REG - daVictus Plc - Annual Financial Report <Origin Href="QuoteRef">DVTD.L</Origin>

daVictusAnnouncement

27/04/2017 07:05

RNS Number : 4836D
daVictus plc
27 April 2017
26 April 2017
DAVICTUS PLC
("DAVICTUS" OR "THE COMPANY")
FINAL RESULTS FOR THE PERIOD ENDED 31 DECEMBER 2016
daVictus plc, (LSE: DVT) a company recently set up to seek business opportunities in the food and beverage sector in Asia, announces its results for the period ended 31 December 2016.
Highlights for the period:
- Company identified and examined a number of commercial opportunities
- Discussions continuing with a number of parties
- Sufficient funding in hand to support continuation of this strategy
Commenting on the results, Mr Robert Pincock, Chief Executive of daVictus plc, said:-
"Since our listing in early 2016, we have held discussions with a number of parties whose business activities closely match our own objectives. None of these discussions has yet produced a satisfactory basis for concluding a transaction of the kind envisaged at the time of our IPO and we continue to pursue opportunities. Meanwhile, the Company continues to keep administrative costs to a minimum." 
The financial information set out below does not constitute the Company's statutory accounts for the period ending 31 December 2016. The financial information for 2016 is derived from the statutory accounts for that year. The auditors, Crowe Clark Whitehill LLP, have reported on the 2016 accounts. Their report was unqualified and did not include a reference to any matters to which the auditors draw attention by way of emphasis without qualifying their report. The financial information for 2015 is derived from the statutory accounts for that year.
The preliminary announcement has been prepared on the basis of the accounting policies as stated in the financial statements for the period ended 31 December 2016. The information included in this preliminary announcement is based on the Company's financial statements which are prepared in accordance with International Financial Reporting Standards (IFRS). The Company expects to publish full financial statements that comply with IFRS today.
The annual report and accounts is available on the Company's website at: http://www.davictus.co.uk and in hard copy to shareholders upon request to the Company Secretary, Minerva Trust Company Limited at daVictus plc, 43/45 La Motte Street, St Helier, Jersey JE4 8SD.
The annual report and accounts for the period ended 31 December 2016 has been uploaded to the National Storage Mechanism and will be available for viewing shortly at http://www.morningstar.co.uk/uk/NSM

For more information please contact: 
daVictus plc

Robert Pincock
+603 5613 3388






Chairman's Statement
Dear Valued Shareholders,
It gives me a great pleasure to present the financial statements of daVictus Plc (the "Company" or "daVictus") for year ended 31 December 2016 on behalf of the Board of Directors.
Throughout 2016, the Company aimed to identify target companies or businesses in the food and beverages ("F&B") sector - which operate in or own Western food and beverage F&B eatery franchises in South East Asia and/or the Far East. 
The Directors have carried out a comprehensive and thorough investment review of a number of prospective franchises in the F&B sector with high growth prospects, none of which has met the necessary criteria for selection to date. 
While we continue our efforts to identify targets for acquisition, the Company has funds sufficient for general corporate purposes and pre-acquisition activities, including on-going costs and expenses such as Directors' fees and salaries, due diligence costs and other costs of sourcing, reviewing and pursuing Acquisitions.
I look forward to the year ahead with gratitude to our support from shareholders.
Abd Hadi Bin Abd Majid
Chairman


Operational and Financial Review
During the year, several opportunities were presented to the Company and were either actively reviewed or quickly rejected for not meeting our selection criteria. Examples of those we investigated are as below:
 F&B company based in South East Asia was presented to the Company for acquisition consideration. However, following an extensive review, the Company did not make an offer as it was considered overvalued.
 Reputable international F&B chain approached the Company about the a joint venture opportunities. These ideas were very early stage and are still under consideration. 
 Expresso Bar Chain is looking for expansion in China, Discussion is now going on whether it would be a possibility of joint venture/ or Master franchise rights. 
 European restaurant chain was considering overseas expansion and they are looking for an operator with a good track record. In the end, the restaurant chain decided that the Company does not meet their requirements. 
daVictus is still at an early stage of its investment period, initially set at three years. The Directors believe that the initial investment period should be sufficient but if no suitable opportunities can be consummated in that timeframe, , there will be a requirement for the investment period to be extended. The Company is flexible in its approach but will proceed only with opportunities that are of sufficient quality
Financial risk management objectives and policies
The Company does not enter at present into any forward exchange rate contracts or any other hedging arrangements. The main financial risks arising from the Company's activities are cash flow interest rate risk, liquidity risk, price risk (fair value) and credit risk. The Board reviews and agrees policies for managing each of these risks and they are summarised as:
Cash flow interest rate risk - the Company's exposure to the risk of changes in market interest rates relates primarily to the Company's overdraft accounts with major banking institutions. 
The Company's policy is to manage its interest income, when received, using a mixture of fixed and floating rate deposit accounts. 
Liquidity risk - the Company raises funds as required on the basis of budgeted expenditure and inflows. When funds are sought, the Company balances the costs and benefits of equity and debt financing. When funds are received they are deposited with banks of high standing in order to obtain market interest rates. 
Price risk- the carrying amount of the following financial assets and liabilities are approximate to their fair value due to their short term nature: cash accounts, accounts receivable and accounts payable. 
Credit risk- with respect to credit risk arising from other financial assets of the Company, which comprise cash and time deposits and accounts receivable, the Company's exposure to credit risk arises from default of the counterparty, with a minimum exposure equal to the carrying amount of these instruments. The credit risk on cash is limited as cash is placed with substantial financial institutions.


Statement of Comprehensive Income
for year ended 31 December 2016

Note
Year ended
31 December 2016

Period from
5 February ( inception) to
31 December 2015



Income









Interest Income

321

-





Listing expenses

(8,800)

(180,724)
Administrative expenses

(214,835)

(40,496)





Operating loss

(223,314)

(221,220)





Interest payable and similar charges

-

-
Loss before taxation
(223,314)

(221,220)





Taxation
3
-

-
Loss for the year

(223,314)

(221,220)





Other comprehensive loss for the year

-

-
Total comprehensive loss for the year attributable to the equity owners

(223,314)

(221,220)





Earnings/(loss) per share




Basic and diluted ( per share)
4
(0.02)

(0.28)







Statement of Financial Position
as at 31 December 2016

Note
As at
31 December 2016

As at
31 December 2015
Assets


Current assets




Cash and cash equivalents 
5
632,220

15,750





Total current assets

632,220

15,750





Total assets

632,220

15,750





Equity and liabilities




Capital and reserves




Stated capital
6
1,053,400

125,000
Retained earnings

(444,534)

(221,220)





Total equity

608,866

(96,220)





Liabilities




Current liabilities




Other payables

23,354

111,970





Total liabilities

23,354

111,970





Total equity and liabilities

632,220

15,750


Statement of Changes in Equity 
Period from 5 February 2015 (inception) to 31 December 2015

Stated capital

Retained earnings

Total









Loss for the period
-

(221,220)

(221,220)
Total comprehensive loss for the period
-

(221,220)

(221,220)
Shares issued on incorporation
-

-

-
Issue of ordinary shares
125,000

-

125,000
As at 31 December 2015
125,000

(221,220)

(96,220)
For the year ended 31 December 2016

Stated capital

Retained earnings

Total









As at 1 January 2016
125,000

(221,220)

(96,220)
Loss for the period
-

(223,314)

(223,314)
Total comprehensive loss for the period
-

(223,314)

(223,314)
Issue of ordinary shares
1,000,000

-

1,000,000
Share issuance costs
(71,600)

-

(71,600)
As at 31 December 2016 
1,053,400

(444,534)

608,866


Statement of Cash Flows
for the year ended 31 December 2016


Year ended
31 December 2016

Period from
5 February ( inception) to
31 December 2015

Note

Cash flow from operating activities  




Operating loss

(223,314)

(221,220)





Changes in working capital









(Decreased)/increase in trade and other payables 

(88,616)

111,970





Net cash used in operating activities 

(311,930)

(109,250)





Cash flows from financing activities









Proceeds from issuance of shares net of issue costs

928,400

125,000





Net cash generated from financing activities 

928,400

125,000










Increase in cash and cash equivalents 

616,470

15,750





Cash and cash equivalents at beginning of the period

15,750

-





Cash and cash equivalents at end of the period

632,220

15,750


The notes to the financial statements form an integral part of this financial information
1. General information 
The Company was incorporated as a public company under the Companies (Jersey) Law 1991 as amended on 5 February 2015 and had not commenced substantive operations during the period under review. 
The registered office of the Company is 43/45 La Motte Street, St. Helier, Jersey JE4 8SD. The Company has been formed to undertake one or more acquisitions of businesses (either shares or assets) which operate in or own Australian, European and/or North American food and beverage ("Western F&B") eatery franchises in South East Asia and/or the Far East.
The financial information of the Company is presented in British Pound Sterling (""). 
2. Significant accounting policies
a) Basis of preparation
The financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted for use by the European Union, and effective, or issued and early adopted, as at the date of these statements. The financial statements have been prepared under the historical cost convention as modified for financial assets carried at fair value. 
The comparative financial figures covers the period from incorporation on 5 February 2015 to 31 December 2015.
b) Going concern
This financial statement has been prepared on a going concern basis, which assumes that the Company will continue to be able to meet its liabilities as they fall due for the foreseeable future. 
3. Income tax
The Company is not a "Financial Services Company" registered under the relevant Jersey laws; or a specified utility company and therefore it is subject to Jersey income tax at the general rate of 0 per cent. If the Company derives any income from Jersey property, including development of land or quarrying, such income will be subject to tax at the rate of 20 per cent. It is not expected that the Company will derive any such income.


4. Loss per share
The calculation of loss per share is based on the following loss and number of shares:

2016

2015




Loss for the year from continuing operations ()
223,314

221,220




Weighted average shares in issue (unit)
9,232,877

791,667




Loss per share ( per share)
0.02

0.28
Basic loss per share is calculated by dividing the loss for the year from continuing operations of the Company by the weighted average number of Ordinary Shares in issue during the year. 
There are no potential dilutive shares in issue therefore the diluted loss per share has not been calculated.
5. Cash and cash equivalents 

2016

2015






Bank accounts
632,220

15,750
6. Stated capital
Summary of stated capital and movements during the year

Number of 
Ordinary Shares





On incorporation
2

2
Shares issued in 2015
1,249,998

125,000
Capital reduction in 2015
-

(2)




As at 31 December 2015
1,250,000

125,000




IPO issuance in January 2016
10,000,000
 
1,000,000
Share issuance costs
-

(71,600)




As at 31 December 2016
11,250,000

1,053,400




On 5 February 2015, the date of incorporation, the issued share capital of the Company was 2.00 comprising two ordinary shares of 1.00 each in the capital of the Company. The authorised share capital of the Company (both issued and unissued shares) on incorporation was 10,000 ordinary shares of 1.00 each. 
By way of Shareholder written resolutions dated 8 June 2015, the authorised share capital of the Company (both issued and unissued) was converted from 10,000 par value shares of 1.00 each into an unlimited number of no par value shares in accordance with the Companies (Jersey) Law 1991, as amended. Each one par value share of 1.00 in the capital of the Company was converted to one no par value share, and the Company was authorised to issue an unlimited number of no par value shares. As a result the two issued 1.00 ordinary shares in the capital of the Company were converted into two Ordinary Shares of no par value. 
On 8 June 2015, the Company issued 1,249,998 new Ordinary Shares of no par value at 0.10 each. 
On 20 October 2015, the Company carried out a capital reduction that reduced its stated capital account by 2.00 by special resolution of the sole Shareholder at that time, in accordance with the Companies (Jersey) Law 1991, as amended.
On 29 January 2016, the Company issued 10,000,000 Ordinary shares of 0.10 each at no par value as part of the Initial Public Offering of the Company's shares. 

This information is provided by RNS
The company news service from the London Stock Exchange
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