TIDMAOM
RNS Number : 5211T
ActiveOps PLC
25 November 2021
25 November 2021
ActiveOps plc
(ActiveOps, 'the Company', 'the Group')
Interim results for the six months ended 30 September 2021
ActiveOps plc (AIM: AOM), a leading provider of Management
Process Automation (MPA) software for running complex and global
back-offices, is pleased to announce its unaudited results for the
six months ended 30 September 2021.
Financial Highlights:
Six months ended 30 September 2021 2020 Change
-------------------------------------------------- ---------- ---------- -------
Annual recurring revenue "ARR"
(1) GBP19.8 GBP17.1 +16%
Revenue
Software and Subscription revenue GBP9.6m GBP8.6m +12%
Training & implementation "T&I"
revenue GBP1.9m GBP0.8m +137%
Total Revenue GBP11.5m GBP9.4m +22%
Gross margin GBP9.2m GBP7.6m +21%
Adjusted EBITDA(2) (GBP0.2m) GBP0.1m (300%)
Profit/(loss) before tax - continuing
operations (GBP1.0m) (GBP0.6m) (67%)
Earnings per share on continuing
operations (1.40p) (1.19p) (18%)
Profit from discontinued operations GBP0.0m GBP1.3m na
net of tax
Statutory profit /(loss) for the
p eriod (GBP1.0m) GBP0.6m (267%)
Net cash and cash equivalents GBP10.9m GBP1.2m +808%
-- Net Revenue Retention(3) at 110% on a 12 monthly basis,
following customer upgrades for both ControliQ and WorkiQ
-- 137% growth in Training & Implementation (T&I) revenues
following slow H1 FY21 due to the impact of Covid-19
-- Adjusted EBITDA loss of GBP0.2m slightly ahead of management
expectations despite increased investment with operating
costs increasing GBP2.0m over the same period in FY21 across
sales, relationship management and R&D, with further investment
planned for H2.
-- Strong balance sheet with net cash position of GBP10.9m
at the period end.
1 Annual recurring revenue "ARR" at the end of the period, is a
non-statutory measure
2 Adjusted EBITDA is earnings before interest, tax, depreciation
and amortisation, share based payments and IPO costs.
3 Net Revenue Retention is the change in Annual Recurring
Revenue from existing customers at the beginning of the period
Strategic and Operational Highlights:
-- Added 5 new customer logos globally
-- Significant expansion sales in all key regions and targeted
industries
-- Strong renewals performance with customer retention levels
in line with management expectations and historical rates,
including three long term Australian banking customers extending
their renewal cycle from one to three years (one within
the period and two post period end)
-- US banking customer becomes first enterprise scale purchase
of WorkiQ by an existing ControliQ customer, providing confirmation
of the significant up-sell opportunities
-- Releases of significant upgrades to both WorkiQ and ControliQ,
including new features to further automate data collection
activities and to enable more effective capacity planning
for teams working in hybrid home/office situations
-- 60% increase in software development capacity
-- Creation of dedicated data science function to more rapidly
address the many opportunities to exploit Artificial Intelligence
within the product set
Outlook:
-- Continued positive trading in the second half of the year,
with a further new customer win, customer expansions and
investment in product development
-- Strong recovery of T&I revenue continues, supporting software
sales
-- Increased confidence in delivering a positive full year
performance, slightly ahead of Board expectations
Richard Jeffery, Chief Executive of ActiveOps, commented, "The
first six months of the year was a period of continued progress for
ActiveOps, as the demand for workforce management solutions
increases as a result of back-office operations becoming more
complex, more demanding, more regulated and more competitive. Our
strong financial performance has been driven by new customer wins
and expanded existing customer engagements. We have continued to
invest in our team and our offering to ensure we have the structure
and products to execute on our growth plans.
"Trading in the second half of the financial year has seen a
continuation of the momentum seen in the first half. We continue to
focus on our established strategy, maintain our position as thought
leaders and expand the scope of our Workware+ platform to support
our customers in simplifying the running of their operations.
"With strong market drivers, alongside a proven and expanding
proposition, we remain confident that we are well placed to deliver
on our growth ambitions and we are excited about our future
prospects."
For more information, please contact:
ActiveOps Via Alma PR
Richard Jeffery, Chief Executive www.activeops.com
Officer
Patrick Deller, Chief Financial Officer
Investec Bank plc +44 (0)20 7597 5970
Corporate Broking & PLC Advisory
Patrick Robb / David Anderson
Alma PR + 44(0) 203 405 0205
Caroline Forde / Sam Modlin / Faye
Calow
About ActiveOps
ActiveOps is a leader in Management Process Automation (MPA),
providing a SaaS platform to large enterprises with complex and
often global back-offices. The Group's software and embedded
back-office operations management methodology enables enterprises
to adopt a data-driven, scientific approach to organising work and
managing capacity.
The Group's enterprise platform comprises Workware+, its MPA
software platform, and AOM, the Group's operations methodology and
framework for effective back-office management. Together, this
combination of software and embedded methodology enables operations
managers to balance the competing priorities of meeting service and
quality standards while improving productivity and reducing
cost.
The Group serves its global customer base of approximately 80
enterprise customers from offices in the UK, Ireland, USA,
Australia, India and South Africa. The Group's customers are
predominantly in the banking, insurance and business process
outsourcing (BPO) sectors, including Nationwide, TD Bank, Anthem
Inc and DXC Technology.
Chief Executive's Report
I am delighted to report that we have continued to build on the
momentum of FY21, with a performance characterised by revenue
growth in-line with management expectations and adjusted EBITDA
slightly ahead of management expectations, evidencing the continued
success of the Group's Land and Expand growth strategy. We have
secured new logo wins or contract expansions across all target
regions and sectors, including the first enterprise level up-sale
of WorkiQ into an existing ControliQ customer and the signing of
three-year contract renewals by three major Australian banking
customers (one within the period and two post period end). Our
customer retention rates remain high as demand for workforce
management solutions continues to increase in response to the
global move towards hybrid working and the renewed focus on digital
transformation.
It was particularly pleasing to note a record sales performance
in EMEIA, one of the Group's key target regions. Whilst we remain
conscious of the ongoing global uncertainty caused by the pandemic,
our high levels of penetration across three geographic regions
stand us in good stead to continue our growth and to enable large
organisations to adapt to increasingly complex hybrid working
models.
We have continued to make good progress in delivering our
strategy with investment made in our product suite and our
capability. Hires across the Group's Technology, Product, Sales and
Customer Success teams will enable ActiveOps to continue to support
its growing, global customer base.
Positive financial performance
The continued positive financial performance of the Group is
underpinned by the strong fundamentals of our business model,
characterised by a highly scalable platform, delivering high gross
margins and strong cash generation.
We are pleased to report growth across all revenue metrics, with
a particularly strong return of Training & Implementation
revenues, up 137% following a softer H1 FY21 due to the impact of
Covid-19 lockdowns. The strength of the Group's recurring revenue
business model is evident in the strong growth in SaaS revenues,
reaching GBP9.6m (H1 FY21: GBP8.6m).
New customer wins coupled with expansions at existing customers
have seen Annual Recurring Revenue increase 16% to GBP19.8m in the
period, while recognised revenue increased 22% to GBP11.5m (H1
FY21: GBP9.4m).
In line with the growth strategy outlined at the time of IPO,
the Group increased investment in sales, marketing and technology
in the period, resulting in a loss before tax for the half of
GBP1.0m (H1 FY21: Loss GBP0.7m).
Supportive market environment
Following the global shift to working from home in FY21, the
first half of the year has seen significant further change as
businesses evolve towards future hybrid working practices. Many
organisations are still developing these future ways of working and
we see significant variation across the markets and industries we
serve. Much like the forced move to home-working, the migration to
a hybrid approach will be simpler and more secure for those
operations who benefit from the rich data and consistent,
digitally-enabled operations management processes provided by our
solutions.
Operational risk is a growing strategic issue for many
businesses, which are now functioning with leaner operations,
reducing the inherent contingency and therefore resilience within
teams and processes. To respond, organisations need greater control
over operations - better foresight and more precise, timely data on
production and capacity. Many organisations are finding that their
legacy management processes, which relied on the physical presence
and technical experience of managers, are constraining performance
and introducing significant risk. In addition, we are beginning to
see regulators requiring that organisations be able to demonstrate
the availability of adequate skills and capacity to maintain key
services. Our solutions ensure organisations can demonstrate these
requirements whilst still running as lean as possible.
The pandemic has also caused many organisations to re-double
their digital transformation efforts, with greater process
automation being the most significant focus within our operating
environment. Automation brings efficiency but also creates silos of
both data and resources within operations, meaning the full benefit
of automation deployment is often not delivered. Our Management
Process Automation solutions break down these silos and ensure
investments in process automation deliver their full potential.
In the short-term, procurement processes continue to be
protracted as a result of such a profound period of change and
uncertainty. However, the factors described above are increasing
the awareness of the need for better information and processes for
managing work and capacity. In addition, there is an increasing
awareness of the opportunity offered by technology such as the
Workware+ platform, to augment and automate these management
processes.
Just as we have seen issues arise in our cities as outdated
infrastructure struggles to cope with the demands of modern
inhabitants, existing management processes cannot support the
complexity of modern operations. ActiveOps' world-leading MPA
product suite and foundational methodology is designed to deliver
that control, addressing the challenges of back-office complexity
by collating and standardising disparate data, analysing and
presenting this data through a set of digital tools which automate
key management processes, enabling organisations to optimise their
operational performance.
Product enhancements and team expansion
In H1 FY22, in line with our strategy, we continued to increase
our investment in R&D and evolve our product offering,
increasing its attractiveness to our target customers and further
differentiating us from competitors. Developments in the period
include the launch of Collector, a component available to both
WorkiQ and ControliQ which uses task mining technology to automate
the enumeration of completed work, providing an accurate picture of
productivity whilst reducing the overhead of data collection. This
enhancement makes WorkiQ the only EPM solution to meaningfully
connect activity time tracking to completed work output.
Significant enhancements were also made to ControliQ in the period,
with the launch of a new functionality that enables businesses to
plan the optimal use of resources more easily in a hybrid work
environment.
We continued investment in our data science function to
accelerate our use of artificial intelligence (AI) and machine
learning (ML) techniques, which when paired with our existing
dataset present significant opportunities to further automate and
augment management decision making. Looking forward, we are
developing a new WorkiQ extension to meet the specific needs of
hybrid working in the US. This enhancement will include
functionality to help customers better manage their employees in
line with the challenging vaccine mandate legislation recently
introduced by the US Government.
H1 FY22 was a period of significant capability investment for
ActiveOps, with headcount growing by 17 team members, with a
particular focus on our engineering team, to support delivery of
our product roadmap. We have already seen the impact of our new
development hires on output and look forward to seeing the further
increases to pace of progress facilitated by our growing team.
Supporting our belief in the success of our solutions to
facilitate a successful hybrid working model, we are operating
effectively in hybrid mode ourselves, but with an increased
presence in our offices, in-line with local government and
healthcare advice. ActiveOps intends to retain a hybrid work
environment in the long-term, with no roles expected to be based
solely in-office. Some elements of office working will, however, be
factored into the operating model for all teams.
We reinstated our annual customer conference, our first fully
face-to-face UK event post-lockdown in October 2021, following
several successful hybrid events in the US earlier in the year.
Rewriting the Future of Operations brought together customers,
partners and industry commentators at the Dorchester Hotel, London
with speaker addresses from ActiveOps staff members, customer
representatives and industry analysts.
Growth of our customer base: Land & expand
Our new customer acquisition activity is focused on a tightly
defined set of banks, insurers and BPOs in our target geographies,
representing a significant Annual Recurring Revenue (ARR)
opportunity. We made good progress in H1 FY22, securing new logo
wins or significant expansion sales across all target regions and
sectors. Five new customers were secured in the period, including a
large insurer and a healthcare payer in the US, a major BPO, an
investment management firm and a global consulting and services
group.
The continued success of our stated Land & Expand strategy
was reflected in the number of contract renewals and expansions in
the period, including the transition of three Australian banking
customers from an annual licence to a multi-year contract for
ControliQ (one within the period and two post period end), both
increasing revenue visibility from the customer and evidencing the
central role of the software within the bank's back-office
operations. Expanded use of ControliQ was seen across many of
ActiveOps' customers, including three of the UK's leading high
street banks.
H1 FY22 also saw the first enterprise level up-sale of WorkiQ
into an existing ControliQ customer; the leading North American
bank was the first of ActiveOps' top 10 customers to take a WorkiQ
contract at scale, a key ambition of the Land & Expand
strategy. An example of the value we can provide can be seen in the
results delivered for a South African bank where the introduction
of WorkiQ alongside established ControliQ deployments has shown a
12% incremental increase in productivity levels. We are expecting
that more enterprise-level ControliQ customers will take advantage
of the increased productivity gains provided by the full suite of
Workware+ products in the future. Likewise, we anticipate existing
WorkiQ customers extending their usage to include ControliQ as they
seek higher levels of operations management maturity.
Focus for the second half
Our focus for H2 YE22 is to further strengthen our position in
the rapidly developing market for enterprise management of capacity
and work. We look forward to seeing the continued success of our
Land & Expand strategy and hope to increase our penetration of
our existing customers in addition to further new logo wins. We
continue to strengthen our relationships with our transformation
partners, work alongside leading industry analysts and support our
long-standing customers to achieve success in their markets.
We have enhanced our software development capacity through new
hires during H1 FY22. Further investment will take place in the
second half and we look forward to maximising the opportunities
created by our expanded product set.
Our ESG policies and targets are in development and are expected
to be communicated ahead of the FY22 AGM.
Confident Outlook
Trading in the second half of the financial year has continued
positively. Alongside further investment in product development,
pleasingly we have seen continued momentum of our Land & Expand
strategy with one new customer win, two significant existing
customer expansion sales and the transition of two Australian
banking customers from an annual licence to a multi-year contract
for ControliQ. The strong recovery of T&I revenue has
continued, supporting future software sales.
This, coupled with the performance that we have delivered in the
first half give us increased confidence in delivering a positive
full year performance, slightly ahead of the Board's
expectations.
As interest in workforce management solutions continues to grow,
our market-leading offering continues to resonate with our growing
global blue-chip customer base. Our belief in our ability to
execute on our growth plans remains strong and we are excited about
our future prospects.
Chief Financial Officer's Report
Financial Review
I am pleased to report a good financial performance by the Group
for the first half of the year, growing ARR, software and
subscription revenue, delivering a small adjusted EBITDA loss with
a strong cash position for the Group.
Revenue
Annual Recurring Revenue ('ARR') is a key performance metric for
the Group. Included within ARR are ActiveOps' software annual
licence fees along with small amounts of recurring support revenue
where a customer has purchased an ongoing care package.
ActiveOps' ARR at 30 September 2021 totalled GBP19.8m (30
September 20 GBP17.1m), representing year-on-year growth of 16%,
delivered through the expansion of our footprint in existing
customer accounts and both direct and partner sales to new
customers across all of our regions.
Total revenue for the Group at GBP11.5m (H1 FY21: GBP9.4m) was
22% ahead of the same period last year with recurring software and
subscription revenues increasing by 12% to GBP9.6m (2020: H1:
FY21GBP8.6m) on a reported basis.
Training and Implementation ('T&I') revenues at GBP1.9m
(2020: H1: FY21 GBP0.8m) were significantly ahead of the prior year
given the impact in H1 FY21 of the COVID-19 pandemic where
customers paused implementations for both new and expansion
opportunities whilst they managed the uncertainty of the pandemic
and secured their business operations.
Operating Profit and Margins
Gross margins moved to 80% (2021: 81%) primarily as a result of
a higher proportion of the lower margin Training &
Implementation revenues in the period. Software and Subscription
margins (4) improved to 85% (H1 FY21: 84%) with strong T&I
margins (5) at 56% (H1 FY21: 51%) as a result of significant high
margin implementations across a range of customers. T&I
revenues and margins vary according to the product mix (between
WorkiQ and ControliQ), the location of implementations (with higher
cost jurisdictions delivering a higher margin), and the level of
support required by ActiveOps coaches on each delivery. H1 saw an
ongoing higher mix of EMEIA ControliQ implementations that resulted
in a higher margin than the prior year.
Operating expenses (excluding share-based payments,
depreciation, amortisation and costs associated with the IPO)
increased by 26% to GBP9.3m (H1 FY21: GBP7.3m) following continued
investment in sales, marketing and technology development.
Continued lower levels of travel and the timing of new staff
joining led to slightly lower levels of operating expense than had
been budgeted. All commission and development costs are expensed to
the P&L in the period.
As a result of continued investment in the business, adjusted
EBITDA was a marginally loss-making position of (GBP0.2m) (H1 FY21:
profit GBP0.1m), being slightly ahead of management's
expectations.
Foreign Exchange
The Group has 54% (H1 FY21: 55%) of revenues invoiced in
currencies other than GBP. Exchange rates have remained broadly
stable over the period for the jurisdictions that the Group
operates in with a minimal impact on reported numbers.
Product and Technology Expenditure
Total expenditure on product management, research, development
and support in the year increased to GBP2.0m (H1 FY21: GBP1.2m).
The Board has continued to determine that none of the internal
R&D costs incurred during the year meet the criteria for
capitalisation. Consequently, these have been expensed as incurred
through the income statement.
Depreciation & Amortisation
Depreciation & amortisation of GBP0.5m (H1 FY21: GBP0.6m)
principally comprised intangible amortisation following the
acquisition of the OpenConnect entity in 2019 and the Australian
entities in 2017.
Note 4 - Software and Subscription margins are Software and
Subscription revenue less software and subscription cost of
sales
Note 5 - T&I margins are T&I revenues less T&I cost
of sales
Taxation
The Group had a minimal tax charge in the first half of the year
reflecting the loss-making position. The Group operates a transfer
pricing policy to ensure that profits are correctly recorded in
each of the jurisdictions in which it operates. ActiveOps has
brought forward tax losses in the UK and Irish legal entities.
Statutory Results
The Group reported a loss for the period of GBP1.0m (H1 FY21:
profit GBP0.6m including a GBP1.3m profit on discontinued
operations).
Earnings per Share
Basic Earnings per Share for continuing operations decreased to
a loss of 1.40p (H1 FY21: (1.19p)).
Dividend
The Board has determined that no dividend will be paid in the
period. The Group is primarily seeking to achieve capital growth
for shareholders. It is the Board's intention during the current
phase of the Group's development to retain distributable profits
from the business to the extent they are generated.
Cash flow
Cash flow from operations in the first half of the year was
negative (GBP1.8m) excluding GBP3.5m paid to tax authorities
relating to the exercise of employee share options at the IPO. The
negative cashflow position in H1 is attributable to the phasing of
renewals over the year with a significant level of renewals in the
second half of the year and the timing of payments of annual in
advance bills can significantly impact the cash position. The Group
issued invoices totalling GBP3.2m in the last week of September
2021 and first week of October 2021 and has received cash of
GBP2.4m by the 31 October 2021.
Balance Sheet
The Group has maintained a strong balance sheet position with
net assets at 30 September 2021 of GBP9.8m (FY21: GBP10.5m),
including a net cash position of GBP10.9m.
Management Statement
This Interim Management Report (IMR) has been prepared solely to
provide additional information to shareholders to assess the
Group's strategies and the potential for those strategies to
succeed. The IMR should not be relied on by any other party or for
any other purpose.
The IMR contains certain forward-looking statements. These
statements are made by the Directors in good faith based on the
information available to them up to the time of their approval of
this report but such statements should be treated with caution due
to the inherent uncertainties, including both economic and business
risk factors, underlying any such forward-looking information.
By the order of the Board
24 November 2021
Independent review report to ActiveOps plc
Introduction
We have been engaged by the Company to review the condensed set
of financial statements in the interim financial report for the six
months ended 30 September 2021 which comprises the consolidated
statement of profit and loss and other comprehensive income, the
consolidated statement of financial position, the consolidated
statement of cash flows, the consolidated statement of changes in
equity and notes 1 to 8. We have read the other information
contained in the interim financial report and considered whether it
contains any apparent misstatements or material inconsistencies
with the information in the condensed set of financial
statements.
Directors' Responsibilities
The interim financial report, is the responsibility of, and has
been approved by the directors. The directors are responsible for
preparing and presenting the interim financial report in accordance
with the AIM Rules for Companies.
As disclosed in note 2 the annual financial statements of the
Group will be prepared in accordance with UK-adopted International
Accounting Standards. The condensed set of financial statements
included in this interim financial report has been prepared in
accordance with the presentation, recognition and measurement
criteria of UK-adopted International Accounting Standards.
Our Responsibility
Our responsibility is to express to the Company a conclusion on
the condensed set of financial statements in the interim financial
report based on our review.
Scope of Review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity" issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the interim financial report for the six months ended 30
September 2021 is not prepared, in all material respects, in
accordance with the presentation, recognition and measurement
criteria of UK-adopted International Accounting Standards, and the
AIM Rules for Companies.
Use of our report
This report is made solely to the Company in accordance with
International Standard on Review Engagements (UK and Ireland) 2410
"'Review of Interim Financial Information performed by the
Independent Auditor of the Entity" issued by the Auditing Practices
Board. Our review work has been undertaken so that we might state
to the Company those matters we are required to state to them in an
independent review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the Company, for our review work, for this
report, or for the conclusions we have formed.
RSM UK Audit LLP
Chartered Accountants
Portland, 25 High Street
Crawley
West Sussex
RH10 1BG
24 November 2021
ActiveOps plc
Consolidated statement of profit and loss and other
comprehensive income for the period to September 2021
Six months Six months
ended ended
30 September 30 September
2021 2020
GBP000 GBP000
Notes Unaudited Unaudited
====================================================== ======= ============== ==============
Revenue 3 11,451 9,416
Cost of sales 4 (2,293) (1,783)
Gross profit 9,158 7,633
Administrative expense excluding share options
charges, depreciation, amortisation and exceptional
items (9,332) (7,245)
Administrative expense - share option charges
only (283) (10)
Administrative expense - depreciation and
amortisation only (503) (575)
Operating loss (960) (197)
Finance income 1 5
Financing costs (32) (229)
Loss before taxation (991) (421)
Taxation 5 (6) (32)
Loss for the year from continuing activities (997) (453)
Profit for the year from discontinued activities,
net of tax - 1,357
(Loss) / profit for the period (997) 904
Other comprehensive income
Items that may be subsequently reclassified
to profit or loss:
Exchange differences on translating foreign
operations (37) (185)
Total comprehensive (loss) / income for the
period attributable to the owners of the
parent company (1,034) 719
====================================================== ======= ============== ==============
Basic and diluted (loss) / earnings per share
Continuing operations (1.40p) (0.78p)
Discontinued operations 0.00p 2.35p
Total (1.40p) 1.57p
====================================================== ======= ============== ==============
ActiveOps plc
Consolidated statement of financial position
At 30 At 31
September March
2021 2021
GBP000 GBP000
Notes Unaudited Audited
=============================== ====== =========== =========
Non-current assets
Intangible assets 5,374 5,655
Property, plant and equipment 214 241
Right-of-use assets 642 736
Deferred tax assets 254 296
Total non-current assets 6,484 6,928
=============================== ====== =========== =========
Current assets
Trade and other receivables 7 6,086 5,836
Corporation tax recoverable 96 54
Cash and cash equivalents 10,915 16,617
=============================== ====== =========== =========
Total current assets 17,097 22,507
=============================== ====== =========== =========
Total assets 23,581 29,435
=============================== ====== =========== =========
Equity
Share capital 71 71
Share premium account 6,444 6,430
Share option reserve 286 4
Foreign exchange reserve (241) (204)
Retained earnings 3,214 4,210
Total equity 9,774 10,511
=============================== ====== =========== =========
Non-Current liabilities
Lease liabilities 530 655
Provisions 89 89
Deferred tax liabilities 1,149 1,210
Total non-current liabilities 1,768 1,954
=============================== ====== =========== =========
Current liabilities
Trade and other payables 8 11,891 16,808
Lease liability 148 162
=============================== ====== =========== =========
Total current liabilities 12,039 16,970
=============================== ====== =========== =========
Total equity and liabilities 23,581 29,435
=============================== ====== =========== =========
ActiveOps plc
Consolidated statement of cash flows
Six months Six months
ended ended
30 September 30 September
2021 2020
GBP000 GBP000
Notes Unaudited Unaudited
================================================ ======= ============== ==============
(Loss) / profit after tax (997) 904
Taxation 6 94
Finance income (1) (5)
Financing costs 32 233
Operating (loss) / profit (960) 1,226
Adjustments for:
Depreciation property, plant and equipment 76 107
Depreciation right-of-use asset 90 131
Amortisation of intangible assets 337 422
Share option charge 283 10
Change in trade and other receivables (283) 2,936
Change in trade and other payables 8 (4,867) (5,007)
Cash (used in) / from operations (5,324) (175)
Interest paid (32) (233)
Taxation paid (78) (211)
Net cash used in operating activities (5,434) (619)
================================================ ======= ============== ==============
Investing activities
Purchase of property, plant and equipment (49) (18)
Interest received 1 5
Net cash used in investing activities (48) (13)
================================================ ======= ============== ==============
Financing activities
Proceeds from issue of shares 15 -
Repayment of lease liabilities (135) (103)
Repayment of bank borrowings - (1,609)
Net cash used in financing activities (120) (1,712)
================================================ ======= ============== ==============
Net change in cash and cash equivalents (5,602) (2,344)
Cash and cash equivalents at beginning of
the period 16,617 4,093
Effect of foreign exchange on cash and cash
equivalents (100) 17
Cash and cash equivalents at end of the period 10,915 1,766
================================================ ======= ============== ==============
ActiveOps plc
Consolidated statement of changes in equity
Share Foreign
Share Share option exchange Retained
capital premium reserve reserve earnings Total
GBP000 GBP000 GBP000 GBP000
================================== ========== ========== ========== =========== =========== ========
At 1 April 2020 (unaudited) 19 4,755 221 (317) (5,041) (363)
================================== ========== ========== ========== =========== =========== ========
Profit for the period - - - - 904 904
Exchange differences on
translating foreign operations - - - (185) - (185)
Total comprehensive income
for the period - - - (185) 904 719
Transactions with owners,
recorded directly in equity
Share based payment charge - - 10 - - 10
Total transactions with
owners - - 10 - - 10
================================== ========== ========== ========== =========== =========== ========
At 30 September 2020 (unaudited) 19 4,755 231 (502) (4,137) 366
================================== ========== ========== ========== =========== =========== ========
At 31 March 2021 (audited) 71 6,430 4 (204) 4,210 10,511
================================== ========== ========== ========== =========== =========== ========
Loss for the period - - - - (997) (997)
Exchange differences on
translating foreign operations - - - (37) - (37)
Total comprehensive loss
for the period - - - (37) (997) (1,034)
Transactions with owners,
recorded directly in equity
Reserve transfer on exercising
of share options - - (1) - 1 -
Share based payment charge - - 283 - - 283
Issue of shares - 14 - - - 14
Total transactions with
owners - 14 282 - 1 297
================================== ========== ========== ========== =========== =========== ========
At 30 September 2021 (unaudited) 71 6,444 286 (241) 3,214 9,774
================================== ========== ========== ========== =========== =========== ========
ActiveOps plc
Notes forming part of the interim financial statements for the
period ended 30 September 2021
1. General information
ActiveOps plc ('the Company') is a public company limited by
shares incorporated in England and Wales. The registered office and
principal place of business is One Valpy, 20 Valpy Street, Reading,
Berkshire, RG1 1AR. The Company, together with its subsidiary
undertakings ('the Group') is principally engaged in the provision
of hosted operations management Software as a Service ('SaaS')
solutions to industry leading companies around the world.
2. Accounting policies
a) Basis of preparation
The Interim financial report for the six months ended 30
September 2021 has been prepared on the basis of the accounting
policies expected to be adopted for the year ended 31 March 2022.
These are in accordance with the accounting policies as set out in
the Group's last annual consolidated financial statements for the
year ended 31 March 2021.
The Interim financial report has been prepared on a going
concern basis and in accordance with the presentation, recognition
and measurement criteria of UK-adopted International Accounting
Standards.
The financial information in the Interim financial report does
not constitute statutory accounts, within the meaning of section
434 of the Companies Act 2006, for the six months ended 30
September 2021 and should be read in conjunction with the Group's
consolidated financial statements for the year ended 31 March 2021.
The consolidated financial statements for the year ended 31 March
2021 have been filed with the Registrar of Companies, were
unqualified and did not contain statements under Section 498 (2) or
(3) of the Companies Act 2006.
All figures presented are rounded to the nearest thousand,
unless stated otherwise.
b) Going Concern
The Directors have a reasonable expectation that there are no
material uncertainties that cast significant doubt about the
Group's ability to continue in operation and meet its liabilities
as they fall due for the foreseeable future, being a period of at
least 12 months from the date of approval of the interim financial
statements. During the period, the Group has retained a significant
cash balance. This ensures that the business remains financially
robust, with strong prospects for the future.
In light of the Covid-19 outbreak, the Directors have considered
appropriate measures to respond to the uncertain outlook and ensure
that the Group remains a going concern for a period of at least 12
months. Whilst there can be no certainty due to the conditions
across the world at present, the Directors have reviewed cash flow
forecasts for the business covering a period of at least 12 months
from the date of approval of the interim financial statements, they
are confident that sufficient funding is available to support
ongoing trading activity and investment plans for the business. The
interim financial statements have therefore been prepared on a
going concern basis.
3. Revenue
The Group derives all its revenue from the transfer of goods and
services.
A disaggregated geographical split of revenue by operating
segment is shown below between Europe, the Middle East, India and
Africa ('EMEIA'), North America and Australia. All revenue streams
are recognised over time.
SaaS T&I Total
Six months ended 30 September 2021 GBP000 GBP000 GBP000
==================================== ======== ======== ========
EMEIA 4,982 1,171 6,153
North America 2,462 217 2,679
Australia 2,144 475 2,619
9,588 1,863 11,451
==================================== ======== ======== ========
SaaS T&I Total
Six months ended 30 September 2020 GBP000 GBP000 GBP000
==================================== ======== ======== ========
EMEIA 4,506 653 5,159
North America 2,002 83 2,085
Australia 2,080 92 2,172
8,588 828 9,416
==================================== ======== ======== ========
4. Segmental analysis
The Group has two reporting segments, being SaaS and T&I.
The Group focuses its internal management reporting predominantly
on revenue and cost of sales. Total assets and liabilities are not
provided to the CODM in the Group's internal management reporting
by segment and therefore a split has not been presented below.
Information about geographical revenue by segment is disclosed in
note 3.
No individual customer accounted for 10% or more of turnover
during the reporting period.
SaaS T&I Total
Six months ended 30 September 2021 GBP000 GBP000 GBP000
==================================== ======== ======== ========
Revenue 9,588 1,863 11,451
Cost of sales (1,468) (825) (2,293)
8,120 1,038 9,158
==================================== ======== ======== ========
SaaS T&I Total
Six months ended 30 September 2020 GBP000 GBP000 GBP000
==================================== ======== ======== ========
Revenue 8,588 828 9,416
Cost of sales (1,378) (405) (1,783)
7,210 423 7,633
==================================== ======== ======== ========
5. Taxation
Six months Six months
ended ended
30 September 30 September
2021 2020
GBP000 GBP000
Unaudited Unaudited
================================================= ============== ==============
Current income tax
Foreign current tax on profit for the current
period 36 (54)
Foreign current tax on profit for the prior
period 2 157
Deferred tax
Origination and reversal of timing differences (32) (71)
Total tax charge 6 32
================================================== ============== ==============
Six months Six months
ended ended
30 September 30 September
2021 2020
GBP000 GBP000
Unaudited Unaudited
================================================= ============== ==============
Loss before tax (991) (421)
Tax at domestic rate of 19% (2020: 19%) (188) (80)
================================================== ============== ==============
Effect of:
Expenses that are not deductible in determining
taxable profit 21 (15)
Deferred tax not recognised 185 (8)
Adjustments in respect of prior periods 2 157
Effect of other tax rates (14) (22)
Total tax charge 6 32
================================================== ============== ==============
6. Earnings per share
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2021 2020 2021
Unaudited Unaudited Restated
======================================== === ============== ============== ===========
Loss on continuing activities (GBP000) (997) (453) (2,791)
Profit on discontinued activities
(GBP000) - 1,357 11,783
Weighted average number of shares
in issue in the period 71,334,942 57,720,180 57,840,821
Basic and diluted (loss) / earnings
per share (March 2021 restated)
Continuing operations (1.40p) (0.78p) (4.83p)
Discontinued operations 0.00p 2.35p 20.37p
Total (1.40p) 1.57p 15.54p
========================================= ================== ============== ===========
The earnings per share for the year ended 31 March 2021 were
misstated in the 2021 annual report and accounts as being a loss of
(3.91p) per share from continuing operations and a profit of 16.52p
per share on discontinued operations. This calculation was
incorrectly based upon the year end number of shares in issue,
rather than the weighted average shares in issue during the
year.
The number of shares in issue at 31 March 2021 were 71,320,680.
The weighted average number of shares in issue for the year ended
31 March 2021 was 57,840,821. Using the weighted average number of
shares in issue for the year ended 31 March 2021 the loss from
continuing operations is restated to be (4.83p) per share and the
profit from discontinued operations is restated to be 20.37p per
share.
7. Trade and other receivables
At 30 At 31
September March
2021 2021
GBP000 GBP000
Unaudited Audited
================================ =========== =========
Trade receivables 3,779 3,167
Prepayments and accrued income 897 1,046
Other receivables 1,410 1,623
6,086 5,836
================================ =========== =========
The Directors consider the carrying value of trade and other
receivables to be approximately equal to their fair value. Other
receivables includes an amount of GBP1.3m (March 2021: GBP1.3m)
held in escrow relating to the sale of OpenConnect in October
2020.
At 30 At 31
September March
2021 2021
GBP000 GBP000
Unaudited Audited
================================================= =========== =========
Trade receivables from contracts with customers 3,808 3,194
Less loss allowance (29) (27)
3,779 3,167
================================================= =========== =========
Trade receivables are amounts due from customers for services
performed in the ordinary course of business. They are generally
due for settlement within 30 days and are therefore all classified
as current. Trade receivables are recognised initially at the
amount of consideration that is unconditional. The Group holds the
trade receivables with the objective of collecting the contractual
cash flows, and so it measures them subsequently at amortised cost
using the effective interest method.
Included within prepayments and accrued income is the following
accrued income and contract assets:
At 30 At 31
September March
2021 2021
GBP000 GBP000
Unaudited Audited
================= =========== =========
Accrued income 287 583
Contract assets 146 242
================== =========== =========
8. Trade and other payables
At 30 At 31
September March
2021 2021
GBP000 GBP000
Unaudited Audited
==================================== =========== =========
Trade payables 283 689
Other taxation and social security 1,026 4,524
Other payables 3 101
Accruals and deferred income 10,579 11,494
11,891 16,808
==================================== =========== =========
Trade payables are unsecured and are usually paid within 30 days
of recognition. The carrying amounts of trade and other payables
are considered to be the same as their fair values, due to their
short-term nature.
At 31 March 2021 Included within other taxes and social security
is GBP3,498k of taxes payable on the share options that exercised
as part of the listing of the Company on 29 March 2021. According
to the terms of the share options, all option holders had an
obligation to reimburse the Group for any taxes that became payable
on their options. These proceeds were recovered from the cash
generated from the shares being issued and sold into the market,
and was paid to HMRC in April 2021. This unpaid tax has
significantly impacted the change in trade and other payables in
the consolidated statement of cashflows as shown for the year ended
31 March 2021 and the period ended 30 September 2021.
Included within accruals and deferred income is the following
contract liabilities:
At 30 At 31
September March
2021 2021
GBP000 GBP000
Unaudited Audited
====================== =========== =========
Contract liabilities 7,668 8,423
======================= =========== =========
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