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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Ienergizer Limited | LSE:IBPO | London | Ordinary Share | GG00B54NMG96 | 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% | 59.80 | 57.80 | 59.60 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMIBPO
RNS Number : 1712T
iEnergizer Limited
13 November 2019
13 November 2019
iEnergizer Limited
("iEnergizer", the "Company" or the "Group")
INTERIM RESULTS FOR THE SIX MONTHSED 30 SEPTEMBER 2019
iEnergizer, the technology services and media solutions leader for the digital age, reports interim results for the six months ended September 30, 2019.
Financial Highlights: Sustained profitable revenue growth and margin improvements, achieved through deepening existing customer relationships and securing new customer contracts, with ongoing careful cost management
-- Group Revenue up 13.1% to $96.2m (H1 2019: $85.1m) -- Service Revenue up 15.6% to $95.2m (H1 2019: $82.4m) -- EBITDA(1) of $29.1m (H1 2019: $24.3m) -- Higher EBITDA margin at 30.2% (H1 2019: 29.1%) -- Operating profit increased to $26.8m (H1 2019: $23.4m) -- Higher operating profit margin at 27.8% (H1 2019: 27.5%) -- Profit before tax increased to $25.0m (H1 2019: $21.0m) -- Higher profit before tax margin at 25.9% (H1 2019: 24.6%) -- Profit after tax increased to $21.6m (H1 2019: $17.3m) -- Net debt(2) of $0.43m (31 March 2019: $3.9m) -- Proposing interim dividend of 5.2p per ordinary share ($12.7m) (H1 2019: nil p)
Operational Highlights: Continued focus on higher margin work and success in business development with existing and new customers.
-- Services: Double-digit revenue growth to $95.2m (H1 2019: $82.4m) through: the addition of several new clients; and increased billable work volumes and new contract wins from existing clients, including higher margin activity.
-- Business Process Outsource ("BPO"): Strong revenue growth of 23.6% to $59.4m in H1 2020 (H1 2019: $48.1m) and EBITDA margins 20.3% higher at $20.8m (H1 2019: $17.3m), as key customers continued to increase workload volumes. The focus remains on recurring revenue streams from long-term customer relationships across all verticals.
-- Content Division: Revenue growth of 4.3% to $35.7m in H1 2020 (H1 2019: $34.3m) and increased EBITDA margins by 18.4% to $8.8m (H1 2019: $7.5m), achieved despite structural pressures in the traditional publishing market.
o New E-Learning projects, related to design and development of class room training material for virtualization projects, supported revenue growth in Content Division.
o Continued development of new course material and Learning Management Systems (LMS) for the Off-The-Shelf (OTS) content service.
o Growing customer base, amongst existing and new customers, for the Scientific Publishing and Remittance Integration Services ("SciPris") product line.
o Growing customer pipeline for new services, such as Anti Money Laundering KYC service.
-- New business development:
o US based sales team continued to focus on three strategic priorities: to enhance and grow key accounts; to identify and win new business through new customers as well as target our existing accounts; and to cross-sell and generate leads for additional services.
o Acquisition of multiple new customers in H1 2020 across iEnergizer's business lines of Business Process Outsource and Content Services Division, with revenue expected to contribute from H2 2020.
-- Cost management:
o Continued focus on cost saving initiatives.
o Increased proportion of division-specific higher margin work, particularly in non-voice based processes including content writing, financials, entertainment gaming support, content technology and digital solutions.
o Effective use of technology to handle greater volumes from key customers without notable additional human resource.
-- Interim Dividend:
o In line with the progressive dividend policy, the Company is pleased to announce an interim dividend of 5.2p with the Dividend record date of 21(st) November, 2019. This interim dividend reflects the Board's confidence in the Group's business plan and growth prospects.
o The Company's Ordinary Shares are expected to go ex-dividend on 22(nd) November 2019 and the interim dividend is expected to be paid on 20(th) December, 2019.
Marc Vassanelli, Chairman of iEnergizer, commented:
"This has been another successful period for iEnergizer across each division, despite structural challenges in some business areas. The continuation of profitable growth has been driven by our colleagues' continued efforts, in deepening existing customer relationships and attracting new customers via iEnergizer's compelling and evolving proposition, coupled with careful cost management. As a result, we are pleased to announce an interim dividend of 5.2p, for the first time.
"We benefit from a solid foundation, and with continued strong operational execution, the development of new sales initiatives and differentiated offerings, underpinned by a healthy balance sheet and substantial growth opportunities, we expect sustained business performance through the second half of the year. The Board looks forward to the remainder of the year with confidence."
[1] EBITDA has been calculated under the IFRS 16 accounting standards, under which a company's operating lease liabilities are shown as liabilities on the balance sheet, together with the related assets that correspond to the right to use such assets over the remaining life of the related lease contracts. If these impacts had not been taken into consideration, the EBITDA would have been $28.24m.
[2] Net Debt has been calculated after excluding IFRS 16 impact of capitalization of leases as "Right of Use Assets" and their consequent lease liability creation. If these impacts had been included, Net Debt would have been $6.72m.
-Ends-
iEnergizer Ltd. +44 (0)1481 242233 Chris de Putron Mark De La Rue +44 (0)20 3727 FTI Consulting - Communications Adviser 1000 Jonathon Brill / Eleanor Purdon Arden Partners - Nominated adviser and Broker Ciaran Walsh / Steve Douglas / Dan Gee-Summons (Corporate Finance) +44 (0)20 7614 James Reed-Daunter (Equity Sales) 5900
iEnergizer Limited and its subsidiaries
Unaudited Condensed Consolidated Interim Financial Statements
Prepared in accordance with International Financial Reporting Standards (IFRS)
Six months ended 30 September 2019 and 2018
Unaudited Condensed Consolidated Statements of Financial Position
(All amounts in United States Dollars, unless otherwise stated)
Notes As at As at 30 September 31 March 2019 2019 Unaudited Audited -------------------------------------- ------- ---------------------------- ----------------------- ASSETS Non-current Goodwill 5 102,254,951 102,256,665 Other intangible assets 6 18,422,167 12,484,053 Property, plant and equipment 7 6,787,035 6,607,072 Long- term financial asset 639,442 1,681,981 Non-current tax assets 807,223 1,095,365 Deferred tax asset 4,776,269 4,726,068 Other non current assets 9,987 33,098 Non-current assets 133,697,074 128,884,302 ---------------------------- ----------------------- Current Trade and other receivables 34,623,099 36,675,342 Cash and cash equivalents 42,072,283 42,413,215 Short- term financial assets 8 7,903,185 7,058,455 Current tax assets 404,143 505,345 Other current assets 3,365,085 3,320,502 Current assets 88,367,795 89,972,859 ---------------------------- ----------------------- Total assets 222,064,869 218,857,161 ============================ ======================= EQUITY AND LIABILITIES Equity Share capital 3,776,175 3,776,175 Share compensation reserve 63,986 63,986 Additional paid in capital 15,451,809 15,451,809 Merger reserve (1,049,386) (1,049,386) Retained earnings 129,453,634 131,950,337 Other components of equity (12,296,204) (11,669,812) Total equity attributable to equity holders of the parent 135,400,014 138,523,109 ---------------------------- ------------------------- Notes As at As at 30 September 31 March 2019 2019 Unaudited Audited ------ ------------- -------------- Liabilities Non-current
Long term borrowings 38,743,275 870,535 Employee benefit obligations 4,046,496 4,101,097 Other non-current liabilities - 216,669 Deferred tax liability 9,313,757 8,574,576 Non-current liabilities 52,103,528 13,762,877 ---------------------------- ----------------------- Current Short term borrowings - 8,934 Trade and other payables 13,497,589 10,574,896 Employee benefit obligations 1,000,647 858,384 Current portion of long term borrowings 10,045,091 45,403,496 Other current liabilities 10,018,000 9,725,465 Current liabilities 34,561,327 66,571,175 ---------------------------- ----------------------- Total equity and liabilities 222,064,869 218,857,161 ============================ =======================
(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)
Unaudited Condensed Consolidated Income Statements
(All amounts in United States Dollars, unless otherwise stated)
(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)
Notes For the year For the six ended months ended 30 September 30 September 2019 2018 Unaudited Unaudited ------------------------------- ------ ------------- -------------- Income from operations Revenue from services 95,180,896 82,361,309 Other operating income 1,046,950 2,724,771 96,227,846 85,086,080 ------------- -------------- Cost and expenses Outsourced service cost 21,219,347 17,959,356 Employee benefits expense 39,580,811 35,284,407 Depreciation and amortization 2,063,317 2,680,368 Other expenses 6,566,098 5,735,424 69,429,573 61,659,555 ------------- -------------- Operating profit 26,798,273 23,426,525 Finance income 360,107 288,208 Finance cost (2,199,643) (2,760,603) Profit before tax 24,958,737 20,954,130 ------------- -------------- Income tax expense 3,387,120 3,696,473 Profit for the year attributable to equity holders of the parent 21,571,617 17,257,657 ============= ============== Earnings per share 9 Basic 0.11 0.09 Diluted 0.11 0.09 Par value of each share in GBP 0.01 0.01
Unaudited Condensed Consolidated Statements of Other Comprehensive Income
(All amounts in United States Dollars, unless otherwise stated)
For the six For the six months ended months ended ------------------------------------- 30 September 30 September 2019 2018 Unaudited Unaudited ------------------------------------- ------------------------------- -------------------------------- Profit after tax for the year 21,571,617 17,257,657 Other comprehensive income Items that will be reclassified subsequently to the consolidated income statement Exchange differences on translating foreign operations (808,836) (5,458,225) Net other comprehensive (loss) that will be reclassified subsequently to consolidated income statement (808,836) (5,458,225) ------------------------------- -------------------------------- Items that will not be reclassified subsequently to income statement Remeasurement of the net defined 257,399 - benefit liability Income tax relating to items (74,954) - that will not be reclassified Net other comprehensive income 182,445 - that will be not be reclassified subsequently to consolidated income statement ------------------------------- -------------------------------- Other comprehensive income/(loss) for the year (626,391) (5,458,225) Total comprehensive income attributable to equity holders 20,945,226 11,799,432 ------------------------------- --------------------------------
(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)
Unaudited Condensed Consolidated Statements of Changes in Equity
(All amounts in United States Dollars, unless otherwise stated)
Share Additional Share compensation Merger Other components Retained Total capital Paid in Capital reserve reserve of equity earnings equity ----------------------------------------- Foreign Net defined currency benefit translation liability reserve --------------- ----------------------- ---------------------------- ----------------------- --------------------- -------------------- ------------------- --------------------------------- Balance as at 01 April 2018 3,776,175 15,451,809 63,986 (1,049,386) (9,219,409) 706,857 100,201,260 109,931,292 --------------- ----------------------- ---------------------------- ----------------------- --------------------- -------------------- ------------------- --------------- ---------------- Profit for the year - - - - - - 31,749,077 31,749,077 Other comprehensive loss - - - - (3,228,735) 71,475 - (3,157,260) --------------- Total comprehensive income for the year - - - - (3,228,735) 71,475 31,749,077 28,591,817 --------------- ----------------------- ---------------------------- ----------------------- --------------------- -------------------- ------------------- --------------- ---------------- Balance as at 31 March 2019 3,776,175 15,451,809 63,986 (1,049,386) (12,448,144) 778,332 131,950,337 138,523,109 --------------- ----------------------- ---------------------------- ----------------------- --------------------- -------------------- ------------------- --------------- ----------------
(The accompanying notes are an integral part of the Consolidated Financial Statements)
iEnergizer Limited Share Additional Share compensation Merger Other components Retained Total capital Paid in Capital reserve reserve of equity earnings equity -------------------------------- Foreign Net defined currency benefit translation liability reserve --------------- ------------- --------------------- ------------------------------- --------------- ---------------- -------------- ------------------------------- Balance as at 01 April 2019 3,776,175 15,451,809 63,986 (1,049,386) (12,448,144) 778,332 131,950,337 138,523,109 --------------- ------------- --------------------- ------------------------------- --------------- ---------------- -------------- -------------- --------------- Dividends - - - - - - (24,068,320) (24,068,320) --------------- ------------- --------------------- ------------------------------- --------------- ---------------- -------------- -------------- --------------- Transaction with owners (24,068,320) (24,068,320) --------------- ------------- --------------------- ------------------------------- --------------- ---------------- -------------- -------------- --------------- Profit for the year - - - - - - 21,571,617 21,571,617 Other comprehensive loss - - - - (808,836) 182,444 - (626,392) --------------- Total comprehensive income for the period - - - - (808,836) 182,444 21,571,617 20,945,225 --------------- ------------- --------------------- ------------------------------- --------------- ---------------- -------------- -------------- --------------- Balance as at 30 September 2019 3,776,175 15,451,809 63,986 (1,049,386) (13,256,980) 960,776 129,453,634 135,400,014 --------------- ------------- --------------------- ------------------------------- --------------- ---------------- -------------- -------------- ---------------
(The accompanying notes are an integral part of these Unaudited Condensed Consolidated Interim Financial Statements)
Unaudited Condensed Consolidated Statements of Cash Flows
(All amounts in United States Dollars, unless otherwise stated)
` For the six months For the six months ended ended 30 September 30 September 2019 2018 (A) Cash flow from operating activities Profit before tax 24,958,737 20,954,130 Adjustments Depreciation and amortisation 2,063,317 2,680,368 Loss/(Profit) on disposal of property, plant and equipment (6,024) (9,312) Trade receivables written-off/provision for doubtful debts (65,262) (411) Unrealised and Realised foreign exchange gain (174,089) (2,398,514) Finance income (360,107) (288,208) Finance cost 2,199,643 2,760,603 ------------------------------- -------------------------------- 28,616,215 23,698,656 Changes in operating assets and liabilities (Increase)/ Decrease in trade and other receivables 2,015,601 (4,050,098) (Increase)/ Decrease in other assets (current and non-current) 941,298 (305,985) Increase / (Decrease) Non-current liabilities, trade payables & other current liabilities 2,670,121 (3,685,214) (Decrease)/ Increase in employee benefit obligations 307,761 (657,949) ------------------------------- -------------------------------- Cash generated from operations 34,550,996 14,999,410 Income taxes paid (2,383,750) (2,704,661) ------------------------------- -------------------------------- Net cash generated from operating activities 32,167,246 12,294,749 ------------------------------- -------------------------------- (B) Cash flow for investing activities Payments for purchase of property plant and equipment (1,521,588) (2,005,663) Investment in fixed deposit (Net) (883,210) 40,211 Proceeds from disposal of property, plant & equipment 6,581 9,312 Payments for purchase of other intangible assets (220,909) (196,939) Interest received 400,808 263,654 Net cash used in investing activities (2,218,318) (1,889,425) ------------------------------- -------------------------------- For the six months For the six ended months ended 30 September 30 September 2019 2018 (C ) Cash flow from financing activities Interest paid (2,145,802) (2,371,072) Repayment of long-term borrowings (4,150,357) (8,274,611) Net cash used in financing activities (6,296,159) (10,645,683) ------------------------------- ------------------------------- Net increase/(decrease) in cash and cash equivalents 23,652,769 (240,359) Dividends paid to equity holders of the (24,068,320) - parent Cash and cash equivalents at the beginning of the year 42,404,281 33,371,550 Effect of exchange rate changes on cash 83,553 292,269 Cash and cash equivalents at the end of the year 42,072,283 33,423,460 ------------------------------- ------------------------------- Cash and cash equivalents comprise Cash in hand 8,337 12,681 Balances with banks in current account 42,063,946 33,410,779 Bank overdraft - - 42,072,283 33,423,460 ------------------------------- -------------------------------
(The accompanying notes are an integral part of these Consolidated Financial Statements)
Notes to Unaudited Condensed Consolidated Interim Financial Statements
(All amounts in United States Dollars, unless otherwise stated)
1. INTRODUCTION
iEnergizer Limited (the 'Company' or 'iEnergizer ') was incorporated in Guernsey on 12 May 2010.
iEnergizer Limited is a 'Company limited by shares' and is domiciled in Guernsey. The registered office of the Company is located at Mont Crevelt House, Bulwer Avenue, St. Sampson, Guernsey, GY2 4 LH. iEnergizer was listed on the Alternative Investment Market ('AIM') of London Stock Exchange on 14 September 2010.
iEnergizer through its subsidiaries iEnergizer Holdings Limited, iEnergizer IT Services Private Limited, iEnergizer Management Services Limited, iEnergizer BPO Limited, iEnergizer BPO Inc, iEnergizer Aptara Limited and Aptara Inc and subsidiaries. (together the 'Group') is engaged in the business of call centre operations, providing business process outsource (BPO) and content delivery services, and back office services to their customers, who are primarily based in the United States of America and India, from its operating offices in Mauritius and India.
2. GENERAL INFORMATION AND STATEMENT OF COMPLIANCE WITH IFRS
These Unaudited Condensed Consolidated Interim Financial Statements are for the six months ended 30 September 2019 and 2018. They have been prepared in accordance with IAS 34 Interim Financial Reporting as developed and published by the International Accounting Standards Board ('IASB'), on a going concern basis. They do not include all of the information required in annual financial statements in accordance with IFRS, and should be read in conjunction with the annual financial statements for the years ended 31 March 2019 and 2018.
The Unaudited Condensed Consolidated Interim Financial Statements have been prepared and presented in United States Dollar (US$) which is the Company's functional currency.
These Unaudited Condensed Consolidated Interim Financial Statements were approved by the Board on
12 November 2019.
The Group has applied the same accounting policies in preparing these unaudited management financial information as adopted in the most recent annual audited financial information of the Group.
3. SIGNIFICANT ACCOUNTING POLICIES
The interim financial statements have been prepared in accordance with the accounting policies adopted in the Group's most recent annual financial statements for the years ended 31 March 2019 and 2018.
IFRS 16 - Lease Accounting
IFRS 16 will replace the existing leases Standard, IAS 17 Leases, and related interpretations. The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases. IFRS 16 introduces a single lease accounting model and requires a lessee to recognize assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. The effective date for adoption of IFRS 16 is annual periods beginning on or after 1 April 2019
The Group has applied IFRS 16 using the modified retrospective second approach, by measuring the asset at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments recognized immediately before the date of initial application.
The Group has applied the following practical expedients:-
a) On Transition to IFRS 16 the weighted average incremental borrowing rate applied to lease liabilities recognized under IFRS 16 was 8.40%.
b) On Transition for Leases previously accounted for as operating leases with a remaining lease term of less than 12 months and for leases of low- value assets the Group has applied the optional exemptions to not recognize right of use assets but to account for the lease expense on a straight-line method over the remaining lease term.
The changes in accounting policies are also expected to be reflected in the Group's consolidated financial statements as at and for the year ending 31 March 2020. The Group has initially adopted IFRS 16 Leases from 1 April 2019. The Group has applied IFRS 16 using the modified retrospective approach and therefore comparative information is still reported under IAS -17.
The following is a reconciliation of total operating lease commitments at 31 March 2019 to the lease liabilities recognised at 1 April 2019:
Reconciliation at 31st March 2019 Amount in USD Particulars --------------------------------- Gross Lease Liabilities at 31 March 2019 7,308,682 --------------------------------- Less - Lease with remaining lease term of less - than 12 months --------------------------------- Less - Discounted using incremental borrowing rate (956,476) --------------------------------- Add - Other Finance Lease liabilities - --------------------------------- Present value of Lease Liabilities at 31 March 2019 6,352,206 ---------------------------------
Policy for new leases started from or after 1 April 2019
For any new contracts entered into on or after 1 April 2019, the Group considers whether a contract is, or contains a lease. A lease is defined as a contract or part of contract that conveys the right to use an asset for a period of time in exchange for consideration'. To apply this definition the Group assesses whether it meets three key evaluation points:
o The contract contained identified asset.
o Group has the right to obtain substantially all the economic benefit from the use of identified asset throughout the period of use.
o The Group has right to direct the use of the identified asset throughout the period of use.
Measurement and Recognition of leases as a lessee
At the commencement date, the Group recognizes a right of use asset and a lease liability on the balance sheet date. The right of use asset is measured at cost, which is made up of initial measurement of a lease liability and any initial direct cost incurred by the Group.
The Group depreciates the right of use assets on a straight line basis from the lease commencement date to the earlier of the end of the useful life of the right of use asset or the end of lease term. The Group also assesses the right of use asset for impairment when such indicator exists.
At the commencement date, the Group measures the lease liability at the present value of the lease payments unpaid at that date, discounted using the interest rate implicit in the lease if that rate is readily available or the Group's incremental borrowing rate
The Group has elected to account for short-term leases and leases of low-value assets using the practical expedients. Instead of recognising a right-of-use asset and lease liability, the payments in relation to these are recognised as an expense in profit or loss on a straight-line basis over the lease term.
Policy for the comparative period (which has not been restated) has been repeated as follows:-
Determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at inception date whether fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset.
Group as a lessee
Finance leases, which transfer to the Group substantially all the risks and benefits incidental to ownership of the leased item, are capitalized at the commencement of the lease at the fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognized in the consolidated income statement.
Leased assets are depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Group will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term.
Operating lease payments are recognized as an expense in the consolidated income statement on a straight line basis over the lease term. Rent abatements and escalations are considered in the calculation of minimum lease payments in the Group's capital lease testing and in determining straight line rent expense for operating leases.
Consolidated Lease Position as at 30th Sep 2019
Particulars Amount in USD -------------------------------------------------- Fixed Asset- Lease Hold Improvement 1 April 2019 6,352,206 -------------- Fixed Asset- Lease Hold Improvement addition during six months 258,645 -------------- Accumulated Depreciation till 30 September 2019 (619,123) -------------- Net Block as on 30 September 2019 5,991,728 -------------- 4. SIGNIFICANT MANAGEMENT JUDGEMENT IN APPLYING ACCOUNTING POLICIES AND ESTIMATION UNCERTAINTY
When preparing the Unaudited Condensed Consolidated Interim Financial Statements, management undertakes a number of judgements, estimates and assumptions about recognition and measurement of assets, liabilities, income and expenses. The actual results may differ from the judgements, estimates and assumptions made by management, and will seldom equal the estimated results.
The judgements, estimates and assumptions applied in the Unaudited Condensed Consolidated Interim Financial Statements, including the key sources of estimation uncertainty were the same as those applied in the Group's last audited financial statements for the year ended 31 March 2019.
5. GOODWILL
The net carrying amount of goodwill can be analysed as follows:
Particulars Amount ----------------------------- ----------------- Balance as at 01 April 2018 102,265,086 Impairment loss recognized - Translation adjustment (8,421) Balance as at 31 March 2019 102,256,665 ----------------------------- ----------------- Particulars Amount --------------------------------- ------------ Balance as at 01 April 2019 102,256,665 Translation adjustment (1,714) Balance as at 30 September 2019 102,254,951 --------------------------------- ------------ 6. OTHER INTANGIBLE ASSETS
The Intangible assets comprise of computer software, customer contracts.
Particulars Customer contracts* Computer Patent Trademark Intangibles Total software under development --------------- ----------------------- ------------------ ------------------ ------------------- ----------------- ------------------ Cost Balance as at 01 April 2018 24,122,232 3,589,438 100,000 12,000,000 132,490 39,944,160 ----------------------- ------------------ ------------------ ------------------- ----------------- ------------------ Additions - 576,081 576,081 Disposals - - - - - - Translation adjustment (9,418) (221,500) - - - (230,918) Balance as at 31 March 2019 24,112,814 3,944,019 100,000 12,000,000 132,490 40,289,323 ----------------------- ------------------ ------------------ ------------------- ----------------- ------------------ Accumulated amortisation Balance as at 01 April 2018 21,806,084 3,235,118 - - 132,490 25,173,692 ----------------------- ------------------ ------------------ ------------------- ----------------- ------------------ Amortisation/ impairment for the period 2,316,148 523,642 - - - 2,839,790 Disposals - - - - - - Translation adjustment (9,418) (198,794) - - - (208,212) Balance as at 31 March 2019 24,112,814 3,559,966 - - 132,490 27,805,270 ----------------------- ------------------ ------------------ ------------------- ----------------- ------------------ Carrying values as at 31 March 2019 - 384,053 100,000 12,000,000 - 12,484,053 --------------- ----------------------- ------------------ ------------------ ------------------- ----------------- ------------------
*Customer contracts are intangible assets created for long standing customer relationships in the content delivery segment. Once the relationship is established the work continues to flow on a year to year basis. The carrying amount of such contracts is Nil.
Particulars Customer Computer Patent Trademark Intangibles Right of Total contracts* software under Use Asset** development ------------------------- ---------------------- ------------------ ------------------ ------------------- ----------------- ------------------ --------------- Cost Balance as at 01 April 2019 24,112,814 3,944,019 100,000 12,000,000 132,490 - 40,289,323 ---------------------- ------------------ ------------------ ------------------- ----------------- ------------------ --------------- Additions - 150,903 - - - 6,635,210 6,786,113 Disposals - - - - - - - Translation adjustment (1,917) (52,902) - - (45,647) (24,359) (124,825) Balance as at 30 Sept 2019 24,110,897 4,042,020 100,000 12,000,000 132,490 6,610,851 46,996,258 ---------------------- ------------------ ------------------ ------------------- ----------------- ------------------ --------------- Accumulated amortisation Balance as at 01 April 2019 24,112,814 3,559,966 - - 132,490 - 27,805,270 ---------------------- ------------------ ------------------ ------------------- ----------------- ------------------ --------------- Amortisation/impairment for the period - 198,937 - - - 618,554 817,491 Disposals - - - - - - - Translation adjustment (1,917) (47,322) - - - 569 (48,670) Balance as at 30 Sept 2019 24,110,897 3,711,581 - - 132,490 619,123 28,574,091 ---------------------- ------------------ ------------------ ------------------- ----------------- ------------------ --------------- Carrying values as at 30 Sept 2019 - 330,439 100,000 12,000,000 - 5,991,728 18,422,167 ------------------------- ---------------------- ------------------ ------------------ ------------------- ----------------- ------------------ ---------------
*Customer contracts are intangible assets created for long standing customer relationships in the content delivery segment. Once the relationship is established the work continues to flow on a year to year basis. The carrying amount of such contracts is Nil.
**Right of Use Asset has been generated in compliance with adoption of IFRS 16 on Lease Accounting.
7. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment comprise of the following:
Particulars Computer Office Furniture Air conditioner Vehicle Leasehold Plant Capital Total and data Equipment and fixtures and generator improvements and machinery work in equipment progress -------------- --------------------- ----------------- ---------------- --------------------- ----------------- ------------------ -------------- ---------------- ------------ Cost Balance as at 01 April 2018 6,109,821 874,293 1,247,285 378,237 37,066 4,400,598 2,256,054 122,531 15,425,885 --------------------- ----------------- ---------------- --------------------- ----------------- ------------------ -------------- ---------------- ------------ Additions 2,741,100 43,318 284,368 565,532 - 593,856 210,222 101,777 4,540,173 Disposals (Net) (121,154) (12,438) (20,576) (5,678) (14,885) - (18,356) - (193,087) Translation and other adjustment (323,214) (50,401) (72,347) (21,372) (1,434) (277,327) (131,350) - (877,445) Balance as at 31
March 2019 8,406,553 854,772 1,438,730 916,719 20,747 4,717,127 2,316,570 224,308 18,895,526 --------------------- ----------------- ---------------- --------------------- ----------------- ------------------ -------------- ---------------- ------------ Accumulated depreciation Balance as at 01 April 2018 4,782,524 719,304 740,357 208,657 30,768 2,545,403 1,748,184 - 10,775,197 --------------------- ----------------- ---------------- --------------------- ----------------- ------------------ -------------- ---------------- ------------ Depreciation for the year 1,158,555 111,228 316,403 66,624 1,697 457,759 236,334 - 2,348,600 Disposals (Net) (121,154) (12,366) (20,559) (26) (14,885) - (18,356) - (187,346) Translation and other adjustments (297,468) (40,102) (40,177) (13,150) (1,019) (156,878) (99,203) - (647,997) Balance as at 31 March 2019 5,522,457 778,064 996,024 262,105 16,561 2,846,284 1,866,959 - 12,288,454 --------------------- ----------------- ---------------- --------------------- ----------------- ------------------ -------------- ---------------- ------------ Carrying values as at 31 March 2019 2,884,096 76,708 442,706 654,614 4,186 1,870,843 449,611 224,308 6,607,072 -------------- --------------------- ----------------- ---------------- --------------------- ----------------- ------------------ -------------- ---------------- ------------ Particulars Computer Office Furniture Air conditioner Vehicle Leasehold Plant Capital Total and data Equipment and fixtures and generator improvements and machinery work equipment in progress -------------- ----------- ------------------- ------------------ -------------------- ----------------- ------------------- -------------- ---------- ---------------------- Cost Balance as at 01 April 2019 8,406,553 854,772 1,438,730 916,719 20,747 4,717,127 2,316,570 224,308 18,895,526 ----------- ------------------- ------------------ -------------------- ----------------- ------------------- -------------- ---------- ---------------------- Additions 1,037,685 18,062 13,039 17,696 280,348 83,930 92,826 (21,999) 1,521,587 Disposals (Net) (78,892) - - - - - (5,215) - (84,107) Translation and other adjustment (123,241) (10,917) (18,707) (13,026) (909) (66,006) (29,339) (1,572) (263,717) Balance as at 30 Sept 2019 9,242,105 861,917 1,433,062 921,389 300,186 4,735,051 2,374,842 200,737 20,069,289 ----------- ------------------- ------------------ -------------------- ----------------- ------------------- -------------- ---------- ---------------------- Accumulated depreciation Balance as at 01 April 2019 5,522,457 778,064 996,024 262,104 16,561 2,846,284 1,866,960 - 12,288,454 ----------- ------------------- ------------------ -------------------- ----------------- ------------------- -------------- ---------- ---------------------- Depreciation for the period 767,123 37,675 50,621 57,422 5,759 230,206 97,020 - 1,245,826 Disposals (Net) (78,335) - - - - - (5,215) - (83,550) Translation and other adjustments (80,279) (9,689) (12,807) (4,103) (266) (38,569) (22,762) - (168,475) Balance as at 30 Sept 2019 6,130,966 806,050 1,033,838 315,423 22,054 3,037,921 1,936,003 - 13,282,255 ----------- ------------------- ------------------ -------------------- ----------------- ------------------- -------------- ---------- ---------------------- Carrying values as at 30 Sept 2019 3,111,139 55,867 399,224 605,966 278,132 1,697,130 438,839 200,737 6,787,035 -------------- ----------- ------------------- ------------------ -------------------- ----------------- ------------------- -------------- ---------- ---------------------- 8. SHORT TERM FINANCIAL ASSETS Particulars 30 September 31 March 2019 2019 ---------------------------------------- -------------------- -------------------- Security deposits 9,126 11,985 Restricted cash 5,055,927 4,747,604 Short term investments (fixed deposits with maturity less than 12 months) 2,758,929 1,803,959 Derivative financial instruments 9,487 426,984 Due from officers and employees 62,526 20,032 Others 7,190 47,891 ---------------------------------------- -------------------- -------------------- 7,903,185 7,058,455 ---------------------------------------- -------------------- --------------------
Short term investments comprise of investment through banks in deposits denominated in various currency units bearing fixed rate of interest.
9. EARNINGS PER SHARE
The calculation of the basic earnings per share is based on the profits attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period.
Calculation of basic and diluted profit per share for the period ended 30 September 2019 is as follows:
asic earnings per share
Particulars 30 September 30 September 2019 2018 ---------------------------------------------- --------------------------- ------------- Profit attributable to shareholders 21,571,617 17,257,657 Weighted average numbers shares outstanding 190,130,008 190,130,008 Basic earnings per share (US$) 0.11 0.09 ---------------------------------------------- --------------------------- -------------
Diluted earnings per share
Particulars 30 September 30 September 2019 2018 ---------------------------------------------- ------------- ------------------------ Profit attributable to shareholders 21,571,617 17,257,657 Weighted average numbers shares outstanding 190,130,008 190,130,008 Diluted earnings per share (US$) 0.11 0.09 ---------------------------------------------- ------------- ------------------------
10. RELATED PARTY TRANSACTIONS
The related parties for each of the entities in the Group have been summarised in the table below:
Nature of the relationship Related Party's Name ------------------------------ ------------------------------------------- I. Ultimate controlling Mr. Anil Aggarwal party II. Entities directly or indirectly through EICR (Cyprus) Limited (Parent of one or more intermediaries, iEnergizer Limited) control, are controlled by, or are under common control with, the reported enterprises III. Key management personnel Mr. Anil Aggarwal (Ultimate Shareholder, ("KMP") and significant EICR Limited) shareholders Mr. Chris de Putron (Director, iEnergizer Limited) Mr. Mark De La Rue (Director, iEnergizer Limited) Mr. Marc Vassanelli (Director, iEnergizer Limited) Mr. Ashish Madan (Director, iEnergizer Limited) w.e.f. 16 August 2018
Disclosure of transactions between the Group and related parties and the outstanding balances is as under:
Transactions with KMP and relative of KMP
Particulars 30 September 30 September 2019 2018 -------------------------------- ------------- ------------- Transactions during the period ended Short term employee benefits Remuneration paid to directors Chris de Putron 6,249 6,559 Mark De La Rue 6,249 6,559 Marc Vassanelli 18,747 19,678 Balances at the end of Total remuneration payable 109,385 71,678 -------------------------------- ------------- -------------
11. SEGMENT REPORTING
Management currently identifies the Group's two service lines business process outsource and content delivery as operating segments on the basis of operations. These operating segments are monitored and operating and strategic decisions are made on the basis of operating segment results.
The Chief Operating Decision Maker ("CODM") evaluates the Group's performance and allocates resources based on an analysis of various performance indicators by reportable segments. The Group's reportable segments are as follows:
1. Business Process Outsource 2. Content delivery 3. Others
The measurement of each segment's revenues, expenses and assets is consistent with the accounting policies that are used in preparation of the Unaudited Condensed Consolidated Interim Financial Statements. In addition, two minor operating segments, for which the quantitative thresholds have not been met, are currently combined below under 'Others'. Segment information can be analysed as follows for the reporting periods under review:
30 September 2019 --------------------------------------- Business Content delivery Others Total Process Outsource --------------------------- ----------------------- ----------------------- ------------------ ------------------- Revenue from external customers 59,433,379 35,747,517 - 95,180,896 Other income (including realised foreign exchange gain) 1,023,702 280,168 4,524 1,308,394 Segment revenue 60,457,081 36,027,685 4,524 96,489,290 --------------------------- ----------------------- ----------------------- ------------------ ------------------- Less:- Cost of outsourced Services 16,144,667 5,074,680 - 21,219,347 Employee benefit expense 20,188,248 19,392,563 - 39,580,811 Other expenses 3,339,716 2,726,155 500,227 6,566,098 --------------------------- ----------------------- ----------------------- ------------------ ------------------- Earning before interest, tax, depreciation and amortisation 20,784,450 8,834,288 (495,703) 29,123,034 --------------------------- ----------------------- ----------------------- ------------------ ------------------- Rent credit adjustment as per IFRS 16 (281,860) (602,398) - (884,258) ----------------------- ----------------------- ------------------ ------------------- Earning before interest, tax, depreciation and amortisation (before IFRS 16 rent credit adjustment ) 20,502,589 8,231,890 (495,703) 28,238,776 --------------------------- ----------------------- ----------------------- ------------------ ------------------- Unrealized Foreign Exchange gain/(loss) - (261,444) - (261,444) Depreciation and amortisation 959,531 1,103,786 - 2,063,317 Rent adjustment as per IFRS 16 281,860 602,398 - 884,258 --------------------------- ----------------------- ----------------------- ------------------ ------------------- Segment operating profit 19,824,918 7,469,058 (495,703) 26,798,273 Other Income/expense : Finance income 135,427 113,968 110,712 360,107 Finance costs (256,274) (1,119,634) (823,735) (2,199,643) Profit before tax 19,704,071 6,463,392 (1,208,726) 24,958,737 --------------------------- ----------------------- ----------------------- ------------------ ------------------- Income tax expense 1,954,446 1,432,675 - 3,387,120 Profit after tax 17,749,626 5,030,717 (1,208,726) 21,571,617 --------------------------- ----------------------- ----------------------- ------------------ ------------------- Segment assets 48,324,778 156,564,586 17,175,505 222,064,869 Segment liabilities 20,317,643 48,416,000 17,931,212 86,664,855 Capital expenditure 4,682,531 3,625,169 - 8,307,700 --------------------------- ----------------------- ----------------------- ------------------ ------------------- 30 September 2018 ----------------------------------- Business Content delivery Others Total Process Outsource ---------------------------------- ---------------------- --------------------- ---------------- ----------------- Revenue from external customers 48,093,184 34,268,125 - 82,361,309 Other income (including realized foreign exchange gains) 409,617 471,386 850 881,853 Segment revenue 48,502,801 34,739,511 850 83,243,162 ---------------------------------- ---------------------- --------------------- ---------------- ----------------- Less:- Cost of outsourced Services 13,506,125 4,453,231 - 17,959,356 Employee benefit expense 15,973,780 19,310,627 - 35,284,407 Other expenses 1,749,646 3,515,201 470,577 5,735,424 ---------------------------------- ---------------------- --------------------- ---------------- ----------------- Earning before interest, tax, depreciation and amortisation 17,273,250 7,460,452 (469,727) 24,263,975 ---------------------------------- ---------------------- --------------------- ---------------- ----------------- Unrealized Foreign Exchange gain/(loss) - 1,842,918 - 1,842,918 Depreciation and amortisation 605,108 2,075,260 - 2,680,368 Segment operating profit 16,668,142 7,228,110 (469,727) 23,426,525 ---------------------------------- ---------------------- --------------------- ---------------- ----------------- Other Income/expense : Finance income 138,957 126,948 22,303 288,208
Finance costs (16,061) (1,139,625) (1,604,916) (2,760,603) Profit before tax 16,791,038 6,215,433 2,052,340 20,954,131 ---------------------------------- ---------------------- --------------------- ---------------- ----------------- Income tax expense 2,526,676 1,169,797 - 3,696,473 Profit after tax 14,264,361 5,045,637 2,052,340) 17,257,658 ---------------------------------- ---------------------- --------------------- ---------------- ----------------- Segment assets 43,431,117 75,456,382 86,626,765 205,514,264 Segment liabilities 15,147,228 46,029,831 22,606,489 83,783,548 Capital expenditure 1,874,708 339,414 - 2,214,122 ---------------------------------- ---------------------- --------------------- ---------------- -----------------
Revenue from the following customer's amounts to more than 10% of consolidated revenue during the period presented.
30 September 2019
Revenue from Segment Amount -------------- ---------------------------- ----------------------------- Customer 1 Business Process Outsource 9,928,185 -------------- ---------------------------- -----------------------------
30 September 2018
Revenue from Segment Amount -------------- ---------------------------- --------------------- Customer 1 Business Process Outsource 9,763,189 -------------- ---------------------------- ---------------------
12. FINANCIAL ASSETS AND LIABILITIES
Fair value of carrying amounts of assets and liabilities presented in the statement of financial position relates to the following categories of assets and liabilities:
Financial assets 30 September 31 March 2019 2019 ----------------------------------------- ------------------------- --------------------- Non-current assets Loans and receivables Security deposits 530,183 507,498 Restricted cash 109,259 108,591 Fixed deposit - 1,065,892 Current assets Loans and receivables Trade receivables 34,623,099 36,675,342 Cash and cash equivalents 42,072,283 42,413,215 Restricted cash 5,055,927 4,747,604 Security deposits 9,126 11,985 Short term investments 2,758,929 1,803,959 Due from officers and employees 62,526 20,032 Other short term financial assets 7,190 47,891 Fair value through profit and loss: Derivative financial instruments 9,487 426,984 85,238,009 87,828,993 ----------------------------------------- ------------------------- --------------------- Financial liabilities 30 September 31 March 2019 2019 ----------------------------------------- ------------------------- --------------------- Non-current liabilities Financial liabilities measured at amortized cost: Long term borrowings 38,743,275 870,535 Current liabilities Financial liabilities measured at amortized cost: Short term borrowings - 8,934 Trade payables 13,497,589 10,574,896 Current portion of long term borrowings 10,045,091 45,403,496 Other current liabilities 10,018,000 9,725,465 Fair value through profit and loss: Derivative financial instruments - - 72,303,955 66,583,326 ----------------------------------------- ------------------------- ---------------------
These non-current financial assets and liabilities, current financial assets and liabilities have been recorded at their respective carrying amounts as the management considers the fair values to be not materially different from their carrying amounts recognised in the statement of financial positions as these are expected to realise within one year from the reporting dates. Derivative financial instruments, recorded at fair value through profit and loss, are recorded at their respective fair values on the reporting dates.
13. FAIR VALUE HIERARCHY
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
No financial assets/liabilities have been valued using level 1 and 3 fair value measurements.
The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis:
Fair value measurements at reporting date using ----------------------------- ---------------- ------------------------ 30 September 2019 Total Level 2 ----------------------------- ---------------- ------------------------ (Notional Liabilities amount) Derivative instruments Forward contracts (currency - US$/INR) 32,440,000 9,487 ----------------------------- ---------------- ------------------------ Fair value measurements at reporting date using ----------------------------- ------------- ------------------------ 31 March 2019 Total Level 2 ----------------------------- ------------- ------------------------ (Notional Assets amount) Derivative instruments Forward contracts (currency - US$/INR) 18,700,000 426,984 ----------------------------- ------------- ------------------------
14. COMMITMENT AND CONTINGENCIES
As at 30 September 2019 and 31 March 2019, the Group had a capital commitment of US$ 257,684 and US$126,817 respectively for acquisition of property, plant and equipment.
The contingent liability in respect of claims filed by erstwhile employees against the group companies amounts to US$129,483 and US$122,834 as on 30 September 2019 and 31 March 2019 respectively and in respect of interest on VAT amounts to US$9,918 as on 30 September 2019 (US$10,060 as on 31 March 2019).
Guarantees: As at 30 September 2019 and 31 March 2019, guarantees provided by banks on behalf of the group companies to the revenue authorities and certain other agencies, amount to approximately US$34,555 and US$35,049 respectively.
15. ESTIMATES
The preparation of interim financial statements require management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
In preparing these Unaudited Condensed Consolidated Interim Financial Statements, the significant judgments made by the management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the years ended 31 March 2019 and 2018.
16. FINANCIAL RISK MANAGEMENT
The Group's financial risk management objectives and policies are consistent with those disclosed in the consolidated financial statements as at and for the years ended 31 March 2019 and 2018.
(1) EBITDA has been calculated under the IFRS 16 accounting standards, under which a company's operating lease liabilities are shown as liabilities on the balance sheet, together with the related assets that correspond to the right to use such assets over the remaining life of the related lease contracts. If these impacts had not been taken into consideration, the EBITDA would have been $28.24m.
(2) Net Debt has been calculated after excluding IFRS 16 impact of capitalization of leases as "Right of Use Assets" and their consequent lease liability creation. If these impacts had been included, Net Debt would have been $6.72m
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.
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November 13, 2019 02:01 ET (07:01 GMT)
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