CSM Group Preliminary Full Year Announcement FY 2019

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CSM Group Limited
P O Box 105745
Auckland


CSM Group Limited (NZX: CSM)

Preliminary unaudited results announcement for the 12 months ended 30 June 2019

Commentary
AUCKLAND, New Zealand, 12 September 2019 – The Board of CSM Group Limited (NZX:CSM) is
pleased to announce the preliminary unaudited full year results of the company for the 12 months
ended 30 June 2019.

Results for Announcement to the Market
Results for announcement to the market
Name of issuer CSM Group Limited (CSM)
Reporting Period 12 months to 30 June 2019
Previous Reporting Period 12 months to 30 June 2018
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$- -%
Total Revenue $27 0.7%
Net profit/(loss) from
continuing operations
$(627) (20.5)%
Total net profit/(loss) $(1,259) 27%
Interim/Final Dividend
Amount per Quoted Equity
Security
The company does not propose to pay a dividend at this time.
Imputed amount per Quoted
Equity Security
Not applicable
Record Date Not applicable
Dividend Payment Date Not applicable

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Current period Prior comparable period
Net tangible assets per Quoted
Equity Security
$0.0050 $0.0064
A brief explanation of any of
the figures above necessary to
enable the figures to be
understood
See below
Authority for this announcement
Name of person authorised to
make this announcement
Roger Gower
Contact person for this
announcement
Roger Gower
Contact phone number 027 591 4112
Contact email address roger@gower.ac
Date of release through MAP 12 September 2019

Unaudited financial statements accompany this announcement.

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Preliminary unaudited announcement for the year ended 30 June 2019

Following the decision to cease operations at its wholly owned subsidiary China Scrap Metal Resources
Pty Ltd (“CSM Pty”), CSM Group Limited (the “Company”) has now completed the winding down of
that business and its subsidiary company (CSM Pty) was de-registered on 6 November 2018.
The financial results reflect the decision to minimise costs, wind down and exit the Australian
operation.
As cash has been realised from the sale of inventory, property, plant and equipment, and local
liabilities satisfied, surplus funds have been transferred to the parent company, CSM Group. All funds
held in Australia are now held in CSM Group.
Transfer from foreign currency translation reserve on wind up of subsidiary
Included in the net loss attributable to shareholders is a classification adjustment of $697,000.
Accounting standards require that on the wind up of a foreign subsidiary, the cumulative amount of
exchange differences recognised in equity (in the foreign currency translation reserve) be reclassified
from equity to profit or loss. This adjustment has no impact on net tangible asset backing or cash
reserves.
Accounting Policies
Apart from the change in presentation currency noted below, the accounting policies have been
applied on a basis consistent with those used in the audited financial statements of the year ended
30 June 2108.
Change in Presentation Currency
The Company advised in its 2018 Annual Report that the functional currency changed from USD to
NZD with effect from 1st April 2018.
Now that the Australian subsidiary, CSM Pty, has been fully disposed and the corporate entity de-
registered the Directors advise that the Company has adopted New Zealand Dollars as its presentation
currency.
The choice of presentation currency is an accounting policy and any change is applied retrospectively.
The effect is the financial statements are treated as if the new presentation currency has always been
the presentation currency, with the comparatives restated in the new presentation currency.
IAS 1: Presentation of Financial Statements requires the financial statements to include a Statement of
Financial Position as at the beginning of the preceding period when an accounting policy has been
applied retrospectively, as has been the case with this change in accounting policy. The Statement of
Financial Position therefore includes the restated comparatives as at 30 June 2017.
The effect of foreign currency movements that impact on the financial statements as a result of this
change in presentation currency, is shown in Other Comprehensive Income (Loss) and in the
Statement of Movements in Equity as exchange differences in change of presentation currency.
Future Options
The Company is now a listed shell, with considerable cash resources and no debt. The Company has no
term liabilities, and will have limited ongoing liabilities, most of which are associated with maintaining
a listing on the NZX market.

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The options the directors are pursuing for CSM Group include:
• finding a business operation to invest in;
• undertaking a reverse listing of a business seeking a stock exchange listing.
At this time the Company has no particular announcement to make regarding progress with those
options suffice to say they are being actively investigated.
Result
The financial result for the Group for the year ended 30 June 2019 is a loss of NZD $1,258,550.
Earnings per Share and Net Tangible Asset per security
The earnings per share are shown below the Statement of Profit & Loss and Other Comprehensive
Income below. The net tangible asset backing per security is shown below the Statement of Position
below.
Subsidiary
As noted above, CSM Group’s 100% owned subsidiary, CSM Pty, has now been deregistered. The
financial impact of CSM Pty on the results for the year is shown in the segment reporting below.
Audit
The financial statements shown below have not yet been audited by the Company’s auditor.

Future Events

Event Date
Annual report due 30 October 2019

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Statement of Profit & Loss and Other Comprehensive Income
CSM Group Limited
For the year ended 30 June 2019



2019 2018
(re sta te d)
NZ$000NZ$000
Revenue--
Administrative expenses(564)(601)
Operating loss(564)(601)
Finance income2727
Exchange loss(91)(214)
Loss before income tax(627)(788)
Income tax expense--
Loss from continuing operations
(627)(788)
Discontinued operations
Gain (loss) from discontinued operations (net of tax)66(202)
Transfer from foreign currency translation reserve on wind up of subsidiary(697)-
Net loss attributable to shareholders(1,259)(990)
Other comprehensive income
Items that may be reclassified subsequently to profit of loss
Exchange differences on translation of overseas subsidiary-6
Exchange difference on change in presentation currency-235
Other comprehensive income for the period, net of tax-240
Total comprehensive loss for the year attributable to shareholders(1,259)(750)
Total comprehensive loss for the year attributable to shareholders
Continuing operations(627)(788)
Discontinued operations(631)39
(1,259)(750)
Earnings (loss) per share from continuing operations:
- basic and diluted loss per share (cents)(0.151)(0.190)
Earnings (loss) per share from continuing and discontinued operations:
- basic and diluted loss per share (cents)(0.304)(0.181)

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Statement of Changes in Equity
CSM Group Limited
For the year ended 30 June 2019




Share ForeignAccumulatedTotal
capitalcurrencyl o sse sequity
tra nsla tion
reserve
NZ$000NZ$000NZ$000NZ$000
Balance at 1 July 2017 (restated)44,165(647)(40,125)3,393
Loss attributable to shareholders--(990)(990)
Exchange differences on translating overseas subsidiary-6-6
Exchange differences on change in presentation currency754(56)(463)235
Other comprehensive income----
Total comprehensive loss for the period754(50)(1,453)(749)
Balance at 30 June 2018 (restated)44,919(697)(41,578)2,644
Balance at 1 July 2018 (restated)44,919(697)(41,578)2,644
Loss attributable to shareholders-697(1,259)(561)
Exchange differences on translating overseas subsidiary----
Exchange differences on change in presentation currency----
Other comprehensive income----
Total comprehensive loss for the period-697(1,259)(561)
Balance at 30 June 201944,919-(42,837)2,083

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Statement of Financial Position
CSM Group Limited
As at 30 June 2019



2019 20182017
(re sta te d)(re sta te d)
NZ$000NZ$000NZ$000
ASSETS
Current assets
Cash and cash equivalents1,8742,4522,676
Trade and other receivables43120132
Inventory
--311
Taxation receivable238246238
Total current assets2,1552,8183,357
Non-current assets
Property, plant and equipment
--475
Total non-current assets
--475
Total assets
2,1552,8183,833
LIABILITIES
Current liabilities
Trade payables and other liabilities73174439
Total current liabilities
73174439
Total liabilities73174439
Net assets
2,0832,6443,393
EQUITY
Share capital44,91944,91944,165
Foreign currency translation reserve-(697)(647)
Accumulated losses(42,837)(41,578)(40,125)
Total equity
2,0832,6443,393
Net tangible assets per share (cents per share):0.50 0.64 0.82

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Statement of Cash Flows
CSM Group Limited
For the year ended 30 June 2019



2019 2018
(re sta te d)
NZ$000NZ$000
Cash flows from operating activities
Receipts from customers
-579
interest received
2729
Payments to suppliers and employees
(551)(1,393)
Income tax refunded (paid)
36(7)
Net cash outflows for operating activities(487)(792)
Cash flows from investing activities
Disposal of property, plan and equipment
-509
Net cash inflows from investing activities-509
Net increase/(decrease) in cash and cash equivalents
(487)(283)
Cash and cash equivalents at the beginning of the period2,4522,676
Effect of exchange rate changes(91)58
Cash and cash equivalents at the end of the period
1,8742,452
Reconciliation of Loss after Taxation with Cash Flow from Operating Activities
2019 2018
(re sta te d)
NZ$000NZ$000
Net loss after taxation(1,259)(990)
Adjustments for:
Income tax expense (benefit) in profit or loss--
Depreciation expense and impairment loss-(24)
Effect of foreign exchange rates91175
Transfer from foreign currency translation reserve on wind up of 697-
Other non-cash adjustments--
Movements in working capital
Decrease / (increase) in trade and other receivables4922
Decrease / (increase) in inventories-319
(Decrease) / increase in trade and other payables(101)(288)
Income taxes received (paid)36(7)
Net cash outflows from operating activities(487)(792)

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Reporting of Segments
The Group has identified its operating segments based on the internal reports reviewed and used by
the Board of Directors in assessing performance and in determining the allocation of resources.
The Group was previously organised into the following main operating segments:
• China Scrap Metals Resources Pty Limited (CSM Pty) includes the business operation in Australia
involved in the processing of scrap metal for export sale to Chinese markets.
• Holding company New Zealand includes holding company costs and head office charges.
Income has been allocated based on the country where the income is generated. Expenses are
allocated based on the country where the expense is incurred.
Total assets and liabilities are allocated based on where those assets and liabilities are located.
Following the deregistration of its subsidiary, CSM Pty, the Company will only report as a single
segment. All assets and liabilities at balance date where held by the New Zealand company.


HoldingCSM PtyTotalHoldingCSM PtyTotal
CompanyCompany
New ZealandAustraliaNew ZealandAustralia
ContinuingDiscontinuedContinuingDiscontinued
NZ$'000NZ$'000NZ$'000NZ$'000NZ$'000NZ$'000
(re sta te d)(re sta te d)(re sta te d)
Total inter-segment revenue------
Total external revenue------
Tot al E B ITDA(564)-(564)(601)-601
Finance income27-2727-27
Impairment recovered/(Impairment)------
-6666-(202)(202)
-(697)(697)---
Exchange gain/(loss)(91)-(91)(214)-(214)
Net loss before taxation(627)(631)(1,259)(788)(202)(990)
Income tax expense------
Net loss for the year(627)(631)(1,259)(788)(202)(990)
HoldingCSM LtdTotalHoldingCSM LtdTotal
Company NZAustralianCompany NZAustralian
(re sta te d)(re sta te d)(re sta te d)
NZ$'000NZ$'000NZ$'000NZ$'000NZ$'000NZ$'000
Segment assets2,155-2,1552,798 19 2,818
Segment liabilities73-73119 54 174
2019 2018
Gain (loss) from discontinued operations
(net of tax)
Transfer from foreign currency translation
reserve on wind up of subsidiary
2019 2018