For personal use only

MERCHANT HOUSE INTERNATIONAL LIMITED

ARBN 065 681 138

APPENDIX 4E

PRELIMINARY FINAL REPORT

FOR THE YEAR ENDED

31 MARCH 2022

For personal use only

MERCHANT HOUSE INTERNATIONAL LIMITED | APPENDIX 4E | 31 MARCH 2022 | Results for announcement to the market

Rule 4.3A

APPENDIX 4E

Preliminary Final Report

Reporting period (current period)

Year ended 31 March 2022

Previous corresponding period

8

Year ended 31 March 2021

Results for announcement to the market

Results performance

2022

2021

Change

$'000

$'000

%

Revenue from ordinary activities

22,905

18,574

23.32

Loss for the year from continuing operations

(8,483)

(8,640)

(1.82)

Net profit / (loss) attributable to owners of the Company

13,511

(7,726)

274.88

Basic earnings / (loss) per share (cents per share)

14.33

(8.20)

274.39

Dividends

Franked

Amount per

Amount per

amount per

Security of

Total

Date of

security at

foreign source

Dividends

security

30% tax

dividend

Amount

payment

cents

cents

cents

$'000

2021 final dividend

Nil

Nil

Nil

-

-

2021 special dividend

1.0

Nil

Nil

943

11 June 2021

2022 interim dividend

-

Nil

Nil

-

-

2022 final dividend

-

Nil

Nil

-

-

At the date of this report, there are no dividend reinvestment plans in operation.

Net tangible assets

2022

2021

cents

cents

Net tangible asset backing per ordinary share

41.35

27.57

2

For personal use only

MERCHANT HOUSE INTERNATIONAL LIMITED | APPENDIX 4E | 31 MARCH 2022 | Results for announcement to the market

Earnings / (loss) per share

2022

2021

cents

cents

Basic and diluted loss per share

Basic and diluted loss per share - continuing operations

(9.00)

(8.38)

Basic and diluted earnings per share - discontinued operations

23.33

0.18

Profit / (loss) attributable to owners of the Company

14.33

(8.20)

Weighted average number of ordinary shares outstanding

during the year used in the calculation of basic and diluted EPS

94,266,496

94,266,496

Explanation of results

After monitoring the home textile production business in China, Carsan (Shunde) Manufacturing Co. Ltd, the Group's 100% owned subsidiary in China, was disposed in April 2022.

Having completed the disposal of Carsan, and as the US economy continues to steadily recovery, the Group is mainly concentrated on the operations of both USA factories.

The USA home textile operations have seen improvements in efficiency and expansion of its customer base. Despite generating revenues of A$2.7 million, the results were a loss before interest, depreciation, and amortisation of A$3.5 million.

As a consequence of product development with sizable and stable customers, the USA footwear trading and manufacturing operations generated sales of A$3.3 million resulting in a loss of A$2.6 million before interest, depreciation, and amortisation.

For the year, the footwear trading business generated a small profit (A$439K).

3

For personal use only

MERCHANT HOUSE INTERNATIONAL LIMITED | APPENDIX 4E | 31 MARCH 2022 | Results for announcement to the market

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2022

2022

2021

$'000

$'000

Revenue

22,905

18,574

Cost of sales

(24,668)

(21,091)

Gross loss

(1,763)

(2,517)

Other gains

109

28

Government grants and subsidies

951

914

Finance income

11

28

Selling and distribution costs

(335)

(308)

Personnel expenses

(3,580)

(3,304)

Depreciation

(2,065)

(1,976)

Amortisation - right-of-use assets

(115)

(191)

General and administrative expenses

(1,377)

(1,339)

Finance costs

(117)

(240)

Net foreign exchange (losses) / gains

(131)

352

Loss before income tax expense

(8,412)

(8,553)

Income tax expense

(71)

(87)

Loss for the year from continuing operations

(8,483)

(8,640)

Profit from discontinued operations

21,994

914

Profit / (loss) for the year

13,511

(7,726)

Other comprehensive income, net of tax

Items that may be reclassified subsequently to profit or loss:

Exchange differences arising on translation of foreign operations

(4,626)

(8,406)

Derecognition of foreign currency translation reserve

4,937

-

Other comprehensive income / (loss) for the year, net of tax

311

(8,406)

Total comprehensive income / (loss) for the year

13,822

(16,132)

Profit / (loss) per share attributable to owners of the Company

Basic and diluted (cents per share) - continuing operations

(9.00)

(8.38)

Basic and diluted (cents per share) - discontinued operations

23.33

0.18

Basic and diluted (cents per share)

14.33

(8.20)

4

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MERCHANT HOUSE INTERNATIONAL LIMITED | APPENDIX 4E | 31 MARCH 2022 | Results for announcement to the market

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2022 (continued)

Notes to the statement of profit or loss and other comprehensive income

2022

2021

$'000

$'000

Personnel expenses

Key management personnel remuneration

1,206

1,068

Wages and salaries

5,315

4,372

Contributions to defined contribution plans

35

39

Termination benefits

111

9

Other employee benefits

1,219

1,118

Total personnel expenses

7,886

6,606

Less: amount allocated to cost of sales

(4,306)

(3,302)

Amount allocated to personnel expenses

3,580

3,304

General and administrative expenses

For personal

Auditors' remuneration

Legal and consultancy fees

Insurance

Travelling

Low value / short term lease payments

Others

Discontinued operations - summary

Gain on disposal of subsidiaries Gain on disposal of associate Share of profit of associate

(Loss) / profit on discontinued operations prior to disposal Profit after income tax expense on discontinued operations

213

219

418

476

58

74

89

49

102

24

497

497

1,377

1,339

21,433

-

31

-

531

742

(1)

172

21,994

914

5

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Merchant House International Limited published this content on 31 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 May 2022 02:39:05 UTC.