2024 Annual Report

Revenue $21.865M (Up 5.4%) Operating loss $298K (2023 Loss $2,513K) Loss for the period $46K (2023 Loss $10,752K) Cash at bank $1,737K (2023 $229K) Shareholders Funds $3,104K (2023 $1,446K) Review of operations and outlook Kilimanjaro Consulting As signalled in our interim report, general economic conditions in both Australia and New Zealand remain tough. Leveraging off our ability to improve efficiency through the use of technology, our clients continued to invest modestly. Coupled with productivity improvements and management of costs, Kilimanjaro was able to return a much-improved performance in the second half of the year. Changes in product margins and a shift in the business product mix led to a slight reduction in recurring revenue, however contracted revenue increased significantly. Our Acumatica (formerly MYOB Advanced) base now exceeds 300 clients. As the transition from Exo to Acumatica continues, the product mix margin will be restored. The cooperation between Kilimanjaro and MYOB drives our success and our relationship has benefitted from a renewed focus by MYOB on their partner channel. The rebrand of MYOB Advanced to MYOB Acumatica positions this product squarely in the mid-market, where Kilimanjaro has built market-leading capability to service larger more complex organisations. Acumatica remains the fastest-growing cloud SaaS ERP system in the world; internationally recognised and multi-award winning. Acumatica’s continued investment in AI and automation makes it an attractive solution for mid-market organisations. Kilimanjaro is the largest player in both the MYOB Acumatica space as well as the MYOB Exo space in Australia and New Zealand. Marketing activity and sales effort both required additional resources to maintain our progress in difficult economic conditions, and increased competition. In New Zealand, business owners are likening the current economic circumstances to the GFC and Covid. As our business thrives in times of strong business confidence, the current circumstances are particularly challenging. Good management of costs and incremental improvements in efficiency have enabled Kilimanjaro to return a significantly better result this year than last. We are particularly proud of the high levels of productivity in our teams, our high Net Promoter Score, and our Client Retention. Our organisational culture has been maintained despite our growth, enabling us to provide an attractive workplace for our highly skilled people. Recurring Revenue $4.459M (2023 $4.481M) Contracted Revenue $4.481M (2023 $4.171M) iSell As a quoting tool for Managed Service Providers (MSP’s), ITQuoter provides an elegant solution for the quote-to-procurement cycle, with data feeds from the major suppliers. The addition of customer portals is expected to make the product more competitive and more marketable to large MSP’s. Following several years of development in changing from on-premise software to the cloud, we now have a solid and stable product and are getting some notable wins in the market. Aggressive cost-cutting has reduced the losses. Total revenue growth was 14.5%. Datagate Off the back of success in the US markets, Datagate plans to further expand geographically, and continue to grow recurring revenue. The Datagate board has elected to take the opportunity to build market share now, rather than throttle back growth to achieve break-even. Growth in recurring revenue in Datagate was 24.8%. Subsequent to year end, Enprise Group subscribed to a further 35,714 shares at $2.80 per share in an oversubscribed Datagate rights issue. A major change in the accounting treatment of the Datagate numbers is the application of IFRS2 to the employee share options. A cost of approximately $0.312m was booked to Datagate to recognise the cost of these options, and Enprise has recognised our share of that in these accounts. If Enprise Group’s 2,446,738 shares in Datagate (post the rights issue) were valued at the August 2024 rights issue price of $2.80 per share, the value of our investment would be $6,850,866. Vadacom Enprise Group has a 6.35% investment in Vadacom Holdings. Although a smaller player in the VOIP telecommunications space, Vadacom continues to deliver dividends to the Group and provide a good return on our investment. Future Plans Our recently announced acquisition of a 52% share in Recipe Marketing, an award-winning HubSpot Platinum Solutions Partner, brings expertise in an area closely aligned to our MYOB business. The two businesses operate in the same market space and have similar ethics and culture. There are opportunities for cross-referrals of clients, and cross-utilisation of skills. We welcome Recipe Marketing to the family. Ends Elliot Cooper Finance Director 0275615501