Half-year Report
09/12/2019 12:06
RNS Number : 2275W Orient Telecoms PLC 09 December 2019 ORIENT TELECOMS PLC INTERIM FINANCIAL STATEMENTS For the six months ended 30 September 2019 Director's statements I have pleasure in presenting the interim financial statements of Orient Telecoms plc (the “Group”) for the period from 1 April 2019 to 30 September 2019. During the financial period, the Company reported a net loss of £32,990 (£0.003 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-2019 and so far we have achieved satisfactory results as forecasted. Thus far company has successfully signed more than 15 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 Seminars on disrupting technologies. These events helped the company to gain more attention of the target audiences from various business sectors. The objective for 2020 will not only be the higher revenues and profits, but also to increase the partnerships in region and look for regional business opportunities. This is to plot a path forward for the company to achieve its initial vision of becoming the regional virtual telco without investing into building the physical network infrastructure. The company shall continue to invest on its marketing and awareness initiative to ensure the forecasted results are achieved. On 25th October 2019, Mr. Mark Pincock resigned as company director. 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 interim financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and material related-party transactions in the first six months and any material changes in the related-party transactions described in the last annual report. Sayed Mustafa Ali 9 December 2019 CONDENSED CONSOLIDATED STATEMENT OF COMPREHESIVE INCOME FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2019
| 6 months period ended 30 September 2019 | 6 months period ended 30 September 2018 | |||
| Notes | £ | £ | ||
| (Unaudited) | (Unaudited) | |||
| INCOME | 4 | 266,445 | 39,867 | |
| COST OF SALES | (87,293) | - | ||
| GROSS PROFIT | 179,152 | 39,867 | ||
| Other operating expenses | (212,142) | (164,065) | ||
| OPERATING LOSS/LOSS BEFORE TAXATION | (32,990) | (124,198) | ||
| Income tax expense | - | - | ||
| LOSS FOR THE PERIOD ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY | (32,990) | (124,198) | ||
| OTHER COMPREHENSIVE INCOME | ||||
| Items that will or may be reclassified to profit or loss: | ||||
| Translation of foreign operation | 7,439 | - | ||
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | (25,551) | (124,198) | ||
| Basic and diluted loss per share (₤) | 5 | (0.003) | (0.012) |
| As at 30 September 2019 | As at 31 March 2019 | |||
| Notes | £ | £ | ||
| (Unaudited) | (Audited) | |||
| CURRENT ASSETS | ||||
| Bank | 6 | 397,474 | 529,278 | |
| Trade and other receivables | 7 | 94,296 | 230,011 | |
| 491,770 | 759,289 | |||
| CURRENT LIABILITIES | ||||
| Trade and other payables | 8 | 118,551 | 360,519 | |
| 118,551 | 360,519 | |||
| NET ASSETS | 373,219 | 398,770 | ||
| EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY | ||||
| Share capital | 9 | 1,000,000 | 1,000,000 | |
| Translation reserve | (4,282) | (11,721) | ||
| Accumulated losses | (622,499) | (589,509) | ||
| TOTAL EQUITY | 373,219 | 398,770 | ||
| 6 months period ended 30 September 2019 | 6 months period ended 30 September 2018 | ||
| Notes | £ | £ | |
| (Unaudited) | (Unaudited) | ||
| Cash flow from operating activities | |||
| Operating loss | (32,990) | (124,198) | |
| Changes in working capital | |||
| Trade receivables | (78,137) | (109,538) | |
| Other receivables | 213,852 | (500,000) | |
| Trade and other payables | (241,644) | 93,377 | |
| (105,929) | (516,161) | ||
| Net cash flow used in operating activities | (138,919) | (640,359) | |
| Net decrease in cash and cash equivalents | (138,919) | (640,359) | |
| Cash and cash equivalents at beginning of period | 529,278 | 751,387 | |
| Effect of exchange rate fluctuations on cash held | 7,115 | - | |
| Cash and cash equivalents at end of period | 397,474 | 111,028 |
| Share capital | Translation reserve | Accumulated losses | Total | ||||
| £ | £ | £ | £ | ||||
| As at 1 April 2019 | 1,000,000 | (11,721) | (589,509) | 398,770 | |||
| Loss for the period Translation of foreign operation | - - | - 7,439 | (32,990) - | (32,990) 7,439 | |||
| Total comprehensive loss for the period | - | 7,439 | (32,990) | (25,551) | |||
| As at 30 September 2019 | 1,000,000 | (4,282) | (622,499) | 373,219 |
| 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 | - | (124,198) | (124,198) | ||
| As at 30 September 2018 | 1,000,000 | (480,981) | 519,019 |
| Share capital | Translation reserve | Accumulated losses | Total | ||||
| £ | £ | £ | £ | ||||
| As at 1 April 2018 | 1,000,000 | - | (376,529) | 623,471 | |||
| Loss for the period Translation of foreign operation | - - | - (11,721) | (212,980) - | (212,980) (11,721) | |||
| Total comprehensive loss for the year | - | (11,721) | (212,980) | (224,701) | |||
| As at 31 March 2019 | 1,000,000 | (11,721) | (589,509) | (398,770) |
| 6 months period ended 30 September 2019 | 6 months period ended 30 September 2018 | |
| Loss for the period (£) | (32,990) | (124,198) |
| Weighted average number of shares (Unit) | 10,000,000 | 10,000,000 |
| Basic and diluted loss per share (£) | (0.003) | (0.012) |
| As at 30 September 2019 | As at 31 March 2019 | |
| £ | £ | |
| Great Britain Pound | 18,120 | 18,975 |
| Singapore Dollar | 19,514 | 19,514 |
| United States Dollar Malaysia Ringgit | 26,667 333,173 | 26,667 464,122 |
| 397,474 | 529,278 |
| As at 30 September 2019 | As at 31 March 2019 | ||
| £ | £ | ||
| Trade receivables | 94,296 | 16,159 | |
| Deposit | - | 938 | |
| Other receivables | - | 212,914 | |
| 94,296 | 230,011 |
| As at 30 September 2019 | As at 31 March 2019 | ||
| £ | £ | ||
| Amount due to related companies | 89,674 | 302,588 | |
| Accruals | 28,877 | 55,431 | |
| Other payables | - | 2,500 | |
| 118,551 | 360,519 |
| As at 30 September 2019 £ | As at 31 March 2019 £ | |
| Paid up: 10,000,000 ordinary shares at ₤0.10 each | 1,000,000 | 1,000,000 |
| As at 30 September 2019 | As at 31 March 2019 | |
| £ | £ | |
| Related Party | ||
| Orient Managed Services Limited | (44,391) | (44,391) |
| 6 months period ended 30 September 2019 | 6 months period ended 30 September 2018 | |
| £ | £ | |
| Transaction with Orient Telecoms Sdn Bhd | ||
| - Commission income | - | 39,867 |
| At 30 September 2019 | At 31 March 2019 | |
| Amount due from/(to) Orient Telecoms Sdn Bhd | ||
| - Amount due from related party | - | 212,914 |
| - Amount due to related party | (45,283) | (258,197) |
| (45,283) | (45,283) |