Wrap Text
Reviewed Results for the year ended 30 November 2013
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”)
REVIEWED RESULTS FOR THE YEAR ENDED 30 NOVEMBER 2013
The Board of Directors of Global is pleased to present the reviewed results of Global and its Subsidiary
(“the Group”) for the year ended 30 November 2013. The Statement of comprehensive income,
Statement of financial position, Statement of changes in equity and Cash flow statement for 30 November
2012 have been restated for reallocations as well as a change in the taxation charge, details of which are
set out below.
Statement of comprehensive income
Reviewed Restated
Group Group
2013 2012
R’ R’
Revenue 177,217,074 185,765,536
Cost of Sales 112,497,611 136,089,488
Gross Profit 64,719,463 49,676,048
Other income 638,868 2,498,819
Operating expenses (22,894,949) (13,803,045)
Income from operations 42,463,382 38,371,822
Investment revenue 7,217 92,678
Finance costs (24,407,843) (21,542,699)
Profit before taxation 18,062,756 16,921,801
Taxation expense (4,811,163) (4,835,134)
Profit from continuing operations 13,251,593 12,086,667
Discontinued Operations
Loss for the year from discontinuing operations - (307,127)
Profit for the year 13,251,593 11,779,540
Other comprehensive income - 798,813
Available-for-sale fair value adjustment - 798,813
Total comprehensive income 13,251,593 12,578,353
Total comprehensive income attributable to: 13,251,593 12,578,353
Equity holders of the parent 13,251,593 12,578,353
Attributable earnings per share (cents) 37,6 470,5
Headline earnings per share (cents) 45,5 400,5
Weighted average shares in issue* 35 220 790 2 503 660
* Shareholders are reminded that the company only listed on 14 December 2012 and thus the weighted
average shares in issue and earnings per share information is not comparable.
Condensed consolidated statement of financial position
Reviewed Restated Restated
Group Group Group
2013 2012 2011
Note R’ R’ R’
ASSETS
Non-current assets 445,493,494 412,610,563 345,886,710
Property, plant and equipment 2 409,072,068 378,369,815 318,525,578
Intangible assets 1,000,000 - -
Loans and advances to customers 16,991,006 15,856,595 10,972,189
Deferred taxation 18,430,420 18,384,153 16,388,943
Current assets 54,714,439 40,293,547 33,947,144
Assets classified as held for sale - 4,520,519 3,538,596
Loans and advances to customers 5,128,873 5,888,920 4,506,429
Trade and other receivables 31,175,302 28,159,807 18,508,358
Cash and cash equivalents 18,410,264 1,724,301 7,393,761
Disposal group held for sale 4,889,030 - -
Total assets 505,096,963 452,904,110 379,833,854
EQUITY AND LIABILITIES
Equity
Ordinary share capital 3 31,942,487 4,279,276 1,500
Reserves 66,766,533 53,514,940 40,936,587
Total equity attributable to equity
holders of the parent 98,709,020 57,794,216 40,938,087
Liabilities
Non-current liabilities 275,063,434 280,192,392 211,410,643
Deferred tax liability 50,845,387 46,755,018 40,086,553
Other financial liabilities 224,218,047 233,437,374 171,324,090
Current liabilities 130,564,839 114,917,502 127,485,124
Loan from holding company 1,352,207 6,151,255 14,677,195
Other financial liabilities 86,122,708 64,835,271 68,003,260
Bank overdraft – 489,497 -
Trade and other payables 42,532,159 43,244,717 44,428,056
Taxation payable 557,765 196,762 376,613
Disposal group held for sale 759,670 - -
Total equity and liabilities 505,096,963 452,904,110 379,833,854
Net asset value per share (cents) 220,8 183,5 -*
Tangible net asset value per share (cents per share) 218,6 183,5 -*
Shares in issue at year end 44 699 113 31 500 000 -*
* The Company operated as a private unlisted company at this date and per share information had not
been previously published. The Company listed on 14 December 2012.
Condensed consolidated statement of changes in equity
Attributable Non-
Available for Common Retained to equity controlling
Share capital sale reserve reserve earnings holders interest Total equity
R’ R’ R’ R’ R’ R’ R’
Restated
Group balances at
30 November 2010 1,500 - - 32,647,575 32,649,075 7,889,990 40,539,065
Change in - - (6,941,028) (958,516) (7,899,544) (7,889,990) (15,789,534)
ownership interest
Total comprehensive
- - - 16,188,556 16,188,556 16,188,556
income -
Total changes - - (6,941,028) 15,230,040 8,289,012 (7,889,990) 399,022
Balances at 30
November 2011 1,500 - (6,941,028) 47,877,615 40,938,087 - 40,938,087
Share issue 4,277,776 - - - 4,277,776 - 4,277,776
Total comprehensive
- 798,813 - 11,779,540 12,578,353 12,578,353
income -
Total changes 4,277,776 - - 11,779,540 16,856,129 - 16,856,129
Balances at 30
November 2012 4,279,276 798,813 (6,941,028) 59,657,155 57,794,216 - 57,794,216
Share issue 29,307,959 - - - 29,307,959 - 29,307,959
Share issue expense (1,644,748) - - - (1,644,748) - (1,644,748)
Total comprehensive
- - - 13,251,593 13,251,593 13,251,593
Income -
Total changes 27,663,211 - - 13,251,593 40,914,804 - 40,914,804
Balances at 30
November 2013 31,942,487 798,813 (6,941,028) 72,908,748 98,709,020 - 98,709,020
Condensed consolidated statement of cash flows
Restated
Group Group
2013 2012
R’ R’
Cash flows from operating activities
Cash generated from operations 92,365,331 64,921,415
Interest income 7,217 92,678
Finance costs (24,407,843) (21,542,699)
Taxation paid (407,165) (405,400)
Net cash from operating activities 67,557,540 43,065,994
Cash flows from investing activities
Cash flow to maintain activities
Property, plant and equipment additions (11,066,500) (7,887,080)
Property, plant and equipment disposals 35,874,322 52,464,964
Intangible assets additions (1,000,000) –
Net cash from investing activities 23,807,822 44,577,884
Cash flows used in financing activities
Proceeds from the issue of share capital 27,663,211 –
Repayments of other financial liabilities (97,054,065) (89,554,670)
Repayments to shareholder (4,799,048) (4,155,689)
Repayment to group company – (92,476)
Net cash used in financing activities (74,189,902) (93,802,835)
Total cash movement for the year 17,175,460 (6,158,957)
Cash at the beginning of the year 1,234,804 7,393,761
Cash at the end of the year 18,410,264 1,234,804
1. BASIS OF PREPARATION
The Board of Directors is pleased to present the company?s reviewed results for the year ended 30
November 2013 in accordance with IAS 34: Interim Financial Reporting. 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 same accounting policies and methods of computation have been followed as compared to the
prior year. The results have been reviewed by Horwath Leveton Boner and the unqualified and
unmodified review report is available for inspection at the Company?s registered office.
The financial results have been prepared by the financial director, Mr W Basson CA (SA).
2. PROPERTY, PLANT AND EQUIPMENT
Accumulated
Cost depreciation Carrying value
GROUP – 2013 R’ R’ R’
Forklifts 578,388,343 (169,769,798) 408,618,545
Furniture and Fittings 69,188 (55,789) 13,399
Office equipment 12,000 (4,168) 7,832
IT equipment 310,472 (244,939) 65,533
Computer software 125,207 (120,957) 4,250
Tank containers 1,051,750 (689,241) 362,509
579,956,960 (170,844,892) 409,072,068
Accumulated
Cost depreciation Carrying value
GROUP – 2012 R’ R’ R’
Forklifts 515,466,557 (137,644,787) 377,821,770
Furniture and Fittings 296,733 (272,406) 24,327
Office equipment 139,922 (130,084) 9,838
IT equipment 839,127 (746,694) 92,433
Computer software 199,978 (193,626) 6,352
Tank containers 1,051,750 (636,655) 415,095
517,994,067 (139,624,252) 378,369,815
Accumulated
Cost depreciation Carrying value
GROUP – 2011 R’ R’ R’
Forklifts 426,588,452 (108,681,517) 317,906,935
Furniture and fixtures 293,514 (260,855) 32,659
Office equipment 139,922 (128,083) 11,839
IT equipment 768,254 (677,197) 91,057
Computer Software 199,978 (184,572) 15,406
Tank containers 1,051,750 (584,068) 467,682
429,041,870 (110,516,292) 318,525,578
Carrying amounts of Property, plant and equipment can be reconciled as follows:
Carrying Carrying
value value
opening closing
balance Additions Impairment Disposals Depreciation balance
GROUP – 2013 R’ R’ R’ R’ R’ R’
Forklifts 377,821,770 120,912,182 (3,878,960) (35,874,322) (50,362,125) 408,618,545
Furniture and
Fittings 24,327 – – – (10,928) 13,399
Office equipment 9,838 – – – (2,006) 7,832
IT equipment 92,433 32,156 – – (59,056) 65,533
Computer
software 6,352 5,113 – – (7,215) 4,250
Tank containers 415,095 – – – (52,586) 362,509
378,369,815 120,949,451 (3,878,960) (35,874,322) (50,493,916) 409,072,068
Carrying Carrying
value Depreciation value
opening and closing
balance Additions Impairment Disposals impairment balance
GROUP – 2012 R’ R’ R’ R’ R’ R’
Forklifts 317,906,935 224,610,564 – (118,609,971) (46,085,758) 377,821,770
Furniture and
Fittings 32,659 3,219 – – (11,551) 24,327
Office equipment 11,839 – – – (2,001) 9,838
IT equipment 91,057 70,656 – – (69,280) 92,433
Computer
software 15,406 – – – (9,054) 6,352
Tank containers 467,682 – – – (52,587) 415,095
318,525,578 224,684,439 – (118,609,971) (46,230,231) 378,369,815
Carrying Additions
value opening through Disposals from Carrying
balance business business value closing
GROUP – Additions combinations Disposals combinations Depreciation balance
2011 R’ R’ R’ R’ R’ R’ R’
Forklifts 299,275,444 96,761,975 275,092,966 (39,233,462) (275,092,966) (38,897,022) 317,906,935
Furniture and
fixtures 44,112 - 33,556 - (33,556) (11,453) 32,659
Office
equipment 318 12,000 119,170 - (119,170) (479) 11,839
IT equipment 136,471 22,475 - - - (67,889) 91,057
Computer
software 25,751 7,500 - - - (17,845) 15,406
Tank
containers 520,270 - - - - (52,588) 467,682
300,002,366 96,803,950 275,245,692 (39,233,462) (275,245,692) (39,047,276) 318,525,578
3. SHARE CAPITAL
Group Group Group
2013 2012 2011
R’ R’ R’
Authorised
1,000,000,000 Ordinary Shares
with no par value - - -
2011: 10,000 Ordinary Shares of
R1 each - - 10,000
2011: 1,000 Ordinary Type A
Shares of R1 each - - 1,000
955,300,887 (2012: 968,500,000) (2011: 9,000 and 500 Type A) unissued ordinary shares are under the
control of the shareholders in terms of a shareholder?s agreement.
Group Group Group
2013 2012 2011
R’ R’ R’
Issued
Opening balance 4,279,276 1,500 1,500
Issued 27,663,211 4,277,776 -
Closing balance 31,942,487 4,279,276 1,500
Issued share capital consists of 44,699,113 (2012: 31,500,000) Ordinary share with on par value, and
9,000 Ordinary shares of R1 each and 500 Ordinary Type A Shares of R1 each in 2011.
4. PRIOR PERIOD ERRORS
On the updated IFRS advice that the directors have received, it was determined that a lease back
arrangement did not qualify for revenue recognition in terms of IAS 17.
The correct disclosure is as follows:
Effect on
Group 2012
R’
Effect on the Statement of Comprehensive income:
(Decrease) in revenue (61,654,848)
Decrease in cost of sales 61,654,848
-
It came to the directors? attention that the capitalisation of a shareholder loan prior to listing had
only been capitalised to stated capital subsequent to year end. However, the weighted average
shares in issue, earnings per share and headline earnings per share had been correctly calculated
and presented.
The correct accounting treatment is as follows:
Effect on
Group 2012
R’
Effect on the Statement of Financial Position:
(Decrease) in Loan from holding company (4,278,276)
Increase in stated share capital 4,278,276
-
It came to the directors? attention that the available for sale reserve was disclosed as part of
retained earnings in the 2012 financial year. The available for sale reserve needs to be disclosed
as a separate line item in the Statement of Changes in Equity.
The correct disclosure is as follows:
Effect on
Group 2012
R’
Effect on the Statement of Changes in Equity :
(Decrease) in retained earnings (798,813)
Increase in available for sale reserve 798,813
-
On the advice that the directors have received, it was determined that cash flows from investing
activities and cash flows from financing activities needs to be accounted in terms of IAS 7 where
only the physical cash movement needs to be reflected in the statement of Cash flows.
The correct disclosure is as follows:
Effect on
Group 2012
R’
Effect on the Statement of Cash flows :
Increase in cash flows for investing activities 148,499,965
(Decrease) in cash flows from financing activities (148,499,965)
-
The directors have established that that the increase in the prior year tax rate on the CGT
provision raised in Global on the investment in Linde had not been eliminated on consolidation.
The correct disclosure is as follows:
Effect on
Group 2012
R’
Effect on the Statement of Financial position:
(Decrease) in deferred tax liability (1,826,986)
Effect on the Statement of Comprehensive income:
Decrease in Current tax charge 1,826,986
-
Based on updated IFRS advice that the directors have received, it was determined that goodwill
needs to be accounted for as Common Control in terms of IFRS3.
The correct disclosure is as follows:
Effect on
Group 2011
R’
Effect on the Statement of Financial Position:
(Decrease) in Intangible Assets (6,941,028)
(Decrease) in (6,941,028)
-
It came to the directors? attention that there was a misallocation between the deferred tax liability
account and other long term financial liabilities account.
The correct disclosure is as follows:
Effect on
Group 2011
R’
Effect on the Statement of Financial position:
Increase in deferred tax liability 1,265,001
(Decrease) in other long term financial liabilities (1,265,001)
-
The above mentioned changes had the following combined effect on the weighted average number of
shares (WANS), earnings per share (EPS) and headline earnings per share (HEPS).
WANS EPS HEPS
Group 2012 Cents Cents
Previously reported 2,503,660 429,4 327,5
Increase (decrease) - 41,1 73,0
2,503,660 470,5 400,5
The above mentioned changes had the following combined effect on the shares in issue at 30 November
2012, net asset value per share (NAVPS) and the tangible net asset value per share (TNAVPS).
Shares in NAVPS TNAVPS
Group 2012 issue Cents Cents
Previously reported 1,500 2,341,8 2 064,6
Increase (decrease) 31,498,500 (2 158,3) (1 881,1)
31,500,000 183,5 183,5
The above mentioned had the following combined effect on equity and profit for the year.
Equity Profit for the
year
Group 2012 R’ R’
Previously reported 58,630,482 9,952,555
Increase (decrease) (836,266) 1,826,985
57,794,216 11,779,540
5. Earnings per share (cents)
Reconciliation between earnings per share and headline earnings per share:
Continuing Discontinuing
operations operations Total
GROUP – 2013 R’ R’ R’
Earnings 13,251,593 – 13,251,593
Impairment 2,792,851 – 2,792,851
Headline earnings 16,044,444 – 16,044,444
Continuing Discontinuing
operations operations Total
GROUP – 2012 R’ R’ R’
Earnings 12,086,667 (307,126) 11,779,541
Capital gains on sale of investments (1,751,097) – (1,751,097)
Headline earnings 10,335,570 (307,126) 10,028,444
6. INDUSTRY AND BUSINESS OVERVIEW
Global listed on the Alternative Exchange ("AltX") of the Johannesburg Stock Exchange (“JSE”) on
14 December 2012.
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, as well as asset 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 specializes in identifying undervalued opportunities and
invests in strong and sustainable annuity businesses.
Global is the holding company of LFS Assets Proprietary Limited (“LFS”), a very successful asset
finance company, specialising in the financing of Linde forklift trucks.
LFS was formed to satisfy very specific needs which existed within Linde Material Handling
Proprietary Limited (“LMH”), a South African registered company with ownership being held by the
ultimate manufacturer of Linde forklift trucks, a company operating out of Germany and owned by
Goldman Sachs and Kohlberg Kravis Roberts & Company, both investment houses of American
origin.
The current consortium of funders to the LFS book includes Rand Merchant Bank, Standard Bank,
Nedbank, Imperial Bank and Mercantile Bank.
7. FINANCIAL RESULTS
Global reports that the performance of the Group was marginally below what was expected and as
published in its profit estimate. Shareholders are reminded that the Group removed some of the
non-core operations and small properties in anticipation of the listing, which impacts on the
comparison of the results to the prior year.
Revenue is down from 30 November 2012 due to a decrease in the sale of second hand forklift
trucks which are included in other revenue income of R 55,2 million in 2012 to R 19 million in 2013.
However, revenue from the rental business has increased by 18,1% to R 114,3 million during the
year under review. Cost of sales has similarly decreased due decrease in the sale of second hand
forklift trucks.
The company restated its Statement of Financial Position, Statement of Comprehensive Income
and Statement of Changes in Equity as a result of various prior period errors. Please refer to the
prior period errors and the effect this has on the Statement of Financial Position, Statement of
Comprehensive Income and Statement of Changes in Equity above.
Operating expenses were substantially higher during the year ended 30 November 2013 due to the
inclusion of a charge for the impairment of assets of R 3,8 million as well as an increase in repair
and maintenance costs of R 4,5 million.
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.
Performance Highlights for 2013
Global has delivered satisfactory results, considering the difficult environment and its revised
business model as a listed entity. Key achievements include:
- Growth in profit for the year ended 30 November 2013 of 12,5%;
- Total Assets growing by 11,5% to R505,1 million, with Total Equity growing by 76.4% to
R98,7 million;
- Share price increasing to R2.20 at 30 November 2013, resulting in an annualized pre-tax
return of approximately 10% to shareholders;
- Issuing 13,199,113 million of new ordinary shares, raising R29,307,959 million in equity;
- Securing the rights to 51% of Earthwize Energy Holdings (Pty) Ltd subsequent to year
end by way of an initial shareholding of 5% and an option to acquire a further 46%;
- Establishing the Energy Efficiency Company (Pty) Ltd shortly after year end.
Performance of Global Business
Global achieved a profit for 2013 of R13.2 million, in spite of increased costs due to the
listing.
Corporate services revenues continued to grow and amounted to R4.2 million for the
financial year. Project Finance related revenues came in at R3.3 million, which remained
well below expectations, due to the difficult funding environment.
LFS Assets was the only operating subsidiary of Global during the 2013 financial year.
The company is wholly owned by the Global holding company GAM Industrial. The Net
Income for LFS Assets during 2013 represents the bulk of the Global net result.
The results of LFS Assets were negatively impacted by rising refurbishment costs on
second-hand trucks, allocated to be sold, whilst prices realised on the sales of second-
hand trucks also remained below expectations.
A concerted effort will be made to improve the results for the second-hand book in 2014
and various strategic initiatives are underway together with the equipment provider Linde
Materials Handling, to ensure a much improved outcome for 2014.
Property, plant and equipment on the Statement of Financial Position increased by 8%,
primarily as a result of additional forklift trucks being acquired for the rental book during
the year.
Share capital has increased due to the issue of shares. This led to an increase in cash
and cash equivalents.
Global has assembled a strong team of professionals and managers during 2013, and
the strategic focus has been set for 2014 on executing projects and business initiatives
developed in 2013, delivering positive cash flows and returns.
8. SEGMENTAL REPORTING
Segmental information has been reported by the Group in the following segments, namely forklift
truck rentals and fork truck maintenance transactions.
2013 2013 2012 2012
% R’ % R’
Revenue
Rental income 65 114,279,756 52 96,758,834
Maintenance income 25 43,912,101 18 33,817,702
Other revenue income 10 19,025,217 30 55,189,000
100 177,217,074 100 185,765,536
Rental income Maintenance Other income Consolidation
income
R’ R’ R’ R’
GROUP 2013
Sales 114,279,756 43,912,101 19,025,217 177,217,074
Cost of sales (50,362,127) (43,904,072) (18,231,412) (112,497,611)
Gross profit 63,917,629 8,029 793,805 64,719,463
Operating expense (41,009,381) - (5,647,326) (46,656,707)
Taxation (6,643,278) (2,248) 1,834,363 (4,811,163)
Profit after tax 16,264,970 5,781 (3,019,158) 13,251,593
Depreciation and
impairment (52,921,792) - (1,451,084) (54,372,876)
Additional
information
Segment assets 427,955,736 - 77,141,227 505,096,963
Deferred tax assets 18,430,420 - - 18,430,420
Deferred tax liability (43,044,686) - 7,800,701) (50,845,387)
Segment liability (395,046,861) - (11,341,082) (406,387,943)
Rental income Maintenance Other income Consolidation
income
R’ R’ R’ R’
GROUP 2012
Sales 96,758,834 33,817,702 55,189,000 185,765,536
Cost of sales (46,085,758) (33,048,607) (56,955,123) (136,089,488)
Segment result 50,673,076 769,095 (1,766,123) 49,676,048
Operating expense (30,219,419) - (2,841,955) (33,061,374)
Taxation (4,108,413) (215,346) (511,375) (4,835,134)
Profit after tax 16,345,244 553,749 (5,119,453) 11,779,540
Depreciation and
amortisation (45,543,506) - (1,770,797) (47,314,303)
Additional information
Segment assets 379,833,854 - 14,410,021 452,904,110
Deferred tax assets 18,384,153 - - 18,384,153
Deferred tax liability (36,473,336) - (10,281,682) (46,755,018)
Segment liability (381,417,682) - (13,692,212) (395,109,894)
Project management, corporate services and any other income is below the quantitative threshold
set by IFRS for reporting.
9. FORECASTS AS PER PROSPECTUS
Actual Forecast Variance Variance
R 000’s R 000’s R 000’s % Increase/
(Decrease)
Revenue 177,217 174,162 3,055 1.7%
Cost of sales (112,498) (111,370)* (1,128) 1.0%
Gross profit 64,719 62,792 1,927 3.1%
Other income 638 - 638 -%
Operating expenses (22,894) (16,177)* (6,717) (41.5%)
Profit before finance 42,463 46,615 (4,152) (8.9%)
charges
Net financing costs (24,400) (25,548) (1,148) (4.4%)
Profit for the period 18,063 21,066 (3,003) (14.2%)
Taxation (4,811) (6,163) 1,352 (21.9%)
Profit after taxation 13,251 14,903 (1,652) (11.1%)
*Cost of Sales restated by depreciation of R 55,735 mil. Depreciation previously included in Operating expenses as per forecast per
the prospectus.
The key reasons for the variance relative to the profit forecast are the following:
- Revenue is higher than expected partly due to rentals being charged for the increased utilisation
of fork lift trucks. The increased utilization of forklift trucks also led to a higher than expected
maintenance charge.
- The increase in operating expenses is partly due to a higher than expected repair and
maintenance cost. The value impaired also added to the increase in Operating expenses.
- The decrease in taxation was a direct result of the lower than expected profit for the period.
10. DIRECTORS
The current board is constituted as follows:
Name Date of appointment Position/title
Niels Penzhorn 1 December 2009 Chief Executive Officer
Werner Petrus Basson 14 November 2012 Chief Financial Officer
Marinus Cornelis Christoffel 13 February 2002 Chief Operating Officer
(“Koos”) van Ettinger
Alan Jerome Naidoo 1 November 2012 Non-Executive Director
Andrew Alexander Maren 1 November 2012 Non-Executive Director
Gabriel Thona Magomola 1 November 2012 Independent Non-Executive Director
Gordon Kenneth Cunliffe 1 November 2012 Independent Non-Executive Director
and Chairman
11. SHARE CAPITAL AND ISSUE/ REPURCHASE OF SHARES
The Company has raised R29 307 959 in cash through the issue of 3 500 000 and 9 699 113
ordinary shares for cash at 200 cents and 230 cents per ordinary share respectively at the listing
and subsequent to the listing respectively. The issue of 9 699 113 shares is under the general
authority to issue shares cash.
An application for the listing of these shares on the Johannesburg Stock Exchange (“JSE”) was
made and the shares were listed on or about 18 November 2013. The company is still in the
process of placing an additional 5 300 887 shares at 230 cents per share over a period of time.
During the year under review, the Company did not repurchase any shares.
12. DIVIDEND
The Company has not declared a dividend for the year ended 30 November 2013 (2012: RNil).
13. 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.
14. CONTINGENT LIABILITIES
At the balance sheet date the Group does not have any contingent liabilities (2012: RNil).
15. SUBSEQUENT EVENTS
Subsequent to year end, the Company intends investing into the following strategic entities.
Energy Efficiency Company Proprietary Limited (“EEC”)
Global, via its 100% owned, newly formed subsidiary GAM Business Solutions Proprietary Limited,
will subscribe for 51% of the new issued share capital in EEC for R10 000 000 and a Mauritian
investor will subscribe for the remaining 49% shareholding for R10 000 000. This will lead to the
establishment of a company focused on providing funding to corporates for the installation of
energy efficiency equipment in order to replace the old electrical infrastructure to achieve between
a 35% to 50% reduction in electricity consumption. It is intended that the funding capacity of the
EEC will grow to around R250 million over time.
Earthwize Energy Holdings Proprietary Limited (“Earthwize”)
Global intends injecting R20 million of capital to be raised into a newly formed 100% subsidiary,
namely GAM New Energy Proprietary Limited (“GAM New Energy”). GAM New Energy will be the
holding company of companies with a strategic focus on investments into waste to energy projects,
including plastic to oil and rubber to oil pyrolysis projects.
GAM New Energy, has acquired 5% of the existing issued share capital in Earthwize for R560 000
and has secured an option with Earthwize to acquire an additional 20% in Earthwize, by investing
up to R20 million in the first EWEH plastic to oil pyrolysis plant. A further 26% will be acquired from
existing Earthwize shareholders on terms to be agreed, tied to the performance of Earthwize over a
period of five years.
This acquisition and funding will only be implemented once full funding for the underlying project
and plant has been secured, which is expected to be in the next financial year commencing 1
December 2013.
Earthwize has developed pyrolysis technology for the purpose of converting waste plastic into
heavy fuel oil and production of oil through a pilot plant has been successful. The technology is
ready for commercialization with construction to commence on the first plastic pyrolysis plant
planned for the first half of 2014.
16. FUTURE PROSPECTS
Global will continue to build on its formidable platform of assets and skills, linking financial
management prowess and structuring expertise within Global and its partner companies, to
become the investment vehicle and financing partner of choice for investors, business owners and
clients. Being listed on the JSE will provide Global with an enhanced standing and visibility in the
market, which will allow the company to access an increased set of funding options.
The following strategic objectives will be pursued in 2014:
- Building Global and its underlying entities into highly profitable companies;
- Focussing on cash generative businesses;
- Executing earmarked acquisitions and projects; and
- Diversifying geographically through a potential secondary listing on an offshore stock
exchange.
By order of the Board
Chairman Chief Executive Officer
Johannesburg
14 March 2014
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
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