Preliminary Full Year Results – 30 June 2021

Enprise Group Limited
Unaudited Results Announcement
for the year ended 30 June 2021

Enprise Group Limited
Unaudited Consolidated Statement of Comprehensive Income
for the year ended 30 June 2021
30 June 202130 June 2020
12 mths $'00015 mths $'000
Continued operations
Revenue from contracts with customers16,11312,420
Government assistance753935
Employee expense(11,806)(8,335)
Other operating costs(4,385)(3,499)
Other gains/(losses) - net- 60
Operating profit from continued operations
6751,581
Equity earnings/(losses) from associates and joint ventures(474)(618)
Other gains/(losses) related to associates and joint ventures344257
Net gain on previously held interest in associates and joint ventures- 85
Finance cost - net(174)(39)
Profit/(loss) before income tax from continuing operations
3711,266
Income tax benefit/(expense)39993
Profit/(loss) for the period7701,359
Other Comprehensive Income
Items that may be reclassified to profit or loss
Foreign currency translation differences3893
Items that will not be reclassified to profit or loss
Changes in the fair value of investments through other comprehensive income23220
Total other comprehensive income for the period, net of tax61313
Total comprehensive income for the period
8311,672
Profit for the year is attributable to:
Non-Controlling Interest(326)23
Owners of Enprise Group Limited
1,0961,336
7701,359
Total comprehensive income for the year is attributable to
Non-Controlling Interest(326)23
Owners of Enprise Group Limited
1,1571,649
8311,672
Earnings per share (cents per share)
Basic and diluted earnings per share6.84 11.67
2

Enprise Group Limited
Unaudited Consolidated Statement of Financial Position
as at 30 June 2021
30 June 202130 June 2020
$'000$'000
Current assets
Cash and cash equivalents
2,806
3,169
Trade and other receivables
2,821
2,953
Contract assets
713
646
Current tax assets
1
-
Staff receivables
-
13
Total current assets
6,3416,781
Non-current assets
Investments in associates, joint ventures
833
628
Investments in other entities
687
813
Staff receivables - non current
106
90
Property plant and equipment
384
284
Intangible assets
10,810
10,960
Right-of-use assets - non-current
1,568
1,851
Deferred tax asset
1,958
1,746
Loans to related parties - non current
87
-
Other non-current assets
54
154
Total non-current assets
16,48716,526
Total assets
22,82823,307
Current liabilities
Trade and other payables
2,554
2,787
Provisions
1,525
1,232
Contract liabilities
2,362
1,989
Borrowings
50
347
Lease liabilities
360
704
Total current liabilities
6,8517,059
Non-current liabilities
Provisions - non-current
181
269
Borrowings - non current
-
138
Lease liabilities - non-current
1,300
1,179
Deferred tax liability
705
893
Total non-current liabilities
2,1862,479
Total liabilities
9,0379,538
Net assets
13,79113,769
Equity
Share capital
11,01010,749
Foreign exchange translation reserve
196158
Financial assets at FVOCI reserve
588565
Retained earnings
1,442912
Equity attributable to the owners of Enprise Group Limited13,23612,384
Non-controlling interest
5551,385
Total equity
13,79113,769
Total assets per share ($ per share)
1.41 1.47
Net tangible assets per share ($ per share)0.13 0.14
3

Enprise Group Limited
Unaudited Consolidated Statement of Changes in Equity
for the year ended 30 June 2021
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 2019
6,566 65 345 (424) - 6,552
Transactions with shareholders in their capacity as owners
New shares issued
4,183 - - - - 4,183
Non-controlling interest on acquisition
- - - - 870 870
New share issue in iSell Pty Limited
- - - - 492 492
Total transactions with shareholders
4,183 - - - 1,362 5,545
Comprehensive income
Profit for the period
- - - 1,336 23 1,359
Other comprehensive income
- 93 220 - 313
Total comprehensive income net of tax
93 220 1,336 23 1,672
Balance at 30 June 2020
10,749 158 565 912 1,385 13,769
Balance at 1 July 2020
10,749 158 565 912 1,385 13,769
Transactions with shareholders in their capacity as owners
Dividends paid
- - - (639) - (639)
New shares issued under dividend
reinvestment plan
261 - - - - 261
Transactions with non-controlling
interests
- - - 73 (504) (431)
Total transactions with shareholders
261 - - (566) (504) (809)
Comprehensive income
Profit for the period
- - - 1,096 (326) 770
Other comprehensive income
- 38 23 - - 61
Total comprehensive income net of tax
- 38 23 1,096 (326) 831
Balance at 30 June 2021
11,010 196 588 1,442 555 13,791
4

Enprise Group Limited
Unaudited Consolidated Statement of Cash Flow
for the year ended 30 June 2021
30 June 202130 June 2020
12 mths $'00015 mths $'000
Operating activities
Cash was provided from:
Receipts from customers
23,855 19,962
Government Assistance
935 753
Interest received
2 19
Income tax refund received
- 1
24,79220,735
Cash was applied to:
Payments to suppliers & employees
22,445 18,012
Interest paid
26 62
22,47118,074
Net cash inflow (outflow) from operating activities2,321 2,661
Investing activities
Cash was provided from:
Loans repaid by staff13 74
Repayments from associates and joint ventures- 104
Term deposits reclassified100 -
Share buy back from other entities62 -
Business acquisitions- 23
175 201
Cash was applied to:
Purchase of property, plant and equipment190 95
Purchase of software272 -
Investment in equity accounted joint venture335 176
Investment in equity accounted associate- 42
Purchase of business18 20
Lending to third parties5 30
Advances to related parties
- 876
8201,239
Net cash inflow (outflow) from investing activities(645) (1,038)
Financing activities
Cash was provided from:
Proceeds from issue of shares- 1,136
Proceeds from issue of shares in iSell Pty Limited to non-controlling interests146 466
146 1,602
Cash was applied to:
Dividends paid378 -
Purchase of shares in iSell Pty Limited from non-controlling interests576 -
Repayment of lease liabilities762 415
Repayment of borrowings441 350
Repayment of other borrowings2 65
2,159 830
Net cash inflow (outflow) from financing activities(2,013) 772
Net increase / (decrease) in cash and cash equivalents held(337) 2,395
Net foreign exchange differences(26) 3
Cash and cash equivalents at beginning of the year3,169 771
Cash and cash equivalents at end of the year2,806 3,169
5

Enprise Group Limited
Unaudited Consolidated Statement of Cash Flow
for the year ended 30 June 2021
Cashflow Reconciliation
Reconciliation of net profit to net cash flows from operations:30 June 202130 June 2020
12 mths $'00015 mths $'000
Profit/(loss) for the period
770 1,359
Adjustments for:
Depreciation on property plant and equipment143 108
Depreciation on right-of-use assets681 413
Amortisation on intangible assets476 184
Net loss/(gain) on foreign exchange(6) (60)
Release of fit out loan- (19)
Impairment loss on trade receivables118 24
Share of loss from equity accounted investments130 276
Loan issued in exchange for services- (285)
Movements in working capital
(Increase)/decrease in trade and other receivable
132 (1,629)
(Increase)/decrease in contract assets
(67) (350)
(Increase)/decrease in income taxes receivable(1) 1
Increase/(decrease) in trade and other payables(233) 1,777
Increase/(decrease) in provisions205 1,268
Increase/(decrease) in contract liabilities373 1,284
(Increase)/decrease in deferred tax asset(212) (1,394)
Increase/(decrease) in deferred tax liabilities(188) 814
Net working capital assumed on acquisition- (1,110)
Net cash inflow from operating activities2,3212,661
6

Enprise Group Limited
Notes to Accompany the Unaudited Results Announcement
for the year ended 30 June 2021
1CHANGES IN ACCOUNTING POLICIES
(a)Changes in accounting policies
(b)Critical accounting judgements and estimates
2SEGMENT INFORMATION - OPERATIONAL PERFORMANCE
(a)Operational performance - Business Segments
Revenue
Operating profit
30 June 202130 June 202030 June 202130 June 2020
12 mths $'00015 mths $'00012 mths $'00015 mths $'000
Enterprise Division15,239 12,251 2,405 2,607
iSell865 169 (958) 49
Corporate9 - (772) (1,075)
- -
16,113 12,420 675 1,581
Equity earnings of associates and joint ventures(130) (276)
Net interest expense(174) (39)
- -
Profit/(loss) before taxation371 1,266
- -
Income Tax399 93
- -
Net profit/(loss) attributable to shareholders770 1,359
(b)Operational performance - Geographical Segments
Revenue
Operating profit
30 June 202130 June 202030 June 202130 June 2020
12 mths $'00015 mths $'00012 mths $'00015 mths $'000
New Zealand4,517 6,324 438 826
Australia11,387 6,093 402 752
EMEA*107 2 (156) 2
North America4 1 (9) 1
Asia98 - - -
- -
16,113 12,420 675 1,581
-
* Europe, Middle East and Africa
- -
There have been no changes in accounting policies, all policies have been applied consistently over the current year. Please refer to the accounting policies
contained within the audited financial statements for the year ended 30 June 2020.
The Group is organised into two reportable operating segments based on the 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. The Board of Directors is the Group's chief operating
decision maker (CODM). Management has determined the operating segments based on the information reviewed by the Board of Directors and the Chief Executive
Officer for the purposes of allocating resources and assessing performance.
In the process of applying the Group's accounting policies and the application of accounting standards, a number of estimates and judgements have been made. The
estimates and underlying assumptions are based on historical experience and adjusted for current market conditions and other factors, including expectations of
future events that are considered to be reasonable under the circumstances. The most significant of these of relevance to the reported results for the 2021 year
include:
Impairment testing - goodwill and other intangible assets The group's intangible assets have been assessed by management and allocated to the cash-
generating units (CGU). The assessment of each CGU has not currently resulted in any impairment on intangible assets.
Deferred tax The Group has recognised a deferred tax asset on its statement of financial position as at the reporting date. Significant judgement is required in
determining if the utilisation of deferred tax assets is probable. The recognition of deferred tax assets is based upon whether it is more likely than not that sufficient
and suitable taxable profits will be available in the future against which the reversal of temporary differences can be deducted. To determine the future taxable
profits, reference is made to the latest forecasts of future earnings of the Group and relevant tax law is considered to determine the availability of the losses to
offset against the future taxable profits.
7

Enprise Group Limited
Notes to Accompany the Unaudited Results Announcement
for the year ended 30 June 2021
2SEGMENT INFORMATION - OPERATIONAL PERFORMANCE (CONTINUED)
(c)Interest, deprecation and amortisation
Interest revenue
Interest expense
30 June 202130 June 202030 June 202130 June 202030 June 202130 June 2020
12 mths $'00015 mths $'00012 mths $'00015 mths $'00012 mths $'00015 mths $'000
New Zealand4 72 71 63 194 267
Australia- 1 107 49 1,106 438
4 73 178 112 1,300 705
3SEGMENT INFORMATION - REVENUE
(a)Revenue streams
30 June 202130 June 2020
$'000$'000
- -
Revenue from software and licences
4,280 3,507
- -
Revenue from services and support
9,934 7,836
- -
Revenue from iSell
865 169
Revenue from hosting services
1,032 903
- -
Revenue from other fees
2 5
- - 16,113 12,420
Software and licencesServices and supportITQuoter RevenueExoHostedother fees
(b)Revenue by geographical location
30 June 2021
$'000$'000$'000$'000$'000$'000
-
New Zealand
1,401 2,562 96 456 2 4,517
-
Australia
2,879 7,372 560 576 - 11,387
EMEA*
- - 107 - - 107
North America
- - 4 - - 4
Asia
- - 98 - - 98
- - 4,280 9,934 865 1,032 2 16,113
* Europe, Middle East and Africa
30 June 2020
$'000$'000$'000$'000$'000$'000
-
New Zealand
1,788 4,074 11 449 2 6,324
-
Australia
1,719 3,762 155 454 3 6,093
-
EMEA*
- - 2 - - 2
-
North America
- - 1 - - 1
- - 3,507 7,836 169 903 5 12,420
Depreciation and
amortisation expense
Total
Revenue from
software and
licences
Revenue from
services and
support
Revenue from
iSell
Revenue from
hosting services
Revenue from
other fees
Total
Revenue from
software and
licences
Revenue from
services and
support
Revenue from
iSell
Revenue from
hosting services
Revenue from
other fees
8

Enprise Group Limited
Notes to Accompany the Unaudited Results Announcement
for the year ended 30 June 2021
4SEGMENT INFORMATION - BALANCE SHEET
(a)Balance Sheet - Business Segments
Total assets
Total liabilities
30 June 202130 June 202030 June 202130 June 2020
$'000$'000$'000$'000
Enterprise Division15,730 16,521 7,547 10,372
iSell4,699 4,579 1,134 1,086
Corporate2,224 4,632 181 505
22,653 25,732 8,862 11,963
Inter-segment elimination175 (2,425) 175 (2,425)
22,828 23,307 9,037 9,538
- - - -
(b)Balance Sheet - Geographical Locations
Total assets
Total liabilities
30 June 202130 June 202030 June 202130 June 2020
$'000$'000$'000$'000
New Zealand6,641 8,336 2,667 2,969
Australia16,260 17,027 6,443 8,625
22,901 25,363 9,110 11,594
Inter-segment elimination(73) (2,056) (73) (2,056)
- -
22,828 23,307 9,037 9,538
- -
5DIVIDENDS
Recognised and paid in the year to
30 June 202130 June 202030 June 202130 June 2020
cents per sharecents per share$'000$'000
Final dividend for the period ended 30 June 20202.00 - 318,018 -
Interim dividend for the period ended 30 June 20212.00 - 321,032 -
####4.00 - 639,050 -
On 24 August 2021 the Directors resolved to provide for a final dividend to be paid in respect of the period ended 30 June 2021. The dividend will be paid at a rate of
2.5 cents per share for all shares on issue at 7 September 2021. No imputation credits are available to be attached.
9

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Enprise Group reports unaudited $0.831m profit,
declares dividend

AUCKLAND, 27 August, 2021. Hi-tech software and services investment company Enprise Group (NZX:
ENS) today reported unaudited revenue for the year ended 30 June 2021 of $16.1 million, up from
$12.4 million for the 15 months ended 30 June 2020. The Enprise Group board has approved a 2.5c
final dividend.

Earnings per share were 6.84 cents. Net tangible assets per share and total assets per share as at 30 June
2021 were $0.13 and $1.41 respectively.

Australian government assistance of $0.75 million across the group enabled Enprise to maintain its
workforce despite COVID-19 disruptions to the business.

At 30 June 2021 cash at bank was $2.81 million (down $0.36 million from 30 June 2020). The business
repaid all remaining bank debt during the year and has available un-utilised facilities with the BNZ of $3
million.

Total comprehensive income for the year ended 30 June 2021 was $0.83 million (down from $1.67
million for the 15 months ended 30 June 2020). This decline was primarily due to losses incurred at
investee entity iSell Pty Ltd (the results of which have been consolidated for a full financial year in 2021)
as we invested in cloud product functionality and opening international markets.

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


Enterprise Division

The Enterprise Division had recurring revenue of $3.32 million and contracted revenue (including
revenue from hosting services) of $2.65 million for the year to 30 June 2021 out of its overall revenue of
$15.24 million.

The Enterprise Division (Kilimanjaro Consulting and Enprise Solutions) currently operates as ‘One
Company, Two Brands’. Achieving business synergies between the two complementary companies
helped Enprise to post a strong result. A decision has been made by the Board to combine the Enterprise

Division under a single brand ‘Kilimanjaro Consulting’. This will create additional synergies and cost
savings. The division will operate as ‘One Company, One Team, One Brand’.

“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 Enterprise Division CEO, Ronnie Baskind.

iSell

Elliot Cooper says Enprise Group subsidiary iSell Pty Ltd (iSell) will complete a major new release in late
2021, introducing e-commerce functionality that allows clients to customise their own portals.

“The new release is helping iSell to remain ahead of its competitors. 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, South Africa and USA. We expect the new release to sharpen iSell’s competitive edge
and help it to seize market share,” he says.

Annual recurring revenue (ARR) has increased to $0.8 million. The European market has grown to 53
customers. iSell has secured its first customers in the USA and is planning on expansion in this market
during FY22. Enprise currently owns 71% of iSell.

Datagate

Enprise Group’s joint venture with Datagate Innovation Ltd (Datagate) grew its annual recurring revenue
(ARR) to over $1.6 million, an increase of 47%. Datagate has more than doubled its ARR in the USA over
the last year to 30 June 2021. 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 is strong. Its core
clients are suppliers of advanced unified communications systems and remote working solutions.

At the November 2020 fully subscribed rights issue price of $2.20 per share, Enprise's 2,010,397
shareholding in Datagate has a notional value of approximately $4.42 million. This compares favourably
to the actual carrying value in the Enprise books at 30 June 2021 of $0.83 million.

Vadacom

Vadacom Holdings Ltd (Vadacom) continued to grow ARR to $2.50 million (up 14.9%) year-on-year.
Contracted revenue was $0.52 million at 31 March 2021. Vadacom has recently released its new cloud
PBX phone system ‘Next Voice’. As a result of an independent valuation of Vadacom, Enprise Group
realised a $0.02 million increase in the carrying value of this investment in the period. Vadacom had a
share buy-back during the period. This together with the change in valuation saw a change in carrying
value to $0.69 million.

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 world-wide. Datagate Innovation provides SaaS Telecom Billing for MSPs in the U.S, U.K,
Australia, New Zealand and Canada. Vadacom specialises in cloud phone system software development
and unified communications solutions for Australian and New Zealand businesses.

Ends.

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Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at 17 October 2019


Results for announcement to the market
Name of issuer Enprise Group Limited
Reporting Period 12 months to 30 June 2021
Previous Reporting Period 15 months to 30 June 2020
Currency New Zealand Dollar
Amount (000s) Percentage change
Revenue from continuing
operations
$16,113 30%
Total Revenue $16,113 30%
Net profit/(loss) from
continuing operations
$ 371 -71%
Total net profit/(loss) $ 770 -43%
Interim/Final Dividend
Amount per Quoted Equity
Security
$ 0.025
Imputed amount per Quoted
Equity Security
$0.00
Record Date 7 September 2021
Dividend Payment Date 21 September 2021
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.13 $0.14
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood

Authority for this announcement
Name of person authorised
to make this announcement
Elliot Cooper
Contact person for this
announcement
Elliot Cooper
Contact phone number 0275615501
Contact email address elliot@enprisegroup.com
Date of release through MAP

27 August 2021

Unaudited financial statements accompany this announcement.