Audited financial results for 12 months ended 31 March 2020
25 August 2020
NZX Release - ANNREP
Audited Annual Results
BLACKWELL GLOBAL HOLDINGS LIMITED - BGI reports its annual audited results for the 12-month
period ended 31 March 2020.
Ends
For more information,
please contact:
Mark Thornton
Chief Executive Officer
021 723 766
---
Blackwell Global Holdings Limited
Annual Report
For the year ended 31 March 2020
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34
CONTENTS
Chairman’s Report
Corporate Governance Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Changes in Equity
Consolidated Statement of Financial Position
Consolidated Statement of Cash Flows
Reconciliation of Net Operating Cash Flows to Net Loss After Tax
Notes to the Consolidated Financial Statements
Additional Information
Company Directory
Independent Auditor's Report to the Shareholders
37
38
CHAIRMAN’S REPORT
BLACKWELL GLOBAL HOLDINGS LIMITED
For the year ended 31 March 2020
2
Dear Shareholders
The last quarter of the financial year has been particularly disrupted due to the Covid pandemic, and the Board
is pleased that the Company has been able to traverse the period of financial and uneconomic uncertainty.
During the financial year the Group’s focus has 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, structured across a mix of
capitalised interest arrangements, and interest only loans. The loans have all been secured by first
ranking mortgage securities over quality real estate assets
;
•
Further developing a bespoke investment/funding structure whereby the Group can facilitate investment
by third party investors into loan facilities procured and managed by the Group.
The Group’s revenue comprises interest and fee income from mortgage lending activities.
The Group considers that there is strong demand for good quality second tier/non-bank funding in the New
Zealand market, and there is still an opportunity to make more good quality loans, subject to the availability of
additional capital of third party funding to the Group which would enable the Group to fund the loans.
The ongoing challenge for the Group in respect of growing its finance company operation is the ability to continue
to raise debt finance from third party investors which can then be deployed towards funding loan receivables,
and generating a profit margin for the Group. The Group is continuing to explore innovative new initiatives to
secure more funding with a view to aggressively growing the finance company operation in the future.
The loan book as at 31 March 2020 was $1.55 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 58.61%. All loans are current
with no past-due assets.
The Group has adequate cash reserves to meet ongoing needs for the foreseeable future, but lending growth is
required to increase revenue, and this requires additional funding from the major shareholder and attracting new
investors.
The Board is currently considering developing a range of initiatives which may assist the future growth of the
business, including but not limited to:
•
Potentially undertaking a capital raising initiative to raise additional capital to fund the growth of th
e
loa
n book;
and/or
•
Consider exploring the potential acquisition of a complimentary finance business.
The Board will keep you appraised of any developments with respect to progress made with any of the potential
initiatives.
Yours sincerely
Sean Joyce
Chairman
24 August 2020
Corporate Governance Statement
BLACKWELL GLOBAL HOLDINGS LIMITED
For the year ended 31 March 2020
3
The Board of the Group is committed to acting with integrity and expects high standards of behaviour and
accountability from all its officers and staff. These standards are detailed in the Group’s Board approved Code of
Ethics Policy document. Other key governance documents are available to investors and stakeholders on BGI’s
website. They include the Code of Ethics, Insider Trading and Financial Products Dealing Policy, Health and
Safety Policy, Continuous Disclosure Policy, Remuneration Policy, Whistleblowing Policy and Board and
Committee Charters.
The Board recognises the need to continue to enhance its governance standards in line with developing best
practice. In doing so, the Board has considered standards, guidelines and principles published by a range of
interested parties in New Zealand and internationally. The governance principles adopted by the Board are
designed to meet best practice.
Role of the Board
The Chairman is elected by the Board of Directors and it is his role to manage the Board in the most effective
manner and to provide a conduit between the Board and the Chief Executive Officer. He has no significant
external commitments that conflict with this role. The Company maintains an Interests Register and if necessary,
conflicts of interest are recorded in the minutes. Procedures for the operation of the Board, including the
appointment and removal of Directors, are governed by the Company's Constitution.
The Board Charter sets out, in detail, the composition, responsibilities and roles of the Board and directors. The
Board reviews its performance against these responsibilities annually.
The Board of Directors’ corporate governance responsibilities include overseeing the management of the
Company and Group to ensure proper direction and control of Blackwell’s activities. Corporate Governance
encompasses the requirement for the Board to discharge such responsibilities, to be accountable to shareholders
and other stakeholders for the performance of the Group, and to ensure that the Group is compliant with laws
and standards.
The Board establishes the corporate objectives of the Group and monitors management’s implementation of
strategies to achieve the objectives. It is engaged in on-going strategic planning in order to meet the objectives.
It provides an oversight of compliance and risk, it measures, and monitors management performance and it sets
in place the policy framework within which the Group operates.
The Board's primary objective is the enhancement of shareholder value by following appropriate strategies and
ensuring effective and innovative use of available Group resources. Day-to-day management of the Company is
delegated to the Group Chief Executive Officer.
Board Meetings
The Board normally meets quarterly each year for scheduled meetings. Additional meetings are held where
specific matters require attention between scheduled meetings. Board meetings are used to monitor, challenge,
develop and fully understand business and operational issues.
Composition of the Board
The Board of the Group has a broad base of knowledge and experience in energy, engineering, financial
management, legal compliance and other expertise to meet the Company and Group’s objectives. The details
and backgrounds of the directors are detailed on the Company’s website.
The Constitution provides that there will be no less than three and not more than nine directors. NZX requirements
are that at least two directors are independent directors.
The Board has determined, based on information provided by directors regarding their interests, that at 31 March
2020, Sean Joyce and Craig Alexander, are independent directors. The Board makes an assessment on the
independence of each director after consideration of the listing rules, the NZX Corporate Governance Code,
guidance notes and legal advice.
Corporate Governance Statement
BLACKWELL GLOBAL HOLDINGS LIMITED
For the year ended 31 March 2020
4
Criteria for Board Membership
When a vacancy arises, the Board will identify candidates with a mix of capabilities and perspectives considered
necessary for the Board to carry out its responsibilities effectively. A director appointed by the Board must stand
for election at the next annual meeting. At each annual meeting one-third of directors (excluding the Managing
Director) must retire by rotation. Retiring directors are eligible for re-election.
Board Committees
The Board has established standing Committees (described below) that focus on specific responsibilities in
greater detail than is possible for the Board as a whole. All committee proceedings are reported back to the Board
and each operates under a Board approved Committee Charter that sets out its delegation and responsibility.
Audit and Risk Committee
The Audit and Risk Committee is responsible for monitoring the on-going effectiveness of risk management
activities. The Committee monitors trends in the Group’s risk profile and considers how the business manages
or mitigates key risk exposures. It implements risk management through its business processes of planning,
budgeting, investment, project analysis and operations management. The Group has a Risk Management Policy
that guides the risk management framework and the maintenance and monitoring of the Company’s risk register.
The Audit and Risk Committee also monitors and oversees the quality of financial reporting and financial
management. In order to achieve this the Committee considers accounting and audit issues and makes
recommendations to the Board of Directors as required and monitors the role, responsibility and performance of
the external auditor. The function of the Audit and Risk Committee is to assist the Board in carrying out its
responsibilities under the Companies Act 1993 and the Financial Reporting Act 2013 on matters relating to the
Group’s accounting practices, policies and controls relevant to the financial position, and to liaise with external
auditors on behalf of the Board of Directors.
The Audit and Risk Committee at the end of the financial year comprised Sean Joyce (Chair), Craig Alexander
and Ewe Leong Lim.
Remuneration and Nomination Committee
The Remuneration and Nomination Committee’s purpose is to review Directors’ fees, the Chief Executive
Officer’s remuneration package and performance, the policy for remuneration of senior management, ensure the
Company has formal and transparent processes for the nomination and appointment of Directors and to identify
any skill gaps to ensure diversity and experience on the Board. These duties form the basis of recommendations
to the Board.
The Remuneration and Nomination Committee is also responsible for: obtaining assurance that the Group's
human resources policies and practices support achievement of the Group's goals; overseeing appointments of
the Group Chief Executive Officer, roles reporting to the Group Chief Executive Officer, and key professional
advisors in the area of legal, tax and public relations, and overseeing the development of key employees.
The Remuneration and Nomination Committee at the end of the financial year comprised Sean Joyce (Chair),
Craig Alexander and Ewe Leong Lim.
Health and Safety Committee
The Health and Safety Committee's primary objective is to assist the Board in fulfilling its responsibilities and
objectives in all matters related to health and safety. The Health and Safety Committee at the end of the financial
year comprised Sean Joyce (Chair), Craig Alexander and Ewe Leong Lim.
Trading in Shares
The Group has a detailed Insider Trading and Financial Products Dealing Policy applying to all directors and
employees. A procedure must be followed to obtain consent to trade in the Company's shares at all times.
Corporate Governance Statement
BLACKWELL GLOBAL HOLDINGS LIMITED
For the year ended 31 March 2020
5
Generally trading is permitted from the release of interim results until 28 February and from the release of the
final results until 31 August. However, directors and employees are not able to trade in Company shares if they
are in possession of unpublished price sensitive information.
The Group reinforces these measures by requiring that anyone designated as having the opportunity to access
price sensitive information can transact in the Company’s securities only with the prior approval of the Group
Secretary and Chairman.
Timely and Balanced Disclosure
BGI maintains a Continuous Disclosure Policy. Continuous disclosure obligations in the NZX Main Board Listing
Rules require all listed companies to advise the market about any material events and developments as soon as
the Company becomes aware of them. The Company complies with these obligations on an on-going basis. The
Group has in place procedures designed to ensure compliance with the NZX listing rules such that all investors
have equal and timely access to material information concerning the Group, including its financial situation,
performance, ownership and governance. Group announcements are factual and presented in a clear and
balanced way. Accountability for compliance with disclosure obligations is with the Group Chief Executive Officer,
Mark Thornton. Significant market announcements, including the preliminary announcement of the half year and
full year results, and the consolidated financial statements for those periods, require review by the full Board.
NZX Corporate Governance Code
A full statement on the extent to which the Group has followed the recommendations in the NZX Corporate
Governance Code during the year is available on BGI’s website, www.bgholdings.co.nz/investor-calendar/.
Generally the Group does follow the recommendations in the NZX Corporate Governance Code. However, the
Group does not follow the following recommendations:
Recommendation 2.5: The Group does not have a formal diversity policy, and has not had one at any
stage during the year. The Group does not have a formal diversity policy given there are only male
directors and executives working within the Group at this time. While there is no formal diversity policy,
and no formal alternative governance practices relating to diversity have been adopted, the Group
recognises the wide-ranging benefits that diversity brings to an organisation and its workplaces. The
Group endeavours to ensure diversity at all levels of the organisation to ensure a balance of skills and
perspectives are available in the service of our shareholders and customers.
Recommendation 2.8: The Group does not have a majority of independent directors, and has not at any
stage during the year. Only two of the five directors are considered independent. The current composition
of the Board in respect of independent directors versus non-independent directors arose following the
restructure of the Group several years ago, where the incoming majority shareholder nominated three
new non-independent directors to join the Board. Since that time, the composition of the Board has
remained unchanged and the Board has sought nominations for new directors each year, but has yet to
receive any such nominations. Similarly, the Board does not consider it appropriate to incur additional
costs associated with proactively seeking to engage an additional independent director at this time. In
the event of any transactions between the Group and a non-independent director, or their associates,
the general principle followed is that the independent directors must approve any such transaction before
such a transaction will proceed.
Recommendation 3.1: The Group does not follow one aspect of this recommendation because the chair
of the Audit and Risk Committee is also the chair of the Board and has been for the full year. The
members of the Audit and Risk Committee consider the Chair of the Audit and Risk Committee to be the
best qualified member of the Audit and Risk Committee to assume that role given his prior experience in
a wide range of audit process during his other engagements as a director and an advisor to various listed
companies. All decisions to be made by the Audit and Risk Committee require approval of a majority of
the Audit and Risk Committee. The Chair does not have a second or casting vote.
Corporate Governance Statement
BLACKWELL GLOBAL HOLDINGS LIMITED
For the year ended 31 March 2020
6
Diversity
As at 31 March 2020, the gender balance of the Group's directors, officers and all employees were as follows:
Direct
orsO
ffi
cersEmployees
20202019202020192020 2019
Female000000
Male6*52121
Total6*52121
*O
ne of the directors is an alternate director.
Consolidated Statement of Comprehensive Income
Blackwell Global Holdings Limited
For the year ended 31 March 2020
7
2020 2019
Notes
$ $
Revenue
Interest and fee income 5 436,170 822,430
Other income 5 156,359 431,707
Total Income 592,529 1,254,137
Expenses
Directors' fees 25.1 (286,500) (281,250)
Employee expenses (275,400) (622,717)
Interest expense (283,283) (519,919)
Other operating expenses 6 (412,693) (415,181)
Total expenses (1,257,876) (1,839,067)
Loss before income tax (665,347) (584,930)
Income tax benefit/(expense) 7 - -
Total comprehensive loss for the year (665,347) (584,930)
Attributable to:
Owners of the parent company (665,347) (584,930)
Earnings/(loss) per share
Basic (loss) per share (cents per share): 10 (0.15) (0.13)
Diluted (loss) per share (cents per share): 10 (0.15) (0.13)
The ac
companying notes form part of these consolidated financial statements and should be read in conjunction with them.
Consolidated Statement of Changes in Equity
Blackwell Global Holdings Limited
For the year ended 31 March 2020
8
Notes 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)
Total comprehensive loss
for the year - - - (584,930) (584,930)
Contributed capital on the
bonds 17.1 -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 - - - (665,347) (665,347)
Total comprehensive loss
for the year - - - (665,347) (665,347)
Convertible notes
converted to shares 17.2 495,631 - - - 495,631
Reversal of convertible note
reserve - - (114,716) -(114,716)
Balance at 31 March 2020 12,606,377 127,516 -(12,043,659) 690,233
The ac
companying notes form part of these consolidated financial statements and should be read in conjunction with them.
Consolidated Statement of Financial Position
Blackwell Global Holdings Limited
As at 31 March 2020
9
2020 2019
Notes
$ $
Current assets
Cash and cash equivalents
18
1,805,615 1,513,055
Prepayments and other receivables 12 16,894 26,399
Loan receivables 16 1,548,901 5,377,175
Total current assets 3,371,411 6,916,629
Non-current assets
Prepayments and other receivables 12 75,000 75,500
Property, plant and equipment 13 10,126 3,780
Total non-current assets 85,126 79,280
Total assets 3,456,537 6,995,909
Current liabilities
Trade and other payables 14 83,279 103,583
Accruals, provisions and other liabilities 15 170,901 103,765
Borrowings 17 44,178 2,955,904
Total current liabilities 298,358 3,163,252
Non-current liabilities
Borrowings 17 2,467,946 2,857,991
Total non-current liabilities 2,467,946 2,857,991
Total liabilities 2,766,303 6,021,243
Net assets 690,233 974,666
Equity
Share capital 20 12,606,377 12,110,746
Contributed capital 17.1 127,516 127,516
Convertible note reserve 17.2 -114,716
Accumulated losses (12,043,659) (11,378,312)
Total equity 690,233 974,666
Net tangible assets per share (cents per share): 11 0.14 0.22
For and on behalf of the Board:
DirectorDirector
Dated: 24 August 2020
The accompanying notes form part of these consolidated financial statements and should be read in conjunction with them.
Consolidated Statement of Cash Flows
Blackwell Global Holdings Limited
For the year ended 31 March 2020
10
2020
2019
Notes
$ $
Cash flows from operatin
g 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 from / (used in) operating activities
3,207,463 (2,688,332)
Cash flows used in investin
g activities
Purchase of propert
y, plant and equipment
(10,532) -
Net cash from /
(used in) investing activities (10,532) -
Cash flows from financin
g activities
Increase in fundin
g from bonds 17.1
-
500,000
Proceeds from borrowin
gs 17
-
2,900,000
Payments of borrowings 17
(2,900,000)
-
Pa
yments for issue of share capital
(4,370)
-
Net cash from /
(used in) 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 be
ginning of the period 24.3 1,513,055 801,387
Cash and cash equivalents at the end of the
year 18 1,805,615 1,513,055
The accompanying notes form part of these consolidated financial statements and should be read in conjunction with them.
Reconciliation of Net Operating Cash Flows to Net Loss After Tax
Blackwell Global Holdings Limited
For the year ended 31 March 2020
11
2020 2019
Notes $ $
Net loss for the year
(665,347) (584,930)
Adjustments for:
Depreciation 13 4,186 2,957
Capitalised interest expense
(4,159) 80,036
Non-operating items in sundry income
(103) (5,069)
(665,423) (507,006)
Changes in net assets and liabilities:
(Increase) / decrease in loan receivables (excluding deferred
revenue
) 16 3,843,807 (2,094,415)
Increase /
(decrease) in deferred revenue 15,16 (1,943) (23,800)
(Increase) / decrease in prepayments and other receivables 12 9,506 (17,251)
Increase /
(decrease) in trade and other payables 14 (20,303) (33,142)
Increase /
(decrease) in accruals, provisions and other liabilities 15 53,545 (30,404)
Increase /
(decrease) in interest accrual on borrowings 17 (11,726) 17,686
Net cash
(used in)/generated by operating activities
3,207,463 (2,688,332)
The accompanying notes form part of these consolidated financial statements and should be read in conjunction with them.
Notes to the Consolidated Financial Statements
Blackwell Global Holdings Limited
For the year ended 31 March 2020
12
1. General Information
These consolidated financial statements are for Blackwell Global Holdings Limited (the “Company”) and its
subsidiaries (together the “Group”).
The Company and its subsidiaries are limited liability companies, domiciled and incorporated in New Zealand.
The Company is listed by NZX Limited on the NZX Main Board (“NZX”).
The Company is registered under the Companies Act 1993 and is an FMC Reporting Entity under
part 7 of the Financial Markets Conduct Act 2013.
The Group operates a financial services business focusing on mortgage lending. There has been
no change in the nature of the Group’s business during the year.
There are no seasonal or cyclical influences on these financial results.
2. Basis of Preparation
These consolidated financial statements have been prepared in accordance with Generally Accepted
Accounting Practice in New Zealand (‘NZ GAAP’) and with the requirements of the Financial Markets Conduct
Act 2013 and the NZX Main Board Listing Rules. The Company is a for-profit entity for the purposes of NZ
GAAP. The consolidated financial statements comply with New Zealand equivalents to International Financial
Reporting Standards (“NZ IFRS”) and International Financial Reporting Standards (IFRS).
The consolidated financial statements have been prepared on a historical cost basis except for any financial
instruments that are measured at revalued amounts or fair values at the end of each reporting period, as
explained in the accounting policies below. Historical cost is generally based on the fair value of the
consideration given in exchange for goods or services.
The consolidated financial statements are presented in New Zealand dollars.
3. Summary of significant accounting policies
Apart from the changes noted below, the consolidated financial statements have been prepared using the
same accounting policies detailed in the Group's audited consolidated financial statements for the year ended
31 March 2019.
3.1 Application of new and revised NZ IFRSs, amendments and interpretations
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 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.
3.2 Basis of consolidation
The consolidated financial statements of the Group incorporate the assets, liabilities and results of all controlled
entities. Subsidiaries are entities (including structured entities) over which the Group has control. The Group
controls an entity when the group is exposed to, or has rights to, variable returns from its involvement with the
entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries
Notes to the Consolidated Financial Statements
Blackwell Global Holdings Limited
For the year ended 31 March 2020
13
are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from
the date that control ceases.
The acquisition method of accounting is used to account for business combinations by the group.
All intercompany transactions, balances and any recognised income and expense (except for foreign currency
transaction gains or losses) between controlled entities are eliminated in full on consolidation.
3.3 Revenue
Loan fee revenue is recognised as each performance obligation is satisfied. Loan acceptance fees charged at
the initiation of a loan are recognised as deferred income and amortised over the expected life of the loan. Fees
for other services are recognised as the service is performed.
In the 2019 income year, sundry income represents the benefit received from Blackwell Global Investments
Limited paying costs on behalf of the Group. This year $155,891 of the sundry income related to the same. It
has been agreed that these costs will not be recovered from the Group. Refer to note 25: Related Parties.
3.4 Interest income and similar expenses from financial instruments measured at amortised cost
For all financial instruments measured at amortised cost, interest income and expense is recorded at the
effective interest rate, which is the rate that exactly discounts estimated future cash payments or receipts
through the expected life of the financial instrument, or a shorter period where appropriate, to the net carrying
amount of the financial asset or liability. The calculation takes into account all contractual terms of the financial
instrument (for example, prepayment options) and includes any fees or incremental costs that are directly
attributable to the instrument and are an integral part of the effective interest rate, but not future credit losses.
The adjusted carrying amount is calculated based on the original effective interest rate and the change in
carrying amount is recorded as interest income or expense.
The interest expense includes the amortisation of bonds and convertible notes premiums.
3.5 Government Grants
Government grant income is recorded in the Statement of Comprehensive Income as it is utilised. The unused
portion is recorded as deferred income reported within accruals, provisions and other liabilities. The
Government’s Wage Subsidy Scheme was designed to support employers and their staff to maintain an
employment connection and ensure an income for affected employees during the initial impact of COVID-19.
The conditions of the grant are that the Company pay its staff at least 80% of their salary for a twelve-week
period, with best efforts to keep staff employed after the twelve weeks.
3.6 Expense Recognition
All expenses are recognised in the Consolidated Statement of Comprehensive Income on an accrual basis.
3.7 Employee Expenses
Liabilities for wages and salaries, including non-monetary benefits, are measured at the amounts expected to
be paid when the liabilities are settled. The liabilities are presented as current liabilities and included in the
accruals, provisions and other liabilities in the Consolidated Statement of Financial Position.
3.8 Income Tax
Income tax expense comprises current and deferred tax. Income tax expense is recognised in the Consolidated
Statement of Comprehensive Income except to the extent that it relates to items recognised directly in equity,
in which case it is recognised in equity.
Notes to the Consolidated Financial Statements
Blackwell Global Holdings Limited
For the year ended 31 March 2020
14
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or
substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Deferred tax is recognised using the liability method, providing for temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.
Deferred tax is not recognised for the following temporary differences: the initial recognition of goodwill, the
initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither
accounting nor taxable profit at the time of the transaction, and differences relating to investments in subsidiaries
and joint operations to the extent that they probably will not reverse in the foreseeable future. Deferred tax is
measured at the tax rates that are expected to be applied to the temporary differences when they reverse,
based on the laws that have been enacted or substantively enacted by the reporting date.
In principle deferred tax liabilities are recognised from taxable temporary timing differences. Deferred tax assets
are only recognised to the extent that it is probable that future taxable profits will be available against which
deductible temporary differences and unused tax losses and tax credits can be recognised. Deferred tax assets
are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related
tax benefit will be recognised.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation
authority and the Group has a legally enforceable right to offset current tax assets against current tax liabilities.
3.9 Goods and Services Tax (GST)
The Group is not registered for GST. Therefore, all amounts are stated inclusive of GST.
3.10 Financial Instruments
Recognition and Derecognition
Financial assets and financial liabilities are recognised in the Group’s Consolidated Statement of Financial
Position when the Group becomes a party to the contractual provisions of the instrument.
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset
expire, or when the financial asset and substantially all the risks and rewards are transferred. A financial
liability is derecognised when it is extinguished, discharged, cancelled or expires.
Financial Assets
Classification and initial measurement
Except for those trade receivables that do not contain a significant financing component and are measured at
the transaction price in accordance with IFRS 15, all financial assets are initially measured at fair value
adjusted for transaction costs (where applicable).
Financial assets, other than those designated and effective as hedging instruments, are classified into the
following categories:
• Amortised cost
• Fair value through profit or loss (FVTPL)
• Fair value through other comprehensive income (FVOCI).
The classification is determined by both:
• the entity’s business model for managing the financial asset
• the contractual cash flow characteristics of the financial asset.
Transaction costs that are directly attributable to the acquisition of financial assets or financial liabilities at fair
value through profit or loss are recognised immediately in profit or loss.
Loan Receivables
Past due but not impaired assets were any asset which had not been operated by the counterparty within their
key terms but were not considered to be impaired by the Group.
Notes to the Consolidated Financial Statements
Blackwell Global Holdings Limited
For the year ended 31 March 2020
15
Individually impaired assets were those loans for which the Group had evidence that it would be unable to collect
all principal and interest due according to the contractual terms of the loan.
Credit impairment provisions were made where events had occurred leading to an expectation of reduced future
cash flows from certain receivables. These provisions were made in some cases against an individual loan and
in other cases on a collective basis. When all appropriate collection and legal action had been performed and
the loan was known to be non-recoverable, it was written off against the related provision for impairment.
Bad debts provided for were written off against individual or collective provisions. Amounts required to bring the
provisions to their assessed levels were recognised in profit or loss. Any future recoveries of amounts provided
for were recognised in profit or loss.
Individual provisioning
Specific impairment provisions were made where events have occurred leading to an expectation of reduced
future cash flows from certain receivables. For individually significant loans for which the assessed risk grade
was considered a 'Grade 5 - Some loss expected from forced sale of securities if full repayment cannot be done
by refinance', an individual assessment was made of an appropriate provision for credit impairment.
Credit impairments were recognised as the difference between the carrying value of the loan and the discounted
value of management's best estimate of future cash repayments and proceeds from any security held
(discounted at the loan's original effective interest rate). All relevant considerations that had a bearing on the
expected future cash flows were taken into account, including the business prospects for the customer, the
likely recognised value of collateral, the Group's position relative to other claimants, the reliability of customer
information and the likely cost and duration of the work-out process. Subjective judgement was made in this
process. Furthermore, judgement could change with time as new information became available or as work-out
strategies evolved, resulting in revisions to the impairment provision as individual decisions were taken.
Changes in judgement could have a material impact on the consolidated financial statements.
Adequacy of individual provisions was assessed in respect of each loan depending on the size of the loan at
the board meetings.
Subsequent measurement of financial assets
Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet the following conditions (and are not
designated as FVTPL):
• They are held within a business model whose objective is to hold the financial assets and collect its
contractual cash flows
• The contractual terms of the financial assets give rise to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
After initial recognition, these are measured at amortised cost using the effective interest method. Discounting
is omitted where the effect of discounting is immaterial. The Group’s cash and cash equivalents, trade and most
other receivables fall into this category of financial instruments.
Financial assets at fair value through profit or loss (FVTPL)
Financial assets that are held within a different business model other than ‘hold to collect’ or ‘hold to collect and
sell’ are categorised at fair value through profit and loss. Further, irrespective of business model financial assets
whose contractual cash flows are not solely payments of principal and interest are accounted for at FVTPL. All
derivative financial instruments fall into this category, except for those designated and effective as hedging
instruments.
Financial assets at fair value through other comprehensive income (FVOCI)
The Group accounts for financial assets at FVOCI if the assets meet the following conditions:
• they are held under a business model whose objective it is “hold to collect” the associated cash flows
and sell and
Notes to the Consolidated Financial Statements
Blackwell Global Holdings Limited
For the year ended 31 March 2020
16
• the contractual terms of the financial assets give rise to cash flows that are solely payments of principal
and interest on the principal amount outstanding. The Group did not have any assets classified at
FVOCI at reporting date.
Amortised cost and effective interest method
The effective interest method is a method of calculating the amortised cost of a financial asset and assigning
the related interest income over the appropriate period. For financial assets other than those purchased or
assets that are credit impaired on initial recognition, the effective interest rate is the rate that exactly discounts
estimated future cash through the expected life of the financial asset, or, where appropriate, a shorter period,
to the gross carrying amount of the financial asset on initial recognition.
Impairment of financial assets
IFRS 9’s impairment requirements use forward-looking information to recognise expected credit losses – the
‘expected credit loss (ECL) model’. Relevant instruments within the scope of the new requirements included
loans and other debt-type financial assets measured at amortised cost and FVOCI, trade receivables, contract
assets recognised and measured under IFRS 15 and loan commitments.
Recognition of credit losses is no longer dependent on the Group first identifying a credit loss event. Instead the
Group considers a broader range of information when assessing credit risk and measuring expected credit
losses, including past events, current conditions, reasonable and supportable forecasts that affect the expected
collectability of the future cash flows of the instrument. In applying this forward-looking approach, a distinction
is made between:
Stage 1: Financial instruments that have not deteriorated significantly in credit quality since initial recognition or
that have low credit risk;
Stage 2: Financial instruments that have deteriorated significantly in credit quality since initial recognition and
whose credit risk is not low;
Stage 3: Financial assets that have objective evidence of impairment at the reporting date.
‘12-month expected credit losses’ are recognised for the first category while ‘lifetime expected credit losses’ are
recognised for the second and third category. Measurement of the expected credit losses is determined by a
probability-weighted estimate of credit losses over the expected life of the financial instrument.
In assessing whether the credit risk on a financial asset has increased significantly since initial recognition, the
Group compares the risk of a default occurring on the financial asset at the reporting date with the risk of a
default occurring on the financial asset at the date of initial recognition. In making this assessment, the Group
considers both quantitative and qualitative information. The nature of the Group’s finance receivables is short-
term residential property lending with a predominant focus on the underlying security value of the finance
receivable (i.e. the residential property value) in the credit assessment. Credit risk information is updated and
monitored regularly. Loan receivables are subject to regular scrutiny, as a key component of credit risk
management. This includes a review of the borrower’s repayment history and any interest arrears; any changes
in the borrowers’ circumstances which could impact on their ability to repay either interest or principal amounts
on their due date; and any movement in the security value. The Group regularly monitors the effectiveness of
the criteria used to identify whether there has been a significant increase in credit risk and revises them as
appropriate to ensure that the criteria are capable of identifying significant increase in credit risk before the
amount becomes past due.
Financial Liabilities
Financial liabilities are classified into one of the following measurement categories:
• those to be measured subsequently at fair value through profit or loss (‘FVTPL'); and
• those to be measured at amortised cost.
At initial recognition financial liabilities are measured at fair value plus transaction costs that are directly
attributable to the issue of the financial liabilities. The amortised cost of a financial liability is the amount at which
the financial liability is measured at initial recognition minus the principal repayments, plus the cumulative
amortisation using the effective interest method of any difference between that initial amount and the maturity
Notes to the Consolidated Financial Statements
Blackwell Global Holdings Limited
For the year ended 31 March 2020
17
amount. The effective interest method is a method of calculating the amortised cost of a financial liability and of
allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts
estimated future cash payments through the expected life of the financial liability, or (where appropriate) a
shorter period, to the amortised cost of a financial liability. The Group's financial liabilities measured at amortised
cost include Bonds. The Group derecognises financial liabilities when, and only when, the Group’s obligations
are discharged, cancelled or have expired. The difference between the carrying amount of the financial liability
derecognised and the consideration paid and payable is recognised in profit or loss.
3.11 Property, Plant and Equipment and Depreciation
All property, plant and equipment are recorded at historical cost less accumulated depreciation. Historical cost
includes expenditure that is directly attributable to the acquisition of the items. Depreciation of the assets has
been calculated at the maximum rates permitted by the Income Tax Act 2007. The entity has asset classes as
set out below:
Plant and IT equipment: depreciation rates of 40-50%
3.12 Provisions
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation
that can be estimated reliably, and it is probable that an outflow of economic resources will be required to settle
the obligation.
Provisions are measured at the present value of management's best estimate of the expenditure required to
settle the present obligation at the reporting date. If the effect of the time value of money is material, provisions
are determined by discounting the expected future cash flows at a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the liability.
The increase in the provision resulting from the passage of time is recognised in finance costs. If economic
resources required to settle a provision are expected to be recovered from a third party, the receivable is
recognised as an asset if it is virtually certain that recovery will be received, and the amount of the receivable
can be reliably measured.
3.13 Borrowings
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently
carried at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption
value is recognised in the Consolidated Statement of Comprehensive Income over the period of the borrowings
using the effective interest method.
3.14 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
Notes to the Consolidated Financial Statements
Blackwell Global Holdings Limited
For the year ended 31 March 2020
18
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 netted against interest expense upon conversion of the notes into ordinary shares.
3.15 The Impact of Coronavirus
At the end of the year 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 (refer to note 17.1), 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 audited results, as there has been no significant change in the risk
profile of the loan receivables.
3.16 Trade and Other Payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial
year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. Trade
and other payables are presented as current liabilities unless payment is not due within 12 months after the
reporting period. They are recognised initially at their fair value and subsequently measured at amortised cost
using the effective interest method.
3.17 Share Capital
Ordinary Shares
Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity.
3.18 Cash Flows
The following are the definitions used in the Consolidated Statement of Cash Flows:
Cash and cash equivalents are short term, highly liquid investments that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value.
Operating activities are the principal revenue-producing activities of the Group and other activities that are not
investing or financing activities.
Investing activities are the acquisition and disposal of long-term assets and other investments not included in
cash and cash equivalents.
Financing activities are activities that result in changes in the size and composition of the contributed equity and
borrowings of the Group.
Notes to the Consolidated Financial Statements
Blackwell Global Holdings Limited
For the year ended 31 March 2020
19
4. Critical Estimates and Judgements used in applying Accounting Policies
The Group prepares its consolidated financial statements in accordance with NZ IFRS, the application of which
often requires judgements to be made by management when formulating the Group's financial position and
results. Under NZ IFRS, the Directors are required to adopt those accounting policies most appropriate to the
Group's circumstances for the purpose of presenting a true and fair view of the Group's financial position,
financial performance and cash flows.
In determining and applying accounting policies, judgement is often required in respect of items where the
choice of specific policy, accounting estimate or assumption to be followed could materially affect the reported
results or net asset position of the Group should it later be determined that a different choice would be more
appropriate.
Below are the critical accounting estimates and judgements.
Provisions for Impairment
In determining expected credit loss (ECL), management is required to exercise judgement in defining what is
considered to be a significant increase in credit risk and in making assumptions and estimates to incorporate
relevant information about past events, current conditions and forecasts of economic conditions.
Furthermore, judgement has been applied in determining the lifetime and point of initial recognition of revolving
facilities.
The calculated probability of default, loss given default and exposure at default are reviewed regularly
considering differences between loss estimates and actual loss experience. To date there has been limited
opportunities to make these comparisons. Therefore, these assumptions, including how they react to forward-
looking economic conditions remain subject to review and refinement.
5. Revenue
The Group recognises revenue from the following major sources:
Interest from loan receivables
Loan fee income
Interest income from term deposits and bank accounts
2020 2019
$ $
Interest income from loan receivables 306,932 588,998
Loan fee income 129,193 232,459
Interest income from term deposits and bank accounts 45 973
436,170 822,430
Sundr
y income 156,359 431,707
Total income 592,529 1,254,137
6. Other Operating Expenses
2020 2019
$ $
Audit fees - for the audit of the financial statements
28,750 109,250
Accountin
g, consulting and legal
111,695 196,546
NZX fees and list char
ges
24,445 29,882
Insurance expenses
24,825 24,079
Depreciation expenses
4,186 2,957
Notes to the Consolidated Financial Statements
Blackwell Global Holdings Limited
For the year ended 31 March 2020
20
Professional Services 7,636 8,250
Office Rent 135,417 -
Other operatin
g expenses
75,739 44,217
412,693 415,181
Refer to note 25 for more information about the office rent expense.
Audit fees comprises:
2020 2019
$ $
Audit of the current
year financial statements
28,750 69,000
Audit of the prior
year financial statements
- 40,250
28,750 109,250
7. Income Tax
This note provides an analysis of the Group's income tax expense, shows how the tax expense is affected by
non-assessable and non-deductible items.
Reconciliation of income tax expense to prima facie tax payable
2020 2019
$ $
Loss before income tax
(665,347) (584,930)
Current
year tax at the tax rate of 28% (186,297) (163,780)
Prior period tax adjustment - 15,973
(186,297) (147,807)
Tax effect of amounts which are not deductible in calculating taxable
income/
(loss):
Non-deductible expenses 35,298 1,013
Current tax losses not reco
gnised 150,999 151,267
Ad
justment to prior period tax losses not recognised - (4,472)
Income tax expense - -
In view of the current financial position of the Group, the directors have decided not to recognise the deferred
tax asset and accordingly no income tax has been recognised within equity in respect of the convertible note -
equity component or the contributed equity.
7.1 Tax Losses
2020 2019
$ $
Tax losses for which no deferred tax asset has been reco
gnised (1,819,324) (1,280,043)
Tax losses for which no deferred tax asset has been recognised (prior year
ad
justment) (51,736)
Potential tax benefit
@ 28% (523,897) (358,412)
Notes to the Consolidated Financial Statements
Blackwell Global Holdings Limited
For the year ended 31 March 2020
21
In view of the current financial position and loss position of the Group, the directors have decided not to
recognise any tax benefit on tax losses carried forward by the Group. The availability of tax losses carried
forward are subject to continuity of shareholders requirements being met in order to be utilised by the Group.
8. Imputation Credit Account
2020 2019
$ $
Imputation credits available for use in subsequent periods 137 -
9. Dividends Declared and Paid
No dividends were declared or paid relating to the Group results for the year ended 31 March 2020 (2019: $
Nil).
10. Earnings Per Share
2020 2019
Basic earnin
gs/(loss) per share (cents): (0.15) (0.13)
Diluted earnin
gs/(loss) per share (cents): (0.15) (0.13)
The losses and weighted average number of ordinary shares used in the calculation of loss per share are
as follows:
2020 2019
Loss for the period attributable to owners of the parent compan
y ($) (665,347) (584,930)
Number of ordinary shares used in the calculation of basic and diluted
earnin
gs per share 450,446,926 439,830,488
At 31 March 2020, there were no financial instruments or rights held by any shareholders that were considered
to be dilutive (2019: Nil). Accordingly, basic and diluted earnings per share are identical for the accounting
periods being reported on.
The Group presents basic and diluted earnings per share (EPS) information for its ordinary shares. Basic EPS
is calculated by dividing the profit or loss attributable to ordinary shareholders by the weighted average number
of ordinary shares on issue throughout the year. Diluted earnings per share is calculated by adjusting the profit
or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding,
adjusted for the effects of all dilutive potential ordinary shares. There were no financial instruments considered
to be dilutive as at 31 March 2020.
11. Net Tangible Assets per Share
2020 2019
Net tan
gible assets ($) 690,233 974,666
Issued shares at balance date 502,330,488 439,830,488
Net tan
gible assets per share (cents) 0.14 0.22
Notes to the Consolidated Financial Statements
Blackwell Global Holdings Limited
For the year ended 31 March 2020
22
12. Prepayments and Other Receivables
2020 2019
$ $
Prepa
yments 91,757 101,624
Other receivables 137 276
91,894 101,899
Current 16,894 26,399
Non-current 75,000 75,500
91,894 101,899
13. Property, Plant and Equipment
2020 2019
$ $
Cost
Balance at 1 April
7,738 2,669
Additions
10,532 5,069
Balance at 31 March
18,270 7,738
Accumulated depreciation
Balance at 1 April
(3,958) (1,001)
Depreciation
(4,186) (2,957)
Balance at 31 March
(8,144) (3,958)
Carrying value 10,126 3,780
14. Trade and Other Payables
2020 2019
$ $
Trade pa
yables 18,902 45,569
GST arrears - 18,076
Non-residents withholdin
g tax 64,377 39,938
83,279 103,583
15. Accruals, Provisions and Other Liabilities
2020 2019
$ $
Accrued expenses 105,000 71,855
Emplo
yee benefits 52,310 31,910
Deferred income 13,591 -
170,901 103,765
Notes to the Consolidated Financial Statements
Blackwell Global Holdings Limited
For the year ended 31 March 2020
23
16. Loan receivables
2020 2019
$ $
Short term loan receivables 1,560,301 5,399,070
Accrued interest 5,684 10,722
Deferred revenue
(17,083) (32,617)
1,548,901 5,377,175
16.1 Credit Risk Grading
The Group's receivables are monitored by regular assessment of their credit risk grade based on an objective
review of defined risk characteristics. The portfolio risk is regularly refreshed based on current information.
The loan receivables consist mainly of lending for:
Residential construction
Land purchase
Refinancing
Loans are individually risk graded based on loan status, financial information, security and debt servicing ability.
Exposures in the portfolio are credit risk graded by an internal risk grading mechanism and is part of the loan
application and approval process. All loans are secured on the assets and the portfolio LVR is 58.61%.
2020 2019
$ $
Neither at least 90 da
ys past due nor impaired 1,548,901 5,377,175
At least 90 da
ys past due - -
Individuall
y impaired - -
1,548,901 5,377,175
Expected credit loss allowance - -
1,548,901 5,377,175
Loan receivables by expected credit loss (ECL) allowance:
Stage 1 Stage 2 Stage 3
$ $ $
As at 1 April 2019
5,377,175 - -
Transfer from Stage 1 to Stage 2
- - -
Transfer from Stage 2 to Stage 1
- - -
Transfer to Stage 3
- - -
Transfer from Stage 3
- - -
Net further lending/(repayments)
(20,721) - -
Asset derecognised (including final repayments)
(5,714,882) - -
New financial assets originated
1,907,329 - -
As at 31 March 2020
1,548,901 - -
Notes to the Consolidated Financial Statements
Blackwell Global Holdings Limited
For the year ended 31 March 2020
24
Residential
construction
Land purchase,
refinancing and
other matters
Total
2020 2019 2020 2019 2020 2019
$ $ $ $ $ $
The concentration of credit risk
b
y loan type
99,471
1,298,948
1,449,430
4,078,227
1,548,901
5,377,175
1,548,901 5,377,175
17. Borrowings
2020 2019
$ $
Current borrowings
Short term liabilit
y for special purpose lending - 2,900,000
Bonds 44,178 46,644
Convertible notes - 9,260
44,178 2,955,904
Non-current borrowings
Bonds 2,467,946 2,423,783
Convertible notes - 434,208
2,467,946 2,857,991
17.1 Bonds
The Group issued $2,000,000 bonds on 18 December 2017 at a fixed interest rate of 6%. The bonds were to
mature three years from the issue date at their nominal value of $2,000,000.
The Group issued a further $500,000 bonds to Blackwell Global Group Limited on 27 April 2018 at a fixed
interest rate of 6%. The interest is payable six monthly. The bonds were to mature three years from the issue
date at their nominal value of $500,000.
The bonds are secured by a first ranking general security deed over all the present and after acquired property
of Blackwell Global Holdings Limited.
The contributed capital component of the bonds represents the difference in fair value between the current fixed
interest rate and the estimated interest rate of a similar bond issued to a third party.
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 has been adjusted accordingly on
the balance sheet.
No new bonds have been issued in the period. The value of the bonds recognised in the Consolidated Statement
of Financial Position is calculated as follows:
2020 2019
$ $
Balance at be
ginning of year 2,470,427 1,942,536
Value of bonds issued on 27 April 2018 - 500,000
Contributed capital on bonds issued -
(25,503)
Liabilit
y component carried forward 2,470,427 2,417,033
Interest accrual 147,534 147,781
Notes to the Consolidated Financial Statements
Blackwell Global Holdings Limited
For the year ended 31 March 2020
25
Pa
yment of interest on bonds (150,000) (135,000)
Amortisation of the premium on the bonds 44,163 40,613
Bond liabilit
y 2,512,124 2,470,427
Bond liability
- in current borrowin
gs 44,178 46,644
- in non-current borrowin
gs 2,467,946 2,423,783
2,512,124 2,470,427
17.2 Convertible Notes
The Group issued $500,000 convertible notes as part of the restructure on 22 June 2017 at a fixed interest rate
of 8% payable. The convertible notes were to mature three years from the issue date at their nominal value of
$500,000 or converted into shares at the holder’s option anytime from the time of issue to the maturity date at
the rate $0,008 per share per $1 of convertible notes held.
The convertible notes were unsecured.
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. $4,369 of costs relating to the issue of the shares were netted against the $500,000 share conversion,
resulting in increased capital of $495,631.
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.
No new convertible notes have been issued in the period. The value of the convertible notes recognised in the
Consolidated Statement of Financial Position is calculated as follows:
2020 2019
$ $
Balance at be
ginning of year 443,469 399,142
Equit
y component recognised in convertible notes reserve 114,716 -
Liabilit
y component carried forward 558,185 399,142
Interest accrual 30,137 39,905
Payment of interest on convertible notes (40,000) (35,000)
Convertible notes exercised
(500,000) -
Amortisation of premium 28,679 39,422
Amortisation of premium netted a
gainst interest expense (77,001) -
Convertible notes liability - 443,469
Convertible note liability
- in current borrowin
gs - 9,260
- in non-current borrowin
gs - 434,208
- 443,469
18. Cash and Cash Equivalents
2020 2019
$ $
Cash at bank and on hand 1,805,615 1,513,055
1,805,615 1,513,055
Notes to the Consolidated Financial Statements
Blackwell Global Holdings Limited
For the year ended 31 March 2020
26
The current floating interest rate on cash in bank accounts is 0.05% per annum. The current overdraft interest
rate on any unarranged overdraft is 22.5% per annum and is subject to change.
19. Net Debt
This section sets out an analysis of net debt for the periods presented for the Group.
2020 2019
$ $
Cash and cash equivalents 1,805,615 1,513,055
Borrowin
gs - current (44,178) (2,955,904)
Borrowin
gs - non-current (2,467,946) (2,857,991)
(706,508) (4,300,841)
20. Share Capital
No. of
Shares $
Ordinar
y shares at 1 April 2018 439,830,488 12,110,746
Ordinar
y shares issued during the year - -
Ordinar
y shares as at 01 April 2019 439,830,488 12,110,746
Ordinary Shares as at 1 April 2019 439,830,488 12,110,746
Ordinar
y shares issued during the year 62,500,000 495,631
Ordinar
y shares as at 31 March 2020 502,330,488 12,606,377
All Ordinary Shares are issued and fully paid, have an equal right to vote, to dividends and to any surplus on
winding up. The Group does not have a total number of authorised shares. The Board may issue shares or
other equity securities to any person in any number it thinks fit provided that while the Group is Listed, the issue
is made in accordance with the NZX listing rules.
21. Subsidiaries
Details of the Group’s subsidiaries at the end of the reporting period are as follows:
Proportion of interest
and voting power
held by the Group
Name of subsidiary Principal activity
2020 2019
Blackwell Global Finance Limited Diversified financial services 100% 100%
NZF Money Limited (in receivership) In receivership 100% 100%
Blackwell Global Funds Limited Special purpose vehicle established as
custodian for funding arrangement
100% 100%
The place of incorporation and operation for all subsidiaries is New Zealand. The balance date of all companies
in the Group is 31 March.
Notes to the Consolidated Financial Statements
Blackwell Global Holdings Limited
For the year ended 31 March 2020
27
22. Fair Values
The Group measures fair values using the following fair value hierarchy, which reflects the significance of the
inputs used in making the measurements.
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (that is, as prices), or indirectly (derived from prices).
Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
No assets or liabilities were recognised at fair value at balance date (2019: Nil).
As at 31 March 2020 and 31 March 2019, cash and cash equivalents, trade and other receivables (excluding
prepayments), trade and other payables and accruals approximated their fair value due to being short term.
23. Financial Instruments by Category
Financial Assets
At amortised
cost
Total
$ $
2020
Loan Receivables 1,548,901 1,548,901
Cash and cash equivalents 1,805,615 1,805,615
Other Receivables 16,894 16,894
3,371,411 3,371,411
At amortised
cost
Total
$ $
2019
Loan receivables 5,377,175 5,377,175
Cash and cash equivalents 1,513,055 1,513,055
Other receivables 276 276
6,890,506 6,890,506
Financial Liabilities
At amortised
cost
Total
$ $
2020
Trade and other pa
yables 83,279 87,834
Borrowin
gs 2,512,124 2,512,124
Accruals and other liabilities 105,000 105,000
2,700,403 2,704,958
2019
Trade and other pa
yables 103,583 103,583
Borrowin
gs 5,813,896 5,813,896
Accruals and other liabilities 71,855 71,855
5,989,334 5,989,334
Notes to the Consolidated Financial Statements
Blackwell Global Holdings Limited
For the year ended 31 March 2020
28
24. Risk Management
24.1 Market Risk
Market risk is the risk that market interest rate or foreign exchange rates will change and impact on the Group's
earnings due to either mismatches between repricing dates of interest-bearing assets and liabilities. Refer to
note 24.3 on interest rate risk for further details regarding interest rate risk. The Group has no exposure to
pricing or foreign exchange risks.
24.2 Liquidity Risk
Liquidity risk is the risk that the Group is unable to meet its payment obligations as they fall due. The timing
mismatch of cash flows and the related liquidity risk is inherent in all financial operations and is closely monitored
by the Group.
Management of liquidity risk is designed to ensure that the Group has the ability to generate or obtain sufficient
cash in a timely manner and at a reasonable price to meet its financial commitments on a daily basis.
The objective of the Group is to derive the most appropriate strategy in terms of the mix of assets and liabilities
given its expectations of future cash flows, liquidity constraints and capital adequacy.
Although the Group is not bound by any restrictive lending limit restrictions, current strategies include minimum
loan no less than $50,000 and maximum lending limit of $2,000,000. All loans require sign off by the board
members.
The Group holds the following financial assets for the purpose of managing liquidity risk:
Cash and cash equivalents $1,805,615 (2019: $1,513,055).
Liquidity table
The table below analyses the Group's financial liabilities into relevant maturity groupings based on the remaining
period at the consolidated statement of financial position date to the contractual maturity date. The amounts are
disclosed in the table are the contractual undiscounted cash flows.
2020
0-6
Months
7-12
Months
1-2 Years 2-5 Years 5+ Years Total
$ $ $ $ $ $
Borrowings - 44,178
2,000,000
500,000 -
2,544,178
Trade and other payables 83,279 - - - - 83,279
Accruals, provisions and
other liabilities
170,901 - - - -
170,901
254,180 44,178 2,000,000 500,000 - 2,798,357
2019
0-6
Months
7-12
Months
1-2 Years 2-5 Years 5+ Years Total
$ $ $ $ $ $
Borrowings 2,980,000 95,000 2,670,000 515,000 - 6,260,000
Trade and other payables 103,083 - - - - 103,083
Accruals, provisions and
other liabilities 71,855 - - - - 71,855
3,154,938 95,000 2,670,000 515,000 - 6,434,938
Notes to the Consolidated Financial Statements
Blackwell Global Holdings Limited
For the year ended 31 March 2020
29
24.3 Interest Rate Risk
Currently the Group has only one interest bearing cash and cash equivalents bank account. This relates to the
bank account with floating interest rates. The impact on loss after tax and equity would be as follows if the
interest rates deviated by 1% from the current interest rates:
2020 2019
$ $
Cash and cash equivalents 1,805,615 1,513,055
Rate
(+/-1%) 18,057/(18,057) 15,131/(15,131)
All other interest-bearing financial assets and liabilities are at fixed interest rates.
24.4 Credit Risk
Credit risk is the risk that a borrower will default on any type of debt by failing to make payments which it is
obligated to make. The risk is primarily that of the lender and includes loss of principal and interest, disruption
to cash flows and increased collection costs.
The Group's exposure to credit risk is governed by a credit risk policy approved by the Board by special
resolution on 22 June 2017. This policy sets out the nature of risk which may be taken and aggregate risk limits,
and the Group must conform to this.
Credit risk is managed to achieve sustainable risk-reward performance whilst maintaining exposures within
acceptable risk parameters. This is achieved through the combination of governance, policies, systems and
controls, underpinned by commercial judgement as described below.
Formal credit risk management strategies are in place to oversee and manage the Group's credit risk exposures
typically on six monthly basis to ensure consistency with the Group's credit policies to manage all aspects of
credit risk. The credit risk management strategies ensure that:
• Credit origination meets agreed levels of credit quality at point of approval.
• Maximum total exposure to any one debtor is actively managed.
• Changes to credit risk are actively monitored with regular credit reviews.
The loan recommendation aims to cover the following in order to achieve the overall objective to evaluate the
firm's or individual's financial capabilities and determine if they are able to settle their loan obligations with the
Group in the long run:
• Background
• Purpose
• Ownership and management
• Security
• Market information
• Financial information
• Value of security and guarantee(s)
• Cashflow and financial strength of the borrower, owner and guarantor(s).
2020 2019
$ $
Loans receivable
Secured b
y mortgage or caveat over property 1,548,901 5,377,175
1,548,901 5,377,175
Principal and interest loans are secured loans where the debtor repays capital and interest on a regular basis.
Current year loans are ranging from $102,500 to $915,000 varying from 4-month to 12-month terms. Generally,
these loans are to finance transactions relating to property, refinancing or personal matters. These are generally
secured loans over property.
Notes to the Consolidated Financial Statements
Blackwell Global Holdings Limited
For the year ended 31 March 2020
30
In some instances, interest may be capitalised or partially capitalised during the term of the loan and the debtor
repays the full capital plus any capitalised interest at the end of the loan. Loans may be rolled over or extended
at the end of their initial term if approved by the board.
2020 2019
$ $
Capitalisin
g interest loans
Balance of loans with full/partial capitalisin
g interest 539,250 2,498,509
Accrued interest capitalised 3,311 64,724
542,561 2,563,233
Cash Management
Any cash on hand is held by the ASB Bank which is a registered bank and has an AA- rating with Standard and
Poor's.
Loan to value ratio (LVR) range
Loan to value ratios are reviewed prior to any lending approvals and are subject to the approved credit policy.
The maximum LVR varies by region:
Location LVR
Metropolitan - Auckland 58%
Metropolitan - Other 62%
Re
gional 59%
The Board approve any lending not within the credit policy. In 2020 there was no lending outside of the scope
of the credit policy (2019: Nil).
25. Related Parties
The Group is controlled by Blackwell Global Group Limited (incorporated in the Cayman Islands) which owns
62.01% of the Company’s shares. The Group’s ultimate controlling party is Mr Kaw Sing Chai, who also owns
11.12% of the Company’s shares in his own name. The remaining 26.87% of the Company’s shares are widely
held.
Related party transactions
The following expenses were paid by Blackwell Global Investments Limited on behalf of the Group. It has been
agreed that these costs will not be recovered from the Group. The benefit of these transactions is recognised
in sundry income (note 5) with the corresponding expenses included in operating expenses.
2020 2019
$ $
Asset purchase
- 5,069
Consultants
- 48,130
Cleanin
g and Laundry 1,628 -
Electricity
3,690 -
Emplo
yee expenses - 378,081
Legal fees
- 427
Printing and Stationery
1,240 -
Telephone, Tolls and Internet
13,915 -
Office Rent
135,417 -
155,891 431,707
Notes to the Consolidated Financial Statements
Blackwell Global Holdings Limited
For the year ended 31 March 2020
31
Blackwell Global Investments Limited also provided the Group with premises and paid the premises related
costs at no charge to the Group. It has been agreed that these costs will not be recovered from the Group. The
following are the costs incurred by Blackwell Global Investments Limited from which the Group received benefit
that were not included in the financial statements.
2020 2019
$ $
Rent
- 134,240
- 134,240
Other related party transactions
2020 2019
$ $
Invoices issued by: Related party
Boston Kiwi Corporation Crai
g Alexander 4,485 16,773
Anthon
y Harper Ewe Leong Lim 6,982 20,864
Anthony Harper, where director Ewe Leong Lim is a partner, provided legal services to the Group. Boston Kiwi
Corporation, where director Craig Alexander is a partner, provided consulting services to the Group.
25.1 Remuneration of Directors
2020 2019
$ $
Sean Jo
yce 86,250 86,250
Crai
g Alexander 51,750 51,750
Sa
y Chan Law (James) 51,750 51,750
Ewe Leon
g Lim 51,750 51,750
Kaw Sin
g Chai (Michael) 45,000 39,750
286,500 281,250
All directors are common to all the subsidiary companies in the Group.
25.2 Key Management Personnel Remuneration
Key management personnel include directors and senior management. The total remuneration and benefits
paid or payable to key management is show below.
2020 2019
$ $
Salaries and fees 275,400 530,085
Number of personnel remunerated 2 4
Last year, remunerated key management personnel included remuneration to a derivatives team of 2 employed
by Blackwell Global Investments Limited, on-charged to Blackwell Global Holdings Limited. See note 25.
The Chief Executive was paid a base salary of $180,000 per annum for the year ended 31 March 2020 (2019:
$180,000). There is currently no long, or short-term incentive scheme. The Chief Executive has certain
entitlements for the reimbursement of expenses. These are mostly in relation to travel expenses and home
office costs.
Notes to the Consolidated Financial Statements
Blackwell Global Holdings Limited
For the year ended 31 March 2020
32
25.3 Directors Shareholdings
Nu
mber of Shares
Directo
rHolder(s)
2020 2019
Kaw Sin
g Chai (Michael)Kaw Sing Chai (Michael)55,871,667 55,871,667
Say Chan Law (James) Say Chan Law (James)27,826,000 27,826,000
All directors are common to all the subsidiary companies in the Group.
As at 31 March 2020, Kaw Sing Chai also has 100% shareholding in Blackwell Global Group Limited (2019:
100%) which holds 311,501,199 shares in the Group.
During 2019 and 2018, bonds were issued to Blackwell Global Group Limited base d in Singapore in which Kaw
Sing Chai has shareholding interests. Refer to note 17 for further details.
In 2017, convertible notes were issued to Blackwell Global Group Limited based in Singapore in which Kaw
Sing Chai has shareholding interests. Refer to note 17 for further details.
25.4 Interested Transactions
During the year legal services were obtained from Anthony Harper where Ewe Leong Lim is a partner totalling
$6,982 (2019: $20,864).
During the year consulting services were received from Boston Kiwi Corporation where Craig
Alexander is a partner totalling $4,485 (2019: 16,773).
Directors' Remuneration
Remuneration details of Directors are provided above.
Indemnification and Insurance of Officers and Directors
The Group indemnifies Directors and Executive Officers of the Group against all liabilities which arise out of the
performance of their normal duties as Directors or Executive Officers, unless the liability relates to conduct
involving lack of good faith. To manage this risk, the Group has indemnity insurance. The total cost of this
insurance expensed in the Group during the financial year was $19,818 (2019: $18,975).
Share Transactions
No directors acquired or disposed of any Ordinary Shares in the Group during the year (2019: Nil). However,
Blackwell Global Group Limited, in which Kaw Sing Chai has shareholding interests, exercised its right to
convert convertible note issued into Ordinary Shares. Refer to note 17 for further details.
Directors' Loans
There were no loans made by the Group to the Directors or by the Directors to the Group during the year.
Use of Group Information
The Board received no notices during the year from Directors requesting to use Group information received in
their capacity as Directors which would not otherwise have been available to them.
26. Going Concern
The Group has incurred a net loss for the year of $665,347 (2019: loss of $584,930) and as of 31 March 2020
has positive equity of $690,233. The Company is reliant upon the continued support of its lenders including
shareholder advances. The going concern basis assumes continued support of these parties in following
financial periods. The directors in determining that the financial statements be prepared on a going concern
basis have taken into account events subsequent to balance date.
Notes to the Consolidated Financial Statements
Blackwell Global Holdings Limited
For the year ended 31 March 2020
33
27. Segment Reporting
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.
28. Capital Management
The Group's objectives when managing capital are to safeguard the Group's ability to continue as a going
concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an
optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust issue of new shares or borrowings to
reduce debt.
29. Lease Commitments
As at 31 March 2020, the Group had no material lease commitments (2019: Nil).
30. Capital Commitments
There were no capital commitments at 31 March 2020 (2019: Nil).
The Group had the following drawdown commitments to extend credit to borrowers:
2020 2019
$ $
Drawdown commitments to extend credit to borrowers 177,500 715,119
31. Contingent Assets and Liabilities
There are no material contingencies as at 31 March 2020 (2019: Nil).
32. Subsequent Events
There have been no significant events after balance date.
33. Approval of Financial Statements
The financial statements were approved by the directors and authorised for issue on 24 August 2020.
Additional Information
Blackwell Global Holdings Limited
For the year ended 31 March 2020
34
The names of the Directors of the Group in office at the date of this Report are:
Directors
Craig Irving Alexander
Kaw Sing Chai (Michael)
Kim Chan Steve Chua (Alternate)
Sean Robert Joyce (Chair)
Say Chan Law (James)
Ewe Leong Lim
Auditors
Fees accrued to William Buck in the 2020 year are $34,500. The accounts include reversal of $5,750
PricewaterhouseCoopers accrual in relation to the audit of the previous financial year, that is no longer relevant.
Employees
The number of employees not being directors, within the Group receiving annual remuneration and benefits
above $100,000 are as shown in the following table.
2020 2019
$180,000 - $189,999 1 1
Donations
There were no donations paid during the year (2019: $Nil).
Shareholders
As at 01 April 2020 there were 432 shareholders.
Share Issues
During the year ended 31 March 2020, 62,500,000 ordinary shares were issued (2019: Nil).
Shareholder Details
The ordinary shares of Blackwell Global Holdings Limited are listed on the NZX Main Board market operated
by NZX Limited.
Additional Information
Blackwell Global Holdings Limited
For the year ended 31 March 2020
35
Largest Shareholders
Shareholder data in Additional Information is as at 30 June 2020, unless otherwise stated.
Name
Fully Paid Ordinary
Shares Number Held % Held
Blackwell Global Group Limited 311,501,199 62.01%
Chai Kaw Sin
g (Michael) 55,871,667 11.12%
Sa
y Chan Law (James) 27,826,000 5.54%
Pat Redpath O`Connor & Kay O'Connor & Robert Norman
Burnes 17,010,002 3.39%
New Zealand Depositor
y Nominee 11,548,996 2.30%
Lynton Ross Campbell & Dennis Michale Graham & Mark
Hume Thonton 9,095,514 1.81%
Barbara Charlotte Thornton & SW Trust Services Limited 7,834,488 1.56%
Minhua Chen 4,195,528 0.84%
PKB Trustees Limited 4,001,596 0.80%
Fiona Patrica Lyons & Kim Nigel Lyons & Wyndham Trustees
Limited 3,001,915 0.60%
David Burton Gibson 2,969,040 0.59%
W Custodians Limited 2,642,622 0.53%
Bin Zhen
g & Robert Bruce Alderton Costain 2,612,142 0.52%
Best Investments Limited 2,451,664 0.49%
Paul Richard Huljich & Mark Richard Huljich & Simon Paul
Hul
jich 2,451,664 0.49%
Walter Mick Geor
ge Yovich & Jeanette Julia Yovich 2,193,409 0.44%
New Zealand Central Securities Depositor
y Limited 2,142,710 0.43%
Ted Burak 1,890,000 0.38%
Land Securities Limited 1,689,752 0.34%
Shiwei Kwon
g 1,530,684 0.30%
Distribution of Equity Securities
Number of Security Holders Number of Securities
Size of Holdin
g Number % Number %
1-1,000 26 6.07% 18,836 0.00%
1,001-5,000 127 29.67% 443,409 0.09%
5,001-10,000 65 15.19% 546,926 0.11%
10,001-50,000 101 23.60% 2,314,916 0.46%
50,001-100,000 31 7.24% 2,359,376 0.47%
100,001 or more 78 18.22% 496,647,025 98.87%
428 100.00% 502,330,488 100.00%
Additional Information
Blackwell Global Holdings Limited
For the year ended 31 March 2020
36
Substantial Product Holders
Pursuant to Section 293 of the Financial Markets Conduct Act 2013, details of substantial product holders and
their total relevant interests as at 31 March 2020 is as follows:
Number of Shares
Blackwell Global Group Limited 311,501,199
Chai Kaw Sin
g (Michael) 55,871,667
Sa
y Chan Law (James) 27,826,000
The total number of Shares on issue as at 31 March 2020 was 502,330,488 (2019: 439,830,488).
Shareholder Enquiries
Shareholders should send changes of address to Link Market Services Limited at the address noted in the
Company Directory. Notification must be in writing. Questions relating to shareholdings should also be
addressed to Link Market Services Limited. For information about the Company please contact the Company
at the Registered Office by sending an e-mail to info@bgholdings.co.nz or visit the website
www.bgholdings.co.nz.
Announcement and Reporting to Shareholders
The Company has established an e-mail list of Shareholders that want to receive announcements and reports
made by Blackwell Global Holdings Limited to the NZX. Announcements and reports are e-mailed to
Shareholders who wish to receive them shortly after they are released. This will include the Annual Meeting
addresses, Annual Reports and Interim Reports. If you want to be added to this listing, please e-mail
registry@bghholdings.co.nz and advise us of your preferred e-mail address. Your e-mail details will be kept
confidential.
Waivers
During the course of the financial year ended 31 March 2020 the Company obtained no waivers from NZX
Limited.
COMPANY DIRECTORY
Blackwell Global Holdings Limited
For the year ended 31 March 2020
37
As at 31 March 2020
Independent Directors
Share Re
gistrar
Sean Jo
yce
Link Market Services Limited
Crai
g Alexander
Deloitte Centre, 80 Queen Street, Auckland
Tel: 09 375 5998
Non-executive Directors
Kaw Sing Chai
Solicitors
Say Chan Law
Anthon
y Harper
Ewe Leong Lim
Chorus House, 66 W
yndham Street
Kim Chan Steve Chua
Auckland
Re
gistered Office
Bankers
Level 17, 191 Queen Street, Auckland
ASB Bank Limited
Tel: 0800 379 9090
ASB, North Wharf, 12 Jellicoe Street, Auckland
Compan
y Number
Auditor
1474151
William Buck
Level 4
Incorporated
21 Queen Street
22 Januar
y 2004 Auckland 1010
Shares Issued
502,330,488 Ordinar
y
Blackwell Global Holdings Limited
Independent auditor’s report to the Shareholders
Report on the Audit of the Consolidated Financial
Statements
Opinion
We have audited the consolidated financial statements of Blackwell Global Holdings
Limited (the Group), which comprise the consolidated statement of financial position as at
31 March 2020, and the consolidated statement of comprehensive income, consolidated
statement of changes in equity and consolidated statement of cash flows for the year then
ended, and notes to the consolidated financial statements, including a summary of
significant accounting policies.
In our opinion, the accompanying consolidated financial statements give a true and fair
view of the financial position of the Group as at 31 March 2020, and of its financial
performance and its cash flows for the year then ended in accordance with New Zealand
equivalents to International Financial Reporting Standards (NZ IFRS).
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (New
Zealand) (ISAs (NZ)). Our responsibilities under those standards are further described in
the Auditor’s Responsibilities for the Audit of the Financial Statements section of our
report. We are independent of the Group in accordance with Professional and Ethical
Standard 1 (Revised) Code of Ethics for Assurance Practitioners issued by the New
Zealand Auditing and Assurance Standards Board and the International Ethics Standards
Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code), and
we have fulfilled our other ethical responsibilities in accordance with these requirements
and the IESBA Code. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Other than in our capacity as auditor we have no relationship with, or interests in, the
Group.
Material Uncertainty Related to Going Concern
We draw attention to Note 26 in the financial statements, which indicates that the Group
incurred a net loss of $665,347 during the year ended 31 March 2020, and as of that date,
has equity of $690,233. The Group is reliant on ongoing support from its key shareholder,
which has been provided. As stated in Note 26, these events or conditions, along with
other matters as set forth in Note 26, indicate that a material uncertainty exists that may
cast significant doubt on the Group’s ability to continue as a going concern. Our opinion is
not modified in respect of this matter.
39
Information Other than the Financial Statements and Auditor’s Report Thereon
The Directors are responsible for the other information. The other information comprises the Chairman’s
Report, Corporate Governance Statement, Additional Information, and Company Directory, but does not
include the financial statements and our auditor’s report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not
express any form of audit opinion or assurance conclusion thereo
In connection with our audit of the consolidated financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial statements of the current period. These matters were addressed in the context of our
audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
Loan Impairment
Area of focus How our audit addressed it
The Group’s loan receivables $1,548,901 as
detailed in Note 16 to the financial statements
form a significant asset for the Group. Given
the risk profile of such loans, these represent a
key focus of audit testing.
The Group has not recorded any bad debt
expense for the year and has no provision for
doubtful debts at 31 March 2020. The Group’s
assessment of this provision is a significant
judgement in preparation of the financial
statements and accordingly represents an area
of audit focus.
Our audit procedures included the following:
- Reviewing all loan files to ensure all
appropriate loan documentation has
been prepared and executed;
- Reviewing the level of security over the
loans and ensuring such security is
correctly registered;
- Reviewing the repayment profile of each
loan and assessing any loans which
have not maintained their contracted
level of repayments;
- Reviewing the likely doubtful debt
position and assessing this against the
level of provision applied.
Directors’ Responsibilities
40
The directors are responsible on behalf of the Group for the preparation of consolidated financial
statements that give a true and fair view in accordance with New Zealand equivalents to International
Financial Reporting Standards, and for such internal control as the directors determine is necessary to
enable the preparation of financial statements that are free from material misstatement, whether due to
fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs (NZ) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.
A further description of our responsibilities for the audit of these financial statements is located at the
External Reporting Board (XRB) website at:
https://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/
This description forms part of our independent auditor’s report.
The engagement director on the audit resulting in this independent auditor’s report is Michael Wood.
Restriction on Distribution and Use
This report is made solely to the Group’s shareholders, as a body. Our audit work has been undertaken so
that we might state to the Group’s shareholders those matters which we are required to state to them in an
auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Group and the Group’s shareholders, as a body, for our
audit work, for this report or for the opinions we have formed.
William Buck Audit (NZ) Limited
Auckland
25 August 2020
---
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 (-47.0%)
Total Revenue $593 (-52.8%)
Net profit/(loss) from
continuing operations
($665) (-13.7%)
Total net profit/(loss) ($665) (-13.7%)
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
$0.0014 $0.0022
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 25/08/2020
Audited financial statements accompany this announcement.
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
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