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Unaudited results for the six month period ended 31 May 2013 and withdrawal of cautionary announcement
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”)
UNAUDITED RESULTS FOR THE SIX MONTH PERIOD ENDED 31 MAY 2013 AND
WITHDRAWAL OF CAUTIONARY ANNOUNCEMENTS
The Board of Directors of Global are pleased to present the unaudited results of Global and
its Subsidiary (“the Group”) for the six month period ended 31 May 2013. Shareholders are
reminded that the company listed on 14 December 2012 and thus the comparative
information presented for the six months ended 31 May 2012 has been extracted from the
prospectus that was issued by the company on 3 December 2012.
Statement of comprehensive Income
6 months 12 months 6 months*
Unaudited Audited Reviewed
31 May 30 November 31 May 2012
2013 2012 R’000
R’000 R’000
Revenue 134 769 247 420 63 657
Cost of sales (107 406) (197 744) (17 596)
Gross profit 27 363 49 676 46 061
Other income 107 2 499 109
Operating expenses (7 746) (13 803) (27 543)
Operating profit before interest 19 724 38 372 18 627
Interest received 6 92 235
Finance costs (12 434) (21 543) (11 142)
Profit before taxation 7 296 16 921 7 720
Taxation (2 048) (6 662) (2 143)
Profit after taxation from continuing
business 5 248 10 259 5 577
Profit (loss) from discontinued business - (307) (89)
Profit for the year 5 248 9 952 5 488
Other comprehensive income/(loss) – fair
value adjustment - 799 -
Total comprehensive Income 5 248 10 751 5 488
Attributable earnings 5 248 10 751 5 488
Headline earnings reconciliation:
Attributable earnings 5 248 10 751 5 488
Other comprehensive income – fair value
adjustment - (799) -
Capital gains on the sale of investments - (2 152) -
Headline earnings 5 248 7 800 5 488
Per share information:
Headline earnings per share (cents) 15.10 311.54* 548 800.00*
Basic earnings per share (cents) 15.10 429.41* 548 800.00*
Weighted average number of shares in
issue 34 730 769 2 503 660* 1 000*
* - per share information as published in the prospectus is not meaningful as the company
was unlisted during the prior year with only 1 000 shares in issue and thus the information is
not comparable. The Company listed on 14 December 2012.
Condensed consolidated statement of financial position
Unaudited Audited Reviewed
31 May 2013 30 November 31 May 2012
R’000 2012 R’000 R’000
Assets
Non-current assets
Property, plant and equipment 402 003 378 370 348 908
Goodwill 6 941 6 941 6 941
Loans and advances to customers 14 911 15 857 -
Deferred tax 21 032 18 384 31 794
Other financial assets - - 2 589
Current assets
Inventory - - 950
Available for sale assets 4 520 4 520 -
Loans and advances to customers 3 859 5 889 -
Trade and other receivables 28 212 28 160 31 866
Cash and cash equivalents 5 730 1 724 2 996
Total assets 487 208 459 845 426 044
Equity and liabilities
Equity
Share capital 11 279 1 1
Retained earnings 63 877 58 629 53 366
Liabilities
Non-current liabilities
Other financial liabilities 258 440 234 702 176 290
Deferred tax 53 279 47 317 56 336
Loans from shareholders - - 11 935
Current liabilities
Loans from shareholders 4 731 10 429 -
Other financial liabilities 60 878 64 835 63 694
Current tax payable 197 197 51
Trade and other payables 34 527 43 245 64 371
Bank overdraft - 490 -
Total equity and liabilities 487 208 459 845 426 044
Per share information
Net asset value per share (cents per 214.73 186.13 169.42
share)
Tangible net asset value per share 194.90 164.09 147.38
(cents per share)
Number of shares in issue at period end 35 000 000 31 500 000 31 500 000*
* - assumed for purposes of comparison
Condensed consolidated statement of cash flows
Unaudited Audited Reviewed
31 May 2013 30 November 31 May 2012
2012
R’000 R’000 R’000
Cash generated from operating 36 074 43 914 51 328
activities
Cash generated from discontinuing - (307) -
operations
Cash used in investing activities (45 661) (104 120) (52 375)
Cash generated from/(used in) 14 083 54 353 (3 351)
financing activities
Total cash movement for the year 4 496 (6 159) (4 398)
Cash at the beginning of the year 1 234 7 394 7 394
Total cash at end of the year 5 730 1 234 2 996
Condensed consolidated statement of changes in equity
Non-
Share Retained Attributable to controlling Total share
capital income equity holders interest capital
R’000 R’000 R’000 R’000 R’000
Balance at 1 Dec
2011 1 47 878 47 879 - 47 879
Changes in equity
Profit for the year - 10 751 10 751 - 10 751
Total changes - 10 751 10 751 - 10 751
Balance at 30
November 2012 1 58 629 58 630 - 58 630
Issue of shares 11 278 - 11 278 - 11 278
Profit for the
period - 5 248 5 248 - 5 248
Balance at 31
May 2013 11 279 63 877 75 156 - 75 156
Prior year 6
months
Balance at 1 Dec
2011 1 47 878 47 879 - 47 879
Profit for the
period - 5 488 5 488 - 5 488
Balance at 31
May 1 53 366 53 367 - 53 367
1. BASIS OF PREPARATION
The board of directors is pleased to present the Group?s unaudited results for the six
month period ended 31 May 2013. The accounting policies adopted for purposes of this
report comply, and have been consistently applied in all material respects, with
International Financial Reporting Standards (“IFRS”). The abridged financial
statements have been prepared in accordance with the requirements of IAS 34 (Interim
Financial Reporting). The results are presented in Rand and the going concern
principal has been adopted in the preparation of the results.
The same accounting policies and methods of computation have been followed as
compared to the prior audited period namely 30 November 2012 as detailed in the
results announcement published on SENS on 1 March 2013 and the subsequent
change statement published on SENS on 27 March 2013. The results are unaudited
and therefore have not been reviewed by Horwath Leveton Boner
The financial results have been prepared by the financial director, Mr W Basson CA
(SA).
2. INDUSTRY AND BUSINESS OVERVIEW
Global listed on the Alternative Exchange („AltX?) of the Johannesburg Stock Exchange
(“JSE”) on 14 December 2012. Accordingly, these results are its first interim results as
a public listed company.
Global was initially incorporated as a private company on 15 February 2002 and was
converted by way of a special resolution to a public company on 1 November 2012.
Global has focused on project and structured finance since 1992. Under the motto “We
achieve that little extra” Global brings to bear a significant array of skills and experience
into its business ventures, backed by access to a vast network of local and
international financial institutions.
In September 2009 Global became part of the Inshare Proprietary Limited (“Inshare”)
group - a private investment holding enterprise that specialises in identifying
undervalued opportunities and invests in strong and sustainable annuity businesses.
Global is the holding company of Linde Financial Services Proprietary Limited (“LFS”),
a very successful asset finance company, specialising in the financing of Linde forklift
trucks. LFS is currently the only subsidiary of Global.
The company focuses on 5 distinct industry sectors, namely renewable energy,
agribusiness, industrial, infrastructure and financial services. During the second half of
2013, Global intends to finalise various transactions in the renewable energy and
agribusiness sectors. These transactions will be incorporated in Global and are
expected to have a positive impact on revenues and cash flows.
3. FINANCIAL RESULTS
Global is pleased to report that the profit performance of the Group approximates
expectations as set out in the profit estimate contained in the Company?s prospectus.
In accordance with further guidance in terms of IFRS, certain items contained in
operating expenses in May 2012 have, for the period ended 31 May 2013, been
reflected under revenue and, cost of sales, although the impact on the Group?s net
profit remains the same.
Shareholders are reminded that the Group removed certain of its non-core operations
in anticipation of the listing. Accordingly a comparison of income and expenditure with
the prior year figures is not considered to be meaningful to shareholders. However, the
main business of the Group has continued to grow with new rental contracts being
signed during the year under review as compared to the prior year. This is evident with
the growth in operating profit before interest.
Operating expenses have been well contained year on year, other than once off costs
that were incurred as part of the listing process.
Since November 2012, property, plant and equipment on the balance sheet increased
by 5.8%, primarily as a result of additional forklift trucks being acquired for the rental
book during the year. Other financial liabilities have similarly increased as a result of
the increased business.
Share capital has increased due to the issue of shares. This led to an increase in Cash
and cash equivalents and a decrease in shareholders loans.
It should be noted that the current portion of other financial liabilities reflected on the
balance sheet represents a 12 month accrual for finance associated with the Group?s
rental book. On the other side, Trade and Other Receivables only reflect approximately
one month of receivables arising from the matching rental contracts. The net current
liability position of the Group is thus considered to be sound as current liabilities will be
settled by ongoing monthly rental billings.
4. SEGMENTAL REPORTING
No segmental information has been reported as the Group currently operates
principally in one segment, namely forklift truck financing and associated transactions.
Income for the renewable energy, agribusiness, infrastructure and financial services
sectors, and any other income are below the quantitative threshold set by IFRS for
reporting.
5. DIRECTOR CHANGES
The current board is constituted as follows:
Name (Age) Date of appointment Position/title
Niels Penzhorn (40) 1 December 2009 Chief Executive Officer
Werner Petrus Basson (30) 14 November 2012 Chief Financial Officer
Marinus Cornelis Christoffel 13 February 2002 Chief Operating Officer
van Ettinger (65)
Alan Jerome Naidoo (35) 1 November 2012 Non-Executive Director
Andrew Alexander Maren 1 November 2012 Non-Executive Director
(37)
Gabriel Thono Magomola 1 November 2012 Independent Non-
(69) Executive Director
Gordon Kenneth Cunliffe 1 November 2012 Independent Non-
(64) Executive Director and
Chairman
There have been no changes to the board of directors in the period under review.
6. SHARE CAPITAL AND ISSUE/ REPURCHASE OF SHARES
During the period under review, the Company issued 3 500 000 new shares in Global
at an issue price of R2.00 per share as part of the listing of the Company. Global did
not repurchase any shares during the period under review.
7. DIVIDEND
The Company has not declared a dividend for the interim period ended 31 May 2013
(2012: RNil) in line with its stated intention in the prospectus.
8. LITIGATION
There is no litigation pending against the Company or its Subsidiary, which is expected
to have a material impact on the results of the Group.
9. CONTINGENT LIABILITIES
At the balance sheet date the Group does not have any contingent liabilities (2012:
RNil).
10. ANNUAL GENERAL MEETING
The Company held its Annual General Meeting on 23 May 2013 at IOM House, 6 St
Giles Street, Randburg, at 09h00, and as detailed in the announcement published on
SENS on 23 May 2013, all the ordinary and special resolutions presented in the notice
of annual general meeting were unanimously approved.
11. SUBSEQUENT EVENTS
There are no major events subsequent to 31 May 2013 that require disclosure.
12. FUTURE PROSPECTS
The directors of the Company believe that the Group has excellent prospects to
significantly expand its operations over the near term. Based on its current pipeline of
projects and initiatives and strong management skills, coupled with an excellent
reputation as well as a proven track record, it is expected that Global will generate solid
returns for its shareholders.
13. WITHDRAWAL OF CAUTIONARY ANNOUNCEMENTS
As detailed in the SENS announcement published on SENS on 11 July 2013 in relation
to the LFS transaction, shareholders are advised that the credit committee of the
funder of the BEE consortium identified a potential conflict as the funder operates in a
similar industry. The securing of the funding was a condition precedent of the
investment and thus the proposed investor cannot proceed with the acquisition of 30%
in LFS for R 22 million. Thus the detailed cautionary announcement is withdrawn. In
addition, the further cautionary announcement is also withdrawn.
By order of the Board
GK Cunliffe N Penzhorn
Chairman Chief Executive Officer
Johannesburg
31 July 2013
Registered Office
Ruimsig Country Office Park
Block E
129 Hole in One Avenue
Ruimsig
Roodepoort
1724
Directors
G.K. Cunliffe*; M.C.C van Ettinger; N. Penzhorn; W.P Basson; G.T Magomola*;
A.A Maren*; A.J Naidoo*
* - independent non-executive
Designated Advisor Transfer Office
Arcay Moela Sponsors Proprietary Limited Link Market Services Proprietary Limited
Date: 01/08/2013 08:30:00 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.
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