RNS Number:9898Q
GMO Limited
09 February 2007
Press Release 9 February 2007
GMO Limited
("GMO" or the "Group")
Unaudited Final Results
GMO Limited (AIM:GMO), a leading provider of wireless value-added services
('WVAS') listed on AIM today announces its maiden unaudited Final Results, for
the financial year ended 31st December 2006.
Highlights
* Raised #5.0 million during the IPO
* Successfully completed the 20% acquisition of WCI for a consideration of
USD23.8 million financed in part by the issue of USD20.235 million
Murabahah Loan Notes
* Achieved EBITDA of USD0.6 million (Pro forma: USD2.54 million)
* Robust earnings per share of 2.47 US cents (Pro forma: 2.86 US cents)
Commenting on the results, Tan Sri Datuk Dr Omar Rahman, Chairman of GMO
Limited, said: "As demonstrated since joining AIM in September 2006, GMO has
strong fundamentals in place and will continue to grow in tandem with the
exponential growth of the telecommunications sector in China. GMO will continue
to grow utilizing a combination of organic and acquisitive growth as evidenced
through the recent acquisition of WCI."
Eugene Goh, Chief Executive Officer of GMO Limited, added: "We are always
confident of GMO's growth prospects in China. We are delighted that since the
half-year end, the Company has completed a 20% equity acquisition of WCI. WCI
has exceeded our expectations of its financial performance and we look forward
to benefiting from its revenue and cost synergies as well as the growth
opportunity for the Group to become a major media WVAS player in China. The
success of the complementary acquisition reinforces our strong belief and
confidence in the future development of GMO."
For further information:
GMO Limited
Eugene Goh, Chief Executive Officer Tel: + (0)7786 787 005
eugene@gmoglobal.com www.gmoglobal.com
Corporate Synergy Plc
John Wakefield / Mike Coe, Corporate Finance Tel: +44 (0) 117 933 0020
Jwakefield@corporatesynergy.co.uk www.corporatesynergy.co.uk
Media enquiries:
Abchurch
Chris Lane/ Georgina Bonham Tel: +44 (0) 20 7398 7700
georgina.bonham@abchurch-group.com www.abchurch-group.com
Chairman's Statement
Overview
2006 has been a successful year for GMO. On 6 September 2006, GMO successfully
made its maiden debut on the AIM of the London Stock Exchange, raising gross
proceeds of #5 million. Not resting on its laurels, GMO has made significant
progress by completing the acquisition of a 20% equity in WCI, the exclusive
service and technology provider for ColorComm Software Technology Group ("
ColorComm"), a market leader in the WVAS and interactive media services in
China.
For the financial year ended 31 December 2006, GMO achieved an EBITDA of USD0.6
million (Pro forma: USD2.54 million) on the back of revenue of USD2.89 million
(Pro forma: USD4.92 million).
Basic earning per share ('EPS') was 2.47 US cents (Pro forma: 2.86 US cents).
Operational Review
The operating condition within the WVAS industry was difficult especially in the
second half of 2006 due to the full implementation of the new regulations
imposed by the Ministry of Information Industry of China.
Despite the regulatory changes above, GMO performed satisfactorily.
Current trading and prospects
The new regulatory requirements imposed on the WVAS industry has resulted in the
industry undergoing a challenging environment. Nevertheless, GMO will continue
to expand its range of products and services to increase its revenue base and to
improve its profitability margins.
GMO has penetrated the interactive media industry in China via its recent
acquisition of a 20% equity interest in WCI. WCI achieved audited EBITDA of
approximately USD11.9 million in respect of the two (2) financial periods of six
months ended 31 December 2005 and 30 June 2006.
It is expected that the acquisition of WCI will increase the product and
services offering of GMO and create synergistic benefits.
CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED)
PERIOD FROM PERIOD FROM PERIOD FROM
20.6.2006 1.7.2006 20.6.2006
TO 30.6.2006 TO 31.12.06 TO 31.12.2006
Notes USD USD USD
Revenue - 2,888,385 2,888,385
Cost of sales - (1,917,705) (1,917,705)
Gross Profit - 970,680 970,680
Administrative
expenses (5,319) (363,853) (369,172)
EBITDA* (5,319) 606,827 601,508
Other income - 108,218 108,218
Amortisation - (333,909) (333,909)
Profit before
taxation (5,319) 381,136 375,817
Excess of Group's
interest in the
net fair value of
acquiree's
identifiable
assets,
liabilities and
contingent
liabilities
over cost - 475,057 475,057
Taxation - - -
Profit after
taxation (5,319) 856,193 850,874
Minority interest - (184,089) (184,089)
(Loss) / Profit
for the period (5,319) 672,104 666,785
Earnings per share
attributable to
equity holders of
the parent
- Basic (cent) 5 NA 2.48 2.47
- Diluted (cent) NA NA NA
*EBITDA - denotes "Earnings Before Interest, Taxation, Depreciation and
Amortisation."
This is the unaudited final report on the consolidated results for the financial
period from 20 June 2006 (Date of Incorporation) to 31 December 2006 announced
by the Company in compliance with AIM requirements. As this is the first
financial period, there are no comparative figures for the preceding year.
The unaudited consolidated income statement should be read in conjunction with
the companying explanatory notes attached to the interim financial statements.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
AT
31 DECEMBER 2006
USD
Non - current assets
Intellectual property 12,643,328
Current assets
Trade and other receivables 3,708,368
Deposit for acquisition 5,000,000
Deferred expenses 190,068
Cash and bank balances 6,322,610
15,221,046
Current liabilities
Trade payables 1,851,464
Accruals and provisions 2,594,541
Amount owing to related parties 4,019,193
8,465,198
Net current liabilities 6,755,848
19,399,176
Financed by:
Capital and reserves
Equity attributable to equity holders of the parent
Share capital 7,541,655
Share premium 9,911,506
Foreign exchange reserve 72,283
Retained profits 666,785
18,192,229
Minority Interest 1,206,947
Total equity 19,399,176
Non-current liability -
19,399,176
Net assets per share attributable to ordinary equity
holders of the parent (cent) 45.37
This is the unaudited final report on the consolidated results for the financial
period from 20 June 2006 (Date of Incorporation) to 31 December 2006 announced
by the Company in compliance with AIM requirements. As this is the first
financial period, there are no comparative figures for the preceding year.
The unaudited consolidated balance sheet should be read in conjunction with the
companying explanatory notes attached to the interim financial statements.
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (UNAUDITED)
PERIOD FROM
20.6.2006
TO 31.12.2006
USD
Cash flows from operating activities
Profit before taxation 850,875
Adjustments for non-cash item:
Amortisation of intellectual property 333,909
Excess of Group's interest in the net fair value of acquiree's
Identifiable assets, liabilities and contingent liabilities
over cost (475,057)
Interest income (36,599)
Other non-cash items (71,619)
Profit before working capital changes 601,509
Changes in working capital:
Increase in trade and other receivables (1,681,441)
Decrease in deferred expenses 180,415
Increase in trade payables and accruals 2,081,958
Increase in amount owing by related parties 1,388,571
Cash generated from operations 2,571,012
Net cash generated from operating activities 2,571,012
Cash flows from investing activities
Acquisition of subsidiary 629,457
Acquisition of associate (5,000,000)
Interest received 36,559
Net cash used in investing activities (4,333,984)
Cash flows from financing activities
Proceeds from issuance of shares 9,506,839
Listing expenses (1,565,199)
Net cash generated from financing activities 7,941,640
Net increase in cash and cash equivalents 6,178,668
Cash and cash equivalents at 20 June 2006 -
Effect of foreign exchange rate changes 143,942
Cash and cash equivalents at end of period 6,322,610
This is the unaudited final report on the consolidated results for the financial
period from 20 June 2006 (Date of Incorporation) to 31 December 2006 announced
by the Company in compliance with AIM requirements. As this is the first
financial period, there are no comparative figures for the preceding year.
The unaudited consolidated cash flow should be read in conjunction with the
companying explanatory notes attached to the interim financial statements.
NOTES TO THE INTERIM FINANCIAL REPORT
1. Basis of Preparation
The preliminary final financial statements are unaudited and have been presented
in accordance to International Financial Reporting Standards and the
requirements of AIM rules for the financial period from the date of
incorporation to 31 December 2006.
2. Accounting Convention
The financial statements are prepared under the historical cost convention and
on the going concern basis.
3. Basis of Consolidation
The consolidated financial statements include the financial statement of the
Company and its subsidiary as at the balance sheet date.
A subsidiary is defined as a company in which the Group has the power, directly
or indirectly, to exercise control over the financial and operating policies so
as to obtain benefits from its activities.
All subsidiaries are consolidated using the acquisition method of accounting.
Under the acquisition method of accounting, the results of subsidiaries acquired
or disposed of are included from the date of acquisition or up to the date of
disposal. At the date of acquisition, the fair values of the subsidiaries' net
assets are determined and these values are reflected in the consolidated
financial statements.
Intra-group transactions, balances and unrealized gains on transactions are
eliminated; unrealized losses are also eliminated unless cost cannot be
recovered. Where necessary, adjustments are made to the financial statements of
subsidiaries to ensure consistency of accounting policies with those of the
Group.
Minority interest is measured at the minorities' share of the fair values of the
identifiable assets and liabilities of the acquired.
4. Review of Performance
For the financial year ended 31 December 2006, GMOL registered revenue of
approximately USD2.89 million and achieved an EBITDA of approximately USD0.6
million.
GMOL was principally set up as an investment holding company to facilitate the
listing of GMO Global and its subsidiaries ("GMO Global") on AIM. The
acquisition of GMO Global by GMOL was completed on 18.8.2006. Therefore,
approximately 4.5 months of GMO Global financial results were included in the
consolidated results of GMOL for the financial year ended 31 December 2006.
The proforma results of GMOL for the financial year ended 31 December 2006,
assuming the acquisition of GMO Global had been completed on 1 January 2006, are
as follows:-
Proforma Proforma Proforma
First Half Year Second Half Year Financial Year
Ended Ended Ended
30.6.2006 31.12.2006 31.12.2006
USD USD USD
Revenue 1,621,135 3,294,177 4,915,312
Cost of sales (10,066) (1,986,873) (1,996,939)
Gross Profit 1,611,069 1,307,304 2,918,373
Administrative
expenses (11,709) (368,864) (380,573)
EBITDA* 1,599,360 938,440 2,537,800
Other income - 108,218 108,218
Amortisation (453,336) (453,336) (906,672)
Profit before taxation 1,146,024 593,322 1,739,346
Taxation - - -
Profit after taxation 1,146,024 593,322 1,739,346
Minority interest (342,814) (249,755) (592,569)
Profit for the period 803,210 343,567 1,146,777
Earnings per share attributable
to equity holders of the parent
- Basic (cent) # 2.68 0.86 2.86
- Diluted (cent) NA NA NA
# Basic EPS has been calculated based on the net profit attributable to
ordinary shareholders of GMO Limited divided by the number of ordinary shares of
10 pence each in issue for the year of 40,100,000.
5. Earnings per share
Basic earnings per share is calculated by dividing the net profit for the period
by the weighted average number of ordinary shares in issue during the financial
period.
Period Period
from from
1.7.2006 to 20.6.2006 to
31.12.2006 31.12.2006
Net profit for the period (USD) 672,104 666,785
Weighted average number of ordinary shares in
Issue 27,050,000 27,050,000
Basic earnings per share (cent) 2.48 2.47
6. Material Events during the Financial Year Ended 31 December 2006
Acquisition of GMO Global Limited ("GMO") and Share Exchange Agreement
On 18 August 2006, pursuant to the Share Exchange Agreement ("SEA"), GMOL
acquired the entire issued and paid-up share capital of GMO Global Limited ("GMO
"), a company incorporated in the British Virgin Islands, from the JV Partners
namely Green Packet Berhad ("GPB"), mTouche Technology Berhad ("MTB") and OSK
Ventures International Berhad ("OSKVI") for a total consideration of #5,069,830
("Consideration") to be satisfied by way of a share swap which will entail the
issuance of 2,999,900 ordinary shares of #1.00 each in GMOL ("GMOL Shares") at
an issue price of #1.69 per GMOL Share, to be credited as fully paid-up.
Subsequent to the SEA, the JV Partners acquired the remaining 100 GMOL Shares,
at par from the existing shareholders, namely Monitor Holdings Limited and
Primary Holdings Limited, in the proportion of their respective shareholdings in
GMOL.
On the same date, GMOL implemented a share split on the basis of every one (1)
ordinary share of #1.00 each in GMOL into ten (10) new shares of 10 pence each
("New GMOL Shares").
Listing of GMO Limited on Alternative Investment Market ("AIM") of the London
Stock Exchange
On 6 September 2006, GMOL undertook a public issue of 10,000,000 New GMOL
Shares, representing approximately 25% of the enlarged issued and paid-up share
capital of GMOL, at an indicative issue price of 50 pence each. The public issue
raised a total gross proceeds amounted to #5,000,000, and the issued and paid-up
share capital of GMOL increase from #3,000,000 comprising 30,000,000 New GMOL
Shares to #4,000,000 comprising 40,000,000 New GMOL Shares.
On the same date, the entire issued and paid-up share capital of GMO Limited
("GMOL") of #4,000,000 comprising 40,000,000 ordinary shares of 10 pence each
was admitted to the AIM of the London Stock Exchange.
Proposed conditional acquisition of 20% equity interest in Wisdom Choice
Investments Ltd ("WCI")
On 29 September 2006, GMOL entered into a Shares Sale Agreement ("SSA") with WCI
and conditionally agreed to acquire an interest in 20 per cent of WCI for a
total consideration of up to USD16.15 million to be satisfied by a mixture of
cash and debt. WCI is the exclusive service and technology provider of
ColorComm, a market leader in wireless value-added services and interactive TV
communication in China.
In addition, GMOL has been granted a call option to acquire the remaining 80 per
cent shares in WCI. The exercise period expires on 15 February 2007 and payment
on exercise is dependent on WCI having achieved an audited EBITDA of USD9.5m for
the year ending 31 December 2006.
Proposed acquisition of 20% equity interest in Wisdom Choice Investments Ltd
("WCI")
On 22 January 2007, the Group announced that all the conditions precedent in the
SSA entered into between GMOL and WCI on 29 September 2006 has been fulfilled.
The remaining consideration (net of the USD5m deposit already paid) has been
funded via internally generated funds and the issuance of Murabahah loan notes
arranged in accordance with Islamic principles.
The subscribers of the Murabahah loan notes comprise, amongst others, Green
Packet Berhad, mTouche Technology Berhad, OSK Ventures International Berhad, ,
and Eugene Goh, Chief Executive Officer. The loan notes will be redeemed by GMOL
two years from the date of issue and may be redeemed earlier at GMOL's option.
Proposed extension of Call Option
On 8 February 2007, the Company and the Vendors of WCI have mutually agreed to
extend the exercise date of the call option from 15 February 2007 to 31 March
2007.
- Ends -
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR ILFSTFAITIID
Gmo (LSE:GMO)
Historical Stock Chart
Von Mai 2024 bis Jun 2024
Gmo (LSE:GMO)
Historical Stock Chart
Von Jun 2023 bis Jun 2024
