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DJ Ganapati plc Unaudited Interim Results Six Months Ended 31 July 2016

 
TIDMGANP 
 
28 October 2016 
 
                                 Ganapati Plc 
                         ("Ganapati" or "the Company") 
 
        Unaudited Interim Results for the Six Months Ended 31 July 2016 
 
Ganapati today announces its unaudited interim results for the six months ended 
31 July 2016. 
 
CHAIRMAN'S STATEMENT 
 
Review of the Six Months Period ended 31 July 2016 
 
Ganapati has, to-date, invested in and developed software for the social media 
and consumer markets. In particular, the Company's strength has been its 
innovation of smartphone application software ("Apps"). During this period 
under review the Company has opened a London office and developed pan-European 
partnerships. These will allow Ganapati to create online games with multiple 
popular content. 
 
Financial Review 
 
The unaudited results for the six-month period ended 31 July 2016 show a loss 
of (GBP8,750,140) (year to 31 January 2016: (GBP7,819,747). The loss per share was 
(28p) (year to 31 January 2016: (29p)). 
 
Total income was GBP1,337,493 (year to 31 January 2016: GBP2,296,741). Net 
liabilities at the end of the period under review were GBP16,977,331 (as at 31 
January 2016: GBP8,227,191). 
 
These financial results have been considerably affected by the movement of the 
GBP/yen rate which has created an unrealised foreign exchange loss on borrowings' 
of GBP5,706,425. The average rate throughout the period under review was 156 yen/ 
GBP and the rate applicable on 31 July 2016 was 135.5 yen/GBP. While this situation 
affects the balance sheet liabilities it does not influence, adversely, the 
ability of the Company to raise funds from Japanese investors. 
 
The Bonds bought by Japanese investors have a two-year maturity date with an 
option to renew for a further year. The Directors believe that as the early 
bonds come up for repayment, most Japanese investors will agree to a two-years 
extension of the bonds. 
 
Ganapati has begun the process of examining the potential to raise equity 
finance by the placing of new shares. This will underpin the research and 
developments costs needed to maximise the opportunities available to the 
Company. The Directors are meeting with a number of potential providers of this 
funding. 
 
Review of Operations 
 
The Company continues to develop its three Apps - BUZZPOP, ZAPPI and My List. 
As advised to shareholders in the Trading Statement made on 30 August 2016, in 
July 2016, the Company launched a new version of BUZZPOP with downloads running 
at 20,000 per month. It is hoped that if this progress is maintained, revenues 
may begin to be generated by the end of the year. 
 
However, the Directors realised that there are increasing opportunities for 
expansion in Europe. As detailed in the Trading Statement made on 3 October 
2016, the Company has established a technology business in Estonia (also 
covering Latvia) to purchase its own Remote Gaming Server. This will be hosted 
in Malta where the establishing of a subsidiary company will allow the 
integration of its operations. 
 
The Gambling Commission 
 
The Company is maintaining a constructive dialogue with the Gambling 
Commission. 
 
As announced in the Trading Statement on 3 October 2016 the Directors have 
decided to withdraw the original application for a UK Gambling Licence and to 
submit a new application in the name of its subsidiary company, Ganapati 
(Malta) Limited. This will be made to both the regulatory bodies in Malta and 
the United Kingdom. 
 
Post Period End Events 
 
The main operational events have been covered in the sections above. 
 
Additionally, Ganapati (Malta) Limited is near to completing a beta version of 
three games which will be demonstrated at the SIGMA exhibition in Malta during 
November 2016. 
 
On 30 August 2016 it was announced that Mr Mitsuya Fujimoto had been appointed 
Chief Operating Officer and Mr Taku Sawada, Chief Liaison Officer. 
 
Corporate Governance 
 
The Company runs Audit, Nominations and Remuneration Committees. The roles and 
composition of the committees are kept under regular review. 
 
Risk Assessment 
 
While during the period under review, the Company has, through its pan-European 
expansion, created new and potentially significant opportunities, the Directors 
believe there continue to be three main risks to a possible loss of value of 
the shares: 
 
Firstly, if there are further delays to the generation of revenues. 
 
Secondly, if anticipated revenue generation is below the estimates of the 
Directors. 
 
Thirdly, if the Company cannot continue to maintain the support of its Japanese 
investors and/or cannot attract further equity investment. 
 
The Directors continue to monitor risk on a daily basis. 
 
Outlook 
 
The changes in the strategic direction of Ganapati are creating new and 
potentially significant opportunities which should allow revenue generation to 
develop in 2017. 
 
 
Tony Drury 
Chairman 
 
28 October 2016 
 
 
The directors of Ganapati plc accept responsibility for this announcement. 
 
 
COMPANY CONTACT DETAILS: 
Ganapati plc 
Tony Drury 
Chairman 
Telephone: 07973 737284 
 
 
ISDX CORPORATE ADVISER: 
Alexander David Securities Limited 
David Scott -Corporate Finance 
James Dewhurst - Corporate Broking 
Telephone: +44 (0) 20 7448 9820 
http://www.ad-securities.com 
49 Queen Victoria Street, London EC4N 4SA 
 
 
 
 
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 
FOR THE SIX MONTHS ENDED 31 JULY 2016 
 
                                                              Unaudited        Audited 
                                                               6 months     Year ended 
                                                                  ended     31 January 
                                                                31 July           2016 
                                                                   2016 
 
                                        Notes                         GBP              GBP 
 
Turnover                                                      1,337,493      2,296,741 
 
Administrative expenses                                     (9,122,563)    (8,931,176) 
 
Operating loss                                              (7,785,070)    (6,634,435) 
 
Other income                                                      9,041              - 
 
Interest receivable                                                   -          2,165 
 
Interest payable                                              (686,396)      (840,803) 
 
Loss on ordinary activities before                          (8,413,225)    (7,473,073) 
taxation 
 
Taxation                                                      (287,715)      (338,000) 
 
Loss on ordinary activities after                           (8,750,140)    (7,811,073) 
taxation 
 
Non-controlling interests                                             -        (8,674) 
 
Loss for the financial period                               (8,750,140)    (7,819,747) 
 
Basic loss per share, pence                 4                      (28)           (29) 
 
 
There are no items of other comprehensive income. 
 
 
 
 
UNAUDITED STATEMENT OF CHANGES IN EQUITY 
FOR THE SIX MONTHS ENDED 31 JULY 2016 
 
                                    Ordinary    Share     Retained        Minority        Total 
                                       share  premium      deficit Non-controlling       Equity 
                                     capital                              interest 
 
                                           GBP        GBP            GBP               GBP            GBP 
 
At 31 January 2016                   308,197  396,526  (9,008,045)          76,131  (8,227,191) 
 
Loss for the period                        -        -  (8,750,140)               -  (8,750,140) 
 
At 31 July 2016                      308,197  396,526 (17,758,185)          76,131 (16,977,331) 
 
 
 
 
UNAUDITED STATEMENT OF FINANCIAL POSITION 
AS AT 31 JULY 2016 
 
                                                                Unaudited       Audited 
                                                                 6 months    Year ended 
                                                                    ended    31 January 
                                                                  31 July          2016 
                                                                     2016 
 
                                           Notes                        GBP             GBP 
 
NON-CURRENT ASSETS 
 
Intangible assets                                               8,897,175     8,007,105 
 
Tangible assets                                                    80,864        77,087 
 
Investments                                                       106,140       106,140 
 
                                                                9,084,179     8,190,332 
 
CURRENT ASSETS 
 
Debtors                                                         1,632,773     1,020,326 
 
Cash and cash equivalents                                       1,497,125     1,281,315 
 
                                                                3,129,898     2,301,641 
 
CURRENT LIABILITIES 
 
Creditors                                                       (831,998)     (584,991) 
 
NET CURRENT ASSETS                                              2,297,900     1,716,650 
 
NET ASSETS                                                     11,382,079     9,906,982 
 
NON CURRENT LIABILITIES 
 
Loans                                                        (28,359,410)  (18,134,173) 
 
                                                             (16,977,331)   (8,227,191) 
 
EQUITY 
 
Ordinary share capital                       3                    308,197       308,197 
 
Share premium                                                     396,526       396,526 
 
Non-controlling interest                                           76,131        76,131 
 
Retained deficit                                             (17,758,185)   (9,008,045) 
 
TOTAL EQUITY                                                 (16,977,331)   (8,227,191) 
 
 
 
 

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October 28, 2016 05:19 ET (09:19 GMT)

DJ Ganapati plc Unaudited Interim Results Six Months -2-

UNAUDITED STATEMENT OF CASH FLOW 
FOR THE SIX MONTHS ENDED 31 JULY 2016 
 
                                                                Unaudited      Audited 
                                                                 6 months   Year ended 
                                                                    ended   31 January 
                                                                  31 July         2016 
                                                                     2016 
 
                                            Notes                       GBP            GBP 
 
OPERATING ACTIVITIES 
 
Loss for the year                                             (8,750,140)  (7,819,747) 
 
Adjusted for: 
 
Depreciation charge                                                     -       33,021 
 
Impairment of intangible assets                                         -    4,559,700 
 
Loss on disposal of intangibles                                         -        8,067 
 
Finance income                                                          -      (2,165) 
 
Finance cost                                                      686,396      840,803 
 
Tax charge                                                        287,715      338,000 
 
Non-controlling interest                                                -        8,674 
 
Unrealised foreign exchange loss on           5                 5,706,425            - 
borrowings 
 
                                                              (2,069,604)  (2,033,647) 
 
Working capital adjustments: 
 
Increase in trade and other receivables                         (612,447)    (340,884) 
 
Increase in trade and other payables                              176,943      207,190 
 
                                                              (2,505,108)  (2,167,341) 
 
Taxation paid                                                   (217,651)    (252,245) 
 
Interest paid                                                   (686,396)    (840,803) 
 
Net cash used in operating activities                         (3,409,155)  (3,260,389) 
 
INVESTING ACTIVITIES 
 
Payments to acquire intangible assets                           (890,070)  (5,245,145) 
 
Payments to acquire tangible assets                                     -     (91,445) 
 
Interest received                                                       -        2,165 
 
Net cash used in investing activities                           (890,070)  (5,334,425) 
 
FINANCING ACTIVITIES 
 
Proceeds from issue of share capital                                    -        2,880 
 
Long term finance received                                      4,515,035    8,488,048 
 
Net cash generated by financing activities                      4,515,035    8,490,928 
 
Increase / (decrease) in cash                                     215,810    (103,886) 
 
Cash at the beginning of the year                               1,281,315    1,385,201 
 
Cash at the end of the year                                     1,497,125    1,281,315 
 
 
 
 
 
 
                         NOTES TO THE INTERIM RESULTS 
 
1.     Interim accounts 
 
The financial information set out in this interim report does not constitute 
statutory accounts as defined in section 434 of the Companies Act 2006.  The 
group's statutory financial statements for the year ended 31 January 2016, 
prepared under UK GAAP, 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. 
 
Copies of the interim report are available to view and download from the 
Company's website: www.ganapatiplc.com. 
 
2.     Accounting policies 
 
The interim financial information has been prepared in accordance with the 
recognition and measurement principles of UK GAAP, including Financial 
Reporting Standard 104, "Interim Financial Reporting", and on the same basis 
and using the same accounting policies as used in the financial statements for 
the year ended 31 January 2016. 
 
The interim financial statements have not been audited or reviewed in 
accordance with the International Standard on Review Engagement 2410 issued by 
the Auditing Practices Board. 
 
The 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 the financial statements as the Company 
is in a position to meet all its liabilities as they fall due. 
 
3.     Share capital 
 
                                                         Share capital Share premium 
 
                                                                     GBP             GBP 
 
                                                               308,197       396,526 
Allotted, called up and fully paid 30,819,712 ordinary 
shares of 1p each 
 
                                                               308,197       396,526 
 
4.     Loss per share 
 
The basic loss per share is calculated by dividing the loss attributable to 
equity shareholders by the weighted average number of shares in issue. 
 
                                                            Six months    Year ended 
                                                                 ended    31 January 
                                                               31 July          2016 
                                                                  2016     (audited) 
                                                           (unaudited) 
 
Weighted average number of shares in the period             30,819,712    26,853,713 
 
Total loss attributable to equity shareholders of the     (GBP8,750,140)  (GBP7,819,747) 
Company 
 
                                                                 (28p)         (29p) 
Basic loss per share: 
 
 
5.     Unrealised foreign exchange loss on borrowings 
 
Unrealised foreign exchange loss on borrowings represents an exchange 
difference on loans denominated in Japanese Yen. 
 
6.     Dividends 
 
No interim dividend will be paid. 
 
 
 
END 
 

(END) Dow Jones Newswires

October 28, 2016 05:19 ET (09:19 GMT)