TIDMIKIV
RNS Number : 6379U
Ikigai Ventures Limited
29 March 2023
29 March 2023
IKIGAI VENTURES LIMITED
(" Ikigai " or the " Company ")
Unaudited Interim Results
Ikigai, (LON:IKIV) an investment company established to acquire
businesses focused on having a strong positive social impact ,
announces its unaudited interim results for the six months ended 31
December 2022.
For further information please contact:
Ikigai Ventures Limited Via IFC
Nick Bryan-Brown, CEO
Cosign Limited (Company Secretary) +44 (0)1481 211 000
Amit Taylor
Strand Hanson Limited (Financial Advisor)
Rory Murphy / Abigail Wennington +44 (0) 207 409 3494
Novum Securities (Broker)
Colin Rowbury +44 (0) 207 399 9400
IFC Advisory Limited (Financial PR
and IR) +44 (0) 203 934 6630
Tim Metcalfe
Zach Cohen
DIRECTORS' REPORT
FOR THE SIX MONTH PERIOD FROM 01 JULY 2022 TO 31 DECEMBER
2022
The directors submit the half year report and unaudited
financial statements of Ikigai Ventures Limited (the "Company")
which is incorporated in Guernsey, for the six month period ended
31 December 2022.
PRINCIPAL ACTIVITY
The principal activity of the Company is that of an investment
company established to acquire businesses focused on having a
strong positive social impact. There has been no change in the
activity of the Company during the period.
PUBLIC LISTING
During the period the company was admitted to the main market
for listed securities of the London Stock Exchange under the ticker
symbol "IKIV" with shares registered with an ISIN of GG00BPG8J619
and SEDOL of BPG8J61. The Company issued 4,180,000 Ordinary Shares
on admission raising GBP2,090,000 to pursue the Company's strategy
through paying the costs of admission, the costs of due diligence
associated with a potential acquisition and to pay towards the
costs of re-admission on an acquisition.
BUSINESS UPDATE
Since its listing, the Company has actively sought potential
international acquisition targets both in Asia and in Europe.
Companies operating in a range of sectors have been reviewed and
early stage discussions have been held with a number of them,
including businesses operating in the energy transition, waste
recycling and surgical devices sectors.
Financial and equity market conditions remain challenging and
the Company has continued to take soundings from the investment
community in order to match investor appetite with the
opportunities available.
Our investment focus remains relatively wide within the broader
ESG market segment and we will continue to seek out and develop
attractive potential acquisition targets and will provide further
information to shareholders when appropriate.
DIVIDS
The directors do not recommend the payment of a dividend.
RESULTS
The results of the Company for the six month period ended 31
December 2022 are shown in the Statement of Comprehensive
Income.
RISK FACTORS
Market conditions
Current volatile financial and equity market conditions
represent a potential threat to the ability of the Company to
complete the acquisition of a suitable target company and secure
readmission.
Challenges in acquiring a suitable target
The Company's strategy and future success is dependent to a
significant extent on its ability to identify a suitable
acquisition opportunity and to execute a reverse takeover of the
chosen acquisition target on attractive terms consistent with the
Company's strategy. The Company cannot currently predict the period
of time it will take to identify a suitable acquisition. If a
target is not identified within 18 months of the Placement, further
funds may need to be raised. As at 31 December 2022, Ikigai's
unaudited net assets were GBP1,414,928 and its cash at bank was
GBP1,441,043.
Russia/Ukraine
The Company has not been directly impacted by the current war in
Ukraine nor by the sanctions imposed on the Russian Federation but
may face inflationary pressure as a result of the worldwide impact
on global economies.
DIRECTORS
The directors of the Company during the period and for the
period to the date these financial statements were signed were as
follows:
Mr Ashley Charles Paxton
Mrs Meriel Catherine Lenfestey
Mr Nicholas Harris Bryan-Brown
UNAUDITED STATUS
These interim financial statements are not audited.
DIRECTORS' RESPONSIBILITIES
FOR THE SIX MONTH PERIOD FROM 1 JULY 2022 TO 31 DECEMBER
2022
The directors are responsible for preparing financial statements
for each financial period which give a true and fair view, in
accordance with the applicable Guernsey law and International
Financial Reporting Standards ("IFRS") of the state of affairs of
the Company and of the profit or loss of the Company for that
period.
In preparing these financial statements, the directors are
required to:
i) select suitable accounting policies and then apply them
consistently;
ii) make judgements and accounting estimates that are reasonable
and prudent;
iii) state whether applicable IFRS accounting standards have
been followed, subject to any material departures disclosed
and explained in the financial statements; and
iv) prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Company
will continue in business.
The directors confirm that they have complied with the above
requirements in preparing the financial statements.
The directors are responsible for keeping proper accounting
records that disclose with reasonable accuracy at any time the
financial position of the Company and enable them to ensure that
the financial statements comply with the Companies (Guernsey) Law,
2008. They are also responsible for safeguarding the assets of the
Company and hence for taking reasonable steps for the prevention
and detection of fraud and other irregularities.
The directors confirm that, to the best of their knowledge:
- The condensed set of financial statements, which have been
prepared in accordance with IFRS, give a true and fair
view of the assets, liabilities, financial position and
loss of the Company
- The interim management report includes a fair review of
the important events and risks required by DTR 4.2.7 R
and a fair review of the material related party transactions
required by DTR 4.2.8 R
APPROVED BY THE BOARD OF DIRECTORS
Nicholas Bryan-Brown Ashley Paxton Meriel Lenfestey
Director Director Director
29 March 2023
STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTH PERIOD FROM 01 JULY 2022 TO 31 DECEMBER
2022
Six months to Six months to
31 December 2022 31 December 2021
Notes GBP GBP GBP GBP
INCOME
Bank interest 5,282 -
5,282 -
EXPENSES
Administration fees 55,524 37,082
Legal and professional
fees 197,153 222,505
Annual registration fees 250 -
Directors' remuneration 69,228 1,384
Insurance 11,499 5,850
Commission fees 6,500 -
Bank charges 795 160
Sundry expenses 2,406 945
343,355 267,926
OPERATING LOSS GBP (338,073) GBP (267,926)
(Loss) / profit on foreign
exchange (1,376) 3
COMPREHENSIVE LOSS FOR THE
PERIOD GBP (339,449) GBP (267,923)
========== ==========
EARNINGS PER SHARE:
Loss per share GBP (0.02) GBP (0.02)
Diluted loss per share GBP (0.02) GBP (0.02)
There were no items of other comprehensive income during the
period, accordingly, only a single statement of comprehensive
income is presented.
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
As at As at
Notes 31 December 2022 30 June 2022
GBP GBP GBP GBP
CURRENT ASSETS
Other current assets 4 15,400 8,376
Cash and cash equivalents 1,441,043 116,157
1,456,443 124,533
CURRENT LIABILITIES
Trade and other payables 5 41,515 143,023
41,515 143,023
NET CURRENT ASSETS / (LIABILITIES) 1,414,928 (18,490)
NET ASSETS / (LIABILITIES) GBP 1,414,928 GBP (18,490)
========== ==========
CAPITAL AND RESERVES
SHARE CAPITAL 7 - -
SHARE PREMIUM 7 2,333,867 561,000
ACCUMULATED LOSSES (918,939) (579,490)
GBP 1,414,928 GBP (18,490)
========== ==========
STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTH PERIOD FROM 01 JULY 2022 TO 31 DECEMBER
2022
Share Share Accumulated Total
Capital Premium Losses Equity
Notes GBP GBP GBP GBP
AT 01 JULY 2021 - - - -
Issued shares 7 - 560,000 - 560,000
Loss for the period - - (267,923) (267,923)
AT 31 DECEMBER 2021 - 560,000 (267,923) 292,077
========= ========== ============ ==========
AT 01 JULY 2022 - 561,000 (579,490) (18,490)
Issued shares 7 - 2,090,000 - 2,090,000
Costs attributable
to issue of shares 7 - (317,133) - (317,133)
Loss for the period - - (339,449) (339,449)
AT 31 DECEMBER 2022 - 2,333,867 (918,939) 1,414,928
========= ========== ============ ==========
STATEMENT OF CASH FLOWS
FOR THE SIX MONTH PERIOD FROM 01 JULY 2022 TO 31 DECEMBER
2022
Six months Six months to
to 31 December
31 December 2021
2022
GBP EUR
CASH FLOWS FROM OPERATING
ACTIVITIES
Total comprehensive loss
for the period (339,449) (267,923)
Adjustments for:
Share-based payment charge - 50,000
(Increase) in other current
assets (7,024) (18,050)
(Decrease)/increase in trade
and other payables (101,508) 140,018
NET CASH USED IN OPERATING
ACTIVITIES (447,981) (95,955)
============= ==============
NET CASH USED IN INVESTING
ACTIVITIES - -
============= ==============
CASH FLOWS FROM FINANCING
ACTIVITIES
Net proceeds from issuance
of share capital 1,772,867 510,000
NET CASH GENERATED FROM
FINANCING ACTIVITIES 1,772,867 510,000
============= ==============
NET CHANGE IN CASH AND
CASH EQUIVALENTS 1,324,886 414,045
Cash and cash equivalents
at the beginning of the
period 116,157 -
CASH AND CASH EQUIVALENTS
AT THE OF THE PERIOD 1,441,043 414,045
============= ==============
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD FROM 01 JULY 2022 TO 31 DECEMBER
2022
1. General Information
Ikigai Ventures Limited (the "Company") is a private company
limited by shares incorporated on 28 May 2021 in Guernsey under the
Companies (Guernsey) Law, 2008, as amended and is registered in
Guernsey. The address of the Company's registered office is
Martello Court, Admiral Park, St Peter Port, Guernsey, GY1 3HB and
the Company's registration number is 69265. On 15 September 2022
the company was admitted to the main market for listed securities
of the London Stock Exchange under the ticker symbol "IKIV" with
shares registered with an ISIN of GG00BPG8J619 and SEDOL of
BPG8J61.
Statement of Compliance
These financial statements give a true and fair view, comply
with the Companies (Guernsey) Law, 2008, as amended and were
prepared in accordance with the International Financial Reporting
Standards ("IFRS") which include standards and interpretations
approved by the International Accounting Standards Board, including
International Accounting Standards ("IAS") and interpretations
issued by the International Financial Reporting Interpretations
Committee who replaced the Standards Interpretations Committee.
2. Basis of accounting
The financial statements have been prepared under the historical
cost convention, modified to include certain items at fair value,
and in accordance with International Financial Reporting Standards
("IFRS") which includes standards and interpretations approved by
the International Accounting Standards Board.
The functional and presentation currency of these financial
statements is Pounds Sterling.
The principal accounting policies are summarised below. They
have all been applied consistently throughout the period and to the
preceding period.
Significant Accounting Policies
2.1 Financial Instruments
Financial Assets
The Company's financial assets are cash and cash equivalents and
other current assets. The classification is determined by
management at initial recognition and depends on the purpose for
which the financial assets are acquired.
The Company initially recognises receivables issued when the
Company becomes a party to the contractual provisions of the
instrument. Financial assets are initially recognised at fair value
plus transaction costs for all financial assets not carried at fair
value through profit or loss.
Receivables are subsequently carried at amortised cost using the
effective interest method. Amortised cost is the initial
measurement amount adjusted for the amortisation of any differences
between the initial and maturity amounts using the effective
interest method. Loans and receivables are reviewed for impairment
assessment.
Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits held
at call with banks, other short-term highly liquid investments with
original maturities of three months or less any bank
overdrafts.
Other current assets
Debtors principally consist of prepayments which are carried at
amortised cost.
The Company assesses at each end of the reporting period whether
there is objective evidence that a financial asset or group of
financial assets is impaired. A financial asset or group of
financial assets is impaired and impairment losses are incurred
only if there is objective evidence of impairment as a result of
one or more events that have occurred after the initial recognition
of the asset (a 'loss event') and that loss event (or events) has
an impact on the estimated future cash flows of the financial asset
or group of financial assets that can be reliably estimated.
The amount of the loss is measured as the difference between the
asset's carrying amount and the present value of estimated future
cash flows (excluding future credit losses that have not been
incurred) discounted at the financial asset's original effective
interest rate. The carrying amount of the asset is reduced and the
amount of the loss is recognised in profit or loss.
If, in a subsequent period, the amount of the impairment loss
decreases and the decrease can be related objectively to an event
occurring after the impairment was recognised (such as an
improvement in the debtor's credit rating), the reversal of the
previously recognised impairment loss is recognised in profit or
loss.
Financial assets are derecognised when the rights to receive
cash flows from the financial assets have expired or have been
transferred and the Group has transferred substantially all risks
and rewards of ownership or has not retained control of the
financial asset.
Financial Liabilities
All financial liabilities are initially recognised on the trade
date when the entity becomes party to the contractual provisions of
the instrument.
Financial liabilities which includes trade and other payables
and are recognised initially at fair value, net of directly
attributable transaction costs. Financial liabilities are
subsequently stated at amortised cost, using the effective interest
method.
Financial liabilities are classified as current liabilities if
payment is due to be settled within one year or less after the end
of the reporting period (or in the normal operating cycle of the
business, if longer), or the Company does not have an unconditional
right to defer settlement of the liability for at least twelve
months after the end of the reporting period. Otherwise, these are
presented as non-current liabilities.
Financial liabilities are derecognised from the statement of
financial position only when the obligations are extinguished
either through discharge, cancellation or expiration. The
difference between the carrying amount of the financial liability
derecognised and the consideration paid or payable is recognised in
profit or loss.
2.2 Equity
Share capital represents the nominal value of shares that have
been issued.
Equity-settled share-based payment transactions are measured at
fair value (excluding the effect of non market-based vesting
conditions) at the date of grant. The fair value determined at the
grant date of the equity-settled share-based payments is expensed
on the date of grant.
Share premium includes any contributions from equity holders
over and above the nominal value of shares issued. Any transaction
costs associated with the issuance of shares are deducted from
share premium.
Retained earnings represent all current period results of
operations as reported in the statement of profit or loss, reduced
by the amounts of dividends declared.
2.3 Costs and expenses
Cost and expenses are recognised in profit or loss upon
utilisation of goods or services or at the date they are incurred.
All finance costs are reported in profit or loss on an accrual
basis.
2.4 Taxation
The Company is liable to tax at the standard Guernsey rate of
0%.
2.5 Going Concern
The financial statements have been prepared using the going
concern basis of accounting as the directors are comfortable that
the Company will continue as a going concern for a period of at
least 12 months from 31 December 2022.
COVID-19
The directors continue to monitor the repercussions of the
COVID-19 pandemic on any potential impact on the future financial
performance of the Company. At the date of signing these financial
statements, whilst acknowledging that the pandemic is still active,
the directors do not believe that this will have a significant
financial impact on the Company in the medium to long term which
will prevent the Company from continuing to use the going concern
basis of accounting.
Russia/Ukraine
The Company has not been directly impacted by the current war in
Ukraine nor by the sanctions imposed on the Russian Federation but
may face inflationary pressure as a result of the worldwide impact
on global economies.
3. Critical Accounting Estimates And Judgements In Applying
Accounting Policies
The preparation of financial statements requires the use of
accounting estimates which, by definition, will seldom equal the
actual results. Management also needs to exercise judgement in
applying the Company's accounting policies.
4. Other Current Assets
Six months Six months
to to
31 December
2022 30 June 2022
GBP GBP
Prepayments 15,400 8,376
15,400 8,376
============ =============
5. Trade And Other Payables
Six months Six months
to to
31 December 30 June
2022 2022
GBP GBP
Administration fees 40,747 11,353
Directors' remuneration - 16,451
Legal and professional
fees 393 115,199
Sundry expenses 375 20
41,515 143,023
============ ===========
6. Taxation
The Company is subject to Guernsey income tax at 0%.
7. Share Capital and Share Premium
Number
of ordinary Ordinary
shares shares Share Premium Total
GBP GBP GBP
------------- --------- -------------- ----------
On incorporation (of
GBP1.00 each) 1 1 - 1
Issue share capital (no
par value each) 15,500,000 - 560,000 560,000
Redemption (of GBP1.00
each) (1) (1) - (1)
------------- --------- -------------- ----------
31 December 2021 15,500,000 - 560,000 560,000
Issue share capital (no
par value each) 1,000,000 - 1,000 1,000
------------- --------- -------------- ----------
30 June 2022 16,500,000 - 561,000 561,000
Issue share capital (no
par value each) 4,180,000 - 2,090,000 2,090,000
Costs attributable to
issue of shares - - (317,133) (317,133)
31 December 2022 20,680,000 - 2,333,867 2,333,867
------------- --------- -------------- ----------
On incorporation, the Company issued 1 ordinary Subscriber Share
of GBP1 at par of GBP1. On 29 July 2021, it was resolved to
re-designate the sole ordinary share of GBP1 par value issued to
Tanglin Capital Limited upon the formation of the Company as a
redeemable share, and to redeem the Subscriber Share for GBP1.
On 29 July 2021, Tanglin Capital Limited invested GBP10,000 into
the Company as cash consideration for 10,000,000 ordinary shares of
no par value at a price of GBP0.001 per share.
On 20 August 2021 and 8 September 2021, the Company issued
3,000,000 and 2,000,000 Ordinary Shares of no par value at a price
of GBP0.10 per share in connection with the pre-IPO fundraising,
raising a total of GBP500,000.
On 20 August 2021 the Company issued Strand Hanson Limited
GBP50,000 in equity as an initiation fee which equates to 500,000
ordinary Shares of no par value at a price of GBP0.10 per share.
The Company also agreed, on admission, to issue a Warrant to Strand
Hanson Limited to subscribe at any time during the three years
following the date of issue of the Warrant for an aggregate number
of shares equal to one per cent of the enlarged issued share
capital of the Company. The Warrant can be freely assigned by
Strand Hanson Limited to any subsidiary or associated company,
shareholders or employees.
On 05 April 2022 Nicholas Harris Bryan-Brown invested GBP1,000
into the Company as cash consideration for 1,000,000 ordinary
shares of no par value at a price of GBP0.001 per share.
On 15 September 2022 and on admission to the main market for
listed securities of the London Stock Exchange, the Company issued
4,180,000 Ordinary Shares of no par value respectively at a price
of GBP0.50 each, raising a total of GBP2,090,000.
During the period, the Directors allocated GBP317,133 of costs
directly attributable to the issue of shares against Share
Premium.
8. Earnings Per Ordinary Share
Period
ended
31 December
2022
GBP
Weighted
average Per-share
of number amount
Earnings of shares GBP
Earning attributable
to Shareholders (339,449) 18,930,761 (0.02)
========== ============ ==========
Basic earnings per Ordinary Share is calculated by dividing the
earnings attributable to Shareholders by the weighted average
number of Ordinary Shares outstanding 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. As at 31
December 2022 (and in accordance with the Warrant issued to Strand
Hanson on 20 August 2021 as disclosed in note 7), there were
206,800 warrants outstanding which represented 1% of the number of
Ordinary Shares in issue. The fully diluted loss per share
attributable to Shareholders (assuming conversion of all dilutive
potential Ordinary Shares) as at 31 December 2022 was GBP0.02.
9. Related Party Transactions
The directors' remuneration for Mr Ashley Charles Paxton, Mrs
Meriel Catherine Lenfestey and Mr Nicholas Bryan-Brown of the
period was GBP12,500 and GBP12,500 and GBP44,228 respectively.
Mr Nicholas Bryan-Brown and Mr Andrew Roberto Mankiewicz OBE
have also received GBP5,658 and GBP20,831 respectively as
reimbursement of travel and meeting expenses and legal and
professional fees paid on behalf of the company during the period
to 31 December 2022.
10. Ultimate Controlling Party
The Company is ultimately controlled by Tanglin Capital Limited
which is the Parent company, with Tanglin Capital Limited
ultimately controlled by Mr Andrew Roberto Mankiewicz OBE.
11. Financial Risk Management
The Company is exposed to a number of risks arising from the
financial instruments it holds. The main risks to which the Company
is exposed are market risk, credit risk and liquidity risk. The
risk management policies employed by the Company to manage these
risks are discussed below as follows:
11.1.1 Market risk
Market risk is the risk that changes in market prices such as
equity prices, interest rates and foreign exchange rates will
affect the Company's income or the value of its holdings of
financial instruments. The objective of market risk management is
to manage and control market risk exposures within acceptable
parameters while optimising the return.
Price risk
The Company is not directly or indirectly exposed to any
significant price risk.
Interest rate risk
Interest rate risk is the risk that the fair value of future
cash flows of a financial instrument will fluctuate because of
changes in market interest rates. Interest rate risk arises on
interest-bearing financial instruments recognised in the Statement
of Financial Position.
Cash and cash equivalents are interest bearing but not at
significant levels.
Currency risk
The Company is exposed to currency risk arising from trade and
other payables denominated in United States Dollars. Consequently,
the Company is exposed to the risk that the exchange rate of its
reporting currency relative to other foreign currencies may change
in a manner that has an adverse effect on the fair value or future
cash flows of the Company's financial assets or liabilities
denominated in currencies other than GBP.
11.1.2 Credit risk
Credit risk is the risk of financial loss to the Company if a
counterparty fails to meet its contractual obligations. Credit risk
arises from cash and cash equivalents as well as outstanding
receivables.
The Company assesses all counterparties for credit risk before
contracting with them. The credit risk on cash and cash equivalents
is mitigated by entering into transactions with counterparties that
are regulated entities subject to prudential supervision, with high
credit ratings assigned by international credit rating agencies.
Cash and cash equivalents are held with Barclays Bank plc, which at
the year end was assigned a credit rating of A by Standard and
Poor's rating agency.
The maximum exposure to credit risk is the carrying amount of
the financial assets set out below.
Six months Six months
to to
31 December 30 June
2022 2022
GBP GBP
Other current assets 15,400 8,376
Cash and cash equivalents 1,441,043 116,157
Total credit risk exposure 1,456,443 124,533
============ ===========
11.1.3 Liquidity risk
Liquidity risk is the risk that the Company will encounter
difficulty in meeting obligations associated with financial
liabilities. This risk can arise from mismatches in the timing of
cash flows relating to assets and liabilities. The Company receives
funding from the shareholders and does not have significant ad hoc
expenses to settle. The only significant expense that the Company
is exposed to are general operating expenses.
The table below analyses the Company's financial assets and
liabilities into the relevant maturity groupings based on the
remaining period at the reporting date. The amounts in the table
are the contractual undiscounted cash flows. Balances due within 12
months equal their carrying balances, as the impact of discounting
is not significant.
As at 31 December 2022 Less 1-12 months More than Total
than 12 months
1 month/on
demand
------------ ------------ ----------- ----------
Assets
Other current assets 15,400 - - 15,400
Cash and cash equivalents 1,441,043 - - 1,441,043
1,456,443 - - 1,456,443
------------ ------------ ----------- ----------
Liabilities
Trade and other payables 41,515 - - 41,515
41,515 - - 41,515
------------ ------------ ----------- ----------
11.2 Capital Risk Management
The capital of the Company is represented by the net assets
attributable to the equity shareholder. The Company's objective
when managing capital is to safeguard the ability to continue as a
going concern in order to provide returns for the shareholder and
benefits for other stakeholders.
The Board of Directors and the shareholders monitor capital on
the basis of the value of net assets attributable to the equity
shareholders.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR FLFVIVDIAFIV
(END) Dow Jones Newswires
March 29, 2023 06:43 ET (10:43 GMT)
Ikigai Ventures (LSE:IKIV)
Historical Stock Chart
From Jun 2024 to Jul 2024
Ikigai Ventures (LSE:IKIV)
Historical Stock Chart
From Jul 2023 to Jul 2024