Everest Global : Half Report and Accounts – 2023

31 July 2023

Everest Global plc

("Everest" or the "Company")

Unaudited interim results for the six months ended 30 April 2023

The Board of Everest is pleased to announce its unaudited results for the six months ended 30 April 2023.

Chief Executive Officer's Report

I am pleased to report our unaudited results for the six months ended 30 April 2023.

To repeat for those new to the Company, on 3 October 2022, prior to the previous year-end, the Company announced a number of important events including the recapitalisation of the Company through a subscription by Golden Nice International Limited of 13 million new Ordinary Shares in the Company for £650,000 and its purchase of 65% of the outstanding convertible loan notes, with the remainder of the convertible loan notes (35%) being converted by the note holders into Ordinary Shares in the Company.. The Company also changed its name to Everest Global Plc, both Andrew Monk and Matt Bonner resigned from the Board and Simon Grant-Rennick and I were appointed to the Board. .

During the current reporting period, on the 24 January 2023, the Company announced a subscription for 12,726,000 new Ordinary Shares raising net proceeds totalling £699,930 at a subscription price of 5.5 pence per Ordinary Share. In addition, on 25 January 2023, the convertible loan note holder, Golden Nice International Limited converted £300,000 of its debt to 6,000,000 new Ordinary Shares.

Due to the number of new shares issued in the period under review and on 3 October 2022, in order to comply with Prospectus Regulation Rule 1.2.4, which prohibits the admission of more than 20% of the number of securities already admitted to trading on the Main Market of the London Stock Exchange without a prospectus, the Company is working towards publishing a prospectus in relation to the issue of the these shares, by 2 October 2023, in order to enable them to be admitted to trading on the Main Market of the London Stock Exchange in accordance with Listing Rule 14.3.4.

This has been the first reporting period that the Company is operating as Everest Global Plc with the new reconstituted board for the full period and I am pleased to announce that the board is working very well together despite the head winds. The board is clear on its mandate and strategy and is working towards achieving this.

Post period end, the Company announced on the 4 July 2023, that it had invested £200,000 by way of a loan into Precious Link (UK) Limited, a wine retailer, located within the Southeast of England. The Board believes that Precious Link operates in a complementary sector and that the loan could assist the Company in expanding its activities into the wider food and beverage sector.

As mentioned in the Annual Financial Statements for the year ended 31 October 2022, and simultaneous to the investment by Golden Nice International Limited, Dynamic Intertrade (Pty) Limited ("Dynamic") issued shares to K2 Spice Limited (previously VSA NEX Investments Limited) ("K2"), for consideration of ZAR10,982, such that Everest Global retains 51% interest in Dynamic and K2 now holds 49% of Dynamic. Further, the Company granted K2 a put option for £1 to acquire the remaining 51% once certain conditions have been met. In addition, certain debts owing by Dynamic to the Company and certain other parties were also assigned to K2 in consideration for K2 paying to the Company £100,001 and agreeing to fund Dynamic so as to enable Dynamic to carry on its business in the ordinary course until such time as the Company ceases to hold any further shares in Dynamic.

The Company's present primary operations and source of revenue remains its 51% holding in Dynamic, our Cape Town based spice blender and trader. The underlying Company was still loss making for the

year ended 31 October 2022 (see Note 4 for a full explanation) but has since improved its performance during the six-months ended 30 April 2023. Group turnover increased by 20.98% (6 months to 30 April 2022: a reduction of 13.5%). Group operating losses amounted to £1,380,631 (6 months to 30 April

2022: £11,176) for the current period.

During the period our previous auditor resigned as they were no longer in a position to audit Public Interest Entity ("PIE") companies and due to capacity constraints with many other auditors there was a delay in appointing a PIE registered auditor. As a result, the Company could not complete their statutory audit, publication of results or statutory filing at Companies House on time. As such, trading in the Company's Ordinary Shares and its listing on the Official List of the Financial Conduct Authority was suspended. The Company was granted an extension of its filing obligations by Companies House.

Dynamic Intertrade ("Dynamic")

For the 6-month period ending 30 April 2023, Dynamic recorded revenue of R30.8 million (30 April 2022, R14.04 million, and 31 October 2022, R34.8 million) representing a 119% increase. This increase in revenue resulted in gross profit of R9.28 million (representing a gross margin of 30%). This is a 50% improvement in the margin from the 20% for the six months ended 30 April 2022 and the 24.74% for the full year ended 31 October 2022. Operating expenses have increased by 11% to R4.9 million from R4.4 million for the period to 30 April 2022. EBITDA was R4.6 million (31 October 2022: Loss - R11.2 million).

While a pleasing improvement it has put pressure on the working capital requirements which we are expecting K2 to assist with under an agreement signed on 3 October 2022.

DI has maintained its FSSC22000 certification which is important when dealing with blue chip food manufacturing companies.

Dynamic Intertrade Agri ("DIA")

As stated on 20 July 2023, the Company's 46.8% share in DIA was disposed of to Athena Trading Worldwide Limited for a consideration of £15,384.62.

Group Results for the period

Group turnover increased to £1,434,073 for the six months ended 30 April 2023 from the £681,761 for the comparative period ended 30 April 2022, and is only 15,6% lower than the turnover for the full year ended 31 October 2022 of £1,698,839. The Group made an operating profit of £476,634 for the six months to 30 April 2023 (30 April 2022: loss of £11,176, 31 October 2022: loss of £1,152,170). This has primarily been the result of an improvement in the exchange rates as evidenced by the gain on foreign exchange of £383,990 and the increase in revenue mentioned above.

At the end of the period under review the Company had cash and cash equivalents of £1,405,609 (30 April 2022: £503,399, 31 October 2022: £925,814).

Outlook

While the world economy is uncertain with the war in the Ukraine, inflation, high interest rates and, uncertain demand and supply we believe we will steady the Company and give it a solid foundation for future growth.

The unaudited interim report for the 6 months ended 30 April 2023 is available on the Company's website at: www.everestglobalplc.comand in hard copy form at the Company's registered office at 48 Chancery Lane, London WC2A 1JF.

It will also shortly be available for inspection at: www.fca.org.uk/markets/primary-markets/regulatory- disclosures/national-storage-mechanism.

Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information for the purposes of Article 7 of EU Regulation 596/2014 (which forms part of domestic UK law pursuant to the European Union (Withdrawal) Act 2018). With the publication of this announcement, this information is now considered to be in the public domain.

The Directors of the Company accept responsibility for the content of this announcement.

For further information please contact the following:
Everest Global plc
Andy Sui, Chief Executive Officer	+44	(0)	776 775 1787
Rob Scott, Non-Executive Director	+27	(0)84 6006 001
Cairn Financial Advisers LLP
Jo Turner / Emily Staples	+44	(0)	20 7213 0885 / [phone]

Caution regarding forward looking statements

Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect", ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.

Principal Risks and uncertainties for the remaining 6 months of the financial year

The Directors consider the following risk factors to be of relevance to the Group's activities for the remaining 6 months of the financial year. It should be noted that the list is not exhaustive and that other risk factors not presently known or currently deemed immaterial may apply:

1. Development Risk

The Group's development will be, in part, dependent on the ability of the Directors to continue to improve the current business, to identify suitable investment opportunities and to implement the Group's strategy. There is no assurance that the Group will be successful in acquiring suitable investments.

1. Sector Risk

The agriculture and agri-processing sectors are highly competitive markets and many of the competitors will have greater financial and other resources than the Company and as a result may be in a better position to compete for opportunities.

The development of these enterprises involves significant uncertainties and risks including unusual climatic conditions such as drought, improper use of pesticides, availability of labour and seasonality of produce, any one of which could result in security of supply, damage to, or destruction of crops, environmental damage or pollution. Each of these could have a material adverse impact on the business, operations and financial performance of the Group.

The market price of agricultural products and crops is volatile and affected by numerous factors which are beyond the Group's control. These include international supply and demand, the level of consumer product demand, international economic trends, currency exchange rate fluctuations, the level of interest rates, the rate of inflation, global or regional political events, as well as a range of other market forces. Sustained downward movements in agricultural prices could render less economic, or un- economic, any development or investing activities to be undertaken by the Group. Certain agricultural projects involve high capital costs and associated risks. Unless such projects enjoy long term returns, their profitability will be uncertain resulting in potentially high investment risk.

iii. Political and Regulatory Risk

African countries experience varying degrees of political instability. There can be no assurance that political stability will persist in those countries where the Group may have operations going forward. In the event of political instability or changes in government policies in those countries where the Group may operate, the operations and financial condition of the Group could be adversely affected.

iv. Environmental Risks and Hazards

All phases of the Group's operations are subject to environmental regulation in the areas in which it operates. Environmental legislation is evolving in a manner that may require stricter standards and enforcement, increased fines and penalties for non-compliance, more stringent environmental assessments of proposed projects and a heightened degree of responsibility for companies and their officers, Directors and employees.

There is no assurance that existing or future environmental regulation will not materially adversely affect the Group's business, financial condition and results of operations. Environmental hazards may exist on the properties on which the Group holds interests that are unknown to the Group at present. The Board manages this risk by working with environmental consultants and by engaging with the relevant governmental departments and other concerned stakeholders.

1. Internal Control and Financial Risk Management

The Board has overall responsibility for the Group's systems of internal control and for reviewing their effectiveness. The Group maintains systems which are designed to provide reasonable but not absolute assurance against material loss and to manage rather than eliminate risk.

The key features of the Group's systems of internal control are as follows:

1. Management structure with clearly identified responsibilities;

1. Production of timely and comprehensive historical management information presented to the Board;

1. Detailed budgeting and forecasting;

1. Day to day hands on involvement of the Executive Director and Senior Management; and o Regular Board meetings and discussions with the Non-Executive Directors.

The Group's activities expose it to several financial risks including cash flow risk, liquidity risk and foreign currency risk.

vi. Environmental Policy

The Group is aware of the potential impact that its subsidiary and associate companies may have on the environment. The Group ensures that it complies with all local regulatory requirements and seeks to implement a best practice approach to managing environmental aspects.

The subsidiary, Dynamic Intertrade operates a Food Safety System Certification ("FSSC") compliant facility in Cape Town. The FSSC provides a framework for effectively managing the organisation's food safety responsibilities and is fully recognized by the Global Food Safety Initiative and is based on existing ISO Standards.

vii. Health and Safety

The Group's aim is to achieve and maintain a high standard of workplace safety. In order to achieve this objective, the Group provides ongoing training and support to employees and sets demanding standards for workplace safety.

viii. Financing Risk

The development of the Group's business may depend upon the Group's ability to obtain financing primarily through the raising of new equity capital or debt. The Group's ability to raise further funds may be affected by the success of existing and acquired investments. The Group may not be successful in procuring the requisite funds on terms which are acceptable to it (or at all) and, if such funding is unavailable, the Group may be required to reduce the scope of its investments or the anticipated expansion. Further, Shareholders' holdings of Ordinary Shares may be materially diluted if debt financing is not available.

ix. Credit Risk

The Directors have reviewed the forecasts prepared by both the Company and Dynamic and believe that Dynamic has adequate resources available to meet its obligations to the Company and its lenders.

1. Liquidity Risk

The Directors have reviewed the working capital requirements of the Company and Dynamic and believe that, following stress tests and variance analysis on the forecasts, there is sufficient working capital to fund the business while expanding turnover. The Directors further highlight the inherent uncertainties involved in making the assessment that the entity is a going concern.

1. Capital Risk

The Group manages its capital resources to ensure that entities in the Group will be able to continue as a going concern, while maximising shareholder return.

The capital structure of the Group consists of equity attributable to shareholders, comprising issued share capital and reserves. The availability of new capital will depend on many factors including a positive operating environment, positive stock market conditions, the Group's track record, and the experience of management. There are no externally imposed capital requirements. The Directors are confident that adequate cash resources exist or will be made available to finance operations and controls over expenditure are carefully managed.

To manage the above risks, management are in regular contact with our customers and are actively exploring new markets and customers in order to diversify these risks.

Responsibility Statement

The Directors, whose names and functions are set out under the 'Directors and Advisers' section of this report with registered office located at 48 Chancery Lane, London WC2A 1JF, accept responsibility for the information contained in this set of interim results for the six month period ended 30 April 2023.