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Share Name Share Symbol Market Type Share ISIN Share Description
Orient Telecoms Plc LSE:ORNT London Ordinary Share GB00BYPHCZ29 ORD 10P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 27.50 22.00 33.00 27.50 27.50 27.50 0.00 01:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Software & Computer Services 0.6 -0.0 -0.1 - 3

Orient Telecoms PLC Half-year Report 2020

16/12/2020 8:02am

UK Regulatory (RNS & others)


Orient Telecoms (LSE:ORNT)
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TIDMORNT

RNS Number : 8341I

Orient Telecoms PLC

16 December 2020

ORIENT TELECOMS PLC

INTERIM FINANCIAL STATEMENTS

For the six months ended 30 September 2020

Director's Statement

I have pleasure in presenting the interim financial statements of Orient Telecoms Plc and its subsidiary undertaking (the "Group") for the six months ended 30 September 2020.

During the financial period, the Group reported a net profit of GBP7,046 (GBP0.001 profit per share).

The Group has positioned itself as fully managed overlay network service provider which makes the company very light weight and not requiring to invest heavily in building the network infrastructure which may later be at risk due to sudden change in the technology. Evolution from 4G to 5G is only going to make the company stronger to offer better services to its customers with greater reach.

With the introduction and race to deploy 5G services across the region, Orient Telecoms finds itself in a very safe and secure place by having its approach to provide connectivity riding on 3rd party infrastructure. As the fixed line telecommunication companies keeps on growing their 5G reach, Orient Telecoms will follow their infrastructure to offer its services/platforms to its clients regionally.

The Group is also working with its partners to introduce new platforms, cloud based services and other technology solutions. The next goal is to have its business unit focus on other service sectors such as Satellite based high speed internet and Smart City solutions.

The Group expects 2021 to be another challenging year and competition remain intense as well as the COVID-19 situation globally slowing down the businesses. Whilst it may not be an easy year ahead, the Group is committed to continue its efforts in improving its competitiveness by implementing various strategies include further negotiating better deals with other network provider as our business grows, which will enable efficiency in cost management and optimization. The Group promises to continuously tap the growth opportunities available in the market. Barring any unforeseen circumstances, the Group expects better performance for the year ahead.

Responsibility Statement

The Directors are responsible for preparing the interim financial statements in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority ('DTR') and with International Accounting Standard 34 on Interim Financial Reporting (IAS 34) as adopted by European Union.

The Directors confirm that, to the best of their knowledge, the interim financial statements have been prepared in accordance with IAS 34 as adopted by the European Union. The interim financial statements include a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:

-- an indication of important events that have occurred during the first six months and their impact on the interim financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial period; and

-- material related-party transactions in the first six months and any material changes in the related-party transactions described in the last annual report.

Sayed Mustafa Ali

Director

16 December 2020

 
                                                        6 months        6 months 
                                                       period ended    period ended 
                                                       30 September    30 September 
                                                           2020            2019 
                                              Notes        GBP             GBP 
                                                       (Unaudited)     (Unaudited) 
 
 INCOME                                         4           317,512      266,445 
 COST OF SALES                                            (143,238)     (87,293) 
                                                     --------------  -------------- 
 GROSS PROFIT                                               174,274      179,152 
 Other operating expenses                                 (173,223)       (206,680) 
 Finance income/(expenses)                                    7,316         (1,997) 
                                                     --------------  -------------- 
 OPERATING PROFIT/(LOSS) BEFORE TAXATION                      8,367        (29,525) 
 Income tax expense                                         (1,321)               - 
                                                     --------------  -------------- 
 PROFIT/(LOSS) FOR THE PERIOD ATTRIBUTABLE 
  TO EQUITY HOLDERS OF THE COMPANY                            7,046        (29,525) 
 OTHER COMPREHENSIVE INCOME 
 Items that will or may be reclassified 
  to profit or loss: 
 Translation of foreign operation                           (3,532)           7,439 
 TOTAL COMPREHENSIVE INCOME/(LOSS) 
  FOR THE PERIOD                                              3,514        (22,086) 
                                                     --------------  -------------- 
 
 Basic and diluted profit/(loss)per 
  share (LIR)                                   5             0.001         (0.003) 
                                                     --------------  -------------- 
 
 

CONDENSED CONSOLIDATED STATEMENT OF COMPREHESIVE INCOME

FOR THE SIX MONTHSED 30 SEPTEMBER 2020

 
                                              As at         As at 
                                           30 September    31 March 
                                               2020          2020 
                                  Notes        GBP           GBP 
                                           (Unaudited)    (Audited) 
 
 ASSETS 
 
 NON-CURRENT ASSETS 
 Right-of-use assets                6           184,556      70,765 
 
 CURRENT ASSETS 
 Bank                               7           343,695     350,692 
 Trade and other receivables        8           299,858     229,092 
                                                643,553     579,784 
                                         --------------  ---------- 
 CURRENT LIABILITIES 
 Trade and other payables           9           239,226     177,471 
 Lease liabilities                 10           186,116      73,825 
                                                425,342     251,296 
                                         --------------  ---------- 
 
 NET ASSETS                                     402,767     399,253 
                                         ==============  ========== 
 
 EQUITY ATTRIBUTABLE TO EQUITY 
  HOLDERS OF THE COMPANY 
 Share capital                     11         1,000,000   1,000,000 
 Translation reserve                                540       4,072 
 Accumulated losses                           (597,773)   (604,819) 
                                         -------------- 
 TOTAL EQUITY                                   402,767     399,253 
                                         ==============  ========== 
 
 

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2020

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHSED 30 SEPTEMBER 2020

 
                                                  6 months         6 month 
                                                 period ended    period ended 
                                                   30 Sept         30 Sept 
                                                     2020            2019 
                                                     GBP             GBP 
 
 Cash flow from operating activities 
 Profit/(loss) before tax                               8,367        (29,525) 
 Adjustment for: 
 Unrealised exchange loss                               1,512               - 
 Depreciation of right-of-use-assets                   49,954          47,177 
 Finance income                                      (10,998)         (3,097) 
 Tax expense                                          (1,321)               - 
 Interest on lease liabilities                          4,631           5,094 
 Gain on lease termination                            (2,461)               - 
                                               --------------  -------------- 
                                                       49,684          19,649 
 Changes in working capital 
 Increase in trade receivables                       (40,577)        (78,137) 
 (Increase)/Decrease in other receivables            (30,189)         213,852 
 Increase/(Decrease) in trade and other 
  payables                                             61,755       (241,644) 
                                               --------------  -------------- 
 Cash flow from operations                            (9,011)       (105,929) 
 Interest received                                     10,998           3,097 
                                               --------------  -------------- 
 Net cash flow generated from/(used in) 
  operating activities                                 51,671        (83,183) 
                                               --------------  -------------- 
 
 Cash flow from financing activities 
 Interest paid                                        (2,170)         (5,094) 
 Repayment on lease liability                        (57,121)        (50,642) 
                                               --------------  -------------- 
 Net cash flow used in financing activities          (59,291)        (55,736) 
 
 Net movement in cash and cash equivalents            (7,620)       (138,919) 
 Cash and cash equivalents at beginning 
  of period                                           350,692         529,278 
 Exchange gain on cash and cash equivalents               623           7,115 
                                               --------------  -------------- 
 Cash and cash equivalents at end of period           343,695         397,474 
                                               ==============  ============== 
 

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Period from 1 April 2020 to 30 September 2020 (unaudited)

 
                            Share capital   Translation   Accumulated    Total 
                                              reserve        losses 
                                 GBP                GBP       GBP         GBP 
 As at 1 April 2020             1,000,000      4,072        (604,819)   399,253 
 Profit for the period                  -             -         7,046     7,046 
 Translation of foreign 
  operation                             -     (3,532)               -   (3,532) 
                           --------------  ------------  ------------  -------- 
 Total comprehensive 
  loss for the period                   -     (3,532)           7,046     3,514 
                           --------------  ------------  ------------  -------- 
 
 As at 30 September 2020        1,000,000       540         (597,773)   402,767 
                           ==============  ============  ============  ======== 
 

Period from 1 April 2019 to 30 Sept 2019 (unaudited)

 
                                  Share capital           Translation       Accumulated    Total 
                                                            reserve            losses 
                                       GBP                        GBP           GBP         GBP 
 As at 1 April 2019                   1,000,000            (11,721)           (589,509)    398,770 
 Initial application 
  of IFRS 16                                  -              -                  (1,395)    (1,395) 
                                 --------------      ----------------      ------------  --------- 
 As at 1 April 2019 (Restated)        1,000,000          (11,721)             (590,904)    397,375 
                                 --------------      ----------------      ------------  --------- 
 Profit for the period                        -                     -          (29,525)   (29,525) 
 Translation of foreign 
  operation                                   -                 7,439                 -      7,439 
                                 --------------          ------------      ------------  --------- 
 Total comprehensive 
  loss for the period                         -                 7,439          (29,525)   (22,086) 
                                 --------------          ------------      ------------  --------- 
 
 As at 30 September 2019              1,000,000             (4,282)           (623,894)    371,824 
                                 ==============          ============      ============  ========= 
 
 

Period from 1 April 2019 to 31 March 2020 (audited)

 
                                  Share capital   Translation   Accumulated    Total 
                                                    reserve        losses 
                                       GBP                GBP       GBP         GBP 
 As at 1 April 2019                   1,000,000    (11,721)       (589,509)    398,770 
 Initial application 
  of IFRS 16                                  -        -            (1,395)    (1,395) 
                                 --------------  ------------  ------------  --------- 
 As at 1 April 2019 (Restated)        1,000,000    (11,721)       (590,904)    397,375 
                                 --------------  ------------  ------------  --------- 
 Loss for the period                          -             -      (13,915)   (13,915) 
 Translation of foreign 
  operation                                   -        15,793             -     15,793 
                                 --------------  ------------  ------------  --------- 
 Total comprehensive 
  loss for the year                           -        15,793      (13,915)      1,878 
 
 As at 31 March 2020                  1,000,000         4,072     (604,819)    399,253 
                                 ==============  ============  ============  ========= 
 

NOTES TO THE INTERIM FINANCIAL STATEMENTS

FOR THE SIX MONTHSED TO 30 SEPTEMBER 2020

   1.   GENERAL INFORMATION 

The Company was incorporated in England and Wales on 26 February 2016, as a public company limited by shares under the Act. The principal legislation under which the Company operates is the Act. The registered office of the Company is at the offices of London Registrar, Suite A, 6 Honduras St, London EC1Y 0(TH) United Kingdom.

Shares of the Company are traded on London Stock Exchange's main market for listed securities since 2017.

   2.   ACCOUNTING POLICIES 

Basis of preparation

The condensed financial information for the period ended 30 September 2020 and 30 September 2019 have been prepared in accordance with IAS 34, Interim Financial Reporting. The condensed financial information is unaudited and does not constitute statutory financial statements. The comparative interim financial information covers the period from 1 April 2019 to 30 September 2019.

The principal accounting policies used in preparing the interim financial statements are the same as those applied in the Company's financial statements as at and for the year ended 31 March 2020, which have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union ("IFRS") issued by the International Accounting Standards Board ("IASB"), including related interpretations issued by the International Financial Reporting Interpretations Committee ("IFRIC"). The auditors' report on those accounts was unqualified and unmodified.

The condensed financial information is presented in British Pound Sterling ("GBP").

The interim financial statements for the six months ended 30 September 2020 was approved by the Directors on 16 December 2020.

Going concern

These interim financial statements have been prepared on a going concern basis.

The Board's review of the accounts, budgets and financial plan leads the directors to believe that the Company has sufficient resources to continue operation for the foreseeable future. The financial accounts are therefore prepared on a going concern basis.

The COVID-19 pandemic led to movement controls in Malaysia from March 2020 onwards which have the impact including (i) staff may be unable to attend their normal place of work and fulfil their normal duties due to falling ill or being required to self-isolate: (ii) the efficiency of our operation may be reduced; (iii) the various providers of 3rd party infrastructure used to supply our services may be unable to cope with the increased demands placed upon them.

These are mitigated by: (i) the Group has proven technology to enable most employees to carry out their duties remotely; (ii) the Group has a strong balance sheet with no gearing, and be able to access equity financing (if required) to cover any temporary pressure on working capital.

   3.   CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS 

The preparation of unaudited interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses for the current and its corresponding financial period under review. Actual results may differ from these estimates.

In preparing the unaudited interim financial statements, the significant judgements made by the management in applying the Company's accounting policies and the sources of estimates uncertainty were consistent as those applied to the 2020 Audited Financial Statements.

There were no changes in estimates of amounts of the Company that may have a material effect on financial period ended 30 September 2020.

   4.   REVENUE 

Revenue represents the fair value of the consideration received or receivables for communication services. Revenue is recognised when it is probable that the economic benefits associated with a transaction will flow to the Company and the amount of revenue and associated costs can be measured reliably and over the period to which the charges relate.

All revenue derived from South East Asia region. Revenue excludes value added tax and other sales taxes.

   5.   LOSS PER SHARE 

Basic loss per ordinary share is calculated by dividing the loss attributable to equity holders of the company by the weighted average number of ordinary shares in issue during the period. Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. There are currently no dilutive potential ordinary shares.

Loss per share attributed to ordinary shareholders

 
                                         6 months        6 months 
                                        period ended    period ended 
                                        30 September    30 September 
                                            2020            2019 
 Profit/(Loss) for the period (GBP)        7,046         (29,525) 
 Weighted average number of shares 
  (Unit)                                10,000,000      10,000,000 
 Basic and diluted profit/(loss) 
  per share (GBP)                            0.001          (0.003) 
 
   6.   RIGHT-OF-USE 
 
                                 6 months        6 months      Year ended 
                                period ended    period ended    30 March 
                                30 September    30 September      2020 
                                    2020            2019 
                                    GBP             GBP           GBP 
                                 Unaudited       Unaudited      Audited 
 Cost 
 Balance at beginning of 
  period                             188,707         188,707      188,707 
 Addition during the period          210,922               -            - 
 Termination of lease              (188,707)               -            - 
                              --------------  --------------  ----------- 
 Balance at end of period            210,922         188,707      188,707 
                              --------------  --------------  ----------- 
 Accumulated depreciation 
 Balance at beginning of 
  period                           (117,942)        (23,588)     (23,588) 
 Charges for the period             (49,954)        (47,177)     (94,354) 
 Termination of lease                141,530               -            - 
                              --------------  --------------  ----------- 
 Balance at end of period           (26,366)        (70,765)    (117,942) 
                              --------------  --------------  ----------- 
 
 Net book value                      184,665         117,942       70,765 
                              --------------  --------------  ----------- 
 

The Group subsidiary leased an office which the subsidiary has entered into a non-cancellable operating lease agreement. The lease is for a period of 24 months operating lease agreement with an option to renew the lease for a further 12 months.

   7.   BANK 

Cash and Cash equivalents are denominated in the following currencies:

 
                             As at         As at 
                          30 September    31 March 
                              2020          2020 
                              GBP           GBP 
 Great Britain Pound            20,327      20,703 
 Singapore Dollar               19,508      19,514 
 United States Dollar           27,265      26,667 
 Malaysia Ringgit              276,595     283,808 
                        --------------  ---------- 
                               343,695     350,692 
                        --------------  ---------- 
 
   8.   TRADE AND OTHER RECEIVABLES 
 
                          As at         As at 
                       30 September    31 March 
                           2020          2020 
                           GBP           GBP 
 Trade receivables          250,801     210,224 
 Deposit                     23,585           - 
 Other receivables           25,472      18,868 
                            299,858     229,092 
                     --------------  ---------- 
 
   9.   TRADE AND OTHER PAYABLES 
 
                                        As at         As at 
                                     30 September    31 March 
                                         2020          2020 
                                         GBP           GBP 
 Amount due to related companies                -      89,674 
 Amount due to directors                    6,066       4,166 
 Trade creditors                          208,147      35,847 
 Accruals                                   9,222      33,800 
 Other payables                            15,791      13,984 
                                          239,226     177,471 
                                   --------------  ---------- 
 

10. LEASE LIABILITIES

Lease liabilities are payable as follow:

 
                           As at         As at 
                        30 September    31 March 
                            2020          2020 
                            GBP           GBP 
 Less than one year          103,601      73,825 
 More than one year           82,515           - 
                             186,116      73,825 
                      --------------  ---------- 
 

11. SHARE CAPITAL

Ordinary shares of LIR1 each

 
                                              As at         As at 
                                           30 September    31 March 
                                               2020          2020 
                                               GBP           GBP 
 Paid up: 
 10,000,000 ordinary shares at LIR0.10 
  each                                      1,000,000     1,000,000 
 

At 31 March 2020 and 30 September 2020, the total issued ordinary share of the Company were 10,000,000.

12. SEASONAL OR CYCLICAL FACTORS

There are no seasonal factors that materially affect the Group's operation.

13. RELATED PARTY TRANSACTIONS

In 2017 the company entered into an agreement with a third party which provides consultancy service agreement in relation to the listing exercise of the Company. Orient Management Services Limited is partly owned by Sayed Mustafa Ali, directors of the Company.

 
                                           As at         As at 
                                        30 September    31 March 
                                            2020          2020 
                                            GBP           GBP 
 Amount due to related parties 
  - Orient Managed Services Limited          -            44,391 
  - Orient Telecoms Sdn Bhd                  -            45,283 
 Amount due to directors 
  - Sayed Mustafa Ali                          1,666       1,666 
  - Ross Andrews                               1,250       1,250 
  - Leon Santos                                1,250       1,250 
  - Wong Chee Keong                            1,900       - 
 

The amount due to related party is interest-free and they are payable on demand.

Sayed Mustafa Ali is a director of both, the Company and Orient Telecoms Sdn Bhd

14. SUBSEQUENT EVENT

There were no subsequent events after the reporting period.

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END

IR TFBRTMTABMLM

(END) Dow Jones Newswires

December 16, 2020 03:02 ET (08:02 GMT)

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