Interim Report

Fandango Holdings plc / Index: LSE / Epic: FHP / Sector: Investment

Fandango Holdings plc ("Fandango" or the "Company")

Interim Report

For the Period Ended 28 February 2018

Chairman’s Report

Fandango is an investment company incorporated on 25 August 2016, with the original primary objective of undertaking a single acquisition of a target company, business or asset in the industrial or service sector.

Pursuant to the foregoing, the directors were pleased to announce on 25th May 2018  that it had signed a non-binding letter of intent ("LOI") to acquire the entire issued share capital of two limited liability companies, Corporate Commercial Collections Limited and Vatbridge Limited and other related and associated companies (together, the “Potential Targets”) in exchange for the issue and allotment of 908,378,000 new ordinary shares in the Company, in addition to other consideration (the “Acquisition”). The Potential Targets operate in the factoring and finance service sector. The Acquisition, if completed, would result in Fandango shareholders having a minority interest in the enlarged group (the "Group").

The directors are pleased to have agreed heads of terms with the management for the acquisition of these highly profitable and rapidly growing businesses, which operate in the factoring and financial services sector.  Fandango has sufficient cash resources to complete the transaction without the need for an equity raise.

The Acquisition is subject, inter alia, to the completion of due diligence, documentation and compliance with all regulatory requirements, including the Listing and Prospectus Rules and, as required, the Takeover Code.   The Acquisition, if it proceeds, will constitute a Reverse Takeover under the Listing Rules since, inter alia, in substance it will result in a fundamental change in the business of the issuer.    As the Acquisition will constitute a Reverse Takeover under the Listing Rules, the Company requested that the listing in the Company's ordinary shares be suspended pending the publication of a prospectus and the application for the enlarged Company to have its Ordinary Shares admitted to the Official List and to trading on the main market for listed securities of the London Stock Exchange.  

 

The Company is working on the preparation of a prospectus in relation to the Acquisition and will, in due course, be making application for the enlarged Company to have its Ordinary Shares admitted to the Official List and to trading on the main market for listed securities of the London Stock Exchange.

Results for the period

For the period from 1 September 2017 to 28 February 2018, the Company's results included the ongoing running costs of the Company including listing fees on the London Stock Exchange and other advisory costs.

Risks and uncertainties

The Company is a relatively new entity, with only a brief operating history, and therefore, investors have no basis on which to evaluate the Company’s ability to achieve its objective of identifying, acquiring and operating one or more companies or businesses or whether the Company will be able to complete the acquisition of Corporate Commercial Collections Limited and Vatbridge Limited and related and associated companies.

Going Concern

As stated in Note 1 to the condensed financial statements, the directors are satisfied that the Company has sufficient resources to continue in operation for the foreseeable future, a period of not less than 12 months from the date of this report. Accordingly, they continue to adopt the going concern basis in preparing the condensed financial statements.

Post Balance Sheet Events

On 25th May 2018 the Company announced it had signed a non-binding letter of intent ("LOI") to acquire the entire issued share capital of two limited liability companies, Corporate Commercial Collections Limited and Vatbridge Limited and other related and associated companies in exchange for the issue and allotment of 908,378,000 new ordinary shares in the Company, in addition to other consideration.

Responsibility Statement

We confirm that to the best of our knowledge:

(a)    the condensed set of financial statements has been prepared in accordance with IAS 34 ‘Interim Financial Reporting’;

(b)    the interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year; and

(c)      the interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties’ transactions and changes therein).

Cautionary statement

This Interim Management Report (IMR) has been prepared solely to provide additional information to shareholders to assess the Company’s strategies and the potential for those strategies to succeed. The IMR should not be relied on by any other party or for any other purpose.

Charles Tatnall

Chairman

29 May 2018

FANDANGO HOLDINGS PLC

INTERIM CONDENSED STATEMENT OF COMPREHENSIVE INCOME

                                                             Six months ended    Six months ended    ended                                                                                                                                           28-Feb 2018              28-Feb 2017                 31 August 2017                                                                                                                           GBP (‘000)                 GBP (‘000)                     GBP (‘000)                                                                                                                                    (audited)                  (unaudited)                 (unaudited) 

                                         Notes

Administrative expenses                         (153)                                 -                            (77)

Listing costs                                                -                                    -                            (123)

Admission costs                                          -                                    -                                -

                                                             ───────                      ───────                   ───────

Loss before taxation                              (153)                                  -                            (200)

Taxation                                                      -                                     -                                -

                                                              ───────                      ───────                   ───────

Loss for the period                                 (153)                                  -                              -200

                                                              ═══════                       ═══════                   ═══════

Basic and diluted

loss per share (pence)       2                    (0.11p)                                -                             (0.15p)

                                                               ───────                      ───────                    ───────

FANDANGO HOLDINGS PLC

INTERIM CONDENSED STATEMENT OF CHANGES IN EQUITY

                                         Share Capital         Share premium        Retained earnings      Total Equity                                     

                                         GBP (‘000)               GBP (‘000)                  GBP (‘000)                       GBP (‘000)

Equity at the start  

of the period                       -                               -                                      -                                         -

Total recognised

income and expense

for the period                     -                               -                                       -                                           -

Issue of share capital        -                                -                                       -                                          -

                                      ──────                     ──────                       ───────                         ──────

Equity at 28 February 2017

                                            -                                 -                                           -                                          -

Loss for the Period           -                                 -                                       (200)                                   (200)

Issue of share capital    134                           756                                     -                                           890

Share issue costs                                            (177)                                                                               (177)

                                    ──────                   ──────                           ──────                             ──────

Equity at 31 August 2017   134                      579                                  (200)                                     513

Loss for the Period            -                             -                                        (153)                                     (153)

                                    ──────                     ──────                          ──────                             ──────

Equity at 28 February 2018  134                   579                                  (353)                                    360

                                    ══════                   ══════                           ═══════                           ══════

FANDANGO HOLDINGS PLC

INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION

 

 

                                                                              As at                       As at                As at

                                                                             28 February           28 February     31 August

                                                                             2018                       2017                   2017

                                                                             GBP (‘000)            GBP (‘000)      GBP (‘000)

                                                                             (unaudited)           (unaudited)      (audited)

Assets                                                    Notes

Current assets

Prepayments and other receivables                        71                              -                       53

Cash and cash equivalents                                      323                            -                       468

                                                                               ───────              ───────           ───────

Total Assets                                                              394                           -                       521

                                                                                ═══════              ═══════           ═══════

Equity and Liabilities

Share capital                                            3              134                            -                       134

Share premium                                                         579                           -                        579

Retained earnings                                                   (353)                         -                        (200)

                                                                               ───────              ───────             ───────

Total Equity                                                              360                          -                          513

Current Liabilities

Trade and other payables                                         34                            -                           8

                                                                              ───────               ───────              ───────

Total Liabilities                                                          34                            -                           8

                                                                              ───────                ───────              ───────

Total Equity and Liabilities                                      394                           -                           521

                                                                              ═══════                 ═══════              ═══════

FANDANGO HOLDINGS PLC

INTERIM CONDENSED CASH FLOW STATEMENT

                                                           Six months ended       Six months ended       Year ended

                                                           28 February 2018       28 February 2017        31 August 2017

                                                           GBP (‘000)                 GBP (‘000)                  GBP (‘000)

                                                           (unaudited)                (unaudited)                  (audited)

Cash flows from operating activities

Operating loss                                       (153)                               -                                 (200)

(Increase)/decrease in receivables       (18)                                 -                                  (53)

Increase/(decrease) in payables            26                                  -                                    8

                                                           ───────                     ───────                       ───────

Net cash flows from operating activities  (145)                          -                                 (245)

Cash flows from financing activities

Net proceeds from issue of share capital     -                              -                                   713

                                                           ───────                     ───────                       ───────

Net cash flows from financing activities      -                              -                                   713

                                                           ───────                     ───────                        ───────

Net increase/(decrease)

in cash and cash equivalents               (145)                                -                                    468

Cash and cash equivalents

at the beginning of the period             468                                 -                                       -

                                                          ───────                     ───────                          ───────

Cash and cash equivalents

at the end of the period                       323                                 -                                      468

                                                          ═══════                     ═══════                           ═══════

 

NOTES TO THE UNAUDITED INTERIM CONDENSED REPORT

1.       General Information

Fandango Holdings Plc (‘the company’) is an investment company incorporated in the United Kingdom. The address of the registered office is 27-28 Eastcastle Street London W1E 8DN. The Company was incorporated and registered in England on 25 August 2016 as a private limited company and re-registered as a public limited company on 8 May 2017.

Basis of preparation

This announcement was approved and authorised to issue by the Board of directors on 28 May 2018.

The financial information in this interim report has been prepared in accordance with the International Financial Reporting Standards. IFRS comprises standards issued by the International Accounting Standards Board (IASB) and the interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC) as adopted by the European Union (EU).

There are no IFRS, or IFRIC interpretations that are effective for the first time in this period that would be expected to have a material impact on the company.

The financial information has been prepared under the historical cost convention, as modified by the accounting standard for financial instruments at fair value.

The same accounting policies and methods of computation are followed in the interim financial statements as compared with the most recent annual accounts

No transactions with regard to the Heads of terms to acquire Corporate Commercial Collections Limited and Vatbridge Limited and related or associated companies have been reflected in the financial statements for the interim period;

The Directors are of the opinion that the financial information should be prepared on a going concern basis, in the light of the Company's financial resources.

These condensed interim financial statements for the six months ended 28 February 2018 and 28 February 2017 are unaudited and do not constitute full accounts. The comparative figures for the period ended 31 August 2017 are extracted from the 2017 audited financial statements. The independent auditor’s report on the 2017 financial statements was not qualified.

No taxation charge has arisen for the period and the Directors have not declared an interim dividend.

Copies of the February 2018 interim report can be found on the Company’s website at www.fandangoholdingsplc.com.

Going concern

The directors are satisfied that the Company has sufficient resources to continue in operation for the foreseeable future, a period of not less than 12 months from the date of this report. Accordingly, they continue to adopt the going concern basis in preparing the condensed financial statements.

There are no significant events or transactions that have caused changes to the financial position and performance of the entity since the end of the last annual accounting period. 

2. Loss per share

Basic loss per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.

For diluted loss per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares.

The calculation of basic and diluted earnings per share is based on the following figures:

                                                      Period ended           Period ended            Period ended

                                                     28 February 2018     28 February 2017      31 August 2017

                                                     GBP                           GBP                          GBP

                                                     (unaudited)             (unaudited)              (audited)

Loss for the period                      (153,108)                          -                         (199,990)

Weighted average number of

shares – basic                               134,002,000                  2                         134,002,000

Weighted average number of

 shares – diluted                           159,002,000                 2                          159,002,000

Basic and diluted earnings per share   (0.11p)                  -                            (0.15p)

                                                        ───────               ───────                   ───────

The diluted loss per share relates to the issue of 25,000,000 warrants to the Directors which confers the right but not the obligation to subscribe in cash for up to 25,000,000 £0.01p Ordinary Shares at the subscription price.

3. Share Capital

                                                            As at                          As at                          As at

                                                           28 February 2018     28 February 2017      31 August 2017

                                                           GBP (‘000)              GBP (‘000)                 GBP (‘000)     

                                                           (unaudited)             (unaudited)                 (audited)

134,002,000 Ordinary shares

of £0.001 each                                        134                              -                                 134

                                                              ───────                ───────                    ───────

4. Reports

A copy of this announcement will be mailed to shareholders and copies will be available for members of the public at the Company's Registered Office 27-28 Eastcastle Street London W1E 8DN