MED-VIEW AIRLINE PLC UNAUDITED 1ST QUARTER MANAGEMENT ACCOUNT FOR 2018

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1 UNAUDITED 1ST QUARTER MANAGEMENT ACCOUNT FOR 2018

2 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE PEROD ENDED MARCH 31, 2018 Jan-Mar Jan-Mar Notes Gross Revenue 4 3,569,853 7,610,202 Operating Cost 7 (2,480,069) (5,974,978) Gross Profit 1,089,785 1,635,224 Other Income 5 37,620 2,160 Exchange Gain/Loss 6 (18,311) 24,684 Administrative expenses 8 (815,010) (866,757) Finance Costs 9 (29,346) (50,072) Profit/(loss) before tax 264, ,239 Tax expense 10 (54,175) (54,210) Profit/(loss) for the period 210, ,029 Other Comprehensive Income for the period, Total comprehensive income 210, ,029 Earnings Per Share Basic(kobo) Net asset Per Share (kobo)

3 STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH, 2018 Jan - Mar Jan - Dec ASSETS Notes Property, plant and equipment 11 8,637,516 8,713,768 Investment property , ,500 Intangible Assets 12 1,733,857 1,766,357 Available for sale financial assets Security deposit 15 2,214,947 1,576,292 Deferred tax asset Non-current assets 12,856,820 12,326,917 Inventories ,879 81,010 Trade and other receivables 18 3,857,783 3,849,549 Prepayments , ,536 Cash and cash equivalents ,783 2,928,126 Current Assets 5,426,199 7,271,221 Total Assets 18,283,020 19,598,138 Equity and liabilities Equity Issued share capital 21 4,875,325 4,875,325 Capital reserve - Retained earnings 2,721,187 2,510,624 Fair value reserve Total Equity 7,596,512 7,385,949 Non-current liabilities Deferred tax asset 10 70,580 70,580 Borrowing 22 1,185, ,416 1,255, ,996 Current liabilities Trade and other payables 23 8,855,199 10,560,024 Current income tax payable , ,148 Borrowing , ,021 Current liabilities 9,430,910 11,319,193 Total equity and liabilities 18,283,020 19,598,138 Approved by the Board of directors on April 30, 2018 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 MARCH Jan - Mar Jan - Dec Profit before tax 264,738 1,506,189 Non- cash adjustments: Depreciation charge 82, ,367 Revaluation surplus 0 Adjustments (416) (6,360) Deferred Tax 0 Amortization 32, ,000 Finance Charges 29, , ,101 2,252,297 Working capital adjustments Decrease /(Increase) in inventories (158,869) - 65,078 Decrease/(Increase) in trade and other receivable (8,234) (774,730) Increase/(Decrease) in Current Prepayments 65,782 (275,896) Increase /(Decrease) in trade and other payables (1,704,825) 3,071,382 Increase/(Decrease) in borrowings (237,633) (515,279) Net cashflow from operating activities (1,634,678) 3,692,696 Investing activities Purchase of properties, plant and equipment (6,265) (1,257,285) Movements in available for sale financial assets - 32,585 Movement in Security Deposits (638,654) (2,699) Tax paid during the year - (43,412) (2,279,598) 2,421,885 Financing activities Increase in share capital - - Capital Reserve changes - - Dividend Paid (292,519) Finance Charges (29,346) (227,101) (Decrease)/Increase in borrowings 362, ,982 Net increase in cash and cash equivalent (1,946,342) 2,402,247 Cash and cash equivalent at 1 January 2,928, ,879 Cash and cash equivalent at 31 December 981,784 2,928,126 3

5 STATEMENT OF CHANGES IN EQUITY AS AT MARCH 31, 2018 Issued share capital Retained earnings Capital Reserve Fair value Reserve Total Equity As at 1 January ,875,325 1,549,152-6,424,477 CHANGES IN EQUITY 2017 Increase in Share Capital Dividend paid (292,519) (292,519) Transfer to Share Capital Total comprehensive income for the period - 1,253,991 1,253,991 As at 31 December, ,875,325 2,510,624-7,385,949 CHANGES IN EQUITY 2018 Increase in Share Capital Total comprehensive income for the period - 210, ,563 Fair value reserve Dividend paid - 0 As at 31, March, ,875,325 2,721, ,596,512 4

6 NOTES TO THE ACCOUNT 4 Description E- Ticktet Sales :Domestics 1,322,995 E - Ticket Sales: Int'l 39,015 E-Ticket Sales :Regional 66,314 Excess Luggage - Domestics 6,931 West Coast Cargo Uplift 1,593 Web On-line Ticket(Interswitch 264,146 Web On-line Ticket(Agents) 322,045 Web On-Line-(IBOH) 129,228 MIGS:M-card Internt Gateway Se 567,986 BSP-IATA 348,114 Hahn Air REVENUE 173,362 BSP - IATA London 25,415 Web on line-(gtb PAY) 125,879 BSP - IATA GHANA 37,764 MIGS : FCMB 92,622 ACCESS RAVE INCOME 3,666 OTHER INCOME-CHARTERED 42,777 Gross Revenue 3,569,853 5

7 NOTES TO THE FINANCIAL STATEMENT CONT'D 5. OTHER INCOME Jan-Mar Jan-Mar Miscellaneous Income 37,618 1,850 Interest Income Profit on sales of fixed asset 37,620 2,160 Miscellaneous income represents income from excess bank charges as well as from third party use of training facility 6. EXCHANGE GAIN AND LOSSES Jan-Mar Jan-Mar Exchange Gain/Loss (18,310.96) 24, OPERATING COST Jan-Mar Jan-Mar Aircraft lease - Hajj Operation Aircraft lease - Local Operation 115,773 1,374,608 Aircraft Maintenance 63, ,536 Aviation fuel -ATK 844,219 2,639,651 Handling charges 252, ,667 Catering 151, ,703 Statutory Charges (NCAA/FAAN/NAMA) 552, ,091 Hotel Accomodation 81, ,635 Insurance and aircraft inspection 81,065 38,710 Govt. Agency/ Royalty - NAHCON - 13,558 Passenger Duty and Navigational Charges 229,031 - Flight attendants allowance 19,130 49,526 Commission/Software Usage 24, ,087 Depreciation: Aircraft 64,536 51,206 2,480,069 5,974,978 6

8 Notes to the financial statements (continued) 8. ADMINISTRATIVE EXPENSES Jan-Mar Jan-Mar Advertisement 5,139 69,723 Business Development 6, ,704 Fuel( PMS/AGO) 12,044 9,786 Insurance ,316 Motor Vehicle expenses 3,907 7,897 Printing & Stationery 4,860 3,233 Office Rent 35,664 10,345 Staff Cost/Medical/Training/Welfare 369, ,753 Transport 10,612 8,437 Telephone /Communication 24, Courier Services & Postages 10,261 11,436 Entertainment 6,648 5,404 Electricity 1, Office Repairs & maintenance 10, Depreciation: Charge for the year 18,397 13,748 Amortization of intangible assets 32,500 - Subscription charges 131,309 16,631 Security services 43,826 16,248 Professional fees ,360 Bank Charges 15,371 14,249 Legal fees & Consultancy fees 8,206 5,120 Operational expenses 25, Other repairs and maintenance 37,885 6,307 Bad debts , ,757 7

9 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 - Mar Jan - Dec Interest on loan 17,395 47,103 Interest on overdraft 11,951 2,969 29,346 50, TAXATION Current Income Tax Payable The movement on income tax payable account during the year was as follows: Jan - Mar Jan - Dec Per income statement Income tax Prior year under provision - Income tax 45,146 45,273 Education tax 9,029 8,937 54,175 54,210 Per Statement of financial position Jan - Mar Jan - Dec Balance brought forward 307, ,484 Charged 54, ,076 Paid - (43,412) Balance carried forward 361, ,148 Deferred tax Balance brought forward 70,580 (61,541) (Write back)/charged 132,121 (Asset)/liability carried forward 70,580 70,580 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. 8

10 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, , ,703 95,868 58, ,641 7,309,520 1,777,049 9,905,346 Additions ,500 6,265 Reclassification As at 31 March, , ,703 95,953 58, ,321 7,309,520 1,782,549 9,911,609 Depreciation As at January 1, ,458 86,147 52,620 34,355 76, ,991-1,191,578 Adjustments Charges 1,702 5,213 3,360 1,574 6,548 64,536-82,932 Impairment Losses As at 31 March, ,161 91,360 55,980 35,928 82, ,527-1,274,094 As at 31 March, ,014 57,344 39,973 22,459 78,183 6,324,993 1,782,549 8,637,516 As at January 1, ,717 62,557 43,248 24,032 83,634 6,389,529 1,777,049 8,713, 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 - - 9

11 Notes to the financial statements (continued) 12. Investment properties Jan - Mar Jan - Dec Balance brought forward 270, ,500 Additions - - As at 31 March 270, ,500 Jan - Mar Jan - Dec 13. INTANGIBLE ASSETS As at January 1,766,357 1,890,000 Additions - 6, Amortised during the year (32,500) (130,000) As at 31 March 1,733,857 1,766,357 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 Jan - Mar Jan - Dec As at January ,585 Write off on investment (32,585) As at 31 March

12 Notes to the financial statements (continued) 15 Security Deposit Jan - Mar Jan - Dec As at January 1 1,576,292 1,573,593 During the year 638,655 2,699 Reclassified from Investment - As at 31 March 2,214,947 1,576, Inventories Jan - Mar Jan - Dec Spare parts for aircraft 81,010 81,010 Stock of engineering parts 158, ,879 81,010 This refers to the company's consumable spare parts relating to the aircrafts 17 PREPAYMENTS Jan - Mar Jan - Dec As at Jan 1 412, ,640 Movement during the year (65,782) 275, , , Trade and other receivables Jan - Mar Jan - Dec Trade receivables 1,985,123 2,473,156 Other receivables 686, ,971 Intercompany receivables ,186, ,422 3,857,783 3,849, 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 history of their business transactions. Credit limits are set for each agents based on their volume of transactions. Corporate entities are grante after considering their credit worthiness 11

13 Notes to the financial statements (continued) Jan - Mar Jan - Dec 19. Cash & cash equivalents Cash Balances 1,694, ,460 Cash in Transit 9,178 1,252,345 Bank Balances 546,940 1,100,484 2,250,702 3,171,289 Bank Overdrafts (1,268,919) (243,163) 981,783 2,928,126 Jan - Mar Jan - Dec 20. Cashflow from operating activities Profit before tax 264,738 1,506,189 Non- cash adjustments: Depreciation charge 82, ,367 Revaluation surplus - Amortization 32, ,000 Fixed assets adjustment - Adjustment (416) (6,360) Tax Provision - Finance Charges 29, , ,100 2,252,297 Working capital adjustments Decrease /(Increase) in inventories (158,869) (65,078) Decrease/(Increase) in trade and other receivable (8,234) (774,730) Increase/(Decrease) in Current Prepayments 65,782 (275,896) Increase /(Decrease) in trade and other payables (1,704,825.0) 3,071,382 Increase/(Decrease) in borrowings (237,633) (515,279) Net cashflow from operating activities (1,634,679) 3,692, Share Capital Share Capital comprises: Authorized: Jan - Mar Jan - Dec 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 31 March 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. 12

14 Notes to the financial statements (continued) Jan - Mar Jan - Dec 22. NON CURRENT LIABILITIES Long-term borrowings Opening Balance 1,274,437 1,289,734 Addition during the year 1,695,801 1,000,000 Less Repayments (1,570,831) (1,015,297) 1,399,407 1,274,437 Less: Amount due within one year (214,388) (452,021) Amount due after one year 1,185, ,416 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. 13

15 23. Trade and other payables Jan - Mar Jan - Dec Notes Trade payables 5,308,158 6,912,048 Other payables & accruals 2,748,680 2,912,886 Intercompany balance ,129 Directors' current accounts 798, ,961 8,855,199 10,560, 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: Jan - Mar Jan - Dec Note Borrowings , , , ,021 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. 14

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

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