TIDMORNT
RNS Number : 8341I
Orient Telecoms PLC
16 December 2020
ORIENT TELECOMS PLC
INTERIM FINANCIAL STATEMENTS
For the six months ended 30 September 2020
Director's Statement
I have pleasure in presenting the interim financial statements
of Orient Telecoms Plc and its subsidiary undertaking (the "Group")
for the six months ended 30 September 2020.
During the financial period, the Group reported a net profit of
GBP7,046 (GBP0.001 profit per share).
The Group has positioned itself as fully managed overlay network
service provider which makes the company very light weight and not
requiring to invest heavily in building the network infrastructure
which may later be at risk due to sudden change in the technology.
Evolution from 4G to 5G is only going to make the company stronger
to offer better services to its customers with greater reach.
With the introduction and race to deploy 5G services across the
region, Orient Telecoms finds itself in a very safe and secure
place by having its approach to provide connectivity riding on 3rd
party infrastructure. As the fixed line telecommunication companies
keeps on growing their 5G reach, Orient Telecoms will follow their
infrastructure to offer its services/platforms to its clients
regionally.
The Group is also working with its partners to introduce new
platforms, cloud based services and other technology solutions. The
next goal is to have its business unit focus on other service
sectors such as Satellite based high speed internet and Smart City
solutions.
The Group expects 2021 to be another challenging year and
competition remain intense as well as the COVID-19 situation
globally slowing down the businesses. Whilst it may not be an easy
year ahead, the Group is committed to continue its efforts in
improving its competitiveness by implementing various strategies
include further negotiating better deals with other network
provider as our business grows, which will enable efficiency in
cost management and optimization. The Group promises to
continuously tap the growth opportunities available in the market.
Barring any unforeseen circumstances, the Group expects better
performance for the year ahead.
Responsibility Statement
The Directors are responsible for preparing the interim
financial statements in accordance with the Disclosure and
Transparency Rules of the United Kingdom's Financial Conduct
Authority ('DTR') and with International Accounting Standard 34 on
Interim Financial Reporting (IAS 34) as adopted by European
Union.
The Directors confirm that, to the best of their knowledge, the
interim financial statements have been prepared in accordance with
IAS 34 as adopted by the European Union. The interim financial
statements include a fair review of the information required by DTR
4.2.7 and DTR 4.2.8, namely:
-- an indication of important events that have occurred during
the first six months and their impact on the interim financial
statements, and a description of the principal risks and
uncertainties for the remaining six months of the financial period;
and
-- material related-party transactions in the first six months
and any material changes in the related-party transactions
described in the last annual report.
Sayed Mustafa Ali
Director
16 December 2020
6 months 6 months
period ended period ended
30 September 30 September
2020 2019
Notes GBP GBP
(Unaudited) (Unaudited)
INCOME 4 317,512 266,445
COST OF SALES (143,238) (87,293)
-------------- --------------
GROSS PROFIT 174,274 179,152
Other operating expenses (173,223) (206,680)
Finance income/(expenses) 7,316 (1,997)
-------------- --------------
OPERATING PROFIT/(LOSS) BEFORE TAXATION 8,367 (29,525)
Income tax expense (1,321) -
-------------- --------------
PROFIT/(LOSS) FOR THE PERIOD ATTRIBUTABLE
TO EQUITY HOLDERS OF THE COMPANY 7,046 (29,525)
OTHER COMPREHENSIVE INCOME
Items that will or may be reclassified
to profit or loss:
Translation of foreign operation (3,532) 7,439
TOTAL COMPREHENSIVE INCOME/(LOSS)
FOR THE PERIOD 3,514 (22,086)
-------------- --------------
Basic and diluted profit/(loss)per
share (LIR) 5 0.001 (0.003)
-------------- --------------
CONDENSED CONSOLIDATED STATEMENT OF COMPREHESIVE INCOME
FOR THE SIX MONTHSED 30 SEPTEMBER 2020
As at As at
30 September 31 March
2020 2020
Notes GBP GBP
(Unaudited) (Audited)
ASSETS
NON-CURRENT ASSETS
Right-of-use assets 6 184,556 70,765
CURRENT ASSETS
Bank 7 343,695 350,692
Trade and other receivables 8 299,858 229,092
643,553 579,784
-------------- ----------
CURRENT LIABILITIES
Trade and other payables 9 239,226 177,471
Lease liabilities 10 186,116 73,825
425,342 251,296
-------------- ----------
NET ASSETS 402,767 399,253
============== ==========
EQUITY ATTRIBUTABLE TO EQUITY
HOLDERS OF THE COMPANY
Share capital 11 1,000,000 1,000,000
Translation reserve 540 4,072
Accumulated losses (597,773) (604,819)
--------------
TOTAL EQUITY 402,767 399,253
============== ==========
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2020
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 30 SEPTEMBER 2020
6 months 6 month
period ended period ended
30 Sept 30 Sept
2020 2019
GBP GBP
Cash flow from operating activities
Profit/(loss) before tax 8,367 (29,525)
Adjustment for:
Unrealised exchange loss 1,512 -
Depreciation of right-of-use-assets 49,954 47,177
Finance income (10,998) (3,097)
Tax expense (1,321) -
Interest on lease liabilities 4,631 5,094
Gain on lease termination (2,461) -
-------------- --------------
49,684 19,649
Changes in working capital
Increase in trade receivables (40,577) (78,137)
(Increase)/Decrease in other receivables (30,189) 213,852
Increase/(Decrease) in trade and other
payables 61,755 (241,644)
-------------- --------------
Cash flow from operations (9,011) (105,929)
Interest received 10,998 3,097
-------------- --------------
Net cash flow generated from/(used in)
operating activities 51,671 (83,183)
-------------- --------------
Cash flow from financing activities
Interest paid (2,170) (5,094)
Repayment on lease liability (57,121) (50,642)
-------------- --------------
Net cash flow used in financing activities (59,291) (55,736)
Net movement in cash and cash equivalents (7,620) (138,919)
Cash and cash equivalents at beginning
of period 350,692 529,278
Exchange gain on cash and cash equivalents 623 7,115
-------------- --------------
Cash and cash equivalents at end of period 343,695 397,474
============== ==============
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Period from 1 April 2020 to 30 September 2020 (unaudited)
Share capital Translation Accumulated Total
reserve losses
GBP GBP GBP GBP
As at 1 April 2020 1,000,000 4,072 (604,819) 399,253
Profit for the period - - 7,046 7,046
Translation of foreign
operation - (3,532) - (3,532)
-------------- ------------ ------------ --------
Total comprehensive
loss for the period - (3,532) 7,046 3,514
-------------- ------------ ------------ --------
As at 30 September 2020 1,000,000 540 (597,773) 402,767
============== ============ ============ ========
Period from 1 April 2019 to 30 Sept 2019 (unaudited)
Share capital Translation Accumulated Total
reserve losses
GBP GBP GBP GBP
As at 1 April 2019 1,000,000 (11,721) (589,509) 398,770
Initial application
of IFRS 16 - - (1,395) (1,395)
-------------- ---------------- ------------ ---------
As at 1 April 2019 (Restated) 1,000,000 (11,721) (590,904) 397,375
-------------- ---------------- ------------ ---------
Profit for the period - - (29,525) (29,525)
Translation of foreign
operation - 7,439 - 7,439
-------------- ------------ ------------ ---------
Total comprehensive
loss for the period - 7,439 (29,525) (22,086)
-------------- ------------ ------------ ---------
As at 30 September 2019 1,000,000 (4,282) (623,894) 371,824
============== ============ ============ =========
Period from 1 April 2019 to 31 March 2020 (audited)
Share capital Translation Accumulated Total
reserve losses
GBP GBP GBP GBP
As at 1 April 2019 1,000,000 (11,721) (589,509) 398,770
Initial application
of IFRS 16 - - (1,395) (1,395)
-------------- ------------ ------------ ---------
As at 1 April 2019 (Restated) 1,000,000 (11,721) (590,904) 397,375
-------------- ------------ ------------ ---------
Loss for the period - - (13,915) (13,915)
Translation of foreign
operation - 15,793 - 15,793
-------------- ------------ ------------ ---------
Total comprehensive
loss for the year - 15,793 (13,915) 1,878
As at 31 March 2020 1,000,000 4,072 (604,819) 399,253
============== ============ ============ =========
NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHSED TO 30 SEPTEMBER 2020
1. GENERAL INFORMATION
The Company was incorporated in England and Wales on 26 February
2016, as a public company limited by shares under the Act. The
principal legislation under which the Company operates is the Act.
The registered office of the Company is at the offices of London
Registrar, Suite A, 6 Honduras St, London EC1Y 0(TH) United
Kingdom.
Shares of the Company are traded on London Stock Exchange's main
market for listed securities since 2017.
2. ACCOUNTING POLICIES
Basis of preparation
The condensed financial information for the period ended 30
September 2020 and 30 September 2019 have been prepared in
accordance with IAS 34, Interim Financial Reporting. The condensed
financial information is unaudited and does not constitute
statutory financial statements. The comparative interim financial
information covers the period from 1 April 2019 to 30 September
2019.
The principal accounting policies used in preparing the interim
financial statements are the same as those applied in the Company's
financial statements as at and for the year ended 31 March 2020,
which have been prepared in accordance with International Financial
Reporting Standards as adopted by the European Union ("IFRS")
issued by the International Accounting Standards Board ("IASB"),
including related interpretations issued by the International
Financial Reporting Interpretations Committee ("IFRIC"). The
auditors' report on those accounts was unqualified and
unmodified.
The condensed financial information is presented in British
Pound Sterling ("GBP").
The interim financial statements for the six months ended 30
September 2020 was approved by the Directors on 16 December
2020.
Going concern
These interim financial statements have been prepared on a going
concern basis.
The Board's review of the accounts, budgets and financial plan
leads the directors to believe that the Company has sufficient
resources to continue operation for the foreseeable future. The
financial accounts are therefore prepared on a going concern
basis.
The COVID-19 pandemic led to movement controls in Malaysia from
March 2020 onwards which have the impact including (i) staff may be
unable to attend their normal place of work and fulfil their normal
duties due to falling ill or being required to self-isolate: (ii)
the efficiency of our operation may be reduced; (iii) the various
providers of 3rd party infrastructure used to supply our services
may be unable to cope with the increased demands placed upon
them.
These are mitigated by: (i) the Group has proven technology to
enable most employees to carry out their duties remotely; (ii) the
Group has a strong balance sheet with no gearing, and be able to
access equity financing (if required) to cover any temporary
pressure on working capital.
3. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of unaudited interim financial statements
requires management to make judgements, estimates and assumptions
that affect the application of accounting policies and the reported
amounts of assets and liabilities, income and expenses for the
current and its corresponding financial period under review. Actual
results may differ from these estimates.
In preparing the unaudited interim financial statements, the
significant judgements made by the management in applying the
Company's accounting policies and the sources of estimates
uncertainty were consistent as those applied to the 2020 Audited
Financial Statements.
There were no changes in estimates of amounts of the Company
that may have a material effect on financial period ended 30
September 2020.
4. REVENUE
Revenue represents the fair value of the consideration received
or receivables for communication services. Revenue is recognised
when it is probable that the economic benefits associated with a
transaction will flow to the Company and the amount of revenue and
associated costs can be measured reliably and over the period to
which the charges relate.
All revenue derived from South East Asia region. Revenue
excludes value added tax and other sales taxes.
5. LOSS PER SHARE
Basic loss per ordinary 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.
Diluted earnings per share is calculated by adjusting the weighted
average number of ordinary shares outstanding to assume conversion
of all dilutive potential ordinary shares. There are currently no
dilutive potential ordinary shares.
Loss per share attributed to ordinary shareholders
6 months 6 months
period ended period ended
30 September 30 September
2020 2019
Profit/(Loss) for the period (GBP) 7,046 (29,525)
Weighted average number of shares
(Unit) 10,000,000 10,000,000
Basic and diluted profit/(loss)
per share (GBP) 0.001 (0.003)
6. RIGHT-OF-USE
6 months 6 months Year ended
period ended period ended 30 March
30 September 30 September 2020
2020 2019
GBP GBP GBP
Unaudited Unaudited Audited
Cost
Balance at beginning of
period 188,707 188,707 188,707
Addition during the period 210,922 - -
Termination of lease (188,707) - -
-------------- -------------- -----------
Balance at end of period 210,922 188,707 188,707
-------------- -------------- -----------
Accumulated depreciation
Balance at beginning of
period (117,942) (23,588) (23,588)
Charges for the period (49,954) (47,177) (94,354)
Termination of lease 141,530 - -
-------------- -------------- -----------
Balance at end of period (26,366) (70,765) (117,942)
-------------- -------------- -----------
Net book value 184,665 117,942 70,765
-------------- -------------- -----------
The Group subsidiary leased an office which the subsidiary has
entered into a non-cancellable operating lease agreement. The lease
is for a period of 24 months operating lease agreement with an
option to renew the lease for a further 12 months.
7. BANK
Cash and Cash equivalents are denominated in the following
currencies:
As at As at
30 September 31 March
2020 2020
GBP GBP
Great Britain Pound 20,327 20,703
Singapore Dollar 19,508 19,514
United States Dollar 27,265 26,667
Malaysia Ringgit 276,595 283,808
-------------- ----------
343,695 350,692
-------------- ----------
8. TRADE AND OTHER RECEIVABLES
As at As at
30 September 31 March
2020 2020
GBP GBP
Trade receivables 250,801 210,224
Deposit 23,585 -
Other receivables 25,472 18,868
299,858 229,092
-------------- ----------
9. TRADE AND OTHER PAYABLES
As at As at
30 September 31 March
2020 2020
GBP GBP
Amount due to related companies - 89,674
Amount due to directors 6,066 4,166
Trade creditors 208,147 35,847
Accruals 9,222 33,800
Other payables 15,791 13,984
239,226 177,471
-------------- ----------
10. LEASE LIABILITIES
Lease liabilities are payable as follow:
As at As at
30 September 31 March
2020 2020
GBP GBP
Less than one year 103,601 73,825
More than one year 82,515 -
186,116 73,825
-------------- ----------
11. SHARE CAPITAL
Ordinary shares of LIR1 each
As at As at
30 September 31 March
2020 2020
GBP GBP
Paid up:
10,000,000 ordinary shares at LIR0.10
each 1,000,000 1,000,000
At 31 March 2020 and 30 September 2020, the total issued
ordinary share of the Company were 10,000,000.
12. SEASONAL OR CYCLICAL FACTORS
There are no seasonal factors that materially affect the Group's
operation.
13. RELATED PARTY TRANSACTIONS
In 2017 the company entered into an agreement with a third party
which provides consultancy service agreement in relation to the
listing exercise of the Company. Orient Management Services Limited
is partly owned by Sayed Mustafa Ali, directors of the Company.
As at As at
30 September 31 March
2020 2020
GBP GBP
Amount due to related parties
- Orient Managed Services Limited - 44,391
- Orient Telecoms Sdn Bhd - 45,283
Amount due to directors
- Sayed Mustafa Ali 1,666 1,666
- Ross Andrews 1,250 1,250
- Leon Santos 1,250 1,250
- Wong Chee Keong 1,900 -
The amount due to related party is interest-free and they are
payable on demand.
Sayed Mustafa Ali is a director of both, the Company and Orient
Telecoms Sdn Bhd
14. SUBSEQUENT EVENT
There were no subsequent events after the reporting period.
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END
IR TFBRTMTABMLM
(END) Dow Jones Newswires
December 16, 2020 03:02 ET (08:02 GMT)
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