciation balance
R000 R000 R000 R000 R000
Furniture,
fixtures and
office
equipment 421 (2) 83 (218) 284
Computer
equipment 828 (1 545) 1 592 (552) 323
Leasehold
improvements 132 - - (99) 33
Other fixed
assets 37 - - (28) 9
Total 1 418 (1 547) 1 675 (897) 649
Company - Aug 2013
Opening Depre- Closing
Balance Disposals Additions ciation balance
R000 R000 R000 R000 R000
Furniture,
fixtures and
office
equipment 145 (3) 101 (110) 133
Computer
equipment 105 - 71 (103) 73
Leasehold
improvements 33 - - (28) 5
Other fixed
assets 6 - - (2) 4
Total 289 (3) 172 (243) 215
Company - Aug 2012
Opening Depre- Closing
Balance Disposals Additions ciation balance
R000 R000 R000 R000 R000
Furniture,
fixtures and
office
equipment 242 - 12 (109) 145
Computer
equipment 176 (2 121) 2 199 (149) 105
Leasehold
improvements 132 - - (99) 33
Other fixed
assets 7 - 1 (2) 6
Total 557 (2 121) 2 212 (359) 289
A register containing the information required by paragraph 25(3) of Part C of Chapter 2 of the Companies Regulations 2011 is available for inspection at the registered office of the company.
2. Intangible assets
Group - Aug 2013
Acquired
through
Opening business Amorti- Closing
Balance Disposals combination sation balance
R000 R000 R000 R000 R000
Trade names 973 - - (66) 907
Customer
contracts and
customer
relationships 19 811 - 746 (3 643) 16 914
Total 20 784 - 746 (3 709) 17 821
Group - Aug 2012
Acquired
through
Opening business Amorti- Closing
Balance Disposals combination sation balance
R000 R000 R000 R000 R000
Trade names 1 039 - - (66) 973
Customer
contracts and
customer
relationships 20 764 (2 320) 4 833 (3 466) 19 811
Total 21 803 (2 320) 4 833 (3 532) 20 784
The remaining useful life of the trade names are 14 years, and customer contracts and customer relationships are between 4 and 10 years.
3. Equity accounted investments
Name Country of Proportion
Incorporation of ownership Principal
interest Activities
C & A Financial
Services (Pty) Ltd RSA 49% Financial Services
Thebe Stockbroking
(Pty) Ltd RSA 25.1% Financial Services
Marion Technology
(Pty) Ltd RSA 50.0% IT Services
Efficient Financial
Services (Namibia)
(Pty) Ltd NAM 50.0% Financial Services
Group Company
2013 2012 2013 2012
R000 R000 R000 R000
The Equity accounted
investment consists of:
C & A Financial
Services (Pty) Ltd 487 434 - -
Thebe Stockbroking (Pty) Ltd - 2 837 - 2 841
Marion Technology (Pty) Ltd 5 826 3 594 - -
Efficient Financial
Services (Namibia)(Pty) Ltd - - 97 93
6 313 6 865 97 2 934
Reconciliation of Equity
accounted investments:
Opening balance 6 865 10 678 2 934 8 944
Loss for the year per
the statement of
comprehensive income (1 091) (1 908) - -
Loss for the year (1 131) (1 983) - -
Realisation of
inter-company profit
on sale of equipment
to associate 56 75 - -
Deferred tax on realisation
of inter-company profit on sale
of equipment to associate (16) - - -
Impairment of investment
in associate - Note 7 (2 837) (6 010) (2 841) (6 010)
Re-measurement of loan
to associate 500 - - -
Elimination of
inter-company profit on
sale of equipment
to associate - (285) - -
3 437 2 475 93 2 934
Long-term loan granted
and transferred from
long-term receivables to
associate during the year 2 876 4 390 4 -
Investment in associate 6 313 6 865 97 2 934
Group Company
2013 2012 2013 2012
R000 R000 R000 R000
4. Long-term receivable
4.1 Marion
Technology (Pty) Ltd - 1 389 - 1 389
The loan to Marion
Technologies forms part
of the acquisition of the
50% share in Marion Technology
(Pty) Ltd. This loan was
converted into a loan without
interest and repayment terms.
4.2 L Benade 2 433 2 555 - -
The loan to L Benade forms
part of the acquisition of
a customer base. This loan
is unsecured and repayable
in 41 monthly instalments of
R60 477,18. The loan bears
interest at prime rate
Less: Short-term portion of
long-term receivable (915) (1 042) - (494)
1 518 2 902 - 895
5. Share capital and
share premium
Authorised
361 350 000 ordinary
shares of R 0.00000277 each 1 1 1 1
Issued
40 759 533 ordinary shares
of R 0.00000277 each - - - -
Share premium 58 657 58 657 171 862 171 862
58 657 58 657 171 862 171 862
The Efficient Share Incentive Trust holds 67 934 shares in Efficient Group Ltd. These shares are disclosed as treasury shares.
Group Company
2013 2012 2013 2012
R000 R000 R000 R000
6. Long-term liabilities
6.1. Vendor finance 647 1 650 - -
This liability forms part
of the acquisition of two
customer bases. These loans
are unsecured and interest
free. There is one remaining
instalment of R400 000, payable
on 1 March 2014 on one customer
base, and three instalments
of R82 168 each, payable on
1 November 2013, 1 February 2015
and 1 August 2015, on the
second customer base.
Less: Short-term portion (482) (1 250) - -
165 400 - -
6.2 Shares to be issued - 1 898 - 1 898
This liability relates to
the acquisition of the
non-controlling share (10%)
held in Efficient Financial
Services (Pty) Ltd from the
managing director of that
company. The amount is
re-measured at the end of
each reporting period and
at the end of August 2013
the directors were of the
opinion that it is unlikely
that the performance conditions
will be met and therefore
6.3 Incentive liability 550 - - -
This liability relates to
a percentage of an incentive
scheme payment that is due to
the asset managers, that is
retained and payable after
an agreed employment period.
715 2 298 - 1 898
7. Impairment of
investment in associate
Thebe Stockbroking
(Pty) Ltd is a black
empowered stockbroking
company focusing on both
the retail (private wealth)
and institutional market.
The institutional division is
not profitable due to low
volumes and the research
cost required
2 837 6 010 2 841 6 010
Group
2013 2012
R000 R000
8. Earnings and diluted
earnings per share
Earnings and diluted earnings
per ordinary share
Weighted average number of
ordinary shares in issue
Number of shares in issue at
the end of the year 40 760 40 760
Less: Issue of ordinary
shares during the year - (821)
40 760 39 939
Add: Weighted average number
of ordinary shares issued
during the year - 441
Weighted average number
of ordinary shares in issue 40 760 40 380
Earnings/(loss) per share (cents) 6.18 (20.82)
Attributable earnings/(loss) 2 520 (8 407)
Weighted average number of
ordinary shares in issue 40 760 40 380
Diluted earnings/(loss) per share (cents) 6.18 (21.38)
Diluted earnings/(loss) 2 520 (8 635)
Weighted average number of
ordinary shares in issue 40 760 40 380
Diluted earnings /(loss) are
calculated as follows 2 520 (8 635)
Attributable earnings/(loss) 2 520 (8 407)
Less: Re-measurement of long-term liability - (316)
Add: Taxation on re-measurement
of long-term liability - 88
Headline earnings/(loss) per share (cents) 13.04 (6.71)
Headline earnings/(loss) 5 314 (2 711)
Weighted average number of
ordinary shares in issue 40 760 40 380
Diluted headline earnings /(loss)
per share (cents) 13.04 (7.28)
Diluted headline earnings/(loss) 5 314 (2 939)
Weighted average number of
ordinary shares in issue 40 760 40 380
Headline earnings/(loss) are
calculated as follows 5 314 (2 711)
Attributable earnings/(loss) 2 520 (8 407)
Add: Impairment of investment in associate 2 837 6 010
Less: Profit on disposal of Equipment (60) (436)
Add: Taxation of profit on disposal of Equipment 17 122
Diluted headline earnings /(loss)
are calculated as follows 5 314 (2 939)
Headline earnings/(loss) 5 314 (2 711)
Less: Re-measurement of liabilities - (316)
Add: Taxation on re-measurement
of long-term liability - 88
Group Company
2013 2012 2013 2012
R000 R000 R000 R000
9. Acquisition/(Disposal)
of business
During the period under
review the Group acquired
various financial advisory
customer bases from independent
financial advisers.
Acquisition: In the 2012
financial year, the Group
acquired various financial
advisory customer bases from
independent financial advisors
Gross trade receivables 1 140 643 - -
Equipment - 18 - -
Intangible assets 746 4 833 - -
Trade payables (912) (517) - -
Net assets acquired 974 4 977 - -
Goodwill 209 - - -
Less: Long-term liability
raised as part of the
purchase price (247) (1 650) - -
Less: Other creditors
raised as part of the
purchase price (345) (324) - -
Less: Deferred tax
raised on intangible
asset acquired (209) (550) - -
Cash paid on acquisition 382 2 453 - -
Disposal
Intangible assets - (2 320) - -
Long-term receivable - 2 320 - -
- - - -
Net cash paid on
acquisition of business 382 2 453 - -
Group Company
2013 2012 2013 2012
R000 R000 R000 R000
10. Loans to Related parties
Efficient Collective
Investments (Pty) Ltd - - 1 542 2 639
Efficient Select (Pty) Ltd - - - 11 960
Efficient Financial
Services (Pty) Ltd - - 9 230 6 118
Efficient Asset
Finance (Pty) Ltd - - 1 345 921
Efficient Share Incentive
Scheme Trust - - 149 149
Efficient Capital (Pty) Ltd - - 7 546 4 537
C & A Financial
Services (Pty) Ltd - - - 21
Efficient International
Investments (Pty) Ltd - - 100 51
- - 19 912 26 396
Loans from Related parties
Efficient Select (Pty) Ltd - - (1 205) -
Loans with Related parties
The loans are unsecured, bear
no interest and have no
fixed repayment terms.
Included in Equity accounted
investments is an amount of
R97 000 owed by Efficient
Financial Services (Namibia)
(Pty) Ltd and an amount of
R7 645 000 owed by Marion
Technology (Pty) Ltd to the
Group. Included in trade and
other receivables is an amount
of R9 023 owed by Marion
Technology (Pty) Ltd and
included in trade and other
payables an amount of R105 317
owed to Marion Technology (Pty)
Ltd.
10.1 Related party transactions
Rent paid - Midnight Storm
Investments 299 (Pty) Ltd 760 735 465 448
Administration fees
and rent received - Efficient
Select (Pty) Ltd - - 4 737 5 171
Administration fees
and rent received - Efficient
International
Investments (Pty) Ltd - - 515 474
Administration fees
and rent received -
Efficient Collective
Investments (Pty) Ltd - - 1 345 1 666
Administration fees
and rent received -
Efficient Financial
Services (Pty) Ltd - - 5 356 5 177
Information Technology
Services paid and software
development - Marion
Technology (Pty) Ltd 1 464 761 360 618
Group Company
2013 2012 2013 2012
R000 R000 R000 R000
Rent received from
Marion Technology (Pty) Ltd 32 13 - -
Interest received from
Marion Technology (Pty) Ltd 35 72 - -
Service fees received by
Efficient Collective
Investments (Pty) Ltd from:
- Efficient Worldwide
Flexible Fund 2 120 1 341 - -
- Efficient Active
Quant Fund 759 784 - -
- Efficient Balanced Fund 3 043 2 101 - -
- Efficient Equity
Fund of Funds 874 596 - -
- Efficient Flexible
Fund of Funds 1 959 1 781 - -
- Efficient Prudential
High Fund of Funds 2 099 1 661 - -
- Efficient Prudential
Low Fund of Funds 661 394 - -
- Efficient Prudential
Medium Fund of Funds 5 393 5 660 - -
- Efficient Equity Fund 3 479 2 029 - -
- Efficient Fixed Income Fund 1 875 628 - -
- Efficient Money Market Fund 226 256 - -
- Efficient Property Fund 785 1 487 - -
- Efficient Worldwide Multi
Asset Income Fund 215 - - -
10.2. Transactions with directors
and prescribed officers
(including their families)
Remuneration paid to executive
directors and prescribed officers
- Remuneration 11 997 9 800 7 165 5 693
- Share-Based Payment 79 (49) 45 (28)
12 076 9 751 7 210 5 665
Staff cost consist of
short-term benefits and
share-based payments.
Staff cost consist of short-term benefits and share-based payments. No long-term, post employment and termination benefits are payable to any employee.
11. Segmental Analysis
The group changed the reporting segments from the previous financial year by consolidating Asset Management and Asset administration and separatly disclosing Asset finance previously included in Financial services.
The group is organised into 3 main business segments:
1. Asset management and administration, and includes the following companies and divisions:
Efficient Select, Efficient Collective Investments and Efficient International Investments.
2. Financial Services, and includes the following companies:
Efficient Financial Services, C & A Financial Services and Thebe Stockbroking
3. Asset Finance, and includes the following company:
Efficient Asset Finance
2013
Asset
Management Finan-
& Admini- cial Asset
stration Services Finance Other Total
Revenue 60 912 30 000 2 848 (14 748) 79 012
- External 47 712 28 028 2 848 424 79 012
- Inter
- segment 13 200 1 972 - (15 172) -
Expenses 50 529 32 810 3 439 (10 008) 76 772
Interest paid 6 - - 6 12
Interest received 700 258 8 318 1 284
Net profit for
the year 8 145 (1 815) (96) (3 733) 2 501
Net Asset Value 31 934 (1 184) (66) 40 329 71 013
Assets 41 259 3 781 430 44 181 89 651
Liabilities 9 324 4 964 496 3 854 18 638
Depreciation
and amortisation 2 411 444 157 1 296 4 308
Share of profit/
(loss) from
associates - 53 - (1 144) (1 091)
2012 (Restated)
Asset
Management Finan-
& Admini- cial Asset
stration Services Finance Other Total
Revenue 45 097 18 641 992 (9 297) 55 433
- External 37 983 16 016 992 442 55 433
- Inter - segment 7 114 2 625 - (9 739) -
Expenses 43 968 14 260 1 164 (876) 58 516
Interest paid 26 - - - 26
Interest received 581 137 4 815 1 537
Net loss for
the year 1 603 (8 552) (121) (1 361) (8 431)
Net Asset Value 23 762 632 (220) 44 262 68 436
Assets 32 735 4 463 610 49 372 87 180
Liabilities 8 874 3 831 830 5 109 18 644
Depreciation
and amortisation 2 540 419 55 1 415 4 429
Share of losses
from associates - (1 489) - (494) (1 983)
Other consist of consolidation entries, amortisation of intangible
assets, Efficient Capital and Efficient Group Ltd.
Transactions between segments takes place at arms length.
12. Events after the reporting date
- Efficient Group Ltd sold its minority shareholding in Thebe Stockbroking (Pty) Ltd with effect from 1 October 2013 to Thebe Investment Corporation for a consideration of R527 100.
- On 12 September 2013 the company issued 1 997 661 shares @ R1.53 per share to senior employees as part of an executive share purchase scheme.
- On 11 November 2013 shareholders will be requested to approve a specific issue of 10 689 299 shares for cash at a price of R1.53 per share to Robert Walton, an executive director of Efficient Group.
CORPORATE INFORMATION
Non-Executive Directors
Dr S Booysen (Chairman), Z Cele*, L Taylor*, M Cassim, J Mabena, J Rosen*, A du Preez and T du Preez.
(*) Independent
Executive Directors
DD Roodt, H Weidhase, AT De Klerk and R Walton.
Registered and Business address
81 Dely Road, Hazelwood, 0081
Company Secretary
Adv Rudi Barnard
Sponsor
Java Capital
Reporting Accountants and Auditors
KPMG Inc.
Transfer Secretaries
Link Market Services South Africa (Pty) Ltd
6 November 2013
Date: 06/11/2013 04:27:00 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 
