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RANGE INTERNATIONAL LIMITED Annual Report 2016
65662_rns_2017-02-27_5dfe95e4-870e-42bc-bb47-dee9bea0d305.pdf
Annual Report
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ASX Announcement (ASX:RAN)
28 February 2017
Appendix 4E – Year ended 31 December 2016
Range International Limited ('Range' or 'Company'), manufacturer of Re>Pal™ recycled plastic pallets, presents its Unaudited Preliminary Final Report (Appendix 4E). This report reflects the financial performance and financial position of the consolidated entity ("Range" or "Group") for the year ended 31 December 2016.
Summary
Throughout the year ending 31 December 2016 Range operated 2 production lines at less than full capacity while conducting extensive product development and testing. Management's focus has been on the rapid expansion of our production and distribution capacity with our new production facility in East Java, Indonesia commencing production in January, 2017.
| US'000 | US'000 | YOY % | |
|---|---|---|---|
| Sales revenue | 462 | 347 | 33% |
| Cost of goods sold | (1,885) | (1,516) | 24% |
| Gross loss | (1,423) | (1,169) | |
| IPO costs expensed | (2,836) | - | |
| Other expenses | (5,684) | (4,751) | |
| Net loss after tax | (9,943) | (5,920) |
The Company's results for the reporting period reflect the following:
- further development of the ThermoFusionTM production process and design of new pallets
- $2.8M in costs associated with the initial public offering
- $2.8M in employee expenses associated with the appointment of the Board, new key management personnel and support staff
- $2.6M in professional fees (legal and other advisory) mainly incurred in relation to the pre-IPO capital raising and the acquisition of the ThermoFusionTM intellectual property
Commentary
Key highlights for the year and period to date are as follows:
- admission to ASX on 21 July 2016, raising US$37.5M in new equity
- US$10.4M invested to acquire the ThermoFusionTM intellectual property
- US$12.3M capital expenditure in new production property, plant and equipment
- US$23.9M cash on hand as at 31 December 2016 for further investment and working capital
- successful commencement of production at new Pasuruan facility in January 2017
- second ThermoFusionTM machine currently being installed at Pasuruan and scheduled to be operational in March 2017
- new Re>PalTM pallet designs with increased functionality scheduled to be released in Q2 2017
The Group is rapidly expanding our production and distribution capacity with our new production facility in East Java, Indonesia already operational. This new facility is on budget and on track with 10 production lines scheduled to be producing Re>PalTM pallets in Indonesia by the end of 2017.
The Group now has three production lines operating in Indonesia. A fourth production line is currently being installed and is expected to be operational in March this year. This is in line with the objectives stated in the Prospectus and represents key milestones as we look to build our capacity to satisfy customer needs and our growing sales targets.
The Company plans to release its audited financial report for the year ended 31 December 2016 on 31 March 2017.
Range International Managing Director Lars Amstrup said:
"We have been able to secure a new production facility and produce pallets from the first line in the new factory in less than six months. The Group is excited about our sales prospects and has grown its sales team, both in Indonesia and throughout the Asian region, as well as developed a new range of pallets which we plan to release in the second quarter of 2017."
Lars Amstrup Managing Director/CEO
About Range International:
Range is a manufacturer of plastic pallets. Our ThermoFusion™ technology allows Range to make plastic pallets from 100% recycled mixed waste plastic at a price that is competitive with wood pallets. Range currently has three production lines operating in Indonesia and sells its pallets under the brand Re>Pal™. Range is scaling up its operations in Indonesia. In the medium term, the Company's goal is to establish a global production footprint and sales distribution network.
Media: [email protected]
Investor Relations: [email protected]
Appendix 4 E – Unaudited Preliminary Final Report
For the year ended 31 December 2016
Appendix 4E Unaudited Preliminary Financial Report - 31 December 2016
ABN 22 611 998 200
| Current reporting period : | year ended 31 December 2016 |
|---|---|
| Previous corresponding period : | year ended 31 December 2015 |
Results for announcement to the market
| Percentagechange | Amount | ||
|---|---|---|---|
| % | US$'000 | ||
| Revenue from ordinary activities | increase | 33% to | 462 |
| Earnings before interest, tax, depreciation &amortisation (EBITDA) | decrease | 74% to | (9,366) |
| Earnings before interest and tax (EBIT) | decrease | 70% to | (10,054) |
| Net loss after income tax from ordinary activitiesattributable to members | decrease | 69% to | (9,935) |
| No dividend has been determined for the year ended 31 December 2016 |
Net tangible assets
| Current yearcents per security | Previouscorresponding yearcents per security | |
|---|---|---|
| Net tangible assets per security (US cents) | 25 cents | 4 cents |
Control gained or lost over entities
On 25 June 2016, Range International Limited and its controlled entities (Range or the Group) completed a transaction with the existing shareholders of Range International Holdings Limited (RIHL). As a result of the transaction, Range obtained 100% legal ownership of RIHL. This transaction has been viewed as similar to a business combination in which the legal subsidiary obtained control of the legal parent, a reverse acquisition. The impacts of this are:
- 〉 The results of the year ended 31 December 2016 shown in the income statements reflect RIHL only for the period from 1 January 2016 to 24 June 2016 and the consolidated Range and RIHL results post transaction for the period 25 June 2016 to 31 December 2016;
- 〉 The results of the year ended 31 December 2015 in the income statements reflect RIHL;
- 〉 The cash flows for the year ended 31 December 2016 represents the cash flows of RIHL only for the period from 1 January 2016 to 24 June 2016 and the consolidated Range and RIHL results post transaction for the period 25 June 2016 to 31 December 2016. The comparative information for 31 December 2015 represents the cash flows of RIHL; and
- 〉 The statement of financial position as at 31 December 2015 reflects the balances of RIHL only while the statement of financial position as at 31 December 2016 reflects the balances of the post-transaction consolidated Group including Range and RIHL.
Range was admitted to the Official List of the Australian Securities Exchange (ASX) on 21 July 2016 under the ASX Code: RAN.
Associates and joint venture entities
Range held no interests in associates or joint ventures during the year ended 31 December 2016.
This report has been prepared in accordance with AASB Standards, other AASB authoritative pronouncements and Interpretations or other standards acceptable to ASX. No other standards have been applied.
This report and the accounts upon which the report is based use the same accounting policies.
This report gives a true and fair view of the matters disclosed.
This report is based on accounts which are in the process of being audited.
The entity has a formally constituted audit committee.
The results for announcement to the market should be read in conjunction with the attached unaudited preliminary financial report for the year ended 31 December 2016.
Sign here: _________________________________________________________
Gillian Nairn Company Secretary
Date: 28 February 2017
Commentary on Results
For the year ended 31 December 2016
Range International Limited (referred to as Range) is a for-profit company limited by shares incorporated in the Commonwealth of Dominica and re-domiciled to Australia whose shares are publicly traded on the Australian Securities Exchange. The nature of the operations and principal activities of Range and its subsidiaries (referred to as 'the Group') are described in the segment information in Note 6.
This financial report has been prepared in accordance with International Financial Reporting Standards, other authoritative pronouncements and Interpretations of the Australian Accounting Standards Board and the Corporations Act 2001. This financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the Interim Financial Report for the period ended 30 June 2016 and any public announcements made by Range International Limited during the reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.
These unaudited financial statements present the consolidated results of the Company and its subsidiaries for year ended 31 December 2016. The transaction between Range and the existing shareholders of Range International Holdings Limited (RIHL) has been viewed as similar to a business combination in which the legal subsidiary, RIHL, obtained control of the legal parent, the Company, a reverse acquisition. The impact of this transaction is discussed in more detail in Note 1.
Estimates, assumptions and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Key strategic events:
- US$37.5m capital raising and successful listing on the ASX
- US$10.4m invested to acquire the ThermoFusionTM intellectual property
- US$12.3m capital expenditure in new production property, plant and equipment
- First ThermoFusionTM machine installed in Pasuruan and currently operational
- Second ThermoFusionTM machine currently being installed and scheduled to be operational in March 2017
- New Re>PalTM pallet designs with increased functionality scheduled to be released in the second quarter of 2017
- Recruitment of key management personnel and Asia wide sales force to execute the Group strategy
- US$23.9m cash on hand at 31 December 2016 for further investment and working capital
The Group is rapidly expanding its production and distribution capacity with the new operating production facility in East Java, Indonesia. This new facility is on budget and on track with 10 production lines scheduled to be producing Re>PalTM pallets in Indonesia by the end of 2017. Having recently commissioned the first production line at the new facility, the Group now has three production lines operating in Indonesia. A fourth production line is currently being installed and is expected to be operational in March this year. This is in line with the objectives stated in the Prospectus and represents key milestones as the Group look to build its capacity to satisfy customer needs and growing sales targets.
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2016 – RANGE INTERNATIONAL LIMITED AND ITS CONTROLLED ENTITIES
| Consolidated Income Statement 6 | |
|---|---|
| Consolidated Statement of Comprehensive Income7 | |
| Consolidated Statement of Financial Position 8 | |
| Consolidated Statement of Cash Flows 9 | |
| Consolidated Statement of Changes in Equity 10 | |
| Notes to the Consolidated Financial Statements 11 |
Consolidated Income Statement
For the year ended 31 December 2016
| Consolidated | |||||
|---|---|---|---|---|---|
| NOTE | 31 Dec 2016#US$'000 | 31 Dec 2015#US$'000 | |||
| Sales revenue | 462 | 347 | |||
| Cost of sales | (1,885) | (1,516) | |||
| Gross loss | (1,423) | (1,169) | |||
| Other income | 111 | 5 | |||
| Employee benefits | (2,722) | (1,103) | |||
| Professional fees | (2,585) | (577) | |||
| IPO expenses | (2,836) | - | |||
| Other expenses | (1,862) | (1,776) | |||
| Foreign exchange gain/(loss) | 1,374 | (1,300) | |||
| Loss before tax | (9,943) | (5,920) | |||
| Tax expense | - | - | |||
| Loss for the year after tax | (9,943) | (5,920) | |||
| Attributable to: | |||||
| Non-controlling interest | (8) | (36) | |||
| Members of the parent | (9,935) | (5,884) | |||
| (9,943) | (5,920) | ||||
| Loss per share (cents per share) | |||||
| - basic loss per share | 4 | (8.66) | (9.29) | ||
| - diluted loss per share | 4 | (8.66) | (9.29) |
#As set out in note 1 to the financial statements, as a result of the transaction with the existing shareholders of RIHL, the comparative information for 31 December 2015 represents the financial performance of RIHL. The income statement for the year ended 31 December 2016 represents the results of RIHL only for the period from 1 January 2016 to 24 June 2016 and the consolidated Range and RIHL results post transaction for the period 25 June 2016 to 31 December 2016.
The above consolidated income statement should be read in conjunction with the Interim Financial Report for the period ended 30 June 2016 and any public announcements made by Range International Limited during the reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2016
| Consolidated | ||
|---|---|---|
| 31 Dec 2016#US$'000 | 31 Dec 2015#US$'000 | |
| Loss for the year after tax | (9,943) | (5,920) |
| Other comprehensive (loss)/income | ||
| -Remeasurements of post employment obligations | (119) | - |
| -Exchange differences on translating foreign controlled entities | (1,358) | 647 |
| Total comprehensive loss for the year | (11,420) | (5,273) |
| Comprehensive loss attributable to: | ||
| Non-controlling interest | (8) | (36) |
| Members of the parent | (11,412) | (5,237) |
| (11,420) | (5,273) |
#As set out in note 1 to the financial statements, as a result of the transaction with the existing shareholders of RIHL, the comparative information for 31 December 2015 represents the financial performance of RIHL. The statement of comprehensive income for the year ended 31 December 2016 represents the results of RIHL only for the period from 1 January 2016 to 24 June 2016 and the consolidated Range and RIHL results post transaction for the period 25 June 2016 to 31 December 2016.
The above consolidated statement of comprehensive income should be read in conjunction with the Interim Financial Report for the period ended 30 June 2016 and any public announcements made by Range International Limited during the reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.
Consolidated Statement of Financial Position
As at 31 December 2016
| Consolidated | |||
|---|---|---|---|
| NOTE | 31 Dec 2016# | 31 Dec 2015# | |
| US$'000 | US$'000 | ||
| ASSETS | |||
| Current assets | |||
| Cash and cash equivalents | 23,947 | 4,115 | |
| Trade and other receivables | 90 | 177 | |
| Inventories | 248 | 24 | |
| Other current assets | 429 | 111 | |
| Total current assets | 24,714 | 4,427 | |
| Non-current assets | |||
| Intangible assets | 10,533 | - | |
| Property, plant and equipment | 15,961 | 4,235 | |
| Other non-current assets | 191 | - | |
| Total non-current assets | 26,685 | 4,235 | |
| Total assets | 51,399 | 8,662 | |
| LIABILITIES | |||
| Current liabilities | |||
| Trade and other payables | 1,140 | 289 | |
| Provisions | 2,640 | 2,269 | |
| Total current liabilities | 3,780 | 2,558 | |
| Non-current liabilities | |||
| Amount due to third parties | - | 195 | |
| Provisions | 221 | 71 | |
| Total non-current liabilities | 221 | 266 | |
| Total liabilities | 4,001 | 2,824 | |
| Net assets | 47,398 | 5,838 | |
| EQUITY | |||
| Contributed equity2.1 | 98,341 | 17,652 | |
| Restructure reserve2.2 | (27,891) | - | |
| Share based payment reserve2.3 | 106 | - | |
| Accumulated losses2.4 | (22,580) | (12,526) | |
| Currency translation reserve2.5 | (578) | 780 | |
| Non-controlling interests2.6 | - | (68) | |
| Total equity | 47,398 | 5,838 |
#As set out in note 1 to the financial statements, as a result of the transaction with the existing shareholders of RIHL, the comparative information as at 31 December 2015 represents the financial position of RIHL only. The statement of financial position as at 31 December 2016 represents the consolidated position of Range and RIHL post transaction.
The above consolidated statement of financial position should be read in conjunction with the Interim Financial Report for the period ended 30 June 2016 and any public announcements made by Range International Limited during the reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.
Consolidated Statement of Cash Flows
For the year ended 31 December 2016
| Consolidated | ||||
|---|---|---|---|---|
| NOTE | 31 Dec 2016# | 31 Dec 2015# | ||
| US$'000 | US$'000 | |||
| Cash flows from operating activities | ||||
| Receipts from customers | 447 | 309 | ||
| Payments to suppliers and employees | (7,630) | (3,301) | ||
| Interest received | 111 | 5 | ||
| Net cash used in operating activities | (7,072) | (2,987) | ||
| Cash flows from investing activities | ||||
| Payments for property, plant and equipment | (12,249) | (267) | ||
| Payments for intangible assets | (4,011) | - | ||
| Net cash used in investing activities | (16,260) | (267) | ||
| Cash flows from financing activities | ||||
| Net Proceeds from issue of shares, net of transaction costs | 43,284 | 7,095 | ||
| Repayment of amount due to shareholder | - | (351) | ||
| Non-controlling interest share buy-back2.6 | (16) | - | ||
| Net cash inflow from financing activities | 43,268 | 6,744 | ||
| Net increase in cash and cash equivalents | 19,936 | 3,490 | ||
| Cash and deposits, net of overdrafts, at beginning of the year | 4,115 | 493 | ||
| Effect of exchange rate changes | (104) | 132 | ||
| Cash at end of the year | 23,947 | 4,115 |
#As set out in note 1 to the financial statements, as a result of the transaction with the existing shareholders of RIHL, the comparative information for 31 December 2015 represents the cash flows of RIHL. The cash flows for year ended 31 December 2016 represents the cash flows of RIHL only for the period from 1 January 2016 to 24 June 2016 and the consolidated Range and RIHL results post transaction for the period 25 June 2016 to 31 December 2016.
The above consolidated statement of cash flows should be read in conjunction with the Interim Financial Report for the period ended 30 June 2016 and any public announcements made by Range International Limited during the reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.
Consolidated Statement of Changes in Equity
For the year ended 31 December 2016
| Sharebased | |||||||
|---|---|---|---|---|---|---|---|
| paymen | Currency | Non | |||||
| Contributed equity | Restructure reserve | treserve | Accumulated losses | Translation reserve | controlling interest | Totalequity | |
| US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | |
| 31 December 2015 | |||||||
| Opening balance at1 January 2015 | 8,329 | - | - | (6,642) | 133 | (32) | 1,788 |
| Loss for the year | - | - | - | (5,884) | - | (36) | (5,920) |
| Other comprehensive | |||||||
| incomeTotal comprehensive | - | - | - | - | 647 | - | 647 |
| loss | - | - | - | (5,884) | 647 | (36) | (5,273) |
| Equity Transactions:Issue of ordinary shares | 9,323 | - | - | - | - | - | 9,323 |
| Closing balance at | |||||||
| 31 December 2015# | 17,652 | - | - | (12,526) | 780 | (68) | 5,838 |
| 31 December 2016Opening balance at | |||||||
| 1 January 2016 | 17,652 | - | - | (12,526) | 780 | (68) | 5,838 |
| Loss for the yearOther comprehensive | - | - | - | (9,935) | - | (8) | (9,943) |
| income | - | - | - | (119) | (1,358) | - | (1,477) |
| Total comprehensive | |||||||
| loss | - | - | - | (10,054) | (1,358) | (8) | (11,420) |
| Equity Transactions: | |||||||
| Issue of ordinary shares | 54,014 | - | - | - | - | - | 54,014 |
| Transaction costs | (1,125) | - | - | - | - | - | (1,125) |
| Reverse existing capitalresulting from | |||||||
| restructure | (34,165) | - | - | - | - | - | (34,165) |
| Ordinary shares issuedto existing shareholders | 61,965 | - | - | - | - | - | 61,965 |
| Reserve from | |||||||
| restructure | - | (27,891) | - | - | - | 76 | (27,815) |
| Share based paymenttransactions | - | - | 106 | - | - | - | 106 |
| Closing balance at | |||||||
| 31 December 2016# | 98,341 | (27,891) | 106 | (22,580) | (578) | - | 47,398 |
#As set out in note 1 to the financial statements, as a result of the transaction with the existing shareholders of RIHL, the comparative information for 31 December 2015 represents the financial performance of RIHL. The statement of changes in equity for the year 31 December 2016 represents the results of RIHL only for the period from 1 January 2016 to 24 June 2016 and the consolidated Range and RIHL results post transaction for the period 25 June 2016 to 31 December 2016 and the equity transactions arising from the restructure.
The above consolidated statement of changes in equity should be read in conjunction with the Interim Financial Report for the period ended 30 June 2016 and any public announcements made by Range International Limited during the reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.
For the year ended 31 December 2016
1. Capital Structure
Capital management objectives
Range's objectives when managing capital are to
- 〉 safeguard its ability to continue as a going concern so that it can continue to provide returns for shareholders and benefits for other stakeholders; and
- 〉 maintain an optimal capital structure to reduce the cost of capital.
Corporate restructure
Prior to 21 June 2016, the Company was an investment holding company domiciled in the Commonwealth of Dominica, which at 31 December 2015 owned 24.91% in Range International Holdings Limited (RIHL) a company established in Singapore that conducted 100% of the operations of the business. The investment reduced to 17.38% in June 2016 due to the capital raising referred to in Note 2. The Company's only shareholder was RIHL's founder and majority shareholder, Matthew Darby.
The Company's place of domicile migrated to Australia on 21 June 2016. On 25 June 2016, a transaction occurred whereby the Company acquired the remaining 82.62% of RIHL and became the legal parent company of RIHL. The transaction occurred by way of share exchange whereby the existing shareholders of RIHL exchanged their shares for shares in the Company.
As a result of the share exchange transaction, the Company obtained 100% of the legal ownership of RIHL and the remaining previous shareholders of RIHL became shareholders of the Company.
Business combinations
When considering how to account for the above share exchange transaction, it is the view of the Group that the transaction was similar to a business combination in which the legal subsidiary obtained control of the legal parent, a reverse acquisition. In these types of transactions, the new group would be presented as a continuation of the legal subsidiary and an acquisition of the legal parent at the date of the transaction. As such, the consolidated financial statements of the Company have been presented as a continuation of the profit and loss, financial position and cash flows of RIHL at the pre-transaction values.
These financial statements include:
- 〉 The results of the year ended 31 December 2016 shown in the income statements reflect RIHL only for the period from 1 January 2016 to 24 June 2016 and the consolidated Range and RIHL results post transaction for the period 25 June 2016 to 31 December 2016;
- 〉 The results of the year ended 31 December 2015 in the income statements reflect RIHL;
- 〉 The cash flows for year ended 31 December 2016 represents the cash flows of RIHL only for the period from 1 January 2016 to 24 June 2016 and the consolidated Range and RIHL results post transaction for the period 25 June 2016 to 31 December 2016. The comparative information for 31 December 2015 represents the cash flows of RIHL; and
- 〉 The statement of financial position as at 31 December 2015 reflects the balances of RIHL only while the statement of financial position as at 31 December 2016 reflects the balances of the post-transaction consolidated Group including Range and RIHL.
2. Equity and Reserves
2.1 Share Capital
| Consolidated | |||
|---|---|---|---|
| Number ofshares'000 | 2016US$'000 | 2015US$'000 | |
| Movement in ordinary shares on issue | |||
| Opening balance | 163,409 | 17,652 | 8,329 |
| Issue of ordinary shares pre-restructure (a) | 70,832 | 16,514 | - |
| Issue of ordinary shares post-restructure (b) | 50,000 | 37,500 | - |
| Transaction costs capitalised (b) | - | (1,125) | - |
| Ordinary shares issued to existing shareholders (c) | 100,000 | 61,965 | 9,323 |
| Reverse existing capital resulting from restructure (c) | (234,241) | (34,165) | - |
| Closing balance | 150,000 | 98,341 | 17,652 |
Share capital is classified as equity. Incremental costs directly attributable to the issuance of new ordinary shares are deducted against the share capital account.
(a) Issue of ordinary shares pre-restructure
During March 2016, pre-IPO capital of $9.9 million was raised by RIHL to fund existing liabilities, working capital, investment in production lines and the purchase of intellectual property (IP). On 29 April 2016, the Company issued shares valued at $6.5 million as part of the purchase consideration for IP from Range Industries Limited (a New Zealand registered entity).
For the year ended 31 December 2016
2.1 Share Capital (continued)
(b) Issue of ordinary shares post-restructure
On 14 June 2016, the Company lodged its prospectus with ASIC for an Initial Public Offering ("IPO") of 50 million ordinary shares at US$0.75 (A$1.00) per share. The offer closed on 6 July 2016 with the Company successfully admitted to the Official List of the Australian Securities Exchange under the ASX code "RAN" on 21 July 2016. Total transaction costs amounted to $3.9m, of this amount $1.13m has been recognised in equity with the balance of costs expensed under 'IPO expenses'.
(c) Ordinary shares issued to existing shareholders
As described above on 25 June 2016 the Company acquired the remaining 82.62% of RIHL and became the legal parent company of RIHL. As a result of the transaction, the share capital of RIHL at the time of the transaction ($34.2 million) has been replaced with the legal share capital of the Company.
Ordinary shares are fully-paid and have no par value. They carry one vote per share and the right to dividends. They carry no special terms or conditions affecting income or capital entitlements of the shareholders and are classified as equity.
Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds. There are no shares authorised for issue that have not been issued at reporting date.
Reserves
2.2 Restructure reserve
| Consolidated | ||
|---|---|---|
| 2016 | 2015 | |
| US$'000 | US$'000 | |
| Opening balance | - | - |
| Difference in RIHL share capital and fair value of shares issued to existing shareholders | ||
| on restructure | (27,800) | - |
| Acquisition of non-controlling interest | (91) | - |
| Closing balance | (27,891) | - |
The restructure reserve is the difference between the amount of RIHL's share capital and the fair value of shares exchanged as part of the corporate restructure discussed in note 1. This has been recognised in an equity account called restructure reserve.
2.3 Share-based payment reserve
| Consolidated | ||
|---|---|---|
| 2016 | 2015 | |
| US$'000 | US$'000 | |
| Opening balance | - | - |
| Share based payment expense | 106 | - |
| Closing balance | 106 | - |
The share-based payments reserve is used to recognise the grant date fair value of options issued to employees but not exercised.
For the year ended 31 December 2016
2.4 Accumulated losses
Movements in accumulated losses were as follows:
| Consolidated | ||
|---|---|---|
| 2016 | 2015 | |
| US$'000 | US$'000 | |
| Opening balance | (12,526) | (6,642) |
| Remeasurements of post employment obligations | (119) | - |
| After tax (loss) attributable to the equity holders of the parent during the year | (9,935) | (5,884) |
| Closing balance | (22,580) | (12,526) |
2.5 Foreign currency translation reserve
| Consolidated | |||
|---|---|---|---|
| 2016 | 2015 | ||
| US$'000 | US$'000 | ||
| Opening balance | 780 | 133 | |
| Exchange differences on translating foreign controlled entities | (1,358) | 647 | |
| Closing balance | (578) | 780 |
The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:
〉 assets and liabilities are translated at the closing exchange rates at the reporting date;
- 〉 income and expenses are translated at average exchange rates (unless the average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated using the exchange rates at the dates of the transactions); and
- 〉 all resulting currency translation differences are recognised in other comprehensive income and accumulated in the currency translation reserve.
These currency translation differences are reclassified to profit or loss on disposal or partial disposal of the entity giving rise to such reserve.
2.6 Transactions with non-controlling interests
| Consolidated | ||
|---|---|---|
| 2016US$'000 | 2015US$'000 | |
| Opening balance | (68) | (32) |
| Loss attributable to the non-controlling interest during the year | (8) | (36) |
| Value acquired through share buy back | 76 | - |
| Closing balance | - | (68) |
This reserve is used to record the differences which may arise as a result of transactions with non-controlling interests.
On 2 June 2016, the Company entered into a purchase agreement whereby it agreed to acquire a 1% shareholding that Eva Akunia held in PT Enviropallets Bali for a cash payment of $15,851.
3. Dividends
The Board of Directors resolved not to declare a dividend for the year ended 31 Dec 2016 (31 Dec 2015: nil).
For the year ended 31 December 2016
4. Loss per share
| Consolidated | |||
|---|---|---|---|
| 2016 | 2015 | ||
| Loss attributable to ordinary equity holders of the parent ($'000)Weighted average number of shares used in calculation of basic LPS | (9,943) | (5,920) | |
| (shares, '000)Weighted average number of shares used in calculation of diluted LPS | 114,873 | 63,696 | |
| (shares, '000) | 114,873 | 63,696 | |
| Basic LPS (cents per share) | (8.66) | (9.29) | |
| Diluted LPS (cents per share) | (8.66) | (9.29) |
Calculation of Loss per share
Basic loss per share (LPS)
Basic LPS is calculated by dividing the loss attributable to members of the parent by the weighted average number of ordinary shares outstanding.
Diluted loss per share
Diluted LPS is calculated by dividing the loss attributable to member of the parent by the weighted average number of ordinary shares outstanding after adjustment for the effects of all dilutive potential ordinary shares.
5. Subsidiaries
The Group's principal subsidiaries at 31 December 2016 are set out below. Unless otherwise stated, they have share capital consisting solely of ordinary shares that are held directly by the Group, and the proportion of ownership interests held equals the voting rights held by the Group. The country of incorporation or registration is also their principal place of business.
| Ownership interest held by the Group | |||
|---|---|---|---|
| Legal entity | Country of incorporation | 2016 | 2015 |
| % | % | ||
| Range International Holdings Limited | Singapore | 100% | - |
| PT Enviropallets Bali | Indonesia | 100% | - |
| Re-Pal Australia Pty ltd | Australia | 100% | - |
Accounting for Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to or has rights to, variable returns from its involvement with the entity and has the liability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. The accounting policies of subsidiaries have been changed when necessary to align them with the policies adopted by the Group. Losses applicable to the non-controlling interests in a subsidiary are allocated to the non-controlling interests even if doing so causes the non-controlling interests to have a deficit balance.
Accounting for Investments in a subsidiary
Investments in a subsidiary are carried at cost less accumulated impairment losses in the Company's statement of financial position. On disposal of such investments, the difference between disposal proceeds and the carrying amounts of the investments are recognised in profit or loss.
Business combinations
Business combinations are accounted for using the acquisition method as at the acquisition date, which is the date on which control is transferred to the Group. The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are generally recognised in the income statement. Any contingent consideration payable is recognised at fair value at the acquisition date and included in the consideration transferred. If the contingent consideration is classified as equity, it is not remeasured and settlement is accounted for within equity. Otherwise, subsequent changes to the fair value of the contingent consideration are recognised in the income statement. See Note 1 for further details on business combinations during the year.
Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the acquiree's net assets in the event of liquidation are measured either at fair value or at the non-controlling interests' proportionate share of the recognised amounts of the acquiree's identifiable net assets, at the acquisition date. The measurement basis taken is elected on a transaction-by-transaction basis. All other non-controlling interests are measured at acquisition-date fair value, unless another measurement basis is required by IFRS.
Costs related to the acquisition, other than those associated with the issue of debt or equity securities, that the Group incurs in connection with a business combination are expensed as incurred.
For the year ended 31 December 2016
6. Segment information
Identification of reportable segments.
The Group has determined operating segments based on the information provided to the Managing Director/CEO (Chief Operating Decision Maker).
The Group operates predominately in one business segment, being the manufacture and sale of plastic pallets. There is no material difference between the financial information presented to the Managing Director/CEO and the financial information presented in this report.
Sales revenue by geographic location
Revenue obtained from external customers is attributed to individual countries based on the location of the customer. The majority of sales to external customers are made within Indonesia.
| Consolidated | ||
|---|---|---|
| 2016 | 2015 | |
| US$'000 | US$'000 | |
| Indonesia | 354 | 318 |
| Australia | 19 | 15 |
| India | 25 | 2 |
| Thailand | 3 | - |
| Singapore | 9 | - |
| New Zealand | 52 | 12 |
| Total external revenue | 462 | 347 |
7. Subsequent events
As disclosed to the market the following events occurred after balance sheet date:
- On 23 January 2017, 16,040,400 fully paid ordinary shares were released from escrow. These shares were held under a six-month voluntary escrow from the date of RAN's admission to the ASX on 21 July 2016.
- On 30 January 2017, commissioning of the first production line at the Company's Pasuruan factory in Indonesia was completed and the Company successfully produced its first Re-PalTM pallets. The Company now has three production lines operational in Indonesia.
Other than those outlined above no matters or circumstances have arisen since 31 December 2016 that have significantly affected or may significantly affect:
- the Company's operations in future financial years; or
- the result of those operations in future financial years; or
- the Company's state of affairs in future financial years.
8. Corporate Information
Range International Limited ("Range") is a manufacturer of plastic pallets listed on the Australian Securities Exchange (ASX:RAN). Range's ThermoFusion™ technology allows it to make plastic pallets from 100% recycled mixed waste plastic.
Range has production facilities located in Indonesia operated by its subsidiary PT Enviropallets Bali and sells its pallets under the brand Re>Pal™, while its Singapore subsidiary, Range International Holdings Limited ("RIHL"), owns all of Range's intellectual property.
The address of Range International Limited's registered office and its principal place of business is Level 5, 134 William Street, Woolloomooloo, NSW Australia 2010.
Forward-looking statements
This Unaudited Preliminary Final Report (Appendix 4E) may include forward-looking statements about our financial results, guidance and business prospects that may involve risks and uncertainties, many of which are outside the control of Range International Limited. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date that they are made and which reflect management's current estimates, projections, expectations or beliefs and which involve risks and uncertainties that could cause actual results and outcomes to be materially different. Risks and uncertainties that may affect the future results of the Company include, but are not limited to, adverse decisions by regulators, changes in the competitive environment, lawsuits, loss of contracts or unexpected growth in costs and expenses. The statements being made in this report do not constitute an offer to sell, or solicitation of an offer to buy, any securities of Range International Limited. No representation, warranty or assurance (express or implied) is given or made in relation to any forward-looking statement by any person (including Range International Limited). In particular, no representation, warranty or assurance (express or implied) is given in relation to any underlying assumption or that any forward-looking statement will be achieved. Actual future events may vary materially from the forward-looking statements and the assumptions on which the forward-looking statements are based. Given these uncertainties, readers are cautioned to not place undue reliance on such forward-looking statements.