TIDMINX
RNS Number : 5361A
i-nexus Global PLC
30 May 2019
30 May 2019
i-nexus Global plc
("i-nexus", the "Company" or the "Group")
Half Yearly Report
i-nexus Global plc (AIM: INX), a leading provider of cloud-based
Strategy Execution software solutions designed for the Global 5000,
is pleased to provide its unaudited results for the six months
ended 31 March 2019.
Financial Highlights
-- Group Revenue GBP2.31m (H1 18 GBP2.24m)
-- Loss before tax GBP1.91m (H1 18 GBP0.38m) reflecting continued investment and expansion plans
-- Cash & cash equivalents as at 31 March 2019 of GBP4.76m
(31 March 2018: GBP0.22m) taking into account IPO net proceeds and
subsequent expenditure
-- Continued high levels of recurring revenue, representing 82%
of total revenue (H1 2018: 89%), with stronger than expected
service revenues
-- Gross Margin increased to 75% (H1 2018: 68%)
Operational Highlights
-- Successful deployment of IPO proceeds has seen transformation
of all areas of the business, including senior hires in key
management roles
o Total headcount increased by 50% since the IPO
-- Growth of the contracted customer base, including the
addition of a robotics company, a UK Public sector Trust, two tier
1 automotive suppliers and a Private Equity company, who has
licenced the Company's technology for use across all its investee
businesses
-- Customer Success teams are starting to drive increased
service demand ahead of subsequent license upsells, demonstrating
more applicability internally
-- Steady increase in monthly recurring revenues ("MRR") in Q2
and start of the second half of the year
Outlook
-- Enlarged sales force and strategic selling initiatives have
resulted in a current sales pipeline three times larger than a year
ago
-- Early signs that the contract conversion cycle can accelerate
as mature customers recognise the benefits of our core products
-- Board optimistic on full year outlook in line with market
expectations and that the level of sales to both new and existing
customers will continue to grow through the second half of the
year
Simon Crowther, Chief Executive, of i-nexus Global plc,
commented: "Over the last nine months we have transformed the
operational structure of i-nexus, bringing in senior executives to
all key business areas. This has provided the impetus for a
refocusing of our go-to-market, Customer Success and product
strategies, to more effectively capture our significant market
opportunity. We are starting to see the results of these efforts in
increases in existing customer service and upsell revenue and new
customer conversions leading to increases in monthly recurring
revenue through Q219 into Q319. This, coupled with our increased
sales pipeline and our continued focus on financial control, means
the Board expects to secure a positive outcome for the current
financial year and beyond."
For further information please contact:
i-nexus Global plc Via: Alma PR
Simon Crowther, CEO
Alyson Levett, CFO
N+1 Singer (Nominated Adviser and Broker) Tel: +44 (0)207 496 3000
Shaun Dobson / Lauren Kettle (Corporate
Finance)
Tom Salvesen (Corporate Broking)
Alma PR Tel: +44 (0)203 405 0212
Caroline Forde / Josh Royston / Jessica
Joynson
About i-nexus Group plc
i-nexus supports some of the largest global companies in
running, improving and changing their businesses through the
provision of a scalable, enterprise-grade, cloud-based Continuous
Improvement ("CI") and Strategy Execution ("SE") software platform.
The platform is in use at global blue-chip businesses,
predominantly based across the US and Europe, helping customers
execute key strategic goals throughout all levels and divisions of
their organisations.
The Group's software supports Hoshin Kanri, a strategy
development methodology first introduced in the 1960s in Japan and
born out of lean, six sigma and operational improvement theory.
Hoshin Kanri (directly translated as "direction execution") is a
systematic planning, implementation and review methodology which,
when implemented, aims to ensure that the strategic goals of a
company are properly communicated to all employees and that they
drive progress and action at every level of the business.
i-nexus is headquartered in Coventry, UK with a sales office in
New York, and employs over 90 staff.
BUSINESS REVIEW
Following a phase of significant investment into the business
after the IPO in June 2018, the structure, reach and capability of
the Group has been transformed. Staff numbers have increased to
over 90 people (a 50% uplift), including key strategic and
management hires across all operational teams. We are now better
positioned to sell our market leading products and have the
resources and expertise to support a significant scaling of our
customer base, including a growing aftersales service capability.
This influx of experience has had a particularly positive impact on
our go-to-market and product development strategies. We have
refined and realigned our strategy in these two areas, which puts
us in a stronger position to capture our significant market
opportunity and capitalise on our first mover competitive advantage
within the enterprise market for Hoshin Kanri based strategy
execution software. Pleasingly, we are starting to see evidence of
positive pipeline progression and broader applicability to support
this core strategy.
Investments in our customers, both through review and refinement
of our sales process and our expanded customer success team, have
delivered larger than expected increases in our services revenue,
which evidence shows is a pre-cursor to upsells of recurring
revenue. This has proven to be the case with a number of our
customers in the first half, with more in the forward pipe which we
are looking to close in H2. The resulting shift in revenue mix seen
in the first half is expected to rebalance as the rate of new
customer wins accelerate in the second half and beyond.
Recognised revenues for the period increased 3% to GBP2.31m (H1
2018: GBP2.24m), with the majority of revenue associated with
recent new customer wins in the half to be recognised in future
periods. Loss before tax increased to GBP1.91m (H1 2018: GBP0.38m),
in line with management expectations, as we continue to invest
proceeds from the IPO to grow the business. Period end net cash
increased to GBP4.76m (H1 2018: GBP0.22m).
As previously reported, target Monthly Recurring Revenue ("MRR")
returned to more normalised patterns of growth in the period. After
some known customer churn which took place early in the first half,
we saw improved levels of underlying growth and closed the period
at an MRR run rate of GBP335k (FY18: GBP335k), which has continued
to increase into Q319. While the reported customer churn at the
start of the period was frustrating, the investments we have made
into our account management teams following IPO means we now have
greater visibility and insight into customer accounts and closer,
more productive relationships as a result. This has proven to be a
valuable tool in supporting the growth in existing customer
revenues.
Market opportunity
We continue to believe the market opportunity for enterprise
level strategy execution software is significant, and for the
growing area of Hoshin Kanri based tools in particular. Two of the
leading industry research houses, Gartner and Forrester, have
indicated their intention to initiate coverage on the sector,
citing a growing interest from enterprises in strategy execution
software. Our own marketing initiatives bear this out and we are
seeing a growing number of RFPs for strategy execution software
from within a growing number of sub-sectors. We are confident the
breadth of our platform and its proven ability to run complex
strategy programmes at depth and scale, across thousands of
employees in multiple geographies, puts us in a strong position to
benefit from this evolving market.
The Group's target market is primarily the Global 5000 and, more
specifically, the 2,800 companies of this number that are based in
the USA and Europe. In October we established a small office space
in New York for our six new US hires covering Implementation,
Success, Support, Pre-sales consulting and Sales. This is a key
step for both scaling efficiently and embedding ourselves within
one of our largest market opportunities.
Go to market strategy
Direct sales
Following the significant increase in the size and experience
levels of our sales team, we initiated a review of our sales
processes and pipeline during the first half of the year. The first
stage of this process was a requalification of our sales pipeline,
removing prospects we now consider to be too immature in their
current deployments of strategy execution to be able to benefit
within the next 12 months from our software. These types of
opportunities are now being passed on to our consultancy channel
partners for further development, and we anticipate will return as
more qualified near-term prospects in 12-18 months. While this
resulted in an expected reduction in the scale of our pipeline and
new customer signings in the first half of the year were lower than
previously anticipated, the quality and deliverability of our
pipeline improved. The sharpened focus ensures we can target leads
more effectively, with new customer signings accelerating in the
second half. This increased focus combined with newly implemented,
innovative marketing initiatives has resulted in a significantly
larger pipeline of better qualified opportunities which should have
a greater likelihood of converting.
We have entered the second half of the year with a three-fold
increase in our number of near-term qualified leads, compared to H2
2018. A proof point of the success of the change of strategy has
been the shortening of our sales cycle for our two most recent
customer wins, from an average of seven months previously to less
than four months. In addition, we continue to grow our breadth and
depth of applicability to our existing customers as evidenced by a
growing uptake of incremental services, thereby underlining our
'land and expand' strategy.
We are also pleased to report a growing and broader sectorial
presence with new customers secured in the first half of the year,
including a robotics company, an additional UK Public sector Trust,
two tier 1 automotive suppliers and a Private Equity company, who
has licenced our technology for use across all its investee
businesses.
Channel partners
Following the refocusing of our direct sales activity, as
described above, we consider channel partners to play a key role in
our growth strategy in two ways:
-- successful nurturing of our longer-term sales leads and
-- the potential to significantly increase our customer base, at
a lower cost of sale through introducing us to their own customer
base.
We have identified five strong potential Hoshin mature
consulting partners who all have a pipeline of prospects we can
capitalise on and have started to assess potential collaboration
opportunities. Having restructured and refined our approach to
targeting new business, we are now better equipped to focus on
developing these channel partners and build scale in the second
half of the year and beyond.
Cross and upsell to existing customers
Many of our customers are relatively mature in their use of
Hoshin to support strategy execution but have thus far only
implemented our software at certain levels of the business, or only
in certain divisions or locations. Our significantly expanded
customer support team facilitates an increase in our levels of
licencing and service provision to our existing customers. This
will be achieved through targeted sales efforts and education
focused on the additional capabilities within our software
platform, which is expected to have a consequential impact on
revenues generated from these customers.
One of a number of successful examples of this investment has
been seen in the first half of the year at one of our accounts, who
through the support of our success and professional services team
have expanded the use of our software beyond that of the initial
deployment; extended across the whole organisation and into
additional use cases, thus increasing their monthly recurring
revenue by 50%. Additionally, one of our longest standing customers
is now in the early stages of major upsell through their new
holding company which should be delivered in the second half,
contributing to our full year expectations. Focussing on our
customers remains a key strategic initiative of the Group.
Product Innovation
We were delighted to welcome James Davies as EVP of Product in
January. Reflecting on the importance of getting the detail of our
product strategy right as soon as possible, we have filled this
role earlier than we had originally anticipated. It has been a
hugely positive decision, with James making a strong impact on this
critical part of the business.
The many years of investment into our software has created a
comprehensive, enterprise grade strategy execution platform, with
all the key elements necessary to support the world's largest
businesses such as security, configurability and integration. We
are now in a position to focus on the evolution of the platform's
usability to facilitate wider use across an organisation and ensure
all its capabilities are more easily available. The product
strategy, reflected in the revised product and technology roadmaps,
focuses initially on delivering a consumer-grade experience for
each type of user, making it easier to use at an entry level and
increasing the business analytics within it.
A simplified experience leads to stronger adoption and ensures
the data is available to unlock insight and demonstrate executive
value. To this end two new products are being developed to cater to
the different needs of executives, for whom gaining insight through
visualisation/analytics is a priority, and casual users who will
benefit from being able to make fast updates. Both experiences will
be made available to customers later in CY19.
Current Trading and Outlook
The first half of 2019 had a sales mix that evidenced both a
growing applicability to our existing customers and an increasing
momentum in new sales. We have had an encouraging start to the
second half of the year, and expect new deal cadence to continue to
improve. Our total pipeline order value is running ahead of the
prior year giving us optimism in our full year outlook, assuming
normal and timely conversion rates. Our direct sales pipeline
continues to grow and we are encouraged by the early indications
coming from our channel partners. Having now largely completed our
investment phase, our focus for the next half of the year is to
utilise the talent within the business, grow our customer
relationships, maintain product leadership and so capitalise on the
growing market appetite for differentiated strategy execution
software.
FINANCIAL REVIEW
Reported revenue
Revenue increased by 3% to GBP2.31m from GBP2.24m in the prior
comparative period. This low growth reflects some higher than
expected churn experienced in October which was in turn included in
our forecasts. The majority of revenue associated with contracts
secured in Q2 will be recognised in future periods. The Group
signed seven new customers (H1 2018: eight) all under recurring
contracts of at least one year in length, typically paid annually
in advance. Revenue from recurring contracted software
subscriptions was GBP1.89m (H1 2018: GBP1.98m) and from associated
professional services was GBP0.41m (H1 2018: GBP0.25m). The growth
in professional services is encouraging as this can lead to
increased MRR spend by customers in future periods and reflects the
closer relationships we now have with customers following our
investments into account management and 'Customer Success'.
Gross Margin
Gross margin in the year was 75% (H1 2018: 68%) after accounting
for commission payable to the Group's business partners. Gross
margin has improved, as expected, as the operational benefits of
the IPO investments have begun to feed through and pricing in
Professional Services in particular has strengthened. Reported
gross margin is the blended gross margin over both recurring
software subscriptions and professional services.
Overheads
Overhead (defined as the aggregate of staff costs, other
operating expenses but excluding those costs included in cost of
sale) increased in the period from GBP1.85m (at 31 March 2018) to
GBP3.60m. We have added GBP300k of monthly run rate cost to the
Group since IPO, as planned. We have adjusted our investment into
the business in line with our revenue growth in the first half of
the year and have held back some investment as we await an uptick
in our revenue line.
Capitalised development costs amounted to GBP55k in the period
(H1 2018 GBP0), reflecting the significant increase in our
development capacity and progress being made on enhancing the
product as planned.
The Group's loss before taxation was GBP1.91m (H1 2018:
GBP0.38m).
Cash flow
The Group is in a strong financial position, with cash balances
of GBP4.76m, at 31 March 2019 (30 September 2018: GBP6.94m). Gross
debt at 31 March 2019 was GBP0.52m (31 March 2018: GBP1.05m) of
which GBP0.19m was payable within one year. This substantial
reduction in debt is a result of both the repayment and conversion
to equity of shareholder debt at IPO.
The Group experienced a net outflow of funds from operating
activities of GBP1.73m (H1 2018 GBP0.12m).
The Group will continue to apply treasury and foreign currency
exposure management policies to minimise both the cost of finance
and our exposure to foreign currency exchange rate
fluctuations.
Capital expenditure
The Group operates an asset light strategy and has low capital
requirements, therefore expenditure on fixed assets is low at 6% of
revenue (H1 2018: 2%). This increase is a result of some
much-needed investment in our internal infrastructure and equipment
for the additional team members hired.
i-nexus Global plc
Consolidated Statement of Comprehensive Income
As restated As restated
Unaudited Six Unaudited Audited Year
months ended Six months ended 30 September
31 March 2019 ended 31 March 2018
2018
GBP GBP GBP
Revenue 2,307,343 2,244,361 4,741,915
Cost of Sales (585,085) (727,442) (1,488,028)
Gross Profit 1,722,259 1,516,919 3,253,887
Administrative Expenses (3,598,966) (1,854,708) (4,139,628)
Operating Loss (1,876,707) (337,789) (885,741)
Finance Income 3,360 (0) 1,847
Financing Costs (38,980) (43,660) (124,384)
Loss before tax (1,912,326) (381,450) (1,008,278)
Tax 46,134 91,662 186,957
Loss for the period/year (1,866,192) (289,787) (821,321)
Other comprehensive income
Exchange differences arising
on translation of foreign
operations 12,609 (4,223) (54)
Loss on net investment hedge (38,281) 0 (28,529)
Total comprehensive loss
for the period/year (1,891,865) (294,011) (849,904)
GBP GBP GBP
Basic and diluted loss per
share (0.06) (0.21) (0.05)
Consolidated Statement of Financial Position
As restated As restated
Unaudited Unaudited Audited
As at 31 As at 31 As at 30 September
March March
2019 2018 2018
GBP GBP GBP
Assets
Non-current assets
Intangible assets 110,011 - 55,011
Property plant and equipment 303,002 111,462 199,222
Total non-current assets 413,013 111,462 254,233
Current assets
Trade and other receivables 2,436,367 1,662,644 1,751,956
Current tax receivable 183,162 73,702 183,162
Cash and cash equivalents 4,761,743 222,687 6,940,573
Total current assets 7,381,272 1,959,033 8,875,691
Total assets 7,794,285 2,070,495 9,129,924
Current liabilities
Borrowings. 190,937 967,505 298,998
Trade and other payables 1,105,393 914,756 904,668
Deferred income 2,397,994 2,786,068 1,856,852
Total current liabilities 3,694,324 4,668,329 3,060,518
Non-current liabilities
Borrowings 325,650 77,649 403,230
Provisions 80,702 40,702 80,702
Total non-current liabilities 406,352 118,351 483,932
Total liabilities 4,100,676 4,786,680 3,544,450
Net assets 3,693,609 (2,716,185) 5,585,474
Equity
Share capital 2,957,161 1,417,216 2,957,161
Share premium 7,256,188 4,086,013 7,256,188
Capital redemption reserve - 6,468,287 -
Share based payment reserve - 63,254 -
Foreign exchange reserve (35,181) (13,677) (9,508)
Merger reserve 10,653,881 - 10,653,881
Accumulated losses (15,272,248) (14,447,491) (15,272,248)
Accumulated losses in period/year (1,866,192) (289,787) -
Total Equity 3,693,609 (2,716,185) 5,585,474
Consolidated Statement of Cash Flow
Unaudited Unaudited Audited
As at 31 As at 31 As at 30
March March September
2019 2018 2018
Note GBP GBP GBP
Cash flows from operating
activities
Loss before taxation (1,912,326) (381,450) (1,008,278)
Adjustments for non-cash/non-operating
items
Depreciation and profit on
disposal 43,788 22,156 53,737
IPO Costs - - 175,088
Share based payment - 39,676 30,000
Finance income (3,360) - (1,847)
Finance charges 38,980 43,660 124,384
(1,832,918) (275,958) (626,916)
Changes in working capital:
(Increase/Decrease) in trade
and other receivables (684,411) (143,936) (250,945)
(Increase/Decrease) in trade
and other payables 741,867 17,920 (976,963)
Taxation 46,134 279,140 282,671
Net cash from operating activities (1,729,328) (122,834) (1,572,153)
Cash flows from investing
activities
Purchase of property, plant
and equipment (147,568) (37,366) (118,141)
Purchase of development costs (55,000) - (55,011)
Interest received 3,360 - 1,847
Net cashflow from investing
activities (199,208) (37,366) (171,305)
Cash flows from financing
activities
Proceeds from shares - - 9,982,508
Less issue cost - - (1,381,090)
Proceeds from borrowings - 500,000 1,299,863
Repayment of borrowings (185,641) (314,904) (1,338,486)
Interest paid (38,980) (43,660) (124,384)
Net cash flow from financing
activities (224,621) 141,436 8,438,411
Net decrease in cash and cash
equivalents (2,153,157) (18,764) 6,694,953
Cash and cash equivalents
beginning of the period 6,940,573 245,674 245,674
Effect of foreign exchange
rate changes (25,673) (4,223) (54)
Cash and cash equivalents
at the end of the period 4,761,743 222,687 6,940,573
Consolidated Statement of Changes in Equity
Share
Capital Based Foreign As restated
Issued Share Redemption Payment exchange Merger Accumulated Total
Capital Premium Reserve Reserve reserve reserve losses Equity
GBP GBP GBP GBP GBP GBP GBP GBP
Unaudited
As at 1
October 2017 1,417,216 4,086,013 6,468,287 23,578 (9,454) - (14,307,385) (2,321,745)
IFRS15 Impact
on
Accumulated
losses - - - - - - (140,106) (140,106)
As at 1
October 2017
(As Restated) 1,417,216 4,086,013 6,468,287 23,578 (9,454) - (14,447,491) (2,461,851)
Loss for
period - - - - - - (289,787) (289,787)
Other
comprehensive
income
for the
period - - - - (4,223) - - (4,223)
Share based
payment - - - 39,676 - - - 39,676
As at 31 March
2018 1,417,216 4,086,013 6,468,287 63,254 (13,677) - (14,737,278) (2,716,185)
As at 30
September
2018 2,957,161 7,256,188 - - (9,508) 10,653,881 (15,272,248) 5,585,474
As at 1
October 2018 2,957,161 7,256,188 - - (9,508) 10,653,881 (15,272,248) 5,585,474
Loss for
period - - - - - - (1,866,192) (1,866,192)
Other
comprehensive
income
for the
period - - - - (25,673) - (25,673)
Share based - - - - - - - -
payment
As at 31 March
2019 2,957,161 7,256,188 - - (35,181) 10,653,881 (17,138,440) 3,693,609
Notes to the consolidated interim report
For the six months ended 31 March 2019
1. General information
i-nexus Global plc (the "Company") is a public limited company
domiciled in the UK and incorporated in England and Wales
(registered number 11321642) and its registered office is George
House, Herald Avenue, Coventry Business Park, Coventry CV5 6UB
The principal activity of i-nexus Global plc ("the Company") and
its subsidiary company i-solutions Global Limited (together
"i-nexus Global" or "the Group") is the development and sale of
Enterprise Cloud based software and associated professional
Consultancy services.
The interim condensed consolidated financial statements were
approved for issue on 29 May 2019.
2. Basis of preparation
This unaudited interim condensed consolidated financial
information has been prepared under the historical cost convention
and in accordance with AIM Rules for Companies. The interim
condensed consolidated financial information has been prepared on a
going concern basis and is presented in Sterling to the nearest
GBP1.
The accounting policies used in the preparation of the interim
condensed consolidated financial information are consistent with
those set out in the 2018 Annual Report and Accounts except in the
case of IFRS 15. IFRS 15 has been adopted for the first time. Our
previously reported Interim results for 31(st) March 2018 have
therefore been restated to reflect the adoption of this Standard.
The impact of IFRS15 has adjusted our brought forward accumulated
losses for year ended 2017 from GBP14,307,385 to GBP14,447,491 (As
shown on the Statement of Changes in Equity). The deferred revenue
brought forward figure for 2018 has been amended from GBP2,554,995
to GBP2,695,101. The impact on the full year accounts for 2018
meant a net increase to revenue of GBP28,245 and for the half year
for 2018 a net decrease of GBP20,578. Further IFRS standards or
interpretations may be issued that could apply to the Group's
financial statements for the year ending 30 September 2019. If any
such, new standards or interpretations are issued, these may
require the financial information provided in this report to be
changed. The Group will continue to review its accounting policies
in the light of emerging industry consensus on the practical
application of IFRS.
The preparation of financial information in conformity with IFRS
requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities at the date of the
financial information and the reported amounts of revenues and
expenses during the reporting period. Although these estimates are
based on management's best knowledge of the events or actions
involved, actual outturns ultimately may differ from those
estimates. The interim information does not include all financial
risk management information and disclosures required in annual
financial statements; the information should be read in conjunction
with the financial information, as at 30 September 2018, summarised
in the 2018 Annual Report and Accounts. There have been no
significant changes in any risk management policies since 30
September 2018.
The interim condensed consolidated financial information for the
six months ended 31 March 2019 and for the six months ended 31
March 2018 do not constitute statutory accounts as defined in
Section 434 of the Companies Act 2006 and are unaudited. The
financial information for the six months ended 31 March 2019
presents financial information for the consolidated group,
including the financial results of the Company's wholly owned
subsidiary, i-solutions Global Limited. Comparative figures in the
Interim Report for the year ending 30 September 2018 have been
taken from the Group's audited financial statements on which the
Group's auditors, Saffery Champness LLP, expressed an unqualified
opinion.
3. Segmental reporting
The Directors consider that there is one identifiable business
segment that is engaged in providing individual products or
services or a group of related products and services that comprise
the core business.
All of the Group's assets and operations are located in the UK
and the USA.
4. Loss per share
The calculation of basic and diluted loss per share for the six
months to 31 March 2019 was based upon the loss attributable to
ordinary shareholders of GBP1,891,865 (six months to 31 March 2018:
GBP294,011, year ended 30 September 2018: GBP849,904) and a
weighted average number of ordinary shares in issue of 29,571,610
(six months to 31 March 2018: 1,417,216, year ended 30 September
2018: 18,495,089), calculated as follows:
Weighted average number of ordinary shares
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2019 2018 2018
Issued ordinary shares at
start of period/year 29,571,610 1,417,216 1,417,216
Effect of shares issued - 27,337 28,154,394
Weighted average number of
shares at end of period/year 29,571,610 1,432,386 18,495,089
------------------------------- ----------- ----------- -------------
Due to the losses incurred there is no dilutive effect from the
issue of share options. At 31 March 2018, there were 2,410,425
share options granted but not yet exercised (31 March 2017:
2,453,425; 30 September 2017: 2,375,925).
5. Related party transactions
Transactions entered into with related parties are as
follows:
Amount Amount Amount Amount Amount Amount
invoiced invoiced invoiced invoiced invoiced invoiced
to by to by to by
related related related related related related
party party party party party party
H1 2019 H1 2019 H1 2018 H1 2018 FY 2018 FY 2018
GBP GBP GBP GBP GBP GBP
--------------- ---------- --------- --------- --------- --------- ---------
Napkin Jack - 46,275 - - - 10,270
Note 1: Napkin Jack is owned by a James Davies, formerly an NED
for the Group now employed as the EVP Product.
No amounts were outstanding to or from the related parties at 31
March 2019
During each financial period, the Company entered into numerous
transactions with its subsidiary company, which net off on
consolidation; these have not been shown above.
6. Availability of Interim Report
Electronic copies of this Interim Report will be available on
the Company's website at www.i-nexus.com.
7. Principle risks and uncertainties
Although the directors seek to minimise the impact of risk
factors, the Group is subject to a number of those most relevant to
our H2 are as follows:
Customer churn
The Group has experienced falling revenues in relation to
certain customers in the past and in H1. The reasons for this are
varied and our historical ability to invest in our customers was
limited. So whilst the ramp up in investments is seeing benefits
Customer churn is still a risk for the Group and could affect the
Group's trading and financial position and prospects.
Failure of strategy execution market to grow at the rate
expected
The Directors believe that there is strong evidence supporting
the growth in the adoption of Strategy Execution software. However,
there can be no assurance that this growth will happen at the rate
envisaged by the Directors. If the market fails to adopt Strategy
Execution software at the rate envisaged then this will affect the
Group's future success and adversely affect its business, prospects
and results of operations and financial position.
The Group may face competition in a rapidly evolving market
The Group may face an increasing amount of competition in the
future as the market expands, making entry to it more attractive.
The entry into the market of strong, well-funded competitors,
including, but not limited to, in-house systems developed by either
internal IT departments or third-party consulting firms/system
integrators could have a negative impact on sales volumes or profit
margins achieved by the Company in the future.
Risks relating to growth plans
The Company's strategy depends upon market acceptance of its
solution to support its growth plans. There is a risk that if the
i-nexus solution is not accepted by the market as effectively as
the Board anticipate, the Company's investment in sales, marketing
and development of the i-nexus solution may exceed revenue growth,
which could likewise impact upon the Group's financial position and
prospects.
8. Forward-looking statements
This announcement may include certain forward-looking
statements, beliefs or opinions, including statements with respect
to the Group's business, financial condition and results of
operations. These forward-looking statements can be identified by
the use of forward-looking terminology, including the terms
"believes", "estimates", "plans", "anticipates", "targets", "aims",
"continues", "expects", "intends", "hopes", "may", "will", "would",
"could" or "should" or, in each case, their negative or other
various or comparable terminology. These statements are made by the
Directors in good faith based on the information available to them
at the date of this announcement and reflect the Directors' beliefs
and expectations. By their nature these statements involve risk and
uncertainty because they relate to events and depend on
circumstances that may or may not occur in the future. A number of
factors could cause actual results and developments to differ
materially from those expressed or implied by the forward-looking
statements, including, without limitation, developments in the
global economy, changes in government policies, spending and
procurement methodologies, and failure in health, safety or
environmental policies. No representation or warranty is made that
any of these statements or forecasts will come to pass or that any
forecast results will be achieved. Forward-looking statements speak
only as at the date of this announcement and the Company and its
advisers expressly disclaim any obligations or undertaking to
release any update of, or revisions to, any forward-looking
statements in this announcement. No statement in the announcement
is intended to be, or intended to be construed as, a profit
forecast or to be interpreted to mean that earnings per share for
the current or future financial years will necessarily match or
exceed the historical earnings. As a result, you are cautioned not
to place any undue reliance on such forward-looking statements.
9. Statement of Directors' Responsibilities
The Directors confirm to the best of their knowledge that:
i) The condensed interim financial information has been prepared
in accordance with IAS 34 as adopted by the European Union; and
ii) The interim management report includes a fair review of the
information required by the FCA's Disclosure and Transparency Rules
(4.2.7 R and 4.2.8 R).
Financial statements are published on the Company's website in
accordance with legislation in the United Kingdom governing the
preparation and dissemination of financial statements, which may
vary from legislation in other jurisdictions. The maintenance and
integrity of the Company's website is the responsibility of the
Directors. The Directors' responsibility also extends to the
ongoing integrity of the financial statements contained
therein.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR LLFLAEAIAFIA
(END) Dow Jones Newswires
May 30, 2019 02:00 ET (06:00 GMT)
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