12 January 2021
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, WITHIN, INTO OR IN THE UNITED STATES, AUSTRALIA, CANADA, THE REPUBLIC OF SOUTH AFRICA, THE REPUBLIC OF IRELAND OR JAPAN.
Fragrant Prosperity Holdings Limited
("FPP" or the "Company")
Unaudited Interim Results
Fragrant Prosperity Holdings Limited (the "Company"), incorporated in the British Virgin Islands ("BVI") announces its unaudited interim financial results for the six-month period ended 30 September 2020.
Director's Statement for the period 1 April 2020 - 30 September 2020
I have pleasure in presenting the condensed financial statements of Fragrant Prosperity Holdings Limited (the "Company" or "FPP") for the period from 1 April 2020 to 30 September 2020.
During the financial period, the Company reported a net loss of £180,598. As at 30 September 2020, the Company had cash in bank balance of £102,238.
The Board has actively reviewed a number of potential acquisition opportunities across the sector, none of which has met the necessary criteria for selection and continues to review a number of potential acquisition opportunities.
The Board looks forward to providing further updates to shareholders in due course.
Simon James Retter
Chairman
*Ends*
For more information:
| Fragrant Prosperity Holdings Limited | |
| Simon James Retter | +44 (0) 208 617 0071 |
| | |
| Optiva Securities Ltd (Financial Adviser) | |
| Jeremy King | +44 (0) 20 3137 1902
|
FRAGRANT PROSPERITY HOLDINGS LIMITED
DIRECTOR'S STATEMENT
FOR THE PERIOD FROM 1 APRIL 2020 TO 30 SEPTEMBER 2020
I have pleasure in presenting the condensed financial statements of Fragrant Prosperity Holdings Limited (the "Company" or "FPP") for the period from 1 April 2020 to 30 September 2020.
During the financial period, the Company reported a net loss of £180,598. As at 30 September 2020, the Company had cash in bank balance of £102,238.
The Board has actively reviewed a number of potential acquisition opportunities across the sector, none of which has met the necessary criteria for selection and continues to review a number of potential acquisition opportunities.
The Board looks forward to providing further updates to shareholders in due course.
Chairman
12 January 2021
FRAGRANT PROSPERITY HOLDINGS LIMITED
INTERIM MANAGEMENT REPORT
FOR THE PERIOD FROM 1 APRIL 2020 TO 30 SEPTEMBER 2020
Introduction
The Company was incorporated on 28 January 2016 in the British Virgin Islands, as an exempted company with limited liability under the Companies Law.
Its issued share capital, consisting of Ordinary Shares admitted to a Standard Listing on the Official List in accordance with Chapter 14 of the Listing Rules and to trading on the London Stock Exchange's main market for listed securities on 5 September 2016.
Company objective
The Company was formed to undertake an acquisition of a target company or business. The Company does not have any specific acquisition under consideration and does not expect to engage in substantive negotiations with any target company or business until after Admission. The Directors believe that their network, and the Company's cash resources and profile following Admission, mean that the Company will target an Acquisition where the target company has a value of up to £100 million. The Company expects that consideration for the Acquisition will primarily be satisfied by issue of new Shares to a vendor (or vendors), but that some cash may also be payable by the Company. Any funds not used in connection with the Acquisition will be used for future acquisitions, internal or external growth and expansion, and working capital in relation to the acquired company or business.
Following completion of the Acquisition, the objective of the Company will be to operate the acquired business and implement an operating strategy with a view to generating value for its Shareholders through operational improvements as well as potentially through additional complementary acquisitions following the Acquisition. Following the Acquisition, the Company intends to seek re-admission of the enlarged group to listing on the Official List and trading on the London Stock Exchange or admission to another stock exchange.
The Company's efforts in identifying a prospective target company or business will not be limited to a
particular industry or geographic region. However, given the experience of the Directors, the Company expects to focus on acquiring a company or business in the technology sector (in particular focussing on technology and/or intellectual property that is used in the financial services industry) with either all or a substantial portion of its operations in Europe or Asia. The Directors' initial search will focus on businesses based in or with operations in Hong Kong, Malaysia, or the United Kingdom.
Key events
At the period end the Company has cash of approximately £102 thousand and continues to keep administrative costs to a minimum so that the majority of funds can be dedicated to the review of and potentially investment in, suitable projects.
Directors
The Directors of the Company since the last financial period are:
Mahesh s/o Pulandaran
Simon James Retter
Craig Marshak
Richard Samuel
FRAGRANT PROSPERITY HOLDINGS LIMITED
INTERIM MANAGEMENT REPORT
FOR THE PERIOD FROM 1 APRIL 2020 TO 30 SEPTEMBER 2020 (continued)
Corporate governance
In order to implement its business strategy, the Company has adopted a corporate governance structure as follows:
· consistent with the rules applicable to companies with a Standard Listing, unless required by law or other regulatory process, Shareholder approval is not required in order for the Company to complete the Acquisition. The Company will, however, be required to obtain the approval of the Board before it may complete the Acquisition;
· the Board intends to comply, in all material respects, with certain Main Principles of the UK Corporate Governance Code (as set out in more detail in "Part II - The Company, its Board and the Acquisition Structure") and has adopted a share dealing code that complies with the requirements of the Market Abuse Regulations. All persons discharging management responsibilities (comprising only the Directors at the date of this Document) shall comply with the share dealing code from the date of Admission; and
· following the Acquisition, the Directors may seek to transfer the Company from a Standard Listing to either a Premium Listing or other appropriate listing venue, based on the track record of the company or business it acquires, subject to fulfilling the relevant eligibility criteria at the time. If the Company is successful in obtaining a Premium Listing, further rules will apply to the Company under the Listing Rules and Disclosure and Transparency Rules and the Company will be obliged to comply with or explain any derogation from the UK Corporate Governance Code. In addition to, or in lieu of, a Premium Listing, the Company may determine to seek a listing on another stock exchange or seek re-admission to a Standard Listing.
FRAGRANT PROSPERITY HOLDINGS LIMITED
INTERIM MANAGEMENT REPORT
FOR THE PERIOD FROM 1 APRIL 2020 TO 30 SEPTEMBER 2020 (continued)
Responsibility Statement
The Directors are responsible for preparing the Condensed 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).
The directors confirm that, to the best of their knowledge, this condensed consolidated half-yearly report has been prepared in accordance with IAS 34 as adopted by the European Union. The interim management report includes 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 period and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and
· material related-party transactions during the period and any material changes in the related-party transactions described in the last annual report.
By order of the Board
Simon James Retter
Director
12 January 2021
FRAGRANT PROSPERITY HOLDINGS LIMITED
CONDENSED STATEMENT OF COMPREHESIVE INCOME (UNAUDITED)
FOR THE PERIOD FROM 1 APRIL 2020 TO 30 SEPTEMBER 2020
| | | | | |
Period from 1 April 2020 to 30 September 2020 | | Period from 1 April 2019 to 30 September 2019 |
| | Notes | | | | £ | | £ |
| | | | | | | | |
| INCOME | | | | | - | | - |
| | | | | | | | |
| Administrative expenses | | | | | (130,598) | | (37,982) |
| Share Based Payment charge | | | | | (50,000) | - | - |
| OPERATING LOSS/LOSS BEFORE TAXATION | | | | | (180,598) | | (37,982) |
| Income tax expense | 3 | | | | - | | - |
| LOSS FOR THE PERIOD ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY | | | | | (180,598) | | (37,982) |
| | | | | | | | |
| OTHER COMPREHENSIVE INCOME | | | | | | | |
| Other comprehensive income | | | | | - | | - |
| | | | | | | | |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | | | | | (180,598) | | (37,982) |
FRAGRANT PROSPERITY HOLDINGS LIMITED
CONDENSED STATEMENT OF FINANCIAL POSITION (UNAUDITED)
AS AT 30 SEPTEMBER 2020
| | | | | As at 30 September 2020 (unaudited) | | As at 31 March (audited) |
| | Notes | | | £ | | £ |
| | | | | | | |
| CURRENT ASSETS | | | | | | |
| Cash and cash equivalents | | | | 102,238 | | 127,710 |
| Prepayments |
| | | - | | 17,375 |
| | | | | 102,238 | | 145,085 |
| CURRENT LIABILITIES | | | | | | |
| Trade Creditors | | | | (22,500) | | (27,250) |
| Accruals
|
| | | - | | (7,500) |
| Convertible loan note | | | | (310,000) | | (210,000) |
| | | | | (332,500) | | (244,750) |
| NET ASSETS | | | | (230,262) | | (99,665) |
| | | | | | | |
| EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY | | | | | | |
| Share capital | 5
| | | 989,913 | | 989,913 |
| Retained Earnings |
| | | (1,220,175) | | (1,089,578) |
| TOTAL EQUITY | | | | (230,262) | | (99,655) |
| | | | | | | |
FRAGRANT PROSPERITY HOLDINGS LIMITED
CONDENSED STATEMENT OF CASH FLOWS (UNAUDITED)
FOR THE PERIOD FROM 1 APRIL 2020 TO 30 SEPTEMBER 2020
| | | | |
Period from 1 April 2020 to 30 September 2020 | | Period from 1 April 2019 to 30 September 2019 |
| | Notes | | | £ | | £ |
| | | | | | | |
| Cash flow from operating activities | | | | | | |
| Loss before tax | | | | (180,598) | | (37,982) |
| Share Based Payment | | | | 50,000 | | - |
|
Changes in working capital
| | | |
5,125
| |
11,499
|
| | | | | 5,125 | | 11,499 |
| Net cash flow from operating activities | | | | (125,473) | | (26,483) |
| | | | | | | |
| Cash flow from financing activities | | | | | | |
| Issue of share capital | | | | - | | 59,790 |
| Issue of convertible loan note | | | | 100,000 | | - |
| Net cash flow from financing activities | | | | 100,000 | | 59,790 |
| | | | | | | |
| Net increase in cash and cash equivalents | | | | (25,473) | | 33,307 |
| Cash and cash equivalents at beginning of period | | | | 127,710 | | 5,574 |
| Cash and cash equivalents at end of period | | | | 102,238 | | 38,881 |
| | | | | | | |
FRAGRANT PROSPERITY HOLDINGS LTD
STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
Period from 1 April 2019 to 30 September 2019
| | Share capital | | Retained earnings | | Total |
| | £ | | £ | | £ |
| As at 1 April 2019 | 930,124 | | (947,800) | | (17,676) |
| Loss for the period | - | | (37,982) | | (37,982) |
| Total comprehensive loss for the period | - | | (37,982) | | (37,982) |
| Issue of ordinary shares | 64,789 | | - | | 64,789 |
| Share issue costs | (5,000) | | - | | (5,000) |
| As at 30 September 2019 | 989,913 | | (985,782) | | 4,131 |
Period from 1 April 2020 to 30 September 2020
| | Share capital | | Retained earnings | | Total |
| | £ | | £ | | £ |
| As at 1 April 2020 | 989,913 | | (1,089,578) | | (99,665) |
| Loss for the period | - | | (180,598) | | (180,598) |
| Share based payment charge | | | 50,000 | | 50,000 |
| Total comprehensive loss for the period | - | | (130,598) | | (130,598) |
| As at 30 September 2020 | 989,913 | | (1,220,175) | | (230,262) |
FRAGRANT PROSPERITY HOLDINGS LIMITED
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 APRIL 2020 TO 30 SEPTEMBER 2020
1. GENERAL INFORMATION
The Company was incorporated in the British Virgin Islands on 28 January 2016 as an exempted company with limited liability under the Companies Law.
The Company's Ordinary shares are currently admitted to a standard listing on the Official List and to trading on the London Stock Exchange.
The Company's nature of operations is to act as a special purpose acquisition company.
2. ACCOUNTING POLICIES
Basis of preparation
The interim condensed unaudited financial statements for the period ended 30 September 2020 have been prepared in accordance with IAS 34 Interim Financial Reporting. The results for the period ended 30 September 2020 are unaudited.
The condensed unaudited financial statements for the period ended 30 September 2020 has been prepared on a basis consistent with, and on the basis of, the accounting policies set out in the financial information on the Company set out in the Company's Prospectus for admission to the Standard Listing segment of the Official List and in the audited financial statements for the year ended 31 March 2020.
The financial information of the Company is presented in British Pound Sterling ("£").
Standards and interpretations issued but not yet applied
At the date of authorisation of this financial information, the directors have reviewed the Standards in issue by the International Accounting Standards Board ("IASB") and IFRIC, which are effective for annual accounting periods ending on or after the stated effective date. In their view, none of these standards would have a material impact on the financial reporting of the company.
Cash and cash equivalents
The Company considers any cash on short-term deposits and other short term investments to be cash equivalents.
Taxation
The tax currently payable is based on the taxable profit for the period. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other periods and it further excludes items that are never taxable or deductible. The Company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.
FRAGRANT PROSPERITY HOLDINGS LIMITED
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 APRIL 2020 TO 30 SEPTEMBER 2020 (continued)
Deferred income tax is provided for using the liability method on temporary timing differences at the balance sheet date between the tax basis of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred income tax liabilities are recognised in full for all temporary differences. Deferred income tax assets are recognised for all deductible temporary differences carried forward of unused tax credits and unused tax losses to the extent that it is probable that taxable profits will be available against which the deductible temporary differences, and carry-forward of unused tax credits and unused losses can be utilised.
The carrying amount of deferred income tax assets is assessed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred income tax asset to be utilised. Unrecognised deferred income tax assets are reassessed at each balance sheet date and are recognised to the extent that is probable that future taxable profits will allow the deferred income tax asset to be recovered.
Going concern
Until such time as the Company makes a significant investment it will meet its day to day working capital requirements from its existing cash reserves and by raising new equity finance.
In the six-month period ended 30 September 2020 the Company recorded a loss after tax of £180,598 (2019: £37,982 ) and a net cash outflow from operating activities of £125,473 (2019: £26,483). The Company raised an additional £100,000 of new funds from the issue of a new convertible loan note with an existing loan note holder.
The Company had cash of £102,238 at 30 September 2020. Although the level of cash outgoings prior to making an investment is expected to be modest, the cash flow forecasts indicate that the Company needs to raise additional funds in the coming months.
Although the directors believe that the Company will be successful in raising the funds required there can be no guarantee of success of that fundraising.
Based on their assessment, the Directors have a reasonable expectation that the Company has adequate resources, supplemented by the additional funds to be raised, to continue as a going concern for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing these financial statements.
The requirement to raise additional funds constitutes a material uncertainty that may cast significant doubt on the ability of the Company to continue as a going concern.
If the Company was unable to secure sufficient funding to enable it to continue on a going concern basis then adjustments would be necessary to write down assets to their recoverable amounts and provide for additional liabilities.
Operating segments
The directors are of the opinion that the business of the Company comprises a single activity, that of an investment company. Consequently, all activities relate to this segment.
FRAGRANT PROSPERITY HOLDINGS LIMITED
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 APRIL 2020 TO 30 SEPTEMBER 2020 (continued)
3. INCOME TAX EXPENSE
The Company is regarded as resident for the tax purposes in British Virgin Islands.
No tax is applicable to the Company for the period ended 30 September 2020. No deferred income tax asset has been recognised in respect of the losses carried forward, due to the uncertainty as to whether the Company will generate sufficient future profits in the foreseeable future to prudently justify this.
4. SHARE CAPITAL & RESERVES
| | Shares in issue | | Share capital | |
| | Number | | £ | |
| As at 1 April 2018 | 43,214,287 | | 930,124 | |
| Issue of ordinary shares | - | | | |
| As at 30 September 2018 | 43,214,287 | | 930,124 | |
| Issue of ordinary shares | - | | | |
| As at 31 March 2019 | 43,214,287 | | 930,124 | |
| Issue of Ordinary shares | 8,638,535 | | 59,789 | |
| As at 30 September 2019 | 51,852,822 | | 989,913 | |
| Issue of Ordinary shares | - | | - | |
| As at 30 September 2020 | 51,852,822 | | 989,913 | |
On 16 July 2019 the Company issued 8,638,535 new Ordinary Shares in the company at a price of 0.75pence per share raising gross cash proceeds of £64,789 and £59,789 net of expenses.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
