TIDMDVT

RNS Number : 3686P

daVictus plc

18 October 2021

DAVICTUS PLC

CONDENSED CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2021

Chairman's Statement

I am pleased to report the interim financial statements of Davictus PLC (the "Company" or Davictus") for the six months ended 30 June 2021.

The Company had on 21 June 2021 raised equity funds of GBP36,000 (gross) through the issuance of 1,200,000 ordinary shares of no-par value at a price of 3.0 pence per ordinary share. The purpose of the fund raise was to provide additional working capital for the Company.

Currently, the Company is in the midst of finalizing its second franchisee appointment which is targeting to start its operation within the fourth quarter of the year. The Company however has not entered into any agreement for the second franchisee as at the date of this report. It is anticipated that the franchisee appointment will be finalised within this month.

Meanwhile the franchisee in Kuala Lumpur has started to adapt new normalcy with the recovering economy with revised restaurant SOP being implemented. Operations will resume as normal by December this year.

As always, I remain optimistic with our business prospects because we have a great premium dining brand with many unique offerings.

The board would like to thank all the stakeholders of the Company for their continued support.

Abd Hadi Bin Abd Majid

Chairman

18 October 2021

Director's Statement

For the reporting period under review, the Company reported a net loss of GBP5,404. At 30 June 2021, the Company had cash in bank of GBP45,523.

There are a number of potential risks and uncertainties which may have material impact on the Company's performance over the remaining six months of the financial year and could cause actual results to differ materially from expected and historical results. The directors do not consider any changes on the principal risks and uncertainties since the publication of the annual report for the year ended 31 December 2020, which contained a detailed explanation of the risks relevant to the Company, is also available at http://www.davictus.co.uk .

The Board looks forward to providing further updates to the shareholders in due course.

Responsibility Statement

The Directors are responsible for preparing the Condensed Interim Financial Statements in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority ('DTR') and with International Accounting Standard 34 on Interim Financial Reporting (IAS 34).

The directors confirm that, to the best of their knowledge, this condensed consolidated interim financial statements have been prepared in accordance with IAS 34, as adopted by the European Union. The interim management report includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:

-- an indication of important events that have occurred during the first six months and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and

-- material related-party transactions in the first six months and any material changes in the related-party transactions described in the last annual report.

Director

18 October 2021

Condensed Consolidated Statement of Comprehensive Income

For the six months ended 30 June 2021

 
                                      Notes     6 months        6 months 
                                               period ended    period ended 
                                               30 June 2021    30 June 2020 
                                               (Unaudited)     (Unaudited) 
                                                   GBP             GBP 
 
 Revenue                                3            75,000           3,333 
 Cost of sales                                            -               - 
                                             --------------  -------------- 
 Gross profit                                        75,000           3,333 
 Operating expenses                                (79,635)       (219,000) 
                                             --------------  -------------- 
 Operating loss                                     (4,635)       (215,667) 
 Other income                                         1,066               - 
 Gain on foreign exchange                             1,249               - 
 Interest income                                          8             168 
 Finance expenses                                   (3,092)         (1,077) 
                                             -------------- 
 Loss before taxation                               (5,404)       (216,576) 
 Tax expense                            4                 -               - 
 Loss for the period attributable 
  to equity holders of the company                  (5,404)       (216,576) 
                                             --------------  -------------- 
 
 Basic and diluted loss per share 
  (pence)                               5          (0.04) p        (1.82) p 
 
 

Condensed Consolidated Statement of Financial Position

As at 30 June 2021

 
                                 Notes      As at           As at            As at 
                                           30 June         30 June        31 December 
                                             2021            2020             2020 
                                         (Unaudited)     (Unaudited)        Audited 
                                                 GBP               GBP        GBP 
 
 Non-current assets 
 Intangible assets                                 -          -                      - 
 Right-of-use asset                6          76,056       57,911               47,053 
                                              76,056       57,911               47'053 
                                        ------------  ----------------  -------------- 
 
 Current assets 
 Trade receivables                            82,500         20,000             35,850 
 Other debtor                                 14,490          -                      - 
 Cash and cash equivalents                    45,523       48,032               20,040 
                                        ------------  ----------------  -------------- 
                                             142,513       68,032               55,890 
                                        ------------  ----------------  -------------- 
 
 Total assets                                218,569       125,943             102,944 
 
 Equity attributable 
  to equity holders of 
  the company 
 Stated capital                    8       1,224,400      1,188,400        1,188,400 
 Accumulated losses                      (1,224,564)     (1,183,802)      (1,219,159) 
                                        ------------  ----------------  -------------- 
 Total equity                                  (164)        4,598          (30,759) 
                                        ------------  ----------------  -------------- 
 
 Non-current liabilities 
 Lease liabilities                 7          47,766       48,119           26,812 
                                              47,766       48,119           26,812 
                                        ------------  ----------------  -------------- 
 
 Current liabilities 
 Other payables                    9         134,258            55,550      85,584 
 Amount owing to directors                     7,568             7,568   - 
 Lease liabilities                 7          29,141            10,108      21,307 
                                             170,967            73,226      106,891 
                                        ------------  ----------------  -------------- 
 
 Total equity and liabilities                218,569           125,943      102,944 
                                        ============  ================  ============== 
 
 

Condensed Consolidated Statement of Cash Flows

For the six months ended 30 June 2021

 
                                           6 months period     6 months 
                                            ended 30 June     period ended 
                                                 2021           30 June 
                                                                  2020 
                                             (Unaudited)      (Unaudited) 
                                                 GBP              GBP 
 Cash flow from operating activities 
 Operating loss                                (5,404)           (216,576) 
 Adjustment for: 
 Gain on lease termination                     (1,066)             - 
 Depreciation of right-of-use-assets           15,211            7,239 
 Interest on lease liabilities                  2,446            1,077 
                                          ----------------  -------------- 
                                               11,187          (208,260) 
 Changes in working capital 
 Decrease / (increase) in receivables         (61,140)         (20,000) 
 Increase / (decrease) in other 
  payables                                     48,674           25,489 
 Increase / (decrease) in amount 
  due to directors                              7,568            7,250 
 Net cash flow used in operating 
  activities                                    6,289          (195,521) 
                                          ----------------  -------------- 
 
 Cash flows from financing activities 
 Proceed from issuance of shares               36,000           135,000 
 Repayment on lease liability                 (16,806)          (8,000) 
 Net cash generated from financing 
  activities                                   19,194           127,000 
 
 Net increase in cash and cash 
  equivalents                                  25,483          (68,521) 
 Cash and cash equivalents at beginning 
  of period                                    20,040           116,553 
                                          ----------------  -------------- 
 Cash and cash equivalents at end 
  of period                                    45,523           48,032 
                                          ================  ============== 
 

Condensed Consolidated Statement of Changes in Equity

For the six months ended 30 June 2021

Period from 1 January 2021 to 30 June 2021

 
                             Stated capital   Accumulated    Total 
                                                 losses 
                                  GBP             GBP         GBP 
 As at 1 January 2021             1,224,400   (1,219,160)     5,240 
 Loss for the period                      -       (5,404)   (5,404) 
                            ---------------  ------------  -------- 
 Total comprehensive loss 
  for the period                          -       (5,404)   (5,404) 
                            ---------------  ------------  -------- 
 As at 30 June 2021               1,224,400   (1,224,564)     (164) 
                            ===============  ============  ======== 
 

Period from 1 January 2020 to 30 June 2020

 
                             Stated capital   Accumulated      Total 
                                                 losses 
                                  GBP             GBP           GBP 
 As at 1 January 2020             1,053,400     (967,226)         86,174 
 Loss for the period               -            (216,576)      (216,576) 
                            ---------------  ------------  ------------- 
 Total comprehensive loss                                      (2 16,576 
  for the period                   -            (216,576)              ) 
                            ---------------  ------------  ------------- 
 Issue of ordinary shares       135,000            -             135,000 
 As at 30 June 2020               1,188,400   (1,183,802)          4,598 
                            ===============  ============  ============= 
 

For the year ended 31 December 2020

 
                             Stated capital   Accumulated      Total 
                                                 losses 
                                  GBP             GBP           GBP 
 As at 1 January 2020             1,053,400     (967,226)      86,174 
                                                ( 251,933    ( 251,933 
 Loss for the period               -                    )         ) 
                            ---------------  ------------  ------------- 
 Total comprehensive loss                       ( 251,933    ( 251,933 
  for the period                   -                    )         ) 
                            ---------------  ------------  ------------- 
 Issue of ordinary shares       135,000            -             135,000 
 As at 31 December 2020           1,188,400   (1,219,159)     (30,759) 
                            ===============  ============  ============= 
 

Notes to the Condensed Interim Financial Statements

For the six months ended 30 June 2021

1. GENERAL INFORMATION

The Company was incorporated and registered in Jersey as a public company limited by shares on 5 February 2015 under the companies (Jersey) Law 1991 and registered number 117716. The registered office of the Company is at the offices of 28 Esplanade, St. Helier, Jersey, JE1 8SB.

   2.   ACCOUNTING POLICIES 

Basis of preparation

The interim financial statements for the six month period ended 30 June 2021 have been prepared in accordance with IAS 34 Interim Financial Reporting. It is unaudited and does not constitute statutory financial statements. The comparative interim financial information covers the period ended 30 June 2020.

The interim financial statements have been prepared on a basis consistent with, and on the basis of, the accounting policies set out in the audited financial statements of the Group for the year ended 31 December 2020, which have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union. The financial information for the period ended 30 June 2020 and 30 June 2021 is unaudited.

There was a restatement of June 2020 financial information in relation to intellectual property acquisition transaction during the year 2020. The Group acquired the intellectual property (IP) rights, owned by Typical Dutch N.V. ("TDNV"), to utilise and develop franchise businesses within Asia region. As the purchase related to the acquisition of these IP rights, comprised of the unregistered trademarks, unregistered assigned rights and materials, it was considered that these assets did not meet the criteria for the recognition of an intangible assets. On that basis, the costs of GBP100,000 was expensed in the statement of comprehensive income. The effect of these restatements impacts the intangible assets, administrative expense and accumulated losses.

The interim financial information is presented in British Pound Sterling ("GBP").

New standards and interpretations

A number of new standards and amendments to standards and interpretations have been issued by International Accounting Standards Board but are not yet effective and in some cases have not yet been adopted by the EU. The Directors do not expect that the adoption of these standards will have a material impact on the financial statements of the Group in future periods.

Basis of consolidation

The consolidated financial statements incorporate the financial information of the Company and entities controlled by the Company (its subsidiaries). Control is achieved where the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

All intercompany transactions, balances, income and expenses are eliminated in consolidation.

Going concern

The condensed interim financial statements have been prepared on a going concern basis, which assumes that the Group will continue to be able to meet its liabilities as they fall due for the foreseeable future.

On 21 June 2021, the Group raised GBP36,000 through the issue of 1.2 million ordinary shares at a price of 3p per share as additional working capital. In addition, the Group received an advance remittance of approximately GBP190,000 from the franchisee. The Directors believe there will be sufficient to pay on going expenses and to meet its liabilities as they fall due for a period of at least 12 months from the date of approval of the financial statements.

The Directors have prepared financial projections for a period of at least 12 months from the date of approval of these financial statements. Those projections anticipate the Group will continue to generate revenue and resume its cash collection from the franchise operation. In view of this prolonged COVID-19 pandemic, there is no certainty the expected cash remittance will be collected as planned and the liability can be discharged at the timely manner. These conditions indicate the existence of a material uncertainty which may cast significant doubt about the Group and the Company's ability to continue as a going concern.

The Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

   3.   REVENUE 

The Group revenue are derived from franchise related fees including brand licence, management fee and royalties according to Restaurant Franchise Agreement between the Group operating subsidiary company Havana Dining Limited with the franchisee. For the reporting period, revenue contributions are from a franchisee located in Kuala Lumpur, Malaysia.

There are no seasonal factors that materially affect the operations of the Group.

   4.   INCOME TAX EXPENSE 

The Company is not a "Financial Services Company" registered under the relevant Jersey laws; or a specified utility company and therefore it is subject to Jersey income tax at the general rate of 0 per cent. If the Company derives any income from Jersey property, including development of land or quarrying, such income will be subject to tax at the rate of 20 per cent. It is not expected that the Company will derive any such income.

No liability to the corporation tax arose for the period ended 30 June 2021 and period ended 30 June 2020, as the Group did not generate any assessable profits during the reporting period.

   5.   LOSS PER SHARE 

Basic loss per ordinary share is calculated by dividing the loss attributable to equity holders of the company by the weighted average number of ordinary shares in issue during the period. Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. There are currently no dilutive potential ordinary shares.

 
                                 6 months period       6 months 
                                ended 30 June 2021    period ended 
                                                      30 June 2020 
 
 Loss for the period (GBP)                 (5,404)       (216,576) 
 Weighted average number of 
  shares (Unit)                         12,216,298      11,892,857 
 Loss per share (pence)                   (0.04) p        (1.82) p 
 
   6.   RIGHT-OF-USE ASSETS 

The Company has entered into a new operating lease agreement for tenancy of office space. The lease is for a period of 36 months operating lease agreement commencing 1 January 2021 with an option to renew the lease for a further 12 months.

 
                                                   GBP             GBP 
                                               30 June 2021    30 June 2020 
 
 Cost 
 As at 1 January                                     65,151          65,151 
 Additions during the year                           91,267               - 
 De-recognisation due to lease termination         (65,151)               - 
 Accumulated depreciation on lease                   18,098               - 
  termination 
 Value of lease termination                          48,119               - 
 Gain on lease termination                            1,066               - 
                                             --------------  -------------- 
 As at 30 June                                       91,267          65,151 
                                             --------------  -------------- 
 
 Accumulated depreciation 
 As at 1 January                                   (18,097)         (7,240) 
 Addition during the period                          15,211               - 
 De-recognisation due to lease termination           18,097               - 
 As at 30 June                                       15,211          57,911 
                                             --------------  -------------- 
 
   7.   STATED CAPITAL 
 
                                    Number of 
                                     ordinary        GBP 
                                      shares 
 
 As at 1 January 2021               12,150,000   1,188,400 
 Issuance of new ordinary shares     1,200,000      36,000 
 As at 30 June 2021                 13,350,000   1,224,400 
                                   -----------  ---------- 
 

On 21(st) June 2021, issuance were made through the placement of 1,200,000 new ordinary shares at no par value at 3 pence per share.

   8.   OTHER PAYABLES 
 
                            As at        As at 
                            30 June    30 December 
                             2021         2020 
                             GBP          GBP 
 Other creditors             34,852         15,144 
 Deferred income             76,667         16,667 
 Accruals and provision      22,739         23,739 
                          ---------  ------------- 
                            134,258         55,550 
                          ---------  ------------- 
 
   9.   LEASE LIABILITIES 
 
                                       As at         As at 
                                       30 June       30 June 
                                        2021          2020 
                                        GBP           GBP 
 Balance brought forward                48,119           72,000 
 Addition during the year              100,805                - 
 De-recognisation of lease due to     (48,119)                - 
  termination 
 Interest in suspense on new lease     (9,538)          (6,849) 
 Interest expensed                       2,446            1,077 
 Repayment of principal               (16,806)          (8,000) 
 
                                        76,907           58,228 
                                     ---------  --------------- 
 

Lease liabilities are payable as follow:

 
 Within 1 year         33,600   24,000 
 Between 2- 5 years    50,399   40,000 
 

10. SUBSIDIARY UNDERTAKINGS

The details of the subsidiary in the Group are as follows:

 
 Name of company      Country of incorporation   Effective   Principal activities 
                                                  holding 
 Havana Dining        British Virgin               100%      Facilitator for 
  Limited.             Island                                 Group operation 
 
  Davictus World        Malaysia                    100%       Facilitator for 
  Sdn Bhd                                                      Group operation 
 
 
 

11. RELATED PARTY TRANSACTION

The directors are considered to be the key management personnel. Details concerning Directors remuneration can be found below:

 
                                  6 months        6 months 
                                 period ended    period ended 
                                 30 June 2021    30 June 2020 
                                     GBP             GBP 
 Robert Pincock                         7,500           7,500 
 Abd Hadi Bin Abd Majid                 5,000           5,000 
 Maurice James Malcolm Groat            2,000           2,000 
                               --------------  -------------- 
                                       14,500          14,500 
                               --------------  -------------- 
 

The Group entered into a franchise agreement with Havana Café Sdn Bhd ("HCSB"), a company incorporated in Malaysia, where Mr. Abd Hadi bin Abd Majid has substantial interest in HCSB. For the period under review, the Group generated revenue of GBP75,000 from HCSB. At this reporting date, the net franchise fee amount due from HCSB was GBP5,833 comprising trade receivable of GBP82,500 and deferred income of GBP76,667.

12. SUBSEQUENT EVENTS

There are no subsequent events requiring disclosure in these interim financial statements.

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