TIDMFXI
RNS Number : 5171M
Fusionex International PLC
21 January 2016
21 January 2016
Fusionex International plc
("Fusionex" or "the Company" or "the Group")
Preliminary results for the year ended 30 September 2015
Fusionex, an award-winning and market leading international
software provider specialising in Analytics, Big Data and the
Internet of Things ("IoT"), is pleased to announce its full year
results for the year ended 30 September 2015.
Financial highlights:
-- Results ahead of expectations underpinned by strong sales of
Fusionex's Big Data product GIANT
-- YoY revenue growth of +35% (RM77.0 million)
-- YoY gross profit growth of +33% (RM58.9 million)
-- EBITDA* growth of +29% (RM35.0 million)
-- Net profit** growth of +28% (RM24.9 million)
-- EPS growth of +28% (RM0.58)
-- Cash and cash equivalents of RM57.7 million before
post-period fund raise of GBP14.0 million (RM86.8 million)
-- The Board intends to recommend a dividend
*EBITDA of RM35.0 million is derived from PBT (RM28.4 million) +
amortisation of intangible assets (RM4.6 million) + depreciation of
property, plant and equipment (RM2.2 million) - net interest income
(RM0.2 million). This includes the gain on disposal of fixed assets
amounting to RM2.0 million.(2014: RM1.4million)
**Net Profit of RM24.9 million includes the gain from the
disposal of an office unit amounting to RM2 million.
Operational highlights:
-- Sales of GIANT ahead of expectations, bringing the total
cumulative number of GIANT clients (new and recurring customers) to
36 (2014: 12)
o Revenue growth across Asia Pacific, Europe and America
o Continued investment in R&D, including enriched
functionality for GIANT, underpinning sales momentum
-- Excellent progress in building channels to market
o New channel partnership with Mesiniaga Berhad, a leading ICT
solutions provider and systems integrator in Malaysia, signed in H2
of FY2015.
o Significant strategic partnership secured with Dell to provide
GIANT to customers in Asia post-period end in November 2015
o Over 30% of revenue came through our channel partners
-- Continued sales momentum maintained into new financial year
o New GIANT wins with Asian hospital bringing Fusionex its first
win for the Healthcare Analytics market.
o New GIANT win for Open Data post-period end in January
2016
-- Significantly over-subscribed placing of 4,300,000 new
Ordinary Shares completed post-period end
o Funds are being used to dramatically accelerate revenue growth
and increase market share
-- Positive and exciting outlook for Fusionex for 2016 and beyond
Ivan Teh, Chief Executive of Fusionex, commented:
"2015 saw Fusionex starting to leverage the foundations laid to
deliver better than expected growth and we anticipate this trend
accelerating in 2016. We remain focused on developing our business
and product offerings to ensure that we are in pole position this
year to drive Big Data innovation and adoption amongst our clients.
We continue to invest in research and development as well as the
Fusionex culture, brand and its people, building both our direct
and indirect channels to market, in order to maximise the
significant potential for our business.
The new financial year has started on a very strong note with
good new wins already secured for GIANT, as announced, coupled with
a very strong pipeline, and therefore the outlook for 2016 and
beyond is very positive and exciting for Fusionex."
For further details:
Fusionex Through Buchanan
Ivan Teh, Chief Executive Officer
Yuen Choong Lai, Chief Financial Officer
Darren Hopkins, Director for Investor Relations & Corporate Development
Panmure Gordon
Fred Walsh, Alina Vaskina (Investment Banking)
Erik Anderson, Tom Nicholson, Charles Leigh-Pemberton (Corporate Broking) 020 7886 2500
RBC Capital Markets
Pierre Schreuder, Ema Jakasovic 020 7653 4000
Buchanan
Sophie McNulty, Gabriella Clinkard, Stephanie Watson
www.buchanan.uk.com 020 7466 5000
Chairman's Statement
I am delighted to report on another very successful year for our
Company, during which we have once again delivered positive results
ahead of market expectations. With Asia Pacific accounting for the
bulk of our sales, revenues have grown 35% to RM77.0 million with
EBITDA increasing by 29% to RM35.0 million. We have also maintained
a strong balance sheet with a healthy operating cash flow, despite
the substantial investments that we have made in our technology,
infrastructure and people over the past year to support our
forecast growth levels in the years ahead. Our results have been
driven by sales of our flagship Big Data product, GIANT, which has
seen a very strong take-up from customers, with 36 cumulative
clients during the year against an original objective of 30. It is
also very pleasing to note the calibre of these clients, many of
them blue-chip, global organisations, which once again demonstrates
the quality and the unique characteristics of our GIANT
product.
During the year we continued to make significant investments
across divisions including sales, marketing and, in particular,
R&D to ensure we maintain and improve the competitive
positioning of our core products. The benefits of this have been
evidenced by the quality and quantity of the new business wins
which we have been able to achieve during the year. Additionally, I
am very pleased to report that our major initiative to develop the
indirect sales partner channel has seen very positive results.
Development in this aspect of our business is critical to driving
sales growth, and I am, therefore, particularly pleased to note
that the second half of the year showed strong momentum in this
area. Since the year end we have also announced a strategic
partnership with Dell, about which we are very excited, and we are
confident that it will generate significant new business
opportunities by combining the skills from both companies and
creating a powerful, scalable and efficient Big Data Analytics
platform.
Fusionex's achievements in the IT industry have once again been
recognised this year. Fusionex has won the Microsoft Global
Partnership award for an unprecedented fourth consecutive year. We
were also the winner of the highly coveted Asian-Oceania Computing
ICT Organisation ("ASOCIO") award for Outstanding ICT Company.
Additionally, Fusionex was a finalist in the AIM International
Company of the Year 2015 award, demonstrating the high regard in
which the Company is held amongst the investment community and our
success in completing our stated goals since our London IPO. This
was also underpinned by the heavily oversubscribed share placement
in October 2015 to support the Company's plan to accelerate sales
growth in the years ahead.
With regard to the market in which we operate, leading
technology research groups such as Gartner, Forrester and IDC all
predict that data analytics will continue to be a key focus
globally. More and more companies are realising the importance of
data analytics and "data-driven decision making" as being the key
to success and survival of companies in this modern era. The
emergence of the phenomenon of the Internet of Things ("IoT") will
also propel Big Data Analytics to even greater heights, with the
number of connected devices predicted to grow from 3 billion to 25
billion in three years' time. This dynamic environment will provide
the impetus and catalyst which will continue to drive the need for
Big Data Analytics where demand is growing exponentially and where
Fusionex remains a key driving force in the industry.
Overall 2015 was another year of very positive progress for your
Company, with strong momentum in the second half of the year as
GIANT became fully deployed and built substantial momentum and
industry recognition. We are excited by the opportunities facing
the Company in many different customer sectors and through both
direct and indirect sales channels. Our Board plans to continue to
invest in all areas of the business to ensure we are well placed to
take full advantage of these.
I am confident that we will be able to deliver another
successful outcome this year and I would like to take this
opportunity to thank all of our staff for their outstanding
achievements and hard work over the past year. I would also like to
thank you, our shareholders, for your continued support.
Chief Executive's Review
Overview
The 2015 financial year showed significant progress for
Fusionex, building on the foundations put in place in 2014. Our Big
Data Analytics product, Fusionex Insights (GIANT), continued to go
from strength to strength, driven by the accelerating interest in
Big Data Analytics across a wide range of sectors and underpinned
by our growing number of channel partnerships. We ended the year
with a record number of enterprise client wins for GIANT, a total
of 36 cumulative clients, which was well ahead of our target of 30
GIANT clients by the end of FY2015. This also led to our FY2015
results being ahead of market expectations.
Our Product Offerings
Having achieved considerable success in 2014 for the then new
GIANT product, we started the year under review (FY2015) with a
bang to accelerate the adoption of our GIANT Big Data Analytics
product. It is particularly pleasing, therefore, to see that we
exceeded our targets by every measure. Key highlights include
marquee contract wins such as those from clients of varied
verticals including: Brother Industries, Intel, AEON, as well as
the announced Smart Government initiative, just to name a few.
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We also benefited from quality channel partnerships in FY2015
with the likes of Avnet, EMC, Microsoft/Revolution Analytics, etc.
In FY2015, over 30% of revenue has come through our channel
partners, demonstrating the effectiveness of the channel partner
programme that we have developed, a marked increase from the
previous year. This has led to a change in profile of our
receivables due to the strategic development of our sales model,
the success of which has been demonstrated by our new and exciting
partner channels, which are fundamental to the next stage of our
growth. It is noteworthy that we have continued to build our
channels to market, with a new partnership during the year
announced with Mesiniaga Berhad, a leading ICT solutions provider
and systems integrator in Malaysia, listed on the Main Market of
Bursa Malaysia, and a new strategic partnership post-period with
Dell, a global leading technology business, to provide its
customers in Asia with GIANT.
Our GIANT contracts are typically multi-year deals; clients are
attracted by the ability of GIANT to deliver Big Data initiatives
easily and flexibly in any environment, whether on premises, in the
Cloud or via a hybrid of the two. A key driver for our clients is
the need for their employees to be able to access virtually any
data source, and translate such data into actionable insights
delivering business value. We have again invested in GIANT during
the year to enhance its functionality, usability and reach further
in line with our vision and market demands.
The Company continues to invest significantly in R&D as we
build out new features for GIANT. GIANT is all about discovering
and actioning on data. At the forefront, the GIANT user experience
is elegant, simple and self-service oriented. Behind the scenes,
Fusionex's engineering masks the underlying technology complexity,
allowing GIANT to effectively address the core challenges of Big
Data. Masking the complexity allows Fusionex to address the
frustrations that Big Data Generation 1 customers have with the
complexities of generating return on investments. GIANT provides
the full spectrum of analytics ranging from descriptive analytics
(i.e. what happened?), advanced visualisation and diagnostic
analytics (i.e. why did it happen?), predictive analytics (sharing
what could happen) as well as prescriptive analytics (suggested
courses of action based on analytics). This allows for a speedy,
simple, seamless transition that masks the complexity of the Apache
Hadoop environment, amplifying the user-friendly nature of the
product. We believe that these differentiators will continue to
drive growth and an even greater adoption rate moving forward.
As the Company moves into the new financial year, trading is
strong and rapidly accelerating. The Company has recorded a number
of notable enterprise wins post-period which have been recently
announced.
The Big Data Market Backdrop and the Internet of Things
The blue-chip nature of our client base and our channel
partners, mentioned above, reflects a marked and growing demand for
effective, differentiated Big Data Analytics products. Strong
growth in demand is expected to continue, with the Big Data
technology and services market forecasted to achieve a compound
annual growth rate ("CAGR") of 23.1% to 2019, where annual spending
is predicted to reach $48.6 billion in 2019 (source: IDC).
This demonstrates the scale of the market opportunity for
Fusionex and we anticipate that as the Big Data market matures, we
will see demand underpinned by business leaders seeking actionable
insights and tangible returns on investment. Indeed, Gartner has
noted the trend of a shift in the role of initiators of Big Data
projects within an organisation in 2015. Gartner found that
business unit heads were almost as likely to initiate Big Data
projects as Chief Information Officers in 2015, with 31% of
projects initiated by business unit heads and 32% by Chief
Information Officers, compared to 25% and 37% respectively in 2014.
GIANT is well placed to benefit from this trend, providing an
easy-to-use interface which enables users to derive actionable
insight and foresight from huge amounts of data analysed and
processed in a fast and efficient manner.
Also supporting the substantial growth in demand is the impact
of the IoT. IDC has forecasted that IoT analytics will be hot, with
a five-year CAGR of 30%, and that the IoT will be the next critical
focus for data analytics services. The International Institute of
Analytics has in turn commented that while the IoT trend has
focused on the data generation and production (sensors) side of the
equation, the "Analytics of Things" is a particular form of Big
Data Analytics that often involves anomaly detection and "bringing
analytics to life".
The number of connected devices is predicted to grow from 3
billion to 25 billion in three years' time. In tandem with that,
worldwide spending on IoT is forecasted to grow from $698.6 billion
in 2015 to nearly $1.3 trillion in 2019 (source: IDC). Notably, IDC
highlights Asia Pacific as the region that's leading the way with
IoT, accounting for more than 40% of the total spend on IoT in
2015. With the proliferation of devices, organisations increasingly
need to leverage the vast quantities of data created to create
business value and this will continue to boost spending on Big Data
Analytics. In short, data growth is outpacing data analytics, thus
creating a great opportunity ahead for Fusionex in this growing
space.
Growth Strategy
Utilising our unique Analytics and Big Data products, Fusionex
is poised to ride the Big Data wave to provide high business value
software solutions to existing and new customers in this fast
growing market space. The Company will continue to focus on growth
by leveraging on our existing customer/install base to cross-sell
innovative and newer versions of our products as well as growth
from new customer acquisitions through our proven track record,
strong offerings and solid value proposition. At the same time,
through continual establishment of our partner channel network, we
will leverage this ecosystem and indirect sales channel to reach
out to a wider audience. Finally, we also look towards accelerating
growth by addressing new geographies.
Outlook
Looking ahead, we see exciting opportunities for our business,
especially from our upcoming releases of GIANT, as well as exciting
new market segments and geographies. Demand for Big Data products
continues to accelerate across a diverse range of sectors and
geographies, reinforced by the growth of connected devices (IoT)
and the need for organisations to convert data into business
value.
We are now investing in all aspects of our business to
dramatically accelerate revenue growth and thereby take advantage
of the current market opportunities.
The year has started strongly with new wins already secured for
GIANT, as announced, coupled with a very strong pipeline and
therefore the outlook for 2016 and beyond is positive and exciting
for Fusionex.
Financial Review
The financial year ended 30 September 2015 has seen Fusionex
deliver another strong financial performance ahead of market
expectations.
Revenue
Revenue for the financial year totaled RM77.0 million, an
increase of 35% on last year's performance (2014: RM57.1 million),
with product sales accounting for 88% (2014: 84%) of the Group's
total revenue.
A significant portion of this revenue growth is attributable to
the expansion of the Group's partner channel network, with revenues
from the Group's partner channel network accounting for more than
30% of the total revenue for the financial year. The growth of the
Group's partner channel network continues to be a core part of the
Group's growth strategy and, as with some of the Company's select
customers, extended credit terms have been agreed with key channel
partners. This, along with the closure of a number of sales towards
the financial year end, has contributed to the increase in trade
receivables as at 30 September 2015. Nonetheless, cash collections
post the balance sheet date have been significant.
Gross profit
Gross profit increased from RM44.3 million in 2014 to RM58.9
million in 2015 generating a gross profit margin of circa 76.4%
(2014: 77.6%). In line with its ongoing strategy, Fusionex has
again invested considerably in research and development to maintain
its position as a market leader in Analytics and Big Data,
capitalising RM16.5 million of development costs in the financial
year.
Profitability and EBITDA
The Group's profit before tax increased to RM28.4 million (2014:
RM22.8 million), with net profit (profit after tax) increasing to a
RM24.9 million (2014: RM19.5 million).
EBITDA for the period totaled RM35.0 million (2014: RM27.2
million) calculated as profit before tax adjusted for: amortisation
of intangible assets of RM4.6 million, depreciation of property,
plant and equipment of RM2.2 million and net interest income
totalling RM0.2 million. Profit before tax includes a gain on
disposal of fixed assets of RM2.0 million (2014: RM1.4
million).
Taxation
The Group continues to benefit from operating in certain
geographies in which the income generated has been exempted from
taxation or subject to tax allowances. The effective tax rate for
the Group was 12.1% (2014: 14.6%).
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Table - Key Performance Indicators
(RM'million) 30 September 2015 30 September 2014
--------------------------- ------------------ ------------------
Revenue 77.0 57.1
--------------------------- ------------------ ------------------
By: Type
--------------------------- ------------------ ------------------
Products 68.0 47.9
--------------------------- ------------------ ------------------
Services 9.0 9.2
--------------------------- ------------------ ------------------
By: Region
--------------------------- ------------------ ------------------
Asia Pacific 77.0 50.8
--------------------------- ------------------ ------------------
UK & Europe 14.8 12.3
--------------------------- ------------------ ------------------
USA 5.6 3.7
--------------------------- ------------------ ------------------
Consolidation elimination (20.4) (9.7)
--------------------------- ------------------ ------------------
Gross Profit 58.9 44.3
--------------------------- ------------------ ------------------
EBITDA 35.0 27.0
--------------------------- ------------------ ------------------
Profit before tax 28.4 22.8
--------------------------- ------------------ ------------------
Profit after tax 24.9 19.5
--------------------------- ------------------ ------------------
EPS (RM) 0.58 0.45
--------------------------- ------------------ ------------------
Cash flow
Profit before tax grew c.25% in the financial year under review,
while cash generated from operations was impacted by the increase
in trade and other receivables amounting to RM28.5 million, which
primarily arose due to the expansion of the Group's partner channel
network and extended credit terms offered to channel partners as
well as significant sales being secured in the latter part of the
financial year under review. Cash collections post the balance
sheet date have been significant and despite the increase in trade
and other receivables, the cash position of the Group remains
strong.
The principal movements in the net cash were as follows:-
(RM'million) 30 September 2015 30 September 2014
------------------------------ ------------------ ------------------
Cash flows from operating
activities 11.6 24.5
------------------------------ ------------------ ------------------
Acquisition of property,
plant and, equipment
& software (5.0) (7.9)
------------------------------ ------------------ ------------------
Proceeds from sale
of property, plant
and, equipment & software 5.4 4.9
------------------------------ ------------------ ------------------
Development costs incurred
on intangible assets (16.5) (11.1)
------------------------------ ------------------ ------------------
Repayment of term loans (3.2) (4.1)
------------------------------ ------------------ ------------------
Dividend paid (5.0) (4.8)
------------------------------ ------------------ ------------------
Change in net cash
and cash equivalent
in the financial year (12.7) 1.4
------------------------------ ------------------ ------------------
Cash and cash equivalent
at the beginning of
the financial year 64.0 62.4
------------------------------ ------------------ ------------------
Effects of foreign
exchange rate changes,
net 6.4 0.2
------------------------------ ------------------ ------------------
Cash and cash equivalent
at the end of the financial
year 57.7 64.0
------------------------------ ------------------ ------------------
Borrowings and bank facilities
Total borrowings of the Group have decreased slightly to RM20.3
million (2014: RM21.0 million). This is principally attributable to
the repayment of the term loan facilities for the acquisition of
the Group's head office.
Equity
The Group's equity remains strong totalling RM128.7 million
(2014: RM101.4 million).
Earnings per share
The Group's earnings per share increased to RM0.58 (2014:
RM0.45).
Post-period placing
Following the year end, in October 2015, the Group successfully
concluded a significantly oversubscribed placing of 4,300,000 new
Ordinary Shares at 325 pence per share to raise a total of
GBP13.975 million (the "Placing").
Consolidated Statement of Financial Position
as at 30 September 2015
2015 2014
Note RM RM
============================================ ==== ============ ============
Assets
Non--current assets
Property, plant and equipment 2 38,031,429 35,193,579
Goodwill on consolidation 3 549,572 549,572
Intangible assets 4 34,192,186 21,575,667
Deferred tax assets 831,440 441,954
73,604,627 57,760,772
============================================ ==== ============ ============
Current assets
Trade receivables 28,522,560 7,547,911
Other receivables, deposits and prepayments 4,950,692 1,918,347
Amounts owing by contract customers 2,706,372 2,845,754
Tax recoverable 232,244 -
Cash and cash equivalents 57,727,636 64,021,296
-------------------------------------------- ---- ------------ ------------
94,139,504 76,333,308
-------------------------------------------- ---- ------------ ------------
Asset classified as held for sale 5 - 3,133,832
Total assets 167,744,131 137,227,912
-------------------------------------------- ---- ------------ ------------
Equity and liabilities
Stated capital 6 71,457,058 71,457,058
Merger reserve (17,668,186) (17,668,186)
Foreign exchange translation reserve 8,194,821 902,151
Retained profits 66,688,490 46,701,994
-------------------------------------------- ---- ------------ ------------
Total equity attributable to owners 128,672,183 101,393,017
-------------------------------------------- ---- ------------ ------------
Non--current liabilities
Long term borrowings 19,445,684 20,224,294
Deferred tax liabilities 6,218,400 3,421,090
-------------------------------------------- ---- ------------ ------------
25,664,084 23,645,384
-------------------------------------------- ---- ------------ ------------
Current liabilities
Other payables and accruals 12,017,157 7,623,156
Amount owing to contract customers - 128,625
Short term borrowings 819,454 800,794
Provision for taxation 571,253 1,103,884
-------------------------------------------- ---- ------------ ------------
13,407,864 9,656,459
-------------------------------------------- ---- ------------ ------------
Liabilities directly associated with asset
classified as held for sale 5 - 2,533,052
Total liabilities 39,071,948 35,834,895
-------------------------------------------- ---- ------------ ------------
Total equity and liabilities 167,744,131 137,227,912
-------------------------------------------- ---- ------------ ------------
Consolidated Statement of Comprehensive Income
for the year ended 30 September 2015
2015 2014
Note RM RM
-------------------------------------------------- ---- ------------ ------------
Revenue 77,044,316 57,105,535
Cost of sales (18,191,260) (12,793,229)
-------------------------------------------------- ---- ------------ ------------
Gross profit 58,853,056 44,312,306
Other income 4,893,271 1,577,537
-------------------------------------------------- ---- ------------ ------------
63,746,327 45,889,843
Administrative and other operating expenses (35,333,864) (22,728,101)
Finance costs (41,372) (381,442)
-------------------------------------------------- ---- ------------ ------------
Profit before taxation 28,371,091 22,780,300
Income tax expense 7 (3,423,964) (3,320,432)
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-------------------------------------------------- ---- ------------ ------------
Profit after taxation 24,947,127 19,459,868
Other comprehensive income (items that may
or will be reclassified to profit and loss)
Exchange gains arising on translation of foreign
operations 7,292,670 212,030
-------------------------------------------------- ---- ------------ ------------
Total comprehensive income for the financial
year 32,239,797 19,671,898
-------------------------------------------------- ---- ------------ ------------
Profit after tax attributable to:
Owners of the Group 24,947,127 19,459,868
24,947,127 19,459,868
-------------------------------------------------- ---- ------------ ------------
Total comprehensive income attributable to:
Owners of the Group 32,239,797 19,671,898
32,239,797 19,671,898
-------------------------------------------------- ---- ------------ ------------
Earnings per share attributable to owners of
the Group
Basic, sen 8 58.02 45.26
Diluted, sen 8 58.02 45.26
-------------------------------------------------- ---- ------------ ------------
Consolidated Statement of Changes in Equity
as at 30 September 2015
Non-distributable Distributable
-------------------------------------- -------------
Foreign Attributable
exchange to owners
Stated Merger translation Retained of
capital reserve reserve profits the Group Total equity
Note RM RM RM RM RM RM
======================= ==== ========== ============ ============ ============= ------------ ------------
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 - - - 19,459,868 19,459,868 19,459,868
Other comprehensive
income,
net of tax
- Foreign currency
translation
differences for
foreign
operations - - 212,030 - 212,030 212,030
========== ============ ============ ============= ============ ============
Total comprehensive
income
for the financial year - - 212,030 19,459,868 19,671,898 19,671,898
Dividend 9 - - - (4,795,360) (4,795,360) (4,795,360)
Balance at 30 September
2014 71,457,058 (17,668,186) 902,151 46,701,994 101,393,017 101,393,017
======================= ==== ========== ============ ============ ============= ============ ============
Non-distributable Distributable
====================================== =============
Foreign Attributable
exchange to owners
Stated Merger translation Retained of
capital reserve reserve profits the Group Total equity
Note RM RM RM RM RM RM
======================= ==== ========== ============ ============ ============= ------------ ------------
Balance at 1 October
2014 71,457,058 (17,668,186) 902,151 46,701,994 101,393,017 101,393,017
========== ============ ============ ============= ============ ============
Profit after taxation - - - 24,947,127 24,947,127 24,947,127
Other comprehensive
income,
net of tax
- Foreign currency
translation
differences for
foreign
operations - - 7,292,670 - 7,292,670 7,292,670
========== ============ ============ ============= ============ ============
Total comprehensive
income
for the financial year - - 7,292,670 24,947,127 32,239,797 32,239,797
Dividend 9 - - - (4,960,631) (4,960,631) (4,960,631)
Balance at 30 September
2015 71,457,058 (17,668,186) 8,194,821 66,688,490 128,672,183 128,672,183
======================= ==== ========== ============ ============ ============= ============ ============
Consolidated Statement of Cash Flows
as at 30 September 2015
2015 2014
Note RM RM
----------------------------------------------------- ----- ------------ ------------
Cash flows from operating activities
Profit before taxation 28,371,091 22,780,300
Adjustments for:
- amortisation of intangible assets 4,574,604 2,647,681
- depreciation of property, plant and equipment 2,245,115 1,371,434
- interest expenses 41,372 381,442
- interest income (268,283) (142,905)
- property, plant and equipment written off 3,307 83,646
- gain on disposal of fixed assets (2,036,717) (1,364,961)
------------------------------------------------------------ ------------ ------------
Operating profit before working capital changes 32,930,489 25,756,637
Increase in trade and other receivables (24,264,042) (2,015,083)
Increase in other payables and accruals 4,394,001 2,101,774
Decrease in amount owing from contract customers 10,757 25,265
------------------------------------------------------------ ------------ ------------
Cash flows from operating activities 13,071,205 25,868,593
Interest paid (41,372) (381,442)
Interest received 268,283 142,905
Income tax paid (1,651,465) (1,115,472)
------------------------------------------------------------ ------------ ------------
Net cash generated from operating activities 11,646,651 24,514,584
------------------------------------------------------------ ------------ ------------
Cash flows from investing activities
Purchase of property, plant and equipment (5,032,700) (7,886,920)
Proceeds from disposal of property, plant and
equipment 5,427,597 4,904,160
Development costs on intangible assets (16,499,763) (11,148,891)
------------------------------------------------------------ ------------ ------------
Net cash used in investing activities (16,104,866) (14,131,651)
------------------------------------------------------------ ------------ ------------
Cash flows from financing activities
Dividends paid (4,960,631) (4,795,360)
Repayment of hire purchase payables (78,792) (121,102)
Repayment of term loans (3,214,210) (4,066,005)
Net cash used in financing activities (8,253,633) (8,982,467)
============================================================ ============ ============
Net (decrease)/increase in cash and cash equivalents (12,711,848) 1,400,466
Cash and cash equivalents at beginning of the financial
year 64,021,296 62,391,526
Effects of foreign exchange rate changes, net 6,418,188 229,304
============================================================ ============ ============
Cash and cash equivalents at end of the financial
year 57,727,636 64,021,296
============================================================ ============ ============
Notes to the Financial Information
for the year ended 30 September 2015
1. Basis of preparation
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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
2015. The financial information has been extracted from the
financial statements for the year ended 30 September 2015, which
were approved by the Board on 20 January 2015 and on which the
auditors have reported without qualification. The 2015 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)
issued by the International Accounting Standards Board (IASB) as
adopted by the European Union (EU), including related
interpretations issued by the International Financial Reporting
Interpretations Committee (IFRIC).
The accounting policies adopted by the Group are consistent with
those of the previous financial year except in the current
financial year, the Group has adopted all the new and revised
standards and Interpretations of IFRS that are effective for annual
periods beginning on or after 1 October 2014. The adoption of these
standards and interpretations did not have any effect on the
financial performance or position of the Group and the Company.
The directors propose a single payment of an interim dividend
and do not propose a final dividend in respect of the year ended 30
September 2015 (2014: nil).
The Board of Directors approved this announcement on 20 January
2016.
2. Property, plant and equipment
During the year ended 30 September 2015, the Group acquired
assets amounting to RM5,032,700 (2014: RM7,886,920).
3. Goodwill on consolidation
2015 2014
RM RM
------------------------ ------- -------
At cost 558,887 558,887
Less: impairment losses (9,315) (9,315)
------------------------- ------- -------
Carrying value 549,572 549,572
------------------------- ------- -------
During the financial year, the Group assessed the recoverable
amount of the goodwill and determined that no additional impairment
is required. This assessment of goodwill 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
2015 2014
RM RM
--------------------------------- ----------- -----------
Development expenditure
At cost:
At 1 October - brought forward 26,237,745 15,110,585
Additions 16,499,763 11,148,891
Translation differences 929,644 (21,731)
--------------------------------- ----------- -----------
43,667,152 26,237,745
--------------------------------- ----------- -----------
Accumulated amortisation
At 1 October - brought forward (4,662,078) (2,017,929)
Amortisation charge (4,574,604) (2,647,681)
Translation differences (238,284) 3,532
--------------------------------- ----------- -----------
(9,474,966) (4,662,078)
--------------------------------- ----------- -----------
At 30 September - net book value 34,192,186 21,575,667
--------------------------------- ----------- -----------
The intangible assets mainly consist of staff costs.
5. Asset classified as held for sale
At 30 September 2014, assets classified as held by sale included
the property sold at RM3,133,832. The liabilities associated with
the asset held for sale were RM2,533,052. This related principally
to the Group's office premise in L19-03-08, PJX-HM Shah Tower, No.
16A, Persiaran Barat, 46050 Petaling Jaya, Selangor Darul Ehsan. No
impairment of loss was recognised on reclassification of the office
building as held for sale nor as at 30 September 2014 as the
Directors expected that the fair value less costs to sell was
higher than the carrying amount. The proceeds in respect of the
disposal was received in cash consideration of RM5,427,597.
The sale was completed in March 2015.
6. Stated capital
Issued, called up and fully paid
No. of shares RM
---------------------------------------- ------------- ----------
As at 1 October 2014/ 30 September 2015 43,000,000 71,457,058
----------------------------------------- ------------- ----------
The Company has an unlimited authorised share capital of
Ordinary Shares of no par value.
7. Income tax expense
2015 2014
RM RM
----------------------------------------------- --------- ---------
Current tax expense
- for the financial year 1,223,378 1,689,691
- overprovision in the previous financial year (336,788) (230,314)
------------------------------------------------ --------- ---------
886,590 1,459,377
Deferred tax assets:
--------- ---------
- for the financial year - (442,878)
- underprovision in the previous financial
year (259,936) -
--------- ---------
(259,936) (442,878)
Deferred tax liabilities:
- for the financial year 3,004,165 2,303,933
- overprovision in the previous financial year (206,855) -
------------------------------------------------ --------- ---------
3,423,964 3,320,432
----------------------------------------------- --------- ---------
Tax expense is recognised based on an annual tax rate for the
full financial year applied to the pre-tax income of the year.
8. 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
-------------------------
2015 2014
RM RM
------------------------------------------- ------------ -----------
Profit after tax attributable to owners of
the Group 24,947,127 19,459,868
Weighted average number of shares:
Basic 43,000,000 43,000,000
Diluted 43,000,000 43,000,000
Earnings per share:
Basic 58.02 45.26
Diluted 58.02 45.26
-------------------------------------------- ------------ -----------
9. Dividends
2015 2014
RM RM
-------------------------------------------- --------- ---------
Interim dividend for 30.9.2015: RM0.115 per
ordinary share 4,960,631 -
Interim dividend for 30.9.2014: RM0.112 per
ordinary share - 4,795,360
--------------------------------------------- --------- ---------
4,960,631 4,795,360
-------------------------------------------- --------- ---------
10. Capital commitment
Authorised capital expenditure contracted but not provided for
in the consolidated financial statements is analysed as
follows:
2015 2014
RM RM
---------------------- ------- ----
Leasehold improvement 419,268 -
----------------------- ------- ----
11. 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.
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 in a 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. For management purposes, the Group
is organised into business units based on geographical
locations.
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