NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2025 (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 Eastcastle House, 27/28 Eastcastle Street, London W1W 8DH 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 2025 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 interim financial information covers the six-month period from 1 April 2025 to 30 September 2025, with comparative figures for the corresponding period from 1 April 2024 to 30 September 2024.

 

 

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 2025, 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 ("£").

 

All amounts in these interim financial statements are rounded to the nearest pound (£), unless otherwise stated. Minor differences in totals may arise from rounding adjustments.

 

 

Going concern

 

These interim financial statements have been prepared on a going concern basis.

At 30 September 2025, the Group had cash of £106,331 and current liabilities of £167,071, together with trade and other receivables of £235,467. The reduction in cash from £565,149 at 31 March 2025 reflects the settlement of payables and timing of collections.

The Directors have prepared financial forecasts and, based on expected receivable collections and ongoing business development, believe the Group has sufficient resources to meet its liabilities as they fall due for at least the next 12 months from the date of approval of these interim financial statements.

The Group continues to rely on an outsourcing model to manage service maintenance, which reduces fixed overheads and supports liquidity flexibility. In addition, management is in active discussions with potential clients to secure new service contracts in the coming periods.

Accordingly, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence and, for this reason, these interim financial statements have been prepared on a going concern basis.

 

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 2025 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 2025.

 

 

4.   REVENUE FROM CONTRACTS WITH CUSTOMERS

 

Revenue represents the fair value of consideration for communication services provided to customers, recognised in accordance with IFRS 15. Revenue is recognised over time as services are delivered, or at a point in time for one-off services.

 

 

Disaggregation of revenue

	6 months ended 30 Sep 2025 £		6 months ended 30 Sep 2024  £
Managed telecom	58,243		88,137
Group managed services	30,000		30,000
Total	88,243		118,137

 

 

Revenue was derived from customers in Malaysia, Singapore and Thailand.

 

At 30 September 2025 the Group had trade receivables of £41,217 (31 March 2025: £14,496) and contract liabilities of £31,193 (31 March 2025: £9,209), which are expected to be recognised as revenue within 12 months.

 

 

 

5.   INCOME TAX EXPENSE

 

No income tax expense or tax credit has been recognised for the six-month period ended 30 September 2025 (30 September 2024: £nil), as the Group recorded a loss for the period.

 

 

 

 

 

6.   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-25	31-Mar-2025	30-Sep-24
(Loss)/Profit for the period (£)		(109,348)	(240,217)	(68,310)
Weighted average number of shares (Unit)		10,000,000	10,000,000	10,000,000
Basic and diluted profit per share (pence)		(1.09)	(2.40)	(0.69)

 

 

 

 

7.   COMPUTER EQUIPMENT

 

 

	6 months period ended 30-Sep-25 £		Year ended 31-Mar-25   £		6 months period ended 30-Sep-24   £
Cost
Balance at beginning of period	2,528		2,634		-
Addition during the period	-		-		2,634
Exchange difference	28		(106)		-
At the end of period	2,556		2,528		2,634
Accumulated depreciation
Balance at beginning of period	298		48		-
Charges for the period	259		250		47
Exchange difference	-		-		-
Balance at end of period	557		298		47
Net book value	1,999		2,230		2,587

 

 

 

 

 

 

 

 

 

8.   RIGHT-OF-USE

 

	6 months		Year		6 months
	period ended		ended		period ended
	30-Sep-25		31-Mar-25		30-Sep-24
	£		£		£
Cost
Balance at beginning of period	56,896		59,286		54,685
Reduction due to early termination during the period	-		-		-
Addition due to new lease term	-		-		-
Exchange difference	634		(2,390)		4,601
At the end of period	57,530		56,896		59,286
Accumulated depreciation
Balance at beginning of period	23,707		14,821		4,557
Charges for the period	9,528		9,235		9,881
Reversal of accumulated depreciation due to early termination	-				-
Exchange difference	324		(350)		384
Balance at the end of period	33,559		23,706		14,822
Net book value	23,971		33,190		44,464

 

 

The Group's subsidiary has a three (3)-year office lease commencing on 1 January 2024 and expiring on 31 December 2026.

 

 

9.   BANK

 

Cash and Cash equivalents are denominated in the following currencies:

 

		6 months period ended		Year ended		6 months period ended
		30-Sep-25		31-Mar-25		30-Sep-2024
		£		£		£
Great Britain Pound		1		11,659		11,659
Singapore Dollar		-		19,726		19,903
United States Dollar		-		54,752		101,362
Malaysia Ringgit		106,330		479,011		144,502
		106,331		565,149		277,426

 

 

 

 

10. TRADE AND OTHER RECEIVABLES

 

 

 

		6 months		Year		6 months
		period ended		ended		period ended
		30-Sep-25		31-Mar-25		30-Sep-24
		£		£		£
Trade receivables		41,217		14,496		160,891
Prepayment and Deposit		21,981		6,978		21,453
Other receivables		210,439		151,372		162,137
		273,637		172,846		344,481

 

 

 

 

10A.   PROVISION FOR DOUBTFUL DEBTS AND WRITE-OFF

 

During the financial year ended 31 March 2025, the Group recognised a provision for doubtful debts amounting to £133,548 relating to specific receivables assessed as potentially uncollectible. Upon further review and confirmation during the interim period ended 30 September 2025, sufficient evidence indicated that the amount is no longer recoverable. Accordingly, the previously recognised provision has been utilised, and the corresponding receivable has been written off.

This adjustment has no impact on the profit or loss for the current interim period, as the provision was fully recognised in the prior financial year. The write-off, however, will be appropriately reflected in the Group's tax return for the relevant assessment period.

 

 

11. TRADE AND OTHER PAYABLES

 

 

 

		6 months		Year		6 months
		period ended		ended		period ended
		30-Sep-25		31-Mar-25		30-Sep-24
		£		£		£
Amount due to directors		3,750		2,500		3,750
Trade creditors		3,530		3,491		-
Accruals		33,457		36,896		29,240
Contract liability		31,193		9,209		11,614
Other payables		75,088		382,438		84,028
		147,018		434,534		128,632

 

 

 

 

 

 

12. LEASE LIABILITIES

 

Lease liabilities are payable as follow:

 

		6 months		Year		6 months
		period ended		ended		period ended
		30-Sep-25		31-Mar-25		30-Sep-24
		£		£		£
Less than one year		20,053		19,154		9,473
More than one year		5,234		15,265		35,865
		25,287		34,419		45,338

 

 

 

13. SEGMENTAL ANALYSIS

 

As of 30 September 2025, the Group operated as a single operating segment, specializing in the provision of managed telecommunication services. While the Group's headquarters and corporate activities are based in the United Kingdom, the majority of its revenue originated from Malaysia totalling £58,243, accounting for 66% of total revenue. The remaining revenue was primarily generated from other countries within the South East Asia region.

 

 

14. RISK ARISING FROM FINANCIAL ASSETS AND LIABILITIES AND FAIR VALUE DISCLOSURES

 

Categories of financial assets and liabilities

 

The following table categorises the carrying value of the financial assets and liabilities at the balance sheet date. In each case the fair value is not materially different to the carrying value.

 

			As at
			30-Sep-25 Carrying value
			£
Financial assets
Cash and cash equivalent			106,331			Not materially different
Trade and other receivables			108,169			Not materially different
Total financial assets			214,499
		As at
		30-Sep-25 Carrying value
		£
Financial liabilities
Amount due to directors		3,750			Not materially different
Trade and other payable		142,522			Not materially different
Total financial liabilities		146,272

The contractual maturities of financial assets are all within 12 months of the balance sheet date

 

 

Risk arising from financial assets and liabilities

 

The following paragraphs summarize the principal risks associated with the company's financial assets and liabilities and how those risks are managed.

 

Liquidity and capital risk management

The Group's capital structure consists of shareholders' equity. The objectives when managing capital are to safeguard the Group's ability to continue as a going concern, provide returns to shareholders and benefits to other stakeholders, and maintain an optimal capital structure to reduce the cost of capital. This is done primarily through equity financing. There were no changes to the Group's approach to capital management during the period.

 

As at 30 September 2025, the Group held cash of £106,331 against current liabilities of £167,071, mainly contract liabilities and accruals. Liquidity is monitored on a rolling 12-month basis. Management expects receivable collections and new contracts to cover obligations.

 

 

Counterparty risk

Cash balances are primarily held with Maybank Berhad, a leading Malaysian financial institution. Management considers the credit risk of its bank counterparties to be low.

 

 

Maturity analysis of financial liabilities

 

	Less than 1 year £	1-2 years £	2-5 years £	Total £
Trade and other payables	142,522	-	-	142,522
Amount due to directors	3,750	-	-	3,750
Lease liabilities	20,053	5,234	-	25,287
Total	166,325	5,234	-	171,559

Interest rate risk

 

The Company does not currently have financial instruments that expose the Company to significant interest rate risk as the Company does not have any debt that bears variable interest rate.

 

 

Currency risk

 

The Group operates in two currencies: Pound Sterling ("GBP"), which is the functional currency of the parent company, and Ringgit Malaysia ("MYR"), which is the functional currency of the subsidiary. Currency risk arises primarily from the translation of the subsidiary's MYR-denominated financial statements into GBP for consolidation and reporting purposes.

 

As at 30 September 2025, the Group's exposure to MYR-denominated net financial assets amounted to £114,740 (2024: £115,584). A 5% fluctuation in the MYR/GBP exchange rate would have resulted in an estimated impact of approximately £5,737 (2024: £5,779) on the Group's profit and net assets, assuming all other variables remain constant. The Group monitors its foreign currency exposures on a regular basis and adopts appropriate risk management strategies when necessary to mitigate potential exchange rate volatility

 

The following Group's financial instruments are denominated in MYR:

		As at			As at
		30-Sep-25			30-Sep-24
		£			£
Financial assets
Cash and cash equivalent		106,331			144,502
Trade and other receivable		45,630			46,231
Total financial assets		151,961			190,733
Financial liabilities
Trade and other payables		37,221			75,149
Total financial liabilities		37,221			75,149
Net financial assets		114,740			115,584

 

Price risk

 

The Company does not hold any equity securities and therefore is not exposed to price risk.

Credit risk

 

Concentration exists with a small number of counterparties. At 30 September 2025, the largest single receivable was £135,000 from Imperial Telecom Sole Co Ltd (~57% of total receivables). Management applies the IFRS 9 simplified approach, recognising lifetime expected credit losses. An allowance of £9,762 was booked.

 

Receivable Ageing Profile (gross):

Ageing category	30-Sep-25	30-Sep-24
Current (<30 days)	£26,500	£105,400
31-60 days	£5,400	£14,200
61-90 days	£2,300	£19,500
>90 days	£7,017	£21,791
Total trade receivables	£41,217	£160,891

 

Receivables overdue by more than 90 days are considered recoverable and are subject to continuous monitoring.

 

 

15. SHARE CAPITAL

 

		Number of		£
		ordinary share
Paid up:
10,000,000 ordinary shares at ₤0.10 each		10,000,000		1,000,000

 

 

At 30 September 2025, the total issued ordinary share of the Company were 10,000,000.

 

 

 

16. CHANGES IN ACCOUNTING POLICIES

 

There have been no changes in the accounting policies applied during the interim period, which remain consistent with those applied in the most recent annual financial statements.

 

 

 

17. SEASONAL OR CYCLICAL FACTORS

                                                                                 

There are no seasonal factors that materially affect the Group's operation.

 

 

 

 

18. RELATED PARTY TRANSACTIONS

 

There were no related party transactions except for the payments of directors' transactions disclosed in the interim financial statements.

 

		6 months		6 months
		period ended		period ended
		30-Sep-25		30-Sept-24
		£		£
Amount due to directors
- Sayed Mustafa Ali		3,750		3,750
		3,750		3,750

 

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

 

 

19. SIGNIFICANT EVENTS AND TRANSACTION

 

There were no significant events or transactions during the interim period that require disclosure.

 

 

20. CONTINGENT LIABILITIES AND CONTINGENT ASSETS

 

The company has no material contingent liabilities or contingent assets as at 30 September 2025.

 

 

21. CONTROL

 

The directors consider there is no ultimate controlling party.

 

 

22. SUBSEQUENT EVENT

 

No subsequent events have occurred that require disclosure.

 

 

23. CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

 

This interim report contains forward-looking statements. Actual results may differ materially due to risks and uncertainties. No obligation to update forward-looking statements except as required by law.

 

 

 

 

 

COMPANY STATEMENT OF FINANCIAL POSITION

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2025

 

 

The following summarised information relates to Orient Telecoms Plc, prepared under FRS 101 (Reduced Disclosure Framework) in the United Kingdom. Data are extracted from management accounts for the six months ended 30 September 2025 and audited statements for 31 March 2025.

		As at		As at
		31-Sept-25		31-Mar-25
	Notes	£		£
ASSETS
NON-CURRENT ASSETS
Investment in subsidiary		859,831		779,796
CURRENT ASSETS
Bank		-		86,137
Trade and other receivables		30,468		15,736
		30,468		101,873
TOTAL ASSETS		890,299		881,669
EQUITY AND LIABILITIES
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY
Share capital		1,000,000		1,000,000
Accumulated loss		(190,243)		(171,109)
TOTAL EQUITY		809,757		828,891
CURRENT LIABILITIES
Amount due to director                                                           3,750				2,500
Trade and other payables		76,792		50,278
		80,542		52,778
TOTAL EQUITY AND LIABILITIES		890,299		881,669

The Profit for the Company for the six months ended 30 Sept 2025 is £19,134 (2024: £7,837.)

 

This report was approved and authorised for issue by the Board of Directors on 12 December 2025 and signed on behalf by:

 

Sayed Mustafa Ali

Director