31 May 2019
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 28th February 2019.
Results and Review of Business
The loss for the period was GBP68,045 (2018: GBP109,865) representing a loss
per share of 0.01p (2018: 0.01p). The losses primarily reflect the costs
associated with maintaining a public listing and administration costs.
The value of our investment portfolio increased to GBP1,257,406 (2018:
GBP1,013,769) due to further investments and our overall net asset value
increased to GBP1,624,475 (2018: GBP1,541,744)
On the 22nd February 2019 the Company announced that it acquired 60% of the
issued share capital of MEI Home (M) Sdn. Bhd (Meihome) for a total
consideration of One Million Five Hundred Thousand Ringgit Malaysia
(RM1,500,000), which is approximately GBP281,955.
During the period, the Company raised a total of GBP187,500 by way of
subscription.
Post Balance Sheet Events
There have been no material events, transactions or developments within the
post balance sheet period.
Change from investment Company to Operating Company
With my appointment on the 1st March 2015 and subsequent appointment of Tee
Lian Hing on the 1st August 2016 the Company gained access to the Asian Market
through our network and skills in direct marketing and online sales. Early
Equity's investment strategy was initially not geographically or sector
focussed, however since 2015 has played to its strengths in Asia.
In December 2015 Early Equity's current strategy began to evolve when it
acquired an initial 32% stake in Yicom with a further 15% stake acquired in
August 2017 (totaling the current stake of 47%). Yicom is the sole importer and
patent holder of a series of healthcare products from various countries and in
particular China. Following this acquisition, the Management have focused more
specifically on developing the sales of products in Asia, with a focus on
Malaysia, Thailand and China. Products include food and beverage, skincare
products and nutritional health supplements. This was followed up by an
acquisition of a 4% minority holding in Early Infinity in August 2017, which is
the core distribution company which Yicom uses to sell its products.
As the health supplements and distribution model has developed and shown signs
of strong growth, the Company has expanded its involvement and the Early Equity
management team has become more involved in the activities of Yicom and EI and
has made further acquisitions in the sector.
As a result of the acquisition of MEI Home the Board have reviewed the
activities of the Company. Whist to date the Company has acted as an
investment company with a generalist acquisition policy in recent years the
acquisitions have tended to be in one generic area. Most of the businesses
have a focus on products for the Asian market with an emphasis on direct and
indirect sales of health supplements and medical devices.
In addition to the investments the Company has made the Board is now working on
a more active basis with the Directors of the existing investments of Yicom, EI
Holdings and MEI Home. As a result the Board has agreed to enter into joint
venture agreements to reflect the management time spent on these activities.
In addition, as the Executive Directors are now engaged with the operations the
Company has notified NEX Exchange that it now believes it should be treated as
an operating company, not an investment company for the purpose of the NEX
Exchange Rules.
The Company proposes to look for buyers of its activities which do not fall
into the sphere of health supplements, direct and indirect marketing and
medical devices. The Board will update investors as to the progress of these
activities in due course.
Outlook
The Company is pleased to report that year on year, Yicom Global Sdn. Bhd.
(Yicom) has continued to increase its network and sales volumes. The growth is
represented by increased sales in Malaysia and also by EI Holdings expanding
their global network of sales agents. EI Holdings are now operational in
Malaysia, Singapore, Taiwan, Indonesia, Thailand, Hongkong and Japan.
The Board hope to benefit from increasing revenue streams generated by ongoing
dividend income from Yicom and MEIhome.
The Board are continuing the process of applying for a Standard Listing of the
Company's Ordinary Shares on the Main Market of the London Stock Exchange.
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 28 FEBRUARY 2019
6 months to 6 months to
28 February 2019 29 February
2018
CONTINUING OPERATIONS GBP GBP
TURNOVER/DIVIDEND INCOME 38,561 16,014
OTHER INCOME - -
ADMINISTRATIVE EXPENSES (110,836) (88,348)
OTHER OPERATING (EXPENSES) GAIN 5,639 (34,342)
FINANCE COSTS (1,409) (3,189)
(LOSS) BEFORE TAX (68,045) (109,865)
INCOME TAX -
(LOSS) FOR THE YEAR / PERIOD (109,865)
(68,045)
OTHER COMPREHENSIVE INCOME / (LOSS)
Loss on fair value changes of - -
available-for-sale financial assets
Reclassification of fair value gain on - -
disposal
of available-for-sale financial assets
OTHER COMPREHENSIVE INCOME / (LOSS) - -
FOR THE YEAR / PERIOD
TOTAL COMPREHENSIVE LOSS FOR THE YEAR (68,045) (109,865)
/ PERIOD
BASIC AND DILUTED LOSS PER SHARE (0.01)p (0.01)p
6 months to 6 months to
CONSOLIDATED STATEMENT OF FINANCIAL 28 February 2019 29 February
POSITION AS AT 28 FEBRUARY 2019 2018
GBP GBP
INVESTMENTS
Available-for-sale financial assets 1,257,406 1,013,769
CURRENT ASSETS
Trade and other receivables 47,460 6,127
Cash and cash equivalents 276,970 428,837
Other Receivables 42,796 98,361
367,226 533,325
CURRENT LIABILITIES
Trade and other payables (24,717) 100
Accrued Expenses 21,678 5,250
Deferred Tax Liabilities 3,756 -
Provision for Taxation (560) -
(157) (5,350)
NET CURRENT ASSETS / (LIABILITIES) 367,069 527,975
NET ASSETS 1,624,475 1,541,744
REPRESENTING:-
Share capital 1,159,623 972,123
Share premium 1,496,090 1,496,090
2,655,713 2,468,213
Non-controlling interest 59,284 -
Fair value reserve 142,983 133,364
Accumulated losses (1,233,505) (1,059,833)
SHAREHOLDERS FUNDS 1,624,475 1,541,744
The interim financial information for the six months ended 28 February 2019 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 2018.
The Directors of the Company accept responsibility for the announcement.
--ENDS-
Enquiries:
Early Equity Plc
Greg Collier
Tel: +44 (0)78 3018 2501
NEX EXCHANGE CORPORATE ADVISER:
Alexander David Securities Limited
David Scott -Corporate Finance
James Dewhurst - Institutional Sales
Telephone: +44 (0) 20 7448 9820
http://www.ad-securities.com
49 Queen Victoria Street, London EC4N 4SA
