INTERIM FINANCIAL STATEMENTS ENDED 30 JUNE 2022

RNS Number : 5267Z
daVictus plc
15 September 2022
 

15 September 2022

 

 

 

DAVICTUS PLC

 

 

("DAVICTUS" OR "THE COMPANY")

 

UNAUDITED INTERIM FINANCIAL STATEMENTS ENDED 30 JUNE 2022

 

daVictus plc, (LSE: DVT), announces its unaudited interim financial statement for the period ended 30. June 2022.

 

The Interim report is also available on the Company's website at:  http://www.davictus.co.uk  .

 

 

 

For further information, please contact:

 

Robert Pincock

robert@davictus.co.uk

 

+603 5613 3388

 

 

 


 

Chairman statements

I am pleased to report the interim financial statements of Davictus PLC (the "Company" or Davictus") for the six months ended 30 June 2022.

 

The Company currently has two (2) franchisees located in Kuala Lumpur, Malaysia and Bangkok Thailand.

 

Although the worst seems to be over, the aftereffects of the COVID-19 pandemic continues to impact businesses globally and retail segment. After two years of uncertainty, the health crises had turned into a global financial downturn due to the restrictions imposed by most countries to contain the spread of the virus. The Company had given its best to support and assist the franchisees to revise restaurant guidelines to adapt with the new normal of post COVID-19 customer behaviour after reopening the economy.

 

Based on the above, the Company will adopt a more careful approach in recruiting additional franchisees for other cities in Asia as initially planned.

 

The Company places importance to the welfare of its employees. Additionally, safety concerns of our franchisee's customers remain main priority to the Company and its franchisees. I trust that the Company had done everything it can in taking all appropriate measures to keep people safe whilst ensuring continuity of our operations. 

 

The Company continues to monitor the impact of the pandemic and will assist all stakeholders to address the effects and possible actions actively. The Company continues to keep its overhead low to maintain the business liquidity and stay resilient in the strange times where the future remains uncertain for at least until end of 2022.

 

The board would like to thank all the stakeholders of the Company for their continued support.

 

 

 

 

 

 

 

Abd Hadi Bin Abd Majid

Chairman

15 September 2022

 

 

 

 

 

 

 

 

Directors Statement

For the reporting period under review, the Company reported a net profit of £54,846. At 30 June 2022, the Company had cash in bank of £242,849.

 

There are a number of potential risks and uncertainties which may have material impact on the Company's performance over the remaining six months of the financial year and could cause actual results to differ materially from expected and historical results. The directors do not consider any changes on the principal risks and uncertainties since the publication of the annual report for the year ended 31 December 2021, which contained a detailed explanation of the risks relevant to the Company, is also available at http://www.davictus.co.uk .

The Board looks forward to providing further updates to the shareholders in due course.

 

 

Responsibility Statement

 

The Directors are responsible for preparing the Condensed 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).

The directors confirm that, to the best of their knowledge, this condensed consolidated interim financial statement have been prepared in accordance with IAS 34, as adopted by the European Union. The interim management report includes 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 condensed set of 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.

 

 

 

 

 

….

Director

15 September, 2022

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2022

 

 


Notes

6 months period ended

 

6 months period ended

 


30-Jun-22

 

30-Jun-21

 


 

 

 

 


 (Unaudited)

 

 (Unaudited)

 


 

 

 

 





Revenue

3

150,000


75,000






Cost of sales


 -

 

-

 





Gross profit

 

150,000

 

75,000

 





Operating expenses


(85,995)


(79,635)






Operating Profit / Loss

 

64,005

 

(4,635)

 





Other income


-


1,066






Gain on foreign exchange


-

 

1,249






Interest income


-

 

8






Finance expenses


-


(3,092)

 

 

 

 

 

Profit / Loss before taxation

 

64,005

 

(5,404)

 





Tax expense

4

-

 

-

 

PROFIT / LOSS FOR THE YEAR

ATTRIBUTABLE TO EQUITY SHAREHOLDERS

 

64,005

 

(5,404)

OTHER COMPREHENSIVE INCOME

Loss on disposal of investment

 

 

 

(9,159)

 

 

-

TOTAL COMPREHENSIVE PROFIT FOR THE YEAR

 

 

54,846

 

(5,404)

 





Basic and diluted loss per share (pence)

5

 0.04 p

 

(0.04) p

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2022



As at

 

As at

 

As at

 


30-Jun-22

30-Jun-21

31-12-21

 

 






Notes

(Unaudited)

 

(Unaudited)

 

Audited

 


£

 

£

 

£

 







Non-current assets

 






Right-of-use asset

7

45,633


76,056


60,844



45,633

 

76,056

 

60,844

 







Current assets

 






Trade receivables


-


82,500


47,461

Other receivables


 9,566


14,490


-

Cash and cash equivalents


242,849


45,523


96,624



252,415

 

142,513

 

144,085

 


 

 

 

 

 

Total assets

 

298,048

 

218,569

 

204,929



 

 

 

 


Equity attributable to equity holders of the company

 






Share capital

8

1,224,400


1,224,400


1,224,400

Accumulated losses


(1,173,258)


(1,224,564)


(1,237,270)

Total equity

 

51,142

 

(164)

 

(12,870)

 







Non-current liabilities

 






Lease liabilities


32,420


47,766


30,176



32,420

 

47,766

 

30,176

 







Current liabilities

 






Other payables

9

(5,350)


134,258


18,537

Deferred Income


204,167

-

136,666

Amount owing to directors 

  318


  7,568

 

-

Lease liabilities


15,351


  29,141


32,420



214,486

 

170,967

 

187,623

 


 

 

 

 

 

Total equity and liabilities

 

298,048

 

218,569

 

204,929

 

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW

FOR THE SIX MONTHS ENDED 30 JUNE 2022

 


As at

 

As at

 

30-Jun-22

 

30-Jun-21

 





(Unaudited)

 

(Unaudited)

 

£

 

£

Cash flow from operating activities

 

Operating Profit /(Loss)

54,846


(5,404)

Adjustment for:




Gain on disposal of lease 

-

 

(1,066)

Loss on disposal of investment

9,159

 

-

Depreciation of right-of-use-assets

15,211


15,211

Interest on lease liabilities

1,976


2,446


81,192


11,187

Changes in working capital

 


Decrease / (increase) in receivables

37,895


(61,140)

Increase / (decrease) in other payables

43,613


48,674

Increase / (decrease) in amount due to directors

318


7,568

Net cash flow used in operating activities

81,826

 

(4,898)

 








Cash flows from financing activities

 

Proceed from issuance of shares

-


36,000

Proceed from disposal of investment

8


-

Repayment on lease liability

(16,801)


(16,806)

Net cash generated from financing activities

(16,793)

 

19,194

 

 

 

 

 

 

 

 

Net increase in cash and cash equivalents

146,225

 

25,483

Cash and cash equivalents at beginning of period

96,624


20,040

Cash and cash equivalents at end of period

242,849

 

45,523

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENT CHANGES OF EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2022

Period from 1 January 2022 to 30 June 2022

 


Stated capital

 

Accumulated losses

 

Total

 

£

 

£

 

£

As at 1 January 2022

1,224,400

 

(1,237,270)

 

(12,870)

Profit for the period

-


54,846


54,846

Total comprehensive profit for the period

-


54,846


54,846

Accumulated Loss of subsidiary disposed during the year

-


(9,166)


9,159

As at 30 June 2022

1,224,400

 

(1,173,258)

 

51,142

 

 

Period from 1 January 2021 to 30 June 2021

 


Stated capital

 

Accumulated losses

 

Total

 

£

 

£

 

£

As at 1 January 2021

1,224,400

 

(1,219,160)

 

5,240

Loss for the period

-


(5,404)


(5,404)

Total comprehensive loss for the period

-


(5,404)


(5,404)

As at 30 June 2021

1,224,400

 

(1,224,564)

 

(164)

 

 

For the year ended 31 December 2021

 

 


Stated capital

 

Accumulated losses

 

Total

 

£

 

£

 

£

As at 1 January 2021

1,188,400

 

(1,219,159)

 

(30,759)

Proceeds from issuance of ordinary shares

36,000

 

-

 

36,000

Loss for the period

-


(18,111)


(18,111)

Total comprehensive loss for the period

36,000


(18,111)


17,889

As at 31 December 2021

1,224,400

 

(1,237,270)

 

(12,870)

 

 

 

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR SIX MONTHS ENDED 30 JUNE 2022

1.  GENERAL INFORMATION

 

The Company was incorporated and registered in Jersey as a public company limited by shares on 5 February 2015 under the companies (Jersey) Law 1991 and registered number 117716. The registered office of the Company is at the offices of 28 Esplanade, St. Helier, Jersey, JE1 8SB.

 

On 15 March 2020, the Company acquired a dormant British Virgin Island incorporated company as a wholly owned subsidiary for purpose of business operation (together in this financial report referred as the 'Group').

 

 

2.  ACCOUNTING POLICIES

 

Basis of preparation

 

The interim financial statements for the six-month period ended 30 June 2022 have been prepared in accordance with IAS 34 Interim Financial Reporting. It is unaudited and does not constitute statutory financial statements. The comparative interim financial information covers the period ended 30 June 2021.

 

The interim financial statements have been prepared on a basis consistent with, and on the basis of, the accounting policies set out in the audited financial statements of the Group for the year ended 31 December 2022, which have been prepared in accordance with International Financial Reporting Standards as adopted by the United Kingdom.

 

The interim financial information is presented in British Pound Sterling ("£").

 

New standards and interpretations

 

A number of new standards and amendments to standards and interpretations have been issued by International Accounting Standards Board but are not yet effective and in some cases have not yet been adopted by the EU. The Directors do not expect that the adoption of these standards will have a material impact on the financial statements of the Group in future periods.

 

Basis of consolidation

 

The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries). Control is achieved where the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

 

All intercompany transactions, balances, income and expenses are eliminated in consolidation.

 



 

 

Going concern

 

The condensed interim financial statements have been prepared on a going concern basis, which assumes that the Group will continue to be able to meet its liabilities as they fall due for the foreseeable future.

 

The Covid-19 pandemic has been unprecedented in scale and impact, and the Group have taken swift and decisive action to protect our customers, colleagues, franchisees and their staff and the communities in which the Group operates, by implementing the necessary steps to safeguard the business through the crisis, in line with the government guidelines.

 

The significant impact of Covid-19 to the Group business is summarised below:

 

· Delay in franchisee restaurant engagement. - Due to MCO (movement control order) announced by Malaysian Government, the launch the new franchise restaurants was being delayed

· Working capital inflow of fund are lagging behind initial plan. The Group has arranged additional short-term financing from directors if required to support continuity of business operations

· This might impact the business revenue of franchisees, and reduce the royalty payment that is by percentage of gross revenue sales.

 

Based on the current working capital forecast, the Group is unlikely to need additional funds within twelve months of the date of approval of these financial report in order to maintain its proposed work levels and to continue successfully managing its cash resources. After making enquiries and considering the assumptions upon which the forecasts have been based, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

 

Revenue recognition

 

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured, regardless of when the payment is made. Revenue is measured at the fair value of consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duty.

 

Fees receivable from franchisee according to franchise agreement at which time the Group has performed its obligation. Fees receivable in advance are stated on the Consolidated Statement of Financial Position as deferred income.

 

Leases

 

The Group assesses whether a contract is or contains a lease, at the inception of the contract. The Group recognises a right-of-use asset and corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for low-value assets and short-term leases with 12 months or less. For these leases, the Group recognises the lease payments as an operating expense on a straight-line method over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed.

 

 

The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use assets and the associated lease liabilities are presented as a separate line item in the statement of financial position.

 

The right-of-use asset is initially measured at cost. Cost includes the initial amount of the corresponding lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred, less any incentives received.

 

The right-of-use asset is subsequently measured at cost less accumulated depreciation and any impairment losses, and adjustment for any remeasurement of the lease liability. The depreciation starts from the commencement date of the lease. If the lease transfers ownership of the underlying asset to the Group or the cost of the right-of-use asset reflects that the Group expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. Otherwise, the Group depreciates the right-of-use asset to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.

 

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate.

 

The lease liability is subsequently measured at amortised cost using the effective interest method. It is remeasured when there is a change in the future lease payments (other than lease modification that is not accounted for as a separate lease) with the corresponding adjustment is made to the carrying amount of the right-of-use asset or is recognised in profit or loss if the carrying amount has been reduced to zero.

 

3.  REVENUE

 

The Group revenue are derived from franchise related fees including brand licence, management fee and royalties according to Restaurant Franchise Agreement. For the reporting period, revenue contributions are from a franchisee located in Kuala Lumpur, Malaysia and Bangkok Thailand.

 

There are no seasonal factors that materially affect the operations of the Group.

 

 

4.  INCOME TAX EXPENSE

 

The Company is not a "Financial Services Company" registered under the relevant Jersey laws; or a specified utility company and therefore it is subject to Jersey income tax at the general rate of 0 per cent. If the Company derives any income from Jersey property, including development of land or quarrying, such income will be subject to tax at the rate of 20 per cent. It is not expected that the Company will derive any such income.

 

 



 

 

5.  PROFIT / (LOSS) PER SHARE

 

Basic profit / (loss) 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.

 


6 months period ended

6 months period ended

 

30-Jun-22

30-Jun-21

 

 

 

Profit / Loss for the period

54,846

(5,404)

Weighted average number of shares (Unit)

13,350,000

12,216,298

Profit / (Loss) per share (pence)

0.41 p

(0.04) p

 

 

6.  INTANGIBLE ASSETS

 

Intangible assets refers to intellectual property rights in restaurant concept brand of HAVANA Rolled Cigar Music Café including their recipes and collection of Cuban/Havana graphics acquired at the cost of £100,000 from Typical Dutch N.V.

 

The asset acquired has indefinite useful life and will be reviewed for impairment annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.

 

 

7.  RIGHT-OF-USE ASSETS

 

The Company has entered into a non-cancellable operating lease agreement for tenancy of office space. The lease is for a period of 36 months operating lease agreement commencing 1 January 2021 with an option to renew the lease for a further 12 months.

 


£

Cost

91,266

Accumulated depreciation

(45,633)

As at 30 June 2022

45,633

 



 

 

8.  STATED CAPITAL

 





Number of ordinary shares

 

£

 







As at 1 January 2022



13,350,000


1,224,400








As at 30 June 2022



13,350,000


1,224,400

 

 

9.  OTHER PAYABLES

 



6 months

period ended

 

6 months

period ended

 


30-Jun-22

 

30-Jun-21



£

 

£

Other Creditors


(5,350)


34,852

Deferred Income


204,167


76,667

Amount owing to Director


318


-

Lease Liability


15,351


-

Accruals and Provision


-


22,739



214,486


134,258

 

 

10. LEASE LIABILITIES

 


6 months period ended

 

6 months period ended

 

30-Jun-22

 

30-Jun-21

 

£

 

£

 




As at 1 January

67,203


48,119

Addition during the year

-

 

100,805

De-recognition of lease due to termination

-

 

(48,119)

Interest in suspense

(4,670)


(9,538)

Interest expensed

1,976


2,446

Repayment of principal

(16,801)


(16,806)


50,402


76,907

 

  Lease liabilities are payable as follow:

Within 1 year

16,800

Between 2- 5 years

33,602

 

 

 

 

 

 

 

11. RELATED PARTY TRANSACTION

 

The directors are considered to be the key management personnel. Details concerning Directors' remuneration can be found below:

 


6 months period ended 30-Jun-22

 

6 months period ended 30-Jun-21


£

 

£

Robert Pincock

7,500

 

7,500

Abd Hadi Bin Abd Majid

5,000

 

5,000

Maurice James Malcolm Groat

2,000

 

2,000


14,500

 

14,500

 

 

12. SUBSEQUENT EVENTS

 

There were no subsequent events after the reporting period.

 

 

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