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Abridged Audited Annual Financial Statements For The Year Ended 30 April 2015 And Notice Of Annual General Meeting
ELLIES HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2007/007084/06)
JSE share code: ELI ISIN: ZAE000103081
(“Ellies” or the “company”)
ABRIDGED AUDITED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2015 AND NOTICE
OF ANNUAL GENERAL MEETING
The following are abridged financial statements taken from the full audited financial statements of Ellies Holdings Limited
for the year ended 30 April 2015 and, where applicable, include amendments to the reviewed condensed consolidated
results released on SENS on Friday, 31 July 2015.
Condensed consolidated statement of financial position
Audited as at Reviewed as at Audited as at
30 April 2015 30 April 2015 30 April 2014
R'000 R'000 R'000
ASSETS
Non-current assets 248 631 248 631 481 424
Property, plant and equipment 23 254 23 254 190 536
- Land and buildings - - 96 155
- Other 23 254 23 254 94 381
Goodwill and other intangibles 173 407 173 407 264 066
Investment in associates - - 10 062
Other financial assets 1 144 1 144 4 264
Deferred taxation 50 826 50 826 12 496
-
Current assets 536 100 484 277 1 607 279
Inventories 15 824 15 824 737 412
Trade and other receivables A 132 584 80 761 395 666
Amounts due from contract customers 348 615 348 615 420 497
Taxation receivable 29 267 29 267 29 986
Bank and cash balances 9 810 9 810 23 718
Group disposals held for sale/distribution 948 784 1 000 607 -
Infrastructure segment 49 517 49 517 -
Consumer and property segment (Note 1) B 899 267 951 090 -
Total assets 1 733 515 1 733 515 2 088 703
EQUITY AND LIABILITIES
Total shareholders' interests 855 047 855 046 1 031 732
Stated capital 658 334 658 334 501 494
Non-distributable reserves (177 763) (177 763) (177 344)
Accumulated profits C 383 667 383 666 710 639
Equity attributable to equity holders of the parent 864 238 864 237 1 034 789
Non-controlling interests (9 191) (9 191) (3 057)
Non-current liabilities 96 210 96 210 30 397
Interest-bearing liabilities 95 260 95 260 1 034
Vendor loan payable - - 855
Minority shareholder loans - - 2 033
Deferred taxation 950 950 26 475
Current liabilities 211 294 159 472 1 026 574
Interest-bearing liabilities 210 210 395 488
- payable after 12 months - - 289 393
- payable within 12 months 210 210 106 095
Vendor loan payable 3 000 3 000 4 588
Shareholder loans payable 311 311 -
Trade and other payables D 186 915 135 093 467 807
Amounts due to contract customers 13 662 13 662 17 368
Provisions 7 116 7 116 9 954
Taxation payable 45 45 146
Shareholders for dividends 35 35 35
Bank overdrafts - - 131 188
Group disposals held for sale/distribution 570 964 622 787 -
Infrastructure segment 4 444 4 444 -
Consumer and property segment (Note 2) E 566 520 618 343 -
Total equity and liabilities 1 733 515 1 733 515 2 088 703
Supplementary information:
Shares in issue at end of year (number of shares) 453 057 398 453 057 398 303 505 691
Net asset value per share (cents) 190.76 190.76 340.95
Tangible net asset value per share (cents) 140.70 140.70 254.39
Note 1 - Assets: Consumer and property segment held for sale/distribution
Non-current assets 207 094 207 094
Property, plant and equipment 142 061 142 061
- Land and buildings 89 201 89 201
- Other 52 860 52 860
Goodwill and other intangible assets 53 672 53 672
Investment in associate 10 011 10 011
Deferred taxation 1 350 1 350
Current assets 692 173 743 996
Inventories 467 080 467 080
Trade and other receivables B 211 210 263 033
Taxation receivable 1 283 1 283
Bank and cash balances 12 600 12 600
899 267 951 090
Note 2 - Liabilities: Consumer and property segment held for
sale/distribution
Non-current liabilities 48 946 48 946
Interest-bearing liabilities 46 271 46 271
Minority shareholder loans 1 917 1 917
Deferred taxation 758 758
Current liabilities 517 574 569 397
Interest-bearing liabilities 154 796 154 796
Vendor loans payable 938 938
Trade and other payables E 230 673 282 496
Provisions 2 302 2 302
Taxation payable 47 47
Bank overdraft 128 818 128 818
566 520 618 343
Notes:
Ellies shareholders are referred to the announcement released on SENS on Friday, 31 July 2015 relating to the reviewed
condensed consolidated provisional results of the company for the year ended 30 April 2015. On finalisation of the
audited results, the reviewed results changed as follows:
# Line item Change Change description
Amount
R’000
A Trade and other receivables 51 823 Incorrect classification between continued and discontinued
operations
B Assets – Groups disposal held for (51 823) Incorrect classification between continued and discontinued
sale/distribution – consumer and operations
property segment /
Trade and other receivables
C Accumulated profits 1 Rounding errors
D Trade and other payables 51 822 Incorrect classification between continued and discontinued
operations
E Liabilities – Groups disposal held (51 823) Incorrect classification between continued and discontinued
for sale/distribution – consumer operations
and property segment /
Trade and other payables
Condensed consolidated statement of profit and loss and other comprehensive income
Audited Reviewed Audited
year ended year ended year ended **
30 April
2015 30 April 2015 30 April 2014
R'000 R'000 R'000
Revenue 316 366 316 366 531 676
(Loss) / profit before interest, taxation, depreciation
and amortisation ("EBITDA") (221 329) (221 329) 66 285
Depreciation (2 828) (2 828) (2 374)
Amortisation of intangibles (732) (732) (1 219)
Impairment of goodwill (34 428) (34 428) -
(Loss) / profit before interest and taxation (259 317) (259 317) 62 692
Interest received 10 198 10 198 7 599
Interest paid (36 815) (36 815) (25 356)
Net (loss) / profit before taxation ("PBT") (285 934) (285 934) 44 935
Taxation 34 971 34 971 (12 756)
(Loss) / profit for the year from continuing operations (250 963) (250 963) 32 179
Discontinued operations - Infrastructure segment (25 016) (25 016) (8 584)
Discontinued operations - Consumer and property segment
(Note 3) (57 127) (57 127) 47 926
(Loss) / profit for the year (333 106) (333 106) 71 521
0
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss
- Foreign currency translation reserve (419) (419) 972
Total comprehensive (loss) / income for the year (333 525) (333 525) 72 493
Attributable to:
Equity holders of the parent (326 972) (326 971) 74 840
Non-controlling interests (6 134) (6 135) (3 319)
Net (loss) / profit after tax (333 106) (333 106) 71 521
Attributable to:
Equity holders of the parent (327 391) (327 391) 75 812
Non-controlling interests (6 134) (6 134) (3 319)
Total comprehensive (loss) / income for the year (333 525) (333 525) 72 493
** Restated - Refer to discontinued operations note
Supplementary information:
Basic (loss) / earnings per share (cents) (92.33) (92.33) 24.66
- Infrastructure continuing operations (69.69) (69.69) 12.02
- Infrastructure discontinued operations (7.06) (7.06) (2.83)
- Consumer and property discontinued operations (15.58) (15.58) 15.47
Headline (loss) / earnings per share (cents) (81.34) (81.34) 23.46
- Infrastructure continuing operations (60.11) (60.11) 11.20
- Infrastructure discontinued operations (6.31) (6.31) (2.95)
- Consumer and property discontinued operations (14.92) (14.92) 15.21
Weighted average number of shares in issue 354 135 067 354 135 067 303 505 691
Shares in issue (number of shares):
- At end of the year 453 057 398 453 057 398 303 505 691
Ellies has no dilutionary instruments in issue.
Note 3 - Consumer and property segment discontinued operations
Revenue 1 388 932 1 388 932 1 379 326
(Loss) / profit before interest, taxation, depreciation
and amortisation ("EBITDA") (33 960) (33 960) 111 218
Depreciation (13 648) (13 648) (10 009)
Amortisation of intangibles (134) (134) (134)
Impairment of intangibles (2 551) (2 551) -
(Loss) / profit before interest and taxation ("PBIT") (50 293) (50 293) 101 075
Interest received 1 376 1 376 1 433
Interest paid (24 306) (24 306) (31 113)
Share of losses from associate (2 729) (2 729) (389)
Net (loss) / profit before taxation ("PBT") (75 952) (75 952) 71 006
Taxation 18 825 18 825 (23 080)
Net (loss) / profit after taxation ("PAT") (57 127) (57 127) 47 926
** Restated - Refer to discontinued operations note
Reconciliation of earnings to headline earnings
Audited Reviewed Audited
year ended year ended year ended **
30 April
2015 30 April 2015 30 April 2014
R'000 R'000 R'000
Net (loss) / profit for the year attributable to equity holders
of the parent (326 971) (326 971) 74 840
Adjusted for:
Loss / (profit) on sale of property, plant and equipment 2 682 2 682 (4 541)
- Infrastructure continuing operations (703) (703) (3 447)
- Infrastructure discontinued operations 3 719 3 719 -
- Consumer and property discontinued operations (334) (334) (1 094)
Impairment of intangibles - Consumer and property
discontinued operations 2 551 2 551 -
Impairment of goodwill - Infrastructure continuing
operations 34 428 34 428 -
Tax effect on adjustments (751) (751) 905
Headline earnings attributable to ordinary shareholders (288 061) (288 061) 71 204
** Restated - Refer to discontinued operations note
Condensed consolidated statement of cash flows
Audited Reviewed Audited
year ended year ended year ended
30 April 30 April 2015 30 April 2014
2015
R'000 R'000 R'000
Cash flows from operating activities F (52 067) (52 611) (170 071)
Cash (utilised by) / generated from operations (56 054) 6 610 (82 757)
Interest received (in cash) 1 995 3 349 2 018
Interest paid (in cash) (36 815) (61 038) (55 443)
Taxation paid (944) (1 532) (33 884)
Dividends paid - - (5)
Cash flows - continuing operations (91 818) (52 611) (170 071)
Cash flows - discontinued operations * 39 751 - -
Cash flows from investing activities G (2 333) (1 789) (38 942)
Cash flows - continuing operations 15 085 (1 789) (38 942)
Cash flows - discontinued operations * (17 418) - -
Cash flows from financing activities ** 55 462 55 462 110 449
Net increase / (decrease) in cash and cash equivalents 1 062 1 062 (98 564)
Cash and cash equivalents at the beginning of the year (107 470) (107 470) (8 906)
Cash and cash equivalents at the end of the year (106 408) (106 408) (107 470)
* The nature of group structure between continued and discontinued operations in the 2014 financial year end makes
it impracticable to calculate the split between the continued and discontinued operations.
** Due to the central treasury function within the group, it is considered impracticable to calculate the cash and cash
equivalents attribution to continued and discontinued operations for the 2015 financial period for financing activities,
as no separation basis existed in the prior periods.
Notes:
Ellies shareholders are referred to the announcement released on SENS on Friday, 31 July 2015 relating to the reviewed
condensed consolidated provisional results of the company for the year ended 30 April 2015. On finalisation of the
audited results, we have now split up the categories between continuing and discontinued operations, which has resulted
in changes to all the amounts. The changes between the categories from the reviewed results are as follows:
# Line item Change Change description
Amount
R’000
F Cash flow from operating activities 554 Incorrect classification of depreciation between cash flows
from operations and investing activities
G Cash flow from investing activities (554) Incorrect classification of depreciation between cash flows
from operations and investing activities
Condensed statement of changes in equity
Audited Reviewed Audited
year ended year ended year ended **
30 April
2015 30 April 2015 30 April 2014
R'000 R'000 R'000
Balance at the beginning of the year 1 031 732 1 031 732 958 467
Total comprehensive (losses) / income for the year C (333 525) (333 526) 72 493
Increase in stated capital through the issue of shares 156 840 156 840 -
Minority acquired as part of business combination - - 262
Change of shareholding in subsidiary - - 510
Balance at the end of the year C 855 047 855 046 1 031 732
** Restated - Refer to discontinued operations note
Segmental analysis
Audited Reviewed Audited
year ended year ended year ended **
30 April
2015 30 April 2015 30 April 2014
R'000 R'000 R'000
Revenue 1 803 150 1 803 150 2 106 089
Infrastructure 414 218 414 218 726 763
- Total - continued operations 316 408 316 408 533 488
- Total - discontinued operations 97 852 97 852 195 087
- Inter-segment (42) (42) (1 812)
Consumer goods - Discontinued operation 1 388 932 1 388 932 1 379 326
- Total 1 388 932 1 388 932 1 379 829
- Inter-segment - - (503)
Property division - Discontinued operation - - -
- Total 12 805 12 805 10 786
- Inter-segment (12 805) (12 805) (10 786)
Segmental profits / (losses) from operations
(Loss) / profit before interest and taxation, after losses
from associates (347 083) (347 083) 151 456
Infrastructure - Continued operation (258 785) (258 785) 61 882
Infrastructure - Discontinued operation (34 744) (34 744) (9 978)
Consumer goods - Discontinued operation (60 225) (60 225) 92 889
Property division - Discontinued operation 9 932 9 932 7 789
Other - Discontinued operation (2 729) (2 729) (389)
Holding company / consolidation (532) (532) (737)
Interest received 11 574 11 574 9 032
- Continuing operations 10 198 10 198 7 599
- Discontinued operations 1 376 1 376 1 433
Net finance costs (61 121) (61 121) (56 469)
Operating segments (52 416) (52 416) (48 376)
- Continuing operations (36 815) (36 815) (25 356)
- Discontinued operations (15 601) (15 601) (23 020)
Property division - Discontinued operations (8 622) (8 622) (7 872)
Deemed vendor interest - Discontinued operations (83) (83) (221)
(Loss) / profit before taxation (396 630) (396 630) 104 019
** Restated - Refer to discontinued operations note
Notes
Audited results for the year ended 30 April 2015
The results for the year ended 30 April 2015 have been audited by Grant Thornton Johannesburg and their unmodified
audit report is available for inspection at the company's registered office. The auditor’s report does not necessarily report
on all of the information contained in these abridged annual financial results. Shareholders are therefore advised that in
order to obtain a full understanding of the nature of the auditor’s engagement, they should obtain a copy of the auditor’s
report together with the accompanying annual financial statement from the issuer’s registered office. This summarised
report is extracted from the audited information but is not itself audited. The directors take full responsibility for the
preparation of the abridged annual financial results and for ensuring that the financial information has been correctly
extracted from the underlying audited annual financial statements.
Basis of preparation and accounting policies
The abridged annual financial statements for the year ended 30 April 2015 are prepared in accordance with the
requirements of the JSE Limited Listings Requirements for provisional reports and the requirements of the Companies Act
of South Africa. The Listings Requirements require provisional reports to be prepared in accordance with the framework
concepts and the measurement and recognition requirements of International Financial Reporting Standards (IFRS) and
the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements
as issued by Financial Reporting Standards Council and to also, as a minimum, contain the information required by IAS
34 Interim Financial Reporting.
Except for the company applying IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations, all accounting
policies applied in the preparation of these abridged annual financial statements are in terms of IFRS and are consistent
with those applied in the prior year.
The directors are not aware of any matters or circumstances arising subsequent to 30 April 2015 that require any
additional disclosure or adjustment to the financial statements, other than as disclosed in this announcement.
These abridged annual financial statements for the year ended 30 April 2015 have been reviewed by Grant Thornton,
who expressed an unmodified review conclusion thereon. 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 reviewed report. The
auditor’s reviewed report does not necessarily report on all the information contained in these financial results.
Shareholders are therefore advised that in order to obtain a full understanding of the nature of the auditor’s engagement
they should obtain a copy of the auditor’s report together with the accompanying financial information from the issuer’s
registered office. The directors take full responsibility for the preparation of these results and confirm that the financial
information has been correctly extracted from the underlying financial statements.
Discontinued operations and disposal groups held for sale / distribution
Following the group's announcement that it intends to unbundle and list its Consumer goods and property segments
separately, together with the Infrastructure segment having scaled down and shut most of its South African operation, the
results of these two operations have been reclassified to discontinued operations in the income statement and their
assets and liabilities reclassified to disposal groups held for sale/distribution in the statement of financial position.
The prior year interim and final numbers have been restated to show the Continuing and Discontinued operations
consistent with the above-mentioned split.
The disposal groups held for sale/distribution, as disclosed in the statement of financial position, relate to the assets and
liabilities of the group's consumer goods business and property operations.
Commentary
Introduction
Ellies Holdings Limited (‘Ellies’ or the ‘Company’ or the ‘Group’) is a leading South African manufacturer, wholesaler,
importer and distributor in diversified sectors servicing the local and African markets. The Group comprises two main
segments, namely Infrastructure and Consumer goods. Shareholders are referred to the numerous SENS
announcements released over the past year that dealt with the Company’s various capital raises, debt restructure with the
Company’s primary lender, The Standard Bank of South Africa Limited (‘Standard Bank’) and corporate restructure.
During the past year the company undertook two capital raisings in the form of a general issue of shares for cash in
November 2014 and a fully underwritten rights offer which concluded in January 2015. The general issue of shares
resulted in the Company issuing 45 000 000 Ellies ordinary shares at 110 cents per share to client funds managed by
Mazi Capital Proprietary Limited (‘Mazi Capital’). The rights offer was fully subscribed for by existing shareholders which
resulted in the Company issuing a further 104 551 707 Ellies ordinary shares at 110 cents per share. The number of
issued shares at year end as a result of these capital raises was 453 057 398. R100 million from these capital raises was
used to reduce the Company’s debt with Standard Bank, with the balance of the money used to fund working capital.
Prior to the finalising of the January 2015 rights offer, the Company together with its advisors had embarked on numerous
other short-term initiatives to further reduce the Standard Bank debt. Due to circumstance that were not within the
Company’s control, these initiatives failed and the Company was required to implement a further rights offer in order to
enter into an arrangement with Standard Bank, in terms of which the Company would be restructured into its two main
segments, being Consumer goods and Infrastructure and thereafter to be funded and operated separately. Subsequent to
the year-end, the Company launched a second rights offer of R200 million, which was partially underwritten to the extent
of R185 million (gross of underwriting costs). This second rights offer concluded with the Company issuing 167 100 837
shares at 110 cents per share. The number of issued shares post the second rights offer will be 620 158 235. An amount
of R150 million from this capital raise was used to further reduce the company’s debts, with the balance of the money
used to fund working capital. With the successful launch of the rights offer, the Company was able to complete its
corporate and debt restructure as announced on SENS on 4 May 2015, with retrospective effect from 1 May 2015.
The Company together with its advisors have set up a Separation Committee, comprising an equal number of non-
executives and executives directors, with the view that a separate listing of the Ellies consumer business and the
Megatron infrastructure business will allow for increased focus on their respective core operations. It will also enable the
Ellies consumer business and the Megatron infrastructure business to access different sources of funding, better suited to
their respective needs and cash flow profiles. The unbundling and simultaneous separate listing of Ellies consumer will
also provide greater investor flexibility. The committee will explore all the options available in order to ensure that a
separate listing is done timeously and in a manner that in maximises value for shareholders. As a result of the proposed
separate listing that is in process, the company has applied IFRS 5 – Non-current Assets Held for Sale and Discontinued
Operations. As a consequence of the application of this standard, the results of the Ellies consumer goods business and
property division have been reclassified as discontinued operations in the statement of comprehensive income and its
assets and liabilities reclassified as disposal groups held for sale/distribution in the statement of financial position.
Overview
The past year has been extremely challenging for the Company. Ellies’ financial performance has been negatively
affected by difficult trading conditions, severe liquidity constraints and higher interest charges.
With the various capital raising exercises completed, the Company will continue to focus on improving its liquidity by
disposing of its property portfolio and further reductions of its consumer inventory holdings. In addition the infrastructure
segment is anticipating that the outstanding tax refund and certain large outstanding debtors will be recovered in the short
term.
The financial results of the current year include the following items (pre-tax) that are not in the course of normal business
operations:
Infrastructure division:
1. Impairment of goodwill of R34.4 million relating to Botjheng Water;
2. Deferred tax assets from the prior year reversed of approximately R9.1 million and current year losses of
approximately R27.5 million not raised;
3. Losses of approximately R25 million, including retrenchment costs of R3.1 million, from the scaled down South
African operations;
4. Impairments to accounts and construction receivables of approximately R84.2 million, including an onerous
provision raised of R4.1 million; and
5. Other retrenchment costs paid of approximately R1.6 million.
Consumer division:
1. Inventory impairments mainly resulting from cancelled projects of R63.8 million;
2. Impairment of intangibles of R2.6 million relating to the Carbon Credit Programme;
Were it not for these items, the Loss per share and Headline loss per share for the current financial year would be
36 cents and 35 cents respectively.
The Infrastructure division
The continuing operations of the infrastructure division performed poorly in the current period, which resulted in a loss of
R258.8 million (2014 profit: R61.9 million) on Revenue of R316.4 million (2014: R533.5 million). Revenue was severely
impacted by the ability to execute in a timely manner due to liquidity constraints, resulting in both the increase of time-
related costs as well as the imposition of delay damages. Due to the fixed cost structure of the company, operating profit
was severely impacted by the reduced revenue. A number of once off and non-cash items as detailed below had a further
negative impact on the final results. In the period ending 30 April 2015, the infrastructure division implemented its strategy
of reducing its exposure to manufacturing in South Africa. The operations earmarked for discontinuation had their
employees retrenched and a sale of assets and inventory was undertaken. The impact of this exercise resulted in a once
off cost of R25 million including retrenchment costs of R 3.1 million. This exercise has reduced the fixed cost structure of
the infrastructure division by approximately R30 million per annum going forward.
The operating structure of Botjheng Water was brought in line with the philosophy of the infrastructure division going
forward, being a reduction in overhead and an increased focus on outsourcing. The company made a loss before tax of
R10.6 million, including retrenchment costs of R1.6 million. Due to the continued losses, the goodwill was fully impaired
and both past and current deferred tax assets reversed.
At year-end management elected not to raise various deferred tax assets of R44.2 million. The provisional tax losses
remain intact and the recognition of these assets will be subject to positive future trading results.
With reduced fixed costs and improved liquidity, the division will be focused on improving operating margin in the future.
The Democratic Republic of Congo, Nigeria and Ivory Coast will continue to be significant revenue drivers in the next
period, as the previously reported order book remains intact.
The Consumer goods division
Even though trading conditions remain strained with the consumer under pressure, Ellies Electronics has been trading
positively in the new financial year. The main factors that have contributed towards the positive trading are the reduced
overhead costs with a lower staff count and increased efficiencies within the organisation. The division has looked hard at
reducing handling costs and making products more competitive in an environment where the consumer is more price
conscious. Having said this, the division will not compromise on the quality of our products. We remain focused on
maximising gain with our distribution network and wide customer base.
Load shedding has had a positive impact on the division, with our locally produced inverter trolley in great demand. The
inverter and batteries are married in a convenient DIY unit that is manufactured and assembled in our engineering
division. These trollies together with other backup power and lighting products are selling well. These include small
generators and larger inverter units. Ellies has embarked on a marketing campaign through TV, radio social and digital
media in order to promote these products and help educate the consumer.
The sale of MultiChoice equipment and related products has been slower in the first quarter compared to previous years.
MultiChoice remains an important partner to Ellies and we believe that with their promotion and technology advances
made in new products, there will be growth in the future. In December, Platco resolved to subsidise the OVHD set top
boxes and saw a dramatic increase in sales. This has helped in reducing our inventory to more acceptable levels.
We have seen a positive movement in the drive to digital migration. In December Universal Service and Access Agency
of South Africa (‘USAASA’) issued tenders for the supply and installation of product for the digital migration. At present,
Ellies has been approved for two of the tenders being the manufacture and supply of satellite dishes, terrestrial antennas
and accessories. We however do not know neither the quantum, nor the timing of the start of supply but remain positive
with the progress seen in the last seven months. Ellies has also had product approved for MultiChoice’s DTT programme
for both South Africa and Africa. We are becoming more proactive in promoting the product. Our lighting division
continues to find momentum albeit at a slower pace than first envisaged. We have partnered with new technology players
in the market and hope to be releasing product that is both technologically advanced and competitive in the near future.
Ellies remains dedicated to the training and upskilling of our independent customer base with training in various
disciplines happening weekly. We hope to arm these SMMEs with skills that will help them grow their businesses and
ready them for the digital migration and convergence. The consumer division will continue to reshape itself in line with
market demands and trends, and continues to remain relevant and ahead of the technology curve. We pride ourselves on
our product, service and brand. With our increased efficiencies, lower cost and motivated staff we will continue to be a
significant brand and company in South Africa.
Dividend policy
The dividend policy will be reviewed periodically taking into account prevailing circumstances and future cash
requirements. In view of the Company’s financial position, no dividend is proposed at this stage.
Appreciation
The directors and management would like to thank our dedicated staff for their hard work during these challenging times
and recognise and appreciate their efforts. We continue to appreciate our customers, business partners, advisors,
suppliers and most importantly shareholders.
Notice of the annual general meeting
Shareholders are advised that the company’s integrated annual report, incorporating the audited annual financial
statements for the year ended 30 April 2015, is available on the Ellies Holdings website, www.elliesholdings.com.
The abridged audited financial information for the financial year ended 30 April 2015, together with the notice of annual
general meeting was dispatched to shareholders today, 30 October 2015.
The company’s annual general meeting (“AGM”) will be held at 12h00 on Tuesday, 1 December 2015, at the offices of the
company, 94 Eloff Street Ext, Village Deep, Johannesburg.
The last day to trade in order to be eligible to participate in and vote at the annual general meeting is Friday,
14 November 2014 and the record date for voting purposes is Friday, 20 November 2015.
Approval of financial statements
The financial statements have been approved by the board and abridged for purposes of this report. Grant Thornton has
signed an unqualified audit opinion on the financial statements. Both the financial statements and the auditors' report are
available for inspection at the company's registered office.
This abridged report is extracted from audited information, but is not itself audited.
The auditors' report does not necessarily cover all of the information contained in this announcement. Shareholders are
therefore advised that in order to obtain a full understanding of the nature of the auditors' work they should obtain a copy
of the report together with the accompanying financial information from the registered office of the company.
By order of the board
ER Salkow WMG Samson
Chairman CEO
30 October 2015
Directors:
Executive Directors: Lead independent non-executive Director:
ER Salkow (Chairman) OD Fortuin
WMG Samson (Chief executive officer)
IM Lipworth (Chief financial officer) (Appointed 1 August 2014) Independent non-executive Directors:
RH Berkman FS Mkhize
RE Otto S Goldberg (Appointed 21 November 2014)
Non-executive Directors:
MR Goodford
MJ Kuscus (Appointed 1 June 2015)
The following directors resigned during the period: MF Levitt (1 August 2014); AC Brooking (31 August 2014) and
M Moodley (31 October 2014).
13
Registered office:
94 Eloff Street Ext, Village Deep, Johannesburg, 2001
(PO Box 57076, Springfield, 2137)
Sponsor:
Java Capital
Auditors:
Grant Thornton
Company secretary:
CIS Company Secretaries (Pty) Ltd
Transfer secretaries:
Link Market Services South Africa (Pty) Ltd
Date: 30/10/2015 04:57:00 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.
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