Back to all announcements

DJ Ganapati plc Audited Annual Results for the year ended 31 Jan 2017

 
TIDMGANP 
 
30 June 2017 
 
                                 Ganapati plc 
                         ("Ganapati" or "the Company") 
 
           Audited Annual Results for the year ended 31 January 2017 
 
Ganapati Plc are pleased to report its audited annual results for the twelve 
months ended 31 January 2017. 
 
CHAIRMAN'S STATEMENT 
 
Review of the Twelve Months Period ended 31 January 2017 
 
I am pleased to announce the financial results for the year ended 31 January 
2017 for Ganapati Plc ("Ganapati" or "the Company"). By any measure this has 
been a period of extraordinary development. This has required significant 
capital expenditure but your directors believe that the start of possible 
sustained profitability is within reach, albeit not for another two years. 
 
Ganapati is a British registered Public Limited Company. It was founded in 
Tokyo where it is based in the prestigious Roppongi IT centre. It continues to 
develop software ("Apps") for the social media and consumer games markets: BUZZ 
POP, a free app for communications involving video messaging, Zapppi, an 
instant billboard commentary service and MY list, a curation service for the 
building up of lists. These are intensely competitive products but your 
directors remain firmly of the belief that the early signs of revenue 
generation that they are seeing augurs well for the future. 
 
During the year under review your directors realised that the solid base 
already established has global potential within the entertainment sector using 
Japanese culture-based styles of imagery, animation and technology. It is the 
Company's unique ability to bring these advantages to its product range by 
implementing its branding into the iGaming industry in Europe. Ganapati is thus 
investing in people, processes and entertainment platforms. It is using social 
media to spread its message starting in Europe. 
 
The Company is working through third parties for licensing purposes including 
involving the Malta Gaming Authority ("MGA"). It will generate revenues from 
bets placed through its games, amounting to 10% of the net gaming yield. Some 
revenue will be shared with the licensed company and aggregators through whom 
the bets are placed. It has purchased a competitively priced Remote Gambling 
Server ("RGS") software suite which it has further developed and renamed 
Ganapati Gaming Platform ("GGP"). 
 
The Ganapati Group now includes: 
 
Ganapati Malta Limited 
GANAPATI APPS Co. Ltd. (20.5%) 
GPJ Venture Capital LLC (86.25%) 
GANALOGICS OU 
GANALOGICS SRL 
 
Financial Review 
 
The results for the twelve-month period ending 31 January 2017 show a loss of GBP 
9,459,100 (2016: GBP7,819,748) on turnover of GBP3,269,908 (2016: GBP2,296,739). 
Total assets are GBP17,270,415; (2016: GBP9,906,982). The loss per share was (31)p 
per share (2016: (25)p). Losses due to exchange rate fluctuations were GBP 
3,808,254 (2016: gain GBP31,915). The expected tax charge is GBP719,863 (2016: GBP 
338,000). 
 
The Company had, at the end of the period under review, cash balances of GBP 
2,376,011 (2016: GBP1,281,315). Your directors believe that interest in the 
Company's business amongst high-net worth investors in Japan remains high and, 
providing there are no unforeseen circumstances, the capital needed to sustain 
the current investment programme will be generated by its subsidiary company 
GPJ Venture Capital LLC. 
 
The Market Trading Facility 
 
The Company shares are traded on the NEX Exchange Growth Market in London. 
 
The Gambling Commission 
 
Ganapati is continuing its dialogue with the Gambling Commission ("GC") in the 
UK.  There is, as yet, no resolution albeit the Company continues to respond 
the GC's request for additional information. 
 
 
Post Period End Events 
 
On 2 June 2017, the Company announced that its wholly-owned subsidiary, 
Ganapati (Malta) Limited, has been awarded a Class 4 licence by the MGA. This 
allows Ganapati (Malta) Limited to offer the Group's Japanese-themed online 
casino games to Malta-licenced operators. This includes games such as 
CrypBattle and She Ninja Suzu. 
 
The Company has established, through its subsidiary Ganapati (Malta) Limited, a 
new tech office, Ganalogics SRL in Bucharest, Romania. 
 
Board Changes 
 
On 2 February 2016 Mr Taku Sawada was appointed a director and Chief Liaison 
Officer and on 31 August 2016 Mr Mitsuya Fujimoto was appointed a director and 
Chief Operating Officer. 
 
Outlook 
 
Japan, as a nation, is going through significant changes as it exports its 
truly wonderful culture and heritage to the rest of the world. It will host the 
Rugby World Cup in 2019 and the Olympic Games in 2020. Your director's 
recognition of this, and the potential advantages it gives to the development 
of its international gaming products, has been extraordinary because of the 
potential it unleashes. 
 
However, Ganapati operates in a capital-intensive industry and will always be 
vulnerable to competitive forces. Your directors understand this risk and the 
additional pressure it creates. 
 
The Japanese culture of hard, diligent work, over and above normal 
requirements, is present throughout the Company. In the next twelve months, the 
directors believe that the full potential of the Company can be realised. 
 
Tony Drury 
Chairman 
30 June 2017 
 
 
The directors of Ganapati plc accept responsibility for this announcement. 
COMPANY CONTACT DETAILS: 
Ganapati plc 
Tony Drury 
Chairman 
Telephone: 07973 737284 
 
 
NEX EXCHANGE 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 
 
 
 
 
GANAPATI PLC 
 
GROUP PROFIT AND LOSS ACCOUNT 
 
FOR THE YEAR ENDED 31 JANUARY 2017 
 
                                                           2017                     2016 
 
                                    Notes                     GBP                        GBP 
 
Turnover                              3               3,269,908                2,296,739 
 
Administrative expenses                             (10,415,497)              (8,931,175) 
 
Operating loss                        5              (7,145,589)              (6,634,436) 
 
Interest receivable and similar       9                       -                    2,165 
income 
 
Interest payable and similar         10              (1,475,129)                (840,803) 
expenses 
 
Amounts written off investments                        (106,140)                       - 
 
Loss before taxation                                 (8,726,858)              (7,473,074) 
 
Taxation                             11                (719,863)                (338,000) 
 
Loss for the financial year                          (9,446,721)              (7,811,074) 
 
Loss for the financial year is 
attributable to: 
 
- Owners of the parent company                       (9,459,100)              (7,819,748) 
 
- Non-controlling interests                              12,379                    8,674 
 
                                                     (9,446,721)              (7,811,074) 
 
The profit and loss account has been prepared on the basis that all operations 
are continuing operations. 
 
 
 
 
 
 
GANAPATI PLC 
 
GROUP STATEMENT OF COMPREHENSIVE INCOME 
 
FOR THE YEAR ENDED 31 JANUARY 2017 
 
                                                         2017                      2016 
 
                                                            GBP                         GBP 
 
Loss for the year                                   (9,446,721)               (7,811,074) 
 
Other comprehensive income                                  -                         - 
 
Total comprehensive income for the year             (9,446,721)               (7,811,074) 
 
Total comprehensive income for the year is 
attributable to: 
 
- Owners of the parent company                      (9,459,100)               (7,819,748) 
 
- Non-controlling interests                            12,379                     8,674 
 
                                                    (9,446,721)               (7,811,074) 
 
 
 
 
GANAPATI PLC 
 
GROUP BALANCE SHEET 
 
AS AT 31 JANUARY 2017 
 
                                                                   2017                              2016 
 
                               Notes                 GBP                GBP               GBP                 GBP 
 
Fixed assets 
 
Intangible assets                12                          13,535,736                         8,007,105 
 
Tangible assets                  13                             118,257                            77,087 
 
Investments                      14                                   -                           106,140 
 
                                                             13,653,993                         8,190,332 
 
Current assets 
 
Debtors                          17          2,013,344                        1,020,326 
 
Cash at bank and in hand                     2,376,011                        1,281,315 
 
                                             4,389,355                        2,301,641 
 
Creditors: amounts falling       18            (772,933)                        (584,991) 
due within one year 
 
Net current assets                                            3,616,422                         1,716,650 
 
Total assets less current liabilities                        17,270,415                         9,906,982 
 
Creditors: amounts falling       19                          (34,944,328)                        (18,134,174) 
due after more than one year 
 
Net liabilities                                              (17,673,913)                         (8,227,192) 
 
Capital and reserves 
 
Called up share capital          21                             308,197                           308,197 
 
Share premium account                                           396,526                           396,526 
 

(MORE TO FOLLOW) Dow Jones Newswires

June 30, 2017 12:05 ET (16:05 GMT)

DJ Ganapati plc Audited Annual Results for the year -2-

Profit and loss reserves                                     (18,467,146)                         (9,008,046) 
 
Equity attributable to owners                                (17,762,423)                         (8,303,323) 
of the parent company 
 
Non-controlling interests                                        88,510                            76,131 
 
                                                             (17,673,913)                         (8,227,192) 
 
The financial statements were approved by the board of directors and authorised 
for issue on 30 June 2017 and are signed on its behalf by: 
 
Mr Y Ishihara 
 
Director 
 
 
 
 
 
 
GANAPATI PLC 
 
COMPANY BALANCE SHEET 
 
AS AT 31 JANUARY 2017 
 
                                                            2017                      2016 
 
                               Notes             GBP             GBP            GBP            GBP 
 
Fixed assets 
 
Intangible assets               12                    11,278,401                 8,000,000 
 
Investments                     14                       446,779                   514,183 
 
                                                      11,725,180                 8,514,183 
 
Current assets 
 
Debtors                         17       2,647,613                    148,163 
 
Cash at bank and in hand                   626,812                    315,629 
 
                                         3,274,425                    463,792 
 
Creditors: amounts falling      18        (197,175)                  (183,400) 
due within one year 
 
Net current assets                                     3,077,250                   280,392 
 
Total assets less current liabilities                 14,802,430                 8,794,575 
 
Creditors: amounts falling      19                   (32,824,524)               (17,176,789) 
due after more than one year 
 
Net liabilities                                      (18,022,094)                (8,382,214) 
 
Capital and reserves 
 
Called up share capital         21                       308,197                   308,197 
 
Share premium account                                    396,526                   396,526 
 
Profit and loss reserves                             (18,726,817)                (9,086,937) 
 
Total equity                                         (18,022,094)                (8,382,214) 
 
 
 
 
 
 
GANAPATI PLC 
 
COMPANY BALANCE SHEET (CONTINUED) 
 
AS AT 31 JANUARY 2017 
 
As permitted by s408 Companies Act 2006, the company has not presented its own 
profit and loss account and related notes. The company's loss for the year was 
GBP9,639,880 (2016 - GBP7,885,268 loss). 
 
For the financial year ended 31 January 2017 the company was entitled to 
exemption from audit under section 477 of the Companies Act 2006 relating to 
small companies. 
 
The directors acknowledge their responsibilities for complying with the 
requirements of the Act with respect to accounting records and the preparation 
of financial statements. 
 
These financial statements have been prepared in accordance with the provisions 
applicable to companies subject to the small companies' regime. 
 
The financial statements were approved by the board of directors and authorised 
for issue on 30 June 2017 and are signed on its behalf by: 
 
Mr Y Ishihara 
 
Director 
 
Company Registration No. 08807827 
 
 
 
 
 
GANAPATI PLC 
 
GROUP STATEMENT OF CHANGES IN EQUITY 
 
FOR THE YEAR ENDED 31 JANUARY 2017 
 
                                                                    Share      Share  Profit and         Total Non-controlling       Total 
                                                                  capital    premium        loss   controlling        interest 
                                                                             account    reserves      interest 
 
                                                         Notes          GBP          GBP           GBP             GBP               GBP           GBP 
 
Balance at 1 February 2015                                        305,317    396,526    (1,188,298)      (486,455)      67,457      (418,998) 
 
Year ended 31 January 2016: 
 
Loss and total comprehensive income for the year                        -          -    (7,819,748)    (7,819,748)       8,674    (7,811,074) 
 
Issue of share capital                                    21        2,880          -           -         2,880               -       2,880 
 
Balance at 31 January 2016                                        308,197    396,526    (9,008,046)    (8,303,323)      76,131    (8,227,192) 
 
Year ended 31 January 2017: 
 
Loss and total comprehensive income for the year                        -          -    (9,459,100)    (9,459,100)      12,379    (9,446,721) 
 
Balance at 31 January 2017                                        308,197    396,526   (18,467,146)   (17,762,423)      88,510   (17,673,913) 
 
 
 
 
GANAPATI PLC 
 
COMPANY STATEMENT OF CHANGES IN EQUITY 
 
FOR THE YEAR ENDED 31 JANUARY 2017 
 
                                                Share      Share  Profit and       Total 
                                              capital    premium        loss 
                                                         account    reserves 
 
                                    Notes           GBP          GBP           GBP           GBP 
 
Balance at 1 February 2015                    305,317    396,526   (1,201,669)     (499,826) 
 
Year ended 31 January 2016: 
 
Loss and total comprehensive income                 -          -   (7,885,268)   (7,885,268) 
for the year 
 
Issue of share capital                21        2,880          -           -       2,880 
 
Balance at 31 January 2016                    308,197    396,526   (9,086,937)   (8,382,214) 
 
Year ended 31 January 2017: 
 
Loss and total comprehensive income                 -          -   (9,639,880)   (9,639,880) 
for the year 
 
Balance at 31 January 2017                    308,197    396,526  (18,726,817)  (18,022,094) 
 
 
 
 
 
 
GANAPATI PLC 
 
GROUP STATEMENT OF CASH FLOWS 
 
FOR THE YEAR ENDED 31 JANUARY 2017 
 
                                                           2017                      2016 
 
                               Notes             GBP            GBP            GBP            GBP 
 
Cash flows from operating activities 
 
Cash generated from operations  22                    8,386,823                13,001,531 
 
Interest paid                                        (1,475,129)                  (840,803) 
 
Income taxes paid                                      (680,811)                  (252,245) 
 
Net cash inflow from operating                        6,230,883                11,908,483 
activities 
 
Investing activities 
 
Purchase of intangible assets           (5,528,631)               (5,245,144) 
 
Proceeds on disposal of intangibles              -                    (8,067) 
 
Purchase of tangible fixed assets          (76,128)                  (91,445) 
 
Proceeds on disposal of                      1,937                         - 
tangible fixed assets 
 
Proceeds on disposal of fixed                    -                     8,067 
asset investments 
 
Interest received                                -                     2,165 
 
Net cash used in investing                           (5,602,822)                (5,334,424) 
activities 
 
Financing activities 
 
Repayment of borrowings                    466,635                (6,677,945) 
 
Net cash generated from/(used                           466,635                 (6,677,945) 
in) financing activities 
 
Net increase/(decrease) in cash and                   1,094,696                   (103,886) 
cash equivalents 
 
Cash and cash equivalents at                          1,281,315                 1,385,202 
beginning of year 
 
Cash and cash equivalents at end of                   2,376,011                 1,281,315 
year 
 
 
 
 
 
 
 
 
END 
 

(END) Dow Jones Newswires

June 30, 2017 12:05 ET (16:05 GMT)