Back to all announcements

DJ Ganapati plc Audited Annual Results year ended 31 January 2018

 
TIDMGANP 
 
29 June 2018 
 
                                 Ganapati plc 
 
                         ("Ganapati" or "the Company") 
 
           Audited Annual Results for the year ended 31 January 2018 
 
Ganapati Plc are pleased to report its audited annual results for the twelve 
months ended 31 January 2018. 
 
CHAIRMAN'S STATEMENT 
 
I am pleased to announce the financial results for the year ended 31 January 
2018 for GANAPATI PLC ("Ganapati" or "the Company"). Although the period has 
been punctuated with frustrating commercial delays in the release of our games, 
the year has, nevertheless, been one of significant consolidation, staff 
recruitment and management competence. 
 
The basic strategic direction of the Company remains unchanged.  It includes 
the development of 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. Your Directors continue to believe in the 
profitable potential of these products. 
 
The entertainment sector globally is continuing to attract increasing attention 
from operators and Ganapati, with its Japanese imagery, animation and 
technology, is expecting to play an increasing part in the expected expansion. 
It will achieve this by creating a branded product range for the iGaming 
industry in Europe. 
 
This involves working through third parties for licensing purposes including 
the participation of the Malta Gaming Authority ("MGA"). Revenues are generated 
from bets placed through its games with the revenues being shares with the 
licensed company and aggregators through whom the bets are placed. 
 
The Ganapati Group is as follows: 
 
Ganapati (Malta) Limited 
 
GANAPATI NEO OU 
 
GANAPATI NEO SRL 
 
GANAPATI ENTERTAINMENT INC. 
 
GPJ Venture Capital LLC (86.25%) 
 
GANAPATI APPS Limited (20.5%) 
 
Financial Review 
 
The results for the twelve months period ending 31 January 2018 include a loss 
of GBP14,238,296 (2017: (GBP9,446,721)) on turnover of GBP2,947,724 (2017: GBP 
3,269,908). Total assets are GBP15,867,726 (2017: GBP17,270,415) and cash at bank 
totalled GBP1,311,230 (2017: GBP2,376,011). The loss per share was (45p) (2017: 
(31p)). 
 
The Directors continue to follow prudent accounting practices and, included in 
the loss of GBP14,238,296, is a write- down of GBP5,000,000 in the value of the 
software. Thus, the trading loss was GBP9,238,296 (2017: (GBP9,446,721)). 
 
Through its subsidiary company GPJ Venture Capital LLC, Ganapati continues to 
attract the interest of high-net worth investors in Japan through the issuing 
of three-year bonds carrying an attractive coupon. The Company has been pleased 
with the percentage of early stage investors who have been willing to renew 
their bonds at the expiration of the first three-years period. 
 
The Market Trading Facility 
 
The Company shares are traded on the NEX Exchange Growth Market in London. 
 
Principal risks and uncertainties 
 
The Board regularly reviews the risks facing the company and seeks to exploit, 
avoid or mitigate these risks as appropriate. 
 
Key performance indicators 
 
The Directors continue to monitor the overhead costs and revenue generation 
capabilities of the Group as well as the maintaining of resources of the Group 
as well as the maintenance of resources as part of the regular business 
reviews. 
 
When the Company generates significant revenues, key performance indicators 
will be used to assess comparable progress in its sectors of operation. 
 
Other information and explanations 
 
Board Changes 
 
Following the resignation of Mr Fujimoto on 31 July 2017, the Board recruited 
two new directors. On 12 September 2017 Mr Toshitaka Nakajima was appointed the 
Company's Finance Director as CFO (Chief Financial Officer)and has made a 
significant contribution to the strengthening of the Company's systems of 
operation. On 7 November 2017, Mr Hayato Terai, a bi-lingual lawyer, joined the 
Board of Directors as CLO (Chief Legal Officer) and has contributed to the 
competence of the Company in the sectors requiring his professional expertise. 
 
Corporate Governance 
 
To reflect the changes in the structure of the Board of Directors, the Company 
will be reviewing the membership of its Audit, Nominations and Remuneration 
Committees. 
 
Post Period End Results 
 
On 18 April 2018, the Company announced that its wholly-owned subsidiary 
Ganapati (Malta) Limited, had entered into an agreement with ISB Technology 
Sarl and their online and mobile casino games supplier brand, iSoftBet, to add 
content to its Game Aggregation Platform ("GAP"). This will be achieved by the 
integration of Ganapati's full suite of Japanese-themed games including hits 
such as 'She Ninja Suzu' and 'Pikotaro's Pinapple pen'. 
 
Outlook 
 
While it is accepted that the global marketplace in which Ganapati operates is 
expanding beyond the expectations of the Board however, so too is the 
competition. Your Directors' believe that our concentration on the competence 
of its organisation and the creative designing of its range of games will allow 
us to compete effectively in this market. Our games are now integrated to the 
GAP as disclosed above thus allowing the Company to begin revenue generation. 
 
Your Board of Directors is focussed on delivering value to its shareholders and 
bondholders. The past year has been a year of consolidation for the Company and 
we look to the next 12 months with confidence. 
 
Mr A Drury 
 
Chairman 
 
28 June 2018 
 
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 2018 
 
                                                           2018                       2017 
 
                                    Notes                     GBP                          GBP 
 
Turnover                              3               2,947,724                  3,269,908 
 
Administrative expenses                              (17,733,006)               (10,415,497) 
 
Other operating income                                  844,603                          - 
 
Operating loss                        5              (13,940,679)                (7,145,589) 
 
Interest receivable and similar       9                       3                          - 
income 
 
Interest payable and similar         10                 (297,620)                (1,475,129) 
expenses 
 
Amounts written off investments                               -                    (106,140) 
 
Loss before taxation                                 (14,238,296)                (8,726,858) 
 
Tax on loss                          11                       -                    (719,863) 
 
Loss for the financial year                          (14,238,296)                (9,446,721) 
 
Loss for the financial year is 
attributable to: 
 
- Owners of the parent company                       (14,258,881)                (9,459,100) 
 
- Non-controlling interests                              20,585                     12,379 
 
                                                     (14,238,296)                (9,446,721) 
 
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 2018 
 
                                                          2018                      2017 
 
                                                             GBP                         GBP 
 
Loss for the year                                  (14,238,296)                (9,446,721) 
 
Other comprehensive income                                   -                         - 
 
Total comprehensive income for the year            (14,238,296)                (9,446,721) 
 
Total comprehensive income for the year is 
attributable to: 
 
- Owners of the parent company                     (14,258,881)                (9,459,100) 
 
- Non-controlling interests                             20,585                    12,379 
 
                                                   (14,238,296)                (9,446,721) 
 
 
GANAPATI PLC 
 
GROUP BALANCE SHEET 
 
AS AT 31 JANUARY 2018 
 
                                                        2018                             2017 
 
                               Notes                  GBP                GBP               GBP                 GBP 
 
Fixed assets 
 
Intangible assets                12                           14,535,008                        13,535,736 
 
Tangible assets                  13                              247,848                           118,257 
 
                                                              14,782,856                        13,653,993 
 
Current assets 
 
Debtors                          17           2,567,875                        2,013,344 
 
Cash at bank and in hand                      1,311,230                        2,376,011 
 
                                              3,879,105                        4,389,355 
 
Creditors: amounts falling       18           (2,794,235)                        (772,933) 
due within one year 
 
Net current assets                                             1,084,870                         3,616,422 
 
Total assets less current liabilities                         15,867,726                        17,270,415 
 
Creditors: amounts falling       19                           (47,768,206)                       (34,944,328) 
due after more than one year 
 

(MORE TO FOLLOW) Dow Jones Newswires

June 29, 2018 12:22 ET (16:22 GMT)

DJ Ganapati plc Audited Annual Results year ended 31 -2-

Net liabilities                                               (31,900,480)                       (17,673,913) 
 
Capital and reserves 
 
Called up share capital          21                              319,926                           308,197 
 
Share premium account                                            396,526                           396,526 
 
Profit and loss reserves                                      (32,726,027)                       (18,467,146) 
 
Equity attributable to owners                                 (32,009,575)                       (17,762,423) 
of the parent company 
 
Non-controlling interests                                        109,095                            88,510 
 
                                                              (31,900,480)                       (17,673,913) 
 
The financial statements were approved by the board of directors and authorised 
for issue on 28 June 2018 and are signed on its behalf by: 
 
.............................. 
 
Mr A Drury 
 
Director 
 
 
GANAPATI PLC 
 
COMPANY BALANCE SHEET 
 
AS AT 31 JANUARY 2018 
 
                                                        2018                             2017 
 
                               Notes                  GBP                GBP               GBP                 GBP 
 
Fixed assets 
 
Intangible assets                12                            7,567,366                        11,278,401 
 
Tangible assets                  13                               94,030                                 - 
 
Investments                      14                              446,779                           446,779 
 
                                                               8,108,175                        11,725,180 
 
Current assets 
 
Debtors                          17           9,960,857                        2,647,613 
 
Cash at bank and in hand                         60,473                          626,812 
 
                                             10,021,330                        3,274,425 
 
Creditors: amounts falling       18             (793,987)                        (197,175) 
due within one year 
 
Net current assets                                             9,227,343                         3,077,250 
 
Total assets less current liabilities                         17,335,518                        14,802,430 
 
Creditors: amounts falling       19                           (49,692,249)                       (32,824,524) 
due after more than one year 
 
Net liabilities                                               (32,356,731)                       (18,022,094) 
 
Capital and reserves 
 
Called up share capital          21                              319,926                           308,197 
 
Share premium account                                            396,526                           396,526 
 
Profit and loss reserves                                      (33,073,183)                       (18,726,817) 
 
Total equity                                                  (32,356,731)                       (18,022,094) 
 
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 
GBP14,346,366 (2017 - GBP9,639,880 loss). 
 
The financial statements were approved by the board of directors and authorised 
for issue on 28 June 2018 and are signed on its behalf by: 
 
.............................. 
 
Mr A Drury 
 
Director 
 
Company Registration No. 08807827 
 
 
GANAPATI PLC 
 
GROUP STATEMENT OF CHANGES IN EQUITY 
 
FOR THE YEAR ENDED 31 JANUARY 2018 
 
                                                                     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 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) 
 
Year ended 31 January 2018: 
 
Loss and total comprehensive income for the year                         -          -   (14,258,881)   (14,258,881)      20,585   (14,238,296) 
 
Issue of share capital                                     21       11,729          -           -        11,729               -      11,729 
 
Balance at 31 January 2018                                         319,926    396,526   (32,726,027)   (32,009,575)     109,095   (31,900,480) 
 
 
GANAPATI PLC 
 
COMPANY STATEMENT OF CHANGES IN EQUITY 
 
FOR THE YEAR ENDED 31 JANUARY 2018 
 
                                                 Share      Share  Profit and       Total 
                                               capital    premium        loss 
                                                          account    reserves 
 
                                     Notes           GBP          GBP           GBP           GBP 
 
Balance at 1 February 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) 
 
Year ended 31 January 2018: 
 
Loss and total comprehensive income                  -          -  (14,346,366)  (14,346,366) 
for the year 
 
Issue of share capital                 21       11,729          -           -      11,729 
 
Balance at 31 January 2018                     319,926    396,526  (33,073,183)  (32,356,731) 
 
 
GANAPATI PLC 
 
GROUP STATEMENT OF CASH FLOWS 
 
FOR THE YEAR ENDED 31 JANUARY 2018 
 
                                                   2018                      2017 
 
                               Notes             GBP            GBP            GBP             GBP 
 
Cash flows from operating activities 
 
Cash generated from operations  22                    7,897,390                  8,386,823 
 
Interest paid                                          (297,620)                (1,475,129) 
 
Income taxes paid                                      (154,319)                  (680,811) 
 
Net cash inflow from operating                        7,445,451                  6,230,883 
activities 
 
Investing activities 
 
Purchase of intangible assets           (5,999,773)               (5,528,631) 
 
Purchase of tangible fixed assets         (225,050)                  (76,128) 
 
Proceeds on disposal of                      3,779                     1,937 
tangible fixed assets 
 
Proceeds from other                           (522)                        - 
investments and loans 
 
Interest received                                3                         - 
 
Net cash used in investing                           (6,221,563)                (5,602,822) 
activities 
 
Financing activities 
 
Proceeds from issue of shares               11,729                         - 
 
Repayment of borrowings                 (2,300,398)                  466,635 
 
Net cash (used in)/generated                         (2,288,669)                   466,635 
from financing activities 
 
Net (decrease)/increase in cash and                  (1,064,781)                 1,094,696 
cash equivalents 
 
Cash and cash equivalents at                          2,376,011                  1,281,315 
beginning of year 
 
Cash and cash equivalents at end of                   1,311,230                  2,376,011 
year 
 
 
GANAPATI PLC 
 
COMPANY STATEMENT OF CASH FLOWS 
 
FOR THE YEAR ENDED 31 JANUARY 2018 
 
                                                   2018                       2017 
 
                               Notes             GBP             GBP            GBP             GBP 
 
Cash flows from operating activities 
 
Cash absorbed by operations     23                   (11,243,025)                (9,196,575) 
 
Interest paid                                         (4,805,054)                (2,822,840) 
 
Net cash outflow from operating                      (16,048,079)               (12,019,415) 
activities 
 
Investing activities 
 
Purchase of intangible assets           (1,288,965)                (3,278,401) 
 
Purchase of tangible fixed assets         (108,751)                         - 
 
Proceeds on disposal of subsidiaries             -                    (38,736) 
 
Interest received                                2                          - 
 
Net cash used in investing                            (1,397,714)                (3,317,137) 
activities 
 
Financing activities 
 
Proceeds from issue of shares               11,729                          - 
 
Repayment of borrowings                 16,867,725                 15,647,735 
 
Net cash generated from                               16,879,454                 15,647,735 
financing activities 
 
Net (decrease)/increase in cash and                     (566,339)                   311,183 
cash equivalents 
 
Cash and cash equivalents at                             626,812                    315,629 
beginning of year 
 
Cash and cash equivalents at end of                       60,473                    626,812 
year 
 
 
 
 
END 
 

(END) Dow Jones Newswires

June 29, 2018 12:22 ET (16:22 GMT)