Final Results

SyQic plc

("SyQic" or the "Group")

Final results

SyQic plc (AIM:SYQ), a fast growing provider of live TV and on-demand video content across mobile and internet enabled consumer devices, today announces its final results for the year ended 31 December 2014.

Financial highlights

· Revenue increased by 127% to £10.7 million (2013: £4.7 million)

· Substantial increase in profit before tax of 250% to £2.1 million (2013: £0.6 million before AIM transaction costs of £0.5 million)

· Cash less overdrafts of £0.22 million (2013: £1.05 million) following investment in 2014 into premium content licensing and the comprehensive redesign work for the launch of new Korean content streaming service

· Significant decrease in long‑term receivables balance to £0.8 million (2013: £2.3 million) as payment terms with Indonesian customers improve

· Raised £1.85m before costs through a placing to certain institutional and other investors

· Reduction in revenue dependence on main Indonesian customer

Operating highlights

· Purchased the operating assets of the Korean content streaming site Maaduu, subsequently rebranded as 'Cool2vu'

· Established the Group's core telco brand in Myanmar, after entering an agreement with Blue Ocean Operations Management Ltd

· Completed a successful migration to a global networking and hosting solution giving more capacity at a lower cost

· Yoomob transaction numbers increased from 9.6 million in 2013 to 21.5 million in 2014

Post-period end

· 6.7 million Yoomob subscriptions have been booked as at the end of April 2015 with a revenue value of approximately £4.0 million (unaudited)

· Strategic partnership with global streaming site Viki secures additional content and advertising revenues for SyQic

· Cool2vu later made available to users in Southeast Asia, Europe, South America, Central America, India and the Philippines through an expansion of the partnership with Viki

· The Directors remain comfortable on the level of the Group's cash balances which are currently in excess of £650,000 (when factoring the receipt of a further payment from the Group's key Indonesian customerwhich is in transit and anticipated to be received in the coming few days)

· A working capital facility of up to £3 million including a bank guarantee facility of up to £370,000 entered into with a Malaysian bank, Al Rajhi Banking & Investment Corporation (Malaysia) Bhd.

· Since launch the Cool2vu service has been accessed by more than 120,000 users in 181 different countries with an average session duration of 38 minutes

Jamal Hassim, Group Chief Executive Officer, commented: "The Board is delighted with the progress made during 2014, which saw not only a significant increase in revenues and earnings, but also the strong foundations for a bright 2015 and beyond.

"Furthermore, a great deal was achieved with our existing services, whilst also expanding through the acquisition of Maaduu, now called Cool2vu, which has led to rapid geographic expansion of our footprint in the first half of this financial year.

"With an improved long-term receivables and cash position, the business is well placed to capitalise on the high growth market opportunity for our on-demand video content across all mobile devices."

Chairman's statement

2014 saw increased global on-demand access to video streaming for mobile devices.

2014 was a significant year for the Company in terms of both operational and financial progress. Revenue generation from our core telco products increased while we continued to invest in the development of our exciting OTT (over-the-top) platforms.

Core business performance

Our core telco business performed well in 2014 with revenues increasing on the previous year by 127%. Importantly the revenue dependence on our primary Indonesian master content provider ("MCP") reduced from 62% of revenues in 2013 to 52% in 2014. The growth in Group revenue was primarily attributable to increased user take-up across the Group's telco service platforms. We continue to believe the opportunity exists to enhance this offering further by the addition of more compelling content and the Company plans to continue to acquire content that has a high value to its user base.

Korean content OTT service

In August 2014, we announced the purchase of the operating assets of the Korean drama streaming service, Maaduu from PlayTV Asia for £1.03 million and £0.06 million of shares in SyQic. The initial consideration of approximately £570,000 was paid in cash on completion. The transaction was structured in order to protect SyQic's shareholders and it is now considered unlikely that any of the conditional deferred consideration will become payable. The purchase was funded from a successful equity placing to raise £1.85 million before expenses.

Korean content was already very popular on the Company's sites, despite only representing a small proportion of SyQic's content portfolio. The rationale behind the acquisition was therefore to have a much deeper offering of this proven content to drive consumption and further increase user numbers. Following the acquisition, the Company is already seeing revenue generation opportunities in the areas of advertising, subscription and e-commerce.

The Company has since invested heavily in software development and successfully rebranded Maaduu as Cool2vu. Today, the Cool2vu platform can be accessed by both Android and iOS internet enabled devices in addition to PCs, dramatically increasing the Company's addressable market.

OTT payment service increase

In September 2014, we announced the activation of a mobile payment service for our OTT offerings. The new payment service will facilitate the monetisation of the Company's OTT services across its global markets.

The mobile phone payment service has been developed in partnership with international mobile payment provider Fortumo. Fortumo currently has live mobile payment services operating in 81 countries over six continents, with a strong focus on emerging markets. The partnership therefore facilitates SyQic's introduction of its OTT services into new geographies.

Launch of mobile service in Myanmar

In December 2014 the Company entered into a licencing agreement with Blue Ocean Operations Management Ltd, a prominent telco content provider in Myanmar. Under the agreement SyQic will make certain of its audio and video content available in Myanmar over the Telenor and Ooredoo mobile networks. We look forward to updating shareholders on this exciting development at the appropriate time.

Trade receivables

As in previous years the Company has generated a high proportion of its 2014 revenue from the Indonesian market where SyQic works with MCPs to access the end users of the three largest telcos. In previous years SyQic has worked mainly with one MCP in this market but the transaction volume coming through a second MCP has grown in 2014 to also represent a significant share of the Company's total revenue. As a result of the increase in revenue earned from Indonesia the combined amount receivable from the two MCPs, before adjustment for fair value, increased from £4.0 million to £7.5 million during 2014. The payment terms involved in operating this business model are protracted and periodically during the year this has put pressure on the Company's operating cash flow. In fact in previous years the Company had to agree to separate payment plans with PTNP to recover amounts due from 2012 and 2013. This has led the Company's auditors to include an emphasis of matter in relation to the trade receivables credit exposure in their audit statement. Nevertheless, I can report that our primary MCP met all scheduled payments during 2014 to recover these prior year billings. In addition, they have honoured their commitment to pay 2014 billings more promptly. Taking into account the payment that is currently in transit SyQic will have received payments relating to amounts billed up to and including July 2014.  Further details of our Indonesian operations are given in the Group Chief Executive Officer's Statement.

Outlook

I was delighted to be appointed Non-Executive Chairman of the Board in late November at such an exciting stage in the Company's development. The Directors anticipate that the Company's investment into premium content licensing for the existing services together with the development of the Cool2vu platform will provide it with a stronger value proposition going forward.

Together with global scalability and encouraging trends for video streaming, we have entered 2015 with increasing confidence and believe SyQic is well placed to meet its goals and objectives for the coming year and capitalise on the global video streaming trends and consequently deliver significant value for shareholders.

On behalf of the Board, I would like to express my sincere appreciation to the management and staff for their hard work in the last year. I would also like to thank our investors, customers and partners for their continuing strong support.

David Cotterell

Non-Executive Chairman

22 June 2015

Group Chief Executive Officer's statement

The Board is pleased to report the Group's results for the 2014 financial year in terms of financial progress, operational progress, industry position and the positive market backdrop that SyQic now operates within.

Financial review

For the 12 months to 31 December 2014, growth remained strong with revenue up by 127% to £10.7 million. Profit before tax increased 250% to £2.1 million (before 2013 AIM transactions costs) and the Group had net current assets of £6.4 million at the year end. The Group's cash less overdrafts position as of 31 December 2014 was £0.22 million (2013: £1.05 million). The Directors remain comfortable on the level of the Group's cash balances which are currently in excess of £650,000 (when factoring the receipt of a further payment from the Group's key Indonesian customer which is in transit and anticipated to be received in the coming few days).

Operational review

Core Telco business - Yoomob

The core business continues to perform strongly in Indonesia and Malaysia but we continue to look for new markets and new opportunities to drive the business forward. Yoomob transaction numbers increased from 9.6 million in 2013 to 21.5 million in 2014. 6.7 million subscriptions have been booked as at the end of April 2015 with a revenue value of approximately £4.0 million (unaudited). Average transaction values have increased this year as a result of the withdrawal of individual channel subscriptions and replacement with higher value bundle offers.

Indonesia remains a key emerging market in Southeast Asia for SyQic. With 240 million inhabitants, it's the world's fourth most populous country and the largest economy in the region. Indonesian consumers are young (with 60% under 30 years of age), tech savvy and regularly use mobile phones to access the internet.

Similar to other foreign providers in the Indonesian mobile phone valued-added services market, SyQic is unable to secure its own operating licence and therefore works with the three main telecoms companies via two MCPs. The companies through which SyQic's Yoomob service is delivered to end users are the three largest mobile phone operators in Indonesia. These are Indosat, Telkomsel and XL Axiata, all of which are themselves at least part owned by larger international telecoms groups.

The MCPs that SyQic works with deal with a large number of different international providers supplying a range of services from ringtones to mobile phone games into the large Indonesian market. As well as acting as single points of contact for the supply of services, the MCPs also collect and distribute payments back to the service providers. The scale and complexity of the value-added service operations of the telcos mean that payments to the MCPs themselves can take a number of months. Once the MCPs have been paid they will normally pay the service providers within 30 days.

In December 2014 we announced SyQic will make certain audio and video content available in Myanmar, via its core brand, Yoomob, to Ooredoo and Telenor subscribers. Ooredoo is a leading international communications company serving a customer base of 92.9 million in markets throughout the Middle East, North Africa and South East Asia. Telenor Group is one of the world's largest mobile companies with operations in Scandinavia, Eastern Europe, and Asia and has more than 160 million mobile subscribers.

According to a recent Fortune article (http://fortune.com/2014/09/18/asia-myanmar-burma-telecommunications-market/), billions of dollars of foreign investment are being made in Myanmar leading to predictions that it will become the world's fastest ever deployment of mobile services. Currently just 12.3% of the 53 million population has access to a mobile phone. Ovum, the global market research agency, predicts that the number of new mobile subscribers in Myanmar will grow at a compounded annual rate of nearly 30% to reach 32.3 million people by the end of 2019.

Following the relaxation of the rules restricting foreign operators in the market, we believe there is large and increasing demand within Myanmar for foreign media content and we are confident that this market will respond positively to SyQic's compelling offering.

GlobeTel

We were very pleased by the end of year to have reached agreement with telecoms provider UK GlobeTel Ltd ("Globe UK") to launch a UK based co-branded version of our Filipino Yoonic OTT service. Under this agreement, Globe UK's customers will be able to watch SyQic's live and on-demand channels from the Philippines via payment from their existing Globe account on a subscription-based service. The agreement lasts for an initial period of one year and is renewable by both parties.

Cool2vu (formerly Maaduu)

We announced in August 2014 the asset purchase from PlayTV Asia in Malaysia, of Maaduu, an online video-on-demand service. The Company successfully re-launched the service, across Malaysia in October 2014 and subsequently across Indonesia and Singapore in November 2014. More recently, under its new branding Cool2vu, the service has expanded into Europe, South and Central America, India and the Philippines.

Currently the majority of customers are from Malaysia, being drawn from the existing Maaduu base, but we are now seeing encouraging growth patterns in South America and Europe. The Cool2vu service has already started generating advertising revenue and this is a revenue stream we expect to increase substantially as the service enters new markets and its user base continues to grow. In addition to the advertising revenue generated by Cool2vu, our strategy is to cross sell the platform's content to our core telco customers to generate additional revenue.

Industry consolidation

The Company is clearly now entering an exciting period of its corporate development. The successful purchase and launch of the Cool2vu service platform was extremely timely given the backdrop of the recent consolidation across the industry which has seen the purchase of Viki by Rakuten for $200 million in September 2013 and DramaFever, by Softbank for an estimated $100 million in October 2014.

Both Viki and DramaFever are focused on supplying Southeast Asian content and we believe both deals indicate that targeting highly engaged audiences with niche content is a valuable strategy for the Company. SyQic is already developing a strong working relationship with Viki, with each party focusing on clear strategic areas in order to jointly monetise the market opportunity effectively.

Marketing and social media

Having expanded the Cool2vu service into new markets, we need to move quickly to raise awareness of the service and ultimately, build a customer base. To that end, we are progressing an aggressive social media proliferation strategy globally that is already bearing fruit. We have looked at our online discoverability, engaged with UK Trade and Investment in these new and emerging markets, undertaken an external link building campaign and commissioned a forensic style audit of the cool2vu.com website by an acknowledged industry leader with a view to enhancing our search engine optimisation.

In addition, the Company continues to collaborate with a specific range of news websites, groups and associations, and community leaders in various locations.

Research and development

Research and development continues to lie at the core of our activities. Development is carried out on an on-going basis in order to enhance the user experience and functionality across all our platforms and interfaces.

Outlook

The Company firmly believes that it has achieved a timely market entry as demand for the content that it supplies has never been more highly sought. The revenue recorded in the second half of 2014 was higher than that of the first half and we expect this trend of revenue growth to continue.

Notwithstanding these growth trends, the coming months will be significant for SyQic as the Cool2vu platform becomes established and we realise the full potential of the opportunity in Myanmar. 2015 promises to be exciting as we build on the achievements made in 2014.

The Company therefore looks to the year ahead with confidence.

Jamal Hassim

Group Chief Executive Officer

22 June 2015

Consolidated Statement of Comprehensive Income

For the year ended 31 December 2014

Consolidated Statement of Financial Position

As at 31 December 2014

Consolidated Statement of Changes in Equity

For the year ended 31 December 2014

Consolidated Statement of Cash Flows

For the year ended 31 December 2014

Notes to the Financial Statements

1. General information

The Company is a public company limited by shares and incorporated in Jersey. The Company is domiciled in Jersey with its registered office and principal place of business is at 13‑14 Esplanade, St Helier, Jersey, Channel Islands JE1 1BD.

The principal activity of the Group is the provision of live TV and on‑demand paid video content across various types of internet‑enabled consumer electronics devices.

Basis of preparation

The Company was incorporated under the laws of Jersey on 13 November 2013, and on 4 December 2013 acquired the entire share capital of SyQic Capital Private Limited. As a result of this transaction, the ultimate shareholders in SyQic Capital Private Limited received shares in the Company in direct proportion to their original shareholdings in SyQic Capital Private Limited.

In determining the appropriate accounting treatment for this transaction, the Directors considered IFRS 3 - Business Combinations (Revised 2008). However, they concluded that this transaction fell outside the scope of IFRS 3 (revised 2008) since the transaction described above represents a combination of entities under common control.

In accordance with IAS 8 - Accounting Policies, Changes in Accounting Estimates and Errors, in developing an appropriate accounting policy, the Directors have considered the pronouncements of other standard setting bodies and specifically looked to accounting principles generally accepted in the United Kingdom ("UK GAAP") for guidance (FRS 6 - Acquisitions and Mergers) which does not conflict with IFRS and reflects the economic substance of the transaction.

Under UK GAAP, the assets and liabilities of both entities are recorded at book value, not fair value. Intangible assets and contingent liabilities are recognised only to the extent that they were recognised by the legal acquirer in accordance within applicable IFRS, no goodwill is recognised, any expenses of the combination are written off immediately to the income statement and comparative amounts, if applicable, are restated as if the combination had taken place at the beginning of the earliest accounting period presented.

Therefore, although the Group reconstruction did not become unconditional until 28 November 2013, these consolidated financial statements are presented as if the Group structure has always been in place, including the activity from incorporation of the Group's principal subsidiary. Both entities had the same management as well as majority shareholders.

The consolidated financial statements are presented in Pounds Sterling, which is the currency of the primary economic environment in which the Company operates. All values are rounded to the nearest thousand pounds except where otherwise indicated. They have been prepared under the historical cost convention, except for financial instruments that have been measured at fair value through profit and loss.

The financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the EU ("IFRS") issued by the International Accounting Standards Board ("IASB"), including related interpretations issued by the International Financial Reporting Interpretations Committee ("IFRIC").

As permitted by section 105 of the Jersey Companies Act, separate financial statements of the Company are not presented.

Certain comparatives have been restated to give a more consistent presentation against current year amounts.

This statement was approved by the directors on 22 June 2014. This statement does not constitute the Group's statutory accounts for the year ended 31 December 2014. Statutory accounts for the year ended 31 December 2013 have been delivered to the Jersey Registrar of Companies. The auditor's report on those accounts contained an emphasis of matter in relation to certain trade receivables but did not contain any statement equivalent to that required under section 495 of the Companies Act 2006. The auditor's report on the accounts for the year ended 31 December 2014 is unqualified although it does contain the following emphasis of matter in relation to trade receivables:

"Emphasis of matter - trade receivables credit exposure

In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosures in notes 11 and 18(iii) to the financial statements concerning the credit exposure to the Group's two largest customers whose debt is included at a fair value of £6,968,000 (2013: £3,628,000) where a balance of £4,154,000 (2013: £190,000) exceeds their normal payment terms. In the previous year the Group entered into a repayment plan with one of those customers in respect of both 2012 and 2013 sales which is due to be fully settled in 2016 and, accordingly, £1,485,000 (2013: £1,043,000) is classified within current assets and £768,000 (2013: £2,251,000) within non-current assets. The Directors of the Company are of the opinion that the debts are fully recoverable and, thus, no provision for impairment has been made within the financial statements as at 31 December 2014 (2013: £nil). The impact of a delay or non-repayment of these debts would damage the future cash flows of the Group and its ability to continue as a going concern. The financial statements have been prepared on the going concern basis, which depends initially on the £3million working capital facility, as described in note 1, or the ability to raise future funds. The financial statements do not include any adjustments that would result if the Group was unable to recover these amounts in full or unable to continue as a going concern.

The Annual report will shortly be available to the shareholders and the public on the Company's website (www.syqic.com) in accordance with AIM Rule 20.

Going concern

The Directors have assessed the Company's ability to continue in operational existence for the foreseeable future in accordance with the FRC Going Concern and Liquidity Risk guidance (October 2009).

The operations of the Group are currently being financed from funds which the Company has raised from private placings of its shares and loans from certain of its shareholders and Directors. The Group is reliant on the continuing support from its existing shareholders and Directors and the expected support of future shareholders and Directors.

Having made relevant and appropriate enquiries, including consideration of the Group's current resources and working capital forecasts, the Directors have a reasonable expectation that, at the time of approving the financial statements, the company has adequate resources to continue in operational existence for at least the next twelve months. The Group held a cash less overdraft balance of £218,000 at 31 December 2014 and has funding plans in place to meet the Group's planned activities having accepted a new £3 million working capital facility from Al Rajhi Banking & Investment Corporation (Malaysia) Bhd in June 2015 which the Directors believe strongly enhances the Group's working capital position. In this regard the Directors do recognise that the facility can only be operated on a one for three basis and its contribution to the Group's working capital position is closely linked to the timing of payment from its major customers.

The Directors believe that payment terms from its major customers will continue to improve and accordingly the Board continues to adopt the going concern basis in preparing the financial statements. Further information regarding trade receivables is disclosed in Note 11.

Adoption of new and revised International Financial Reporting Standards

None of the new and revised Standards and Interpretations that were adopted in the current year were considered to have had a material effect to the presentation or disclosures reported in these consolidated financial statements.

Standards, amendments and interpretations to published standards not yet effective

The Directors have considered those Standards and Interpretations which have not been applied in the consolidated financial statements but are relevant to the Group's operations, that are in issue but not yet effective and do not consider that any will have a material impact on the future results of the Group.

2. Basis of consolidation

The consolidated financial statements include the financial statements of all subsidiaries. The financial year ends of all entities in the Group are coterminous.

The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control over the operating and financial decisions is obtained and cease to be consolidated from the date on which control is transferred out of the Group. Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain economic benefits from its activities.

All intercompany balances and transactions, including recognised gains arising from inter‑group transactions, have been eliminated in full.

Unrealised losses are eliminated in the same manner as recognised gains except to the extent that they provide evidence of impairment.

The principal activities of the subsidiaries are as follows:

* Incorporated 26 December 2014

3. Significant accounting policies

(a) Critical accounting estimates and assumptions

The preparation of financial information in conformity with IFRS requires the use of certain critical accounting estimates. It also requires the Directors of the Company to exercise their judgement in the process of applying the accounting policies which are detailed below. These judgements are continually evaluated by the Directors and management and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The key estimates and underlying assumptions concerning the future and other key sources of estimation uncertainty at the statement of financial position date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial period are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

Trade receivables

The valuation of trade receivables has been reached on the basis that the full value of customer balances will be recovered. Management believe that the extended payment terms experienced with some key customers is no reflection of their ability or intention to meet the payments and is caused by the time involved in reconciling the payments due to the Company and the two stage payment process involved in dealing through a third party.

A provision has been taken to achieve a fair valuation of trade receivables in respect of the time value of money concept.

Valuation of intangible assets

The determination of the fair value of assets and liabilities, whether arising from separate purchases or from the acquisition as part of business combinations, and development expenditure which is expected to generate future economic benefits, are based, to a considerable extent, on management's judgement.

The fair value of these assets is determined by discounting estimated future net cash flows generated by the asset where no active market for the assets exists. The use of different assumptions for the expectations of future cash flows and the discount rate would change the valuation of the intangible assets.

Allocation of the purchase price to each asset affects the results of the Group as finite lived intangible assets are amortised over their estimated useful lives. The useful life used to amortise intangible assets relates to the expected future performance of the assets acquired and management's estimate of the period over which economic benefit will be derived from the asset.

The estimated useful life principally reflects management's view of the average economic life of each asset and is assessed by reference to historical data and future expectations. Any reduction in the estimated useful life would lead to an increase in the amortisation charge.

Deferred consideration

In some instances the cost of acquiring a business or assets will not be known at the time of acquisition as it will depend in part on the achievement of certain performance criteria at a future date. Management exercises its judgement in estimating the future value of the anticipated deferred consideration.

In particular, on 18 August 2014, the Company entered into a conditional asset purchase agreement to acquire Maaduu, an online video‑on‑demand service providing Korean content across multiple devices, which was owned by PlayTV Asia Sdn Bhd ("PlayTV Asia"), for a consideration of up to RM5,500,000 (approximately £1,030,000) plus £60,000 of shares in SyQic plc. The initial consideration of RM3,100,000 (approximately £570,000) was paid on completion.

Two additional payments of RM1,500,000 (approximately £275,000) and RM 900,000 (approximately £165,000) are payable together with the issue of £60,000 of shares in the Company on the achievement of certain short‑term performance criteria. The Directors have reviewed the financial performance of the service and have determined that neither of the additional payments nor the issue of shares are likely to fall due. Accordingly, no provision has been made for this deferred consideration.

Impairment reviews

IFRS requires management to undertake an annual test for impairment of indefinite lived assets and, for finite lived assets, to test for impairment if events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

Management assesses the impairment of intangible assets subject to amortisation whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors considered important that could trigger an impairment review include the following:

· significant underperformance relative to historical or projected future operating results;

· significant changes in the manner of the use of the acquired assets or the strategy for the overall business; and

· significant negative industry or economic trends.

The complexity of the estimation process and issues related to the assumptions, risks and uncertainties inherent in the application of the Group's accounting estimates in relation to finite lived intangible assets affect the amounts reported in the financial statements, especially the estimates of the expected useful economic lives and the carrying values of those assets.

The Group prepares and approves a detailed annual budget, and a three year management plan for its operations, which are used in the value in use calculations.

If business conditions were different, or if different assumptions were used in the application of this and other accounting estimates, it is likely that materially different amounts could be reported in the Group's financial statements.

Management reviews loans and receivables for objective evidence of impairment at least quarterly. Significant financial difficulties of the debtor, the probability that the debtor will enter bankruptcy, and default or significant delay in payments are considered objective evidence that a receivable is impaired. In determining this, management makes a judgement as to whether there is observable data indicating that there has been a significant change in the payment ability of the debtor, or whether there have been significant changes with adverse effect in the technological, market, economic or legal environment in which the debtor operates.

Where there is objective evidence of impairment, management makes a judgement as to whether an impairment loss should be recorded as an expense. In determining this, management uses estimates based on historical loss experience for assets with similar credit risk characteristics. The methodology and assumptions used for estimating both the amount and timing of future cash flows are reviewed regularly to reduce any differences between the estimated loss and actual loss experience.

(i) Impairment of financial assets

All financial assets (other than those categorised at fair value through profit or loss), are assessed at the end of each reporting period as to whether there is any objective evidence of impairment as a result of one or more events having an impact on the estimated future cash flows of the asset.

An impairment loss in respect of loans and receivables financial assets is recognised in profit or loss and is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the financial asset's original effective interest rate.

In a subsequent period, if the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through profit or loss to the extent that the carrying amount of the asset at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised.

(ii) Impairment of non‑financial assets

The carrying values of intangible assets are reviewed at the end of each reporting period for impairment when there is an indication that the assets might be impaired. Impairment is measured by comparing the carrying values of the assets with their recoverable amounts. The recoverable amount of the assets is the higher of the assets' fair value less costs to sell and their value in use, which is measured by reference to discounted future cash flow.

An impairment loss is recognised in profit or loss immediately.

In respect of assets other than goodwill, and when there is a change in the estimates used to determine the recoverable amount, a subsequent increase in the recoverable amount of an asset is treated as a reversal of the previous impairment loss and is recognised to the extent of the carrying amount of the asset that would have been determined (net of amortisation and depreciation) had no impairment loss been recognised. The reversal is recognised in profit or loss immediately.

(b) Currency translation

(i) Functional and presentation currency

The individual financial information of each Group entity is measured in the currency of the primary economic environment in which the entity operates (its functional currency). The consolidated financial statements of the Group are presented in Pounds Sterling, which is the presentation currency of SyQic plc (the "Company").

(ii) Transactions and balances

Transactions in foreign currencies are converted into the respective functional currencies on initial recognition, using the exchange rates approximating those ruling at the transaction dates. Monetary assets and liabilities at the end of the reporting period are translated at the rates ruling as of that date. Non‑monetary assets and liabilities are translated using exchange rates that existed when the values were determined. All exchange differences are recognised in profit or loss.

(iii) Foreign operations

Assets and liabilities of foreign operations are translated to Pounds Sterling at the rates of exchange ruling at the end of the reporting period. Revenues and expenses of foreign operations are translated at exchange rates approximating those ruling at the dates of the transactions. All exchange differences arising from translation are taken directly to other comprehensive income and accumulated in equity under the foreign exchange translation reserve. On the disposal of a foreign operation, the cumulative amount recognised in other comprehensive income relating to that particular foreign operation is reclassified from equity to profit or loss.

Fair value adjustments arising from the acquisition of foreign operations are treated as assets and liabilities of the foreign operations and are recorded in the functional currency of the foreign operations and translated at the closing rate at the end of the reporting period. All exchange differences are recognised in other comprehensive income.

(c) Related parties

A related party is defined as follows:

(i) a person or a close member of that person's family is related to the Company or its subsidiaries if that person:

(A) has control or joint control over the subsidiaries;

(B) has significant influence over the subsidiaries; or

(C) is a member of the key management personnel of the Company or its subsidiaries.

(i) an entity is related to the Company or its subsidiaries if any of the following conditions apply:

(A) the entity and the subsidiaries are members of the same Group (which means that each parent, subsidiary and fellow subsidiary is related to the others);

(B) one entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member);

(C) both entities are joint ventures of the same third party;

(D) one entity is a joint venture of a third entity and the other entity is an associate of the third entity;

(E) the entity is a post-employment benefit plan for the benefit of employees of either the subsidiaries or an entity related to the subsidiaries;

(F) the entity is controlled or jointly controlled by a person identified in (i); or

(G) a person identified in (i)(A) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity).

Close members of the family of an individual are those family members who may be expected to influence, or be influenced by, that individual in their dealings with the entity.

(d) Property, plant and equipment

All items of property, plant and equipment are initially recorded at cost. The cost of an item of property, plant and equipment initially recognised includes its purchase price and any cost that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended. The cost of an item of property, plant and equipment including subsequent expenditure is recognised as an asset if, and only if, it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably.

All repair and maintenance expenses are recognised in profit or loss when incurred.

After initial recognition, property, plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment loss.

All items of property, plant and equipment are depreciated using the straight‑line method to write off the cost of the assets over their estimated useful lives as follows:

The estimated useful life and depreciation method are reviewed, and adjusted as appropriate, at each reporting date to ensure that the amount, method and period of depreciation are consistent with the expected pattern of economic benefits from items of property, plant and equipment. Fully depreciated assets are retained in the financial statements until they are no longer in use.

An item of property, plant and equipment is de-recognised upon disposal or when no future economic benefits are expected from its use or disposal. The gain or loss on retirement or disposal is determined as the difference between any sales proceeds and the carrying amounts of the asset and is recognised in profit or loss within other income/(expenses).

(e) Intangible assets

All intangible assets, except goodwill, are stated at cost less accumulated amortisation and any accumulated impairment losses.

Acquisition related intangible assets

The user base and related software acquired as part of the acquisition of the Maaduu service in August 2014, are amortised over their estimated useful lives which are individually assessed by management. The estimated useful lives of each of these assets are three years.

Where such Intangible assets not yet available for use they are tested for impairment annually or more frequently if the events or changes in circumstances indicate that the carrying value may be impaired either individually or at the cash-generating unit level. Such intangible assets are not amortised.

Gains or losses arising from de-recognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in profit or loss when the asset is de-recognised.

Research and development expenditure

Research expenditure is recognised as an expense when it is incurred.

Development costs are recognised as an expense except that costs incurred on development projects are capitalised as long-term assets to the extent that such expenditure is expected to generate future economic benefits. Development expenditure is capitalised if, and only if the Group can demonstrate all of the following:

· its ability to measure reliably the expenditure attributable to the asset under development;

· the product or process is technically and commercially feasible;

· its future economic benefits are probable;

· its ability to use or sell the developed asset; and

· the availability of adequate technical, financial and other resources to complete the asset under development.

Capitalised development expenditure is measured at cost less accumulated amortisation and impairment losses, if any development expenditure initially recognised as an expense is not recognised as assets in subsequent periods.

Capitalised development expenditure is amortised on a straight-line method over a period of five years and begins when development is complete and the asset is available for sale or use. In the event that it is no longer probable that the expected future economic benefits will be recovered, the development expenditure is written down to its recoverable amount.

(f) Financial instruments

Financial instruments are recognised in the statements of financial position when the Group has become a party to the contractual provisions of the instruments.

Financial instruments are classified as liabilities or equity in accordance with the substance of the contractual arrangement. Interest, dividends, gains and losses relating to a financial instrument classified as a liability are reported as an expense or income. Distributions to holders of financial instruments classified as equity are charged directly to equity.

Financial instruments are offset when the Group has a legally enforceable right to offset and intends to settle either on a net basis or to realise the asset and settle the liability simultaneously.

A financial instrument is recognised initially at its fair value plus, in the case of a financial instrument not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial instrument.

Financial instruments recognised in the statements of financial position are disclosed in the individual policy statement associated with each item.

Financial assets are derecognised when the contractual rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. On derecognition of a financial asset in its entirety, the difference between the carrying amount and the sum of the consideration received and any cumulative gain or loss that had been recognised in other comprehensive income is recognised in profit or loss.

(i) Financial assets

On initial recognition, financial assets are classified as either financial assets at fair value through profit or loss, held‑to‑maturity investments, loans and receivables financial assets, or available‑for‑sale financial assets, as appropriate.

The Group classifies all its financial assets as loans and receivables. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition.

Loans and receivables financial assets

Trade receivables and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables financial assets. Loans and receivables financial assets are measured at amortised cost using the effective interest method, less any impairment loss. Interest income is recognised by applying the effective interest rate, except for short‑term receivables when the recognition of interest would be immaterial. The Group's loans and receivables financial assets comprise trade and other receivables and cash and cash equivalents included in the Consolidated Statement of Financial Position.

ii) Financial liabilities

Financial liabilities are recognised when, and only when, the Group becomes a party to the contractual provisions of the financial instrument.

All of the Group's financial liabilities are classified as financial liabilities measured at amortised cost.

All financial liabilities are recognised initially at fair value plus directly attributable transaction costs and subsequently measured at amortised cost using the effective interest method other than those categorised as fair value through profit or loss.

Fair value through profit or loss category comprises financial liabilities that are either held for trading or are designated to eliminate or significantly reduce a measurement or recognition inconsistency that would otherwise arise. Derivatives are also classified as held for trading unless they are designated as hedges. There were no financial liabilities classified under this category.

A financial liability is de‑recognised when the obligation under the liability is discharged, cancelled or expires. When an existing financial liability is replaced by another from the same party on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a de‑recognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognised in the profit or loss.

(iii) Equity instruments

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from proceeds. Dividends on ordinary shares are recognised as liabilities when approved for appropriation.

(g) Leases

The Group holds certain computer equipment and motor vehicles under finance leases. Finance leases, which transfer to the Group substantially all the risks and rewards incidental to ownership of the leased item, are capitalised at the inception of the lease at the fair value of the leased item or, if lower, at the present value of the minimum lease payments. Any initial direct costs are also added to the amount capitalised. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly to profit or loss. Capitalised lease assets are depreciated over the shorter of the estimated useful life of the asset or the lease term, if there is no reasonable certainty that the Group will obtain ownership by the end of the lease term.

The Group also leases certain property under operating leases. Operating lease payments are recognised as an expense on a straight‑line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

(h) Share capital

Proceeds from issuance of ordinary shares are classified as stated capital in equity. Incremental costs directly attributable to the issuance of new ordinary shares are deducted against share capital.

(i) Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured, regardless of when the payment is made. Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates and sales taxes or duty. The Group assesses its revenue arrangements to determine if it is acting as principal or agent. The Group has concluded that it is acting as a principal in all of its revenue arrangements.

Revenue from subscriptions and support services are recognised over the specific period of respective service agreements. In making its judgement, management considered the detailed criteria for the recognition of revenue set out in IAS 18 - Revenue. The Directors of the Group are satisfied that the significant risks and rewards are transferred and that the recognition of revenue over the duration of a contract or agreement is appropriate.

(j) Income taxes

Income tax for each reporting period comprises current and deferred tax.

Current tax is the expected amount of income taxes payable in respect of the taxable profit for the year and is measured using the tax rates that have been enacted or substantively enacted at the end of the reporting period.

Deferred tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements.

Deferred tax liabilities are recognised for all taxable temporary differences other than those that arise from goodwill or excess of the Group's interest in the net fair value of the acquired company's identifiable assets, liabilities and contingent liabilities over the business combination costs or from the initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction, affects neither accounting profit nor taxable profit.

Deferred tax assets are recognised for all deductible temporary differences, unused tax losses and unused tax credits to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences, unused tax losses and unused tax credits can be utilised. The carrying amounts of deferred tax assets are reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient future taxable profits will be available to allow all or part of the deferred tax assets to be utilised.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realised or the liability is settled, based on the tax rates that have been enacted or substantively enacted at the end of the reporting period.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when the deferred income taxes relate to the same taxation authority.

Unrecognised deferred tax assets are reassessed at each reporting date and are recognised to the extent that it has become probable that future taxable profit will allow deferred tax assets to be recovered.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax items are recognised in correlation to the underlying transactions either in other comprehensive income or directly in equity.

Deferred tax arising from a business combination is included in the resulting goodwill or excess of the Group's interest in the net fair value of the acquired company's identifiable assets, liabilities and contingent liabilities over the business combination costs.

(k) Government grants

The government grant is to promote research and development and operates on a reimbursement basis and following a submission (effectively an expense claim) which goes through an approval process, the grant is disbursed and receipt is treated as reducing some development expenses initially capitalised as an intangible asset. Thus the grant is recognised in profit and loss over the life of the development cost asset by way of reduced amortisation charge.

(l) Share-based payment arrangements

Equity-settled share-based payments to employees and others providing similar services are measured at the fair value of the equity instruments at the grant date.

The fair vale determined at the grant date of the equity‑settled share‑based payments is expensed on a straight-line basis over the vesting period, based on the Group's estimate of equity instruments that will eventually vest, with a corresponding increase in equity. At the end of each reporting period, the Group revises its estimate of the number of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognised in profit or loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to other reserves.

4. Segmental analysis

IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision maker (which takes the form of the Board of Directors of the Company) as defined in IFRS 8, in order to allocate resources to the segment and to assess its performance.

Based on management information there is only one operating segment. Revenues are reviewed based on the products and services provided.

The Directors of the Company consider the principal activity of the Group to be that of a provider of OTT live TV and on‑demand paid video content across mobile, internet‑enabled consumer electronics devices such as mobile phones and tablets, and to consummate one reportable segment, that of the provision of OTT live TV and on‑demand paid video content services.

Revenues derived from major customers, which individually represent 10% or more of total revenue are as follows:

All revenues were generated by operations in South East Asia in each of the two years ended 31 December 2014.

5. Income tax expense

The major components of income tax expense for each year were:

A reconciliation of income tax expense applicable to the profit before taxation at the statutory tax rates to the income tax expense at the effective tax rate of the subsidiaries is as follows:

Deferred tax assets were written off in a subsidiary company as the Directors consider that it is no longer probable that sufficient future taxable profits will be available to allow all or part of the deferred tax assets to be utilised.

There is no taxation arising from other comprehensive income.

6. Earnings per share

Basic earnings per share is calculated by dividing the profit attributable to equity holders by the weighted average number of ordinary shares in issue during the year.

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential shares.

7. Property, plant and equipment

Assets held under finance leases

The carrying amounts of computers and motor vehicles held under finance leases at 31 December 2014 were £7,500 (2013: £31,000) and £35,000 (2013: £40,000) respectively.

8. Trade receivables

Included in the trade receivables at 31 December 2014 is an amount equivalent to £4,932,000 (31 December 2013: £3,703,000) owed by a foreign customer of which approximately £1,335,000 (31 December 2013: £1,622,000) has been outstanding for more than a year.

SCSB agreed two payment plans in respect of both 2012 and 2013 sales with the foreign customer, a Master Content Provider (''MCP''), during the prior year. Under these plans, a total of £567,000 is being paid in monthly instalments during 2015 with six monthly payments totalling £768,000 to be made the following year with the final payment to settle the debt in full in June 2016. As the debt was not due to be fully repaid until June 2016, amounts receivable under the payment plan agreed were discounted at the rate of 6.6% with such discount being unwound over the remaining course of the payment plan. In addition amounts invoiced during 2014 have been discounted at a discount rate of 7.75% over the period they are to be expected to be settled to reflect the time value of money.

In assessing the recoverability of this debt, the Directors have given due consideration to all pertinent information relating to the ability of the MCP customer to settle the debt and expect this amount to be fully recoverable. In particular, billings in respect of 2012 and 2013 have been settled against payment plans agreed between the parties at the end of the respective years. The 2012 payment plan comprised scheduled monthly payments from January 2013 to December 2015 while the 2013 plan covered the period January 2014 to June 2016. Both these plans have been adhered to in terms of payment dates and amounts. Accordingly, no further impairment has been made in respect of this amount.

Other than the debt with the foreign customer described above, the Group's credit terms range between 30 and 90 days.

Trade receivables and the aggregate amounts of discount applied in each year are as follows:

Ageing analysis

The ageing analysis of trade receivables as at each of the two years ended 31 December 2014 is as follows:

9. Cash and cash equivalents

For the purpose of the statement of cash flows, cash and cash equivalents comprise the following:

10. Related party information

Transactions between SyQic plc and its subsidiaries, which are related companies of SyQic plc have been eliminated on consolidation and are not disclosed in this note. Details of transactions between the Group and other related companies are disclosed below. Balances relating to transactions with Directors are shown in the Consolidated Statement of Financial Position.

Transactions with key management personnel

The amounts owing to Directors are unsecured, interest free and are repayable on demand. The amounts owing are to be settled in cash.

Directors' guarantees

There is a personal guarantee and indemnity from Muhamad Jamal Bin Muhamad Hassim, the Chief Executive Officer of the Company, and Mohd Radzi Bin Abdul Hamid, dated 6 December 2011, in support of a hire purchase agreement between Orix Credit Malaysia Sdn Bhd and SCSB for computer equipment.

There is a personal guarantee from Muhamad Jamal Bin Muhamad Hassim dated 25 December 2011, in support of a variation agreement between SCSB and CIMB Bank Berhad dated 25 December 2011 relating to the hire purchase of a motor vehicle.

There is a personal guarantee from Muhamad Jamal Bin Muhamad Hassim and Lee Ai Lin, a director of SCSB, dated 5 July 2013, in support of a Maybank Islamic Berhad Islamic Banking Facility Cash Line of RM500,000 taken out by SCSB.

Amounts owing to shareholders

* Stream Global is a shareholder of SyQic plc and Chak Kong Soon is a Director.

**Sierac was a shareholder of SCPL, the previous parent of the Group that was acquired by SyQic plc. It ceased to be a shareholder during the year ended 31 December 2013.

The amounts owing to shareholders are unsecured, interest‑free and repayable on demand.

Remuneration of Directors and other transactions

The remuneration, interests and related party transactions with the Directors of the Company, considered to be the key management personnel of the entity, are disclosed in the Directors' Report.