MBO7 Jan 2015 19:33
richvip - take a read of the HY report and previous to that the FY report
Year Ending 31st Dec 2013
£51.06 million Revenue
Loss after tax of £2.02 million
Cash and cash equivalents of £1.32 million
Loans and borrowings were £1.98 million (down from £2.39 million a year earlier)
The reason for the loss - "the Group recorded a higher loss after tax in 2013 mainly as a result of
1) a write down in value of certain assets
2) losses incurred in the Group's overseas operations in Cambodia, Indonesia and the Philippines
Bear in mind point number 2 - "In view of the continued losses from the operations in Cambodia and Indonesia ... the Company discontinued these operations in March 2014 in order to mitigate further losses in the future from these operations and to generate cost savings for the Group."
So at HY14 they had disposed of Cambodia and Indonesia operations which means in 2014 they would have reduced revenue but crucially better margins so potentially profits rather than losses (certainly reduced losses)
In August they announced they had purchase an office in Kuala Lumpur, Malaysia - their original base of operations. The cost of which was c.£333,550 paid for via cash in the bank. They were intending to refinance the property purchase by effectively remortgaging it for c£300,000 in order to make use of the cash - a pretty savvy move. Considering they were renting previously this was a good move, securing an asset with existing cash and then taking a loan on it but also because of the savings being made going forward (no more rent) and the 'potential property value appreciation'. The loan was expected to be completed by September and they are hoping to move into the new office in early 2015. They will still rent one of the two existing office premises in Kuala Lumpur.
At HY14
£23.5 million Revenue
Loss after tax of £30k (down from £120k in H113) - remember first 3 months also included losses accrued in Cambodia and Indonesia and as such they expect "an improved trading performance in the second half of 2014".
Also worth bearing in mind they took a non cash (impairment) loss on disposing of Indonesian operations in March 2014.
Cash and cash equivalents therefore jumped to £1.46 million (£140k increase in 6 months)
Loans and borrowings were £1.89 million (£90k reduction in 6 months)
So you see there is an improving picture here. The second half performance should be better still although loans will have increased by c£300k and intangible assets will also. I'm assuming the net cash/debt position will improve by £400-500k but we'll have to wait until June to hear Final Results for the full year 2014.
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