Unaudited Financial Results Period Ended 31 March 2019

Enprise Group Limited
Unaudited Results for Announcement to the Market
Reporting period 12 month to 31 March 2019
Previous reporting period 12 month to 31 March 2018
Amount (NZD'000)
Revenue from ordinary activities 6,751 -23%decrease
Gross profit 6,151 13%increase
Expenses from ordinary activities (6,124)-25%decrease
Equity earnings from associates and joint ventures (1,104)94%increase
Profit before tax (465)-501%decrease
Taxation expense 36 3%increase
Total comprehensive income attributable to shareholders (429)-384%decrease
Percentage change
Comments:
The reduction in revenue and expenses is due to the change in accounting policies as a result of application of IFRS15 for the 2019 financial
year. Licence income must now be treated as agency income. Please refer to the note for more information.

Enprise Group Limited
Consolidated Statement of Comprehensive Income
for the year ended 31 March 2019
20192018
$'000$'000
Continued operations
Sales6,7518,809
Cost of providing services(600)(3,356)
Gross profit6,1515,453
Other operating income1232
Selling and marketing expenses(105)(72)
Employee expense(4,019)(3,361)
Depreciation and amortisation expense(115)(115)
Other operating costs(1,196)(1,166)
Other gains/(losses) - net(37)(6)
Operating profit from continued operations691765
Equity earnings from associates and joint ventures(1,104)(570)
Earnings before interest and tax from continuing operations(413)195
Finance cost - net(52)(79)
Profit/(loss) before income tax from continuing operations(465)116
Income tax benefit/(expense)3635
Profit/(loss) for the period(429)151
Total other comprehensive income for the period, net of tax
Foreign currency translation differences613
Total comprehensive income for the period
(423)164
Total comprehensive income for the period is attributable to:
Shareholders of the parent
(423)164
Earnings per share (cents per share)
Basic and diluted earnings per share
(4.4) 1.7
1

Enprise Group Limited
Consolidated Statement of Changes in Equity
for the year ended 31 March 2019
Share Capital
Foreign
Exchange
Translation
Reserve
Retained
Earnings
Total Equity
$'000$'000$'000$'000
Balance at 1 April 20172,936421,2424,220
Transactions with shareholders in their capacity as owners
New shares issued3,6303,630
Dividends paid(339)(339)
Total transactions with shareholders3,630- (339)3,291
Comprehensive income
Profit for the period151151
Other comprehensive income
1313
Total comprehensive income net of tax- 13151164
Balance at 31 March 20186,566551,0547,675
Change in accounting policy(192)(192)
Balance at 1 April 20186,566558627,483
Transactions with shareholders in their capacity as owners
New shares issued- -
Dividends paid(95)(95)
Total transactions with shareholders- - (95)(95)
Comprehensive income
Profit for the period(429)(429)
Other comprehensive income
66
Total comprehensive income net of tax- 6(429)(423)
Balance at 31 March 20196,566613386,965
2

Enprise Group Limited
Consolidated Statement of Financial Position
as at 31 March 2019
20192018
$'000$'000
Current Assets
Cash & cash equivalents
7711,265
Trade and other receivables
1,2151,016
Related party receivables
147330
Work in progress
276-
Current tax assets
1-
Staff receivables
5451
Loans to related parties
193-
Other current assets
- 3
Total Current Assets
2,6572,665
Non-Current Assets
Investment in equity accounted joint venture2,9683,958
Investment in equity accounted associate1,052738
Investments
248321
Staff receivables
3385
Property plant and equipment
83103
Intangible assets1,6941,760
Deferred tax asset
358341
Loans to related parties
476-
Total Non-Current Assets
6,9127,306
Total Assets
9,5699,971
Current Liabilities
Trade and other payables
1,6971,083
Provisions
234192
Borrowings
337314
Other current liabilities
1515
Total Current Liabilities
2,2831,604
Non-Current Liabilities
Borrowings
298635
Deferred tax liability
1938
Other non-current liabilities
419
Total Non-Current Liabilities
321692
Total Liabilities
2,6042,296
Net Assets
6,9657,675
Equity
Share capital
6,5666,566
Other reserves
6155
Retained Earnings
3381,054
Total Equity
6,9657,675
Total assets per share ($ per share)
1.00 1.04
3

Enprise Group Limited
Consolidated Statement of Cash Flow
as at 31 March 2019
20192018
$'000$'000
Operating Activities
Cash was provided from:
Receipts from customers
8,981
9,930
Interest received
8
11
Income tax refund received
4
-
8,9939,941
Cash was applied to:
Payments to suppliers & employees
8,595 9,336
Interest paid
56 33
8,6519,369
Net cash inflow (outflow) from operating activities342 572
Investing Activities
Cash was provided from:
Loans repaid by staff
51
19
Proceeds from term deposit
-
154
51 173
Cash was applied to:
Purchase of property, plant and equipment
30
65
Investment in equity accounted joint venture
100
1,000
Investment in equity accounted associate
232
739
Other Investments
24
-
Advances to related parties
97
-
4831,804
Net cash inflow (outflow) from investing activities(432) (1,631)
Financing Activities
Cash was provided from:
Proceeds from issue of shares- 1,023
Proceeds from borrowings- 1,054
- 2,077
Cash was applied to:
Dividends paid95 294
Repayment of borrowings312 51
407 345
Net cash inflow (outflow) from financing activities(407) 1,732
Net increase / (decrease) in Cash and Cash Equivalents held(497) 673
Net foreign exchange differences3 (6)
Cash & Cash Equivalents at beginning of the year1,265 598
Cash & Cash Equivalents at end of the year771 1,265
4

Enprise Group Limited
Consolidated Statement of Cash Flow
as at 31 March 2019
Cashflow Reconciliation
20192018
$'000$'000
Profit/(Loss) for the period(429)151
Adjustments for:
Depreciation and amortisation115115
Net loss/(gain) on foreign exchange
306
Release of fit out loan
(15)(15)
Impairment loss on trade receivables
(10)45
Share of loss from equity accounted investments
1,104570
Share based payment
- 30
Share issue in exchange for services
- (97)
Loan issued to related party in exchange for services
(588)-
Changes in accounting policy
(192)-
Movements in Working Capital
(Increase)/decrease in trade and other receivable(16)(159)
(Increase)/decrease in work in progress(276)-
(Increase)/decrease in income taxes receivable
(1)-
Increase/(decrease) in trade and other payables
614(38)
42(1)
(Increase)/decrease in deferred tax asset
(36)(35)
Net cash inflow from operating activities342572
Increase/(decrease) in employee benefit obligations
5

Enprise Group Limited
Segmental Information
for the year ended 31 March 2019
1.Operational Performance - Geographic Segments
Revenue
Operating Profit
2019201820192018
$'000$'000$'000$'000
New Zealand5,031 6,930 490 619
Australia1,732 1,911 201 146
6,763 8,841 691 765
Equity earnings of associates and joint ventures(1,104) (570)
Net interest expense(52) (79)
Profit/(loss) before taxation(465) 116
Income Tax36 35
Net profit/(loss) attributable to shareholders(429) 151
Operating segments
2.Interest, Deprecation and Amortisation
Interest Revenue
Interest Expense
201920182019201820192018
$'000$'000$'000$'000$'000$'000
New Zealand71060 86115 115
Australia11- 4- -
8 11 60 90 115 115
3.Balance Sheet Information
Total Assets
Total Liabilities
2019201820192018
$'000$'000$'000$'000
New Zealand5,750 6,732 1,909 1,891
Australia4,568 3,983 1,445 1,149
10,318 10,715 3,354 3,040
Inter-segment elimination(769) (744) (769) (744)
Profit/(loss) before taxation9,549 9,971 2,585 2,296
The Group has two operating segments based on geographical locations. These segments form the basis of internal reporting used by
management and the Board of Directors to monitor and assess performance and assist with strategic decisions.
Depreciation and
Amortisation expense
6

Enprise Group Limited
Changes in Accounting Policies
for the year ended 31 March 2019
Change in accounting policies
NZ IFRS 9 - Financial Instruments; and
NZ IFRS 15 - Revenue from contracts with customers
(a)NZ IFRS 9 - Financial Instruments
(b)NZ IFRS 15 - Revenue from contracts with customers
Software and Licences - agency commissions
The Group has chosen not to restate comparative information and any adjustments required by the application of the new standard
is to be made to the opening balance of retained earnings recognised in the statement of changes in equity for the year ended 31
March 2019.
The following new or amended standards became applicable for the current reporting period and the Group had to change its accounting
policies and make adjustments to opening retained earnings as a result of adopting the following standards:
The impact of the adoption of these standards and the new accounting policies are disclosed below.
NZ IFRS 15 does not allow for amounts collected on behalf of others to be included as revenue. This change in accounting policy
has materially changed how revenue is being recorded by the Group. The Group must show only the agency commission and this
has impacted the revenue and cost recorded in the statement of comprehensive income, especially when comparing with the prior
year.
NZ IFRS 15, revenue from contracts with customers, introduces a five step process for revenue recognition with the core principle
being for entitles to recognise revenue to depict the transfer of goods or services to customers in amounts that reflect the
consideration (that is, payment) to which the entity expects to be entitled in exchange for those goods or services.
The standard requires entities to exercise judgement, taking into consideration all of the relevant facts and circumstances when
applying each step of the model to contracts with their customers. The standard also specifies the accounting for the incremental
costs of obtaining a contract and the costs directly related to fulfilling the contract.
The group elected to apply the retrospective cumulative effect method, with no restatement of comparative period amounts. The
cumulative effect of applying the new standard is included as an adjustment to the opening balance of retained earnings
recognised in the statement of changes in equity for the year ended 31 March 2019.
The group's revenue recognition policies for major line items have been changed as follows:
NZ IFRS 9, Financial Instruments addresses the classification, measurement and recognition of financial assets and financial
liabilities. It replaces the guidance in NZIAS 39, Financial Instruments: Recognition and Measurement, that relates to the
classification and measurement of financial instruments
The Group's classification measure of financial assets and liabilities under NZIFRS9 remains largely the same as it was under
NZIAS 39.
There has been no material impact of NZIFRS9 in relation to non investment assets recorded in the draft accounts for the Group.
Any impact as a result of impairment to investments have not yet been assessed at this time.
The adoption of IFRS15 and the application of the five step process has also impacted on the timing of when the agency
commission can be recognised. The Group has concluded that the recognition of agency commission occurs once payment has
been received. The impact of this adjustment is $118,000 to opening retained earnings.
7

Enprise Group Limited
Changes in Accounting Policies
for the year ended 31 March 2019
Income from Services
Summary of NZ IFRS9 and NZ IFRS15 adjustments to opening retained Earnings
Balance as at 1 April 20181,054
NZ IFRS15 adjustments
Change in recognition of agency commissions(118)
Change in recognition of services income(128)
Change in recognition of services costs54
Adjusted balance at 1 April 2018862
The Group has concluded that income from services, such as certain aspects of consulting income, should be recognised when
there is a reasonable expectation from both parties that a project has been completed and in a usable state. The adoption of NZ
IFRS 15 has impacted on the timing of the income and the related costs resulting in a net adjustment of $74,000 to opening
retained earnings.
8

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Enprise Group Limited
Unaudited preliminary financial results
For the period ended 31 March 2019

2019 2018 Change
$000’s $000’s %

Revenue 6,751 8,809 (23.4)
Gross Profit 6,151 5,453 12.8
Profit from operations before income tax 691 765 (9.7)
Share of losses from Datagate (585) (431) (35.4)
Share of losses from Kilimanjaro Consulting (712) (291) (144.7)
Share of losses from iSell (15) (1) -
Gain on dilution from Datagate 208 155 34.2
Net Profit after tax (429) 151 -

Earnings per share (Cents) (4.4) 1.7
Dividends paid per share (Cents) 1.0 4.5
Review of Operations and Outlook
The decrease in Revenue is due to the change in accounting policy as a result of the
adoption of IFRS 15 for the 2019 reporting period. The impact is significant on the reported
Revenue and has a $192,000 negative impact on the retained earnings brought forward from
2018. The Gross Profit and Profit from operations for the 2019 period is not materially
affected as shown by an increase of $698,000.
Enprise is leveraging its position as the only MYOB EXO and MYOB Advanced reseller with
offices in both New Zealand and Australia, to target trans-Tasman businesses. Enprise is
well positioned to take advantage of the trend towards cloud while still having a stable, well
supported, secure and continually developed on-premises offering. Enprise became a
MYOB Advanced Platinum Partner in January 2019. Enprise now has Platinum Partner
status with MYOB for both MYOB Exo and MYOB Advanced.
The company paid a final dividend (declared in 2018) during the year of 1.0 cent per share in
October 2018. The total dividend for the year was $95,351.
Datagate had forty five paying customers at 31 March 2019 representing annualised
recurring revenue of $469,596, a 36% increase from 31 March 2018. In April 2019, Datagate
has recently completed the migration of all customers onto their latest version of the

software. The Datagate rights issue in November 2018 was over-subscribed. The total cash
raised by Datagate was $750,000. Enprise subscribed to 57,142 shares ($100,000) and
consequently Enprise’ stake in Datagate reduced to 36.05%. If Enprise’ 1,765,475 shares in
Datagate were valued at the rights issue price of $1.75 per share, the value of Enprise’
Datagate investment would be $3,089,581. The actual carrying value of Datagate is
$803,336 after a charge for the year of $585,289. The difference between the carrying value
and the value at the last investment round is $2,286,245.
Enprise obtained a 47.09% share of Kilimanjaro in September 2017. Kilimanjaro is the
largest reseller of MYOB Exo and Advanced in Australia. This was a strategic addition to the
portfolio to gain synergies due to the similarities in the business models and to expand
Enprise’ reach in Australia. To date synergies have already been gained by merging the
Finance functions and Kilimanjaro utilising the cloud infrastructure resources that Enprise
already possesses. Future synergies are in progress for the consulting and sales divisions of
the business. The initial value of the investment was $3,168,400. The carrying value of
Kilimanjaro at year end was $2,159,024 after a charge for the year of $712,315. The charge
of $712,315 includes our share of the Goodwill write off of $315,788. Like Enprise
Kilimanjaro has had an impact on its’ performance with the adoption of IFRS15 in the
reporting period. At the time of purchase the Company also granted a put option for the
remaining 52.71% for $3,967,964 (2,854,650 ENS shares). The option can be exercised
between 1 September 2019 and 30 August 2020.
In December 2018 Enprise participated in a rights issue for iSell, which sells a cloud-based
quoting system used by the IT reseller market in Australia, New Zealand, South Africa and
the UK. iSell shares the same Managed Service Provider market as Datagate and the two
entities could gain synergies in their sales and marketing functions. The value of the
investment via the rights issue was $231,419. The total carrying value of the investment in
iSell at 31 March 2019 is $1,047,424. Enprise has increased its’ share in iSell to 19.88%
In November 2018 Vadacom, a cloud based VOIP phone and virtual PABX provider raised
$500,000 from external investors at $8.20 per share. If Enprise’ 57,047 shares in Vadacom
were valued at the issue price of $8.20 per share, the value of Enprise’ Vadacom investment
would be $467,785.