- Revenues increase 26% on the strength of waste treatment contracts with multinational corporate clients
On
Financial Highlights for the Fiscal Year Ended
- Total revenues increased by 26.1% year over year to approximately
$5.0 million for FY 2022 - Revenue from sales of circular products totaled approximately
$2.7 million for FY 2022, a year-over-year decrease of 2.2%, while revenue from waste treatment services reached approximately$2.2 million for FY 2022, a year-over-year increase of 95.1% - Gross margin was 64.3% for FY 2022 compared to 66.8% for FY 2021
- Net loss was approximately
$2.4 million for FY 2022 compared to a net loss of approximately $0.7 million for FY 2021 - Non-GAAP adjusted EBITDAi was approximately
$1.0 million for FY 2022 compared to approximately$1.5 million for FY 2021
"ESGL is a pioneer in terms of anchoring its waste treatment business around the core concepts of circularity and sustainability. Leveraging on the
As a result of ESGL’s activities in 2022, the company was able to help
- convert 81,000 Kgs of waste plastics into circular products such as pyrolysis oil that otherwise would have been incinerated in municipal waste incinerators; and
- sustainably treat 16,500 tons of hazardous sludge, ash, and wastewater to render it safe and create valuable green raw materials.
“Singapore urgently needs to increase waste treatment capacity with sustainable waste processing technology as our country is significantly underserved in treating its industrial output of hazardous waste. In addition, the recycling rates for waste plastics and ash and sludge both remain in the single digits. This creates a huge market opportunity for ESA’s circular solutions, and we have now established ourselves as a reliable partner for some of the most forward-looking companies operating in
“Looking beyond
ESGL’s management team has amassed approximately 100 years of relevant experience in waste management, the chemical supply chain and general management, including but not limited to corporate and financial management and services.
Financial Outlook for the Fiscal Year 2023 of ESGL
Based on the current contract backlog, ESGL expects total revenues and adjusted non-GAAP EBITDAiii for the fiscal year ending December 31, 2023 to reach approximately
This outlook reflects the current and preliminary views of ESGL on the market and operational conditions and is subject to various changes and uncertainties. As of
Use of Non-GAAP Financial Measures of ESGL
ESGL has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States ("GAAP"), including non-GAAP adjusted EBITDA. ESGL uses these non-GAAP financial measures internally in analyzing its financial results and for financial and operational decision-making purposes. ESGL believes that such non-GAAP financial measures provide useful information to investors and others about its operating results, enhance the overall understanding of its past performance and future prospects, and allow for greater visibility with respect to key metrics used by its management in its financial and operational decision-making.
Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with the consolidated financial statements of ESGL prepared in accordance with GAAP. Non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the data of ESGL. A reconciliation of the historical non-GAAP financial measures to the most directly comparable GAAP measures has been provided in the table captioned "Reconciliation of GAAP to Non-GAAP Measures" included at the end of this press release, and investors are encouraged to review the reconciliation.
The definition of the non-GAAP financial measure of ESGL included in this press release is presented below.
Non-GAAP Adjusted EBITDA
ESGL defines non-GAAP adjusted EBITDA as net income/(loss) before income tax benefits/(expenses), depreciation and amortization expenses, interest expenses, and adjusted to exclude the non-recurring expenses related to its going public transaction.
About Genesis Unicorn Capital Corp.
About Environmental Solutions Group Holdings Limited
Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this press release may be considered contain certain “forward-looking statements” within the meaning of “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “target,” “believe,” “expect,” “will,” “shall,” “may,” “anticipate,” “estimate,” “would,” “positioned,” “future,” “forecast,” “intend,” “plan,” “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Examples of forward-looking statements include, among others, statements made in this press release regarding the proposed transactions (the “Merger”) contemplated by the Agreement and Plan of Merger (the “Merger Agreement”) among the Company,
A further list and description of risks and uncertainties can be found in the Form 10-K and in the Registration Statement that has been filed with the
Important Information about the Transaction and Where to Find It
In connection with the proposed transactions described herein,
Participants in the Solicitation
The Company, ESGL and their respective directors, executive officers and employees and other persons may be deemed to be participants in the solicitation of proxies from the holders of shares of the Company’s common stock in respect of the proposed transaction described herein. Information about the Company’s directors and executive officers and their ownership of the Company’s common stock is set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended
No Offer or Solicitation
This communication is for informational purposes and is not intended to, and shall not, constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote of approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
The following financial statements are derived from the audited financial statements of ESGL for the years ended
Consolidated Statement of Profit or Loss and Other Comprehensive Income for the Financial Years ended
2022 | 2021 | |||||||
US$ | US$ | |||||||
Revenue | 4,992,034 | 3,958,367 | ||||||
Other income | 396,373 | 453,054 | ||||||
Cost of inventory | (1,093,194 | ) | (896,586 | ) | ||||
Logistics costs | (689,762 | ) | (419,543 | ) | ||||
Depreciation of property, plant and equipment | (1,661,403 | ) | (1,526,433 | ) | ||||
Amortization of intangible assets | (638,849 | ) | (331,268 | ) | ||||
Employee benefits expense | (933,124 | ) | (812,679 | ) | ||||
Finance expense | (246,359 | ) | (250,819 | ) | ||||
Other operating expenses | (2,509,528 | ) | (799,677 | ) | ||||
Loss before income tax | (2,383,812 | ) | (625,584 | ) | ||||
Income tax expense | (8,000 | ) | (43,000 | ) | ||||
Net loss | (2,391,812 | ) | (668,584 | ) | ||||
Other comprehensive income/(loss): | ||||||||
Items that will not be reclassified subsequently to profit or loss: | ||||||||
Net surplus on revaluation of leasehold land and buildings | 8,016,869 | 760,440 | ||||||
Items that may be reclassified subsequently to profit or loss: | ||||||||
Exchange difference on revaluation of leasehold land and buildings | 52,737 | (226,917 | ) | |||||
Total comprehensive income/(loss) | 5,677,794 | (135,061 | ) |
Consolidated Statement of Financial Position As of
2022 | 2021 | |||||||
US$ | US$ | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | 252,399 | 137,014 | ||||||
Trade and other receivables | 815,128 | 489,984 | ||||||
Inventories | 221,151 | 599,757 | ||||||
1,288,678 | 1,226,755 | |||||||
Non-current assets | ||||||||
Property, plant and equipment, net | 22,493,283 | 14,288,591 | ||||||
Intangible assets, net | 1,845,912 | 1,473,568 | ||||||
24,339,195 | 15,762,159 | |||||||
Total assets | 25,627,873 | 16,988,914 | ||||||
LIABILITIES | ||||||||
Current liabilities | ||||||||
Trade and other payables | 4,285,345 | 2,490,367 | ||||||
Lease liabilities | 185,764 | 193,280 | ||||||
Borrowings | 5,427,538 | 6,711,185 | ||||||
9,898,647 | 9,394,832 | |||||||
Non-current liabilities | ||||||||
Lease liabilities | 2,071,571 | 957,484 | ||||||
Borrowings (non-current) | 371,103 | 635,840 | ||||||
Deferred tax liabilities | 163,000 | 155,000 | ||||||
2,605,674 | 1,748,324 | |||||||
Total liabilities | 12,504,321 | 11,143,156 | ||||||
Net assets | 13,123,552 | 5,845,758 | ||||||
EQUITY | ||||||||
Share Capital | 10,000 | 10,000 | ||||||
Accumulated losses | (5,006,590 | ) | (2,614,778 | ) | ||||
Other reserves | 3,422,799 | 1,822,799 | ||||||
Exchange Reserves | (460,481 | ) | (513,218 | ) | ||||
Revaluation Surplus | 15,157,824 | 7,140,955 | ||||||
Total equity | 13,123,552 | 5,845,758 |
Consolidated Statement of Cash Flows for the Financial Years ended
2022 | 2021 | |||||||
US$ | US$ | |||||||
Cash flows from operating activities | ||||||||
Loss before income tax | (2,383,812 | ) | (625,584 | ) | ||||
Adjustments for: | ||||||||
- Impairment loss on receivable | 44,271 | - | ||||||
- Depreciation of property, plant and equipment | 1,661,403 | 1,526,433 | ||||||
- Amortisation of intangible assets | 638,849 | 331,268 | ||||||
- Interest income | (4 | ) | (76 | ) | ||||
- Interest expense | 246,359 | 250,819 | ||||||
- Gain on disposal of property, plant and equipment | (26,586 | ) | - | |||||
- Foreign exchange adjustment | 3,331 | 351,609 | ||||||
183,811 | 1,834,469 | |||||||
Changes in working capital: | ||||||||
- Trade and other receivables | (384,221 | ) | (17,378 | ) | ||||
- Inventories | 378,606 | (261,093 | ) | |||||
- Trade and other payables | 1,791,714 | 936,710 | ||||||
Net cash generated from operating activities | 1,969,910 | 2,492,708 | ||||||
Cash flows from investing activities | ||||||||
Purchase of property, plant and equipment | (502,677 | ) | (678,978 | ) | ||||
Proceeds from disposal of property, plant and equipment | 29,592 | - | ||||||
Additions to intangible assets | (1,011,193 | ) | (956,259 | ) | ||||
Interest received | 4 | 76 | ||||||
Net cash used in investing activities | (1,484,274 | ) | (1,635,161 | ) | ||||
Cash flows from financing activities | ||||||||
Repayment of bank borrowings | (1,537,495 | ) | (808,467 | ) | ||||
Shares issuance | 1,600,000 | 314,338 | ||||||
Repayments of lease liabilities | (186,397 | ) | (208,351 | ) | ||||
Interest paid | (246,359 | ) | (250,819 | ) | ||||
Net cash used in financing activities | (370,251 | ) | (953,299 | ) | ||||
Net increase/(decrease) in cash and bank balances | 115,385 | (95,752 | ) | |||||
Cash and cash equivalents | ||||||||
Beginning of the financial year | 137,014 | 232,766 | ||||||
End of the financial year | 252,399 | 137,014 |
GAAP and Non-GAAP EBITDA Reconciliation for the Financial Years ended
2022 | 2021 | |||||||
US$ | US$ | |||||||
Loss before income tax | (2,383,812 | ) | (625,584 | ) | ||||
Finance expense | 246,359 | 250,819 | ||||||
Depreciation of property, plant and equipment | 1,661,403 | 1,526,433 | ||||||
Amortization of intangible assets | 638,849 | 331,268 | ||||||
EBITDA | 162,799 | 1,482,936 | ||||||
Non-recurring expenses[i] | 813,701 | - | ||||||
EBITDA (adjusted for non-recurring expenses) | 976,500 | 1,482,936 |
[i] Non-recurring expenses mainly due to expenses incurred for the SPAC merger transaction and they are not expected to repeat for at least the next two years.
Investor / Media Contact:
CEO,
(646) 652 7185
crocker.coulson@aummedia.org
ESGL Contact:
Chief Sustainability and Growth Officer
(65) 6653 2299
lawrence.law@env-solutions.com
President & CFO
(609) 466-0792
Samuel.lui@genesisunicorn.com
i Adjusted EBITDA excludes non-recurring expense of
ii Expected full capacity build to 195K tons is contingent upon an investment in capital expenditure of
iii Adjusted non-GAAP EBITDA excludes non-recurring IPO expense.
iv Signed contract value is derived from customer forecasts.
Source:
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