Burger Fuel Group Ltd Half Year Results – 30 September 2020

Results for announcement to the market
Name of issuer Burger Fuel Group Limited
Reporting Period 6 months to 30 September 2020
Previous Reporting Period 6 months to 30 September 2019
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$9,707 (13.8%)
Total Revenue $9,707 (13.8%)
Net profit/(loss) from continuing
operations
$359 (34.5%)
Total net profit/(loss) $359 (34.5%)
Interim Dividend
Amount per Quoted Equity Security Not Applicable
Imputed amount per Quoted Equity
Security
Not Applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable period
Net tangible assets per Quoted
Equity Security
$0.16 $0.15
A brief explanation of any of the
figures above necessary to enable
the figures to be understood
Group Operating Revenue decreased on the same period last year mainly due
the Covid-19 pandemic. Group Net Profit After Tax was also impacted by
additional costs establishing our new brands (Winner Winner and Shake Out),
additional legal costs for the USA settlement transaction, the partial impairment
of goodwill on the company owned BurgerFuel Takapuna store. These costs
were however largely offset with rent relief provided by landlords and the
Government wage subsidy received.


Authority for this announcement
Name of person authorised to make
this announcement
Mark Piet
Contact person for this
announcement
Mark Piet
Contact phone number 021 453 333
Contact email address Mark.Piet@Burgerfuel.com
Date of release through MAP 27/11/2020

---

2
Burger Fuel Group Limited
Consolidated Interim Financial Statements
For the Period Ended 30 September 2020



Contents Page


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

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

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

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

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

Notes to the Consolidated Financial Statements .....................11-16

3

Burger Fuel Group Limited
Chairman and Chief Executive’s Review
For the period ended 30 September 2020

Burger Fuel Group Ltd Half Year Results for the 6 months ended 30 September 2020

OVERVIEW

The Directors of Burger Fuel Group Limited (BFG) present the unaudited results for the 6 months to 30 September 2020.

Net Profit after tax for the period was $358,901 compared to $548,092 in the same period last year. This represents a decline
of (34.5%).

Group Operating Revenue (excluding IFRS 16 and the wage subsidy income) decreased by (22.7%) on the same period last
year to $8.2M. This is mainly due to reduced sales and reduced royalties due to the Covid-19 pandemic which includes
support provided to our MENA Licensees who have been heavily impacted by Covid-19.

The Group has no debt and as at 30 September 2020 had cash reserves of $6.8M.

BFG RESULTS (UNAUDITED) FOR THE PERIOD 1 APRIL TO 30 SEPTEMBER 2020

30 September 2020 30 September 2019
$000 $000

Operating Revenue * 8,151 10,543
Interest Income – IFRS 16 non-occupied leases 688 719
Covid-19 Government wage subsidy 868 -
Total Income 9,707 11,262

Operating Expenses ** (7,944) (9,342)
Depreciation Expense – IFRS 16 occupied leases
(332) (305)
Interest Expense - IFRS 16 non-occupied leases
(688) (719)
Interest Expense - IFRS 16 occupied leases
(235) (218)
Total Expenses
(9,199) (10,584)




Net Profit (Loss) Before Tax 508 678
Net Profit (Loss) After Tax *** 359 548


* Revenue includes; Operating revenue and interest income.
** Expenses include; Operating expenses, depreciation, amortisation and interest expenses.

GROUP PERFORMANCE

Total system sales were $40.9m, for the period representing a decrease of (18.64%) over the same period last year. The
decrease is mainly due to the Covid-19 restrictions, not reopening the USA store after the March 2020 lockdown, and the
closure of the Iraq store.

Total store numbers decreased from 79 to 78 as at 30 September 2020. The UAE region did however have several dark
kitchens (delivery only kitchens) operating instead of bricks and mortar stores. The new brands Winner Winner and Shake
Out accounted for 6% of the total systems sales and international sales accounted for 14.4%.

Group Net Profit After Tax was down $189K (34.5%) on the same period last year. This was partly due to the additional
costs associated with establishing our new brands (Winner Winner and Shake Out), additional legal costs for the USA
settlement transaction, the partial impairment of goodwill on the company owned BurgerFuel Takapuna store, and the
reduced revenue due to Covid-19. These costs were however largely offset with rent relief provided by landlords and the
Government wage subsidy received.

4




OPERATING RESULTS

BurgerFuel New Zealand

Total sales for the period were down (15.6%) on the previous year. This was due to the nationwide lockdown in April and
May and the Auckland Level 3 restrictions in August. Due to Covid-19 induced social changes such as working from home,
sales have been redistributed from the city centres to the suburban stores and we expect this trend to continue for the
foreseeable future. A new BurgerFuel store opened at Point Chevalier, Auckland, in May 2020.

BurgerFuel New Zealand tested home delivery during the Alert Level 3 restrictions but maintained its position of not using
aggregated delivery services such as Uber Eats. The BurgerFuel store network is mostly made up of suburban locations and
their sales performance has been very good during Alert Levels 1 and 2. BurgerFuel in New Zealand is now on a recruitment
campaign for franchisees in the regional areas that it doesn’t currently serve and over time we see opportunity for modest
additional BurgerFuel outlet expansion.

BurgerFuel Middle East (ME)

The Middle East business has been hit hard by the Covid-19 crisis. The total sales comparison for the first half of this year
records a decrease of (40.3%) due also to the closure of multiple retail stores across each of the countries in which we
operate. The UAE has been facing a challenging trading environment for many years and the effects of high rents and an
over-supply of retail space was further exacerbated by Covid-19 related lockdowns and restrictions. The future viability of
high rent locations motivated our UAE Licensee to make some difficult decisions and close some of its retail locations and
open some hidden (also known as ghost or dark) kitchens that provide home delivery services only.

Saudi Arabia faced Covid-19 restrictions and the government tripled its new GST tax from 5% to 15% as it prepares for an
economy that is less dependent on oil. The BurgerFuel store locations in Saudi are good but the overall trading environment
will be difficult for some time yet.

We expect conditions in the Middle East to remain challenging for the foreseeable future.

BurgerFuel USA

The BurgerFuel store in Indianapolis was closed due to Covid-19 restrictions. It did not re-open within this financial year
and the decision to permanently close the store and exit the USA market was implemented in November.

Winner Winner & Shake Out New Zealand

During this 6-month financial period Shake Out opened two more stores and permanently closed the Browns Bay location
when the Covid-19 Alert Level 4 restrictions began. The new locations in Palmerston North and Hamilton are trading
reasonably. The company owned Smales Farm store in Takapuna is in an office complex and as such it has faced difficult
trading conditions due to the Covid-19 working from home requirements. Shake Out has been a “contactless & cashless”
brand since its inception, so the Covid-19 restrictions were relatively easy to implement.

The Winner Winner brand now has 3 stores and has had a year of large peaks and troughs since then. Of our three brands,
Winner Winner has a larger dine-in focus, so the Covid-19 Alert Level 2 & 3 physical distancing requirements had a
significant impact on the trading performance of the stores. All Winner Winner stores have been performing reasonably well
at Alert Level 1. It is envisaged that Winner Winner will eventually deliver sustainable growth for the Group in the future,
but once again growth remains subdued in the current Covid-19 environment.

5


GROUP OUTLOOK

At this point the ongoing effects of Covid-19 are still unknown however with the Group’s healthy cash position, lower
operating costs and no debt we are well positioned for moderate growth of all brands in New Zealand.

In summary, BFG is in a sound position with its finances, talent, intellectual property and future opportunities well in place.
We believe that the cautious opening of new locations in New Zealand is well within the capabilities and financial position
of the Group, however franchise opportunities remain limited for now.

We would like to thank all shareholders, staff, franchisees, suppliers and of course our valued customers for their support.

Best regards


Peter Brook

Josef Roberts
Chairman Group CEO

6
Burger Fuel Group Limited
Consolidated Statement of Comprehensive Income
For the period ended 30 September 2020




Unaudited Unaudited Audited

30 Sep
2020

30 Sep
2019
31 Mar
2020


6 months 6 months
Full Year


$’000

$’000
$’000






Revenue
8,128 10,505 20,346
Covid-19 Government wage subsidy
868 - -
Operating Expenses
(7,651) (9,008) (17,974)


Profit before interest, taxation, depreciation and
amortisation 1,345 1,497 2,372


Depreciation on Property, Plant and Equipment
222 262 546
Depreciation on Right of Use Assets
332 305 630
Amortisation
71 72 143

625 639 1,319


Profit / (Loss) before Interest and Taxation
720 858 1,053


Interest Income
23 38 113
Interest Income leases non-occupied
688 719 1,410
Interest Expense
- - -
Interest Expense leases occupied
(235) (218) (443)
Interest Expense leases non-occupied
(688) (719) (1,410)

(212) (180) (330)
Profit / (Loss) before Taxation
508 678 723


Income Tax Expense
149 130 218


Net Profit / (Loss) attributable to shareholders
359 548 505


Other comprehensive income:

Items that may be reclassified subsequently to profit
or loss:
Movement in Foreign Currency Translation Reserve
60 (113) (117)


Total comprehensive income
419 435 388


Basic Net Earnings per Share (cents)
0.67 1.02 0.94
Diluted Earnings per Share (cents)
0.67 1.02 0.94

7
Burger Fuel Group Limited
Consolidated Statement of Financial Position
As at 30 September 2020


Unaudited Unaudited Audited


30 Sep
2020

30 Sep
2019
31 Mar
2020
6 months 6 months Full Year


$’000

$’000
$’000
Shareholders’ Equity

Contributed equity
13,595 13,595 13,595
Retained earnings
(1,621) (1,993) (1,980)
Other reserves
(381) (437) (441)

11,593 11,165 11,174
Current assets

Cash and cash equivalents
6,770 5,196 5,570
Trade and other receivables
3,092 3,277 3,191
Income tax receivable
- - 184
Lease Receivable non-occupied
1,518 1,445 1,518
Inventories
509 597 565
Loans
174 297 174

12,063 10,812 11,202
Non-current assets

Property, plant and equipment
2,429 2,426 2,462
Right of use asset - leases
7,579 6,906 7,828
Lease receivable non-occupied
20,497 21,590 21,239
Deferred tax asset
694 716 689
Loans
123 - 134
Intangible assets
2,256 2,484 2,421

33,578 34,122 34,773
Total assets
45,641 44,934 45,975

Current liabilities

Trade and other payables
1,478 1,212 1,470
Contract Liability
329 239 413
Lease Liability
432 420 424
Lease Liability non-occupied
1,518 1,445 1,518
Income tax payable
172 32 -
Provisions
465 424 436

4,394 3,772 4,261
Non-current liabilities

Contract Liability
1,619 1,761 1,626
Lease Liability
7,498 6,607 7,636
Lease Liability non-occupied
20,497 21,590 21,239
Provisions
40 39 39

29,654 29,997 30,540
Total liabilities
34,048 33,769 34,801

Net assets
11,593 11,165 11,174

8
Burger Fuel Group Limited
Consolidated Statement of Financial Position (continued)
As at 30 September 2020


Unaudited Unaudited Audited


30 Sep
2020

30 Sep
2019
31 Mar
2020





Net Tangible Assets per Share (cents) 16.10 14.8 15.0



For and on behalf of the Board on 27
th
November 2020

Peter Brook Josef Roberts
Director Director

9
Burger Fuel Group Limited
Consolidated Statement of Changes in Equity
For the period ended 30 September 2020

September 2020



Contributed
Equity
Foreign
currency
translation
reserve
Retained
earnings Total equity


$’000 $’000 $’000 $’000
Balance as at 1 April 2020
13,595 (441) (1,980) 11,174
Movement in foreign currency translation
reserve recognised in other comprehensive
income

- 60 - 60
Net Profit for the period ended 30
September 2020

- - 359 359
Total comprehensive income

- 60 359 419



Balance as at 30 September 2020

13,595 (381) (1,621) 11,593

September 2019


Contributed
Equity
Foreign
currency
translation
reserve
Retained
earnings Total equity
$’000 $’000 $’000 $’000
Balance as at 1 April 2019

13,864 (324) (2,541) 10,999
Buy Back and Share cancellation

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

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

- - 548 548
Total comprehensive income

- (113) 548 435



Balance as at 30 September 2019

13,595 (437) (1,993) 11,165


March 2020





Contributed
Equity
Foreign
currency
translation
reserve
Retained
earnings Total equity
$’000 $’000 $’000 $’000
Balance as at 31 March 2019

13,864 (324) (2,541) 10,999
Impact of changes in accounting policies

- - 56 56
Balance as at 1 April 2019

13,864 (324) (2,485) 11,055
Buy Back and Share cancellation

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

- (117) - (117)
Net loss for the year ended 31 March 2020

- - 505 505
Total comprehensive income

- (117) 505 388



Balance as at 31 March 2020

13,595 (441) (1,980) 11,174

10
Burger Fuel Group Limited
Consolidated Statement of Cash Flows
For the period ended 30 September 2020

Unaudited Unaudited Audited


30 Sep
2020

30 Sep
2019
31 Mar
2020



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

Receipts from customers
8,329 10,178 20,261
Covid-19 Government wage subsidy
868 - -
Interest received
23 38 113
Goods and services tax received / (paid)
(4) 5 (6)

9,216 10,221 20,368
Cash was applied to:

Payments to suppliers & employees
(7,678) (9,361) (18,066)
Interest paid
- - -
Interest on leases
(235) (218) (443)
Taxes paid
203 (250) (527)

(7,710) (9,829) (19,036)
Net cash flow provided from / (applied to)
operating activities 1,506 392 1,332


Cash flows from investing activities
Cash was provided from:
Repayments from suppliers and staff 1 8 12
Sale of property, plant and equipment 123 10 50
124 18 62
Cash was applied to:

Acquisition of intangible assets
(6) (13) (22)
Advance to supplier, franchisee
10 (133) (150)
Acquisition of property, plant & equipment
(213) (156) (512)
BFG Share buy back & cancellation
- (269) (269)

(209) (571) (953)
Net cash flow applied to investing activities
(85) (553) (891)






Cash flows from financing activities

Cash was applied to:

Lease Liability
(213) (183) (399)
Net cash flows applied to financing activities
(213) (183) (399)

Net movement in cash and cash equivalents
1,208 (344) 42
Exchange gain / (loss) on cash and cash equivalents
(8) 37 25
Opening cash and cash equivalents
5,570 5,503 5,503
Closing cash and cash equivalents
6,770 5,196 5,570

11
Burger Fuel Group Limited
Notes to the Interim Consolidated Financial Statements
For the period ended 30 September 2020

1) REPORTING ENTITIES AND STATUTORY BASE

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

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

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

2) STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

2.1) STATEMENT OF COMPLIANCE

The condensed consolidated interim financial statements should be read in conjunction with the annual financial
statements for the year ended 31 March 2020, which have been prepared in accordance with NZ IFRS.

2.2) REPORTING ENTITY

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

Burger Fuel (Dubai) NZ Limited BF Lease Company No 9 Limited BF Lease Company No 34 Limited
Burger Fuel (ME) DMCC BF Lease Company No 10 Limited BF Lease Company No 35 Limited
Burger Fuel International Limited BF Lease Company No 11 Limited BF Lease Company No 36 Limited
Burger Fuel (Australia) Pty Limited BF Lease Company No 12 Limited BF Lease Company No 37 Limited
Burger Fuel (Australia) No2 Pty Limited BF Lease Company No 13 Limited BF Lease Company No 38 Limited
Burger Fuel International Management Limited BF Lease Company No 14 Limited BF Lease Company No 39 Limited
Burger Fuel Limited BF Lease Company No 15 Limited BF Lease Company No 40 Limited
BurgerFuel Henderson Limited BF Lease Company No 16 Limited BF Lease Company No 41 Limited
Burger Fuel Takapuna Limited BF Lease Company No 17 Limited BF Lease Company No 42 Limited
Winner Winner Limited BF Lease Company No 18 Limited BF Lease Company No 43 Limited
Shake Out Limited BF Lease Company No 19 Limited BF Lease Company No 44 Limited
Concept Brands Limited BF Lease Company No 20 Limited BF Lease Company No 45 Limited
Burger Fuel Pty Limited BF Lease Company No 21 Limited BF Lease Company No 46 Limited
Burger Fuel Australia Pty Limited BF Lease Company No 22 Limited BF Lease Company No 47 Limited
Burger Fuel (USA) Inc. BF Lease Company No 23 Limited BF Lease Company No 48 Limited
Burger Fuel (USA) Management Inc. BF Lease Company No 24 Limited Burger Fuel Group Leases Limited
BF Lease Company Limited BF Lease Company No 25 Limited Burger Fuel Worldwide Limited
BF Lease Company No 1 Limited BF Lease Company No 26 Limited
Shake Out Newmarket Limited
BF Lease Company No 2 Limited BF Lease Company No 27 Limited
Shake Out Container Limited
BF Lease Company No 3 Limited BF Lease Company No 28 Limited

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

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

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

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

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


3) ACCOUNTING POLICIES
The treatment of the accounting policies and method of computation applied are consistent with those of the annual
financial statements for the year ended 31 March 2020, as described in the annual financial statements.

12
Burger Fuel Group Limited
Notes to the Interim Consolidated Financial Statements
For the period ended 30 September 2020

4) SEGMENT INFORMATION

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



September 2020
New Zealand
Australia Middle East USA Total


$’000 $’000 $’000 $’000 $’000
Revenue
6 months
6 months 6 months 6 months
6 months
Sales
3,211
- - - 3,211
Royalties
2,077
- 2 - 2,079
Franchising fees
96
- 17 13 126
Training fees
15
- - - 15
Property Management fees
57
- - 57
Advertising fees
1,520
- - - 1,520
Foreign exchange gain
61
69 - (199) (69)
Sundry income
1,089
71 - 29 1,189
Interest received
23
- - - 23
Interest received - leases
688
- - - 688
Covid-19 Government wage subsidy
868
- - - 868
Total Revenue

9,705 140 19 (157) 9,707

Interest Expense leases occupied
235 - - - 235
Interest Expense leases non-occupied
688 - - - 688
Depreciation
221 - 1 - 222
Depreciation leases
332 - - - 332
Amortisation
71 - - - 71
Segment Result before Tax
616 136 (69) (175) 508
Income Tax Expense 149 - - - 149
Segment Assets 43,998 642 68 933 45,641
Segment Liabilities 33,953 15 77 3 34,048

Acquisition of Property, Plant & Equipment & Intangible Assets

Other 219 - - - 219

13
Operating Segments (Continued)

September 2019
New Zealand
Australia Middle East USA Total


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

4,256
- 89 - 4,345
Royalties

2,450
- 420 9 2,879
Franchising fees

84
- - - 84
Franchise fees IFRS 15 Adjustment

74
- 23 7 104
Training fees

38
- - 38
Property Management fees

57
- - 57
Advertising fees

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

(43)
43 - 152 152
Sundry income

807
- 64 73 944
Interest received

37
1 - - 38
Interest received - leases

719
- - - 719
Total Revenue

10,361 44 616 241 11,262

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

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

Acquisition of Property, Plant & Equipment & Intangible Assets

Other 169 - - - 169

14
Operating Segments (Continued)



March 2020
New
Zealand
Australia Middle East USA Total


12 months 12 months 12 months 12 months 12 months


$’000 $’000 $’000 $’000 $’000
Revenue



Sales
8,325 - 89 - 8,414
Royalties
4,877 - 792 15 5,684
Franchising fees
316 - 47 13 376
Training fees
110 - - - 110
Property Management fees
53 - - - 53
Advertising fees
3,581 - 144 - 3,725
Foreign exchange gain
(75) (17) (11) 246 143
Sundry income
1,694 2 65 80 1,841
Interest received
67 1 1 44 113
Interest on leases
1,410 1,410
Total Revenue
20,358 (14) 1,127 398 21,869

Interest Expense Leases Occupied 443 - - - 443
Interest Expense Leases non occupied 1,410 - - - 1,410
Depreciation 542 - 4 - 546
Depreciation Leases 630 - - - 630
Amortisation 143 - - - 143

Segment Result Before Tax (314) 147 589 301 723
Income Tax Expense 219 - - (1) 218

Segment Assets 44,383 542 97 953 45,975
Segment Liabilities 34,698 11 92 - 34,801

Acquisition of Property, Plant & Equipment & Intangible Assets

Other 534 - - - 534

15
Burger Fuel Group Limited
Notes to the Interim Consolidated Financial Statements
For the period ended 30 September 2020

5) USA SETTLEMENT DEAL / BFG SHARE BUYBACK

Settlement of outstanding issues and share buy backs

The directors of BFG advise that given the ongoing issues relating to Covid-19 that the USA is facing and in resolution
of all outstanding issues that have arisen between Chris Mason and BFG as to obligations and amounts claimed to be
outstanding or owing under earlier arrangements entered into in 2018, the following was agreed on the 23rd October
2020 which was executed on the 11
th
November 2020.

1) To settle an outstanding debt claimed to be owing in relation to BurgerFuel USA Management Inc and Burger Fuel
International Limited BFG acquired from the Mason Family Trust 1,538,461 fully paid ordinary BFG shares for no
cash payment (but attributing a nominal value of NZ$0.39 cents per share, at an agreed settlement amount of
NZ$600,000). This is to clear all outstanding debts owed by Chris Mason’s US company BF Indiana Two LLC to
BFG.
2) In addition to this, BFG will acquire from the Mason Family Trust 1,794,871 fully paid ordinary BFG shares for
consideration of NZ$0.39 cents per share for a total cash payment of NZ$700,000.
3) The store in Indianapolis will close permanently and Chris Mason will cease being the BurgerFuel USA Master
Licensee and will relinquish all rights to operate BurgerFuel in the USA.

Effects of transactions

The transactions described above will result in the buy back and cancellation of 3,333,332 fully paid ordinary BFG
shares representing 6.2% of the 53,670,195 BFG shares currently on issue.
Following the buy back and cancellation; The total number of BFG shares on issue will be 50,336,863.
Chris Mason (via the Mason Family Trust) will beneficially own 3,252,977 fully paid ordinary BFG shares (held on
trust by Mason Roberts Holding Limited - MRHL) representing 6.5% of the BFG shares then on issue.

Under the agreement between Chris Mason and BFG dated March 2018, Chris Mason had the option to settle amounts
payable for the USA Master Licence agreement and the purchase of USA assets in cash or with BFG shares. In
assessing when the revenue would be recognised, when the shares were handed back there is no increase in resources to
BFG and given that it was not within the control of BFG whether they will receive shares or cash at the time of the
transaction, then the revenue recognition criteria is not met unless cash is received.

Under NZ IAS 32.33 there can be no profit or loss impact on the ‘handing back’ of your own equity instruments in
settlement of a financial asset, thus the settlement of this transaction will have no impact to the FY21 Income
Statement.

While the transaction should have been initially recorded as a put option liability (with a corresponding receivable)
until the transaction was settled, management has assessed the treatment adopted as being materially consistent with the
treatment of a put option liability.

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

During the six months to 30 September 2020, the Group acquired assets with a total cost of $212,897 (2019: $156,006)
and intangible assets of $6,182 (2019: $12,750).
The Group also disposed of assets with a net book value of $23,836 (2019: $8,041).

The Group has committed to opening a company owned Winner Winner store in Takapuna, Auckland. This store is
scheduled to open on the 1
st
December 2020.

16
Burger Fuel Group Limited
Company Directory
As at 30 September 2020


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

Auckland 1011
Company Number

1947191 Bridgepoint Group Accounting Pty Ltd

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

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


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


Business Headquarters
66 Surrey Crescent

Grey Lynn Bankers
Auckland 1021 ASB Bank Limited

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

45 Queen Street

Auckland 1010





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

Directors and Officers Diversity
NZX listed issuers are required to report quantitative data on the gender breakdown of Directors and
Officers at the financial year end. The policy behind the rule is to provide information to allow investors
to maintain an informed view of diversity as a factor relevant to an Issuer’s expected performance.


2021

2020

Male Female

Male Female
Directors 3 -

3 -
Executive/ Leadership Team 6 1

7 2

17