TIDMGLAN

RNS Number : 2150N

Glantus Holdings PLC

29 September 2021

Glantus Holdings Plc

Maiden Interim Report and accounts

For the six months ended 30 June 2021

Glantus Holdings Plc ("Glantus" or "Company" or "Group") is pleased to announce its maiden interim results for the six months to 30 June 2021.

Glantus is a growing player in the global Accounts Payable Automation (APA) market providing automation and recovery solutions through its inhouse developed software products. Its main markets are EMEA and US.

Highlights

Performance in line with Board expectations for the period

   --      Financial Highlights 

o Adjusted EBITDA of EUR1.2m up by 100% (H1 2020: EUR0.6m)

   o  Revenue of EUR4.3m up by 5%                    (H1 2020 EUR4.1m) 
   o  Gross Profit of EUR3.4m up by 10%             (H1 2020 EUR3.1m) 
   --      Operational Highlights 

o Successful IPO on AIM in May 2021 raising GBP10m for the Company.

o Continued enhancement of product offerings.

o COVID - business continues to operate remotely with no adverse effect on operational or service delivery to customers.

   --      Post period end highlights 

o Acquisition of Technology Insight Corporation, a Boston based software solution provider for accounts payable (AP) within large, often global, enterprises. With annual recurring subscription revenue of $2.5m and recurring transactional revenues of $1.4m in the US market, the acquisition enhances Glantus' capabilities in this important market.

   --      Outlook 

o Glantus expects continued growth through 2021 from both existing clients and addition of new clients.

o Strong go to market strategy based on enhanced product offering.

o Partnership strategy will deliver results in 2022.

o Continue to grow our acquisition pipeline.

Maurice Healy, CEO, commented:

"2021 has been a very exciting period for Glantus with admission to AIM in May followed by the acquisition of Technology Insight Corporation in July.

Glantus operates in an expanding AP market. Having developed a unique range of products and services, with a proven need, we are uniquely positioned to become the dominant player. The combination of our organic growth strategies and strategic acquisitions heralds a strong future for our Company"

Company Contact Information

Glantus Holdings Plc +353 1 8895300

Maurice Healy, Chief Executive Officer

ir@glantus.com

Grainne McKeown, Chief Financial Officer

Arden Partners Plc

+44 20 7614 5900

Ruairi McGirr / Richard Johnson (Corporate)

Simon Johnson (Broking)

Flagstaff Strategic and Investor Communications

Tim Thompson

                                                  +   44 7710 718 649 

Mark Edwards

Fergus Mellon

glantus@flagstaffcomms.com

Share listing

Listed on AIM

   TIDM                   GLAN 
   ISIN                      IE00BNG2V304 

A copy of these interim financial statements is available on the investor section of the Company's website at www.glantus.com

Interim results presentation

Maurice Healy CEO and Grainne McKeown CFO will provide a live presentation relating to Glantus 2021 Interim Results via the Investor Meet Company platform on 5 October 2021 at 4pm BST.

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9am the day before the meeting or at any time during the live presentation.

Investors can sign up to Investor Meet Company for free and add to meet Glantus via:

https://www.investormeetcompany.com/glantus-holdings-plc/register-investor

Chief Executive Officers Review

Overview

We are delighted to report our first set of interim results since our admission to AIM in May 2021.

Glantus has delivered a strong performance in line with expectations over the six months to 30 June 2021 ("H1-21") and the results reflect the continued focus by management and strategic decisions made to ensure revenue growth and importantly EBITDA growth. These results are particularly impressive given that during the same period we had a successful admission to AIM on May 11(th) which raised GBP10m for the Company providing funds to invest in organic and acquisitive growth.

In addition, Glantus appointed to the Board 3 Non-Executive directors, Barry Townsley (Chairman), Tom Price and Diane Gray-Smith, who bring a wealth of knowledge and experience and they will assist in the strategic direction of Glantus over the coming years.

Glantus has continued to hit major milestones in its ambitious growth plan throughout the first half of the year, delivering on the expectations set during its successful IPO process.

Glantus is a growing player in the global Accounts Payable Automation (APA) market. APA is estimated to be worth $2.5 Billion in 2021 and is expected to reach $4.47 Billion by 2026, growing at a CAGR of 12.3%[1].

Demand continues to grow for APA products and services such as Purchase-to-Payment automation, statement reconciliation, credit-recovery automation, data optimisation, improved security and fraud detection and real time supplier analysis. Glantus has developed technologies to meet the growing demand for digitisation, fraud/risk management and real-time, error-free AP processes. This combination of software innovation and rising global demand will drive increasing opportunities for Glantus in this lucrative market.

Events since the IPO and outlook

Since the IPO, Glantus has completed the acquisition of Technology Insights Corporation (TIC). This is an earnings-accretive acquisition, delivering immediate earnings growth and offering a variety of synergistic opportunities.

TIC is a software solution provider for accounts payable within large global enterprises. It has been trading for over 20 years and has its own IP. TIC has recurring revenues of $2.5m and transactional revenues of $1.4m. It is headquartered in Boston MA and provides its solutions across the US. TIC's know-how around AP duplicate payments and analytics is of considerable benefit to Glantus. The expansion of a US technical resource team enhances the Glantus Technical Support, pre-sales capabilities, and implementation processes in the important US market.

TIC Customer Base

   --      90+ Consolidated enterprise customer base 
   --      35 Global customers with the same profile as Glantus 
   --      $500m average spend 

TIC Revenue Type

   --      $3.9m ARR 

o $2.5m Subscription

o $1.4m Transactional

-- Glantus, whose revenues are in inverse proportion to TIC's, bringing a balance to the combined group's subscription and transactional revenues

TWO-WAY UPSELLING OPPORTUNITIES

TIC Acquisition brings exciting opportunities to accelerate our organic growth within both existing customer bases.

Technology Insights

-- Clients have long-required more capability and a more integrated solution including statement reconciliation and contract compliance

Glantus

   --      Recognised need for more advanced AP analytics based on customer feedback 

Within the Glantus customer base, we have long recognised the need for more advanced AP analytics based on customer feedback. The TIC experience and know-how over 20 years enhances our offering in this space and management expects strong demand from the existing customer base in deploying the advanced analytics and duplicate payment capture capabilities of the TIC product.

TIC clients have long required more capability and a more integrated solution, including products available from the Glantus product offering such as statement reconciliation, data optimisation and AP automation.

The opportunity and the challenge for management over the next 18 months is to maximise sales into the combined customer base.

New Business

Attracting new customers post the acquisition begins with deploying a new go-to-market strategy for the combined offering. Glantus is changing the approach from leading with transactional revenues to leading with subscription revenues. This will involve a re-branding of our combined IP into a new product portfolio consisting of :

Ø Dupli Shark

Ø Duplicate payment detection and recovery. A.I. fuelled payment error discovery is limitless, continuous, and spans across all your systems. Add control to spend, vendor and expense analysis

Ø Statement Shark

Ø Reconciling vendor statements to AP transactional data to uncover overpayments, open credits, missing invoices and discrepancies. Spend your time solving, not matching

Ø Docu Shark

Ø Automated workflows to optimize P2P matching, approval and posting processes driving efficiency and unlocking insights. Start with data, instead of data entry, to amplify process automation

Ø Recovery Shark

Ø Identify and expediate the recovery of unclaimed credits from vendor statements. Powers the detection and collection of credits with AI to put cash, not keying, into the hands of the AP team

The first three products are software, subscription and/or licence sales. Recovery Shark is the current transactional service which we will continue to offer. The fulfilment of this offering is automated through our own software products and continues the trend of reducing the cost of delivering this service.

Management believes that while leading with the subscription sale products will in the short term reduce the recognised quarterly revenues, it will increase long-term recurring revenues as well as the valuation of the business.

Integration update

Since the acquisition in July, and to facilitate the integration of TIC, many changes have been made to the structure of the organisation.

Andrea Wilkinson has been appointed SVP Americas and Selman Gonzalez has been appointed SVP Sales Americas. Together, Andrea and Selman have restructured all departments in the US.

The sales structure has now been redrafted and is geographically focused with sales, account management and lead generation being done in three US regions; East, Central and West.

Operations have been fully integrated with the implementation of software solutions and the delivery of transactional revenues being completed by one team, which is now headed up by the newly appointed head of operations US, Herpreet Kaloti.

There have been one-off costs to this integration predominantly from redundancies which will be incurred in H2-21.

In EMEA, the TIC team has integrated well and enhanced our sales capabilities in the region. Operationally we have successfully re-trained some staff on the implementation of the new products.

Partnerships

The Glantus Partner Recruitment campaign continues to be developed on the intelligence gathered following key market sector research and partner type evaluation undertaken during H1-21.

Over the past quarter Glantus has commenced targeted campaigns and created an active pipeline of target partner companies. Completed partner agreements during H1-21 include Iris Software Group, Triangular World and DuCharme McMillen & Assoc (DMA). Further partner agreements in H2-21 include Trintech (Adra) and VAT IT Reclaim.

Glantus is currently creating a specific partnership framework around our latest software products (following the acquisition of TIC) to further benefit the partnership program. Positive interest and feedback from both existing and new prospective partners in this program are enabling Glantus to focus channel sales on our latest AP recovery, automation and analytics data products.

Acquisitions

Glantus plans to continue an aggressive but thoughtful acquisition strategy and is identifying specific target firms that may be under-recognized in the industry but offer high value in AP.

Management believes the most attractive assets for Glantus are likely to have the following criteria in common:

   --      Technology enabled AP services. 
   --      Visibility of revenue retention and net recurring revenue. 

-- Niche solutions which are known in specific industries with narrow and high value economic buyers. These solutions offer an overall halo effect post integration

Following the successful acquisition and integration of TIC, management continues to actively engage with potential targets which fit our criteria above (both in EMEA and the US) in line with this strategy.

COVID

The Company has demonstrated a clear ability to run the business remotely from a technical and operational standpoint. In 2020 we experienced some slowdown in closing new business sales due to general global uncertainty. While there was some exposure to the travel and hospitality sectors, the Board's view is that the Groups' broad customer base is well capitalised to withstand the medium term impacts of reduction in revenue from any one sector.

The Company continues to monitor the government guidelines in all countries it operates in and is taking all safety precautions necessary to ensure the continued wellbeing of its customers and employees. All employees continue to work remotely and a return to workplace plan in line with country guidelines is being implemented.

Glantus Risk Management

The Risk Committee reporting to the Board of Directors has, as its sole and exclusive function, responsibility for the oversight and practices of the Company's global operations and oversight of the operation of the Company's global risk management framework.

The Risk Committee continually reviews and evaluates risks within the business and assesses our requirements to manage and mitigate the risks that could impact the business. Very good engagement in governance and risk management is applied throughout the business. The approach to risk is based on the Glantus standards and controls underpinned by ISO standards 9001, 27001, 27701. Glantus also complies with the QCA Code of Corporate Governance. All these standards have controls, and the common denominator is to identify, review and mitigate risk. As the potential for data breaches is becoming more prominent on a global scale, there is a strong focus on transfer of data, data privacy, IT infrastructure and staff training.

External independent audit of the Glantus integrated management system demonstrates the capability to meet intended quality, security and privacy outcomes with very strong engagement.

Competence management for the Data Protection Officer qualifications shows Glantus' commitment to privacy management in satisfying the needs for providing internal expertise in privacy management.

The security and privacy are well established into operational processes, with the completion of multiple, Data Privacy Impact Assessment's demonstrating prompt action in reviewing privacy management for new or proposed changes of processing.

Audit of IT management shows very good progress in the planning and execution of the IT strategy and the improvement of the work environment and supporting infrastructure, including security and resilience of systems and services provided to internal and external users.

Financial Review

We are pleased to report strong growth in all key financial metrics:

Revenues

Total revenue increased by 5% to EUR4.3m (H1-20: EUR4.1m) with growth in both recurring and non-recurring revenue streams.

 
                           Six months    Six months     Year ended 
                                to 30    to 30 June    31 December 
                                 June 
                                 2021          2020           2020 
                             EUR '000      EUR '000       EUR '000 
 Recurring Revenue              3,776         3,668          7,532 
 Non-recurring revenue            486           385            639 
 Reported revenue               4,262         4,053          8,171 
------------------------  -----------  ------------  ------------- 
 

Recurring revenue is the revenue that annually repeats either under contractual subscription or predicable transactional billing. Subscription revenue of EUR2.5m is continuing to grow demonstrating a sustainable growth trend underpinning future revenue forecasts. Total subscription contracted value is EUR4.9m with average contract length of 22months. Subscription churn remains very low at 4%.

Gross Profit

Gross profit increased by 10% to EUR3.4m (H1-20: EUR3.1m) which reflects the full benefit of the significant actions taken in the latter half of 2020 to implement operational efficiencies in the acquired business of JPD Financial and resulting direct labour cost reductions.

Adjusted EBITDA

Management has presented the performance measure 'adjusted EBITDA' as it monitors this performance measure at a consolidated level, and the Board considers that this metric provides the best measure of assessing underlying trading performances.

Adjusted EBITDA is calculated by adjusting profit before taxation to exclude impact of net finance costs, depreciation, amortisation, share based payment charges and exceptional items.

 
                                   Six months   Six months     Year ended 
                                        to 30        to 30    31 December 
                                         June         June 
                                         2021         2020           2020 
                                     EUR '000     EUR '000       EUR '000 
-------------------------   -----------------  -----------  ------------- 
 Operating (Loss)/profit              (1,111)        (310)            473 
 Amortisation                             318          213            482 
 Depreciation                             100           85            237 
 Exceptional Items                      1,883          570            794 
 Share Based payments                       -           62             91 
 Other Income                               -          (7)          (282) 
 
 Adjusted EBITDA                        1,190          613          1,795 
--------------------------  -----------------  -----------  ------------- 
 
 Adjusted EBITDA %                      27.9%        15.1%          22.0% 
 

Adjusted EBITDA increased by 100% to EUR1.2m (H1-20: EUR0.6m) reflecting growth in revenue and significant operational cost efficiencies both in automation of processes and general overhead efficiencies implemented in 2020.

The exceptional items include acquisition costs, post-acquisition restructuring costs and IPO admission costs (see Note 5).

Total costs for AIM admission totalled EUR1.8m - EUR0.9m at P&L exceptional cost and EUR0.9m adjusted to Share premium in line with IFRS.

Earnings per Share

In preparation for admission to AIM a capital restructuring was implemented in April 2021 with a 25 million bonus share issue. Weighted average of ordinary shares has been adjusted to reflect the bonus share issue (see Note 7)

 
                                                Six months        Six months          Year ended 
                                                     to 30             to 30         31 December 
                                                      June              June 
                                                      2021              2020                2020 
-------------------------------------   ------------------  ----------------  ------------------ 
 Adjusted Earnings                                   1,190               613               1,795 
 
                                                    Number            Number              Number 
                                                      '000              '000                '000 
-------------------------------------   ------------------  ----------------  ------------------ 
 Weighted average number of ordinary 
  shares                                            29,038            26,275              26,275 
 
                                                      Cent              Cent                Cent 
-------------------------------------   ------------------  ----------------  ------------------ 
 Adjusted EPS                                         0.04              0.02                0.07 
 

Outlook

With an expanding customer base, a growing acquisition pipeline and market-ready products, management views the outlook for Glantus with increased optimism and excitement.

Maurice Healy

Chief Executive Officer

September 29 2021

Financial Report

 
 CONSOLIDATED STATEMENT OF COMPREHENSIVE 
  INCOME 
                                                      Six months   Six months     Year ended 
                                                           to 30        to 30    31 December 
                                                            June         June 
                                                            2021         2020           2020 
                                                       Unaudited    Unaudited        Audited 
                                        Note            EUR '000     EUR '000       EUR '000 
  Revenue                                3                 4,262        4,053          8,171 
  Cost of sales                                            (850)        (962)        (1,586) 
-------------------------------------  -----  ------------------  -----------  ------------- 
  Gross profit                                             3,412        3,091          6,585 
  Administrative expenses                                (2,222)      (2,478)        (4,790) 
  Exceptional Items                      5               (1,883)        (570)          (794) 
  Share Based Payments                   6                     -         (62)           (91) 
  Amortisation                                             (318)        (213)          (482) 
  Depreciation                                             (100)         (85)          (237) 
  Other income                                                 -            7            282 
-------------------------------------  -----  ------------------  -----------  ------------- 
 
  Operating (loss)/profit                                (1,111)        (310)            473 
 
  Finance costs                                            (345)        (359)          (674) 
-------------------------------------  -----  ------------------  -----------  ------------- 
  Loss on ordinary activities before 
   taxation                                              (1,456)        (669)          (201) 
  Income tax                                                   7         (47)          (111) 
-------------------------------------  -----  ------------------  -----------  ------------- 
  Loss for the financial period                          (1,449)        (715)          (312) 
  Other comprehensive loss for the 
   period                                                      -          (5)            (5) 
-------------------------------------  -----  ------------------  -----------  ------------- 
  Total comprehensive loss for the 
   period attributable to the owners 
   of the group                                          (1,449)        (721)          (317) 
-------------------------------------  -----  ------------------  -----------  ------------- 
 
 
  Earnings/(loss) per share - basic 
   and diluted (cent)                    7                (0.05)       (0.03)         (0.01) 
-------------------------------------  -----  ------------------  -----------  ------------- 
 
 
 
 CONSOLIDATED STATEMENT OF FINANCIAL POSITION 
                                                     30 June     30 June   31 December 
                                                        2021        2020          2020 
                                                   Unaudited   Unaudited       Audited 
                                            Note    EUR '000    EUR '000      EUR '000 
  ASSETS 
  NON-CURRENT ASSETS 
  Intangible assets                                    7,354       6,975         7,251 
  Property, plant and equipment                          251         449           355 
                                                       7,605       7,424         7,606 
                                                  ----------  ----------  ------------ 
  CURRENT ASSETS 
  Trade and other receivables                          4,313       2,686         2,909 
  Cash and cash equivalents                            8,764       1,056         1,891 
                                                      13,077       3,742         4,800 
                                                              ----------  ------------ 
  TOTAL ASSETS                                        20,682      11,166        12,406 
-----------------------------------------  -----  ----------  ----------  ------------ 
 
  EQUITY AND LIABILITIES 
  EQUITY 
  Called up share capital presented 
   as equity                                 8            36           1             1 
  Share premium                                       10,629       1,000         1,000 
  Reorganisation reserve                                 656         656           656 
  Foreign exchange reserve                             (103)       (170)         (170) 
  Share option reserve                                    91          62            91 
  Retained earnings                                  (1,930)     (1,885)       (1,481) 
  TOTAL EQUITY                                         9,379       (336)            97 
-----------------------------------------  -----  ----------  ----------  ------------ 
 
  CURRENT LIABILITIES 
  Trade and other payables                             5,497       7,263         7,726 
 
  NON-CURRENT LIABILITIES 
  Long term liabilities                                5,806       4,239         4,583 
  TOTAL LIABILITIES                                   11,303      11,502        12,309 
-----------------------------------------  -----  ----------  ----------  ------------ 
  TOTAL LIABILITIES AND EQUITY                        20,682      11,166        12,406 
-----------------------------------------  -----  ----------  ----------  ------------ 
 
 
 CONSOLIDATED STATEMENT OF 
 CHANGES IN EQUITY 
                         Called      Share   Reorganisation                  Foreign      Share    Retained      Total 
                       up share    Premium          Reserve                 exchange     Option    earnings 
                        capital    account                                  reserves    reserve 
                      presented                                              arising 
                      as equity                                       on translation 
 
              Note     EUR '000   EUR '000         EUR '000                 EUR '000   EUR '000    EUR '000   EUR '000 
 
 At 1 January 2020            1      1,000              656                    (165)                (1,169)        323 
------------------  -----------  ---------  ---------------  -----------------------  ---------  ----------  --------- 
 Share options 
  granted 6                                                                                  62                     62 
 Total 
  comprehensive 
  loss for the 
  period                                                                         (5)                  (716)      (721) 
 At 30 June 2020              1      1,000              656                    (170)         62     (1,885)      (336) 
------------------  -----------  ---------  ---------------  -----------------------  ---------  ----------  --------- 
 
 
 At 1 July 2020               1      1,000              656                    (170)         62     (1,885)      (336) 
------------------  -----------  ---------  ---------------  -----------------------  ---------  ----------  --------- 
 Share options 
  granted 6                                                                                  29                     29 
 Total 
  comprehensive 
  loss for the 
  period                                                                           -                    404        404 
 At 31 December 
  2020                        1      1,000              656                    (170)         91     (1,481)         97 
------------------  -----------  ---------  ---------------  -----------------------  ---------  ----------  --------- 
 
 
 At 1 January 2021            1      1,000              656                    (170)         91     (1,481)         97 
------------------  -----------  ---------  ---------------  -----------------------  ---------  ----------  --------- 
 Share options 
  granted                                                                                                            0 
 Reorganisation 
  for AIM Listing 
  8                          25    (1,000)                                                            1,000         25 
 Issue of shares             10     10,629                                                                      10,639 
 Total 
  comprehensive 
  loss for the 
  period                                                                          67                (1,449)    (1,382) 
 At 30 June 2021             36     10,629              656                    (102)         91     (1,930)      9,380 
------------------  -----------  ---------  ---------------  -----------------------  ---------  ----------  --------- 
 
 
 CONSOLIDATED STATEMENT OF CASHFLOWS 
                                                      Six months           Six months          Year ended 
                                                           to 30                to 30         31 December 
                                                            June                 June 
                                                            2021                 2020                2020 
                                                       Unaudited            Unaudited             Audited 
                                                        EUR '000             EUR '000            EUR '000 
  Cash flows from operating activities 
  Group loss after tax                                   (1,449)                (716)               (311) 
 
  Adjusted for: 
  Interest payable                                           345                  359                 674 
  R&D tax credit income                                        -                    -                (82) 
  Income tax expense                                         (7)                   47                 111 
  Depreciation                                               100                   85                 237 
  Amortisation                                               318                  213                 482 
  Movement in trade and other receivables                  (870)                (678)                 471 
  Movement in trade and other payables                     1,545                1,643                 310 
  Loss on disposal of tangible assets                          -                    -                   1 
  Net tax received                                             -                    -                  60 
  R&D refund received                                          -                    -                  26 
  Share-based payment expense                                  -                   62                  91 
  Effects of movement in exchange 
   rates                                                      67                    1                 (6) 
  Net cash flows generated from / 
   (used in) operating activities                             49                1,015               2,064 
--------------------------------------------  ------------------  -------------------  ------------------ 
 
  Cash flows from investing activities 
  Purchase of property, plant and 
   equipment                                                (65)                (308)                (70) 
  Payment for acquisition of subsidiaries, 
   net of cash acquired                                        -              (1,907)             (1,907) 
  Payment of deferred consideration                      (1,185)                 (49)               (249) 
  Payment for software development 
   asset                                                   (422)                (167)               (732) 
  Net cash (used in) investing activities                (1,672)              (2,432)             (2,959) 
--------------------------------------------  ------------------  -------------------  ------------------ 
 
  Cash flow from financing activities 
  Loans received                                              60                    -                 628 
  Interest payable                                         (345)                (359)               (674) 
  IPO - Exceptional Costs                                (1,883)                    -                   - 
  Equity (Proceeds from issue of                          11,601                    -                   - 
   shares) 
  Equity (IPO costs against Share                          (937)                    -                   - 
   premium) 
  Net cash generated / (used in) 
   from financing activities                               8,496                (359)                (45) 
--------------------------------------------  ------------------  -------------------  ------------------ 
  Net increase/(decrease) in cash 
   and cash equivalents                                    6,873              (1,775)               (941) 
  Cash and cash equivalents at the 
   beginning of the period                                 1,891                2,831               2,831 
  Cash and cash equivalents at the 
   end of the period                                       8,764                1,056               1,891 
--------------------------------------------  ------------------  -------------------  ------------------ 
 

Notes to the unaudited interim statements

   1.     General Information 

Glantus Holdings Plc ("the Company") is a public limited company incorporated in the Republic of Ireland. The registered office is Estuary House, Block P7, Eastpoint Business Park, Dublin 3. The company was admitted to AIM on 11th May 2021.

The principal activity of the Group is the specialist provision of next generation and world class software platforms focused on manufacturing, distribution and related industries.

   2.     Accounting policies 

Basis of preparation

These interim financial statements are non-statutory general-purpose financial statements for the six-month period ended 30 June 2021. These financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting, as adopted by the European Union, and the Companies Act 2014. They do not include all of the information required in annual financial statements in accordance with IFRS as adopted by the European Union. 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 annual consolidated financial information for the year ended 31 December 2020 included in the Admission Document.

The interim financial statements for the six-month period ended 30 June 2021 should be read in conjunction with the consolidated results for the year ended 31 December 2020 included in the Admission Document, and any public announcements made by the company during the interim reporting period.

The interim financial statements have been prepared on the historical cost basis. The interim financial statements of the Group are presented in Euro ("EUR") which is also the functional currency of the Company.

The Group's accounting policies are set out in the Company's Admission Document.

The preparation of the interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may subsequently differ from those estimates. In preparing the interim financial statements, the significant judgements made by management in applying the Group's accounting policies and key sources of estimation uncertainty were the same, in all material respects, as those applied to the consolidated results for the year ended 31 December 2020 included in the Admission Document.

Going concern

At the time of approving these interim accounts, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis of accounting in preparing the interim financial statements.

The interim financial statements are unaudited and were approved by the Board of Directors on 21/09/21.

   3.     Segmental Reporting 

Segmental information is presented in respect of the group's geographical regions and operating segments in accordance with IFRS 8 'Operating Segments'. The Board considers that there is one identifiable business segment being the provision of enterprise software solutions.

Recurring revenue is the revenue that annually repeats either under contractual subscription or predicable transactional billing.

 
                                      Six months          Six months     Year ended 
                                           to 30               to 30    31 December 
                                            June                June 
                                            2021                2020           2020 
                                             EUR                 EUR            EUR 
 Amount of revenue by class of 
  activity: 
 Recurring annual subscriptions            1,402               1,149          2,149 
 Recurring recovery services               2,374               2,519          5,383 
 Professional services & licences            486                 385            639 
 
 Reported revenue                          4,262               4,053          8,171 
-----------------------------------  -----------  ------------------  ------------- 
 

The group operates in three principal geographical regions being Republic of Ireland, the United Kingdom and the United States of America. The group also has customers in other countries such as Singapore, Australia, Spain, Switzerland, Canada, Mexico and the Netherlands, which are not material for separate identification.

 
                                  Six months   Six months     Year ended 
                                       to 30        to 30    31 December 
                                        June         June 
                                        2021         2020           2020 
                                    EUR '000     EUR '000       EUR '000 
 Amount of revenue by region: 
 Republic of Ireland                   1,510        1,105          2,047 
 United Kingdom                        1,630        1,357          2,611 
 United States of America              1,122        1,591          3,513 
 
 Reported Revenue                      4,262        4,053          8,171 
-------------------------------  -----------  -----------  ------------- 
 
   4.     Adjusted EBITDA 

Management has presented adjusted EBITDA as it monitors this performance measure at a consolidated level, and the Board considers that this metric provides the best measure of assessing underlying trading performance.

Adjusted EBITDA is calculated by adjusting profit or loss before taxation to exclude the impact of net finance costs, depreciation, amortisation, share based payment charges and exceptional items.

The exceptional items include acquisition costs, post-acquisition restructuring and AIM admission costs.

 
                                       Six months   Six months     Year ended 
                                            to 30        to 30    31 December 
                                             June         June 
                                             2021         2020           2020 
                                         EUR '000     EUR '000       EUR '000 
-------------------------   ---------------------  -----------  ------------- 
 Operating (Loss)/profit                  (1,111)        (310)            473 
 Amortisation                                 318          213            482 
 Depreciation                                 100           85            237 
 Exceptional Items                          1,883          570            794 
 Share Based payments                           -           62             91 
 Other Income                                   -          (7)          (282) 
 
 Adjusted EBITDA                            1,190          613          1,795 
--------------------------  ---------------------  -----------  ------------- 
 
 
   5.     Exceptional Items 

The exceptional items include IPO costs, acquisition costs and costs incurred in post-acquisition restructuring.

 
                                            Six months         Six months         Year ended 
                                                 to 30              to 30        31 December 
                                                  June               June 
                                                  2021               2020               2020 
                                              EUR '000           EUR '000           EUR '000 
----------------------------------   -----------------  -----------------  ----------------- 
 
 Acquisition costs                                   -                546                546 
 Restructuring costs                                 -                  -                745 
 AIM Admission costs                               902                  -                  - 
 Sale Fee to Beachpoint Capital                  1,000                  -                  - 
  on IPO admission 
 Other exceptional (income)/costs                 (19)                 24              (496) 
 
 Total exceptional items                         1,883                570                794 
-----------------------------------  -----------------  -----------------  ----------------- 
 

Total costs for AIM admission totalled EUR1.8m - EUR0.9m at P&L exceptional cost and EUR0.9m adjusted to Share premium in line with IFRS.

   6.     Share based payments 

The share based payment charge has been calculated using the Black-Scholes model.

   7.     Earnings per share 

Basic earnings per share is calculated by dividing the net loss for the period attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.

The weighted average number of ordinary shares has been adjusted to reflect bonus share issue in H1-21.

The basic earnings per share calculation is the same as for the fully diluted earnings per share position.

 
                                               Six months   Six months     Year ended 
                                                    to 30        to 30    31 December 
                                                     June         June 
                                                     2021         2020           2020 
 Earnings                                        EUR '000     EUR '000       EUR '000 
-------------------------------------   -----------------  -----------  ------------- 
 (Loss) for the period                            (1,449)        (716)          (312) 
 Taxation                                             (7)           47            111 
 Amortisation                                         318          213            482 
 Depreciation                                         100           85            237 
 Exceptional Items                                  1,883          570            794 
 Share Based payments                                   -           62             91 
 Other Income                                           -          (7)          (282) 
 Finance costs                                        345          359            674 
 
 Adjusted Earnings                                  1,190          612          1,795 
--------------------------------------  -----------------  -----------  ------------- 
 
 
                                                   Number       Number         Number 
 Weighted average number of ordinary                 '000         '000           '000 
  shares 
-------------------------------------   -----------------  -----------  ------------- 
 Total shares in issue (weighted)                  29,038       26,275         26,275 
 
 
 EPS                                                 Cent         Cent           Cent 
-------------------------------------   -----------------  -----------  ------------- 
 Basic and diluted EPS                             (0.05)       (0.03)         (0.01) 
 Adjusted basic and diluted EPS                      0.04         0.02           0.07 
 

Adjusted EPS is not a defined performance measure in IFRS. The Group's definition of adjusted EPS may not be comparable with similarly titled performance measures disclosures by other entities.

   8.     Share Capital 
 
                                      Ordinary      Share       Share 
                                        Shares      Capital     Premium 
                                    ------------  ---------  ----------- 
                                       Number        EUR         EUR 
                                      @ EUR0.001 
                                         each 
---------------------------------   ------------  ---------  ----------- 
 At 1 January 2020, 30 June 2020 
  and 31 December 2020                 1,275,444      1,275      999,791 
 Bonus share issue pre admission 
  reorganisation                      25,000,000     25,000     (25,000) 
 Reduction in Share Premium                                    (974,791) 
 Share Options exercised 11 May 
  2021                                   196,078        196        7,574 
 Shares issued on Admission 11 
  May 2021                             9,803,909      9,804   10,621,915 
----------------------------------  ------------  ---------  ----------- 
 At 30 June 2021                      36,275,431     36,275   10,629,489 
----------------------------------  ------------  ---------  ----------- 
 

In connection with the admission, the Company undertook a number of steps to reorganise its share capital as follows:

1. On 9 April 2021, the Company had share premium of EUR999,791. EUR25,000 of the share premium was capitalised and applied in paying up in full unissued shares allotted as fully paid bonus shares to the holders of the Ordinary Shares

   2.     On 9 April 2021, share premium account was reduced by EUR974,791 to nil 

3. On 13 April 2021, 300,000 Preference Shares of EUR1 each held by Enterprise Ireland were paid up and cancelled.

On Admission:

1. On 11 May 2021, 196,078 ordinary shares were issued on the exercising of share options by Paula Nolan.

   2.     On 11 May 2021, 9,803,909 Ordinary shares were issued as part of admission. 

3. Following admission the total ordinary share capital of the Company was 36,275,431 shares of EUR0.001 each.

   9.     Events after the reporting period 

The Company acquired the total share capital of Technology Insight Corporation and the assets of Technology

Insight Europe on 15 July 2021 for a combined consideration of $9.3m.   Payment terms as follows 

On Completion : $6.9m cash

$1.0m ordinary shares

          Dec 2021            :  $0.4m cash 
          Jul   2022            :  $1.0m cash 

The acquisition was funded by way of EUR5m debt funding from Beachpoint Capital and balance from cash reserves.

   [1]   Source: www.researchandmarkets.com   Global Accounts Payable Automation Market report 2021 

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September 29, 2021 01:59 ET (05:59 GMT)

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