PBT GROUP LIMITED – Unaudited Interim Results for the six months ended 30 September 2018

2018/12/07 15:15:00
SENS announcement for JSE listed company: PBG
                        

PBG 201812070052A
Unaudited Interim Results for the six months ended 30 September 2018

PBT Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1936/008278/06)
Share code: PBG
ISIN: ZAE000256319
(‘PBT Group’ or ‘the Company’ or ‘the Group’)

Unaudited Interim Results
for the six months ended 30 September 2018

COMMENTARY
FINANCIAL RESULTS
During the period under review, PBT Group Limited (PBT Group
or the Group) finalised and implemented the disposal of two
non-core assets, i.e. Prescient Capital Proprietary Limited
and its subsidiaries (Prescient Capital) and equity shares in
Prescient Holdings Proprietary Limited (Prescient Holdings).

Accordingly, this has been accounted for as discontinued
operations in the financial statements. Subsequent to this
transaction and the 1-for-10 share consolidation, the total
number of shares in issue reduced to 136 418 749. PBT Group
Limited, at the date of this report, owns 27 018 804 PBT Group
Limited shares as treasury shares. Refer to note 4 for more
information.

Total revenue from continuing operations for the period
was R281 million (September 2017: R283.5 million) with profit
before tax for continuing operations being R13.8 million
(September 2017: R11.6 million). The total profit after tax for
continuing operations was R7.2 million (September 2017:
loss of R1.6 million).

Operating expenses increased over the period mainly
as a result of large once-off expenditures relating to the
expansion into Europe and resultant setup costs. Due to
internal restructuring some expenses were reallocated from
cost of sales to operating expenses during the period.

As a result of the decrease in our Middle East and Africa (MEA)
business unit, foreign withholding taxes have decreased from
R10 million to R2.6 million, which has normalised the tax for
the current period in comparison to the prior period.

Earnings per share (EPS) for continuing operations was
0.22 cents per share (September 2017: loss of 0.33 cents
per share) and headline earnings per share (HEPS) was
0.23 cents per share (September 2017: loss of 0.33 cents per
share). The EPS and HEPS were calculated prior to the share
consolidation and cancellation of treasury shares which
occurred after the interim period.

REVIEW OF OPERATIONS
During the period under review, PBT Group operationally
had three major areas of activity:
– The exiting and reassignment of employees of the
MEA business unit.
– Establishment of PBT Group in Europe;
– The strategic appliance and adjustment to modern data
processing and availability with the South African market.

Reassignment of the MEA business unit
PBT Group has, for all practical purposes, exited its operations
in the MEA segment of the business. We are pleased to
report that the bulk of the revenue lost has been replaced
by growth in the remaining components of the business.

Reassigning consultants whilst phasing out existing
contractual obligations towards clients in the region
was challenging and required a fine balancing act and
dedicated effort. During the reassignment phase, the
local market had to be protected to avoid a perception of
flooding, whilst significant cost was absorbed by the local
business units with regards to reskilling during the transition
phase. It was successfully achieved in the midst of a rather
poor economic climate and a strong indication of change in
data trends. The initiative to expand into the United Kingdom
and Europe followed, providing the opportunity to research
new data trends, whilst creating a new revenue stream.

Establishment of PBT Group in Europe
The Group embarked on this new venture with a Merger and
Acquisition approach, whilst also participating in various
Proof of Concept (PoC) exercises. PBT Group’s approach
to data was compared to that of the first world, focusing
on three major aspects namely Artificial Intelligence (AI),
Data Engineering and Visualisation. During an eight-month
period, 37 companies across the Netherlands, United
Kingdom, Ireland and Sweden were engaged. It was soon
evident that change was on the horizon, especially with
the adoption of AI and the impact it will have on our
Company’s core strength, data engineering. Our current
Advanced Analytics approach is not AI, but an array
of static statistical models and the difference is mostly
seen when Machine Learning (ML) is applied within the AI
world. As a result of a high adoption and productionisation
rate in Europe, especially the Netherlands, PBT Group
had to enter into strategic relationships with selected
companies. This enabled the Group to be exposed to the
combination of AI, ML, Data Engineering, Visualisation and
the relative cloud platforms. Strategic partnerships have
been signed with four companies in the Netherlands and
two in Ireland, whilst negotiations with a British company
is in an advanced stage.

South African market
Despite a challenging South African economy, the phasing
out of the MEA business unit and adopting new learnings, all
in the same period under review, PBT Group has positioned
itself well for the future. As a direct result of successful PoC’s
in Europe, projects have been secured on the three major
cloud platforms, namely Google Cloud Platform (GCP),
Microsoft Azure and Amazon Web Services (AWS), whilst we
are also at the forefront with regards to Visualisation trends.
The local business is involved in two major initiatives. The
cognitive project at one of the leading financial institutions
in South Africa is a stepping stone to strategically position
ourselves as the leading data and analytics company, not
only in South Africa, but potentially in Europe as well. The
open source technology applied in this project is in high
demand worldwide across industries. Another project of
importance is the renewal project in partnership with one
of the leading global business consulting and audit firms.
The technology used in this instance broadens our industry
scope to manufacturing, an industry with considerable
AI possibilities. The reskilling of the existing PBT Group
consulting base will inevitably require capital investment
to adopt to new data trends. Our more traditional business
remains stable and in demand and should remain as such
for the foreseeable future. The capacity model for Europe
is taking shape, which will not only create foreign revenue,
but also opportunity to apply experience vice versa, as well
as the prospect for consultants to work abroad. Altogether,
a period full of action, with a foundation having been laid
for a new wave and exciting time ahead.

B-BBEE
Various measures have been put in place during the first
six months of the financial year to address the impact which
the ICT Amended Codes of Good Practice have had on
PBT Group’s B-BBEE status. These initiatives will ensure that
the Group significantly and satisfactorily improves its B-BBEE
rating by the end of the 2019 financial year.

During 2018, PBT Group successfully completed another
Business Intelligence internship programme and was able to
provide permanent employment opportunities to all of the
participating candidates. In addition to this bespoke initiative
which was initiated in 2004, the Group also identified an
opportunity to partner with an external training provider to
support a learnership focused on educating and upskilling
disabled BEE candidates. This partnership will further
enhance the Group’s contribution towards transformation
in South Africa and upliftment of our society.

DIVIDEND
Biannually, the directors consider the payment of a dividend,
taking into account prevailing circumstances and future
cash and capital requirements of the Group, in order to
determine the appropriate dividend in respect of a particular
financial reporting period.

No dividend has been declared for the six months ended
30 September 2018 (30 September 2017: Rnil).

CHANGES TO THE BOARD OF DIRECTORS
There were no changes to the Board during the period and
subsequent to the end of the period under review.

FORWARD-LOOKING STATEMENTS
This announcement contains certain forward-looking
statements with respect to the financial condition and results
of the operations of PBT Group that, by their nature, involve
risk and uncertainty because they relate to events and
depend on circumstances that may or may not occur in the
future. These may relate to future prospects, opportunities
and strategies. If one or more of these risks materialise, or
should underlying assumptions prove incorrect, actual results
may differ from those anticipated. By consequence, none
of the forward-looking statements have been reviewed or
reported on by the Group’s auditors.

STATEMENT OF FINANCIAL POSITION

Unaudited Unaudited Audited
as at as at as at
30 September 30 September 31 March
2018 2017 2018
Note R’000 R’000 R’000

ASSETS
Non-current assets 172 340 303 665 170 297
Property and equipment 5 170 7 226 6 031
Goodwill and intangible assets 136 011 262 694 136 341
Deferred tax asset 3 093 3 768 2 139
Other financial assets 28 066 29 977 25 786
Current assets 140 811 286 237 187 615
Inventory – 9 887 –
Trade and other receivables 91 541 119 461 91 269
Other financial assets 2 313 – 3 206
Taxation receivable 3 264 174 1 817
Cash and cash equivalents 43 693 49 752 34 202
Assets held-for-sale – 106 963 57 121
Total assets 313 151 589 902 357 912
EQUITY
Share capital 4 117 935 121 286 117 805
Translation reserve 1 995 19 064 12 909
Treasury shares (94 600) (49 596) (52 446)
Retained income 233 418 406 243 221 402
Total equity attributable to owners of the Company 258 748 496 997 299 670
Non-controlling interests 11 016 9 755 6 916
Total equity 269 764 506 752 306 586
LIABILITIES
Non-current liabilities 180 28 125 184
Deferred tax liability 180 3 125 184
Loans payable – 25 000 –
Current liabilities 43 207 55 025 51 142
Trade and other payables 33 587 26 604 35 853
Current tax payable 962 3 928 1 774
Provisions 8 457 12 124 6 791
Bank overdraft 201 59 152
Liabilities held for sale – 12 310 6 572
Total liabilities 43 387 83 150 51 326
Total equity and liabilities 313 151 589 902 357 912

STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
Unaudited Unaudited Audited
six months six months for the year
ended ended ended
30 September 30 September 31 March
2018 2017 2018
Continuing operations Notes R’000 R’000 R’000

Revenue 281 033 283 485 556 094
Cost of sales (213 215) (234 993) (457 972)
Gross profit 67 818 48 492 98 122
Other income 1 182 2 184 2 867
Profit/(loss) on exchange differences 2 562 601 (4 409)
Impairment losses – – (127 041)
Other operating expenses (58 757) (40 393) (87 682)
Operating profit/(loss) 12 805 10 884 (118 143)
Investment income 1 486 2 791 6 035
Finance costs (524) (2 109) (5 191)
Other non-operating losses – – (53)
Profit/(loss) before taxation 13 767 11 566 (117 352)
Taxation 5 (6 575) (13 157) (22 018)
Profit/(loss) from continuing operations 7 192 (1 591) (139 370)
Discontinued operations
Profit/(loss) from discontinued operations 3 9 114 897 (42 281)
Profit/(loss) for the period/year 16 306 (694) (181 651)
Other comprehensive income:
Items that may be reclassified to profit or loss:
Exchange differences on translating foreign operations (10 915) (8 882) 193
Other comprehensive (loss)/income for the period/year net of taxation (10 915) (8 882) 193
Total comprehensive income/(loss) for the period/year 5 391 (9 576) (181 458)
Profit/(loss) attributable to:
Owners of the parent:
From continuing operations 3 092 (5 255) (145 836)
From discontinued operations 9 114 897 (42 281)
12 206 (4 358) (188 117)
Non-controlling interest:
From continuing operations 4 100 3 664 6 466
Total comprehensive income/(loss) attributable to:
Owners of the parent 1 291 (13 240) (187 924)
Non-controlling interest 4 100 3 664 6 466
5 391 (9 576) (181 458)
Notes to the statement of comprehensive income
Number of shares issued (thousands) 1 669 251 1 669 251 1 669 251
Weighted average number of shares (thousands) 1 395 729 1 585 272 1 499 206
Diluted weighted average number of shares (thousands) 1 395 729 1 585 272 1 499 206
Earnings per share (cents)
– Continuing operations 0.22 (0.33) (9.73)
– Discontinued operations 0.65 0.06 (2.82)
Diluted earnings per share (cents)
– Continuing operations 0.22 (0.33) (9.73)
– Discontinued operations 0.65 0.06 (2.82)
Headline earnings per share (cents)
– Continuing operations 2 0.23 (0.33) (1.35)
– Discontinued operations 2 0.09 0.06 (0.20)
Diluted headline earnings per share (cents)
– Continuing operations 2 0.23 (0.33) (1.35)
– Discontinued operations 2 0.09 0.06 (0.20)
Dividends and distributions per share (cents)
Interim dividend – – –
Capital reduction distribution – – 1.57

STATEMENT OF CHANGES IN EQUITY
Non-
Share Translation Treasury Retained controlling Total
R’000 capital reserve shares income Total interest equity

Balance at 1 April 2017 144 015 12 716 (7 316) 410 600 560 015 12 434 572 449
(Loss)/profit for the period – – – (4 357) (4 357) 3 664 (693)
Total other comprehensive income – 6 348 – – 6 348 – 6 348
Total comprehensive income for the period – 6 348 – (4 357) 1 991 3 664 5 655
Treasury shares bought – – (42 280) – (42 280) – (42 280)
Capital distribution (22 729) – – – (22 729) – (22 729)
Dividends declared during the period – – – – – (3 430) (3 430)
Loss of control – – – – – (2 913) (2 913)
Total contributions by and distributions to owners of the Company (22 729) – (42 280) – (65 009) (6 343) (71 352)
Balance at 30 September 2017 121 286 19 064 (49 596) 406 243 496 997 9 755 506 752
Balance at 1 October 2017 121 286 19 064 (49 596) 406 243 496 997 9 755 506 752
(Loss)/profit for the period – – – (184 841) (184 841) 2 802 (182 039)
Total other comprehensive income – (6 155) – (191) (6 346) – (6 346)
Total comprehensive income for the period – (6 155) – (185 032) (191 187) 2 802 (188 385)
Treasury shares bought – – (2 850) – (2 850) – (2 850)
Capital distribution (3 481) – – – (3 481) – (3 481)
Dividends declared during the period – – – – – (5 635) (5 635)
Change in ownership – – – – – (6) (6)
Total contributions by and distributions to owners of the Company (3 481) – (2 850) – (6 331) (5 641) (11 972)
Balance at 31 March 2018 117 805 12 909 (52 446) 221 211 299 479 6 916 306 395
Balance at 1 April 2018 117 805 12 909 (52 446) 221 211 299 479 6 916 306 395
Profit for the period – – – 12 206 12 206 4 100 16 307
Total other comprehensive income – (10 914) – – (10 914) – (10 914)
Total comprehensive income for the period – (10 914) – 12 206 1 292 4 100 5 392
Transfer of own shares – – (42 709) – (42 709) – (42 709)
Adjustment to treasury shares 130 – 555 – 685 – 685
Total contributions by and distributions to owners of the Company 130 – (42 154) – (42 024) – (42 024)
Balance at 30 September 2018 117 935 1 995 (94 600) 233 418 258 748 11 016 269 764

STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
six months six months for the
ended ended year ended
30 September 30 September 31 March
2018 2017 2018
R’000 R’000 R’000

Cash flows from operating activities
Cash generated from operations 19 327 75 292 100 371
Dividends received – 1 868 1 868
Interest received 1 486 922 4 167
Interest paid (524) (2 109) (5 191)
Tax paid (9 986) (20 433) (30 059)
Net cash flows from discontinued operations 791 2 072 –
Net cash inflow from operating activities 11 094 57 612 71 156
Cash flows from investing activities
Acquisition of property and equipment (657) (1 442) (2 017)
Sale of property and equipment 53 – 340
Acquisition of intangible assets (214) (134) (273)
Advance of long-term loans receivable – (2 334) –
Acquisition of financial assets at fair value (2 195) – (1 941)
Sale of financial assets 893 – 5 970
Net cash inflow from discontinued operations (937) (1 301) –
Net cash (outflow) from investing activities (3 057) (5 211) 2 079
Cash flows from financing activities
Acquisition of own shares – – (8 053)
Capital distribution – (22 729) (26 210)
Repayment of other financial liabilities – (10 000) (35 000)
Net cash flows from discontinued operations 407 (94) –
Cash inflow/(outflow) from financing activities 407 (32 823) (69 263)
Net increase in cash and cash equivalents 8 444 19 578 3 972
Effect of exchange rate fluctuations on cash held 998 40 (13)
Net cash and cash equivalents at the beginning of the period 34 050 30 075 30 091
Net cash and cash equivalents at the end of the period 43 492 49 693 34 050

NOTES TO THE CONDENSED
CONSOLIDATED INTERIM RESULTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2018

1. BASIS OF PREPARATION AND ACCOUNTING POLICIES
REPORTING ENTITY
PBT Group is a holding company domiciled in South Africa, listed on the JSE Limited under the category Technology:
Software and Computer Services. The unaudited condensed consolidated interim results of the Company comprise
the Company and its subsidiaries (together referred to as the Group or PBT Group).

STATEMENT OF COMPLIANCE
The unaudited condensed consolidated interim results have been prepared in accordance with International Financial
Reporting Standards (IFRS), IAS 34 Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the
Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council,
the requirements of the Companies Act, 71 of 2008 of South Africa and the JSE Listings Requirements.

BASIS OF PREPARATION
The accounting policies applied in the presentation of the unaudited condensed consolidated interim results are
consistent with those presented in the previous annual financial statements, except for the new standards that became
effective for the Group’s financial period beginning 1 April 2018.

The unaudited condensed consolidated interim results have not been audited or reviewed by the Group’s external
auditors.

These unaudited condensed consolidated interim results have been prepared in accordance with the historical cost
basis, under the supervision of the financial director, Murray Louw.

The unaudited condensed consolidated interim results are presented in Rand, which is the Group’s functional and
presentation currency, rounded to the nearest thousand.

The Board of Directors approved these interim results on 28 November 2018.

CHANGE IN ACCOUNTING POLICIES
The Group has adopted IFRS 15 Revenue from Contracts with Customers and IFRS 9 Financial Instruments from 1 April 2018.
IFRS 15 does not have a material effect on the Group’s financial statements.

JUDGEMENTS AND ESTIMATES
Preparing the unaudited condensed consolidated interim results requires management to make judgements, estimates
and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities,
income and expense. Actual results may differ from these estimates.

In preparing these unaudited condensed consolidated interim results, significant judgements made by management
in applying the Group’s accounting policies and key sources of estimation uncertainty were the same as those that
applied to the consolidated financial statements as at and for the year ended 31 March 2018.

SUBSEQUENT EVENTS
On 30 October 2018, as a result of the implementation of Special Resolution Number 1 at the general meeting held on
28 September 2018, 305 062 917 treasury shares were cancelled and delisted. Refer to note 4.

On 2 November 2018, as a result of the implementation of Special Resolution Number 2 at the general meeting held on
28 September 2018, a share consolidation on the basis of one ordinary share for every 10 authorised and issued ordinary
shares, with all fractional entitlements rounded down to the nearest whole number, was effective. Refer to note 4.

2. HEADLINE EARNINGS PER SHARE RECONCILIATION
Unaudited Unaudited Audited
six months ended six months ended year ended
30 September 30 September 31 March
2018 2017 2018
Gross Net Gross Net Gross Net
R’000 R’000 R’000 R’000 R’000 R’000

Continuing operations
Profit attributable to equity holders of the parent 3 093 (5 255) (145 836)
Adjusted for:
Add: Losses on disposal of property, plant and
equipment 141 110 – – – –
Add: Impairment loss on goodwill and intangible
assets – – – – 125 600 125 600
Headline earnings 3 203 (5 255) (20 236)
Discontinued operations
Profit attributable to equity holders of the parent 9 114 897 (42 281)
Adjusted for:
Add: Fair value measurement on discontinued
operations 12 842 12 842 – – – –
Less: Foreign currency translation reserve released
to profit or loss (20 723) (20 723) – – – –
Add: Restatement to fair value of discontinued
operations – – – – 16 371 16 371
Add: Impairment loss on goodwill and investments – – – – 26 477 26 477
Less: Change in fair value of investment property – – – – (3 545) (3 545)
Headline earnings 1 233 897 (2 978)
Headline earnings per share (cents)
– Continuing operations 0.23 (0.33) (1.35)
– Discontinued operations 0.09 0.06 (0.20)
Diluted headline earnings per share (cents)
– Continuing operations 0.23 (0.33) (1.35)
– Discontinued operations 0.09 0.06 (0.20)

SUBSEQUENT TO INTERIM PERIOD
Should the cancellation of treasury shares and share consolidation have been effective on 30 September 2018, earnings
per share and diluted earnings per share from continuing operations would have been 2.84 cents, earnings per share
and diluted earnings per share from discontinuing operations would have been 8.36 cents, headline earnings per
share and diluted headline earnings per share from continuing operations would have been 2.94 cents and headline
earnings per share and diluted headline earnings per share from discontinuing operations would have been 1.13 cents.

Headline earnings per share has been calculated in accordance with Circular 4/2018 issued by the South African
Institute of Chartered Accountants.

Diluted earnings per share is equal to basic earning per share. Diluted headline earnings per share is equal to headline
earnings per share.

3.DISCONTINUED OPERATIONS
On 28 September 2018, shareholders approved the transactions as previously communicated to shareholders in the
Circular and Supplementary Circular posted on 23 March 2018 and 28 August 2018 respectively.

The proposed transaction included the disposal by the PBT Group of Prescient Capital Proprietary Limited and its
subsidiaries (‘Prescient Capital’), where the AQC purchased Prescient Capital from the PBT Group by offering the
PBT Group shares owned by the AQC to the PBT Group. In addition, the AQC purchased the Prescient Holdings shares
owned by the PBT Group from the PBT Group by offering the PBT Group shares owned by the AQC to the PBT Group.

The proposed transactions have been completed, and Prescient Capital no longer forms part of PBT Group Limited.
The repurchased shares were treated as treasury shares from the date of the approval and thereafter cancelled and
delisted. Refer to note 4.

Unaudited Unaudited Audited
six months six months for the
ended ended year ended
30 September 30 September 31 March
2018 2017 2018
Results of discontinued operations R’000 R’000 R’000

Revenue 4 816 2 687 11 543
Other income 1 124 191 2 315
Expenses (4 770) (1 881) (56 302)
Operating profit/(loss) 1 170 997 (42 444)
Foreign currency translation reserve released to profit or loss* 20 723 – –
Fair value measurement on discontinued operations* (12 842) – –
Profit/(loss) before taxation 9 051 997 (42 444)
Taxation 63 (100) 163
Results from operating activities, net of tax 9 114 897 (42 281)
Profit for the period 9 114 897 (42 281)
Earnings per share (cents) 0.65 0.06 (2.82)
*IFRS adjustments from non-operating activities.

Cash flows from/(used in) discontinued operations
Net cash from operating activities 791 2 072 24 816
Net cash used in investing activities (937) (1 301) 30 405
Net cash from financing activities 407 (94) (54 363)
Net cash flow for the period 261 677 858
Major classes of assets and liabilities held for sale
Property and equipment – 120 48
Investment property – 51 297 36 428
Goodwill and intangible assets – 22 722 –
Long-term loans receivable – 161 288
Investment in equity-accounted investee – 289 –
Financial assets at fair value through profit or loss – 26 225 17 777
Trade and other receivables – 4 009 920
Taxation receivable – 18 128
Cash and cash equivalents – 2 123 1 532
Deferred tax liability – (930) (303)
Long-term loans payable – (8 004) (5 260)
Trade and other payables – (3 377) (1 009)
Net assets and liabilities – 94 653 50 549
Consideration received in cash** – – (4 789)
Cash and cash equivalents – (2 123) (1 532)
Net cash inflow – (2 123) (6 321)
**A deposit of R4.8 million was received from Prescient Capital on 6 October 2017.

4. SHARE CAPITAL
Unaudited Unaudited Audited
six months six months for the
ended ended year ended
30 September 30 September 31 March
2018 2017 2018
R’000 R’000 R’000

Authorised
2 000 000 000 ordinary shares of no par value** – – –

Reconciliation of number of shares issued (thousands)
Reported as at 1 April 1 669 251 1 669 251 1 669 251

Number of shares as at 30 September 1 669 251 1 669 251 1 669 251
Treasury shares cancelled* (305 063) – –
Share consolidation** (1 227 769) – –

Number of shares as at date of report 136 419 1 669 251 1 669 251

63 581 251 unissued ordinary shares are under the control of the
directors in terms of a resolution of members passed at the last annual
general meeting. This authority remains in force until the next annual
general meeting.

Issued
Ordinary shares of no par value 117 935 121 286 117 805

Reconciliation of treasury shares during the period (thousands)
Opening balance as at 1 April 270 188 9 872 9 872
Purchased by PBT Group Limited – – 47 777
Purchased by subsidiary – 2 221 2 221
Specific repurchase as per specific authority granted* 305 063 209 407 210 318

Treasury shares as at 30 September 575 251 221 500 270 188
Treasury shares cancelled* (305 063)
Share consolidation** (243 169)

Treasury shares as at date of report*** 27 019

* On 28 September 2018, the shareholders approved Special Resolution Number 1 for the specific repurchase of 305 062 917 ordinary
shares and the subsequent cancellation of the treasury shares. The effective date of the cancellation of the treasury shares was
30 October 2018 and the shares were delisted.

** On 28 September 2018, the shareholders approved Special Resolution Number 2 for a share consolidation on the basis of one
ordinary share for every 10 authorised and issued ordinary shares, with all fractional entitlements rounded down to the nearest whole
number. The effective date of the share consolidation was 2 November 2018. As a result of the share consolidation, the number of
authorised shares in issue as at the date of this report is 200 000 000.

*** The Treasury shares as disclosed, are shares held by PBT Group Limited. As per Section 35(5) of the Companies Act, shares that are
acquired by a company have the same status as shares that have been authorised but not issued. In light of a number of share
transactions and pending corporate actions, the directors have decided to disclose the shares held by PBT Group Limited as
Treasury shares as contemplated in IAS 32.33.

5. INCOME TAX EXPENSE
Unaudited Unaudited Audited
six months six months for the
ended ended year ended
30 September 30 September 31 March
2018 2017 2018
R’000 R’000 R’000
Tax recognised in profit or loss
Current year
Local income tax – current period 5 094 6 500 8 431
Local income tax – recognised in current tax for prior periods (191) – (1 570)
Securities transfer tax – – 22
Withholding tax – Section 6quat(1C) – current period 1 261 6 523 6 826
Withholding tax – Section 6quat(1C) – prior period 1 369 3 496 8 832

7 533 16 519 22 541

Deferred tax expense
Originating and reversal of temporary differences (958) (3 362) (523)

Income tax expense on continuing operations 6 575 13 157 22 018

6. SEGMENT REPORT
The reportable segments for the current financial year are according geographical areas, namely South Africa,
Middle East/Africa, Australia and Europe.
-South Africa includes consulting and implementation of data, management information software and healthcare
administration services in the Republic of South Africa.
-Australia includes consulting and implementation of data, management information software and healthcare
administration services in Australia.
-Europe includes consulting and implementation of data, management information software in Europe.
-Middle East/Africa includes consulting and implementation of data, management information software in Middle East
and Africa.

CONTINUING OPERATIONS
South Africa Australia Europe Middle East/Africa Other Total
Sept Sept Mar Sept Sept Mar Sept Sept Mar Sept Sept Mar Sept Sept Mar Sept Sept Mar
2018 2017 2018 2018 2017 2018 2018 2017 2018 2018 2017 2018 2018 2017 2018 2018 2017 2018
R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000
Segment revenue 219 846 200 193 410 270 29 496 38 846 64 383 3 476 – – 28 215 44 446 80 958 – – 483 281 033 283 485 556 094
Segment profit/(loss) before tax 13 871 19 829 30 536 (608) 3 499 1 693 1 869 – – 1 072 (18 672) (46 377) (2 437) 6 910 380 13 767 11 566 (13 768)
Segment assets* 109 173 108 004 90 493 23 348 26 749 20 283 3 435 – – 14 247 57 140 26 046 27 281 37 119 28 305 177 484 229 012 165 125
Segment liabilities (28 063) (26 924) (27 633) (6 583) (7 851) (4 748) (56) – – (7 712) (34 122) (7 424) (973) (1 944) (4 948) (43 387) (70 841) (44 754)

DISCONTINUED OPERATIONS
South Africa Australia Europe Middle East/Africa Other Total
Sept Sept Mar Sept Sept Mar Sept Sept Mar Sept Sept Mar Sept Sept Mar Sept Sept Mar
2018 2017 2018 2018 2017 2018 2018 2017 2018 2018 2017 2018 2018 2017 2018 2018 2017 2018
R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000
Segment revenue – – – – – – – – – – – – 4 816 – 11 543 4 816 – 11 543
Segment profit/(loss) before tax – – – – – – – – – – – – 9 051 897 (19 559) 9 051 897 (19 559)
Segment assets* – – – – – – – – – – – – – 84 241 57 121 – 84 241 57 121
Segment liabilities – – – – – – – – – – – – – (12 310) (6 572) – (12 310) (6 572)

GROUP
South Africa Australia Europe Middle East/Africa Other Total
Sept Sept Mar Sept Sept Mar Sept Sept Mar Sept Sept Mar Sept Sept Mar Sept Sept Mar
2018 2017 2018 2018 2017 2018 2018 2017 2018 2018 2017 2018 2018 2017 2018 2018 2017 2018
R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000
Segment revenue 219 846 200 193 410 270 29 496 38 846 64 383 3 476 – – 28 215 44 446 80 958 4 816 – 12 026 285 849 283 485 567 636
Segment profit/(loss) before tax 13 871 19 829 30 536 (608) 3 499 1 693 1 869 – – 1 072 (18 672) (46 377) 6 614 7 807 (19 179) 22 818 12 463 (33 328)
Segment assets* 109 173 108 004 90 493 23 348 26 749 20 283 3 435 – – 14 247 57 140 26 046 27 281 121 360 85 426 177 484 313 253 222 246
Segment liabilities (28 063) (26 924) (27 633) (6 583) (7 851) (4 748) (56) – – (7 712) (34 122) (7 424) (973) (14 254) (11 520) (43 387) (83 150) (51 326)
* Goodwill is not managed as part of segment assets and has therefore been excluded.

COMPANY INFORMATION
Country of incorporation: South Africa

Nature of business and principal activities: Information management and data analytics services

Directors: Tony Taylor (Independent Non-Executive Chairman)
Pierre de Wet (Chief Executive Officer)
Murray Louw (Financial Director)
Cheree Dyers (Independent Non-Executive Director)
Herman Steyn (Non-Executive Director)
Arthur Winkler (Independent Non-Executive Director)

Audit and Risk Committee: Arthur Winkler (Chairman)
Cheree Dyers
Tony Taylor

Remuneration and Nomination Committee: Cheree Dyers (Chairman)
Herman Steyn
Tony Taylor
Arthur Winkler

Social and Ethics Committee: Cheree Dyers
Tony Taylor
Elizna Read

Company Secretary: Bianca Pieters
PBT House, 2 Mews Close, Waterford Mews, Century City, 7441, South Africa

Registered office: PBT House, 2 Mews Close, Waterford Mews, Century City, 7441, South Africa

Postal address: PO Box 276, Century City, 7446, South Africa

Registration number: 1936/008278/06

Auditors: BDO Cape Incorporated

Sponsor: Sasfin Capital, a member of the Sasfin Group

Transfer secretaries: Link Market Services South Africa Proprietary Limited
PO Box 4844, Johannesburg, 2000, South Africa
19 Ameshoff Street, Braamfontein, 2001, South Africa

JSE share code: PBG

ISIN: ZAE000256319

Website: www.pbtgroup.co.za

Date: 07/12/2018 03:15:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (‘JSE’).
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.

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