UNAUDITED INTERIM FINANCIAL STATEMENTS

Transcription

1 SOUTHERN CHARTER FINANCIAL GROUP LIMITED UNAUDITED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2018

2 Dear Shareholders The Directors of Southern Charter Financial Group ( the Company ) are pleased to report its financial results for the six months ended 30 September Financial Results Southern Charter Financial Group reports an unaudited net loss attributable to shareholders of $48,660 for the half year ended 30 September This compares with a net profit attributable to shareholders of $183,341 for the same period last year. The prior period value is influenced by a gain on disposal of subsidiary of $499,542 for which the correct accounting treatment was subsequently determined to be recognized in equity rather than in profit and loss. Adjusting for the change means that the loss from continuing operations of $48,660 would compare to a loss from continuing operations of $157,447 for the same period last year. The net loss figure for the interim period ended 30 September 2018 consists mainly of interest earned on cash deposits with the bank and expenses incurred on compliance and maintenance of the Company. Outlook A recent change in the majority shareholder was approved at the special meeting on 7 December The Company will continue to look for appropriate acquisition targets with the support of the new majority shareholder. The Company will seek approval from all shareholders, as required, to complete any major transaction. On behalf of the Directors of Southern Charter Financial Group the Company extends its thanks to the shareholders for their support of the company. Joseph van Wijk Director Page 1 Interim Report 30 September 2018

3 CONTENTS GROUP INTERIM STATEMENT OF COMPREHENSIVE INCOME 3 GROUP STATEMENT OF FINANCIAL POSITION 4 GROUP INTERIM STATEMENT OF CHANGES IN EQUITY 5 GROUP INTERIM STATEMENT OF CASH FLOWS 6 NOTES TO THE FINANCIAL STATEMENTS 7 BUSINESS DIRECTORY 9 Page 2 Interim Report 30 September 2018

4 Southern Charter Financial Group Limited GROUP INTERIM STATEMENT OF COMPREHENSIVE INCOME For the period ended 30 September 2018 Unaudited Unaudited Audited Six months Six months Year Sep-18 Sep-17 Mar-18 $ $ $ Continuing operations Interest Income 32,056-20,874 Other income - 15,000 15,000 Administrative expenses (80,716) (121,909) (251,161) Loss before interest, tax, depreciation, amortisation and other items (48,660) (106,909) (215,287) Finance costs - (50,538) - Gain on disposal of subsidiary - 499,542 - Loss before income tax (48,660) 342,095 (215,287) Income tax expense Loss for the year from continuing operations (48,660) 342,095 (215,287) Loss for the period from discontinued operations - (158,754) (201,792) Net loss for the period attributable to shareholders (48,660) 183,341 (417,079) Other comprehensive income Total comprehensive loss for the year, net of tax, attributable to shareholders (48,660) 183,341 (417,079) Earnings per share: cents cents cents Basic and diluted earnings/(loss) per share (0.01) 0.14 (0.13) Basic and diluted earnings/(loss) per share (0.01) 0.27 (0.07) This statement should be read in conjunction with the accompanying notes and the annual financial statements for the year ended 31 March Page 3 Interim Report 30 September 2018

5 Southern Charter Financial Group Limited GROUP STATEMENT OF FINANCIAL POSITION As at 30 September 2018 Unaudited Six months Sep-18 Audited Year Mar-18 $ $ Assets Current assets Cash and cash equivalents 2,358,036 2,492,095 Trade and other receivables 94,019 46,431 Total assets 2,452,055 2,538,526 Equity and liabilities Current liabilities Trade and other payables 39,128 76,939 Total liabilities 39,128 76,939 Equity Issued capital 5,672,856 5,672,856 Accumulated loss (3,259,929) (3,211,269) Total equity 2,412,927 2,461,587 Total equity and liabilities 2,452,055 2,538,526 cents cents Net Tangible Asset per Share December 2017 Director: Joseph Van Wijk Director: John Cilliers This statement should be read in conjunction with the accompanying notes and the annual financial statements for the year ended 31 March Page 4 Interim Report 30 September 2018

6 Southern Charter Financial Group Limited GROUP INTERIM STATEMENT OF CHANGES IN EQUITY For the period ended 30 September 2018 Issued capital Accumulated Loss Total equity $ $ $ As at 1 April ,826,634 (3,593,732) (767,098) Loss for the period - 183, ,341 Total comprehensive loss - 183, ,341 Issue of share capital 3,284,250-3,284,250 Reverse consolidation equity of Lateral Profiles on sale (300,000) 300,000 - Transaction costs (138,028) - (138,028) Unaudited balance for the period ended 30 September ,672,856 (3,110,391) 2,562,465 As at 1 October ,672,856 (3,110,391) 2,562,465 Loss for the period - (600,420) (600,420) Total comprehensive loss - (600,420) (600,420) Capital contibution resulting from the distribution to shareholders of subsidiary containing a net liability , ,542 At 31 March ,672,856 (3,211,269) 2,461,587 As at 1 April ,672,856 (3,211,269) 2,461,587 Loss for the period - (48,660) (48,660) Total comprehensive loss - (48,660) (48,660) Unaudited balance for the period ended 30 September ,672,856 (3,259,929) 2,412,927 This statement should be read in conjunction with the accompanying notes and the annual financial statements for the year ended 31 March Page 5 Interim Report 30 September 2018

7 Southern Charter Financial Group Limited GROUP INTERIM STATEMENT OF CASH FLOWS For the period ended 30 September 2018 Unaudited Unaudited Audited Six months Six months Year Sep-18 Sep-17 Mar-18 $ $ $ Operating activities Receipts from customers - 277, ,262 Received from GTNZ for deferral fee ,000 Interest received 32,056-12,639 Payments to suppliers (166,115) (378,091) (851,310) Payments to employees - (105,180) (118,425) Interest paid (81,045) (30,507) Income tax paid/(received) Net cash flows from operating activities (134,059) (286,635) (639,172) Investing activities Net cash flows from investing activities Financing activities Proceeds from issue of share capital - 3,146,222 3,201,975 Distribution to shareholders - (400,000) (190,141) Net cash flows from financing activities - 2,746,222 3,011,834 Net increase in cash and cash equivalents (134,059) 2,459,587 2,372,662 Cash and cash equivalents at beginning of year 2,492, , ,433 Cash and cash equivalents at end of year 2,358,036 2,579,019 2,492,095 This statement should be read in conjunction with the accompanying notes and the annual financial statements for the year ended 31 March Page 6 Interim Report 30 September 2018

8 NOTES TO THE FINANCIAL STATEMENTS 1. STATEMENT OF ACCOUNTING POLICIES Reporting entity These consolidated financial statements and notes represent those of Southern Charter Financial Group Limited and, until disposal on 31 August 2017, its subsidiary Lateral Profiles Limited (the Group ). References to SCFG are used to refer to the Group and Southern Charter Financial Group Limited (the Company ). Golden Tower NZ Limited is the ultimate legal parent company of the Group. Southern Charter Financial Group Limited is a limited liability company incorporated and domiciled in New Zealand. It is registered under the Companies Act SCFG is listed on the NZX Alternative Market ( NZAX ). SCFG is a FMC reporting entity under Part 7 of the Financial Markets Conduct Act 2013 and its financial statements have been prepared in accordance with the Companies Act 1993, The Financial Reporting Act 2013 and the Financial Markets Conduct Act The registered office and principal place of business are disclosed in the directory to the annual report. The principal activity of the Group until 31 August was as a developer and distributer of premium digital products and services that enable commercialisation of the mobile and fixed web using various payment methods. On 31 August 2017, SCFG completed the planned disposal of the subsidiary Lateral Profiles Limited and SCFG has subsequently become a listed shell to enable future acquisition of a suitable operating business. Statement of compliance The accounting principles adopted are those recognised as appropriate for the measurement and reporting of financial performance and financial position on the historical cost basis. The accrual basis of accounting has been used unless otherwise stated and the financial statements have been prepared on a going concern basis. The information is presented in New Zealand dollars which is the Company s functional currency and the Group s presentation currency and are rounded to the nearest dollar. 2. SEGMENT INFORMATION There have been no material changes in the nature of operating segments since 31 March FINANCIAL RISK MANAGEMENT There have been no material changes in the management of risk or in any risk management policies in the current period. 4. PROPERTY, PLANT AND EQUIPMENT There have been no changes in the estimated useful life of key items of plant and equipment. Page 7 Interim Report 30 September 2018

9 5. INTANGIBLE ASSETS There have been no changes in the estimated recoverable amount or estimated useful life of intangibles 6. RELATED PARTY TRANSACTIONS Related party transactions for the period consisted of director fees of $10,000 and executive management fees of $25,000 paid to Joseph van Wijk. Professional services fees of $5,283 were paid to John Cilliers, a director of the company, in relation to accounting services and preparation of the 2018 annual report. Both values are included in the administrative expense as reported for the period. 7. SIGNIFICANT EVENTS AFTER BALANCE DATE The Company s major shareholder, Golden Tower NZ Limited, entered into a conditional agreement to sell its shares (being 86% of the ordinary shares on issue) to Chang Ku EE in consideration for $2.95 million. The transaction was approved by shareholders at a special meeting of shareholders held 7 December There were no other significant events subsequent to 30 September AUDIT These interim financial statements are not required to be audited. Page 8 Interim Report 30 September 2018

10 BUSINESS DIRECTORY Company number: Directors: Registered office: Share Registrar Bankers: Solicitors: Auditors: Karl Chan, Chairman Joseph van Wijk Chong Hoi Sze John Cilliers Level 2 Tower Building, 50 Customhouse Quay, Wellington, 6011 Link Market Services Limited Level 7, Zurich House 21 Queen Street Auckland 1010 Westpac Bank Limited Duncan Cotterill Wellington BDO, Auckland Auckland Page 9 Interim Report 30 September 2018