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The condensed unaudited consolidated interim financial statements are prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (“IASB”), IAS 34 – Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, Financial Pronouncements as issued by Financial Reporting Standards Council and the requirements of the South African Companies Act, as amended. The accounting policies applied in the preparation of these interim financial statements are in terms of International Financial Reporting Standards (“IFRS”) and are consistent with those applied in the previous annual financial statements.
As at 30 November 2025, the Group reported an excess of current liabilities over current assets of R363 million. The Directors have considered the Group’s forecasts and projections, which indicate that the Group will generate sufficient cash flows from operations and are satisfied that the Group will be able to operate within its existing funding facilities for the foreseeable future and maintain adequate liquidity to settle its obligations as they fall due.
The Directors have not identified any material uncertainties that may cast significant doubt on the Group’s ability to continue as a going concern, nor do they consider there to be any material risk of breaching its funding covenants.
Accordingly, the interim financial statements have therefore been prepared on the going concern basis.
The Group has implemented the latest accounting pronouncements from the IASB, that are effective to the Group from 1 June 2025, none of which had any material impact on the Group’s financial results for the period. The Group has not early adopted any upcoming accounting pronouncements, which are not yet effective, and the Group is not expecting these pronouncements to have a material impact on the financial results of the Group. Details on changes in accounting policies will be disclosed in the Group’s consolidated financial statements for the year ending 31 May 2026.
We aim to provide stakeholders with the same additional information that management uses to evaluate the performance of the Group’s operations. Accordingly, we make reference to operating profit before depreciation, amortisation and impairment charges (EBITDA).
In addition, the Group applies core net profit and core headline earnings as non-IFRS measures in evaluating the Group’s performance. This supplements the IFRS Accounting Standards measures. Core net profit is calculated by adjusting net profit for the period with the amortisation of intangible assets that arise as a consequence of the purchase price allocations completed in terms of IFRS 3 – Business Combinations. Core headline earnings are calculated by adjusting core net profit with the headline earnings adjustments required by SAICA Circular 1/2023. A reconciliation between profit, core profit for the period and core headline earnings is presented in note 2 (Share performance).
The results for the period ended 30 November 2025 have not been reviewed or audited by the Group's auditors.
