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Abridged audited financial statements for the period from 2 February 2016 (date of incorporation) to 31 March 2017
MAINLAND REAL ESTATE LTD
(Incorporated in the Republic of Mauritius)
(Registration number 135891 C1/GBL)
SEM share code: MAIN.N0000
JSE share code MLD
ISIN: MU0520N00000
(“Mainland” or “the Company”)
ABRIDGED AUDITED FINANCIAL STATEMENTS FOR THE PERIOD FROM 2 FEBRUARY 2016 (DATE OF INCORPORATION) TO
31 MARCH 2017
DIRECTORS’ COMMENTARY
NATURE OF BUSINESS
Mainland was incorporated on 2 February 2016 as a Category One Global Business Licence Company. The Company has its primary listing
on the Official Market of the Stock Exchange of Mauritius Ltd (“SEM”) and a secondary listing on the Alternative Exchange of the JSE
Limited (“AltX”). The Company has been established with the primary objective of investing in global real estate assets and companies,
predominantly situated in the United Kingdom and selected Western European jurisdictions, specifically the Netherlands and Germany.
COMPANY REVIEW FOR THE PERIOD FROM 2 FEBRUARY 2016 TO 31 MARCH 2017
The Company is pleased to present its abridged audited financial statements for the period from 2 February 2016 (date of incorporation) to
31 March 2017.
Mainland was listed on the Official Market of the SEM on 23 May 2016 and successfully achieved its secondary listing on the AltX on 9
December 2016. Since listing, the Company invested in a diversified portfolio of listed property securities and continues to trade in these, as
well as making an investment in cumulative, redeemable, non-participating preference shares.
COMPANY OUTLOOK
Mainland continues to seek suitable real estate investment opportunities. These opportunities are both in the listed and direct property
investment sector. Mainland continues to look for total returns (income and capital growth) out of its investments.
Due to the fact that the United Kingdom has voted for an exit from the European Union (“BREXIT”), the board of directors of the Company
(“the Board”) is reviewing its strategy regarding real estate investments in the United Kingdom and its other targeted investment
jurisdictions.
DIVIDENDS
No dividends were authorised or paid during the period under review.
CHANGES TO THE BOARD
Paul Reid, a non-executive director and Lyndon Bob Kan, the Chief Executive Officer resigned from the Board on 15 May and 31 May 2017
respectively. A further announcement will be made upon the appointment of a new Chief Executive Officer.
By order of the Board
23 June 2017
ABRIDGED AUDITED FINANCIAL STATEMENTS
for the period from 2 February 2016 (date of incorporation) to 31 March 2017
STATEMENT OF FINANCIAL POSITION
Audited
as at
31 March 2017
GBP
ASSETS
Current assets
Financial assets at fair value through profit or loss 614,321
Trade and other receivables 4,682
Cash and cash equivalents 676,139
Total current assets 1,295,142
Total assets 1,295,142
EQUITY AND LIABILITIES
Capital and reserves
Share capital 1,255,984
Retained earnings 17,665
Total equity 1,273,649
Current liabilities
Trade and other payables 21,493
Total current liabilities 21,493
Total equity and liabilities 1,295,142
Actual number of shares in issue 884,042
Net asset value per share (GBP pence) 144.07
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Audited
for the period from
2 Feb 2016 (date of
incorporation) to
31 March 2017
GBP
Revenue 47,842
Other expenses (107,173)
Foreign exchange gain 76,995
Operating profit 17,664
Other income 3
Finance cost (2)
Profit before tax 17,665
Taxation -
Profit for the period 17,665
Other comprehensive income for the period -
Total comprehensive income for the period 17,665
Weighted average number of shares in issue 544,851
Basic and diluted earnings per share (GBP pence) 3.24
Basic and diluted headline earnings per share (GBP pence) 3.24
The Company has no dilutionary instruments in issue.
STATEMENT OF CHANGES IN EQUITY
Ordinary Retained
share capital earnings Total
GBP GBP GBP
Issue of shares 1,767,984 - 1,767,984
Share issue costs (512,000) - (512,000)
Total comprehensive income for the period - 17,665 17,665
Balance as at 31 March 2017 1,255,984 17,665 1,273,649
STATEMENT OF CASH FLOWS
Audited
for the period from
2 February 2016
to 31 March 2017
GBP
Cash flows from operating activities
Cash utilised in operations (43,561)
Interest received 619
Dividend received 926
Interest paid (2)
Net cash utilised in operating activities (42,018)
Cash flows from investing activities
Acquisition of quoted investments (1,212,379)
Proceeds from sale of quoted investments 629,183
Net cash utilised in investing activities (583,196)
Cash flows from financing activities
Proceeds from issue of shares, net of issue costs 1,255,984
Net cash generated from financing activities 1,255,984
Net increase in cash and cash equivalents for the period 630,770
Foreign exchange movement 45,369
Cash and cash equivalents at the beginning of the period -
Cash and cash equivalents at end of the period 676,139
SEGMENTAL REPORTING
The Company is organised into one main operating segment, which invests in global real estate assets and companies.
All significant operating decisions are based upon analysis of the Company as one segment. The financial results
from this segment are equivalent to the financial statements of the Company as a whole.
RECONCILIATION OF BASIC EARNINGS TO DISTRIBUTABLE EARNINGS
Audited
for the period from
2 Feb 2016 (date of
incorporation) to
31 March 2017
GBP
Profit for the year attributable to owners of the parent 17,665
Headline earnings 17,665
Adjusted for once-off costs
Bank charges : Account opening fee 5,756
Listing and advisory fees 20,640
Transaction costs 10,000
Adjusted headline earnings / Distributable earnings 54,061
Adjusted headline earnings per share (GBP pence) 9.92
NOTES
The Company is required to publish its abridged audited financial results in terms of SEM Listing Rule 12.14.
These abridged audited financial statements for the period from 2 February 2016 (date of incorporation) to 31 March 2017 (“abridged
audited financial statements”) have been derived from the Company’s audited financial statements for the same period, which have been
prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board
(“IASB”) and in accordance with the International Accounting Standards (“IAS”) - IAS 34 Interim Financial Reporting, the SEM Listing Rules,
the Securities Act of Mauritius 2005 and the JSE Listings Requirements. The abridged audited financial statements do not include all
information and disclosures required in the audited financial statements, and should be read in conjunction with the Company’s audited
financial statements for the period from 2 February 2016 (date of incorporation) to 31 March 2017 (“audited financial statements”).
The accounting policies adopted in the preparation of these abridged audited financial statements are consistent with those applied in the
preparation of the audited financial statements.
BDO & Co have issued an unmodified audit opinion on the Company’s audited financial statements. These abridged audited financial
statements were approved by the Board on 20 June 2017.
Copies of the abridged audited financial statements and the audited financial statements, together with the audit report and the statement of
direct and indirect interests of each officer of the Company, pursuant to Rule 8(2)(m) of the Securities (Disclosure Obligations of Reporting
Issuers) Rules 2007, are available free of charge, upon request to the Company Secretary at the Registered Office of the Company at c/o
Intercontinental Fund Services Limited, Level 5, Alexander House, 35 Cybercity, Ebene 72201, Mauritius. Contact person: Mrs. Smitha Algoo.
This communique is issued pursuant to SEM Listing Rules 11.3 and 12.14, and Section 88 of the Securities Act of Mauritius 2005. The Board
of Mainland accepts full responsibility for the accuracy of the information contained in these abridged audited financial statements. The
directors of Mainland have disclosed all matters or circumstances arising subsequent to the period ended 31 March 2017 that require any
additional disclosure or adjustment to the audited financial statements.
For further information please contact:
Intercontinental Fund Services Limited
Company Secretary
Perigeum Capital Ltd
SEM authorised representative and sponsor
Java Capital
JSE sponsor
23 June 2017
Date: 23/06/2017 03:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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