TIDMAIQ
RNS Number : 9772Q
AIQ Limited
25 February 2019
25 February 2019
AIQ Limited
("AIQ" or the "Company")
Full Year Results and Publication of Annual Report
AIQ (LSE: AIQ), a special purpose acquisition company ("SPAC")
formed to undertake one or more acquisitions of a company or
business in the e-commerce sector, announces its results for the
period from the incorporation of the Company on 11 October 2017 to
31 October 2018.
Summary
-- GBP4.0 million (gross of expenses) raised through a subscription on admission to the Official List of the London
Stock Exchange in January 2018
-- Raised a further GBP367,000 (gross of expenses), in aggregate, through a placing and oversubscribed open offer
-- The Board has been active in its search for acquisition opportunities and reviewed a number of potential
candidates in the e-commerce, social media and artificial intelligence sectors
-- Pre-tax loss of GBP654,276 for the period to 31 October 2018 - primarily based on IPO-related costs and
expenditure on the implementation of the Company's investment strategy
-- Strong cash position of GBP4.1 million as at 31 October 2018
-- Basic loss per share of 1.6 pence
Graham Duncan, Chairman of AIQ, commented:
"I am pleased to present our first annual results following our
listing in January 2018. We have been active in our search for
acquisitions and continue to review a number of opportunities in
the e-commerce, social media and artificial intelligence sectors,
within the UK, Europe and Asia. During the year, we were also
successful in raising further capital.
"On behalf of the Board, I would like to thank our shareholders
for their support and we very much look forward to updating the
market at the earliest opportunity regarding progress in our
execution on our investment strategy. With the growth in the global
e-commerce markets showing no signs of abating, and a strong
balance sheet, we are well-positioned to execute on our targets and
deliver shareholder value."
Enquiries
AIQ Limited +44(0)754 900 5681
Graham Duncan, Chairman
VSA Capital Limited (Financial Adviser
& Corporate Broker) +44(0)20 3005 5000
Andrew Raca
Luther Pendragon (Media Relations)
Claire Norbury +44(0)20 7618 9100
Introduction
AIQ was formed as a special purpose acquisition company ("SPAC")
to undertake one or more acquisitions of a company or businesses
involved in the e-commerce sector. The Company raised gross
proceeds of approximately GBP4.0 million (net proceeds of
approximately GBP3.6 million) by way of a subscription from its
founding directors and other investors and its Ordinary Shares were
admitted to trading on the Official List of the London Stock
Exchange (by way of a Standard Listing) ("Admission") on 9 January
2018.
In April 2018, the Company raised a further GBP115,000 (gross of
expenses) by way of a placing of new Ordinary Shares and, in June
2018, approximately GBP252,000 (gross of expenses) through an open
offer. These funds were raised to provide additional capital for
acquisitions and to increase liquidity in the Company's shares.
Since Admission, the Board has been active in its search for
acquisition opportunities. The Directors continue to review a
number of opportunities in the e-commerce, social media and
artificial intelligence sectors, within the UK, Europe and Asia.
Discussions are at an exploratory stage and the Company has not yet
entered into negotiations with such parties.
Financial Review
The Company's cash balances at 31 October 2018 totaled GBP4.1
million, derived both from the subscription at the time of
Admission to the Standard Listing segment of the London Stock
Exchange in January and the subsequent placing and open offer in
April and June respectively.
No investments were made during the period to 31 October
2018.
The loss for the period to 31 October 2018 was GBP654,276. The
Company did generate any revenues and the majority of the loss
reflects the transaction costs of GBP438,096 associated with the
Company's Standard Listing and fundraisings as well as day-to-day
administrative expenses of GBP381,806, partially offset by net
foreign exchange gains of GBP147,078.
The Company is incorporated in the Cayman Islands, and its
activities are subject to taxation at a rate of 0%.
The loss per share was 1.6 pence.
Dividends
The Directors of AIQ do not propose to declare a dividend for
the period ended 31 October 2018.
Growth Strategy and Outlook
The Company's near-term goals are to execute its acquisition
strategy in the e-commerce sector. As noted above, the Directors
are focusing on businesses located in the UK, Europe and Asia. In
particular, the acquisition strategy is focused on identifying
businesses or companies that:
-- are run by a management team with a strong track record of generating growth for shareholders and a proven
experienced business record; and/or
-- have attractive commercial prospects within the e-commerce or social marketing sectors in general; and/or
-- have existing members or consumers; and/or
-- are within lower risk jurisdictions, within countries with a strong focus on protecting investors' interests, low
sovereign risk and those that encourage and incentivise investment; and/or
-- have revenues that offer the potential for near-term positive cash flows; and/or
-- can be funded adequately to be capable of delivery of a realistic plan of achieving credible milestones and
significant growth opportunities for shareholders.
The Directors believe that these markets offer significant
growth potential. The global e-commerce market is predicted to be
worth $2.3 trillion in 2019, with double-digit growth projected
until at least 2022. Asia-Pacific remains the largest market
globally, where e-commerce is already the leading retail channel
thanks to the region's advanced digital infrastructure and
propensity to embrace technology innovation. The UK is the largest
market in Western Europe for e-commerce sales, despite being only
the third-largest retailing market, and this year e-commerce is
expected to become the main retail channel in the UK, ahead of its
neighbours in Europe.
As a result, the Board remains greatly encouraged by the
opportunities with which it is being presented. With the growth in
the global e-commerce markets showing no signs of abating, and a
strong balance sheet, the Company is well-positioned to execute on
its targets and deliver shareholder value. The Board looks forward
to updating the market, as applicable, in due course.
Publication of Annual Report
The Company's annual report and accounts for the period from
incorporation on 11 October 2017 to 31 October 2018 has been
published today and is available on the AIQ website at:
http://www.aiqhub.com/web/investor.php.
STATEMENT OF COMPREHENSIVE INCOME
Period from
11 October 2017
to
Continuing operations 31 October 2018
GBP
Administrative expenses (381,806)
Transaction costs (438,096)
Gains on foreign exchange (net) 147,078
Operating loss (672,824)
Finance income 18,548
Loss before taxation (654,276)
Taxation -
-----------------
Total comprehensive loss attributable
to equity holders of the Company for
the period (654,276)
=================
Loss per share - basic and diluted
(GBP per share) (0.016)
There is no other comprehensive income for the period.
STATEMENT OF FINANCIAL POSITION
As at 31 October 2018
31 October 2018
GBP
Assets
Current assets
Prepayments and other
receivables 15,708
Cash and cash equivalents 4,103,928
----------------
Total current assets 4,119,636
----------------
Total assets 4,119,636
----------------
Equity and liabilities
Capital and reserves
Ordinary shares 518,394
Share premium 3,848,420
Accumulated losses (654,276)
----------------
Total equity 3,712,538
----------------
Liabilities
Current liabilities
Accruals and other payables 118,287
Amounts due to a director 288,811
Total current liabilities 407,098
----------------
Total equity and liabilities 4,119,636
----------------
The financial statements were approved and authorised for issue
by the Board of Directors on 22 February 2019 and signed on its
behalf by:
Soon Beng Gee (Nicholas)
Director
STATEMENT OF CHANGES IN EQUITY
For the period from 11 October 2017 to 31 October 2018
Share Share premium Accumulated Total equity
capital losses
GBP GBP GBP GBP
On incorporation 152 - - 152
Total comprehensive
loss for the financial
period - - (654,276) (654,276)
Issue of shares during
the period 518,242 3,848,420 - 4,366,662
Balance at 31 October
2018 518,394 3,848,420 (654,276) 3,712,538
--------- -------------- ------------ -------------
STATEMENT OF CASH FLOWS
Period from
11 October 2017
to
31 October 2018
GBP
Cash flows from operating activities
Loss before taxation (654,276)
Adjustment for:-
Interest income (18,548)
Gain on foreign exchange (147,078)
-----------------
Operating loss before working
capital changes (819,902)
Increase in receivables (15,708)
Increase in payables 118,287
Increase in amount owing to a
director 288,811
-----------------
Cash used in operations (428,512)
Interest received 18,548
Net cash used in operating activities (409,964)
-----------------
Cash flows from financing activities
Proceeds from issue of ordinary
shares 4,366,814
Net cash generated from financing
activities 4,366,814
-----------------
Net increase in cash and cash
equivalents 3,956,850
Cash and cash equivalents at beginning -
of the period
Effect of exchange rates on cash
and cash equivalents 147,078
Cash and cash equivalents at end
of the period 4,103,928
-----------------
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END
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