Wrap Text
Summarised Audited Provisional Consolidated Results for the Period Ended 31 December 2017
4SIGHT HOLDINGS LIMITED
(Incorporated in the Republic of Mauritius)
(Registration number: C148335 C1/GBL)
(“4Sight Holdings” or “the Company” or "the Group")
ISIN Code: MU0557S00001 JSE Code: 4SI
SUMMARISED AUDITED PROVISIONAL CONSOLIDATED RESULTS FOR THE PERIOD ENDED
31 DECEMBER 2017
COMPANY AND FINANCIAL HIGHLIGHTS:
The Board of Directors is pleased to present its first set of results from date of incorporation on
28 June 2017 to 31 December 2017. During the first period of operations 4Sight Holdings had the
following highlights:
- Earnings per share and headline earnings per share of 0.51 USD cents and 0.50 USD cents
exceeded the forecast of 0.36 USD cents per share by 39.2% and 38.3% respectively;
- Attributable profit was 3.1% higher than the profit forecast at USD1 832 044;
- The Company successfully listed on the JSE on 19 October 2017, raising R112 million;
- 4Sight Holdings acquired 100% of Digitata Limited, a well-established Mauritian group, with
presence in 16 countries and with a client base of over 20 large telecommunication
companies (“Telcos”);
- Digitata’s Dynamic tariffing provides operators with the ability to price calls, SMS, data,and
content intelligently. The Digitata Networks subsidiary Provides intelligent vendor-agnostic
solutions to monitor, audit, control and automate mobile technologies (2G, 3G, 4G) across
multiple network components. Digitata Network was successful post listing in expand into
the America’s into a tier 1 operator group;
- The Digitata Limited group also included Digitata Insights that uses gamification technology
to reach and engage consumers on feature and smart mobile devices on behalf of its
customers. At the annual Mobile Marketing Awards for Europe, the Middle East and Africa
Smarties Awards gala ceremony, held on 25 October 2017 in Turkey, Digitata Insights was
the only mobile marketing provider shortlisted for two campaigns (out of five) in the
‘Marketing within a Mobile Gaming Environment’ category, and won a Silver for its
Unstructured Supplementary Service Data (USSD) mobile gamification campaign, ‘The
Masterpass Race’;
- The Digitata subsidiary Glovent focuses on providing smart property solutions in the
Industry4.0 economy, ranging from smart utility management to communication and billing
services. They have a client base of 650 residential communities representing around 130 000
households adding 3 000 households monthly;
- The BluESP group was acquired subsequent to listing, being the first acquisition in the mining
and manufacturing Industry4.0 vertical. BluESP is a leading engineering technology
company, focussing on delivering software solutions to the mining and manufacturing
sector. These solutions enable companies to operate their processing plants or
manufacturing processes optimally, maximising revenues, eliminating inefficiencies and
minimising costs;
- BluESP customers in South Africa include Sasol, Columbus Stainless, Anglo-American,
Glencore, Impala Platinum, Lonmin, Samancor, Tharisa, South32, Chevron, Arcelor Mittal,
Natref and Kynoch. Global customers include First Quantum Minerals (Zambia), Mount Isa
Mines (Australia), Sekura (Malaysia), GS Caltex (South Korea) and Shell (Germany); and
- 4Sight Holdings also acquired Age Technologies Proprietary Limited (“AGE”), one of the
leading systems integrators in Africa, with presence in 15 countries. AGE offers controls
systems, instrumentation, green energy and information technology communications and
provides professional system integration of automation and electrical engineering projects,
providing cutting edge technology solutions to increase efficacy in an innovative way.
SUMMARISED AUDITED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
Audited
6 months ended
31 December
Figures in US Dollars 2017
Revenue 11 980 920
Cost of Sales (2 582 125)
Gross Profit 9 398 795
Operating income 69 195
Operating expenses (7 114 045)
Operating profit 2 353 945
Investment income 21 713
Finance costs (63 596)
Profit before taxation 2 312 062
Taxation (219 918)
Total comprehensive income for the period 2 092 144
Other comprehensive income:
Exchange differences on translating foreign operations 256 982
Other comprehensive income for the period net of taxation 256 982
Total comprehensive income for the period 2 349 126
Profit attributable to:
Owners of the parent 1 832 044
Non-controlling interest 260 100
2 092 144
Total comprehensive income attributable to:
Owners of parent 2 089 026
Non-controlling interest 260 100
2 349 126
Per share information:
Earnings per Share (USD cents) 0.51
Diluted Earnings per Share (USD cents) 0.49
Weighted average number of shares in issue 360 695 468
Fully diluted weighted average number of shares in issue 374 930 762
SUMMARISED AUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Audited
31 December
Figures in US Dollars 2017
ASSETS
Non-Current Assets 38 509 359
Property, plant and equipment 3 048 548
Goodwill 23 803 478
Intangible assets 10 487 844
Deferred tax 1 169 489
Current Assets 14 952 097
Inventories 144 862
Trade and other receivables 10 246 173
Other financial assets 24 940
Current tax receivable 73 564
Cash and cash equivalents 4 462 558
Total Assets 53 461 456
EQUITY AND LIABILITIES
Equity
Equity attributable to Equity Holders of Parent
Share capital 41 295 921
Reserves (2 960 141)
Retained income 1 832 044
40 167 824
Non-controlling interest (87 550)
40 080 274
Liabilities
Non-Current Liabilities 4 567 042
Other financial liabilities 3 720 160
Deferred income 698 948
Deferred taxation 147 934
Current Liabilities 8 814 140
Trade and other payables 5 460 147
Other financial liabilities 559 712
Deferred income 2 549 991
Bank overdraft 244 290
Total Liabilities 13 381 182
Total Equity and Liabilities 53 461 456
SUMMARISED AUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Total
Foreign attributable
Currency Non- to equity Non-
Share Translation Distributable Retained holders of controlling Total
Figures in US Dollars capital reserve Reserves Income the Group interest equity
Group
Profit for the period - - - 1 832 044 1 832 044 260 100 2 092 144
Other comprehensive income - 256 982 - 256 982 - 256 982
Total comprehensive income for the - 256 982 1 832 044 2 089 026 260 100 2 349 126
period
Issue of shares 41 295 921 - - 41 295 921 - 41 295 921
Acquisition of minority interest - - (3 217 123) - (3 217 123) (3 508 223) (6 725 346)
Business combinations - - - - 3 160 573 3 160 573
Balance at 31 December 2017 41 295 921 256 982 (3 217 123) 1 832 044 40 167 824 (87 550) 40 080 274
SUMMARISED AUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
Audited
6 months ended
31 December
Figures in US Dollars 2017
Cash flows from operating activities
Cash generated from operations (2 071 979)
Interest income 21 713
Finance costs (63 596)
Tax paid (320 830)
Net cash from operating activities (2 434 692)
Cash flows from investing activities
Purchase of property, plant and equipment (40 602)
Proceeds on disposal of property, plant and equipment 31 581
Purchase of intangible assets (780 423)
Business combinations 3 172 350
Other financial assets repaid 4 010 022
Net cash from investing activities 6 392 928
Cash flows from financing activities
Proceeds on share issue 1 144 473
Proceeds from other financial liabilities 4 347 977
Repayments of other financial liabilities (1 990 471)
Acquisition of minorities without change in control (3 297 250)
Net cash from financing activities 204 729
Total cash movement for the period 4 162 965
Effect of translation of foreign entities 55 303
Total cash at end of the period 4 218 268
BASIS OF PREPARATION AND ACCOUNTING POLICIES
The accounting policies and method of measurement and recognition applied in the preparation
of these summarised audited consolidated provisional results are in terms of International Financial
Reporting Standards (“IFRS”). This is the first year of reporting for the Group.
The summarised audited consolidated provisional results are prepared in accordance with the
requirements of the JSE Limited Listings Requirements for provisional reports and the requirements
of the Mauritian Companies Act, 15 of 2001. The summarised audited consolidated provisional
results are presented in terms of the disclosure requirements set out in International Accounting
Standards ("IAS") 34 – Interim Financial Reporting, as well the SAICA Financial Reporting Guides as
issued by the Accounting Practices Committee and Financial Reporting Pronouncements as
issued by the Financial Reporting Standards Council.
The Financial Director, Jacques Hattingh, was responsible for the preparation of the summarised
audited consolidated provisional results. Any reference to future financial performance included
in this announcement has not been reviewed or reported on by the Group’s external auditors.
The directors of 4Sight Holdings(“the Board”) take full responsibility for the preparation of the summarised
audited consolidated provisional results. The financial information has been correctly extracted
from the underlying financial statements.
This summarised report is extracted from audited information, but is itself not audited. The financial
statements were audited by Nexia SAB&T, who expressed an unmodified opinion thereon. The
audited financial statements and the auditor’s report thereon are available for inspection at the
Company’s registered office.
SEGMENTAL REVENUE, TOTAL ASSETS, TOTAL LIABILITIES AND RESULTS
The Executive Directors assess the performance of the operating segments based on the
measure of operating profit.
The Group has two strategic divisions, which are its reportable segments. These divisions offer
different products and services, and are managed separately because they require different
technology and marketing strategies.
The two reportable segments consist of “Telco/Media/Property” and “Mining and Manufacturing”.
The following summary describes the operations of each reportable segment.
TELCO / MEDIA / PROPERTY
The Telco / Media / Property segment was originally acquired in terms of the 4Sight Holdings' strategy in which
our algorithms help network operators to optimize revenue while retaining customers on the
network within optimal use of the network infrastructure and our digital media solution helps
brands to reach and engage consumers for brand awareness, campaigns and customer
behaviour profiling.
This segment further consists of the following minor segments:
Dynamic Tariffing - provides operators with the ability to price calls, SMS, data, and content
intelligently. This intelligence is applied to the customer “segment of one” with a smart app to
provide data control, customer behaviour, and real-time offers to consumers.
Networks services - provides intelligent vendor-agnostic solutions to monitor, audit, control and
automate mobile technologies (2G, 3G, and 4G) across multiple network components.
Insights / Media - uses gamification technology to reach and engage consumers on feature and
smart mobile devices on behalf of its customers.
Property services - focuses on providing smart property solutions in the Industry4.0 economy,
ranging from smart utility management to communication and billing services.
Development - Provision of development services for a range of software applications both
internally and externally relating to the telecommunications, media and property industry.
MINING AND MANUFACTUIRNG
The Mining and Manufacturing segment consists mainly of two entities namely BluESP and Age.
BluESP
Revenue from BluESP arises from both annuity and project related income and consists of
Software, Consulting Services, Training and Support of Solutions that helps customers increase
profitability through Supply Chain Optimisation, Production Optimisation, Prescriptive
Maintenance and Manufacturing Execution Solutions.
AGE
AGE is a systems integrator and sales are derived from the sale of products such as sensors, IoT,
instrumentation, control system hardware, cabling and networking equipment for large Industrial
installations and the associated engineering and services work. Current installations are being
done in the mining and water segments in Southern African Countries. This includes South Africa,
Botswana, Zambia, Democratic Republic of Congo, Zambia and Zimbabwe. This is the only
company in the Group that sell physical (IoT) products and provide interfacing between the digital
and real worlds.
Six-month period ended 31 December 2017
Telco/Media/ Mining and
Figures in US Dollars Property Manufacturing Other Total
Revenue External 10 620 892 1 360 028 - 11 980 920
Operating Profit / (Loss) 2 851 271 116 354 (122 245) 2 845 380
Depreciation and amortisation (517 734) (15 584) - (533 318)
Taxation (219 249) (1 642) 973 (219 918)
Profit/(Loss) 2 114 288 99 128 (121 272) 2 092 144
Total assets 40 034 489 13 483 565 (56 597) 53 461 456
Total liabilities 7 302 821 6 134 959 (56 598) 13 381 182
Geographical segment
The Group operates principally in Mauritius and South Africa. Thus, these locations have been
disclosed, however, areas such as the Seychelles, Panama and other locations are insignificant,
and thus not shown as a separate segment:
Figures in US Dollars
Total
31 December 2017 South Africa Mauritius Eliminations reported
Revenue
- External 4 367 405 7 613 515 - 11 980 920
- Internal 3 012 947 779 953 (3 792 900) -
7 380 352 8 393 468 (3 792 900) 11 980 920
Operating profit/(loss) 950 042 1 910 038 (14 700) 2 845 380
Depreciation & Amortisation (99 215) (434 103) - (533 318)
Taxation (106 469) (114 235) 786 (219 918)
Net profit for the year 744 358 1 361 700 (13 914) 2 092 144
Total assets 17 269 553 66 929 895 (30 737 992) 53 461 456
Total liabilities 9 671 976 12 543 815 (8 834 609) 13 381 182
COMMENTARY
4Sight Holdings is a public company, newly incorporated in accordance with the laws of the
Republic of Mauritius specifically for the listing. 4Sight Holdings was established as a diversified
holding company with a core focus on providing decision support technology solutions that
enable, inter alia, intelligent pricing and decisions across various industries.
At the end of June 2017, 4Sight Holdings concluded the acquisition of the entire issued share
capital of Digitata Limited, which became the Company’s first wholly-owned subsidiary ahead of
the listing with effect from 1 July 2017. Digitata Limited operates mainly in the telecommunications
industry, specialising in the “Internet-of-Things”, Big Data, Machine Learning (“ML”), Artificial
Intelligence (“AI”), block-chain technology, and data science.
4Sight Holdings’ business model follows an acquisitive and organic growth strategy. The acquisition
strategy provides for the acquisition of existing business entities with deep skills in data science and
real-time decision-making solutions, while the growth strategy focuses on leveraging existing
technology capabilities across new business vertical applications within the Group. Subsequent
to listing and before year end, the Company successfully acquired 100% of the BluESP group and
Age Technologies, which provide leading systems integration and decision-making solutions for
the mining and manufacturing sector in 16 countries, also using Algorithms, ML, Internet-of-Things
and AI.
The Group currently delivers real-time dynamic pricing solutions to the telecommunications sector,
with real-time processing optimization services for the basic materials, energy, and utilities business
sectors. It delivers turnkey optimisation solutions to large mining and manufacturing companies
around the world and is able to bring its big data science and analytical skills to most industries.
The management team of the Group focuses on the group strategy, investment, and brand
building for the Group. Each of the subsidiaries, including future businesses to be acquired, will
focus on and manage its own business portfolio and brand and will also have its own board that
will report back to the 4Sight Holdings’ Board, with subsidiary CEOs having dotted reporting lines
to the 4Sight Holdings’ management team.
BUSINESS OVERVIEW
This is the first set of results for 4Sight Holdings since incorporation and the Group does not have
comparative information. Accordingly, the results have been compared to the profit forecast
contained in the prospectus date 21 September 2017 as detailed below:
Audited Per prospectus
Six month Six month
period ending period ending
Figures in USD Dollars 31-Dec-17 31-Dec-17
Revenue 11 980 920 12 465 316
Cost of Sales (2 582 125) (2 023 198)
Gross Profit 9 398 795 10 442 118
Other Income 69 195 5 250
Operating Expenses (7 114 045) (6 998 590)
Operating Profit 2 353 945 3 448 778
Finance Cost 21 713 (31 793)
Investment Income (63 596) 9 844
Profit before taxation 2 312 062 3 426 829
Taxation (219 918) (939 824)
Profit after taxation 2 092 144 2 487 005
Non-controlling interests (260 100) (710 134)
Profit attributable to owners of the parent 1 832 044 1 776 871
Per share information:
Earnings per Share (USD cents) 0.51 0.36
Diluted Earnings per Share (USD cents) 0.49 0.36
Headline Earnings per Share (USD cents) 0.50 0.36
Diluted Headline Earnings per Share (USD cents) 0.49 0.36
Weighted average number of shares in issue 360 695 468 486 867 001*
Fully diluted weighted average number of shares in issue 374 930 762 486 867 001
* - assumed fully diluted in the Prospectus
The actual results compared to the forecast were primarily impacted by the strengthening of the
Rand against the US Dollar towards the end of December 2017 on the Group’s South African
operations, with the exchange rate in the Prospectus being assumed at ZAR13:USD1.
A foreign exchange loss of USD328 017 was recognised for the period ended 31 December 2017,
which had not been included in the profit forecast. This was the main difference between the
actual and forecast profit after taxation.
The amount attributable to the non-controlling interest was lower in the actual results compared
to the forecast due to certain revenue and profits being expected in the subsidiary prior to the
listing only being received after the acquisition of the minority shareholding at date of listing, thus
reducing the former minorities’ share of profits.
The above has resulted in the profit attributable to the owners of the parent being 3.1% higher
than forecast.
Furthermore, the Company had 360 695 468 weighted average shares in issue for the period
ended 31 December 2017, compared to the fully diluted number of shares assumed in the
Prospectus. This has resulted in the Earnings per Share and Headline Earnings per Share being
41.7% higher than the forecast. Subsequent to listing, the Company acquired AGE, which
acquisition also included an additional purchase price, to be settled in shares and cash against a
profit warranty over the next two years. The issue of additional shares for AGE has been assumed
in the fully diluted weighted average shares in issue.
Property, plant and equipment primarily comprises three properties held in South Africa, which
houses the Digitata South Africa operations, BluESP and AGE respectively. Goodwill of
USD23.8 million arose on the acquisitions of Digitata Limited, BluESP and AGE. Deferred income of
USD3.2 million relates primarily to licence fees paid upfront for a three-year period, of which
12 months remain.
HEADLINE EARNINGS RECONCILIATION
The headline earnings reconciliation is set out below:
USD
Profit attributable to owners of the parent 1 832 044
Adjustments for:
Profit on disposal of property, plant and equipment – net of tax (11 841)
Headline earnings for the period ended 31 December 2017 1 820 203
Per share information:
Headline Earnings per Share (US cents) 0.50
Diluted Headline Earnings per Share (US cents) 0.49
Weighted average number of shares in issue 360 695 468
Fully diluted weighted average number of shares in issue 374 930 762
ACQUISITIONS AND DISPOSALS
Subsequent to the listing but before the year end, the Company has concluded a number of
acquisitions in its targeted Industry4.0 strategy to expand into mining and manufacturing as
follows:
- BluESP Holdings Proprietary Limited and its subsidiary (“BluESP”) for a purchase consideration
of USD4.43million (R54.8 million); and
- Age Technologies Proprietary Limited (“AGE”) for a purchase consideration of USD6.47 million
(R80 million), of which USD3.23 million (R40 million) remains subject to the achievement of profit
warranties of the next two years.
The aggregate business combinations before and after listing are disclosed below:
Digitata
Figures in US Dollars AGE BluESP Limited Total
Property, plant and equipment 288 408 333 262 2 292 261 2 913 931
Intangible assets and goodwill - 67 893 12 045 916 12 113 809
Other financial assets - - 7 378 785 7 378 785
Deferred tax asset 159 853 125 459 645 054 930 366
Trade and other receivables 1 250 753 814 142 4 433 296 6 498 191
Inventory 220 981 - - 220 981
Cash and cash equivalents 147 452 634 471 5 234 471 6 016 394
Other financial liabilities (490 483) (56 275) (1 375 608) (1 922 366)
Deferred income (55 873) (804 715) (3 414 455) (4 275 043)
Bank overdraft (8 390) - - (8 390)
Forex translation reserve - - 173 442 173 442
Trade and other payables (1 574 237) (348 682) (3 784 457) (5 707 376)
Total identifiable net assets / (61 536) 765 555 23 628 705 24 332 724
(liabilities)
Non-controlling interest - - (3 160 573) (3 160 573)
Goodwill 5 913 200 3 369 882 12 531 868 21 814 950
Purchase consideration 5 851 664 4 135 437 33 000 000 42 987 101
There were no disposals during the period under review.
NON-CONTROLLING INTEREST
The movement of the non-controlling interest for the period ending 31 December 2017 is as follows:
Audited
31 December
Figures in US Dollars 2017
Balance at the beginning of the period -
Non-controlling interest in current period income 260 100
Acquisition of non-controlling interest (3 508 223)
Business combinations 3 160 573
Total non-controlling interest at the end of the period (87 550)
PROSPECTS AND REVISED PROFIT FORECAST
Shareholders are referred to the original prospectus that contained a profit forecast for the six
months ended 31 December 2017, which forecast only included the Telecommunications, Media
and Property verticals associated with Digitata Limited, which the Group acquired ahead of the
listing on 19 October 2017.
Subsequent to the listing, the Company has concluded a number of acquisitions in its targeted
Industry4.0 strategy to expand into mining, manufacturing and data analytics as follows:
- BluESP group, effective 1 November 2017;
- AGE Technologies, effective 1 November 2017; and
- Foursight Holdings Limited and its subsidiaries, namely Visualitics, Casewise and Fleek
(“Foursight SA”) – announced on 15 January 2018, effective 1 January 2018
(together the “4Sight Holdings Acquisitions”).
Further to the 4Sight Holdings Acquisitions, the Board of 4Sight Holdings have decided to issue
revised profit forecasts to those published in the Company’s prospectus which was issued on
21 September 2017. The reason for the revision of the forecasts is to provide a more accurate
representation of the Company’s prospects going forward, taking into account the 4Sight
Holdings Acquisitions.
The revised profit forecasts, including detailed assumptions, of the enlarged 4Sight Holdings group
was published on SENS on 9 March 2018 for the year ending 31 December 2018 and is represented
below.
REVISED
Year ending
Figures in US Dollars 31-Dec-18
Revenue 43 716 698
Cost of Sales (16 818 854)
Gross Profit 26 897 844
Other Income 3 545
Operating Expenses (21 970 071)
Operating Profit 4 931 318
Finance cost (317 554)
Finance Income 33 129
Profit before taxation 4 646 893
Taxation (1 333 606)
Profit after taxation 3 313 287
Non-controlling interests (272 207)
Profit attributable to owners of the parent 3 041 080
Share information:
Earnings per share (US cents) 0.67
Weighted average number of shares in issue 455 048 276
Earnings per share (US cents) 0.66
Weighted average number of shares in issue (fully diluted) 461 098 276
COMMITMENTS AND SUBSEQUENT EVENTS
Acquisition of Foursight South Africa
Subsequent to year end, the Company acquired 100% of Foursight South Africa and its subsidiaries
for a purchase consideration of USD6.93 million (R85.57 million), which group of companies provide
data science, analytics as well as enterprise architecture and enterprise data modelling and
design, which are the cornerstones of enabling digitization of physical assets. These data
management tools form the basic design and deployment tools of analysing, constructing, and
deploying data in Industry4.0 applications.
4Sight Holdings plans to use these tools as the backbone data management capability across the
Group and will enable an end-to-end data management solution for the “analysis” focus in 4Sight
Holdings with a complete offering from real-time data analytics, big data, process mining, business
process management(BPM) and workflow solutions.
Planned acquisition of Curo Health
The Company has entered into an agreement, through its wholly owned subsidiary, Foursight
Holdings Proprietary Limited (acquired subsequent to year end), with Tigrasmart Proprietary
Limited (“the vendor”) for the acquisition of 100% of the shares in Curo Health with effect from
1 January 2018 for a purchase consideration of USD1.766 million (R21 840 000). This company will
become a subsidiary of 4Sight Holdings and will adhere to the provisions of paragraph 10.21 of Schedule 10
of the JSE Listing Requirements.
SHARE ISSUES AND REPURCHASES
The Company was incorporated during the period under review and acquired 100% of Digitata
Limited ahead of its listing. A full schedule of shares issued before the issue of the Company’s
prospectus on 21 September 2017 is set out in Annexure 9 of the Prospectus. 4Sight Holding had
336 867 001 shares in issue at the date of issue of the Prospectus, where after the Company has
issued the following shares:
- 56 439 475 shares at R2.00 per share, amounting to USD9.13 million (R112.88 million), ahead
of its listing on the JSE;
- 18 300 000 shares at R2.00 per share in part settlement of the acquisition of 100% of the BluESP
group; and
- 6 500 000 shares at R2.00 per share for the acquisition of 100% of AGE Technologies.
There have been no repurchases of shares by the Company or any of its subsidiaries during the
period under review.
RELATED PARTY DISCLOSURE
Related party information that is relevant to an understanding of the above results primarily relates
to the initial formation of 4Sight Holdings, with the acquisition of 100% of Digitata Limited and its
subsidiaries for USD33 million, ahead of the listing, which was fully disclosed in the prospectus and
in the above results. There were no other related party transactions that are material to an
understanding of the results for the period ended 31 December 2017 above.
FINANCIAL INSTRUMENTS – FAIR VALUE AND RISK MANAGEMENT
The carrying amount of all financial assets and liabilities approximates the fair value. Directors
consider the carrying value of financial instruments of a short term nature, that mature in 12 months
or less, to approximate the fair value of such assets or liability classes. The carrying value of longer
term assets are considered to approximate their fair value as these instruments bear interest at
interest rates appropriate to the risk profile of the asset or liability class. The Group does not carry
any financial instruments measured in the statement of financial position at fair value at
31 December 2017.
GOING CONCERN
The financial statements have been prepared on the basis of accounting policies applicable to
a going concern. This basis presumes that funds will be available to finance future operations and
that the realisation of assets and settlement of liabilities, contingent obligations and commitments
will occur in the ordinary course of business.
BOARD OF DIRECTORS
From the date of incorporation, the following board appointments were made:
Director Date of appointment
Professor Antonie van Rensburg (Chief Executive Officer) 28 June 2017
Jacques Hattingh (Financial Director) 28 June 2017
Gary Lauryssen (Corporate Finance Director) 28 June 2017
Tinus Neethling (Executive Director) 28 June 2017
Conal Lewer-Allen (Non-Executive Director) 24 August 2017
Dr Rama Sithanen (Independent Chairman) 24 August 2017
Geoffrey Carter (Independent Non-Executive Director) 24 August 2017
LITIGATION
As at year end, there was no litigation pending against the Company or its subsidiaries, which is
expected to have a material impact on the results of the Group.
CONTINGENT LIABILITIES
At the financial year end the Group did not have any contingent liabilities.
DIVIDEND
The Board has agreed a formal dividend pay-out policy of at least 6.6 times cover, being at least
15% of headline earnings of the consolidated group of companies, unless the Board is of the
opinion that a lower dividend is to be declared because of the necessity to apply the Group’s
cash resources to any planned acquisitions or that it is in the interest of the Group to build up cash
reserves for foreseeable unfavourable market or economic conditions. However, no dividend is
to be declared for the initial period ended 31 December 2017 due to the current acquisition
strategy.
For and on behalf of the Board
Chief Executive Officer Group Financial Director
Prof A van Rensburg Jacques Hattingh
26 March 2018
Executive Directors Independent Non-executive directors
Prof Antonie van Rensburg (Group CEO) Geoffrey Carter
Tinus Neethling (Digitata Group CEO) Dr Rama Sithanen
Jacques Hattingh (Group CFO)
Gary Lauryssen (Group Executive – Mergers Non-executive director
and Acquisitions) Conal Lewer-Allen
Company Secretary and Registered Office Designated Advisor
Intercontinental Trust Limited Arbor Capital Sponsors Proprietary Limited
Transfer Secretaries WEBSITE
Link Market Services South Africa Proprietary http://www.4sightholdings.co.za
Limited
Date: 26/03/2018 04:19:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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