RNS Number:6718J
GMO Limited
29 September 2006
Press Release 29 September 2006
GMO Limited
("GMO" or "the Group")
Unaudited Interim Results
GMO Limited (AIM:GMO), a leading provider of wireless value-added services in
China, which was admitted to AiM on 6 September 2006, today announces its maiden
unaudited Interim Results as a company listed on AIM, for the six months ended
30 June 2006.
Highlights
* Successful completion of AiM IPO, raising #5 million for the Group
* Strong business prospects in China
* EBITDA #0.9 million on net revenues of #0.9 million
* Robust earnings per share of 1.5 pence
Commenting on the results, Tan Sri Datuk Dr Omar Rahman, Chairman of GMO
Limited, said: "GMO is involved in the fast-growing telecommunications sector in
the world's largest market, China. The outlook for this sector is attractive
and with the foundation of the Group in place, we are confident of the prospects
in the months to come."
Eugene Goh, Chief Executive Officer of GMO Limited, added: "Our unique
positioning in China, the largest mobile market in the world with more than 400
million mobile subscribers, presents an exciting opportunity for tremendous
growth. In the coming months, we will be focusing on our corporate strategy of
organic and acquisitive growth. We aim to be a leading player in the China
market."
- Ends -
For further information:
GMO Limited
Eugene Goh, Chief Executive Officer Tel: +44 (0) 20 7398 7700
Eugene@mtouche.com http://www.gmoglobal.com/
Corporate Synergy Plc
John Wakefield / Mike Coe, Corporate Finance Tel: +44 (0) 117 933 0020
Jwakefield@corporatesynergy.co.uk http://www.corporatesynergy.co.uk/
Media enquiries:
Abchurch
Henry Harrison-Topham Tel: +44 (0) 20 7398 7700
henry.ht@abchurch-group.com http://www.abchurch-group.com/
Chairman's Statement
Overview
The first half of 2006 has been a busy and successful period for the Group. We
completed a successful IPO on the AiM market of the London Stock Exchange in
which we raised IPO proceeds of #5 million before expenses.
Trading for the six months to 30 June 2006 has been strong. The proforma
un-audited EBITDA was #0.9 million on the back of net revenues of #0.9 million.
Basic earning per share ('EPS') was 1.5 pence.
Operational Review
We will further develop our STP platform and continue to enhance our product
offerings to content providers in the coming months with a view to assist these
content providers to increase their range of content services to target the
China mobile subscribers.
The prospects for the mobile market in China are attractive with a penetration
rate of only about 25 per cent compared to up to 100% in matured markets. In
addition, China is also expected to give out 3G licenses before the 2008
Olympics which will spur considerable growth in the mobile market. These
developments will provide exciting growth opportunities for GMO Limited.
Current trading and prospects
The mobile market in China continues to enjoy high growth rates with more than
400 million subscribers as of to-date. This provides significant upside for GMO
Limited to grow and the Group is well-positioned to benefit from the growth. We
aim to be the leading player in China and will focus on our organic and
acquisition led strategy.
Tan Sri Datuk Dr. Omar A. Rahman
Chairman
29 September 2006
PRO FORMA CONSOLIDATED INCOME STATEMENT
(UNAUDITED)
6 MONTHS
ENDED
30 JUNE 2006
Notes #
Revenue 905,918
Cost of sales (5,625)
Gross Profit 900,293
Administrative expenses (3,571)
EBITDA* 896,722
Amortisation (253,332)
Profit before taxation 643,390
Taxation -
Profit after taxation 643,390
Minority interest (191,570)
Profit for the period 451,820
Earnings per share attributable to equity holders of
the parent
- Basic (pence) 4 1.51
- Diluted (pence) NA
EBITDA denotes Earnings Before Interest, Tax, Depreciation and Amortisation
This is the first Pro forma Interim Financial Statements on the consolidated
results for the financial period ended 30 June 2006 announced by the Company in
compliance with AIM requirements. As this is the first report being drawn up,
there are no comparative figures for the preceding year.
The unaudited pro forma consolidated income statements should be read in
conjunction with the accompanying explanatory notes attached to the interim
financial statements.
PRO FORMA CONSOLIDATED BALANCE SHEETS (UNAUDITED)
AT
30 JUNE 2006
#
Non - current assets
Intellectual property 7,083,855
Current assets
Trade and other receivables 1,056,848
Cash and bank balances 360,968
1,417,816
Current liabilities
Accruals 108
Amount owing to related parties 173,344
Provision 2,488,094
2,661,546
Net current liabilities (1,243,730)
5,840,125
Financed by:
Capital and reserves
Equity attributable to equity holders of the parent
Share capital 3,000,000
Share premium 1,256,056
Foreign exchange reserve (241,082)
Retained profits 1,276,075
5,291,049
Minority Interest 549,076
Total equity 5,840,125
Non-current liability -
5,840,125
Net assets per share attributable to ordinary equity
holders of the parent (pence) 13
This is the first Pro forma Interim Financial Statements on the consolidated
results for the financial period ended 30 June 2006 announced by the Company in
compliance with AIM requirements. As this is the first report being drawn up,
there are no comparative figures for the preceding year.
The unaudited pro forma consolidated income statements should be read in
conjunction with the accompanying explanatory notes attached to the interim
financial statements.
PRO FORMA CONSOLIDATED CASH FLOW STATEMENTS (UNAUDITED)
6 MONTHS
ENDED
30 JUNE 2006
#
Cash flows from operating activities
Profit before taxation 643,390
Adjustments for non-cash item:
Amortisation of intellectual property 253,332
Other non-cash items (13,326)
Profit before working capital changes 883,396
Changes in working capital:
Increase in trade and other receivables (1,056,848)
Increase in accruals 108
Increase in amount owing by related parties 173,344
Cash generated from operations -
Net cash generated from operating activities -
Cash flows from investing activities
Acquisition of subsidiary 360,968
Net cash generated from in investing activities 360,968
Cash flows from financing activity
Net cash used in financing activity -
Net decrease in cash and cash equivalents 360,968
Cash and cash equivalents at 1 January -
Cash and cash equivalents at end of period (i) 360,968
(i) Cash and cash equivalents
Cash and cash equivalents included in the pro forma cash flow statements
comprise the following balance sheet amounts:
Cash and bank balances 360,968
360,968
This is the first Pro forma Interim Financial Statements on the consolidated
results for the financial period ended 30 June 2006 announced by the Company in
compliance with AIM requirements. As this is the first report being drawn up,
there are no comparative figures for the preceding year.
The unaudited pro forma consolidated income statements should be read in
conjunction with the accompanying explanatory notes attached to the interim
financial statements.
NOTES TO THE INTERIM FINANCIAL REPORT
1. Basis of Preparation
The pro-forma consolidated interim financial statements are unaudited and have
been prepared on the basis that GMO Global Limited Group was held by GMO Limited
throughout the six months period end 30 June 2006 and in accordance with the
requirements of AIM rules.
2. Accounting Convention
The financial statements are prepared under the historical cost convention and
on the going concern basis.
3. Basis of Consolidation
The pro-forma consolidated interim financial statements have been prepared on
the basis that GMO Limited and its subsidiary, GMO Global Limited, were in
existence throughout the six months period ended 30 June 2006.
A subsidiary is defined as a company in which the Group has the power, directly
or indirectly, to exercise control over the financial and operating policies so
as to obtain benefits from its activities.
All subsidiaries are consolidated using the acquisition method of accounting.
Under the acquisition method of accounting, the results of subsidiaries acquired
or disposed of are included from the date of acquisition or up to the date of
disposal. At the date of acquisition, the fair values of the subsidiaries' net
assets are determined and these values are reflected in the consolidated
financial statements.
Intra-group transactions, balances and unrealised gains on transactions are
eliminated; unrealised losses are also eliminated unless cost cannot be
recovered. Where necessary, adjustments are made to the financial statements of
subsidiaries to ensure consistency of accounting policies with those of the
Group.
Minority interest is measured at the minorities' share of the fair values of the
identifiable assets and liabilities of the acquired.
4. Earnings per share
The basic earnings per share for the current half year ended 30 June 2006 has
been calculated based on the net profit attributable to ordinary shareholders of
GMO Limited of 1.51 pence divided by the number of ordinary shares of 10 pence
each in issue of 30,000,000 for the half year ended 30 June 2006.
5. Material Events Subsequent To the End of the First Half Year
Acquisition of GMO Global Limited ("GMO") and Share Exchange Agreement
On 18 August 2006, pursuant to the Share Exchange Agreement ("SEA"), GMOL
acquired the entire issued and paid-up share capital of GMO Global Limited ("GMO
"), a company incorporated in the British Virgin Islands, from the JV Partners
namely Green Packet Berhad ("GPB"), mTouche Technology Berhad ("MTB") and OSK
Ventures International Berhad ("OSDKVI") for a total consideration of #5,069,830
("Consideration") to be satisfied by way of a share swap which will entail the
issuance of 2,999,900 ordinary shares of #1.00 each in GMOL ("GMOL Shares") at
an issue price of #1.69 per GMOL Share, to be credited as fully paid-up.
Subsequent to the SEA, the JV Partners acquired the remaining 100 GMOL Shares,
at par from the existing shareholders, namely Monitor Holdings Limited and
Primary Holdings Limited, in the proportion of their respective shareholdings in
GMOL.
On the same date, GMOL implemented a share split on the basis of every one (1)
ordinary share of #1.00 each in GMOL into ten (10) new shares of 10 pence each
("New GMOL Shares").
Listing of GMO Limited on Alternative Investment Market ("AIM") of the London
Stock Exchange
On 6 September 2006, GMOL undertook a placing of 10,000,000 New GMOL Shares,
representing approximately 25% of the enlarged issued and paid-up share capital
of GMOL, at an indicative issue price of 50 pence each. The placing raised a
total gross proceeds amounted to #5,000,000, and the issued and paid-up share
capital of GMOL increase from #3,000,000 comprising 30,000,000 New GMOL Shares
to #4,000,000 comprising 40,000,000 New GMOL Shares.
On the same date, the entire issued and paid-up share capital of GMO Limited ("
GMOL") of #4,000,000 comprising 40,000,000 ordinary shares of 10 pence each was
admitted to the AIM of the London Stock Exchange.
- Ends -
This information is provided by RNS
The company news service from the London Stock Exchange
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