Preliminary Full Year Results – 30 June 2022

AUCKLAND, 29 August, 2022. Hi-tech software and services investment company Enprise Group
(NZX: ENS) today reported unaudited revenue for the year ended 30 June 2022 of $18.7 million, up
from $16.1 million (up 16%).

Total comprehensive income for the year ended 30 June 2022 was a loss of $2.1 million (down $2.9
million from a profit of $0.8 million). This decline was due to several factors including;

• the need to significantly increase salaries months earlier than we were able to pass on price
increases to customers.
• costs in relation to the Kilimanjaro Consulting ‘One Company, One Team, One Brand’ which is
now completed. The board expects the additional synergies created under the single brand to
return the division to its previously strong profitability.
• that the iSell software development for the North American market has taken longer and been
more complex than was expected last year, therefore the revenue growth has been slower than
forecast.

The breach of the BNZ banking covenants will continue and the board intends to seek a further waiver.

Kilimanjaro Consulting

Kilimanjaro Consulting had recurring revenue of $3.9 million (up 17%) and contracted revenue of $3.3
million (up 25%) out of a total revenue of $17.6 million (up 16%).

The changes MYOB are purporting to undertake in respect of the MYOB Exo licensing will be
challenging if MYOB is successful in implementing these changes. These changes are being disputed
by Kilimanjaro (refer to announcement on 1 August 2022).


iSell

Annual recurring revenue (ARR) has increased to $1.04 million. Total revenue $1.09 million (up 26%).
Enprise currently owns 75% of iSell. During the year iSell achieved its first case study in the US this
year and has just received formal Avalara (US Sales Tax) certification, these are significant milestones
for ramping up entry into the US market.

Datagate

Enprise Group’s associate, Datagate Innovation Ltd (Datagate) grew its annual recurring revenue
(ARR) to over $2.4 million, an increase of 49%. Growth in the USA was 65%. Datagate continues to be
in high growth mode and is keeping its focus on growing revenue and market share. Enprise
participated in the convertible note round in December 2021, Enprise took up $0.5 million of the total
issue of $1.55 million.

Vadacom

Vadacom Holdings Ltd (Vadacom)’s recently released new cloud PBX phone system ‘Next Voice’
functionality continues to expand to support new and existing customers directly and through resellers.
As a result of an draft independent valuation of Vadacom, Enprise Group realised a $0.06 million
decrease in the carrying value of this investment in the period.

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 Kilimanjaro Consulting Pty Ltd and Kilimanjaro Consulting
Ltd, subsidiary iSell, joint venture Datagate Innovation, and a holding in Vadacom.
Kilimanjaro Consulting is MYOB’s number one partner in Australia and New Zealand. 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.

---

Enprise Group Limited
Unaudited Results Announcement
for the year ended 30 June 2022

Enprise Group Limited
Unaudited Consolidated Statement of Comprehensive Income
for the year ended 30 June 2022
30 June 202230 June 2021
$'000$'000
Revenue from contracts with customers18,74416,113
Government assistance- 753
Employee expense(15,057)(11,806)
Other operating costs(5,501)(4,431)
Other gains/(losses) - net32-
Operating profit/(loss)
(1,782)629
Equity earnings/(losses) from associates and joint ventures(556)(474)
Other gains/(losses) related to associates and joint ventures8344
Finance cost - net(90)(129)
Profit/(loss) before income tax
(2,420)370
Income tax benefit227402
Profit/(loss) for the period(2,193)772
Other Comprehensive Income
Items that may be reclassified to profit or loss
Foreign currency translation differences15538
Items that will not be reclassified to profit or loss
Changes in the fair value of investments through other comprehensive income(60)23
Total other comprehensive income/(loss) for the period, net of tax9561
Total comprehensive income/(loss) for the period
(2,098)833
Profit/(loss) for the period is attributable to:
Non-Controlling Interest(357)(326)
Owners of Enprise Group Limited
(1,836)1,098
(2,193)772
Total comprehensive income/(loss) for the period is attributable to
Non-Controlling Interest(357)(326)
Owners of Enprise Group Limited
(1,741)1,159
(2,098)833
Earnings per share from profit/(loss) for the period attributable to ordinary shareholders of the Enprise Group Limited
Basic and diluted earnings/(loss) per share (cents per share)(11.36) 6.85
2

Enprise Group Limited
Unaudited Consolidated Statement of Financial Position
as at 30 June 2022
30 June 202230 June 2021
$'000$'000
Current assets
Cash and cash equivalents
1,2162,806
Trade and other receivables
3,1902,821
Contract assets
831713
Current tax assets
- 1
Total current assets
5,2376,341
Non-current assets
Investments in associates, joint ventures
285833
Investments in other entities
627687
Staff receivables - non current
- 106
Property plant and equipment
406384
Intangible assets
11,17310,810
Right-of-use assets - non-current
1,3401,568
Deferred tax asset
2,1971,960
Loans to related parties - non current
7387
Other non-current assets
55254
Total non-current assets
16,65316,489
Total assets
21,89022,830
Current liabilities
Trade and other payables
2,9632,555
Provisions
1,6961,525
Contract liabilities
2,5822,362
Current tax liabilities
19-
Borrowings
85350
Lease liabilities
495572
Total current liabilities
8,6087,064
Non-current liabilities
Provisions - non-current
302181
Lease liabilities - non-current
9701,087
Deferred tax liability
656705
Total non-current liabilities
1,9281,973
Total liabilities
10,5369,037
Net assets
11,35413,793
Equity
Share capital
11,01011,010
Foreign exchange translation reserve
351196
Financial assets at FVOCI reserve
528588
Retained earnings / (accumulated losses)
(696)1,444
Equity attributable to the owners of Enprise Group Limited11,19313,238
Non-controlling interests
161555
Total equity
11,35413,793
- -
Total assets per share ($ per share)
1.35 1.41
Net tangible assets per share ($ per share)(0.01) 0.13
3

Enprise Group Limited
Unaudited Consolidated Statement of Changes in Equity
for the year ended 30 June 2022
Share capital
Foreign
exchange
translation
reserve
Financial
assets at
FVOCI
reserve
Retained
earnings /
(accumulated
losses)
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
- - - (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/(loss) 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
11,010 196 588 1,444 555 13,793
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 - - - 100 (37) 63
Total transactions with shareholders
- - - (304) (37) (341)
Comprehensive income
Loss for the period- - - (1,836) (357) (2,193)
Other comprehensive income/(loss)
- 155 (60) - - 95
Total comprehensive income/(loss) net of tax
- 155 (60) (1,836) (357) (2,098)
Balance at 30 June 2022
11,010 351 528 (696) 161 11,354
4

Enprise Group Limited
Unaudited Consolidated Statement of Cash Flows
for the year ended 30 June 2022
30 June 202230 June 2021
$'000$'000
Operating activities
Cash was provided from:
Receipts from customers
26,154 23,855
Government assistance
4 935
Interest received
1 2
26,15924,792
Cash was applied to:
Payments to suppliers & employees
26,163 22,445
Interest paid
122 132
Income tax paid
20 -
26,30522,577
Net cash inflow/(outflow) from operating activities(146) 2,215
Investing activities
Cash was provided from:
Loans repaid by staff-
13
Term deposits-
100
Share buy back from other entities-
62
Loans repaid by related parties
16 -
16 175
Cash was applied to:
Purchase of property, plant and equipment
181 190
Software development costs
305 272
Investment in equity accounted joint venture-
335
Convertible note
500
-
Purchase of business
325 18
Lending to third parties
- 5
1,311820
Net cash inflow/(outflow) from investing activities(1,295) (645)
Financing activities
Cash was provided from:
Proceeds from bank borrowings
1,000
-
Proceeds from issue of shares in iSell Pty Limited to non-controlling interests
136 146
1,136 146
Cash was applied to:
Dividends paid
404 378
Purchase of shares in iSell Pty Limited from non-controlling interests
74 576
Repayment of lease liabilities
612 656
Repayment of bank borrowings
188 441
Repayment of other borrowings
12 2
1,290 2,053
Net cash inflow/(outflow) from financing activities(154) (1,907)
Net increase/(decrease) in cash and cash equivalents held(1,595) (337)
Net foreign exchange differences
5 (26)
Cash and cash equivalents at beginning of the period2,806 3,169
Cash and cash equivalents at end of the period1,216 2,806
- -
5

Enprise Group Limited
Notes to Accompany the Unaudited Results Announcement
for the year ended 30 June 2022
1CHANGES IN ACCOUNTING POLICIES
(a)Changes in accounting policies
(b)Critical accounting judgements and estimates
2SEGMENT INFORMATION
(a)Operational performance - business segments
Revenue
Operating profit
30 June 202230 June 202130 June 202230 June 2021
$'000$'000$'000$'000
Kilimanjaro Consulting17,618 15,239 351 2,404
iSell1,093 865 (1,249) (1,003)
Corporate33 9 (884) (772)
- -
18,744 16,113 (1,782) 629
Equity earnings of associates and joint ventures(548) (130)
Net interest expense(90) (129)
- -
Profit/(loss) before taxation(2,420) 370
- -
Income Tax227 402
- -
Net profit/(loss) attributable to shareholders(2,193) 772
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 2021.
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 2022 year
include:
Impairment testing - goodwill and other intangible assets The group's intangible assets have been assessed by management and 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.
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.
An independent assessment of the fair value of iSell was conducted at 30 June 2022, for the purpose of considering the fair value less cost of disposal of the cash
generating unit. The Level 3 fair value estimate was higher than the carrying value of the iSell cash generating unit, and indicated a fair value which would indicate
no impairment, including allowance for costs of disposal and non-controlling interests share of goodwill.
At the date of this announcement the non-current assets within the Kilimanjaro Consulting division have been assessed by management and tested for impairment
based on allocation to the cash generating units on a value in use basis. This based on the current 2023 financial year budget and applies various assumptions
around revenue growth and discount rates in determining the future cash flows from each CGU over the next 5 years. Whilst the draft assessment has not
currently shown any impairment, further modelling is being undertaken to assess the impact of the MYOB Exo licence commission changes that Kilimanjaro are
currently challenging. Please refer to the announcement on 1 August 2022 regarding further details of the licence margin reduction and impact.
6

Enprise Group Limited
Notes to Accompany the Unaudited Results Announcement
for the year ended 30 June 2022
2SEGMENT INFORMATION (CONTINUED)
(b)Operational performance - Geographic segments
Revenue
Operating profit
30 June 202230 June 202130 June 202230 June 2021
$'000$'000$'000$'000
New Zealand6,066 4,517 41 434
Australia12,474 11,387 (1,659) (14)
EMEA*152 107 (155) 107
North America9 4 (9) 4
Asia43 98 - 98
- -
18,744 16,113 (1,782) 629
-
* Europe, Middle East and Africa
- -
(c)Interest, deprecation and amortisation
Interest revenue
Interest expense
30 June 202230 June 202130 June 202230 June 202130 June 202230 June 2021
$'000$'000$'000$'000$'000$'000
New Zealand22 4 92 72 292 194
Australia- 1 20 62 1,062 1,152
22 5 112 134 1,354 1,346
- #REF!#REF!#REF!#REF!
(d)Balance sheet informationNon Current Asset
Total assets
Total liabilities
30 June 202230 June 202130 June 202230 June 202130 June 202230 June 2021
$'000$'000$'000$'000$'000$'000
Kilimanjaro Consulting9,052 8,926 15,717 15,730 11,374 7,547
iSell3,867 3,835 4,150 4,699 625 1,134
Corporate912 1,520 4,645 2,226 1,158 181
13,831 14,281 24,512 22,655 13,157 8,862
Inter-segment elimination- - (2,622) 175 (2,622) 175
13,831 14,281 21,890 22,830 10,535 9,037
New Zealand3,746 3,804 9,502 6,643 5,236 2,667
Australia10,085 10,477 15,764 16,260 8,676 6,443
13,831 14,281 25,266 22,903 13,912 9,110
Inter-segment elimination- - (3,376) (73) (3,376) (73)
- -
13,831 14,281 21,890 22,830 10,536 9,037
- -
3REVENUE
(a)Revenue streams
30 June 202230 June 2021
$'000$'000
- -
Revenue from Enterprise software and licences
4,852 4,280
- -
Revenue from services and support
11,398 9,934
- -
Revenue from iSell
1,093 865
Revenue from hosting services
1,388 1,032
- -
Revenue from other fees
13 2
- - 18,744 16,113
Software and licencesServices and supportITQuoter RevenueExoHostedother fees
Depreciation and
amortisation expense
Non-current assets other than
financing and deferred tax
7

Enprise Group Limited
Notes to Accompany the Unaudited Results Announcement
for the year ended 30 June 2022
3REVENUE (CONTINUED)
(a)Revenue by geographical location
30 June 2022
$'000$'000$'000$'000$'000$'000
-
New Zealand
1,870 3,466 124 598 8 6,066
-
Australia
2,982 7,932 765 790 5 12,474
EMEA*
- - 152 - - 152
North America
- - 9 - - 9
Asia
- - 43 - - 43
- - 4,852 11,398 1,093 1,388 13 18,744
* Europe, Middle East and Africa
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
30 June 202230 June 2021
$'000$'000

Recurring revenue from Enterprise software licences
3,897 3,321

Contracted revenue from hosting and support agreements
3,325 2,645

Revenue from other services
10,396 9,273
17,618 15,239
- -
30 June 202230 June 2021
$'000$'000

Recurring revenue from iSell software licences
974 684

Revenue from other services
119 181
1,093 865
- -
30 June 202230 June 2021
$'000$'000

Revenue from services
33 9
33 9
Revenue from
hosting services
Kilimanjaro Consulting revenue
Revenue from
services and
support
Total
Revenue from
services and
support
Corporate revenue
Revenue from
hosting services
Revenue from
software and
licences
Revenue from
iSell
Revenue from
other fees
Revenue from
iSell
Total
Revenue from
software and
licences
iSell revenue
Revenue from
other fees
8

Enprise Group Limited
Notes to Accompany the Unaudited Results Announcement
for the year ended 30 June 2022
4EQUITY
(a)Share capital
Number of authorised sharesShare capital
Contributed equity - ordinary shares
30 June 202230 June 202130 June 202230 June 2021
sharesshares$'000$'000
Opening ordinary shares16,157,699 15,900,895 11,010 10,749
Issue of ordinary shares - Dividend reinvestment plan- 256,804 - 261
- - 16,157,699 16,157,699 11,010 11,010
(b)Dividends
30 June 202230 June 202130 June 202230 June 2021
cents per sharecents per share$'000$'000
Final dividend for the period ended 30 June 2020- 2.00 - 318
Interim dividend for the period ended 30 June 2021- 2.00 - 321
Final dividend for the period ended 30 June 20212.50 - 404 -
- - 2.50 4.00 404 639
5CASH FLOW RECONCILIATION
30 June 202230 June 2021
$'000$'000
Profit/(Loss) before tax
(2,420) 370
Adjustments for:
Depreciation on property plant and equipment
162 146
Loss on disposal of property plant and equipment
5 -
Depreciation on right-of-use assets
648 727
Amortisation on intangible assets
544 476
Net loss/(gain) on foreign exchange5 10
Share of loss from equity accounted investments548 130
Movements in working capital
(Increase)/decrease in trade and other receivable
(326) 78
(Increase)/decrease in contract assets
(100) (67)
(Increase)/decrease in income taxes receivable18 (1)
Increase/(decrease) in trade and other payables357 (232)
Increase/(decrease) in provisions245 205
Increase/(decrease) in contract liabilities168 373
####
Net cash inflow/(outflow) from operating activities(146)2,215
- -
Reconciliation of net profit to net cash flows from operations:
On 23 October 2020, 150,693 shares were issued under the dividend reinvestment plan at $1.0378 per share. On 16 March 2021, 106,111 shares were issued
under the dividend reinvestment plan at $0.9883 per share.
9

---

Enprise Group Limited
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 12 months to 30 June 2022
Previous Reporting Period 12 months to 30 June 2021
Currency New Zealand Dollar
Amount (000s) Percentage change
Revenue from continuing
operations
$18,744 16%
Total Revenue $18,744 16%
Net profit/(loss) from
continuing operations
$(2,420) -754%
Total net profit/(loss) $(2,193) -384%
Interim/Final Dividend
Amount per Quoted Equity
Security
No final dividend will be paid
Imputed amount per Quoted
Equity Security
Not applicable
Record Date Not applicable
Dividend Payment Date Not applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$(0.01) $0.13
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 027 561 5501
Contact email address elliot@enprisegroup.com
Date of release through MAP

29 August 2022

Unaudited financial statements accompany this announcement.