Afinitas : Interim Financial Statements for the 6 months ended 30 June 2020

INTERIM FINANCIAL STATEMENTS

FOR THE 6 MONTHS ENDED 30 JUNE 2020

The Directors of Afinitas Limited wish to announce results for the 6 months	Africa Events Limited (AEL), a 50% owned event management company focused on	At this stage it is too early to determine the impact of Covid-19 on the operations of
ended 30 June 2020. The operating entities within the Afinitas Group comprise	promoting trade and investment into and with Africa. Africa Events Limited was	ICECAP Limited. The impact of Covid 19 meant that our key income generator AEL was
Africa Events Limited and Adventis Limited. In addition, Afinitas holds a 9.6% stake	preparing to host its largest ever AFSIC - Investing in Africa event in May 2020 however	unable to hold its flagship event AFSIC 2020 causing revenue for the 6 month period
in Icecap Trust Holdings Limited. Adventis Limited (Adventis), a 66% owned specialist	the arrival of Covid-19 meant that the event was unable to be held in 2020 and has been	compared to the same period the year before to fall from $1 039,466 to $19 424 a 98%
investment management company focusing on the African continent. The Adventis	postponed to May 2021. In prior years the event had gained considerable momentum,	decrease of revenue, and an increase in the loss for the 6 month period from $159k
investment team includes some of the most experienced and successful investment	and is increasingly recognised as Africa's investment event, and a major conduit of	to $987k. The Covid-19 outbreak has had a disappointing impact on the performance
managers in Africa. The company is looking to offer pan African equity and income funds	investment into Africa. We were also unable to host any investor roadshows in Africa	of the Group. The impact will continue to be felt by the Group throughout 2021. The
to investors interested in increasing their exposure to Africa, one of the fastest growing	during the year. As disclosed in the Business Update dated 06th May 2020, the arrival	board is looking at strategic options to keep our costs as low as possible during these
parts of the world economically. Our belief is that African debt and equity products	of Covid-19 had an immediate impact on Ethiopia Investments Limited (EIL). Our focus	uncertain times while identifying new business opportunities that may arise because
are looking increasingly attractive from both a valuation and risk perspective relative	had been on the development of EQOS Services, the company's majority owned BPO	of the global pandemic.
to alternative investments in the developed world. The management will continue	Business. Prior to Covid-19 EQOS had been showing signs of growth in business income,
to focus on growing the Adventis Africa Enhanced Income Strategy and the Adventis	however when Covid-19 hit worldwide business development expenditure plans were
Africa Equity Strategy. Within Adventis, a large amount of time during the year was	put on hold, and a number of our most important clients did not continue to utilise	Lesang Magang	Rupert McCammon
necessarily spent on obtaining the various regulatory approvals needed in order to	EQOS Services. In addition, our team in Addis was unable to finish projects that it had	Board Chairman	Managing Director
market a wider range of products. These approvals are now in place allowing marketing	ongoing within Ethiopia as they were no longer able to access clients' offices due to the
to commence in earnest. Many additional initiatives, apart from fund strategies, are	lockdown. As a result, a difficult decision was taken to close the EQOS Services company.
being examined each of which could prove attractive to global investors. Adventis	The Group will exit Ethiopia as a result. Icecap Trust Holdings Limited (Icecap). Afinitas	16 September 2020
was in the midst of encouraging discussions regarding potential investment into its	has a 9.6% stake in Icecap, a company based in Jersey that provides trust, company and
portfolio of Africa focused funds. These discussions were put on hold at the start of the	administration services. The company is in the early stages of development.
Covid-19 outbreak. As business confidence starts to return to the global economy, we
expect these discussions to restart.

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME	STATEMENT OF FINANCIAL POSITION
FOR THE PERIOD ENDED 30 JUNE 2020	AS AT 30 JUNE 2020
Group	Group

Figures in US Dollars	6 months ended	6 months ended	12 months ended
	30 June 2020	30 June 2019	December 2019
	(Reviewed )	(Reviewed )	(Audited )

Figures in US Dollars	6 months ended	6 months ended	12 months ended
	30 June 2020	30 June 2019	31 December 2019
	(Reviewed )	(Reviewed )	(Audited )

Revenue

Other operating income

Other operating (losses)/gains

Other operating expenses

Operating Loss

Finance income

Finance costs

Income from equity accounted investments

Profit (Loss) for the 6 months before taxation

Taxation

Loss from continuing operations

Discontinued operations

Loss from discontinued operations

Loss for the period

Other Comprehensive Income:

Items that will not be reclassified to profit or loss:

Loss on fair value of investments in equity instruments at fair value through other comprehensive income

Total items that will not be reclassified to profit or loss

Items that may be reclassified to profit or loss: Exchange differences on translating foreign operations:

Share of comprehensive income of equity accounted investments Total items that may be reclassified to profit or loss

Total Comprehensive Income (Loss) for the 6 months

Loss attributable to:

Owners of the parent

Non-controlling interest

Owners of the parent:

From continuing operations

From discontinued operations

Non-controlling interest:

From continuing operations

From discontinued operations

Total Comprehensive Income (Loss) attributable to: Owners of the parent

Non-controlling interest

Earnings per share

Per share information

Basic earnings (loss) per share (cents)

Diluted earnings (loss) per share (cents)

From continuing operations

19,424	1,039,466	1,043,122
17,554	18,344	17,249
(199,746 )	873	(6,562 )
(642,285 )	(1,188,407 )	(1,757,336 )
(805,053 )	(129,724 )	(703,527 )
13,463	36,206	78,530
-	(1,563 )	(6,633 )
(1,364 )	-	(946 )
(792,954 )	(95,081 )	(632,576 )
-	(1,463 )	-
(792,954 )	(96,544 )	(632,576 )
(193,711 )	(62,433 )	(108,466 )
(986,665 )	(158,977 )	(741,042 )

-	-	(301,542 )
-	-	(301,542)
65,451	(28,842 )	(56,306)
1,505	-	832
66,956	(28,842 )	(55,474)
(919,709 )	(187,819 )	(1,098,058)
(717,321 )	(315,466 )	(819,830)
(269,344 )	156,489	78,788
(986,665 )	(158,977 )	(741,042)
(542,981 )	(250,805 )	(683,167)
(174,340 )	(64,661 )	(136,663)
(717,321 )	(315,466 )	(819,830)
(249,973 )	154,261	87,408
(19,371 )	2,228	(8,620 )
(269,344 )	156,489	78,788
(683,942 )	(360,423 )	(1,195,928 )
(235,767 )	172,604	97,870
(919,709 )	(187,819 )	(1,098,058 )
(0.34 )	(0.15 )	(0.38 )
(0.34 )	(0.15 )	(0.38 )

Assets

Non-Current Assets

Property, plant and equipment

Other financial assets

Right-of-use asset

Investment in associate

Investment at fair value

Current Assets

Loans to related companies

Trade and other receivables

Investment at fair value

Current tax receivable

Cash and cash equivalents

Assets of disposal group

Total Assets

Equity and Liabilities

Equity

Equity Attributable to Equity Holders of Parent Stated capital

Reserves

Accumulated loss

Non controlling interest

Liabilities

Non - current Liabilities

Lease liabilities

Borrowings

Deferred income

Current Liabilities

Trade and other payables

Loans from group companies

Lease liabilities

Deferred income

Liabilities of disposal groups

Total Liabilities

Total Equity and Liabilities

35,167	58,706	51,159
-	909,093	-
35,604	-	82,929
18,088	-	17,946
489,551	43,085	576,102
578,410	1,010,884	728,136
-	-	-
235,831	151,556	258,332
113,727	235,357	47,494
-	-	-
3,731,127	4,668,316	4,055,007
4,080,685	5,055,229	4,360,833
31,014	-	-
4,690,109	6,066,113	5,088,969
9,067,560	9,067,560	9,067,560
(303,756 )	(73,148 )	(404,289 )
(4,310,129 )	(3,088,441 )	(3,592,808 )
4,453,675	5,905,968	5,070,463
(767,036 )	(201,721 )	(464,115 )
3,686,639	5,704,247	4,606,348
-	-	54,969
149,997	150,569	138,888
-	42,030	151,164
149,997	192,599	345,021
214,133	169,267	108,822
2,516	-	-
34,227	-	28,778
539,021	-	-
789,897	169,267	137,600
63,576	-	-
1,003,470	361,866	482,621
4,690,109	6,066,113	5,088,969

Basic earnings (loss) per share (cents) Diluted earnings (loss) per share (cents)

From discontinued operations Basic earnings (loss) per share (cents) Diluted earnings (loss) per share (cents)

Group Segment reporting

(0.25 )	(0.12 )	(0.32)
(0.25 )	(0.12 )	(0.32)
(0.08 )	(0.03 )	(0.06 )
(0.08 )	(0.03 )	(0.06 )

STATEMENT OF CASH FLOWS

FOR THE PERIOD ENDED 30 JUNE 2020

	Group
Figures in US Dollars	6 months ended 6 months ended	12 months ended

Management	Event	Outsourcing	Other	Total
Fees	Management	Income
	Services

30 June 2020

30 June 2019 December 2019

As at 30 June 2020
Revenue	19,424	-	-	-	19,424
Other income	-	1,233	-	14,958	16,191
Other operating gains	(79,570 )	922	-	(121,098 )	(199,746 )
Finance income	-	-	-	13,463	13,463
Operating expenses	(77,412 )	(177,728 )	-	(387,145 )	(642,285 )
Loss from continued operations	(137,558 )	(175,574 )	-	(479,822 )	(792,954 )
Segment assets and liabilities
Assets	85,678	733,251	-	3,840,167	4,659,095
Liabilities	(193,971 )	(615,577 )	-	(130,346 )	(939,894 )
Assets held for sale	-	-	31,014	-	31,014
Liabilites held for sale	-	-	(63,576 )	-	(63,576 )
		(108,294 )	117,674	(32,562 )	3,709,821	3,686,639
As at 30 June 2019
Revenue	19,546	1,019,921	-	-	1,039,466
Other Income	-	10,248	-	8,096	18,344
Other operating gains	3,167	1,981	-	(4,275 )	873
Finance income	-	288	-	35,918	36,206
Finance cost	(12 )	-	-	(1,551 )	(1,563 )
Operating expenses	(84,866 )	(576,841 )	-	(526,701 )	(1,188,407 )
Loss from continued operations	(62,165 )	455,597	-	(488,513 )	(95,081 )
Segment assets and liabilities
Assets	41,272	747,325	-	5,277,515	6,066,113
Liabilities	(165,626 )	(42,103 )	-	(154,137 )	(361,866 )
		(124,353 )	705,222	-	5,123,379	5,704,247

STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 30 JUNE 2020

Cash flows from operating activities

Cash used in operations

Finance income

Finance costs

Tax paid

Cash flows of discontinued operations

Net cash from operating activities

Cash flows from investing activities

Purchase of property, plant and equipment

Proceeds on sale of plant and equipments

Investment in associates

Purchase of investments at fair value

Net cash from investing activities

Cash flows from financing activities

Amounts received from related companies

Proceeds from borrowings

Repayment of borrowings

Payment of lease liablities

Dividend paid to non-controlling interest

Net cash from financing activities

Total cash and cash equivalent movement for the 6 months Cash and cash equivalents at the beginning of the 6 months Effect of exchange rate movement on cash balances

bank balance of discontinued operations

Total cash and cash equivalents at the end of 6 months

Total cash and cash equivalents at end of the year

(53,689 )	(85,409 )	(551,491 )
12,723		36,236	78,530
740		(1,563 )	(6,633 )
-		(1,583 )	1,463
(163,647 )	-	(97,322 )
(203,873 )	(52,319 )	(575,453 )
(16,971 )	-	(8,437 )
4,754		-	-
-		-	(18,060 )
(66,233 )	(594,444 )	(403,763 )
(78,450 )	(594,444 )	(430,260 )
2,516		-	-
-		21,981	22,259
-		-	(11,959 )
(49,520 )	-	(25,961 )
-		-	(193,162 )
(47,004 )	21,981	(208,823 )
(329,327 )	(624,782 )	(1,214,536 )
4,055,007		5,297,837	5,297,837
(17,972 )	(4,739 )	(28,294 )
23,419		-	-
3,731,127		4,668,316	4,055,007
3,731,127		4,668,316	4,055,007

	Stated	Foreign	Revaluation	Accumulated	Total	Non	Total
	Capital	Currency	Reserve of	Loss	Attributable to	Controlling	Equity
		translation	Investment		Equity Holders	Interest
		Reserve	Property		of the group/
					Company
Group
Balance as at 1 January 2019	9,067,560	(28,191 )	-	(2,772,978 )	6,266,391	(401,699 )	5,864,692
Loss for the period	-	-	-	(315,466 )	(315,466 )	156,489	(158,977 )
Other comprehensive income	-	(44,957 )	-	-	(44,957 )	16,115	(28,842 )
Total Comprehensive Loss for the period	-	(44,957 )	-	(315,466 )	(360,423 )	172,604	(187,819 )
Sale of shares non contoling interest	-	-	-	-	-	27,374	27,374
Balance as at 30 June 2019
9,067,560	(73,148 )	-	(3,088,444 )	5,905,968	(201,721 )	5,704,247
Loss for the period	-	-	-	(504,364 )	(504,364 )	(77,701 )	(582,065 )
Other comprehensive income	-	(29,599 )	(301,542 )	-	(331,141 )	2,967	(328,174 )
Total Comprehensive Loss for the period	-	(29,599 )	(301,542 )	(504,364 )	(835,505 )	(74,734 )	(910,239 )
Sale of shares non-controlling interest	-	-	-	-	-	5,500	5,500
Dividends	-	-	-	-	-	(193,160 )	(193,160 )
Balance as at 31 December 2019 - Audited	9,067,560	(102,747 )	(301,542 )	(3,592,808 )	5,070,463	(464,115 )	4,606,348
Balance at 1 January 2020
9,067,560	(102,747 )	(301,542 )	(3,592,808 )	5,070,463	(464,115 )	4,606,348
Loss for the period	-	-	-	(717,321 )	(717,321 )	(269,344 )	(986,665 )
Other comprehensive income	-	100,533	-	-	100,533	(33,577 )	66,956
Total Comprehensive Loss for the period	-	100,533	-	(717,321 )	(616,788 )	(302,921 )	(919,709 )
Balance at 30 June 2020	9,067,560	(2,214 )	(301,542 )	(4,310,129 )	4,453,675	(767,036 )	3,686,639

Board of Directors		Contact Details	Auditors
Lesang Magang	Independent Non-Executive Chairman	Leutlwetse Tumelo - Executive Director
Rupert McCammon	Managing Director	Office 001, Ground Floor, Regus Hub, i-Towers,
Leutlwetse Tumelo	Executive Director	Plot 54368, CBD, Gaborone, Botswana
Lipalesa Makepe	Independent Non-Executive Director	P O Box AE 133 AEH, Gaborone, Botswana
		T: [phone]
		E: [e-mail]

Investing in Africa.