Ganapati plc - Audited Annual Results year ended 31 January 2019

Ganapati plc - Audited Annual Results year ended 31 January 2019

PR Newswire

London, July 16

17 July 2019

Ganapatiplc

("Ganapati" or "the Company")

Audited Annual Results for the year ended 31 January 2019

Ganapati Plc are pleased to report its audited annual results for the twelve months ended 31 January 2019.

CHAIRMAN'S STATEMENT

I am pleased to announce the financial results for the year ended 31 January 2019 for Ganapati Plc ("Ganapati" or "the Company").
This has been a period of significant progress which has seen global expansion, exciting new product development and the emerging of our wholly owned subsidiary company, GanaEight Coin Limited ("G8C") which will utilise blockchain technology and online casino gaming to unlock economic value through the integration of a blockchain platform.
The Company continues to develop its software ("Apps") for the social media and consumer games markets: BUZZ POP, a free app for communications involving video messaging, Zapppi, an instant billboard commentary service and MY list, a curation service for the building up of lists.
Ganapati is endorsing its position in the entertainment sector by producing a branded product range for the iGaming industry building on Japanese imagery, animation and technology.
An important focus during the year under review has been the work undertaken by G8C who has appointed Grant Thornton to oversee the registration of a Whitepaper with the Malta Financial Services Authority ("MFSA") in the preparation of an innovative method of combining online casinos and blockchain technology so delivering in due course a transparent, accessible online casino (see below under 'G8C Online Casino Platform').
Financial Review
The results for the Group for the year ended 31 January 2019 include:
	2019	2018
	£	£
Loss for the year	33,508,386	14,238,296
Revenue to external customers	3,175,665	2,947,724
Total assets	18,358,534	18,661,961
Cash at bank	2,164,905	1,311,230
Loss per share	(105p)	(45p)
Through its subsidiary company GPJ Venture Capital LLC, Ganapati is attracting the interest of high-net worth investors in Japan through the issuing of three-year bonds which offer an attractive coupon. The Company is pleased to report that the level of renewals by early stage investors reaching the expiration of the first three-years period, continues at a high level.
The Market Trading Facility
The Company shares are traded on the NEX Exchange Growth Market in London.
G8C Online Casino Platform
During the year under review, GanaEight Coin Limited ("G8C"), which is based in Malta, and as explained above, intends to launch an online casino platform utilising blockchain technology. Application for the G8C's Virtual Financial Asset ("VFA") to be admitted to trading on the Distributed Ledger Technology Exchange is expected to be made with the MFSA in the third quarter of 2019 and approval by the competent authority in Malta cannot be guaranteed. However, G8C, through its fellow subsidiary GPJ Venture Capital LLC, has begun the Token Pre-Sale via a Initial Virtual Financial Asset Offering to fund the development of a blockchain platform which is designed to use a token as a chip for payment and utility functions that can be used for online casino betting on the platform. The potential sale of tokens may have a significant benefit on the financing needs of the Group.
Other information and explanations
Board Changes
There were no Board changes during the year under review. Since the year end, on 7 February 2019, we have welcomed Mr Yutaka Iwakiri as a director, and on 31 May 2019 Mr Taku Sawada resigned to pursue his own business interests.
Corporate Governance
Reflecting the expansion of the Group there has been a greatly increased communication between the directors. Mr Toshitaka Nakajima and Mr Hayato Terai have been, and continue to be, regular visitors to the subsidiary operations and visit London frequently for meetings with the Chairman and the Company advisors. The Chairman has visited Malta on two occasions to take part in Company functions.

Post Period End Results

There have been two significant events since the end of the reporting year. Firstly, the Company has achieved its target of generating two new games a month and secondly has been the production of the third draft White Paper being prepared by G8C bringing closer the application to the Malta Regulatory Authorities.

Outlook

This has been a year of real achievement by the very hard-working directors and our staff colleagues. The production of games is accelerating all the time and the G8C Online Casino Platform has the potential to transform Ganapati into a market leader.

Should this happen, and as yet it cannot be guaranteed, the returns in due course for our shareholders will be significant.

On behalf of the Board

Tony Drury

Chairman

15 July 2019

The Directors of Ganapatiplcaccept responsibility for this announcement.

COMPANY CONTACT DETAILS:

Ganapati plc
Tony Drury
Chairman
Telephone: [phone]

NEX EXCHANGE CORPORATE ADVISER:

Alexander David Securities Limited
David Scott -Corporate Finance
James Dewhurst - Corporate Broking
Telephone: [phone]
http://www.ad-securities.com
49 Queen Victoria Street, London EC4N 4SA

GANAPATI PLC
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JANUARY 2019

			2019			2018
	Notes		£			£
Revenue	3		3,175,665			2,947,724
Gross profit			3,175,665			2,947,724
Administrative expenses			(35,979,740)				(17,733,006)
Other operating income	4		1,147,446			844,603
Operating loss	6		(31,656,629)				(13,940,679)
Interest receivable and similar income	10		13			3
Interest payable and similar expenses	11		(133,901)				(297,620)
Loss before taxation			(31,790,517)				(14,238,296)
Tax on loss	12		(1,717,869)			-
Loss for the financial year			(33,508,386)				(14,238,296)
Loss for the financial year is attributable to:
- Owners of the parent company			(33,521,640)				(14,258,881)
- Non-controlling interests			13,254			20,585
			(33,508,386)				(14,238,296)
Earnings per share attributable to owners of the parent company
Basic loss per share (pence)	5		(105) p				(45) p
The Profit and Loss Account has been prepared on the basis that all operations are continuing operations.
The notes on pages 19 to 32 form part of these financial statements.

GANAPATI PLC
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2019

		2019					2018
		£					£
Loss for the year			(33,508,386)					(14,238,296)
Other comprehensive income		-					-
Total comprehensive income for the year			(33,508,386)					(14,238,296)
Total comprehensive income for the year is attributable to:
- Owners of the parent company			(33,521,640)					(14,258,881)
- Non-controlling interests		13,254					20,585
			(33,508,386)					(14,238,296)
The notes on pages 19 to 32 form part of these financial statements.

GANAPATI PLC
GROUP BALANCE SHEET
AS AT 31 JANUARY 2019

					2019						2018
	Notes	£			£			£			£
Fixed assets
Systems development	13				12,212,259						14,535,008
Purchased intangible assets					2,487						-
Goodwill					105,843						-
Tangible assets	14				336,536						247,848
					12,657,125						14,782,856
Current assets
Debtors	16	3,536,504						2,567,875
Cash at bank and in hand		2,164,905						1,311,230
		5,701,409						3,879,105
Creditors: amounts falling due within one year	17		(14,566,073)						(2,794,235)
Net current (liabilities)/assets						(8,864,664)					1,084,870
Total assets less current liabilities					3,792,461						15,867,726
Creditors: amounts falling due after more than one year	18					(68,603,127)						(47,768,206)
Net liabilities						(64,810,666)						(31,900,480)
Capital and reserves
Called up share capital	20				319,926						319,926
Share premium account					396,526						396,526
Capital reserve					598,200
Profit and loss reserves						(66,247,667)						(32,726,027)
Equity attributable to owners of the parent company						(64,933,015)						(32,009,575)
Non-controlling interests					122,349						109,095
						(64,810,666)						(31,900,480)
The financial statements were approved by the board of directors and authorised for issue on 15 July 2019 and are signed on its behalf by:
..............................
Mr A Drury
Director
The notes on pages 19 to 32 form part of these financial statements.

GANAPATI PLC
COMPANY BALANCE SHEET
AS AT 31 JANUARY 2019

					2019						2018
	Notes	£			£			£			£
Fixed assets
Intangible assets	13				5,942,309						7,567,366
Tangible assets	14				175,125						94,030
Investments in subsidiaries	15				514,669						446,779
Intercompany long term loan					14,158,079						-
					20,790,182						8,108,175
Current assets
Debtors	16	14,076,859						9,960,857
Cash at bank and in hand		294,959						60,473
		14,371,818						10,021,330
Creditors: amounts falling due within one year	17		(10,322,357)						(793,987)
Net current assets					4,049,461						9,227,343
Total assets less current liabilities					24,839,643						17,335,518
Creditors: amounts falling due after more than one year	18					(70,991,393)						(49,692,249)
Net liabilities						(46,151,750)						(32,356,731)
Capital and reserves
Called up share capital	20				319,926						319,926
Share premium account					396,526						396,526
Capital reserve					598,200						-
Profit and loss reserves						(47,466,402)						(33,073,183)
Total equity						(46,151,750)						(32,356,731)
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company's loss for the year was £14,393,219 (2018 - £14,346,366 loss).
The financial statements were approved by the board of directors and authorised for issue on 15 July 2019 and are signed on its behalf by:
..............................
Mr A Drury
Director
Company Registration No. 08807827
The notes on pages 19 to 32 form part of these financial statements.

GANAPATI PLC
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2019

			Share capital		Share premium account				Capital reserve		Profit and loss reserves			Total controlling interest			Non-controlling interest			Total
			£		£				£		£			£			£			£
Balance at 1 February 2017			308,197		396,526				-			(18,467,146)			(17,762,423)			88,510			(17,673,913)
	\
Year ended 31 January 2018:
Loss and total comprehensive income for the year			-		-				-			(14,258,881)			(14,258,881)			20,585			(14,238,296)
Issue of share capital			11,729		-				-		-			11,729			-			11,729
Balance at 31 January 2018			319,926		396,526				-			(32,726,027)			(32,009,575)			109,095			(31,900,480)
Year ended 31 January 2019:
Loss and total comprehensive income for the year			-		-				-			(33,521,640)			(33,521,640)			13,254			(33,508,386)
Debt for equity swap			-		-				598,200			-			598,200			-			598,200
Balance at 31 January 2019			319,926		396,526				598,200			(66,247,667)			(64,933,015)			122,349			(64,810,666)
The notes on pages 19 to 32 form part of these financial statements.

GANAPATI PLC
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2019

		Share capital		Share premium account		Capital reserve	Profit and loss reserves					Total
			£	£		£	£					£
Balance at 1 February 2017			308,197	396,526		-				(18,726,817)				(18,022,094)
Year ended 31 January 2018:
Loss and total comprehensive income for the year			-	-		-		(14,346,366)					(14,346,366)
Issue of share capital			11,729	-		-	-					11,729
Balance at 31 January 2018		319,926		396,526		-		(33,073,183)					(32,356,731)
Year ended 31 January 2019:
Loss and total comprehensive income for the year			-	-		-		(14,393,219)					(14,393,219)
Debt for equity swap			-	-		598,200		-					598,200
Balance at 31 January 2019		319,926		396,526		598,200		(47,466,402)					(46,151,750)
	The notes on pages 19 to 32 form part of these financial statements.

GANAPATI PLC
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2019

	Group
	2019	2018
	£	£
Operating activities
Operating loss	(33,508,386)	(14,238,296)
Adjusted for:
Depreciation	48,500	92,181
Amortisation of intangible assets	3,090,368	5,000,000
Foreign taxation	1,717,869	-
Interest received	(13)	(3)
Net finance costs	133,901	297,620
(Increase) / decrease in debtors	(968,599)	(599,791)
(Decrease) / increase in creditors	5,657,185	17,345,679
Net cash used in operating activities	(23,829,175)	7,897,390
Investing activities
Additions to intangible assets	(767,619)	(5,999,773)
Additions to fixed tangible assets	(137,189)	(225,050)
Proceeds on disposal of tangible fixed assets	-	3,779
Net proceeds from other investments and loans		(522)
Interest received		3
Net cash used in investing activities	(904,808)	(6,221,563)
Financial activities
Net proceeds from bonds issued	19,997,701	-
Proceeds from issue of shares	-	11,729
Customer advances	5,589,957	-
Repayment of borrowings	-	(2,300,398)
Net cash used in financing activities	25,587,658	(2,288,669)
Net increase / (decrease) in cash and cash equivalents	853,675	(1,064,781)
Cash and cash equivalents at the beginning of the period	1,311,230	2,376,011
Cash and cash equivalents at the end of the period	2,164,905	1,311,230
The notes on pages 19 to 32 form part of these financial statements.

GANAPATI PLC
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2019

	Company
	2019	2018
	£	£
Operating activities
Operating loss	(14,393,219)	(14,346,366)
Adjusted for:
Depreciation	26,428	14,721
Amortisation of intangible assets	1,625,057	5,000,000
Interest received	(13)	(2)
(Increase) / decrease in debtors	(18,274,082)	(7,355,157)
(Decrease) / increase in creditors	10,006,189	638,725
Net cash used in operating activities	(21,009,640)	(16,048,079)
Investing activities
Additions to intangible assets	-	(1,288,965)
Additions to fixed tangible assets	(107,523)	(108,751)
Acquisition of a subsidiary	(67,890)	-
Interest received	13	3
Net cash used in investing activities	(175,400)	(1,397,714)
Financial activities
Net proceeds from loans received	21,419,526	16,867,725
Proceeds from issue of shares	-	11,729
Repayment of borrowings	-	-
Net cash used in financing activities	21,419,526	16,879,454
Net increase / (decrease) in cash and cash equivalents	234,486	(566,339)
Cash and cash equivalents at the beginning of the period	60,473	628,812
Cash and cash equivalents at the end of the period	294,959	60,473
The notes on pages 19 to 32 form part of these financial statements.