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MAINLAND REAL ESTATE LIMITED - Abridged unaudited financial statements for the three months ended 30 June 2017

Release Date: 15/08/2017 08:50
Code(s): MLD     PDF:  
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Abridged unaudited financial statements for the three months ended 30 June 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

Abridged unaudited financial statements
for the three months ended 30 June 2017

DIRECTORS COMMENTARY

NATURE OF BUSINESS

Mainland Real Estate Ltd ("Mainland" or the "Company") 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.

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 REVIEW FOR THE QUARTER ENDED 30 JUNE 2017

The Company hereby presents its results for the three months ended 30 June 2017.
During the quarter ended 30 June 2017, the weakening of the GBP against ZAR resulted in a net
unrealised loss on financial assets at fair value through profit or loss.

COMPANY OUTLOOK

Mainland intends to grow its portfolio of listed property securities and investments, mainly through
strategic investments, into listed and direct property investment sector. The Board of directors of
the Company ("the Board") remain on the lookout for and is actively pursuing opportunities that
fall within the ambit of Mainland's investment strategy.

STATEMENT OF FINANCIAL POSITION

                                                     Unaudited        Audited        Unaudited
                                                  30 June 2017  31 March 2017     30 June 2016
                                                           GBP            GBP              GBP
  
ASSETS  
Current assets  
Financial assets at fair value through profit  
or loss                                                599 338        614 321                -
Trade and other receivables                             10 555          4 682            1 209
Cash and cash equivalents                              612 246        676 139          673 860
   
Total current assets                                 1 222 139      1 295 142          675 069
    
Total assets                                         1 222 139      1 295 142          675 069
   
EQUITY AND LIABILITIES  
Capital and reserves  
Share capital                                        1 255 984      1 255 984          670 100
(Accumulated losses)/Retained earnings                (50 456)        17 665           (4 004)
   
Total equity                                         1 205 528      1 273 649          666 096
  
Current liabilities  
Trade and other payables                                16 611         21 493            8 973
   
Total current liabilities                               16 611         21 493            8 973
   
Total equity and liabilities                         1 222 139      1 295 142          675 069
   
Actual number of shares in issue                       884 042        884 042          591 100
Net asset value per share (GBP pence)                   136,37         144,07           112,69

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

                                                    Unaudited           Audited      Unaudited
                                                      For the  For the thirteen        For the
                                                quarter ended      months ended  quarter ended
                                                 30 June 2017     31 March 2017   30 June 2016
                                                          GBP               GBP            GBP

Revenue                                              (14 982)            47 842          3 783
Other expenses                                       (20 963)         (107 173)        (7 529)
Foreign exchange (loss)/gain                         (32 176)            76 995              -
    
Operating (loss)/profit                              (68 121)            17 664        (3 746)
Other income                                                -                 3              -
Finance cost                                                -               (2)          (258)
    
(Loss)/Profit before tax                             (68 121)            17 665        (4 004)
Taxation                                                    -                 -              -
    
(Loss)/Profit for the period                         (68 121)            17 665        (4 004)
Other comprehensive income for the period                   -                 -              -
Total comprehensive income for the    
period                                               (68 121)            17 665        (4 004)
    
Weighted average number of shares in    
issue                                                 884 042           544 851        150 825
    
Basic and diluted earnings/(loss) per share    
(GBP pence)                                            (7,71)              3,24         (2,65)
    
Basic and diluted headline earnings/ (loss)    
per share (GBP pence)                                  (7,71)              3,24         (2,65)

The Company has no dilutionary
instruments in issue.

RECONCILIATION OF BASIC EARNINGS TO DISTRIBUTABLE EARNINGS

                                                    Unaudited           Audited      Unaudited
                                                      For the  For the thirteen        For the
                                                quarter ended      months ended  quarter ended
                                                 30 June 2017     31 March 2017   30 June 2016
                                                          GBP               GBP            GBP

(Loss)/profit for the period attributable to
owners of the parent                                 (68 121)            17 665        (4 004)
    
Headline (loss)/earnings                             (68 121)            17 665        (4 004)
Adjusted for once-off costs    
 Bank charges : Account opening fee                         -             5 756              -
 Listing and advisory fees                                  -            20 640              -
 Transaction costs                                          -            10 000              -
    
Adjusted headline (loss)/earnings/    
Distributable (loss)/earnings                        (68 121)            54 061        (4 004)
     
Adjusted headline (loss)/earnings per share     
(GBP pence)                                            (7,71)              9,92         (2,65)

STATEMENT OF CHANGES IN EQUITY

                                                                  (Accumulated
                                                                      losses)/
                                                     Ordinary         Retained
                                                share capital         earnings           Total
                                                          GBP              GBP             GBP
 
Issue of shares                                       670 100                -         670 100
Loss for the period                                         -          (4 004)         (4 004)
 
Balance as at 30 June 2016                            670 100          (4 004)         666 096
  
Issue of shares                                     1 097 884                -       1 097 884
Profit for the period                                       -           21 669          21 669
 
Balance as at 31 March 2017                         1 767 984           17 665       1 785 649
 
Loss for the period                                         -         (68 121)        (68 121)
 
Balance as at 30 June 2017                          1 767 984         (50 456)       1 717 528
 

STATEMENT OF CASH FLOWS

                                                    Unaudited           Audited      Unaudited
                                                      For the  For the thirteen        For the
                                                quarter ended      months ended  quarter ended
                                                 30 June 2017     31 March 2017   30 June 2016
                                                          GBP               GBP            GBP

Cash flows from operating activities
Cash utilised in operations                          (31 463)          (43 561)          3 760
Interest received                                           -               619              -
Dividend received                                           -               926              -
Interest paid                                               -               (2)              -
  
Net cash utilised in operating activities            (31 463)          (42 018)          3 760
  
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        670 100
    
Net cash generated from financing    
activities                                                  -         1 255 984        670 100
    
Net increase in cash and cash  
equivalents for the period                           (31 463)           630 770        673 860
Foreign exchange movement                            (32 430)            45 369              -
Cash and cash equivalents at the beginning  
of the period                                         676 139                 -              -
  
Cash and cash equivalents at end of the  
period                                                612 246           676 139        673 860

NOTES

The Company is required to publish financial results for the three months ended 30 June 2017 in
terms of the Listing Rule 12.19 of the SEM. Accordingly this announcement presents the financial
results of the Company in respect of the period from 1 April 2017 to 30 June 2017.

The abridged unaudited financial statements for the three months ended 30 June 2017 ("abridged
unaudited financial statements") have been prepared on the basis of accounting policies of the
Company, which are in compliance with the International Financial Reporting Standards ("IFRS").
The abridged unaudited financial statements are in accordance with the measurement and
recognition requirements of IFRS, the requirements of IAS 34: Interim Financial Reporting, the
SEM Listing Rules and the Mauritian Securities Act 2005.

The abridged unaudited financial statements have not been reviewed or audited by the
Company's external auditors. These financial statements were approved by the Board on
14th August 2017.

Copies of the abridged unaudited financial statements 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 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 communiqué is issued pursuant to SEM Listing Rule 12.20 and section 88 of the Mauritian
Securities Act 2005. The Board accepts full responsibility for the accuracy of the information
contained in this announcement. The directors are not aware of any matters or circumstances
arising subsequent to the period ended 30 June 2017 that require any additional disclosure or
adjustment to the financial statements.

By order of the Board

Intercontinental Fund Services Limited
Company Secretary

14 August 2017

Intercontinental Fund Services Limited

SEM authorised representative and sponsor
Perigeum Capital

JSE sponsor
Java Capital


Date: 15/08/2017 08:50:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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