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EFFICIENT GROUP LIMITED - Unaudited Interim Financial Results for the Six Months Ended 28 February 2019

Release Date: 03/05/2019 16:43
Code(s): EFG     PDF:  
 
Wrap Text
Unaudited Interim Financial Results for the Six Months Ended 28 February 2019

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

Think Efficient. Realise potential.

Unaudited interim financial results for the six months ended 28 February 2019

KEY FACTS
Established in 2003 and listed on JSE in 2009 (EFG)
Market capitalisation R407 million (28 February 2019)
>69 000 clients across all sectors
230 financial advisors
456 full-time employees
National footprint
Three-cluster structure to meet client needs, across the full financial services value chain

KEY PERFORMANCE INDICATORS
(Compared to the six months ended 28 February 2018)
Revenue:
(5%)
R524 million
2018: R549 million

Recurring* headline earnings per share:
94%
44.18 cents
2018: 22.79 cents

Assets under administration:
5%
R109.6 billion
2018: R103.9 billion

Assets under management:
(13%)
R17.0 billion
2018: R19.6 billion

Number of advisors:
(4%)
230
2018: 240

Recurring* headline earnings:
91%
R39 million
2018: R21 million

Assets under advice:
5%
R19.5 billion
2018: R18.6 billion

Assets under consulting:
3%
R28.0 billion
2018: R27.2 billion

Cash generated by operations:
(75%)
R6 million
2018: R23 million

* Excluding the impact of the cancellation of the profit share agreement 
  in the Investments cluster and other once-off adjustments

BUSINESS STRATEGY
The business strategy of Efficient Group is to be a diversified financial services
provider offering customised products, professional services and added value
throughout the financial services value chain. In order to be optimally positioned
to do this, the Group adopted its Vision 2020 strategy in 2015.

Since then, we have focused on implementing this strategy in order to ensure
that the business remains relevant, competitive and sustainable within a
constrained economic environment. While our focus is appropriately strategic,
we recognise the need to be responsive to changes in the operating environment,
as well as flexible in the implementation of our strategy. It was for this reason
that we initiated an extensive restructuring of the Financial Services cluster
during the course of the 2017 financial year with, amongst other objectives,
consolidating various brands and entities within this cluster. This process was
successfully concluded in the 2018 financial year.

We also continue to align our strategy, structure, solutions and services with
developing megatrends that are redefining the financial services sector
worldwide. With this in mind, we continue to emphasise the value of
entrapreneurship, being able to act like an entrepreneur within a larger
organisation, both to our clients and to our business. This approach enables
each of the three clusters to function independently and to be responsive to
client and market needs.

In a rapidly changing environment, a strong reputation and integration throughout
the value chain will remain the most important determinants of success. Our
strategy, therefore, focuses not only on consolidating the acquisitions and operational
changes we have made over the years, but also on continuing to secure the kind
of strong corporate culture on which sustainable reputations are built.

In order to achieve our goals, we will continue to focus on the core aspects of
our business: delivering client-centred and customised solutions; maintaining
a solid yet flexible operational structure; extending our national footprint;
expanding into new sectors; and growing both organically as well as through
merger and acquisition.

THE REPORTING PERIOD AT A GLANCE
Strategy
- Efficient Group's strategic objective remains to be a leading diversified
  financial services provider with a national footprint.
- The Group's short- and medium-term objectives, as defined in its Vision 2020
  strategy of 2015 remain applicable.
- All aspects of the strategy are being implemented on an ongoing basis.

Business Development
- The consolidation in the Financial Services cluster has been completed.
- In line with the expected outcomes of the Retail Distribution Review we have
  rebranded the cluster under one primary brand, Efficient Wealth, which we
  expect to be classified under the Retail Distribution Review as a Registered
  Financial Advisor (RFA) model.
- In addition to Efficient Med which was launched on 1 January 2018 in the newly-
  established Financial Planning Centre, Efficient Insure was launched in the
  reporting period to provide services to the clients of Efficient Wealth.
- Boutique Business Development, consisting of the highly-rated and successful
  sales and distribution team of Boutique Collective Investments, expanded their
  services to growing distribution and sales of selected Group services to the
  national network of Efficient Wealth financial planners.

  Operations
- We are continuing with our Vision 2020 strategy in order to align the business's
  structure with its strategic objectives and the financial services value chain.
- The Group's national distribution footprint was strengthened and expanded.
- The development of Efficient Group's proprietary software, FutureSight, is
  ongoing.

Communication
- The Group has a well-established internal and external communication
  programme, and has a special focus on soliciting and responding to client feedback.
- Strong focus on integrating and consolidating corporate culture to align with values.

Governance
- The Group commenced training and commissioned a gap analysis of the
  King IV requirements. The gap analysis included testing the relevant policies
  and statutory documents against the principles and recommended practices of
  King IV.
- Treating Customers Fairly (TCF) is a natural extension to our vision of
  becoming a leading financial services business through a client-centred and
  entrepreneurial business model, attuned to sustainable growth and profitability.
  In this regard, a roll-out plan for the implementation of TCF and reinforcement
  of a TCF culture was designed and approved.

FINANCIAL COMMENTARY
Overview
Profit for the six months ended 28 February 2019 ("the reporting period") is 14%
higher compared to the six months ended 28 February 2018 ("the comparative
period") and operating profit doubled to R54 million. Group revenue reduced by
5% during the reporting period and the Group was able to achieve slightly higher
margins of 28.2% compared to 27.8% for the comparative period. Net tangible
assets per share decreased from 33.21 cents per share at 31 August 2018 to a
net tangible liability of 133.12 cents per share at the end of the reporting period.

                                      Feb 2019         Feb 2018         Aug 2018
Assets under Advice              R19.5 billion    R18.6 billion    R20.1 billion
Assets under Management          R17.0 billion    R19.6 billion    R19.5 billion
Assets under Administration     R109.6 billion   R103.9 billion   R109.8 billion
Assets under Consulting          R28.0 billion    R27.2 billion    R30.1 billion
Total Assets                    R174.1 billion   R169.3 billion   R179.5 billion

Total assets were up 3% from February 2018 and down 6% compared to total
assets as at 31 August 2018. The retraction of the JSE All Share Index of 3%
over the comparative period and 4% since 31 August 2018, impacted the
growth in the Group's assets.

FINANCIAL RESULTS
Statement of Comprehensive Income
The Group generated a net profit after tax of R22 million for the reporting period,
compared to a net profit after tax of R19 million for the comparative period.

The Group reported headline earnings of R22 million for the reporting period
(February 2018: R19 million). Headline earnings per share was calculated at
24.90 cents per share (February 2018: 22.31 cents per share).

As explained in our 2018 integrated report, the Group exercised its right to
cancel the profit share arrangement with Efficient Invest by entering into a profit
share cancellation agreement ("PSA"). Operating profit doubled as a result of the
PSA. After adding back the cost (cancellation fee and finance cost) associated
with the PSA, the Group reported recurring headline earnings of 44.18 cents per
share (February 2018: 22.79 cents per share).

Revenue of R524 million was 5% lower than revenue reported for the
comparative period. The Financial Services cluster achieved revenue growth of
2%, while aggregated revenue from the Solutions and Investment clusters
decreased due to lower assets under management. Operating expenses
consist of:

                                     Unaudited    Unaudited              Audited
                                    six months   six months                 year
                                         ended        ended                ended
                                     28-Feb-19    28-Feb-18        %   31-Aug-18
                                         R'000        R'000   Change       R'000
Fixed expenses                          79 047       70 355      12%     149 450
Profit share                               529       43 035     (99%)     76 844
Staff incentives                         5 836        4 960      18%      18 352
Non-cash flow expenses                   8 738        8 331       5%      17 182
Operating expenses                      94 150      126 681     (26%)    261 828

Fixed expenses increased by 12% mainly due to the changes in the Financial
Services cluster, ensuring sufficient and appropriate resources after the
consolidation of the different financial services providers (FSP's).

Staff incentives are provided for based on the business unit performance
against its target and the outperformance of its targets. It is expected that
business units will achieve their year-end targets. The increase in the provision
for incentives is in line with higher profits generated by the business units.

The profit share provision in the reporting period is linked to the performance
of the registered financial advisors (RFA's) in the branch model in the Financial
Services cluster, whilst the profit share payments for Efficient Invest was
included in the comparative period.

Non-cash flow expenses consist of amortisation costs and depreciation.

Statement of Cash Flows
The Group generated cash of R62 million from operating activities during the
six months under review and paid net finance costs of R11 million and tax of
R3 million. Cash generated from operating activities was reduced by R56 million
due to the increase in working capital as a result of the payment of the final
profit share to Efficient Invest, after August 2018.

Cash of R16 million was used as follows:
- Investment activities that mainly consisted of the acquisitions of independent
  financial advisor client bases, decrease of loans receivable and acquisition of
  property plant and equipment.
- Financing activities that mainly consisted of share repurchases, the repayment
  of long-term liabilities and payment of a dividend.
- The repayment of the profit share cancellation liabilities was partially financed
  by a loan from Standard Bank.

Statement of Financial Position
Debt increased by R273 million to fund the PSA and resulted in a net tangible
liability of 133.12 cents per share at the end of the reporting period.

At 28 February 2019 current liabilities exceeded current assets by R19 million.
Included in the current liabilities is an amount related to the convertible loan
that is payable at the end of August 2019 and in the event that it is not paid, it
will convert into ordinary shares per agreement. Management also assessed
the Group's cash flow forecast and is of the opinion that the Group will be able
to settle its short-term commitments as and when they become due.

BUSINESS SEGMENTAL RESULTS
FINANCIAL SERVICES
Nature of Business
Delivers comprehensive financial planning and management solutions.
Distributes proprietary and third party financial products to identified target
markets through a national network of financial advisors.

Business Units (Majority Shareholding)
- Efficient Wealth
- W-Allen White
- Secure Capital Investments

Services
- Cash management
- Employee benefits
- Estate planning
- Financial planning
- Healthcare
- Investment management
- Life and business assurance
- Retirement planning
- Short-term insurance
- Stockbroking
- Trust and executorship

Strategy
- Consolidate existing FSP's
- Adopt a single brand ("Efficient Wealth")
- Grow retail distribution footprint
- Entrench the Efficient Experience culture
- Increase profitability

Clients
Private, institutional, SME and corporate clients

Financial Performance
The cluster managed to maintain the same level of revenue and gross
contribution compared to the six months ended 28 February 2018, despite
tough market conditions. As the cluster's focus was on the consolidation of its
various FSP's in the period thereafter, including the current reporting period,
additional costs were incurred to ensure that the cluster has sufficient and
appropriate resources. In addition to this, during the comparative period, the
cluster's performance included gains from once-off transactions, including the
sale of a financial advisory client base.

                                   Six months   Six months             12 months
                                        ended        ended        %        ended
                                     Feb 2019     Feb 2018   Change     Aug 2018
Number of employees                       367          365       1%          364
Assets under Advice (AUA) R'000    19 464 000   18 553 000       5%   20 086 000
Revenue R'000                         115 522      112 820       2%      226 857
Profit for the period R'000               446        7 215     (94%)       5 382

SOLUTIONS
Nature of Business
Delivers customised, value-added financial services and solutions to retail, corporate and institutional clients.

Business Units (Majority Shareholding)
- Naviga Solutions
- Select Manager
- Efficient Benefit Consulting
- Efficient Board of Executors
- Efficient Private Clients
- Efficient Med (Division of Efficient Wealth)
- Efficient Insure (Division of Efficient Wealth)

Services
- Model portfolios (wrap funds)
- Multi-managed funds
- Share portfolios
- Trusts and wills
- Deceased estates
- Employee benefit consulting services

Strategy
- Create and package quality value propositions for the retail market
- Market and distribute the value propositions through the Group's distribution
  businesses and through independent financial advisors
- Secure vertical integration through proprietary solutions and services
- Diversify revenue streams

Clients
Financial advisors and private, institutional and corporate clients

Financial Performance
The transfer of Select Manager from the Investments cluster to the Solutions
cluster is the main contributor to the increase in this cluster's AUM, revenue and
profit for the period, compared to that for the six months ended 28 February 2018.

                                   Six months   Six months             12 months
                                        ended        ended        %        ended
                                     Feb 2019     Feb 2018   Change     Aug 2018
Number of employees                        23           21      10%           22
Assets under Management          
(AUM) R'000                         8 052 000    6 650 000      21%    8 927 000
Assets under Consulting          
(AUC) R'000                           134 000            -   > 100%      130 000
Revenue R'000                          28 357       17 157      65%       54 238
Profit/(loss) for the            
period R'000                            3 228         (270)  > 100%        3 690

INVESTMENTS
Nature of Business
Executes administration, consulting, management and distribution of co-branded
collective investments to both retail and institutional investors.

Business Units (Majority Shareholding)
- Boutique Collective Investments
- Boutique Investment Partners
- Efficient Select

Services
- Fund administration
- Fund management
- Investment consulting
- Multi-management

Clients
Financial advisors and private, institutional and corporate clients

Strategy
- Grow assets under administration, management and consulting
- Facilitate and identify consolidation opportunities in the asset management
  space

Financial Performance
The cluster's AUM, revenue and profit for the period decreased compared to
28 February 2018 due to Select Manager being transferred from the Investments
cluster to the Solutions cluster, in addition to tough market conditions which
negatively impacted the performance.

                                Six months    Six months               12 months
                                     ended         ended        %          ended
                                  Feb 2019      Feb 2018   Change       Aug 2018
Number of employees                     36            38      (5%)            37
Assets under Management        
(AUM) R'000                      8 920 000    12 965 000     (31%)    10 609 000
Assets under Administration    
(AUAdmin) R'000                109 610 000   103 912 000       5%    109 848 000
Assets under Consulting        
(AUC) R'000                     27 846 000    27 158 000       3%     29 980 000
Revenue R'000                      414 762       456 877      (9%)       879 900
Profit/(loss) for              
the period R'000                    15 881        18 385     (14%)      (287 159)

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

Based on this guideline, the directors determined that no interim dividend be
paid to allow the company to repay debt.

CHANGES TO THE BOARD OF DIRECTORS
Mr Stephen Rushton resigned as a non-executive director with effect from
6 December 2018, following the disposal by Thebe Investment Corporation
Proprietary Limited of its entire beneficial interest in the securities of the
Company. The Board would like to thank Mr Stephen Rushton for his valued
contribution to the Group.

The Board welcomes Mr Erol Zeki as newly appointed non-executive director
and Ms Bongiwe Momoza as alternate director to non-executive director,
Mr Erol Zeki. Both were appointed on 13 February 2019.

The unaudited interim results for the six months ended 28 February 2019 were
approved by the board of directors on 30 April 2019 and are signed on their
behalf by:

Steve Booysen
Chair
30 April 2019

Heiko Weidhase
Chief Executive Officer
30 April 2019

UNAUDITED INTERIM FINANCIAL RESULTS
For the six months ended 28 February 2019
BASIS OF PREPARATION
The interim results for the six months ended 28 February 2019 are presented
on a consolidated basis and are prepared in accordance with the recognition
and measurement requirements of International Financial Reporting Standards
and presentation and disclosure requirements of IAS 34 (Interim Financial
Reporting), the JSE Listings Requirements, the Companies Act of South Africa
and the SAICA Financial Reporting Guides as issued by the Accounting Practices
Board. The accounting policies applied are consistent with those applied in the
previous interim period and previous financial year-end, except where indicated
differently. No material events occurred after the interim period which requires an
adjustment to the financial information. These interim results have not been
audited or reviewed by the Group's auditors, KPMG Inc. The summarised
unaudited interim financial results are prepared by Yazeed Patel CA(SA), 
the Group Financial Manager of Efficient Group.

SUMMARISED STATEMENT OF COMPREHENSIVE INCOME

                                         Unaudited   Unaudited           Audited
                                        Six months  Six months              Year
                                             ended       ended      %      ended
R'000                             Notes  28-Feb-19   28-Feb-18 Change  31-Aug-18
Revenue                                    523 776     548 512    (5%) 1 083 506
Asset management and                                                   
consultation fees                           18 448      30 495            45 069
Asset administration fees                  364 526     389 820           762 310
Financial services income                  112 589     110 620           221 579
Income from solutions                       26 307      15 965            50 595
Other revenue                                1 906       1 612             3 953
Variable expenses                         (376 066)   (395 983)         (778 561)
Gross profit                               147 710      152 529   (3%)   304 945
Operating expenses                         (94 150)   (126 681)         (261 828)
Fixed expenses                             (79 047)    (70 355)         (149 450)
Profit share                                  (529)    (43 035)          (76 844)
Staff incentives                            (5 836)     (4 960)          (18 352)
Non-cash flow expenses                      (8 738)     (8 331)          (17 182)
Share of (losses)/profits                                              
from investments in                                                    
equity-accounted                                                       
associates, net of                                                     
taxation                                       (20)        540               913
Operating profit                            53 540      26 388  >100%     44 030
Non-operating items                         (8 293)        261          (445 299)
Dividend income on other                                               
investments                                     61          38                25
Profit on disposal of                                                  
equipment                                       21         214                 -
Profit on disposal of                                                  
customer contracts and                                                 
customer relationships                           -       1 342             1 342
Commission-agreement                                                   
cancellation expense                             -           -            (1 710)
Realised fair value adjustments                                        
on available-for-sale investments                -          (6)                -
Fair value adjustments on                                              
investments at fair value through                                      
profit or loss                                  (1)       (190)              (97)
Re-measurement of loans                                                
and borrowings at fair value                                           
through profit or loss                           -      (1 471)            1 486
Gain on settlement of loans                                            
and borrowings at amortised                                            
cost                                             -           -               562
Bad debts expense                                -           -            (5 665)
Non-operating items                                                    
Other (expenses)/ income                        (6)        334             2 158
Impairment of goodwill                           -           -              (350)
Impairment of investments                                              
in equity-accounted associates                   -           -              (320)
Profit-share cancellation expense     1     (8 333)          -          (430 000)
Transaction costs on profit-                                           
share cancellation                             (35)          -           (12 730)
Profit/(loss) before net finance                                       
income                                      45 247      26 649  >100%   (401 269)
Net finance (costs)/income                 (16 185)      1 030             1 558
Finance income                               3 379       2 358             7 123
Finance costs                              (19 564)     (1 328)           (5 565)
Profit/(loss) before taxation               29 062      27 679     5%   (399 711)
Taxation                                    (7 441)     (8 760)          111 638
Profit/(loss) for the period                21 621      18 919    14%   (288 073)
Other comprehensive income                                             
Items that may subsequently                                            
be reclassified to profit or loss                -           -              (186)
Unrealised fair value adjustments                                      
on available-for-sale investments                -           -              (256)
Related taxation                                 -           -                70
Items that may not be subsequently                                     
reclassified to profit or loss                   -           -             5 093
Revaluation of property                          -           -             7 073
Related taxation                                 -           -            (1 980)
Other comprehensive income,                                            
net of taxation for the period                   -           -             4 907
Total comprehensive income/(loss)                                      
for the period                              21 621      18 919          (283 166)
Profit/(loss) for the period                                           
attributable to:                                                       
Equity holders of the parent                22 131      20 097          (285 946)
Non-controlling interests                     (510)     (1 178)           (2 127)
                                            21 621      18 919          (288 073)
Total comprehensive income/(loss)                                      
for the period attributable to:                                        
Equity holders of the parent                22 131      20 097          (281 039)
Non-controlling interests                     (510)     (1 178)           (2 127)
                                            21 621      18 919          (283 166)
Basic earnings/(loss) per                                              
share (cents)                         2      24.90       22.31    12%    (317.91)
Diluted earnings/(loss) per                                            
share (cents)                         2      19.47       22.31   (13%)   (317.91)
Headline earnings/(loss) per                                           
share (cents)                         2      24.88       21.15    18%    (318.18)
Diluted headline earnings/(loss)                                       
per share (cents)                     2      19.46       21.15    (8%)   (318.18)

SUMMARISED STATEMENT OF FINANCIAL POSITION
                                         Unaudited   Unaudited           Audited
                                        Six months  Six months              Year
                                             ended       ended      %      ended
R'000                             Notes  28-Feb-19   28-Feb-18 Change  31-Aug-18
Assets                                              
Non-current assets                                  
Property and equipment                3     62 486      54 164            62 596
Goodwill                              4    155 611     154 076           154 981
Intangible assets                     5    117 841     126 105           123 202
Unit-linked and other                               
investments                                  2 380         328             2 393
Investments in equity-                              
accounted associates                         6 402       7 177             6 422
Loans receivable                             1 312       3 087             1 448
Deferred tax assets                   6    132 174      24 994           138 933
                                           478 206     369 932    29%    489 975
Current assets                                      
Unit-linked and other                               
investments                                  2 017       1 157             1 092
Trade and other receivables                 88 204      90 542            97 780
Cash and cash equivalents                   59 528      90 066            82 900
Short-term portion of loans                         
receivable                                   1 009       2 030             1 539
Current tax receivable                         105         318               592
                                           150 863     184 113           183 903
Total assets                               629 069     554 045    14%    673 878
Equity and liabilities                              
Equity                                              
Share capital and share premium       7    144 434     148 645           145 809
Treasury share reserve                        (532)       (532)             (532)
Fair-value adjustment reserve                 (185)          1              (185)
Revaluation reserve                          6 218       1 125             6 218
Convertible loan                      8    138 981           -           138 981
Accumulated (loss)/income                 (166 513)    125 785          (182 042)
Equity attributable to equity                       
holders of the parent                      122 403     275 024           108 249
Non-controlling interests                    1 995       4 071             2 848
Total equity                               124 398     279 095   (55%)   111 097
Non-current liabilities                             
Loans and borrowings                  9    304 220      38 380            88 979
Provisions for onerous contracts                 -          19                 -
Deferred tax liabilities              6     30 573      31 178            31 438
                                           334 793      69 577  >100%    120 417
Current liabilities                                 
Convertible loan                            20 578           -            19 202
Short-term portion of loans                         
and borrowings                        9     53 254      44 734           260 039
Provisions for onerous contracts               100         210               114
Trade and other payables                    95 723     141 081           161 856
Current tax payable                            115      11 217               998
Cash and cash equivalents                      108       8 131               155
                                           169 878     205 373   (17%)   442 364
Total liabilities                          504 671     274 950    84%    562 781
Total equity and liabilities               629 069     554 045    14%    673 878
Net asset value per share (cents)           137.77      306.07   (55%)    121.39
Net tangible (liability)/asset                      
value per share (cents)                    (133.12)      33.21 (>100%)   (152.19)

SUMMARISED STATEMENT OF CHANGES IN EQUITY
                                           
                                               Share
                                             capital      Treasury    Fair-value
                                           and share         share    adjustment
                                             premium       reserve       reserve
                                               R'000         R'000         R'000
Balance at 31 August 2017                    150 325          (532)            1
Transactions with owners                      (1 680)            -             -
Dividends declared                                 -             -             -
Repurchase of shares                          (1 680)            -             -
Total comprehensive income/(loss)          
for the period                                     -             -             -
Profit/(loss)                                      -             -             -
Other comprehensive income                         -             -             -
Balance at 28 February 2018                  148 645          (532)            1
Transactions with owners                      (2 836)            -             -
Dividends declared                                 -             -             -
Repurchase of shares                          (2 836)            -             -
Issue of convertible loan                          -             -             -
Total comprehensive (loss)/income                            
for the period                                     -             -          (186)
Loss                                               -             -             -
Other comprehensive (loss)/income                  -             -          (186)
Balance at 31 August 2018                    145 809          (532)         (185)
Transactions with owners                      (1 375)            -             -
Dividends declared                                 -             -             -
Repurchase of shares                          (1 375)            -             -
Total comprehensive income/(loss)          
for the period                                     -             -             -
Profit/(loss)                                      -             -             -
Other comprehensive income                         -             -             -
Balance at 28 February 2019                  144 434          (532)         (185)
                                            
                                               Reva-                   Accumula-
                                             luation   Convertible    ted income
                                             reserve          loan         (loss)
                                               R'000         R'000         R'000
Balance at 31 August 2017                      1 125             -       111 487
Transactions with owners                           -             -        (5 799)
Dividends declared                                 -             -        (5 799)
Repurchase of shares                               -             -             -
Total comprehensive income/(loss)                  
for the period                                     -             -        20 097
Profit/(loss)                                      -             -        20 097
Other comprehensive income                         -             -             -
Balance at 28 February 2018                    1 125             -       125 785
Transactions with owners                           -       138 981        (1 784)
Dividends declared                                 -             -        (1 784)
Repurchase of shares                               -             -             -
Issue of convertible loan                          -       138 981             -
Total comprehensive (loss)/income           
for the period                                 5 093             -      (306 043)
Loss                                               -             -      (306 043)
Other comprehensive (loss)/income              5 093             -             -
Balance at 31 August 2018                      6 218       138 981      (182 042)
Transactions with owners                           -             -        (6 602)
Dividends declared                                 -             -        (6 602)
Repurchase of shares                               -             -             -
Total comprehensive income/(loss)                  
for the period                                     -             -        22 131
Profit/(loss)                                      -             -        22 131
Other comprehensive income                         -             -             -
Balance at 28 February 2019                    6 218       138 981      (166 513)
                                        
                                               Total
                                        attributable
                                           to equity          Non-
                                          holders of   controlling         Total
                                          the parent     interests        equity
                                               R'000         R'000         R'000
Balance at 31 August 2017                    262 406         5 592       267 998
Transactions with owners                      (7 479)         (343)       (7 822)
Dividends declared                            (5 799)         (343)       (6 142)
Repurchase of shares                          (1 680)            -        (1 680)
Total comprehensive income/(loss)           
for the period                                20 097        (1 178)       18 919
Profit/(loss)                                 20 097        (1 178)       18 919
Other comprehensive income                         -             -             -
Balance at 28 February 2018                  275 024         4 071       279 095
Transactions with owners                     134 361          (274)      134 087
Dividends declared                            (1 784)         (274)       (2 058)
Repurchase of shares                          (2 836)            -        (2 836)
Issue of convertible loan                    138 981             -       138 981
Total comprehensive (loss)/income
for the period                              (301 136)         (949)     (302 085)
Loss                                        (306 043)         (949)     (306 992)
Other comprehensive (loss)/income              4 907             -         4 907
Balance at 31 August 2018                    108 249         2 848       111 097
Transactions with owners                      (7 977)         (343)       (8 320)
Dividends declared                            (6 602)         (343)       (6 945)
Repurchase of shares                          (1 375)            -        (1 375)
Total comprehensive income/(loss)
for the period                                22 131          (510)       21 621
Profit/(loss)                                 22 131          (510)       21 621
Other comprehensive income                         -             -             -
Balance at 28 February 2019                  122 403         1 995       124 398

SUMMARISED STATEMENT OF CASH FLOWS
                                       Unaudited   Unaudited             Audited
                                      Six months  Six months                Year
                                           ended       ended       %       ended
R'000                          Notes   28-Feb-19   28-Feb-18  Change   31-Aug-18
Cash flows from operating                                              
activities                                                             
Cash generated from operations    11       5 689      22 975              44 359
Finance income received                    3 225       2 358               7 123
Finance costs paid                       (14 251)     (1 328)             (5 426)
Dividends received from                                                
unit-linked and other                                                  
investments                                   61          38                  25
Dividends received from                                                
investments in equity-                                                 
accounted associates                           -           -                 809
Taxation paid                             (2 574)    (10 183)            (17 131)
Net cash (outflow)/inflow                                              
from operating activities                 (7 850)     13 860   (157%)     29 759
Cash flows from investing                                              
activities                                                             
Acquisition of businesses,                                             
net of cash acquired                      (1 118)     (3 471)             (5 804)
Proceeds on disposal of                                                 
business                                       -       1 495               2 030
Additional payment for                                                  
business previously acquired                   -           -                (148)
Proceeds from loans receivable             1 387         115              (1 903)
Loans receivable advanced                   (576)     (3 403)                  -
Acquisition and development                                                
of intangible assets                          (5)       (137)               (238)
Acquisition of unit-linked                                             
and other investments                       (913)      3 329                 787
Acquisition and development                                                
of property                                 (141)     (2 085)             (3 420)
Acquisition of equipment                    (869)       (988)             (2 359)
Proceeds on disposal of                                                
equipment                                     21         249                  25
Net cash outflow from                                                  
investing activities                      (2 214)     (4 897)   (55%)    (11 030)
Cash flows from financing                                              
activities                                                             
Repurchase of shares                      (1 375)     (1 680)             (4 516)
Proceeds from long-term                                                
liabilities                              242 500         185              36 400
Repayment of long-term                                                 
liabilities                               (5 863)    (11 058)            (24 692)
Repayment of forward purchase                                          
and dividend liabilities                     (69)     (4 488)            (31 069)
Repayment of contingent                                                      
consideration liabilities                      -        (572)             (2 447)
Repayment of profit-share                                                   
cancellation liabilities                (240 000)          -                   -
(Repayment of)/proceeds                                                      
from other vendor finance                                                    
liabilities                               (1 509)     (1 314)                499
Dividends paid                            (6 945)     (6 142)             (8 200)
Net cash outflow from                                                  
financing activities                     (13 261)    (25 069)   (47%)    (34 025)
Cash and cash equivalents                                              
movement for the period                  (23 325)    (16 106)            (15 296)
Cash and cash equivalents                                                   
at the beginning of the period            82 745      98 041              98 041
Cash and cash equivalents at                                           
the end of the period                     59 420      81 935    (27%)     82 745
Cash and cash equivalents                                              
in current assets                         59 528      90 066              82 900
Cash and cash equivalents                                                
in current liabilities                      (108)     (8 131)               (155)
Cash and cash equivalents                                              
at the end of the period                  59 420      81 935    (27%)     82 745

SEGMENTAL ANALYSIS
Unaudited - for the six months ended 28 February 2019
                    Financial
                     Services     Solutions    Investments      Other      Total
                        R'000         R'000          R'000      R'000      R'000
Revenue               115 522        28 357        414 762    (34 865)   523 776
External              111 917        10 887        399 581      1 390    523 776
Inter-group             3 605        17 469         15 181    (36 255)         -
Profit for         
the period                446         3 228         15 881      2 066     21 621
Assets                 62 594        40 698        246 347    279 430    629 069
Liabilities           (63 044)      (24 461)      (515 781)    98 615   (504 671)

Unaudited - for the six months ended 28 February 2018
                    Financial
                     Services     Solutions    Investments      Other      Total
                        R'000         R'000          R'000      R'000      R'000
Revenue               112 820        17 157        456 877    (38 342)   548 512
External              112 478        17 157        429 335    (10 458)   548 512
Inter-group               342             -         27 542    (27 884)         -
Profit/(loss) for 
the period              7 215          (270)        18 385     (6 411)    18 919
Assets                 63 871        31 473        214 749    244 526    554 619
Liabilities           (28 040)       (9 972)      (139 465)   (98 047)  (275 524)

Audited - for the year ended 31 August 2018
                    Financial
                     Services     Solutions    Investments      Other      Total
                        R'000         R'000          R'000      R'000      R'000
Revenue               226 857        54 238        879 900    (77 489) 1 083 506
External              219 146        17 419        843 064      3 877  1 083 506
Inter-group             7 711        36 819         36 836    (81 366)         -
Profit/(loss)      
for the period          5 382         3 690       (287 159)    (9 986)  (288 073)
Assets                 63 178        71 770        283 852    255 078    673 878
Liabilities           (61 405)      (27 721)      (570 240)    96 585   (562 781)

Other consists of intergroup eliminations and consolidation entries, Efficient
Group Limited, Efficient Capital Proprietary Limited, Efficient Group Central
Services Proprietary Limited, AS Sure Investment Services Proprietary Limited,
Efficient Equity Proprietary Limited, the Efficient Group Share Trust and the
Efficient Ulwazi Educational Trust. All operations take place in Southern Africa.

None of the Group's segments relies on concentrated or major clients.

NOTES TO THE UNAUDITED INTERIM FINANCIAL RESULTS
1. Profit-share cancellation
The profit-share cancellation expense relates to the cancellation of the "Joint
Management and Profit Incentive Agreement" (the PS agreement) with the
profit-share nominees which included a related party. The cancellation became
effective on 31 August 2018. Based on the structure of the cancellation agreement,
some of the payments due for cancellation were recognised immediately on
31 August 2018, whereas others were deferred. The composition of the profit-
share cancellation in the Group's financial statements are as follows:

                                      Unaudited at   Unaudited at    Audited at
                                         28-Feb-19      28-Feb-18     31-Aug-18
                                             R'000          R'000         R'000
Cancellation fee                                 -              -       366 203
Initial general employee incentive               -              -        12 250
Restraint fee                                    -              -        19 730
Further general employee incentive               -              -        12 250
Participating partner incentive                  -              -        19 567
Nominee incentives                           8 333              -             -
                                             8 333              -       430 000

2. Earnings/(loss) per share
                                      Unaudited at   Unaudited at     Audited at
                                         28-Feb-19      28-Feb-18      31-Aug-18
                                             R'000          R'000          R'000
Headline and diluted headline                       
earnings                                            
Attributable earnings/(loss)                        
for equity holders of                               
the parent                                  22 131         20 097       (285 946)
Basic earnings                              22 131         20 097       (285 946)
Profit on disposal of                               
equipment                                      (21)          (214)             -
Taxation on profit on disposal                      
of equipment                                     6             60              -
Profit on disposal of customer                      
contracts and customer                              
relationships                                    -         (1 342)        (1 342)
Taxation on profit on disposal                      
of customer                                         
contracts and customer                              
relationships                                    -            455            431
Impairment of goodwill                           -              -            350
Impairment of investments                           
in equity-accounted                                 
associates                                       -              -            320
Headline earnings/(loss)                    22 116         19 056       (286 187)
Basic earnings                              22 131         20 097       (285 946)
Interest on convertible loan                 1 376              -              -
Taxation on interest on                             
convertible loan                              (385)             -              -
Diluted earnings                            23 122         20 097       (285 946)
Profit on disposal of                               
equipment                                      (21)          (214)             -
Taxation on profit on                               
disposal of equipment                            6             60              -
Profit on disposal of                               
customer contracts and                              
customer relationships                           -         (1 342)        (1 342)
Taxation on profit on                               
disposal of customer contracts                      
and customer relationships                       -            455            431
Impairment of goodwill                           -              -            350
Impairment of investments                           
in equity-accounted associates                   -              -            320
Diluted headline earnings/(loss)            23 107         19 056       (286 187)

                                      Unaudited at   Unaudited at     Audited at
                                         28-Feb-19      28-Feb-18      31-Aug-18
                                             R'000          R'000          R'000
Weighted average 
number of ordinary shares
Ordinary shares in issue 
at the beginning of the period              89 495         90 593         90 593
Effect of shares repurchased               
during the period                             (280)          (191)          (326)
Effect of treasury shares                  
held from the beginning                    
of the period                                 (321)          (321)          (321)
Weighted average number of                 
ordinary shares for basic                  
earnings/(loss) and headline               
earnings/(loss)                             88 894         90 081         89 946
Potential ordinary shares to               
be issued                                   29 846              -              -
Weighted average number of                 
ordinary shares for diluted                
earnings/(loss) and diluted                
headline earnings/(loss)                   118 740         90 081         89 946

                                      Unaudited at   Unaudited at     Audited at
                                         28-Feb-19      28-Feb-18      31-Aug-18
                                             Cents          Cents          Cents
Basic earnings/(loss) per share              24.90          22.31        (317.91)
Diluted earnings/(loss) per share            19.47          22.31        (317.91)
Headline earnings/(loss) per share           24.88          21.15        (318.18)
Diluted headline earnings/(loss)     
per share                                    19.46          21.15        (318.18)

3. Property and equipment
                                            Buildings      Furniture,
                                           (including    computers and
                                         assets under       leasehold
                                 Land    construction)   improvements      Total
Unaudited - for the           
six months ended              
28 February 2019                R'000           R'000           R'000      R'000
Opening balance                11 800          45 900           4 896     62 596
Additions                           -             141             869      1 010
Depreciation                        -               -          (1 120)    (1 120)
Disposals                           -               -               -          -
Closing balance                11 800          46 041           4 645     62 486
                              
                                            Buildings      Furniture,
                                           (including    computers and
                                         assets under       leasehold
                                 Land    construction)   improvements      Total
Unaudited - for the           
six months ended              
28 February 2018                R'000           R'000           R'000      R'000
Opening balance                10 560          36 255           5 383     52 198
Additions                           -           2 085             988      3 073
Depreciation                        -               -          (1 072)   (1 072)
Disposals                           -               -             (35)      (35)
Closing balance                10 560          38 340           5 264     54 164
                              
                                            Buildings      Furniture,
                                           (including    computers and
                                         assets under       leasehold
                                 Land    construction)   improvements      Total
Audited - for the             
year ended                    
31 August 2018                  R'000           R'000           R'000      R'000
Opening balance                10 560          36 255           5 383     52 198
Additions                           -           3 420           2 359      5 779
Transfers                           -             519            (519)         -
Depreciation                        -            (127)         (2 302)    (2 429)
Disposals                           -               -             (25)       (25)
Revaluations                    1 240           5 833               -      7 073
Closing balance                11 800          45 900           4 896     62 596

The Group's properties are revalued annually during August each year.

4. Goodwill
                                        Unaudited at   Unaudited at   Audited at
                                           28-Feb-19      28-Feb-18    31-Aug-18
                                               R'000          R'000        R'000
Opening balance                              154 981        153 056      153 056
Acquired through business               
combinations                                     630          1 020        2 275
Disposals                                          -              -            -
Impairments                                        -              -         (350)
Closing balance                              155 611        154 076      154 981
Goodwill is allocated to the            
following cash-generating               
units:                                  
Efficient Financial Services            
Proprietary Limited                     
trading as Efficient Wealth                   48 131         13 882       36 837
Efficient Wealth Proprietary            
Limited                                            -         22 148            -
Efficient Select Proprietary            
Limited                                        8 369          8 369        8 369
Naviga Solutions Proprietary            
Limited                                       25 404         25 118       25 404
Select Manager Proprietary              
Limited                                       66 954         66 954       66 954
Stead Wealth Management Proprietary     
Limited                                            -          4 127        4 575
Exceed Asset Management Proprietary     
Limited                                            -          6 088        6 088
W Allen-White Brokers Proprietary       
Limited                                          666          1 016          666
Secure Capital Investments Proprietary  
Limited                                        4 236          4 237        4 237
Efficient Private Clients Proprietary   
Limited                                        1 851          1 851        1 851
Efficient Institutional Investment      
Managers                                
Proprietary Limited                                -            286            -
                                             155 611        154 076      154 981

The goodwill previously allocated to Stead Wealth Management Proprietary
Limited and Exceed Asset Management Proprietary Limited was transferred to
Efficient Financial Services Proprietary Limited on 1 September 2018, as the
businesses of these companies were consolidated into Efficient Financial
Services Proprietary Limited from this date.

The business combinations concluded by the Group for the period, related to
interests in various financial advisory client bases which were acquired.
Goodwill is tested annually for impairment at cash-generating unit level between
July and August each year.

5. Intangible assets
                                                Customer
                                           contracts and
                                  Trade         customer    Computer
                                  names    relationships    software     Total
Unaudited - for the six months    
ended 28 February 2019            R'000            R'000       R'000     R'000
Opening balance                   1 255          118 595       3 352   123 202
Additions                             -                -           5         5
Amortisation                        (53)          (6 685)       (880)   (7 618)
Acquired through business         
combinations                          -            2 252           -     2 252
Closing balance                   1 202          114 162       2 477   117 841
                                  
                                                Customer
                                           contracts and
                                  Trade         customer    Computer
                                  names    relationships    software     Total
Unaudited - for the six months    
ended 28 February 2018            R'000            R'000       R'000     R'000
Opening balance                   1 361          124 283       4 921   130 565
Additions                             -                -         137       137
Amortisation                       (139)          (6 195)       (925)   (7 259)
Disposals                             -             (956)          -      (956)
Acquired through business         
combinations                          -            3 618           -     3 618
Closing balance                   1 222          120 750       4 133   126 105
                                  
                                                Customer
                                           contracts and
                                  Trade         customer    Computer
                                  names    relationships    software     Total
Audited - for the year ended      
31 August 2018                    R'000            R'000       R'000     R'000
                                  
                                  
                                  
                                  
Opening balance                   1 361          124 283       4 921    130 565
Additions                             -              -           238        238
Amortisation                       (106)          (12 840)    (1 807)   (14 753)
Disposals                             -              (956)         -       (956)
Acquired through business         
combinations                          -              8 108         -      8 108
Closing balance                   1 255          118 595       3 352    123 202
                                                                                
6. Deferred tax
                                       Unaudited      Unaudited        Audited
                                    at 28-Feb-19   at 28-Feb-18   at 31-Aug-18
                                           R'000          R'000          R'000
Deferred tax assets                      132 174         24 994        138 933
Deferred tax liabilities                 (30 573)       (31 178)       (31 438)
Net deferred tax                         101 601         (6 184)       107 495
Opening balance                          107 495        (18 004)       (18 004)
Acquired through business          
combinations                                (630)        (1 010)        (2 274)
Disposal of businesses                         -            268            268
Charge recognised in profit        
or loss                                   (5 264)        12 562        129 415
Charge recognised in other         
comprehensive income                           -              -         (1 910)
Closing balance                          101 601         (6 184)       107 495
Deferred tax comprises the         
following temporary differences:   
Accruals and provisions                    6 100         12 050         13 219
Income received in advance                   511              -            394
Fair value adjustments on          
investments                                  186            174            177
Profit-share cancellation          
liabilities                                9 255              -        120 400
Calculated tax losses                    122 890         18 502         11 588
Prepaid expenses                          (1 904)        (1 506)        (1 406)
Intangible assets                        (32 782)       (35 002)       (34 222)
Property and equipment                    (2 655)          (402)        (2 655)
                                         101 601         (6 184)       107 495

A significant portion of amounts due in respect of the profit-share cancellation
transaction was settled during the period, thus explaining the
increase in deferred tax attributable to calculated tax losses and the decrease
in deferred tax attributable to the profit-share cancellation liabilities.

7. Share capital and share premium
                                    Unaudited at   Unaudited at     Audited at
                                       28-Feb-19      28-Feb-18      31-Aug-18
                                           R'000          R'000          R'000
Share capital
Authorised
361 350 000 ordinary shares of
R0.00000277 each                               1              1              1
Issued
89 165 353 (28 February 2018: 
90 176 422 and 31 August 2018: 
89 494 783) ordinary shares 
of R0.00000277 each                            -              -              -
Share premium on shares issued
Opening balance                          145 809        150 325        150 325
Repurchase of shares                      (1 375)        (1 680)        (4 516)
Closing balance                          144 434        148 645        145 809

                                    Unaudited at   Unaudited at     Audited at
                                       28-Feb-19      28-Feb-18      31-Aug-18
                                           R'000          R'000          R'000
Reconciliation of number of 
shares in issue
Opening balance                           89 495         90 593         90 593
Repurchase of shares                        (329)          (417)        (1 098)
Closing balance                           89 165         90 176         89 495

8. Convertible loan
                                    Unaudited at   Unaudited at     Audited at
                                       28-Feb-19      28-Feb-18      31-Aug-18
                                           R'000          R'000          R'000
Equity component                         138 981              -        138 981
Current liability                         20 578              -         19 202
                                         159 559              -        158 183

The loan was advanced to the Group by the profit-share cancellation nominees
on 31 August 2018 as part of the profit-share cancellation transaction. The loan
will either be settled in cash or in ordinary shares to be issued in Efficient Group
Limited to the parties. The loan will be settled or converted to issued shares by
no later than 30 August 2019.

Should the loan be settled by conversion to issued share capital, such shares
will be issued at a price of 530 cents and the maximum number of shares to
be issued will amount to 29 845 849 to the nominees.

Due to the mandatory interest being charged on the loan, the loan is considered
to be a compound financial instrument and has an equity and debt portion as
indicated above.

9. Loans and borrowings
                                         Unaudited at  Unaudited at  Audited at
                                            28-Feb-19     28-Feb-18   31-Aug-18
                                                R'000         R'000       R'000
Forward purchase liabilities                    7 352        32 113       6 916
Dividend liability                                  -         2 359           -
Contingent consideration liabilities            1 590         5 636       1 599
Vendor liabilities for book acquisitions        3 181           325       3 554
Working capital loans                         272 800        12 263      35 367
Mortgage loans                                 27 518        29 038      28 314
Loans from non-controlling interests            1 525         1 380       1 451
Profit-share cancellation liabilities          43 508             -     271 817
                                              357 474        83 114     349 018
Non-current liabilities                       304 220        38 380      88 979
Current liabilities                            53 254        44 734     260 039
                                              357 474        83 114     349 018

The forward purchase liabilities and dividend liability relate to the acquisition
of Select Manager Proprietary Limited and its subsidiaries, which took effect
on 1 March 2018. The liabilities are due to be settled by 4 June 2019. The
contingent consideration liabilities relate to the acquisition of W-Allen White
Brokers Proprietary Limited and Secure Capital Investments Proprietary Limited.

The working capital loans and mortgage loans are payable to Standard Bank of
South Africa Limited. Included in the working capital loans payable is an
amount of R240 million which was borrowed to finance a portion of the profit-
share cancellation expense which became payable on 31 August 2018. The
profit-share cancellation expense which was due, was settled during
September 2018.

10. Analysis of financial assets and financial liabilities
The fair values of financial assets and liabilities measured at fair value in the
statement of financial position can be summarised as follows:
                                          
                                              Fair value hierarchy level
                                          Level 1  Level 2  Level 3   Total
Unaudited at 28 February 2019               R'000    R'000    R'000   R'000
Financial assets                                                     
Inyosi enterprise development                                        
portfolio investment                            -        -    1 013   1 013
Unit-linked investments                     3 384        -        -   3 384
                                            3 384        -    1 013   4 397
Financial liabilities                                                
Business acquisition liabilities                -        -   (1 590) (1 590)
                                                -        -   (1 590) (1 590)

                                             Fair value hierarchy level
                                          Level 1  Level 2  Level 3   Total
Unaudited at 28 February 2018               R'000    R'000    R'000   R'000
Financial assets                          
Unit-linked investments                     1 485        -        -   1 485
                                            1 485        -        -   1 485
Financial liabilities                     
Business acquisition liabilities                -        -  (40 108)(40 108)
                                                -        -  (40 108)(40 108)

                                               Fair value hierarchy level
                                          Level 1  Level 2  Level 3   Total
Audited at 31 August 2018                   R'000    R'000    R'000   R'000
Financial assets                          
Inyosi enterprise development portfolio   
investment                                      -        -    1 004   1 004
Unit-linked investments                     2 481        -        -   2 481
                                            2 481        -    1 004   3 485
Financial liabilities                     
Business acquisition liabilities                -        -   (8 515) (8 515)
                                                -        -   (8 515) (8 515)

There were no transfers of any financial instruments between fair value hierarchy
Levels 1, 2 and 3 during any of the reporting periods.

The carrying values of all financial instruments not presented at fair value on
the statement of financial position are reasonable approximations of their fair
values.

Business acquisition liabilities are included in the "Loans and borrowings" line
on the statement of financial position. These include forward purchase liabilities,
committed dividend liabilities to legal non-controlling interest shareholders as
well as contingent consideration liabilities.

Valuation techniques and inputs used in the fair value measurement of Level 3
financial instruments
Business acquisition liabilities
Business acquisition liabilities are valued at the present value of the expected
payments set out in the contracts. The effect of discounting these liabilities
was not considered to be material.

The unobservable inputs used for calculating the fair value of the forward
purchase liabilities, contingent consideration liabilities and dividend liabilities for
contractual dividends include budgets and forecasts with estimated annual profit
growth rates, planned independent financial advisor book buys and free cash flows.

As there is a contractual maximum purchase price that was used in calculating
the business acquisition liabilities, or the liabilities are directly linked to the
performance of the related entity, the Group's profit is not materially sensitive
to the inputs of the models applied when calculating fair value.

Inyosi enterprise development portfolio investment
The significant unobservable inputs for determining the fair value of the Inyosi
enterprise development portfolio investment include the number of units
allocated in the investment, the price per unit as derived from the reporting
date asset management valuation statement, the value of the initial investment
relative to the market value of the underlying securities which the investment
comprises of as well as the composition of the underlying securities. At
28 Feb 2019, the Group held 1 009 206 units (31 Aug 2018: 997 399 units) in
the investment portfolio at a price per unit of 100.36 cents (31 Aug 2018:
100.64 cents). The fair value of the investment would increase (decrease) with
a change in any of the inputs.

                                       Unaudited at   Unaudited at   Audited at
                                          28-Feb-19      28-Feb-18    31-Aug-18
                                              R'000          R'000        R'000
Opening balance                              (8 515)       (43 697)     (43 697)
Fair value adjustments                
for the period                        
recognised in profit                  
or loss                                           -         (1 471)       1 666
Liabilities now measured              
at amortised cost                             6 916              -            -
Payments and settlements              
during the period                                 -          5 060       33 516
Closing balance                              (1 599)       (40 108)      (8 515)

11. Cash generated from operations
                                       Unaudited at   Unaudited at   Audited at
                                          28-Feb-19      28-Feb-18    31-Aug-18
                                              R'000          R'000        R'000
Profit/(loss) before taxation                29 063         27 679     (399 711)
Adjustments for:                       
Depreciation on property               
and equipment                                 1 120          1 072        2 429
Amortisation on intangible             
assets                                        7 618          7 259       14 753
Dividend income from other             
investments                                     (61)           (38)         (25)
Profit on disposal of                  
equipment                                       (21)          (214)           -
Profit on disposal of                  
customer contracts                     
and customer relationships                        -         (1 342)      (1 342)
Re-measurement of loans                
and borrowings at fair value           
through profit or loss                            -          1 618       (1 486)
Gain on settlement of loans            
and borrowing at amortised cost                   -              -         (562)
Fair value adjustments on              
investments at fair value              
through profit or loss                            1            190           97
Realised fair value adjustments        
on available-for- sale investments                -              6            -
Finance income                               (3 379)        (2 358)      (7 123)
Finance costs                                19 564          1 328        5 565
Bad debts expense                                 -              -        5 665
Impairment of goodwill                            -              -          350
Profit-share cancellation              
expense funded through                 
loans and borrowings                          8 333              -      430 000
Impairment of investments              
in equity-accounted associates                    -              -          320
Share of losses/(profits) from         
investments in equity-accounted        
associates, net of taxation                      20           (540)        (913)
Operating profit before                
changes in working capital                   62 258         34 660       48 017
Changes in working capital:            
Trade and other receivables                   9 577         19 661        6 693
Trade and other payables                    (66 132)       (31 100)      (9 990)
Provisions                                      (14)          (246)        (361)
                                              5 689         22 975       44 359

12. Adoption of new accounting standards
The Group has adopted the following new accounting standards as issued by 
the IASB, which were effective for the Group from 1 September 2018:
- IFRS 15 (Revenue from Contracts with Customers)
- IFRS 9 (Financial Instruments)

Upon adoption of IFRS 9, the Group no longer has any financial instruments that
will be measured at fair value through other comprehensive income.

The changes were applied retrospectively without restating comparative figures.
If any differences were identified they would have been taken to opening retained
earnings, however the impact of the adoption of IFRS 15 and IFRS 9 was
immaterial and no adjustments were processed in these results presented.

13. Events after the reporting period
On 1 March 2019, the Group disposed of its entire interest in Efficient IDS
Proprietary Limited.

On 1 April 2019, the Group acquired a controlling interest in Dinamika Fonds
Bestuurders Proprietary Limited.

No other events material to the understanding of these results has occurred
between the end of the reporting period and the date of approval of these results.

COMPANY INFORMATION
GROUP COMPANY SECRETARY
Acorim
t: +27 (0)11 325 6363
e: efficient@acorim.co.za
13th Floor
Illovo Point
68 Melville Road
Illovo
Sandton
2196

LEGAL ADVISOR
Adams and Adams Attorneys
4 Daventry Street
Lynnwood Manor
Pretoria
0081

AUDITORS
KPMG Incorporated
(Registration number 1999/021543/21)
KPMG Crescent
85 Empire Road
Parktown
2193

TRANSFER SECRETARIES
Link Market Services South Africa (Pty) Ltd
(Registration number 2000/007239/07)
13th Floor, Rennie House
19 Ameshoff Street
Braamfontein
(PO Box 4844, Johannesburg, 2000)

SPONSOR
Merchantec Capital
(Registration number: 2008/027362/07)
13th Floor
Illovo Point
68 Melville Road
Illovo
Sandton
2196
(PO Box 41480, Craighall, 2024)

REGISTRATION AND CONTACT DETAIL
Incorporated in the Republic of South Africa
(Registration number 2006/036947/06)
JSE share code: EFG
ISIN: ZAE000151841
Telephone: +27 (0)87 944 7999

REGISTERED OFFICE AND POSTAL ADDRESS
81 Dely Road
Hazelwood
Pretoria
0081
South Africa
t: +27 (0)87 944 7999
e: info@efgroup.co.za
http://www.efgroup.co.za






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