BGI FY20/21 Financial Results

Results announcement



13129447_1


Results for announcement to the market
Name of issuer Blackwell Global Holdings Limited
Reporting Period 12 months to 31 March 2021
Previous Reporting Period 12 months to 31 March 2020
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$135 (69%)
Total Revenue $528 (10.8%)
Net profit/(loss) from
continuing operations
($427) (36%)
Total net profit/(loss) ($427) (36%)
Interim/Final Dividend
Amount per Quoted Equity
Security
The company does not propose to pay a dividend at this time.
Imputed amount per Quoted
Equity Security
Not Applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.0005 $0.0007
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
This announcement is extracted from BGI’s unaudited financial
statements for the 12 months ended 31 March 2021. A copy of
these unaudited financial statements is attached to this
announcement.
Authority for this announcement
Name of person

authorised
to make this announcement
Craig Alexander
Contact person for this
announcement
Craig Alexander
Contact phone number 021 688 396
Contact email address craig@bagoup.co.nz
Date of release through MAP

31 May 2021

Unaudited financial statements accompany this announcement.

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1 



Blackwell Global Holdings Limited (NZX: BGI)

Full Year preliminary unaudited announcement for the 12 months ended 31 March 2021
 


Commentary
AUCKLAND, New Zealand, 31 May 2021 - The Board of Blackwell Global Holdings Limited (NZX: BGI)
provides the market with their full year update for the 12 months ended 31 March 2021.

Results for Announcement to the Market

Reporting Period 12 months to 31 March 2021
Previous reporting period 12 months to 31 March 2020


Amount (000s) Percentage change
Revenue from ordinary activities NZ$135 (69%)
Loss from ordinary activities after
tax attributable to security holder
NZ$(427) 36%
Net profit attributable to
shareholders
NZ$(427) 36%

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

Record Date Not applicable
Dividend Payment Date Not applicable

Comments: See below

2 



Blackwell Global Holdings Limited (NZX: BGI)

Full Year preliminary unaudited announcement for the 12 months ended 31 March 2021
 
Lending Operations Discontinued

As previously advised to the market, during the course of the financial year the Directors resolved to wind
down the Group’s finance company operations given the Company was unable to raise sufficient funding
to grow and develop a meaningful finance company operation.

The Company’s loan book as at 31 March 2021 was $643,672 represented by one loan. The loan was
secured by a first mortgage over residential property. It is anticipated that this loan will be repaid in full
during the course of June 2021.

In parallel with the wind down of the finance company operation, the Board implemented a number of
strategies to reduce the outgoings of the Company. These initiatives included the disestablishment of the
roles of Chief Executive Officer and Chief Operating Officer. Both executives left the employment of the
group in February 2021.

During the course of the financial year, one of the non-executive directors Ewe Leong Lim elected to retire
from the his role with the Group effective from 31 March 2021.

Changes in Accounting Policy

The consolidated financial statements have been prepared using the same accounting policies detailed in
the Group's audited consolidated financial statements for the year the ended 31 March 2021.

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.

Bonds

The bond agreement with Blackwell Global Group Limited was amended by Deed of Variation dated 24
March 2020 where 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 2021. On 25 November 2020 a Letter of Undertaking was
agreed with Blackwell Global Group Limited further extending the bond maturity date to 30 June 2022, with
0% interest until maturity. The net present value of the bonds has been readjusted on the balance sheet
for the present value of the face values at maturity using the original effective interest rate of 6% per
annum.

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

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

Going Forward 
The Board is actively looking to identify a suitable business opportunity to invest in and/or acquire through
a reverse takeover transaction (RTO). Discussions have been had with several potential acquisition
targets to date, but none of those discussions have developed into a tangible transaction to date.

What is an RTO?  
An RTO is a transaction structured such that the Company would acquire 100% of the business assets, or
the shares in the company that owns the business assets, in consideration for the payment of cash and/or
the issue of new shares in the Company, to the vendors, to fund the acquisition.

The new business acquired would then effectively become a subsidiary of the Company (the listed
company), trading on the NZX Main Board. The stakeholders in the business acquired, would ultimately
become shareholders in the Company as part of the RTO, and would have representation at the Board
level as appropriate.

3 



Blackwell Global Holdings Limited (NZX: BGI)

Full Year preliminary unaudited announcement for the 12 months ended 31 March 2021
 

In conjunction with the RTO process, the Company would seek to raise additional growth capital to assist
in funding the future growth of the business.

Investment Criteria
The Board is focusing on business opportunities that satisfy one or more of the following investment
criteria:

• The business has excellent personnel and management

• The business operates in an attractive and positive business sector

• The business has a robust business model

• The business has solid historical earnings, or alternatively has a sound business platform from
which to implement its business plan and generate strong earnings in the future;

• The business owns proprietary intellectual property

• The business has potential to grow organically, via acquisition, or through the further investment in
capital plant

• The business has the potential to scale internationally

• The business would benefit from being able to raise additional capital on the market

• Is likely to generate superior returns for the Company and its existing shareholders

The Board continues to investigate all credible investment opportunities that may present themselves and
are hopefully of having a transaction underway during the course of this calendar year.

Earnings per Share and Net Tangible Asset per security

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

Audit

The consolidated financial statements are to be audited.


Future Events

Event Date
Annual Report due 30 June 2021


ENDS


Authority for this announcement
Craig Alexander
Director
Ph: 021688396
craig@bagroup.co.nz
Date of release: 31 May 2021

4 



Consolidated Statement of Comprehensive Income
Blackwell Global Holdings Limited
For the year ended 31 March 2021
 



2021 2020

$ $



Revenue


Interest and fee income 135,446 436,170
Other income 392,923 156,359

Total Income 528,369 592,529

Expenses


Directors' fees (171,000) (286,500)
Employee expenses (291,553) (275,400)
Interest expense (138,947) (283,283)
Other operating expenses (354,338) (412,693)

Total expenses (955,838) (1,257,876)

Loss before income tax (427,470) (665,347)

Income tax benefit/(expense) - -

Total comprehensive loss for the year (427,470) (665,347)

Attributable to:
Owners of the parent company (427,470) (665,347)

Earnings/(loss) per share
Basic (loss) per share (cents per share): (0.09) (0.15)

5 



Statement of Changes in Equity
Blackwell Global Holdings Limited
For the year ended 31 March 2021
 


Share Contributed Convertible Accumulated Total
capital capital note losses equity
reserve
$ $ $ $ $


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 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) 690,234


Balance at 1 April 2020 12,606,377 127,516 - (12,043,659) 690,234

Loss for the year - - - (427,470) (427,470)

Total comprehensive loss
for the year - - - (427,470) (427,470)

Balance at 31 March 2021 12,606,377 127,516 - (12,471,129) 262,764

6 



Consolidated Statement of Financial Position
Blackwell Global Holdings Limited
As at 31 March 2021
 


2021 2020

$ $
Current assets
Cash and cash equivalents 1,986,671 1,805,615
Prepayments and other receivables 8,347 16,894
Loan receivables 643,672 1,548,901
Total current assets 2,638,690 3,371,410

Non-current assets
Prepayments and other receivables 75,000 75,000
Property, plant and equipment 5,858 10,126
Total non-current assets 80,858 85,126

Total assets 2,719,548 3,456,535


Current liabilities
Trade and other payables 58,597 83,279
Accruals, provisions and other liabilities 29,627 170,901
Borrowings 44,178 44,178
Total current liabilities 132,402 298,358

Non-current liabilities
Borrowings 2,324,382 2,467,945
Total non-current liabilities 2,324,382 2,467,945

Total liabilities 2,456,784 2,766,302

Net assets 262,764 690,233

Equity
Share capital 12,606,377 12,606,377
Contributed capital 127,516 127,516
Accumulated losses (12,471,129) (12,043,659)
Total equity 262,764 690,233

Net tangible assets per share (cents per share): 0.05 0.14

7 



Consolidated Statement of Cash Flows
Blackwell Global Holdings Limited
For the year ended 31 March 2021
 


2021 2020
$ $

Cash flows from operating activities
Interest received 67,859 346,725
Lending, credit fees and other income received 32,570 125,066
Operating inflows 100,429 471,791

Net advances in loan receivables 943,200 3,820,159
Payments to suppliers and employees (858,840) (775,745)
Interest paid (2,838) (290,040)
Income taxes refunded 59 47
Repayment of GST liability - (18,750)
Operating outflows 81,581 2,735,672

Net cash used in operating activities 182,010 3,207,463


Cash flows used in investing activities
Purchase of property, plant and equipment (954) (10,532)
Net cash used in investing activities (954) (10,532)


Cash flows from financing activities
Payments of borrowings - (2,900,000)
Payments for issue of share capital - (4,370)
Net cash flow from financing activities - (2,904,370)


Net increase in cash and cash equivalents 181,056 292,561
Cash and cash equivalents at the beginning of the period 1,805,615 1,513,055
Cash and cash equivalents at the end of the year 1,986,671 1,805,615


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