31 Aug 2021

Appendix 4E - Preliminary Final Report YE 30 June 2021

Land & Homes Group Limited ABN 33 090 865 357 Level 3A, 148 Elizabeth Street Sydney NSW 2000 T +61 2 8281 3033 F +61 2 8281 3030 E info@landnhomesgroup.com ASX Release (ASX Code: LHM) 31 AUGUST 2021 APPENDIX 4E – PRELIMINARY FINAL REPORT YEAR ENDED 30 JUNE 2021 Attached is the Company’s Appendix 4E and Preliminary Final Report for the Year ended 30 June 2021. Authorised by the Board. For further information please contact: Andrew J. Cooke, Company Secretary andrewcooke@landnhomesgroup.com About Land & Homes Group Limited Land & Homes Group Limited (LHM) is a property development company focused on the acquisition of prime sites for project development into quality residential, commercial and mixed-use apartments. The Company is listed on the Australian Securities Exchange. Its strategy is to hold a diverse portfolio of high-yield properties and projects at various stages of development and construction. The Company's operations have been established in Brisbane to develop quality, medium to high-density residential apartments for an expanding market in the strong sustainable growth region of South East Queensland. Initially concentrating the business activity on Brisbane city, the residential products are to be developed in attractive convenient locations of inner Brisbane area suitable for a balance of both investors and owner occupiers. The Company is well placed to leverage the credentials and track record of its major shareholder, the Lian Huat Group, in property development in Australia with strong networks and insight into the needs of investors from Asia. With this experience, LHM will realise its Asia Vision through the establishment of an experienced management team that has expertise in Australia’s property market, urban planning, project management and finance, along with an intimate knowledge of the appetite and demands of the significant Asian market. Please visit the Company web site for additional details: www.landnhomesgroup.com APPENDIX 4E PRELIMINARY FINAL REPORT FOR THE YEAR ENDED 30 JUNE 2021 Lodged with the ASX under Listing Rule 4.3A APPENDIX 4E Results for announcement to the market Net tangible assets Control over other entities Associates and joint venture entities Preliminary financial statements Compliance statement 1 Company Details Name of reporting entity: Land & Homes Group Limited ABN: 33 090 865 357 Reporting period: 1 July 2020 - 30 June 2021 Prior corresponding reporting period: 1 July 2019 - 30 June 2020 Results for announcement to the market Revenue from ordinary activities Up 56% to 411,452 Up 94% to (4,058,242) Up 94% to (4,058,242) Review of Operations Net tangible assets Net tangible asset backing per ordinary share at 30 June 2021, 0.257 cents and at corresponding period 0.644 cents. Control over other entities Name of entity: N/A Date of control gained: N/A Contribution to reporting entity's profit: N/A Loss from ordinary activities attributable to members Net comprehensive loss for the year No dividend has been paid during the financial year or in the previous corresponding period. No dividend has been proposed or declared since the end of the financial year. The Land & Homes Group's business strategy is focused on property investment and multi - purpose property development in Australia. The Group's preferred property development model is to develop quality, medium to high density residential apartments in South East Queensland, focussing initially on Brisbane. The residential developments are to be in attractive, convenient locations of the inner Brisbane area suitable for a balance of both investments and owner occu p iers. The Group owns two properties in Brisbane, 207 Wharf Street, Spring Hill and 100 Barry Parade, Fortitude Valley. During the financial year, the Group entered into a binding contract for the sale of 207 Wharf Street, Spring Hill. The current focus of the Group remains to be the redevelopment of 100 Barry Parade into a multi - storey mixed use tower over the next 5 years. The consolidated loss for the year ended 30 June 2021 was $4,058,242 (2020 loss:$2,093,972) The net assets of the Group as at 30 June 2020 was $2,696,324. (30 June 2020: $6,754,566) 2 Land & Homes Group Limited ABN: 33 009 865 357 For the year ended 30 June 2021 Note 2021 (unaudited) 2020 $ $ Revenue Revenue 2 138,482 185,790 Other income 2 272,970 77,405 411,452 263,195 Expenses Employee benefits expense 469,660 550,242 Management fee - (641,667) Professional fees 183,992 137,217 Share registry 9,241 7,393 Insurance 66,415 70,107 Travel expenses 2,247 40,187 Rental costs - Investment property 548,310 514,551 Depreciation and amortisation expense 371,490 373,137 Movement in fair value in investment property 1,380,478 - Other expenses 93,540 159,528 3,125,373 1,210,695 Loss before finance costs and income tax (2,713,921) (947,500) Finance costs 1,344,321 1,146,472 Loss before income tax (4,058,242) (2,093,972) Income tax expense - - Loss for the year (4,058,242) (2,093,972) Other comprehensive income: - - Total comprehensive loss (4,058,242) (2,093,972) Earnings per share Basic and diluted (loss) per share (cents) (0.39) (0.20) PRELIMINARY STATEMENT OF CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Group The above statement should be read in conjunction with the accompanying notes. 3 Land & Homes Group Limited ABN: 33 009 865 357 As at 30 June 2021 Note 2021 (unaudited) 2020 $ $ Assets Current Assets Cash and cash equivalents 1,231,170 535,395 Trade and other receivables 16,657 142,204 Other assets 3 173,429 16,155 Investment property 5 19,500,000 - Total Current Assets 20,921,256 693,754 Non - Current Assets Inventories 4 28,281,555 26,638,382 Property, plant and equipment 15 1,661 Investment property 5 - 21,233,770 Total Non - Current Assets 28,281,570 47,873,813 Total Assets 49,202,826 48,567,567 Liabilities Current Liabilities Trade and other payables 6 1,866,779 1,525,193 Borrowings 7 44,639,723 40,287,808 Total Current Liabilities 46,506,502 41,813,001 Non - Current Liabilities Borrowings - - Total Non - Current Liabilities - - Total Liabilities 46,506,502 41,813,001 Net Assets 2,696,324 6,754,566 Equity Issued capital 69,078,509 69,078,509 Reserves 23,961 23,961 Retained earnings (66,406,146) (62,347,904) Total Equity 2,696,324 6,754,566 PRELIMINARY CONSOLIDATED STATEMENT OF FINANCIAL POSITION Group The above statement should be read in conjunction with the accompanying notes. 4 Land & Homes Group Limited ABN: 33 009 865 357 For the year ended 30 June 2021 Ordinary Shares Accumulated Losses Option Reserve Total $ $ $ $ Consolidated Group Balance at 1 July 2019 69,078,509 (60,253,932) 23,961 8,848,538 Comprehensive income Loss for the year - (2,093,972) - (2,093,972) - - - - - (2,093,972) - (2,093,972) Shares issued during the year - - - - - - - - Balance at 30 June 2020 69,078,509 (62,347,904) 23,961 6,754,566 Balance at 1 July 2020 69,078,509 (62,347,904) 23,961 6,754,566 Comprehensive income Loss for the year - (4,058,242) - (4,058,242) - - - - - (4,058,242) - (4,058,242) Shares issued during the year - - - - - - - - Balance at 30 June 2021 69,078,509 (66,406,146) 23,961 2,696,324 Other comprehensive income for the year Transactions with owners, in their ca p acit y as owners, and other transfers Total transactions with owners and other transfers Transactions with owners, in their capacity as owners, and other transfers Total comprehensive income for the year Total comprehensive income for the year Other comprehensive income for the year Total transactions with owners and other transfers The above statement should be read in conjunction with the accompanying notes. PRELIMINARY STATEMENT OF CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 5 Land & Homes Group Limited ABN: 33 009 865 357 For the year ended 30 June 2021 2021 (unaudited) 2020 $ $ Cash Flows from Operating Activities Receipts from customers 378,252 255,302 Payments to suppliers and employees (2,000,502) (1,040,789) Interest received 110 2,213 Finance costs (556,543) (930,399) Payments for land and development (1,348,990) (1,551,911) Net cash (used in) operating activities (3,527,673) (3,265,584) Cash Flows from Investing Activities Payments for investment property (16,552) (109,835) Net cash (used in) Investing Activities (16,552) (109,835) Cash Flows from Financing Activities Proceeds from borrowings - external lenders 4,240,000 3,368,000 Repayment of borrowings - external lenders - - Net cash provided by Financing Activities 4,240,000 3,368,000 Net increase in cash held 695,775 (7,419) Cash and cash equivalents at beginning of financial year 535,395 542,814 Cash and cash equivalents at end of financial year 1,231,170 535,395 PRELIMINARY STATEMENT OF CONSOLIDATED STATEMENT OF CASH FLOWS Group The above statement should be read in conjunction with the accompanying notes. 6 Land & Homes Group Limited ABN: 33 009 865 357 For the year ended 30 June 2021 Note 1: Summary of Significant Accounting Policies Note 2: Revenue and Other Income 2021 (unaudited) 2020 $ $ Revenue Rental revenue 138,482 185,790 138,482 185,790 Other income - Other income 100,110 77,405 - Unrealised foreign exchange gains 61,145 - - Government Covid - 19 subsidiaries 111,715 - 272,970 77,405 Note 3: Other Assets 2021 (unaudited) 2020 $ $ Current Deposits - 16,155 Prepayments 173,429 - 173,429 16,155 Note 4: Inventories 2021 (unaudited) 2020 $ $ Non - Current Property held for resale Land held for sale 21,319,234 21,319,234 Capitalised Development Costs 6,962,321 5,319,148 Aggregate Carrying Costs 28,281,555 26,638,382 Group This property held as inventory, located at 100 Barry Parade, Brisbane is pledged as security with United Overseas Bank Ltd. Group Group There have been no material changes in the Company's application of its significant accounting policies as presented in the Company's financial statements for the year ended 30 June 2020. Readers of this report should refer to Note 1: Summary of Significant Accounting Policies in the afore - mentioned statements for details of those accountin g p olicies. NOTES TO THE PRELIMINARY FINANCIAL STATEMENTS 7 Land & Homes Group Limited ABN: 33 009 865 357 For the year ended 30 June 2021 Note 5: Investment Property 2021 (unaudited) 2020 $ $ A t Cos t Balance at beginning of year 21,233,770 21,503,764 Acquisitions and additional costs - Wharf Street 16,552 99,850 Depreciation - Building component (369,844) (369,844) Fair value movement (1,380,478) - Balance at end of year 19,500,000 21,233,770 Note 6: Trade and Other Payables 2021 (unaudited) 2020 $ $ Current Trade payables 1,066,734 962,409 Accrued expenses and payroll liabilities 800,045 562,784 1,866,779 1,525,193 Note 7: Borrowings 2021 (unaudited) 2020 $ $ Current Unsecured Loan from Related Party Shareholder 1 1,253,786 1,227,389 Convertible Note - Class A 9,787,594 8,547,594 Convertible Note - Class B 638,343 552,825 11,679,723 10,327,808 Secured Bank loans 32,960,000 29,960,000 32,960,000 29,960,000 Total current borrowings 44,639,723 40,287,808 NOTES TO THE PRELIMINARY FINANCIAL STATEMENTS Group The property located at 187, 191, 195, 199, 203, 207 and 2011A Wharf Street, Spring Hill, Brisbane was originally purchased for $22,727,792, inclusive of stamp duty and other acquisition costs. The Group has applied the cost model. The total cost of $22,742,995 was allocated between land ($6,100,000) and buildings ($16,642,995). The remaining expected useful economic life of the building has been determined to be 45 years and the building component has been depreciated on a straight - line basis. To date , the Grou p has reco g nised a de p reciation char g e of $ 1 , 978 , 919 and im p rovements of $ 116 , 402. Group 1 The loan from SLH Corporation Pte Ltd (SLH) is interest bearing but unsecured, and provides for a total facility of $1 million Singapore dollars to the Group for its overhead expenses. On 22 November 2018, SLH Corporation Pte Ltd (SLH) assigned the loan to Khosland Management Pte Ltd. The term of the loan ex p ired 31 December 2019. The Com p an y is in the p rocess of rene g otiatin g an extension of this loan. Group 8 Land & Homes Group Limited ABN: 33 009 865 357 For the year ended 30 June 2021 Note 8: Interest in Subsidiaries (a) Information about Principal Subsidiaries Name of subsidiary Principal place of business 2021 ( % ) 2020 ( % ) Land & Homes Investment Pty Ltd Australia 100 100 Brisbane Land Holdings Pty Limited Australia 100 100 BLH Wharf Pty Ltd Australia 100 100 Note 9: Issued Capital Note 10: Earnings per share 2021 (unaudited) 2020 $ $ Losses used in the calculation of basic and dilutive EPS (4,058,242) (2,093,972) 2021 (unaudited) 2020 1,049,389,293 1,049,389,293 - - 1,049,389,287 1,049,389,287 Note 11: Operating Segments Note 12: Events Subsequent to Reporting Date NOTES TO THE PRELIMINARY FINANCIAL STATEMENTS On 27 July 2021, the Company announced that 347,227,356 LHMO options which have an exercise price of $0.20 will expire on 12 August 2021. On 14 July 2021, the Company announced it had completed the sale of 207 Wharf Street for $19.5million. As a result, the Company repaid $18.96million of its borrowings with the bank. Other than the following, the directors are not aware of any significant events since the end of the reporting period. Weighted average number of ordinary shares outstanding during the year used in calculating basic EPS Weighted average number of ordinary shares outstanding during the year used in calculating dilutive EPS Weighted average number of dilutive options outstanding Management currently identifies the consolidated entity as having only one operating segment, being the acquisition of prime sites for project development into quality residential, commercial and mixed - used apartments. Accordingly, all significant operating decisions are based upon analysis of the consolidated entity as one segment. The financial results from the segment are equivalent to the financial statements of the Grou p . Ownership interest held by the Group Number Group Subsidiary financial statements used in the preparation of these consolidated financial statements have also been prepared as at the same reporting date as the Group’s financial statements. The Group has authorised share capital amounting to 1,049,389,293 ordinary shares. No shares were issued during the reporting period. The subsidiaries listed below have share capital consisting solely of ordinary shares or ordinary units which are held directly by the Group. The proportion of ownership interests held equals the voting rights held by Group. Each subsidiary’s principal place of business is also its country of incorporation. 9 Land & Homes Group Limited ABN: 33 009 865 357 For the year ended 30 June 2021 Note 13: Contingent Liabilities COMPLIANCE STATEMENT Signed: Choon Keng Kho Director 31 August 2021 There were no other contingent liabilities. This Preliminary Financial Report assumes a liability to a Director related entity in the amount of $225,744. The amount owed to the Director related entity is in dispute. The Director related entity claims that the amount due is $960,317. The Director related entity believes that it is entitled to be paid mana g ement fees. There is no Management Agreement with the Director related entity and accordingly, the Company does not believe that it has any obligation to pay the management fees claimed by the Director related entity. Management fees that had previously been accrued by the Company were reversed by the Company during the period ended 31 December 2019. In the Directors' Opinion, this report does give a true and fair view of the matters disclosed. The annual financial report for Land & Homes Group Limited is in the process of being audited. The Directors understand that the audit is not subject to any disputes or qualifications and the audit is expected to be completed on or before 30 September 2021. NOTES TO THE PRELIMINARY FINANCIAL STATEMENTS The financial information provided in Appendix 4E is based on the annual financial report which is being prepared in accordance with Australian Accounting Standards or standards acceptable to ASX. The reporting and the accounts upon which the report is based used the same accounting policies. 10
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