Half Year Report to 31 December 2021

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)


Results for announcement to the market
Name of issuer Enprise Group Limited
Reporting Period 6 months to 31 December 2021
Previous Reporting Period 6 months to 31 December 2020
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$ 8,988 21%
Total Revenue $ 8,988 21%
Net profit/(loss) from
continuing operations
$ (1,260) -361%
Total net profit/(loss) $ (1,300) -316%
Interim/Final Dividend
Amount per Quoted Equity
Security
$ To be advised
Imputed amount per Quoted
Equity Security
$ To be advised
Record Date To be advised
Dividend Payment Date To be advised
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.06 $0.17
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

28 February

Unaudited financial statements accompany this announcement.

---

Enprise Group Limited
Half Year Report
for the six months ended 31 December 2021

Enprise Group Limited
Half Year Report
for the six months ended 31 December 2021
Contents
Directors Report
2
Condensed Interim Consolidated Statement of Comprehensive Income
4
Condensed Interim Consolidated Statement of Financial Position
5
Condensed Interim Consolidated Statement of Changes in Equity
7
Condensed Interim Consolidated Statement of Cash Flows
8
Notes to the Condensed Interim Consolidated Financial Statements
9
Corporate Information
17
1

Enprise Group Limited
Directors' Report
The Directors are pleased to submit to shareholders their interim report and financial statements for the six-month period ended 31 December 2021.
Principal activities
Review of operations and outlook
Kilimanjaro Consulting business
iSell business
Datagate investment
Following the completion during the period of our “One Company One Team One Brand” transition process, our Enprise Solutions and Kilimanjaro
Consulting divisions are now formally operating as Kilimanjaro Consulting. The synergies and economies of scale created have improved Kilimanjaro’s
competitive advantage and will enable us to better implement the larger/more complex MYOB Advanced sites.
Enprise achieved excellent revenue growth during the six-month period across its operating divisions (20.7%) and investee entities. Unfortunately, the
withdrawal of $756,000 of COVID-19 Australian government assistance, which benefited the prior period only, coupled with a need to significantly increase
salaries months earlier than we were able to pass on price increases to customers, saw this growth come at the expense of short-term operating losses.
With price increases now implemented and the seasonally stronger second half commencing we expect to see significant improvements in operating
performance.
Enprise Group Limited (Enprise) is a hi-tech software and services investment company that has two operating divisions:
- iSell Pty Limited (Sell), a developer/seller of a cloud-based quoting system (ITQuoter) on a Software-as-a-Service (SaaS) model to the Managed
Service Provider (MSP) market in Australia, UK/Europe, NZ, South Africa, and North America.
With over 1,200 unique sites across Australia and New Zealand, Kilimanjaro is MYOB’s largest enterprise reseller/ implementation partner. This broad
customer base, which is not limited to any particular industry segment, positions Kilimanjaro well to take advantage of the continuing transition to the cloud
whilst still benefitting from a stable, well supported and continually developed on premise offering. Kilimanjaro’s licencing and contracted revenues
(excluding implementation services) for the six months was $3,266,600 or 20.1% higher than the six months to 31 December 2020 and is testament to this
significant base of long-term clients.
Kilimanjaro recently, for the 11th consecutive year, received the MYOB “Australian Excellence in Business Development” award and continues as one of
the few MYOB Diamond Partners.
The operating losses will see Enprise breach its BNZ banking covenants. A formal waiver of the breach is being sought from BNZ and management are
confident of meeting the BNZ requirements to gain this waiver. With bank debt of $500,000 compared to $1,402,000 cash at bank, we will be able to
manage this matter.
During the period, we advanced NZ$500,000 (of a fully subscribed NZ$1,550,000 convertible note issue) to ensure we maintained our position as the
largest shareholder. These funds were to be used by Datagate to enable it to continue its growth whilst simultaneously seeking a significant strategic
North American investor.
Datagate had 164 paying customers at 31 December 2021 representing annualised recurring revenue (ARR) of NZ$2.07 million, an increase of 65% over
the last 12 months and an even more dramatic 116% in North America. Datagate now has 8 distributors, significantly expanding its sales reach in North
America – the current growth engine for the business.
- Kilimanjaro Consulting (formerly known as the “Enterprise Solutions” division), an accounting solutions provider for MYOB Enterprise software in
Australia and New Zealand.
Enprise Group has two additional strategic investments:
- 31.95% of Datagate Innovation Limited (Datagate), a developer/provider of online reporting/billing services under a SaaS model for MSP’s reselling
Telecom/Utility services in North America, Australia, New Zealand, and UK/Europe.
- 6.23% of Vadacom Limited (Vadacom), a developer/provider of multi-tenant cloud based VoIP solution for corporations in New Zealand and Australia.
MYOB’s decision in May 2021 to compete in the sector with its other channel partners like Kilimanjaro, saw MYOB acquire a number of channel partners
during the period to 31 December 2021. This has to date had limited impact on Kilimanjaro and we continue to work constructively with MYOB, particularly
at the upper end of the enterprise market for the MYOB Advanced ERP product.
iSell, with its new SaaS Software platform, grew its licensing revenues by 28.3% compared to the equivalent prior period. iSell is now regularly adding new
customers to its cloud platform and is well positioned to add to the 315 customers it had at 31 December 2021. iSell continues to work with its customers
to expand its product feature set to meet their requirements. The US sales tax integration, which is expected to be certified shortly, will assist in growing
the US customer base from the 2 US customers iSell had at 31 December 2021. iSell needs to grow its customer base significantly to achieve operating
profitability but the board believes it is now well positioned to achieve that strong growth.
During the period, Enprise invested around A$55,000 to increase its holding in iSell to 72.2% via the acquisition of shares from minority shareholders at
36.78 cents per share.
The Board is pleased with the progress of our Datagate investment of which we own 31.95% or 2,010,397 shares. At the last rights issue pricing these
shares were worth NZ$4,422,873. This investment is held in the balance sheet at approximately NZ$607,000 at 31 December 2021.
2

Enprise Group Limited
Directors' Report
Vadacom investment
Significant changes in the state of affairs
Directors
Mr Lindsay Phillips (appointed 1 December 2013) - Chairman
Mr George Cooper (appointed 10 April 2012) - CEO
Mr Nicholas Paul (appointed 1 December 2015) – Independent Non-Executive Director
Mr Ronald Baskind (appointed 31 January 2018) – Executive Director
Ms Marisa Fong (appointed 1 February 2019) – Independent Non-Executive Director
Rounding of amounts
Amounts in the directors’ report and financial statements have been rounded off to the nearest thousand dollars.
The directors’ report is signed for and on behalf of the Board, and was authorised for issue on the date below.
Lindsay Phillips (Director)George Cooper (Director)
28 February 2022
28 February 2022
Enprise subscribed $0.500m participating in a convertible note issue for Datagate, which raised NZ$1.550m, being the maximum allowed. The purpose of
the convertible note is to enable continued growth while seeking a strategic North American investor. At 31 December 2021, Datagate had annual
recurring revenues (ARR) of $2.07 million which represented annual growth of 65%. The ARR growth in North America for 2021 was 116%. If Enprise
Group's 2,010,397 shares in Datagate with an unaudited carrying value of $0.607m were valued at the last rights issue price of $2.20 per share, the value
of the investment would be $4.423m.
Enprise invested AUD 0.055m acquiring shares from existing shareholders in iSell at 36.78 cents AUD per share on 10 December 2021. The acquisition of
these shares increased Enprise Group's share of iSell to 72.2%. Elliot Cooper replaced Nick Paul as the acting CEO of iSell from 12 October 2021.
Enprise Group achieved the number six spot in the Absolute IT Supreme Scale-Up awards due to its 30% revenue growth. Enprise Group’s revenue was
$3.7 million higher for 2021, to $16.1 million. The results were announced at the Tech Pulse 2021 virtual, interactive launch event. The Absolute IT
Supreme Scale-Ups are the Next100 companies (ranked between 101-200 in the TIN200) with the largest revenue growth in the past year.
Kilimanjaro Consulting continues to move towards “One Company – One Team – One Brand”. The division is a strategic partner of MYOB and we
continue to work constructively with them. Kilimanjaro Consulting is targeting the top end of MYOB products target market, this is currently a market
segment MYOB’s direct channel does not service.
Vadacom continues to operate profitably and has no debt. During the period Vadacom continued to invest in its new multi-tenanted cloud VoIP solution
“Next Voice.” Despite the product requiring more development, Vadacom have 564 extensions deployed at 31 December 2021 and expect to grow this
number rapidly in 2022.
Enprise owns only 6.23% of Vadacom which we carry at approximately NZ$687,000.
3

Enprise Group Limited
Condensed Interim Consolidated Statement of Comprehensive Income
for the six months ended 31 December 2021
31 Dec 202131 Dec 202030 June 2021
Note
UnauditedUnauditedAudited
6 mths $'0006 mths $'00012 mths $'000
Revenue from contracts with customers
3
8,9887,44716,113
Government assistance4756753
Employee expense
4
(7,295)(5,479)(11,806)
Other operating costs(2,689)(2,154)(4,431)
Other gains/(losses) - net(9)(6)-
Operating profit
(1,001)564629
Equity earnings/(losses) from associates and joint ventures(234)(236)(474)
Other gains/(losses) related to associates and joint ventures8224344
Finance cost - net(33)(70)(129)
Profit/(loss) before income tax
(1,260)482370
Income tax benefit/(expense)(40)121402
Profit/(loss) for the period(1,300)603772
Other Comprehensive Income
Items that may be reclassified to profit or loss
Foreign currency translation differences(120)1938
Items that will not be reclassified to profit or loss
Changes in the fair value of investments through other comprehensive income- - 23
Total other comprehensive income for the period, net of tax(120)19 61
Total comprehensive income for the period
(1,420)622833
Profit for the period is attributable to:
Non-Controlling Interest(283)(153)(326)
Owners of Enprise Group Limited
(1,017)7561,098
(1,300)603772
Total comprehensive income for the period is attributable to
Non-Controlling Interest(283)(153)(326)
Owners of Enprise Group Limited
(1,137)7751,159
(1,420)622833
Earnings per share from profit for the period attributable to ordinary shareholders of the Enprise Group Limited
Basic and diluted earnings per share (see note 5) cents per share(6.29) 4.74 6.85
These interim condensed consolidated financial statements should be read in conjunction with the accompanying notes
4

Enprise Group Limited
Condensed Interim Consolidated Statement of Financial Position
as at 31 December 2021
31 Dec 202131 Dec 202030 June 2021
Note
UnauditedUnauditedAudited
$'000$'000$'000
Current assets
Cash and cash equivalents
10
1,4022,4932,806
Trade and other receivables
2,2292,2922,821
Contract assets
681768713
Current tax assets
711
Loans to related parties
12(e)
- 62-
Other current assets
- 102-
Total current assets
4,3195,7186,341
Non-current assets
Investments in joint ventures and associates
7
607951833
Convertible note
7(a)
500- -
Investments in other entities
8
687664687
Staff receivables - non current
- 92106
Property plant and equipment
405396384
Intangible assets
9
10,88610,89010,810
Right-of-use assets - non-current
1,3251,4711,568
Deferred tax asset
1,8261,7641,960
Loans to related parties - non current
12(e)
878787
Other non-current assets
575054
Total non-current assets
16,38016,36516,489
Total assets
20,69922,08322,830
These interim condensed consolidated financial statements should be read in conjunction with the accompanying notes
5

Enprise Group Limited
Condensed Interim Consolidated Statement of Financial Position
as at 31 December 2021
31 Dec 202131 Dec 202030 June 2021
Note
UnauditedUnauditedAudited
$'000$'000$'000
Current liabilities
Trade and other payables
2,4232,1182,555
Provisions
1,5381,3681,525
Contract liabilities
2,0462,2522,362
Borrowings
10
538- 50
Lease liabilities
546509572
Total current liabilities
7,0916,2477,064
Non-current liabilities
Provisions - non-current
200177181
Borrowings - non current
10
- 174-
Lease liabilities - non-current
8781,0421,087
Deferred tax liability
616789705
Total non-current liabilities
1,6942,1821,973
Total liabilities
8,7858,4299,037
Net assets
11,91413,65413,793
Equity
Share capital
5(a)11,01010,90611,010
Foreign exchange translation reserve
76177196
Financial assets at FVOCI reserve
588565588
Retained earnings
(19)1,1951,444
Equity attributable to the owners of Enprise Group Limited11,65512,84313,238
Non-controlling interests
6259811555
Total equity
11,91413,65413,793
- - -
These financial statements have been authorised for issue by the Directors.
For and on behalf of the Board:
Lindsay Phillips (Director)George Cooper (Director)
28 February 2022
28 February 2022
Total assets per share ($ per share)
1.28 1.38 1.41
Net tangible assets per share ($ per share)0.06 0.17 0.18
These interim condensed consolidated financial statements should be read in conjunction with the accompanying notes
6

Enprise Group Limited
Condensed Interim Consolidated Statement of Changes in Equity
for the six months ended 31 December 2021
Share capital
Foreign
exchange
translation
reserve
Financial
assets at
FVOCI
reserve
Retained
earnings
Non-
controlling
interests
Total equity
$'000$'000$'000$'000$'000$'000
Balance at 1 July 202010,749 158 565 912 1,385 13,769
Transactions with shareholders in their capacity as owners
Dividends paid- - - (318) - (318)
New shares issued157 - - - - 157
Transactions with non-controlling interests
- - - (155) (421) (576)
Total transactions with shareholders
157 - - (473) (421) (737)
Comprehensive income
Profit for the period
- - - 756 (153) 603
Other comprehensive income
- 19 - - - 19
Total comprehensive income net of tax (as restated)19 - 756 (153) 622
Balance at 31 December 2020 (unaudited)
10,906 177 565 1,195 811 13,654
Balance at 1 July 202111,010 196 588 1,444 555 13,793
Transactions with shareholders in their capacity as owners
Dividends paid
- - - (404) - (404)
Transactions with non-controlling interests- - - (42) (13) (55)
Total transactions with shareholders
- - - (446) (13) (459)
Comprehensive income
Profit for the period- - - (1,017) (283) (1,300)
Other comprehensive income
- (120) - - - (120)
Total comprehensive income net of tax
- (120) - (1,017) (283) (1,420)
Balance at 31 December 2021 (unaudited)
11,010 76 588 (19) 259 11,914
Balance at 1 July 202010,749 158 565 912 1,385 13,769
Transactions with shareholders in their capacity as owners
Dividends paid- - - (639) - (639)
New shares issued261 - - - - 261
Transactions with non-controlling interests
- - - 73 (504) (431)
Total transactions with shareholders
261 - - (566) (504) (809)
Comprehensive income
Profit for the period- - - 1,098 (326) 772
Other comprehensive income
- 38 23 - - 61
Total comprehensive income net of tax
- 38 23 1,098 (326) 833
Balance at 30 June 2021 (audited)
11,010 196 588 1,444 555 13,793
These interim condensed consolidated financial statements should be read in conjunction with the accompanying notes
7

Enprise Group Limited
Condensed Interim Consolidated Statement of Cash Flows
for the six months ended 31 December 2021
Note
31 Dec 202131 Dec 202030 June 2021
UnauditedUnauditedAudited
6 mths $'0006 mths $'00012 mths $'000
Operating activities
Cash was provided from:
Receipts from customers
12,620 11,340 23,855
Government assistance
4 858 935
Interest received
1 1 2
12,62512,19924,792
Cash was applied to:
Payments to suppliers & employees
12,654 10,818 22,445
Interest paid
35 73 132
Income tax paid
7 - -
12,69610,89122,577
Net cash inflow (outflow) from operating activities13(71) 1,308 2,215
Investing activities
Cash was provided from:
Loans repaid by staff- 13 13
Term deposits- - 100
Share buy back fropm other entities- - 62
- 13 175
Cash was applied to:
Purchase of property, plant and equipment99 128 190
Software development costs129 - 272
Investment in equity accounted joint venture- 335 335
Convertible note500 - -
Purchase of business325 11 18
Lending to third parties- - 5
1,053474820
Net cash inflow (outflow) from investing activities(1,053) (461) (645)
Financing activities
Cash was provided from:
Proceeds of bank borrowings500 - -
Proceeds from issue of shares in iSell Pty Limited to non-controlling interests- - 146
500 - 146
Cash was applied to:
Dividends paid net of reinvestment plan404 161 378
Purchase of shares in iSell Pty Limited from non-controlling interests55 576 576
Repayment of lease liabilities296 336 656
Repayment of bank borrowings- 441 441
Repayment of otther borrowings12 3 2
767 1,517 2,053
Net cash inflow (outflow) from financing activities(267) (1,517) (1,907)
Net increase / (decrease) in cash and cash equivalents held(1,391) (670) (337)
Net foreign exchange differences(13) (6) (26)
Cash and cash equivalents at beginning of the period2,806 3,169 3,169
Cash and cash equivalents at end of the period
10
1,402 2,493 2,806
- - -
These interim condensed consolidated financial statements should be read in conjunction with the accompanying notes .
8

Enprise Group Limited
Notes to the Condensed Interim Consolidated Financial Statements
for the six months ended 31 December 2021
1BASIS OF PREPARATION
(a)Reporting entity
(b)Compliance statement
- IAS 34 Interim Financial Reporting and NZ IAS 34 Interim Financial Reporting;
- the requirements of the Financial Market Conduct Act 2013, the Companies Act 1993, and the NZX listing rules;
(c)Basis of preparation
(d)Principles of consolidation
The condensed interim consolidated financial statements comprise the financial statement of the company and its subsidiaries.
Percentage ownership
31 Dec 202131 Dec 202030 June 2021
Enprise Solutions LimitedNew ZealandSoftware sales and solutions100.00 100.00 100.00
Enprise Australia Pty LimitedAustraliaSoftware sales and solutions100.00 100.00 100.00
Kilimanjaro Consulting Pty LimitedAustraliaSoftware sales and solutions100.00 100.00 100.00
Enprise LimitedNew ZealandSoftware sales and solutions100.00 100.00 100.00
Global Bizpro LimitedNew ZealandSoftware sales and solutions100.00 100.00 100.00
Kilimanjaro Consulting LimitedNew ZealandSoftware sales and solutions100.00 100.00 100.00
iSell Pty LimitedAustraliaSoftware sales and solutions72.21 67.61 71.14
iSell Philippines IncPhilippinesSoftware sales and solutions72.21 67.61 71.14
(e)Accounting policies and significant estimates and assumptions
Country of incorporation Principal Activity
Subsidiaries are all entities over which the Company has control. The Company controls an entity when the Company is exposed to, or has rights to, variable
returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are consolidated from the date
on which control is transferred to the Company. They are deconsolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains or losses on transactions between Group companies are eliminated. Accounting policies of subsidiaries
are changed when necessary to ensure consistency with the policies adopted by the Company.
Name of Entity
Enprise Group Limited (the company) and its subsidiaries (together the Group) is a hi-tech software and services investment company in Australia and New
Zealand. The company is a limited liability company incorporated and domiciled in New Zealand and is listed on the New Zealand Stock Exchange (NZX). The
Group is registered under the Companies Act 1993 and is a FMC Reporting Entity under Part 7 of the Financial Markets Conduct Act (FMCA) 2013. The address of
its registered office is 16 Hugo Johnston Drive, Penrose, Auckland.
The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets and liabilities at fair value.
The consolidated financial statements are presented in New Zealand dollars which is the Company's functional currency and the Group's presentation currency. All
financial information has been prepared in thousands, unless otherwise stated.
The same accounting policies included in the Group's Annual Report for the year ended 30 June 2021 have been applied when preparing these financial
statements. There have been no changes to accounting policies, estimates and assumptions.
The interim condensed consolidated financial statements are for Enprise Group Limited and its subsidiaries and have been prepared in accordance with:
The unaudited interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements,
and should be read in conjunction with the Group’s annual financial statements for the year ended 30 June 2021.
- the going concern convention, which contemplates continuity of normal business activities, the realisation of assets, and the settlement of liabilities in the ordinary
course of business.
9

Enprise Group Limited
Notes to the Condensed Interim Consolidated Financial Statements
for the six months ended 31 December 2021
2SEGMENT INFORMATION
(a)Operational performance
Revenue
Operating profit
Business segments
31 Dec 202131 Dec 202030 June 202131 Dec 202131 Dec 202030 June 2021
6 mths $'0006 mths $'00012 mths $'0006 mths $'0006 mths $'00012 mths $'000
Kilimanjaro Consulting8,464 6,994 15,239 209 1,342 2,404
iSell509 453 865 (760) (375) (1,003)
Corporate15 - 9 (450) (403) (772)
- -
8,988 7,447 16,113 (1,001) 564 629
Equity earnings and gains related to associates and joint ventures(226) (12) (130)
Net interest expense(33) (70) (129)
- -
Profit/(loss) before taxation(1,260) 482 370
- -
Income Tax(40) 121 402
- -
Net profit/(loss) attributable to shareholders(1,300) 603 772
Revenue
Geographic segments
31 Dec 202131 Dec 202030 June 2021
6 mths $'0006 mths $'00012 mths $'000
New Zealand2,685 1,986 4,517
Australia6,199 5,419 11,387
EMEA*81 41 107
North America- 1 4
Asia23 - 98
- -
8,988 7,447 16,113
* Europe, Middle East and Africa
(b)Interest, depreciation and amortisation
Interest revenue
Interest expense
31 Dec 202131 Dec 202030 June 202131 Dec 202131 Dec 202030 June 2021
6 mths $'0006 mths $'00012 mths $'0006 mths $'0006 mths $'00012 mths $'000
New Zealand2 3 5 35 39 72
Australia- - 1 - 34 63
2 3 6 35 73 135
Depreciation and amortisation expense
31 Dec 202131 Dec 202030 June 2021
6 mths $'0006 mths $'00012 mths $'000
New Zealand136 95 194
Australia516 595 1,152
652 690 1,346
(c)Balance sheet information
Total assets
Total liabilities
31 Dec 202131 Dec 202030 June 202131 Dec 202131 Dec 202030 June 2021
$'000$'000$'000$'000$'000$'000
New Zealand6,992 7,393 6,643 4,416 2,691 2,667
Australia15,358 15,577 16,260 6,020 6,625 6,443
22,350 22,970 22,903 10,436 9,316 9,110
Inter-segment elimination(1,651) (887) (73) (1,651) (887) (73)
- -
20,699 22,083 22,830 8,785 8,429 9,037
- - - - - - - -
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.
10

Enprise Group Limited
Notes to the Condensed Interim Consolidated Financial Statements
for the six months ended 31 December 2021
2SEGMENT INFORMATION (CONTINUED)
(c)Balance sheet information (continued)
Total assets
Total liabilities
31 Dec 202131 Dec 202030 June 202131 Dec 202131 Dec 202030 June 2021
$'000$'000$'000$'000$'000$'000
Kilimanjaro Consulting15,554 15,866 15,730 7,493 8,507 7,547
iSell4,031 4,218 4,699 1,324 1,088 1,134
Corporate2,656 3,296 2,226 1,510 131 181
22,241 23,380 22,655 10,327 9,726 8,862
Inter-segment elimination(1,542) (1,297) 175 (1,542) (1,297) 175
20,699 22,083 22,830 8,785 8,429 9,037
- - - - - -
3REVENUE
- - -
31 Dec 202131 Dec 202030 June 2021
6 mths $'0006 mths $'00012 mths $'000
- -
Revenue from software and licences
2,165 1,871 4,280
- -
Revenue from services and support
5,671 4,666 9,934
- -
Revenue from iSell
509 453 865
Revenue from hosting services
640 457 1,032
- -
Revenue from other fees
3 - 2
- - 8,988 7,447 16,113
Software and licencesServices and supportExoHostedITQuoter Revenueother fees
Geographical location
31 Dec 2021
$'000$'000$'000$'000$'000
6 mths $'000
-
New Zealand
745 1,590 284 63 3 2,685
-
Australia
1,420 4,081 356 342 - 6,199
EMEA*
- - - 81 - 81
Asia
- - - 23 - 23
- - 2,165 5,671 640 509 3 8,988
* Europe, Middle East and Africa
Geographical location
31 Dec 2020
$'000$'000$'000$'000$'000
6 mths $'000
-
New Zealand
599 1,123 213 51 - 1,986
-
Australia
1,272 3,543 244 360 - 5,419
EMEA*
- - - 41 - 41
North America
- - - 1 - 1
- - 1,871 4,666 457 453 - 7,447
Geographical location
30 June 2021
$'000$'000$'000$'000$'000
12 mths $'000
-
New Zealand
1,401 2,562 456 96 2 4,517
-
Australia
2,879 7,372 576 560 - 11,387
-
EMEA*
- - - 107 - 107
North America
- - - 4 - 4
-
Asia
- - - 98 - 98
- - 4,280 9,934 1,032 865 2 16,113
Other feesTotal
Software &
licences
Exo Hosted
Software &
licences
Software &
licences
Services and
support
Exo HostediSell
Services and
support
TotaliSell
Total
Services and
support
Other feesExo Hosted
iSellOther fees
11

Enprise Group Limited
Notes to the Condensed Interim Consolidated Financial Statements
for the six months ended 31 December 2021
4EMPLOYEE BENEFIT EXPENSE
31 Dec 202131 Dec 202030 June 2021
6 mths $'0006 mths $'00012 mths $'000
Wages and salaries
6,821 5,148 11,087
Superannuation
429 286 629
Directors remuneration
45 45 90
7,295 5,479 11,806
- - -
5SHARE CAPITAL AND EARNINGS PER SHARE
(a)Share capital
Number of authorised sharesShare capital
31 Dec 202131 Dec 202030 June 202131 Dec 202131 Dec 202030 June 2021
sharessharesshares$'000$'000$'000
Opening ordinary shares16,157,699 15,900,895 15,900,895 11,010 10,749 10,749
Share issue - Dividend reinvestment plan- 150,693 256,804 - 157 261
- - 16,157,699 16,051,588 16,157,699 11,010 10,906 11,010
(b)Earnings per share
There are no instruments that could potentially dilute earnings per share.
31 Dec 202131 Dec 202030 June 2021
6 mths $'0006 mths $'00012 mths $'000
Earnings for the purpose of basic and diluted earnings per share:
Net profit attributable to shareholders
(1,017) 756 1,098
Weighted average number of ordinary shares for basic earnings per share
16,158 15,950 16,035
Basic and diluted earnings per share (cents)
(6.29) 4.74 6.85
6NON CONTROLLING INTEREST
31 Dec 202131 Dec 202030 June 2021
$'000$'000$'000
Carrying amount at the beginning of the period555 1,385 1,385
Transactions with non-controlling interests- - 145
Purchase of shares from non-controlling interest(55) (576) (576)
Movement attributable to the owners of the parent42 155 (73)
Share of profit/(loss) for the period(283) (153) (326)
259811555
Share capital comprises of ordinary shares only. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction,
net of tax, from the proceeds.
Contributed equity
ordinary shares
Basic earnings per share is calculated by dividing the profit attributable to shareholders of the Company by the weighted average number of shares on issue during
the year. Diluted earnings per share assumes conversion of all dilutive potential ordinary shares in determining the denominator.
Enprise Group Limited consolidates 100% of iSell Pty Limited results and presents the portion of profit/(loss) and other comprehensive income attributable to a non-
controlling interest (NCI).
Enprise Group Limited acquired a controlling stake in iSell on 27 May 2020. Equity was also introduced by other non-controlling interests amounting to NZ$492,000
which resulted in a non-controlling interest percentage of 49.18% on this date.
Non-controlling interest
On 31 December 2020 Enprise Group acquired an additional 16.79% shareholding in iSell Pty Limited from existing shareholders for $575,597 increasing the
overall shareholding to 67.61% and reducing the non-controlling interest to 32.39%.
All shares on issue are fully paid. All ordinary shares rank equally with one vote attached to each fully paid ordinary share and have equal dividend rights and no
par value.
12

Enprise Group Limited
Notes to the Condensed Interim Consolidated Financial Statements
for the six months ended 31 December 2021
7INVESTMENTS IN JOINT VENTURES AND ASSOCIATES
31 Dec 202131 Dec 202030 June 2021
$'000$'000$'000
Carrying amount at the beginning of the period833 628 628
New investment in joint ventures and associates- 335 335
-
Equity earnings/(losses) from associates and joint ventures
(234) (236) (474)
- -
Other gains/(losses) related to associates and joint ventures
8 224 344
- -
607951833
31 Dec 202131 Dec 202030 June 2021
$'000$'000$'000
Investment in equity accounted joint venture
Datagate Innovation Limited607 951 833
- -
607951833
-
Percentage ownership
31 Dec 202131 Dec 202030 June 2021
Datagate Innovation LimitedNew ZealandSoftware sales31.95 33.12 32.02
(a)Convertible Note
8INVESTMENTS IN OTHER ENTITIES
31 Dec 202131 Dec 202030 June 2021
$'000$'000$'000
Carrying amount at the beginning of the period687 813 813
- - Changes in fair value of other investments- - 23
Sale of investment in other entities (share buy back)- (149) (149)
- -
687664687
31 Dec 202131 Dec 202030 June 2021
$'000$'000$'000
- - Vadacom Holdings Limited
687664687
Vadacom Holdings Limited
Carrying amount of joint ventures and associates
Investment in joint venture or associate
On 22 December 2020 Vadacom Holdings Limited agreed to a shareholder buyback. 42% of the share buyback amount was paid out to shareholders subsequent
to period end with the remainder deferred.
Country of incorporation Principal Activity
Carrying amount of investments in other entities
The Group's joint venture and associates at 31 Dec 2021 are set out below. The country of incorporation or registration is also their principal place of business.
On 20 December 2021 Enprise Group advanced $500,000 to Datagate as part of a $1.5M convertible note offering. The note attracts interest at 7% which will be
capitalised against the loan. The loan will be converted into shares automatically on the date of a capital raise, automatically on the date of a liquidity event, at the
election of the company, or repaid in cash on the repayment date which is 15 months after the initial drawdown. The board conisdered the fair value at 31
December 2021 to be the face value of $500,000.
Name of Entity
13

Enprise Group Limited
Notes to the Condensed Interim Consolidated Financial Statements
for the six months ended 31 December 2021
9INTANGIBLE ASSETS
Software
$'000$'000$'000$'000$'000
At 1 July 2020 (audited)
Cost2,631 1,260 - 7,513 11,404
Accumulated amortisation and impairment(22) (422) - - (444)
Net book value2,609 838 - 7,513 10,960
Period ended 31 December 2020 (unaudited)
Opening net book value amount2,609 838 - 7,513 10,960
Additions140 - - - 140
Exchange differences16 1 - 8 25
Amortisation charge(134) (101) - - (235)
Closing net book value2,631 738 - 7,521 10,890
-
As at 31 December 2020 (unaudited)
Cost2,787 1,261 - 7,521 11,569
Accumulated amortisation and impairment(156) (523) - - (679)
- - Net book value2,631 738 - 7,521 10,890
Year ended 30 June 2021 (audited)
Opening net book value amount2,609 838 - 7,513 10,960
Additions273 - - - 273
Exchange differences24 4 - 25 53
Amortisation charge(273) (203) - - (476)
Closing net book value2,633 639 - 7,538 10,810
-
As at 30 June 2021 (audited)
Cost2,928 1,264 - 7,538 11,730
Accumulated amortisation and impairment(295) (625) - - (920)
- Net book value2,633 639 - 7,538 10,810
Period ended 31 December 2021 (unaudited)
Opening net book value amount2,633 639 - 7,538 10,810
Additions131 - 325 - 456
Exchange differences(33) (7) - (71) (111)
Amortisation charge(139) (97) (33) - (269)
Closing net book value2,592 535 292 7,467 10,886
- - - -
As at 31 December 2021 (unaudited)
Cost3,026 1,257 325 7,467 12,075
Accumulated amortisation and impairment(434) (722) (33) - (1,189)
- Net book value2,592 535 292 7,467 10,886
Kilimanjaro Consulting
iSell
Intellectual
Property
The directors have reviewed the recognised goodwill and intangible assets, and considered that the expected increase in profitability of Kilimanjaro in both Australia
and New Zealand for the remaining six months of the financial year and that forecasts for the future periods will achieve cash generating expectations, therefore no
indication of impairment within that division is required.
The directors have assessed the iSell carrying values, and noted a degree of under-performance relative to the revenue forecasts utilised at the time of the 30 June
2021 impairment test. The directors have considered current forecast information, discount rates, revenue multiples and tested the carrying value of iSell fair value
assessment for impairment at 31 December 2021 and remain of the view that no impairment is required based on current forecast information. The directors are
confident in the current forecast information due progress on delivery of the product road map and planned geographic expansion.
Customer
relationships
GoodwillTotal
14

Enprise Group Limited
Notes to the Condensed Interim Consolidated Financial Statements
for the six months ended 31 December 2021
10CASH AND CASH EQUIVALENTS / BORROWINGS
31 Dec 202131 Dec 202030 June 2021
$'000$'000$'000
Current cash on hand / (borrowings)
- -
Cash on hand and at bank
1,402 2,493 2,806
- -
Bank borrowings
(500) - (50)
Other borrowings
(38) - -
864 2,493 2,756
Non-current borrowings
Bank borrowings - non current
- (174) -
Other borrowings - non current
- - -
- -
Non-current borrowings
- (174) -
Net cash on hand
8642,3192,756
(a)Summary of borrowing arrangements
11DIVIDENDS
31 Dec 202131 Dec 202030 June 202131 Dec 202131 Dec 202030 June 2021
cents per sharecents per sharecents per share$'000$'000$'000
Final dividend - 30 June 2020- 2.00 2.00 - 318 318
Interim dividend - 30 June 2021- - 2.00 - - 321
Final dividend - 30 June 20212.50 - - 404 - -
- - 2.50 2.00 4.00 404 318 639
12RELATED PARTY TRANSACTIONS
(a)Interest in other Entities
(b)Ultimate Parent
The ultimate parent entity and controlling party is Enprise Group Limited. The Parent is domiciled in New Zealand.
(c)Transactions with Related Parties
During the period, the Group entered into the following trading transactions with related parties.
Sale of services Purchase of services
Name of Entity
31 Dec 202131 Dec 202030 June 202131 Dec 202131 Dec 202030 June 2021
6 mths $'0006 mths $'00012 mths $'0006 mths $'0006 mths $'00012 mths $'000
Vadacom Limited*16 2 12 - - -
Next Telecom*- - - 18 11 25
Nicholas Paul (Director)- - - 71 90 180
16 2 12 89 101 205
* Vadacom Limited and Next Telecom Limited are subsidiaries of Vadacom Holdings Limited
(d)Outstanding balances arising from sales/purchases of goods and services
The following balances are outstanding at the end of the reporting period in relation to transactions with related parties.
Amounts owed by related partiesAmounts owed to related parties
Name of Entity
31 Dec 202131 Dec 202030 June 202131 Dec 202131 Dec 202030 June 2021
$'000$'000$'000$'000$'000$'000
Next Telecom Limited- - - 3 4 3
Vadacom Limited4 - 3 - - -
4 - 3 3 4 3
On 4 February 2021, the Bank of New Zealand (BNZ) has provided the Group with an overdraft facility of $1,000,000 and a commercial loan facility. As at 31
December 2021 the group had drawn $500,000 of a possible $1,723,385 loan facility with an interest rate of 4.05%.
The Group's principal subsidiaries are set out in note 1(d). Unless otherwise stated, they have share capital consisting solely of ordinary shares that are held
directly by the Group. The country of incorporation or registration is also their principal place of business.
15

Enprise Group Limited
Notes to the Condensed Interim Consolidated Financial Statements
for the six months ended 31 December 2021
12RELATED PARTY TRANSACTIONS (CONTINUED)
(e)Loans to/from related parties
Amounts owed by related partiesAmounts owed to related parties
Name of Entity
31 Dec 202131 Dec 202030 June 202131 Dec 202131 Dec 202030 June 2021
$'000$'000$'000$'000$'000$'000
Vadacom Limited87 149 87 - - -
- -
87 149 87 - - -
- - Current- 62 - - - -
- - Non-Current87 87 87 - - -
87 149 87 - - -
13CASH FLOW RECONCILIATION
31 Dec 202131 Dec 202030 June 2021
6 mths $'0006 mths $'00012 mths $'000
Profit/(loss) for the period
(1,300) 603 772
Adjustments for:
Depreciation and amortisation
651 690 1,349
Net loss/(gain) on foreign exchange(2) 9 10
Impairment loss on trade receivables- 1 -
Share of loss from equity accounted investments226 12 130
Non cash employee transactions107 - -
Movement in deferred tax45 (122) (402)
Loan issued in exchange for services- (61) -
Movements in working capital
(Increase)/decrease in trade and other receivable
592 661 78
(Increase)/decrease in contract assets
32 (122) (67)
(Increase)/decrease in income taxes receivable(6) (1) (1)
Increase/(decrease) in trade and other payables(132) (669) (232)
Increase/(decrease) in provisions32 44 205
Increase/(decrease) in contract liabilities(316) 263 373
- -
Net cash inflow from operating activities(71)1,3082,215
- - -
14CONTINGENT LIABILITIES
There were no other material contingent liabilities or assets at balance date (December 2020: nil, June 2021: nil).
15SUBSEQUENT EVENTS AFTER BALANCE DATE
There are no other known events after balance date
The following balances are outstanding at the end of the reporting period in relation to both documented and undocumented loans with related parties.
Reconciliation of net profit to net cash flows from operations:
The results have the group in breach of their BNZ Loan covenants. Although the reporting is not required to the bank until after the release of these results, we
have communicated this early with the bank and are in the process of seeking a waiver.
iSell Pty Limited continues to defend the claim in relation to an outstanding debt owing to a former iSell employee. The company maintains its position that the
amount recorded is accurate and correct and no further liability exists.
Cash flows are included in the statement of cash flows on a gross basis and includes the GST component of cash flows arising from investing and financing
activities, which is recoverable from, or payable to, the taxation authority and is classified as part of operating cash flows.
16

Enprise Group Limited
Corporate Information
for the six months ended 31 December 2021
Company Information
New Zealand company number1562383
ARBN (Australian Registered Body Number)125 825 792
ABN (Australian Business Number)41 125 825 792
Contact DetailsNew ZealandPrincipal place of business
Level 2, 16 Hugo Johnston DriveLevel 2, 16 Hugo Johnston Drive
Penrose, Auckland 1061Penrose, Auckland 1061
PO Box 62262Phone: +64 9 829 5500
Sylvia Park
Auckland 1644Registered office
Phone: +64 9 829 5500Level 2, 16 Hugo Johnston Drive
Fax: +64 9 829 5501Penrose, Auckland 1061
Australia Principal place of business – Australia
Level 4, 122 Walker StreetLevel 4, 122 Walker Street
North SydneyNorth Sydney, NSW 2060
NSW 2060
Phone: +61 2 8355 7055
Fax: +61 2 8355 7045
Internet addresswww.enprisegroup.com
Emailinfo@enprisegroup.com
DirectorsGeorge Cooper
Chief Executive Officer
Lindsay Phillips
Chairman
Nicholas Paul
Non-executive Director
Ronald Baskind
Executive Director
Marisa FongNon-executive Director
Share RegisterLink Market Services Limited
Level 7, Zurich House
21 Queen Street
Auckland, New Zealand
Phone: +64 9 375 5990
Enprise Group Limited shares are listed on the NZX Market
AuditorRSM Hayes Audit
LawyerHudson Gavin Martin, Auckland, New Zealand
Chapman Tripp, Auckland, New Zealand
Principal BankersBank of New Zealand Limited, Auckland, New Zealand
17