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Audited Condensed Results for the Year Ended 30 November 2017
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 2017
The Board of Directors of Global (“Board”) is pleased to present the audited condensed results of Global and
its subsidiaries for the year ended 30 November 2017.
Condensed consolidated statement of comprehensive income
Audited Audited
2017 2016
Notes R R
Revenue 197 886 506 197 100 747
Cost of sales 141 224 250 145 794 963
Gross profit 56 662 256 51 305 784
Other income 2 345 500 1 186 166
Gain due to change in control 5 3 709 422 -
Operating expenses (25 639 247) (22 768 657)
Income from operations 37 077 931 29 723 293
Investment income 1 574 791 307 559
Finance costs (30 582 104) (31 164 902)
Profit/(loss) before taxation 8 070 618 (1 134 050)
Taxation (1 639 814) 304 888
Profit/(loss) and total comprehensive profit/(loss) for
the year 6 430 804 (829 162)
Profit/(loss) and total comprehensive profit/(loss)
attributable to:
Equity holders of the parent 6 967 961 (619 911)
Non-controlling interest (537 157) (209 251)
Basic and diluted earnings/(loss) per share (cents) 6 10.9 (1.2)
Condensed consolidated statement of financial position
Audited Audited
2017 2016
Notes R R
ASSETS
Non-current assets 476 925 632 496 113 916
Property, plant and equipment 2 413 642 734 440 275 371
Goodwill 37 959 099 37 959 099
Intangible asset 824 164 1 075 074
Investment in associate and joint venture 204 961 49
Loans and advances to customers 21 157 886 13 681 578
Deferred tax asset 3 136 788 3 122 745
Current assets 103 846 824 56 381 072
Trade and other receivables 41 852 483 43 839 909
Other financial assets 21 506 484 1 322 983
Cash and cash equivalents 39 427 737 8 220 776
Inventories 1 060 120 2 997 404
Total assets 580 772 456 552 494 988
EQUITY AND LIABILITIES
Equity
Share capital 3 96 999 130 57 207 811
Retained earnings 97 510 649 89 688 390
Total equity attributable to equity holders of the parent 194 509 779 146 896 201
Non-controlling interest 4 34 022 502 1 461 073
Total equity 228 532 281 148 357 274
Liabilities
Non-current liabilities 236 723 520 248 725 075
Loans payable 192 623 561 204 683 798
Contingent consideration payable 1 321 023 2 551 152
Deferred tax liability 42 778 936 41 490 125
Current liabilities 115 516 655 155 412 639
Trade and other payables 20 269 270 30 672 467
Loans payable 90 303 061 109 458 309
Other financial liabilities 3 154 763 15 235 663
Taxation 1 789 561 46 200
Total equity and liabilities 580 772 456 552 494 988
Net asset value per share (cents) 264.7 271.2
Shares in issue at year end 73 481 246 54 157 575
Condensed consolidated statement of changes in equity
Shareholders’
Interest
Common before non Non-
Share Control Retained controlling Controlling Total
capital reserve earnings interest interest equity
R R R R R R
Balances at 30
November 2015 34 795 085 (6 941 028) 90 998 501 118 852 558 - 118 852 558
Shares issued
related to business
combination 23 236 966 - - 23 236 966 - 23 236 966
Acquisition of non-
controlling interest - - - - 1 900 000 1 900 000
Additional non-
controlling interest in
subsidiaries - - 229 676 229 676 (229 676) -
Surplus on partial
disposal of
subsidiary - - 6 021 152 6 021 152 - 6 021 152
Share issue
expenses (824 240) - - (824 240) - (824 240)
Total
comprehensive
income - - (619 911) (619 911) (209 251) (829 162)
Total changes 22 412 726 - 5 630 917 28 043 643 1 461 073 29 504 716
Balances at 30
November 2016 57 207 811 (6 941 028) 96 629 418 146 896 201 1 461 073 148 357 274
Shares issued 40 000 000 - - 40 000 000 - 40 000 000
Share based
payments - - 1 040 552 1 040 552 - 1 040 552
Share issue
expenses (208 681) - - (208 681) - (208 681)
Previously
recognized losses
transferred to non-
controlling interest
due to change in
control - - (186 254) (186 254) 186 254 -
Non-controlling
interest arising from
a change in
ownership interests
that does not result
in a loss of control - - - - 32 912 332 32 912 332
Transfer of common
control reserve to
retained earnings* - 6 941 028 (6 941 028) - - -
Total
comprehensive
income - - 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
November 2017 96 999 130 - 97 510 649 194 509 779 34 022 502 228 532 281
Notes 3 4
*As the common control reserve arose in the 2012 financial year, it is considered a historical event which no longer
bears relevance and no longer requires a separate reserve allocation. The reserve has hence been transferred to
retained earnings in the current year.
Condensed consolidated statement of cash flows
Audited Audited
2017 2016
R R
Cash flows from operating activities
Cash generated from operations 117 456 669 136 015 908
Interest income 1 574 791 307 559
Finance costs (29 982 122) (30 780 737)
Taxation 1 470 715 385 366
Net cash from operating activities 90 520 053 105 928 096
Cash flows from investing activities
Property, plant and equipment additions (8 652 055) (14 338 973)
Cash inflow on acquisition of subsidiary - 12 809
Loans advanced to related parties (5 578 545) (1 032 099)
Net cash from investing activities (14 230 600) (15 358 263)
Cash flows used in financing activities
Proceeds from share issue by parent 28 854 171 -
Payment of share issue expenses (208 681) (824 240)
Proceeds from shares issued to non-controlling shareholders
of subsidiary 20 500 000 -
Proceeds from disposal of partial interest in subsidiary 12 702 000 -
Repayment of loans payable (104 561 927) (102 946 193)
Proceeds of other financial liabilities - 9 748 159
Loans repaid to related parties (2 368 055) -
Net cash used in financing activities (45 082 492) (94 022 274)
Total cash movement for the year 31 206 961 (3 452 441)
Cash at the beginning of the year 8 220 776 11 673 217
Cash at the end of the year 39 427 737 8 220 776
1. BASIS OF PREPARATION
The Board of Directors is pleased to present the Group’s audited condensed results for the year
ended 30 November 2017, which have been prepared in accordance with the recognition and
measurement principles of International Financial Reporting Standards (“IFRS”), including 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 Financial Reporting Standards Council; the
Companies Act of South Africa, as amended; and the JSE Limited (“JSE”) Listing 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 Horwath Leveton Boner. 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 W Basson CA (SA).
These audited condensed consolidated financial statements have been derived from the Global
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 Carrying
Cost depreciation 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
Total 684 933 948 (271 291 214) 413 642 734
Accumulated Carrying
Cost depreciation value
2016 R R R
Forklifts 673 797 487 (248 768 448) 425 029 039
Furniture and Fittings 97 019 (94 800) 2 219
IT equipment 367 472 (338 641) 28 831
Motor vehicles 158 500 (42 267) 116 233
Plant under construction 15 099 049 - 15 099 049
Total 689 519 527 (249 244 156) 440 275 371
Carrying amounts of Property, plant and equipment can be reconciled as follows:
Carrying value Transfers to Carrying
opening trading value closing
balance Additions Impairment operations** Disposals* 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 4 170 312
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
Total 440 275 371 81 241 065 (382 607) (31 780 646) (9 640 789) (66 069 660) 413 642 734
Carrying value Transfers to Carrying
opening Transfers to trading value closing
balance Additions Impairment inventories operations** Depreciation balance
2016 R R R R R R R
Forklifts 435 178 382 87 403 891 (1 161 384) (2 593 022) (27 978 201) (65 820 627) 425 029 039
Furniture and Fittings 7 503 - - - - (5 284) 2 219
IT equipment 13 301 31 394 - - - (15 864) 28 831
Motor vehicles 147 933 - - - - (31 700) 116 233
Plant under
construction 4 623 259 10 475 790 - - - - 15 099 049
Total 439 970 378 97 911 075 (1 161 384) (2 593 022) (27 978 201) (65 873 475) 440 275 371
*Disposals of plant under construction relates to the de recognition of Enviroprotek (Pty) Ltd as a subsidiary, due
to the loss of control.
**Transfers to trading operations refer to the actual sales of new and used forklift trucks during the period
under review.
3. 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 926 518 754 (2016: 945 842 425) unissued ordinary shares in terms of the memorandum of
incorporation.
2017 2016
Number of Number of 2017 2016
shares shares R R
Issued:
Opening balance 54 157 575 46 046 266 57 207 811 34 795 085
Issued 19 323 671 8 111 309 39 791 319 22 412 726
Closing balance 73 481 246 54 157 575 96 999 130 57 207 811
Issued share capital consists of 73 481 246 (2016: 54 157 575) ordinary shares at no par value.
4. SUBSIDIARIES AND NON-CONTROLLING INTEREST
Details of the Group’s subsidiaries at the end of the reporting period are as follows:
Name % Holding Activity
LFS Assets (Pty) Ltd 100 Direct Asset finance
LFS Assets Namibia (Pty) Ltd 100 Indirect Asset finance
GAM New Energy (Pty) Ltd 100 Direct Renewable energy
Total Rubber Recycle (Pty) Ltd 90.50 Direct Rubber to oil pyrolysis
Earthwize Energy Holdings (Pty) Ltd 95.25 Direct Plastic to oil pyrolysis
Plastics Green Energy (Pty) Ltd 26.67 Indirect Plastic to oil pyrolysis
Details of a non-wholly owned subsidiary that have a material non-controlling interest
The table below shows details of a non-wholly owned subsidiary of the Group that has a material non-
controlling interest:
Percentage held by Profit/(loss) Accumulated
non- controlling allocated to non- non-controlling
interest controlling interests interests
2017 2016 2017 2016 2017 2016
Name of business R R R R
Plastics Green Energy
(Pty) Ltd 73.33% -% (773 077) - 32 139 255 -
Individually immaterial
subsidiaries with non
controlling interests 235 920 (209 251) 1 883 247 1 461 073
(537 157) (209 251) 34 022 502 1 461 073
Summarised financial information in respect of the Group’s subsidiary that has a material non-
controlling interest is set out below. The summarised financial information below represents amounts
before intragroup eliminations.
2017 2016
Plastics Green Energy (Pty) Ltd R R
Summarised Statement of Financial Position:
Current Assets 32 817 858 234 372
Non-current assets 12 001 298 808 573
Current liabilities (652 840) (2 202 911)
Total equity 44 166 316 (1 159 966)
Equity attributable to owners of the company 12 027 061 (1 159 966)
Non-controlling interests 32 139 255 -
Summarised Statement of Comprehensive Income:
Expenses (2 686 200) (1 540 584)
Investment income 1 181 255 -
Taxation 431 226 380 617
Loss and total comprehensive loss for the year (1 073 719) (1 159 967)
Loss and total comprehensive loss attributable to:
Equity holders of the parent 300 642 (1 159 967)
Non-controlling interest 773 077 -
Summarised Statement of cash flows:
Net cash outflow from operating activities (3 360 973) (1 752 156)
Net cash (outflow)/inflow from investing activities (12 941 611) 1 752 156
Net cash inflow from financing activities 46 400 000 -
Net cash inflow 30 097 416 -
The Group owns 26.67% equity shares of Plastics Green Energy (Pty) Ltd (“PGE”). The directors of
the Group concluded that the Group has control in terms of IFRS 10: Consolidated Financial
Statements over PGE and that PGE is consolidated in these financial statements due to the following
reasons:
- the Group’s directors are the only appointees to the PGE board of directors at financial year end;
- PGE is dependent on GAM for providing key management services and vital expertise and the
PGE operations are dependent on GAM’s key management personnel;
- GAM is the only appointee of key management personnel and the PGE business is run by GAM
appointed personnel;
- the Group is responsible to secure PGE’s suppliers and customers;
- the Group’s exposure to variable returns disproportionately exceeds the exposure of the other
investors due to a significant management fee being charged.
Non-controlling interest
Change in the Group’s ownership interest in a subsidiary
In May 2017, the Group together with Futuregrowth Asset Management (Pty) Ltd (“Futuregrowth”)
subscribed to 55% and 45% of the total issued shares in Plastics Green Energy (Pty) Ltd (“PGE”) for a
consideration of R26.5 million and R20.5 million respectively, reducing the Groups’ interest to 55%.
The total proceeds from the subscription of R47 million were received in cash. An amount of
R19 708 015 (being the proportionate share of the carrying amount of the net assets of PGE,
attributable to Futuregrowth) has been transferred to non-controlling interest.
In November 2017, African Rainbow Capital Ltd (“ARC”) bought 219 shares in Plastics Green
Energy (Pty) Ltd (“PGE”) from Earthwize Energy Holdings (Pty) Ltd for R12 702 000 which amount
was received in cash. Prior to this agreement GAM effectively owned 52.39% (95.25% x 55%) in PGE.
The purchase of shares by ARC resulted in GAM effectively owning 26.67% (95.25% x 28%) in PGE.
An amount of R12 431 240 (being the proportionate share of the carrying value of the net assets of
PGE, attributable to ARC) has been transferred to non-controlling interest.
2017 2016
Non-controlling interest R R
Balance at beginning of year 1 461 073 -
Acquisition of non-controlling interest - 1 900 000
Non-controlling interest arising from a change in ownership
interests that does not result in a loss of control 32 912 332 -
Additional non-controlling interest in subsidiaries - (229 676)
De-recognition due to change in control 186 254 -
Share of profit for the year (537 157) (209 251)
Balance at end of year 34 022 502 1 461 073
5 GAIN DUE TO CHANGE IN CONTROL
2017
Change in control R
Enviroprotek 3 709 422
Gain on change in control 3 709 422
African Rainbow Capital Ltd (“ARC”) subscribed for 9 614 shares in Enviroprotek (Pty) Limited (“EPT”)
for R9 614 in May 2017. Prior to the ARC subscription, GAM effectively owned 82.12% (90.50% x
90.74%) in EPT. Due to GAM having control, EPT was consolidated. The subscription by ARC
resulted in GAM effectively owning 44.35% (90.50% x 49%) in EPT. GAM lost control of EPT through
certain reserved matters requiring approval of both GAM and ARC and as a result of this the 44.35%
is now equity accounted for as an investment in a joint venture. The change in control resulted in the
following gain:
2017
Change in control R
Proceeds on disposal -
Fair value of remaining interest 204 912
Non-controlling interest (186 254)
Net liabilities disposed (3 728 080)
Gain on change in control 3 709 422
6. BASIC AND DILUTED EARNINGS/(LOSS) PER SHARE (CENTS)
Basic and headline earnings
2017 2016
R R
Basic earnings/(loss) 6 967 961 (619 911)
Adjusted for:
Impairment of property plant and equipment 382 607 1 161 384
Gain on change in control (3 709 422) -
Non-controlling interest 352 395 -
Tax effect (107 130) (325 188)
Headline earnings 3 886 411 216 285
2017 2016
Weighted average number of ordinary shares 64 216 472 53 647 848
Basic earnings/(loss) per share (cents) 10.9 (1.2)
Headline earnings per share (cents) 6.1 0.4
There are no instruments in issue that would cause a dilutive effect.
7. BUSINESS OVERVIEW
Global has made good progress during the year, establishing its renewable energy businesses which
focus on waste-to-energy solutions. A rising oil price has significantly added to projected future cash
flows.
Enviroprotek (Pty) Ltd has successfully commissioned its second commercial waste tyre recycling
reactor, which enables the company to convert approx. 300 tons of waste rubber into industrial fuel oil,
carbon black and steel on a monthly basis. Cash flows are expected to turn positive during the second
quarter of 2018 once the construction of a new carbon beneficiation plant has been completed. The
company is supplied with waste tyres by the Waste Bureau.
Plastics Green Energy (Pty) Ltd (“PGE”) has finalised the construction of a plastics recycling pilot plant
at its Springs site and has commenced with the construction of its first commercial plant. Making use
of its own proprietary technology, PGE will recover the latent energy inherent in waste plastic by
converting it into liquid fuel aimed at the industrial fuel oil market.
Heliosek (Pty) Ltd has completed the design for its initial pilot plant to be established during 2018. 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 been encouraging, notwithstanding the difficult economic
environment currently persisting in South Africa. Furthermore, Linde Material Handling South Africa
(Pty) Ltd (“LMH") has 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 last 12 years. LFS is
currently running down the Linde book of existing leasing transactions, and has commenced to employ
its current funding base, systems and expertise to fund other logistics related assets and equipment
from other manufacturers on a non-exclusive basis. LFS will also investigate the opportunity of funding
renewable energy assets, such as generators that will use the diesel equivalent fuel produced by its
fellow subsidiaries. Significant growth opportunities exist in this area. Margins are also expected to be
more attractive than in the forklift truck financing operations.
8. FINANCIAL RESULTS
Points of Interest:
African Rainbow Capital Ltd (“ARC”) transaction
The previously announced subscriptions to the following shares were concluded during the period
under review:
- The subscription by ARC to 19 323 671 Global shares (constituting approximately 26.3% of
Global’s shares following such subscription) for a consideration of R40 million.
- The subscription by ARC to shares in Enviroprotek (Pty) Ltd (“EPT”) is such that ARC holds 46%
of the shares in EPT.
Subscription of shares in Plastics Green Energy (Pty) Ltd (“PGE”)
PGE is the company that will house the Group’s first commercial plastics-to-fuel conversion plant.
As previously announced, a subscription agreement providing for the subscription to shares in PGE by
Futuregrowth Asset Management (Pty) Ltd (“Futuregrowth”) and Earthwize Energy Holdings (Pty) Ltd
(“EWEH”), a 95.25% subsidiary within the Global Group of Companies, was concluded.
The Group and Futuregrowth subscribed to R26.5 million and R20.5 million respectively, in equity
funding to PGE. This resulted in the Group owning a 55% share, and Futuregrowth owning a 45%
share in PGE.
Sale of shares in PGE
EWEH, a subsidiary of Global, entered into a sale of shares agreement with The ARC Fund, an en
commandite partnership, associated with African Rainbow Capital.
This agreement relates to the disposal of 27% of the shares in PGE by Global to ARC for a cash
consideration of R12.7 million.
The Group now owns 26.67% of the equity shares in PGE. The directors of the Group have concluded
that the Group has control over PGE and PGE is consolidated in these financial statements.
Points of Interest as a result of the above mentioned transactions:
- Global recorded a profit after taxation of R6.4 million for the 12 months ended 30 November 2017.
A significant portion of this profit relates to the Group’s recognition of the gain realised on the
change in control.
- The increase in loans receivable was due to the recognition of the loan to EPT. ARC’s
subscription to shares in Global’s then subsidiary EPT, resulted in a change in control. EPT is
accordingly now being equity accounted instead of being consolidated, which resulted in the de-
recognition of EPT’s assets, liabilities and retained losses as part of the Group results.
- The net asset value per share has decreased by 2.4% from 271.2 cents per share to 264.7 cents
per share following the ARC subscription to Global shares at a price what was lower than the net
asset value per share.
- Other financial liabilities decreased in line with the capitalisation of ARC’s loan as part of their
subscription to Global shares.
Other points of Interest:
- The gross profit margin increased compared to the prior period due to the profitable margins
achieved on the sale of forklift trucks.
- Loans and advances to customers increased significantly due to the increase in new forklift truck
sales.
- The recoverability of trade and other debtors improved compared to the prior period ended
30 November 2016.
It should be noted that the current portion of other financial liabilities reflected on the statement of
financial position represents a 12-month accrual for finance associated with the Group’s rental book.
Trade and Other Receivables only reflect the current receivables arising from the matching rental
contracts. The net current liability position of the Group is accordingly considered sound as current
liabilities will be settled by ongoing monthly rental billings.
9. SEGMENTAL REPORTING
Segmental information has been reported by the Group in the following segments, namely rentals and
maintenance, sale of forklifts, renewable energy and other income.
Rentals and Sale of Renewable Inter-
maintenance forklifts energy Other group Total
2017 R R R R R R
Revenue 181 819 162 32 930 636 - 11 957 474 (28 820 766) 197 886 506
Cost of sales (130 253 298) (31 809 933) - - 20 838 981 (141 224 250)
Gross profit/(loss) 51 565 864 1 120 703 - 11 957 474 (7 981 785) 56 662 256
Interest income - - 1 408 547 1 860 609 (1 694 365) 1 574 791
Interest expense (29 839 103) - (1 686 837) (750 529) 1 694 365 (30 582 104)
Operating expense
other income (16 191 683) - (7 037 794) (4 336 633) 7 981 785 (19 584 325)
Taxation (1 124 635) (227 708) 1 486 505 (1 773 976) - (1 639 814)
Profit/(loss) after
tax 4 410 443 892 995 (5 829 579) 6 956 945 - 6 430 804
Depreciation and
impairment (66 281 172) - - (171 095) - (66 452 267)
Additional
information
Additions to
property plant and
equipment 71 994 300 - 8 130 906 1 115 859 - 81 241 065
Investment in
associate and joint
venture - - 204 961 - - 204 961
Share of loss of
equity method
investees - - (1 141 175) - - (1 141 175)
Total segment
assets 456 020 000 - 65 959 377 163 108 496 (104 315 417) 580 772 456
Segment assets 456 020 000 - 62 822 589 163 108 496 (104 315 417) 577 635 668
Deferred tax asset - - 3 136 788 - - 3 136 788
Total segment
liabilities (363 609 035) - (41 977 238) (11 339 866) 64 685 964 (352 240 175)
Segment liability (311 908 919) - (41 977 238) (11 339 866) 55 764 784 (309 461 239)
Deferred tax
liability (51 700 116) - - - 8 921 180 (42 778 936)
Rentals
and Sale of Renewable
maintenance forklifts energy Other Intergroup Total
2016 R R R R R R
Revenue 197 419 648 25 704 224 - 3 473 996 (29 497 121) 197 100 747
Cost of sales (142 560 798) (27 978 201) - - 24 744 036 (145 794 963)
Gross profit/(loss) 54 858 850 (2 273 977) - 3 473 996 (4 753 085) 51 305 784
Interest income - - 65 013 265 403 (22 857) 307 559
Interest expense (30 803 594) - - (384 165) 22 857 (31 164 902)
Operating expense
and other income (17 235 515) - (6 215 439) (2 884 622) 4 753 085 (21 582 491)
Taxation (1 833 479) 611 355 1 653 535 (126 523) - 304 888
Profit/(loss) after
tax 4 986 262 (1 662 622) (4 496 891) 344 089 - (829 162)
Depreciation and
impairment (66 982 011) - - (52 848) - (67 034 859)
Additional
information
Additions to
property plant and
equipment 87 403 891 - 10 475 790 31 394 - 97 911 075
Investment in
associate - - 49 - - 49
Share of loss of
equity method
investee - - (229 932) - - (229 932)
Total segment
assets 485 254 857 - 14 389 123 135 599 194 (82 748 186) 552 494 988
Segment assets 485 254 857 - 11 266 378 135 599 194 (82 748 186) 549 372 243
Deferred tax asset - - 3 122 745 - - 3 122 745
Total segment
liabilities (400 145 424) - (21 176 786) (26 054 603) 43 239 099 (404 137 714)
Segment liability (349 355 559) - (21 176 786) (26 054 603) 33 939 359 (362 647 589)
Deferred tax
liability (50 789 865) - - - 9 299 740 (41 490 125)
10. RELATED PARTY TRANSACTIONS
The Group’s consolidated financial statements for the year ended 30 November 2016 contains details
of the Group’s related party relationships and should be read in conjunction with this report.
The related party transactions during the period ended 30 November 2017, with the exception of
Enviroprotek (Pty) Ltd (“EPT”) being derecognised as a subsidiary due to the change in control and
African Rainbow Capital Ltd (“ARC”) purchasing shares in Plastics Green Energy (Pty) Ltd
(“PGE”) from Earthwize Energy Holdings (Pty) Ltd, do not materially deviate from the transactions as
reflected in the financial statements for the year ended 30 November 2016.
The de-recognition of EPT as a subsidiary resulted in the recognition of a loan to EPT of R10.8 million.
The loan is unsecured and is payable on demand. Related party transactions are at arm’s length.
The proceeds of R12.7 million received from ARC for the sale of the PGE shares.
11. 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 (“Koos”) van Ettinger Chief Operating Officer
MJ Reyneke Non-Executive Director
NB Matyolo Non-Executive Director
AJ Naidoo Independent Non-Executive Director
GT Magomola Independent Non-Executive Director
GK Cunliffe Independent Non-Executive Director and Chairman
Subsequent to the financial year end, the Board has appointed Mr CJP Cilliers, a representative of
one of the large shareholders in Global, as a non-executive director.
12. SHARE CAPITAL / REPURCHASE OF SHARES
19 323 671 Global shares (constituting approximately 26.3% of Global’s shares following such
subscription) were issued for a consideration of R40 million. Global did not repurchase any shares
during the reporting period.
13. DIVIDEND
The Company did not declare a dividend for the year ended 30 November 2017 (2016: R Nil).
14. LITIGATION
As at year end, there was no litigation pending against the Company or its Subsidiaries, which is
expected to have a material impact on the results of the Group.
15. CONTINGENT LIABILITIES
At the reporting date the Group does not have any contingent liabilities (2016: R Nil).
16. COMMITMENT
The Group had a commitment of R7 244 000 towards the purchase of Jabumart (Pty) Ltd subject to
certain conditions president at 30 November 2017. A deposit of R5 659 002 was paid towards this
commitment. Refer to note 17.
The Group had no other major commitments at 30 November 2017 that requires disclosure.
17. SUBSEQUENT EVENTS
The Group acquired all the shares in issue of Jabumart (Pty) Ltd for a consideration of R7 244 000.
The transaction had certain conditions precedent of which the final condition, being the transfer of a
property into Jabumart (Pty) Ltd was met on 11 December 2017, subsequent to the Group’s financial
year end. Jabumart (Pty) Ltd does not constitute a business combination as there were no set of
activities in the company up to the date of transfer. The property will be used by the Group to further
develop its plastic to oil and rubber to oil pyrolysis operations. An estimate of the financial effect
cannot be made yet.
There are no other major events subsequent to 30 November 2017 that require disclosure.
18. FUTURE PROSPECTS
The Global Group will continue to establish its renewable energy businesses. 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 on an international basis.
This prospects statement has not been review or audited by the Company’s auditors.
By order of the Board
GK Cunliffe N Penzhorn
Chairman Chief Executive Officer
Johannesburg
20 March 2018
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^; CJP Cilliers^
* - independent non-executive, ^ - non-executive
Designated Advisor Transfer Office
Arbor Capital Sponsors Proprietary Limited Link Market Services Proprietary Limited
Date: 20/03/2018 05:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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