REG - ActiveOps PLC - Interim Results
14/11/2024 07:00
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RNS Number : 1673M ActiveOps PLC 14 November 2024
14 November 2024
ActiveOps Plc
("ActiveOps", "the Company", "the Group")
Interim Results for the six months ended 30 September 2024
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 2024.
Financial Highlights:
Six months ended 30 September H1 FY25 H1 FY24 Change
Total Revenue £14.32m £13.06m +10%
Software & Subscription revenue £12.96m £11.72m +11%
Training & Implementation "T&I" revenue £1.36m £1.34m +1%
Annual recurring revenue "ARR"(1) £26.15m £23.73m +10%
Net Revenue Retention "NRR"(2) on an annualised basis 108% 104% +4ppts
Gross margin 84% 84% -
Adjusted EBITDA(3) £1.04m £0.79m +32%
Profit before tax £0.47m £0.10m +370%
Basic earnings/ (loss) per share 0.52p (0.14p) +471%
Net cash and cash investments(4) £13.44m £9.90m +36%
· ARR(1) growth of 10% (12% at constant currency)
· Adjusted EBITDA(3) up 32% to £1.04m (H1 FY24: £0.79m)
· Cash conversion(5) negative in the period, as is typical, 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 £13.44m cash and cash investments (H1
FY24: £9.90m)
Operational Highlights
· Three new customers secured (H1 FY24: two new customers), two with significant
expansion potential
· Continued expansion across existing customers, resulting in NRR(2) of 108%,
(110% constant currency) (H1 FY24: 104%)
· Strong performance in Canada and Africa, delivering ARR growth of 37% and 43%
respectively on a constant currency basis
· Addition of five experienced sales executives as planned, with further
investment planned in H2
Outlook
· While enterprise sales cycles remain elongated in some regions, trading in the
first few weeks of the second half has been encouraging, securing two new
customer engagements, including the first sale of ControliQ Series 4, both
with considerable expansion potential
· Focused investment in the global sales operation will continue in H2,
providing a strong foundation for future growth
· The Board anticipates delivering results for the year ending 31 March 2025 in
line with its current expectations
ActiveOps Executive Chair, Richard Jeffery, commented:
The first half of FY25 has seen ActiveOps deliver good revenue and profit
growth, trading in line with expectations for the full year. Importantly, we
continue to make positive progress across the business, enhancing our product
set and strengthening our sales team as planned. Looking ahead, we are
confident the investment into our sales team, and the growing AI capabilities
of our platform, provide us with a fantastic springboard for growth in FY26
and beyond."
Footnote to Financial highlights
The above non-GAAP measures are unaudited
1. Annual Recurring Revenue is defined as recurring SaaS revenues and new
contract wins, excluding lost contracts
2. Net Revenue Retention is defined as the change in recurring SaaS revenue
excluding new contract wins
3. Adjusted EBITDA is used by management to assess the trading performance of the
business. Defined as Operating profit before depreciation, amortisation and
share-based payment charges and includes translation reserve movements
4. Cash and cash investments are cash and cash equivalents plus cash investments
on the Balance Sheet at the period end
5. Cash conversion is defined as Cash generated from Operations in the
Consolidated Statement of Cash Flows as a percentage of adjusted EBITDA
For more information, please contact:
ActiveOps Via Alma
Richard Jeffery, Executive Chair www.activeops.com (http://www.activeops.com/)
Emma Salthouse, Chief Financial Officer
Investec Bank plc +44 (0)20 7597 5970
Corporate Broking & PLC Advisory
Patrick Robb / Nick Prowting
Alma Strategic Communications + 44(0) 203 405 0205
Caroline Forde / Will Ellis Hancock / Louisa El-Ahwal
About ActiveOps
ActiveOps is a Software as a Service business, dedicated to helping
organisations create more value from their service operations. ActiveOps'
Decision Intelligence software solutions are specifically designed to support
leaders with the vast number of decisions they make daily in the running their
operations. Our customers make better decisions and consume less time and
effort making them. The outcomes are significantly improved turnaround times
and double-digit improvements in productivity with backlogs of work materially
reduced. Customers also leverage the capacity created to invest in
transformation and development, and more efficiently utilise resources.
The Company's AI-powered SaaS solutions are underpinned by 15+ years of
operational data and its AOM methodology which is proven to enhance cross
departmental decision-making.
The Company has approximately 190 employees, serving a global base of
enterprise customers from offices in the UK, Ireland, USA, Canada, 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 Xchanging.
Executive CHair Statement
The first half of FY25 has seen ActiveOps deliver good revenue and profit
growth, trading in line with expectations for the full year. Importantly, we
continue to make positive progress across the business, enhancing our product
set and strengthening our sales team as planned, providing us with the skills
and capacity to accelerate our growth rate in future years.
The increasing ability of our products to blend Artificial Intelligence ("AI")
and Machine Learning ("ML") technologies with human intelligence, and
information drawn from other enterprise applications, is helping our customers
to make better decisions, faster and easier than ever. This is driving
expansion opportunities across our customer base, as reflected in the strong
ARR growth rates at constant currency in Canada and Africa this period, of 37%
and 43% respectively. This provides a clear indication of the growth that is
available when we are well established with our customers.
Our international land & expand sales strategy continues to deliver
results, including three new logo wins in the half, two with significant
expansion potential and several major contract expansions, including multiple
upsells of the recently launched ControliQ Series 3.
Following our investments in product and marketing, the focus is now on
expanding our sales teams to drive additional growth. With more customers than
ever before at our conferences in October, we are confident that our products'
position in the market has never been clearer and more relevant.
Delivering against our Financial KPIs
Our highly cash generative SaaS business model is a major strength of the
business, providing robust visibility of earnings, and the funds to invest in
resources to support further growth.
Overall Group revenues grew by 10%, (11% on a constant currency basis, "CC"),
to £14.32m (H1 FY24: £13.06m), including 11% growth in SaaS revenue to
£12.96m (H1 FY24: £11.72m). ARR increased 10% (12% on a CC basis) to
£26.15m (H1 FY24: £23.73m), and NRR increased to 108% (H1 FY24: 104%).
Supported by this solid revenue performance, the Group delivered adjusted
EBITDA growth to £1.04m (H1 FY24: £0.79m) and significantly increased PBT by
370% to £0.47m (H1 FY24: £0.10m). This strong profit performance provides us
with firepower to accelerate investment in Canada, alongside our ongoing sales
team investment, where we see further expansion opportunity.
ActiveOps remains well capitalised, with cash and cash investments at the
period end of £13.44m (H1 FY24: £9.90m), providing the capacity to reinvest
into the business and support organic growth.
Growth of our customer base: land & expand
Our target market is global and large. The Decision Intelligence market was
estimated to be worth more than $12bn in 2023, growing to greater than $36bn
in 2030 1 (#_ftn1) . Today we focus on a well-defined set of industries and
geographies, but with large-scale service operations present in all industry
sectors, the potential is huge. The surge in interest in AI, increased
regulation, challenging economic climate and continued uncertainty relating to
hybrid working are all market forces which are driving interest in our
capabilities.
While enterprise sales cycles remain elongated in some regions, with elections
and other macro factors continuing to slow down decision making processes, we
secured three new customers in the period, all in North America: a large US
healthcare insurance provider, and a Canadian bank, both with significant
expansion potential, and a small US bank.
Our performance in Canada, APAC and Africa has been particularly strong. In
Australia three further major banks have upgraded to transition to ControliQ
Series 3, meaning our four largest Australian customers have either now moved
to ControliQ Series 3 or are contracted to do so later this year. APAC ARR has
increased 10% in the period on a constant currency basis.
In Canada we continue to see good traction following the work we did last year
to create a French-Canadian version of our core offering, and the opening of
our office in Toronto. Canada has seen 37% ARR CC growth in the period, with a
major customer win coupled with healthy expansions across our existing base in
the country, driving NRR of 123% on a constant currency basis.
ARR CC growth in Africa is up 43%, driven by a significant expansion within
three significant customers driven by the upsell to Series 3.
Following the close of the period, we have been notified by an EMEIA customer
of the intention to reduce the use of the ControliQ platform in a single area
of their organisation. Although they remain a customer, and we will continue
to work with them to demonstrate the value derived from our software, this
will have a gross impact on exit ARR of approximately 5%. Such an event is
highly unusual, and we are focused on ensuring all customers remain fully
aware of the considerable return on investment they derive from our software.
Investing in our sales team
The applicability of our offerings across our target sectors is clear, and our
expansion performance within existing customers continues to underpin our
overall growth. We are now investing in our sales teams to specifically target
an increase in the rate of new customer wins. This process has begun and is
progressing well, with five new team members joining us towards the end of the
half in the UK, South Africa and North America, and further investment is
planned in Canada in the second half of the year. Revenue growth is expected
from this investment from H2 FY26.
Powering our customers' success with innovation
Service Operations leaders make thousands of decisions every day. Our Decision
Intelligence products, designed purely for the operations environment, help
these leaders and their teams make the right decision, quicker. This increases
efficiency and capacity, alleviating pinch points and improving employee
welfare. Through our 15 years' experience in the service operations industry,
and close customer relationships, we are well placed to ensure we build the
products which Service Operations teams need most and can derive the most
value from. Product development and enhancement remains a key cornerstone of
our growth strategy, and our product teams have been busy in the first half of
the year.
ControliQ
Following its launch in September 2023, ControliQ Series 3 is now live, with
multiple customers using the platform following successful upsells, and with
additional customers trialling its features. Our customers are now able to
take advantage of the latest in AI tools for the back-office, increasing
automation and releasing capacity, all with zero technical effort. These
technologies have the potential to transform back-offices, and I am proud that
our people and platforms are at the heart of making that happen.
On average, we have seen an ARR increase of 24% from those customers moving
onto Series 3, with the tiered licencing and pricing model we have introduced
helping customers make the most of the parts of our software platform they
want, while facilitating upselling opportunities.
We now look ahead to the release of ControliQ Series 4, which is on track to
launch in early 2025 and will provide a further four AI-powered features. We
were delighted to secure our first customer engagement for Series 4 post
period end with a global healthcare company. With further advanced AI and ML
capabilities embedded within our software, our customers will be better
equipped than ever before to execute their roles efficiently and effectively.
New features include:
· Executive Insights - provides key performance indicators that enable senior
leaders to drive teams' performance and demonstrate their impact on the wider
business.
· Smart Skills - an AI generated, always up to date catalogue of the technical
skills and workload within a team, helping customers to see potential skill
gaps based on predicted demand of work.
· Opi - our virtual coach that provides real time recommendations to operations
leaders, which will help them optimise performance by predicting when they may
need to intervene, and even prescribing the best action for them to take.
· Business Planning - this feature harnesses AI and ML to automatically generate
capacity forecasts and realistic scenarios for operations leaders, helping
them save time while planning further ahead.
CaseworkiQ
CaseworkiQ continues to perform well since its launch in June 2022. There are
now 17 customers using the platform with a healthy level of interest in the
product, as more organisations look to technology to help their teams
undertake some of the most complex and regulated processes.
The data captured by CaseworkiQ enables customers to see the effort deployed
in every step and stage of a process. This insight is used to direct process
improvement and automation activity, predict the impact of this and manage out
the benefits.
In a major enhancement, a Process Analytics feature, due to be released in H1
2025, will automatically produce process maps showing the flow of work through
a process and the volumes and effort associated with each path through a
process, which will further embed the products benefits into the end user
ecosystem.
Board Changes
Further to the announcement made on 25 July 2024, following many years of
outstanding services to the Company, Sean Finnan did not stand for re-election
as Chair at the Company's AGM on 26 September and I transitioned to the role
of Executive Chair. Hilary Wright, independent Non-Executive Director and
Chair of the Remuneration Committee, assumed the role of Senior Independent
Director, while Mike McLaren remains as an Independent Non-Executive Director
and Chair of the Audit Committee.
To ensure an appropriate balance of independent directors and increase the
Company's depth of US expertise, Bruce Lee was appointed to the Board from 1
September 2024. Bruce brings strong technical leadership expertise from his
career as a corporate CIO and deep familiarity with ActiveOps' target
customers in US financial services and healthcare. His previous roles included
senior leadership positions at the New York Stock Exchange, BNP Paribas, HSBC,
Fannie Mae and Centene Healthcare. Bruce is chair of the Nominations Committee
and, reflecting this expertise and experience, is also chairing a new Board
committee responsible for the Group proposition and technologies.
Current Trading and Outlook
The second half has begun well, with the signing of two new engagements, with
a multinational BPO and a well-known global healthcare company, which is also
the first customer to contract for ControliQ Series 4. Both engagements have
significant expansion potential given the size of the organisations. Whilst
the reduction within one customer will impact exit ARR at the year end, we see
a range of expansion opportunities elsewhere and the business continues to
trade in line with full year expectations.
Looking ahead, we are confident the investment into our sales team, and the
growing AI capabilities of our platform, provide us with a fantastic
springboard for growth in FY26 and beyond.
Richard Jeffery
Executive Chair
Chief Financial Officer's Report
Financial Review
I am pleased to report a strong first half for the Group, with 11% revenue
growth on a constant currency basis, delivering total revenue of £14.32m (H1
FY24 £13.06m). The Group delivered a sustainable profit before tax and
maintained a strong cash and cash investments position.
Revenue
ARR is a key performance metric for the Group. ActiveOps' ARR at 30 September
2024 totalled £26.15m (30 September 2023: £23.73m), representing
year-on-year growth of 10%. The successful launch of ControliQ Series 3 in
September 2023 has bolstered the ARR growth in the first half of the year with
upsell to multiple customers, compounded by new customer wins. This strong
upsell performance is anticipated to continue in the second half of the year,
during which a high proportion of renewals take place. On a constant currency
basis, the ARR growth exceeded 12%.
Total revenue for the Group at £14.32m (H1 FY24: £13.06m) is 10% ahead of
the same period last year, with recurring software and subscription revenues
increasing by 11% to £12.96m (H1 FY24: £11.72m) on a reported basis.
Training and Implementation ('T&I') revenue at £1.36m (H1 FY24: £1.34m)
was in-line with the prior year.
Margins and operating profit
Gross profit margins have remained in line with prior year at 84% (H1 FY24:
84%). Software and Subscription margins marginally increased to 88% (H1 FY24:
87%), due to prudent cost management.
Operating expenses (excluding share-based payments, depreciation and
amortisation) increased by 7% to £10.92m (H1 FY24: £10.17m). This is
primarily due to the investment in our global sales operation.
Adjusted EBITDA increased to £1.04m (H1 FY24: £0.79m), reflecting revenue
growth and good cost control.
Foreign Exchange
The Group has 52% (H1 FY24: 62%) of revenues invoiced in currencies other than
GBP, with the Group's cost base predominantly located in the same base
jurisdictions as revenues, providing a natural hedge to currency exchange
risk.
Product and Technology Expenditure
Total expenditure on product management, research and development in the first
half increased to £1.78m (H1 FY24: £1.66m). Capitalised labour of £0.47m
(H1 FY24 £0.54m) related to the development of new product features.
Depreciation & Amortisation
Depreciation & amortisation of £0.63m (H1 FY24: £0.52m) 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,
and the corporation tax charge in the accounts is foreign corporation tax.
Statutory Results
The Group reported a profit before tax for the period of £0.47m (H1 FY24:
£0.10m).
Earnings per Share
Basic Earnings per Share for continuing operations was a profit of 0.52p (H1
FY42: loss of 0.14p).
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
As is typical for the business, cash flow from operations in the first half of
the year was negative £4.32m (H1 FY24: (£5.35m)). 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 2024.
Balance Sheet
The Group has maintained a strong balance sheet position with cash and cash
investments of £13.44m (H1 FY24: £9.90m) and net assets of £9.29m (FY24:
£8.80m).
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 2024
Notes Six months ended 30 September 2024 Six months ended 30 September 2023
£000 £000
Unaudited Unaudited
Revenue 3 14,320 13,060
Cost of sales 4 (2,258) (2,095)
Gross profit 12,062 10,965
Administrative expense excluding share option charges, depreciation and (10,923) (10,173)
amortisation
Administrative expenses - share option charges (219) (175)
Administrative expenses - depreciation and amortisation (634) (521)
Total administrative expenses (11,776) (10,869)
Operating profit 286 96
Finance income 205 19
Finance costs (21) (11)
Profit before taxation 470 104
Taxation (100) (201)
Profit / (loss) for the period 370 (97)
Other comprehensive income
Items that may be subsequently reclassified to profit or loss:
Exchange differences on translating foreign operations (100) 11
Total comprehensive income/(loss) for the period attributable to the owners of 270 (86)
the parent company
Basic earnings/(loss) per share 5 0.52p (0.14p)
Diluted earnings/(loss) per share 5 0.49p (0.14p)
Unaudited consolidated condensed statement of financial position
Notes At 30 September 2024 At 31 March 2024 At 30 September 2023
£000 £000 £000
Unaudited Audited Unaudited
Non-current assets
Intangible assets 5,556 5,794 5,915
Property, plant and equipment 225 221 140
Right-of-use assets 251 301 351
Deferred tax assets 175 174 210
Total non-current assets 6,207 6,490 6,616
Current assets
Trade and other receivables 6 3,983 5,939 4,643
Corporation tax recoverable - - 16
Cash investments 5,067 6,253 -
Cash and cash equivalents 8,377 11,353 9,896
Total current assets 17,427 23,545 14,555
Total assets 23,634 30,035 21,171
Equity
Share capital 71 71 71
Share premium 6,048 6,048 6,048
Merger relief reserve 396 396 396
Share option reserve 603 384 768
Foreign exchange reserve (460) (360) (213)
Retained earnings 2,634 2,264 886
Total Equity 9,292 8,803 7,956
Non-current liabilities
Lease liabilities 174 239 303
Provisions 212 201 119
Deferred tax liabilities 565 691 802
Total non-current liabilities 951 1,131 1,224
Current liabilities
Trade and other payables 7 13,231 19,963 11,692
Lease liabilities 68 69 68
Corporation tax payable 92 69 231
Total current liabilities 13,391 20,101 11,991
Total equity and liabilities 23,634 30,035 21,171
Unaudited consolidated condensed statement of cash flows
Notes Six months ended 30 September 2024 Six months ended 30 September 2023
£000 £000
Unaudited Unaudited
Profit/(loss) after tax 370 (97)
Taxation 100 201
Finance income (205) (19)
Finance costs 21 11
Operating profit 286 96
Adjustments for:
Depreciation property, plant and equipment 58 59
Depreciation right-of-use asset 50 67
Amortisation of intangible assets 526 395
Share option charge 219 175
Change in trade and other receivables 6 1,956 1,730
Change in trade and other payables and provisions 7 (6,721) (7,151)
Cash used in operations (3,626) (4,629)
Interest paid (9) (11)
Taxation paid (208) (172)
Net cash used in operating activities (3,843) (4,812)
Investing activities
Purchase of property, plant and equipment (64) (39)
Proceeds from sale of property, plant and equipment 1 -
Capitalisation of development costs (472) (542)
Interest received 205 19
Net cash investments 1,186 -
Net cash generated from / (used in) investing activities 856 (562)
Financing activities
Repayment of capital element of lease liabilities (66) (91)
Interest paid in respect of leases (11) -
Net cash used in financing activities (77) (91)
Net change in cash and cash equivalents (3,064) (5,465)
Cash and cash equivalents at beginning of the period 11,353 15,377
Effect of foreign exchange on cash and cash equivalents 88 (16)
Cash and cash equivalents at end of the period 8,377 9,896
Unaudited consolidated condensed statement of changes in equity
Share capital Share premium Merger relief reserve(1) Share option reserve Foreign exchange reserve Retained Earnings Total
£000 £000 £000
£000 £000 £000
£000
At 31 March 2023 (audited) 71 6,048 396 593 (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 6,048 396 768 (213) 886 7,956
At 31 March 2024 (audited) 71 6,048 396 384 (360) 2,264 8,803
Profit for the period - - - - - 370 370
Exchange differences on translating foreign operations - - - - (100) - (100)
Total comprehensive income for the period - - - - (100) 370 270
Transactions with owners recorded directly in equity
Share based payment charge - - - 219 - - 219
Total transactions with owners - - - 219 - - 219
At 30 September 2024 (unaudited) 71 6,048 396 603 (460) 2,634 9,292
( )
(1) During the year ended 31 March 2024 management identified that merger
relief was available in relation to the acquisition of ActiveOps Pty Ltd on 1
April 2017. Further details of this can be found in the Annual Report and
Accounts for the year ended 31 March 2024.
Notes forming part of the interim condensed unaudited financial statements for
the period six months ended 30 September 2024
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 2024 to 30 September 2024 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 2023 to 30 September 2023 and the
audited financial year ended 31 March 2024.
The Interim financial statements for the six months ended 30 September 2024
have been prepared on the basis of the accounting policies expected to be
adopted for the year ended 31 March 2025. 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 2024.
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.
The comparative figures for the year ended 31 March 2024 do not constitute the
Group's statutory accounts for 2024 as defined in Section 434(3) of the
Companies Act 2006. Statutory accounts for 2024 have been delivered to the
Registrar of Companies. The auditor's report on those accounts was
unqualified, drew attention to a prior year adjustment by way of emphasis but
did not contain statements under Sections 498(2) or (3) of the Companies Act
2006.
These Condensed Consolidated Interim Financial Statements do not include all
the information required for full Annual Financial Statements and should be
read in conjunction with the Annual Financial Statements of the Group as at
and for the year ended 31 March 2024.
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.
c. New Policies and Standards
At the date of authorisation of these Condensed Consolidated Interim Financial
Statements, several new standards and amendments to existing standards have
been issued, some of which are effective. None of these standards and
amendments have a material impact on the Group.
The preparation of the Condensed Consolidated Interim Financial Statements
requires management to make judgments, estimates and assumptions that affect
the application of accounting policies and the reported amounts of assets and
liabilities, income and expense. The resulting accounting estimates will, by
definition, seldom equal the related actual results. The Group's latest Annual
Financial Statements for the year ended 31 March 2024, which are available via
ActiveOps plc's website, set out the key sources of estimation uncertainty and
the critical judgements that were made in preparing those Financial
Statements.
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.
Six months ended 30 September 2024 SaaS T&I Total
£000 £000 £000
EMEIA 7,251 670 7,921
North America 3,217 502 3,719
Australia 2,493 187 2,680
12,961 1,359 14,320
Six months ended 30 September 2023 SaaS T&I Total
£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
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.
Six months ended 30 September 2024 SaaS T&I Total
£000 £000 £000
Revenue 12,961 1,359 14,320
Cost of sales (1,616) (642) (2,258)
11,345 717 12,062
Six months ended 30 September 2023 SaaS T&I Total
£000 £000 £000
Revenue 11,721 1,339 13,060
Cost of sales (1,486) (609) (2,095)
10,235 730 10,965
5. Earnings per share
Six months ended 30 September 2024 Six months ended 30 September 2023
Profit/(loss) for the period (£000) 370 (97)
Weighted average number of shares in issue in the period 71,364,180 71,364,180
Basic earnings/(loss) per share 0.52p (0.14p)
Diluted earnings/(loss) per share 0.49p (0.14p)
There are 3,808,686share options outstanding at the end of the period.
Earnings per share is calculated as basic earnings per share from continuing
operations.
6. Trade and other receivables
At 30 September 2024 At 31 March 2024 At 30 September 2023
£000 £000 £000
Unaudited Audited Unaudited
Trade receivables 2,035 4,363 3,206
Prepayments and accrued income 1,638 1,398 1,003
Other receivables 310 178 434
3,983 5,939 4,643
The Directors consider the carrying value of trade and other receivables to be
approximately equal to their fair value.
At 30 September 2024 At 31 March 2024 At 30 September 2023
£000 £000 £000
Unaudited Audited Unaudited
Trade receivables from contracts with customers 2,056 4,384 3,262
Less loss allowance (21) (21) (56)
2,035 4,363 3,206
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 2024 At 31 March 2024 At 30 September 2023
£000 £000 £000
Unaudited Audited Unaudited
Trade payables 65 527 1
Other taxation and social security 703 1,583 156
Other payables 2 6 6
Accruals and deferred income 12,461 17,847 11,529
13,231 19,963 11,692
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.
1 (#_ftnref1) Grand View Research, Decision Intelligence Market Size and
Share Report, 2023-2030
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