Quetzal Capital Plc - Interim Results to 31 December 2021 PR Newswire

Quetzal Capital Plc

(“Quetzal Capital” or the "Company")

Unaudited Financial Results for the Six Months to 31st December 2021

Director’s Statement

Quetzal Capital Plc (the “Company”) (AQSE: QTZ) is pleased to present its unaudited half-year results for the six-month period ended 31 December 2021.

Highlights

-             £1.5million investment into, and a call option to acquire, TAP Global Limited, a leading regulated fully integrated Crypto-Fiat exchange service provider with an associated neo banking platform

  • Net assets at year-end of over £3million

-             Appointment of Tony Quirke, an industry expert in the payments and e-money sectors

Business review

The results for this period reflect a period of target review and ultimately the identification of TAP Global in which the Company has made a significant investment. The Company subscribed for £1.5 million of secured convertible loan notes (“CLNs”) in TAP Global and under the terms of the CLNs, the Company has the right to subscribe for additional CLNs up to a further £500,000 CLNs of £1 each at any point before 31 May 2022.  Should the CLNs convert, they will do so at a 50% discount to the valuation of TAP Global at a conversion event which would involve the acquisition of the entire issued share capital of TAP Global by the Company.  TAP Global also signed a call option in favour of the Company that gives the Company the right to acquire 100% of the issued share capital of TAP Global, subject to the terms of a Sale and Purchase Agreement being agreed between the parties. The Board is very excited about the progress TAP Global has made on the TAP platform in the past few months and is monitoring how the addition of several enhancements, including the roll out of corporate accounts and the incorporation of 10 further token assets, will impact the usage of the platform going forward. The Board is in constant review of TAP’s progress, generally, in order to be in a position to make an informed decision on whether to trigger the acquisition option, which would lead to a Reverse Takeover of TAP Global and its subsidiaries. 

The financial results for the six months ended 31 December 2021 show a loss of £104,689 compared to a loss for the same period in 2020 of £16,914. The net assets at 31 December 2021 were £3,055,345 (2020: (£57,346)).

Post balance sheet events

On 17 January 2022, the Company announced the appointment of Anthony (“Tony”) Quirke as Non-executive Director of the Company. Tony has a wealth of knowledge and experience in the payments and e-money sectors, as well as experience of acquisitions on public markets, and will be an invaluable member of the Company as we work to maximise the value of our investments for shareholders going forward.

On behalf of the Board

Fungai Ndoro

Executive Director

The Directors of Quetzal Capital Plc accept responsibility for the content of this announcement.

Quetzal Capital Plc
Fungai Ndoro: +44 (0) 203 813 0175

AQSE Growth Market Corporate Adviser
Peterhouse Capital Limited

Guy Miller / Mark Anwyl
Tel: +44 (0) 207 469 0930

Quetzal Capital Plc

Interim Statement of Comprehensive Income

Period Ended 31 December 2021

6 months to 31 Dec 2021
Unaudited
Year ended 30 June 2021
Audited
6 months to 31 Dec 2020
Unaudited
Note £ £ £
Administrative expenses (104,689) (68,803) (16,914)
Operating profit / (loss) (104,689) (68,803) (16,914)
Interest payable and similar expenses - - -
Profit / (loss) before taxation (104,689) (68,804) (16,914)
Tax on profit / (loss) - (3,112) -
Profit / (loss) for the financial period and total comprehensive income (104,689) (71,915) (16,914)

All the activities of the Company are from continuing operations and investments.

The notes form part of these interim financial statements.

Quetzal Capital Plc

Interim Statement of Financial Position

Period Ended 31 December 2021

6 months to 31 Dec 2021
Unaudited
Year ended 30 June 2021
Audited
6 months to 31 Dec 2020
Unaudited
Note £ £ £
Fixed assets
Investments 1 2,279 2,279 2,187
2,279 2,279 2,187
Current assets
Debtors 152,200 71,628 4,458
Financial assets 1,935,371 267,930 -
Cash and cash equivalents 987,981 2,841,679
Total current assets 3,075,552 3,181,237 4,458
Creditors: amounts falling due within one year 19,374 20,370 63,991

Net current assets
3,056,178 3,160,867 (59,533)
Total assets less current liabilities 3,058,457 3,163,146 (57,346)
Provisions (3,112) (3,112) -
Net assets 3,055,345 3,160,034 (57,346)
Capital and reserves
Called up share capital 1,701,243 1,701,243 1,552,577
Share premium 4,687,681 4,687,681 1,573,086
Option & warrant reserve 9,120 9,120 -
Profit & loss account (3,342,699) (3,238,010) (3,183,009)
Shareholders’ funds / (deficit) 3,055,345 3,160,034 (57,346)

The interim financial statements were approved and authorised for issue by the Board and were signed on its behalf by:

Fungai Ndoro

Director

The notes form part of these interim financial statements.

Quetzal Capital Plc

Interim Statement of Changes in Equity

Period Ended 31 December 2021

Called up Share Capital Share Premium Other Reserves Profit & Loss Account Total
£ £ £ £ £
As at 1 July 2021 1,701,243 4,687,681 9,120 (3,238,010) 3,160,034
Total comprehensive profit for the period - - - (104,689) (104,689)
Issue of shares - - - - -
Balance at 31 December 2021 1,701,243 4,687,681 9,120 (3,342,699) 3,055,345

   

Called up Share Capital Share Premium Other Reserves Profit & Loss Account Total
£ £ £ £ £
As at 1 July 2020 1,552,202 1,572,336 - (3,166,095) (41,557)
Total comprehensive profit for the year - - - (71,915) (71,915)
Issue of shares 149,041 3,115,345 - - 3,264,386
Option & warrant reserve - - 9,120 - 9,120
Balance at 30 June 2021 1,701,243 4,687,681 9,120 (3,238,010) 3,160,034

   

Called up Share Capital Share Premium Profit & Loss Account Total
£ £ £ £
As at 1 July 2020 1,552,202 1,572,336 (3,166,095) (41,557)
Total comprehensive profit for the period - - (16,914) (16,914)
Issue of shares 375 750 - 1,125
Balance at 31 December 2020 1,552,577 1,573,086 (3,183,009) (57,346)

The following describes the nature and purpose of each reserve within owners’ equity:

Reserve Description and purpose

Called Up Share Capital

This represents the nominal value of shares issued.
Share Premium Amount subscribed for share capital in excess of nominal value.
Profit & Loss Account Cumulative net gains and losses recognised in the statement of comprehensive income.

The notes form part of these interim financial statements.

Quetzal Capital Plc

Interim Statement of Cash Flows

Period Ended 31 December 2021

Note 31 Dec 2021
£
30 June 2021
£
31 Dec 2020
£
Cash flows from operating activities
Profit / (loss) for the financial period (104,689) (71,915) (16,914)
Adjustments for:
Fair value adjustment of listed shares 4,361 (16,472) -
Interest payable and similar expenses - - -
Other operating cash flow adjustment - 9,120 -
Changes in:
Trade and other debtors (80,572) (64,133) 3,037
Trade and other creditors (996) (27,757) (22,248)
Cash generated from operations (181,896) (171,157) (36,125)
Interest paid - - -
Net cash used in operating activities (181,896) (171,157) (36,125)
Cash flows from financing activities
Purchase of listed investment (1,671,802) (251,550) -
Loans received - - 35,000
Share issue - 3,470,124 1,125
Share issue expenses paid - (205,738) -
Net cash used in financing activities (1,671,802) 3,012,836 36,125
Increase / (Decrease) in cash and cash equivalents (1,853,698) 2,841,679 -
Cash and cash equivalents at beginning of the period 2,841,679 - -
Cash and cash equivalents at the end of the period 987,981 2,841,679 -

The notes form part of these interim financial statements.

Quetzal Capital Plc

Notes to the Interim Financial Statements

Period Ended 31 December 2021

Financial information

The financial information set out in these interim financial statements does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.  The Company’s statutory financial statements for the year ended 30 June 2021 have been filed with the Registrar of Companies.  The auditor’s report on those financial statements was unqualified and did not contain a statement under Section 498(2) of the Companies Act 2006.

These interim results have not been audited nor have they been reviewed by the Company’s auditors under ISRE 2410 of the Auditing Practices Board.

These interim financial statements are for the six month period ended 31 December 2021.  They have been prepared following the recognition and measurement principles of FRS 102.  They do not include all of the information required for full annual financial statements and should be read in conjunction with the financial statements for the period ended 30 June 2021. 

Going concern

The directors, having made appropriate enquiries, consider that adequate resources exist and continued support of the directors is forthcoming for the Company to continue in operational existence for the foreseeable future, therefore, it is appropriate to adopt the going concern basis in preparing these interim financial statements for the period ended 31 December 2021.

1.         Investments

Shares in group undertakings Other investments other than loans Total
£ £ £
Cost
As at 1 July 2021 - 2,279 2,279
Additions - - -
Revaluations - - -
Balance at 31 December 2021 - 2,279 2,279

   

Shares in group undertakings Other investments other than loans Total
Carrying amount £ £ £
As at 1 July 2021 - 2,279 2,279
Balance at 31 December 2021 - 2,279 2,279

2.         Earnings per share

The calculation of earnings per share is based on the loss attributable to ordinary shareholders divided by the weighted average number of ordinary shares in issue being 103,203,234 during the period.  This results in a loss per share of 0.10p (2020: 0.08p)

REGULATORY ANNOUNCEMENT ENDS