REG - Actual Experience - Interim Results
24/05/2022 07:00
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RNS Number : 5080M Actual Experience PLC 24 May 2022
24 May 2022
Actual Experience plc
(the "Company" or "Actual Experience" or "Actual")
UNAUDITED CONSOLIDATED INTERIM RESULTS
for the six months ended 31 March 2022
Components in place for transition from start-up to scaleup
Actual Experience plc (AIM: ACT), the Digital Workplace Management System
(Analytics-as-a-Service) company, announces its unaudited consolidated interim
results for the six months ended 31 March 2022.
Financial Highlights
● Revenue of £0.82m (H1 FY21: £0.89m)
● Gross profit of £0.35m (H1 FY21: £0.45m)
● Operating loss of £2.84m (H1 FY21: £2.19m)
● Loss per share of 4.97p (H1 FY21: loss per share of 4.29p)
● Cash and cash equivalents at 31 March 2022 of £5.37m (30 September
2021: £8.22m)
Operational Highlights
● Direct sales team has increased focus on direct customer
engagement
● Appointments of Chief Product Officer and Chief Revenue Officer
have strengthened executive team
● New Digital Workplace Management System (DWMS) portal, soft
launched following consultations with existing customers
● New go-to-market strategy developed to speed up the conversion of
pipeline to customers
Current trading and outlook
● Components in place for transition from a start-up to a scaleup
● Sales activity focus on selling the enhanced product offering
● Pipeline of new business prospects building steadily, with focus on
converting these opportunities into recurring revenue streams
● Lower cost base expected in the second half of the year
Dave Page, CEO of Actual Experience plc, said: "Actual Experience now has the
components in place for transitioning from being a start-up to a scaleup
business. With the new DWMS portal, which harnesses our unique Human
Experience (HX) insights, we have a better defined product that has been well
received by actual and prospective customers. With this improved product
development, we are working to scaleup the business by focusing on direct
sales and marketing efforts to convert our pipeline of global blue-chip
opportunities into revenue generating long term customers.
Whilst the current macro environment has accelerated the need for our product
offering, as enterprises embrace new and hybrid ways of working, we have also
been impacted by the lengthening of procurement processes at these large
businesses. We remain confident that the second half of the year will see
improved momentum as our product and sales investments bear fruit."
Kirsten English, Chair of Actual Experience plc, said: "Our primary focus is
to generate more sales. To this end we have recently invested in a direct
sales force, invested in marketing, hired a Chief Product Officer and a Chief
Revenue Officer to bring onboard further business. Our new portal provides
clear 'quant driven' answers to the questions that the 'C' suite and Board in
corporations are asking about the hybrid workplace; how much time is our
company wasting due to the inefficiency of digital tools and how do we fix
this? How does digital inefficiency impact the wellbeing of our people? Where
are our people working from and what does this mean in terms of our real
estate outlook? Actual Experience's analytics service pinpoints precisely
where companies can invest to make the greatest positive impact on employee
efficiency and wellbeing and critically we can also measure the resultant
return on that investment."
Enquiries:
Actual Experience plc Tel: +44 (0)203 128 8666
Dave Page, Chief Executive Officer
Steve Bennetts, Chief Financial Officer
Singer Capital Markets Advisory LLP Tel: +44 (0)207 496 3000
Shaun Dobson
Will Goode
MHP Communications act@mhpc.com (mailto:act@mhpc.com) Tel: +44 (0)203 128 8666
Reg Hoare
James Bavister
Will Mullan
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?
By underpinning their strategic decision making with our data-driven insights,
our customers gain the clarity and confidence needed to build sustainable
digital ecosystems within their organisations - delivering both a great
employee experience and increasing the efficiency of the digital workplace.
Powered by over 10 years of academic Human Experience research, our Digital
Workplace Management System doesn't need any interaction with employees to
provide a unique and highly actionable dataset that People, Technology and
Finance leaders can rely upon to plan impactful projects against their most
critical agenda items including wellbeing, profitability, DE&I and ESG
initiatives.
Actual Experience is listed on the London Stock Exchange (AIM: ACT). Our
corporate headquarters are in Bath, UK. Actual Experience's unique and
patented digital analytics-as-a-service is founded on cutting-edge research
from Queen Mary University of London.
For further information please visit www.actual-experience.com
(http://www.actual-experience.com)
BUSINESS REVIEW
The start of the financial year for Actual Experience saw two new contract
wins which were announced in November 2021. Both contracts were for Business
Impact Assessments (BIA) and provided clear validation of the quality and
relevance of the Company's technology offering. The first of these new
contract wins was with a Channel Partner to use across its own organisation,
assisting in its new hybrid working policy, as well as providing a powerful
reference as it sells to its own customers. The second contract was with a
leading global food and beverages business. These two contract wins were the
third and fourth awarded to the business since its pivot to the professional
services model.
Having been awarded these two new BIA wins, the Company is now working to
convert them to Continuous Improvement (CI) contracts, as part of our 'land
and expand' strategy, as we have been doing with all our new customers. Since
November of last year, significant progress has been made in converting these
customers to CI contracts. However, the sales team has been finding that in
the current climate of macroeconomic and geopolitical uncertainty, the
procurement processes for the larger multinational enterprises we are selling
into has been lengthened.
Despite the increasing length of time it is taking to convert these contracts
into orders, the board is encouraged by the potential within the pipeline.
As part of our preparedness for transition from start-up to scaleup, we have
recently significantly bolstered our executive team with two experienced hires
to help drive growth.
Firstly, we recruited Scarlet Jeffers as Chief Product Officer to lead the
development of our new product offering and to be responsible for driving a
deep understanding of the needs of our customers and the wider market into our
development roadmap. Scarlet's work has directly led to the development of a
new portal, greatly improving the user experience for our customers and
delivering a better overall product-market fit. With the newly defined product
scheduled for launch in the coming months, we will be able to fully implement
our new go-to-market strategy.
Secondly, we appointed Roy Jugessur as Chief Revenue Officer. This role will
strengthen our customer engagement, sales, and marketing functions as we build
out our pipeline of new business opportunities.
As previously announced, a long-standing contract via a Channel Partner (based
on our legacy offering) has not been renewed due to a change in customer
strategy. This contract delivered revenues of £1.2m in FY2021 and £0.4m in
the current fiscal year.
Board Changes
As previewed in our announcement in September 2021, Kirsten English was
appointed as Chair, with effect from the date of the AGM in March this year.
Kirsten has extensive experience relevant to our business, particularly in
this growth phase as we transition from start-up to scaleup. In the first
months of her tenure, Kirsten has been actively engaging with the Company's
largest shareholders, to ensure an open and collaborative dialogue.
Market
As business emerges from the Covid-19 pandemic, we are seeing a growing number
of examples, especially in larger global blue-chip companies, where management
is embracing the concept of new ways of working, in recognition and that a
hybrid working environment can be more cost efficient for their businesses, as
well as increasing productivity and well-being for their staff. This move to a
new way of working directly benefits Actual Experience, as a customer might
effectively go from having 100 offices to 100,000 home offices, with a
commensurate reduction in the visibility and control of the workplace.
Our DWMS and our unique Human Experience analysis gives our customers greatly
improved insight into the impact that the digital workplace is having on
employee and business efficiency. This service is crucial for many businesses
grappling with a drastic change from the traditional five-day office week. Not
only does our technology allow customers to be more focussed in terms of
targeting capital expenditure and reducing operational costs to maximise
efficiency and productivity, our product also facilitates a greater level of
employee engagement, playing a part in ensuring that separation and physical
distance between employees does not lead to a fractured working environment.
By coupling business impact insights with highly actionable technology data,
we can support our customers in creating a sustainable future of work in their
business.
Strategy
Having previously completed our pivot to our new Analytics-as-a-Service
offering, we are now ready to scaleup our business by focussing on direct
engagement with our prospective and existing customers to ensure we are
delivering the best value to customers that we can with our technology.
We continue to develop our direct sales capability, with our new Chief Revenue
Officer, Roy Jugessur in place to strengthen our sales function, and with
further product enhancements;
● Greater automation of our reporting to reduce the resource
required to deliver to individual customers each time, this will enable us to
scale effectively and quickly as the pipeline closes.
● Scalability of our service clouds so that we can cost-effectively
handle the demands of the world's largest enterprises as we enter an
aggressive growth phase.
Product development
Chief Product Officer Scarlet Jeffers has been leading the development of our
new DWMS offering and is responsible for driving into our work a deep
understanding of the needs of our customers and the wider market into our
work. In developing the new portal, Scarlet and her team have been engaging
directly with our prospective and existing customers to understand more
clearly their wants and needs. We are:
● Soft-launching an engaging, intuitive customer portal to show the
business value of our insights with greater impact. This will allow us to
optimise margins and also pave the way for building resonance in the market as
we become recognisable in our niche
● Increasing the capability of our measurement software to capture
non-invasive diagnostics about home worker internet setups and provide the
level of granularity that large enterprise organisations need in order to make
hybrid working truly sustainable
● Using a refreshed Human Experience Score to give a more intuitive
understanding in the market and to be reflective of the experience of home
workers by accounting for variability in the digital workplace
● Putting heavy focus on doing more with our data, finding ways to
provide deeper insights and working to understand how we can interface with
other sources of information for our customers in the future
Sales & Marketing
In the period, Actual Experience took several positive steps to improve its
sales function, with further investment in the direct sales team. Our direct
sales team has focussed on increasing the level of direct customer engagement,
which promises to assist in converting pipeline prospects into paying
customers.
We have focussed our marketing activity on various means of testing and
evaluation of messaging and positioning to people leaders (CHROs) and finance
leaders (CFOs). This has included participation in conferences, round tables,
podcast style interviews, blogs and other forums, particularly in the HR
space, that has helped to improve the positioning and value of our product.
Outlook
Actual Experience is now well prepared to scaleup its operations. Market
conditions remain encouraging for our business, as our technology offering
directly supports the needs of many large blue-chip companies that are
increasingly looking to embrace new hybrid ways of working. It is becoming
ever clearer that 'new ways of working' are here to stay and are no longer
directly a temporary response to the impact of Covid-19.
With the newly refined portal and increased customer engagement, the Company
is now at a stage where further development of the product is not the key
priority. Instead, we are transitioning to a scaleup business by focussing on
our direct sales and marketing functions to ensure we maximise the breadth and
depth of businesses that can feed into our active pipeline of prospects.
The increasing length of procurement processes at large, global blue-chip
companies has proven a challenge. However, the Board expects that the second
half of 2022 will see increased momentum as the benefits of our improved
product offering and sales functions lead to new 'wins'.
FINANCIAL REVIEW
Consolidated Income Statement
Total revenue for the six months to 31 March 2022 was £824,706, a decrease on
the prior year of 7.3% (H1 FY21: £889,467). This decrease reflects the
previously announced cancellation of a longstanding contract that relied on
our legacy product offering, partly offset by new DWMS 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 96.4%
of sales (H1 FY21: 97.9%).
A gross profit of £354,386 was achieved in the period, compared to the gross
profit of £446,902 in the corresponding period in 2021. The gross margin for
the six months was 43.0%, representing a decrease from the prior period (H1
FY20: 50.2%). This decrease in gross margin reflects the impact of fixed costs
on a lower revenue period and investment made in cloud infrastructure to
support new DWMS revenue opportunities.
Administrative costs amounted to £3,194,804, compared to £2,632,341 in the
six months to 31 March 2021. This increase primarily arose from the investment
in sales and marketing activities in the period
The functional cost breakdown is as follows:
Six months ended Six months ended Year
31 March 31 March ended
2022 2021 30 September
2021
£ £ £
Sales and marketing 971,671 564,187 1,548,040
Research and development 1,000,714 1,018,316 2,131,682
Impairment to previously capitalised spend - - 820,110
Operational support 580,263 489,335 1,008,287
Finance and administration 634,331 535,780 1,209,945
Foreign exchange losses 7,825 24,723 3,850
Total 3,194,804 2,632,341 6,721,914
It is anticipated that administrative costs will be lower in the in the second
half of the year, due primarily to a combination of lower employee headcount
and reduced marketing expenditure and will continue to be kept under review.
As disclosed in the notes to the Company's 2021 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 2022, prior to IAS 38 adjustments, was £976,956 (H1 FY21:
£861,558).
The Group recorded an operating loss in the period of £2,840,418 (H1 FY21:
loss of £2,185,439) and a loss per share of 4.97p (H1 FY21: loss per share of
4.29p). A summary of the Group's results is set out below
Six months ended Six months ended Year
31 March 31 March ended
2022 2021 30 September
2021
£ £ £
Revenue 824,706 889,467 1,741,207
Gross profit 354,386 446,902 833,209
Operating loss (2,840,418) (2,185,439) (5,888,705)
Loss for the period/year (2,849,540) (2,150,074) (5,847,195)
Balance sheet
The Group has a debt free balance sheet. Cash and cash equivalents decreased
during the period, from £8,216,198 at 30 September 2021 to £5,373,451 at 31
March 2022, in line with expectations. This decrease arose from operating
losses in the period.
Free cash flow for the period was £(2,796,982) (H1 FY21: £(2,056,338)). This
increase reflects the higher operating loss; as noted above, this primarily
arose from an increase in Sales and Marketing 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 £393,161 at 31 March 2022 (31 March 2021:
£986,669) comprise trade debtors of £30,451, prepayments of £235,910 and
other debtors of £126,800.
Cash flow statement
The movement in cash and cash equivalents during the period was:
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2022 2021 2021
£ £ £
Net cash used in operating activities (2,375,900) (1,661,947) (3,145,093)
Net cash used in investing activities (418,108) (394,088) (713,511)
Net cash generated from/(used in) financing activities (50,007) 9,372,616 9,324,707
Effect of exchange rate fluctuations 1,268 (6,077) (4,179)
Movement during the period/year (2,842,747) 7,310,504 5,461,924
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 2022
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2022 2021 2021
£ £ £
Revenue 824,706 889,467 1,741,207
Cost of sales (470,320) (442,565) (907,998)
Gross profit 354,386 446,902 833,209
Administrative expenses (3,194,804) (2,632,341) (6,721,914)
Operating loss (2,840,418) (2,185,439) (5,888,705)
Finance income 2,974 303 2,734
Finance expense (12,096) (14,010) (27,285)
Finance expense - net (9,122) (13,707) (24,551)
Loss before tax (2,849,540) (2,199,146) (5,913,256)
Tax - 49,072 66,061
Loss for the period/year (2,849,540) (2,150,074) (5,847,195)
Other comprehensive income:
Items that are or may be reclassified to profit or loss:
Foreign currency difference on translation of overseas operations 5,521 (18,283) (19,314)
Total comprehensive loss for the period/year (2,844,019) (2,168,357) (5,866,509)
Loss per ordinary share
Basic and diluted (4.97)p (4.29)p (10.84)p
Actual Experience plc
Consolidated statement of financial position
As at 31 March 2022
Unaudited Unaudited Audited
At 31 March At 31 March At 30 September
2022 2021 2021
£ £ £
Non-current assets
Property, plant and equipment 47,634 29,423 48,879
Right-of-use assets 614,918 726,710 670,814
Intangible assets 873,441 1,816,023 897,199
Total non-current assets 1,535,993 2,572,156 1,616,892
Current assets
Trade and other receivables 393,161 986,669 584,819
Income tax receivable 44,103 342,331 44,103
Cash and cash equivalents 5,373,451 10,064,778 8,216,198
Total current assets 5,810,715 11,393,778 8,845,120
Total assets 7,346,708 13,965,934 10,462,012
Non-current liabilities
Deferred tax (8,826) (4,770) (8,901)
Lease liabilities (545,691) (662,915) (604,894)
Total non-current liabilities (554,517) (667,685) (613,795)
Current liabilities
Trade and other payables (700,957) (705,518) (897,041)
Lease liabilities (117,224) (113,259) (115,246)
Total current liabilities (818,181) (818,777) (1,012,281)
Total liabilities (1,372,698) (1,486,462) (1,626,076)
Net assets 5,974,010 12,479,472 8,835,936
Equity
Share capital 114,681 114,388 114,538
Share premium 44,231,620 44,191,196 44,212,455
Accumulated losses (38,372,291) (31,826,112) (35,491,057)
Total equity 5,974,010 12,479,472 8,835,936
Actual Experience plc
Consolidated statement of changes in equity
For the six months ended 31 March 2022
Share Share Accumulated Total
capital premium losses equity
£ £ £ £
Unaudited
As at 30 September 2020 95,284 34,768,349 (29,666,862) 5,196,771
Loss for the period - - (2,150,074) (2,150,074)
Other comprehensive income for the period - - (18,283) (18,283)
Total comprehensive loss for the period - - (2,168,357) (2,168,357)
Issue of shares 19,104 9,422,847 - 9,441,951
Share-based payment credit - - (9,107) (9,107)
As at 31 March 2021 114,388 44,191,196 (31,826,112) 12,479,472
Audited
As at 30 September 2020 95,284 34,768,349 (29,666,862) 5,196,771
Loss for the year - - (5,847,195) (5,847,195)
Other comprehensive income for the year - - (19,314) (19,314)
Total comprehensive loss for the year - - (5,866,509) (5,866,509)
Issue of shares 19,254 9,444,106 - 9,463,360
Share-based payment expense - - 42,314 42,314
At 30 September 2021 114,538 44,212,455 (35,491,057) 8,835,936
Unaudited
As at 1 October 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)
At 31 March 2022 114,681 44,231,620 (38,372,291) 5,974,010
Actual Experience plc
Consolidated statement of cash flows
for the six months ended 31 March 2022
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2022 2021 2021
£ £ £
Cash flows from operating activities
Loss before tax (2,849,540) (2,199,146) (5,913,256)
Adjustment for non-cash items:
Depreciation of property, plant and equipment 14,193 32,519 48,413
Depreciation of right-of-use assets 55,896 55,896 111,792
Amortisation of intangible assets 431,911 548,202 933,780
Impairment of intangible assets - - 820,110
Loss/(profit) on disposal of property, plant and equipment 17 - (359)
Non-cash employee benefit expense - Share-based payments
(37,215) 9,107 42,314
Finance income - net 9,122 13,707 24,551
Operating cash outflow before changes in working capital (2,375,616) (1,539,715) (3,932,655)
Movement in trade and other receivables 198,996 (311,968) 94,827
Movement in trade and other payables (199,205) 189,754 373,405
Cash outflow from operations (2,375,825) (1,661,929) (3,464,423)
Income tax received (75) (18) 319,330
Net cash flows used in operating activities (2,375,900) (1,661,947) (3,145,093)
Cash flow from investing activities
Development of intangible assets (408,153) (391,444) (678,308)
Purchase of property, plant and equipment (12,929) (2,947) (38,300)
Proceeds from sale of property, plant and equipment - - 363
Finance income 2,974 303 2,734
Net cash outflow from investing activities (418,108) (394,088) (713,511)
Cash flow from financing activities
Proceeds from issue of share capital, net of costs 19,308 9,441,951 9,463,360
Principal element of lease payments (69,315) (69,315) (138,630)
Inflow/outflow to Employee Benefit Trust - (20) (23)
Net cash (outflow)/inflow from financing activities (50,007) 9,372,616 9,324,707
(Decrease)/increase in cash and cash equivalents (2,844,015) 7,316,581 5,466,103
Effect of exchange rate fluctuations on cash held 1,268 (6,077) (4,179)
Cash and cash equivalents at start of year / period 8,216,198 2,754,274 2,754,274
Cash and cash equivalents at end of year / period 5,373,451 10,064,778 8,216,198
Notes to the consolidated interim report
For the six months ended 31 March 2022
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
23 May 2022.
2 Basis of preparation
This unaudited interim condensed consolidated financial information has been
prepared under the historical cost convention and in accordance with AIM Rules
for Companies. The interim condensed consolidated financial information has
been prepared on a going concern basis and is presented in Sterling to the
nearest £1.
'On 31 December 2020, IFRS as adopted by the European Union at that date was
brought into UK law and became UK-adopted International Accounting Standards,
with future changes being subject to endorsement by the UK Endorsement Board.
Actual Experience transitioned to UK-adopted International Accounting
Standards in its consolidated financial statements on 1 October 2021. This
change constitutes a change in accounting framework. However, there is no
impact on recognition, measurement or disclosure in the period reported as a
result of the change in framework. This interim condensed consolidated
financial information for the six months ended 31 March 2022 has been prepared
in accordance with the UK-adopted International Accounting Standards.
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 2021, 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 2022 and for the six months ended 31 March 2021 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 2022 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 2021 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 2022 was £5.4m, which will provide
the Group and Company with sufficient resources to meet their liquidity
requirements at least until 30 September 2023, based on the Group's latest
budgeted sales and cost projections. 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 also, the Group and Company will continue to meet
their liquidity requirements over the period.
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 September 2023.
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
2022 2021 2021
Current tax:
UK Corporation tax on losses of the period/year - (46,781) (63,705)
Overseas taxes 75 18 (4,178)
Deferred tax:
Origination and reversal of timing differences (75) (2,309) 1,822
Total tax credit - (49,072) (66,061)
5 Loss per share
The calculation of basic and diluted loss per share for the six months to 31
March 2022 was based upon the loss attributable to ordinary shareholders of
£2,849,540 (six months to 31 March 2021: £2,150,074, year ended 30 September
2021: £5,847,195) and a weighted average number of ordinary shares in issue
of 57,294,806 (six months to 31 March 2021: 50,058,854, year ended 30
September 2021: 53,911,253), calculated as follows:
Weighted average number of ordinary shares
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2022 2021 2021
Issued ordinary shares at start of period/year 57,269,321 47,642,124 47,642,124
Effect of shares issued 25,485 2,416,730 6,269,129
Weighted average number of shares at end of period/year 57,294,806 50,058,854 53,911,253
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
2022.
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)
Dave Page (Chief Executive Officer)
Steve Bennetts (Chief Financial Officer)
Stephen Davidson (Non-Executive Director)
Sir Bryan Carsberg (Non-Executive Director)
Company Secretary: Steve Bennetts
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