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DJ Ganapati plc Unaudited Interim Results 31 July 2017

 
TIDMGANP 
 
31 October 2017 
 
                                 Ganapati Plc 
 
                         ("Ganapati" or "the Company") 
 
        Unaudited Interim Results for the Six Months Ended 31 July 2017 
 
Ganapati today announces its unaudited interim results for the six months ended 
31 July 2017. 
 
Chairman's Statement 
 
Review of the Six Months Period ended 31 July 2017 
 
Ganapati is a Company that develops online casino software and mobile 
applications. In particular, the Company's strength has been creating online 
casino games combining the unique contents of Japan with the traditional slot 
games. During this period under review the Company has continued to develop 
pan-European partnerships. These will allow Ganapati to create online games 
with multiple popular content based on the special advantage it has in its use 
and understanding of Japanese history and culture. 
 
Financial Review 
 
The unaudited results for the six-month period ended 31 July 2017 show a loss 
of (GBP 4,541,031) (six months to 31 July 2016: (GBP8,750,140). The loss per share 
was (14p) (six months to 31 July 2016: (28p). 
 
Total income was GBP2,186,278 (six months to 31 July 2016: GBP1,337,493). Net 
liabilities at the end of the period under review were GBP21,598,900 (as at 31 
July 2016: GBP16,977,331). 
 
The Company continues to rely on the bonds bought by Japanese investors. These 
have a three-year maturity date with an option to renew for a further year. The 
Directors are pleased to confirm that as the early bonds come up for repayment, 
many Japanese investors have agreed to extend for a further one year. These can 
continue to be extended each year upon the approval of the investor. The 
Company is attracting new investors. 
 
On 27 July 2017 the Company was able to announce that the first equity for debt 
swap for 1,172,941 new ordinary shares involving Equity Midas Co Ltd and CD One 
LLC had been completed. 
 
Review of Operations 
 
The Company continues to operate and update its three Apps - BUZZ POP, Zapppi 
and My list. 
 
BUZZ POP has been downloaded over 140,000 times and has been updated many times 
to improve its potential profitability. During this period under review there 
was a new iOS update (the mobile operating system developed by Apple Inc.) 
which has, temporarily, hindered further development. Your directors expect 
this issue to be resolved before the end of the year.? 
 
The Online Casino business of the subsidiary companies in Estonia and Malta are 
progressing well and it is estimated that ten new games will be completed by 
the end of the fiscal year. Ganapati (Malta) has established a subsidiary 
company, Ganalogics SRL, as a game development base in Romania. 
 
The sales teams are working on negotiating contracts with online casino 
operators, and also attending online casino conventions pursuant to meeting new 
operators and signing agreements. 
 
The Company, including the office in London, has locations around the world and 
there is a weekly Skype meeting between the six divisional heads to ensure 
communication and continuity of the agreed strategy. 
 
The Gambling Commission 
 
Whilst the Company is maintaining a constructive dialogue with the Gambling 
Commission it has been decided to withdraw the current application and submit a 
fresh application in due course which will reflect the growing strength of the 
Company. In the interim, the Company will rely on the Class 4 licence obtained 
by our wholly owned subsidiary Ganapati (Malta) Limited. On 2 June 2017 we 
announced this award by the Malta Gambling Commission which allows Ganapati 
(Malta) Limited to offer the Group's Japanese-themed casino games to 
Malta-licensed operators. 
 
Post Period End Events 
 
The main operational events have been covered in the sections above. 
 
On 14 September 2017 it was announced that Mr Toshitaka Nakajima had been 
appointed Chief Financial Officer. On 1 August 2017 it was announced that Mr 
Taku Sawada had been appointed Chief Marketing Officer. On the same date it was 
announced that Mr Mitsuya Fujimoto had resigned as Chief Operating Officer. 
 
Corporate Governance 
 
The Company runs an Audit Committee and will be forming a Remuneration 
Committee before the end of the year. The roles and composition of the 
committee is 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 the generation of revenues is delayed further. 
 
Secondly, if anticipated revenue generation is below the estimates of the 
Directors. 
 
With the appointment of Mr Toshitaka Nakajima as Chief Financial Officer, the 
Company believes its financial reporting will become increasingly competent. 
 
Thirdly, if the Company cannot continue to maintain the support of its Japanese 
investors and/or cannot attract further equity investment. 
 
During the period under review the Chairman has met regularly with the 
directors of GPJ Limited and has obtained re-assurances that the investment 
needed during this loss-making phase is available. The equity for debt swap 
referred to above is significant. 
 
Outlook 
 
Ganapati is not affected by the Brexit negotiations: our markets are global. 
Whilst the financial results achieved in this six month period show reduced 
losses and significant cash reserves, delays in rolling out our games have 
absorbed executive time, and the new iOS update referred to above, has 
frustrated the increased generation of revenues from the Apps. However, we 
believe the improved financial performance will continue. The atmosphere and 
commitment amongst our staff is at the highest level yet. We are recruiting 
well. Your directors remain committed to repaying the faith of our investors. 
 
Tony Drury 
 
Chairman 
 
31 October 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 
 
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 
 
FOR THE SIX MONTHS ENDED 31 JULY 2017 
 
                                                Unaudited    Unaudited       Audited 
                                                 6 months     6 months    Year ended 
                                                    ended        ended    31 January 
                                                  31 July      31 July          2017 
                                                     2017         2016 
 
                                       Notes            GBP            GBP             GBP 
 
Turnover                                        2,186,278    1,337,493     3,269,908 
 
Administrative expenses                       (4,916,666)  (9,122,563)  (10,415,497) 
 
Operating loss                                (2,730,388)  (7,785,070)   (7,145,589) 
 
Other income                                            2        9,041             - 
 
Interest payable                                (760,199)    (686,396)   (1,475,129) 
 
Amounts written off investments                         -            -     (106,140) 
 
Loss on ordinary activities before            (3,490,585)  (8,413,225)   (8,726,858) 
taxation 
 
Taxation                                      (1,044,331)    (287,715)     (719,863) 
 
Loss on ordinary activities after             (4,534,916)  (8,750,140)   (9,446,721) 
taxation 
 
Non-controlling interests                         (6,115)            -      (12,379) 
 
Loss for the financial period                 (4,541,031)  (8,750,140)   (9,459,100) 
 
Basic loss per share, pence                4         (14)         (28)          (31) 
 
 
There are no items of other comprehensive income. 
 
UNAUDITED STATEMENT OF CHANGES IN EQUITY 
 
FOR THE SIX MONTHS ENDED 31 JULY 2017 
 
                                    Ordinary    Share     Retained        Minority        Total 
                                       share  premium      deficit Non-controlling       Equity 
                                     capital                              interest 
 
                                           GBP        GBP            GBP               GBP            GBP 
 
At 31 January 2017                   308,197  396,526 (18,467,146)          88,510 (17,673,913) 
 
Loss for the period                        -        -  (4,541,031)           6,115  (4,534,916) 
 
Conversion of debt to                 11,729  598,200            -               - 
equity                                                                               609,929 
 
At 31 July 2017                      319,926  994,726 (23,008,177)          94,625 (21,598,900) 
 
UNAUDITED STATEMENT OF FINANCIAL POSITION 
 
AS AT 31 JULY 2017 
 
                                                     Unaudited       Unaudited      Audited 
                                                      6 months        6 months   Year ended 
                                                         ended           ended   31 January 
                                                       31 July         31 July         2017 
                                                          2017            2016 
 
                                          Notes              GBP               GBP            GBP 
 
NON-CURRENT ASSETS 
 
Intangible assets                                   19,277,891       8,897,175   13,535,736 
 
Tangible assets                                        147,663          80,864      118,257 
 
Investments                                                  -         106,140            - 
 
                                                    19,425,554       9,084,179   13,653,993 
 
CURRENT ASSETS 
 

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October 31, 2017 08:09 ET (12:09 GMT)

DJ Ganapati plc Unaudited Interim Results 31 July -2-

Debtors                                              1,977,430       1,632,773    2,013,344 
 
Cash and cash equivalents                            1,906,053       1,497,125    2,376,011 
 
                                                     3,883,483       3,129,898    4,389,355 
 
CURRENT LIABILITIES 
 
Creditors                                            (861,205)       (831,998)    (772,933) 
 
NET CURRENT ASSETS                                   3,022,277       2,297,900    3,616,422 
 
NET ASSETS                                          22,447,831      11,382,079   17,270,415 
 
NON-CURRENT LIABILITIES 
 
Loans                                             (44,046,731)    (28,359,410) (34,944,328) 
 
                                                  (21,598,900)    (16,977,331) (17,673,913) 
 
EQUITY 
 
Ordinary share capital                      3          319,926         308,197      308,197 
 
Share premium                                          994,726         396,526      396,526 
 
Non-controlling interest                                94,625          76,131       88,510 
 
Retained deficit                                  (23,008,177)    (17,758,185) (18,467,146) 
 
TOTAL EQUITY                                      (21,598,900)    (16,977,331) (17,673,913) 
 
UNAUDITED STATEMENT OF CASH FLOW 
 
FOR THE SIX MONTHS ENDED 31 JULY 2017 
 
                                                      Unaudited      Unaudited      Audited 
                                                       6 months       6 months   Year ended 
                                                          ended          ended   31 January 
                                                        31 July        31 July         2017 
                                                           2017           2016 
 
                                                              GBP              GBP            GBP 
 
OPERATING ACTIVITIES 
 
Loss for the year                                   (4,541,031)    (8,750,140)  (9,459,100) 
 
Adjusted for: 
 
Depreciation charge                                      14,917              -       33,021 
 
Amounts written off investments                               -              -      106,140 
 
Finance income                                              (2)              -            - 
 
Finance cost                                            760,199        686,396    1,475,129 
 
Tax charge                                            1,044,331        287,715      719,863 
 
Non-controlling interest                                  6,115              -       12,379 
 
Unrealised foreign exchange loss on                       6,115      5,706,425       12,379 
borrowings 
 
                                                    (2,715,471)    (2,069,604)  (7,112,568) 
 
Working capital adjustments: 
 
Decrease/(increase) in trade and other                   35,914      (612,447)    (935,546) 
receivables 
 
Increase in trade and other payables                     88,272        176,943      187,942 
 
                                                    (2,591,285)    (2,505,108)  (7,860,172) 
 
Taxation paid                                         (996,850)      (217,651)    (680,811) 
 
Interest paid                                         (760,197)      (686,396)  (1,475,129) 
 
Net cash used in operating activities               (4,348,332)    (3,409,155) (10,016,112) 
 
INVESTING ACTIVITIES 
 
Payments to acquire intangible assets               (5,179,706)      (890,070)  (5,528,631) 
 
Payments to acquire tangible assets                    (44,323)              -     (76,128) 
 
Proceeds on disposal of tangible fixed                        -              -        1,937 
assets 
 
Net cash used in investing activities               (5,224,029)      (890,070)  (5,602,822) 
 
FINANCING ACTIVITIES 
 
New loans                                             9,102,403      4,515,035   16,713,630 
 
Net cash generated by financing                       9,102,403      4,515,035   16,713,630 
activities 
 
Increase / (decrease) in cash                         (469,958)        215,810    1,094,696 
 
Cash at the beginning of the year                     2,376,011      1,281,315    1,281,315 
 
Cash at the end of the year                           1,906,053      1,497,125    2,376,011 
 
                         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 2017, 
prepared under FRS 102, 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. 
 
 1. Accounting policies 
 
The interim financial information has been prepared in accordance with the 
recognition and measurement principles of FRS 102, 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 2017. 
 
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. 
 
 1. Share capital 
 
                                                         Share capital    Share 
                                                                        premium 
 
                                                                     GBP        GBP 
 
                                                               319,926  994,726 
Allotted, called up and fully paid 31,992,653 ordinary 
shares of 1p each 
 
                                                               319,926  994,726 
 
 1. 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     Six months     Year ended 
                                              ended          ended     31 January 
                                            31 July        31 July           2017 
                                               2017           2016      (audited) 
                                        (unaudited)    (unaudited) 
 
Weighted average number of shares in     31,992,653     30,819,712     30,819,712 
the period 
 
Total loss attributable to equity                (GBP   (GBP8,750,140)             (GBP 
shareholders of the Company              4,541,031)                    9,459,100) 
 
                                              (14p)          (28p)          (31p) 
Basic loss per share: 
 
 
 1. Unrealised foreign exchange loss on borrowings 
 
Unrealised foreign exchange loss on borrowings represents an exchange 
difference on loans denominated in Japanese Yen. 
 
 1. Dividends 
 
No interim dividend will be paid. 
 
 
 
END 
 

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October 31, 2017 08:09 ET (12:09 GMT)