TradeLabs Plc
LSE : TLAP

August 28, 2009 05:27 ET

Audited Results for the year ended 31 March 2009

                                                           
                                                                                      28.08.2009
                                                                                    JE00B3FMYW12
                                           TRADELABS PLC
                                                 
                                           (PLUS: TLAP)
                                                 
                                  ("TradeLabs" or "the Company")
                                                 
The Directors of TradeLabs are pleased to announce shareholders with the audited results for the
year ended 31 March 2009.

Company Highlights

Turnover: £7,409,000
Operating Profit:  £1,140,000
Profit for financial year:  £1,303,000
Final Dividend: £0.001p (Total dividend: £0.002p for the year)
Earnings per share: £0.006778

Chairman's statement

I  am  pleased to announce a strong set of results for the period ended 31 March 2009 in which  the
board  successfully  completed  the flotation of the Company onto the  PLUS-quoted  market  on  9th
January 2009.  These results in fact cover the six months from the commencement of trading  on  1st
October 2008 to 31st March 2009.

The  Company was incorporated in Jersey, Channel Islands, on 27th August 2008 as a technology based
business  which  owns  and  exploits fully automated software trading futures  contracts  and  also
operates its own proprietary trading desk.

On  October  1, 2008, the Company acquired four trading algorithms together with income  receivable
from  subscribers  to the algorithms from TraderTools FZ LLC ("TraderTools"), a  company  based  in
Dubai, and commenced trading operations from that date.

Under  the  acquisition agreement, TradeLabs acquired all the intellectual property rights  to  the
algorithms  and  obtained  an  undertaking from TraderTools that  it  would  pay  the  Company  the
subscriber income from 700 subscribers at USD 99 per month for a period of two years, starting from
October 1, 2008.   The monthly subscriptions totaled £421,000 for the financial period to March 31,
2009.

The  decision to incorporate a proprietary trading desk into the business to demonstrate our  faith
in  the  algorithms  it acquired has proved to be correct.  The trading desk has generated  revenue
amounting to £ 752,000 during this financial period.

At  the  end of January 2009 the Company announced the acquisition of an additional four algorithms
for  trading  on the DAX and the FTSE.  These were again acquired from TraderTools for £3  million,
derived  from existing cash resources. In addition this further acquisition provided a further  900
subscribers, taking the total subscriber base to 1,600.

It  has  been  a  challenging time for financial markets around the world, but the  high  level  of
volatility, particularly in the last quarter of 2008, created the right environment for the Company
to  generate  substantial profits from its proprietary trading desk.  Now that markets are  calmer,
our  algorithms  will be adjusted for the lower levels of volatility ensuring  that,  when  trading
recommences in September (see below), profitability should be maintained.

Dividend

I  am  pleased to announce that we propose to pay a final dividend of £0.001p, bringing  the  total
dividends paid for the year to £0.002p per share.  The dividend will be paid on 30 October 2009  to
shareholders on the registrar at the close of business on 30 September 2009.

Change of Domicile

At  the  start  of  2009, the Directors took the decision to relocate our business activities  from
Dubai to Singapore in order to pursue potential business opportunities in the region. Singapore  is
increasingly being recognised as the financial hub of South East Asia and establishing the  Company
here  has already proved to be very beneficial. Over the course of the move to Singapore there  was
inevitably  some  disruption  which led to the temporary cessation  of  the  Company's  proprietary
trading  activities from 13th February 2009. This hiatus also affected the research and development
programme  which was put on hold during March this year. I am however, pleased to report that  both
proprietary  trading  and research and development will recommence in early  September  2009  using
United Overseas Bank (UOB) as the margin account broker.

The Board confirms that the existing subscriber base has been unaffected by the move; the number of
subscribers has in fact increased from 1,620 at the financial year end to 1,662 at the end of  June
2009.

The  Board also wishes to confirm that the temporary cessation of the proprietary trading desk  has
not  made a material impact on the Company's working capital which, in the opinion of the Board  is
sufficient for the Company's present requirements, that is at least for the next twelve months from
the date of this statement.

  Moving  the staff and operations has taken several months and we are pleased to report  that  the
transition  is  now  completed.  The Company is now based at 1, Changi North Street  1,  Singapore,
498789.

Naranjan Naidoo

Chairman


Statement of Income
For the period from August 27, 2008 (Date of inception) to March 31, 2009
                                                                                    
                                                                                      Period from
                                                                                 August 27,  2008
                                                                                (Date of inception) 

                                                                                    
                                                                                 To 31 March 2009
                                                                                            
                                                                                            £'000
Revenue from trading of futures contracts                                                     752
Revenue from subscription fees                                                                421
Sale of software                                                                            6,129
Other income                                                                                  107
                                                                                            ______
Total revenue                                                                               7,409

Purchase of software                                                                       (5,750)
Commission and other direct charges                                                           (72)
                                                                                            ______
Gross profit                                                                                1,587

General, administrative and legal expenses                                                   (447)
                                                                                            ______
Operating profit                                                                            1,140

Finance costs                                                                                 (38)
Exchange gain                                                                                 201
                                                                                            ______
Profit for the period                                                                       1,303

Earnings per share
Basic                                                                                    0.006778
                                                                                         _________

Diluted                                                                                       Nil


Balance Sheet
As at March 31, 2009
                                                                                    
                                                                                    31 March  2009
ASSETS                                                                                       £'000
Non-current assets
Intangible assets                                                                            5,000
                                                                                             _____
                                                                                             5,000
Current Assets
Trade and other receivables                                                                  2,433
Due from related parties                                                                       391
Inventory                                                                                       60
Cash and cash equivalents                                                                       40
                                                                                             2,924
                                                                                             _____
TOTAL ASSETS                                                                                 7,924

EQUITY
Share capital                                                                                6,000
Retained earnings                                                                            1,268
Total equity                                                                                 7,268
                                                                                             _____

LIABILITIES
Non-current liabilities
Provisions                                                                                       3
                                                                                             _____
                                                                                    
                                                                                                 3
Current liabilities
Other payables                                                                                  61
Dividend payable                                                                               200
Due to related parties                                                                         392
                                                                                            ______
                                                                                                                                                                                                                      653
                                                                                            ______

Total liabilities                                                                              656
                                                                                            ______

Total equity and liabilities                                                                 7,924


We  approve  these  financial statements and confirm that we are responsible  for  them,  including
selecting the accounting policies and making the judgments underlying them. We also confirm that we
have made available all relevant accounting records and information for their compilation.


_________________
Niraj Goel
Chairman, Board of Directors



Statement of Cash Flows
For the period from August 27, 2008 (Date of inception) to March 31, 2009
                                          
                                          
                                                                                     Period from
                                                                                 August 27, 2008 
                                                                              (Date of inception)
                                                                           
                                                                                 To 31 March 2009
                                                                                            £'000
                                                                                            
Profit for the period                                                                       1,303
Adjustment for:
Provision for employees' end of service indemnity                                               3
                                                                                            _____
Operating profit before working capital changes                                             1,306

Increase in trade and other receivables                                                    (2,433)
Increase in inventories                                                                       (60)
Increase in amount due from related parties                                                  (391)
Increase in amounts due to related parties                                                    392
Increase in dividend payable                                                                  200
Increase in other payables                                                                     61
                                                                                            ______
Net cash used by operating activities                                                        (925)

Cash flows from investing activities
Purchase of intangible fixed assets                                                        (5,000)

Net cash used in investing activities                                                      (5,000)
                                                                                           _______

Cash flows from financing activities
Share capital subscription                                                                  6,000
Share option based payment                                                                    165
Dividend                                                                                     (200)
                                                                                           _______

Net cash flow generated from financing activities                                           5,965
                                                                                           _______

Net increase in cash and cash equivalents                                                      40
                                                                                            ______

Cash and cash equivalents:
At the beginning of the period                                                                  -
                                                                                            ______
At the end of the period                                                                       40
                                                                                            ______

Cash and cash equivalents:
Cash and bank                                                                                  40
Margin deposit                                                                                  0
                                                                                            
                                                                                               40
                                                                                            ______

Independent Auditor's Report
To the shareholders of Trade Labs PLC

1.  We  were  engaged to audit the accompanying financial statements of Tradelabs Plc, Jersey  (the
"Company"),  which  comprise  the balance sheet as at March 31, 2009,  and  the  income  statement,
statement  of  changes in equity and cash flow statement for the reporting period from  August  27,
2008  (date  of inception) to March 31, 2009, and a summary of significant accounting policies  and
other explanatory notes.

Management's Responsibility for the Financial Statements
2.  Management  is  responsible  for  the  preparation and fair  presentation  of  these  financial
statements  in  accordance  with International Financial Reporting Standards.  This  responsibility
includes: designing, implementing and maintaining internal control relevant to the preparation  and
fair presentation of financial statements that are free from material misstatement, whether due  to
fraud  or  error;  selecting and applying appropriate accounting policies;  and  making  accounting
estimates that are reasonable in the circumstances.

Limitations on the scope of our audit
3.  As disclosed under note 14 to the financial statements, the Company's transactions recorded for
the  reporting  period  ended  March  31, 2009, were conducted substantially  with  parties  either
directly or indirectly related to the Company. These are summarized below:
                                                                           Amount          %
                                                                            £'000          Related

* Revenues from trading of future contracts                                  752           100
* Revenues from subscription fees                                            421           100
* Sales of software                                                        6,129            99.9
* Purchases of software                                                    5,750           100
* Intangible assets                                                        5,000           100
* Trade and other receivables                                              2,433            99.8
* Inventory                                                                   60           100
* Share capital                                                            6,000            92.1

Consequently,  our  audit evidence in respect of account balances, revenues and  expenditures  were
obtained  substantially  from directly or indirectly related parties.  We were  not  provided  with
sufficient  direct or indirect non - related party audit evidence in order to satisfy ourselves  as
to  the validity, completeness and accuracy of account balances, revenues and expenditures recorded
as of and for the reporting period ended March 31, 2009.

Disclaimer of auditor's opinion
4.  Because of the significance of the matter discussed in paragraph 3 above, we do not express  an
    opinion on the financial statements.

5 . Going concern:
The Company has not entered into any trading activities since February 13, 2009 except for research
and development which ceased in March 2009. Furthermore, the management have closed all its trading
margin accounts with its brokers. These conditions indicate the existence of a material uncertainty
which  may  cast  significant doubt about the Company's intention to continue as a  going  concern.
However,  these  financial  statements have been prepared on a going concern  basis  owing  to  the
representation of the Company's management of its intention to relocate and recommence its  trading
operations in Singapore subsequent to the balance sheet date.

MAZARS
Chartered Accountants
Dubai, June 23, 2009

These figures are extracted from the full report and accounts will are available on the PLUS
website.

The Directors of the issuer take full responsibility for this announcement.

Contacts

TradeLabs Plc
Marcus Yeoman                   Tel: +44 7970 028442

Investor Relations
Claire Hocken                   Tel: +65 8135 1831

St.Helen's Capital Plc
Mark Anwyl/Duncan Vasey         Tel: +44 (0)207 628 5582

Contact Information

  • TradeLabs Plc