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DJ Ganapati plc Unaudited Interim Results Six Months Ended 31 July 2018

 
TIDMGANP 
 
26 October 2018 
 
                                 Ganapati Plc 
 
                         ("Ganapati" or "the Company") 
 
        Unaudited Interim Results for the Six Months Ended 31 July 2018 
 
Ganapati today announces its unaudited interim results for the six months ended 
31 July 2018. 
 
Chairman's Statement 
 
Review of the Six Months Period ended 31 July 2018 
 
Ganapati continues to develop its creation of online games with multiple 
popular content. Its advantage is its use and understanding of Japanese history 
and culture. It is continuing its global expansion with the opening of an 
office in Taiwan on 3 August 2018. Ganapati is planning an Initial Coin Offer 
("ICO") through its wholly owned subsidiary GanaEight Coin Limited and expects 
to launch in Q2 next year. 
 
Financial Review 
 
The unaudited results for the six-month period ended 31 July 2018 show a loss 
of GBP3,555,475 (six months to 31 July 2917: (GBP4,541,031). The loss per share was 
(11p) (six months to 31 July 2017 (GBP14p)). 
 
Total income was GBP2,192,619 (six months to 31 July 2017: GBP2,186,278. Net 
liabilities at the end of the period under review were GBP35,455,955 (as at 31 
July 2017: GBP21,598,900). 
 
The Company continues to rely on the bonds bought by Japanese investors. These 
have a two-year maturity date with an option to renew for a future year. Your 
directors are pleased to report a healthy demand both for bond extensions and 
the placing of bonds with new investors. Ganapati had cash reserves at the end 
of the period under review of GBP2,006,593 (as at 31 July 2017: GBP1,906,053. 
 
As the revenues from the sale of games increase and the potential proceeds from 
the ICO in Spring 2019 are received, your directors believe that the 
requirement for the placing of new bonds will diminish and eventually 
disappear. 
 
The Company's shares are traded on the NEX Exchange Growth Market based in 
London. 
 
Review of Operations 
 
The basic strategic direction of the Company remains unchanged. This includes 
the further 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. 
 
The subsidiary companies in Estonia and Malta are continuing their work in 
designing and marketing games. The Company is represented at iGaming shows 
across the world. The location of the Company's offices in Los Angeles, Curacao 
and Taiwan gives Ganapati a global presence. The Company's Head Offices are in 
London and Tokyo. 
 
Ganapati has announced that it is entering into the blockchain Industry with 
the formation of a wholly owned subsidiary company, GanaEight Coin Limited, 
which is based in Malta. Its mission is to create an innovative model for the 
next generation of online casinos. 
 
Post Period End Events 
 
The main operational events have been covered in the sections above. 
 
Corporate Governance 
 
The review of the membership of the Audit, Nominations and Remuneration 
Committees has been deferred due to the rapid expansion of the Company. It will 
be completed before the end of the current trading year. 
 
Risk Assessment 
 
Your Directors continue to monitor the three main areas of risk to a possible 
loss of value of the shares, as follows, in the light of these encouraging 
results: 
 
Firstly, the generation of revenues from the sale of games does not meet the 
Company's forecasts. 
 
Secondly, the control of overheads is not maintained. 
 
Thirdly, if there is a sudden change in attitude amongst Japanese bond 
investors. 
 
At the present time, your Directors believe that there is no evidence that any 
of the above situations apply to the Company although they continue to maintain 
a strict monitoring of all three situations. 
 
Outlook 
 
Given the political uncertainty in the UK caused by Brexit, Ganapati will not 
be affected by the outcome of Brexit, and staff employment is expected to 
remain the same following potential new immigration laws imposed in the United 
Kingdom. 
 
The Board of Directors remain positive for the remainder of the financial year 
to January 2019 and beyond. Although taking place after the end of the period 
under review, Ganapati is now generating revenues from the sale of games. 
 
The Directors vision is to build an initial revenue-generating global business 
which will create value for all stakeholders, and believes that the global 
nature of the business, continues to provide opportunities for Ganapati's 
future growth. 
 
If your Directors are able to maintain and develop a business which generates 
high revenues whilst holding the overhead structure, the future looks promising 
with the added benefit of GanaEight Coin Limited ICO expected in Q2 next year. 
That is being organised but must, at this stage, remain speculative. 
 
Tony Drury 
Chairman 
26 October 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 
 
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 
 
FOR THE SIX MONTHS ENDED 31 JULY 2018 
 
                                                 Unaudited     Unaudited        Audited 
                                                  6 months      6 months     Year ended 
                                                     ended         ended     31 January 
                                                   31 July       31 July           2018 
                                                      2018          2017 
 
                                       Notes             GBP             GBP              GBP 
 
Turnover                                         2,192,619     2,186,278      2,947,724 
 
Administrative expenses                        (5,321,902)   (4,916,666)   (17,733,006) 
 
Operating loss                                 (3,129,283)   (2,730,388)   (14,785,282) 
 
Other income                                       520,438             -        844,603 
 
Interest receivable                                      3             2              3 
 
Interest payable                                  (51,221)     (760,199)      (297,620) 
 
Loss on ordinary activities before             (2,660,063)   (3,490,585)   (14,238,296) 
taxation 
 
Taxation                                         (800,442)   (1,044,331)              - 
 
Loss on ordinary activities after              (3,460,505)   (4,534,916)   (14,238,296) 
taxation 
 
Non-controlling interests                         (94,970)       (6,115)       (20,585) 
 
Loss for the financial period                  (3,555,475)   (4,541,031)   (14,258,881) 
 
Basic loss per share, pence                4          (11)          (14)           (45) 
 
 
There are no items of other comprehensive income. 
 
UNAUDITED STATEMENT OF CHANGES IN EQUITY 
 
FOR THE SIX MONTHS ENDED 31 JULY 2018 
 
                                    Ordinary    Share     Retained        Minority        Total 
                                       share  premium      deficit Non-controlling       Equity 
                                     capital                              interest 
 
                                           GBP        GBP            GBP               GBP            GBP 
 
At 31 January 2018                   319,926  396,526 (32,726,027)         109,095 (31,900,480) 
 
Loss for the period                        -        -  (3,460,505)        (94,970)  (3,555,475) 
 
At 31 July 2018                      319,926  396,526 (36,186,532)          14,125 (35,455,955) 
 
UNAUDITED STATEMENT OF FINANCIAL POSITION 
 
AS AT 31 JULY 2018 
 
                                         Unaudited        Unaudited           Audited 
                                          6 months         6 months        Year ended 
                                             ended            ended        31 January 
                                           31 July          31 July              2018 
                                              2018             2017 
 
                              Notes              GBP                GBP                 GBP 
 
NON-CURRENT ASSETS 
 
Intangible assets                       19,154,071       19,277,891        14,535,008 
 
Tangible assets                            243,590          147,663           247,848 
 
Investments                                      -                -                 - 
 
                                        19,397,661       19,425,554        14,782,856 
 
CURRENT ASSETS 
 
Debtors                                  2,947,678        1,977,430         2,567,875 
 
Cash and cash equivalents                2,006,593        1,906,053         1,311,230 
 
                                         4,954,271        3,883,483         3,879,105 
 
CURRENT LIABILITIES 
 
Creditors                              (3,856,673)        (861,205)       (2,794,235) 
 
NET CURRENT ASSETS                       1,097,598        3,022,277         1,084,870 
 
Total assets less current               20,495,259       22,447,831        15,867,726 
liabilities 
 
NON-CURRENT LIABILITIES 
 
Loans                                 (55,951,214)     (44,046,731)      (47,768,206) 
 
NET ASSETS                            (35,455,955)     (21,598,900)      (31,900,480) 
 
EQUITY 
 
Ordinary share capital          3          319,926          319,926           319,926 
 
Share premium                              396,526          994,726           396,526 
 
Non-controlling interest                    14,125           94,625           109,095 
 
Retained deficit                      (36,186,532)     (23,008,177)      (32,726,027) 
 
TOTAL EQUITY                          (35,455,955)     (21,598,900)      (31,900,480) 
 

(MORE TO FOLLOW) Dow Jones Newswires

October 26, 2018 11:46 ET (15:46 GMT)

DJ Ganapati plc Unaudited Interim Results Six Months -2-

UNAUDITED STATEMENT OF CASH FLOW 
 
FOR THE SIX MONTHS ENDED 31 JULY 2018 
 
                                                  Unaudited      Unaudited      Audited 
                                                   6 months       6 months   Year ended 
                                                      ended          ended   31 January 
                                                    31 July        31 July         2018 
                                                       2018           2017 
 
                                                          GBP              GBP            GBP 
 
OPERATING ACTIVITIES 
 
Loss for the period                             (3,460,505)    (4,541,031) (14,238,296) 
 
Adjusted for: 
 
Depreciation charge                                  12,456         14,917       92,181 
 
Amortisation & impairment of                              -              -    5,000,000 
intangibles 
 
Finance income                                          (3)            (2)          (3) 
 
Finance cost                                         51,221        760,199      297,620 
 
Tax charge                                          800,442      1,044,331            - 
 
Non-controlling interest                           (94,970)          6,115            - 
 
                                                (2,691,359)    (2,715,471)  (8,848,498) 
 
Working capital adjustments: 
 
Decrease/(increase) in trade and other            (379,803)         35,914    (599,791) 
receivables 
 
Increase in trade and other payables              1,062,438         88,272   17,345,679 
 
                                                (2,008,724)    (2,591,285)    7,897,390 
 
Taxation paid                                     (812,898)      (996,850)    (154,319) 
 
Net Interest paid                                  (51,218)      (760,197)    (297,620) 
 
Net cash used in operating activities           (2,872,840)    (4,348,332)    7,445,451 
 
INVESTING ACTIVITIES 
 
Payments to acquire intangible assets           (4,614,805)    (5,179,706)  (5,999,773) 
 
Payments to acquire tangible assets                       -       (44,323)    (225,050) 
 
Proceeds on disposal of fixed assets &                    -              -        3,260 
other 
 
Net cash used in investing activities           (4,614,805)    (5,224,029)  (6,221,563) 
 
FINANCING ACTIVITIES 
 
Issue of shares                                           -              -       11,729 
 
New loans/(repayment of loans)                    8,183,008      9,102,403  (2,300,398) 
 
Net cash generated by financing                   8,183,008      9,102,403  (2,288,669) 
activities 
 
Increase / (decrease) in cash                       695,363      (469,958)  (1,064,781) 
 
Cash at the beginning of the year                 1,311,230      2,376,011    2,376,011 
 
Cash at the end of the year                       2,006,593      1,906,053    1,311,230 
 
                         NOTES TO THE INTERIM RESULTS 
 
1. Interim accounts 
 
The financial information set out in this interim report 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 2018, 
prepared under FRS 102, 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) or (3) of the Companies Act 2006. 
 
Copies of the interim report are available to view and download from the 
Company's website: www.ganapatiplc.com. 
 
2. Accounting policies 
 
The interim financial information has been prepared in accordance with the 
recognition and measurement principles of FRS 102, including Financial 
Reporting Standard 104, "Interim Financial Reporting", and on the same basis 
and using the same accounting policies as used in the financial statements for 
the year ended 31 January 2018. 
 
The interim financial statements have not been audited or reviewed in 
accordance with the International Standard on Review Engagement 2410 issued by 
the Auditing Practices Board. 
 
The financial statements have been prepared on a going concern basis under the 
historical cost convention. The Directors believe that the going concern basis 
is appropriate for the preparation of the financial statements as the Company 
is in a position to meet all its liabilities as they fall due. 
 
3. Share capital 
 
                                                         Share   Share 
                                                       capital premium 
 
                                                             GBP       GBP 
 
                                                       319,926 396,526 
Allotted, called up and fully paid 31,992,653 
ordinary shares of 1p each 
 
                                                       319,926 396,526 
 
4. Loss per share 
 
The basic loss per share is calculated by dividing the loss attributable to 
equity shareholders by the weighted average number of shares in issue. 
 
                                        Six months    Six months      Year ended 
                                             ended         ended      31 January 
                                           31 July       31 July            2018 
                                              2018          2017       (audited) 
                                       (unaudited)   (unaudited) 
 
Weighted average number of shares in    31,992,653    31,992,653      31,468,846 
the period 
 
Total loss attributable to equity               (GBP  (GBP4,541,031)              (GBP 
shareholders of the Company             3,460,505)                   14,258,881) 
 
                                             (11p)         (14p)           (45p) 
Basic loss per share: 
 
 
5. Unrealised foreign exchange loss on borrowings 
 
Unrealised foreign exchange loss on borrowings represents an exchange 
difference on loans denominated in Japanese Yen. 
 
6. Dividends 
 
No interim dividend will be paid. 
 
 
 
END 
 

(END) Dow Jones Newswires

October 26, 2018 11:46 ET (15:46 GMT)