Back to all announcements

DJ KR1 plc Half-year Report

 
TIDMKR1 
 
27 September 2018 
 
                                    KR1 Plc 
 
                           ("KR1" or the "Company") 
 
              Interim Report for the Half Year Ended 30 June 2018 
 
The Company is pleased to present its interim report for the half year ended 30 
June 2018. 
 
Chief Executive Officer's statement 
 
Since its invention in 2008, Bitcoin has lived through numerous market cycles. 
The longest downtrend lasted 415 days between 2013 and 2015, only then 
beginning its gradual rise to a crescendo in late 2017. During those two long 
nervous years, Bitcoin lost 83% of its previous value and the Bitcoin 
obituaries came thick and fast from the mainstream media. Yet the network 
statistics told a different story, Bitcoin the network was gaining wider 
adoption on all metrics and eventually the market caught up. 
 
We're currently in another downtrend, experiencing the same nervousness in the 
market as we did in the previous cycle, but instead of USD197 per Bitcoin the 
world watches on and winces at the current price of USD6,400.  The market will 
undoubtedly consolidate at a 'higher low' in the near future as we will enter a 
new part of the adoption cycle. The difference this time is that we are seeing 
major moves into the space by some of the world's largest financial 
institutions and because crypto assets are influenced by events and narratives, 
we see no reason why the market won't catch up again as these institutions will 
allow greater access and spark a new wave of adoption. 
 
The current trend has, as expected affected our portfolio. We've seen a loss 
due to the decrease in value of our cash equivalents Bitcoin and Ether. When 
combined with strong correlation between the price of these leading assets and 
the wider token market, the effects have been felt across most of our more 
niche token assets too. However, as we chose highly successful projects in the 
last part of 2016 and early 2017 and drew down on these at the right time, we 
therefore had significant funds to allocate during the shift in market cycle 
and we have been able to continue backing projects of the highest quality. 
Blockchain innovation continues at a rapid pace and we're excited about how our 
portfolio is taking shape and we're confident that when a change in sentiment 
comes, we will be in a very strong position to make the most of it. 
 
Just as blockchain technology continues to thrive, our fundamentals as a 
company are also gaining momentum. The success of our investment process is 
proven, our network of trusted friends, developers and institutions is growing 
by the day and our ambitions and enthusiasm for this disruptive technology are 
stronger than ever. These attributes will allow us to make most of the 
opportunities presented to us in the coming year and we're excited for what 
2019 will bring. 
 
George McDonaugh CEO 
Date: 26 September 2018 
 
 
 
Profit & loss account 
 
                                       6 months to 6 months to 30   12 months to 
                                           30 June           June    31 December 
                                              2018           2017           2017 
 
                                         Unaudited      Unaudited        Audited 
                                               GBP            GBP            GBP 
 
Income 
 
Unrealised (loss)/profit               (8,099,865)      3,075,436     10,825,365 
 
Realised profit                          1,118,846        998,373      5,447,789 
 
Gross (loss)/profit                    (6,981,019)      4,073,809     16,273,154 
 
Administrative expenses                  (380,190)       (89,065)    (1,794,264) 
 
(Loss)/profit on ordinary activities   (7,361,209)      3,984,744     14,478,890 
before taxation 
 
Taxation                                 1,472,242    (1,434,193)    (2,868,386) 
 
(Loss)/profit on ordinary activities   (5,888,967)      2,550,551     11,610,504 
after taxation 
 
(Loss)/profit per share               (5.33) pence     4.28 pence     3.16 pence 
 
 
 
Balance sheet 
 
                                                                                    At 
                                            At 30 June       At 30 June    31 December 
                                                  2018             2017           2017 
 
                                             Unaudited        Unaudited        Audited 
                                                   GBP              GBP            GBP 
 
Current assets 
Debtors                                          2,040            8,419          2,804 
Investments                                  7,514,839          305,793     14,214,185 
 
Digital currencies                           1,176,006        4,138,488      2,505,245 
 
Cash held on trading platforms               1,057,350            1,990        248,927 
 
Cash at bank                                    58,424           12,864        788,792 
 
                                             9,808,659        4,467,554     17,759,953 
 
Creditors 
Amounts falling due within one year        (2,135,282)      (1,475,929)    (4,208,376) 
 
Net current assets                           7,673,377        2,991,625     13,551,577 
 
Creditors 
Amounts falling due over one year                    -                -              - 
 
Total assets less current liabilities        7,673,377        2,991,625     13,551,577 
 
 
Capital and reserves 
Called up share capital                        685,993          590,993        685,993 
Share premium account                        2,163,649          758,649      2,163,649 
Profit and loss account                      4,823,735        1,641,983     10,701,935 
 
Equity shareholders' funds                   7,673,377        2,991,625     13,551,577 
 
 
 
Net Asset Value per share                   6.95 pence       5.02 pence    12.36 pence 
 
Interim report notes 
 
Interim report 
 
The information relates to the 6-month period from 1 January to 30 June 2018. 
 
The interim report was approved by the Directors on 26 September 2018. 
 
The interim report has been reviewed by the company's auditors but has not been 
audited. 
 
Basis of accounting 
 
While the financial information included in this interim financial report has 
been prepared in accordance with the recognition and measurement criteria of 
Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable 
in the United Kingdom and Republic of Ireland' ('FRS 102'), this interim 
financial information does not itself contain sufficient information to comply 
fully with FRS 102. 
 
These interim financial statements are the financial statements of the Company. 
 
The financial statements are prepared under the historical cost convention 
except for the modification to a fair value basis for certain financial 
instruments as specified in the accounting policies below and are in accordance 
with applicable accounting standards. 
 
Investments 
 
Investments are held as current asset trade investments and are valued at the 
lower of cost and net realisable value.  Foreign denomination loans are 
translated into sterling at the rate of exchange ruling at the balance sheet 
date.  For those investments listed on a recognised market, net realisable 
value is taken as mid-market price. Where the directors consider the market 
price of a company is likely to irreversibly fall, additional write downs in 
valuation to below mid-market price are made. 
 
The net realisable value of certain investments is not readily determinable by 
reference to a quoted market price. The directors have therefore made their own 
assessment of the net realisable value and adjusted the carrying value of the 
investment where it is considered less than cost. This estimate requires 
estimation techniques, which are reliant upon their experience and expertise. 
 
The Company accounts for digital currencies, which it considers to be an 
operating asset, at their initial cost and subsequently revalues the carrying 
amounts of the digital currencies held at each reporting date based on their 
current fair value using rates obtained from various exchanges, including Oanda 
and Coinmarket. The rates obtained from these sources represent a generally 
well recognised quote price in an active market, which market and database is 
accessible to the Company on an ongoing basis. Digital currencies which have 
not undergone their ICO (initial coin offering) at the reporting date are 
valued at cost and the directors have verified that this is in line with the 
opening prices at ICO post period end. The changes in fair value are recognised 
in the Company's Profit and Loss account. 
 
The Company will report again for the full year to 31 December 2018. 
 
The Directors of KR1 Plc accept responsibility for this announcement. 
 
                                   --ENDS-- 
 
Contact Details: 
 
Stephen Corran 
KR1 Plc 
Tel : 01624 676716 
Email : scorran@bridgewaters.co.im 
 
NEX Corporate Adviser 
Peterhouse Capital Limited 
Fungai Ndoro and Mark Anwyl 
+44 (0)20 7469 0930 
 
 
 
END 
 

(END) Dow Jones Newswires

September 27, 2018 02:00 ET (06:00 GMT)