RNS Number : 9681K
Orient Telecoms PLC
19 December 2018
ORIENT TELECOMS PLC
INTERIM FINANCIAL STATEMENTS
For the six months ended 30 September 2018
Director's Statement
I have pleasure in presenting the interim financial statements of Orient Telecoms plc (the "Company") for the period from 1 April 2018 to 30 September 2018.
During the financial period, the Company reported a net loss of £124,198 (£0.012 loss per share).
Since the listing of the company, we have been extensively working on the marketing and sales related activities in the region.
The good news is that, we have started to seal the potential opportunities starting mid-2018 and so far we have achieved satisfactory results as forecasted. Thus far company has successfully signed more than 30 deals including some of the very high-profile customers in Malaysia.
We are continuously working to establish the Orient Telecoms brand and our business consultants are successfully able to create the awareness in the target market. As a part of not only creating brand awareness but also to attract more subject matter experts from the industry, the company had organised a number of Technology events such as TechTalk and Technology Seminars on disrupting technologies. These events helped the company to gain more attention of the target audiences from various business sectors.
The company shall continue to invest on its marketing and awareness initiative to ensure the forecasted results are achieved.
Responsibility Statement
The Directors are responsible for preparing the interim financial statements in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority ('DTR') and with International Accounting Standard 34 on Interim Financial Reporting (IAS 34) as adopted by European Union.
The Directors confirm that, to the best of their knowledge, the interim financial statements have been prepared in accordance with IAS 34 as adopted by the European Union. The interim financial statements include a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:
· an indication of important events that have occurred during the first six months and their impact on the interimfinancial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and
· material related-party transactions in the first six months and any material changes in the related-party transactions described in the last annual report.
Mark Pincock
Director
19 December 2018
CONDENSED STATEMENT OF COMPREHESIVE INCOME
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2018
6 months period ended 30 September 2018
6 months period ended 30 September 2017
Notes
£
£
(Unaudited)
(Unaudited)
INCOME
4
109,538
-
COST OF SALES
(69,671)
-
GROSS PROFIT
39,867
-
Other operating expenses
(164,065)
(62,141)
OPERATING LOSS/LOSS BEFORE TAXATION
(124,198)
(62,141)
Income tax expense
-
-
LOSS FOR THE PERIOD ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY
(124,198)
(62,141)
OTHER COMPREHENSIVE INCOME
Other comprehensive income
-
-
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
(124,198)
(62,141)
Basic and diluted loss per share (₤)
5
(0.012)
(0.124)
CONDENSED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2018
As at 30 September 2018
As at 31 March 2018
Notes
£
£
(Unaudited)
(Audited)
CURRENT ASSETS
Bank
6
111,028
751,837
Trade receivables
7
109,538
-
Other receivables
7
500,000
-
720,566
751,837
CURRENT LIABILITIES
Trade payables
8
69,671
-
Other payables
8
131,876
108,170
201,547
108,170
NET ASSETS
519,019
643,217
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY
Share capital
9
1,000,000
1,000,000
Accumulated losses
(480,981)
(356,783)
TOTAL EQUITY
519,019
643,217
CONDENSED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2018
6 months period ended 30 September 2018
6 months period ended 30 September 2017
Notes
£
£
(Unaudited)
(Unaudited)
Cash flow from operating activities
Operating loss
(124,198)
(62,141)
Changes in working capital
Trade receivables
(109,538)
-
Other receivables
(500,000)
-
Trade payables
69,671
-
Other payables
23,706
62,141
(516,161)
62,141
Net cash flow used in operating activities
(640,359)
-
Net decrease in cash and cash equivalents
(640,359)
-
Cash and cash equivalents at beginning of period
751,387
-
Cash and cash equivalents at end of period
111,028
-
NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED TO 30 SEPTEMBER 2018
Period from 1 April 2018 to 30 September 2018 (unaudited)
Share capital
Accumulated losses
Total
£
£
£
As at 1 April 2018
1,000,000
(356,783)
643,217
Loss for the period
-
(124,198)
(124,198)
Total comprehensive loss for the period
-
(480,981)
519,019
As at 30 September 2018
1,000,000
(480,981)
519,019
Period from 1 April 2017 to 30 September 2017 (unaudited)
Share capital
Accumulated losses
Total
£
£
£
As at 1 April 2017
12,500
(171,000)
(158,500)
Loss for the period
-
(62,141)
(62,141)
Total comprehensive loss for the period
-
(233,141)
(220,641)
Shares issued on incorporation
-
-
-
As at 30 September 2017
12,500
(214,000)
(220,641)
Period from 1 April 2017 to 31 March 2018 (audited)
Share capital
Accumulated losses
Total
£
£
£
As at 1 April 2017
12,500
(171,000)
(158,500)
Loss for the period
-
(185,783)
(185,783)
Total comprehensive loss for the period
12,500
(356,783)
(344,283)
Issued of new shares
987,500
-
987,500
As at 31 March 2018
1,000,000
(356,783)
643,217
1. GENERAL INFORMATION
The Company was incorporated in England and Wales on 26 February 2016, as a public company limited by shares under the Act. The principal legislation under which the Company operates is the Act. The registered office of the Company is at the offices of London Registrar, Suite A, 6 Honduras St, London EC1Y 0TH United Kingdom.
The Company was admitted to the Official List (by way of a Standard Listing) and to trading on the London Stock Exchange's main market for listed securities on 25 October, 2017.
2. ACCOUNTING POLICIES
Basis of preparation
The condensed financial information for the period ended 30 September 2018 and 30 September 2017 have been prepared in accordance with IAS 34, Interim Financial Reporting. The condensed financial information is unaudited and does not constitute statutory financial statements. The comparative interim financial information covers the period from 1 April 2017 to 30 September 2017.
The principal accounting policies used in preparing the interim financial statements are the same as those applied in the Company's financial statements as at and for the year ended 31 March 2018, which have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union ("IFRS") issued by the International Accounting Standards Board ("IASB"), including related interpretations issued by the International Financial Reporting Interpretations Committee ("IFRIC"). The auditors' report on those accounts was unqualified and unmodified.
The condensed financial information is presented in British Pound Sterling ("£").
The interim financial statements for the six months ended 30 September 2018 was approved by the Directors on 19 December 2018.
Going concern
These interim financial statements have been prepared on a going concern basis.
The Board's review of the accounts, budgets and financial plan leads the directors to believe that the Company has sufficient resources to continue operation for the foreseeable future. The financial accounts are therefore prepared on a going concern basis.
3. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of unaudited interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses for the current and its corresponding financial period under review. Actual results may differ from these estimates.
In preparing the unaudited interim financial statements, the significant judgements made by the management in applying the Company's accounting policies and the sources of estimates uncertainty were consistent as those applied to the 2018 Audited Financial Statements.
There were no changes in estimates of amounts of the Company that may have a material effect on financial period ended 30 September 2018.
4. REVENUE
Revenue represents the fair value of the consideration received or receivables for communication services.
Revenue is recognised when it is probable that the economic benefits associated with a transaction will flow to the Company and the amount of revenue and associated costs can be measured reliably and over the period to which the charges relate.
The Company receives payment for services from channel partner who onwardly sell to end users. The channel partner is treated as the principal in that transaction because the channel partner has the primary responsibility for providing the services to the end user; the channel partner is free to establish its own prices with or without bundling with other goods or services which are not supplied by the Company; and the channel partner bears the credit risk for the amount receivable from the end user. The Company therefore recognises revenue based on the transactions with the channel partner and not the end user.
All revenue derived from Malaysia. Revenue excludes value added tax and other sales taxes.
5. LOSS PER SHARE
Basic loss per ordinary share is calculated by dividing the loss attributable to equity holders of the company by the weighted average number of ordinary shares in issue during the period. Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. There are currently no dilutive potential ordinary shares.
Loss per share attributed to ordinary shareholders
6 months period ended 30 September 2018
6 months period ended 30 September 2017
Earnings (£)
(124,198)
(62,141)
Weighted average number of shares (Unit)
10,000,000
500,000
Per-share amount (£)
(0.012)
(0.124)
6. BANK
Cash and Cash equivalents are denominated in the following currencies:
As at 30 September 2018
As at 31 March 2018
£
£
Great Britain Pound
64,846
707,716
Singapore Dollar
26,667
18,375
United States Dollar
19,515
24,937
112,028
751,387
7. TRADE AND OTHER RECEIVABLES
As at 30 September 2018
As at 31 March 2018
£
£
Trade receivables
109,538
-
Other receivables
500,000
-
609,538
-
8. TRADE AND OTHER PAYABLES
As at 30 September 2018
As at 31 March 2018
£
£
Trade payable Amount due to holding company
69,671 44,391
- 44,391
Accruals
84,985
53,530
Other payables
2,500
10,249
201,547
108,170
9. SHARE CAPITAL
Ordinary shares of ₤1 each
As at 30 September 2018 £
As at 31 March 2018 £
Paid up: 10,000,000 ordinary shares at ₤0.10 each
1,000,000
1,000,000
On 29 September 2017, the existing 50,000 ordinary shares of £1.00 each was converted to 500,000 shares of £0.10 each. A further 500,000 new ordinary shares of £0.10 each were issued concurrently to the existing shareholder. These ordinary shares were fully paid through the conversion of the shareholder's loan owed by the Company, amounted to £87,500.
On 25 October 2017, the Company was admitted to the Official List (by way of a Standard Listing) and to trading on the London Stock Exchange's Main Market. On admission, 9,000,000 shares of £0.10 each were issued and fully paid. From listing total proceed of £900,000, the Company received net proceed of £769,860, after deduction of listing and broker cost.
At 31 March 2018 and 30 September 2018, the total issued ordinary share of the Company were 10,000,000.
10. SEASONAL OR CYCLICAL FACTORS
There are no seasonal factors that materially affect the Company's operation.
11. RELATED PARTY TRANSACTIONS
In 2017 the company entered into an agreement with a third party which provides consultancy service agreement in relation to the listing exercise of the Company.
As at 30 September 2018
As at 31 March 2018
£
£
Related Party
Orient Managed Services Limited
44,391
44,391
Orient Management Services Limited is jointly owned by Mark Pincock and Sayed Mustafa Ali, directors of the Company.
6 months period ended 30 September 2018
6 months period ended 30 September 2017
£
£
Orient Telecoms Sdn Bhd
- Income
109,538
-
- Cost of Sales
69,671
-
Sayed Mustafa Ali is a director of both, the Company and Orient Telecoms Sdn Bhd.
12. SUBSEQUENT EVENT
There were no subsequent events after the reporting period.
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