TIDMWTS
RNS Number : 3575C
World Trade Systems PLC
28 September 2018
Company Registration Number: 01698076
WORLD TRADE SYSTEMS PLC
Unaudited half yearly condensed consolidated financial report as
at 30 June 2018
TABLE OF CONTENTS
INTRODUCTION AND KEY HIGHLIGHTS
BOARD STATEMENT
PRINCIPAL RISKS AND UNCERTAINTIES
RESPONSIBILITY STATEMENT
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE
SIX-MONTHSED 30 JUNE 2018
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30
JUNE 2018
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AT 30 JUNE
2018
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE
SIX-MONTHSED 30 JUNE 2018
NOTES TO THE CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS FOR
THE SIX MONTH PERIODED 30 JUNE 2018
INTRODUCTION AND KEY HIGHLIGHTS
The unaudited half yearly condensed and consolidated financial
statements of World Trade Systems plc (the "Company") have been
prepared using IAS 34, Interim Financial Reporting, as adopted by
the European Union. This half yearly financial report is consistent
with the policies and presentation applied to the latest published
annual financial statements of the Company as at 31 December 2017,
prepared in accordance with IAS 1 Presentation of Financial
Statements, and should be read in conjunction.
The presentation currency of World Trade Systems plc is the same
as that of its functional currency the Pound Sterling (GBP) as per
IAS 21, The Effects of Changes in Foreign Exchange Rates.
Key Highlights
Ø Turnover of GBP6.29 million (6 months ended 30 June 2017:
GBP10.14 million)
Ø Operating loss of GBP0.99 million (6 months ended 30 June
2017: Profit of GBP2.17 million)
Ø Cash and cash equivalents of GBP670,000 at 30 June 2018 (31
December 2017: GBP2.17 million)
BOARD STATEMENT
World Trade Systems plc (the 'Company') and its Chinese trading
subsidiary, Shimao (Suzhou) Biotechnology Co. Ltd ('WTS China' and
collectively referred to as the 'Group') has faced a tough
operating environment in the first half of 2018. Although the
health food market is huge in China the competition is getting
stronger. Market competition has resulted in declined sales and
profit. The Group reported a net loss of GBP1.01 million the six
months ended 30 June 2018 (30 June 2017: net profit GBP1.86
million).
Trading Activities and Prospects
During the half year to 30 June 2018, WTS China has continued to
place emphasis on event sales while diversifying into new
commercial stores. WTS China has also started to diversify its
strategy from selling health food products to exploring
opportunities in the provision of healthcare services. The Group
sees the aging population and rising standard of living in China as
a huge market opportunity for entering the health services market.
With improved wealth, the people are more willing to spend in
healthcare services such as medical check-up, cosmetology,
sanatorium retreat, nursing care, spas and gyms. Well-being is
becoming a lifestyle in China. The Group is actively researching
and exploring the various opportunities in this segment.
The Group continues to deploy resources in the international
market. The Group aims to identify new products and services in the
international market and introduce them to the Chinese market.
The Company is currently listed on the premium segment of the
main market on the London Stock Exchange with its shares suspended
from trading. The Company is actively working towards resuming
trading of its shares on the London Stock Exchange, which will be
subject, inter alia, to approval by shareholders.
Results
For the six month period ended 30 June 2018, the Group reported
sales revenue of GBP6.29 million (30 June 2017: GBP10.14 million),
a 37.9% decline compared with the same period last year. The
decline in revenue is mainly due to increasing competition and a
shift in management focus from healthcare products to services.
Event sales and marketing has been very effective in driving
market attention and sales. However, there are increasing numbers
of similar events organised by competitors and new market entrants,
especially in Eastern and Southern China. Many of these competitors
have strong financial backing from private equity funds and have
been very aggressive in their marketing and promotion strategies,
consequently, attracting customers from WTS China.
With similar costs spent on event sales, the declined sales have
resulted in declined gross profit and margin. Gross profit
decreased by GBP3.42 million, or 83.7%, from GBP4.09 million for
the six months ended 30 June 2017 to GBP665,000 for the six months
ended 30 June 2018. The fall in gross profit was mainly due to the
decrease in sales described above while incurring similar marketing
costs (cost of sales). Gross profit margins therefore decreased
from 40.3% for the six months ended 30 June 2017 to 10.6% for the
six months ended 30 June 2018.
Despite the fall in profitability, the Group has performed
credibly in the competitive market space. The Group has made
continued progress in building new sales channels. The Directors
expect the current challenging market conditions, reflected in
declining sales combined with cost pressure, to continue in the
near term. In the face of these pressures, the Group will continue
to focus on advertising and promoting brand awareness while seeking
to build its international image and developing healthcare services
as a new revenue stream.
I remain positive about the outlook of our business and
industry. I would like to thank our staff for their hard work and
commitment.
Chen Shao
Executive Director
18 August 2018
PRINCIPAL RISKS AND UNCERTAINTIES
Principal risks and uncertainties remaining during the next six
months
We operate in a constantly changing economic and social
environment that presents risks, some of which are driven by
factors we are unable to control or predict. The key risks and
uncertainties facing the Company in the remaining six months of the
financial year are described below and include measures we are
taking to mitigate these risks.
WTS China specific risks remaining during next six-months:
Risk Mitigation
The ability to grow sales WTS China hopes to expand its market reach
and build on existing success to achieve continued sales growth by;
whilst managing incentive -- market penetration achieved by entering new
payments. geographical areas.
-- diversifying to different product areas in the health
food sector. Ongoing R&D and co-operations with
international companies will allow for new products
to be developed.
-- the sales team closely monitoring incentive payments
through regular discussions with sales managers.
Increased sales incentives paid to distributors are
being based on set thresholds calculated taking into
account a number of qualitative factors. WTS China
hopes to maintain the checks and balances to ensure
that the incentive payments can be reduced over a
period of time without adversely affecting sales.
-- WTS China continuing to invest considerably in staff
training and team building in order to mitigate these
risks and to ensure that staff are fully aware of the
factors to be applied in determining their incentive
payments
------------------------------------------------------------------------
Execution risks in launching In order to avoid channel conflicts or cannibalisation,
and operating an e-commerce we plan to develop an integrated channel strategy.
platform and commercial store This will enable the Company and distributors
roll out. WTS China does to use multiple channels to reach end users.
not have prior experience The e-commerce platform has been through a
of these sales channels and thorough testing period to ensure it is fit
there are risks of cannibalisation for purpose before going live. A phased launch
and alienating the distributors will focus its e-commerce strategy initially
by competing with them. as a productivity tool for the distributors
so as to mitigate the risks outlined above.
------------------------------------------------------------------------
WTS China's products are We have factored for inflation of 3% for raw
manufactured by a third-party. material costs and 7% for manufacturing costs
We assume raw material and as a mitigate in determining total costs while
manufacturing costs will deciding the sales strategy.
remain at the current level,
but any change could have
a significant effect on profitability.
------------------------------------------------------------------------
WTS China has recognised The Group has estimated that, based on extrapolation
revenue of GBP6,290,000 during using past experience, the return rate to be
first six months of 2018. 2.2%.
Distributors have the right
to return goods if the end
customers are dissatisfied
with the products.
------------------------------------------------------------------------
Operating in the Chinese
market, WTS China is exposed Management has detailed experience of working
to various in-country risks in China and meet regularly to discuss these
including; risks and ensure that the Group is able to
× Counterfeiting: successful respond appropriately.
brands are more susceptible The Group will closely monitor the external
to counterfeiting than the environment in China to ensure it is proactively
UK. planning and strategising based on any predicted
× Taxation and trade: changes in the political, economic or social
as a company operating in environment.
China, WTS China will avoid
import taxes that affect
companies operating outside
of China.
× Economy and politics:
both Chinese politics and
the economy have behaved
unpredictably in the past.
The environment appears stable
at present but there are
potential risks from rapid
social change including social
inequality, social costs,
geopolitical tensions.
------------------------------------------------------------------------
The Group's specific risks remaining during next six-months:
Risk Mitigation
As a small but growing company The Company is committed to focusing on employee
it needs to continue to attract satisfaction in order to improve employee
and retain experienced employees retention and make it a more attractive place
with the relevant skills and to work. This includes organising more regular
experience to satisfy its team building events, non-financial rewards,
capacity and capability requirements flexible working policies and clearer lines
which will increase over time of reporting.
with listing and the increasing
business development opportunities
being pursued.
----------------------------------------------------
Managing communication between By continuing high level control of procedures
UK and China is vital in overcoming and systems in the remainder of this year
the language and time differences. we hope to mitigate this risk. Some UK managerial
staff are contracted to spend a certain proportion
of their time working in China in order to
improve communications and ensure controls
and systems are implemented consistently
in both countries. The UK head office employs
multilingual staff.
----------------------------------------------------
RESPONSIBILITY STATEMENT
The Disclosure and Transparency Rules (DTR) of the UK Listing
Authority require the Directors to confirm their responsibilities
in relation to the preparation and publication of the Interim
Financial Report (the "Report").
The Directors confirm that to the best of their knowledge:
(a) the condensed set of financial statements, for the period
ended 30 June 2018, have been prepared in accordance with the
applicable International Accounting Standard (IAS) 34 "Interim
Financial Reporting" as adopted by the EU and give a true and fair
view of the assets, liabilities, financial position and profit or
loss of the issuer, or the undertakings included in the
consolidation as a whole as required by DTR 4.2.4 R; and
(b) the Report includes a fair review of the information required by:
(i) DTR 4.2.7R, being an indication of important events that
have occurred during the first six-months of the financial year and
their impact on the condensed set of financial statements, and a
description of the principal risks and uncertainties for the
remaining six-months of the year; and
(ii) DTR 4.2.8R, being related party transactions that have
taken place in the first six-months of the current financial year
and that may have materially affected the financial position or
performance of the entity during that period, and any changes in
the related party transactions described in the last annual report
that could do so.
The Report was approved by the Board on 18 August 2018 and the
above responsibility statement signed by order of the Board.
Chen Shao
Executive Director
18 August 2018
The Directors at the date of this half-yearly financial report
are:
Robert Lee Non-Executive Chairman
Shao Chen Executive Director
AKM Ismail Executive Director
Ellen Lu Non-Executive Independent Director
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE
SIX-MONTHSED 30 JUNE 2018
6 months ended 6 months ended 12 months ended
30 June 2018 30 June 2017 31 December
(Unaudited) (Unaudited) 2017
(Audited)
Notes GBP'000 GBP'000
GBP'000
Revenue 6,290 10,136
Cost of sales (5,625) (6,049) 19,621
(14,080)
Gross profit 665 4,087
5,541
Administrative expenses (1,651) (1,921)
(3,705)
Profit/(loss) from operations (986) 2,166
1,836
Finance costs (24) -
(95)
Finance Income - 218
241
Profit/ (loss) before tax (1,010) 2,384
1,982
Income tax expense 6 - (522)
(605)
Profit/(loss) after tax (1,010) 1,862
1,377
Other comprehensive income
items that will or may be reclassified
to profit or loss:
Exchange differences on translation
of foreign operations 19 (50)
(26)
Profit/(loss) for the period
and total comprehensive income
attributable to (991) 1,812
Equity owners of the parent 1,351
Earnings per share
Basic and diluted earnings/ (11.32p) 21.27p
(loss) per ordinary share 4 15.73p
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30
JUNE 2018
6 months 6 months 12 months
ended ended ended
30 June 30 June 31
Notes 2018 2017 December
(Unaudited) (Unaudited) 2017
Assets GBP'000 GBP'000 (Audited)
GBP'000
Non-Current Assets
Property, plant and
equipment
11 1,009 1,124
Investment property 40 40 1,088
Intangible assets 12 17 5 40
Long term trade and 2,751 71 4
other 293
receivables 13 3,817 1,240
1,425
Current Assets 9 100
Inventories 502 610 38
Trade and other 670 2,147 658
receivables 2,172
Cash and cash 1,181 2,857
equivalents 2,868
4,998 4,097
4,293
Total Assets
(3,841) (1,020)
Current liabilities - (545) (2,120)
Trade and other (43)
payables (3,841) (1,565)
Current tax (2,163)
liabilities (1,275) (1,247)
6 (1,257)
Non-current (5,116) (2,812)
liabilities (3,420)
Loans and borrowings 3 (118) 1,285
873
Total liabilities
4,378 4,378
Net 97 29 4,378
assets/(liabilities) (6) (49) 97
(4,587) (3,073) (25)
Equity (3,577)
Share capital 5
Capital contribution
reserve (118) 1,285
Currency translation 873
reserve
Retained earnings
Total retained/
(deficit)
of equity attributable
to equity holders
============================== ============================== ============================
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AT 30 JUNE
2018
Share Capital contribution Currency translation Total
capital reserve reserve Retained Earnings equity
(Unaudited) GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2018 4,378 97 (25) (3,577) 873
Comprehensive income
for the year
Profit for the period - - - (1,010) (1,010)
Exchange difference - - 19 - 19
--------- ------------------------ ------------------------ ------------------ ---------
Total comprehensive
income for the year - - 19 (1,010) (991)
Contributions by and
distributions to
owners
Transaction with owners - - - - -
in their capacity as
owners
--------- ------------------------ ------------------------ ------------------ ---------
Balance at 30 June 2018 4,378 97 (6) (4,587) (118)
======================== ========= ======================== ======================== ================== =========
Share Capital contribution Currency translation Total
capital reserve reserve Retained Earnings equity
(Unaudited) GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2017 4,378 168 1 (4,954) (407)
Comprehensive income
for the year
Profit for the period - - - 1,862 1,862
Exchange difference - - (50) - (50)
--------- ------------------------ ------------------------ ------------------ ---------
Total comprehensive
income for the year - - (50) 1,862 1,812
Contributions by and
distributions to
owners
Transaction with owners
in their capacity as
owners - (139) - 19 (120)
--------- ------------------------ ------------------------ ------------------ ---------
Balance at 30 June 2017 4,378 29 (49) (3,073) 1,285
======================== ========= ======================== ======================== ================== =========
Share Capital contribution Currency translation Total
capital reserve reserve Retained Earnings equity
(Audited) GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2017 4,378 168 1 (4,954) (407)
Comprehensive income
for the year
Profit for the period - - - 1,377 1,377
Exchange difference - - (26) - (26)
--------- ------------------------ ------------------------ ------------------ ---------
Total comprehensive
income for the year - - (26) 1,377 1,351
Contributions by and
distributions to
owners
Transaction with owners
in their capacity as
owners - (71) - - (71)
--------- ------------------------ ------------------------ ------------------ ---------
Balance at 31 December
2017 4,378 97 (25) (3,577) 873
======================== ========= ======================== ======================== ================== =========
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE
SIX-MONTHSED 30 JUNE 2018
6 months ended 6 months ended 12 months ended
30 June 2018 30 June 2017 31 December
(Unaudited) (Unaudited) 2017
GBP'000 GBP'000 (Audited)
GBP'000
Operating activities
Net cash received/(used) in operating (1,496) (10)
activities 150
(1,496) (10)
Cash flows received/(used) in 150
operating activities
(8) (191)
Investing activities 11 83 (343)
Purchase of property, plant and (13) - (4)
equipment 129
Disposal of fixed assets (10) (108)
Purchase Intangible assets and (218)
other long-term assets
Net cash received/(used) in investing - -
activities - - 2
(11)
- -
Financing activities (9)
Proceeds from loans
Interest paid on loans
(1,506) (118)
Cash flows from financing activities (77)
2,172 2,265
2,265
Net change in cash and cash equivalents 4 -
from continuing operations (16)
Cash and cash equivalents at 670 2,147
beginning of period 2,172
Effect of exchange rate changes
on cash and cash equivalent
Cash and cash equivalents at
end of period
NOTES TO THE CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS FOR
THE SIX MONTH PERIODED 30 JUNE 2018
1. Reporting entity
World Trade Systems Plc ("the Company") is a company registered
and domiciled in the United Kingdom. The Company owns 100% of
Shimao (Suzhou) Biotechnology Co. Ltd ("WTS China"). WTS China was
established in June 2016 for the purpose of carrying on a new
business of supplying high-quality health food products to the
Chinese consumer market.
This condensed consolidated interim financial report is neither
audited nor reviewed by the auditors and was approved by the Board
and the Audit Committee on 18 August 2018. Copies of the interim
financial report will be available upon request from the Company's
principal place of business at First Floor, Lexham House, 14 Hill
Avenue, Amersham HP6 5BWand the Company's website at
www.worldtradesytemsplc.com.
The financial information for the six-month period ended 30 June
2018 set out in this interim report does not constitute statutory
accounts, as defined in Section 434 of the Companies Act 2006.
The Company's statutory financial statements for the year ended
31 December 2017 have been filed with the Registrar of Companies.
The auditor's report on the statutory financial statements was
unqualified and did not contain statements under Section 498(2) or
Section 498(3) of the Companies Act 2006.
2. Basis of preparation
These condensed consolidated unaudited interim financial
statements are for the six-month period ended 30 June 2018. They
have been prepared in accordance with IAS34 Interim Financial
Reporting and do not include all of the information required for
the full annual financial statements.
These condensed consolidated interim financial statements have
been prepared under the historical cost convention and in
accordance with the accounting policies adopted in the Company's
last annual financial statements for the year ended 31 December
2017. The accounting policies have been applied consistently
throughout these condensed financial statements.
3. Loans and borrowings
Loan from related parties
As at 30 June 2018, the amount due to Kudrow Finance Limited, a
shareholder of the Group was GBP847,000 (31 December 2017:
GBP836,000). The loan is interest free, unsecured and repayment
date has been extended to 31 December 2020. The loan has been
discounted using a market rate of 3%.
Prior to 1 July 2017, the loans carried interest at the rate of
3% per annum. Kudrow has waived the interest with effect from 1
July 2017.
In order to support the re-listing process, Kudrow has agreed to
the following:
-- total loans outstanding will not incur interest;
-- the intention (but without any obligation) is for the loan to
be converted to shares upon the proposed re-listing.
Other loans
As at 30 June 2018, other loans amounting GBP428,000 (31
December 2017: GBP421,000). The loans are unsecured, interest
bearing at a rate of 1% per annum and repayable in 2019.
4. Profit per ordinary share has been calculated as follows:
6 months to 6 months to 12 months to
30 June 2018 30 June 2017 31 December
2017
Profit/ (Loss) attributable to ordinary
shareholders (GBP'000) (991) 1,862 1,377
Weighted average number of shares 8,753,867 8,753,867 8,753,867
Earnings/ (loss) per share - basic
and diluted (pence) (11.32) 21.27 15.73
5. Called up share capital
Allotted, Called up At 30 June 2018 At 30 June 2017 At 31 December
and fully paid 2017
Number GBP000 Number GBP000 Number GBP000
Ordinary shares of 1p
each 8,753,867 88 8,753,867 88 8,753,867 88
Deferred shares of 49p
each 8,753,867 4,290 8,753,867 4,290 8,753,867 4,290
------- ------- -------
4,378 4,378 4,378
------- ------- -------
The deferred shares do not entitle the holder to payment of any
dividend or other distribution or to receive notice of or attend or
vote at any General Meeting of the company or on a return of
capital to the repayment of the amount paid on such deferred shares
until after repayment of the capital paid up on the ordinary shares
together with payment of GBP1,000,000 on each ordinary share and
the Deferred Shares shall not be capable of transfer at any time
other than with the consent of the Directors.
6. Taxation
There is no taxation charge in respect of the holding company
for the six-months ended 30 June 2018 and 30 June 2017 as the
Company is still carrying unutilised tax losses.
At this report date, the Group and Company had unused tax losses
as follows:
At 30 June 2018 At 30 June 2017 At 31 December
GBP000 GBP000 2017
GBP000
Reconciliation of carried forward
tax losses:
Profit/(Loss) arising during
the period (203) 296 113
Losses brought forward (1,838) (1,951) (1,951)
Unutilised tax losses carried
forward
(2,041) (1,655) (1,838)
---------------------------- ---------------------------- ----------------------------
A deferred tax asset has not been recognised in respect of these
losses. Should the losses be utilised in the future the estimated
value of the deferred tax asset not recognised, at a standard rate
of 19%, is GBP388,000 (as at 30 June 2017: GBP314,000 and 31
December 2017: GBP349,000). In future the standard tax rate will
reduce to 17%.
7. Related party transactions
Loan from Kudrow Finance Limited
At 30 June 2018, loan for related party was GBP847,000 (31
December 2017: GBP836,000). See note 3 Loans and Borrowings for
further details.
Directors' transactions
Robert Lee, the Non-Executive Chairman, is the principal of
Robert Lee Law Offices. Robert Lee is also a Director and owner of
Proclass Limited, a company incorporated in the British Virgin
Islands that provides company secretarial and nominee services.
Proclass has been the sole corporate director of Kudrow since
September 2004. A balance of GBP35,232.63 was due to Robert Lee Law
Offices but was waived on 21 February 2018.
8. Financial Instruments
Financial assets and liabilities are recognised when the Group
becomes a party to the contractual provisions of the
instrument.
-- Trade and other receivables
Trade and other receivables are measured at fair value on
initial recognition, and are subsequently measured at amortised
cost using the effective interest method. Appropriate allowances
for estimated irrecoverable amounts are recognised in profit or
loss when there is objective evidence that the asset is impaired.
The allowance recognised is measured as the difference between the
asset's carrying amount and the present value of estimated future
cash flows discounted at the effective interest rate computed at
initial recognition.
-- Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand
deposits and other short term highly liquid investments that are
readily convertible to a known amount of cash and are subject to an
insignificant risk of changes in value.
-- Trade and other payables
Trade and other payables are initially measured at fair value,
and are subsequently measured at amortised cost using the effective
interest rate method.
-- Borrowings
Borrowings are recognised initially at fair value, net of direct
issue costs. Finance costs are accounted for on an accruals basis
and are charged to profit or loss using the effective interest
method.
-- Equity instruments
An equity instrument is any contract that evidences a residual
interest in the assets of the Group after deducting its
liabilities. Equity instruments issued by the parent Company are
recorded as the proceeds received net of direct issue costs.
-- Recognition criteria of cash and cash equivalents
Cash comprises cash on hand and deposits that can be readily
withdrawn on demand. Cash equivalents include those investments
having short holding term (normally will be due within three months
from the day of purchase), with strong liquidity and easy to be
exchanged into certain amount of cash that can be measured reliably
and have low risks of change.
The Company has no financing facility with its bankers and is
financed by the consulting fee it charges its wholly owned
subsidiary in China. The Board monitors cash flows, cash balances
and on-going forward requirements on a monthly basis.
The Company had cash on deposit with its bankers of GBP59,000 as
at 30 June 2018 (31 December 2017: GBP194,000). At the Group level,
the cash position was at a healthy GBP670,000.
9. Dividend policy
The Directors take a prudent approach to making dividend
payments and will make payments only when it is commercially viable
to do so, subject to the availability of distributable equity
reserves.
10. Operating segment
As the Group sells only healthcare products in China, management
deems that to be the only operating segment.
11. Property, plant and equipment
Leasehold Fixtures and Plant and Computer Motor vehicles Assets under
improvement fittings machinery equipment GBP'000 construction Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 1 January
2018 189 53 134 40 405 399 1,220
Additions - 7 - 1 - - 8
Disposal - - - - (36) - (36)
FX Movement 3 1 2 1 6 5 18
------------- ------------- ------------- -------------- -------------- ------------- ---------
At 30 June 2018 192 61 136 42 375 404 1,210
------------- ------------- ------------- -------------- -------------- ------------- ---------
Accumulative depreciation
At 1 January
2018 65 6 11 14 36 - 132
Additions 33 3 7 7 20 - 70
Disposal - - - - (4) - (4)
FX Movement 1 - - 1 1 - 3
------------- ------------- ------------- -------------- -------------- ------------- ---------
At 30 June 2018 99 9 18 22 53 - 201
------------- ------------- ------------- -------------- -------------- ------------- ---------
Net book value
At 30 June 2018 93 52 118 20 322 404 1,009
------------- ------------- ------------- -------------- -------------- ------------- ---------
At 1 January
2018 124 47 123 26 369 399 1,088
------------- ------------- ------------- -------------- -------------- ------------- ---------
12. Intangible assets
Patents
GBP000
At 1 January 2018 4
Additions 13
Charge for the year -
FX Movement -
--------
At 30 June 2018 17
--------
13. Long term trade and other receivables
At 30 June 2017 At 31 December
GBP000 2017
GBP000
Prepayment 140 293
Advance to 3(rd) party 2,611 -
---------------- ---------------
2,751 293
---------------- ---------------
The Advance to 3(rd) party is unsecured, interest free and
repayable on demand.
14. Financial instruments' fair value measurement
The Group considers that the carrying amount of its financial
assets and financial liabilities are a reasonable approximation of
their fair value.
Financial assets and financial liabilities measure at fair value
in the statement of financial position are grouped into one of the
three Levels of a fair value hierarchy. The fair value hierarchy
has the following levels:
-- 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 asset or liability that are not
based on observable market data (unobservable inputs).
The fair value measurements have been categorised in their
entirety at Level 1.
The Group will review this categorisation periodically in line
with our interim and annual accounting reporting. This will
determine when transfers between level 1 and level 2 are deemed to
have occurred.
The group interest charges on loans and borrowings are based on
the fair value of 3% p.a.
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.
END
IR FVLFLVKFBBBF
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