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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Medilink | LSE:MEDI | London | Ordinary Share | JE00B3FFC377 | ORD 5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.30 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMMEDI
RNS Number : 3843C
Medilink-Global UK Limited
27 June 2016
27 June 2016
MEDILINK-GLOBAL UK LIMITED
("Medilink", the "Company" or the "Group")
FINAL RESULTS
Medilink-Global UK Limited (AIM: MEDI), the provider of electronic healthcard network services to insurance companies and corporate organisations to help them facilitate the administration of medical claims and healthcare data management, is pleased to announce its audited results for the year ended 31 December 2015. A copy of the annual report and accounts will be posted to shareholders tomorrow morning Malaysia time and will be available shortly thereafter from the Company's website, www.medilink-global.com.
FINANCIAL HIGHLIGHTS
-- Total revenue for the year increased by 10% to GBP1,540,000 (FY2014: GBP1,405,000). There was a significant increase in revenue in Malaysia of 31% to GBP998,000 (2014: GBP762,000).
-- Software licensing revenues increased by 130% to GBP250,000 (FY2014: GBP109,000) following the completion of the Great Eastern Life Assurance Co., Ltd project, which contributed GBP213,000 of revenue in the period (total contract value SGD625,600).
-- The Group registered a profit after tax from continued operations of GBP322,000 (FY2014: Loss after tax of GBP1,931,000). The main contributing factors were the gain on disposal of its subsidiary, Medilink (Beijing) TPA Pte Ltd (GBP783,000) tempered by an impairment loss (GBP322,000) and the software licensing revenues from the GE Singapore project of GBP213,000. The previous year's result was impacted by a goodwill impairment of GBP1,700,000.
-- Administrative costs have decreased by 10% to GBP460,000 (FY2014: GBP511,000).
-- On 1 August 2014, the Group entered into a Sale and Purchase Agreement with Selfdoctor (Beijing) Technology Co., Limited to divest 51% of its interest in Medilink (Beijing) TPA Services Co Limited. The divestment was fully completed on 10 July 2015 when the transfer of ownership took place.
OPERATIONAL HIGHLIGHTS
The business highlights of Medilink-Global UK Limited (the "Company") in the following regions.
People's Republic of China ("China")
Medilink (Beijing) TPA Co., Ltd ("Medilink China"), now a 49% held associate company of Medilink-Global UK Limited, continues to secure and renew its Third Party Administration ("TPA") service contracts with reputable and established insurers in China.
Contract renewals
During the financial year under review, Medilink China renewed contracts with 9 insurance companies.
Malaysia and Singapore
Great Eastern Life Assurance Co. Ltd ("GE Singapore")
As previously reported Medilink-Global (Asia) Pte Ltd received an order from Great Eastern Life Assurance Co., Ltd, in 2013, to study and outline the user requirement and system specification and commenced work to develop and implement its Claims Management System in 2014. The system went live in September 2015.
ETIQA Insurance Berhad ("ETIQA")
Upon completion of the system licensing and implementation for GE Singapore, MedilinkGlobal (M) Sdn Bhd entered into an agreement to provide its proprietary claims application software, 'Managed Care System' ("MCS Software"), to ETIQA Insurance Berhad ("ETIQA"), as announced on 14 January 2016.
ETIQA is a Malaysian incorporated company and is the insurance and Takaful division of Malaysia's largest financial services group, Maybank Group. It provides a wide range of personal and corporate insurance services and products as well as Sharia-compliant Takaful products.
MediLink Malaysia will license its MCS Software to ETIQA for the purpose of facilitating and allowing ETIQA to administer and process its health related insurance portfolios; relating to its insurance and Takaful plans; as well as settlement of claims to the beneficiaries.
The MCS Software project will be delivered in three phases and is expected to be completed within 19 months, and by no later than 31 December 2017. Payments will be made to Medilink Malaysia in stages throughout the project and are subject to agreed milestones, The total value of the agreement is approximately GBP275,000.
AIA Co., Ltd
AIA contributed to more than 150,000 members of the membership growth of Medilink Malaysia during the period under review.
The Directors of Medilink are confident that our relationship with AIA will continue to have a positive effect on growth for Medilink Malaysia in the years to come.
Syarikat Takaful Malaysia Bhd.
Syarikat Takaful Malaysia Bhd is a Takaful insurance company that was incorporated based on the recommendation of the "Task Force on the Study for the Establishment of an Islamic Insurance Company in Malaysia" (Task Force) set up by the Government of Malaysia in 1981.
Medilink Malaysia renewed its third party administration (TPA) contract with Syarikat Takaful Malaysia Bhd, during the period under review.
Medilink Malaysia has 2 corporate clients whose group hospitalisation and surgical insurance are insured by Syarikat Takaful Malaysia Bhd. This contract helped in contributing to an increase in 2000 members to the growth of TPA membership of Medilink Malaysia in the period under review.
The Board of Directors are confident that the collaboration between the parties shall bring positive and significant increase in the TPA membership for the years to come.
Self-funded and Government-Linked Employers market
Medilink Malaysia made small in-roads into the self-funded employer market and government-linked organisations, which collectively contributed 5,000 members to the membership growth of Medilink Malaysia during the period under review.
GOING CONCERN
The Board wishes to bring to shareholders' attention the following section from note 2 in the annual report and accounts:
Going Concern
The directors report that after making enquiry, they have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Certain shareholders and directors of the Company have provided working capital loans to the Group to finance its on-going expansion. Loans of an aggregate value of GBP678,000 are either repayable with 12 months of the date of approval of these financial statements or are not subject to a formal repayment term. The providers of the loans have informed the directors that repayment will not be sought within 12 to 18 months of the date of approval of these financial statements unless the Group has sufficient available working capital to support the making of repayments. The directors have considered and assessed the support provided by shareholders and directors and are satisfied that they will and can, if required, continue to provide the support for the development of the Group's growth over at least the next twelve months from the date of approval of these financial statements and are therefore satisfied that the going concern basis of preparation is appropriate. In considering the appropriateness of this basis of preparation. The directors have reviewed working capital forecasts for the Group and performed sensitivity analysis thereon and the key inputs into these can be found in note 10 in the annual report and accounts. The directors believe that the increasing revenues from trading activities and the continuing support of shareholders and directors will be sufficient for the Group's purposes for a minimum of 12 months from the date of the approval of these financial statements.
Enquiries:
Hot Features
Premium
MediLink-Global UK Limited Allenby Capital Limited
(Nominated Adviser and Broker)
Shia Kok Fat, Chief Executive Officer Nick Athanas/ James Reeve
Tel: 00 603 2296 3028 Tel: +44(0)20 3328 5656
www.medilink-global.com
CHAIRMAN'S STATEMENT
Medilink-Global UK Limited is pleased to present the Group's results for the year ended 31 December 2015.
FINANCIAL REVIEW
The Group recorded revenues of GBP1.540 million (FY 2014: GBP1.405 million) and a profit after taxation, including the discontinued operation, of GBP0.265 million (FY 2014: loss of GBP1.992 million) for the year ended 31 December 2015.
The increase in revenues which were largely due to good revenue growth from our Malaysia operations as detailed below, The Group recorded a profit after taxation of GBP265,000 for the period under review representing a significant improvement on last year. In addition to the growth in the Malaysian operations the main contributing factors were the gain on disposal of its subsidiary, Medilink (Beijing) TPA Pte Ltd (GBP783,000), which was tempered by an impairment loss (GBP322,000), together with the software licensing revenues from the GE Singapore project totalling GBP213,000.
The average monthly revenue per employee during the year for our Malaysia and Singapore operations was GBP3,100, an improvement of approximately 19% compared to the previous year figure of GBP2,609. We expect the monthly average revenue per employee to continue to improve as business volumes increase.
GROUP'S OPERATIONS REVIEW
Malaysia
As previously reported the acquisition of ING Malaysia by AIA is an important corporate development which we expect will create a positive impact for Medilink Malaysia in terms of larger business volumes and enhanced market position. The merged insurance entity has become the number one insurer in the country in terms of total premium size and policyholders' base. In this respect our business with AIA Malaysia, both conventional and Takaful business, grew by 13% compared to FY2014.
AIA had fully completed its merger exercise to operate under a single license in Malaysia after acquiring ING Group's local insurance operations. We have seen an increase of 150,000 members in the Medilink Malaysia portfolio.
Overall revenue from our TPA business grew by 15% to GBP748,000 in 2015 (FY2014 GBP653,000). We expect continuing growth in TPA revenue arising from both the self-insured as well as insured sector in the coming years.
Singapore
Revenues from Singapore decreased by 16% to GBP539,000 (FY 2014: GBP643,000) from the previous year while the number of healthcare providers in our network remained at 146.
PROSPECTS
Medilink will continue to provide excellent services to its customers and with our new initiatives in Malaysia and Singapore, we anticipate that the Group's prospects will continue to improve in 2016.
We will look to strengthen all areas of the organisation and maintain our position as a leading regional Third Party Administrator, Electronic Card Network Operator and an Insurance Claims system solutions provider in the Asia Pacific region with a global servicing capacity.
The Company continues to monitor its cash position, which is currently relatively constrained. Cash and cash equivalents at 31 December 2015 were GBP573,000 (31 December 2014: GBP254,000). Cost cutting measures implemented during 2014 and 2015 have assisted in improving the Company's working capital position in the period under review. The Directors will continue to explore options for supplementing the Group's cash resources, at both the Company and subsidiary level.
Certain shareholders and directors of the Company have previously provided working capital loans to the Group to finance its on-going expansion. Loans of an aggregate value of GBP678,000 are either repayable with 12 months of the date of approval of these financial statements or are not subject to a formal repayment term. The providers of the loans have informed the directors that repayment will not be sought within 12 to 18 months of the date of approval of these financial statements unless the Group has sufficient available working capital to support the making of repayments.
ACKNOWLEDGMENTS
On behalf of the board, I would like to extend our thanks to our business partners, customers, associates, healthcare providers and valued shareholders for their support throughout the year. We also wish to thank the management and staff of the entire Medilink-Global Group for their continued loyalty and commitment in discharging their duties.
Norman Lott
Chairman
27 June 2016
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARED 31 DECEMBER 2015
Note
2015 2014
Continuing operations GBP'000 GBP'000
Revenue 3 1,540 1,405
Cost of sales (1,166) (1,154)
-------- ----------
Gross profit 374 250
Other income 4 68
Goodwill impairment 10 - (1,700)
Impairment loss 12 (322) -
Gain on disposal of subsidiary 21 783 -
Administrative expenses 4 (460) (511)
Operating profit/(loss) 379 (1,893)
Finance expenses 7 (44) (38)
-------- ----------
Profit/(loss) before taxation
from continuing operations 335 (1,931)
Taxation 8 (13) -
-------- ----------
Profit/(loss) for the year
from continuing operations 322 (1,931)
Discontinued operations
Loss after tax for the year
from discontinued operations 21 (57) (61)
-------- ----------
Profit/(loss) for the year 265 (1,992)
======== ==========
Other comprehensive loss
Items that may be reclassified
subsequently to profit or
loss:
Exchange difference on translation
of foreign subsidiaries 9 (60)
-------- ----------
Total comprehensive income/(loss)
for the year attributable
to equity holders 274 (2,052)
-------- ----------
Profit / (loss) for the year
attributable to:
Owners of the company 261 (1,990)
Non-controlling interest 4 (2)
-------- ----------
265 (1,992)
Total comprehensive income/(loss)
attributable to:
Owners of the company 270 (2,049)
Non-controlling interest 4 (3)
-------- ----------
274 (2,052)
Earnings per share (pence) 20
Basic and diluted 0.21 (1.64)
Earnings per share for continuing
operations (pence)
Basic and diluted 0.26 (1.59)
The notes to the financial statements form an integral part of these financial statements.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 31 DECEMBER 2015
Note 2015 2014
ASSETS GBP'000 GBP'000
Non-current assets
Property, plant and equipment 9 35 75
Investment in associates 12 - -
Intangible assets 10 1,532 1,505
Total non-current assets 1,567 1,580
-------- --------
Current assets
Trade and other receivables 13 1,157 1,388
Cash and cash equivalents 14 573 254
-------- --------
1,730 1,642
Assets held for sale 21 - 876
-------- --------
Total current assets 1,730 2,518
-------- --------
TOTAL ASSETS 3,297 4,098
======== ========
EQUITY
Equity attributable to the
equity holders of the parent:
Share capital 19 6,074 6,074
Share premium 1,507 1,507
Reserves (7,252) (7,522)
-------- --------
Total shareholders' equity 329 59
Non-controlling interests (1) (5)
-------- --------
Total equity interest 328 54
-------- --------
Current liabilities
Term loan 18 169 161
Trade and other payables 15 2,622 2,628
Hire purchase liabilities 3 3
2,794 2,792
Liabilities directly associated
with the assets held for
sale 21 - 1,090
-------- --------
Total current liabilities 2,794 3,882
-------- --------
Non-current liabilities
Advance from a director 17 118 118
Deferred tax 16 57 44
-------- --------
Total non-current liabilities 175 162
-------- --------
TOTAL EQUITY AND LIABILITIES 3,297 4,098
======== ========
The notes to the financial statements form an integral part of these financial statements.
Approved and authorised by the Board on 27 June 2016 and signed on its behalf by:
Shia Kok Fat
Director
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARED 31 DECEMBER 2015
2015 2014
GBP'000 GBP'000
Cash flows from operating activities
Loss before taxation 335 (1,931)
Loss before taxation for discontinued
operation (57) (61)
Adjustments for:
Amortisation of intangible assets 11 20
Depreciation of property, plant
and equipment 49 61
Gain on disposal of subsidiary (783) -
Goodwill impairment - 1,700
Finance costs 27 20
------------------ --------
Cash from operating activities
before changes in working capital (401) (191)
Decrease /(increase) in inventory - (5)
Decrease /(increase) in trade and
other receivables 231 (772)
Increase / (decrease) in trade
and other payables 730 1,012
Cash flow from operations 560 44
Interest received - -
------------------ --------
Net cash flow from operations 560 44
------------------ --------
Investing activities
Purchase of intangible assets (38) (85)
Net cashflow arising from loss (180) -
of control of subsidiary
Purchase of property, plant and
equipment (24) (13)
Cash flow used in investing activities (242) (98)
------------------ --------
Financing activities
Interest paid (28) (20)
Advance from shareholders 60 27
Repayment of hire purchase liabilities - (4)
------------------ --------
Cash flow from financing activities 32 3
------------------ --------
Net increase/(decrease) in cash
and cash equivalents 350 (51)
Effect of exchange rate changes (31) 1
Cash and cash equivalents at the
beginning of the year 254 304
--------
Cash and cash equivalents at the
end of the year 573 254
================== ========
The notes to the financial statements form an integral part of these financial statements.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 31 DECEMBER 2015
Share Share Exchange Retained Total Non Controlling Total
capital Premium Reserves Earnings Interest
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------- --------- ---------- ---------- -------- ---------------- --------
Balance at
01 January
2014 6,045 1,507 5 (5,478) 2,079 (2) 2,077
Loss for the
year - - - (1,990) (1,990) (2) (1,992)
Other comprehensive
income
Exchange differences - - (59) - (59) (1) (60)
--------- --------- ---------- ---------- -------- ---------------- --------
Total comprehensive
loss for the
year - - (59) (1,990) (2,049) (3) (2,052)
--------- --------- ---------- ---------- -------- ---------------- --------
Transactions
with owners
in their capacity
as owners
Issue of shares 29 - - - 29 - 29
Balance at
31 December
2014 6,074 1,507 (54) (7,468) 59 (5) 54
--------- --------- ---------- ---------- -------- ---------------- --------
Loss for the
year - - - 261 261 4 265
Other comprehensive
income
Exchange differences - - 9 - 9 - 9
--------- --------- ---------- ---------- -------- ---------------- --------
Total comprehensive
loss for the
year - - 9 261 270 4 274
--------- --------- ---------- ---------- -------- ---------------- --------
Transfer of
foreign exchange
attributable
to the loss
of control
of subsidiary - - 122 (122) - - -
Balance at
31 December
2015 6,074 1,507 77 (7,329) 329 (1) 328
--------- --------- ---------- ---------- -------- ---------------- --------
The notes to the financial statements form an integral part of these financial statements
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARED 31 DECEMBER 2015
1. General information
The Company was incorporated in Jersey as a limited liability par value company under the laws of Jersey, with the name Medilink-Global UK Limited and with company number 99680. The Company is governed by its articles of association and the principal statute governing the Company is Jersey law. The liability of the members of the Company is limited. The Company's registered office is Queensway House, Hilgrove Street, St Helier Road, Jersey, JE1 1ES. The Company is domiciled in Jersey. The Company's principal place of business is Asia.
These financial statements are presented in Pound Sterling ("GBP") and rounded to the nearest thousand ("000"). The functional currency of the entities in the Group is the Malaysian Ringgit as that is the currency of the primary economic environment in which the Group operates. The directors have chosen to present these financial statements in Pound Sterling due to the international exposure and shareholders of the entity.
2. Accounting policies
The principal accounting policies adopted by the Group and Company in the preparation of the financial statements are set out below.
i. Basis of preparation
The financial statements of the Group and the Company have been prepared and presented in accordance with International Financial Reporting Standards as adopted by the European Union and the historical cost convention as modified by the use of fair values. The Board had reviewed the accounting policies set out in the financial statements and consider them to be the most appropriate to Group's business activities.
New standards, amendments to standards or interpretations
A number of new standards and amendments to standards and interpretations have been issued but are not yet effective and in some cases have not yet been adopted by the EU.
The directors do not expect that the adoption of these standards will have a material impact on the financial statements of the Group in future periods, except that IFRS 9 will impact both the measurement and disclosures of financial instruments and IFRS 15 may have an impact on revenue recognition and related disclosures. At this point it is not practicable for the directors to provide a reasonable estimate of the effect of IFRS 9 and IFRS 15 as their detailed review of these standards is still ongoing.
ii. Basis of consolidation
The consolidated financial statements include the financial statements of the Company and its subsidiaries made up to 31 December. Intra-group sales and profits are eliminated fully on consolidation. The results of subsidiaries acquired or disposed of during the period are dealt with in the consolidated income statement from or up to their effective dates of acquisition or disposal respectively. Uniform accounting policies are applied across the group.
Control is achieved where the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.
iii. Business combinations
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the consolidated statement of financial position, the acquiree's identifiable assets and liabilities are initially recognised at their fair values at the acquisition date except as described below in (iv). The results of acquired operations are included in the consolidated statement of comprehensive income from the date on which control is obtained.
iv. Transactions under common control
The acquisition of Medilink-Global (Asia) Pte. Ltd during the year ended 31 December 2008 was outside the scope of IFRS 3 because it was not a business combination (Medilink-Global UK Limited was a shell company at the time of the transaction) and all parties were under common control before and afterwards.
lAS 8 "Accounting policies, changes in accounting estimates and errors" requires the management to develop a relevant and reliable policy in respect of the business combination. Management has therefore chosen to apply purchase accounting rules. As a result the consideration given and the assets and liabilities acquired are recorded at their fair value. The excess of nominal value of the shares issued over the fair value of the net assets acquired is recorded as goodwill.
v. Disposal of subsidiary
When the Group ceases to have control any retained interest in the entity is remeasured to its fair value at the date when control is lost, with the change in carrying amount recognised in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss.
vi. Going concern
The directors report that after making enquiry, they have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Certain shareholders and directors of the Company have provided working capital loans to the Group to finance its on-going expansion. Loans of an aggregate value of GBP678,000 are either repayable with 12 months of the date of approval of these financial statements or are not subject to a formal repayment term. The providers of the loans have informed the directors that repayment will not be sought within 12 to 18 months of the date of approval of these financial statements unless the Group has sufficient available working capital to support the making of repayments. The directors have considered and assessed the support provided by shareholders and directors and are satisfied that they will and can, if required, continue to provide the support for the development of the Group's growth over at least the next twelve months from the date of approval of these financial statements and are therefore satisfied that the going concern basis of preparation is appropriate. In considering the appropriateness of this basis of preparation. The directors have reviewed working capital forecasts for the Group and performed sensitivity analysis thereon and the key inputs into these can be found in note 10 in the annual report and accounts. The directors believe that the increasing revenues from trading activities and the continuing support of shareholders and directors will be sufficient for the Group's purposes for a minimum of 12 months from the date of the approval of these financial statements.
vii. Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses.
The cost of an item of property, plant and equipment comprises its purchase price and any directly attributable costs of bringing the asset to its working condition and location for its intended use.
Depreciation is provided to write off the cost less accumulated impairment losses of property, plant and equipment over their estimated useful lives as set out below from the date on which they are available for use and after taking into account their estimated residual values, using the straight-line method. Where parts of an item of property, plant and equipment have different useful lives, the cost or valuation of the item is allocated on a reasonable basis and depreciated separately. The estimated useful lives of property, plant and equipment are as follows:
Computer equipment 33.3% EDC terminals 33.3% Motor vehicles 20% Furniture, fittings and renovations 33.3%
An impairment review is undertaken where there are indicators of impairment. Maintenance and repairs are charged to expenses when incurred.
viii. Inventories
Inventories are valued on a first in, first out basis at the lower of cost and net realisable value. Cost includes all expenditure incurred during the normal course of business in bringing in stocks to their present location and condition, including in the case of work-in-progress and finished goods an appropriate proportion of production overheads. Net realisable value is based on the estimated useful selling price less further costs expected to be incurred to completion and subsequent disposal.
ix. Goodwill on consolidation
Goodwill arising on the acquisition of a subsidiary or jointly controlled entity represents the excess of the cost of acquisition over the Group's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the subsidiary or jointly controlled entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less any accumulated impairment losses.
For the purpose of impairment testing, goodwill is allocated to each of the Group's cash-generating units expected to benefit from synergies of the combination. Cash-generating units to which goodwill has been allocated are tested for impairment annually or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognised for goodwill is not reversed in subsequent periods.
x. Intangible assets
Acquired intangible assets are valued at cost less accumulated amortisation. Amortisation is calculated using the straight line method. The annual rates used for this purpose are as follows:
System software 10% - 33.33% per annum Contracted customers 20% per annum
Trademark Fully impaired as the group does not continue the use of the acquired trademark
The assets residual value and useful lives are reviewed and adjusted if appropriate, at each statement of financial position date. An asset's carrying value is written down immediately to its recoverable value if the asset's carrying value is greater than its listed recoverable amount.
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the asset's recoverable amount. An asset's recoverable amount is the higher of the asset's or cash-generating unit's fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets and the asset's value in use cannot be estimated to be close to its fair value. In such cases the asset is tested for impairment as part of the cash-generating unit to which it belongs. When the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risk specific to the asset. Impairment losses of continuing operations are recognised in those expense categories consistent with the function of the impaired asset unless the asset is carried at a revalued amount (in which case the impairment is treated as a revaluation decrease).
An assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated, a previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset's recoverable amount since the last impairment loss was recognised. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior periods. Such reversal is recognised in the statement of comprehensive income unless the asset is carried at a revalued amount, in which case the reversal is treated as a revaluation increase. After such a reversal the depreciation charge is adjusted in future periods to allocate the asset's revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.
xi. Associated companies
Associated companies are all entities over which the Group has significant influence but not control, generally accompanying a shareholding of between 20 % and 50 % of the voting rights. Investments in associated companies are accounted for using the equity method of accounting and are initially recognised at cost. A company's investment in associates includes goodwill identified on acquisition, net of any accumulated impairment loss.
The Group's share of associates' post-acquisition profits or losses is recognised in the statement of comprehensive income, and its share of post-acquisition movements in reserves is recognised in reserves. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. When its share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, a company does not recognise future losses, unless it has incurred obligations or made payments on behalf of the associate.
xii. Receivables
Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost, less provision for impairment. A provision for impairment of receivables is established when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of receivables. The impairment loss is reversed through the statement of comprehensive income. A reversal of an impairment loss is measured as the difference between the asset's carrying amount and its estimated recoverable amount.
The carrying amount of the asset is reduced through the use of an allowance amount and the amount of the loss is recognised in the statement of comprehensive income. If in a subsequent period the amount of an impairment loss decreases and the decrease can be linked objectively to an event occurring after the impairment loss was recognised, the impairment loss is reversed through the statement of comprehensive income. A reversal of an impairment loss is limited to the asset's carrying amount that would have been determined had no impairment loss been recognised in prior periods.
xiii. Hire purchase
Assets financed by hire purchase arrangements which transfer substantially all the risks and rewards of ownership to the Group are capitalised as property, plant and equipment, and the corresponding obligations are treated as liabilities. The assets capitalised are depreciated in accordance with the accounting policy on property, plant and equipment. Finance charges are charged to the aggregated statement of comprehensive income over the periods of the respective agreements.
xiv. Borrowing costs
Borrowing costs are expensed to the statement of comprehensive income except where they arise from financing used on qualifying assets, where they are capitalised.
xv. Payables
Payables are stated at cost which is the fair value of the consideration to be paid in the future, whether or not billed to the Group. Trade payables are subsequently measured at amortised cost using the effective interest method and are not interest bearing.
xvi. Provisions
Provisions are recognised when the Group has a present obligation as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount can be made. Provisions are reviewed at each statement of financial position date and adjusted to reflect the current best estimate. Provisions have been made in the financial statements for benefits accruing in respect of sick leave, annual leave and long service leave.
xvii. Taxation
The tax expense in the statement of comprehensive income represents the aggregate amount of current tax and deferred tax. Current tax is the expected amount of income taxes payable in respect of the taxable profit for the period and is measured using the tax rates that have been enacted at the statement of financial position date.
Deferred tax is provided for, using the liability method, on temporary differences at the statement of financial position date between the tax bases of assets and liabilities and their carrying amounts in the financial statements. In principal, deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised for all deductible temporary differences, unused tax losses and unused tax credits to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, unused tax losses and unused tax credits can be utilised.
Deferred tax is measured at the tax rates that are expected to apply in the period when the asset is realised or the liability is settled, based on tax rates that have been enacted or substantively enacted at the statement of financial position date. Deferred tax is recognised in the statement of comprehensive income, except when it arises from a transaction which is recognised directly in equity, in which case the deferred tax is also charged or credited directly in equity.
xviii. Revenue recognition
Revenue comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the Group's activities. Revenue is shown net of service tax, returns and discounts. The Group recognises revenue when the amount of revenue can be reliably measured and it is probable that future economic benefits will flow to the entity as follows:
(a) Revenue arising from third party administration services charged to insurance companies are billed on a monthly basis so as to reflect monthly changes in membership of each scheme.
(b) Corporate clients and individual policyholders are billed annually in advance based on membership at the time of renewal. Amounts billed in advance at each statement of financial position date are carried forward to future periods as deferred revenue and recognised as revenue in the period to which the services provided relate.
(c) Service and network transaction fees are billed and recognised as revenue on a monthly basis by reference to the usage by scheme members of their electronic swipe cards. A membership fee per member per annum is charged annually in advance. Amounts billed in advance at each statement of financial position date are carried forward to future periods as deferred revenue and recognised as revenue in the period to which the services provided relate.
(d) Software licence sales are recognised when all contractual arrangements have been satisfied, typically on completion of user acceptance testing.
(e) Terminal rentals are billed and recognised on a monthly basis.
xix. Foreign currency translation
(a) Functional and presentational currency
Items included in the financial statements of each group entity are presented in the currency of the primary economic environment in which the entity operates (the "functional currency"). The functional currency of the entities in the Group is Ringgit Malaysia ("RM"). For the purpose of the consolidated financial statements, the results and financial position of each group entity are expressed in Pounds Sterling ("GBP"), for reporting in the United Kingdom, which is the company's presentational currency.
(b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rate prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period and exchange rates of the monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income.
The foreign exchange reserve represents the differences arising translation of foreign operations into the presentational currency.
(c) Group companies
The results and financial position of all the group entities (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentational currency are translated into the presentational currency as follows:
-- assets and liabilities for each Statement of Financial Position presented are translated at the closing rate at the date of that Statement of Financial Position;
-- income and expenses for each Statement of Comprehensive Income are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transactions dates, in which case income and expenses are translated at the rate on the dates of the transactions); and all resulting exchange differences are recognized as a separate component of equity.
(d) Exchange difference on translation of foreign subsidiaries
The functional currency of the Group's entities is the currency of their primary economic environment. In individual companies, transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities in foreign currencies are translated at year-end rates. Any resulting exchange differences are taken to the Income statement.
On consolidation, assets and liabilities of Group entities reported in their functional currencies are translated into British Pound, the Group's presentation currency, at year-end exchange rate. Income and expense items are translated into British Pound at the annual weighted average rates of exchange.
Differences arising from the retranslation of opening net assets of Group entities, together with differences arising from the restatement of net result for the year of Group entities, are recognised in other comprehensive income.
xx. Financial assets
Financial assets within the scope of IAS 39 are classified as either financial assets at fair value through profit and loss, loans and receivables, held-to-maturity investments, or available-for-sale financial assets, as appropriate. Financial assets are recognised in the
statement of financial position when, and only when, the Group becomes a party to the contractual provisions of the financial instrument.
Financial assets are initially recognised at fair value, plus transaction costs for all financial assets not carried at fair value through profit or loss. The Group determines the classification of its financial assets after initial recognition and, where allowed and appropriate, re-evaluates this designation at each financial year end.
All arms length purchases and sales of financial assets are recognised on the trade date i.e. the date that the Group commits to purchase the asset. Such purchases or sales are purchases or sales of financial assets that require delivery of assets within the period generally established by regulation or convention in the market place concerned.
(a) Financial assets at fair value through profit and loss
Financial assets classified as held for trading are included in the category financial assets at fair value through profit or loss. Financial assets are classified as held for trading if they are acquired for the purpose of sale in the short term. Derivative financial instruments are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on investments held for trading are recognised in the statement of comprehensive income.
The Group does not designate any financial assets not held for trading as financial assets at fair value through profit and loss.
(b) Held-to-maturity investments
Non-derivative financial assets with fixed or determinable payments and fixed maturity are classified as held-to-maturity when the Group has the positive intention and ability to hold the assets to maturity. Investments intended to be held for an undefined period are not included in this classification. Other long-term investments that are intended to be held-to-maturity, such as bonds, are subsequently measured at amortised cost using the effective interest method. This cost is computed as the amount initially recognised minus principal repayments, plus or minus the cumulative amortisation using the effective interest method of any difference between the initially recognised amount and the maturity amount and minus any reduction for impairment or uncollectibility. This calculation includes all fees and points paid or received between parties to the contract that are an integral part of the effective interest rate, transaction costs and all other premiums and discounts. For investments carried at amortised cost, gains and losses are recognised in the income statement when the investments are derecognised or impaired, as well as through the amortisation process.
(c) Loans and receivables
Non-derivative financial assets with fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Such assets are carried at amortised cost using the effective interest method. Gains and losses are recognised in the income statement when the loans and receivables are derecognised or impaired, as well as through the amortisation process.
(d) Available-for-sale financial assets
Available-for-sale financial assets are those non-derivative financial assets that are designated as available-for-sale or are not classified in any of the three preceding categories. After initial recognition, available-for-sale financial assets are measured at fair value with gains or losses being recognised in the fair value adjustment reserve until the investment is derecognised or until the investment is determined to be impaired at which time the cumulate gain or loss previously reported in equity is included in the statement of comprehensive income.
The fair value of investments that are actively traded in organised financial markets is determined by reference to the relevant stock exchange's quoted market bid prices at the close of business on the statement of financial position date. For investments where there is no active market, fair value is determined using valuation techniques. Such techniques include using recent arm's length market transactions; reference to the current market value of another instrument, which is substantially the same; discounted cash flow analysis and option pricing models.
xxi. Derecognition of financial assets and liabilities
(a) Financial assets
A financial asset (or, where applicable a part of a financial asset or part of a group of similar financial assets) is derecognised where:
The contractual rights to receive cash flows from the asset have expired;
The Group retains the contractual rights to receive cash flows from the assets, but has assumed an obligation to pay them in full without material delay to a third party under a 'pass-through' arrangement; or
The Group has transferred its rights to receive cash flows from the asset and either (a) has transferred substantially all the risks and rewards of the asset, or (b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
Where the Group has transferred its rights to receive cash flows from an asset and has neither transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the asset, the asset is recognised to the extent of the Group's continuing involvement in the asset. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay.
Where continuing involvement takes the form of a written and/or purchased option on the transferred asset, the extent of the Group's continuing involvement is the amount of the transferred asset that the Group may repurchase, except that in the case of a written put option on an asset measured at fair value, the extent of the Group's continuing involvement is limited to the lower of the fair value of the transferred asset and the option exercise price.
On derecognition of a financial asset in its entirety, the difference between the carrying amount and the sum of (a) the consideration received (including any new asset obtained less any new liability assumed) and (b) any cumulative gain or loss that has been recognised directly in equity is recognised in the statement of comprehensive income.
(b) Financial liabilities and equity instruments
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument under IFRS. An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities. The accounting policies adopted for specific financial liabilities and equity instruments are set out below.
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
Where an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such as exchange or modification, is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognised in the statement of comprehensive income.
Borrowings
Borrowings are recognised initially at fair value, net of transaction costs incurred, and subsequently measured at amortised cost using the effective interest method. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the statement of financial position date.
Trade and other payables
Trade and other payables are stated initially at their fair value and subsequently measured at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.
Equity instruments
Equity instruments issued by the Group are recorded at the proceeds received, net of direct issue costs.
xxii. Impairment of assets
(a) Financial assets
A financial asset is assessed at each reporting date to determine whether there is any objective evidence that it is impaired. A financial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset.
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount, and present value of the estimated future cash flows discounted at the original effective interest rate. An impairment loss in respect of an available-for-sale financial asset is calculated by reference to its fair value.
Individually significant financial assets are tested for impairment on an individual basis. The remaining financial assets are assessed collectively in groups that share similar credit risk characteristics.
An impairment loss is recognised in the statement of comprehensive income. Any cumulative loss in respect of an available-for-sale financial asset recognised previously in equity is transferred to the statement of comprehensive income.
An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment loss was recognised. For financial assets measured at amortised cost and available-for-sale financial assets that are debt securities, the reversal is recognised in the statement of comprehensive income. For available-for-sale financial assets that are equity securities, the reversal is recognised directly in equity.
(b) Non-financial assets
The carrying amounts of the Group's non-financial assets, other than deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated. For assets that have indefinite lives, the recoverable amount is estimated at each reporting date.
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and risk specific to the asset. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the "cash generating unit"). The goodwill acquired in a business combination, for the purpose of impairment testing, is allocated to cash-generating units that are expected to benefit from the synergies of the combination.
An impairment loss is recognised if the carrying amount of an asset or its cash generating unit exceeds its estimated recoverable amount. Impairment losses are recognised in the statement of comprehensive income. Impairment losses recognised in respect of cash generating units are allocated first to reduce the carrying amount of any goodwill allocated to the units and then to reduce the carrying amount of the other assets in the unit (or group of units) on a pro rata basis.
An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
xxiii. Cash and cash equivalents
For the purpose of the statements of cash flows, cash and cash equivalents include cash in hand, deposits, bank balances, demand deposits and other short term, highly liquid investments that are readily convertible to known amounts of cash and which are subjected to an insignificant risk of change in value.
xxiv. Share capital
Ordinary shares are recorded at nominal value and proceeds received in excess of nominal value of shares issued, if any, are accounted for as share premium. Both ordinary shares and share premium are classified as equity. Costs incurred directly to the issue of shares are accounted for as a deduction from share premium, otherwise they are charged to the statement of comprehensive income.
xxv. Events after the balance sheet date
Post period-end events that provide additional information about the Group's position are reflected in the financial statements. Post period-end events that are not adjusting events are disclosed in the notes when material.
xxvi. Contingent liabilities and contingent assets
A contingent liability is a possible obligation that arises from past events and whose existence will only be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group. It can also be a present obligation arising from past events that is not recognised because it is not probable that outflow of economic resources will be required or the amount of obligation cannot be measured reliably.
A contingent liability is not recognised but is disclosed in the notes to the accounts. When a change in the probability of an outflow occurs so that the outflow is probable, it will then be recognised as a provision. A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain events not wholly within the control of the Group. Contingent assets are not recognised but are disclosed in the notes to the accounts when an inflow of economic benefits is probable. When inflow is virtually certain, an asset is recognised.
xxvii. Pensions
The Group makes no other contributions to individual pension schemes except for the contributions to defined contribution plans, including the Employees' Provident Fund, the national defined contribution plan in Malaysia, the Central Provident Fund in Singapore and basic pension insurance in China for all the employees in the respective countries.
xxviii. Leased assets
Operating lease
Operating lease rentals are included in the determination of the operating profit or loss for the period in accordance with the contracted lease payment agreement.
xxix. Discontinued operation
A discontinued operation is a component of the Group's business that represents a separate major line of business or geographical area of operation, which has been disposed of or is held for sale, or is a subsidiary acquired exclusively with a view to resale. Classification as a discontinued operation occurs upon disposal or when the operation meets the criteria to be classified as held for sale, if earlier. When an operation is classified as a discontinued operation, the comparative statement of comprehensive income is re-presented as if the operation had been discontinued from the start of the comparative period.
xxx. Assets held for sale
Non-current assets, or disposal groups comprising assets and liabilities, are classified as held-for-sale if it is highly probable that they will be recovered primarily through sale rather than through continuing use.
Such assets, or disposal groups, are generally measured at the lower of their carrying amount and fair value less costs to sell. Any impairment loss on disposal group is allocated first to goodwill, and then to the remaining assets and liabilities on a pro rata basis, except that no loss is allocated to inventories, financial assets or deferred tax assets, which continue to be measured in accordance with the Group's other accounting policies. Impairment losses on initial classification held-for-sale and subsequent gains and losses on re-measurement are recognized in profit or loss.
Once classified as held for sale, intangible assets and property, plant and machinery are no longer amortised or depreciated, and any equity accounted investee is no longer equity accounted.
xxxi. Employee benefits
(a) Short term employee benefits
Wages, salaries, annual leave and sick leave, social security contributions, bonuses and non-monetary benefits are accrued in the period in which the associated services are rendered by the employees.
(b) Post-employment benefits
Contributions to defined contribution plans, including the Employees' Provident Fund, the national defined contribution plan in Malaysia, the Central Provident Fund in Singapore and basic pension insurance in China are charged to the statement of comprehensive income in the period to which they are related. A defined contribution plan is a pension plan under which the Group pays fixed contributions and will have no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits relating to employee service in the current or prior financial periods. Once the contributions have been paid, the Group has no further payment obligations.
xxxii. Significant accounting estimates and judgements
Estimates, assumptions and judgements concerning the future are made in the preparation of the financial statements. They affect the application of the Group's accounting policies, reported amounts of assets, liabilities, income and expenses and disclosures made. They are assessed on an ongoing basis and are based on experience and relevant factors, including expectations of future events that are believed to be reasonable under the circumstances.
Key sources of estimation uncertainty
The key assumptions concerning the future and other key sources of estimation uncertainty at the statement of financial position date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial period are as stated below:
(a) Carrying value of goodwill - Group
The Group follows the guidance of IAS 36 in determining whether goodwill is impaired. This determination requires the assumption made regarding the duration and extent to which the fair value of the goodwill is less than its costs and the financial health of and near-term business outlook for the goodwill.
Management's assessment for impairment of goodwill is based on the estimation of value in use of the cash-generating unit ("CGU") by forecasting the expected future cash flows for a period of up to five years, using a suitable discount rate in order to calculate the present value of those cash flows.
Impairment testing inherently involved a number of judgmental areas: the preparation of cash flow forecasts for periods that are beyond the normal requirements of management reporting; the assessment of the discount rate appropriate to the business; estimation of the fair value of cash-generating units; and the valuation of the separable assets of each business whose goodwill is being reviewed.
The methods, assumptions, sensitivity and possible outcomes in relation to the calculation of the estimates are detailed in note 10.
(b) Carrying value of investment and long term loan in subsidiaries - Company
The Company follows the guidance of IAS 36 in determining whether investment in and long term loans to subsidiaries are impaired. This determination requires the assumption made regarding the duration and extent to which the fair value of an investment or a financial asset is less than its costs and the financial health of and near-term business outlook for the investment or financial asset. The Company has a sole direct investment in Medilink-Global (Asia) Pte Ltd, which then owns the other entities in the group.
Management's assessment for impairment of investment and long term loans in subsidiaries is based on the estimation of value in use of the cash-generating unit ("CGU") by forecasting the expected future cash flows for a period of up to five years, using a suitable discount rate in order to calculate the present value of those cash flows.
Impairment testing inherently involved a number of judgmental areas: the preparation of cash flow forecasts for periods that are beyond the normal requirements of management reporting; the assessment of the discount rate appropriate to the business; estimation of the fair value of cash-generating units; and the valuation of the separable assets of each business in the sub-group.
As Medilink-Global (Asia) Pte Ltd forms an individual sub-group, the Company has assessed the recoverability of the investment and long term loans on the underlying value of this sub-group. In this respect, the methods, assumptions, sensitivity and possible outcomes in relation to the calculation of the estimates are detailed in note 10 as they are the same as those used on the impairment review of the carrying value of goodwill.
3. Business segments
The Group applies IFRS 8 Operating Segments. Per IFRS 8 operating segments are based on internal reports about components of the group, which are regularly reviewed and used by the Board of Directors being the Chief Operating Decision Maker ("CODM") for strategic decision making and resource allocation, in order to allocate resources to the segment and to assess its performance. The Group's reportable operating segments are as follows:
i) Third party administrator
ii) Software licensing
The CODM monitors the operating results of each segment for the purpose of performance assessments and making decisions on resource allocation. The management has organised the entity based on differences in products and services. Third party administrator segment is derived from aggregating Malaysia and Singapore entity while software licensing segment represent a single entity from Malaysia. Performance is based on external and internal revenue generations and profit before tax, which the CODM believes are the most relevant in evaluating the results relative to other entities in the industry. Segment assets and liabilities are presented inclusive of inter-segment balances, as inter-segment pricing. Information regarding each of the operations of each reportable segment is included below.
Third Software Consolidation Total
2015 party licensing
administrator
GBP'000 GBP'000 GBP'000 GBP'000
External revenue 1,290 250 - 1,540
Internal revenue 133 79 (212) -
---------------- ---------------- -------------- --------
Total revenue 1,423 329 (212) 1,540
---------------- ---------------- -------------- --------
Interest expenses 44 - - 44
Depreciation
and
amortisation 59 1 - 60
Impairment
loss - - (322) (322)
Earnings before
tax (EBT) 94 (13) 254 335
Assets 4,404 152 (1,259) 3,297
Liabilities (5,616) (284) 2,931 (2,969)
---------------- ---------------- -------------- --------
The assets of third party administrator are including the goodwill on consolidation of GBP1,257,000 (2014: GBP1,257,000)
Revenues from a single customer amounted to GBP280,142 (2014: GBP263,249) arising from sales by third party administrator segment.
Third Software Consolidation Total
2014 party licensing
administrator
GBP'000 GBP'000 GBP'000 GBP'000
External revenue 1,296 109 - 1,405
Internal revenue 133 90 (223) -
---------------- ----------- -------------- --------
Total revenue 1,429 199 (223) 1,405
---------------- ----------- -------------- --------
Interest expenses 38 - - 38
Depreciation
and
amortisation 80 1 - 81
Impairment loss (1,700) - - (1,700)
Earnings before
tax (EBT) (2,097) (8) 174 (1,931)
Assets 4,654 185 (741) 4,098
Liabilities (6,810) (326) 3,092 (4,044)
---------------- ----------- -------------- --------
The geographical split of revenue and non-current assets arises as follows:
2015 Jersey Singapore Malaysia Discontinued Total
Operation
(China)
---------------- -------- ---------- --------- ------------- --------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------- -------- ---------- --------- ------------- --------
Revenue 3 539 998 - 1,540
---------------- -------- ---------- --------- ------------- --------
Intangible
assets - - 194 - 194
---------------- -------- ---------- --------- ------------- --------
Goodwill 1,338 - - - 1,338
----------------
PPE - - 35 - 35
---------------- ------------- --------
2014 Jersey Singapore Malaysia Discontinued Total
Operation
(China)
------------------------ -------- ---------- --------- ------------- --------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------ -------- ---------- --------- ------------- --------
Revenue (restated) - 643 762 - 1,405
------------------------ -------- ---------- --------- ------------- --------
Intangible
assets - - 167 - 167
------------------------ -------- ---------- --------- ------------- --------
Goodwill 1,338 - - - 1,338
------------------------
PPE - - 75 - 75
------------------------ -------- ---------- --------- ------------- --------
The geographical split of revenue reflects the continued operation same as its comparative period.
4. Loss from operations
Loss from operation has been arrived at after charging:
2015 2014
GBP'000 GBP'000
Unrealised loss/(gain) on
exchange difference (33) 65
Depreciation 49 61
Amortisation of intangible
assets 11 20
Auditor remuneration - audit
of the company accounts 21 21
Impairment of goodwill - 1,700
Operating lease payment 20 184
======== ========
5. Directors emoluments
2015 2014
GBP'000 GBP'000
Directors' remuneration 30 30
Directors' fees 28 28
-------- --------
58 58
======== ========
All the executive directors have a fixed base fee or salary and participate in discretionary bonus arrangement, according to the performance as determined by the Remuneration Committee.
Details of the directors' emoluments are set out below.
2015 2014
GBP'000 GBP'000
Executive
Shia Kok Fat 46 46
Non-executive
Norman Lott 12 12
Chen Shien Yee - -
Total 58 58
======== ========
6. Staff costs
2015 2014
GBP'000 GBP'000
Wages and salaries 245 686
Defined contribution plans 21 140
-------- --------
266 826
======== ========
7. Finance expenses
2015 2014
GBP'000 GBP'000
Finance cost bank borrowing
and hire purchase 26 20
Other interest 18 18
-------- --------
44 38
======== ========
8. Taxation
2015 2014
GBP'000 GBP'000
Current tax charge - -
Deferred tax 13 -
------------ --------
13 -
============ ========
Factors affecting tax charge:
Loss before tax 335 (1,931)
Tax at the corporate rate 23.5%
(2014:23.5%) 79 (454)
Tax effects of:
- Non taxable income (58) -
* Non deductible expenses 5 400
- Tax loss not recognised (13) 54
- -
* Difference in overseas tax rate
13 -
============ ========
The applicable tax of the Group is derived from the consolidation of all Group companies applicable tax band on their domestic tax rates.
9. Property, plant and equipment
GROUP 2015
Computer, Furniture,
office EDC terminals fitting Motor Total
equipment & renovation vehicles
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
As at 1 January
2015 302 352 76 17 747
Exchange differences (48) (49) (12) (2) (111)
Additions 7 - 17 - 24
Disposal - - - - -
----------- ---------------- -------------- ----------- --------
As at 31 December
2015 261 303 81 15 660
=========== ================ ============== =========== ========
Accumulated
depreciation
As at 1 January
2015 245 341 76 10 672
Exchange differences (38) (49) (8) (1) (96)
Depreciation 37 1 8 3 49
Disposal - - - - -
As at 31 December
2015 244 293 76 12 625
=========== ================ ============== =========== ========
Net book value 17 10 5 3 35
=========== ================ ============== =========== ========
A motor vehicle with the carrying amount of GBP3,000 (2014: GBP7,000) was acquired by hire purchase and is pledged as security for liabilities.
GROUP 2014
Computer, Furniture,
office EDC terminals fitting Motor Total
equipment & renovation vehicles
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
As at 1 January
2014 434 440 93 33 1,000
Additions 12 1 - - 13
Assets held
for sale (144) (89) (17) (16) (266)
As at 31 December
2014 302 352 76 17 747
=========== ================ ============== =========== ========
Accumulated
depreciation
As at 1 January
2014 320 404 91 22 837
Depreciation 49 4 4 4 61
Assets held
for sale (124) (67) (19) (16) (226)
As at 31 December
2014 245 341 76 10 672
=========== ================ ============== =========== ========
Net book value 57 11 - 7 75
=========== ================ ============== =========== ========
10. Intangible assets
2015 Intellectual Property
Goodwill Trademark System Contracted
software customers Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
As at 1 January
2015 4,138 2 433 213 4,786
Additions 38 38
As at 31 December
2015 4,138 2 471 213 4,824
========= ========== ========== =========== ========
Amortisation
As at 1 January
2015 2,800 2 266 213 3281
Amortisation - - 11 - 11
Provision for - - - - -
impairment
--------- ---------- ---------- ----------- --------
As at 31 December
2015 2,800 2 277 213 3,292
========= ========== ========== =========== ========
Net book value
As at 31 December
2015 1,338 - 194 - 1,532
========= ========== ========== =========== ========
2014 Intellectual Property
Goodwill Trademark System Contracted
software customers Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
As at 1 January
2014 4,138 2 348 213 4,701
Additions - - 85 - 85
As at 31 December
2014 4,138 2 433 213 4,786
========= ========== ========== =========== ========
Amortisation
As at 1 January
2014 1,100 2 246 213 1,561
Amortisation - - 20 - 20
Provision for
impairment 1,700 - - - 1,700
--------- ---------- ---------- ----------- --------
As at 31 December
2014 2,800 2 266 213 3,281
========= ========== ========== =========== ========
Net book value
As at 31 December
2014 1,338 - 167 - 1,505
========= ========== ========== =========== ========
The amortisation recognised in respect of intellectual property has been included in the line item, administrative expenses in the consolidated statement of income.
Description of intangible assets
Goodwill arising on the acquisition of the subsidiaries represents the excess of the cost of acquisition over the Group's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the subsidiaries recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less any accumulated impairment losses. The carrying value of goodwill is allocated to the respective segments as follows: -
2015 2014
GBP'000 GBP'000
Third party administrator 1,257 1,257
Software licensing 81 81
--------- ---------
Total carrying value of goodwill 1,338 1,338
========= =========
System software comprises Electronics Claims Clearance System and Loyalty Programme software. The system software is initially recognised based on the cost that would be incurred in re-creating the asset and subsequently amortised based on straight-line method over a period of three years. Contracted customers are the existing customers of the acquired subsidiaries. The contracted customers are initially recognised based on the estimated net present value of the service contracts entered into between the customers and subsidiaries acquired and is subsequently amortised based on straight-line method over a period of five years. The recoverable amount of cash generating unit is determined based on value in use calculation as set out below.
The goodwill and other intangible assets are reviewed for impairment annually or more frequently if events or changes in circumstances indicate that the assets might be impaired. The 2015 review was undertaken in the first quarter of year 2016 and the impairment of goodwill amounting to GBPnil (2014: GBP1,700,000) is recognised in the income statement. The impairment provision was to reflect the loss control of the operating segment in China as well as the ongoing economic uncertainty impact on the group's operation.
Management have approved the forecast for 2016 and have prepared additional projections based on the 2015 numbers for the next five years. This was used as the basis for determining the recoverable amount of each CGU.
In conducting the review we used a market beta of 4 and a growth rate as below:
The growth rate ranges from 5% to 54% per year with an average of 34% with a peak in growth due to new prospect for technologies and solutions from overseas over the next 2-3 years. The discount rate applied had been set at 25%.
Management are satisfied that there are no reasonably possible changes in key assumptions, which would cause the recoverable amount of any of our GGUs to be below their carrying amount.
The key assumptions used in the forecast are as follows:
Assumption
(%)
Growth Rate 5% - 50%
Discount Rate 25%
Sensitivity analysis
A sensitivity analysis has been carried out for each CGU. The results of the analysis can be summarised as follow:
If the estimated growth rate to forecast the revenue had been 10 percentage point lower than the basis assumption, total recoverable amount would be 20% lower.
If the estimated discount rate used for the Group's discount cash flow had been one percentage point higher than the starting assumption of 25%, total recoverable amount would be 2% lower.
These calculations are hypothetical and should not be viewed as an indication that these figures are any more or less likely to be changed. The sensitivity analysis should therefore be interpreted with caution.
11. Investments
2015 2014
Company GBP'000 GBP'000
Cost
Balance as at 1 January 4,500 4,500
Additions - -
--------- ---------
Balance as at 31 December 4,500 4,500
========= =========
Impairment
Balance as at 1 January 3,000 1,450
Impairment loss recognised - 1,550
--------- ---------
Balance as at 31 December 3,000 3,000
--------- ---------
Net book value as at 31 December 1,500 1,500
========= =========
Details of the subsidiaries:
Name of Country Principal activities 2015 2014
subsidiaries of incorporation
% of ownership % of ownership
interest interest
held held
Direct Indirect Direct Indirect
Investment holding
and provision
Medilink-Global of third party
(Asia) Pte administrator
Ltd Singapore services 100% - 100% -
Medilink Provision of
(Beijing) People third party
TPA Services Republic administrator
Co., Ltd of China services - 49% - 100
Provision of
MedilinkGlobal third party
(Malaysia) administrator
Sdn Bhd Malaysia services - 100% - 100
Provision of
project management,
facilities management
and provision
of system integration
services to
the third party
Datalink administration
Technologies and insurance
Sdn Bhd Malaysia companies - 100% - 100
Provision of
Medilink-Global third party
TPA Pte administrator
Ltd Singapore services - 70% - 70
Medilink-Global
(HK) Ltd Hong Kong Dormant - 100% - 100
Trade investments
Name of Country Principal activities 2015 2014
Company of incorporation
% held % held
Medilink Provision of third
(Thailand) party administrator
Co Ltd Thailand services 19 19
-------- --------
The forecast assumptions and sensitivity analysis for the impairment review are included in Note 10.
12. Investment in associate
Loan to
Investment associates Total
GBP'000 GBP'000 GBP'000
Cost
Balance as at 1 January - - -
2015
Reclassified long term
receivables - 322 322
Transfer from investment
in subsidiaries 650 - 650
------------- ------------ --------
Balance as at 31 December
2015 650 322 972
============= ============ ========
Impairment
Balance as at 1 January
2015 - - -
Impairment loss recognized - (322) (322)
Transfer from investment
in subsidiaries (650) - (650)
------------- ------------ --------
Balance as at 31 December (650) (322) (972)
------------- ------------ --------
Net book value as at
31 December 2015 - - -
============= ============ ========
On 10 July 2015, Medilink (Beijing) TPA Services Co., Ltd became an indirect held associate undertakings (see Note 21).
13. Trade and other receivables
Group
2015 2014
GBP'000 GBP'000
Current assets
Trade and other receivables 1,157 1,388
Less: Provision of Impairment - -
Loss
1,157 1,388
======== ========
Company
2015 2014
GBP'000 GBP'000
Non-current asset
Other receivable -
Amount owed by Group undertakings 2,237 2,487
Less: Provision against amounts
owed by Group undertakings (2,237) (2,487)
- -
========= =========
As at 31 December 2015, trade and other receivables of GBP822,000 (2014: GBP904,000) were past due but not impaired. It is management's belief that these debts will be fully repaid by reference to no default experience to date. In determining the recoverability of trade and other receivables, the Group considers any change in the credit quality of the trade receivables from the date credit was initially granted up to the reporting date.
Gross Impairment Gross Impairment
2015 2015 2014 2014
GBP'000 GBP'000 GBP'000 GBP'000
Current 335 - 484 -
31 - 60 days 121 127
61 - 90 days 50 - 13 -
More than 90
days 651 - 764 -
--------- --------------------- --------- ---------------------
1,157 - 1,388 -
========= ===================== ========= =====================
The carrying amounts of the Group's trade and other receivables are denominated in the following currencies:
2015 2014
GBP'000 GBP'000
Malaysia Ringgit 1,005 1,284
Singapore Dollar 141 94
Great Britain Pound Sterling 11 10
1,157 1,388
======== ==========
Financial asset
The Group's financial assets by each financial instrument category are as follows:-
2015 2014
GBP'000 GBP'000
Trade receivables 970 1,318
Amount due from related company 110 -
Other receivables 77 70
Cash and cash equivalents 573 254
----------------------- --------------------
Total 1,730 1,642
======================= ====================
14. Cash and cash equivalents
Group
2015 2014
GBP'000 GBP'000
Cash and bank balance 573 254
573 254
======== ========
Company
2015 2014
GBP'000 GBP'000
Cash and bank balance 4 1
-------- --------
4 1
======== ========
15. Trade and other payables
Group
2015 2014
GBP'000 GBP'000
Trade payables 1,383 1,174
Other payables 628 913
Amount owed to a shareholder 561 501
Amount owed to directors 50 40
2,622 2,628
======== ========
Company
2015 2014
GBP'000 GBP'000
Other payables 823 842
823 842
======== ========
The carrying amount of trade and other payables approximates to their fair value.
It is the Group's policy to pay suppliers in accordance with the terms of business agreed with them. The number of days of trade purchases outstanding for the Group at the year end was 90 days (2014: 90 days).
The carrying amounts of the Group's trade and other payables are denominated in the following currencies:
2015 2014
GBP'000 GBP'000
Malaysia Ringgit 1,662 1,843
Singapore Dollar 154 106
Great Britain Pound Sterling 805 678
Hong Kong Dollar 1 1
2,622 2,628
======== ========
Financial liabilities
The group's financial liabilities by each financial instrument category are as follows:-
2015 2014
Amortised cost GBP'000 GBP'000
Trade and other payables 2,011 2,087
Amount owed to director 50 40
Amount owed to a shareholder 561 501
Finance lease 3 3
-------- --------
Total 2,625 2,631
======== ========
Gross maturity analysis of the financial liabilities is as follows:
2015 2014
Non derivatives GBP'000 GBP'000
Within 1 year 2,475 2,090
Later than 1 year not later
than 5 years 150 541
Greater than 5 years - -
-------- --------
Total 2,625 2,631
-------- --------
16. Deferred taxation
Movements in deferred tax liability for the Group during the year are as follows:
2015 2014
GBP'000 GBP'000
Balance as at 1 January 44 44
Movement in deferred tax 13 -
-------- --------
Balance as at 31 December 57 44
======== ========
Deferred tax asset of GBP141,000 (2014: GBP138,000) arising from the unused tax losses has not been recognised and there is no expiry period for the said unrecognised deferred tax assets.
17. Advance from a director
Group
2015 2014
GBP'000 GBP'000
Advance from a director 118 118
118 118
======== ========
Company
2015 2014
GBP'000 GBP'000
Advance from a director 118 118
118 118
======== ========
The terms and conditions of the advance are as follows:-
i) It carries interest at 6% per annum; 18. Term loan
Group
2015 2014
GBP'000 GBP'000
Borrowing from financial
institution 169 161
169 161
======== ========
The terms and conditions of term loans are as below:-
(i) It carries interest at 13% per annum;
(ii) The maturity of principal on 15 October 2016. The term loan shall auto renew for another one (1) year, on similar terms and conditions as stated herein or shall be mutually agreed in writing between both parties
19. Share capital
The Company has one class of ordinary share capital which carries no rights to fixed income, any preferences or restrictions.
2015 2014
GBP'000 GBP'000
Ordinary shares issued and
fully paid
At 1 January 6,074 6,045
Additions - 29
-------- --------
At 31 December 6,074 6,074
-------- --------
As at 31 December 2015, the total issued share capital were 121,492,003 ordinary shares.
20. Earnings per share
Basic earnings per share is calculated by dividing the earning attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the period. The diluted earning per share was not applicable as there were no dilutive potential ordinary shares outstanding at the end of reporting period.
2015 2014
Profit/(loss) after taxation
attributable to owners of the
company (GBP'000)
* Continued operation 322 (1,931)
* Discontinued operation (57) (61)
------------ ------------
265 (1,992)
------------ ------------
Basic weighted average shares
in issue 121,492,003 121,091,163
Basic earning/(loss) per share
based on issued share capital
as at 31 December (pence) 0.21 (1.64)
------------ ------------
21. Medilink (Beijing) TPA Services Co Limited ("Medilink China")
On 1 August 2014, the Group publicly announced the divestment of 51% interest in Medilink (Beijing) TPA Services Co Limited ("Medilink China"), a wholly owned subsidiary, to Selfdoctor (Beijing) Technology Co Limited ("Selfdoctor") for a nominal consideration of RMB 10.00 (approximately GBP1.00) (the "Divestment"). The Group retains a 49% interest in Medilink China.
On 10 July 2015, the divestment completed when the transfer of ownership actually took place. At 31 December 2014, Medilink China was classified as a disposal group held for sale and as discontinued operations.
Details of the carrying value of identifiable assets and liabilities disposed of and sales consideration is, as follow:
2015
GBP'000
Consideration -
Investment retained in Medilink
China at fair value -
Net liabilities disposed of (see
below) 783
Gain on disposal 783
========
The business of Medilink China represents the entirety of the Group's operating segment in China. With Medilink China being classified as discontinued operations, the China operating segment is no longer presented as an operating segment. The results of Medilink China for the year are presented below:
2015 2014
GBP'000 GBP'000
Revenue 407 886
Expenses (462) (944)
Operating income - 1
Finance costs (2) (4)
Loss before tax from discontinued
operations (57) (61)
Taxation - -
Loss for the year from discontinued
operations (57) (61)
The major classes of assets and liabilities of Medilink China classified as assets held for sale as at 10 July 2015 and 31 December 2014 are, as follow:
2015 2014
GBP'000 GBP'000
Property, plant and equipment 35 46
Trade and other receivables 800 787
Cash and cash equivalents 180 43
Assets held for sale 1,015 876
Trade and other payables 1,588 889
HP creditors - 1
Loan from a director 210 200
Liabilities directly associated
with assets held for sale 1,798 1,090
Net liabilities directly associated
with disposal group 214
Net liabilities disposed of 783
The net cash flows incurred by Medilink China are, as follow:
2015 2014
GBP'000 GBP'000
Operating 323 329
Investing (34) (34)
Financing (246) (256)
Net cash inflow/(outflow) 43 (39)
-------- --------
2015 2014
Loss per share from discontinued
operations
Basic loss per shares (pence) 0.05 0.05
-------- --------
22. Financial instruments
Capital management
The Group's objectives when managing capital are to safeguard the Group's ability to continue as a going concern in order to provide returns for shareholders, benefits for other stakeholders and to maintain optimal capital structure to reduce the cost of capital. Management considers, as part of its capital, the financial sources of funding from shareholders and third parties. Our key process for managing capital is regular Board reviews of our capital structure and needs.
The Group's financial instruments, which are recognised in the statement of financial position, comprise cash and cash equivalents, receivables and payables and ordinary shares. The accounting policies and methods adopted, including the basis of measurement applied are disclosed above, where relevant. The information about the extent and nature of these recognised financial instruments, including significant terms and conditions that may affect the amount, timing and certainty of future cash flows are disclosed in the respective notes above, where applicable.
The Group does not generally enter into derivative transactions (such as interest rate swaps and forward foreign currency contracts) and it is, and has been throughout the year, the Group's policy that no trading in financial instruments shall be undertaken.
There were no financial instruments not recognised in the statement of financial position.
Fair values
Management assessed that the fair values of cash and short-term deposits, trade receivables, trade payables, bank overdrafts and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
Fair value hierarchy
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments which are measured at fair value by valuation technique:
Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities
Level 2: Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly;
Level 3: Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data
Set out below is a comparison by class of the carrying amounts and fair value of the Group's financial
instruments, other than those whose carrying amounts are a reasonable approximation of fair value:
2015 2014
Type GBP'000 Type GBP'000
Carrying value
Financial assets
Level Level
Intangible assets 3 1,338 3 1,338
Fair value
Financial assets
Level Level
Intangible assets 3 1,338 3 1,338
The Group's activities expose it to a variety of financial risks: currency risk, credit risk, liquidity risk and cash flow interest-rate risk. These risks are limited by the Group's financial management policies and practices as described below:
(a) Credit risks
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Group's receivables from customers and investment securities.
The Group has credit risk management policies in place and exposure to credit risk is monitored on an ongoing basis. Management generally adopts conservative strategies and tight control on credit policy. The Group has limited the amount of credit exposure to customers.
The average credit period on sales of services is 120 days. No interest is charged on the trade receivables.
(a) Credit risks (continued)
Before accepting any new customer, the Group will check the credit worthiness of any new customers.
The credit risk on cash and cash equivalent is limited because the counterparties are banks with high credit ratings recognised by international credit rating agencies.
The maximum exposure to credit risk at the reporting date is the fair value of trade receivables of GBP970,000 (2014: GBP1,318,000) and other receivables of GBP187,000 (2014: GBP70,000). The Group does not hold any collateral as security.
(b) Liquidity risks
The principal risk to the Group is liquidity, which arises from the Group's management of working capital. It is a risk that the Group will encounter difficulty in meeting its financial obligations as they fall due. This aspect is kept under review by the directors and in this respect management carries out rolling 12 month cash flow projections on a monthly basis as well as information regarding cash balances. It is the Group's policy as regards liquidity to ensure sufficient cash resources are maintained to meet short-term liabilities. All long term financial liabilities at the year-end are due in year 2017.
(c) Foreign currency exchange risks
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of the changes in foreign exchange rates. The Group's exposure to the risk of changes in foreign exchange rates relates primarily to the Group's operating activities (when revenue or expense is denominated in a foreign currency) and the Group's net investments in foreign subsidiaries.
The Group does not hedge its foreign currencies. Transactions with customers and vendors are mainly denominated in Malaysia Ringgit, Singapore Dollars, US Dollars and Chinese Yuan Renminbi. The Group has bank accounts in Malaysia Ringgit, Singapore Dollar, US Dollars and Chinese Yuan Renminbi to mitigate against the exchange risks.
The sensitivity analyses in the table below details the impact of changes in foreign exchange rates on the group's post-tax profit for the year ended 31 December 2015 and 31 December 2014.
(c) Foreign currency exchange risks (continued)
In each case, it is assumed that the named currency is strengthening or weakening against all other currencies, while all the other currencies remain constant. Results are shown for all currencies where the impact on group post tax profit. If the GBP weakened or strengthen by 10% against Malaysia Ringgit, with all other variables in each case remaining constant, then:
Impact on group
post-tax profit
- gain/(losses)
Strengthening Weakening
GBP'000 GBP'000
2015
Singapore Dollars 201 (246)
Malaysia Ringgit 15 (18)
2014
Singapore Dollars 164 (200)
Malaysia Ringgit 25 (31)
(d) Cash flow and fair value interest rate risks
The Group's primary interest rate risk relates to interest bearing debts. Investments in financial assets are mainly short term in nature and are not held for speculative purposes but are placed in fixed deposits.
The Group manages its interest rate exposure by maintaining a fixed rate borrowing to mitigate the risk associated to interest rate fluctuation.
At the reporting date the interest rate profile of the Group's interest-bearing financial instruments were as follows:
2015 2014
Fixed rate instruments - financial GBP'000 GBP'000
liabilities
* Hire purchase creditors 3 4
* Term loan 169 161
* Advance from director 100 300
-------- --------
Carrying value 272 465
======== ========
23. Related party transactions
Related party transactions during the year were as follow:
2015 2014
GBP'000 GBP'000
Amount due from:
Adviser fee payable to shareholders 50 40
Loan from a shareholder 561 501
Advance from a director 100 300
Transaction with director
Interest on advance from a
director (note 17) 18 18
The term of the loan from a shareholder is interest free and with no fixed term of repayment. The loan is secured against the corporate guarantee issued by the Company.
As at balance sheet, the amount due to the director, excluding the term loan, was approximately GBP50,000 (2014: GBP40,000) relating to expenses paid on behalf by the directors. The advance from a director, originally provided to the Company in March 2012, amounts to GBP300,000 of which GBP200,000 is owed by Medilink China, the associate undertaking of the Group.
As at 31 December 2015, the amount due from Medilink China was approximately GBP110,000.
Details of the remunerations of the directors (who are considered to be the key management of the Group) are as follows:
2015 Short term
employment Share-based
benefits payment Total
GBP'000 GBP'000 GBP'000
Executive directors 44 - 44
Non-executive
directors 12 - 12
Senior management
staff 31 - 31
============ ============== ========
2014 Short term
employment Share-based
benefits payment Total
GBP'000 GBP'000 GBP'000
Executive directors 46 - 46
Non-executive directors 12 - 12
Senior management
staff 31 - 31
============ ============== ========
24. Control
The controlling parties of the Group as at 31 December 2015 were Mr. Shia Kok Fat and Heah Zhong Tak. Mr. Shia Kok Fat is a Malaysian and a significant shareholder and director of the Company. Mr Heah Zhong Tak is a Malaysian and a significant shareholder.
25. Commitments
There are no other significant capital commitments contracted for but not provided.
26. Operating leases
The Group's future minimum lease payments under non-cancellable operating leases are as follows:
Land and buildings
2015 2014
GBP'000 GBP'000
Leases which expire:
Not later than one year 20 137
Later than one year and
not later than five years 17 43
========== =========
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UBSORNUANUAR
(END) Dow Jones Newswires
June 27, 2016 09:53 ET (13:53 GMT)
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