REG - Orient Telecoms PLC - Half-year Report
14/11/2023 07:30
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RNS Number : 3720T Orient Telecoms PLC 14 November 2023
ORIENT TELECOMS PLC
("ORIENT" or the "Company")
HALF YEAR REPORT ENDED 30 SEPTEMBER 2023
ORIENT is an information technology company that offers managed services as
its core business, which include managed services in machine-to-machine
networking, solutions for internet of things (IOT), cyber security, big data
solutions as well as full spectrum of other managed services, announces its
half year report ended 30 September 2023
The interim report and accounts is available on the Company's website
at: www.orient-telecoms.com (http://www.orient-telecoms.com/)
For more information please contact:
Orient Telecoms plc
mustafa@orient-telecoms.com
Sayed Mustafa Ali
Director's Statement
I am pleased to present the interim financial statements for Orient Telecoms
Plc and its subsidiary undertaking, collectively referred to as "the Group,"
covering the six-month period ending on September 30, 2023.
Within this financial reporting period, the Group has recorded a net profit of
£14,870, resulting in an earnings per share of 0.14 pence.
Introduction
Orient Telecoms Plc has continued to operate as a sophisticated fully managed
overlay network service provider in the South East Asia Region during the past
six months. This operational paradigm has conferred distinct advantages,
reducing the imperative for substantial capital investments in proprietary
network infrastructure, setting us apart from conventional telecommunications
companies. Notably, the region has been characterized by an atmosphere of
heightened anticipation and enthusiasm concerning the comprehensive deployment
and expansion of 5G infrastructure and services by various cellular
telecommunication operators.
Opportunities in 5G Infrastructure
The widespread rollout of 5G networks in our region has created exciting
business opportunities for Orient Telecoms. Our Board is actively working on
strategies to expand our range of managed services in line with the growing
use of 5G technology. The increasing need for faster internet, driven by
data-hungry apps, makes us a valuable provider of complete solutions. This
lets telecom companies and businesses focus on what they do best while we
handle their internet and tech needs.
Enhancing Services and Technology
Orient Telecoms has continued to exhibit an unwavering commitment to
bolstering our product suite and managed service offerings. Our accomplished
technology team is dedicated to the conception and implementation of a bespoke
operating system engineered to optimize service management and operational
efficacy for our esteemed clientele.
Exploration of Artificial Intelligence (AI)
In consonance with evolving market dynamics, Orient Telecoms has embarked on a
definitive expedition into the realm of AI-driven applications, poised to
augment our extant service offerings. Preliminary negotiations with
prospective collaborators for AI-centric projects are already underway,
underscoring our relentless pursuit of innovation.
Marketing and Sales Initiatives
Throughout this reporting period, our organizational focus has remained
steadfast on refining our marketing endeavours, characterized by an
accentuated emphasis on digital marketing initiatives. Furthermore, we have
augmentatively expanded our sales personnel roster, in a concerted effort to
broaden our outreach and fortify our market presence.
Operational Excellence
Our main goal is to provide services that match what our customers need. We
are strongly committed to making sure our customer support is top-notch, so
the quality of our service always meets and often exceeds what our customers
expect.
Outlook
Based on how well we've been doing and our strong predictions, Orient Telecoms
expects to have a successful financial year ending in March 2024.
Responsibility Statement
The Board of Directors at Orient Telecoms Plc takes full responsibility for
carefully preparing the interim financial statements. We follow the rules set
by the United Kingdom's Financial Conduct Authority (DTR) and International
Accounting Standard 34 on Interim Financial Reporting (IAS 34), which is
accepted by the European Union.
We hereby affirm that, to the best of our knowledge and expertise, the interim
financial statements have been meticulously and diligently crafted in strict
compliance with IAS 34, as enshrined by the European Union. These financial
statements encompass a thorough, objective assessment of requisite
information, as prescribed by DTR 4.2.7 and DTR 4.2.8, specifically including
an elucidation of pivotal events that have transpired during the initial half
of the fiscal year and their consequential ramifications on the interim
financial statements.
Furthermore, the document provides a comprehensive overview of the principal
risks and uncertainties foreseen in the latter half of the financial period.
It also undertakes an in-depth analysis of significant related-party
transactions in the initial six months, accompanied by any noteworthy
modifications relative to the related-party transactions delineated in the
antecedent annual report.
Sayed Mustafa Ali
Director
6 months period ended 6 months period ended
30-Sep-23 30-Sep-22
Notes £ £
(Unaudited) (Unaudited)
INCOME 4 212,120 188,039
DIRECT COST (20,940) (25,081)
GROSS PROFIT 191,180 162,958
Administrative expenses (173,255) (186,481)
OPERATING (LOSS)/PROFIT 17,925 (23,523)
Other income 1,713 1,637
Finance income 1,351 708
Finance cost (6,119) (9,503)
OPERATING (LOSS)/PROFIT BEFORE TAXATION 14,870 (30,681)
Income tax expense - -
(LOSS)/PROFIT FOR THE PERIOD ATTRIBUTABLE TO EQUITY HOLDERS 14,870 (30,681)
OTHER COMPREHENSIVE INCOME
Items that will or may be reclassified to profit or loss:
Translation of foreign operation - -
TOTAL COMPREHENSIVE (LOSS)/INCOME FOR THE PERIOD 14,870 (30,681)
Basic and diluted profit per share (pence) 5 0.14 (0.31)
CONDENSED CONSOLIDATED STATEMENT OF COMPREHESIVE INCOME
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
As at As at As at
30-Sep-23 31-Mar-23 30-Sep-22
£ £ £
Notes (Unaudited) (Audited) (Unaudited)
ASSETS
NON-CURRENT ASSETS
Right-of-use assets 6 142,193 198,762 262,464
CURRENT ASSETS
Bank 7 263,148 329,792 425,066
Trade and other receivables 8 360,411 275,612 146,030
623,559 605,404 571,096
CURRENT LIABILITIES
Trade and other payables 9 68,377 59,118 75,141
Lease liability 10 47,865 98,650 100,657
116,242 157,768 175,798
NET ASSETS 649,510 646,398 657,762
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY
Share capital 11 1,000,000 1,000,000 1,000,000
Translation reserve (20,011) (13,132) 10,258
Accumulated losses (431,339) (446,209) (517,209)
548,650 540,659 493,049
NON- CURRENT LIABILITIES
Lease liabilities 10 100,860 105,739 164,713
100,860 105,739 164,713
TOTAL EQUITY AND NON -CURRENT LIABILITIES 649,510 657,762
646,398
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2023
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
6 months period ended 6 months period ended
30-Sep-23 30-Sep-22
£ £
(Unaudited) (Unaudited)
Cash flow from operating activities
(Loss)/Profit before tax 14,870 (30,681)
Adjustment for:
Translation of foreign operation (6,880)
Unrealised exchange loss 26,993
Depreciation of right-of-use-assets 56,569 52,493
Finance income (1,351) (708)
Interest on lease liabilities 6,119 8,393
69,327 56,490
Changes in working capital
(Increase)/Decrease in trade and other receivables (84,799) (20,095)
Increase/(Decrease) in trade and other payables 9,259 (20,682)
Cash flow from operations (6,213) 15,713
Interest received 1,351 708
Net cash flow generated from operating activities (4,862) 16,421
Net cash flow generated from/(used in) operating activities
Interest paid (6,119) (8,393)
Repayment on lease liability (55,663) (49,585)
Net cash flow used in financing activities (61,782) (57,978)
Net movement in cash and cash equivalents (66,644) (41,557)
Cash and cash equivalents at beginning of period 329,792 466,623
Exchange gain on cash and cash equivalents - -
Cash and cash equivalents at end of period 263,148 425,066
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
Period from 1 April 2023 to 30 September 2023 (Unaudited)
Share capital Translation reserve Accumulated losses Total
£ £ £ £
As at 1 April 2023 1,000,000 (13,132) (446,209) 540,659
Profit for the period - - 14,870 14,870
Translation of foreign operation - (6,879) - (6,879)
Total comprehensive income for the period - (6,879) 14,870 7,991
As at 30 September 2023 1,000,000 (20,011) (431,339) 548,650
Period from 1 April 2022 to 30 September 2022 (Unaudited)
Share capital Translation reserve Accumulated losses Total
£ £ £ £
As at 1 April 2022 1,000,000 (16,737) (486,528) 496,735
Loss for the year - - (30,681) (30,681)
Translation of foreign operation - 26,995 - 26,995
Total comprehensive income for the year - 26,995 (30,681) (3,686)
As at 30 September 2022 1,000,000 10,258 (517,209) 493,049
Period from 1 April 2022 to 31 March 2023 (Audited)
Share capital Translation reserve Accumulated losses Total
£ £ £ £
As at 1 April 2022 1,000,000 (16,737) (486,528) 496,735
Profit for the year - - 40,319 40,319
Translation of foreign operation - 3,605 - 3,605
Total comprehensive income for the year - 3,605 40,319 43,924
As at 31 March 2023 1,000,000 (13,132) (446,209) 540,659
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023 (continued)
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 consolidated financial information for the period ended 30 September 2023
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 2023 to 30 September 2023.
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 2023, which have been prepared in
accordance with International Financial Reporting Standards as adopted by the
UK ("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
("£").
Going concern
These interim financial statements have been prepared on a going concern
basis.
The COVID-19 pandemic lock downs in Malaysia which was implemented in March
2020 have since been removed as the country have reached its targeted
immunization and with the easing of restriction businesses are moving towards
normalisation. Hence, the Board sees significant opening up more opportunities
for businesses.
The Company is already in an active discussion with some of the potential
clients to secure new business in the forthcoming year.
The Company has enough cash balances to run its operations for next 24 months.
The Company relies on outsourcing companies to perform its international
service maintenance which helps the company to manage its cost better and also
keep the lowest possible headcount on the payroll.
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 2023 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 2023.
4. REVENUE
Revenue represents the fair value of the consideration received or receivable
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.
6 months period ended 6 months period ended
30-Sep-23 30-Sep-22
Revenue 212,120 188,039
212,120 188,039
Revenue is derived solely from Malaysia, Singapore and Thailand. Revenue
excludes value added tax and other sales taxes.
5. PROFIT PER SHARE
Basic profit 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.
Profit per share attributed to ordinary shareholders:
6 months period ended 6 months period ended
Year ended
30-Sep-23 31-Mar-2023 31-Sep-22
(Loss)/Profit for the period (£) 14,870 40,319 (30,681)
Weighted average number of shares (Unit) 10,000,000 10,000,000 10,000,000
Basic and diluted profit per share (pence) 0.14 0.40 (0.31)
6. RIGHT-OF-USE
6 months period ended Year ended 6 months period ended
30-Sep-23 31-Mar-2023 30-Sep-2022
£ £ £
Cost
Balance at beginning of period 472,598 472,598 467,262
Addition during the period - - -
Exchange difference - - 31,988
At end of period 472,598 472,598 499,250
Accumulated depreciation
Balance at beginning of period 273,836 177,822 172,486
Charges for the period 56,569 96,014 52,493
Exchange difference - - -
Balance at end of period 330,405 273,836 236,786
Net book value 142,193 198,762 262,464
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 60
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:
6 months Year ended
period ended 6 months period ended
30-Sep-23 31-Mar-23 30-Sep-2022
£ £ £
Great Britain Pound 38,423 14,520 25,163
Singapore Dollar 20,579 20,858 21,391
United States Dollar 48,374 35,410 31,334
Malaysia Ringgit 155,772 259,005 347,178
263,148 329,792 425,066
8. TRADE AND OTHER RECEIVABLES
6 months Year 6 months
period ended period ended
30-Sep-23 31-Mar-23 30-Sep-22
£ £ £
Trade receivables 189,580 142,599 73,263
Prepayment and Deposit 37,092 32,981 55,702
Other receivables 133,739 100,032 17,065
360,411 275,612 146,030
9. TRADE AND OTHER PAYABLES
6 months Year 6 months
period ended ended period ended
30-Sep-23 31-Mar-23 30-Sep-22
£ £
Amount due to directors 12,068 4,830 3,185
Trade creditors - - 3,865
Accruals 24,433 34,108 21,339
Contract liability - 4,125 -
Other payables 31,876 16,055 46,752
68,377 59,118 75,141
10. LEASE LIABILITIES
Lease liabilities are payable as follow:
6 months Year 6 months
period ended ended period ended
30-Sep-23 31-Mar-23 30-Sep-22
£ £ £
Less than one year 47,865 98,650 100,657
More than one year 100,860 105,739 164,713
148,725 204,389 265,370
11. SHARE CAPITAL
Number of £
ordinary shares
Paid up:
10,000,000 ordinary shares at ₤0.10 each 10,000,000 1,000,000
At 30 September 2023, 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
6 months 6 months
period ended period ended
30-Sep-23 30-Sept-22
£ £
Amount due to directors
- Sayed Mustafa Ali 1,251 1,250
- Wong Chee Keong 1,817 1,935
- Michael Goh Seng Kim 9,000 -
12,068 3,185
The amount due to related party is interest-free and they are payable on
demand.
14. SUBSEQUENT EVENT
On 18 October 2023, The Board of Director approved to appoint Kirubarharan
Ponnia as a Non-Executive Director. Following his appointment, Kirubarharan
will become a member of the Audit Committee and the Nomination Committee.
Subsequently, The Company announced the resignation of Michael Goh Seng Kim as
a Non-executive director of the company with effective from 19 October 2023.
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