Vancouver, British Columbia–(Newsfile Corp. – October 29, 2020) – Raffles Financial Group Limited (CSE: RICH) (FSE: 4VO) (OTC: RAFFF) (“Raffles” or “the Company”) today announces its financial results for the fiscal year ended June 30, 2020, highlighted by revenue of $8,866,672 and adjusted comprehensive income before other items and income tax expenses of $12,220,573. All amounts expressed are in Singapore dollars.
2020 Financial Highlights:
Comparative Summary of Key Financial Metrics for 2019 and 2020
|Unrealized gain on investments||$4,748,139||–|
|Listing expenses for RTO2||$6,052,280||–|
|Adjusted comprehensive income before other items
and income tax expenses3
|Net Income (Loss)||($425,229)||$9,560,301|
1 Operating expenses do not include interest, taxes, depreciation (including impairment of intangible assets) and amortization, and other non-recurring Items and non-cash accounting expenses.
2 Listing expense relates to the RTO in the amount of $6,052,280, which comprised of a non-cash acquisition consideration of $5,479,920 recognised under IFRS 3 in accounting for the reverse take over transaction (“RTO”).
3 Adjusted comprehensive income before other items and income tax expenses equals income before other items and income tax expenses plus other comprehensive income includes Foreign currency translation and unrealized gain on investments.
Review of 2020
The Company’s sole operating subsidiary, Raffles Financial Private Limited (“RFP”), first appeared in the second quarter of the calendar year 2020, marking the beginning of the Company tapping into the corporate finance advisory segment exclusively. From a financial standpoint, the Company was able to exceed its revenue and earning objectives for the year. From an operational standpoint, the Company disposed its old business and continued to make inroads into the Asia financial market through its services provided by RFP. The highly customisable service provided to its small to medium clients, coupled with its unique professional and low-cost service, are value-propositions that continue to resonate with and account for its adoption rate among industry players.
Outlook for 2021
Fiscal 2020 Financial Results Summary
The Company generated revenues of $8,866,672, which was derived from two major service segments, namely financial advisory service and licensing service (compared to $11,533,334 in fiscal 2019). The difference in revenue between fiscal 2019 and fiscal 2020 can be attributed to:
Administrative expenses for fiscal 2020 amounted to $1,565,443, compared to $782,682 in 2019. The difference between fiscal 2019 and fiscal 2020 was mainly due to:
The comprehensive income for the year was $4,494,115 compared to $9,560,301 in 2019.
Excluding the listing expense related to the RTO in the amount of $6,052,280 (it comprised of a non-cash consideration of $5,479,920 recognised under IFRS 3 in accounting for the RTO), the Company made a comprehensive income of $10,546,395 in 2020 (comprising of operating profits of $5,627,051 and other comprehensive Income of $4,919,344). In 2019, the Company had a comprehensive income of $9,560,301.
Full details of the Company’s 2020 financial results can be found in the Audited Consolidated Financial Statements and Management’s Discussion and Analysis (MD&A) for the years ended June 30, 2020, which are available at www.sedar.com.
About Raffles Financial Group Limited (CSE: RICH) (FSE: 4VO) (OTC: RAFFF)
Raffles Financial Pte. Ltd. (a wholly-owned subsidiary of Raffles Financial Group Limited) is an exempt corporate finance advisory firm, registered with the Monetary Authority of Singapore, which provides public listing advisory and arrangement services. Raffles Financial serves as advisor for family trusts, family offices and investment funds. Please visit www.rafflesfinancial.co for more information.
For more information, please contact:
Cathy Hume, Investor Relations
Phone: 416-868-1079 x 231
Email: [email protected]
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release. Certain statements contained in this release may constitute “forward-looking statements” or “forward-looking information” (collectively “forward-looking information”) as those terms are used in Canadian securities laws. These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated”, “anticipates” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company’s current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this release contains forward-looking information relating to the business of the Company, the anticipated partnerships with financial institutions worldwide and the growth potential through Province Representatives. The forward-looking information contained in this release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.