Global grows losses as it invests in renewables


Global grows losses as it invests in renewables

Published Date: 2019-03-14 | Source: Stephen Gunnion | Author: Stephen Gunnion | Comments

Global grows losses as it invests in renewables

The investment group is moving out of asset finance as it takes advantage of growth in recycling and alternative energy.

Global Asset Management says it's made good progress over the past year in establishing its renewable energy businesses, which focus on waste-to-energy. These are the businesses the group is holding onto as it exits its LSF asset finance and prepares to delist from the JSE.

On Monday, Global announced a scheme of arrangement to buy out minority shareholders at R2.10 per share due to the lack of liquidity in its shares and the expense of being listed on the JSE's AltX. It's also had limited success in raising equity capital through its listing.

In the year to end-November, it shifted its Enviroprotek operations to a new industrial site in Nigel on the far East Rand, where it aims to recycle up to 500 tonnes of waste rubber a month. Its Plastics Green Energy successfully concluded its pilot plant campaign and has commenced with the construction of its commercial recycling facility, also in Nigel. Meanwhile, Heliosek completed the design for its initial pilot plant to be established this year. The technology used by Heliosek allows for the highly efficient exploitation of solar energy and could be expanded internationally, Global said.

For the period, revenue from continuing operations jumped by 582% to R3.3 million. Operating expenses almost doubled, partly due to development costs on its renewable energy businesses, resulting in a R10 million loss. Its discontinued operations reported a R39.7 million loss. It's posted a 10.7c per share loss for its continuing operations and a 64.3c combined loss per share.

The group's shares rose 17% to 88c in a single trade.

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