TIDMAIQ
RNS Number : 7929G
AIQ Limited
26 July 2019
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF EU REGULATION 596/2014.
26 July 2019
For Immediate Release
AIQ Limited
("AIQ" or the "Company")
Interim Results
AIQ Limited, 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 unaudited interim
results for the six months ended 30 April 2019.
Highlights
-- Net loss reduced to GBP250,802 (H1 2017/18*: GBP620,984 loss)
-- Strong cash position of GBP3.9 million at 30 April 2019 (31 October 2018: GBP4.1 million)
-- The Board has been active in its search for acquisition
opportunities and reviewed a number of potential candidates
* H1 2017/18 covers the period from the Company's incorporation
on 11 October 2017 to 30 April 2018
Chairman's Statement
During the six months to 30 April 2019, the Board remained
active in its search for acquisition opportunities. The Directors
have reviewed a number of opportunities in the e-commerce, social
media and artificial intelligence sectors, however none have yet
met the criteria for the Company to proceed to negotiations with
those parties. The Board continues to review and assess potential
acquisition targets, but discussions are at an exploratory stage
and may or may not lead to negotiations. Nonetheless, the Board
remains confident of identifying an appropriate target and
delivering on our stated strategy of acquiring one or more
businesses involved in the e-commerce sector.
Financial review
The net loss for the six months ended 30 April 2019 was
GBP250,802 (H1 2017/18: GBP620,984 loss), reflecting day-to-day
administrative expenses of GBP203,926 (H1 2017/18: GBP143,459) and
foreign exchange losses of GBP56,519 (H1 2017/18: GBP69,488 loss).
The reduction in loss compared with H1 2017/18 is primarily due to
the transaction costs of GBP416,812 in the earlier period
associated with the Company's Standard Listing. The increase in
administrative expenses primarily resulted from six months of full
operations for the period to 30 April 2019 compared with
approximately four months in the first half of the prior year from
the Standard Listing on 9 January 2018 to 30 April 2018.
As a result of the lower net loss, the loss per share was
reduced to 0.5p (H1 2017/18: 1.9p loss).
The Company had a strong cash position of GBP3.9 million at 30
April 2019 compared with GBP4.1 million at 31 October 2018 and
GBP3.8 million at 30 April 2018.
Dividends
The Directors do not propose a dividend for the period ended 30
April 2019.
Outlook
The Board and management team of AIQ remain focused on executing
on the Company's stated acquisition strategy and meet our
commercial objectives.
On behalf of the Board, I would like to thank our shareholders
for their support and we look forward to updating the market at the
earliest opportunity regarding progress on our investment strategy.
With the sustained growth in the global e-commerce markets, we
continue to believe that we are well-positioned to execute on our
targets and remain confident of delivering shareholder value.
Principal risks and uncertainties for the remaining six months
of the financial year
The principal risks and uncertainties for the remainder of the
financial year relate to the Company's ability to execute our
acquisition strategy.
Graham Duncan
Non-Executive Chairman
26 July 2019
STATEMENT OF DIRECTORS' RESPONSIBILITIES IN RESPECT OF THE
CONDENSED INTERIM REPORT AND CONDENSED FINANCIAL STATEMENTS
The Directors confirm that the condensed consolidated interim
financial information has been prepared in accordance with
International Accounting Standard 34, 'Interim Financial
Reporting', as adopted by the European Union and that the Interim
Report includes a fair review of the information required by DTR
4.2.7R and DTR 4.2.8R, namely:
-- an indication of important events that have occurred during
the first six months and their impact on the condensed consolidated
interim financial information, and a description of the principal
risks and uncertainties for the remaining six months of the
financial year; and
-- material related-party transactions in the first six months and any material changes in the related-party transactions described in the last Annual Report.
A list of current directors is maintained on the Company's
website at: http://www.aiqhub.com/web/keypeople.php
There have been no changes since publication of the Company's
annual report for the period ended 31 October 2018.
By order of the Board
Graham Duncan
Non-Executive Chairman
Enquiries
AIQ Limited +44 (0)754 900 5681
Graham Duncan, Chairman
VSA Capital Limited (Financial Adviser
& Broker) +44 (0)20 3005 5000
Andrew Raca
Luther Pendragon (Media Relations)
Claire Norbury +44 (0)20 7618 9100
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 April 2019
Note Six months Period from Period from
ended 11 Oct 2017 11 Oct 2017
30 Apr to to
2019 30 Apr 2018 31 Oct 2018
Unaudited Unaudited Audited
GBP GBP GBP
Administrative expenses (203,926) (143,459) (381,806)
Transaction costs - (416,812) (438,096)
(Loss)/gain on foreign exchange (56,519) (69,488) 147,078
Operating loss (260,445) (629,759) (672,824)
Finance income 9,643 8,775 18,548
Loss before taxation (250,802) (620,984) (654,276)
Taxation 9 - - -
------------ -------------- --------------
Total comprehensive
loss attributable to
equity holders of the
Company for the period (250,802) (620,984) (654,276)
============ ============== ==============
Loss per share - basic
and diluted (pence per
share) 10 (0.5) (1.9) (1.6)
The accompanying notes form an integral part of these financial
statements.
CONDENSED STATEMENT OF FINANCIAL POSITION
As at 30 April 2019
Note 30 Apr 2019 31 Oct 2018
Unaudited Audited
GBP GBP
Assets
Current assets
Prepayments and other receivables 12,300 15,708
Cash and cash equivalents 3,872,650 4,103,928
------------ ------------
Total current assets 3,884,950 4,119,636
------------ ------------
Total assets 3,884,950 4,119,636
------------ ------------
Equity and liabilities
Capital and reserves
Ordinary shares 12 518,394 518,394
Share premium 3,848,420 3,848,420
Accumulated losses (905,078) (654,276)
------------ ------------
Total equity 3,461,736 3,712,538
------------ ------------
Liabilities
Current liabilities
Accruals and other payables 134,403 118,287
Amounts due to a director 11 288,811 288,811
Total current liabilities 423,214 407,098
------------ ------------
Total equity and liabilities 3,884,950 4,119,636
------------ ------------
The accompanying notes form an integral part of these financial
statements.
CONDENSED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 April 2019
Share Share premium Accumulated Total equity
capital losses
GBP GBP GBP GBP
Issue of shares on incorporation
on 11 October 2017 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
(Audited) 518,394 3,848,420 (654,276) 3,712,538
--------- -------------- ------------ -------------
Total comprehensive
loss for the financial
period - - (250,802) (250,802)
Balance at 30 April 2019
(Unaudited) 518,394 3,848,420 (905,078) 3,461,736
--------- -------------- ------------ -------------
The accompanying notes form an integral part of these financial
statements.
CONDENSED STATEMENT OF CASH FLOWS
For the six months ended 30 April 2019
Six-month Period Period
period from from
ended 11 Oct 11 Oct
30 Apr 2017 to 2017 to
2019 30 Apr 31 Oct
Unaudited 2018 2018
GBP Unaudited Audited
GBP GBP
Cash flows from operating
activities
Loss before taxation (250,802) (620,984) (654,276)
Adjustment for:-
Interest income (9,643) (8,775) (18,548)
Loss/(gain) on foreign exchange 56,519 69,488 (147,078)
----------- ----------- -----------
Operating loss before working
capital changes (203,926) (560,271) (819,902)
Decrease/(increase) in
receivables 3,408 (17,708) (15,708)
Increase in payables 16,116 47,083 118,287
Increase in amount owing
to a director - 275,412 288,811
----------- ----------- -----------
Cash used in operations (184,402) (255,484) (428,512)
Interest received 9,643 8,775 18,548
Net cash used in operating
activities (174,759) (246,709) (409,964)
----------- ----------- -----------
Cash flows from financing
activities
Proceeds from issue of
ordinary shares - 4,113,939 4,366,814
Net cash generated from
financing activity - 4,113,939 4,366,814
----------- ----------- -----------
Net (decrease)/increase
in cash and cash equivalents (174,759) 3,867,230 3,956,850
Cash and cash equivalents
at beginning of the period 4,103,928 - -
Effect of exchange rates
on cash and cash equivalents (56,519) (69,488) 147,078
Cash and cash equivalents
at end of the period 3,872,650 3,797,742 4,103,928
----------- ----------- -----------
The accompanying notes form an integral part of these financial
statements.
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL
STATEMENTS
1. GENERAL INFORMATION
AIQ Limited ("the Company") was incorporated and registered in
The Cayman Islands as a private company limited by shares on 11
October 2017 under the Companies Law (as revised) of The Cayman
Islands, with the name AIQ Limited, and registered number
327983.
The Company's registered office is located at 5th Floor Genesis
Building, Genesis Close, PO Box 446, Cayman Islands, KY1-1106.
2. PRINCIPAL ACTIVITIES
The principal activity of the Company is to seek acquisition
opportunities, initially focusing on the e-commerce sector.
3. ACCOUNTING POLICIES
a) Basis of preparation
The condensed interim financial statements have been prepared in
accordance with the Disclosure and Transparency Rules of the
Financial Conduct Authority and International Accounting Standard
34 "Interim Financial Reporting" (IAS 34) as adopted by the
European Union. Other than as noted below, the accounting policies
applied by the Company in these condensed interim financial
statements are the same as those set out in the Company's audited
financial statements for the period ended 31 October 2018. These
financial statements have been prepared under the historical cost
convention.
These condensed financial statements do not include all of the
information required for a complete set of IFRS financial
statements. However, selected explanatory notes are included to
explain events and transactions that are significant to an
understanding of the changes in the Company's financial position
and performance since the audited financial statements for the
period ended 31 October 2018.
The condensed interim financial statements are unaudited and
have not been reviewed by the auditors and were approved by the
Board of Directors on 25 July 2019.
The financial information is presented in Pounds Sterling (GBP),
which is the Company's functional and presentational currency.
A summary of the principal accounting policies of the Company
are set out below.
b) Going concern
The Company meets its day-to-day working capital requirements
through cash generated from the capital it raised on admission to
the London Stock Exchange and subsequently. It has GBP3.9m in cash
which is sufficient for its present needs.
Taking its cash position into account, the Directors are
satisfied that the Company has adequate resources to continue in
operational existence for the foreseeable future and for a period
of not less than 12 months from the date of signing the financial
statements. Thus they continue to adopt the going concern basis of
accounting in preparing the interim financial statements.
c) Foreign currency translation
The financial statements of the Company are presented in the
currency of the primary environment in which the Company operates
(its functional currency).
Foreign currency transactions are translated into the functional
currency using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the
settlement of such transactions and from the translation at period
end exchange rates of monetary assets and liabilities denominated
in foreign currencies are recognised in profit and loss.
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
(contd.)
d) Financial instruments
Financial assets and financial liabilities are recognised in the
Statement of Financial Position when the Company becomes a party to
the contractual provisions of the instruments. Financial assets and
financial liabilities are initially measured at fair value.
Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities
(other than financial assets and financial liabilities at fair
value through profit or loss) are added to or deducted from the
fair value of the financial assets or financial liabilities, as
appropriate, on initial recognition.
Transaction costs directly attributable to the acquisition of
financial assets or financial liabilities at fair value through
profit or loss are recognised immediately in profit or loss.
e) Impairment of financial assets
A forward-looking expected credit loss (ECL) review is required
for debt instruments measured at amortised cost or held at fair
value through other comprehensive income, nancial guarantees not
measured at fair value through pro t or loss and other receivables
that give rise to an unconditional right to consideration.
As permitted by IFRS 9, the Company applies the "simpli ed
approach" to trade receivables, contract assets and lease
receivables and the "general approach" to all other nancial assets.
The general approach incorporates a review for any signi cant
increase in counterparty credit risk since inception. The ECL
reviews include assumptions about the risk of default and expected
loss rates.
f) Financial liabilities
The Company's financial liabilities include amounts due to a
director and other payables and accruals. Financial liabilities are
recognised when the Company becomes a party to the contractual
provision of the instrument. All financial liabilities are
recognised initially at their fair value, net of transaction costs,
and subsequently measured at amortised cost, using the effective
interest method, unless the effect of discounting would be
insignificant, in which case they are stated at cost.
The Company derecognises financial liabilities when, and only
when, the Company's obligations are discharged, cancelled or they
expire.
g) Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits held
on call with banks and other short term (having maturity within 3
months) highly liquid investments that are readily convertible into
known amounts of cash and which are subject to an insignificant
risk of changes in value.
h) Earnings per share
Basic earnings per share is computed using the weighted average
number of shares outstanding during the period. Diluted earnings
per share is computed using the weighted average number of shares
during the period plus the dilutive effect of dilutive potential
ordinary shares outstanding during the period.
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
(contd.)
4. RECENT ACCOUNTING PRONOUNCEMENTS
a) New interpretations and revised standards effective for the
period ended 30 April 2019
The Company has adopted the following new standards and
interpretations which became effective on 1 January 2018 with no
significant impact on these financial statements:
- IFRS 9 'Financial instruments'.
- IFRS 15 'Revenue from Contracts with Customers'
- IFRIC 22 'Foreign currency transactions and advance consideration'.
- IFRIC 23 'Uncertainty over income tax treatments'.
- Amendments to IFRS 2 'Classification and measurement of share-based payment transactions'.
- Annual improvements to IFRS standards 2014-2016 cycle: IFRS 1 and IAS 28.
For IFRS 9, there have been no reclassifications of financial
assets or liabilities on adoption. The approach to credit losses
will change from an incurred loss model to expected loss, though no
such allowance is considered necessary.
b) Standards and interpretations in issue but not yet
effective
A number of new standards and amendments to existing standards
have been issued but are not effective for the period ended 30
April 2019. The Directors do not anticipate that the adoption of
these revised standards and interpretations will have a significant
impact on the figures included in the financial statements in the
period of initial application other than the following:
IFRS 16 'Leases' has been issued by the International Accounting
Standards Board which the Company has decided not to adopt
early.
IFRS 16 supersedes IAS 17 'Leases' and introduces a new single
lessee accounting model which eliminates the current distinction
between operating and finance leases for lessees. IFRS 16 requires
lessees to capitalise all leases on the statement of financial
position by recognising a 'right-of-use' asset and a corresponding
lease liability for the present value of the obligation to make
lease payments, except for certain short-term leases and leases of
low-value assets. Subsequently, the lease assets will be amortised
and the lease liabilities will be measured at amortised cost.
IFRS 16 removes the distinction between finance and operating
leases. IFRS 16 also requires enhanced disclosures by both lessees
and lessors.
IFRS 16 is mandatory for periods beginning after 1 January 2019,
with earlier application permitted.
On initial adoption of IFRS 16 the Company will be required to
capitalise rented properties at the lease commencement date in the
statement of financial position by recognising them as right-of-use
assets and their corresponding lease liabilities. The right-of use
assets will be amortised over the term of each lease and a finance
charge will be made by reference to the lease liability and
discount rate. The liability is initially to be measured at the
present value of future minimum lease payments. The discount rate
is the rate implicit in the lease, if readily determinable.
The Company plans to adopt the standard in the financial year
beginning on 1 November 2019 and will include required additional
disclosures in its financial statements for that financial
year.
As at 30 April 2019, the Company had entered into one short-term
property lease which had commenced prior to the period-end.
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
(contd.)
5. ACCOUNTING ESTIMATES AND JUDGEMENTS
Preparation of financial information in conformity with IFRS
requires management to make judgements, estimates and assumptions
that affect the application of accounting policies and the reported
amounts of assets, liabilities, income and expenses. The estimates
and associated assumptions are based on historical experience and
various other factors that are believed to be reasonable under the
circumstances, the results of which form the basis of making
judgements about carrying values of assets and liabilities that are
not readily apparent from other sources.
It is the Directors' view that there are no significant areas of
estimation, uncertainty and critical judgements in applying
accounting policies that have significant effect on the amount
recognised in the financial information for the period.
6. FINANCIAL RISK MANAGEMENT
a) Categories of financial instruments
The carrying amounts and fair value of the Company's financial
assets and liabilities as at the end of the reporting period are as
follows:
As at As at
30 Apr 31 Oct
2019 2018
GBP GBP
Financial assets
Loans and receivables (including cash
and cash equivalents) 3,884,950 4,119,636
---------- ----------
Financial liabilities
Financial liabilities at amortised cost 423,214 407,098
---------- ----------
b) Financial risk management objectives and policies
The Company is exposed to a variety of financial risks: market
risk (including interest rate risk and currency risk), credit risk
and liquidity risk. The risk management policies employed by the
Company to manage these risks are discussed below. The primary
objectives of the financial risk management function are to
establish risk limits, and then ensure that exposure to risk stays
within these limits. The operational and legal risk management
functions are intended to ensure proper functioning of internal
policies and procedures to minimise operational and legal
risks.
i) Interest rate risks
All cash holdings and cash equivalents are held in accounts with
variable rates.
ii) Currency risks
The Company is exposed to exchange rate fluctuations as
transactions are undertaken denominated in foreign currencies.
At 30 April 2019, the Company had GBP3,034,000 of cash and cash
equivalents in a United States Dollar account. At 30 April 2019,
had the exchange rate between the Pound Sterling and United States
Dollar increased/decreased by 10%, the effect on the result in the
period would be a gain of GBP303,400 / loss of GBP303,400
respectively.
iii) Credit risk
Credit risk refers to the risk that a counterparty will default
on its contractual obligations resulting in nancial loss to the
Company. The Company's nancial assets comprise cash and cash
equivalents. As described in Note 3(e), the Company has adopted the
expected credit loss approach under IFRS 9. No allowance was
considered necessary at the period-end.
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
(contd.)
The Company only deposits cash with major banks with high
quality credit standing and limits exposure to any one
counterparty.
Concentrations of credit risk exist to the extent that the
Company's cash balances were all held with RHB Bank.
iv) Liquidity risk
Liquidity risk is the risk that the Company will encounter
difficulty in meeting the obligations associated with its financial
liabilities. The Company's approach to managing liquidity is to
ensure, as far as possible, that it will always have sufficient
liquidity to meet its liabilities when due, under both normal and
stressed conditions, without incurring unacceptable losses or
risking damage to the Company's reputation.
The Company's financial liabilities are primarily amounts due to
a director. The amounts are unsecured, interest-free and repayable
on demand.
7. SEGMENT REPORTING
IFRS 8 defines operating segments as those activities of an
entity about which separate financial information is available and
which are evaluated by the Board of Directors to assess performance
and determine the allocation of resources. The Board of Directors
is of the opinion that under IFRS 8 the Company has only one
operating segment and one geographic market in the UK. The Board of
Directors assesses the performance of the operating segment using
financial information that is measured and presented in a manner
consistent with that in the Financial Statements. Segmental
reporting will be reviewed and considered in light of the
development of the Company's business over the next reporting
period.
AIQ Limited has no activities at present other than reviewing
possible investment opportunities.
8. STAFF COSTS AND KEY MANAGEMENT EMOLUMENTS
Period from Period
Six months 11 Oct 2017 from 11
ended 30 to 30 Apr Oct 2017
Apr 2019 2018 to 31 Oct
2018
Unaudited Unaudited Audited
GBP GBP GBP
Key management emoluments
Salaries and benefits 69,500 46,333 115,833
Total 69,500 46,333 115,833
------------- -------------- ------------
Executive Directors
Soon Beng Gee 21,000 14,000 35,000
Lee Chong Liang 21,000 14,000 35,000
Non-executive Directors
Graham Duncan 15,000 10,000 25,000
Harry Chathli 12,500 8,333 20,833
Total 69,500 46,333 115,833
------- ------- --------
Included within accruals is GBP112,000 (31 October 2018:
GBP70,000), which relates to remuneration of the Executive
Directors, who have not yet taken payment for their fees.
The Company did not have any employees during the period ended
30 April 2019.
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
(contd.)
9. TAXATION
The Company is incorporated in the Cayman Islands, and its
activities are subject to taxation at a rate of 0%.
10. EARNINGS PER SHARE
The Company presents basic and diluted earnings per share
information for its ordinary shares. Basic earnings per share are
calculated by dividing the profit or loss attributable to ordinary
shareholders of the Company by the weighted average number of
ordinary shares in issue during the reporting period. Diluted
earnings per share are determined by adjusting the profit or loss
attributable to ordinary shareholders and the weighted average
number of ordinary shares outstanding for the effects of all
dilutive potential ordinary shares.
There is no difference between the basic and diluted earnings
per share, as the Company has no potential ordinary shares.
Six months Period from Period
ended 30 11 Oct 2017 from 11
Apr 2018 to 30 Apr Oct 2017
2018 to 31 Oct
2018
Unaudited Unaudited Audited
GBP GBP GBP
Loss after tax attributable to
owners of the Company (250,802) (620,983) (654,276)
Weighted average number of shares:
* Basic 51,839,375 31,350,007 41,007,680
Loss per share (pence)
* Basic (0.5) (1.9) (1.6)
11. AMOUNTS DUE TO A DIRECTOR
As at As at
30 Apr 2019 31 Oct 2018
Unaudited Audited
GBP GBP
Due to a director 288,811 288,811
Total 288,811 288,811
------------- --------------
The amounts due to a director are unsecured, interest free and
repayable on demand.
12. SHARE CAPITAL
Six months Period
ended ended
30 Apr 2019 31 Oct 2018
Unaudited Audited
GBP GBP
As at beginning of period 518,394 -
Issued during the period - 518,394
As at end of period 518,394 518,394
------------ ------------------
During the six months ended 30 April 2019, there were no changes
in the issued share capital of the Company.
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
(contd.)
13. SUBSEQUENT EVENTS
There have been no events after the reporting date that require
disclosure in line with IAS10 events after the reporting
period.
14. CAPITAL MANAGEMENT
The Company manages its capital to ensure that it will be able
to continue as a going concern while maximising the return to
shareholders through the optimisation of the balance between debt
and equity.
The capital structure of the Company as at 30 April 2019
consisted of ordinary shares and equity attributable to the
shareholders of the Company, totalling GBP3,461,736 (disclosed in
the Statement of Changes in Equity).
The Company reviews the capital structure on an on-going basis.
As part of this review, the Directors consider the cost of capital
and the risks associated with each class of capital.
15. RELATED PARTY TRANSACTIONS
The remuneration of the Directors, the key management personnel
of the Company, is set out in note 8.
As at 30 April 2019, there is a balance due to a director of
GBP288,811 (see note 11).
16. SEASONALITY OF THE COMPANY'S OPERATIONS
There are no seasonal factors that materially affect the
operations of the Company.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR DXGDRISDBGCU
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