EFFICIENT GROUP LIMITED - Financial Results Announcement for the year ended 31 August 2019

Financial Results Announcement for the year ended 31 August 2019

Efficient Group Limited 
Incorporated in the Republic of South Africa
Registration number 2006/036947/06
JSE Share code: EFG
ISIN: ZAE000151841


Financial Results Announcement
For the year ended 31 August 2019

OVERVIEW
The vision of Efficient Group (“the Group”) is to be a leading financial services business that 
creates value for our clients through a comprehensive financial services offering.

The Efficient Group was established in 2003, primarily as an asset management company. In 2009 
we listed on the JSE in order to raise capital to build an in-house retail distribution network. 
Today, we are a leading diversified financial services group focused on professional advice, 
quality solutions and tailor-made investment products across the full financial services value 
chain. Operating through three clusters — Financial Services; Solutions and Investments — we 
service over 72 000 clients across South Africa and employ 409 people including 201 registered 
financial advisors.

FINANCIAL PERFORMANCE
                                               2019               2018
Revenue: 1%                                    R1.073 billion     R1.084 billion
Recurring Headline Earnings*: 108%             R75 million        R36 million
Earnings Per Share: 110%                       32.14 cents        (317.91 cents)
Headline Earnings Per Share: 110%              32.95 cents        (318.18 cents)
Recurring Headline Earnings Per Share: 113%    84.89 cents        39.85 cents
Cash Generated By Operations: 116%             R95 million        R44 million
Assets Under Administration: 11.57%            R122.5 billion     R109.8 billion
Assets Under Advice: 2.49%                     R20.6 billion      R20.1 billion
Assets Under Management: 3.08%                 R20.1 billion      R19.5 billion
Assets Under Consulting: 14.95%                R34.6 billion      R30.1 billion

*Excluding the once-off impact of the profit share agreement cancellation (PSA cancellation), 
including the finance cost related thereto, in the Investments cluster and other once-off 
adjustments

HIGHLIGHTS FROM OUR THREE CLUSTERS
Financial Services Cluster
+ Assets under Advice up 2.49% to R 20.6 billion.
+ Efficient Med generated a full-year revenue of R2.76 million.
+ 201 Registered Financial Advisors (RFAs).
+ Our RFAs collectively spent 5 069 hours on professional development training.

Solutions Cluster
+ The assets under management for the combined Funds of Funds (FoF) range is in excess of R4 billion.
+ Efficient Private Clients launched a Local Equity Note, in collaboration with Naviga.
+ Efficient Benefit Consulting successfully on-boarded several new clients.

Investments Cluster
+ Boutique Investment Partners beat tough economy to grow Assets under Consulting and revenue.
+ Boutique Collective Investments performed strongly.
+ Boutique Investment Partners continues to have strong relationships, loyalty and trust with its more
  than 40 large RFA clients.

DIVIDENDS
The Group’s dividend policy is to pay a dividend equal to 80% of free cash flows. Free cash flow is 
calculated after making provision for cash reserves, planned capital expenditure, acquisitions and 
repayments. 

Based on this guideline, the directors determined that no dividend be paid for the financial year 
under review, this allows the company to reduce its debt (2018: 9.40 cents per share).

FOR FURTHER INFORMATION
The content of this short form announcement is the responsibility of the directors. Shareholders are 
advised that this short form announcement represents a summary of the information contained in the full 
long form announcement which is available at
https://senspdf.jse.co.za/documents/2019/jse/isse/efg/ye19.pdf and also published on the Efficient 
Group’s website at https://www.efgroup.co.za/investor-relations/sens. The Efficient Group Annual 
Financial Statements of 2019 is available at
https://www.efgroup.co.za/investor-relations/reports.

Any investment decisions by investors and/or shareholders should be based on a consideration of the 
full announcement published on SENS on Monday, 18 November 2019.

Both the short form and full announcement are also available for inspection at the registered offices
 of The Efficient Group and sponsor, Merchantec Capital, during business hours, and copies may be 
obtained at no cost on request from the Company Secretary, Acorim who is contactable on 011 325 6363 
or efficient@acorim.co.za.

Date: 18/11/2019 12:54:00
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