Burger Fuel Group Ltd Half Year Results – 30 September 2019

Results for announcement to the market
Name of issuer Burger Fuel Group Limited
Reporting Period 6 months to 30 September 2019
Previous Reporting Period 6 months to 30 September 2018
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$11,262 2.69%
Total Revenue $11,262 2.69%
Net profit/(loss) from continuing
operations
$548 (15.2%)
Total net profit/(loss) $548 (15.2%)
Interim Dividend
Amount per Quoted Equity Security Not Applicable
Imputed amount per Quoted Equity
Security
Not Applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable period
Net tangible assets per Quoted
Equity Security
$0.15 $0.13
A brief explanation of any of the
figures above necessary to enable
the figures to be understood
Group Operating Revenue increased by 2.69% on the same period last year to
$11.3M. This increase in revenue is mainly due to the opening of our company
owned Shake Out store at the Smales Farm complex in Takapuna, Auckland,
as well as the additional interest income booked for the non-occupied leases
as per the new IFRS16 lease accounting standard ($719K).
Authority for this announcement
Name of person authorised to make
this announcement
Mark Piet
Contact person for this
announcement
Mark Piet
Contact phone number 021 453 333
Contact email address Mark.Piet@Burgerfuel.com
Date of release through MAP 29/11/2019

---

Burger Fuel Group Limited
Consolidated Interim Financial Statements
For the period ended 30 September 2019

2
Burger Fuel Group Limited
Consolidated Interim Financial Statements
For the Period Ended 30 September 2019



Contents Page


Chairman and Chief Executive’s Review..............................3-5

Consolidated Statement of Comprehensive Income.................. 6

Consolidated Statement of Financial Position ........................7-8

Consolidated Statement of Changes in Equity...........................9

Consolidated Statement of Cash Flows ................................ 10

Notes to the Consolidated Financial Statements ...................11-15

3

Burger Fuel Group Limited
Chairman and Chief Executive’s Review
For the period ended 30 September 2019

Burger Fuel Group Ltd Half Year Results for the 6 months ended 30 September 2019

OVERVIEW

The Directors of Burger Fuel Group Limited (BFG) present the unaudited results for the 6 months to 30 September 2019.

Net Profit after tax for the period was $548,092 compared to $646,373 in the same period last year. This represents a decline
of (15.20%).

Group Operating Revenue increased by 2.69% on the same period last year to $11.3M. This increase in revenue is mainly
due to the opening of our company owned Shake Out store at the Smales Farm complex in Takapuna, Auckland, as well as
the additional interest income booked for the non-occupied leases as per the new IFRS 16 lease accounting standard
($719K).

The Group has no debt and as at 30 September 2019 had cash reserves of $5.2M.

On the 1
st
July 2019 Burger Fuel Worldwide Limited changed its name to Burger Fuel Group Limited to better reflect the
business focus and our recent transformation into a multi-brand business. At the same time, we also migrated to the NZX
main board from the NZAX.


BFG RESULTS (UNAUDITED) FOR THE PERIOD 1 APRIL TO 30 SEPTEMBER 2019

30 September 2019 30 September 2018
$000 $000

Operating Revenue * 11,262 10,967

Operating Expenses ** (10,584) (10,108)

Net Profit Before Tax 678 859
Net Profit After Tax 548 646

* Revenue includes; Operating revenue, interest income and interest income from non-occupied leases.
** Expenses include; Operating expenses, depreciation, amortisation, interest expense & interest from non-occupied leases.


GROUP PERFORMANCE

Total system sales were $50.2m, for the period representing a decrease of (1.85%) over the same period last year. The
decrease is mainly due to exiting Australia as well as reduced sales in the Middle East. Total system sales include the Winner
Winner store and the newly opened Shake Out locations.

Total store numbers decreased from 80 to 79 as at 30 September 2019. The additional system sales from the opening of the
new Shake Out stores helped offset the lost sales from exiting Australia in August 2018.

Group Net Profit Before Tax was down $181k (21%) on the same period last year. This was due to the additional costs
associated with establishing our new brands; Winner Winner and Shake Out, further costs associated with the strategic
options review undertaken by KPMG and from the accounting treatment of our occupied leases under the new accounting
standards, IFRS 16.

In April 2019 the BurgerFuel Group completed the staged buyback of its shares from its former Subway alliance partner,
Franchise Brands.

4


OPERATING RESULTS

BurgerFuel New Zealand

Comparable (Same Store Sales) BurgerFuel stores in NZ were down (1.4%) on the same period as last year. Total sales for
the period were flat. The metropolitan markets of Auckland & Christchurch (in particular) remain challenging. Other
regional areas have experienced firmer growth, as has Wellington. BurgerFuel Papamoa in the Bay of Plenty opened in
December 2018.

BurgerFuel New Zealand has maintained its position of not using aggregated delivery services such as Uber Eats. The
softening economy and disruptions from Uber Eats shed some light on our modest sales decline where we elected to
maintain franchisee margins (which have remained stable) rather than grow the top line sales which would be unlikely to add
additional profit for the franchisees, if third party delivery channels were used. It has become clear that many restaurants that
have engaged Uber Eats as a third-party sales and delivery channel have found the economics of this model to be largely
unsustainable. BurgerFuel in New Zealand is now on a recruitment campaign for franchisees in the regional centres that it
doesn’t currently serve and over time we see opportunity for modest additional BurgerFuel outlet expansion.

BurgerFuel Middle East (ME)

More recently the sales performance has been encouraging in the ME but the overall sales comparison for the first half of
each year shows a decrease of (13.0%) due to the closure of one store in Iraq and deteriorating conditions in that country.
The continued strategy of our UAE Licensee to service residential neighbourhoods instead of operating in high profile but
also high rent shopping malls, has also contributed to lower sales volumes in and around Dubai.

The Kingdom of Saudi Arabia continues to achieve satisfactory sales results and we are encouraged by the fact that the
Kingdom continues to adopt a more western lifestyle. Saudi Arabia is a large country with a young population and together
with the recent social reforms we expect it to be the country of focus for the future of BurgerFuel in the Middle East.

BurgerFuel USA

Chris Mason (BurgerFuel Licensee in the USA), continues to operate the single store in Broad Ripple, Indianapolis, Indiana.
We have not been advised of any proposed or further development plans for the USA. Chris Mason is due to complete the
payment for the USA transaction in March 2020.

International markets, MENA & the USA represent 20% of total BurgerFuel sales.

Winner Winner & Shake Out New Zealand

Winner Winner has undertaken many changes over the last 12 months and the comparable sales for the 6 months to 30
September 2019, year shows an increase of 16.5%

Shake Out now operates in 2 locations, neither of which were open for the comparable 6 months sales period to 30
September 2018.

The new brands within the BurgerFuel Group already represent 4% of the Group’s sales and we expect this percentage to
increase as we open more stores; both Shake Out and Winner Winner. The systemisation of both brands is complete, and we
are focused on the recruitment of quality franchisees who are seeking a well-known franchisor with a proven track record.


GROUP OUTLOOK

The Group’s healthy cash position will support its growth aspirations in all of its brands in New Zealand and also allow it to
operate strongly in the softening market conditions in the Middle East and New Zealand.

In summary, the earlier part of this year was spent reshaping the Group into a multi-brand and multi-national company.
BurgerFuel Group is now the licensor and franchisor of three high quality brands. In 2018 and 2019 the nature of the
franchising business model required preparatory work to ensure future growth was scalable and sustainable for the Group, its
franchisees and its suppliers. That work is now complete, and we are now firmly focused on the growth of new outlets.

BurgerFuel Group in conjunction with its advisors KPMG are still reviewing its options regarding a possible sale, merger,
joint venture, international partnership, domestic partnership or alternative process. The Board will keep the market updated
with any material developments should they occur throughout the on-going strategic review process.

5


BFG is in a sound position with its finances, talent, intellectual property and future opportunities well in place. We believe
the next 6 months will be an exciting time as we open a number of new restaurants across all 3 brands, within New Zealand.

We would like to thank all shareholders, staff, franchisees, suppliers and of course our valued customers for their support
and wish you all a safe and Merry Christmas and a prosperous New Year.

Best regards



Peter Brook

Josef Roberts
Chairman Group CEO

6
Burger Fuel Group Limited
Consolidated Statement of Comprehensive Income
For the period ended 30 September 2019




Unaudited Unaudited Audited

30 Sep
2019

30 Sep
2018
31 Mar
2019


6 months 6 months
Full Year


$’000

$’000
$’000






Revenue
10,505 10,920 20,900


Operating Expenses
(9,008) (9,728) (18,409)


Profit before interest, taxation, depreciation and
amortisation 1,497 1,192 2,491


Depreciation PPE
262 275 577
Depreciation on Leases
305 - -
Amortisation
72 96 175

639 371 752


Profit / (Loss) before Interest and Taxation
858 821 1,739


Interest Income
38 47 128
Interest Income leases non-occupied
719 - -
Interest Expense
- (9) (11)
Interest Expense leases occupied
(218) - -
Interest Expense leases non-occupied
(719) - -

(180) 38 117
Profit / (Loss) before Taxation
678 859 1,856


Income Tax Expense
130 213 619


Net Profit / (Loss) attributable to shareholders
548 646 1,237


Other comprehensive income:

Items that may be reclassified subsequently to profit
or loss:
Movement in Foreign Currency Translation Reserve
(113) (127) (53)


Total comprehensive income
435 519 1,184


Basic Net Earnings per Share (cents)
1.02 1.10 2.18
Diluted Earnings per Share (cents)
1.02 1.10 2.18

7
Burger Fuel Group Limited
Consolidated Statement of Financial Position
As at 30 September 2019


Unaudited Unaudited Audited


30 Sep
2019

30 Sep
2018
31 Mar
2019
6 months 6 months Full Year


$’000

$’000
$’000
Shareholders’ Equity

Contributed equity
13,818 14,519 14,087
Retained earnings
(1,993) (3,774) (2,541)
IPO capital costs
(223) (223) (223)
Other reserves
(437) (398) (324)

11,165 10,124 10,999
Current assets

Cash and cash equivalents
5,196 4,526 5,503
Trade and other receivables
3,277 3,458 3,021
Income tax receivable
- 201 -
Lease Receivable non-occupied
1,445 - -
Inventories
597 590 622
Loans
297 129 171

10,812 8,904 9,317
Non-current assets

Property, plant and equipment
2,426 2,600 2,539
Right of use asset - leases
6,906 - -
Lease receivable non-occupied
21,590 - -
Deferred tax asset
716 160 716
Intangible assets
2,484 2,508 2,545

34,122 5,268 5,800
Total assets
44,934 14,172 15,117

Current liabilities

Trade and other payables
1,212 3,654 1,498
Contract Liability
239 - 263
Lease Liability
420 - -
Lease Liability non-occupied
1,445 - -
Income tax payable
32 - 152
Provisions
424 357 415

3,772 4,011 2,328
Non-current liabilities

Contract Liability
1,761 - 1,752
Lease Liability
6,607 - -
Lease Liability non-occupied
21,590 - -
Provisions
39 37 38

29,997 37 1,790
Total liabilities
33,769 4,048 4,118

Net assets
11,165 10,124 10,999

8
Burger Fuel Group Limited
Consolidated Statement of Financial Position (continued)
As at 30 September 2019


Unaudited Unaudited Audited


30 Sep
2019

30 Sep
2018
31 Mar
2019





Net Tangible Assets per Share (cents) 14.8 12.7 14.0



For and on behalf of the board on 28
th
November 2019

Peter Brook Josef Roberts
Director Director

9
Burger Fuel Group Limited
Consolidated Statement of Changes in Equity
For the period ended 30 September 2019

September 2019



Share
capital
Foreign
currency
translation
reserve
IPO capital
costs
Retained
earnings Total equity


$’000 $’000 $’000 $’000 $’000
Balance as at 1 April 2019

14,087 (324) (223) (2,541) 10,999
Buy Back and Share cancellation

(269) - - - (269)
Movement in foreign currency translation
reserve recognised in other comprehensive
income

- (113) - - (113)
Net Profit for the period ended 30
September 2019

- - - 548 548
Total comprehensive income

- (113) - 548 435



Balance as at 30 September 2019

13,818 (437) (223) (1,993) 11,165

September 2018


Share
capital
Foreign
currency
translation
reserve
IPO capital
costs
Retained
earnings Total equity
$’000 $’000 $’000 $’000 $’000
Balance as at 1 April 2018

16,034 (271) (223) (2,337) 13,203
IFRS 15 Revenue adjustment to Retained
Earnings

- - - (2,083) (2,083)
Buy Back and Share cancellation

(1,515) - - - (1,515)
Movement in foreign currency translation
reserve recognised in other comprehensive
income

- (127) - - (127)
Net Profit for the period ended 30
September 2018

- - - 646 646
Total comprehensive income

- (127) - 646 519



Balance as at 30 September 2018

14,519 (398) (223) (3,774) 10,124


March 2019





Share
capital
Foreign
currency
translation
reserve
IPO capital
costs
Retained
earnings Total equity
$’000 $’000 $’000 $’000 $’000
Balance as at 31 March 2018

16,034 (271) (223) (2,337) 13,203
Impact of changes in accounting policies

- - - (1,441) (1,441)
Balance as at 1 April 2018

16,034 (271) (223) (3,778) 11,762
Buy Back and Share cancellation

(1,947) - - - (1,947)
Movement in foreign currency translation
reserve recognised in other comprehensive
income

- (53) - - (53)
Net loss for the year ended 31 March 2019

- - - 1,237 1,237
Total comprehensive income

- (53) - 1,237 1,184



Balance as at 31 March 2019

14,087 (324) (223) (2,541) 10,999

10
Burger Fuel Group Limited
Consolidated Statement of Cash Flows
For the period ended 30 September 2019

Unaudited Unaudited Audited


30 Sep
2019

30 Sep
2018
31 Mar
2019



6 months 6 months
12 months
$’000 $’000 $’000
Cash flows from operating activities
Cash was provided from:

Receipts from customers
10,178 10,385 20,849
Interest received
38 47 128
Goods and services tax received / (paid)
5 29 14

10,221 10,461 20,991
Cash was applied to:

Payments to suppliers & employees
(9,361) (9,300) (17,908)
Interest paid
- (9) (11)
Interest on leases (was rent pre 01.04.2019)
(218) - -
Lease liability (was rent pre 01.04.2019)
(183) - -
Taxes paid
(250) (834) (883)

(10,012) (10,143) (18,802)
Net cash flow provided from / (applied to)
operating activities 209 318 2,189


Cash flows from investing activities
Cash was provided from:
Repayments from suppliers and staff 8 - 9
Sale of property, plant and equipment 10 9 77
18 9 86
Cash was applied to:

Acquisition of intangible assets
(13) (79) (194)
Advance to supplier, franchisee
(133) - (47)
Acquisition of property, plant & equipment
(156) (520) (871)
BFG Share buy back & cancellation
(269) (1,515) (1,947)

(571) (2,114) (3,059)
Net cash flow applied to investing activities
(553) (2,105) (2,973)






Net movement in cash and cash equivalents
(344) (1,787) (784)
Exchange gain / (loss) on cash and cash equivalents
37 12 (14)
Opening cash and cash equivalents
5,503 6,301 6,301
Closing cash and cash equivalents
5,196 4,526 5,503

11
Burger Fuel Group Limited
Notes to the Interim Consolidated Financial Statements
For the period ended 30 September 2019

1) REPORTING ENTITIES AND STATUTORY BASE

Burger Fuel Group Limited is a company registered under the Companies Act 1993 and is listed with the New Zealand
Stock Exchange (NZSX). The company is a Financial Markets Conduct (FMC) reporting entity for the purposes of the
Financial Markets Conduct Act 2013 and its financial statements comply with that Act.

The financial statements presented are those of Burger Fuel Group Limited (the ‘Group’). A list of its wholly owned
subsidiaries is listed in note 2 of the financial statements.

BurgerFuel operates as a franchisor of gourmet burger & chicken restaurants and is a for-profit oriented entity,
incorporated and domiciled in New Zealand.

2) STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

2.1) STATEMENT OF COMPLIANCE

The condensed consolidated interim financial statements should be read in conjunction with the annual financial
statements for the year ended 31 March 2019, which have been prepared in accordance with NZ IFRS.

2.2) BASIS OF PREPARATION

2.2.1) REPORTING ENTITY

The consolidated financial statements for the Group are for the economic entity comprising Burger Fuel Group Limited
and its subsidiaries;

Burger Fuel (Dubai) NZ Limited BF Lease Company No 9 Limited BF Lease Company No 34 Limited
Burger Fuel (ME) DMCC BF Lease Company No 10 Limited BF Lease Company No 35 Limited
Burger Fuel International Limited BF Lease Company No 11 Limited BF Lease Company No 36 Limited
Burger Fuel (Australia) Pty Limited BF Lease Company No 12 Limited BF Lease Company No 37 Limited
Burger Fuel (Australia) No2 Pty Limited BF Lease Company No 13 Limited BF Lease Company No 38 Limited
Burger Fuel International Management Limited BF Lease Company No 14 Limited BF Lease Company No 39 Limited
Burger Fuel Limited BF Lease Company No 15 Limited BF Lease Company No 40 Limited
BurgerFuel Henderson Limited BF Lease Company No 16 Limited BF Lease Company No 41 Limited
Burger Fuel Takapuna Limited BF Lease Company No 17 Limited BF Lease Company No 42 Limited
Winner Winner Limited BF Lease Company No 18 Limited BF Lease Company No 43 Limited
Shake Out Limited BF Lease Company No 19 Limited BF Lease Company No 44 Limited
Concept Brands Limited BF Lease Company No 20 Limited BF Lease Company No 45 Limited
Burger Fuel Pty Limited BF Lease Company No 21 Limited BF Lease Company No 46 Limited
Burger Fuel Australia Pty Limited BF Lease Company No 22 Limited BF Lease Company No 47 Limited
Burger Fuel (USA) Inc. BF Lease Company No 23 Limited BF Lease Company No 48 Limited
Burger Fuel (USA) Management Inc. BF Lease Company No 24 Limited Burger Fuel Group Leases Limited
BF Lease Company Limited BF Lease Company No 25 Limited Burger Fuel Worldwide Limited
BF Lease Company No 1 Limited BF Lease Company No 26 Limited
Shake Out Newmarket Limited
BF Lease Company No 2 Limited BF Lease Company No 27 Limited

BF Lease Company No 3 Limited BF Lease Company No 28 Limited

BF Lease Company No 4 Limited BF Lease Company No 29 Limited

BF Lease Company No 5 Limited BF Lease Company No 30 Limited

BF Lease Company No 6 Limited BF Lease Company No 31 Limited

BF Lease Company No 7 Limited BF Lease Company No 32 Limited

BF Lease Company No 8 Limited BF Lease Company No 33 Limited

12
Burger Fuel Group Limited
Notes to the Interim Consolidated Financial Statements
For the period ended 30 September 2019

3) ACCOUNTING POLICIES

Except as described below, and for the adoption of IFRS 16, the treatment of the accounting policies and method of
computation applied are consistent with those of the annual financial statements for the year ended 31 March 2019, as
described in the annual financial statements.

4) SEGMENT INFORMATION

Operating Segments
The Group operates in four geographical segments – New Zealand, Australia, USA and the Middle East. All the
segments operations are made up of franchising fees, royalties and sales to franchisees. The segments are in the
business of Franchise Systems - Gourmet Burger Restaurants. New Zealand’s segment result is also due to the
amortisation of intangible assets.



September 2019
New Zealand
Australia Middle East USA Total


$’000 $’000 $’000 $’000 $’000
Revenue
6 months
6 months 6 months 6 months
6 months
Sales

4,256
- 89 - 4,345
Royalties

2,450
- 420 9 2,879
Franchising fees

84
- - - 84
Franchise Fees IFRS 15 Adjustment

74
- 23 7 104
Training Fees

38
- - 38
Property Management fees

57
- - 57
Advertising fees

1,882
- 20 - 1,902
Foreign exchange gain

(43)
43 - 152 152
Sundry income

807
- 64 73 944
Interest received

37
1 - - 38
Interest received - leases

719
- - - 719
Total Revenue

10,361 44 616 241 11,262

Interest Expense
- - - - -
Interest Expense leases occupied
218 - - - 218
Interest Expense leases non-occupied
719 - - - 719
Depreciation
260 - 2 - 262
Depreciation leases
305 - - - 305
Amortisation
72 - - - 72
Segment Result before Tax

83 91 352
152
678
Income Tax Expense 130 - - - 130
Segment Assets 43,457 439 176 862 44,934
Segment Liabilities 33,682 5 69 13 33,769

Acquisition of Property, Plant & Equipment & Intangible Assets

Other 168 - - - 168

13
Operating Segments (Continued)

September 2018
New Zealand
Australia Middle East USA Total

$’000 $’000 $’000 $’000 $’000
Revenue
6 months
6 months 6 months 6 months
6 months
Sales 4,390 - 95 - 4,485
Royalties 2,409 - 494 - 2,903
Franchising fees 71 - - - 71
Franchise Fees IFRS 15 Adjustment 91 - 31 - 122
Advertising fees 1,806 - 100 - 1,906
Foreign exchange gain (65) 38 - 167 140
Sundry income 997 - (2) 298 1,293
Interest income 46 1 - - 47
Total Revenue 9,745 39 718 465 10,967

Interest Expense
9 - - - 9
Depreciation
273 - 2 - 275
Amortisation
96 - - - 96
Segment Result before Tax 320 39 393
107
859
Income Tax Expense 173 - - 40 213
Segment Assets 13,125 489 204 354 14,172
Segment Liabilities 4,610 (205) 62 (419) 4,048

Acquisition of Property, Plant & Equipment & Intangible Assets

Other 599 - - - 599


March 2019
New Zealand Australia Middle East USA Total


12 months 12 months 12 months 12 months 12 months


$’000 $’000 $’000 $’000 $’000
Revenue



Sales
8,593 - 95 - 8,688
Royalties
4,872 - 1,065 1 5,938
Franchising fees
117 - - - 117
Franchise Fees IFRS 15 adjustment
183 - 48 13 244
Training Fees
30 - - - 30
Property Management Fees
55 - - - 55
Advertising fees
3,641 - 214 - 3,855
Foreign exchange gain
(53) (24) - 118 41
Sundry income
1,342 80 - 510 1,932
Interest received
86 1 - 41 128
Total Revenue
18,866 57 1,422 683 21,028

Interest Expense 10 1 - - 11
Depreciation 572 - 5 - 577
Amortisation 175 - - - 175
Segment Result Before Tax 1,043 52 662 99 1,856
Income Tax Expense 619 - - - 619
Segment Assets 13,750 372 120 875 15,117
Segment Liabilities 4,018 - 62 38 4,118

Acquisition of Property, Plant & Equipment & Intangible Assets

Other 1,065 - - - 1,065

14
Burger Fuel Group Limited
Notes to the Interim Consolidated Financial Statements
For the period ended 30 September 2019

5) NZ IFRS 16 – LEASES

Effective date from 1 April 2019

NZ IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases. It
provides much improved transparency and comparability of the Groups’ lease assets and lease liabilities for investors
and other users of general purpose financial statements and applies to all Tier 1 and Tier 2 for-profit reporting entities,
and is effective for annual periods beginning on or after 1 January 2019.

The Standard eliminates the classification of leases as either operating leases or finance leases. Instead, there is a
single lessee model which requires a lessee to recognise on its statement of financial position assets and liabilities for
all leases with a term of more than 12 months, unless the underlying asset is of low value.

NZ IFRS 16 significantly impacts the Group’s Statement of Financial Position as they hold the head leases on all the
New Zealand franchised and Company owned stores. In addition to the head office & warehouse leases, the Group
subleases the majority of the head leased properties to franchised store operators, giving rise to both lessee and lessor
treatment for these sub leases. The value of the leases that has been capitalised in the Group’s Statement of Financial
Position at 1 April 2019 is $30.9M. There was no impact on the Group’s opening retained earnings upon transition to
the new standard.

The BFG occupied leases
The Group recognised a $7.2M right of use asset and an offsetting lease liability as at 1 April 2019 for the current
occupied leases. These current occupied leases will be amortised to the Statement of Comprehensive Income over the
expected lease term of the underlying right of use assets as depreciation expense ($304K for the 6 months to 30
September 2019).

The BFG non-occupied leases
The Group recognised a $23.7M lease receivable and offsetting lease liability as at 1 April 2019 for the current non-
occupied leases that have been licenced to the franchisees on the same terms. These current non-occupied leases are
recognised in the Statement of Comprehensive Income as interest income & interest expense over the term of the
lease. This interest expense for the 6 months to 30 September 2019 was $719K but is negated with a lease income
entry in the financial statements, to recognise the fact that the leased premises have been licenced to the franchisees.

The right of use asset, lease receivable & lease liability amount is calculated to the lease expiry together with periods
covered by an option to extend, if the Group is reasonably certain to exercise that option.


6) BFG SHARE BUY BACK AND CANCELLATION

The Group purchased and cancelled 712,947 BFG shares on the 26
th
April 2019 from Franchise Brands LLC for
USD$0.25 per share (NZD$269,241 in total). This was the final tranche for Franchise Brands LLC’s initial 10%
shareholding.

Buy back &
Cancellation
BFG
Shareholding
Share
Capital
$'000
BFG Shareholding 1/04/2019

54,383,142 $14,087
BFG Buyback & cancellation 26/04/2019 (712,947) 53,670,195 ($269)
Contributed Equity 30 September 2019 $13,818


7) ACQUISITIONS AND DISPOSALS OF PROPERTY, PLANT, AND EQUIPMENT

During the six months to 30 September 2019, the Group acquired assets with a total cost of $156,006 (2018:
$519,960) and intangible assets of $12,750 (2018: $78,764).
The Group also disposed of assets with a net book value of $8,041 (2018: $33,220).

15

Burger Fuel Group Limited
Company Directory
As at 30 September 2019


Registered Office Accountants
Grant Thornton New Zealand Limited Grant Thornton New Zealand Limited
152 Fanshawe Street Level 4
Auckland 1011 152 Fanshawe Street

Auckland 1011
Company Number

1947191 Bridgepoint Group Accounting Pty Ltd

Suite 301, 8 West Street,
North Sydney
Date of Incorporation NSW 2060
14 June 2007 Australia

Directors Citrin Cooperman
Peter Brook - Chairman (Independent) 529 Fifth Avenue
Alan Dunn (Independent) New York, NY 10017
Josef Roberts (Executive) USA


Board Executives KPMG
Tyrone Foley (Chief Operating Officer)
Mark Piet (Chief Financial Officer / Company Secretary)
18 Viaduct Harbour Avenue,
Auckland 1140


Business Headquarters
66 Surrey Crescent

Grey Lynn Bankers
Auckland 1021 ASB Bank Limited

CBA Bank Limited (Australia)
Auditor Emirates NBD (UAE)
Baker Tilly Staples Rodway Bank of America Merrill Lynch (USA)
Level 9, Tower Centre

45 Queen Street

Auckland 1010





Solicitors
Kensington Swan, 18 Viaduct Harbour Avenue, Auckland 1011.
Buddle Findlay, PwC Tower, 188 Quay Street, PO Box 1433, Auckland 1140.
Wiggin and Dana LLP, Two Liberty Place, 50 S. 16th Street, Suite 2925, PA, 19102, USA.
Corporate Counsel Limited Solicitors, P.O Box 37-322, Parnell, Auckland 1151.

16