INTERIM FINANCIAL STATEMENTS ENDED 30 JUNE 2023

daVictus plc

04 September 2023

 

4 September 2023

DAVICTUS PLC

("DAVICTUS" OR "THE COMPANY")

UNAUDITED INTERIM FINANCIAL STATEMENTS ENDED 30 JUNE 2023

daVictus plc, (LSE: DVT), a company established to seek business opportunities in the food and beverage sector in Asia, announces its unaudited interim financial statement for the period ended 30. June 2023.

The Interim report is also available on the Company's website at: http://www.davictus.co.uk .

For further information, please contact:

Robert Pincock

[e-mail]

[phone]

CHAIRMAN'S STATEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2023

I am presenting the interim financial statements of Davictus PLC ("the Company" or "Davictus") for the six-month period ending on June 30, 2023.

Davictus continues to oversee its two franchisees located in Kuala Lumpur, Malaysia, and Bangkok, Thailand. The board views their performance as being moderate and thus we are cautiously considering potential expansion in these markets. We might entertain inquiries from Singapore, Indonesia, Philippines, and Vietnam in the coming years, although our approach to expansion remains measured.

In recent months, we have been exploring opportunities to extend our restaurant management services beyond our flagship Havana Dining franchise. This exploration is still ongoing, and updates will be shared as progress is made. We hope that these considerations will tap into our industry expertise, potentially bringing in new revenue streams for the Company.

Our commitment to supporting the well-being and growth of the employees working within our franchise network, remains steadfast. We are dedicated to providing the necessary support for smooth operations.

We maintain a cautiously optimistic view of the Company's future, underpinned by our dedication to operational excellence and industry best practices. This approach positions us for growth and sustained profitability.

The board expresses its gratitude to all stakeholders for their ongoing support.

Abd Hadi Bin Abd Majid

Chairman

4 September  2023

DIRECTORS' STATEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2023

For the reporting period under review, the Company reported a net profit of £63,598. At 30 June 2023, the Company had cash in bank of £171,204.

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 2022, 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 statement have been prepared in accordance with IAS 34, as adopted by the United Kingdom. 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.

Abd Hadi Bin Abd Majid

Director

4 September 2023

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2023

	Notes	6 months period ended		6 months period ended
		30-Jun-23		30-Jun-22
		(Unaudited)		(Unaudited)
		£		£
Revenue	3	150,000		150,000
Cost of sales		-		-
Gross profit		150,000		150,000
Operating expenses		(86,402)		(85,995)
Operating Profit		63,598		64,005
Other income		-		-
Gain on foreign exchange		-		-
Interest income		-		-
Finance expenses		-		-
Profit before taxation		63,598		64,005
Tax expense	4	-		-
PROFIT FOR THE YEAR ATTRIBUTABLE TO EQUITY SHAREHOLDERS		63,598		64,005
OTHER COMPREHENSIVE INCOME Loss on disposal of investment		-		(9,159)
TOTAL COMPREHENSIVE PROFIT FOR THE YEAR		63,598		54,846
Basic and diluted profit per share (pence)	5	0.48 p		0.41 p

                                            CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

                        AS AT 30 JUNE 2023

		As at		As at		As at
		30-Jun-23		30-Jun-22		31-12-22
	Notes	(Unaudited)		(Unaudited)		Audited
		£		£		£
Non-current assets
Right-of-use asset	6	15,211		45,633		30,422
		15,211		45,633		30,422
Current assets
Trade receivables		285,524		-		200,192
Other receivables		27,571		9,566		-
Cash and cash equivalents		171,204		242,849		260,308
		484,299		252,415		460,500
Total assets		499,510		298,048		490,922
Equity attributable to equity holders of the company
Share capital	7	1,224,400		1,224,400		1,224,400
Accumulated losses		(945,037)		(1,173,258)		(1,008,635)
Total equity		279,363		51,142		215,765
Non-current liabilities
Lease liabilities	9	-		32,420		-
		-		32,420		-
Current liabilities	8
Other payables		30,290		(5,350)		29,404
Deferred Income		173,333		204,167		213,333
Amount owing to directors		-		318		-
Lease liabilities	9	16,524		15,351		32,420
		220,147		214,486		275,157
Total equity and liabilities		499,510		298,048		490,922

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW

FOR THE SIX MONTHS ENDED 30 JUNE 2023

	As at		As at
	30-Jun-23		30-Jun-22
	(Unaudited)		(Unaudited)
	£		£
Cash flow from operating activities
Operating Profit	63,598		54,846
Adjustment for:
Loss on disposal of investment	-		9,159
Depreciation of right-of-use-assets	15,211		15,211
Interest on lease liabilities	904		1,976
	79,713		81,192
Changes in working capital
(Increase) / Decrease in receivables	(112,903)		37,895
(Decrease) / Increase in other payables	(39,114)		43,613
Increase in amount due to directors	-		318
Net cash flow used in operating activities	(152,017)		81,826
Cash flows from financing activities
Proceed from disposal of investment	-		8
Repayment on lease liability	(16,800)		(16,801)
Net cash generated from financing activities	(16,800)		(16,793)
Net increase in cash and cash equivalents	(89,104)		146,225
Cash and cash equivalents at beginning of period	260,308		96,624
Cash and cash equivalents at end of period	171,204		242,849

CONDENSED CONSOLIDATED STATEMENT CHANGES OF EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2023

Period from 1 January 2023 to 30 June 2023

	Stated capital		Accumulated losses		Total
	£		£		£
As at 1 January 2023	1,224,400		(1,008,635)		215,765
Profit for the period	-		63,598		63,598
Total comprehensive profit for the period	-		63,598		63,598
As at 30 June 2023	1,224,400		(945,037)		279,363

Period from 1 January 2022 to 30 June 2022

	Stated capital		Accumulated losses		Total
	£		£		£
As at 1 January 2022	1,224,400		(1,237,270)		(12,870)
Accumulated losses of subsidiary disposed during the year			9,166		9,166
	1,224,400		(1,228,104)		(3,704)
Loss on disposal of investment	-		(9,159)		(9,159)
Profit for the period	-		64,005		64,005
Total comprehensive profit for the period	-		54,846		54,846
As at 30 June 2022	1,224,400		(1,173,258)		51,142

For the year ended 31 December 2022

	Stated capital		Accumulated losses		Total
	£		£		£
As at 1 January 2022	1,224,400		(1,237,270)		(12,870)
Accumulated losses of subsidiary disposed during the year			9,166		9,166
	1,224,400		(1,228,104)		(3,704)
Loss on disposal of investment			(9,159)		(9,159)
Profit for the year	-		228,628		228,628
Total comprehensive profit for the year	-		219,469		219,469
As at 31 December 2022	1,224,400		(1,008,635)		215,765

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR SIX MONTHS ENDED 30 JUNE 2023

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.

On 15 March 2020, the Company acquired a dormant British Virgin Island incorporated company as a wholly owned subsidiary for purpose of business operation (together in this financial report referred as the 'Group').

2.   ACCOUNTING POLICIES

Basis of preparation

The interim financial statements for the six-month period ended 30 June 2023 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 2022.

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 2022, which have been prepared in accordance with International Financial Reporting Standards as adopted by the United Kingdom.

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

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 United Kingdom. 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 statements 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.

The Covid-19 pandemic has been unprecedented in scale and impact, and the Group have taken swift and decisive action to protect our customers, colleagues, franchisees and their staff and the communities in which the Group operates, by implementing the necessary steps to safeguard the business through the crisis, in line with the government guidelines.

The significant impact of Covid-19 to the Group business is summarised below:

·      Delay in franchisee restaurant engagement. - Due to MCO (movement control order) announced by Malaysian Government, the launch the new franchise restaurants was being delayed

·      Working capital inflow of fund are lagging behind initial plan. The Group has arranged additional short-term financing from directors if required to support continuity of business operations

·      This might impact the business revenue of franchisees, and reduce the royalty payment that is by percentage of gross revenue sales.

Based on the current working capital forecast, the Group is unlikely to need additional funds within twelve months of the date of approval of these financial report in order to maintain its proposed work levels and to continue successfully managing its cash resources. After making enquiries and considering the assumptions upon which the forecasts have been based, 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.

Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured, regardless of when the payment is made. Revenue is measured at the fair value of consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duty.

Fees receivable from franchisee according to franchise agreement at which time the Group has performed its obligation. Fees receivable in advance are stated on the Consolidated Statement of Financial Position as deferred income.

Leases

The Group assesses whether a contract is or contains a lease, at the inception of the contract. The Group recognises a right-of-use asset and corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for low-value assets and short-term leases with 12 months or less. For these leases, the Group recognises the lease payments as an operating expense on a straight-line method over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed.

The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use assets and the associated lease liabilities are presented as a separate line item in the statement of financial position.

The right-of-use asset is initially measured at cost. Cost includes the initial amount of the corresponding lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred, less any incentives received.

The right-of-use asset is subsequently measured at cost less accumulated depreciation and any impairment losses, and adjustment for any remeasurement of the lease liability. The depreciation starts from the commencement date of the lease. If the lease transfers ownership of the underlying asset to the Group or the cost of the right-of-use asset reflects that the Group expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. Otherwise, the Group depreciates the right-of-use asset to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate.

The lease liability is subsequently measured at amortised cost using the effective interest method. It is remeasured when there is a change in the future lease payments (other than lease modification that is not accounted for as a separate lease) with the corresponding adjustment is made to the carrying amount of the right-of-use asset or is recognised in profit or loss if the carrying amount has been reduced to zero.

3.   REVENUE

The Group revenue are derived from franchise related fees including brand licence, management fee and royalties according to Restaurant Franchise Agreement. For the reporting period, revenue contributions are from a franchisee located in Kuala Lumpur, Malaysia and Bangkok Thailand.

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.

5.   PROFIT / (LOSS) PER SHARE

Basic profit / (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 ended	6 months period ended
	30-Jun-23	30-Jun-22
	£	£
Profit for the period	63,598	54,846
Weighted average number of shares (Unit)	13,350,000	13,350,000
Profit per share (pence)	0.48 p	0.41 p

6.   RIGHT-OF-USE ASSETS

The Company has entered into a non-cancellable 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.

	£
Cost	91,266
Accumulated depreciation	(76,055)
As at 30 June 2023	15,211

7.   STATED CAPITAL

				Number of ordinary shares		£
As at 1 January 2023				13,350,000		1,224,400
As at 30 June 2023				13,350,000		1,224,400

8.   CURRENT LIABILITIES

		6 months period ended		6 months period ended
		30-Jun-23		30-Jun-22
		£		£
Other Creditors		30,290		(5,350)
Deferred Income		173,333		204,167
Amount owing to Director		-		318
Lease Liability		16,524		15,351
		220,147		214,486

9.   LEASE LIABILITIES

	6 months period ended		6 months period ended
	30-Jun-23		30-Jun-22
	£		£
As at 1 January	33,602		67,203
Addition during the year	-		-
De-recognition of lease due to termination	-		-
Interest in suspense	(1,181)		(4,607)
Interest expensed	904		1,976
Repayment of principal	(16,801)		(16,801)
	16,524		47,771

           Lease liabilities are payable as follow:

Within 1 year	16,524				15,351
Between 2 - 5 years	-				32,420

10. RELATED PARTY TRANSACTION

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

	6 months period ended 30-Jun-23		6 months period ended 30-Jun-22
	£		£
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

11. SUBSEQUENT EVENTS

There were no subsequent events after the reporting period.

 

END