Preliminary Unaudited Results 31 March 2020

25 June 2020


NZX Release - FLLYR


Preliminary Unaudited Results

BLACKWELL GLOBAL HOLDINGS LIMITED – BGI reports its Preliminary unaudited results for the 12-
month period ended 31 March 2020.



Ends

For more information, please contact:
Mark Thornton
Chief Executive Officer
021 723 766

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1



Blackwell Global Holdings Limited (NZX: BGI)

Full Year preliminary unaudited announcement for the 12 months ended 31 March 2020



Commentary
AUCKLAND, New Zealand, 25 June 2020 - The Board of Blackwell Global Holdings Limited (NZX: BGI)
provides the market with their full year update for the 12 months ended 31 March 2020.

Results for Announcement to the Market

Reporting Period 12 months to 31 March 2020
Previous reporting period 12 months to 31 March 2019


Amount (000s) Percentage change
Revenue from ordinary activities NZ$436 (47%)
Loss from ordinary activities after
tax attributable to security holder
NZ$(693) (18.5%)
Net profit attributable to
shareholders
NZ$(693) (18.5%)

Interim/Final Dividend Amount per share Imputed amount per
share
The company does not propose to
pay a dividend at this time.
Not applicable Not applicable

Record Date Not applicable
Dividend Payment Date Not applicable

Comments: See below

2



Blackwell Global Holdings Limited (NZX: BGI)

Full Year preliminary unaudited announcement for the 12 months ended 31 March 2020

Lending Operation a Focus for the Company

During the course of the financial year Blackwell Global Holdings Limited (“BGI” and “the Company”)
has been concentrating on the ongoing development of its finance company operation.

The Company’s focus has, in particular been on:
 Continuing to develop its internal operational infrastructure to provide a platform for growing its
finance company operations;
 Deploying its funds towards good quality, moderate margin loan receivables. To this end, during the
financial year ended 31 March 2020, the Group has:
o Funded seventeen separate loan facilities;
o The total amount of funds deployed to date has been $11,154,389;
o The loans have been structured across a mix of capitalised interest arrangements, and interest
only loans;
o The loans have all been secured by first ranking mortgage securities over quality real estate
assets;
 Developing a bespoke investment/funding structure whereby the Company can facilitate investment
by third party wholesale investors into loan facilities procured and managed by the Company.

The Group’s revenue comprises interest and fee income from mortgage lending activities.

The ongoing challenge for the Group in respect of growing its finance company operation continues to be
the ability to raise debt finance from third party wholesale investors which can then be deployed towards
funding loan receivables, and generating interest and fee income, and ultimately a profit margin for the
Group. The Group is continuing to explore innovative new initiatives to secure more funding with a view to
continue growing the finance company operation in the future.

The loan book as at 31 March 2020 was $1.57 million. All loans were secured by first mortgages over
residential properties. The average lending to value ratio (LVR) was very low at an average of 52%. All loans
are current with no past-due assets.

Changes in Accounting Policy

Apart from the changes noted below, the consolidated financial statements have been prepared using same
accounting policies detailed in the Group's audited consolidated financial statements for the year the ended
31 March 2019.

Application of new and revised standards, amendments and interpretations
The Group has applied NZ IFRS 16: Leases for the first time in the current financial year. Details of the
impact of the application of these new NZ IFRSs are described below.

Application of NZ IFRS 16
NZ IFRS 16, ‘Leases’, replaces the current guidance in NZ IAS 17. Under NZ IFRS 16, a contract is, or
contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time
in exchange for consideration. Under NZ IAS 17, a lessee was required to make a distinction between a
finance lease (on balance sheet) and an operating lease (off balance sheet). NZ IFRS 16 now requires a
lessee to recognise a lease liability reflecting future lease payments and a ‘right-of-use asset’ for virtually all
lease contracts. The standard is effective for accounting periods beginning on or after 1 January 2019. The
Group adopted NZ IFRS 16 on 1 April 2019.

Adoption of NZ IFRS 16 has not had a material impact on the Group’s financial performance or financial
position because the Group has no material operating lease commitments.

There are no other NZ IFRS, or NZ IFRIC interpretations that are not yet effective that would be expected
to have a material impact on the Company.

3



Blackwell Global Holdings Limited (NZX: BGI)

Full Year preliminary unaudited announcement for the 12 months ended 31 March 2020

Convertible Notes

Compound financial instruments issued by the Group in the prior year comprise convertible notes.
The liability component of a compound financial instrument is recognised initially at the fair value of a similar
liability that does not have an equity conversion option. The equity component is recognised initially at the
difference between the fair value of the compound financial instrument as a whole and the fair value of the
liability component. Any directly attributable transaction costs are allocated to the liability and equity
components in proportion to their initial carrying amounts.

Subsequent to initial recognition, the liability component of a compound financial instrument is measured at
amortised cost using the effective interest method. The equity component of a compound financial
instrument is not re-measured subsequent to initial recognition except on conversion or expiry.

Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement
of the liability for at least 12 months after the end of the reporting period.

On 28 January 2020 the major shareholder, Blackwell Global Group Limited exercised its right to convert
$500,000 of the convertible notes into ordinary shares in Blackwell Global Holdings Limited. The conversion
into ordinary shares has been calculated at an issue price of $0.008 resulting in the issue of 62,500,000
ordinary shares.

The aggregated amortisation of the convertible notes, which related to the net present value of the bond
liability was transferred to other comprehensive income upon conversion of the notes into ordinary shares.

Bonds

The Bond Agreement with Blackwell Global Group Limited was amended by Deed of Variation dated 24
March 2020. The maturity date was extended from three to four years, and the interest rate reduced from
6% to 0% for six months starting 24 March 2020. The net present value of the bonds have been adjusted
accordingly on the balance sheet.

The impact of Coronavirus

After balance date the Government implemented containment measures to stop the spread of the
Coronavirus. The country’s borders were closed to non-residents from 19 March 2020. From 25 March 2020
alert level 4 meant the Company’s offices were forced to shut down completely until 27 April 2020 where
only some restrictions were lifted. The staff of Blackwell Global Group were able to continue working from
their homes.

The Company experienced a 30% decline in revenue in at least one month over the lockdown and restricted
period in comparison to prior year. They therefore were entitled and received a Government wage subsidy
to help pay two of its staff over 12 weeks.

Other than the above, there has been no reassessment of the useful life of assets or their residual values.
While the Company has secured a varied bond term, and interest rate mentioned above, and the present
value discount rate has been adjusted to reflect this change, it has not been further adjusted due to any
impact from the Coronavirus, as it is not deemed to have been affected.

Revenue from contracts with loan holding customers have not been impacted. No impairment losses have
been recognised on financial instruments in these unaudited results, as there has been no significant change
in the risk profile of the loan receivables.

Earnings per Share and Net Tangible Asset per security

The earnings per share are shown below the Consolidated Statement of Comprehensive Income. The net
tangible asset backing per security is shown below the Consolidated Statement of Position.

Audit

The consolidated financial statements are in the process of being audited.

4



Blackwell Global Holdings Limited (NZX: BGI)

Full Year preliminary unaudited announcement for the 12 months ended 31 March 2020


Future Events

Event Date
Annual Report due 31 August 2020


ENDS


Authority for this announcement
Mark Thornton
Chief Executive Officer
Ph: 021 723766
mark.thornton@nzf.co.nz
Date of release: 25 June 2020

5



Consolidated Statement of Comprehensive Income
Blackwell Global Holdings Limited
For the year ended 31 March 2020





2020 2019


$ $



Revenue



Interest and fee income 436,169 822,430
Other income 469 431,707

Total Income

436,638 1,254,137

Expenses



Directors' fees (286,500) (281,250)
Employee expenses (281,135) (622,717)
Interest expense (305,465) (519,919)
Other operating expenses (256,802) (415,181)

Total expenses

(1,129,902) (1,839,067)



Loss before income tax

(693,264) (584,930)



Income tax benefit/(expense) - -

Total comprehensive loss for the year

(693,264) (584,930)




Attributable to:



Owners of the parent company
(693,264) (584,930)



Earnings/(loss) per share


Basic (loss) per share (cents per share): (0.14) (0.13)
Diluted (loss) per share (cents per share): (0.14) (0.13)

6



Statement of Changes in Equity
Blackwell Global Holdings Limited
For the year ended 31 March 2020




Share Contributed Convertible Accumulated Total
capital capital note losses equity


reserve


$ $ $ $ $



Balance at 1 April 2018 12,110,746 102,013 114,716 (10,793,382) 1,534,093


Loss for the period - - - (584,930) (584,930)
Other comprehensive income - - - - -
Total comprehensive loss for the
year - - - (584,930) (584,930)


Contributed capital on the bonds
- 25,503 - - 25,503


Balance at 31 March 2019 12,110,746 127,516 114,716 (11,378,312) 974,666



Balance at 1 April 2019 12,110,746 127,516 114,716 (11,378,312) 974,666


Loss for the year - - - (693,264) (693,264)
Other comprehensive income - - - 77,001 77,001
Total comprehensive loss for the
year - - - (616,263) (616,263)


Issue of ordinary shares, net of
transactions costs (4,369) - - - (4,369)
Convertible notes converted to
shares 500,000 - - - 500,000
Reversal of convertible note
reserve - - (114,716) - (114,716)


Balance at 31 March 2020 12,606,377 127,516 - (11,994,576) 739,317

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Consolidated Statement of Financial Position
Blackwell Global Holdings Limited
As at 31 March 2020




2020 2019

$ $
Current assets

Cash and cash equivalents 1,805,615 1,513,055
Prepayments and other receivables 11,159 26,399
Loan receivables 1,548,901 5,377,175
Total current assets 3,365,676 6,916,629



Non-current assets

Prepayments and other receivables 75,000 75,500
Property, plant and equipment 10,126 3,780
Total non-current assets 85,126 79,280


Total assets 3,450,802 6,995,909



Current liabilities

Trade and other payables 83,279 103,583
Accruals, provisions and other liabilities 170,901 103,765
Borrowings 44,178 2,955,904
Total current liabilities 298,358 3,163,252


Non-current liabilities

Borrowings 2,413,127 2,857,991
Total liabilities 2,711,485 6,021,243


Net assets 739,317 974,666



Equity

Share capital 12,606,377 12,110,746
Contributed capital 127,516 127,516
Convertible note reserve - 114,716
Accumulated losses (11,994,576) (11,378,312)
Total equity 739,317 974,666




Net tangible assets per share (cents per share): 0.15 0.22

8



Consolidated Statement of Cash Flows
Blackwell Global Holdings Limited
For the year ended 31 March 2020




2020 2019

$ $



Cash flows from operating activities

Interest received 346,725 539,930
Lending, credit fees and other income received 125,066 208,659
Operating inflows 471,791 748,589



Net advances in loan receivables 3,820,159 (2,044,375)
Payments to suppliers and employees (775,745) (924,155)
Interest paid (290,040) (385,553)
Income taxes refunded 47 -
Repayment of GST liability (18,750) (82,838)
Operating outflows 2,735,672 (3,436,921)



Net cash used in operating activities 3,207,463 (2,688,332)





Cash flows used in investing activities

Purchase of property, plant and equipment (10,532) -
Net cash used in investing activities
(10,532)
-




Cash flows from financing activities

Increase in funding from bonds - 500,000
Proceeds from borrowings - 2,900,000
Payments of borrowings (2,900,000) -
Proceeds from convertible notes - -
Payments for issue of share capital (4,370) -
Net cash flow from financing activities (2,904,370) 3,400,000



Net increase in cash and cash equivalents
292,561 711,668
Cash and cash equivalents at the beginning of the period 1,513,055 801,387
Cash and cash equivalents at the end of the year 1,805,615 1,513,055



Reporting of Segments
Operating segments are reported in the manner consistent with the internal reporting provided to the chief
operating decision-maker. The chief operating decision maker is identified as the Board of Directors. The
Group internally reported as a single operating segment to the chief decision-maker.

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Results for announcement to the market
Name of issuer Blackwell Global Holdings Limited
Reporting Period 12 months to 31 March 2020
Previous Reporting Period 12 months to 31 March 2019
Currency

Amount (000s) Percentage change
Revenue from continuing
operations
$436 (47%)
Total Revenue $436 (47%)
Net profit/(loss) from
continuing operations
($693) (18.5%)
Total net profit/(loss) ($693) (18.5%)
Interim/Final Dividend
Amount per Quoted Equity
Security
It is not proposed to pay dividends
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 $0.22
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Not Applicable
Authority for this announcement
Name of person authorised
to make this announcement
Mark Thornton
Contact person for this
announcement
Mark Thornton
Contact phone number 021 723 766
Contact email address Mark.thornton@nzf.co.nz
Date of release through MAP 25/06/2020

Unaudited financial statements accompany this announcement.