Source - LSE Regulatory
RNS Number : 3720T
Orient Telecoms PLC
14 November 2023
 

 

 

ORIENT TELECOMS PLC

 

("ORIENT" or the "Company")

 

HALF YEAR REPORT ENDED 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


 

Sayed Mustafa Ali

 

mustafa@orient-telecoms.com

 

 

 

 

 

 

 


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 £14,870, 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 period ended

 

6 months period ended

 



30-Sep-23

 

30-Sep-22

 

Notes


£

 

£

 



(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 MONTHS ENDED 30 SEPTEMBER 2023





As at

 

As at

 

As at

 



30-Sep-23

 

31-Mar-23

 

30-Sep-22

 



£

 

£

 

£

 

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 MONTHS ENDED 30 SEPTEMBER 2023

 

 



6 months period ended

 

6 months period ended

 


30-Sep-23

 

30-Sep-22

 


£

 

£

 


(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 MONTHS ENDED 30 SEPTEMBER 2023

 

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



Share capital

 

Translation reserve

 

Accumulated losses

 

Total

 


£

 

£

 

£

 

£

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 capital

 

Translation reserve

 

Accumulated losses

 

Total

 


£

 

£

 

£

 

£

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

 

 

10,258

 

(517,209)

 

493,049

 

 

 

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



Share capital

 

Translation reserve

 

Accumulated losses

 

Total

 


£

 

£

 

£

 

£

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 MONTHS ENDED 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 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 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 ("£").

 

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 ended

 

6 months period 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 period ended

 

Year ended

6 months period ended

 


30-Sep-23

31-Mar-2023

31-Sep-22

 





(Loss)/Profit for the period (£)


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 period ended

 

Year ended

 

6 months period ended

 

30-Sep-23

 

31-Mar-2023

 

30-Sep-2022

 

£

 

£

 

£







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

period ended

 

Year ended

 

 

6 months period ended

 

 


30-Sep-23

 

31-Mar-23

 

30-Sep-2022

 


£

 

£

 

£

 







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

period ended

 

Year

 

6 months

period ended

 

 


30-Sep-23

 

31-Mar-23

 

30-Sep-22

 

 


£

£

 

£

 

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

 

ended

 

period ended

 

30-Sep-23

 

31-Mar-23

 

30-Sep-22

 

£

 

£

 

 

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

 

ended

period ended

 


30-Sep-23

 

31-Mar-23

30-Sep-22

 


£

 

£

 

£

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


£



ordinary shares



Paid up:





10,000,000 ordinary shares at ₤0.10 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

 


£

 

£

Amount due to directors





- Sayed Mustafa Ali


1,251


1,250

- Wong Chee Keong

 


1,817

 


1,935

    - Michael Goh Seng Kim


9,000


-



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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