Half-year Report

SyQic plc

("SyQic", the "Group" or the "Company")

Half Yearly Report

SyQic plc, (AIM:SYQ), the fast growing OTT provider of paid video content across mobile and internet enabled consumer devices, announces its unaudited results for the six month period ended 30 June 2016.

FINANCIAL HIGHLIGHTS

· Revenue increased by 4% to £6.2m (H1 2015: £6.0m)

· Operating profit increased by 52% to £2.11m (H1 2015: £1.38m)

· Earnings per share increased by 53% to 7.80p from 5.09p

· Net cash at 30 June 2016 of £0.43m (30 June 2015: £0.58m)

· Qualified audit opinion on the financial statements for the year ended 31 December 2015 as the auditors are unable to obtain sufficient audit evidence to assess the recoverability of the Company's trade debtors. Additionally, the audit opinion for the year ended 31 December 2015 included a going concern emphasis of matter

OPERATIONAL HIGHLIGHTS

· Commencement of Yoomob trial service in Kenya

· Introduction of Cool2vu subscription service

· Relaunch of Yoomob in Myanmar

· Commencement of trial Yoomob service in Brunei

POST PERIOD HIGHLIGHTS

· Loans of £612,000 from CEO announced on 23 September 2016

· The Company has received interest from Yuma Ventures Ltd, a BVI incorporated investment holding company, to acquire all shares in the Company

On 28 June 2016, the board of directors of SyQic announced that it had become apparent that the Company would not be in a position to publish its audited report and accounts for the year ended 31 December 2015 by 30 June 2016 in accordance with Rule 19 of the AIM Rules for Companies. As a result trading in the Company's shares was suspended on AIM.

Due to the qualified audit opinion on the financial statements for the year ended 31 December 2015 and emphasis about the Company's ability to continue as a going concern being dependent on inter alia, the collection of trade receivables and the ability to raise future funds, the Company's shares remain suspended from trading on AIM. Further details on the qualified opinion on the financial statements and the going concern emphasis of matter are set out in note 1 of the financial statements for the year ended 31 December 2015.

In the event that trading in the Company's shares is not recommenced within six months of the date of suspension, trading in the shares on AIM will be cancelled altogether.

 Jamal Hassim, Group Chief Executive Officer of SyQic, commented:

"The proliferation of multiple competitive video services in the Asian region has put pressure on the growth outlook for SyQic's core Yoomob service. The SyQic management team is now in the midst of executing launches into other territories beyond Southeast Asia such as Kenya, to tap into faster growth in underserved markets. Following the Kenya launch, the Yoomob service will be rolled out into other African markets such as Ghana, Nigeria, Botswana and South Africa. Talks are also underway for the launch of the Yoomob service into India. Management still remains optimistic regarding growth prospects for the rest of the year. The challenge remains for management to collect receivables from revenues more rapidly and to bring debtors ageing under control. The management team is working at widening the number of territories that SyQic operates in and extending the number of telcos and billing partners that it works with to move away from its current focus on Southeast Asian markets."

For further information:

Notes to Editors:

About SyQic

SyQic is a fast-growing provider of live TV and on-demand video content across mobile and internet-enabled consumer devices. Incorporated in Jersey and headquartered in the UK, it has a significant service footprint in Singapore, Indonesia and Malaysia.

The Group launched its Korean content service called "Cool2vu" in Malaysia, Singapore and Indonesia in January 2015 streaming high demand Korean content utilising an advertising revenue model. The service has since been expanded to include Europe, South America, Central America, India and the Philippines.

Chief Executive's Statement

Results

The Board is pleased to report further growth in revenues and profitability during the six months under review. Revenues increased 4% to £6.2m from £6.0 million in the corresponding period of 2015. Gross profit increased 5% to £2.55m from £2.44m in H1 2015. Operating profits increased 52% to £2.11m (H1 2015: £1.38m), the large increase being partly as a result of the growth in revenue and from a reduction in administrative costs of 16%.

Our earnings for the first half of 2016 were £2.10m (H1 2015: £1.37m). This translated to growth in basic earnings per share of 53% to 7.80p (H1 2015: 5.09p). We completed the period with net cash of £0.43m (H1 2015: £0.58m).

There was a gain of £0.95m relating to currency translation differences compared with a loss of £0.74 in H1 2015. This reflected a strengthening in the Malaysian Ringgit against Sterling in the period to 30 June 2016.

Our MSC Pioneer status was renewed in January 2012 and runs for five years from that date, such that we expect to maintain a very low tax rate until at least 2017.

Whilst the two main debtors of the Group continue to pay down the older receivables, the overall receivables position has grown due to increased sales in 2015 and 2016. This has put pressure on the Company's cash flow and led to my continued financial support to the Company through a number of loans, as announced on 23 September 2016. Management will continue to review the receivables position and where necessary make fair value adjustments and make provisions to exercise prudence.

Due to the qualified audit opinion on the financial statements for the year ended 31 December 2015 (further details of which are set out in the Company's announcement of its final results for the year ended 31 December 2015, which was released today) and uncertainties about the Company's ability to continue as a going concern in light of, inter alia, the high level of trade debtors and dependence on ability to raise future funds, the Company's shares remain suspended from trading on AIM. In the event that trading in the Company's shares is not recommenced within six months of the date of suspension, trading in the Company's shares on AIM will be cancelled altogether.

Dividends

The Directors do not propose a dividend for the six-month period ended 30 June 2016.

Outlook

We are pleased with our performance during the first half of 2016, during which time we achieved further growth in revenues and profits which have been enhanced by control over overhead costs. These positive developments, combined with the continuing growth of our core business post period end, enable us to look to the future with confidence. However, in the short-term, the Company needs to address its cash flow difficulties and the uncertainties this brings to the Company's ability to capitalise on the opportunities in the sector.

Possible offer

On 20 April 2016 the Company announced that it was in discussions with Jamal Hassim, Chief Executive of SyQic, and MMV Investments (HK) Limited, a company owned by Johan Robb, (together "Bidco"), in connection with a possible offer for the whole of the issued share capital of the Company. The Independent Board of the Company is continuing discussions with Bidco, although there is no guarantee of a successful outcome.

Jamal Hassim

Chief Executive

4 November 2016

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2016

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2016

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2016 (continued)

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2016

Notes to the unaudited interim report

For the six months ended 30 June 2016

1. General information

The company is a public company limited by shares and incorporated in Jersey. The company is domiciled in Jersey and the registered office is Queensway House, Hilgrove Street, St Helier, Jersey JE1 1ES.

The principal activity of the company is a provider of live TV and on-demand paid video content across various types of internet-enabled consumer electronics devices.

2. Basis of preparation

The interim financial information has been prepared on the basis of the accounting policies set out in the annual report and accounts for the year ended 31 December 2015, which have been prepared in accordance with International Financial Reporting Standards as adopted for use by the European Union.

The interim financial information is unaudited and does not constitute statutory accounts as defined in the Companies (Jersey) Law 1991.

The interim financial information has been drawn up using accounting policies and presentation expected to be adopted in the Group's full financial statements for the year ending 31 December 2016. Any new standards that will be adopted in full for the first time in the year-end financial statements do not have a material impact on this interim financial information.

The statutory financial statements for the year ended 31 December 2015 were prepared under IFRS and IFRIC interpretations as adopted by the European Union and in accordance with the requirements of the Companies (Jersey) Law 1991. The auditors reported on those financial statements; their Audit Report was qualified on the basis of a limitation on scope as they were unable to obtain sufficient audit evidence to assess the ability of two major customers to make repayments of outstanding amounts. The Audit Report also contained an emphasis of matter paragraph in respect of going concern.

Certain comparatives have been restated to give a more consistent presentation against current year amounts.

The interim financial information set out in this announcement was approved and authorised for issue by the board of directors on 4 November 2016.

Copies of this financial information will be available on the Company's website.

3. Earnings per share

Basic earnings per share is calculated by dividing the profit attributable to equity holders 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 shares. As at 30 June 2016, the exercise price of options exceeded the share price and the options are therefore not dilutive

4. SEGMENTAL ANALYSIS

IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision maker (which takes the form of the board of directors of the Company) as defined in IFRS 8, in order to allocate resources to the segment and to assess its performance.

Based on management information there is only one operating segment. Revenues are reviewed based on the products and services provided.

The Directors of the Company consider the principal activity of the Group to be that of a provider of OTT live TV and on-demand paid video content across mobile, internet-enabled consumer electronics devices such as mobile phones and tablets, and to consummate one reportable segment, that of the provision of OTT live TV and on-demand paid video content services.

Revenues derived from major customers, who individually represent 10% or more of total revenue are as follows

All revenues were generated by operations in Asia in the year ended 31 December 2015 and the six months ended 30 June 2016.

5. INCOME TAX EXPENSE

The income tax expense of £6,000 comprises a provision for current taxation arising from the Group's operations in Malaysia.

There is no taxation arising from other comprehensive income.

6. RELATED PARTY INFORMATION

Directors' guarantees:

A personal guarantee from Muhamad Jamal Bin Muhamad Hassim and Lee Ai Lin, a director of SCSB, dated 5 July 2013, in support of a Maybank Islamic Berhad Islamic Banking Facility Cash Line of RM500,000 taken out by SCSB.

Amounts of S$55,000 (approximately £28,000) and RM240,000 (approximately £41,000) owing to Stream Global Pte Ltd, a shareholder in the Company, remained outstanding throughout the six-month period ended 30 June 2016. 

Amounts due to directors:

The amounts owing to Directors are unsecured, interest free and do not have a set repayment date.

7. SEASONALITY OF THE GROUPS BUSINESS

There are no seasonal factors which materially affect the operations of any company in the Group.

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