NCR Nigeria Plc
THIRD QUARTER UNAUDITED CONDENSED FINANCIAL STATEMENTS 30 SEPTEMBER 2023
NCR (NIGERIA) PLC
PERIOD ENDED 30 SEPTEMBER 2023
UNAUDITED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
July-Sept | July-Sept | ||||||
30/09/2023 | 30/09/2022 | 2023 | 2022 | ||||
Note | N'000 | N'000 | N'000 | N'000 | |||
Revenue from contracts with customers | 3 | 2,443,441 | 1,739,241 | 551,194 | 861,729.37 | ||
Cost of Sales | 3.2 | (2,882,490) | (1,829,998) | (300,961) | (1,127,196) | ||
Gross profit | (439,049) | (90,757) | 250,233 | (265,467) | |||
Other income | 4 | 13,052 | 2,061 | 6,941 | 548.06 | ||
Distribution Expenses | 12 | (41,050) | (115,265) | (19,839) | (33,137.07) | ||
Administrative Expense | 13 | (926,247) | (556,415) | (230,403) | (487,158.30) | ||
(1,393,293) | (760,376) | 6,932 | (785,214) | ||||
Profit/ (Loss) before Tax | |||||||
(1,393,293) | (760,376) | 6,932 | (785,214) | ||||
Income Tax Expense | - | - | - | - | |||
Profit/ (Loss) after Tax | (1,393,293) | (760,376) | 6,932 | (785,214) | |||
Other Comprehensive Income | |||||||
Items that will not be reclassified subsequently to profit or loss: | |||||||
Actuarial loss on retirement benefit; net of tax | - | - | - | - | |||
Other Comprehensive Loss for the Year, net of Tax | - | - | |||||
Total Comprehensive Income for the Year, net of Tax | (1,393,293) | (760,376) | 6,932 | (785,214) | |||
Earnings per share data: | |||||||
Basic/ diluted earnings/ (loss) per share (Naira) | (12.90) | (7.04) | 0.06 | (7.27) |
NCR (NIGERIA) PLC
PERIOD ENDED 30 SEPTEMBER 2023
UNAUDITED STATEMENT OF FINANCIAL POSITION
30/09/2023 | 31/12/2022 | |||
ASSETS | Note | USD | N'000 | N'000 |
Non-current assets | 33,396 | |||
Property, plant and equipment | 14 | 22,262 | ||
Retirement benefit assets | 49,229 | 49,229 | ||
Deferred Tax Assets | - | - | ||
Total non-current assets | ||||
82,625 | 71,491 | |||
Current assets | ||||
Inventories | 5 | 254,048 | 372,820 | |
Trade and other receivables | 6 | 2,717,399 | 3,307,591 | |
Prepayments | 7 | 41,759 | 330,948 | |
Financial Derivatives | - | - | ||
Cash and Cash equivalents | 8 | 1,247,764 | 227,233 | |
Current Tax Receivable | ||||
Total current assets | ||||
4,260,970 | 4,238,592 | |||
Total assets | 4,343,596 | 4,310,084 | ||
Equity and Liabilities | ||||
Share capital | 54,000 | 54,000 | ||
Retained earnings | (3,206,195) | (1,812,902) | ||
Other reserves | (86,260) | (86,260) | ||
Total equity | (3,238,455) | (1,845,162) | ||
Non-current liabilities | ||||
Trade and other payables | 2,583,097 | 2,583,097 | ||
Deferred Tax Liability | - | - | ||
Total non-current liabities | ||||
2,583,097 | 2,583,097 | |||
Current liabilities | 4,680,041 | 3,292,927 | ||
Trade and other payables | 9 | |||
Contract Liability | 11 | 318,912 | 262,864 | |
Current Tax Liability | 10 | - | 16,358 | |
Total current liabilities | ||||
4,998,953 | 3,572,149 | |||
Total liabilities | ||||
7,582,050 | 6,155,246 | |||
Total Equities and Liabilities | 4,343,595 | 4,310,084 | ||
Approved by the Directors on 25th October 2023 and signed on its behalf by:
Otunba Adekunle Ojora OFR, CON, FNIM, JP | Mr Chuwueke Onyekachi Caleb FCA | |
Chairman | Director/CFO | |
FRC/2013/IODN/00000002581 | FRC/2015/ICAN/000000/13361 |
NCR (NIGERIA) PLC
UNAUDITED CONDENSED STATEMENT OF CHANGES IN EQUITY
AS AT 30 SEPTEMBER 2023
Equity attributable to equity holders of the Company
Share Capital | Retained | Other | Total Equity | ||
Earnings | Reserves | ||||
N'000 | N'000 | N'000 | N'000 | ||
Balance at 1 January 2023 | 54,000 | (1,812,902) | (86,260) | (1,845,162) | |
Total comprehensive income for the period | - | (1,393,293) | (1,393,293) | ||
Issue | of | ||||
Dividends | |||||
Transfer | for | ||||
Balance at 30 SEPTEMBER 2023 | - | - | - | ||
54,000 | (3,206,195) | (86,260) | (3,238,455) | ||
Share Capital | Retained | Other | Total Equity | ||
Earnings | Reserves | ||||
N'000 | N'000 | N'000 | N'000 | ||
Balance at 1 January 2022 | 54,000 | (802,377) | (90,477) | (838,854) | |
- | |||||
Loss for the year | (1,010,525) | (1,010,525) | |||
Other comprehensive loss for the year, net of tax | - | 4,217 | 4,217 | ||
Total comprehensive loss for the year, net of tax | (1,010,525) | 4,217 | (1,006,308) | ||
- | - | - | |||
Balance at 31 December 2022 | 54,000 | (1,812,902) | (86,260) | (1,845,162) |
NCR (NIGERIA) PLC
UNAUDITED STATEMENT OF CASH FLOW
AS AT 30 SEPTEMBER 2023
2023 | 2022 | |
N'000 | N'000 | |
Cash Flows From Operating Activities | ||
Profit /(Loss) before tax | (1,393,293) | (801,907) |
Adjustments: | ||
Depreciation | 9,798 | 18,066 |
Exchange Loss/(gain) | 896,219 | 980,122 |
Interest income(gain) | (13,052) | (2,077) |
Loss on assets disposal | - | 3,696 |
Allowance and impairment loss | - | (66,505) |
Operating Profit Before working capital changes | (500,328) | 131,395 |
Working Capital Changes: | ||
Changes in prepayment | 289,189 | (319,449) |
Changes in inventory | 118,772 | 50,263 |
Changes in trade and other receivables | 590,192 | (1,380,804) |
Changes in trade and other payables | 1,387,114 | 237,956 |
changes in contract liabilities | 56,048 | 18,673 |
Changes in provision | (13,477) | |
1,940,987 | (1,275,443) | |
Tax paid | (16,358) | (216,920) |
Net Cash Flows from Operating Activities | ||
1,924,629 | (1,492,363) | |
Cash Flows from Investing Activities | ||
Acquisition of PPE | (20,932) | (3,176) |
Interest income | 13,052 | 2,077 |
Rental income | - | - |
Net Cash flows from Investing activities | (7,879) | (1,099) |
Cash Flows from Financing activities: | ||
Interest expenses | - | |
Net Cash flows from Financing activities | - | - |
Net Cash flows for the period | ||
1,916,749 | (1,493,462) | |
Cash and Cash equivalents as at 1 January 2023 | 227,233 | 2,700,818 |
Effects of exchange differences | (896,219) | (980,122) |
Cash and Cash equivalents as at end of period | ||
1,247,764 | 227,233 | |
NCR (NIGERIA) PLC
PERIOD ENDED 30 SEPTEMBER 2023
Summary of significant policies
1.1 Revenue from contracts with customers
The Company is in the business of providing technology and services that help businesses connect, interact and transact with their customers. It provides innovative products which include, ATM (Automated Teller Machines), Retail Point of Sales terminals, Self Service Kiosks, Self-check-in/out systems and sale of computer consumables. These contracts are divided into three revenue streams namely:
- Financial Service Group - Revenue is derived from sale of equipment and other hardware devices such as ATMs
- World Customer Services- Revenue is derived from provision of hardware and software maintenance services.
Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The Group has generally concluded that it is the principal in its revenue arrangements because it typically controls the goods or services before transferring them to the customer.
The Company has applied IFRS 15 practical expedient to a portfolio of contracts (or performance obligations) with similar characteristics since the Company reasonably expect that the accounting result will not be materially different from the result of applying the standard to the individual contracts. The Company has been able to take a reasonable approach to determine the portfolios that would be representative of its types of customers and business lines. This has been used to categorised the different revenue stream detailed below.
Sale of equipment and other hardware devices
Revenue from sale of equipment and other hardware devices are recognised at the point in time when control of the asset is transferred to the customer, generally on delivery of the equipment/devices. The normal credit term is 30 to 90 days upon delivery.
The Company considers whether there are other promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be allocated (e.g., warranties). In determining the transaction price for the sale of hardware, the Company considers the effects of variable consideration, the existence of significant financing components, noncash consideration, and consideration payable to the customer (if any).
1.2 Cost of sales
The cost of sales include purchase cost of merchandise and directly attributable overheads.
1.3 Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Area Controllers.
1.4 Dividend income from investment
Dividend income from investment is recognised when the shareholder's right to receive payment has been established (provided that it is probable that economic benefits will flow to the company and the amount of income can be measured reliably).
1.5 Foreign currencies
The financial statements of NCR Nigeria Plc are presented in Naira, which is the company's functional currency. In preparing the financial statements, transactions in currencies other than the company's functional currency (foreign currencies) are recorded at the rates of exchange prevailing on the dates of the transactions.
foreign currencies are translated at the rates prevailing at the date when the fair value was determined. Any resulting exchange differences are included in the statement of profit or loss and other comprehensive income, except for differences on available-for-salenon-monetary financial assets, which are included in the available-for-sale reserve in other comprehensive income.
Non-monetary items measured in terms of historical cost that are denominated in foreign currencies are translated using the exchange rate at the date of the transaction.
Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.
1.6 Taxation
The tax expense represents the sum of the tax currently payable.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the statement of profit or loss and other comprehensive income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting date.
Deferred tax
Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
date. Deferred tax is charged or credited in profit or loss, except when it relates to items charged or credited in other comprehensive income, in which case the deferred tax is also dealt with in other comprehensive income.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.
1.7 Earnings per share
Earnings per share are calculated by dividing loss/profit for the year by the number of ordinary shares outstanding during the period. Diluted earnings per share are calculated by dividing profit for the year by the fully-diluted number of ordinary shares outstanding during the period.
1.8 Property plant and equipment
Items of property, plant and equipment are stated at cost less accumulated depreciation and any impairment losses.
Properties in the course of construction for production, supply or administrative purposes, or for purposes not yet determined, are carried at cost, less any recognized impairment loss. Cost includes professional fees and, for qualifying assets, borrowing costs capitalized in accordance with the company's accounting policy. Depreciation is not charged on these assets until the assets are available for their intended use.
Depreciation is charged to profit or loss using the straight-line method so as to write off the cost to their residual values over their estimated useful lives on the following bases:
Class of assets | Estimated useful lives(years) |
Furniture and fittings | 5 |
Computers | 4 |
Plant Machinery and equipment | 5 |
Land is not depreciated. The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amounts.
The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss.
Expenses on repairs and maintenance for instance day to day service cost and ongoing maintenance cost are recognized in profit or loss immediately. Major repairs and overhaul costs are capitalized if it will result in future economic benefits.
1.9 Inventories
Inventory is stated at the lower of cost and net realizable value using the First-In-First-Out (FIFO) Method. Net realizable value represents the estimated selling price for inventories less estimated cost to make the sale. Write down of inventory risk is undertaken to an appropriate and adequate extent.
1.10 Trade and other receivables
Trade receivables are carried at amortised cost less allowance for impairment losses.
Invoices are due for payment as soon as they are raised except when customers are pre-billed or allowed an extended credit period. No interest is charged on the overdue receivables. The company has recognised a provision for expected credit loss of 100% against all receivables over 360 days because historical experience has been that receivables that are past due beyond 360 days are not likely to be recoverable. When trade receivable, or the oldest portion of an installment or sales receivable, has been due for 450 days (15 months); it is assumed to be uncollectible and the entire receivable is written off.
Before accepting any new customer, the Company uses an internal credit scoring system to assess the potential customer's credit quality and defines credit limits by customer. Credit limits are reviewed periodically by the Financial Controller.
Provision for expected credit losses
Provisions are made for credit losses on all receivables in order to reduce the Company's financial exposure to any losses on bad debts. There are no trade receivables which are past due at the reporting date against which an allowance has not been made. Allowance for credit losses are reversed if all amounts are recovered. The impairment recognized represents the difference between the carrying amount of these trade receivables and the amounts that are deemed recoverable by the Company. The company does not hold any collateral or other credit enhancements over these balances nor does it have a legal right of offset against any amounts owed by the Company to the counterparty.
In determining the recoverability of a trade receivable, the Company considers any change in the credit quality of the trade receivable from the date credit was initially granted up to the reporting date.
NCR Nigeria Plc
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS For the period ended 30 September 2023
-
Legal Form
NCR (Nigeria) Plc is incorporated in Nigeria under the companies and Allied Matters Act CAP C20 Laws of the federation of Nigeria, 2004 as a public Limited Liability company , and is domiciled in Nigeria. - Principal Activities
NCR (Nigeria) Plc provides technology and services that help business connect, interact and transact with their customers. The company is a technology company that provides innovative products and services to help business build stronger relationships with their customers, through our presence at customer interaction points such as Automated Teller Machines (ATM), Interactive Teller Machine (ITM), Retail Point of Sales (POS), Workstations, Self Service Kiosk, Self check-in/out systems and DVD Kiosks. - Compliance with applicable Law and IFRS
The condensed financial statements have been prepared in accordance with International Accounting Standards 34 (IAS34) and do not include all of the information required for full annual financial statements.
These are the companies IFRS condensed interim financial statements for the period -
--- - Composition of financial statements
The financial statements are drawn up in naira, the functional currency of NCR Nigeria Plc, and in accordance with IFRS accounting presentation. The financial statements comprise: - a condensed statement of financial position;
- a condensed statement or condensed statements of profit or loss and other comprehensive income;
- a condensed statement of changes in equity;
- selected explanatory notes.
NCR Nigeria Plc
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS For the period ended 30 SEPTEMBER 2023
20232022
N'000N'000
3.1.1 Revenue
Financial Service group | 1,520,491 | 691,021 | ||
World Customer Services | 922,950 | 1,048,220 | ||
2,443,441 | 1,739,241 | |||
3.1.2 | Disaggregated revenue information | |||
September 30, 2023 | ||||
Goods or Services | Financial service group | World customer services | Total | |
N'000 | N'000 | N'000 | ||
Sale of equipment | 1,183,519 | 1,183,519 | ||
Sale of software | 143,192 | 143,192 | ||
PS Consulting | 82,358 | 82,358 | ||
Installation/Implementation Services | 111,421 | 111,421 | ||
Maintenance/ Support Services | 922,950 | 922,950 | ||
Total Revenue From Contracts | 1,520,491 | 922,950 | 2,443,441 | |
September 30, 2022 | ||||
Goods or Services | Financial service group | World customer services | Total | |
N'000 | N'000 | N'000 | ||
Sale of equipment | 446,364 | 446,364 | ||
Sale of software | 34,269 | 34,269 | ||
PS Consulting | 92,582 | 92,582 | ||
Installation Services | 35,779 | 35,779 | ||
Implementation services | 82,027 | 82,027 | ||
Maintenance/ Support Services | 1,048,220 | 1,048,220 | ||
Total Revenue From Contracts | 691,021 | 1,048,220 | 1,739,241 | |
2023 | 2022 | |||
3.2 | Cost of Sales | N'000 | N'000 | |
Allowance for slow moving inventories | - | - | ||
Depreciation | 9,798 | 4,180 | ||
Direct Cost | 2,124,085 | 1,307,090 | ||
Salaries and Wages | 748,607 | 518,728 | ||
2,882,490 | 1,829,998 |
NCR Nigeria Plc
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the period ended 30 SEPTEMBER 2023
4 Other Income
30/09/2023 | 30/09/2022 | |
N'000 | N'000 | |
Other Income | - | 116 |
Interest Income | 13,052 | 1,945 |
Provision no longer required | - | - |
Debt Forgiveness | - | - |
13,052 | 2,061 | |
5 Inventories
30/09/2023 | 31/12/2022 | ||
N'000 | N'000 | ||
Finished Equipment | (10,870) | 38,231 | |
Service Parts (Reworkable) | 466,182 | 485,799 | |
Service Parts (Non-Reworkable) | 37,966 | 42,071 | |
493,277 | 566,101 | ||
5a | Allowance for slow moving inventory | ||
Service parts (reworkable) | (215,026) | (167,418) | |
Service parts (non-reworkable) | (24,203) | (25,809) | |
Finished Equipment | - | - | |
(239,229) | (193,227) | ||
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NCR (Nigeria) plc published this content on 27 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 October 2023 16:19:08 UTC.