Valuation Update With 7 Day Price Move • May 21
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to R1.01, the stock trades at a trailing P/E ratio of 22.5x. Average trailing P/E is 8x in the Telecom industry in Africa. Total returns to shareholders of 44% over the past three years. Duyuru • Mar 16
Caxton and CTP Publishers and Printers Limited (JSE:CAT) made an offer to acquire remaining stake in Cognition Holdings Limited (JSE:CGN) for ZAR 60 million. Caxton and CTP Publishers and Printers Limited (JSE:CAT) made an offer to acquire remaining stake in Cognition Holdings Limited (JSE:CGN) for ZAR 60 million on March 14, 2024. The consideration in terms of the offer is ZAR 1.07 per offer share payable in cash. The maximum scheme consideration will be ZAR 60.05 million. The offeror has confirmed to the company that sufficient cash resources are available for the payment of the scheme consideration in terms of the scheme. The scheme will be subject to the fulfilment of the following conditions precedent by June 30, 2024, or such later date as the offeror and the company may agree to in writing, approval of the scheme by the requisite majority of Cognition shareholders, the approval and the implementation of such resolution by the court as contemplated in section 115(3)(a) of the Act, expert having prepared and submitted a fair and reasonable opinion to the independent board and independent board having resolved to recommend acceptance of the scheme to the Cognition shareholders. The offeror confirms that it presently owns or controls 173.14 million ordinary shares in the Cognition , constituting 75.52% of its issued share capital. Fluxmans Attorneys acted as legal advisor and Bdo South Africa Incorporated acted as accountant to Cognition holdings Limited. Reported Earnings • Feb 19
First half 2024 earnings released: EPS: R0.016 (vs R0.024 in 1H 2023) First half 2024 results: EPS: R0.016 (down from R0.024 in 1H 2023). Revenue: R37.4m (down 8.6% from 1H 2023). Net income: R3.95m (down 29% from 1H 2023). Profit margin: 11% (down from 14% in 1H 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 42% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Duyuru • Feb 13
Cognition Holdings Limited Provides Earnings Guidance for the Six Months Ended 31 December 2023 Cognition Holdings Limited provided earnings guidance for the six months ended 31 December 2023. For the period, the company expects Headline earnings per share are expected to be between 2.41 and 2.55 cents per share, representing an increase of between 260% and 280% as compared to the headline earnings of 0.67 cents per share reported for the six months ended 31 December 2022. Earnings per share are expected to be between a loss of 1.18 cents per share and a profit of 4.4 cents per share, as compared to the earnings of 27.87 cents per share reported for the six months ended 31 December 2022. Reported Earnings • Oct 18
Full year 2023 earnings released: EPS: R0.045 (vs R0.067 loss in FY 2022) Full year 2023 results: EPS: R0.045 (up from R0.067 loss in FY 2022). Revenue: R79.2m (down 14% from FY 2022). Net income: R10.4m (up R25.9m from FY 2022). Profit margin: 13% (up from net loss in FY 2022). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 14% per year whereas the company’s share price has increased by 18% per year. Duyuru • Oct 13
Cognition Holdings Limited, Annual General Meeting, Nov 17, 2023 Cognition Holdings Limited, Annual General Meeting, Nov 17, 2023, at 10:00 South Africa Standard Time. Location: Caxton House, 368 Jan Smuts Avenue, Craighall Park, Johannesburg Joannesburg South Africa New Risk • Oct 10
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of South African stocks, typically moving 11% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (11% average weekly change). Earnings have declined by 56% per year over the past 5 years. Market cap is less than US$10m (R185.7m market cap, or US$9.61m). Minor Risk Revenue is less than US$5m (R79m revenue, or US$4.1m). Duyuru • Aug 29
Cognition Holdings Limited Provides Earnings Guidance for the Year Ended 30 June 2023 Cognition Holdings Limited provided earnings guidance for the year ended 30 June 2023. For the period, Headline earnings per share is expected to be between 2.68 and 2.78 cents per share, as compared to the headline earnings of 0.46 cents per share reported for the year ended 30 June 2022. The improvement in headline earnings per share is the result of cost rationalisation in the operations of the company. Earnings per share is expected to be between 28.10 and 32.53 cents per share, compared to the loss of 22.15 cents per share reported for the year ended 30 June 2022. New Risk • Aug 02
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended December 2022. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 68% per year over the past 5 years. Minor Risks Latest financial reports are more than 6 months old (reported December 2022 fiscal period end). Share price has been volatile over the past 3 months (8.4% average weekly change). Significant insider selling over the past 3 months (R1.4m sold). Market cap is less than US$100m (R240.7m market cap, or US$13.0m). Duyuru • Jun 30
Cognition Holdings Limited Announces Retirement of Graham Groenewaldt, Executive Director Cognition Holdings Limited announced that Mr. Graham Groenewaldt, an executive director of the Company, has reached retirement age and, as a result, will resign as a director. His resignation will take effect from 30 June 2023. though Graham will no longer serve as a director of the Company, he will remain in his role as a director of the Company's subsidiaries, FoneWorx Proprietary Limited and BMI Research Proprietary Limited, where he will still be operationally active and will focus on grooming a successor to transition seamlessly into his role. Reported Earnings • Mar 09
First half 2023 earnings released First half 2023 results: Revenue: R40.9m (down 66% from 1H 2022). Net income: R4.45m (up R59.0m from 1H 2022). Profit margin: 11% (up from net loss in 1H 2022). Revenue is expected to decline by 35% p.a. on average during the next 2 years, while revenues in the Telecom industry in Africa are expected to grow by 4.0%. Board Change • Nov 16
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 4 independent directors. 5 non-independent directors. Independent Non-Executive Director Steven Naude was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Duyuru • Oct 01
Cognition Holdings Limited, Annual General Meeting, Nov 04, 2022 Cognition Holdings Limited, Annual General Meeting, Nov 04, 2022, at 10:00 South Africa Standard Time. Location: at Cognition House, 84 Bram Fischer Drive Randburg South Africa Reported Earnings • Sep 04
Full year 2022 earnings released: R0.22 loss per share (vs R0.009 profit in FY 2021) Full year 2022 results: R0.22 loss per share (down from R0.009 profit in FY 2021). Revenue: R240.9m (up 4.5% from FY 2021). Net loss: R50.8m (down R52.9m from profit in FY 2021). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 104 percentage points per year, which is a significant difference in performance. Board Change • Apr 27
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 4 independent directors. 5 non-independent directors. Independent Non-Executive Director Steven Naude was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Reported Earnings • Mar 09
First half 2022 earnings: Revenues and EPS in line with analyst expectations First half 2022 results: R0.24 loss per share (down from R0.029 profit in 1H 2021). Revenue: R120.6m (down 1.6% from 1H 2021). Net loss: R52.4m (down R59.1m from profit in 1H 2021). Revenue was in line with analyst estimates. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 98 percentage points per year, which is a significant difference in performance. Board Change • Feb 18
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 4 independent directors. 5 non-independent directors. Independent Non-Executive Director Steven Naude was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Board Change • Feb 18
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 4 independent directors. 5 non-independent directors. Independent Non-Executive Director Steven Naude was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Board Change • Feb 18
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 4 independent directors. 5 non-independent directors. Independent Non-Executive Director Steven Naude was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Duyuru • Feb 03
Cognition Holdings Limited Announces Resignation of Stefan Kleynhans as Company Secretary, Effective March 31, 2022 Cognition Holdings Limited announced that Stefan Kleynhans has resigned as company secretary of the company with effect from March 31, 2022, to pursue other interests. The company has commenced the process of identifying Stefan's successor and shareholders will be advised of the appointment of a new company secretary in due course. Executive Departure • Dec 01
Independent Non-Executive Director Roger Matthew Pitt has left the company On the 26th of November, Roger Matthew Pitt's tenure as Independent Non-Executive Director ended after 8.2 years in the role. We don't have any record of a personal shareholding under Roger Matthew's name. A total of 5 executives have left over the last 12 months. Executive Departure • Dec 01
Independent Non-Executive Director Gaurang Mooney has left the company On the 26th of November, Gaurang Mooney's tenure as Independent Non-Executive Director ended. We don't have any record of a personal shareholding under Gaurang's name. A total of 5 executives have left over the last 12 months. Executive Departure • Dec 01
Deputy Chairman & Lead Independent Director Ashvin Mancha has left the company On the 26th of November, Ashvin Mancha's tenure as Deputy Chairman & Lead Independent Director ended. We don't have any record of a personal shareholding under Ashvin's name. A total of 5 executives have left over the last 12 months. Reported Earnings • Sep 02
Full year 2021 earnings released: EPS R0.009 (vs R0.079 loss in FY 2020) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2021 results: Revenue: R230.6m (down 12% from FY 2020). Net income: R2.06m (up R20.4m from FY 2020). Profit margin: 0.9% (up from net loss in FY 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 94 percentage points per year, which is a significant difference in performance. Executive Departure • Aug 12
Independent Non-Executive Director Trevor Cabot Ahier has left the company On the 5th of August, Trevor Cabot Ahier's tenure as Independent Non-Executive Director ended after 3.3 years in the role. As of March 2021, Trevor still personally held 3.91m shares (R2.9m worth at the time). Trevor is the only executive to leave the company over the last 12 months. Duyuru • Mar 14
Cognition Holdings Limited Announces Board Changes The board of directors of Cognition hereby notifies its shareholders that the independent non-executive Chairman of the company, Mr. Ashvin Mancha will step down as Chairman of the company with effect from 12 March 2021, and will be succeeded by Mr. Paul Jenkins, who is currently a non-executive director of the company. Mr. Jenkins also serves as the independent non-executive Chairman of Caxton and CTP Publishers and Printers Limited, the controlling shareholder of Cognition. Mr. Mancha will assume the position as Deputy Chairman and Lead Independent Director of the Company and will continue to be Chairman of the Remuneration Committee. Is New 90 Day High Low • Feb 01
New 90-day high: R0.75 The company is up 32% from its price of R0.57 on 03 November 2020. The South African market is up 16% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Telecom industry, which is up 4.0% over the same period. Is New 90 Day High Low • Oct 08
New 90-day low: R0.51 The company is down 40% from its price of R0.85 on 10 July 2020. The South African market is down 4.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Telecom industry, which is down 3.0% over the same period. Reported Earnings • Oct 06
Full year earnings released - R0.079 loss per share Over the last 12 months the company has reported total losses of R18.4m, with earnings decreasing by R31.3m from the prior year. Total revenue was R263.2m over the last 12 months, up 22% from the prior year. Reported Earnings • Sep 23
Full year earnings released - R0.079 loss per share Over the last 12 months the company has reported total losses of R18.4m, with earnings decreasing by R33.0m from the prior year. Total revenue was R263.2m over the last 12 months, up 22% from the prior year. Duyuru • Sep 19
Cognition Holdings Limited Resolves Not to Declare A Dividend for the Financial Year Ended 30 June 2020 Cognition Holdings Limited's Board has resolved not to declare a dividend for the financial year ended 30 June 2020 (2019: 10 cents per share). Duyuru • Sep 09
Cognition Holdings Limited to Report Fiscal Year 2020 Results on Sep 17, 2020 Cognition Holdings Limited announced that they will report fiscal year 2020 results on Sep 17, 2020