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Unaudited Interim Results for the half year ended 31 March 2026
Nutun Limited
(Incorporated in the Republic of South Africa)
Registration number: 2002/031730/06
JSE share code: NTU
ISIN: ZAE000167391
("Nutun" or "the company" or "the group")
UNAUDITED INTERIM RESULTS FOR THE HALF YEAR ENDED 31 MARCH 2026 AND COMPLIANCE WITH
THE PROVISIONS OF PARAGRAPH 5.7(D) OF THE JSE LISTINGS REQUIREMENTS
Nutun South Africa and Nutun International remain customer-centric solution providers. Each has a
clearly defined target market, an established client base, a streamlined operating structure and an
experienced management team. These strengths support their positions in the South African collections
and recovery market and the South African business process outsourcing ("BPO") offshoring sector.
Nutun South Africa focuses exclusively on collections and recovery services for clients in South Africa,
both as a principal through the acquisition of unsecured non-performing loan ("NPL") portfolios and as
an agent on behalf of clients in the financial services, specialist lending and retail sectors.
Nutun International specialises in BPO customer engagement services, including customer acquisition
and retention, customer experience, and collections and recovery services for clients located in the
United Kingdom, the United States and Australia. These clients operate mainly in the utilities, financial
services, retail, telecommunications and e-commerce sectors. Growth is targeted in market segments
where the business has entrenched expertise and can deliver innovative, value-added services that
differentiate it from competitors.
Performance – core continuing operations
Refer to the segmental information in note 7 of the unaudited financial statements for the half year
ended 31 March 2026 for the reconciliation to the IFRS disclosure.
Half year
ended 31 Half year
March ended 31
2026 ("H1 March 2025
Key Performance Indicators (Rm) 2026") ("H1 2025") Change
Revenue and other income 1 610 1 480 9%
Nutun South Africa 1 051 917 15%
Nutun International 559 563 (1%)
Operating Costs 820 865 5%
Nutun South Africa 341 395 14%
Nutun International 479 470 (2%)
EBITDA 790 615 28%
Nutun South Africa 710 522 36%
Nutun International 80 93 (15%)
Amortisation of Purchased Book Debts ("PBD") and Right to 597 422 (41%)
Collect ("RTC")
Net interest cost 216 233 7%
Continuing core loss (63) (71) 11%
PBD and RTC
Cost of acquisitions 410 272 51%
Carrying value 4 489 4 353 3%
Estimated remaining collections 8 366 7 808 7%
Clients
Nutun South Africa 20 23 (13%)
Nutun International 36 35 3%
Nutun International billable seats 2 491 2 069 20%
Continuing core earnings improved to a loss of R63 million from a loss of R71 million in H1 2025,
primarily due to:
- Nutun South Africa
- PBD collections improved by 28% to R773 million impacted by PBD acquisitions in the
second half of FY 2025 of R593 million and in the first half of FY 2026 of R382 million.
Collections were also favourably impacted by enhanced collection methodologies
despite the continued subdued economic environment and more recent geopolitical
uncertainty.
- RTC revenue improved by 27% to R116 million impacted by acquisitions in the second
half of FY 2025 of R77 million and in the first half of FY 2026 of R28 million, in addition to
the collections enhancements noted above.
- Agency commission and associated fee revenue declined by 15% to R159 million
following the continued strategic shift to focus on larger, scalable and more profitable
mandates resulting in fewer clients.
- Other income decreased by R31 million to R4 million due to the termination of the
Mobalyz Group Holdings Pty Ltd management fee and a gain on lease modification in the
prior period.
- Operating costs decreased by 14% to R341 million, driven by ongoing cost optimisation,
primarily through headcount reductions.
- EBITDA improved by 36% to R710 million, demonstrating the strong growth in Nutun
South Africa's cash generation.
- Portfolio amortisation costs increased by 41% to R597 million, driven by portfolio ageing
and macro-economic factors linked to interest rates, inflation and consumer health &
payment behaviour.
- Net interest costs decreased by 7% to R203 million, reflecting the repo rate cuts from
November 2025 and tight treasury management.
- Nutun International
- Revenue and other income decreased by 1% to R559 million due to the adverse impact
of average exchange rates for the period of R27 million, offset by a growth in billable
seats from existing and new clients. Closing billable seats grew by 20% to 2,491 with the
client base growing to 36.
- Operating costs increased by only 2% due to ongoing cost optimisation despite a R19
million adverse impact of the translation of balance sheet items and a loss on a foreign
currency hedge, in addition to increased head count due to the increase in billable seats.
- EBITDA decreased by 15% to R80 million, mainly as a result of the adverse foreign
exchange impacts of a combined R46 million as noted above.
Refer to the group continuing core results below for a reconciliation of continuing core earnings to
continuing headline earnings to continuing basic earnings.
Performance – group including discontinued operations
Units H1 2026 H1 2025
Core loss from continuing operations Rm (63) (71)
Core loss from discontinued operations Rm - -
Core loss from total operations Rm (63) (71)
Core loss per share from total operations cents (8.1) (9.1)
Headline loss from continuing operations Rm (63) (122)
Headline loss from discontinued operations Rm - (13)
Headline loss from total operations Rm (63) (135)
Headline loss per share from total operations cents (8.1) (17.2)
Basic loss from continuing operations Rm (63) (122)
Basic loss from discontinued operations Rm - 58
Basic loss from total operations Rm (63) (64)
Basic loss per share from total operations cents (8.1) (8.2)
Operational update and outlook
The simplified group is focused on two priorities. The first is profitability over the short-to-medium term.
The second is sustainable high-quality growth over the long term.
Operational performance during the period was strong, particularly for Nutun South Africa. Earnings were
however adversely affected by Rand strength and accelerated amortisation driven by forward looking
macro-economic assumptions including an elevated interest rate forecast relative to our expectations.
- Balance Sheet and Liquidity
The group's funding covenants are comfortably complied with and have approximately R0.8 billion in
unutilised facilities as 31 March 2026.
- Nutun South Africa
The business continues to streamline its operations, simplify its client approach and optimise its
collections framework and associated technology infrastructure. It has been able to invest in PBD
and RTC portfolios at healthy returns during the period. The ongoing acquisition of PBD and RTC
portfolios on healthy commercial terms, combined with the acceleration of amortisation of older
books, continues to improve the embedded discount rate within the portfolio which will enable
higher profitability in future years. The improvement in the macro environment however remains
uncertain.
The outlook remains positive, with confidence that the business will continue to build on the strong
collection performance trend and achieve its book buying objectives over the medium term,
supported by rigorous credit and risk mitigation policies performed throughout the valuation and
acquisition processes. The demonstrable, albeit early-stage, success that the business has seen from
the rollout of its Agentic AI solutions, which cover both interactive voice engagement and call insight
analytics across its PBD portfolio and which leverage off a sizable data repository relating to
consumer payment behavior and health, will enable the business to accelerate the use of the proven
technology into the remainder of its collection universe further enhancing the efficiency,
effectiveness and profitability of its architecture.
- Nutun International
While the business grew its billable seats during the period, the Rand strength exerted significant
pressure on margins, the AI impact on contact centers started to drive down some inbound
customer demand, and the current geopolitical environment continues to drive foreign exchange
volatility. The BPO market remains highly competitive globally and although the majority of growth
during the period came from existing client mandates, we have onboarded new strategic clients
across the financial services and technology sectors. Operational service delivery, driving efficiencies
and demonstrating practical innovation remains a key driver of client acquisition and retention.
Nutun International continues to focus on diversification of its services to handle more complex
matters, specifically focusing on providing end-to-end services in the recoveries space, benefitting
from the Nutun South Africa experience and technology. Geographically, the group is investing for
growth in the United Kingdom and United States. Short and medium term risks include the continued
Rand strength exerting pressure on margins and uncertainty regarding the future of the Department
of Trade and Industry incentives, which support the BPO industry.
We have used the learnings from our South African business and commenced an AI and automation
strategy across our operational platforms, which will yield measurable improvements in workforce
productivity and cost efficiency. Through the deployment of AI-enabled tools in quality assurance,
workforce management, people orchestration and certain customer facing functions, we are reducing
our payroll-to-revenue ratio while simultaneously improving the proportion of billable advisors
relative to non-billable support headcount. These structural efficiencies are expected to deliver
sustained reductions in operating costs, including lower technology subscription expenditure, reduced
physical infrastructure requirements, and an improved cost-to-serve per transaction.
Management is confident that the progressive integration of AI into our service delivery model will
enhance operating margins and strengthen our competitive positioning as a technology-led BPO
partner of choice.
- Technology and AI
The early but tangible benefits that AI can have on the group, as referred to above in both Nutun South
Africa and Nutun International, are evident and investment will continue in this area.
Dividend
As communicated in FY 2023, cash dividends have been suspended, with no cash dividend being
declared in the current period.
Group continuing core results
Nutun assesses its performance using core continuing earnings, an alternative non-IFRS profit measure,
alongside IFRS profit. Non-IFRS measures are not uniformly defined nor used by all entities and may not
be comparable with similarly labelled measures and disclosures provided by other entities.
Management considers that core continuing earnings is an appropriate alternative performance measure
to enhance the comparability and understanding of the financial performance of the group. The group
has set out its policy to calculate core continuing earnings below.
Nutun calculates headline earnings in accordance with the latest SAICA Circular 1/2023 'Headline
Earnings'.
Core continuing earnings is calculated by adjusting headline earnings for the following:
- Once-off transaction costs that are directly attributable to corporate activity (primarily legal and
consulting fees).
- Adjustments on put and call options over non-controlling interests, namely imputed interest on
the put option liability, re-measurements of the put option liability and fair value adjustments on
the call option derivative.
- Once-off or accelerated items, where these are reasonably expected not to re-occur in the
ordinary course of business in future reporting periods.
- Adding back specified headline earnings exclusions, if the gain/loss is considered part of Nutun's
normal operations.
These adjustments are considered annually based on the transforming nature of the group.
Management is responsible for the calculation of core continuing earnings and determining the
inclusions and exclusions in accordance with the policy.
The reconciliation of continuing basic loss, continuing headline loss and core continuing loss is as follows:
Rm Note H1 2026 H1 2025
Continuing basic and headline loss (63) (122)
Transaction costs 1 - 4
Impairment of financial assets held by an associate 2 - 47
Core continuing loss (63) (71)
Note 1: Once-off costs incurred in relation to the restructuring of the group's funding arrangements
during FY 2025.
Note 2: Impairment of financial assets that are held by TC Global Finance
The reconciliation of discontinued basic loss, discontinued headline loss and core discontinued loss is as
follows:
Rm Note H1 2026 H1 2025
Discontinued basic earnings - 58
Profit on disposal of Nutun Transact - (71)
Discontinued headline loss - (13)
Transaction costs 1 - 13
Core discontinued loss - -
Note 1: Once-off costs incurred in relation to the disposal of Nutun Transact during FY 2025.
Other information
Shareholders are advised that this announcement represents a summary of the information contained in
the unaudited financial statements for the half year ended 31 March 2026 and does not contain full or
complete details. Any investment decisions by investors and/or shareholders should be based on a
consideration of the full unaudited financial statements which are available on
https://senspdf.jse.co.za/documents/2026/JSE/ISSE/NTUE/HY26.pdf and on Nutun's website:
https://www.nutun.com/investor-relations/limited.
This short form announcement, including any forward-looking financial information, has not been
reviewed or reported on by Nutun's external auditors and is the responsibility of the directors. This short
form announcement and the results contained in this short form announcement have been prepared in
compliance with the Listings Requirements of the JSE Limited ("JSE") ("JSE Listings Requirements").
The 2026 Interim Results Presentation (May 2026) is available on Nutun's website:
https://www.nutun.com/media/legal-centre/nutunntuhy26presentation.pdf.
Compliance with the provisions of paragraph 5.7(d) of the JSE Listings Requirements
Following the amendments to the JSE Listings Requirements resulting from the Simplification Project that
became effective on 16 February 2026, the company is required to comply with the provisions of Section
5 of the JSE Listings Requirements which prohibit the appointment of an executive chairperson. The JSE
requested that affected issuers engage the JSE to agree a reasonable timeframe within which to ensure
compliance with Section 5 of the JSE Listings Requirements.
Following engagements with the JSE, the JSE has agreed to allow the company until 01 December 2026 to
comply with the provisions of paragraph 5.7(d) of the JSE Listings Requirements.
Approval by the board of directors
The information in this announcement has been reviewed and approved by the board of directors on 15
May 2026, and is signed on its behalf by:
Jonathan Jawno Rob Huddy
Executive Chairman Chief Financial Officer
Sandton
Date of release on SENS: 18 May 2026
Registered office:
115 West Street, Sandton, 2196
P.O. Box 41888, Craighall, 2024, Republic of South Africa
Tel: +27 (0) 11 049 6700
Fax: +27 (0) 11 049 6899
Directors:
Jonathan Jawno (Executive Chairman), Ruben Moggee (Chief executive officer), Rob Amoils (Chief
executive officer), Rob Huddy (Chief financial officer), Michael Mendelowitz**, Roberto Rossi**, Suresh
Kana (Lead independent director)*, Megandra Naidoo*, Diane Radley*, Sharon Wapnick*
(*Independent non-executive)
(** Non-independent non-executive)
Company secretary:
Jerain Naidoo
Auditor:
PwC
JSE equity sponsor:
Investec Bank Limited
Transfer secretaries:
Computershare Investor Services Proprietary Limited
Enquiries:
IR@nutun.com
Date: 18-05-2026 07:05:00
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