Half-Year Results
26/04/2024 07:01
KASEI DIGITAL ASSETS PLC
("Kasei" or the "Company")
Half-Year Results
Kasei Digital Assets PLC (AQSE: KASH), a digital asset and web 3.0
investment company, announces its unaudited Half-Year results for the six
months ended 31 January 2024. The full unaudited financial statements will be
uploaded to the Company website:
https://kaseidigitalassets.com
Period Highlights
During the period the Company has taken advantage of market turbulence to add
to core positions as well as incept new opportunistic trades. The Company
added to its position in the Grayscale Bitcoin Investment Trust at significant
discounts to NAV as well as averaging down on high conviction holdings.
The overall market recovery helped the digital assets the Company held
increase by over £600,000 to £1,980,104. In addition the Company also grew
its income from staking and yield generation.
Post Period Highlights
Following the approval of spot BTC ETF’s in January the Company closed its
position in GBTC and rolled some of the profits into spot BTC. The significant
inflows generated by the ETF launches has led to an appreciation in NAV to
£3,684,327.83 as at 31 March 2024.
Staking rewards and income from yield generating strategies are also expected
to be markedly higher this year with spot prices at current levels.
Outlook
Our portfolio as of 31 March 2024 is as follows:
Asset Quantity Price Valuation
BTC 29.50 $70,858.00 $2,090,311
ETH 262.93 $3,624.00 $952,858
LINK 4,990.00 $19.02 $94,910
SOL 1,000.00 $199.72 $199,720
AR 2,500.00 $38.54 $96,350
ALGO 13,061.58 $0.26 $3,455
AVAX 1,026.71 $53.72 $55,155
QNT 2,500.00 $133.07 $332,675
HBAR 249,890.00 $0.12 $28,837
HNT 2,500.00 $5.99 $14,975
DAG 2,500,000.92 $0.06 $156,250
LTX 50,000.00 $0.16 $7,850
ADS 500,000.00 $0.22 $111,000
TAO 50.00 $498.13 $24,907
The management of Kasei remains confident that the Digital Asset industry will
have further growth this year as ETF adoption continues both in the USA and in
other jurisdictions across the world. There has also been a lot of attention
paid over the last few weeks to BlackRock, the world's largest asset manager,
which has launched its first tokenised money market fund on the Ethereum
blockchain. As more and more use cases and utility come to the fore we believe
the asset prices will rise to reflect this demand and that we are well placed
to capitalise on the opportunities as they arise.
further information please contact:
Kasei Digital Assets PLC Engage with us directly at our investor hub Jai Patel Chief Investment Officer Sign up at: investors.kaseidigitalassets.com (http://investors.kaseidigitalassets.com) Jai.patel@kaseiholdings.com
VSA Capital Limited (AQSE Corporate Adviser) Simon Barton / Thomas Jackson (Corporate Finance) +44 (0)203 005 5000
About Kasei Digital Assets
Kasei is a team of experienced financial experts who came together through a
shared interest in the digital asset ecosystem and the belief that blockchain
technology will transform industries and have significant global economic
impact.
Kasei’s cumulative 100 years plus experience in navigating traditional
financial markets, in particular highly volatile asset classes, provides the
Company with a solid grounding to build a balanced portfolio positioned to
take advantage of the disruptive innovation in this space.
Despite Kasei’s belief that these assets are positioned for highly
significant long-term gains, the Company employs a balanced risk-and-reward
strategy. This provides shareholders with an actively managed portfolio of
crypto assets, as well as exposure to investments in blockchain enabled
companies and technology, all in the form of one listed security.
STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDED 31 JANUARY 2024
Unaudited period to 31 AUDITED
Note January 2024 £ Year to July 2023 £
Turnover 3 18,803 40,519
Gross profit 18,803 40,519
Administrative expenses (173,263) (290,042)
Profit (loss) on disposal of digital asset 4,075 (701)
Impairment of digital asset - (128,101)
Operating loss (150,385) (378,325)
Tax on loss - 94,581
Loss for the financial period (150,385) (283,744)
Other comprehensive income for the period
Fair value movements 647,112 14,153
Other comprehensive income for the period 647,112 14,153
Total comprehensive income for the period 496,727 (269,591)
The notes form part of these financial statements.
REGISTERED NUMBER: 13503888
BALANCE SHEET
AS AT 31 JANUARY 2024
Unaudited
period to 31 AUDITED
January Year to July
2024 2023
Note £ £
Fixed assets
Intangible assets 5 1,980,104 1,434,003
Other fixed asset investments 149,715 89,679
Investment in subsidiary 50,000 50,000
2,179,819 1,573,682
Current assets
Debtors: amounts falling due within one year 7 613,011 636,630
Cash at bank and in hand 8 266,970 351,469
879,981 988,099
Creditors: Amounts Falling Due Within One Year 9 (251,718) (250,426)
Net current assets 628,263 737,673
Total assets less current liabilities 2,808,082 2,311,355
Net assets 2,808,082 2,311,355
Capital and reserves
Called up share capital 10 332,284 332,284
Share premium account 3,789,677 3,789,677
Treasury Shares (27,992) (27,992)
Other reserves 661,265 14,153
Profit and loss account (1,947,152) (1,796,767)
2,808,082 2,311,355
The financial statements were approved and authorised for issue by the board
and were signed on its behalf on 24 April 2024.
................................................
Brendan Kearns
Director
The notes form part of these financial statements.
STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 31 JANUARY 2024
Called up share capital £ Share premium account £ Treasury Shares £ Other reserves £ Profit and loss account £ Total equity £
At 1 February 2023 290,617 3,639,253 - - (1,513,023) 2,416,847
Loss for the period - - - - (283,744) (283,744)
Other comprehensive income - - - 14,153 - 14,153
Unsubscribed shares - - (27,992) - - (27,992)
Shares issued during the period 41,667 150,424 - - - 192,091
At 1 August 2023 332,284 3,789,677 (27,992) 14,153 (1,796,767) 2,311,355
Loss for the period - - - - (150,385) (150,385)
Movement in fair value - - - 647,112 - 647,112
At 31 January 2024 332,284 3,789,677 (27,992) 661,265 (1,947,152) 2,808,082
The notes form part of these financial statements.
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 JANUARY 2024
Unaudited
period to 31 AUDITED
January year to July
2024 2023
£ £
Cash flows from operating activities
Loss for the financial period (150,385) (283,744)
Adjustments for:
Impairments of fixed assets - 116,781
Profit on disposal of digital asset 4,075 -
Income generated on digital assets 21,925 -
Decrease/(increase) in debtors 23,619 (114,167)
Increase/(decrease) in creditors 1,291 (14,064)
Increase in interactive broker cash investment 79,926 -
Net cash generated from operating activities (19,549) (295,194)
Cash flows from investing activities
Purchase of digital assets (14,150) (623,457)
Sale of digital assets 9,236 532,958
Purchase of unlisted and other investments (60,036) (75,275)
Net cash from investing activities (64,950) (165,774)
Cash flows from financing activities
Issue of ordinary shares - 164,099
Net cash used in financing activities - 164,099
Net (decrease) in cash and cash equivalents (84,499) (296,869)
Cash and cash equivalents at beginning of period 351,469 648,338
Cash and cash equivalents at the end of period 266,970 351,469
Cash and cash equivalents at the end of period comprise:
Cash at bank and in hand 266,970 351,469
266,970 351,469
The notes form part of these financial statements.
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 JANUARY 2024
1. General information
Kasei Digital Assets Plc ("the Company") is a public limited company limited
by shares and incorporated in England. Its registered office is 72 Charlotte
Street Ground Floor, London, England, W1T 4QQ, United Kingdom.
The Company's shares are traded on the Aquis Stock Exchange Growth Market
under ticker KASH and ISIN number GB00BN950D98.
The Company's aim is to provide investors with exposure to the digital assets
ecosystem and an attractive rate of return by leveraging the Board's
expertise, experience and networks in the cryptocurrency sector. The Company
also intends to invest in venture capital and private equity investments in
the blockchain ecosystem.
1. Accounting policies 1. Basis of preparation of financial
statements
The financial statements have been prepared under the historical cost
convention unless otherwise specified within these accounting policies and in
accordance with Financial Reporting Standard 102, the Financial Reporting
Standard applicable in the UK and the Republic of Ireland and the Companies
Act 2006.
The preparation of financial statements in compliance with FRS 102 requires
the use of certain critical accounting estimates. It also requires management
to exercise judgment in applying the Company's accounting policies.
The following principal accounting policies have been applied:
2.2 Revenue
Revenue is recognised to the extent that it is probable that the economic
benefits will flow to the Company and the revenue can be reliably measured.
Revenue is measured as the fair value of the consideration received or
receivable, excluding discounts, rebates, value added tax and other sales
taxes. The following criteria must also be met before revenue is recognised:
2.3 Current and deferred taxation
The tax expense for the period comprises current and deferred tax. Tax is
recognised in profit or loss except that a charge attributable to an item of
income and expense recognised as other comprehensive income or to an item
recognised directly in equity is also recognised in other comprehensive income
or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws
that have been enacted or substantively enacted by the balance sheet date in
the countries where the Company operates and generates income.
2.4 Debtors
Short-term debtors are measured at transaction price, less any impairment.
Loans receivable are measured initially at fair value, net of transaction
costs, and are measured subsequently at amortised cost using the effective
interest method, less any impairment.
2. Accounting policies (continued)
2.5 Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions
repayable without penalty on notice of not more than 24 hours. Cash
equivalents are highly liquid investments that mature in no more than three
months from the date of acquisition and that are readily convertible to known
amounts of cash with insignificant risk of change in value.
In the Statement of Cash Flows, cash and cash equivalents are shown net of
bank overdrafts that are repayable on demand and form an integral part of the
Company's cash management.
2.6 Creditors
Short-term creditors are measured at the transaction price. Other financial
liabilities, including bank loans, are measured initially at fair value, net
of transaction costs, and are measured subsequently at amortised cost using
the effective interest method.
3. Turnover
An analysis of turnover by class of business is as follows:
Unaudited period to 31 AUDITED
January year to 31
2024 £ July 2023 £
Staking income 8,439 12,997
Option income 4,190 20,469
Interest income 6,174 7,052
18,803 40,518
4. Directors' remuneration
Unaudited period to 31 AUDITED
January year to 31
2024 £ July 2023 £
Directors' emoluments 27,000 48,000
27,000 48,000
5. Intangible assets
Digital Assets £
Cost
At 1 August 2023 1,434,003
Additions 14,150
Disposals (9,236)
Revaluation surplus 541,187
At 31 January 2024 1,980,104
Net book value
At 31 January 2024 1,980,104
At 31 July 2023 1,434,003
6. Fixed asset investments
Investments in Other fixed
subsidiary companies asset investments Total
£ £ £
Cost or valuation
At 1 August 2023 50,000 89,679 139,679
Additions - 60,036 60,036
At 31 January 2024 50,000 149,715 199,715
7. Debtors
Unaudited period to 31 Audited period to 31
January January
2024 £ 2023 £
Other debtors 13,940 37,559
Deferred taxation 599,071 599,071
613,011 636,630
8. Cash and cash equivalents
Unaudited period to 31 January 2024 £ AUDITED year to 31 July 2023 £
Cash at bank and in hand 266,970 351,469
266,970 351,469
9. Creditors: Amounts falling due within one year
Unaudited period to 31 January 2024 £ AUDITED year to 31 July 2023 £
Trade creditors 878 316
Amounts owed to group companies 207,200 207,200
Other taxation and social security 7,016 6,287
Other creditors 6,273 6,272
Accruals and deferred income 30,351 30,351
251,718 250,426
1. Share capital
Unaudited period to 31 Audited period to 31
January January
2024 £ 2023 £
Allotted, called up and fully paid
30,429,193 (2023 - 30,429,193) Ordinary Share Capital (subscribed shares) 304,292 304,292
shares of £0.01 each
2,799,157 (2023 - 2,799,157) Treasury Shares (unsubscribed shares) 27,992 27,992
shares of £0.01 each
332,284 332,284
1. Earnings per share
Basic earnings per share is calculated by dividing the profit attributable to
ordinary shareholders by the weighted average number of ordinary shares
outstanding during the year.
Diluted earnings per share are calculated by dividing the profit attributable
to ordinary owners of the parent by the weighted average number of ordinary
shares outstanding during the year plus the weighted average number of
ordinary shares that would have been issued on the conversion of all dilutive
potential ordinary shares into ordinary shares.
The following reflects the income and share data used and dilutive earnings
per share computations to the period 31 January 2024:
Unaudited period to 31
January
2024
£
Profit / (loss) for the period attributable to owners of the
Company (147,263)
Number of shares
Basic weighted average number of shares 30,429,193
Effect of dilutive share options -
Diluted weighted average number of shares 30,429,193
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