Half-year Report

RNS Number : 2275W
Orient Telecoms PLC
09 December 2019
 

 

 

 

 

 

ORIENT TELECOMS PLC

 

INTERIM FINANCIAL STATEMENTS

 

For the six months ended 30 September 2019

 

 

 

Director's statements

 

I have pleasure in presenting the interim financial statements of Orient Telecoms plc (the “Group”) for the period from 1 April 2019 to 30 September 2019.

 

During the financial period, the Company reported a net loss of £32,990  (£0.003 loss per share).

 

Since the listing of the company, we have been extensively working on the marketing and sales related activities in the region.

 

The good news is that, we have started to seal the potential opportunities starting mid-2019 and so far we have achieved satisfactory results as forecasted. Thus far company has successfully signed more than 15 deals including some of the very high-profile customers in Malaysia.

 

We are continuously working to establish the Orient Telecoms brand and our business consultants are successfully able to create the awareness in the target market. As a part of not only creating brand awareness but also to attract more subject matter experts from the industry, the company had organised a number of Technology Seminars on disrupting technologies. These events helped the company to gain more attention of the target audiences from various business sectors.

 

The objective for 2020 will not only be the higher revenues and profits, but also to increase the partnerships in region and look for regional business opportunities. This is to plot a path forward for the company to achieve its initial vision of becoming the regional virtual telco without investing into building the physical network infrastructure.

 

The company shall continue to invest on its marketing and awareness initiative to ensure the forecasted results are achieved. On 25th October 2019, Mr. Mark Pincock resigned as company director.

 

Responsibility Statement

 

The Directors are responsible for preparing the 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) as adopted by European Union.

The Directors confirm that, to the best of their knowledge, the interim financial statements have been prepared in accordance with IAS 34 as adopted by the European Union. The interim financial statements include 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 interim 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.

 

Sayed Mustafa Ali

9 December 2019

 

CONDENSED CONSOLIDATED STATEMENT OF COMPREHESIVE INCOME

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2019

 

 

 

 

6 months period ended 30 September

2019

 

6 months period ended 30 September

2018

 

Notes

£

 

£

 

 

(Unaudited)

 

(Unaudited)

 

INCOME

 

4

 

266,445

 

 

39,867

COST OF SALES

 

(87,293)

 

-

GROSS PROFIT

 

179,152

 

39,867

Other operating expenses

 

(212,142)

 

(164,065)

OPERATING LOSS/LOSS BEFORE TAXATION

 

(32,990)

 

(124,198)

Income tax expense

 

-

 

-

LOSS FOR THE PERIOD ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY

 

(32,990)

 

(124,198)

OTHER COMPREHENSIVE INCOME

 

 

 

 

Items that will or may be reclassified to profit or loss:

 

 

 

 

Translation of foreign operation

 

7,439

 

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

 

(25,551)

 

(124,198)

 

 

Basic and diluted loss per share (₤)

 

 

5

 

 

          (0.003)    

 

 

 

(0.012)

 

 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2019

 

 

 

As at

30 September

2019

 

As at 31 March

2019

 

Notes

£

 

£

 

 

(Unaudited)

 

(Audited)

CURRENT ASSETS

 

 

 

 

Bank

6

397,474

 

529,278

Trade and other receivables

7

94,296

 

230,011

 

 

491,770

 

759,289

CURRENT LIABILITIES

 

 

 

 

Trade and other payables

8

118,551

 

360,519

 

 

118,551

 

360,519

 

 

 

 

 

NET ASSETS

 

373,219

 

398,770

 

 

EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY

Share capital

9

1,000,000

 

1,000,000

Translation reserve

 

(4,282)

 

(11,721)

Accumulated losses

 

(622,499)

 

(589,509)

TOTAL EQUITY

 

373,219

 

398,770

 

 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

 FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2019

 

 

 

 

6 months period ended 30 September

2019

 

6 months period ended 30 September

2018

Notes

£

 

£

 

(Unaudited)

 

(Unaudited)

Cash flow from operating activities

 

 

 

Operating loss

(32,990)

 

(124,198)

Changes in working capital

 

 

 

Trade receivables

(78,137)

 

(109,538)

Other receivables

213,852

 

(500,000)

Trade and other payables

(241,644)

 

93,377

 

(105,929)

 

(516,161)

 

 

 

 

Net cash flow used in operating activities

(138,919)

 

(640,359)

 

Net decrease in cash and cash equivalents

 

(138,919)

 

 

(640,359)

Cash and cash equivalents at beginning of period

529,278

 

751,387

Effect of exchange rate fluctuations on cash held

7,115

 

-

Cash and cash equivalents at end of period

397,474

 

111,028

 

 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Period from 1 April 2019 to 30 September 2019 (unaudited)

 

 

 

Share capital

 

Translation reserve

 

Accumulated losses

 

Total

 

£

 

£

 

£

 

£

As at 1 April 2019

1,000,000

 

(11,721)

 

(589,509)

 

398,770

Loss for the period

 

Translation of foreign operation

-

 

          -         

 

-


        7,439      

 

(32,990)

 

                    -    

 

(32,990)

 

             7,439

Total comprehensive loss for the period

-

 

7,439

 

(32,990)

 

(25,551)

                        

As at 30 September 2019

1,000,000

 

(4,282)

 

(622,499)

 

373,219

 

 

 

Period from 1 April 2018 to 30 September 2018 (unaudited)

 

 

 

 

 

 

Share capital

 

Accumulated losses

 

Total

 

£

 

£

 

£

As at 1 April 2018

1,000,000

 

(356,783)

 

643,217

Loss for the period

-

 

(124,198)

 

(124,198)

Total comprehensive loss for the period

-

 

(124,198)

 

(124,198)

 

 

 

 

 

 

As at 30 September 2018

1,000,000

 

(480,981)

 

519,019

 

 

Period from 1 April 2018 to 31 March 2019 (audited)

 

 

Share capital

 

Translation reserve

 

Accumulated losses

 

Total

 

£

 

£

 

£

 

£

As at 1 April 2018

1,000,000

 

-

 

(376,529)

 

623,471

Loss for the period

 

Translation of foreign operation

-

 

          -         

 

-

 

       (11,721)     

 

      (212,980)

 

                    -    

 

(212,980)

 

         (11,721)

Total comprehensive loss for the year

-

 

(11,721)

 

(212,980)

 

(224,701)

 

As at 31 March 2019

1,000,000

 

(11,721)

 

(589,509)

 

(398,770)

NOTES TO THE INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED TO 30 SEPTEMBER 2019

 

 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 2019 and 30 September 2018 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 1 April 2018 to 30 September 2018.

 

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 year ended 31 March 2019, which have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union ("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 and unmodified.

 

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

 

The interim financial statements for the six months ended 30 September 2019 was approved by the Directors on 9 December 2019.

 

Going concern

 

These interim financial statements have been prepared on a going concern basis.

The Board's review of the accounts, budgets and financial plan leads the directors to believe that the Company has sufficient resources to continue operation for the foreseeable future. The financial accounts are therefore prepared on a going concern basis.

 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 2019 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 2019.

 

 4.   REVENUE

 

Revenue represents the fair value of the consideration received or receivables for communication services. Revenue is recognised when it is probable that the economic benefits associated with a transaction will flow to the Company and the amount of revenue and associated costs can be measured reliably and over the period to which the charges relate.

 

The Company receives payment for services from channel partner who onwardly sell to end users. The channel partner is treated as the principal in that transaction because the channel partner has the primary responsibility for providing the services to the end user; the channel partner is free to establish its own prices with or without bundling with other goods or services which are not supplied by the Company; and the channel partner bears the credit risk for the amount receivable from the end user. The Company therefore recognises revenue based on the transactions with the channel partner and not the end user.

 

All revenue derived from Malaysia. Revenue excludes value added tax and other sales taxes.

 

5.   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

2019

6 months period ended 30 September

2018

Loss for the period (£)

(32,990)

(124,198)

Weighted average number of shares (Unit)

10,000,000

10,000,000

Basic and diluted loss per share (£)

(0.003)

(0.012)

 6.   BANK

 

Cash and Cash equivalents are denominated in the following currencies:

 

 

As at

30 September 2019

As at

31 March 2019

 

£

£

Great Britain Pound

18,120

18,975

Singapore Dollar

19,514

19,514

United States Dollar Malaysia Ringgit

26,667

          333,173        

26,667

         464,122       

 

397,474

529,278

                                                                                                                                              

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7.   TRADE AND OTHER RECEIVABLES

 

 

As at

30 September 2019

 

As at

31 March 2019

 

£

 

£

Trade receivables

94,296

 

16,159

Deposit

-

 

938

Other receivables

-

 

212,914

 

94,296

 

230,011

 

 8.   TRADE AND OTHER PAYABLES

 

 

As at

30 September 2019

 

As at

31 March 2019

 

£

 

£

Amount due to related companies

89,674

 

302,588

Accruals

28,877

 

55,431

Other payables

-

 

2,500

 

118,551

 

360,519

 

 9.   SHARE CAPITAL

 

Ordinary shares of ₤1 each

 

As at

30 September 2019

£

As at

31 March 2019

£

Paid up:

10,000,000 ordinary shares at ₤0.10 each

 

1,000,000

 

1,000,000

 

At 31 March 2019 and 30 September 2019, the total issued ordinary share of the Company were 10,000,000.

10. SEASONAL OR CYCLICAL FACTORS

 

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

 

11. RELATED PARTY TRANSACTIONS

 

In 2017 the company entered into an agreement with a third party which provides consultancy service agreement in relation to the listing exercise of the Company. Orient Management Services Limited is jointly owned by Mark Pincock and Sayed Mustafa Ali, directors of the Company.

 

 

 

As at

30 September 2019

As at

31 March 2019

 

£

£

Related Party

 

 

Orient Managed Services Limited

(44,391)

(44,391)

 

The amount due to related party is interest-free and they are payable on demand.

 

 

6 months period ended

30 September 2019

6 months period ended

30 September 2018

 

£

£

Transaction with Orient Telecoms Sdn Bhd

 

 

-     Commission income

-

39,867

 

At 30 September

2019

At 31 March

2019

Amount due from/(to) Orient Telecoms Sdn Bhd

 

 

-     Amount due from related party

-

212,914

-     Amount due to related party

         (45,283)       

        (258,197)         

 

          (45,283)       

          (45,283)         

 

Sayed Mustafa Ali is a director of both, the Company and Orient Telecoms Sdn Bhd

 

12. SUBSEQUENT EVENT

There were no subsequent events after the reporting period.


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.
 
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