Wrap Text
Publication Of Audited Consolidated Financial Statements For The Year Ended 31 August 2023 – Update Change Statement
AYO TECHNOLOGY SOLUTIONS LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1996/014461/06
JSE share code: AYO
ISIN: ZAE000252441
("AYO" or "the Company")
PUBLICATION OF AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 AUGUST 2023 – UPDATE TO CHANGE STATEMENT
Shareholders are referred to the 'Publication of Audited Consolidated Financial Statements for the year
ended 31 August 2023, Availability of Integrated Annual Report and Notice of virtual Annual General
Meeting' announcement released on SENS on 31 January 2024 ("Change Statement") and to the
subsequent announcement released on SENS on 2 February 2024 to correctly attach the Audited
Consolidated Annual Financial Statements for the year ended 31 August 2023 ("AFS") to the JSE
cloudlink.
The Change Statement included a description of the changes and circumstances that led to such
changes between the Reviewed Condensed Consolidated Financial Statements for the year ended
31 August 2023 ("Reviewed Results") published on SENS on 6 December 2023 and the AFS published
on 31 January 2024.
For completeness, shareholders are hereby provided with an update to the Change Statement which
now includes the Notes impacted by the aforementioned changes. As at the date of this publication there
have been no further changes to the numbers contained in the Change Statement and the AFS.
1. Adjustments
Changes between the Reviewed Results and the AFS comprise of:
• Write back of the VAT receivable asset after the final assessment by the Company's auditors.
In the Reviewed Results, it was previously expensed. The impacted line items in the financial
statements are as follows:
- Decrease in operating expenses R26.148 million.
- Increase VAT receivable R26.148 million.
- Decrease in retained loss R26.148 million.
• The changes in the allocation of amounts in the other operating losses of R24.221 million are
detailed in note 29 below.
The overall net impact on the loss after tax amounts to a decrease of R1.927 million from
R640.741 million to R638.814 million, resulting in loss per share ("LPS") decreasing by 0.56
cents per share from (180.53) cents to (179.97) cents. The change in headline loss per share
("HLPS") is an increase of 1.17 cents per share from (176.46) cents to (177.63) cents.
• As a result of the above, the following notes have changed:
- Note 15 Trade and other receivables
- Note 29 Operating expenses
- Note 30 Other operating losses
- Note 33 Earnings per share
Please see the financial statements extract below:
Change to the financial statements:
Consolidated statement of
financial position
as at 31 August 2023
Reviewed
AFS Results
31 August 2023 31 August 2023
Notes R'000 R'000 Change
Assets
Non-current assets 872 962 872 962
Property, plant and equipment 3 34 798 34 798 –
Right-of-use of assets 4 43 846 43 846 –
Goodwill 5 75 458 75 458 –
Intangible assets 6 109 524 109 524 –
Investments in equity-accounted joint
ventures and associates 7 60 151 60 151 –
Loans to related party companies 8 137 239 137 239 –
Other loans receivable 9 207 241 207 241 –
Investments at fair value through
profit or loss 10 118 227 118 227 –
Derivatives financial asset 11.1 – – –
Finance lease receivables 12 – – –
Deferred tax assets 13 86 478 86 478 –
Current assets 2 185 338 2 159 190 26 148 1%
Inventories 14 238 659 238 659 –
Loans to related party companies 8 282 848 282 848 –
Other loans receivable 9 8 375 8 375 –
Trade and other receivables 15 1 253 345 1 227 197 26 148 2%
Other financial assets 16 208 300 208 300 –
Finance lease receivables 12 3 131 3 131 –
Current tax receivable 1 023 1 023 –
Cash and cash equivalents 17 189 657 189 657 –
Total current assets 2 185 338 2 159 190 26 148 1%
Total assets 3 058 300 3 032 152 26 148 1%
Equity and liabilities –
Equity –
Stated capital 18 4 441 051 4 441 051 –
Reserves 19 (36 913) (36 913) –
Accumulated loss (2 250 465) (2 276 613) 26 148 -1%
Equity attributable to shareholders
of AYO 2 153 673 2 127 525 26 148 1%
Non-controlling interests 111 673 111 673 –
Total equity 2 265 346 2 239 198 26 148 1%
Liabilities –
Non-current liabilities 32 968 32 968 –
Derivatives financial liability 11.2 – – –
Lease liabilities 20 28 616 28 616 –
Employee benefit obligation 21 3 231 3 231 –
Other financial liabilities 1 121 1 121 –
Current liabilities 759 986 759 986 –
Trade and other payables 23 405 362 405 362 –
Other financial liabilities 8 189 8 189 –
Lease liabilities 20 22 856 22 856 –
Deferred income 22 19 995 19 995 –
Current tax payable 45 330 45 330 –
Provisions 24 218 318 218 318 –
Dividend payable 39 930 39 930 –
Bank overdraft 17 6 6 –
Total current liabilities 759 986 759 986 –
Total liabilities 792 954 792 954 –
Total equity and liabilities 3 058 300 3 032 152 26 148 1%
Consolidated statement of profit or loss and other
comprehensive income
for the year ended 31 August 2023
Reviewed
AFS Results
31 August 2023 31 August 2023
Notes R'000 R'000 Change
Revenue 26 2 253 494 2 253 494 –
Cost of sales 27 (1 902 233) (1 902 233) –
Gross profit 351 261 351 261 –
Other operating income 28 21 484 21 484 –
Other operating (losses)
gains/losses 29 (79 795) (55 574) (24 221) 44%
Other operating expenses 30 (865 808) (891 956) 26 148 -3%
Movement in expected credit losses (193 980) (193 980) –
Finance income 31 150 461 150 461 –
Finance costs (22 402) (22 402) –
Loss from equity-accounted
investments (12 541) (12 541) –
Loss before taxation (651 320) (653 247) 1 927 0,3%
Taxation 32 12 506 12 506 –
Loss after taxation (638 814) (640 741) 1 927 0,3%
–
Other comprehensive income: –
–
Items that will be subsequently
reclassified to profit or loss: –
Exchange differences on translating foreign
operations (3 006) (3 006) –
Income tax relating to items that will not be
reclassified. – –
Total items that will be subsequently
reclassified to profit or loss (3 006) (3 006) –
Other comprehensive (loss)/income for the
year net of tax (3 006) (3 006) –
Total comprehensive loss for the
year (641 820) (643 747) 1 927 0,3%
–
Loss after taxation attributable to: –
Shareholders of AYO (617 867) (619 794) 1 927 0,3%
Non-controlling interests (20 947) (20 947) –
Total loss after taxation (638 814) (640 741) 1 927 0,3%
–
Total comprehensive loss
attributable to: –
Shareholders of AYO (620 873) (620 873) –
Non-controlling interests (20 947) (20 947) –
Total comprehensive loss (641 820) (641 820) –
–
Earnings per share (cents) –
Loss per share (cents) 33 (179,97) (180,53) 0,56
Headline loss per share (cents) 33 (177,63) (176,46) 1,17
Changes to the Notes
Note 15 - Trade and other receivables
Reviewed
TRADE AND OTHER RECEIVABLES AFS Results
2023 2023
R'000 R'000 Change
Financial Instruments:
Trade receivables 424 780 424 780 -
Loss allowance (17 924) (17 924) -
Trade receivables at amortised cost 406 856 406 856 -
Deposits 18 570 18 570 -
Accrued income 389 389 -
Funds held in Trust 89 590 89 590 -
Related party receivables 68 797 68 797 -
Expected credit loss of related party
receivables (14 081) (14 081) -
Sundry customers 10 384 10 384 -
Non-financial instruments -
Value added taxation 32 783 6 635 26 148
Prepayments 29 677 29 677 -
Provision for impairment of prepayments (9 041) (9 041) -
*Other prepayments 619 423 619 423 -
Total 1 253 345 1 227 197
*Other prepayments are funds paid out to the PIC in relation to the AYO/PIC settlement agreement. Once
the settlement agreement conditions are met there will be an effect on the equity of the Company.
Note 29 - Other Operating Gains or Losses
Reviewed
OTHER OPERATING GAINS/(LOSSES)
AFS Results
2023 2023
R'000 R'000 Change
Fair value gains/(losses) on investments
designated as at fair value through profit or
loss 15 762 (5 193) 20 955 403% 1
Fair value loss on NCI written put option -
12 716 (12 716) 100% 1
Fair value gains/(losses) on call options
(114 478) (77 655) (36 823) 47% 2
Net foreign exchange gains/(losses)
(159) (1 300) 1 141 88% 3
Fair value (losses)/gains on contingent
considerations - 8 162 (8 162) 100% 1
Loss on sale of investments -
(11 122) 11 122 100% 4
Profit on sale of property, plant and
equipment 117 (144) 261 180% 5
Profit on sale of intangible assets -
- -
Profit on early termination of lease
7 154 7153 1
Fair value loss - initial recognition of loan -
- -
Fair value of BBBEE shares
11 809 11 809 - 6
(79 795) (55 574) 24 221
1) Due to the fact that the Reviewed Results were condensed, certain line items (namely Fair value
gains/(losses) on investments designated as at fair value through profit or loss , Fair value loss on
NCI written put option and Fair value (losses)/gains on contingent considerations) were classified
in fair values and subsequently, as advised by the auditors, were as is more appropriate
disaggregated in the AFS.
2) AYO corrected the accounting for the derecognition of the Option in the AFS by ensuring it passes
through equity and not the income statement, as was done in the Reviewed Results, to align to
ISA 32.23.
3) A portion of fair value gains or losses in the amount of R1.141 million was incorrectly allocated to
Net foreign exchange gains or losses in the Reviewed Results. This was subsequently corrected
in the AFS.
4) A fair value amount of R11.122 million was incorrectly classified to loss on sale of investments in
the Reviewed Results but corrected into the correct fair value account in the AFS.
5) A portion of fair value amount of R0.261 million was incorrectly allocated to profit on sale of plant
and equipment in the Reviewed Results. This was corrected in the AFS.
6) The BBBEE shares (fair value on IFRS 2) were not disclosed in the Reviewed Results due to a
printing error.
Note 30 - Other operating expenses
OTHER OPERATING EXPENSES
Reviewed
AFS Results
Major items included in other operating 2023 2023
expenses: R'000 R'000 Change
Employee costs 275 199 275 199 -
Depreciation and amortisation 50 967 50 967 -
Impairment expenses 9 952 9 952 -
Consulting fees 137 470 137 470 -
VAT apportionment 99 866 126 014 (26 148)
Retrenchment costs 27 316 27 316 -
Other operating expenses 265 038 265 038 -
865 808 891 957 (26 148)
The auditors performed an assessment of the possible VAT liability and came to a conclusion that an
adjustment of R26 million had to be made.
Note 33 – Earnings per share
Reviewed
EARNINGS PER SHARE AFS Results
2023 2023
R'000 R'000 Change
Earnings per share ("EPS") are derived by dividing the
earnings attributable to equity holders of AYO by the
weighted average number of ordinary shares.
Basic and diluted (loss)/earnings per share (cents) (179,97) (180,53) 0,56
There are no diluted options and other diluted potential
ordinary shares, therefore, basic and diluted
(loss)/earnings are the same.
The (losses)/earnings and weighted average number of
ordinary shares used in the calculation of basic and
diluted (losses)/earnings per share are as follows:
(Losses)/earnings attributable to shareholders of AYO (617 867) (619 794) 1 927
Weighted average number of shares (000) 343 314 343 314 -
Net asset value per share
Net asset value per share (cents) 659,85 652,23 7,62
Net of Reviewed
Gross of tax tax Results
Headline earnings per share
Headline loss/earnings is determined as follows:
(Loss)/earnings attributable to shareholders of AYO (617 867) (619 794) 1 927
Adjusted for:
Profit on sale of property, plant and equipment (117) (85) (117) -
Loss on disposal of subsidiary 11 122 8 119 11 122 -
Profit on sale of intangibles - -
Impairment of intangibles and property, plant and
-
equipment -
Tax effect of adjustments - - 2971 (2 971)
Headline earnings (609 833) (605 818) (4 015,35)
Weighted average number of shares (000) 343 314 343 314 -
Headline (loss)/earnings per share (cents) (177,63) (176,46) (1,17)
Please note the format in the AFS differs from the
format in the Reviewed Results.
Cape Town
4 April 2024
Joint Sponsor
Vunani Sponsors
Joint Sponsor
Merchantec Capital
Date: 04-04-2024 10:00:00
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