Preliminary Full Year Results – 30 June 2020

Enprise Group reports unaudited $1.3m profit, declares
dividend

AUCKLAND, 15 September, 2020. Hi-tech software and services investment company Enprise Group
(NZX: ENS) today reported unaudited revenue for the 15-month period to 30 June 2020 of $12.4
million, up from $6.76 million for the 12 months ended 31 March 2019. The Enprise Group board has
approved a 2c dividend with a dividend reinvestment plan.

Australian revenue was $6.09 million and New Zealand revenue was $6.31 million for the 15 months to
30 June 2020. The significant increase in Australian revenue reflects the timing of completion of the
Kilimanjaro Consulting acquisition. In the 12 months ended 31 March 2019 Australian revenue was $1.72
million and New Zealand revenue was $4.99 million. The board was very grateful to the New Zealand
and Australian governments for the assistance of $0.94 million across the group which enabled Enprise
to maintain the workforce.

Net tangible assets per ENS share was 15 cents per share. Total assets per share as at 30 June 2020
increased 50 cents per share to $1.47.

At 30 June 2020 cash at bank was $3.17 million (up from $0.77m as at 31 March 2019). Total
comprehensive income for the period was $1.62 million (vs $0.69m loss in FY19).

Following the qualified audit opinion on the financial statements for the year ended 31 March 2019,
Enprise Group undertook a review of the methodology and parameters used to support the previous
carrying values for its investments in Kilimanjaro Consulting Pty Ltd and iSell Pty Ltd. Advice was sought
from independent corporate finance advisors - no adjustment was necessary in relation to Kilimanjaro,
however an impairment charge of $0.440m was required for iSell which related to the 31 March 2019
period.

During the period Enprise completed its acquisition of Australia’s largest MYOB enterprise partner:
Kilimanjaro Consulting. Enprise Group now owns MYOB’s number one enterprise partners in both New
Zealand (Enprise Solutions) and Australia (Kilimanjaro Consulting).

Kilimanjaro Consulting and Enprise Solutions now operate as ‘One Company, Two Brands’. Achieving
business synergies between the two complementary companies helped Enprise to post a strong result.
Enprise Group is operating the Kilimanjaro brand in Australia and the Enprise brand in New Zealand
because the two brands are well known and well regarded in their home markets.

“These two core businesses are stable, growing and profitable. MYOB’s investment in Acumatica means
its new cloud product MYOB Advanced is powered by the world’s fastest-growing ERP system, adding
excitement to this part of the portfolio,” says Enprise Group CEO, Elliot Cooper.

“Enprise Group subsidiary iSell will complete a major new release in September 2020, introducing
Document Builder functionality that allows customers to customise their own forms and quotes,
including a digital signoff capability. The new release is helping iSell to remain ahead of its competitors,”
Elliot Cooper says.

“iSell’s development is customer-driven and the new functionality is eagerly awaited by its more than
300 customers across Australia, New Zealand, U.K and South Africa. We expect the new release to
sharpen iSell’s competitive edge and help it to seize market share,” he says.

During the period, Enprise Group’s joint venture with Datagate Innovation Ltd exceeded $1 million in
annual recurring revenue. Its goal is to more than double annual recurring revenue again this year.
Datagate is in high-growth mode and is keeping its focus on growing revenue and market share as
aggressively as possible. Market demand for Datagate has not slowed down since the Covid-19
outbreak, as its clients are busy supplying advanced unified communications systems and remote
working solutions to their customers.

Vadacom Holdings Ltd continued to grow with revenue up $0.5m (up 16.4%) year-on-year as COVID-19
work restrictions helped power demand for its tailored cloud PBX phone systems. As a result of an
independent valuation Enprise Group realised a $0.22m increase in the value of its Vadacom investment
in the period, to $0.81m.

“Growth prospects are strong as we continue to leverage remote working trends and new cloud
technologies,” Elliot Cooper says.


About Enprise Group
Listed on the New Zealand Stock Exchange (NZX), Enprise Group (ENS) is an investment vehicle for high-
growth tech companies that complement its core ERP capability. Enprise Group is invested in five
businesses – the wholly owned companies Enprise Solutions and Kilimanjaro Consulting, subsidiary iSell,
joint venture Datagate Innovation, and a holding in Vadacom.
Enprise Solutions is MYOB’s number one partner in New Zealand. Kilimanjaro Consulting is MYOB’s
number one partner in Australia. iSell is a primary provider of cloud business systems to the IT Reseller
market. Datagate Innovation provides SaaS Telecom Billing for MSPs in the U.S, U.K, Australia and New
Zealand. Vadacom specialises in cloud phone system software development and unified
communications solutions for Australian and New Zealand businesses.

Ends.

Released by Sayle Noble & Associates on behalf of Enprise Group. For more information please contact
Enprise Group CEO Elliot Cooper tel +649 829 5500 email elliotc@enprisegroup.com; or Caroline Sayle
tel +64 21 427 404 email caros@noble.co.nz

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Enprise Group Limited
Unaudited Results Announcement
for the 15 months ended 30 June 2020

Enprise Group Limited
Unaudited Results for Announcement to the Market
Reporting period
15 month to 30 June 2020
Previous reporting period
12 month to 31 March 2019
Amount (NZD'000)
Revenue from ordinary activities 12,400
85%increase
Gross profit 11,344
86%increase
Expenses from ordinary activities (10,763)
98%increase
Equity earnings from associates and joint ventures (276)
72%increase
Profit before tax 1,285
235%increase
Taxation expense 23
126%increase
Total comprehensive income attributable to shareholders 1,623
337%increase
Percentage change
Comments:

Enprise Group Limited
Unaudited Consolidated Statement of Comprehensive Income
for the 15 months ended 30 June 2020
30 June 202031 March 2019
Restated
15 mths $'00012 mths $'000
Continued operations
Revenue from contracts with customers12,4006,714
Cost of providing services(1,056)(600)
Gross profit
11,3446,114
Other operating income2012
Government assistance935-
Employee expense(8,335)(4,080)
Other operating costs(2,428)(1,343)
Other gains/(losses) - net58(40)
Operating profit from continued operations
1,594663
Equity earnings from associates and joint ventures(276)(1,001)
Write down of carrying value of joint ventures- (563)
Finance cost - net(33)(52)
Profit/(loss) before income tax from continuing operations
1,285(953)
Income tax benefit/(expense)23(88)
Profit/(loss) for the period1,308(1,041)
Other Comprehensive Income
Items that may be reclassified to profit or loss
Foreign currency translation differences9510
Items that will not be reclassified to profit or loss
Changes in the fair value of investments through other comprehensive income220345
Total other comprehensive income for the period, net of tax315355
Total comprehensive income for the period
1,623(686)
Profit for the year is attributable to:
Non-Controlling Interest24-
Owners of Enprise Group Limited
1,284(1,041)
1,308(1,041)
Total comprehensive income for the year is attributable to
Non-Controlling Interest24-
Owners of Enprise Group Limited
1,599(686)
1,623(686)
Earnings per share (cents per share)
Basic and diluted earnings per share
10.06 (7.16)
3

Enprise Group Limited
Unaudited Consolidated Statement of Financial Position
as at 30 June 2020
30 June 202031 March 2019
Restated
$'000$'000
Current assets
Cash & cash equivalents
3,169
771
Trade and other receivables
2,962
1,324
Contract assets
646
296
Current tax assets
-
1
Staff receivables
13
54
Loans to related parties
-
193
Other current assets
244
-
Total current assets
7,0342,639
Non-current assets
Investments in associates, joint ventures
628
3,440
Investments in other entities
813
593
Staff receivables - non current
-
33
Property plant and equipment
284
83
Intangible assets
11,224
1,695
Right of use assets - non-current
1,710
-
Deferred tax asset
1,749
352
Loans to related parties
-
476
Total non-current assets
16,4086,672
Total assets
23,4429,311
Current liabilities
Trade and other payables
2,752
1,010
Provisions
1,501
233
Contract liabilities
1,989
705
Borrowings
347
635
Lease liabilities
654
-
Other current liabilities
-
15
Total current liabilities
7,2432,598
Non-current liabilities
Borrowings - non current
138
-
Lease liabilities - non-current
1,089
-
Deferred tax liability
680
79
Other non-current liabilities
-
4
Total non-current liabilities
1,90783
Total liabilities
9,1502,681
Net assets
14,2926,630
Equity
Share capital
10,7496,566
Foreign exchange translation reserve
16065
Financial assets at FVOCI reserve
565345
Retained earnings
861(346)
Equity attributable to the owners of Enprise Group Limited12,3356,630
Non-controlling interest
1,957-
Total equity
14,2926,630
Total assets per share ($ per share)
1.47 0.97
Net tangible assets per share ($ per share)0.15 0.16
4

Enprise Group Limited
Unaudited Consolidated Statement of Changes in Equity
for the 15 months ended 30 June 2020
Share capital
Foreign
exchange
translation
reserve
Financial assets
at FVOCI reserve
Retained
earnings
Non-Controlling
Interest
Total equity
$'000$'000$'000$'000$'000$'000
Balance at 1 April 2018
6,566 55 - 790 7,411
Transactions with shareholders in their capacity as owners
Dividends paid
(95) (95)
Total transactions with shareholders
- - - (95) - (95)
Comprehensive income
Loss for the period (as restated)(1,041) (1,041)
Other comprehensive income
10 345 355
Total comprehensive income net of tax (as restated)10 345 (1,041) - (686)
Balance at 31 March 2019
6,566 65 345 (346) - 6,630
Change in accounting policy
(77) - (77)
Balance at 1 April 2019
6,566 65 345 (423) - 6,553
Transactions with shareholders in their capacity as owners
New shares issued4,183 4,183
Non-controlling interest on acquisition- - - - 1,933 1,933
Total transactions with shareholders
4,183 - - - 1,933 6,116
Comprehensive income
Profit for the period- - - 1,284 24 1,308
Other comprehensive income
- 95 220 - - 315
Total comprehensive income net of tax
- 95 220 1,284 24 1,623
Balance at 30 June 2020
10,749 160 565 861 1,957 14,292
5

Enprise Group Limited
Unaudited Consolidated Statement of Cash Flow
for the 15 months ended 30 June 2020
30 June 202031 March 2019
15 mths $'00012 mths $'000
Operating activities
Cash was provided from:
Receipts from customers
19,962
10,354
Government Assistance
753
-
Interest received
19
8
Income tax refund received
1
4
20,73510,366
Cash was applied to:
Payments to suppliers & employees
18,018 9,969
Interest paid
62 56
18,08010,025
Net cash inflow (outflow) from operating activities2,655 341
Investing activities
Cash was provided from:
Loans repaid by staff
74
51
Repayments from related parties
104
-
Cash acquired on conversion of JV's and associates to subsidiaries491 -
669 51
Cash was applied to:
Purchase of property, plant and equipment
95
30
Investment in equity accounted joint venture
176
100
Investment in equity accounted associate
42
232
Investments in other entities
-
24
Purchase of business
21
-
Lending to third parties30 -
Advances to related parties
876
97
1,240483
Net cash inflow (outflow) from investing activities(571) (432)
Financing activities
Cash was provided from:
Proceeds from issue of shares1,136 -
1,136 -
Cash was applied to:
Dividends paid- 95
Repayment of lease liabilities409 -
Repayment of borrowings415 314
824 409
Net cash inflow (outflow) from financing activities312 (409)
Net increase / (decrease) in cash and cash equivalents held2,396 (500)
Net foreign exchange differences2 6
Cash and cash equivalents at beginning of the year771 1,265
Cash and cash equivalents at end of the year3,169 771
6

Enprise Group Limited
Unaudited Consolidated Statement of Cash Flow
for the 15 months ended 30 June 2020
Cashflow Reconciliation
Reconciliation of net profit to net cash flows from operations:30 June 202031 March 2019
15 mths $'00012 mths $'000
Profit/(loss) for the period
1,308 (1,041)
Adjustments for:
Depreciation and amortisation
722 115
Net loss/(gain) on foreign exchange(58) 40
Release of fit out loan(19) (15)
Impairment loss on trade receivables24 (33)
Share of loss from equity accounted investments276 1,001
Write down of carrying value of joint ventures- 563
Loan issued in exchange for services(50) (572)
Movements in working capital
(Increase)/decrease in trade and other receivable
(1,638) 22
(Increase)/decrease in contract assets
(350) 21
(Increase)/decrease in income taxes receivable1 (1)
Increase/(decrease) in trade and other payables1,742 130
Increase/(decrease) in provisions1,268 41
Increase/(decrease) in contract liabilities1,284 (18)
(Increase)/decrease in deferred tax asset(796) 88
Net working capital assumed on acquisition(1,059) -
Net cash inflow from operating activities2,655341
7

Enprise Group Limited
Segmental Information
for the 15 months ended 30 June 2020
Operating segments
1.Operating Performance
a.Geographic Segments
Revenue
Operating Profit
2020201920202019
Restated
15 mths $'00012 mths $'00015 mths $'00012 mths $'000
New Zealand6,313 4,994 703 474
Australia6,087 1,720 891 189
12,400 6,714 1,594 663
Equity earnings of associates and joint ventures(276) (1,001)
Write down of carrying value of joint ventures- (563)
Net interest expense(33) (52)
Profit/(loss) before taxation1,285 (953)
Income Tax23 (88)
Net profit/(loss) attributable to shareholders1,308 (1,041)
b.Business Segments
Revenue
Operating Profit
2020201920202019
15 mths $'00012 mths $'00015 mths $'00012 mths $'000
Enterprise Solutions12,250 6,714 2,620 1,316
ITQuoter150 - 49 -
Corporate- - (1,075) (653)
12,400 6,714 1,594 663
2Interest, Deprecation and Amortisation
Interest Revenue
Interest Expense
202020192020201920202019
15 mths $'00012 mths $'00015 mths $'00012 mths $'00015 mths $'00012 mths $'000
New Zealand72 7 63 60 267 115
Australia1 1 43 - 455 -
73 8 106 60 722 115
3Balance Sheet Information
Total Assets
Total Liabilities
2020201920202019
$'000$'000$'000$'000
New Zealand8,117 6,107 2,930 1,990
Australia17,233 3,973 8,128 1,460
25,350 10,080 11,058 3,450
Inter-segment elimination(1,908) (769) (1,908) (769)
23,442 9,311 9,150 2,681
The Group has two operating segments based on geographical locations and two business segments. 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
8

Enprise Group Limited
Changes in Accounting Policies
for the 15 months ended 30 June 2020
Change in accounting policies
NZ IFRS 16 - Leases
Recognition and measurement
- The ROU would be subsequently measured through depreciating the asset based on NZ IAS 16: 'Property, plant and equipment'.
Summary of adjustments to opening retained earnings
$'000
Balance as at 1 April 2019(346)
Change in recognition of:
Equity earnings from associates and joint ventures(49)
Right of use asset118
Lease liability(157)
Deferred tax asset44
Deferred tax asset(33)
(77)
Adjusted balance at 1 April 2019(423)
Restatement of Comparatives
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:
This standard replaces the former guidance in NZ IAS 17. Under NZ IFRS 16, a contract is, or contains, a lease if the contract conveys the right to
control the use of an identified asset for a period of time in exchange for consideration. Under NZ IAS 17, a lessee was required to make a
distinction between a finance lease (on balance sheet) and an operating lease (off balance sheet). NZ IFRS 16 now requires a lessee to recognise
a lease liability reflecting future lease payments and a 'right-of-use asset' for virtually all lease contracts. The profit and loss will also be impacted by
the recognition of an interest expense and a depreciation expense and the removal of the current rental expense.
This standard will affect primarily the accounting for the Group's operating leases. Applying the new standard will impact our net profit. Rental and
lease expenses are effectively reclassified into a deprecation component and an interest component to reflect the implied financing in the lease.
In preparing the 2020 results, Enprise Group have undertaken a review of the methodology and parameters used to support the previous carrying
values for its investments in Kilimanjaro Consulting Pty Limited and iSell Pty Limited. Advice was sort from independent corporate finance advisors,
and as a result no adjustment was necessary in relation to Kilimanjaro, however an impairment charge of $440,285 was required for iSell which
related to the prior period. The comparative information has been restated as result of this prior period adjustment.
- Initially the right-of-use (ROU) asset would be measured at its carrying amount as if NZ IFRS 16 had been applied since the commencement of
the lease, but discounted using the Group's borrowing rate.
- The lease liability will be reduced when payments are made and interest taken up based on the effective interest method, using a discount rate
determined at lease commencement.
The Group has elected to adopt the cumulative effect approach under which the Group will not restate comparative information.
- Recognition of a lease liability which would reflect the initial measurement of the present value of lease payments, including reasonably certain
renewals.
9