BNN Technology PLC Annual Report & Accounts and cash position update (9221C)

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RNS Number : 9221C

BNN Technology PLC

21 April 2017

21 April 2017

BNN Technology PLC

("BNN" or the "Company")

Posting of Annual Report and Accounts and Update on Group Cash Position

BNN Technology (AIM: BNN), a London-listed Chinese technology, content and services company, confirms that the fully audited Annual Report and Accounts for the year ended 31 December 2016 were posted to shareholders today.

A copy of the Annual Report & Accounts is also available on the Company's website: http://bnntechnology.com/financial.php

A Notice of AGM will be sent to Shareholders shortly and a separate announcement confirming the date of the AGM will be made in this regard.

The report describes, inter alia, our strategic vision and key business areas. Our vision is to be a leading Chinese technology portal with three key business areas: payments, content and value added services. Recent announcements have outlined a clear portfolio of sectors and revenue streams in which BNN will continue to grow and invest over the coming months and years.

Group Cash & Debt Position

In the Annual Report and Accounts, cash balances comprise an unrestricted balance of GBP28m and a restricted balance of GBP14.2m (see the group consolidated balance sheet and note 21 to the financial statements) at 31 December 2016. Accordingly, cash and cash equivalents at the year end were GBP42.2m in total, which exceeded our short and long term of borrowings of GBP19.7m by GBP22.5m. The directors were of the opinion that this represented sufficient cash resources to expedite the Group's strategy prior to the student platform and credit services initiatives, and the associated fundraising to execute on these opportunities, announced on 13 April 2017.

Loans at the year end of GBP19.7m in total comprised secured bank loans of GBP11.6m and unsecured loans of GBP8.1m (principally the convertible loan notes, of which GBP2.4m has since been converted in to equity in January 2017) (notes 23 and 32 to the accounts). The secured bank loans are secured by restricted cash deposits (note 21) and reflect the mechanisms through which cash is transferred from the parent company to our operating companies in China. This funding model, where onshore loans in China are secured by offshore deposits, is a common funding model for foreign incorporated companies operating in China.

Since the year end, GBP8m of cash has been utilised in the first four months of the year reflecting annual provincial Xinhua payments, as part of the Xinhuatong/Xinhua News Agency agreement, working capital for the mobile phone business, NASDAQ listing advisory costs, year-end audit fees and ongoing company administrative and capital expenses.

The placing announced on 13 April 2017 raised a further GBP25m (before expenses), subject in part to shareholder approval, specifically to fund new initiatives in a student platform and credit services. Those funds, together with existing funds, are anticipated to be sufficient to deliver on all of the initiatives announced to date.

As stated in earlier announcements, we expect the motorist platform to launch in the second half of 2017, and thus, along with our mobile top up business, support cash generation for the business.

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For further information, please contact:

 
                                            +44 (0) 1565 
 BNN Technology plc                               872990 
 Darren Mercer, Chief Executive 
  Scott Kennedy, Chief Financial Officer 
  Stephen Benzikie, Communications 
                                              +44 (0) 20 
 Brunswick Group (Public Relations)            7404 5959 
 Brian Buckley / Diana Vaughton 
 Strand Hanson Limited (Nominated             +44 (0) 20 
  & Financial Adviser)                         7409 3494 
 Andrew Emmott / Ritchie Balmer 
 
  Mirabaud Securities LLP (Broker)            +44 (0) 20 
  Peter Krens                                  3167 7221 
 

About the Group

BNN Technology plc is a Chinese technology, content and services company that builds long-term partnerships to deliver China's citizens with value-added services, content and evolving opportunities.

Listed on AIM since 2014 the Group principally engages in providing technology to partners to facilitate fulfilment of payments and services online and on mobile apps through partnerships or affiliate agreements with corporate and key government partners, and, developing digital content, both online and mobile. Through its partnership with Xinhuatong and NewNet, BNN facilitates mobile payments, through its technology platform, on the Xinhua News mobile app in 12 provinces in China. The Chinese consumer shift to 'life on mobile' is only just beginning and BNN's platform technology enables urban and rural communities across China to access exclusive content and pay for more services online.

The Group employs nearly 300 professionals throughout China.

This information is provided by RNS

The company news service from the London Stock Exchange

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April 21, 2017 02:00 ET (06:00 GMT)