TIDMFXI
RNS Number : 6393H
Fusionex International PLC
21 May 2014
For immediate release 21 May 2014
Fusionex International plc
("Fusionex" or "the Company" or "the Group")
Interim results for the six months ended 31 March 2014
Fusionex, an award-winning and market leading international
provider of enterprise software solutions, specialising in Business
Intelligence and Big Data Analytics, is pleased to announce its
interim results for the six months ended 31 March 2014.
Financial Highlights:
Item (MYR million) 6 months ended 6 months ended Change (%)
(unless stated otherwise) 31 March 2014 31 March 2013
----------------------------- --------------- --------------- -----------
Revenue 25.0 18.5 +35%
----------------------------- --------------- --------------- -----------
Gross Profit 19.0 13.5 +41%
----------------------------- --------------- --------------- -----------
EBITDA* 10.1 7.4 +36%
----------------------------- --------------- --------------- -----------
Earnings per share** 17.5 sen 14.6 sen +20%
----------------------------- --------------- --------------- -----------
Dividend 2.05 pence 2.00 pence +2.5%
----------------------------- --------------- --------------- -----------
Cash and bank balances
(including fixed deposits) 49.5 49.6 -0.2%
----------------------------- --------------- --------------- -----------
* EBITDA (MYR million) is derived from
PBT (2014: 8.18; 2013: 6.54) + amortisation of intangible assets
(2014: 1.08; 2013: 0.48) + depreciation of property, plant and
equipment (2014:0.44; 2013: 0.22) +interest expenses (2014: 0.35;
2013 0.14)
** weighted average number of ordinary shares during the period
was 43,000,000 (6 months to March 2013: 39,571,000)
Operating Highlights:
-- Continued deployment of Fusionex GIANT ("GIANT") following its launch in December 2013
o Successfully converted three pilot clients for GIANT to 'live'
production clients
o Continue to drive product development and accelerate R&D
roadmap to further enrich GIANT's functionality
-- Progress made in establishing partner channel network with leading Big Data providers
o Partner channel network now includes Cloudera, Hortonworks and
Revolution Analytics
o Also newly recruited Avnet, one of the world's largest IT
distributors and listed on the NYSE into Fusionex's partner channel
network
-- Strong new customer traction during the first six months of current financial year
o New customer wins include a multi-million dollar deal with a
client with global operations in the travel, leisure and
hospitality sectors, a global hypermarket chain, and a number of
contracts from clients within the aviation, retail, oil & gas,
travel and hospitality sectors
o New business order book remains strong
-- An additional three GIANT contracts have been secured
-- 40 per cent of the revenue growth for the period coming from
GIANT
-- Won the 2013 highly coveted Asia Pacific ICT Alliance
(APICTA) Award for Best Application & Platform
-- Appointment of four experienced sales executives originating
from IBM, Microsoft, Huawei and Citibank respectively
-- Trading remains strong and in line with market expectations
Ivan Teh, Chief Executive of Fusionex commented:
"We are delighted to announce another set of strong results,
underpinned by accelerating growth from new business wins for our
new flagship product GIANT. We continue to invest in the best
people and our product development strategy, to stay ahead of the
curve and to be the leading big data analytics provider.
Our sales pipeline is increasing and we expect further momentum
as the Group continues to expand its partner channel network with
some of the leading companies. We are grateful for the support
received from our investors and remain confident in both our
products and the future trading prospects of the Group."
For further details:
Fusionex
Ivan Teh, Chief Executive Officer Through Buchanan
Yuen Choong Lai, Chief Financial Officer
Panmure Gordon
Fred Walsh, Alina Vaskina, 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 and Financial Review
Fusionex is pleased to report another strong six months of
trading for the Group. Fusionex has continued to develop its
products and market reach, highlighted by the launch of GIANT, its
Big Data Analytics software, in December 2013. This coupled with
the continuation of the Group's strong financial performance and
the on-going development of its software solutions leaves the Group
well placed to continue this success during the remainder of the
current financial year.
Revenue during the period grew by 35% to MYR 25.0 million (2013:
MYR 18.5 million), whilst EBITDA grew to MYR 10.1 million (2013:
MYR 7.4 million).
As announced on 28 January, Fusionex declared a dividend of
approximately MYR 4.79 million equating to MYR 0.11 per share to
shareholders on the register as at 6 February 2014. The payment was
made on 28 February 2014.
Operational and Financial Update
The Group continues to see strong levels of demand and traction
for its products and offerings. The Group's revenue in the first
half of its financial year increased substantially (+35%) compared
to the same period last year, while the Group's PBT grew from MYR
6.5 million to MYR 8.2 million (+26%) over the same period. The
slightly lower PBT margin (33% for H1 2014, compared to 35% for H1
2013) is due to the increased investment in marketing spend,
product development and the Group's expansion into new
territories.
New customer wins in the six months to 31 March 2014
included:
-- Multi-million dollar deal with a client with global
operations in the travel, leisure and hospitality sectors
-- A contract with a large global hypermarket chain
-- Further contracts and wider traction within the media and marketing sector
-- A number of multi-year contracts with customers from the
aviation, retail, oil and gas, travel and hospitality, utilities,
financial services as well as property development and property
management sectors
In addition to this strong new business momentum, the Group
continued to gain market traction with its Big Data Analytics
software solution GIANT. During the first 6 months of the current
financial year, the Group has successfully converted all three of
its pilot clients for GIANT to 'live' production clients.
Furthermore, the company has won an additional three new GIANT
mandates in the property, hospitality and media sectors.
Elsewhere, the Company continues to engage proactively with a
number of existing customers regarding GIANT and is confident of
gaining new clients in other sectors.
Recently, Fusionex has also established a strategic partnership
with Avnet, a fortune 500 group listed on the NYSE to offer both on
premise and a cloud based GIANT solution. The partnership focuses
on a jointly beneficial approach where both parties will be able to
bundle their respective products and packages, providing customers
with peace of mind that the bundled package end product would be
jointly certified by Fusionex and Avnet.
With global estimates of the Big Data global market place set to
increase over the next 5 years, the demand for cloud services and
Software-as-a-service (SaaS) will help to accelerate this
growth.
Gartner reports that, with the global economy showing signs of a
gradual recovery, worldwide IT spending is on pace to total USD 3.8
trillion in 2014. Gartner has also commented that growing interest
in Big Data solutions will continue to positively impact Business
Intelligence spending across Asia Pacific in 2014 and beyond.
With many current Big Data initiatives still focused on
improving business processes and more importantly customer
engagement, Fusionex's GIANT offering sits at the core of such
initiatives. The recent growth in data coupled with the need for
near real-time insights presents key decision makers with a
tremendous challenge, thus the business benefit of Big Data
analytics has never been greater.
Recruitment
The Group has further strengthened its Enterprise Sales Team
through the hiring of four experienced sales executives originating
from IBM, Microsoft, Huawei and Citibank respectively. These new
hires will be focused on customer generation in both existing
markets as well as developing new client opportunities in new
markets and will further help support the Group as it moves into
new geographies and scales up sales channels for its offerings.
The Group expects to further expand its sales channels during
the current financial year as demand for its products
increases.
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 ahead of the market. Since Fusionex
GIANT's launch in December 2013, the Group has continued with its
accelerated R&D roadmap to further enrich Fusionex GIANT's
functionality.
Fusionex has also won the 2013 highly coveted Asia Pacific ICT
Alliance (APICTA) Award for Best Application & Platform in this
period. APICTA is the largest ICT alliance in the Asia Pacific
region, currently comprising of more than 15 key member economies.
The awards are the most prestigious and highly rated ICT awards in
the region.
During the period, the Group moved into its state of the art new
office, an office designed by Fusionex colleagues. The office has
been uniquely designed to inspire innovation and creativity. It
reinforces the Group's position as a leading global software
business and an employer of choice, enabling Fusionex to attract
and retain high quality talent.
Growth Strategy
Fusionex operates from a well-established base within the Asia
Pacific region.
Alongside the opportunities in the Asia Pacific region, the
Group expects to build and maintain its business within the more
mature markets in Europe and the United States.
Management is focused on product development in order to expand
its software solutions portfolio as well as leverage new
opportunities within Fusionex's existing client base by encouraging
greater levels of cross-selling and up-selling.
In addition to its existing organic growth drivers which
underpin the Groups strong sales momentum to date, management
believes that further opportunities exist through its partner
channel network. Therefore the Group has established key technology
partnerships including with established and leading Big Data
platform providers Cloudera and Hortonworks, as well as other
leading organisations such as Revolution Analytics and Avnet. The
Company plans to recruit additional channel partners over the
coming months with the core aim of widening the Group's sales
network and market reach.
Current Trading and Outlook
The last six months has seen the Group deliver a robust
financial performance with demand for its products and offerings
continuing to gather momentum.
The Board remains confident that the continued investment in
sales as well as research and development teams will accelerate
growth, and is confident that results for year ended 30 September
2014 will be at least in line with market expectations.
FUSIONEX INTERNATIONAL PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 March 2014
1.10.2012
1.10.2013 to 1.10.2012
to 31.3.2013 to
31.3.2014 Unaudited 30.9.2013
Unaudited (Restated) Audited
Note RM RM RM
Revenue 25,015,489 18,473,025 44,423,206
Cost of sales (6,027,217) (5,022,167) (10,090,185)
Gross profit 18,988,272 13,450,858 34,333,021
Other income 140,282 205,668 2,183,063
19,128,554 13,656,526 36,516,084
Other expenses (10,596,418) (6,976,233) (15,676,003)
Finance costs (347,268) (137,441) (340,115)
Profit before taxation 8,184,868 6,542,852 20,499,966
Income tax expense 2 (654,229) (785,202) (1,488,168)
Profit after taxation 7,530,639 5,757,650 19,011,798
Other comprehensive income/(expenses) 579,807 (2,585,253) 307,031
Total comprehensive income
for the
financial period 8,110,446 3,172,397 19,318,829
Profit after tax attributable
to:
Owners of the Group 7,530,639 5,757,650 19,011,798
Total comprehensive income attributable
to:
Owners of the Group 8,110,446 3,172,397 19,318,829
Earnings per share attributable
to owners of the Group
Basic, sen 3 17.51 14.55 45.30
Diluted, sen 3 17.51 14.55 45.30
FUSIONEX INTERNATIONAL PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
For the six months ended 31 March 2014
31.3.2013
31.3.2014 Unaudited 30.9.2013
Unaudited (Restated) Audited
Note RM RM RM
ASSETS
NON-CURRENT
ASSETS
Property,
plant and
equipment 4 37,082,328 8,005,134 35,434,770
Goodwill on
consolidation 5 549,572 549,572 549,572
Intangible
assets 6 17,189,491 9,068,923 13,092,656
54,821,391 17,623,629 49,076,998
CURRENT ASSETS
Trade
receivables 9,225,587 9,788,537 6,626,987
Other
receivables,
deposits
and
prepayments 3,101,993 2,867,715 824,188
Amount owing
by contract
customers 4,259,123 2,971,802 2,742,394
Tax
recoverable 151,630 - 93,343
Cash and cash
equivalents 49,491,421 49,597,963 62,391,526
66,229,754 65,226,017 72,678,438
ASSET HELD FOR
SALE 7 3,490,063 - -
---------------------------------------------------------------------------- -------------------------------------------------------------------------- -------------
TOTAL ASSETS 124,541,208 82,849,646 121,755,436
EQUITY AND
LIABILITIES
Share capital 71,457,058 71,457,058 71,457,058
Merger reserve 8 (17,668,186) (17,668,186) (17,668,186)
Foreign
exchange
translation
reserve 9 1,269,928 (1,740,788) 690,121
Retained
profits 34,772,765 18,783,338 32,037,486
TOTAL EQUITY 89,831,565 70,831,422 86,516,479
NON-CURRENT
LIABILITIES
Long-term
borrowings 26,281,511 6,116,667 26,776,464
Deferred tax
liabilities 1,115,026 1,161,389 1,117,157
27,396,537 7,278,056 27,893,621
CURRENT
LIABILITIES
Payables and
accruals 5,144,449 3,025,386 5,521,382
Short-term
borrowings 992,370 311,694 968,783
Provision for
taxation 1,176,287 1,403,088 855,171
7,313,106 4,740,168 7,345,336
TOTAL
LIABILITIES 34,709,643 12,018,224 35,238,957
TOTAL EQUITY
AND
LIABILITIES 124,541,208 82,849,646 121,755,436
FUSIONEX INTERNATIONAL PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 March 2014
<- - - - - - - - Non distributable
- - - - - - - -> Distributable
Share Merger Foreign Retained Attributable Total
capital reserve exchange profits to owners equity
translation of the
reserve Group
Note RM RM RM RM RM RM
(Unaudited)
Balance at
1 October 2012 1,000,000 - 383,090 17,285,096 18,668,186 18,668,186
Profit after
taxation - - - 5,757,650 5,757,650 5,757,650
Other comprehensive
expenses,
net of tax
- Foreign currency
translation
differences
for
foreign operations - - (2,123,878) - (2,123,878) (2,123,878)
Total comprehensive
income for
the
financial
period - - (2,123,878) 5,757,650 3,633,772 3,633,772
Issuance of
shares 70,457,058 (17,668,186) - - 52,788,872 52,788,872
Dividend - - - (4,259,408) (4,259,408) (4,259,408)
Balance at
31 March 2013
(restated) 71,457,058 (17,668,186) (1,740,788) 18,783,338 70,831,422 70,831,422
----------- --------------- ---------------- ------------- -------------- ----------------
(Unaudited)
Balance at
1 April
2013 71,457,058 (17,668,186) (1,740,788) 18,783,338 70,831,422 70,831,422
Profit after
taxation - - - 13,254,148 13,254,148 13,254,148
Other comprehensive
income, net
of tax
* foreign currency
translation
differences
for
foreign operations - - 2,430,909 - 2,430,909 2,430,909
Total comprehensive
income for
the
financial
period - - 2,430,909 13,254,148 15,685,057 15,685,057
Balance at 30
September 2013 71,457,058 (17,668,186) 690,121 32,037,486 86,516,479 86,516,479
----------- --------------- ---------------- ------------- -------------- ----------------
FUSIONEX INTERNATIONAL PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 March 2014
<- - - - - - - - Non distributable
- - - - - - - -> Distributable
Share Merger Foreign Retained Attributable Total
capital reserve exchange profits to owners equity
translation of the
reserve Group
Note RM RM RM RM RM RM
(Unaudited)
Balance at
1 October 2013 71,457,058 (17,668,186) 690,121 32,037,486 86,516,479 86,516,479
Profit after
taxation - - - 7,530,639 7,530,639 7,530,639
Other comprehensive
income, net
of tax
* foreign currency
translation
differences
for
foreign operations - - 579,807 - 579,807 579,807
Total comprehensive
income for
the
financial
period - - 579,807 7,530,639 8,110,446 8,110,446
Dividend 10 - - - (4,795,360) (4,795,360) (4,795,360)
Balance at 31
March 2014 71,457,058 (17,668,186) 1,269,928 34,772,765 89,831,565 89,831,565
----------- -------------- -------------- ------------ ------------- --------------
FUSIONEX INTERNATIONAL PLC
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 31 March 2014
1.10.2013 1.10.2012 1.10.2012
to 31.3.2014 to 31.3.2013 to 30.9.2013
Unaudited Unaudited Audited
RM RM RM
Cash flow from operating activities
Profit before taxation 8,184,868 6,542,852 20,499,966
Adjustments for:-
Amortisation of intangible assets 1,108,878 484,572 1,152,029
Depreciation of property, plant
and equipment 435,049 217,317 485,744
Interest expenses 347,268 137,441 340,115
Unrealised (gain)/loss on foreign
exchange (56,881) 117,042 -
Interest income (109,621) (64,174) (343,021)
-------------------- ----------------- ------------------
Operating profit before working
capital changes 9,909,561 7,435,050 22,134,833
Increase in trade and other receivables
deposits and prepayments (4,876,405) (7,894,162) (2,572,043)
Decrease in payables (376,933) (1,948,425) 2,247,579
Increase in amount owing by contract
customers (1,516,729) (580,777) (351,369)
-------------------- ----------------- ------------------
Cash flow used in operations 3,139,494 (2,988,314) 21,459,000
Interest paid (347,268) (137,441) (340,115)
Interest received 109,621 64,174 343,021
Income tax paid (393,531) (254,054) (1,642,512)
-------------------- ----------------- ------------------
Net cash flow used in operating
activities 2,508,316 (3,315,635) 19,819,394
-------------------- ----------------- ------------------
Cash flow used in investing activities
Purchase of plant and equipment (5,572,670) (861,112) (28,559,175)
Development costs on intangible
assets (5,141,518) (1,966,287) (6,625,462)
-------------------- ----------------- ------------------
Net cash flow used in investing
activities (10,714,188) (2,827,399) (35,184,637)
-------------------- ----------------- ------------------
Cash flow (used in)/from financing
activities
-------------------- ----------------- ------------------
Repayment to related parties - (1,224,486) (1,224,486)
Dividend paid (4,795,360) (4,259,400) (5,959,408)
Drawdown of term loans - - 21,440,000
Repayment of term loans (420,636) (104,232) (181,258)
(Repayment)/Drawdown of hire purchase
payables, net (50,730) 372,106 326,018
Proceeds from issuance of share
capital - 53,250,247 52,788,872
-------------------- ----------------- ------------------
Net cash flow (used in)/from financing
activities (5,266,726) 48,034,235 67,189,738
-------------------- ----------------- ------------------
Net (decrease)/increase in cash
and cash equivalents (13,472,598) 41,891,201 51,824,495
Cash and cash equivalents at beginning
of the
financial period/year 62,391,526 10,313,386 10,313,386
Effects of foreign exchange rate
changes, net 572,493 (2,606,624) 253,645
-------------------- ----------------- ------------------
Cash and cash equivalents at end
of the
financial period/year 49,491,421 49,597,963 62,391,526
-------------------- ----------------- ------------------
FUSIONEX INTERNATIONAL PLC
Notes to the Condensed Consolidated Interim Financial
Statements
For the six months ended 31 March 2014
1. Basis of preparation
The condensed consolidated interim financial statements
("Interim 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").
The Interim Financial Statements are unaudited and have been
prepared in accordance with AIM Rules for Companies and IAS 34
'Interim Financial Reporting' as adopted by the EU and should be
read in conjunction with the annual financial statements for the
year ended 30 September 2013, which have been prepared in
accordance with IFRS adopted by the European Union.
The individual financial information of each entity is measured
and presented in the currency of the primary economic environment
in which the entity operates (its functional currency). The Interim
Financial Statements of the Group are presented in Ringgit Malaysia
(RM), which is the presentation currency for the Interim Financial
Statements. The functional currency of each of the individual
entity is the local currency of each individual entity.
Going concern
As at 31 March 2014, the Group had net assets of RM89,831,565
(31 March 2013: RM70,831,422; 30 September 2013: RM86,516,479) as
set out in the Interim Financial Statements above. Following the
admission of the ordinary shares to trading on AIM, Fusionex
International Plc has considerable financial resources. As a
consequence, the Directors believe that Fusionex International Plc
and the Group are well placed to manage its business risks
successfully and the Directors have reasonable expectations that
the Group have sufficient working capital available for its present
requirements that is for the next 12 months from the date of this
report. Accordingly, they continue to adopt the going concern basis
in preparing the historical financial information.
2. Income tax expense
Tax expense is recognised based on management's best estimate of
the weighted average annual tax rate expected for the full
financial year applied to the pre-tax income of the interim period.
The Group's consolidated effective tax rate in respect of
continuing operations for the six months ended 31.3.2014 was lower
that the Malaysian statutory tax rate of 25% (six months ended
30.3.2013: 25%) caused mainly by the following factors:-
i) effects of lower tax rates in certain tax jurisdictions; and
ii) effects of certain income not subject to tax.
3. Earnings per share
The calculation for earnings per share, based on the weighted
average number of shares, is shown in the table below:
1.10.2013 1.10.2012 1.10.2012
to to to
31.3.2014 31.3.2013 30.9.2013
Unaudited Unaudited Audited
Net profit for the financial period
after taxation attributable to owners
of the Group 7,530,639 5,757,650 19,011,798
Weighted average number of ordinary
shares for basic earnings per share
('000) 43,000 39,571 41,941
Weighted average number of ordinary
shares for diluted earnings per
share ('000) 43,000 39,571 41,941
----------- ----------- -----------
Earnings per share (sen), basic
and diluted 17.51 14.55 45.30
----------- ----------- -----------
4. Property, plant and equipment
Acquisitions
During the six months ended 31.3.2014, the Group acquired assets
costing RM5,573,000 (31.3.2013: RM861,000; 30.9.2013:
RM28,559,000).
5. Goodwill on consolidation
31.3.2014 31.3.2013 30.9.2013
Unaudited Unaudited Audited
RM RM RM
At cost:
At 1 October 2013/2012 558,887 558,887 558,887
Less: Impairment losses (9,315) (9,315) (9,315)
As the end of the period/year 549,572 549,572 549,572
During the financial period, the Group assessed the recoverable
amount of the goodwill and determined that no additional impairment
is required.
6. Intangible assets
Development expenditure
31.3.2014 31.3.2013 30.9.2013
Unaudited Unaudited Audited
RM RM RM
At cost:
At 1 October 2013/2012 15,110,585 8,421,582 8,421,582
Addition during the financial
period/year 5,141,518 1,966,287 6,625,462
Translation differences 99,884 23,105 63,541
20,351,987 10,410,974 15,110,585
Accumulated amortisation:
------------ ------------ ------------
At 1 October 2013/2012 (2,017,929) (855,745) (855,745)
Addition for the financial
period/year (1,108,878) (484,572) (1,152,029)
Translation differences (35,689) (1,734) (10,155)
(3,162,496) (1,342,051) (2,017,929)
Balance at the end of the
period/year 17,189,491 9,068,923 13,092,656
The intangible assets relate to staff costs.
7. Asset held for sale
On 23 December 2013, the Group has entered into a sales and
purchase agreement for the disposal of an office building. At the
end of the current reporting period, the asset has been presented
in the consolidated statement of financial position as "Asset held
for sale". The disposal is expected to be completed by the end of
the financial year.
8. Merger reserve
The merger reserve arose from the difference between the
carrying value of the investment and nominal value of the shares of
subsidiaries upon consolidation under the merger accounting
principles.
9. Foreign exchange translation reserve
The foreign exchange translation reserves arose from the
translation of the financial statements of foreign subsidiaries and
are not distributable by way of dividends.
10. Dividends
1.10.2013 1.10.2012 1.10.2012
to to to
31.3.2014 31.3.2013 30.9.2013
Unaudited Unaudited Audited
RM RM RM
Interim tax-exempt dividend
for
31.3.2014: 10.87 sen (31.3.2013/
30.9.2013: 9.9 sen) per
ordinary
share 4,795,360 4,259,408 4,259,408
11. Related party disclosures
Details of related party transactions in respect of the year
ended 30 September 2013 are contained in Note 27 to the
consolidated financial statements of the Group's 2013 annual
report. The Group continued to enter into transactions in the
normal course of business with its associates and other related
parties during the period. There were no material transactions with
related parties in the first half of 2014 or changes to
transactions with related parties disclosed in the 2013
consolidated financial statements that had a material effect on the
financial position or the performance of the Group.
12. Capital commitment
Authorised capital expenditure contracted but not provided for
in the Interim Financial Statements is analysed as follows:-
31.3.2014 31.3.2013 30.9.2013
Unaudited Unaudited Audited
RM RM RM
Property - 26,662,000 -
Furniture and fittings and renovation 697,538 - 1,127,438
13. Risks relating to the Group and its business
The 2013 group annual report and accounts describes the risks
that could impact the group's performance. These remain unchanged
since the annual report was published and accordingly are valid for
these interim financial statements. The group operates a structured
risk management process, which identifies and evaluates risks and
uncertainties and reviews mitigation activity.
14. 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 their products and
services provided.
Product Services Total
RM RM RM
At 31 March 2014
Revenue 21,026,980 3,988,509 25,015,489
At 31 March 2013
Revenue 13,108,049 5,364,976 18,473,025
At 30 September
2013
Revenue 36,939,240 7,483,966 44,423,206
Geographical location
Asia Europe America Elimination^ Total
At 31 March 2014 RM RM RM RM RM
(Unaudited)
Revenue 22,903,114 5,348,904 2,374,035 (5,610,564) 25,015,489
Result
Segment result before
financing result
and tax 5,982,266 1,766,039 783,831 - 8,532,136
Finance costs (347,268)
Income tax (654,229)
Profit for the year 7,530,639
Assets and liabilities
Segmental assets 160,561,055 73,757,277 - 234,318,332
Non-allocated assets 549,572
Consolidation adjustments (110,326,696)
Total assets 124,541,208
Segmental liabilities 86,232,792 11,518,977 - 97,751,769
Non-allocated liabilities 47,284,570
Consolidation adjustments (110,326,696)
Total liabilities 34,709,643
Other segmental
reporting
Capital expenditure:
- tangible assets 5,572,670 - - - 5,572,670
- intangible assets 5,141,518 - - - 5,141,518
Depreciation 435,049 - - - 435,049
Other non-cash expenses
Unrealised foreign
exchange gain (56,881) - - - (56,881)
------------ ---- ---- ---- ------------
Amortisation of
intangible assets 1,108,878 - - - 1,108,878
------------ ---- ---- ---- ------------
^ Related to Asia Pacific intercompany sales
Asia Europe America Elimination^ Total
RM RM RM RM RM
At 31 March 2013
(Unaudited)
Revenue 14,476,028 6,002,419 1,184,368 (3,189,790) 18,473,025
Result
Segment result before
financing result
and tax 6,649,475 2,491,124 729,484 (3,189,790) 6,680,293
Finance costs (137,441)
Income tax (785,202)
Profit for the year 5,757,650
Assets and liabilities
Segmental assets 65,437,242 55,049,601 - 120,486,843
Non-allocated assets 549,572
Consolidation adjustments (38,186,769)
Total assets 82,849,646
Segmental liabilities 43,661,534 7,946,539 - 51,608,073
Non-allocated liabilities (1,403,080)
Consolidation adjustments (38,186,769)
Total liabilities 12,018,224
Other segmental
reporting
Capital expenditure:
- tangible assets 861,112 - - - 861,112
- intangible assets 1,966,287 - - - 1,966,287
Depreciation 217,317 - - - 217,317
Other non-cash expenses
Unrealised foreign
exchange gain 117,042 - - - 117,042
---------- ---- ---- ---- ----------
Amortisation of
intangible assets 484,572 - - - 484,572
^ Related to Asia Pacific intercompany sales
Asia Europe America Elimination^ Total
RM RM RM RM RM
At 30 September
2013
(Audited)
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
Other segmental
reporting
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
^ Related to Asia Pacific intercompany sales
Major customers
Revenue from 2 (31.3.2013: 2; 30.9.2013: 2) major customers
amounting to RM5,572,000 (31.3.2013: RM4,886,000; 30.9.2013:
RM11,335,000) arose from sales derived from Asia Pacific and
Europe.
15. Comparative Information
The following figures have been reclassified to conform with
the presentation of the current financial period and should
be read in conjunction with the annual financial statements
for the year ended 30 September 2013:
31 March 2013:
As previously
As restated reported
RM RM
Consolidated Statement of Financial Position (Extract):
Share capital 71,457,058 71,918,433
Foreign exchange translation
reserve (1,740,788) (2,202,163)
Consolidated Statement of Comprehensive Income
(Extract):
Cost of sales (5,022,167) (8,760,286)
Other expenses (6,976,233) (3,238,114)
---------------- --------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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