HUGE GROUP LIMITED - Short-form announcement: Preliminary audited summarised condensed financial results for the year ended 28 Feb 2023

Short-form announcement: 
Preliminary audited summarised condensed financial results for the year ended 28 Feb 2023

HUGE GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2006/023587/06)
Share code: HUG ISIN: ZAE000102042
(“Huge Group” or “the Company”)

SHORT-FORM ANNOUNCEMENT:
PRELIMINARY AUDITED SUMMARISED CONDENSED FINANCIAL RESULTS FOR THE
YEAR ENDED 28 FEBRUARY 2023 AND AVAILABILITY OF INTEGRATED ANNUAL
REPORT

The board of directors of the Company (the Board) is pleased to present the
financial results (Financial Results) for the reporting period ended 28 February
2023.

SALIENT FEATURES

Huge Group is an investment entity in terms of International Financial Reporting
Standards (IFRS): IFRS 10. The performance measures relevant to the
Company’s financial results are:

                                             Financial year       Financial year
                                                     ended    ended 28 February
                                                28 February                 2022
                                                       2023           (Audited)
                                                  (Audited)
 Operating profit               Rands           R80 246 911         R517 643 139
 Headline earnings per share    cents                 46.38                58.81
 Earnings per share             cents                 46.38               299.85
 Net asset value per share      cents                943.85               896.75

DIVIDEND

No dividends will be declared for the year ended 28 February 2023 (FY2022:
Nil).

CHANGE IN INVESTMENT ENTITY STATUS AND EARNINGS

IFRS requires that an entity assesses and then annually reassesses whether it is
an investment entity. If facts or circumstances indicate changes to one or more
of the elements characteristic of an investment entity, the entity may be
required to change its basis of accounting.

Where an entity’s status changes to that of an investment entity, it does not
consolidate its subsidiaries, but rather measures its subsidiaries at fair value
through profit or loss. This change in accounting is applied prospectively, with
no adjustment to prior year comparatives. However, an investment entity
continues to consolidate subsidiaries that provide services related to the
investment entity’s investment activities (i.e. those wholly-owned subsidiaries
comprising Huge Group’s head office operations).

On 1 March 2021, Huge Group assessed its status as an entity and determined
that it exhibited the characteristics of an investment entity in terms of IFRS10.

With effect from 1 March 2021, the performance of Huge Group’s investment
portfolio is measured with reference to the fair value of each of its investments.
Accordingly, it no longer consolidates the performance and the assets and
liabilities of its subsidiary companies, other than Huge Management Company
Proprietary Limited.

As a result of Huge Group’s change in status in the prior year, operating profit
as well as earnings per share for the current reporting period are not
comparable to the prior reporting period.

AVAILABILITY OF INTEGRATED ANNUAL REPORT

The Company’s Integrated Annual Report, incorporating the audited financial
statements for the year ended 28 February 2023, is available on the
Company’s website at:
https://www.hugegroup.com/financials

The Company’s Integrated Annual Report will be issued to shareholders on
Wednesday, 31 May 2023.

SHORT-FORM ANNOUNCEMENT

This short form announcement is the responsibility of the Board and is only a
summary of the information contained in the full announcement (the Full
Announcement) and the Integrated Annual Report.

The Financial Results have been audited by the Huge Group’s auditor, Moore
Johannesburg Incorporated, who have expressed an unmodified audit
conclusion thereon. The audit report includes disclosure of key audit matters
relating to Huge Group. These matters are disclosed on pages 61 to 62 of Huge
Group’s consolidated annual financial statements for the year ended 28
February 2023, which is available on the Company’s website at:
https://www.hugegroup.com/financials

This short-form announcement does not contain full or complete details
pertaining to Huge Group’s results. Any investment decisions by investors
and/or shareholders should be based on a consideration of the Full
Announcement and the Integrated Annual Report, which may be
downloaded from the Company’s website at:
https://www.hugegroup.com/financials

which may also be viewed at the registered offices of the Company and the
Sponsor, at no charge, during office hours from the date of this announcement
for a period of 30 days. The Full Announcement is also available on the JSE’s
website at:
https://senspdf.jse.co.za/documents/2023/jse/isse/HUG/ye2023.pdf.


Registered office
Unit 23, 1 Melrose Boulevard, Melrose Arch, Johannesburg, 2057

Johannesburg
31 May 2023

Sponsor
Questco (Pty) Ltd

Date: 31-05-2023 05:02:00
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