INTERIM FINANCIAL STATEMENTS ENDED 30 SEP 2022

RNS Number : 1493H

Orient Telecoms PLC

22 November 2022

 

ORIENT TELECOMS PLC

INTERIM CONDENSED FINANCIAL STATEMENTS

For the six months period ended

30 September 2022

CHAIRMAN'S STATEMENTS

I have pleasure in presenting the interim financial statements of Orient Telecoms Plc and its subsidiary undertaking (the "Group") for the six months ended 30 September 2022.

During the financial period, the Group reported a net loss of £30,681 (0.31 pence loss per share).

The Group operates as a fully managed overlay network service provider in the South East Asia Region, which significantly reduces the need for heavy investment towards building its own network infrastructure compared to other traditional telecommunication companies. In the past six (6) months, the company has seen a lot of excitement about the present and future roll out the 5G infra structure and services throughout the region by almost all cellular telecommunication operators. Accordingly, the Board believes that there may be business opportunities for the Company to expand its managed services products in line with the greater adoption of 5G network infrastructure.

There has been an increasing demand for larger bandwidth by these cellular operators for bandwidth hungry applications. This opens up opportunities for the Company to offer fully managed solutions which can ensure any cellular operators or businesses are focused on their respective core businesses while the Group (as a managed service provider) can take care of their respective connectivity and IT needs. The Group is focused on promoting and enhancing its managed services portfolio in the South East Asia region.

The Group has been continuously working to enhance its product and managed services offerings while its technology team focused on creating a customised operating system which will help manage the services for customers in a more efficient and productive manner.

The Group has also started exploring Artificial Intelligence (AI) driven applications as additional service offering to its current managed services. The Group has also initiated discussions with some potential partners for its intended AI development projects.

During the reporting period the Group remained focus on its marketing drive including on digital marketing initiatives, as well as increasing the number of sales personnel to reach out to as many customers as possible.

Operations teams remains committed in delivering services based on customer's requirements while maintaining support to its customers to ensure the quality of service offered meets customer's expectations.

Based on its current and forecasted performance the Group foresees a meaningful financial year ending in March 2023.

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 the United Kingdom.

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 United Kingdom. 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 period; 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

Director

                     CONDENSED CONSOLIDATED STATEMENT OF COMPREHESIVE INCOME 

                     FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022 

			6 months period ended		6 months period ended
			30-Sep-22		30-Sep-21
	Notes		£		£
			(Unaudited)		(Unaudited)
INCOME	4		188,039		404,614
DIRECT COST			(25,081)		(122,205)
GROSS PROFIT			162,958		282,409
Administrative expenses			(186,481)		(236,586)
OPERATING (LOSS)/PROFIT			(23,523)		45,823
Other income			1,637		2,368
Finance income			708		292
Finance cost			(9,503)		(3,679)
OPERATING (LOSS)/PROFIT BEFORE TAXATION			(30,681)		44,804
Income tax expense			-		-
(LOSS)/PROFIT FOR THE PERIOD ATTRIBUTABLE TO EQUITY HOLDERS			(30,681)		44,804
OTHER COMPREHENSIVE INCOME
Items that will or may be reclassified to profit or loss:
Translation of foreign operation			-		(17,653)
TOTAL COMPREHENSIVE (LOSS)/INCOME FOR THE PERIOD			(30,681)		27,151
Basic and diluted profit per share (pence)	5		(0.31)		0.45

                   CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 

                   AS AT 30 SEPTEMBER 2022

			As at		As at		As at
			30-Sep-22		31-Mar-22		30-Sep-21
			£		£		£
	Notes		(Unaudited)		(Audited)		(Unaudited)
ASSETS
NON-CURRENT ASSETS
Right-of-use assets	6		262,464		294,776		171,116
CURRENT ASSETS
Bank	7		425,066		466,623		458,844
Trade and other receivables	8		146,030		125,935		193,084
			571,096		592,558		651,928
CURRENT LIABILITIES
Trade and other payables	9		75,141		95,823		165,303
Lease liability	10		100,657		93,552		47,130
			175,798		189,375		212,433
NET ASSETS			657,762		697,959		610,611
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY
Share capital	11		1,000,000		1,000,000		1,000,000
Translation reserve			10,258		(16,737)		(41,366)
Accumulated losses			(517,209)		(486,528)		(476,443)
			493,049		496,735		482,191
NON- CURRENT LIABILITIES
Lease liabilities	10		164,713		201,224		128,420
			164,713		201,224		128,420
TOTAL EQUITY AND NON -CURRENT LIABILITIES			657,762		697,959		610,611

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS 

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022

		6 months period ended		6 months period ended
		30-Sep-22		30-Sep-21
		£		£
		(Unaudited)		(Unaudited)
Cash flow from operating activities
(Loss)/Profit before tax		(30,681)		44,804
Adjustment for:
Unrealised exchange loss		26,993		395
Depreciation of right-of-use-assets		52,493		49,594
Finance income		(708)		(292)
Interest on lease liabilities		8,393		3,679
		56,490		98,180
Changes in working capital
(Increase)/Decrease in trade and other receivables		(20,095)		113,371
Increase/(Decrease) in trade and other payables		(20,682)		(91,179)
Cash flow from operations		15,713		22,192
Interest received		708		292
Net cash flow generated from operating activities		16,421		120,664
Net cash flow generated from/(used in) operating activities
Interest paid		(8,393)		(3,679)
Repayment on lease liability		(49,585)		(48,176)
Net cash flow used in financing activities		(57,978)		(51,855)
Net movement in cash and cash equivalents		(41,557)		68,809
Cash and cash equivalents at beginning of period		466,623		391,783
Exchange gain on cash and cash equivalents		-		(1,748)
Cash and cash equivalents at end of period		425,066		458,844

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022

Period from 1 April 2022 to 30 September 2022 (Unaudited)

		Share capital		Translation reserve		Accumulated losses		Total
		£		£		£		£
As at 1 April 2022		1,000,000		(16,737)		(486,528)		496,735
Loss for the period		-		-		(30,681)		(30,681)
Translation of foreign operation		-		26,995		-		26,995
Total comprehensive income for the period		-		26,995		(30,681)		(3,686)
As at 30 September 2022		1,000,000		10,258		(517,209)		493,049

Period from 1 April 2021 to 30 September 2021 (Unaudited)

		Share capital		Translation reserve		Accumulated losses		Total
		£		£		£		£
As at 1 April 2021		1,000,000		(23,713)		(521,247)		455,040
Profit for the year		-		-		44,804		44,804
Translation of foreign operation		-		(17,653)		-		(17,653)
Total comprehensive income for the year		-		(17,653)		44,804		27,151
As at 30 September 2021		1,000,000		(41,366)		(476,442)		482,191

Period from 1 April 2021 to 31 March 2022 (Audited)

		Share capital		Translation reserve		Accumulated losses		Total
		£		£		£		£
As at 1 April 2021		1,000,000		(23,713)		(521,247)		455,040
Profit for the year		-		-		34,719		34,719
Translation of foreign operation		-		6,976		-		6,976
Total comprehensive income for the year		-		6,976		34,719		41,695
As at 31 March 2022		1,000,000		(16,737)		(486,528)		496,735

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT 

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022 

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.

Shares of the Company are traded on London Stock Exchange's main market for listed securities since 2017.

2.  ACCOUNTING POLICIES

Basis of preparation

The consolidated financial information for the period ended 30 September 2022 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 2022 to 30 September 2022.

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 2021, which have been prepared in accordance with International Financial Reporting Standards as adopted by the United Kingdom ("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 ("£").

Going concern

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

The COVID-19 pandemic lock downs in Malaysia which was implemented in March 2020 have since been removed as the country have reached its targeted immunization and with the easing of restriction businesses are moving towards normalisation. Hence, the Board sees significant opening up more opportunities for businesses.

The Company is already in an active discussion with some of the potential clients to secure new business in the forthcoming year.

The Company has enough cash balances to run its operations for next 24 months even if there is no new business or Pandemic situation gets worsen. The Company also relies heavily on outsourcing companies to perform its international service maintenance which helps the company to manage its cashflows better and also keep the lowest possible headcount on the payroll.

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 2022 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 2022.

4.  REVENUE

Revenue represents the fair value of the consideration received or receivable 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.

		6 months period ended		6 months period ended
		30-Sep-22		30-Sep-21
Revenue		188,039		404,614
		188,039		404,614

Revenue is derived solely from Malaysia, Singapore and Thailand. Revenue excludes value added tax and other sales taxes.

5.  PROFIT PER SHARE

Basic profit 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.

Profit per share attributed to ordinary shareholders:

		6 months period ended		Year ended		6 months period ended
		30-Sep-22		31-Mar-22		30-Sep-21
(Loss)/Profit for the period (£)		(30,681)		34,719		44,804
Weighted average number of shares (Unit)		10,000,000		10,000,000		10,000,000
Basic and diluted profit per share (pence)		(0.31)		0.35		0.45

6.  RIGHT-OF-USE ASSETS

	6 months period ended		Year ended		6 months period ended
	30-Sep-22		31-Mar-22		30-Sep-21
	£		£		£
Cost
Balance at beginning of period	467,262		292,474		292,474
Addition during the period	-		167,304		-
Exchange difference	31,988		7,484		1,807
At end of period	499,250		467,262		294,281
Accumulated depreciation
Balance at beginning of period	172,486		73,118		73,119
Charges for the period	52,493		97,496		49,594
Exchange difference	-		1,872		452
Balance at end of period	236,786		172,486		123,165
Net book value	262,464		294,776		171,116

The Group subsidiary leased an office which the subsidiary has entered into a non-cancellable operating lease agreement. The lease is for a period of 60 months operating lease agreement with an option to renew the lease for a further 12 months.

7.  BANK

Cash and Cash equivalents are denominated in the following currencies:

		6 months period ended		Year ended		6 months period ended
		30-Sep-22		31-Mar-22		30-Sep-21
		£		£		£
Great Britain Pound		25,163		15,302		20,102
Singapore Dollar		21,391		19,249		18,230
United States Dollar		31,334		26,592		25,232
Malaysia Ringgit		347,178		405,480		395,280
		425,066		466,623		458,844

8.  TRADE AND OTHER RECEIVABLES

		6 months		Year		6 months
		period ended		ended		period ended
		30-Sep-22		31-Mar-22		30-Sep-21
		£		£		£
Trade receivables		73,263		21,478		117,636
Prepayment and Deposit		55,702		47,231		22,182
Other receivables		17,065		57,226		53,266
		146,030		125,935		193,084

9.  TRADE AND OTHER PAYABLES

	6 months		Year		6 months
	period ended		ended		period ended
	30-Sep-22		31-Mar-22		30-Sep-21
	£		£		£
Amount due to directors	3,185		3,051		2,990
Trade creditors	3,865		-		57,333
Accruals	21,339		33,487		34,523
Contract liability	-		8,136		25,049
Other payables	46,752		51,149		45,408
	75,141		95,823		165,303

10. LEASE LIABILITIES

Lease liabilities are payable as follow:

	6 months		Year		6 months
	period ended		ended		period ended
	30-Sep-22		31-Mar-22		30-Sep-21
	£		£		£
Less than one year	100,657		93,552		47,130
More than one year	164,713		201,224		128,420
	265,370		294,776		175,550

11. SHARE CAPITAL

		Number of		£
		ordinary shares
Paid up:
10,000,000 ordinary shares at ₤0.10 each		10,000,000		1,000,000

At 30 September 2022, the total issued ordinary share of the Company were 10,000,000.

12. SEASONAL OR CYCLICAL FACTORS

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

13. RELATED PARTY TRANSACTIONS

		6 months		6 months
		period ended		period ended
		30-Sep-22		30-Sep-21
		£		£
Amount due to directors
- Sayed Mustafa Ali		1,250		1,250
- Wong Chee Keong		1,935		1,740
		3,185		2,990

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

14. SUBSEQUENT EVENT

There were no subsequent events immediately after the reporting period.

*Ends*

  For more information:

Orient Telecoms plc
Sayed Mustafa Ali	[e-mail]

 About Orient Telecoms PLC

ORIENT is an information technology company that offers managed telecommunication services as its core business, which include managed services in machine to machine networking, solutions for internet of things (IOT), cyber security, big data solutions as well as full spectrum of other managed services.

 

END

 

 

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