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Distribution of integrated report, change statement and notice of annual general meeting
HUGE GROUP LIMITED
(Registration number 2006/023587/06)
Share code: HUG ISIN: ZAE000102042
(“Huge” or “the Company”)
DISTRIBUTION OF INTEGRATED REPORT, CHANGE STATEMENT AND NOTICE OF ANNUAL GENERAL
MEETING
1. Integrated Report and Change Statement
Shareholders are advised that the Company’s Integrated Report, incorporating the audited annual
financial statements (“the Annual Financial Statements”) for the year ended 28 February 2021, has been
distributed to shareholders and is available on the Company’s website at https://hugegroup.com/huge-
group-unlocking-business-opportunity-financials/ with effect from 14 July 2021.
The Company published its reviewed condensed consolidated provisional annual financial results
(“Provisional Results”) on SENS on 31 May 2021.
This announcement outlines the impact of a change in an accounting policy following the release of the
Provisional Results which changes have been incorporated in the subsequent Annual Financial
Statements.
Huge Technologies Proprietary Limited (“Huge Technologies”) is the owner of the telephone line network
used by the customers of Huge Telecom Proprietary Limited (“Huge Telecom”). The change in the
accounting policy relating to its telephone line network asset, from the cost model to the revaluation
model, has been made in order to provide more reliable and accurate information to the users of Huge’s
financial statements.
The Board supports the change in the accounting policy and as a result changes were required to be
made to the statements outlined below.
1.1. Changes to the statement of profit or loss and other comprehensive income
The statement of profit or loss and other comprehensive income was impacted by the following changes:
• An increase in depreciation on the telephone line network of R32 681 400, which is an asset held by
Huge Technologies.
• A reduction of R2 316 448 in the decommissioning expense relating to telephone lines removed from
the telephone line network held by Huge Technologies, and impaired in the current year.
• A recognition of a revaluation gain of R30 264 813 on the telephone line network asset in other
comprehensive income.
• A reclassification of deferred taxation of R8 502 156 from income tax expense in profit or loss to
income tax expense in other comprehensive income.
The overall impact of the above entries did not result in a change in total comprehensive income.
Provisional Results Annual Financial
for the year ended 28 Statements for the year
February 2021 ended 28 February 2021 Change Change
R’000 R’000 R’000 %
Decommissioning of telephone lines (13 846) (11 530) 2 316 (16.7%)
expense
Depreciation and amortisation 11 634 (21 047) (32 681) (280.9%)
Income tax expense (19 478) (10 976) 8 502 (43.7%)
Profit attributable to owners of the
parent 60 431 38 568 (21 863) (36.2%)
Other comprehensive income - 21 863 21 863 100.0%
Income tax expense - (8 502) (8 502) 100.0%
Total comprehensive income 64 277 64 277 - 0.0%
1.2. Changes to the statement of financial position
As a result of the change in accounting policy, a reclassification of R1 677 731 between the deferred tax
liability and deferred tax asset and a reclassification of R21 862 656 between accumulated profit and the
newly created revaluation reserve was made. There was no change to the overall statement of financial
position.
Provisional Results Annual Financial
for the year ended 28 Statements for the year
February 2021 ended 28 February 2021 Change Change
R’000 R’000 R’000 %
Deferred tax asset 43 644 41 966 (1 678) (3.8%)
Deferred tax liability (75 372) (73 694) 1 678 2.2%
Accumulated profit 327 261 305 398 (21 863) (6.7%)
Revaluation reserve - 21 863 21 863 100.0%
Total 295 533 295 533 - -
1.3. Changes to the statement of changes in equity
The changes to the statement of changes in equity relate to the revaluation of the telephone line network
asset and the corresponding tax reclassification from income tax expense in profit or loss to income tax
expense in other comprehensive income. There was no overall change to total equity.
Provisional Results for Annual Financial
the year ended 28 Statements for the year
February 2021 ended 28 February 2021 Change Change
R’000 R’000 R’000 %
Accumulated profit 327 261 305 398 (21 863) (6.7%)
Revaluation reserve - 21 863 21 863 100.0%
Total equity 964 321 964 321 - 0.0%
1.4. Changes to the statement of cash flows
There were no changes to the statement of cash flows due to the changes described above. There was a
reclassification of the share buy back and sale of treasury shares previously disclosed under investing
activities, which has been disclosed under financing activities. There were no changes to the total cash
movement for the year.
Provisional Results Annual Financial
for the year ended 28 Statements for the year
February 2021 ended 28 February 2021 Change %
R’000 R’000 R’000 Change
Cashflow from operating activities 56 018 56 518 500 0.9%
Cashflow from investing activities (49 966) (32 636) 17 330 (34.7%)
Cashflow from financing activities (28 028) (45 858) (17 830) (63.6%)
Total cash movement for the year (21 976) (21 976) - 0.0%
1.5. Changes to HEPS/EPS
As a result of the change in accounting policy, the telephone line network assets revaluation is included
under other comprehensive income and not in the computation of HEPS/EPS. This results in the following
change to previously reported amounts.
Provisional Results Annual Financial
for the year ended 28 Statements for the year
February 2021 ended 28 February 2021 Change Change
R’000 R’000 R’000 %
Basic earnings per share 36.77 23.47 (13.3) (36.2%)
Headline earnings per share 41.98 27.67 (14.3) (34.1%)
Diluted basic earnings per share 36.48 23.28 (13.2) (36.2%)
Diluted headline earnings per
share 41.66 27.45 (14.2) (34.1%)
1.6. Changes to the segment report
As a result of the above-mentioned adjustments, the Telecom Grouping was impacted.
Provisional Results Annual Financial
for the year ended 28 Statements for the year
February 2021 ended 28 February 2021 Change Change
R’000 R’000 R’000 %
Selling and administration
expenses (92 878) (90 563) (2 315) (2.5%)
Depreciation and amortisation 27 031 (5 650) 32 681 120.9%
Profit before taxation 100 202 69 837 (30 365) (30.3%)
There have been no other changes.
The auditors, Moore Johannesburg Inc, have issued an unmodified audit opinion, which contains key audit
matters and is available on the abovementioned link.
2. Notice of annual general meeting (“AGM”)
Notice is hereby given that the AGM of the shareholders of the Company will be held on Tuesday, 31
August 2021 at 11h00 by electronic communication.
Huge has engaged the services of The Meeting Specialist (“TMS”) to host the AGM on an electronic
communication platform, which will facilitate the remote participation of and voting by shareholders. TMS
will be available to assist shareholders in registering to participate and vote on the electronic
communication platform in accordance with the Companies Act, No 71 of 2008. While voting during the
AGM will be permitted, shareholders are strongly encouraged to submit votes by proxy before the AGM.
Shareholders wishing to participate in the AGM should instruct their CSDP or broker to issue them with
the necessary letter of representation.
Shareholders who wish to participate in the AGM by way of the electronic communication platform are
required to contact TMS at the JSE Limited, One Exchange Square, 2 Gwen Lane, Sandown,
Johannesburg, PO Box 62043, Marshalltown, 2107, or proxy@tmsmeetings.co.za, as soon as practically
possible, but by no later than 11h00 on Monday, 30 August 2021. Full details of this process are set out in
the notice of AGM forming part of the Integrated Report.
The salient dates for the AGM are as follows:
2021
Record date to receive the notice of AGM Friday, 9 July
Notice of AGM distributed to shareholders on Wednesday, 14 July
Last date to trade to be eligible to participate in and vote at the AGM Tuesday, 17 August
Record date to be eligible to participate in and vote at the AGM Friday, 20 August
Duly completed forms of proxy to be lodged by 11h00 Monday, 30 August
AGM held at 11h00 Tuesday, 31 August
Results of AGM released on SENS on or about Tuesday, 31 August
14 July 2021
Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
Date: 14-07-2021 05:30:00
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