TIDMDISH
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
jmk@bigdish.com
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
Appointment Date Audit Remuneration
Position Committee 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 20 21
30 Sep 20 21 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 20 21
30 Sep 20 21 3 0 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 1 56,424
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
2 8 January 202 2
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
at 30 September 20 21
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 Se ptember 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 Se ptember 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 20 21
30 Sep 20 21 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 20 21
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 los s in the half-year ended 30
September 20 21 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 Jersey Hong Kong Indonesia Philippines UK Total
ended GBP GBP GBP GBP GBP GBP
30 Sep 2020 (unaudited)
-------------------------- ------------ ---------- ---------- ------------ ----- ------------
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 Jersey Hong Kong Indonesia Philippines UK Total
(unaudited) GBP GBP GBP GBP GBP 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 Jersey Hong Kong Indonesia Philippines UK Total
ended GBP GBP GBP GBP GBP GBP
30 Sep 2020 (unaudited)
-------------------------- ------------ ---------- ---------- ------------ ----------- ------------
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 Jersey Hong Kong Indonesia Philippines UK Total
(Re-stated/unaudited) GBP GBP GBP GBP GBP 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 30 Sep
2019 (unaudited)
(unaudited) GBP
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:
No. issued No. outstanding
and exercisable No. exercised No. lapsed and exercisable Expiry date
Exercise price at 01 Apr in period in period at 30 Sep
2021 2021
----------------- ----------------- ---------------- ------------- ----------------- --------------
02 August
4.50p 2,654,585 - (2,654,585) - 2021
19 October
1.35p 4,324,320 - - 4,324,320 2023
19 November
1.10p 5,404,400 - - 5,404,400 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 30 Sep 2020
(unaudited) (Re-stated
GBP unaudited)
GBP
------------------------------ ------------- ------------
Translation reserve 85,986 66,811
Share options reserve 949,732 859,779
Warrants reserve 89,733 -
Shares to be issued reserve 238,940 112,961
------------------------------ ------------- ------------
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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END
IR UAVNRUWUAORR
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