Interim report July-September 2019 , Numisbing AB
The interim report comprises the period 2019-07-01—2019-09-30.
About Numisbing
Numisbing has been active in the numismatic market since 2012.Numisbing is a leading numismatics business in the Middle East Region with a market share close to 75%. Numisbing is seeking admission to Nasdaq First North to raise the Company's public profile. Currently, there are few quoted companies specializing in the niche business of trading and investing in rare and antique coins or other rare collectibles. Investment interest in such coins has increased over recent years, and stock market investors are seeking more diverse investment portfolios.
Numisbing has its parent company in Stockholm, Sweden, while the operating subsidiary operates in Dubai, UAE. The company owns shares in a “collectible fund” located on the Cayman Islands. Numsibing intends to be listed on Nasdaq First North, Stockholm before the end of the year.
The period July 1 – September 30, 2019 in brief (FY18):
- Net sales amounted to SEK 1.70 million (SEK 6.57 million)
- Sales increased to SEK 5.27 million (SEK 35.3 million)
- Operating profit in the third quarter was SEK 2.10 million (SEK 4.29 million).
- Earnings per share in the third quarter amounted to SEK 0.03 (0.12) based on the weighted average of shares during the period.
The period January 1 – September 30, 2019 in brief (FY18):
Due to a new organizational structure the figures for comparison, within the parentheses, comprises of the whole financial year of 2018.
- Net sales amounted to SEK 5.81 million (SEK 6.57 million)
- Sales increased to SEK 18.4 million (SEK 35.3 million)
- Operating profit in the second quarter was SEK 5.14 million (SEK 4.29 million).
- Earnings per share in the second quarter amounted to SEK 0.27 (0.12) based on the weighted average of shares during the period.
- Cash flow from operating activities amounted to SEK1.88 million (0.55 million).
- Bank balances amounted to SEK0.71 million (0.48 million) at the end of the period throughout the Group.
Significant events during the third quarter of 2019
The targeted and preferential rights issue that began in Q2 was completed in July with a net contribution to the cash register of SEK 19.6 million. 3,627,950 new shares were subscribed, and the company had 36 112 210 shares before the issue. When the issue is registered with the Swedish Companies Registration Office, the company holds 39,740,160 shares.
- The active customer base increased by 7% during the third quarter to 792.
- The market position in the Middle East continues to be strengthened with a number of customers. Today, the company has about 75% of the market in the immediate area.
- We received a decision on financing in the form of share purchases over a four-year period from the listing date from GEM of SEK 150 million for market development in primarily Europe.
- The company has changed address to Birger Jarlsgatan 57 B, in Stockholm
Summary of the most important events during the third quarter of 2019.
The company's sales during Q3 were SEK 5.27 million (SEK 11.55 Million), which is 60% lower than the corresponding quarter last year. The decrease is due to one off special consignment worth SEK 6.75 Million received in Q3 2018, which gave a very nominal profit of SEK 205K. Excluding the one off deal we had an increase of 10% compared to Q3 2018.
Continued strong influx of new customers. Numisbing's strong customer growth during Q3 gives the company a broader customer base, especially in Europe and Asia. After the third quarter of 2019, the company has 792 active customers compared to 740 customers after the second quarter. We see continued strong development in which our customers invest in more objects
Important events after the end of the third quarter of 2019
- The company held an Extraordinary General Meeting on October 23 to elect CEO Lars Wolf as an ordinary member of the company's Board of Directors.
On our website https://Numisbing.se we provide continuous updates on what is happening in the company.
CEO Comments
Dear shareholders,
Both the second and third quarters of 2019 have been characterized by good sales and thus also profits. The period compared to up to Q3 2018, the sales is less, due to more concentration on higher margins deals, than just volume. The effect can be seen very clearly in the increase in profitability even though there is a less turnover compared to last year. We expect even better performance performance in Q4. Due to new marketing strategy the response from new collectors who have arrived is very positive.
In the collectibles fund Numisbing has invested USD 2.40 Million until Sep 2019. We also serves as an investment advisor and has been developed as expected during the period. Last year, the fund showed strong growth of 28 percent and this year the fund has developed at the same rate and had an 21 percent growth until the end of September in 2019. The fund consists of three different segments A, B and C and has had approximately equal good development in all three segments.
The company has expanded a team of professional numismatics specializing in Arabic and Indian segment of banknotes, coins and stamps.
Half of the company's customers come from the Middle East region and 20 percent of the customers are from India. The remaining 30 percent of customers are scattered around the world.
Well positioned for the future
Great efforts have been made by the management of the company as well as consultants during the quarters to prepare the company for a listing on the Swedish marketplace. Today, the company has a strong and well-reputed board of directors in the Swedish parent company.
We thank you for your confidence and continue our work for growth in 2019 and onwards.
Stockholm November 11, 2019
Lars Wolf
CEO
Key performance indicators
| 2019-07-01 | 2019-01-01 | 2018-01-01 | 2017-01-01 | |
| KEY RATIOS | 2019-09-30 | 2019-09-30 | 2018-12-31 | 2017-12-31 |
| All amounts in kSEK | ||||
| Result | ||||
| Revenue | 5 270 | 18 416 | 35 322 | 18 773 |
| Operating result | 2 098 | 5 136 | 4 287 | 3 413 |
| EBITDA | 2 104 | 5 158 | 4 331 | 3 468 |
| Profit (Loss) before tax | 2 055 | 5 019 | 4 121 | 3 305 |
| Net Profit (Loss) | 2 055 | 5 019 | 4 121 | 3 305 |
| Margins | ||||
| Operating margin, %, EBITDA | 39,8% | 27,9% | 12,1% | 18,2% |
| Operating margin, %, EBIT | 39,9% | 28,0% | 12,3% | 18,5% |
| Profit margin, % | 39,0% | 27,3% | 11,7% | 17,6% |
| Profitability | ||||
| Return on capital employed, % | 5,7% | 13,9% | 35,1% | 42,2% |
| Return on equity, % | 5,7% | 14,0% | 37,7% | 45,4% |
| Financial position | ||||
| Total assets | 43 343 | 43 343 | 14 906 | 9 545 |
| Equity | 35 914 | 35 914 | 10 939 | 7 281 |
| Interest-bearing debt | 1 152 | 1 152 | 1 286 | 815 |
| Capital employed | 37 066 | 37 066 | 12 225 | 8 096 |
| Equity ratio, % | 82,9% | 82,9% | 73,4% | 76,3% |
The Business
Numisbing AB (publ) is the legal parent company in the group. Numisbing Limited is the operating company in the group and registered with the Ras Al Khaimah International Corporate Centre (RAKICC), United Arab Emirates, as an Offshore Company under registration number ICC 20172004 on December 7, 2017.
The principal activity of the Company is trade, invest and auction of numismatic, philatelic, other collectibles and other valuable arts and antiquities, trade in support products, including but not limited to supplies and publications, providing grading services by own or through third party, providing consultancy services in the related field and conducting and supporting related exhibition and events.
Statement of compliance
These interim condensed consolidated financial statements have been prepared in accordance with and comply with IAS34,'InterimFinancial Reporting' of International Financial Reporting Standards (IFRSs),issued by the International Accounting Standards Board (IASB), except for the comparative information required by IAS 34 and the requirements of UAE Federal Law No. 2 of 2015.
In March 2019 Numisbing AB (publ) acquired the operating company Numisbing Limited and its subsidiaries. The purchase price was 35 612 210 SEK and was funded with new issues of shares in Numisbing AB (publ). According IFRS 3, “Business Combinations” the acquisition has been identified as a reversed acquisition. Numisbing Group’s consolidated financial statements are issued under the legal parent, Numisbing AB (publ) (legal acquire) but described in the financial reports and notes as a continuation of the financial statements of the legal subsidiary, Numisbing Limited (accounting acquire).
Other information
Audit
This report has not been subject to review by Moore Stephens KLN AB.
Contact information
Ludvig Kollberg
Authorised Public Accountant and Partner
Ludvig.Kollberg@moorestephens.se
T +46 (0)31 739 13 00
D +46 (0)761 34 63 73
F +46 (0)31 739 13 01
Financial calendar
| Annual report 2019 | February 18 2020 |
Assurance
The Board of Directors and CEO hereby confirm that this Interim Report January – June 2019 provides a true and fair overview of the performance of the Parent Company’s and the Group’s operations, financial position and earnings, and that it describes the significant risks and factors of uncertainty to which the Parent Company and the companies included in the Group are exposed.
Stockholm 11 of October 2019
| Ramkumar Sarangapani | Agneta Berliner |
| Chairman of the Board | Member of the Board |
| Anthony Godinho | Lars Wolf |
| Member of the Board | CEO/Member of the Board |
Group –Condensed consolidated statement of income and other comprehensive income
| 2019-07-01 | 2019-01-01 | 2018-01-01 | 2017-01-01 | ||
| All amounts in kSEK | Note | 2019-09-30 | 2019-09-30 | 2018-12-31 | 2017-12-31 |
| Revenue | 4 | 5 270 | 18 416 | 35 322 | 18 773 |
| Other income | 82 | 379 | 222 | 90 | |
| Total income | 5 352 | 18 794 | 35 543 | 18 863 | |
| Operating expenses | |||||
| Direct expenses | -3 650 | -12 987 | -28 978 | -16 398 | |
| Other external expenses | -110 | -1 487 | -928 | -712 | |
| Employee benefits | -444 | -1 487 | -1 587 | -487 | |
| Depreciation and Impairment Tangible assets | -3 | -9 | -22 | -33 | |
| Amortization and Impairment Intangible assets | -2 | -13 | -22 | -22 | |
| Fair value changes on investment in numismatic assets | 988 | 2 357 | 281 | 2 203 | |
| Other operating expenses | -32 | -32 | – | – | |
| Total operating expenses | -3 254 | -13 658 | -31 256 | -15 450 | |
| Operating profit / loss | 2 098 | 5 136 | 4 287 | 3 413 | |
| Financial income | – | – | – | – | |
| Financial expenses | -44 | -118 | -166 | -108 | |
| Result from financial items | -44 | -118 | -166 | -108 | |
| Profit/Loss before tax | 2 055 | 5 019 | 4 121 | 3 305 | |
| Income tax | – | – | – | – | |
| Profit / Loss for the year | 2 055 | 5 019 | 4 121 | 3 305 | |
| Consolidated statement of comprehensive income | Note | ||||
| Profit/Loss for the year | 2 055 | 5 019 | 4 121 | 3 305 | |
| Other comprehensive income | |||||
| Items that may be subsequently reclassified to profit or loss | – | – | |||
| Fair value gain on investment held at amortized cost | 5 | 523 | 724 | – | – |
| Translation differences | -2 145 | -1 717 | 29 | 103 | |
| Total comprehensive income for the year | 433 | 4 025 | 4 151 | 3 408 | |
| Net profit attributable: | |||||
| Parent company shareholders | 2 055 | 5 019 | 4 121 | 3 305 | |
| Non-controlling interests | |||||
| Total comprehensive income attributable to: | |||||
| Parent company shareholders | 433 | 4 025 | 4 151 | 3 408 | |
| Non-controlling interests | |||||
| Earnings per share, before dilution (SEK) | |||||
| Earnings from continuing operations | 0,03 | 0,27 | |||
| Earnings from discontinued operations | – | – | |||
| Earnings per share, after dilution (SEK) | |||||
| Earnings from continuing operations | 0,03 | 0,27 | |||
| Earnings from discontinued operations | – | – |
Group – Condensed consolidated report of financial position
| All amounts in KSEK | Note | 2019-09-30 | 2018-12-31 | 2017-12-31 |
| ASSETS | ||||
| Non-current assets | ||||
| Other intangible assets | 308 | 295 | 317 | |
| Property, plant and equipment | 22 | 24 | 44 | |
| Financial assets at fair value through profit or loss | 5 | 24 255 | – | – |
| Long term receivables - related parties | 521 | 4 210 | 2 672 | |
| Total non-current assets | 25 107 | 4 528 | 3 033 | |
| Current assets | ||||
| Trade receivables | 3 300 | 4 200 | 536 | |
| Investments in numismatic assets | 6 | 7 091 | 4 419 | 4 061 |
| Other receivables | 1 465 | 1 238 | 928 | |
| Short term receivables - related parties | 7 | 5 620 | – | 722 |
| Short term investments | 48 | 44 | 44 | |
| Cash and cash equivalents | 712 | 477 | 222 | |
| Total current assets | 18 236 | 10 378 | 6 513 | |
| TOTAL ASSETS | 43 343 | 14 906 | 9 545 | |
| All amounts in KSEK | Note | 2019-09-30 | 2018-12-31 | 2017-12-31 |
| Equity | ||||
| Equity attributable to owners of the parent | ||||
| Share capital | 36 112 | 3 202 | 3 202 | |
| Other paid in capital | 18 572 | 3 118 | 6 323 | |
| Reserves | 366 | 366 | ||
| Fair value reserve | 724 | – | – | |
| Translation difference | -1 717 | 132 | 103 | |
| Retained earnings including result for the year | -22 796 | – | -6 017 | |
| Profit (loss) for the period | 5 019 | 4 121 | 3 305 | |
| Total equity | 35 914 | 10 939 | 7 281 | |
| LIABILITIES | ||||
| Non-current liabilities | ||||
| Borrowings | 761 | 970 | 454 | |
| Retirement benefit obligations | 53 | 45 | 35 | |
| Total non-current liabilities | 813 | 1 015 | 489 | |
| Current liabilities | ||||
| Borrowings | 391 | 316 | 362 | |
| Trade payables | 5 477 | 2 636 | 1 414 | |
| Liabilities to related parties - Short term | 7 | 459 | – | – |
| Other liabilities | 61 | – | – | |
| deferred income and accrued expenses | 227 | – | – | |
| Total current liabilities | 6 616 | 2 953 | 1 776 | |
| TOTAL EQUITY AND LIABILITIES | 43 343 | 14 906 | 9 545 |
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