REG - Starcrest Education - Final Results

Starcrest EducationAnnouncement

22/04/2021 07:00

RNS Number : 2377W
  
Starcrest Education The Belt & Road
  
22 April 2021
  
 

22 April 2021
 
Starcrest Education The Belt & Road Limited
("Starcrest" or the "Company" or the "Group")
 
Final Results
 
Starcrest Education The Belt & Road Limited (LSE: OBOR), the international developer and operator of education services in Europe, is pleased to announce its audited final results for the year ended 31 December 2020.
 
Highlights 
 
·    Cash balance of £1,454,672 as at 31 December 2020
·    Loss before tax of £1,327,754 for the year ended 31 December 2020
·    In September 2019, the Company signed a non-legally binding heads of terms to acquire sixty per cent. of the issued share capital of The London School of Science and Technology Limited (the "Proposed Transaction")
o  Due to the uncertainties of the COVID-19 pandemic, it is now likely that there will be no further progression of the Proposed Transaction until after 30 June 2021.
 
John McLean OBE, Non-Executive Chairman, commented:
 
"We are pleased to announce Starcrest's final results for the year ended 31 December 2020.
 
"Since the Company's admission on the London Stock Exchange Main Market, our ambition has been to seek relevant acquisition opportunities to enable the Company to provide forward-thinking, value-added solutions for students, employees and societies in the 'One Belt, One Road' countries. 
 
"The Board believes that there remains significant potential for long-term growth within the international education sector and that Starcrest is well-positioned and sufficiently funded to deliver upon its strategy and to capitalise on this growth.
 
"Due to the uncertainties of the COVID-19 pandemic, it is now likely that there will be no further progression of the Proposed Transaction until after 30 June 2021. As such, we continue to work to identify other suitable acquisition targets that fit with the Company's search criteria and provide valuable opportunities for Starcrest and its shareholders. 
 
"Throughout the year, we have remained proud to support UK-China relations and we have continued to sponsor the UK-China Charity Initiative in order to raise funds for The Lord Mayor's Appeal charities in the UK and China Chamber of Commerce in the UK's poverty alleviation projects in China.  
 
"We would like to take this opportunity to thank the Company's shareholders for their support during what are still very uncertain times and all employees for their hard work.
 
"We look forward to providing further updates to the market in due course."
 
- Ends - 
 
 
Enquiries:
 




Starcrest Education
John McLean OBE, Non-Executive Chairman


 
+44 (0) 7768 031454
 




Allenby Capital Limited (Financial Adviser and Broker)
John Depasquale / James Hornigold 
 


 
+44 (0) 20 3328 5657 
 




Yellow Jersey PR (Financial PR)
Sarah Hollins
Henry Wilkinson


 
+44 (0) 20 3004 9512
 




 
 
Notes to editors:
Starcrest is an international developer and operator of education services in Europe. The newly formed entity has been established to seek acquisition opportunities in the international education sector.  
 
The Company intends to capture opportunities arising from the 'One Belt, One Road' ("OBOR") initiative, a foreign policy and economic strategy of the Chinese Government. The term derives from the Silk Road, the ancient trade route, and encompasses the overland 'Silk Road Economic Belt' and the '21st-Century Maritime Silk Road,' concepts introduced by Chinese President Mr Xi Jinping in 2013. These are the two major axes along which China proposes to economically link Europe to China through countries across Eurasia and the Indian Ocean. The OBOR initiative also links to Africa and Oceania. 
 
Starcrest listed on the Main Market of the London Stock Exchange on 31 January 2019 under the ticker symbol (LSE: OBOR). Further information can be found on the Company's website at https://www.starcresteducation.com
 
 
Chairman's Statement
 
Introduction
 
I am pleased to report the final results for the year ended 31 December 2020.
 
As announced upon the Company's admission to trading, Starcrest's strategic objective has been to provide innovative solutions that add value to students, employees and the wider society in 'One Belt, One Road' ("OBOR") countries. 
 
In line the Group's strategy, we have been proactively seeking relevant acquisition opportunities that fit with the Group's search criteria and that offer attractive growth potential. As a result, on 18 September 2019, Starcrest announced its intention to acquire sixty per cent. of the issued share capital of The London School of Science and Technology Limited ("LSST") (the "Proposed Transaction"). Given it is now likely that there will be no further progression of the Proposed Transaction until after 30 June 2021, due to the uncertainties of the COVID-19 pandemic, we are now pushing on at pace to seek other suitable acquisition targets. We hope to update the market in this regard in due course. 
 
Throughout the year, Starcrest remained highly supportive of UK-China relations and continued to sponsor the UK-China Charity Initiative, launched by The Lord Mayor's Appeal ("LMA") and China Chamber of Commerce in the UK ("CCCUK") to raise funds for the LMA's charities in the UK and CCCUK's poverty alleviation projects in China. 
 
Results and Trading
 
As of 31 December 2020, the Group had cash balances of £1,454,672. Loss before tax for the year ended 31 December 2020 was £1,327,754.   
 
The majority of the losses reported in the year, representing approximately £1.03m is attributed to professional fees and associated costs relating to the reverse takeover project in 2020 and funds incurred in legal, commercial and financial due diligence relating to the Proposed Transaction.
 
Since the year-end, the Group can confirm that its trading activity has remained in line with the Board's expectations.
 
Working Capital
 
As at 31 March 2021, funds held at our banks equated to £1,127,398.
 
The Board has reviewed its cash flows for the next 12 months on a stand-alone basis, having taken into account current overheads and projected costs associated with the due diligence on the Proposed Transaction. The Board is satisfied that the Group has sufficient funds for the next 12 months.
 
Strategy and COVID-19 
 
The Group continues to seek acquisition targets across Europe, which will add value and support this strategy. The Directors look forward to updating the market with our progress as and when possible.
 
While the global situation regarding COVID-19 persists, the wellbeing of our staff remains our ultimate priority. Following Government advice, in order to ensure the health and safety of all employees, all of the Company's personnel are now working from home as the Company's range of corporate activities continues. Additionally, for the foreseeable future, the Company does not plan to have an office within the UK as everything will be managed virtually.
 
As a direct result of the virus, we have noted a monumental shift in the education sector towards online, remote learning. The Board believes this trend will continue even once the negative effects of the virus have passed, and believes that it is right in aligning its strategy and search criteria for acquisition targets with this growing trend.
 
Summary and Outlook
 
The Board remains of the belief that Starcrest is well placed and has adopted the right strategy to capitalise on the enormous potential of the Chinese education sector and the opportunities arising from China's OBOR initiative.
 
We anticipate our Annual General Meeting for 2021 will be held remotely. We will notify shareholders of our proposed date when the Annual Accounts are circulated.  
 
The Board will continue to prioritise the safeguarding of all employees and we look forward to updating existing and prospective investors with our progress regarding our search for acquisition targets and other corporate news in due course. 
 
 
John McLean OBE
Non-Executive Chairman
22 April 2021
 
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the period ended 31 December 2020
 




 


Note


Year Ended
31 December 2020
£


 


Year Ended
31 December

2019
£




Administrative expenses


 


(1,537,335)


 


(1,214,374)




Operating loss


10


(1,537,335)


 


(1,214,374)




 


 


 


 


 




Finance expense


 


-


 


(2,372)




Loss before taxation


 


(1,537,335)


 


(1,216,746)




Taxation


13


-


 


-




Loss for the year


 


(1,537,335)


 


(1,216,746)




Other comprehensive loss


 


 


 


 




Exchange gain/(loss) arising on translation to presentation currency


 


 
209,581


 


 
(113,428)




Total comprehensive loss for the year


 


 
(1,327,754)


 


 
(1,330,174)




 


 


 


 


 




 


 




Loss per share - basic and diluted (pence per share)


14


(7.13)


 


(6.15)



 
 
 
 
 
 



  
 
 
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
For the year ended 31 December 2020
 




 


 


 


As at

31 December 2020


 


As at

31 December 2019




 


Note


 


           £ 


 


£




 


 


 


 


 


 




Assets


 


 


 


 


 




Non-current assets


 


 


 


 


 




Right-of-use assets


 


 


-


 


70,197




Total non-current assets


 


 


 


 


70,197




 


 


 


 


 


 




Current assets


 


 


 


 


 




Cash and cash equivalents


16


 


1,454,672


 


2,787,046




Trade and other receivables
 


 


 


16,681


 


14,600




Total current assets


 


 


1,471,353


 


2,801,646




Total assets


 


 


1,471,353


 


2,871,843




 


 


 


 


 


 




Equity and liabilities
Capital and reserves attributable to owners of the company


 


 


 


 


 




Share capital


18


 


215,600


 


215,600




Share premium


19


 


3,454,364


 


3,454,364




Other reserve


 


 


-


 


-




Retained earnings


 


 


(2,943,779)


 


(1,406,444)




Foreign exchange reserves


 


 


96,153


 


(113,428)




Total equity


 


 


822,338


 


2,150,092




 


 


 


 


 


 




Liabilities
Current liabilities
Trade and other payables


 
 
17


 


 
 
649,015


 


 
 
658,822




Lease liability


 


 


         -


 


62,929




Total liabilities


 


 


649,015


 


721,751




 


 


 


 


 


 




Total equity and liabilities


 


 


1,471,353


 


2,871,843




 


 


 


 


 


 



 
 
 
 
 
 
 



 
These financial statements were approved by the Board of Directors for issue on 22 April 2021 and signed on behalf by:
 
 
 
John McLean OBE
Non-Executive Chairman
22 April 2021


 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2020
 




 


 
Share
capital


 
Share
premium


 


 
Other Reserve


 


 
Retained earnings


 


Foreign exchange reserves


 
Total
equity




 


£


£


 


£


 


£


 


£


£




 


 


 


 


 


 


 


 


 


 




Balance at 01 January 2020


215,600


3,454,364  


 


      -


 


(1,406,444)


                               


  (113,428)               2,150,092




 


 


 


 


 


 


 


 


 




Loss for the year


-


         -


       -


  (1,537,335)


                               


-                        (1,537,335)




 


 


 


 


 


 


-   




Total comprehensive income


215,600


3,454,364


 


   (2,943,779)


 


(113,428)                 612,757




 


 


 


 


 


 


 




Other comprehensive loss for the year
 


-


-


 


        -


 


-


 


  209,581   


  209,581




Balance at 31 December 2020


215,600


3,454,364


       -


(2,943,779)


            


96,153                 822,338




 


 


 


 


 


 


 




 
 
 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2019
 




 


 
Share
capital


 
Share
premium


 


 
Other Reserve


 


 
Retained earnings


 


Foreign exchange reserves


 
Total
equity




 


£


£


 


£


 


£


 


£


£




 


 


 


 


 


 


 


 


 


 




Balance at 01 January 2019


8,000


  -


 


3,773,141


 


(189,698)


                               


-                3,591,443




 
Shares issued


 
207,600


 
-


 


 
(207,600)


 


 
-


 


 
                -


 
-




 


 


 


 


 


 


 


 


 


 




Transferred from other reserves to share premium


-


3,565,541


(3,565,541)


 


-


 


                -


-




 


 


 


 


 


 


 


 


 




Transactions costs deducted from equity
 


-


(111,177)


-


 


-


 


            -


(111,177)




Loss for the year


-


         -


-


(1,216,746)


                              


-             (1,216,746)




 


 


 


 


 


 


-   




Total comprehensive income


215,600


3,454,364


-


(1,406,444)


 


         -                2,263,520




 


 


 


 


 


 


  




Other comprehensive loss for the year
 


-


-


 


-


 


-


 


     (113,428)


 (113,428)




Balance at 31 December 2019


215,600


3,454,364


-


(1,406,444)


            


(113,428)              2,150,092




 


 


 


 


 


 


 






CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December 2020
 




 


Year Ended
31 December 2020


 


 


Year Ended
31 December 2019




 


£


 


 


£




 


 


 


 


 




Cash flows from operating activities


 


 


 


 




Loss for the year
Depreciation


(1,537,335)
- 


 


 


(1,216,746)
 88,531




Finance cost
(Increase) in receivables


-
(2,081)


 


 


2,372
-




(Decrease)/increase in payables


(2,539)


 


 


281,377




Net cash used in operating activities
 
Cash flows from financing activities


(1,541,955)
 


 


 


(844,466)
 




Expenses paid on share issue
Principal paid on lease liabilities
Interest paid on lease liabilities


- 
-
-


 


 


(174,837)
(98,171)
(2,372)




Net cash (used)/generated from financing activities


-


 


 


(275,380)




 


 


 


 


 




Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at beginning of the financial period


(1,541,955)
 
 
2,787,046


 


 


(1,119,846)
 
 
4,020,320




Exchange losses on cash and cash equivalents


209,581


 


 


(113,428)




Cash and cash equivalents at end of financial period


1,454,672


 


 


2,787,046




  
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2020
 
1.            GENERAL INFORMATION
Starcrest Education The Belt & Road Limited ("the Company") was incorporated and registered in the Cayman Islands as a private company limited by shares on 23 May 2018 under the Companies Law (as revised) of The Cayman Islands, with the name Starcrest Education The Belt & Road Limited, and registered number 337619.
 
The Company's registered office is located at Cricket Square, Hutchins Drive PO Box 2681, Grand Cayman KY1-1111, Cayman Islands.
 
2.            PRINCIPAL ACTIVITIES
The principal activity of the Group is to seek education related acquisition opportunities in Europe.
 
3.            RECENT ACCOUNTING PRONOUNCEMENTS  
(a)      New interpretations and revised standards effective for the year ended 31 December 2020
The International Accounting Standards Board (Board) has issued an amendment to IFRS 16 Leases to make it easier for lessees to account for COVID-19-related rent concessions such as rent holidays and temporary rent reductions.
 
The Group's lease had a term of 6 months and therefore the Group have elected not to recognise an asset or liability as per the short-term lease exemption of IFRS 16. The lease payments have been recognised in profit or loss on a straight-line basis over the lease term.
 
(b)      Standards and interpretations in issue but not yet effective
There are a number of standards and interpretations which have been issued by the International Accounting Standards Board that are effective for periods beginning subsequent to 1 January 2020. The Directors do not believe these standards and interpretations will have a material impact on the financial statements once adopted.
 
4.            BASIS OF PREPARATION
The consolidated financial information has been prepared in accordance with International Financial Reporting Standards adopted pursuant to Regulation (EC) No. 1606/2002 as it applies to the European Union ("IFRS") and prepared under the historic cost convention.
 
The consolidated financial statements include the audited financial statements for the Company for the year ended 31 December 2020 and its subsidiary companies (See Note 15).
 
The Group's functional currency is USD. The Company listed its shares on the Main market of the London Stock Exchange on 31 January 2019. The directors have decided to present the financial information in Pounds Sterling (£), which is the Company's presentation currency, as the Company is listed in the UK.
 
These financial statements have been prepared on a going concern basis. The Directors consider that, having reviewed current cash flow forecasts, including specific consideration of the potential risks associated with COVID-19, they have a reasonable expectation the Group has reasonable resources to continue its operations for the foreseeable future. 
 
5.            SIGNIFICANT ACCOUNTING POLICIES
5.1         Foreign currency translation
 
Transactions in currencies other than the entity's functional currency (foreign currencies) are recognised at the rates of exchange prevailing on the dates of the transactions. At each reporting date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.
 
Exchange differences are recognised in profit or loss in the period in which they arise.
 
Results at 31 December 2020 are translated into the presentation currency. Assets and liabilities are translated at the closing rate while income and expenses are translated at exchange rates at the dates of the transactions. Differences arising are recognised in Other Comprehensive Income in the period in which they arise.
 
5.2         Financial instruments
 
A financial asset or a financial liability is recognised only when the Group becomes a party to the contractual provisions of the instrument. 
 
Financial instruments are initially recognised at the transaction price as this represents fair value, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest. 
 
Financial assets 
 
Financial assets are initially recognised at fair value, less transaction costs. Subsequent to initial recognition, they are recorded at amortised cost.
 
Financial liabilities
 
Financial liabilities are initially recognised at fair value less transaction costs. Subsequent to initial recognition, they are recorded at amortised cost.
 
5.3         Share Capital
 
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares or options in relation to ordinary shares are shown in equity as a deduction, net of taxation, from the proceeds.  
 
5.4         Cash and cash equivalents 
 
Cash and cash equivalents include cash in hand, deposits held on call with banks and other short term highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value. 
 
5.5         Earnings per share 
 
Basic earnings per share is computed using the weighted average number of shares outstanding during the period. Diluted earnings per share is computed using the weighted average number of shares during the period plus the dilutive effect of dilutive potential ordinary shares outstanding during the year. 
 
5.6        Leases
 
Where the Group enters into leases that are longer than 12 months, the Group recognises right-of-use assets measured at an amount equal to the lease liability. The lease liability is measured at the present value of the remaining lease payments, discounted using the Group's incremental borrowing rate at date of lease commencement. Lease modifications are accounted for at the effective date of the lease modification.
                                                                                                               
6.            ACCOUNTING ESTIMATES AND JUDGEMENTS 
Preparation of financial information in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. 
 
There are no significant accounting estimates or judgements that affect reported amounts of assets, liabilities, income and expenses in this period.
 
7.            FINANCIAL RISK MANAGEMENT 
The Group has exposure to liquidity risk, foreign currency risk and capital risks from its use of financial instruments. Credit, interest rate and market risks are not considered to be material to the Group. The Group is not subject to any external imposed capital requirements.
 
The Group's financial instruments consist mainly of cash and accounts payable.
 
a) Liquidity risk
 
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities. The Group's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group's reputation. 
 
The Group's financial liabilities comprise amounts due to the parent company and accruals. The Group's financial assets comprise cash and cash equivalents.
 
The Group has sufficient cash to meet their liabilities as they fall due. 
 
b) Foreign currency risk 
 
During the period, the board decided to convert 80% of the U.S. Dollars in Singapore's OCBC Bank to British pounds and transfer them to HSBC bank account in the UK. Financial risks of variations in foreign currency exchange rates have been significantly reduced as a result.
 
The impact of exchange rate fluctuations that are recognised through other comprehensive income are those that arise on translation from functional to presentation currency. The carrying amounts of the balances and transactions denominated in a currency other than the Group's presentation currency are as follows:
 




2020


 


 


United States Dollar


 


RMB




Cash at bank


 


 


256,446


 


- 




Amounts due to the parent company


 


 


        -


 


(167,781)




Total


 


 


256,446


 


(167,781)




 




2019


 


 


United States Dollar


 


RMB




Cash at bank


 


 


2,787,046


 


- 




Amounts due to the parent company


 


 


-


 


(162,115)




Total


 


 


2,787,046


 


(162,115)




 
A ten percent strengthening of GBP (£) against the following currencies at 31 December would have (decreased)/increased reported equity and other comprehensive income by the following amounts: 
 




 


 2020 
Other comprehensive income


 
Equity




United States Dollar


(17,081)


(17,081)




RMB


15,253


15,253




 


 


 




 


 2019 
Other comprehensive income


 
Equity




United States Dollar


(253,368)


(253,368)




RMB


14,738


14,738




 
A ten percent weakening of GBP (£) against the following currencies at 31 December would have (decreased)/increased reported equity and other comprehensive income by the following amounts: 
 




 


               2020




 


Other comprehensive income


Equity




United States Dollar


20,876


20,876




RMB


(18,642)


(18,642)




 


 


 




 


         2019


 




 


Other comprehensive income


Equity


 




United States Dollar


309,672


309,672


 




RMB


(18,013)


(18,013)


 



 
 
 
 
 
 



 
The impact of the exchange rate fluctuations that are recognised through profit or loss are those that arise on translation to functional currency. The carrying amounts of the balances and transactions denominated in a currency other than the entity's functional currency (United States Dollar) are as follows:
 




2020


 


 


GBP


 


RMB




Amounts due to the parent company 
Creditors


 


 


(56,881)
 
(63,143)


 


(229,005)
 
-




Accruals
Other creditors


 


 


(528,873)
(7,940)


 


-
-




Trade and other receivables


 


 


21,515


 


-




Total


 


 


(635,321)


 


(229,005)




 




2019


 


 


GBP


 


RMB




Amounts due to the parent company


 


 


(55,208)


 


(214,380)




Lease liabilities


 


 


(83,365)


 


-




Accruals


 


 


(602,805)


 


-




Trade and other receivables


 


 


19,341


 


-




Total


 


 


(722,036)


 


(214,380)




 
 
A ten percent strengthening of USD ($) against the following currencies at 31 December would have (decreased)/increased reported equity and profit or loss by the following amounts: 
 




 


 2020 
Profit or loss


 
Equity




GBP


51,749


51,749




RMB


20,819


20,819




 


 


 




 


 2019 
Profit or loss


 
Equity




GBP


65,640


65,640




RMB


19,489


19,489




 


 


 




A ten percent weakening of USD ($) against the following currencies at 31 December would have (decreased)/increased reported equity and profit or loss by the following amounts: 
 




 


 2020 
Profit or loss


 
Equity




GBP


(42,316)


(42,316)




RMB


(25,445)


(25,445)




 


 


 




 


 2019 
Profit or loss


 
Equity




GBP


(80,226)


(80,226)




RMB


(23,820)


(23,820)




 


 


 




c)  Credit risk 
 
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. Credit allowances are made for estimated losses that have been incurred by the reporting date.
 
8.            CAPITAL MANAGEMENT
The Group actively manages the capital available to fund the Group, comprising equity and reserves. The Group's objectives when maintaining capital is to safeguard the entity's ability to continue as a going concern, so that it can continue to provide returns for shareholders.
 
9.            SEGMENT REPORTING 
IFRS 8 defines operating segments as those activities of an entity about which separate financial information is available and which are evaluated by the Board of Directors to assess performance and determine the allocation of resources. The Board of Directors are of the opinion that under IFRS 8 the Group has only one operating segment. The Board of Directors assess the performance of the operating segment using financial information which is measured and presented in a manner consistent with that in the Financial Statements. Segmental reporting will be reviewed and considered in light of the development of the Group's business over the next reporting period. 
 
10.          OPERATING LOSS




 


The operating loss is stated after charging/(crediting):
 




 


 


Year ended
31 December 2020


Year ended
31 December 2019




 


 


£


£




 


Foreign exchange (gains) 


           -


     -



 
 
 
 
 
 



 
Administrative expenses incurred in the year principally include amounts incurred in connection with the Proposed Transaction, being legal and professional fees, together with directors and staff costs as shown in note 11.
 
11.          STAFF COSTS AND KEY MANAGEMENT EMOLUMENTS 




 


Year ended
31 December 2020
 


Year ended
31 December 2019




 


£


  £




Key management emoluments


 


 




Remuneration


178,333  


142,083




 


 


 




 


£


            £ 




Executive Directors


 


 




Xingchen Zhu
Xiaojun Zhang
Peng Luo


10,000 
65,833
7,500 


27,500
27,500
-  




 


 


 




Non-executive Directors


 


 




John McLean OBE


35,000


32,083




Norman Cumming


30,000


27,500




Nicholas Petford DSc


30,000


27,500




 


178,333


142,083




Employees
Staff cost
 
National Insurance
Employers N.I. (Directors)
Employers N.I. (Employees)
 
Pension
Staff pensions (Directors)
Staff pensions (Employees)


 
131,917
 
 
5,921
9,026
14,947
 
1,375
4,121
5,496


 
-
 
 
-
-
-
 
-
-
-



 
 
 
 



 
12.          AUDITORS' REMUNERATION 




 


The following remuneration was received by the Company's auditors:
 




 


 


Year ended
31 December 2020


Year ended
31 December 2019




 


 


          £


       £




 


Remuneration for the audit of the Company's financial statements


 


            29,625


25,000




 


Corporate finance services


            90,000


175,000



 
 
 
 
 
 
 



 
13.          TAXATION 
The Company is incorporated in the Cayman Islands, and its activities are subject to taxation at a rate of 0%. 
 
14.          EARNINGS PER SHARE
The Company presents basic and diluted earnings per share information for its ordinary shares. Basic earnings per share is calculated by dividing the loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares in issue during the reporting period.
There is no difference between the basic and diluted loss per share.
 




 


Year ended
31 December 2020


Year ended
31 December 2019




 


 


 




Loss attributable to ordinary shareholders (£)


(1,537,335)


(1,216,746)




 


 


 




Weighted average number of shares


21,560,000


19,796,822




 


 


 




 


 


 




Loss per share (expressed as pence per share)


(7.13)


(6.15)




 


 


 




 


 


 


 



 
 
 
 



 
The loss per share for the period has been calculated using the weighted average number of shares in issue during the year. 
 
15.          SUBSIDIARIES
All subsidiaries which have been included in these consolidated financial statements, are as follows:




 
 
 
Name


Country of incorporation and principal place of business


Proportion of ownership interest 
at 31 December 2020


Proportion of ownership interest 
at 31 December 2020


 


 




Starcrest Education Plc


 United Kingdom           
 


100%   
 


 100%   
 


 


 




Starcrest Education Management (UK) Limited 


 United Kingdom           
 


                 100%


  100%


 


 




 
16.          CASH AND CASH EQUIVALENTS




 


 


Year ended
31 December
2020


 


Year ended
31 December
2019




 


 


              £
 


 


            £
 




Cash at bank 


 


1,454,672


 


2,787,046




 


 


 


 


 




Cash at bank earns interest at floating rates based on daily bank deposit rates.




 
17.          TRADE AND OTHER PAYABLES




 


 


 


            Year ended

         31 December

                      2020


  Year ended

31 December

             2019




 


 


 


      £


               £




 
Amounts due to the parent company
Accruals
Trade payables 
Other creditors


 


 


 
209,455
 387,481
    46,262
      5,817


 
  203,788
  455,034
               -
               -




 


 


 


  649,015


  658,822




 
All payables are financial liabilities measured at amortised cost. 
 
Amounts due to the parent company are unsecured, interest free and repayable on demand.
 
18.          SHARE CAPITAL




 


Number of shares


Nominal
value

£




Authorised


 


 




Ordinary shares of £0.01 each 


1,000,000,000


10,000,000




 


 


 




Issued and fully paid


 


 




Issue of ordinary shares of £0.01 each


21,560,000


215,600




 
 
 
 
19.          SHARE PREMIUM
The transaction costs of £111,177 incurred in the year ended 31 December 2019 and £291,222 incurred in the year ended 31 December 2018 have been deducted from equity.
 
The opening and closing balance of Share premium of £3,454,364 has been recognised. 
 
20.          RESERVES
The following describes the nature and purpose of each reserve within equity:
 




Reserve


Description and purpose




 


 




Share premium


Amount subscribed for share capital in excess of nominal value.
 




Other reserve


Consideration received for shares which are not yet issued.
 




Retained earnings


All other net gains and losses and transactions not recognised elsewhere.
 




Foreign exchange reserve


Gains/losses arising on retranslation of net assets from functional to presentation currency.




 
21.          RELATED PARTY TRANSACTIONS
As at 31 December 2020, an amount of £209,455 (31 December 2019: £203,788) was owed to Starcrest Education Management Company Ltd. This amount mainly arose from business expenses paid on behalf of the Company by the parent company.
 
The remuneration of the Directors, the key management personnel of the Company, is set out in note 11. 
 
22.          ULTIMATE CONTROLLING PARTY
The immediate parent company is Starcrest Education Management Company Ltd. The ultimate parent company is Shenzhen Xing Chen Investment Holdings Limited. The ultimate controlling party is Mr Peng Luo, who is also a director of the Company.
 
 

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 or visit 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.
 
  END
 
 
FR SEEEDFEFSEEL