Orient Telecom. Regulatory News (ORNT)

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 CASH FLOWS 

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2022

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)

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT 

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.

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. RIGHT-OF-USE ASSETS

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:

8. TRADE AND OTHER RECEIVABLES

9. TRADE AND OTHER PAYABLES

10. LEASE LIABILITIES

Lease liabilities are payable as follow:

11. SHARE CAPITAL

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

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*

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 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.