TIDMGMO
RNS Number : 1958N
GMO Limited
12 February 2009
+------------------------------------+--------------------------------------+
| Press Release | 12 February 2009 |
+------------------------------------+--------------------------------------+
GMO Limited
("GMO" or the "Group")
Unaudited preliminary final results
GMO Limited (AIM:GMO), an AIM-listed leading provider of wireless value-added
services ('WVAS') currently focused on the Chinese market today announces its
unaudited preliminary final results, for the financial year ended 31st December
2008.
Highlights
+-----------------------+----------------------------------------------------------------------------+
| * | Revenue amounting to USD5.4 million (2007: USD7.6 million) |
+-----------------------+----------------------------------------------------------------------------+
| * | Loss for the year USD8.2 million (2007: USD0.9 million) mainly attributed |
| | to impairment loss for investment in associate USD4.6 million (2007: Nil) |
| | and finance costs USD1.8 million (2007: USD1.6 million) |
+-----------------------+----------------------------------------------------------------------------+
Commenting on the results, Tan Sri Datuk Dr Omar Rahman, Chairman of GMO, said:
"With the current global crisis affecting China, GMO faces a challenging
operating environment for wireless service providers in China. Nonetheless, our
businesses have gradually stabilized during the second quarter and have further
improved in the second half of 2008 as compared to the first half. We remain
committed to seeking the best possible opportunities and outcomes for the
benefit of our shareholders, including the pursuit of potential strategic
investments and synergistic collaborations."
Eugene Goh, Chief Executive Officer of GMO, added: "Like most wireless service
providers in China, we continue to face a challenging economic and regulatory
environment for our wireless value-added services business. We remain confident
in the development and potential of our core wireless services in China as
fundamentals remain strong. We are well positioned for the oncoming of 3G in
China and we are cautiously hopeful of a continued improvement in our business."
For further information:
+---------------------------------------------------------+--------------------------------------------+
| GMO Limited | |
+---------------------------------------------------------+--------------------------------------------+
| Eugene Goh, Chief Executive Officer | Tel: + 65 9690 0099 |
+---------------------------------------------------------+--------------------------------------------+
| eugene@gmoglobal.com | www.gmoglobal.com |
+---------------------------------------------------------+--------------------------------------------+
| | |
+---------------------------------------------------------+--------------------------------------------+
| Blue Oar Securities | |
+---------------------------------------------------------+--------------------------------------------+
| Justin Lewis | Tel: +44 (0) 20 7448 4400 |
| jlewis@blueoarsecurities.co.uk | |
+---------------------------------------------------------+--------------------------------------------+
Chairman's Statement
Overview
The GMO Group was established to take advantage of opportunities in the wireless
value-added services ("WVAS") sector in China. GMO was listed on the AIM market
of the London Stock Exchange in September 2006 and is seeking to become a
leading cellular communication and WVAS company in China. Working closely with
the mobile network operators in China, GMO offers a variety of wireless
services, content and applications to mobile users in China.
For the year ended 31 December 2008, GMO made a loss before tax of USD 8.4
million, after taking into account financing costs associated with the Murabahah
Loan Notes of USD1.8 million and the provision of impairment loss for investment
in associate of USD4.6 million.
Operational Review
The operating environment within the WVAS industry in the 2008 has been very
difficult due to the implementation of various new regulations imposed by the
Ministry of Industry and Information Technology of China. This has resulted in
content providers spending considerably less on product development than before
the regulations and also in less advertising, which had a knock-on effect on the
WVAS industry especially in first half 2008. Consequently, revenues and gross
profit for the year ended 2008 have been considerably lower than 2007.
Current trading and prospects
GMO, in its quest to become a leading WVAS and Media Company in China, is
constantly evaluating its business and other potential opportunities. The Group
continues to explore various acquisition opportunities in order to strengthen
their businesses. The Group's investment strategy will be to acquire profitable
trading businesses which are cash generative and capable of organic growth or
growth by acquisition. In the meantime, GMO will continue to expand its range of
products and services to increase its revenue base and to improve its
profitability.
Following the completion of Tel Co restructuring in October 2008 and subsequent
issuance of 3G licenses in January 2009 in China, GMO believe these changes are
positive news and will expand the revenue opportunities for the WVAS industry.
GMO will continue to invest in research and development to roll-out new products
and services in anticipation of the 3G rollout in China and the Company is well
positioned to exploit opportunities in this new market as it develops.
Loan Notes
The Company repaid USD521,581 to subscribers on 1 April 2008. Balance of Loan
Notes USD19,713,519 were redeemed by the issue of 153,614,481 ordinary shares
(no par value) at 7 pence per share on 3 September 2008 and admitted to AIM on 9
September 2008. The financial position of the Company has been significantly
improved after the conversion of Loan Notes.
Tan Sri Datuk Dr. Omar A. Rahman
Chairman
12 February 2009
CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED)
+----------------------------------------+-+-------+-+---------------+-+------------+
| | | | | (UNAUDITED) | | (AUDITED) |
+----------------------------------------+-+-------+-+---------------+-+------------+
| | | | | YEAR | | YEAR |
+----------------------------------------+-+-------+-+---------------+-+------------+
| | | | | ENDED | | ENDED |
+----------------------------------------+-+-------+-+---------------+-+------------+
| | | | | 31.12.2008 | |31.12.2007 |
+----------------------------------------+-+-------+-+---------------+-+------------+
| | |Notes | | USD'000 | | USD'000 |
+----------------------------------------+-+-------+-+---------------+-+------------+
| | | | | | | |
+----------------------------------------+-+-------+-+---------------+-+------------+
| Revenue | | | | 5,390 | | 7,616 |
+----------------------------------------+-+-------+-+---------------+-+------------+
| Cost of sales | | | | (4,850) | | (5,012) |
+----------------------------------------+-+-------+-+---------------+-+------------+
| | | | | | | |
+----------------------------------------+-+-------+-+---------------+-+------------+
| Gross Profit | | | | 540 | | 2,604 |
+----------------------------------------+-+-------+-+---------------+-+------------+
| | | | | | | |
+----------------------------------------+-+-------+-+---------------+-+------------+
| Administrative and other expenses | | | | (6,377) | | (1,014) |
+----------------------------------------+-+-------+-+---------------+-+------------+
| | | | | | | |
+----------------------------------------+-+-------+-+---------------+-+------------+
| EBITDA* | | | | (5,837) | | 1,590 |
+----------------------------------------+-+-------+-+---------------+-+------------+
| | | | | | | |
+----------------------------------------+-+-------+-+---------------+-+------------+
| Other income | | | | 7 | | 139 |
+----------------------------------------+-+-------+-+---------------+-+------------+
| Finance costs | | | | (1,782) | | (1,638) |
+----------------------------------------+-+-------+-+---------------+-+------------+
| Amortisation and depreciation | | | | (907) | | (907) |
+----------------------------------------+-+-------+-+---------------+-+------------+
| | | | | | | |
+----------------------------------------+-+-------+-+---------------+-+------------+
| Loss from operations | | | | (8,519) | | (816) |
+----------------------------------------+-+-------+-+---------------+-+------------+
| | | | | | | |
+----------------------------------------+-+-------+-+---------------+-+------------+
| Share of profit after tax | | | | 83 | | 372 |
| of associate | | | | | | |
+----------------------------------------+-+-------+-+---------------+-+------------+
| | | | | | | |
+----------------------------------------+-+-------+-+---------------+-+------------+
| | | | | | | |
+----------------------------------------+-+-------+-+---------------+-+------------+
| Loss before taxation | | | | (8,436) | | (444) |
+----------------------------------------+-+-------+-+---------------+-+------------+
| | | | | | | |
+----------------------------------------+-+-------+-+---------------+-+------------+
| Taxation | | | | - | | - |
+----------------------------------------+-+-------+-+---------------+-+------------+
| | | | | | | |
+----------------------------------------+-+-------+-+---------------+-+------------+
| Loss after taxation | | | | (8,436) | | (444) |
+----------------------------------------+-+-------+-+---------------+-+------------+
| | | | | | | |
+----------------------------------------+-+-------+-+---------------+-+------------+
| Minority interest | | | | 205 | | (487) |
+----------------------------------------+-+-------+-+---------------+-+------------+
| | | | | | | |
+----------------------------------------+-+-------+-+---------------+-+------------+
| Loss for the year | | | | (8,231) | | (931) |
+----------------------------------------+-+-------+-+---------------+-+------------+
| | | | | | | |
+----------------------------------------+-+-------+-+---------------+-+------------+
| Loss per share attributable | | | | | | |
+----------------------------------------+-+-------+-+---------------+-+------------+
| to equity holders of the parent | | | | | | |
+----------------------------------------+-+-------+-+---------------+-+------------+
| - Basic (cents) ^ | | 5 | | (9) | | (2) |
+----------------------------------------+-+-------+-+---------------+-+------------+
| | | | | | | |
+----------------------------------------+-+-------+-+---------------+-+------------+
| - Diluted (cents) | | | | NA | | NA |
+----------------------------------------+-+-------+-+---------------+-+------------+
| | | | | | | |
+----------------------------------------+-+-------+-+---------------+-+------------+
*EBITDA - denotes "(Loss) / Earnings Before Interest, Taxation, Depreciation and
Amortisation."
This is the unaudited final report on the consolidated results for the financial
year ended 31 December 2008 announced by the Company in compliance with AIM
requirements.
The unaudited consolidated income statement should be read in conjunction with
the audited financial statements for the financial year ended 31 December 2007
and the accompanying explanatory notes attached to the financial statements.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
+-+------------------------------------+-------+----------------+-+--------------+
| | | | (UNAUDITED) | | (AUDITED) |
+-+------------------------------------+-------+----------------+-+--------------+
| | | | AT | | AT |
+-+------------------------------------+-------+----------------+-+--------------+
| | | | 31.12.2008 | | 31.12.2007 |
+-+------------------------------------+-------+----------------+-+--------------+
| | |Notes | USD'000 | | USD'000 |
+-+------------------------------------+-------+----------------+-+--------------+
| ASSETS | | | | |
+--------------------------------------+-------+----------------+-+--------------+
| | NON-CURRENT ASSETS | | | | |
+-+------------------------------------+-------+----------------+-+--------------+
| | Plant and equipment | | 18 | | * |
+-+------------------------------------+-------+----------------+-+--------------+
| | Intellectual property | | 10,830 | | 11,736 |
+-+------------------------------------+-------+----------------+-+--------------+
| | Investment in associate | | 19,829 | | 24,560 |
+-+------------------------------------+-------+----------------+-+--------------+
| | | | 30,677 | | 36,296 |
+-+------------------------------------+-------+----------------+-+--------------+
| | CURRENT ASSETS | | | | |
+-+------------------------------------+-------+----------------+-+--------------+
| | Amount owing by a related party | | 75 | | 47 |
+-+------------------------------------+-------+----------------+-+--------------+
| | Other receivables, deposits and | | 240 | | 34 |
| | prepayments | | | | |
+-+------------------------------------+-------+----------------+-+--------------+
| | Cash and bank balances | | 70 | | 1,561 |
+-+------------------------------------+-------+----------------+-+--------------+
| | | | 385 | | 1,642 |
+-+------------------------------------+-------+----------------+-+--------------+
| TOTAL ASSETS | | 31,062 | | 37,938 |
+--------------------------------------+-------+----------------+-+--------------+
| | | | | | |
+-+------------------------------------+-------+----------------+-+--------------+
| EQUITY AND LIABILITIES | | | | |
+--------------------------------------+-------+----------------+-+--------------+
| | EQUITY | | | | |
+-+------------------------------------+-------+----------------+-+--------------+
| | Share capital | 7 | 27,255 | | 7,542 |
+-+------------------------------------+-------+----------------+-+--------------+
| | Share premium | | 9,810 | | 9,810 |
+-+------------------------------------+-------+----------------+-+--------------+
| | Other reserve | | - | | 253 |
+-+------------------------------------+-------+----------------+-+--------------+
| | Exchange fluctuation reserve | | 519 | | 22 |
+-+------------------------------------+-------+----------------+-+--------------+
| | Accumulated losses | | (8,185) | | (323) |
+-+------------------------------------+-------+----------------+-+--------------+
| | TOTAL SHAREHOLDERS' EQUITY | | 29,399 | | 17,304 |
+-+------------------------------------+-------+----------------+-+--------------+
| | MINIORITY INTEREST | | 1,503 | | 1,711 |
+-+------------------------------------+-------+----------------+-+--------------+
| | TOTAL EQUITY | | 30,902 | | 19,015 |
+-+------------------------------------+-------+----------------+-+--------------+
| | | | | | |
+-+------------------------------------+-------+----------------+-+--------------+
| | NON-CURRENT LIABILITY | | | | |
+-+------------------------------------+-------+----------------+-+--------------+
| | Murabahah Loan Notes | | - | | 16,816 |
+-+------------------------------------+-------+----------------+-+--------------+
| | | | | | |
+-+------------------------------------+-------+----------------+-+--------------+
| | CURRENT LIABILITIES | | | | |
+-+------------------------------------+-------+----------------+-+--------------+
| | Other payables and accruals | | 139 | | 290 |
+-+------------------------------------+-------+----------------+-+--------------+
| | Murabahah Loan Notes | 6, 7 | - | | 1,638 |
+-+------------------------------------+-------+----------------+-+--------------+
| | Amount owing to related parties | | 21 | | 179 |
+-+------------------------------------+-------+----------------+-+--------------+
| | | | 160 | | 2,107 |
+-+------------------------------------+-------+----------------+-+--------------+
| | TOTAL LIABILITIES | | 160 | | 18,923 |
+-+------------------------------------+-------+----------------+-+--------------+
| TOTAL EQUITY AND LIABILITIES | | 31,062 | | 37,938 |
+--------------------------------------+-------+----------------+-+--------------+
| | | | - | | - |
+-+------------------------------------+-------+----------------+-+--------------+
| | | | | | |
+-+------------------------------------+-------+----------------+-+--------------+
| Net assets per share attributable to | | | |
| ordinary equity | | | |
+----------------------------------------------+----------------+-+--------------+
| holders of the parent (cents) | | 15 | | 47 |
+--------------------------------------+-------+----------------+-+--------------+
| | | | | | |
+-+------------------------------------+-------+----------------+-+--------------+
* - Below USD1,000
This is the unaudited final report on the consolidated balance sheets for the
financial year ended 31 December 2008 announced by the Company in compliance
with AIM requirements.
The unaudited consolidated balance sheets should be read in conjunction with the
audited financial statements for the financial year ended 31 December 2007 and
the accompanying explanatory notes attached to the financial statements.
CONDENSED CONSOLIDATE STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)
+-----------------+-+----------+-+----------+-+-------------+-+---------+-+--------------+-+----------+-+-----------+
| | | | | Non-Distributable | | Distributable | | | | |
+-----------------+-+----------+-+--------------------------+-+--------------------------+-+----------+-+-----------+
| | | | | | | | | | | Retained | | | | |
+-----------------+-+----------+-+----------+-+-------------+-+---------+-+--------------+-+----------+-+-----------+
| | | | | | | Exchange | | | | Earnings | | | | |
| | | | | | | | | | | / | | | | |
+-----------------+-+----------+-+----------+-+-------------+-+---------+-+--------------+-+----------+-+-----------+
| | | Share | | Share | |Fluctuation | | Other | |(Accumulated | |Minority | | Total |
| | | | | | | | | | | | | | | |
+-----------------+-+----------+-+----------+-+-------------+-+---------+-+--------------+-+----------+-+-----------+
| | | Capital | | Premium | | Reserve | |Reserve | | Losses) | |Interest | | Equity |
+-----------------+-+----------+-+----------+-+-------------+-+---------+-+--------------+-+----------+-+-----------+
| | | USD'000 | | USD'000 | | USD'000 | |USD'000 | | USD'000 | | USD'000 | | USD'000 |
+-----------------+-+----------+-+----------+-+-------------+-+---------+-+--------------+-+----------+-+-----------+
| | | | | | | | | | | | | | | |
+-----------------+-+----------+-+----------+-+-------------+-+---------+-+--------------+-+----------+-+-----------+
| At 1 January | | 7,542 | | 9,810 | | 22 | | 253 | | (323) | | 1,711 | | 19,015 |
| 2008 | | | | | | | | | | | | | | |
+-----------------+-+----------+-+----------+-+-------------+-+---------+-+--------------+-+----------+-+-----------+
| | | | | | | | | | | | | | | |
+-----------------+-+----------+-+----------+-+-------------+-+---------+-+--------------+-+----------+-+-----------+
| Allotment | | 19,713 | | | | | | | | | | | | 19,713 |
+-----------------+-+----------+-+----------+-+-------------+-+---------+-+--------------+-+----------+-+-----------+
| Exchange | | | | | | 497 | | | | | | (3) | | 494 |
| difference | | | | | | | | | | | | | | |
+-----------------+-+----------+-+----------+-+-------------+-+---------+-+--------------+-+----------+-+-----------+
| Share-based | | | | | | | | 116 | | | | | | 116 |
| payment | | | | | | | | | | | | | | |
+-----------------+-+----------+-+----------+-+-------------+-+---------+-+--------------+-+----------+-+-----------+
| Loss for the | | | | | | | | | | (8,231) | | (205) | | (8,436) |
| financial | | | | | | | | | | | | | | |
| year | | | | | | | | | | | | | | |
+-----------------+-+----------+-+----------+-+-------------+-+---------+-+--------------+-+----------+-+-----------+
| Cancellation of | | | | | | | | (369) | | 369 | | | | - |
| share | | | | | | | | | | | | | | |
| options granted | | | | | | | | | | | | | | |
+-----------------+-+----------+-+----------+-+-------------+-+---------+-+--------------+-+----------+-+-----------+
| | | | | | | | | | | | | | | |
+-----------------+-+----------+-+----------+-+-------------+-+---------+-+--------------+-+----------+-+-----------+
| (UNAUDITED) | | 27,255 | | 9,810 | | 519 | | - | | (8,185) | | | | 30,902 |
| At 31 December | | | | | | | | | | | | 1,503 | | |
| 2008 | | | | | | | | | | | | | | |
+-----------------+-+----------+-+----------+-+-------------+-+---------+-+--------------+-+----------+-+-----------+
| | | | | | | | | | | | | | | |
+-----------------+-+----------+-+----------+-+-------------+-+---------+-+--------------+-+----------+-+-----------+
| | | | | | | | | | | | | | | |
+-----------------+-+----------+-+----------+-+-------------+-+---------+-+--------------+-+----------+-+-----------+
| (AUDITED) | | 7,542 | | 9,810 | | 72 | | 161 | | 608 | | 1,207 | | 19,400 |
| At 1 January | | | | | | | | | | | | | | |
| 2007 | | | | | | | | | | | | | | |
+-----------------+-+----------+-+----------+-+-------------+-+---------+-+--------------+-+----------+-+-----------+
| | | | | | | | | | | | | | | |
+-----------------+-+----------+-+----------+-+-------------+-+---------+-+--------------+-+----------+-+-----------+
| Exchange | | | | | | (50) | | | | | | 17 | | (33) |
| difference | | | | | | | | | | | | | | |
+-----------------+-+----------+-+----------+-+-------------+-+---------+-+--------------+-+----------+-+-----------+
| Share-based | | | | | | | | 92 | | | | | | 92 |
| payment | | | | | | | | | | | | | | |
+-----------------+-+----------+-+----------+-+-------------+-+---------+-+--------------+-+----------+-+-----------+
| Loss for the | | | | | | | | | | (931) | | 487 | | (444) |
| financial | | | | | | | | | | | | | | |
| year | | | | | | | | | | | | | | |
+-----------------+-+----------+-+----------+-+-------------+-+---------+-+--------------+-+----------+-+-----------+
| | | | | | | | | | | | | | | |
+-----------------+-+----------+-+----------+-+-------------+-+---------+-+--------------+-+----------+-+-----------+
| (AUDITED) | | 7,542 | | 9,810 | | 22 | | 253 | | (323) | | 1,711 | | 19,015 |
| At 31 December | | | | | | | | | | | | | | |
| 2007 | | | | | | | | | | | | | | |
+-----------------+-+----------+-+----------+-+-------------+-+---------+-+--------------+-+----------+-+-----------+
| | | | | | | | | | | | | | | |
+-----------------+-+----------+-+----------+-+-------------+-+---------+-+--------------+-+----------+-+-----------+
| | | | | | | | | | | | | | | |
+-----------------+-+----------+-+----------+-+-------------+-+---------+-+--------------+-+----------+-+-----------+
This is the unaudited final report on the consolidated statements of changes in
equity for the financial year ended 31 December 2008 announced by the Company in
compliance with AIM requirements.
The unaudited consolidated statements of changes in equity should be read in
conjunction with the audited financial statements for the financial year ended
31 December 2007 and the accompanying explanatory notes attached to the
financial statements.
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (UNAUDITED)
+-+-+--------------------------------------------+-------+--+-------------+--+-------------+
| | | | | |(UNAUDITED) | | (AUDITED) |
+-+-+--------------------------------------------+-------+--+-------------+--+-------------+
| | | | | | YEAR | | YEAR |
+-+-+--------------------------------------------+-------+--+-------------+--+-------------+
| | | | | | ENDED | | ENDED |
+-+-+--------------------------------------------+-------+--+-------------+--+-------------+
| | | | | | 31.12.2008 | | 31.12.2007 |
+-+-+--------------------------------------------+-------+--+-------------+--+-------------+
| | | |Notes | | USD'000 | | USD'000 |
+-+-+--------------------------------------------+-------+--+-------------+--+-------------+
| Cash flows for operating activities | | | | | |
+------------------------------------------------+-------+--+-------------+--+-------------+
| | Loss before taxation | | | (8,436) | | (441) |
+-+----------------------------------------------+-------+--+-------------+--+-------------+
| | Adjustments for: | | | | | |
+-+----------------------------------------------+-------+--+-------------+--+-------------+
| | Amortisation of Intellectual property and | | | 907 | | 907 |
| | depreciation | | | | | |
+-+----------------------------------------------+-------+--+-------------+--+-------------+
| | Share option granted to directors | | | 116 | | 92 |
+-+----------------------------------------------+-------+--+-------------+--+-------------+
| | Cost on Murabahah Loan Notes | | | 1,782 | | 1,638 |
+-+----------------------------------------------+-------+--+-------------+--+-------------+
| | Impairment loss for investment in associate | | | 4,600 | | - |
+-+----------------------------------------------+-------+--+-------------+--+-------------+
| | Interest income | | | (7) | | (64) |
+-+----------------------------------------------+-------+--+-------------+--+-------------+
| | Unrealised loss / (gain) on foreign exchange | | | 525 | | (75) |
+-+----------------------------------------------+-------+--+-------------+--+-------------+
| | Share of results of associate | | | (83) | | (375) |
+-+----------------------------------------------+-------+--+-------------+--+-------------+
| | | | | | | | |
+-+-+--------------------------------------------+-------+--+-------------+--+-------------+
| | Operating (loss) / profit before working | | | (596) | | 1,682 |
| | capital changes | | | | | |
+-+----------------------------------------------+-------+--+-------------+--+-------------+
| | Changes in working capital: | | | | | |
+-+----------------------------------------------+-------+--+-------------+--+-------------+
| | | Increase in amount owing by a related | | | (28) | | (963) |
| | | party | | | | | |
+-+-+--------------------------------------------+-------+--+-------------+--+-------------+
| | | Decrease in other receivables | | | 10 | | 180 |
+-+-+--------------------------------------------+-------+--+-------------+--+-------------+
| | | Decrease in accruals and provisions | | | (153) | | (1,855) |
+-+-+--------------------------------------------+-------+--+-------------+--+-------------+
| | Cash for operations | | | (767) | | (956) |
+-+----------------------------------------------+-------+--+-------------+--+-------------+
| | | | | | | | |
+-+-+--------------------------------------------+-------+--+-------------+--+-------------+
| | Net cash for operating activities | | | (767) | | (956) |
+-+----------------------------------------------+-------+--+-------------+--+-------------+
| | | | | | |
+------------------------------------------------+-------+--+-------------+--+-------------+
| Cash flows for investing activities | | | | | |
+------------------------------------------------+-------+--+-------------+--+-------------+
| | Acquisition of plant and equipment | | | (18) | | - |
+-+----------------------------------------------+-------+--+-------------+--+-------------+
| | Acquisition of an associate | | | - | | (19,188) |
+-+----------------------------------------------+-------+--+-------------+--+-------------+
| | Interest received | | | 7 | | 64 |
+-+----------------------------------------------+-------+--+-------------+--+-------------+
| | Net cash for investing activities | | | (11) | | (19,124) |
+-+----------------------------------------------+-------+--+-------------+--+-------------+
| | | | | | | | |
+-+-+--------------------------------------------+-------+--+-------------+--+-------------+
| Cash flows (for) / from financing activities | | | | | |
+------------------------------------------------+-------+--+-------------+--+-------------+
| | (Repayment of) / Proceeds from Murabahah | 6 | | (522) | | 16,816 |
| | Loan Notes | | | | | |
+-+----------------------------------------------+-------+--+-------------+--+-------------+
| | Repayment to related parties | | | (160) | | (1,540) |
+-+----------------------------------------------+-------+--+-------------+--+-------------+
| | Net cash (for) / from financing activities | | | (682) | | 15,276 |
+-+----------------------------------------------+-------+--+-------------+--+-------------+
| | | | | | | | |
+-+-+--------------------------------------------+-------+--+-------------+--+-------------+
| Net decrease in cash and cash equivalents | | | (1,460) | | (4,804) |
+------------------------------------------------+-------+--+-------------+--+-------------+
| | | | | | | | |
+-+-+--------------------------------------------+-------+--+-------------+--+-------------+
| Cash and cash equivalents at the beginning of | | | 1,561 | | 6,323 |
| the year | | | | | |
+------------------------------------------------+-------+--+-------------+--+-------------+
| | | | | | | | |
+-+-+--------------------------------------------+-------+--+-------------+--+-------------+
| Effect of foreign exchange rate changes on | | | (31) | | 42 |
| cash and cash equivalents | | | | | |
+------------------------------------------------+-------+--+-------------+--+-------------+
| | | | | | | | |
+-+-+--------------------------------------------+-------+--+-------------+--+-------------+
| Cash and cash equivalents at end of year (i) | | | 70 | | 1,561 |
+------------------------------------------------+-------+--+-------------+--+-------------+
| | | | | | | | |
+-+-+--------------------------------------------+-------+--+-------------+--+-------------+
| i) Cash and cash equivalents | | | | | |
+------------------------------------------------+-------+--+-------------+--+-------------+
| | | | | | | |
+-+----------------------------------------------+-------+--+-------------+--+-------------+
| | Cash and bank balances | | | 70 | | 1,561 |
+-+----------------------------------------------+-------+--+-------------+--+-------------+
| | | | | | 70 | | 1,561 |
+-+-+--------------------------------------------+-------+--+-------------+--+-------------+
This is the unaudited final report on the consolidated cash flow statements for
the financial year ended 31 December 2008 announced by the Company in compliance
with AIM requirements.
The unaudited consolidated cash flow statements should be read in conjunction
with the audited financial statements for the financial year ended 31 December
2007 and the accompanying explanatory notes attached to the financial
statements.
NOTES TO THE FINANCIAL REPORT
1. Basis of Preparation
The financial statements are unaudited and have been presented in accordance to
International Financial Reporting Standards and the requirements of AIM rules
for the financial year ended 31 December 2008.
2. Qualification of Financial Statements
The auditor's report on the latest audited financial statements for the
financial year ended 31 December 2007 was not subject to any audit
qualification.
3. Accounting Convention
The financial statements are prepared under the historical cost convention and
on the going concern basis.
4. Basis of Consolidation
a. Subsidiaries
The consolidated financial statements include the financial statement of the
Company and its subsidiary as at the balance sheet date.
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 unrealized gains on transactions are
eliminated; unrealized 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. Basis of Consolidation (Continued)
b. Associates
Associates are entities in which the Group has significant influence and that is
neither a subsidiary nor an interest in a joint venture. Significant influence
is the power to participate in the financial and operating policy decisions of
the investee but not in control or joint control over those policies.
Investments in associates are accounted for in the consolidated financial
statements using the equity method of accounting. Under the equity method, the
investment in associate is carried in the consolidated balance sheet at cost
adjusted for post-acquisition changes in the Group's share of net assets of the
associate. The Group's share of the net profit or loss of the associate is
recognised in the consolidated profit or loss. Where there has been a change
recognised directly in the equity of the associate, the Group recognises its
share of such changes. In applying the equity method, unrealised gains and
losses on transactions between the Group and the associate are eliminated to the
extent of the Group's interest in the associate. After application of the equity
method, the Group determines whether it is necessary to recognise any additional
impairment loss with respect to the Group's net investment in the associate. The
associate is equity accounted for from the date the Group obtains significant
influence until the date the Group ceases to have significant influence over the
associate.
Goodwill relating to an associate is included in the carrying amount of the
investment and is not amortised. Any excess of the Group's share of the net fair
value of the associate's identifiable assets, liabilities and contingent
liabilities over the cost of the investment is excluded from the carrying amount
of the investment and is instead included as income in the determination of the
Group's share of the associate's profit or loss in the period in which the
investment is acquired. When the Group's share of losses in an associate equals
or exceeds its interest in the associate, including any long-term interests
that, in substance, form part of the Group's net investment in the associates,
the Group does not recognise further losses, unless it has incurred obligations
or made payments on behalf of the associate. The most recent available audited
financial statements of the associates are used by the Group in applying the
equity method. Where the dates of the audited financial statements used are not
coterminous with those of the Group, the share of results is arrived at from the
last audited financial statements available and management financial statements
to the end of the accounting period. Uniform accounting polices are adopted for
like transactions and events in similar circumstances. In the Company's separate
financial statements, investments in associates are stated at cost less
impairment losses.
On disposal of such investments, the difference between net disposal proceeds
and their carrying amounts is included in profit or loss.
5. Loss per share
Basic loss per share is calculated by dividing the net loss for the year by the
weighted average number of ordinary shares in issue during the financial year.
+---------------+-------------------------------------------------+----------------+--------------+
| | | (UNAUDITED) | (AUDITED) |
| | | YEAR | YEAR |
| | | ENDED | ENDED |
| | | 31.12.08 | 31.12.2007 |
+---------------+-------------------------------------------------+----------------+--------------+
| | Net loss for the year (USD'000) | (8,231) | (931) |
+---------------+-------------------------------------------------+----------------+--------------+
| | Weighted average number of ordinary shares in | 87,947,113 | 40,100,000 |
| | issue | | |
+---------------+-------------------------------------------------+----------------+--------------+
| | Loss per share (cents) | (9) | (2) |
+---------------+-------------------------------------------------+----------------+--------------+
6. Murabahah Loan Notes
The Company negotiated the repayment term of the redemption price of Murabahah
Loan Notes ("Loan Notes") of USD1,738,600, with the subscribers which is due on
21 January 2008.
The subscriber has extended the partial repayment of USD521,581 to 1 April 2008
and USD 1,217,019 will be repayable on 21 January 2009 at non-interest bearing.
The Company repaid USD521,581 to subscribers on 1 Apr 2008. Balance of Loan
Notes USD19,713,519 were redeemed by the issue of 153,614,481 ordinary shares
(no par value) at 7 pence per share on 3 September 2008 and admitted to AIM on 9
September 2008.
7. Material Events During the Financial Year Ended 31 December 2008
on 18 July 2008 the Company has announced that:
(i) it has entered into agreements with each of the holders of the Murabahah
Loan Notes issued by the Company in January 2007 ("Loan Notes") to vary the
terms of the Loan Notes to allow their redemption by way of an issue of ordinary
shares in the Company at 7 pence per share;
(ii) upon the conversions, the Company will issue an aggregate of up to
143,289,763 new ordinary shares of no par value, representing 358.22 per cent of
the current issued share capital;
(iii) the conversions and issue of new ordinary shares, which are subject to
certain conditions, are expected to take place in mid August; and
(iv) a capital reorganisation, pursuant to which the companies existing
ordinary shares of 10p will be converted to new ordinary shares of no par value.
On 24 July 2008, the Company has announced that it posted a circular to all
shareholders containing a notice of Extraordinary General Meeting ("EGM") to be
held at 5.00p.m. (Malaysian time) on 15 August 2008.
The following resolutions have been approved in the EGM held on 15 August 2008:
(i) Convert all the Existing Ordinary Shares into "No Par Value" ordinary
shares;
(ii) Increase to unlimited authorized share capital;
(iii) Amend the Memorandum of Association;
(iv) Amend the Article of Association;
(v) Specific approval for Directors to issue ordinary shares pursuant to the
Conversions of Loan Notes without pre-emption rights;
(vi) General approval for Directors to issue ordinary share for cash without
pre-emption rights.
7. Material Events During the Financial Year Ended 31 December 2008
(Con'd)
On 3 September 2008, the Company has announced that following shareholders'
approval to the amendment of the terms of the Loan Notes, the Company has
received notices in respect of US$19,713,519 Loan Notes. The Loan Notes have
been redeemed by the issue of 153,614,481 Ordinary Shares ("Share(s)") at 7
pence per Share on the same date.
Following the conversion of the Loan Notes, the holders of the Loan Notes were
issued the following number of Shares:
+----------------+------------------------+----------------+----------------------+----------------+
| | Loan Notes Holder | Shares Upon | Resultant holding | Percentage |
| | | Conversion | | |
+----------------+------------------------+----------------+----------------------+----------------+
| | Green Packet Berhad | 41,107,378 | 53,107,378 | 27.42% |
+----------------+------------------------+----------------+----------------------+----------------+
| | mTouche Technology | 61,436,873 | 73,436,873 | 37.91% |
| | Berhad | | | |
+----------------+------------------------+----------------+----------------------+----------------+
| | OSK Ventures | 30,730,963 | 36,730,963 | 18.96% |
| | International Berhad | | | |
+----------------+------------------------+----------------+----------------------+----------------+
| | Wago Group Limited | 20,339,267 | 20,339,267 | 10.50% |
+----------------+------------------------+----------------+----------------------+----------------+
The Company has made application for 153,614,481 new Shares and was admitted to
AIM on 9 September 2008.
Following this issue, the Company now has 193,714,481 Shares of no par value in
issue.
- Ends -
This information is provided by RNS
The company news service from the London Stock Exchange
END
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