NCR (NIGERIA) : QUARTER 3 - FINANCIAL STATEMENT FOR 2023

NCR Nigeria Plc

THIRD QUARTER UNAUDITED CONDENSED FINANCIAL STATEMENTS 30 SEPTEMBER 2023

NCR (NIGERIA) PLC

PERIOD ENDED 30 SEPTEMBER 2023

UNAUDITED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

						July-Sept	July-Sept
		30/09/2023	30/09/2022		2023	2022
	Note	N'000		N'000		N'000	N'000
Revenue from contracts with customers	3	2,443,441	1,739,241		551,194	861,729.37
Cost of Sales	3.2	(2,882,490)		(1,829,998)		(300,961)	(1,127,196)
Gross profit		(439,049)	(90,757)		250,233	(265,467)
Other income	4	13,052	2,061		6,941	548.06
Distribution Expenses	12	(41,050)	(115,265)		(19,839)	(33,137.07)
Administrative Expense	13	(926,247)	(556,415)		(230,403)	(487,158.30)
		(1,393,293)	(760,376)		6,932	(785,214)
Profit/ (Loss) before Tax
	(1,393,293)		(760,376)		6,932	(785,214)
Income Tax Expense		-		-		-	-
Profit/ (Loss) after Tax		(1,393,293)	(760,376)		6,932	(785,214)
Other Comprehensive Income
Items that will not be reclassified subsequently to profit or loss:
Actuarial loss on retirement benefit; net of tax		-		-		-	-
Other Comprehensive Loss for the Year, net of Tax		-	-
Total Comprehensive Income for the Year, net of Tax		(1,393,293)	(760,376)		6,932	(785,214)
Earnings per share data:
Basic/ diluted earnings/ (loss) per share (Naira)		(12.90)		(7.04)		0.06	(7.27)

NCR (NIGERIA) PLC

PERIOD ENDED 30 SEPTEMBER 2023

UNAUDITED STATEMENT OF FINANCIAL POSITION

			30/09/2023	31/12/2022
ASSETS	Note	USD	N'000	N'000
Non-current assets			33,396
Property, plant and equipment	14		22,262
Retirement benefit assets			49,229	49,229
Deferred Tax Assets			-	-
Total non-current assets
		82,625	71,491
Current assets
Inventories	5		254,048	372,820
Trade and other receivables	6		2,717,399	3,307,591
Prepayments	7		41,759	330,948
Financial Derivatives			-	-
Cash and Cash equivalents	8		1,247,764	227,233
Current Tax Receivable
Total current assets
		4,260,970	4,238,592
Total assets			4,343,596	4,310,084
Equity and Liabilities
Share capital			54,000	54,000
Retained earnings			(3,206,195)	(1,812,902)
Other reserves			(86,260)	(86,260)
Total equity			(3,238,455)	(1,845,162)
Non-current liabilities
Trade and other payables			2,583,097	2,583,097
Deferred Tax Liability			-	-
Total non-current liabities
		2,583,097	2,583,097
Current liabilities			4,680,041	3,292,927
Trade and other payables	9
Contract Liability	11		318,912	262,864
Current Tax Liability	10		-	16,358
Total current liabilities
		4,998,953	3,572,149
Total liabilities
		7,582,050	6,155,246
Total Equities and Liabilities			4,343,595	4,310,084

Approved by the Directors on 25th October 2023 and signed on its behalf by:

Otunba Adekunle Ojora OFR, CON, FNIM, JP	Mr Chuwueke Onyekachi Caleb FCA
Chairman	Director/CFO
FRC/2013/IODN/00000002581	FRC/2015/ICAN/000000/13361

NCR (NIGERIA) PLC

UNAUDITED CONDENSED STATEMENT OF CHANGES IN EQUITY

AS AT 30 SEPTEMBER 2023

Equity attributable to equity holders of the Company

		Share Capital	Retained	Other	Total Equity
			Earnings	Reserves
		N'000	N'000	N'000	N'000
Balance at 1 January 2023	54,000	(1,812,902)	(86,260)	(1,845,162)
Total comprehensive income for the period	-	(1,393,293)		(1,393,293)
Issue	of
Dividends
Transfer	for
Balance at 30 SEPTEMBER 2023	-	-		-
54,000	(3,206,195)	(86,260)	(3,238,455)
		Share Capital	Retained	Other	Total Equity
			Earnings	Reserves
		N'000	N'000	N'000	N'000
Balance at 1 January 2022	54,000	(802,377)	(90,477)	(838,854)
					-
Loss for the year		(1,010,525)		(1,010,525)
Other comprehensive loss for the year, net of tax	-		4,217	4,217
Total comprehensive loss for the year, net of tax		(1,010,525)	4,217	(1,006,308)
		-	-		-
Balance at 31 December 2022	54,000	(1,812,902)	(86,260)	(1,845,162)

NCR (NIGERIA) PLC

UNAUDITED STATEMENT OF CASH FLOW

AS AT 30 SEPTEMBER 2023

	2023	2022
	N'000	N'000
Cash Flows From Operating Activities
Profit /(Loss) before tax	(1,393,293)	(801,907)
Adjustments:
Depreciation	9,798	18,066
Exchange Loss/(gain)	896,219	980,122
Interest income(gain)	(13,052)	(2,077)
Loss on assets disposal	-	3,696
Allowance and impairment loss	-	(66,505)
Operating Profit Before working capital changes	(500,328)	131,395
Working Capital Changes:
Changes in prepayment	289,189	(319,449)
Changes in inventory	118,772	50,263
Changes in trade and other receivables	590,192	(1,380,804)
Changes in trade and other payables	1,387,114	237,956
changes in contract liabilities	56,048	18,673
Changes in provision		(13,477)
	1,940,987	(1,275,443)
Tax paid	(16,358)	(216,920)
Net Cash Flows from Operating Activities
1,924,629	(1,492,363)
Cash Flows from Investing Activities
Acquisition of PPE	(20,932)	(3,176)
Interest income	13,052	2,077
Rental income	-	-
Net Cash flows from Investing activities	(7,879)	(1,099)
Cash Flows from Financing activities:
Interest expenses		-
Net Cash flows from Financing activities	-	-
Net Cash flows for the period
1,916,749	(1,493,462)
Cash and Cash equivalents as at 1 January 2023	227,233	2,700,818
Effects of exchange differences	(896,219)	(980,122)
Cash and Cash equivalents as at end of period
1,247,764	227,233

NCR (NIGERIA) PLC

PERIOD ENDED 30 SEPTEMBER 2023

Summary of significant policies

1.1 Revenue from contracts with customers

The Company is in the business of providing technology and services that help businesses connect, interact and transact with their customers. It provides innovative products which include, ATM (Automated Teller Machines), Retail Point of Sales terminals, Self Service Kiosks, Self-check-in/out systems and sale of computer consumables. These contracts are divided into three revenue streams namely:

• Financial Service Group - Revenue is derived from sale of equipment and other hardware devices such as ATMs
• World Customer Services- Revenue is derived from provision of hardware and software maintenance services.

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The Group has generally concluded that it is the principal in its revenue arrangements because it typically controls the goods or services before transferring them to the customer.

The Company has applied IFRS 15 practical expedient to a portfolio of contracts (or performance obligations) with similar characteristics since the Company reasonably expect that the accounting result will not be materially different from the result of applying the standard to the individual contracts. The Company has been able to take a reasonable approach to determine the portfolios that would be representative of its types of customers and business lines. This has been used to categorised the different revenue stream detailed below.

Sale of equipment and other hardware devices

Revenue from sale of equipment and other hardware devices are recognised at the point in time when control of the asset is transferred to the customer, generally on delivery of the equipment/devices. The normal credit term is 30 to 90 days upon delivery.

The Company considers whether there are other promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be allocated (e.g., warranties). In determining the transaction price for the sale of hardware, the Company considers the effects of variable consideration, the existence of significant financing components, noncash consideration, and consideration payable to the customer (if any).

1.2 Cost of sales

The cost of sales include purchase cost of merchandise and directly attributable overheads.

1.3 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Area Controllers.

1.4 Dividend income from investment

Dividend income from investment is recognised when the shareholder's right to receive payment has been established (provided that it is probable that economic benefits will flow to the company and the amount of income can be measured reliably).

1.5 Foreign currencies

The financial statements of NCR Nigeria Plc are presented in Naira, which is the company's functional currency. In preparing the financial statements, transactions in currencies other than the company's functional currency (foreign currencies) are recorded at the rates of exchange prevailing on the dates of the transactions.

foreign currencies are translated at the rates prevailing at the date when the fair value was determined. Any resulting exchange differences are included in the statement of profit or loss and other comprehensive income, except for differences on available-for-salenon-monetary financial assets, which are included in the available-for-sale reserve in other comprehensive income.

Non-monetary items measured in terms of historical cost that are denominated in foreign currencies are translated using the exchange rate at the date of the transaction.

Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

1.6 Taxation

The tax expense represents the sum of the tax currently payable.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the statement of profit or loss and other comprehensive income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting date.

Deferred tax

Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

date. Deferred tax is charged or credited in profit or loss, except when it relates to items charged or credited in other comprehensive income, in which case the deferred tax is also dealt with in other comprehensive income.

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 they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.

1.7 Earnings per share

Earnings per share are calculated by dividing loss/profit for the year by the number of ordinary shares outstanding during the period. Diluted earnings per share are calculated by dividing profit for the year by the fully-diluted number of ordinary shares outstanding during the period.

1.8 Property plant and equipment

Items of property, plant and equipment are stated at cost less accumulated depreciation and any impairment losses.

Properties in the course of construction for production, supply or administrative purposes, or for purposes not yet determined, are carried at cost, less any recognized impairment loss. Cost includes professional fees and, for qualifying assets, borrowing costs capitalized in accordance with the company's accounting policy. Depreciation is not charged on these assets until the assets are available for their intended use.

Depreciation is charged to profit or loss using the straight-line method so as to write off the cost to their residual values over their estimated useful lives on the following bases:

Class of assets	Estimated useful lives(years)
Furniture and fittings	5
Computers	4
Plant Machinery and equipment	5

Land is not depreciated. The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amounts.

The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss.

Expenses on repairs and maintenance for instance day to day service cost and ongoing maintenance cost are recognized in profit or loss immediately. Major repairs and overhaul costs are capitalized if it will result in future economic benefits.

1.9 Inventories

Inventory is stated at the lower of cost and net realizable value using the First-In-First-Out (FIFO) Method. Net realizable value represents the estimated selling price for inventories less estimated cost to make the sale. Write down of inventory risk is undertaken to an appropriate and adequate extent.

1.10 Trade and other receivables

Trade receivables are carried at amortised cost less allowance for impairment losses.

Invoices are due for payment as soon as they are raised except when customers are pre-billed or allowed an extended credit period. No interest is charged on the overdue receivables. The company has recognised a provision for expected credit loss of 100% against all receivables over 360 days because historical experience has been that receivables that are past due beyond 360 days are not likely to be recoverable. When trade receivable, or the oldest portion of an installment or sales receivable, has been due for 450 days (15 months); it is assumed to be uncollectible and the entire receivable is written off.

Before accepting any new customer, the Company uses an internal credit scoring system to assess the potential customer's credit quality and defines credit limits by customer. Credit limits are reviewed periodically by the Financial Controller.

Provision for expected credit losses

Provisions are made for credit losses on all receivables in order to reduce the Company's financial exposure to any losses on bad debts. There are no trade receivables which are past due at the reporting date against which an allowance has not been made. Allowance for credit losses are reversed if all amounts are recovered. The impairment recognized represents the difference between the carrying amount of these trade receivables and the amounts that are deemed recoverable by the Company. The company does not hold any collateral or other credit enhancements over these balances nor does it have a legal right of offset against any amounts owed by the Company to the counterparty.

In determining the recoverability of a trade receivable, the Company considers any change in the credit quality of the trade receivable from the date credit was initially granted up to the reporting date.

NCR Nigeria Plc

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS For the period ended 30 September 2023

1. Legal Form
   NCR (Nigeria) Plc is incorporated in Nigeria under the companies and Allied Matters Act CAP C20 Laws of the federation of Nigeria, 2004 as a public Limited Liability company , and is domiciled in Nigeria.
2. Principal Activities
   NCR (Nigeria) Plc provides technology and services that help business connect, interact and transact with their customers. The company is a technology company that provides innovative products and services to help business build stronger relationships with their customers, through our presence at customer interaction points such as Automated Teller Machines (ATM), Interactive Teller Machine (ITM), Retail Point of Sales (POS), Workstations, Self Service Kiosk, Self check-in/out systems and DVD Kiosks.
3. Compliance with applicable Law and IFRS
   The condensed financial statements have been prepared in accordance with International Accounting Standards 34 (IAS34) and do not include all of the information required for full annual financial statements.
   These are the companies IFRS condensed interim financial statements for the period -
   ---
4. Composition of financial statements
   The financial statements are drawn up in naira, the functional currency of NCR Nigeria Plc, and in accordance with IFRS accounting presentation. The financial statements comprise:
5. 1. a condensed statement of financial position;
   2. a condensed statement or condensed statements of profit or loss and other comprehensive income;
   3. a condensed statement of changes in equity;
   4. selected explanatory notes.

NCR Nigeria Plc

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS For the period ended 30 SEPTEMBER 2023

20232022

N'000N'000

3.1.1 Revenue

	Financial Service group		1,520,491	691,021
	World Customer Services		922,950	1,048,220
			2,443,441	1,739,241
3.1.2	Disaggregated revenue information
		September 30, 2023
	Goods or Services	Financial service group	World customer services	Total
		N'000	N'000	N'000
	Sale of equipment	1,183,519		1,183,519
	Sale of software	143,192		143,192
	PS Consulting	82,358		82,358
	Installation/Implementation Services	111,421		111,421
	Maintenance/ Support Services		922,950	922,950
	Total Revenue From Contracts	1,520,491	922,950	2,443,441
		September 30, 2022
	Goods or Services	Financial service group	World customer services	Total
		N'000	N'000	N'000
	Sale of equipment	446,364		446,364
	Sale of software	34,269		34,269
	PS Consulting	92,582		92,582
	Installation Services	35,779		35,779
	Implementation services	82,027		82,027
	Maintenance/ Support Services		1,048,220	1,048,220
	Total Revenue From Contracts	691,021	1,048,220	1,739,241
		2023	2022
3.2	Cost of Sales	N'000	N'000
	Allowance for slow moving inventories	-	-
	Depreciation	9,798	4,180
	Direct Cost	2,124,085	1,307,090
	Salaries and Wages	748,607	518,728
		2,882,490	1,829,998

NCR Nigeria Plc

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the period ended 30 SEPTEMBER 2023

4 Other Income

	30/09/2023	30/09/2022
	N'000	N'000
Other Income	-	116
Interest Income	13,052	1,945
Provision no longer required	-	-
Debt Forgiveness	-	-
	13,052	2,061

5 Inventories

		30/09/2023	31/12/2022
		N'000	N'000
	Finished Equipment	(10,870)	38,231
	Service Parts (Reworkable)	466,182	485,799
	Service Parts (Non-Reworkable)	37,966	42,071
		493,277	566,101
5a	Allowance for slow moving inventory
	Service parts (reworkable)	(215,026)	(167,418)
	Service parts (non-reworkable)	(24,203)	(25,809)
	Finished Equipment	-	-
		(239,229)	(193,227)