Wrap Text
Audited Condensed Results for the Year Ended 30 November 2018
GLOBAL ASSET MANAGEMENT LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2002/003192/06)
Share Code: GAM ISIN: ZAE000173498
(“Global” or “the Company” or “the Group”)
AUDITED CONDENSED RESULTS FOR THE YEAR ENDED 30 NOVEMBER 2018
The Board of Directors of Global (“Board”) presents the audited condensed results of Global and its
subsidiaries for the year ended 30 November 2018.
The 2017 condensed consolidated statement of profit or loss and other comprehensive income has been
re-presented in line with the requirements of IFRS 5: Assets held-for-sale and discontinued operations.
Refer to note 3 and note 7 of this results announcement.
Condensed consolidated statement of profit or loss and other comprehensive income
Re-presented
2018 2017
Notes R’ R’
Continuing operations
Revenue 3 297 807 482 977
Cost of sales - -
Gross profit 3 297 807 482 977
Other income 1 381 524 1 915 159
Gain due to loss of control of subsidiary - 3 709 422
Operating expenses (17 761 315) (9 017 223)
Operating loss (13 081 984) (2 909 665)
Finance income 2 853 802 1 574 791
Finance costs (1 488 895) (743 001)
Loss before tax (11 717 077) (2 077 875)
Income tax benefit 1 723 107 1 120 455
Loss for the period from continuing operations (9 993 970) (957 420)
Discontinued operations
(Loss)/ profit for the year from discontinued operations 3 (39 676 135) 7 388 224
(Loss)/ profit and total comprehensive (loss)/ income for the year (49 670 105) 6 430 804
(Loss)/ profit and total comprehensive (loss)/ income attributable
to:
Equity holders of the parent from continuing operations (7 900 322) (420 263)
Equity holders of the parent from discontinued operations (39 676 135) 7 388 224
Equity holders of the parent (47 576 457) 6 967 961
Non-controlling interest (2 093 648) (537 157)
(Loss)/ profit and total comprehensive (loss)/ income for the year (49 670 105) 6 430 804
Basic and diluted (loss)/ earnings per share (cents) from:
Continuing and discontinued operations 5 (64.3) 10.8
Continuing operations 5 (10.7) (0.7)
Condensed consolidated statement of financial position
2018 2017
Notes R’ R’
ASSETS
Non-current assets 104 524 423 476 925 632
Property, plant and equipment 2 57 311 965 413 642 734
Goodwill 37 959 099 37 959 099
Intangible asset - 824 164
Investment in equity accounted investees 204 961 204 961
Loans and advances to customers - 21 157 886
Trade and other receivables 3 404 615 -
Deferred tax asset 5 643 783 3 136 788
Current assets 41 858 448 103 846 824
Trade and other receivables 3 602 665 41 852 483
Other financial assets 36 047 378 21 506 484
Cash and cash equivalents - 39 427 737
Inventories 2 208 405 1 060 120
Assets classified as held-for-sale 3 330 935 705 -
Total assets 477 318 576 580 772 456
EQUITY AND LIABILITIES
Equity
Share capital 4 100 836 971 96 999 130
Retained earnings 48 621 654 97 510 649
Total equity attributable to equity holders of the parent
149 458 625 194 509 779
Non-controlling interest 30 113 908 34 022 502
Total equity 179 572 533 228 532 281
Liabilities
Non-current liabilities 10 817 315 236 723 520
Loans payable 8 255 206 192 623 561
Contingent consideration payable 745 353 1 321 023
Deferred tax liability 1 816 756 42 778 936
Current liabilities 23 871 811 115 516 655
Trade and other payables 9 118 334 20 269 270
Loans payable 606 127 90 303 061
Other financial liabilities 12 968 088 3 154 763
Bank overdraft 1 174 554 -
Current tax liability 4 708 1 789 561
Liabilities associated with assets held- for-sale 3 263 056 917 -
Total equity and liabilities 477 318 576 580 772 456
Condensed consolidated statement of changes in equity
Shareholders’
interest
Common before non Non-
control Retained controlling controlling
Share capital reserve earnings interest interest Total equity
R’ R’ R’ R’ R’ R’
Balances at 30 November 2016 57 207 811 (6 941 028) 96 629 418 146 896 201 1 461 073 148 357 274
Issue of ordinary shares 40 000 000 - - 40 000 000 - 40 000 000
Share issue expenses (208 681) - - (208 681) - (208 681)
Equity-settled share-based payment - - 1 040 552 1 040 552 - 1 040 552
Previously recognised losses
transferred to non-controlling interest
due to a loss of control - - (186 254) (186 254) 186 254 -
Non-controlling interest arising from
change in ownership interest that
does not result in a loss of control - - - - 32 912 332 32 912 332
Transfer of common control reserve
to retained earning - 6 941 028 (6 941 028) - - -
Total comprehensive income and
profit for the period - - 6 967 961 6 967 961 (537 157) 6 430 804
Total changes 39 791 319 6 941 028 881 231 47 613 578 32 561 429 80 175 007
Balances at 30 November 2017 96 999 130 - 97 510 649 194 509 779 34 022 502 228 532 281
Issue of ordinary shares 4 230 022 - - 4 230 022 - 4 230 022
Share issue expenses (392 181) - - (392 181) - (392 181)
Acquisition of non-controlling interest
without change in control - - (1 312 538) (1 312 538) (1 814 946) (3 127 484)
Total comprehensive loss and loss
for the period - - (47 576 457) (47 576 457) (2 093 648) (49 670 105)
Total changes 3 837 841 - (48 888 995) (45 051 154) (3 908 594) (48 959 748)
Balances at 30 November 2018 100 836 971 - 48 621 654 149 458 625 30 113 908 179 572 533
Note: 4
Condensed consolidated statement of cash flows
2018 2017
R’ R’
Cash flows from operating activities
Cash generated from operations 115 342 588 117 456 669
Finance income 2 853 802 1 574 791
Finance costs (23 476 423) (29 982 122)
Tax benefit 1 779 778 1 470 715
Net cash from operating activities 96 499 745 90 520 053
Cash flows from investing activities
Acquisition of property, plant and equipment (28 991 224) (8 652 055)
Loans advanced to related parties (18 200 559) (5 578 545)
Acquisition of a subsidiary, no cash acquired (6 661 079) -
Net cash utilised in investing activities (53 852 862) (14 230 600)
Cash flows from financing activities
Acquisition of non-controlling interest (200 000) -
Proceeds from issue of share capital 2 327 543 28 854 171
Payment of share issue expenses (392 181) (208 681)
Proceeds from shares issued to non-
- 20 500 000
controlling interest
Proceeds from disposal of partial interest in
- 12 702 000
subsidiary
Repayment of loans payable (88 647 861) (104 561 927)
Proceeds from other financial liabilities 12 968 088 -
Repayment of loans from related parties (3 154 763) (2 368 055)
Net cash applied to financing activities (77 099 174) (45 082 492)
Total cash movement for the period (34 452 291) 31 206 961
Cash at the beginning of the period 39 427 737 8 220 776
Cash balance included in assets classified as held-
for-sale (6 150 000) -
Cash deficit at the end of the period (1 174 554) 39 427 737
1. BASIS OF PREPARATION
The Board of Directors presents the Group’s audited condensed results for the year ended
30 November 2018, which have been prepared in accordance with the framework concepts, the
measurement and recognition requirements of International Financial Reporting Standards
(“IFRS”) and the presentation and disclosure requirements of IAS 34 on Interim Financial
Reporting, and its interpretations issued by the International Accounting Standards Board
(“IASB”); the SAICA Financial Reporting Guides as issued by the Accounting Practices
Committee; Financial Pronouncements as issued by the Financial Reporting Standards Council;
the Companies Act of South Africa, No. 71 of 2018 (“Companies Act”), as amended; and the JSE
Limited (“JSE”) Listings Requirements.
The accounting policies applied in the preparation of these condensed consolidated financial
statements are in terms of IFRS and are consistent with those used in the prior year.
The results have been audited by Crowe JHB. Their unmodified audit report is available for
inspection at the Company’s registered office.
The financial results have been prepared by the financial director, Mr WP Basson CA (SA).
These audited condensed consolidated financial statements have been derived from the Group’s
annual financial statements. The contents of this announcement are extracted from audited
information, although the announcement is not itself audited. The directors take full responsibility
for the preparation of the provisional report and the financial information has been correctly
extracted from the underlying annual financial statements.
The auditor’s report does not necessarily report on all the information contained in this
announcement. Shareholders are therefore advised that, in order to obtain a full understanding of
the nature of the auditor’s engagement, they should obtain a copy of the auditor’s report together
with the accompanying financial information from the Company’s registered office.
2. PROPERTY, PLANT AND EQUIPMENT
Accumulated
Cost depreciation Carrying value
2018 R’ R’ R’
Furniture and fittings 14 180 (14 177) 3
IT equipment 250 162 (127 159) 123 003
Motor vehicles 464 886 (184 702) 280 184
Plant under construction 37 861 962 - 37 861 962
Leasehold improvements 3 883 340 (236 527) 3 646 813
Land 13 000 000 - 13 000 000
Buildings 2 400 000 - 2 400 000
57 874 530 (562 565) 57 311 965
Accumulated
Cost depreciation Carrying value
2017 R’ R’ R’
Forklifts 669 643 635 (270 682 114) 398 961 521
Furniture and fittings 59 317 (58 836) 481
IT equipment 532 425 (362 113) 170 312
Motor vehicles 428 465 (89 591) 338 874
Plant under construction 13 453 882 - 13 453 882
Leasehold improvements 816 224 (98 560) 717 664
684 933 948 (271 291 214) 413 642 734
Carrying amounts of property, plant and equipment can be reconciled as follows:
Reclassified as Transfers to Carrying
Carrying value assets held trading value closing
opening balance Additions Disposals** for sale operations* Depreciation balance
2018 R’ R’ R’ R’ R’ R’ R’
Forklifts 398 961 521 3 744 317 - (322 148 840) (20 367 729) (60 189 269)**** -
Furniture and fittings 481 114 307 - (108 698) - (6 087) 3
IT equipment 170 312 177 380 - (143 795) - (80 894) 123 003
Motor vehicles 338 874 471 010 - (405 617) - (124 083) 280 184
Plant under
construction 13 453 882 24 693 822 (285 742) - - - 37 861 962
Leasehold
improvements 717 664 3 533 704 - (349 941) - (254 614) 3 646 813
Land - 13 000 000 - - - - 13 000 000
Buildings - 2 400 000 - - - - 2 400 000
413 642 734 48 134 540 (285 742) (323 156 891) (20 367 729) (60 654 947) 57 311 965
Transfers to Carrying
Carrying value Trading value closing
opening balance Additions Impairment Disposals*** operations* Depreciation balance
2017 R’ R’ R’ R’ R’ R’ R’
Forklifts 425 029 039 71 994 300 (382 607) - (31 780 646) (65 898 565) 398 961 521
Furniture and fittings 2 219 - - - - (1 738) 481
IT equipment 28 831 164 953 - - - (23 472) 170 312
Motor vehicles 116 233 269 966 - - - (47 325) 338 874
Plant under
construction 15 099 049 7 995 622 - (9 640 789) - - 13 453 882
Leasehold
improvements - 816 224 - - - (98 560) 717 664
440 275 371 81 241 065 (382 607) (9 640 789) (31 780 646) (66 069 66 413 642 734
* Transfers to trading operations refer to the actual sales of new and used forklifts during the reporting period.
** Disposal of plant under construction to Enviroprotek (Pty) Ltd, a joint venture of the Group.
*** Disposal of plant under construction relates to the de-recognition of Enviroprotek (Pty) Ltd as a subsidiary due to the loss of
control.
***** Depreciation on forklifts is included in discontinued operations.
3. DISCONTINUED OPERATIONS AND ASSETS CLASSIFIED AS HELD-FOR-SALE
Discontinued operations
Asset finance business
The Group has classified its asset finance business as a disposal group held-for-sale in terms of
IFRS 5. The asset finance business, being LFS Assets (Pty) Ltd, relates to the rentals and
maintenance segment and the sale of forklifts segment. The Group has recognised an
impairment loss on initial classification of the asset finance business as held-for-sale at
30 November 2018.
The results of the discontinued operations included in the profit or loss are set out below. The
comparative profit and cash flows from discontinued operations have been re-presented to
include those operations classified as discontinued in the current year.
2018 2017
R’ R’
Profit for the year from discontinued operations:
Revenue 146 870 858 197 403 529
Cost of sales (106 688 703) (141 224 250)
Gross profit 40 182 155 56 179 279
Other income 366 857 430 341
Operating expenses (13 383 108) (16 622 024)
Income from operations 27 165 904 39 987 596
Finance costs (21 987 528) (29 839 103)
Profit before tax 5 178 376 10 148 493
Income tax expense (1 584 111) (2 760 269)
Profit for the year from discontinued operations (attributable to
owners of the parent) 3 594 265 7 388 224
Impairment loss (43 270 400) -
(Loss)/ profit for the year from discontinued operations (attributable
to owners of the parent) (39 676 135) 7 388 224
Summarised Statement of Cash Flows from discontinued operations:
Net cash inflow from operating activities 91 533 662 104 627 661
Net cash (outflow)/inflow from investing activities (1 129 596) 151 880
Net cash outflow from financing activities (88 844 694) (106 800 733)
Net cash inflow/ (outflow) for the periods 1 559 372 (2 021 192)
Assets classified as held-for-sale
At the reporting date, the directors of the Company valued the assets classified as held-for-sale
and the liabilities associated with the assets held-for-sale at fair value less costs to sell being
R67,8 million, based on the subscription price to the shares of the asset finance business as at
1 February 2019. This is lower than the carrying amount of the asset finance business, and
accordingly an impairment loss was recognised on initial classification of the asset finance
business as held-for-sale on 30 November 2018. The transaction is consistent with the Group’s
long-term strategy to focus its activities on the alternative energy market. The major classes of
assets and liabilities of the asset finance business at the reporting date are as follows:
2018
R’
Property, plant and equipment 279 969 098
Intangible asset 535 511
Loans and advances to customers 12 764 622
Trade and other receivables 31 516 474
Cash and cash equivalents 6 150 000
Assets classified as held-for-sale 330 935 705
Loans payable 194 495 221
Deferred tax liability 45 269 187
Trade and other payables 23 292 509
Liabilities associated with assets held-for-sale 263 056 917
Net assets of disposal group held-for-sale 67 878 788
4. SHARE CAPITAL
Authorised:
1 000 000 000 Ordinary shares at no par value,
1 000 000 000 Class A (fixed rate), 1 000 000 000 Class B (zero rate), 1 000 000 000 Class C
(variable rate), five year, redeemable, convertible, non-voting, non-participating preference
shares at no par value.
There are 924 340 931 (2017: 926 518 754) unissued ordinary shares in terms of the
memorandum of incorporation.
2018 2017 2018 2017
Number of shares Number of shares R’ R’
Issued:
Opening balance 73 481 246 54 157 575 96 999 130 57 207 811
Issued 2 177 823 19 323 671 3 837 841 39 791 319
Closing balance 75 659 069 73 481 246 100 836 971 96 999 130
Issued share capital consists of 75 659 069 (2017: 73 481 246) ordinary shares at no par value.
5. EARNINGS PER SHARE
2018 2017
R’ R’
(Loss)/ profit and total comprehensive (loss)/ income for the year (49 670 105) 6 430 804
Adjusted for:
Non-controlling interest 2 093 648 537 157
Basic (loss)/ earnings (47 576 457) 6 967 961
Adjusted for:
(Loss)/ profit for the year from discontinued operations used in the calculation of
basic earnings 39 676 135 (7 388 224)
Basic earnings from continuing operations (7 900 322) (420 263)
Adjusted for:
Impairment of financial assets 3 659 665
Gain due loss of control of subsidiary - (3 709 422)
Non-controlling interest on gain on loss of control of subsidiary - 352 395
Headline earnings from continuing operations (4 240 657) (3 777 290)
(Loss)/ profit for the year from discontinued operations (39 676 135) 7 388 224
Adjusted for:
Impairment loss on initial classification as discontinued operations 43 270 400 -
Impairment of used forklifts - 382 607
Tax effect on the impairment of used forklifts - (107 130)
Headline earnings from discontinued operations 3 594 265 7 663 701
Headline earnings from continuing and discontinued operations (646 392) 3 886 411
2018 2017
Weighted average number of ordinary shares 74 007 421 64 216 472
Basic and diluted earnings/(loss) per share (cents)
2018 2017
From continuing operations (10.7) (0.7)
From discontinued operations (53.6) 11.5
From continuing and discontinued operations (64.3) 10.8
Headline earnings/ (loss) per share (cents)
2018 2017
From continuing operations (5.7) (5.9)
From discontinuing operations 4.9 11.9
From continuing and discontinued operations (0.8) 6.0
There are no instruments in issue that would cause a dilutive effect.
6. BUSINESS OVERVIEW
Global has made good progress during the period, establishing its renewable energy businesses
which focus on waste-to-energy solutions. A rising oil price has significantly added to projected
future cashflows, whereas increasing capex costs and project delays have negatively impacted
on projected returns.
Enviroprotek (Pty) Ltd (“EPT”) has closed its operations in Springs and has re-established its
recycling reactors in Nigel, the newly acquired industrial site. The company has used this
opportunity to further enhance its process flows, with special emphasis being placed on the
upgrading of the initial rubber recycling reactor, to be on par with the second reactor in terms of
process time and product quality. The facility is scheduled to recycle up to 500 tons per month of
waste rubber. The carbon refinement project has achieved satisfactory results and EPT has
distributed commercial samples to potential customers for testing.
Plastics Green Energy (Pty) Ltd (“PGE”) has successfully concluded its pilot plant campaign and
has commenced with the construction of its commercial recycling facility in Nigel. Oil samples of
its sulphur free, high quality industrial fuel oil have been prepared and sent to customers for
testing. The waste plastic supply agreements have been finalised and approx. 2 000 tons of
waste plastic feedstock has been sourced and stored to date. Given the rise in fuel prices as well
as the current hype around the detrimental impact of plastic waste on the environment, PGE is in
an ideal position of providing an end-of-life solution to the plastics industry.
Heliosek (Pty) Ltd has completed the design for its initial pilot plant to be established during 2019.
The technology allows for the highly efficient exploitation of the unlimited solar resource base of
Southern Africa and creates an opportunity for expansion into other international jurisdictions.
The technology offers an alternative to existing solar energy and other renewable energy
solutions at a lower comparative cost.
The performance of LFS Assets (Pty) Ltd (“LFS”), Global’s largest subsidiary by assets which
focuses on asset financing in the logistics sector, has deteriorated slightly. Revenue decreased
from R197 million in 2017 to R147 million in 2018 over the comparative 12 month period from
December 2017 to November 2018. This is due to the fact that hardly any new financing deals
have been closed, since Linde Material Handling South Africa (Pty) Ltd (“LMH”) had given notice
to LFS in terms of the Country Brand Agreement, under which LFS has leased Linde forklift
trucks on an exclusive basis to customers over the past 12 years. LFS has employed additional
resources to manage its second hand fleet of roughly 600 trucks independently of LMH, and will
also investigate the opportunity of funding logistics assets from other manufacturers, as well as
renewable energy assets.
7. FINANCIAL RESULTS
Points of interest:
Asset finance business
Global classified its asset finance business in terms of IFRS 5, with the transaction being in line
with the Group’s long-term strategy to focus on its renewable energy business. The transaction
results in Main Street 1236 (Pty) Ltd becoming the controlling shareholder in LFS as at
1 February 2019. The consideration for the shares is R67.2 million.
Acquisition of Jabumart (Pty) Limited (“Jabumart”)
The Group acquired all the shares in issue of Jabumart. The transaction had certain conditions
precedent of which the final condition, being the transfer of a property into Jabumart, was met on
11 December 2017. The property is used by the Group as the processing site for its plastic-to-oil
and rubber-to-oil pyrolysis operations.
Rights offer
The Company decided to raise equity by way of a Renounceable Rights Offer (“Rights Offer”) in
June 2018.
In terms of the Rights Offer, Global shareholders were entitled to subscribe for Rights Offer
shares on the basis of 50 Rights Offer shares for every 100 Global shares held on such date at a
Rights Offer price of R1.83 per Rights Offer share. The number of Rights Offer shares subscribed
to by existing holders were 1 271 881, raising R2.3 million, which resulted in the increase of
ordinary share capital. R0,3 million equity raising costs were capitalised against ordinary share
capital in this regard. ARC did not follow its rights at the time as it did not want to trigger a
mandatory offer. However, shareholders are referred to Subsequent Events below. The Rights
Offer price was at a substantial discount to the net asset value and tangible net asset value of
264.7 cents per share and 211.9 cents per share respectively.
Offer to the Earthwize Energy Holdings (Pty) Limited (“Earthwize Energy Holdings”)
minority shareholder
The only remaining minority shareholder in Earthwize Energy Holdings accepted an offer made
by Global to buy its 4.75% interest in Earthwize Energy Holdings. This offer also included the
settlement of any current and future legal matters that the shareholder or its representative had or
might have in future. The R2 million offer will be settled through a combination of Global shares
and cash, payable by August 2019. The non-controlling interest of the minority shareholder is
currently recorded at approx. R1.8 million.
Offer to the Total Rubber Recycle (Pty) Limited (“Total Rubber Recycle”) minority
shareholders
The Total Rubber Recycle minority shareholders have agreed to part with their 9.5% interest in
Total Rubber Recycle in exchange for Global shares. The number of Global shares issued is in
line with the Group’s latest valuations and as approved by an independent expert.
Other points of interest:
• Global recorded a loss after taxation from continuing operations attributable to equity holders of
the parent of R7.9 million for the twelve months ended 30 November 2018, as a result of
incurring operational and development costs on its renewable energy businesses in the Group
and a provision against a loan receivable.
• Property, plant and equipment in the statement of financial position has decreased with the re-
classification of the disposal group held for sale. The remainder of the property plant and
equipment consists mainly of plant under construction and land and buildings.
• Cash and cash equivalents decreased with the acquisition of Jabumart, the roll-out of the plastic-
to-oil and rubber-to-oil operations, and the elimination of the cash balance included in the
disposal group held for sale respectively. The capitalisation of the plastic-to-oil operation has
been delayed due to funding constraints. Fund raising efforts are still ongoing in order to fully
capitalise the renewable energy businesses.
• The net asset value per share has decreased by 25.3% from 264.7 cents per share as at
November 2017 to 197.7 cents per share as at November 2018. The main reason for the
decrease relates to the loss on re-classification of the asset finance business in terms of IFRS 5
Refer to note 3
• The contingent consideration payable forms part of the consideration transferred in acquiring the
controlling interest in Earthwize Energy Holdings where GAM will allot shares and make a cash
payment if certain performance criteria are met within 6 years (from December 2015) of acquiring
the majority interest in Earthwize Energy Holdings.
The increase in other financial liabilities relates to a loan from ARC. The purpose of the loan is to
support the current operations and the roll out of the renewable energy projects.
8. SEGMENT REPORT
Segment information has been reported by the Group in the following segments, namely rentals
and maintenance, sale of forklifts, renewable energy and other income. The rentals and
maintenance and sale of forklift trucks segments have been classified as discontinued
operations.
Discontinued operations Continuing operations
Rentals and Sale of Renewable
maintenance forklifts Intergroup Total energy Other Intergroup Total
2018 R’ R’ R’ R’ R’ R’ R’ R’
Revenue 143 285 384 15 569 917 (11 984 443) 146 870 858 4 075 900 7 364 286 (8 142 379) 3 297 807
Cost of sales (98 305 417) (20 367 729) 11 984 443 (106 688 703) - - - -
Gross
profit/(loss) 44 979 967 (4 797 812) - 40 182 155 4 075 900 7 364 286 (8 142 379) 3 297 807
Finance income - - - - 2 194 160 3 595 642 (2 936 000) 2 853 802
Finance costs (21 987 528) - - (21 987 528) (2 935 999) (1 488 896) 2 936 000 (1 488 895)
Operating expense
and other income (13 016 251) - - (13 016 251) (14 253 604) (10 268 566) 8 142 379 (16 379 791)
Loss on re-
classification to
discontinued
operations (43 270 400) - - (43 270 400) - - - -
Income tax
expense benefit/
(expense) (2 610 140) 1 026 029 - (1 584 111) 1 421 566 301 541 - 1 723 107
Loss after tax (35 904 352) (3 771 783) - (39 676 135) (9 497 977) (495 993) - (9 993 970)
Depreciation a
impairment (60 852 495 - - (60 852 495) - (272 240) - (272 240)
Additional
information
Additions to
property plant and
equipment 4 873 913 - - 4 873 913 27 760 941 15 499 686 - 43 260 627
Investment in
equity-accounted
investees - - - - 204 961 - - 204 961
Total segment
assets 331 117 809 - (182 104) 330 935 705 92 166 649 194 690 250 (140 474 028) 146 382 871
Segment assets 331 117 809 - (182 104) 330 935 705 86 522 866 194 690 250 (140 474 028) 140 739 088
Deferred tax asset - - - - 5 643 783 - - 5 643 783
Total segment
liabilities (270 246 389) - 7 189 472 (263 056 917) (77 695 117) (42 445 478) 85 451 469 (34 689 126)
Segment liabilities (224 977 202) - 7 189 472 (217 787 730) (77 695 117) (31 707 542) 76 530 289 (32 872 370)
Deferred tax
liability (45 269 187) - - (45 269 187) - (10 737 936) 8 921 180 (1 816 756)
Discontinued operations Continuing operations
Rentals and Sale of Renewable
maintenance forklifts Intergroup Total energy Other Intergroup Total
2017 R’ R’ R’ R' R’ R’ R’ R’
Revenue 185 311 874 32 930 636 (20 838 981) 197 403 529 - 8 464 762 (7 981 785) 482 977
Cost of sales (130 253 298) (31 809 933) 20 838 981 (141 224 250) - - - -
Gross profit/(loss) 55 058 576 1 120 703 - 56 179 279 - 8 464 762 (7 981 785) 482 977
Finance income - - - - 1 408 547 1 860 609 (1 694 365) 1 574 791
Finance costs (29 839 103) - - (29 839 103) (1 686 837) (750 529) 1 694 365 (743 001)
Operating expense and
other income (16 191 683) - - (16 191 683) (7 037 794) (4 336 633) 7 981 785 (3 392 642)
Income tax expense
benefit/ (expense) (2 532 561) (227 708) - (2 760 269) 1 486 505 (366 050) - 1 120 455
Profit/(loss) after tax 6 495 229 892 995 - 7 388 224 (5 829 579) 4 872 159 - (957 420)
Depreciation and
impairment (66 281 172) - - (66 281 172) - (171 095) - (171 095)
Additional information
Additions to property
plant and equipment 71 994 300 - - 71 994 300 8 130 906 1 115 859 - 9 246 765
Investment in equity
accounted investees - - - - 204 961 - - 204 961
Total segment assets 456 020 000 - (236 795) 455 783 205 65 959 377 163 108 496 (104 078 622) 124 989 251
Segment assets 456 020 000 - (236 795) 455 783 205 62 822 589 163 108 496 (104 078 622) 121 852 463
Deferred tax asset - - - - 3 136 788 - - 3 136 788
Total segment
liabilities (363 609 035) - 4 205 471 (359 403 564) (41 977 238) (20 261 041) 55 074 890 (7 163 389)
Segment liability (311 908 919) - 4 205 471 (307 703 448) (41 977 238) (11 339 861) 46 153 710 (7 163 389)
Deferred tax liability (51 700 116) - - (51 700 116) - (8 921 180) 8 921 180 -
9. RELATED PARTY TRANSACTIONS
The related party transactions during the period ended 30 November 2018, do not materially
deviate from the transactions as reflected in the financial statements for the year ended
30 November 2017.
The Group’s consolidated financial statements for the year ended 30 November 2017 contains
details of the Group’s related party relationships and should be read in conjunction with this
report.
10. DIRECTORS
During the year under review, the Board of directors was constituted as follows:
Name Position/title
N Penzhorn Chief Executive Officer
WP Basson Chief Financial Officer
MCC van Ettinger Chief Operating Officer
MJ Reyneke Non-Executive Director
NB Matyolo Non-Executive Director
CJP Cilliers* Non-Executive Director
AJ Naidoo Independent Non-Executive Director
GT Magomola Independent Non-Executive Director
GK Cunliffe Independent Non-Executive Director and Chairman
* Appointed with effect from 23 February 2018, resigned with effect from 21 November 2018.
11. SHARE CAPITAL / REPURCHASE OF SHARES
2 177 823 Global shares (constituting approximately 2.96% of Global’s shares following such
subscription) were issued for a consideration of R4 230 022.
At the Annual General Meeting of the Company which was held on 11 July 2018, the requisite
majority of shareholders approved an ordinary resolution authorising the Directors to issue
shares for cash in accordance with the JSE Listings Requirements.
During the year under review, the Company did not repurchase any shares.
12. DIVIDEND
The Company did not declare a dividend for the year ended 30 November 2018 (2017: R Nil).
13. LITIGATION
There is currently litigation pending concerning LFS. This will have no impact on the Group for
the reasons disclosed in note 3 and note 7.
There is no other litigation pending that is likely to have a material impact on the results of the
Group.
14. CONTINGENT LIABILITIES AND COMMITMENTS
The Group had no commitments at 30 November 2018, (2017: R Nil), however due to the
development of the pyrolysis plants the Group expects to incurred capital expenditure of
approximately R87 million, subject to funding being obtained.
15. SUBSEQUENT EVENTS
An accelerated specific issue of shares for cash
UBI General Partner (Pty) Ltd, on behalf of the ARC Fund (“ARC”), has agreed to a subscription
for 27 322 404 Global shares for cash, at an issue price of R1.83 per share, for an aggregate
amount of R50 million (“Specific Issue”). The proposed subscription will result in ARC holding
approximately 45.30% of the entire issued share capital of Global.
Loan from ARC
Subsequent to the reporting date, ARC advanced R7.5 million of short-term funding to the Group.
The purpose of the loan is to support the current operations and roll out of the renewable energy
businesses.
Asset finance business
Refer to note 3 for the details on the IFRS 5 classification of the asset finance business.
There are no other major events subsequent to 30 November 2018 that require disclosure.
16. FUTURE PROSPECTS
The Global Group will continue to establish its renewable energy businesses at an accelerated
pace, once the above mentioned funding initiatives are finalised. Following the commissioning of
the second waste tyre recycling plant, the main focus will be on the construction and
commissioning of the commercial waste plastic recycling facility.
The Board believes that the Group has excellent prospects to significantly expand its operations
over the near term. With a renewed worldwide focus on recycling, the management of waste
streams and rising energy prices, Global is well placed to exploit attractive opportunities, also
internationally.
This prospects statement has neither been reviewed nor audited by the Company’s auditors.
By order of the Board
GK Cunliffe N Penzhorn
Chairman Chief Executive Officer
Johannesburg
13 March 2019
Registered Office
Building 2, Clearwater Office Park
Cnr Christiaan de Wet & Millennium Boulevard
Strubensvalley
Roodepoort, 1724
Directors
GK Cunliffe*; N Penzhorn; MCC van Ettinger; WP Basson; GT Magomola*; AJ Naidoo*; MJ Reyneke^;
NB Matyolo^
* - independent non-executive, ^ - non-executive
Designated Advisor Transfer Office
Arbor Capital Sponsors Proprietary Limited Link Market Services Proprietary Limited
Date: 13/03/2019 01:09:00 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.