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DJ Early Equity Plc Half-year Report

 
TIDMEEQP 
 
31 May 2019 
 
                               EARLY EQUITY PLC 
                       ("Early Equity" or the "Company") 
 
                                Interim Results 
 
Executive Director's Statement 
 
I am pleased to present the unaudited interim results for the Company for the 
 six month period ended 28th February 2019. 
 
Results and Review of Business 
 
The loss for the period was GBP68,045 (2018: GBP109,865) representing a loss 
per share of 0.01p (2018: 0.01p). The losses primarily reflect the costs 
associated with maintaining a public listing and administration costs. 
 
The value of our investment portfolio increased to GBP1,257,406 (2018: 
GBP1,013,769) due to further investments and our overall net asset value 
increased to GBP1,624,475 (2018: GBP1,541,744) 
 
On the 22nd February 2019 the Company announced that it acquired 60% of the 
issued share capital of MEI Home (M) Sdn. Bhd (Meihome) for a total 
consideration of One Million Five Hundred Thousand Ringgit  Malaysia 
(RM1,500,000), which is approximately GBP281,955. 
 
During the period, the Company raised a total of GBP187,500 by way of 
subscription. 
 
Post Balance Sheet Events 
 
There have been no material events, transactions or developments within the 
post balance sheet period. 
 
Change from investment Company to Operating Company 
 
With my appointment on the 1st March 2015 and subsequent appointment of Tee 
Lian Hing on the 1st August 2016 the Company gained access to the Asian Market 
through our network and skills in direct marketing and online sales. Early 
Equity's investment strategy was initially not geographically or sector 
focussed, however since 2015 has played to its strengths in Asia. 
 
In December 2015 Early Equity's current strategy began to evolve when it 
acquired an initial 32% stake in Yicom with a further 15% stake acquired in 
August 2017 (totaling the current stake of 47%). Yicom is the sole importer and 
patent holder of a series of healthcare products from various countries and in 
particular China.  Following this acquisition, the Management have focused more 
specifically on developing the sales of products in Asia, with a focus on 
Malaysia, Thailand and China. Products include food and beverage, skincare 
products and nutritional health supplements. This was followed up by an 
acquisition of a 4% minority holding in Early Infinity in August 2017, which is 
the core distribution company which Yicom uses to sell its products. 
 
As the health supplements and distribution model has developed and shown signs 
of strong growth, the Company has expanded its involvement and the Early Equity 
management team has become more involved in the activities of Yicom and EI and 
has made further acquisitions in the sector. 
 
As a result of the acquisition of MEI Home the Board have reviewed the 
activities of the Company.  Whist to date the Company has acted as an 
investment company with a generalist acquisition policy in recent years the 
acquisitions have tended to be in one generic area.  Most of the businesses 
have a focus on products for the Asian market with an emphasis on direct and 
indirect sales of health supplements and medical devices. 
 
In addition to the investments the Company has made the Board is now working on 
a more active basis with the Directors of the existing investments of Yicom, EI 
Holdings and MEI Home.  As a result the Board has agreed to enter into joint 
venture agreements to reflect the management time spent on these activities. 
In addition, as the Executive Directors are now engaged with the operations the 
Company has notified NEX Exchange that it now believes it should be treated as 
an operating company, not an investment company for the purpose of the NEX 
Exchange Rules. 
 
The Company proposes to look for buyers of its activities which do not fall 
into the sphere of health supplements, direct and indirect marketing and 
medical devices.  The Board will update investors as to the progress of these 
activities in due course. 
 
Outlook 
 
The Company is pleased to report that year on year, Yicom Global Sdn. Bhd. 
(Yicom) has continued to increase its network and sales volumes. The growth is 
represented by increased sales in Malaysia and also by EI Holdings expanding 
their global network of sales agents. EI Holdings are now operational in 
Malaysia, Singapore, Taiwan, Indonesia, Thailand, Hongkong and Japan. 
 
The Board hope to benefit from increasing revenue streams generated by ongoing 
dividend income from Yicom and MEIhome. 
 
The Board are continuing the process of applying for a Standard Listing of the 
Company's Ordinary Shares on the Main Market of the London Stock Exchange. 
 
On behalf of the Board, I would like to take this opportunity to thank 
shareholders and professional advisers for their continued support of the 
Company. 
 
Chua Siew Lian 
 
Executive Director 
 
CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME 
 
FOR SIX MONTHS TO 28 FEBRUARY 2019 
 
                                         6 months to      6 months to 
                                       28 February 2019   29 February 
                                                             2018 
 
CONTINUING OPERATIONS                        GBP              GBP 
 
TURNOVER/DIVIDEND INCOME                    38,561          16,014 
 
OTHER INCOME                                  -                - 
 
ADMINISTRATIVE EXPENSES                   (110,836)        (88,348) 
 
OTHER OPERATING (EXPENSES) GAIN              5,639         (34,342) 
 
FINANCE COSTS                              (1,409)          (3,189) 
 
(LOSS) BEFORE TAX                          (68,045)        (109,865) 
 
INCOME TAX                                                     - 
 
(LOSS) FOR THE YEAR / PERIOD                               (109,865) 
                                           (68,045) 
 
OTHER COMPREHENSIVE INCOME / (LOSS) 
 
Loss on fair value changes of                 -                - 
available-for-sale financial assets 
 
Reclassification of fair value gain on        -                - 
disposal 
of available-for-sale financial assets 
 
OTHER COMPREHENSIVE INCOME / (LOSS)           -                - 
FOR THE YEAR / PERIOD 
 
TOTAL COMPREHENSIVE LOSS FOR THE YEAR       (68,045)       (109,865) 
/ PERIOD 
 
BASIC AND DILUTED LOSS PER SHARE              (0.01)p       (0.01)p 
 
                                         6 months to      6 months to 
CONSOLIDATED STATEMENT OF FINANCIAL    28 February 2019   29 February 
POSITION AS AT 28 FEBRUARY 2019                              2018 
 
                                             GBP              GBP 
 
INVESTMENTS 
 
Available-for-sale financial assets       1,257,406        1,013,769 
 
CURRENT ASSETS 
 
Trade and other receivables                 47,460            6,127 
 
Cash and cash equivalents                  276,970          428,837 
 
Other Receivables                           42,796          98,361 
 
                                           367,226          533,325 
 
CURRENT LIABILITIES 
 
Trade and other payables                   (24,717)           100 
 
Accrued Expenses                            21,678           5,250 
 
Deferred Tax Liabilities                     3,756             - 
 
Provision for Taxation                        (560)            - 
 
                                            (157)           (5,350) 
 
NET CURRENT ASSETS / (LIABILITIES)          367,069         527,975 
 
NET ASSETS                                1,624,475        1,541,744 
 
REPRESENTING:- 
 
Share capital                             1,159,623         972,123 
 
Share premium                             1,496,090        1,496,090 
 
                                          2,655,713        2,468,213 
 
Non-controlling interest                     59,284            - 
 
Fair value reserve                          142,983         133,364 
 
Accumulated losses                       (1,233,505)      (1,059,833) 
 
SHAREHOLDERS FUNDS                        1,624,475        1,541,744 
 
The interim financial information for the six months ended 28 February 2019 is 
  neither audited nor reviewed, but has been prepared in accordance with the 
accounting policies set out in the Company's annual report and accounts for the 
                          year ended 31 August 2018. 
 
   The Directors of the Company accept responsibility for the announcement. 
 
                                    --ENDS- 
 
Enquiries: 
 
Early Equity Plc 
Greg Collier 
Tel: +44 (0)78 3018 2501 
 
NEX EXCHANGE CORPORATE ADVISER: 
 
Alexander David Securities Limited 
David Scott -Corporate Finance 
James Dewhurst - Institutional Sales 
Telephone: +44 (0) 20 7448 9820 
http://www.ad-securities.com 
49 Queen Victoria Street, London EC4N 4SA 
 
 
 
END 
 

(END) Dow Jones Newswires

May 31, 2019 05:32 ET (09:32 GMT)