TIDMOCT
RNS Number : 4024X
Octagonal PLC
24 November 2017
24 November 2017
Octagonal plc
("Octagonal" or the "Company")
Unaudited Half-Year Results for the Six Months to 30 September
2017
Octagonal (AIM: OCT), announces its unaudited half-year results
for the six months to 30 September 2017
Summary of Financial highlights for the six months to 30
September 2017
-- Unaudited revenues increased by 17.4% to GBP3.3m in the
reporting period (September 2016: GBP2.9m and audited 12 months to
31 March 2017 GBP5.6m)
-- Synergis Capital Plc, 72.4% owned subsidiary of the Group
raised external funding of over GBP1m during the period.
-- Unaudited adjusted operating profit excluding Synergis
Capital plc consolidated costs and like for like basis comparison
was GBP1.5m (2016: GBP1m and audited 31 March 2017 GBP1.9m).
-- Unaudited operating profit including additional consolidated
cost of GBP482,000 in relation to the new business start up -
Synergis Capital Plc was GBP1.1m (September 2016: GBP1.1m and
audited 31 March 2017: GBP1.9m)
-- Net Assets GBP8.2m (September 2016: GBP6.1m and 31 March 2017: GBP6.6m)
-- Cash balance of GBP5.3m (September 2016: GBP2.6m and audited 31 March 2017: GBP3.8m)
Interim period trading highlights:
-- Cost efficiencies and margin improvement continues within
Global Investment Strategy UK Ltd ("GIS") Significant work
continues being undertaken to improve processing efficiencies,
client reporting and reducing frictional costs; as a result net
margins have improved from 40% to 47.5% over the comparable
period.
-- Additional services to clients - Asset Management and
enhanced FX, Futures and Options trading services made a positive
contribution in the period. This continues the Company's strategy
of organically growing, offering a broader range of services to
clients where it sees long term value.
-- Corporate finance activities made a positive contribution in the period for the first time.
Business Overview
Trading results
The revenue for the six months to 30 September 2017 from
continuing operations was GBP3.3m (September 2016: GBP2.9m), a
17.4% increase on a like for like basis. Operating profit amounted
to GBP1.1m with additional consolidated cost of GBP482,000 in
Synergis Capital Plc ("Synergis), compared with GBP1m in the same
period last year. Gross profit margins remain strong at 78%
(September 2016: 68%) with operating profit margins reduced to 31%
due to the additional consolidated Synergis costs (September 2016:
38%).
In addition Net assets and Cash rose to GBP8.2m million
(September 2016: GBP6.1m) and GBP5.3m (September 2016: GBP2.6m and
audited 31 March 2017: GBP3.8m), respectively
Included in the operating profit above were consolidated 'PLC'
costs for the interim period that remained low at GBP65,000, and
pre revenue start-up cost for Synergis for the period were
GBP482,000.
Synergis Capital Plc is 72.4% owned subsidiary of the group and
it raised external funding of over GBP1m during the period.
Board Changes
On 7(th) June 2017, the Company announced that Grant Roberts,
Non Executive Chairman stepped down from the board due to increased
demand from his other business commitments and John Gunn was
appointed Chairman initially on an interim basis.
Other activities post reporting period:
On 31st October 2017, the Company announced that the Court
approved the capital reduction of the Company. As a result, all
issued deferred shares in the capital of the Company and the
Company's share premium account were all cancelled. The effect of
these actions had been to eliminate the deficit on distributable
reserves enabling the Company to declare dividends.
On 21 November 2017, the company announced the soft launch of
the "SynerGIS" bond offering through its subsidiary GIS and was
available for pre-registration.
Dividend
On 7(th) November 2017, the Company declared a dividend of 0.1
pence per share payable on 15(th) December 2017.
John Gunn, CEO and Chairman, reports:
"This is a good set of results for the half year and this
reflects the work done by the team to improve processing
efficiencies and increasing margins.
We also managed to improve revenues and profits in spite of the
negative impact of a slightly strengthened pound as our revenues
are by majority USD and to a lesser extent Euro and GBP
denominated.
This was the first time we have seen our corporate finance
activities beginning to make a positive contribution to revenues
and profits. We will naturally continue to develop these
opportunities, although there is no certainty of maintaining these
levels of revenue, which were below 10% of total revenues for the
period.
Whilst our business remains subject to fluctuations in global
markets, we continue to be confident in the outlook for the
remainder of the year.
Our application for our Hong Kong license continues and we'll
update shareholders when there are meaningful developments.
Finally I am please to announce that the company soft launched
the SynerGIS Bond offering inviting depositors to pre
register.'
For further information please visit www.octagonalplc.com or
contact:
+44 (0) 20
Octagonal Plc 7048 9400
John Gunn, CEO
Beaumont Cornish Limited (Nominated
Adviser and Broker) +44 (0) 20
James Biddle / Roland Cornish 7628 3396
www.beaumontcornish.com
Unaudited Group Income Statement and statement of comprehensive
income
For the 6 months ended 30 September 2017
Unaudited Unaudited Audited
----------------------- ------------- ---------------------
30 September 30 September 31 March
2017 2016 2017
---------------------------
GBP'000 GBP'000 GBP'000
--------------------------- ----------------------- ------------- ---------------------
Revenue 3,348 2,853 5,596
Cost of sales (745) (907) (1,617)
Gross profit 2,603 1,946 3,979
Administrative expenses (1,556) (875) (2,053)
Operating profit 1,047 1,071 1,926
Other gains and losses - (168) (613)
Finance income - - -
Finance costs - (1) -
Profit before tax 1,047 902 1,313
Taxation (220) (195) (311)
Profit for the year 827 707 1,002
Attributable to:
Shareholders in the
Parent Company 932 707 1,035
Non-controlling Interests (105) - (33)
827 707 1,002
Earnings per share
attributable to owners
of the parent company
Basic and diluted
(pence per share)
From continuing and
total operations 0.166p 0.126p 0.185p
Unaudited Group Statement of Financial Position
As at 30 September 2017
Un audited Un audited Audited
------------- --------------------------- ---------
30 September 30 September 31 March
2017 2016 2017
--------------------------
GBP'000 GBP'000 GBP'000
-------------------------- ------------- --------------------------- ---------
Non-Current assets
Goodwill 2,869 2,869 2,869
Other Intangibles 169 50
Property, plant
and equipment 77 66 62
Deferred Tax asset 67 - 65
3,182 2,935 3,046
-------------------------- ------------- --------------------------- ---------
Current assets
Available for
sale investments 108 579 126
Trade and other
receivables 574 644 327
Cash and cash
equivalents 5,349 2,628 3,813
6,031 3,851 4,266
TOTAL ASSETS 9,213 6,786 7,312
Current liabilities
Trade and other
payables 309 345 286
Current tax liabilities 681 350 389
Borrowings - - -
990 695 675
-------------------------- ------------- --------------------------- ---------
Non-Current liabilities
Borrowings - - -
-------------------------- ------------- --------------------------- ---------
NET ASSETS/(LIABILITIES) 8,223 6,091 6,637
--------------------------- ------------- --------------------------- ---------
Equity
Share capital 1,104 1,104 1,104
Share premium
account 3,669 3,669 3,669
Reverse acquisition
reserve 679 679 679
Retained earnings 2,518 639 1,148
--------------------------- ------------- --------------------------- ---------
Equity attributable
to owners of the
company 7,970 6,091 6,660
Non- Controlling
interests 253 - 37
--------------------------- ------------- --------------------------- ---------
Total Equity 8,223 6,091 6,637
--------------------------- ------------- --------------------------- ---------
Unaudited Group Statement of Changes in Equity
For the 6 months ended 30 September 2017
Share Share Reverse Retained Equity Non-controlling Total
capital Premium acquisition earnings attributable interests equity
reserve to owners
of the
Company
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------- --------- --------- ------------- ---------- -------------- ---------------- --------
Balance at
1 April 2015 2,613 - - (670) 1,943 - 1,943
Total comprehensive
income for
the year - - - 603 603 - 603
Adjustment
for reverse
acquisition (1,552) 2,109 679 - 1,236 - 1,236
Proceeds
of share
issues 43 1,657 - - 1,700 - 1,700
Share issue
costs - -97 - - (97) - (97)
Balance at
31 March
2016 1,104 3,669 679 (67) 5,385 - 5,385
Total comprehensive
income for
the year - - - 1,035 1,035 (33) 1,002
Adjustment
arising from
change in
non-controlling
interest - - - 180 180 70 250
Balance at
31 March
2017 1,104 3,669 679 1,148 6,600 37 6,637
Total comprehensive
income for
the year - - - 932 932 (106) 826
Adjustment
arising from
change in
non-controlling
interest - - - 438 438 322 760
Balance at
31 March
2017 1,104 3,669 679 2,329 7,969 254 8,223
Unaudited Group Statement of Cash flows
For the 6 months ended 30 September 2017
Unaudited Unaudited Audited
------------- ------------- ---------
30 September 30 September 31 March
2017 2016 2017
GBP'000 GBP'000 GBP'000
------------------------------- ------------- ------------- ---------
OPERATING ACTIVITIES
Profit/(loss) for
the year before taxation 1,047 902 1,313
Adjusted for:
Finance expense - - -
Finance income - - -
Depreciation 7 7 21
Investment impairment 18 168 613
Operating cash flows
before movements in
working capital 1,072 1,077 1,947
(Increase)/Decrease
in trade and other
receivables (247) 61 167
Increase/(Decrease)
in trade and other
payables 22 (75) 149
Net cash from /(used
in) operating activities (225) (14) 2,263
Tax paid (200)
Net cash used in operating
activities 847 1,063 2,063
------------------------------- ------------- ------------- ---------
INVESTING ACTIVITIES
Purchase of property,
plant and equipment (14) (11) (28)
Development costs (119) (50)
Purchase of investments - - (50)
Related party repayment
of loan - 25 76
Net cash from/(used
in) investing activities (133) 14 (52))
------------------------------- ------------- ------------- ---------
FINANCING ACTIVITIES
Non-controlling interest
investment 821 - 250
Interest paid - (1) -
Net cash from/(used
in) financing activities 821 (1) 250
------------------------------- ------------- ------------- ---------
Net (decrease)/increase
in cash and cash equivalents 1,535 1,076 2,261
Cash and cash equivalents
at beginning of year 3,813 1,552 1,552
Cash and cash equivalents
at end of year 5,348 2,628 3,813
------------------------------- ------------- ------------- ---------
Notes to the interim statement
For the 6 months ended 30 September 2017
1. General information
Octagonal plc is a company incorporated in the England and Wales
with number 6214926, and whose registered office is: 2(nd) Floor, 2
London Wall Buildings, London EC2M 5PP, under the Companies Act
2006. The Company's main activity is that of a financial services
business offering a wide range of services to institutional, family
office and high net worth clients.
The Company's functional currency is Sterling. The Company's
financial statements are presented in Sterling, which is the
Company's presentational currency.
2. Basis of preparation
The financial information set out in this interim report for the
six months ended 30 September 2017 is unaudited and does not
constitute statutory accounts as defined in Section 434 of
Companies Act (2006).
The Company's statutory financial statements for the period
ended 31 March 2017, prepared under IFRS, have been filed with the
Registrar of Companies. The auditor's report on those financial
statements was unqualified and did not contain a statement under
section 498 (2) or (3) of the Companies Act 2006.
These financial statements have been prepared on a going concern
basis under the historical cost convention. The Directors believe
that the going concern basis is appropriate for the preparation of
these interim financial statements as the Company is in a position
to meet all its liabilities as they fall due. These interim
financial statements for the six months to 30 September 2017 were
approved by the Board on
22 November 2017.
3. Earnings per share
The basic earnings per share is based on the profit for the year
divided by the weighted average number of shares in issue during
the year. The weighted average number of ordinary shares for the
period ended year ended 30 September 2017 assumes that all shares
have been included in the computation based on the weighted average
number of days since issue.
Unaudited Unaudited Audited
------------- ------------- -------------
30 September 30 September 31 March
2017 2016 2017
GBP'000 GBP'000 GBP'000
----------------------------- ------------- ------------- -------------
Profit attributable
to owners of the Group GBP932,279 GBP707,000 GBP1,035,000
----------------------------- ------------- ------------- -------------
Weighted average number
of ordinary shares
in issue for basic
and fully diluted earnings 560,893,552 560,226,886 560,226,886
----------------------------- ------------- ------------- -------------
Earnings per share
(pence per share)
Basic and fully diluted: 0.166p 0.126p 0.185p
----------------------------- ------------- ------------- -------------
4. Dividend
On 7(th) November 2017, the Company declared a dividend of 0.1
pence per share payable on 15(th) December 2017.
5. Distribution
The half yearly report for the six-month period ended 30
September 2017 will shortly be available on the Company's website
(www.octagonalplc.com) or directly from the Company at its
registered address.
-ends-
The company news service from the London Stock Exchange
END
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