KR1 plc - Half-year Report PR Newswire

27 September 2018

KR1 Plc

(“KR1” or the “Company”)

Interim Report for the Half Year Ended 30 June 2018

The Company is pleased to present its interim report for the half year ended 30 June 2018.

Chief Executive Officer’s statement

Since its invention in 2008, Bitcoin has lived through numerous market cycles. The longest downtrend lasted 415 days between 2013 and 2015, only then beginning its gradual rise to a crescendo in late 2017. During those two long nervous years, Bitcoin lost 83% of its previous value and the Bitcoin obituaries came thick and fast from the mainstream media. Yet the network statistics told a different story, Bitcoin the network was gaining wider adoption on all metrics and eventually the market caught up.

We’re currently in another downtrend, experiencing the same nervousness in the market as we did in the previous cycle, but instead of USD197 per Bitcoin the world watches on and winces at the current price of USD6,400.  The market will undoubtedly consolidate at a ‘higher low’ in the near future as we will enter a new part of the adoption cycle. The difference this time is that we are seeing major moves into the space by some of the world’s largest financial institutions and because crypto assets are influenced by events and narratives, we see no reason why the market won’t catch up again as these institutions will allow greater access and spark a new wave of adoption.

The current trend has, as expected affected our portfolio. We’ve seen a loss due to the decrease in value of our cash equivalents Bitcoin and Ether. When combined with strong correlation between the price of these leading assets and the wider token market, the effects have been felt across most of our more niche token assets too. However, as we chose highly successful projects in the last part of 2016 and early 2017 and drew down on these at the right time, we therefore had significant funds to allocate during the shift in market cycle and we have been able to continue backing projects of the highest quality. Blockchain innovation continues at a rapid pace and we’re excited about how our portfolio is taking shape and we’re confident that when a change in sentiment comes, we will be in a very strong position to make the most of it.

Just as blockchain technology continues to thrive, our fundamentals as a company are also gaining momentum. The success of our investment process is proven, our network of trusted friends, developers and institutions is growing by the day and our ambitions and enthusiasm for this disruptive technology are stronger than ever. These attributes will allow us to make most of the opportunities presented to us in the coming year and we’re excited for what 2019 will bring.

George McDonaugh CEO
Date: 26 September 2018



Profit & loss account


                            6 months to 6 months to 30 June    12 months to
                                30 June                2017 31 December 2017
                                   2018

                              Unaudited           Unaudited          Audited
                                    GBP                 GBP              GBP

Income

Unrealised (loss)/profit    (8,099,865)           3,075,436       10,825,365

Realised profit               1,118,846             998,373        5,447,789

Gross (loss)/profit         (6,981,019)           4,073,809       16,273,154

Administrative expenses       (380,190)            (89,065)      (1,794,264)

(Loss)/profit on ordinary   (7,361,209)           3,984,744       14,478,890
activities before taxation

Taxation                      1,472,242         (1,434,193)      (2,868,386)

(Loss)/profit on ordinary   (5,888,967)           2,550,551       11,610,504
activities after taxation

(Loss)/profit per share    (5.33) pence          4.28 pence       3.16 pence





Balance sheet


                                                                              At
                                    At 30 June 2018  At 30 June 31 December 2017
                                                           2017

                                          Unaudited   Unaudited          Audited
                                                GBP         GBP              GBP

Current assets
Debtors                                       2,040       8,419            2,804
Investments                               7,514,839     305,793       14,214,185

Digital currencies                        1,176,006   4,138,488        2,505,245

Cash held on trading platforms            1,057,350       1,990          248,927

Cash at bank                                 58,424      12,864          788,792

                                          9,808,659   4,467,554       17,759,953

Creditors
Amounts falling due within one year     (2,135,282) (1,475,929)      (4,208,376)

Net current assets                        7,673,377   2,991,625       13,551,577

Creditors
Amounts falling due over one year                 -           -                -

Total assets less current                 7,673,377   2,991,625       13,551,577
liabilities


Capital and reserves
Called up share capital                     685,993     590,993          685,993
Share premium account                     2,163,649     758,649        2,163,649
Profit and loss account                   4,823,735   1,641,983       10,701,935

Equity shareholders’ funds                7,673,377   2,991,625       13,551,577



Net Asset Value per share                6.95 pence  5.02 pence      12.36 pence



Interim report notes

Interim report

The information relates to the 6-month period from 1 January to 30 June 2018

The interim report was approved by the Directors on 26 September 2018.

The interim report has been reviewed by the company’s auditors but has not been audited.

Basis of accounting

While the financial information included in this interim financial report has been prepared in accordance with the recognition and measurement criteria of Financial Reporting Standard 102 – ‘The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland’ (‘FRS 102’), this interim financial information does not itself contain sufficient information to comply fully with FRS 102.

These interim financial statements are the financial statements of the Company.

The financial statements are prepared under the historical cost convention except for the modification to a fair value basis for certain financial instruments as specified in the accounting policies below and are in accordance with applicable accounting standards.

Investments 

Investments are held as current asset trade investments and are valued at the lower of cost and net realisable value.  Foreign denomination loans are translated into sterling at the rate of exchange ruling at the balance sheet date.  For those investments listed on a recognised market, net realisable value is taken as mid-market price. Where the directors consider the market price of a company is likely to irreversibly fall, additional write downs in valuation to below mid-market price are made.

The net realisable value of certain investments is not readily determinable by reference to a quoted market price. The directors have therefore made their own assessment of the net realisable value and adjusted the carrying value of the investment where it is considered less than cost. This estimate requires estimation techniques, which are reliant upon their experience and expertise.

The Company accounts for digital currencies, which it considers to be an operating asset, at their initial cost and subsequently revalues the carrying amounts of the digital currencies held at each reporting date based on their current fair value using rates obtained from various exchanges, including Oanda and Coinmarket. The rates obtained from these sources represent a generally well recognised quote price in an active market, which market and database is accessible to the Company on an ongoing basis. Digital currencies which have not undergone their ICO (initial coin offering) at the reporting date are valued at cost and the directors have verified that this is in line with the opening prices at ICO post period end. The changes in fair value are recognised in the Company’s Profit and Loss account.

The Company will report again for the full year to 31 December 2018.

The Directors of KR1 Plc accept responsibility for this announcement.

--ENDS--

Contact Details:

Stephen Corran
KR1 Plc
Tel : 01624 676716
Email : scorran@bridgewaters.co.im

NEX Corporate Adviser
Peterhouse Capital Limited
Fungai Ndoro and Mark Anwyl
+44 (0)20 7469 0930