29 January 2016
Early Equity Plc
("Early Equity" or "the Company")
AUDITED RESULTS FOR THE YEAR ENDING 31 AUGUST 2015
I am pleased to present the financial results for Early Equity Plc for the year ended 31 August 2015. The total comprehensive loss for the year was £123,814 (2014 - £102,017 loss). The loss per share was 0.03p (2014 – 0.04p). The loss before tax of £123,814 (2014 - £102,017 loss) largely reflects the costs of maintaining a public listing. In the past year, the Directors have succeeded in reducing operating expenses to a minimum.
On 16 February 2015, the Company completed an equity subscription to raise £250,000 (gross of expenses) though the issue of 250,000,000 new ordinary shares at a price of 0.1 pence per share. The funds raised will be used by the Company for additional working capital and to evaluate potential investments.
On 16 July 2015, the Company invested £25,000 in Devilfish Poker Limited ("Devilfish"), an online gaming platform that re-launched following completion of a crowd-funding. We have also agreed to work with Devilfish as a strategic partner as Devilfish prepares to expand into international markets, particularly in the Asia Pacific Region. As a result of the investment and the terms of the strategic partnership agreement, the Company holds 277,776 ordinary shares in Devilfish, representing 5% of the issued share capital of Devilfish. Devilfish Poker Limited was founded in 2005 and it is a niche brand in the world of online poker. Devilfish facilitates ‘peer to peer’ poker play through its own online poker room and generates revenue by charging a small commission on every hand played, as well as entry fees into specific poker tournaments. In December 2015, the system went live for casino and slot machines, taking real money and facilitating real bets. Devilfish are now concentrating on getting the Poker live as soon as the second licence is granted.
At year end, the value of our investment portfolio stood at £172,637 (2014 - £156,050). The Company continue to hold shares in Universal Outdoor Group Plc (previously known as Tangibal Group Plc) (quoted on the Frankfurt Börse), Alpha Prospects Plc and BWA Group Plc (quoted on ISDX and temporarily suspended). The Directors will continue to seek opportunities to realise these investments.
POST-BALANCE SHEET EVENTS
On the 1 December 2015, the Company acquired a 32.14% stake in Yicom Global Sdn. Bhd. ("Yicom”) satisfied by the issue of 100,000,000 new ordinary shares. Yicom is the sole importer and patent holder of a series of healthcare products from various countries and in particular China. Yicom has a Sole Distributorship Agreement with Early Infinity Holdings Sdn. Bhd. a direct sales company holding licences to operate a multi-level marketing business in Malaysia. Yicom started trading in February of last year and the rate of turnover has increased each month as new distributors have been recruited. Early Infinity Holding Sdn Bhd currently have 700 Agents selling their products in Asia and the Directors of Yicom believe there is scope to increase this number to 10,000 over the next three years as they expand their business in the Malaysian market and expand into China and Thailand.
On 15 December 2015, the Company completed a further equity subscription to raise £157,500 (gross of expenses), through the issue of 35,000,000 new ordinary shares of 0.1 pence each at a placing price of 0.45 pence per new ordinary share.
On behalf of the Board, I would like to take this opportunity to thank shareholders and professional advisers for their continued support of the Company.
Chua Siew Lian - Executive Director
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST, 2015
TURNOVER - -
ADMINISTRATIVE EXPENSES (114,945) (97,501)
OTHER OPERATING EXPENSES (8,413) (4,164)
FINANCE COSTS (456) (352)
(LOSS) BEFORE TAX (123,814) (102,017)
INCOME TAX - -
(LOSS) FOR THE YEAR £(123,814) £(102,017)
OTHER COMPREHENSIVE INCOME
Reclassification of fair value gain on disposal - -
of available-for-sale financial assets
TOTAL COMPREHENSIVE LOSS FOR THE YEAR £(123,814) £(102,017)
BASIC AND DILUTED LOSS PER SHARE (PENCE) (0.03) (0.04)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 AUGUST, 2015
Available-for-sale financial assets 172,637 156,050
Trade and other receivables 6,682 8,877
Cash and cash equivalents 39,499 9,399
Trade and other payables (10,105) (91,799)
NET CURRENT (LIABILITIES)/ASSETS 36,076 (73,523)
NET ASSETS £208,713 £82,527
Share capital 674,623 424,623
Share premium 211,090 211,090
Fair value reserve 49,031 49,031
Accumulated losses (726,031) (602,217)
SHAREHOLDERS’ FUNDS £208,713 £82,527
This financial information has been extracted from the audited financial statements of the Group for the year ended 31 August 2015. The financial statements are prepared in accordance with the International Financial Reporting Standards (IFRS). A copy of the Company's financial statements for the year ended 31 August 2015 will be posted to shareholders and will be delivered to the Registrar of Companies.
The Directors do not propose to pay a dividend for the year.
The Directors of the Company accept responsibility for this announcement.
Early Equity Plc
Tel: +44 (0)7830 182501
ISDX CORPORATE ADVISER:
Alexander David Securities Limited
David Scott - Corporate Finance / James Dewhurst - Institutional Sales
Telephone: +44 (0) 20 7448 9820
49 Queen Victoria Street, London EC4N 4SA