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ECSPONENT LIMITED - Notification of expected late issue of Annual Financial Statements for 30 June 2019 and Trading Statement

Release Date: 25/09/2019 07:05
 
Wrap Text
Notification of expected late issue of Annual Financial Statements for 30 June 2019 and Trading Statement

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

NOTIFICATION OF THE EXPECTED LATE ISSUE OF ANNUAL FINANCIAL STATEMENTS FOR THE
YEAR ENDED 30 JUNE 2019 AND TRADING STATEMENT

Background

During the 2019 financial year, Ecsponent concluded transactions that involved, inter alia, the conversion of
certain loan assets into equity of MyBucks SA (“MyBucks”), a Frankfurt-listed financial technology company.
On 26 March 2019 Ecsponent announced a further transaction to capitalise MyBucks (“the MyBucks
Transaction”), with supplementary announcements released on 24 May 2019, 26 July 2019, and
13 September 2019. MyBucks has secured banking licences in five of the 11 countries in which it operates
with lending operations in the balance of the territories.

MyBucks comprises a material investment by Ecsponent and consequently, the Company is reliant on the
conclusion of MyBucks’ financial results before concluding Ecsponent’s 30 June 2019 annual financial
statements. MyBucks auditors’ (PWC Luxembourg) have committed to finalising MyBucks’ consolidated
results once the JSE approval process relating to the MyBucks Transaction is concluded.

The conclusion of the abovementioned approval process of the MyBucks Transaction is anticipated to be
completed with Ecsponent shareholders approval for the MyBucks Transaction at a general meeting by the
end of October 2019.

Late issue of reviewed provisional consolidated annual financial statements for the year ended
30 June 2019:

Ecsponent has, following discussion with its appointed auditors (Nexia SAB&T Inc), concluded that it
anticipates issuing reviewed financial information for the year ended 30 June 2019 by no later than 31
October 2019.

Trading Statement:

In terms of paragraph 3.4(b) of the JSE Limited Listings Requirements, companies are required to publish a
trading statement as soon as they are satisfied, with a reasonable degree of certainty, that the financial
results for the period to be reported upon next will differ by at least 20% from those of the previous
corresponding reporting period.

The board of directors of Ecsponent therefore advises shareholders that it is reasonably certain that the
financial results for the year ended 30 June 2019, when compared with the published results for the year
ended 30 June 2018 (“Comparative Period”), will differ as follows:

•   earnings per share (“EPS”) are expected to decrease by at least 170% to a loss of 6.6255 per share,
    as compared to the EPS of 9.465 cents for the Comparative Period; and
•   headline earnings per share (“HEPS”) are expected to decrease by at least 195% to a loss of 6.6416
    per share, as compared to the HEPS of 6.991 cents for the Comparative Period.

The financial information on which this trading statement is based has not been reviewed or reported on by
the Company's external auditors.

For more information about this announcement or the Ecsponent group, email
investor.relations@ecsponent.com or visit www.ecsponentlimited.com/investor-relations

25 September 2019
Pretoria

Sponsor to Ecsponent
Questco Corporate Advisory (Pty) Ltd

Date: 25/09/2019 07:05:00
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