REG - Myanmar Investments - Audited results for the year to 31 March 2017 <Origin Href="QuoteRef">MILM.L</Origin> - Part 2
25/09/2017 07:07
- Part 2: For the preceding part double click ID:nRSY6366Ra
Note Share Share option Foreignexchangereserve Accumulatedlosses Equityattributableto owners ofthe parent Non-controllinginterests Total
capital reserve
US$ US$ US$ US$ US$ US$ US$
2016 (Continued)
Contributions by and distributions to owners
Issue of shares 16 19,942,397 - - - 19,942,397 - 19,942,397
Share issue expenses 16 (172,874) - - - (172,874) - (172,874)
Share options expense 17 - 153,448 - - 153,448 - 153,448
Total contributions by and distributions to owners 19,769,523 153,448 - - 19,922,971 - 19,922,971
At 31 March 2016 28,765,805 313,561 (81,132) (4,843,655) 24,154,579 10,398,648 34,553,227
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
Note 2017 2016
US$ US$
Operating activities
Loss before income tax (2,824,690) (2,216,645)
Adjustments for:
Interest income 4 (174) (181)
Finance costs 6 13,887 14,413
Depreciation of plant and equipment 12 12,941 14,996
Share-based payment expense 17 555,459 153,448
Share of results of joint venture, net of tax 10 (85,933) (16,485)
Gain on dilution of interest in joint venture 4 - (20,909)
Operating cash flows before working capital changes (2,328,510) (2,071,363)
Changes in working capital:
Other receivables (106,754) (2,896)
Other payables 501,317 66,226
Cash used in operations (1,933,947) (2,008,033)
Interest received 4 174 181
Finance costs paid 6 (13,887) (14,413)
Income tax paid (7,697) (10,747)
Net cash flows used in operating activities (1,955,357) (2,033,012)
Investing activities
Investment in available-for-sale financial assets 11 (10,000) (31,385,522)
Investment in joint venture 10 - (407,500)
Purchase of plant and equipment 12 (8,564) (7,631)
Net cash flows used in investing activities (18,564) (31,800,653)
Financing activities
Contribution from non-controlling interests to a subsidiary 13 - 10,400,933
Net proceeds from issuance of shares 16 3,891,189 19,769,523
Increase in short-term deposits pledged - (163)
Net cash flows generated from financing activities 3,891,189 30,170,293
Net change in cash and cash equivalents 1,917,268 (3,663,372)
Cash and cash equivalents at beginning of the year 1,349,915 5,013,287
Cash and cash equivalents at the end of financial year 15 3,267,183 1,349,915
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2017
1. General corporate information
Myanmar Investments International Limited (the "Company") is a limited
liability company incorporated and domiciled in the British Virgin Islands
("BVI"). The Company's registered office is at Jayla Place, Wickhams Cay I,
Road Town, Tortola, British Virgin Islands.
The Company's ordinary shares and warrants are traded on the AIM market of the
London Stock Exchange under the ticker symbols MIL and MILW respectively.
The Company has been established for the purpose of identifying and investing
in, and disposing of, businesses operating in or with business exposure to
Myanmar. The Company will target businesses operating in sectors that the
Directors believe have strong growth potential and thereby can be expected to
provide attractive yields, capital gains or both.
The principal activities of the subsidiaries are disclosed in Note 13 to the
financial statements.
The consolidated financial statements of the Company and its subsidiaries (the
"Group") for the financial year ended 31 March 2017 were approved by the Board
of Directors on 22 September 2017.
The Directors have adopted the going concern basis in preparing the
consolidated financial statements.
2. Summary of significant accounting policies
The Company's accounting policies are available in the full audited financial
statements, a copy of which can be found on the Company's website at
www.myanmarinvestments.com.
3. Significant accounting judgements and estimates
The Company's significant accounting judgements and estimates used in the
preparation of these financial statements are available in the full audited
financial statements, a copy of which can be found on the Company's website at
www.myanmarinvestments.com.
4. Other income
2017 2016
US$ US$
Interest income 174 181
Gain on dilution of interest in joint venture - 20,909
Other - 508
174 21,598
5. Employee benefits expense
2017 2016
US$ US$
Salaries, wages and other staff benefits 1,061,838 1,030,710
Bonuses 250,000 200,000
Share options expense 555,459 153,956
1,867,297 1,384,666
The employee benefits expense includes the remuneration of Directors as
disclosed in Note 19 to the financial statements.
6. Finance costs
Finance costs represent bank charges for the financial year.
7. Loss before income tax
In addition to the charges and credits disclosed elsewhere in the notes to the
consolidated financial statements, the above includes the following charges
and credits:
2017 2016
US$ US$
Auditor's remuneration 52,071 48,791
Consultants fees 377,240 264,591
Foreign exchange loss, net - 1,242
Operating lease expenses 74,273 83,460
Professional fees 59,098 16,076
Travel and accommodation 63,779 84,998
Transaction costs 30,447 9,098
8. Income tax
2017 2016
US$ US$
Current income tax
- current financial year 9,631 9,779
- (over)/under-provision in prior financial year (1,241) 9,230
8,390 19,009
A reconciliation of income tax applicable to loss before income tax at the
statutory income tax rate of 25% (2016: 25%) in Myanmar is as follows:
2017 2016
US$ US$
Loss before income tax (2,824,690) (2,216,645)
Share of results of joint venture, net of tax (85,933) (16,485)
(2,910,623) (2,233,130)
Income tax at the applicable tax rates (727,655) (558,283)
Effects of different income tax rates in other countries 732,756 571,480
Under-provision in prior financial year (1,241) 9,230
Tax effects of expenses not deductible for tax purposes 4,530 4,168
Others - (7,586)
Income tax for the financial year 8,390 19,009
9. Loss per share
Basic loss per share is calculated by dividing the loss for the financial year
attributable to owners of the parent by the weighted average number of
ordinary shares outstanding during the financial year.
The following reflects the loss and share data used in the basic and diluted
loss per share computation:
2017 2016
Loss for the financial year attributable to owners of the Company (US$) (2,828,540) (2,233,369)
Weighted average number of ordinary shares during the financial year applicable to basic loss per share 29,049,372 21,884,673
Loss per share
Basic and diluted (cents) (9.74) (10.21)
Diluted loss per share is the same as the basic loss per share because the
potential ordinary shares to be converted are anti-dilutive as the effect of
the shares conversion would be to decrease the loss per share.
10. Investment in joint venture
2017 2016
US$ US$
Investment in joint venture
At 1 April 1,813,957 1,450,195
Investments during the year - 407,500
Share of results of joint venture, net of tax 85,933 16,485
Foreign exchange adjustment (188,209) (81,132)
Gain on dilution of interest in joint venture - 20,909
At 31 March 1,711,681 1,813,957
On 26 August 2014 the Company's wholly-owned subsidiary, Myanmar Investments
Limited ("MIL"), signed a joint venture agreement ("JVA") with Myanmar Finance
Company Limited ("MFC") in which, the two parties agreed to establish a
Myanmar microfinance joint venture company, Myanmar Finance International Ltd.
("MFIL").
Under the terms of the JVA, MFC injected its existing microfinance business
into the joint venture which is jointly managed by MIL and MFC. The two
partners agreed to a four-phased contribution of US$4.8 million in capital
(MIL's share being US$2.84 million) with MIL owning 55 per cent of the new
company and MFC holding the remaining 45 per cent.
On 7 August 2015, MIL invested an additional US$266,667 in MFIL (which
included US$120,000 as premium paid, reflecting MFC's injected microfinance
business) and the Company's equity interest in MFIL remained at 55%.
On 16 November 2015, The Norwegian Investment Fund for Developing Countries
("Norfund") subscribed for new shares in MFIL for a total consideration of
US$1,430,720. Concurrent with Norfund's investment, the fourth and final
tranche of the initial capital specified under the JVA was called from MIL and
MFC and MIL invested an additional US$140,833 bringing its total capital
contribution to date of US$1,920,000. Following Norfund's investment and the
final capital contributions by MIL and MFC, MIL's and MFC's shareholdings in
MFIL were each reduced to 37.5%, while Norfund now has a 25% shareholding in
MFIL. Arising from the dilution of equity interest in MFIL, a gain of
US$20,909 was recognised to the consolidated statement of comprehensive
income.
MFIL is a well-established provider of microfinance loans to small-scale
business operators in rural and urban areas of Yangon and neighbouring Bago.
MFIL is deemed to be a joint venture of the Company as the appointment of its
directors and the allocation of voting rights for key business decisions
require the unanimous approval of all its shareholders.
The detail of the joint venture is as follows:
Name of joint venture(Country of incorporation/place of business) Principalactivities Effective equity interestheld by the Company
2017 2016
% %
Myanmar Finance International Limited(1)(Myanmar) Provider ofmicrofinance loans 37.5 37.5
(1)Audited by JF Group Audit Firm, Yangon, Myanmar.
The summarised financial information below reflects the amounts presented in
the financial statements of the joint venture (and not the Company's share of
those amounts), adjusted for differences in accounting policies between the
Company and the joint venture.
2017 2016
US$ US$
Assets and liabilities
Cash and cash equivalents 504,649 1,259,004
Trade receivables 5,898,757 4,037,562
Other current assets 192,680 93,403
Current assets 6,596,086 5,389,969
Non-current assets 119,763 150,182
Total assets 6,715,849 5,540,151
Current liabilities 1,998,898 1,022,933
Non-current liabilities 472,468 -
Total liabilities 2,471,366 1,022,933
Net assets 4,244,483 4,517,218
Investment in joint venture 37.5% 37.5%
Share of net assets 1,591,681 1,693,957
Premium paid 120,000 120,000
1,711,681 1,813,957
2017 2016
US$ US$
Included in the current liabilities are:
Current financial liabilities 1,677,700 828,327
(excluding trade and other payables and provision)
Non-current financial liabilities (excluding trade and other payables and provision) 472,468 -
Year ended 31 March2017 Period from9 July 2015 (Date of incorporation)to 31 March2016
US$ US$
Income and expenses
Revenue 1,557,162 819,948
Other income 77,692 142,255
Operating expense (1,063,140) (786,888)
Depreciation (54,429) (34,406)
Interest expense (198,359) (75,415)
Tax expense (89,770) (16,373)
Profit after income tax 229,156 49,121
11. Available-for-sale financial assets
2017 2016
US$ US$
Available-for-sale financial assets
Unquoted equity, at cost 31,395,522 31,385,522
As disclosed in Note 13 to the financial statements, MIL 4 Limited ("MIL 4")
was incorporated by the Company to acquire shares in Apollo Towers Pte. Ltd.
("Apollo"), a Singapore incorporated company.
On 29 July 2015, MIL 4 acquired a 14.18% stake in Apollo Towers Pte. Ltd.
("Apollo"), an unquoted Singapore incorporated company, for a purchase
consideration of US$30,182,725.
On 24 December 2015, Apollo held a further round of fund raising in which MIL
4 only invested US$1,202,797 into Apollo, resulting in a dilution of MIL 4's
equity interest to 13.48%.
On 16 June 2016, MIL4 purchased a warrant for a total consideration of
US$10,000, allowing MIL4 to purchase for a nominal amount 1.56% of Apollo's
total capital stock on a fully diluted basis. The warrant has not been
exercised by MIL4 as of 31 March 2017.
Apollo owns and operates a leading telecommunication towers business in
Myanmar through its subsidiary Apollo Towers Myanmar Limited.
The investment in unquoted equity securities is stated at cost, including
transaction costs, less impairment loss, if any. The investment is denominated
in United States Dollars.
12. Plant and equipment
Computer equipment Office equipment Furniture and fittings Total
US$ US$ US$ US$
2017
Cost
Balance at 1 April 2016 13,739 4,580 30,155 48,474
Additions 3,671 315 4,578 8,564
Balance at 31 March 2017 17,410 4,895 34,733 57,038
Accumulated depreciation
Balance at 1 April 2016 7,649 1,599 22,339 31,587
Depreciation for the financial year 4,104 1,413 7,424 12,941
Balance at 31 March 2017 11,753 3,012 29,763 44,528
Carrying amount
Balance at 31 March 2017 5,657 1,883 4,970 12,510
2016
Cost
Balance at 1 April 2015 10,749 2,297 27,797 40,843
Additions 2,990 2,283 2,358 7,631
Balance at 31 March 2016 13,739 4,580 30,155 48,474
Accumulated depreciation
Balance at 1 April 2015 3,604 752 12,235 16,591
Depreciation for the financial year 4,045 847 10,104 14,996
Balance at 31 March 2016 7,649 1,599 22,339 31,587
Carrying amount
Balance at 31 March 2016 6,090 2,981 7,816 16,887
13. Investment in subsidiaries
Details of the investments in which the Group has a controlling interest are
as follows:
Name of subsidiaries Country of incorporation/principal place of business Principal activities Proportion of Proportion of
ownership interest held by the Group ownership interest held by non-control interests
2017 2016 2017 2016
% % % %
Myanmar Investments Limited (1) Singapore Investment holding company 100 100 - -
MIL Management Pte. Ltd.(1) Singapore Provision of management services to the Group 100 100 - -
MIL No. 2 Pte. Ltd.(2) Singapore Dormant 100 100 - -
MIL No. 3 Pte. Ltd.(2) Singapore Dormant 100 100 - -
MIL 4 Limited (1) British Virgin Islands Investment holding company 66.67 66.67 33.33 33.33
Held by MIL Management Pte. Ltd.
MIL Management Co., Ltd(3) Myanmar Provision of management services to the Group 100 100 - -
(1) Audited by BDO LLP, Singapore.
(2) Not required to be audited as the subsidiary is dormant since the date of
its incorporation.
(3) Audited by JF Group Audit Firm, Yangon, Myanmar.
Incorporation of a subsidiary
On 9 July 2015, the Company incorporated a 100.00% owned subsidiary, MIL 4 for
a cash consideration of US$5,000, in the British Virgin Islands for the
purpose of investing into Apollo as disclosed in Note 11 to the financial
statements.
On 29 July 2015, the Company and new shareholders injected an amount of
US$19,995,000 and US$10,000,000 into MIL 4 respectively, which resulted in the
dilution of equity interest in the subsidiary to 66.67%.
On 24 December 2015, the Company and MIL 4's shareholders further increased
its investment in MIL 4 by US$801,864 and US$400,933 respectively and the
Company's equity interest in MIL 4 remains at 66.67% during this round of
additional investment.
Non-controlling interests
The summarised financial information before intra-group elimination of the
subsidiary that has material non-controlling interests as at the end of each
reporting period is as follows:
MIL 4 Limited
2017 2016
US$ US$
Assets and liabilities
Non-current assets 31,395,522 31,385,522
Current assets 89,778 32,289
Current liabilities (302,977) (221,869)
Net assets 31,182,323 31,195,942
Accumulated non-controlling interests 10,394,108 10,398,648
Year to 31 March2017 Period from9 July 2015 (Date of incorporation)to 31 March2016
US$ US$
Revenue - -
Administrative expenses (13,620) (6,855)
Loss for the financial year/period, representing total comprehensive income for the financial year/period (13,620) (6,855)
Loss allocated to non-controlling interests, representing total comprehensive income allocated to non-controlling interests (4,540) (2,285)
Net cash used in operating activities (96,567) (1,838)
Net cash used in investing activity (10,000) (31,385,522)
Net cash generated from financing activities 106,567 31,387,360
Net change in cash and cash equivalents - -
14. Other receivables
2017 2016
US$ US$
Other receivables 136,974 29,591
Deposits 12,502 14,605
Prepayments 49,028 47,554
198,504 91,750
Other receivables are denominated in the following currencies:
2017 2016
US$ US$
United States dollar 192,254 88,732
Singapore dollar - 2,105
Myanmar kyat 6,250 913
198,504 91,750
15. Cash and cash equivalents
2017 2016
US$ US$
Cash and bank balances 3,267,183 1,349,915
Short-term deposit 36,144 36,144
3,303,327 1,386,059
The short-term deposit bears interest at an average rate of 0.25% (2016:
0.25%) per annum and is for a tenure of approximately 12 months (2016: 12
months).
The short-term deposit of the Company amounting to US$36,144 (2016: US$36,144)
is pledged to bank to secure credit facilities.
Cash and cash equivalents are denominated in the following currencies:
2017 2016
US$ US$
United States dollar 3,164,896 1,233,692
Singapore dollar 134,075 146,834
Myanmar kyat 4,356 5,533
3,303,327 1,386,059
For the purpose of the statement of cash flows, cash and cash equivalents
comprise the following at the end of the financial year:
2017 2016
US$ US$
Bank balances 3,303,327 1,386,059
Less: short-term deposits pledged (36,144) (36,144)
3,267,183 1,349,915
16. Share capital
2017 2016
US$ US$
Issued and fully-paid share capital:
Ordinary shares at the beginning of the financial year 28,765,805 8,996,282
Issuance of ordinary shares during the financial year 4,219,081 19,942,397
Exercise of warrants during the financial year 7,885 -
Share issuance expenses (335,777) (172,874)
32,656,994 28,765,805
2017 2016
Equity Instruments in issue Ordinary Shares Warrants Ordinary Shares Warrants
At the beginning of the 27,300,833 15,240,027 9,959,619 9,459,619
financial year
Issuance during the 3,245,447 811,368 17,341,214 5,780,408
financial year
Exercise of warrants during the financial year 10,513 (10,513) - -
At the end of the financial year 30,556,793 16,040,882 27,300,833 15,240,027
The holders of ordinary shares are entitled to receive dividends as declared
from time to time and are entitled to one vote per share without restriction
at meetings of the Company.
On 21 July 2015, the Company allotted 17,341,214 Ordinary Shares at US$1.15
per share (total of US$19,942,397) pursuant to a subscription for new shares
(the "Third Subscription").
On 16 September 2016, the Company allotted 3,245,447 Ordinary Shares at
US$1.30 per share (total of US$4,219,081) pursuant to a subscription for new
shares (the "Fourth Subscription").
During the financial year, a total of 10,513 warrants were exercised at a
price of US$0.75 by the parties that held them for cash consideration of
US$7,885.
All the shares have been admitted to trading on AIM under the ticker MIL.
The new ordinary shares issued during the financial year ranked pari passu in
all respects with the existing ordinary shares of the Company.
Warrants
On 21 July 2015, the Company allotted 5,780,408 Warrants pursuant to the Third
Subscription. The Company had agreed that for every three Ordinary Shares
subscribed for by a subscriber they would receive one Warrant at nil cost.
On 16 September 2016, the Company allotted 811,368 Warrants pursuant to the
Fourth Subscription. The Company had agreed that for every four Ordinary
Shares subscribed for by a subscriber they would receive one Warrant at nil
cost.
The Warrants entitle the holder to subscribe for an Ordinary share at an
exercise price of US$0.75. The Warrants may be exercised during each 15
Business Day period commencing on the first day of each Quarter during the
Subscription Period (from 21 June 2015 to 21 June 2018).
All Warrants have been admitted to trading on AIM under the ticker MILW.
17. Share option reserve
Details of the Share Option Plan (the "Plan")
The Plan allows for the total number of shares issuable under share options to
constitute a maximum of one tenth of the number of the total number of
ordinary shares in issue (excluding shares held by the Company as treasury
shares and shares issued to the Founders prior to Admission).
Any future issuance of shares will give rise to the ability of the
Remuneration Committee to award additional share options. Such share options
will be granted with an exercise price set at a 10 percent premium to the
subscription price paid by shareholders on the relevant issue of shares that
gave rise to the availability of each tranche of share options.
Share options can be exercised any time after the first anniversary and before
the tenth anniversary of the grant (as may be determined by the Remuneration
Committee in its absolute discretion) of the respective share options.
Share options are not admitted to trading on AIM but application will be made
for shares that are issued upon the exercise of the share options to be
admitted to trading on AIM.
As at 31 March 2017, there were 3,004,628 (2016: 2,680,082) share options
available for issue under the Plan of which 2,673,028 (2016: 1,894,661) had
been granted. These granted share options have a weighted average exercise
price of US$1.214 (2016: US$1.194) per share and a weighted average
contractual life of 8.51 years (2016: 9.11 years).
The 3,004,628 share options available were created under the following
series:
Series/Date Occasion Number Exerciseprice(USD)
Series 1 Admission Placing and Subscription 584,261 1.100
Series 2 Second Subscription 361,700 1.155
Series 3 Third Subscription 1,734,121 1.265
Series 4 Fourth Subscription 324,546 1.430
3,004,628
The following share-based payment arrangements were in existence during the
current financial year:
Option series Number of share options Grant date Expiry date Exerciseprice(USD) Fair valueat grantdate
Series 1 410,000 27 June 2013 26 June 2023 1.100 153,495
Series 1 25,000 9 December 2013 8 December 2023 1.100 19,015
Series 1 132,261 25 September 2014 24 September 2024 1.100 62,937
Series 2 24,000 2 June 2015 1 June 2025 1.155 14,671
Series 1 10,200 15 January 2016 14 January 2026 1.100 6,235
Series 2 331,700 15 January 2016 14 January 2026 1.155 193,562
Series 3 956,600 15 January 2016 14 January 2026 1.265 508,734
Series 3 195,000 28 June 2016 27 June 2026 1.265 136,351
Series 1 6,800 19 October 2016 18 October 2026 1.100 4,088
Series 2 6,000 19 October 2016 18 October 2026 1.155 3,447
Series 3 575,467 19 October 2016 18 October 2026 1.265 302,071
2,673,028 1,404,606
Share options that are allocated to a Participant are subject to a three year
vesting period during which the rights to the share options will be
transferred to the Participant in three equal annual instalments provided,
save in certain circumstances, that they are still in employment with or
engaged by the Company.
Fair value of share options granted in the financial year
The weighted average fair value of the share options granted during the
financial year is US$0.569 (2016: US$0.547). Share options were priced using
Black-Scholes option pricing model. Where relevant, the expected life used in
the model has been adjusted based on management's best estimate for the
effects of non-transferability, exercise restrictions (including the
probability of meeting market conditions attached to the option), and
behavioural considerations. Expected volatility is based on historical share
price volatility from the date of grant of the share options.
The Black-Scholes option pricing model uses the following assumptions:
Grant date
28 June 2016 19 October 2016 19 October 2016 19 October 2016
Grant date share price (US$) 1.628 1.388 1.388 1.388
Exercise price (US$) 1.265 1.100 1.155 1.265
Expected volatility 22.47% 22.25% 22.25% 22.25%
Option life 10 years 10 years 10 years 10 years
Risk-free annual interest rates 1.46% 1.76% 1.76% 1.76%
The Group recognised a net expense of US$555,459 (2016: US$153,448) related to
equity-settled share-based payment transactions during the financial year.
Movement in share option during the financial year
The following reconciles the share options outstanding at the start of the
year and at the end of the year.
2017 2016
Number Weighted average exerciseprice Number Weighted average exerciseprice
US$ US$
Balance at start of the 1,894,661 1.194 574,061 1.100
financial year
Granted 783,267 1.263 1,324,000 1.234
Forfeited (4,900) 1.117 (3,400) 1.100
Balance at end of financial year 2,673,028 1.214 1,894,661 1.194
No share options were exercised during the financial year.
Movement in share option reserve during the financial year
2017 2016
US$ US$
Balance at start of the financial year 313,561 160,113
Share options expense 555,459 153,448
Cancellation of share options (2,630) -
Balance at end of financial year 866,390 313,561
18. Other payables
2017 2016
US$ US$
Accruals 596,032 130,237
Other payables 36,706 1,184
632,738 131,421
Other payables are denominated in the following currencies:
2017 2016
US$ US$
Singapore dollar 47,179 50,613
United States dollar 523,791 57,348
British pound 50,976 20,678
Euro 2,667 2,782
Myanmar Kyat 8,125 -
632,738 131,421
19. Significant related party disclosures
For the purposes of these consolidated financial statements, parties are
considered to be related to the Group and the Company if the Group and the
Company have the ability, directly or indirectly, to control the party or
exercise significant influence over the party in making financial and
operating decisions, or vice versa, or where the Group and the Company and the
party are subject to common control or common significant influence. Related
parties may be individuals or other entities.
Compensation of key management personnel
For the financial year ended 31 March 2017, no emoluments were paid by the
Group to the Directors as an inducement to join or upon joining the Group or
as compensation for loss of office.
The remuneration of Directors for the financial years ended 31 March 2017 and
31 March 2016 was as follows:
Directors'fee Short termemployeebenefits(1) Shareoptionplan Total
US$ US$ US$ US$
Financial year ended 31 March 2017
Executive directors
Maung Aung Htun - 456,747 179,327 636,074
Anthony Michael Dean - 434,784 165,913 600,697
Independent non-executive directors
Christopher William Knight 40,000 - 34,352 74,352
Craig Robert Martin 30,000 - 34,453 64,453
Christopher David Appleton 30,000 - 34,554 64,554
Henrik Onne Bodenstab 26,200 - 5,051 31,251
126,200 891,531 453,650 1,471,381
Financial year ended 31 March 2016
Executive directors
Maung Aung Htun - 447,208 (2) 58,193 505,401
Anthony Michael Dean - 429,909 (2) 52,119 482,028
Independent non-executive directors
Christopher William Knight 35,000 - 7,896 42,896
Craig Robert Martin 27,500 - 8,461 35,961
Christopher David Appleton 27,500 - 9,027 36,527
90,000 877,117 135,696 1,102,813
(1) The short-term employee benefits also includes rental expenses paid for
the Director's accommodation.
(2) The short-term employee benefits include bonuses totalling US$150,000
for the Executive Directors that relate to the financial year ended 31 March
2015 as determined by the Remuneration Committee.
20. Commitments
Operating lease commitments - as lessee
The Group leases the Yangon office and accommodation for Directors under
non-cancellable operating leases. The operating lease commitments are based on
rental rates as specified in the lease agreements. The Group has the option to
renew certain agreements on the leased premises for another one year.
In accordance with prevailing market conditions in Yangon, lease payments are
paid in advance.
Future minimum rentals payable under non-cancellable operating leases at the
reporting date are as follows:
2017 2016
US$ US$
Within one financial year - 39,000
- 39,000
21. Dividends
The Directors of the Company do not recommend any dividend in respect of the
financial year ended 31 March 2017 (2016: Nil).
22. Financial risk management objectives and policies
The Company's financial risk management objective and policies are available
in the audited financial statements, a copy of which can be found on the
Company's website at www.myanmarinvestments.com
23. Subsequent events
Equity fund raising
On 27 June 2017, the Company raised US$7,293,725 through the issuance of
6,181,123 new ordinary shares.
Notes to Editors:
Myanmar Investments International Limited (AIM: MIL) is the first
Myanmar-focused investment company to be admitted to trading on the AIM market
of the London Stock Exchange. MIL was established in 2013 with the intention
of building long term shareholder value by proactively investing in a
diversified range of Myanmar businesses that will benefit from the country's
re-emergence and ongoing economic development. The Company is led by an
experienced and entrepreneurial team who between them have considerable
industrial, corporate and financial management experience.
To date the Company has raised over US$40 million, predominantly from
institutional investors, family offices and high net worth individuals.
MIL aims to identify businesses with strong growth which if necessary can be
"de-risked" through the introduction of experienced senior line-management,
mentors and/or strategic partners sourced by MIL's management board. The
Company's main focus is on opportunities that are experiencing acute supply
and demand imbalances, such as within the consumer and capacity-constrained
sectors.
With its strong proprietary pipeline of business opportunities, MIL provides
investors with a highly disciplined and conservative investment process into
one of the most promising growth opportunities of this era.
MIL's largest investment (US$21 million for a 9.3% shareholding) is in Apollo
Towers, one of Myanmar's top telecommunications towers companies with 1,800
towers. Apollo operates in the high growth telecommunications sector with a
strong management that is growing the number of co-locations (ie multiple
tenancies) on its portfolio of towers. In June 2016, the US Government's
Overseas Private Investment Corporation ("OPIC") provided a US$250 million
debt facility to Apollo Towers.
MIL's first investment in August 2014 was into Myanmar Finance International
Limited ("MFIL") which today is one of the top 10 microfinance companies in
Myanmar. Since MIL invested, MFIL's business has developed rapidly. The
business is profitable with zero NPLs and a sustainable expansion plan for
long term growth. In November 2015, the Norwegian Government's Norwegian
Investment Fund for Developing Countries ("Norfund"), the Norwegian
development finance institution, also became a 25% shareholder in MFIL.
In May 2017 MIL announced it had established a pharmacy, healthcare and
personal care product franchise joint venture. It is expected that the
business will fill a vacuum in the present retail landscape and at the same
time tap into the rapid growth of the middle and affluent classes in Myanmar.
The two joint venture partners are: a) an experienced retail group that runs
over 55 pharmacy, health and beauty outlets in a neighbouring Asian country;
and b) an industry veteran with significant experience leading Asian-based
retail concepts. The Company has made an initial investment of US$495,000 for
a 45% stake. The Company expects to invest further capital in the business
over the next few years as it continues to expand.
Myanmar, a country of approximately 51.4 million people and roughly the size
of France, has been isolated for much of the last 50 years. Once it was one of
the more prosperous countries in Southeast Asia as it has an abundance of
natural resources (oil, natural gas, arable land, tourist attractions and a
long coastline), it is now one of the least developed countries in the world.
The country has undergone an unprecedented and peaceful transformational
reform process, initiated by U Thein Sein's Administration in 2011. This is
now continuing under the elected civilian administration led by Daw Aung San
Suu Kyi which came to power in April 2016 as a result of the first democratic
elections in 50 years. While the process is still evolving, the new government
has broad support and significant progress has been made to the economic
prospects of the country.
In October 2016, the United States lifted all remaining sanctions against
Myanmar and re-admitted the country into its preferred tariff system.
For more information about MIL, please visit
http://www.myanmarinvestments.com
This information is provided by RNS
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