To view the PDF file, sign up for a MySharenet subscription.

GO LIFE INTERNATIONAL LIMITED - Abridged unaudited consolidated financial statements for the quarter and six months ended 31 August 2018

Release Date: 15/10/2018 14:00
Code(s): GLI     PDF:  
Wrap Text
Abridged unaudited consolidated financial statements for the quarter and six months ended 31 August 2018

GO LIFE INTERNATIONAL LIMITED
(Incorporated in the Republic of Mauritius)
(Registration number: 098177 C1/GBL)
Primary Listing SEM share code: GOLI.N0000
Secondary Listing JSE share code: GLI ISIN: MU0330N00004
(“the Company” or “Go Life”)

ABRIDGED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE QUARTER AND SIX MONTHS ENDED 31 AUGUST 2018


DIRECTORS’ COMMENTARY

BACKGROUND
The Company was incorporated on 1 October 2010 as a public company limited by shares under the
Mauritian Companies Act and holds a Category 1 Global Business License (License No - C110009034)
issued by the Mauritius Financial Services Commission.

Go Life is registered in the Republic of Mauritius and was listed on the Stock Exchange of Mauritius (“SEM”)
on 7 July 2011. The Company successfully completed a secondary listing on the Alternative Exchange
(“AltX”) of the Johannesburg Stock Exchange (”JSE”) on 23 November 2016.

PRIMARY OBJECTIVE
Go Life was established to leverage the strength of existing South African nutraceutical companies, Go
Life Health Products and Gotha Health Products (collectively Go Life SA), and to drive the presence of
the South African products and brands across the global nutraceutical market.

The current focus of the Company is to participate in the medical industry through a holistic approach
achieved by focusing on health care with an emphasis on complementary and alternative medicine
and practices without discounting the role of conventional pharmaceutical products. To maximize
stakeholder returns, Go Life’s strategy is based on planning and executing its growth through
participation in the full spectrum of health care as opposed to limiting activities to individual market
subsectors.

RESULTS COMMENTARY

Revenue grew by 122% for the three months ended 31 August 2018 (“Q2”) compared to the prior three-
months ended 31 May 2018 (“Q1”). The growth in revenue can be attributed to the new channels of
sales in the formal pharmaceutical industry through distributors and warehouses across South Africa, and
not only in the Eastern Cape, where the business was started.

The Go Life Health Kiosks’ study period, Mamelodi Mall (in Tshwane) and the outlet in Port Elizabeth have
shown excellent growth, albeit off a low base. It has also pointed to various shortfalls in our brand and
marketing strategies, which are being addressed.

Profit from operations increased by 185.3% for Q2 to USD487 199 from USD170 752 in Q1.

Income from associates increased by 37.3% and is derived from the associate interest in Bon Health frail
care operations.

COMPANY OUTLOOK

One of the key positioning strategies of Go Life, is to be acknowledged as a vendor of excellent quality
medicinal remedies across the total pharmaceutical sphere, but with preeminent focus on its
nutraceutical and wellness brands.

To ensure alignment with our positioning strategy, the Company had launched a market study and
positioning audit to determine its market cover and to guide the acquisition of reliable brands in the
wellness market space. This audit highlighted certain limitations in the Go Life offering to the target
market as well as limitations of sales channels to reach the said market. This knowledge informed the
decision to acquire Sportron International (“Sportron”) together with their excellent wellness brands
including, amongst others, Swissgarde, Osteoflex and Biobalance, as well as Ascendis Health Direct, a
leading network marketing company specialising in the health industry. Sportron is a direct marketing
entity which has a footprint in South Africa and Nigeria.

The supply of Go Life products into official sales channels has yielded promising results. The Gotha Health
Products brand is now available to pharmacists and other outlets across South Africa through distributors
and pharmaceutical wholesalers. A marketing strategy has been launched wherein the Gotha brand
will undergo a marketing audit to ensure its attractiveness to its target market through the new sales
channels that have been unlocked. This exercise will be done in collaboration with a renowned
advertising house.

The Go Life Health Kiosks have produced exceptional results, not only as a sales channel, but also as a
source of market intelligence to further improve our offerings to the market. The expansion of the Health
Kiosks into the Eastern Cape and Gauteng is already at an advanced stage.

To further enhance its offerings, the Company is pursuing a strategy aimed at acquiring businesses or,
where merited, securing relationships with strategically aligned entities. By implementing this strategy, the
Company aims to expand its product range and service offerings and where warranted, retain the
expertise and knowledge of the founder members of those businesses (acquired entities), by absorbing
them into the Company’s structures.

DIVIDENDS
No dividends were authorized or paid during the period under review.
STATEMENT OF FINANCIAL POSITION

                                             THE GROUP         THE GROUP      THE GROUP      THE GROUP

                                             Unaudited         Unaudited      Unaudited        Audited
                                              6 MONTHS          6 MONTHS       3 MONTHS      12 MONTHS

                                        31 AUGUST 2018    31 August 2017    31 MAY 2018    28 Feb 2018
                                                   USD               USD            USD            USD
 ASSETS
 Non - Current Assets                       37 661 769        36 658 985     37 553 896     37 394 804
 Investments in Associates                     849 095           998 538        849 095        849 095
 Intangible Assets                          29 026 143        28 857 769     29 026 143     29 026 143
 Property Plant and Machinery                7 786 531         6 802 678      7 678 658      7 519 566


 Current Assets                              1 313 558           717 440      1 070 014        856 012

 Inventories                                   184 721                 -        136 789         96 830
 Trade and other Receivables                   245 381           334 642        231 567        172 698
 Cash and Cash Equivalents                     883 456           382 798        701 658        572 724
 Income taxes                                        -                 -              -         13 760


 TOTAL ASSETS                               38 975 327        37 376 425     38 623 910     38 250 816


 EQUITY


 Capital and Reserves                       34 953 410        34 176 400     34 594 621     34 478 762
 Share Capital                              34 965 300        34 965 300     34 965 300     34 965 300
 Accumulated Deficit                           (11 890)         (795 900)      (370 679)      (486 538)
 Non Distributable Reserves                          -                 -              -              -
 Foreign Currency Translation Reserve                -                 -              -              -


 LIABILITIES


 Non - Current Liabilities                   3 612 296         2 988 122      3 692 521      3 424 784
 Loan - Shareholders                         3 487 325         2 988 122      3 567 550      3 424 784
 Loan – third party                            124 971                 -        124 971              -

 
 Current Liabilities                           409 623           218 903        336 768        347 269
 Trade and other Payables                      409 623           218 903        336 768        241 299
 Income Tax                                          -                 -              -        105 970


 TOTAL EQUITY AND LIABILITIES               38 975 327        37 376 425     38 623 910     38 250 816

STATEMENT OF PROFIT / LOSS AND OTHER COMPREHENSIVE INCOME

                                        THE GROUP              THE GROUP            THE GROUP          THE GROUP          THE GROUP

                                        Unaudited              Unaudited            Unaudited          Unaudited            Audited
                                         6 MONTHS               6 MONTHS             3 MONTHS           3 MONTHS          12 MONTHS

                                   31 AUGUST 2018         31 August 2017          31 MAY 2018        31 MAY 2017        28 Feb 2018
                                              USD                    USD                  USD                USD                USD
  Revenue                               1 270 983                438 169              572 287            343 730          1 819 213
  Expenses                               (783 784)              (280 194)            (401 535)          (193 523)        (1 015 261)
  PROFIT FROM
  OPERATIONS                              487 199                157 975              170 752            150 207            803 952
  Share of profits -
  Associates                               78 569                 32 393               29 363             28 235            190 565
  Finance Income                                -                      -                  508              2 565                  -
  Finance costs                          (206 981)               (71 064)             (84 764)           (71 064)          (313 103)
  PROFIT BEFORE
  TAXATION                                358 787                119 304              115 859            109 944            681 414
  Taxation                                      -                      -                    -                  -           (105 970)
  NET PROFIT AFTER
  TAXATION                                358 787                119 304              115 859            109 944            575 445
  Other Comprehensive
  income                                        -                      -                    -                  -                  -
  TOTAL COMPREHENSIVE
  INCOME FOR THE
  PERIOD                                  358 787                119 304              115 859            109 944            575 445

RECONCILIATION OF BASIC EARNINGS TO HEADLINE EARNINGS

                                                         THE GROUP             THE GROUP            THE GROUP            THE GROUP
                                                         Unaudited             Unaudited            Unaudited              Audited
                                                          6 MONTHS              6 MONTHS             3 MONTHS            12 MONTHS

                                                    31 August 2018        31 August 2017          31 MAY 2018           28 Feb 2018
                                                               USD                   USD                  USD                   USD
  Basic earnings                                           358 787               119 304              115 859               575 445
  Headline earnings                                        358 787               119 304              115 859               575 445
  Weighted average number of shares                    900 000 000           900 000 000          900 000 000           900 000 000
  Basic and diluted earnings per share (USD
  cents)                                                    0.0399                0.0133               0.0128                0.0639
  Headline earnings per share (USD cents)                   0.0399                0.0133               0.0128                0.0639

STATEMENT OF CASH FLOWS

                                           THE GROUP          THE GROUP           THE GROUP           THE GROUP          THE GROUP
                                           Unaudited          Unaudited           Unaudited           Unaudited            Audited
                                            6 MONTHS           6 MONTHS            3 MONTHS            3 MONTHS          12 MONTHS

                                      31 AUGUST 2018     31 August 2017         31 MAY 2018         31 MAY 2017        28 Feb 2018
                                                 USD                USD                                     USD                USD
  Net Cash from / (used in)
  other operating activities                  95 717             86 911              51 689             (24 595)           187 623
  Investing activities
  Property, plant and
  equipment                                    5 749              3 722               2 879               2 377              2 303
  Movement in net cash
  resources                                  101 476             90 633              54 568             (22 218)           189 926
  Balance at the start of the
  year                                       627 292            415 624             572 724             383 922            382 798
  Balance at the end of the year             728 768            386 796             627 292             361 704            572 724

STATEMENT OF CHANGES IN EQUITY

                                                                    Share             Revenue               Total
                                                                      USD                 USD                 USD
  Balance as at 31 May 2018                                    34 965 300            (370 677)         34 594 623


  Balance as at 28 February 2018                               34 965 300            (486 536)         34 478 764
  Total Comprehensive Income for the period                             -             474 646             474 646

  Balance as at 31 August 2018
                                                               34 965 300             (11 890)         34 953 410

SEGMENTAL REPORTING – 6 MONTHS ENDED 31 AUGUST 2018

                                                                                 Frail care
                                           Nutraceutical        Property                                Total
                                                                                  Associate
                                                     USD             USD                USD               USD
  Statement of net profit/loss
  Revenue                                        848 453         343 961             78 569         1 270 983
  Interest expenses                              (79 556)       (127 425)                 -          (206 981)
  Income Tax
  Net profit/(loss) for the period                63 682         216 536             78 569           358 787
  Statement of financial position
  Total Assets                                29 882 155       7 519 566            849 095        38 250 816
  Total Borrowings                             1 212 348       2 212 436                  -         3 424 784

SEGMENTAL REPORTING – 6 MONTHS ENDED 31 August 2017

                                                                                  Frail care
                                          Nutraceutical      Property                                  Total
                                                                                   Associate
                                                    USD           USD                    USD             USD
 Statement of net profit/loss
 Revenue                                        216 938       188 838                 32 393         438 169
 Interest expenses                                    -       (71 064)                     -         (71 064)
 Income Tax                                           -             -                      -               -
 Net profit/(loss) for the period               (20 049)      105 654                 32 393         117 998
 Statement of financial
 position
 Total Assets                                29 582 209     6 802 678                998 538      37 383 425
 Total Borrowings                                     -    (2 988 122)                     -      (2 988 122)
 

SEGMENTAL REPORTING – 3 MONTHS ENDED 31 MAY 2018

                                                                                  Frail care
                                           Nutraceutical         Property                                 Total
                                                                                   Associate
                                                     USD              USD                USD                USD
  Statement of net profit/loss
  Revenue                                        345 067          197 857             29 363            572 287
  Interest expenses                                    -          (84 764)                 -            (84 764)
  Income Tax                                           -                -                  -                  -
  Net profit/(loss) for the period               (26 597)         113 093             29 363            115 859
  Statement of financial position
  Total Assets                                29 882 155        7 519 566            849 095         38 250 816
  Total Borrowings                             1 212 348        2 212 436                  -          3 424 784

SEGMENTAL REPORTING – 3 MONTHS ENDED 31 MAY 2017

                                                                                        Frail care
                                              Nutraceutical            Property                                    Total
                                                                                        Associate
                                                        USD                   USD              USD                  USD
  Statement of net profit/loss
  Revenue                                            217 801             97 694             28 235              343 730
  Interest expenses                                         -          (71 064)                   -            (71 064)
  Income Tax                                                -                   -                 -                    -
  Net profit/(loss) for the period                   217 801             26 630             28 235              272 666
  Statement of financial position
  Total Assets                                    22 822 587          6 959 543            849 095           30 631 225
  Total Borrowings                                 2 212 436                    -                 -           2 212 436


SEGMENTAL REPORTING – 12 MONTHS ENDED 28 FEB 2018

                                               Nutraceutical        Property   Frail care Associate                Total
                                                         USD             USD                    USD                  USD
  Statement of net profit/loss
  Revenue                                            887 097         741 551                190 565            1 819 213
  Interest expenses                                        -         (71 064)                     -              (71 064)
  Income Tax                                               -        (105 970)                     -             (105 970)
  Net profit/(loss) for the period                  (179 637)        564 517                190 565              575 445
  Statement of financial position
  Total Assets                                    29 882 155       7 519 566                849 095           38 250 816
  Total Borrowings                                         -      (3 424 784)                     -           (3 424 784)

Notes
The Company is required to publish financial results for the 6 months ended 31 August 2018 in terms of
the Listing Rule 12.19 of the SEM. The abridged unaudited consolidated financial statements for the 3
months ended 31 August 2018 (“Financial Statements”) have been prepared in accordance with the
measurement and recognition requirements of International Financial Reporting Standards (“IFRS”), the
requirements of IAS 34: Interim Financial Reporting and the SEM Listing Rules and the JSE Listing
Requirements.

The accounting policies adopted in the preparation of the Financial Statements are in terms of IFRS and
are consistent with those applied in the preparation of the audited financial statements of the year
ended 28 February 2018.

Copies of the abridged unaudited consolidated financial statements for the 6 months ended 31 August
2018 and the statement of direct and indirect interests of each officer of the Company, pursuant to Rule
8(2)(m) of the Securities (Disclosure Obligations of Reporting Issuers) Rules 2007, are available free of
charge, upon request to the Company Secretary at the registered office of the Company at 5th Floor,
Atchia Building, Cnr Suffren & Eugene Laurent Streets, Port Louis 21001, Mauritius.

This communiqué is issued pursuant to SEM Listing Rules 11.3 and 12.20 and section 88 of the Securities
Act of Mauritius 2005. The Board accepts full responsibility for the accuracy of the information contained
in these Financial Statements. The Directors are not aware of any matters or circumstances arising
subsequent to the period ended 31 August 2018 that require any additional disclosure or adjustment to
the Financial Statements.

Go Life has its primary listing on the Stock Exchange Mauritius and a secondary listing on the AltX of the
JSE

By order of the Board

15 October 2018


Executive Directors:                                                         Non-Executive Directors:
Gerhard Jacobus Naudè                                                          Mohamed Yusuf Sooklall
Marthinus Johannes Wolmarans                                          Jean Daniel Laurent Paulin Marie
 
JSE Sponsor:
 Arbor Capital Sponsors Proprietary Limited

Date: 15/10/2018 02:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story