REG - daVictus Plc - INTERIM FINANCIAL STATEMENTS ENDED 30 JUNE 2022
15/09/2022 07:00
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RNS Number : 5267Z daVictus plc 15 September 2022
15 September 2022
DAVICTUS PLC
("DAVICTUS" OR "THE COMPANY")
UNAUDITED INTERIM FINANCIAL STATEMENTS ENDED 30 JUNE 2022
daVictus plc, (LSE: DVT), announces its unaudited interim financial statement
for the period ended 30. June 2022.
The Interim report is also available on the Company's website
at: http://www.davictus.co.uk (http://www.davictus.co.uk/) .
For further information, please contact:
Robert Pincock
robert@davictus.co.uk
+603 5613 3388
Chairman statements
I am pleased to report the interim financial statements of Davictus PLC (the
"Company" or Davictus") for the six months ended 30 June 2022.
The Company currently has two (2) franchisees located in Kuala Lumpur,
Malaysia and Bangkok Thailand.
Although the worst seems to be over, the aftereffects of the COVID-19 pandemic
continues to impact businesses globally and retail segment. After two years of
uncertainty, the health crises had turned into a global financial downturn due
to the restrictions imposed by most countries to contain the spread of the
virus. The Company had given its best to support and assist the franchisees to
revise restaurant guidelines to adapt with the new normal of post COVID-19
customer behaviour after reopening the economy.
Based on the above, the Company will adopt a more careful approach in
recruiting additional franchisees for other cities in Asia as initially
planned.
The Company places importance to the welfare of its employees. Additionally,
safety concerns of our franchisee's customers remain main priority to the
Company and its franchisees. I trust that the Company had done everything it
can in taking all appropriate measures to keep people safe whilst ensuring
continuity of our operations.
The Company continues to monitor the impact of the pandemic and will assist
all stakeholders to address the effects and possible actions actively. The
Company continues to keep its overhead low to maintain the business liquidity
and stay resilient in the strange times where the future remains uncertain for
at least until end of 2022.
The board would like to thank all the stakeholders of the Company for their
continued support.
Abd Hadi Bin Abd Majid
Chairman
15 September 2022
Directors Statement
For the reporting period under review, the Company reported a net profit of
£54,846. At 30 June 2022, the Company had cash in bank of £242,849.
There are a number of potential risks and uncertainties which may have
material impact on the Company's performance over the remaining six months of
the financial year and could cause actual results to differ materially from
expected and historical results. The directors do not consider any changes on
the principal risks and uncertainties since the publication of the annual
report for the year ended 31 December 2021, which contained a detailed
explanation of the risks relevant to the Company, is also available at
http://www.davictus.co.uk (http://www.davictus.co.uk) .
The Board looks forward to providing further updates to the shareholders in
due course.
Responsibility Statement
The Directors are responsible for preparing the Condensed Interim Financial
Statements in accordance with the Disclosure and Transparency Rules of the
United Kingdom's Financial Conduct Authority ('DTR') and with International
Accounting Standard 34 on Interim Financial Reporting (IAS 34).
The directors confirm that, to the best of their knowledge, this condensed
consolidated interim financial statement have been prepared in accordance with
IAS 34, as adopted by the European Union. The interim management report
includes a fair review of the information required by DTR 4.2.7 and
DTR 4.2.8, namely:
· an indication of important events that have occurred during the
first six months and their impact on the condensed set of financial
statements, and a description of the principal risks and uncertainties for the
remaining six months of the financial year; and
· material related-party transactions in the first six months and any
material changes in the related-party transactions described in the last
annual report.
………………………………….
Director
15 September, 2022
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2022
Notes 6 months period ended 6 months period ended
30-Jun-22 30-Jun-21
(Unaudited) (Unaudited)
£ £
Revenue 3 150,000 75,000
Cost of sales - -
Gross profit 150,000 75,000
Operating expenses (85,995) (79,635)
Operating Profit / Loss 64,005 (4,635)
Other income - 1,066
Gain on foreign exchange - 1,249
Interest income - 8
Finance expenses - (3,092)
Profit / Loss before taxation 64,005 (5,404)
Tax expense 4 - -
64,005 (5,404)
PROFIT / LOSS FOR THE YEAR
ATTRIBUTABLE TO EQUITY SHAREHOLDERS
OTHER COMPREHENSIVE INCOME
Loss on disposal of investment (9,159) -
TOTAL COMPREHENSIVE PROFIT FOR THE YEAR 54,846 (5,404)
Basic and diluted loss per share (pence) 5 0.04 p (0.04) p
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2022
As at As at As at
30-Jun-22 30-Jun-21 31-12-21
Notes (Unaudited) (Unaudited) Audited
£ £ £
Non-current assets
Right-of-use asset 7 45,633 76,056 60,844
45,633 76,056 60,844
Current assets
Trade receivables - 82,500 47,461
Other receivables 9,566 14,490 -
Cash and cash equivalents 242,849 45,523 96,624
252,415 142,513 144,085
Total assets 298,048 218,569 204,929
Equity attributable to equity holders of the company
Share capital 8 1,224,400 1,224,400 1,224,400
Accumulated losses (1,173,258) (1,224,564) (1,237,270)
Total equity 51,142 (164) (12,870)
Non-current liabilities
Lease liabilities 32,420 47,766 30,176
32,420 47,766 30,176
Current liabilities
Other payables 9 (5,350) 134,258 18,537
Deferred Income 204,167 - 136,666
Amount owing to directors 318 7,568 -
Lease liabilities 15,351 29,141 32,420
214,486 170,967 187,623
Total equity and liabilities 298,048 218,569 204,929
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW
FOR THE SIX MONTHS ENDED 30 JUNE 2022
As at As at
30-Jun-22 30-Jun-21
(Unaudited) (Unaudited)
£ £
Cash flow from operating activities
Operating Profit /(Loss) 54,846 (5,404)
Adjustment for:
Gain on disposal of - (1,066)
lease
Loss on disposal of investment 9,159 -
Depreciation of right-of-use-assets 15,211 15,211
Interest on lease liabilities 1,976 2,446
81,192 11,187
Changes in working capital
Decrease / (increase) in receivables 37,895 (61,140)
Increase / (decrease) in other payables 43,613 48,674
Increase / (decrease) in amount due to directors 318 7,568
Net cash flow used in operating activities 81,826 (4,898)
Cash flows from financing activities
Proceed from issuance of shares - 36,000
Proceed from disposal of investment 8 -
Repayment on lease liability (16,801) (16,806)
Net cash generated from financing activities (16,793) 19,194
Net increase in cash and cash equivalents 146,225 25,483
Cash and cash equivalents at beginning of period 96,624 20,040
Cash and cash equivalents at end of period 242,849 45,523
CONDENSED CONSOLIDATED STATEMENT CHANGES OF EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2022
Period from 1 January 2022 to 30 June 2022
Stated capital Accumulated losses Total
£ £ £
As at 1 January 2022 1,224,400 (1,237,270) (12,870)
Profit for the period - 54,846 54,846
Total comprehensive profit for the period - 54,846 54,846
Accumulated Loss of subsidiary disposed during the year - (9,166) 9,159
As at 30 June 2022 1,224,400 (1,173,258) 51,142
Period from 1 January 2021 to 30 June 2021
Stated capital Accumulated losses Total
£ £ £
As at 1 January 2021 1,224,400 (1,219,160) 5,240
Loss for the period - (5,404) (5,404)
Total comprehensive loss for the period - (5,404) (5,404)
As at 30 June 2021 1,224,400 (1,224,564) (164)
For the year ended 31 December 2021
Stated capital Accumulated losses Total
£ £ £
As at 1 January 2021 1,188,400 (1,219,159) (30,759)
Proceeds from issuance of ordinary shares 36,000 - 36,000
Loss for the period - (18,111) (18,111)
Total comprehensive loss for the period 36,000 (18,111) 17,889
As at 31 December 2021 1,224,400 (1,237,270) (12,870)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2022
1. GENERAL INFORMATION
The Company was incorporated and registered in Jersey as a public company
limited by shares on 5 February 2015 under the companies (Jersey) Law 1991 and
registered number 117716. The registered office of the Company is at the
offices of 28 Esplanade, St. Helier, Jersey, JE1 8SB.
On 15 March 2020, the Company acquired a dormant British Virgin Island
incorporated company as a wholly owned subsidiary for purpose of business
operation (together in this financial report referred as the 'Group').
2. ACCOUNTING POLICIES
Basis of preparation
The interim financial statements for the six-month period ended 30 June 2022
have been prepared in accordance with IAS 34 Interim Financial Reporting. It
is unaudited and does not constitute statutory financial statements. The
comparative interim financial information covers the period ended 30 June
2021.
The interim financial statements have been prepared on a basis consistent
with, and on the basis of, the accounting policies set out in the audited
financial statements of the Group for the year ended 31 December 2022, which
have been prepared in accordance with International Financial Reporting
Standards as adopted by the United Kingdom.
The interim financial information is presented in British Pound Sterling
("£").
New standards and interpretations
A number of new standards and amendments to standards and interpretations have
been issued by International Accounting Standards Board but are not yet
effective and in some cases have not yet been adopted by the EU. The Directors
do not expect that the adoption of these standards will have a material impact
on the financial statements of the Group in future periods.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of
the Company and entities controlled by the Company (its subsidiaries). Control
is achieved where the Company is exposed to, or has rights to, variable
returns from its involvement with the entity and has the ability to affect
those returns through its power over the entity.
All intercompany transactions, balances, income and expenses are eliminated in
consolidation.
Going concern
The condensed interim financial statements have been prepared on a going
concern basis, which assumes that the Group will continue to be able to meet
its liabilities as they fall due for the foreseeable future.
The Covid-19 pandemic has been unprecedented in scale and impact, and the
Group have taken swift and decisive action to protect our customers,
colleagues, franchisees and their staff and the communities in which the Group
operates, by implementing the necessary steps to safeguard the business
through the crisis, in line with the government guidelines.
The significant impact of Covid-19 to the Group business is summarised below:
· Delay in franchisee restaurant engagement. - Due to MCO (movement
control order) announced by Malaysian Government, the launch the new franchise
restaurants was being delayed
· Working capital inflow of fund are lagging behind initial plan.
The Group has arranged additional short-term financing from directors if
required to support continuity of business operations
· This might impact the business revenue of franchisees, and reduce
the royalty payment that is by percentage of gross revenue sales.
Based on the current working capital forecast, the Group is unlikely to need
additional funds within twelve months of the date of approval of these
financial report in order to maintain its proposed work levels and to continue
successfully managing its cash resources. After making enquiries and
considering the assumptions upon which the forecasts have been based, the
directors have a reasonable expectation that the Group has adequate resources
to continue in operational existence for the foreseeable future. For these
reasons, they continue to adopt the going concern basis of accounting in
preparing the annual financial statements.
Revenue recognition
Revenue is recognised to the extent that it is probable that the economic
benefits will flow to the Group and the revenue can be reliably measured,
regardless of when the payment is made. Revenue is measured at the fair value
of consideration received or receivable, taking into account contractually
defined terms of payment and excluding taxes or duty.
Fees receivable from franchisee according to franchise agreement at which time
the Group has performed its obligation. Fees receivable in advance are stated
on the Consolidated Statement of Financial Position as deferred income.
Leases
The Group assesses whether a contract is or contains a lease, at the inception
of the contract. The Group recognises a right-of-use asset and corresponding
lease liability with respect to all lease arrangements in which it is the
lessee, except for low-value assets and short-term leases with 12 months or
less. For these leases, the Group recognises the lease payments as an
operating expense on a straight-line method over the term of the lease unless
another systematic basis is more representative of the time pattern in which
economic benefits from the leased assets are consumed.
The Group recognises a right-of-use asset and a lease liability at the lease
commencement date. The right-of-use assets and the associated lease
liabilities are presented as a separate line item in the statement of
financial position.
The right-of-use asset is initially measured at cost. Cost includes the
initial amount of the corresponding lease liability adjusted for any lease
payments made at or before the commencement date, plus any initial direct
costs incurred, less any incentives received.
The right-of-use asset is subsequently measured at cost less accumulated
depreciation and any impairment losses, and adjustment for any remeasurement
of the lease liability. The depreciation starts from the commencement date of
the lease. If the lease transfers ownership of the underlying asset to the
Group or the cost of the right-of-use asset reflects that the Group expects to
exercise a purchase option, the related right-of-use asset is depreciated over
the useful life of the underlying asset. Otherwise, the Group depreciates the
right-of-use asset to the earlier of the end of the useful life of the
right-of-use asset or the end of the lease term.
The lease liability is initially measured at the present value of the lease
payments that are not paid at the commencement date, discounted by using the
rate implicit in the lease. If this rate cannot be readily determined, the
Group uses its incremental borrowing rate.
The lease liability is subsequently measured at amortised cost using the
effective interest method. It is remeasured when there is a change in the
future lease payments (other than lease modification that is not accounted for
as a separate lease) with the corresponding adjustment is made to the carrying
amount of the right-of-use asset or is recognised in profit or loss if the
carrying amount has been reduced to zero.
3. REVENUE
The Group revenue are derived from franchise related fees including brand
licence, management fee and royalties according to Restaurant Franchise
Agreement. For the reporting period, revenue contributions are from a
franchisee located in Kuala Lumpur, Malaysia and Bangkok Thailand.
There are no seasonal factors that materially affect the operations of the
Group.
4. INCOME TAX EXPENSE
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.
5. PROFIT / (LOSS) PER SHARE
Basic profit / (loss) per ordinary share is calculated by dividing the loss
attributable to equity holders of the company by the weighted average number
of ordinary shares in issue during the period. Diluted earnings per share is
calculated by adjusting the weighted average number of ordinary shares
outstanding to assume conversion of all dilutive potential ordinary shares.
There are currently no dilutive potential ordinary shares.
6 months period ended 6 months period ended
30-Jun-22 30-Jun-21
£ £
Profit / Loss for the period 54,846 (5,404)
Weighted average number of shares (Unit) 13,350,000 12,216,298
Profit / (Loss) per share (pence) 0.41 p (0.04) p
6. INTANGIBLE ASSETS
Intangible assets refers to intellectual property rights in restaurant concept
brand of HAVANA Rolled Cigar Music Café including their recipes and
collection of Cuban/Havana graphics acquired at the cost of £100,000 from
Typical Dutch N.V.
The asset acquired has indefinite useful life and will be reviewed for
impairment annually to determine whether the indefinite life continues to be
supportable. If not, the change in useful life from indefinite to finite is
made on a prospective basis.
7. RIGHT-OF-USE ASSETS
The Company has entered into a non-cancellable operating lease agreement for
tenancy of office space. The lease is for a period of 36 months operating
lease agreement commencing 1 January 2021 with an option to renew the lease
for a further 12 months.
£
Cost 91,266
Accumulated depreciation (45,633)
As at 30 June 2022 45,633
8. STATED CAPITAL
Number of ordinary shares £
As at 1 January 2022 13,350,000 1,224,400
As at 30 June 2022 13,350,000 1,224,400
9. OTHER PAYABLES
6 months 6 months
period ended period ended
30-Jun-22 30-Jun-21
£ £
Other Creditors (5,350) 34,852
Deferred Income 204,167 76,667
Amount owing to Director 318 -
Lease Liability 15,351 -
Accruals and Provision - 22,739
214,486 134,258
10. LEASE LIABILITIES
6 months period ended 6 months period ended
30-Jun-22 30-Jun-21
£ £
As at 1 January 67,203 48,119
Addition during the year - 100,805
De-recognition of lease due to termination - (48,119)
Interest in suspense (4,670) (9,538)
Interest expensed 1,976 2,446
Repayment of principal (16,801) (16,806)
50,402 76,907
Lease liabilities are payable as follow:
Within 1 year 16,800
Between 2- 5 years 33,602
11. RELATED PARTY TRANSACTION
The directors are considered to be the key management personnel. Details
concerning Directors' remuneration can be found below:
6 months period ended 30-Jun-22 6 months period ended 30-Jun-21
£ £
Robert Pincock 7,500 7,500
Abd Hadi Bin Abd Majid 5,000 5,000
Maurice James Malcolm Groat 2,000 2,000
14,500 14,500
12. SUBSEQUENT EVENTS
There were no subsequent events after the reporting period.
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