TIDMGSH
RNS Number : 8150I
Green & Smart Holdings plc
22 June 2017
The information contained within this announcement is deemed by
the Group to constitute inside information as stipulated under the
Market Abuse Regulations (EU) No. 596/2014. Upon the publication of
this announcement via a Regulatory Information Service ("RIS"),
this inside information is now considered to be in the public
domain.
22 June 2017
Green & Smart Holdings plc
("Green & Smart" or "the Group")
Half Year Results for the Six Months ended 31 March 2017
Green & Smart Holdings plc (AIM: GSH), a renewable energy
company generating power from biogas captured through the treatment
of palm oil mill effluent ("POME") in Malaysia, announces its
interim results for the six months ended 31 March 2017.
Financial Summary*
-- Revenue increased 18% to RM25.8m (H1 2016: RM21.8m)
-- Gross profit was RM6.9m (H1 2016: RM6.7m)
-- Profit before tax was RM3.8m (H1 2016: RM4.8m)
-- Raised RM6m through the issue of new ordinary shares to
Malaysian Technology Development Corporation Sdn Bhd
-- Cash, cash equivalents and receivables at 31 March 2017 were
RM76.22m (30 September 2016: RM58.65m)
-- Post period, arranged a 12 month debt facility of c. RM1.4m
and raised up to GBP0.6m (c. RM2.9m) by way of a private
placement
Operational Summary
Green & Smart Projects
-- Received a certificate of initial operation date ("IOD") from
the authorities for first fully-owned biogas power plant at Kahang
and, post period, received the formal certificate of commercial
operation date ("COD"), which allows the Group to sell power to the
national utility at the full tariff rate
-- The Group's second wholly-owned biogas power plant, the 2.0MW
Malpom plant, has now been commissioned following completion of
construction and installation of the biogas system
Megagreen Energy ("MGE") & Concord Green Energy ("CGE")
Projects
-- Completed construction of two biogas power plants (Labis,
Johor and Maran, Pahang) owned by Megagreen Energy Sdn Bhd under
Phase 2 MGE contracts
-- Work commenced on four CGE greenfield biogas-based power
generation plants being constructed within the sites of four
specified palm oil mills owned by Felda Palm Industries Sdn Bhd
-- Green & Smart remains in discussions with CGE in relation
to its pipeline of brownfield sites
Mr. Saravanan Rasaratnam, Chief Executive Officer of Green &
Smart, said:
"During the first half of the year, the Group continued to
execute on its strategy to generate power from biogas captured
through the treatment of POME in Malaysia. The Group advanced its
projects under EPCC contracts resulting in higher revenues than in
the equivalent period last year. Our first fully-owned biogas power
plant, Kahang, is now able to sell power to the national utility at
the full tariff rate and our second fully-owned plant, Malpom, has
now been commissioned.
"We continue to make progress with the development of our
pipeline of wholly-owned and associated projects. Green & Smart
anticipates the completion of more EPCC contracts in the second
half and our fully-owned biogas power plants will continue to
provide power to the grid. We remain one of the few
fully-integrated providers and operators of biogas plants in
Malaysia at a time when government regulation requires all palm oil
mill operators to install biogas plants to capture greenhouse gases
in the form of methane that would otherwise be released into the
atmosphere. As a result, the Board looks to the future with
confidence."
* The financial information in this announcement for the
comparative period for the six months ended 31 March 2016 covers an
accounting period prior to the listing of the Group on AIM and
completion of the Group reorganisation, on 6 May 2016, comprising
the acquisition by Green & Smart Holdings plc of Green &
Smart Sdn Bhd, Green & Smart Ventures Sdn Bhd and 51% of the
share capital of Our Energy Group (M) Sdn Bhd to form the Green
& Smart group of companies as it is currently constituted and
the admission to trading on AIM of the share capital of Green &
Smart Holdings plc.
Enquiries
Green & Smart Holdings plc
Saravanan Rasaratnam, Chief Executive
Officer
Navindran Balakrishnan, Chief Operations
Officer +603 2095 0024
Cantor Fitzgerald Europe (Nominated
Adviser and Broker)
Andrew Craig, Richard Salmond +44 20 7894 7000
Luther Pendragon Ltd
Harry Chathli, Claire Norbury,
Alexis Gore +44 20 7618 9100
Operational Summary
Green & Smart designs and builds biogas power generation
plants. The plants capture greenhouse gasses from palm oil mill
waste in Malaysia, which in turn is converted to electricity
typically to be sold under 16-year electricity Feed-in-Tariffs
("FiT"). The Group works with major crude palm oil producers,
including the world's largest producer Felda Global Ventures
Holdings Berhad, and operates two business models: build, own,
operate ("BOO") and that of engineering, procurement, construction
& commissioning ("EPCC") contractor for third parties.
Fully-owned Plants - BOO
Green & Smart has established a pipeline of projects that it
will build, own and operate. Through the BOO structure, the Group
builds, owns and operates biogas power plants situated on land
within or in close proximity to palm oil mills. As the mill
operators generate palm oil mill effluent ("POME") from their palm
processing mills on a continuous basis, Green & Smart's biogas
operations are built to ensure that they can treat the POME and
capture methane from which to generate electricity also on a
continuous basis. Under this model, the Group contracts with mill
owners to finance and build plants for the generation and sale of
electricity to electric utilities - Tenaga Nasional Berhad ("TNB"),
a government-controlled company and largest electric utility in
Malaysia, or Sabah Electricity Sdn Bhd ("SESB"), the local utility
in the Sabah state of Malaysia - under the FiT regime using waste
from the mills made available by the mill owners.
During the period, the Group's first fully-owned plant, the
2.0MW Kahang biogas plant located in the state of Johor, received a
certificate of initial operation date ("IOD") from the authorities
and, post period, it received the formal certificate of commercial
operation date ("COD"). As a result, the Group is now selling power
generated by the Kahang plant to the national utility at the full
tariff rate.
At the Group's second fully-owned plant, the 2.0MW Malpom plant
located in Nibong Tebal, Penang, Green & Smart completed
construction and installation of the biogas system, and commenced
commissioning. Post period, as announced today, the Group completed
the commissioning of the plant, and live testing of power
generation from the plant will now be undertaken by the Sustainable
Energy Development Authority of Malaysian ("SEDA") and TNB. Green
& Smart will commence recording revenues as power generated for
transmission over the national grid during the testing period will
be sold to TNB. The Group anticipates testing to be completed by
the end of July 2017 when the plant will become fully operational
at headline capacity.
Also during the period, the Group advanced the Minyak (2.7MW),
Liziz (2.8MW) and Milik Mestika (2.9MW) projects, including
expanding the palm oil mill effluent capture facilities.
In addition, work is scheduled to commence shortly on the Dupont
(1.0MMW) and Veetar (2.0MW) plants.
EPCC & Associated Companies
The Associated Companies have been established to own biogas
power plants at palm oil mills owned by large palm oil businesses
under a build-partially own-operate structure. Through its equity
stakes in the Associated Companies, the Group has an ongoing
interest in the performance of the plants in addition to revenue
from the initial EPCC contracts for building the biogas power
plants to be owned by these Associated Companies.
Megagreen Energy
During the period, the Group completed the construction, under
EPCC contract with Megagreen, of plants at Labis (1.0MW) in Johor
and Maran (1.0MW) in Pahang ("MGE Phase 2 projects").
Green & Smart understands that Megagreen continued to
progress application for the IODs for the three plants that the
Group completed in the prior financial year - at Kilang Sawit
Nasaruddin (1.0MW) in Bota, Perak; Kilang Sawit Sg Melikai (1.0MW)
in Mersing, Johor; and Kilang Sawit Seberang (2.0MW), Perak ("MGE
Phase 1 projects") - which will start to generate revenue when the
IOD is received.
MGE's five FiT-approved biogas power plants, which are installed
alongside mills owned by FELCRA Berhad, have a total installed
capacity of 6.0MW. The Group will receive revenue from the sale of
power generated by these plants as a result of its equity stake in
MGE.
Concord Green Energy
The Group commenced work, under its EPCC contract with CGE, on
four greenfield biogas-based power generation plants to be
constructed within the sites of four specified palm oil mills owned
by Felda Palm Industries Sdn Bhd. The Group expects to complete the
CGE plants by year-end 2017 with the process of applying for IOD
and COD on these plants by CGE to follow.
Green & Smart remains in discussions with CGE in relation to
its pipeline of brownfield sites and will provide further updates
as appropriate.
Management Titles
The Board of Green & Smart has resolved to amend the job
titles of the key management personnel to bring the descriptions in
line with industry norms and to better reflect the roles currently
being performed by the individuals. Henceforth, Mr. Saravanan
Rasaratnam (formerly Group Managing Director) has assumed the title
of Chief Executive Officer; Mr. Navindran Balakrishnan (formerly
Group Executive Director) has assumed the title of Chief Operations
Officer; Mr. Sivadas Kumar (formerly Chief Executive Officer) has
assumed the title of Chief Financial Officer; and Mr. Thannimalai
Renganathan (formerly Chief Operations Officer) has assumed the
title of Chief Technical Officer.
Dividend Policy
To date, the earnings of the Group have been reinvested in the
business to fund the Green & Smart's ongoing growth strategy.
However, as a result of its mature pipeline of projects,
anticipated cash generation from its fully-owned plants connected
to the grid and completion of further EPCC contracts, the directors
of Green & Smart (the "Directors") believe that it will be
commercially prudent for the Group to consider the implementation
of a progressive dividend policy targeting a maiden dividend for
the financial year ending 30 September 2018.
Financial Review
Revenues for the six months ended 31 March 2017 increased by 18%
to RM25.8m compared with RM21.8m for the first half of the 2016
financial year. The revenue recognised for the six months ended 31
March 2017 was generated primarily through the provision of EPCC
services to its Associated Companies, but the Group also derived
revenue from the sale of power from its fully-owned Kahang biogas
power plant.
Operating profit was RM3.8m compared with RM4.8m for the first
half of the prior year and, due to the Group's BioNexus Status that
exempts it from tax, profit before tax was RM3.8m (H1 2016: RM4.8m)
and profit after tax was also RM3.8m.
On a consolidated level, the Group's earnings per share for the
six month period ended 31 March 2017 was RM0.013, based on the
weighted number of ordinary shares (H1 2016: RM0.017) (see Note 11
to the financial statements).
In December 2016, the Group received a further investment of
RM6m (c. GBP1.14m at RM5.25 to 1GBP conversion rate) through the
issue of new ordinary shares to the Malaysian Technology
Development Corporation Sdn Bhd, a company wholly-owned by the
sovereign wealth fund of the Government of Malaysia that was
established to promote and support the commercialisation of
technology in Malaysia. Cash, cash equivalents and receivables at
31 March 2017 were RM76.22m (30 September 2016: RM58.65m).
At 31 March 2017, the Group had debtors of RM75.1m in the form
of its partners, MGE and CGE. As previously stated, the Directors
of Green & Smart are actively monitoring the MGE and CGE
receivables. Further payments of RM5.5m were received from these
parties during the period and a further RM0.7m was received post
the period end. As a shareholder in both MGE and CGE, the Directors
of Green & Smart are monitoring the position closely including
the recent external funding that each of these groups have been
awarded and entered into, aside from their existing cash resources,
which totals RM84.2m from Malaysian government and established
private financial institutional sources, to be drawn down in 2017
and 2018.
Having reviewed the third-party funding arrangements now in
place for both MGE and CGE and having received assurances from the
management of MGE in relation to the timing of payments, the
Directors consider the amounts owing to be recoverable in full and
that the outstanding receivable position will be progressively
rectified.
Post period, the Group entered into a 12-month loan of
approximately RM1.4m. Additionally, the Group successfully raised
up to GBP552,759 by way of a private placement of 6,141,772
shares.
Outlook
The Group continues to make progress with the development of its
pipeline of wholly-owned and associated projects. Green & Smart
anticipates completion of more EPCC contracts in the second half
and the Group's fully-owned biogas power plants will continue to
provide power to the grid.
The Group has a significant market share of contracts awarded to
a biogas-to-power company generating power from biogas captured
through the treatment of palm oil mill effluent in Malaysia to
date. The maintenance of this leading position is very much
dependent on the availability of adequate funding and financing and
accordingly the Group is focused on securing long-term financing
facilities from local finance providers that are becoming
increasingly familiar with both Green & Smart and also the
generation of biogas from POME to generate electricity. The Group
continues to be selective in seeking to win both BOO and EPCC
contracts in Malaysia that meet with its strict operational and
financial evaluation criteria on a project-by-project basis.
The Group is also evaluating additional opportunities in
neighbouring Indonesia. The Directors estimate there are
approximately 1,000 palm oil processing mills in Indonesia and the
Directors will apply their normal operational and financial
selection criteria in terms of the partners with whom they will
seek to contract for biogas plants. Any projects entered into by
Green & Smart in Indonesia are expected to be denominated in
US$ and works would be sub-contracted locally with established
engineering firms. Indonesia represents a valuable and additive
market opportunity to the Group's main area of focus in
Malaysia.
The aforementioned drivers provide the Board with confidence in
delivering sustained, long-term growth and shareholder value. The
Directors believe that, with recurring revenue streams and a strong
market position, it will be commercially prudent for the Group to
consider the implementation of a progressive dividend policy
targeting a maiden dividend for the financial year ending 30
September 2018.
GREEN AND SMART HOLDINGS PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
For the six months ended 31 March
Audited
Year
Unaudited Unaudited ended
31-Mar-2017 31-Mar-2016 30-Sep-2016
Note RM'000 RM'000 RM'000
ASSETS
NON-CURRENT ASSETS
Intangible assets 927 982 954
Investment in associates 26 400 26
Property, plant and
equipment 14 32,966 17,332 27,700
Total non-current
assets 33,919 18,714 28,680
------------ ------------ ------------
CURRENT ASSETS
Trade and other receivables 2,638 27,492 1,071
Amount owing by contract
customers 15 551 - 551
Amount owing by related
parties 16 75,707 - 55,422
Cash and cash equivalents 12 515 5,183 2,153
Total current assets 79,411 32,675 59,197
------------ ------------ ------------
Total assets 113,330 51,389 87,877
============ ============ ============
EQUITY
Stated capital 13 41,142 9,000 35,142
Foreign translation
reserve (3,169) - (2,657)
Retained profit 16,826 8,849 13,007
Merger reserve (4,028) - (4,028)
------------ ------------ ------------
Total shareholders'
equity 50,771 17,849 41,464
Non-controlling interests 47 47
Total equity 50,818 17,849 41,511
------------ ------------ ------------
CURRENT LIABILITIES
Trade and other payables 17 50,420 21,045 34,676
Amount owing to contract
customers 15 150 2,553 150
Short-term borrowings 1,941 9,397 1,930
Total current liabilities 52,511 32,995 36,756
------------ ------------ ------------
NON-CURRENT LIABILITY
Government grant income 130 - 136
Long term borrowings 8,508 - 8,578
Amount owing to directors 1,363 545 896
Total non-current
liabilities 10,001 545 9,610
------------ ------------ ------------
Total liabilities 62,512 33,540 46,366
------------ ------------ ------------
Total liabilities
and equity 113,330 51,389 87,877
============ ============ ============
GREEN AND SMART HOLDINGS PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 March
Audited
Year
ended
31-Mar-2017 31-Mar-2016 30-Sep-16
Note RM'000 RM'000 RM'000
Revenue 25,797 21,780 67,375
Cost of sales (18,920) (15,108) (50,318)
------------ ------------ ----------
Gross profit 6,877 6,672 17,057
Other income 20 12 197
Less: operating expenses
Listing costs - - (1,936)
Administrative expenses (3,058) (1,863) (5,070)
Other expenses (9) - (119)
------------ ------------ ----------
(3,067) (1,863) (7,125)
Operating profit 3,830 4,821 10,129
Finance cost (11) - (45)
Share of result in
associate undertakings,
net of tax - - (156)
Profit before taxation 3,819 4,821 9,928
Income tax expense 10 - - -
------------ ------------ ----------
Profit for the year
after tax 3,819 4,821 9,928
------------ ------------ ----------
Other comprehensive
income
Items that may be
reclassified subsequently
to profit or loss:
Exchange difference
on translation of
foreign operations (512) - (2,657)
Total comprehensive
income 3,307 4,821 7,271
============ ============ ==========
Profit for the year
attributable to:-
- Owners of the company 3,819 4,821 9,929
- Non-controlling
interest - - (1)
3,819 4,821 9,928
============ ============ ==========
Total comprehensive
income attributable
to:-
- Owners of the company 3,307 4,821 7,272
- Non-controlling
interest - - (1)
3,307 4,821 7,271
============ ============ ==========
Earnings per share:
Basic (RM, cents) 11 1.35 1.74 3.59
Diluted (RM, cents) 11 1.34 1.74 3.58
============ ============ ==========
GREEN AND SMART HOLDINGS PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 March
Note
Attributable
Foreign to owners
Stated translation Merger Retained of the Non-controlling Total
Capital reserve reserve Profits company interest equity
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
Balance as at 1
October 2015 - - 5,041 3,078 8,119 48 8,167
Profit for the year - - - 9,929 9,929 (1) 9,928
Other
comprehensive
income
Translation of foreign
operations - (2,657) - - (2,657) - (2,657)
--------- ----------------
Total comprehensive
income - (2,657) 5,041 13,007 15,391 47 15,438
--------- ------------- --------- --------- ------------- ---------------- ---------
Transactions with
owners
Issuance of shares
on group reconstruction 13,069 - (9,069) - 4,000 4,000
Issuance of placing
shares 22,073 - - - 22,073 - 22,073
Balance at 30 September
2016 35,142 (2,657) (4,028) 13,007 41,464 47 41,511
--------- ------------- --------- --------- ------------- ---------------- ---------
Profit for the year - - - 3,819 3,819 - 3,819
Other
comprehensive
income
Translation of foreign
operations - (512) - - (512) - (512)
-------------
Total comprehensive
income - (512) - 3,819 3,307 - 3,307
--------- ------------- --------- --------- ------------- ---------------- ---------
Transactions with
owners
Issuance of placing
shares 6,000 - - - 6,000 6,000
Balance at 31 March
2017 41,142 (3,169) (4,028) 16,826 50,771 47 50,818
--------- ------------- --------- --------- ------------- ---------------- ---------
GREEN AND SMART HOLDINGS PLC
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW
For the six months ended 31 March
Unaudited Unaudited Audited
Year
ended
Note 31-Mar-2017 31-Mar-2016 30-Sep-16
RM'000 RM'000 RM'000
CASH FLOW FROM OPERATING
ACTIVITIES
Profit before taxation 3,819 4,821 9,928
Adjustments for :
Amortisation of intangible
assets 27 27 55
Depreciation of plant
and equipment 383 21 147
Government grant income (6) (6) (13)
Share of loss of associate - - 156
Interest expenses 8 - 9
Cash flow from operating
activities before working
capital changes 4,231 4,863 10,282
Decrease/(increase) in
trade and other receivables (1,567) (15,586) 1,180
Increase in trade and
other payables 15,757 7,152 14,219
(Increase)/decrease in
amount owing by/to contract
customers - (5,548) (2,072)
(Increase)/decrease in
amount owing by related
parties (20,285) - (43,215)
------------ ------------ -----------
Cash flow used in/(from)
operating activities (1,864) (9,119) (19,606)
Interest paid (8) - (9)
NET CASH FLOW USED IN/
(FROM) OPERATING ACTIVITIES (1,872) (9,119) (19,615)
------------ ------------ -----------
CASH FLOW FOR INVESTING
ACTIVITIES
Purchase of plant and
equipment (5,375) (214) (15,260)
NET CASH FLOW USED IN
INVESTING ACTIVITIES (5,375) (214) (15,260)
------------ ------------ -----------
CASH FLOW FOR FINANCING
ACTIVITIES
Issuance of new ordinary
shares 6,000 4,000 19,416
Issuance of redeemable
convertible preference
shares - 4,000
Prepaid listing expenses - (2,549) -
Drawdown of term loans - 902 1,921
Repayment of term loans (391) - (507)
NET CASH FLOW FROM FINANCING
ACTIVITIES 5,609 2,353 24,830
------------ ------------ -----------
Net (decrease)/increase
in cash and cash equivalents (1,638) (6,980) (10,045)
Cash and cash equivalents
at the beginning of the
year 2,153 12,163 12,198
Cash and cash equivalents
at the end of the year 515 5,183 2,153
------------ ------------ -----------
GREEN AND SMART HOLDINGS PLC
NOTES TO THE FINANCIAL STATEMENT
For the six months ended 31 March
1. GENERAL INFORMATION
Green & Smart Holdings Plc was incorporated as a public
limited company in Jersey with its registered office at 12 Castle
Street, St. Helier, Jersey JE2 3RT, Channel Islands. The Company
has its primary listing on the AIM market, London Stock
Exchange.
Green & Smart Sdn. Bhd. is a company involved in research
and development, provision of professional engineering consultancy
and process design services in the area of industrial
biotechnology, pollution control and renewable energy; and
engineering, procurement and construction of various waste
treatment plants/systems; and development, commercialisation,
operation and maintenance of renewable energy plants. The Company
was incorporated and domiciled in Malaysia.
The financial information is presented in RM (Ringgit Malaysia)
which is the currency of the primary economic environment in which
the Group operates. All values are rounded to the nearest thousand
ringgit ("RM'000") except where otherwise indicated.
2. basis of preparation
The consolidated financial information for the six months period
ended 31 March 2017 and 31 March 2016 has been prepared in
accordance with IAS 34, Interim Financial Reporting. The
consolidated financial information is unaudited and does not
constitute statutory financial statements. The interim financial
information has been prepared on a historical cost basis, and fair
value method will be used if it is relevant.
The principal accounting policies used in preparing the interim
results are the same as those applied in the Group's financial
statements as at and for the year ended 30 September 2016, which
have been prepared in accordance with International Financial
Reporting Standards as adopted by the EU ("IFRS") issued by the
International Accounting Standards Board ("IASB"), including
related interpretations issued by the International Financial
Reporting Interpretations Committee ("IFRIC"). The auditors' report
on those accounts was unqualified but did not contain an emphasis
of matters paragraph in respect of the recoverability of amounts
owing by related parties and going concern.
A copy of the audited consolidated financial statements for the
year ended 30 September 2016 is available on the Company's
website.
The interim report for the six months ended 31 March 2017 was
approved by the Directors on 21 June 2017.
Going Concern
The interim financial information has been prepared on the going
concern basis, which assumes that the Group will continue to be
able to meet its liabilities as they fall due for the foreseeable
future. At 31 March 2017, the Group was owed RM75.1m by MGE and
CGE. As previously stated, the directors of Green & Smart are
actively monitoring the MGE and CGE receivables. The Group is a
shareholder in each of MGE and CGE and exercises significant
influence over those entities. During the period, the Group
received RM5.5m from these parties. Post period end, the Group has
received a further RM0.7m.
As a shareholder in both MGE and CGE, the Directors of Green
& Smart are monitoring the position closely including the
recent external funding that each of these groups have been awarded
and entered into, aside from their existing cash resources, which
totals RM84.2m from Malaysian government and established private
financial institutional sources, to be drawn down in 2017 and
2018.
Having reviewed the third-party funding arrangements now in
place for both MGE and CGE and having received assurances from the
management of MGE in relation to the timing of payments, the
directors consider the amounts owing to be recoverable in full and
that the outstanding receivable position will be progressively
rectified.
3. SEASONAL OR CYCLICAL FACTORS
There are no seasonal factors that materially affect the
operations of any company in the Group.
4. ITEMS OF AN UNUSUAL NATURE
There were no other unusual items affecting assets, liabilities,
equity, net income or cash flows due to their nature, size or
incidence for the financial period ended 31 March 2017.
5. MATERIAL CHANGES IN ACCOUNTING ESTIMATES
The preparation of unaudited interim financial report requires
management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported
amounts of assets and liabilities, income and expenses for the
current and its corresponding financial period under review. Actual
results may differ from these estimates.
In preparing the unaudited interim financial report, the
significant judgements made by the management in applying the
Group's accounting policies and the sources of estimates
uncertainty were consistent as those applied to the 2016 Audited
Financial Statements.
There were no changes in estimates of amounts of the Group that
may have a material effect on financial period ended 31 March
2017.
6. DIVIDS
No interim dividend was recommended by the directors during the
financial period under review.
7. GEOGRAPHICAL SEGMENTS
Operating segments are prepared in a manner consistent with the
internal reporting provided to the management by its chief
operating decision maker in order to allocate resources to segments
and to assess their performance. Currently Green & Smart Sdn
Bhd operates under one operating segment providing consulting and
contract services to customers in the renewable energy sector and
those requiring waste water treatment.
Information on geographical segments is not presented as Green
& Smart Sdn Bhd operates wholly in Malaysia where all of its
assets and liabilities are located.
8. SUBSEQUENT EVENTS
Post period, the Group entered into a 12-month loan of
approximately RM1.4m. Additionally, the Group successfully raised
GBP552,759 by way of a private placement of 6,141,772 shares.
9. CHANGES IN CONTINGENT LIABILITIES AND CONTINGENT ASSETS
There were no major contingent liabilities and contingent assets
that had arisen during the interim financial period as at 31 March
2017.
10. TAXATION
Green & Smart Sdn Bhd, was granted BioNexus Status by the
Government Of Malaysia, resulting in its being entitled to tax
exemption on its statutory business income derived from approved
activities over five consecutive years of assessment commencing
from the first year in which it generates statutory income from
relevant approved activities. Except for this, the average
corporate tax rate for the Subsidiaries is 24%.
11. EARNINGS PER SHARE
The financial information represents the financial information
of Green & Smart Holdings plc. Following the group
reorganisation, whereby Green & Smart Holdings Plc became the
new parent company of the Group. Accordingly, earnings per share
has been included based on the relevant number of shares in Green
& Smart Holdings Plc following the group reorganisation. The
calculation of earnings per share is based on the following
earnings and number of shares:
Audited
Year
Unaudited Unaudited ended
31-Mar-17 31-Mar-16 30-Sep-16
Profit after taxation
(RM' 000) 3,819 4,821 9,929
Weighted average shares
in issue for basic
earnings per share 282,875,148 276,666,667 276,666,667
Adjustments for:
Warrant instruments 1,383,333 - 536,702
Weighted average shares
in issue for diluted
earnings per share 284,258,481 276,666,667 277,203,369
Basic earnings per
share (RM - cent) 1.35 1.74 3.59
-------------- -------------- --------------
Diluted earnings per
share (RM - cent) 1.34 1.74 3.58
-------------- -------------- --------------
Diluted EPS amounts are calculated by dividing the profit or
loss for the period/year attributable to equity holders of the
Group by the weighted average number of ordinary shares outstanding
during the period/year plus the weighted average number of ordinary
shares that would be issued on conversion of all the dilutive
potential ordinary shares into ordinary shares.
In the six months ended 31 March 2016, a proforma earnings per
share figure was presented based on the number of shares in issue
on admission to AIM. Weighted average shares in issue for the year
ended 30 September 2016 has been re-presented to show the
information on a comparable basis.
12. CASH AND BANK BALANCES
For the purpose of the statements of cash flows, cash and cash
equivalents comprise the following: -
Audited
Unaudited Unaudited Year ended
31-Mar-17 31-Mar-16 30-Sep-16
RM' 000 RM' 000 RM' 000
Deposits with
licensed banks - - -
Cash and bank
balances 515 5,183 2,153
Cash and cash
equivalents 515 5,183 2,153
----------- ---------- -----------
13. STATED CAPITAL
31 March 2017
No. of RM'000
shares
Issued and Fully Paid-Up
As at 1 October 2016 276,666,667 35,142
Issue of new shares 10,761,367 6,000
31 March 2017 287,428,034 41,142
On 16 December 2016, pursuant to the execution of an Investment
Agreement dated the same day, MTDC subscribed for an addition
6,000,000 units of Redeemable Convertible Preference Shares of
RM0.10 each at an issue price of RM1.00 each in Green & Smart
Sdn Bhd. This thus resulted in the creation of a Share Premium of
RM5.4 million in the books of Green & Smart Sdn Bhd
MTDC initially acquired 6,000,000 redeemable convertible
preference shares of RM0.10 each at an issue price of RM1.00 each
("RCPS") in a wholly-owned subsidiary of the Company, Green &
Smart Sdn Bhd. Following the issue, the RCPS were converted into
10,761,367 new ordinary shares in the Company pursuant to a share
swap agreement also dated 19 December 2016 entered into between the
Company, Green & Smart Ventures Sdn Bhd and MTDC.
The Company had issued 10,761,367 new ordinary shares
("Subscription Shares") at a subscription price of 10.62 pence per
Subscription Share (the "Subscription"), being the closing price on
16 December 2016. On admission, the Subscription Shares ranked pari
passu in all respects with the existing ordinary shares. Following
admission, MTDC holds 19,476,367 shares in the Company, amounting
to 6.78% of the enlarged issued share capital of the Company.
14. PROPERTY, PLANT AND EQUIPMENT
Capital
Work
Furniture Office in Industrial Motor
& Fittings Renovation Equipment Progress Building Vehicle Total
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
At Cost
At 1 October
2015 75 124 25 11,542 - - 11,766
Addition 141 72 5,391 5,604
At 31 March
2016 75 265 97 16,933 - - 17,370
------------ ----------- ----------- ---------- ----------- --------- --------
Less: Accumulated
Depreciation
At 1 October
2015 3 4 9 - - 16
Addition 5 10 7 22
At 31 March
2016 8 14 16 - - - 38
------------ ----------- ----------- ---------- ----------- --------- --------
Carrying Amount
At 31 March
2016 67 251 81 16,933 - - 17,332
------------ ----------- ----------- ---------- ----------- --------- --------
Capital
Work
Furniture Office in Industrial Motor
& Fittings Renovation Equipment Progress Building Vehicle Total
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
At Cost
At 1 October
2015 75 124 25 11,542 - - 11,766
Addition 88 332 116 14,829 - 732 16,097
At 30 September
2016 163 456 141 26,371 - 732 27,863
------------ ----------- ----------- ---------- ----------- --------- --------
Less: Accumulated
Depreciation
At 1 October
2015 3 4 9 - - 16
Addition 12 31 17 - - 87 147
At 30 September
2016 15 35 26 - - 87 163
------------ ----------- ----------- ---------- ----------- --------- --------
Carrying Amount
at 30 September
2016 148 421 115 26,371 - 645 27,700
------------ ----------- ----------- ---------- ----------- --------- --------
Capital
Work
Furniture Office in Industrial Motor
& Fittings Renovation Equipment Progress Building Vehicle Total
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
At Cost
At 1 October
2016 163 456 141 26,371 - 732 27,863
Addition - 9 17 5,550 - - 5,576
Less : Reclass
to Industrial
Building - - - (21,217) 21,217 - -
At 31 March
2017 163 465 158 10,704 21,217 732 33,439
------------ ----------- ----------- ---------- ----------- --------- --------
Less: Accumulated
Depreciation
At 1 October
2016 15 35 26 - - 87 163
Addition 9 23 13 - 265 - 310
At 31 March
2017 24 58 39 - 265 87 473
------------ ----------- ----------- ---------- ----------- --------- --------
Carrying Amount
At 31 March
2017 139 407 119 10,704 20,952 645 32,966
------------ ----------- ----------- ---------- ----------- --------- --------
15. AMOUNT OWING BY / TO CONTRACT CUSTOMERS
Audited
Year
Unaudited Unaudited ended
31-Mar-2017 31-Mar-2016 30-Sep-2016
RM'000 RM'000 RM'000
Aggregate cost incurred
to date 83,145 29,261 63,918
Add: attributable
profits 28,729 12,870 22,159
-------------- ------------ ------------
111,874 42,131 86,077
Less: progress billings (111,473) (44,684) (85,676)
401 (2,553) 401
-------------- ------------ ------------
Represented by:
Amounts owing by contract
customers 551 - 551
Amounts owing to contract
customers (150) (2,553) (150)
16. AMOUNTS OWING BY RELATED PARTIES
Audited
Year
Unaudited Unaudited ended
31-Mar-2017 31-Mar-2016 30-Sep-2016
RM'000 RM'000 RM'000
Amounts owing by
associated undertakings 75,135 - 55,290
Amounts owing by
related parties 537 - 97
Amounts owing by
directors 35 - 35
75,707 - 55,422
------------ ------------ ------------
Amounts owing by associated undertakings comprise uncollected
balances due from Megagreen Energy and Concord Green Energy. The
group is a shareholder in each of Megagreen Energy and Concord
Green Energy and exercises significant influence over those
entities and the directors consider the amounts owing to be
recoverable in full.
17. TRADE AND OTHER PAYABLES
Audited
Year
Unaudited Unaudited ended
31-Mar-2017 31-Mar-2016 30-Sep-2016
RM'000 RM'000 RM'000
Trade payable 34,220 6,200 33,857
Other payable and
accruals 16,200 14,845 819
50,420 21,045 34,676
------------ ------------ ------------
The normal credit terms granted to the Group by the suppliers
are 90 days (2016: 90 days) from invoice date.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR DDGDLIBDBGRB
(END) Dow Jones Newswires
June 22, 2017 02:01 ET (06:01 GMT)
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