LETSHEGO HOLDINGS LIMITED - Letshego Holdings Limited Audited Group and Company Annual Financial Statements for The Year Ended 31 December 2020

Letshego Holdings Limited Audited Group and Company Annual Financial Statements for The Year Ended 31 December 2020

Letshego Holdings Limited

Incorporated in the Republic of Botswana

Registration number 98/442

(JSE Code: “BILETS”)

(“Letshego Holdings” or “the Company” or “the issuer”)

This announcement is being released on the Johannesburg Stock Exchange for
information purposes only in respect of Letshego Holdings Limited’s Note
Programme.

LETSHEGO HOLDINGS LIMITED AUDITED GROUP AND COMPANY ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020

The Board of Directors of Letshego Holdings Limited (“the Group”) is pleased to
present the audited consolidated as well as standalone Annual Financial
Statements for the year ended 31 December 2020.

In respect of annual financial statements, the audit reports were unqualified and
contain no modification.

During the preparation of the company’s 2020 annual financial statement, the
company noted the following restatement relating to the company’s previously
published results:

As articulated in the 2020 audited financial statements of the Group, Letshego
Holdings Limited restated (LHL) its 2019 annual financial statement.


Letshego  Holdings Limited  is the majority shareholder of Letshego Holdings
Namibia Limited (LHN), with a shareholding of 78%. LHN in turn has two wholly-
owned subsidiaries; Letshego Micro Financial Services Namibia Ltd (LMFSN) and
Letshego Bank Namibia (LBN).


In August 2011, Letshego Holdings Limited granted a shareholder loan to Letshego
Micro Financial Services Namibia Ltd (LMFSN) of N$600 million, increasing the
loan amount over the years. On 1 March 2018, in order to support the growth of
the Namibian business, LHL made a decision to convert the outstanding shareholder
loan of N$897.1 million into 1000 redeemable non-cumulative preference shares of
N$1.00 each, at par value plus a premium.


During 2019, it was determined that the conversion had not been completed in
accordance with the Companies Act 2004 and the Listing Requirements  of   the
Namibia Stock Exchange, thereby making the transaction irregular and therefore
null and void. The Group sought external legal counsel to assess the options
available, and following deliberations and consultation, the LHL Board opted to
reverse the transaction and restate the LHN and LHL company financial statements
for the years 2018 and 2019. This, in turn, required a restatement of the Group



                                                                                                 
financial statements. The details of the restatement are contained in note 27,”
Prior Year Adjustments”, of the Group Audited Annual Financial statements.


The financial statements can be accessed on the following link:

https://www.letshego.com/sites/default/files/financial-
results/LETSHEGO%20GROUP%20-%20AUDITED%20AFS%2031Mar2021%20-
%20Consolidated%20Financial%20Statements%20year%20end%2031%20December%202020%20.p
df



GABORONE, Wednesday, 31 March 2021



Debt sponsor in South Africa

Kea Sape: 0117215594 or kea.sape@standardbank.co.za

The Standard Bank of South Africa Limited, acting through its Corporate and
Investment Banking division




                                                                                
Date: 31-03-2021 05:30:00
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