Back to all announcements

DJ Ananda Developments Plc Interim Results for the six months ended 31 July 2019

 
TIDMANA 
 
25 October 2019 
 
                            Ananda Developments Plc 
 
  ("Ananda", the "Company" and, together with its subsidiaries, the "Group") 
 
        Unaudited Interim Results for the six months ended 31 July 2019 
 
The Directors present the interim results of Ananda Developments Plc for the 
period from 1 February 2019 to 31 July 2019. 
 
UPDATE ON INVESTMENTS AND ACTIVITIES 
 
Ananda's vision is to become a significant player in the nascent medicinal and 
wellness cannabis sector.  In the period under review, the Company has 
continued to proceed with caution, given the continued uncertainty around the 
legislative and regulatory environment for medicinal cannabis and CBD in the 
UK. 
 
ICAN Israel Cannabis Limited ("iCAN") 
 
iCAN has continued to expand its footprint with its CannaTech conferences, 
Incubator and consulting businesses.  In March 2019, iCAN raised a further 
CAD$4,000,000 from a group of Canadian investors via a loan note that is 
convertible into shares at a valuation of USD$20,000,000. 
 
Ananda holds USD$200,000 of loan notes convertible at a maximum valuation of 
USD$12,000,000. 
 
Liberty Herbal Technologies Limited ("LHT") 
 
LHT launched hapac® in Italy in late 2018.  LHT was founded by ex-British 
American Tobacco executives who have developed hapac®, a novel system for the 
inhalation of medicinal cannabis.  Sales of hapac® commenced over the 2018/2019 
New Year period and, after customer feedback, the company made some changes to 
the product offering and the inhalation device.  In May and June 2019, sales of 
devices and sachets had responded well to the changes and sales also commenced 
online.  In July 2019, however, a review of the packaging of cannabis-based 
products initiated by the Italian government resulted in all CBD products being 
removed from shelves and warehouses whilst a legal hearing is held in the Parma 
Court.  LHT maintains that its products comply with all relevant laws in Italy 
and that sales will recommence when the hearings are complete. Since the end of 
the period LHT has progressed its plans to enter the Canadian and North 
American markets. 
 
Tiamat Agriculture Limited ("Tiamat") and DJT Group Limited ("DJT") 
 
Shareholders supported a series of resolutions at a General Meeting in June 
2019, to increase the reach of the Company through the acquisition of Tiamat, 
which enables Ananda to pursue a strategy to seek the grant of a Home Office 
Licence for the cultivation of >0.2% THC cannabis.  Tiamat subsequently created 
DJT Group Limited as a joint venture company with Anglia Salads Limited, a 
previous holder of a licence to grow >0.2% THC cannabis and an experienced 
medicinal cannabis grower.  DJT made good progress in preparing for the formal 
licence application during the period. There were no monetary transactions in 
the reporting period. Subsequent to the period end, on 14 October 2019, DJT 
Plants Limited, a wholly owned subsidiary of DJT, submitted a formal 
application for a licence to the Drugs and Firearms Licencing Unit of the Home 
Office. 
 
Capital raising and other corporate information 
 
During the period the Company raised GBP400,000 of new capital.  Most of the 
proceeds of this fundraising were advanced by the Company to Tiamat to fund the 
Home Office Licence application process, with the balance being used by Ananda 
for general working capital purposes. During the period, 70% of the Group's 
expenses were directly related to the application for the Home Office Licence. 
 
During the period, Tiamat Agriculture Limited and Tiamat Australia Pty were 
incorporated.  They became wholly owned subsidiaries of Ananda and no monetary 
values, apart from GBP1 of consideration, changed hands. 
 
Results 
 
The statement of consolidated comprehensive income shows the loss for six-month 
period to 31 July 2019 of GBP435,859.  The Group is in an early stage of 
development and the directors consider the loss for the period to be line with 
expectations.  The directors do not recommend the payment of a dividend. 
 
This report was approved by the Board and signed on its behalf. 
 
Melissa Sturgess, Director 
 
25 October 2019 
 
Consolidated Interim Statement of Comprehensive Income 
 
Period Ended 31 July 2019 
 
                                              6 months to   Period ended  Period ended 
                                             31 July 2019     31 January  31 July 2018 
                                                Unaudited           2019     Unaudited 
                                                                 Audited 
 
                                      Note              GBP              GBP             GBP 
 
Administrative expenses                         (439,881)      (368,299)     (199,520) 
 
Interest received                                   4,627          4,061             - 
 
Loss from operations                            (435,254)      (364,238)     (199,520) 
 
Taxation                                                -              -             - 
 
Foreign Exchange Translation Gain /     1           (605)              -           (5) 
(Loss) 
 
Total loss for the period                       (435,859)      (364,238)     (199,525) 
 
 
 
Earnings per share 
 
Basic and diluted earnings per share     2         (0.10p)       (0.11p)       (0.06p) 
(pence) 
 
There was no other comprehensive income in the period. 
 
Consolidated Interim Statement of Financial Position 
 
Period Ended 31 July 2019 
 
                                                   Group        Company       Company 
                                             6 months to   Period ended  Period ended 
                                            31 July 2019     31 January  31 July 2018 
                                               Unaudited           2019     Unaudited 
                                                                Audited 
 
                                                       GBP              GBP             GBP 
 
Fixed assets 
 
Investments                                      460,000        460,000             - 
 
                                                 460,000        460,000             - 
 
Current assets 
 
Loan Notes                                       159,185        159,185             - 
 
Debtors                                           31,234         18,191        43,644 
 
Cash at bank and in hand                         162,418        141,254       983,760 
 
                                                 352,837        318,630     1,027,404 
 
Creditors: amounts falling due within             87,594         17,528        51,929 
one year. 
 
 
Net current assets                               265,243        301,102       975,475 
 
Total assets less current liabilities            725,243        761,102       975,475 
 
Capital and reserves 
 
Share capital                                    836,111        658,333       658,333 
 
Share premium                                    689,229        467,007       516,667 
 
Retained earnings                              (800,097)      (364,238)     (199,525) 
 
Total equity and liabilities                     725,243        761,102       975,475 
 
 
The consolidated interim financial statements were approved and authorised for 
issue by the Board and were signed on its behalf by: 
 
Melissa Sturgess 
 
Director 
 
25 October 2019 
 
Consolidated Interim Statement of Changes in Equity 
 
Period Ended 31 July 2019 
 
GROUP                                      Share     Share   Retained      Total 
                                         Capital   Premium   Earnings 
 
                                               GBP         GBP          GBP          GBP 
 
As at 1 February 2019                    658,333   467,007  (364,238)    761,102 
 
Total comprehensive loss for the               -         -  (435,859)  (435,859) 
period 
 
Proceeds from share Issue                177,778   222,222          -    400,000 
 
Transactions with owners                 177,778   222,222          -    400,000 
 
Balance at 31 July 2019                  836,111   689,229  (800,097)    725,243 
 
 
 
GROUP                                      Share     Share   Retained      Total 
                                         Capital   Premium   Earnings 
 
                                               GBP         GBP          GBP          GBP 
 
On incorporation as at 19 January        100,000         -          -    100,000 
2018 
 
Total comprehensive loss for the               -         -  (364,238)  (364,238) 
period 
 
Proceeds from share Issue                558,333   467,007          -  1,025,340 
 
Transactions with owners                 558,333   467,007          -  1,025,340 
 
Balance at 31 January 2019               658,333   467,007  (364,238)    761,102 
 
 
 
GROUP                                      Share     Share   Retained      Total 
                                         Capital   Premium   Earnings 
 
                                               GBP         GBP          GBP          GBP 
 
On incorporation as at 19 January        100,000         -          -    100,000 
2018 
 
Total comprehensive loss for the               -         -  (199,525)  (199,525) 
period 
 
Proceeds from share Issue                558,333   516,667          -  1,075,000 
 
Transactions with owners                 558,333   516,667          -  1,075,000 
 
Balance at 31 July 2018                  658,333   516,667  (199,525)    975,475 
 
The following describes the nature and purpose of each reserve within owners' 
equity: 
 
Reserve                Description and purpose 
 
 
Share capital          This represents the nominal value of shares issued. 
 
 
Share premium          Amount subscribed for share capital in excess of 
                       nominal value. 
 
 
Retained earnings      Cumulative net gains and losses recognised in the 
                       statement of comprehensive income. 
 
Consolidated Interim Statement of Cash Flows 
 
Period Ended 31 July 2019 
 

(MORE TO FOLLOW) Dow Jones Newswires

October 25, 2019 07:00 ET (11:00 GMT)

DJ Ananda Developments Plc Interim Results for the -2-

                                               6 months to   Period ended      Period 
                                              31 July 2019     31 January    ended 31 
                                                 Unaudited           2019   July 2018 
                                                                  Audited   Unaudited 
 
                                                         GBP              GBP           GBP 
 
Cash flows from operating activities 
 
Cash outflow from operating activities           (378,836)      (364,900)    (91,240) 
 
Net cash outflow from operating                  (378,836)      (364,900)    (91,240) 
activities 
 
Cash flows from investing activities 
 
Purchase of convertible loan notes                       -      (159,186)           - 
 
Purchase of investments                                  -      (460,000)           - 
 
Net cash used in investing activities                    -      (619,186)           - 
 
Cash flows from financing activities 
 
Proceeds from issue of shares                      400,000      1,125,340   1,075,000 
 
Net increase in cash and cash                       21,164        141,254      91,240 
equivalents 
 
Cash and cash equivalents at the                   141,254              -           - 
beginning of the period 
 
Cash and cash equivalents at the end of            162,418        141,254     983,760 
the period 
 
 
Notes to the Consolidated Interim Financial Statements 
 
Period Ended 31 July 2019 
 
ACCOUNTING POLICIES 
 
General information 
 
Ananda Developments Plc's consolidated interim financial statements are 
presented in British Pound Sterling (GBP) which is the functional currency of 
the parent company.  These interim financial statements were approved for issue 
by the Board of Directors on 25 October 2019. 
 
The financial information set out in these interim financial statements 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 2019 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) of the Companies Act 2006. 
 
These consolidated interim results have not been audited nor have they been 
reviewed by the Group's auditors under ISRE 2410 of the Auditing Practices 
Board. 
 
Basis of preparation 
 
These interim financial statements are for the six-month period ended 31 July 
2019.  They have been prepared following the recognition and measurement 
principles of FRS 102.  They do not include all of the information required for 
full annual financial statements and should be read in conjunction with the 
financial statements for the period ended 31 January 2019. 
 
These interim financial statements have been prepared on a going concern basis 
which the Directors believe to be appropriate. 
 
These interim financial statements have been prepared in accordance with the 
accounting policies adopted in the financial statements for the period ended 31 
January 2019. 
 
Business Combinations 
 
These group financial statements consolidate those of the Company and its 
subsidiaries, Tiamat Agriculture Ltd and Tiamat Australia Pty.  The 
subsidiaries are fully consolidated from the date on which control is 
transferred to the Group.  All intra-group transactions, balances, income and 
expenses are eliminated on consolidated.  Uniform accounting policies are 
applied by the Group companies to ensure consistency. 
 
1.           Foreign currency transactions 
 
Transactions in foreign currencies are translated to GBP at the exchange rates 
at the dates of the transactions.  Monetary assets and liabilities denominated 
in foreign currencies at the reporting date are translated to GBP at the 
exchange rate on that date.  Foreign exchange differences arising on 
translation are recognised in the statement of comprehensive income. 
 
2.           Earnings per share 
 
The calculation of earnings per share is based on the loss attributable to 
ordinary shareholders divided by the average number of shares in issue during 
the period. 
 
                                     -END- 
 
Market Abuse Regulation (MAR) Disclosure 
 
The information contained within this announcement is deemed by the Company to 
constitute inside information as stipulated under the Market Abuse Regulation 
(EU) No. 596/2014. Upon the publication of this announcement via a Regulatory 
Information Service, this inside information is now considered to be in the 
public domain. 
 
 
 
END 
 

(END) Dow Jones Newswires

October 25, 2019 07:00 ET (11:00 GMT)