2019 Half Year Result and Interim Report

SOUTHERN CHARTER
FINANCIAL GROUP LIMITED


FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2018

UNAUDITED INTERIM
FINANCIAL STATEMENTS

Page 1 Interim Report 30 September 2018
Dear Shareholders

The Directors of Southern Charter Financial Group (“the Company”) are pleased to report its financial results
for the six months ended 30 September 2018.

Financial Results
Southern Charter Financial Group reports an unaudited net loss attributable to shareholders of $48,660 for
the half year ended 30 September 2018. This compares with a net profit attributable to shareholders of
$183,341 for the same period last year. The prior period value is influenced by a gain on disposal of subsidiary
of $499,542 for which the correct accounting treatment was subsequently determined to be recognized in
equity rather than in profit and loss. Adjusting for the change means that the loss from continuing
operations of $48,660 would compare to a loss from continuing operations of $157,447 for the same period
last year.
The net loss figure for the interim period ended 30 September 2018 consists mainly of interest earned on
cash deposits with the bank and expenses incurred on compliance and maintenance of the Company.

Outlook
A recent change in the majority shareholder was approved at the special meeting on 7 December 2018. The
Company will continue to look for appropriate acquisition targets with the support of the new majority
shareholder. The Company will seek approval from all shareholders, as required, to complete any major
transaction.

On behalf of the Directors of Southern Charter Financial Group the Company extends its thanks to the
shareholders for their support of the company.

Joseph van Wijk
Director

Page 2 Interim Report 30 September 2018

CONTENTS

GROUP INTERIM STATEMENT OF COMPREHENSIVE INCOME _______________________________ 3
GROUP STATEMENT OF FINANCIAL POSITION ___________________________________________ 4
GROUP INTERIM STATEMENT OF CHANGES IN EQUITY ____________________________________ 5
GROUP INTERIM STATEMENT OF CASH FLOWS __________________________________________ 6
NOTES TO THE FINANCIAL STATEMENTS _______________________________________________ 7
BUSINESS DIRECTORY _____________________________________________________________ 9

Southern Charter Financial Group Limited
Page 3 Interim Report 30 September 2018
GROUP INTERIM STATEMENT OF COMPREHENSIVE INCOME




This statement should be read in conjunction with the accompanying notes and the annual financial
statements for the year ended 31 March 2018.
For the period ended 30 September 2018
UnauditedUnauditedAudited
Six monthsSix monthsYear
Sep-18Sep-17Mar-18
$$$
Continuing operations
Interest Income32,056 - 20,874
Other income- 15,000 15,000
Administrative expenses(80,716) (121,909) (251,161)
(48,660) (106,909) (215,287)
Finance costs- (50,538) -
Gain on disposal of subsidiary- 499,542 -
Loss before income tax(48,660) 342,095 (215,287)
Income tax expense- - -
Loss for the year from continuing operations(48,660) 342,095 (215,287)

Loss for the period from discontinued operations- (158,754) (201,792)
Net loss for the period attributable to shareholders(48,660) 183,341 (417,079)
Other comprehensive income- - -
(48,660) 183,341 (417,079)
Earnings per share:centscentscents
Basic and diluted earnings/(loss) per share(0.01) 0.14 (0.13)
Basic and diluted earnings/(loss) per share(0.01) 0.27 (0.07)
Loss before interest, tax, depreciation, amortisation and other items
Total comprehensive loss for the year, net of tax, attributable to
shareholders

Southern Charter Financial Group Limited
Page 4 Interim Report 30 September 2018
GROUP STATEMENT OF FINANCIAL POSITION



13 December 2017



Director: Joseph Van Wijk Director: John Cilliers

This statement should be read in conjunction with the accompanying notes and the annual financial
statements for the year ended 31 March 2018.
As at 30 September 2018
UnauditedAudited
Six monthsYear
Sep-18Mar-18
$$
Assets
Current assets
Cash and cash equivalents2,358,036 2,492,095
Trade and other receivables94,019 46,431
Total assets2,452,055 2,538,526
Equity and liabilities
Current liabilities
Trade and other payables39,128 76,939
Total liabilities39,128 76,939
Equity
Issued capital5,672,856 5,672,856
Accumulated loss(3,259,929) (3,211,269)
Total equity2,412,927 2,461,587
Total equity and liabilities2,452,055 2,538,526
centscents
Net Tangible Asset per Share0.47 0.48

Southern Charter Financial Group Limited
Page 5 Interim Report 30 September 2018
GROUP INTERIM STATEMENT OF CHANGES IN EQUITY



This statement should be read in conjunction with the accompanying notes and the annual financial
statements for the year ended 31 March 2018.


For the period ended 30 September 2018
Issued
capital
Accumulated
Loss
Total equity
$$$
As at 1 April 20172,826,634 (3,593,732) (767,098)
Loss for the period- 183,341 183,341
Total comprehensive loss- 183,341 183,341
Issue of share capital3,284,250 - 3,284,250
(300,000) 300,000 -
Transaction costs(138,028) - (138,028)
Unaudited balance for the period ended 30 September 20175,672,856 (3,110,391) 2,562,465
As at 1 October 20175,672,856 (3,110,391) 2,562,465
Loss for the period- (600,420) (600,420)
Total comprehensive loss- (600,420) (600,420)
- 499,542 499,542
At 31 March 20185,672,856 (3,211,269) 2,461,587
As at 1 April 20185,672,856 (3,211,269) 2,461,587
Loss for the period- (48,660) (48,660)
Total comprehensive loss- (48,660) (48,660)
Unaudited balance for the period ended 30 September 20185,672,856 (3,259,929) 2,412,927
Reverse consolidation equity of Lateral Profiles on sale
Capital contibution resulting from the distribution to
shareholders of subsidiary containing a net liability.

Southern Charter Financial Group Limited
Page 6 Interim Report 30 September 2018
GROUP INTERIM STATEMENT OF CASH FLOWS



This statement should be read in conjunction with the accompanying notes and the annual financial
statements for the year ended 31 March 2018.
For the period ended 30 September 2018
UnauditedUnauditedAudited
Six monthsSix monthsYear
Sep-18Sep-17Mar-18
$$$
Operating activities
Receipts from customers- 277,681 218,262
Received from GTNZ for deferral fee- - 130,000
32,056 - 12,639
Payments to suppliers(166,115) (378,091) (851,310)
Payments to employees- (105,180) (118,425)
Interest paid(81,045) (30,507)
Income tax paid/(received)- - 169
Net cash flows from operating activities(134,059) (286,635) (639,172)
Investing activities
Net cash flows from investing activities- - -
Financing activities
Proceeds from issue of share capital- 3,146,222 3,201,975
Distribution to shareholders- (400,000) (190,141)
Net cash flows from financing activities- 2,746,222 3,011,834
Net increase in cash and cash equivalents(134,059) 2,459,587 2,372,662
Cash and cash equivalents at beginning of year2,492,095 119,432 119,433
Cash and cash equivalents at end of year2,358,036 2,579,019 2,492,095
Interest received

Page 7 Interim Report 30 September 2018
NOTES TO THE FINANCIAL STATEMENTS
1. STATEMENT OF ACCOUNTING POLICIES
Reporting entity
These consolidated financial statements and notes represent those of Southern Charter Financial Group
Limited and, until disposal on 31 August 2017, its subsidiary Lateral Profiles Limited (the “Group”).
References to “SCFG” are used to refer to the Group and Southern Charter Financial Group Limited (the
“Company”).
Golden Tower NZ Limited is the ultimate legal parent company of the Group.
Southern Charter Financial Group Limited is a limited liability company incorporated and domiciled in New
Zealand. It is registered under the Companies Act 1993. SCFG is listed on the NZX Alternative Market
(“NZAX”). SCFG is a FMC reporting entity under Part 7 of the Financial Markets Conduct Act 2013 and its
financial statements have been prepared in accordance with the Companies Act 1993, The Financial
Reporting Act 2013 and the Financial Markets Conduct Act 2013.
The registered office and principal place of business are disclosed in the directory to the annual report.
The principal activity of the Group until 31 August was as a developer and distributer of premium digital
products and services that enable commercialisation of the mobile and fixed web using various payment
methods.
On 31 August 2017, SCFG completed the planned disposal of the subsidiary Lateral Profiles Limited and SCFG
has subsequently become a “listed shell” to enable future acquisition of a suitable operating business.
Statement of compliance
The accounting principles adopted are those recognised as appropriate for the measurement and reporting
of financial performance and financial position on the historical cost basis. The accrual basis of accounting
has been used unless otherwise stated and the financial statements have been prepared on a going concern
basis.
The information is presented in New Zealand dollars which is the Company’s functional currency and the
Group’s presentation currency and are rounded to the nearest dollar.
2. SEGMENT INFORMATION
There have been no material changes in the nature of operating segments since 31 March 2018
3. FINANCIAL RISK MANAGEMENT
There have been no material changes in the management of risk or in any risk management policies in
the current period.
4. PROPERTY, PLANT AND EQUIPMENT
There have been no changes in the estimated useful life of key items of plant and equipment.

Page 8 Interim Report 30 September 2018
5. INTANGIBLE ASSETS
There have been no changes in the estimated recoverable amount or estimated useful life of intangibles
6. RELATED PARTY TRANSACTIONS
Related party transactions for the period consisted of director fees of $10,000 and executive
management fees of $25,000 paid to Joseph van Wijk. Professional services fees of $5,283 were paid to
John Cilliers, a director of the company, in relation to accounting services and preparation of the 2018
annual report. Both values are included in the administrative expense as reported for the period.
7. SIGNIFICANT EVENTS AFTER BALANCE DATE
The Company’s major shareholder, Golden Tower NZ Limited, entered into a conditional agreement to
sell its shares (being 86% of the ordinary shares on issue) to Chang Ku EE in consideration for $2.95
million. The transaction was approved by shareholders at a special meeting of shareholders held 7
December 2018. There were no other significant events subsequent to 30 September 2018.
8. AUDIT
These interim financial statements are not required to be audited.

Page 9 Interim Report 30 September 2018

BUSINESS DIRECTORY

Company number:
4844319

Directors:
Karl Chan, Chairman
Joseph van Wijk
Chong Hoi Sze
John Cilliers

Registered office:
Level 2 Tower Building,
50 Customhouse Quay,
Wellington, 6011

Share Registrar
Link Market Services Limited
Level 7, Zurich House
21 Queen Street
Auckland 1010

Bankers:
Westpac Bank Limited

Solicitors:
Duncan Cotterill
Wellington

Auditors:
BDO, Auckland
Auckland

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SOUTHERN CHARTER FINANCIAL GROUP LIMITED
1




18 December 2018


SNC – 2019 Interim Report

Southern Charter Financial Group Limited (NZAX: SNC) is pleased to release its Interim Report
for the six months ended 30 September 2018.

Please refer to the attached Interim report and announcement for the detailed result for the
period.


John Cilliers
Director
Southern Charter Financial Group
Email: john.cilliers@outlook.co.nz

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SOUTHERN CHARTER FINANCIAL GROUP LIMITED

1


18 December 2018

NZX Market Announcement

Half Year Results Announcement to the Market
Unaudited result for the six months ended 30 September 2018

Reporting Period

Previous Reporting Period
Six months to 30 September 2018
Six months to 30 September 2017



$ Amount
(NZD ‘000s)
Percentage
Change
Previous
Reporting
Period ($000’s)
Revenue from ordinary activities
0 0% 127
Profit/(Loss) from ordinary activities after
tax attributable to security holders
(49) -126.5% 183
Net loss attributable to security holders
(49) -126.5% 183

Net Tangible Assets per Share 2018

Net Tangible Assets per Share 2017
$0.005
$0.005

Interim/Final Dividend Amount per security Imputed amount per security
Interim No dividend declared N/A
Record Date

Dividend Payment Date
N/A
N/A

Comments


Accompanying this announcement are Southern Charter Financial
Group Limited’s unaudited financial statements for the
half year ended 30 September 2018. These financial statements and
the financial commentary set out in the announcement and interim
report provide additional information required in accordance with
NZAX Listing Rule 10.4.2 and Appendix 1