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IBPO.GB iEnergizer Ld

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iEnergizer Limited Interim Results (9133O)

11/11/2016 7:00am

UK Regulatory


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TIDMIBPO

RNS Number : 9133O

iEnergizer Limited

11 November 2016

Interim Statement September 2016

www.ienergizer.com

11 November 2016

iEnergizer Limited

("iEnergizer" , the "Company" or the "Group"))

INTERIM RESULTS FOR THE SIX MONTHSED 30 SEPTEMBER 2016

iEnergizer, the digital publishing and technology leader, which benefits from the dual disruptive waves of big data and the cloud is pleased to announce its Interim Results for the six months ended 30 September 2016. The present structure of the Group combines a well-established, high growth, business processes solution enterprise with a leading provider of end-to-end digital transformation solutions to the media and publishing industries.

Financial Highlights

   --    Revenues of $71.5m (H1 2016: $68.9m) 
   --    Adjusted EBITDA(1) $16.4m (H1 2016(2) : $16.6m) 
   --    Adjusted EBITDA(1) margin at 23% (H1 2016(2) : 24%) 
   --    Operating profit $13.8m (H1 2016: $13.7m) 
   --    Operating profit margin at 19.3% (H1 2016: 19.9%) 
   --    Profit before tax of $10.2m (H1 2016: $9.3m). 
   --    Profit before tax margin at 14.2% (H1 2016: 13.4%) 
   --    Cash and cash equivalents of $11.9m (31 March 2016: $10.2m) 
   --    Term Debt of $81.5m (31 March 2016: $87.6m).(3) 

(1) Non-recurring expenses relate to one off cost of US$0.2mn for professional charges.

(2) Non-recurring expenses relate to one off cost of US$0.3mn for professional charges.

(3) The Company is compliant of all applicable financial covenants including on-time payments of loan installments and interest.

Operational Highlights

   --    Focus on sustained profitable growth 

o Achieved 5% Revenue growth from services ($70.6m in H1 2017 vs $67.3 in H1 2016)

o Maintained Operating profit of $13.8m ($13.7m H1 2016)

-- Real Time Processing ("RTP"): Continued strong revenue growth of more than 20% due to increase in revenue from Travel, Telecom & E-commerce verticals as compared to the previous year and a new business line acquired in Media & Entertainment vertical.

-- Back Office Services ("BOS"): Continued focus on recurring revenue streams and long term customer relationships resulted in strong revenue growth of 18%

   --    Content Division: Sustainable long term growth prospects for content services: 

o Major wins this year with our existing and new customers, which will facilitate growth in the coming months, for educational publishing and professional publishing divisions

o New contract signed with our largest Financial Publishing customer which is an opportunity for growth in

existing services along with the     recommencement of some services provided in the past 

o Decline of aggregate revenue in project-driven content services ($36m H1 2017, $38m H1 2016) is attributable to conclusion of one-time projects in digital solutions and enterprises divisions. However, the division continues to enjoy steady work streams from its core customers

   --    Focused cost saving initiatives: 

o Savings in "Other expenses" by more than 17% ($4.8m in H1 2017 vs $5.8m in H1 2016) through rationalization of overheads e.g. travel, communication and professional expenses

o Running a leaner organization using technology effectively and optimizing utilization of the Company's resources

o Leveraging the Company's US based sales team for generating sales pipeline and cross-selling opportunities to all the business verticals of the Group

Continued focus on recurring revenue streams from business critical processes and long-term customer relationships.

Marc Vassanelli, Chairman of iEnergizer, commented:

"Reflecting the continued focus on recurring revenue streams from business critical processes and long term customer relationships, with both existing and new customers, we see real progress with the performance in the first half of this financial year, demonstrated by the growth in revenue, operating profits and profits before taxes.

"The Company's healthy cash position, together with its cash generative business model, puts us in a strong position to invest in both organic and inorganic growth opportunities in the periods ahead.

"We expect current market trends to continue through the second half of the year with a continuing focus on underlying operating margins. We believe there is significant opportunity for us to continue to expand the business further using this approach."

-Ends-

 
 
 Enquiries: 
iEnergizer Ltd.                     +44 (0)1481 242233 
Chris de Putron 
Mark De La Rue 
 
  FTI Consulting - Communications       +44 (0)20 3727 
  adviser                                         1000 
 
Edward Westropp, Jonathon Brill, 
 Eleanor 
 Purdon 
Arden Partners-Nominated adviser 
 and                                    +44 (0)20 7614 
 broker                                           5900 
Steve Douglas, Patrick Caulfield 
 
 

iEnergizer Limited and its subsidiaries

Unaudited Condensed Consolidated Interim Financial Statements

Prepared in accordance with International Financial Reporting Standards (IFRS)

Six months ended 30 September 2016 and 2015

Contents

 
 Unaudited Condensed Consolidated Statements of Financial 
  Position                                                             2 
 Unaudited Condensed Consolidated Income Statements                    4 
 Unaudited Condensed Consolidated Statements of Other Comprehensive 
  Income                                                               5 
 Unaudited Condensed Consolidated Statements of Changes 
  in Equity                                                            6 
 Unaudited Condensed Consolidated Statements of Cash Flows             8 
 Notes to Unaudited Condensed Consolidated Financial Statements        10 
 

Unaudited Condensed Consolidated Statements of Financial Position

(All amounts in United States Dollars, unless otherwise stated)

 
   Notes            As at             As at 
             30 September     31 March 2016 
                     2016 
                Unaudited           Audited 
  ------    -------------    -------------- 
 
 
 ASSETS 
 Non-current 
 Goodwill                             5                102,261,757                 102,262,760 
 Other intangible assets              6                 18,939,712                  20,339,230 
 Property, plant and equipment        7                  5,372,235                   5,849,658 
 Long- term financial asset                                632,110                     561,136 
 Non-current tax assets                                  2,074,428                   1,744,277 
 Deferred tax asset                                     12,929,952                  12,867,349 
 Non-current assets                                    142,210,194                 143,624,410 
                                         -------------------------  -------------------------- 
 
 Current 
 Trade and other receivables                            25,401,292                  27,613,023 
 Cash and cash equivalents                              11,867,808                  10,166,328 
 Short- term financial assets         8                  4,689,954                   4,425,033 
 Other current assets                                    3,540,249                   2,696,197 
 Current assets                                         45,499,303                  44,900,581 
                                         -------------------------  -------------------------- 
 
 Total assets                                          187,709,497                 188,524,991 
                                         =========================  ========================== 
 
 EQUITY AND LIABILITIES 
 Equity 
 Share capital                        9                  3,776,175                   3,776,175 
 Share compensation reserve                                 63,986                      63,986 
 Additional paid in capital           9                 15,451,809                  15,451,809 
 Merger reserve                                        (1,049,386)                 (1,049,386) 
 Retained earnings                                      73,540,330                  64,802,160 
 Other components of equity                           (10,373,525)                 (9,921,661) 
 Total equity attributable to equity 
  holders of the parent                                 81,409,389                  73,123,083 
                                         -------------------------  -------------------------- 
 
 
   Notes            As at             As at 
             30 September 
                     2016     31 March 2016 
                Unaudited           Audited 
  ------    -------------    -------------- 
 
 
 Liabilities 
 Non-current 
 Long term borrowings                               67,558,758                 73,741,220 
 Employee benefit obligations                        4,514,444                  4,464,676 
 Other non-current liabilities                         427,831                    465,472 
 Deferred tax liability                              4,254,620                  4,139,178 
 Non-current liabilities                            76,755,653                 82,810,546 
                                   ---------------------------  ------------------------- 
 
 Current 
 Short term borrowings                                       -                    642,751 
 Trade and other payables                            7,303,692                  9,398,856 
 Employee benefit obligations                          843,705                    840,944 
 Current tax liabilities                               629,628                    187,190 
 Current portion of long term 
  borrowings                                        13,927,710                 13,846,942 
 Other current liabilities                           6,839,720                  7,674,679 
 Current liabilities                                29,544,455                 32,591,362 
                                   ---------------------------  ------------------------- 
 
 Total equity and liabilities                      187,709,497                188,524,991 
                                   ===========================  ========================= 
 

(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)

Unaudited Condensed Consolidated Income Statements

(All amounts in United States Dollars, unless otherwise stated)

 
                                  Notes                    For the six                 For the six 
                                                                months                      months 
                                                                 ended                       ended 
                                                          30 September                30 September 
                                                                  2016                        2015 
                                                             Unaudited                   Unaudited 
-------------------------------  -------  ----------------------------  -------------------------- 
 
 Income from operations 
 Revenue from services                                      70,613,189                  67,315,112 
 Other operating income                                        874,811                   1,656,659 
                                                            71,488,000                  68,971,771 
                                          ----------------------------  -------------------------- 
 
 Cost and expenses 
 Outsourced service cost                                    20,342,349                  19,298,174 
 Employee benefits expense                                  30,111,166                  27,550,087 
 Depreciation and amortisation                               2,446,182                   2,560,220 
 Other expenses                                              4,814,479                   5,831,264 
                                                            57,714,176                  55,239,745 
                                          ----------------------------  -------------------------- 
 
 Operating profit                                           13,773,824                  13,732,026 
 Finance income                                                163,978                     207,589 
 Finance cost                                              (3,781,295)                 (4,654,556) 
 Profit before tax                                          10,156,507                   9,285,059 
                                          ----------------------------  -------------------------- 
 
 Income tax expense                                          1,418,337                   1,492,963 
 Profit for the year attributable 
  to equity holders of the parent                            8,738,170                   7,792,096 
                                          ============================  ========================== 
 
 
 Earnings per share         10 
 Basic                                              0.04                            0.04 
 Diluted                                            0.04                            0.04 
 Par value of each share 
  in GBP                                            0.01                            0.01 
 
 

(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)

Unaudited Condensed Consolidated Statements of Other Comprehensive Income

(All amounts in United States Dollars, unless otherwise stated)

 
                                             For the six months   For the six months 
                                                          ended                ended 
                                              30 September 2016    30 September 2016 
                                                      Unaudited            Unaudited 
-------------------------------------  ------------------------  ------------------- 
 Profit after tax for the year                        8,738,170            7,792,096 
 Exchange differences on translating 
  foreign operations                                  (451,864)          (2,370,855) 
                                       ------------------------  ------------------- 
 Total comprehensive income 
  attributable to equity holders                      8,286,306            5,421,241 
                                       ------------------------  ------------------- 
 
 

(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)

Unaudited Condensed Consolidated Statements of Changes in Equity

(All amounts in United States Dollars, unless otherwise stated)

 
                    Share      Additional      Share         Merger           Other components         Retained      Total 
                    capital      Paid in    compensation     reserve              of equity            earnings      equity 
                                 Capital      reserve 
---------------                            -------------  ------------  ---------------------------  -----------  ----------- 
                                                                            Foreign         Net 
                                                                           currency       defined 
                                                                          translation     benefit 
                                                                            reserve      liability 
---------------  ----------  ------------  -------------  ------------  -------------  ------------  -----------  ----------- 
 Balance as at 
  01 April 2015   3,195,334    11,009,480         63,986   (1,049,386)    (7,863,352)        32,877   47,894,372   53,283,311 
 Issue of 
  ordinary 
  shares            580,841     4,442,329              -             -              -             -            -    5,023,169 
 Profit for the 
  year                    -             -              -             -              -             -   16,907,788   16,907,788 
 Other 
  comprehensive 
  loss                    -             -              -             -    (2,242,802)       151,616            -   2,091,186) 
---------------  ----------  ------------  -------------  ------------  -------------  ------------  -----------  ----------- 
 Total 
  comprehensive 
  income 
  for the 
  period                  -             -              -             -    (2,242,802)       151,616   16,907,788   14,816,602 
---------------  ----------  ------------  -------------  ------------  -------------  ------------  -----------  ----------- 
 Balance as at 
  31 March 2016   3,776,175    15,451,809         63,986   (1,049,386)   (10,106,154)       184,493   64,802,160   73,123,083 
 

(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)

Unaudited Condensed Consolidated Statements of Changes in Equity

(All amounts in United States Dollars, unless otherwise stated)

 
                    Share      Additional       Share          Merger          Other components       Retained       Total 
                    capital     Paid in      compensation      reserve             of equity           earnings      equity 
                                Capital        reserve 
                                                                            Foreign         Net defined 
                                                                             currency 
                                                                             translation     benefit 
                                                                             reserve         liability 
 Balance as at 
  01 April 
  2016            3,776,175    15,451,809          63,986    (1,049,386)    (10,106,154)   184,493   64,802,160   73,123,083 
 Profit for the 
  year                    -             -               -              -               -         -    8,738,170    8,738,170 
 Other 
  comprehensive 
  loss                    -             -               -              -       (451,864)         -            -    (451,864) 
 Total 
  comprehensive 
  income for 
  the period              -             -               -              -       (451,864)         -    8,738,170    8,286,306 
 Balance as at 
  30 September 
  2016            3,776,175    15,451,809          63,986    (1,049,386)    (10,558,018)   184,493   73,540,330   81,409,389 
 

(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)

Unaudited Condensed Consolidated Statements of Cash Flows

(All amounts in United States Dollars, unless otherwise stated)

 
       For the six months   For the six months 
                    ended                ended 
        30 September 2016         30 September 
                                          2015 
 
 
 
 
 (A) Cash flow from operating activities 
 Profit before tax                                                     10,156,507                      9,285,059 
 Adjustments 
 Depreciation and amortisation                                          2,446,182                      2,560,220 
 Loss on disposal of property, plant                                          306                              - 
  and equipment 
 Profit on disposal of property, plant 
  and equipment                                                                 -                       (21,059) 
 Provision for doutful debts written                                     (83,882)                              - 
  back 
 Amortization of loan processing fee                                      477,985                        516,785 
 Sundry balances written back                                               (121)                              - 
 Unrealised foreign exchange gain                                       (687,284)                      (688,980) 
 Finance income                                                         (163,978)                      (207,589) 
 Finance cost                                                           3,303,310                      4,137,771 
                                                   ------------------------------  ----------------------------- 
                                                                       15,449,025                     15,582,207 
 
 Changes in operating assets and liabilities 
 (Increase)/ Decrease in trade and other 
  receivables                                                           3,837,266                    (5,636,382) 
 (Increase)/ Decrease in other assets 
  (current and non-current)                                           (1,734,529)                      1,130,129 
 Increase / (Decrease) Non-current liabilities, 
  trade payables & other current liabilities                          (3,817,642)                        654,808 
 (Decrease)/ Increase in employee benefit 
  obligations                                                              67,574                      (248,118) 
                                                   ------------------------------  ----------------------------- 
 Cash generated from operations                                        13,801,694                     11,482,644 
 
 Income taxes paid                                                    (1,253,211)                    (2,018,000) 
                                                   ------------------------------  ----------------------------- 
 Net cash generated from operating 
  activities                                                           12,548,483                      9,464,644 
                                                   ------------------------------  ----------------------------- 
 
 (B) Cash flow for investing activities 
 Payments for purchase of property plant 
  and equipment                                                         (472,902)                      (410,210) 
 Redemption of fixed deposit                                              167,613                              - 
 Proceeds from disposal of property, 
  plant & equipment                                                           371                         26,328 
 Payments for purchase of other intangible 
  assets                                                                (143,957)                      (201,221) 
 Interest received                                                        164,754                        172,258 
 
 Net cash used in investing activities                                  (284,121)                      (412,845) 
                                                   ------------------------------  ----------------------------- 
 
 
 
 (C ) Cash flow from financing activities 
 Proceeds of share capital                                                 -                     5,023,170 
 Interest paid                                                   (3,303,310)                   (4,137,771) 
 Repayment of long-term borrowings                               (6,579,679)                  (15,528,882) 
 
 Net cash used in financing activities                           (9,882,989)                  (14,643,483) 
                                               -----------------------------  ---------------------------- 
 
 Net increase/(decrease) in cash and 
  cash equivalents                                                 2,381,372                   (5,591,684) 
 Cash and cash equivalents at the beginning 
  of the year                                                      9,523,577                    13,447,099 
 Effect of exchange rate changes on 
  cash                                                              (37,141)                     (108,953) 
 Cash and cash equivalents at the 
  end of the year                                                 11,867,808                     7,746,462 
                                               -----------------------------  ---------------------------- 
 
 Cash and cash equivalents comprise 
 Cash in hand                                                         15,240                        13,713 
 Balances with banks in current account                           11,852,568                     7,425,391 
 Balances with banks in deposit account                                    -                       307,358 
                                                                  11,867,808                     7,746,462 
                                               -----------------------------  ---------------------------- 
 

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(All amounts in United States Dollars, unless otherwise stated)

   1.    INTRODUCTION 

iEnergizer Limited (the 'Company' or 'iEnergizer ') was incorporated in Guernsey on 12 May 2010.

iEnergizer Limited is a 'Company limited by shares' and is domiciled in Guernsey. The registered office of the Company is located at Mont Crevelt House, Bulwer Avenue, St. Sampson, Guernsey, GY2 4 LH. iEnergizer was listed on the Alternative Investment Market ('AIM') of London Stock Exchange on 14 September 2010.

iEnergizer through its subsidiaries iEnergizer Holdings Limited, iEnergizer Group FZ - LLC, iEnergizer IT Services Private Limited, iEnergizer Management Services Limited, iEnergizer BPO Limited, iEnergizer Aptara Limited and Aptara Inc and subsidiaries. (together the 'Group') is engaged in the business of call centre operations, providing business process outsourcing (BPO) and content delivery services, and back office services to their customers, who are primarily based in the United States of America and India, from its operating offices in Mauritius and India.

   2.   GENERAL INFORMATION AND STATEMENT OF COMPLIANCE WITH IFRS 

These Unaudited Condensed Consolidated Interim Financial Statements are for the six months ended 30 September 2016 and 2015. They have been prepared in accordance with IAS 34 Interim Financial Reporting as developed and published by the International Accounting Standards Board ('IASB'), on a going concern basis. They do not include all of the information required in annual financial statements in accordance with IFRS, and should be read in conjunction with the annual financial statements for the years ended 31 March 2016 and 2015.

The Unaudited Condensed Consolidated Interim Financial Statementshave been prepared and presented in United States Dollar (US$) which is the Company's functional currency.

These Unaudited Condensed Consolidated Interim Financial Statements were approved by the Board on 10 November 2016.

The Group has applied the same accounting policies in preparing these unaudited management financial information as adopted in the most recent annual audited financial information of the Group.

   3.   SIGNIFICANT ACCOUNTING POLICIES 

The interim financial statements have been prepared in accordance with the accounting policies adopted in the Group's most recent annual financial statements for the years ended 31 March 2016 and 2015.

Standards issued but not yet effective

   --     IFRS9 Financial instruments 

In July 2014, the IASB completed its project to replace IAS 39, Financial Instruments: Recognition and Measurement by publishing the final version of IFRS 9: Financial Instruments. IFRS 9 introduces a single approach for the classification and measurement of financial assets according to their cash flow characteristics and the business model they are managed in, and provides a new impairment model based on expected credit losses. IFRS 9 also includes new guidance regarding the application of hedge accounting to better reflect an entity's risk management activities especially with regard to managing non-financial risks. The new standard is effective for annual reporting periods beginning on or after January 1, 2018 (but not yet endorsed in EU), while early application is permitted. The management is currently evaluating the impact that this new standard will have on its consolidated financial statements.

   --     IFRS15 Revenue from Contract with Customers 

IFRS 15 supersedes all existing revenue requirements in IFRS (IAS 11 Construction Contracts, IAS 18 Revenue and related interpretations). According to the new standard, revenue is recognized to depict the transfer of promised goods or services to a customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. IFRS 15 establishes a five step model that will apply to revenue earned from a contract with a customer (with limited exceptions), regardless of the type of revenue transaction or the industry. Extensive disclosures will be required, including disaggregation of total revenue; information about performance obligation; changes in contract asset and liability account balances between periods and key judgments and estimates. The standard permits the use of either the retrospective or cumulative effect transition method. The effective date for adoption of IFRS is annual period beginning on or after January 1, 2018 (but not yet endorsed in EU). The Group is currently evaluating the impact of the above pronouncements on the Group's consolidated financial statements.

-- IFRS 16 Leases

On January 13, 2016, the International Accounting Standards Board issued the final version of IFRS 16, Leases. IFRS 16 will replace the existing leases Standard, IAS 17 Leases, and related interpretations. The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases. IFRS 16 introduces a single lessee accounting model and requires a lessee to recognize assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. The Standard also contains enhanced disclosure requirements for lessees. The effective date for adoption of IFRS 16 is annual periods beginning on or after January 1, 2019 (but not yet endorsed in EU), though early adoption is permitted for companies applying IFRS 15 Revenue from Contracts with Customers. The Company is currently assessing the impact of adopting IFRS 16 on the Company's consolidated financial statements.

   4.   SIGNIFICANT MANAGEMENT JUDGEMENT IN APPLYING ACCOUNTING POLICIES AND ESTIMATION UNCERTAINTY 

When preparing the Unaudited Condensed Consolidated Interim Financial Statements, management undertakes a number of judgements, estimates and assumptions about recognition and measurement of assets, liabilities, income and expenses. The actual results may differ from the judgements, estimates and assumptions made by management, and will seldom equal the estimated results.

The judgements, estimates and assumptions applied in the Unaudited Condensed Consolidated Interim Financial Statements, including the key sources of estimation uncertainty were the same as those applied in the Group's last audited financial statements for the year ended 31 March 2016.

   5.   GOODWILL 

The net carrying amount of goodwill can be analysed as follows:

 
 Particulars                           Amount 
-----------------------------  -------------- 
 Balance as at 01 April 2015      102,270,059 
 Translation adjustment               (7,299) 
 Balance as at 31 March 2016      102,262,760 
-----------------------------  -------------- 
 
 
 Particulars                             Amount 
---------------------------------  ------------ 
 Balance as at 01 April 2016        102,262,760 
 Translation adjustment                 (1,003) 
 Balance as at 30 September 2016    102,261,757 
---------------------------------  ------------ 
 
   6.   OTHER INTANGIBLE ASSETS 

The Intangible assets comprise of computer software, customer contracts.

 
     Particulars         Customer      Computer    Patent    Trade mark      Intangibles          Total 
                         contracts*    softwares                           under development 
---------------------  ------------  -----------  --------  -----------  -------------------  ------------ 
 Cost 
 Balance as at 01 
  April 2015             24,127,796    2,516,249   100,000   12,000,000              132,490    38,876,535 
                       ------------  -----------  --------  -----------  -------------------  ------------ 
 Additions                        -      450,456                                                   450,456 
 Disposals                        -            -         -            -                    -             - 
 Translation 
  adjustment                (8,164)    (132,529)         -            -                    -     (140,693) 
                       ------------  -----------  --------  -----------  -------------------  ------------ 
 Balance as at 31 
  March 2016             24,119,632    2,834,176   100,000   12,000,000              132,490    39,186,298 
 
 Accumulated amortization 
 Balance as at 01 
  April 2015             13,473,400    2,141,813         -            -              132,490    15,747,703 
                       ------------  -----------  --------  -----------  -------------------  ------------ 
 Amortization/ 
  impairment 
  for the period          2,779,416      416,743         -            -                    -     3,196,159 
 Disposals                        -            -         -            -                    -             - 
 Translation 
  adjustment                (8,164)     (88,630)         -            -                    -      (96,794) 
                       ------------  -----------  --------  -----------  -------------------  ------------ 
 Balance as at 31 
  March 2016             16,244,652    2,469,926         -            -              132,490    18,847,068 
                       ------------  -----------  --------  -----------  -------------------  ------------ 
 
 Carrying values as 
  at 31 
  March 2016              7,874,980      364,250   100,000   12,000,000                    -    20,339,230 
---------------------  ------------  -----------  --------  -----------  -------------------  ------------ 
 

*Customer contracts are basically intangible assets created for long standing customer relationships in content delivery segment. Once the relationship is established the work continues to flow on a year to year basis. The carrying amount of such contracts is USD 7,874,980 and remaining amortization period is 3.8 years.

 
  Particulars            Customer               Computer               Patent                Trade mark             Intangibles               Total 
                        contracts*              softwares                                                         under development 
---------------  -----------------------  -------------------  ----------------------  ----------------------  ---------------------  --------------------- 
 Cost 
 Balance as at 
  01 April 2016               24,119,632            2,834,176                 100,000              12,000,000                132,490             39,186,298 
 Additions                             -              143,957                                                                                       143,957 
 Disposals                             -                    -                       -                       -                      -                      - 
 Translation 
  adjustment                     (1,122)             (20,428)                       -                       -                      -               (21,550) 
 Balance as at 
  30 September 
  2016                        24,118,510            2,957,705                 100,000              12,000,000                132,490             39,308,705 
                 -----------------------  -------------------  ----------------------  ----------------------  ---------------------  --------------------- 
 
 Accumulated amortization 
 Balance as at 
  01 April 2016               16,244,652            2,469,926                       -                       -                132,490             18,847,068 
                 -----------------------  -------------------  ----------------------  ----------------------  ---------------------  --------------------- 
 Amortisation/ 
  impairment 
  for 
  the period                   1,389,708              151,535                       -                       -                      -              1,541,243 
 Disposals                             -                    -                       -                       -                      -                      - 
 Translation 
  adjustment                     (1,122)             (18,196)                       -                       -                      -               (19,318) 
 Balance as at 
  30 September 
  2016                        17,633,238            2,603,265                       -                       -             132,490          20,368,993 
                 -----------------------  -------------------  ----------------------  ----------------------  ---------------------  --------------------- 
 
 Carrying 
  values as at 
  30 September 
  2016                    6,485,272               354,440                  100,000            12,000,000                           -        18,939,712 
---------------  -----------------------  -------------------  ----------------------  ----------------------  ---------------------  --------------------- 
 

*Customer contracts are basically intangible assets created for long standing customer relationships in content delivery segment. Once the relationship is established the work continues to flow on a year to year basis. The carrying amount of such contracts is USD 6,485,272 and remaining amortization period is 2.3 years.

   7.   PROPERTY, PLANT AND EQUIPMENT 

Property, plant and equipment comprise of the following:

 
  Particulars           Computer                  Office                 Furniture               Air conditioner                Vehicle                  Leasehold                Plant and               Total 
                         and data                Equipment              and fixtures               and generator                                        improvements               machinery 
                        equipment 
--------------  ------------------------  ---------------------  -------------------------  -------------------------  ------------------------  ------------------------  -----------------------  ---------------- 
 Cost 
 Balance as at 
  01 April 
  2015                         4,528,397                760,137                  1,103,739                    181,912                    30,719                 4,354,526                1,733,404     12,692,834 
                ------------------------  ---------------------  -------------------------  -------------------------  ------------------------  ------------------------  -----------------------  ---------------- 
 Additions                       517,626                 37,241                    156,831                     89,885                         -                   148,762                   61,678         1,012,023 
 Disposals 
  (Net)                        (122,702)                  (621)                          -                          -                         -                         -                  (2,599)         (125,922) 
 Translation 
  adjustment                   (238,697)               (40,864)                   (55,295)                    (9,806)                     (855)                 (222,576)                 (92,746)         (660,839) 
 Balance as at 
  31 March 
  2016                         4,684,624                755,893                  1,205,275                    261,991                    29,864                 4,280,712                1,699,737        12,918,096 
                ------------------------  ---------------------  -------------------------  -------------------------  ------------------------  ------------------------  -----------------------  ---------------- 
 
 Accumulated 
 depreciation 
 Balance as at 
  01 April 
  2015                         3,048,059                264,609                    527,897                     92,117                    20,813                   951,463                  776,985         5,681,943 
                ------------------------  ---------------------  -------------------------  -------------------------  ------------------------  ------------------------  -----------------------  ---------------- 
 Depreciation 
  for the 
  year                           730,756                128,366                     75,035                     34,534                     4,513                   580,916                  242,882         1,797,002 
 Disposals 
  (Net)                         (99,530)                  (617)                          -                          -                         -                         -                  (2,599)         (102,746) 
 Translation 
  adjustment                   (166,171)               (13,575)                   (26,181)                    (5,364)                     (724)                  (57,472)                 (38,274)         (307,761) 
 Balance as at 
  31 March 
  2016                         3,513,114                378,783                    576,751                    121,287                    24,602                 1,474,907                  978,994         7,068,438 
                ------------------------  ---------------------  -------------------------  -------------------------  ------------------------  ------------------------  -----------------------  ---------------- 
 Carrying 
  values as at 
  31 March 
  2016                         1,171,510                377,110                    628,524                    140,704                     5,262                 2,805,805                  720,743         5,849,658 
--------------  ------------------------  ---------------------  -------------------------  -------------------------  ------------------------  ------------------------  -----------------------  ---------------- 
 
 
  Particulars        Computer            Office           Furniture         Air conditioner          Vehicle             Leasehold          Plant and          Total 
                      and data          Equipment        and fixtures        and generator                              improvements         machinery 
                     equipment 
--------------  ------------------  ---------------  ------------------  --------------------  -------------------  ------------------  -----------------  ------------- 
 Cost 
 Balance as at 
  01 April 
  2016                   4,684,624          755,893           1,205,275               261,991               29,864           4,280,712          1,699,737     12,918,096 
                ------------------  ---------------  ------------------  --------------------  -------------------  ------------------  -----------------  ------------- 
 Additions                 325,322            5,358               6,145                88,075                    -              10,522             37,480        472,902 
 Disposals 
  (Net)                    (2,920)          (1,363)                   -                     -                    -               (274)                  -        (4,557) 
 Translation 
  adjustment              (30,757)          (5,927)             (8,488)               (1,987)                (118)            (32,724)           (13,997)       (93,998) 
 Balance as at 
  30 September 
  2016                   4,976,269          753,961           1,202,932               348,079               29,746           4,258,236          1,723,220     13,292,443 
                ------------------  ---------------  ------------------  --------------------  -------------------  ------------------  -----------------  ------------- 
 
 Accumulated depreciation 
 Balance as at 
  01 April 
  2016                   3,513,114          378,783           576,751              121,287                  24,602           1,474,907            978,994      7,068,438 
                ------------------  ---------------  ------------------  --------------------  -------------------  ------------------  -----------------  ------------- 
 
 Depreciation 
  for the year             345,035           71,809              41,078                23,854                2,250             291,609            129,304        904,939 
 Disposals 
  (Net)                    (2,920)            (960)                   -                     -                    -                   -                  -        (3,880) 
 Translation 
  adjustment             (23,595)           (2,739)             (3,752)                 (862)                (103)            (10,136)            (8,102)       (49,289) 
 Balance as at 
  30 September 
  2016                   3,831,634          446,893             614,077               144,279               26,749           1,756,380          1,100,196      7,920,208 
                ------------------  ---------------  ------------------  --------------------  -------------------  ------------------  -----------------  ------------- 
 Carrying 
  values as at 
  30 September 
  2016                   1,144,635          307,068             588,855               203,800                2,997           2,501,856            623,024      5,372,235 
--------------  ------------------  ---------------  ------------------  --------------------  -------------------  ------------------  -----------------  ------------- 
 
   8.   SHORT TERM FINANCIAL ASSETS 
 
 Particulars                                      30 September     31 March 2016 
                                                          2016 
----------------------------------------  --------------------  ---------------- 
 Security deposits                                      40,342            22,132 
 Restricted cash                                     2,844,269         2,791,324 
 Short term investments (fixed deposits 
  with maturity less than 12 months)                 1,166,251         1,386,574 
 Derivative financial instruments                      579,744           189,941 
 Due from officers and employees                        59,348            34,286 
 Others                                                      -               776 
----------------------------------------  --------------------  ---------------- 
                                                     4,689,954         4,425,033 
----------------------------------------  --------------------  ---------------- 
 
 
 

Short term investments comprise of investment through banks in deposits denominated in various currency units bearing fixed rate of interest.

   9.   EARNINGS PER SHARE 

The calculation of the basic earnings per share is based on the profits attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period.

Calculation of basic and diluted profit per share for the period ended 30 September 2016 is as follows:

Basic earnings per share

 
                 Particulars                          30 September         30 September 
                                                          2016                  2015 
---------------------------------------------  ----  -------------  -------------------------- 
 Profit attributable to shareholders                     8,738,170                 7,792,096 
 Weighted average numbers shares outstanding           196,387,714               190,130,008 
 Basic earnings per share (USD)                               0.04                      0.04 
----------------------------------------------  ---  -------------  ------------------------ 
 
 

Diluted earnings per share

 
                 Particulars                              30 September              30 September 
                                                               2016                      2015 
---------------------------------------------  ---  ------------------------  ------------------------ 
 Profit attributable to 
  shareholders                                                     8,738,170                 7,792,096 
 Weighted average numbers shares outstanding                     196,387,714               190,130,008 
 Diluted earnings per 
  share (USD)                                                           0.04                      0.04 
----------------------------------------------  ----------------------------  ------------------------ 
 
 

10. RELATED PARTY TRANSACTIONS

The related parties for each of the entities in the Group have been summarised in the table below:

 
 Nature of the relationship      Related Party's Name 
------------------------------  ------------------------------------------- 
 
 I. Ultimate controlling         Mr. Anil Agarwal 
  party 
 
 II. Entities directly 
  or indirectly through            EICR Limited (Parent of iEnergizer 
  one or more intermediaries,      Limited) 
  control, are controlled 
  by, or are under common 
  control with, the reported 
  enterprises 
 
 
 III. Key management personnel   Mr. Anil Agarwal (Ultimate Shareholder, 
  ("KMP") and significant         EICR Limited) 
  shareholders 
                                 Mr. Chris de Putron (Director, iEnergizer 
                                  Limited) 
                                  Mr. Mark De La Rue (Director, iEnergizer 
                                  Limited) 
                                  Mr. Marc Vassanelli (Director, iEnergizer 
                                  Limited) 
 
 

Disclosure of transactions between the Group and related parties and the outstanding balances is as under:

Transactions with parent company

 
 Particulars                        30 September   30 September 
                                            2016           2015 
--------------------------------  --------------  ------------- 
 
 Transactions during the period 
  ended 
 Share issued to EICR Limited                  -      5,023,170 
 
 

Transactions with KMP and relative of KMP

 
 Particulars                            30 September        30 September 
                                                2016                2015 
--------------------------------  ------------------  ------------------ 
 Transactions during the period 
  ended 
 Short term employee benefits 
 Remuneration paid to directors 
 Sara Latham                                       -              19,114 
 Neil Campling                                     -             114,736 
 Chris De Putron                               6,590               7,721 
 Mark De La Rue                                6,590               7,721 
 Marc Vassanelli                              19,771              23,102 
 
 Balances at the end of 
 Total remuneration payable                   67,367              19,233 
--------------------------------  ------------------  ------------------ 
 

11. SEGMENT REPORTING

Management currently identifies the Group's three services lines real time processing, back office services and content delivery as operating segments on the basis of operations. These operating segments are monitored and strategic decisions are made on the basis of adjusted segment operating results.

The Chief Operating Decision Maker ("CODM") evaluates the Group's performance and allocates resources based on an analysis of various performance indicators by reportable segments. The Group's reportable segments are as follows:

   1.    Real time processing 
   2.    Back office services 
   3.    Content delivery 
   4.    Others 

The measurement of each segment's revenues, expenses and assets is consistent with the accounting policies that are used in preparation of the Unaudited Condensed Consolidated Interim Financial Statements. In addition, two minor operating segments, for which the quantitative thresholds have not been met, are currently combined below under 'Others'. Segment information can be analysed as follows for the reporting periods under review:

 
                                                                                                    30 September 2016 
                                                                             ---------------------------------------- 
                           Real time     Back office      Content delivery           Others              Total 
                           processing      services 
-----------------------  ------------  ---------------  -------------------  ---------------------  --------------- 
 Revenue from external 
  customers                12,484,717       22,461,326           35,667,146                      -       70,613,189 
-----------------------  ------------  ---------------  -------------------  ---------------------  --------------- 
 Segment revenue           12,484,717       22,461,326           35,667,146                      -       70,613,189 
-----------------------  ------------  ---------------  -------------------  ---------------------  --------------- 
 Other income                 132,849                -              743,667                (1,705)          874,811 
-----------------------  ------------  ---------------  -------------------  ---------------------  --------------- 
 Cost of outsourced 
  Services                          -       15,154,329            5,188,020                      -       20,342,349 
 Employee benefit 
  expense                  10,026,814            4,500           20,079,852                      -       30,111,166 
 Depreciation and 
  amortization                381,425                -            2,064,757                      -        2,446,182 
 Other expenses               688,659          288,409            3,688,495                148,916        4,814,479 
-----------------------  ------------  ---------------  -------------------  ---------------------  --------------- 
 Segment operating 
  profit                    1,520,668        7,014,088            5,389,689              (150,621)       13,773,824 
-----------------------  ------------  ---------------  -------------------  ---------------------  --------------- 
 
 Segment assets            13,880,334       11,963,082           83,985,419             77,880,662      187,709,497 
-----------------------  ------------  ---------------  -------------------  ---------------------  --------------- 
 

30 September 2015

 
                               Real time       Back office          Content          Others         Total 
                              processing          services         delivery 
 ------------------  -------------------  ----------------  ---------------  --------------  ------------ 
 Revenue from 
  external 
  customers                   10,246,421        18,996,395       38,072,296               -      67,315,112 
-------------------  -------------------  ----------------  ---------------  --------------  -------------- 
 Segment revenue              10,246,421        18,996,395       38,072,296               -      67,315,112 
-------------------  -------------------  ----------------  ---------------  --------------  -------------- 
 Other income                     46,150                 -        1,610,509               -       1,656,659 
-------------------  -------------------  ----------------  ---------------  --------------  -------------- 
 Cost of outsourced 
  Services                             -        12,362,198        6,935,976               -      19,298,174 
 Employee benefit 
  expense                      7,820,436             4,500       19,725,151               -      27,550,087 
 Depreciation 
  and amortization               296,041                 -        2,264,179               -       2,560,220 
 Other expenses                  695,830           185,450        4,366,249         583,735       5,831,264 
-------------------  -------------------  ----------------  ---------------  --------------  -------------- 
 Segment operating 
  profit                       1,480,264         6,444,247        6,391,250       (583,735)      13,732,026 
-------------------  -------------------  ----------------  ---------------  --------------  -------------- 
 
 Segment assets               10,792,135        12,236,900       84,881,222      76,957,797     184,868,054 
-------------------  -------------------  ----------------  ---------------  --------------  -------------- 
 
 

Revenue from the following customer's amounts to more than 10% of consolidated revenue during the period presented.

30 September 2016

 
 Revenue from           Segment             Amount 
--------------  ----------------------  ---------- 
 Customer 1      Back office Services    8,321,461 
--------------  ----------------------  ---------- 
 Customer 2        Content Delivery      7,155,188 
--------------  ----------------------  ---------- 
 

30 September 2015

 
 Revenue from           Segment              Amount 
--------------  ----------------------  ----------- 
 Customer 1      Real time processing     7,388,931 
--------------  ----------------------  ----------- 
 

12. FINANCIAL ASSETS AND LIABILITIES

Fair value of carrying amounts of assets and liabilities presented in the statement of financial position relates to the following categories of assets and liabilities:

 
 Financial assets                                      30 September   31 March 2016 
                                                               2016 
-----------------------------------------  ------------------------  -------------- 
 
 Non-current assets 
 Loans and receivables 
 Security deposits                                          541,912         531,204 
 Restricted cash                                             29,697          29,932 
 Fixed deposit                                               60,501               - 
 Current assets 
 Loans and receivables 
 Trade receivables                                       25,401,292      27,613,023 
 Cash and cash equivalents                               11,867,808      10,166,328 
 Restricted cash                                          2,844,269       2,791,324 
 Security deposits                                           40,342          22,132 
 Short term investments                                   1,166,251       1,386,574 
 Due from officers and employees                             59,348          34,286 
 Other short term financial assets                                -             776 
 
 Fair value through profit and loss: 
 Derivative financial instruments                           579,744         189,941 
                                                         42,591,164      42,765,520 
-----------------------------------------  ------------------------  -------------- 
 
 Financial liabilities                                 30 September   31 March 2016 
                                                               2016 
-----------------------------------------  ------------------------  -------------- 
 
 Non-current liabilities 
 Financial liabilities measured 
  at amortized cost: 
 Long term borrowings                                    67,558,758      73,741,220 
 
   Current liabilities 
 Financial liabilities measured 
  at amortized cost: 
 Short term borrowings                                            -         642,751 
 Trade payables                                           7,303,692       9,398,856 
 Current portion of long term borrowings                 13,927,710      13,846,942 
 Other current liabilities                                6,839,720       7,674,671 
 
 Fair value through profit and loss: 
 Derivative financial instruments                                 -               - 
 
                                                         95,629,880     105,304,440 
-----------------------------------------  ------------------------  -------------- 
 

These non-current financial assets and liabilities, current financial assets and liabilities have been recorded at their respective carrying amounts as the management considers the fair values to be not materially different from their carrying amounts recognised in the statement of financial positions as these are expected to realise within one year from the reporting dates. Derivative financial instruments, recorded at fair value through profit and loss, are recorded at their respective fair values on the reporting dates.

13. FAIR VALUE HIERARCHY

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

No financial assets/liabilities have been valued using level 1 and 3 fair value measurements.

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis:

 
                                               Fair value measurements 
                                                at reporting date 
                                                using 
-----------------------------  -------------  ------------------------ 
 30 September 2016                 Total                       Level 2 
-----------------------------  -------------  ------------------------ 
                                   (Notional 
 Assets                             amount) 
 Derivative instruments 
 Forward contracts (currency 
  - USD/INR)                     17,200,000                    579,744 
-----------------------------  -------------  ------------------------ 
 
 
                                               Fair value measurements 
                                                at reporting date 
                                                using 
-----------------------------  -------------  ------------------------ 
 31 March 2016                     Total                       Level 2 
-----------------------------  -------------  ------------------------ 
                                   (Notional 
 Liabilities                        amount) 
 Derivative instruments 
 Forward contracts (currency 
  - USD/INR)                     22,950,000                    189,941 
-----------------------------  -------------  ------------------------ 
 

14. COMMITMENT AND CONTINGENCIES

As at 30 September 2016 and 31 March 2016, the Group had a capital commitment of USD 60,949 and USD 99,707 respectively for acquisition of property, plant and equipment.

The contingent liability in respect of claims filed by erstwhile employees against the group companies amounts to USD 93,299 and USD 81,190 as on 30 September 2016 and 31 March 2016 respectively and in respect of interest on VAT amounts to USD 10,481 as on 30 September 2016 (USD 10,563 as on 31 March 2016).

Guarantees: As at 30 September 2016 and 31 March 2016, guarantees provided by banks on behalf of the group companies to the revenue authorities and certain other agencies, amount to approximately USD 28,901 and USD 29,129 respectively.

15. ESTIMATES

The preparation of interim financial statements require management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing these Unaudited Condensed Consolidated Interim Financial Statements, the significant judgments made by the management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the years ended 31 March 2016 and 2015.

16. FINANCIAL RISK MANAGEMENT

The Group's financial risk management objectives and policies are consistent with those disclosed in the consolidated financial statements as at and for the years ended 31 March 2016 and 2015.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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