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Orient Telecoms PLC released its interim financial statements for the six months ended 30 September 2021 on 22 December 2021. For this period, the Group reported a net profit of £44,804, equating to 0.45 pence profit per share. Additionally, one non-executive director was not re-elected during the 2021 Annual General Meeting.
| Date | 22 Dec 2021 |
| Time | 09:03:53 |
| Category | Results |
| ID | 4905W |
ORIENT TELECOMS PLC
INTERIM FINANCIAL STATEMENTS
For the six months ended 30 September 2020
Director's Statement
I have pleasure in presenting the interim financial statements of Orient Telecoms Plc and its subsidiary (the "Group") for the six months ended 30 September 2021.
During the financial period, the Group reported a net profit of £44,804 (0.045 pence profit per share).
The Group operates as a fully managed overlay network service provider in the South East Asia Region, which makes it very light weight and thus not requiring heavy investment towards building the network infrastructure. In the past six (6) months, especially in Malaysia, the Group has seen an increasing approach towards rolling out 5G network as quickly as possible. With this new development the Board believes there will be fairly large opportunities to expand its own product called "OfficeMate" throughout Malaysia.
There has been an increasing demand for bigger bandwidth and managed connectivity solutions in the region, hence the Group is very much focused on increasing its sales and reach in various countries through its strong partnership with the infrastructure owners.
The Group has been continuously working to enhance its own Product and Managed Services offerings. The Technology team is focused on creating a customised operating system which will help us manage the services for customers in a much more efficient and productive way. This project is expected to be completed by the fourth (4) quarter of 2022.
Despite the challenges brought on by the Covid pandemic, the Group have shown positive results due to its aggressive sales and marketing activities. And with mass immunisation programs initiated by the Governments which have contributed to the declining number of covid cases worldwide, we expect the coming years to be less challenging and more fruitful.
The Group have engaged new partners and network owners to negotiate better rates, which the Board believes will have a positive effect on the Group's pricing and gross margin levels. The market remains competitive and requires continuous effort to engage customers effectively and to introduce new services or features into its offerings
The Group's entire operational team remains dedicated and committed towards this goal which we plan to achieve through hard work and unwavering commitment in the face of the forthcoming challenges.
Withthe emergence of new variants of the covid, the effect of which we are unable to quantify at the present moment, but we believe that, with our perseverance and unrelenting commitment we will be able to overcome those challenges
During the AGM 2021, one of the non-executive directors was not re-elected. The Board considers that the current composition of the board, which comprise a CEO, a non-executive Chairman and a not-executive director, is adequate given the size of the Company.
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 as adopted by United Kingdom (IAS 34).
The Directors confirm that, to the best of their knowledge, the interim financial statements have been prepared in accordance with IAS 34. 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
22nd December 2021
CONDENSED CONSOLIDATED STATEMENT OF COMPREHESIVE INCOME
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021
|
|
|
6 months period ended 30 September 2021 |
|
6 months period ended 30 September 2020 |
|
|
Notes |
£ |
|
£ |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
INCOME |
4 |
404,614 |
|
317,512 |
|
DIRECT COST |
|
(122,205) |
|
(143,238) |
|
GROSS PROFIT |
|
282,409 |
|
174,274 |
|
Administrative expenses |
|
(236,586) |
|
(173,223) |
|
OPERATING PROFIT |
|
45,823 |
|
1,051 |
|
Other income |
|
2,368 |
|
- |
|
Finance income |
|
292 |
|
7,316 |
|
Finance expense |
|
(3,679) |
|
- |
|
OPERATING PROFIT BEFORE TAXATION |
|
44,804 |
|
8,367 |
|
Income tax expense |
|
- |
|
(1,321) |
|
PROFIT FOR THE PERIOD ATTRIBUTABLE TO EQUITY HOLDERS |
|
44,804 |
|
7,046 |
|
OTHER COMPREHENSIVE INCOME |
|
|
|
|
|
Items that will or may be reclassified to profit or loss: |
|
|
|
|
|
Translation of foreign operation |
|
(17,653) |
|
(3,532) |
|
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
|
27,151 |
|
3,514 |
|
|
|
|
|
|
|
Basic and diluted profit per share (pence) |
5 |
0.45 |
|
0.07 |
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2021
|
|
|
|
As at 30 September 2021 |
|
As at 31 March 2021 |
|
|
Notes |
|
£ |
|
£ |
|
|
|
|
(Unaudited) |
|
(Audited)) |
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT ASSETS |
|
|
|
|
|
|
Right-of-use assets |
6 |
|
171,116 |
|
219,356 |
|
|
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
Bank |
7 |
|
458,844 |
|
391,783 |
|
Trade and other receivables |
8 |
|
193,084 |
|
306,455 |
|
|
|
|
651,928 |
|
698,238 |
|
CURRENT LIABILITIES |
|
|
|
|
|
|
Trade and other payables |
9 |
|
165,303 |
|
238,828 |
|
Lease liabilities |
10 |
|
175,550 |
|
223,726 |
|
|
|
|
340,853 |
|
462,554 |
|
|
|
|
|
|
|
|
NET ASSETS |
|
|
482,191 |
|
455,040 |
|
|
|
|
|
|
|
|
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY |
|
|
|
|
|
|
Share capital |
11 |
|
1,000,000 |
|
1,000,000 |
|
Translation reserve |
|
|
(41,366) |
|
(23,713) |
|
Accumulated losses |
|
|
(476,443) |
|
(521,247) |
|
TOTAL EQUITY |
|
|
482,191 |
|
455,040 |
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021
|
|
|
6 months period ended 30 Sept 2021 |
|
6 month period ended 30 Sept 2020 |
|
|
|
£ |
|
£ |
|
|
|
|
|
|
|
Cash flow from operating activities |
|
|
|
|
|
Profit before tax |
|
44,804 |
|
8,367 |
|
Adjustment for: |
|
|
|
|
|
Unrealised exchange loss |
|
395 |
|
1,512 |
|
Depreciation of right-of-use-assets |
|
49,594 |
|
49,954 |
|
Finance income |
|
(292) |
|
(10,998) |
|
Tax expense |
|
- |
|
(1,321) |
|
Interest on lease liabilities |
|
3,679 |
|
4,631 |
|
Gain on lease termination |
|
- |
|
(2,461) |
|
|
|
98,180 |
|
49,684 |
|
Changes in working capital |
|
|
|
|
|
Increase/ (Decrease) in trade and other receivables |
113,371 |
|
(70,766) |
|
|
Increase/(Decrease) in trade and other payables |
(91,179) |
|
61,755 |
|
|
Cash flow from operations |
|
22,192 |
|
(9,011) |
|
Interest received |
|
292 |
|
10,998 |
|
Net cash flow generated from operating activities |
|
120,664 |
|
51,671 |
|
|
|
|
|
|
|
Cash flow from financing activities |
|
|
|
|
|
Interest paid |
|
(3,679) |
|
(2,170) |
|
Repayment on lease liability |
|
(48,176) |
|
(57,121) |
|
Net cash flow used in financing activities |
|
(51,855) |
|
(59,291) |
|
|
|
|
|
|
|
Net movement in cash and cash equivalents |
|
68,809 |
|
(7,620) |
|
Cash and cash equivalents at beginning of period |
|
391,783 |
|
350,692 |
|
Exchange gain on cash and cash equivalents |
|
(1,748) |
|
623 |
|
Cash and cash equivalents at end of period |
|
458,844 |
|
343,695 |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
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 period |
- |
|
- |
|
44,804 |
|
44,804 |
|
Translation of foreign operation |
- |
|
(17,653) |
|
- |
|
(17,653) |
|
Total comprehensive profit / (loss) for the period |
- |
|
(17,653) |
|
44,804 |
|
27,151 |
|
|
|
|
|
|
|
|
|
|
As at 30 September 2021 |
1,000,000 |
|
(41,366) |
|
(476,443) |
|
482,191 |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (continued)
Period from 1 April 2020 to 31 March 2021 (audited)
|
|
Share capital |
|
Translation reserve |
|
Accumulated losses |
|
Total |
|
|
£ |
|
£ |
|
£ |
|
£ |
|
As at 1 April 2020 |
1,000,000 |
|
4,072 |
|
(604,819) |
|
399,253 |
|
Profit for the year |
- |
|
- |
|
83,572 |
|
83,572 |
|
Translation of foreign operation |
- |
|
(27,785) |
|
- |
|
(27,785) |
|
Total comprehensive income for the year |
- |
|
(27,785) |
|
83,572 |
|
55,787 |
|
|
|
|
|
|
|
|
|
|
As at 31 March 2021 |
1,000,000 |
|
(23,713) |
|
(521,247) |
|
455,040 |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021
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.
2. ACCOUNTING POLICIES
Basis of preparation
The condensed financial information for the period ended 30 September 2021 and 30 September 2020 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 2020 to 30 September 2020.
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 the International Accounting Standards in conformity with the requirements of the Companies Act 2006 and International Financial Reporting Standards as adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union ("IFRS"). The auditors' report on those accounts was unqualified and unmodified.
The condensed financial information is presented in British Pound Sterling ("£").
The interim financial statements for the six months ended 30 September 2021 was approved by the Directors on 22 December 2021.
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 herd immunity and with the easing of restriction businesses are moving towards normalisation. Hence, 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 the next 24 months.. 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 2021 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 2021.
4. REVENUE
|
|
6 months period ended 30 September 2021 |
|
Year ended 31 March 2021 |
|
|
£ |
|
£ |
|
|
Unaudited |
|
Audited |
|
Revenue |
404,614 |
|
807,133 |
|
|
404,614 |
|
807,133 |
|
|
|
|
|
Revenue is recognised either when the performance obligation in the contract have been performed (so "point in time" recognition) or "overtime" as control of the performance obligation is transferred to the customer. Revenue represents rendered managed telecommunication services to the customers, the end users, which is recognised over the period of time when the services is performed.
Invoicing and payment terms are generally monthly in advance except for a single customer who has been granted extended timeframe for settlement. A contract liability represents the obligation of the Group to render services to a customer for which consideration has been received (or the amount is due) from the customer
In addition, under contract with customer, the customer is also entitled to claim rebates if the service performed / downtime is more that the allowed hours in any given month. The Group has implemented an open source fully customised Network Performance Monitoring system, which can provide an in-depth view of performance by customer. Due to the high level of service provided under each contract with a customer, the Group has no history of having to provide rebates. On that basis, the variable consideration was considered as remote.
Revenue is derived substantially 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 profit 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 30 September 2021 |
6 months period ended 30 September 2020 |
|
Profit for the period (£) |
44,804 |
7,046 |
|
Weighted average number of shares (Unit) |
10,000,000 |
10,000,000 |
|
Basic and diluted profit per share (pence) |
0.45 |
0.07 |
6. RIGHT-OF-USE
|
|
6 months period ended 30 September 2021 |
|
Year ended 30 March 2021 |
|
|
£ |
|
£ |
|
|
Unaudited |
|
Audited |
|
Cost |
|
|
|
|
Balance at beginning of period |
292,474 |
|
165,119 |
|
Addition during the period |
- |
|
292,474 |
|
Derecognition due to lease termination |
- |
|
(44,098) |
|
Exchange difference |
1,807 |
|
(10,775) |
|
At end of period |
294,281 |
|
402,720 |
|
Accumulated depreciation |
|
|
|
|
Balance at beginning of period |
73,119 |
|
94,354 |
|
Charges for the period |
49,594 |
|
99,010 |
|
Exchange difference |
452 |
|
(10,000) |
|
|
|
|
|
|
Balance at end of period |
123,165 |
|
183,364 |
|
|
|
|
|
|
Net book value |
171,116 |
|
219,356 |
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 24 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:
|
|
As at 30 September 2021 |
|
As at 31 March 2021 |
|
|
£ |
|
£ |
|
Great Britain Pound |
20,102 |
|
20,102 |
|
Singapore Dollar |
18,230 |
|
18,494 |
|
United States Dollar |
25,232 |
|
25,370 |
|
Malaysia Ringgit |
395,280 |
|
327,817 |
|
|
458,844 |
|
391,783 |
8. TRADE AND OTHER RECEIVABLES
|
|
As at 30 September 2021 |
|
As at 31 March 2021 |
|
|
£ |
|
£ |
|
Trade receivables |
117,636 |
|
217,037 |
|
Deposit |
22,182 |
|
64,374 |
|
Other receivables |
53,266 |
|
25,044 |
|
|
193,084 |
|
306,455 |
9. TRADE AND OTHER PAYABLES
|
|
As at 30 September 2021 |
|
As at 31 March 2021 |
|
|
£ |
|
£ |
|
Amount due to related companies |
- |
|
- |
|
Amount due to directors |
2,990 |
|
3,004 |
|
Trade creditors |
57,333 |
|
134,551 |
|
Accruals |
34,523 |
|
40,703 |
|
Contract liability |
25,049 |
|
10,418 |
|
Other payables |
45,408 |
|
50,152 |
|
|
165,303 |
|
238,828 |
|
|
|
|
|
10. LEASE LIABILITIES
Lease liabilities are payable as follow:
|
|
As at 30 September 2021 |
|
As at 31 March 2021 |
|
|
£ |
|
£ |
|
Less than one year |
47,130 |
|
96,094 |
|
More than one year |
128,420 |
|
127,632 |
|
|
175,550 |
|
223,726 |
11. SHARE CAPITAL
Ordinary shares of ₤1 each
|
|
As at 30 September 2021 £ |
As at 31 March 2021 £ |
|
Paid up: |
|
|
|
10,000,000 ordinary shares at ₤0.10 each |
1,000,000 |
1,000,000 |
At 31 March 2021 and 30 September 2021, 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
|
|
As at 30 September 2021 |
As at 31 March 2021 |
|
|
£ |
£ |
|
Amount due to directors |
|
|
|
- Sayed Mustafa Ali |
1,250 |
1,250 |
|
- Wong Chee Keong |
1,740 |
1,754 |
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.