Short-Form Unaudited Condensed Results for the six months ended 31 August 2021 and Cash Dividend Declaration
ISA Holdings Limited
Incorporated in the Republic of South Africa
(Registration number 1998/009608/06)
Share code: ISA
(“ISA” or “the Company”)
SHORT-FORM UNAUDITED CONDENSED RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST
2021 AND CASH DIVIDEND DECLARATION
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 Aug 21 31 Aug 20 28 Feb 21
Change R'000 R'000 R'000
Highlights from Statement
of Comprehensive Income
Turnover 8% 31,810 29,555 67,316
other income and expenses -4% 18,264 18,991 38,505
Profit after tax -14% 6,693 7,737 12,946
Earnings per share (cents) -14% 4.3 5.0 8.3
Highlights from Statement of
Total assets 0.3% 82,156 81,883 74,471
Cash and cash equivalents -8% 48,819 53,277 49,261
Equity -2% 64,318 65,363 62,773
Total liabilities 8% 17,838 16,520 11,698
Dividends and distribution
Ordinary dividend per share
declared for the period (cents) -14% 4.3 5.0 3.3
Ordinary dividend per share
Paid during the period (cents) 100% 3.3 - 5.0
Net asset value per share
at end of period (cents) -2% 41.2 41.9 40.2
Headline earnings per
share (cents)* -14% 4.3 5.0 8.3
Diluted headline earnings per
share (cents)* -14% 4.3 5.0 8.3
* There have been no reconciling items that would result in a change to the
Headline earnings per share and the Diluted headline earnings per share.
I am pleased to present our results for the six months ended 31 August 2021
("the current reporting period"), which continue to be underpinned by a high
portion of recurring revenue, a robust balance sheet and strong cash flows.
Despite the challenging trading conditions in which we operate, together with
the continued pressure on the local economy, overall performance remains
Turnover increased by 8% during the current reporting period to R31.8 million
compared to the previous corresponding reporting period (“the prior reporting
period”), of which 85% is subscription derived and includes both third-party
product subscriptions and our Managed Security Service offerings that
features MSS Pulse, our internally developed security infrastructure
management and monitoring framework platform.
Profit before other income and expenses declined by 4% during the current
reporting period to R18.3 million, representing a gross margin of 57%
compared to the prior reporting period’s gross margin of 64%. This reduction
in gross margin is to be expected as our revenue mix shifts to include more
product sales, as opposed to the heavy concentration of higher-margin
professional and managed service revenue structures seen in the prior
Other income and operational expenditure increased by 13% to R10.1 million
compared to R9.0 million in the prior reporting period. This includes a
foreign exchange revaluation cost of R1.0 million in the current reporting
period compared to a foreign exchange revaluation profit of R2.0 million in
the prior reporting period. If we were to exclude the effects of our foreign
exchange revaluation, other income and operational expenditure would have
decreased by a pleasing 17% to R9.1 million from R11.1 million in the prior
reporting period. At the close of the current reporting period, 83% of our
R48.8 million cash reserve was held in Dollars and Pounds, and the balance
was held in Rands.
Most pleasing was the 110% increase in our share of profits from our equity-
accounted investment, to R603 000. DataProof recently launched a division
focusing on records management and we are most encouraged by the early
successes in this division.
Total comprehensive income attributable to equity shareholders for the
current reporting period decreased to R6.7 million from R7.7 million in the
prior reporting period, representing a decline of 14% in headline and
earnings per share to 4.3 cents from 5.0 cents.
Management notes the significant increase in both trade receivables and
payables, explaining that this is largely a factor of deal-flow timing as
opposed to any fundamental change in their cash management practice.
Illustratively, of the trade receivables at the close of the current
reporting period, 96% has been receipted by the time of writing this report;
and similarly, 98% of trade payables has already been settled.
I am pleased to announce that the board has declared an interim dividend to
shareholders for the six months ended 31 August 2021 of 4.3 cents per share,
which will be subject to the dividend tax legislation.
The salient dates will be as follows:
Declaration date Friday, 12 November 2021
Last day to trade Tuesday, 7 December 2021
Shares trade ex-dividend Wednesday, 8 December 2021
Record date Friday, 10 December 2021
Payment date Monday, 13 December 2021
Share certificates may not be dematerialised or rematerialised between
Wednesday, 8 December 2021 and Friday, 10 December 2021, both days inclusive.
In terms of the dividend tax legislation, effective 1 April 2012, the
following additional information is disclosed:
- This is a dividend as defined in the Income Tax Act, 1962, and is payable
from income reserves.
- The South African dividend tax (“DT”) rate is 20%.
- The DT to be withheld by the Company in respect of the ordinary dividend
amounts to 0.86 cents per share.
- The net ordinary dividend payable to shareholders who are not exempt from
DT is therefore 3.44 cents per share, while a gross ordinary dividend
of 4.3 cents per share is payable to those shareholders who are exempt
- The issued share capital of the Company at the declaration date comprises
170 592 593 ordinary shares.
- The Company’s income tax reference number is 9340/150/71/4.
This short-form announcement is the responsibility of the directors of the
Company. It contains only a summary of the information in the full
announcement (“Full Announcement”) and does not contain full or complete
details. Any investment decisions by investors or shareholders should be
based on the consideration of the Full Announcement. The Full Announcement is
and is also published on the Company’s website at
Both the short-form announcement and the Full Announcement are also available
for inspection at the registered offices of ISA and the Designated Adviser,
Merchantec Capital, during business hours, and copies may be obtained at no
cost on request from the Company Secretary who is contactable on
+27 11 325 6363 or email@example.com.
On behalf of the board, I would like to take this opportunity to thank the
ISA team for their continued dedication and hard work. My appreciation is
also extended to my colleagues on the board for their wise counsel and
valuable input, as well as to all stakeholders, customers and vendors for
For and on behalf of the board,
Chief Executive Officer
12 November 2021
Directors: CS Katz (Chief Executive Officer), PJG Green (Chief Technical
Officer), P Mogoboya (Financial Director), AJ Naidoo#, C. Pillay#, DC
Seaton*, N Maphothi*, O Seku*(Chairperson)
* Independent non-executive
Designated Adviser: Merchantec Capital
Date: 12-11-2021 11:10:00
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