TIDMAIQ
RNS Number : 9884G
AIQ Limited
30 July 2021
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF EU REGULATION 596/2014.
30 July 2021
For Immediate Release
AIQ Limited
("AIQ" or the "Company" or, together with Alchemist Codes and
Alcodes International, the "Group")
Interim Results
The Board of AIQ (LSE: AIQ) announces the Company's unaudited
consolidated interim results for the six months ended 30 April
2021.
Summary
-- As previously announced, the COVID-19 pandemic had a profound
impact on Alchemist Codes Sdn Bhd ("Alchemist Codes") and the
business model of its OctaPLUS e-commerce platform:
o Retailers transitioned to focus on direct-to-consumer online
sales & marketing, which had a severe impact on OctaPLUS'
affiliate marketing commission model
o Economic uncertainty resulted in customers delaying purchasing
decisions for IT consultancy projects and government lockdown
measures in Malaysia and Hong Kong prevented management meeting
with potential customers and business contacts resulting in
negligible sales activity
-- The Board implemented a number of cost-cutting measures and
initiated a strategic review to assess the viability of Alchemist
Codes, which concluded post period:
o Divestment of certain e-commerce software and technology
developed in-house by Alchemist Codes
o Focus on building the IT consultancy business of Alcodes
International in Hong Kong
o Efficiency measures expected to generate savings of
approximately GBP400,000 on an annualised basis
-- Revenue for the six months to 30 April 2021 was GBP12,079 (H1 2020*: GBP25,409)
-- Net loss for the period was GBP915,425 (H1 2020*: GBP612,993)
-- Cash and cash equivalents at 30 April 2020 of GBP1.0 million
(31 October 2020: GBP1.8 million)
* The six-month period to 30 April 2020 included approximately
one month's operations of Alchemist Codes following the acquisition
in March 2020.
Graham Duncan, Chairman of AIQ, said:
"As previously stated, the COVID-19 pandemic had a profound
impact on Alchemist Codes, particularly given that the business was
at a relatively early stage of development. Both the roll-out of
its OctaPLUS e-commerce platform and its IT consultancy business
were met with severe headwinds such that little progress could be
made and sales activity during the period was negligible. As a
result, and combined with the continued uncertainty over the
post-pandemic economic recovery and market outlook, the Board
undertook significant cost-cutting measures and a fundamental
strategic review, which completed post period. We have taken steps
to preserve cash while seeking to reposition the business by
widening its focus beyond e-commerce. While it is early days, we
have received some initial interest in the support we can provide
for digital assets. The Board is closely monitoring the progress of
the Group and will take further action if required."
Enquiries
AIQ Limited c/o +44 (0)20 7618 9100
Graham Duncan, Chairman
VSA Capital Limited (Financial Adviser
& Broker) +44 (0)20 3005 5000
Andrew Raca (Corporate Finance)
Luther Pendragon (Financial PR) +44 (0)20 7618 9100
Claire Norbury
Operational Review
As noted in the Group's final results announcement, the
prolonged and multifaceted impact of the COVID-19 pandemic, which
was compounded by Alchemist Codes being at a relatively early stage
of development, resulted in negligible sales activity during the
first half of the year to 30 April 2021. In particular, the
forecast growth in registered users and customer spend on the
OctaPLUS e-commerce platform did not materialise and the rate of
commission from retailers was significantly below expectations.
This reflected the impact of the pandemic on the OctaPLUS business
model. The IT business in Malaysia continued to be subject to a
series of strict government lockdowns - known as "movement control
orders" (MCO) - as a result of the pandemic, including being
prohibited from entering office premises, which restricted
opportunities for management to meet physically with its customers,
prospective customers and business partners. In addition, the
economic downturn and uncertainty caused customers to delay
purchasing decisions or reallocate resources.
Following the establishment of Alcodes International Limited
("Alcodes International"), a wholly-owned subsidiary of Alchemist
Codes, in Hong Kong in July 2020, initial progress was made during
the period in securing IT projects by leveraging the government
grant schemes for IT solutions providers. This accounted for 69% of
the Group's revenues for the six months to 30 April 2021, albeit an
insignificant amount.
Consequently, and combined with the continued significant
uncertainty over the post-pandemic market recovery, in the results
for the year to 31 October 2020, as announced on 30 April 2021, the
Board recognised an impairment of goodwill and intangibles of
GBP2.4 million from the investment in acquiring Alchemist Codes.
The Board also undertook a series of cost-cutting measures and
commenced a strategic review to determine the future of the
business. This strategic review completed post period as described
below.
Strategic review
The focus of the Board in its review was on preserving cash
within the business whilst income levels remain depressed. This has
resulted in decisions to cut costs, dispose of non-core activities
and prioritise new sources of revenue.
Summary of actions
-- Divestment of certain e-commerce software and technology
developed in-house by Alchemist Codes to Wepin Sdn Bhd ("Wepin")
for RM200,000 (approximately GBP35,000), which completed on 28 May
2021.
-- Eight in-house developers from Alchemist Codes, along with six members of the sales team and administrative staff, are now employed by Wepin.
-- Charles Yong, CEO of Alchemist Codes, is now also employed by
Wepin. Mr Yong remains an Executive Director of AIQ.
-- The OctaPLUS platform and a small team have been retained to
develop the product and seek methods to monetise the registered
user base.
-- Alcodes International, headquartered in Hong Kong, has seen
initial sales (albeit still very low amounts) from IT consultancy
projects. Executive Director Edwin Li, who is based in Hong Kong,
will focus on building the IT consultancy business and look to
expand it into other technology areas such as digital assets.
-- In addition to other reductions, total headcount of the Group
has been cut by over 60% to 14 employees.
-- The Board and senior management have taken a voluntary cut of
20% in their fees, backdated from 1 May 2021.
-- As a result of these efficiency measures, the Group will
recognise savings of approximately GBP400,000 on an annualised
basis.
Financial Review
Revenue for the six months to 30 April 2021 was GBP12,079, with
sales being severely impacted by the pandemic as described above,
compared with GBP25,409 for the first half of the previous year, a
period which included an approximately one-month contribution from
Alchemist Codes following the acquisition in March 2020. The
majority of revenue during the period was based on the sale of
software products and services, with a small contribution from
cashback generated by OctaPLUS. Alcodes International contributed
GBP8,383 with the remainder being generated by Alchemist Codes.
The Group recognised a gross loss for the period of GBP196,801
compared with a gross profit of GBP10,099 for the first half of the
previous year. This was as a result of the lower revenue and the
period to 30 April 2021 reflecting six months of operations of
Alchemist Codes compared with approximately one month for the
earlier period following the acquisition in March 2020.
Administrative expenses were GBP573,030 (H1 2020: GBP288,798)
reflecting the inclusion of Alchemist Codes for the full six-month
period against just one month in the comparative period of the
prior year. The Group recognised losses on foreign exchange of
GBP138,498 (H1 2020: gain GBP61,843) due to the weakness of the
Malaysian Ringgit and Hong Kong Dollar against the Pound. However,
the Group did not incur any transaction costs during the period
compared with GBP406,070 in the first half of the prior year.
Operating loss was GBP908,329 (H1 2020: GBP622,926) with the
increase reflecting the gross loss for the period offset by
significant transaction costs in the prior period. Net finance
costs were GBP7,096 compared with net finance income of GBP9,933
for the previous period. Consequently, loss before tax for the six
months to 30 April 2021 was GBP915,425 (H1 2020: GBP612,993). The
Group was not subject to taxation during the period or the first
half of the prior year.
As a result of the greater net loss, the loss per share
increased to 1.4 pence (H1 2020: 1.1 pence loss per share).
The Group had cash and cash equivalents of GBP1.0 million at 30
April 2021 (31 October 2020: GBP1.8 million; 30 April 2020: GBP3.2
million) and GBP0.7 million currently.
Current Trading and Outlook
Since period end, the Group has seen an increase in revenue run
rate, albeit still very low amounts. The majority of the revenue
continues to be generated by Alcodes International through the
provision of IT solutions in Hong Kong. In addition, and as noted
above, the Group has received approximately GBP35,000 in the second
half of the year from the divestment of certain e-commerce software
and technology.
Following the completion of the strategic review, the Group has
commenced exploring opportunities for expanding its focus beyond
e-commerce and to target potential customers in North Asia and
Australia. The Group has received initial interest in its ability
to provide digital asset support. While it is too early to
determine if this strategy will be successful, any significant
benefits would likely only be recognised from next year. The Board
will update the market on these activities as appropriate in due
course.
As a result, due to the impact of the pandemic in Malaysia in
the first half and the early nature of the business in Hong Kong,
the Group continues to anticipate that revenue for the year to 31
October 2021 will be lower than that for the year to 31 October
2020. The Board is closely monitoring the progress of the Group and
will take further action to cut costs if required.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 April 2021
Note Six months Six months Year ended
ended ended 31 Oct 2020
30 Apr 2021 30 Apr 2020 Audited
Unaudited Unaudited GBP
GBP GBP
Revenue 7 12,079 25,409 154,649
Cost of sales (208,880) (15,310) (143,268)
-------------- -------------- --------------
Gross (loss)/profit (196,801) 10,099 11,381
Administrative expenses (573,030) (288,798) (1,367,162)
Transaction costs 5 - (406,070) (380,495)
Impairment of intangible
assets - - (2,400,931)
Gain/(loss) on foreign
exchange (138,498) 61,843 (2,926)
Operating loss (908,329) (622,926) (4,140,133)
Finance income 263 9,933 13,852
Finance costs (7,359) - (4,306)
Loss before taxation (915,425) (612,993) (4,130,587)
Taxation - - 493,000
-------------- -------------- --------------
Loss attributable
to equity holders
of the Company for
the period (915,425) (612,993) (3,637,587)
============== ============== ==============
Other comprehensive
income (as may be
reclassified to
profit
and loss in subsequent
periods, net of
taxes):
Exchange difference
on translating foreign
operations 30,223 (6,682) (7,619)
-------------- -------------- --------------
Comprehensive income
attributable to
equity holders of
the Company for
the period (885,202) (619,675) (3,645,206)
============== ============== ==============
Loss per share -
basic and diluted
(GBP per share) 8 (0.014) (0.011) (0.061)
The accompanying notes form an integral part of these
consolidated financial statements.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 April 2021
Note 30 Apr 2021 31 Oct 2020
Unaudited Audited
GBP GBP
Assets
Non-current assets
Property, plant and equipment 184,995 204,684
Right-of-use assets 208,167 270,727
Intangible assets 6 - -
Rental deposits 29,560 31,453
------------ ------------
Total non-current assets 422,722 506,684
------------ ------------
Current assets
Trade receivables 6,288 7,799
Prepayments and other receivables 46,241 61,660
Tax receivable 23,274 24,764
Cash and cash equivalents 1,022,585 1,827,379
------------ ------------
Total current assets 1,098,388 1,921,602
------------ ------------
Total assets 1,521,110 2,428,466
------------ ------------
Equity and liabilities
Capital and reserves
Ordinary shares 9 647,607 647,607
Share premium 6,019,207 6,019,207
Foreign currency translation
reserve 22,604 (7,619)
Accumulated losses (5,710,896) (4,795,471)
------------ ------------
Total equity 978,522 1,863,724
------------ ------------
Liabilities
Current liabilities
Trade payables 146,146 155,468
Accruals and other payables 183,675 136,573
Lease liabilities 91,036 94,012
Total current liabilities 420,857 386,053
------------ ------------
Non-current liabilities
Lease liabilities 121,731 178,689
Total non-current liabilities 121,731 178,689
------------ ------------
Total equity and liabilities 1,521,110 2,428,466
------------ ------------
The accompanying notes form an integral part of these
consolidated financial statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 April 2021
Share Share Foreign Accumulated Total equity
Capital premium currency losses
translation
reserve
GBP GBP GBP GBP GBP
Balance as at 31
October 2019 (Audited) 518,394 3,848,420 - (1,157,884) 3,208,930
Total comprehensive
loss for the
period - - (6,682) (612,993) (619,675)
Issue of shares 129,213 2,170,787 - - 2,300,000
Balance at 30 April
2020 (Unaudited ) 647,607 6,019,207 (6,682) (1,770,877) 4,889,255
---------- ---------- ------------- ------------- --------------
Total comprehensive
loss for the
period - - (937) (3,024,594) (3,025,531)
Balance at 31 October
2020 (Audited ) 647,607 6,019,207 (7,619) (4,795,471) 1,863,724
---------- ---------- ------------- ------------- --------------
Total comprehensive
profit/(loss)
for the financial
period - - 30,223 (915,425) (885,202)
Balance at 30 April
2021 (Unaudited ) 647,607 6,019,207 22,604 (5,710,896) 978,522
---------- ---------- ------------- ------------- --------------
The accompanying notes form an integral part of these
consolidated financial statements.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 30 April 2021
Six-month Six-month Year ended
period period 31 Oct 2020
ended ended Audited
30 Apr 2021 30 Apr 2020 GBP
Unaudited Unaudited
GBP GBP
Cash flows from operating activities
Loss before taxation (915,425) (612,993) (4,130,587)
Adjustment for:-
Depreciation charges 60,137 319 31,031
Amortisation charges - 35,258 239,765
Impairment of intangible assets - - 2,400,931
Interest income (263) (9,933) (13,852)
Loss/(gain) on foreign exchange 146,100 (61,843) 16,623
------------- ------------- --------------
Operating loss before working
capital changes (709,451) (649,192) (1,456,090)
Decrease/(increase) in receivables 13,916 (34,251) (33,544)
Increase in payables 47,602 6,887 19,579
Increase/(decrease) in amount
owing to directors - 12,976 (290,317)
Tax paid - - (18,184)
------------- ------------- --------------
Cash used in operations (647,933) (663,580) (1,778,556)
Interest received 263 9,933 13,852
------------- ------------- --------------
Net cash used in operating activities (646,670) (653,647) (1,764,704)
------------- ------------- --------------
Cash flows from investing activities
Cash acquired on purchase of
subsidiary (Note 5) - 111,073 111,073
Acquisition of plant and equipment (4,975) - (194,244)
Net cash used in investing activities (4,975) 111,073 (83,171)
------------- ------------- --------------
Cash flows from financing activities
Repayment of lease liabilities (44,803) - (22,637)
Net cash used in financing activities (44,803) - (22,637)
------------- ------------- --------------
Net decrease in cash and cash
equivalents (697,448) (542,574) (1,870,512)
Cash and cash equivalents at
beginning of the period 1,827,379 3,703,592 3,703,592
Effect of exchange rates on cash
and cash equivalents (107,346) 57,377 (5,701)
Cash and cash equivalents at
end of the period 1,022,585 3,218,395 1,827,379
------------- ------------- --------------
Material non-cash transactions:
The Company's acquisition of Alchemist Codes in March 2020 was a
non-cash transaction satisfied wholly by the issue of shares in the
Company, as described in Note 5 below.
The accompanying notes form an integral part of these
consolidated financial statements.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS
1. GENERAL INFORMATION
AIQ Limited ("the Company") was incorporated and registered in
The Cayman Islands as a private company limited by shares on 11
October 2017 under the Companies Law (as revised) of The Cayman
Islands, with the name AIQ Limited, and registered number
327983.
The Company's registered office is located at 5th Floor Genesis
Building, Genesis Close, PO Box 446, Cayman Islands, KY1-1106.
On 20 March 2020, the Company completed the acquisition of the
entire issued share capital of Alchemist Codes Sdn Bhd ("Alchemist
Codes"), (together, the "Group"), a Malaysian incorporated
information technology solutions developer focusing on the
e-commerce sector. The comparative information therefore included
one month's trading results compared with six months in the current
period.
The Company has a standard listing on the London Stock
Exchange.
The consolidated financial statements include the financial
statements of the Company and its controlled subsidiaries (the
"Group").
2. PRINCIPAL ACTIVITIES
The principal activity of the Company is to seek acquisition
opportunities and to act as a holding company for a group of
subsidiaries that are involved in the technology sector, with a
particular focus on e-commerce.
The principal activities of the subsidiaries comprise designing
and developing information technology solutions for clients and,
for Alchemist Codes, also the development of its own e-commerce
solution. In addition, Alcodes International is now seeking to
expand into further technology areas such as digital assets.
3. ACCOUNTING POLICIES
a) Basis of preparation
The condensed consolidated interim financial statements have
been prepared in accordance with the Disclosure and Transparency
Rules of the Financial Conduct Authority and International
Accounting Standard 34 "Interim Financial Reporting" (IAS 34).
Other than as noted below, the accounting policies applied by the
Group in these condensed interim financial statements are the same
as those set out in the Group's audited financial statements for
the year ended 31 October 2020. These financial statements have
been prepared under the historical cost convention and cover the
six-month period to 30 April 2021.
These condensed financial statements do not include all of the
information required for a complete set of IFRS financial
statements. However, selected explanatory notes are included to
explain events and transactions that are significant to an
understanding of the changes in the Group's financial position and
performance since the audited financial statements for the year
ended 31 October 2020.
The condensed interim financial statements are unaudited and
have not been reviewed by the auditors and were approved by the
Board of Directors on 29 July 2021.
The financial information is presented in Pounds Sterling (GBP),
which is the presentational currency of the Company.
A summary of the principal accounting policies of the Group are
set out below.
b) Basis of consolidation
The consolidated financial statements incorporate the financial
statements of the Company and its subsidiaries made up to the end
of the reporting period. Subsidiaries are entities over which the
Group has control. The Group controls an investee if the Group has
power over the investee, exposure to variable returns from the
investee, and the ability to use its power to affect those variable
returns.
The consolidated financial statements present the results of the
Company and its subsidiaries as if they formed a single entity.
Inter-company balances and transactions between Group companies are
therefore eliminated in full. The financial information of
subsidiaries is included in the Group's financial statements from
the date that control commences until the date that control
ceases.
On 20 March 2020, the Company completed a conditional share
purchase agreement with Alchemist Codes for the acquisition by the
Company of 100% of the issued share capital of Alchemist Codes,
which is more fully described in Note 5.
The acquisition of Alchemist Codes by the Company does not meet
the definition of a reverse acquisition under IFRS 3 due to:
- a greater proportion of share capital in the Group being held
by shareholders of AIQ Limited, rather than pre-acquisition
shareholders of Alchemist Codes;
- AIQ Limited's shareholders have the ability to appoint or
remove a majority of the members of the Board;
- greater Board representation in the Group of the AIQ Limited
Board of directors rather than pre-acquisition members of the
Alchemist Codes' Board; and
- the composition of the senior management of the Group consists
mostly of AIQ Limited management.
The acquisition of Alchemist Codes has therefore been accounted
for under the acquisition method.
Under the acquisition method, the results of Alchemist Codes are
included from the date of acquisition. At the date of acquisition,
the fair values of the net assets of Alchemist Codes have been
determined and these values are reflected in the consolidated
financial statements. The cost of acquisition is measured at the
aggregate of the fair values, at the date of exchange, of assets
given, liabilities incurred or assumed, and equity instruments
issued by the Group in exchange for control of the acquiree, plus
any costs directly attributable to the business combination. Any
excess of the purchase consideration of the business combination
over the fair value of the identifiable assets and liabilities
acquired is recognised as goodwill. Goodwill, if any, is not
amortised but reviewed for impairment at least annually. If the
consideration is less than the fair value of assets and liabilities
acquired, the difference is recognised directly in the statement of
comprehensive income.
Acquisition-related costs are expensed as incurred.
In July 2020, the Group established a wholly-owned Hong Kong
subsidiary, Alcodes International Limited.
c) Going concern
The financial statements are required to be prepared on the
going concern basis unless it is inappropriate to do so.
The Group incurred losses of GBP0.9 million during the period
and cash outflows of GBP0.7 million. As at 30 April 2021, the Group
had net current assets of GBP0.7 million and cash of GBP1.0
million. The Group's cash position was approximately GBP0.7 million
at the date of this report.
The Group meets its day-to-day working capital requirements
through cash generated from the capital it raised on admission to
the London Stock Exchange and from the operations of its
subsidiaries.
COVID-19 has been identified as having a significant impact on
the Group in the period due to the prolonged public lockdown in
Malaysia. The Board has taken, and continues to take, a number of
actions to protect operating cash flow in the short term. In
particular, the Board undertook a strategic review to assess the
viability of Alchemist Codes and to stem the losses of the business
and reduce the cost base, whilst also seeking to evaluate its
future, as further explained in Note 10.
Notwithstanding these actions, a material uncertainty exists
that may cast significant doubt on the Group's ability to continue
as a going concern with the uncertainty of future trading
performance giving rise to a material uncertainty over the going
concern status of the Group. The Directors consider the Group to be
a going concern but have identified a material uncertainty in this
regard.
4. SUBSIDIARIES
Name Place of Registered Principal Effective interest
incorporation address activity
30.04.2021 31.10.2020
---------------- ------------------ ---------------------- ----------- -----------
2-9, Jalan
Puteri 4/8,
Bandar Puteri,
47100 Puchong,
Alchemist Selangor Darul Design and
Codes Sdn Ehsan development
Bhd Malaysia Malaysia of software 100% 100%
---------------- ------------------ ---------------------- ----------- -----------
Cyberport 3,
3 Cyberport
Alcodes International Road, Telegraph Software
Limited* Hong Kong Bay, Hong Kong and app development 100% 100%
---------------- ------------------ ---------------------- ----------- -----------
* Held by Alchemist Codes Sdn Bhd
5. ACQUISITION OF ALCHEMIST CODES SDN BHD
On 20 March 2020, the Company completed a conditional share
purchase agreement (the "SPA") with Alchemist Codes for the
acquisition by the Company of 100% of the issued share capital of
Alchemist Codes (the "Transaction"), and, on 26 March 2020
readmission of the enlarged share capital to trading on the Main
Market of the London Stock Exchange. Alchemist Codes is a Malaysian
incorporated information technology solutions developer focusing on
the e-commerce sector.
Under the terms of the SPA, the consideration was GBP2.3
million, which was settled through the allotment and issue of
12,921,346 ordinary shares of 1 pence each in the capital of AIQ
(the "Consideration Shares") at 17.8 pence per share.
The following table summarises the consideration paid for
Alchemist Codes, the fair value of assets acquired, and liabilities
assumed at the acquisition date.
Book value Fair value Fair value
adjustments
------------------------------------ ----------- ------------- -----------
Consideration GBP GBP GBP
------------------------------------ ----------- ------------- -----------
Consideration shares 2,300,000
Total consideration 2,300,000
------------------------------------ ----------- ------------- -----------
Recognised amounts of identifiable
assets acquired and liabilities
assumed
------------------------------------ ----------- ------------- -----------
Cash and cash equivalents 111,073 - 111,073
Property, plant and equipment 17,038 - 17,038
Software 38,676 - 38,676
Trade and other receivables 80,011 - 80,011
Trade and other payables (55,818) - (55,818)
OctaPLUS platform - 1,328,996 1,328,996
Messenger App - 726,150 726,150
Deferred tax (493,000) (493,000)
------------------------------------ ----------- ------------- -----------
Total identifiable net assets 190,980 1,562,146 1,753,126
Goodwill 546,874
Total 2,300,000
------------------------------------ ----------- ------------- -----------
The goodwill and intangibles arising on the acquisition were
fully impaired at 31 October 2020, as more fully described in the
Company's annual report for the year.
Transaction costs of GBP380,495 were expensed in the year ended
31 October 2020 relating to the acquisition of Alchemist Codes and
re-admission to the Official List of the London Stock Exchange. No
amounts were directly attributable to issuing new shares which
would otherwise be deducted from equity.
6. INTANGIBLE ASSETS
OctaPLUS Messenger
Goodwill Software Platform App Total
Cost GBP GBP GBP GBP GBP
At 1 November 2019 - - - -
Additions through
business combinations - 38,678 - - 38,678
Arising on purchase
price allocation 53,874 - 1,328,996 726,150 2,109,020
Currency translation
differences - (1,600) - - (1,600)
As at 30 April 2020
(Unaudited) 53,874 37,078 1,328,996 726,150 2,146,098
--------------- ----------- ---------- ---------- -----------
Deferred tax on
purchase price allocation 493,000 - - - 493,000
Currency translation
differences - 1,602 - - (1,602)
As at 31 October
2020 (Audited) 546,874 38,678 1,328,996 726,150 2,640,696
--------------- ----------- ---------- ---------- -----------
Additions - - - - -
As at 30 April 2021
(Unaudited) 546,874 38,676 1,328,996 726,150 2,640,696
--------------- ----------- ---------- ---------- -----------
Accumulated amortisation
and impairment
At 1 November 2019 - - - - -
Amortisation for
the period - 1,006 22,150 12,102 35,258
Currency translation
differences - (60) - - (60)
As at 30 April 2020
(Unaudited) - 946 22,150 12,102 35,198
------- --------- ------- ------- -------
Amortisation for
the period - (946) 132,900 72,613 204,567
Impairment provision 546,874 38,676 1,173,946 641,435 2,400,931
As at 31 October
2020 (Audited) 546,874 38,676 1,328,996 726,150 2,640,696
--------- ------------- ---------- --------- ----------
Amortisation for
the period - - - - -
As at 30 April 2021
(Unaudited) 546,874 38,676 1,328,996 726,150 2,640,696
--------- ---------------- -------------- ------------ ------------
Carrying amounts
At 30 April 2021
(Unaudited) - - - - -
=== =====
At 31 October 2020
(Audited) - - - - -
=== =====
At 30 April 2020
(Unaudited) 53,874 36,132 1,303.846 714,048 2,110,900
======== ======== ========== ======== ==========
All of the Group's goodwill and intangible assets related to the
Alchemist Codes business and were fully impaired in the year ended
31 October 2020. No further amounts have been capitalised during
the period ended 30 April 2021.
7. REVENUE
Six months Six months
ended ended Year ended
30 Apr 2021 30 Apr 2020 31 Oct 2020
Unaudited Unaudited Audited
GBP GBP GBP
Sale of software products 10,635 11,509 99,596
Maintenance income - 13,900 41,725
Cashback income 1,332 - 13,043
Other 112 - 285
Total 12,079 25,409 154,649
-------------- -------------- --------------
A total of GBP8,386 of revenues were generated in Hong Kong and
GBP3,693 of revenues were generated in Malaysia. In the six months
ended 30 April 2020 and the year ended 31 October 2020, all
revenues were generated in Malaysia. The period ended 30 April 2020
included one month's revenues from Alchemist Codes.
8. LOSS PER SHARE
The Company presents basic and diluted earnings per share
information for its ordinary shares. Basic loss per share is
calculated by dividing the loss attributable to ordinary
shareholders of the Company by the weighted average number of
ordinary shares in issue during the reporting period. Diluted
earnings per share are determined by adjusting the loss
attributable to ordinary shareholders and the weighted average
number of ordinary shares outstanding for the effects of all
dilutive potential ordinary shares.
There is no difference between the basic and diluted loss per
share, as the Company has no potential ordinary shares.
Six months Six months Year ended
ended 30 ended 30 31 Oct 2020
Apr 2021 Apr 2020
Unaudited Unaudited Audited
GBP GBP GBP
Loss after tax attributable to
owners of the Company (915,425) (612,993) (3,637,587)
Weighted average number of shares:
* Basic 64,760,721 54,750,228 59,818,130
Loss per share (expressed as GBP
per share)
* Basic (0.014) (0.011) (0.061)
9. SHARE CAPITAL
Six months Six months Year
ended ended ended
30 Apr 2021 30 Apr 2021 31 Oct
2020
Unaudited Unaudited Audited
GBP GBP GBP
As at beginning of period 647,607 518,394 518,394
Issued during the period - 129,213 129,213
As at end of period 647,607 647,607 647,607
------------ ------------------ ------------------
Nominal
value
Number GBP
Authorised
Ordinary shares of GBP0.01 each 800,000,000 8,000,000
Issued and fully paid:
As at 1 November 2020 64,760,721 647,607
Issue of shares in the period - -
At 30 April 2021 64,760,721 647,607
------------ ----------
10. SUBSEQUENT EVENTS
In April 2021, the Board initiated a strategic review to assess
the viability of Alchemist Codes and to stem the losses of the
business, whilst also seeking to evaluate its future.
The Board concluded this review in June 2021 and implemented the
actions noted below.
The focus of the Board in its review was on preserving cash
within the business whilst income levels remain depressed. This
resulted in decisions to cut costs, dispose of non-core activities
and prioritise new sources of revenue as follows:
- Divestment of certain e-commerce software and technology
developed in-house by Alchemist Codes to Wepin Sdn Bhd ("Wepin")
for RM200,000 (approximately GBP35,000), which completed on 28 May
2021.
- Eight in-house developers from Alchemist Codes, along with six members of the sales team and administrative staff, are now employed by Wepin.
- Charles Yong, CEO of Alchemist Codes, now also employed by
Wepin. Mr Yong remains an Executive Director of AIQ, with
substantially all of his costs now being paid by Wepin.
- OctaPLUS platform and small team retained to develop product
and seek methods to monetise the registered user base.
- Alcodes International, headquartered in Hong Kong, has seen
initial sales from IT consultancy projects. Executive Director
Edwin Li, who is based in Hong Kong, will focus on building the IT
consultancy business and look to expand it into other technology
areas such as digital assets.
- In addition to other reductions, total headcount of the Group
is being cut by over 60% to 14 employees.
- Board and senior management have taken a voluntary cut of 20%
in their fees, backdated from 1 May 2021.
As a result of these efficiency measures, the Group will
recognise savings of approximately GBP400,000 on an annualised
basis.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR BRGDRBUDDGBC
(END) Dow Jones Newswires
July 30, 2021 02:00 ET (06:00 GMT)
Aiq (LSE:AIQ)
Historical Stock Chart
From Mar 2024 to Apr 2024
Aiq (LSE:AIQ)
Historical Stock Chart
From Apr 2023 to Apr 2024
