Lesaka Released Connect Group Historical Results and Unaudited Pro Forma Financial Statements
In addition, the Company announced it will host a webcast on
Selected Highlights from Connect Financial Statements for the Year Ended
- Revenue increased to R5.1 billion, up 22%, underpinned by strong performance across all product lines;
- Gross Profit grew to R570 million up 37%, supported by strong revenue growth as well as an improvement in margins;
- Operating Profit for the year reached R241m up by 41% year on year; and
- EBITDA grew to R382m up 26%, outperforming EBITDA warranted in the Connect Group Transaction agreements (“Warranted EBITDA”).
“Following the completion of the acquisition, we are delighted to report that
Summary Financial Metrics
|Feb, 2022||Feb, 2021||Change|
|R millions||R millions|
|Gross Revenue||5 152||4 325||22||%|
|EBITDA (note 1)||382||304||26||%|
|Profit after Tax||124||75||65||%|
|Note 1 –EBITDA is a non-GAAP measure as described below under “Use of Non-GAAP Measures—EBITDA.” See Attachment 1 for a reconciliation of GAAP operating profit to EBITDA|
Periods used in preparing Pro Forma Financial Statements:
The pro forma accounts have been prepared using the following periods, in accordance with
- the unaudited pro forma combined balance sheet, which combines the historical balance sheets of the Company as of
December 31, 2021, and Connect Groupas of February 28, 2022as if the acquisition had occurred on December 31, 2021.
- the unaudited pro forma combined statement of operations for the six months ended
December 31, 2021, which combines the historical statements of operations of the Company for the six months ended December 31, 2021, and of Connect Groupfor the six months ended February 28, 2022, as if the acquisition had occurred on July 1, 2020.
- the unaudited pro forma combined statement of operations for the twelve months ended
June 30, 2021, which combines the historical statements of operations of the Company for the year ended June 30, 2021, and of Connect Groupfor the twelve months ended August 31, 2021, as if the acquisition had occurred on July 1, 2020.
The full Form 8-K/A can be found on our investor relations website at SEC Filings |
Webcast & Conference Call Information:
The Company management will be hosting a webcast and conference call on
- an overview of the combined group post acquisition;
- a discussion of the
Connect Groupstrategy and key products;
- an analysis of the Connect Group’s audited
28 February 2022financial statements, including:
- a revenue analysis by key product,
- an adjusted gross profit calculation and discussion,
- an EBITDA and cash flow analysis,
- a review of the pro forma net debt position after transaction closing,
- a review of the acquisition rationale and combined group strategy,
- a questions and answers session.
Participating on the webcast from Lesaka’s management team will be
Participants have the option to either:
- Watch the live results presentation by webcast using the webcast link below; or
- Listen to an audio only broadcast of the results, using the conference call information below.
https://www.corpcam.com/Lesaka30062022. Participants who want to submit their questions real-time will be able to do so utilizing the question functionality included in this link.
The conference call can be accessed by dialing in real time. Questions can be submitted through the conference call functionality. Below are the conference call access details:
|HD Web phone||Click here|
|011 535 3600|
|010 201 6800|
|1 508 924 4326|
|0 333 300 1418|
The event will be webcast live on the Company’s investor relations website at https://ir.lesakatech.com. A replay of the webcast will be made available on the investor relations website.
Use of Non-GAAP Measures
Earnings Before Interest Tax, Depreciation and Amortization “EBITDA”
EBITDA is GAAP operating profit adjusted for depreciation and amortization.
Management believes that the EBITDA metric enhances its own evaluation, as well as an investor’s understanding, of the Company’s financial performance. Attachment 1 presents the reconciliation between GAAP operating profit and EBITDA.
This announcement contains forward-looking statements that involve known and unknown risks and uncertainties. A discussion of various factors that may cause our actual results, levels of activity, performance or achievements to differ materially from those expressed in such forward-looking statements are included in our filings with the
Investor Relations Contact:
Media Relations Contact:
Reconciliation of operating profit to EBITDA for the years ended
|US GAAP||IFRS for SMEs|
|R ‘000||R ‘000||R ‘000||R ‘000|
|Amortization of intangible assets||48,392||48,546||48,392||48,546|
|Amortization of goodwill||-||-||41,053||41,201|
|Interest on funding for lending book||(9,566||)||(196||)||(9,566||)||(196||)|
(A) As agreed in the Connect transaction agreements.
Source: Lesaka Technologies, Inc.