TIDMDXSP
DXS INTERNATIONAL PLC
(AQSE: DXSP)
ANNUAL RESULTS
for the year ended 30 April 2023
The Board of DXS International plc ("the Company"), the AQSE
Growth Market quoted healthcare information and digital clinical
decision support systems provider, is pleased to announce its
audited Final Results for the year ended 30 April 2023.
Financial highlights:
-- Revenue increased by 3% to GBP3,391,219 (2022: GBP3,285,050).
-- Core recurring revenue model continues to be resilient.
-- Profit after tax of GBP225,191 compared to GBP222,250 in 2022, an
increase of 1%.
-- Cash at bank at the period end was GBP371,978 (2022: GBP452,379).
Operational highlights:
-- Successful trial of SMART Referral solution with a hospital fertility
clinic reducing referral rejections from 36% to 0% saving clinician
wasted time and reducing waiting list.
-- Hypertension medicines optimisation solution completed the NHS IM1
integration and compliance processes and has entered the formal
evaluation which is anticipated to complete in October 2023.
-- We have designed and implemented a free trial sales initiative for our
two key solutions.
-- SMART Referral solution which has been shown to reduce referral
rejections from 36% to 0% and cut waiting times by more than 50%.
-- Our hypertension medicines optimisation solution designed by UK
GPs to optimise the treatment of long-term conditions in
accordance with best evidence guidelines.
Both these solutions align with NHS aims and objectives.
Post-Period
Raised GBP500,000 in May from existing and new investors and
GBP130,000 from management and consultants (by way of salary and
fee conversion) to boost our sales and marketing efforts.
Management share options expired and will be replaced with a
suitable replacement scheme in due course.
Outlook
The pace of accessing the NHS market remains challenging,
primarily due to the inaccessibility of pressured NHS staff
struggling to deal with treatment backlogs, strikes, staff
shortages, restructuring and budget constraints. This adds elements
of uncertainty to the rate of our growth plans and while we believe
our sales and revenue targets to be highly achievable in the medium
term, the envisioned timeframe remains uncertain.
In light of this, the market expectation of GBP4.7m annual
revenue in the current financial year may no longer be achievable,
but the Company remains confident that it will be achieved in the
calendar year 2024.
David Immelman, Chief Executive of DXS, commented:
"Sales progress is proving to be frustratingly slow, however
there is no doubt that we have 'first of type' solutions that can
deliver significant results for healthcare providers and their
patients. We are continuing with our development of cutting edge
healthcare solutions focused on delivering improved health outcomes
more cost effectively in the UK and internationally. Accessing
healthcare markets present many hurdles, however equally as we
overcome each of these, we are acutely aware that our competition
faces similar challenges.
Our strategy is to remain super focused underpinned by the
conviction of ultimately delivering results to our stakeholders and
our shareholders."
The Directors of DXS International plc accept responsibility for
this announcement. This announcement contains information which,
prior to its disclosure, was inside information as stipulated under
Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations
2019/310 (as amended).
Contacts :
David Immelman 01252 719800
DXS International plc
www.dxs-systems.com
AQSE Corporate Broker
Hybridan LLP 020 3764 2341
Claire Louise Noyce
Corporate Advisor
City & Merchant 020 7101 7676
David Papworth
Notes to Editors
About DXS:
DXS International presents up to date treatment guidelines and
recommendations, from Clinical Commissioning Groups and other
trusted NHS sources, to doctors, nurses and pharmacists in their
workflow and during the patient consultation. This effective
clinical decision support ultimately translates to improved
healthcare outcomes delivered more cost effectively and which
should significantly contribute towards the NHS achieving its
projected efficiency savings.
The following information is extracted from the DXS
International plc audited accounts for the year ended 30 April
2023.
CHAIRMAN'S REPORT
The Board announce its results for the year ending 30(th) April
2023.
At April 2023, the turnover increased by 3% to GBP3,391,219
(2022: GBP3,285,050). Despite increased expenditure in research and
development, the Company produced a profit after tax of GBP225,191
compared to GBP222,250 in 2022, an increase of 1%. Cash at bank at
the period end was GBP371,978 (2022: GBP452,379).
The year continued to present significant challenges accessing
our target market. NHS staff are currently focused on dealing with
backlogs and the NHS restructuring which is ongoing. However, again
our recurring revenue model proved to be resilient enabling a
modest revenue increase of 3%.
The UK currently remains our sole source of revenue being split
between the NHS and the pharmaceutical industry. Despite these
disruptions, we have been able to begin engaging with prospective
customers regarding new sales opportunities, particularly for our
new SMART Referral and Hypertension solutions.
Our successful Fertility Clinic Referral Study continues
delivering significant results with referral rejection rates now
down from 36% to 0% and waiting times down by 55%. These positive
outcomes have initiated a collaboration with an Academic Health
Science Network to formally evaluate the outcomes of our SMART
referrals in Cancer and ENT settings. The NHS is now demanding
evidence before investing. Another key revenue opportunity is
delivering metadata with each referral form which can be imported
into hospital systems improving workflow and operational
efficiencies.
Our hypertension medicines optimisation solution has now entered
an important National Institute of Health Research (NIHR) funded
evaluation phase after completing the NHS IM1 integration and
compliance certification processes. The evaluation is formally
being evaluated by the Eastern Academic Health Science Networks CVD
and Evaluation Team. This report is expected to be completed by
October 2023 and will provide formal evidence of how the ExpertCare
hypertension solution will improve hypertension treatment in
accordance with NICE guidelines as well as shift workloads from GPs
to more junior Pharmacists and Nurses as well as cutting reviewing
times.
To fund our sales and marketing efforts for SMART Referrals,
SMART Pathways and the ExpertCare hypertension solutions, we have
recently raised GBP500,000 from existing and new investors.
Development of our new cloud version of our DXS Point of Care
solution continues and we hope to release the first version by
November 2023.
While accessing healthcare markets remains a painfully slow
process, we are more resolute than ever that our decision to invest
in SMART intelligent digital solutions is correct. Ongoing
statements by politicians, patient bodies, clinician groups,
academic institutions and the media continually reinforce the
current state of healthcare delivery in the UK. Prime Minister
Rishi Sunak said: "Cutting waiting lists is one of my top five
priorities".
Recent government announcements have emphasised the importance
of controlling blood pressure. High blood pressure (hypertension)
places a considerable burden on the NHS, where it is responsible
for 12% of all visits to GPs with an estimated annual cost to the
NHS of over GBP2 billion. The 2023/24 NHS Priorities and
Operational Planning Guidance reconfirmed the ongoing need to
improve productivity, make progress in delivering the key NHS Long
Term Plan ambitions and continue to transform the NHS for the
future. This included increasing the percentage of patients with
hypertension treated to NICE guidance to 77% by March 2024. The
ExpertCare hypertension solution is the ideal product to support
this drive in a timely, cost-effective manner.
The enthusiastic reception that our new products are receiving
from clinicians confirms that our strategy for managing referrals
and hypertension with our SMART digital solutions are aligned with
the NHS' stated objectives and underpinned by a competent,
enthusiastic, and committed team. This commitment was demonstrated
by key management's commitment to taking reduced drawings as well
as converting unpaid remuneration of GBP130,628 to equity.
REPORT OF THE DIRECTORS
The directors present their annual report and the audited
financial statements for the year ended 30 April 2023. The
Chairman's statement which is included in this report includes a
review of the achievements of the Company, the trading performance,
financial position, and trading prospects.
DIRECTORS
The directors for the year were:
-- Bob Sutcliffe -- Chairman
-- David Immelman -- CEO
-- Steven Bauer -- COO
PRINCIPAL ACTIVITIES
The group's principal activities during the period were the
development and distribution of clinical decision support to
General Practitioners, Nurses, and Retail Pharmacies in the United
Kingdom. The commercial side included the licensing of DXS to
various Clinical Commissioning Groups (CCGs) and the sale of
e-detailing opportunities to the Pharmaceutical Industry.
The group continues to invest in research and development both
locally and internationally and during this financial year has
invested GBP1,380,617 into R&D for the introduction,
continuation, and completion of a number of new DXS solutions.
These are targeted at providing clinicians and with solutions to
improve referring and the therapeutic management of long-term
conditions. These products are aligned with the NHS strategy of
Digital First and Empowering the Wider Workforce.
During the period we have borrowed GBP750,000 and repaid
GBP268,792 on bank and third-party loans.
FINANCIAL INSTRUMENTS
The Directors believe that there is no material risk arising in
respect of interest rates on loans, credit, and liquidity.
DIVID
The Directors do not recommend a dividend.
DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the financial
statements for each financial year. The directors have elected to
prepare the financial statements in accordance with United Kingdom
Generally Accepted Accounting Practice (United Kingdom Accounting
Standards and applicable law). Under company law the directors must
not approve the financial statements unless they are satisfied that
they give a true and fair view of the state of affairs of the
Company and of the profit or loss of the Group for that period. In
preparing these financial statements, the directors are required
to:
-- Select suitable accounting policies and apply them consistently.
-- Make judgments and accounting estimates that are reasonable and prudent.
-- State whether UK accounting principles have been followed subject to any
material departures disclosed and explained in the financial statements
and,
-- Prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the Group and Company will continue in the
business.
The directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Company's
transactions and disclose with reasonable accuracy at any time the
financial position of the Company and enable them to ensure that
the financial statements comply with the Companies Act 2006. They
are also responsible for safeguarding the assets of the Company and
hence for taking reasonable steps for the prevention and detection
of fraud and other irregularities.
DIRECTORS' RESPONSIBILITIES TO AUDITORS
The directors have taken all the necessary steps that they ought
to have taken as directors in order to make themselves aware of all
relevant audit information and to establish that the Company's
auditors are aware of that information.
As far as the directors are aware, there is no relevant audit
information of which the Company's auditor is unaware.
Approved by the board and signed on its behalf by:
D A Immelman
Director
21(st) July 2023
STRATEGIC REPORT
SECTION 172 REPORT
Section 172 of the Companies Act requires that a director of the
Company is managing in the best interests of all stakeholders --
Customers, Employees and Shareholders.
In the spirit of above, the Directors of DXS International plc,
strive to maintain a reputation for high but fair standards in the
best interest of its stakeholders.
Our primary focus is on our customers and here we regard our
relationships and channels of communications of paramount
importance. We operate in a sensitive environment, healthcare, and
as such ensure that we meet all the standards required by our
customers, such as Information Governance and Clinical Safety. In
addition, we comply with ISO standards which assures an overarching
good governance approach to all operations.
The Board is focused on delivering value for Shareholders
underpinned by motivated Employees delivering above average
delivery of solutions and service to Customers. In achieving the
foregoing, the Company focuses on continued innovation via a policy
of research and development funded through organic investment plus
capital raises, as agreed at shareholder meetings, noting it has
not as a Company raised any external equity financing in the year
to April 2023, and supported by clearly communicated vision and
direction.
In our communication to Shareholders the Board is clear in terms
of its short, medium, and long-term strategy and maintains an
open-door approach to Shareholders seeking additional clarity on
any issue. The Board releases notices on a regular basis informing
Shareholders of developments in areas of business progress,
non-confidential strategic decisions, and any change to company
policy. Risks and opportunities are set out in this strategic
review.
The Group is small and while clear management structures are in
place all employees, if required, have direct access to the
Executive Directors on a daily basis and, if necessary, to the
Chairman. The group retains HR services to ensure the fair and
equitable treatment of employees. The Company promotes a policy of
promoting from within supported by training and mentorship. We
encourage diverse thinking and recognise strengths and contribution
to the business.
REVIEW OF THE GROUPS BUSINESS
The Group Profit after Tax is GBP225,191 (2022 - GBP222,250).
The Operating (Loss) amounts to (GBP42,653) (2022 (GBP57,776)).
There was an increase in amortisation of GBP91,098 to GBP660,645.
The Group has a credit of GBP322,897 for UK Corporation Tax (2022
credit- GBP320,985) for the year.
The profit after tax for the year increased by GBP2,941 after a
significant investment into R&D of GBP1,380,617. Revenue
remained robust with an increase of GBP106,169 in revenue. As an
accredited NHS solutions provider, DXS has well-established
business continuity and disaster recovery protocols in place.
We have continued the development of our new Aios cloud-based
system. In addition, we completed our IM1 integration for EMIS
which has now been NHS accredited and a NIHR funded trial for our
ExpertCare hypertension solution is underway.
Although the NHS remains notoriously slow in adopting new
technology, our sustained efforts are seeing gained awareness of
our new SMART referral and Hypertension solution which we believe
will begin generating revenue in the new financial year.
Our strategy remains aligned with both the new NHS Long Term
Plan and opportunities abroad.
PRINCIPAL RISKS AND UNCERTAINTIES
The principal risk to the Company in the UK is that the NHS
dramatically changes its plans or cuts its budgets. This seems
unlikely, particularly with the current the NHS' stated objective
for clinicians to operate using digital technologies with which our
new Aios and ExpertCare solutions are aligned.
Failure to achieve predicted quantities of DXS contracts, and
slower development of additional revenue streams may result in
revenues growing more slowly than anticipated. These may be
mitigated due to the launch of market ready new products as the
current situation normalises.
Our plans for expansion outside of the UK mitigate this risk.
Here we continue with our research and development plans to take
our new Expert Hypertension solution into international markets
where improved management of Hypertension and other long-term
conditions are a top priority.
ANALYSIS OF BUSINESS DURING YEARING APRIL 2023
Revenue was marginally in line with market expectations,
increasing by GBP106,169 while Profit after tax increased by
GBP2,941.
FINANCIAL METRICS
-- Group Revenue of GBP3,391,219 has increased by 3%. Definition: Total
Group sales including distribution of clinical decision support to
General Practitioners and the licensing of DXS to CCGs and healthcare
publishers. Group Revenue includes the sale of medicine education slots
to the pharmaceutical industry.
-- Underlying Group Profit after Tax was GBP225,191, a 1% increase. This was
mainly due to increased investment of development. Definition: Underlying
profit provides information on the underlying performance of the
business.
-- Depreciation and amortisation of deferred Research and Development
expenditure and Goodwill in 2023 was GBP704,091 and in 2022 was
GBP659,247.
-- Earnings Per Share 2023 0.5p, 2022 0.5p. Definition: Earnings per share
is the underlying profit divided by the weighted average number of
ordinary shares in issue.
-- ROE 2023 5%, 2022 5%. Definition: Return on Equity (ROE) is the ratio of
net profit of a company to its shareholders funds. It measures the
profitability of a company by expressing its net profit as a percentage
of its shareholders funds which include share capital, share premium,
provision for costs of share option awards and retained earnings.
CORPORATE GOVERNANCE
We are committed to establish, maintain, and continually improve
an Integrated Management System (IMS) that conforms to relevant ISO
requirements.
To achieve this objective, we commit to:
-- continual improvement in our performance and services to our
stakeholders.
-- Identify, assess, reduce, and eliminate hazards and risks pertaining to
our business.
-- Set risk-based objectives and targets to meet applicable statutory,
business, information security and service level obligations.
-- Comply with mutually agreed quality and service level requirements of our
customers.
-- Develop our people and provide sufficient resources to meet our
objectives and targets.
We communicate the IMS Policy to all personnel working for or on
behalf of DXS to ensure that they are made aware of their
individual IMS obligations.
Approved by the board and signed on its behalf by:
D Immelman
Director
21(st) July 2023
FINANCIAL STATEMENTS
INCOME STATEMENT
Year ended 30 April 2023
2023 2022
Continuing Operations Continuing Operations
GBP GBP
Turnover 3,391,219 3,285,050
Cost of Sales (466,722) (412,904)
_________ _________
Gross Profit 2,924,497 2,872,146
Administration Costs (2,261,897) (2,269,633)
Depreciation and Amortisation (705,253) (660,289)
_________ _________
Operating profit (42,653) (57,776)
Sundry income 5 2,153
_________ _________
(42,648) (55,623)
Interest payable and similar
expenses (55,058) (43,022)
_________ _________
Loss on ordinary activities
before taxation (97,706) (98,645)
Tax on ordinary activities 322,897 320,895
_________ _________
Profit for the year 225,191 222,250
========= =========
Profit per share
0.5p 0.5p
-- basic
0.5p 0.5p
-- fully diluted
========= =========
Statement of Other Comprehensive Income
Year ended 30 April 2023
2023 2022
GBP GBP
Profit for the year 225,191 222,250
Other comprehensive income - -
Tax on components of other comprehensive
income - -
_________ _________
Total comprehensive income for
the year 225,191 222,250
========= =========
Statement of Financial Position
Year ended 30 April 2023
Company Company
Group 2023 Group 2022 2023 2022
GBP GBP GBP
Fixed Assets
Intangible Assets 5,860,209 5,183,683 - -
Tangible Assets 1,222 2,645 - -
Investments - 3,486,478 2,815,831
_________ _________ _________ _________
5,861,331 5,186,328 3,486,478 2,815,831
_________ _________ _________ _________
Current assets
Debtors: amounts falling due
within one year 791,321 693,702 18,393 32,762
Cash at bank and in hand 371,978 452,379 200,929 195,800
_________ _________ _________ _________
1,163,299 1,146,081 219,322 228,562
Creditors: amounts falling due
within one year (865,475) (889,761) (239,518) (50,478)
_________ _________ _________ _________
Net current assets 297,824 256,320 (20,196) 178,084
_________ _________ _________ _________
Total assets less current
liabilities 6,159,155 5,442,648 3,466,282 2,993,915
Creditors:
Amounts falling due after more
than one year (720,446) (331,330) (470,042)- -
Deferred income (848,876) (746,676) - -
_________ _________ _________ _________
4,589,833 4,364,642 2,996,240 2,993,915
========= ========= ========= =========
Capital and reserves
Called up share capital 159,246 159,246 159,246 159,246
Share Premium 2,671,321 2,671,321 2,671,321 2,671,321
Share option reserve 21,382 173,808 21,382 173,808
Retained earnings 1,737,884 1,360,267 1,737,884 (10,460)
_________ _________ _________ _________
Shareholders' funds 4,589,833 4,364,642 2,996,240 2,993,915
========= ========= ========= =========
As permitted by Section 408 of the Companies Act 2006, the
Income Statement of the parent company is not presented as part of
these financial statements. The Company made a profit of GBP2,325
(2022 - GBP2,395) for the year.
The financial statements were approved and authorized for issue
by the Board on 21(st) July 2023.
Signed on behalf of the Board of directors
D Immelman R Sutciffe
Director Director
Company Registration number : 06311313
STATEMENT OF CASH FLOWS
Year ended 30 April 2023
Group Group
2023 2022
GBP GBP
Cash flow from operating activities 549,8083 907,862
Interest paid (55,058) (43,022)
Sundry Income 5 2,153
R&D tax credit received 323,897 249,895
_________ _________
Net cash flow from operating activities 818,647 1,116,888
_________ _________
Cash flow from investing activities - -
Payments to acquire intangible fixed
assets (1,380,617) (1,284,961)
Payments to acquire tangible fixed
assets 361 (2,354)
_________ _________
(1,380,256) (1,287,315)
_________ _________
Financing Activities -
Expense in respect of share issue
in February 2020 - (5,000)
Repayment of long term loans (268,792) (164,512)
Advance of long term loans 750,000 -
_________ _________
481,208 (169,512)
_________ _________
Net (decrease) in cash and cash
equivalents (80,401) (339,939)
Cash and Cash equivalents at 1 May
2021 452,379 792,318
_________ _________
Cash and Cash equivalents at 30
April 2022 371,978 452,379
========= =========
Cash and Cash equivalents consists
of:
Cash at bank and in hand 371,978 452,379
========= =========
Current Non Current
Net Debt Reconciliation Debt Debt Cash Total
GBP GBP GBP GBP
At 30 April 2021 (207,139) (449,125) 792,318 136,054
Cash Flow (85,993) 117,795 (339,939) (308,137)
_________ _________ ________ _________
At 30 April 2022 (293,132) (331,330) 452,379 (172,083)
Non -- cash flow - (389,116) - (389,116)
Cash Flow (20,354) - (80,401) (100,755)
_________ _________ ________ _________
At 30 April 2023 (313,486) (720,446) 371,978 (661,954)
========= ========= ========= =========
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
Year ended 30 April 2023
1 Summary of significant accounting policies
(a) General information and basis of preparation.
DXS International PLC is a public company limited by shares
incorporated in England and Wales. The address of the registered
office is given in the company information on Page 1 of these
financial statements.
The group's principal activities during the year were the
development and distribution of clinical decision support to
General Practitioners, Nurses and Retail Pharmacies in the United
Kingdom and South Africa. The commercial side includes the
licensing of DXS products to various CCG's (Central Commissioning
Groups), the sale of e- detailing opportunities to the
pharmaceutical industry, the UK Primary Care sector and the
licencing of DXS technology to healthcare publishers.
The financial statements have been prepared in accordance with
applicable accounting standards including Financial Reporting
Standard 102 Applicable in the UK and Republic of Ireland (FRS 102)
and the Companies Act 2006. The financial statements have been
prepared on a going concern basis under the historical cost
convention. The financial statements are prepared in sterling which
is the functional currency of the company.
In the opinion of the Directors the group has sufficient funding
to continue as a going concern for at least twelve months from the
date of approval of the financial statements.
Should the group be unable to continue trading, adjustments
would have to be made to reduce the value of assets to their
recoverable amounts and to provide for any further liabilities that
might arise. The financial statements do not reflect any such
adjustments.
The significant accounting policies applied in the preparation
of these financial statements are set out below. These policies
have been consistently applied to all years presented unless
otherwise stated.
(b) Intangible assets
Intangible assets acquired separately from a business are
capitalised at cost.
Research and development expenditure, other than specific
identifiable development expenditure, is written off against
profits in the year in which it is incurred.
Identifiable development expenditure is capitalised to the
extent that the technical, commercial and financial feasibility can
be demonstrated. Developed products are for use within the NHS and
other medical institutions within both the UK and internationally.
The Group is already a supplier of services to the NHS.
Goodwill arising on business combinations is capitalised,
classed as an asset on the balance sheet and amortised over its
useful life. The period originally chosen for writing off the
current goodwill was 20 years because the directors believed that
this was the period of time for the benefit to be received. The
Directors reviewed the anticipated future life of the goodwill
during 2020. It was considered that the anticipated future life of
the goodwill would not exceed 3 years from 1 May 2020. Accordingly
the Net Book Value of the goodwill at 30 April 2020 was amortised
over 3 years.
Intangible assets are amortised over a straight line basis over
their useful lives. The useful lives of intangible assets are as
follows:
Intangible type Useful life Reasons
--------------------- --------------------------- --------------------------
Development 5 years from the date Period of time for benefit
expenditure that the specific product to be received.
is completed and available
for distribution.
--------------------- --------------------------- --------------------------
Provision is made for any impairment.
(c) Tangible fixed assets
The company capitalises items purchased as Tangible Fixed Assets
which have a cost in excess of GBP550.
Tangible fixed assets are stated at cost less accumulated
depreciation.
Depreciation is provided on all tangible fixed assets at rates
calculated to write off the cost , less estimated residual value,
of each asset on a systematic basis over its expected useful life
as follows:
Plant and equipment 3-4 years straight line
(d) Debtors and creditors receivable/ payable within one year
Debtors and creditors with no stated interest rate and
receivable or payable within one year are recorded at transaction
price. Any losses arising from impairment are recognised in the
profit and loss account in other administration expenses.
(e) Loans and borrowings
Loans and borrowings are initially recognised at the transaction
price including transaction costs. Subsequently they are measured
at amortised cost using an effective interest rate method. If an
arrangement constitutes a finance transaction it is measured at
present value.
(f) Grants
Government Grants, including non - monetary grants, shall not be
recognised until there is reasonable assurance that :
(a) the entity will comply with the conditions attached to them;
and
(b) the grants will be received.
An entity shall recognise grants either based on the performance
model or the accrual model. This policy choice shall be applied on
a class-by-class basis.
(g) Tax
Current tax represents the amount of tax payable or receivable
in respect of the taxable profit for the current or past reporting
periods. It is measured at the amount expected to be paid or
recovered using the tax rates and laws that have been enacted or
substantively enacted by the reporting date.
(h) Turnover and other income
Turnover is measured at the fair value of the consideration
received or receivable net of VAT and trade discounts. The policy
adopted for the recognition of turnover is as follows:
Sale of services and products
Turnover is from the sale of products and services to the
pharmaceutical industry and the UK Primary Care sector and is
recognised over the term of service contract and is apportioned on
a time basis representing the delivery of the service.
(i) Foreign currency
Foreign currency transactions are initially recognised by
applying to the foreign currency amount the exchange rate between
the functional currency and the foreign currency at the date of the
transaction.
Monetary assets and liabilities denominated in a foreign
currency at the balance sheet date are translated using the closing
rate.
Foreign exchange gains or losses are recognised in the Income
Statement.
(j) Employee benefits
When employees have rendered service to the company, short term
employee benefits to which the employees are entitled are
recognised at the undiscounted amount expected to be paid in
exchange for that service.
The company operates a defined contribution plan for the benefit
of its employees. Contributions are expensed as they become
payable.
(k) Leases
Rentals payable under operating leases are charged to the income
statement on a straight line basis over the period of the
lease.
(l) Share option policy
The company recognised as an expense, the fair value of share
options granted over their vesting period. The fair value is
calculated by applying an option pricing model.
(m) Key judgements and Key accounting estimates
The Key judgements or Key Accounting estimates with a material
effect on the carrying value of assets and liabilities are set out
below -.
In regards to the going concern of the company, the directors
have considered cash flow forecasts for the period to April 2025
which include estimates to be earned from the new Aios and
Expertcare A1 solutions which are expected to be revenue generating
from late 2023. Also included are increased costs which, if
forecasted sales are slower than anticipated, can be reduced
accordingly. In addition the company has issued shares to the value
of GBP500,000, before expenses, since the year end.
Given the additional funds received and the market potential for
the new products, supported by trial results, the directors
consider it appropriate to adopt the going concern basis of
accounting and are satisfied that there is no material
uncertainty.
The Research and Development tax credit received from HMRC is
not a Government grant but a recognition of the costs incurred in
respect of the company's research and development and is received
through an adjustment to the taxable income of the company.
The Group has used a level of judgement around key assumptions
on the technical feasibility of products under development, the
consideration of the estimated useful lives of these products and a
degree of estimate in respect of the capitalised attributable cost
including the estimated amount of time charged by employees.
(n) Reduced disclosure
DXS International PLC meets the definition of a qualifying
entity under FRS 102 paragraph 1.12(b) and has therefore taken
advantage of the disclosure exemption in relation to the parent
cash flow statement.
(END) Dow Jones Newswires
July 25, 2023 02:00 ET (06:00 GMT)
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