TIDMORNT

RNS Number : 3720T

Orient Telecoms PLC

14 November 2023

ORIENT TELECOMS PLC

("ORIENT" or the "Company")

HALF YEAR REPORTED 30 SEPTEMBER 2023

ORIENT is an information technology company that offers managed 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, announces its half year report ended 30 September 2023

The interim report and accounts is available on the Company's website at: www.orient-telecoms.com

For more information please contact:

 
Orient Telecoms plc 
                     mustafa@orient-telecoms.com 
  Sayed Mustafa Ali 
 

Director's Statement

I am pleased to present the interim financial statements for Orient Telecoms Plc and its subsidiary undertaking, collectively referred to as "the Group," covering the six-month period ending on September 30, 2023.

Within this financial reporting period, the Group has recorded a net profit of GBP14,870, resulting in an earnings per share of 0.14 pence.

Introduction

Orient Telecoms Plc has continued to operate as a sophisticated fully managed overlay network service provider in the South East Asia Region during the past six months. This operational paradigm has conferred distinct advantages, reducing the imperative for substantial capital investments in proprietary network infrastructure, setting us apart from conventional telecommunications companies. Notably, the region has been characterized by an atmosphere of heightened anticipation and enthusiasm concerning the comprehensive deployment and expansion of 5G infrastructure and services by various cellular telecommunication operators.

Opportunities in 5G Infrastructure

The widespread rollout of 5G networks in our region has created exciting business opportunities for Orient Telecoms. Our Board is actively working on strategies to expand our range of managed services in line with the growing use of 5G technology. The increasing need for faster internet, driven by data-hungry apps, makes us a valuable provider of complete solutions. This lets telecom companies and businesses focus on what they do best while we handle their internet and tech needs.

Enhancing Services and Technology

Orient Telecoms has continued to exhibit an unwavering commitment to bolstering our product suite and managed service offerings. Our accomplished technology team is dedicated to the conception and implementation of a bespoke operating system engineered to optimize service management and operational efficacy for our esteemed clientele.

Exploration of Artificial Intelligence (AI)

In consonance with evolving market dynamics, Orient Telecoms has embarked on a definitive expedition into the realm of AI-driven applications, poised to augment our extant service offerings. Preliminary negotiations with prospective collaborators for AI-centric projects are already underway, underscoring our relentless pursuit of innovation.

Marketing and Sales Initiatives

Throughout this reporting period, our organizational focus has remained steadfast on refining our marketing endeavours, characterized by an accentuated emphasis on digital marketing initiatives. Furthermore, we have augmentatively expanded our sales personnel roster, in a concerted effort to broaden our outreach and fortify our market presence.

Operational Excellence

Our main goal is to provide services that match what our customers need. We are strongly committed to making sure our customer support is top-notch, so the quality of our service always meets and often exceeds what our customers expect.

Outlook

Based on how well we've been doing and our strong predictions, Orient Telecoms expects to have a successful financial year ending in March 2024.

Responsibility Statement

The Board of Directors at Orient Telecoms Plc takes full responsibility for carefully preparing the interim financial statements. We follow the rules set by the United Kingdom's Financial Conduct Authority (DTR) and International Accounting Standard 34 on Interim Financial Reporting (IAS 34), which is accepted by the European Union.

We hereby affirm that, to the best of our knowledge and expertise, the interim financial statements have been meticulously and diligently crafted in strict compliance with IAS 34, as enshrined by the European Union. These financial statements encompass a thorough, objective assessment of requisite information, as prescribed by DTR 4.2.7 and DTR 4.2.8, specifically including an elucidation of pivotal events that have transpired during the initial half of the fiscal year and their consequential ramifications on the interim financial statements.

Furthermore, the document provides a comprehensive overview of the principal risks and uncertainties foreseen in the latter half of the financial period. It also undertakes an in-depth analysis of significant related-party transactions in the initial six months, accompanied by any noteworthy modifications relative to the related-party transactions delineated in the antecedent annual report.

Sayed Mustafa Ali

Director

 
                                                        6 months        6 months 
                                                       period ended    period ended 
                                                        30-Sep-23       30-Sep-22 
                                              Notes        GBP             GBP 
                                                       (Unaudited)     (Unaudited) 
 
 INCOME                                         4        212,120         188,039 
 DIRECT COST                                            (20,940)        (25,081) 
                                                     --------------  -------------- 
 GROSS PROFIT                                            191,180         162,958 
 Administrative expenses                                (173,255)       (186,481) 
                                                     --------------  -------------- 
 OPERATING (LOSS)/PROFIT                                 17,925         (23,523) 
 Other income                                             1,713           1,637 
 Finance income                                           1,351            708 
 Finance cost                                            (6,119)         (9,503) 
                                                     --------------  -------------- 
 OPERATING (LOSS)/PROFIT BEFORE TAXATION                 14,870         (30,681) 
 Income tax expense                                         -               - 
                                                     --------------  -------------- 
 
 (LOSS)/PROFIT FOR THE PERIOD ATTRIBUTABLE 
  TO EQUITY HOLDERS                                      14,870         (30,681) 
 OTHER COMPREHENSIVE INCOME 
 Items that will or may be reclassified 
  to profit or loss: 
 Translation of foreign operation                           -               - 
 TOTAL COMPREHENSIVE (LOSS)/INCOME 
  FOR THE PERIOD                                         14,870         (30,681) 
                                                     --------------  -------------- 
 
 Basic and diluted profit per share 
  (pence)                                       5         0.14           (0.31) 
                                                     --------------  -------------- 
 

CONDENSED CONSOLIDATED STATEMENT OF COMPREHESIVE INCOME

FOR THE SIX MONTHSED 30 SEPTEMBER 2023

 
                                           As at        As at        As at 
                                         30-Sep-23    31-Mar-23    30-Sep-22 
                                            GBP          GBP          GBP 
                                Notes   (Unaudited)   (Audited)   (Unaudited) 
 
 ASSETS 
 
 NON-CURRENT ASSETS 
 Right-of-use assets              6       142,193      198,762      262,464 
 
 CURRENT ASSETS 
 Bank                             7       263,148      329,792      425,066 
 Trade and other receivables      8       360,411      275,612      146,030 
                                                     ---------- 
                                          623,559      605,404      571,096 
                                       ------------  ----------  ------------ 
 
 CURRENT LIABILITIES 
 Trade and other payables         9       68,377       59,118       75,141 
 Lease liability                 10       47,865       98,650       100,657 
                                       ------------  ----------  ------------ 
                                          116,242      157,768      175,798 
                                       ------------  ----------  ------------ 
 
 NET ASSETS                               649,510      646,398      657,762 
                                       ------------  ----------  ------------ 
 
 EQUITY ATTRIBUTABLE 
  TO EQUITY HOLDERS OF 
  THE COMPANY 
 Share capital                   11      1,000,000    1,000,000    1,000,000 
 Translation reserve                     (20,011)     (13,132)      10,258 
 Accumulated losses                      (431,339)    (446,209)    (517,209) 
                                                     ---------- 
                                          548,650      540,659      493,049 
                                                     ---------- 
 
 
 NON- CURRENT LIABILITIES 
 Lease liabilities               10       100,860      105,739      164,713 
                                       ------------  ----------  ------------ 
                                          100,860      105,739      164,713 
                                       ------------  ----------  ------------ 
 
 TOTAL EQUITY AND NON 
  -CURRENT LIABILITIES                    649,510       646,398     657,762 
                                       ------------  ----------  ------------ 
 

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2023

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHSED 30 SEPTEMBER 2023

 
                                                  6 months        6 months 
                                                 period ended    period ended 
                                                  30-Sep-23       30-Sep-22 
                                                     GBP             GBP 
                                                 (Unaudited)     (Unaudited) 
 Cash flow from operating activities 
 (Loss)/Profit before tax                          14,870         (30,681) 
 Adjustment for: 
 Translation of foreign operation                  (6,880) 
 Unrealised exchange loss                                          26,993 
 Depreciation of right-of-use-assets               56,569          52,493 
 Finance income                                    (1,351)          (708) 
 Interest on lease liabilities                      6,119           8,393 
                                               -------------- 
                                                   69,327          56,490 
 Changes in working capital 
 (Increase)/Decrease in trade and other 
  receivables                                     (84,799)        (20,095) 
 Increase/(Decrease) in trade and other 
  payables                                          9,259         (20,682) 
                                               --------------  -------------- 
 Cash flow from operations                         (6,213)         15,713 
 Interest received                                  1,351            708 
                                               --------------  -------------- 
 Net cash flow generated from operating 
  activities                                       (4,862)         16,421 
                                               --------------  -------------- 
 
 Net cash flow generated from/(used 
  in) operating activities 
 Interest paid                                     (6,119)         (8,393) 
 Repayment on lease liability                     (55,663)        (49,585) 
                                               --------------  -------------- 
 Net cash flow used in financing activities       (61,782)        (57,978) 
 
 Net movement in cash and cash equivalents        (66,644)        (41,557) 
 Cash and cash equivalents at beginning 
  of period                                        329,792         466,623 
 Exchange gain on cash and cash equivalents           -               - 
                                               --------------  -------------- 
 Cash and cash equivalents at end of 
  period                                           263,148         425,066 
                                               ==============  ============== 
 

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHSED 30 SEPTEMBER 2023

Period from 1 April 2023 to 30 September 2023 (Unaudited)

 
                              Share     Translation   Accumulated    Total 
                             capital      reserve        losses 
                               GBP          GBP           GBP         GBP 
 As at 1 April 2023         1,000,000    (13,132)      (446,209)    540,659 
 Profit for the period          -            -          14,870      14,870 
 Translation of foreign 
  operation                     -         (6,879)          -        (6,879) 
                           ----------  ------------  ------------  -------- 
 Total comprehensive 
  income for the period         -         (6,879)       14,870       7,991 
                           ----------  ------------  ------------  -------- 
 
 As at 30 September 
  2023                      1,000,000    (20,011)      (431,339)    548,650 
                           ==========  ============  ============  ======== 
 

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 year              -            -         (30,681)     (30,681) 
 Translation of foreign 
  operation                     -         26,995           -         26,995 
                           ----------  ------------  ------------  --------- 
 Total comprehensive 
  income for the year           -         26,995       (30,681)     (3,686) 
 
 As at 30 September 
  2022                      1,000,000     10,258       (517,209)    493,049 
                           ==========  ============  ============  ========= 
 

Period from 1 April 2022 to 31 March 2023 (Audited)

 
                              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 
                           ----------  ------------  ------------  -------- 
 Profit for the year            -            -          40,319      40,319 
 Translation of foreign 
  operation                     -          3,605           -         3,605 
                           ----------  ------------  ------------  -------- 
 Total comprehensive 
  income for the year           -          3,605        40,319      43,924 
 
 As at 31 March 2023        1,000,000    (13,132)      (446,209)    540,659 
                           ==========  ============  ============  ======== 
 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT

FOR THE SIX MONTHSED 30 SEPTEMBER 2023 (continued)

   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 consolidated financial information for the period ended 30 September 2023 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 2023 to 30 September 2023.

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 2023, which have been prepared in accordance with International Financial Reporting Standards as adopted by the UK ("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. The Company relies on outsourcing companies to perform its international service maintenance which helps the company to manage its cost 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 2023 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 2023.

   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-23         30-Sep-22 
 
 Revenue         212,120           188,039 
            ----------------  ---------------- 
                 212,120           188,039 
            ----------------  ---------------- 
 

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                       6 months 
                                   period ended     Year ended    period ended 
                                    30-Sep-23     31-Mar-2023      31-Sep-22 
 
 (Loss)/Profit for the period 
  (GBP)                              14,870          40,319        (30,681) 
 Weighted average number of 
  shares (Unit)                    10,000,000      10,000,000     10,000,000 
 Basic and diluted profit 
  per share (pence)                   0.14            0.40          (0.31) 
 
   6.   RIGHT-OF-USE 
 
                               6 months      Year ended      6 months 
                              period ended                  period ended 
                               30-Sep-23     31-Mar-2023    30-Sep-2022 
                                  GBP            GBP            GBP 
 
 Cost 
 Balance at beginning 
  of period                     472,598        472,598        467,262 
 Addition during the               -              -              - 
  period 
 Exchange difference               -              -            31,988 
                            --------------  ------------  -------------- 
 At end of period               472,598        472,598        499,250 
                            --------------  ------------  -------------- 
 
 Accumulated depreciation 
 Balance at beginning 
  of period                     273,836        177,822        172,486 
 Charges for the period         56,569         96,014         52,493 
 Exchange difference               -              -              - 
                            --------------  ------------  -------------- 
 Balance at end of period       330,405        273,836        236,786 
                            --------------  ------------  -------------- 
 
 Net book value                 142,193        198,762        262,464 
                            --------------  ------------  -------------- 
 

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 
                           period ended                    6 months 
                                                         period ended 
                            30-Sep-23     31-Mar-23     30-Sep-2022 
                               GBP           GBP            GBP 
 
 Great Britain Pound         38,423         14,520         25,163 
 Singapore Dollar            20,579         20,858         21,391 
 United States Dollar        48,374         35,410         31,334 
 Malaysia Ringgit            155,772       259,005        347,178 
                         --------------  -----------  --------------- 
                             263,148       329,792        425,066 
                         --------------  -----------  --------------- 
 
   8.   TRADE AND OTHER RECEIVABLES 
 
                              6 months        Year      6 months 
                             period ended                 period 
                                                          ended 
                              30-Sep-23     31-Mar-23   30-Sep-22 
                                 GBP           GBP         GBP 
 Trade receivables             189,580       142,599     73,263 
 Prepayment and Deposit        37,092        32,981      55,702 
 Other receivables             133,739       100,032     17,065 
                                                       ---------- 
                               360,411       275,612     146,030 
                           --------------  ----------  ---------- 
 
   9.   TRADE AND OTHER PAYABLES 
 
                              6 months       Year      6 months 
                            period ended                period 
                                             ended       ended 
                             30-Sep-23     31-Mar-23   30-Sep-22 
                                GBP           GBP 
 Amount due to directors       12,068        4,830       3,185 
 Trade creditors                 -             -         3,865 
 Accruals                      24,433       34,108      21,339 
 Contract liability              -           4,125         - 
 Other payables                31,876       16,055      46,752 
                               68,377       59,118      75,141 
                           -------------  ----------  ---------- 
 

10. LEASE LIABILITIES

Lease liabilities are payable as follow:

 
                        6 months      Year      6 months 
                         period       ended      period 
                          ended                   ended 
                        30-Sep-23   31-Mar-23   30-Sep-22 
                           GBP         GBP         GBP 
 Less than one year      47,865      98,650      100,657 
 More than one year      100,860     105,739     164,713 
                                   ---------- 
                         148,725     204,389     265,370 
                       ----------  ----------  ---------- 
 

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 2023, 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-23      30-Sept-22 
                                 GBP            GBP 
 Amount due to directors 
   - Sayed Mustafa Ali          1,251          1,250 
   - Wong Chee Keong            1,817          1,935 
    - Michael Goh Seng          9,000            - 
     Kim 
                                12,068         3,185 
                            -------------  ------------- 
 

The amount due to related party is interest-free and they are payable on demand.

14. SUBSEQUENT EVENT

On 18 October 2023, The Board of Director approved to appoint Kirubarharan Ponnia as a Non-Executive Director. Following his appointment, Kirubarharan will become a member of the Audit Committee and the Nomination Committee.

Subsequently, The Company announced the resignation of Michael Goh Seng Kim as a Non-executive director of the company with effective from 19 October 2023.

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END

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