Share Name Share Symbol Market Type Share ISIN Share Description
Ganapati Plc NEX:GANP NEX Ordinary Share GB00BYTQ4P91
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 3.00 1.00 5.00 3.00 3.00 3.00 0.00 07:56:02
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
- - - -

Ganapati plc Unaudited Interim Results Six Months Ended 31 July 2019

31/10/2019 3:02pm

UK Regulatory (RNS & others)

31 October 2019 
                                 Ganapati Plc 
                         ("Ganapati" or "the Company") 
        Unaudited Interim Results for the Six Months Ended 31 July 2019 
Ganapati today announces its unaudited interim results for the six months ended 
31 July 2019. 
Chairman's Statement 
Review of the Six Months Period ended 31 July 2019 
Following its early development of software for the social media and consumer 
markets, Ganapati is continuing this business and over the last three years has 
expanded into the development and creation of products and services for the 
iGaming sector. Its online games with multiple popular content utilise its 
knowledge of Japanese history and culture. Ganapati directors are becoming 
recognised as pioneers of this global industry. In the six months to 31 July 
2019 the Company launched nine new online casino games which are being offered 
to integrated Operators and available to play on iGaming Operators platforms. 
The Company now has 25 online casino games 
Financial Review 
The unaudited results for the six-month period ended 31 July 2019 show a loss 
of (GBP9,602,186) (six months to 31 July 2018: (GBP3,555,475). The loss per share 
was (30p) (six months to 31 July 2018: (11p).  This increase is predominantly 
due to the increases in labour costs and rents. 
Total income was GBP2,330,813 (six months to 31 July 2018: GBP2,192,619). Net 
liabilities at the end of the period under review were GBP74,250,542 (six months 
to 31 July 2018: GBP35,455,955). The increase in Net Liabilities is due to the 
sales of utility tokens which were issued from GanaEight Coin Limited ("G8C") 
as part of a pre-sale prior to the authorisation and publication of the 'White 
Paper'. Until the White Paper is approved by the Malta Financial Services 
Authority ("MFSA") the token sales are being treated as customer advances in 
the balance sheet. 
The Company continues to issue short-term bonds, which are exclusively 
purchased by Japanese high-net worth investors. These have a three-year 
maturity date with an option to renew for a further year. As the early bonds 
issued come up for renewal, many investors are agreeing an extension of their 
Our wholly-owned subsidiary company, GanaEight Coin Limited, through its fellow 
subsidiary GPJ Venture Capital LLC, is continuing the Token Pre-sale via an 
Initial Virtual Financial Asset Offering to fund the development of a 
blockchain platform and its associated token and wallet. As explained below, 
the sale of tokens is being shown as a liability in the balance sheet until the 
authorisation of the G8C 'White Paper' by the Malta Financial Services 
Review of Operations 
The Company remains committed to the development of the Mobile Application, 
BUZZPOP and continues to develop the market for this product in Japan. In the 
iGaming sector Ganapati are issuing between one and two new games per month and 
currently has 25 games in circulation. After the conclusion of the period under 
review the Company announced on the 8 August 2019, that its wholly-owned 
subsidiary company, Ganapati (Malta) Ltd., had signed an agreement for the 
supply of its games, and software support to integrated operators. The Company 
continues to expand its revenue sharing agreements and has achieved multiple 
agreements with various iGaming Operators during both periods under review. The 
partnership agreements will allow Ganapati to integrate its content and is made 
available to online gaming and casino services via market leading gaming 
aggregation platforms and Operators.  Your Directors expect to be able to 
negotiate further such agreements in due course. 
GanaEight Coin Limited 
In the Chairman's Statement for the accounts to 31 January 2019 it was stated 
that 'Application for the  GanaEight Coin Limited's ("G8C") Virtual Financial 
Asset ("VFA") to be admitted to trading on the Distributed Ledger Technology 
Exchange is expected to be made with the Malta Financial Services Authority 
("MFSA") in the third quarter of 2019. 
The MFSA has experienced a series of delays but has now started to officially 
accept applications for registration as VFAs. At the date of this Statement, 
they have not, as yet, issued any decisions on applications submitted. G8C is 
expecting to submit within fourth quarter. The Directors continue to develop 
the final White Paper in preparation for submission to the MSFA. In addition, 
this work is being reviewed and monitored by Grant Thornton Malta, who are 
Ganapati's VFA agent in Malta.  The Directors are committed to progress the 
development of the blockchain platform to ensure the G8C Information Security 
and smart contract blue print framework complies with the ongoing obligations 
for VFA service providers. The tokens will be used as a payment and utility 
function for online casino participants on Ganapati's own blockchain platform 
or via various casino sites. 
Board Changes 
On 7 February 2019, Mr Yutaka Iwakiri was appointed a director of the Company 
and has assumed the role of Chief Product Officer. On 31 May 2019, Mr Taku 
Sawada resigned as a Director of the Company in order to pursue his own 
business interests. After the end of the period under review, and on 25 
September 2019, Juliet Adelstein was appointed a director of the Company and as 
Chief Operating Officer. 
Risk Assessment 
Your Directors continue to maintain the strict monitoring of possible risks to 
a loss in value of the shares of the Company. These include: 
  * Further delays by the MFSA in approving VFA applications 
  * Changes in legislation affecting the pre-sale of tokens 
  * The failure to achieve revenue forecasts for the sale of the Company's 
The Company continues to develop the identity of its iGaming products and is 
commencing the development of the casino platform which will utilise the G8C 
tokens.  In addition, it continues to promote its products at iGaming events 
around the world to develop its global presence. The Directors believe that the 
unique visuality of the products and the heritage of the Japanese culture are 
key competitive advantages in the sector and are looking forward to the 
continued development and advancement of the products. 
Tony Drury 
31 October 2019 
The directors of Ganapati Plc accept responsibility for this announcement. 
Ganapati Plc 
Tony Drury 
Telephone: 07973 737284 
Alexander David Securities Limited 
David Scott -Corporate Finance 
James Dewhurst - Corporate Broking 
Telephone: +44 (0) 20 7448 9820 
49 Queen Victoria Street, London EC4N 4SA 
Consolidated Income Statement 
For the six months ended 31 July 2019 
                                                 Unaudited     Unaudited       Audited 
                                                  6 months      6 months    year ended 
                                                     ended         ended 
                                               31 Jul 2019   31 Jul 2018   31 Jan 2019 
                                                         GBP             GBP             GBP 
Continuing operations 
Revenue                                          2,330,813     2,192,619     3,175,665 
Cost of sales                                     (44,935)             -             - 
Gross profit                                     2,285,878     2,192,619     3,175,665 
Administrative expenses                       (11,510,280)   (5,321,902)  (35,979,740) 
Other income                                       729,137       520,438     1,147,446 
Operating loss                                 (8,495,265)   (2,608,845)  (31,656,629) 
Interest income                                         16             3            13 
Interest costs                                           -      (51,221)     (133,901) 
Loss before income tax                         (8,495,249)                (31,790,517) 
Income tax                                     (1,106,937)     (800,442)   (1,717,869) 
Loss for the financial period                  (9,602,186)   (3,460,505)  (33,508,386) 
Loss for the financial period attributable 
-Owners of the parent company                  (9,610,357)   (3,460,505)  (33,521,640) 
-Non-controlling interests                           8,171      (94,970)        13,254 
                                               (9,602,186)   (3,555,475)  (33,508,386) 
Basic loss per share, pence                         (30) p        (11) p       (105) p 
Consolidated Statement of Comprehensive Income 
For the six months ended 31 July 2019 
                                                Unaudited     Unaudited       Audited 
                                                 6 months      6 months    year ended 
                                                    ended         ended 
                                              31 Jul 2019   31 Jul 2018   31 Jan 2019 
                                                        GBP             GBP             GBP 
Loss for the period                           (9,602,186)   (3,555,475)  (33,508,386) 
Other comprehensive income                              -             -             - 
Items that may be subsequently 
reclassified as 
profit or loss 
Exchange differences on translation of            162,310             -             - 
Total comprehensive loss for the period       (9,439,876)   (3,555,475)  (33,508,386) 
Attributable to: 
-Owners of the parent company                 (9,448,047)   (3,460,505)  (33,521,640) 
-Non-controlling interests                          8,171      (94,970)        13,254 
                                              (9,439,876)   (3,555,475)  (33,508,386) 
Consolidated statement of changes in equity 
For the six months ended 31 July 2019 
                Ordinary     Share  Capital  Foreign     Retained              Non-controlling        Total 
                   share   premium  reserve currency      deficit        Total        interest       Equity 
                 capital                     reserve               controlling 
                       GBP         GBP        GBP        GBP            GBP            GBP               GBP            GBP 
Balance at 31    319,926   396,526        -        - (32,726,027) (32,009,575)         109,095 (31,900,480) 
January 2018 
Loss and total         -         -        -        - (33,521,640) (33,521,640)          13,254 (33,508,386) 
income for the 
Debt-equity                         598,200        -            -      598,200               -      598,200 
At Balance at    319,926   396,526  598,200        - (66,247,667) (64,933,015)         122,349 (64,810,666) 
31 January 
Loss for the           -         -        -        -  (9,610,357)  (9,610,357)           8,171  (9,602,186) 
Exchange               -         -        -  162,310            -      162,310               -      162,310 
differences on 
translation of 
Total                                        162,310  (9,610,357)  (9,448,047)           8,171  (9,439,876) 
income for the 
At Balance at    319,926   396,526  598,200  162,310 (75,858,024) (74,381,062)         130,520 (74,250,542) 
31 July 2019 
Consolidated Balance Sheet 
As at 31 July 2019 
                                                  Unaudited    Unaudited       Audited 
                                                   6 months     6 months    year ended 
                                                      ended        ended 
                                                31 Jul 2019  31 Jul 2018   31 Jan 2019 
                                       Notes              GBP            GBP             GBP 
Non-current assets 
System development                               16,806,807   19,154,071    12,212,259 
Purchased intangible assets                               -      243,590         2,487 
Goodwill                                            105,843            -       105,843 
Tangible assets                                     698,865            -       336,536 
                                                 17,611,515   19,397,661    12,657,125 
Current assets 
Debtors                                          18,837,982    2,947,678     3,536,504 
Inventory                                           701,802            -             - 
Cash and cash equivalents                         3,151,862    2,006,593     2,164,905 
                                                 22,691,646    4,954,271     5,701,409 
Current liabilities 
Creditors                                      (38,344,765)  (3,856,673)  (14,566,073) 
                                               (38,344,765)  (3,856,673)  (14,566,073) 
Net current assets                             (15,653,119)    1,097,598   (8,864,664) 
Total assets less current liabilities             1,958,396   20,495,259     3,792,461 
Non-current liabilities 
Loans                                          (76,208,938) (55,951,214)  (68,603,127) 
                                               (76,208,938) (55,951,214)  (68,603,127) 
Net assets                                     (74,250,542) (35,455,955)  (64,810,666) 
Ordinary share capital                   3          319,926      319,926       319,926 
Share premium                                       396,526      396,526       396,526 
Capital reserve                                     598,200            -       598,200 
Foreign currency reserve                            162,310            -             - 
Non-controlling interest                            130,520       14,125       122,349 
Retained deficit                               (75,858,024) (36,186,532)  (66,247,667) 
Total equity                                   (74,250,542) (35,455,955)  (64,810,666) 
Consolidated Cash Flow Statement 
For the six months ended 31 July 2019 
                                                     Unaudited     Unaudited      Audited 
                                                      6 months      6 months   year ended 
                                                         ended         ended 
                                                   31 Jul 2019   31 Jul 2018  31 Jan 2019 
                                                             GBP             GBP            GBP 
Loss for the period                                (9,602,186)   (3,460,505) (33,508,386) 
Adjusted for: 
Depreciation charge                                     29,179        12,456       48,500 
Amortisation & impairment of intangibles             1,278,580             -    3,090,368 
Finance income                                            (16)           (3)         (13) 
Finance cost                                                 -        51,221      133,901 
Tax charge                                           1,106,937       800,442    1,717,869 
Non-controlling interest                                     -      (94,970)            - 
                                                   (7,187,506)   (2,691,359) (28,517,761) 
Working capital adjustments: 
Decrease/(increase) in trade and other             -16,003,280     (379,803)    (968,599) 
Increase in trade and other payables                11,324,710     1,062,438    5,657,185 
                                                   (4,678,570)   (2,008,724)  (4,688,586) 
Taxation paid                                                -     (812,898)            - 
Net Interest paid                                            -      (51,218)            - 
Net cash used in operating activities             (11,866,076)   (2,872,840) (23,829,175) 
Payments to acquire intangible assets              (4,594,548)   (4,614,805)    (767,619) 
Payments to acquire tangible assets                  (391,508)             -    (137,189) 
Net cash used in investing activities              (4,986,056)   (4,614,805)    (904,808) 
Issue of shares                                              -             -            - 
New loans/ bonds                                     5,385,108     8,183,008   19,997,701 
Customer advances                                   12,453,981             -    5,589,957 
Net cash generated by financing                     17,839,089     8,183,008   25,587,658 
Increase / (decrease) in cash                          986,957       695,363      853,675 
Cash at the beginning of the year                    2,164,905     1,311,230    1,311,230 
Cash at the end of the year                          3,151,862     2,006,593    2,164,905 
Summary of significant accounting policies 
1.    Interim accounts 
The financial information set out in this interim report does not constitute 
statutory accounts as defined in section 434 of the Companies Act 2006.  The 
group's statutory financial statements for the year ended 31 January 2019, 
prepared under FRS 102, have been filed with the Registrar of Companies.  The 
auditor's report on those financial statements was unqualified and did not 
contain a statement under section 498 (2) or (3) of the Companies Act 2006. 
Copies of the interim report are available to view and download from the 
Company's website: 
2.    Accounting policies 
The interim financial information has been prepared in accordance with the 
recognition and measurement principles of FRS 102, including Financial 
Reporting Standard 104, "Interim Financial Reporting", and on the same basis 
and using the same accounting policies as used in the financial statements for 
the year ended 31 January 2019. 
The interim financial statements have not been audited or reviewed in 
accordance with the International Standard on Review Engagement 2410 issued by 
the Auditing Practices Board. 
The financial statements have been prepared on a going concern basis under the 
historical cost convention. The Directors believe that the going concern basis 
is appropriate for the preparation of the financial statements as the Company 
is in a position to meet all its liabilities as they fall due. 
3.    Share capital 
                                                            Share Share premium 
                                                                GBP             GBP 
                                                          319,926       396,526 
Allotted, called up and fully paid 31,992,649 
ordinary shares of 1p each 
                                                          319,926       396,526 
4.    Loss per share 
The basic loss per share is calculated by dividing the loss attributable to 
equity shareholders by the weighted average number of shares in issue. 
                                             Unaudited    Unaudited      Audited 
                                              6 months     6 months   year ended 
                                                 ended        ended 
                                           31 Jul 2019  31 Jul 2018  31 Jan 2019 
Weighted average number of shares in        31,992,649   31,992,649   31,992,649 
the period 
Total loss attributable to equity          (9,610,357)  (3,460,505) (33,521,640) 
shareholders of the Company (GBP) 
                                                (30) p       (11) p      (105) p 
Basic loss per share: 
5.    Dividends 
No interim dividend will be paid. 

(END) Dow Jones Newswires

October 31, 2019 11:02 ET (15:02 GMT)

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