EQS-Adhoc: Achiko Limited: ACHIKO LIMITED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER, 2019
EQS Group-Ad-hoc: Achiko Limited / Key word(s): Annual Results ACHIKO LIMITED ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER, 2019 Last year was a transformative year for Achiko. In addition to working on its payments business and becoming listed on SIX, the Swiss stock exchange, in 2019 the company embarked on creating an end-to-end solution that could disrupt the market by evolving from a largely single-product payments business focussed on Indonesia to a global, multifaceted payments, entertainment and community platform business targeting South-East Asia and also India. This involves extending and expanding on the company's fintech experience as a games payment gateway to create a unique "pay, play and stay" platform. This platform is targeting specifically the two billion people in South-East Asia and also India who enjoy gaming and other leisure services, as well as the growing Asian middle class that is looking for support with money management. Financial highlights Based on a comparison of the 2019 Revenue as set out in the Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2019 compared to the 2018 Revenue as set out in the table for Group Revenue and Group Profit and Loss on a combined basis in Note 4 of the Consolidated Financial Statements for the year ended 31 December 2018, Revenue decreased by 14% to USD 6.47m from USD 7.48m. Moreover, better funded competitors were able to offer much better payment terms, which led to the loss of some large and higher profit margin customers as well. This resulted in a decrease in Gross margin on revenue from 8% to 4% and Gross profit decreased by 50% to USD 0. 29m[1] from USD 0.58m[2]. This and the higher expenses due to transforming the business and becoming listed on SIX also meant that Earnings before interest and tax (EBIT) (corresponding to loss from operation) decreased by 94% to USD -6.29m[3] from USD -3.23m[4] and Net Loss After Interest and Tax (corresponding to loss for the year) increased by 117% in 2019 to USD -6.92m[5] from USD -3.18m[6]. Listing the company, bringing the business parts together and making investments in product development saw Operating expenses increased by 72% to USD 6.58m[7] from USD 3.81m[8]. Further, in 2019, Achiko settled its obligations under a promissory note agreement (see Note 18). If EBIT (corresponding to loss from operation) is "normalised" by adding back one-off listing and restructuring costs of approximately USD 2.62m and the increase in salaries of USD 0.78m in 2019, then the EBIT (corresponding to loss from operation) before one-off costs and the increase in salaries is -USD 2.88m. This represents an improvement of 11%. Our balance sheet strengthened considerably in 2019. Based on the Consolidated Statement of Financial Position, Total Equity improved by 405% to USD1.90m from -USD0.63m. Trade creditors and Trade Payables and other payables remained relatively constant. Cash provided by financing activities increased by 144% to USD 7.89m[9] from USD 3.23m[10] and Cash on hand and in banks increased by 225% to USD 0.59m from USD 0.18m based on the Consolidated Statement of Financial Position. We have many reasons to be optimistic about the coming year. Shortly before the company's listing on SIX last November, the funding restraints we had during most of last year were resolved. The one-off costs outlined above will, by nature, not affect financial results for 2020. Today, Achiko Limited has a host of strong partnerships and a variety of future announcements that indicate the promise of its new direction. Our partnership with TrustScan, which was announced recently, exemplifies this promise. This announcement is good news for Achiko's shareholders and the global community in the midst of the all the news of doom and gloom that has come with the COVID-19 pandemic. It also shows how Achiko can deliver an expanded set of services and have a positive role to play in the post-pandemic economy. The TrustScan partnership means that any user with an Achiko identity can get an authenticated digital certificate on their smartphone at the same time as they take a COVID-19 test. Using TrustScan's patent-pending technology, places such as offices, factories, schools, airports, hotels or taxis can view that certificate to be sure of the test status of users coming through their doors, copying it for audit purposes if required. The Achiko platform also offers the option for places to subsidise the cost of COVID-19 testing, creating a win for everyone: lower testing costs for users that incentivise regular testing and, for places on Achiko's platform, higher confidence about the safety of everyone inside than a simple temperature check at the door could ever provide. We hope you find the attached reports informative. Further information
Germany and Austria Switzerland
End of ad hoc announcement |
Language: | English |
Company: | Achiko Limited |
5th Floor Anderson Square Building, 64 Shedden Road, P.O. Box 31325 SMB | |
KY1-1206 Grand Cayman | |
Cayman Islands | |
Internet: | www.achiko.com |
ISIN: | KYG0101M1024 |
Valor: | 48788430 |
Listed: | Regulated Unofficial Market in Frankfurt; SIX Swiss Exchange |
EQS News ID: | 1033355 |
End of Announcement | EQS Group News Service |
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1033355 30-Apr-2020 CET/CEST