02 October 2013
Galleon Holdings plc("Galleon", "the Company" or "the Group")
Interim results for the six months ended 31 March 2013
Galleon Holdings plc (AIM: GON) is pleased to announce its interim results for the six months ended 31 March 2013. These interim results are being issued on the same date as the annual report and accounts for the financial year ended 30
September 2012 which contains a chairman's statement which covers the period from 1 October 2011 to date. As a result,
no separate chairman's statement for the 6 months to 31 March 2013 has been published.
Enquiries:
Galleon Holdings plc www.galleonplc.comAshar Qureshi Tel: 020 7529 3737
Nominated Adviser & Broker Cairn Financial Advisers LLP Tel: 020 7148 7900
James Caithie / Avi Robinson
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the six months ended 31 March 2013
Unaudited Six months ended 31
March
2012
Audited Year ended 30
September
2012
Note £'000 £'000 £'000
Cost of sales (3,054)(4,166)(7,840)
Gross profit 858 781 1,407
Administrative expenses (1,054) (1,676) (6,729)
Finance income - 1 3
Finance costs (74) (82) (187)
Non-controlling interest 31 61 322
Loss for the financial year attributableForeign exchange 42 (59) (100)
Total comprehensive expenditure for the period attributable to equity
- Basic and diluted 5 (9.2p) (46p) (311p)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the six months ended 31 March 2013
Share based payments -----9696-96
Transactions with owners - - - - - 96 96 - 96
Loss for the year and total recognised income and expenditure for the period
- - - - - (775) (775) (61) (836)
Foreign exchange gain - - - - (59) - (59) - (59)
Total comprehensive (expenditure) for the period
- - - - (59) (775) (834) (61) (895)
Share based payments -----(72)(72)-(72)
Transactions with owners - - - - - (72) (72) - (72)
Loss for the year and total recognised income and expenditure for the period
- - - - - (4,438) (4,438) (261) (4,699)
Foreign exchange gain - - - - (41) - (41) - (41)
Total comprehensive (expenditure) for the period
- - - - (41) (4,510) (4,551) (261) (4,812)
At 30 September 2012 (audited) 1,674 26,269 9,601 210 2,389 (40,134) 9 (441) (432) Share based payments --------- Transactions with owners - - - - - - - - -
Loss for the year and total recognised
income and expenditure for the period
- - - - - (154) (154) (31) (185)
Foreign exchange gain - - - - 42 - 42 - 42
Total comprehensive (expenditure) for the period
- - - - 42 (154) (112) (31) (143)
*Retained earnings include a share based payment reserve of £380,000 at 31 March 2013 (31 March 2012: £452,000, 30 September 2012: £380,000).
CONSOLIDATED STATEMENT OF FINANCIAL POSITION At 31 March 2013
Unaudited
31 March
2012
Audited
30 September
2012
Property, plant and equipment - 311 - Goodwill - 3,049 - Intangible assets 17 412 17
17 3,772 17
Inventories - 1,071 486
Trade and other receivables 1,864 2,576 1,500
Cash and cash equivalents 170 444 322
2,034 4,091 2,308
Trade and other payables 2,294 2,380 1,891
Borrowings 300 850 700
Corporation Tax 30 253 166
Share capital 1,674 1,674 1,674
Reserves (1,775) 2,886 (1,665)
Non-controlling interest in equity (472) (180) (441) Total equity (573) 4,380 (432) Total equity and total liabilities 2,051 7,863 2,325
STATEMENT OF CONSOLIDATED CASH FLOWS For the six months ended 31 March 2013
Unaudited Six months ended 31
March
2012
Audited Year ended 30
September
2012
(Loss) for the period (185) (836) (5,535) Taxation (85) (140) 29
Net finance costs 74 81 184
Loss on sale of property, plant and equipment - - 24
Depreciation of property, plant and equipment 15 110 159
Impairment of property, plant and equipment - - 256
Impairment of Goodwill - - 3,017
Impairment of intangible assets - - 545
Amortisation of intangible assets 5 96 232
Decrease / (increase) in inventories 499 (293) 293 (Increase) /decrease in trade and other
receivables (227) 956 1,719
Increase / (decrease) in trade and other
payables 288 313 (156) Share based payments - 96 24
Taxation received (5) 4 (14) Net interest (paid) (74)(81)(187)
Net cash inflow from operating activities 305306 591 Investing activitiesPurchase of property, plant and equipment (15) (51) (80) Purchase of intangible assets (5) (382) (676) Purchase of investment --6
Net cash outflow from investing activities (20)(433) (750) Financing activities
Receipt from borrowings - - 700
Repayment of loan (400) (100) (950)
Exchange differences on cash and cash
equivalents (37)666
Cash and cash equivalents carried forward 170 444 322
Galleon Holdings plc, a Public Limited Company is incorporated and domiciled in the United Kingdom.
Galleon Holdings plc during the period under review was primarily a publisher of digital content in China across both online and mobile platforms. It also has a Product IP Division that provides innovative marketing devices for fast moving consumable goods and an Entertainment Division that develops multi-platform branded formats designed to establish a direct, interactive relationship with the viewer.
On 30 September 2013 the Company became an investing company focussed on the natural resources and energy sectors.
The financial information set out in the interim report does not constitute statutory accounts as defined in Section
434 of the Companies Act 2006. The auditor's report on those financial statements was unqualified and did not
contain a statement under Section 498 of the Companies Act 2006. The interim report was approved by the Board on 1 October 2013.
The Company has gone through a restructuring following the approval by shareholders at a general meeting on the 30 September 2013 of the Company Voluntary Arrangement ('CVA'), the disposal of Phoenix Investment Global Limited ('the Disposal') , the share capital reorganisation, the placing of 3,906,250 new ordinary shares to Q Holdings Limited ('the Placing'), the adoption of a new policy to invest principally, but not exclusively, in the resources and energy sectors ('the Investing Policy') and a waiver under Rule 9 of the Takeover Code.
The Company has raised £350,000 through a subscription of 3,906,250 new ordinary shares on 30 September
2013. The proceeds of the Placing have been used to fund a £180,000 payment due to creditors pursuant to the CVA and the balance of £170,000 to provide the Company with working capital to implement its new investing policy.
The directors have prepared profit and loss, balance sheet and cash flow projections through to 30 September
2014, incorporating the management and other costs associated with the implementation of the new investment strategy. The projections also take account of the on-going management costs of the Group. In the event an investment is made in line with the new investment strategy, it is likely that new funding will be raised.
Taking the above into account, the Directors believe that it remains appropriate for the interim report to be prepared on a going concern basis. The interim report does not include any adjustments that would result if the assumptions detailed above are not met.
The half yearly consolidated financial report should be read in conjunction with the annual financial statements for the year ended 30 September 2012, which have been prepared in accordance with IFRS as adopted by the European Union.
The principal accounting policies of the Group are consistent with those detailed in the 30 September 2012 financial statements, which are prepared in accordance with International Financial Reporting Standards (IFRSs, as adopted by the European Union).
An analysis of segmental performance is as follows;
Unaudited period ended 31 March
Product Entertainment Entertainment
Unallocated Eliminated To
Digital
Other
£'000 £'000 £'000 £'000 £'000 £'000
From external customers 1,643 2,267 2 - - 3,912
Unaudited period ended 31 March
2012 Total
£'000 £'000 £'000 £'000 £'000 £'000
Revenue
From external customers 1,465 3,407 75 - - 4,947
From other segments - - - - - -
Segment revenues 1,465 3,407 75 - - 4,947
Profit / (loss) before taxation (40) (503) 25 (458) - (976)
Year ended 30 September 2012
Revenue
From external customers 3,094 6,062 91 - - 9,247
From other segments 162 - 380 - (542) - Segment revenues 3,256 6,062 471 - (542) 9,247
(Loss) before taxation (723) (4,497) 100 (386) - (5,506)
As at 31 March 2012
Assets 1,395 5,190 1,278 - - 7,863
Liabilities (1,091) (1,601) (791) - - (3,483) Net Assets 304 3,589 487 - - 4,380
As at 30 September 2012
Assets 386 1,227 712 - - 2,325
Liabilities (771) (1,545) (441) - - (2,757) Net Liabilities (385) (318) 271 - - (432)
£000 | £000 | £000 | £000 | £000 | £000 | ||||||
United Kingdom | 2 | 187 | - | 1,922 | 91 | 339 | |||||
China | 1,864 | 1,864 | 3,482 | 5,936 | 5,637 | 1,986 | |||||
Rest of World | 2,039 | - | 1,465 | 5 | 3,519 | - | |||||
Total | 3,912 | 2,051 | 4,947 | 7,863 | 9,247 | 2,325 |
The tax credit for the period ended 31 March 2013 arises in the UK and China after allowing for tax losses brought forward.
5. LOSS PER SHARE Unaudited 31 March 2013
Unaudited
31 March
2012
Audited
30
September
2012
Loss for the period (154) (775) (5,213)
Weighted average number of shares in 000's 1,674 1,674 1,674
Share options - - - Dilutive average weighted number of shares in 000's 1,674 1,674 1,674
Basic and diluted loss per share (pence) (9.2p) (46p) (311p)
The diluted loss per share is 9.2p (September 2012: 311p) as any amendment to the weighted average number of shares as a result of including the conversion of share options is anti-dilutive.
In line with accounting standards the weighted average number of shares used in the calculation of loss per share has been adjusted to reflect the share reorganisation on 30 September 2013.
Unaudited
31 March
2012
Audited
30 September
2012
Authorised
275,000,000 (2011: 275,000,000) ordinary shares of 1p each 2,750 2,750 2,750
Allotted, called up and fully paid
167,426,002 (2011: 167,426,002) ordinary shares of 1p each 1,674 1,674 1,674
Since the year end the Company has undertaken a share capital reorganisation.
The Company's ordinary shares were consolidated on the basis that every 100 existing ordinary shares has become 1 consolidated share. Each consolidated share has been subdivided into one new ordinary share of
£0.05 each and one deferred share of £0.95 each. The new ordinary shares carry the same rights as the
existing ordinary shares. The deferred shares will not entitle the holder thereof lo receive notice of or attend and vale alany generai meeting of the Company or lo receive a dividend or other distribution or lo participate in any return on capitai on a winding up other than the nominai amount paid on such shares following a substantial distribution lo holders of ordinary shares in the Company. The Company has the righilo purchase ali of the issued deferred shares !rom ali Shareholders far an aggregate consideration of f:D.01. As such, the deferred shares effectively have negligible value and will not be admitted lo trading on Al M. Share certificates will not be issued in respect of the deferred shares.
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