REG - ActiveOps PLC - Interim Results
14/11/2023 07:15
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RNS Number : 3032T ActiveOps PLC 14 November 2023
14 November 2023
ActiveOps Plc
("ActiveOps", "the Company", "the Group")
Interim Results for the six months ended 30 September 2023
ActiveOps plc (AIM: AOM), a leading provider of Decision Intelligence for
service operations, is pleased to announce its unaudited results for the six
months ended 30 September 2023.
Financial Highlights:
Six months ended 30 September H1 FY24 H1 FY23 Change
Annual Recurring Revenue "ARR"(1) £23.7m £22.1m +7%
Net Revenue Retention "NRR"(2) on an annualised basis 104% 109% -5ppts
Total Revenue £13.1m £12.3m +7%
Software & Subscription revenue £11.8m £10.9m +8%
Training & Implementation "T&I" revenue £1.3m £1.4m -1%
Gross margin 84% 81% +3ppts
Adjusted EBITDA(3) £0.8m £0.3m +167%
Profit/(loss) before tax £0.1m (£0.5m) -
Earnings/ (loss) per share on continuing operations (0.14p) (0.99p) +86%
Net cash and cash equivalents £9.9m £11.0m -10%
· ARR(1) growth of 7%, or 15% at constant currency
· Growth of constant currency NRR to 111% thanks to healthy expansions
performance
· Adjusted EBITDA(3) up 167% to £0.8m (H1 FY23: £0.3m), driven by consistently
strong gross margins and good cost control
· Achievement of Profit before Tax
· Cash conversion(4) negative in the period due to seasonality of renewals
cycle. Expected to move to a positive position before year end with
significant renewals in H2
· Balance sheet remains debt free with £9.9m cash in the bank (H1 FY23:
£11.0m), with a balance of £12.0m by 31 October 23
Operational Highlights
· Growth in the period largely driven by expansion within existing customer
base, but supported by the addition of two new logos which offer large land
& expand opportunities in the future. Six of the Group's top 10 accounts
expanded usage of ActiveOps products in the half
· Launch of ControliQ Series 3, which enables customers to take advantage of the
latest in AI tools for the back-office
· Ongoing investment in innovation will see the launch of ControliQ Series 4 in
2024
Outlook
· Successful re-brand and increased focus on marketing resulting in a better
developed sales pipeline, however continuing to see extended timescales for
completing the contracting phase of sales, due to the wider macro environment
· Confident in an acceleration in ARR growth rate by year end and delivery of
revenue and EBITDA for FY24 in line with Board expectations
Richard Jeffery, Chief Executive Officer of ActiveOps plc, commented:
"Every day, operational leaders are being asked to do more with less. The
investments we have made into our solutions are helping our enterprise
customers do just that, with increasing ease. The first half of the year has
seen the launch of the most sophisticated version of our ControliQ offering to
date and we have been successful in expanding the scope of use of our products
within our customer base. While contracting cycles continue to be elongated,
our focused marketing efforts mean our sales pipeline continues to build.
"The growing breadth and increasing sophistication of our offering, our
blue-chip customer base, geographic reach, and new pricing tiers, all provide
us with the opportunity to accelerate ARR growth in H2 and beyond and we look
to the future with continued confidence."
Footnote to Financial highlights
The above non-GAAP measures are unaudited
1. Annual Recurring Revenue is recurring revenue from contracts with
customers
2. Net Revenue Retention is the percentage of recurring revenue
retained from existing customers
3. Adjusted EBITDA is used by management to assess the trading
performance of the business. Defined as Operating profit before depreciation,
amortisation, share-based payment charges and exceptional items and includes
FX differences.
4. Cash conversion is defined as Cash generated from Operations in the
Consolidated Statement of Cash Flows, adjusted to exclude cash payments for
exceptional items as a percentage of adjusted EBITDA.
For more information, please contact:
ActiveOps Via Alma
Richard Jeffery, Chief Executive Officer www.activeops.com (http://www.activeops.com/)
Ken Smith, Chief Financial Officer
Investec Bank plc +44 (0)20 7597 5970
Corporate Broking & PLC Advisory
Patrick Robb / David Anderson
Alma + 44(0) 203 405 0205
Caroline Forde / Will Ellis Hancock
About ActiveOps
The Company's offerings provide predictive and prescriptive insight to help
service operations make better decisions - faster. The Company's AI-powered
SaaS solutions are underpinned by 15+ years of operational data and its AOM
methodology that's proven to drive cross department decision-making.
With Decision Intelligence, ActiveOps' customers deliver MORE - release 20%+
capacity within the first 12 months and boost productivity by 30%+ leading to
MORE business impact. Customer turnaround times are improved substantially,
costs are reduced, SLAs are met, and employees are happier and more engaged.
The Company has 180 employees, serving a global customer base of over 80
enterprise customers from offices in the UK, Ireland,
USA, Australia, India and South Africa. The Group's customers are
predominantly in the banking, insurance, healthcare administration and
business process outsourcing (BPO) sectors, including Nationwide, TD Bank,
Elevance and DXC Technology.
CEO Statement
The half has seen solid commercial, financial and operational progress across
the Group, thanks to the successful execution of our growth strategy by the
whole ActiveOps team. We continue to deliver on our clear targets, both in
terms of our land & expand sales strategy and product roadmap,
underpinning our performance and continued success. We have entered the second
half of the year with a well-developed sales and renewal pipeline across all
markets and offerings, providing confidence in a strong H2 performance and
acceleration in our ARR growth rate.
In the half we achieved two customer wins and multiple customer expansions, as
demonstrated by the growth in our constant currency NRR to 111% (H1 FY23:
109%). Highlights include Nedbank expanding its use of ControliQ into new
areas and our first major WorkiQ customer adopting ControliQ. CaseworkiQ
continues to generate interest across our customer base, with amongst others a
second leading UK bank and a large managed services organisation adopting the
product alongside their existing ControliQ deployments. Looking ahead, we
anticipate expansion continuing to be a key driver for the Group, as we see a
growing trend of organisations looking to adopt enterprise wide solutions. We
are also starting to see additional areas of demand, such as our US based
WorkiQ customers exploring the adoption of ControliQ.
With the launch of ControliQ Series 3 in the period, our product teams have
begun the rollout and implementation of Artificial Intelligence (AI),
especially Machine Learning (ML) technologies, increasing the competitive
strength and attractiveness of our offerings. We have simultaneously carried
out a repositioning of the business as a provider of Decision Intelligence for
service operations, blending AI and human intelligence to deliver the most
complete and useful set of predictive and prescriptive insights for service
operations. The message is resonating well across the customer base and
target markets at a time of general macroeconomic caution, when companies wish
to do more with less, providing a clear framework for our continued growth.
Robust financial performance
Financially the Group continues to perform well and thanks to the ongoing
success of our land & expand sales strategy, low levels of churn and high
recurring revenues, we are in line to achieve both our revenue and EBITDA
expectations for the full year.
Overall Group revenue grew 7% in the period to £13.1m (H1 2023: £12.3m).
Within this, SaaS revenues grew by 8% to £11.8m (H1 2023: £10.9m), or 13% at
constant currency, driving a 7% growth in exit Annual Recurring Revenue (ARR)
to £23.7m (September 2022: £22.1m). In constant currency terms exit ARR
growth was 15%. Training & Implementation revenues of £1.3m in the period
were broadly consistent with the prior year (H1 2023: £1.4m).
The Group delivered significant EBITDA growth in the half of 167% to £0.8m
(H1 2023: £0.3m), within the context of less favourable FX movement in the
period, underscoring the strength of the Company's performance in the year to
date. This has translated into the Group's profit before tax of £0.1m (H1
2023: loss of £0.5m).
Through prudent management of the business, the Group remains well capitalised
with cash at bank as at 30 September 2023 of £9.9m (H1 2023: £11.0m),
increasing to £12.0m by 31 October. With a solid balance sheet, strong gross
margins, high levels of recurring revenues and good cash collection, the Group
is in a strong position to continue to grow and invest in its offering in
spite of the difficult macroeconomic environment.
Product development and innovation
The development of our product offering has continued to accelerate in the
first half of the year, in line with our stated product road map. The
innovations we are making across the product suite will provide customers with
increasingly sophisticated tools that are able to help manage the growing
complexity of the back-office and differentiate us from competitors.
ControliQ
In the half we successfully introduced our new tiered licensing and pricing
model for ControliQ, introducing a series of offerings to enable customers to
select the level of capabilities that suit their needs, moving through the
series as their ambitions and requirements increase.
As part of this, we launched ControliQ Series 3, which has been enhanced with
additional AI-based features that enable customers to further improve their
performance while removing management effort. The first to launch is Smart
Planning, which automates forecasting and planning, reducing the effort
consumed in the process whilst increasing accuracy. Series 4 will be released
in the first half of 2024, which will include additional AI and ML based
features, including automatic skills cataloguing, a suite of new senior leader
insights and the Company's first GenerativeAI based app; a virtual coach which
predicts the interventions required by operations leaders and can prescribe
the best action to take.
The upgrades we are making across ControliQ have been focused on helping our
customers make better decisions, faster. The speed of development and launch
of these powerful AI features have been made possible by ActiveOps' long
heritage in the world of back-office optimisation and the volume of data
flowing through its existing platforms, on which to train and test algorithms.
Our team was well placed to quickly conduct discovery work around where we
could use Generative AI within our product set and further expand our use of
AI within the products.
The advanced features within Series 3 are proving a powerful sales tool for
both existing and new customers. We are in the process of transitioning our
existing customer base onto Series 3, generally at the point of renewal, which
thanks to the re-platforming work carried out in previous years is a
straightforward process and have been pleased with the progress achieved to
date.
WorkiQ
The main focus for WorkiQ in the half has been the work being done ahead of
the launch of the Cloud version. By hosting WorkiQ in the Cloud, we will be
able to deploy it more rapidly across new customers and get new users within
existing customers set up quicker. We are targeting a release for this by the
end of FY24.
CaseworkiQ
For CaseworkiQ the team has been focused on bringing it onto the same
technical platform as ControliQ, which is now complete. In the half we
successfully moved our flagship CaseworkiQ customer, a leading UK bank, which
is also a large ControliQ customer onto the integrated platform. The
integration of the two makes it easier for customers to use both products
simultaneously, within one platform, helping to facilitate ease of use across
our solutions and further improve the stickiness of our products. The
capabilities of the solution have also evolved with the addition of new live
status dashboards and case flight-path tracking.
Growth of our customer base: Land & Expand
We estimate our total addressable market being c.£900m per annum, of which
£90m relates to the cross and upsell of our solutions to our existing
customers. We remain focussed on expanding our footprint in our existing
customer base whilst delivering against our customer acquisition strategy,
which is tightly focussed on banks, insurers and BPS providers in our target
geographies.
Our land & expand strategy, low levels of churn and good recurring
revenues continue to support the Group's overall performance. In spite of the
widely reported elongation of corporate sales and contracting cycles, the
Group secured two new customers in the first half and 11 significant customer
expansion deals, across all products and geographies.
Retention rates remain strong across all territories, as the need for service
operations to improve performance and enhance both customer and employee
experience intensifies as a result of the macro-economic environment and ever
increasing expectations of both customers and employees. Managing large,
complex service operations requires thousands of decisions to be made daily by
hundreds of managers. Unlike so many operations leaders, our customers have
the data and insights at their finger tips to ensure that the right decisions
are made and in a timely and efficient manner. The aggregate effect on both
the performance of the operation and efficient use of management time is
transformational. Our latest predictive and prescriptive capabilities,
leveraging AI trained on the 15+ years of data we hold, are offering our
existing customers new levels of performance improvement.
The demonstrable results we achieve for our customers are incredibly powerful
and support our land & expand strategy. Savings of £7m in 9 months for
one customer and an average capacity gain of 20% in the first year for another
are only two examples of how our products help, but they are part of a wider
group of examples that send a powerful message to potential and existing
customers alike.
Our remodelled licencing structure is also anticipated to offer our customers
greater flexibility over how they access our latest developments and help
drive growth in the future.
Our marketing function has developed significantly since Bhavesh Vaghela's
appointment as CMO in the last financial year. The marketing team has been
working hard on various projects to raise brand awareness and generate sales
leads and we are starting to see the green shoots coming though, as the
quality of leads we are generating is far better, helping improve the quality
of deals in our pipeline, underpinning our confidence in the Group's outlook.
Our customer conferences this year have been popular, with overall attendance
across the three conferences up 40% on the prior year. Here, the Company
successfully launched its new positioning, focused on the provision of
Decision Intelligence for Service Operations. Decision Intelligence, as
defined by IDC, is 'the discipline of using AI and data science to improve
business decision making, and it's enabling organisations to cut through this
complexity.' This is the very crux of what we do for operations teams. The
Group's products are all designed to help customers improve their decision
making and do more with what they have. Decision Intelligence is being
researched and sponsored by key analyst firms, like Gartner, and this rebrand
better positions us in this space and indicates clearly how we help our
customers.
Our partnership with Microsoft continues to support our overall performance.
The renewal of one of our biggest customers in the half, a UK bank, was the
first major transaction via the Microsoft Marketplace, validating the appeal
of partnering with Microsoft. This is one of the aspects of the relationship
we believe we can leverage to make a real difference in the long term.
The market need for our technology is clear and reflected by our healthy
levels of pipeline opportunities, which give us confidence in an acceleration
in our ARR growth rate by year end.
Confident Outlook
We are well set for the future and have made a robust start to the second half
of the year, with three significant expansions with existing banking
customers, closed so far. The breadth and increasing sophistication of our
offering, geographic reach, and new pricing tiers, all provide us with
confidence in a strong H2 performance and beyond.
The Group remains well capitalised, with low levels of churn and high levels
of ARR, providing a strong position to continue measured investment in
innovation, to increase the size of our opportunity and attractiveness of our
offering to customers.
With growth against all of our key KPIs and a healthy sales pipeline, we
remain on track to deliver a full year in line with the Board's Revenue and
EBITDA expectations.
Richard Jeffery
Group Chief Executive Officer
Chief Financial Officer's Report
Financial Review
I am pleased to report a strong financial performance by the Group for the
first half of the year, with growing ARR and total revenue, delivering a solid
adjusted EBITDA profit with a strong cash position for the Group.
Revenue
ARR is a key performance metric for the Group. Included within ARR are
software licence fees along with recurring support revenue where a customer
has purchased an ongoing care package.
ActiveOps' ARR at 30 September 2023 totalled £23.7m (30 September 22:
£22.1m), representing year-on-year growth of 7%, delivered through the
expansion of our footprint in existing customer accounts and sales to new
customers. Furthermore, ARR growth, measured in constant currency, exceeded
15%.
Total revenue for the Group at £13.1m (H1 FY23: £12.3m) was 8% ahead of the
same period last year with recurring software & subscription revenues
increasing by 7% to £11.8m (H1 FY23: £10.9m) on a reported basis. Software
& subscription revenue, measured on a constant currency basis, showed an
increase of 13%.
Training & Implementation revenues at £1.3m (H1 FY23: £1.4m) were
slightly behind prior year primarily due to timing of implementations being
delayed or extended by customers as well as slow T&I sales in H1 FY24.
Operating Profit and Margins
Gross margins improved to 84% (H1 FY23: 81%). Software & subscription
margins increased to 87% (H1 FY23: 84%), as a result of higher revenues and
good cost control. T&I margins were strong at 55% (H1 FY23: 59%), T&I
revenues and margins vary according to the product mix (between WorkiQ,
ControliQ and CaseworkiQ), the location of implementations (with higher cost
jurisdictions delivering a higher margin), and the level of support required
by ActiveOps coaches on each delivery.
Operating expenses (excluding share-based payments, depreciation and
amortisation) increased by 5% to £10.2m (H1 FY23: £9.7m). Furthermore, H1
FY23 operating expenses benefited from a significant foreign exchange gain.
Adjusted EBITDA was a positive £0.8m (H1 FY23: £0.3m), reflecting solid
revenue growth and gross margins, along with good cost control in the face of
inflationary pressures.
Foreign Exchange
The Group has 62% (H1 FY23: 53%) of revenues invoiced in currencies other than
GBP, with the increase in non GBP invoices reflecting a difference in the
timing of invoices raised. Exchange rates have been volatile over the period
with the pound strengthening in particular against the Australian Dollar, US
Dollar and Canadian Dollar.
Product and Technology Expenditure
Total expenditure on product management, research, development and support in
the first half increased to £2.7m (H1 FY23: £2.5m) as investment made in
FY23 rolled into the current year. Capitalised labour of £0.5m (H1 FY23:
£0.3m) related to the development of new product features.
Depreciation & Amortisation
Depreciation & amortisation of £0.5m (H1 FY23: £0.5m) principally
comprised intangible amortisation following the acquisition of the OpenConnect
entity in 2019 and the Australian entities in 2017.
Taxation
The Group operates a transfer pricing policy to ensure that profits are
correctly recorded in each of the jurisdictions in which it operates.
ActiveOps has brought forward tax losses in the UK and Irish legal entities.
Statutory Results
The Group reported a profit before tax for the period of £0.1m (H1 FY23: loss
of £0.6m).
Earnings per Share
Basic Earnings per Share for continuing operations was a loss of 0.14p (H1
FY23: (0.99p)).
Dividend
The Board has determined that no dividend will be paid in the period. The
Group is primarily seeking to achieve capital growth for shareholders. It is
the Board's intention during the current phase of the Group's development to
retain distributable profits from the business to the extent they are
generated.
Cash flow
Cash flow from operations in the first half of the year was an outflow of
£4.9m. The negative cashflow position in H1 is attributable to the phasing of
renewals over the year, and the timing of invoices raised. A significant level
of renewals take place in the second half of the year and the timing of
payments of annual in advance bills significantly impacts the cash position at
30 September 2023. The Group received significant cash inflows in October 2023
and had cash of £12.0m at 31 October 2023.
Balance Sheet
The Group has maintained a strong balance sheet position with a cash position
of £9.9m (H1 FY23: £11.0m) and net assets at 30 September 2023 of £8.0m,
(31 March 2023: £7.9m).
Management Statement
This Interim Management Report (IMR) has been prepared solely to provide
additional information to shareholders to assess the Group's strategies and
the potential for those strategies to succeed. The IMR should not be relied on
by any other party or for any other purpose.
The IMR contains certain forward-looking statements. These statements are made
by the Directors in good faith based on the information available to them up
to the time of their approval of this report but such statements should be
treated with caution due to the inherent uncertainties, including both
economic and business risk factors, underlying any such forward-looking
information.
Unaudited consolidated condensed statement of profit and loss and other
comprehensive income for the six months period to September 2023
Six months ended 30 September 2023 Six months ended 30 September 2022
Notes £000 Unaudited £000 Unaudited
Revenue 3 13,060 12,291
Cost of sales 4 (2,095) (2,288)
Gross profit 10,965 10,003
Administrative expense excluding share options charges, depreciation, (10,173) (9,662)
amortisation and exceptional items
Administrative expense - share option charges only (175) (390)
Administrative expense - depreciation and amortisation only (521) (523)
Total Administrative expenses (10,869) (10,575)
Operating profit / (loss) 96 (572)
Finance income 19 2
Financing costs (11) (36)
Profit / (loss) before taxation 104 (606)
Taxation (201) (104)
Loss for the period (97) (710)
Basic and diluted loss per share 5 (0.14p) (0.99p)
Other comprehensive income
Items that may be subsequently reclassified to profit or loss:
Exchange differences on translating foreign operations 11 120
Total comprehensive loss for the period attributable to the owners of the (86) (590)
parent company
ActiveOps plc
Unaudited consolidated condensed statement of financial position
At 30 September 2023 At 31 March 2023
Notes £000 Unaudited £000 Audited
Non-current assets
Intangible assets 5,915 5,735
Property, plant and equipment 140 162
Right-of-use assets 351 419
Deferred tax assets 210 217
Total non-current assets 6,616 6,533
Current assets
Trade and other receivables 6 4,643 6,373
Corporation tax receivable 16 -
Cash and cash equivalents 9,896 15,377
Total current assets 14,555 21,750
Total assets 21,171 28,283
Equity
Share capital 71 71
Share premium account 6,444 6,444
Share option reserve 768 593
Foreign exchange reserve (213) (224)
Retained earnings 886 983
Total equity 7,956 7,867
Non-Current liabilities
Lease liabilities 303 364
Provisions 119 102
Deferred tax liabilities 802 889
Total non-current liabilities 1,224 1,355
Current liabilities
Trade and other payables 7 11,692 18,860
Lease liabilities 68 100
Corporation tax payable 231 101
Total current liabilities 11,991 19,061
Total equity and liabilities 21,171 28,283
ActiveOps plc
Unaudited consolidated condensed statement of cash flows
Six months ended 30 September 2023 Six months ended 30 September 2022
Notes £000 Unaudited £000 Unaudited
Loss after tax (97) (710)
Taxation 201 104
Finance income (19) (2)
Financing costs 11 36
Operating profit / (loss) 96 (572)
Adjustments for:
Depreciation property, plant and equipment 59 64
Depreciation right-of-use asset 67 72
Amortisation of intangible assets 395 387
Share option charge 175 390
Change in trade and other receivables 6 1,730 183
Change in trade and other payables and provisions 7 (7,151) (2,028)
Cash used in operations (4,629) (1,504)
Interest paid (11) (13)
Taxation paid (172) (129)
Net cash used in operating activities (4,812) (1,646)
Investing activities
Purchase of property, plant and equipment (39) (40)
Purchase of software (542) (316)
Interest received 19 2
Net cash used in investing activities (562) (354)
Financing activities
Repayment of lease liabilities (91) (111)
Net cash used in financing activities (91) (111)
Net change in cash and cash equivalents (5,465) (2,111)
Cash and cash equivalents at beginning of the period 15,377 13,753
Effect of foreign exchange on cash and cash equivalents (16) (666)
Cash and cash equivalents at end of the period 9,896 10,976
ActiveOps plc
Unaudited consolidated condensed statement of changes in equity
Share capital Share premium Share option reserve Foreign exchange reserve Retained earnings Total
£000 £000 £000 £000
At 31 March 2022 (audited) 71 6,444 566 (43) 1,480 8,518
Loss for the period - - - - (710) (710)
Exchange differences on translating foreign operations - - - 120 - 120
Total comprehensive loss for the period - - - 120 (710) (590)
Transactions with owners, recorded directly in equity
Share based payment charge - - 390 - - 390
Total transactions with owners - - 390 - - 390
At 30 September 2022 (unaudited) 71 6,444 956 77 770 8,318
At 31 March 2023 (audited) 71 6,444 593 (224) 983 7,867
Loss for the period - - - - (97) (97)
Exchange differences on translating foreign operations - - - 11 - 11
Total comprehensive loss for the period - - - 11 (97) (86)
Transactions with owners, recorded directly in equity
Share based payment charge - - 175 - - 175
Total transactions with owners - - 175 - - 175
At 30 September 2023 (unaudited) 71 6,444 768 (213) 886 7,956
ActiveOps plc
Notes forming part of the interim condensed unaudited financial statements for
the period six months ended 30 September 2023
1. General information
ActiveOps plc ('the Company') is a public company limited by shares,
incorporated, domiciled and registered in England and Wales. The registered
office and principal place of business is One Valpy, 20 Valpy Street, Reading,
Berkshire, RG1 1AR.
The Company, together with its subsidiary undertakings ('the Group') is
principally engaged in the provision of hosted operations management Software
as a Service ('SaaS') solutions to industry leading companies around the
world.
2. Accounting policies
a. Basis of preparation
The condensed consolidated unaudited interim financial statements ("interim
financial statements") for the period 1 April 2023 to 30 September 2023 are
unaudited. The group has chosen not to adopt IAS 34 "Interim Financial
Statements" in preparing the interim financial information. The condensed
consolidated interim financial statements incorporate unaudited comparative
figures for the interim period from 1 April 2022 to 30 September 2022 and the
audited financial year ended 31 March 2023.
The Interim financial statements for the six months ended 30 September 2023
have been prepared on the basis of the accounting policies expected to be
adopted for the year ended 31 March 2024. These are in accordance with the
accounting policies as set out in the Group's last annual consolidated
financial statements for the year ended 31 March 2023.
The Interim financial statements have been prepared under the historical cost
convention and on a going concern basis and in accordance with the
presentation, recognition and measurement criteria of UK-adopted International
Accounting Standards.
All figures presented are rounded to the nearest thousand, unless stated
otherwise.
b. Going Concern
The Directors believe that there are no material uncertainties that cast
significant doubt about the Group's ability to continue in operation and meet
its liabilities as they fall due for the foreseeable future, being a period of
at least 12 months from the date of approval of the interim financial
statements. During the period, the Group has retained a significant cash
balance. This ensures that the business remains financially robust, with
strong prospects for the future.
Whilst there can be no certainty due to the conditions across the world at
present, the Directors have reviewed cash flow forecasts for the business
covering a period of at least 12 months from the date of approval of the
financial statements, and together with the projected revenue and available
cash reserves, they are confident that sufficient funding is available to
support ongoing trading activity and investment plans for the business. The
interim financial statements have therefore been prepared on a going concern
basis.
3. Revenue
The Group derives all its revenue from the transfer of goods and services.
A disaggregated geographical split of revenue by operating segment is shown
below between Europe, the Middle East, India and Africa ('EMEIA'), North
America and Australia. All revenue streams are recognised over time.
SaaS T&I Total
Six months ended 30 September 2023 £000 £000 £000
EMEIA 6,456 814 7,270
North America 2,863 275 3,138
Australia 2,402 250 2,652
11,721 1,339 13,060
SaaS T&I Total
Six months ended 30 September 2022 £000 £000 £000
EMEIA 5,470 984 6,454
North America 3,013 21 3,034
Australia 2,455 348 2,803
10,938 1,353 12,291
4. Segmental analysis
The Group has two reporting segments, being SaaS and T&I. The Group
focuses its internal management reporting predominantly on revenue and cost of
sales. Total assets and liabilities are not provided to the Chief Operating
Decision-Maker (CODM) in the Group's internal management reporting by segment
and therefore a split has not been presented below. Information about
geographical revenue by segment is disclosed in note 3.
SaaS T&I Total
Six months ended 30 September 2023 £000 £000 £000
Revenue 11,721 1,339 13,060
Cost of sales (1,486) (609) (2,095)
10,235 730 10,965
SaaS T&I Total
Six months ended 30 September 2022 £000 £000 £000
Revenue 10,938 1,353 12,291
Cost of sales (1,732) (556) (2,288)
9,206 797 10,003
5. Earnings per share
Six months ended 30 September 2023 Six months ended 30 September 2022
Unaudited Unaudited
Loss on continuing activities (£000) (97) (710)
Weighted average number of shares in issue in the period 71,364,180 71,364,180
Basic and diluted loss per share (0.14p) (0.99p)
6. Trade and other receivables
At 30 September 2023 At 31 March 2023
£000 Unaudited £000 Audited
Trade receivables 3,206 5,507
Prepayments and accrued income 1,003 675
Other receivables 434 191
4,643 6,373
The Directors consider the carrying value of trade and other receivables to be
approximately equal to their fair value.
At 30 September 2023 At 31 March 2023
£000 Unaudited £000
Audited
Trade receivables from contracts with customers 3,262 5,563
Less loss allowance (56) (56)
3,206 5,507
Trade receivables are amounts due from customers for services performed in the
ordinary course of business. They are generally due for settlement within 30
days and are therefore all classified as current. Trade receivables are
recognised initially at the amount of consideration that is unconditional. The
Group holds the trade receivables with the objective of collecting the
contractual cash flows, and so it measures them subsequently at amortised cost
using the effective interest method.
7. Trade and other payables
At 30 September 2023 At 31 March 2023
£000 Unaudited £000
Audited
Trade payables 1 167
Other taxation and social security 156 1,360
Other payables 6 5
Accruals and deferred income 11,529 17,328
11,692 18,860
Trade payables are unsecured and are usually paid within 30 days of
recognition. The carrying amounts of trade and other payables are considered
to be the same as their fair values, due to their short-term nature.
8. Events after the reporting date
There have been no events that have occurred since the period end which
require disclosure.
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