Last checked at 21 Dec 2017 08:00
ORIENT TELECOMS PLC
INTERIM FINANCIAL STATEMENTS
For the six months ended 30 September 2017
Director's Statement
I have pleasure in presenting the interim financial statements of Orient Telecoms plc (the "Company") for the period from 1 April 2017 to 30 September 2017.
During the financial period, the Company reported a net loss of £62,141 (£1.24 per share).
On 25 October, 2017, the Company was successfully 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.
Since the listing of the company, we have been extensively working on the marketing and sales related activities in the region. A number of potential clients have been engaged and have expressed their interest in the company's products and services. We anticipate in the next month to put together the forecast and the business plan for year 2018.
Responsibility Statement
The Directors are responsible for preparing the Condensed 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).
The Directors confirm that, to the best of their knowledge, this condensed consolidated interim report has been prepared in accordance with IAS 34 as adopted by the European Union. The interim report includes 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 condensed set of 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.
Mark Pincock
Director
21 December 2017
CONDENSED STATEMENT OF COMPREHESIVE INCOME
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2017
|
|
| 6 months period ended 30 September 2017 |
| Period from 26 February 2016 to 30 September 2016 |
| Notes |
| £ |
| £ |
|
|
| (Unaudited) |
| (Unaudited) |
|
|
|
|
|
|
INCOME |
|
| - |
| - |
|
|
| - |
| - |
Other operating expenses |
|
| (62,141) |
| (104,000) |
OPERATING LOSS/LOSS BEFORE TAXATION |
|
| (62,141) |
| (104,000) |
Income tax expense |
|
| - |
| - |
LOSS FOR THE PERIOD ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY |
|
| (62,141) |
| (104,000) |
OTHER COMPREHENSIVE INCOME |
|
|
|
|
|
Other comprehensive income |
|
| - |
| - |
|
|
|
|
|
|
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
|
| (62,141) |
| (104,000) |
|
|
|
|
|
|
Basic and diluted loss per share (₤) | 4 |
| (1.24) |
| (2.08) |
|
|
|
|
|
|
CONDENSED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2017
|
|
| As at 30 September 2017 |
| As at 31 March 2017 |
|
| Notes |
| £ |
| £ |
|
|
|
| (Unaudited) |
| (Audited) |
|
CURRENT ASSETS |
|
|
|
|
|
|
Other receivables |
|
| 2,500 |
| 2,500 |
|
|
|
| 2,500 |
| 2,500 |
|
CURRENT LIABILITIES |
|
|
|
|
|
|
Other payables | 5 |
| 233,141 |
| 161,000 |
|
|
|
|
|
|
|
|
NET LIABILITIES |
|
| (220,641) |
| (158,500) |
|
|
|
|
|
|
|
|
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY |
|
|
|
|
|
|
Share capital Retained earnings | 6
|
| 12,500 (233,141) |
| 12,500 (171,000) |
|
TOTAL EQUITY |
|
| (220,641) |
| (158,500) |
|
|
|
|
|
|
|
|
CONDENSED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2017
|
|
| 6 months period ended 30 September 2017 |
| Period from 26 February 2016 (inception) to 30 September 2016 |
| Notes |
| £ |
| £ |
|
|
| (Unaudited) |
| (Unaudited) |
Cash flow from operating activities |
|
|
|
|
|
Operating loss |
|
| (62,141) |
| (104,000) |
Changes in working capital Other receivables Other payables |
|
|
- 62,141 |
|
- 91,500 |
|
|
|
|
|
|
Net cash flow from operating activities |
|
| - |
| (12,500) |
|
|
|
|
|
|
Cash flow from financing activities |
|
|
|
|
|
Issue of share capital |
|
| - |
| 12,500 |
Net cash flow from financing activities |
|
| - |
| 12,500 |
|
|
|
|
|
|
Net increase in cash and cash equivalents |
|
| - |
| - |
Cash and cash equivalents at beginning of period |
|
| - |
| - |
Cash and cash equivalents at end of period |
|
| - |
| - |
|
|
|
|
|
|
CONDENSED STATEMENT OF CHANGES IN EQUITY
Period from 1 April 2017 to 30 September 2017 (unaudited)
| Share capital |
| Retained earnings |
| Total |
| £ |
| £ |
| £ |
As at 1 April 2017 | 12,500 |
| (171,000) |
| (158,500) |
Loss for the period | - |
| (62,141) |
| (62,141) |
Total comprehensive loss for the period | - |
| (233,141) |
| (220,641) |
|
|
|
|
|
|
As at 30 September 2017 | 12,500 |
| (214,000) |
| (220,641) |
Period from 26 February 2016 (inception) to 30 September 2016 (unaudited)
| Share capital |
| Retained earnings |
| Total |
| £ |
| £ |
| £ |
Loss for the period | - |
| (104,000) |
| (104,000) |
Total comprehensive loss for the period | - |
| (104,000) |
| (104,000) |
Shares issued on incorporation | 12,500 |
| - |
| 12,500 |
As at 30 September 2016 | 12,500 |
| (104,000) |
| (91,500) |
Period from 26 February 2016 (inception) to 31 March 2017 (audited)
| Share capital |
| Retained earnings |
| Total |
| £ |
| £ |
| £ |
Loss for the period | - |
| (171,000) |
| (171,000) |
Total comprehensive loss for the period | - |
| (171,000) |
| (171,000) |
Shares issued on incorporation | 12,500 |
| - |
| 12,500 |
As at 31 March 2017 | 12,500 |
| (171,000) |
| (158,500) |
NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED TO 30 SEPTEMBER 2017
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 2017 and 30 September 2016 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 incorporation on 26 February 2016 to 30 September 2016.
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 period ended 31 March 2017, which have been prepared in accordance with International Financial Reporting Standards as adopted by the EU ("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 but did contain an emphasis of matters paragraph in respect of the going concern.
The condensed financial information is presented in British Pound Sterling ("£").
The interim financial statements for the six months ended 30 September 2017 was approved by the Directors on 20 December 2017.
Going concern
These interim financial statements have been prepared on a going concern basis notwithstanding the existence of the net current liabilities and shareholder's deficits position at the end of reporting period.
Subsequent to the reporting year end, the Company raised approximately £769,860 of net new finance following its admission on the Main Market of London Stock Exchange. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence. For this reason, they continue to adopt the going concern basis in preparing the interim financial statements.
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 2017 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 2017.
4. 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 2017 | Period from 26 February 2016 (inception) to 30 September 2016 |
Earnings (£) | (62,141) | (104,000) |
Weighted average number of shares (Unit) | 50,000 | 50,000 |
Per-share amount (£) | (1.24) | (2.08) |
5. OTHER PAYABLES
| As at 30 September 2017 |
| As at 31 March 2017 |
| £ |
| £ |
|
|
|
|
Amount due to holding company | 120,000 |
| 107,500 |
Accruals | 29,800 |
| 34,000 |
Other payables | 73,341 |
| 19,000 |
| 223,141 |
| 161,000 |
6. SHARE CAPITAL
Ordinary shares of ₤1 each
| As at 30 September 2017 £ | As at 31 March 2017 £ |
Paid up: 50,000 ordinary shares at ₤0.25 each |
12,500 |
12,500 |
On 26 February 2016, the Directors approved the issue of 50,000 ordinary shares in the Company to Orient Managed Services Limited for £1 each, of which £12,500 have been paid and called up. The remaining £37,500, have not been called up at 31 March 2017, were fully paid upon listing of the Company's shares on London Stock Exchange on 25 October 2017.
7. SEASONAL OR CYCLICAL FACTORS
There are no seasonal factors that materially affect the Company's operation.
8. RELATED PARTY TRANSACTIONS
In 2016 the company entered into an agreement with a third party which provides consultancy service agreement in relation to the listing exercise of the Company. During the period the Company did not enter into any material transactions with related parties.
| As at 30 September 2017 | As at 31 March 2017 |
| £ | £ |
Holding Company |
|
|
Orient Managed Services Limited | 120,000 | 107,500 |
9. SUBSEQUENT EVENT
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.
Upon Admission the share capital of the Company was increased from £12,500 to £1,000,000.
The existing 50,000 shares of £1.00 each was converted to 500,000 shares of £0.10 each and balance of £37,500 being fully paid. 500,000 new shares of £50,000 were issued concurrently to the existing shareholder by conversion of payable amount.
On admission, 9,000,000 shares of £0.10 each were issued and fully paid. From listing total proceed of £900,000, the Company received net proceed of £769,860, after deduction of listing and broker cost.