REG - Aquis Exchange PLC - Interim Results
RNS Number : 6864MAquis Exchange PLC23 September 202123 September 2021
Aquis Exchange PLC
("Aquis", the "Company" or the "Group")
Interim results for the six months ended 30 June 2021
Continued strong growth with EBITDA more than triple 1H20
Aquis Exchange PLC (AQX.L), the exchange services group, is pleased to announce its unaudited results for the six months ended 30 June 2021.
Highlights:
·
Revenue increased 37% to £6.7 million (1H20: £4.9 million)
·
EBITDA grew to £1.6 million (1H20: £0.5 million)
·
Pre-tax profit grew to £1.0 million (1H20: £0.0 million)
·
Cash and cash equivalents at 30 June 2021 of £13.9 million (30 June 2020: £11.2 million)
·
Membership of Aquis Exchange (AQX) grew to 39 (1H20: 31) and there was a 27% increase in the average monthly usage, in terms of chargeable orders (2Q 2021 vs 4Q 2020)
·
Market share of all pan-European trading significantly increased at 5.80% in 2Q21 (4.65% 4Q20, 4.56% 2Q20)
·
Overall share of available liquidity of 22%, the highest of any European MTF
·
Aquis Stock Exchange (AQSE) successfully integrated into the Group and multiple enhancements implemented, resulting in a record fourteen admissions completed during 1H21
Post-period highlights:
·
Currently tracking in line with market expectations for the full year
·
Achieved a new record monthly market share of pan-European trading of 6.2% in July 2021
Alasdair Haynes, Chief Executive Officer of Aquis, commented:
"We are delighted to announce that profits have continued to increase, reflecting the strong momentum maintained in revenue growth. This growth has been driven by our existing Members continuing to increase their trading volumes through our pan-European equity, lit market. The strength of our offering in this division is demonstrated by our having reached 5.80% of all pan-European secondary trading during 2Q21.
Following the completion of the acquisition of AQSE in March 2020 we introduced a number of strategic initiatives which have significantly improved liquidity, spreads and the overall attractiveness of the market. These changes have had a material effect on the number of companies admitted to trading with 14 new admissions during the first half, compared to three in 1H20.
While we anticipate the prevailing economic uncertainty will continue to impact market participants in the short to medium term, we have demonstrated we have the right model, team, technology and vision to deliver shareholder value and look to the future with confidence."
An overview of the results from Alasdair Haynes, CEO, is available to view on this link:
https://www.brrmedia.co.uk/broadcasts-embed/6149d6a43ae1ca74490b15c2/aqx/?popup=true
The Group will be hosting webinars for analysts and retail investors today at 9.00 and 13.00 respectively.
If you would like to register for the analyst webinar, please contact aquis@almapr.co.uk . Investors who would like to attend the retail investor webinar can sign up to Investor Meet Company for free and add themselves to the meeting via https://www.investormeetcompany.com/aquis-exchange-plc/register-investor . Investors who have already registered will be automatically invited.
Enquiries:
Aquis Exchange PLC
Tel: +44 (0)20 3597 6321
Alasdair Haynes, CEO
Jonathan Clelland, CFO and COO
Belinda Keheyan, Head of Marketing
Tel: +44 (0)20 3597 6329
Liberum Capital Limited (Nominated Adviser and Broker)
Tel: +44 (0)20 3100 2000
Clayton Bush
Chris Clarke
Edward Thomas
Kane Collings
Canaccord Genuity Limited (Joint Broker)
Bobbie Hilliam
Patrick Dolaghan
Tel: +44 (0) 20 7523 8000
Alma PR (Financial PR Adviser)
Tel: +44 (0)20 3405 0209
Susie Hudson
Kieran Breheny
aquis@almapr.co.uk
Faye Calow
Notes to editors:
Aquis Exchange PLC is an exchange services group, which operates pan-European cash equities trading businesses (Aquis Exchange/AQX), growth and regulated primary markets (Aquis Stock Exchange/AQSE) and develops/licenses exchange software to third parties (Aquis Technologies).
Aquis Exchange (AQX) is authorised and regulated by the UK Financial Conduct Authority and France's Autorité des Marchés Financiers to operate Multilateral Trading Facility businesses in the UK/Switzerland and in EU27 respectively. AQX operates lit order books and does not allow aggressive non-client proprietary trading, which has resulted in lower market impact and signalling risk on AQX than other trading venues in Europe. According to independent studies, trades on Aquis are less likely to lead to price movement than on other lit markets. AQX uses a subscription pricing model which works by charging users according to the message traffic they generate, rather than a percentage of the value of each stock that they trade.
Aquis Stock Exchange (AQSE) is a stock market providing primary and secondary markets for equity and debt products. It is authorised as a Recognised Investment Exchange, which allows it to operate a regulated listings venue. The AQSE Growth Market is divided into two segments 'Access' and 'Apex', with different levels of admission criteria. The Access market focuses on earlier stage growth companies, while Apex is the intended market for larger, more established businesses.
Aquis Technologies is the software and technology division of Aquis Exchange PLC. It creates and licenses cutting-edge, cost-effective matching engine and trade surveillance technology for banks, brokers, investment firms and exchanges.
Aquis Exchange PLC (AQX.L) is listed on the Alternative Investment Market of the LSE (AIM) market. For more information, please go to www.aquis.eu
For more information, please go to www.aquis.eu and www.aquis.technology
Chief Executive Officer's Report
The six months to 30 June 2021 have been another strong period of growth as we build on the profits achieved during 2020. In addition, we have made good operational progress in all areas to help drive us towards our long-term goals. The fact that we have achieved all this amidst the continued challenging economic circumstances arising from the global Covid-19 pandemic demonstrates our strong operational resilience and the continued demand for our unique offering.
We are very pleased to have implemented our numerous planned enhancements for the AQSE market, and that these changes have been so well received by market participants.
Operational Review
Aquis continued to develop its three divisions throughout the period:
· Aquis Exchange (AQX): its pan-European lit equities market;
· Aquis Stock Exchange (AQSE): a primary listings market for small and mid-cap companies;
· Aquis Technologies: a multi-asset class technology licensing service to an international client base
The Group's Market Data income stream (generated through the sale of AQX and AQSE data) has also grown substantially during the period.
This has enabled us to continue our strong growth as synergies are developed and the business potential is harnessed.
We continue to invest in key personnel in all areas, including the recent appointments of David Stevens as Chief Revenue Office (CRO) in May 2021, and Richard Fisher as Director of Finance (DoF) earlier in the year. Both David and Richard have already demonstrated their value in the short time since they joined Aquis and we are confident that they will help accelerate our business development progress going forward. The strength, experience and commitment of our staff, who have continued to demonstrate an admirably flexible approach during the last six months, remain a key contributor to our success.
Covid-19 Update
As previously communicated, the Group had well-established remote working policies and disaster recovery plans, which were put into practice during 1H20 and which have enabled the remote market operations although Aquis has now implemented a partial flexible return to office working. Thanks to our focus on technology and in line with being a flexible and agile operation, we have continued to serve our clients effectively whilst also pushing ahead with key strategic initiatives.
During 1H21 trading levels have been close to historic averages compared to 1H20 where we saw in the early weeks of the pandemic greatly increased market volumes and volatility which had a short-term positive impact. It is difficult to predict equity market trading volumes in the medium to long term, however, our business model continues to show its strength and we are confident we have the right strategy in place to continue delivering significant growth over the long term.
A summary of progress across our divisions is outlined below.
The Exchanges
The performance of both Aquis Exchange and Aquis Stock Exchange has progressed well. Exchange revenue increased by £1.2m (33%) from £3.7 million to £4.9 million and the number of Members grew from 31 to 39. In addition, a number of Aquis Exchange Members increased their trading volumes materially, with a 27% increase in the average monthly usage, in terms of chargeable orders (2Q 2021 vs 4Q 2020). This resulted in increased monthly subscriptions. There are now nine Members using the top three subscription pricing tiers and 25 in the other five tiers, with five liquidity providers.
Issuer revenue also increased reaching £0.34m as the number of admissions on AQSE grew year on year.
As the business moves forward, we anticipate AQSE and AQX will become increasingly integrated, allowing Members to benefit from the Group's enlarged offering.
Aquis Exchange: Continued strong growth in the core business
Aquis Exchange (AQX) is the Group's pan-European lit secondary trading equities market. It comprises the UK MTF (AQXE) and the French MTF serving EU markets (AQXEU).
The key performance indicators of the Aquis Exchange business all grew during the period. Aquis Exchange's market share of all pan-European trading was 5.8% for 2Q21 (2Q20: 4.56%) and has averaged in excess of 6% during the period since the half year close, reflecting this positive performance.
The Company currently has an offering in excess of 1,700 stocks and ETFs across 15 European markets. This increase includes the resumption of the Swiss market at the beginning of February 2021 following the accord between the UK and Switzerland. The Brexit transition was successfully managed, both during the transition period and thereafter, with a significant proportion of Exchange activity now being executed on AQXEU, the Group's French MTF serving EU markets.
Available liquidity on the exchange was at 22% in 1H21 (23% in 1H20) and it is expected this will continue to underpin future anticipated growth.
The recognition that Aquis Exchange's toxicity is materially lower than its competitors continues to grow amongst investment managers and the wider market. With several market drivers pushing market participants towards lower toxicity, the opportunity for Aquis Exchange to attract a wider membership from across Europe and to facilitate increased trading volumes remains significant.
Aquis Stock Exchange (AQSE): Substantial changes implemented drive momentum
AQSE is a modern market for modern businesses, bringing positive disruption and competition to the listed SME sector. As one of the only two existing options for growing SMEs looking to IPO in the UK, Aquis' vision is for AQSE to become the home for quality growth businesses, applying core Aquis values such as transparency and innovation.
AQSE has now delivered the four key actions which we believe will materially enhance the market:
Action
Purpose
Execution
Segmenting the market
Providing appropriate support throughout the growth cycle
Split the AQSE Growth market into two segments:
· Access
· Apex
Gaining greater institutional and asset manager support
Broadening the pool of available capital for issuers
13% growth in institutions that have publicly affirmed support for AQSE (1H21 vs 2H20)
Prohibiting short selling
Protecting issuers and investors
Short selling has been prohibited on the Apex market for 6 months
Enhanced trading mechanisms
Supporting greater liquidity
Since December 2020 and the introduction of innovative Market maker scheme:
· Spreads reduced 64%
· Value traded has increased >700%
We also entered into arrangements with Fregnan Ltd and Research Tree Ltd. to produce and publish research on AQSE's top-tier Apex stocks. Every Apex stock now has quantitative research on it, provided by Fregnan, available for free through the AQSE website. In addition, any existing fundamental research on Apex stocks is available through a dedicated Research Tree portal.
Fourteen admissions were completed during 1H21 compared to three during 1H20. All were well supported and there is a very strong pipeline of high growth and 'new economy' businesses in conversation with AQSE regarding IPO.
Revenue growth coupled with achieving the targeted cost synergies and savings has significantly reduced the loss generated by AQSE to just £0.1m for the period."
Aquis Technologies
Progress made on a number of projects
Aquis licenses its leading exchange-related technology through its Aquis Technologies division. Aquis Technologies creates and licenses technology for high volume, low latency trading platforms, complex connectivity solutions and real-time trade monitoring and surveillance systems for banks, brokers, investment firms and exchanges.
Aquis recognises license revenue on completion of project delivery in accordance with IFRS accounting statutes. During 1H21 progress was made on a number of projects; however, there were no completed projects during the period. As a result, Aquis Technologies' revenue (net of provision releases) decreased 25% to £0.6m (1H20: £0.8m).
The successful cloud technology Proof of Concept (PoC) has demonstrated the quality of the Aquis Technologies offering and has resulted in a number of new exchange platform prospects. Innovation is at the core of Aquis Technologies and we will be focused on furthering the growth of the Technologies division, developing its products and services to help its clients with the challenges they face and ensuring the high-performance systems continue to be enhanced.
Aquis Market Data
Aquis generates revenue from the sale of data derived from AQX (AQXE & AQXEU) and AQSE to non-Member market participants.
Revenue from market data vendors increased significantly by £0.7m, 187%, to £1.1m for the six month period compared to the 2020 equivalent. The harmonisation of Aquis Exchange (AQX) and Aquis Stock Exchange (AQSE) data pricing has contributed to this increase in data revenues.
Financial Review
Revenue increased 37% to £6.7m (1H19: £4.9m) and the EBITDA profit for the half year was £1.5m, three times the EBITDA profit of £0.5m generated in 1H20. This EBITDA profit and the profit before tax of £1.0m includes £0.2m of income recognised from an impairment credit per IFRS 9 consistent with the 1H20 impairment credit. The EBITDA profit growth is mainly attributable to increased exchange revenue and data revenue as Members' subscriptions have risen as a result of increased trading levels. The Group made some controlled increases in costs during 1H 2021 as it continued to invest in personnel and technological resources and the Group will continue to invest in the future to maintain the business' growth momentum.
The Group's cash and cash equivalents as at 30 June 2021 were £13.9 million (30 June 2020: £11.2 million), demonstrating its continued focus on careful cash management.
Summary and Outlook
Our strategic goal remains to become one of the leading exchange services groups through delivering best-in-class exchange trading opportunities, underpinned by our commitment to first class client service, transparency, simplicity and best-in-class technology. To this end, our investment in R&D will help improve the trading experience for clients, as well as improving our market position and providing further growth and value creation for shareholders. We continue to make significant investment in our technology, sales and marketing activities, in particular in cloud technology, to support our long-term growth across all activities.
Alongside this we are working to enhance our software licensing activities and build presence internationally. We are pleased to have made significant progress on a number of material technology contracts post-period end that will support the second half performance and into FY22.
Looking forward, our focus continues to be on executing on our core growth strategy; increasing trading volumes and improving fundraising prospects for small and mid-cap companies. Notwithstanding the macroeconomic uncertainty, current trading is tracking in line with market expectations for the full year.
We have built good momentum over the past few years, despite facing numerous challenges along the way. This demonstrated the strength of our team and our offering, and I am excited to see what we can achieve across the next six months.
Alasdair Haynes
Chief Executive Officer
AQUIS EXCHANGE PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 30 JUNE 2021
6 months ended 30/06/2021
Year ended 31/12/2020
6 months ended 30/06/2020
Note
£'000
£'000
£'000
Income Statement
Revenue
3
6,687
11,477
4,851
Impairment credit/(charge)
4
178
(100)
183
Administrative expenses
(5,299)
(9,856)
(4,497)
Operating profit
1,566
1,521
537
Investment income
5
-
15
14
Depreciation and amortisation
7,8
(543)
(1,030)
(522)
Net finance costs
18
(15)
(35)
(17)
Profit before taxation
1,008
471
12
Income tax credit
-
307
-
Deferred tax
-
204
-
Profit for the six months/year
1,008
982
12
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Foreign exchange differences on translation of foreign operations, net of tax
17
4
(1)
4
Other comprehensive loss for the year
4
(1)
4
Total comprehensive profit for the year
1,012
981
16
Earnings per share (pence)
6
Basic
Ordinary shares
3.7
3.6
0
Diluted
Ordinary shares
3.5
3.4
0
The consolidated statement of comprehensive income has been prepared on the basis that all operations are continuing operations.
AQUIS EXCHANGE PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2021
6 months ended 30/06/2021
Year ended 31/12/2020 (Restated)
6 months ended 30/06/2020 (Restated)
Note
£'000
£'000
£'000
Assets
Non-current assets
Goodwill
7
83
83
-
Intangible assets
7
792
916
815
Property, plant and equipment
8
1,315
1,579
1,612
Deferred tax asset
10
204
204
-
Trade and other receivables
9
915
840
947
3,309
3,622
3,374
Current assets
Trade and other receivables
9
3,696
2,924
2,742
Cash and cash equivalents
13,860
12,268
11,182
17,556
15,192
13,924
Total assets
20,865
18,814
17,298
Liabilities
Current liabilities
Trade and other payables
11
2,827
2,846
2,329
Non-current liabilities
Lease liabilities
18
953
995
1,092
Total liabilities
3,780
3,806
3,421
Net assets
17,085
14,973
13,877
Equity
Called up share capital
12
2,749
2,717
2,717
Share premium account
13
11,738
10,892
10,892
Other reserves
14
1,055
761
476
Treasury shares
16
(561)
(490)
(409)
Retained earnings/accumulated losses
15
2,100
1,092
197
Foreign currency translation reserve
17
4
1
4
Total equity
17,085
14,973
13,877
The notes to the financial statements on pages 6 to 16 form an integral part of these financial statements. The interim financial statements were approved by the board of directors and authorised for issue on 23 September 2021 and are signed on its behalf by:
J Clelland
Director
A Haynes
Director
AQUIS EXCHANGE PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2021
Note
Share Capital
Share Premium
Other Reserves
Treasury Shares
Retained Earnings
Foreign Currency Translation Reserve
Total
£'000
£'000
£'000
£'000
£'000
£'000
£'000
Balance at 1 January 2020 (Restated)
2,715
10,840
378
(328)
146
1
13,752
Profit for the 6-month period ended 30/06/2020
12
12
Issue of new shares
2
52
54
Movement in share option reserve
137
137
Movement in treasury shares (Restated)
(81)
(81)
Foreign exchange differences on translation of foreign operations
3
3
Balance at 30 June 2020
2,717
10,892
515
(409)
158
4
13,877
Profit for the 6 month period ended
31/12/2020
969
969
Movement in share option reserve
246
246
Movement in treasury shares
(81)
(81)
Foreign exchange differences on
translation of foreign operations
(3)
(3)
Post audit adjustments
(35)
(35)
Balance at 31 December 2020 (Restated)
2,717
10,892
761
(490)
1,092
1
14,973
Profit for the 6-month period ended
30/06/2021
1,008
1,008
Issue of new shares
12,13
32
846
878
Movement in share option reserve
14
294
294
Movement in treasury shares
16
(71)
(71)
Foreign exchange differences on translation of foreign operations
17
3
3
Balance at 30 June 2021
2,749
11,738
1,055
(561)
2,100
4
17,085
AQUIS EXCHANGE PLC
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 30 JUNE 2021
Note
6 months ended 30/06/2021
£'000
Year ended 31/12/2020
£'000
6 months ended 30/06/2020
£'000
Cash flows from operating activities
Cash generated/absorbed by operations
19
1,215
2,130
568
Tax refunded
-
308
-
Finance expense on lease liabilities
18
(15)
(35)
(17)
Net cash inflow from operating activities
1,200
2,403
551
Investing Activities
Recognition of intangible assets
7
(154)
(643)
(311)
Purchase of property, plant and equipment
8
(163)
(115)
(44)
Purchase of treasury shares
16
(71)
-
-
Investment in subsidiaries
-
(259)
-
Interest received
5
-
15
14
Net cash used in / generated by investing activities
(388)
(1,002)
(341)
Financing Activities
Proceeds from share issue
12,13
878
54
54
Principal portion of lease liability
18
(101)
(195)
(98)
Net cash (used in)/ generated by financing activities
777
(141)
(44)
Net increase/(decrease) in cash and cash equivalents
1,589
1,258
167
Cash and cash equivalents at the beginning of the period
12,268
11,011
11,011
Effect of exchange rate changes on cash and cash equivalents
3
(1)
4
Cash and cash equivalents at the end of the period
13,860
12,268
11,182
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS
1. Basis of preparation of half-year report
This condensed consolidated interim financial report for the half-year reporting period beginning 1 January 2021 and ending 30 June 2021 ("interim period") has been prepared in accordance with Accounting Standard IAS 34 Interim Financial Reporting.
The interim report does not include all 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 31 December 2020 and any public announcements made by Aquis Exchange PLC ("Aquis" or the "Company") during the interim reporting period.
The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.
2. Significant changes in the current reporting period
The financial position and performance of the Company was not affected by any specific events and transactions during the six months to 30 June 2021. However, it is worth noting the following:
· At the beginning of the year, a significant percentage of trading of European securities moved to the Aquis European platform, Aquis Exchange Europe SAS. The subsidiary is based in Paris, France and is regulated by the Autorité de Contrôle Prudentiel et de Resolution (ACPR) and the Autorité des Marchés Financiers (AMF). This followed the outcome of trade negotiations between the UK and the European Union, which failed to result in the acknowledgement of financial services equivalence between the two jurisdictions. It is anticipated that financial services equivalence is unlikely to be recognised and the majority of trading in EU securities will remain in Paris. This has not yet had a significant impact on the financial position or performance of the Company, however the lack of equivalence and resulting changes in the regulatory landscape are likely to present new challenges and opportunities for the Company.
3. Revenue
An analysis of the Group's revenue is as follows:
6 months ended 30/06/2021
Year ended 31/12/2020
6 months ended 30/06/2020
£'000
£'000
£'000
Exchange Fees
4,899
7,738
3,682
Licence Fees
379
2,320
607
Issuer Fees
340
524
189
Data Vendor Fees
1,069
895
373
6,687
11,477
4,851
AQUIS EXCHANGE PLCNOTES TO THE FINANCIAL STATEMENTS (continued)
4. Expected credit loss
The expected credit loss on licensing contract assets has been calculated in accordance with IFRS 9:
£'000
As at 31/12/2019
411
Expected credit loss reversal for the period
(183)
As at 30/06/2020
228
Expected credit loss reversal for the period
281
As at 31/12/2020
509
Expected credit loss reversal for the period
(178)
As at 30/06/2021
331
5. Investment income
6 months ended 30/06/2021
Year ended 31/12/2020
6 months ended 30/06/2020
£'000
£'000
£'000
Interest income on bank deposits
0
15
14
6. Earnings per share
6 months ended 30/06/2021
Year ended 31/12/2020
6 months ended 30/06/2020
Number of Shares ('000)
Weighted average number of ordinary shares for basic earnings per share
27,197
27,164
27,158
Weighted average number of ordinary shares for diluted earnings per share
28,638
28,281
28,043
Earnings (£'000)
Profit for the period from continued operations
1,008
982
12
Basic and diluted earnings per share (pence)
Basic earnings per ordinary share
3.7
3.6
0
Diluted earnings per ordinary share
3.5
3.4
0
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
7. Intangible assets
Group Developed Trading Platforms
£'000
Goodwill
£'000
Cost
As at 31/12/2019
2,055
-
Additions- internally generated (Restated)
311
83
As at 30/06/2020 (Restated)
2,366
83
Additions- internally generated
332
-
As at 31/12/2020
2,698
83
Additions- internally generated
154
-
As at 30/06/2021
2,852
83
Accumulated amortisation and impairment
As at 31/12/2019
1,302
-
Charge for the period
249
-
As at 30/06/2020
1,551
-
Charge for the period
231
-
As at 31/12/2020
1,782
-
Charge for the period
278
-
As at 30/06/2021
2,060
-
Carrying amount
As at 31/12/2019
753
-
As at 30/06/2020 (Restated)
815
83
As at 31/12/2020
916
83
As at 30/06/2021
792
83
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
8. Property, plant and equipment
Fixtures, fittings and equipment
Computer Equipment
Non-current portion of IFRS 16 leased assets
Total
£'000
£'000
£'000
£'000
Cost
As at 31/12/2019
249
2,097
1,271
3,617
Additions & disposals
-
44
-
44
As at 30/06/2020
249
2,141
1,271
3,661
Additions & disposals
3
70
-
73
As at 31/12/2020
252
2,211
1,271
3,734
Additions & disposals
-
163
-
163
As at 30/06/2021
252
2,374
1,271
3,897
Accumulated depreciation and impairment
As at 31/12/2019
127
1,476
173
1,776
Charge for the period
25
161
87
273
As at 30/06/2020
152
1,637
260
2,049
Charge for the period
26
167
86
279
As at 31/12/2020
178
1,804
346
2,328
Charge for the period
25
142
87
254
As at 30/06/2021
203
1,946
433
2,582
Carrying amount
As at 31/12/2019
122
621
1,098
1,841
As at 30/06/2020
97
504
1,011
1,612
As at 31/12/2020
74
407
925
1,406
As at 30/06/2021
49
428
838
1,315
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
9. Trade and other receivables
Current
As at 30/06/2021
As at 31/12/2020
As at 30/06/2020
£'000
£'000
£'000
Trade receivables net of impairment
2,918
2,633
2,204
Prepayments
598
279
340
Other receivables
180
12
198
3,696
2,924
2,742
Non-Current
As at 30/06/2021
As at 31/12/2020
As at 30/06/2020
£'000
£'000
£'000
Trade receivables net of impairment
690
618
729
Other receivables
225
222
218
915
840
947
Trade receivables are stated net of any credit impairment provision as set out previously in Note 3 in accordance with IFRS 9, as illustrated below:
As at 30/06/2021
As at 31/12/2020
As at 30/06/2020
(Restated)
£'000
£'000
£'000
Gross trade receivables
3,957
3,777
3,283
Expected credit loss
(349)
(526)
(350)
Trade receivables net of impairment
3,608
3,251
2,933
Impairment includes the expected credit loss on licencing contract assets stated in Note 4.
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
10. Deferred tax asset
A deferred tax asset was recognised in the year ended 31 December 2020, due to the Group becoming profitable for the first time. The Group is expected to continue to be profitable in future years, with the value of the deferred tax asset to be reassessed annually at year end.
As at 30/06/2021
As at 31/12/2020
As at 30/06/2020
£'000
£'000
£'000
Deferred tax asset
204
204
-
11. Trade and other payables
As at 30/06/2021
As at 31/12/2020 (Restated)
As at 30/06/2020
Trade payables
264
263
90
Accruals
1,063
1,560
968
Social security and other taxation
190
427
370
Deferred revenue
935
432
709
Other payables
375
164
192
2,827
2,846
2,329
12. Called up share capital
As at 30/06/2021
As at 31/12/2020
As at 30/06/2020
£'000
£'000
£'000
Ordinary share capital
Issued and fully paid
27,149,559 Ordinary shares of 10p each
2,717
2,715
2,715
Issue of new shares following exercise of 323,267 EMI share options
32
-
-
Issue of new shares following exercise of 20,137 EMI share options
-
2
2
Ordinary share capital
2,749
2,717
2,717
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
13. Share premium account
As at 30/06/2021
As at 31/12/2020
As at 30/06/2020
£'000
£'000
£'000
Share premium
At beginning of year
10,892
10,840
10,840
Issue of new shares following exercise of 323,267 EMI share options
846
-
-
Issue of new shares following exercise of 20,137 EMI share options
-
52
52
Share premium
11,738
10,892
10,892
14. Other Reserves
£'000
As at 31/12/2019 (Restated)
378
Share-based payment expense for the 6-month period ended 30/06/2020 (Restated)
137
As at 31/06/2020 (Restated)
515
Share-based payment expense for the 6-month period ended 31/12/2020
246
As at 31/12/2020
761
Share-based payment expense for the 6-month period ended 30/06/2020
294
As at 30/06/2021
1,055
The reserves relating to share-based payments reflects the estimated value of the approved employee share option schemes, which include the EMI, CSOP and Restricted Share options. The valuation of the options granted is estimated using a US binomial or Black Scholes model. Also included in the share-based payment reserve are the treasury shares purchased by the Trust under the Share Incentive Plan.
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
15. Retained earnings
£'000
As at 31/12/2019
146
Profit for the 6-month period ended 30/06/2020
12
As at 31/06/2020
158
Profit for the 6-month period ended 30/12/2020
969
Post audit adjustments1
(35)
As at 31/12/2020 (Restated)
1,092
Profit for the 6-month period ended 30/06/2021
1,008
As at 30/06/2021
2,100
1 These relate to separate adjustments that were posted in Aquis Stock Exchange Limited (£24k) and Aquis Exchange Europe SAS (£11k) after the Group audit had concluded. The adjustments affect the Group prior year retained earnings and trade payables balances.
16. Treasury shares
Treasury shares are purchased by a Trust under the employee Share Employee Plan. The Trust is consolidated within the Group financial statements and the value of the shares held at the balance sheet date is shown below.
As at 30/06/2021
As at 31/12/2020
As at 30/06/2020 (Restated)
£'000
£'000
£'000
Share premium
At beginning of year
490
328
328
Purchase of treasury shares
71
162
81
Treasury shares
561
490
409
17. Foreign currency translation reserve
The translation of the European subsidiary into the functional currency of the group results in foreign exchange differences that have been recognised in Other Comprehensive Income ('OCI') for the group which have been accumulated in a separate component of equity as illustrated below.
6 months ended 30/06/2021
Year ended 31/12/2020
6 months ended 30/06/2020
£'000
£'000
£'000
At the beginning of the year/period
1
4
1
Foreign exchange differences on translation of foreign operations recognised in OCI
3
(3)
3
At the end of the year/period
4
1
4
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
18. IFRS 16 Leases
The impact on the Groups assets and liabilities, and the related effects on profit and loss, of the Groups leasing activities
(the Group as a lessee) are detailed below.
Right of Use Asset
Property
£
Carrying amount at 1 January 2020
1,271
Depreciation for the period
(87)
Carrying amount at 30 June 2020
1,184
Depreciation for the period
(86)
Carrying amount at 31 December 2020
1,098
Depreciation for the period
(87)
Carrying amount at 30 June 2021
1,011
Of which are:
Current
173
Non-current
838
1,011
Rent deposit asset
Rent deposit asset
£
Carrying amount at 1 January 2020
222
Finance income on rent deposit asset for the period
3
Carrying amount at 30 June 2020
225
Finance income on rent deposit asset for the period
4
Carrying amount at 31 December 2020
229
Finance income on rent deposit asset for the period
3
Carrying amount at 30 June 2021
232
Of which are:
Current
7
Non-current
225
232
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
Lease liability
Lease liability
£
Carrying amount at 1 January 2020
1,378
Finance expense on lease liability for the period
21
Lease payments made during the period
(115)
Carrying amount at 30 June 2020
1,284
Finance expense on lease liability for the period
21
Lease payments made during the period
(115)
Carrying amount at 31 December 2020
1,190
Finance expense on lease liability for the period
18
Lease payments made during the period
(116)
Carrying amount at 30 June 2021
1,092
Of which are:
Current
139
Non-current
953
1,092
Net finance expense on leases
6 months ended 30/06/2021
Year ended 31/12/2020
6 months ended 30/06/2020
£
£
£
Finance expense on lease liability
18
42
21
Finance income on rent deposit asset
(3)
(7)
(3)
Net finance expense relating to leases
15
35
18
The finance income and finance expense arising from the Groups leasing activities as a lessee have been shown net where applicable
as is permitted by IAS 32 where criteria for offsetting have been met.
Amounts recognised in profit and loss
6 months ended 30/06/2021
Year ended 31/12/2020
6 months ended 30/06/2020
£
£
£
Depreciation expense on right-of-use assets
(87)
(173)
(87)
Finance expense on lease liability
(18)
(42)
(21)
Finance income on rent deposit asset
3
7
3
Net impact of leases on profit or loss
(102)
(208)
(105)
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
The total cash outflow for leases amounted to £115k in the 6 months to 30th June 2021.
19. Cash generated from operations
6 months ended 30/06/2021
Year ended 31/12/2020
6 months ended 30/06/2020
(Restated)
£'000
£'000
£'000
Profit after tax
1,008
982
12
Adjustments for:
Taxation
-
(307)
-
Deferred tax
-
(204)
-
Investment revenue
-
(15)
(14)
Amortisation and impairment of intangible assets
278
480
249
Depreciation and impairment of property, plant and equipment
254
550
273
Equity settled share-based payment expense
294
393
98
Other gains/losses
39
40
(29)
Movement in working capital:
Increase in trade and other receivables
(674)
(1,100)
(850)
Increase in trade and other payables
16
1,311
829
Cash generated/ (absorbed) by operations
1,215
2,130
568
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