XII Results Bearish

NUMERAL LIMITED - CANCELLATION OF S524165 SF: Summary of the Audited Financial Statements for the Year Ended 28 February 2026

Numeral Limited
Full analysis

What this filing means

Revenue doubled, profit barely moved, and earnings per share collapsed — that is the bottom line on Numeral's audited year to February 2026. Top line grew 126% to USD 2.2m but operating profit rose only 13% to USD 180k, and HEPS fell 47% to USD 0.0643 even after a 1-for-10 share consolidation. The prior-year comparatives were also restated via a separate change statement, raising questions about the baseline against which the growth is being measured.

Numeral's sales more than doubled, which sounds great — until you see that operating profit barely budged and earnings per share almost halved. That tells you the company is growing by selling much more for very little extra profit, and the share count grew enough to dilute shareholders. Combined with a restated prior year, the audited numbers raise more questions than they answer about whether this growth is actually creating value.

Bull case

  • Revenue more than doubled, growing 126% to USD 2.2m — clear top-line acceleration.
  • Operating profit expanded 13% to USD 180,283, confirming the business remained profitable through the growth phase.
  • Unmodified audit opinion from Barnes Associates supports the integrity of the reported figures.

Bear case

  • Revenue doubled to USD 2.2m (+126%) while operating profit rose only 13% to USD 180k, indicating severe operating margin compression as the business scaled.
  • HEPS collapsed 47% to USD 0.0643 even as revenue doubled, pointing to material share dilution or significant below-the-line erosion of shareholder returns.
  • Prior-year comparatives were restated via a separate change statement, undermining the credibility of the baseline used to frame current-year growth.
  • No dividend was declared for the year, offering shareholders no cash return despite the operational scale-up.
  • The salient features omit cash flow, net debt, and segment detail — sustainability of the USD 180k operating profit cannot be assessed from this filing alone.
View original SENS announcement

AI-generated summary by SENS-AI, based on the original JSE SENS filing.

SENS-AI conclusion

A two-tier result where the headline growth tells one story and the shareholder returns tell another. Revenue more than doubled, but operating profit only edged up 13% — a sharp margin compression as the business scaled. HEPS fell 47% even after the 1-for-10 consolidation, which means on the original share count the per-share erosion was even worse. The restated prior year adds a credibility discount and there is no dividend. So what: the operating model is still profitable in absolute terms, but the market needs the next set of results to see whether margins stabilise and the per-share bleed is arrested. Missing evidence: No balance sheet, cash flow statement, or statement of changes in equity disclosed in short-form announcement; No segmental revenue or cost breakdown to explain 113pp gap between revenue growth and operating profit growth; No forward guidance, trading statement, or management commentary on outlook or strategy; No explanation for the restatement of prior-year comparatives beyond reference to separate change statement; No disclosure of net debt, cash position, liquidity, or covenant compliance; No non-HEPS reconciling items disclosed — HEPS equals basic EPS, but cause of collapse versus operating profit not stated

The next interim is where the market will test whether operating margins stabilise or the per-share erosion continues.

Evidence from the filing

  • Revenue more than doubled, growing 126% to USD 2.2m — clear top-line acceleration.

    “Revenue 2 199 918 126% 974 816”
  • Operating profit expanded 13% to USD 180,283, confirming the business remained profitable through the growth phase.

    “Operating Profit 180 283 13% 160 170”
  • Unmodified audit opinion from Barnes Associates supports the integrity of the reported figures.

    “The consolidated annual financial results were audited by Barnes Associates who expressed an unmodified audit opinion”
  • HEPS collapsed 47% to USD 0.0643 even as revenue doubled, pointing to material share dilution or significant below-the-line erosion of shareholder returns.

    “Headline earnings per share 0.0643 -47% 0.122”
  • Prior-year comparatives were restated via a separate change statement, undermining the credibility of the baseline used to frame current-year growth.

    “the comparative results for the year ended 28 February 2025 have been restated as published in a separate change statement on 15 July 2026”
  • No dividend was declared for the year, offering shareholders no cash return despite the operational scale-up.

    “Dividend - - -”
Category
Results
Event posture
Bearish Continuation
Published
Jul 20, 2026

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