Wrap Text
Reviewed Provisional Report for the year ended 31 December 2014
ECSPONENT LIMITED
(Previously John Daniel Holdings Limited)
Incorporated in the Republic of South Africa
Registration number: 1998/013215/06
JSE Code: ECS - ISIN: ZAE000179594
(“the Company” or “Ecsponent”)
Provisional Report for Ecsponent Limited for the year ended 31 December 2014
The Board of Directors are pleased to advise shareholders of Ecsponent Limited of the
significantly improved results for the 2014 financial year.
Ecsponent increased its strategic focus further investing in financial services companies which have
clear African and Global market application. In particular, these companies are required to produce
products or provide services with high barriers to entry and high gross profit margins. Directors envisage
that this expansion strategy, which remained in place throughout the 2014 financial period, will continue
indefinitely.
RESULTS HIGHLIGHTS
The Group showed sustained improvement in it’s performance for the period under review. The
expansion strategy, substantially the portfolio of financial services assets.
Total revenue generated by the Group’s financial services operations amounted to R23.4 million for the
year ended 31 December 2014 compared to R8.7 million for the 31 December 2013 financial year.
Group financial service revenue amounted to 40.8% of total revenue for the 2014 financial year.
Below are other highlights from the Group’s operations reflected in the 2014 results:
- Total revenue increased by 53.9% to R57.4 million for the December 2014 financial period
compared to R37.3 million for the December 2013 financial year;
- Total assets increased by 148.5% to R150.6 million at 31 December 2014 compared to R60.6
million at 31 December 2013; and
- After tax profit, before other comprehensive income, increased to R5.2 million for the year ended
31 December 2014 compared to profit of R1.0 million for the year ended 31 December 2013, an
improvement of 420.0%.
Funding for the expansion strategy was secured through the registration of Ecsponent’s Listed
Preference Share programme enabling the company raise capital to fund its investments on an ongoing
basis. The initial market uptake has been very encouraging.
OPERATIONAL REVIEW
Group overview
Below is an overview of the Group’s operations during the 2014 financial year.
Financial Services
The core of the current Financial Services division of Ecsponent is the provision of unsecured employee
benefits finance, vendor finance for secured transactions as well as secured loans to Small and Medium
Enterprises (SME) which satisfy the Groups credit criteria.
As mentioned the Group’s financial services operations expanded significantly during the financial year
through a combination of acquisitions and organic growth. The operations expanded to Botswana and
Swaziland during 2014 and the business model for Ecsponent Zambia has also been established. The
Board announced on 26 February 2015, subsequent to the financial period under review, that the Group
secured a deposit-taking license from the Bank of Zambia.
The Financial Services operations reported a 168.9% increase in revenue to R23.4 million for the 12
months ended 31 December 2014 compared to the R8.7 million for the comparative period. The total
value of advances at 31 December 2014 increased by 291.0% to R103.1 million compared to R26.4
million at the end of the 2013 financial year.
The demand for credit remains buoyant and the Financial Services operation is well positioned to
maximise opportunities. The business currently provides credit for storage of stem cells and unsecured
credit in various retail group schemes. The feasibility of additional credit products are investigated on
an ongoing basis.
The primary costs in the Financial Services business is the cost of capital required to fund the growth
of the unsecured loan book. Management continue to seek alternative funding options to reduce funding
costs, thereby improving profitability.
Collections
The Group acquired Sanceda Collections Services (Sanceda) on 31 July 2014. Sanceda is a collections
agency which provides specialised collection services to corporates.
Sanceda generated R7.2 million of the Group’s revenue in the 5 months since its acquisition date.
The collections operations provided the Group access to specialised skills and infrastructure to
maximise the recovery against defaulting debtors within other operating subsidiaries. The Financial
Services operations continue to seek opportunities to acquire business which can be profitably
leveraged through the Group’s collections infrastructure. The collection of third party debt remains the
core focus of the collections business.
Biotechnology
The Group’s Biotechnology operations maintained its market share and contributed R20.1 million. Total
revenue for the December 2013 financial year amounted to R20.6 million.
The Cryo-Save brand (“Cryo-Save SA”) continued to improve its penetration within the South African
market and as a result substantially improved its market share during the period.
The Group obtained the rights for Salveo in South Africa in order to further entrench the two
shareholders dominance of the local market.
Salveo Swiss Technologies is a Geneva based biotechnology group which specialises in regenerative
medicine and the cryogenic preservation of umbilical cord stem cells. The group is a leader in its field
and is represented in many countries across Europe. In addition the business has been awarded FACT
accreditation, the highest level of accreditation for a laboratory of its kind.
Salveo deploys different protocols and processes to the Cryo-Save standards and is based on the Swiss
technologies. In addition the shareholders have decided to not invest in a local laboratory but to rather
sub contract the processing and cryogenic storage operation to the state of the art Cryo-Save South
Africa laboratory. The result is a lower cost model without compromising on quality and efficacy and
the business will pass on these savings to the clients.
PROSPECTS
Key elements of the on-going expansion strategy are the continued growth of subsidiaries through
product and market extension, aggressive trading and cost reduction as well as the acquisition of new
subsidiaries which are profit generating and aligned with the Group’s strategy. The abovementioned
approach is aimed at developing a robust and complementary financial services Group which provide
sustainable returns.
RESULTS
Presented below are the reviewed results for the year ended 31 December 2014.
Reviewed Condensed Consolidated Statement of Financial Position as at 31 December 2014
31 December 31 December
2014 2013
Reviewed Audited
Group Group
R’000 R’000
ASSETS
Non-current assets
Property, plant and equipment 6 134 4 716
Intangible assets 1 132 706
Other financial assets 54 406 13 666
Deferred tax 13 197 11 138
Other non-current receivables 2 042 -
Total current assets 73 732 26 426
Assets of discontinued operations held for sale - 4 046
TOTAL ASSETS 150 643 60 698
EQUITY AND LIABILITIES
Equity 56 667 23 773
Non-controlling interest (3 795) (1 240)
Non-current liabilities
Other financial liabilities 49 029 18 798
Deferred tax 1 628 768
Total current liabilities 47 114 18 599
TOTAL EQUITY AND LIABILITIES 150 643 60 698
Reviewed Condensed Consolidated Statement of Comprehensive Income for the year ended
31 December 2014
Year ended Year ended
31 December 31 December
2014 2013
Reviewed Audited
Group Group
R’000 R’000
Revenue 57 396 37 317
Cost of sales (9 046) (8 215)
GROSS PROFIT 48 350 29 102
Other income 478 75
Operating expenses (37 729) (21 206)
OPERATING PROFIT 11 099 7 971
Fair value adjustment – preference shares 598 -
Net finance costs (5 214) (1 818)
Bargain Purchase 166 -
PROFIT BEFORE TAXATION 6 650 6 153
Taxation (2 601) (1 725)
PROFIT FROM CONTINUING OPERATIONS 4 049 4 428
Profit / (Loss) from discontinued operations 1 182 (3 395)
PROFIT FOR THE PERIOD 5 231 1 033
Other comprehensive income (70) -
TOTAL COMPREHENSIVE INCOME 5 161 1 033
Loss attributable to non-controlling interest 1 575 1 092
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO
ORDINARY SHAREHOLDERS 6 736 2 125
Profit attributable to owners of the parent from:
Continuing operations 5 609 5 520
Discontinued operations 1 182 (3 395)
6 791 2 125
Total comprehensive income attributable to:
Owners of the parent 6 736 2 125
Non-controlling interest (1 575) (1 092)
5 161 1 033
Basic and fully diluted earnings per share (cents) from 0.983 1.243
continuing operations attributable to equity holders of the
parent
Basic and fully diluted earnings / (loss) per share (cents) 0.207 (0.764)
from discontinued operations attributable to equity holders of
the parent
Basic and fully diluted earnings per share (cents) attributable 1.190 0.479
to equity holders of the parent
Reviewed Condensed Consolidated Statement of Changes in Equity for the year ended 31 December 2014
Share Non-distributeable Foreign Common Accumulated Non-controlling Total
capital reserve currency control reserve loss interest equity
translation
reserve
R’000 R’000 R’000 R’000 R’000 R’000 R’000
Balance at 1 January 55 226 3 912 - - (37 421) (193) 21 524
2013
Total comprehensive - - - - 2 125 (1 092) 1 033
profit for the year
Acquisition of non- - (70) - - - 45 (25)
controlling interest
Balance at 1 January 55 226 3 842 - - (35 296) (1 240) 22 532
2014
Total comprehensive - - (55) - 6 791 (1 575) 5 161
profit for the year
Profit for the year - - - - 6 791 (1 560) 5 231
Other - - (55) - (15) (70)
comprehensive
income
- - - - - 62 845
Issue of shares 62 845
Business - - - (36 687) - (980) (37 667)
combinations
Balance at 31 118 071 3 842 (55) (36 687) (28 505) (3 795) 52 871
December 2014
Reviewed Condensed Consolidated Cash Flow Statement for the 12 months ended 31
December 2014
Year ended Year ended
31 December 31 December
2014 2013
Reviewed Group Audited Group
R’000 R’000
NET CASH INFLOW FROM OPERATING ACTIVITIES 3 076 7 880
NET CASH OUTFLOW FROM INVESTING ACTIVITIES (63 487) (7 208)
NET CASH (OUTFLOW) / INFLOW FROM FINANCING 52 576 (23)
ACTIVITIES
Movement in cash and cash equivalents for the period (7 835) 649
Cash and cash equivalents at the beginning of the period 885 236
Cash and cash equivalents at the end of the period (6 950) 885
Notes to the Reviewed Condensed Financial Statements for the year ended 31 December 2014
ACCOUNTING POLICIES AND BASIS OF PREPARATION OF RESULTS
The condensed consolidated financial statements have been prepared in accordance with IAS 34 –
Interim Financial Reporting in accordance with the accounting policies that comply with International
Financial Reporting Standards (IFRS), the SAICA Financial Reporting Guides and in the manner
required by the Companies Act and the JSE Listings Requirements. The principle accounting policies
applied in the preparation of the condensed consolidated financial statements are in terms of IFRS
and are consistent with those applied in the previous consolidated annual financial statements, except
for the adoption of new standards which became effective during the year as well as the common
control accounting policy, refer below, to account for related party acquisitions during the financial
year.
The results of the Company, were prepared under supervision of the Group’s financial director, Mr D
van der Merwe CA (SA).
These condensed consolidated financial statements for the year ended 31 December 2014 have been
reviewed by Nexia SAB&T, who expressed an unmodified review conclusion. A copy of the auditor’s
review report is available for inspection at the company’s registered office together with the financial
statements identified in the auditor’s report.
ADOPTION ON NEW ACCOUNTING POLICY – COMMON CONTROL RESERVE
IFRS 3 (Business Combinations) specifies excludes from its scope transactions that involve a
combination of entities or businesses that are under common control. The related party acquisitions
referred to in the notes below are deemed to be common control transactions. The Group adopted the
common control accounting policy below to account for these transactions.
The Group applies merger accounting for all its common control transactions which requires that the
assets and liabilities of the purchased business be incorporated at the consolidated book value (by the
ultimate parent) and the difference between the purchase consideration and the book value of the
assets and liabilities be recorded in equity as a common control reserve. The financial statements of
the purchaser incorporate the combined companies’ results and cash flows.
REVIEW OF RESULTS AND FINANCIAL POSITION
The 31 December 2014 reviewed consolidated financial results represents the trading results of the
corporate head office and its subsidiaries, which are active in the financial services, biotechnology and
debt collection markets. The Group disposed of its operations in the agricultural packaging market at
the end of January 2014.
The Group’s expansion strategy and the acquisitions of growth businesses resulted in significant growth
in the Group’s asset base reflected in the 146.3% increase in total assets compared to the December
2013 financial year.
The benefit of the acquisitions on the Group’s profitability is not as dramatic as these companies where
considered to be growth businesses that are in their early development stages. These businesses are
expected to be significantly more profitable in future periods as they will be able to leverage the
investment made in the 2014 financial year.
Group revenue from continuing operations increased to R57.4 million for the 12 months ended 31
December 2014. A 53.9% increase in revenue compared to the R37.3 million achieved for the
comparative 12 months ended 31 December 2013.
The Group continues to increase its investment in operating structures and processes required to
underpin continued operational growth. In addition, the Group’s credit committee has tightened its
provisioning policies governing unsecured lending activities, resulting in an increase in provisions.
These aspects have led to the increased operating expenses for the year compared to the comparative
period.
The strategy of combining aggressive management of existing subsidiaries and further strategic
acquisitions is aimed at ensuring the future sustainability of the Group.
EARNINGS AND FULLY DILUTED EARNINGS PER SHARE
BASIC AND HEADLINE EARNINGS
Basic earnings 6 791 2 125
Headline earnings 5 334 2 335
Basic and fully diluted earnings per share (cents) attributable 1.19 0.48
to equity holders of the parent
Headline and fully diluted headline earnings per share 0.94 0.53
(cents) attributable to equity holders of the parent
Number of shares in issue 901 588 049 444 131 678
Weighted average number of shares 570 498 813 444 131 678
RECONCILIATION BETWEEN BASIC EARNINGS AND
HEADLINE EARNINGS
IAS 33 Basic earnings 6 791 2 125
IFRS 5 Gain on disposal of discontinued operation (1 326) -
IFRS 3 Bargain purchase (135) -
IAS 16 (Profit) / Loss on disposal of property plant and (3) 147
equipment
IAS 16 Impairment of property, plant and equipment 7 63
Headline earnings 5 334 2 335
ASSET VALUE PER SHARE
Net asset value 56 667 23 773
Net tangible asset value 55 535 23 067
Net asset value per share (cents) 6.29 5.35
Net tangible asset value per share (cents) 6.16 5.19
ACQUISITIONS AND DISPOSALS
The board is actively investigating acquisition opportunities aimed at improving earnings and cash
generation for the Group.
There were no other acquisitions or disposals during the year ended 31 December 2014, other than
listed below.
Related Party Acquisitions
The acquisitions of growth businesses from Ecsponent Capital (RF) Limited and other related parties,
entered into by the Group on 5 March 2014, was approved by shareholders in a general meeting held
on 25 July 2014.
Related Party acquisition of EFS
Ecsponent Financial Services (Pty) Ltd (formerly Escalator Financial Services) (“EFS”) is registered
with the regulator as a licensed service provider. EFS provides intermediary services between financial
services product providers and the general public.
EFS recruits and manages qualified advisors to market financial products in terms of the FSB
regulations and has established an accomplished broker network with a recurring client base.
An important pillar of the repositioned Group strategy is to obtain access to key FSB regulated licenses
allowing the Group control over important elements of its channel to market.
Related Party acquisition of Sanceda
Sanceda Collection Services (Pty) Ltd (“Sanceda”), registered with the Council of Debt Collectors, is a
collection agency which provides specialised collection services to corporates. Collections are call
centre based and Sanceda has established the management and infrastructure to simultaneously
collect on a large volume of current or delinquent debtor files.
Sanceda’s expertise includes tracing of defaulters, repayment and contract agreement, debit order and
related collection management and legal pursuance of defaulters should this be necessary.
The acquisition of Sanceda provides the Group with the skills and infrastructure to collect against its
acquired debt books as well as defaulting debtors within its other operating subsidiaries.
Related Party acquisition of Ecsponent Botswana
Ecsponent Limited (formerly Escalator Investment Holdings) incorporated in Botswana (“Ecsponent
Botswana”) provides secured funding to selected financial service companies and credit to small,
medium and micro enterprises. To fund its operations Ecsponent Botswana raises capital through the
issuance of various classes of preference shares via a prospectus offer to qualifying members of the
public and institutions.
Fair value of the related party assets acquired and liabilities assumed are as follows:
EFS Sanceda Ecsponent Total
Botswana
R’000 R’000 R’000 R’000
Assets
Other financial assets 3 317 145 20 176 23 638
Deferred tax 1 105 - 2 555 3 660
Property, plant and equipment 229 - 653 882
Current assets 5 519 - 524
Bank 203 1 5 125 5 329
TOTAL ASSETS 4 859 665 28 509 34 033
Liabilities
Other financial liabilities - 6 208 22 574 28 782
Current liabilities 478 972 3 905 5 355
Bank - - 11 085 11 085
TOTAL LIABILITIES 478 7 180 37 564 45 222
Total identifiable assets 4 381 (6 515) (9 055) (11 189)
Non-Controlling Interest in - - 1 502 1 502
identifiable assets
Purchase consideration 15 000 7 000 5 000 27 000
Transfer to common control 10 619 13 515 12 553 36 687
reserve
Acquisition of Komo Finance
The Group acquired a 51% stake in Komo Finance (Pty) Ltd (“Komo”) effective on 30 June 2014 for
R350 000. Komo, a registered credit provider, is a specialist financier providing employee benefit
funding managed by payroll facilities through a network of select employers.
The acquisition of Komo unlocked significant synergies within the existing unsecured payroll advances
operations and substantially increased both the employer and employee base. The combined
R36.3 million book asset allows the operations to effectively leverage operational resources. In addition,
the Komo management team have amassed significant experience and knowledge within the industry
which will complement the existing operational management.
Fair value of the Komo assets acquired and liabilities assumed are as follows:
R’000
Assets
Other financial assets 21 862
Deferred tax 158
Property, plant and equipment 111
Other current assets 38
TOTAL ASSETS 22 169
Liabilities
Other financial liabilities 17 731
Other current liabilities 236
Bank 3 190
TOTAL LIABILITIES 21 157
Total identifiable assets 1 012
Non-Controlling Interest in identifiable assets 496
Purchase consideration 350
Bargain purchase 166
Disposal of the SO2 gas sheet manufacturing business
In line with the repositioning strategy highlighted above the Group disposed of its SO2 gas sheet
manufacturing business and related assets as a going concern for R6.3 million. The manufacturing
operations were regarded as being non-strategic to the future growth plans of the Group.
Vinguard shareholders approved the going concern disposal in terms of Section 112 of the Companies
Act, 2008 in a general meeting held on 24 January 2014, and the effective date of the transaction
determined to be 31 January 2014. The purchase consideration comprised R6.3 million for the going
concern assets.
OTHER FINANCIAL ASSETS
The other financial asset category incorporates the benefits provided to employees against payroll
facilities contracts which increased by 392.3% compared to the comparative period. Below is detail
regarding the Group’s other financial assets:
Reviewed Audited
Group Group
31 December 31 December
2014 2013
R ‘000 R ‘000
At fair value through profit and loss – designated
Acquired debt 3 241 2 543
Loans and receivables
Employee benefit loans 64 321 12 878
Secured SME loans 34 921 6 979
Ecsponent Capital RF Limited 3 817 6 500
TOTAL OTHER FINANCIAL ASSETS 106 300 28 900
Total included in non-current assets 54 406 13 666
Total included in current assets 51 894 15 234
PREFERENCE SHARE CAPITAL
Ecsponent’s business model requires funding for both the existing business growth and to pursue
further acquisitions. Funding is deployed in the growth of financial services assets and the acquisition
of new assets which contribute to the growth strategy. Preference Shares are considered an optimal
source of funding for these on-going business needs and accordingly the Company has registered a
R5 billion Preference Share Programme (“the Programme”) under which Ecsponent may, from time to
time, issue multiple Tranches of Preference Shares. The Programme was approved by the JSE on 8
September 2014 and by 31 December 2014 Ecsponent had received investments of R33.25 million
from the initial offer on 29 September 2014.
OTHER FINANCIAL LIABILITIES
In terms of IFRS the preference share capital is classified as debt and disclosed as an other financial
liability in the Group’s statement of Financial Position at 31 December 2014. Consequently the
preference share dividends are classified as a funding costs and disclosed as such in the Statement of
Profit and Loss and Other Comprehensive Income for the year ended 31 December 2014.
Reviewed Audited
Group Group
31 December 31 December
2014 2013
R ‘000 R ‘000
At fair value through profit and loss – designated
Collection Guarantee 1 308 -
Loans and receivables
Preference share liability 48 522 -
Experite NV Group 5 201 4 935
Ecsponent Capital (RF) Limited - 18 798
Komo Funding (Pty) Ltd 4 271 -
Other 712 100
TOTAL OTHER FINANCIAL ASSETS 60 014 23 833
Total included in non-current assets 49 029 18 798
Total included in current assets 10 985 5 035
REVIEWED CONDENSED SEGMENTAL INFORMATION
The segments identified are based on the operational and financial information reviewed by
management for performance assessment and resource allocation. There has been no change in the
basis of operational segmentation or in the basis of measurement of segment profit or loss since the
last annual financial statements.
The continued expansion of the Group has resulted in the need for geographic segmentation in
addition to the operational segmentation.
Year ended 31 December 2014
Operating Segment Revenue Operating profit /
(loss)
R’000
R’ 000
Financial Services 23 415 3 196
Biotechnology 20 081 (1 853)
Collections 7 166 (370)
Agricultural packaging – discontinued operation 576 959
Corporate 37 065 27 946
Eliminations (29 577) (17 267)
Transfer to discontinued operations (1 330) (1 512)
Group total 57 396 11 099
Geographic Segment Revenue Operating profit /
(loss)
R’ 000 R’000
South Africa 77 169 23 150
Botswana 8 356 5 722
Swaziland 2 403 917
Namibia 374 89
Eliminations (29 577) (17 267)
Transfer to discontinued operations (1 330) (1 512)
Group total 57 396 11 099
Year ended 31 December 2013
Segment Revenue Operating profit /
(loss)
R’ 000 R’000
Financial Services 8 724 4 643
Biotechnology 20 611 (310)
Agricultural packaging – discontinued operation 4 138 (3 373)
Corporate 11 350 784
Eliminations (3 368) 2 803
Transfer to discontinued operations (4 138) 3 423
Group total 37 317 7 970
EVENTS AFTER THE REPORTING PERIOD
The directors are not aware of any material event which occurred after the reporting date and up to the
date of this report requiring disclosure, other than the matter listed below:
The Company announced on 26 February 2015 that its subsidiary in Zambia secured a deposit-taking
license from the Bank of Zambia. The Ecsponent Zambia business plan will be aggressively rolled out
over the balance of the 2015 financial year.
CORPORATE ACTIONS
During the financial year the Group successfully implemented the following significant corporate
actions, discussed in more detail throughout this announcement:
? Disposal of the SO2 gas sheet manufacturing business;
? Group’s name change to Ecsponent Limited to reflect the repositioning of the Group’s strategy;
? Acquisition of Komo Finance a specialist financier providing employee benefit finance;
? Related party acquisitions of growth businesses from the Group’s major shareholder, Ecsponent
Capital (RF) Limited;
? Registration of a R5 billion preference share programme to provide an ongoing source of funding
for the Group’s growth businesses;
? R100 million rights offer which raised equity funding of R62.8 million through a combination of
shareholders following their rights and the underwriter taking up the R45 million underwritten
portion;
? Establishment of a R36.4 million convertible funding facility; and
? Creation of an employee share incentive scheme.
Rights offer and convertible loan
On 5 March 2014, the company entered into an underwriting agreement with Ecsponent Capital RF
Limited, its controlling shareholder, whereby the major shareholder partially underwrote the rights
offer of R100 million at an issue price of 14 cents per share to the value of R45 million. In addition, the
shareholder provided a funding facility to the Group of R36.4 million. The funding facility is convertible
into ordinary shares in ECS at the 14 cents rights offer price.
At 31 December 2014 Ecsponent Limited had not made use of funding via the loan facility.
The directors took up a total of 12 040 612 ordinary shares as a result of exercising their rights under
the Rights Offer.
Name change
Shareholders approved the change in name of the company to “Ecsponent Limited” by way of a
Section 60 shareholder round robin special resolution. The special resolution has been lodged for
registration at CIPC.
In accordance with the Companies Act, 2008 and the JSE Listings Requirements, for a period of not
less than one year, the former name “John Daniel Holdings Limited” will be reflected in brackets on all
Ecsponent’s documents of title beneath the new name.
SHARE CAPITAL
Shareholders approved the increase of the company’s authorised share capital from 1 500 000 000
no par value shares to 2 000 000 000 no par value shares at the AGM held on 25 July 2014.
The shareholders approved an increase in the authorised share capital to 1 trillion no par value
shares in a general meeting held on 24 October 2014.
The following share issues took place during the year increasing the issued share capital to
901 588 049 at 31 December 2014 from 444 131 678 at 31 December 2013:
? 454 456 371 shares were taken up through the rights offer and issued on 22 September 2014; and
? 3 000 000 shares were issued on 30 June 2014 in terms of the directors’ general authority to issue
shares for cash.
DIVIDENDS
No ordinary dividends were declared and no ordinary dividend is proposed for the year.
Ecsponent Limited has issued three classes of Preference Shares with the following dividend terms:
? Class A – 10% fixed rate monthly dividend;
? Class B – 0% monthly dividend; and
? Class C – prime plus 4% floating rate monthly dividend.
Preference Share dividends of R246 188 were declared and paid by Ecsponent Limited, the Group
holding company, for the period ended 31 December 2014. The dividends are classified as finance cost
and included in the net finance cost expense in the statement of profit and loss and comprehensive
income.
CONTINGENCIES
The directors are not aware of any material contingent liability which existed at the reporting date and
up to the date of this report requiring disclosure.
DIRECTOR CHANGES
No changes in the directorate took place during the year.
COMPANY SECRETARY
No changes in the company secretary took place during the year.
AUDITORS
The company informed ordinary and preference shareholders of the appointment of Nexia SAB&T as
the Ecsponent Group’s auditors with effect from 17 October 2014.
SPONSOR
Questco (Pty) Ltd (“Questco”) was appointed as the company’s Debt Sponsor following the
restructure of the Group. The board announced the appointment of Questco as the company’s
Sponsor as well, with effect from 1 September 2014.
GOING CONCERN
The directors are of the opinion that the Group will continue as a going concern for the foreseeable
future due to the continued financial support of certain parties to the Group and in particular, by the
Company to its subsidiaries.
For and on behalf of the Board
TP Gregory
Pretoria
31 March 2015
Directors: RJ Connellan* (Chairman), TP Gregory (Chief Executive Officer), DP van der Merwe
(Financial Director), E Engelbrecht (Non-Executive), KA Rayner*, BR Topham*. (* Independent Non-
Executives)
Company Secretary: Timbavati Business Consultants represented by HJ van der Merwe
Registered Office: Acacia House, Green Hill Village Office Park, on Lynnwood, Cnr Botterklapper and
Nentabos Street, The Willows, Pretoria East, PO Box 39660, Garsfontein East 0060
Transfer Secretaries: Link Market Services South Africa (Pty) Ltd, 13th Floor Rennie House, 19
Ameshoff Street, Braamfontein 2000, PO Box 4844, Johannesburg 2000
Auditors: Nexia SAB&T Inc.
Sponsor: Questco (Pty) Ltd
Date: 01/04/2015 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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