TIDMIBPO
RNS Number : 0484U
iEnergizer Limited
20 November 2019
20 November 2019
CORRECTION: INTERIM RESULTS FOR THE SIX MONTHSED 30 SEPTEMBER
2019
The following amendments have been made to the 'Interim Results'
announcement released on 13 November at 07:00am (UK Time) under RNS
No 1712T.
-- The original RNS stated the Dividend record date as 21(st)
November 2019. This is corrected to a Dividend record date of
22(nd) November 2019.
-- The original RNS stated that the Company's Ordinary Shares
were expected to go ex-dividend on 22(nd) November 2019. This is
corrected to 21(st) November 2019.
All other details remain unchanged.
iEnergizer Limited
("iEnergizer", the "Company" or the "Group")
INTERIM RESULTS FOR THE SIX MONTHSED 30 SEPTEMBER 2019
iEnergizer, the technology services and media solutions leader
for the digital age, reports interim results for the six months
ended September 30, 2019.
Financial Highlights: Sustained profitable revenue growth and
margin improvements, achieved through deepening existing customer
relationships and securing new customer contracts, with ongoing
careful cost management
-- Group Revenue up 13.1% to $96.2m (H1 2019: $85.1m)
-- Service Revenue up 15.6% to $95.2m (H1 2019: $82.4m)
-- EBITDA([1]) of $29.1m (H1 2019: $24.3m)
-- Higher EBITDA margin at 30.2% (H1 2019: 29.1%)
-- Operating profit increased to $26.8m (H1 2019: $23.4m)
-- Higher operating profit margin at 27.8% (H1 2019: 27.5%)
-- Profit before tax increased to $25.0m (H1 2019: $21.0m)
-- Higher profit before tax margin at 25.9% (H1 2019: 24.6%)
-- Profit after tax increased to $21.6m (H1 2019: $17.3m)
-- Net debt([2]) of $0.43m (31 March 2019: $3.9m)
-- Proposing interim dividend of 5.2p per ordinary share ($12.7m) (H1 2019: nil p)
Operational Highlights: Continued focus on higher margin work
and success in business development with existing and new
customers.
-- Services: Double-digit revenue growth to $95.2m (H1 2019:
$82.4m) through: the addition of several new clients; and increased
billable work volumes and new contract wins from existing clients,
including higher margin activity.
-- Business Process Outsource ("BPO"): Strong revenue growth of
23.6% to $59.4m in H1 2020 (H1 2019: $48.1m) and EBITDA margins
20.3% higher at $20.8m (H1 2019: $17.3m), as key customers
continued to increase workload volumes. The focus remains on
recurring revenue streams from long-term customer relationships
across all verticals.
-- Content Division: Revenue growth of 4.3% to $35.7m in H1 2020
(H1 2019: $34.3m) and increased EBITDA margins by 18.4% to $8.8m
(H1 2019: $7.5m), achieved despite structural pressures in the
traditional publishing market.
o New E-Learning projects, related to design and development of
class room training material for virtualization projects, supported
revenue growth in Content Division.
o Continued development of new course material and Learning
Management Systems (LMS) for the Off-The-Shelf (OTS) content
service.
o Growing customer base, amongst existing and new customers, for
the Scientific Publishing and Remittance Integration Services
("SciPris") product line.
o Growing customer pipeline for new services, such as Anti Money
Laundering KYC service.
-- New business development:
o US based sales team continued to focus on three strategic
priorities: to enhance and grow key accounts; to identify and win
new business through new customers as well as target our existing
accounts; and to cross-sell and generate leads for additional
services.
o Acquisition of multiple new customers in H1 2020 across
iEnergizer's business lines of Business Process Outsource and
Content Services Division, with revenue expected to contribute from
H2 2020.
-- Cost management:
o Continued focus on cost saving initiatives.
o Increased proportion of division-specific higher margin work,
particularly in non-voice based processes including content
writing, financials, entertainment gaming support, content
technology and digital solutions.
o Effective use of technology to handle greater volumes from key
customers without notable additional human resource.
-- Interim Dividend:
o In line with the progressive dividend policy, the Company is
pleased to announce an interim dividend of 5.2p with the Dividend
record date of 22nd November 2019. This interim dividend reflects
the Board's confidence in the Group's business plan and growth
prospects.
o The Company's Ordinary Shares are expected to go ex-dividend
on 21st November 2019 and the interim dividend is expected to be
paid on 20th December 2019.
Marc Vassanelli, Chairman of iEnergizer, commented:
"This has been another successful period for iEnergizer across
each division, despite structural challenges in some business
areas. The continuation of profitable growth has been driven by our
colleagues' continued efforts, in deepening existing customer
relationships and attracting new customers via iEnergizer's
compelling and evolving proposition, coupled with careful cost
management. As a result, we are pleased to announce an interim
dividend of 5.2p, for the first time.
"We benefit from a solid foundation, and with continued strong
operational execution, the development of new sales initiatives and
differentiated offerings, underpinned by a healthy balance sheet
and substantial growth opportunities, we expect sustained business
performance through the second half of the year. The Board looks
forward to the remainder of the year with confidence."
[1] EBITDA has been calculated under the IFRS 16 accounting
standards, under which a company's operating lease liabilities are
shown as liabilities on the balance sheet, together with the
related assets that correspond to the right to use such assets over
the remaining life of the related lease contracts. If these impacts
had not been taken into consideration, the EBITDA would have been
$28.24m.
[2] Net Debt has been calculated after excluding IFRS 16 impact
of capitalization of leases as "Right of Use Assets" and their
consequent lease liability creation. If these impacts had been
included, Net Debt would have been $6.72m
-Ends-
iEnergizer Ltd. +44 (0)1481 242233
Chris de Putron
Mark De La Rue
+44 (0)20 3727
FTI Consulting - Communications Adviser 1000
Jonathon Brill / Eleanor Purdon
Arden Partners - Nominated adviser and Broker
Ciaran Walsh / Steve Douglas / Dan Gee-Summons
(Corporate Finance) +44 (0)20 7614
James Reed-Daunter (Equity Sales) 5900
iEnergizer Limited and its subsidiaries
Unaudited Condensed Consolidated Interim Financial
Statements
Prepared in accordance with International Financial Reporting
Standards (IFRS)
Six months ended 30 September 2019 and 2018
Unaudited Condensed Consolidated Statements of Financial
Position
(All amounts in United States Dollars, unless otherwise
stated)
Notes As at As at
30 September 31 March 2019
2019
Unaudited Audited
-------------------------------------- ------- ---------------------------- -----------------------
ASSETS
Non-current
Goodwill 5 102,254,951 102,256,665
Other intangible assets 6 18,422,167 12,484,053
Property, plant and equipment 7 6,787,035 6,607,072
Long- term financial asset 639,442 1,681,981
Non-current tax assets 807,223 1,095,365
Deferred tax asset 4,776,269 4,726,068
Other non current assets 9,987 33,098
Non-current assets 133,697,074 128,884,302
---------------------------- -----------------------
Current
Trade and other receivables 34,623,099 36,675,342
Cash and cash equivalents 42,072,283 42,413,215
Short- term financial assets 8 7,903,185 7,058,455
Current tax assets 404,143 505,345
Other current assets 3,365,085 3,320,502
Current assets 88,367,795 89,972,859
---------------------------- -----------------------
Total assets 222,064,869 218,857,161
============================ =======================
EQUITY AND LIABILITIES
Equity
Share capital 3,776,175 3,776,175
Share compensation reserve 63,986 63,986
Additional paid in capital 15,451,809 15,451,809
Merger reserve (1,049,386) (1,049,386)
Retained earnings 129,453,634 131,950,337
Other components of equity (12,296,204) (11,669,812)
Total equity attributable to equity holders
of the parent 135,400,014 138,523,109
---------------------------- -------------------------
Notes As at As at
30 September 31 March 2019
2019
Unaudited Audited
------ ------------- --------------
Liabilities
Non-current
Long term borrowings 38,743,275 870,535
Employee benefit obligations 4,046,496 4,101,097
Other non-current liabilities - 216,669
Deferred tax liability 9,313,757 8,574,576
Non-current liabilities 52,103,528 13,762,877
---------------------------- -----------------------
Current
Short term borrowings - 8,934
Trade and other payables 13,497,589 10,574,896
Employee benefit obligations 1,000,647 858,384
Current portion of long term
borrowings 10,045,091 45,403,496
Other current liabilities 10,018,000 9,725,465
Current liabilities 34,561,327 66,571,175
---------------------------- -----------------------
Total equity and liabilities 222,064,869 218,857,161
============================ =======================
(The accompanying notes are an integral part of these Unaudited
Condensed Consolidated Interim Financial Statements)
Unaudited Condensed Consolidated Income Statements
(All amounts in United States Dollars, unless otherwise
stated)
(The accompanying notes are an integral part of these Unaudited
Condensed Consolidated Interim Financial Statements)
Notes For the year For the six
ended months ended
30 September 30 September
2019 2018
Unaudited Unaudited
------------------------------- ------ ------------- --------------
Income from operations
Revenue from services 95,180,896 82,361,309
Other operating income 1,046,950 2,724,771
96,227,846 85,086,080
------------- --------------
Cost and expenses
Outsourced service cost 21,219,347 17,959,356
Employee benefits expense 39,580,811 35,284,407
Depreciation and amortization 2,063,317 2,680,368
Other expenses 6,566,098 5,735,424
69,429,573 61,659,555
------------- --------------
Operating profit 26,798,273 23,426,525
Finance income 360,107 288,208
Finance cost (2,199,643) (2,760,603)
Profit before tax 24,958,737 20,954,130
------------- --------------
Income tax expense 3,387,120 3,696,473
Profit for the year attributable
to equity holders of the parent 21,571,617 17,257,657
============= ==============
Earnings per share 9
Basic 0.11 0.09
Diluted 0.11 0.09
Par value of each share in
GBP 0.01 0.01
Unaudited Condensed Consolidated Statements of Other
Comprehensive Income
(All amounts in United States Dollars, unless otherwise
stated)
For the six For the six
months ended months ended
-------------------------------------
30 September 30 September
2019 2018
Unaudited Unaudited
------------------------------------- ------------------------------- --------------------------------
Profit after tax for the year 21,571,617 17,257,657
Other comprehensive income
Items that will be reclassified
subsequently to the consolidated
income statement
Exchange differences on translating
foreign operations (808,836) (5,458,225)
Net other comprehensive (loss)
that will be reclassified
subsequently to consolidated
income statement (808,836) (5,458,225)
------------------------------- --------------------------------
Items that will not be reclassified
subsequently to income statement
Remeasurement of the net defined 257,399 -
benefit liability
Income tax relating to items (74,954) -
that will not be reclassified
Net other comprehensive income 182,445 -
that will be not be reclassified
subsequently to consolidated
income statement
------------------------------- --------------------------------
Other comprehensive income/(loss)
for the year (626,391) (5,458,225)
Total comprehensive income
attributable to equity holders 20,945,226 11,799,432
------------------------------- --------------------------------
(The accompanying notes are an integral part of these Unaudited
Condensed Consolidated Interim Financial Statements)
Unaudited Condensed Consolidated Statements of Changes in
Equity
(All amounts in United States Dollars, unless otherwise
stated)
Share Additional Share compensation Merger Other components Retained Total
capital Paid in Capital reserve reserve of equity earnings equity
-----------------------------------------
Foreign Net defined
currency benefit
translation liability
reserve
--------------- ----------------------- ---------------------------- ----------------------- --------------------- -------------------- ------------------- ---------------------------------
Balance as at
01 April
2018 3,776,175 15,451,809 63,986 (1,049,386) (9,219,409) 706,857 100,201,260 109,931,292
--------------- ----------------------- ---------------------------- ----------------------- --------------------- -------------------- ------------------- --------------- ----------------
Profit for the
year - - - - - - 31,749,077 31,749,077
Other
comprehensive
loss - - - - (3,228,735) 71,475 - (3,157,260)
---------------
Total
comprehensive
income for
the year - - - - (3,228,735) 71,475 31,749,077 28,591,817
--------------- ----------------------- ---------------------------- ----------------------- --------------------- -------------------- ------------------- --------------- ----------------
Balance as at
31 March
2019 3,776,175 15,451,809 63,986 (1,049,386) (12,448,144) 778,332 131,950,337 138,523,109
--------------- ----------------------- ---------------------------- ----------------------- --------------------- -------------------- ------------------- --------------- ----------------
(The accompanying notes are an integral part of the Consolidated
Financial Statements)
iEnergizer
Limited
Share Additional Share compensation Merger Other components Retained Total
capital Paid in Capital reserve reserve of equity earnings equity
--------------------------------
Foreign Net defined
currency benefit
translation liability
reserve
--------------- ------------- --------------------- ------------------------------- --------------- ---------------- -------------- -------------------------------
Balance as at
01 April
2019 3,776,175 15,451,809 63,986 (1,049,386) (12,448,144) 778,332 131,950,337 138,523,109
--------------- ------------- --------------------- ------------------------------- --------------- ---------------- -------------- -------------- ---------------
Dividends - - - - - - (24,068,320) (24,068,320)
--------------- ------------- --------------------- ------------------------------- --------------- ---------------- -------------- -------------- ---------------
Transaction
with owners (24,068,320) (24,068,320)
--------------- ------------- --------------------- ------------------------------- --------------- ---------------- -------------- -------------- ---------------
Profit for the
year - - - - - - 21,571,617 21,571,617
Other
comprehensive
loss - - - - (808,836) 182,444 - (626,392)
---------------
Total
comprehensive
income for
the period - - - - (808,836) 182,444 21,571,617 20,945,225
--------------- ------------- --------------------- ------------------------------- --------------- ---------------- -------------- -------------- ---------------
Balance as at
30 September
2019 3,776,175 15,451,809 63,986 (1,049,386) (13,256,980) 960,776 129,453,634 135,400,014
--------------- ------------- --------------------- ------------------------------- --------------- ---------------- -------------- -------------- ---------------
(The accompanying notes are an integral part of these Unaudited
Condensed Consolidated Interim Financial Statements)
Unaudited Condensed Consolidated Statements of Cash Flows
(All amounts in United States Dollars, unless otherwise
stated)
` For the six months For the six months
ended ended
30 September 30 September
2019 2018
(A) Cash flow from operating activities
Profit before tax 24,958,737 20,954,130
Adjustments
Depreciation and amortisation 2,063,317 2,680,368
Loss/(Profit) on disposal of property,
plant and equipment (6,024) (9,312)
Trade receivables written-off/provision
for doubtful debts (65,262) (411)
Unrealised and Realised foreign exchange
gain (174,089) (2,398,514)
Finance income (360,107) (288,208)
Finance cost 2,199,643 2,760,603
------------------------------- --------------------------------
28,616,215 23,698,656
Changes in operating assets and liabilities
(Increase)/ Decrease in trade and
other receivables 2,015,601 (4,050,098)
(Increase)/ Decrease in other assets
(current and non-current) 941,298 (305,985)
Increase / (Decrease) Non-current liabilities,
trade payables & other current liabilities 2,670,121 (3,685,214)
(Decrease)/ Increase in employee benefit
obligations 307,761 (657,949)
------------------------------- --------------------------------
Cash generated from operations 34,550,996 14,999,410
Income taxes paid (2,383,750) (2,704,661)
------------------------------- --------------------------------
Net cash generated from operating
activities 32,167,246 12,294,749
------------------------------- --------------------------------
(B) Cash flow for investing activities
Payments for purchase of property
plant and equipment (1,521,588) (2,005,663)
Investment in fixed deposit (Net) (883,210) 40,211
Proceeds from disposal of property,
plant & equipment 6,581 9,312
Payments for purchase of other intangible
assets (220,909) (196,939)
Interest received 400,808 263,654
Net cash used in investing activities (2,218,318) (1,889,425)
------------------------------- --------------------------------
For the six months For the six
ended months ended
30 September 30 September
2019 2018
(C ) Cash flow from financing activities
Interest paid (2,145,802) (2,371,072)
Repayment of long-term borrowings (4,150,357) (8,274,611)
Net cash used in financing activities (6,296,159) (10,645,683)
------------------------------- -------------------------------
Net increase/(decrease) in cash and cash
equivalents 23,652,769 (240,359)
Dividends paid to equity holders of the (24,068,320) -
parent
Cash and cash equivalents at the beginning
of the year 42,404,281 33,371,550
Effect of exchange rate changes on cash 83,553 292,269
Cash and cash equivalents at the end
of the year 42,072,283 33,423,460
------------------------------- -------------------------------
Cash and cash equivalents comprise
Cash in hand 8,337 12,681
Balances with banks in current account 42,063,946 33,410,779
Bank overdraft - -
42,072,283 33,423,460
------------------------------- -------------------------------
(The accompanying notes are an integral part of these
Consolidated Financial Statements)
Notes to Unaudited Condensed Consolidated Interim Financial
Statements
(All amounts in United States Dollars, unless otherwise
stated)
1. INTRODUCTION
iEnergizer Limited (the 'Company' or 'iEnergizer ') was
incorporated in Guernsey on 12 May 2010.
iEnergizer Limited is a 'Company limited by shares' and is
domiciled in Guernsey. The registered office of the Company is
located at Mont Crevelt House, Bulwer Avenue, St. Sampson,
Guernsey, GY2 4 LH. iEnergizer was listed on the Alternative
Investment Market ('AIM') of London Stock Exchange on 14 September
2010.
iEnergizer through its subsidiaries iEnergizer Holdings Limited,
iEnergizer IT Services Private Limited, iEnergizer Management
Services Limited, iEnergizer BPO Limited, iEnergizer BPO Inc,
iEnergizer Aptara Limited and Aptara Inc and subsidiaries.
(together the 'Group') is engaged in the business of call centre
operations, providing business process outsource (BPO) and content
delivery services, and back office services to their customers, who
are primarily based in the United States of America and India, from
its operating offices in Mauritius and India.
2. GENERAL INFORMATION AND STATEMENT OF COMPLIANCE WITH IFRS
These Unaudited Condensed Consolidated Interim Financial
Statements are for the six months ended 30 September 2019 and 2018.
They have been prepared in accordance with IAS 34 Interim Financial
Reporting as developed and published by the International
Accounting Standards Board ('IASB'), on a going concern basis. They
do not include all of the information required in annual financial
statements in accordance with IFRS, and should be read in
conjunction with the annual financial statements for the years
ended 31 March 2019 and 2018.
The Unaudited Condensed Consolidated Interim Financial
Statements have been prepared and presented in United States Dollar
(US$) which is the Company's functional currency.
These Unaudited Condensed Consolidated Interim Financial
Statements were approved by the Board on 12 November 2019.
The Group has applied the same accounting policies in preparing
these unaudited management financial information as adopted in the
most recent annual audited financial information of the Group.
3. SIGNIFICANT ACCOUNTING POLICIES
The interim financial statements have been prepared in
accordance with the accounting policies adopted in the Group's most
recent annual financial statements for the years ended 31 March
2019 and 2018.
IFRS 16 - Lease Accounting
IFRS 16 will replace the existing leases Standard, IAS 17
Leases, and related interpretations. The standard sets out the
principles for the recognition, measurement, presentation and
disclosure of leases. IFRS 16 introduces a single lease accounting
model and requires a lessee to recognize assets and liabilities for
all leases with a term of more than 12 months, unless the
underlying asset is of low value. The effective date for adoption
of IFRS 16 is annual periods beginning on or after 1 April 2019
The Group has applied IFRS 16 using the modified retrospective
second approach, by measuring the asset at an amount equal to the
lease liability, adjusted by the amount of any prepaid or accrued
lease payments recognized immediately before the date of initial
application.
The Group has applied the following practical expedients:-
a) On Transition to IFRS 16 the weighted average incremental
borrowing rate applied to lease liabilities recognized under IFRS
16 was 8.40%.
b) On Transition for Leases previously accounted for as
operating leases with a remaining lease term of less than 12 months
and for leases of low- value assets the Group has applied the
optional exemptions to not recognize right of use assets but to
account for the lease expense on a straight-line method over the
remaining lease term.
The changes in accounting policies are also expected to be
reflected in the Group's consolidated financial statements as at
and for the year ending 31 March 2020. The Group has initially
adopted IFRS 16 Leases from 1 April 2019. The Group has applied
IFRS 16 using the modified retrospective approach and therefore
comparative information is still reported under IAS -17.
The following is a reconciliation of total operating lease
commitments at 31 March 2019 to the lease liabilities recognised at
1 April 2019:
Reconciliation at 31st March 2019 Amount in USD
Particulars
---------------------------------
Gross Lease Liabilities at 31 March 2019 7,308,682
---------------------------------
Less - Lease with remaining lease term of less
than 12 months -
---------------------------------
Less - Discounted using incremental borrowing
rate (956,476)
---------------------------------
Add - Other Finance Lease liabilities -
---------------------------------
Present value of Lease Liabilities at 31 March
2019 6,352,206
---------------------------------
Policy for new leases started from or after 1 April 2019
For any new contracts entered into on or after 1 April 2019, the
Group considers whether a contract is, or contains a lease. A lease
is defined as a contract or part of contract that conveys the right
to use an asset for a period of time in exchange for
consideration'. To apply this definition the Group assesses whether
it meets three key evaluation points:
o The contract contained identified asset.
o Group has the right to obtain substantially all the economic
benefit from the use of identified asset throughout the period of
use.
o The Group has right to direct the use of the identified asset
throughout the period of use.
Measurement and Recognition of leases as a lessee
At the commencement date, the Group recognizes a right of use
asset and a lease liability on the balance sheet date. The right of
use asset is measured at cost, which is made up of initial
measurement of a lease liability and any initial direct cost
incurred by the Group.
The Group depreciates the right of use assets on a straight line
basis from the lease commencement date to the earlier of the end of
the useful life of the right of use asset or the end of lease term.
The Group also assesses the right of use asset for impairment when
such indicator exists.
At the commencement date, the Group measures the lease liability
at the present value of the lease payments unpaid at that date,
discounted using the interest rate implicit in the lease if that
rate is readily available or the Group's incremental borrowing
rate
The Group has elected to account for short-term leases and
leases of low-value assets using the practical expedients. Instead
of recognising a right-of-use asset and lease liability, the
payments in relation to these are recognised as an expense in
profit or loss on a straight-line basis over the lease term.
Policy for the comparative period (which has not been restated)
has been repeated as follows:-
Determination of whether an arrangement is, or contains, a lease
is based on the substance of the arrangement at inception date
whether fulfilment of the arrangement is dependent on the use of a
specific asset or assets and the arrangement conveys a right to use
the asset.
Group as a lessee
Finance leases, which transfer to the Group substantially all
the risks and benefits incidental to ownership of the leased item,
are capitalized at the commencement of the lease at the fair value
of the leased property or, if lower, at the present value of the
minimum lease payments. Lease payments are apportioned between
finance charges and reduction of the lease liability so as to
achieve a constant rate of interest on the remaining balance of the
liability. Finance charges are recognized in the consolidated
income statement.
Leased assets are depreciated over the useful life of the asset.
However, if there is no reasonable certainty that the Group will
obtain ownership by the end of the lease term, the asset is
depreciated over the shorter of the estimated useful life of the
asset and the lease term.
Operating lease payments are recognized as an expense in the
consolidated income statement on a straight line basis over the
lease term. Rent abatements and escalations are considered in the
calculation of minimum lease payments in the Group's capital lease
testing and in determining straight line rent expense for operating
leases.
Consolidated Lease Position as at 30th Sep 2019
Particulars Amount in USD
--------------------------------------------------
Fixed Asset- Lease Hold Improvement 1 April 2019 6,352,206
--------------
Fixed Asset- Lease Hold Improvement addition
during six months 258,645
--------------
Accumulated Depreciation till 30 September 2019 (619,123)
--------------
Net Block as on 30 September 2019 5,991,728
--------------
4. SIGNIFICANT MANAGEMENT JUDGEMENT IN APPLYING ACCOUNTING POLICIES AND ESTIMATION UNCERTAINTY
When preparing the Unaudited Condensed Consolidated Interim
Financial Statements, management undertakes a number of judgements,
estimates and assumptions about recognition and measurement of
assets, liabilities, income and expenses. The actual results may
differ from the judgements, estimates and assumptions made by
management, and will seldom equal the estimated results.
The judgements, estimates and assumptions applied in the
Unaudited Condensed Consolidated Interim Financial Statements,
including the key sources of estimation uncertainty were the same
as those applied in the Group's last audited financial statements
for the year ended 31 March 2019.
5. GOODWILL
The net carrying amount of goodwill can be analysed as
follows:
Particulars Amount
----------------------------- -----------------
Balance as at 01 April 2018 102,265,086
Impairment loss recognized -
Translation adjustment (8,421)
Balance as at 31 March 2019 102,256,665
----------------------------- -----------------
Particulars Amount
--------------------------------- ------------
Balance as at 01 April 2019 102,256,665
Translation adjustment (1,714)
Balance as at 30 September 2019 102,254,951
--------------------------------- ------------
6. OTHER INTANGIBLE ASSETS
The Intangible assets comprise of computer software, customer
contracts.
Particulars Customer contracts* Computer Patent Trademark Intangibles Total
software under
development
--------------- ----------------------- ------------------ ------------------ ------------------- ----------------- ------------------
Cost
Balance as at
01 April 2018 24,122,232 3,589,438 100,000 12,000,000 132,490 39,944,160
----------------------- ------------------ ------------------ ------------------- ----------------- ------------------
Additions - 576,081 576,081
Disposals - - - - - -
Translation
adjustment (9,418) (221,500) - - - (230,918)
Balance as at
31 March 2019 24,112,814 3,944,019 100,000 12,000,000 132,490 40,289,323
----------------------- ------------------ ------------------ ------------------- ----------------- ------------------
Accumulated
amortisation
Balance as at
01 April 2018 21,806,084 3,235,118 - - 132,490 25,173,692
----------------------- ------------------ ------------------ ------------------- ----------------- ------------------
Amortisation/
impairment
for
the period 2,316,148 523,642 - - - 2,839,790
Disposals - - - - - -
Translation
adjustment (9,418) (198,794) - - - (208,212)
Balance as at
31 March 2019 24,112,814 3,559,966 - - 132,490 27,805,270
----------------------- ------------------ ------------------ ------------------- ----------------- ------------------
Carrying
values as at
31 March
2019 - 384,053 100,000 12,000,000 - 12,484,053
--------------- ----------------------- ------------------ ------------------ ------------------- ----------------- ------------------
*Customer contracts are intangible assets created for long
standing customer relationships in the content delivery segment.
Once the relationship is established the work continues to flow on
a year to year basis. The carrying amount of such contracts is
Nil.
Particulars Customer Computer Patent Trademark Intangibles Right of Total
contracts* software under Use Asset**
development
------------------------- ---------------------- ------------------ ------------------ ------------------- ----------------- ------------------ ---------------
Cost
Balance as at 01 April
2019 24,112,814 3,944,019 100,000 12,000,000 132,490 - 40,289,323
---------------------- ------------------ ------------------ ------------------- ----------------- ------------------ ---------------
Additions - 150,903 - - - 6,635,210 6,786,113
Disposals - - - - - - -
Translation adjustment (1,917) (52,902) - - (45,647) (24,359) (124,825)
Balance as at 30 Sept
2019 24,110,897 4,042,020 100,000 12,000,000 132,490 6,610,851 46,996,258
---------------------- ------------------ ------------------ ------------------- ----------------- ------------------ ---------------
Accumulated amortisation
Balance as at 01 April
2019 24,112,814 3,559,966 - - 132,490 - 27,805,270
---------------------- ------------------ ------------------ ------------------- ----------------- ------------------ ---------------
Amortisation/impairment
for
the period - 198,937 - - - 618,554 817,491
Disposals - - - - - - -
Translation adjustment (1,917) (47,322) - - - 569 (48,670)
Balance as at 30 Sept
2019 24,110,897 3,711,581 - - 132,490 619,123 28,574,091
---------------------- ------------------ ------------------ ------------------- ----------------- ------------------ ---------------
Carrying values as at 30
Sept 2019 - 330,439 100,000 12,000,000 - 5,991,728 18,422,167
------------------------- ---------------------- ------------------ ------------------ ------------------- ----------------- ------------------ ---------------
*Customer contracts are intangible assets created for long
standing customer relationships in the content delivery segment.
Once the relationship is established the work continues to flow on
a year to year basis. The carrying amount of such contracts is
Nil.
**Right of Use Asset has been generated in compliance with
adoption of IFRS 16 on Lease Accounting.
7. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment comprise of the following:
Particulars Computer Office Furniture Air conditioner Vehicle Leasehold Plant Capital Total
and data Equipment and fixtures and generator improvements and machinery work in
equipment progress
-------------- --------------------- ----------------- ---------------- --------------------- ----------------- ------------------ -------------- ---------------- ------------
Cost
Balance as at
01
April 2018 6,109,821 874,293 1,247,285 378,237 37,066 4,400,598 2,256,054 122,531 15,425,885
--------------------- ----------------- ---------------- --------------------- ----------------- ------------------ -------------- ---------------- ------------
Additions 2,741,100 43,318 284,368 565,532 - 593,856 210,222 101,777 4,540,173
Disposals
(Net) (121,154) (12,438) (20,576) (5,678) (14,885) - (18,356) - (193,087)
Translation
and other
adjustment (323,214) (50,401) (72,347) (21,372) (1,434) (277,327) (131,350) - (877,445)
Balance as at
31
March 2019 8,406,553 854,772 1,438,730 916,719 20,747 4,717,127 2,316,570 224,308 18,895,526
--------------------- ----------------- ---------------- --------------------- ----------------- ------------------ -------------- ---------------- ------------
Accumulated
depreciation
Balance as at
01
April 2018 4,782,524 719,304 740,357 208,657 30,768 2,545,403 1,748,184 - 10,775,197
--------------------- ----------------- ---------------- --------------------- ----------------- ------------------ -------------- ---------------- ------------
Depreciation
for
the year 1,158,555 111,228 316,403 66,624 1,697 457,759 236,334 - 2,348,600
Disposals
(Net) (121,154) (12,366) (20,559) (26) (14,885) - (18,356) - (187,346)
Translation
and other
adjustments (297,468) (40,102) (40,177) (13,150) (1,019) (156,878) (99,203) - (647,997)
Balance as at
31
March 2019 5,522,457 778,064 996,024 262,105 16,561 2,846,284 1,866,959 - 12,288,454
--------------------- ----------------- ---------------- --------------------- ----------------- ------------------ -------------- ---------------- ------------
Carrying
values as
at 31 March
2019 2,884,096 76,708 442,706 654,614 4,186 1,870,843 449,611 224,308 6,607,072
-------------- --------------------- ----------------- ---------------- --------------------- ----------------- ------------------ -------------- ---------------- ------------
Particulars Computer Office Furniture Air conditioner Vehicle Leasehold Plant Capital Total
and data Equipment and fixtures and generator improvements and machinery work
equipment in
progress
-------------- ----------- ------------------- ------------------ -------------------- ----------------- ------------------ -------------- ---------- ----------------------
Cost
Balance as at
01
April 2019 8,406,553 854,772 1,438,730 916,719 20,747 4,717,127 2,316,570 224,308 18,895,526
----------- ------------------- ------------------ -------------------- ----------------- ------------------ -------------- ---------- ----------------------
Additions 1,037,685 18,062 13,039 17,696 280,348 83,930 92,826 (21,999) 1,521,587
Disposals
(Net) (78,892) - - - - - (5,215) - (84,107)
Translation
and other
adjustment (123,241) (10,917) (18,707) (13,026) (909) (66,006) (29,339) (1,572) (263,717)
Balance as at
30
Sept 2019 9,242,105 861,917 1,433,062 921,389 300,186 4,735,051 2,374,842 200,737 20,069,289
----------- ------------------- ------------------ -------------------- ----------------- ------------------ -------------- ---------- ----------------------
Accumulated
depreciation
Balance as at
01
April 2019 5,522,457 778,064 996,024 262,104 16,561 2,846,284 1,866,960 - 12,288,454
----------- ------------------- ------------------ -------------------- ----------------- ------------------ -------------- ---------- ----------------------
Depreciation
for
the period 767,123 37,675 50,621 57,422 5,759 230,206 97,020 - 1,245,826
Disposals
(Net) (78,335) - - - - - (5,215) - (83,550)
Translation
and other
adjustments (80,279) (9,689) (12,807) (4,103) (266) (38,569) (22,762) - (168,475)
Balance as at
30
Sept 2019 6,130,966 806,050 1,033,838 315,423 22,054 3,037,921 1,936,003 - 13,282,255
----------- ------------------- ------------------ -------------------- ----------------- ------------------ -------------- ---------- ----------------------
Carrying
values as
at 30 Sept
2019 3,111,139 55,867 399,224 605,966 278,132 1,697,130 438,839 200,737 6,787,035
-------------- ----------- ------------------- ------------------ -------------------- ----------------- ------------------ -------------- ---------- ----------------------
8. SHORT TERM FINANCIAL ASSETS
Particulars 30 September 31 March 2019
2019
---------------------------------------- -------------------- --------------------
Security deposits 9,126 11,985
Restricted cash 5,055,927 4,747,604
Short term investments (fixed deposits
with maturity less than 12 months) 2,758,929 1,803,959
Derivative financial instruments 9,487 426,984
Due from officers and employees 62,526 20,032
Others 7,190 47,891
---------------------------------------- -------------------- --------------------
7,903,185 7,058,455
---------------------------------------- -------------------- --------------------
Short term investments comprise of investment through banks in
deposits denominated in various currency units bearing fixed rate
of interest.
9. EARNINGS PER SHARE
The calculation of the basic earnings per share is based on the
profits attributable to ordinary shareholders divided by the
weighted average number of shares in issue during the period.
Calculation of basic and diluted profit per share for the period
ended 30 September 2019 is as follows:
asic earnings per share
Particulars 30 September 30 September
2019 2018
---------------------------------------------- --------------------------- ----------------------------
Profit attributable to shareholders 21,571,617 17,257,657
Weighted average numbers shares outstanding 190,130,008 190,130,008
Basic earnings per share (US$) 0.11 0.09
---------------------------------------------- --------------------------- ----------------------------
Diluted earnings per share
Particulars 30 September 30 September
2019 2018
---------------------------------------------- ------------- ------------------------
Profit attributable
to shareholders 21,571,617 17,257,657
Weighted average numbers shares outstanding 190,130,008 190,130,008
Diluted earnings per
share (US$) 0.11 0.09
---------------------------------------------- ------------- ------------------------
10. RELATED PARTY TRANSACTIONS
The related parties for each of the entities in the Group have
been summarised in the table below:
Nature of the relationship Related Party's Name
------------------------------ -------------------------------------------
I. Ultimate controlling Mr. Anil Aggarwal
party
II. Entities directly
or indirectly through EICR (Cyprus) Limited (Parent of
one or more intermediaries, iEnergizer Limited)
control, are controlled
by, or are under common
control with, the reported
enterprises
III. Key management personnel Mr. Anil Aggarwal (Ultimate Shareholder,
("KMP") and significant EICR Limited)
shareholders
Mr. Chris de Putron (Director, iEnergizer
Limited)
Mr. Mark De La Rue (Director, iEnergizer
Limited)
Mr. Marc Vassanelli (Director, iEnergizer
Limited)
Mr. Ashish Madan (Director, iEnergizer
Limited) w.e.f. 16 August 2018
Disclosure of transactions between the Group and related parties
and the outstanding balances is as under:
Transactions with KMP and relative of KMP
Particulars 30 September 30 September
2019 2018
-------------------------------- ------------- -------------
Transactions during the period
ended
Short term employee benefits
Remuneration paid to directors
Chris de Putron 6,249 6,559
Mark De La Rue 6,249 6,559
Marc Vassanelli 18,747 19,678
Balances at the end of
Total remuneration payable 109,385 71,678
-------------------------------- ------------- -------------
11. SEGMENT REPORTING
Management currently identifies the Group's two service lines
business process outsource and content delivery as operating
segments on the basis of operations. These operating segments are
monitored and operating and strategic decisions are made on the
basis of operating segment results.
The Chief Operating Decision Maker ("CODM") evaluates the
Group's performance and allocates resources based on an analysis of
various performance indicators by reportable segments. The Group's
reportable segments are as follows:
1. Business Process Outsource
2. Content delivery
3. Others
The measurement of each segment's revenues, expenses and assets
is consistent with the accounting policies that are used in
preparation of the Unaudited Condensed Consolidated Interim
Financial Statements. In addition, two minor operating segments,
for which the quantitative thresholds have not been met, are
currently combined below under 'Others'. Segment information can be
analysed as follows for the reporting periods under review:
30 September 2019
---------------------------------------
Business Content delivery Others Total
Process Outsource
--------------------------- ----------------------- ----------------------- ------------------ -------------------
Revenue from external
customers 59,433,379 35,747,517 - 95,180,896
Other income (including
realised foreign exchange
gain) 1,023,702 280,168 4,524 1,308,394
Segment revenue 60,457,081 36,027,685 4,524 96,489,290
--------------------------- ----------------------- ----------------------- ------------------ -------------------
Less:-
Cost of outsourced
Services 16,144,667 5,074,680 - 21,219,347
Employee benefit expense 20,188,248 19,392,563 - 39,580,811
Other expenses 3,339,716 2,726,155 500,227 6,566,098
--------------------------- ----------------------- ----------------------- ------------------ -------------------
Earning before interest,
tax, depreciation and
amortisation 20,784,450 8,834,288 (495,703) 29,123,034
--------------------------- ----------------------- ----------------------- ------------------ -------------------
Rent credit adjustment
as per IFRS 16 (281,860) (602,398) - (884,258)
----------------------- ----------------------- ------------------ -------------------
Earning before interest,
tax, depreciation and
amortisation
(before IFRS 16 rent
credit
adjustment ) 20,502,589 8,231,890 (495,703) 28,238,776
--------------------------- ----------------------- ----------------------- ------------------ -------------------
Unrealized Foreign
Exchange
gain/(loss) - (261,444) - (261,444)
Depreciation and
amortisation 959,531 1,103,786 - 2,063,317
Rent adjustment as per
IFRS 16 281,860 602,398 - 884,258
--------------------------- ----------------------- ----------------------- ------------------ -------------------
Segment operating profit 19,824,918 7,469,058 (495,703) 26,798,273
Other Income/expense :
Finance income 135,427 113,968 110,712 360,107
Finance costs (256,274) (1,119,634) (823,735) (2,199,643)
Profit before tax 19,704,071 6,463,392 (1,208,726) 24,958,737
--------------------------- ----------------------- ----------------------- ------------------ -------------------
Income tax expense 1,954,446 1,432,675 - 3,387,120
Profit after tax 17,749,626 5,030,717 (1,208,726) 21,571,617
--------------------------- ----------------------- ----------------------- ------------------ -------------------
Segment assets 48,324,778 156,564,586 17,175,505 222,064,869
Segment liabilities 20,317,643 48,416,000 17,931,212 86,664,855
Capital expenditure 4,682,531 3,625,169 - 8,307,700
--------------------------- ----------------------- ----------------------- ------------------ -------------------
30 September 2018
-----------------------------------
Business Content delivery Others Total
Process Outsource
---------------------------------- ---------------------- --------------------- ---------------- -----------------
Revenue from external customers 48,093,184 34,268,125 - 82,361,309
Other income (including
realized foreign exchange
gains) 409,617 471,386 850 881,853
Segment revenue 48,502,801 34,739,511 850 83,243,162
---------------------------------- ---------------------- --------------------- ---------------- -----------------
Less:-
Cost of outsourced Services 13,506,125 4,453,231 - 17,959,356
Employee benefit expense 15,973,780 19,310,627 - 35,284,407
Other expenses 1,749,646 3,515,201 470,577 5,735,424
---------------------------------- ---------------------- --------------------- ---------------- -----------------
Earning before interest,
tax, depreciation and
amortisation 17,273,250 7,460,452 (469,727) 24,263,975
---------------------------------- ---------------------- --------------------- ---------------- -----------------
Unrealized Foreign Exchange
gain/(loss) - 1,842,918 - 1,842,918
Depreciation and amortisation 605,108 2,075,260 - 2,680,368
Segment operating profit 16,668,142 7,228,110 (469,727) 23,426,525
---------------------------------- ---------------------- --------------------- ---------------- -----------------
Other Income/expense :
Finance income 138,957 126,948 22,303 288,208
Finance costs (16,061) (1,139,625) (1,604,916) (2,760,603)
Profit before tax 16,791,038 6,215,433 2,052,340 20,954,131
---------------------------------- ---------------------- --------------------- ---------------- -----------------
Income tax expense 2,526,676 1,169,797 - 3,696,473
Profit after tax 14,264,361 5,045,637 2,052,340) 17,257,658
---------------------------------- ---------------------- --------------------- ---------------- -----------------
Segment assets 43,431,117 75,456,382 86,626,765 205,514,264
Segment liabilities 15,147,228 46,029,831 22,606,489 83,783,548
Capital expenditure 1,874,708 339,414 - 2,214,122
---------------------------------- ---------------------- --------------------- ---------------- -----------------
Revenue from the following customer's amounts to more than 10%
of consolidated revenue during the period presented.
30 September 2019
Revenue from Segment Amount
-------------- ---------------------------- -----------------------------
Customer 1 Business Process Outsource 9,928,185
-------------- ---------------------------- -----------------------------
30 September 2018
Revenue from Segment Amount
-------------- ---------------------------- ---------------------
Customer 1 Business Process Outsource 9,763,189
-------------- ---------------------------- ---------------------
12. FINANCIAL ASSETS AND LIABILITIES
Fair value of carrying amounts of assets and liabilities
presented in the statement of financial position relates to the
following categories of assets and liabilities:
Financial assets 30 September 31 March 2019
2019
----------------------------------------- ------------------------- ---------------------
Non-current assets
Loans and receivables
Security deposits 530,183 507,498
Restricted cash 109,259 108,591
Fixed deposit - 1,065,892
Current assets
Loans and receivables
Trade receivables 34,623,099 36,675,342
Cash and cash equivalents 42,072,283 42,413,215
Restricted cash 5,055,927 4,747,604
Security deposits 9,126 11,985
Short term investments 2,758,929 1,803,959
Due from officers and employees 62,526 20,032
Other short term financial assets 7,190 47,891
Fair value through profit and loss:
Derivative financial instruments 9,487 426,984
85,238,009 87,828,993
----------------------------------------- ------------------------- ---------------------
Financial liabilities 30 September 31 March 2019
2019
----------------------------------------- ------------------------- ---------------------
Non-current liabilities
Financial liabilities measured at
amortized cost:
Long term borrowings 38,743,275 870,535
Current liabilities
Financial liabilities measured at
amortized cost:
Short term borrowings - 8,934
Trade payables 13,497,589 10,574,896
Current portion of long term borrowings 10,045,091 45,403,496
Other current liabilities 10,018,000 9,725,465
Fair value through profit and loss:
Derivative financial instruments - -
72,303,955 66,583,326
----------------------------------------- ------------------------- ---------------------
These non-current financial assets and liabilities, current
financial assets and liabilities have been recorded at their
respective carrying amounts as the management considers the fair
values to be not materially different from their carrying amounts
recognised in the statement of financial positions as these are
expected to realise within one year from the reporting dates.
Derivative financial instruments, recorded at fair value through
profit and loss, are recorded at their respective fair values on
the reporting dates.
13. FAIR VALUE HIERARCHY
Level 1 - Quoted prices (unadjusted) in active markets for
identical assets or liabilities.
Level 2 - Inputs other than quoted prices included within Level
1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are not
based on observable market data (unobservable inputs).
No financial assets/liabilities have been valued using level 1
and 3 fair value measurements.
The following table presents fair value hierarchy of assets and
liabilities measured at fair value on a recurring basis:
Fair value measurements
at reporting date
using
----------------------------- ---------------- ------------------------
30 September 2019 Total Level 2
----------------------------- ---------------- ------------------------
(Notional
Liabilities amount)
Derivative instruments
Forward contracts (currency
- US$/INR) 32,440,000 9,487
----------------------------- ---------------- ------------------------
Fair value measurements
at reporting date
using
----------------------------- ------------- ------------------------
31 March 2019 Total Level 2
----------------------------- ------------- ------------------------
(Notional
Assets amount)
Derivative instruments
Forward contracts (currency
- US$/INR) 18,700,000 426,984
----------------------------- ------------- ------------------------
14. COMMITMENT AND CONTINGENCIES
As at 30 September 2019 and 31 March 2019, the Group had a
capital commitment of US$ 257,684 and US$126,817 respectively for
acquisition of property, plant and equipment.
The contingent liability in respect of claims filed by erstwhile
employees against the group companies amounts to US$129,483 and
US$122,834 as on 30 September 2019 and 31 March 2019 respectively
and in respect of interest on VAT amounts to US$9,918 as on 30
September 2019 (US$10,060 as on 31 March 2019).
Guarantees: As at 30 September 2019 and 31 March 2019,
guarantees provided by banks on behalf of the group companies to
the revenue authorities and certain other agencies, amount to
approximately US$34,555 and US$35,049 respectively.
15. ESTIMATES
The preparation of interim financial statements require
management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported
amounts of assets and liabilities, income and expense. Actual
results may differ from these estimates.
In preparing these Unaudited Condensed Consolidated Interim
Financial Statements, the significant judgments made by the
management in applying the Group's accounting policies and the key
sources of estimation uncertainty were the same as those that
applied to the consolidated financial statements as at and for the
years ended 31 March 2019 and 2018.
16. FINANCIAL RISK MANAGEMENT
The Group's financial risk management objectives and policies
are consistent with those disclosed in the consolidated financial
statements as at and for the years ended 31 March 2019 and
2018.
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 GMMZMLGLGLZG
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