TIDMFXI
RNS Number : 6636X
Fusionex International PLC
15 January 2014
For Immediate Release 15 January 2014
Fusionex International plc
("Fusionex" or "the Company" or "the Group")
Preliminary results for the year ended 30 September 2013
Fusionex, an award-winning and market leading international
provider of enterprise software specialising in Analytics and Big
Data solutions, is pleased to announce maiden full year results for
the year ended 30 September 2013.
Financial Highlights:
Item (RM'million) 12 months ended 12 months ended Change (+/-)
30 September 30 September
2013 2012
-------------------- ---------------- ---------------- -------------
Revenue 44.4 31.3 +42%
-------------------- ---------------- ---------------- -------------
Gross Profit 34.3 23.2 +48%
-------------------- ---------------- ---------------- -------------
EBITDA 22.1 16.4 +35%
-------------------- ---------------- ---------------- -------------
Profit After Tax
(PAT) 19.0 13.1 +45%
-------------------- ---------------- ---------------- -------------
Earnings per share 45.3 sen 36.4 sen +24%
-------------------- ---------------- ---------------- -------------
Operational Highlights:
-- Launch of GIANT, the Company's Big Data Analytics software solution in December 2013
-- Strategic partnerships signed with Cloudera and Hortonworks,
two leading Hadoop distribution platform providers, which in
conjunction with GIANT provide a complete enterprise Big Data
offering to organisations
-- Client renewal rate in excess of 95% with continued demand for the Company's products
-- A positive order book with a 35% increase in new customers
-- Investment in R&D fuelling innovation and customer traction
-- Strategy to broaden geographical reach showing positive
results, products being particularly well received in Asia Pacific,
UK and US
-- Plan to invest and develop indirect channel (partner channel
network) to capitalise on market opportunities and to reach out to
a wider audience, in a scalable way
Ivan Teh, Chief Executive of Fusionex commented:
"Our first year as a listed Company has proven to be a period of
significant development for Fusionex, not only have we had a strong
year financially but we have also taken the business through a
period of significant growth.
"Our IPO in December 2012 has aided this development so far and
we are confident that the launch of our Big Data Analytics
solution, GIANT, will be a key catalyst for further progress and is
expected to yield positive sales momentum in the near term."
For further details:
Fusionex
Ivan Teh, Chief Executive Officer Through Buchanan
Yuen Choong Lai, Chief Financial Officer
Panmure Gordon
Fred Walsh, Grishma Patel, Ben Roberts
(Investment Banking)
Tom Nicholson, Charles Leigh-Pemberton
(Corporate Broking) 020 7886 2500
Buchanan
Jeremy Garcia, Gabriella Clinkard
www.buchanan.uk.com 020 7466 5000
Operational Review
Introduction
The last twelve months have been a significant period of
development for the Company, highlighted both by the Group's
successful listing on AIM in December 2012 and a solid 12 months of
trading. The Group's strong financial performance and the on-going
development of its software solutions, which now includes the
successful launch of its Big Data Analytics product, GIANT, in
December 2013, leaves the Group well placed to continue delivering
success.
Revenue during the period grew by 42% to RM44.4 million (2012:
RM31.3 million) while the Group's Profit Before Tax (PBT) grew from
RM15.0 million to RM20.5 million. EBITDA grew to RM22.1 million
(2012: RM 16.4 million) and Profit After Tax (PAT) reached RM 19.0
million (2012 RM 13.1 million) an increase of 45% over the same
period.
The Board intends to announce an interim dividend for the year
ending 30 September 2014.
Market Overview
Demand for Fusionex's solutions remains high. Gartner has
predicted that Business Intelligence and Analytics will remain as
the top focus for CIOs and this trend is set to continue through to
2017. Previously, Gartner mentioned that the top four business
priorities are increasing enterprise growth, delivering operational
results, reducing enterprise costs and attracting and retaining new
customers. These priorities are what Fusionex's products and
solutions are designed to address.
"Major changes are imminent to the world of BI and analytics,"
said Roy Schulte, vice president and distinguished analyst at
Gartner. "As the cost of acquiring, storing and managing data
continues to fall, companies are finding it practical to apply BI
and analytics in a far wider range of situations."
Fusionex outperformed market trends in the period ended 30
September 2013 by delivering more than 40% growth (Gartner reported
a flat worldwide IT spend in 2013). Moving into 2014, Gartner
forecasts that Enterprise software spending will total $320
billion, growing 6.8 % on 2013. Gartner also predicts that Business
Intelligence and Analytics will remain a top focus for CIOs through
to 2017.
Growth Strategy
The Company has a clear growth strategy, as outlined below,
which is being pursued by the management team. These are as
follows:
-- Focus on product development in order to expand its software
solutions portfolio by building out the functionality and features
surrounding its products and solutions
-- Leverage new opportunities around the launch of the Company's
Big Data Analytics product offering - GIANT
-- Target new customers in existing markets by developing sales
and marketing strategies and by providing further investment in
sales executives and branding activities
-- Expand Fusionex's talent pool by recruiting skilled personnel
for enterprise sales, marketing and R&D.
-- Expand product reach within Fusionex's existing client base
by encouraging greater levels of cross-selling and up-selling
-- Focus on geographic expansion by strengthening its presence
in Singapore and Thailand and establishing a presence in Hong Kong,
Greater China Region, Indonesia, Vietnam, Philippines, and
Australia
-- Increase operational footprint in Malaysia, a core home market
-- Establish a partner channel network to widen Fusionex's reach
to a wider audience and introduce an indirect sales channel
Operational Review
Fusionex finished the financial year strongly, growing both
revenues and profit, and continues to see good levels of demand for
both products and services. The Company's listing on AIM continues
to drive momentum for the business providing a significant catalyst
for enhancing the Company's profile globally whilst strengthening
the balance sheet, underpinning investment in both people and
products. There has also been a near doubling of new business leads
witnessed since the IPO, in particular for larger contract values
spread over longer time periods.
Renewal rates have also stayed strong with over 95% of
Fusionex's clients renewing their contracts this year. This
excellent customer retention also provides an opportunity for the
business to cross-sell the new Big Data offerings to the existing
client base, a significant organic growth opportunity for the
Group.
Management are also seeing an increasing openness from its
customers towards a subscription based revenue model. The Group now
offers this SaaS ('Software as a Service') model and this option
highlights the impact of GIANT and the significant opportunity to
upsell the product across multiple customer channels.
During the period, management has made good progress delivering
the Group's stated growth strategy of broadening Fusionex's
geographical reach and continuing to develop its Big Data offerings
and capabilities. The Group's business pipeline remains strong with
new customer mandates such as Schlumberger, China Light &
Power, UEM Sunrise, Volvo, Toyota, Mitsui, Hitachi, Jones Lang
LaSalle, Tune Group, Guinness and many more being secured during
the period. The UK and US are proving to be robust markets for
Fusionex, while the Asia Pacific region has shown significant
growth where Fusionex's brand and product recognition is high.
Sectors which have provided particularly consistent levels of
growth include Travel & Hospitality, Leisure and Retail. These
specific sectors demonstrate the strength of consumer spending in
the Asia Pacific region and the growing need for our customers to
analyse more complex and varied data in an optimised way. Fusionex
believes that established clients in these sectors will also
provide a significant opportunity for GIANT and are already in
active discussions to embrace our product.
Through a period of significant investment and product
transition Fusionex has seen further traction coming from broader
geographical markets and sectors. For example, the new Hong Kong
office secured its first client during the period and is now acting
as a gateway to the mainland Chinese market. The Group also
continues to build its business within the more mature markets in
Europe and the United States, where it has generated strong
revenues in the period.
This on-going demand is further strengthened by increased
awareness of Fusionex's brand and product offerings, particularly
across Asia Pacific, where Fusionex recently won Microsoft's Asia
Pacific Award for Business Intelligence, marking the second
consecutive year that Fusionex has earned the distinction of being
recognised as a key Microsoft Business Intelligence Partner,
highlighting the quality of its BI and Analytics product.
The Group has won numerous awards in 2013 including the Data
Analytics & Innovation Award at the Big Data World Asia event,
and the SiTF awards for Best Application and Best Emerging
Technology. In November 2013, Fusionex was also awarded the
prestigious Asia Pacific ICT Alliance (APICTA) Award for the highly
coveted Best Application Tools and Platform category. APICTA is the
largest ICT alliance in the Asia Pacific region, currently
comprising of more than 15 key member economies including
Australia, Brunei, Hong Kong, India, Indonesia, Korea, Macao,
Malaysia, Philippines, Singapore and Thailand. The Best Application
Tools and Platforms category was highly competitive as it was also
a category for Analytics and Big Data providers to showcase their
solutions.
Launch of GIANT
GIANT sets a new benchmark in functionality and access to Big
Data Analytics. It is a crucial step forward for Fusionex that is
part of the Group's roadmap to evangelise how people and
organisations use Big Data. The Group believes that GIANT is a
disruptive, innovative product that will help tame the Big Data
challenge.
In conjunction with the commercial launch of GIANT, Fusionex
also announced a strategic partnership with two of the most
established Big Data distribution platform providers, Cloudera and
Hortonworks, providing a significant route to market. Cloudera and
Hortonworks provide world renowned Hadoop distribution (distro)
platforms, while GIANT offers unique and powerful Big Data
Analytics capabilities. Together this partnership creates a
complete enterprise Big Data offering which Fusionex believes will
be a positive move for the business in the generation of
cross-referral opportunities.
Key features of GIANT include:
-- A simple, user friendly interface which bridges the gap
between business and technology through advanced visualisation and
simple 'drag & drop' and 'point & click' options instead of
coding requirements
-- With GIANT, users are shielded from programming complexities
- No ETL or Map Reduce, Pig, Hive Programming
-- GIANT processes and seamlessly integrates data from a
multitude of sources including structured, semi-structured and
unstructured data
-- GIANT is hardware agnostic and can be deployed to either HP, DELL or IBM servers
-- GIANT can be deployed on premise, in the 'Cloud', or even used in a hybrid environment
-- Leverage existing platforms, such as open source Apache
Hadoop, while utilising GIANT's Big Data Analytics and processing
capabilities.
-- GIANT supports multiple devices and form factors, and
therefore results and visualisation can also be rendered and
accessed from virtually any device, e.g. iPhone, Android, Tablet,
PC, laptop etc.
It is Fusionex's view that 'simplifying', 'humanising' and
'making sense' of Big Data, in a cost-optimised and commercially
feasible way, will go a long way in helping organisations derive
true business value. Fusionex GIANT is designed to be deliberately
intuitive and specialised training is not required to connect to
the designated data sources and derive meaningful and valuable
business insights. Management believes the launch of GIANT is a
significant milestone for the Company, and the Group is in advanced
negotiations with a number of new and existing customers.
Sales Channel Partnerships
Traditionally Fusionex has used direct sales initiatives to
drive revenue growth but is now in the process of establishing an
indirect sales channel. Following the launch of GIANT, Fusionex
established strategic partnerships with two leading platform
distribution providers: Hadoop and Hortonworks. Fusionex is
planning to actively pursue indirect sales partnerships with
reputable global, regional and local partners to help accelerate
the significant sales growth potential of GIANT.
The Group's strategic plan is to establish one to two key
partnerships over the current financial year which management
believe has the potential to deliver substantial business value and
synergy.
Research and Development
Research and development remains a key business driver for the
Group as it seeks to maintain its competitive advantage in
delivering software solutions. The on-going development of the
Group's Big Data software product GIANT has been a significant
milestone but remains a key focus for the team.
The Group's R&D team will continue to develop new features,
with GIANT providing a self-service mode now in development.
Current Trading and Outlook
The last 12 months have seen the Group deliver a strong
financial performance with demand for its software products
gathering significant momentum. The period has seen large levels of
investment and product development which will take the business
through important changes and growth in the near term. The
successful launch of GIANT is expected to be a significant catalyst
for the Group with a number of active discussions already taking
place with prospective and existing customers.
Key sectors such as Retail, Travel & Hospitality and Leisure
have shown strong growth momentum and offer good opportunities for
cross-selling within existing customers.
The Board remains confident that continued investment in sales
and marketing initiatives, sales pipeline conversion and the
creation of an indirect sales channel will continue to accelerate
growth.
Financial Review
The Group has been progressing well for the year under review
following the Company's admission to the AIM in London on 18
December 2012 with double digit percentage increases in key revenue
and profitability metrics.
The Group generated a net profit of RM19million on revenue of
RM44.4million for the financial year ended 30 September 2013.
Revenue
Group revenue increased by 42% to RM44.4 million (2012 : RM31.3
million) with 83% of the Group's total revenue contributed from
sale of products.
Services revenue declined by 21% which is in line with the
Group's strong focus on products instead of services. The Group has
also encouraged its customers to leverage on its self-service tools
to implement solutions. This increased focus on products affords
the Group to accelerate its product development which will bring
immediate and long term growth.
The Asia Pacific region, being a burgeoning economic region, was
the main contributor to the Group's revenue and its contribution
amounted to 78% of the total revenue. In addition to the Malaysia,
Singapore and Thailand markets, the Group has expanded to Greater
China, Indonesia and Australia as planned during the Group's
admission, culminating in further opportunities in new markets.
Gross Profit
Gross profit of the Group has increased by 48% over the year to
RM34.3million (2012 : RM23.2million). The amortisation cost for the
year has increased to RM1.1million from RM0.63million (2012) with
product enhancements costs that had been capitalised being charged
out as amortisation over the year when the relevant product
enhancements were commercialised in the year.
EBITDA and profitability
EBITDA for the period was RM22.1million (2012 : RM16.4million)
representing an increase of RM5.7million (35%). Even with the
increase in depreciation expenses for the year - due to higher
computer equipment and peripherals being purchased for the increase
in staffing and sales and implementation activities, and
amortisation expenses for commercialisation of the product
enhancements - the Group has been able to increase its operating
profit (profit before tax) by RM5.4million to RM20.5million (2012 :
RM15.1million) representing an increment of 36%.
Net profit (profit after tax) for the year has increased by
RM5.9million (45%) from last year to RM19.0million (2012 :
RM13.1million). Notwithstanding the increase in the costs and
expenses of the Group, net margin improved marginally to 43% (2012
: 42%).
Taxation
The Group operates in certain geographical areas in which the
income generated has been exempted from taxation or subject to tax
allowances. As a result, the Group was subject to minimal taxation
which resulted in the effective tax rate of the Group being in the
region of 7% (2012 : 13%).
Table - Selected Income Statement Extract
(RM'million) 30 September 2013 30 September 2012 Increase/(Decrease)
------------------ ------------------ ------------------ --------------------
Revenue 44.4 31.3 42%
------------------ ------------------ ------------------ --------------------
By: Type
------------------ ------------------ ------------------ --------------------
Products 36.9 21.8 69%
------------------ ------------------ ------------------ --------------------
Services 7.5 9.5 (21%)
------------------ ------------------ ------------------ --------------------
By: Region
------------------ ------------------ ------------------ --------------------
Asia Pacific 40.4 23.9 69%
------------------ ------------------ ------------------ --------------------
UK & Europe 10.7 8.3 29%
------------------ ------------------ ------------------ --------------------
USA 3.7 2.8 32%
------------------ ------------------ ------------------ --------------------
Consolidation
Elimination (10.4) (3.7) 181%
------------------ ------------------ ------------------ --------------------
Gross Profit 34.3 23.2 48%
------------------ ------------------ ------------------ --------------------
EBITDA 22.1 16.4 35%
------------------ ------------------ ------------------ --------------------
Profit before
tax 20.5 15.1 36%
------------------ ------------------ ------------------ --------------------
Profit after tax 19.0 13.1 45%
------------------ ------------------ ------------------ --------------------
EPS (RM) 0.45 0.36 24%
------------------ ------------------ ------------------ --------------------
Cash flow
Flotation of the Group in December 2012 resulted in the Group
raising GBP12million gross. The net proceeds were being used
principally to fund product development, expand the Group's sales
capabilities and provide additional working capital for the Group's
operation.
The Group continued to generate strong cash flows from its
operations with stronger inflows in the second half of the year. In
March 2013, the Group acquired a Grade A MSC status office unit of
38,000sq ft at Plaza 33, for the Group's head office in Malaysia
for a consideration of RM27.4million. The MSC status head office
will be used to support the key operational initiatives of the
Group which includes R&D for the new products and enhancements,
sales and marketing and geographical expansion.
With the strengthening of the Group's continuing operations,
cash generated from operations for the year has improved and is
standing at RM62million for the financial year of 30 September
2013.
The principal movements in the net cash were as follows:-
(RM'million) 30 September 2013 30 September 2012
------------------------------ ------------------ ------------------
Cash flows from operating
activities 19.8 15.8
------------------------------ ------------------ ------------------
Acquisition of property,
plant and, equipment
& software (28.6) (0.4)
------------------------------ ------------------ ------------------
Development costs incurred
on intangible assets (6.64) (3.5)
------------------------------ ------------------ ------------------
Drawdown of term loan,net 21.4 0.4
------------------------------ ------------------ ------------------
Net proceeds raised 52.8 -
from IPO
------------------------------ ------------------ ------------------
Dividend paid (6.0) (10.6)
------------------------------ ------------------ ------------------
Change in net cash
and cash equivalent
in the financial year 51.8 1.4
------------------------------ ------------------ ------------------
Cash and cash equivalent
at the beginning of
the financial year 10.3 8.9
------------------------------ ------------------ ------------------
Effects of foreign
exchange rate changes,
net 0.3 0.0
------------------------------ ------------------ ------------------
Cash and cash equivalent
at the end of the financial
year 62.4 10.3
------------------------------ ------------------ ------------------
Borrowings and Bank Facilities
Total borrowings of the Group have increased by RM21million to
RM27m (2012 : RM6million) principally from the drawdown of the
mortgage loan to acquire the MSC status Grade A office unit for the
Group's head office in Malaysia. The acquisition of the office unit
was funded by internal funds of RM6m and bank borrowings of
RM21million.
Equity
The equity of the Group was strong for the year and the equity
balance stands at RM86.5million (2012 : RM18.7million) with the
continuous profit improvement of the Group and strengthening of the
Group's balance sheet. Earnings per share (EPS) of the Group has
increased to RM0.45 (2012 : RM0.36).
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Note 2013 2012
RM RM
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 2 35,434,770 7,361,339
Goodwill on consolidation 3 549,572 549,572
Intangible assets 4 13,092,656 7,565,837
Deferred tax assets - -
------------- -----------
49,076,998 15,476,748
CURRENT ASSETS
------------- -----------
Trade receivables 6,626,987 3,840,642
Other receivables, deposits and
prepayments 824,188 1,038,490
Amounts owing by contract customers 2,742,394 2,391,025
Tax recoverable 93,343 2,955
Fixed deposits with licensed
banks 25,203,613 931,700
Cash and bank balances 37,187,913 9,381,686
------------- -----------
72,678,438 17,586,498
------------- -----------
TOTAL ASSETS 121,755,436 33,063,246
============= ===========
EQUITY AND LIABILITIES
Share capital 5 71,457,058 -
Merger reserve 6 (17,668,186) 1,000,000
Foreign exchange translation
reserve 7 690,121 383,090
Retained profits 32,037,486 17,285,096
------------- -----------
TOTAL EQUITY ATTRIBUTABLE TO
OWNERS 86,516,479 18,668,186
------------- -----------
NON-CURRENT LIABILITIES
Long-term borrowings 26,776,464 5,921,362
Deferred tax liabilities 1,117,157 1,162,126
------------- -----------
27,893,621 7,083,488
------------- -----------
CURRENT LIABILTIES
------------- -----------
Other payables and accruals 5,521,382 4,973,803
Amount owing to related parties - 1,224,486
Short-term borrowings 968,783 239,125
Provision for taxation 855,171 874,158
------------- -----------
7,345,336 7,311,572
------------- -----------
TOTAL LIABILITIES 35,238,957 14,395,060
------------- -----------
TOTAL EQUITY AND LIABILITIES 121,755,436 33,063,246
============= ===========
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
2013 2012
Note RM RM
Revenue 44,423,206 31,314,706
Cost of sales (10,090,185) (8,084,838)
--------------- --------------
Gross profit 34,333,021 23,229,868
Other income 2,183,063 1,065,912
36,516,084 24,295,780
Administrative and other operating
Expenses (15,676,003) (8,915,447)
Finance costs (340,115) (280,828)
Profit before taxation 20,499,966 15,099,505
Income tax expense 6 (1,488,168) (1,994,846)
Profit after taxation 19,011,798 13,104,659
Other comprehensive income (currency
translation differences) 307,031 250,968
Total comprehensive income for
the financial year 19,318,829 13,355,627
Profit after tax attributable
to:
Owners of the Group 19,011,798 12,739,649
Non-controlling interests - 365,010
19,011,798 13,104,659
=============== ==============
Total comprehensive income attributable
to:
Owners of the Group 19,318,829 12,964,241
Non-controlling interests - 391,386
19,318,829 13,355,627
=============== ==============
Earnings per share attributable
to owners of the Group
Basic, sen 9 45.30 36.40
Diluted, sen 9 45.30 36.40
=============== ==============
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Non distributable Distributable
Share Merger Foreign Retained Attributable Non - Total
capital reserve exchange profits to owners controlling equity
translation of the Group interests
reserve
Note RM RM RM RM RM RM RM
Balance at 1
October
2011 (Proforma) - 1,000,000 158,498 11,702,653 12,861,151 976,770 13,837,921
Profit after
taxation - - - 12,739,649 12,739,649 365,010 13,104,659
Other
comprehensive
expenses, net of
tax
- Foreign
currency
translation
differences for
foreign
operations - - 224,592 - 224,592 26,376 250,968
Total
comprehensive
income for the
financial
year - - 224,592 12,739,649 12,964,241 391,386 13,355,627
Dividend 7 - - - (7,300,000) (7,300,000) - (7,300,000)
Dividend paid by
a subsidiary to
non- controlling
interest - - - - - (876,505) (876,505)
Changes in
ownership
of interest in
subsidiary
that not result
in
a loss
of control:-
- acquisition of
interest
in a subsidiary - - - 142,794 142,794 (491,651) (348,857)
Balance at 30 September 2012
(Proforma) - 1,000,000 383,090 17,285,096 18,668,186 - 18,668,186
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
Non distributable Distributable
Share Merger Foreign Retained Attributable Total
capital reserve exchange profits to owners equity
translation of the Group
reserve
Note RM RM RM RM RM RM
Balance at 30 September 2012 - 1,000,000 383,090 17,285,096 18,668,186 18,668,186
Profit after taxation - - - 19,011,798 19,011,798 19,011,798
Other comprehensive,
income, net of tax - - - - - -
* foreign currency translation differences for
foreign operations - - 307,031 - 307,031 307,031
Total comprehensive
income for the
financial year - - 307,031 19,011,798 19,318,829 19,318,829
Dividend 7 - - - (4,259,408) (4,259,408) (4,259,408)
Issuance of shares (net of
issue costs) 71,457,058 (18,668,186) - - 52,788,872 52,788,872
Balance at 30 September 2013 71,457,058 (17,668,186) 690,121 32,037,486 86,516,479 86,516,479
CONSOLIDATED STATEMENT OF CASH
FLOWS
2013 2012
RM RM
Cash flow from operating activities
Profit before taxation 20,499,966 15,099,505
Adjustments for:-
Amortisation of intangible assets 1,152,029 634,382
Depreciation of plant and equipment 485,744 349,680
Interest expenses 340,115 280,828
Interest income (343,021) (12,391)
Reversal of allowance of impairment
loss on
receivables - (783,750)
Operating profit before working
capital changes 22,134,833 15,568,254
(Increase)/decrease in trade
and other
receivables (2,572,043) 1,956,253
Increase in other payables and
accruals 2,247,579 1,485,384
Increase in amount owing from
contract customers (351,369) (1,637,371)
Cash flow from operations 21,459,000 17,372,520
Interest paid (340,115) (280,828)
Interest received 343,021 12,391
Income tax paid (1,642,512) (1,277,747)
Net cash flow from operating
activities 19,819,394 15,826,336
Cash flow used in investing
activities
Purchase of property, plant
and equipment (28,559,175) (410,316)
Development costs on intangible
assets (6,625,462) (3,509,024)
Net cash flow used in investing
activities (35,184,637) (3,919,340)
Cash flow from/(used in) financing
activities
Repayment to related parties (1,224,486) -
Dividends paid (5,959,408) (10,565,000)
Drawndown of term loans 21,440,000 371,900
Drawdown/(repayment) of hire
purchase payables, net 326,018 (76,576)
Repayment of term loans (181,258) (216,739)
Proceeds from issuance of share
capital, net of issue cost 52,788,872 -
Net cash flow from/(used in)
financing
Activities 67,189,738 (10,486,415)
Net increase in cash and cash
equivalents 51,824,495 1,420,581
Cash and cash equivalent at beginning
of
the financial year 10,313,386 8,865,949
Effects of foreign exchange
rate changes, net 253,645 26,856
Cash and cash equivalent at
end of the financial year 62,391,526 10,313,386
============== =============
NOTES TO THE PRELIMINARY ANNOUNCEMENT
For the year ended 30 September 2013
1. Basis of preparation
The financial information set out in this preliminary
announcement is abridged and does not constitute the Company's
statutory financial statements for the year ended 30 September
2013. The financial information has been extracted from the
financial statements for the year ended 30 September 2013, which
were approved by the Board on 14 January 2014 and on which the
auditors have reported without qualification. The 2013 Annual
Report will be distributed to shareholders and made available on
the Company's website at http://www.fusionex-international.com. It
will also be filed with the Companies Registered Office.
The consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards
("IFRS") as adopted by the European Union ("EU") issued by the
International Accounting Standards Board ("IASB"), including
related interpretations issued by the International Financial
Reporting Interpretations Committee ("IFRIC") and using accounting
policies which are consistent with those applied in the Admission
Document.
IFRS does not provide specific guidance on accounting for common
control transactions. Therefore, the Directors have selected an
accounting policy using the 'hierarchy' described in paragraphs
10-12 of IAS 8 Accounting Policies, Changes in Accounting Estimates
and Errors. The hierarchy permits the consideration of
pronouncement of other standard-setting bodies. The Directors have
adopted a policy of accounting for business combinations between
entities under common control in accordance with guidance under US
GAAP 805-10-15. This guidance produces a result that is similar to
pooling. The consolidated accounts have therefore been prepared as
if each of the entities within the Group at 30 September2012 had
been held by Fusionex International Plc from the earlier of 1
October2011 or date of incorporation. The difference between the
carrying value of the investment and nominal value of the shares of
subsidiaries upon consolidation under the merger accounting
principles.
The consolidated financial statements are presented in RM, which
is the Group's presentation currency.
2. Property, plant and equipment
During the year ended 30 September 2013, the Group acquired
assets amounting to RM28,559,175 (2012: RM410,000).
3. Goodwill on consolidation
2013 2012
RM RM
At cost:
At 1 October 2012/2011 558,887 558,887
Less: Impairment losses (9,315) (9,315)
As the end of the year 549,572 549,572
During the financial period, the Group assessed the recoverable
amount of the goodwill and determined that no additional impairment
is required. This assessment was done by comparing the gross profit
to the value of goodwill for the entity whose acquisition gave rise
to the goodwill.
4. Intangible assets
2013 2012
Development expenditure RM RM
At cost:
At 1 October 2012/2011 8,421,581 4,896,286
Addition during the financial
year 6,689,003 3,525,295
15,110,585 8,421,581
Accumulated amortisation:
----------- ----------
At 1 October 2012/2011 855,744 218,627
Addition for the financial year 1,162,184 637,117
2,017,929 855,744
Balance at the end of the year 13,092,656 7,565,837
The intangible assets relate mainly to staff costs.
NOTES TO THE PRELIMINARY ANNOUNCEMENT (CONTINUED)
For the year ended 30 September 2013
5. Share capital
2013 2012
RM RM
New shares issued pursuant
to:
Share swap 18,668,186 -
Admission onto AIM (net of listing 52,788,872 -
expenses)
71,457,058 -
Fusionex International Plc was incorporated on 1 October 2012,
with an authorised share capital of GBP1,000 divided into 1,000
ordinary shares of GBP1.00 each of which 2 ordinary shares of
GBP1.00 each were subscribed by the shareholders.
On 15 October 2012, the Company passed a special resolution to
convert itself to a no par value company with an unlimited share
capital which is divided into ordinary shares with no par
value.
On 14 November 2012, the Board approved the allotment and issue
by the Company, on the date of completion of the Share Swap
Agreement, of an aggregate of 34,999,998 Ordinary Shares, to
certain of the holders of the share capital of Fusionex Corp Sdn.
Bhd. and Adv Fusionex Sdn. Bhd. in consideration for the transfer
of the entire issued share capital of Fusionex Corp Sdn. Bhd. and
Adv Fusionex Sdn. Bhd. respectively to the Company. The
aforementioned 34,999,998 Ordinary Shares were allotted and issued
on 3 December 2012.
On 10 December 2012, the Board approved the allotment and issue
by the Company on 17 December 2012 of 866,947 Placing Shares at the
Placing Price (being the First Tranche Placing Shares and the
Second Tranche Placing Shares) and the allotment, conditional on
Admission, on 17 December 2012 of 7,133,053 Placing Shares (being
the remaining Placing Shares), as well as the issue of these
7,133,053 Placing Shares on 18 December, in each case, at the
Placing Price.
On 10 December 2012, the Board approved the allotment and issue
by the Company, conditional on Admission, of 333,333 Ordinary
Shares at the Placing Price to certain employees of the Group
pursuant to the Employees' Share Scheme. The number of issued
Ordinary Shares immediately following Admission amounted to
43,000,000.
The expenses in relation to the above corporate exercise
amounting to RM6.6 million have been recognised in equity.
NOTES TO THE PRELIMINARY ANNOUNCEMENT (CONTINUED)
For the year ended 30 September 2013
6. Income tax expense
2013 2012
RM RM
At cost:
Current tax 1,534,582 1,488,436
(46,414) 402,196
Deferred tax
1,488,168 1,994,846
Tax expense is recognised based on an annual tax rate for the
full financial year applied to the pre-tax income of the year.
7. Dividends
2013 2012
RM RM
Interim dividend for 30.9.2013: 4,259,408 -
RM0.099 per ordinary share
Interim dividend 1 for
30.9.2012: RM13.60 per
ordinary share - 6,800,000
Interim dividend 2 for
30.9.2012: RM1.00 per ordinary
share - 500,000
4,259,408 7,300,000
NOTES TO THE PRELIMINARY ANNOUNCEMENT (CONTINUED)
For the year ended 30 September 2013
8. Capital commitment
Authorised capital expenditure contracted but not provided for
in the Interim Financial Statements is analysed as follows:-
2013 2012
RM RM
Property 1,127,438 -
9. Earnings per share
The calculation for earnings per share, based on the weighted
average number of shares, is shown in the table below:
Year ended 30 September
2013 2012
RM RM
Profit after tax attributable to owners of the Group 19,011,798 12,739,649
Weighted average number of shares:
Basic 41,940,639 34,999,998*
Diluted 41,940,639 34,999,998*
Earnings per share
Basic 45.30 36.40
Diluted 45.30 36.40
* Based on the number of ordinary shares issued pursuant to the
corporate exercise in relation to admission onto AIM.
NOTES TO THE PRELIMINARY ANNOUNCEMENT (CONTINUED)
For the year ended 30 September 2013
10. Segment 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 as defined
in IFRS 8, in order to allocate resources to the segment and to
assess its performance.
All other segments primarily comprise income and expenses
relating to the Group's administrative functions. Interest income
and interest expense are not allocated to segments, as this type of
activity is driven by the central treasury function, which manages
the cash position of the Group. Accordingly, this information is
not separately reported to the Board for each reportable
segment.
Operating segments are prepared ina manner consistent with the
internal reporting provided to the Executive Directors as its chief
operating decision maker in order to allocate resources to segments
and to assess their performance. Formanagement purposes, the Group
is organised into business units based on the products and services
provided.
Operating segments
Product Services Total
RM RM RM
At 30 September 2013
Revenue 36,939,240 7,483,966 44,423,206
At 30 September 2012
Revenue 21,778,950 9,535,756 31,314,706
Geographical location
Asia
Pacific Europe America Elimination^ Total
At 30 September RM RM RM RM RM
2013
Revenue 40,381,223 10,751,802 3,711,241 (10,421,060) 44,423,206
Result
Segment result
before financing
result and tax 17,138,052 6,362,788 1,575,075 (4,235,834) 20,840,081
Finance costs (340,115)
Income tax (1,488,168)
Profit for the
year 19,011,798
Assets and liabilities
Segmental assets 119,608,436 69,340,899 - - 188,949,335
Non-allocated assets 549,573
Consolidation adjustments (67,743,472)
Total assets 121,755,436
Segmental liabilities 48,014,421 11,833,611 - - 59,848,032
--------------- ------------ ------------ -----------------
Non-allocated liabilities 43,134,397
Consolidation adjustments (67,743,472)
Total liabilities 35,238,957
NOTES TO THE PRELIMINARY ANNOUNCEMENT (CONTINUED)
For the year ended 30 September 2013
10. Segment analysis (continued)
Other segmental reporting
Asia
Pacific Europe America Elimination^ Total
At 30 September RM RM RM RM RM
2013
Capital expenditure:
- tangible assets 28,559,175 - - - 28,559,175
- intangible assets 6,625,462 - - - 6,625,462
Depreciation 485,744 - - - 485,744
Other non-cash expenses
Unrealised foreign
exchange gain (1,007,853) - - - (1,007,853)
Amortisation of
intangible assets 1,152,029 - - - 1,152,029
144,176 - - - 144,176
(#) - Segment assets comprise total current and non-current assets less unallocated assets.
* - Segment liabilities comprise total current liabilities and
non-current liabilities less unallocated liabilities.
^ - Mainly related to Asia Pacific intercompany sales.
NOTES TO THE PRELIMINARY ANNOUNCEMENT (CONTINUED)
For the year ended 30 September 2013
10. Segment analysis (continued)
Asia
Pacific Europe America Elimination Total
At 30 September RM RM RM RM RM
2012
Revenue 23,890,120 8,343,693 2,796,838 (3,715,945) 31,314,706
Result
Segment result
before
financing result
and tax 6,479,408 7,595,947 1,304,978 - 15,380,333
Finance costs (280,828)
Income tax (1,994,846)
Profit for the
year 13,104,659
Assets and
liabilities
Segmental assets 36,045,958 3,213,358 - - 39,259,316
Non-allocated
assets 549,572
Consolidation
adjustments (6,745,642)
Total assets 33,063,246
Segmental
liabilities 15,853,744 5,286,958 - - 21,140,702
Consolidation
adjustments (6,745,642)
Total liabilities 14,395,060
Other segmental reporting
Capital
expenditure:
- tangible
assets 410,316 - - - 410,316
- intangible
assets 3,509,024 - - - 3,509,024
Depreciation 349,680 - - - 349,680
Asia
Pacific Europe America Elimination Total
At 30 September 2012 RM RM RM RM RM
Amortisation of
intangible
assets 634,382 - - - 634,382
940,111 - - - 940,111
(#) - Segment assets comprise total current and non-current assets less unallocated assets.
* - Segment liabilities comprise total current liabilities and
non-current liabilities less unallocated liabilities.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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