TIDMAOM
RNS Number : 3032T
ActiveOps PLC
14 November 2023
14 November 2023
ActiveOps Plc
("ActiveOps", "the Company", "the Group")
Interim Results for the six months ended 30 September 2023
ActiveOps plc (AIM: AOM), a leading provider of Decision
Intelligence for service operations, is pleased to announce its
unaudited results for the six months ended 30 September 2023.
Financial Highlights:
Six months ended 30 September H1 FY24 H1 FY23 Change
Annual Recurring Revenue "ARR"(1) GBP23.7m GBP22.1m +7%
--------- ------------ -------
Net Revenue Retention "NRR"(2) on an annualised
basis 104% 109% -5ppts
--------- ------------ -------
Total Revenue GBP13.1m GBP12.3m +7%
--------- ------------ -------
Software & Subscription revenue GBP11.8m GBP10.9m +8%
--------- ------------ -------
Training & Implementation "T&I" revenue GBP1.3m GBP1.4m -1%
--------- ------------ -------
Gross margin 84% 81% +3ppts
--------- ------------ -------
Adjusted EBITDA(3) GBP0.8m GBP0.3m +167%
--------- ------------ -------
Profit/(loss) before tax GBP0.1m (GBP0.5m) -
--------- ------------ -------
Earnings/ (loss) per share on continuing operations (0.14p) (0.99p) +86%
--------- ------------ -------
Net cash and cash equivalents GBP9.9m GBP11.0m -10%
--------- ------------ -------
-- ARR(1) growth of 7%, or 15% at constant currency
-- Growth of constant currency NRR to 111% thanks to healthy expansions
performance
-- Adjusted EBITDA(3) up 167% to GBP0.8m (H1 FY23: GBP0.3m), driven
by consistently strong gross margins and good cost control
-- Achievement of Profit before Tax
-- Cash conversion(4) negative in the period due to seasonality
of renewals cycle. Expected to move to a positive position before
year end with significant renewals in H2
-- Balance sheet remains debt free with GBP9.9m cash in the bank
(H1 FY23: GBP11.0m), with a balance of GBP12.0m by 31 October
23
Operational Highlights
-- Growth in the period largely driven by expansion within existing
customer base, but supported by the addition of two new logos
which offer large land & expand opportunities in the future.
Six of the Group's top 10 accounts expanded usage of ActiveOps
products in the half
-- Launch of ControliQ Series 3, which enables customers to take
advantage of the latest in AI tools for the back-office
-- Ongoing investment in innovation will see the launch of ControliQ
Series 4 in 2024
Outlook
-- Successful re-brand and increased focus on marketing resulting
in a better developed sales pipeline, however continuing to see
extended timescales for completing the contracting phase of sales,
due to the wider macro environment
-- Confident in an acceleration in ARR growth rate by year end and
delivery of revenue and EBITDA for FY24 in line with Board expectations
Richard Jeffery, Chief Executive Officer of ActiveOps plc,
commented:
"Every day, operational leaders are being asked to do more with
less. The investments we have made into our solutions are helping
our enterprise customers do just that, with increasing ease. The
first half of the year has seen the launch of the most
sophisticated version of our ControliQ offering to date and we have
been successful in expanding the scope of use of our products
within our customer base. While contracting cycles continue to be
elongated, our focused marketing efforts mean our sales pipeline
continues to build.
"The growing breadth and increasing sophistication of our
offering, our blue-chip customer base, geographic reach, and new
pricing tiers, all provide us with the opportunity to accelerate
ARR growth in H2 and beyond and we look to the future with
continued confidence."
Footnote to Financial highlights
The above non-GAAP measures are unaudited
1. Annual Recurring Revenue is recurring revenue from contracts with customers
2. Net Revenue Retention is the percentage of recurring revenue
retained from existing customers
3. Adjusted EBITDA is used by management to assess the trading
performance of the business. Defined as Operating profit before
depreciation, amortisation, share-based payment charges and
exceptional items and includes FX differences.
4. Cash conversion is defined as Cash generated from Operations
in the Consolidated Statement of Cash Flows, adjusted to exclude
cash payments for exceptional items as a percentage of adjusted
EBITDA.
For more information, please contact:
ActiveOps Via Alma
Richard Jeffery, Chief Executive www.activeops.com
Officer
Ken Smith, Chief Financial Officer
Investec Bank plc +44 (0)20 7597 5970
Corporate Broking & PLC Advisory
Patrick Robb / David Anderson
Alma + 44(0) 203 405 0205
Caroline Forde / Will Ellis Hancock
About ActiveOps
The Company's offerings provide predictive and prescriptive
insight to help service operations make better decisions - faster.
The Company's AI-powered SaaS solutions are underpinned by 15+
years of operational data and its AOM methodology that's proven to
drive cross department decision-making.
With Decision Intelligence, ActiveOps' customers deliver MORE -
release 20%+ capacity within the first 12 months and boost
productivity by 30%+ leading to MORE business impact. Customer
turnaround times are improved substantially, costs are reduced,
SLAs are met, and employees are happier and more engaged.
T he Company has 180 employees, serving a global customer base
of over 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, healthcare administration
and business process outsourcing (BPO) sectors, including
Nationwide, TD Bank, Elevance and DXC Technology.
CEO Statement
The half has seen solid commercial, financial and operational
progress across the Group, thanks to the successful execution of
our growth strategy by the whole ActiveOps team. We continue to
deliver on our clear targets, both in terms of our land &
expand sales strategy and product roadmap, underpinning our
performance and continued success. We have entered the second half
of the year with a well-developed sales and renewal pipeline across
all markets and offerings, providing confidence in a strong H2
performance and acceleration in our ARR growth rate.
In the half we achieved two customer wins and multiple customer
expansions, as demonstrated by the growth in our constant currency
NRR to 111% (H1 FY23: 109%). Highlights include Nedbank expanding
its use of ControliQ into new areas and our first major WorkiQ
customer adopting ControliQ. CaseworkiQ continues to generate
interest across our customer base, with amongst others a second
leading UK bank and a large managed services organisation adopting
the product alongside their existing ControliQ deployments. Looking
ahead, we anticipate expansion continuing to be a key driver for
the Group, as we see a growing trend of organisations looking to
adopt enterprise wide solutions. We are also starting to see
additional areas of demand, such as our US based WorkiQ customers
exploring the adoption of ControliQ.
With the launch of ControliQ Series 3 in the period, our product
teams have begun the rollout and implementation of Artificial
Intelligence (AI), especially Machine Learning (ML) technologies,
increasing the competitive strength and attractiveness of our
offerings. We have simultaneously carried out a repositioning of
the business as a provider of Decision Intelligence for service
operations, blending AI and human intelligence to deliver the most
complete and useful set of predictive and prescriptive insights for
service operations. The message is resonating well across the
customer base and target markets at a time of general macroeconomic
caution, when companies wish to do more with less, providing a
clear framework for our continued growth.
Robust financial performance
Financially the Group continues to perform well and thanks to
the ongoing success of our land & expand sales strategy, low
levels of churn and high recurring revenues, we are in line to
achieve both our revenue and EBITDA expectations for the full
year.
Overall Group revenue grew 7% in the period to GBP13.1m (H1
2023: GBP12.3m). Within this, SaaS revenues grew by 8% to GBP11.8m
(H1 2023: GBP10.9m), or 13% at constant currency, driving a 7%
growth in exit Annual Recurring Revenue (ARR) to GBP23.7m
(September 2022: GBP22.1m). In constant currency terms exit ARR
growth was 15%. Training & Implementation revenues of GBP1.3m
in the period were broadly consistent with the prior year (H1 2023:
GBP1.4m).
The Group delivered significant EBITDA growth in the half of
167% to GBP0.8m (H1 2023: GBP0.3m), within the context of less
favourable FX movement in the period, underscoring the strength of
the Company's performance in the year to date. This has translated
into the Group's profit before tax of GBP0.1m (H1 2023: loss of
GBP0.5m).
Through prudent management of the business, the Group remains
well capitalised with cash at bank as at 30 September 2023 of
GBP9.9m (H1 2023: GBP11.0m), increasing to GBP12.0m by 31 October.
With a solid balance sheet, strong gross margins, high levels of
recurring revenues and good cash collection, the Group is in a
strong position to continue to grow and invest in its offering in
spite of the difficult macroeconomic environment.
Product development and innovation
The development of our product offering has continued to
accelerate in the first half of the year, in line with our stated
product road map. The innovations we are making across the product
suite will provide customers with increasingly sophisticated tools
that are able to help manage the growing complexity of the
back-office and differentiate us from competitors.
ControliQ
In the half we successfully introduced our new tiered licensing
and pricing model for ControliQ, introducing a series of offerings
to enable customers to select the level of capabilities that suit
their needs, moving through the series as their ambitions and
requirements increase.
As part of this, we launched C ontroliQ Series 3, which has been
enhanced with additional AI-based features that enable customers to
further improve their performance while removing management effort.
The first to launch is Smart Planning, which automates forecasting
and planning, reducing the effort consumed in the process whilst
increasing accuracy. Series 4 will be released in the first half of
2024, which will include additional AI and ML based features,
including automatic skills cataloguing, a suite of new senior
leader insights and the Company's first GenerativeAI based app; a
virtual coach which predicts the interventions required by
operations leaders and can prescribe the best action to take.
The upgrades we are making across ControliQ have been focused on
helping our customers make better decisions, faster. The speed of
development and launch of these powerful AI features have been made
possible by ActiveOps' long heritage in the world of back-office
optimisation and the volume of data flowing through its existing
platforms, on which to train and test algorithms. Our team was well
placed to quickly conduct discovery work around where we could use
Generative AI within our product set and further expand our use of
AI within the products.
The advanced features within Series 3 are proving a powerful
sales tool for both existing and new customers. We are in the
process of transitioning our existing customer base onto Series 3,
generally at the point of renewal, which thanks to the
re-platforming work carried out in previous years is a
straightforward process and have been pleased with the progress
achieved to date.
WorkiQ
The main focus for WorkiQ in the half has been the work being
done ahead of the launch of the Cloud version. By hosting WorkiQ in
the Cloud, we will be able to deploy it more rapidly across new
customers and get new users within existing customers set up
quicker. We are targeting a release for this by the end of
FY24.
CaseworkiQ
For CaseworkiQ the team has been focused on bringing it onto the
same technical platform as ControliQ, which is now complete. In the
half we successfully moved our flagship CaseworkiQ customer, a
leading UK bank, which is also a large ControliQ customer onto the
integrated platform. The integration of the two makes it easier for
customers to use both products simultaneously, within one platform,
helping to facilitate ease of use across our solutions and further
improve the stickiness of our products. The capabilities of the
solution have also evolved with the addition of new live status
dashboards and case flight-path tracking.
Growth of our customer base: Land & Expand
We estimate our total addressable market being c.GBP900m per
annum, of which GBP90m relates to the cross and upsell of our
solutions to our existing customers. We remain focussed on
expanding our footprint in our existing customer base whilst
delivering against our customer acquisition strategy, which is
tightly focussed on banks, insurers and BPS providers in our target
geographies.
Our land & expand strategy, low levels of churn and good
recurring revenues continue to support the Group's overall
performance. In spite of the widely reported elongation of
corporate sales and contracting cycles , the Group secured two new
customers in the first half and 11 significant customer expansion
deals, across all products and geographies.
Retention rates remain strong across all territories, as the
need for service operations to improve performance and enhance both
customer and employee experience intensifies as a result of the
macro-economic environment and ever increasing expectations of both
customers and employees. Managing large, complex service operations
requires thousands of decisions to be made daily by hundreds of
managers. Unlike so many operations leaders, our customers have the
data and insights at their finger tips to ensure that the right
decisions are made and in a timely and efficient manner. The
aggregate effect on both the performance of the operation and
efficient use of management time is transformational. Our latest
predictive and prescriptive capabilities, leveraging AI trained on
the 15+ years of data we hold, are offering our existing customers
new levels of performance improvement.
The demonstrable results we achieve for our customers are
incredibly powerful and support our land & expand strategy.
Savings of GBP7m in 9 months for one customer and an average
capacity gain of 20% in the first year for another are only two
examples of how our products help, but they are part of a wider
group of examples that send a powerful message to potential and
existing customers alike.
Our remodelled licencing structure is also anticipated to offer
our customers greater flexibility over how they access our latest
developments and help drive growth in the future.
Our marketing function has developed significantly since Bhavesh
Vaghela's appointment as CMO in the last financial year. The
marketing team has been working hard on various projects to raise
brand awareness and generate sales leads and we are starting to see
the green shoots coming though, as the quality of leads we are
generating is far better, helping improve the quality of deals in
our pipeline, underpinning our confidence in the Group's
outlook.
Our customer conferences this year have been popular, with
overall attendance across the three conferences up 40% on the prior
year. Here, the Company successfully launched its new positioning,
focused on the provision of Decision Intelligence for Service
Operations. Decision Intelligence, as defined by IDC, is 'the
discipline of using AI and data science to improve business
decision making, and it's enabling organisations to cut through
this complexity.' This is the very crux of what we do for
operations teams. The Group's products are all designed to help
customers improve their decision making and do more with what they
have. Decision Intelligence is being researched and sponsored by
key analyst firms, like Gartner, and this rebrand better positions
us in this space and indicates clearly how we help our
customers.
Our partnership with Microsoft continues to support our overall
performance. The renewal of one of our biggest customers in the
half, a UK bank, was the first major transaction via the Microsoft
Marketplace, validating the appeal of partnering with Microsoft.
This is one of the aspects of the relationship we believe we can
leverage to make a real difference in the long term.
The market need for our technology is clear and reflected by our
healthy levels of pipeline opportunities, which give us confidence
in an acceleration in our ARR growth rate by year end.
Confident Outlook
We are well set for the future and have made a robust start to
the second half of the year, with three significant expansions with
existing banking customers, closed so far. The breadth and
increasing sophistication of our offering, geographic reach, and
new pricing tiers, all provide us with confidence in a strong H2
performance and beyond.
The Group remains well capitalised, with low levels of churn and
high levels of ARR, providing a strong position to continue
measured investment in innovation, to increase the size of our
opportunity and attractiveness of our offering to customers.
With growth against all of our key KPIs and a healthy sales
pipeline, we remain on track to deliver a full year in line with
the Board's Revenue and EBITDA expectations.
Richard Jeffery
Group Chief Executive Officer
Chief Financial Officer's Report
Financial Review
I am pleased to report a strong financial performance by the
Group for the first half of the year, with growing ARR and total
revenue, delivering a solid adjusted EBITDA profit with a strong
cash position for the Group.
Revenue
ARR is a key performance metric for the Group. Included within
ARR are software licence fees along with recurring support revenue
where a customer has purchased an ongoing care package.
ActiveOps' ARR at 30 September 2023 totalled GBP23.7m (30
September 22: GBP22.1m), representing year-on-year growth of 7%,
delivered through the expansion of our footprint in existing
customer accounts and sales to new customers. Furthermore, ARR
growth, measured in constant currency, exceeded 15%.
Total revenue for the Group at GBP13.1m (H1 FY23: GBP12.3m) was
8% ahead of the same period last year with recurring software &
subscription revenues increasing by 7% to GBP11.8m (H1 FY23:
GBP10.9m) on a reported basis. Software & subscription revenue,
measured on a constant currency basis, showed an increase of
13%.
Training & Implementation revenues at GBP1.3m (H1 FY23:
GBP1.4m) were slightly behind prior year primarily due to timing of
implementations being delayed or extended by customers as well as
slow T&I sales in H1 FY24.
Operating Profit and Margins
Gross margins improved to 84% (H1 FY23: 81%). Software &
subscription margins increased to 87% (H1 FY23: 84%), as a result
of higher revenues and good cost control. T&I margins were
strong at 55% (H1 FY23: 59%), T&I revenues and margins vary
according to the product mix (between WorkiQ, ControliQ and
CaseworkiQ), the location of implementations (with higher cost
jurisdictions delivering a higher margin), and the level of support
required by ActiveOps coaches on each delivery.
Operating expenses (excluding share-based payments, depreciation
and amortisation) increased by 5% to GBP10.2m (H1 FY23: GBP9.7m).
Furthermore, H1 FY23 operating expenses benefited from a
significant foreign exchange gain.
Adjusted EBITDA was a positive GBP0.8m (H1 FY23: GBP0.3m),
reflecting solid revenue growth and gross margins, along with good
cost control in the face of inflationary pressures.
Foreign Exchange
The Group has 62% (H1 FY23: 53%) of revenues invoiced in
currencies other than GBP, with the increase in non GBP invoices
reflecting a difference in the timing of invoices raised. Exchange
rates have been volatile over the period with the pound
strengthening in particular against the Australian Dollar, US
Dollar and Canadian Dollar.
Product and Technology Expenditure
Total expenditure on product management, research, development
and support in the first half increased to GBP2.7m (H1 FY23:
GBP2.5m) as investment made in FY23 rolled into the current year.
Capitalised labour of GBP0.5m (H1 FY23: GBP0.3m) related to the
development of new product features.
Depreciation & Amortisation
Depreciation & amortisation of GBP0.5m (H1 FY23: GBP0.5m)
principally comprised intangible amortisation following the
acquisition of the OpenConnect entity in 2019 and the Australian
entities in 2017.
Taxation
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 profit before tax for the period of GBP0.1m
(H1 FY23: loss of GBP0.6m).
Earnings per Share
Basic Earnings per Share for continuing operations was a loss of
0.14p (H1 FY23: (0.99p)).
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 an
outflow of GBP4.9m. The negative cashflow position in H1 is
attributable to the phasing of renewals over the year, and the
timing of invoices raised. A significant level of renewals take
place in the second half of the year and the timing of payments of
annual in advance bills significantly impacts the cash position at
30 September 2023. The Group received significant cash inflows in
October 2023 and had cash of GBP12.0m at 31 October 2023.
Balance Sheet
The Group has maintained a strong balance sheet position with a
cash position of GBP9.9m (H1 FY23: GBP11.0m) and net assets at 30
September 2023 of GBP8.0m, (31 March 2023: GBP7.9m).
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.
Unaudited consolidated condensed statement of profit and loss
and other comprehensive income for the six months period to
September 2023
Six Six
months months
ended ended
30 September 30 September
2023 2022
GBP000 GBP000
Notes Unaudited Unaudited
====================================================== ======= ============== ==============
Revenue 3 13,060 12,291
Cost of sales 4 (2,095) (2,288)
Gross profit 10,965 10,003
Administrative expense excluding share options
charges, depreciation, amortisation and exceptional
items (10,173) (9,662)
Administrative expense - share option charges
only (175) (390)
Administrative expense - depreciation and
amortisation only (521) (523)
(10,869
Total Administrative expenses ) (10,575)
Operating profit / (loss) 96 (572)
Finance income 19 2
Financing costs (11) (36)
Profit / (loss) before taxation 104 (606)
Taxation (201) (104)
Loss for the period (97) (710)
Basic and diluted loss per share 5 (0.14p) (0.99p)
Other comprehensive income
Items that may be subsequently reclassified
to profit or loss:
Exchange differences on translating foreign
operations 11 120
Total comprehensive loss for the period
attributable to the owners of the parent
company (86) (590)
====================================================== ======= ============== ==============
ActiveOps plc
Unaudited consolidated condensed statement of financial
position
At 30 At 31
September March
2023 2023
GBP000 GBP000
Notes Unaudited Audited
=============================== ====== =========== =========
Non-current assets
Intangible assets 5,915 5,735
Property, plant and equipment 140 162
Right-of-use assets 351 419
Deferred tax assets 210 217
Total non-current assets 6,616 6,533
=============================== ====== =========== =========
Current assets
Trade and other receivables 6 4,643 6,373
Corporation tax receivable 16 -
Cash and cash equivalents 9,896 15,377
=============================== ====== =========== =========
Total current assets 14,555 21,750
=============================== ====== =========== =========
Total assets 21,171 28,283
=============================== ====== =========== =========
Equity
Share capital 71 71
Share premium account 6,444 6,444
Share option reserve 768 593
Foreign exchange reserve (213) (224)
Retained earnings 886 983
Total equity 7,956 7,867
=============================== ====== =========== =========
Non-Current liabilities
Lease liabilities 303 364
Provisions 119 102
Deferred tax liabilities 802 889
Total non-current liabilities 1,224 1,355
=============================== ====== =========== =========
Current liabilities
Trade and other payables 7 11,692 18,860
Lease liabilities 68 100
Corporation tax payable 231 101
=============================== ====== =========== =========
Total current liabilities 11,991 19,061
=============================== ====== =========== =========
Total equity and liabilities 21,171 28,283
=============================== ====== =========== =========
ActiveOps plc
Unaudited consolidated condensed statement of cash flows
Six Six
months months
ended ended
30 September 30 September
2023 2022
GBP000 GBP000
Notes Unaudited Unaudited
=================================================== ======= ============== ==============
Loss after tax (97) (710)
Taxation 201 104
Finance income (19) (2)
Financing costs 11 36
Operating profit / (loss) 96 (572)
Adjustments for:
Depreciation property, plant and equipment 59 64
Depreciation right-of-use asset 67 72
Amortisation of intangible assets 395 387
Share option charge 175 390
Change in trade and other receivables 6 1,730 183
Change in trade and other payables and provisions 7 (7,151) (2,028)
Cash used in operations (4,629) (1,504)
Interest paid (11) (13)
Taxation paid (172) (129)
Net cash used in operating activities (4,812) (1,646)
=================================================== ======= ============== ==============
Investing activities
Purchase of property, plant and equipment (39) (40)
Purchase of software (542) (316)
Interest received 19 2
Net cash used in investing activities (562) (354)
=================================================== ======= ============== ==============
Financing activities
Repayment of lease liabilities (91) (111)
Net cash used in financing activities (91) (111)
=================================================== ======= ============== ==============
Net change in cash and cash equivalents (5,465) (2,111)
Cash and cash equivalents at beginning of
the period 15,377 13,753
Effect of foreign exchange on cash and cash
equivalents (16) (666)
Cash and cash equivalents at end of the
period 9,896 10,976
=================================================== ======= ============== ==============
ActiveOps plc
Unaudited consolidated condensed statement of changes in
equity
Share Foreign
Share Share option exchange Retained
capital premium reserve reserve earnings Total
GBP000 GBP000 GBP000 GBP000
================================== ========== ========== ========== =========== =========== ========
At 31 March 2022 (audited) 71 6,444 566 (43) 1,480 8,518
================================== ========== ========== ========== =========== =========== ========
Loss for the period - - - - (710) (710)
Exchange differences on
translating foreign operations - - - 120 - 120
Total comprehensive loss
for the period - - - 120 (710) (590)
Transactions with owners,
recorded directly in equity
Share based payment charge - - 390 - - 390
================================== ========== ========== ========== =========== =========== ========
Total transactions with
owners - - 390 - - 390
---------------------------------- ---------- ---------- ---------- ----------- ----------- --------
At 30 September 2022 (unaudited) 71 6,444 956 77 770 8,318
================================== ========== ========== ========== =========== =========== ========
At 31 March 2023 (audited) 71 6,444 593 (224) 983 7,867
================================== ========== ========== ========== =========== =========== ========
Loss for the period - - - - (97) (97)
Exchange differences on
translating foreign operations - - - 11 - 11
Total comprehensive loss
for the period - - - 11 (97) (86)
Transactions with owners,
recorded directly in equity
Share based payment charge - - 175 - - 175
Total transactions with
owners - - 175 - - 175
================================== ========== ========== ========== =========== =========== ========
At 30 September 2023 (unaudited) 71 6,444 768 (213) 886 7,956
================================== ========== ========== ========== =========== =========== ========
ActiveOps plc
Notes forming part of the interim condensed unaudited financial
statements for the period six months ended 30 September 2023
1. General information
ActiveOps plc ('the Company') is a public company limited by
shares, incorporated, domiciled and registered 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 condensed consolidated unaudited interim financial
statements ("interim financial statements") for the period 1 April
2023 to 30 September 2023 are unaudited. The group has chosen not
to adopt IAS 34 "Interim Financial Statements" in preparing the
interim financial information. The condensed consolidated interim
financial statements incorporate unaudited comparative figures for
the interim period from 1 April 2022 to 30 September 2022 and the
audited financial year ended 31 March 2023.
The Interim financial statements for the six months ended 30
September 2023 have been prepared on the basis of the accounting
policies expected to be adopted for the year ended 31 March 2024.
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 2023.
The Interim financial statements have been prepared under the
historical cost convention and on a going concern basis and in
accordance with the presentation, recognition and measurement
criteria of UK-adopted International Accounting Standards.
All figures presented are rounded to the nearest thousand,
unless stated otherwise.
b. Going Concern
The Directors believe 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.
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 financial statements, and together
with the projected revenue and available cash reserves, 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 2023 GBP000 GBP000 GBP000
==================================== ======== ======== ========
EMEIA 6,456 814 7,270
North America 2,863 275 3,138
Australia 2,402 250 2,652
11,721 1,339 13,060
==================================== ======== ======== ========
SaaS T&I Total
Six months ended 30 September 2022 GBP000 GBP000 GBP000
==================================== ======== ======== ========
EMEIA 5,470 984 6,454
North America 3,013 21 3,034
Australia 2,455 348 2,803
10,938 1,353 12,291
==================================== ======== ======== ========
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 Chief Operating Decision-Maker (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.
SaaS T&I Total
Six months ended 30 September 2023 GBP000 GBP000 GBP000
==================================== ======== ======== ========
11,7
Revenue 21 1,3 39 13,060
Cost of sales (1,486) (609) (2,095)
10,2
35 7 30 10,965
==================================== ======== ======== ========
SaaS T&I Total
Six months ended 30 September 2022 GBP000 GBP000 GBP000
==================================== ======== ======== ========
Revenue 10,938 1,353 12,291
Cost of sales (1,732) (556) (2,288)
9,206 797 10,003
==================================== ======== ======== ========
5. Earnings per share
Six months Six months
ended 30 ended 30
September September
2023 2022
Unaudited Unaudited
======================================== =========== ===========
Loss on continuing activities (GBP000) (97) (710)
Weighted average number of shares
in issue in the period 71,364,180 71,364,180
Basic and diluted loss per share (0.14p) (0.99p)
========================================= =========== ===========
6. Trade and other receivables
At 30 At 31
September March
2023 2023
GBP000 GBP000
Unaudited Audited
================================ =========== =========
Trade receivables 3,206 5,507
Prepayments and accrued income 1,003 675
Other receivables 434 191
4,643 6,373
================================ =========== =========
The Directors consider the carrying value of trade and other
receivables to be approximately equal to their fair value.
At 30 At 31
September March
2023 2023
GBP000 GBP000
Unaudited Audited
================================================= =========== =========
Trade receivables from contracts with customers 3,262 5,563
Less loss allowance (56) (56)
3,206 5,507
================================================= =========== =========
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.
7. Trade and other payables
At 30 At 31
September March
2023 2023
GBP000 GBP000
Unaudited Audited
==================================== =========== =========
Trade payables 1 167
Other taxation and social security 156 1,360
Other payables 6 5
Accruals and deferred income 11,529 17,328
11,692 18,860
==================================== =========== =========
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.
8. Events after the reporting date
There have been no events that have occurred since the period
end which require disclosure.
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END
IR GPGCUGUPWPUW
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November 14, 2023 02:00 ET (07:00 GMT)
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