TIDMTJI
RNS Number : 9451S
Tejoori Limited
29 December 2016
This announcement contains inside information as stipulated
under the Market Abuse Regulation (EU) No 596/2014 (MAR).
29 December 2016
Tejoori Limited
("Tejoori" or the "Company")
Final Results for the year ended 30 June 2016
The Board of Tejoori (AIM:TJI), the Dubai-based
Shari'a-compliant investment company, is pleased to announce its
audited results for the year ended 30 June 2016.
For further information:
Tejoori Limited Tel: +971 4 2839316
Abdullah Lootah, CEO ceo@tejooriltd.ae
Allenby Capital Limited Tel: +44 (0)203 328 5656
(Nominated Adviser
and Broker)
Nick Athanas/Charles
Donaldson
Chairman's Statement
On behalf of Tejoori's board of directors, I am pleased to
welcome you to the audited financial results of Tejoori Limited
(the "Company") and its subsidiaries (together, the "Group") for
the year ended 30 June 2016.
Financial performance during the year
As at 30 June 2016, the Company had cash available for
investment of USD 7,567,521 (30 June 2015: USD 2,236,817). In
addition, as at 30 June 2016, the Company had USD 2,216,828 placed
in wakala deposits (30 June 2015: USD 1,359,597). These deposits
carry a profit rate of 5 per cent. per annum. The significant
increase in cash at the period end compared to the corresponding
period reflects the sale of one of the Arjan plots previously owned
by Tejoori in May 2016. This plot was sold for net cash proceeds of
USD 6.4 million in May 2016.
During the year under review, Tejoori generated income of USD
107,185 (30 June 2015: USD 152,172) from Wakala deposits and a net
loss and other comprehensive loss of USD 6,502,654 (year ended 30
June 2015: USD 3,711,686), as a result of a revaluation of the
Company's assets. In particular Tejoori incurred a revaluation loss
of USD 3.35 million on the post year end sale of its holding in
BEKON Holding AG.
Major events during the year:
(a) Sale of interest in BEKON :
- The major loss incurred during the year is primarily due to
the revaluation loss of USD 3.35 million incurred on the Company's
10.1% interest in BEKON Holding AG ("BEKON"). As announced by
Tejoori on 24 August 2016, the Company's interest in BEKON was sold
post year end, in August 2016, for nil consideration.
- BEKON Holding AG was acquired by the Eggermann Group GmbH
& Co. KG ("Eggermann Group"), a decision that was taken by
BEKON's board and majority shareholders.
- Tejoori was not in favour of this acquisition of BEKON,
however Tejoori, as a minority shareholder, was obliged to dispose
of its interest by virtue of drag-along rights contained in the
selling BEKON shareholders' agreement.
- There is a potential earn out for the selling BEKON
shareholders as per the agreement with Eggermann Group but the
Board of Tejoori does not consider that there is a strong prospect
that any future earnings will be realised from this
arrangement.
- Therefore, the investment is carried at USD Nil (2015: USD
3.35 million) for the year ended 30 June 2016.
(b) Disposal of Arjan Plot :
As announced in May 2016 Tejoori successfully sold one of the
three Arjan Plots owned by Tejoori in the period under review with
net cash proceeds of c. USD 6.4 million being received by the
Company. The plot was sold for an amount in excess of the last
carrying book value prior to the sale, this being USD 4.38 million
as at 31 December 2015. Post year end the Group has successfully
sold a second plot of land in December 2016 for net cash proceeds
of c. USD 3.57 million.
Plots in Arjan
As announced on 17 December 2012, Tejoori successfully entered
into settlement agreements to cancel the sale and purchase
agreements with regards to its investment in the Lagoons Plots
Development in Dubai. At the same time Tejoori also entered into an
agreement to acquire 3 replacement plots of land in Dubai Land,
namely the Arjan Plots.
In May 2016, Tejoori disposed of one of the three plots to
Khanhaseb Investments LLC, a Dubai-based investment and real estate
company, and the consideration for the disposal was satisfied by a
cash consideration of 23,804,000 dirhams (equivalent to
approximately USD 6,481,600).
In October 2016, the Company entered into an agreement with SRG
Holding Limited, one of the leading family-owned companies in Dubai
with extensive operations in property development, to dispose of
the second plot with a realisation sum of 13,500,000 dirhams
(equivalent to approximately USD 3,673,470). The sale was completed
in December 2016 and is therefore not reflected in the financial
performance in the year ended 30 June 2016.
These disposals are the result of a number of months of hard
work by Tejoori's management and the Company's stated strategy is
to liquidate its interest in the final Arjan plot. Management of
Tejoori is actively working on the sale of the remaining plot. We
will keep our shareholders updated on the progress on third plot.
Whilst we are confident on a successful outcome there can be no
guarantee as to the success or timing of such sale or the terms
upon which the plot may or may not be sold.
Outlook
Following the sale of the two Arjan Plots and the Bekon
investment during 2016 the Company's major remaining investment is
its final Arjan Plot which, as outlined above, the Company is in
active discussions regarding a possible sale. The Company intends
to, as previously stated, return to shareholders a certain
proportion of the cash generated from the sale of the plots
undertaken to date and it intends to finalise these details
following the sale of the third Arjan Plot.
The Company is, in conjunction with its advisers, considering
the most effective and efficient manner in which to return cash to
shareholders and following the disposal of the third plot the
Company will update shareholders further. The Company is also, as
part of this review process, evaluating the merits of the Company
maintaining remaining as an AIM quoted company given the costs
associated with the listing.
An update on the above matters will be announced and provided to
shareholders in due course.
Khalid Al Nasser
Chairman of Board
28 December 2016
Directors' report
The Directors of Tejoori Limited ("Tejoori" or the "Company")
and its subsidiaries (together the "Group") present their annual
report on the operations of the Group, together with the audited
consolidated financial statements and auditor's report, for the
year ended 30 June 2016.
Principal activities
The Group's principal activity is that of an investment company
which invests in ethical and Shari'a compliant ventures worldwide.
The Company is incorporated and domiciled in the British Virgin
Islands ("BVI").
Listing
The Company's shares were admitted to trading on the AIM market
("AIM") of the London Stock Exchange ("LSE") on 24 March 2006.
Listing Requirements
The Group believes it has complied with the relevant provisions
of the rules of the LSE governing the admission to and operation of
AIM.
Results and Dividends
The results for the year are set out in the consolidated
statement of comprehensive income in the accompanying consolidated
financial statements. No dividends have been proposed or declared
for the year ended 30 June 2016.
Directors
The Directors, who served during the year and to the date of
this report, were as follows:
Director's name Date appointed Date resigned
Khalid Al Nasser 05 April 2008 -
Saad Al Fouzan 05 April 2008 -
Mohamed Abdulla 05 April 2008 -
Al Zaabi
Abdullah Ibrahim 15 March 2011 -
Saeed Lootah
Directors' interests
The directors who held office as at 30 June 2016 had the
following interest in the shares of the Company.
No. of
shares % holding
Khalid Al Nasser 1,333,333 4.81%
Saad Al Fouzan 1,666,800 6.02%
Mohamed Abdulla Hasan A.
Bedboosh Al Zaabi 1,350,000 4.87%
Abdullah Ibrahim Saeed Lootah 200,500 0.72%
Refer to Note 17 for other disclosures on directors'
interests.
Acquisition of the Company's own shares
By virtue of being traded on a stock market, there is always the
possibility of the ordinary shares trading at a discount to their
Net Asset Value per Share. However, in structuring the Company, the
Directors have given detailed consideration to the discount risk
and how this may be managed. Conditionally, the Directors have
authority to buy back the ordinary shares in issue.
There is no present intention to exercise such authority. Any
repurchase of ordinary shares will be made subject to BVI law as
appropriate and within guidelines established from time to time by
the Board (which will take into account the income and cash flow
requirements of the Group) and the making and timing of any
repurchase will be at the absolute discretion of the Board.
Purchases of ordinary shares will only be made through the market
for cash at prices below the prevailing Net Asset Value per Share
where the Board believes that purchases enhance Shareholder
value.
During the period under review no ordinary shares were
purchased.
Further share issues
Subject to market conditions then prevailing and to all
necessary consents and approvals being obtained, the Board may
decide to make one or more further issue of ordinary shares for
cash from time to time. There are no provisions of BVI law or the
current Articles of Association providing for pre-emption rights
for existing Shareholders on the allotment of further ordinary
share for cash. Unless authorised by Shareholders (save for the
issue of any ordinary shares pursuant to the exercise of any
Warrants), the Company will not issue further ordinary shares at a
price below the prevailing Net Asset Value per Share unless they
are first offered pro-rata to existing Shareholders or Shareholders
have otherwise approved any such issue.
The Directors have the authority to issue 4,131,279 warrants.
These warrants give the holder the right to acquire 1 share in the
Company at a price of USD1.00 per warrant. No warrants were issued
during the period under audit.
.......................................................
Mohamed Abdulla Al Zaabi
.....................................................
Saad Al Fouzan
......................................................
Abdullah Ibrahim Saeed Lootah
28 December 2016
Corporate governance statement
Whilst the BVI do not have a corporate governance regime the
Directors recognise the importance of sound corporate governance,
taking into account the size of the Group and the fact that it is a
self-managed investment company. The Board will, where practicable,
comply with the principles of the Corporate Governance Guidelines
for AIM Companies issued by the Quoted Companies Alliance.
The Board has established an audit committee comprising of Saad
Al Fouzan & Mohammed Al Zaabi with duties and responsibilities
formally delegated to it by the Board. The audit committee is
primarily responsible for ensuring that the financial performance
of the Group is properly monitored and reported on and for
reviewing the effectiveness of the Group's systems of internal
control.
The Group has also established a remuneration and nominations
committee to review the performance of its executive Directors and
review and recommend the scale and structure of their remuneration
and the basis of their remuneration and the terms of their service
agreements with due regard to the interests of Shareholders. In
considering the remuneration of executive Directors the committee
seeks to enable the Group to attract and retain staff of the
highest calibre. The remuneration and nomination committee will
also be required to approve the allocation of warrants to
employees. No Director is permitted to participate in discussions
or decisions concerning his own remuneration including the grant of
warrants. The committee also ensures that the Board has a formal
and transparent appointment procedure and has primary
responsibility for reviewing the balance and effectiveness of the
Board and identifying the skills needed by the Board and by those
individuals who might best provide them. The remuneration and
nominations committee consists of Khalid Al Nasser and Abdullah I.
S. Lootah.
The Group will comply with Rule 21 of the AIM Rules regarding
dealings in the Company's shares and will ensure compliance by the
Directors and applicable employees. The Group has adopted a share
dealing code appropriate for a company admitted to trading on
AIM.
Directors' remuneration
The services of each of Directors: Saad Al Fouzan, Khalid Al
Nasser, Mohammed Al Zaabi& Abdullah Ibrahim Saeed Lootah are
provided under the terms of letters of appointment between the
Group and each of them.
The total amounts for Directors' remuneration payable during the
period were as follows:
Name of Director Fee(USD)
Abdullah I. S.
Lootah Executive Director 5,000.00
Non-Executive
Khalid Al Nasser Director 5,000.00
Non-Executive
Mohammed Al Zaabi Director 5,000.00
Non-Executive
Saad Al Fouzan Director 5,000.00
20,000.00
----------
Approval
This report was approved by the Board of Directors on 28December
2016and signed on its behalf by:
..................................................
Saad Al Fouzan
28 December 2016
Statement of directors' responsibilities
The Directors are to prepare financial statements for each
financial year, which give a true and fair view of the state of
affairs of the Group at the end of the financial period and of the
profit or loss of the Group for that period. In preparing those
consolidated financial statements, the Directors are required
to:
-- Select suitable accounting policies and then apply them consistently;
-- Make judgements and estimates that are reasonable and prudent;
-- State whether applicable accounting standards have been
followed, subject to any material departures disclosed and
explained in the consolidated financial statements;
-- Prepare the consolidated financial statements on the going
concern basis unless it is inappropriate to assume that the Group
will continue in business.
The Directors confirm that they have complied with the above
requirements in preparing the consolidated financial
statements.
The Directors are responsible for keeping proper accounting
records which disclose with reasonable accuracy at any time the
financial position of the Group and to enable them to ensure that
the consolidated financial statements comply with International
Financial Reporting Standards. They are also responsible for
safeguarding the assets of the Group and hence for taking
reasonable steps for the prevention and detection of fraud and
other irregularities.
Director ....................
Director ....................
28 December 2016
Independent auditors' report
The Shareholders
Tejoori Limited
Report on the Consolidated Financial Statements
We have audited the accompanying consolidated financial
statements of Tejoori Limited and its subsidiaries ("the Group"),
which comprise the consolidated statement of financial position as
at 30 June 2016, the consolidated statements of profit or loss and
other comprehensive income, changes in equity and cash flows for
the year then ended, and notes, comprising a summary of significant
accounting policies and other explanatory information.
Management's responsibility for the consolidated financial
statements
Management is responsible for the preparation and fair
presentation of these consolidated financial statements in
accordance with International Financial Reporting Standards and for
such internal control as management determines is necessary to
enable the preparation of consolidated financial statements that
are free from material misstatement, whether due to fraud or
error.
Auditors' responsibility
Our responsibility is to express an opinion on these
consolidated financial statements based on our audit. We conducted
our audit in accordance with International Standards on Auditing.
Those standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance about
whether the consolidated financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the consolidated financial
statements. The procedures selected depend on our judgment,
including the assessment of the risks of material misstatement of
the consolidated financial statements, whether due to fraud or
error. In making those risk assessments, we consider internal
control relevant to the entity's preparation and fair presentation
of the consolidated financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the
entity's internal control.
An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of accounting
estimates made by management, as well as evaluating the overall
presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion, the consolidated financial statements present
fairly, in all material respects, the consolidated financial
position of the Group as at 30 June 2016, and its consolidated
financial performance and its consolidated cash flows for the year
then ended in accordance with International Financial Reporting
Standards.
KPMG Lower Gulf Limited
Date:
Consolidated statement of financial position
as at 30 June
Note 2016 2015
USD USD
ASSETS
Cash and bank balances 5 7,567,521 2,236,817
Wakala deposits 6 2,216,828 1,359,597
Other receivables 7 1,681,551 3,741,500
Other assets 8 23,515 13,131
Available-for-sale investment 9 - 3,350,000
Investment properties 10 6,630,049 13,913,682
--------------- ---------------
Total assets 18,119,464 24,614,727
========= ========
LIABILITIES AND EQUITY
Liabilities
Due to a shareholder 11 877,200 877,200
Trade and other payables 12 39,033 18,666
Due to related parties 17 524,923 537,899
------------- -------------
Total liabilities 1,441,156 1,433,765
------------- -----------
Equity
Share capital 13 277,089 277,089
Share premium 14 41,286,207 41,286,207
Accumulated losses (24,884,988) (18,382,334)
--------------- ---------------
Total equity 16,678,308 23,180,962
--------------- ---------------
Total liabilities and equity 18,119,464 24,614,727
========= =========
These consolidated financial statements were approved for issue
by the Board of Directors of the Company on and signed on its
behalf by:
________________ ________________
Director Director
The notes set out on pages 14 to 34 are an integral part of
these consolidated financial statements.
The independent auditors' report is set out on page 8 - 9.
Consolidated statement of profit or loss and other comprehensive
income
for the year ended 30 June
Note 2016 2015
USD USD
Income
Return on Wakala deposits 107,185 152,172
Revaluation loss on investment
properties 10 (2,901,592) (2,546,358)
Revaluation loss on available-for-sale
investment (3,350,000) (690,000)
Loss on sale of property (180,747) -
--------------- ---------------
Total income (6,325,154) (3,084,186)
-------------- --------------
Expenses
Administrative and other
operating expenses 15 (177,500) (167,500)
------------- -------------
(177,500) (167,500)
------------- -------------
Loss for the year (6,502,654) (3,251,686)
Other comprehensive income
Items that will be reclassified
to profit or loss:
Net change in fair value
of available-for-sale investment (3,350,000) (1,150,000)
Net amount transferred to
profit or loss 3,350,000 690,000
-------------- --------------
Total other comprehensive
loss - (460,000)
------------- -------------
Total loss and other comprehensive
loss for the year (6,502,654) (3,711,686)
======== ========
Loss per share - basic and
diluted 16 (0.235) (0.117)
The notes set out on pages 14 to 34 are an integral part of
these consolidated financial statements.
The independent auditors' report is set out on page 8 - 9.
Consolidated statement of changes in equity
for the year ended 30 June
Share Share Fair value Accumulated Total
capital premium reserve losses
USD USD USD USD USD
Balance at 1
July 2014 277,089 41,286,207 460,000 (15,130,648) 26,892,648
Total comprehensive
income for the
year
Loss for the
year - - - (3,251,686) (3,251,686)
Total other comprehensive
income for the
year
Change in the
fair value of
available for
sale financial
investment - - (1,150,000) - (1,150,000)
Net amount transferred
to profit or
loss - - 690,000 - 690,000
---------- ---------- -------------- -------------- -------------
Total other comprehensive
income for the
year - - (460,000) - (460,000)
---------- ----------- -------------- -------------- -------------
Total comprehensive
income for the
year - - (460,000) (3,251,686) (3,711,686)
---------- -------------- -------------- --------------- -------------
Balance at 30
June 2015 277,089 41,286,207 - (18,382,334) 23,180,962
====== ======== ========= ========= ========
Balance at 1
July 2015 277,089 41,286,207 - (18,382,334) 23,180,962
Total comprehensive
income for the
year
Loss for the
year - - - (6,502,654) (6,502,654)
Total other comprehensive
income for the
year
Change in the
fair value of
available for
sale financial
investment - - (3,350,000) - (3,350,000)
Net amount transferred
to profit or
loss - - 3,350,000 - 3,350,000
---------- ----------- -------------- -------------- -------------
Total other comprehensive - - - - -
income for the
year
---------- ----------- -------------- -------------- -------------
Total comprehensive
income for the
year - - - (6,502,654) (6,502,654)
---------- -------------- -------------- --------------- -------------
Balance at 30
June 2016 277,089 41,286,207 - (24,884,988) 16,678,308
====== ======== ========= ========= ========
The notes set out on pages 14 to 34 are an integral part of
these consolidated financial statements.
Consolidated statement of cash flows
for the year ended 30 June
Note 2016 2015
USD USD
Cash flows from operating
activities
Loss for the year (6,502,654) (3,251,686)
Adjustments for:
Revaluation loss on investment
properties 10 2,901,592 2,546,358
Impairment of available for
sale financial investment 3,350,000 690,000
Loss on sale of investment 35,714 -
property
-------------- --------------
Cash from operating activities
before changes in working
capital (215,348) (15,328)
Change in wakala deposits (857,231) 2,242,595
Change in other receivables 2,059,949 -
Change in other assets (10,384) 25,593
Change in due to related parties (12,976) 30,047
Change in trade and other
payables 20,367 (56,195)
-------------- --------------
Net cash from operating activities 984,377 2,226,712
-------------- --------------
Cash flows from investing
activities
Net cash received from sale
of investment property 10 4,346,327 -
------------- -------------
Net cash from investing activities 4,346,327 -
-------------- --------------
Net increase in cash and cash
equivalents 5,330,704 2,226,712
------------- -------------
Cash and cash equivalents
at the beginning of the year 2,236,817 10,105
------------- -------------
Cash and cash equivalents
at the end of the year 5 7,567,521 2,236,817
======== ========
The notes set out on pages 14 to 34 are an integral part of
these consolidated financial statements.
The independent auditors' report is set out on page 8 - 9.
Notes to the consolidated financial statements
1. Legal status and principal activities
Tejoori Limited ("the Company") and its subsidiaries (together,
"the Group") are self-managed investment companies. The Company's
shares were listed on the Alternative Investment Market ("AIM") of
the London Stock Exchange ("LSE") on 24 March 2006.
The Company is incorporated and domiciled in the British Virgin
Islands and its registered address is PO Box 173, Kingston
Chambers, Road Town, Tortola, British Virgin Islands. The Company's
operations are managed from the United Arab Emirates (UAE).
The principal activity of the Group is investment in Shari'a
compliant ventures worldwide.
The Company has the following subsidiaries and special purpose
vehicles.
Entity Ownership Country of
% incorporation
2016 2015
United Arab
Tejoori Emirates LLC 100 100 Emirates
Tejoori Environmental British Virgin
M.E Limited 100 100 Island
British Virgin
Lagoons Plot 1 Limited 100 100 Island
British Virgin
Lagoons Plot 2 Limited 100 100 Island
British Virgin
Lagoons Plot 3 Limited 100 100 Island
Tejoori Emirates LLC is a Limited Liability Company incorporated
in the Emirate of Dubai, United Arab Emirates ("UAE") on 15 August
2006 under Federal Law No 8 of 1984 (as amended) applicable to
commercial companies. Its registered address is P.O Box 75008,
Dubai, United Arab Emirates. Tejoori Emirates LLC has been
nominated to hold title over investment properties.
Lagoons Plot 1 Limited, Lagoons Plot 2 Limited and Lagoons Plot
3 Limited are companies registered in British Virgin Islands,
incorporated on 6 June 2006. These special purpose vehicles were
established for the purpose of acquiring plots of land in the
Lagoon project in Dubai, UAE. During the year ended 30 June 2013,
the purchase agreement for the Lagoon plots was cancelled and
pursuant to an agreement with the seller on 9 December 2012, the
advanced payments against these plots were adjusted against the
purchase price of three plots of land in the Arjan project in
Dubai, United Arab Emirates (refer note 10).
Tejoori Environmental M.E. Limited, Lagoons Plot 1 Limited,
Lagoons Plot 2 Limited and Lagoons Plot 3 Limited are currently
dormant entities due for dissolution.
2. Basis of preparation
a) Statement of compliance
These consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards
("IFRSs") as issued by International Accounting Standard Board
("IASB").
b) Basis of measurement
The consolidated financial statements have been prepared on the
historical cost basis except for investment properties and an
available-for-sale investment which are measured at fair value.
c) Functional and presentational currency
The consolidated financial statements are presented in United
States Dollars ("USD"), which is the Company's functional
currency.
d) Use of estimates and judgments
The preparation of these consolidated financial statements in
conformity with IFRS requires management to make judgements,
estimates and assumptions that affect the application of the
Group's accounting policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may differ from
these estimates.
Estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to estimates are recognised in the period in which
the estimate is revised if the revision affects only that period or
in the period of the revision and future periods if the revision
affects both current and future periods.
The estimates and associated assumptions are based onhistorical
experience and other factors, including expectations of future
events that are believed to be reasonable under the circumstances,
and have significant risk of causing material adjustment to the
carrying amounts of assets and liabilities within the next
financial year as discussed below:
(i) Classification of investments
Judgements are made in the classification of financial
instruments based on management's intention at the time of
acquisition.
The Group treats available-for-sale equity investments as
impaired when there has been a significant or prolonged decline in
the fair value below its cost or where other objective evidence of
impairment exists. The determination of what is "significant" or
"prolonged" requires considerable judgement.
(ii) Valuation of unquoted investments
Valuation of unquoted investments, not reported on by custodian
banks, requires considerable judgement by the Group and is normally
based on one of the following:
i. Recent arm's length transactions;
ii. Current fair value of another instrument that is
substantially the same;
Notes to the consolidated financial statements (continued)
d) Use of estimates and judgments (continued)
(ii) Valuation of unquoted investments (continued)
iii. The expected cash flows discounted at current rates
applicable for items with similar terms and risk categories;
iv. When the investment is held through a third party fund, the
present valuation reported by the fund manager from time to time;
and
v. Other valuation models.
Where the valuation of unquoted investments is made by the
custodian bank, the judgement is by the custodian bank and not the
Group.
e) Change in accounting policy
The Group has adopted the following new standards and amendments
to standards, including any consequential amendments to other
standards, with a date of initial application of 1 July 2015:
(i) Annual Improvements to IFRS 2010-2012 Cycle - various standards; and
(ii) Annual Improvements to IFRS 2011-2013 Cycle - various standards.
3. Significant accounting policies
Except for the change explained in note 2(e), the Group has
consistently applied the following accounting policies to all
periods presented in these consolidated financial statements,
unless otherwise stated.
a) Basis of consolidation
Subsidiaries
Subsidiaries are entities controlled by the Group. The Group
controls an entity when it 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.
The financial statements of subsidiaries are included in the
consolidated financial statements from the date on which control
commences until the date on which control ceases.
Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised gains
arising from intra-group transactions, are eliminated in preparing
the Group's consolidated financial statements.
b) Return on Wakala deposits
Return on Wakala deposits is recognised on a time proportionate
basis in the consolidated statement of comprehensive income using
effective yield method. Effective yield is the rate that exactly
discounts the estimated future cash payments and receipts through
the expected life of the Wakala deposit (or, where appropriate, a
shorter period) to the carrying amount of the Wakala deposit.
c) Dividend income
Dividend income is recognised in profit or loss on the date that
the right to receive payment is established which is usually the
date when the shareholders have approved the payment of a dividend.
Dividend income from equity securities designated as
available-for-sale is recognised in profit or loss as a separate
line item.
d) Foreign currency transactions
Transactions denominated in foreign currencies are translated
into US Dollars ("USD") at the foreign exchange rate at the date of
the transaction. Monetary assets and liabilities denominated in
foreign currencies at the reporting date are retranslated into USD
at the foreign exchange rate at that date. Non-monetary assets and
liabilities denominated in foreign currencies that are measured at
fair value are retranslated into USD at the foreign exchange rate
at the date that the fair value was determined. Non-monetary assets
and liabilities that are measured in terms of historical cost in a
foreign currency are translated using the exchange rate at the date
of the transaction.
e) Property and equipment
Property and equipment is stated at cost less accumulated
depreciation. Depreciation is calculated on the straight-line
method to write down the cost of assets to their estimated residual
values over their expected useful economic lives as follows:
Years
Computers 3
Furniture and fixtures 5
Office equipment 4
Where the carrying amount of an asset is greater than its
estimated recoverable amount, it is written down immediately to its
recoverable amount being the higher of the net fair value and value
in use.
Gains and losses on disposal of property and equipment are
determined by comparing the sales proceeds to their carrying amount
and are taken into account in determining profit / loss for the
year. Repairs and renewals expenses are charged to the profit or
loss when the expenditure is incurred.
f) Investment property
Investment property is property held either to earn rental
income or for capital appreciation or for both. Investment property
is recognised when the full purchase price is paid and legal and
beneficial title is transferred to the Group. Investment property
is measured at cost on initial recognition and subsequently at fair
value with any change therein recognised in profit or loss.
Any gain or loss on disposal of an investment property
(calculated as the difference between the net proceeds from
disposal and the carrying amount of the item) is recognised in
profit or loss.
The Group determines fair value on the basis of valuation
provided by an independent valuer who holds a recognised and
relevant professional qualification.
g) Provisions
A provision is recognised if, as a result of a past event the
Group has a present legal or constructive obligation that can be
estimated reliably and it is probable that an outflow of economic
benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.
h) Financial instruments
The Group classifies the financial assets into the following
categories: financial assets at fair value through profit or loss,
held-to-maturity financial assets, loans and receivables and
available-for-sale financial assets.
The Group classifies non-derivative financial liabilities into
the other financial liabilities category.
Non-derivative financial assets and financial liabilities -
Recognition and derecognition
The Group initially recognises loans and receivables and debt
securities issued on the date when they are originated. All other
financial assets and financial liabilities are initially recognised
on the trade date.
The Group derecognises a financial asset when the contractual
rights to the cash flows from the asset expire, or it transfers the
rights to receive the contractual cash flows in a transaction in
which substantially all of the risks and rewards of ownership of
the financial asset are transferred, or it neither transfers nor
retains substantially all of the risks and rewards of ownership and
does not retain control over the transferred asset. Any interest in
such derecognised financial assets that is created or retained by
the Group is recognised as a separate asset or liability.
The Group derecognises a financial liability when its
contractual obligations are discharged or cancelled, or expire.
Financial assets and financial liabilities are offset and the
net amount presented in the statement of financial position when,
and only when, the Group has a legal right to offset the amounts
and intends either to settle them on a net basis or to realise the
asset and settle the liability simultaneously.
Non-derivative financial assets - Measurement
Available-for-sale
These assets are initially recognised at fair value plus any
directly attributable transaction costs. Subsequent to initial
recognition, they are measured at fair value and changes therein,
other than impairment losses, are recognised in OCI and accumulated
in the fair value reserve. When these assets are derecognised, the
gain or loss accumulated in equity is reclassified to profit or
loss.
Non-derivative financial liabilities - Measurement
Non-derivative financial liabilities are initially recognised at
fair value less any directly attributable transaction costs.
Subsequent to initial recognition, these liabilities are measured
at amortised cost using the effective yield method.
Fair value measurement principles
Fair value is the amount for which an asset could be exchanged,
or a liability settled, between knowledgeable, willing parties in
an arm's length transaction on the measurement date.
When available, then the Group measures the fair value of an
instrument using quoted prices in an active market for that
instrument. A market is regarded as 'active' if quoted prices are
readily and regularly available and represent actual and regularly
occurring market transaction on an arm's length basis.
Assets and long positions are measured at a bid price;
liabilities and securities sold short are measured at an asking
price.
Fair value hierarchy
Inputs to valuation techniques reasonably represent market
expectations and measures of the risk-return factors inherent in
the financial instrument.
Fair value of derivatives that are not exchange traded is
estimated at the present value of the amount that the Group would
need to pay to terminate the contract at the reporting date taking
into account current market conditions and the current credit
worthiness of the counterparty.
Fair values reflect the credit risk of the instrument and
include adjustments to take account of the credit risk of the Group
and the counterparty, where appropriate. Fair value estimates
obtained from models are adjusted for any other factors, such as
liquidity risk or model uncertainties; to the extent that the Group
believes a third-party market participant would take them into
account in pricing a transaction.
Fair value hierarchy (continued)
The Group uses the following fair value hierarchy that reflects
the significance of the inputs used in making the measurements:
Level 1: Quoted market price (unadjusted) in an active market
for an identical instrument.
Level 2: Valuation techniques based on observable input, either
directly (i.e., as prices) or indirectly (i.e., derived from
prices). This category includes instruments valued using: quoted
market prices in active markets for similar instruments; quoted
prices for identical or similar instruments; or other valuation
techniques where all significant inputs are directly or indirectly
observable from market data.
Level 3: Valuation techniques using significant unobservable
inputs- this category includes all instruments where the valuation
technique includes inputs based on observable data and the
unobservable inputs have a significant effect on the instrument'
valuation. This category includes instruments that are valued based
on quoted prices for similar instruments where significant
unobservable adjustments or assumptions are required to reflect
differences between the instruments.
Gains and losses on subsequent measurement
Gains and losses arising from changes in the fair value of the
'financial instruments at fair value through profit or loss'
category are included in profit or loss in the period in which they
arise.
Impairment of financial assets
At each reporting date, the Company assesses whether there is
objective evidence that financial assets not carried at fair value
through profit and loss ("FVTPL") are impaired. A financial asset
is impaired if objective evidence indicates that a loss event has
occurred after the initial recognition of the assets, and that the
loss event has an impact on the future cash flows of those assets
that can be estimated reliably.
Individually significant financial assets are tested for
impairment on an individual basis.
In the case of equity investments classified as
available-for-sale, a significant or prolonged decline in the fair
value of the security below its cost is considered as objective
evidence in determining whether the assets are impaired. If any
such evidence exists for such financial instruments, impairment
loss is recognised.
Financial assets are written off only in circumstances where all
collecting activities have been exhausted.
Impairment losses on financial assets classified as
available-for-sale are recognised by transferring the cumulative
loss that has been recognised in other comprehensive income to the
profit or loss. The cumulative loss that is reclassified from other
comprehensive income to the profit or loss is the difference
between the acquisition cost, net of any principal repayment and
amortisation, and the current fair value, less any impairment loss
previously recognised in the profit or loss.
An impairment loss in respect of a financial asset measured at
amortised cost is calculated as the difference between its carrying
amount, and the present value of the estimated future cash flows
discounted at the original effective interest rate.
If, in a subsequent period, the fair value of an impaired debt
security classified at fair value through other comprehensive
income, increases and the increase can be objectively related to an
event occurring after the impairment loss was recognised in the
profit or loss, the impairment loss is reversed, with the amount of
the reversal recognised in the profit or loss. However, any
subsequent recovery in the fair value of an impaired equity
investment classified as available-for-sale is not reversed through
the profit or loss and is recognised in other comprehensive
income.
Non-financial assets
The carrying amounts of the Company's non-financial assets are
reviewed at each reporting date to determine whether there is any
indication of impairment. If any such indication exists, the
asset's recoverable amount is estimated.
The recoverable amount of an asset or cash-generating unit is
the greater of its value in use and its fair value less costs to
sell. In assessing value in use, the estimated future cash flows
are discounted to their present value using a discount rate that
reflects current market assessments of the time value of money and
the risks specific to the asset. For the purpose of impairment
testing, assets are grouped together into the smallest group of
assets that generates cash inflows from continuing use that are
largely independent of the cash inflows of other assets or groups
of assets (the "cash-generating unit").In the case where asset's
carrying amount exceeds its recoverable amount as estimated, an
impairment loss is recognised in the profit or loss as the
difference between carrying amount of asset and its recoverable
amount.
Impairment losses recognised in prior periods are assessed at
each reporting date for any indications that the loss has decreased
or no longer exists and reversal is made if there has been a change
in the estimates used to determine the recoverable amount. The
reversal is made only to the extent that the asset's revised
carrying amount does not exceed the carrying amount that would have
been determined, net of depreciation or amortisation, if no
impairment loss had been recognised.
i) New standards and interpretations not yet adopted
A number of new standards, amendments to standards and
interpretation are effective for annual periods beginning on or
after 1 January 2015, and have not been applied in preparing these
financial statements. Those which may be relevant to the Group are
set out below. The Group does not plan to adopt these standards
early.
Standards Description Effective
for periods
beginning
IFRS 15 Revenue from Contracts 1 January
with Customers 2018
IFRS 9 Financial Instruments 1 January
2018
IFRS 16 Leases 1 January
2019
The Group is currently reviewing the impact of the above
mentioned standards.
4. Risk management
The board of directors of the Group is responsible for setting
and managing the risk management framework of the Group.
The Group investment portfolio comprises an equity investment,
investment property, Wakala deposits and cash and cash
equivalents.
The Group has exposure to the following financial risk arising
from the use of financial instruments:
-- Credit risk;
-- Liquidity risk and
-- Market risk.
Credit risk
Credit risk is the risk that counterparty to a financial
instrument will fail to discharge an obligation or commitment that
it has entered into with the Group, resulting in a financial loss
to the Group. It arises principally from Wakala deposits of the
Group and cash and cash equivalents.
The Group seeks to manage its credit risks by monitoring credit
exposures and assessing the creditworthiness of counterparties. The
risk with respect to cash and cash equivalents is limited because
the Group places funds with banks with good credit ratings.
The Group's maximum credit risk exposure at the reporting date
is represented by the respective carrying amounts of the financial
assets in the statement of financial position as follows:
2016 2015
USD USD
Cash at bank (note
5) 7,567,521 2,236,817
Wakala deposits (note
6) 2,216,828 1,359,597
Other receivables (note
7) 1,681,551 3,741,500
Other asset (note 8) 10,748 -
------------- ------------
11,476,648 7,337,914
======== =======
As at 30 June 2016, 100% (2015: 100%) of the credit exposure is
with entities based in the UAE.
Liquidity risk
Liquidity risk is the risk that the Group will encounter
difficulty in meeting obligations arising from its financial
liabilities that are settled by delivering cash or another
financial asset, or that such obligations will have to be settled
in a manner disadvantageous to the Group.
The Group's approach to managing liquidity is to have sufficient
liquidity to meet its liabilities, as and when due, without
incurring undue losses or risking damage to the Group's
reputation.
The Group maintains cash balances with banks to maintain
liquidity and to pay other payables. At the reporting date the
Group held USD 7,567,521 (2015: USD 2,236,817) in balances with a
bank.
Market risk
Market risk is the risk that changes in market prices, such as
property prices, profit rates, equity prices, foreign exchange
rates and credit spreads (not related to changes in the obligor's /
issuer's credit standing) will affect the Group's income or the
value of its holding of financial instruments.
The Group's strategy on the management of investment risk is
driven by the Group's investment objective.
The Group has limited exposure to currency risk as the majority
of the Group's transactions are in USD and United Arab Emirate
Dirham (AED). Foreign exchange risk is minimised as the AED is
currently pegged to the USD.
The Group's available-for-sale investment represents the Group's
primary exposure to currency risk. The investment pertains to an
equity investment in Euro currency in a German company which has a
carrying value as at 30 June 2016of USD nil(2015: USD 3,350,000)
refer note 9.
A 5% strengthening / weakening in the value of the Euro against
the US Dollar with all other variable held constant would result in
an increase / decrease in the profit of the Group of USD nil (2015:
USD 173,732).
Profit rate risk
The Group is not significantly exposed to the profit cash flow
rate risk. The cash balances are held in current accounts and are
non-profit bearing. Wakala deposits are placed for a short term at
a fixed profit rate of 5% p.a. (2015: 5% p.a.).
Equity price risk
Equity price risk is the possibility that equity prices will
fluctuate, affecting the fair value of equity investments and other
instruments that derive their value from a particular equity
investment or index of equity prices.
The Group is exposed to equity price risk on its
available-for-sale investment. A 5% strengthening or weakening in
prices, with all or variables held constant would result in an
increase / decrease in the profit of the Group of USD nil (2015:
USD 173,732).
Fair values
The fair values of the financial assets and liabilities are not
materially different from their carrying values at the reporting
date.
Capital management
The Group's objectives when managing capital are to safeguard
the Group's ability to continue as a going concern in order to
provide returns to shareholders and benefits for other stakeholders
and to maintain an optimal capital structure to reduce the cost of
capital.
5. Cash and bank balances
2016 2015
USD USD
Cash at bank 7,567,521 2,236,817
======= ======
Cash at bank is placed with local banks based in the United Arab
Emirates.
6. Wakala deposits
2016 2015
USD USD
Wakala deposits 2,216,828 1,359,597
======= =======
The Wakala deposits are placed with corporate entities in the
United Arab Emirates and carry a profit rate of 5% per annum (2015:
5% per annum).
In view of the management, cash flows from such rescheduled
deposits are fully recoverable, hence no impairment provision is
required.
7. Other receivables
2016 2015
USD USD
Other receivables(Note
7.1) 1,681,551 3,741,500
======= =======
7.1 On 26 October 2008, the Group entered into a contract to
sell its interest in Lagoons plot 3, for USD 12.6 million of which
USD 3.1 million was receivable from the acquirer at the time.
In September 2012, the acquirer of the plot signed an agreement
("settlement agreement") with the Group whereby the acquirer
delegated the Group to perform settlement with the main developer
of Lagoons plots for replacing the Lagoons plot with an alternative
plot of land.
During the year ended 30 June 2013, the Group successfully
replaced the Lagoons plots for alternative plots in the Arjan
project located in Dubai, UAE. USD 0.6 million of the additional
costs incurred on the exchange of plots was payable by the acquirer
which has been added to the earlier receivable of USD 3.1 million.
However, the acquirer has refused to settle the balance due to the
Group. While the negotiations are ongoing to settle the dispute, no
impairment has been recognised.
During the year, the Group sold a portion of the investment
property for a gross consideration of USD 6.53 million (refer note
10) and the amount payable to the acquirer on such disposal has
been adjusted against the receivable from the acquirer in
accordance with the settlement agreement dated 14 September
2012.
8. Other assets
2016 2015
USD USD
Prepayments and other
assets 23,515 13,131
====== ======
9. Available-for-sale investment
During the year ended 30 June 2007, the Group invested EUR 5.9
million to acquire 16.73% equity interest in BEKON Holding AG.
BEKON Holding AG specializes in the construction and operation of
biogas plants for the generation of electricity and gas injection,
as well the production of quality compost and organic
fertilizer.
During the year ended 30 June 2009, BEKON Holding AG increased
its share capital, which was not participated by the Group,
resulting in the dilution of the Group's investment to 15.16%.
During the year ended 30 June 2012 and 30 June 2013 BEKON
Holding AG increased its share capital which further diluted the
Group interest to 12.76% and then to 11.69% as at 30 June 2013.
On 2 July 2013, the Group interest was further diluted to 10.1%
due to an additional increase in share capital by BEKON Holding
AG.
As at 30 June 2016, the available-for-sale investment represents
10.1% (30 June 2015: 10.1%) investment in BEKON Holding AG.
Subsequent to the year end, on 10 August 2016, the Board of
directors of the Group declared the disposal of its 10.1% interest
in BEKON Holdings AG. BEKON Holdings AG was acquired by the
Eggersmann Group GmbH & Co. KG ("Eggersmann Group"), based on
the decision made by the majority shareholders of BEKON Holdings
AG. Due to the rights of preferential shareholders of BEKON
Holdings AG in the sale, the Group hasn't received any initial
consideration for the sale of its shares. The Group had to dispose
its 10.1% interest by virtue of drag along rights in the BEKON
Holdings AG shareholders' agreement. While, there is a potential
earn out for the shareholders in the sale and purchase agreement
with Eggermann Group by selling BEKON Holdings AG shares, the Board
of Directors does not consider any future earnings to be realised
by the Group. As such, the investment is carried at USD nil (2015:
USD 3.35 million) for the year ended 30 June 2016.
2016 2015
USD USD
Balance at 1 July 3,350,000 4,500,000
Fair value loss during
the year (3,350,000) (1,150,000)
------------ ------------
Balance at 30 June - 3,350,000
======= =======
10. Investment properties
The fair value of the investment properties, is determined by
the management based on an exit price of a comparable transaction
which occurred subsequent to the year ended 30 June 2016.
Management believe the fair value of these properties at the
reporting date is not materially different from the actual
transaction price of the comparable transactions.
Valuation of investment properties
The Company has taken the highest and best use fair values for
the fair value measurement of its investment properties. Investment
properties are measured under level 3 of fair value hierarchy.
Valuation Significant Interrelationship
technique unobservable between key unobservable
inputs inputs and fair
value measurements
The estimated fair
value increase/decrease
if:
1) Sales
comparative * Freehold property * The property is not freehold
valuation
approach
* Free of covenants, third party right * The property is subject to any covenants, rights an
s and obligations d
obligations
* Statutory and legal validity
* The property is subject to any adverse legal
notices/judgement
* Condition of the property
* The property is subject to any defect/damages
* Sales value of comparable properties
* The property is subject to sales value fluctuations
* Development costs of surrounding properties in the area.
2016 2015
USD USD
Balance as at 1 July 13,913,682 16,460,040
Unrealised loss on fair
value (2,901,592) (2,546,358)
Realised sale proceeds (4,346,327) -
from sale of property
Realised loss on sale of (35,714) -
property
-------------- --------------
6,630,049 13,913,682
========= =========
During the year, the Group management has sold a property on
which they have received a gross consideration of USD 6.53 million
and the amount payable to the acquirer on such disposal (refer note
7.1) has been adjusted against the receivable from the acquirer in
accordance with the settlement agreement dated 14 September
2012.
11. Due to a shareholder
In accordance with the Group's placement document issued at the
time of the Initial Public Offer (IPO), the shareholding of
individual investors from the IPO cannot exceed eight percent of
the issued and fully paid share capital. This balance represents
funds received from a shareholder in excess of the eight percent
limit and is refundable to the shareholder unless the Group is able
to secure additional capital from the other shareholders.
12. Trade and other payables
2016 2015
USD USD
Trade payables 17,017 -
Audit fee payable 21,200 17,850
Other payables 816 816
------------- -------------
39,033 18,666
======== ========
13. Share capital
The authorised share capital of the Company comprises 100million
shares of USD 0.01 each (2015: 100 million shares of USD 0.01
each).
The issued and fully paid share capital of the Company comprises
27,708,864 shares of USD 0.01 each (2015: 27,708,864 shares of USD
0.01 each).
14. Share premium
Share premium represents amounts received from shareholders in
excess of the nominal value of the shares allotted to them.
15. Administrative and other operating expenses
2016 2015
USD USD
Legal and professional
fees 136,114 128,834
Administration fees 2,785 5,235
Directors' remuneration
and fees 27,500 17,500
Salary expense for
CEO (note 15.1) 5,557 11,514
Others 5,544 4,417
---------- ----------
177,500 167,500
====== ======
15.1 Subsequent to the year ended 30 June 2013, the Directors
passed a resolution for cancelling the previous arrangement for
outsourcing of administrative services to an outsourcing company
Injaz Capital Investments LLC, and replaced it with a monthly
salary for the Chief Executive Officer (CEO) and his management
team of USD 2,500 per month as well as setting a maximum cap on
administrative and general expenses to USD 150,000 excluding Board
of Directors fees. USD 24,443 has been charged from the CEO's
salary in order to keep in line with this resolution.
16. Loss per share
The basic earnings per share is calculated by dividing the net
profit/loss attributable to shareholders by the weighted average
number of ordinary shares in issue during the year.
2016 2015
USD USD
Loss for the year (6,502,654) (3,251,686)
Weighted average number
of shares in issue 27,708,864 27,708,864
Basic and diluted loss
earnings per share in USD (0.235) (0.117)
====== ======
17. Related party transactions and balances
Related parties comprise shareholders, directors, key
management, businesses controlled by shareholders or directors as
well as businesses over which they exercise significant influence.
During the year, the Group entered into significant transactions
with related parties in the ordinary course of business. The
transactions and balances arising from these transactions are as
follows:
2016 2015
USD USD
Transactions
Key management compensation
for the Chief Executive Officer
and his management team 30,000 30,000
Directors' fees and other
remuneration(refer note 15) 27,500 17,500
---------- ----------
57,500 47,500
====== ======
2016 2015
USD USD
Due to related parties
Due to a shareholder(refer
note 11) 877,200 877,200
====== ======
Due to key management
personnel 476,703 489,679
Due to Injaz Capital
Investments LLC 48,220 48,220
---------- ----------
524,923 537,899
====== ======
18. Segmental reporting
Following the management approach of IFRS 8, operating segments
are reported in accordance with the internal reporting provided to
the Board of Directors (the chief operating decision-maker), which
is responsible for allocating resources to the reportable segments
and assesses its performance. The Group is managed as one unit and
therefore the Board of Directors are of the opinion that the Group
is engaged in a single segment of investing in Shari'a compliant
investments worldwide.
19. Fair value measurement - fair value hierarchy
The table below analyses financial instrument measured at fair
value at the end of the reporting period, by the level in the fair
value hierarchy into which the fair value measurement is
categorised:
Level Level 2 Level Total
2016 1 3
Available-for-sale
investment - - - -
Total - - - -
======= ============ ========== ==========
Level Level 2 Level Total
2015 1 3
Available-for-sale
investment - - 3,350,000 3,350,000
Total - - 3,350,000 3,350,000
======= ============ ========== ==========
During the year there were no fair value hierarchy transfers
between all levels above. Further, there has been no change in the
valuation techniques in relation to the valuation of financial
instruments.
The following table shows a reconciliation from the beginning
balances to the ending balances for fair value measurement in Level
3 of the fair value hierarchy:
Financial Financial
assets assets
2016 2015
Balance at 1 July 3,350,000 4,500,000
Net unrealised loss
(refer note 9) (3,350,000) (1,150,000)
---------- ----------
Balance at 30 June - 3,350,000
====== ======
Significant unobservable inputs used in measuring fair
value:
Description Fair value Valuation Unobservable Range Reasonable Change in
as at Technique input (weighted possible valuation
30 June average) shift +/-
2015 +/- US$'000
(%)
USD
Investments - Not Not Not Not applicable Not applicable
applicable applicable applicable
--------------
-
========
Fair value as at 30
June 2015
USD
Discounted
cash flow Discount
Investments 3,350,000 multiple rate 13.5% 5% (300,000)/(345,000)
Trading EV/EBITDA
comparables multiple 15.2x 5% 93,000/ (93,000)
Trading
comparables EV/Revenue 0.8x 5% 79,000/(79,000)
--------------
3,350,000
========
Valuation techniques
The fair value of investments is assessed based on multiple
valuation techniques including discounted cash flows, market
multiples', recent arm's length transactions between knowledgeable,
willing parties (if available). The Group uses the most relevant
valuation technique or combination of techniques specific to each
investment in order to determine the fair value.
The Group calibrates these valuation techniques and tests them
for validity by stress testing the investments and making an
appropriate adjustment where there could be a material effect.
Significant unobservable inputs are developed as follows:
Discount rate:
A discount rate is used to determine the net present value of
the expected future cash flows when using the Discounted Cash Flow
valuation technique. The discount rate used is specific to each
individual investment and reflects relevant factors such as
liquidity risk, political/country risk, execution risk, foreign
exchange risk etc.
EV/EBIT multiple:
Enterprise value to earnings before interest and tax (EV/EBIT)
is a measurement to share in the Group is economical, relative to
the competing firms or the wider market. EV/EBIT values the Group
regardless of its capital structure.
P/BV multiple:
The price-to-book value ratio, expressed as a multiple, is an
indication of how much shareholders are paying for the net assets
of the investment.
EV/EBITDA multiple:
Enterprise value to earnings before interest, tax, depreciation
and amortisation (EV/EBITDA), is a measurement for estimating the
investment value, by comparing the value of one company to the
value of another company within the same industry.
EV/Revenue multiple:
Enterprise value to revenue is a measure used to decide the
share price of the investment. This measure is an expansion of the
price-to-sales valuation, which uses market capitalisation instead
of enterprise value.
Financial instruments not measured at fair value
These include cash and bank balances, other receivables and
trade and other payables and are measured under level 3 of fair
value hierarchy. Management believes that the fair values of those
instruments are approximately equal to their carrying values.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR PGGPAPUPQURB
(END) Dow Jones Newswires
December 29, 2016 04:00 ET (09:00 GMT)
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