TIDMPROX
RNS Number : 9669Q
Proxama PLC
18 September 2017
Proxama PLC
("Proxama", the "Company" or the "Group")
Half-Year Results and Trading Update
Proxama PLC, (AIM: PROX), the leading mobile location and data
intelligence expert, is pleased to announce its half year results
for the six months ended 30 June 2017 ("Half Year" or "H1 2017")
and a trading update.
Financial Highlights
-- A successful equity placing on the 25 July 2017 raising
GBP3.1m (before expenses), enabling the Group to become debt free
and provide working capital for the Location Sciences division.
-- As expected, revenues decreased to GBP1.0m (2016: GBP1.21m),
as the Company restructures its Digital Payment division and
transitions its focus to Mobile Location Data. Other operating
income, which includes grant income, was GBP0.20m (2016: GBP0.32m)
and therefore total income for the half year is GBP1.17m (2016:
GBP1.53m).
-- Adjusted EBITDA(1) losses before exceptional items reduced to GBP1.8m (2016: GBP2.10m).
-- Administrative expenses for the business were GBP3.39m of
which GBP0.36m were incurred to undertake the significant change
the business has undergone such as restructure and fundraising.
Therefore, the underlying administrative expenses were GBP3.0m
(2016: GBP4.1m), a reduction of 26%.
-- Underlying adjusted EBITDA(1) losses before exceptional items
is GBP1.53m (2016: GBP2.10m), a reduction of 27%.
-- As at September 2017 the annualised costbase of the business
is reduced down to approximately GBP4.2m (2016 full year: GBP7.4m)
which includes 33 full-time employees (reduced from 60 at the start
of the year). This significant reduction in the operational cost of
the business leaves the Company well positioned for the future.
-- Losses before tax for the half year decreased to GBP2.42m
(2016: GBP2.94m) an improvement of 18%.
-- Adjusted loss per share(2) for the half year of 0.22p (2016: 0.27p).
Operational Highlights
-- On-going contract to supply location data and services to a major UK city transport project.
-- Restructure of the Digital Payments division, resulting in a reduction to costs of GBP1.2m.
-- Delivery of Digital Payment division services to a major
client in South Africa, and retention of all existing clients.
Trading Update
-- The Group became fully debt free through a combination of
raising GBP3.1m in July 2017, redeeming fully the GBP2.5m loan with
Barclays, and conversion of the GBP0.4m White Angle Ltd loan.
-- Launch of Location Sciences, as announced on 11 September
2017, incorporating the previous Proximity Marketing business under
Managing Director Mark Slade, to provide businesses with
unprecedented access to precise location data and services.
Highlights include:
o An increase in audience to over 4 million consumers;
o The provision of precision location data to three new partners
on a recurring revenue basis;
o The supply of the first attribution services to a major mobile
media partner.
-- Significant growth in the key business KPIs set for Location
Sciences - our audience surpassed 4 million consumers, following
the signing of Rail Delivery Group's National Rail Enquiries app,
and our data points surpassed 2 billion.
-- Having exceeded the KPIs, the Board has reset targets to 5
million consumers and 5 billion data points by the end of 2017.
-- Mark Slade and Dan Francis appointed to the Board and leading
Proxama's focus on mobile location data.
-- Jo Rabin appointed as Chief Technology Officer and joins Proxama's Executive team.
Commenting on the results, John Kennedy, Chief Executive of
Proxama, said,
"In 2016 we the laid the important building blocks for the
Location Sciences business, securing audience through our app
partnerships and expanding our technology to include precise
geo-location data. In H1 2017 we've been getting the business 'fit
for growth' through the rebuilding of the Board and management
team, becoming completely debt free, significantly restructuring
the business whilst materially reducing costs and raising the
working capital to invest in Location Sciences. We are already
seeing the benefit of this investment through exponential growth of
our consumer audience and data scale. We continue to focus on
monetisation of this data as well as our transition to higher
margin products such as online to offline verification. If you
believe there is value in the collection, ownership and analysis of
billions of data points, along with the ability to analyse real
world moments of millions of consumers and apply this value into
advertisers and brands then there are exciting times ahead for
Location Sciences and Proxama."
Enquiries:
Proxama PLC Via Redleaf
John Kennedy, Chief Executive
--------------------------------- --------------
Peel Hunt LLP
(Nominated Adviser and Broker)
Edward Knight/Nick Prowting 020 7418 8900
--------------------------------- --------------
Redleaf Communications
Charlie Geller/Fiona Norman 020 7382 4747
--------------------------------- --------------
This announcement contains inside information for the purposes
of Article 7 of regulation 596/2014.
(1) Adjusted EBITDA means earnings before interest, tax,
depreciation, amortisation, impairment and exceptional items
(2) Adjusted loss per share is computed from statutory profits
after tax adjusted to exclude exceptional items
Forward looking statements
Certain statements contained within the announcement are forward
looking statements and are based on current expectations, estimates
and projections about the potential returns of Proxama PLC
("Proxama") and industry and markets in which Proxama operates, the
Directors' beliefs and assumptions made by the Directors. Words
such as "expects", "anticipates", "should", "intends", "plans",
"believes", "seeks", "estimates", "projects", "pipeline" and
variations of such words and similar expressions are intended to
identify such forward looking statements and expectations. These
statements are not guarantees of future performance or the ability
to identify and consummate investments and involve certain risks,
uncertainties, outcomes of negotiations and due diligence and
assumptions that are difficult to predict, qualify or quantify.
Therefore, actual outcomes and results may differ materially from
what is expressed in such forward looking statements or
expectations. Among the factors that could cause actual results to
differ materially are: the general economic climate, competition,
interest rate levels, loss of key personnel, the result of legal
and commercial due diligence, the availability of financing on
acceptable terms and changes in the legal or regulatory
environment. These forward-looking statements speak only as of the
date of this announcement. Proxama expressly disclaims any
obligation or undertaking to disseminate any updates or revisions
to any forward-looking statements contained herein to reflect any
change in Proxama's expectations with regard thereto, any new
information or any change in events, conditions or circumstances on
which any such statements are based, unless required to do so by
law or any appropriate regulatory authority."
About Proxama PLC
-- Proxama PLC is an international mobile commerce company
operating across two specialist areas - mobile location data and
intelligence, and payments solutions for card issuers and
processors.
Location Sciences
-- Location Sciences helps companies connect the online world
with the offline world using mobile location technology data. We
combine cutting-edge mobile location data collection with
proprietary machine learning analytics to create new value and
insights from location information.
-- We're media-agnostic and work with a variety of media,
advertising, technology partners - plus the world's biggest brands.
Our technology is well positioned to fulfil the need for greater
accuracy and accountability in a growing market that is
increasingly looking for superior data and verification.
Digital Payments
-- Our Digital Payments division provides end-to-end digital
solutions to banks and card issuers for EMV enablement, smart card
issuance and lifecycle management, PIN management and electronic
PIN delivery. Our suite of smart card solutions can uplift existing
card processing platforms to EMV and other smart card capability,
providing a low-risk, quick to market and cost-effective smart
migration path.
-- We work with financial and non-financial card issuers and
processors who use our solutions to manage hundreds of millions of
EMV and other smart card types, including transit and eID, around
the world.
Chairman's Statement
Introduction
The first half of 2017 has seen a period of great change for
Proxama, and I am pleased with the significant progress we have
made in this short time. We have a clear focus, a strengthened
balance sheet, and improved efficiencies. I look forward to
delivering increased value for our shareholders and customers
through the remainder of the year.
The Digital Payment division is now in a stable position
following the recent restructuring, resulting in a GBP1.2m
reduction in our cost base. We've completed our work on a
cornerstone contract with a major South African financial
institution, and providing excellent service to our existing
customers. I'd also like to thank our Digital Payments team for
their support as we went through the restructuring process.
The recent launch of our Mobile Location Data division, Location
Sciences, accelerates our growing position in this exciting sector.
In just a few short months we have developed a series of market
leading data products, and are already monetising this through our
partnerships with major industry players. What excites me most is
our ability to monetise the same data set many times over with
multiple customers in lots of different sectors, representing a
quantum change in our ability to scale the business. We have
already started to demonstrate this through the supply of precise
and verified journey data to a major UK city planning project, and
our participation in the Manchester CitySpire initiative, which
sees our unique location data used for transport aggregation
services.
Results
The trading performance of the business is in line with
management expectations. Total revenues (incl. grant and other
income) reduced to GBP1.17m (2016: GBP1.53m) as we transformed our
Digital Payments and Mobile Location Data divisions.
Total revenue, including grant and other income, for the Mobile
Location Data division, Location Sciences was GBP0.24m (2016:
GBP0.37m), of which grant income accounted for GBP0.19m (2016:
GBP0.29m).
Revenue for the Digital Payments division was GBP0.92m (2016:
GBP1.13m), a reduction of GBP0.2m.
Total Administrative Expenses for the Half Year were GBP3.39m
(2016: GBP4.1m), a reduction of 17%. Costs associated with the
restructuring and fundraising accounted for GBP0.4m of this.
Excluding these costs, underlying Administrative Expenses for the
Half Year were reduced by 26%.
As at September 2017, the annualised cost base of the business
is reduced down to approximately GBP4.2m (2016: GBP7.4m). A key
driver for this movement is the reduction in headcount to 33 from
60 at the start of the year.
As at 30 June 2017, the Company had a cash balance of GBP0.4m
and during July raised GBP3.1m (before expenses) from new and
existing investors. Subsequent to the fund raising the Company
redeemed its debt with both Barclays and White Angle and is now
completely debt free.
Operating Review
Location Sciences
Precise location data and services have never been so important
across multiple industry sectors.
In advertising, brands and their agencies are calling for far
greater accountability and transparency when investing in mobile
advertising campaigns. Location Sciences is able to tell these
companies whether their online spend is translating into increased
footfall, for example. We can then also give advice on how to
target their online audiences in order to get better results in the
future.
In transport, operators can see precisely where millions of
anonymous mobile users are moving throughout the day, and city
planners can see where people have been over many months and
predict where they will go in the future with the help of Location
Sciences. This means our customers can better plan transport links
or improve the layout of cities.
Market outlook
The wider mobile ecosystem is endorsing location intelligence
experts who can offer the right combination of quality, first
party-derived data and the products to access it at scale. Snap
Inc. for example has recently been acquiring several companies in
this sector, including Placed, a location intelligence company
similar in capabilities to Location Sciences.
Location Sciences welcomes the developments from Apple iOS 11
and Google Android O version that aim to give more visibility to
the consumer regarding how data is collected and for what purpose,
and is well positioned for 2018 and any changes that will be
required due to the proposed GDPR legislation. We feel this
proposed legislation will create opportunities for high quality
compliant data in the marketplace, and could see smaller and less
robust competitors at a fundamental disadvantage.
Location Sciences is now focused on monetising its products
during 2017 and plans further products and expansion for 2018.
The summary of our progress is as follows:
Existing products:
Location Data - we've secured several long term and monthly
recurring revenue deals to supply our precise location data to
industry partners. We expect to add more during the remainder of
2017. Location Sciences currently has a number of additional
partners in active commercial discussions, and expect to increase
these product revenues by the year end. Feedback from our partners
indicates that our data and services are of the very highest
quality.
Location Audiences - during H1 2017 we supplied location derived
audiences to an industry leading mobile media partner, and expect
to continue to do so via our revenue generating partnership
agreement, along with new opportunities in the pipeline.
New products:
OOH Media Attribution & Online To Offline Verification - we
continue to work with our existing and new leading Out Of Home
("OOH") partners and media agencies in order to launch these two
additional products to market during 2017.
Progress against KPIs:
The Board set three KPIs for Location Sciences to achieve at or
before the end of 2017:
-- Audience(1) - 4.0 million consumers
-- Data Points(2) - 2 billion data points
-- Revenue Generating Products - generate revenue from all four data products
Following the signing of our exclusive agreement with Rail
Delivery Group to incorporate Location Sciences technology into the
National Rail Enquiries app, we've seen our audience KPI increase
to over 4.0 million, and our data points KPI has surpassed our 2
billion target (figures as of end of August). We have now set new
targets of 5 million audience and 5 billion data points by the end
of 2017.
During H1 2017 our Location Data and Location Audience products
generated their first revenues, and we expect these to grow month
on month through H2 2017 as both our data volumes and number of
partners increase. We expect to monetise our new products in H2
2017.
Digital Payments division
We continue to focus on delivering excellent service for
existing customers, who continue to renew on an annual license
basis. We've delivered on major new project in South Africa, and we
continue to seek new business, and have an active pipeline. The
cost base has been restructured, and operates very efficiently.
People
Further to previous announcements, Mark Slade has joined as
Managing Director for the new Location Sciences division and joined
the Proxama Board. Dan Francis also joined the Board as Chief
Strategy Officer.
We are pleased to announce that Jo Rabin joins the Executive
team as Chief Technology Officer (CTO), to deliver the technical
scaling of the Location Sciences business. Jo brings with him a
wealth of technology and delivery experience from his time as CTO
in Residence at Wayra London, CTO Mobile at Thomson Reuters,
numerous advisory roles and start-up CTO roles at dotMobi, WiForia
and Flirtomatic.
During H1 2017, David Bailey stepped down as Deputy Chairman. I
would like to take this opportunity to thank David for his support
and contribution to Proxama over several years.
Outlook
The Board is now of the single view we have the right board and
executive team, the right cost structure for both divisions, and
the right products either in market or in development, to continue
to exceed on the 2017 KPIs. We believe that billions of precise
data points, combined with the ability to draw monetisable
insights, makes Proxama a valuable and strong business.
(1) "Audience" is defined as the total number of consumers who
have a mobile phone with iOS or Android apps embedded with the
Location Sciences technology.
(2) A "data point" is defined as any device event that Location
Sciences records and stores, such as a location event, device
status change or beacon interaction.
CONSOLIDATED INCOME STATEMENT
FOR THE PERIODED 30 JUNE 2017
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2017 2016 2016
Unaudited Unaudited Audited
GBP GBP GBP
Revenue 970,072 1,206,766 1,814,238
Cost of sales (81,463) (260,073) (658,508)
------------ ------------ -------------
Gross profit 888,609 946,693 1,155,730
Administrative expenses (3,388,445) (4,097,029) (6,771,152)
Other operating income 202,514 323,496 580,880
------------ ------------ -------------
Operating loss (2,297,322) (2,826,840) (5,034,542)
Finance income 1,500 654 1,781
Finance expense (122,145) (115,820) (749,845)
Loss on ordinary activities
before taxation (2,417,967) (2,942,006) (5,782,606)
Taxation 52,000 129,962 589,020
Loss for the period (2,365,967) (2,812,044) (5,193,586)
============ ============ =============
Loss per share - basic
and fully diluted (0.22p) (0.27p) (0.39p)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIODED 30 JUNE 2017
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2017 2016 2016
Unaudited Unaudited Audited
GBP GBP GBP
Loss for the period (2,365,967) (2,812,044) (5,193,586)
Foreign exchange difference
arising on consolidation 32,024 (12,347) (18,187)
------------ ------------ -------------
Total comprehensive loss
for the period
attributable to equity
holders (2,333,943) (2,824,391) (5,211,773)
============ ============ =============
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE
2017
As at As at As at
30 June 30 June 31 Dec
2017 2016 2016
Unaudited Unaudited Audited
GBP GBP GBP
Assets
Non-current assets
Intangible assets 4,469,706 4,479,709 4,751,607
Property, plant
and equipment 24,504 105,538 44,925
-------------
4,494,210 4,585,247 4,796,532
Current assets
Trade and other
receivables 723,724 821,718 1,075,456
Current tax asset 62,028 - 456,260
Cash and cash equivalents 407,582 348,790 2,026,764
------------- -------------- -------------
1,193,334 1,170,508 3,558,480
Current liabilities
Trade and other
payables (2,036,040) (1,736,882) (2,337,253)
Current portion
of borrowings (3,243,869) (4,301) (5,222,674)
-------------
(5,279,909) (1,741,183) (7,559,927)
Net current liabilities (4,086,575) (570,675) (4,001,447)
------------- -------------- -------------
407,635 4,014,572 795,085
Non-current liabilities
Non-current borrowings (587) (2,893,305) (4,925)
Deferred Tax liabilities (302,400) (420,800) (354,400)
-------------
Net assets 104,648 700,467 435,760
============= ============== =============
Equity
Share capital 10,543,986 10,404,372 10,475,177
Share premium account 12,922,636 8,985,383 10,991,445
Share based payment
reserve 239,985 969,605 262,447
Merger relief reserve 11,605,556 11,605,556 11,605,556
Translation Reserve (76,703) (38,839) (44,679)
Capital reserve 209,791 209,791 209,791
Equity reserve 44,160 44,160 44,160
Other reserve (9,225,108) (9,225,108) (9,225,108)
Retained earnings (26,159,655) (22,254,452) (23,883,029)
------------- -------------- -------------
Total equity 104,648 700,467 435,760
============= ============== =============
John Kennedy
Director
CONSOLIDATED STATEMENT OF CASH FLOWS
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2017 2016 2016
Unaudited Unaudited Audited
GBP GBP GBP
Cash flows from operating
activities
Loss for the period (2,417,967) (2,812,044) (5,782,606)
Adjustments for:
Depreciation of property,
plant and equipment 22,834 49,810 94,574
Amortisation of intangible
assets 463,720 677,917 934,937
Impairment of intangibles
assets 25,181 35,668 431,480
Loss/(profit) on disposal
of assets - (2,460) 12,689
Financial income (1,500) (654) (1,781)
Financial expense 122,145 115,820 749,845
Foreign exchange difference (8,204) (164) 10,981
Share-based payments 34,855 34,639 80,446
(1,758,936) (1,901,468) (3,469,435)
Decrease/(increase) in
trade and other receivables 347,732 1,058,026 804,289
Increase/(decrease) in
trade and other payables (301,213) (344,504) 322,267
-------------
Cash used in operations (1,712,417) (1,187,946) (2,342,879)
Current tax credits 394,232 684,277 684,277
------------- ------------ -------------
Net cash used in operating
activities (1,318,185) (503,669) (1,658,602)
Cash flows from investing
activities
Interest received 1,500 654 1,781
Purchase of intangible
assets (207,000) (192,685) (1,117,415)
Purchase of property,
plant and equipment (2,413) (28,114) (28,113)
Sale of property, plant
and equipment - 2,460 2,459
------------- ------------ -------------
Net cash used in investing
activities (207,913) (217,685) (1,141,288)
Cash flows from financing
activities
Interest paid (122,145) (95,820) (209,011)
Issue of share capital - 421 2,077,288
New HP Loans - 11,699 -
New long-term loan - 900,000 900,000
New convertible loan - - 1,800,000
Repayments of finance
lease agreements (2,963) (4,926) (5,622)
Repayment of other borrowings - - -
------------- ------------ -------------
Net cash from financing
activities (125,108) 812,004 4,574,354
Net increase/(decrease)
in cash & cash equivalents (1,651,206) 90,650 1,774,464
Cash and cash equivalents
at beginning of period 2,026,764 270,487 270,487
Exchange differences on
cash and cash equivalents 32,024 (12,347) (18,187)
------------- ------------ -------------
Cash and cash equivalents
at end of period 407,582 348,790 2,026,764
============= ============ =============
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share Capital Translation Merger Share Equity Other Retained Total
capital premium reserve Reserve relief based reserve reserve deficit
reserve payment
reserve
GBP GBP GBP GBP GBP GBP GBP GBP GBP GBP
At 1 January
2016 10,195,024 8,703,332 209,791 (26,492) 11,605,556 934,966 535,138 (9,225,108) (19,442,409) 3,489,798
=========================== ===================== ======================== ============================= ============================ ========================= ========================= ======================== ============= ============
Loss for
the year - - - - - - - - (2,812,044) (2,812,044)
Other
Comprehensive
Income - - - (12,347) - - - - - (12,347)
--------------------------- --------------------- ------------------------ ----------------------------- ---------------------------- ------------------------- ------------------------- ------------------------ ------------- ------------
Total
comprehensive
income
for the
period
attributable
to equity
holders - - - (12,347) - - - - (2,812,044) (2,824,391)
=========================== ===================== ======================== ============================= ============================ ========================= ========================= ======================== ============= ============
Issue of
shares 209,348 282,051 - - - - (490,978) - - 421
Equity - - - - - - - - -
element
of
convertible
loan
Share based
payments - - - - - 34,639 - - - 34,639
Share issue - - - - - - - - - -
costs
--------------------------- --------------------- ------------------------ ----------------------------- ---------------------------- ------------------------- ------------------------- ------------------------ ------------- ------------
Total
transactions
with owners 209,348 282,051 - (12,347) - 34,639 (490,978) - - 35,060
=========================== ===================== ======================== ============================= ============================ ========================= ========================= ======================== ============= ============
Total movement
in
shareholder's
equity 209,348 282,051 - (12,347) - 34,639 (490,978) - (2,812,044) 35,060
=========================== ===================== ======================== ============================= ============================ ========================= ========================= ======================== ============= ============
At 30 June
2016 10,404,372 8,985,383 209,791 (38,839) 11,605,556 969,605 44,160 (9,225,108) (22,254,453) 700,467
=========================== ===================== ======================== ============================= ============================ ========================= ========================= ======================== ============= ============
At 1 July
2016 10,404,372 8,985,383 209,791 (38,839) 11,605,556 969,605 44,160 (9,225,108) (22,254,453) 700,467
=========================== ===================== ======================== ============================= ============================ ========================= ========================= ======================== ============= ============
Loss for
the year - - - - - - - - (2,381,541) (2,381,541)
Other
Comprehensive
Income - - - (5,840) - - - - - (5,840)
--------------------------- --------------------- ------------------------ ----------------------------- ---------------------------- ------------------------- ------------------------- ------------------------ ------------- ------------
Total
comprehensive
income
for the
period
attributable
to equity
holders - - - (5,840) - - - - (2,381,541) (2,387,381)
=========================== ===================== ======================== ============================= ============================ ========================= ========================= ======================== ============= ============
Issue of
shares 70,805 2,006,062 - - - - - - - 2,076,867
Equity - - - - - - - - - -
element
of
convertible
loan
Share based
payments - - - - - 45,807 - - - 45,807
Share based
transfer - - - - - (752,965) - - 752,965 -
Share issue - - - - - - - - - -
costs
--------------------------- --------------------- ------------------------ ----------------------------- ---------------------------- ------------------------- ------------------------- ------------------------ ------------- ------------
Total
transactions
with owners 70,805 2,006,062 - - - (707,158) - - 752,965 2,122,674
=========================== ===================== ======================== ============================= ============================ ========================= ========================= ======================== ============= ============
Total movement
in
shareholder's
equity 70,805 2,006,062 - (18,187) - (707,158) - - (1,628,576) (264,707)
=========================== ===================== ======================== ============================= ============================ ========================= ========================= ======================== ============= ============
At 31 December
2016 10,475,177 10,991,445 209,791 (44,679) 11,605,556 262,447 44,160 (9,225,108) (23,883,029) 435,760
=========================== ===================== ======================== ============================= ============================ ========================= ========================= ======================== ============= ============
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIODED 30 JUNE 2017
Share Share Capital Translation Merger Share Equity Other Retained Total
capital premium reserve Reserve relief based reserve reserve earnings
reserve payment
reserve
GBP GBP GBP GBP GBP GBP GBP GBP GBP GBP
At 1 January
2017 10,475,177 10,991,445 209,791 (44,679) 11,605,556 262,447 44,160 (9,225,108) (23,883,029) 435,760
=========================== ===================== ======================== ============================= ============================ ========================= ========================= ======================== ============= ============
Loss for
the year - - - - - - - - (2,365,967) (2,365,967)
Other
Comprehensive
Income - - - (32,024) - - - - 32,024 -
--------------------------- --------------------- ------------------------ ----------------------------- ---------------------------- ------------------------- ------------------------- ------------------------ ------------- ------------
Total
comprehensive
income
for the
period
attributable
to equity
holders - - - (32,024) - - - - (2,333,943) (2,333,943)
=========================== ===================== ======================== ============================= ============================ ========================= ========================= ======================== ============= ============
Issue of
shares 68,809 1,931,191 - - - - - - - 2,000,000
Equity - - - - - - - -
element - -
of
convertible
loan
Share based
payments - - - - - 34,855 - - - 34,855
Share based
transfer - - - - - (57,317) - - 57,317 -
Share issue - - - - - - - - -
costs
--------------------------- --------------------- ------------------------ ----------------------------- ---------------------------- ------------------------- ------------------------- ------------------------ ------------- ------------
Total
transactions
with owners 68,809 1,931,191 - - - (22,462) - - 57,317 2,034,855
=========================== ===================== ======================== ============================= ============================ ========================= ========================= ======================== ============= ============
At 30 June
2017 10,543,986 12,922,636 209,791 (76,703) 11,605,556 239,985 44,160 (9,225,108) 26,159,655 104,648
=========================== ===================== ======================== ============================= ============================ ========================= ========================= ======================== ============= ============
NOTES TO THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL
STATEMENTS
FOR THE SIX MONTHSED 30 JUNE 2017
1. GENERAL INFORMATION
Proxama PLC ("the Company") and its subsidiary Proxama Solutions
Ltd (together 'the Group') specialise in mobile technologies
through two businesses:
Location Sciences division:
A mobile location data and intelligence business that helps
companies connect the online world with the offline world using
mobile location technology data. It combines cutting-edge mobile
location data collection with proprietary machine learning
analytics to create new value and insights from location
information.
Digital Payments division:
Provides end-to-end digital solutions to banks and card issuers
for EMV enablement, smart card issuance and lifecycle management,
PIN management and electronic PIN delivery. The Company's suite of
smart card solutions can uplift existing card processing platforms
to EMV and other smart card capability, providing a low-risk, quick
to market and cost-effective smart migration path. The Company
works with financial and non-financial card issuers and processors
who use the Company solutions to manage hundreds of millions of EMV
and other smart card types, including transit and eID, around the
world.
2. BASIS OF PREPARATION
The financial information has been prepared in accordance with
International Financial Reporting Standards ("IFRS") as adopted by
the European Union, IFRIC interpretations and with those parts of
the Companies Act 2006 applicable to companies reporting under
IFRS. The accounting policies adopted are consistent with those of
the financial statements for the year ended 31 December 2016, as
described in those financial statements.
The figures for the six-month periods ended 30 June 2017 and 30
June 2016 have not been audited. The figures for the year ended 31
December 2016 have been extracted from, but do not constitute, the
consolidated financial statements of Proxama PLC for that year.
Those financial statements have been delivered to the Registrar of
Companies and included an auditors' report, which was unqualified
and did not contain a statement under Section 498(2) or Section
498(3) Companies Act 2006.
3. LOSS PER SHARE
Six months Six months Year ended
ended ended 31 December
30 June 30 June 2016
2017 2016 Audited
Unaudited Unaudited
GBP GBP GBP
Loss attributable
to shareholders (2,365,967) (2,812,044) (5,193,586)
-------------- -------------- --------------
Loss attributable
to shareholders
excluding exceptional
items (2,365,967) (2,812,044) (5,193,586)
-------------- -------------- --------------
Number Number Number
Weighted average number
of shares (basic) 1,087,126,414 1,030,027,685 1,332,551,074
-------------- -------------- --------------
The calculation of basic loss per share is based on loss after
taxation and the weighted average number of ordinary shares of 1p
each in issue during the period.
4. SEGMENTAL ANALYSIS
Operating segments are based on internal reports about
components of the Company, which are regularly reviewed and used by
the Board of Directors being the Chief Operating Decision Maker
("CODM") for strategic decision making and resource allocation, in
order to allocate resources to the segment and to assess its
performance.
The Group's operations in 2016 were structured as four trading
companies and its financial reporting is reported to the CODM
information on two segments: Digital Payments and Location Sciences
(formerly Proximity Marketing). The Digital Payments segment
predominantly focuses on the migration of Card Payment systems to
the EMV Standard known as "Chip and Pin" from old magnetic stripe
systems. The Location Sciences segment centres on providing mobile
location based data, media and verification services.
It should be noted that from July 2016, the reporting
methodology for management accounts changed such that the all
operating expenses formerly classified as Group were included in
the Location Sciences division, with Group no longer treated as an
internal reporting division. Thus for comparison purposes in prior
periods Group should be added to the Location Sciences division
It should also be noted that a segmental analysis of the Balance
Sheet is not part of routine management reporting and consequently
no segmental analysis of assets is shown here
5. SEGMENTAL ANALYSIS (CONTINUED)
An analysis of revenue is as follows:
Six months Six months Year ended
ended ended 31 December
30 June 30 June 2016
2017 2016 Audited
Unaudited Unaudited
GBP GBP GBP
Digital Payments 921,120 1,131,800 1,610,049
Location Sciences 48,952 74,966 204,189
Total revenue 970,072 1,206,766 1,814,238
An analysis of Loss before tax is as follows:
Six months Six months Year ended
ended ended 31 December
30 June 30 June 2016
2017 2016 Audited
Unaudited Unaudited
GBP GBP GBP
Digital Payments (176,511) (587,755) (804,506)
Location Sciences (2,241,426) (558,562) (1,569,400)
Group (1,795,689) (3,718,951)
Total loss before tax (2,417,937) (2,942,006) (6,092,857)
An analysis of EBITDA is as follows:
Six months Six months Year ended
ended ended 31 December
30 June 30 June 2016
2017 2016 Audited
Unaudited Unaudited
GBP GBP GBP
Digital Payments (176,511) (587,755) (804,506)
Location Sciences (1,614,250) (558,562) (1,569,400)
Group (954,078) (2,614,636)
Total EBITDA (1,790,761) (2,100,395) (4,988,542)
6. POST BALANCE SHEET EVENTS
The Group became fully debt free through a combination of
raising GBP3.1m in July 2017, redeeming fully the GBP2.5m loan with
Barclays, and conversion of the GBP0.4m White Angle Ltd loan.
Darwin hold 558,352,249 share warrants at an issue price of
0.1692pence per share. These warrants can be exercised when the
share price reaches 0.1692 pence per share. For comparison the
share price at 31 August was 0.03 pence per share.
Barclays hold 5,863,021,931 at an issue price of 0.03 pence per
share. This equates to 29.9% of the Company's share capital, and
were received in exchange for the release of the GBP2.5m loan
facility. A Lock-in and Orderly Market Agreement ("LOMA") was
agreed. The warrants cannot be exercised for six months from the
agreement (until 26 January 2018) without the prior written consent
of the Company. A further provision was agreed where the warrants
cannot be exercised for an additional six months (until 26th July
2018) other than through the Company's Broker. In accordance with
the terms of the loan redemption no funds are payable by Barclays
on exercise of warrants.
7. AVAILABILITY OF HALF-YEAR REPORT
Copies of the half-year report are available on request to
members of the public from the Company's registered office at 7/28
Eastcastle Street, London, W1W 8DH. The half-year report can also
be viewed at www.proxama.com/investors.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR DBGDCXBBBGRR
(END) Dow Jones Newswires
September 18, 2017 02:01 ET (06:01 GMT)
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