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TELEMASTERS HOLDINGS LIMITED - Reviewed Provisional Condensed Consolidated Financial Statements - Year Ended 30 June 2021 & Dividend Declaration

Release Date: 30/09/2021 13:46
Code(s): TLM     PDF:  
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Reviewed Provisional Condensed Consolidated Financial Statements - Year Ended 30 June 2021 & Dividend Declaration

(Registration Number: 2006/015734/06)
JSE Code: TLM ISIN: ZAE 000093324
(“TeleMasters” or “the Company”)


TeleMasters Holdings is a diversified technology investment company. Entities within the Group are
complementary towards each other with a key focus on enhancing digital transformation,
accelerating smart working environments and empowering the Gig economy. Our vision is to create
and accelerate shareholder value through responsible growth, acquisitions and investments.

The Group consists of the following portfolio of companies:

Catalytic Connections (Pty) Limited is a diversified ICT managed solutions provider to medium and
small enterprises through a comprehensive suite of products and services focused on digital
connectivity, cloud communications, cloud services and cloud security.

Contineo Virtual Communications (Pty) Limited operates a Next Generation Unified Communications
(“UC”) platform based on Cisco Broadsoft technology. The platform enables customers to migrate
all their voice and UC traffic into the cloud and transformed Contineo from a traditional wholesale
reseller of voice minutes into the largest independent wholesaler supplier of the Cisco Broadsoft
communications platform in South Africa.

PerfectWorx Consulting (Pty) Limited is a niche network systems integrator that builds and operates
networks for or with customers, supplies technology to build networks or provides specific solutions for
customer’s network requirements. It enjoys key technology partnerships with Cisco Meraki, Fortinet,
Oracle, exaware, Sonus and Juniper Networks, among others.

Ultra DataCentre (Pty) Limited (formerly ConexLink) built and operates a data centre located outside
of Pretoria. This data centre is a vendor & carrier neutral facility that features several unique data
centre capabilities including smart rack infrastructure, ultra-secure physical environment, and
connectivity vendor redundancy. Due to its location just outside the principal jurisdictions of many
other data centres, it specializes in ultra-secure disaster recovery capabilities but also functions as a
primary data centre for clients. Unique among data centres, it has massive and scalable utility power
availability. The building is extremely physically secure with national key point (bunker type)
construction. It has significant white space scalable on demand.


 • Decrease in earnings per share from 2.59 cents in previous period to a loss of 7.82 cents largely
   attributable to an increased loss allowance on trade receivables as well as increased
   depreciation on the re-assessment of the useful lives of assets
 • Gross profit margin improved to 49.3% from 39.6% in prior period
 • Cash and cash equivalents reduced due to further investment in equipment as well as the
   acquisition of the remaining 75% shares in ConexLink (subsequently renamed Ultra DataCentre)
 • 6.40 cents per share dividend declared in the period to date
 • Acquisition of 100% of Contineo and PerfectWorx successfully integrated

Salient Features
Extracted from the reviewed provisional condensed consolidated financial statements for the year
ended 30 June 2021

                                                                            30 June 2021      30 June 2020
                                                                                Reviewed           Audited
                                                                                       R                 R
  Revenue                                                                     76,012,774        79,666,284
  Operating (loss)/profit                                                     (4,541,167)        2,193,596
  Basic (loss)/earnings per share (cents)                                          (7,82)             2.59
  Diluted (loss)/earnings per share (cents)                                        (6,75)             2.59
  Headline (loss)/earnings per share (cents)                                       (7,82)             2.49
  Diluted headline (loss)/earnings per share (cents)                               (6,75)             2.49
  Net asset value per share (cents)                                                66.83             78.47
  Dividend paid per ordinary share (cents)                                          6.40              7.60

Dividend Declaration
Notice is hereby given that a gross interim cash dividend (Number 53) of 1.60 cents per share has
been declared and is payable to all shareholders recorded in the share register of the Company at
the close of business on Friday, 22 October 2021.

The dividend will be subject to the Dividends Tax that was introduced with effect from 1 April 2012. In
accordance with the provisions of the Listings Requirements of the Johannesburg Stock Exchange,
the following additional information is disclosed:

The dividend has been declared out of retained earnings;
   • The local Dividends Tax rate is 20%;
   • The gross local dividend is 1.60 cents per share for shareholders exempt from Dividends Tax;
   • The net local dividend is 1.28 cents per share for shareholders liable for Dividends Tax;
   • The Company has 50,500,000 ordinary shares in issue; and
   • The Company’s income tax reference number is 9683/978/14/3.

The following dates are applicable to the dividend: the last day to trade to be eligible for the dividend
will be Tuesday, 19 October 2021. Shares will trade ex-dividend from Wednesday, 20 October 2021.
The record date will be Friday, 22 October 2021 and payment of the dividend will be made on
Monday, 25 October 2021.

Share certificates may not be dematerialised / re-materialised between Wednesday, 20 October 2021
and Friday, 22 October 2021, both days inclusive. The certificated register will be closed during these
dates. Dividends in respect of certificated shareholders will be transferred electronically to
shareholders' bank accounts on payment date. Following the discontinuation of cheque payments
by most South African banks, TeleMasters no longer issues cheques and all payments will only be
made into a nominated bank account by electronic funds transfer. Shareholders who have not yet
provided their bank account details to JSE Investor Services Proprietary Limited (“JIS”) are reminded
to contact JIS on 086 154 6572 with their bank account details into which the dividends can be paid

Short-Form Announcement
The short-form announcement is the responsibility of the board of directors of TeleMasters and is only
a summary of the information contained in the reviewed provisional condensed consolidated
financial statements for the year ended 30 June 2021 and dividend declaration announcement (“full

The provisional consolidated annual financial results (“financial results”) were reviewed by Nexia
SAB&T who expressed an unmodified review conclusion. The auditor’s review conclusion is available
for inspection at the Company’s registered office.

This announcement does not contain full or complete details of the financial results. Any investment
decisions by investors and/or shareholders should be based on consideration of the full
announcement which stakeholders are encouraged to view. The full announcement is available on
the Company’s website ( and on the JSE Website:

Copies of the full announcement may be requested from the Company ( or
inspected at the Company’s registered office and/or the offices of the Designated Advisor, at no
charge, during office hours.

30 September 2021

Directors:            DJ Bate*#, MB Pretorius*, WF Steinberg*#, M Tappan*#, J Voigt,
                      JL Roos
                      (* non-executive # independent)
Registered address:   Ground Floor, Building 2, ATT House, Maxwell Office Park, Magwa Crescent
                      West, Waterfall City, 2090
                      (P.O. Box 68255 Highveld Park 0169)
Company secretary:    S Ramirez-Victor
Auditors:             Nexia SAB&T, 119 Witch-Hazel Avenue, Highveld Techno Park, Centurion
Transfer secretaries: JSE Investor Services Proprietary Limited, 13th Floor, 19 Ameshoff Street,
                      Braamfontein, 2017
Designated Advisor:   AcaciaCap Advisors (Pty) Ltd

Designated Advisor
AcaciaCap Advisors (Pty) Ltd

Date: 30-09-2021 01:46:00
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