Back to all announcements

DJ Ganapati plc Audited Annual Results for the year ended 31January 2016

28 July 2016 
                                 Ganapati plc 
                         ("Ganapati" or "the Company") 
           Audited Annual Results for the year ended 31 January 2016 
Ganapati Plc are pleased to report its audited annual results for the twelve 
months ended 31 January 2016. 
Review of the Twelve Months Period ended 31 January 2016 
 I am pleased to announce the financial results for the year ended 31 January 
2016 for Ganapati Plc ("Ganapati" or "the Company"). This has been a 
significant and, at times, demanding period for the Company. Ganapati is a 
British registered Public Limited Company but operates from Tokyo, Japan. It 
invests in and develops software ("Apps") for the social media and consumer 
games markets. For much of the twelve months it has been developing three 
products: 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. 
During the period under review competition has intensified with the numbers of 
games being offered, steadily increasing. This has meant that income generation 
has become more challenging and the Company has failed to achieve its revenue 
However, the development of the apps has created a significant in-house 
expertise. A detailed research exercise was completed with the result that the 
directors have decided that online gambling (wagering with games-style front 
ends) might offer a more lucrative market. This has resulted in a strategy of 
offering to operators, a full online gambling software suite based on 
innovative and fresh products. It will design, build and supply games with a 
consumer front-end for all online gambling operations. An additional source of 
income will come from software support for the operators with whom it partners. 
Financial Review 
The results for the twelve month period ending 31 January 2016 show a loss of GBP 
7,819,747 (2015: (GBP1,188,296) on turnover of GBP2,296,741 (2015: GBP215,789). Total 
assets are GBP10,491,973 (2015: GBP9,519,172).  The loss per share was 29p (2015 
On 4 March 2016 we advised shareholders in a trading statement that the delay 
in the generation of revenues might result in your directors recommending the 
write-down of the value of the Company's intangible assets. After consulting 
carefully with our advisers and an industry specialist, the decision was taken 
to reduce the value by GBP4,559,700 which is reflected in the operating loss. 
The company had, at the end of the period under review, cash balances of GBP 
1,281,315 (2015: GBP1,385,201). 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 available. 
The Market Trading Facility 
On 19 August 2015 trading in the Company's shares was switched from GXG Markets 
(which had announced its closure) to the ISDX Growth Market, part of ICAP, a 
major financial institution in London. 
The Gambling Commission 
On 14 October 2015 the Company submitted an application to the UK Gambling 
Commission. There is a continuing engagement with officials at the Commission 
and your directors believe our application can be successful within the coming 
months. There are, however, a number of issues which require further discussion 
and a positive outcome is not certain. 
Post Period End Events 
The Company has now produced one advanced gambling game which has confirmed the 
Directors' belief that Ganapati has the capability to build suitable software 
for the online gambling sector. 
An office has been opened in London and a senior executive will be based 
full-time to spearhead the Company's drive into the UK and European markets. 
Board Changes 
On 6 August 2015 David Scott resigned as a director of Ganapati. On the same 
day Tony Drury was appointed a director of the Company and the non-executive 
Financial Reporting 
In my statement to shareholders on October 2015 I said that we will, in future, 
report on a quarterly basis. Your directors still intend implementing this 
action but will wait until the revenue streams become more meaningful. 
I visited Tokyo in September 2015 and have made a second trip earlier this 
year. The work ethic apparent in the Directors and staff is quite 
extraordinary. The whole ethos is centred round a determination to succeed for 
our shareholders. My Board colleagues are truly gifted and focused. 
We are attempting to succeed in the online gambling markets. The products are 
coming. I sincerely hope to report on a successful year in twelve months' time. 
Tony Drury 
28 July 2016 
The directors of Ganapati plc accept responsibility for this announcement. 
Ganapati plc 
Tony Drury 
Telephone: 07973 737284 
Alexander David Securities Limited 
David Scott -Corporate Finance 
James Dewhurst - Corporate Broking 
Telephone: +44 (0) 20 7448 9820 
49 Queen Victoria Street, London EC4N 4SA 
                                                         2016                      2015 
                                                                            as restated 
                              Notes                       GBP                       GBP 
Turnover                        3                   2,296,741                   215,789 
Administrative expenses                             (8,931,176)                (954,313) 
Operating loss                  5                   (6,634,435)                (738,524) 
Other interest receivable and                           2,165                       421 
similar income 
Interest payable and similar    6                     (840,803)                (450,193) 
Loss on ordinary activities                         (7,473,073)              (1,188,296) 
before taxation 
Tax on loss on ordinary         7                     (338,000)                       - 
Loss on ordinary activities                         (7,811,073)              (1,188,296) 
after taxation 
Minority interests                                      (8,674)                       - 
Loss for the financial year     8                   (7,819,747)              (1,188,296) 
                                                         2016                      2015 
Loss per share attributable                                 p                         p 
to owners of the parent company 
Basic and diluted (pence per share) 
From continuing operations                                 (29)                      (5) 
The profit and loss account has been prepared on the basis that all operations 
are continuing operations. 
There are no recognised gains and losses other than those passing through the 
profit and loss account. 
AS AT 31 JANUARY 2016 
                                                Group                     Company 
                                               2016         2015          2016         2015 
                               Notes            GBP          GBP           GBP          GBP 
Fixed assets 
Intangible assets               10        8,007,105    7,321,660     8,000,000    7,321,660 
Tangible assets                 11           77,087       18,663             -            - 
Investments                     12          106,140      114,207       514,183      522,250 
                                          8,190,332    7,454,530     8,514,183    7,843,910 
Current assets 
Debtors                         13        1,020,326      679,442       148,163      272,888 
Cash at bank and in hand                  1,281,315    1,385,201       315,629       85,708 
                                          2,301,641    2,064,643       463,792      358,596 
Creditors: amounts falling      14         (584,991)    (292,046)     (183,400)     (10,900) 
due within one year 
Net current assets                        1,716,650    1,772,597       280,392      347,696 
Total assets less current                 9,906,982    9,227,127     8,794,575    8,191,606 
Creditors: amounts falling      15      (18,134,173)  (9,646,123)  (17,176,789)  (8,691,431) 
due after more than one year 
                                         (8,227,191)    (418,996)   (8,382,214)    (499,825) 
Capital and reserves 
Called up share capital         16          308,197      305,317       308,197      305,317 
Share premium account           17          396,526      396,526       396,526      396,526 
Profit and loss account         17       (9,008,045)  (1,188,296)   (9,086,937)  (1,201,668) 
Shareholders' funds             19       (8,303,322)    (486,453)   (8,382,214)    (499,825) 
Minority interests              18           76,131       67,457             -            - 
                                         (8,227,191)    (418,996)   (8,382,214)    (499,825) 
Approved by the Board and authorised for issue on 28 July 2016 
Mr Y Ishihara 
Company Registration No. 08807827 
                                                         2016                      2015 
                                             GBP          GBP          GBP          GBP 
Net cash outflow from operating                    (2,167,341)                (1,605,625) 
Returns on investments and 
servicing of finance 
Interest received                          2,165                       421 
Interest paid                           (840,803)                        - 

(MORE TO FOLLOW) Dow Jones Newswires

July 28, 2016 10:29 ET (14:29 GMT)

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

Minority interests                             -                    67,457 
Net cash (outflow)/inflow for                        (838,638)                   67,878 
returns on investments and 
servicing of finance 
Taxation                                             (252,245)                   29,512 
Capital expenditure and financial 
Payments to acquire intangible        (5,245,145)               (7,321,660) 
Payments to acquire tangible             (91,445)                  (18,663) 
Payments to acquire investments                -                  (114,207) 
Net cash outflow for capital                       (5,336,590)                (7,454,530) 
Net cash outflow before management                 (8,594,814)                (8,962,765) 
of liquid resources and financing 
Issue of ordinary share capital            2,880                   701,843 
Other new long term loans              8,488,050                 9,646,123 
Net cash inflow from financing                      8,490,930                10,347,966 
(Decrease)/increase in cash in the                   (103,884)                1,385,201 

(END) Dow Jones Newswires

July 28, 2016 10:29 ET (14:29 GMT)