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ECSPONENT LIMITED - Reviewed Provisional Condensed Consolidated Results for the 15 months ended 30 June 2018

Release Date: 18/09/2018 08:55
Wrap Text
Reviewed Provisional Condensed Consolidated Results for the 15 months ended 30 June 2018

ECSPONENT LIMITED
Incorporated in the Republic of South Africa
Registration number: 1998/013215/06
JSE Code: ECS - ISIN: ZAE000179594
Debt Issuer Code: ECSP
("the Company", or "Ecsponent" or "the Group")

Reviewed Provisional Condensed Consolidated Results for the 15 months ended 30 June 2018

The Board of Directors ("the Board") is pleased to present the reviewed provisional
condensed consolidated results for the 15 months ended 30 June 2018 of Ecsponent and its
subsidiaries ("the Group" or "Company").

The results continue the Group's seven-year trend of achieving exponential growth. Most notably during
the reporting period, growth in headline earnings, share price and sound diversification in the Equity
Holdings investment portfolio. During the June 2018 financial period the Group continued to focus on
its core business activities, building on the foundation created through a series of rationalisation
transactions in the previous period. The Group achieved this by strengthening and expanding its
operations in respect of the provision of secured credit solutions for a range of businesses and targeted
investment products. The Group balanced its exposure to short-term, cash generative investments by
expanding its private and listed equity holdings in high-growth sectors with longer term investment
horizons. These investments have added further strength to the Group's growing balance sheet and
provide the Group with significant diversification across sectors, geographies and currencies.

The Company changed its financial year-end during the 2018 financial year, changing the reporting date
from 31 March to 30 June. The change resulted in the 2018 financial period being extended to a 15-
month period, commencing on 1 April 2017. This followed on the Company's changed financial year-
end for the 2017 financial year, where the reporting date changed from 31 December to 31 March. The
2017 financial period was extended to a 15-month period, commencing on 1 January 2016.

RESULTS HIGHLIGHTS

The financial results of the 15-month period ended 30 June 2018 reflect the impact of the rationalisation
of the Group's operations, which establish a base from which further growth can be pursued.

Both the current and comparative periods comprise of 15-month periods which ended 30 June 2018
and 31 March 2017 respectively.

Highlights of the Group's results ended 30 June 2018 compared to the prior period are set out below:

-   Total assets increased by 84.0% to R2 235.8 million compared to R1 214.8 million;
-   Headline earnings per share ("HEPS") increased by more than 100% to 6.991 cents per share
    compared to 0.014 cents per share.
-   Revenue from continuing operations increased by 45.1% to R466.9 million compared to R321.8
    million; and
-   Operating profits from continuing operations increased by 89.1% to R412.4 million compared to
    R218.2 million.

The Group's continued growth translated into an increase of 550% in the Company's share price to 65
cents per share at market close on Friday, 29 June 2018, compared to 10 cents per share at the end of
the comparative reporting period on 31 March 2017.

R811.9 million, or 36.3% of the Group's total assets of R2 235.8 million are held outside of the Common
Monetary Area. These foreign denominated assets provide a hedge against a weakening rand but also
exposes the Group's results to short-term currency volatility.

In addition, at 30 June 2018 the Group held, investments valued at R280.7 million, or 12.6% of total
assets, in listed shares. The valuation of these investments is subject to short-term price volatility but
provide the Group with a rand hedge and significant longer-term growth prospects. The Group entered
into an option agreement during the reporting period to hedge against the price volatility experienced
within its listed share portfolio.

Management continues to consider additional hedging instruments to further mitigate against
inherent short-term earnings volatility arising from market risks associated with investments in listed
foreign equities.

OPERATIONAL REVIEW

Group Overview
Below is an overview of the Group's operations for the 2018 period end.

Credit
The Group's Credit operations provide secured credit to its commercial client base. The secured credit
solutions address the demand for funding and other challenges that SMEs face, while supporting large
corporate businesses to meet their preferential procurement targets. Through a combination of secured
finance, logistics and procurement support, skills development and training, these credit solutions
support different business sectors, including:
- Emerging businesses and individuals
- Small & Medium Enterprises (SMEs)
- Large corporate businesses
- Green project developers

Broadly, these products include:
- SME credit, a model that provides wholesale funding to its target market. The nature of these facilities
  is typically medium-term, with a short-term call-up clause to ensure liquidity.
- Enterprise development, which supports large corporate businesses in meeting their preferential
  procurement targets through Supplier and Enterprise Development of emerging, qualifying vendors;
- Specialist procurement and logistics; which provides procurement support, credit terms, skills
  development and training to emerging businesses.

These credit models offer unique products, that are fully secured so that the Group never takes an
unsecured position, thereby minimising risk.

The Group controls all credit operations centrally, which significantly improves both governance and
consistency across the operations. In addition, the centralised procurement and logistics operations
provide the critical mass required to support enterprise development in each of the territories. At the
same time, it contributes to securing the Group's interests in transactions related to the
supply chain and enterprise development activities.

The demand for credit from the SME sector remains buoyant and has resulted in continued, sustained
growth of the business across the Group's footprint. Total loans and advances increased by 65.4% from
R748.7 million at 31 March 2017 to R1 238.4 million at 30 June 2018. Credit segment's operating profit
increased to R363 354 for the 15 months.

Investment Services
The Group's ability to deliver effective investment and other financial services products to the retail
market is one of its core competencies. To leverage opportunities offered through the established
distribution channel, the Investment Services business unit introduced additional preference share
products to the South African market. These products will give the Investment Services unit the ability
to meet multiple investment needs of the investor base and lead to additional profit opportunities for
the Group. Additionally, it introduced a range of traditional investment products to the market,
specifically focusing on compulsory retirement funds.

The Investment Services business unit furthermore enhanced its product offering in Swaziland by
obtaining a license to act as a Collective Investment Scheme (CIS) Manager in Swaziland.

Equity Holdings
Fundamental to Ecsponent's success is the ability to conclude mergers and acquisitions that provide
sustainable medium- to long-term capital growth. The Equity Holdings business unit invests strategically
in companies that are well-managed, profit focused and provide a balance in the Group's short- and
long-term asset base.

It targets businesses with significant intellectual property, which provide a barrier to entry for
competitors, command significant margins and apply a robust business model. The Group holds
investments in innovative and fast-growing market sectors, including fintech, renewable energy,
healthcare, and digital media and marketing.

At 30 June 2018, the Group held 12.1% in the Frankfurt listed (Luxembourg based) Fintech company
MyBucks SA Limited ("MyBucks"). This investment has the added advantage of providing a foreign
currency hedge against local currency frailty.

Total Other Financial Assets increased by 257.26% from R232.9 million to R832.2 million compared to
the comparative period. Operating profits increased to R139.0 million for the 15 months ended 30 June 2018.

The Group announced transactions during June 2018 that, amongst other investments, will result
in the increase in its investment of 12.1% to more than 25% of MyBucks during the first half of the
June 2019 financial year. The investment will give the Group enhanced exposure to financial services
and related technology, across multiple geographies and currencies which provide quantifiable value to
its operations.

Geographical Footprint
The Group's operations in South Africa are mirrored across its operational footprint in Swaziland and
Botswana, with in-country client representation in each territory. In Zambia, the Group holds a
25% stake in the local entity, which is registered as a deposit-taking financial institution under the
GetBucks brand.

The back-office infrastructure of each territory is centrally managed from South Africa.

PROSPECTS

Key elements of the Group's on-going growth strategy are:

-   the continued focus on core businesses;
-   the continued investment in the Group's credit operations;
-   achieving a reduction in concentration risk;
-   increased emphasis on high yield equity opportunities and sector diversification;
-   increased focus on technology to facilitate trade;
-   obtaining rand-based and foreign currency institutional funding; and
-   aggressive cost rationalisation/reduction.

The abovementioned approach is aimed at the continued development of a robust and
complementary financial services group which continues to provide sustainable returns.

FINANCIAL RESULTS

Presented below are the summary consolidated financial statements for the 15 months ended 30 June 2018.

Reviewed Provisional Condensed Consolidated Statement of Financial Position as at 30 June 2018

                                                                                                                                       Reviewed     Audited   
                                                                                                                                        30 June    31 March   
                                                                                                                                           2018        2017   
                                                                                                                                          R'000       R'000   
ASSETS                                                                                                                                                        
Non-current assets                                                                                                                                            
Loans and advances                                                                                                                5     803 599     667 089   
Other financial assets                                                                                                            6     537 232           -   
Investment in associates                                                                                                          4      21 500           -   
Intangible assets and goodwill                                                                                                            4 066       6 011   
Property, plant and equipment                                                                                                             4 005       6 810   
Deferred tax asset                                                                                                                       49 635      28 458   
Trade and other receivables                                                                                                                   -       4 656   
Current assets                                                                                                                                                
Loans and advances                                                                                                                5     434 753      81 562   
Other financial assets                                                                                                            6     294 956     232 980   
Cash and cash equivalents                                                                                                                45 086      25 380   
Trade and other receivables                                                                                                              37 878      36 150   
Current tax receivable                                                                                                                    2 440         186   
Inventories                                                                                                                                 654       1 222   
Non-current assets held for sale                                                                                                              -     124 313   
TOTAL ASSETS                                                                                                                          2 235 804   1 214 817   
EQUITY AND LIABILITIES                                                                                                                                        
Equity                                                                                                                                  193 139     106 986   
Non-controlling interest                                                                                                                    362    (11 429)   
Non-current liabilities                                                                                                                                       
Preference share                                                                                                                  7   1 694 362     921 925   
Other financial liabilities                                                                                                       8     150 522         871   
Finance lease liabilities                                                                                                                   879           -   
Trade and other payables                                                                                                                  1 616       2 538   
Deferred tax liability                                                                                                                   93 831      13 454   
Current liabilities                                                                                                                                           
Preference share                                                                                                                  7       7 613       6 048   
Other financial liabilities                                                                                                       8      72 432      10 476   
Current tax payable                                                                                                                         138      11 864   
Finance lease liabilities                                                                                                                   158           -   
Trade and other payables                                                                                                                 19 970      20 926   
Bank overdraft                                                                                                                              781         469   
Liabilities of disposal groups held for                                                                                                       -     130 689   
sale                                                                                                                                                          
TOTAL EQUITY AND LIABILITIES                                                                                                          2 235 804   1 214 817   

Reviewed Provisional Condensed Consolidated Statement of Profit and Loss and Other
Comprehensive Income for the period ended 30 June 2018

                                                                                                                                       Reviewed     Audited   
                                                                                                                                      15 months   15 months   
                                                                                                                                          ended       ended   
                                                                                                                                        30 June    31 March   
                                                                                                                                           2018        2017   
                                                                                                                                          R'000       R'000   
Continuing operations                                                                                                                                         
Revenue                                                                                                                                 466 984     321 795   
Cost of sales                                                                                                                          (83 637)    (43 782)   
Other income                                                                                                                             52 162      88 543   
Operating expenses                                                                                                                    (175 838)   (137 370)   
Fair value adjustments                                                                                                                  153 951    (11 017)   
Loss from equity accounted investment                                                                                                   (1 173)           -   
OPERATING PROFIT                                                                                                                        412 449     218 169   
Finance costs                                                                                                                         (260 585)   (130 351)   
PROFIT BEFORE TAXATION                                                                                                                  151 864      87 818   
Taxation                                                                                                                          9    (69 812)    (23 094)   
PROFIT FROM CONTINUING OPERATIONS                                                                                                        82 052      64 724   
Profit from discontinued operations                                                                                             3.1      15 311       2 852   
PROFIT FOR THE PERIOD                                                                                                                    97 363      67 576   
Other comprehensive (loss) / income                                                                                                     (2 547)         282   
TOTAL COMPREHENSIVE INCOME                                                                                                               94 816      67 858   
Comprehensive income attributable to non-controlling                                                                                      4 807      10 239   
interest                                                                                                                                                      
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO                                                                                               99 623      78 097   
ORDINARY SHAREHOLDERS                                                                                                                                         
Profit attributable to owners of the parent from:                                                                                                             
Owners of the parent                                                                                                                    102 180      78 012   
Non-controlling interest                                                                                                                (4 817)    (10 436)   
                                                                                                                                         97 363      67 576   
Total comprehensive income attributable to:                                                                                                                   
Owners of the parent                                                                                                                     99 623      78 097   
Non-controlling interest                                                                                                                (4 807)    (10 239)   
                                                                                                                                         94 816      67 858   
Basic and fully diluted earnings per share (cents) from                                                                                   8.047       8.074   
continuing operations attributable to equity holders of the                                                                                                   
parent                                                                                                                                                        
Basic and fully diluted earnings per share (cents) from                                                                                   1.418       0.306   
discontinued operations attributable to equity holders of the                                                                                                 
parent                                                                                                                                                        
Basic and fully diluted earnings per share (cents)                                                                               10       9.465       8.380   
attributable to equity holders of the parent                                                                                                                  

Reviewed Provisional Condensed Consolidated Statement of Changes in Equity for the 15 months ended 30 June 2018

                                                                   Share capital   Foreign currency     Common     Accumulated          Non-   Total equity   
                                                                                        translation    control   profit/(loss)   controlling                  
                                                                                            reserve    reserve                      interest                  
                                                                           R'000              R'000      R'000           R'000         R'000          R'000   
Balance at 1 January                                                     118 071              (483)   (36 687)         (2 711)       (4 653)         73 537   
2016                                                                                                                                                          
Profit for the period                                                          -                  -          -          78 012      (10 436)         67 576   
Other comprehensive                                                            -                 85          -               -           197            282   
income                                                                                                                                                        
Issue of shares                                                           27 098                  -          -               -             -         27 098   
Business combination and                                                       -                  -   (56 824)               -      (18 155)       (74 979)   
common control                                                                                                                                                
acquisitions                                                                                                                                                  
Realisation of common                                                          -                  -     93 511        (93 511)             -              -   
control reserve                                                                                                                                               
Disposal of subsidiaries                                                       -                  -          -               -         2 043          2 043   
Purchase of non-                                                               -                  -          -        (19 575)        19 575              -   
controlling interest                                                                                                                                          
Balance at 31 March                                                      145 169              (398)          -        (37 785)      (11 429)         95 557   
2017                                                                                                                                                          
Profit for the 15 months                                                       -                  -          -         102 180       (4 817)         97 363   
Other comprehensive                                                            -            (2 559)          -               -            12        (2 547)   
income                                                                                                                                                        
Issue of shares                                                                1                  -          -               -             -              1   
Disposal of subsidiary /                                                       -                  -          -        (13 469)        16 596          3 127   
Purchase of non-                                                                                                                                              
controlling interest                                                                                                                                          
Balance at 30 June                                                       145 170            (2 957)          -          50 926           362        193 501   
2018                                                                                                                                                          

Reviewed Provisional Condensed Consolidated Statement of Cash Flow Statement for the 15 months ended 30 June 2018

                                                                                                                                       Reviewed     Audited   
                                                                                                                                      15 months   15 months   
                                                                                                                                          ended    ended 31   
                                                                                                                                        30 June       March   
                                                                                                                                           2018        2017   
                                                                                                                                          R'000       R'000   
Cash generated by operations                                                                                                            343 682     177 263   
Dividend received                                                                                                                         3 000           -   
Finance cost                                                                                                                          (203 723)   (106 732)   
Taxation paid                                                                                                                          (33 647)    (25 234)   
NET CASH INFLOW FROM OPERATING ACTIVITIES                                                                                               109 312      45 297   
Purchase of property, plant and equipment                                                                                               (1 405)     (5 513)   
Proceeds on disposal of property plant and equipment                                                                                          -       1 261   
Investment in intangible assets                                                                                                            (80)       (187)   
Cash and cash equivalents disposed of                                                                                                   (6 754)    (24 994)   
Proceeds on disposal of associate                                                                                                        10 000           -   
Investment in other financial assets                                                                                                  (327 801)   (232 980)   
Disbursement of loans and advances                                                                                                    (921 003)   (564 862)   
Repayments of loans and advances received                                                                                               303 081     133 064   
Business combinations and common control acquisitions                                                                                         -      10 233   
NET CASH OUTFLOW FROM INVESTING ACTIVITIES                                                                                            (943 962)   (683 978)   
Proceeds on preference share issues                                                                                                     685 667     579 442   
Other financial liabilities raised                                                                                                      184 287      77 154   
Repayment of other financial liabilities                                                                                               (13 452)    (18 899)   
Proceeds from rights offer                                                                                                                    -      19 465   
Odd lot offer share buy back                                                                                                                  -       (112)   
Finance lease payments                                                                                                                  (1 141)           -   
NET CASH INFLOW FROM FINANCING ACTIVITIES                                                                                               855 361     657 050   
Total cash and cash equivalents movement for the period                                                                                  20 711      18 369   
Cash and cash equivalents at the beginning of the period                                                                                 26 480       9 741   
Effect of exchange rate movement on cash balances                                                                                       (2 888)     (1 631)   
Cash and cash equivalents at the end of the period                                                                                       44 303      26 480   

Notes to the Reviewed Provisional Condensed Consolidated Financial statements for the 15
months ended 30 June 2018

1. ACCOUNTING POLICIES, BASIS OF PREPARATION OF RESULTS AND AUDIT OPINION

The condensed consolidated financial statements 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. The accounting policies applied in the
preparation of the condensed consolidated financial statements are in terms of IFRS and are consistent with
those applied in the previous consolidated annual financial statements.

The results of the Group were prepared under supervision of the Group's financial director, Mr. DP van
der Merwe CA (SA).

The directors of Ecsponent Ltd ("the Board") take full responsibility for the preparation of the reviewed
provisional condensed consolidated financial statements. The financial information has been correctly
extracted from the underlying financial statements.

These condensed consolidated financial statements for the period ended 30 June 2018 have been reviewed
by Nexia SAB&T, who expressed an unmodified review conclusion. A copy of the auditor's review report is
available for inspection at the company's registered office together with the financial statements identified in
the auditor's report.

2. REVIEW OF RESULTS AND FINANCIAL POSITION

The reviewed provisional condensed consolidated financial results represent the trading results of the
Company and its subsidiaries which are active in the Credit, Equity Holdings and Investment Services
markets. The Credit and Equity Holding portfolios continued to increase. Funding for the expansions was
sustained through the Group's listed preference share programme. The market subscription of the
preference shares continues to reflect healthy demand for the Company's investment products.

3. RATIONALISATION OF GROUP OPERATIONS AND COMPARATIVE FIGURES

The Group announced a rationalisation process during 2016 designed to streamline and re-align its
operations to sustain increased strategic growth. The process continued into the current financial period
with the finalisation of the sale of the Group's credit retail operations in Botswana and the dilution to a
25% interest in the credit retail operations in Zambia.

In addition to finalising the two transactions initiated during the previous financial period, the Group,
amongst other corporate actions, disposed of its Cryo-Save and Salveo biotechnology operations as well
as the controlling interest in its media monitoring business, Return on Innovation (Pty) Ltd ("ROI").

The process results in an Ecsponent Group structure at 30 June 2018 which is focused on the Credit,
Equity Holdings and Investment Services operations. At this date the Group no longer holds a controlling
stake in or operational responsibility for any business that is not core to its focus areas.

Certain of the comparative period's figures have been reclassified to align the financial disclosures to the
altered Group structure and enhance the users understanding of the Ecsponent operations. It is,
however, important to note that none of the comparative figures have been restated and, as noted in 1
above, the accounting policies have been consistently applied.

The following comparative figures in the consolidated statement of financial position have been
reclassified:

-   An additional asset class "Loans and Advances" has been disclosed in the statement of financial
    position and as a separate note. These assets were previously disclosed as part of the other
    financial asset class in the comparative results. The additional asset class was added to
    distinguish the Credit operation's assets from those of the Equity Holding assets, which continue
    to be included under "Other Financial Assets".
    
                                                                                                                                          Colum A   Colum B   
                                                                                                                                            R'000     R'000   
    Assets                                                                                                                                                    
    Non-current assets                                                                                                                                        
    Loans and advances                                                                                                                    667 089       n/a   
    Other financial assets                                                                                                                      -   667 089   
    Current assets                                                                                                                                            
    Loans and advances                                                                                                                     81 562       n/a   
    Other financial assets                                                                                                                232 980   314 542   
    Total                                                                                                                                 981 631   981 631   
    
-   Deferred revenue is no longer a significant component of the core operations due to the
    rationalisation process. As a result, the deferred revenue liability has been included in the trade
    and other payable balance and disclosed separately in the accounting policy note.
    
                                                                                                                                          Colum A   Colum B   
                                                                                                                                            R'000     R'000   
    Liabilities                                                                                                                                               
    Non-Current liabilities                                                                                                                                   
    Trade and other payables                                                                                                                2 538       n/a   
    Deferred revenue                                                                                                                          n/a     2 538   
    Total non-current liabilities                                                                                                           2 538     2 538   
    Current liabilities                                                                                                                                       
    Trade and other payables                                                                                                               20 926    20 778   
    Deferred revenue                                                                                                                          n/a       148   
    Total current liabilities                                                                                                              20 926    20 926   

    A - The comparative figures relating to the period ended 31 March 2017, as disclosed in the 30
    June 2018 financial statements
    B - As disclosed in the 31 March 2017 financial statements

The following comparative figures in the consolidated statement of profit or loss have been reclassified:

    -   The nature of the Group's core operation predominantly gives raise to interest, investment and
        service income. The disclosure of "gross profit" in the statement of profit and loss has become
        irrelevant to the Group results. The 30 June 2018 statement of profit or loss no longer includes
        gross profit disclosure, and as a result, the comparative information has been adjusted
        accordingly.
    -   The Equity Holding operations invest with the objective to earn a combination of investment
        income and capital appreciation. The comparative figures have been adjusted to include the fair
        value adjustments relating to Equity Holding investments in the Group's operating results.

Refer below for an extract of the 31 March 2017 consolidated statement of profit or loss as disclosed in
the 31 March 2017 financial statements. The effect of the abovementioned reclassifications to the
comparative figures for 30 June 2018 is to reduce the operating profit to R218.2 million from the R229.2
million as disclosed in 31 March 2017 financial statements. The profit before taxation, however, remains
unchanged.

                                                                                                                                              31 March 2017   
                                                                                                                                                      R'000   
Revenue                                                                                                                                             321 795   
Cost of sales                                                                                                                                      (43 782)   
Gross profit                                                                                                                                        278 013   
Other income                                                                                                                                         88 543   
Operating expenses                                                                                                                                (137 370)   
Operating profit                                                                                                                                    229 186   
Fair value adjustments                                                                                                                             (11 017)   
Finance costs                                                                                                                                     (130 351)   
Profit before taxation                                                                                                                               87 818   

3.1. DISCONTINUED OPERATIONS

The transactions to dispose of the Group's interest in the Botswana retail operation and the dilution
through the subscription agreement of the retail operation in Zambia, initiated during the financial period
ended 31 March 2017, were concluded during the current financial period.

The combined results of the discontinued operations included in the profit for the period are set out
below:

Profit and loss - 15 months ended 30 June 2018                                                                                                     Reviewed   
                                                                                                                                                    30 June   
                                                                                                                                                       2018   
                                                                                                                                                      R'000   
Revenue                                                                                                                                               8 875   
Cost of sales                                                                                                                                       (1 581)   
Other Income                                                                                                                                            638   
Operating expenses                                                                                                                                    (893)   
Operating profit                                                                                                                                      7 039   
Finance Costs                                                                                                                                       (7 409)   
Loss before taxation                                                                                                                                  (370)   
Taxation                                                                                                                                                242   
Loss after tax                                                                                                                                        (127)   
Gain on measurement to fair value less cost to sell                                                                                                  16 837   
Tax thereon                                                                                                                                         (1 399)   
Profit  for the period from discontinuing operations                                                                                                 15 311   

Cash flows from discontinued operations - 15 months ended 30 June 2018                                                                             Reviewed   
                                                                                                                                                    30 June   
                                                                                                                                                       2018   
                                                                                                                                                      R'000   
Net cash flows from operating activities                                                                                                            (1 235)   
Net cash flows from investing activities                                                                                                              2 080   
Net cash flows from financing activities                                                                                                              4 970   
Net cash flow movement                                                                                                                                5 815   

3.2. DISPOSAL OF SUBSIDIARY'S BUSINESS

The Board announced on 19 June 2018 the disposal of the going concern business of ROI, a 100% owned
subsidiary of Ecsponent. The disposal of the ROI business as a going concern was for a total
consideration of R7.3 million with effect from 18 June 2018.

Aggregated business disposals for the period                                                                                                       Reviewed   
                                                                                                                                                    30 June   
                                                                                                                                                       2018   
                                                                                                                                                      R'000   
Property, plant and equipment                                                                                                                           208   
Intangible assets                                                                                                                                     1 165   
Trade and other receivables                                                                                                                           1 990   
Cash and cash equivalents                                                                                                                               147   
Trade and other payables                                                                                                                            (1 634)   
Total identifiable net assets derecognised                                                                                                            1 876   
Profit on disposal included in continued operations                                                                                                   5 424   
Consideration receivable                                                                                                                              7 300   
Net cash flow on disposal                                                                                                                                     
Purchase consideration (*)                                                                                                                                -   
Net cash (balance)/overdraft disposed off                                                                                                             (147)   
                                                                                                                                                      (147)   

* The purchase consideration is payable through the settlement of a loan. All cash flow movements
  are therefore recognised through the Other Financial Asset and/or Liabilities movements.

3.3. LOSS OF CONTROL - INVESTMENT IN SUBSIDIARY DECONSOLIDATED AND CLASSIFIED AS INVESTMENT IN ASSOCIATE

 The 50% investment in CryoSave SA (Pty) Ltd, its 100% subsidiary, CryoSave Namibia (Pty) Ltd and
 Salveo Swiss Technologies Limited was in the past classified as investments in subsidiary because the
 Group was exposed, or held rights, to variable returns from its involvement with these companies and
 held the ability to affect those returns through its power over the investments. The management team
 reported directly into the Ecsponent Group Executive structure for strategic guidance and assistance and
 the Group provided disproportionate financing to the subsidiaries.

 Effective on 1 April 2018, the Group entered into an agreement with the 50% non-controlling
 shareholder which resulted in Ecsponent foregoing the power to direct the activities of these
 investments. As a result, the judgement applied previously whereby the 50% investment in the
 mentioned companies was classified as investments in subsidiaries was reconsidered. Due to the
 changes brought about by the agreement, it was concluded that the Group had lost control from the
 effective date of the agreement.

 Consequently, the investment in the mentioned companies was deconsolidated as from 1 April 2018 and
 classified as investments in associates.

Aggregated business disposals for the period                                                                                                       Reviewed   
                                                                                                                                                    30 June   
                                                                                                                                                       2018   
                                                                                                                                                      R'000   
Property, plant and equipment                                                                                                                         4 036   
Deferred tax asset                                                                                                                                    8 552   
Trade and other receivables                                                                                                                          14 623   
Cash and cash equivalents                                                                                                                               793   
Loans from group companies                                                                                                                         (33 094)   
Deferred income                                                                                                                                     (3 272)   
Trade and other payables                                                                                                                            (8 696)   
Tax payable                                                                                                                                            (12)   
Total identifiable net liabilities                                                                                                                 (17 070)   
Non-controlling interest                                                                                                                              9 276   
Net liabilities derecognised                                                                                                                        (7 794)   
Amount capitalised to Investments in Associate                                                                                                        7 794   
Net cash flow on disposal                                                                                                                                     
Net cash balance disposed off                                                                                                                         (793)   
                                                                                                                                                      (793)   

4. INVESTMENT IN ASSOCIATE

The following investments in associates were made during the period under review:

Ecsponent Financial Services Zambia
The Group diluted its shareholding in Ecsponent Financial Services (Pty) Ltd from 100% to 25% and
elected to treat the 25% investment as an equity accounted Investment in an Associate as defined in
IAS 28.

Cryo-Save SA and Salveo Swiss Technologies
As detailed in the loss of control note above, the Group deconsolidated its investment in CryoSave SA
(Pty) Ltd and Salveo Swiss Technologies Limited from 1 April 2018. These investments were revalued
to fair value and classified as an equity accounted Investment in Associates from the deconsolidation
date.

The Board announced on 29 June 2018 the disposal of the Group's investment in CryoSave SA and
Salveo for R10 million resulting in a profit on disposal of R553 783.

                                                                                                                                                   Reviewed   
Investment in associate consists of:                                                                                                                30 June   
                                                                                                                                                       2018   
                                                                                                                                                      R'000   
Cost of investment in associate                                                                                                                      22 119   
Reclassification from investment in subsidiary                                                                                                       10 000   
Equity accounted post-acquisition loss                                                                                                              (1 173)   
                                                                                                                                                     30 946   
Disposal of investment in associate                                                                                                                 (9 446)   
Investment in equity accounted investment                                                                                                            21 500   

Acquisition date fair value of consideration paid                                                                                                             
Cash consideration paid                                                                                                                              10 000   


                                                                                                                                 Proportion of ownership
                               Place of                                                                                               interest (%)
Name of associate              incorporation                                                                                  Jun 2018             Mar 2017
Ecsponent Financial Services                                                                                                                                  
(Pty) Ltd                      Zambia                                                                                              25%                 100%   
Cryo Save SA (Pty) Ltd**       South Africa                                                                                         0%                  50%   
Salveo Swiss Technologies                                                                                                                                     
Limited**                      South Africa                                                                                         0%                  50%   

*   The associate is accounted for using the equity method in these consolidated financial statements.
**  Associates reclassified from subsidiaries and subsequently disposed.

5.   LOANS AND ADVANCES

                                                                                                                                    Reviewed        Audited
                                                                                                                                     30 June       31 March
                                                                                                                                        2018           2017
                                                                                                                                       R'000          R'000


 Loans and advances carried at amortised cost

 Business credit
                                                                                                                                   1,281,443        750,788
 The Business Credit service offering offers commercial advances
 that are secured, via a cession of the underlying equity and/or
 assets, target security cover ranging between 100 - 150%. These
 advances bear interest at fixed interest rates commensurate with
 the client's risk profile, ranging between 24 - 30% (2017: 24 -
 30%). Repayment terms are facility specific, ranging between 2 - 5
 years.
 Supply chain funding                                                                                                                 36,788              -
 The Enterprise Development and Supply Chain Advances service
 offerings are of a short-term nature with an average transaction
 cycle being 30 to 45 days. These advances provide annualised
 returns of between 31.2% to 54.0%. Ecsponent secures the
 exposure via the transactions terms and where appropriate
 additional covering security is obtained.
 Total loans and advances                                                                                                          1,318,231        750,788
 Credit impairments                                                                                                                 (79,879)        (2,137)
 Impairments for non-performing loans and advances                                                                                  (22,289)              -
 Impairments for performing loans and advances                                                                                      (57,590)        (2,137)
 Net loans and advances after credit impairments                                                                                   1,238,352        748,651
 Non-current assets                                                                                                                  803,599        667,089
 Current assets                                                                                                                      434,753         81,562
 Total loan and advances                                                                                                           1,238,352        748,651
                                                                                                                                   
6.   OTHER FINANCIAL ASSETS

                                                                                                                                    Reviewed        Audited
                                                                                                                                     30 June       31 March
                                                                                                                                        2018           2017
                                                                                                                                       R'000          R'000

At fair value through profit and loss - designated
Listed shares - MyBucks                                                                                                              236 960        232 980
During the current financial period, the Group acquired                                                                                             
additional foreign denominated listed equities of the MyBucks                                                                                       
S.A Limited ("MyBucks") to the value of R59.2 million.                                                                                              
Mybucks is a FinTech company listed on the Frankfurt stock                                                                                          
exchange. The acquisition increased Ecsponent's ownership to                                                                                        
12.1% of the issued share capital of MyBucks as at 30 June                                                                                          
2018.                                                                                                                                               
Listed shares - Go Life International                                                                                                 43 740              -   
The Group acquired 68.2 million ordinary shares in Go Life                                                                                                    
International, a healthcare company registered in the Republic                                                                                                
of Mauritius. The company's primary listing is on the Mauritian                                                                                               
stock exchange with a secondary listing on the JSE's Alt X.                                                                                                   
Preference shares                                                                                                                    100 000              -   
The preference share investment comprises 1 666 667                                                                                                           
preference shares held in VSS Financial Services (Pty) Ltd                                                                                                    
("VSS"). The preference shares are cumulative perpetual                                                                                                       
instruments with VSS holding the right to redeem or to convert                                                                                                
to an alternative class of share. Dividends are declared at the                                                                                               
discretion of the VSS board.                                                                                                                                  
Capitis Equities                                                                                                                     146 857              -   
The Group invested in a Section 12J company, Capitis Equities                                                                                                 
(Pty) Ltd. A 19% ownership stake was purchased in the entity.                                                                                                 
The Group invested significantly into the qualifying 12 J                                                                                                     
investment portfolio of Capitis Equities (Pty) Ltd. The Board                                                                                                 
assesses the portfolio of investments on an annual basis.                                                                                                     
Option agreement                                                                                                                     238 904              -   
In June 2018, the Group entered into a put option agreement                                                                                                   
whereby it holds an unconditional and non-exclusive option to                                                                                                 
require the Option Issuers to purchase, jointly or severally, all                                                                                             
or any portion of the Option Shares, being the total number of                                                                                                
MyBucks S.A ordinary shares held by Ecsponent as at 31                                                                                                        
December 2021, at an Option Strike price of EUR18.                                                                                                              
The option can be exercised directly after the Option Period's                                                                                                
expiration date being 31 December 2021, during the 30-day                                                                                                     
Option Exercise Period which follows. The Black-Scholes model                                                                                                 
was used to value the investment at year end.                                                                                                                 
                                                                                                                                     766 461        232 980  
Loans and receivables carried at amortised cost
Listed bond                                                                                                                           65 727              -   
Bond issued by GetBucks Botswana, listed on the Botswana                                                                                            
stock exchange. The bond has a fixed coupon rate of 18% per                                                                                         
annum and matures on 31 December 2021.                                                                                                              
                                                                                                                                      65 727              -   
TOTAL OTHER FINANCIAL ASSETS                                                                                                         832 188        232 980   
Non-current assets                                                                                                                                            
At fair value through profit and loss - designated                                                                                   485 761              -   
At amortised cost                                                                                                                     51 471              -   
                                                                                                                                     537 232              -   
Current assets                                                                                                                                                
At fair value through profit and loss - designated                                                                                   280 700        232 980   
At amortised cost                                                                                                                     14 256              -   
                                                                                                                                     294 956        232 980   
TOTAL OTHER FINANCIAL ASSETS                                                                                                         832 188        232 980   

7. PREFERENCE SHARE CAPITAL

Ecsponent's business model requires funding for both organic business growth and to pursue further
acquisitions. Funding is deployed in the growth of credit assets and the acquisition of new equity
investments. Preference shares are considered a reliable source of funding for these on-going business
needs and accordingly the Company has registered a R5 billion preference share programme. The
Programme was approved by the JSE on 8 September 2014 and again on 15 December 2015. By 30 June
2018 Ecsponent Limited had received subscription investments of R1.3 billion from the South African
programme and a further combined R262 million in the Swaziland and Botswana markets.

The preference share capital is classified as debt and separately disclosed in the Summarised Consolidated
Statement of Financial Position as at 30 June 2018 in line with the principles of IFRS. Consequently, the
preference share dividends are classified as finance costs and disclosed as such in the Condensed
Consolidated Statement of Profit and Loss and Other Comprehensive Income for the 15 months ended 30 June 2018.

                                                                                           Reconciliation of the number of preference shares in issue:
                                                                                                                         Ecsponent Limited (South Africa)   
                                                                                        Class A       Class B       Class C    Class D    Class E   Class G   
Reported at the                                                                         415 595     1 657 701     6 024 439          -          -         -   
beginning of the                                                                                                                                              
period                                                                                                                                                        
Issue of preference                                                                     367 474     1 859 403     1 320 075    798 925    741 970    20 210   
shares during the                                                                                                                                             
period                                                                                                                                                        
                                                                                        783 069     3 517 104     7 344 514    798 925    741 970    20 210   
Weighted average                                                                          96.80        100.00        100.00     100.00     100.00    100.00   
issue price per                                                                                                                                               
share (Rand)                                                                                                                                                  

                                                                                                                              Ecsponent Limited (Swaziland)
                                                                                                                                 Class A            Class E

Reported at the                                                                                                               53 195 000         53 727 700   
beginning of the                                                                                                                                              
period                                                                                                                                                        
Issue of preference                                                                                                           95 013 000         38 978 000   
shares during the                                                                                                                                             
period                                                                                                                                                        
                                                                                                                             148 208 000         92 705 700   
Weighted average                                                                                                                    1.00               1.00   
issue price per                                                                                                                                               
share (converted to                                                                                                                                           
Rand)                                                                                                                                                         
                                                                                                                               Ecsponent Limited (Botswana)   
                                                                                                                                 Class A            Class B   
Reported at the                                                                                                               11 750 000          2 067 000   
beginning of the                                                                                                                                              
period                                                                                                                                                        
Repayment of                                                                                                                 (1 400 000)           (40 000)   
preference shares                                                                                                                                             
during the period                                                                                                                                             
                                                                                                                              10 350 000          2 027 000   
Weighted average                                                                                                                                              
issue price per                                                                                                                     1.00               1.00   
share (Pula)                                                                                                                                                  
Weighted average                                                                                                                    1.27               1.27   
issue price per                                                                                                                                               
share (Rand)                                                                                                                                                  

8. OTHER FINANCIAL LIABILITIES

The other financial liabilities category incorporates external funding facilities with either banks, individuals
or corporate funding entities. Provided below is the detail regarding the Group's other financial liabilities:

                                                                                                                                        Reviewed    Audited   
                                                                                                                                         30 June   31 March   
                                                                                                                                            2018       2017   
                                                                                                                                           R'000      R'000   
Held at amortised cost                                                                                                                                        
Scipion Active Trading Fund                                                                                                              138 384          -   
USD 10 million term loan facility that bears interest                                                                                                         
at 10% plus 12-month LIBOR screen rate                                                                                                            
amortised and payable monthly. 50% of the capital                                                                                                             
is payable by May 2021 and the remaining 50% is                                                                                                               
payable by July 2021.                                                                                                                                         
Ever Prosperous Worldwide Limited                                                                                                         72 432          -   
USD 6 million loan is unsecured, bears interest at                                                                                                       
2.5% per month and is repayable by 31 December                                                                                                           
2018.                                                                                                                                                    
Colyn Promisor                                                                                                                            12 138          -   
This loan bears interest at 8% per annum, interest                                                                                                            
is payable monthly, and the capital is repayable by                                                                                                           
20 March 2021.                                                                                                                                                
Esperite AG (formerly Cryo-Save AG)                                                                                                            -       3912   
Cryo-Save Labs                                                                                                                                 -      1 671   
Esperite NV (formerly Cryo-Save NV)                                                                                                            -        494   
Esperite NV (formerly Cryo-Save NV)                                                                                                            -        120   
GetBucks (Pty) Ltd (Botswana)                                                                                                                  -      4 241   
Standard Bank - Property bond                                                                                                                  -        909   
TOTAL OTHER FINANCIAL LIABILITIES                                                                                                        222 954     11 347   
Total included in non-current liabilities                                                                                                150 522        871   
Total included in current liabilities                                                                                                     72 432     10 476   

9. RECONCILIATION OF THE TAX EXPENSE

Reconciliation between the applicable tax rate and average effective tax rate.

                                                                                                                                        Reviewed    Audited   
                                                                                                                                         30 June   31 March   
                                                                                                                                            2018       2017   
                                                                                                                                               %          %   
Applicable tax rate                                                                                                                        28.00      28.00   
Disallowable charges - preference share dividends                                                                                          26.73      22.30   
Disallowable charges - penalties                                                                                                            0.01       0.54   
Exempt income                                                                                                                             (0.22)          -   
Income from equity accounted investments                                                                                                  (0.51)          -   
Previously unrecognised deferred tax asset                                                                                                     -     (0.48)   
Effect of unused tax losses and tax offsets not                                                                                                -     (4.00)   
recognised as deferred tax asset                                                                                                                              
Different tax rates applied in foreign subsidiaries                                                                                       (2.18)       0.05   
Capital gains tax                                                                                                                         (5.10)    (24.88)   
                                                                                                                                           46.73      21.53   

10. EARNINGS AND FULLY DILUTED EARNINGS PER SHARE

                                                                                                                                   Reviewed         Audited
                                                                                                                                    30 June        31 March   
                                                                                                                                       2018            2017   
BASIC AND HEADLINE EARNINGS                                                                                                           R'000          R' 000   
Basic earnings                                                                                                                      102 180          78 012   
Headline earnings                                                                                                                    75 473             132   
Basic and diluted basic earnings per share (cents)                                                                                  9.46506         8.38028   
attributable to equity holders of the parent                                                                                                                  
Headline and diluted headline earnings per share                                                                                    6.99117         0.01423   
(cents) attributable to equity holders of the parent                                                                                                      
Number of shares in issue                                                                                                     1 079 555 364   1 079 550 795 
Weighted average number of shares                                                                                             1 079 551 326     930 907 328   
RECONCILIATION BETWEEN BASIC EARNINGS AND                                                                                                                 
HEADLINE EARNINGS                                                                                                                                         
Basic earnings                                                                                                                      102 180          78 012   
IAS 16 Loss on disposal of property, plant and                                                                                            5             254   
equipment                                                                                                                                                     
IAS 38 Impairment of intangible assets                                                                                                  811               -   
IFRS 3 Gain on disposal of subsidiary and/or associate                                                                                (399)        (11 495)   
IFRS 5 Gain on disposal groups held for sale                                                                                        (3 905)        (52 338)  
IFRS 5 Gain on disposal of discontinued operations                                                                                 (15 438)        (14 301)   
IFRS 10 Gain on the loss of control and deconsolidation                                                                             (7 780)               -   
of subsidiary                                                                                                                                                 
Headline earnings                                                                                                                    75 474             132   

The calculation of earnings per share ("EPS") is based on the profit for the period attributable to ordinary
shareholders and the weighted average number of ordinary shares in issue during the period. Headline
earnings per share ("HEPS") are calculated in accordance with Circular 4/2018 issued by the South
African Institute of Chartered Accountants.

11. RELATED PARTY DISCLOSURES

The Group has transacted with the following related parties during the period:

 Relationship
 Shareholders with significant             Mason Alexander (Pty) Ltd - Represented by G. Manyere
 influence                                 (also being a Non-executive director on the MyBucks SA
                                           Group Board)

 Associate companies where the
 Company has significant influence         Ecsponent Financial Services Ltd (Zambia)

Below is a summary of the relevant balances and transactions in this regard:

                                                                                                                                   Reviewed         Audited
                                                                                                                                    30 June        31 March   
                                                                                                                                       2018            2017   
                                                                                                                                      R'000           R'000   
Related party balances                                                                                                                                        
Investments in:                                                                                                                                               
Associate companies                                                                                                                  21 500               -   
Loan accounts owing (to):                                                                                                                                     
Esperite AG                                                                                                                               -         (5 583)   
Esperite NV                                                                                                                               -           (614)   
Related party transactions                                                                                                                                    
Associate companies                                                                                                                 (1 173)               -   

12. FINANCIAL INSTRUMENTS - FAIR VALUE AND RISK MANAGEMENT

Financial instruments measured in the abridged audited consolidated Statement of Financial Position at
fair value require certain disclosures which are set out below.

Financial instrument carried at fair value                                                                                              Reviewed    Audited   
                                                                                                                                         30 June   31 March   
                                                                                                                                            2018       2017   
Listed equities (Level 1)                                                                                                                280 700    232 980   
Other financial assets (Level 3)                                                                                                         485 602          -  

Financial instrument carried at fair value (level 3)                                                                                    Reviewed    Audited   
                                                                                                                                         30 June   31 March   
                                                                                                                                            2018       2017   
Opening balance at the start of the period                                                                                                     -      8 874   
Purchases and revaluations                                                                                                               259 900        126   
Foreign currency loss recognised in profit and loss                                                                                        6 108              
Fair value loss recognised in profit and loss                                                                                            232 796              
Impairment of financial asset                                                                                                           (13 202)              
Disposal of financial instrument                                                                                                               -    (9 000)   
Balance at the end of the period                                                                                                         485 602          -   

Financial instrument carried at fair value (level 1)                                                                                    Reviewed    Audited   
                                                                                                                                         30 June   31 March   
                                                                                                                                            2018       2017   
Opening balance at the start of the period                                                                                               232 980          -   
Purchases                                                                                                                                 88 234    262 570   
Fair value loss recognised in profit and loss                                                                                           (82 557)              
Revaluation                                                                                                                                        (29 590)   
Foreign exchange                                                                                                                          42 043          -   
Balance at the end of the period                                                                                                         280 700    232 980   

Financial Instruments
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 is
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.

Financial Risk Management
The Group's financial risk management objectives and policies are consistent with those disclosed in the
consolidated annual financial statements as at and for the period ended 30 June 2018.

13. SUMMARY CONDENSED CONSOLIDATED SEGMENTAL INFORMATION

The segments identified are based on the operational and financial information reviewed by management for performance assessment and resource
allocation.

The Group rationalisation as concluded in prior periods also resulted in a change to the basis of operational segmentation and the basis of measurement
of segment profit or loss from the 2018 annual financial statements.

The Group has the following operating segments:
-   Credit: The Credit operations provide secured credit funding to commercial clients via two specific products. Business credit, in the form of
    medium term loans, subject to appropriate security cover and Supply Chain and/or Enterprise Development solutions with the aim to integrate
    vendors into the supply chain.
-   Investment Services: The operations provide financial investment products to the retail market.
-   Equity Holdings: Strategic investments in well managed, profit focussed companies.
-   Corporate: This segment represents the Group's corporate head office which provides shared services across the operational segments.

Period ended 30 June 2018

                                                                                                    Reportable segments
                                             Investment                                                                   Total  Discontinued
                                              Services   Equity Holdings        Credit   Corporate   Eliminations     Continued    operations         Total
                                                 R'000             R'000         R'000       R'000          R'000         R'000         R'000         R'000   
External revenues                                3,294            39,336       421,781       2,573              -       466,984       (8,875)       458,109   
Inter-segment revenue                          359,115             2,000        75,795      35,411      (472,321)             -             -             -   
Segment revenue                                362,409            41,336       497,576      37,984      (472,321)       466 984       (8,875)       458,109   
Depreciation and amortisation                    (143)           (1,476)          (21)       (360)            139       (1,861)           139       (1,722)   
Fair value adjustments                               -           157,805             -           -        (3,854)       153,951             -       153,951   
Non-cash transactions - foreign currency 
gain (loss)                                        246           (7,341)        29,803           -         15,710        38,418             -        38,418   
Segment operating profit / (loss)              288,994           138,955       363,354         724      (379,578)       412,449       (7,039)       405,410   
Finance costs                                (237,713)           (8,368)     (409,965)     (2,856)        398,317     (260,585)         7,409     (253,176)   
Taxation                                      (45,368)          (28,963)        11,127         583        (7,191)      (69,812)         (242)      (70,054)   
Segment profit / (loss) after tax                5,913           101,624      (35,484)     (1,549)         11,548        82,052           128        82,180   
Segment assets                                 375,771           617,150     1,422,870      16,307      (196,294)     2,235,804             -     2,235,804   
Segment liabilities                          (248,244)         (167,885)   (1,856,513)    (13,923)        244,262   (2,042,303)             -   (2,042,303)   
Capital expenditure                              1,063                42           110       2,314              -             -             -         3,531   
Revenues from major clients:                                                                                                                                  
- Major client 1                                     -                 -       116,061           -              -                           -       116,061   
- Major client 2                                    -                 -       108,892           -              -                           -       108,892   


                                                                    Geographic segments
                                                                                                                          Total  Discontinued
                                South Africa   Botswana   Swaziland Namibia   Mauritius     Zambia   Elimination      Continued    operations         Total
                                       R'000      R'000       R'000   R'000       R'000      R'000          R'00          R'000         R'000         R'000   
External revenues                    386,926     48,115      31,267     508         168          -                      466,984       (8,875)       458,109   
Inter-segment revenue                405,628          -      66,693       -           -          -      (472,321              -             -             -   
Segment revenue                      792,555     48,115      97,960     508         168          -      (472 321        466,984       (8,875)       458 109   
Depreciation and
amortisation                         (1,960)          -        (40)       -           -          -            13        (1,861)           139       (1,722)   
Fair value adjustments                15,763    142,042           -       -           -          -        (3,854        153,951             -       153,951   
Non-cash transactions -                                                                                                                                    
foreign currency gain
(loss)                                 4,050     18,658           -       -           -          -         15,710        38,418             -        38,418   
Segment operating
profit / (loss)                      550,965    147,491      85,551     (5)       8,025          -      (379,578)       412,449       (7,039)       405,410   
Finance costs                      (511,594)   (53,704)    (85,274)       -     (8,330)          -        398,317     (260,585)         7,409     (253,176)   
Taxation                            (41,785)   (20,683)       (163)       2           8          -        (7,191)      (69,812)         (242)      (70,054)   
Segment profit / (loss)
after tax                            (2,414)     73,104         114     (3)       (297)          -         11,548        82,052           128        82,180   
Segment assets                     1,448,080    795,912     171,965     194       2,112     13,835      (196,294)     2,235,804             -     2,235,804   
Segment liabilities              (1,694,720)  (241,354)   (182,588)   (304)   (150,675)   (16,924)        244,262   (2,042,303)             -   (2,042,303)   
Capital expenditure                    3,524          -           7       -           -          -              -             -             -         3,531   
Revenues from major                                                                                                                                           
clients:                                                                                                                                                      
- Major client 1                      70,761     14,350      30,950       -           -                         -             -             -       116,061   
- Major client 2                     108,892          -           -       -           -                         -             -             -       108,892   

Period ended 31 March 2017                                                                                                                             
                                                                 Reportable segments                                                                   
                                                                     Financial     Private                                         Discontinued     
                                                                      Services      Equity  Collections  Corporate  Eliminations     operations       Total       
                                                                         R'000       R'000        R'000      R'000         R'000          R'000       R'000   
External revenues                                                      217,905      74,621        3,139     70,972             -       (44,843)     321,795   
Inter-segment revenue                                                  106,601       2,027        4,782     52,489     (165,900)              -           -   
Segment revenue                                                        324,506      76,649        7,921    123,462     (165,900)       (44,843)     321,795   
Segment operating profit / (loss)                                      169,149    (18,106)        2,866     63,112        19,170        (7,005)     229,186   
Finance costs                                                        (230,073)     (8,257)      (5,943)   (83,995)       169,954         27,964   (130,351)   
Depreciation and amortisation                                          (1,237)     (2,202)        (491)      (342)           218            892     (3,161)   
Fair value adjustments                                                       -    (11,017)            -          -             -              -    (11,017)   
Non-cash transactions - foreign                                                                                                                               
currency gain  (loss)                                                 (21,662)         337            -    (1,233)             -            204    (22,353)   
Taxation                                                                12,243       3,848          837   (23,339)      (12,497)        (4,187)    (23,094)   
Segment profit / (loss) after tax                                       56,817    (21,307)      (2,063)    (4,972)        39,101        (2,852)      64,724   
Segment assets                                                       2,193,710     293,007        2,380     46,237   (1,320,517)      (124,313)   1,090,504   
Segment liabilities                                                (2,077,065)   (319,333)     (17,988)   (40,679)     1,335,804        130,690   (988,571)   
Capital expenditure                                                      3,066         922          369      1,156             -        (3,834)       1,679   
Revenues from major clients:                                                                                                                                  
- Major client 1                                                       110,516           -            -          -             -              -     110,516   
- Major client 2                                                        44,355           -            -          -             -              -      44,355   
                      
                                                        Geographic segments                                                                              
                                                                South                                                              Discontinued       Total   
                                                               Africa   Botswana   Swaziland   Namibia     Zambia   Eliminations     operations    Reported   
                                                                R'000      R'000       R'000     R'000      R'000          R'000          R'000       R'000   
                                                                                                                                             
External revenues                                             271,332     74,745      18,044       626      1,891              -       (44,843)     321,795   
Inter-segment revenue                                         135,408        555      29,938         -          -      (165,900)              -               
Segment revenue                                               406,740     75,300      47,981       626      1,891      (165,900)       (44,843)     321,795   
Segment operating profit / (loss)                             159,115     28,277      24,418        18    (4,075)         19,170        (7,005)     219,919   
Finance costs                                               (247,170)   (46,648)    (24,311)         -    (3,656)        169,954         27,964   (123,868)   
Depreciation and amortisation                                 (2,915)      (428)       (259)         -      (670)            218            892     (3,161)   
Fair value adjustments                                              -   (11,017)           -         -          -              -              -    (11,017)   
Non-cash transactions - foreign                                                                                                                               
currency gain (loss)                                         (22,558)          -           -         -          -              -            204    (22,353)   
Taxation                                                     (11,129)      2,150       (126)       (6)      2,700       (12,497)        (4,187)    (23,094)   
Segment profit / (loss) after tax                              40,913    (7,657)         222        12    (5,015)         39,101        (2,852)      64,724   
Segment assets                                              1,944,539    425,343     152,731       188     12,533    (1,320,517)      (124,313)   1,090,504   
Segment liabilities                                       (1,858,273)  (427,578)   (153,800)     (294)   (15,120)      1,335,804        130,690   (988,571)   
Capital expenditure                                             1,279      1,798         399         -      2,037              -        (3,834)       1,679   
Revenues from major clients:                                                                                                                           
- Major client 1                                              105,771      4,745           -         -          -              -              -     110,516   
- Major client 2                                               35,256          -       9,099         -          -              -              -      44,355   

14. ACQUISITIONS AND DISPOSALS

The following acquisitions / investments were concluded within the Group's Equity Holdings operations
during the financial period:

VSS preference share
R100m investment in cumulative perpetual preference shares issued by VSS Financial Services (Pty) Ltd a
wholly owned subsidiary of MyBucks SA Limited.

MyBucks SA Limited
Investment of R59.2 million in an additional 444 000 MyBucks SA Limited shares at a subscription price of
Euro 9.00 per share. Total investment in MyBucks SA Limited ordinary shares after the transaction amounts
to 1 568 884 shares comprising a total holding of 12.1%.

Capitis Equities
Acquired 19% of the ordinary voting equity of Capitis Equities (Pty) Ltd (Capitis), a black woman owned
(as defined by the Black Economic Empowerment Act 2003) venture capital company, with specialist skills,
focused on the acquisition and management of equity investments.

The Board further approved an immediate investment of R156 million into the Capitis Section 12J SMME
fund. At 30 June 2018 the approved investment of R156 million was placed with Capitis. The Board
approved a further investment of R244 million by the end of 30 June 2019 which would increase the total
investment to a maximum of R400 million. The additional investment planned for 2019 financial period is
subject to shareholders' approval in general meeting.

Go Life International
Ecsponent acquired 68.2 million shares comprising 6.78% of Go Life International for R24.1m. Go Life is a
healthcare group of companies with its primary listing in Mauritius and a secondary listing on the JSE AltX.
Go Life has established operations in frail care, nutraceuticals and the cosmeceutical industry.

Ecsponent disposed of its 50% shareholding in the biotechnology companies Cryo-Save SA, Cryo-Save
Namibia as well as Salveo Swiss Technologies Limited to Go Life International for R10 million.

ROI
Ecsponent disposed of the media monitoring business housed in ROI a 100% subsidiary of the Group for
R7.3million.

15. CORPORATE ACTIONS

In addition to the transactions mentioned above the following corporate actions were implemented during
the period under review with the objective of expanding the Group's Preference Share product range
thereby providing additional investment products with enhanced flexibility to clients in response to market
demands.

Amendments to Classes D, E, F and G Preference Shares
The Board proposed amendments to the Company's Memorandum of Incorporation ("MOI") amending the
terms of the Company's unissued Preference Shares comprising Class D, E, F and G. Shareholders approved
the proposed amendments on 14 August 2017 via written consent in terms of Section 60 of the Companies Act.

A prospectus was subsequently issued during September 2017 offering Class D, E and G Preference Shares
to the public. 10 000 Class D, 10 000 Class E and 2 500 Class G Preference Shares were taken up in the
initial offer and listed on 4 October 2017. Due to the conversion rights to ordinary shares in specific
circumstances held by the preference shares, as defined in the company's MOI, the issue of Class D and E
preference shares was limited under the directors' general authority to issue ordinary shares.

At the general meeting held on 27 October 2017 shareholders ratified the initial public offering noted above,
approved further issues of class D and E preference shares under the Groups' preference share programme
and provided a general authority to issue ordinary shares in terms of the preference share rights to convert.

Specific approval for the issue of convertible Class G Preference Shares was previously obtained from
shareholders at a general meeting held on 3 May 2016.

Amendments to Classes A, B and C Preference Shares
The Board proposed further amendments to the Company's MOI amending the terms of the Class A, Class
B and Class C Preference Shares to incorporate voluntary redemption terms at the option of the Company.

Ordinary shareholders and Preference shareholders with investments in the effected Class A, B and/or C
Preference Shares approved the proposed amendments to the MOI at a general meeting held on 2
November 2017.

16. EVENTS AFTER THE REPORTING PERIOD

The directors are not aware of any material event, other than the matters listed below, which occurred
after the reporting date and up to the date of this report, which require disclosure.

The Board announced a number of transactions prior to 30 June 2018, which at the reporting date remained
subject to suspensive conditions. These transactions are expected to be concluded during the first half of
the 30 June 2019 financial year, subject to achieving the conditions precedent.

Below we have summarised the transactions and the status at the date of this report.

Event after the reporting date                         Status of transaction at the date of issue of
                                                       this report

R400m investment in Capitis
On 23 May 2018 the board announced a proposed          The prerequisite number of eligible to vote
investment of up to R400m in Capitis Equities (Pty)    shareholders approved the proposed investment of
Ltd ("Capitis") by the end of the 30 June 2019         up to R400 million in Capitis by the end of the next
financial year.                                        financial year at a general meeting held at the
                                                       Company's registered office on 5 September 2018.
The board additionally announced its approval, as
permitted under the JSE Listing Requirements, of       At the date of this report, the transaction is
an initial investment of up to R156.5 million of the   unconditional, but no further investments have
total R400 million proposed investment in Capitis.     been made in Capitis. The balance of R243.5
It furthermore confirmed that any funds invested       million increasing the total investment up to the
in excess of the R156.5 million approved amounts       proposed R400 million maximum remains available
are subject to shareholders' approval as required      for investment during the balance of the June 2019
by the JSE.                                            financial year subject to the directors and
                                                       investment committee discretion.
At 30 June 2018, the Company had invested R156
million in Capitis in terms of the Board approval.
The proposed investment above this value up to
the R400 million maximum, however, remained
conditional, subject to Ecsponent shareholders'
approval.

352 612 MyBucks shares acquisition
The board announced on 23 May 2018 the                 The Group's bankers have submitted an approval
proposed acquisition of 352 612 MyBucks shares         motivation to the SARB and are awaiting a formal
from DTM Capital (Pty) Ltd ("DTM"), in settlement      response.
of a BWP65 million Business Credit loan owing by
DTM to Ecsponent Limited Botswana.                     The final condition will be satisfied on confirmation
                                                       of SARB's approval.
The proposed investment comprises 2.720% of
MyBucks' issued share capital and would increase
the Group's interest in MyBucks from 12.100% to
14.820%.

At 30 June 2018, the transaction remained
conditional, subject to South African Reserve Bank
("SARB") approval.



1 145 998 MyBucks share acquisition
The board announced on 23 May 2018 the                 The prerequisite number of eligible to vote
proposed acquisition of 1 145 998 MyBucks shares       shareholder approved the transactions in terms of
from Coronado Trading 258 CC ("Coronado"), in          the JSE listing requirements in a general meeting
settlement of a R260 million Business Credit loan      held at the company's registered office on 5
owing by Coronado to Ecsponent Treasury Services       September 2018.
(Pty) Ltd.
                                                       The Group's bankers have submitted an approval
The proposed investment comprises 8.839% of            motivation to the SARB and are awaiting a formal
MyBucks' issued share capital and would increase       response.
the Group's interest in MyBucks from 12.100% to
20.939%.                                               The final condition will be satisfied on confirmation
                                                       of SARB's approval.
At 30 June 2018, the transaction remained
conditional, subject to Ecsponent shareholders'
and the SARB approval.

Related party transactions
On 22 May 2018 the Board advised shareholders of       At the date of this report the required shareholders'
a strategy of investing in assets that would inter     approval for the related party transaction remains
alia provide the Group with medium to long term        outstanding, and the transactions remain
capital growth, reduce the balance sheet               conditional.
concertation risk and provide a balance in the
Group's portfolio of assets between shortterm cash     The process of drafting and obtaining JSE approval
generating assets and assets to be held for capital    for the required related party circular is ongoing.
appreciation.                                          This includes the approval request submission to
                                                       the SARB.
On 29 June 2018, the Company announced, in
furtherance of the abovementioned strategy, a
range of transactions. The proposed transactions
trigger the need for a related party circular as
George Manyere, a non-executive director, holds
indirect interests in some of the parties contracting
with Ecsponent.

At 30 June 2018, the transactions remains
conditional, subject to shareholder approval in
terms of the JSE Listing Requirements specific to
related party transactions requiring shareholders'
approval. In addition, elements of the proposed
transactions require SARB approval.

17. DIVIDENDS

No ordinary dividends have been declared or proposed for the year.

The Company has issued and listed three additional classes of Preference Shares. Six classes are now in
issue with the following dividend terms:
-   Class A - 10% fixed rate monthly dividend;
-   Class B - 0% monthly dividend, but redeeming at a rate equal to 170% of the Initial Issue Price;
-   Class C - prime plus 4% floating rate monthly dividend.
-   Class D - 12.5% fixed rate monthly dividend;
-   Class E - 11.25% fixed rate monthly dividend
-   Class G - 10% fixed rate monthly dividend

Preference Share dividends and interest of 241.1 million accrued to investors for the 15 months ended 30
June 2018. The dividends are classified as finance costs and included in the finance cost expense in the
Consolidated Statement of Profit and Loss and Comprehensive Income.

18. CONTINGENCIES

The directors are not aware of any material contingent liability which existed at the reporting date and up
to the date of this report that requires disclosure.

19. DIRECTOR CHANGES

Dirk van der Merwe (previous Group Company Secretary) took over the role of Financial Director from
Bryan Shanahan with effect from 1 February 2018. Eune Engelbrecht resigned as non-executive director
on 31 May 2017.

20. COMPANY SECRETARY

Lezanne du Preez-Cilliers was appointed as the company secretary for the Group on 1 February 2018.

21. AUDITORS

At the Annual General Meeting held on 4 August 2017, shareholders reappointed Nexia SAB&T as the
independent external auditors of the Group for the 2018 financial period.

Shareholders will be requested to reappoint Nexia SAB&T at the next Annual General Meeting for the 30
June 2019 financial year.

22. GOING CONCERN

The directors believe that the Group has adequate financial resources to continue in operation for the
foreseeable future and accordingly the Summarised Consolidated Financial Statements for the 15 months
ended 30 June 2018 have been prepared on a going concern basis. The directors have satisfied themselves
that the Group is in a sound financial position and that it has access to sufficient equity and borrowing
facilities to meet its foreseeable cash requirements.

The directors are not aware of any new material changes that may adversely affect the Group's ability to
continue as a going concern. The directors are also not aware of any material non-compliance with statutory
or regulatory requirements or of any pending changes to legislation which may affect the Group.

For and on behalf of the Board

TP Gregory
Pretoria
18 September 2018

Directors: RJ Connellan* (Chairman), KA Rayner*, BR Topham*, W Oberholzer*, P Matute #, G Manyere
(Vice Chairman) #, TP Gregory (Chief Executive Officer) and DP van der Merwe (Financial Director).
(* Independent Non-Executives)
(# Non-Executive)

Company Secretary: L Du Preez-Cilliers

Registered Office: Fintech Campus, on Lynnwood, Cnr Botterklapper and Ilanga Street, The Willows,
Pretoria East, PO Box 39660, Garsfontein East 0060

Transfer Secretaries: Computershare Investor Services Proprietary Limited, (Registration number
2004/003647/07), 2nd Floor, Rosebank Towers, 15 Biermann Avenue, Rosebank, 2196, (PO Box 61051,
Marshalltown, 2107)

Auditors: Nexia SAB&T Inc.

Sponsor: Questco Corporate Advisory (Pty) Ltd



Date: 18/09/2018 08:55:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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