ISA HOLDINGS LIMITED - Unaudited Condensed Consolidated Results for the six months ended 31 August 2026

Evidence from the filing

• Profit before other income and expenses increased 33% to R39.7 million, gross margin remained steady at 43%, and operating expenditure rose only 3% to R17.1 million.

  “Profit before other income and expenses increased by 33% during the current reporting period to R39.7 million, compared to R29.9 million in the prior reporting period, and gross margin remains steady at 43%. Operating expenditure increased by a mere 3% to R17.1 million, compared to R16.6 million in the prior reporting period, which when viewed together with the increase in services rendered to our customers, gives management the confidence to continue investing in several process automation initiatives and the use of artificial intelligence to complement and streamline various business functions.”

• Turnover continues to include a healthy mix of third-party products, subscriptions, and Managed Security Service offerings underpinned by the internally developed MSS Pulse platform.

  “Turnover increased by a pleasing 35% during the current reporting period to R92.5 million, compared to R68.8 million in the previous corresponding reporting period (“the prior reporting period”) and continues to include a healthy mix of third-party products, subscriptions, and our Managed Security Service offerings, which is underpinned by MSS Pulse, our internally developed security infrastructure monitoring and reporting platform.”

• Reported profit attributable to shareholders was R35 million, but excluding DataProof sale proceeds it was R18.2 million and increased by 24%, highlighting the distortion from the disposal gain.

  “The sale of our equity-accounted investment (“DataProof”), as announced on SENS on 23 April 2026 and 20 May 2026, was concluded during the current reporting period, resulting in several dramatic variances compared to the prior reporting period. Illustratively, our profits before tax increased by 195% to R54.9 million, compared to R18.6 million in the prior reporting period, while our profits attributable to equity shareholders for the period increased by 139% to R35 million, compared to R14.6 million in the prior reporting period. If we were to exclude the proceeds from the sale of DataProof, our profits before tax would have increased by 33% to R24.7 million, and our profits attributable to equity shareholders for the period would have increased by 24% to R18.2 million.”

• Turnover growth of 35% was largely attributed to the recognition of a few sizeable contracts completed during the period, indicating a lumpy contribution to revenue growth.

  “Turnover increased by a pleasing 35% during the current reporting period to R92.5 million, compared to R68.8 million in the previous corresponding reporting period (“the prior reporting period”) and continues to include a healthy mix of third-party products, subscriptions, and our Managed Security Service offerings, which is underpinned by MSS Pulse, our internally developed security infrastructure monitoring and reporting platform. This growth in turnover is largely attributed to the recognition of a few sizeable contracts completed during the current reporting period.”

• Trade and other receivables increased by 86% to R34.8 million and trade and other payables increased by 43% to R53.1 million, creating materially larger working-capital balances.

  “Trade and other receivables increased by 86% to R34.8 million from R18.7 million in the prior reporting period, and trade and other payables increased by 43% to R53.1 million from R37.1 million in the prior reporting period.”

• The increase in cash and cash equivalents to R73.2 million was largely a result of proceeds from the DataProof sale rather than recurring operations.

  “Cash and cash equivalents increased to R73.2 million at the end of the current reporting period, from R13.9 million at the beginning of the current reporting period and R26.3 million at the end of the prior comparative reporting period. This dramatic increase in cash reserves is largely a result of the proceeds received from the sale of DataProof during the current reporting period.”

• The board did not declare an interim dividend while accumulating cash reserves and considering capital-allocation options.

  “The board of directors of ISA (“the board”) has not declared an interim dividend to shareholders, as they are accumulating their cash reserves while considering several capital allocation options available to them at this time.”

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