TIDMAQX
RNS Number : 6864M
Aquis Exchange PLC
23 September 2021
23 September 2021
Aquis Exchange PLC
("Aquis", the "Company" or the "Group")
Interim results for the six months ended 30 June 2021
Continued strong growth with EBITDA more than triple 1H20
Aquis Exchange PLC (AQX.L), the exchange services group, is
pleased to announce its unaudited results for the six months ended
30 June 2021.
Highlights:
-- Revenue increased 37% to GBP6.7 million (1H20: GBP4.9 million)
-- EBITDA grew to GBP1.6 million (1H20: GBP0.5 million)
-- Pre-tax profit grew to GBP1.0 million (1H20: GBP0.0 million)
-- Cash and cash equivalents at 30 June 2021 of GBP13.9 million
(30 June 2020: GBP11.2 million)
-- Membership of Aquis Exchange (AQX) grew to 39 (1H20: 31)
and there was a 27% increase in the average monthly usage,
in terms of chargeable orders (2Q 2021 vs 4Q 2020)
-- Market share of all pan-European trading significantly increased
at 5.80% in 2Q21 (4.65% 4Q20, 4.56% 2Q20)
-- Overall share of available liquidity of 22%, the highest
of any European MTF
-- Aquis Stock Exchange (AQSE) successfully integrated into
the Group and multiple enhancements implemented, resulting
in a record fourteen admissions completed during 1H21
Post-period highlights:
-- Currently tracking in line with market expectations for
the full year
-- Achieved a new record monthly market share of pan-European
trading of 6.2% in July 2021
Alasdair Haynes, Chief Executive Officer of Aquis,
commented:
"We are delighted to announce that profits have continued to
increase, reflecting the strong momentum maintained in revenue
growth. This growth has been driven by our existing Members
continuing to increase their trading volumes through our
pan-European equity, lit market. The strength of our offering in
this division is demonstrated by our having reached 5.80% of all
pan-European secondary trading during 2Q21.
Following the completion of the acquisition of AQSE in March
2020 we introduced a number of strategic initiatives which have
significantly improved liquidity, spreads and the overall
attractiveness of the market. These changes have had a material
effect on the number of companies admitted to trading with 14 new
admissions during the first half, compared to three in 1H20.
While we anticipate the prevailing economic uncertainty will
continue to impact market participants in the short to medium term,
we have demonstrated we have the right model, team, technology and
vision to deliver shareholder value and look to the future with
confidence."
An overview of the results from Alasdair Haynes, CEO, is
available to view on this link:
https://www.brrmedia.co.uk/broadcasts-embed/6149d6a43ae1ca74490b15c2/aqx/?popup=true
The Group will be hosting webinars for analysts and retail
investors today at 9.00 and 13.00 respectively.
If you would like to register for the analyst webinar, please
contact aquis@almapr.co.uk . Investors who would like to attend the
retail investor webinar can sign up to Investor Meet Company for
free and add themselves to the meeting via
https://www.investormeetcompany.com/aquis-exchange-plc/register-investor
. Investors who have already registered will be automatically
invited.
Enquiries:
Aquis Exchange PLC Tel: +44 (0)20 3597
6321
Alasdair Haynes, CEO
Jonathan Clelland, CFO and COO Tel: +44 (0)20 3597
Belinda Keheyan, Head of Marketing 6329
Liberum Capital Limited (Nominated Adviser Tel: +44 (0)20 3100
and Broker) 2000
Clayton Bush
Chris Clarke
Edward Thomas
Kane Collings
Canaccord Genuity Limited (Joint Broker) Tel: +44 (0) 20 7523
Bobbie Hilliam 8000
Patrick Dolaghan
Alma PR (Financial PR Adviser) Tel: +44 (0)20 3405
0209
Susie Hudson aquis@almapr.co.uk
Kieran Breheny
Faye Calow
Notes to editors:
Aquis Exchange PLC is an exchange services group, which operates
pan-European cash equities trading businesses (Aquis Exchange/AQX),
growth and regulated primary markets (Aquis Stock Exchange/AQSE)
and develops/licenses exchange software to third parties (Aquis
Technologies).
Aquis Exchange (AQX) is authorised and regulated by the UK
Financial Conduct Authority and France's Autorité des Marchés
Financiers to operate Multilateral Trading Facility businesses in
the UK/Switzerland and in EU27 respectively. AQX operates lit order
books and does not allow aggressive non-client proprietary trading,
which has resulted in lower market impact and signalling risk on
AQX than other trading venues in Europe. According to independent
studies, trades on Aquis are less likely to lead to price movement
than on other lit markets. AQX uses a subscription pricing model
which works by charging users according to the message traffic they
generate, rather than a percentage of the value of each stock that
they trade.
Aquis Stock Exchange (AQSE) is a stock market providing primary
and secondary markets for equity and debt products. It is
authorised as a Recognised Investment Exchange, which allows it to
operate a regulated listings venue. The AQSE Growth Market is
divided into two segments 'Access' and 'Apex', with different
levels of admission criteria. The Access market focuses on earlier
stage growth companies, while Apex is the intended market for
larger, more established businesses.
Aquis Technologies is the software and technology division of
Aquis Exchange PLC. It creates and licenses cutting-edge,
cost-effective matching engine and trade surveillance technology
for banks, brokers, investment firms and exchanges.
Aquis Exchange PLC (AQX.L) is listed on the Alternative
Investment Market of the LSE (AIM) market. For more information,
please go to www.aquis.eu
For more information, please go to www.aquis.eu and
www.aquis.technology
Chief Executive Officer's Report
The six months to 30 June 2021 have been another strong period
of growth as we build on the profits achieved during 2020. In
addition, we have made good operational progress in all areas to
help drive us towards our long-term goals. The fact that we have
achieved all this amidst the continued challenging economic
circumstances arising from the global Covid-19 pandemic
demonstrates our strong operational resilience and the continued
demand for our unique offering.
We are very pleased to have implemented our numerous planned
enhancements for the AQSE market, and that these changes have been
so well received by market participants.
Operational Review
Aquis continued to develop its three divisions throughout the
period:
-- Aquis Exchange (AQX): its pan-European lit equities market;
-- Aquis Stock Exchange (AQSE): a primary listings market for small and mid-cap companies;
-- Aquis Technologies: a multi-asset class technology licensing
service to an international client base
The Group's Market Data income stream (generated through the
sale of AQX and AQSE data) has also grown substantially during the
period.
This has enabled us to continue our strong growth as synergies
are developed and the business potential is harnessed.
We continue to invest in key personnel in all areas, including
the recent appointments of David Stevens as Chief Revenue Office
(CRO) in May 2021, and Richard Fisher as Director of Finance (DoF)
earlier in the year. Both David and Richard have already
demonstrated their value in the short time since they joined Aquis
and we are confident that they will help accelerate our business
development progress going forward. The strength, experience and
commitment of our staff, who have continued to demonstrate an
admirably flexible approach during the last six months, remain a
key contributor to our success.
Covid-19 Update
As previously communicated, the Group had well-established
remote working policies and disaster recovery plans, which were put
into practice during 1H20 and which have enabled the remote market
operations although Aquis has now implemented a partial flexible
return to office working. Thanks to our focus on technology and in
line with being a flexible and agile operation, we have continued
to serve our clients effectively whilst also pushing ahead with key
strategic initiatives.
During 1H21 trading levels have been close to historic averages
compared to 1H20 where we saw in the early weeks of the pandemic
greatly increased market volumes and volatility which had a
short-term positive impact. It is difficult to predict equity
market trading volumes in the medium to long term, however, our
business model continues to show its strength and we are confident
we have the right strategy in place to continue delivering
significant growth over the long term.
A summary of progress across our divisions is outlined
below.
The Exchanges
The performance of both Aquis Exchange and Aquis Stock Exchange
has progressed well. Exchange revenue increased by GBP1.2m (33%)
from GBP3.7 million to GBP4.9 million and the number of Members
grew from 31 to 39. In addition, a number of Aquis Exchange Members
increased their trading volumes materially, with a 27% increase in
the average monthly usage, in terms of chargeable orders (2Q 2021
vs 4Q 2020). This resulted in increased monthly subscriptions.
There are now nine Members using the top three subscription pricing
tiers and 25 in the other five tiers, with five liquidity
providers.
Issuer revenue also increased reaching GBP0.34m as the number of
admissions on AQSE grew year on year.
As the business moves forward, we anticipate AQSE and AQX will
become increasingly integrated, allowing Members to benefit from
the Group's enlarged offering.
Aquis Exchange: Continued strong growth in the core business
Aquis Exchange (AQX) is the Group's pan-European lit secondary
trading equities market. It comprises the UK MTF (AQXE) and the
French MTF serving EU markets (AQXEU).
The key performance indicators of the Aquis Exchange business
all grew during the period. Aquis Exchange's market share of all
pan-European trading was 5.8% for 2Q21 (2Q20: 4.56%) and has
averaged in excess of 6% during the period since the half year
close, reflecting this positive performance.
The Company currently has an offering in excess of 1,700 stocks
and ETFs across 15 European markets. This increase includes the
resumption of the Swiss market at the beginning of February 2021
following the accord between the UK and Switzerland. The Brexit
transition was successfully managed, both during the transition
period and thereafter, with a significant proportion of Exchange
activity now being executed on AQXEU, the Group's French MTF
serving EU markets.
Available liquidity on the exchange was at 22% in 1H21 (23% in
1H20) and it is expected this will continue to underpin future
anticipated growth.
The recognition that Aquis Exchange's toxicity is materially
lower than its competitors continues to grow amongst investment
managers and the wider market. With several market drivers pushing
market participants towards lower toxicity, the opportunity for
Aquis Exchange to attract a wider membership from across Europe and
to facilitate increased trading volumes remains significant.
Aquis Stock Exchange (AQSE): Substantial changes implemented
drive momentum
AQSE is a modern market for modern businesses, bringing positive
disruption and competition to the listed SME sector. As one of the
only two existing options for growing SMEs looking to IPO in the
UK, Aquis' vision is for AQSE to become the home for quality growth
businesses, applying core Aquis values such as transparency and
innovation.
AQSE has now delivered the four key actions which we believe
will materially enhance the market:
Action Purpose Execution
------------------------------ ---------------------- ----------------------------------------
Segmenting the market Providing appropriate Split the AQSE Growth
support throughout market into two segments:
the growth cycle * Access
* Apex
------------------------------ ---------------------- ----------------------------------------
Gaining greater institutional Broadening the pool 13% growth in institutions
and asset manager of available capital that have publicly affirmed
support for issuers support for AQSE (1H21
vs 2H20)
------------------------------ ---------------------- ----------------------------------------
Prohibiting short Protecting issuers Short selling has been
selling and investors prohibited on the Apex
market for 6 months
------------------------------ ---------------------- ----------------------------------------
Enhanced trading Supporting greater Since December 2020 and
mechanisms liquidity the introduction of innovative
Market maker scheme:
* Spreads reduced 64%
* Value traded has increased >700%
------------------------------ ---------------------- ----------------------------------------
We also entered into arrangements with Fregnan Ltd and Research
Tree Ltd. to produce and publish research on AQSE's top-tier Apex
stocks. Every Apex stock now has quantitative research on it,
provided by Fregnan, available for free through the AQSE website.
In addition, any existing fundamental research on Apex stocks is
available through a dedicated Research Tree portal.
Fourteen admissions were completed during 1H21 compared to three
during 1H20. All were well supported and there is a very strong
pipeline of high growth and 'new economy' businesses in
conversation with AQSE regarding IPO.
Revenue growth coupled with achieving the targeted cost
synergies and savings has significantly reduced the loss generated
by AQSE to just GBP0.1m for the period."
Aquis Technologies
Progress made on a number of projects
Aquis licenses its leading exchange-related technology through
its Aquis Technologies division. Aquis Technologies creates and
licenses technology for high volume, low latency trading platforms,
complex connectivity solutions and real-time trade monitoring and
surveillance systems for banks, brokers, investment firms and
exchanges.
Aquis recognises license revenue on completion of project
delivery in accordance with IFRS accounting statutes. During 1H21
progress was made on a number of projects; however, there were no
completed projects during the period. As a result, Aquis
Technologies' revenue (net of provision releases) decreased 25% to
GBP0.6m (1H20: GBP0.8m).
The successful cloud technology Proof of Concept (PoC) has
demonstrated the quality of the Aquis Technologies offering and has
resulted in a number of new exchange platform prospects. Innovation
is at the core of Aquis Technologies and we will be focused on
furthering the growth of the Technologies division, developing its
products and services to help its clients with the challenges they
face and ensuring the high-performance systems continue to be
enhanced.
Aquis Market Data
Aquis generates revenue from the sale of data derived from AQX
(AQXE & AQXEU) and AQSE to non-Member market participants.
Revenue from market data vendors increased significantly by
GBP0.7m, 187%, to GBP1.1m for the six month period compared to the
2020 equivalent. The harmonisation of Aquis Exchange (AQX) and
Aquis Stock Exchange (AQSE) data pricing has contributed to this
increase in data revenues.
Financial Review
Revenue increased 37% to GBP6.7m (1H19: GBP4.9m) and the EBITDA
profit for the half year was GBP1.5m, three times the EBITDA profit
of GBP0.5m generated in 1H20. This EBITDA profit and the profit
before tax of GBP1.0m includes GBP0.2m of income recognised from an
impairment credit per IFRS 9 consistent with the 1H20 impairment
credit. The EBITDA profit growth is mainly attributable to
increased exchange revenue and data revenue as Members'
subscriptions have risen as a result of increased trading levels.
The Group made some controlled increases in costs during 1H 2021 as
it continued to invest in personnel and technological resources and
the Group will continue to invest in the future to maintain the
business' growth momentum.
The Group's cash and cash equivalents as at 30 June 2021 were
GBP13.9 million (30 June 2020: GBP11.2 million), demonstrating its
continued focus on careful cash management.
Summary and Outlook
Our strategic goal remains to become one of the leading exchange
services groups through delivering best-in-class exchange trading
opportunities, underpinned by our commitment to first class client
service, transparency, simplicity and best-in-class technology. To
this end, our investment in R&D will help improve the trading
experience for clients, as well as improving our market position
and providing further growth and value creation for shareholders.
We continue to make significant investment in our technology, sales
and marketing activities, in particular in cloud technology, to
support our long-term growth across all activities.
Alongside this we are working to enhance our software licensing
activities and build presence internationally. We are pleased to
have made significant progress on a number of material technology
contracts post-period end that will support the second half
performance and into FY22.
Looking forward, our focus continues to be on executing on our
core growth strategy; increasing trading volumes and improving
fundraising prospects for small and mid-cap companies.
Notwithstanding the macroeconomic uncertainty, current trading is
tracking in line with market expectations for the full year.
We have built good momentum over the past few years, despite
facing numerous challenges along the way. This demonstrated the
strength of our team and our offering, and I am excited to see what
we can achieve across the next six months.
Alasdair Haynes
Chief Executive Officer
AQUIS EXCHANGE PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE
SIX MONTHSED 30 JUNE 2021
6 months ended
30/06/2021 Year ended 31/12/2020 6 months ended 30/06/2020
Note GBP'000 GBP'000 GBP'000
Income Statement
Revenue 3 6,687 11,477 4,851
Impairment
credit/(charge) 4 178 (100) 183
Administrative expenses (5,299) (9,856) (4,497)
Operating profit 1,566 1,521 537
Investment income 5 - 15 14
Depreciation and
amortisation 7,8 (543) (1,030) (522)
Net finance costs 18 (15) (35) (17)
Profit before taxation 1,008 471 12
Income tax credit - 307 -
Deferred tax - 204 -
Profit for the six
months/year 1,008 982 12
========================= ====================== ==========================
Other comprehensive
income
Items that may be
reclassified subsequently
to profit or loss:
Foreign exchange
differences on
translation of foreign
operations, net of tax 17 4 (1) 4
Other comprehensive loss for the
year 4 (1) 4
Total comprehensive profit for
the year 1,012 981 16
========================= ====================== ==========================
Earnings per share
(pence) 6
Basic
Ordinary shares 3.7 3.6 0
Diluted
Ordinary shares 3.5 3.4 0
The consolidated statement of comprehensive income has been
prepared on the basis that all operations are continuing
operations.
AQUIS EXCHANGE PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30
JUNE 2021
6 months ended Year ended 31/12/2020 6 months ended
30/06/2021 (Restated) 30/06/2020 (Restated)
Note GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Goodwill 7 83 83 -
Intangible assets 7 792 916 815
Property, plant and
equipment 8 1,315 1,579 1,612
Deferred tax asset 10 204 204 -
Trade and other
receivables 9 915 840 947
3,309 3,622 3,374
Current assets
Trade and other
receivables 9 3,696 2,924 2,742
Cash and cash
equivalents 13,860 12,268 11,182
17,556 15,192 13,924
Total assets 20,865 18,814 17,298
------------------------- ------------------------- ------------------------
Liabilities
Current liabilities
Trade and other payables 11 2,827 2,846 2,329
Non-current liabilities
Lease liabilities 18 953 995 1,092
Total liabilities 3,780 3,806 3,421
------------------------- ------------------------- ------------------------
Net assets 17,085 14,973 13,877
========================= ========================= ========================
Equity
Called up share capital 12 2,749 2,717 2,717
Share premium account 13 11,738 10,892 10,892
Other reserves 14 1,055 761 476
Treasury shares 16 (561) (490) (409)
Retained
earnings/accumulated
losses 15 2,100 1,092 197
Foreign currency
translation reserve 17 4 1 4
Total equity 17,085 14,973 13,877
========================= ========================= ========================
The notes to the financial statements on pages 6 to 16 form an
integral part of these financial statements. The interim financial
statements were approved by the board of directors and authorised
for issue on 23 September 2021 and are signed on its behalf by:
J Clelland A Haynes
Director Director
AQUIS EXCHANGE PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE
SIX MONTHSED 30 JUNE 2021
Note Foreign
Currency
Share Share Other Treasury Retained Translation
Capital Premium Reserves Shares Earnings Reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
January 2020
(Restated) 2,715 10,840 378 (328) 146 1 13,752
Profit for the
6-month
period ended
30/06/2020 12 12
Issue of
new
shares 2 52 54
Movement in share
option reserve 137 137
Movement in treasury
shares (Restated) (81) (81)
Foreign exchange
differences
on translation of
foreign operations 3 3
Balance at 30
June 2020 2,717 10,892 515 (409) 158 4 13,877
Profit for the 6 month period
ended
31/12/2020 969 969
Movement in
share
option
reserve 246 246
Movement in treasury shares (81) (81)
Foreign exchange differences
on
translation of foreign
operations (3) (3)
Post audit adjustments (35) (35)
Balance at 31
December
2020 (Restated) 2,717 10,892 761 (490) 1,092 1 14,973
Profit for the 6-month period
ended
30/06/2021 1,008 1,008
Issue of
new
shares 12,13 32 846 878
Movement in
share
option
reserve 14 294 294
Movement in
treasury
shares 16 (71) (71)
Foreign
exchange
differences
on
translation
of
foreign
operations 17 3 3
Balance at 30
June 2021 2,749 11,738 1,055 (561) 2,100 4 17,085
======== ======== ========= ========== ========= ============ ========
AQUIS EXCHANGE PLC
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX
MONTHSED 30 JUNE 2021
6 months Year 6 months
ended ended ended
30/06/2021 31/12/2020 30/06/2020
Note GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Cash generated/absorbed by
operations 19 1,215 2,130 568
Tax refunded - 308 -
Finance expense on lease liabilities 18 (15) (35) (17)
Net cash inflow from operating
activities 1,200 2,403 551
------------ ------------ ------------
Investing Activities
Recognition of intangible
assets 7 (154) (643) (311)
Purchase of property, plant
and equipment 8 (163) (115) (44)
Purchase of treasury shares 16 (71) - -
Investment in subsidiaries - (259) -
Interest received 5 - 15 14
Net cash used in / generated by
investing activities (388) (1,002) (341)
------------ ------------ ------------
Financing Activities
Proceeds from share issue 12,13 878 54 54
Principal portion of lease
liability 18 (101) (195) (98)
Net cash (used in)/ generated
by financing activities 777 (141) (44)
------------ ------------ ------------
Net increase/(decrease) in cash
and cash equivalents 1,589 1,258 167
Cash and cash equivalents at the
beginning of the period 12,268 11,011 11,011
Effect of exchange rate changes
on cash and cash equivalents 3 (1) 4
Cash and cash equivalents at the
end of the period 13,860 12,268 11,182
============ ============ ============
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS
1. Basis of preparation of half-year report
This condensed consolidated interim financial report for the
half-year reporting period beginning 1 January 2021 and ending 30
June 2021 ("interim period") has been prepared in accordance with
Accounting Standard IAS 34 Interim Financial Reporting.
The interim report does not include all the notes of the type
normally included in an annual financial report. Accordingly, this
report is to be read in conjunction with the annual report for the
year ended 31 December 2020 and any public announcements made by
Aquis Exchange PLC ("Aquis" or the "Company") during the interim
reporting period.
The accounting policies adopted are consistent with those of the
previous financial year and corresponding interim reporting
period.
2. Significant changes in the current reporting period
The financial position and performance of the Company was not
affected by any specific events and transactions during the six
months to 30 June 2021. However, it is worth noting the
following:
-- At the beginning of the year, a significant percentage of
trading of European securities moved to the Aquis European
platform, Aquis Exchange Europe SAS. The subsidiary is based in
Paris, France and is regulated by the Autorité de Co ntr ô le
Prudentiel et de Resolution (ACPR) and the Autorité des Marchés
Financiers (AMF). This followed the outcome of trade negotiations
between the UK and the European Union, which failed to result in
the acknowledgement of financial services equivalence between the
two jurisdictions. It is anticipated that financial services
equivalence is unlikely to be recognised and the majority of
trading in EU securities will remain in Paris. This has not yet had
a significant impact on the financial position or performance of
the Company, however the lack of equivalence and resulting changes
in the regulatory landscape are likely to present new challenges
and opportunities for the Company.
3. Revenue
An analysis of the Group's revenue is as follows:
6 months Year 6 months
ended ended ended
30/06/2021 31/12/2020 30/06/2020
GBP'000 GBP'000 GBP'000
Exchange Fees 4,899 7,738 3,682
Licence Fees 379 2,320 607
Issuer Fees 340 524 189
Data Vendor Fees 1,069 895 373
6,687 11,477 4,851
------------ ------------ ------------
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
4. Expected credit loss
The expected credit loss on licensing contract assets has been
calculated in accordance with IFRS 9:
GBP'000
As at 31/12/2019 411
Expected credit loss reversal for
the period (183)
---------
As at 30/06/2020 228
Expected credit loss reversal for
the period 281
---------
As at 31/12/2020 509
Expected credit loss reversal for
the period (178)
As at 30/06/2021 331
---------
5. Investment income
6 months Year ended 6 months
ended 30/06/2021 31/12/2020 ended 30/06/2020
GBP'000 GBP'000 GBP'000
Interest income on
bank deposits 0 15 14
------------------ ------------ ------------------
6. Earnings per share
6 months Year 6 months
ended ended ended
30/06/2021 31/12/2020 30/06/2020
Number of Shares ('000)
Weighted average number
of ordinary shares for
basic earnings per share 27,197 27,164 27,158
Weighted average number
of ordinary shares for
diluted earnings per
share 28,638 28,281 28,043
Earnings (GBP'000)
Profit for the period
from continued operations 1,008 982 12
Basic and diluted earnings
per share (pence)
Basic earnings per ordinary
share 3.7 3.6 0
Diluted earnings per
ordinary share 3.5 3.4 0
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
7. Intangible assets
Group
Developed
Trading
Platforms Goodwill
GBP'000 GBP'000
Cost
As at 31/12/2019 2,055 -
Additions- internally generated
(Restated) 311 83
----------- -----------
As at 30/06/2020 (Restated) 2,366 83
Additions- internally generated 332 -
----------- -----------
As at 31/12/2020 2,698 83
Additions- internally generated 154 -
As at 30/06/2021 2,852 83
----------- -----------
Accumulated amortisation
and impairment
As at 31/12/2019 1,302 -
Charge for the period 249 -
----------- -----------
As at 30/06/2020 1,551 -
Charge for the period 231 -
----------- -----------
As at 31/12/2020 1,782 -
Charge for the period 278 -
As at 30/06/2021 2,060 -
----------- -----------
Carrying amount
As at 31/12/2019 753 -
As at 30/06/2020 (Restated) 815 83
As at 31/12/2020 916 83
As at 30/06/2021 792 83
----------- -----------
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
8. Property, plant and equipment
Non-current
portion
Fixtures, of IFRS
fittings Computer 16 leased
and equipment Equipment assets Total
GBP'000 GBP'000 GBP'000 GBP'000
Cost
As at 31/12/2019 249 2,097 1,271 3,617
Additions & disposals - 44 - 44
As at 30/06/2020 249 2,141 1,271 3,661
Additions & disposals 3 70 - 73
As at 31/12/2020 252 2,211 1,271 3,734
Additions & disposals - 163 - 163
As at 30/06/2021 252 2,374 1,271 3,897
--------------- ----------- ------------ --------
Accumulated depreciation
and impairment
As at 31/12/2019 127 1,476 173 1,776
Charge for the period 25 161 87 273
As at 30/06/2020 152 1,637 260 2,049
Charge for the period 26 167 86 279
As at 31/12/2020 178 1,804 346 2,328
Charge for the period 25 142 87 254
As at 30/06/2021 203 1,946 433 2,582
--------------- ----------- ------------ --------
Carrying amount
As at 31/12/2019 122 621 1,098 1,841
As at 30/06/2020 97 504 1,011 1,612
As at 31/12/2020 74 407 925 1,406
As at 30/06/2021 49 428 838 1,315
--------------- ----------- ------------ --------
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
9. Trade and other receivables
Current
----------------------------------------
As at As at As at
30/06/2021 31/12/2020 30/06/2020
GBP'000 GBP'000 GBP'000
Trade receivables
net of impairment 2,918 2,633 2,204
Prepayments 598 279 340
Other receivables 180 12 198
3,696 2,924 2,742
------------ ------------ ------------
Non-Current
----------------------------------------
As at As at As at
30/06/2021 31/12/2020 30/06/2020
GBP'000 GBP'000 GBP'000
Trade receivables
net of impairment 690 618 729
Other receivables 225 222 218
915 840 947
------------ ------------ ------------
Trade receivables are stated net of any credit impairment
provision as set out previously in Note 3 in accordance with IFRS
9, as illustrated below:
As at
30/06/2020
As at As at
30/06/2021 31/12/2020 (Restated)
GBP'000 GBP'000 GBP'000
Gross trade receivables 3,957 3,777 3,283
Expected credit loss (349) (526) (350)
------------
Trade receivables
net of impairment 3,608 3,251 2,933
------------ ------------ ------------
Impairment includes the expected credit loss on licencing
contract assets stated in Note 4.
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
10. Deferred tax asset
A deferred tax asset was recognised in the year ended 31
December 2020, due to the Group becoming profitable for the first
time. The Group is expected to continue to be profitable in future
years, with the value of the deferred tax asset to be reassessed
annually at year end.
As at As at As at
30/06/2021 31/12/2020 30/06/2020
GBP'000 GBP'000 GBP'000
------------ ------------ ------------
Deferred tax asset 204 204 -
------------ ------------ ------------
11. Trade and other payables
As at
As at 31/12/2020 As at
30/06/2021 (Restated) 30/06/2020
Trade payables 264 263 90
Accruals 1,063 1,560 968
Social security and
other taxation 190 427 370
Deferred revenue 935 432 709
Other payables 375 164 192
------------ ------------ ------------
2,827 2,846 2,329
------------ ------------ ------------
12. Called up share capital
As at As at As at
30/06/2021 31/12/2020 30/06/2020
GBP'000 GBP'000 GBP'000
Ordinary share capital
Issued and fully paid
27,149,559 Ordinary shares of 10p
each 2,717 2,715 2,715
Issue of new shares following exercise
of 323,267 EMI share options 32 - -
Issue of new shares following exercise
of 20,137 EMI share options - 2 2
Ordinary share capital 2,749 2,717 2,717
------------ ------------ ------------
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
13. Share premium account
As at As at As at
30/06/2021 31/12/2020 30/06/2020
GBP'000 GBP'000 GBP'000
Share premium
At beginning of year 10,892 10,840 10,840
Issue of new shares following exercise
of 323,267 EMI share options 846 - -
Issue of new shares following exercise
of 20,137 EMI share options - 52 52
Share premium 11,738 10,892 10,892
------------ ------------ ------------
14. Other Reserves
GBP'000
As at 31/12/2019 (Restated) 378
Share-based payment expense for the 6-month
period ended 30/06/2020 (Restated) 137
As at 31/06/2020 (Restated) 515
Share-based payment expense for the 6-month
period ended 31/12/2020 246
As at 31/12/2020 761
Share-based payment expense for the 6-month
period ended 30/06/2020 294
As at 30/06/2021 1,055
--------
The reserves relating to share-based payments reflects the
estimated value of the approved employee share option schemes,
which include the EMI, CSOP and Restricted Share options. The
valuation of the options granted is estimated using a US binomial
or Black Scholes model. Also included in the share-based payment
reserve are the treasury shares purchased by the Trust under the
Share Incentive Plan.
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
15. Retained earnings
GBP'000
As at 31/12/2019 146
Profit for the 6-month period
ended 30/06/2020 12
As at 31/06/2020 158
Profit for the 6-month period
ended 30/12/2020 969
Post audit adjustments(1) (35)
As at 31/12/2020 (Restated) 1,092
Profit for the 6-month period
ended 30/06/2021 1,008
As at 30/06/2021 2,100
--------
(1) These relate to separate adjustments that were posted in
Aquis Stock Exchange Limited (GBP24k) and Aquis Exchange Europe SAS
(GBP11k) after the Group audit had concluded. The adjustments
affect the Group prior year retained earnings and trade payables
balances.
16. Treasury shares
Treasury shares are purchased by a Trust under the employee
Share Employee Plan. The Trust is consolidated within the Group
financial statements and the value of the shares held at the
balance sheet date is shown below.
As at
As at As at 30/06/2020
30/06/2021 31/12/2020 (Restated)
GBP'000 GBP'000 GBP'000
Share premium
At beginning of year 490 328 328
Purchase of treasury shares 71 162 81
Treasury shares 561 490 409
------------ ------------ ------------
17. Foreign currency translation reserve
The translation of the European subsidiary into the functional
currency of the group results in foreign exchange differences that
have been recognised in Other Comprehensive Income ('OCI') for the
group which have been accumulated in a separate component of equity
as illustrated below.
6 months Year 6 months
ended ended ended
30/06/2021 31/12/2020 30/06/2020
GBP'000 GBP'000 GBP'000
At the beginning of the year/period 1 4 1
Foreign exchange differences
on translation of foreign operations
recognised in OCI 3 (3) 3
At the end of the year/period 4 1 4
------------ ------------ ------------
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
18. IFRS 16 Leases
The impact on the Groups assets and liabilities, and the related effects on profit and loss, of the
Groups leasing activities
(the Group as a lessee) are detailed below.
Right of Use Asset
Property
GBP
--------------------------------- ---------
Carrying amount at 1 January
2020 1,271
Depreciation for the period (87)
Carrying amount at 30 June 2020 1,184
Depreciation for the period (86)
Carrying amount at 31 December
2020 1,098
Depreciation for the period (87)
Carrying amount at 30 June 2021 1,011
--------------------------------- ---------
Of which are:
Current 173
Non-current 838
1,011
--------------------------------- ---------
Rent deposit asset
Rent deposit
asset
GBP
--------------------------------- -------------
Carrying amount at 1 January
2020 222
Finance income on rent deposit
asset for the period 3
Carrying amount at 30 June 2020 225
Finance income on rent deposit
asset for the period 4
Carrying amount at 31 December
2020 229
Finance income on rent deposit
asset for the period 3
Carrying amount at 30 June 2021 232
--------------------------------- -------------
Of which are:
Current 7
Non-current 225
232
--------------------------------- -------------
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
Lease liability
Lease liability
GBP
------------------------------------ ----------------
Carrying amount at 1 January
2020 1,378
Finance expense on lease liability
for the period 21
Lease payments made during the
period (115)
Carrying amount at 30 June 2020 1,284
Finance expense on lease liability
for the period 21
Lease payments made during the
period (115)
Carrying amount at 31 December
2020 1,190
Finance expense on lease liability
for the period 18
Lease payments made during the
period (116)
Carrying amount at 30 June 2021 1,092
------------------------------------ ----------------
Of which are:
Current 139
Non-current 953
1,092
------------------------------------ ----------------
Net finance expense on leases
Year 6 months
6 months ended ended
ended 30/06/2021 31/12/2020 30/06/2020
GBP GBP GBP
------------------------------------ ------------------ ------------ ------------
Finance expense on lease liability 18 42 21
Finance income on rent deposit
asset (3) (7) (3)
Net finance expense relating
to leases 15 35 18
------------------------------------ ------------------ ------------ ------------
The finance income and finance expense arising from the Groups leasing activities as a lessee have been
shown net where applicable
as is permitted by IAS 32 where criteria for offsetting have been met.
Amounts recognised in profit and loss
Year 6 months
6 months ended ended
ended 30/06/2021 31/12/2020 30/06/2020
GBP GBP GBP
-------------------------------------- ------------------ ------------ ------------
Depreciation expense on right-of-use
assets (87) (173) (87)
Finance expense on lease liability (18) (42) (21)
Finance income on rent deposit
asset 3 7 3
Net impact of leases on profit
or loss (102) (208) (105)
-------------------------------------- ------------------ ------------ ------------
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
The total cash outflow for leases amounted to GBP115k in the 6
months to 30(th) June 2021.
19. Cash generated from operations
6 months
ended
30/06/2020
6 months Year
ended ended
30/06/2021 31/12/2020 (Restated)
GBP'000 GBP'000 GBP'000
Profit after tax 1,008 982 12
Adjustments for:
Taxation - (307) -
Deferred tax - (204) -
Investment revenue - (15) (14)
Amortisation and impairment of
intangible assets 278 480 249
Depreciation and impairment of
property, plant and equipment 254 550 273
Equity settled share-based payment
expense 294 393 98
Other gains/losses 39 40 (29)
Movement in working capital:
Increase in trade and other receivables (674) (1,100) (850)
Increase in trade and other payables 16 1,311 829
Cash generated/ (absorbed) by
operations 1,215 2,130 568
------------ ------------ ------------
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END
IR SELESEEFSEDU
(END) Dow Jones Newswires
September 23, 2021 02:00 ET (06:00 GMT)
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