HSenid Business : Interim Financial Statements as at 31st March 2022 (amended)

INTERIM FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31ST MARCH 2022

HSENID BUSINESS SOLUTIONS PLC, NO 50, WARD PLACE, COLOMBO 07.

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HSENID BUSINESS SOLUTIONS PLC

Chief Executive Officer's Review

______________________________________________________________________________

Dear Shareholders,

We are pleased to present the financial results for the three months ending 31 March 2022 and for the full year FY22.

For the fourth quarter, hSenid Business Solutions (hBS) recorded revenues of LKR 357.3 million, compared to LKR 408.8 million in the corresponding quarter of the previous financial year. The 12.6 percent year-on-year decline was mainly due to a drop in revenues from business operations in Singapore and Africa. For the full year, revenues were LKR 1,090.8 million, recording a 13.4 percent year-on-year growth.

Group earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at LKR 351.1 million for the quarter, compared to LKR 204.3 million in the previous financial year. Growth was supported by favourable currency translations, offsetting the impact from lower revenues and an increase in operational expenses.

As a result, net profits for the quarter under review came in at LKR 343.6 million, compared to a profit of LKR 174.6 million in the corresponding quarter of the previous financial year. This results in an earnings per share (EPS) of LKR 1.46 compared to LKR

0.81 per share in the fourth quarter of the previous financial year. For the full year, net profits were LKR 455.3 million, compared to LKR 209.2 million in the previous financial year.

The quarter under review saw LKR 197.7 million in new deals confirmed. Expansion into Bangladesh is also on track, with the market expected to show further potential over the next 18-24 months. The Ugandan Government project, launched in 2019, has now entered phase two and is expected to record a notable contribution in FY23.

Looking forward, hBS will continue to provide strategic focus to its long-term objectives in line with those stated in the prospectus, including product development initiatives, and exploring potential strategic acquisitions in APAC and East African Regions.

Sgd.

---------------------------------

Sampath K. Jayasundara

Chief Executive Officer

27 May 2022

Colombo

HSENID BUSINESS SOLUTIONS PLC

STATEMENT OF FINANCIAL POSITION

	GROUP		COMPANY
	Unaudited		Audited		Unaudited		Audited
AS AT	31.03.2022	31.03.2021	31.03.2022	31.03.2021
	Rs.		Rs.		Rs.		Rs.
ASSETS
Non-Current Assets
Property, plant and equipment	20,060,449	9,463,710	19,717,549	9,245,801
Right of use Assets	28,233,890	40,468,176	20,478,877	37,975,677
Intangible assets	214,888,450	160,497,821	206,040,983	158,092,148
Goodwill on acquisition	2,008,131	2,008,131	-	-
Investments in subsidiaries	-	-	136,859,362	136,859,362
Deferred tax assets	-		2,455,682		-		2,422,063
	265,190,920	214,893,519	383,096,771	344,595,051
Current Assets
Inventories	29,685,786	19,659,971	29,685,786	19,659,971
Trade and other receivables	530,898,771	444,859,200	601,689,787	531,696,507
Advances and prepayments	66,315,496	51,102,115	8,389,732	6,218,041
Other current financial assets	1,083,462,924	258,835,421	1,083,462,924	258,835,421
Cash and bank balances	413,247,696		261,483,690		215,679,628		107,709,392
	2,123,610,673		1,035,940,397		1,938,907,858		924,119,332
Total Assets	2,388,801,592	1,250,833,916	2,322,004,629	1,268,714,383
EQUITY AND LIABILITIES
Capital and Reserves
Stated capital	922,748,205	224,036,627	922,748,205	224,036,627
Currency translation reserve	13,097,441	17,775,308	-	-
Retained earnings	927,532,378		527,476,218		1,008,745,111		679,757,364
Total Equity	1,863,378,023	769,288,153	1,931,493,316	903,793,990
Non-Current Liabilities
Retirement benefit obligation	80,744,970	71,432,216	80,744,970	71,432,216
Interest bearing borrowings	4,277,354	28,370,123	3,658,420	28,370,123
Deferred tax liability	1,822,942		-		1,829,107		-
	86,845,266	99,802,339	86,232,497	99,802,339
Current Liabilities
Trade and other payables	319,021,712	275,594,334	191,942,453	161,587,783
Deferred income	81,481,592	58,965,318	81,481,592	58,965,318
Interest bearing borrowings	31,989,169	39,861,757	24,768,940	37,309,251
Income tax payable	6,085,830		7,322,016		6,085,830		7,255,702
	438,578,304		381,743,424		304,278,816		265,118,053
Total Equity and Liabilities	2,388,801,592	1,250,833,916	2,322,004,629	1,268,714,383

These financial statements are in compliance with the requirements of the Companies Act No. 7 of 2007.

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Sgd.

Raveen Lasath

Head of Finance

The Board of Directors is responsible for these financial statements. Signed for and on behalf of the Board by;

Sgd.	Sgd.
Sampath Jayasundara	Malinga Arsakularatne
CEO/Director	Director
May 27, 2022
Colombo

HSENID BUSINESS SOLUTIONS PLC

STATEMENT OF COMPREHENSIVE INCOME - GROUP

	For the three Months ended		Year Ended 31st March
	Unaudited		Unaudited	Change	Unaudited		Audited	Change %
	31.03.2022	31.03.2021		%	31.03.2022	31.03.2021
	Rs.		Rs.		Rs.		Rs.
Revenue	357,296,984	408,796,004		-13%	1,090,790,758	961,479,240		13%
Cost of sales	(127,573,158)	(129,542,895)		-2%	(473,305,600)	(447,986,249)		6%
Gross profit	229,723,826	279,253,110		-18%	617,485,158	513,492,991		20%
Other income	283,719,384	28,470,752		897%	291,318,934	32,882,122		786%
Administrative expenses	(57,937,931)	(41,086,993)		41%	(194,551,831)	(143,144,634)		36%
Selling and marketing expenses	(104,646,080)	(62,052,758)		69%	(196,998,521)	(114,883,633)		71%
Finance cost	(1,467,462)	(6,458,478)		-77%	(5,757,535)	(7,497,161)		-23%
Finance income	24,018,445	7,161,268		235%	32,003,790	10,961,525		192%
Other operating expenses	(20,777,736)	(16,947,657)		23%	(76,278,723)	(68,956,273)		11%
Profit before tax	352,632,446	188,339,242		87%	467,221,272	222,854,936		110%
Tax (expense)/reversal	(9,000,126)	(13,710,894)		-34%	(11,902,554)	(13,664,042)		-13%
Profit for the period	343,632,320	174,628,349		97%	455,318,718	209,190,894		118%
Other comprehensive income
Exchange Gain/(Loss) on translation of foreign	(1,348,626)	3,948,707			(4,677,867)	9,940,285
Re-measurements of defined benefit obligations	2,074,258	-			2,074,258	-
Deferred tax on Re-measurements of defined
benefit obligations	(44,061)	-			(44,061)	-
Total comprehensive income for the period	344,313,891	178,577,055			452,671,048	219,131,179
Profit for the period
Equity holders of the Company	343,632,320	174,628,349			455,318,718	209,190,894
Non-controlling interest	-	-			-	-
Total comprehensive income/profit for the period
Equity holders of the Company	344,313,891	178,577,055			452,671,048	219,131,179
Non-controlling interest	-	-			-	-
Earnings Per Share - Basic	1.46	0.81			1.93	0.96

HSENID BUSINESS SOLUTIONS PLC

STATEMENT OF COMPREHENSIVE INCOME - COMPANY

		For the three Months ended	Year Ended 31st March
		Unaudited		Unaudited	Change %	Unaudited		Audited	Change %
		31.03.2022	31.03.2021	31.03.2022	31.03.2021
		Rs.		Rs.		Rs.		Rs.
Revenue	317,688,755	314,558,849	1%	933,782,756	807,361,031	16%
Cost of sales	(111,383,086)		(101,334,833)	10%	(356,009,881)		(312,003,666)	14%
Gross profit	206,305,669	213,224,017	-3%	577,772,874	495,357,365	17%
Other income	282,720,616	26,925,897	950%	287,299,698	27,301,168	952%
Administrative expenses	(46,742,590)	(32,089,325)	46%	(150,677,121)	(109,550,384)	38%
Selling and marketing expenses	(184,114,947)	(60,670,420)	203%	(270,497,943)	(109,196,046)	148%
Finance cost	(1,097,668)	(6,041,219)	-82%	(5,277,724)	(7,086,858)	-26%
Finance income	24,018,445	7,076,635	239%	32,003,790	10,877,490	194%
Other operating expenses	(20,048,685)	(16,759,218)	20%	(75,157,438)	(66,228,736)	13%
Profit before tax	261,040,839	131,666,366	98%	395,466,137	241,473,999	64%
Tax (expense)/reversal	(9,006,291)	(13,674,893)	-34%	(11,215,831)	(13,674,893)	-18%
Profit for the period					114%				69%
	252,034,548	117,991,473	384,250,306	227,799,105
Other comprehensive income
Exchange Gain/(Loss) on translation of foreign
operations	-	-		-	-
Re-measurements of defined benefit obligations	2,074,258	-		2,074,258	-
Deferred tax on Re-measurements of defined
benefit obligations	(44,061)	-		(44,061)	-
Total comprehensive income for the period		254,064,745		117,991,473		386,280,503		227,799,105
Profit for the period
Equity holders of the Company	252,034,548	117,991,473		384,250,306	227,799,105
Non-controlling interest	-	-		-	-
Total comprehensive income/profit for the period
Equity holders of the Company	254,064,745	117,991,473		386,280,503	227,799,105
Non-controlling interest	-	-		-	-
Earnings Per Share - Basic	1.07	0.54		1.63	1.05