TIDMMEDI
RNS Number : 3316T
Medilink-Global UK Limited
27 September 2010
27 September 2010
MediLink-Global UK Limited
("MediLink" or "the Company")
HALF-YEARLY REPORT for the six months to 30 june 2010
MediLink, the provider of electronic healthcard network services to insurance
companies and corporate organisations to help them facilitate the administration
of medical claims and healthcare data management, announces its interim results
for the six months ended 30 June 2010. Results are in line with management's
expectations.
Financial highlights
· Revenue increased by 14.3% to GBP769,000 (H1 2009: GBP673,000);
· Contribution from China operations grew 3 times to 20% (H1 2009: 7%) of
total revenue to GBP151,000 (2009: GBP44,000);
· Revenue contribution from Singapore operations was GBP264,000 (H1 2009:
GBP157,000); and
· Operating loss of GBP330,000 (H1 2009: GBP427,000 operating loss), mainly
attributable to costs of expansion in China.
Operational highlights
· On 1 January 2010, the company entered into an arrangement with Qualitas
to provide localized administration and Provider Network Management Services for
Malaysia Out-Patient services.
· On 1 February 2010, the company renewed a 3 year contract with Global
Benefits Group.
· On 12 February 2010, the company renewed a 2 year contract with American
International Assurance Company (Bermuda) Limited.
Enquiries:
+-------------------------------+-------------------------------+
| MediLink-Global UK Limited | Allenby Capital Limited |
+-------------------------------+-------------------------------+
| Shia Kok Fat, Chief Executive | Nick Athanas |
| Officer | |
+-------------------------------+-------------------------------+
| Tel: 00 603 2296 3028 | James Reeve |
+-------------------------------+-------------------------------+
| www.medilink-global.com | Tel: +44(0)20 3328 5656 |
+-------------------------------+-------------------------------+
| | |
+-------------------------------+-------------------------------+
CHAIRMAN'S STATEMENT
Medilink is pleased to present the group's unaudited results for the six month
period ended 30 June 2010.
FINANCIAL REVIEW
The Group recorded revenues of GBP769,000 (H1 2009: GBP673,000) and a loss after
tax of GBP334,000 (H1 2009: GBP441,000) for the six months ended 30 June 2010.
Revenues have increased by 14% over the same period last year mainly due to the
growth of the group's operations in China and Singapore. The Malaysian
operating entities continued to make the largest contribution of 46% (H1 2009:
70%) of the Group revenue's for the period under review. Revenue generated in
Malaysia in the period was GBP354,000 (H1 2009: GBP472,000) and this decrease is
attributable to lower software licensing income in the period. However
contributions from China and Singapore operations at 20% (H1 2009: 7%) and 34%
(H1 2009: 23%) respectively are now making a more significant impact on the
business. The operating loss for the period was lower compared to the same
period last year as a result of the higher revenues generated for the period
under review, which is in line with management expectations. The main factors
contributing to the loss were the high operating costs in China associated with
an accelerated pace of expansion in the region, the amortisation of intangible
assets of GBP56,000 and the share of loss of the associated company in Thailand
of GBP10,000 (2009: GBP20,000).
PERIOD IN FOCUS
The first half of 2010 witnessed an increase in member enrollment in China that
led to a significant increase in revenue of 243% over the same period last year,
from GBP44,000 to GBP151,000. The increase in members enrolled in China has
risen by some 60% in the last six months and has more than trebled from the same
stage last year. The number of healthcare providers operating in our network in
China now stands at 266. In April 2010, the Company raised GBP321,198 (before
expenses) at 18 pence per share in order to fund expansion of operations in
China and provide additional working capital. China operation's suffered a 32%
lower loss compared to the same period last year due to higher revenue in the
first half of 2010 and the management is anticipating higher revenue growth in
the second half of 2010.
The increase in revenue from our Singapore operations compared with the same
period of last year was due to shorter reporting period of only 3 months in the
first half of 2009 for our Singapore subsidiary, Lifeinc Holdings Pte Ltd, which
was acquired in April 2009.
The revenue from Malaysia operations is 15% lower compared to the same period
last year as a results of lower software licensing sales in the first half of
2010 and the management is expecting the software licensing sale to increase
substantially in the second half of 2010. The head office in Malaysia has
increased its operating capacity to support our expanding operations in China,
Singapore and Thailand. As a result the operating costs in Malaysia have
increased in the first half of the year. Management now believe the
infrastructure is sufficient to support its international expansion plans and
the Board does not anticipate any further increase in operating costs in
Malaysia in the second half of 2010.
Thailand has now started to generate revenue form its Third Party Administrator
services in the first half of 2010. There are currently 101 healthcare providers
in our network in Thailand. There was no comparative revenue in 2009. As a
result, our Thailand operations sustained a lower loss during the first half of
2010 compared with the same period last year.
PROSPECTS
With the steady increase in member enrollment numbers in all regions especially
in China, the Directors believe that the Group's financial performance should
improve in the second half of 2010. Medilink China has made great advances and
has now contracted to serve 11 prominent insurance companies in the region,
compared with 6 at the same stage last year. The foundations have now been laid
both in terms of infrastructure and clients to act as a base for the expansion
of our subsidiaries to generate sufficient revenues to move towards
profitability in the regions in which we operate.
Norman Lott
Chairman
Consolidated Statement of Comprehensive Income
Period ended 30 June 2010
+----------------------------+------+-----------+-----------+----------+
| | | Period | Period | Year |
| | | Ended | Ended | Ended |
| | | 30.06.10 | 30.06.09 | 31.12.09 |
+----------------------------+------+-----------+-----------+----------+
| | | Unaudited | Unaudited | Audited |
+----------------------------+------+-----------+-----------+----------+
| |Note | GBP'000 | GBP'000 | GBP'000 |
+----------------------------+------+-----------+-----------+----------+
| | | | | |
+----------------------------+------+-----------+-----------+----------+
| Revenue | 5 | 769 | 673 | 1,243 |
+----------------------------+------+-----------+-----------+----------+
| | | | | |
+----------------------------+------+-----------+-----------+----------+
| Cost of sales | | (301) | (300) | (843) |
+----------------------------+------+-----------+-----------+----------+
| | | | | |
+----------------------------+------+-----------+-----------+----------+
| Gross profit | | 468 | 373 | 400 |
+----------------------------+------+-----------+-----------+----------+
| | | | | |
+----------------------------+------+-----------+-----------+----------+
| Other income / (expense) | | 4 | - | (45) |
+----------------------------+------+-----------+-----------+----------+
| | | | | |
+----------------------------+------+-----------+-----------+----------+
| Administrative expenses | | (802) | (800) | (1,256) |
+----------------------------+------+-----------+-----------+----------+
| | | | | |
+----------------------------+------+-----------+-----------+----------+
| Operating loss | | (330) | (427) | (901) |
+----------------------------+------+-----------+-----------+----------+
| | | | | |
+----------------------------+------+-----------+-----------+----------+
| Share of associated | | (10) | (20) | (38) |
| undertakings' losses | | | | |
+----------------------------+------+-----------+-----------+----------+
| Finance expenses | | (3) | (1) | (3) |
+----------------------------+------+-----------+-----------+----------+
| | | | | |
+----------------------------+------+-----------+-----------+----------+
| Loss before taxation | | (343) | (448) | (942) |
+----------------------------+------+-----------+-----------+----------+
| | | | | |
+----------------------------+------+-----------+-----------+----------+
| Taxation | 4 | 9 | 7 | 18 |
+----------------------------+------+-----------+-----------+----------+
| | | | | |
+----------------------------+------+-----------+-----------+----------+
| Loss after taxation and | | | | (924) |
| for the period | | (334) | (441) | |
+----------------------------+------+-----------+-----------+----------+
| | | | | |
+----------------------------+------+-----------+-----------+----------+
| Other Comprehensive Income | | | |
+-----------------------------------+-----------+-----------+----------+
| Exchange differences on | (58) | | - |
| translating | | 46 | |
| foreign operations | | | |
+-----------------------------------+-----------+-----------+----------+
| | | | |
+-----------------------------------+-----------+-----------+----------+
| Total comprehensive income | (392) | | (924) |
| for the period | | (395) | |
| net of tax | | | |
+-----------------------------------+-----------+-----------+----------+
| | | | |
+-----------------------------------+-----------+-----------+----------+
| Loss per share (pence) | | | |
+-----------------------------------+-----------+-----------+----------+
| Basic | 2 | (0.32) | (0.43) | (0.89) |
+----------------------------+------+-----------+-----------+----------+
| Diluted* | 2 | (0.32) | (0.43) | (0.89) |
+----------------------------+------+-----------+-----------+----------+
| | | | | |
+----------------------------+------+-----------+-----------+----------+
* In accordance with IAS33 "Earnings per share" and where the Group has reported
a loss for the period, the shares are not dilutive. The Group have not issued
any instrument with dilutive effect.
Consolidated Statement of Financial Position
As at 30 June 2010
+--------------------------+------+-----------+-----------+----------+
| | | 30.06.10 | 30.06.09 | 31.12.09 |
+--------------------------+------+-----------+-----------+----------+
| |Note | Unaudited | Unaudited | Audited |
+--------------------------+------+-----------+-----------+----------+
| | | GBP'000 | GBP'000 | GBP'000 |
+--------------------------+------+-----------+-----------+----------+
| ASSETS | | | | |
| Non-current assets | | | | |
+--------------------------+------+-----------+-----------+----------+
| Intangible assets | | 4,357 | 4,456 | 4,413 |
+--------------------------+------+-----------+-----------+----------+
| Property, plant and | | 223 | 244 | 236 |
| equipment | | | | |
+--------------------------+------+-----------+-----------+----------+
| Investments | | 7 | 35 | 17 |
+--------------------------+------+-----------+-----------+----------+
| | | | | |
+--------------------------+------+-----------+-----------+----------+
| Total non-current assets | | 4,587 | 4,735 | 4,666 |
+--------------------------+------+-----------+-----------+----------+
| | | | | |
+--------------------------+------+-----------+-----------+----------+
| Current assets | | | | |
+--------------------------+------+-----------+-----------+----------+
| Trade and other | | 964 | 704 | 784 |
| receivables | | | | |
+--------------------------+------+-----------+-----------+----------+
| Cash and cash | | 461 | 469 | 315 |
| equivalents | | | | |
+--------------------------+------+-----------+-----------+----------+
| | | | | |
+--------------------------+------+-----------+-----------+----------+
| Total current assets | | 1,425 | 1,173 | 1,099 |
+--------------------------+------+-----------+-----------+----------+
| | | | | |
+--------------------------+------+-----------+-----------+----------+
| TOTAL ASSETS | | 6,012 | 5,908 | 5,765 |
+--------------------------+------+-----------+-----------+----------+
| | | | | |
+--------------------------+------+-----------+-----------+----------+
| EQUITY | | | | |
| Capital and Reserves | | | | |
+--------------------------+------+-----------+-----------+----------+
| Share capital | 6 | 5,282 | 5,167 | 5,193 |
+--------------------------+------+-----------+-----------+----------+
| Share premium account | 6 | 951 | 678 | 737 |
+--------------------------+------+-----------+-----------+----------+
| Reserves | | (1,301) | (474) | (909) |
+--------------------------+------+-----------+-----------+----------+
| | |
+--------------------------+-----------------------------------------+
| Total equity | | 4,932 | 5,371 | 5,021 |
+--------------------------+------+-----------+-----------+----------+
+--------------------------+----------+----+---------+---------+---------------+
| Current liabilities | | | | |
+-------------------------------------+----+---------+---------+---------------+
| Trade and other payables | | 1,008 | 463 | 664 |
+-------------------------------------+----+---------+---------+---------------+
| Borrowings | | 7 | 17 | 15 |
+-------------------------------------+----+---------+---------+---------------+
| | | | | |
+-------------------------------------+----+---------+---------+---------------+
| Total current liabilities | | 1,015 | 480 | 679 |
+-------------------------------------+----+---------+---------+---------------+
| | | |
+--------------------------+---------------+-----------------------------------+
| Non-current liabilities | | | | |
+--------------------------+---------------+---------+---------+---------------+
| Borrowings | | - | 3 | 1 |
+--------------------------+---------------+---------+---------+---------------+
| Other payables | | 18 | 10 | 8 |
+--------------------------+---------------+---------+---------+---------------+
| Deferred tax liabilities | | 47 | 44 | 56 |
+--------------------------+---------------+---------+---------+---------------+
| | | | | |
+--------------------------+---------------+---------+---------+---------------+
| Total non-current | | 65 | 57 | 65 |
| liabilities | | | | |
+--------------------------+---------------+---------+---------+---------------+
| | | | | |
+--------------------------+---------------+---------+---------+---------------+
| TOTAL EQUITY AND | | 6,012 | 5,908 | 5,765 |
| LIABILITIES | | | | |
+--------------------------+---------------+---------+---------+---------------+
| | | | | |
+--------------------------+---------------+---------+---------+---------------+
| | | | | | |
+--------------------------+----------+----+---------+---------+---------------+
Consolidated Statement of Cash Flows
Six months ended 30 June 2010
+--------------------------------------+--------------------------------------+-----------+----------+
| | 30.06.10 | 30.06.09 | 31.12.09 |
| | | | |
+--------------------------------------+--------------------------------------+-----------+----------+
| | Unaudited | Unaudited | Audited |
+--------------------------------------+--------------------------------------+-----------+----------+
| | GBP'000 | GBP'000 | GBP'000 |
+--------------------------------------+--------------------------------------+-----------+----------+
| Cash flows from operating activities | | | |
+--------------------------------------+--------------------------------------+-----------+----------+
| Loss before taxation | (343) | (448) | (942) |
+--------------------------------------+--------------------------------------+-----------+----------+
| Adjustments for: | | | |
+--------------------------------------+--------------------------------------+-----------+----------+
| Amortisation of intangible assets | 56 | 34 | 104 |
+--------------------------------------+--------------------------------------+-----------+----------+
| Depreciation of property, plant and | 82 | 52 | 114 |
| equipment | | | |
+--------------------------------------+--------------------------------------+-----------+----------+
| Provision for bonus payable in | - | - | 94 |
| shares | | | |
+--------------------------------------+--------------------------------------+-----------+----------+
| Share of loss of associated company | 10 | 20 | 38 |
+--------------------------------------+--------------------------------------+-----------+----------+
| Finance costs | 3 | 1 | 3 |
+--------------------------------------+--------------------------------------+-----------+----------+
| Cash from operating activities | (192) | (341) | (589) |
| before changes in working capital | | | |
+--------------------------------------+--------------------------------------+-----------+----------+
| Decrease in inventories | - | 51 | 51 |
+--------------------------------------+--------------------------------------+-----------+----------+
| Increase in trade and other | (180) | (301) | (381) |
| receivables | | | |
+--------------------------------------+--------------------------------------+-----------+----------+
| Increase in trade and other payables | 344 | 194 | 388 |
+--------------------------------------+--------------------------------------+-----------+----------+
| Cash flows from operations | (28) | (397) | (531) |
+ +--------------------------------------+-----------+----------+
| | | | |
+--------------------------------------+--------------------------------------+-----------+----------+
| Tax paid | - | (7) | (4) |
+--------------------------------------+--------------------------------------+-----------+----------+
| Interest paid | (3) | (1) | (3) |
+--------------------------------------+--------------------------------------+-----------+----------+
| Net cash used in operations | (31) | (405) | (538) |
+--------------------------------------+--------------------------------------+-----------+----------+
| | | | |
+--------------------------------------+--------------------------------------+-----------+----------+
| Investing activities | | | |
+--------------------------------------+--------------------------------------+-----------+----------+
| Purchase of property, plant and | (62) | (73) | (127) |
| equipment | | | |
+--------------------------------------+--------------------------------------+-----------+----------+
| Proceed from disposal of property, | 15 | - | - |
| plant and equipment | | | |
+--------------------------------------+--------------------------------------+-----------+----------+
| Acquisition of a subsidiary | - | (208) | (208) |
+--------------------------------------+--------------------------------------+-----------+----------+
| Investment in associated company | - | (35) | (35) |
+--------------------------------------+--------------------------------------+-----------+----------+
| Net cash used in investing | (47) | (316) | (370) |
| activities | | | |
+--------------------------------------+--------------------------------------+-----------+----------+
| | | | |
+--------------------------------------+--------------------------------------+-----------+----------+
| Financing activities | | | |
+--------------------------------------+--------------------------------------+-----------+----------+
| Proceeds from issue of shares | 321 | - | 97 |
+--------------------------------------+--------------------------------------+-----------+----------+
| Share issue costs | (18) | - | (11) |
+--------------------------------------+--------------------------------------+-----------+----------+
| Repayment of bank borrowings | (9) | (10) | (15) |
+--------------------------------------+--------------------------------------+-----------+----------+
| Repayment of hire purchase | (12) | (2) | (4) |
| liabilities | | | |
+--------------------------------------+--------------------------------------+-----------+----------+
| Net cash generated by/(used in) | 282 | (12) | 67 |
| financing activities | | | |
+ +--------------------------------------+-----------+----------+
| | | | |
+--------------------------------------+--------------------------------------+-----------+----------+
| Net increase/(decrease) in cash and | 204 | (733) | (841) |
| cash equivalents | | | |
+ +--------------------------------------+-----------+----------+
| | | | |
+--------------------------------------+--------------------------------------+-----------+----------+
| Effect of exchange rate changes | (58) | 46 | - |
+--------------------------------------+--------------------------------------+-----------+----------+
| Cash and cash equivalents at the | | | |
| beginning of the period | 315 | 1,156 | 1,156 |
+--------------------------------------+--------------------------------------+-----------+----------+
| | | | |
+--------------------------------------+--------------------------------------+-----------+----------+
| Cash and cash equivalents at the end | 461 | 469 | 315 |
| of the period | | | |
+ +--------------------------------------+-----------+----------+
| | | | |
+--------------------------------------+--------------------------------------+-----------+----------+
Consolidated Statement of Changes in Shareholder' Equity
+-------------+----------+----------+----+---------+---------+----------+----------+---------+
| For the six month period ended 30 June 2010 (unaudited) | | |
+-----------------------------------------------------------------------+----------+---------+
| | | | | Share | Share | Foreign | Retained | Total |
| | | | | capital | premium | exchange | Earnings | |
| | | | | | | reserve | | |
+-------------+----------+----------+----+---------+---------+----------+----------+---------+
| | | | | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-------------+----------+----------+----+---------+---------+----------+----------+---------+
| Balance as at 1 January 2009 | 5,167 | 678 | (34) | (45) | 5,766 |
+----------------------------------------+---------+---------+----------+----------+---------+
| | | | | | | | | |
+-------------+----------+----------+----+---------+---------+----------+----------+---------+
| Loss for | | | | - | - | - | (441) | (441) |
| the period | | | | | | | | |
+-------------+----------+----------+----+---------+---------+----------+----------+---------+
| Exchange differences | - | - | 46 | - | (46) |
+----------------------------------------+---------+---------+----------+----------+---------+
| Total comprehensive income for the | - | - | 46 | (441) | (395) |
| period | | | | | |
+----------------------------------------+---------+---------+----------+----------+---------+
| Balance as at 30 June 2009 | 5,167 | 678 | 12 | (486) | 5,371 |
+-------------+----------+----------+----+---------+---------+----------+----------+---------+
+--------------+----------+----------+-----------+--+-------+-------+-------+---------+--------+
| Balance as at 1 July 2009 | 5,167 | 678 | 12 | (486) | 5,371 |
+---------------------------------------------------+-------+-------+-------+---------+--------+
| | | | | | | | | |
+--------------+----------+----------+--------------+-------+-------+-------+---------+--------+
| Loss for the period | - | - | - | (483) | (483) |
+---------------------------------------------------+-------+-------+-------+---------+--------+
| Exchange differences | - | - | (46) | - | (46) |
+---------------------------------------------------+-------+-------+-------+---------+--------+
| Total comprehensive income for the period | - | - | (46) | (483) | (529) |
+---------------------------------------------------+-------+-------+-------+---------+--------+
| Provision for bonus payable in shares | - | - | - | 94 | 94 |
+---------------------------------------------------+-------+-------+-------+---------+--------+
| Issue of shares | 26 | 70 | - | - | 96 |
+---------------------------------------------------+-------+-------+-------+---------+--------+
| Share issue costs | - | (11) | - | - | (11) |
+---------------------------------------------------+-------+-------+-------+---------+--------+
| Balance as at 31 December 2009 | 5,193 | 737 | (34) | (875) | 5,021 |
+---------------------------------------------------+-------+-------+-------+---------+--------+
| | | | | | | | | |
+--------------+----------+----------+--------------+-------+-------+-------+---------+--------+
| Balance as at 1 January 2010 | 5,193 | 737 | (34) | (875) | 5,021 |
+------------------------------------------------+----------+-------+-------+---------+--------+
| | | | | | | | | |
+--------------+----------+----------+-----------+----------+-------+-------+---------+--------+
| Loss for the period | - | - | - | (334) | (334) |
+------------------------------------------------+----------+-------+-------+---------+--------+
| Exchange differences | - | - | (58) | - | (58) |
+------------------------------------------------+----------+-------+-------+---------+--------+
| Total comprehensive income for the period | - | - | (58) | (334) | (392) |
+------------------------------------------------+----------+-------+-------+---------+--------+
| Share capital issued | 89 | 232 | - | - | 321 |
+------------------------------------------------+----------+-------+-------+---------+--------+
| Share issue costs | - | (18) | - | - | (18) |
+------------------------------------------------+----------+-------+-------+---------+--------+
| Balance as at 30 June 2010 | 5,282 | 951 | (92) | (1,209) | 4,932 |
+------------------------------------------------+----------+-------+-------+---------+--------+
| | | | | | | | | | |
+--------------+----------+----------+-----------+--+-------+-------+-------+---------+--------+
Notes to the Interim Financial Statement
Period ended 30 June 2010
1 Basis of preparation
The financial statements have been prepared in accordance with International
Financial Reporting Standards (IFRS) as adopted by the European Union. The
principal accounting policies used in preparing the interim results are those
the group expects to apply in its financial statements for the year ending 31
December 2010 and are unchanged from those disclosed in the group's Report and
Financial Statements for the year ended 31 December 2009.
The interim results have been reviewed but not audited by the Company's
auditors. The comparatives for the period ended 31 December 2009 are not the
Company's full statutory accounts for that period. A copy of the statutory
accounts for that period, which were prepared under IFRS, have been delivered to
the Registrar of Companies. The auditors' report on those accounts was
unqualified.
Whilst the financial information included in this Interim Financial information
has been prepared in accordance with the recognition and measurement criteria of
IFRS, it does not include sufficient information to comply with IFRS.
The financial information set out in this announcement was approved by the board
on 27 September 2010.
2 Basic and diluted loss per ordinary share
Basic loss per share is calculated by dividing the loss attributable to equity
holders of the Company by the weighted average number of ordinary shares in
issue during the period. In accordance with IAS 33 and where the Group has
reported a loss for the period the shares are not diluted
+----------------------------------+-------------+---------------------+-------------+
| | Period | Period | Year |
| | ended | ended | ended |
| | 30.06.10 | 30.06.09 | 31.12.09 |
+----------------------------------+-------------+---------------------+-------------+
| | GBP'000 | GBP'000 | GBP'000 |
| | (unaudited) | (unaudited) | (audited) |
+----------------------------------+-------------+---------------------+-------------+
| Loss after taxation | (334) | (441) | (924) |
+----------------------------------+-------------+---------------------+-------------+
| | | | |
+----------------------------------+-------------+---------------------+-------------+
| Basic weighted average shares in | 104,247,178 | 103,330,630 | 103,600,630 |
| issue | | | |
+----------------------------------+-------------+---------------------+-------------+
| Diluted weighted average shares | 104,247,178 | 103,330,630 | 103,600,630 |
| in issue | | | |
+----------------------------------+-------------+---------------------+-------------+
| | | | |
+----------------------------------+-------------+---------------------+-------------+
| Basic loss per share based on | | | |
| issued share capital as at 30 | (0.32) | (0.43) | (0.89) |
| June 2010 (pence) | | | |
+----------------------------------+-------------+---------------------+-------------+
| Diluted loss per share based on | | | |
| issued share capital as at 30 | (0.32) | (0.43) | (0.89) |
| June 2010 (pence) | | | |
+----------------------------------+-------------+---------------------+-------------+
| | | | |
+----------------------------------+-------------+---------------------+-------------+
3 Dividend
The Directors do not propose a dividend in the period.
4 Taxation
The interim tax credit reflects an estimate of the likely effective tax rate for
the period.
5 Turnover and segmental analysis
The Group has adopted IFRS 8 Operating Segments with effect from 1 January 2009.
Per IFRS 8 operating segments are based on internal reports about components of
the group, which are regularly reviewed and used by the Board of Directors being
the Chief Operating Decision Maker ("CODM") for strategic decision making and
resource allocation, in order to allocate resources to the segment and to assess
its performance. The Group's reportable operating segments are as follows:
i) Third party administrator
ii) Software licensing
The CODM monitors the operating results of each segment for the purpose of
performance assessments and making decisions on resource allocation. The
management has organised the entity based on differences in products and
services. Third party administrator segment is derived from aggregating China,
Malaysia and Singapore entity while Software licensing segment represent a
single entity from Malaysia. Performance is based on external and internal
revenue generations and profit before tax, which the CODM believes are the most
relevant in evaluating the results relative to other entities in the industry.
Segment assets and liabilities are presented inclusive of inter segment
balances, as inter-segment pricing. Information regarding each of the operations
of each reportable segment is included below.
+--------------------+---------------+-----------+---------------+---------+
| | Third | Software | | |
| 30 June 2010 | party | licensing | Consolidation | Total |
| (unaudited) | administrator | | | |
+--------------------+---------------+-----------+---------------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+--------------------+---------------+-----------+---------------+---------+
| External revenue | 746 | 23 | | 769 |
+--------------------+---------------+-----------+---------------+---------+
| Internal revenue | - | 47 | (47) | - |
+--------------------+---------------+-----------+---------------+---------+
| Total revenue | 746 | 70 | (47) | 769 |
+--------------------+---------------+-----------+---------------+---------+
| | | | | |
+--------------------+---------------+-----------+---------------+---------+
| Interest expenses | (3) | - | - | (3) |
+--------------------+---------------+-----------+---------------+---------+
| Depreciation and | (126) | (12) | - | (138) |
| amortisation | | | | |
+--------------------+---------------+-----------+---------------+---------+
| Corporation tax | 9 | - | - | 9 |
+--------------------+---------------+-----------+---------------+---------+
| Earning before tax | (294) | (49) | - | (343) |
| (EBT) | | | | |
+--------------------+---------------+-----------+---------------+---------+
| | | | | |
+--------------------+---------------+-----------+---------------+---------+
| Assets | 9,474 | 321 | (3,783) | 6,012 |
+--------------------+---------------+-----------+---------------+---------+
| Liabilities | (3,333) | (291) | 2,544 | (1,080) |
+--------------------+---------------+-----------+---------------+---------+
(i) The assets of third party administrator are including the goodwill on
consolidation of GBP4,138,000.
Revenues from two customers amounted to GBP184,000 : ING Insurance Bhd
GBP113,000 and AXA Insurance Bhd GBP71,000 (1H 2009: GBP 177,000: ING Insurance
Bhd GBP108,000 and AXA Insurance Bhd GBP69,000), arising from sales by third
party administrator segment.
+--------------------+---------------+-----------+---------------+---------+
| | Third | Software | | |
| 30 June 2009 | party | licensing | Consolidation | Total |
| (unaudited) | administrator | | | |
+--------------------+---------------+-----------+---------------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+--------------------+---------------+-----------+---------------+---------+
| External revenue | 527 | 146 | - | 673 |
+--------------------+---------------+-----------+---------------+---------+
| Internal revenue | - | 47 | (47) | - |
+--------------------+---------------+-----------+---------------+---------+
| Total revenue | 527 | 193 | (47) | 673 |
+--------------------+---------------+-----------+---------------+---------+
| | | | | |
+--------------------+---------------+-----------+---------------+---------+
| Interest expenses | (1) | - | - | (1) |
+--------------------+---------------+-----------+---------------+---------+
| Depreciation and | (76) | (10) | - | (86) |
| amortisation | | | | |
+--------------------+---------------+-----------+---------------+---------+
| Corporation tax | - | - | - | - |
+--------------------+---------------+-----------+---------------+---------+
| Earning before tax | (448) | - | - | (448) |
| (EBT) | | | | |
+--------------------+---------------+-----------+---------------+---------+
| | | | | |
+--------------------+---------------+-----------+---------------+---------+
| Assets | 7,793 | 179 | (2,064) | 5,908 |
+--------------------+---------------+-----------+---------------+---------+
| Liabilities | (1,609) | (95) | 1,167 | (537) |
+--------------------+---------------+-----------+---------------+---------+
(i) The assets of third party administrator are including the goodwill on
consolidation of GBP4,138,000.
+--------------------+---------------+-----------+---------------+---------+
| | Third | Software | | |
| 31 December 2009 | party | licensing | Consolidation | Total |
| (audited) | administrator | | | |
+--------------------+---------------+-----------+---------------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+--------------------+---------------+-----------+---------------+---------+
| External revenue | 1,096 | 147 | - | 1,243 |
+--------------------+---------------+-----------+---------------+---------+
| Internal revenue | - | 69 | (69) | - |
+--------------------+---------------+-----------+---------------+---------+
| Total revenue | 1,096 | 216 | (69) | 1,243 |
+--------------------+---------------+-----------+---------------+---------+
| | | | | |
+--------------------+---------------+-----------+---------------+---------+
| Interest revenue | 1 | - | - | 1 |
+--------------------+---------------+-----------+---------------+---------+
| Interest expenses | (3) | - | - | (3) |
+--------------------+---------------+-----------+---------------+---------+
| Depreciation and | (197) | (21) | - | (218) |
| amortisation | | | | |
+--------------------+---------------+-----------+---------------+---------+
| Corporation tax | 17 | 1 | - | 18 |
+--------------------+---------------+-----------+---------------+---------+
| Earning before tax | (932) | (10) | - | (942) |
| (EBT) | | | | |
+--------------------+---------------+-----------+---------------+---------+
| | | | | |
+--------------------+---------------+-----------+---------------+---------+
| Assets | 7,766 | 250 | (2,251) | 5,765 |
+--------------------+---------------+-----------+---------------+---------+
| Liabilities | (1,935) | (176) | 1,367 | (744) |
+--------------------+---------------+-----------+---------------+---------+
(ii) The assets of third party administrator are including the goodwill on
consolidation of GBP4,138,000.
Revenues from two customers amounted to GBP349,000 : ING Insurance Bhd
GBP204,000 and AXA Insurance Bhd GBP145,000, arising from sales by third party
administrator segment.
The geographical split of revenue and non-current assets arises as follows:
+-------------------+---------+-----------+---------+----------+---------+
| | | | | | |
| 30 June 2010 | UK | Singapore | China | Malaysia | Total |
| (unaudited) | | | | | |
+-------------------+---------+-----------+---------+----------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-------------------+---------+-----------+---------+----------+---------+
| Revenue | - | 264 | 151 | 354 | 769 |
+-------------------+---------+-----------+---------+----------+---------+
| Intangible assets | 219 | | - | - | 219 |
| | | - | | | |
+-------------------+---------+-----------+---------+----------+---------+
| Goodwill | 4,138 | - | - | - | 4,138 |
+-------------------+---------+-----------+---------+----------+---------+
| PPE | - | 24 | 68 | 131 | 223 |
+-------------------+---------+-----------+---------+----------+---------+
| | | | | | |
+-------------------+---------+-----------+---------+----------+---------+
| | | | | | |
| 30 June 2009 | UK | Singapore | China | Malaysia | Total |
| (unaudited) | | | | | |
+-------------------+---------+-----------+---------+----------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-------------------+---------+-----------+---------+----------+---------+
| Revenue | - | 157 | 44 | 472 | 673 |
+-------------------+---------+-----------+---------+----------+---------+
| Intangible assets | 318 | - | - | - | 318 |
+-------------------+---------+-----------+---------+----------+---------+
| Goodwill | 4,138 | - | - | - | 4,138 |
+-------------------+---------+-----------+---------+----------+---------+
| PPE | - | 6 | 18 | 220 | 244 |
+-------------------+---------+-----------+---------+----------+---------+
| | | | | | |
+-------------------+---------+-----------+---------+----------+---------+
| | | | | | |
| 31 Dec 2009 | UK | Singapore | China | Malaysia | Total |
| (audited) | | | | | |
+-------------------+---------+-----------+---------+----------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-------------------+---------+-----------+---------+----------+---------+
| Revenue | - | 374 | 112 | 757 | 1,243 |
+-------------------+---------+-----------+---------+----------+---------+
| Intangible assets | 275 | - | - | - | 275 |
+-------------------+---------+-----------+---------+----------+---------+
| Goodwill | 4,138 | - | - | - | 4,138 |
+-------------------+---------+-----------+---------+----------+---------+
| PPE | - | 21 | 44 | 171 | 236 |
+-------------------+---------+-----------+---------+----------+---------+
6 Share capital
MGL have one class of ordinary share capital which carry no rights to fixed
income, any preferences or restrictions.
a) Authorised share capital (unaudited):
+------------------------------+---------+---------+-----------+
| | Period | Period | Period |
| | ended | ended | ended 31 |
| | 30 | 30 | December |
| | June | June | 2009 |
| | 2010 | 2009 | |
+------------------------------+---------+---------+-----------+
| | GBP'000 | GBP'000 | GBP'000 |
+------------------------------+---------+---------+-----------+
| Authorised: | | | |
+------------------------------+---------+---------+-----------+
| 200,000,000 Ordinary shares | 10,000 | 10,000 | 10,000 |
| of 5p each | | | |
+------------------------------+---------+---------+-----------+
| Issued: | | | |
+------------------------------+---------+---------+-----------+
| 105,650,280 Ordinary shares | 5,282 | | |
| of 5p each | | | |
+------------------------------+---------+---------+-----------+
| 103,865,847 Ordinary shares | | 5,167 | |
| of 5p each | | | |
+------------------------------+---------+---------+-----------+
| 103,330,630 Ordinary shares | | | 5,193 |
| of 5p each | | | |
+------------------------------+---------+---------+-----------+
b) Shares issued during the period (unaudited)
+-------------------------+-------+-------------+---------+----------+
| | GBP | Shares | Share | Share |
| | | | Capital | Premium |
+-------------------------+-------+-------------+---------+----------+
| | | | GBP'000 | GBP'000 |
+-------------------------+-------+-------------+---------+----------+
| | | | | |
+-------------------------+-------+-------------+---------+----------+
| At 1 January 2010 | | 103,865,847 | 5,193 | 737 |
+-------------------------+-------+-------------+---------+----------+
| Shares issued on 19 | 0.18 | 1,784,433 | 89 | 232 |
| April (i) | | | | |
+-------------------------+-------+-------------+---------+----------+
| Share issue costs | | - | - | (18) |
+-------------------------+-------+-------------+---------+----------+
| | | 105,650,280 | 5,282 | 951 |
+-------------------------+-------+-------------+---------+----------+
(i) On 19 April 2010, the Company issued 1,784,433 ordinary shares of 5p each
at a premium of 13p per share for a consideration of GBP321,198.
7 Foreign currency exchange rate
The following significant exchange rates applied during the period:
+------------------+---------------+-----------------+
| | Average Rate | Reporting Date |
+------------------+---------------+-----------------+
| GBP1 : RMB | 10.4028 | 10.1442 |
+------------------+---------------+-----------------+
| GBP1 : SGD | 2.1316 | 2.0883 |
+------------------+---------------+-----------------+
| GBP1 : RM | 5.0326 | 4.8435 |
+------------------+---------------+-----------------+
8 Notice of financial information
These interim results will be available shortly on the Company's website,
www.medilink-global.com in accordance with the AIM Rules. Further copies can be
obtained from the registered office at 31 Pier Road, St. Helier, Jersey, JE4
8PW.
- Ends -
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR GLGDCDSDBGGR
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