30 June 2023 Annual Report

Revenue $20.751M (Up 10.7%)
Operating loss $2,513K (2022 Loss $1,782K)
Loss for the period $10,752K (2022 Loss $2,193K)
Cash at bank $229K (2022 $1,216K)
Shareholders Funds $1,446K (2022 $11,354K)

Review of operations and outlook

Kilimanjaro Consulting

The mutually acceptable resolution of the MYOB dispute brings to a close a two-year period of uncertainty for Kilimanjaro as announced to the NZX on 28 September 2023 (Note 25 (b)). This gives Kilimanjaro clear sky to grow and prosper. While the past year has been challenging from a profitability perspective, the business still grew revenue by 11% (last year 16%) to $19.501m for the financial year. The growth in contracted revenues was 25% (last year 20.5%).

Recurring Revenue $4.481M (2022 $3.897M)
Contracted Revenue $4.171M (2022 $3.325M)

The dispute had the benefit of cementing the already strong culture of the organisation, the Board expresses its gratitude to shareholders, management, team members and clients for their unwavering support that enabled us to get to this point. The business has a number of revenue streams, but the products are essentially MYOB Enterprise solutions. The MYOB Advanced product is a localised version of the Acumatica Business Management Platform. The product is widely recognised internationally as the best in its class. MYOB is marketing and promoting it strongly, and as it gains traction in the Australian and New Zealand markets, Kilimanjaro will undoubtedly benefit.

Increased competition and consolidation are expected within the partner channel, as the Acumatica product gains popularity. Competition is also being experienced from MYOB themselves, through their direct channel. Kilimanjaro's unique position in the market and the premium pricing model allows it to focus on the larger, more complex implementations. Kilimanjaro's large base of existing Exo users remains core to its strategies. Kilimanjaro aims to continue to provide exceptional service to these Exo clients for at least the next decade. A new initiative will identify clients that wish to move to the cloud, and a separate team will manage the implementations of those Exo clients transitioning from Exo to MYOB Advanced (Acumatica).

iSell

Annual recurring revenue (ARR) increased to $1.22 million (up 18%) and total revenue to $1.2 million (up 10%). Enprise currently owns 75% of iSell. During the year iSell completed the integration to Halo PSA which has increased its addressable market. On 25 August 2023, iSell opened a rights issue which will raise AU$900,000 of which AU$600,000 is Enprise converting its existing loan and AU$300,000 new funds from other iSell shareholders. This will be used to support sales growth as iSell nears completion of development work on the latest version of its software.

Datagate

Datagate Innovation Ltd (Datagate) grew its annual recurring revenue (ARR) to over $3.3 million, an increase of 35%. Datagate continues to be in high growth mode and is keeping its focus on growing revenue and market share. Datagate is forecasting to reach break-even in the last quarter of the 2023 calendar year.

Vadacom

Vadacom Holdings Ltd (Vadacom)’s ARR and contracted revenue was $2.32 million for the year ended 31 March 2023. The cloud PBX phone system ‘Next Voice’ functionality continues to expand to support new and existing customers directly and through resellers. As a result of a draft independent valuation of Vadacom, Enprise Group realised a $0.175 million decrease in the carrying value of this investment in the period.

Ends

Elliot Cooper
Chief Executive Officer
0275615501

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Announcement PDF