MED-VIEW AIRLINE PLC UNAUDITED HALF YEAR MANAGEMENT ACCOUNT FOR 2017

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1 UNAUDITED HALF YEAR MANAGEMENT ACCOUNT FOR 2017

2 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE PEROD ENDED JUNE 30, 2017 Jan-June Jan-June Notes Gross Revenue 13,007,374 8,748,732 Operating Cost 7 (9,981,973) (7,682,207) Gross Profit 3,025,401 1,066,525 Other Income 5 47,352 96,891 Exchange Gain 6 22,759 67,731 Administrative expenses 8 (1,978,210) (1,914,316) Finance Costs 9 (171,957) (55,520) Profit/(loss) before tax , ,689 Tax expense 10 (88,000) (67,182) Profit/(loss) for the period 857, ,507 Other Comprehensive Income for the period, - - Total comprehensive income 857, ,507 Earnings Per Share Basic(kobo) Net asset Per Share (kobo)

3 STATEMENT OF FINANCIAL POSITION AS AT 30TH JUNE, 2017 June December ASSETS Notes Property, plant and equipment 11 7,770,061 7,851,847 Investment property , ,500 Intangible Assets 12 1,890,000 1,890,000 Available for sale financial assets 14 32,585 32,585 Security deposit ,852 1,573,593 Deferred tax asset 10 61,541 61,541 Non-current assets 10,876,539 11,680,066 Inventories ,180 15,932 Trade and other receivables 18 3,179,411 3,074,820 Prepayments , ,640 Cash and cash equivalents , ,879 Current Assets 4,297,066 3,753,271 Total Assets 15,173,606 15,433,337 Equity and liabilities Equity Issued share capital 21 4,875,325 4,875,325 Capital reserve - Retained earnings 2,112,914 1,549,152 Fair value reserve Total Equity 6,988,239 6,424,477 Non-current liabilities Borrowing , , , ,434 Current liabilities Trade and other payables 23 7,568,349 7,488,642 Current income tax payable , ,484 Borrowing 24 23, ,300 Current liabilities 7,910,733 8,686,426 Total equity and liabilities 15,173,606 15,433,337 Approved by the Board of directors on April 27, 2017 and signed on its behalf by: Muneer Bankole Chief Executive Officer (FRC/2015/ICEN/ ) Adedayo Olaniyan Executive Director, Finance & Account (FRC/2016/ICAN/ ) 2

4 STATEMENT OF CASHFLOWS FOR THE PERIOD ENDED JUNE June December Profit before tax 945, ,033 Non- cash adjustments: Depreciation charge 128, ,225 Revaluation surplus - 55,500 Prior year adjustments Deferred Tax - Amortization 130,000 Finance Charges 171, ,937 1,245,414 1,408,695 Working capital adjustments Decrease /(Increase) in inventories (172,248) 146,482 Decrease/(Increase) in trade and other receivable (104,591) (247,345) Increase/(Decrease) in Current Prepayments (395,057) (136,640) Increase /(Decrease) in trade and other payables 79,707 3,171,666 Increase/(Decrease) in borrowings (943,400) (710,688) Net cashflow from operating activities (290,176) 3,632,170 Investing activities Purchase of properties, plant and equipment (46,327) (2,419,106) Movements in available for sale financial assets - - Movement in Security Deposits 721,741 (1,191,813) Tax paid during the year - (20,000) 385,238 1,251 Financing activities Increase in share capital - 975,325 Capital Reserve changes (293,583) (309,971) Finance Charges (171,957) (193,937) (Decrease)/Increase in borrowings (47,800) (554,357) Net increase in cash and cash equivalent (128,102) (81,689) Cash and cash equivalent at 1 January 525, ,568 Cash and cash equivalent at 31 December 397, ,879 3

5 STATEMENT OF CHANGES IN EQUITY AS AT JUNE 30, 2017 Issued share capital Retained earnings Capital Reserve Fair value Reserve Total Equity As at 1 January ,900, , ,971 4,969,354 CHANGES IN EQUITY 2016 Increase in Share Capital 665, ,354 Adjustments in retained earnings 16,918 16,918 Transfer to Share Capital 309,971 (309,971) - Total comprehensive income for the period - 772, ,851 As at 31 December, ,875,325 1,549,152-6,424,477 CHANGES IN EQUITY 2017 Increase in Share Capital Total comprehensive income for the period - 857, ,345 Fair value reserve Dividend paid (293,583) -293,583 As at 30, June,2017 4,875,325 2,112, ,988,239 4

6 Notes to the financial statements (continued) 5. OTHER INCOME Jan-June Jan-June Miscellaneous Income 46,203 96,890 Interest Income 1,127 1 Profit on sales of fixed asset 22-47,352 96,891 Miscellaneous income represents income from excess bank charges as well as from third party use of training facility 6. EXCHANGE GAIN AND LOSSES Jan-June Jan-June Exchange Gain 22, OPERATING COST Jan-June Jan-June Aircraft lease - Hajj Operation - - Aircraft lease - Local Operation 1,256,660 - Aircraft Maintenance 235, ,618 Aviation fuel -ATK 4,506,672 2,810,615 Handling charges 425, ,608 Catering 482, ,220 Statutory Charges (NCAA/FAAN/NAMA) 2,108,151 2,191,117 Hotel Accomodation 204, ,971 Insurance and aircraft inspection - - Govt. Agency/ Royalty - NAHCON 82, ,684 Weighing charges 577, ,006 Flight attendants allowance - - Commission - - Depreciation: Aircraft 102, ,368 9,981,973 7,682,207 5

7 Notes to the financial statements (continued) 8. ADMINISTRATIVE EXPENSES Jan-June Jan-June Advertisement 107,492 86,960 Business Development 330, ,576 Fuel( PMS/AGO) 26,011 12,711 Insurance 82,516 1,131 Motor Vehicle expenses 21,995 9,510 Printing & Stationery 9,926 10,441 Office Rent 42,393 51,487 Staff Cost/Medical/Training/Welfare 777, ,895 Transport 25,376 3,604 Telephone /Communication 2,808 2,188 Courier Services & Postages 26,679 24,461 Entertainment 10,874 10,601 Electricity 2,941 1,705 Office Repairs & maintenance - - Depreciation: Charge for the year 27,221 19,493 Amortization of intangible assets - 231,661 Subscription charges 30,480 37,437 Security services 34,969 28,703 Professional fees 64,590 25,573 Bank Charges 45, ,343 Legal fees 1,923 - Consultancy fee 18,460 22,660 Operational expenses 271, ,748 Other repairs and maintenance 16,428 13,341 Bad debts ,978,210 1,914,316 6

8 Notes to the financial statements (continued) 8. AUDITORS' REMUNERATION The analysis of auditors' remuneration is as follows: Fees Payable to the Companys' auditor for the audit of the company's annual account FINANCE COST Jan-June Jan-June Interest on loan 57,321 34,209 Interest on overdraft 114,636 21, ,957 55, TAXATION Current Income Tax Payable The movement on income tax payable account during the year was as follows: Jan-June Jan-June Per income statement Income tax Prior year under provision - - Income tax 72,500 68,638 Education tax 15,500 13,728 Per Statement of financial position - 15,184 88,000 67,182 Balance brought forward 230, ,118 Charged 88,000 82,366 Paid (20,000) Balance carried forward 318, ,484 Deferred tax Balance brought forward (61,541) (46,357) (Write back)/charged - 15,184 (Asset)/liability carried forward (61,541) (61,541) The charge for taxation is based on the provisions of the companies Income Tax Act C21 LFN 2004 as amended to date, Education Tax Act E 4 LFN 2004 and IAS 12. 7

9 11. PROPERTY, PLANT AND EQUIPMENT Cost or valuation LAND & MOTOR COMPUTER PLANT/OFFICE &COMMUNICA TION FURNITURE, FITTING & CAPITAL WORK-IN - BUILDING VEHICLES EQUIPMENT EQUIPMENT PARTITIONING AIRCRAFT PROGRESS TOTAL As at January 1, , ,702 73,138 87,520 74,416 5,711,132 2,281,854 8,648,055 Additions 6, ,019 3,137 20,565-1,248 46,327 Reclassification As at 30 June, , ,703 88,157 90,657 94,981 5,711,132 2,283,102 8,694,382 Depreciation As at January 1, ,706 65,294 41,248 43,333 41, , ,209 Adjustments Charges 256 5, ,929 9, , ,112 Impairment Losses As at 30 June, ,962 70,969 41,248 53,262 50, , ,321 As at 30 June, ,688 77,734 46,909 37,395 44,132 5,019,101 2,283,102 7,770,061 At 31 December, ,587 83,408 31,890 44,187 33,389 5,121,531 2,281,854 7,851, Capital Work-in-progress This represents the amount expended in acquiring a property toward the financial year end and stock of spare parts for the aircrafts Capital commitments Capital expenditure commitments at the year -end authorized by the Board of Directors comprise: Approved and contracted - - Approved but not contracted - - 8

10 Notes to the financial statements (continued) 12. Investment properties June December Balance brought forward 270, ,500 Additions - - As at 30 June 270, ,500 June December 13. INTANGIBLE ASSETS As at January 1,890,000 2,020,000 Additions - - Amortised during the year (65,000) (130,000) As at 30 June 1,890,000 1,890,000 Intangible assets represents the licenses which authorises the company to operate as an airline and also the designations It also includes the Software acquired by the company The intangible assets are made up of the following licences: a. Airline Operating Certificate b.iata Licensed Travel Agent c. IATA Operational Safety audit certificate d.air Transport Licence e. Tour Operators Licence f.air Carriers Permit g. Route Designation Licence h. Vidcom Reservation System Software i. Sage 50 Quantum Accounting Software 14. Investments Available for sale financial assets June December As at January 1 32,585 32,585 As at 30 June 32,585 32,585 9

11 Notes to the financial statements (continued) 15 Security Deposit June December As at January 1 1,573, ,780 During the year (721,741) 1,191,813 Reclassified from Investment - As at 30 June 851,852 1,573, Inventories June December Spare parts for aircraft 188,178 15, ,178 15,932 This refers to the company's consumable spare parts relating to the aircrafts 17 PREPAYMENTS June December 531, , Trade and other receivables June December Trade receivables 1,353,103 1,258,697 Other receivables 743, ,607 Intercompany receivables ,082,872 1,059,516 3,179,411 3,074, These represent balances outstanding in respect of settlements made by the company on behalf related entities and Med -View International Travels and Cargoes Limited Bad and Doubtful Debts Provision: Provision for doubtful debts is made only for debts that are above 365 days and above due While 100% provision is made for debts that are overdue by 91 days and more. Despite making provision for the overdue debts, the company still makes efforts to collect the outstanding debts. Only debts that have been provided for which cannot be collected after exhausting all debts recovery efforts are eventually written off as bad debts. Credit Policy It is the policy of the company to subject sales agents to credit worthiness test. The credit worthiness of each agent is assessed by considering the history of their business transactions. Credit limits are set for each agents based on their volume of transactions. Corporate entities are granted credit after considering their credit worthiness 10

12 Notes to the financial statements (continued) June December 19. Cash & cash equivalents Cash Balances 1,192,108 1,692,885 Bank Balances 599, ,744 1,792,053 2,164,629 Bank Overdrafts (1,394,275) (1,638,750) 397, ,879 June December 20. Cashflow from operating activities Profit before tax 945, ,033 Non- cash adjustments: Depreciation charge 128, ,225 Revaluation surplus - (55,500) Amortization 65, ,000 Fixed assets adjustment - Tax Provision Finance Charges 171, ,937 1,245,414 1,408,695 Working capital adjustments Decrease /(Increase) in inventories (172,248) 146,482 Decrease/(Increase) in trade and other receivable (1,045,278) (247,345) Increase/(Decrease) in Current Prepayments (395,057) (136,640) Increase /(Decrease) in trade and other payables 492,608 3,171,666 Increase/(Decrease) in borrowings (967,300) (710,688) Net cashflow from operating activities (841,862) 3,632, Share Capital Share Capital comprises: June December Authorized: As at January 1 12,000,000,000 ordinary shares of N50k each 6,000,000 6,000,000 8,000,000,000 ordinary shares of 50k each - 12,000,000,000 ordinary shares of N50k each 6,000,000 6,000,000 Issued & Allotted: As at 1 January 4,875,325 3,900,000 Additions - 665,354 Transferred from capital reserve 309,971 As at 30 June 4,875,325 4,875,325 During the year, the company divided the shares into 50k per unit of share, the total shares of the company stand at 12,000,000,000 ordinary share of 50k each. 11

13 Notes to the financial statements (continued) June December 22. NON CURRENT LIABILITIES Long-term borrowings Opening Balance 1,289,734 2,554,781 Addition during the year - 391,013 Less Repayments (991,200) (1,656,060) 298,534 1,289,734 Less: Amount due within one year (23,900) (967,300) Amount due after one year 274, ,434 Finance lease liabilities are secured by the assets leased. The borrowings are a mix of debt with repayment periods not exceeding four years. For variable and fixed interest rate. The weighted average interest rates paid during the year were: % % Bank Overdraft Finance lease

14 23. Trade and other payables June December Notes Trade payables 4,749,111 4,397,027 Other payables & accruals 1,939,575 1,246,353 Intercompany balance , ,645 Directors' current accounts 445,282 1,006,617 7,568,349 7,488, These represent balances outstanding in respect of settlements made on behalf of the company by related entities Med-View Konsult Limited Trade and other payables principally comprise amounts outstanding for trade purchases and on going costs. The average credit period taken purchase is sixty days. The directors consider that the carrying amount of trade payables approximates their fair values. 24. Short-term borrowings Current Portion of long term: June December Note Borrowings 26 23, ,300 23, ,300 Borrowings refer to the current portion loans repayable within the next one year 25.COMMITTMENT AND CONTINGENT LIABILITIES (i) Commitment Financial Commitments The Company did not charge any of its assets to secure liabilities of third parties other than those stated in the note 15.1 of this financial statement. The Directors are of the opinion that all known liabilities and commitments have been taken into account in the preparation of these financial statements. (ii) Contingent Liabilities There are contingent liabilities in respect of legal actions against the company amounting to N43,794,000 (there were no contingent laibilities in the previous year).management has not made provision for this liability as consultations with the Company's external solicitors has indicated that the likely outcome of the legal actions may favour the Company. 26. RECLASSIFICATION OF BALANCES Certain comparative balances have been reclassified to ensure proper disclosure and uniformity with the current year's presentation. 13

MED-VIEW AIRLINE PLC UNAUDITED MANAGEMENT ACCOUNT 30 SEPTEMBER, 2017

MED-VIEW AIRLINE PLC UNAUDITED MANAGEMENT ACCOUNT 30 SEPTEMBER, 2017 UNAUDITED MANAGEMENT ACCOUNT 30 SEPTEMBER, 2017 STATEMENT OF FINANCIAL POSITION AS AT THE PERIOD ENDED SEPTEMBER 30, 2017 Jan- Sept Jan-Dec ASSETS Notes Property, plant and equipment 9 7,877,733 7,851,847