TIDMORNT
RNS Number : 1493H
Orient Telecoms PLC
22 November 2022
ORIENT TELECOMS PLC
INTERIM CONDENSED FINANCIAL STATEMENTS
For the six months period ended
30 September 2022
CHAIRMAN'S STATEMENTS
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 2022.
During the financial period, the Group reported a net loss of
GBP30,681 (0.31 pence loss per share).
The Group operates as a fully managed overlay network service
provider in the South East Asia Region, which significantly reduces
the need for heavy investment towards building its own network
infrastructure compared to other traditional telecommunication
companies. In the past six (6) months, the company has seen a lot
of excitement about the present and future roll out the 5G infra
structure and services throughout the region by almost all cellular
telecommunication operators. Accordingly, the Board believes that
there may be business opportunities for the Company to expand its
managed services products in line with the greater adoption of 5G
network infrastructure.
There has been an increasing demand for larger bandwidth by
these cellular operators for bandwidth hungry applications. This
opens up opportunities for the Company to offer fully managed
solutions which can ensure any cellular operators or businesses are
focused on their respective core businesses while the Group (as a
managed service provider) can take care of their respective
connectivity and IT needs. The Group is focused on promoting and
enhancing its managed services portfolio in the South East Asia
region.
The Group has been continuously working to enhance its product
and managed services offerings while its technology team focused on
creating a customised operating system which will help manage the
services for customers in a more efficient and productive
manner.
The Group has also started exploring Artificial Intelligence
(AI) driven applications as additional service offering to its
current managed services. The Group has also initiated discussions
with some potential partners for its intended AI development
projects.
During the reporting period the Group remained focus on its
marketing drive including on digital marketing initiatives, as well
as increasing the number of sales personnel to reach out to as many
customers as possible.
Operations teams remains committed in delivering services based
on customer's requirements while maintaining support to its
customers to ensure the quality of service offered meets customer's
expectations.
Based on its current and forecasted performance the Group
foresees a meaningful financial year ending in March 2023.
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 the United
Kingdom.
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 United Kingdom. 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
CONDENSED CONSOLIDATED STATEMENT OF COMPREHESIVE INCOME
FOR THE SIX MONTHSED 30 SEPTEMBER 2022
6 months 6 months
period ended period ended
30-Sep-22 30-Sep-21
Notes GBP GBP
(Unaudited) (Unaudited)
INCOME 4 188,039 404,614
DIRECT COST (25,081) (122,205)
-------------- --------------
GROSS PROFIT 162,958 282,409
Administrative expenses (186,481) (236,586)
-------------- --------------
OPERATING (LOSS)/PROFIT (23,523) 45,823
Other income 1,637 2,368
Finance income 708 292
Finance cost (9,503) (3,679)
-------------- --------------
OPERATING (LOSS)/PROFIT BEFORE TAXATION (30,681) 44,804
Income tax expense - -
-------------- --------------
(LOSS)/PROFIT FOR THE PERIOD ATTRIBUTABLE
TO EQUITY HOLDERS (30,681) 44,804
OTHER COMPREHENSIVE INCOME
Items that will or may be reclassified
to profit or loss:
Translation of foreign operation - (17,653)
TOTAL COMPREHENSIVE (LOSS)/INCOME
FOR THE PERIOD (30,681) 27,151
-------------- --------------
Basic and diluted profit per share
(pence) 5 (0.31) 0.45
-------------- --------------
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2022
As at As at As at
30-Sep-22 31-Mar-22 30-Sep-21
GBP GBP GBP
Notes (Unaudited) (Audited) (Unaudited)
ASSETS
NON-CURRENT ASSETS
Right-of-use assets 6 262,464 294,776 171,116
CURRENT ASSETS
Bank 7 425,066 466,623 458,844
Trade and other receivables 8 146,030 125,935 193,084
----------
571,096 592,558 651,928
------------ ---------- ------------
CURRENT LIABILITIES
Trade and other payables 9 75,141 95,823 165,303
Lease liability 10 100,657 93,552 47,130
------------ ---------- ------------
175,798 189,375 212,433
------------ ---------- ------------
NET ASSETS 657,762 697,959 610,611
------------ ---------- ------------
EQUITY ATTRIBUTABLE TO EQUITY
HOLDERS OF THE COMPANY
Share capital 11 1,000,000 1,000,000 1,000,000
Translation reserve 10,258 (16,737) (41,366)
Accumulated losses (517,209) (486,528) (476,443)
----------
493,049 496,735 482,191
----------
NON- CURRENT LIABILITIES
Lease liabilities 10 164,713 201,224 128,420
------------ ---------- ------------
164,713 201,224 128,420
------------ ---------- ------------
TOTAL EQUITY AND NON -CURRENT
LIABILITIES 657,762 697,959 610,611
------------ ---------- ------------
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 30 SEPTEMBER 2022
6 months 6 months
period ended period ended
30-Sep-22 30-Sep-21
GBP GBP
(Unaudited) (Unaudited)
Cash flow from operating activities
(Loss)/Profit before tax (30,681) 44,804
Adjustment for:
Unrealised exchange loss 26,993 395
Depreciation of right-of-use-assets 52,493 49,594
Finance income (708) (292)
Interest on lease liabilities 8,393 3,679
--------------
56,490 98,180
Changes in working capital
(Increase)/Decrease in trade and other
receivables (20,095) 113,371
Increase/(Decrease) in trade and other
payables (20,682) (91,179)
-------------- --------------
Cash flow from operations 15,713 22,192
Interest received 708 292
-------------- --------------
Net cash flow generated from operating
activities 16,421 120,664
-------------- --------------
Net cash flow generated from/(used
in) operating activities
Interest paid (8,393) (3,679)
Repayment on lease liability (49,585) (48,176)
-------------- --------------
Net cash flow used in financing activities (57,978) (51,855)
Net movement in cash and cash equivalents (41,557) 68,809
Cash and cash equivalents at beginning
of period 466,623 391,783
Exchange gain on cash and cash equivalents - (1,748)
-------------- --------------
Cash and cash equivalents at end of
period 425,066 458,844
============== ==============
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 30 SEPTEMBER 2022
Period from 1 April 2022 to 30 September 2022 (Unaudited)
Share Translation Accumulated Total
capital reserve losses
GBP GBP GBP GBP
As at 1 April 2022 1,000,000 (16,737) (486,528) 496,735
Loss for the period - - (30,681) (30,681)
Translation of foreign
operation - 26,995 - 26,995
---------- ------------ ------------ ---------
Total comprehensive
income for the period - 26,995 (30,681) (3,686)
---------- ------------ ------------ ---------
As at 30 September
2022 1,000,000 10,258 (517,209) 493,049
========== ============ ============ =========
Period from 1 April 2021 to 30 September 2021 (Unaudited)
Share Translation Accumulated Total
capital reserve losses
GBP GBP GBP GBP
As at 1 April 2021 1,000,000 (23,713) (521,247) 455,040
---------- ------------ ------------ ---------
Profit for the year - - 44,804 44,804
Translation of foreign
operation - (17,653) - (17,653)
---------- ------------ ------------ ---------
Total comprehensive
income for the year - (17,653) 44,804 27,151
As at 30 September
2021 1,000,000 (41,366) (476,442) 482,191
========== ============ ============ =========
Period from 1 April 2021 to 31 March 2022 (Audited)
Share Translation Accumulated Total
capital reserve losses
GBP GBP GBP GBP
As at 1 April 2021 1,000,000 (23,713) (521,247) 455,040
---------- ------------ ------------ --------
Profit for the year - - 34,719 34,719
Translation of foreign
operation - 6,976 - 6,976
---------- ------------ ------------ --------
Total comprehensive
income for the year - 6,976 34,719 41,695
As at 31 March 2022 1,000,000 (16,737) (486,528) 496,735
========== ============ ============ ========
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT
FOR THE SIX MONTHSED 30 SEPTEMBER 2022
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 0TH 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 consolidated financial information for the period ended 30
September 2022 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 2022 to 30 September 2022.
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 2021,
which have been prepared in accordance with International Financial
Reporting Standards as adopted by the United Kingdom ("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").
Going concern
These interim financial statements have been prepared on a going
concern basis.
The COVID-19 pandemic lock downs in Malaysia which was
implemented in March 2020 have since been removed as the country
have reached its targeted immunization and with the easing of
restriction businesses are moving towards normalisation. Hence, the
Board sees significant opening up more opportunities for
businesses.
The Company is already in an active discussion with some of the
potential clients to secure new business in the forthcoming
year.
The Company has enough cash balances to run its operations for
next 24 months even if there is no new business or Pandemic
situation gets worsen. The Company also relies heavily on
outsourcing companies to perform its international service
maintenance which helps the company to manage its cashflows better
and also keep the lowest possible headcount on the payroll.
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 2022 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 2022.
4. REVENUE
Revenue represents the fair value of the consideration received
or receivable 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.
6 months period 6 months period
ended ended
30-Sep-22 30-Sep-21
Revenue 188,039 404,614
---------------- ----------------
188,039 404,614
---------------- ----------------
Revenue is derived solely from Malaysia, Singapore and Thailand.
Revenue excludes value added tax and other sales taxes.
5. PROFIT PER SHARE
Basic profit 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.
Profit per share attributed to ordinary shareholders:
6 months Year ended 6 months
period period ended
ended
30-Sep-22 31-Mar-22 30-Sep-21
(Loss)/Profit for the period
(GBP) (30,681) 34,719 44,804
Weighted average number of
shares (Unit) 10,000,000 10,000,000 10,000,000
Basic and diluted profit
per share (pence) (0.31) 0.35 0.45
6. RIGHT-OF-USE ASSETS
6 months Year ended 6 months
period ended period ended
30-Sep-22 31-Mar-22 30-Sep-21
GBP GBP GBP
Cost
Balance at beginning
of period 467,262 292,474 292,474
Addition during the - 167,304 -
period
Exchange difference 31,988 7,484 1,807
-------------- ----------- --------------
At end of period 499,250 467,262 294,281
-------------- ----------- --------------
Accumulated depreciation
Balance at beginning
of period 172,486 73,118 73,119
Charges for the period 52,493 97,496 49,594
Exchange difference - 1,872 452
-------------- ----------- --------------
Balance at end of period 236,786 172,486 123,165
-------------- ----------- --------------
Net book value 262,464 294,776 171,116
-------------- ----------- --------------
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 60 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:
6 months Year ended 6 months
period ended period ended
30-Sep-22 31-Mar-22 30-Sep-21
GBP GBP GBP
Great Britain Pound 25,163 15,302 20,102
Singapore Dollar 21,391 19,249 18,230
United States Dollar 31,334 26,592 25,232
Malaysia Ringgit 347,178 405,480 395,280
-------------- ----------- --------------
425,066 466,623 458,844
-------------- ----------- --------------
8. TRADE AND OTHER RECEIVABLES
6 months Year 6 months
period ended ended period ended
30-Sep-22 31-Mar-22 30-Sep-21
GBP GBP GBP
Trade receivables 73,263 21,478 117,636
Prepayment and
Deposit 55,702 47,231 22,182
Other receivables 17,065 57,226 53,266
----------
146,030 125,935 193,084
------------- ---------- -------------
9. TRADE AND OTHER PAYABLES
6 months Year 6 months
period ended ended period ended
30-Sep-22 31-Mar-22 30-Sep-21
GBP GBP GBP
Amount due to directors 3,185 3,051 2,990
Trade creditors 3,865 - 57,333
Accruals 21,339 33,487 34,523
Contract liability - 8,136 25,049
Other payables 46,752 51,149 45,408
---------- -------------
75,141 95,823 165,303
------------- ---------- -------------
10. LEASE LIABILITIES
Lease liabilities are payable as follow:
6 months Year 6 months
period ended ended period ended
30-Sep-22 31-Mar-22 30-Sep-21
GBP GBP GBP
Less than one year 100,657 93,552 47,130
More than one year 164,713 201,224 128,420
265,370 294,776 175,550
------------- ---------- -------------
11. SHARE CAPITAL
Number of GBP
ordinary
shares
Paid up:
10,000,000 ordinary shares
at LIR0.10 each 10,000,000 1,000,000
----------- ----------
At 30 September 2022, 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
6 months 6 months
period ended period ended
30-Sep-22 30-Sep-21
GBP GBP
Amount due to directors
- Sayed Mustafa Ali 1,250 1,250
- Wong Chee Keong 1,935 1,740
3,185 2,990
------------- -------------
The amount due to related party is interest-free and they are
payable on demand.
14. SUBSEQUENT EVENT
There were no subsequent events immediately after the reporting
period.
*Ends*
For more information:
Orient Telecoms plc
Sayed Mustafa Ali mustafa@orient-telecoms.com
About Orient Telecoms PLC
ORIENT is an information technology company that offers managed
telecommunication services as its core business, which include
managed services in machine to machine networking, solutions for
internet of things (IOT), cyber security, big data solutions as
well as full spectrum of other managed services.
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END
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