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Defenx plc
19 September 2016
19 September 2016
Defenx PLC
("Defenx" or the "Group")
Unaudited Interim Results for the six months ended 30 June
2016
Defenx PLC (AIM:DFX), the mobile security software solutions
company, announces its unaudited interim results for the six months
ended 30 June 2016.
Financial Highlights
-- Revenue up 73% to EUR2.32m (1H15: EUR1.34m) reflecting the
positive impact of new product launches and channel partner
wins
-- Mobile platform focus continues with 69% of revenues derived
from software for mobile devices
-- Strong control of overheads with operating expenses
(excluding marketing contributions) of EUR0.71m (1H15: EUR0.39m)
39% below 2H15 predominantly due to lower staff and administrative
costs
-- EBITDA before exceptional costs of EUR0.11m (1H15: EUR0.29m)
reflects the front-loading of full year marketing contributions
into the first half of the year to drive sales that are seasonally
weighted into the second half of the year
-- The unaudited interim financial results are in line with management expectations.
Operating Highlights
-- Defenx has now sold over 3.8 million licences with over 1
million active licensed users at 30 June 2016
-- Significant progress made since AIM IPO in December 2015
launching new products, including Defenx Mobile Security Suite for
Windows 10 Phone and Defenx Cloud Backup for mobile, PC and NAS
drives
-- Eight new channel partners signed up, more than doubling the
number at IPO, significantly extending reach across the UK,
Continental Europe and the Middle East.
Post Period End
-- On 2 August 2016, Defenx acquired 95.2% of Memopal, a cloud
backup and sync company. The acquisition secures Memopal's advanced
technology, adding cloud backup & sync to the Group's existing
product portfolio, key channel partners as well as cross selling
opportunities
-- New debt facilities of, in aggregate, EUR1.20m provide
additional working capital and allow the Group to narrow the
working capital gap between the extended debtor terms customary in
its overseas markets and the shorter credit terms in the UK.
Commenting on the results, Andrea Stecconi, Chief Executive
Officer, said:
"We are pleased with the strong progress in the first half of
2016 and have delivered against our stated strategy with the
addition of new channel partners and products. The acquisition of
Memopal in August brings a significant opportunity and we look
forward to integrating it fully into our existing business to
improve and extend our offering. Based on our performance to date
and strong confirmed order book, we are confident of continuing to
deliver significant growth in revenues and profits this year in
line with market expectations."
This announcement contains inside information.
Enquiries
Defenx PLC
Andrea Stecconi - Chief Executive Officer
Philipp Prince - Chief Financial Officer 020 3769 0687
Strand Hanson Limited (Nominated and
Financial Advisor)
Richard Tulloch / Ritchie Balmer /
James Bellman 020 7409 3494
WH Ireland (Joint-Broker)
Adrian Hadden / Nick Prowting 020 7220 1666
Beaufort Securities (Joint-Broker)
Jon Belliss 020 7382 8300
IFC Advisory (Financial PR and IR)
Graham Herring / Tim Metcalfe / Heather
Armstrong 020 3053 8671
About Defenx
Founded in 2009, Defenx is a fast-growing and profitable
security software company that offers a range of products for the
mobile, PC and network security markets. Defenx security software
is priced competitively, fully featured and efficient (reduced use
of memory, processing capacity and therefore power).
A flexible marketing strategy, focused on white-label and
profit-share arrangements with distributors, telecoms companies and
hardware manufacturers, enables Defenx to compete with established
industry incumbents. Since inception, Defenx has sold over 3.8
million security software licenses, primarily in Europe, the Middle
East and Africa.
Defenx's global distribution partners currently include 3Italia,
Seagate Technology, Türk Telecom and Western Digital, amongst
others including telecoms operators, systems integrators and
original equipment manufacturers. Defenx was admitted to trading on
AIM on 3 December 2015, raising GBP2.1 million to accelerate its
growth through new channel partners and product development.
Website
www.defenx.com/company/investors
Chairman's Statement
Since releasing the 2015 annual results in April this year,
Defenx has continued to grow the business organically with the
launch of new products and by winning new channel partners.
Already in the year we have announced the following product
launches and updates:
-- Defenx Mobile Security Suite for Windows 10 Phone
-- Defenx Cloud Backup for mobile, PC and Network Attached Storage ("NAS") drives
-- New Android features: webcam protection & mic capture
-- Privacy Advisor for Android.
We have a strong pipeline of new products and enhancements aimed
at further broadening the appeal of Defenx to channel partners and
end-users.
Our new channel partners include:
-- Brigantia Partners Limited, the largest subscription partner services club in the UK
-- Itway SpA (MIL:ITW), a specialist digital solutions provider
that operates in six European countries and Dubai with reported
revenues of EUR101 million in 2015
-- Ringo.com, a Mobile Virtual Network Operator offering high
quality, innovative mobile services to consumers and small business
customers
-- MCR Media Group, a European leader in mobile value-added
services to more than 30 carriers around the world
-- Dylog Italia SpA and its subsidiary, Gruppo Buffetti SpA,
which are Italian leaders in the distribution of digital products,
services and solutions for the professional market, SMEs, and
recently, an increasing number of homeworkers through a franchise
network of more than 650 points of sale throughout Italy
-- Mandarin SpA, provider of telecommunications services in
Sicily, Italy, which has been traditionally underserved by
incumbent players, aiming to bridge the digital divide with the
best technology and infrastructure
-- InfoCert SpA, a European leader in high-tech solutions for
the dematerialisation of document processing, providing document
management and digital preservation solutions, digital signatures
and registered e-mails
-- Bizmatica SpA, a subsidiary of Econocom Group SA (EBR:ECONB),
the listed provider of B2B digital transformation services active
in various European countries, including Belgium, France, Italy,
the Netherlands, Spain and the UK.
The acquisition of Memopal Srl ("Memopal"), which completed on 2
August 2016, is a transformational deal for Defenx. The board
considers the acquisition multiple of between 5.5x and 6.6x EBITDA
(depending on the performance of the enlarged group) to represent
good value in this sector. In addition, the acquisition:
-- Broadens the Group's owned product portfolio with the
addition of proprietary cloud backup and synchronisation
technology
-- Doubles the Group's headcount, significantly increasing
internal development and customer support capacity that it would
otherwise have needed to recruit
-- Adds 700,000 end-users
-- Adds reference channel partners, notably Türk Telecom and Western Digital
-- Adds profit with the integration of Memopal expected to be
earnings enhancing after sales and cost synergies in the first full
financial year
-- Improves our short term working capital position by
internalising the perpetual license that would otherwise have cost
the Group EUR900,000.
Since completion we have made good progress integrating the
business to bring the benefits of integrated solutions to end-users
and shareholders alike.
To improve retail investor support, we are pleased to announce
that Beaufort Securities has been appointed to act as joint broker
alongside WH Ireland.
Financial Review
Group revenue grew 73% to EUR2.32m (1H15: EUR1.34m) driven by
the new product launches and channel partner wins. Mobile revenues
continued to account for around 70% of our business with the
balance from PC and Server segments. It was pleasing to see a
modest increase in average revenue per user of almost 10%.
The gross profit margin was 81.5% (1H15: 85.8%) reflecting the
increase in amortisation, charged on a straight line basis
independent of sales seasonality. Amortisation of EUR0.41m (1H15:
EUR0.17m) reflects a full period's charge for our Enterprise NAS
product plus customer integration costs and the launch of Defenx
Mobile Security Suite for Windows 10 in March 2016. As in previous
years, we expect gross profit margins to increase in the second
half of the year.
Marketing contributions, staff costs and the costs of
maintaining our AIM listing account for the majority of expenses.
Strong control of overheads resulted in operating expenses
excluding marketing contributions falling 39% compared to 2H15 to
EUR0.71m (1H15: EUR0.39m).
While sales seasonality results in a majority of Group revenue
falling into the second half, the opposite is true for marketing
contributions which are incurred in the first half to front-load
the benefit over the whole year. Marketing contributions were
EUR1.48m (1H15: EUR0.67m) reflecting the planned post-IPO
investment in developing the Defenx brand.
There has been no recruitment in the first half with staff and
consultant costs of EUR0.39m (1H15: EUR0.23m) reflecting a 32%
reduction on 2H15. The operating loss before exceptional expenses
for the Group was EUR0.30m (1H15: EUR0.12m profit).
Non-recurring expenses of EUR0.15m for legal & professional
fees in respect of the acquisition of Memopal incurred during the
period have been disclosed as exceptional.
Balance sheet and cash flow
The net book value of capitalised software development costs
increased to EUR2.93m (1H15: EUR2.32m) with the addition of Defenx
Mobile Security Suite for Windows 10 and Privacy Advisor for
Android and new Android features: webcam protection & mic
capture.
Working capital increased by EUR0.45m through the period, from a
surplus of EUR1.87m at 31 December 2015 to a surplus of EUR2.32m at
30 June 2016. A fall in trade receivables of EUR0.38m was offset by
an increase in software development payments on account of EUR0.81m
and modest reductions in other receivables of EUR0.10m and payables
of EUR0.12m.
The Group generated cash of EUR0.36m (1H15: EUR0.36m outflow)
before its investment in software development of EUR1.54m (1H15:
EUR0.42m) of which EUR0.73m has been capitalised in intangible
assets with the balance held in other debtors as work in progress.
Cash for the period declined by EUR1.18m to EUR0.16m. There was no
debt at the period end.
Since the period end, new facilities of, in aggregate, EUR1.20m
have been agreed of which EUR0.90m has been entered into and
EUR0.30m has been approved subject to certain customary conditions
being satisfied. At the time of the Memopal acquisition a EUR0.40m
term loan was secured together with an overdraft of EUR0.10m that
has been approved subject to security being provided; around
EUR0.25m of this will be used to accelerate shareholder loan
repayments reducing the interest charge to the Group with the
EUR0.25m balance used to provide working capital to the Group.
An invoice discounting facility, initially for EUR0.20m, has
also been approved subject to signing, which together with a new
supply chain finance facility of EUR0.50m, will allow the Group to
narrow the working capital gap between the extended debtor terms
customary in its overseas markets and its shorter credit terms.
Outlook
Trading conditions for the Group remain positive driven by the
launch of new products and the added market reach from the
expanding channel partner relationships. Consequently, the board is
confident that 2016 will show continued growth in revenue and
profit in line with market expectations.
The acquisition of Memopal represents a major milestone for the
Group. I remain confident that the Group is on track and that we
will see significant profitable growth in the short, medium and
longer term.
Anthony Reeves
Chairman
19 September 2016
Unaudited Interim Condensed Consolidated Statement of
Comprehensive Income
6 months 6 months Year ended
to to
30 June 30 June 31 December
2016 2015 2015
Unaudited Unaudited Audited
Note EUR EUR EUR
Revenue 4 2,320,483 1,343,719 4,489,557
Cost of sales 6 (428,329) (190,140) (512,168)
---------------------- ---------------------- ----------------------
Gross profit 1,892,154 1,153,579 3,977,389
Sales, marketing and
administrative expenses 6 (2,188,543) (1,036,272) (2,998,190)
--------------------- ---------------------- ---------------------
Operating (loss)/profit
before exceptional expenses (296,389) 117,307 979,199
Exceptional expenses 6 (153,792) - (614,192)
--------------------- ---------------------- ---------------------
(Loss)/profit from operations (450,181) 117,307 365,007
Finance income - 35 37
Finance expense (960) (2,092) (2,787)
---------------------- ---------------------- ----------------------
(Loss)/profit before
tax (451,141) 115,250 362,257
Tax expense (7,157) (8,810) (170,339)
---------------------- ---------------------- ----------------------
(Loss)/profit for the
period (458,298) 106,440 191,918
Exchange gains arising - - -
on the translation of
foreign subsidiaries
---------------------- ---------------------- ----------------------
Total comprehensive (loss)/profit
for the period (458,298) 106,440 191,918
=========== =========== ===========
(Loss)/earnings per share
Basic 7 (EUR0.075) EUR0.027 EUR0.042
Diluted 7 (EUR0.066) EUR0.025 EUR0.039
Unaudited Interim Condensed Consolidated Statement of Financial
Position
6 months 6 months 31 December
ended 30 ended 30 2015
June 2016 June 2015 Audited
Unaudited Unaudited
Note EUR EUR EUR
Non-current assets
Intangible assets 8 2,929,449 2,322,683 2,607,400
---------------------- ---------------------- ----------------------
Current assets
Trade and other receivables 9 3,628,996 1,749,044 3,305,604
Cash and cash equivalents 154,855 143,542 1,333,869
---------------------- ---------------------- ----------------------
3,783,851 1,892,586 4,639,473
---------------------- ---------------------- ----------------------
Total assets 6,713,300 4,215,269 7,246,873
=========== =========== ===========
Current liabilities
Trade and other payables (1,313,124) (1,344,546) (1,434,431)
---------------------- ---------------------- ----------------------
Total liabilities (1,368,299) (1,344,546) (1,434,431)
=========== =========== ===========
Net assets 5,400,176 2,870,723 5,812,442
=========== =========== ===========
Capital and reserves
Called up share capital 145,004 106,372 145,004
Share premium 4,051,322 1,294,056 4,051,322
Merger reserve 695,212 695,212 695,212
Share based payment
reserve 106,375 - 60,343
Retained earnings 402,263 775,083 860,561
Foreign exchange reserve - -
---------------------- ---------------------- ----------------------
Total equity attributable
to equity holders of
the parent company 5,400,176 2,870,723 5,812,442
=========== =========== ===========
Unaudited Interim Condensed Consolidated Statement of Changes in
Equity
Share Share Foreign
based
Share premium Merger payment Retained exchange
capital account reserve reserve earnings reserve Total
EUR EUR EUR EUR EUR EUR EUR
As at 1
January
2016 145,004 4,051,322 695,212 60,343 860,561 - 5,812,442
Share based
payments - - - 46,032 - - 46,032
Loss for the
period (458,298) (458,298)
----------------- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------
As at 30
June
2016
(unaudited) 145,004 4,051,322 695,212 106,375 402,263 - 5,400,176
========== ========== ========== ========== ========== ========== ==========
As at 1
January
2015
(restated) 90,903 580,373 678,610 - 660,144 38,179 2,048,209
Change in
functional
currency 1,465 11,613 16,602 - 8,499 (38,179) -
Profit for
the period - - - - 106,440 - 106,440
Shares
issued 14,004 702,070 - - - - 716,074
----------------- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------
As at 30
June
2015
(unaudited) 106,372 1,294,056 695,212 - 775,083 - 2,870,723
========== ========== ========== ========== ========== ========== ==========
As at 1
January
2015
(restated) 90,903 580,373 678,610 - 660,144 38,179 2,048,209
Change in
functional
currency 1,465 11,613 16,602 - 8,499 (38,179) -
Profit for
the year - - - - 191,918 - 191,918
Shares
issued 52,636 3,459,336 - - - - 3,511,972
Share based
payments - - - 60,343 - - 60,343
----------------- ----------------- ----------------- ----------------- ---------------- ----------------- -----------------
As at 31
December
2015
(audited) 145,004 4,051,322 695,212 60,343 860,561 - 5,812,442
========== ========== ========== ========== ========== ========== ==========
Unaudited Interim Condensed Consolidated Cash Flow Statement
6 months 6 months Year ended
ended 30 ended 30 31 December
June 2016 June 2015 2015
Unaudited Unaudited Audited
EUR EUR EUR
Cash flows from operating
activities
Loss for the period after
taxation (458,298) 106,440 191,918
Adjustments for:
Income tax 7,157 8,810 170,339
Net interest expense 960 - 2,750
Amortisation of intangible
assets 407,949 173,535 476,623
Share based payments expense 46,032 - 60,343
--------------------- ---------------------- ----------------------
Operating cash flows before
movements in working capital 3,800 288,785 901,973
(Increase)/decrease in
trade receivables 378,158 (709,506) (1,809,552)
(Increase)/decrease in
other receivables (701,550) - (456,513)
Increase/(decrease) in
trade and other payables (113,343) (2,173) 177,521
Increase/(decrease) in
deferred revenue (14,156) 65,500 169,138
--------------------- ---------------------- ----------------------
(450,891) (646,179) (1,919,406)
Interest paid (960) - (2,787)
Tax paid (963) - (1,295)
--------------------- ---------------------- ----------------------
Net cash flow from operating
activities (449,014) (357,394) (1,021,515)
Investing activities
Investment in intangible
assets (730,000) (421,133) (1,351,000)
Interest received - - 37
--------------------- ---------------------- ----------------------
Net cash used in investing
activities (730,000) (421,133) (1,350,963)
Financing activities
Net proceeds from issue
of share capital - 716,073 3,511,972
--------------------- ---------------------- ----------------------
Net cash from financing
activities - 716,073 3,511,972
--------------------- ---------------------- ----------------------
Net increase in cash and
cash equivalents (1,179,014) (62,454) 1,139,494
Cash and cash equivalents
at beginning of period 1,333,869 205,996 205,995
Effect of foreign exchange
translation on cash and
cash equivalents - - (11,620)
--------------------- ---------------------- ----------------------
Cash and net cash equivalents
at end of period 154,855 143,542 1,333,869
=========== =========== ===========
Notes to the Unaudited Interim Condensed Consolidated Financial
Statements
1. General information
Defenx PLC is a public limited company incorporated in England
and Wales, registration number 08993398, which is quoted on AIM.
Its principal activity is the design and sale of software solutions
for the mobile, PC and network that provide privacy and security
for an online world. Management and control is exercised from the
UK and its main countries of operation are Italy and
Switzerland.
2. Basis of preparation
The unaudited interim condensed consolidated financial
statements for the six months ended 30 June 2016 have been prepared
in accordance with IAS 34 Interim Financial Reporting and do not
constitute statutory financial statements. The unaudited interim
condensed consolidated financial statements do not include all the
information and disclosures required for a complete set of IFRS
financial statements, and should be read in conjunction with the
Group's annual financial statements as at 31 December 2015.
However, selected explanatory notes are included to explain events
and transactions that are significant to an understanding of the
changes in the Group's financial position and performance since the
last financial statements.
These unaudited interim financial statements were authorised for
issue by Defenx's Board of Directors on 16 September 2016.
3. Accounting policies
There have been no changes to the accounting policies and
methods of computation in the unaudited interim condensed
consolidated financial statements for the six months ended 30 June
2016 as compared with the Group's most recent annual financial
statements as at 31 December 2015.
4. Segmental analysis
The Group currently has three reportable product segments:
Mobile, PC and NAS, which reflect the three separate product
categories for which software is developed and sold. The Group does
not analyse costs or assets other than intangible assets by
segment. The Group does not analyse costs or assets by geographical
region.
Revenue by product segment and geographic market (based on
customer location) for the Group is as follows:
6 months 6 months Year ended
ended 30 ended 30 31 December
June 2016 June 2015 2015
Unaudited Unaudited Audited
EUR EUR EUR
Revenue by product category
Mobile 1,608,621 982,662 3,197,934
PC 644,000 331,630 1,252,544
NAS 16,291 14,439 25,145
Other 51,571 14,988 13,934
---------------------- ---------------------- ----------------------
2,320,483 1,343,719 4,489,557
=========== =========== ===========
Revenue by geographic market
(customer location)
Europe (EU including the
UK) 1,890,044 1,098,774 3,725,222
Europe (Non-EU) 413,113 230,506 739,190
Other 17,326 14,439 25,145
---------------------- ---------------------- ----------------------
2,320,483 1,343,719 4,489,557
=========== =========== ===========
Non-current assets (capitalised development costs) by product
segment for the Group are as follows:
6 months 6 months Year ended
ended 30 ended 30 31 December
June 2016 June 2015 2015
Unaudited Unaudited Audited
EUR EUR EUR
Non-current assets
Mobile 1,009,226 703,214 394,311
PC - - -
NAS 1,537,723 1,618,828 1,747,256
Other 382,500 - 465,833
---------------------- ---------------------- ----------------------
Total 2,929,449 2,322,042 2,607,400
=========== =========== ===========
5. Seasonality
The Group's revenue generated by and marketing contributions
paid to channel partners are subject to seasonal trends.
The larger proportion of the annual marketing contributions
arise in the first half of the year to support channel partners who
in turn generate higher sales in the second half of the year driven
by the back-to-school market, annual hardware release cycles and
Christmas trading. This will typically lower revenues and profits
for the first half of the year. The Group seeks to mitigate the
seasonal impact by incentivising sales in the first half of the
year.
For the 12 months ended 30 June 2016, Group revenue was EUR5.47m
(12 months ended 30 June 2015: EUR2.87m) and marketing
contributions were EUR2.13m (12 months ended 30 June 2015:
EUR1.18m).
6. Loss/profit from operations
6 months 6 months Year ended
ended 30 ended 30 31 December
June 2016 June 2015 2015
Unaudited Unaudited Audited
The operating loss is stated EUR EUR EUR
after charging:
Cost of sales
Amortisation of intangible
assets 407,949 173,535 476,623
=========== =========== ===========
Sales, marketing and administrative
expenses
Marketing contributions 1,483,423 646,391 1,451,965
Staff costs 327,424 162,018 691,358
Auditors' remuneration
- audit services 20,100 5,456 29,237
Auditors' remuneration
- non-audit Services 1,915 - 145,709
Share based payment expense 46,032 - 60,343
Bad debt expense 753 - 69,485
Lease payments - land and
buildings 17,451 13,950 29,588
Net foreign exchange (gains)/losses 23,313 (2,381) 34,443
=========== =========== ===========
Exceptional expenses
Costs in respect of the
AIM admission - - 614,192
Legal & professional fees 153,792 - -
in respect of the acquisition
of Memopal Srl
=========== =========== ===========
7. Loss/earnings per share (EPS)
Basic EPS amounts are calculated by dividing the profit for the
period attributable to ordinary equity holders of Defenx by the
weighted average number of Ordinary Shares outstanding during the
period.
Diluted EPS amounts are calculated by dividing the profit
attributable to ordinary equity holders of Defenx by the weighted
average number of ordinary shares outstanding during the period
plus the weighted average number of Ordinary Shares that would be
issued on conversion of all the dilutive deferred shares, options
and warrants into Ordinary Shares.
The following reflects the income and share data used in the
basic and diluted EPS computations:
6 months 6 months Year ended
ended 30 ended 30 31 December
June 2016 June 2015 2015
Unaudited Unaudited Audited
EUR EUR EUR
(Loss)/profit attributable
to ordinary equity holders
of the Defenx for basic
earnings and as adjusted
for the effects of dilution (458,298) 106,440 191,918
=========== =========== ===========
Weighted average number
of Ordinary Shares for
basic earnings per share 6,098,912 3,898,282 4,549,653
Effect of dilution from
deferred shares 300,000 300,000 300,000
Effect of dilution from
share options and warrants 526,614 - 86,571
---------------------- ---------------------- ----------------------
Weighted average number
of Ordinary Shares for
basic earnings per share
adjusted for the effect
of dilution 6,925,526 4,198,282 4,936,224
=========== =========== ===========
There have been no other relevant transactions involving
ordinary shares or potential Ordinary Shares since 31 December 2015
other than in respect of the post period end acquisition of Memopal
Srl as disclosed in note 10 below.
8. Intangible Assets
The Group's intangible assets all relate to capitalised software
development costs. There were no Intangible assets in the statement
of financial position of Defenx.
Group Mobile NAS Other Total
EUR EUR EUR EUR
Cost
At 1 January 2016 648,979 2,095,351 500,000 3,244,330
Additions 730,000 - - 730,000
---------------------- ---------------------- ---------------------- ----------------------
At 30 June 2016 1,378,979 2,095,351 500,000 3,974,330
=========== =========== =========== ===========
At 1 January 2015 298,501 1,583,210 - 1,881,711
Change in
functional
currency 10,979 641 - 11,620
Additions 545,154 218,040 - 763,194
---------------------- ---------------------- ---------------------- ----------------------
At 30 June 2015 854,634 1,801,891 - 2,656,525
=========== =========== =========== ===========
At 1 January 2015 298,501 1,583,210 - 1,881,711
Change in
functional
currency 10,979 641 - 11,620
Additions 339,500 511,500 500,000 1,351,000
---------------------- ---------------------- ---------------------- ----------------------
At 31 December
2015 648,979 2,095,351 500,000 3,244,331
=========== =========== =========== ===========
Accumulated
depreciation
At 1 January 2016 254,672 348,093 34,167 636,932
Charge for the
period 115,081 209,535 83,333 407,949
--------------------- ---------------------- ---------------------- ----------------------
At 30 June 2016
(unaudited) 369,753 557,628 117,500 1,044,881
=========== =========== =========== ===========
At 1 January 2015 99,500 60,807 - 160,307
Charge for the
period 51,920 121,615 - 173,535
--------------------- ---------------------- ---------------------- ----------------------
At 30 June 2015
(unaudited) 151,420 182,422 - 333,842
=========== =========== =========== ===========
Net book value
At 30 June 2016
(unaudited) 1,009,226 1,537,723 382,500 2,929,449
=========== =========== =========== ===========
At 30 June 2015
(unaudited) 703,214 1,619,469 - 2,322,683
=========== =========== =========== ===========
At 31 December
2015 (audited) 394,307 1,747,258 465,835 2,607,400
=========== =========== =========== ===========
The intangible assets booked represent qualifying expenditure on
the development of software for resale less accumulated
amortisation and impairment costs. The carrying value of these
intangible assets is tested for impairment on a half yearly basis,
or when there are indications that the value of the assets might be
impaired.
The directors have assessed development projects' individual net
present value against forecasts of future sales of the related
products, unit sales prices and costs over a five-year period. No
sales beyond five years have been included in the calculations. The
impairment tests are sensitive to changes in these forecasts and
changes could result in impairment; however, the varying bases
indicate a net present value in excess of the carrying value of the
intangible assets at the balance sheet date.
9. Trade and other receivables
6 months 6 months Year ended
ended 30 ended 30 31 December
June 2016 June 2015 2015
Unaudited Unaudited Audited
EUR EUR EUR
Gross trade receivables 2,722,292 1,663,670 3,099,697
Provision for impairment (271,113) (219,787) (270,360)
---------------------- ---------------------- ----------------------
Net trade receivables 2,451,179 1,443,883 2,829,337
Prepayments and accrued
income 49,741 289,344 162,191
Payments on account 1,128,076 15,817 314,076
---------------------- ---------------------- ----------------------
Total receivables 3,628,996 1,749,044 3,305,604
=========== =========== ===========
Provisions for impairment
Opening balance (270,360) (417,510) (417,354)
Utilised during the period - 197,723 200,193
Net increase during the
period (753) - (53,199)
---------------------- ---------------------- ----------------------
Closing balance (271,113) (219,787) (270,360)
=========== =========== ===========
10. Events after the reporting date
On 2 August 2016, Defenx acquired 95.2% of Memopal Srl, a cloud
backup and sync company for a total consideration of up to
EUR1.78m, of which EUR0.38m is deferred. The initial consideration
of EUR1.40m was satisfied by EUR0.44m in cash plus interest charged
at 8% per annum payable to the sellers in equal instalments over a
period of 24 months and the issue of 621,394 new ordinary shares of
1.8p in Defenx. The deferred consideration of up to EUR0.38m will
be satisfied by the issue of up to an additional 238,035 new
ordinary shares, subject to certain performance thresholds of the
enlarged group being met for the year ended 31 December 2017.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR VVLFFQKFFBBQ
(END) Dow Jones Newswires
September 19, 2016 02:00 ET (06:00 GMT)
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