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Amala Foods PLC (DISH)

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Monday 31 January, 2022

Amala Foods PLC

Half-year Report

RNS Number : 1136A
Amala Foods PLC
31 January 2022
 

 

 

 

Amala Foods Plc

( " Amala " or the " Company")

 

Half Yearly Financial Report for the Period Ending 30 September 2021

 

Amala Foods Plc (LON: DISH), a food technology company, is pleased to announce the publication of the Half Yearly Financial Report for the Period Ending 30 September 2021.  The Report will shortly be available on the Company website www.eatamala.com and will be uploaded to the National Storage Mechanism.  The Report is laid out below this announcement.

 

Enquiries:

 

Jonathan Morley-Kirk, Non-Executive Chairman

[email protected] 

 

REPORT OF THE DIRECTORS

 

The Directors present the report together with the unaudited interim financial statements for the Group for the half-year ended 30 September 2021.

 

The Company

 

Amala Foods Plc (formerly BigDish Plc), the parent Company, is registered (registered number 121041) and domiciled in Jersey. It was incorporated on 11 April 2016 .

 

Principal Activity and Business Review

 

The Company's principal activity during the period ended 3 0 September 2021 was a holding company, holding a Joint Venture plant-based food technology business in the Philippines, Amala Foods Inc with the Directors believe will be the value driver of the business going forward.

 

Amala Foods has made rapid progress with research and development with a number of plant-based products successfully progressing to the commercial phase.  This was achieved at a fraction of the cost when compared to other participants in the sector.

 

In the weeks leading up to the publication of this report, the Company has received a number of unsolicited preliminary and non-binding approaches by companies in various sectors that command premium stock market ratings such as the Rare Earth Elements and technology sectors to utilize the Company's public listing which the Board has engaged constructively with.  These approaches have indicated that should a deal be completed it would result in a 'see through' valuation for shareholders that is materially in excess of the Company's current market capitalization.  The Board has discussed in general terms with key stakeholders regarding this possibility and feedback has been constructive and supportive.  The Company will update the market should this progress further. 

 

 

Results and Dividends

 

The results of the Group for the half-year ended 30 September 20 21 show a loss before taxation of GBP 185,703   (30 September 2020 showed a loss of GBP 426,142 ).

 

No dividends have been paid during the half-year ended 30 September 20 20 or during the comparative period.

 

Operational Activities

 

The Company's principal activity during the period ended 30  September 2021 was a holding company.  The Group's principal activity during this period was to develop its Joint Venture plant-based food technology business in the Philippines, Amala Foods Inc.  The Company announced completing the initial research and development phase and has entered the commercialisation phase and has started supplying its plant-based products. Whilst still at an early stage, the Directors believe this will be the value driver of the business going forward

 

Principal Risks and Uncertainties

 

The principal business risks that have been identified are as below.

 

COVID-19 Risks

 

The restaurant sector has experienced significant disruption from COVID-19. This has impacted the Company's business and continues to do so. The Company continues to monitor the impact of COVID-19 on an ongoing basis and expects that some of its restaurant partners may not remain in business as a result. The Company is assessing how best to utilise the BigDish technology platform for its future business activities in the light of the changing hospitality landscape due to the COVID-19 pandemic.

 

The Joint Venture company is expected to be impacted by COVID-19 due to lockdowns in the Philippines which may affect operations periodically and also delay ordering equipment and supplies.

 

Marketplace Risk

 

The Company is operating in a competitive market and faces competition from other companies who do or may in the future offer a similar service on similar terms. Competitors may have much greater access to capital than the Company and therefore may be able to bring products to market sooner.

 

If the Company is unable to attract sufficient and potential customers at the rate expected, the Company may be unable to successfully compete in the market which may have a material adverse impact on its future prospects. 

 

Joint Venture Risk

 

The Company has entered a Joint Venture and formed Amala Foods, Inc. in the Philippines to use food technology to create plant-based products for restaurants and consumers.  Whilst the Joint Venture partners are experienced in the food industry, the marketplace for plant-based products is competitive and there can be no guarantee that the Joint Venture will result in a profitable business venture.

 

Funding Risk

 

The Company has not reached breakeven due to the early stage of business development. This therefore requires that the Company raises additional capital periodically. There can be no guarantees that additional capital will be available when required. 

Key Personnel Risk

 

The loss of/inability to attract key personnel could adversely affect the business of the Company. The Company is dependent on the experience and abilities of its Directors and certain Senior Managers and technology staff. If such individuals were to leave the Company, and the Company was unable to attract suitable experienced personnel to compensate for those departing, it could have a negative impact on the rate of growth of the business.

 

Compliance Risk

 

The Company may process personal data (names, emails and telephone numbers), which may be considered sensitive, as part of its business. The Company may be subject to investigative or enforcement action by regulatory authorities in the Company's countries of operations if it acts or is perceived to be acting inconsistently with the terms of its privacy policy, customer expectations or the law. The Company will continue to monitor its policies to ensure on-going compliance with the General Data Protection Regulation (GDPR) regulations.

 

Brexit Risk

 

The Company has not made contingency plans for risks associated with Brexit albeit this is not expected to impact the business given the locations of its current activities.

 

Any risks that may arise will be mitigated through on-going review by Management and reporting of KPIs to the Board for periodic review and strategy amendment as required.

 

Events after the Reporting Period

 

Refer note 9 of the unaudited interim financial statements.

 

Company Directors

 

 

 

Position

 

Appointment Date

Audit

Committee

Remuneration Committee

Jonathan Morley-Kirk

Non-Executive Chairman

16 April 2016

Chair

Chair

Aidan Bishop

Executive Director

16 April 2016

-

-

 

The Directors note that t he search for a replacement NED is on-going.

 

Share Capital

 

At 30 September 2021, the issued share capital of the Company stood at 3 73,620,823 - with no new shares having been issued during the period.

 

This Directors' Report was approved by the Board of Directors on 2 8 January   2022 and is signed on its behalf.

 

By Order of the Board

 

 

 

 

Jonathan Morley-Kirk

Chairman

2 8 January 202 2
 

CONSOLIDATED INCOME STATEMENT

For the half-year ended 30 September 20 20

 

30 Sep 20 21   30 Sep 2020

  (unaudited)  (unaudited)

  Note                                     GBP  GBP 

 

Income  -   -

Cost of sales                                                                                                                                           -   -

 

 

Gross profit  -   -

 

 

Administrative expenses  ( 195,410)   ( 515,875)

Interest income                                                                                                                                      9,707                         -

Fair value gain                                                                                              7                                              89,733

 

 

Loss before taxation  ( 185,703)  (426,162)

 

 

Income tax expense                                                                                                                                      -  - 

 

 

Loss for the period                                                                            4                                     ( 185,703)  (426,142)

 

 

Earnings per share:

Basic and diluted loss per share                                                                    6                                       (0.00 05)  (0.0012)

 

 

The accompanying notes form an integral part of these financial statements.

 

 

 

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the half-year ended 30 September 2021

 

 30 Sep 2021           30 Sep 2020

   (unaudited)             (unaudited)

  Note  GBP  GBP 

 

 

Loss for the period  (185,703)  (426,142)

Exchange difference on translating foreign operations*                                                                           4,016       (11,887)

 

 

Total comprehensive loss for the period                                                                                       (181,687)  (438,029)

 

*To be reclassified to Profit and Loss if the foreign entity is sold.

 

The accompanying notes form an integral part of these financial statements.

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

at 30 September 2021

 

30 Sep 2021                 30 Sep 2020

   (unaudited)  (Re-stated unaudited)

  Note  GBP  GBP 

 

 

Non-current assets

 

Property, plant and equipment                                                                                                                     -  6,739

 

 

                                                                                                                                                                     -  6,739

Current assets

 

Trade and other receivables                                                                        5                                         7,641                         237,346

Cash and cash equivalents  198,253                        156,424

 

 

  205,894                     393,770

Current liabilities

 

Trade and other payables                                                                                                                      (124,429)                  (170,219)

Borrowings                                                                                                                                                         -                      (13,403)

 

 

  (124,429)  (183,622)

 

Non-current liabilities

 

Trade and other payables                                                                                                                                   -         -

Borrowings                                                                                                                                               (450,000)                         -

 

 

                                                                                                                                                                   (450,000)                         -

 

 

Net assets/(liabilities)                          (368,535)               216,887

 

 

Equity

 

Issued share capital  6                                                     6,215,525  6,444,670

Retained earnings                       (7,948,451)  (7,267,334)

Other Reserves       8                                                     1,364,391  1,039,551

 

 

Total equity                                                                                           (368,535)  216,887

 

 

The accompanying notes form an integral part of these financial statements.

 

These financial statements were approved by the Board of Directors.

 

 

 

 

 

Jonathan Morley-Kirk

Chairman

28 January 2022

 

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

at 30 September 2021

      Share    Retained  Other  Total                                                                                                                                                                                                                    Capital    Earnings  Reserves   Equity

      GBP    GBP  GBP  GBP

 

 

At 31 March 2020      5,972,980  (6,816,192)           1,275,147              431,935

 

 

Prior period adjustment                                                                                     -            (25,000)             112,961                87,961

 

 

At 31 March 2020 (Re-stated)     5,972,980  (6,841,192)    1,388,108  519,896

 

 

Loss for the period                                                                               -   (426,142)                    - (426,142)

Other comprehensive income for the period                                                         -            -  (11,887)     (11,887) 

 

 

Total comprehensive income for the period                                                         -       (426,142)          (11,887)         (438,029)

 

 

Warrants reserves                                                                                                 -                   -  (89,733)  (89,733)

Shares to be issued                                                                                   -                    -  (246,937)             (246,937)

Issue of new ordinary shares (net)                                                           471,690                               -    -     471,690

 

 

Total transactions with owners                                                                       471,690                 (426,142)  (348,557)  (303,009)

 

 

At 30 September 2020 (/Re-stated/unaudited)                                          6,444,670             (7,267,334)      1,039,551             216,887

 

 

Loss for the period                                                                                   -    (572,226)                  - (572,226)

Other comprehensive income for the period                                                             -                    -    15,159 15,159 

 

 

Total comprehensive income for the period                                                               -    (572,226)           15,159 (557,067)

 

 

Warrants reserves                                                                                                     -                    -          89,733     89,733

Share options reserves                                                                                             -                      -      166,765   166,765

Shares to be issued reserve                                                                                     -                     -    125,979     125,979

Issue of new ordinary shares (net) - adjustment                                           10,484                                 -      -     10,484

Share based payments                                                                                              -                          76,812  (76,812)                    -

 

 

Total transactions with owners                                                                          10,484                      (495,414)            320,824  (164,106)

 

 

At 31 March 2021                                              6,455,154                   (7,762,748)          1,360,375 52,781

 

 

Loss for the period                                                                                     -            (185,703)                  -     (185,703)

Other comprehensive income for the period                                                               -                         -          4,016       4,016 

 

 

Total comprehensive income for the period                                                               -               (185,703)              4,016 (181,687)

 

 

Issue of new ordinary shares (net)                                                               (239,629)                                     -  -  (239,629)

 

 

Total transactions with owners                                                                           (239,629)                         (185,703)               4,016 (421,316)

 

 

At 30 September 2021 (unaudited)                                                               6,215,525                      (7,948,451)          1,364,391  (368,535)

 

 

The accompanying notes form an integral part of these financial statements.
 

CONSOLIDATED CASH FLOW STATEMENT

For the half-year ended 30 September 2021

 

30 Sep 2021  30 Sep 2020

(unaudited)  (unaudited)

  Note     GBP       GBP

 

 

Cash flows from operating activities

 

Cash received from customers                                                                                                                 -                           -

Cash paid to suppliers & employees             (187,934)  (278,822)

 

 

Net cash from operating activities  (187,934)  (278,822)

 

 

Cash flows from financing activities

 

Loan repayments        -           (2,370)

Cash received from loan receivable  -       50,000

Loan received  246,284

 

 

Net cash used in financing activities                                                                                               246,284                     46,730

 

 

Net increase (decrease) in cash                                                                                         58,890    (231,192)

 

 

Cash and cash equivalents at start of period         139,633                     387,616

Cash and cash equivalents at end of the period                                                                                 198,523                    156,424

 

 

The accompanying notes form an integral part of these financial statements.

 

 

 

 

 

 

NOTES TO THE FINANCIAL STATEMENTS

For the half-year ended 30 September 2021

 

1. BASIS OF PREPARATION AND ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)

 

The consolidated interim financial statements have been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards as endorsed by the European Union ("IFRS") and expected to be effective at the year-end of 31 March 2022. The accounting policies are unchanged from the financial statements for the year ended 31 March 2021. The interim financial statements, which have been prepared in accordance with International Accounting Standard 34 (IAS 34) as adopted by the European Union, are unaudited. Accounts for the year ended 31 March 2021, prepared in accordance with IFRS, have been filed.  The Auditors' Report on these accounts was unqualified, but did include a material uncertainty in respect of going concern.

 

The consolidated interim financial statements are for the six months to 30 September 2021. The interim consolidated financial information does not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual financial statements for the year ended 31March 2021, which were prepared in accordance with IFRS's as adopted by the European Union.

 

 

2. GOING CONCERN

 

The Group made a consolidated loss in the half-year ended 30 September 2021 of GBP 185,703. At 30 September 2021, the consolidated cash held was GBP 198,523 and the Group had consolidated liabilities of GBP 574,429 which includes GBP 103,000 due to related parties. The related parties liabilities are expected to be settled via equity under the Company's salary sacrifice scheme.

 

The Company has entered into a short-term funding agreement for GBP540,000. As of the publication date of this report, GBP 450,000 has been drawn down. The Company announced after the period on 8 December 2021 that it had raised GBP 210,000 via an equity placing and a further GBP 100,000 of loan financing with a 12 month term at a fixed interest of 8% due at maturity.  As of the publication date of this report the loan financing has yet to be drawn down. It is expected that this funding will extend the funding runway beyond the second quarter of 2022.

 

Whilst the company is confident that it can stretch the short-term funding beyond the second quarter of 2022, there remains material uncertainty and the company will require further funding at some point during the 12 months from the date of this report. The Financial Statements have been prepared on a Going Concern basis. 

 

 

3. SEGMENTAL REPORTING

 

3.1 For the half-year ended 30 September 2021

 

Income Statement

for the half-year ended

30 Sep 2020 (unaudited)

Jersey

GBP

Hong Kong

GBP

Indonesia

GBP

Philippines

GBP

UK

GBP

Total

GBP

 

 

Revenue

 

-

 

-

 

-

 

-

 

-

 

-

Cost of sales

 

-

-

-

-

-

-

 

Gross Profit

 

 

-

 

-

 

-

 

-

 

-

 

-

 

Administration expenses

 

(145,632)

 

-

 

-

 

(40,071)

 

-

 

(185,703)

 

 

Loss for the Period

 

 

(145,632)

 

-

 

-

 

(40,071)

 

-

 

(185,703)

 

 

 

Statement of Financial Position

at 30 Sep 2021

(unaudited)

Jersey

GBP

Hong Kong

GBP

Indonesia

GBP

Philippines

GBP

UK

GBP

Total

GBP

 

 

Non-current assets

 

-

 

-

 

-

 

-

 

-

 

-

Trade and other receivables

-

-

-

7,641

-

7,641

Cash and cash equivalents

 

193,005

-

-

5,248

-

198,253

 

Total assets

 

 

193,005

 

-

 

-

 

12,889

 

-

 

205,894

Current liabilities

(123,124)

-

-

(1,305)

-

(124,429)

Non-current liabilities

 

(450,000)

-

-

-

-

(450,000)

 

Net assets/(liabilities)

 

 

(380,119)

 

-

 

-

 

11,584

 

-

 

(368,535)

 

 

3.2 For the half-year ended 30 September 2020

 

Income Statement

for the half-year ended

30 Sep 2020 (unaudited)

Jersey

GBP

Hong Kong

GBP

Indonesia

GBP

Philippines

GBP

UK

GBP

Total

GBP

 

 

Revenue

 

-

 

-

 

-

 

-

 

-

 

-

Cost of sales

 

-

-

-

-

-

-

 

Gross Profit

 

 

-

 

-

 

-

 

-

 

-

 

-

 

Administration expenses

 

(251,612)

 

-

 

-

 

(114,442)

 

(60,088)

 

(426,142)

 

 

Loss for the Period

 

 

(251,612)

 

-

 

-

 

(114,442)

 

(60,088)

 

(426,142)

 

Statement of Financial Position

at 30 Sep 2020

(Re-stated/unaudited)

Jersey

GBP

Hong Kong

GBP

Indonesia

GBP

Philippines

GBP

UK

GBP

Total

GBP

 

 

Non-current assets

 

-

 

-

 

-

 

6,739

 

-

 

6,739

Trade and other receivables

207,840

285

-

21,421

7,800

237,346

Cash and cash equivalents

 

79,489

-

-

8,495

68,440

156,424

 

Total assets

 

 

287,329

 

285

 

-

 

36,655

 

76,240

 

400,509

Current liabilities

(7,196)

-

(5,506)

(138,201)

(32,719)

(183,622)

Non-current liabilities

 

-

-

-

-

-

-

 

Net assets/(liabilities)

 

 

280,133

 

285

 

(5,506)

 

(101,546)

 

43,521

 

216,887

 

 

 

4. LOSS FOR THE PERIOD BEFORE TAX

 

    30 Sep 2021  30 Sep 2020

    (unaudited)   (unaudited)

    GBP  GBP

 

 

Loss for the period has been arrived at after charging:

 

Directors remuneration                   80,000                       80,000

Staff costs    9,420    200,915

 

 

 

5. TRADE AND OTHER RECEIVABLES

 

  30 Sep 2021  30 Sep 2020

(unaudited)  (unaudited)

GBP  GBP

 

 

Trade and Other Receivables              7,641  29,506

Loan Receivables                                      -                     207,840

 

 

Balance at end of period    7,641         237,346

 

 

All receivables are current assets and due within 12 months. GBP 50,000 repayment of the loan receivables was received by the Company in the half-year to 30 September 2020 and the balance of GBP 239,630 was cleared in the half-year to 30 September 2021.

 

 

6. SHARE CAPITAL

 

6.1 Share Capital

  30 Sep 2021    30 Sep 2020

  (unaudited)    (Re-stated/unaudited)

  Number    GBP    Number   GBP

 

 

Opening balance  373,620,823   6,444,670    348,950,355  5,972,980 

Adjustment - 31 March 2021                                                                                 -     10,484                       -    -

Ordinary shares - new shares issued during the period                                       -          -         24,670,468       471,690

Loan receivables settlement                                                                                 -   (239,629)                        -        -

 

 

Closing balance  373,620,823   6,215,525    373,620,823  6,444,670

 

 

The shares have no par value. The Group holds 11,000,000 shares in treasury (30 September 2020, 11,000,000).

 

 

6.2 Earnings Per Share

 

30 Sep 2020

(unaudited)

GBP

30 Sep 2019 (unaudited)

GBP

 

Basic and diluted earnings per share

 

(0.0005)

 

(0.0012)

Loss used to calculate basic and diluted earnings per share

(185,703)

(426,142)

Weighted average number of shares used in calculating basic and diluted earnings per share

373,620,823

360,622,075

    

 

Earnings per share is calculated by dividing the loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding and shares to be issued during the period.

 

In 2021 and 2020, the potential ordinary shares were anti-dilutive as the Group was in a loss making position and therefore the conversion of potential ordinary shares would serve to decrease the loss per share from continuing operations. Where potential ordinary shares are anti-dilutive a diluted earnings per share is not calculated and is deemed to be equal to the basic earnings per share.

 

The warrants noted in note 7 could potentially dilute EPS in the future.

 

 

7. SHARE WARRANTS

 

Warrants are denominated in Sterling and are issued for services provided to the Group or as part of the acquisition of a subsidiary.
 

Warrants at 30 September 2021:

 

 

 

Exercise price

No. issued and exercisable at 01 Apr 2021

 

No. exercised in period

 

No. lapsed in period

No. outstanding and exercisable at 30 Sep 2021

 

Expiry date

4.50p

2,654,585

-

(2,654,585)

-

02 August 2021

1.35p

4,324,320

-

-

4,324,320

19 October 2023

1.10p

5,404,400

-

-

5,404,400

19 November 2023

Closing balance

12,383,305

-

(2,654,585)

9,728,720

 

 

The charge for the period to 30 September 2021 is GBP Nil (30 September 2020: GBP Nil).

 

 

8. RESERVES

 

30 Sep 2021

(unaudited)

GBP

30 Sep 2020

(Re-stated

unaudited)

GBP

   

 

Translation reserve

 

85,986

 

66,811

Share options reserve

Warrants reserve

Shares to be issued reserve

 

949,732

89,733

238,940

859,779

-

112,961

 

Balance at end of period

 

1,364,391

 

1,039,551

 

 

 

9. EVENTS AFTER THE REPORTING PERIOD

 

The Company announced on 8 December 2021 that it had raised GBP 210,000 via an equity placing.

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