Wrap Text
SUMMARY CONSOLIDATED RESULTS FOR THE YEAR ENDED 31 AUGUST 2020
Purple Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/013637/06)
Share code: PPE ISIN: ZAE000185526
("Purple Group" or "the Company" or "the Group")
SUMMARY CONSOLIDATED RESULTS
FOR THE YEAR ENDED 31 AUGUST 2020
GROUP HIGHLIGHTS
- Group Revenue increased by 65% to R162.7 million;
- Group costs increased by 16% to R120.7 million;
- Profit/loss attributable to shareholders improved from a loss of R9.5 million to a profit of
R14.4 million, an improvement of 251%.
COMPARED TO THE PREVIOUS CORRESPONDING PERIOD ENDED 31 AUGUST 2019:
- PURPLE GROUP'S BASIC AND HEADLINE EARNINGS/LOSS PER SHARE IMPROVED BY 245%. BASIC AND HEADLINE
EARNINGS/LOSS PER SHARE IMPROVED FROM A LOSS OF 1.06 CENTS TO AN EARNINGS OF 1.54 CENTS.
- THE GROUP'S NET ASSET VALUE PER SHARE INCREASED BY 7.3% FROM 29.09 CENTS TO 31.20 CENTS.
Highlights of the Group's principal operating entities confirm continued growth:
EASYEQUITIES HIGHLIGHTS
- EasyEquities revenue increased by 136% to R96.3 million;
- Platform assets increased by 141% to R21.6 billion;
- Funded retail investment accounts increased by 86% to 260 885;
- RISE has now secured mandates totalling R6.7 billion;
- EasyEquities MobileApp was awarded overall winner at the MTN Business App 2020 Awards;
- Retail deposits increased by 270% to R5.7 billion.
- The Capitec Partnership was concluded
- Profit before tax of R12.4 million was generated, compared to a loss of R13.5 million
in the prior year; and
- EasyEquities Australia and EasyProperties Platforms go live.
GT247.COM HIGHLIGHTS
- GT247.com trading revenue increased by 16.9% to R59.9 million;
- GT247.com costs increased by 4.6% to R38.6 million; and
- Profit before tax increased by 27% to R22.5 million.
GRIT, RESILIENCE AND A PASSION FOR DEMOCRATISATION
2020 will be remembered by most as the year of COVID-19. And the Purple Group is no exception. But where for many the pandemic
was a disaster, our Corona year will best be remembered as one where the Agile way of working, our capacity building in terms of
people, systems and products as well as our passion for ensuring everyone can invest, easily, ensured massive growth across all areas
of the business.
Group revenue increased by 65% whilst costs were contained at 16%. Overall this resulted in the Group generating an attributable
profit of R14.4 million for the year, compared to a loss of R9.5 million in the prior year.
Trading revenue increased substantially and the Group's ambitious growth strategy in EasyEquities has again been evidenced in this
year's result. In addition, our renewed focus on Emperor Asset Management, significant time and energy spent with our partners -
especially at RISE, DCX, Satrix and Capitec - ensured a better than expected and most pleasing performance.
Emperor 's Global Equity Fund ("IP Global Momentum Equity Fund") is ranked 10th globally over three years, compared to 3 638 other
asset managers operating in this sector. Locally, this fund is currently the number 1 Equity based unit trust fund in South Africa over a
three-year period (136.63% return). Servicing high net worth clients using a combination of technology and human relationships, plus
the opportunities to offer hundreds of thousands of retail clients on the Easy platform an excellent managed solution at a fraction of
the cost of competitors, bodes well for Emperor in the coming year. With unit trusts in our Retirement Annuity wallet now a reality, we
have already seen a big increase in activity in this previously untapped segment.
GT247.com reported a profit before tax of R22.5 million, up 27% over last year. The COVID-19 pandemic inspired volatility across
the world in the first and second quarters of 2020, led to a massive increase in traders and trading behaviour. GT247.com did well
because of that surge and has maintained many of the clients who joined in that time. By adding crypto and increasing our research
and educational offerings, this business continues to serve a valuable niche in the market. With the year ahead being one of ongoing
uncertainty, GT247.com clients are spoilt for choice in trading options.
In our last report we detailed our partnership strategy. With the launch of the EasyEquities widget on Capitec and the ability to offer our
EasyEquities service to millions of users, we have significantly ramped up our acquisition via partnerships. And while organic growth
remains strong - fuelled by word of mouth of existing users - partnerships are where we see exponential growth in the year to come.
To all our partners - thank you. Win-win relationships and building sustainable futures with like-minded people is at the heart of all we
do with you.
With growth and diversification of product comes potential complexity and increased customer demands. Using artificial intelligence,
cutting-edge technology and the ever important human element, we have ensured client engagement and user experience remain core
to how we operate. Scaling our business while keeping head count at a minimal, is top of mind and we are pleased to have achieved that.
A huge thank you to our team who, overnight, adapted to the challenges of lockdown to continue serving our clients. And a massive
thanks also to all clients - those who have been with us since the beginning on this journey and those who joined in 2020. You truly are
the reason we do what we do. Every social media post, every email, every call is an opportunity for us to do more. To do better. And the
end goal is financial freedom and dignity for all.
A mere six years ago, EasyEquities was only an idea and passion of a few individuals. Today it is a household name and we are most
proud of and grateful to see how ordinary people have grown in their investment abilities because of our platform. Starting the new
financial year with 260 885 funded investment accounts, the EasyProperties and EasyEquities Australia platforms having gone live and
the launch of the Capitec partnership is an exciting prospect for us. Alongside the other brands and services within Purple Group, we
are determined to deliver with single-minded focus for our clients, our shareholders, our team and the broader community. We look
forward to the next 12 months!
27 November 2020
This short-form announcement is the responsibility of the directors and is only a summary of the information in the full announcement
and does not contain full or complete details. Any investment decision should be based on the full announcement which is available
on our website http://www.purplegroup.co.za or at https://senspdf.jse.co.za/documents/2020/jse/isse/PPE/PPE2020.pdf. Copies of the full
announcement may also be requested at the offices of our sponsors and at our registered offices at no charge, during office hours.
The annual results for the year ended 31 August 2020, from which this announcement is extracted, have been audited by the Company's
auditors, BDO South Africa Incorporated., who expressed an unmodified audit opinion thereon. The audit opinion also includes
communication of key audit matters. The audit opinion is available, along with the annual financial statements, and the summary
financial results, on the Company's website at http://www.purplegroup.co.za. This announcement is not itself audited. Any forward-looking
statement has not been reviewed or reported on by the company's external auditors.
Executive directors: Charles Savage (Chief Executive Officer), Gary van Dyk (Chief Financial Operations Officer).
Non-executive directors: Happy Ntshingila* (Chairman), Arnold Forman*, Craig Carter*, Bonang Mohale, Mark Barnes (*Independent).
Company Secretary: 4 Africa Exchange Registry Proprietary Limited.
Registered office: 16th Floor, 25 Owl Street, Braamfontein Werf, 2092. PO Box 411449, Craighall, 2024.
Auditors: BDO South Africa Incorporated, Registered Auditors, Wanderers Office Park, 52 Corlett Drive, Illovo, 2196.
Share registrars: 4 Africa Exchange Registry Proprietary Limited.
Sponsors: Deloitte and Touche Sponsor Services Proprietary Limited. Deloitte, 5 Magwa Crescent, Waterfall City, Midrand, 2090.
Date: 27-11-2020 03:46:00
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