Wrap Text
Abridged Audited Consolidated Financial Statements and Notice of Annual General Meeting
PBT Group Limited
(Formerly Prescient Limited)
(Incorporated in the Republic of South Africa)
(Registration number: 1936/008278/06)
Share code: PBG
ISIN: ZAE000227781
("PBT Group" or "the Company" or "the Group")
ABRIDGED AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
AND NOTICE OF ANNUAL GENERAL MEETING
Further to the Condensed Consolidated Provisional Financial Statements for the year ended 31 March
2017 ("the provisional results") released on the Stock Exchange News Service of the JSE Limited
("SENS") on 30 June 2017, shareholders are advised that the Integrated Report will be distributed to
shareholders on 07 August 2017. In addition, the full Annual Financial Statements, Integrated Report
and Notice of Annual General Meeting ("AGM") are available on the PBT Group website at
www.pbtgroup.co.za/integrated-reports/.
Since the publication of the aforementioned provisional results, the following changes have been made
to the audited financial statements for the year ended 31 March 2017:
(All numbers are expressed in thousands)
- In the Segment Report, the group table, 2017 columns of the South Africa and Middle East/Africa
segments, the segments’ assets and liabilities were incorrectly allocated and have now been
reclassified. The numbers included in the continuing and discontinued operations tables are
correct and no changes have been made.
The segment assets and liabilities for the South Africa segment have changed from R179 149 and
(R24 799) to R88 039 and (R20 475) respectively. The segment assets and liabilities for the Middle
East/Africa segment have changed from R40 and (R58 268) to R91 149 and (R62 593) respectively.
No effect on the total column of the group table for segment assets and liabilities.
- On the Statement of Financial Position at 31 March 2017, a reclassification was made on loans
payable between current liabilities and non-current liabilities. Previously the loans payable
amount was R42 911 under non-current liabilities. This changed to R7 348 under non-current
liabilities and R35 563 under current liabilities.
The total liabilities are unchanged at R104 923.
BUSINESS ACTIVITIES AND GROUP RESULTS
During the period under review, PBT Group Limited (previously Prescient Limited) shareholders approved
a transaction with Stellar Capital Partners Limited and received a distribution to an amount of R1.428
billion from Prescient Holdings Proprietary Limited ("Prescient Holdings"), resulting in the effective
disposal of Prescient Holdings. Prescient Limited was renamed to PBT Group Limited to better reflect
the ongoing operations and strategic vision of the Company. The pro rata income and expenses associated
with Prescient Holdings are disclosed as profits from discontinued operations in the audited abridged
consolidated statement of profit or loss and other comprehensive income. The comparative profit from
Prescient Holdings for the prior year has been restated to reflect as profits from discontinued operations
in the comparative period. The corresponding earnings per share and headline earnings per share have
also been reflected as a split between continuing and discontinued operations. Total loss after tax from
continuing operations after the impairment of goodwill (R31.6 million) for the period was R23.6 million
(March 2016: profit of R19.7 million) with profit before tax for continuing operations being R1.8 million
(March 2016: profit of R40 million). Headline earnings per share was 5.93 cents per share (March 2016:
6.79 cents per share) while headline earnings per share for continuing operations was 0.16 cents per
share (March 2016: 0.98 cents per share) and headline earnings per share for discontinued operations
was 5.77 cents per share (March 2016: 5.81 cents per share). The weighted average number of shares in issue
for the 12 months ended 31 March 2017 was 1 619 927 367 (March 2016: 1 600 156 235).
SOUTH AFRICA AND AUSTRALIA
The South African and Australian operations continue to operate well despite the generally challenging
environment. The demand for our services in these areas remains strong and resulted in satisfactory
growth and profits.
MIDDLE EAST AND AFRICA
Challenges in the Middle East and Africa ("MEA") segment of our business resulted in a loss after tax of
R51.8 million for the region. The negative payment culture resulted in very high finance charges and a
bad debt write-off of R18.4 million. A change in the tax law resulted in withholding tax ("WHT") of R16.5
million being expensed as additional tax in the current financial year which resulted in an exceptionally
high tax charge. This will be a recurring expense in future periods. WHT is deducted from payments to
the Company from certain MEA countries. South Africa has Double Tax Agreements with most of these
countries which disallows the deduction of WHT. The WHT was allowed as a credit against the South
African Tax in terms of Section 6quin of the Income Tax Act. This Section has, however, been deleted
and for all tax years commencing on or after 1 January 2016 no concession is allowed. As of this date a
deduction can be claimed against the income in terms of Section 6quat(1C) of the Income Tax Act.
Although WHT of R14.9 million relating to previous periods is available to be offset against future tax
payable, we felt it prudent to impair this asset and expense it through profit or loss.
PROSPECTS FOR THE PBT GROUP
Since PBT Group’s inception it has focused exclusively on the data management market and, as a result,
it finds itself ideally positioned to maximise the current and future potential revenue from this sector.
The key to PBT Group’s success has been its early decision to specialise rather than diversify. The decision
to focus on this sector was a calculated risk that was taken as a result of experience and the foresight
that data management will consistently outperform the growth figures compared to the rest of the
Information and Communication Technology sector. The focused approach has resulted in PBT Group
acquiring and retaining highly specialised skills in the field. With more than 550 consultants PBT Group
has the capability to successfully service the end-to-end data management landscape. PBT Group has a
solid business strategy that allows for rapid change without compromising on the quality of the service
that is delivered to its clients. The strategic objectives that underpin PBT Group’s ongoing success are:
Be product agnostic
In a market of consolidation and technical overload, the decision to be product agnostic has proven to
be the right one. Not only does it ensure that PBT Group is trusted by its clients as an objective partner,
but it also allows for the consultant adjustment of its technology focus based on what it views as the
best of breed, without the pressure from technology vendors to stay loyal to a brand that might no longer
be delivering on client expectations. At the same time, it also allows for successful exposure to all
industries.
Specialise in data
Connectivity is the number one reason for an explosion in data. It started off with the internet, but has
truly gained momentum with the introduction of social media, mobile and Internet of Things (millions of
devices, from cars to fridges, are connected and continuously generate petabytes of data). Data has
therefore become central to every single aspect of running a business, from recruitment to procurement,
from finance to strategy to planning. Customer engagement and retention is no longer possible without
near real-time access to data. PBT Group acquired the skills and has the experience to capitalise on this
by successfully transforming data into business value for its clients.
Worldwide expansion
The skills that PBT Group acquired and developed over the last two decades are of world-class standards.
This presented an opportunity to compete internationally. PBT Group has been operating successfully
and profitably in Australia since 2005 and established a fully-fledged operation in Melbourne in 2008. In
the MEA region, PBT Group is following the MTN footprint across 22 countries. The change in the
treatment of WHT deductions in some of these countries impacted profitable trading severely and will
result in downscaling of this operation in the future, considering client requirements. Technological
advancement has paved the way for the exporting of our skills. To this end, we have established a small-
scale operation in the United Kingdom and will continue to expand our services in this market.
Big data
Big data originated in an attempt to differentiate it from other data. Big data is, however, becoming the
norm rather than the exception and it might soon become "just data" again. A large component of PBT
Group’s consulting base has been part of the industry that gave rise to the term big data. The
telecommunication companies were the first to generate millions of lines of data every second. They
allowed social media to get a foothold and in the process opened the door for terabytes of unstructured
data in the form of videos, pictures and text to be uploaded continuously. They were also the first to
realise the potential of analysing this data. Connectivity is what defined big data. Being part of this
process allowed PBT Group to gain valuable experience and is assisting greatly in all current big data
initiatives.
Cloud
With the advent of big data, the move to cloud was inevitable. More and more data required scalable
infrastructure which was not financially viable within a decentralised model. Cloud allows business to
focus on core differentiators whilst allowing standard components to be outsourced. PBT Group has
aligned itself with all the cloud players and is, at the same time, exploring providing analytics as a service
in the cloud.
Business analytics
The ultimate objective of obtaining, cleaning and structuring data is to analyse it in a way that provides
actionable insight that can drive an increase in bottom line returns for companies. PBT Group has a solid
understanding of this concept and has aligned itself with developing technologies in this space. These
include, but are not limited to, advanced analytics, machine learning, cognitive computing, data lakes
and geographical information systems.
Train and mentor potential candidates
PBT Group married two components that are very specific to the South African market, namely skill
shortage and empowerment, and devised a programme more than a decade ago that has seen hundreds
of eager youngsters being skilled up and successfully deployed in the industry as business intelligence
consultants and analysts. The success of this programme is unprecedented and the talent that has been
uncovered has been tremendous. The programme has no equal in the market and the quality of the
resulting skills are world-class.
Best of breed methodologies
Even though PBT Group has remained product agnostic it is constantly aligning itself with best of breed
methodologies. PBT Group has established competency centres within the Company that refine
methodologies such as Ralph Kimball and agile continuously, to ensure that it aligns with new
developments in the market. PBT Group provides leadership in the data management space and has
positioned itself well to meet, or even exceed, the growth potential that is projected for this sector. It
has shown consistent growth through tough economic times, because it proactively adjusted its strategy
to cater for challenges and to benefit from an extremely volatile market.
GOVERNANCE
PBT Group remains committed to sound corporate governance principles, including integrity,
transparency and accountability and we subscribe to the Code of Corporate Practices and Conduct as set
out in King IV. Heather Sonn resigned in July 2016 in order to focus on her demanding business interests
and Michael Buckham resigned in February 2017 due to an opportunity that lured him away. Ronell van
Rooyen, Keneilwe Moloko and Zane Meyer resigned on 17 March 2017 and the new Board members were
appointed in their stead. Pierre de Wet, Tony Taylor and Cheree Dyers were appointed on 17 March 2017
and Arthur Winkler was appointed on 17 May 2017.
DIVIDEND
No dividend from normal commercial operations has been declared for the six months ended 31 March
2017. Bi-annually, the board of directors ("the Board") consider the payment of a dividend, taking into
account prevailing circumstances and future cash and capital requirements of the Group in order to
determine the appropriate dividend in respect of a particular financial reporting period.
CAPITAL REDUCTION DISTRIBUTION
In accordance with the SENS announcement released on 26 May 2017, an excess pay-out was made post
year-end to the PBT Group by the Prescient Holdings Group. The cash portion of this excess pay-out
amounted to R26.2 million and will be paid out to shareholders as announced on SENS on 3 August 2017.
ACKNOWLEDGEMENTS
We would like to take this opportunity to thank our clients for their support, our staff, management and
our Board for their hard work and input during this interesting but challenging year. We would especially
like to thank Heather Sonn, who resigned on 31 July 2016, Michael Buckham who resigned in February
2017, Keneilwe Moloko, Zane Meyer and Ronell van Rooyen, who resigned on 17 March 2017, for their
incredible contribution to the Group during the preceding years. At the same time, we wish to welcome
Pierre de Wet, who was appointed as Executive Director and CEO on 17 March 2017, Tony Taylor, who
was appointed as Lead Independent Non-Executive Director on 17 March 2017, Cheree Dyers who was
appointed as Independent Non-Executive Director on 17 March 2017 and Arthur Winkler
who was appointed as Independent Non-Executive Director on 17 May 2017. We would also like to thank
our shareholders for their continued support during a time of change within the Group. 2017 was certainly
an interesting year and so will 2018 be in forming the base for our future.
Abridged Audited Consolidated Financial Statements
for the year ended 31 March 2017
ABRIDGED AUDITED CONSOLIDATED
STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
For the year ended 31 March 2017
2017 2016
Notes R'000 R'000
Total income 612 741 543 136
Services fees 572 287 538 913
Interest and dividend income 17 999 907
Other investment income 22 455 3 316
Cost of information management services (447 985) (405 573)
Operating expenses (128 899) (94 868)
Impairment of goodwill 3 (31 645) -
Share-based payment expense (462) (455)
Profit from operations 3 750 42 240
Other income 4 819 2 494
Finance costs (6 724) (4 694)
Profit before tax 1 845 40 040
Income tax expense 5 (25 449) (20 387)
(Loss)/Profit from continuing operations (23 604) 19 653
Discontinued operations
Profit from discontinued operations 2 1 229 633 99 439
Profit for the year 1 206 029 119 092
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign currency translation differences - foreign operations (8 183) 17 398
Tax on other comprehensive income - -
Other comprehensive (loss)/income for the year, net of tax (8 183) 17 398
Total comprehensive income for the year 1 197 846 136 490
Profit attributable to:
Owners of the Company 1 203 543 109 004
Non-controlling interests 2 486 10 088
Profit for the year 1 206 029 119 092
Total comprehensive income attributable to:
Owners of the Company 1 195 360 123 489
Non-controlling interests 2 486 13 001
Total comprehensive income for the year 1 197 846 136 490
Earnings per share (cents)*
Continuing operations 1 (1.53) 0.88
Discontinued operations 1 76.99 5.81
Diluted earnings per share (cents)
Continuing operations 1 (1.53) 0.88
Discontinued operations 1 76.99 5.81
Headline earning per share (cents)*
Continuing operations 1 0.16 0.98
Discontinued operations 1 5.77 5.81
Diluted headline earnings per share (cents)
Continuing operations 1 0.16 0.98
Discontinued operations 1 5.77 5.81
* Refer to note 5.
ABRIDGED AUDITED CONSOLIDATED
STATEMENT OF FINANCIAL POSITION
AT 31 March 2017
2017 2016
Notes R'000 R'000
ASSETS
Non-current assets 385 825 11 667 621
Property and equipment 23 831 29 241
Investment property 33 430 35 728
Goodwill and intangible assets 3 286 215 397 960
Deferred tax asset 7 353 14 197
Long-term loans and other receivables 2 581 54 186
Investment in equity-accounted investees 289 9 658
Financial assets at fair value through profit or loss 32 126 151 439
Linked investments backing policyholder funds - 10 975 212
Current assets 291 547 1 077 824
Inventory 19 787 35 688
Trade and other receivables 4 227 668 214 959
Amounts owing by clearing houses - 192 777
Amounts owing by clients - 429 186
Taxation receivable - 13 623
Cash and cash equivalents 44 092 191 591
Total assets 677 372 12 745 445
EQUITY
Stated capital 144 015 667 660
Reserves 5 400 7 066
Retained income 410 600 152 451
Total equity attributable to owners of the company 560 015 827 177
Non-controlling interests 12 434 24 064
Total equity 572 449 851 241
LIABILITIES
Non-current liabilities 13 336 11 018 427
Deferred tax liability 5 988 13 548
Policyholder investment contract liabilities - 10 974 330
Loans payable 7 348 30 549
Current liabilities 91 587 875 777
Trade and other payables 40 108 106 393
Amounts owing to clearing houses - 16 134
Amounts owing to clients - 604 668
Current tax payable 7 835 9 377
Loans payable 35 563 44 126
Bank overdraft 8 081 95 079
Total liabilities 104 923 11 894 204
Total equity and liabilities 677 372 12 745 445
ABRIDGED AUDITED CONSOLIDATED
STATEMENT OF CHANGES IN EQUITY
For the year ended 31 March 2017
Share- Non-
Trans- based control-
Stated lation Treasury payment Retained ling Total
R'000 capital reserve shares reserve income Total interest equity
Balance at 1 April 2015 664 702 6 414 (14 502) 801 138 578 795 993 14 139 810 132
Total comprehensive income for the
year
Profit for the year - - - - 109 004 109 004 10 088 119 092
Total other comprehensive income - 14 485 - - - 14 485 2 913 17 398
Total comprehensive income for the
year - 14 485 - - 109 004 123 489 13 001 136 490
Transactions with owners recognise
directly in equity
Contributions by and distributions to
owners of the Company
Treasury shares purchased - - (2 074) - - (2 074) - (2 074)
Equity-settled share-based payments - - - 1 942 - 1 942 - 1 942
Dividends declared during the year - - - - (95 131) (95 131) (2 548) (97 679)
Issue of ordinary shares 2 958 - - - - 2 958 - 2 958
Total contributions by and distributions
to owners of the Company 2 958 - (2 074) 1 942 (95 131) (92 305) (2 548) (94 853)
Changes in ownership interests in
subsidiaries
Acquisition of NCI without a change
in control - - - - - - 5 950 5 950
Loss of control - - - - - - (6 478) (6 478)
Total changes in ownership interests in
subsidiaries - - - - - - (528) (528)
Total transactions with owners of the
Company 2 958 - (2 074) 1 942 (95 131) (92 305) (3 076) (95 381)
Balance at 31 March 2016 667 660 20 899 (16 576) 2 743 152 451 827 177 24 064 851 241
Share- Non-
Trans- based control-
Stated lation Treasury payment Retained ling Total
R'000 capital reserve shares reserve* income Total interest equity
Balance at 1 April 2016 667 660 20 899 (16 576) 2 743 152 451 827 177 24 064 851 241
Total comprehensive income for the
year
Profit for the year - - - - 1 203 543 1 203 543 2 486 1 206 029
Total other comprehensive income - (8 183) - - - (8 183) - (8 183)
Total comprehensive income for the
year - (8 183) - - 1 203 543 1 195 360 2 486 1 197 846
Transactions with owners recognised
directly in equity
Contributions by and distributions to
owners of the Company
Treasury shares sold - - 9 260 - 11 166 20 426 - 20 426
Equity-settled share-based payments - - - 1 680 - 1 680 - 1 680
Termination of forfeitable share plan* - - - (4 423) 4 423 - - -
Dividends declared during the year - - - - (69 276) (69 276) (3 430) (72 706)
Capital distribution** (469 853) - - - (957 969) (1 427 822) - (1 427 822)
Adjustment to reflect the PBT Group
Limited share capital after disposal of
Prescient Holdings Proprietary Limited (53 792) - - - 53 792 - - -
Total contributions by and distributions
to owners of the Company (523 645) - 9 260 (2 743) (957 864) (1 474 992) (3 430)(1 478 422)
Changes in ownership interests in
subsidiaries
Acquisition of non-controlling interests - - - - 12 470 12 470 (12 470) -
Disposal of subsidiary - - - - - - 1 784 1 784
Total changes in ownership interests i
subsidiaries - - - - 12 470 12 470 (10 686) 1 784
Total transactions with owners of the
Company (523 645) - 9 260 (2 743) (945 394) (1 462 522) (14 116)(1 476 638)
Balance at 31 March 2017 144 015 12 716 (7 316) - 410 600 560 015 12 434 572 449
* During December 2016, the Group's forfeitable share plan had been terminated.
** Refer to note 6.
Dividend per share (cents) 2017 2016
Interim - declared 13 December 2016 (2016: 26 November 2015) 2.25 2.85
Final - declared 30 June 2017 (2016: 29 June 2016) - 1.90
ABRIDGED AUDITED CONSOLIDATED
STATEMENT OF CASH FLOWS
For the year ended 31 March 2017
2017 2016
Note R'000 R'000
Cash flows from operating activities
Profit for the year 1 206 029 119 092
Income tax expense 25 449 47 202
Non-cash movements and adjustments to profit before tax (1 318 195) (970 453)
Cash generated from policyholder activities 307 697 981 892
Contributions and investment income 3 065 617 3 495 961
Withdrawals by policyholders (2 757 920) (2 514 069)
Changes in working capital (54 288) (10 470)
Dividends received 12 641 2 946
Dividends paid (72 706) (97 679)
Interest received 5 358 19 358
Interest paid (6 724) (10 862)
Taxation paid (25 454) (50 998)
Net cash inflow from operating activities 79 807 30 028
Cash flows from investing activities
Acquisition of equipment (2 843) (8 040)
Disposals of equipment 789 -
Acquisition of intangible assets (1 243) (8 382)
Proceeds on loss in control of subsidiary, net of cash disposed of - 2 155
Disposal of equity-accounted investee - 3 064
Proceeds on disposal of discontinued operations, net of cash disposed of 2 1 317 935 -
(Acquisition)/Disposal of financial assets at fair value through profit or loss (53 104) 6 026
Advancement of long-term loans receivable (5 704) (2 313)
Cash inflow/(outflow) from investing activities 1 255 830 (7 490)
Cash flows from financing activities
Acquisition of own shares (145) 2 074
Capital distribution (1 427 822) -
Increase in loans payable 32 899 4 499
Cash (outflow)/inflow from financing activities (1 395 068) 6 573
Net (decrease)/increase in cash and cash equivalents (59 431) 29 111
Effect of exchange rate fluctuations on cash held (1 070) 18 133
Cash and cash equivalents at beginning of the year 96 512 49 268
Cash and cash equivalents at end of the year 36 011 96 512
Notes to the abridged audited consolidated financial statements
1. Basis of preparation and accounting policies
The abridged audited consolidated financial statements have been prepared in accordance with IAS 34 Interim Financial
Reporting, as well as the AC 500 standards as issued by the Accounting Practices Board, the requirements of the South African
Companies Act, and the Listings Requirements of the JSE. The abridged audited consolidated financial statements do not include
all of the information required for full annual financial statements. The abridged audited consolidated financial statements have
been prepared in accordance with the historical cost basis, except for certain financial instruments and investment property
which are stated at fair value. The abridged audited consolidated financial statements are presented in Rand, rounded to the
nearest thousand. The accounting policies applied in the presentation of the abridged audited consolidated financial statements
are in accordance with International Financial Reporting Standards and are consistent with those presented in the annual
financial statements. The abridged audited consolidated financial statements have been extracted from audited information,
but have not, in themselves, been audited. The auditor's unqualified audit report and the audited financial statements are
available for inspection at the Company's registered office in terms of 3.18 (F) of the Listings Requirements.
2. Judgements and estimates
Preparing the financial statements requires management to make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may
differ from these estimates.
In preparing these abridged audited consolidated financial statements, significant judgements made by management in
applying the Group's accounting policies and key sources of estimation uncertainty were the same as those that applied to the
consolidated financial statements as at and for the year ended 31 March 2016.
3. Related party transactions
PBT Group Limited (previously Prescient Limited) and its subsidiaries (the Group or the Company), in the ordinary course of
business, entered into various intercompany transactions with related parties. The Company has related party relationships
with subsidiaries and with its key management personnel. There were no significant changes to these relationships, other than
those transactions between the Prescient Holdings Proprietary Limited Group and the remaining entities in PBT Group. Prescient
Holdings Proprietary Limited Group no longer forms part of PBT Group.
4. Subsequent events
There were no material events subsequent to the reporting date other than the capital reduction distribution. Refer to the capital
reduction distribution paragraph in the letter to Stakeholders for further information.
5. Earnings per share
BASIC EARNINGS PER SHARE
The calculation of basic earnings per share at 31 March 2017 was based on the profit attributable to ordinary shareholders
of R1 184 580 219 (2016: R107 054 988) and a weighted average number of ordinary shares outstanding of 1 619 927 367
(2016: 1 600 156 235), calculated as follows:
Profit attributable to ordinary
shareholders 31 March 2017 31 March 2016
Continuing Discontinued
Continuing Discontinued operations operations
R'000 operations operations Total Restated Restated* Total
(Loss)/Profit for the year,
attributable to owners of the
Company (29 858) 1 233 401 1 203 543 14 684 94 320 109 004
Earnings attributable to FSP
shareholders (5 129) (13 834) (18 963) (527) (1 422) (1 949)
(Loss)/Profit attributable to
ordinary shareholders (34 987) 1 219 567 1 184 580 14 157 92 898 107 055
Weighted average number of ordinary shares 2017 2016
In thousands of shares
Ordinary shares at 1 April 1 669 251 1 648 655
Effect of treasury shares held (23 022) (29 672)
Effect of forfeitable share plan (26 302) (29 666)
Effect of shares issued and share capitalisation - 10 839
Weighted average number of ordinary shares at 31 March 1 619 927 1 600 156
HEADLINE EARNINGS PER SHARE
Headline earnings per share has been calculated in accordance with Circular 2/2015 issued by the South African Institute of
Chartered Accountants.
Diluted earnings per share is equal to basic earnings per share. Diluted headline earnings per share is equal to headline earnings
per share.
Earnings Earnings
Non- attributable attributable
Profit before controlling to FSP to ordinary Cents per
R'000 tax Tax interests shareholders shareholders share
2017
Continuing operations
Per the statement of
comprehensive income 1 845 (25 449) (6 255) 5 129 (24 730) (1.53)
Adjustments
Impairment loss on goodwill 31 645 - - - 31 645 1.95
Change in fair value of
investment property (4 179) - - - (4 179) (0.26)
Continuing operations headline
earnings 29 311 (25 449) (6 255) 5 129 2 736 0.16
Discontinued operations
Per the statement of
comprehensive income 1 259 744 (30 111) 3 769 13 834 1 247 236 76.99
Adjustments
Gain on sale of discontinued
operations* (1 153 710) - - - (1 153 710) (71.22)
Discontinued operations
headline earnings 106 034 (30 111) 3 769 13 834 93 526 5.77
Total
Per the statement of
comprehensive income 1 261 589 (55 560) (2 486) 18 963 1 222 506 75.46
Total group headline earnings 135 345 (55 560) (2 486) 18 963 96 262 5.93
* Including foreign exchange recycled from the foreign currency translation reserve.
2016
Continuing operations
Per the statement of
comprehensive income 40 040 (20 387) (4 969) (527) 14 157 0.88
Adjustments
Change in fair value of
investment property (3 403) - - 61 (3 342) (0.21)
Gain on partial sale of equity
accounted investee (749) - - 13 (736) (0.05)
Loss on loss of control of
subsidiary 5 818 - - (104) 5 714 0.36
Continuing operations headline
earnings 41 706 (20 387) (4 969) (557) 15 793 0.98
Discontinued operations
Per the statement of
comprehensive income 126 254 (26 815) (5 119) (1 422) 92 898 5.81
Discontinued operations
headline gain 126 254 (26 815) (5 119) (1 422) 92 898 5.81
Total
Per the statement of
comprehensive income 166 294 (47 202) (10 088) (1 949) 107 055 6.69
Total group headline earnings 167 960 (47 202) (10 088) (1 979) 108 691 6.79
6. Discontinued operations
On 10 February 2017, the final regulatory approval had been received for the Group to sell its entire investment management
segment as per the Proposed Transaction with Stellar Capital as previously communicated to shareholders in the Circular posted
on 30 September 2016. The proposed transaction included a subscription of Prescient Holding's "B" shares by Stellar Capital
to an amount of R1.428 billion. Following the subscription, Prescient Limited declared a distribution of the same amount to its
shareholders. The application of the distribution was implemented by way of a scheme with the Prescient shareholders in terms of
the Companies Act. The Prescient distribution was applied on behalf of its shareholders, based on their election, to either receive
the distribution in cash, subscribe for Stellar Capital shares or reinvest into Prescient Holdings and its subsidiaries by purchasing
"B" ordinary shares. The Proposed Transaction has been completed, and Prescient Holdings no longer forms part of Prescient
Limited. Prescient Limited was renamed to PBT Group Limited.
The investment management segment was not previously classified as held-for-sale or as a discontinued operation.
The comparative consolidated provisional statement of profit or loss and OCI has been restated to present the discontinued
operations separately from continuing operations.
To achieve this presentation, management has eliminated from the results of the discontinued operations the inter-segment
loans, receivables and interest income and expenses.
2017 2016
Results of discontinued operations R'000 R'000
Revenue 340 687 367 264
Other income 1 735 1 453
Expenses (236 388) (242 463)
Results from operating activities 106 034 126 254
Tax (30 111) (26 815)
Results from operating activities, net of tax 75 923 99 439
Gain on sale of discontinued operations* 1 153 710 -
Profit for the year 1 229 633 99 439
Earnings per share (cents) 76.99 5.81
* Included in the gain on sale of discontinued operations is an amount of R92.4 million relating to the excess pay out as per the SENS
announcement released on 26 May 2017.
Profit from discontinued operations of R1.2 billion (2016: R94.3 million) was attributable to the owners of the company. Of the loss
from continuing operations of R23.6 million (2016: profit of R19.7 million), an amount of R29.9 million was attributable to the owners
of the Company (2016: R14.7 million profit).
2017 2016
Cash flows from/(used in) discontinued operations R'000 R'000
Net cash from operating activities 88 180 62 309
Net cash used in investing activities (87 036) (27 932)
Net cash from financing activities 3 631 7 931
Net cash flow for the year 4 775 42 308
2017
Major classes of assets and liabilities disposed of R'000
Property and equipment 7 705
Goodwill and intangible assets 75 262
Deferred tax asset 9 261
Long-term loans receivable 68 301
Investment in equity-accounted investee 2 382
Financial assets at fair value through profit or loss 190 692
Linked investments backing policyholder funds 11 192 166
Trade and other receivables 1 213 416
Taxation receivable 568
Cash and cash equivalents 168 366
Deferred tax liability (729)
Policyholder investment contract liabilities (11 192 166)
Long-term loans payable (74 216)
Trade and other payables (1 218 056)
Current tax payable (12 093)
Bank overdraft (58 479)
Net assets and liabilities 372 380
Consideration received in cash 1 427 822
Cash and cash equivalents disposed of (109 887)
Net cash inflow 1 317 935
7. Goodwill and intangible assets
Internally System
Patents and developed Computer development
R'000 Goodwill trademarks software software costs Total
Cost
Opening balance - 1 April 2015 424 253 2 024 35 765 270 - 462 312
Additions - - 359 656 7 367 8 382
Disposals (17 491) - - - - (17 491)
Closing balance - 31 March 2016 406 762 2 024 36 124 926 7 367 453 203
Opening balance - 1 April 2016 406 762 2 024 36 124 926 7 367 453 203
Additions - - 485 758 - 1 243
Disposal of discontinued
operations (98 468) (2 024) - - (7 367) (107 859)
Closing balance - 31 March 2017 308 294 - 36 609 1 684 - 346 587
Internally System
Patents and developed Computer development
R'000 Goodwill trademarks software software costs Total
Accumulated
impairment/amortisation
Opening balance - 1 April 2015 31 143 704 16 161 256 - 48 264
Amortisation for the year - 200 6 192 37 550 6 979
Closing balance - 31 March 2016 31 143 904 22 353 293 550 55 243
Opening balance - 1 April 2016 31 143 904 22 353 293 550 55 243
Amortisation for the year - - 5 560 521 - 6 081
Impairment loss 31 645 - - - - 31 645
Disposal of discontinued
operations (31 143) (904) - - (550) (32 597)
Closing balance - 31 March 2017 31 645 - 27 913 814 - 60 372
Carrying amounts
At 31 March 2016 375 619 1 120 13 771 633 6 817 397 960
At 31 March 2017 276 649 - 8 696 870 - 286 215
IMPAIRMENT TEST OF GOODWILL
The Group has recognised an impairment loss of R31.6 million in profit or loss relating to goodwill of PBT Group's CGUs based on
the value-in-use method to determine the recoverable amount. The value-in-use was determined by discounting future cash
flows of the Group as a single CGU.
The key assumptions used in the estimation of the recoverable amount are set out below. The values assigned to the key
assumptions represented management's assessment of future trends in the relevant industries and were based on historical data
from both external and internal sources.
2017 2016
Discount rate 17% 16%
Terminal value growth rate 6% 6%
Budgeted EBITDA growth rate 8% 8%
The discount rate was a post-tax measure estimate based on the historical industry average weighted-average cost of capital.
The cash flow projections included specific estimates for five years and a terminal growth rate thereafter. The terminal growth
rate was determined based on management's estimate of the long-term compound annual EBITDA growth rate, consistent with
the assumption that a market participant would make.
A sensitivity analysis was performed to analyse the impact of increasing the forecast risk premium from 2% to 5%. This would result
in a discount rate of 20%. Increasing the forecast risk premium by this factor, results in an impairment of approximately R94 million.
8. Trade and other receivables
2017 2016
R'000 R'000
Trade and other receivables include the following:
Trade receivables 132 415 208 086
VAT receivable 72 833
Deposits 1 408 1 177
Prepayments 720 3 059
Accrued income 656 708
Interest receivable - 1 096
Dividend receivable 92 397 -
227 668 214 959
9. Income tax expense
2017 2016
R'000 R'000
Tax recognised in profit or loss
Current tax expense
Current year 15 781 9 545
Adjustment to prior years (50) 3 934
15 731 13 479
Withholding tax - Section 6quat(1C) 16 584 5 272
32 315 18 751
Deferred tax expense
Origination and reversal of temporary differences (6 866) 1 636
(6 866) 1 636
Income tax expense on continuing operations 25 449 20 387
10.Fair value disclosure and hierarchy
The table below analyses financial instruments carried at fair value by valuation method. Fair values are determined according
to the following hierarchy based on the requirements in IFRS 13 Fair Value Measurement:
Level 1 Unadjusted quoted market prices: financial assets and liabilities with quoted prices for identical instruments in active
markets that the Company can access at the measurement date.
Level 2 Valuation techniques using observable inputs: quoted prices (other than those included in level 1) for similar
instruments in active markets or quoted prices for identical or similar instruments in markets that are less than
active and financial assets and liabilities valued using models where all significant inputs are observable directly
or indirectly from market data.
Level 3 Valuation techniques using significant unobservable inputs: financial assets and liabilities valued using valuation
techniques where one or more inputs are unobservable and have a significant effect on the instrument's valuation.
R'000 Level 1 Level 2 Level 3 Total
2017
Financial assets
Financial assets at fair value through profit or loss 31 404 722 - 32 126
Investment property - 33 430 - 33 430
Total financial assets measured at fair value 31 404 34 152 - 65 556
2016
Financial assets
Financial assets at fair value through profit or loss 112 716 38 723 - 151 439
Investment property - 35 728 - 35 728
Linked investments backing policyholder funds 10 244 977 730 235 - 10 975 212
Total financial assets measured at fair value 10 357 693 804 686 - 11 162 379
Financial liabilities
Policyholder investment contract liabilities - 10 974 330 - 10 974 330
Total financial liabilities measured at fair value - 10 974 330 - 10 974 330
11.Segment report
In 2016 the Group had two reportable segments according to strategic divisions. These two segments were financial
services and information management services. After the disposal of the financial services segment, the Group’s core
operations consisted of mainly information management services. The reportable segments for the current
financial year are according to geographical areas, namely South Africa, Middle East/Africa and Australia.
- South Africa includes consulting and implementation of data, management information software and healthcare
administration services.
- Australia includes consulting and implementation of data, management information software and healthcare
administration services.
- Middle East/Africa includes consulting and implementation of data and management information software.
CONTINUING OPERATION
South Africa Australia Middle East/Africa Other Total
R’000 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016
Segment external total income 330 557 279 347 79 738 82 333 159 673 173 344 47 592 10 606 617 560 545 630
Segment profit/(loss) before tax 25 746 26 142 12 061 8 738 (40 704) 8 135 36 387 (2 975) 33 490 40 040
Segment assets* 88 039 77 758 28 862 30 793 91 149 136 897 192 673 153 160 400 723 398 608
Segment liabilities (20 475) (102 262) (10 135) (9 724) (62 593) (47 766) (11 720) (13 292) (104 923) (173 044)
DISCONTINUED OPERATIONS
South Africa Australia Middle East/Africa Other Total
R’000 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016
Segment external total income 322 322 351 226 – – – – 20 100 17 491 342 422 368 717
Segment profit before tax 94 146 120 533 – – – – 11 888 5 721 106 034 126 254
Segment assets* – 11 940 949 – – – – – 30 269 – 11 971 218
Segment liabilities – (11 719 256) – – – – – (1 904) – (11 721 160)
GROUP
South Africa Australia Middle East/Africa Other Total
R’000 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016
Segment external total income 652 879 630 573 79 738 82 333 159 673 173 344 67 692 28 097 959 982 914 347
Segment profit/(loss) before tax 119 892 146 675 12 061 8 738 (40 704) 8 135 48 275 2 746 139 524 166 294
Segment assets* 88 039 12 018 707 28 862 30 793 91 149 136 897 192 673 183 429 400 723 12 369 826
Segment liabilities (20 475) (11 821 518) (10 135) (9 724) (62 593) (47 766) (11 720) (15 196) (104 923) (11 894 204)
* Goodwill is not managed as part of segment assets and has therefore been excluded.
2017 2016
Reconciliation of reportable segment profit or loss R'000 R'000
Total consolidated profit before tax for reportable segments 139 524 166 294
Less impairment of goodwill (31 645) -
Elimination of discontinued operations (106 034) (126 254)
Profit before tax 1 845 40 040
NOTICE OF ANNUAL GENERAL MEETING
Notice is hereby given to all shareholders of the PBT Group as at the record date set out below that the
AGM of shareholders will be held at 12:00 on Wednesday, 20 September 2017 at PBT House, 2 Mews
Close, Waterford Mews, Century City, 7441 to transact such business as is set out in the Notice of AGM.
The record date for shareholders to be recorded as such in the securities’ register of the Company in
order to be able to attend, participate and vote at the AGM is Friday, 15 September 2017. Accordingly,
the last date to trade to be eligible to attend, participate and vote at the AGM is Tuesday, 12
September 2017. The Notice of AGM is contained in the Integrated Report posted to shareholders on
07 August 2017.
AUDIT OPINION
This abridged report is extracted from the audited information, but is not itself audited. The financial
statements from which these results were extracted were audited by KPMG Inc. and their unmodified
opinion is included in the financial statements. The directors take full responsibility for the
preparation of this abridged report and confirm that the financial information has been correctly
extracted from the underlying annual financial statements.
By order of the Board
PJ de Wet AM Louw
CEO Chairman
Cape Town
4 August 2017
Sponsor: Bridge Capital Advisors Proprietary Limited
Date: 04/08/2017 04:32:00 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 
