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AIQ Limited (AIQ)

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Monday 25 February, 2019

AIQ Limited

Full Year Results and Publication of Annual Report

RNS Number : 9772Q
AIQ Limited
25 February 2019
 

25 February 2019

 

AIQ Limited

("AIQ" or the "Company")

 

Full Year Results and Publication of Annual Report

 

AIQ (LSE: AIQ), a special purpose acquisition company ("SPAC") formed to undertake one or more acquisitions of a company or business in the e-commerce sector, announces its results for the period from the incorporation of the Company on 11 October 2017 to 31 October 2018.

 

Summary

 

 

Graham Duncan, Chairman of AIQ, commented:

"I am pleased to present our first annual results following our listing in January 2018. We have been active in our search for acquisitions and continue to review a number of opportunities in the e-commerce, social media and artificial intelligence sectors, within the UK, Europe and Asia. During the year, we were also successful in raising further capital.

 

"On behalf of the Board, I would like to thank our shareholders for their support and we very much look forward to updating the market at the earliest opportunity regarding progress in our execution on our investment strategy. With the growth in the global e-commerce markets showing no signs of abating, and a strong balance sheet, we are well-positioned to execute on our targets and deliver shareholder value."

 

 

Enquiries

 

AIQ Limited

+44(0)754 900 5681

Graham Duncan, Chairman

 

 

 

VSA Capital Limited (Financial Adviser & Corporate Broker)

+44(0)20 3005 5000

Andrew Raca

 

 

 

Luther Pendragon (Media Relations)

Claire Norbury

+44(0)20 7618 9100

 

 

Introduction

 

AIQ was formed as a special purpose acquisition company ("SPAC") to undertake one or more acquisitions of a company or businesses involved in the e-commerce sector. The Company raised gross proceeds of approximately £4.0 million (net proceeds of approximately £3.6 million) by way of a subscription from its founding directors and other investors and its Ordinary Shares were admitted to trading on the Official List of the London Stock Exchange (by way of a Standard Listing) ("Admission") on 9 January 2018.

 

In April 2018, the Company raised a further £115,000 (gross of expenses) by way of a placing of new Ordinary Shares and, in June 2018, approximately £252,000 (gross of expenses) through an open offer. These funds were raised to provide additional capital for acquisitions and to increase liquidity in the Company's shares. 

 

Since Admission, the Board has been active in its search for acquisition opportunities. The Directors continue to review a number of opportunities in the e-commerce, social media and artificial intelligence sectors, within the UK, Europe and Asia. Discussions are at an exploratory stage and the Company has not yet entered into negotiations with such parties.

 

Financial Review

 

The Company's cash balances at 31 October 2018 totaled £4.1 million, derived both from the subscription at the time of Admission to the Standard Listing segment of the London Stock Exchange in January and the subsequent placing and open offer in April and June respectively.

 

No investments were made during the period to 31 October 2018.

 

The loss for the period to 31 October 2018 was £654,276. The Company did generate any revenues and the majority of the loss reflects the transaction costs of £438,096 associated with the Company's Standard Listing and fundraisings as well as day-to-day administrative expenses of £381,806, partially offset by net foreign exchange gains of £147,078

 

The Company is incorporated in the Cayman Islands, and its activities are subject to taxation at a rate of 0%.

 

The loss per share was 1.6 pence.

 

Dividends

 

The Directors of AIQ do not propose to declare a dividend for the period ended 31 October 2018.

 

Growth Strategy and Outlook

 

The Company's near-term goals are to execute its acquisition strategy in the e-commerce sector. As noted above, the Directors are focusing on businesses located in the UK, Europe and Asia. In particular, the acquisition strategy is focused on identifying businesses or companies that:

  • are run by a management team with a strong track record of generating growth for shareholders and a proven experienced business record; and/or
  • have attractive commercial prospects within the e-commerce or social marketing sectors in general; and/or
  • have existing members or consumers; and/or
  • are within lower risk jurisdictions, within countries with a strong focus on protecting investors' interests, low sovereign risk and those that encourage and incentivise investment; and/or
  • have revenues that offer the potential for near-term positive cash flows; and/or
  • can be funded adequately to be capable of delivery of a realistic plan of achieving credible milestones and significant growth opportunities for shareholders.

 

The Directors believe that these markets offer significant growth potential. The global e-commerce market is predicted to be worth $2.3 trillion in 2019, with double-digit growth projected until at least 2022. Asia-Pacific remains the largest market globally, where e-commerce is already the leading retail channel thanks to the region's advanced digital infrastructure and propensity to embrace technology innovation. The UK is the largest market in Western Europe for e-commerce sales, despite being only the third-largest retailing market, and this year e-commerce is expected to become the main retail channel in the UK, ahead of its neighbours in Europe.

 

As a result, the Board remains greatly encouraged by the opportunities with which it is being presented. With the growth in the global e-commerce markets showing no signs of abating, and a strong balance sheet, the Company is well-positioned to execute on its targets and deliver shareholder value. The Board looks forward to updating the market, as applicable, in due course.

 

Publication of Annual Report

 

The Company's annual report and accounts for the period from incorporation on 11 October 2017 to 31 October 2018 has been published today and is available on the AIQ website at: http://www.aiqhub.com/web/investor.php.

   STATEMENT OF COMPREHENSIVE INCOME

 

 

 

 

 

 

  Continuing operations

 

 

 

 

 

Period from

11 October 2017 to

31 October 2018

 

£

  Administrative expenses

 

 

(381,806)

  Transaction costs

 

 

(438,096)

  Gains on foreign exchange (net)

 

 

147,078

  Operating loss

 

 

(672,824)

 

 

 

 

  Finance income

 

 

18,548

  Loss before taxation

 

 

(654,276)

  Taxation

 

 

-

  Total comprehensive loss attributable to equity              holders of the Company for the period

 

 

 

(654,276)

 

 

 

 

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

 

 

(0.016)

           

 

There is no other comprehensive income for the period.

 

 

 

STATEMENT OF FINANCIAL POSITION

 

As at 31 October 2018

 

 

 

 

31 October 2018

 

£

Assets

 

 

 

 

Current assets

 

 

 

 

Prepayments and other receivables

 

 

 

15,708

Cash and cash equivalents

 

 

 

4,103,928

Total current assets

 

 

 

4,119,636

Total assets

 

 

 

4,119,636

 

Equity and liabilities

 

 

 

 

Capital and reserves

 

 

 

 

Ordinary shares

 

 

 

518,394

Share premium

 

 

 

3,848,420

Accumulated losses

 

 

 

(654,276)

Total equity

 

 

 

3,712,538

 

 

 

 

 

Liabilities

 

 

 

 

Current liabilities

 

 

 

 

Accruals and other payables

 

 

 

118,287

Amounts due to a director

 

 

 

288,811

Total current liabilities

 

 

 

407,098

 

 

 

 

 

Total equity and liabilities

 

 

 

4,119,636

 

The financial statements were approved and authorised for issue by the Board of Directors on 22 February 2019 and signed on its behalf by:

Soon Beng Gee (Nicholas)

Director 

 

 

STATEMENT OF CHANGES IN EQUITY

For the period from 11 October 2017 to 31 October 2018

 

 

 

 

Share

capital

Share premium

 

Accumulated losses

 

Total equity

 

 

£

£

 

£

 

£

 

On incorporation

 

 

152

 

               -

 

 

-

 

 

152

Total comprehensive loss for the financial period

 

 

 

-

 

-

 

 

(654,276)

 

 

(654,276)

Issue of shares during the period

   

518,242

3,848,420

 

-

 

4,366,662

Balance at 31 October 2018

518,394

3,848,420

 

(654,276)

 

3,712,538

 

 

 

 

STATEMENT OF CASH FLOWS

 

 

 

 

Period from

11 October 2017 to

31 October 2018

£

 

Cash flows from operating activities

 

 

 

 

Loss before taxation

 

 

(654,276)

 

Adjustment for:-

 

 

 

 

Interest income

 

 

(18,548)

 

Gain on foreign exchange

 

 

(147,078)

 

Operating loss before working capital changes

 

 

(819,902)

 

Increase in receivables

 

 

(15,708)

 

Increase in payables

 

 

118,287

 

Increase in amount owing to a director

 

 

288,811

 

Cash used in operations

 

 

(428,512)

 

Interest received

 

 

18,548

 

Net cash used in operating activities

 

 

(409,964)

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

Proceeds from issue of ordinary shares

 

 

4,366,814

 

Net cash generated from financing activities

 

 

4,366,814

 

 

 

 

 

 

Net increase in cash and cash equivalents

 

 

3,956,850

 

Cash and cash equivalents at beginning of the period

 

 

-

 

Effect of exchange rates on cash and cash equivalents

 

 

147,078

 

 

Cash and cash equivalents at end of the period

 

 

 

4,103,928

 

 

 

 

 

 

 

 

 

 


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