Half-year Report for the 6 months ended 30 Sep 17

RNS Number : 0368A
Orient Telecoms PLC
21 December 2017
 

ORIENT TELECOMS PLC

 

INTERIM FINANCIAL STATEMENTS

 

For the six months ended 30 September 2017

 

 

Director's Statement

 

I have pleasure in presenting the interim financial statements of Orient Telecoms plc (the "Company") for the period from 1 April 2017 to 30 September 2017.

 

During the financial period, the Company reported a net loss of £62,141 (£1.24 per share).

 

On 25 October, 2017, the Company was successfully admitted to the Official List (by way of a Standard Listing) and to trading on the London Stock Exchange's main market for listed securities.

 

Since the listing of the company, we have been extensively working on the marketing and sales related activities in the region. A number of potential clients have been engaged and have expressed their interest in the company's products and services. We anticipate in the next month to put together the forecast and the business plan for year 2018.

 

 

Responsibility Statement

 

The Directors are responsible for preparing the Condensed 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 report has been prepared in accordance with IAS 34 as adopted by the European Union. The interim 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.

 

  

 

Mark Pincock

Director

 

21 December 2017

 

 

 

                       CONDENSED STATEMENT OF COMPREHESIVE INCOME

                       FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2017

 

 

 

6 months period ended 30 September 2017

 

Period from

26 February 2016 to

30 September 2016

 

Notes

 

£

 

£

 

 

 

(Unaudited)

 

(Unaudited)

 

 

 

 

 

 

INCOME

 

 

-

 

-

 

 

 

-

 

-

Other operating expenses

 

 

(62,141)

 

(104,000)

OPERATING LOSS/LOSS BEFORE TAXATION

 

 

(62,141)

 

(104,000)

Income tax expense

 

 

-

 

-

LOSS FOR THE PERIOD ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY

 

 

(62,141)

 

(104,000)

OTHER COMPREHENSIVE INCOME

 

 

 

 

 

Other comprehensive income

 

 

-

 

-

 

 

 

 

 

 

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

 

 

(62,141)

 

(104,000)

 

 

 

 

 

 

Basic and diluted loss per share (₤)

4

 

(1.24)

 

(2.08)

 

 

 

 

 

 

 

 

 

 

                        CONDENSED STATEMENT OF FINANCIAL POSITION

                        AS AT 30 SEPTEMBER 2017

 

 

 

As at

30 September

2017

 

As at

31 March

2017

 

 

Notes

 

£

 

£

 

 

 

 

(Unaudited)

 

(Audited)

 

CURRENT ASSETS

 

 

 

 

 

 

Other receivables

 

 

2,500

 

2,500

 

 

 

 

2,500

 

2,500

 

CURRENT LIABILITIES

 

 

 

 

 

 

Other payables

5

 

233,141

 

161,000

 

 

 

 

 

 

 

 

NET LIABILITIES

 

 

(220,641)

 

(158,500)

 

 

 

 

 

 

 

 

EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY

 

 

 

 

 

 

Share capital

Retained earnings

6

 

 

12,500

(233,141)

 

12,500

(171,000)

 

TOTAL EQUITY

 

 

(220,641)

 

(158,500)

 

 

 

 

 

 

 

 

 

                        CONDENSED STATEMENT OF CASH FLOWS

                        FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2017

 

 

 

6 months period ended

30 September 2017

 

Period from 26 February 2016 (inception) to 30 September 2016

 

Notes

 

£

 

£

 

 

 

(Unaudited)

 

(Unaudited)

Cash flow from operating activities

 

 

 

 

 

Operating loss

 

 

(62,141)

 

(104,000)

Changes in working capital

Other receivables

Other payables

 

 

 

-

62,141

 

 

-

91,500

 

 

 

 

 

 

Net cash flow from operating activities

 

 

-

 

(12,500)

 

 

 

 

 

 

Cash flow from financing activities

 

 

 

 

 

Issue of share capital

 

 

-

 

12,500

Net cash flow from financing activities

 

 

-

 

12,500

 

 

 

 

 

 

Net increase in cash and cash equivalents

 

 

-

 

-

Cash and cash equivalents at beginning of period

 

 

-

 

-

Cash and cash equivalents at end of period

 

 

-

 

-

 

 

 

 

 

 

 

 

CONDENSED STATEMENT OF CHANGES IN EQUITY

 

 

Period from 1 April 2017 to 30 September 2017 (unaudited)

 

Share capital

 

Retained earnings

 

Total

 

£

 

£

 

£

As at 1 April 2017

12,500

 

(171,000)

 

(158,500)

Loss for the period

-

 

(62,141)

 

(62,141)

Total comprehensive loss for the period

-

 

(233,141)

 

(220,641)

 

 

 

 

 

 

As at 30 September 2017

12,500

 

(214,000)

 

(220,641)

 

Period from 26 February 2016 (inception) to 30 September 2016 (unaudited)

 

Share capital

 

Retained earnings

 

Total

 

£

 

£

 

£

Loss for the period

-

 

(104,000)

 

(104,000)

Total comprehensive loss for the period

-

 

(104,000)

 

(104,000)

Shares issued on incorporation

12,500

 

-

 

12,500

As at 30 September 2016

12,500

 

(104,000)

 

(91,500)

 

 

Period from 26 February 2016 (inception) to 31 March 2017 (audited)

 

Share capital

 

Retained earnings

 

Total

 

£

 

£

 

£

Loss for the period

-

 

(171,000)

 

(171,000)

Total comprehensive loss for the period

-

 

(171,000)

 

(171,000)

Shares issued on incorporation

12,500

 

-

 

12,500

As at 31 March 2017

   12,500

 

(171,000)

 

(158,500)

 

 

 

 

 

 

NOTES TO THE INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED TO 30 SEPTEMBER 2017

 

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 the offices of London Registrar, Suite A, 6 Honduras St, London EC1Y 0TH United Kingdom.

 

The Company was admitted to the Official List (by way of a Standard Listing) and to trading on the London Stock Exchange's main market for listed securities on 25 October, 2017.

 

 

2.   ACCOUNTING POLICIES

 

Basis of preparation

 

The condensed financial information for the period ended 30 September 2017 and 30 September 2016 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 comparative interim financial information covers the period from incorporation on 26 February 2016 to 30 September 2016.

 

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 period ended 31 March 2017, which have been prepared in accordance with International Financial Reporting Standards as adopted by the EU ("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 but did contain an emphasis of matters paragraph in respect of the going concern.

 

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

 

The interim financial statements for the six months ended 30 September 2017 was approved by the Directors on 20 December 2017.

 

Going concern

 

These interim financial statements have been prepared on a going concern basis notwithstanding the existence of the net current liabilities and shareholder's deficits position at the end of reporting period.

 

Subsequent to the reporting year end, the Company raised approximately £769,860 of net new finance following its admission on the Main Market of London Stock Exchange. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence. For this reason, they continue to adopt the going concern basis in preparing the interim financial statements.

 

 

 

 

 

 

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 2017 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 2017.

 

 

4.   LOSS PER SHARE

 

Basic 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.

 

Loss per share attributed to ordinary shareholders

 

 

6 months

period ended

30 September 2017

Period from

26 February 2016 (inception) to

30 September 2016

Earnings (£)

(62,141)

(104,000)

Weighted average number of shares (Unit)

50,000

50,000

Per-share amount (£)

(1.24)

(2.08)

 

 

5.   OTHER PAYABLES

 

 

As at

30 September 2017

 

As at

31 March 2017

 

£

 

£

 

 

 

 

Amount due to holding company

120,000

 

107,500

Accruals

29,800

 

34,000

Other payables

73,341

 

19,000

 

223,141

 

161,000

 

 

 

 

 

6.   SHARE CAPITAL

 

Ordinary shares of ₤1 each

 

As at

30 September 2017

£

As at

31 March 2017

£

Paid up:

50,000 ordinary shares at ₤0.25 each

 

12,500

 

12,500

 

On 26 February 2016, the Directors approved the issue of 50,000 ordinary shares in the Company to Orient Managed Services Limited for £1 each, of which £12,500 have been paid and called up. The remaining £37,500, have not been called up at 31 March 2017, were fully paid upon listing of the Company's shares on London Stock Exchange on 25 October 2017.

 

 

7.   SEASONAL OR CYCLICAL FACTORS

 

There are no seasonal factors that materially affect the Company's operation.

 

 

8.   RELATED PARTY TRANSACTIONS

 

In 2016 the company entered into an agreement with a third party which provides consultancy service agreement in relation to the listing exercise of the Company. During the period the Company did not enter into any material transactions with related parties.

 

 

As at

30 September 2017

As at

31 March 2017

 

£

£

Holding Company

 

 

Orient Managed Services Limited

120,000

107,500

 

 

9.   SUBSEQUENT EVENT

 

The Company was admitted to the Official List (by way of a Standard Listing) and to trading on the London Stock Exchange's main market for listed securities on 25 October 2017.

 

Upon Admission the share capital of the Company was increased from £12,500 to £1,000,000.

The existing 50,000 shares of £1.00 each was converted to 500,000 shares of £0.10 each and balance of £37,500 being fully paid. 500,000 new shares of £50,000 were issued concurrently to the existing shareholder by conversion of payable amount.

 

On admission, 9,000,000 shares of £0.10 each were issued and fully paid. From listing total proceed of £900,000, the Company received net proceed of £769,860, after deduction of listing and broker cost.


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