Sealand Capital Galaxy Limited Publication of Annual Report (5009F)

TIDMSCGL

RNS Number : 5009F

Sealand Capital Galaxy Limited

29 October 2018

For immediate release: 07.00, 29(th) October 2018

Sealand Capital Galaxy Limited

("Sealand", or the "Company")

Publication of Annual Report

Sealand Capital Galaxy Limited, a company engaged in the investment and acquisition of IT and social media businesses with high growth potential, announces that it has today published its Annual Report and Financial Statements for the year ended 31 December 2017 with respect to the Company and its subsidiaries (the "Group"). The Annual Report and Financial Statements are available to view on the Company's website at http://scg-ltd.com/.

A copy of the Annual Report and Financial Statements has been submitted to the National Storage Mechanism and will shortly be available for inspection at www.morningstar.co.uk/uk/NSM.

Key points

   -      Disposal of the Company's entire interest in SecureCom Media Holdings Limited ("SecureCom"). 

- Loss of GBP8,027,414 (2016: loss of GBP250,839) which was mainly due to the provision of impairment losses on goodwill and intangible assets of GBP5,728,679 and GBP1,586,394 made in connection with the social media segment which arose from the acquisition of SecureCom.

- As at 31 December 2017, the Group has cash and cash equivalent balances, net liabilities and net current liabilities of GBP1,772,507, GBP2,200,751, and GBP2,214,960 respectively.

As SecureCom was disposed after the financial reporting date, for better interpretation of the Group's performance, SecureCom should be excluded from the above indicators. Once SecureCom is excluded, the adjusted cash and cash equivalent balances, the adjusted net assets (turns from net liabilities, as mentioned above, to net assets) and the adjusted net current assets (turns from net current liabilities, as mentioned above, to net current assets) of the Group were GBP1,608,896, GBP1,640,368, and GBP1,626,531, respectively. With the adjusted position with respect to performance and taking account of the disposal of SecureCom, the Directors believe that the Group is in a healthy position to develop its new business pipeline.

Future Strategy and Outlook

The Group is focused on selecting attractive investment opportunities to strengthen and extend its business scope and has maintained prudent and disciplined financial management to ensure its sustainability. Apart from diversifying into new business segments and in line with its strategy, the Group also intends to expand its geographical focus.

The Group will continue to be watchful of market developments of each business and will manage its investment portfolio carefully with a view to improving overall asset quality.

Nelson Law, Executive Chairman commented:

"It is imperative that this set of results are given some context given the disclaimer of opinion provided by the Auditors. It should be noted that at the time of the reverse takeover of SecureCom all interested parties, including the auditors, signed off on the revenue recognition, but they have now questioned how it is to be reported.

Importantly, the disposal of SecureCom, which was done following an extensive executive review and in the best interests of shareholders, was completed in June 2018. Sealand will now focus on the substantial opportunities in WeChat Pay and WeChat Advertising, which lie ahead for the business.

I would like to reiterate what was said in June, that Sealand is determined to build a strong, robust business focused on the opportunities and synergies between the Chinese market, the United Kingdom, UAE and Europe, especially in the mobile payment, advertising and gaming sectors. We will continue to deploy our capital to add further impressive companies to our portfolio while providing growth and returns to our shareholders."

-Ends-

Enquiries

 
 Sealand Capital Galaxy Limited 
 Law Chung Lam Nelson, Executive Chairman    + 44 7537959788 
 
 Belvedere Communications 
 John West                                   [phone] 
 Kim van Beeck                               [phone] 
 

Notes to Editors:

-- Sealand Capital Galaxy Limited (LSE: SCGL) is engaged in the investment and acquisition of IT and social media businesses in the APAC region with high growth potential.

-- The Company's Shares are traded on the Official List of the London Stock Exchange's main market for listed securities under the ticker SCGL.

   --     Further information on Sealand is available on its website http://www.scg-ltd.com/ 

Disclaimer

This announcement contains certain forward-looking statements. These statements are made by the Company's directors in good faith based on the information available to them up to the time of their approval of this announcement but such statements should be treated with caution due to inherent uncertainties, including both economic and business factors, underlying such forward-looking information. This announcement has been prepared solely to provide additional information to shareholders to assess the Group's strategies and the potential for those strategies to succeed. This announcement should not be relied on by any other party or for any other purpose.

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 [e-mail] or visit www.rns.com.

END

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October 29, 2018 03:00 ET (07:00 GMT)