Source - LSE Regulatory
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 £30,681 (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 MONTHS ENDED 30 SEPTEMBER 2022 




6 months period ended

 

6 months period ended

 



30-Sep-22

 

30-Sep-21

 

Notes


£

 

£

 



(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

 



£

 

£

 

£

 

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 MONTHS ENDED 30 SEPTEMBER 2022




6 months period ended

 

6 months period ended

 


30-Sep-22

 

30-Sep-21

 


£

 

£

 


(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 MONTHS ENDED 30 SEPTEMBER 2022


Period from 1 April 2022 to 30 September 2022 (Unaudited)



Share capital

 

Translation reserve

 

Accumulated losses

 

Total

 


£

 

£

 

£

 

£

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 capital

 

Translation reserve

 

Accumulated losses

 

Total

 


£

 

£

 

£

 

£

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 capital

 

Translation reserve

 

Accumulated losses

 

Total

 


£

 

£

 

£

 

£

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 MONTHS ENDED 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 ("£").

 

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 ended

 

6 months period 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 period ended

 

Year ended

 

6 months period ended

 


30-Sep-22

 

31-Mar-22

 

30-Sep-21

 







(Loss)/Profit for the period (£)


(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 period ended

 

Year ended

 

6 months period ended

 

30-Sep-22

 

31-Mar-22

 

30-Sep-21

 

£

 

£

 

£







Cost

 





Balance at beginning of period

467,262


292,474


292,474

Addition during the period

-


167,304


-

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

period ended

 

Year ended

 

6 months

period ended

 


30-Sep-22

 

31-Mar-22

 

30-Sep-21

 


£

 

£

 

£

 







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

 


£

 

£

£

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

 

£

 

£

 

£

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

 

 

 

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

 

£

 

£

 

£

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


£



ordinary shares



Paid up:





10,000,000 ordinary shares at ₤0.10 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

 


£

 

£

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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