ISA Holdings Limited
Incorporated in the Republic of South Africa
(Registration number 1998/009608/06)
Share code: ISA
ISIN: ZAE000067344
(“ISA” or “the Company”)

SHORT-FORM UNAUDITED CONDENSED RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST
2022 AND CASH DIVIDEND DECLARATION


                                            Unaudited    Unaudited     Audited
                                           six months   six months        year
                                                ended        ended       ended
                                            31 Aug 22    31 Aug 21   28 Feb 22
                                  Change        R'000        R'000       R'000
Highlights from Statement
of Comprehensive Income

Turnover                              9%       34,715       31,810      74,743
Profit before
other income and expenses             4%       18,973       18,264      39,882
Profit after tax                     40%        9,389        6,693      16,354
Earnings per share (cents)           40%          6.0          4.3        10.5


Highlights from Statement of
Financial Position

Total assets                        -21%       64,995       82,156      84,307
Cash and cash equivalents           -31%       33,736       48,819      47,345
Equity                              -15%       54,466       64,318      70,348
Total liabilities                   -41%       10,531       17,838      13,959


Dividends and distribution
Ordinary dividend per share
declared for the period (cents)      40%          6.0          4.3        10.5
Ordinary dividend per share
Paid during the period (cents)       88%          6.2          3.3          7.6
Special dividend per share
Paid during the period (cents)     100%         10.0             -            -


Net asset value per share
at end of period (cents)            -15%         34.9         41.2        45.1
Headline earnings per
share (cents)*                       40%          6.0          4.3        10.5
Diluted headline earnings per
share (cents)*                       40%          6.0          4.3        10.5


* There have been no reconciling items that would result in a change to the
  Headline earnings per share and the Diluted headline earnings per share.

Operational Review

I am pleased to present our results for the six months ended 31 August 2022
("the current reporting period"), which continue to be underpinned by a high
portion of recurring revenue, a robust balance sheet and strong cash flows.
Despite the challenging trading conditions in which we operate, together with
the continued pressure on the local economy, overall performance remains
satisfactory.
Turnover increased by 9% during the current reporting period to R34.7 million
compared to the previous corresponding reporting period (“the prior reporting
period”), of which 92% is subscription derived and includes a healthy mix of
products, subscriptions and our Managed Security Service offerings that feature
MSS Pulse, our internally developed security infrastructure management and
monitoring platform. The high proportion of subscription derived turnover in
the current reporting period is indicative of the trend in terms of which
customers are showing a preference for subscribing to consumption-based security
solutions which offer a heightened level of flexibility and scalability that is
difficult to achieve in the traditional procurement model where companies would
purchase hardware and software assets complemented with an array of value-added
services offered by the local reseller community. This trend is likely to
continue for the foreseeable future and we anticipate maintaining a strong
proportion of subscription derived turnover in our revenue mix.

Profit before other income and expenses increased by 4% during the current
reporting period to R18.9 million, representing a gross margin of 55% compared
to 57% in the prior reporting period. This moderate reduction in gross margin
is due to the increased proportion of revenue from lower-margin products and
subscription sales recognised during the current reporting period.

Operating expenditure including the revaluation of foreign cash balances
increased by 8% to R11.7 million compared to R10.8 million in the prior reporting
period.

Most notable and significant during this reporting period is the spectacular
increase in our share of profits from DataProof, our equity-accounted
investment, which grew to R3.5 million in the current reporting period from
R603 000 in the prior reporting period. DataProof has performed exceptionally
well in both of its main operating areas, with sizeable wins in their highly
specialised and profitable cybersecurity business unit, and substantial
improvement in output and productivity from their records management team.

Total comprehensive income attributable to equity shareholders for the current
reporting period increased to R9.4 million from R6.7 million in the prior
reporting period, representing a pleasing 40% increase in headline and earnings
per share to 6.0 cents from 4.3 cents in the prior reporting period.

Property, plant and equipment increased by 40% in the current reporting period
to R13.3 million compared to R9.5 million in the prior reporting period, which
is largely a result of the fair value revaluation adjustment to our property
that was implemented towards the end of the last financial year.

Trade and other receivables decreased by 41% and trade payables decreased by
46% at the close of the current reporting period, which was largely as a factor
of deal and creditor settlement timing as opposed to any fundamental change in
cash management practices of the business. Cash and cash equivalents decreased
by 31% to R33.7 million in the current reporting period, from R48.8 million in
the prior reporting period, this after the final and special dividend of R25.3
million was paid to shareholders during the current reporting period. Of this
cash reserve, 54% is held in hard currencies (Dollars and Pounds) with the
balance held in Rands.

Dividend Declaration
I am pleased to announce that the board of directors of ISA (“the board”) has
declared an interim dividend to shareholders for the six months ended 31 August
2022 of 6.0 cents per share, which will be subject to the dividend tax
legislation.

The salient dates will be as follows:
Declaration date                   Friday, 11 November 2022
Last day to trade                 Tuesday, 6 December 2022
Shares trade ex-dividend        Wednesday, 7 December 2022
Record date                        Friday, 9 December 2022
Payment date                       Monday, 12 December 2022
Share certificates may not be dematerialised or rematerialised between
Wednesday, 7 December 2022 and Friday, 9 December 2022, both days inclusive.

In terms of the dividend tax legislation, effective 1 April 2012, the following
additional information is disclosed:

-   This is a dividend as defined in the Income Tax Act, 1962, and is payable
    from income reserves.
-   The South African dividend tax (“DT”) rate is 20%.
-   The DT to be withheld by the Company in respect of the ordinary dividend
    amounts to 1.20 cents per share.
-   The net ordinary dividend payable to shareholders who are not exempt from
    DT is therefore 4.80 cents per share, while a gross ordinary dividend
    of 6.0 cents per share is payable to those shareholders who are exempt
    from DT.
-   The issued share capital of the Company at the declaration date comprises
    170 592 593 ordinary shares.
-   The Company’s income tax reference number is 9340/150/71/4.

SHORT-FORM ANNOUNCEMENT

This short-form announcement is the responsibility of the directors of the
Company. It contains only a summary of the information in the full announcement
(“Full Announcement”) and does not contain full or complete details. Any
investment decisions by investors or shareholders should be based on the
consideration of the Full Announcement. The Full Announcement is available at:
https://senspdf.jse.co.za/documents/2022/jse/isse/isa/interim22.pdf

and is also published on the Company’s website at
https://www.isa.co.za/sens/SENS_20221111_01.pdf

Both the short-form announcement and the Full Announcement are also available
for inspection at the registered offices of ISA and the Designated Adviser,
Merchantec Capital, during business hours, and copies may be obtained at no
cost on request from the Company Secretary who is contactable on
+27 11 325 6363 or isa@acorim.co.za.

SPECIAL THANKS
On behalf of the board, I would like to take this opportunity to thank the ISA
team for their continued dedication and hard work. My appreciation is also
extended to my colleagues on the board for their wise counsel and valuable
input, as well as to all stakeholders, customers and vendors for their support.

For and on behalf of the board,

Clifford Katz
Chief Executive Officer

Johannesburg
11 November 2022

Directors: CS Katz (Chief Executive Officer), PJG Green (Chief Technical
Officer), P Mogoboya (Financial Director), AJ Naidoo#, C. Pillay#, DC
Seaton*, N Maphothi*, O Seku*(Chairperson)
# Non-executive
* Independent non-executive

Designated Adviser: Merchantec Capital

www.isaholdings.co.za