Cover
Cover - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | May 28, 2021 | Sep. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Mar. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 001-36027 | ||
Entity Registrant Name | MIX TELEMATICS LIMITED | ||
Entity Incorporation, State or Country Code | T3 | ||
Entity Address, Address Line One | 750 Park of Commerce Blvd | ||
Entity Address, Address Line Two | Suite 100 | ||
Entity Address, City or Town | Boca Raton | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 33487 | ||
City Area Code | 877 | ||
Local Phone Number | 585-1088 | ||
Title of 12(b) Security | American Depositary Shares (“ADSs”), each representing 25 ordinary shares, no par value | ||
Trading Symbol | MIXT | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 155,418,063 | ||
Entity Common Stock, Shares Outstanding | 605,578,516 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s Proxy Statement for the 2021 Annual General Meeting of Shareholders are incorporated by reference in Part III of this Form 10-K. | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001576914 | ||
Current Fiscal Year End Date | --03-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 45,489 | $ 17,953 |
Restricted cash | 854 | 699 |
Accounts receivables, net of allowances for doubtful accounts of $3.6 million and $5.6 million, respectively | 19,265 | 24,100 |
Inventory, net | 3,109 | 3,271 |
Prepaid expenses and other current assets | 8,509 | 7,375 |
Total current assets | 77,226 | 53,398 |
Property and equipment, net | 23,463 | 30,019 |
Goodwill | 43,938 | 37,923 |
Intangible assets, net | 18,303 | 15,007 |
Deferred tax assets | 3,782 | 3,108 |
Other assets | 4,434 | 4,200 |
Total assets | 171,146 | 143,655 |
Current liabilities: | ||
Short-term debt | 1,674 | 2,367 |
Accounts payables | 6,560 | 5,251 |
Accrued expenses and other liabilities | 18,675 | 14,839 |
Deferred revenue | 5,788 | 5,077 |
Total current liabilities | 32,697 | 27,534 |
Deferred tax liabilities | 9,187 | 11,436 |
Long-term accrued expenses and other liabilities | 5,863 | 5,660 |
Total liabilities | 47,747 | 44,630 |
MiX Telematics Limited stockholders’ equity | ||
Preference shares: 100 million shares authorized but not issued | 0 | 0 |
Ordinary shares: 600.9 million and 605.6 million no-par value shares issued and outstanding as of March 31, 2020 and 2021, respectively | 67,401 | 66,522 |
Less treasury stock at cost: 54 million shares as of March, 31, 2020 and 2021, respectively | (17,315) | (17,315) |
Retained earnings | 76,710 | 67,482 |
Accumulated other comprehensive (loss)/income | 1,924 | (11,070) |
Additional paid-in capital | (5,326) | (6,599) |
Total MiX Telematics Limited stockholders’ equity | 123,394 | 99,020 |
Non-controlling interest | 5 | 5 |
Total stockholders’ equity | 123,399 | 99,025 |
Total liabilities and stockholders’ equity | $ 171,146 | $ 143,655 |
Treasury stock (in shares) | 53,816,750 | 54,000,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 5,575 | $ 3,602 |
Preference shares, authorized (in shares) | 100,000,000 | 100,000,000 |
Preference shares, issued (in shares) | 0 | 0 |
Ordinary shares, issued (in shares) | 605,600,000 | 600,900,000 |
Ordinary shares, outstanding (in shares) | 605,600,000 | 600,900,000 |
Treasury stock (in shares) | 53,816,750 | 54,000,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue | |||
Total revenue | $ 126,894 | $ 145,650 | $ 143,705 |
Cost of revenue | |||
Total cost of revenue | 43,865 | 53,015 | 46,885 |
Gross profit | 83,029 | 92,635 | 96,820 |
Operating expenses | |||
Sales and marketing | 11,344 | 13,324 | 14,489 |
Administration and other | 53,487 | 58,263 | 58,040 |
Total operating expenses | 64,831 | 71,587 | 72,529 |
Income from operations | 18,198 | 21,048 | 24,291 |
Other income/(expense) | (897) | (299) | 101 |
Net interest income/(expense) | (72) | 67 | 233 |
Income before income tax expense | 17,229 | 20,816 | 24,625 |
Income tax expense | 2,634 | 9,829 | 9,815 |
Net income for the year | 14,595 | 10,987 | 14,810 |
Net income attributable to MiX Telematics Limited stockholders | 14,595 | 10,987 | 14,810 |
Net income attributable to non-controlling interest | 0 | 0 | 0 |
Net income for the year | $ 14,595 | $ 10,987 | $ 14,810 |
Net income per ordinary share | |||
Basic (in dollars per share) | $ 0.03 | $ 0.02 | $ 0.03 |
Diluted (in dollars per share) | 0.03 | 0.02 | 0.03 |
Net income per American Depository Share | |||
Basic (in dollars per AD share) | 0.66 | 0.50 | 0.66 |
Diluted (in dollars per AD share) | $ 0.65 | $ 0.48 | $ 0.63 |
Ordinary shares | |||
Weighted average (in shares) | 549,415 | 553,653 | 563,578 |
Diluted weighted average (in shares) | 560,624 | 567,879 | 583,741 |
American Depository Shares | |||
Weighted average (in shares) | 21,977 | 22,146 | 22,543 |
Diluted weighted average (in shares) | 22,425 | 22,715 | 23,350 |
Related party transactions | |||
Short-term lease cost | $ 407 | $ 198 | $ 721 |
Non-executive Chairperson | |||
Related party transactions | |||
Short-term lease cost | 0 | 182 | 537 |
Subscription | |||
Revenue | |||
Total revenue | 113,351 | 127,570 | 123,150 |
Cost of revenue | |||
Total cost of revenue | 33,414 | 39,828 | 34,940 |
Hardware and other | |||
Revenue | |||
Total revenue | 13,543 | 18,080 | 20,555 |
Cost of revenue | |||
Total cost of revenue | $ 10,451 | $ 13,187 | $ 11,945 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income for the year | $ 14,595 | $ 10,987 | $ 14,810 |
Foreign currency translation (losses)/gains, net of tax | 12,994 | (13,163) | (15,474) |
Other comprehensive (loss)/income for the year | 12,994 | (13,163) | (15,474) |
Total comprehensive (loss)/income for the year | 27,589 | (2,176) | (664) |
Total comprehensive (loss)/income attributable to MiX Telematics Limited stockholders | 27,589 | (2,176) | (664) |
Total comprehensive income attributable to non-controlling interest | 0 | 0 | 0 |
Total comprehensive (loss)/income for the year | $ 27,589 | $ (2,176) | $ (664) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, Adjusted Balance | Common Stock | Common StockCumulative Effect, Period of Adoption, Adjusted Balance | Treasury Stock | Treasury StockCumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive Income/(Loss) | Accumulated Other Comprehensive Income/(Loss)Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income/(Loss)Cumulative Effect, Period of Adoption, Adjusted Balance | Additional Paid-In Capital | Additional Paid-In CapitalCumulative Effect, Period of Adoption, Adjusted Balance | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Retained EarningsCumulative Effect, Period of Adoption, Adjusted Balance | Total MiX Telematics Limited Stockholders’ Equity | Total MiX Telematics Limited Stockholders’ EquityCumulative Effect, Period of Adoption, Adjustment | Total MiX Telematics Limited Stockholders’ EquityCumulative Effect, Period of Adoption, Adjusted Balance | Non-Controlling Interest | Non-Controlling InterestCumulative Effect, Period of Adoption, Adjusted Balance |
Beginning balance (in shares) at Mar. 31, 2018 | 604,420 | 604,420 | ||||||||||||||||||
Beginning balance at Mar. 31, 2018 | $ 123,938 | $ 2,417 | $ 126,355 | $ 72,547 | $ 72,547 | $ (9,227) | $ (9,227) | $ 17,589 | $ 17,589 | $ (7,413) | $ (7,413) | $ 50,437 | $ 2,417 | $ 52,854 | $ 123,933 | $ 2,417 | $ 126,350 | $ 5 | $ 5 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Total comprehensive (loss)/income | (664) | (15,474) | 14,810 | (664) | ||||||||||||||||
Net income for the year | 14,810 | 14,810 | 14,810 | |||||||||||||||||
Other comprehensive income (loss) | (15,474) | (15,474) | (15,474) | |||||||||||||||||
Total transactions with owners (in shares) | (2,473) | |||||||||||||||||||
Total transactions with owners | (8,750) | $ (4,347) | 511 | (4,914) | (8,750) | |||||||||||||||
Issuance of common stock in relation to stock options and SARs exercised (in shares) | 6,685 | |||||||||||||||||||
Issuance of common stock in relation to stock options and SARs exercised | 1,002 | $ 1,002 | 1,002 | |||||||||||||||||
Stock-based compensation | 511 | 511 | 511 | |||||||||||||||||
Dividends declared on ordinary shares | (4,914) | (4,914) | (4,914) | |||||||||||||||||
Ordinary shares repurchased and cancelled (in shares) | (9,158) | |||||||||||||||||||
Ordinary shares repurchased and cancelled | (5,349) | $ (5,349) | (5,349) | |||||||||||||||||
Ending balance (in shares) at Mar. 31, 2019 | 601,948 | 601,948 | ||||||||||||||||||
Ending balance at Mar. 31, 2019 | $ 116,941 | $ (262) | $ 116,679 | $ 68,200 | $ 68,200 | (9,227) | $ (9,227) | 2,115 | $ (22) | $ 2,093 | (6,902) | $ (6,902) | 62,750 | $ (240) | $ 62,510 | 116,936 | $ (262) | $ 116,674 | 5 | $ 5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Accounting Standards Update [Extensible List] | ASU 2016-13 | |||||||||||||||||||
Total comprehensive (loss)/income | $ (2,176) | (13,163) | 10,987 | (2,176) | ||||||||||||||||
Net income for the year | 10,987 | 10,987 | 10,987 | |||||||||||||||||
Other comprehensive income (loss) | (13,163) | (13,163) | (13,163) | |||||||||||||||||
Total transactions with owners (in shares) | (1,013) | |||||||||||||||||||
Total transactions with owners | (15,478) | $ (1,678) | (8,088) | 303 | (6,015) | (15,478) | ||||||||||||||
Issuance of common stock in relation to stock options and SARs exercised (in shares) | 2,026 | |||||||||||||||||||
Stock-based compensation | 303 | 303 | 303 | |||||||||||||||||
Dividends declared on ordinary shares | (6,015) | (6,015) | (6,015) | |||||||||||||||||
Ordinary shares repurchased and cancelled (in shares) | (3,039) | |||||||||||||||||||
Ordinary shares repurchased and cancelled | (1,678) | $ (1,678) | (1,678) | |||||||||||||||||
Purchases of treasury stock | $ (8,088) | (8,088) | (8,088) | |||||||||||||||||
Ending balance (in shares) at Mar. 31, 2020 | 600,900 | 600,934 | ||||||||||||||||||
Ending balance at Mar. 31, 2020 | $ 99,025 | $ 66,522 | (17,315) | (11,070) | (6,599) | 67,482 | 99,020 | 5 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Total comprehensive (loss)/income | 27,589 | 12,994 | 14,595 | 27,589 | ||||||||||||||||
Net income for the year | 14,595 | 14,595 | 14,595 | |||||||||||||||||
Other comprehensive income (loss) | 12,994 | 12,994 | 12,994 | |||||||||||||||||
Total transactions with owners (in shares) | 4,645 | |||||||||||||||||||
Total transactions with owners | (3,215) | $ 879 | 0 | 1,273 | (5,367) | (3,215) | ||||||||||||||
Issuance of common stock in relation to stock options and SARs exercised (in shares) | 4,645 | |||||||||||||||||||
Issuance of common stock in relation to stock options and SARs exercised | 879 | $ 879 | 879 | |||||||||||||||||
Stock-based compensation | 1,273 | 1,273 | 1,273 | |||||||||||||||||
Dividends declared on ordinary shares | $ (5,367) | (5,367) | (5,367) | |||||||||||||||||
Ending balance (in shares) at Mar. 31, 2021 | 605,600 | 605,579 | ||||||||||||||||||
Ending balance at Mar. 31, 2021 | $ 123,399 | $ 67,401 | $ (17,315) | $ 1,924 | $ (5,326) | $ 76,710 | $ 123,394 | $ 5 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | |||
Net income for the year | $ 14,595 | $ 10,987 | $ 14,810 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Current income taxes | 6,953 | 5,239 | 6,729 |
Deferred income taxes | (4,319) | 4,590 | 3,086 |
(Gain)/loss on disposal of property and equipment | 13 | (270) | (43) |
Depreciation | 12,878 | 16,149 | 12,492 |
Amortization of intangible assets | 3,681 | 3,823 | 3,876 |
Amortization of deferred commissions | 3,533 | 3,486 | 2,217 |
Impairment of long-lived assets | 8 | 6 | 62 |
Net interest (income)/expense | 72 | (67) | (233) |
Stock based compensation expense | 1,273 | 660 | 511 |
Net foreign exchange (gain)/loss | 959 | 610 | (28) |
Change in allowance for doubtful accounts | 2,961 | 3,941 | 2,098 |
Write-down of inventory to net realizable value | 660 | 339 | 299 |
Net accrued expenses and other liabilities raised | 2,535 | 3,016 | 1,900 |
Other non-cash items | (245) | (210) | (253) |
Changes in operating assets and liabilities: | |||
Inventories | (498) | (74) | 986 |
Accounts receivables | 1,872 | (7,309) | (3,615) |
Prepaid expenses and other current assets | (1,589) | (45) | (378) |
Accounts payables | (2,529) | 3,419 | 432 |
Accrued expenses and other liabilities | 959 | (7,662) | (3,261) |
Deferred commissions | (2,251) | (3,677) | (2,311) |
Foreign currency translation adjustments on operating assets and liabilities | 2,482 | (3,478) | (2,434) |
Interest received | 641 | 683 | 882 |
Interest paid | (311) | (204) | (206) |
Income tax paid | (5,761) | (5,774) | (6,163) |
Net cash provided by operating activities | 38,572 | 28,178 | 31,455 |
Cash flows from investing activities: | |||
Proceeds from the sale of property and equipment | 4 | 1,294 | 162 |
Acquisition of intangible assets | (4,024) | (5,666) | (4,778) |
Loans to external parties | 0 | (344) | 0 |
Net cash used in investing activities | (8,650) | (19,422) | (19,223) |
Cash flows from financing activities: | |||
Proceeds from issuance of ordinary shares in relation to stock options and SARs exercised | 879 | 0 | 1,002 |
Cash paid for ordinary shares repurchased | 0 | (9,764) | (5,349) |
Cash paid on dividends to MiX Telematics stockholders | (5,359) | (5,999) | (4,907) |
Movement in short-term debt | (729) | 312 | 650 |
Net cash used in financing activities | (5,209) | (15,451) | (8,604) |
Net increase/(decrease) in cash and cash equivalents, and restricted cash | 24,713 | (6,695) | 3,628 |
Cash and cash equivalents, and restricted cash at the beginning of the year | 18,652 | 27,838 | 27,834 |
Effect of exchange rate changes on cash and cash equivalents, and restricted cash | 2,978 | (2,491) | (3,624) |
Cash and cash equivalents, and restricted cash at the end of the year | 46,343 | 18,652 | 27,838 |
In-vehicle devices | |||
Cash flows from investing activities: | |||
Acquisition of property and equipment | (4,232) | (13,544) | (13,928) |
Other | |||
Cash flows from investing activities: | |||
Acquisition of property and equipment | $ (398) | $ (1,162) | $ (679) |
Nature of the Business
Nature of the Business | 12 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of the Business | Nature of the Business MiX Telematics Limited and its consolidated subsidiaries (“the Company”) is a global provider of connected fleet and mobile asset solutions delivered as Software-as-a-Service (“SaaS”). The Company’s solutions enable customers to manage, optimize and protect their investments in commercial fleets, mobile assets or personal vehicles. The Company’s solutions enable a wide range of customers, from large enterprise fleets to small fleet operators and consumers, to reduce fuel and other operating costs, improve efficiency, enhance regulatory compliance, promote driver safety, manage risk and mitigate theft. The Company’s solutions mostly rely on our proprietary, highly scalable technology platforms, which allows it to collect, analyze and deliver information based on data from customers’ vehicles. Using intuitive, web-based interfaces, reports or mobile applications, the Company’s fleet customers can access large volumes of real-time and historical data, monitor the location and status of their drivers and vehicles and analyze a wide number of key metrics across their fleet operations. MiX Telematics Limited is a public company incorporated and domiciled in South Africa. The Company’s ordinary shares are publicly traded on the Johannesburg Stock Exchange (JSE: MIX) and its American Depositary Shares are listed on the New York Stock Exchange (NYSE: MIXT). The address of the Company’s principal executive office is 750 Park of Commerce Boulevard, Suite 100, Boca Raton, Florida, 33487. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Summary of significant accounting policies The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These accounting policies have been consistently applied to all the years presented, unless otherwise stated. Basis of preparation and consolidation The Company’s consolidated financial statements for the year ended March 31, 2021 are prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and should be read in conjunction with the accompanying notes thereto. All subsidiaries have been consolidated, including variable interest entities (“VIEs”) of which the Company is deemed to be the primary beneficiary. Inter-company transactions, balances and unrealized gains on transactions between group companies are eliminated. Unrealized losses are also eliminated except to the extent the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been adjusted to ensure consistency with the policies adopted by the Company. All subsidiaries have the same reporting dates as the Company. Non-controlling interests represent the non-controlling stockholders’ proportionate share of the net assets and results of operations of the Company’s subsidiaries. Non-controlling interests in the results and equity of subsidiaries are shown separately in the Consolidated Balance Sheet, Statement of Income, Statement of Comprehensive Income and Statement of Changes in Stockholders’ Equity, respectively. Use of estimates The preparation of consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the amounts reported and disclosed. Significant estimates include, but are not limited to, allowances for doubtful accounts, the assessment of expected cash flows used in evaluating goodwill and long-lived assets for impairment, the amortization period for deferred commissions, the determination of useful lives of the Company’s customer relationships, contingencies, the classification of devices and other hardware as in-vehicle devices (equipment) versus inventory based on the future expectation of the different types of customer contracts, income and deferred taxes, unrecognized tax benefits and valuation allowances on deferred tax assets. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements. As of March 31, 2021, the global outbreak of COVID-19 has had and, we believe, will continue to have an adverse impact on global economies and financial markets. We have taken into account the impact of COVID-19 on expected credit losses to the extent possible. Our expected credit losses have increased as a result. We also considered the impact on future cash flows and weighted average cost of capital rates related to goodwill sensitivities and impairment assessments. However, future changes in economic conditions related to COVID-19 could have an impact on future estimates and judgements used. Revenue from contracts with customers Significant judgments Revenue is recognized upon transfer of control of distinct promised products and/or services to customers in an amount that reflects the consideration that the Company expects to receive in exchange for those products and/or services. The Company enters into contracts that include the supply of fleet and mobile asset management equipment. For such contracts, the Company utilizes significant judgment to determine whether control of the equipment has transferred to the customer, and in instances where it does, it recognizes revenue in accordance with Revenue from Contracts with Customers (“ASC 606”). When control of the equipment does not transfer to the customer, which is when legal title does not transfer to the customer, our judgement is that the customer does not have the right to direct the use of the equipment when the customer does not operate the equipment or make any significant decisions about its use. In these instances the Company uses the equipment to provide fleet and mobile asset management services to the customer. Accordingly, these arrangements, which comprise virtually all of the transactions in which legal title does not pass to the customer, are not within the scope of ASC 842, Leases (“ASC 842”). Instead, for such contracts we have concluded that they are service contracts comprising a single performance obligation, and revenue is recognized over time pursuant to ASC 606. Recognition and measurement The Company provides fleet and mobile asset management solutions to its customers, and its principal revenue streams are (1) Subscription and (2) Hardware and other. Subscription revenue is recognized over time and hardware and other revenue is recognized at a point-in-time. To provide services to customers, a device is required which collects and transmits information collected from the vehicle or other asset. Fleet customers may also obtain other items of hardware, virtually all of which are functionally-dependent on the device. Some customers obtain control of the device and other hardware (where legal title transfers to the customer); while other customers do not (where legal title remains with the Company). A contract arises on the acceptance of a customer’s purchase order, which is typically executed in writing. In instances where the customer obtains control of the device and other hardware, which is typically upon installation or delivery to the customer, the device, the other hardware, the installation thereof and the service are each accounted for as separate performance obligations. The total transaction price is allocated to each performance obligation using relative stand-alone selling prices. Revenue allocated to the device and other hardware is recognized upon delivery, and revenue allocated to installation is recognized once the installation is complete, since installation is completed within a day. Revenue related to the service performance obligation (subscription) is recognized on a straight-line basis over the expected contractual term, since we consistently deliver telematics services on a continuous basis over that period. In instances where the customer does not obtain control of the device and other hardware, which is functionally-dependent on the device, there is only a single performance obligation, namely the service. The customer is not able to direct the use of these items, and accordingly these contracts do not contain leases. In these instances, the devices and other hardware are used by the Company to provide the services. The total revenue from these contracts is recognized as subscription revenue on a straight-line basis over the expected contractual term, since we consistently deliver telematics services on a continuous basis over that period. Revenue is presented net of discounts, value added tax, returns and after eliminating sales within the Company. The Company distributes devices and other hardware to certain small fleet operators and consumers through distributors. Distributors act as agents and hardware revenue is only recognized when the distributor sells the hardware unit to the end customer. Once a unit is sold to a customer, the customer enters into a service agreement directly with the Company. The obligation to supply the service and the credit risk rests with the Company. The subscription revenue is recognized when the service is rendered. The Company also sells hardware to motor vehicle dealerships for fitment into their vehicle trading stock. These dealerships purchase the hardware from the Company and are considered to act as a principal in the contract because they obtain title to the hardware, bear the risks and rewards of ownership and accordingly control the hardware purchased. The buyer of the vehicle then enters into a service-only contract with the Company. Revenue is recognized upon sale of the hardware to the dealership and subscription revenue is recognized as the services are provided to the customer. The Company distributes devices and other hardware to enterprise fleet customers through dealers. Dealers are considered to act as a principal for the sale of hardware to the end customer, and revenue is recognized by the Company upon sale of the hardware unit to the dealer. Dealers are also considered to act as a principal for the provision of the service to end customers because, even though the dealers do not provide the service themselves, the dealers control the right to receive the service before that right is transferred to the end customer, the dealers have the primary responsibility for fulfilling the promise to provide the service to the end customer, and the dealers have full discretion in establishing the prices charged to the end customer. Accordingly, subscription revenue is recognized as the service is provided to the dealers. Contract liabilities (deferred revenue) Timing of revenue recognition may differ from the timing of invoicing customers or collecting payments from customers. Typically, corporate customers pay in arrears, while consumer customers pay in advance. When customers are invoiced in advance for subscription services that will be provided over periods of more than one month, or pay in advance of service periods of more than one month, deferred revenue liabilities, or contract liabilities, are recorded. In all other instances, the Company has a right to consideration for subscription services from customers in an amount that corresponds directly with the value to customers of the Company’s performance completed to date. Therefore, revenue is recognized for the amount to which the Company has a right to invoice. The future subscription services will be provided over varying periods from 1 to 60 months. Contracts for which the Company receives a payment for a time period which is more than 12 months in advance are considered to comprise a significant financing component. Interest expense is accrued on the deferred revenue liability . This results in the revenue being measured at the future value of the payments received. Deferred commissions Commissions incurred to acquire contracts are capitalized and amortized, unless the amortization period is 12 months or less. The commission capitalized is attributed to the specific performance obligations in the related contract. Commission is considered commensurate with respect to a particular contract when equivalent/comparable commission is payable upon the extension or renewal of such a contract or upon the customer entering into a new contract. To the extent commission capitalized is commensurate, the commission attributable to service will be amortized over the minimum contractual period or, if shorter, the expected life of the contract. To the extent it is not commensurate, the commission capitalized that is attributable to service is amortized over the expected life of the contract. Typically, with regard to month-to-month contracts, commission payable is not considered commensurate for such contracts because no commission is payable as and when the customer extends each month by not giving notice. Accordingly, commission incurred on such contracts that is attributable to service is amortized over the expected life of the contract taking account of expected extensions/renewals. Commission capitalized that is attributable to hardware or installation is amortized in full at the time the related hardware, or installation, revenue is recognized. Recurring commission is commission which is payable for each month the customer remains with the Company. The amount capitalized reflects the total commission payable over the minimum contractual period or, if shorter, the expected life of the contract, together with the effect of the time value of money, where significant. As of March 31, 2020 and 2021, deferred commissions amounted to $3.6 million and $3.7 mill ion respectively, which are included within Other assets on the Balance Sheet. Amortization expense of external commissions capitalized is recognized in cost of sales, while that of internal commissions earned by the Company's sales personnel is recognized in sales and marketing costs. Commissions not capitalized under the 12-month practical expedient are also classified in the same manner. Foreign currency Functional and reporting currency Each subsidiary is consolidated by translating its assets, liabilities and results into the functional currency of its immediate parent company, and subsequently the consolidated position, determined in South African Rand, is translated into U.S. Dollars (reporting currency). Assets and liabilities are translated into U.S. Dollars using the exchange rates in effect at the balance sheet date. Equity items are translated at historical exchange rates, while income and expense items are translated using average exchange rates for the period. Foreign currency translation adjustments are reported in stockholders’ equity as a component of accumulated other comprehensive income/(loss) until disposal. The movement in the foreign currency translation adjustments is as follows (in thousands): As of March 31, 2020 2021 Cumulative foreign currency translation adjustments, beginning of year $ 2,115 $ (11,070) Adjustment on initial application of ASC 326 Financial Instruments – Credit Losses as of April 1, 2019 (22) — Foreign currency translation (losses)/gains for the year, net of tax (13,163) 12,994 Cumulative foreign currency translation adjustments, end of year $ (11,070) $ 1,924 Transactions and balances Transactions in foreign currencies are initially recorded by the Company and its subsidiaries in their respective functional currencies using the exchange rates at the dates of the transactions. Foreign currency monetary assets and liabilities are translated at exchange rates in effect at the balance sheet date. All resulting foreign exchange gains and losses are recognized in in Other income/(expense) in the Statement of Income, except for those gains and losses arising on long-term monetary assets held by a group entity in a foreign subsidiary for which settlement is neither planned nor anticipated within the foreseeable future, which forms part of the net investment of the foreign operation. These foreign exchange gains and losses are recognized as part of the foreign currency translation adjustments in accumulated other comprehensive income/(loss) until disposal. Financial Assets Cash and cash equivalents Cash and cash equivalents comprise cash on hand and deposits held on call with banks; all of which are available for use by the Company and have an original maturity of less than three months. Restricted cas h Restricted cash comprises deposits backing guarantees issued by financial institutions on behalf of the Company in respect of the Company’s obligations under certain lease, supply and other agreements, and cash held by MiX Telematics Enterprise BEE Trust (a VIE which is consolidated). Cash held by the Trust is to be used solely for the benefit of its beneficiaries. As at March 31, 2020 and 2021, the cash held by the Trust comprised $0.4 million and $0.5 million, respectively. Accounts receivable s Accounts receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. Since the terms of payment are not more than 12 months, accounts receivables are recognized initially at their transaction price. Subsequent to initial recognition, accounts receivables are measured at amortized cost using the effective interest method, less an allowance for doubtful accounts, which reflects expected credit losses . Allowance for doubtful accounts The allowance for doubtful accounts on accounts receivables is calculated by considering all relevant information, internal and external about the collectability of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts of future economic conditions to appropriately reflect the risk of losses over the remaining contractual lives of the assets. Historical loss rates, calculated as actual losses over a period as a percentage of revenue, are adjusted for current conditions and management’s expectations about future economic conditions. The allowance is measured on a collective basis where management groups their customers appropriately based on their credit risk characteristics. The allowance for doubtful accounts is a valuation account and the asset’s carrying amount is reduced and the amount of the loss is recognized in the Consolidated Statement of Income. Subse quent recoveries, if any, are credited to the allowance. A ctual write-downs are recorded when the asset is deemed uncollectible after all efforts to recover have yielded no results. Loans to external parties Loans to external parties are recognized initially at fair value, and subsequently at amortized cost using the effective interest method, less expected credit losses over the lifetime of the loan. Expected credit losses are determined using management’s estimate of the probability of default and the value of the underlying security. Loans to external parties are included within Other assets on the Consolidated Balance Sheet. Concentration of Credit Risk Cre dit risk arises from restricted cash, cash and cash equivalents as well as credit exposures to customers and loans to external parties. The Company analyses the credit risk for each of its new customers based on predefined requirements before standard payment and delivery terms and conditions are offered. An allo wance for doubtful accounts is provided for individual accounts. Cash investments are only placed with reputable financial institutions. Management believes that financial institutions that hold the Company’s deposits are financially credit worthy and, accordingly, minimal credit risk exists with respect to those balances. Fair value measurements The Company has no financial assets or liabilities that are measured at fair value on a recurring basis. The carrying amounts of the Company’s financial instruments, except for loans to external parties, approximate their fair values due to their short-term nature, The fair value of the loans to external parties is determined using unobservable market data (Level 3 inputs), that represent management ’ s estimate of current interest rates that a commercial lender would charge the borrowers. When certain triggering events occur, the Company is required to assess non-financial assets for impairment. When impaired, non-financial assets are written down to fair value. The Company uses valuation approaches that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing the asset in the principal or most advantageous market. Fair value is determined in accordance with ASC 820, Fair Value Measurement and is categorized as follows: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices); and Level 3: Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs). Inventories Inventories comprise finished goods which are stated at the lower of cost and net realizable value. Cost is determined using a first-in, first-out (“FIFO”), actual cost or weighted average cost basis. The cost of inventories includes the cost of manufacturing as charged by third parties and excludes borrowing costs. Net realizable value is the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation, and is based upon assumptions about future demand and market conditions. Impairments of inventory are not subsequently reversed. During the years ended March 31, 2019, 2020 and 2021, $0.3 million, $0.3 million a nd $0.7 m illion was recognized, respectively, as a charge in cost of sales as a result of the write-down of inventory to net realizable value. Prepaid expenses and other current assets Prepaid expenses and other current assets comprise prepaid taxes, prepaid expenses and current income tax assets. Property and equipment Property and equipment are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes all expenditure directly attributable to the acquisition of the items of property and equipment. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. Repairs and maintenance are charged to the Consolidated Statement of Income in the reporting period in which they are incurred. The cost of in-vehicle devices installed in vehicles (including installation and shipping costs) as well as the cost of uninstalled in-vehicle devices, are capitalized as property and equipment. The Company depreciates installed in-vehicle devices on a straight-line basis over their expected useful lives, commencing upon installation, wh ereas uninstalled in-vehicle devices are not depreciated until installed. The related depreciation expense is recorded as part of cost of sales in the Consolidated Statement of Income. Depreciation is calculated using the straight-line method to reduce the cost of the asset to its residual value over its estimated useful life, as follows: Equipment 1 - 8 years Motor vehicles 3 - 7 years Furniture, fixtures and equipment 1 - 10 years Computer equipment 1 - 7 years In-vehicle devices installed 1 - 6.5 years The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. Gains or losses on disposal or retirement are recognized within Other income/(expenses) in the Consolidated Statement of Income. Right-of-use assets are included in Property and Equipment on the Consolidated Balance Sheet. Leases The Company as a lessee The Company recognizes a right-of-use asset and a lease liability at the lease commencement date for all leases except for those that have a lease term of 12 months or less and do not contain a purchase option that is reasonably certain to be exercised. The lease payments associated with these leases are recognized as an expense on a straight-line basis over the lease term. Right-of use assets are initially measured at cost, which comprises the initial amount of the related lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred, less any lease incentives received. All of the Company’s leases which are capitalized are classified as operating leases. This means that the right-of-use asset is depreciated in such a manner, that together with the interest charge on the lease liability, the Company achieves a straight-line total lease expense over the lease period. Lease payments included in the measurement of the lease liability comprise the following: • fixed payments; and • lease payments in an optional renewal period if the Company is reasonably certain to exercise an extension option. The lease liability is measured at amortized cost using the relevant group entity’s incremental borrowing rate at inception of the lease. The lease liability is remeasured when the Company changes its assessment of whether an extension option will be exercised, when a termination notice is served, or when there are other changes to the terms of the lease such as rent concessions or an extension to the lease term that was not initially catered for in the lease agreemen t. When the lease liability is remeasured, a corresponding adjustment is made to the carrying amount of the right-of-use asset. The adjustment is recorded in the Consolidated Statement of Income once the carrying amount of the right-of-use asset has been reduced to zero. The Company presents right-of-use assets within property and equipment, and lease liabilities within accrued expenses and other liabilities, on the Consolidated Balance Sheet. Goodwill Goodwill is not amortized but is tested for possible impairment at least annually, or when circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. Goodwill is allocated to a reporting unit for the purpose of impairment testing. The carrying value of the reporting unit, to which goodwill has been allocated, is compared to its fair value, and a goodwill impairment charge is recognized for the amount (if any) by which the carrying value exceeds the fair value, limited to the amount of the goodwill. No impairments of goodwill existed as of the most recent testing date of March 31, 2021 or the previous testing date of March 31, 2020. The changes in the carrying value of goodwill during fiscal 2020 and fiscal 2021 are attributable only to foreign currency translation adjustments. The allocation of goodwill to reporting units is as follows (in thousands): As of March 31, 2020 2021 Central Services Organization $ 5,754 $ 6,913 Europe 8,106 8,993 Middle East and Australasia 4,364 4,364 Africa 19,699 23,668 $ 37,923 $ 43,938 Sensitivity of goodwill to impairment as of March 31, 2021 was as follows: Central Services Organization Africa Europe Middle East and Australasia Fair value of reporting unit exceeded its carrying amount by 558.7 % 403.9 % 38.6 % 119.5 % Post-tax discount rate used to determine fair value 14.7 % 14.7 % 9.8 % 8.0 % Growth rate used to extrapolate cash flow beyond the budget period 4.4 % 4.4 % 2.0 % 1.8 % The following mutually exclusive changes will result in nil headroom Post-tax discount rate applied to the expected cash flow projections 40.3 % 49.6 % 12.4 % 14.8 % Decrease in the cash flow projections of 81.7 % 80.2 % 27.7 % 54.5 % Although there were no impairments of goodwill as of March 31, 2021, significant judgement was exercised in determining the fair value of each reporting unit, especially in light of COVID-19, which has had and, we believe, will continue to have an adverse impact on global economies and financial markets. In particular, to the extent that anticipated new contracts do not materialize and the business strategy does not come to fruition, or key personnel are not retained, the forecasts on which the impairment tests were performed could be negatively impacted. Intangible assets Patents and trademarks Patents and trademarks acquired in a business combination are recognized at fair value at the acquisition date. Patents and trademarks have a finite useful life and are subsequently carried at cost less accumulated amortization and accumulated impairment losses. Amortization is calculated using the straight-line method to allocate the cost of patents and trademarks over their estimated useful lives which range from 3 to 20 years. Customer relationships Customer relationships acquired in a business combination are recognized at fair value at the acquisition date. Customer relationships have a finite useful life and are subsequently carried at cost less accumulated amortization and accumulated impairment losses. Amortization is calculated over the expected useful life of the customer relationship ranging from 2 to 15 years and reflects the pattern in which future economic benefits of the customer relationship are expected to be generated. The useful life principally reflects management’s view of the average economic life of the customer base and is assessed by reference to factors such as customer churn rates. Internal-use software and technology The Company capitalizes as intangible assets, internal-use software acquired or developed solely to meet the Company’s internal needs. Costs, excluding general and administrative costs, are capitalized from the date on which management implicitly or explicitly authorizes, or commits to fund, the project, and it is probable that the project will be completed and the software will perform the intended function (application development stage). All costs incurred during the preliminary development stage are expensed. Capitalization ceases when the project is substantially complete and the software is ready for its intended use. Costs, including annual licenses, associated with maintaining computer software programs, and training costs are expensed as incurred. Costs incurred for upgrades and enhancements (modifications to existing internal-use software that provides additional functionality) are capitalized during the application development sta ge. Software capitalized is amortized on a straight line basis over its estimated useful life ranging from 1 to 18 years, commencing on the date when the software is ready for its intended use. Computer software for external use Computer software for external use refers to the firmware that is developed by the Company for the devices and other hardware provided to its customers. The costs of developing firmware are expensed as incurred prior to the establishment of its technological feasibility, from which point the development costs are capitalized and recognized as intangible assets. For the periods presented, technological feasibility could only be demonstrated shortly before the release of the firmware, and as a result, the development costs that meet the requirements for capitalization are not material. Impairment of long-lived assets Intangible assets that are not ready for use are not subject to amortization but are assessed annually for impairment or more frequently if events or changes in circumstances indicate that they might be impaired. Long-lived assets that are subject to amortization or depreciation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An asset is written down immediately to its fair value if its carrying amount is greater than its future undiscounted cash flows. Recognized impairment losses are not reversed. For the purposes of assessing impairment, long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Impairment losses recognized during the years ended March 31, 2019, 2020 and 2021 were less than $0.1 million for each year. Common stock Incremental external costs directly attributable to the issuance of new shares or the exercise of stock options are shown in equity as a deduction, net of tax, from the proceeds . If a G roup company purchases the Company’s equity instruments (treasury stock), then the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to ordinary shareholders of the Company as treasury stock until the shares are canceled or reissued. If such ordinary shares are subsequently reissued, then any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to ordinary shareholders of the Company. MiX Telematics Investments Proprietary Ltd (“MiX Investments”), a wholly owned subsidiary of the Company, holds 53,816,750 of the Company’s ordinary shares of no par value. These shares are held as treasury stock. Share repurchases On Ma y 23, 2017, the Company ’ s Board of Directors approved a share repurchase program of up to R270 million (equivalent of $18.1 million as of March 31, 2021) under which the Company may repurchase its ordinary shares, including American Depositary Shares (“ADSs”). The Company may repurchase its shares from time to time at its discretion through open market transactions and block trades, based on ongoing assessments of the capital needs of the Company, the market price of its securities and general market conditions. This share repurchase program may be discontinued at any time by the Board of Directors, and the Company has no obligation to repurchase any amount of its securities under the program. The repurchase program will be funded out of existing cash resources. During the years ended March 31, 2019 and 2020 , the Company repurchased 9,157,695 and 16,856,001 shares, respectively, for an aggregate repu |
Credit risk related to accounts
Credit risk related to accounts receivables | 12 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Credit risk related to accounts receivables | Credit risk related to accounts receivables As of March 31, 2020 and 2021, the aging analysis of accounts receivables is as follows (in thousands): Gross Allowance for doubtful accounts Net 2020 Not past due $ 11,670 $ (366) $ 11,304 Past due by 1 to 30 days 7,309 (321) 6,988 Past due by 31 to 60 days 2,799 (158) 2,641 Past due by more than 60 days 5,924 (2,757) 3,167 Total $ 27,702 $ (3,602) $ 24,100 Gross Allowance for doubtful accounts Net 2021 Not past due $ 10,156 $ (513) $ 9,643 Past due by 1 to 30 days 4,769 (436) 4,333 Past due by 31 to 60 days 2,457 (259) 2,198 Past due by more than 60 days 7,458 (4,367) 3,091 Total $ 24,840 $ (5,575) $ 19,265 The movements in the allowance for doubtful accounts are as follows (in thousands): 2020 2021 Balance at April 1, $ 2,719 $ 3,602 Adjustment on initial application of ASC 326 301 — Restated balance at April 1, 3,020 3,602 Bad debt provision 3,941 2,961 Write-offs, net of recoveries* (2,655) (1,656) Foreign currency translation differences (704) 668 Balance at March 31, $ 3,602 $ 5,575 * Amounts written off are not subject to enforcement activity. The measurement of expected credit losses is a function of the probability of default, loss given default (i.e. the magnitude of the loss if there is default) and the exposure at default. The assessment of the probability given default and loss given default is based on historical data adjusted by relevant forward-looking information. The exposure at default is represented by the asset’s gross carrying amount at the reporting date. The Company considers a default to have occurred when a receivable is more than 120 days past due or information determined internally or obtained from external sources indicates that the customer is unlikely to pay its creditors, including the Company, in full. Amounts provided are generally written off when there is no expectation of recovering the amount, in accordance with the Company’s write-off policy. Overview of the Company’s exposure to credit risk from customers The maximum exposure to credit risk at the reporting date is the carrying value of each receivable and loan to external parties, net of impairment losses where relevant. As of March 31, 2020 and 2021, the Company has no significant concentration of credit risk, due to its spread of customers across various operations and geographical locations. The Company does not hold any collateral as security. Net accounts receivables as of March 31, 2020 and 2021 of $2.9 million an d $2.3 million, r espectively, ar e pledged as security for the Company’s overdraft facilities. |
Property and equipment
Property and equipment | 12 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, and equipment | Property and equipment Property and equipment comprises owned and right of use assets. The Company leases many assets including property, vehicles, machinery and IT equipment. The cost and accumulated depreciation of owned equipment are as follows (in thousands): As of March 31, 2020 2021 Owned equipment Equipment, vehicles and other $ 6,114 $ 6,877 In-vehicle devices 52,824 53,448 Less: accumulated depreciation and impairments (35,397) (42,955) Owned equipment, net $ 23,541 $ 17,370 Total depreciation expense related to owned equipment during the years ended March 31, 2019, 2020 and 2021 was $12.5 million , $16.1 million and $12.9 million, respectively. Depreciation expense related to in-vehicle devices is included in subscription cost of revenue. The cost and accumulated depreciation of right-of-use property and equipment are as follows (in thousands): As of March 31, 2020 2021 Right-of-use assets Property $ 7,724 $ 8,348 Equipment, vehicles and other 250 226 Less: accumulated depreciation (1,496) (2,481) Right of use property and equipment, net $ 6,478 $ 6,093 |
Intangible assets
Intangible assets | 12 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets | Intangible assets Intangible assets comprise the following (in thousands): As of March 31, 2020 As of March 31, 2021 Useful life (in years) Gross Carrying amount Accumulated amortization Net Gross Carrying amount Accumulated amortization Net Patents and trademarks 3 - 20 $ 76 $ (45) $ 31 $ 115 $ (82) $ 33 Customer relationships 2 - 15 2,600 (2,068) 532 2,687 (2,271) 416 Internal-use software, technology and other 1 - 18 26,508 (12,064) 14,444 35,618 (17,764) 17,854 Total $ 29,184 $ (14,177) $ 15,007 $ 38,420 $ (20,117) $ 18,303 For the years ended March 31, 2019, 2020 and 2021, amortization expense of $3.9 million, $3.8 million, and $3.7 million has been recognized, respectively. The weighted average amortization period of intangible assets purchased during the year ended March 31, 2020 and 2021 is 3 years and 1 year, respectively. As of March 31, 2020 and 2021, there was internal-use software in progress of $ 2.6 million, and $ 3.8 million, respectively. As of March 31, 2021, the estimated future amortization expense is as follows (in thousands): Years ending March 31, 2022 $ 5,055 2023 4,482 2024 3,756 2025 2,754 2026 1,721 Thereafter 535 Total $ 18,303 |
Other assets
Other assets | 12 Months Ended |
Mar. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other assets | Other assets The following is a summary of other assets (in thousands): As of March 31, 2020 2021 Deferred commissions $ 3,614 $ 3,687 Loans to external parties and other receivables 586 747 Total other assets $ 4,200 $ 4,434 Deferred commissions Deferred commissions arise from commissions paid to sales employees and external third parties to obtain contracts with customers, unless the amortization period is 12 months or less, in which instance it is expensed immediately. The following is a summary of the amortization expense (in thousands): As of March 31, 2020 2021 Amortization recognized during the year: $ (3,486) $ (3,533) – Cost of revenue (external commissions) (2,428) (2,552) – Sales and marketing (internal commissions) (1,058) (981) Loans to external parties The loans to external parties relate to Broad-based Black Economic Empowerment transactions entered to in South Africa. As of March 31, 2020 and March 31, 2021, the amortized cost of the loans to B lack Industrialists Group Property Management Company (Pty) Ltd ( “ BIG ” ) and HSW Management services CC ( “ HSW ” ) amounted to $0.5 million and $0.6 million, respectively. All the loans were originated during fiscal 2020, and are on off-market terms. No interest has been charged since origination. The imputed interest rate on the loans to BIG and HSW is 9.65% and 11.65% respectively. Imputed interest rate represents the interest rate that results from a process of approximation required when the presen t value of a loan must be estimated because an established exchange price is not determinable and the loan has no ready market, while effective interest rate is the rate of return implicit in the loan, that is, contractual interest rate adjusted for any net deferred loan fees or costs, premium, or discount existing at the origination of the loan. |
Accrued expenses and other liab
Accrued expenses and other liabilities | 12 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accrued expenses and other liabilities | Accrued expenses and other liabilities Accrued expenses comprise the following (in thousands): As of March 31, 2020 2021 Current: Product warranties $ 601 $ 605 Maintenance 357 609 Employee-related accruals 5,296 6,166 Lease liabilities 1,094 1,395 Accrued income tax payable 736 1,345 Accrued commissions* 1,760 2,199 Other accruals* 4,995 6,356 Total current $ 14,839 $ 18,675 Non-current: Lease liabilities $ 5,413 $ 4,895 Other liabilities 247 968 Total non-current $ 5,660 $ 5,863 * Due to the significance of accrued commissions, the amount is now disclosed separately; whereas in previous periods it was included in Other accruals. The disclosures as of March 31, 2020 have been revised to conform to the current period disclosures. Product warranties The Company provides warranties on certain products and undertakes to repair or replace items that fail to perform satisfactorily. Management estimates the related provision for future warranty claims based on historical warranty claim information, the product lifetime, as well as recent trends that might suggest that past cost information may differ from future claims. The table below provides details of the movement in the accrual in thousands: As of March 31, 2020 2021 Product warranties Opening balance $ 777 $ 616 Warranty expense 372 102 Utilized (409) (211) Foreign currency translation difference (124) 105 Balance as of March 31 $ 616 $ 612 Non-current portion (included in other liabilities) $ 15 $ 7 Current portion $ 601 $ 605 |
Deferred revenue
Deferred revenue | 12 Months Ended |
Mar. 31, 2021 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Deferred revenue | Deferred revenue The movement in deferred revenue is as following (in thousands): As of March 31, 2020 2021 Deferred revenue Opening balance $ 6,107 $ 5,077 Increases during the year 20,716 33,009 Reversed (recognized as revenue) (20,736) (33,210) Foreign currency translation difference (1,010) 912 Closing balance $ 5,077 $ 5,788 |
Leases
Leases | 12 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company leases property, office equipment and vehicles under operating leases. The lease terms vary between 1 month and 138 months, with many leases providing renewal rights and certain leases with annual escalations of up to 8% per annum. To the extent the Company is reasonably certain that it will exercise renewal options, such options have been included in the lease terms used for calculating the right-of-use assets and lease liabilities. Where lease terms are 12-months or less, and meet the criteria for short-term lease classification, no right-of-use asset and no lease liability are recognized. The components of lease cost are as follows (in thousands): As of March 31, 2019 2020 2021 Operating lease cost $ 1,228 $ 1,631 $ 1,657 Short-term lease cost 721 198 407 Total lease cost $ 1,949 $ 1,829 $ 2,064 Supplemental cash flow information and non-cash activity related to the Company’s operating leases are as follows (in thousands): As of March 31, 2019 2020 2021 Operating cash flow information: Cash payments included in the measurement of lease liabilities $ 1,270 $ 1,500 $ 1,540 Non-cash activity: Right-of-use assets obtained in exchange for lease obligations $ 815 $ 4,520 $ 110 Weighted-average remaining lease term - operating leases (months)* 36 46 38 Weighted-average discount rate - operating leases 5.4 % 7.2 % 7.3 % *Including expected renewals where appropriate. Maturities of lease liabilities as of March 31 were as follows (in thousands): 2022 $ 1,473 2023 1,171 2024 998 2025 938 2026 912 Thereafter 2,731 Total lease payments 8,223 Less: Imputed interest (1,933) Present value of lease liabilities $ 6,290 |
Income taxes
Income taxes | 12 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The following table presents domestic and foreign components of income/(loss) before income tax expense (in thousands): As of March 31, 2019 2020 2021 Domestic (South Africa) $ 28,767 $ 30,464 $ 14,443 Foreign (4,142) (9,648) 2,786 Income before income tax expense $ 24,625 $ 20,816 $ 17,229 The following is a summary of the Company’s provision for income taxes for the years ended March 31, 2019, 2020 and 2021: As of March 31, 2019 2020 2021 Current tax Domestic (South Africa) $ (5,620) $ (4,261) $ (5,768) Foreign federal — — (165) Foreign state (1,109) (978) (1,020) Total Current (6,729) (5,239) (6,953) Deferred tax Domestic (South Africa) (3,963) (4,744) 3,987 Foreign federal 115 55 83 Foreign state 762 99 249 Total deferred (3,086) (4,590) 4,319 Total income tax expense $ (9,815) $ (9,829) $ (2,634) The following table provides a reconciliation of the income tax expense calculated at the South African statutory tax rate, of 28%, to the income tax expense: As of March 31, 2019 2020 2021 Income before income tax expense $ 24,625 $ 20,816 $ 17,229 Tax at South African statutory rate of 28% 6,895 5,828 4,824 Tax effect of: – Income not subject to tax (41) — (35) – Non-deductible expenses 1 423 235 929 – Non-deductible/(non-taxable) foreign exchange movements 2 3,441 4,085 (3,401) – Investment in subsidiaries (37) 42 217 – Withholding tax 56 — 23 – Utilization of previously unrecognized tax losses 3 (385) (195) (252) – Foreign tax paid 4 272 623 425 – Foreign tax rate differential (290) (213) (241) – Recognition of previously unrecognized tax losses (262) (11) (73) – Tax losses not recognized 18 75 92 – Under-provision prior years 157 138 298 – Tax incentives in addition to cost incurred 5 (448) (897) (321) – Stock based compensation (113) — — – Transfer pricing imputation 6 65 21 – Imputation of controlled foreign company income 177 119 100 – Other (54) (65) 28 Income tax expense $ 9,815 $ 9,829 $ 2,634 1 These non-deductible expenses consist primarily of items of a capital nature and costs attributable to exempt income, primarily dividends from subsidiaries. 2 The non-deductible/(non-taxable) foreign exchange movements arise as a result of the Company’s internal loan structures. 3 The utilization of assessed losses arises mainly in Europe where historical assessed losses are being utilized. 4 The foreign tax paid relates primarily to withholding taxes on revenue earned in jurisdictions where the Company does not have a jurisdictional presence. 5 The tax incentives relate mainly to research and development allowances, as well as learnership allowances received in terms of the South African tax authorities. MiX Telematics International Proprietary Limited (“MiX International”), a subsidiary of the Company, is eligible for a 150% allowance for research and development spend in terms of section 11D of the South African Income Tax Act. During fiscal years prior to 2017, the additional 50% tax deduction was disallowed on certain projects because the South African Department of Science and Innovation (“DSI”) was of the view that the amounts claimed did not constitute qualifying expenditure. After a lengthy legal process, the DSI approved the additional deductions during fiscal 2020, resulting in the recognition of a tax benefit of $0.5 million for fiscal 2020 that previously was not considered probable. The Company’s weighted average tax rate is 15.3% (2020: 47.2%, 2019: 39.9%). The Company’s net deferred tax liabilities consist of the following (in thousands): As of March 31, 2020 2021 Deferred tax liabilities Capital allowances for tax purposes 4,141 3,494 Intangible assets 2,778 3,559 Prepaid expenses 164 133 Deferred foreign currency gains 8,402 6,186 Investment in subsidiaries 157 427 Deferred commissions 894 802 Lease assets 842 482 Other 79 202 Gross deferred tax liabilities 17,457 15,285 Set-off of deferred tax balances (6,021) (6,098) Net deferred tax liabilities 11,436 9,187 Deferred tax assets Deferred revenue 1,059 1,224 Capital allowances for tax purposes 1,137 823 Accruals 2,986 5,037 Tax losses 2,578 1,456 Stock based compensation 396 540 Deferred foreign currency losses 374 407 Recurring commission liability 169 186 Lease liabilities 913 552 Other 265 166 Gross deferred tax assets 9,877 10,391 Set-off of deferred tax balances (6,021) (6,098) Net deferred tax assets before valuation allowance 3,856 4,293 Less valuation allowance (748) (511) Net deferred tax assets 3,108 3,782 Net deferred tax liability (8,328) (5,405) The gross movement in net deferred tax assets/(liabilities) is as follows: Opening balance (5,977) (8,328) Adjustment on initial application of ASC 326 39 — Foreign currency translation 2,240 (1,415) Other comprehensive income (40) 19 Statement of Income charge (4,590) 4,319 Closing balance (8,328) (5,405) Recognition of deferred tax Deferred tax at year-end has been recognized using the following corporate tax rates: Region 2020 2021 South Africa 28 % 28 % Australia 30 % 30 % Brazil 34 % 34 % Romania 16 % 16 % Thailand 20 % 20 % Uganda 30 % 30 % United Arab Emirates — % — % United Kingdom 17 % 19 % United States of America 21 % 21 % Realization of deferred tax assets is dependent upon the generation of future taxable income, if any, the timing and amount of which are uncertain. As of March 31, 2020 and 2021, the Company believes that it is not more likely than not that deferred tax assets of $0.7 million and $0.5 million, respectively, will be realized in respect of cumulative tax losses amounting to $2.8 million and $ 2.0 million, respectively. Accordingly, the Company has recorded a valuation allowance on such deferred tax assets. For the years ended March 31, 2020, and 2021, the valuation allowance decreased by $0.1 million and $0.3 million primarily as a result of utilizing previously unrecognized tax losses. As at March 31, 2020 and 2021, the Company had tax loss carryforwards of $17.6 million and $11.7 million. respectively. The tax loss carryforwards can be carried forward indefinitely, except for tax losses of $0.2 million in Thailand, which expire between 2023 and 2025. |
Earnings per share
Earnings per share | 12 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share Basic Basic earnings per share is calculated by dividing the income attributable to ordinary shareholders of the parent by the weighted average number of ordinary shares in issue during the year. The net income and weighted average number of shares used in the calculation of basic and diluted earnings per share are as follows (in thousands, except per share data): As of March 31, 2019 2020 2021 Ordinary Shares: Income attributable to ordinary shareholders $ 14,810 $ 10,987 $ 14,595 Weighted average number of ordinary shares in issue 563,578 553,653 549,415 Basic earnings per share $ 0.03 $ 0.02 $ 0.03 American Depository Shares*: Income attributable to ordinary shareholders $ 14,810 $ 10,987 $ 14,595 Weighted average number of American Depository Shares in issue 22,543 22,146 21,977 Basic earnings per American Depository Share $ 0.66 $ 0.50 $ 0.66 * One American Depository Share is the equivalent of 25 ordinary shares. Diluted Diluted earnings per share is calculated by dividing the diluted income attributable to ordinary shareholders by the diluted weighted average number of ordinary shares in issue during the year. Stock options, retention shares and stock appreciation rights granted to employees under the TeliMatrix Group Executive Incentive Scheme and the MiX Telematics Long-Term Incentive Plan (“LTIP”) are considered to be potential ordinary shares. They have been included in the determination of diluted earnings per share if the required target share price or annual shareholder return hurdles (as applicable) would have been met based on the performance up to the reporting date, and to the extent to which they are dilutive. The performance share awards were not considered to be dilutive as the performance conditions were not met. As of March 31, 2019 2020 2021 Diluted income attributable to ordinary shareholders $ 14,810 $ 10,987 $ 14,595 Weighted average number of ordinary shares in issue 563,578 553,653 549,415 Adjusted for: – potentially dilutive effect of stock appreciation rights 16,245 12,560 9,872 – potentially dilutive effect of restricted share units — — 774 – potentially dilutive effect of stock options 3,918 1,666 562 Diluted weighted average number of ordinary shares in issue 583,741 567,879 560,624 Diluted earnings per share $ 0.03 $ 0.02 $ 0.03 American Depository Shares*: Diluted income attributable to ordinary shareholders $ 14,810 $ 10,987 $ 14,595 Diluted weighted average number of American Depository Shares in issue 23,350 22,715 22,425 Diluted earnings per American Depository Share $ 0.63 $ 0.48 $ 0.65 * One American Depository Share is the equivalent of 25 ordinary shares. |
Dividends
Dividends | 12 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Dividends | Dividends The following dividends were declared (in thousands): As of March 31, 2019 2020 2021 Dividends declared $ 4,914 $ 6,015 $ 5,367 |
Segment information
Segment information | 12 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment information | Segment informationThe Company has 6 reportable segments, which are based on the geographical location of the 5 Regional Sales Offices (“RSOs”) and also includes the Central Services Organization (“CSO”). CSO is the central services organization that wholesales products and services to RSOs who, in turn, interface with our end-customers, distributors and dealers. CSO is also responsible for the development of hardware and software platforms and provides common marketing, product management, technical and distribution support to each of the other reportable segments. CSO is a reportable segment because it produces discrete financial information which is reviewed by the chief operating decision maker (“CODM”) and has the ability to generate external revenues. The CODM has been identified as the Chief Executive Officer who makes strategic decisions. The performance of the reportable segments has been measured and evaluated by the CODM using Segment Adjusted EBITDA, which is a measure that uses net income, net interest income/(expense), foreign exchange gains or losses, stock–based compensation costs, restructuring costs, gains or losses on the disposal or impairments of long-lived assets and subsidiaries. Product development costs are capitalized and amortized and this amortization is excluded from Segment Adjusted EBITDA. Interest expense and amortization related to leases are also excluded from Segment Adjusted EBITDA. In determining Segment Adjusted EBITDA, the margin generated by CSO, net of any unrealized intercompany profit, is allocated to the geographic region where the external revenue is recorded by our RSOs. The costs remaining in CSO relate mainly to research and development of hardware and software platforms, common marketing, product management and technical and distribution support to each of the RSOs. Each RSO’s results therefore reflects the external revenue earned, as well as its performance before the remaining CSO and corporate costs allocations. The segment information provided to the CODM is as follows (in thousands): As of March 31, 2019 Subscription revenue 1 Hardware and other revenue 2 Total Segment Adjusted Regional Sales Offices Africa $ 70,503 $ 5,457 $ 75,960 $ 35,238 Europe 10,221 5,034 15,255 4,931 Americas 21,279 2,646 23,925 11,097 Middle East and Australasia 16,439 7,089 23,528 10,610 Brazil 4,654 322 4,976 2,007 Total Regional Sales Offices 123,096 20,548 143,644 63,883 Central Services Organization 54 7 61 (11,411) Total Segment Results $ 123,150 $ 20,555 $ 143,705 $ 52,472 1 Subscription revenue is recognized over time. 2 Hardware and other revenue is recognized at a point in time. As of March 31, 2020 Subscription revenue 1 Hardware and other revenue 2 Total revenue Segment Adjusted EBITDA Regional Sales Offices Africa $ 70,886 $ 5,870 $ 76,756 $ 33,103 Europe 11,682 3,345 15,027 5,603 Americas 22,322 2,207 24,529 10,370 Middle East and Australasia 17,389 5,741 23,130 11,031 Brazil 5,181 614 5,795 2,366 Total Regional Sales Offices 127,460 17,777 145,237 62,473 Central Services Organization 110 303 413 (9,175) Total Segment Results $ 127,570 $ 18,080 $ 145,650 $ 53,298 1 Subscription revenue is recognized over time. 2 Hardware and other revenue is recognized at a point in time. As of March 31, 2021 Subscription revenue 1 Hardware and other revenue 2 Total revenue Segment Adjusted EBITDA Regional Sales Offices Africa $ 62,453 $ 5,495 $ 67,948 $ 31,781 Europe 12,138 2,441 14,579 6,260 Americas 18,211 770 18,981 7,077 Middle East and Australasia 16,558 4,679 21,237 9,751 Brazil 3,922 142 4,064 1,495 Total Regional Sales Offices 113,282 13,527 126,809 56,364 Central Services Organization 69 16 85 (7,553) Total Segment Results $ 113,351 $ 13,543 $ 126,894 $ 48,811 1 Subscription revenue is recognized over time. 2 Hardware and other revenue is recognized at a point in time. The revenue from external parties reported to the Company’s CODM is recognized and measured in a manner consistent with that in the Consolidated Statement of Income. Revenue generated by the South African-based operating segments of the Company (i.e. Central Services Organization and Africa, excluding East Africa) to its local and foreign-based customers for fiscal 2019, 2020 and 2021, amounted to $74.6 million, $76.0 million and $67.1 mill ion, respectively. Revenue generated by the foreign-based segments (i.e. Europe, Americas, East Africa, Middle East, Brazil and Australasia) to its local and foreign-based customers for fiscal 2019, 2020 and 2021, amounted to $69.1 million, $69.7 million and $59.8 million. A reconciliation of the segment results to income before tax expense for the year is disclosed below (in thousands). As of March 31, 2019 2020 2021 Segment Adjusted EBITDA $ 52,472 $ 53,298 $ 48,811 Corporate and consolidation entries (8,631) (8,366) (8,879) Loss contingency 1 15 (233) — Expected credit losses 2 64 — — Operating lease costs 3 (988) (1,610) (1,652) Product development costs 4 (1,449) (1,363) (1,112) Depreciation and amortization (16,368) (19,972) (16,559) Impairment of long-lived assets (62) (6) (8) Stock-based compensation costs (511) (660) (1,273) (Increase)/decrease in restructuring costs 5 (221) 1 (1,055) Net profit/(loss) on sale of property and equipment 43 270 (13) Net foreign exchange gains/(losses) 28 (610) (959) Net interest income/(expense) 233 67 (72) Income before tax expense for the year $ 24,625 $ 20,816 $ 17,229 1 For segment reporting purposes, a loss contingency (51% probability), had been raised prior to fiscal 2019. As of March 31, 2020, the loss contingency was no longer needed because an outflow was considered remote. In order to reconcile Segment Adjusted EBITDA to net income before taxes, the increases/decreases to the loss contingency, recognized for segment reporting purposes, needed to be added/deducted. 2 For segment reporting purposes, in fiscal 2019 the allowance for doubtful accounts was determined using an expected credit loss model. From fiscal 2020, an expected credit loss model has been applied, as a result of the early adoption of ASC 326 Financial Instruments – Credit Losses , which is why there is no longer a reconciling item. 3 For the purposes of calculating Segment Adjusted EBITDA, operating leases have been capitalized, except for leases with a term of no more than 12 months or leases of low value assets. Where operating leases are capitalized for segment reporting purposes, the amortization of the right-of-use asset and the interest on the operating lease liability are excluded from the Segment Adjusted EBITDA. Therefore, in order to reconcile Segment Adjusted EBITDA to net income before taxes, the total lease expense in respect of operating leases needs to be deducted. 4 For segment reporting purposes, product development costs, which do not meet the capitalization requirements under ASC 730 Research and Development or under ASC 985 Software , are capitalized and amortized. The amortization is excluded from Segment Adjusted EBITDA. In order to reconcile Segment Adjusted EBITDA to net income before taxes, product development costs capitalized for segment reporting purposes need to be deducted. 5 During fiscal 2019, restructuring costs of $0.1 million were recognized in each of the Middle East and Australasia segment, and the Africa segment. During fiscal 2021, the Company incurred $1.1 millon of restructuring costs which comprise of employee termination benefits, as a result of measures to minimize the adverse economic and business effect of the COVID-19 pandemic and to re-align resources with the Company's current business outlook and cost structure. $0.7 million, $0.2 million, $0.1 million and $0.1 million of the restructuring costs related to the CSO, Africa, North America and Middle East and Australasia reporting segments, respectively. As of March 31, 2021, substantially all of the restructuring costs had been paid. Restructuring costs are included in Administration and other expenses in the Consolidated Statement of Income. Segment assets are not disclosed because such information is not reviewed by the CODM. The following table depicts the geographical location of the Company’s long-lived assets (in thousands) other than financial instruments, deferred commissions and deferred tax assets: As of March 31, 2020 2021 South Africa $ 56,250 $ 63,832 America 10,027 10,366 Europe 9,697 5,178 Middle East and Australia 5,559 5,474 Brazil 1,417 854 Total $ 82,950 $ 85,704 These assets are allocated based on the physical location of the asset. No single customer accounted for 10% or more of the Company’s total revenue in fiscal years 2019, 2020 and 2021. No single customer accounted for 10% or more of the Company’s accounts receivable as of fiscal years ended 2020 and 2021. |
Stock-based compensation plan
Stock-based compensation plan | 12 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based compensation plan | Stock-based compensation plan The Company has issued share incentives under two equity-classified incentive plans, the TeliMatrix Group Executive Incentive Scheme and the MiX Telematics Long-Term Incentive Plan (“LTIP”), to directors and certain key employees within the Company. Since the introduction of the LTIP during 2014, no further awards have been made in terms of the TeliMatrix Group Executive Incentive Scheme. The TeliMatrix Group Executive Incentive Scheme has come to an end with the last of the outstanding options being exercised during fiscal 2021. No options remain outstanding under the TeliMatrix Group Executive Incentive Scheme as of March 31, 2021. The LTIP provides for three types of grants to be issued, namely performance shares, restricted share units (“RSUs”) and stock appreciation rights (“SARs”). As of March 31, 2021, there were 47,090,000 s hares reserved for future issuance under the LTIP. The total stock-based compensation expense recognized during the years ended March 31, 2019, 2020 and 2021, was $0.5 million , $0.7 million and $1.3 million , respe ctively. Deferred tax benefits recognized on total stock-based compensation expense in the Statement of Income for the years ended March 31, 2019, 2020 and 2021, was $0.1 million, $0.4 million and $0.1 million, respectively. Tax benefits realized on awards exercised during the years ended March 31, 2019, 2020 and 2021, was $0.1 million, $0.2 million and $0.1 million, respectively. Stock options granted under the TeliMatrix Group Executive Incentive Scheme The options vested in tranches of 25% per annum, commencing on the second anniversary of the grant date and expired 6 years after the grant date (with the final tranche expiring on September 10, 2020). Vesting was contingent upon employment within the Company and an annual total shareholder return in excess of 10% being met, taking into account any dividends paid during the vesting period. The Company had no legal or constructive obligation to repurchase or settle the options in cash. Management estimated forfeiture to be approximately 5% . The following table summarizes the Company’s stock options for the year ended March 31, 2021: Number of Weighted- Weighted-Average Remaining Contractual Term (years) Aggregate Intrinsic Value*(in thousands) Outstanding as of April 1, 2020 3,500,000 28 Exercised (3,500,000) 28 Outstanding as of March 31, 2021 — — — $ — * The exercise price was denominated in South African cents. U.S. currency amounts are based on a ZAR:USD exchange rate of 14.9167 as of March 31, 2021. The total intrinsic value of stock options exercised during fiscal 2019 and 2021 was $2.86 million and $0.48 million, respectively. U.S. Dollar amounts are based on average ZAR:USD exchange rates for fiscal 2019 and 2021 of 13.7494 and 16.3724, respectively. No options were exercised during the year ended March 31, 2020. Stock appreciation rights granted under the LTIP Under the LTIP, SARs may be issued to certain directors and key employees. The exercise price of the SARs granted is equal to the closing market value of ordinary shares on the day preceding the date of grant. The SARs granted vest in tranches of 25% per annum, commencing on the second anniversary of the grant date and expire 6 years after the grant date. Vesting is contingent upon employment within the Company and an annual total shareholder return in excess of 10% being achieved, taking into account any dividends paid during the vesting period, being achieved. Management estimates forfeiture to be approximately 5%. Upon exercise, the Company will settle the value of the difference, between the closing market value of the ordinary shares on the day of settlement and the award price, (if positive), by delivering shares. The Company has no legal or constructive obligation to settle the SARs in cash. The following table summarizes the Company’s SARs for the year ended March 31, 2021: Number of Weighted- Weighted-Average Remaining Contractual Term (years) Aggregate Intrinsic Value* (in thousands) Outstanding as of April 1, 2020 32,943,750 35 Granted 11,200,000 40 Exercised (2,104,428) 21 Forfeited (1,471,405) 40 Outstanding as of March 31, 2021 40,567,917 37 3.29 Vested and expected to vest as of March 31, 2021 39,142,292 37 2.50 $ 7,107 Vested as of March 31, 2021 12,055,417 22 1.36 $ 3,804 * The exercise price is denominated in South African cents. U.S. currency amounts are based on a ZAR:USD exchange rate of 14.9167 as o f March 31, 2021. The weighted-average grant-date fair value of SARs granted during the years ended March 31, 2019, 2020 and 2021, was 28 U.S. cents, 21 U.S. cents and 16 U.S. cents, respectively. The grant-date fair value was determined using a combination of the Monte Carlo Simulation option pricing model and the Binomial Tree option pricing model. U.S. currency amounts are based on a ZAR:USD exchange rate of 14.9167 as of March 31, 2021. The total intrinsic value of SARs exercised during fiscal 2019, 2020 and 2021 was $0.70 million, $1.21 million, and $0.31 million, respectively. U.S. Dollar amounts are based on a ZAR:USD exchange rate of 14.9167 as of March 31, 2021. The following table summarizes the Company’s unvested SARs for the year ended March 31, 2021: Number of SARs Weighted- Average Grant-Date Fair Value in U.S. Cents* Unvested as of April 1, 2020 24,893,750 15 Granted 11,200,000 16 Vested (6,109,845) 9 Forfeited (1,471,405) 15 Unvested as of March 31, 2021 28,512,500 16 * The exercise price used to determine the grant date fair value is denominated in South African cents. U.S. currency amounts are based on a ZAR:USD exchange rate of 14.9167 as o f March 31, 2021. As of March 31, 2021, there was $2.03 million of unrecogn ized compensation cost related to unvested SARs. This amount is expected to be recognized over a weighted-average period of 4.18 years. Restricted share units granted under the LTIP Under the LTIP, RSUs may be issued to certain directors and key employees. The scheme rules allow for a maximum of 2 million RSUs to be granted in any financial year and for a maximum of 12 million RSUs to be granted in aggregate over the life of the plan. 2 million time-based RSUs were granted on June 1, 2020, and will vest in tranches of 50% per annum, commencing on the second anniversary of the grant date. Vesting is conditional upon the continued employment of the recipient with the Company. Management estimates forfeiture to be approximately 5%. Settlement will take place in the Company’s shares. The Company has no legal or constructive obligation to settle the RSUs in cash. The weighted average grant date fair value per RSU granted was 34 U.S. cents. U.S. currency amounts are based on a ZAR:USD exchange rate of 14.9167 as of March 31, 2021. The grant date fair value was determined by deducting the present value of expected dividends to be paid per share prior to vesting from the closing market price of the Company’s shares on the grant date. The unrecognized compensation cost related to unvested RSUs as of March 31, 2021 was $0.4 million, which will be recognized over a weighted average period of 2 years, which is also the weighted average remaining contractual period. |
Debt
Debt | 12 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of March 31, 2020 and 2021, debt comprises bank overdrafts of $2.4 million and $1.7 million, respectively. Details of undrawn facilities are shown below: As of March 31, Interest rate 2020 2021 Undrawn borrowing facilities at floating rates include: – Standard Bank Limited: Overdraft SA prime* less 1.2% $ 1,204 $ 2,616 Vehicle and asset finance SA prime* less 1.2% 474 570 Working capital facility SA prime* less 0.25% 1,395 1,676 – Nedbank Limited overdraft SA prime* less 2% 558 670 $ 3,631 $ 5,532 *South African prime interest rate As of March 31, 2020 and 2021, the South African prime interest rate w as 8.75% and 7.00%, respectively. The Standard Bank and Nedbank facilities have no fixed renewal date and are repayable on demand. The facility from Nedbank Limited is unsecured. |
Commitment and contingencies
Commitment and contingencies | 12 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies Capital commitments As of March 31, 2019, 2020 and 2021, the Company had approved, and contracted, capital commitments for property and equipment of $2.8 million, $1.8 million and $1.2 million, respectively; and for intangible assets of $1.3 million, $0.9 million and $1.3 million, respectively. Capital commitments will be funded out of a mixture of working capital and cash and cash equivalen ts. Contingencies Service agreement In terms of an amended network services agreement with Mobile Telephone Networks Proprietary Limited (“MTN”), MTN is entitled to claw back payments from MiX Telematics Africa Proprietary Limited, a subsidiary of the Company, in the event of early cancellation of the agreement or certain base connections not being maintained over the term of the agreement. No connection incentive s will be received in terms of the amended network services agreement. The maximum potential liability under the arrangement as of March 31, 2020 and 2021 was $1.9 million and $2.0 million, respectively. No loss is consider ed probable under this arrangement. Competition Commission of South Africa matter On April 15, 2019 the Competition Commission of South Africa (“Commission”) referred a matter to the Competition Tribunal of South Africa (“Tribunal”). The Commission contends that the Company and a number of its channel partners have engaged in market division. Should the Tribunal rule against MiX Telematics, the Company may be liable to an administrative penalty in terms of the Competition Act, No. 89 of 1998. The Company had cooperated fully with the Commission during its preliminary |
Retirement benefits
Retirement benefits | 12 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Retirement benefits | Retirement benefitsIt is the policy of the Company to provide retirement benefits to all its South African, United Kingdom, United States, Brazilian, Romanian and Australian employees. All these retirement benefits are defined contribution plans and are held in separate trustee-administered funds. These plans are funded by members as well as company contributions. The South African plan is subject to the Pension Funds Act of 1956, the UK plan is subject to the United Kingdom Pensions Act 2008 and the Australian plan is subject to the Superannuation Guarantee Administration Act of 1992. In Brazil, the Company contributes to a mandatory state social contribution plan known as Regime Geral de Previdência Social. In Romania there is a mandatory social security contribution paid to the state budget, as defined by the Pension Law (Law 263/2010) and the Fiscal Code (Law 227/2015). For the United States employees, a voluntary Internal Revenue Service section 401(k) tax-deferred defined contribution scheme is offered. The full extent of the Company’s liability, in respect of the retirement benefits offered, is the contributions made, which are charged to the Consolidated Statement of Income as they are incurred. The total Company contribution to such schemes for the years ended March 31, 2019, 2020 and 2021 were $2.1 million, $2.2 million and $1.9 million, respectively. |
Related party transactions
Related party transactions | 12 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related party transactions | Related party transactionsPrior to July 2019 the Company leased premises from TPF Investments Proprietary Limited (“TPF”), a company over which Robin Frew (non-executive Chairperson of the Company) exercised significant influence. Lease expenses of $0.5 million and $0.2 million were recognized during the years ended March 31, 2019 and 2020, respectively. During fiscal 2020 the Company acquired the property from TPF and sold it immediately to Black Industrialists Group Property Management Company (Pty) Ltd (“BIG”), a non-related party, as part of a Broad-Based Black Economic Empowerment transaction. The Company now leases the property from BIG. |
Subsequent events
Subsequent events | 12 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent events Other than the items below, the directors are not aware of any matter material or otherwise arising since March 31, 2021 and up to the date of this report, not otherwise dealt with herein. Dividend declared The Board of Directors declared in respect of the fourth quarter of fiscal 2021 which ended on March 31, 2021, a dividend o f 4 South African cents per ordinary share and 1 So uth African Rand per ADS that will be pai d on July 1, 2021. |
Exchange rates
Exchange rates | 12 Months Ended |
Mar. 31, 2021 | |
Foreign Currency [Abstract] | |
Exchange rates | Exchange rates The Company is subject to fluctuations in exchange rates between the ZAR and foreign currencies, primarily the U.S. Dollar and the British Pound Sterling. The following major rates of exchange were used in the preparation of the consolidated financial statements: As of March 31, 2019 2020 2021 USD:ZAR – closing 14.48 17.92 14.92 – average 13.75 14.78 16.37 USD:GBP – closing 0.77 0.81 0.73 – average 0.76 0.79 0.77 |
SEC Schedule, Article 12-09, Va
SEC Schedule, Article 12-09, Valuation and Qualifying Accounts | 12 Months Ended |
Mar. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II - Valuation and Qualifying Accounts (Amounts in thousands) Description Balance at beginning of the year Net additions / (decreases) - charged to costs and expenses Net additions / (decreases) - charged to other accounts 1 Deductions Balance at end of the year Year ended March 31, 2019 Allowance for doubtful accounts $ 1,482 $ 2,098 $ (289) $ (572) 2 $ 2,719 Deferred taxation valuation allowance 1,784 (244) (145) (385) 3 1,010 Year ended March 31, 2020 Allowance for doubtful accounts 2,719 3,941 (403) 4 (2,655) 2 3,602 Deferred taxation valuation allowance 1,010 64 (131) (195) 3 748 Year ended March 31, 2021 Allowance for doubtful accounts 3,602 2,961 670 (1,656) 2 5,577 Deferred taxation valuation allowance $ 748 $ 19 $ (4) $ (252) 3 $ 511 1 Foreign currency translation adjustments. 2 Amounts relate to write-offs of uncollectible accounts, net of recoveries. 3 Amounts relate to utilization of previously unrecognized tax losses. 4 Net amount comprises the effect of adopting ASU 2016-13 as of April 1, 2019, an increase of $0.3 million in the allowance, as well as a foreign currency translation gain of $0.7 million. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of preparation | The Company’s consolidated financial statements for the year ended March 31, 2021 are prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and should be read in conjunction with the accompanying notes thereto. |
Consolidation | All subsidiaries have been consolidated, including variable interest entities (“VIEs”) of which the Company is deemed to be the primary beneficiary. Inter-company transactions, balances and unrealized gains on transactions between group companies are eliminated. Unrealized losses are also eliminated except to the extent the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been adjusted to ensure consistency with the policies adopted by the Company. All subsidiaries have the same reporting dates as the Company. Non-controlling interests represent the non-controlling stockholders’ proportionate share of the net assets and results of operations of the Company’s subsidiaries. Non-controlling interests in the results and equity of subsidiaries are shown separately in the Consolidated Balance Sheet, Statement of Income, Statement of Comprehensive Income and Statement of Changes in Stockholders’ Equity, respectively. |
Use of estimates | Use of estimates The preparation of consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the amounts reported and disclosed. Significant estimates include, but are not limited to, allowances for doubtful accounts, the assessment of expected cash flows used in evaluating goodwill and long-lived assets for impairment, the amortization period for deferred commissions, the determination of useful lives of the Company’s customer relationships, contingencies, the classification of devices and other hardware as in-vehicle devices (equipment) versus inventory based on the future expectation of the different types of customer contracts, income and deferred taxes, unrecognized tax benefits and valuation allowances on deferred tax assets. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements. As of March 31, 2021, the global outbreak of COVID-19 has had and, we believe, will continue to have an adverse impact on global economies and financial markets. We have taken into account the impact of COVID-19 on expected credit losses to the extent possible. Our expected credit losses have increased as a result. We also considered the impact on future cash flows and weighted average cost of capital rates related to goodwill sensitivities and impairment assessments. However, future changes in economic conditions related to COVID-19 could have an impact on future estimates and judgements used. |
Revenue from contracts with customers | Revenue from contracts with customers Significant judgments Revenue is recognized upon transfer of control of distinct promised products and/or services to customers in an amount that reflects the consideration that the Company expects to receive in exchange for those products and/or services. The Company enters into contracts that include the supply of fleet and mobile asset management equipment. For such contracts, the Company utilizes significant judgment to determine whether control of the equipment has transferred to the customer, and in instances where it does, it recognizes revenue in accordance with Revenue from Contracts with Customers (“ASC 606”). When control of the equipment does not transfer to the customer, which is when legal title does not transfer to the customer, our judgement is that the customer does not have the right to direct the use of the equipment when the customer does not operate the equipment or make any significant decisions about its use. In these instances the Company uses the equipment to provide fleet and mobile asset management services to the customer. Accordingly, these arrangements, which comprise virtually all of the transactions in which legal title does not pass to the customer, are not within the scope of ASC 842, Leases (“ASC 842”). Instead, for such contracts we have concluded that they are service contracts comprising a single performance obligation, and revenue is recognized over time pursuant to ASC 606. Recognition and measurement The Company provides fleet and mobile asset management solutions to its customers, and its principal revenue streams are (1) Subscription and (2) Hardware and other. Subscription revenue is recognized over time and hardware and other revenue is recognized at a point-in-time. To provide services to customers, a device is required which collects and transmits information collected from the vehicle or other asset. Fleet customers may also obtain other items of hardware, virtually all of which are functionally-dependent on the device. Some customers obtain control of the device and other hardware (where legal title transfers to the customer); while other customers do not (where legal title remains with the Company). A contract arises on the acceptance of a customer’s purchase order, which is typically executed in writing. In instances where the customer obtains control of the device and other hardware, which is typically upon installation or delivery to the customer, the device, the other hardware, the installation thereof and the service are each accounted for as separate performance obligations. The total transaction price is allocated to each performance obligation using relative stand-alone selling prices. Revenue allocated to the device and other hardware is recognized upon delivery, and revenue allocated to installation is recognized once the installation is complete, since installation is completed within a day. Revenue related to the service performance obligation (subscription) is recognized on a straight-line basis over the expected contractual term, since we consistently deliver telematics services on a continuous basis over that period. In instances where the customer does not obtain control of the device and other hardware, which is functionally-dependent on the device, there is only a single performance obligation, namely the service. The customer is not able to direct the use of these items, and accordingly these contracts do not contain leases. In these instances, the devices and other hardware are used by the Company to provide the services. The total revenue from these contracts is recognized as subscription revenue on a straight-line basis over the expected contractual term, since we consistently deliver telematics services on a continuous basis over that period. Revenue is presented net of discounts, value added tax, returns and after eliminating sales within the Company. The Company distributes devices and other hardware to certain small fleet operators and consumers through distributors. Distributors act as agents and hardware revenue is only recognized when the distributor sells the hardware unit to the end customer. Once a unit is sold to a customer, the customer enters into a service agreement directly with the Company. The obligation to supply the service and the credit risk rests with the Company. The subscription revenue is recognized when the service is rendered. The Company also sells hardware to motor vehicle dealerships for fitment into their vehicle trading stock. These dealerships purchase the hardware from the Company and are considered to act as a principal in the contract because they obtain title to the hardware, bear the risks and rewards of ownership and accordingly control the hardware purchased. The buyer of the vehicle then enters into a service-only contract with the Company. Revenue is recognized upon sale of the hardware to the dealership and subscription revenue is recognized as the services are provided to the customer. The Company distributes devices and other hardware to enterprise fleet customers through dealers. Dealers are considered to act as a principal for the sale of hardware to the end customer, and revenue is recognized by the Company upon sale of the hardware unit to the dealer. Dealers are also considered to act as a principal for the provision of the service to end customers because, even though the dealers do not provide the service themselves, the dealers control the right to receive the service before that right is transferred to the end customer, the dealers have the primary responsibility for fulfilling the promise to provide the service to the end customer, and the dealers have full discretion in establishing the prices charged to the end customer. Accordingly, subscription revenue is recognized as the service is provided to the dealers. Contract liabilities (deferred revenue) Timing of revenue recognition may differ from the timing of invoicing customers or collecting payments from customers. Typically, corporate customers pay in arrears, while consumer customers pay in advance. When customers are invoiced in advance for subscription services that will be provided over periods of more than one month, or pay in advance of service periods of more than one month, deferred revenue liabilities, or contract liabilities, are recorded. In all other instances, the Company has a right to consideration for subscription services from customers in an amount that corresponds directly with the value to customers of the Company’s performance completed to date. Therefore, revenue is recognized for the amount to which the Company has a right to invoice. The future subscription services will be provided over varying periods from 1 to 60 months. Contracts for which the Company receives a payment for a time period which is more than 12 months in advance are considered to comprise a significant financing component. Interest expense is accrued on the deferred revenue liability . This results in the revenue being measured at the future value of the payments received. Deferred commissions Commissions incurred to acquire contracts are capitalized and amortized, unless the amortization period is 12 months or less. The commission capitalized is attributed to the specific performance obligations in the related contract. Commission is considered commensurate with respect to a particular contract when equivalent/comparable commission is payable upon the extension or renewal of such a contract or upon the customer entering into a new contract. To the extent commission capitalized is commensurate, the commission attributable to service will be amortized over the minimum contractual period or, if shorter, the expected life of the contract. To the extent it is not commensurate, the commission capitalized that is attributable to service is amortized over the expected life of the contract. Typically, with regard to month-to-month contracts, commission payable is not considered commensurate for such contracts because no commission is payable as and when the customer extends each month by not giving notice. Accordingly, commission incurred on such contracts that is attributable to service is amortized over the expected life of the contract taking account of expected extensions/renewals. Commission capitalized that is attributable to hardware or installation is amortized in full at the time the related hardware, or installation, revenue is recognized. Recurring commission is commission which is payable for each month the customer remains with the Company. The amount capitalized reflects the total commission payable over the minimum contractual period or, if shorter, the expected life of the contract, together with the effect of the time value of money, where significant. As of March 31, 2020 and 2021, deferred commissions amounted to $3.6 million and $3.7 mill ion respectively, which are included within Other assets on the Balance Sheet. |
Foreign currency | Foreign currency Functional and reporting currency Each subsidiary is consolidated by translating its assets, liabilities and results into the functional currency of its immediate parent company, and subsequently the consolidated position, determined in South African Rand, is translated into U.S. Dollars (reporting currency). Assets and liabilities are translated into U.S. Dollars using the exchange rates in effect at the balance sheet date. Equity items are translated at historical exchange rates, while income and expense items are translated using average exchange rates for the period. Foreign currency translation adjustments are reported in stockholders’ equity as a component of accumulated other comprehensive income/(loss) until disposal. Transactions and balances Transactions in foreign currencies are initially recorded by the Company and its subsidiaries in their respective functional currencies using the exchange rates at the dates of the transactions. Foreign currency monetary assets and liabilities are translated at exchange rates in effect at the balance sheet date. All resulting foreign exchange gains and losses are recognized in in Other income/(expense) in the Statement of Income, except for those gains and losses arising on long-term monetary assets held by a group entity in a foreign subsidiary for which settlement is neither planned nor anticipated within the foreseeable future, which forms part of the net investment of the foreign operation. These foreign exchange gains and losses are recognized as part of the foreign currency translation adjustments in accumulated other comprehensive income/(loss) until disposal. |
Cash and cash equivalents and Restricted cash | Cash and cash equivalents Cash and cash equivalents comprise cash on hand and deposits held on call with banks; all of which are available for use by the Company and have an original maturity of less than three months. Restricted cas h |
Accounts receivables and Allowance for doubtful accounts | Accounts receivable s Accounts receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. Since the terms of payment are not more than 12 months, accounts receivables are recognized initially at their transaction price. Subsequent to initial recognition, accounts receivables are measured at amortized cost using the effective interest method, less an allowance for doubtful accounts, which reflects expected credit losses . Allowance for doubtful accounts The allowance for doubtful accounts on accounts receivables is calculated by considering all relevant information, internal and external about the collectability of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts of future economic conditions to appropriately reflect the risk of losses over the remaining contractual lives of the assets. Historical loss rates, calculated as actual losses over a period as a percentage of revenue, are adjusted for current conditions and management’s expectations about future economic conditions. The allowance is measured on a collective basis where management groups their customers appropriately based on their credit risk characteristics. The allowance for doubtful accounts is a valuation account and the asset’s carrying amount is reduced and the amount of the loss is recognized in the Consolidated Statement of Income. Subse quent recoveries, if any, are credited to the allowance. A |
Loans to external parties | Loans to external parties Loans to external parties are recognized initially at fair value, and subsequently at amortized cost using the effective interest method, less expected credit losses over the lifetime of the loan. Expected credit losses are determined using management’s estimate of the probability of default and the value of the underlying security. Loans to external parties are included within Other assets on the Consolidated Balance Sheet. |
Concentration of Credit Risk | Concentration of Credit Risk Cre dit risk arises from restricted cash, cash and cash equivalents as well as credit exposures to customers and loans to external parties. The Company analyses the credit risk for each of its new customers based on predefined requirements before standard payment and delivery terms and conditions are offered. An allo wance for doubtful accounts is provided for individual accounts. |
Fair value measurements | Fair value measurements The Company has no financial assets or liabilities that are measured at fair value on a recurring basis. The carrying amounts of the Company’s financial instruments, except for loans to external parties, approximate their fair values due to their short-term nature, The fair value of the loans to external parties is determined using unobservable market data (Level 3 inputs), that represent management ’ s estimate of current interest rates that a commercial lender would charge the borrowers. When certain triggering events occur, the Company is required to assess non-financial assets for impairment. When impaired, non-financial assets are written down to fair value. The Company uses valuation approaches that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing the asset in the principal or most advantageous market. Fair value is determined in accordance with ASC 820, Fair Value Measurement and is categorized as follows: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices); and |
Inventories | Inventories Inventories comprise finished goods which are stated at the lower of cost and net realizable value. Cost is determined using a first-in, first-out (“FIFO”), actual cost or weighted average cost basis. The cost of inventories includes the cost of manufacturing as charged by third parties and excludes borrowing costs. Net realizable value is the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation, and is based upon assumptions about future demand and market conditions. Impairments of inventory are not subsequently reversed. |
Prepaid expenses and other current assets | Prepaid expenses and other current assets Prepaid expenses and other current assets comprise prepaid taxes, prepaid expenses and current income tax assets. |
Property and equipment | Property and equipment Property and equipment are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes all expenditure directly attributable to the acquisition of the items of property and equipment. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. Repairs and maintenance are charged to the Consolidated Statement of Income in the reporting period in which they are incurred. The cost of in-vehicle devices installed in vehicles (including installation and shipping costs) as well as the cost of uninstalled in-vehicle devices, are capitalized as property and equipment. The Company depreciates installed in-vehicle devices on a straight-line basis over their expected useful lives, commencing upon installation, wh ereas uninstalled in-vehicle devices are not depreciated until installed. The related depreciation expense is recorded as part of cost of sales in the Consolidated Statement of Income. Depreciation is calculated using the straight-line method to reduce the cost of the asset to its residual value over its estimated useful life, as follows: Equipment 1 - 8 years Motor vehicles 3 - 7 years Furniture, fixtures and equipment 1 - 10 years Computer equipment 1 - 7 years In-vehicle devices installed 1 - 6.5 years The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. Gains or losses on disposal or retirement are recognized within Other income/(expenses) in the Consolidated Statement of Income. |
Leases | Leases The Company as a lessee The Company recognizes a right-of-use asset and a lease liability at the lease commencement date for all leases except for those that have a lease term of 12 months or less and do not contain a purchase option that is reasonably certain to be exercised. The lease payments associated with these leases are recognized as an expense on a straight-line basis over the lease term. Right-of use assets are initially measured at cost, which comprises the initial amount of the related lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred, less any lease incentives received. All of the Company’s leases which are capitalized are classified as operating leases. This means that the right-of-use asset is depreciated in such a manner, that together with the interest charge on the lease liability, the Company achieves a straight-line total lease expense over the lease period. Lease payments included in the measurement of the lease liability comprise the following: • fixed payments; and • lease payments in an optional renewal period if the Company is reasonably certain to exercise an extension option. The lease liability is measured at amortized cost using the relevant group entity’s incremental borrowing rate at inception of the lease. The lease liability is remeasured when the Company changes its assessment of whether an extension option will be exercised, when a termination notice is served, or when there are other changes to the terms of the lease such as rent concessions or an extension to the lease term that was not initially catered for in the lease agreemen t. When the lease liability is remeasured, a corresponding adjustment is made to the carrying amount of the right-of-use asset. The adjustment is recorded in the Consolidated Statement of Income once the carrying amount of the right-of-use asset has been reduced to zero. The Company presents right-of-use assets within property and equipment, and lease liabilities within accrued expenses and other liabilities, on the Consolidated Balance Sheet. |
Goodwill | GoodwillGoodwill is not amortized but is tested for possible impairment at least annually, or when circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. Goodwill is allocated to a reporting unit for the purpose of impairment testing. The carrying value of the reporting unit, to which goodwill has been allocated, is compared to its fair value, and a goodwill impairment charge is recognized for the amount (if any) by which the carrying value exceeds the fair value, limited to the amount of the goodwill. |
Intangible assets | Intangible assets Patents and trademarks Patents and trademarks acquired in a business combination are recognized at fair value at the acquisition date. Patents and trademarks have a finite useful life and are subsequently carried at cost less accumulated amortization and accumulated impairment losses. Amortization is calculated using the straight-line method to allocate the cost of patents and trademarks over their estimated useful lives which range from 3 to 20 years. Customer relationships Customer relationships acquired in a business combination are recognized at fair value at the acquisition date. Customer relationships have a finite useful life and are subsequently carried at cost less accumulated amortization and accumulated impairment losses. Amortization is calculated over the expected useful life of the customer relationship ranging from 2 to 15 years and reflects the pattern in which future economic benefits of the customer relationship are expected to be generated. The useful life principally reflects management’s view of the average economic life of the customer base and is assessed by reference to factors such as customer churn rates. Internal-use software and technology The Company capitalizes as intangible assets, internal-use software acquired or developed solely to meet the Company’s internal needs. Costs, excluding general and administrative costs, are capitalized from the date on which management implicitly or explicitly authorizes, or commits to fund, the project, and it is probable that the project will be completed and the software will perform the intended function (application development stage). All costs incurred during the preliminary development stage are expensed. Capitalization ceases when the project is substantially complete and the software is ready for its intended use. Costs, including annual licenses, associated with maintaining computer software programs, and training costs are expensed as incurred. Costs incurred for upgrades and enhancements (modifications to existing internal-use software that provides additional functionality) are capitalized during the application development sta ge. Software capitalized is amortized on a straight line basis over its estimated useful life ranging from 1 to 18 years, commencing on the date when the software is ready for its intended use. Computer software for external use |
Impairment of long-lived assets | Impairment of long-lived assets Intangible assets that are not ready for use are not subject to amortization but are assessed annually for impairment or more frequently if events or changes in circumstances indicate that they might be impaired. Long-lived assets that are subject to amortization or depreciation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An asset is written down immediately to its fair value if its carrying amount is greater than its future undiscounted cash flows. Recognized impairment losses are not reversed. For the purposes of assessing impairment, long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. |
Common stock and Share repurchases | Common stock Incremental external costs directly attributable to the issuance of new shares or the exercise of stock options are shown in equity as a deduction, net of tax, from the proceeds . Share repurchases On Ma y 23, 2017, the Company ’ s Board of Directors approved a share repurchase program of up to R270 million (equivalent of $18.1 million as of March 31, 2021) under which the Company may repurchase its ordinary shares, including American Depositary Shares (“ADSs”). The Company may repurchase its shares from time to time at its discretion through open market transactions and block trades, based on ongoing assessments of the capital needs of the Company, the market price of its securities and general market conditions. This share repurchase program may be discontinued at any time by the Board of Directors, and the Company has no obligation to repurchase any amount of its securities under the program. The repurchase program will be funded out of existing cash resources. |
Taxation | Taxation Income taxes are accounted for under the asset and liability method. Income tax expense is recognized in the Consolidated Statement of Income, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. The Company uses the portfolio approach for releasing income tax effects from accumulated other comprehensive income. The current income tax charge is calculated on the basis of the tax laws and tax rates enacted by the reporting date in the countries where the Company and its subsidiaries operate and generate taxable income. Interest, and penalties, incurred on the underpayment of income taxes is classified as interest expense, and administration expenses, respectively. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax is measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Valuation allowances are provided when necessary to reduce deferred tax assets to the extent it is more likely than not that some portion of the deferred tax asset will not be realized. Management periodically evaluates its tax positions with respect to situations in which applicable tax regulation is subject to interpretation. For uncertainties in income tax positions if it is more likely than not that some tax benefit will be sustained based on the technical merits of the position, then the tax benefit recognized is the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. If it is not more likely than not that some tax benefit will be sustained, then zero tax benefit is recognized. There were no material uncertain tax positions as of March 31, 2020 and 2021. Deferred tax liabilities arising on investments in domestic subsidiaries are not recognized to the extent that the investment can be recovered on a tax-free basis; and on investments in foreign subsidiaries to the extent that the undistributed earnings will be invested indefinitely or will be remitted in a tax-free liquidation. |
Stock-based compensation | Stock-based compensation The Company operates various stock-based compensation plans, under which the entity receives services from employees as consideration for equity instruments of the Company. Settlement has taken place out of a fresh issue of shares. The equity instruments that may be granted in terms of the plans include stock options, retention shares, performance shares and stock appreciation rights, all of which entitle the holder to obtain shares in the Company. The fair value, determined at grant date, of the equity instruments granted is recognized as an expense over the vesting period, taking expected forfeiture into account, with a corresponding credit to additional paid-in capital. At the end of each reporting period, the Company revises its estimate of the number of equity instruments that are expected to vest, using historical and current information, and recognizes the impact of any revisions in the Consolidated Statement of Income, with a corresponding adjustment to additional paid-in capital. Expected forfeitures relating to service conditions are estimated to be 5%. |
Advertising | AdvertisingAdvertising costs are expensed as incurred and are classified as sales and marketing expense on the Consolidated Statement of Income. |
Recent accounting pronouncements | Recent accounting pronouncements None of the accounting pronouncements required to be applied by the Company for the first time for the year ended 31 March 2021 had a significant financial reporting impact . In addition, new accounting pronouncements issued by 31 March 2021, but not yet effective for the Company, are not expected to have a significant financial reporting impact. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Cumulative Currency Translation Adjustments | The movement in the foreign currency translation adjustments is as follows (in thousands): As of March 31, 2020 2021 Cumulative foreign currency translation adjustments, beginning of year $ 2,115 $ (11,070) Adjustment on initial application of ASC 326 Financial Instruments – Credit Losses as of April 1, 2019 (22) — Foreign currency translation (losses)/gains for the year, net of tax (13,163) 12,994 Cumulative foreign currency translation adjustments, end of year $ (11,070) $ 1,924 |
Schedule of Property and Equipment | Depreciation is calculated using the straight-line method to reduce the cost of the asset to its residual value over its estimated useful life, as follows: Equipment 1 - 8 years Motor vehicles 3 - 7 years Furniture, fixtures and equipment 1 - 10 years Computer equipment 1 - 7 years In-vehicle devices installed 1 - 6.5 years The cost and accumulated depreciation of owned equipment are as follows (in thousands): As of March 31, 2020 2021 Owned equipment Equipment, vehicles and other $ 6,114 $ 6,877 In-vehicle devices 52,824 53,448 Less: accumulated depreciation and impairments (35,397) (42,955) Owned equipment, net $ 23,541 $ 17,370 |
Goodwill Allocation and Sensitivity by Reporting Unit | The allocation of goodwill to reporting units is as follows (in thousands): As of March 31, 2020 2021 Central Services Organization $ 5,754 $ 6,913 Europe 8,106 8,993 Middle East and Australasia 4,364 4,364 Africa 19,699 23,668 $ 37,923 $ 43,938 Sensitivity of goodwill to impairment as of March 31, 2021 was as follows: Central Services Organization Africa Europe Middle East and Australasia Fair value of reporting unit exceeded its carrying amount by 558.7 % 403.9 % 38.6 % 119.5 % Post-tax discount rate used to determine fair value 14.7 % 14.7 % 9.8 % 8.0 % Growth rate used to extrapolate cash flow beyond the budget period 4.4 % 4.4 % 2.0 % 1.8 % The following mutually exclusive changes will result in nil headroom Post-tax discount rate applied to the expected cash flow projections 40.3 % 49.6 % 12.4 % 14.8 % Decrease in the cash flow projections of 81.7 % 80.2 % 27.7 % 54.5 % |
Credit risk related to accoun_2
Credit risk related to accounts receivables (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Schedule of Aging Analysis of Accounts Receivables | As of March 31, 2020 and 2021, the aging analysis of accounts receivables is as follows (in thousands): Gross Allowance for doubtful accounts Net 2020 Not past due $ 11,670 $ (366) $ 11,304 Past due by 1 to 30 days 7,309 (321) 6,988 Past due by 31 to 60 days 2,799 (158) 2,641 Past due by more than 60 days 5,924 (2,757) 3,167 Total $ 27,702 $ (3,602) $ 24,100 Gross Allowance for doubtful accounts Net 2021 Not past due $ 10,156 $ (513) $ 9,643 Past due by 1 to 30 days 4,769 (436) 4,333 Past due by 31 to 60 days 2,457 (259) 2,198 Past due by more than 60 days 7,458 (4,367) 3,091 Total $ 24,840 $ (5,575) $ 19,265 |
Schedule of Movements in the Allowance for Doubtful Accounts | The movements in the allowance for doubtful accounts are as follows (in thousands): 2020 2021 Balance at April 1, $ 2,719 $ 3,602 Adjustment on initial application of ASC 326 301 — Restated balance at April 1, 3,020 3,602 Bad debt provision 3,941 2,961 Write-offs, net of recoveries* (2,655) (1,656) Foreign currency translation differences (704) 668 Balance at March 31, $ 3,602 $ 5,575 * Amounts written off are not subject to enforcement activity. |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Depreciation is calculated using the straight-line method to reduce the cost of the asset to its residual value over its estimated useful life, as follows: Equipment 1 - 8 years Motor vehicles 3 - 7 years Furniture, fixtures and equipment 1 - 10 years Computer equipment 1 - 7 years In-vehicle devices installed 1 - 6.5 years The cost and accumulated depreciation of owned equipment are as follows (in thousands): As of March 31, 2020 2021 Owned equipment Equipment, vehicles and other $ 6,114 $ 6,877 In-vehicle devices 52,824 53,448 Less: accumulated depreciation and impairments (35,397) (42,955) Owned equipment, net $ 23,541 $ 17,370 |
Schedule of Right-of-use Property and Equipment | The cost and accumulated depreciation of right-of-use property and equipment are as follows (in thousands): As of March 31, 2020 2021 Right-of-use assets Property $ 7,724 $ 8,348 Equipment, vehicles and other 250 226 Less: accumulated depreciation (1,496) (2,481) Right of use property and equipment, net $ 6,478 $ 6,093 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets comprise the following (in thousands): As of March 31, 2020 As of March 31, 2021 Useful life (in years) Gross Carrying amount Accumulated amortization Net Gross Carrying amount Accumulated amortization Net Patents and trademarks 3 - 20 $ 76 $ (45) $ 31 $ 115 $ (82) $ 33 Customer relationships 2 - 15 2,600 (2,068) 532 2,687 (2,271) 416 Internal-use software, technology and other 1 - 18 26,508 (12,064) 14,444 35,618 (17,764) 17,854 Total $ 29,184 $ (14,177) $ 15,007 $ 38,420 $ (20,117) $ 18,303 |
Schedule of Estimated Future Amortization Expense | As of March 31, 2021, the estimated future amortization expense is as follows (in thousands): Years ending March 31, 2022 $ 5,055 2023 4,482 2024 3,756 2025 2,754 2026 1,721 Thereafter 535 Total $ 18,303 |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of Other Assets | The following is a summary of other assets (in thousands): As of March 31, 2020 2021 Deferred commissions $ 3,614 $ 3,687 Loans to external parties and other receivables 586 747 Total other assets $ 4,200 $ 4,434 |
Schedule of Deferred Commissions | The following is a summary of the amortization expense (in thousands): As of March 31, 2020 2021 Amortization recognized during the year: $ (3,486) $ (3,533) – Cost of revenue (external commissions) (2,428) (2,552) – Sales and marketing (internal commissions) (1,058) (981) |
Accrued expenses and other li_2
Accrued expenses and other liabilities (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses comprise the following (in thousands): As of March 31, 2020 2021 Current: Product warranties $ 601 $ 605 Maintenance 357 609 Employee-related accruals 5,296 6,166 Lease liabilities 1,094 1,395 Accrued income tax payable 736 1,345 Accrued commissions* 1,760 2,199 Other accruals* 4,995 6,356 Total current $ 14,839 $ 18,675 Non-current: Lease liabilities $ 5,413 $ 4,895 Other liabilities 247 968 Total non-current $ 5,660 $ 5,863 * Due to the significance of accrued commissions, the amount is now disclosed separately; whereas in previous periods it was included in Other accruals. The disclosures as of March 31, 2020 have been revised to conform to the current period disclosures. |
Schedule of Other Liabilities | Accrued expenses comprise the following (in thousands): As of March 31, 2020 2021 Current: Product warranties $ 601 $ 605 Maintenance 357 609 Employee-related accruals 5,296 6,166 Lease liabilities 1,094 1,395 Accrued income tax payable 736 1,345 Accrued commissions* 1,760 2,199 Other accruals* 4,995 6,356 Total current $ 14,839 $ 18,675 Non-current: Lease liabilities $ 5,413 $ 4,895 Other liabilities 247 968 Total non-current $ 5,660 $ 5,863 * Due to the significance of accrued commissions, the amount is now disclosed separately; whereas in previous periods it was included in Other accruals. The disclosures as of March 31, 2020 have been revised to conform to the current period disclosures. |
Schedule of Product Warranties | The table below provides details of the movement in the accrual in thousands: As of March 31, 2020 2021 Product warranties Opening balance $ 777 $ 616 Warranty expense 372 102 Utilized (409) (211) Foreign currency translation difference (124) 105 Balance as of March 31 $ 616 $ 612 Non-current portion (included in other liabilities) $ 15 $ 7 Current portion $ 601 $ 605 |
Deferred revenue (Tables)
Deferred revenue (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Movement in Deferred Revenue | The movement in deferred revenue is as following (in thousands): As of March 31, 2020 2021 Deferred revenue Opening balance $ 6,107 $ 5,077 Increases during the year 20,716 33,009 Reversed (recognized as revenue) (20,736) (33,210) Foreign currency translation difference (1,010) 912 Closing balance $ 5,077 $ 5,788 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of Lease Cost and Supplemental Cash Flow Information and Non-Cash Activity | The components of lease cost are as follows (in thousands): As of March 31, 2019 2020 2021 Operating lease cost $ 1,228 $ 1,631 $ 1,657 Short-term lease cost 721 198 407 Total lease cost $ 1,949 $ 1,829 $ 2,064 Supplemental cash flow information and non-cash activity related to the Company’s operating leases are as follows (in thousands): As of March 31, 2019 2020 2021 Operating cash flow information: Cash payments included in the measurement of lease liabilities $ 1,270 $ 1,500 $ 1,540 Non-cash activity: Right-of-use assets obtained in exchange for lease obligations $ 815 $ 4,520 $ 110 Weighted-average remaining lease term - operating leases (months)* 36 46 38 Weighted-average discount rate - operating leases 5.4 % 7.2 % 7.3 % *Including expected renewals where appropriate. |
Schedule of Future Minimum Lease Payments Under Non-Cancellable Operating Leases | Maturities of lease liabilities as of March 31 were as follows (in thousands): 2022 $ 1,473 2023 1,171 2024 998 2025 938 2026 912 Thereafter 2,731 Total lease payments 8,223 Less: Imputed interest (1,933) Present value of lease liabilities $ 6,290 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Before Income Tax Expense | The following table presents domestic and foreign components of income/(loss) before income tax expense (in thousands): As of March 31, 2019 2020 2021 Domestic (South Africa) $ 28,767 $ 30,464 $ 14,443 Foreign (4,142) (9,648) 2,786 Income before income tax expense $ 24,625 $ 20,816 $ 17,229 |
Summary of Income Tax Expense | The following is a summary of the Company’s provision for income taxes for the years ended March 31, 2019, 2020 and 2021: As of March 31, 2019 2020 2021 Current tax Domestic (South Africa) $ (5,620) $ (4,261) $ (5,768) Foreign federal — — (165) Foreign state (1,109) (978) (1,020) Total Current (6,729) (5,239) (6,953) Deferred tax Domestic (South Africa) (3,963) (4,744) 3,987 Foreign federal 115 55 83 Foreign state 762 99 249 Total deferred (3,086) (4,590) 4,319 Total income tax expense $ (9,815) $ (9,829) $ (2,634) |
Reconciliation of Income Tax Expense | The following table provides a reconciliation of the income tax expense calculated at the South African statutory tax rate, of 28%, to the income tax expense: As of March 31, 2019 2020 2021 Income before income tax expense $ 24,625 $ 20,816 $ 17,229 Tax at South African statutory rate of 28% 6,895 5,828 4,824 Tax effect of: – Income not subject to tax (41) — (35) – Non-deductible expenses 1 423 235 929 – Non-deductible/(non-taxable) foreign exchange movements 2 3,441 4,085 (3,401) – Investment in subsidiaries (37) 42 217 – Withholding tax 56 — 23 – Utilization of previously unrecognized tax losses 3 (385) (195) (252) – Foreign tax paid 4 272 623 425 – Foreign tax rate differential (290) (213) (241) – Recognition of previously unrecognized tax losses (262) (11) (73) – Tax losses not recognized 18 75 92 – Under-provision prior years 157 138 298 – Tax incentives in addition to cost incurred 5 (448) (897) (321) – Stock based compensation (113) — — – Transfer pricing imputation 6 65 21 – Imputation of controlled foreign company income 177 119 100 – Other (54) (65) 28 Income tax expense $ 9,815 $ 9,829 $ 2,634 1 These non-deductible expenses consist primarily of items of a capital nature and costs attributable to exempt income, primarily dividends from subsidiaries. 2 The non-deductible/(non-taxable) foreign exchange movements arise as a result of the Company’s internal loan structures. 3 The utilization of assessed losses arises mainly in Europe where historical assessed losses are being utilized. 4 The foreign tax paid relates primarily to withholding taxes on revenue earned in jurisdictions where the Company does not have a jurisdictional presence. |
Schedule of Deferred Tax Assets and Liabilities | The Company’s net deferred tax liabilities consist of the following (in thousands): As of March 31, 2020 2021 Deferred tax liabilities Capital allowances for tax purposes 4,141 3,494 Intangible assets 2,778 3,559 Prepaid expenses 164 133 Deferred foreign currency gains 8,402 6,186 Investment in subsidiaries 157 427 Deferred commissions 894 802 Lease assets 842 482 Other 79 202 Gross deferred tax liabilities 17,457 15,285 Set-off of deferred tax balances (6,021) (6,098) Net deferred tax liabilities 11,436 9,187 Deferred tax assets Deferred revenue 1,059 1,224 Capital allowances for tax purposes 1,137 823 Accruals 2,986 5,037 Tax losses 2,578 1,456 Stock based compensation 396 540 Deferred foreign currency losses 374 407 Recurring commission liability 169 186 Lease liabilities 913 552 Other 265 166 Gross deferred tax assets 9,877 10,391 Set-off of deferred tax balances (6,021) (6,098) Net deferred tax assets before valuation allowance 3,856 4,293 Less valuation allowance (748) (511) Net deferred tax assets 3,108 3,782 Net deferred tax liability (8,328) (5,405) The gross movement in net deferred tax assets/(liabilities) is as follows: Opening balance (5,977) (8,328) Adjustment on initial application of ASC 326 39 — Foreign currency translation 2,240 (1,415) Other comprehensive income (40) 19 Statement of Income charge (4,590) 4,319 Closing balance (8,328) (5,405) |
Schedule of Corporate Tax Rates | Deferred tax at year-end has been recognized using the following corporate tax rates: Region 2020 2021 South Africa 28 % 28 % Australia 30 % 30 % Brazil 34 % 34 % Romania 16 % 16 % Thailand 20 % 20 % Uganda 30 % 30 % United Arab Emirates — % — % United Kingdom 17 % 19 % United States of America 21 % 21 % |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Basic Earnings Per Share | The net income and weighted average number of shares used in the calculation of basic and diluted earnings per share are as follows (in thousands, except per share data): As of March 31, 2019 2020 2021 Ordinary Shares: Income attributable to ordinary shareholders $ 14,810 $ 10,987 $ 14,595 Weighted average number of ordinary shares in issue 563,578 553,653 549,415 Basic earnings per share $ 0.03 $ 0.02 $ 0.03 American Depository Shares*: Income attributable to ordinary shareholders $ 14,810 $ 10,987 $ 14,595 Weighted average number of American Depository Shares in issue 22,543 22,146 21,977 Basic earnings per American Depository Share $ 0.66 $ 0.50 $ 0.66 * One American Depository Share is the equivalent of 25 ordinary shares. |
Schedule of Diluted Earnings Per Share | As of March 31, 2019 2020 2021 Diluted income attributable to ordinary shareholders $ 14,810 $ 10,987 $ 14,595 Weighted average number of ordinary shares in issue 563,578 553,653 549,415 Adjusted for: – potentially dilutive effect of stock appreciation rights 16,245 12,560 9,872 – potentially dilutive effect of restricted share units — — 774 – potentially dilutive effect of stock options 3,918 1,666 562 Diluted weighted average number of ordinary shares in issue 583,741 567,879 560,624 Diluted earnings per share $ 0.03 $ 0.02 $ 0.03 American Depository Shares*: Diluted income attributable to ordinary shareholders $ 14,810 $ 10,987 $ 14,595 Diluted weighted average number of American Depository Shares in issue 23,350 22,715 22,425 Diluted earnings per American Depository Share $ 0.63 $ 0.48 $ 0.65 * One American Depository Share is the equivalent of 25 ordinary shares. |
Dividends (Tables)
Dividends (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of Dividends Declared | The following dividends were declared (in thousands): As of March 31, 2019 2020 2021 Dividends declared $ 4,914 $ 6,015 $ 5,367 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The segment information provided to the CODM is as follows (in thousands): As of March 31, 2019 Subscription revenue 1 Hardware and other revenue 2 Total Segment Adjusted Regional Sales Offices Africa $ 70,503 $ 5,457 $ 75,960 $ 35,238 Europe 10,221 5,034 15,255 4,931 Americas 21,279 2,646 23,925 11,097 Middle East and Australasia 16,439 7,089 23,528 10,610 Brazil 4,654 322 4,976 2,007 Total Regional Sales Offices 123,096 20,548 143,644 63,883 Central Services Organization 54 7 61 (11,411) Total Segment Results $ 123,150 $ 20,555 $ 143,705 $ 52,472 1 Subscription revenue is recognized over time. 2 Hardware and other revenue is recognized at a point in time. As of March 31, 2020 Subscription revenue 1 Hardware and other revenue 2 Total revenue Segment Adjusted EBITDA Regional Sales Offices Africa $ 70,886 $ 5,870 $ 76,756 $ 33,103 Europe 11,682 3,345 15,027 5,603 Americas 22,322 2,207 24,529 10,370 Middle East and Australasia 17,389 5,741 23,130 11,031 Brazil 5,181 614 5,795 2,366 Total Regional Sales Offices 127,460 17,777 145,237 62,473 Central Services Organization 110 303 413 (9,175) Total Segment Results $ 127,570 $ 18,080 $ 145,650 $ 53,298 1 Subscription revenue is recognized over time. 2 Hardware and other revenue is recognized at a point in time. As of March 31, 2021 Subscription revenue 1 Hardware and other revenue 2 Total revenue Segment Adjusted EBITDA Regional Sales Offices Africa $ 62,453 $ 5,495 $ 67,948 $ 31,781 Europe 12,138 2,441 14,579 6,260 Americas 18,211 770 18,981 7,077 Middle East and Australasia 16,558 4,679 21,237 9,751 Brazil 3,922 142 4,064 1,495 Total Regional Sales Offices 113,282 13,527 126,809 56,364 Central Services Organization 69 16 85 (7,553) Total Segment Results $ 113,351 $ 13,543 $ 126,894 $ 48,811 1 Subscription revenue is recognized over time. 2 Hardware and other revenue is recognized at a point in time. |
Reconciliation of Segment Results to Income Before Tax | A reconciliation of the segment results to income before tax expense for the year is disclosed below (in thousands). As of March 31, 2019 2020 2021 Segment Adjusted EBITDA $ 52,472 $ 53,298 $ 48,811 Corporate and consolidation entries (8,631) (8,366) (8,879) Loss contingency 1 15 (233) — Expected credit losses 2 64 — — Operating lease costs 3 (988) (1,610) (1,652) Product development costs 4 (1,449) (1,363) (1,112) Depreciation and amortization (16,368) (19,972) (16,559) Impairment of long-lived assets (62) (6) (8) Stock-based compensation costs (511) (660) (1,273) (Increase)/decrease in restructuring costs 5 (221) 1 (1,055) Net profit/(loss) on sale of property and equipment 43 270 (13) Net foreign exchange gains/(losses) 28 (610) (959) Net interest income/(expense) 233 67 (72) Income before tax expense for the year $ 24,625 $ 20,816 $ 17,229 1 For segment reporting purposes, a loss contingency (51% probability), had been raised prior to fiscal 2019. As of March 31, 2020, the loss contingency was no longer needed because an outflow was considered remote. In order to reconcile Segment Adjusted EBITDA to net income before taxes, the increases/decreases to the loss contingency, recognized for segment reporting purposes, needed to be added/deducted. 2 For segment reporting purposes, in fiscal 2019 the allowance for doubtful accounts was determined using an expected credit loss model. From fiscal 2020, an expected credit loss model has been applied, as a result of the early adoption of ASC 326 Financial Instruments – Credit Losses , which is why there is no longer a reconciling item. 3 For the purposes of calculating Segment Adjusted EBITDA, operating leases have been capitalized, except for leases with a term of no more than 12 months or leases of low value assets. Where operating leases are capitalized for segment reporting purposes, the amortization of the right-of-use asset and the interest on the operating lease liability are excluded from the Segment Adjusted EBITDA. Therefore, in order to reconcile Segment Adjusted EBITDA to net income before taxes, the total lease expense in respect of operating leases needs to be deducted. 4 For segment reporting purposes, product development costs, which do not meet the capitalization requirements under ASC 730 Research and Development or under ASC 985 Software , are capitalized and amortized. The amortization is excluded from Segment Adjusted EBITDA. In order to reconcile Segment Adjusted EBITDA to net income before taxes, product development costs capitalized for segment reporting purposes need to be deducted. 5 During fiscal 2019, restructuring costs of $0.1 million were recognized in each of the Middle East and Australasia segment, and the Africa segment. During fiscal 2021, the Company incurred $1.1 millon of restructuring costs which comprise of employee termination benefits, as a result of measures to minimize the adverse economic and business effect of the COVID-19 pandemic and to re-align resources with the Company's current business outlook and cost structure. $0.7 million, $0.2 million, $0.1 million and $0.1 million of the restructuring costs related to the CSO, Africa, North America and Middle East and Australasia reporting segments, respectively. As of March 31, 2021, substantially all of the restructuring costs had been paid. Restructuring costs are included in Administration and other expenses in the Consolidated Statement of Income. |
Schedule of Long-Lived Assets by Geographical Location | The following table depicts the geographical location of the Company’s long-lived assets (in thousands) other than financial instruments, deferred commissions and deferred tax assets: As of March 31, 2020 2021 South Africa $ 56,250 $ 63,832 America 10,027 10,366 Europe 9,697 5,178 Middle East and Australia 5,559 5,474 Brazil 1,417 854 Total $ 82,950 $ 85,704 These assets are allocated based on the physical location of the asset. |
Stock-based compensation plan (
Stock-based compensation plan (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Options | The following table summarizes the Company’s stock options for the year ended March 31, 2021: Number of Weighted- Weighted-Average Remaining Contractual Term (years) Aggregate Intrinsic Value*(in thousands) Outstanding as of April 1, 2020 3,500,000 28 Exercised (3,500,000) 28 Outstanding as of March 31, 2021 — — — $ — * The exercise price was denominated in South African cents. U.S. currency amounts are based on a ZAR:USD exchange rate of 14.9167 as of March 31, 2021. |
Summary of SARs | The following table summarizes the Company’s SARs for the year ended March 31, 2021: Number of Weighted- Weighted-Average Remaining Contractual Term (years) Aggregate Intrinsic Value* (in thousands) Outstanding as of April 1, 2020 32,943,750 35 Granted 11,200,000 40 Exercised (2,104,428) 21 Forfeited (1,471,405) 40 Outstanding as of March 31, 2021 40,567,917 37 3.29 Vested and expected to vest as of March 31, 2021 39,142,292 37 2.50 $ 7,107 Vested as of March 31, 2021 12,055,417 22 1.36 $ 3,804 * The exercise price is denominated in South African cents. U.S. currency amounts are based on a ZAR:USD exchange rate of 14.9167 as o f March 31, 2021. The following table summarizes the Company’s unvested SARs for the year ended March 31, 2021: Number of SARs Weighted- Average Grant-Date Fair Value in U.S. Cents* Unvested as of April 1, 2020 24,893,750 15 Granted 11,200,000 16 Vested (6,109,845) 9 Forfeited (1,471,405) 15 Unvested as of March 31, 2021 28,512,500 16 * The exercise price used to determine the grant date fair value is denominated in South African cents. U.S. currency amounts are based on a ZAR:USD exchange rate of 14.9167 as o f March 31, 2021. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Undrawn Facilities | Details of undrawn facilities are shown below: As of March 31, Interest rate 2020 2021 Undrawn borrowing facilities at floating rates include: – Standard Bank Limited: Overdraft SA prime* less 1.2% $ 1,204 $ 2,616 Vehicle and asset finance SA prime* less 1.2% 474 570 Working capital facility SA prime* less 0.25% 1,395 1,676 – Nedbank Limited overdraft SA prime* less 2% 558 670 $ 3,631 $ 5,532 *South African prime interest rate |
Exchange rates (Tables)
Exchange rates (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Foreign Currency [Abstract] | |
Schedule of Exchange Rates | The following major rates of exchange were used in the preparation of the consolidated financial statements: As of March 31, 2019 2020 2021 USD:ZAR – closing 14.48 17.92 14.92 – average 13.75 14.78 16.37 USD:GBP – closing 0.77 0.81 0.73 – average 0.76 0.79 0.77 |
Summary of significant accoun_4
Summary of significant accounting policies - Narrative (Details) | 12 Months Ended | ||||
Mar. 31, 2021USD ($)shares | Mar. 31, 2020USD ($)shares | Mar. 31, 2019USD ($)shares | Mar. 31, 2021ZAR (R)shares | May 23, 2017ZAR (R) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred commissions | $ 3,687,000 | $ 3,614,000 | |||
Restricted cash | 854,000 | 699,000 | |||
Write-down of inventory | 660,000 | 339,000 | $ 299,000 | ||
Goodwill impairments | 0 | 0 | |||
Impairment of long-lived assets (less than) | $ 8,000 | $ 6,000 | $ 62,000 | ||
Treasury stock (in shares) | shares | 53,816,750 | 54,000,000 | 53,816,750 | ||
Approved share repurchase program amount | $ 18,100,000 | R 270,000,000 | |||
Shares repurchased (in shares) | shares | 0 | 16,856,001 | 9,157,695 | ||
Shares repurchased | $ 0 | $ 9,800,000 | $ 5,300,000 | ||
Shares repurchased and delisted (in shares) | shares | 3,039,251 | ||||
Maximum value of shares that may still be repurchased | $ 2,200,000 | R 33,500,000 | |||
Expected forfeiture rates | 5.00% | ||||
Advertising costs | $ 2,300,000 | $ 2,000,000 | $ 2,000,000 | ||
Subsidiary | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Shares repurchased (in shares) | shares | 13,816,750 | ||||
Asset Held in Trust | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Restricted cash | $ 500,000 | $ 400,000 | |||
Minimum | Patents and trademarks | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Estimated useful life of intangible assets | 3 years | ||||
Minimum | Customer relationships | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Estimated useful life of intangible assets | 2 years | ||||
Minimum | Internal-use software, technology and other | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Estimated useful life of intangible assets | 1 year | ||||
Maximum | Patents and trademarks | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Estimated useful life of intangible assets | 20 years | ||||
Maximum | Customer relationships | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Estimated useful life of intangible assets | 15 years | ||||
Maximum | Internal-use software, technology and other | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Estimated useful life of intangible assets | 18 years | ||||
Subscription | Minimum | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Contract service period | 1 month | ||||
Subscription | Maximum | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Contract service period | 60 months |
Summary of significant accoun_5
Summary of significant accounting policies - Schedule of Cumulative Currency Translation Adjustments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | $ 99,020 | ||
Foreign currency translation (losses)/gains for the year, net of tax | 12,994 | $ (13,163) | $ (15,474) |
Ending balance | 123,394 | 99,020 | |
Cumulative Currency Translation Adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (11,070) | 2,115 | |
Foreign currency translation (losses)/gains for the year, net of tax | 12,994 | (13,163) | |
Ending balance | 1,924 | (11,070) | 2,115 |
Cumulative Currency Translation Adjustments | Cumulative Effect, Period of Adoption, Adjustment | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | $ 0 | (22) | |
Ending balance | $ 0 | $ (22) |
Summary of significant accoun_6
Summary of significant accounting policies - Schedule of Useful Lives of Property and Equipment (Details) | 12 Months Ended |
Mar. 31, 2021 | |
Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property and equipment | 1 year |
Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property and equipment | 8 years |
Motor vehicles | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property and equipment | 3 years |
Motor vehicles | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property and equipment | 7 years |
Furniture, fixtures and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property and equipment | 1 year |
Furniture, fixtures and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property and equipment | 10 years |
Computer equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property and equipment | 1 year |
Computer equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property and equipment | 7 years |
In-vehicle devices installed | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property and equipment | 1 year |
In-vehicle devices installed | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of property and equipment | 6 years 6 months |
Summary of significant accoun_7
Summary of significant accounting policies - Goodwill Allocation (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Goodwill | $ 43,938 | $ 37,923 |
Central Services Organization | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 6,913 | 5,754 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 8,993 | 8,106 |
Middle East and Australasia | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 4,364 | 4,364 |
Africa | ||
Segment Reporting Information [Line Items] | ||
Goodwill | $ 23,668 | $ 19,699 |
Summary of significant accoun_8
Summary of significant accounting policies - Goodwill Sensitivity (Details) | Mar. 31, 2021rate |
Central Services Organization | |
Goodwill [Line Items] | |
Fair value of reporting unit exceeded its carrying amount by | 558.70% |
Post-tax discount rate applied to the expected cash flow projections | 40.30% |
Decrease in the cash flow projections of | 81.70% |
Central Services Organization | Measurement Input, Discount Rate | |
Goodwill [Line Items] | |
Post-tax discount rate used to determine fair value | 0.147 |
Central Services Organization | Measurement Input, Growth Rate | |
Goodwill [Line Items] | |
Post-tax discount rate used to determine fair value | 0.044 |
Africa | |
Goodwill [Line Items] | |
Fair value of reporting unit exceeded its carrying amount by | 403.90% |
Post-tax discount rate applied to the expected cash flow projections | 49.60% |
Decrease in the cash flow projections of | 80.20% |
Africa | Measurement Input, Discount Rate | |
Goodwill [Line Items] | |
Post-tax discount rate used to determine fair value | 0.147 |
Africa | Measurement Input, Growth Rate | |
Goodwill [Line Items] | |
Post-tax discount rate used to determine fair value | 0.044 |
Europe | |
Goodwill [Line Items] | |
Fair value of reporting unit exceeded its carrying amount by | 38.60% |
Post-tax discount rate applied to the expected cash flow projections | 12.40% |
Decrease in the cash flow projections of | 27.70% |
Europe | Measurement Input, Discount Rate | |
Goodwill [Line Items] | |
Post-tax discount rate used to determine fair value | 0.098 |
Europe | Measurement Input, Growth Rate | |
Goodwill [Line Items] | |
Post-tax discount rate used to determine fair value | 0.020 |
Middle East and Australasia | |
Goodwill [Line Items] | |
Fair value of reporting unit exceeded its carrying amount by | 119.50% |
Post-tax discount rate applied to the expected cash flow projections | 14.80% |
Decrease in the cash flow projections of | 54.50% |
Middle East and Australasia | Measurement Input, Discount Rate | |
Goodwill [Line Items] | |
Post-tax discount rate used to determine fair value | 0.080 |
Middle East and Australasia | Measurement Input, Growth Rate | |
Goodwill [Line Items] | |
Post-tax discount rate used to determine fair value | 0.018 |
Credit risk related to accoun_3
Credit risk related to accounts receivables - Schedule of Aging Analysis of Accounts Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross | $ 24,840 | $ 27,702 |
Allowance for doubtful accounts | (5,575) | (3,602) |
Net | 19,265 | 24,100 |
Not past due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross | 10,156 | 11,670 |
Allowance for doubtful accounts | (513) | (366) |
Net | 9,643 | 11,304 |
Past due by 1 to 30 days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross | 4,769 | 7,309 |
Allowance for doubtful accounts | (436) | (321) |
Net | 4,333 | 6,988 |
Past due by 31 to 60 days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross | 2,457 | 2,799 |
Allowance for doubtful accounts | (259) | (158) |
Net | 2,198 | 2,641 |
Past due by more than 60 days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross | 7,458 | 5,924 |
Allowance for doubtful accounts | (4,367) | (2,757) |
Net | $ 3,091 | $ 3,167 |
Credit risk related to accoun_4
Credit risk related to accounts receivables - Schedule of Movements in the Allowance for Doubtful Debts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at April 1, | $ 3,602 | $ 2,719 | |
Bad debt provision | 2,961 | 3,941 | $ 2,098 |
Write-offs, net of recoveries | (1,656) | (2,655) | |
Foreign currency translation differences | 668 | (704) | |
Balance at March 31, | 5,575 | 3,602 | 2,719 |
Cumulative Effect, Period of Adoption, Adjustment | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at April 1, | 0 | 301 | |
Balance at March 31, | 0 | 301 | |
Cumulative Effect, Period of Adoption, Adjusted Balance | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at April 1, | $ 3,602 | 3,020 | |
Balance at March 31, | $ 3,602 | $ 3,020 |
Credit risk related to accoun_5
Credit risk related to accounts receivables - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Mar. 31, 2020 |
Receivables [Abstract] | ||
Net accounts receivables pledged as security | $ 2.3 | $ 2.9 |
Property equipment - Schedule o
Property equipment - Schedule of Owned Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Less: accumulated depreciation and impairments | $ (42,955) | $ (35,397) |
Owned equipment, net | 17,370 | 23,541 |
Equipment, vehicles and other | ||
Property, Plant and Equipment [Line Items] | ||
Owned equipment, gross | 6,877 | 6,114 |
In-vehicle devices | ||
Property, Plant and Equipment [Line Items] | ||
Owned equipment, gross | $ 53,448 | $ 52,824 |
Property and equipment - Narrat
Property and equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 12,878 | $ 16,149 | $ 12,492 |
Property equipment - Schedule_2
Property equipment - Schedule of Right-of-Use Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Less: accumulated depreciation | $ (2,481) | $ (1,496) |
Right of use property and equipment, net | 6,093 | 6,478 |
Property | ||
Property, Plant and Equipment [Line Items] | ||
Right of use property and equipment, gross | 8,348 | 7,724 |
Equipment, vehicles and other | ||
Property, Plant and Equipment [Line Items] | ||
Right of use property and equipment, gross | $ 226 | $ 250 |
Intangible assets - Schedule of
Intangible assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying amount | $ 38,420 | $ 29,184 |
Accumulated amortization | (20,117) | (14,177) |
Net | 18,303 | 15,007 |
Patents and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying amount | 115 | 76 |
Accumulated amortization | (82) | (45) |
Net | $ 33 | 31 |
Patents and trademarks | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life of intangible assets | 3 years | |
Patents and trademarks | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life of intangible assets | 20 years | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying amount | $ 2,687 | 2,600 |
Accumulated amortization | (2,271) | (2,068) |
Net | $ 416 | 532 |
Customer relationships | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life of intangible assets | 2 years | |
Customer relationships | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life of intangible assets | 15 years | |
Internal-use software, technology and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying amount | $ 35,618 | 26,508 |
Accumulated amortization | (17,764) | (12,064) |
Net | $ 17,854 | $ 14,444 |
Internal-use software, technology and other | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life of intangible assets | 1 year | |
Internal-use software, technology and other | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life of intangible assets | 18 years |
Intangible assets - Narrative (
Intangible assets - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 3,681 | $ 3,823 | $ 3,876 |
Weighted average amortization period of intangibles purchased | 1 year | 3 years | |
Internally generated in-house software in progress | $ 3,800 | $ 2,600 |
Intangible assets - Schedule _2
Intangible assets - Schedule of Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 | $ 5,055 | |
2023 | 4,482 | |
2024 | 3,756 | |
2025 | 2,754 | |
2026 | 1,721 | |
Thereafter | 535 | |
Net | $ 18,303 | $ 15,007 |
Other assets - Schedule of Othe
Other assets - Schedule of Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deferred commissions | $ 3,687 | $ 3,614 |
Loans to external parties and other receivables | 747 | 586 |
Total other assets | $ 4,434 | $ 4,200 |
Other assets - Narrative (Detai
Other assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
BIG | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying amount of loans to external parties | $ 0.5 | |
Imputed interest rate on the loans | 9.65% | |
HSW | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying amount of loans to external parties | $ 0.6 | |
Imputed interest rate on the loans | 11.65% |
Other assets - Schedule of Defe
Other assets - Schedule of Deferred Commissions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Capitalized Contract Cost [Line Items] | ||
Amortization recognized from deferred commissions | $ (3,533) | $ (3,486) |
Cost of Revenue | ||
Capitalized Contract Cost [Line Items] | ||
Amortization recognized from deferred commissions | (2,552) | (2,428) |
Sales and Marketing | ||
Capitalized Contract Cost [Line Items] | ||
Amortization recognized from deferred commissions | $ (981) | $ (1,058) |
Accrued expenses and other li_3
Accrued expenses and other liabilities - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Current: | ||
Product warranties | $ 605 | $ 601 |
Maintenance | 609 | 357 |
Employee-related accruals | 6,166 | 5,296 |
Lease liabilities | $ 1,395 | $ 1,094 |
Lease liabilities [Extensible List] | Current liabilities: | Current liabilities: |
Accrued income tax payable | $ 1,345 | $ 736 |
Accrued commissions | 2,199 | 1,760 |
Other accruals | 6,356 | 4,995 |
Total current | 18,675 | 14,839 |
Non-current: | ||
Lease liabilities | $ 4,895 | $ 5,413 |
Lease liabilities [Extensible List] | us-gaap:LiabilitiesNoncurrentAbstract | us-gaap:LiabilitiesNoncurrentAbstract |
Other liabilities | $ 968 | $ 247 |
Total non-current | $ 5,863 | $ 5,660 |
Accrued expenses and other li_4
Accrued expenses and other liabilities - Schedule of Product Warranties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Product warranties | ||
Beginning balance | $ 616 | $ 777 |
Warranty expense | 102 | 372 |
Utilized | (211) | (409) |
Foreign currency translation difference | 105 | (124) |
Ending balance | 612 | 616 |
Non-current portion (included in other liabilities) | 7 | 15 |
Current portion | $ 605 | $ 601 |
Deferred revenue (Details)
Deferred revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Revenue recognized that is included in the deferred revenue beginning balance | $ 3,100 | $ 4,100 |
Change in Contract eith Customer Liability Roll Forward [Roll Forward] | ||
Opening balance | 5,077 | 6,107 |
Increases during the year | 33,009 | 20,716 |
Reversed (recognized as revenue) | (33,210) | (20,736) |
Foreign currency translation difference | 912 | (1,010) |
Closing balance | $ 5,788 | $ 5,077 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Mar. 31, 2021 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 1 month |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 138 months |
Annual escalations rate | 8.00% |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | |||
Operating lease cost | $ 1,657 | $ 1,631 | $ 1,228 |
Short-term lease cost | 407 | 198 | 721 |
Total lease cost | $ 2,064 | $ 1,829 | $ 1,949 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information and Non-Cash Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Operating cash flow information: | |||
Cash payments included in the measurement of lease liabilities | $ 1,540 | $ 1,500 | $ 1,270 |
Non-cash activity: | |||
Right-of-use assets obtained in exchange for lease obligations | $ 110 | $ 4,520 | $ 815 |
Weighted-average remaining lease term - operating leases | 3 years 2 months 1 day | 3 years 9 months 29 days | 3 years |
Weighted-average incremental borrowing discount rate of operating leases | 7.30% | 7.20% | 5.40% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments Under Non-Cancellable Operating Leases (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 1,473 |
2023 | 1,171 |
2024 | 998 |
2025 | 938 |
2026 | 912 |
Thereafter | 2,731 |
Total lease payments | 8,223 |
Less: Imputed interest | (1,933) |
Present value of lease liabilities | $ 6,290 |
Income taxes - Schedule of Comp
Income taxes - Schedule of Components of Income Before Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Domestic (South Africa) | $ 14,443 | $ 30,464 | $ 28,767 |
Foreign | 2,786 | (9,648) | (4,142) |
Income before income tax expense | $ 17,229 | $ 20,816 | $ 24,625 |
Income taxes - Summary of Incom
Income taxes - Summary of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Current tax | |||
Domestic (South Africa) | $ (5,768) | $ (4,261) | $ (5,620) |
Foreign federal | (165) | 0 | 0 |
Foreign state | (1,020) | (978) | (1,109) |
Total Current | (6,953) | (5,239) | (6,729) |
Deferred tax | |||
Domestic (South Africa) | 3,987 | (4,744) | (3,963) |
Foreign federal | 83 | 55 | 115 |
Foreign state | 249 | 99 | 762 |
Total deferred | 4,319 | (4,590) | (3,086) |
Total income tax expense | $ (2,634) | $ (9,829) | $ (9,815) |
Income taxes - Reconciliation o
Income taxes - Reconciliation of Income Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income before income tax expense | $ 17,229 | $ 20,816 | $ 24,625 |
Tax at South African statutory rate of 28% | 4,824 | 5,828 | 6,895 |
Tax effect of: | |||
– Income not subject to tax | (35) | 0 | (41) |
– Non-deductible expenses | 929 | 235 | 423 |
– Non-deductible/(non-taxable) foreign exchange movements | (3,401) | 4,085 | 3,441 |
– Investment in subsidiaries | 217 | 42 | (37) |
– Withholding tax | 23 | 0 | 56 |
– Utilization of previously unrecognized tax losses | (252) | (195) | (385) |
– Foreign tax paid | 425 | 623 | 272 |
– Foreign tax rate differential | (241) | (213) | (290) |
– Recognition of previously unrecognized tax losses | (73) | (11) | (262) |
– Tax losses not recognized | 92 | 75 | 18 |
– Under-provision prior years | 298 | 138 | 157 |
– Tax incentives in addition to incurred cost | (321) | (897) | (448) |
– Stock based compensation | 0 | 0 | (113) |
– Transfer pricing imputation | 21 | 65 | 6 |
– Imputation of controlled foreign company income | 100 | 119 | 177 |
– Other | (28) | 65 | 54 |
Income tax expense | 2,634 | 9,829 | $ 9,815 |
Deferred tax asset | $ 3,782 | 3,108 | |
Tax benefit recorded that previously was not considered probable | $ 500 |
Income taxes - Narrative (Detai
Income taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | |||
Valuation allowance on tax losses that will not be realized | $ 0.5 | $ 0.7 | |
Cumulative tax losses | 2 | 2.8 | |
Decrease in valuation allowance resulting from recognition of previously unrecognized tax losses | 0.3 | 0.1 | |
Net tax loss carryforwards | 11.7 | $ 17.6 | |
Thailand | |||
Operating Loss Carryforwards [Line Items] | |||
Tax losses subject to expiration | $ 0.2 | ||
Weighted Average | |||
Operating Loss Carryforwards [Line Items] | |||
Tax rate | 15.30% | 47.20% | 39.90% |
Income taxes - Deferred Tax Ass
Income taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | |
Deferred tax liabilities | |||||
Capital allowances for tax purposes | $ 3,494 | $ 4,141 | |||
Intangible assets | 3,559 | 2,778 | |||
Prepaid expenses | 133 | 164 | |||
Deferred foreign currency gains | 6,186 | 8,402 | |||
Investment in subsidiaries | 427 | 157 | |||
Deferred commissions | 802 | 894 | |||
Lease assets | 482 | 842 | |||
Other | 202 | 79 | |||
Gross deferred tax liabilities | 15,285 | 17,457 | |||
Set-off of deferred tax balances | (6,098) | (6,021) | |||
Net deferred tax liabilities | 9,187 | 11,436 | |||
Deferred tax assets | |||||
Deferred revenue | 1,224 | 1,059 | |||
Capital allowances for tax purposes | 823 | 1,137 | |||
Accruals | 5,037 | 2,986 | |||
Tax losses | 1,456 | 2,578 | |||
Stock based compensation | 540 | 396 | |||
Deferred foreign currency losses | 407 | 374 | |||
Recurring commission liability | 186 | 169 | |||
Lease liabilities | 552 | 913 | |||
Other | 166 | 265 | |||
Gross deferred tax assets | 10,391 | 9,877 | |||
Set-off of deferred tax balances | (6,098) | (6,021) | |||
Net deferred tax assets before valuation allowance | 4,293 | 3,856 | |||
Less valuation allowance | (511) | (748) | |||
Net deferred tax assets | 3,782 | 3,108 | |||
Net deferred tax liability | $ (8,328) | $ (8,328) | $ (5,977) | $ (5,405) | $ (8,328) |
The gross movement in net deferred tax assets/(liabilities) is as follows: | |||||
Opening balance | (8,328) | (5,977) | |||
Adjustment on initial application of ASC 326 | 0 | 39 | |||
Foreign currency translation | (1,415) | 2,240 | |||
Other comprehensive income | 19 | (40) | |||
Statement of Income charge | 4,319 | (4,590) | (3,086) | ||
Ending balance | $ (5,405) | $ (8,328) | $ (5,977) |
Earnings per share (Details)
Earnings per share (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021USD ($)shares$ / shares | Mar. 31, 2020USD ($)shares$ / shares | Mar. 31, 2019USD ($)shares$ / shares | |
Earnings Per Share [Abstract] | |||
Equivalent of one ADS (in shares) | 25 | 25 | 25 |
Basic earnings per share | |||
Income attributable to ordinary shareholders | $ | $ 14,595 | $ 10,987 | $ 14,810 |
Weighted average number of ordinary shares in issue (in shares) | 549,415,000 | 553,653,000 | 563,578,000 |
Basic earnings per share (in dollars per share) | $ / shares | $ 0.03 | $ 0.02 | $ 0.03 |
Weighted average number of American Depository Shares in issue (in shares) | 21,977,000 | 22,146,000 | 22,543,000 |
Basic earnings per American Depository Share (in dollars per share) | $ / shares | $ 0.66 | $ 0.50 | $ 0.66 |
Diluted earnings per share | |||
Income attributable to ordinary shareholders | $ | $ 14,595 | $ 10,987 | $ 14,810 |
Weighted average number of ordinary shares in issue (in shares) | 549,415,000 | 553,653,000 | 563,578,000 |
Diluted weighted average number of ordinary shares in issue (in shares) | 560,624,000 | 567,879,000 | 583,741,000 |
Diluted earnings per share (in dollars per share) | $ / shares | $ 0.03 | $ 0.02 | $ 0.03 |
Diluted weighted average number of American Depository Shares in issue (in shares) | 22,425,000 | 22,715,000 | 23,350,000 |
Diluted earnings per American Depository Share (in dollars per share) | $ / shares | $ 0.65 | $ 0.48 | $ 0.63 |
Share Appreciation Rights | |||
Diluted earnings per share | |||
Potentially dilutive effect of share-based payment arrangements (in shares) | 9,872,000 | 12,560,000 | 16,245,000 |
RSUs | |||
Diluted earnings per share | |||
Potentially dilutive effect of share-based payment arrangements (in shares) | 774,000 | 0 | 0 |
Stock Options | |||
Diluted earnings per share | |||
Potentially dilutive effect of share-based payment arrangements (in shares) | 562,000 | 1,666,000 | 3,918,000 |
Dividends (Details)
Dividends (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Equity [Abstract] | |||
Dividends declared | $ 5,367 | $ 6,015 | $ 4,914 |
Segment information - Narrative
Segment information - Narrative (Details) | 12 Months Ended |
Mar. 31, 2021segmentregional_sales_office | |
Segment Reporting [Abstract] | |
Number of reportable segments | segment | 6 |
Number of regional sales offices | regional_sales_office | 5 |
Segment information - Schedule
Segment information - Schedule of Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Total revenue | $ 126,894 | $ 145,650 | $ 143,705 |
Segment Adjusted EBITDA | 48,811 | 53,298 | 52,472 |
Subscription | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 113,351 | 127,570 | 123,150 |
Hardware and other | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 13,543 | 18,080 | 20,555 |
Total Regional Sales Offices | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 126,809 | 145,237 | 143,644 |
Segment Adjusted EBITDA | 56,364 | 62,473 | 63,883 |
Total Regional Sales Offices | Subscription | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 113,282 | 127,460 | 123,096 |
Total Regional Sales Offices | Hardware and other | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 13,527 | 17,777 | 20,548 |
Africa | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 67,948 | 76,756 | 75,960 |
Segment Adjusted EBITDA | 31,781 | 33,103 | 35,238 |
Africa | Subscription | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 62,453 | 70,886 | 70,503 |
Africa | Hardware and other | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 5,495 | 5,870 | 5,457 |
Europe | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 14,579 | 15,027 | 15,255 |
Segment Adjusted EBITDA | 6,260 | 5,603 | 4,931 |
Europe | Subscription | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 12,138 | 11,682 | 10,221 |
Europe | Hardware and other | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 2,441 | 3,345 | 5,034 |
Americas | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 18,981 | 24,529 | 23,925 |
Segment Adjusted EBITDA | 7,077 | 10,370 | 11,097 |
Americas | Subscription | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 18,211 | 22,322 | 21,279 |
Americas | Hardware and other | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 770 | 2,207 | 2,646 |
Middle East and Australasia | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 21,237 | 23,130 | 23,528 |
Segment Adjusted EBITDA | 9,751 | 11,031 | 10,610 |
Middle East and Australasia | Subscription | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 16,558 | 17,389 | 16,439 |
Middle East and Australasia | Hardware and other | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 4,679 | 5,741 | 7,089 |
Brazil | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 4,064 | 5,795 | 4,976 |
Segment Adjusted EBITDA | 1,495 | 2,366 | 2,007 |
Brazil | Subscription | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 3,922 | 5,181 | 4,654 |
Brazil | Hardware and other | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 142 | 614 | 322 |
Central Services Organization | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 85 | 413 | 61 |
Segment Adjusted EBITDA | (7,553) | (9,175) | (11,411) |
Central Services Organization | Subscription | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 69 | 110 | 54 |
Central Services Organization | Hardware and other | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 16 | 303 | 7 |
South African-Based Segments | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 67,100 | 76,000 | 74,600 |
Foreign-Based Segments | |||
Segment Reporting Information [Line Items] | |||
Total revenue | $ 59,800 | $ 69,700 | $ 69,100 |
Segment information - Reconcili
Segment information - Reconciliation of Segment Results to Income Before Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting [Abstract] | |||
Segment Adjusted EBITDA | $ 48,811 | $ 53,298 | $ 52,472 |
Corporate and consolidation entries | (8,879) | (8,366) | (8,631) |
Loss contingency | 0 | (233) | 15 |
Expected credit losses | 0 | 0 | 64 |
Operating lease costs | (1,652) | (1,610) | (988) |
Product development costs | (1,112) | (1,363) | (1,449) |
Depreciation and amortization | (16,559) | (19,972) | (16,368) |
Impairment of long-lived assets | (8) | (6) | (62) |
Stock-based compensation costs | (1,273) | (660) | (511) |
(Increase)/decrease in restructuring costs | (1,055) | 1 | (221) |
Net profit/(loss) on sale of property and equipment | (13) | 270 | 43 |
Net foreign exchange gains/(losses) | (959) | (610) | 28 |
Net interest income/(expense) | (72) | 67 | 233 |
Income before income tax expense | 17,229 | $ 20,816 | 24,625 |
Middle East and Australia | |||
Segment Reporting Information [Line Items] | |||
Restructuring costs | 100 | 100 | |
Africa | |||
Segment Reporting Information [Line Items] | |||
Restructuring costs | 200 | $ 100 | |
CSO | |||
Segment Reporting Information [Line Items] | |||
Restructuring costs | 700 | ||
North America | |||
Segment Reporting Information [Line Items] | |||
Restructuring costs | $ 100 |
Segment information - Schedul_2
Segment information - Schedule of Long-Lived Assets by Geographical Location (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 85,704 | $ 82,950 |
South Africa | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 63,832 | 56,250 |
America | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 10,366 | 10,027 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 5,178 | 9,697 |
Middle East and Australia | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 5,474 | 5,559 |
Brazil | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 854 | $ 1,417 |
Stock-based compensation plan -
Stock-based compensation plan - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021USD ($)planshares | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of equity-classified incentive plans | plan | 2 | ||
Stock-based compensation expense | $ 1,273 | $ 660 | $ 511 |
Deferred tax benefit recognized | 100 | 400 | 100 |
Tax benefits realized on awards exercised | $ 100 | $ 200 | $ 100 |
LTIP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares reserved for future issuance | shares | 47,090,000 |
Stock-based compensation plan_2
Stock-based compensation plan - Stock Options, Narrative (Details) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021USD ($)R / $ | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($)R / $ | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total intrinsic value of options exercised | $ | $ 480 | $ 0 | $ 2,860 |
Average | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Foreign exchange rate | R / $ | 16.3724 | 13.7494 | |
Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage | 25.00% | ||
Award expiration period | 6 years | ||
Annual total shareholder return percentage (in excess of) | 10.00% | ||
Estimated forfeiture rate | 5.00% |
Stock-based compensation plan_3
Stock-based compensation plan - Summary of Stock Options (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||||||
Mar. 31, 2021$ / sharesshares | Mar. 31, 2021USD ($) | Mar. 31, 2021R / $ | Mar. 31, 2021$ / R | Mar. 31, 2021$ / £ | Mar. 31, 2020$ / shares | Mar. 31, 2020$ / R | Mar. 31, 2020$ / £ | Mar. 31, 2019$ / R | Mar. 31, 2019$ / £ | |
Number of Options | ||||||||||
Outstanding as of beginning of period (in shares) | shares | 3,500,000 | |||||||||
Exercised (in shares) | shares | (3,500,000) | |||||||||
Outstanding as of end of period (in shares) | shares | 0 | |||||||||
Weighted- Average Exercise Price in U.S. Cents | ||||||||||
Outstanding as of beginning of period (in dollars per share) | $ / shares | $ 0 | $ 0.28 | ||||||||
Exercised (in dollars per share) | $ / shares | 0.28 | |||||||||
Outstanding as of end of period (in dollars per share) | $ / shares | $ 0 | |||||||||
Weighted Average Remaining Contractual Term, Outstanding | 0 years | |||||||||
Aggregate Intrinsic Value, Outstanding | $ | $ 0 | |||||||||
Exchange rate | 14.9167 | 14.92 | 0.73 | 17.92 | 0.81 | 14.48 | 0.77 |
Stock-based compensation plan_4
Stock-based compensation plan - SARs, Narrative (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||||
Mar. 31, 2021USD ($)$ / sharesR / $ | Mar. 31, 2020USD ($)$ / shares$ / R | Mar. 31, 2019USD ($)$ / shares$ / R | Mar. 31, 2021USD ($) | Mar. 31, 2021$ / R | Mar. 31, 2021$ / £ | Mar. 31, 2020$ / £ | Mar. 31, 2019$ / £ | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Exchange rate | 14.9167 | 17.92 | 14.48 | 14.92 | 0.73 | 0.81 | 0.77 | |
Average | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Exchange rate | 14.78 | 13.75 | 16.37 | 0.77 | 0.79 | 0.76 | ||
SARs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting percentage | 25.00% | |||||||
Award expiration period | 6 years | |||||||
Annual total shareholder return percentage (in excess of) | 10.00% | |||||||
Estimated forfeiture rate | 5.00% | |||||||
Weighted-average grant-date fair value (in dollars per share) | $ / shares | $ 0.16 | $ 0.21 | $ 0.28 | |||||
Total intrinsic value of awards exercised | $ 310 | $ 1,210 | $ 700 | |||||
Unrecognized compensation cost | $ 2,030 | |||||||
Expected period for recognition of unvested awards | 4 years 2 months 4 days |
Stock-based compensation plan_5
Stock-based compensation plan - Summary of SARs (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||||||
Mar. 31, 2021USD ($)$ / sharesshares | Mar. 31, 2021R / $ | Mar. 31, 2021shares | Mar. 31, 2021USD ($) | Mar. 31, 2021$ / R | Mar. 31, 2021$ / £ | Mar. 31, 2020$ / R | Mar. 31, 2020$ / £ | Mar. 31, 2019$ / R | Mar. 31, 2019$ / £ | |
Weighted- Average Exercise Price in U.S. Cents* | ||||||||||
Exchange rate | 14.9167 | 14.92 | 0.73 | 17.92 | 0.81 | 14.48 | 0.77 | |||
SARs | ||||||||||
Number of SARs | ||||||||||
Outstanding as of beginning of period (in shares) | shares | 32,943,750 | |||||||||
Granted (in shares) | shares | 11,200,000 | |||||||||
Exercised (in shares) | shares | (2,104,428) | |||||||||
Forfeited (in shares) | shares | (1,471,405) | |||||||||
Outstanding as of end of period (in shares) | shares | 40,567,917 | |||||||||
Vested and expected to vest (in shares) | shares | 39,142,292 | |||||||||
Vested (in shares) | shares | 12,055,417 | |||||||||
Weighted- Average Exercise Price in U.S. Cents* | ||||||||||
Outstanding as of beginning of period (in dollars per share) | $ / shares | $ 0.35 | |||||||||
Granted (in dollars per share) | $ / shares | 0.40 | |||||||||
Exercised (in dollars per share) | $ / shares | 0.21 | |||||||||
Forfeited (in dollars per share) | $ / shares | 0.40 | |||||||||
Outstanding as of end of period (in dollars per share) | $ / shares | 0.37 | |||||||||
Vested and expected to vest (in dollars per share) | $ / shares | 0.37 | |||||||||
Vested (in dollars per share) | $ / shares | $ 0.22 | |||||||||
Weighted Average Remaining Contractual Term, Outstanding | 3 years 3 months 14 days | |||||||||
Weighted Average Remaining Contractual Term, Vested and expected to vest | 2 years 6 months | |||||||||
Weighted Average Remaining Contractual Term, Vested | 1 year 4 months 9 days | |||||||||
Aggregate Intrinsic Value, Vested and expected to vest | $ | $ 7,107 | |||||||||
Aggregate Intrinsic Value, Vested | $ | $ 3,804 |
Stock-based compensation plan_6
Stock-based compensation plan - Summary of Unvested SARs (Details) | 12 Months Ended | ||||||
Mar. 31, 2021$ / sharesR / $shares | Mar. 31, 2020$ / shares$ / Rshares | Mar. 31, 2019$ / shares$ / R | Mar. 31, 2021$ / R | Mar. 31, 2021$ / £ | Mar. 31, 2020$ / £ | Mar. 31, 2019$ / £ | |
Share-based Payment Arrangement [Abstract] | |||||||
Exchange rate | 14.9167 | 17.92 | 14.48 | 14.92 | 0.73 | 0.81 | 0.77 |
SARs | |||||||
Number of SARs | |||||||
Unvested as of beginning of period (in shares) | shares | 24,893,750 | ||||||
Granted (in shares) | shares | 11,200,000 | ||||||
Vested (in shares) | shares | (6,109,845) | ||||||
Forfeited (in shares) | shares | (1,471,405) | ||||||
Unvested as of end of period (in shares) | shares | 28,512,500 | 24,893,750 | |||||
Weighted- Average Exercise Price in U.S. Cents* | |||||||
Unvested as of beginning of period (in dollars per share) | $ / shares | $ 0.15 | ||||||
Granted (in dollars per share) | $ / shares | 0.16 | $ 0.21 | $ 0.28 | ||||
Vested (in dollars per share) | $ / shares | 0.09 | ||||||
Forfeited (in dollars per share) | $ / shares | 0.15 | ||||||
Unvested as of end of period (in dollars per share) | $ / shares | $ 0.16 | $ 0.15 |
Stock-based compensation plan_7
Stock-based compensation plan - Restricted Share Units, Narrative (Details) $ / shares in Units, $ in Millions | Jun. 01, 2020shares | Mar. 31, 2021$ / sharesR / $ | Mar. 31, 2021shares | Mar. 31, 2021USD ($) | Mar. 31, 2021$ / R | Mar. 31, 2021$ / £ | Mar. 31, 2020$ / R | Mar. 31, 2020$ / £ | Mar. 31, 2019$ / R | Mar. 31, 2019$ / £ |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Exchange rate | 14.9167 | 14.92 | 0.73 | 17.92 | 0.81 | 14.48 | 0.77 | |||
RSUs | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares granted | 2,000,000 | |||||||||
Award vesting percentage | 50.00% | |||||||||
Estimated forfeiture rate | 5.00% | |||||||||
Weighted-average grant-date fair value (in dollars per share) | $ / shares | $ 0.34 | |||||||||
Unrecognized compensation cost | $ | $ 0.4 | |||||||||
Expected period for recognition of unvested awards | 2 years | |||||||||
Weighted average remaining contractual term | 2 years | |||||||||
RSUs | LTIP | Maximum | Any Financial Year | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares to be granted | 2,000,000 | |||||||||
RSUs | LTIP | Maximum | Over the Life of the Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares to be granted | 12,000,000 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Debt Disclosure [Abstract] | ||
Bank overdrafts | $ 1,674 | $ 2,367 |
Debt - Schedule of Undrawn Faci
Debt - Schedule of Undrawn Facilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Line of Credit Facility [Line Items] | ||
Undrawn borrowing remaining | $ 5,532 | $ 3,631 |
Standard Bank Limited | Overdraft | ||
Line of Credit Facility [Line Items] | ||
Percentage deducted from interest rate | 1.20% | |
Undrawn borrowing remaining | $ 2,616 | 1,204 |
Standard Bank Limited | Vehicle and asset finance | ||
Line of Credit Facility [Line Items] | ||
Percentage deducted from interest rate | 1.20% | |
Undrawn borrowing remaining | $ 570 | 474 |
Standard Bank Limited | Working capital facility | ||
Line of Credit Facility [Line Items] | ||
Percentage deducted from interest rate | 0.25% | |
Undrawn borrowing remaining | $ 1,676 | 1,395 |
Nedbank Limited | Overdraft | ||
Line of Credit Facility [Line Items] | ||
Percentage deducted from interest rate | 2.00% | |
Undrawn borrowing remaining | $ 670 | $ 558 |
Commitment and Contingencies -
Commitment and Contingencies - Capital Commitments (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 |
Capital Commitments for Property and Equipment | |||
Other Commitments [Line Items] | |||
Capital commitments | $ 1.2 | $ 1.8 | $ 2.8 |
Capital Commitments for Intangible Assets | |||
Other Commitments [Line Items] | |||
Capital commitments | $ 1.3 | $ 0.9 | $ 1.3 |
Commitment and contingencies _2
Commitment and contingencies - Contingencies (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Mar. 31, 2020 |
Amended Network Service Agreement with MTN | Maximum | ||
Loss Contingencies [Line Items] | ||
Potential liability | $ 2 | $ 1.9 |
Retirement benefits (Details)
Retirement benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |||
Total contributions for retirement benefits | $ 1.9 | $ 2.2 | $ 2.1 |
Related party transactions (Det
Related party transactions (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Non-executive Chairperson | TPF Investments Proprietary Limited | ||
Related Party Transaction [Line Items] | ||
Lease expense | $ 0.2 | $ 0.5 |
Subsequent events (Details)
Subsequent events (Details) - R / shares | Jul. 01, 2021 | Mar. 31, 2021 |
Subsequent Event [Line Items] | ||
Dividends declared (in ZAR per share) | R 0.04 | |
ADR | ||
Subsequent Event [Line Items] | ||
Dividends declared (in ZAR per share) | R 0.01 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Dividend paid (in ZAR per share) | R 0.04 | |
Subsequent Event | ADR | ||
Subsequent Event [Line Items] | ||
Dividend paid (in ZAR per share) | R 0.01 |
Exchange rates (Details)
Exchange rates (Details) | Mar. 31, 2021R / $ | Mar. 31, 2021$ / R | Mar. 31, 2021$ / £ | Mar. 31, 2020$ / R | Mar. 31, 2020$ / £ | Mar. 31, 2019$ / R | Mar. 31, 2019$ / £ |
Intercompany Foreign Currency Balance [Line Items] | |||||||
Exchange rate | 14.9167 | 14.92 | 0.73 | 17.92 | 0.81 | 14.48 | 0.77 |
Average | |||||||
Intercompany Foreign Currency Balance [Line Items] | |||||||
Exchange rate | 16.37 | 0.77 | 14.78 | 0.79 | 13.75 | 0.76 |
SEC Schedule, Article 12-09, _2
SEC Schedule, Article 12-09, Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Allowance for doubtful accounts, foreign currency translation gain | $ 700 | ||
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of the year | $ 3,602 | 2,719 | $ 1,482 |
Net additions / (decreases) - charged to costs and expenses | 2,961 | 3,941 | 2,098 |
Net additions / (decreases) - charged to other accounts | 670 | (403) | (289) |
Deductions | (1,656) | (2,655) | (572) |
Balance at end of the year | 5,577 | 3,602 | 2,719 |
Allowance for doubtful accounts | Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13 | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of the year | 300 | ||
Balance at end of the year | 300 | ||
Deferred taxation valuation allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of the year | 748 | 1,010 | 1,784 |
Net additions / (decreases) - charged to costs and expenses | 19 | 64 | (244) |
Net additions / (decreases) - charged to other accounts | (4) | (131) | (145) |
Deductions | (252) | (195) | (385) |
Balance at end of the year | $ 511 | $ 748 | $ 1,010 |