Half year results and strategic review

Stack BTC

30/04/2025 07:03

 

Half year results, outcome of strategic review

and proposed voluntary winding up

 

The Board of Kasei Digital Assets PLC is pleased to announce its half year results as well as the outcome of its strategic review.

 

Outcome of strategic review

 

On 17th January, the Board announced that it intended to conduct a full strategic review of the future of the Company.  The Board has now completed its review and has considered in particular the cost burden that shareholders bear as a result of the Company’s status as a public quoted company.

 

After much consideration, the Board has concluded that the costs involved with being a publicly quoted Company are a significant burden.  These costs include maintaining the Company’s presence on the Aquis Stock Exchange, the associated costs of advisers and auditors and the AIFMD regulatory costs involved with managing funds on behalf of investors, which involve either an external third party or investment in significant resources to bring in-house. 

 

Given the size of the Company, these combined costs have represented a substantial proportion of the returns that the Directors have generated from the Company’s investment activities and, as a result, they have decided that the interests of shareholders will be best served if the Company ceases to be a publicly quoted company.

 

The Board has therefore resolved to seek to wind the Company up by means of a members’ voluntary liquidation process and to return the net assets of the Company to shareholders in the form of cash.

 

The Company is solvent, has positive net assets and given that the bulk of the Company’s assets are in the form of readily realisable crypto currencies or cash, the Board expects the process of distributing the Company’s assets to shareholders to be a straightforward process, subject to the approval of shareholders.

 

Shareholders need take no action at this point and nothing will change in the short term.  The Company will maintain its quotation on the Aquis Stock Exchange until the time that the Company’s assets are distributed to shareholders in cash.  The Board plans to start a process of winding down the Company’s portfolio of crypto-assets in an orderly fashion over the next few months, taking profits where appropriate and being mindful of opportunities to maintain or create value for shareholders.  The Board will, in parallel, commence the legal process of winding the Company up with a view to having completed the process by no later than 30 September 2025.

 

The winding up of the Company will require shareholders’ approval by means of a special resolution which will be proposed at a general meeting to be convened in due course.  Shareholders will be kept up to date by means of further announcements as appropriate.

 

Half year results

 

Kasei Digital Assets PLC (KASH) today releases their interim accounts for the period August 24-Jan 25. During the period we continued to sell down some of the investment holdings recording a profit on disposal of £580,669. The intangible assets increased during the period to £3,373,272 and the company held cash of £865,494 at the 31st January 2025.

 

Since the period end the value of the Company’s intangible assets has dropped due to a sell off in risk assets triggered by US trade policy. Recently however volatility has subsided and the Company intends to prudently manage portfolio risk in line with its objectives as set out above.

 

As of the 31st March the investment portfolio comprised of

 

Underlying
Quantity
Price
Valuation
BTC
17.50
83,415.00
1,459,775.01
ETH
175.70
1,845.00
324,159.42
QNT
1,750.00
68.50
119,875.00
ADS
1,000,000.00
0.10
95,000.00
SOL
750.00
126.50
94,875.00
DAG
1,750,000.00
0.0435
76,125.00
LINK
3,750.00
13.55
50,812.50
AR
2,500.00
6.50
16,250.00
AVAX
1,000.00
18.75
18,750.00
TAO
150.00
225.00
33,750.00
REALITY
100,000.00

 

 

STATEMENTOFCOMPREHENSIVEINCOME FORTHEPERIODENDED31JANUARY2025
6 months
ended31
AUDITED
Note
January
2025
£
Yearended 31July2024
£
Turnover
17,915
54,327
Grossprofit
17,915
54,327
Profit/(loss)oninvestmentasset
-
134,881
Profit/(loss)ondisposalofdigitalasset
580,669
84,744
Administrativeexpenses
(150,184)
(273,319)
Operatingprofit
448,400
633
Profitforthefinancialperiod
448,400
633
Othercomprehensiveincome:
Itemsthatwillnotbereclassifiedtoprofitorloss:
Fairvaluemovements
802,508
1,106,409
Othercomprehensiveincomefortheperiod
802,508
1,106,409
Totalcomprehensiveincomefortheperiod/year
1,250,908
1,107,042
Thenotesonpages5to10formpartofthesefinancialstatements.


 

BALANCESHEET
ASAT31JANUARY2025
31January
AUDITED 31
July
Note
2025
£
2024
£
Fixedassets
Intangibleassets
5
3,373,272
2,737,186
3,373,272
2,737,186
Currentassets
Debtors:amountsfallingduewithinoneyear
6
610,351
610,441
Cashatbankandinhand
7
865,494
244,863
1,475,845
855,304
Creditors:amountsfallingduewithinone year
(22,611)
(16,892)
Netcurrentassets
1,453,234
838,412
Totalassetslesscurrentliabilities
4,826,506
3,575,598
Netassets
4,826,506
3,575,598
Capitalandreserves
Calledupsharecapital
332,284
332,284
Sharepremiumaccount
3,946,878
3,946,878
Capitalredemptionreserve
(27,992)
(27,992)
Otherreserves
1,923,070
1,120,562
Profitandlossaccount
(1,347,734)
(1,796,134)
4,826,506
3,575,598

 

 

KASEI DIGITAL ASSETS PLC

 

STATEMENTOFCHANGESINEQUITY
FORTHEPERIODENDED31JANUARY2025
Calledup
Share premium
Capital redemption
Other
Profitand
sharecapital
account
reserve
reserves
lossaccount
Totalequity
£
£
£
£
£
£
At1August2023
332,284
3,946,878
(27,992)
14,153
(1,796,767)
2,468,556
Profitfortheyear
----
633
633
Othercomprehensiveincome
---1,106,409
-
1,106,409
At1August2024
332,284
3,946,878
(27,992)
1,120,562
(1,796,134)
3,575,598
Profitfortheperiod
----
448,400
448,400
Fairvaluemovementsintheyear
---802,508
-
802,508
At31January2025
332,284
3,946,878
(27,992)
1,923,070
(1,347,734)
4,826,506


 

The notes on pages 5 to 10 form part of these financial statements.

 

 

 

 

 

Page 4

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 JANUARY 2025

 

 

1.            General information

 

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 levaraging 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.

 

2.              Accounting policies

2.1     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     Foreign currency translation Functional and presentation currency

The Company's functional and presentational currency is GBP.

 

Transactions and balances

 

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

 

At each period end foreign currency monetary items are translated using the closing rate. Non- monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

 

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

 

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 JANUARY 2025

 

 

2. Accounting policies (continued)

 

2.3     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:

 

2.4     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.

 

 

2.5     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.

 

2.6     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.

 

2.7     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.

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 JANUARY 2025

 

 

3.Turnover
Ananalysisofturnoverbyclassofbusinessisasfollows:
31January
2025
31July2024
£
£
StakingIncome
11,913
20,072
OptionPremium
-
21,022
InterestIncome
6,002
13,233
17,915
54,327

 

 

4.
Employees
2025
£
2024
£
Wagesandsalaries
27,000
47,728
Socialsecuritycosts
2,484
1,633
29,484
49,361

 

Within Wages and Salaries; £27,000 (2024 £47,728) related to Directors remuneration.

 

The average monthly number of employees, including the directors, during the period was as follows:

 

 

31 January
2025
31 July
2024
No.
No.
Employees
2
2

 

 

 

. 

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 JANUARY 2025

 

 

5. Digital assets

 

 

Digital Assets

£

Cost

At 1 August 2024 2,737,186

Additions 100,725

Disposals (213,822)

Revaluation surplus 749,183

 

At 31 January 2025 3,373,272

 

 

 

Net book value

At 31 January 2025 3,373,272

 

At 31 July 2024 2,737,186

 

 

 

 

 

6.
Debtors
Group
Group AUDITED 31
Company
Company AUDITED 31
31January
July
31January
July
2025
£
2024
£
2025
£
2024
£
Otherdebtors
-
90
-
90
Prepaymentsandaccruedincome
11,280
11,280
11,280
11,280
Deferredtaxation
599,071
599,071
599,071
599,071
610,351
610,441
610,351
610,441

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 JANUARY 2025

 

 

7.Cashandcashequivalents
Group
Group AUDITED 31
Company
Company AUDITED 31
31January
July
31January
July
2025
£
2024
£
2025
£
2024
£
Cashatbankandinhand
865,494
244,863
865,494
244,863
865,494
244,863
865,494
244,863

 

 

8. Creditors: Amounts falling due within one year

 

Group
Group
AUDITED 31
Company
Company
AUDITED 31
31January
July
31January
July
2025
£
2024
£
2025
£
2024
£
Tradecreditors
17,019
866
17,019
866
Amountsowedtogroupundertakings
-
-
207,201
207,201
Othertaxationandsocialsecurity
2,392
2,026
2,392
2,026
Accrualsanddeferredincome
3,200
14,000
3,200
14,000
22,611
16,892
229,812
224,093
9.
Deferredtaxation
2025
£
Atbeginningofyear
599,071
Atendofyear
599,071
31January
AUDITED 31
July
2025
£
2024
£
Acceleratedcapitalallowances
599,071
599,071
599,071
599,071

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 JANUARY 2025

 

 

10.Sharecapital
31January
AUDITED
31July
Allotted,calledupandfullypaid
2025
£
2024
£
33,228,360(2024-33,228,360)Sharesof£0.01each
332,284
332,284

 

Share Capital consists of 33,228,350 (2023: 33,228,350) subscribed Shares at £0.01 each. Of which 2,799.157 are unsubscribed Treasury Shares.