REG - Orient Telecoms PLC - Half-year Report as of 30 September 2024
12/12/2024 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241212:nRSL8076Pa&default-theme=true
RNS Number : 8076P Orient Telecoms PLC 12 December 2024
ORIENT TELECOMS PLC
("ORIENT" or the "Company")
HALF YEAR REPORT ENDED 30 SEPTEMBER 2024
ORIENT is an information technology company that offers managed services as
its core business, which include managed services in machine-to-machine
networking, solutions for internet of things (IOT), cyber security, big data
solutions as well as full spectrum of other managed services, announces its
half year report ended 30 September 2024
The interim report and accounts is available on the Company's website
at: www.orient-telecoms.com (http://www.orient-telecoms.com/)
For more information please contact:
Orient Telecoms plc
mustafa@orient-telecoms.com
Sayed Mustafa Ali
I am pleased to present the interim financial statements for Orient Telecoms
Plc for the six-month period ending September 30, 2024. In this period, the
Group reported a net loss of £68,309, translating to earnings per share of
(0.68) pence. The directors have also assessed the principal risks and
uncertainties and have disclosed this in this report.
The condensed interim report has not been audited.
Financial Performance and Strategic Path to Profitability
The net loss reported for this period primarily stems from the expiration of
several high-value contracts, leading to a temporary dip in revenue. While
these transitions have posed short-term challenges, the management team has
been diligently pursuing new opportunities to address the impact and rebuild
revenue streams.
Efforts are well underway to secure significant new contracts that will offset
the revenue loss and provide a stable foundation for future growth.
Additionally, Orient Telecoms is actively engaging with key domestic
institutions to explore potential collaborations, many of which are expected
to materialize in the next 3-6 months. These initiatives are strategically
aligned to not only stabilize revenues but also support long-term growth and
profitability.
Through these proactive measures and a commitment to operational excellence,
Orient Telecoms remains confident in its ability to navigate current
challenges while positioning itself for sustained success in the future.
Strengthening Regional Managed Services and Strategic Engagements
Over the past six months, Orient Telecoms has continued to establish itself as
a leader in managed service solutions across Southeast Asia. Our operational
model prioritizes agility and customer-centered service, enabling enterprises
to leverage top-tier connectivity solutions without the significant capital
expenditure of managing network infrastructure. To further this vision, we are
actively engaging some of the largest telcos worldwide to extend our managed
service offerings across the region. These strategic partnerships position us
to deliver robust, high-performance services in collaboration with industry
leaders.
We have also made concerted efforts to connect with large institutions within
Malaysia, particularly in the education sector. Management is actively
pursuing opportunities to bring our state-of-the-art solutions to these
institutions, where we can support their digital transformation goals with
seamless, advanced network services.
Innovating with AI and Advanced Service Management
Orient Telecoms is also advancing its technology strategy, with significant
progress in AI applications to enhance our managed services portfolio. Our
technology team has made strides in building a custom operating system that
improves operational efficiency and service management. This strong foundation
is enabling us to explore additional AI applications, with active discussions
underway to secure partnerships that will amplify our AI-driven capabilities.
Strengthened Marketing and Sales Efforts
Our marketing and sales teams have bolstered their efforts through strategic
digital marketing initiatives and an expanded sales force to strengthen our
market presence and attract more regional clients. This proactive approach is
already supporting our growth objectives and enhancing brand visibility in
competitive markets.
Increasing Visibility in the B2B Market
Orient Telecoms is committed to expanding our footprint in the B2B market. To
achieve this, our marketing team is actively implementing a comprehensive
outreach strategy aimed at connecting with potential clients across various
platforms. We are leveraging targeted social media campaigns, which allow us
to engage with businesses more directly and create awareness of our unique
managed service solutions.
In addition to digital efforts, we're also strengthening our presence through
participation in industry seminars and key regional technology events. These
initiatives not only enhance our brand visibility but also provide valuable
opportunities to network with industry leaders and demonstrate our expertise
in connectivity solutions. Through this multifaceted approach, Orient Telecoms
is focused on building lasting relationships and capturing new opportunities
within the B2B market.
Commitment to Operational Excellence
Orient Telecoms is dedicated to delivering outstanding service quality that
exceeds customer expectations. Our support framework ensures reliable,
responsive service, allowing our clients to operate confidently with the
assurance of swift and dependable assistance.
Positive Outlook
With a clear strategy, a focused effort on key sectors, and our commitment to
ongoing innovation, Orient Telecoms is well-positioned for growth. We
anticipate a strong financial performance by the close of our fiscal year in
March 2025, as we continue to meet the evolving needs of our customers and
expand our impact.
Responsibility Statement
The Board of Directors of Orient Telecoms Plc assumes full responsibility for
the accurate preparation of the interim financial statements. These statements
are crafted in adherence to the standards set by the United Kingdom's
Financial Conduct Authority (DTR) and in accordance with International
Accounting Standard 34 on Interim Financial Reporting (IAS 34).
We affirm that, to the best of our knowledge and expertise, these interim
financial statements have been carefully prepared with due diligence in full
compliance with IAS 34. They provide a comprehensive and objective overview of
all relevant information required by DTR 4.2.7 and DTR 4.2.8, including a
clear outline of key events during the first half of the fiscal year and their
impacts on these interim financial statements.
Additionally, this document offers an in-depth view of the main risks and
uncertainties anticipated for the remainder of the fiscal period. It includes
a thorough analysis of significant related-party transactions during the first
six months, along with any notable changes relative to the related-party
transactions disclosed in the previous annual report.
Sayed Mustafa Ali
Director
CONDENSED CONSOLIDATED STATEMENT OF COMPREHESIVE INCOME
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024
6 months 6 months
period ended period ended
30-Sep-24 30-Sep-23
Notes £ £
(Unaudited) (Unaudited)
INCOME 4 118,137 212,120
DIRECT COST (29,409) (20,940)
GROSS PROFIT 88,728 191,180
Administrative expense (156,151) (173,255)
OPERATING (LOSS)/PROFIT (67,422) 17,925
Other income - 1,713
Finance income 877 1,351
Finance cost (1,764) (6,119)
OPERATING (LOSS)/PROFIT BEFORE TAXATION (68,309) 14,870
Income tax expense - -
(LOSS)/PROFIT FOR THE PERIOD
ATTRIBUTABLE TO EQUITY HOLDERS (68,309) 14,870
OTHER COMPREHENSIVE INCOME
Items that will or may be reflected to profit or loss:
Translation of foreign operation - -
TOTAL COMPREHENSIVE (LOSS)/PROFIT FOR THE PERIOD (68,309) 14,870
5 (0.69) 0.14
Basic and diluted profit per share (pence)
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2024
As at As at As at
30-Sep-24 31-Mar-24 30-Sep-23
£ £ £
Notes (Unaudited) (Audited) (Unaudited)
ASSETS
NON-CURRENT ASSETS
Computer equipment 6 2,587 - -
Right-of-use assets 7 44,464 50,127 142,193
47,051 50,127 142,193
CURRENT ASSETS
Bank 8 277,426 336,380 263,148
Trade and other receivables 9 344,481 308,167 360,411
621,906 644,547 623,559
CURRENT LIABILITIES
Trade and other payables 10 128,632 103,538 68,377
Lease liability 11 9,472 17,176 47,865
138,105 120,715 116,242
NET ASSETS 530,853 573,960 649,510
EQUITY ATTRIBUTABLE TO EQUITY
HOLDERS OF THE COMPANY
Share Capital 12 1,000,000 1,000,000 1,000,000
Translation reserve (16,921) (39,339) (20,011)
Accumulated loss (488,092) (419,783) (431,339)
494,987 540,879 548,650
NON-CURRENT LIABILITIES
Lease liability 11 35,865 33,082 100,860
35,865 33,082 100,860
TOTAL EQUITY AND NON-CURRENT LIABILITIES 530,853 573,960 649,510
The unaudited condensed interim financial statements were approved by the
Board of Directors and authorized for issue on 12 December 2024 and were
signed on its behalf by:
Sayed Mustafa Ali
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024
Period from 1 April 2024 to 30 September 2024 (Unaudited)
Share capital Translation reserve Accumulated losses Total
£ £ £ £
As at 1 April 2024 1,000,000 (39,339) (419,783) 540,879
Profit/(Loss) for the period - - (68,309) (68,309)
Translation of foreign operation - 22,418 - 22,418
Total comprehensive income for the period - 22,418 (68,309) (45,891)
As at 30 September 2024 1,000,000 (16,921) (488,092) 494,987
Period from 1 April 2023 to 30 September 2023 (Unaudited)
Share capital Translation reserve Accumulated losses Total
£ £ £ £
As at 1 April 2023 1,000,000 (13,132) (446,209) 540,659
Profit/(Loss) for the period - - 14,870 14,870
Translation of foreign operation - (6,879) - (6,879)
Total comprehensive income for the period - (6,879) 14,870 7,991
As at 30 September 2023 1,000,000 (20,011) (431,339) 548,650
Period from 1 April 2023 to 31 March 2024 (Audited)
Share Capital Translation reserve Accumulated losses Total
£ £ £ £
As at 1 April 2023 1,000,000 (13.132) (446,209) 540,658
Profit/(Loss) for the period - - 26,426 26,426
Translation of foreign operation - (26,206) - (26,206)
Total comprehensive income for the period - (26,206) 26,426 220
As at 30 September 2024 1,000,000 (39,339) (419,783) 540,879
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024
6 months 6 months
period ended period ended
30-Sep-24 30-Sep-23
£ £
(Unaudited) (Unaudited)
Cash flow from operating activities
(Loss)/Profit after tax (68,309) 14,870
Adjustment for:
Translation of foreign operation 22,418 (6,880)
Depreciation 9,929 56,569
Finance income (877) (1,351)
Interest on lease liabilities 1,764 6,119
(35,076) 69,327
Change in working capital
(Increase)/Decrease in trade and other receivables (36,313) (84,799)
Increase/(Decrease) in trade and other payables 25,094 9,259
Cash flow from operating activities (46,295) (6,213)
Cash flow from investing activities
Purchase of fixed asset (2,634) -
Interest received 877 1,351
Net cash used in investing activities (1,757) 1,351
Net cash flow generated from/(used in) financing
activities
Interest paid (1,764) (6,119)
Repayment on lease liability (4,920) (55,663)
Exchange difference (4,218) -
Net cash flow used in financing activities (10,903) (61,782)
Net movement in cash and cash equivalents (58,954) (66,644)
Cash and cash equivalents at beginning of the period 336,380 329,792
Exchange gain on cash and cash equivalents - -
Cash and cash equivalents at end of the period 277,426 263,148
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2024
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 Eastcastle House, 27/28 Eastcastle Street, London W1W 8DH United
Kingdom.
Shares of the Company are traded on London Stock Exchange's main market for
listed securities since 2017.
2. ACCOUNTING POLICIES
Basis of preparation
The consolidated financial information for the period ended 30 September 2024
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 interim financial information covers the six-month
period from 1 April 2024 to 30 September 2024, with comparative figures for
the corresponding period from 1 April 2023 to 30 September 2023.
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 2024, which have been prepared in
accordance with International Financial Reporting Standards as adopted by the
UK ("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
("£").
Going concern
These interim financial statements have been prepared on a going concern
basis.
The Company is already in an active discussion with some of the potential
clients to secure new business in the forthcoming year.
The Company has enough cash balances to run its operations for next 24 months.
The Company relies on outsourcing companies to perform its international
service maintenance which helps the company to manage its cost better and also
keep the lowest possible headcount on the payroll.
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 2024 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 2024.
4. REVENUE
Revenue represents the fair value of the consideration received or receivable
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.
6 months period ended 6 months period ended
30-Sep-24 30-Sep-23
Revenue 118,137 212,120
118,137 212,120
Revenue is derived solely from Malaysia, Singapore and Thailand. Revenue
excludes value added tax and other sales taxes.
5. PROFIT PER SHARE
Basic profit 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.
Profit per share attributed to ordinary shareholders:
6 months period ended 6 months period ended
Year ended
30-Sep-24 31-Mar-2024 31-Sep-23
(Loss)/Profit for the period (£) (68,309) 26,426 14,870
Weighted average number of shares (Unit) 10,000,000 10,000,000 10,000,000
Basic and diluted profit per share (pence) (0.68) 0.26 0.14
6. COMPUTER EQUIPMENT
6 months Year 6 months period ended
period ended ended 30-Sep-23
30-Sep-24 31-Mar-24 £
£ £
Cost
Balance at beginning of period - - -
Addition during the period 2,634 - -
Exchange difference - - -
At the end of period 2,634 - -
Accumulated depreciation
Balance at beginning of period - - -
Charges for the period 47 - -
Exchange difference - - -
Balance at end of period 47 - -
Net book value 2,587 - -
7. RIGHT-OF-USE
6 months Year 6 months
period ended ended period ended
30-Sep-24 31-Mar-24 30-Sep-23
£ £ £
Cost
Balance at beginning of period 54,685 472,598 472,598
Reduction due to early termination during the period
- (472,598) -
Addition due to new lease term - 54,685
Exchange difference 4,601 - -
At the end of period 59,286 54,685 472,598
Accumulated depreciation
Balance at beginning of period 4,557 273,836 273,836
Charges for the period 9,881 72,913 56,569
Reversal of accumulated depreciation due to early termination
- (342,192) -
Exchange difference 383 - -
Balance at the end of period 14,821 4,557 330,405
Net book value 44,464 50,128 142,193
The Group subsidiary early terminated the lease agreement for an office with
effect from 31 December 2023 and entered to a new lease period of three (3)
years commence of 1(st) January 2024.
8. BANK
Cash and Cash equivalents are denominated in the following currencies:
6 months Year
period ended ended 6 months period ended
30-Sep-24 31-Mar-24 30-Sep-2023
£ £ £
Great Britain Pound 11,659 32,175 38,423
Singapore Dollar 19,903 20,111 20,579
United States Dollar 101,361 107,628 48,374
Malaysia Ringgit 144,502 176,466 155,772
277,426 336,380 263,148
9. TRADE AND OTHER RECEIVABLES
6 months Year 6 months
period ended ended period ended
30-Sep-24 31-Mar-24 30-Sep-23
£ £ £
Trade receivables 160,891 158,477 189,580
Prepayment and Deposit 21,453 6,801 37,092
Other receivables 162,136 142,890 133,739
344,481 308,167 360,411
10. TRADE AND OTHER PAYABLES
6 months Year 6 months
period ended ended period ended
30-Sep-24 31-Mar-24 30-Sep-23
£ £ £
Amount due to directors 3,750 4,159 12,068
Trade creditors - 6,030 -
Accruals 29,240 42,712 24,433
Contract liability 11,615 12,559 -
Other payables 84,028 38,078 31,876
128,632 103,538 68,377
11. LEASE LIABILITIES
Lease liabilities are payable as follow:
6 months Year 6 months
period ended ended period ended
30-Sep-24 31-Mar-24 30-Sep-23
£ £ £
Less than one year 9,472 17,176 47,865
More than one year 35,865 33,082 100,860
45,338 50,258 148,725
12. SEGMENTAL ANALYSIS
As of 30 September 2024, the Group operated as a single operating segment,
specializing in the provision of managed telecommunication services. While the
Group's headquarters and corporate activities are based in the United Kingdom,
the majority of its revenue originated from Malaysia totalling £88,137,
accounting for 75% of total revenue. The remaining revenue was primarily
generated from other countries within the South East Asia region.
13. RISK ARISING FROM FINANCIAL ASSETS AND LIBILITIES AND FAIR VALUE
DISCLOSURES
Categories of financial assets and liabilities
The following table categorises the carrying value of the financial assets and
liabilities at the balance sheet date. In each case the fair value is not
materially different to the carrying value.
Fair value
As at
30-Sep-24
Carrying value
£
Financial assets
Cash and cash equivalent 277,426 Not materially different
Trade and other receivables 300,442 Not materially different
Total financial assets 577,868
The contractual maturities of financial assets are all within 1 period of the
balance sheet date.
Fair value
As at
30-Sep-24
Carrying value
£
Financial liabilities
Amount due to directors 3,750 Not materially different
Trade and other payable 124,882 Not materially different
Total financial liabilities 128,632
The contractual maturities of financial liabilities are all within 1 period of
the balance sheet date.
Risk arising from financial assets and liabilities
The following paragraphs summarize the principal risks associated with the
company's financial assets and liabilities and how those risks are managed.
Liquidity and capital risk management
The Company's capital structure consists of items in shareholders' equity. The
Company's objectives when managing capital are to safeguard the Company's
ability to continue as a going concern in order to provide returns for
shareholders and benefits for other stakeholders and to maintain an optimal
capital structure to reduce the cost of capital.
This is done primarily through equity financing. Future financings are
dependent on market conditions. There were no changes to the Company's
approach to capital management during the period.
The Company has adequate sources of capital to complete its business plan,
current obligations and ultimately the development of its business over the
long term, and will need to raise adequate capital by obtaining equity
financing and/or incurring debt.
Liquidity risk is the risk that the Company will not be able to meet its
financial obligations as they fall due. As at 30 September 2024, the Company
had a cash balance of £277,426 to settle current liabilities of £128,632.
The Company's current financial liabilities are due on demand and are subject
to normal trade terms.
Interest rate risk
The Company does not currently have financial instruments that expose the
Company to significant interest rate risk as the Company does not have any
debt that bears variable interest rate.
Currency risk
The Company operates in two currencies: Pound Sterling ("GBP"), the functional
currency of the parent company, and Ringgit Malaysia ("MYR"), the functional
currency of the subsidiary. Currency risk arises primarily from the
translation of the subsidiary's financial results into GBP for reporting
purposes.
As at 30 September 2024, the Company's exposure to MYR-denominated assets and
liabilities amounted to £115,584. A 5% fluctuation in the MYR/GBP exchange
rate would result in an estimated impact of £5,779 on the Company's profit
and net assets, assuming all other variables remain constant. The Company
monitors foreign currency exposures regularly and considers appropriate risk
management strategies as needed.
The following Group's financial instruments are denominated in MYR:
As at As at
30-Sep-24 30-Sep-24
£ £
Financial assets
Cash and cash equivalent 144,502 155,771
Trade and other receivable 46,231 63,780
Total financial assets 190,733 219,551
Financial liabilities
Trade and other payables 75,149 47,500
Total financial liabilities 75,149 47,500
Net financial assets 115,584 172,051
Price risk
The Company does not hold any equity securities and therefore is not exposed
to price risk.
Credit risk
The company has receivables and remains confident in its ability to collect
these amounts due to the creditworthiness of its customers and effective
collection processes.
14. SHARE CAPITAL
Number of £
ordinary shares
Paid up:
10,000,000 ordinary shares at ₤0.10 each 10,000,000 1,000,000
At 30 September 2024, the total issued ordinary share of the Company were
10,000,000.
15. CHANGES IN ACCOUNTING POLICIES
There have been no changes in the accounting policies applied during the
interim period, which remain consistent with those applied in the most recent
annual financial statements.
16. SEASONAL OR CYCLICAL FACTORS
There are no seasonal factors that materially affect the Group's operation.
17. RELATED PARTY TRANSACTIONS
There were no related party transactions except for the payments of directors'
transactions disclosed in the interim financial statements.
6 months 6 months
period ended period ended
30-Sep-24 30-Sept-23
£ £
Amount due to directors
- Sayed Mustafa Ali 3,750 1,251
- Wong Chee Keong - 1,817
- Michael Goh Seng Kim - 9,000
3,750 12,068
The amount due to related party is interest-free and they are payable on
demand.
18. SIGNIFICANT EVENTS AND TRANSACTION
There were no significant events or transactions during the interim period
that require disclosure.
19. CONTINGENT LIABIITIES AND CONTINGENT ASSETS
The company has no material contingent liabilities or contingent assets as at
30 September 2024.
20. CONTROL
The directors consider there is no ultimate controlling party.
21. SUBSEQUENT EVENT
No subsequent events have occurred that require disclosure.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR EAFAAFDNLFEARecent news on Orient Telecoms
See all newsREG - Orient Telecoms PLC - Half-year Report as of 30 September 2024
AnnouncementREG - Orient Telecoms PLC - Result of AGM 2024
AnnouncementREG - Orient Telecoms PLC - Notice of AGM 2024
AnnouncementREG - Orient Telecoms PLC - Annual audit report year ended 31 March 2024
AnnouncementREG - Orient Telecoms PLC - Appointment of new auditor
Announcement