NGE Capital : Preliminary final report - Appendix 4E

NGE CAPITAL LIMITED

APPENDIX 4E AND PRELIMINARY FINAL REPORT

Results for announcement to the market

For the year ended 31 December 2018

OPERATING AND FINANCIAL REVIEW

a) Financial Result

The profit of NGE Capital Limited (NGE or Company) and its controlled entities (Group) after income tax for the year was $7.034 million (2017: $4.681 million), comprising profit before income tax of $5.014 million (2017: $4.886 million) and recognition of a deferred tax asset of $2.020 million (2017: $ Nil).

b) Investment Performance

At year end NGE's principal assets comprised financial assets, mainly investments in listed equities, at market value of $26.507 million (2017: $18.654 million), and cash and cash equivalents of $2.095 million (2017: $5.296 million).

Net assets increased by $6.876 million to $30.501 million (2017: $23.625 million). Net tangible assets (NTA) increased by $4.856 million to $28.481 million. On a per share basis, NTA (before tax and net of all operating expenses) increased 21.4% to $0.765 (2017: $0.630). NTA per share after tax increased 30.0% to $0.819 (2017: $0.630).

All comparisons to year ended 31 December 2017.

Result Information

$'000

Up/Down

% change

Revenue from ordinary activities Profit/(loss) after tax for the year - ordinary activities

6,205 Up 2.0%

7,034 Up 44.0%

Total comprehensive income for the year after tax attributable to members of the parent entity

7,034 Up 50.3%

Dividend information

No dividends or distributions have been paid or provided during the year. There are no dividend or distribution reinvestment plans in operation.

Net Tangible Asset Information

31 Dec 2018 31 Dec 2017

Movement

Net tangible asset backing per ordinary share before tax

$0.765 $0.630

21.4%This report is based on the consolidated financial statements which are currently being audited by Grant Thornton.

Additional Appendix 4E disclosure requirements can be found in the attached report.

Page 1 of 14

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the year ended 31 December 2018

2018	2017
Notes	$'000	$'000
Revenue	3	305	735
Change in fair value of financial instruments held at fair value through	5,900	5,351
profit or loss
Employee benefits expense	(892)	(764)
Gain/(loss) from foreign exchange differences	39	(69)
Other expenses	(338)	(367)
Profit before income tax	5,014	4,886
Income tax benefit	5	2,020	-
Profit from continuing operations after income tax	7,034	4,886
(Loss) from discontinued operations after income tax	-	(205)
Other comprehensive income
Other comprehensive income for the year, net of tax	-	-
Other comprehensive income for the year	-	-
Total comprehensive income for the year attributable to members of
the Parent Entity	7,034	4,681
Cents	Cents
Basic and diluted earnings/(loss) per share
From continuing operations	18.83	12.65
From discontinued operations	-	(0.53)
Total	18.83	12.12
Page 2 of 14

NGE Capital Limited and Controlled Entities

Note: This statement should be read in conjunction with the accompanying notes.

Appendix 4E - 2018

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

For the year ended 31 December 2018

Note: This statement should be read in conjunction with the accompanying notes.

2018	2017
Notes	$'000	$'000
Assets
Cash and cash equivalents	2,095	5,296
Trade and other receivables	20	22
Financial assets held at fair value through profit or loss	26,770	18,655
Other assets	42	41
Deferred tax assets	5	2,020	-
Total Assets	30,947	24,014
Liabilities
Trade and other payables	429	379
Provisions	17	10
Total Liabilities	446	389
Net Assets	30,501	23,625
Equity
Issued capital	78,136	78,293
Reserves	-	11,377
Accumulated losses	(47,635)	(66,045)
Total Equity	30,501	23,625
Page 3 of 14

NGE Capital Limited and Controlled Entities

Appendix 4E - 2018

STATEMENT OF CHANGES IN EQUITY

For the year ended 31 December 2018

Share capital $'000

Accumulated losses $'000

Option reserveEquity component of convertible instrument Total equity

$'000

$'000 $'000

Balance at 31 December 2016

79,939

(70,716)

7,894

3,483 20,600

Total comprehensive income for the year

Prior year adjustment

Transactions with owners in their capacity as owners:

Share buy-back

- -4,681 - - 4,681

(10) - - (10)

(1,646)

-

-

- (1,646)

Balance at 31 December 2017

78,293

(66,045)

7,894

3,483 23,625

Total comprehensive income for the year

Transfer from reserves Prior year adjustment

Transactions with owners in their capacity as owners:

Share buy-back

- - -

7,034

-

• 11,377 (7,894)

(1)

- 7,034

(3,483)

--

- (1)

(157)

-

-

- (157)

Balance at 31 December 2018

78,136

(47,635)

-Note: This statement should be read in conjunction with the accompanying notes.

NGE Capital Limited and Controlled Entities

Appendix 4E - 2018

- 30,501

Page 4 of 14

CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended 31 December 2018

2018	2017
$'000	$'000
Cash Flow from Operating Activities
Payments to suppliers and employees	(1,150)	(914)
Payments for equity investments	(20,817)	(16,544)
Proceeds from sale of equity investments	18,754	9,083
Interest received	161	248
Dividends received	127	336
Underwriting income	10	128
Net cash (used in) operating activities	(2,915)	(7,663)
Cash Flow from Investing Activities
Loans advanced to joint venture	(144)	(35)
Proceeds from refund of security deposits	-	71
Net cash (used in) investing activities	(144)	(169)
Cash Flow from Financing Activities
Payments for share buy-back	(169)	(1,635)
Interest paid	(1)	-
Net cash (used in) financing activities	(170)	(1,635)
Net (decrease) in cash and cash equivalents held	(3,229)	(9,467)
Cash at beginning of period	5,296	14,816
Effect of exchange rates on cash holding in foreign currencies	28	(53)
Cash at end of period	2,095	5,296
Note: This statement should be read in conjunction with the accompanying notes.
NGE Capital Limited and Controlled Entities
Appendix 4E - 2018
Page 5 of 14

Notes