REG - Actual Experience - Interim Results for six months ended 31 March 2023
12/06/2023 07:00
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RNS Number : 3251C Actual Experience PLC 12 June 2023
12 June 2023
Actual Experience plc
(the "Company" or "Actual Experience" or "Actual")
UNAUDITED CONSOLIDATED INTERIM RESULTS
for the six months ended 31 March 2023
Company turnaround substantially completed, with a clear focus on sales
execution
Actual Experience plc (AIM: ACT), the Digital Workplace Management Platform
(DWMP) company, announces its unaudited consolidated interim results for the
six months ended 31 March 2023.
Financial Highlights
· Revenue of £0.23m (H1 FY22: £0.82m)
· Gross loss of £0.07m (H1 FY22: £0.35m)
· Operating loss of £2.54m (H1 FY22: loss of £2.84m)
· Loss per share of 1.16p (H1 FY22: loss per share of 4.97p)
· Cash and cash equivalents at 31 March 2023 of £3.10m (30
September 2022: £2.87m)
Operational Highlights
· Successful early commercial release of the new Digital Workplace
Management Platform (DWMP) in October with Defra, leading to the first sale of
the Company's new product offering less than 6 months after launching.
· Significant automation of the delivery process for DWMP content,
significantly reducing the load on manual resources and facilitating
operational leverage.
· Sales pipeline increasing due to a combination of reinvigorated
partner relations and the bolstering of the sales team.
· Several significant pipeline opportunities progressed to advanced
stages in the funnel during the period.
· Further strengthening of the Board with the addition of two
highly experienced Non-Executive Directors.
· Recruitment of an experienced CEO after the period end, marking
the beginning of the next phase of the Company's growth.
Current trading and outlook
· Market demand is reflected in the increasing volume of interest
in Digital Workplace Experience (DEX) as shown by commentary from Gartner and
Forrester. Organisations will prioritise investment in technologies that
optimise their digital infrastructure for the new era of hybrid working, often
termed 'the new ways of working'. The Company's board believes that it is in a
strong position to capitalise on this significant market opportunity.
· Feedback from partners and enterprises for our recently launched
DWMP continues to be very positive, and we will seek to maintain our
technology leadership by developing a rich roadmap of features and
capabilities.
· With the recruitment of an experienced CEO, the turn-around phase
is largely complete and resources are increasingly focused on optimising sales
execution to deliver strong revenue growth.
· Immediate focus remains on generating orders from our more
advanced sales opportunities. In addition, sales and marketing outreach
campaigns are delivering increased numbers of prospects into our sales
pipeline and we will seek to ensure efficient progression through the sales
stages.
· Our first DEX customer, Defra, remains an important relationship
for Actual, and we will seek to expand the size and scope of this deployment
while also working to engage with other central government departments.
· We will continue to tightly manage operating expenses and seek to
derive further economies while investing in sales and marketing activities.
Kirsten English, Chair of Actual Experience plc, said: "As detailed in the
2022 Annual Report, Actual Experience has implemented fundamental and
extensive changes to the business in the last 12 months. Since the beginning
of the current financial year, the Company has completed the goals that were
set by the Board for this turnaround phase, and the focus will now move to
execution and growth with predictable revenue and strong customer fulfilment
at the top of the agenda. With the new CEO, fresh ideas and a proven track
record of execution will open the next chapter for Actual Experience."
Iain McCready, CEO of Actual Experience plc, said: "I'm delighted to be
joining Actual at this important time. The measures taken by the Board and
Leadership team over the last year have positioned the Company to leverage its
excellent technology to establish a leading position in the rapidly developing
DEX technology market sector. My focus will be to translate this potential
into strong revenue growth through effective sales and marketing execution."
Enquiries:
Actual Experience plc Tel: +44 (0)207 129 1474
Iain McCready, CEO
Steve Bennetts, CFO
Singer Capital Markets Advisory LLP Tel: +44 (0)207 496 3000
Shaun Dobson
James Fischer
Turner Pope Investments (TPI) Ltd Tel: +44 (0)203 657 0050
James Pope
Andy Thacker
Flagstaff Strategic and Investor Communications Tel: +44 (0)207 129 1474
Tim Thompson actual@flagstaffcomms.com
Mark Edwards
Andrea Seymour
Anna Probert
About Actual Experience
Actual Experience's goal is to make the digital world work for everyone,
everywhere, all of the time. As the working world evolves post-pandemic, the
global shift to a flexible hybrid model has brought with it a significant
challenge; how do businesses create an environment that gives their people
what they need to thrive, whilst protecting the commercial efficiency of the
business and driving growth at the same time?
For further information please visit www.actual-experience.com
(http://www.actual-experience.com)
Market
As the emerging technology category of Digital Employee Experience (DEX)
continues to gain rapid momentum, analysts are increasingly emphasising its
importance and commenting that this will become a major area of enterprise
focus and investment in the coming years.
The market definition and scope of what DEX entails is still in its infancy,
with an element of confusion arising from multiple technology suppliers
promoting differing visions, each aligned to their individual capabilities.
With a standardised approach yet to be defined within the market, Actual's
DWMP offering is well placed to provide a practical starting point for
enterprise DEX transformations. The Company's proprietary HX Score is unique
in its capability to provide a reliable baseline of the overall employee
experience of the digital workplace as well as delivering a prioritised list
of improvement projects, ranked by business impact and enterprise value
creation. The Company's technology is quick to deploy and is partner agnostic,
meaning it forms an ideal foundation to any wider DEX transformation
programme.
Product development
At the beginning of the period, the Company launched an early release of its
newly built DWMP. During a six-month pilot, the team worked closely with the
customer, Defra, to understand their use of the insights and data, making
iterative improvements month-on-month. The DWMP showed quantified before and
after productivity savings due to improvements made by the customer. At the
end of the pilot, the Company was delighted to announce the first sale of the
new platform. The Actual Experience team were praised for their deep knowledge
of the complex area of Digital Experience Management and the usefulness of the
DWMP insights, which allow firms to navigate successfully through
transformational change over the total enterprise.
Following the early commercial release, the CPO set up a new cross-functional
process encouraging the sales and customer facing teams to connect openly with
the R&D and product functions within the business. The Company remains
committed to building and improving the DWMP based on tested market problems
to ensure the commercial viability of the platform.
After the period end, the next version of the product was released, with
extensive improvements and new features including a new Equality Grade metric
(which models how even the distribution of digital wellness is across an
organisation) to better support business leaders with DE&I initiatives.
In addition to customer-facing improvements, the Company also made substantial
progress in automating the customer insights creation process, reducing the
amount of manual resource needed to service clients on a continuous basis.
Several new development opportunities have been identified to increase the
Company's product portfolio, including a lighter version of the platform with
a number of use cases and a regulatory based tool to track the impact of
hybrid working patterns on scope 3 carbon emissions.
Sales & Marketing
During the period, Actual continued to apply the lessons learned from early
engagements with prospective customers and further refined its sales focus and
approach, both in terms of partner projects and direct sales efforts. This has
led to positive sales pipeline development, with increased numbers of active
prospects and also good momentum through the various sales stages. This
progress has been further supported by greater enterprise awareness of, and
focus on, the need for transformation of their digital infrastructure to
ensure efficient business processes in the more complex, hybrid working
environment.
As noted in the Company's Annual Report, sales cycles remain lengthy, and
efforts to reduce this have been hampered by the challenging general business
environment and, specifically, the weak macroeconomic conditions.
Notwithstanding this, several of our sales engagements are now progressing to
the point where customer decisions will be made, and we hope to be able to
announce further customer orders in the near future.
Over the period, the Company has formed a strong market positioning based on
learnings from the sales cycles and the commentary on the emergent DEX
category. A key priority moving forward will be to re-establish a marketing
function within the business to further drive sales activities.
Strategy
As a small company with market-leading technology, we will continue to
leverage our existing strong relationships with Verizon and Vodafone while
putting in place further sales and technology partnerships with leading
technology companies. In this way, we are planning to achieve significant
market penetration by accessing our partners' large global enterprise
customers.
At the same time, our direct sales team will continue to engage directly with
prospective customers to ensure we continue to understand evolving market
requirements and trends.
Typically, new enterprise sales engagements will commence with a subset of the
total addressable opportunity in each account, such as employees in a region,
country, or division. Over time, we expect that the initial engagement will
expand to address the whole digital estate. This is the approach adopted with
Defra, and we term this a 'land and expand' strategy.
As well as growing our customer base in this way, a further driver of top-line
growth is expected to arise from new product expansion initiatives that are
planned in our development roadmap. An example of this is the opportunity to
develop further our work that leverages our existing technology to estimate
the carbon impact (scope 3 emissions) of commuting and business travel
dynamics across an organisation.
This product development road map is aimed at ensuring we maintain our
technology leadership in the DEX sector. In addition, we will continue to
enhance the scalability of our service clouds, driving down per-seat costs and
ensuring that we can handle the demands of the world's largest enterprises.
Board Changes
The Board has been significantly strengthened in the period by the
appointment, in October 2022, of Harmesh Suniara and Barry Hoffman, in
February 2023. Harmesh and Barry bring to the board extensive experience in
capital markets and people management respectively. After the period end, in
June 2023, we welcomed Iain McCready to the board as CEO and Executive
Director.
After almost ten years of service, Stephen Davidson stepped down from the
board in March 2023 and his contribution to the development of the Company is
appreciated.
Outlook
With the recent appointment of a new CEO, the turnaround of the Company is now
largely complete. Management and the board are now keenly focused on taking
the business to the next stage of growth and achieving its strategic
objectives.
Since launching the new platform at the start of the current financial year,
the Company continues to receive consistent and positive feedback from both
commercial prospects and partners alike, as demonstrated by a growing sales
pipeline and reinvigorated relationships with our partners. In late May 2023,
after the period end, the Company completed development on the next version of
the platform, enhancing the offering based on market feedback. This resulted
in significant improvement in both the capability and usefulness of the data.
Furthermore, several promising additional value creation opportunities have
been identified and the resulting rich product development roadmap will lead
to value-enhancing adjacent features and capabilities.
The Digital Employee Experience (DEX) category is emergent and there remains a
general lack of clarity for business leaders on how to deliver effective
digital workplaces. Actual's platform is outcome-oriented, which means it is
perfectly placed within the market to guide customers through these complex,
enterprise-wide transformation projects.
This requirement is clearly a market problem which the DWMP can address, as
shown in current RFIs and RFPs that the Company has been invited to
participate in. Working closely with leading analysts as well as investing in
marketing and brand building will be key to the growth of the business and
maintaining the Company's technology leadership position. Actual's ability to
support multiple business leaders by quantifying the ROI of improvements to
productivity, reportable ESG efforts and employee wellbeing remains a unique
capability in the market.
The Company has progressed with its sales strategy and execution and has
achieved a first sale for the new DWMP within 6 months of launch. There are
several advanced sales engagements in the pipeline that are expected to lead
to outcomes in the coming months. It is also noted that due to the current
macroeconomic climate SaaS sales cycles are lengthening; however, the Company
has put significant focus on communicating the productivity element of the
insights which can estimate the operational dollar recovery of identified
projects, thus adding critical value for potential customers as cost
optimisation efforts become prevalent across the market.
Actual Experience has delivered the milestones set out a year ago. There is a
new team, a new SaaS product and a first, contracted client using that
product. In the interim, the Company has seen the appetite for Digital
Workplace Experience tools increasing in the market and are uniquely placed to
take advantage of this trend. The new CEO has a track record of taking
companies and instilling execution and delivery and this is now the strategic
focus. There is a clean slate to build upon and the path ahead is clear.
FINANCIAL REVIEW
Consolidated Income Statement
Total revenue for the six months to 31 March 2023 was £225,271, a decrease on
the prior year of 73% (H1 FY22: £824,706). This decrease reflects the
previously announced cancellation of longstanding contracts that relied on our
legacy product offering, partly offset by new DWMP revenues. The Company
maintained its focus on developing a direct sales capability during the
period, while continuing to work with its partners on indirect sales
opportunities. Revenues from Channel Partners in the period account for 100%
of sales (H1 FY22: 96.4%).
A gross loss of £66,088 was made in the period, compared to the gross profit
of £354,386 in the corresponding period in 2022. This decrease in gross
margin reflects the impact of fixed support costs during a lower revenue
period and investment made in cloud infrastructure to support new DWMP revenue
opportunities.
Administrative costs amounted to £2,470,384, compared to £3,194,804 in the
six months to 31 March 2022. This significant expense reduction reflects
previously announced cost reduction measures taken towards the end of FY22
which have materially reduced headcount and the cost base in the current
fiscal year.
The functional cost breakdown is as follows:
Six months ended Six months ended Year
31 March 31 March ended
2023 2022 30 September 2022
£ £ £
Sales and marketing 696,662 971,671 1,302,291
Research and development 699,615 1,000,714 1,735,384
Operational support 533,992 580,263 1,317,241
Finance and administration 557,837 634,331 1,468,617
Foreign exchange (profits)/losses (17,722) 7,825 (1,017)
Total 2,470,384 3,194,804 5,822,516
It is anticipated that administrative costs will be slightly higher in the in
the second half of the year, due primarily to a modest increase in sales
headcount.
As disclosed in the notes to the Company's 2022 Financial Statements, and in
accordance with the requirements of IAS 38, qualifying development expenditure
is capitalised and amortised over the estimated useful life of the developed
assets. Total expenditure on research and development in the six months to 31
March 2023, prior to IAS 38 adjustments, was £779,760 (H1 FY22: £976,956).
A summary of the Group's results is set out below:
Six months Six months ended Year
ended 31 March ended
31 March 2022 30 September 2022
2023
£ £ £
Revenue 225,271 824,706 1,182,956
Gross (loss)/profit (66,088) 354,386 338,052
Operating loss (2,536,472) (2,840,418) (5,484,464)
Loss for the period/year (2,396,707) (2,849,540) (5,274,002)
Balance sheet
The Group has a debt-free balance sheet. Cash and cash equivalents increased
during the period, from £2,871,344 at 30 September 2022 to £3,097,389 at 31
March 2023, in line with expectations. This increase arose as a result of net
proceeds of £2,893,842 received from the October 2022 funding round, offset
by operating losses arising in the period.
Free cash flow for the period was £(2,660,226) (H1 FY22: £(2,796,982)). This
slight improvement reflects the lower operating loss; as noted above, this
primarily arose from a reduction in operating expenses. Free cash flow is
defined as net cash flows used in operating activities, plus development of
intangible assets, plus purchase of property, plant and equipment.
Trade and other receivables of £327,551 at 31 March 2023 (31 March 2022:
£393,161) comprise trade debtors of £11,364, prepayments of £196,483 and
other debtors of £119,704.
Cash flow statement
The movement in cash and cash equivalents during the period was:
Six months Six months ended Year
ended 31 March ended
31 March 2022 30 September 2022
2023
£ £ £
Net cash used in operating activities (2,307,987) (2,375,900) (4,500,771)
Net cash used in investing activities (322,657) (418,108) (766,871)
Net cash generated from/ (used in) financing activities 2,893,842 (50,007) (108,863)
Effect of exchange rate fluctuations (37,153) 1,268 31,651
Movement during the period/year 226,045 (2,842,747) (5,344,854)
Going concern
As described in Note 2, Basis of Preparation, the amounts and timing of future
revenues remain uncertain. If the Group is unable to secure an appropriate
combination of new revenue contracts, cost reductions, and/or further funding,
then it may not have sufficient resources to meet its liquidity requirements
for the foreseeable future. Accordingly, material uncertainty exists which may
cast significant doubt about its ability to continue as a going concern.
Actual Experience plc
Consolidated income statement and statement of comprehensive income
For the six months ended 31 March 2023
Unaudited Unaudited Audited
six months six months Year
ended ended ended
31 March 31 March 30 September
2023 2022 2022
£ £ £
Revenue 225,271 824,706 1,182,956
Cost of sales (291,359) (470,320) (844,904)
Gross (loss)/profit (66,088) 354,386 338,052
Administrative expenses (2,470,384) (3,194,804) (5,822,516)
Operating loss (2,536,472) (2,840,418) (5,484,464)
Finance income 29,618 2,974 11,408
Finance expense (13,248) (12,096) (23,391)
Finance expense - net 16,370 (9,122) (11,983)
Loss before tax (2,520,102) (2,849,540) (5,496,447)
Tax 123,395 - 222,445
Loss for the period/year (2,396,707) (2,849,540) (5,274,002)
Other comprehensive income:
Items that are or may be reclassified to profit or loss:
Foreign currency difference on translation of overseas operations (37,255) 5,521 31,945
Total comprehensive loss for the period/year (2,433,962) (2,844,019) (5,242,057)
Loss per ordinary share
Basic and diluted (1.16)p (4.97)p (9.19)p
Actual Experience plc
Consolidated statement of financial position
As at 31 March 2023
Unaudited at Unaudited at Audited at
31 March 31 March 30 September
2023 2022 2022
£ £ £
Non-current assets
Property, plant and equipment 38,058 47,634 35,249
Right-of-use assets 444,225 614,918 559,022
Intangible assets 1,065,642 873,441 968,780
Total non-current assets 1,547,925 1,535,993 1,563,051
Current assets
Trade and other receivables 327,551 393,161 281,866
Income tax receivable 114,864 44,103 220,117
Cash and cash equivalents 3,097,389 5,373,451 2,871,344
Total current assets 3,539,804 5,810,715 3,373,327
Total assets 5,087,729 7,346,708 4,936,378
Non-current liabilities
Deferred tax (9,345) (8,826) (6,494)
Lease liabilities (442,075) (545,691) (485,622)
Total non-current liabilities (451,420) (554,517) (492,116)
Current liabilities
Trade and other payables (539,870) (700,957) (842,366)
Lease liabilities (110,543) (117,224) (119,273)
Total current liabilities (650,413) (818,181) (961,639)
Total liabilities (1,101,833) (1,372,698) (1,453,755)
Net assets 3,985,896 5,974,010 3,482,623
Equity
Share capital 431,552 114,681 115,370
Share premium 46,819,050 44,231,620 44,241,390
Accumulated losses (43,264,706) (38,372,291) (40,874,137)
Total equity 3,985,896 5,974,010 3,482,623
Actual Experience plc
Consolidated statement of changes in equity
For the six months ended 31 March 2023
Share Share Accumulated Total
capital premium losses equity
£ £ £ £
Unaudited
As at 30 September 2021 114,538 44,212,455 (35,491,057) 8,835,936
Loss for the period - - (2,849,540) (2,849,540)
Other comprehensive income for the period - - 5,521 5,521
Total comprehensive loss for the period - - (2,844,019) (2,844,019)
Issue of shares 143 19,165 - 19,308
Share-based payment credit - - (37,215) (37,215)
As at 31 March 2022 114,681 44,231,620 (38,372,291) 5,974,010
Audited
As at 30 September 2021 114,538 44,212,455 (35,491,057) 8,835,936
Loss for the year - - (5,274,002) (5,274,002)
Other comprehensive income for the year - - 31,945 31,945
Total comprehensive loss for the year - - (5,242,057) (5,242,057)
Issue of shares 832 28,935 - 29,767
Share-based payment expense - - (141,023) (141,023)
At 30 September 2022 115,370 44,241,390 (40,874,137) 3,482,623
Unaudited
As at 1 October 2022 115,370 44,241,390 (40,874,137) 3,482,623
Loss for the period - - (2,396,707) (2,396,707)
Other comprehensive income for the period - - (37,255) (37,255)
Total comprehensive loss for the period - - (2,433,962) (2,433,962)
Issue of shares 316,182 2,577,660 - 2,893,842
Share-based payment charge - - 43,393 43,393
At 31 March 2023 431,552 46,819,050 (43,264,706) 3,985,896
Actual Experience plc
Consolidated statement of cash flows
for the six months ended 31 March 2023
Unaudited Unaudited six months ended Audited
Six months 31 March year
ended 2022 ended September
31 March 2022
2023
£ £ £
Cash flows from operating activities
Loss before tax (2,520,102) (2,849,540) (5,496,447)
Adjustment for non-cash items:
Depreciation of property, plant and equipment 11,325 14,193 27,260
Depreciation of right-of-use assets 49,358 55,896 111,792
Amortisation of intangible assets 241,141 431,911 689,875
Loss/(profit) on disposal of property, plant and equipment (50) 17 3,485
Non-cash employee benefit expense - Share-based payments
43,393 (37,215) (141,023)
Finance income (29,618) (2,974) (11,408)
Finance expense 13,248 12,096 23,391
Operating cash outflow before changes in working capital (2,191,305) (2,375,616) (4,793,075)
Movement in trade and other receivables (45,685) 198,996 302,953
Movement in trade and other payables (302,496) (199,205) (54,673)
Cash outflow from operations (2,539,486) (2,375,825) (4,544,795)
Income tax received 231,499 (75) 44,024
Net cash flows used in operating activities (2,307,987) (2,375,900) (4,500,771)
Cash flow from investing activities
Development of intangible assets (338,003) (408,153) (761,456)
Purchase of property, plant and equipment (14,236) (12,929) (16,823)
Proceeds from sale of property, plant and equipment 50 - -
Finance income 29,618 2,974 11,408
Finance expense (86) - -
Net cash outflow from investing activities (322,657) (418,108) (766,871)
Cash flow from financing activities
Proceeds from issue of share capital, net of costs 2,893,842 19,308 29,767
Principal element of lease payments - (57,219) (115,239)
Interest element of lease payments - (12,096) (23,391)
Inflow/outflow to Employee Benefit Trust - -
Net cash (outflow)/inflow from financing activities 2,893,842 (50,007) (108,863)
(Decrease)/increase in cash and cash equivalents 263,198 (2,844,015) (5,376,505)
Effect of exchange rate fluctuations on cash held (37,153) 1,268 31,651
Cash and cash equivalents at start of year / period 2,871,344 8,216,198 8,216,198
Cash and cash equivalents at end of year / period 3,097,389 5,373,451 2,871,344
Notes to the consolidated interim report
For the six months ended 31 March 2023
1 General information
Actual Experience plc (the "Company") is a public limited company domiciled in
the UK and incorporated in England and Wales (registered number 06838738) and
its registered office is Quay House, The Ambury, Bath, BA1 1UA.
The principal activity of Actual Experience plc ("the Company") and its
subsidiary company Actual Experience Inc (together "Actual Experience" or "the
Group") is the provision of digital experience quality analytics services and
associated consultancy services.
The interim condensed consolidated financial information approved for issue on
9 June 2023.
2 Basis of preparation
This unaudited interim condensed consolidated financial information has been
prepared under the historical cost convention, and in accordance with
International Accounting Standards and AIM Rules for Companies. The interim
condensed consolidated financial information has been prepared on a going
concern basis and is presented in Sterling to the nearest £1.
The interim financial information does not include all of the notes of the
type normally included in an annual financial report. Accordingly, this report
is to be read in conjunction with the annual report for the year ended 30
September 2022, which has been prepared in accordance with "International
Accounting Standards in conformity with the requirements of the Companies Act
2006", and any public announcements made by Actual Experience during the
interim reporting period. The accounting policies adopted are consistent with
those of the previous financial year and corresponding interim reporting
period.
The interim condensed consolidated financial information for the six months
ended 31 March 2023 and for the six months ended 31 March 2022 do not
constitute statutory accounts as defined in Section 434 of the Companies Act
2006 and are unaudited. The financial information for the six months ended 31
March 2023 presents financial information for the consolidated group,
including the financial results of the Company's wholly owned US subsidiary,
Actual Experience Inc. Comparative figures in the Interim Report for the year
ending 30 September 2022 have been taken from the Group's audited financial
statements. Those accounts have been reported on by the Company's auditors and
delivered to the Registrar of Companies. The report of the auditors was (i)
unqualified, although included an emphasis of matter in respect of material
uncertainty around going concern and (ii) did not contain a statement under
section 498(2) or (3) of the Companies Act 2006.
Going concern
As in previous years, the Group and Company have continued to utilise their
cash resources to fund losses while the sales pipeline is being further
developed. The cash balance as at 31 March 2023 was £3.10m. Based on the
Group's latest "base case" assessment, and in the absence of cost reductions
or significant commercial progress, the Group and Company is not forecast to
maintain positive cash reserves throughout the going concern period and is
forecast to run out of cash by December 2023. In addition, the Directors have
also prepared a severe, but plausible downside scenario, based on
significantly more pessimistic sales forecasts, with corresponding reductions
in controllable costs. In this scenario, the Group and Company is forecast to
run out of cash by November 2023. The amounts and timing of future revenues
in the Group's budgets remain uncertain. The Group is experiencing an
encouraging level of interest in its services and it is in active discussions
with its Channel Partners and several large potential end-customers. The
discussions are well progressed and are expected to result in additional
revenue for the Group. However, at present a substantial proportion of the
forecast revenue remains uncommitted and if the Group and Company are unable
to secure an appropriate combination of new revenue contracts, cost
reductions, and/or further funding, then the Group and Company may not have
sufficient resources to meet their liquidity requirements over the foreseeable
future. Accordingly, a material uncertainty exists which may cast significant
doubt about the Group's and the Company's ability to continue as going
concerns. Nevertheless, after making appropriate enquiries and considering the
assumptions and uncertainties described above, the Directors have a reasonable
expectation that the Group and Company will have adequate resources to
continue operating at least until 30 June 2024. Therefore, the Directors
continue to adopt the going concern basis in preparing the interim condensed
consolidated financial information and does not include any of the adjustments
that would be required if the Group or Company were unable to continue as
going concerns.
3 Segmental reporting
The Directors consider that there is one identifiable business segment that is
engaged in providing individual products or services or a group of related
products and services that comprise the core business.
The information reported to the Chief Executive Officer, who is considered to
be the Chief Operating Decision Maker ("CODM"), for the purposes of resource
allocation and assessment of performance is based wholly on the overall
activities of the Group. Due to the current size and activities of the Group
there is a high degree of centralisation of activities. The Directors
therefore consider that there is one operating, and hence one reportable,
segment for the purposes of presenting information under IFRS 8; that of
"Digital experience quality analytics services and associated consultancy
services". There are no differences between the segment results and the
condensed statement of comprehensive income. The assets and liabilities
information presented to the CODM is consistent with the Statement of
Financial Position. All of the Group's assets and operations are located in
the UK and the USA.
4 Tax
Tax on loss on ordinary activities
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2023 2022 2022
£ £ £
Current tax:
UK Corporation tax on losses of the period/year (114,864) - (220,117)
Overseas taxes (11,382) 75 79
Deferred tax:
Origination and reversal of timing differences 2,851 (75) (2,407)
Total tax credit (123,395) - (222,445)
5 Loss per share
The calculation of basic and diluted loss per share for the six months to 31
March 2023 was based upon the loss attributable to ordinary shareholders of
£2,396,707 (six months to 31 March 2022: £2,849,540, year ended 30 September
2022: £5,274,002) and a weighted average number of ordinary shares in issue
of 207,122,200 (six months to 31 March 2022: 57,294,806, year ended 30
September 2022: 57,400,891), calculated as follows:
Weighted average number of ordinary shares
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2023 2022 2022
Number Number Number
Issued ordinary shares at start of period/year 57,685,018 57,269,321 57,269,321
Effect of shares issued 149,437,182 25,485 131,570
Weighted average number of shares at end of period/year 207,122,200 57,294,806 57,400,891
Due to the losses incurred there is no dilutive effect from the issue of share
options.
6 Related party transactions
There were no transactions entered into with related parties during the
period. No amounts were outstanding to or from the related parties at 31 March
2023.
During each financial period, the Company entered into numerous transactions
with its subsidiary company, which net off on consolidation; these have not
been shown above.
7. Availability of Interim Report
Electronic copies of this Interim Report will be available on the Company's
website at www.actual-experience.com.
Forward-looking statements
This announcement may include certain forward-looking statements, beliefs or
opinions, including statements with respect to the Group's business, financial
condition and results of operations. These forward-looking statements can be
identified by the use of forward-looking terminology, including the terms
"believes", "estimates", "plans", "anticipates", "targets", "aims",
"continues", "expects", "intends", "hopes", "may", "will", "would", "could" or
"should" or, in each case, their negative or other various or comparable
terminology. These statements are made by the Directors in good faith based
on the information available to them at the date of this announcement and
reflect the Directors' beliefs and expectations. By their nature these
statements involve risk and uncertainty because they relate to events and
depend on circumstances that may or may not occur in the future. A number of
factors could cause actual results and developments to differ materially from
those expressed or implied by the forward-looking statements, including,
without limitation, developments in the global economy, changes in government
policies, spending and procurement methodologies, and failure in health,
safety or environmental policies. No representation or warranty is made that
any of these statements or forecasts will come to pass or that any forecast
results will be achieved. Forward-looking statements speak only as at the date
of this announcement and the Company and its advisers expressly disclaim any
obligations or undertaking to release any update of, or revisions to, any
forward-looking statements in this announcement. No statement in the
announcement is intended to be, or intended to be construed as, a profit
forecast or to be interpreted to mean that earnings per share for the current
or future financial years will necessarily match or exceed the historical
earnings. As a result, you are cautioned not to place any undue reliance on
such forward-looking statements.
The Directors of Actual Experience plc and their functions are listed below.
Further information for Shareholders
Company number: 06838738
Registered office: Quay House
The Ambury
Bath
BA1 1UA
Directors: Kirsten English (Non-Executive Chair)
Iain McCready (Chief Executive Officer)
Steve Bennetts (Chief Financial Officer)
Harmesh Suniara (Non-Executive Director)
Richard Steele (Non-Executive Director)
Barry Hoffman (Non-Executive Director)
Company Secretary: Steve Bennetts
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