KAIZEN GLOBAL INVESTMENTS LIMITED
A.C.N 602 033 670
APPENDIX 3: HALF-YEAR REPORT for
The half-year ended 31 December 2021
RESULTS FOR ANNOUNCEMENT TO THE MARKET
The results for this half-year report are for the period of 1 July 2021 to 31 December 2021.
2020 | 2021 | Change | |
Revenue from ordinary activities | 891,029 | (76,959) | N/A% |
Profit (loss) from ordinary activities | 723,193 | (571,721) | N/A% |
before tax | |||
Profit (loss) from ordinary activities | 516,287 | (517,389) | N/A% |
after tax | |||
Previous period | Current period | Previous | |
Dividends | corresponding | ||
period | |||
Franking rate applicable: n/a | n/a | n/a | n/a |
Interim dividend | |||
Amount per security | n/a | n/a | n/a |
Franked amount per security | n/a | n/a | n/a |
31 December 2020 | 31 December 2021 | Previous | |
corresponding | |||
period | |||
Net tangible asset backing per | 1.1196$ | 1.4306 $ | 1.2514$ |
share post tax |
This report is based on the half-year financial report which has been subject to independent review by the Company's auditors, Stantons International Audit and Consulting Pty Ltd. Information required by the NSX Listing Rules is included. Information in this report should be read in conjunction with KGI's 30 June 2021 Annual Financial Report.
Financial Report for the Half-Year
Ended 31 December 2021
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Table of Contents | |
Directors' report to shareholders for the half-year ended 31 December 2021 .................................................... | |
Auditor's independence declaration .................................................................................................................... | 7 |
Statement of profit or loss and other comprehensive income for the half-year ended 31 December 2021 ........ | 8 |
Statement of financial position as at 31 December 2021 .................................................................................... | 9 |
Statement of changes in equity for the half-year ............................................................................................... | 10 |
Statement of cash flows for the half-year .......................................................................................................... | 11 |
Notes to the financial statements for the half-year ............................................................................................ | 12 |
Directors' declaration ......................................................................................................................................... | 15 |
Independent auditor's review report .................................................................................................................. | 16 |
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COMPANY DETAILS
KAIZEN GLOBAL INVESTMENTS LIMITED
ACN 602 033 670
DIRECTORS: | Jason Connor Grindlay / Connor Grindlay (Managing |
Director) | |
Simon Charles Winfield (Chairman) | |
Andre Lloyd Edmunds (Non-executive Director) | |
SECRETARY: | Lisa Grindlay |
FUND MANAGER: | Kaizen Capital Pty Limited |
ACN: 137 114 160 | |
REGISTERED OFFICE: | Suite 115 |
377 Kent Street | |
SYDNEY NSW 2000 | |
CONTACT DETAILS: | Suite 115 |
377 Kent Street | |
SYDNEY NSW 2000 | |
Telephone: (02) 7903 0007 | |
Email: info@kaizenglobalinvestments.com | |
Website: kaizenglobalinvestmens.com | |
SHARE REGISTRY: | Boardroom Pty Limited |
Grosvenor Place, Level 12, 225 George | |
Street, SYDNEY, NSW, 2000 | |
Telephone: 1300 737 760 | |
Facsimile: 1300 653 459 | |
AUDITOR: | Stantons International Audit and Consulting Pty Limited |
Level 36, Gateway 1 Macquarie Place | |
Sydney NSW 2000 | |
FUND ADMINISTRATOR: | T & D Associates |
No.108/1, | |
Rosmead Place, Colombo 7, Sri Lanka | |
Phone: 011 4734962 | |
Fax: 011 2692767 | |
Email: colombo@tndsrilanka.com |
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DIRECTORS' REPORT TO SHAREHOLDERS FOR THE HALF-YEAR ENDED 31 DECEMBER 2021
The Directors present their report on Kaizen Global Investments Limited (the Company, or KGI) for the financial period ended 31 December 2021. The Company is a public company listed on the National Stock Exchange of Australia (NSX). The following report complies with the requirements of the Corporations Act 2001.
PRINCIPAL ACTIVITIES
The principal activity of the company is to generate long-term capital appreciation while preserving capital. The Company invests substantially in Global Listed Equities.
OPERATIONS
For the half year ended 31 December 2021, the post-tax NTA per share of the Company increased by 18.12% to $1.4306, which we believe is conservative.
Additional tax charge of 5 cents per share
During the period, the company sold its private investment for a healthy gain and valuation uplift of over $0.27 per share (before tax). We intend to re-invest the proceeds into another opportunity and if we are able to do so, within a 2 year period post sale, there will be no taxation on the gain. We have taken written advice from a taxation specialist that supports this view. However, in order to be conservative, since we cannot 'guarantee' that we will make an acquisition within the 2 year period, we have taken a tax charge, of circa 5 cents per share this half, depressing the post-tax, NTA by that amount.
It is the board's view that there are opportunities for an acquisition and confidence that we will be able to make an acquisition within the 2 year window. Should this happen, we will have to immediately write back the tax charge by 5 cents per share resulting in an uplift of circa 5 cents per share. We want to make it clear that taking the tax charge this half is following the letter of the law in terms of conservatism.
The board is of the view that there is a high probability that KGI will make an acquisition and the 5 cent tax charge, therefore, will be reversed at some point. We'd, frankly, rather not write it down in the first place, then report an acquisition and report a tax gain on the news, but we don't make the reporting rules.
Investments are valued continuously to market value. For the half-year ended 31 December 2021, net investments were valued at $2,779,000.
FINANCIAL POSITION
The net asset value of the Company for the half-year ended 31 December 2021 was $4,291,733.
DIRECTORS
The names of the Directors at any time during or since the end of the half-year:
Connor Grindlay - Managing Director
Simon Charles Winfield - Executive Chairman
Andre Lloyd Edmunds - Non-Executive Director
DIVIDENDS
No dividends or distributions were recommended or declared during the half-year.
AUDITORS' INDEPENCE DECLARATION
A copy of the Auditors' independence declaration in accordance with section 307C of the Corporations Act 2001 is set out on page 6.
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Kaizen Global Investments Ltd. published this content on 07 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 March 2022 06:08:05 UTC.