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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Tmt Investments Plc | LSE:TMT | London | Ordinary Share | JE00B3RQZ289 | ORD NPV |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 3.62 | 3.52 | 3.72 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Security Brokers & Dealers | -79.75M | -81.39M | -2.5879 | -1.40 | 113.85M |
From Apr 2019 to Apr 2024
TIDMTMT
RNS Number : 6096Z
TMT Investments PLC
16 March 2017
16 March 2017
TMT INVESTMENTS PLC
("TMT" or the "Company")
Results for the year ended 31 December 2016
TMT Investments PLC, the venture capital company which invests in high-growth, technology companies across a number of core specialist sectors, is pleased to announce its final results for the year ended 31 December 2016.
-- US$6.15 million of profitable cash exits from Depositphotos (partial) and VitalFields (full) -- US$4.08 million positive revaluation of Pipedrive -- US$2.57 million impairment of WhalePath, Adinch and Gild
-- US$2.25 million allocated to new and follow-on investments (Vinebox, Send A Job, Attendify, Sixa, Virool, APPrise, Try the World, and Scentbird)
-- Special dividend of US$0.10 per share paid in November 2016 -- NAV per share of US$1.89 (down 1% from US$1.91 as of 31 December 2015)
-- Diversified portfolio of over 30 companies focused around big data, e-commerce, and business SaaS (software-as-a-service) tools
-- Many portfolio companies continue to experience rapid growth -- Strong expectations of a number of positive revaluations in 2017
Alexander Selegenev, Executive Director of TMT, commented: "2016 was another successful year for the Company, with several sizeable revaluations and exits across our portfolio. There is always an asymmetric approach when revaluing the portfolio's assets. The downward re-valuations generally precede the upgrades, which normally only come when there is a tangible 3(rd) party equity transaction. This has the effect of dulling the NAV performance in the first several years of the portfolio's life.
However, we were especially pleased to have effected a major partial disposal in cash of our stake in stock photo marketplace Depositphotos for US$5.83m net. This allowed us to keep investing in promising new companies as well as reinvesting in our most successful portfolio companies to date as they continue to grow. A recent US$17m capital raise by Pipedrive, one of our star portfolio companies, has increased the fair value of our investment in Pipedrive by US$4.08 million. In total, positive revaluations have added 15.2 cents to the Company's NAV per share.
As the portfolio matures, it is not surprising to register some impairments, of which we made three in 2016. These reduced the Company's NAV by 9.3 cents per share.
The Company paid a maiden dividend of 10 cents per share in November 2016, and the net result was that our NAV per share as of 31 December 2016 decreased only slightly to US$1.89 (down 1% from US$1.91 as of 31 December 2015)."
Alexander Selegenev added: "TMT has successfully exited from 9 investments (including two partial exits) since its admission to AIM in December 2010 to date. This demonstrates the management team's ability to identify highly promising companies with exceptional leadership at an early stage. Given the rapid growth experienced by a significant number of our portfolio companies, we strongly expect 2017 to produce several further positive revaluations across our portfolio."
The Annual Report and Accounts for the year ended 31 December 2016 are available on the Company's website at www.tmtinvestments.com, where an electronic copy can be accessed.
For further information contact:
TMT Investments Plc +44 1534 281 843 Alexander Selegenev alexander.selegenev@tmtinvestments.com www.tmtinvestments.com ZAI Corporate Finance Ltd. NOMAD Peter Trevelyan-Clark/Jamie Spotswood +44 20 7060 2220 Hybridan LLP Broker Claire Louise Noyce +44 20 3764 2341 Kinlan Communications Tel. +44 20 7638 3435 David Hothersall davidh@kinlan.net
About TMT Investments
TMT Investments PLC invests in high-growth, technology companies across a number of core specialist sectors and has a significant number of Silicon Valley investments in its portfolio. Founded in 2010, TMT has net assets of US$53m and has invested in over 40 companies to date. The company's objective is to generate an attractive rate of return for shareholders, predominantly through capital appreciation. The company is traded on the AIM market of the London Stock Exchange. www.tmtinvestments.com
EXECUTIVE DIRECTOR'S STATEMENT
Although quieter than 2015, 2016 has been another successful year for the Company, with a number of sizeable revaluations and exits across our portfolio. As a result, even after the payment of the Company's maiden dividend of 10 cents per share in November 2016, our NAV per share as of 31 December 2016 decreased only slightly to US$1.89 (down 1% from US$1.91 as of 31 December 2015). TMT has now invested in over 40 companies since its admission to AIM in December 2010 and has a diversified portfolio of over 30 investees focused primarily on big data, e-commerce, and business SaaS (software-as-a-service) tools.
Portfolio Performance
Following the exceptional performance in calendar year 2015, in which over 10 of the Company's portfolio companies experienced positive revaluations for a total of US$18.5 million, 2016 was relatively quieter as the portfolio continued to mature. Key highlights included the partial disposal of our successful investment in stock photo marketplace Depositphotos and the significant positive revaluation of our equity stake in Pipedrive. We continue to pursue a conservative approach to valuations of poorly performing assets and wrote down three of our investee companies in 2016 for a combined total of US$2.57 million. This was more than offset by the US$2.55 million fair value uplift on the partial disposal of our investment in Depositphotos and the US$4.08 million fair value uplift in our investment in Pipedrive.
The following developments took place within the Company's portfolio in 2016:
Cash and partial cash exits, and positive non-cash revaluations:
-- As announced in March 2016, the Company sold a sizeable part of its holding in Depositphotos for a net cash consideration of US$5.83 million to a private European investor. The transaction represented an approximately 5.5 times increase in the valuation of TMT's holding in Depositphotos since its original investments in 2011, 2012 and 2015, and an approximately US$2.55 million (or 18%) uplift in fair value compared to the previously reported amount as of 31 December 2015.
-- In November 2016, farm management software provider VitalFields was acquired by The Climate Corporation, a subsidiary of Monsanto. The acquisition by Monsanto became the ninth profitable exit by TMT from its investment portfolio since its admission to AIM in December 2010 and represented a US$145,329 (or 84%) uplift in fair value compared to the previously reported amount as of 31 December 2015.
-- As announced in January 2017, Pipedrive, Inc. ("Pipedrive") completed a US$17 million Series B equity financing round, led by Atomico, with participation from Bessemer Venture Partners and Rembrandt Venture Partners. The transaction represented a revaluation uplift of approximately US$4.08 million (or 132%) in the fair value of TMT's investment in Pipedrive, compared to the previously reported amount as of 31 December 2015.
Impairments and write-offs:
-- As announced in our interim accounts, in the first half of 2016, Whale Path, Inc. suspended its operations after not securing further funding. Accordingly, the Company incurred an impairment charge equal to 100% of the previously reported fair value of the Company's investment, as well as unpaid accumulated interest payable to TMT of approximately US$220,000 in total.
-- As announced in our interim accounts, online advertising platform Adinch, in which TMT invested in 2013, has suffered from the challenging economic conditions in Russia in the last three years, as well as certain recent operating issues. Accordingly, in the first half of 2016 the Board of TMT considered it prudent to incur an impairment charge equal to US$1.8 million, or 75% of the fair value of the Company's investment in Adinch previously reported as of 31 December 2015.
-- In the second half of 2016, online recruitment platform Gild, in which TMT invested in 2011, was sold to a strategic buyer. Unfortunately, the size of the consideration was not sufficient for any of Gild's preferred or common stockholders to participate in the distribution of proceeds. Accordingly, the Company wrote off the entire value of its investment in Gild of US$549,345 previously reported as of 31 December 2015.
10 largest portfolio holdings:
Hot Features
Premium
Portfolio Company Fair value as % of total
Name (US$), as portfolio
of 31 Dec value
2016 and currently
------------------- -------------------- --------------
Depositphotos 10,836,105 20.84%
------------------- -------------------- --------------
Backblaze 9,624,277 18.51%
------------------- -------------------- --------------
Pipedrive 7,175,590 13.80%
------------------- -------------------- --------------
Wanelo 5,369,400 10.33%
------------------- -------------------- --------------
Wrike 4,303,578 8.28%
------------------- -------------------- --------------
Virool 2,013,851 3.87%
------------------- -------------------- --------------
Unicell 1,455,088 2.80%
------------------- -------------------- --------------
LeTote 1,068,878 2.06%
------------------- -------------------- --------------
Anews 1,000,000 1.92%
------------------- -------------------- --------------
ScentBird 900,726 1.73%
------------------- -------------------- -------------- Total 43,747,493 84.15% ------------------- -------------------- --------------
Key developments for the 10 largest portfolio holdings in 2016 (compared to 2015; source: TMT's portfolio companies)
Depositphotos (stock photo marketplace):
-- Continuing double-digit growth in revenue and number of files in the photobank -- US$5.83m partial cash exit by TMT
Backblaze (online data backup and cloud storage provider):
-- Continuing double-digit growth in revenues -- Stores 300 petabytes (about half as much as Dropbox) -- Listed on Deloitte's Fast 500 of fastest growing companies
Pipedrive (sales CRM software):
-- Continuing double-digit growth in revenue and number of paid accounts -- US$17m new equity raised from Atomico and others
Wanelo (online social shopping platform):
-- Revenues up 82% -- Over 550,000 stores and 30 million products on the platform
Wrike (work management and collaboration software):
-- Continuing double-digit growth in revenue and number of paid accounts
Virool (native video advertising platform):
-- Sizeable new convertible note round completed -- Significant growth in new clients and revenues
Unicell (provider of digital marketing solutions and mobile applications and services):
-- Generally breakeven -- Traditional business is contracting
-- 50%-owned Pango, a parking payment operator in Israel, is fast-growing and cash generative, helping Unicell gradually reduce its debt levels
LeTote (Netflix-style fashion rental platform):
-- Continuing triple-digit growth in revenue and number of users
Anews (news reading app):
-- Total monthly active users up 85% -- Revenues up 38%
ScentBird (perfume subscription service):
-- Revenues up 544% -- Total paying subscribers up 300% -- New make-up palette subscription service Deck of Scarlet launched and rapidly growing
New investments
In 2016, the Company made the following investments:
-- US$300,000 in wine-by-the-glass subscription club Vinebox, Inc. (www.getvinebox.com); -- US$150,000 in field service management software provider Send A Job Inc. (www.sendajob.com);
-- An additional US$200,000 in KitApps Inc., the provider of Attendify, the mobile app platform for the events industry (www.attendify.com);
-- US$300,000 in cloud-based PC emulator Sixa, Inc. (www.sixa.io); -- An additional US$200,000 in native video advertising platform Virool, Inc. (www.virool.com);
-- US$300,000 in Theirapp, Inc., developer of APPrise-branded mobile apps for the public relations, investor relations, and corporate communications industries (www.apprise-mobile.com);
-- US$299,995 in online marketplace for authentic specialty foods Try The World, Inc. (www.trytheworld.com); and
-- An additional US$500,000 in perfume subscription service ScentBird (www.scentbird.com).
NAV per share
The Company's net asset value per share as of 31 December 2016 decreased to US$1.89 (31 December 2015: US$1.91).
Operating Expenses
In 2016, the Company's Administrative Expenses of US$1,065,442 were broadly in line with the 2015 levels (US$997,705). Total Operating Expenses increased in the reporting period due to the bonus charge of US$837,359 (2015: zero), covering the first period of the Company's bonus plan from 1 July 2015 to 30 June 2016.
Dividends
In November 2016, the Company paid its first special dividend of US$0.10 per share, for the total of US$2,774,496.
Financial position
The partial disposal of our successful investment in stock photo marketplace Depositphotos for a net consideration of US$5.83 million significantly improved the Company's cash position in 2016. TMT's founders and senior managers German Kaplun, Artyom Inyutin and Alexander Morgulchik extended their commitment to helping the Company's cash position by deferring half of their respective 2016 salaries (a total of US$150,000) until 31 December 2018. In addition, the same senior managers agreed to defer the entire amounts of their respective bonus awards due to them under the terms of the Company's bonus plan for the financial period from 1 July 2015 to 30 June 2016 (a total of US$489,855), until 31 December 2019. Accordingly, despite the Company's payment of its first dividend in November 2016 and continuing investment programme, as of 31 December 2016 the Company had no financial debt and approximately US$1.06 million in cash reserves. As of the date of this report, the Company has approximately US$870,000 in cash reserves.
Events after the reporting period
TMT's founders and senior managers German Kaplun, Artyom Inyutin and Alexander Morgulchik agreed to defer half of their respective 2017 salaries (a total of US$150,000) until 31 December 2019.
Outlook
2016 was our sixth full year as a publicly traded company. Against the backdrop of continuing investor interest in the Tech/Internet sector, and expected revival in the Tech IPO and M&A markets, we expect to see a number of positive revaluations across our portfolio, especially from our star portfolio companies.
We continue to see exciting investment opportunities in our chosen sectors and look forward to updating our shareholders on the Company's progress in the near future.
Alexander Selegenev
Executive Director
Statement of Comprehensive Income
For the year For the
ended 31/12/2016 year ended
31/12/2015
Notes USD USD
Gains (Losses) on investments 3 3,662,337 (2,215,983)
------------------------------------------------- ------ ------------------ ------------
3,662,337 (2,215,983)
Expenses
Share-based payment charge 16 - (45,028)
Bonus scheme payment charge (837,359) -
Administrative expenses 5 (1,065,442) (997,705)
------------------------------------------------- ------ ------------------ ------------
Operating gain (loss) 1,759,536 (3,258,716)
Net finance income 7 3,791 7,964
------------------------------------------------- ------ ------------------ ------------
Gain (Loss) before taxation 1,763,327 (3,250,752)
Taxation 8 - -
------------------------------------------------- ------ ------------------ ------------
Gain (Loss) attributable to equity shareholders 1,763,327 (3,250,752)
Other comprehensive income for the year:
Change in fair value of available-for-sale
financial assets 17 584,032 18,505,974
------------------------------------------------- ------ ------------------ ------------
Total comprehensive income for the year 2,347,359 15,255,222
------------------------------------------------- ------ ------------------ ------------
Earnings (Loss) per share
Basic and diluted earnings (loss) per
share (cents per share) 9 6.36 (11.75)
------------------------------------------------- ------ ------------------ ------------
Statement of Financial Position
At 31 December At 31 December
2016 2015
USD USD
Notes
Non-current assets
Investments in equity shares 10 48,335,876 49,483,857
Convertible loan notes receivable 10 3,650,596 2,202,649
Total non-current assets 51,986,472 51,686,506
Current assets
Trade and other receivables 11 226,917 178,640
Cash and cash equivalents 12 1,057,098 1,159,789
Total current assets 1,284,015 1,338,429
Total assets 53,270,487 53,024,935
Current liabilities
Trade and other payables 13 72,211 39,377
Total current liabilities 72,211 39,377
----------------------------------- ------ ------------------------ ---------- ------------------------
Non-current liabilities
Other payables 14 639,855 -
----------------------------------- ------ ------------------------ ---------- ------------------------
Total non-current liabilities 639,855 -
----------------------------------- ------ ------------------------ ---------- ------------------------
Total liabilities 712,066 39,377
----------------------------------- ------ ------------------------ ---------- ------------------------ Net assets 52,558,421 52,985,558 ----------------------------------- ------ ------------------------ ---------- ------------------------ Equity Share capital 15 31,453,510 31,453,510 Share-based payment reserve 17 - 165,454 Fair value reserve 17 29,393,774 28,614,592 Retained losses 17 (8,288,863) (7,247,998) Total equity 52,558,421 52,985,558 ----------------------------------- ------ ------------------------ ---------- ------------------------
Statement of Cash Flows
For the For the year
year ended 31/12/2015
ended
31/12/2016
USD USD
Notes
Operating activities
Operating gain (loss) 1,759,536 (3,258,716)
-------------------------------------------------- ----- ----------- -----------------
Adjustments for non-cash items:
Profit on disposal of available-for-sale
assets 3 (5,178,466) (645,387)
Gain on conversion of loan notes to equity - -
Impairment of available-for-sale assets
and accrued interest 3 1,559,828 2,937,509
Share-based payment charge 16 - 45,028
Amortized costs of convertible notes
receivable 3 4,900 6,533
(1,854,202) (915,033)
-------------------------------------------------- ----- ----------- -----------------
Changes in working capital:
Increase in trade and other receivables 11 (67,693) (18,856)
Decrease/(increase) in trade and other
payables 13 672,689 (20,022)
Net cash used by operating activities (1,249,206) (953,911)
-------------------------------------------------- ----- ----------- -----------------
Investing activities
Interest received 7 3,791 7,964
Purchase of available-for-sale assets 10 (2,252,995) (1,561,762)
Proceeds from sale of available-for-sale
assets 10 6,170,215 1,028,428
-------------------------------------------------- ----- ----------- -----------------
Net cash generated/(used) by investing activities 3,921,011 (525,370)
-------------------------------------------------- ----- ----------- -----------------
Financing activities
Dividends paid 17 (2,774,496) -
-------------------------------------------------- ----- ----------- -----------------
Net cash used in financing activities (2,774,496) -
-------------------------------------------------- ----- ----------- -----------------
Decrease in cash and cash equivalents (102,691) (1,479,281)
-------------------------------------------------- ----- ----------- -----------------
Cash and cash equivalents at the beginning
of the year 1,159,789 2,639,070
-------------------------------------------------- ----- ----------- -----------------
Cash and cash equivalents at the end of
the year 12 1,057,098 1,159,789
-------------------------------------------------- ----- ----------- -----------------
Statement of Changes in Equity
For the year ended 31 December 2015 and for year ended 31 December 2016, USD
Share capital Share-based Fair value Retained losses Total
payment reserve reserve
Notes USD USD USD USD USD
Balance at 1
January 2015 31,453,510 392,659 10,108,618 (4,269,479) 37,685,308
------------------ ------ -------------- ------------------ ------------------ ---------------- ------------
Total
comprehensive
income/(loss)
for the year - - 18,505,974 (3,250,752) 15,255,222
Share-based
payment charge 16 - 45,028 - - 45,028
Lapse of share
options 17 - (272,233) - 272,233 -
Balance at 31
December 2015 31,453,510 165,454 28,614,592 (7,247,998) 52,985,558
------------------ ------ -------------- ------------------ ------------------ ---------------- ------------
Total
comprehensive
income for the
year - - 584,032 1,763,327 2,347,359
Dividends paid 17 - - - (2,774,496) (2,774,496)
Lapse of share
options 17 - (165,454) - 165,454 -
Previous year
adjustments - - 195,150 (195,150) -
------------------ ------ -------------- ------------------ ------------------ ---------------- ------------
Balance at 31
December 2016 31,453,510 - 29,393,774 (8,288,863) 52,558,421
------------------ ------ -------------- ------------------ ------------------ ---------------- ------------
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARED 31 DECEMBER 2016
1. Company information
TMT Investments Plc ("TMT" or the "Company") is a company incorporated in Jersey with its registered office at Queensway House, Hilgrove Street, St Helier, JE1 1ES, Channel Islands.
The Company was incorporated and registered on 30 September 2010 in Jersey under the Companies (Jersey) Law 1991 with registration number 106628 under the name TMT Investments Limited. The Company obtained consent from the Jersey Financial Services Commission pursuant to the Control of Borrowing (Jersey) Order 1985 on 30 September 2010. On 1 December 2010 the Company re-registered as a public company and changed its name to TMT Investments PLC.
The memorandum and articles of association of the Company do not restrict its activities and therefore it has unlimited legal capacity. The Company's ability to implement its Investment Policy and achieve its desired returns will be limited by its ability to identify and acquire suitable investments. Suitable investment opportunities may not always be readily available.
The Company will seek to make investments in any region of the world.
Financial statements of the Company are prepared by and approved by the Directors in accordance with International Financial Reporting Standards, International Accounting Standards and their interpretations issued or adopted by the International Accounting Standards Board as adopted by the European Union ("IFRSs"). The Company's accounting reference date is 31 December.
2. Summary of significant accounting policies 2.1 Basis of presentation
The principal accounting policies applied by the Company in the preparation of these financial statements are set out below and have been applied consistently.
The financial statements have been prepared on a going concern basis, under the historical cost basis as modified by the fair value of available-for-sale financial assets, as explained in the accounting policies below, and in accordance with IFRS. Historical cost is generally based on the fair value of the consideration given in exchange for assets.
2.2 Going concern
The Directors confirm that, after giving due consideration to the financial position and expected cash flows of the Company, they have a reasonable expectation that the Company will have adequate cash resources to continue in operational existence for the foreseeable future, and for at least one year from the date of approval of these financial statements and they have therefore adopted the going concern basis in preparing the financial statements.
2.3 Segmental reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker who is responsible for allocating resources and assessing performance of the operating segments and which has been identified as the Board of Directors that make strategic decisions. For the purposes of IFRS 8 'Operating Segments' the Company currently has one segment, being 'Investing in the TMT sector'.
Even though the Company only has one segment, there are still geographical disclosures that need to be made to comply with IFRS 8 'Operating Segments'.
The Company analyses revenue and non-current financial assets according to the geographical location of the investment (see note 4).
2.4 Foreign currency translation
(a) Functional and presentation currency
Items included in the financial statements of the Company are measured in United States Dollars ('US dollars', 'USD' or 'US$'), which is the Company's functional and presentation currency.
(b) Transactions and balances
Foreign currency transactions are translated into US$ using the exchange rates prevailing at the dates of the transactions. Exchange differences arising from the translation at the year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income.
Conversation rates, USD
---------------------------------------------------
Currency Average
At 31.12.2016 rate, 2016
----------------- -------------- ------------
British pounds,
GBP 1.2288 1.3511
Euro, EUR 1.0575 1.1041
--------------------- -------------- ------------
2.5 Cash and cash equivalents
Cash and cash equivalents consist of cash at bank and in hand, deposits held at call with banks, bank overdrafts and other short-term highly liquid investments with maturities of three months or less from the date of acquisition.
2.6 Financial assets
Recognition and measurement
Investments are recognized and de-recognized on a date where the purchase or sale of an investment is under a contract whose terms require the delivery or settlement of the investment. The Company manages its investments with a view to profiting from the receipt of dividends and changes in fair value of equity investments.
"Available-for-sale" financial instruments include unlisted equity investments and convertible promissory loan notes. Equity instruments classified as available-for-sale are those which are neither classified as held-for-trading nor designated as fair value through profit or loss. Convertible promissory loan notes are treated as similar in nature to the unlisted equity investments and designated as available-for-sale.
Available-for-sale investments are carried at fair values except for financial assets that do not have a quoted market price in an active market and whose fair value cannot be reliably measured which are measured at cost less any identified impairment losses at the end of the period in accordance with the IAS 39 para 46 (c) exemptions. Fair value information has therefore not been disclosed for those investments.
Where there has been a relevant transaction during the year that gives an indication of the fair value of the available-for-sale unlisted shares, the shares are included at that fair value and the increase or decrease in fair value is recognised in the investment fair value reserve. The "price of recent investment" methodology is used mainly for investments in venture capital companies and includes cost of investment or valuation by reference to a subsequent financing round. Valuation increases above cost are only recognised if that round involved a new external investor and the company is meeting milestones set by investors.
Investments are classified on recognition as "fair value through profit and loss" when their fair values can be estimated reliably on a regular basis and when they are managed on a fair value basis. Fair value changes of investments at fair value through profit and loss are included within profit/loss in the income statement. At 31 December 2016 all investments are classified as "available-for-sale" and none are classified as "fair value through profit and loss".
Financial assets that qualify as an associate as 20% or more of the voting rights are held by the company, are exempt from IAS 28 'Investments in Associates', as TMT Investments plc is a venture capital organisation. Such investments are therefore treated as available-for-sale financial assets.
Income
Interest income from convertible notes receivable is recognized as it accrues by reference to the principal outstanding and the effective interest rate applicable, which is the rate that exactly discounts the estimated future cash flows through the expected life of the financial asset to the asset's carrying value.
Impairment of available-for-sale financial assets
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. In the case of available for sale assets, a significant or prolonged decline in the fair value of the financial asset below its cost is considered an indicator that the financial assets are impaired.
If objective evidence indicates that financial assets that are carried at cost need to be tested for impairment, calculations are based on information derived from business plans and other information available for estimating their fair value. Any impairment loss is included in profit/loss for the year in the Statement of Comprehensive Income.
2.7 Net finance income
Net finance income comprises interest income on deposits. Interest income is recognized as it accrues in the statement of comprehensive income, using the effective interest method. Finance costs comprise interest expenses on borrowings and the unwinding of the discount on provisions.
2.8 Taxation
Deferred tax is provided in full using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that, at the time of the transaction, affects neither accounting nor taxable profit or loss. Deferred tax is determined using tax rates that are expected to apply when the related deferred tax asset is realised or when the deferred tax liability is settled. Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised.
2.9 Equity instruments
Ordinary shares are classified as equity. Costs directly attributable to the issue of new shares are shown in equity as a deduction from the proceeds.
2.10 Share-based payments
The fair value of options granted to employees is recognized as an employee expense, with a corresponding increase in equity, over the period that the employees become unconditionally entitled to the options. The amount recognized as an expense is adjusted to reflect the actual number of share options that vest. For equity settled share-based payment transactions other than transactions with employees the Company measures the goods or services received at their fair value, unless that fair value cannot be estimated reliably. If this is the case the Company measures their fair values and the corresponding increase in equity, indirectly, by reference to the fair value of equity instruments granted.
The Company enters into arrangements that are equity-settled share-based payments with certain employees. These are measured at fair value at the date of grant, which is then recognized in the statement of comprehensive income on a straight-line basis over the vesting period, based on the Company's estimate of shares that will eventually vest. Fair value is measured by use of an appropriate model. In valuing equity-settled transactions, no account is taken of any vesting conditions, other than conditions linked to the price of the shares of TMT Investments. The charge is adjusted at each year end date to reflect the actual number of forfeitures, cancellations and leavers during the period. The movement in cumulative charges since the previous year end is recognized in the statement of comprehensive income, with a corresponding entry in equity.
2.11 New IFRSs and interpretations not applied
The IASB has issued the following standards and interpretations which have been endorsed by the European Union to be applied to financial statements with periods commencing on or after the following dates:
Effective for period beginning on or after
IFRS 9 Financial Instruments 1 January 2018
======= ===================================== ==========================================
IFRS 15 Revenue from Contracts with Customers 1 January 2018
======= ===================================== ==========================================
The IASB has also issued the following standards and interpretations which have not been endorsed by the European Union:
Effective for period beginning on or after
IFRS 16 Leases 1 January 2019
======= ========================================== ==========================================
The Directors do not anticipate that the adoption of these standards and interpretations will have a material impact on the financial statements in the period of initial application and have decided not to adopt any of them early.
2.12 Accounting estimates and judgements
Estimates and judgements need to be regularly evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, rarely equal the related actual results.
The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.
The estimates significant to the financial statements during the year and at the year-end is the consideration of the fair value of available-for-sale assets, the impairment of available-for-sale assets and share-based payment calculations, as set out in the relevant accounting policies shown above. A number of the available-for-sale financial assets held by the Company are at an early stage of their development. The Company cannot yet carry out regular reliable fair value estimates of some of these investments. Future events or transactions involving the companies invested in may result in more accurate valuations of their fair values (either upwards or downwards) which may affect the Company's overall net asset value.
3 Gains (Losses) on investments
For the year ended 31/12/2016 For the year ended 31/12/2015
USD USD
Gross interest income from convertible notes
receivable 48,599 82,672
Amortized costs of convertible notes receivable (4,900) (6,533)
Net interest income from convertible notes
receivable 43,699 76,139
Profit on disposal of equity investments 5,178,466 645,387
Impairment of available-for-sale assets (1,559,828) (2,937,509)
Total net gains/(losses) on investments 3,662,337 (2,215,983)
---------------------------------------------------- ------------------------------ ------------------------------
4 Segmental analysis
Geographic information
The Company has investments in six principal geographical areas - USA, Israel, BVI, Cyprus, Estonia and Russia.
Non-current financial assets
As at 31/12/2016
USA Israel BVI Cyprus Estonia Russia Total
USD USD USD USD USD USD USD
-------------------- ----------- ---------- -------- -------- -------- ------- -----------
Equity investments 44,481,925 2,973,369 305,050 465,921 50,515 59,096 48,335,876
Convertible
notes 3,650,596 - - - - - 3,650,596
-------------------- ----------- ---------- -------- -------- -------- ------- -----------
Total 48,132,521 2,973,369 305,050 465,921 50,515 59,096 51,986,472
-------------------- ----------- ---------- -------- -------- -------- ------- -----------
As at 31/12/2015
USA Israel BVI Cyprus Estonia Russia Total
USD USD USD USD USD USD USD
-------------------- ----------- ---------- -------- -------- -------- ------- -----------
Equity investments 45,507,167 2,973,369 305,050 465,921 173,254 59,096 49,483,857
Convertible
notes 2,202,649 - - - - - 2,202,649
-------------------- ----------- ---------- -------- -------- -------- ------- -----------
Total 47,709,816 2,973,369 305,050 465,921 173,254 59,096 51,686,506
-------------------- ----------- ---------- -------- -------- -------- ------- -----------
5 Administrative expenses
Administrative expenses include the following amounts:
For the year ended 31/12/2016 For the year ended 31/12/2015
USD USD
--------------------------- ------------------------------ ------------------------------
Staff expenses (note 6) 583,101 595,511
Professional fees 218,889 128,583
Legal fees 34,095 26,342
Bank and LSE charges 20,312 20,577
Audit and accounting fees 43,843 43,489
Rent 7,000 91,384
Other expenses 121,380 83,108
Currency exchange loss 36,822 8,711
--------------------------- ------------------------------ ------------------------------
1,065,442 997,705
--------------------------- ------------------------------ ------------------------------
6 Staff expenses
For the year ended 31/12/2016 For the year ended 31/12/2015
USD USD
-------------------- ------------------------------ ------------------------------
Directors' fees 186,621 199,031
Wages and salaries 396,480 396,480
583,101 595,511
-------------------- ------------------------------ ------------------------------
Wages and salaries shown above include salaries relating to 2016. These costs are included in administrative expenses.
The bonus scheme payment charge for the year is analysed as follows:
For the year ended 31/12/2016 For the year ended 31/12/2015
USD USD
------------ ------------------------------ ------------------------------
Directors 230,274 -
Other staff 573,591 -
803,865 -
------------ ------------------------------ ------------------------------
The average number of staff employed (excluding Directors) by the Company during the year was 5 (2015: 5).
The Directors' fees for 2016 were as follows:
For the year ended 31/12/2016 For the year ended 31/12/2015
USD USD
---------------------- ------------------------------ ------------------------------
Alexander Selegenev 262,970 108,475
Yuri Mostovoy 116,989 50,000
James Joseph Mullins 26,936 30,556
Petr Lanin 10,000 10,000
---------------------- ------------------------------ ------------------------------
416,895 199,031
---------------------- ------------------------------ ------------------------------
The Directors' fees shown above are all classified as 'short term employment benefits' under International Accounting Standard 24. The Directors do not receive any pension contributions or other benefits and hold no share options.
Key management personnel of the Company are defined as those persons having authority and responsibility for the planning, directing and controlling the activities of the Company, directly or indirectly. Key management of the Company are therefore considered to be the Directors of the Company. There were no transactions with the key management, other than their Directors fees, bonuses and reimbursement of business expenses.
7 Net finance income
For the year ended 31/12/2016 For the year ended 31/12/2015
USD USD
----------------- ------------------------------ ------------------------------
Interest income 3,791 7,964
3,791 7,964
----------------- ------------------------------ ------------------------------
8 Income tax expense
For the year ended 31/12/2016 For the year ended 31/12/2015
USD USD
---------------------- ------------------------------ ------------------------------
Current taxes
Current year - -
---------------------- ------------------------------ ------------------------------
Deferred taxes
Deferred income taxes - -
---------------------- ------------------------------ ------------------------------
- -
---------------------- ------------------------------ ------------------------------
The Company is incorporated in Jersey. No tax reconciliation note has been presented as the income tax rate for Jersey companies is 0%.
9 Earnings/(Loss) per share
The calculation of basic gain per share is based upon the net gain for the year ended 31 December 2016 attributable to the ordinary shareholders of US$1,763,327 (2015: net loss of US$3,250,752) and the weighted average number of ordinary shares outstanding calculated as follows:
Earnings/(Loss) per share For the year ended 31/12/2016 For the year ended 31/12/2015 ---------------------------------------------------- ------------------------------ ------------------------------ Basic earnings/(loss) per share (cents per share) 6.36 (11.75) Earnings/(Loss) attributable to equity holders of the entity 1,763,327 (3,250,752) ---------------------------------------------------- ------------------------------ ------------------------------
The weighted average number of ordinary shares outstanding before and after adjustment for the effects of all dilutive potential ordinary shares calculated as follows:
(in number of shares weighted during the year For the year ended 31/12/2016 For the year ended 31/12/2015
outstanding)
---------------------------------------------------- ------------------------------ ------------------------------
Weighted average number of shares in issue
Ordinary shares 27,744,962 27,744,962
27,744,962 27,744,962
---------------------------------------------------- ------------------------------ ------------------------------
Effect of dilutive potential ordinary shares
Share options - (21,099)
---------------------------------------------------- ------------------------------ ------------------------------
Weighted average of shares for the year (fully
diluted) 27,744,962 27,723,863
---------------------------------------------------- ------------------------------ ------------------------------
The diluted loss per share for 2015 is as the basic loss per share because the conversion of the share options decreases the basic loss per share and is therefore anti-dilutive.
10 Non-current financial assets
At 31 December 2016 At 31 December 2015
Available-for-sale financial assets, USD:
Investments in equity shares (i)
- unlisted shares 48,335,876 49,483,857
Convertible notes receivable (ii)
- promissory notes 3,650,596 2,202,649
------------------------------------------- -------------------- --------------------
51,986,472 51,686,506
------------------------------------------- -------------------- --------------------
Reconciliation of fair value measurements of non-current financial assets:
Available-for-sale Total
----------------------------------------------- ---------------------------------- ------------
Unlisted Convertible
shares notes
USD USD USD
----------------------------------------------- ---------------- ---------------- ------------
Balance as at 1 January 2015 31,854,151 3,091,702 34,945,853
------------------------------------------------ ---------------- ---------------- ------------
Total gains or losses in 2015:
- in profit or loss - impairment (2,292,123) - (2,292,123)
- in other comprehensive income 18,505,974 - 18,505,974
Purchases (including consulting & legal fees) 1,060,745 501,018 1,561,763
Disposal of investment (carrying value) (1,028,428) (6,533) (1,034,961)
Conversion of notes to equity and net gain 1,383,538 (1,383,538) -
------------------------------------------------ ---------------- ---------------- ------------
Balance as at 31 December 2015 49,483,857 2,202,649 51,686,506
------------------------------------------------ ---------------- ---------------- ------------
Total gains or losses in 2016:
- in profit or loss 3,838,207 (219,568) 3,618,639
- in other comprehensive income 584,032 - 584,032
Purchases (including consulting & legal fees) 599,995 1,653,000 2,252,995
Disposal of investment (carrying value) (6,170,215) (4,900) (6,175,115)
Conversion and other movements - 19,415 19,415
------------------------------------------------ ---------------- ---------------- ------------
Balance as at 31 December 2016 48,335,876 3,650,596 51,986,472
------------------------------------------------ ---------------- ---------------- ------------
Available-for-sale investments are carried at fair values. Where financial assets do not have a quoted market price in an active market and their fair values cannot be reliably measured they are measured at cost less any identified impairment losses at the end of reporting period, in accordance with IAS 39 para 46 (c) exemption.
Where there has been a relevant transaction during the year that gives an indication of the fair value of the unlisted shares, the shares are included at that fair value and the increase or decrease in fair value is recognised in the fair value reserve. The "price of recent investment" methodology is used mainly for investments in venture capital companies and includes cost of investment or valuation by reference to a subsequent financing round. Valuation increases above cost are only recognised if that round involved a new external investor and the company is meeting milestones set by investor.
(i) Equity investments as at 31 December 2016:
Investee Date Value Additions Gain/(loss) Profit/ Disposals, Value Equity
company of initial at to equity from (Impairment USD at 31 stake
investment 1 Jan investments Conversions changes charge), Dec 2016, owned
2016, during from loan in fair USD USD
USD the notes, value
period, USD of equity
USD investments,
USD
---------------- ------------ ------------ ------------ ------------- ------------- ------------ ------------ ----------- -------
Unicell 15.09.2011 1,455,088 - - - - - 1,455,088 10.00%
DepositPhotos 26.07.2011 14,119,033 - - (2,479,199) 5,025,303 (5,829,032) 10,836,105 16.67%
RollApp 19.08.2011 600,000 - - - - - 600,000 10.00%
Wanelo 21.11.2011 5,369,400 - - - - - 5,369,400 4.73%
Gild 05.12.2011 549,345 - - (213,085) (336,260) - - -
ThusFresh 26.03.2012 379,355 - - - - - 379,355 3.53%
Backblaze 24.07.2012 9,624,277 - - - - - 9,624,277 14.55%
UM Liquidating
Trust 15.07.2014 29,273 - - - - - 29,273 5.89%
Gentoo LABS 15.05.2014 260,000 - - - - - 260,000 6.88%
Favim 24.10.2012 305,050 - - - - - 305,050 20.00%
AppsIndep 12.11.2012 465,921 - - - - - 465,921 19.24%
Virool 29.08.2012 1,813,851 - - - - - 1,813,851 1.42%
Adinch 19.02.2013 2,400,001 - - (796,001) (1,004,000) - 600,000 22.43%
Tracks 24.11.2011 146,229 - - - - (73,114) 73,115 -
Wrike 12.06.2012 4,303,578 - - - - - 4,303,578 3.68%
Oriense 27.01.2014 59,096 - - - - - 59,096 5.45%
E2C 15.02.2014 136,781 - - - - - 136,781 5.51%
Drippler 01.05.2014 302,400 - - - - - 302,400 1.45%
Weaved 13.06.2014 255,000 - - - - - 255,000 2.44%
Le Tote 21.07.2014 1,068,878 - - - - - 1,068,878 1.35%
Anews 25.08.2014 1,000,000 - - - - - 1,000,000 9.41%
Klear/Twtrland 01.09.2014 155,000 - - - - - 155,000 3.27%
Drupe 02.09.2014 595,142 - - - - - 595,142 7.47%
Taxify 15.09.2014 328,958 - - - - - 328,958 2.80%
Pipedrive 30.07.2012 3,095,439 - - 4,080,151 - - 7,175,590 3.89%
Pandadoc/
Quoteroller 11.07.2014 493,508 - - - - - 493,508 2.17%
VitalFields 20.12.2013 173,254 - - (7,834) 153,162 (268,067) 50,515 -
APPrise 16.08.2016 300,000 - - - - 300,000 4.43%
Try the
World 11.10.2016 299,995 - - - - 299,995 0.81%
Total 49,483,857 599,995 - 584,032 3,838,207 (6,170,215) 48,335,876
------------------------------ ------------ ------------ ------------- ------------- ------------ ------------ -----------
(ii) Convertible loan notes as at 31 December 2016:
Investee Date of Value at Additions Capitalized Amortized Internal Profit on Disposals, Value at Term, Interest
company initial 1 Jan to consulting costs, movements, disposal/ USD 31 Dec years rate, %
investment 2016, convertible and legal USD USD Impairment 2016, USD
USD note fees, USD charge,
investments USD
during the
period, USD
------------ ------------ ---------- ------------ ------------ ---------- ----------- ----------- ----------- ---------- ------ ---------
Ninua 08/06/2011 500,000 - - - - - - 500,000 1.5 5.00%
Sharethis 26/03/2013 570,924 - - (398) - - - 570,526 5.0 1.09%
Attendify/
KitApps 10/07/2013 400,047 200,000 - (47) - - - 600,000 1.0 2.00%
Gentoo LABS 21/05/2014 100,133 - - (133) - - - 100,000 2.0 0.28%
Whale Path 02/06/2014 201,056 - - (903) 19,415 (219,568) - - - -
ScentBird 13.04.2015 403,212 500,000 - (2,486) - - - 900,726 2.0 4.00%
Weaved 05.10.2015 27,277 - - - - - - 27,277 1.0 7.70%
Send a Job 16.05.2016 - 150,000 3000 (933) - - - 152,067 2.0 4.00%
Vinebox 06.05.2016 - 300,000 - - - - - 300,000 - -
Sixa 28.07.2016 - 300,000 - - - - - 300,000 - -
Virool 16.08.2016 - 200,000 - - - - - 200,000 - -
------------ ------------
Total 2,202,649 1,650,000 3,000 (4,900) 19,415 (219,568) - 3,650,596
-------------------------- ---------- ------------ ------------ ---------- ----------- ----------- ----------- ---------- ------ ---------
11 Trade and other receivables
At 31 December 2016 At 31 December 2015
USD USD
----------------------------------------- -------------------- --------------------
Prepayments 19,269 15,174
Interest receivable on promissory notes 192,348 163,165
Interest receivable on deposits 300 301
Loans to portfolio companies 15,000 -
226,917 178,640
----------------------------------------- -------------------- --------------------
12 Cash and cash equivalents
The cash and cash equivalents as at 31 December 2016 include cash on hand and in banks, deposits, net of outstanding bank overdrafts. The effective interest rate at 31 December 2016 was 0.7%.
Cash and cash equivalents comprise the following:
At 31 December 2016 At 31 December 2015
USD USD
--------------- -------------------- --------------------
Deposits 500,000 500,000
Bank balances 557,098 659,789
--------------- -------------------- --------------------
1,057,098 1,159,789
--------------- -------------------- --------------------
The following table represents an analysis of cash and equivalents by rating agency designation based on Fitch rating or their equivalent:
At 31 December 2016 At 31 December 2015
USD USD
--------------- -------------------- --------------------
Bank balances
BBB+ rating 557,098 659,789
--------------- -------------------- --------------------
557,098 659,789
--------------- -------------------- --------------------
Deposits
BBB rating 500,000 500,000
--------------- -------------------- --------------------
500,000 500,000
--------------- -------------------- --------------------
1,057,098 1,159,789
--------------- -------------------- --------------------
13 Trade and other payables
At 31 December 2016 At 31 December 2015
USD USD
--------------------------- -------------------- --------------------
Directors' fees payable 33,825 7,471
Trade payables 16,275 6,992
Other current liabilities 914 92
Accrued expenses 21,197 24,822
--------------------------- -------------------- --------------------
72,211 39,377
--------------------------- -------------------- --------------------
14 Other payables
At 31 December 2016 At 31 December 2015
USD USD
------------------------------ -------------------- --------------------
Other non-current liabilities 639,855 -
639,855 -
------------------------------ -------------------- --------------------
15 Share capital
On 31 December 2016 the Company had an authorised share capital of unlimited shares of no par value and had issued share capital of:
At 31 December 2016 At 31 December 2015
USD USD
----------------------------- -------------------- --------------------
Share capital 31,453,510 31,453,510
Issued capital comprises: Number Number
Fully paid ordinary shares 27,744,962 27,744,962
----------------------------- -------------------- --------------------
Number of shares Share capital,
USD
----------------------------- -------------------- ----------------------
Balance at 31 December 2015 27,744,962 27,744,962
Balance at 31 December 2016 27,744,962 27,744,962
----------------------------- -------------------- ----------------------
There have been no changes to the Company's share capital between the year-end date and the date of approval of these financial statements.
16 Share-based payments
For the year ended 31/12/2016 For the year ended 31/12/2015
USD USD
------------------------------------- ------------------------------- ------------------------------
Share option (compensation expense) - 45,028
------------------------------------- -------------------------------- ------------------------------
Total share-based payment charge - 45,028
------------------------------------- -------------------------------- ------------------------------
On 24 October 2012, the Board of Directors approved a share option plan (the "Plan") for directors, officers, employees of or consultants to the Company and/or any company directly or indirectly controlled by the Company.
Under the Plan, options for a total of 7,500,000 ordinary shares in the Company, representing approximately 30% of the then issued share capital (or 23% of the enlarged share capital at the time, assuming full exercise of the options), could be made available at an exercise price determined by the Board or its remuneration committee, which would not be less than the closing middle market price for the Company's share on AIM on the date of grant as published by or on behalf of the London Stock Exchange plc.
Options were to vest on a daily basis over a period of 3 years whilst the option holder remains eligible, and vested options could be exercised on each anniversary of the grant, but if not exercised within 1 year from the allowable date of exercise, would lapse.
None of the options that vested in Year 3 under the Plan were exercised, and those options have now lapsed.
17 Reserves
Share-based payment Fair value reserve Retained gain/ (losses) Total
reserve USD USD USD
USD
---------------------------- --------------------------- ------------------- ------------------------ ------------
Balance as at 1 January
2015 392,659 10,108,618 (4,269,479) 6,231,798
---------------------------- --------------------------- ------------------- ------------------------ ------------
Loss for the year - - (3,250,752) (3,250,752)
Gain from changes in fair
value - 18,505,974 - 18,505,974
Share-based payment charge 45,028 - - 45,028
Transfer on lapse of share
options (272,233) - 272,233 -
Balance as at 31 December
2015 165,454 28,614,592 (7,247,998) 21,532,048
----------------------------
Gain for the year - - 1,763,327 1,763,327
Gain from changes in fair
value - 584,032 - 584,032
Share-based payment charge - - - -
Dividends paid - - (2,774,496) (2,774,496)
Transfer on lapse of share
options (165,454) - 165,454 -
Previous year adjustments - 195,150 (195,150) -
---------------------------- --------------------------- ------------------- ------------------------ ------------
Balance as at 31 December
2016 - 29,393,774 (8,288,863) 21,104,911
---------------------------- --------------------------- ------------------- ------------------------ ------------
18 Capital management
The capital structure of the Company consists of equity share capital, reserves, and retained losses.
The Board's policy is to maintain a strong capital base so as to maintain investor and market confidence and to enable the successful future development of the business.
The Company is not subject to externally imposed capital requirements.
No changes were made to the objectives, policies and process for managing capital during the year.
19 Financial risk management and financial instruments
The Company has identified the following risks arising from its activities and has established policies and procedures to manage these risks. The Company's principal financial assets are cash and cash equivalents, investments in equity shares, and convertible notes receivable.
Credit risk
As at 31 December 2016 the largest exposure to credit risk related to cash and cash equivalents, which was US$1,057,098. The exposure risk is reduced because the counterparties are banks with high credit ratings ("BBB" Liquidity banks) assigned by international credit rating agencies. The Directors intend to continue to spread the risk by holding the Company's cash reserves in more than one financial institution.
(i) Exposure to credit risk
The carrying amount of the following assets represents the maximum credit exposure. The maximum exposure to credit risk as at 31 December is as follows:
At 31 December 2016 At 31 December 2015
USD USD
------------------------------ -------------------- --------------------
Convertible notes receivable 3,650,596 2,202,649
Trade and other receivables 226,917 178,640
Cash and cash equivalents 1,057,098 1,159,789
------------------------------ -------------------- --------------------
4,934,611 3,541,078
------------------------------ -------------------- --------------------
Market risk
The Company's financial assets are classified as available-for-sale and are measured at fair value. The measurement of the Company's investments in equity shares and convertible notes is largely dependent on the underlying trading performance of the investee companies, but the valuation and other items in the financial statements can also be affected by the interest rate and fluctuations in the exchange rate.
Interest rate risk
Changes in interest rates impact primarily cash and cash equivalents by changing either their fair value (fixed rate deposits) or their future cash flows (variable rate deposits). Management does not have a formal policy of determining how much of the Company's exposure should be to fixed or variable rates.
At 31 December 2016 the Company had a cash deposit of US$ 500,000, earning a variable rate of interest. The Board of Directors monitors the interest rates available in the market to ensure that returns are maximized.
Foreign currency risk management
The Company is exposed to foreign currency risks on investments and salary and director remuneration payments that are denominated in a currency other than the functional currency of the Company. The currency giving rise to this risk is primarily GBP, EUR. The exposure to foreign currency risk as at 31 December 2016 was as follows:
For the year For the For the year For the year
ended 31/12/2016 year ended ended 31/12/2015 ended 31/12/2015
31/12/2016
GBP EUR GBP EUR
Current assets
Cash and cash equivalents 77,932 163,983 106,694 8,468
Current liabilities
Trade and other payables (35,155) - (31,376) -
Net (short) long position 42,777 163,983 75,318 8,468
Net exposure currency 34,813 155,062 50,824 7,744
Net exposure currency
(assuming a 10% movement
in exchange rates) 38,500 147,585 67,786 7,621
Impact on exchange
movements in the statement
of comprehensive income 4,277 16,398 7,532 847
The foreign exchange rates of the USD at 31 December were as follows:
31/12/2016 31/12/2015
----------------------- ----------- -----------
Currency
British pounds, GBP 1.2288 1.4819
Euro, EUR 1.0575 1.0934
----------------------- ----------- -----------
This analysis assumes that all other variables, in particular interest rates, remain constant.
Liquidity risk management
The Company's approach to managing liquidity is to ensure that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company.
The Company has low liquidity risk due to maintaining adequate banking facilities, by continuously monitoring actual cash flows and by matching the maturity profiles of financial assets and current liabilities.
As at 31 December 2016, the cash and equivalents of the Company were US$1,057,098.
The following are the maturities of current liabilities as at 31 December 2016:
Carrying amount Within one year 2-5 years More than 5 years
USD USD USD USD
--------------------------- ---------------- ---------------- ---------- ------------------
Directors' fees payable 33,825 33,825 - -
Trade payables 16,275 16,275 - -
Other current liabilities 22,111 22,111 - -
--------------------------- ---------------- ---------------- ---------- ------------------
72,211 72,211 - -
--------------------------- ---------------- ---------------- ---------- ------------------
The following are the maturities of non-current liabilities as at 31 December 2016:
Carrying amount Within one year 2-5 years More than 5 years
USD USD USD USD
------------------------------- ---------------- ---------------- ---------- ------------------
Other non-current liabilities 639,855 - 639,855 -
------------------------------- ---------------- ---------------- ---------- ------------------
639,855 - 639,855 -
------------------------------- ---------------- ---------------- ---------- ------------------
20 Related party transactions
Since May 2012, TMT's Moscow-based staff have been located in an office that belongs to a cooperative ("Orgtekhnika") of which the Company's senior managers Alexander Morgulchik and German Kaplun are members. German Kaplun also owns 19.28% of the issued share capital of TMT. Thus Orgtekhnika is considered a related party. Together with other related expenses (support personnel, company car, security services, etc.), the total office rent costs to TMT from 1 February 2015 were US$7,000 per month, and from 1 February 2016 temporarily reduced to zero.
21 Subsequent events
TMT's founders and senior managers German Kaplun, Artyom Inyutin and Alexander Morgulchik agreed to defer half of their respective 2017 salaries (a total of US$150,000) until 31 December 2019.
22 Control
The Company is not controlled by any one party. Details of significant shareholders are shown in the Directors' Report.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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