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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Mnc Strategic | LSE:MNCS | London | Ordinary Share | GB00BNGXS216 | ORD 0.1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 250.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From May 2019 to May 2024
TIDMLZYE
RNS Number : 0953W
LZYE Group PLC
20 December 2013
LZYE Group Plc
("LZYE" or the "Company")
Half YearResults for the six months ended 30 September 2013
LZYE Group Plc (AIM: LZYE), the AIM listed club-based provider of children's educational programmes, is pleased to announce its unaudited results for the six months ended 30 September 2013.
At present, the majority of LZYE's business is transacted in Hong Kong Dollars (HKD) and therefore Group figures are presented in that currency (HKD12.52 to GBP1.00 on 30 September 2013).
Highlights
l Revenue for the period down by 49.1% to HKD5.09 million (2012: HKD10.01 million).
l Loss after tax decreased by 55.5% to HKD11.50 million (2012: loss of HKD25.81 million).
l Adjusted* loss after tax decreased by 14.4% to HKD11.50 million (2012: loss of HKD13.43 million).
l 2-year convertible loan note created to raise up to GBP3 million, of which GBP200,000 has been issued todate.
l New substantial shareholder Flaconwood - a wholly owned subsidiary of a Hong Kong listed company, CIL Holdings Limited.
l Strategic Alliance Agreement signed on 27 September 2013 to develop and operate 10 LZYE clubs in the city of Daqing, China.
* for costs relating to preparation for AIM and Admission Costs HKD Nil (2012: HKD12.38 million).
Overview
The half year ended 30 September 2013 has been a challenging period for the LZYE. The revenue decreased by approximately a half compared to the same period in 2012, whist losses (as adjusted for costs relating to the preparation for AIM and Admission) were reduced by 14.4%. During the period, the Board composition has changed with Jack Law resigning as a director. Dr William Lo also resigned as a director after the period end. We would like to take this opportunity to thank our dedicated partners, associates and staff members for supporting LZYE.
Trading
Sales, which include course fees, membership fees and management fees, amounted to HKD5.09 million for 2013 (2012: HKD10.01 million). The course fee income represents the net amount received from the provision of educational services such as lessons, seminars and events. The management fees represented the net amount received from the provision of management services to education centres.
The decrease in income of around HK$5.09million was predominately due to the closure of our North Point centre at the end of December 2012 - the income of North Point centre was around HK$5.01 in the same period in 2012. The closure was an effective management decision as the reduction in income was compensated by the savings onmonthly lease and salary payments of around HKD900,000.
The substantial decrease in loss by HKD14.31 million to HKD11.50 million (2012: HK25.81 million) was mainly attributable to IPO costs included in 2012 of HKD10.14 million, decrease of employee benefits expenses of HKD2.75 million as a result of restructuring and savings of operating lease payments of HKD3.44 million due to the closure of North Point Centre at the end of 2012. Other operating expenses were also slightly decreased compared to 2012.
The directors of the LZYE are satisfied with the progress of the operational restructuring and a second stage of restructuring, which mainly focus on the quality of programmes and resources allocation, will commence in near future.
Outlook - China Expansion
Whilst the Company's new clubs and centres in China have had a small impact on the results for the period under review, we remain committed to the next stage of our expansion plans in China. LZYE is looking for additional co-operative and M&A opportunities to further develop in the early education industry in China. As set out in the announcement of 18 December 2013, LZYE is in early stage discussions with a Chinese company which could result in a strategic alliance to develop its business in China and a placing of new shares with the strategic partner for cash to fund the working capital requirements of the Company.
Commenting on these results Michelle Lai stated
"The period ended 30 September 2013 has been challenging for the LZYE. Whilst a loss has been recorded during the first stage of the restructuring of the operation, we believe the second stage of restructuring will enable the Company to further reduce its operation costs.
We have moved into lucrative market in mainland China with 10 co-operative learning centres located in Nantong, Shanghai, Ningbo, Shenyang, Hangzhou and Xiamen in the last year and we will not slow down this expansion in Mainland China. Our team continues to assess and evaluate opportunities in the best interests of LZYE."
For further information:
LZYE Group Plc
Tel: +44(0)20 7653 9850
Dominic Yeung, Chairman
Michelle Lai, Chief Executive
Zeus Capital (NOMAD and Broker)
Tel: +44 (0)161 831 1512
Ross Andrews, Andrew Jones
Newgate Threadneedle
Tel: +44 (0)20 7653 9850
Graham Herring/Alex White/Heather Armstrong
LZYE Group Plc
Consolidated Comprehensive Income Statement
For the six months to 30 September 2013
Hot Features
Premium
Notes 6 Months 6 Months Year to
to to 31 March
30 September 30 September 2013
2013 2012 Audited
Unaudited Unaudited
HKD'000 HKD'000 HKD'000
Revenue 4 5,089 10,005 14,959
Other income and expense 454 1,103 2,629
Gain on sale of operation
right - - 950
Gain on disposal of subsidiaries - - 2,379
Impairment loss on amount
due from a related company - - (1,636)
Loss on capitalisation
of convertible loan notes - - (8,215)
Share-based payment expenses
other than employee share
option expenses (935) - (4,528)
Course material and consumable
used (629) (1,453) (1,790)
Employee benefits expenses (7,528) (10,282) (21,410)
Tutor contractor fee (1) (100) (142)
Royalty fee (1,152) (1,854) (2,947)
Operating lease payment
in respect of premises (1,204) (4,639) (7,880)
Advertising and marketing
expenses (312) (620) (941)
Management expenses (1,500) (1,200) (2,400)
Depreciation and amortisation
expenses (1,263) (1,321) (2,689)
Other operating expenses (2,396) (2,969) (7,421)
Finance costs (120) (95) (428)
Preparation for AIM and
Admission costs - (12,384) (10,137)
------------ ------------ ------------
Loss before tax (11,497) (25,809) (51,647)
Income tax expenses - - -
------------ ------------ ------------
Loss for the period (11,497) (25,809) (51,647)
Other comprehensive loss - - -
for the period
------------ ------------ ------------
Total comprehensive loss
for the period (11,497) (25,809) (51,647)
Loss and total comprehensive
loss for the period attributable
to the owner of the company (11,497) (25,809) (51,647)
Loss per share
From continuing operations:-
Basic and diluted HKD 5 (0.070) (0.105) (0.314)
Before AIM admission
costs:-
Basic and diluted HKD (0.070) (0.054) (0.252)
LZYE Group Plc
Consolidated Statement of Financial Position
As at 30 September 2013
Notes 6 Months 6 Months Year to
to to 31 March
30 September 30 September 2013
2013 2012 Audited
Unaudited Unaudited
HKD'000 HKD'000 HKD'000
Non-current assets
Property, plant and equipment 1,117 2,418 1,293
Intangible assets 13,192 15,306 14,206
Deposit paid for acquisition
of a subsidiary 2,000 - 2,000
------------ ------------ ------------
16,309 17,724 17,499
------------ ------------ ------------
Current assets
Accounts receivable 625 671 534
Other receivables, deposits
and prepayments 9,500 12,006 10,034
Amount due from ultimate - - -
holding company
Amounts due from related
companies 768 - 40
Deferred expenditure - 964 101
Cash and cash equivalents 300 5,168 448
------------ ------------ ------------
11,193 18,809 11,157
------------ ------------ ------------
Total assets 27,502 36,533 28,656
Equity and liabilities
Share capital 30,009 30,009 30,009
Share premium 32,407 26,000 32,407
Equity-settled share-based
payments reserves 6,939 5,615
Group reorganisation reserve 34,685 35,048 34,685
Accumulated loss (117,448) (80,614) (106,029)
------------ ------------ ------------
Total equity (13,408) 10,443 (3,313)
------------ ------------ ------------
Current liabilities
Accounts and other payables 12,512 5,733 10,831
Amounts due to related companies 7 - -
Loan from ultimate holding
company 6,176 1,581 981
Amount due to directors 7 2,326 203 1,481
Deferred revenue 762 1,513 791
Liability portion of convertible 2,400 - -
loan notes
Shared-based payment liability
-
Due within one year 15,570 - 15,570
------------ ------------ ------------
39,753 9,030 29,654
------------ ------------ ------------
Non-current Liabilities
Loan from ultimate holding
company 1,157 - 2,315
Shared-based payment liability
-
Due after one year - 17,060 -
------------ ------------ ------------
1,157 17,060 2,315
------------ ------------ ------------
Total equity and liabilities 27,502 36,533 28,656
LZYE Group Plc
Consolidated Statement of Cash Flows
For the six months to 30 September 2013
Notes 6 Months 6 Months Year to
to to 31 March
30 September 30 September 2013 Audited
2013 2012
Unaudited Unaudited
HKD'000 HKD'000 HKD'000
Cash flows from operating
activities
Cash used in operations 8 (6,502) (21,122) (29,734)
Interest paid (11) (3) (5)
------------ ------------ ------------
Net cash from operating activities (6,513) (21,125) (29,739)
------------ ------------ ------------
Cash flows from investing
activities
Disposal of subsidiaries - - 1,482
Proceeds from sales of operation
right - - 750
Deposit paid for acquisition
of a subsidiary - - (2,000)
Addition of property, plant
and equipment (71) (837) (922)
------------ ------------ ------------
Cash flows used in investing
activities (71) (837) (690)
------------ ------------ ------------
Cash flows from financing
activities
Proceeds from issue of IPO
shares - 19,362 19,362
Share issue expenses - (52) (2,189)
Proceeds from issue of convertible 2,400 - -
notes
Advanced from ultimate holding
company 5,318 981 13,195
Decrease in amount due from - 6,330 -
ultimate holding company
Decrease in amount due to (1,282) - -
parent company
------------ ------------ ------------
Net cash used in financing
activities 6,436 26,621 30,368
------------ ------------ ------------
Net change in cash and cash
equivalents (148) 4,659 (61)
Cash and cash equivalents
at beginning of year 448 509 509
------------ ------------ ------------
Cash and Cash equivalents
at end of year 300 5,168 448
Represented by:
Bank balances and cash 300 5,168 448
Bank overdraft, unsecured - - -
------------ ------------ ------------
300 5,168 448
LZYE Group Plc
Consolidated Statement of Changes in Equity
For the six months to 30 September 2013
Option
Premium Equity-settled Group
On share-based Reorganis
Share Share convertible payments -ation Accumulated
Capital Premium loan notes reserves Reserve Losses Total
HKD'000 HKD'000 HKD'000 HKD'000 HKD'000 HKD'000 HKD'000
Balance at 1
April 2012 8 56,441 254 - - (54,805) 1,898
Loss for the
period - - - - (51,647) (51,647)
Other
comprehensive - - - - - - -
income for the
period
Transactions
with owners:
Issue of shares
to settle
listing
expenses prior
to the
Reorganisation 1 3,308 - - - - 3,309
Allotment of
shares
pursuant
to the
Reorganisation 25,064 (59,749) - - 34,685 - -
Issue of new
shares for
initial
public
offering 2,420 16,942 - - - - 19,362
Share issue
expenses - (2,189) - - - - (2,189)
Issue of a
convertible
loan note - - 45 - - - 45
Issue of shares
to extinguish
convertible
loan
note 2,125 14,875 - - - - 17,000
Release of
option
premium on
convertible
loan notes
upon
extinguishment
of convertible
loan notes - - (254) - - 254 -
Conversion of
a convertible
loan note 391 2,779 (45) - - - 3,125
Equity-settled
share-based
payments:
- grant of
share
options - - - 2,802 - - 2,802
- issue of
warrants - - - 2,982 - - 2,982
Forfeiture of
share options - - - (169) - 169 -
------------ ------------ ------------ ------------ ------------ ------------ ------------
Balance at 31
March 2013 and
1 April 2013 30,009 32,407 - 5,615 34,685 (106,029) (3,313)
------------ ------------ ------------ ------------ ------------ ------------ ------------
Loss for the
period - - - - - (11,497) (11,497)
Other
comprehensive - - - - - - -
income for the
period
Transactions
with owners:
Equity-settled
share-based
payments:
- grant of
share
options - - - 1,544 - - 1,544
Forfeiture of
share options - - - (220) - 78 (142)
------------ ------------ ------------ ------------ ------------ ------------ ------------
Balance at 30
September 2013 30,009 32,407 - 6,939 34,685 (117,448) (13,408)
------------ ------------ ------------ ------------ ------------ ------------ ------------
LZYE Group Plc
Notes to the Half Year Financial Information
1. General Information
LZYE Group Plc ("LZYE") is a public limited company incorporated in England and Wales but domiciled in Hong Kong with company number 07960668. The registered address is Finsgate, 5- 7 Cranwood Street, London, United Kingdom EC1V 9EE and the principal place of business is Unit 1503, 15/F, 69 Jervois Street, Sheung Wan, Hong Kong. The principal activity of LZYE is that of a holding company. The company is quoted on the AIM market of the London Stock Exchange Plc (Symbol: LZYE).
2. Basis of Preparation
This Half Year report, which incorporates the financial information of the Company, has been prepared using the historical cost convention, on a going concern basis and in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union, using accounting policies which are consistent with those set out in the accountants report set out for the period ended 31 March 2013. This Half Year financial information for the six months ended 30 September 2013 has been approved by the Board.
Taxes
Taxes on income in the Half Year periods are accrued using the tax rate that would be applicable to expected total annual earnings.
There are no taxes provided in the period.
3. Segmental Analysis
The Group's primary reporting format is business segments and its secondary format is geographical segments. The Group currently operates in two business and geographical segments, being the Hong Kong segment and Mainland China segment. In the six months ended 30 September 2012, the Group only had one operating segment, being the Hong Kong segment. Accordingly no segmental information for business segment or geographical segment for the period ended 30 September 2012 was presented.
For the period ended 30 September Hong Kong Mainland Total
2013 HKD'000 China HKD'000
HKD'000
Segment revenue and results
Reportable revenue 5,647 320 5,967
Less: intersegment revenue (878) - (878)
-------------- ------------ ------------
Revenue from external customers 4,769 320 5,089
-------------- ------------ ------------
Reportable segment results (3,440) (3,925) (7,365)
Share-based payment expenses
(including employee share-based
payment) (1,400)
Finance costs (110)
Unallocated corporate income
and expenses (2,622)
------------
Loss before taxation (11,497)
LZYE Group Plc
Notes to the Half Year Financial Information
3. Segmental Analysis (continued)
Segment assets and liabilities
Segment assets
Reportable segment assets 3,251 22,053 25,304
Deposit paid for acquisition
of a subsidiary 2,000
Unallocated corporate assets 198
-- ------------
Consolidated total assets 27,502
Segment liabilities
Reportable segment liabilities 5,474 5,055 10,529
Share-based payment liability
in relation to acquisition of
exclusive right 15,570
Loans from ultimate holding
company 7,333
Convertible loan notes 2,400
Unallocated corporate liabilities 5,078
-- ------------
Consolidated total liabilities 40,910
Other segment information
Depreciation of property, plant
and equipment 249 - 249
Amortisation of intangible asset - 1,015 1,015
Capital expenditure 71 - 71
For the year ended 31 March Hong Kong Mainland Total
2013 HKD'000 China HKD'000
HKD'000
Segment revenue and results
Reportable revenue 16,763 220 16,983
Less: intersegment revenue (2,024) - (2,024)
-------------- ------------ ------------
Revenue from external customers 14,739 220 14,959
-------------- ------------ ------------
Reportable segment results (16,410) (8,931) (25,341)
Gain on disposal of a subsidiary 2,379
Gain on sale of operation rights 950
Loss on extinguishment of convertible
loan notes (8,215)
Impairment loss on amount due
from related company (1,636)
Fair value decrease in share-based
payment liabilities 1,490
Listing expenses (10,137)
Share-based payment expenses
(including employee share-based
payment) (5,784)
Finance costs (428)
Unallocated corporate income
and expenses (4,925)
------------
Loss before taxation (51,647)
LZYE Group Plc
Notes to the Half Year Financial Information
3. Segmental Analysis (continued)
Segment assets and liabilities
Segment assets
Reportable segment assets 3,629 22,578 26,207
Deposit paid for acquisition
of a subsidiary 2,000
Unallocated corporate assets 449
-- ------------
Consolidated total assets 28,656
Segment liabilities
Reportable segment liabilities 7,997 2,038 10,035
Share-based payment liability
in relation to acquisition of
exclusive right 15,570
Loans from ultimate holding
company 3,296
Unallocated corporated liabilities 3,068
-- ------------
Consolidated total liabilities 31,969
Other segment information
Depreciation of property, plant
and equipment 659 - 659
Amortisation of intangible asset - 2,030 2,030
Capital expenditure 922 - 922
4. Revenue
Revenue, which is also the Group's turnover, represents the net amount of services provided and membership fee received during the period.
An analysis of the Group's revenue by nature is as follows:
6 Months 6 Months Year to
to to 31 March
30 September 30 September 2013
2013 2012 Audited
Unaudited Unaudited HKD'000
HKD'000 HKD'000
Income from tutoring and education
services 4,934 8,307 13,389
Membership fee income 155 1,698 1,570
-------------- -------------- ------------
5,089 10,005 14,959
5. Loss per share
6 Months 6 Months Year to
to to 31 March
30 September 30 September 2013
2013 2012 Audited
Unaudited Unaudited
Loss per ordinary share - HKD
Basic and diluted (0.070) (0.105) (0.314)
Earnings per share has been calculated on the net basis on the comprehensive loss after tax of HKD11,497,000 (31 March 2013 - loss HKD51,647,000; 30 September 2012- loss HKD25,809,000) using the weighted average number of ordinary shares in issue of 164,477,173 (31 March 2013 - 164,477,173 and 30 September 2012 -246,706,350).
LZYE Group Plc
Notes to the Half Year Financial Information
6. Directors' remuneration
6 Months 6 Months Year to
to to 31 March
30 September 30 September 2013
2013 2012 Audited
Unaudited Unaudited HKD'000
HKD'000 HKD'000
Fee 555 - 851
Other emoluments:
Basic salaries and allowances 600 1,072 1,789
Annual leave provision - 15 -
Provision for long service leave 8 8 18
Retirement benefit scheme contributions - 11 16
------------ ------------ ------------
1,163 1,106 2,674
7. Amount due to directors
The amount due to the director is the director's remuneration of the executive and non-executive directors.
LZYE Group Plc
Notes to the Half Year Financial Information
8. Cash used in operations
6 Months 6 Months Year to
to to 31 March
30 September 30 September 2013
2013 2012 Audited
Unaudited Unaudited HKD'000
HKD'000 HKD'000
Loss before taxation (11,497) (25,809) (51,647)
Adjustments for:
Interest income - - -
Finance costs 11 95 428
Loss on extinguishment of convertible
loan notes - - 8,215
Gain on disposal of a subsidiary - - (2,379)
Gain on sale of operation right - - (950)
Share-based payment expenses
(including employee share-based
payment expenses) 1,400 3,443 5,784
Listing expenses settled by
issuance of shares - - 3,309
Fair value decrease on share-based
payment liabilities - - (1,490)
Loss on disposal of property,
plant and equipment - - 14
Depreciation and amortisation
expenses 1,263 1,321 2,689
Impairment loss on amount due
from a related company - - 1,636
(Decrease)/increase in provision
for long service payment (168) 137 244
(Decrease)/increase in provision
for unpaid annual leave (189) 77 (23)
------------ ------------ ------------
(9,180) (20,736) (34,170)
Decrease / (increase) in accounts
and other receivables, deposits
and prepayments 442 (2,485) (212)
Decrease / (increase) in amount
due from related companies (727) 5,258 1,717
Decrease / (increase) in deferred
expenditure 101 (529) 334
(Decrease)/Increase in accounts
and other payables 2,046 1,752 6,325
(Decrease)/Increase in amount
due to related companies - (2,567) (2,569)
(Decrease)/Increase in amount
due to directors 844 203 1,481
(Decrease)/Increase in deferred
revenue (28) (2,018) (2,640)
------------ ------------ ------------
Cash used in operations (6,502) (21,122) (29,734)
------------ ------------ ------------
9. The unaudited results for period ended 30 September 2013 do not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. The comparative figures for the period ended 31 March 2013 extracted from the audited financial statements which contained an unqualified audit report.
10. This Half Year financial statement will be, in accordance with Rule 26 of the AIM Rules for Companies, available shortly on the Company's website at www.lzyegroup.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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