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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Fairfx Group Plc | LSE:FFX | London | Ordinary Share | GB00BLS0XX25 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 124.50 | 124.00 | 125.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMFFX
RNS Number : 9308B
FAIRFX Group PLC
26 September 2018
26 September 2018
FairFX Group plc
("FairFX" or "the Group" or "the Company")
Interim Results for the six months ended 30 June 2018
Strong Half Year Profit and continued growth despite Sterling weakness
FairFX, the e-banking and international payments group, announces its interim results for the six months ended 30 June 2018.
Financial highlights:
-- Group turnover(1) of GBP1,067.4 million (H1 2017: GBP434.8 million), an increase of 146% (23% on a like-for-like basis)
-- Group revenue of GBP12.0 million (H1 2017: GBP6.1 million), an increase of 97% (15% on a like-for-like basis)
-- Gross profit of GBP9.7 million, an increase of 100% (H1 2017: GBP4.8 million) -- Adjusted EBITDA(2) of GBP2.7 million (H1 2017: GBP0.2 million) -- Adjusted PBT(3) of GBP2.6 million (H1 2017: GBP0.2 million) -- Adjusted net profit margin increases by a factor of 10 to 21.9% (H1 2017: 2.7%)
(1) Turnover is measured by gross value of currency transactions sold of GBP805.0 million plus gross value of deposits into bank accounts of GBP262.4 million for a total of GBP1,067.4 million
(2) Adjusted EBITDA is earnings before interest, tax, depreciation and amortisation charges, acquisition-related expenses, share-based payments and foreign exchange gains and losses
(3) Adjusted PBT is profit before tax, acquisition-related expenses, amortisation of acquisition intangibles, share-based payments and exchange rate gains or losses
Operational highlights:
-- Acquisition of City Forex providing economies of scale -- Successful migration of FairFX international payments to City Forex Platform -- Commencement of self-issuance of cards under Mastercard membership -- Corporate card turnover growth of 28% to GBP74.8 million (H1 2017: GBP58.7 million) -- Launch of Fair Everywhere business current account
-- Including customers acquired as part of City Forex acquisition, there have been 182,171 new customers added to the business bringing the total number of customers to 911,156.
Post-Period End:
-- 1 million customer milestone passed
-- Strong start to H2 with turnover in July and August up 152% year on year (23% on a like for like basis)
-- Strong performance despite tough macro environment for travel money products - weak Sterling, Brexit, hot UK summer
-- International Payments up 146% year on year (41% on a like for like basis) -- Corporate expense platform up 41% with growth rate accelerating -- Commencement of transfer of Corporate platform to new supply chain -- New Corporate expenses app with receipt upload and VAT reporting established -- Continued focus on sustainable turnover growth and rationalisation of supply chain
-- FairFX Ireland to be expanded and regulated to cover Brexit risk and reduce reliance on strength of the Pound
Commenting on the results and outlook, Chief Executive Officer of FairFX, Ian Strafford-Taylor, said:
"The business has delivered an excellent first half performance both operationally and in terms of bottom-line. Top line turnover growth has continued, and with the Group operationally geared revenue is increasingly flowing through to profit. This trend is expected to continue in the second half of the year as we grow further and rationalise the supply chain. Achieving this performance against a backdrop of weak Sterling, combined with less people taking holidays in 2018 due to the warm summer in the UK, bears testament to the great strides we have made in recent years to broaden the product mix and reduce our reliance on revenues from foreign exchange.
"The outlook for the Group for the balance of the year remains positive despite Brexit weighing on Sterling and providing a headwind. We are actively improving the supply chain both in terms of robustness and improved economics, which we strongly believe will feed through in the second half. We also have an exciting pipeline of product enhancements for the remainder of 2018, and we look forward to updating the market in due course.
"Against this background, we remain confident that the full year results will be in line with expectations."
Contact:
FairFX Group plc Ian Strafford-Taylor, CEO +44 (0) 20 7778 9308 Cenkos Securities plc Max Hartley/Callum Davidson +44 (0) 20 7397 8900 Yellow Jersey Charles Goodwin +44 (0) 7747 788 221 Abena Affum +44 (0) 7555 159 808 Katie Bairsto +44 (0) 7946 424 651
Operational Summary
The overall operating environment for FairFX in the first half of 2018 was characterised by a generally weaker Pound trapped in a narrow range, as Brexit continued to dominate customer sentiment. This environment has continued into the second half of the year and serves to reinforce the Group's strategy to diversify its revenue stream from a reliance on Sterling strength. The success of this strategy was demonstrated in H1, with 31.7% of turnover deriving from non-FX activities compared with 13.6% in the same period in 2017. Against this backdrop, the business has performed very well, delivering continued strong growth.
In February 2018, the Group acquired City Forex which offered two key products: International Payments and Travel Currency. City Forex serviced both private client and corporate customers through its proprietary platform and its three central London-based branches. The proprietary platform processes the Travel Currency and International Payments businesses with a high degree of automation and as such, it has now become the Group's platform for international payments. Significantly, the Group's international payments business migrated onto the platform within ten weeks of the acquisition being finalised. The integration of the acquisition has been completed successfully and FairFX has been able to effectively benefit from the synergies created across the Group.
The theme of improving user-experience (UX) remained a key focus in the first half. The Group has aligned its engineering, product and design teams by individual product stream, and the benefits of this are now flowing through with innovation in new products and further enhancements to UX. In particular, new functionality and improved UX was implemented in the Corporate Expense platform with a complete re-design of the site and improved statement and search functionality, which has underpinned its growth in the first half of the year and beyond. In addition, the Group made significant progress on upgrading its overall engineering platform and rationalisation of the supply chain in line with the stated strategy. These major infrastructure projects are now delivering results in terms of internal efficiency and cost savings.
Within the Banking division, a key milestone achieved was the commencement of self-issuance of CardOne Banking Corporate cards in April, which was made possible after the Group's e-money licence was combined with full Mastercard membership granted at the end of 2017. On a wider scale, self-issuance allows the Group to consider multiple options for the issuance of cards across its entire product suite and delivers the stated objective of achieving increasing economies of scale, whilst selectively internalising appropriate parts of the value chain. In addition, within the Banking division, the Fair Everywhere business account was launched at the end of the first half, bringing together the expertise of FairFX in international payments and CardOne's banking capabilities. The account is designed to make global business banking easier, faster and cheaper for those that don't want borders to limit their business ambitions. Since the launch, the product has been further refined and a strong pipeline of development is planned in Banking for the rest of 2018 and beyond.
Financial Review
The Group delivered another strong period of growth during the first half of the year whilst maintaining individual product margins which resulted in a substantial increase in profitability. Group turnover grew to GBP1,067.4 million in the first half (2017 GBP434.8 million) representing an increase of 145% and 23% on a like-for-like basis. The key areas of growth continued to be the Corporate Platform, which grew 28% and International Payments which grew 131% and 39% on a like-for-like basis (pre-acquisition of City Forex).
Group revenue increased by 97% to GBP12.0m (2017: GBP6.1m) and on a like for like basis increased by 15% to GBP7.0m (2017: GBP6.1m). The percentage increase in Revenues, both on a Group level and on a like for like basis is lower than the turnover percentage growth as a major part of the growth is, as expected, in International Payments and Corporate card products which have lower margins than retail cards.
Gross profit doubled to GBP9.7 million (H1 2017: GBP4.8 million), ahead of revenue growth, as a consequence of the effects of supply-chain rationalisation and better management of direct costs. The Group's operating expenses increased by 58% on prior period last year, significantly lower than the gross profit percentage increase.
As illustrated in the table below, the Company achieved an adjusted PBT in the first half of GBP2.6 million (H1 2017: GBP0.2 million), demonstrating the Group's operational gearing and ability to take advantage of further growth. As a result of the significant increase in profitability, the statutory EPS increased to GBP1.41 (2017: GBP0.14).
Hot Features
Premium
Adjusted EBITDA/PBT Calculation 2018 H1 GBP 2017 H1 GBP 2017 GBP
Statutory Net Profit 2,083,559 150,392 447,137
Amortisation of acquisition
intangibles 310,100 - 220,325
Other amortisation charges - - 792
Depreciation costs 86,011 15,108 51,726
Tax credit (58,919) - (217,687)
------------ ------------ ----------
EBITDA 2,420,750 165,501 502,292
Acquisition-related costs 227,752 - 269,769
Share-based payments 24,000 64,539 112,961
Foreign exchange loss /
(gain) (10,373) (47,076) 68,186
Adjusted EBITDA 2,662,129 182,964 953,208
Depreciation costs (86,011) (15,108) (51,726)
Other amortisation charges - - (792)
Adjusted PBT 2,576,118 167,856 900,690
------------ ------------ ----------
The Company's balance sheet remains healthy with net assets of GBP 37.1million (H1 2017: GBP4.9 million), whilst cash and cash equivalents (excluding client money) totalled GBP10.7 million (H1 2017 GBP3.6 million).
Current Trading and Outlook
FairFX continues to build on the significant growth achieved in 2017 and the first half of 2018, with total turnover for July and August of GBP472.0 million, up 152% on the same period last year and 23% on a like-for-like basis.
Growth continues to be strongest in International Payments and Corporate Expenses product lines, up 146% and 41% respectively in the 2-month period.
The Corporate expense product has had new functionality deployed, including multi-card top-up, a receipt upload functionality, VAT reporting plus the ability to annotate expenses on-the-go via the App. These product enhancements have helped the year-to-date growth rate accelerate to 31.4% at the end of August. In addition, the Group has now commenced the roll-out of the new supply chain for the Corporate card which is expected to result in a higher revenue stream and reduced costs for the product.
Retail travel money products (cards and cash) have been impacted by a number of macro-factors in 2018 to-date. An exceptionally hot summer in the UK meant that many people elected not to take overseas holidays. This can be seen in the results from various tour operators. In addition, the impact of the Football World Cup on viewing audiences and the effects of a weaker Pound provided headwinds. Despite these factors, the retail products are running parallel to last year both in terms of spend on the cards and customer acquisition, and FairFX already has new product enhancements in the development pipeline.
In International Payments, FairFX has made further system enhancements based on the City Forex platform which have eliminated many operational inefficiencies across the Group. The focus of the International Payments team is to work on the customer-facing UX for the platform, and to add new functionality. In addition, the Group has commenced the process of becoming a direct member of SWIFT which will further improve efficiency and reliance on third party infrastructure.
The Group has now started the process of upgrading it's registered FairFX Ireland entity to be a full-service operation with authorised payment institution (API) status. The original driver of this entity was to diversify the revenue streams in FX, such that the Group relies less on Sterling strength, and thus, it already has a live online presence. FairFX is now accelerating this process to provide its full suite of services out of the Irish subsidiary. This also has the added benefit of providing a natural hedge for all the various potential outcomes of the Brexit process.
The focus for the second half of 2018 will be to continue the strategy of extracting efficiencies via scale whilst evolving the banking products for SME's. In addition, the Group will be continuing to identify and maximise the numerous cross-selling opportunities.
Accordingly, the Board of FairFX continues to be confident of meeting market expectations for the full year.
FairFX group PLC
consolidated statement of COMPREHENSIVE INCOME
Notes Unaudited Unaudited Audited
6 Months 6 Months Year
Ended Ended Ended
30-Jun-18 30-Jun-17 31-Dec-17
GBP GBP GBP
Gross value of currency
transactions sold 805,293,495 434,052,907 936,593,130
Gross value of currency
transactions purchased (796,327,938) (427,948,544) (923,028,865)
Revenue on currency transactions 8,965,558 6,104,363 13,564,265
Banking revenue 3,057,739 - 1,896,470
Revenue on currency transactions 4 12,023,297 6,104,363 15,460,735
Direct costs (2,328,410) (1,256,949) (3,525,675)
Gross margin 9,694,887 4,847,414 11,935,059
Administrative expenses (7,442,495) (4,697,022) (11,435,841)
Acquisition expenses (227,752) - (269,769)
Profit / (loss) before
tax and from operations 2,024,640 150,392 229,449
Tax credit 5 58,919 - 217,687
Profit / (loss) for the
period / year 2,083,559 150,392 447,137
Profit / (loss) per share
Basic 6 1.41p 0.14p 0.37p
Diluted 6 1.38p 0.14p 0.36p
All amounts relate to continuing activities.
FairFX group PLC
consolidated statement of FInancial POSITION
Unaudited as at Unaudited Audited as
as at at
30-Jun-18 30-Jun-17 31-Dec-17
GBP GBP GBP
ASSETS
Non-current assets
Property, plant and equipment 603,246 199,275 137,580
Intangible assets and goodwill 24,622,318 424,578 17,649,128
Deferred tax asset 511,912 - 511,912
25,737,476 623,853 18,298,620
Current assets
Inventories 239,763 281,590 199,747
Trade and other receivables 4,252,944 2,926,734 3,779,768
Derivative financial assets 279,522 205,910 303,775
Cash and cash equivalents 57,809,546 7,025,332 51,950,729
62,581,775 10,439,566 56,234,019
TOTAL ASSETS 88,319,251 11,063,419 74,532,639
EQUITY AND LIABILITIES
Equity attributable to Equity holders
Share capital 1,553,682 1,038,401 1,553,682
Share premium 35,858,770 10,482,032 35,858,770
Share based payment reserve 1,168,832 732,961 1,144,832
Merger reserve 8,395,521 5,416,083 8,395,521
Contingent consideration reserve 543,172 - 543,172
Retained deficit (10,366,986) (12,747,290) (12,450,546)
37,152,991 4,922,187 35,045,431
Non-Current liabilities
Deferred tax liability 261,206 - 673,661
261,206 - 673,661
Current liabilities
Trade and other payables 50,664,514 6,065,990 38,550,504
Deferred tax liability 117,838 - 117,838
Derivative financial liabilities 122,702 75,243 145,205
50,905,054 6,141,232 38,813,547
TOTAL EQUITY AND LIABILITIES 88,319,251 11,063,419 74,532,639
Included in cash and cash equivalents at 30 June 2018 was GBP47.1
of client funds (30 June 2017: GBP3.4m, 31 December 2017: GBP34.1)
FairFX group PLC
consolidated statement of CHANGES IN EQUITY
Share Share Share Retained Merger Contingent Total Equity
Capital Premium Based De cit Reserve consideration Attributable
Payment reserve to Shareholders
GBP GBP GBP GBP GBP GBP GBP
Balance as
at 1 January
2017 1,031,160 10,174,273 668,422 (12,897,682) 5,416,083 - 4,392,256
Profit for
the period - - - 150,392 - - 150,392
Share issued
in the period 7,241 307,758 - - - - 314,999
Share based
payment charge - - 64,539 - - - 64,539
Balance as
at 30 June
2017 1,038,401 10,482,032 732,961 (12,747,290) 5,416,083 - 4,922,187
Balance as
at 1 January
2017 1,031,160 10,174,273 668,422 (12,897,682) 5,416,083 - 4,392,256
Profit for
the period - - - 447,136 - - 447,136
Shares issued
in the year 522,522 25,684,497 - - 2,979,438 - 29,186,457
Share based
payment charge - - 476,410 - - - 476,410
Equity based
acquisition
consideration - - - - - 543,172 543,172
Balance as
at 31 December
2017 1,553,682 35,858,770 1,144,832 (12,450,546) 8,395,521 543,172 35,045,431
Profit for
the year - - - 2,083,560 - - 2,083,560
Shares issued
in the period - - - - - - -
Share based
payment charge - - 24,001 - - - 24,001
Balance as
at 30 June
2018 1,553,682 35,858,770 1,168,832 (10,366,986) 8,395,521 543,172 37,152,991
The following describes the nature and purpose of each reserve within owners' equity:
Share capital Amount subscribed for shares at nominal value.
Share premium Amount subscribed for shares in excess of nominal
value less costs directly attributable to the
Initial Public Offer of the company's share.
Share based payment Fair value of share options granted to both
directors and employees.
Retained deficit Cumulative profit and losses are attributable
to equity shareholders.
Merger reserve Arising on reverse acquisition from group reorganisation.
Contingent consideration Arising on equity based contingent consideration
reserve on acquisition of subsidiaries
Under the principles of reverse acquisition accounting, the group is presented as if FAIRFX Group Plc had always owned the FAIRFX (UK) Limited group. The comparative and current period consolidated reserves of the group are adjusted to reflect the statutory share capital and merger reserve of FAIRFX Group Plc as if it had always existed
FairFX group PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
Audited as
Unaudited Unaudited at
6 months 6 months
ended ended Year ended
30-Jun-18 30-Jun-17 31-Dec-17
GBP GBP GBP
Profit / (Loss) for the period
/ year 2,083,559 150,392 447,136
Cash flow from operating activities
Adjustments for:
Depreciation 71,082 15,108 51,727
Amortisation 325,029 - 221,117
Share based payment charge 24,000 64,539 112,961
Decrease / (increase) in trade
and other receivables 1,146,761 74,668 (697,755)
Decrease (increase) in derivative
financial assets 24,253 17,974 (79,891)
(Increase) in deferred tax
asset - - (511,912)
(Decrease) / increase in trade
and other payables 13,870,033 (1,448,134) 31,254,467
Increase in deferred tax liabilities (58,919) - 791,499
Increase in derivative financial
liabilities (22,503) (72,714) (2,752)
Decrease / (increase) in inventories` (40,016) (51,685) 38,031
Net cash generated from operating
activities 17,423,279 (1,249,852) 31,624,630
Cash flows from investing
activities
Acquisition of property, plant
and equipment (203,205) (139,125) (83,266)
Acquisition of intangibles - - (193,757)
Acquisition of subsidiary,
net of cash acquired (6,963,834) (424,675) (12,827,261)
Investment in subsidiary undertaking (4,397,423) - (1,255,748)
Net cash used in investing
activities (11,564,462) (563,800) (14,360,032)
Cash flows from financing
activities
Proceeds from issuance of
ordinary shares - 314,999 27,703,789
Costs directly attributable
to share issuance - - (1,541,641)
Net cash from financing activities - 314,999 26,162,148
Net increase / (decrease)
in cash and cash equivalents 5,858,817 (1,498,653) 43,426,744
Cash and cash equivalents
at the beginning of the period
/ year 51,950,729 8,523,985 8,523,985
Cash and cash equivalents
at the end of the period /
year 57,809,546 7,025,332 51,950,729
Included in cash and cash equivalents at 30 June 2018 was GBP47.1 million of client funds (30 June 2017: GBP3.4 million, 31 December 2017: GBP34.1million).
FairFX group PLC
Notes to the unaudited Consolidated Interim Report for the six months ending 30 June 2017
1. Basis of preparation and accounting policies
The interim nancial statements have been prepared in accordance with the AIM rules and the basis of accounting policies set out in the accounts of the Group for the year ended 31 December 2017. The consolidated interim nancial statements have been prepared using recognition and measurement principles of IFRS as adopted for use in the European Union. The IASB has issued a number of IFRS and IFRIC amendments or interpretations since the last annual report was published. It is not expected that any of these will have a material impact on the Group and therefore accounting policies applied are consistent with those disclosed in the annual nancial statements for the year ended 31 December 2017.
The interim nancial statements are unaudited and were approved by the Board of Directors for issue on 26 September 2018. The information set out herein is abbreviated and does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. These interim consolidated nancial statements do not include all disclosures which would be required in a complete set of nancial statements and should be read in conjunction with the 2017 Annual Report. The results for the year ended 31 December 2017 are in abbreviated form and have been extracted from the published nancial statements of the Group. There were audited and reported upon without quali cation by KPMG LLP and did not contain a statement under Section 498 (2) or (3) of the Companies Act 2006.
The Group has not applied IAS 34 "Interim Financial Reporting" (which is not mandatory for UK Groups) in the preparation of this interim report.
The Company is a limited liability company incorporated and domiciled in England and Wales and whose shares are quoted on AIM, a market operated by The London Stock Exchange. The Group nancial statements are presented in pounds Sterling, which is the Group's presentational currency.
2. Basis of consolidation
The consolidated nancial statements incorporate the nancial statements of the Company and its subsidiary undertakings. The company did not undertake any transactions prior to 30 June 2014.
On 5 August 2014, FAIRFX Group plc listed its shares on AIM, a market operated by The London Stock Exchange. In preparation for the Initial Public O ering ("IPO") the Group was restructured. The restructure impacted a number of the prior year and comparative primary nancial statements and notes. The e ect of this reorganisation was to insert one new company into the Group, a new ultimate holding company, FAIRFX Group plc.
FAIRFX Group Plc acquired the entire share capital of FAIRFX (UK) Limited (previously named FAIRFX Group Limited) on 22 July 2014 through a share for share exchange. For the consolidated financial statements of the Group, prepared under IFRS, the principles of reverse acquisition under IFRS 3 "Business Combinations" have been applied. The steps to restructure the group had the effect of FAIRFX Group Plc being inserted above FAIRFX (UK) Limited. The holders of the share capital of FAIRFX (UK) Limited were issued fifty shares in FAIRFX Group Plc for one share held in FAIRFX (UK) Limited.
By applying the principles of reverse acquisition accounting, the Group is presented as if FAIRFX Group plc had always owned and controlled the FAIRFX group. Comparatives have also been prepared on this basis. Accordingly, the assets and liabilities of FAIRFX Group plc have been recognised at their historical carrying amounts, the results for the periods prior to the date the Company legally obtained control have been recognised and the nancial information and cash ows re ect those of the "former" FAIRFX (UK) Limited group.
3. Going concern basis
The nancial statements have been prepared on a going concern basis. In determining the appropriate basis of preparation of the interim statements, the Directors are required to consider whether the Group can continue in operational existence for the foreseeable future. The Directors are of the opinion that the Group and Company have adequate resources to continue in operational existence for the foreseeable future and feel it is appropriate to adopt the going concern basis in the preparation of the interim statements.
4. Segmental analysis
The revenue for the group is generated through the provision of currency cards, international payments, travel cash and banking. The revenue is wholly derived from within the UK.
Currency International
Jun-18 Cards Payments Banking Cash Central Total
GBP GBP GBP GBP GBP GBP
---------------- ------------------------------------------- ------------------------------------------- ------------------------------------------- ------------------------------------------- ------------------------------------------- -------------------------------------------
Segment revenue 4,087,205 3,945,795 3,057,739 932,558 - 12,023,297
Direct costs - - (598,700) - (1,729,710) (2,328,410)
Administrative
expenses - - (1,627,895) - (5,814,600) (7,442,495)
Acquisition
costs - - - - (227,752) (227,752)
Profit /(loss)
before tax
and from
operations 4,087,205 3,945,795 831,144 932,557 (7,772,061) 2,024,640
================ =========================================== =========================================== =========================================== =========================================== =========================================== ===========================================
Total assets - 88,319,251 88,319,251
Total
liabilities - (51,166,260) (51,166,260)
Total net
assets - - - - 37,152,991 37,152,991
================ =========================================== =========================================== =========================================== =========================================== =========================================== ===========================================
Currency International
Dec-17 Cards Payments Banking Cash Central Total
GBP GBP GBP GBP GBP GBP
---------------- ------------------------------------------- ------------------------------------------- ------------------------------------------- ------------------------------------------- ------------------------------------------- -------------------------------------------
Segment revenue 8,124,165 5,108,440 1,896,470 331,660 - 15,460,735
Direct costs - - (347,886) - (3,177,790) (3,525,676)
Administrative
expenses - - (1,346,062) - (10,089,779) (11,435,841)
Acquisition
costs - - - - (269,769) (269,769)
Profit /(loss)
before tax
and from
operations 8,124,165 5,108,440 202,522 331,660 (13,537,338) 229,449
================ =========================================== =========================================== =========================================== =========================================== =========================================== ===========================================
Total assets - - - - 74,532,639 74,532,639
Total
liabilities - - - - (39,487,208) (39,487,208)
Total net
assets - - - - 35,045,431 35,045,431
================ =========================================== =========================================== =========================================== =========================================== =========================================== ===========================================
Currency International
Jun-17 Cards Payments Banking Cash Central Total
GBP GBP GBP GBP GBP GBP
---------------- ------------------------------------------- ------------------------------------------- ------------------------------------------- ------------------------------------------- ------------------------------------------- -------------------------------------------
Segment revenue 3,531,781 2,398,541 - 174,038 - 6,104,360
Direct costs - - - - (1,256,949) (1,256,949)
Administrative
expenses - - - - (4,697,022) (4,697,022)
Acquisition
costs - - - - - -
Profit /(loss)
before tax
and from
operations 3,531,781 2,398,541 - 174,038 (5,953,971) 150,389
================ =========================================== =========================================== =========================================== =========================================== =========================================== ===========================================
Total assets - 11,063,419 11,063,419
Total
liabilities - 6,141,232 6,141,232
Total net
assets - - - - 17,204,651 17,204,651
================ =========================================== =========================================== =========================================== =========================================== =========================================== ===========================================
5. Taxation
There is no charge for current or deferred tax due to the availability of tax losses. Deferred tax assets are recognised for tax losses carried forward to the extent that the realisation of the related tax benefit through future taxable profits is considered more likely than not. The decision to recognise any asset will be taken at such point recovery is reasonably certain, when the group returns to profitability.
Based on valuation of acquisition of intangibles an enacted UK corporation tax rates the Group has acquired deferred tax liabilities of GBP774,626 in relation to its acquisition of Q Money Limited and Spectrum Financial Group Limited. The deferred tax will be released to the income statement as the underlying intangible assets are amortised or otherwise recognised in the profit and loss. The deferred tax liability released to the income statement for the period was GBP58,919.
6. Profit / Loss per share
The profit / loss per ordinary share is based on a loss attributable to equity shareholders of the parent company.
Unaudited Unaudited Audited
6 months ended 6 months ended Year ended 31
30 June 2018 30 June 2017 December 2017
GBP GBP GBP
Earnings:
Profit / Loss for
the purposes of basic
and diluted profit/loss
per share (PPS/LPS)
being the net profit/loss
attributable to the
owners of the Company 2,083,559 150,392 447,137
Number of shares:
Weighted average number
of Ordinary shares
for the purpose of
basic PPS/LPS 147,603,753 103,768,161 122,013,776
The calculation of diluted earnings per share has been based on the profit / loss attributable to ordinary shareholders and a weighted average number of shares outstanding, after adjustments for the effects of all dilutive potential ordinary shares.
7. Dividends
The Directors do not recommend the payment of a dividend.
8. Share capital and merger reserve
As at As at As at
30 June 2018 30 June 2017 31 December 2017
Number GBP Number GBP Number GBP
Allotted, issued
and fully paid
Ordinary shares
of 1p each 155,368,259 1,553,683 103,840,175 1,038,402 155,368,259 1,553,683
Under the principles of reverse acquisition accounting, the group is presented as if FAIRFX Group Plc had always owned the FAIRFX (UK) Limited group. The comparative and current period consolidated reserves of the group are adjusted to reflect the statutory share capital and merger reserve of FAIRFX Group Plc as if it had always existed.
9. Events after the reporting date
None.
10. Interim announcement
The interim report was approved by the Board of Director for issue on 26 September 2018. A copy will be posted on the Investor section of the Company's website at www.fairfxplc.com.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
IR UVSARWOAKUUR
(END) Dow Jones Newswires
September 26, 2018 02:01 ET (06:01 GMT)
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