RS2 Software Plc

Interim / Quarterly Report • Aug 23, 2017

RS2 Software p.l.c. COMPANY ANNOUNCEMENT

The following is a company announcement issued by RS2 Software p.l.c. pursuant to the Malta Financial Services Listing Authority Rules Chapter 5.

Quote

At the meeting held on 22 August 2017, the Board of Directors of RS2 Software p.l.c. approved the interim financial statements for the period ended 30 June 2017. A copy of the interim financial statements is attached to this announcement.

The interim financial statements are available for viewing and download at the Company's website www.rs2.com, and can also be viewed at the Company's registered office.

Unquote

Dr Ivan Gatt Company Secretary 23 August 2017

Interim Financial Statements

For the six months ended 30 June 2017

Company Registration Number: C 25829

Condensed Interim Financial Statements

For the six months ended 30 June 2017

Contents

	Page
	1
Consolidated Interim Financial Statements:
Condensed Statements of Financial Position	4
Condensed Statements of Changes in Equity	6
Condensed Statements of Comprehensive Income	8
Condensed Statements of Cash Flows	9
Notes to the Condensed Interim Financial Statements	11
Statement pursuant to Listing Rule 5.75.3	14

Director's Report

For the six months ended 30 June 2017

This report is published in terms of Chapter 5 of the Listing Rules as prescribed by the Listing Authority in accordance with the provisions of the Financial Markets Act, 1990.

The condensed financial statements have been extracted from the unaudited consolidated accounts for the six months ended 30 June 2017 and its comparative period in 2016. The comparative balance sheet has been extracted from the audited financial statements as at 31 December 2016. The condensed interim financial statements have been prepared in accordance with accounting standards adopted for use in the EU for interim financial statements (EU adopted IAS 34 Interim Financial Reporting). In terms of Listing Rule 5.75.5, the directors state that the half-yearly financial report has not been audited or reviewed by the independent auditors.

Principal activities

The Group is principally engaged in the development, installation, implementation and marketing of specialised computer software for financial institutions, under the trade mark of BankWORKS®, and processing of payment transactions with the use of BankWORKS®.

Review of performance and business developments

The Group generated total revenues of 10.6m for the first half of 2017 demonstrating a better performance in comparison with the 9.7m reported for the first half of 2016 as a result of the net increase revenue from services and managed services as partly offset a decline in licence fees.

During 2017, the Group has started to reap returns from its past drive to increase its staff compliment to meet client demands. The new subsidiary in Manila, Philippines commenced its development and support services operations to the Malta headquarters becoming a development support centre as originally planned. Notwithstanding this, increases in cost of sales remained at a relatively stable pace compared to 2016, only increasing by 4%.

Gross Profit amounts to 5m, an increase of 17% when compared with 4.3m for the first half of 2016. The increase in Gross Profit is largely attributable to the increases in revenue whilst maintaining cost of sales at 2016 levels, though marginally higher.

Administrative and marketing expenses increased by 34% and 21% respectively. Such increases are reflective of the ongoing efforts in marketing activities, resulting in a very healthy sales pipeline for the Group whilst administrative expenses have increased as the Group continues to strengthen its administrative functions in support of the planned international growth, especially through its operational offices in US and Philippines. Such an intensive drive towards international expansion, through the subsidiaries and physical presence in the Philippines and the United States provide a strong foothold in the respective markets from where the Group is able to attract the right customers and as well as strategic partners.

Director's Report

For the six months ended 30 June 2017

Profit before tax for the Group amounts to 2.5m, an increase of 38% when compared to the same period last year. In addition to the net increases in revenue when matched to expenses, this positive result emanated from the fact that the Group was impacted by exchange losses which were lower by 52% compared to prior year and by managing to double the amount of development costs which was capitalised over the same period last year.

Performance for an accounting period may be influenced by revenue recognition criteria. In accordance with the revenue recognition policy, services, maintenance, comprehensive packages and processing revenue, which are by their nature recurring, are recognised when these are performed. License sales are recognised as revenue when a license contract is concluded, or in stages over the term of the contract depending on the nature and period of the licence granted. Due to such criteria and value of the licence contracts, the performance from one accounting period to another may not be linear.

During the first half of 2017 the Group continued its implementation of its business strategy by intensively growing its managed services business line. As announced in January 2017, RS2 Smart Processing concluded three major agreements with one of the largest acquirer in Europe, a Latin American company and a Canadian company. In addition to these new agreements, the Group has already concluded letters of intent and is in an advanced stage of contract negotiation for delivery of managed services to clients in Argentina, Australia, UK and Portugal. Implementations of these new engagements is currently underway. Revenue from these contracts is expected to be generated over the coming months and years. When completed, the number of live clients for the managed services business will multiply threefold and will consequently increase the recurring revenue from this business stream. Revenue from transaction services from these agreements is expected to start materialising in the later part of 2017.

The Group has continued to invest in the capabilities required for global expansion by attracting international talent to strengthen its senior management team. To this end, in May 2017, Mr. Patrick Clarke was appointed the new Chief Technology Officer (CTO). Mr. Clarke brings with him extensive knowledge and expertise of the payments industry having cofounded and lead OmniPay (a First Data company), a global acquirer processing company, as its CEO. Mr. Clarke is also a Certified Information Systems Security Professional (CISSP) and Payment Card Industry Qualified Security Assessor (PCI QSA).

In furthering its strategy of expansion across regional markets, on 10th July, 2017, RS2 Software p.l.c. entered into a Strategic Alliance with Quatrro Processing Services, a global FinTech company that specializes in full service payment processing. The purpose of this alliance is for Quatrro to offer an end-to-end hosted credit card processing and acquiring technology platform, for the Banks and Financial Institutions in India by making use of RS2 Software p.lc. software BankWORKS®. RS2 strategic partnership with Quatrro, the firstof-its-kind with any other payments processing company in the world, will enable the Group to gain entry into the strategically important Indian market whilst opening up multitude of opportunities. end-to-end processing capabilities and other value service proposition such as Data Analytics, Fraud and Risk Management will be utilized by RS2 to services its worldwide customer base within its Global Issuing and Acquiring business with RS2 benefitting from a profit share relating to the whole operations.

Director's Report

For the six months ended 30 June 2017

Over the past year the Group has continued to build its strong network established with reputable market service providers and individuals in the United States. The important milestone achieved by the Group over the past two years in securing a sponsorship for its managed services business in the US makes it well poised in its development of its business in the USA. The United States market is ripe with opportunities for the Group as BankWORKS® offers a high level of flexibility and modularity, which is lacking in legacy systems currently in use today.

The Group is also currently actively pursuing new opportunities with partners in Indonesia and Australia to offer mainly managed services solutions. These markets show significant potential for growth in the payment industry and the Group is well positioned to take advantage of this opportunity.

Sales pipeline across the different regions and across the two business lines is very healthy and conducive to successfully implementing the expansion strategy.

Related party transactions

Similar to what was reported in the financial statements for the year ended 31 December 2016, the Group had related party transactions with its parent company and other entities in which the directors of the Company, or their immediate relatives, have an ownership interest.

Transactions with each category of related parties and the balances outstanding at the end of the reporting periods are set out in note 7 of the Notes to these Condensed Interim Financial Statements.

Dividends

Due to further substantial investment in infrastructure and business development, the Board is not declaring an interim dividend.

Approved by the Board of Directors on 22 August 2017 and signed on its behalf by:

Mario Schembri Radi El Haj Chairman Director

Statements of Financial Position

As at 30 June 2017

	The Group		The Company
	30.06.17 Unaudited	31.12.16 Audited	30.06.17 Unaudited	31.12.16 Audited
	Note
Assets
Property, plant and equipment	9,038,091	9,034,813	8,704,119	8,713,657
Intangible assets	6,839,736	6,815,115	5,465,436	5,327,256
Investment in subsidiaries	-	-	5,706,353	5,737,262
Other investment	131,785	131,785	131,785	131,785
Loans and receivables from related	-	-	505,685	23,751
Accrued Income	-	-	1,268,617	1,241,928
Total non-current assets	16,009,612	15,981,713	21,781,995	21,175,639
Trade and other receivables	4,271,823	1,999,493	4,174,775	1,804,112
Loans and receivables from related	2,067,238	918,566	2,664,296	1,554,951
Prepayments	372,227	624,578	285,786	425,540
Accrued income	5,720,929	6,011,551	5,170,382	6,314,841
Cash at bank and in hand	3,807,413	6,344,155	3,168,448	5,535,139
Total current assets	16,239,630	15,898,343	15,463,687	15,634,583
Total assets	32,249,242	31,880,056	37,245,682	36,810,222

Statements of Financial Position

As at 30 June 2017

	The Group		The Company
	30.06.17 Unaudited	31.12.16 Audited	30.06.17 Unaudited	31.12.16 Audited
Equity
Share capital Reserves Retained earnings	10,291,657 220,531 11,432,647	9,499,991 1,000,911 11,506,615	10,291,657 97,764 17,006,818	9,499,991 891,139 16,791,843
Total equity attributable to equity holders of the Company	21,944,835	22,007,517	27,396,239	27,182,973
Non-controlling interest	(198,742)	(142,177)	-	-
Total equity	21,746,093	21,865,340	27,396,239	27,182,973
Liabilities
Bank borrowings Deferred tax liability Employee Benefits Derivatives	1,351,821 690,107 1,940,111 63,707	1,859,899 758,265 1,922,045 84,254	1,351,821 1,441,683 1,368,931 63,707	1,859,899 1,518,485 1,356,070 84,254
Total non-current liabilities	4,045,746	4,624,463	4,226,142	4,818,708
Bank borrowings Trade and other payables Current tax payable Accruals Employee Benefits Deferred income	1,007,001 998,415 2,092,828 974,676 111,422 1,273,061	993,938 849,711 958,215 828,974 111,422 1,647,993	1,007,000 884,058 2,092,828 316,911 111,422 1,211,082	993,937 729,545 958,215 372,181 111,422 1,643,241
Total current liabilities	6,457,403	5,390,253	5,623,301	4,808,541
Total liabilities	10,503,149	10,014,716	9,849,443	9,627,249
Total equity and liabilities	32,249,242 0	31,880,056 0	37,245,682 0	36,810,222

32,249,242

Statements of Changes in Equity

For the six months ended 30 June 2017

THE GROUP

Attributable to equity holders of the Company

	Share capital	Share premium	Translation reserve	Share Option reserve	Retained earnings	Total	Non controlling interest	Total equity
Balance at 1 January 2016	8,999,991	1,292,743	115,523	120,996	15,323,249	25,852,502	(8,674)	25,843,828
Impact of correction of errors	-	-	-	-	(1,914,139)	(1,914,139)	-	(1,914,139)
Restated balance at 1 January 2016	8,999,991	1,292,743	115,523	120,996	13,409,110	23,938,363	(8,674)	23,929,689
Comprehensive income for the period (restated) Profit for the period	-	-	-	-	1,381,996	1,381,996	(35,598)	1,346,398
Other comprehensive income Foreign currency translation differences	-	-	(17,256)	-	-	(17,256)	4,505	(12,751)
Total other comprehensive
income for the period	-	-	(17,256)	-	-	(17,256)	4,505	(12,751)
Total comprehensive income for the period (restated)	-	-	(17,256)	-	1,381,996	1,364,740	(31,093)	1,333,647
Transactions with owners of the Company
Bonus Issue	500,000	(500,000)	-	-	-	-	-	-
Dividend to equity holders Share options exercised	- -	- -	- -	- (7,020)	(2,501,998) 7,020	(2,501,998) -	- -	(2,501,998) -
Balance at 30 June 2016	9,499,991	792,743	98,267	113,976	12,296,128	22,801,105	(39,767)	22,761,338
Balance at 1 January 2017	9,499,991	792,743	109,771	98,396	11,506,618	22,007,519	(142,187)	21,865,332
Comprehensive income for the period
Profit for the period	-	-	-	-	1,507,738	1,507,738	(78,987)	1,428,751
Other comprehensive income Foreign currency translation
differences Total other comprehensive	-	-	12,996	-	(86)	12,910	22,432	35,342
income for the period Total comprehensive	-	-	12,996	-	(86)	12,910	22,432	35,342
income for the period	-	-	12,996	-	1,507,652	1,520,648	(56,555)	1,464,093
Transactions with owners of the Company
Bonus Issue	791,666	(791,666)	-	-	-	-	-	-
Dividend to equity holders Share Options exercised	- -	- -	- -	- (1,709)	(1,583,332) 1,709	(1,583,332) -	- -	(1,583,332) -
Balance at 30 June 2017	10,291,657	1,077	122,767	96,687	11,432,647	21,944,835	(198,742)	21,746,093

As per SOFP 10,291,657 220,531 11,432,647 21,944,835 (198,742) 21,746,093

Statements of Changes in Equity

For the six months ended 30 June 2017

THE COMPANY

	Share
	Share capital	Share premium	Option reserve	Retained earnings	Total
Balance at 1 January 2016	8,999,991	1,292,743	120,996	19,426,460	29,840,190
Impact of correction of errors	-	-	-	(1,358,420)	(1,358,420)
Restated balance at 1 January 2016	8,999,991	1,292,743	120,996	18,068,040	28,481,770
Comprehensive income for
the year (restated)
Profit for the period	-	-	-	1,524,520	1,524,520
Total comprehensive income for the period	-	-	-	1,524,520	1,524,520
Transactions recorded directly in equity
Discount unwind	-	-	-	(15,249)	(15,249)
Transactions with owners of the Company
Bonus issue	500,000	(500,000)	-	-	-
Dividend to equity holders	-	-	-	(2,501,998)	(2,501,998)
Share options exercised	-	-	(7,020)	7,020	-
Balance at 30 June 2016	9,499,991	792,743	113,976	17,082,333	27,489,043
Balance at 1 January 2017	9,499,991	792,743	98,396	16,791,843	27,182,973
Comprehensive income for the period
Profit for the period	-	-	-	1,827,506	1,827,506
Transactions recorded directly in equity
Discount unwind	-	-	-	(30,910)	(30,910)
Transactions with owners of the Company
Bonus issue	791,666	(791,666)	-	-	-
Dividend to equity holders	-	-	-	(1,583,330)	(1,583,330)
Share options exercised	-	-	(1,709)	1,709	-
	791,666	(791,666)	(1,709)	(1,581,621)	(1,583,330)
Balance at 30 June 2017	10,291,657	1,077	96,687	17,006,818	27,396,239

As per SOFP 10,291,657 97,764 17,006,818 27,396,239

Difference - - - - -

Statements of Comprehensive Income

For the six months ended 30 June 2017

	The Group		The Company
	30.06.17 Unaudited	30.06.16 Unaudited Restated*	30.06.17 Unaudited	30.06.16 Unaudited Restated*
Continuing Operations
Revenue Cost of sales	10,574,385 (5,633,958)	9,747,355 (5,439,354)	9,425,641 (4,837,247)	8,904,462 (4,746,522)
Gross profit	4,940,427	4,308,001	4,588,394	4,157,940
Other income Marketing and promotional expenses Administrative expenses Capitalised development costs Other expenses	42,571 (441,355) (2,039,336) 457,618 (326,036)	18,889 (365,761) (1,525,364) 231,178 (673,847)	45,801 (389,759) (1,394,503) 457,618 (324,165)	10,308 (329,398) (1,201,218) 231,178 (672,363)
Results from operating activities	2,633,889	1,993,096	2,983,386	2,196,447
Finance income Finance costs	44,566 (172,401)	17,060 (193,558)	75,420 (172,369)	33,840 (178,093)
Net finance (cost)/income	(127,835)	(176,498)	(96,949)	(144,253)
Profit before income tax Income tax expense	2,506,054 (1,077,303)	1,816,598 (470,200)	2,886,437 (1,058,931)	2,052,194 (527,674)
Profit for the period	1,428,751	1,346,398	1,827,506	1,524,520
Other comprehensive income Items that are or may be reclassified to profit or loss Foreign currency translation differences on foreign operations	35,428	(12,751)	-	-
Total comprehensive income	1,464,179	1,333,647	1,827,506	1,524,520
Profit attributable to: Owners of the Company Non-controlling interest Profit for the period	1,507,738 (78,987) 1,428,751	1,381,996 (35,598) 1,346,398	1,827,506 - 1,827,506	1,524,520 - 1,524,520
Total comprehensive income attributable to:	-	-	-
Owners of the Company Non-controlling interest Total comprehensive income for the	1,520,734 (56,555)	1,364,740 (31,093)	1,827,506 -	1,524,520 -
	1,464,179	1,333,647	1,827,506 -	1,524,520
Earnings per share

* Certain amounts shown here have been restated to reflect prior year adjustments made for the provision for key management personnel post-employment benefits and for reassessment of revenue recognition criteria effecting revenue for the first 6 months of the comparative year.

Statements of Cash flows

For the six months ended 30 June 2017

	The Group		The Company
	30.06.17	30.06.16	30.06.17	30.06.16
	Unaudited	Unaudited Restated*	Unaudited	Unaudited Restated*
Cash flows from operating activities
Profit for the period	1,428,751	1,346,398	1,827,506	1,524,520
Adjustments for:
Depreciation	288,142	312,355	240,127	233,704
Amortisation of intangible assets	319,435	311,963	319,438	312,008
Capitalised development costs	(457,618)	(231,178)	(457,618)	(231,178)
Provision for impairment loss on receivables	-	(2,177)	-	(2,177)
Bad debts written off	-	-	-	-
Interest payable	54,630	77,985	54,630	77,982
Interest receivable	(5,922)	(7,483)	(5,951)	(24,263)
Unwinding of post-employment benefits	18,066	99,347	12,860	94,244
Unwinding of discount on trade receivables and
accrued income	(18,373)	23,351	(48,923)	8,103
	1,077,303	468,999	1,058,931	527,674
Income tax
Provision for exchange fluctuations	354,532	395,981	354,375	395,981
Recharge of salaries from parent company	-	87,456	-	-
Gain on disposal of motor vehicles	6,900	-	6,900
Changes in fair value of cash flow hedges	(20,546)	(9,577)	(20,546)	(9,577)
	3,045,300	2,873,420	3,341,729	2,907,021
Change in trade and other receivables	(3,239,152)	(2,093,329)	(2,950,131)	(1,965,945)
Change in trade and other payables	1,744	(121,503)	(66,967)	(358,716)
Change in parent company's balance		-	182,130	-
Cash generated from operating activities	(192,108)	658,588	506,761	582,360
Interest paid	(55,935)	(73,554)	(55,935)	(73,554)
Interest received	676	893	676	893
Income taxes paid	(2,267)	(1,729)	(101)	(134)
Net cash from operating activities	(249,634)	584,198	451,401	509,565
Cash flows from investing activities
Acquisition of property, plant and equipment	(208,619)	(190,223)	(89,964)	(190,026)
Proceeds from sale of property, plant and
equipment	6,900	-	6,900
Investment in subsidiaries	-	-	-	(112,105)
Advances to subsidiaries	-	-	(597,645)	(150,460)
Repayment of advances to subsidiaries	-	-	-	28,458
Net cash used in investing activities	(201,719)	(190,223)	(680,709)	(424,133)

* Certain amounts shown here have been restated to reflect prior year adjustments made for the provision for key management personnel post-employment benefits and for reassessment of revenue recognition criteria effecting revenue for the first 6 months of the comparative year.

Statements of Cash flows

For the six months ended 30 June 2017

	The Group		The Company
	30.06.17 Unaudited	30.06.16 Unaudited Restated*	30.06.17 Unaudited	30.06.16 Unaudited Restated*
Cash flows from financing activities Dividends paid Proceeds from bank borrowings Repayments of bank borrowings	(1,578,120) - (495,015)	(2,495,575) 377,791 (480,813)	(1,578,120) - (495,015)	(2,495,575) 377,791 (480,813)
Net cash used in financing activities	(2,073,135)	(2,598,597)	(2,073,135)	(2,598,597)
Net decrease in cash and cash equivalents Cash and cash equivalents at 1 January Effect of fair value movement Effect of exchange rate fluctuations on cash held	(2,524,488) 6,344,155 - (12,254)	(2,204,622) 7,193,681 - (84,571)	(2,302,443) 5,535,139 - (64,248)	(2,513,165) 6,634,403 - (91,559)
Cash and cash equivalents at 30 June	3,807,413	4,904,488	3,168,448	4,029,679

• -

* Certain amounts shown here have been restated to reflect prior year adjustments made for the provision for key management personnel post-employment benefits and for reassessment of revenue recognition criteria effecting revenue for the first 6 months of the comparative year.

Notes to the Condensed Interim Financial Statements

For the six months ended 30 June 2017

1 Reporting entity

RS2 Software p.l.c. (the "Company") is a public limited liability company domiciled and incorporated in Malta.

The condensed interim financial statements of the Company as at the end and for the six months ended 30 June 2017 comprise the Company and its subsidiaries (together referred to as the "Group").

2 Statement of compliance

These condensed interim financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the EU for interim financial statements (EU adopted IAS 34 Interim Financial Reporting).

The interim financial statements do not include all information required for full annual financial statements, and should be read in conjunction with the financial statements of the Group for the year ended 31 December 2016.

3 Significant accounting policies

The accounting policies applied by the Group in these condensed interim financial statements are the same as those applied by the Group in its financial statements as at and for the year ended 31 December 2016.

3.1 Determination of Fair Value

The Group has an established control framework with respect to the measurement of fair values. The reported carrying amounts of the Group's and Company's current financial instruments are the same as those applied in the last annual financial statements and are a reasonable approximation of the financial instruments' fair values in view of their short-term maturities and in the case of the derivative, this was measured at fair value.

The Group's and Company's fair values of other financial assets and liabilities, together with the carrying amounts in the statement of financial position are also a reasonable approximation of their respective fair values.

4 Segment reporting

4.1 Information about the Group's reportable segments

	Licensing		Processing		Total
	30.06.17	30.06.16	30.06.17	30.06.16	30.06.17	30.06.16
	Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Unaudited
External revenues	9,211,610	8,785,309	1,362,775	962,046	10,574,385	9,747,355
Inter-segment revenues	214,031	116,398	-	-	214,031	116,398
Segment Revenues	9,425,641	8,901,707	1,362,775	962,046	10,788,416	9,863,753
Reportable segment profit/ (loss) before income tax	2,656,844	2,040,851	(224,124)	(297,521)	2,432,720	1,743,330

Notes to the Condensed Interim Financial Statements

For the six months ended 30 June 2017

4 Segment reporting (continued)

	30.06.17 Unaudited	30.06.16 Unaudited
External revenues
Total revenue for reportable segments	10,788,416	9,863,753
Elimination of intersegment transactions	(214,031)	(116,398)
Consolidated revenues	10,574,385	9,747,355
Reportable segment profit before income tax Total reportable segment profit for reportable segments Elimination of intersegment transactions Consolidated reporatble sgment profit	2,432,720 73,334 2,506,054	1,743,330 73,268 1,816,598

5 Property, plant and equipment

During the six months ended 30 June 2017, the Group acquired assets with a cost of €306,754 (six months ended 30 June 2016: €280,138), and disposal of an asset of €21,514 (six months ended 30 June 2016: €0).

6 Intangible assets

During the six months ended 30 June 2017, the Group capitalised expenditure on the development of computer software amounting to €457,618 (six months ended 30 June 2016: €231,178).

7 Related parties

7.1 Related party transactions

Similar to what was reported in the financial statements for the year ended 31 December 2016, the Group had the following the transactions with related parties:

Notes to the Condensed Interim Financial Statements

For the six months ended 30 June 2017

7 Related parties (continued)

7.1 Related party transactions (continued)

	The Group		The Company
	30.06.17	30.06.16	30.06.17	30.06.16
	Unaudited	Unaudited	Unaudited	Unaudited
Parent company
Interest charged to	5,213	5,996	5,213	5,996
Dividend paid to	792,350	1,252,081	792,350	1,252,081
Subsidiaries
Payments for services provided to			596,953	5,753
Services provided to			557,620	526,094
Services not yet invoiced provided to			138,918	86,468
Interest charged to			-	16,860
Payments on behalf of			597,646	98,973
Recharge of salaries			188,391	152,550
Recharge of overhead to			110,980	99,638
Recharge of salaries by			56,250	43,177
Other related entities
Services provided by	836,171	583,263	836,171	559,716
Services provided to	3,131,097	2,189,766	3,131,097	2,189,766
Services not yet invoiced provided to	1,739,293	2,446,670	1,739,293	2,446,670
Services not yet invoiced provided by	(110,000)	330,000	(110,000)	330,000
Payments for services provided by	646,567	653,723	646,567	625,400
Payments for services provided to	1,916,776	1,707,575	1,916,776	1,707,575

All transactions entered into with related parties have been accounted for at fair and reasonable prices.

7.2 Related party balances

	The Group		The Company
	30.06.17	31.12.16	30.06.17	31.12.16
	Unaudited	Audited	Unaudited	Audited
Amounts receivable
Amounts owed by parent company	760,047	754,834	760,047	754,834
Amounts owed by subsidiary companies	-	-	597,051	636,385
Amounts owed by other related entities	1,307,191	163,732	1,307,197	163,732
Amounts payable Trade payables due to other related
entities	20,976	20,186	20,976	39,378

Statement pursuant to Listing Rule 5.75.3 issued by the Listing Authority

As at 30 June 2017

We confirm that to the best of our knowledge:

• the condensed interim financial statements which have been prepared in compliance with International Financial Reporting Standards as adopted by the EU for interim financial statements (EU adopted IAS 34, Interim Financial Statements), give a true and fair view of the financial position of the Group as at 30 June 2017, as well as the financial performance and cash flows for the period ended 30 June 2017; and
• the interim report includes a fair review of the information required in terms of Listing Rules 5.81 to 5.84.

Mario Schembri Radi El Haj Chairman Director