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MEDI - Medilink Global UK News Story

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Last Trade - 13/06/17

Sector
Healthcare
Size
Micro Cap
Market Cap £n/a
Enterprise Value £n/a
Revenue £1.78m
Position in Universe th / 1826

Medilink-Global UK - Final Results - Part 2

Mon 27th June, 2016 2:53pm
- Part 2: For the preceding part double click  ID:nRSa3843Ca 

interest method.  Borrowings are classified as current liabilities unless the
Group has an unconditional right to defer settlement of the liability for at
least 12 months after the statement of financial position date. 
 
Trade and other payables 
 
Trade and other payables are stated initially at their fair value and
subsequently measured at amortised cost using the effective interest method
unless the effect of discounting would be immaterial, in which case they are
stated at cost. 
 
Equity instruments 
 
Equity instruments issued by the Group are recorded at the proceeds received,
net of direct issue costs. 
 
xxii.        Impairment of assets 
 
(a)  Financial assets 
 
A financial asset is assessed at each reporting date to determine whether
there is any objective evidence that it is impaired. A financial asset is
considered to be impaired if objective evidence indicates that one or more
events have had a negative effect on the estimated future cash flows of that
asset. 
 
An impairment loss in respect of a financial asset measured at amortised cost
is calculated as the difference between its carrying amount, and present value
of the estimated future cash flows discounted at the original effective
interest rate. An impairment loss in respect of an available-for-sale
financial asset is calculated by reference to its fair value. 
 
Individually significant financial assets are tested for impairment on an
individual basis. The remaining financial assets are assessed collectively in
groups that share similar credit risk characteristics. 
 
An impairment loss is recognised in the statement of comprehensive income. Any
cumulative loss in respect of an available-for-sale financial asset recognised
previously in equity is transferred to the statement of comprehensive income. 
 
An impairment loss is reversed if the reversal can be related objectively to
an event occurring after the impairment loss was recognised. For financial
assets measured at amortised cost and available-for-sale financial assets that
are debt securities, the reversal is recognised in the statement of
comprehensive income. For available-for-sale financial assets that are equity
securities, the reversal is recognised directly in equity. 
 
(b)  Non-financial assets 
 
The carrying amounts of the Group's non-financial assets, other than deferred
tax assets, are reviewed at each reporting date to determine whether there is
any indication of impairment. If any such indication exists, then the asset's
recoverable amount is estimated. For assets that have indefinite lives, the
recoverable amount is estimated at each reporting date. 
 
The recoverable amount of an asset or cash-generating unit is the greater of
its value in use and its fair value less costs to sell. In assessing value in
use, the estimated future cash flows are discounted to their present value
using a pre-tax discount rate that reflects current market assessments of the
time value of money and risk specific to the asset. For the purpose of
impairment testing, assets are grouped together into the smallest group of
assets that generates cash inflows from continuing use that are largely
independent of the cash inflows of other assets or groups of assets (the "cash
generating unit"). The goodwill acquired in a business combination, for the
purpose of impairment testing, is allocated to cash-generating units that are
expected to benefit from the synergies of the combination. 
 
An impairment loss is recognised if the carrying amount of an asset or its
cash generating unit exceeds its estimated recoverable amount. Impairment
losses are recognised in the statement of comprehensive income. Impairment
losses recognised in respect of cash generating units are allocated first to
reduce the carrying amount of any goodwill allocated to the units and then to
reduce the carrying amount of the other assets in the unit (or group of units)
on a pro rata basis. 
 
An impairment loss in respect of goodwill is not reversed. In respect of other
assets, impairment losses recognised in prior periods are assessed at each
reporting date for any indications that the loss has decreased or no longer
exists. An impairment loss is reversed if there has been a change in the
estimates used to determine the recoverable amount. An impairment loss is
reversed only to the extent that the asset's carrying amount does not exceed
the carrying amount that have been determined, net of depreciation or
amortisation, if no impairment loss had been recognised. 
 
xxiii.       Cash and cash equivalents 
 
For the purpose of the statements of cash flows, cash and cash equivalents
include cash in hand, deposits, bank balances, demand deposits and other short
term, highly liquid investments that are readily convertible to known amounts
of cash and which are subjected to an insignificant risk of change in value. 
 
xxiv.        Share capital 
 
Ordinary shares are recorded at nominal value and proceeds received in excess
of nominal value of shares issued, if any, are accounted for as share premium.
 Both ordinary shares and share premium are classified as equity.  Costs
incurred directly to the issue of shares are accounted for as a deduction from
share premium, otherwise they are charged to the statement of comprehensive
income. 
 
xxv. Events after the balance sheet date 
 
Post period-end events that provide additional information about the Group's
position are reflected in the financial statements.  Post period-end events
that are not adjusting events are disclosed in the notes when material. 
 
xxvi.        Contingent liabilities and contingent assets 
 
A contingent liability is a possible obligation that arises from past events
and whose existence will only be confirmed by the occurrence or non-occurrence
of one or more uncertain future events not wholly within the control of the
Group.  It can also be a present obligation arising from past events that is
not recognised because it is not probable that outflow of economic resources
will be required or the amount of obligation cannot be measured reliably. 
 
A contingent liability is not recognised but is disclosed in the notes to the
accounts.  When a change in the probability of an outflow occurs so that the
outflow is probable, it will then be recognised as a provision. A contingent
asset is a possible asset that arises from past events and whose existence
will be confirmed only by the occurrence or non-occurrence of one or more
uncertain events not wholly within the control of the Group. Contingent assets
are not recognised but are disclosed in the notes to the accounts when an
inflow of economic benefits is probable.  When inflow is virtually certain, an
asset is recognised. 
 
xxvii.       Pensions 
 
The Group makes no other contributions to individual pension schemes except
for the contributions to defined contribution plans, including the Employees'
Provident Fund, the national defined contribution plan in Malaysia, the
Central Provident Fund in Singapore and basic pension insurance in China for
all the employees in the respective countries. 
 
xxviii.     Leased assets 
 
Operating lease 
 
Operating lease rentals are included in the determination of the operating
profit or loss for the period in accordance with the contracted lease payment
agreement. 
 
xxix.        Discontinued operation 
 
A discontinued operation is a component of the Group's business that
represents a separate major line of business or geographical area of
operation, which has been disposed of or is held for sale, or is a subsidiary
acquired exclusively with a view to resale. Classification as a discontinued
operation occurs upon disposal or when the operation meets the criteria to be
classified as held for sale, if earlier. When an operation is classified as a
discontinued operation, the comparative statement of comprehensive income is
re-presented as if the operation had been discontinued from the start of the
comparative period. 
 
xxx. Assets held for sale 
 
Non-current assets, or disposal groups comprising assets and liabilities, are
classified as held-for-sale if it is highly probable that they will be
recovered primarily through sale rather than through continuing use. 
 
Such assets, or disposal groups, are generally measured at the lower of their
carrying amount and fair value less costs to sell. Any impairment loss on
disposal group is allocated first to goodwill, and then to the remaining
assets and liabilities on a pro rata basis, except that no loss is allocated
to inventories, financial assets or deferred tax assets, which continue to be
measured in accordance with the Group's other accounting policies. Impairment
losses on initial classification held-for-sale and subsequent gains and losses
on re-measurement are recognized in profit or loss. 
 
Once classified as held for sale, intangible assets and property, plant and
machinery are no longer amortised or depreciated, and any equity accounted
investee is no longer equity accounted. 
 
xxxi.        Employee benefits 
 
(a)  Short term employee benefits 
 
Wages, salaries, annual leave and sick leave, social security contributions,
bonuses and non-monetary benefits are accrued in the period in which the
associated services are rendered by the employees. 
 
(b)  Post-employment benefits 
 
Contributions to defined contribution plans, including the Employees'
Provident Fund, the national defined contribution plan in Malaysia, the
Central Provident Fund in Singapore and basic pension insurance in China are
charged to the statement of comprehensive income in the period to which they
are related. A defined contribution plan is a pension plan under which the
Group pays fixed contributions and will have no legal or constructive
obligations to pay further contributions if the fund does not hold sufficient
assets to pay all employee benefits relating to employee service in the
current or prior financial periods. Once the contributions have been paid, the
Group has no further payment obligations. 
 
xxxii.      Significant accounting estimates and judgements 
 
Estimates, assumptions and judgements concerning the future are made in the
preparation of the financial statements. They affect the application of the
Group's accounting policies, reported amounts of assets, liabilities, income
and expenses and disclosures made. They are assessed on an ongoing basis and
are based on experience and relevant factors, including expectations of future
events that are believed to be reasonable under the circumstances. 
 
Key sources of estimation uncertainty 
 
The key assumptions concerning the future and other key sources of estimation
uncertainty at the statement of financial position date, that have a
significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial period are as stated below: 
 
(a)   Carrying value of goodwill - Group 
 
The Group follows the guidance of IAS 36 in determining whether goodwill is
impaired. This determination requires the assumption made regarding the
duration and extent to which the fair value of the goodwill is less than its
costs and the financial health of and near-term business outlook for the
goodwill. 
 
Management's assessment for impairment of goodwill is based on the estimation
of value in use of the cash-generating unit ("CGU") by forecasting the
expected future cash flows for a period of up to five years, using a suitable
discount rate in order to calculate the present value of those cash flows. 
 
Impairment testing inherently involved a number of judgmental areas: the
preparation of cash flow forecasts for periods that are beyond the normal
requirements of management reporting; the assessment of the discount rate
appropriate to the business; estimation of the fair value of cash-generating
units; and the valuation of the separable assets of each business whose
goodwill is being reviewed. 
 
The methods, assumptions, sensitivity and possible outcomes in relation to the
calculation of the estimates are detailed in note 10. 
 
(b)   Carrying value of investment and long term loan in subsidiaries -
Company 
 
The Company follows the guidance of IAS 36 in determining whether investment
in and long term loans to subsidiaries are impaired. This determination
requires the assumption made regarding the duration and extent to which the
fair value of an investment or a financial asset is less than its costs and
the financial health of and near-term business outlook for the investment or
financial asset. The Company has a sole direct investment in Medilink-Global
(Asia) Pte Ltd, which then owns the other entities in the group. 
 
Management's assessment for impairment of investment and long term loans in
subsidiaries is based on the estimation of value in use of the cash-generating
unit ("CGU") by forecasting the expected future cash flows for a period of up
to five years, using a suitable discount rate in order to calculate the
present value of those cash flows. 
 
Impairment testing inherently involved a number of judgmental areas: the
preparation of cash flow forecasts for periods that are beyond the normal
requirements of management reporting; the assessment of the discount rate
appropriate to the business; estimation of the fair value of cash-generating
units; and the valuation of the separable assets of each business in the
sub-group. 
 
As Medilink-Global (Asia) Pte Ltd forms an individual sub-group, the Company
has assessed the recoverability of the investment and long term loans on the
underlying value of this sub-group. In this respect, the methods, assumptions,
sensitivity and possible outcomes in relation to the calculation of the
estimates are detailed in note 10 as they are the same as those used on the
impairment review of the carrying value of goodwill. 
 
3.         Business segments 
 
The Group applies IFRS 8 Operating Segments. Per IFRS 8 operating segments are
based on internal reports about components of the group, which are regularly
reviewed and used by the Board of Directors being the Chief Operating Decision
Maker ("CODM") for strategic decision making and resource allocation, in order
to allocate resources to the segment and to assess its performance. The
Group's reportable operating segments are as follows: 
 
i) Third party administrator 
 
ii) Software licensing 
 
The CODM monitors the operating results of each segment for the purpose of
performance assessments and making decisions on resource allocation. The
management has organised the entity based on differences in products and
services. Third party administrator segment is derived from aggregating
Malaysia and Singapore entity while software licensing segment represent a
single entity from Malaysia.  Performance is based on external and internal
revenue generations and profit before tax, which the CODM believes are the
most relevant in evaluating the results relative to other entities in the
industry. Segment assets and liabilities are presented inclusive of
inter-segment balances, as inter-segment pricing. Information regarding each
of the operations of each reportable segment is included below. 
 
 2015                            Third party administrator  Software licensing  Consolidation  Total    
                                 £'000                      £'000               £'000          £'000    
 External revenue                1,290                      250                 -              1,540    
 Internal revenue                133                        79                  (212)          -        
 Total revenue                   1,423                      329                 (212)          1,540    
                                                                                                        
 Interest expenses               44                         -                   -              44       
 Depreciation and  amortisation  59                         1                   -              60       
 Impairment loss                 -                          -                   (322)          (322)    
 Earnings before tax (EBT)       94                         (13)                254            335      
                                                                                                        
 Assets                          4,404                      152                 (1,259)        3,297    
 Liabilities                     (5,616)                    (284)               2,931          (2,969)  
 
 
The assets of third party administrator are including the goodwill on
consolidation of £1,257,000 (2014: £1,257,000) 
 
Revenues from a single customer amounted to £280,142 (2014: £263,249) arising
from sales by third party administrator segment. 
 
 2014                            Third party administrator  Software licensing  Consolidation  Total    
                                 £'000                      £'000               £'000          £'000    
 External revenue                1,296                      109                 -              1,405    
 Internal revenue                133                        90                  (223)          -        
 Total revenue                   1,429                      199                 (223)          1,405    
                                                                                                        
 Interest expenses               38                         -                   -              38       
 Depreciation and  amortisation  80                         1                   -              81       
 Impairment loss                 (1,700)                    -                   -              (1,700)  
 Earnings before tax (EBT)       (2,097)                    (8)                 174            (1,931)  
                                                                                                        
 Assets                          4,654                      185                 (741)          4,098    
 Liabilities                     (6,810)                    (326)               3,092          (4,044)  
 
 
The geographical split of revenue and non-current assets arises as follows: 
 
 2015               Jersey  Singapore  Malaysia  Discontinued Operation (China)  Total  
                    £'000   £'000      £'000     £'000                           £'000  
 Revenue            3       539        998       -                               1,540  
 Intangible assets  -       -          194       -                               194    
 Goodwill           1,338   -          -         -                               1,338  
 PPE                -       -          35        -                               35     
                                                                                 
                                                                                              
 
 
 2014                Jersey  Singapore  Malaysia  Discontinued Operation (China)  Total    
                     £'000   £'000      £'000     £'000                           £'000    
 Revenue (restated)  -       643        762       -                               1,405    
 Intangible assets   -       -          167       -                               167      
 Goodwill            1,338   -          -         -                               1,338    
 PPE                 -       -          75        -                               75       
                                                                                           
                                                                                                     
 
 
The geographical split of revenue reflects the continued operation same as its
comparative period. 
 
4.         Loss from operations 
 
Loss from operation has been arrived at after charging: 
 
                                                       2015   2014   
                                                       £'000  £'000  
 Unrealised loss/(gain) on exchange difference         (33)   65     
 Depreciation                                          49     61     
 Amortisation of intangible assets                     11     20     
 Auditor remuneration - audit of the company accounts  21     21     
 Impairment of goodwill                                -      1,700  
 Operating lease payment                               20     184    
 
 
5.         Directors emoluments 
 
                          2015   2014   
                          £'000  £'000  
 Directors' remuneration  30     30     
 Directors' fees          28     28     
                          58     58     
 
 
All the executive directors have a fixed base fee or salary and participate in
discretionary bonus arrangement, according to the performance as determined by
the Remuneration Committee. 
 
Details of the directors' emoluments are set out below. 
 
                 2015   2014   
                 £'000  £'000  
 Executive                     
 Shia Kok Fat    46     46     
                               
 Non-executive                 
 Norman Lott     12     12     
 Chen Shien Yee  -      -      
                               
 Total           58     58     
 
 
6.         Staff costs 
 
                             2015   2014   
                             £'000  £'000  
 Wages and salaries          245    686    
 Defined contribution plans  21     140    
                             266    826    
                                           
 
 
7.         Finance expenses 
 
                                                2015   2014   
                                                £'000  £'000  
 Finance cost bank borrowing and hire purchase  26     20     
 Other interest                                 18     18     
                                                44     38     
                                                              
 
 
8.         Taxation 
 
                                               2015   2014       
                                               £'000  £'000      
 Current tax charge                            -      -          
 Deferred tax                                  13     -          
                                               13     -          
                                                               
 Factors affecting tax charge:                                   
 Loss before tax                               335    (1,931)    
                                                                 
 Tax at the corporate rate 23.5% (2014:23.5%)  79     (454)      
 Tax effects of:                                                 
 - Non taxable income                          (58)   -          
 - Non deductible expenses                     5      400        
 - Tax loss not recognised                     (13)   54         
 - Difference in overseas tax rate             -      -          
                                               13     -          
                                                                 
                                                                         
 
 
The applicable tax of the Group is derived from the consolidation of all Group
companies applicable tax band on their domestic tax rates. 
 
9.         Property, plant and equipment 
 
GROUP 2015 
 
                           Computer, office equipment  EDC  terminals  Furniture, fitting & renovation  Motor vehicles  Total  
                           £'000                       £'000           £'000                            £'000           £'000  
 Cost                                                                                                                          
 As at 1 January 2015      302                         352             76                               17              747    
 Exchange differences      (48)                        (49)            (12)                             (2)             (111)  
 Additions                 7                           -               17                               -               24     
 Disposal                  -                           -               -                                -               -      
 As at 31 December 2015    261                         303             81                               15              660    
                                                                                                                               
 Accumulated depreciation                                                                                                      
 As at 1 January 2015      245                         341             76                               10              672    
 Exchange differences      (38)                        (49)            (8)                              (1)             (96)   
 Depreciation              37                          1               8                                3               49     
 Disposal                  -                           -               -                                -               -      
 As at 31 December 2015    244                         293             76                               12              625    
                                                                                                                               
 Net book value            17                          10              5                                3               35     
 
 
A motor vehicle with the carrying amount of £3,000 (2014: £7,000) was acquired
by hire purchase and is pledged as security for liabilities. 
 
GROUP 2014 
 
                           Computer, office equipment  EDC terminals  Furniture, fitting & renovation  Motor vehicles  Total  
                           £'000                       £'000          £'000                            £'000           £'000  
 Cost                                                                                                                         
 As at 1 January 2014      434                         440            93                               33              1,000  
 Additions                 12                          1              -                                -               13     
 Assets held for sale      (144)                       (89)           (17)                             (16)            (266)  
 As at 31 December 2014    302                         352            76                               17              747    
                                                                                                                              
 Accumulated depreciation                                                                                                     
 As at 1 January 2014      320                         404            91                               22              837    
 Depreciation              49                          4              4                                4               61     
 Assets held for sale      (124)                       (67)           (19)                             (16)            (226)  
 As at 31 December 2014    245                         341            76                               10              672    
                                                                                                                              
 Net book value            57                          11             -                                7               75     
 
 
10.     Intangible assets 
 
 2015                      Intellectual Property  
                           Goodwill               Trademark  System software  Contracted customers  Total  
                           £'000                  £'000      £'000            £'000                 £'000  
 Cost                                                                                                      
 As at 1 January 2015      4,138                  2          433              213                   4,786  
 Additions                                                   38                                     38     
 As at 31 December 2015    4,138                  2          471              213                   4,824  
                                                                                                           
 Amortisation                                                                                              
 As at 1 January 2015      2,800                  2          266              213                   3281   
 Amortisation              -                      -          11               -                     11     
 Provision for impairment  -                      -          -                -                     -      
 As at 31 December 2015    2,800                  2          277              213                   3,292  
                                                                                                           
 Net book value                                                                                            
 As at 31 December 2015    1,338                  -          194              -                     1,532  
 
 
 2014                      Intellectual Property  
                           Goodwill               Trademark  System software  Contracted customers  Total  
                           £'000                  £'000      £'000            £'000                 £'000  
 Cost                                                                                                      
 As at 1 January 2014      4,138                  2          348              213                   4,701  
 Additions                 -                      -          85               -                     85     
 As at 31 December 2014    4,138                  2          433              213                   4,786  
                                                                                                           
 Amortisation                                                                                              
 As at 1 January 2014      1,100                  2          246              213                   1,561  
 Amortisation              -                      -          20               -                     20     
 Provision for impairment  1,700                  -          -                -                     1,700  
 As at 31 December 2014    2,800                  2          266              213                   3,281  
                                                                                                           
 Net book value                                                                                            
 As at 31 December 2014    1,338                  -          167              -                     1,505  
 
 
The amortisation recognised in respect of intellectual property has been
included in the line item, administrative expenses in the consolidated
statement of income. 
 
Description of intangible assets 
 
Goodwill arising on the acquisition of the subsidiaries represents the excess
of the cost of acquisition over the Group's interest in the net fair value of
the identifiable assets, liabilities and contingent liabilities of the
subsidiaries recognised at the date of acquisition. Goodwill is initially
recognised as an asset at cost and is subsequently measured at cost less any
accumulated impairment losses. The carrying value of goodwill is allocated to
the respective segments as follows: - 
 
                                   2015£'000  2014£'000  
 Third party administrator         1,257      1,257      
 Software licensing                81         81         
 Total carrying value of goodwill  1,338      1,338      
 
 
System software comprises Electronics Claims Clearance System and Loyalty
Programme software. The system software is initially recognised based on the
cost that would be incurred in re-creating the asset and subsequently
amortised based on straight-line method over a period of three years.
Contracted customers are the existing customers of the acquired subsidiaries.
The contracted customers are initially recognised based on the estimated net
present value of the service contracts entered into between the customers and
subsidiaries acquired and is subsequently amortised based on straight-line
method over a period of five years. The recoverable amount of cash generating
unit is determined based on value in use calculation as set out below. 
 
The goodwill and other intangible assets are reviewed for impairment annually
or more frequently if events or changes in circumstances indicate that the
assets might be impaired. The 2015 review was undertaken in the first quarter
of year 2016 and the impairment of goodwill amounting to £nil (2014:
£1,700,000) is recognised in the income statement. The impairment provision
was to reflect the loss control of the operating segment in China as well as
the ongoing economic uncertainty impact on the group's operation. 
 
Management have approved the forecast for 2016 and have prepared additional
projections based on the 2015 numbers for the next five years. This was used
as the basis for determining the recoverable amount of each CGU. 
 
In conducting the review we used a market beta of 4 and a growth rate as
below: 
 
The growth rate ranges from 5% to 54% per year with an average of 34% with a
peak in growth due to new prospect for technologies and solutions from
overseas over the next 2-3 years. The discount rate applied had been set at
25%. 
 
Management are satisfied that there are no reasonably possible changes in key
assumptions, which would cause the recoverable amount of any of our GGUs to be
below their carrying amount. 
 
The key assumptions used in the forecast are as follows: 
 
                Assumption (%)  
 Growth Rate    5% - 50%        
 Discount Rate  25%             
 
 
Sensitivity analysis 
 
A sensitivity analysis has been carried out for each CGU. The results of the
analysis can be summarised as follow: 
 
If the estimated growth rate to forecast the revenue had been 10 percentage
point lower than the basis assumption, total recoverable amount would be 20%
lower. 
 
If the estimated discount rate used for the Group's discount cash flow had
been one percentage point higher than the starting assumption of 25%, total
recoverable amount would be 2% lower. 
 
These calculations are hypothetical and should not be viewed as an indication
that these figures are any more or less likely to be changed. The sensitivity
analysis should therefore be interpreted with caution. 
 
11.     Investments 
 
 Company                           2015£'000  2014£'000  
                                                         
 Cost                                                    
 Balance as at 1 January           4,500      4,500      
 Additions                         -          -          
 Balance as at 31 December         4,500      4,500      
                                                         
 Impairment                                              
 Balance as at 1 January           3,000      1,450      
 Impairment loss recognised        -          1,550      
 Balance as at 31 December         3,000      3,000      
                                                         
 Net book value as at 31 December  1,500      1,500      
 
 
Details of the subsidiaries: 
 
 Name of subsidiaries                      Country of incorporation  Principal activities                                                                                                                                           2015% of ownership interest held  2014% of ownership interest held  
                                                                                                                                                                                                                                    Direct                            Indirect                          Direct  Indirect  
 Medilink-Global (Asia) Pte Ltd            Singapore                 Investment holding and provision of third party administrator services                                                                                         100%                              -                                 100%    -         
 Medilink (Beijing) TPA Services Co., Ltd  People Republic of China  Provision of third party administrator services                                                                                                                -                                 49%                               -       100       
 MedilinkGlobal (Malaysia) Sdn Bhd         Malaysia                  Provision of third party administrator services                                                                                                                -                                 100%                              -       100       
 Datalink Technologies Sdn Bhd             Malaysia                  Provision of project management, facilities management and provision of system integration services to the third party administration and insurance companies  -                                 100%                              -       100       
 Medilink-Global TPA Pte Ltd               Singapore                 Provision of third party administrator services                                                                                                                -                                 70%                               -       70        
 Medilink-Global (HK) Ltd                  Hong Kong                 Dormant                                                                                                                                                        -                                 100%                              -       100       
 
 
Trade investments 
 
 Name of Company             Country of incorporation  Principal activities                             2015% held  2014% held  
 Medilink (Thailand) Co Ltd  Thailand                  Provision of third party administrator services  19          19          
 
 
The forecast assumptions and sensitivity analysis for the impairment review
are included in Note 10. 
 
12.     Investment in associate 
 
                                           Investment  Loan to associates  Total  
                                           £'000       £'000               £'000  
 Cost                                                                             
 Balance as at 1 January 2015              -           -                   -      
 Reclassified long term receivables        -           322                 322    
 Transfer from investment in subsidiaries  650         -                   650    
 Balance as at 31 December 2015            650         322                 972    
                                                                                  
 Impairment                                                                       
 Balance as at 1 January 2015              -           -                   -      
 Impairment loss recognized                -           (322)               (322)  
 Transfer from investment in subsidiaries  (650)       -                   (650)  
 Balance as at 31 December                 (650)       (322)               (972)  
                                                                                  
 Net book value as at 31 December 2015     -           -                   -      
 
 
On 10 July 2015, Medilink (Beijing) TPA Services Co., Ltd became an indirect
held associate undertakings (see Note 21). 
 
13.     Trade and other receivables 
 
Group 
 
                                     2015   2014   
                                     £'000  £'000  
                                                   
 Current assets                                    
 Trade and other receivables         1,157  1,388  
 Less: Provision of Impairment Loss  -      -      
                                     1,157  1,388  
                                                   
 
 
Company 
 
                                                             2015     2014     
                                                             £'000    £'000    
 Non-current asset                                                             
 Other receivable                                                     -        
 Amount owed by Group undertakings                           2,237    2,487    
 Less: Provision against amounts owed by Group undertakings  (2,237)  (2,487)  
                                                             -        -        
                                                                                   
 
 
As at 31 December 2015, trade and other receivables of £822,000 (2014:
£904,000) were past due but not impaired. It is management's belief that these
debts will be fully repaid by reference to no default experience to date. In
determining the recoverability of trade and other receivables, the Group
considers any change in the credit quality of the trade receivables from the
date credit was initially granted up to the reporting date. 
 
                    Gross 2015£'000  Impairment2015£'000  Gross2014£'000  Impairment2014£'000  
 Current            335              -                    484             -                    
 31 - 60 days       121                                   127                                  
 61 - 90 days       50               -                    13              -                    
 More than 90 days  651              -                    764             -                    
                    1,157            -                    1,388           -                    
                                                                                               
 
 
The carrying amounts of the Group's trade and other receivables are
denominated in the following currencies: 
 
                               2015   2014   
                               £'000  £'000  
 Malaysia Ringgit              1,005  1,284  
 Singapore Dollar              141    94     
 Great Britain Pound Sterling  11     10     
                               1,157  1,388  
 
 
Financial asset 
 
The Group's financial assets by each financial instrument category are as
follows:- 
 
                                  2015   2014   
                                  £'000  £'000  
 Trade receivables                970    1,318  
 Amount due from related company  110    -      
 Other receivables                77     70     
 Cash and cash equivalents        573    254    
 Total                            1,730  1,642  
 
 
14.     Cash and cash equivalents 
 
Group 
 
                        2015   2014   
                        £'000  £'000  
 Cash and bank balance  573    254    
                        573    254    
 
 
Company 
 
                        2015   2014   
                        £'000  £'000  
 Cash and bank balance  4      1      
                        4      1      
                                      
 
 
15.     Trade and other payables 
 
Group 
 
                               2015   2014   
                               £'000  £'000  
 Trade payables                1,383  1,174  
 Other payables                628    913    
 Amount owed to a shareholder  561    501    
 Amount owed to directors      50     40     
                               2,622  2,628  
 
 
Company 
 
                 2015   2014   
                 £'000  £'000  
 Other payables  823    842    
                 823    842    
 
 
The carrying amount of trade and other payables approximates to their fair
value. 
 
It is the Group's policy to pay suppliers in accordance with the terms of
business agreed with them. The number of days of trade purchases outstanding
for the Group at the year end was 90 days (2014: 90 days). 
 
The carrying amounts of the Group's trade and other payables are denominated
in the following currencies: 
 
                               2015   2014   
                               £'000  £'000  
 Malaysia Ringgit              1,662  1,843  
 Singapore Dollar              154    106    
 Great Britain Pound Sterling  805    678    
 Hong Kong Dollar              1      1      
                               2,622  2,628  
 
 
Financial liabilities 
 
The group's financial liabilities by each financial instrument category are as
follows:- 
 
                               2015   2014   
 Amortised cost                £'000  £'000  
 Trade and other payables      2,011  2,087  
 Amount owed to director       50     40     
 Amount owed to a shareholder  561    501    
 Finance lease                 3      3      
 Total                         2,625  2,631  
                                             
 
 
Gross maturity analysis of the financial liabilities is as follows: 
 
                                           2015   2014   
 Non derivatives                           £'000  £'000  
 Within 1 year                             2,475  2,090  
 Later than 1 year not later than 5 years  150    541    
 Greater than 5 years                      -      -      
 Total                                     2,625  2,631  
 
 
16.     Deferred taxation 
 
Movements in deferred tax liability for the Group during the year are as
follows: 
 
                            2015   2014   
                            £'000  £'000  
 Balance as at 1 January    44     44     
 Movement in deferred tax   13     -      
 Balance as at 31 December  57     44     
 
 
Deferred tax asset of £141,000 (2014: £138,000) arising from the unused tax
losses has not been recognised and there is no expiry period for the said
unrecognised deferred tax assets. 
 
17.     Advance from a director 
 
Group 
 
                          2015   2014   
                          £'000  £'000  
                                        
 Advance from a director  118    118    
                          118    118    
 
 
Company 
 
                          2015   2014   
                          £'000  £'000  
                                        
 Advance from a director  118    118    
                          118    118    
 
 
The terms and conditions of the advance are as follows:- 
 
i)    It carries interest at 6% per annum; 
 
18.     Term loan 
 
Group 
 
                                       2015   2014   
                                       £'000  £'000  
                                                     
 Borrowing from financial institution  169    161    
                                       169    161    
 
 
The terms and conditions of term loans are as below:- 
 
(i)   It carries interest at 13% per annum; 
 
(ii)   The maturity of principal on 15 October 2016. The term loan shall auto
renew for another one (1) year, on similar terms and conditions as stated
herein or shall be mutually agreed in writing between both parties 
 
19.     Share capital 
 
The Company has one class of ordinary share capital which carries no rights to
fixed income, any preferences or restrictions. 
 
                                        2015   2014   
                                        £'000  £'000  
 Ordinary shares issued and fully paid                
 At 1 January                           6,074  6,045  
 Additions                              -      29     
 At 31 December                         6,074  6,074  
 
 
As at 31 December 2015, the total issued share capital were 121,492,003
ordinary shares. 
 
 20.     Earnings per share            
 
 
Basic earnings per share is calculated by dividing the earning attributable to
equity holders of the Company by the weighted average number of ordinary
shares in issue during the period. The diluted earning per share was not
applicable as there were no dilutive potential ordinary shares outstanding at
the end of reporting period. 
 
                                                                                         2015         2014         
 Profit/(loss) after taxation attributable to owners of the company (£'000)                                        
 -   Continued operation                                                                 322          (1,931)      
 -   Discontinued operation                                                              (57)         (61)         
                                                                                         265          (1,992)      
                                                                                                                   
 Basic weighted average shares in issue                                                  121,492,003  121,091,163  
 Basic earning/(loss) per share based on issued share capital as at 31 December (pence)  0.21         (1.64)       
 
 
21.     Medilink (Beijing) TPA Services Co Limited ("Medilink China") 
 
On 1 August 2014, the Group publicly announced the divestment of 51% interest
in Medilink (Beijing) TPA Services Co Limited ("Medilink China"), a wholly
owned subsidiary, to Selfdoctor (Beijing) Technology Co Limited ("Selfdoctor")
for a nominal consideration of RMB 10.00 (approximately £1.00) (the
"Divestment"). The Group retains a 49% interest in Medilink China. 
 
On 10 July 2015, the divestment completed when the transfer of ownership
actually took place. At 31 December 2014, Medilink China was classified as a
disposal group held for sale and as discontinued operations. 
 
Details of the carrying value of identifiable assets and liabilities disposed
of and sales consideration is, as follow: 
 
                                                        2015   
                                                        £'000  
                                                               
 Consideration                                          -      
 Investment retained in Medilink China at fair value    -      
 Net liabilities disposed of (see below)                783    
                                                               
 Gain on disposal                                       783    
 
 
The business of Medilink China represents the entirety of the Group's
operating segment in China. With Medilink China being classified as
discontinued operations, the China operating segment is no longer presented as
an operating segment. The results of Medilink China for the year are presented
below: 
 
                                                 2015   2014   
                                                 £'000  £'000  
 Revenue                                         407    886    
 Expenses                                        (462)  (944)  
 Operating income                                -      1      
 Finance costs                                   (2)    (4)    
                                                               
 Loss before tax from discontinued operations    (57)   (61)   
 Taxation                                        -      -      
                                                               
 Loss for the year from discontinued operations  (57)   (61)   
                                                               
                                                               
 
 
The major classes of assets and liabilities of Medilink China classified as
assets held for sale as at 10 July 2015 and 31 December 2014 are, as follow: 
 
                                                            2015   2014   
                                                            £'000  £'000  
 Property, plant and equipment                              35     46     
 Trade and other receivables                                800    787    
 Cash and cash equivalents                                  180    43     
                                                                          
 Assets held for sale                                       1,015  876    
                                                                          
                                                                          
 Trade and other payables                                   1,588  889    
 HP creditors                                               -      1      
 Loan from a director                                       210    200    
                                                                          
 Liabilities directly associated with assets held for sale  1,798  1,090  
                                                                          
                                                                          
 Net liabilities directly associated with disposal group           214    
                                                                          
 Net liabilities disposed of                                783           
                                                                          
                                                                          
 
 
The net cash flows incurred by Medilink China are, as follow: 
 
                                              2015   2014   
                                              £'000  £'000  
                                                            
 Operating                                    323    329    
 Investing                                    (34)   (34)   
 Financing                                    (246)  (256)  
                                                            
 Net cash inflow/(outflow)                    43     (39)   
                                                            
                                              2015   2014   
 Loss per share from discontinued operations                
 Basic loss per shares (pence)                0.05   0.05   
 
 
22.     Financial instruments 
 
Capital management 
 
The Group's objectives when managing capital are to safeguard the Group's
ability to continue as a going concern in order to provide returns for
shareholders, benefits for other stakeholders and to maintain optimal capital
structure to reduce the cost of capital. Management considers, as part of its
capital, the financial sources of funding from shareholders and third parties.
Our key process for managing capital is regular Board reviews of our capital
structure and needs. 
 
The Group's financial instruments, which are recognised in the statement of
financial position, comprise cash and cash equivalents, receivables and
payables and ordinary shares. The accounting policies and methods adopted,
including the basis of measurement applied are disclosed above, where
relevant. The information about the extent and nature of these recognised
financial instruments, including significant terms and conditions that may
affect the amount, timing and certainty of future cash flows are disclosed in
the respective notes above, where applicable. 
 
The Group does not generally enter into derivative transactions (such as
interest rate swaps and forward foreign currency contracts) and it is, and has
been throughout the year, the Group's policy that no trading in financial
instruments shall be undertaken. 
 
There were no financial instruments not recognised in the statement of
financial position. 
 
Fair values 
 
Management assessed that the fair values of cash and short-term deposits,
trade receivables, trade payables, bank overdrafts and other current
liabilities approximate their carrying amounts largely due to the short-term
maturities of these instruments. 
 
Fair value hierarchy 
 
The Group uses the following hierarchy for determining and disclosing the fair
value of financial instruments which are measured at fair value by valuation
technique: 
 
Level 1: Quoted (unadjusted) prices in active markets for identical assets or
liabilities 
 
Level 2: Other techniques for which all inputs which have a significant effect
on the recorded fair value are observable, either directly or indirectly; 
 
Level 3: Techniques which use inputs that have a significant effect on the
recorded fair value that are not based on observable market data 
 
Set out below is a comparison by class of the carrying amounts and fair value
of the Group's financial 
 
instruments, other than those whose carrying amounts are a reasonable
approximation of fair value: 
 
                    2015     2014   
                    Type     £'000  Type     £'000  
 Carrying value                                     
 Financial assets                                   
 Intangible assets  Level 3  1,338  Level 3  1,338  
                                                    
                                                    
 Fair value                                         
 Financial assets                                   
 Intangible assets  Level 3  1,338  Level 3  1,338  
                                                    
                                                    
 
 
The Group's activities expose it to a variety of financial risks: currency
risk, credit risk, liquidity risk and cash flow interest-rate risk.  These
risks are limited by the Group's financial management policies and practices
as described below: 
 
(a) Credit risks 
 
Credit risk is the risk of financial loss to the Group if a customer or
counterparty to a financial instrument fails to meet its contractual
obligations, and arises principally from the Group's receivables from
customers and investment securities. 
 
The Group has credit risk management policies in place and exposure to credit
risk is monitored on an ongoing basis.  Management generally adopts
conservative strategies and tight control on credit policy.  The Group has
limited the amount of credit exposure to customers. 
 
The average credit period on sales of services is 120 days. No interest is
charged on the trade receivables. 
 
(a)   Credit risks (continued) 
 
Before accepting any new customer, the Group will check the credit worthiness
of any new customers. 
 
The credit risk on cash and cash equivalent is limited because the
counterparties are banks with high credit ratings recognised by international
credit rating agencies. 
 
The maximum exposure to credit risk at the reporting date is the fair value of
trade receivables of £970,000 (2014: £1,318,000) and other receivables of
£187,000 (2014: £70,000).  The Group does not hold any collateral as
security. 
 
(b)   Liquidity risks 
 
The principal risk to the Group is liquidity, which arises from the Group's
management of working capital. It is a risk that the Group will encounter
difficulty in meeting its financial obligations as they fall due. This aspect
is kept under review by the directors and in this respect management carries
out rolling 12 month cash flow projections on a monthly basis as well as
information regarding cash balances. It is the Group's policy as regards
liquidity to ensure sufficient cash resources are maintained to meet
short-term liabilities. All long term financial liabilities at the year-end
are due in year 2017. 
 
(c)   Foreign currency exchange risks 
 
Foreign currency risk is the risk that the fair value or future cash flows of
an exposure will fluctuate because of the changes in foreign exchange rates.
The Group's exposure to the risk of 

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