TechFinancials Inc. - Unaudited Results to 31 December 2021
Announcement provided by
TechFinancials Inc. · TECH01/07/2022 07:00
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TechFinancials Inc.
("TechFinancials" or the "Company" or the "Group")
Preliminary non audited Annual Report for the year ended 31 December 2021
The information set out below has been extracted from the Company's draft report and accounts for the year ended 31 December 2021 and has not been audited. A further announcement will be released by the Company on completion of the audit, expected shortly, and any material changes between the financial information set out below and the audited financial information will be disclosed in that announcement.
Financial Highlights
· No Revenues in 2021 as there are no operating businesses left.
· Pre-tax loss attributable to shareholders of
· Cash position of
· Basic earnings per share ('EPS') (
· In October 2021, the Company's sold its subsidiary Cedex Holdings Limited ("Cedex"),.
· In June 2021, the Company stuck off Footies Ltd. ("Footies)
· In 2021, the Company acquired shares in few transactions, of listed companies in the LSE and AIM (Note 28)
Operational Highlights
Operational Cost Reduction
· The Company decided to close all its subsidiaries and initiated the strike-off of its entities in
· The Company sold Cedex in October 2021.
Investment Activities
· The Company invested small amounts in several
· As of today, the Company has only one legal entity - TechFinancials Inc, and as results the costs of operating the Company is set to the minimum possible.
Chairman's Statement
2021 was a year in which the company focused on reducing costs and consolidating its assets. We initiated the closure of all our subsidiaries and sold Cedex.
The Board decided to invest some amounts in listed companies and was able to generate good returns for these investments. The Company will continue to look for new ways to increase its value.
Dividends
The Board will not be recommending a final dividend to the shareholders of the Company for FY2021 (2020: $nil).
Outlook and current trading
The year was a turning point for the Group, where we initiated to closure of all our subsidiaries and consolidated all our assets, while seeking new investment opportunities to increase the value of the Company.
The Group will continue to look for business and investment opportunities to maximize the Company's value, leveraging its available cash.
I would like to thank our shareholders for their continued support in what has been a difficult year.
We look forward to updating the market on our progress in due course.
Eitan Yanuv
Independent Non-Executive Chairman
30 July 2022
Strategic Report
Financial Results
The Company did not have any revenues in 2021 as it shut down all its operation businesses and closed all subsidiaries. The Company will continue to look for business and investment opportunities.
The loss for the period attributable to shareholders of the Company was
The Group's cash position for the period ended 31 December 2021 was
Operations
In October 2021, TechFinancials sold its 99.84% holding of Cedex in order to consolidate cash and reduce operating expenses.
On October 2021 TechFinancials sold its 99.84% owned subsidiary, Cedex Holdings Limited ("Cedex"), to Lem Management Limited ("Buyer"), to consolidate cash and reduce operating expenses. According to the terms of the Agreement, the Company will be entitled to future consideration upon the Buyer succeeding to raise
The Group has closed all its operating activities.
Growth Strategy and Outlook
Since the company has laid off its last few employees in 2020, the Board is focused on attempts to generate value to the shareholders by locating investment opportunities. The Company has invested in
We hope that our new strategy will create a positive impact on the Company's business value for the shareholders.
I would like to thank our shareholders once again for their continued support during this challenging year.
Asaf Lahav
Executive Director
30 July 2022
For further information:
TechFinancials, Inc. |
Tel: +972 54 5233 943 |
Asaf Lahav, Executive Board member |
|
Peterhouse Capital Limited (AQSE Growth Market Advisor and Broker) |
Tel: +44 (0) 20 7469 0930 |
Guy Miller and Mark Anwyl |
|
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2021
|
|
2021 |
2020 |
|
|
US$'000 |
US$'000 |
|
|
|
|
Revenue |
|
- |
1,309 |
Cost of sales |
|
- |
(87) |
|
|
|
|
Gross profit |
|
- |
1,222 |
|
|
|
|
Expenses: |
|
|
|
Research and development |
|
- |
(512) |
Selling and marketing |
|
- |
(53) |
Administrative |
|
(200) |
(662) |
Impairment of goodwill |
|
- |
- |
|
|
|
|
Operating Income (Loss) |
|
(200) |
3 |
|
|
|
|
Bank fees |
|
(9) |
(50) |
Foreign exchange income (loss) |
|
(30) |
70 |
Other financial (expenses) / income |
|
86 |
(1) |
Financing income (expenses |
|
47 |
19 |
|
|
|
|
Other Income (expenses) |
|
|
|
Other non-operational income (expenses) |
|
(152) |
875 |
|
|
|
|
Profit (Loss) before taxation |
|
(305) |
897 |
|
|
|
|
Taxation |
|
(4) |
70 |
Profit (Loss) for the year from continuing operations**
|
|
(309) |
967 |
Gain (loss) from discontinued operations |
|
(181) |
50 |
Capital loss from a sale of subsidiary |
|
____________________(30) |
____________________- |
Gain / (loss) for the year from discontinued operations, net |
|
(211) |
50 |
|
|
|
|
Other comprehensive income |
|
- |
- |
Total comprehensive Profit (Loss)** |
|
(520) |
1,017 |
|
|
|
|
Profit (Loss) attributeable to: |
|
|
|
Owners of the Company |
|
(520) |
997 |
Non-controlling interest |
|
- |
20 |
Profit (Loss) for the period |
|
(520) |
1,017 |
|
|||
|
|||
|
|
2021 |
2020 |
|
|
Cents USD |
Cents USD |
|
|
|
|
Basic |
|
(0.61) |
1.16 |
Diluted |
|
(0.61) |
1.16 |
From continuing operations - Basic |
|
(0.36) |
1.10 |
From continuing operations - Diluted |
|
(0.36) |
1.10 |
From discontinued operations - Basic |
|
(0.25) |
0.06 |
From discontinued operations - Diluted |
|
(0.25) |
0.06 |
Consolidated Statement of Financial Position
As at 31 December 2021
|
|
31 December |
31 December |
|
|
2021 |
2020 |
|
|
US$'000 |
US$'000 |
Non-current assets |
|
|
|
Long-term investments |
|
- |
152 |
|
|
|
|
|
|
- |
152 |
|
|
|
|
Current assets |
|
|
|
Trade receivables, net and other receivables |
|
- |
13 |
Short-term investments |
|
26 |
- |
Cash |
|
920 |
1,419 |
|
|
946 |
1,432 |
|
|
|
|
|
|
|
|
Total Assets |
|
946 |
1,584 |
|
|
|
|
Current liabilities |
|
|
|
Trade and other payables |
|
56 |
88 |
Income tax payable |
|
- |
86 |
|
|
56 |
174 |
|
|
|
|
Non-current liabilities |
|
|
|
Shareholders loan |
|
84 |
84 |
|
|
|
|
Equity |
|
|
|
Share capital |
|
61 |
61 |
Share premium account |
|
12,022 |
12,022 |
Share-based payment reserve |
|
798 |
798 |
Accumulated profits / (losses) |
|
(12,075) |
(11,555) |
Equity attributable to owners of the Company |
|
806 |
1,326 |
Non-controlling interests |
|
- |
- |
Total equity |
|
806 |
1,326 |
|
|
|
|
Total Equity and Liabilities |
|
946 |
1,584 |
|
|
|
|
Consolidated statements of changes in equity
For the year ended 31 December 2021
|
Share capital
(Note 14)
|
Share Premium
(Note 14)
|
Share based payment reserve
(Note, 15)
|
Revaluation reserve
(Note, 9)
|
Accumulated profits/ (losses)
|
Total
|
Non -controlling interests
(Notes 18)
|
Total
|
|
US$'000 |
US$'000 |
US$'000 |
US$'000 |
US$'000 |
US$'000 |
US$'000 |
US$'000 |
|
|
|
|
|
|
|
|
|
Balance at 1 January 2020 |
|
|
934 |
|
(12,459) |
558 |
(249) |
309 |
Balance at 1 January 2020 |
61 |
12,022 |
934 |
|
(12,459) |
588 |
(249) |
309 |
|
|
|
|
|
|
|
|
|
Total comprehensive income (expense) for the year |
- |
- |
- |
- |
997 |
997 |
20 |
1,017 |
|
|
|
|
|
|
|
|
|
Gain on revaluation of cryptocurrency digital assets in the year
|
- |
- |
- |
577 |
577 |
|
|
577 |
Disposal of cryptocurrency digital assets in the year
|
- |
- |
- |
(577) |
(577) |
|
|
(577) |
Purchase of NCI in Footies during the year |
- |
- |
- |
- |
(229) |
(229) |
229 |
- |
|
|
|
|
|
|
|
|
|
Share based payment |
- |
- |
6 |
|
(6) |
- |
- |
- |
Transfer of Share based payment reserve on lapsed options |
- |
- |
(142) |
|
142 |
- |
- |
- |
|
|
|
|
|
|
|
|
|
Balance at 31 December 2020 |
61 |
12,022 |
798 |
- |
(11,555) |
1,326 |
- |
1,326 |
|
|
|
|
|
|
|
|
|
Total comprehensive loss for the year |
- |
- |
- |
- |
(520) |
(520) |
- |
(520) |
Balance at 31 December 2021 |
61 |
12,022 |
798 |
- |
(12,075) |
806 |
- |
806 |
Consolidated statements of cash flows
For the year ended 31 December 2021
The consolidated statements of cash flows for the Group for the years ended 31 December 2020 and 31 December 2021 are set out below:
|
|
Years ended 31 December |
|
|
|
2021 |
2020 |
|
|
US$'000 |
US$'000 |
|
|
|
|
Cash Flows from operating activities |
|
|
|
Profit (Loss) before tax for the period |
|
(516) |
946 |
|
|
|
|
Adjustment for: |
|
|
|
Amortisation of intangible assets |
|
- |
75 |
Impairment of intangible assets, net |
|
- |
37 |
Gain on bargain purchase |
|
|
(309) |
Depreciation of property and equipment |
|
- |
4 |
Revaluation of traded securities |
|
(87) |
|
Share option charge |
|
- |
6 |
Waiver of loan due to NCI |
|
- |
(51) |
Loss on disposal of subsidiary |
|
30 |
- |
Capital loss on disposal of property and equipment |
|
- |
12 |
Gain from revaluation of intangible assets |
|
- |
(577) |
Impairment of investment |
|
152 |
- |
Income tax expenses |
|
- |
92 |
|
|
|
|
Operating cash flows before movements in working capital: |
|
|
|
Decrease in trade and other receivables |
|
13 |
589 |
Decrease in long term receivables |
|
- |
- |
Increase (decrease in trade and other payables |
|
15 |
(1,453) |
R&D tax credit received |
|
- |
163 |
Income tax paid |
|
(92) |
(109) |
Net cash used for operating activities |
|
(485) |
(575) |
|
|
|
|
Cash flows from investing activities |
|
|
|
Decrease in restricted bank deposits |
|
- |
71 |
Consideration from sale of intangible assets |
|
- |
974 |
Net cash acquired on acquisition (note A) |
|
- |
649 |
Net cash on disposal of a subsidiary |
|
(75) |
- |
Loans eliminated from obtaining control of a subsidiary |
|
- |
(296) |
Purchase of traded securities |
|
(102) |
- |
Sale of traded securities |
|
163 |
- |
Funds advanced under SAFE agreement |
|
- |
(152) |
Net cash generated from (used in) investing activities |
|
(14) |
1,246 |
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents |
|
(499) |
671 |
Cash and equivalents at beginning of period |
|
1,419 |
672 |
Effect of changes in exchange rates on Cash |
|
- |
76 |
Cash and equivalents at end of period |
|
920 |
1,419 |
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