Early Equity Plc - Interim Resultst PR Newswire

29 May 2020

EARLY EQUITY PLC
("Early Equity" or the "Company")

Interim Results

Executive Director’s Statement

I am pleased to present the unaudited interim results for the Company for the  six month period ended 29th February 2020.

Results and Review of Business

The loss for the period was GBP£344,474 (2019: GBP68,045) representing a loss per share of 0.038p (2019: 0.01p). The losses are significantly higher than the previous year as they reflect the costs associated with the subsidiary business (Meihome (M) Sdn Bhd (‘Meihome’) and the general running costs of maintaining a public limited company. It is also reflective of our transition from an investment company to an operating company.

Although the Group generated a loss in the year it has a net asset position of £1,437,516 (2019 - £1,624,475)

During the period, the Company raised a total of £510,074 by way of subscription.

Post Balance Sheet Events

There have been no material events, transactions or developments within the post balance sheet period.

Outlook

Further to our audited figures up to 31st August 2019 which reported a downturn in sales by Yicom Global Sdn Bhd (‘Yicom’) which had a detrimental effect on the balance sheet of Yicom, coupled with the Covid-19 pandemic, sales have continued to decline.

On 1 September 2019, the Company entered into a relationship agreement with Yicom and the board are working actively with them to integrate new product lines and routes to market which we anticipate will re-energise sales.

On the 22nd February 2019 the Company acquired a controlling interest in Meihome, an e-commerce platform.  Early Equity has acquired 60% stake thus resulting in Meihome becoming a subsidiary of the Company. Meihome is an e-commerce marketplace that carries products and/or services of third-party merchants.

On 1 September 2019, the Company entered into a relationship agreement with Meihome and have been working with them to develop the e-commerce platform to support merchant upload of their own products (versus Meihome staff administering changes under its original format). For the purposes of valuing this subsidiary, the figure stated in our audited figures up to 31st August 2019 has been used. The launch of the new platform coincided with the Covid-19 pandemic spread across Asia (the region was affected as early as January 2020) and consequently the number of forecast merchants and sales have not materialised. The Company are working to implement a new range of products that will reinvigorate the business.

As detailed above, the current world-wide economic effect of Covid-19 has led to a downturn in the revenues and activities of the Group. Furthermore, the Company has experienced delays in gathering the required information for the application to the for a Standard Listing. This has created some uncertainty in the business, and the short to medium term outlook is difficult to assess. Consequently, the Company has decided to suspend the application to the Standard Listing until the financial outlook is clearer, and working conditions have returned to some normality. The Board will review this position when the economic conditions and visibility improve, and update the market accordingly.

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 INTERIM STATEMENT OF COMPREHENSIVE INCOME

FOR SIX MONTHS TO 29 FEBRUARY 2020


                                                 6 months to      6 months to
                                               29 February 2020 28 February 2019

CONTINUING OPERATIONS                                GBP              GBP

TURNOVER/DIVIDEND INCOME                            33,805           38,561

Less Cost of Sales:

Opening Inventory                                   25,665

Purchases                                           22,144

Closing Inventory                                  (26,634)

Gross Profit                                        10,631

OTHER INCOME

ADMINISTRATIVE EXPENSES                           (277,445)        (110,836)

OTHER OPERATING (EXPENSES) GAIN                    (88,534)         (5,639)

FINANCE COSTS                                       (775)           (1,409)

(LOSS) BEFORE TAX                                 (344,274)         (68,045)

INCOME TAX                                           200               -

(LOSS) FOR THE YEAR / PERIOD                      (344,474)         (68,045)

LOSS ATTRIBUTABLE TO:

Owners of the parent                               324,604             -

Non-controlling interest                            19,870

TOTAL COMPREHENSIVE LOSS FOR THE YEAR / PERIOD    (344,474)         (68,045)

BASIC AND DILUTED LOSS PER SHARE                   (0.038p)         (0.01p)

                                                 6 months to      6 months to
CONSOLIDATED STATEMENT OF FINANCIAL POSITION   29 February 2020 28 February 2019
AS AT 28 FEBRUARY 2019

                                                     GBP              GBP

NON-CURRENT ASSETS

Goodwill                                           191,818

Fixed Assets                                        40,873

INVESTMENTS

Available-for-sale financial assets                260,794         1,257,406

Investment in Yicom Global Sdn Bhd                 416,237

                                                   909,722

CURRENT ASSETS

Inventory                                           24,634

Deposit and prepayment                              5,217

Trade and other receivables                        600,134           47,460

Cash and cash equivalents                           69,529          276,970

Other Receivables                                     -              42,796

                                                   699,514          367,226

CURRENT LIABILITIES

Trade and other payables                            99,857          (24,717)

Accrued Expenses                                    59,056           21,678

Deferred Tax Liabilities                            3,175            3,756

Provision for Taxation                              9,632            (560)

                                                   171,720           (157)

NET CURRENT ASSETS / (LIABILITIES)                 527,794          367,069

NET ASSETS                                        1,437,516        1,624,475

REPRESENTING:-

Share capital                                      897,959         1,159,623

Share premium                                     2,090,191     1,496,090

                                                  2,988,150     2,655,713

Non-controlling interest                            26,965           59,284

Loss for the year                                 (344,474)

Fair value reserve                                 334,790          142,983

Exchange reserve                                     (95)

Accumulated losses                               (1,567,820)      (1,233,505)

SHAREHOLDERS FUNDS                                1,437,516        1,624,475



The interim financial information for the six months ended 29 February 2020 is neither audited nor reviewed, but has been prepared in accordance with the accounting policies set out in the Company's annual report and accounts for the year ended 31 August 2019.

The Directors of the Company accept responsibility for the announcement.

--ENDS-

Enquiries:

Early Equity Plc
Tel:  +44 (0)7830 182501
Greg Collier

AQSE GROWTH MARKET CORPORATE ADVISER:

Alexander David Securities Limited
David Scott - Corporate Finance
James Dewhurst - Corporate Broking
Telephone: +44 (0) 20 7448 9820

http://www.ad-securities.com