Huge Group Limited (JSE:HUG) News - Reviewed Condensed Consolidated Results for the six months ended 31 August 2021

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


REVIEWED CONDENSED CONSOLIDATED RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST
2021


The board of directors of the Company (“the Board”) is pleased to present the reviewed
condensed consolidated interim results for the six months ended 31 August 2021 (the
“Interim Results”).

                                             6 months          6 months       Financial year
                                                ended             ended                ended
                                            31 August         31 August          29 February
                                                 2021              2020                 2021
                                           (Reviewed)       (Unaudited)            (Audited)
 Earnings per share    cents                   273.31              6.92                23.47
 Headline earnings     cents
 per share                                      34.63              6.57                27.67
 Operating profit      Rand ‘000              493 943            27 683               65 877
 Net asset value       cents
 per share                                     869.45            518.61               594.90

No dividends have been declared or paid for the six months ended 31 August 2021.

Huge’s strategy is centered on acquiring and expanding its portfolio of companies,
generating returns from the receipt of interest and dividends as well as the disposal of
investments at a profit. Its approach is that of investment entity as opposed to
consolidated group.

Huge’s vision, strategy, and policies (particularly its investment policy) are those of an
investment entity. Its structure, the skills, background, and experience of its directors
(regarding deal-making and mergers and acquisitions) and its recent conduct
(particularly its attempts to acquire a shareholding in Adapt IT Holdings Limited) no longer
justified treating Huge as a consolidated group.

International Financial Reporting Standard (IFRS) 10 is prescriptive. If an entity meets the
definition of an investment entity it must report on this basis. These interim results will be
the first time Huge does so and it is informed by the change in Huge’s strategy.

Huge’s adoption of this accounting treatment has been confirmed by an independent
expert and the auditors. In accordance with IFRS10 (B101), when an entity becomes an
investment entity, it shall cease to consolidate its subsidiaries at the date of the change
in status, except for any subsidiary that shall continue to be consolidated in accordance
with paragraph 32. The investment entity shall apply the requirements of paragraph 25
and 26 (Loss of control) to those subsidiaries that it ceases to consolidate as though the
investment entity had lost control of those subsidiaries at that date. The only entity that is
consolidated under Huge is Huge Management Proprietary Limited, the entity that
provides a treasury function to Huge’s underlying investee activities.

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 released on SENS on 24 November
2021 (“the Full Announcement”).

This short-form announcement does not contain full or complete details pertaining to
Huge’s results. Any investment decisions by investors and/or shareholders should
therefore be based on consideration of the Full Announcement which may be
downloaded from Huge Group’s website at:

www.hugegroup.com/huge-group-unlocking-business-opportunity-financials/

and may be viewed at the registered offices of the Company and the Sponsor, at no
charge, during office hours for a period of 30 days from the date of this announcement.

The Full Announcement is also available on the JSE’s website at
https://senspdf.jse.co.za/documents/2021/jse/isse/HUG/HY2022.pdf.

Registered office
Unit 6, 1 Melrose Boulevard, Melrose Arch, Johannesburg, 2057

Johannesburg
24 November 2021

JSE Sponsor
Questco Corporate Advisory Proprietary Limited

Date: 24-11-2021 04:15:00
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