REG - Aquis Exchange PLC - Interim Results
21/09/2023 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230921:nRSU1316Na&default-theme=true
RNS Number : 1316N Aquis Exchange PLC 21 September 2023
21 September 2023
Aquis Exchange PLC
("Aquis", the "Company" or the "Group")
Interim results for the six months ended 30 June 2023
Continued momentum with increased revenue across all divisions
Aquis Exchange PLC (AQX.L), the creator and facilitator of next-generation
financial markets, is pleased to announce its unaudited results for the six
months ended 30 June 2023.
Highlights:
· Net revenue up 17% to £9.7m (H122: £8.3m)
· EBITDA up 26% to £1.7m (H122: £1.3m)
· Profit before tax up 64% to £1.1m (H122: £0.7m)
· Basic earnings per share 3.8p (H122: 2.5p)
· Cash and cash equivalents of £13.9m (H122: £13.3m)
· All four divisions were profitable in the period:
o Aquis Markets - Further diversification of the product suite, with addition of
Dark to Lit Sweep
o Aquis Technologies - Contract pipeline continues to develop in line with
expectations
o Aquis Data - Revenues up 34%; significant progress towards an EU consolidated
tape
o Aquis Stock Exchange - Welcomed five new listings despite tough market
conditions and low admissions throughout the market
Post-period highlights:
· Change to Aquis' proprietary trading rule announced, further enhancing range
of execution options available to members
· Investment in OptimX Markets adds additional connectivity to Aquis Matching
Pool (AMP) and provides clients with ability to cross large blocks
Aquis CEO, Alasdair Haynes said:
"2023 so far has been a year of continued momentum for Aquis, with revenues
continuing to increase across all divisions.
"Following the successful integration of the Aquis Matching Pool in 2022,
Aquis Markets has seen increased revenues. We have also worked to further
diversify the products that will be made available to members, adding block
trading via OptimX Markets and changing our proprietary trading rule to give
members greater execution choice along with best execution outcomes. These
changes are laying the foundations for future growth in market share over the
medium-term.
"Our technology contract pipeline has continued to develop as expected, with a
renewal and an extension over the period demonstrating the long-term nature of
these relationships.
"Within Aquis Data, we were pleased to see significant progress towards an EU
consolidated tape during the period, which is likely to disproportionately
benefit Aquis.
"And finally despite challenging market conditions, we remain positive on the
long-term potential of the Aquis Stock Exchange, which remains profitable.
"With economic uncertainty continuing to affect all market participants, we
are pleased to be delivering continued growth, strategic progress and value
for shareholders. We have had a positive start to 2023, with continued revenue
growth across all divisions and trading remains in line with Board
expectations for the full year."
An overview of the results from Alasdair Haynes is available to view on this
link.
(https://gbr01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.brrmedia.co.uk%2Fbroadcasts-embed%2F650863ec50a62b392af1590e%2Fevent%2F%3Fpopup%3Dtrue&data=05%7C01%7Cagilbert%40aquis.eu%7Ccf352934290d4812be3108dbb9e99e66%7Cb7e914d8ee8446f294c4c8df61052aff%7C0%7C0%7C638308185534581649%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=ULpVUs4AZAoa9q9sTXDyKSCaMw7PHUF0QZERduBZo6g%3D&reserved=0)
The Group will be hosting webinars for analysts and retail investors today at
9.30 and 16.00 respectively.
If you would like to register for the analyst webinar, please contact
aquis@almapr.co.uk (mailto: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
(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
Richard Fisher, CFO Tel: +44 (0)20 3597 6329
Adele Gilbert, Head of Marketing
Investec Bank plc (Nominated Adviser and Broker) Tel: +44 (0)20 7597 4000
David Anderson
Bruce Garrow
Lydia Zychowska
St John Hunter
Canaccord Genuity Limited (Joint Broker) Tel: +44 (0) 20 7523 8000
Emma Gabriel
George Grainger
VSA Capital Limited (AQSE Corporate Adviser) Tel: +44(0)20 3005 5000
Andrew Raca
Alma PR (Financial PR Adviser) Tel: +44 (0)20 3405 0209
Josh Royston aquis@almapr.co.uk (mailto:aquis@almapr.co.uk)
Rebecca Sanders-Hewett
Kieran Breheny
Notes to editors:
About Aquis Exchange PLC
Aquis Exchange PLC ("Aquis") is a creator and facilitator of next-generation
financial markets, through the provision of accessible, simple and efficient
stock exchanges, trading venues and technology.
Aquis consists of four divisions:
Aquis Markets operates lit and dark order books, covering 16 European markets.
For its lit books, Aquis 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 Technologies is the software and technology division of Aquis. It
focuses on building better markets via the creation and licensing of
cutting-edge, cost-effective exchange infrastructure technology and services,
including matching engine and trade surveillance solutions.
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'; the
Access market focuses on earlier stage growth companies, while Apex is the
intended market for larger, more established businesses.
Aquis Data generates revenue from the sale of data derived from Aquis Markets
and Aquis Stock Exchange to non-Member market participants.
Aquis is authorised and regulated by the UK Financial Conduct Authority and
France's Autorité de contrôle prudentiel et de résolution and L'Autorité
des marchés financiers to operate Multilateral Trading Facility businesses in
the UK & Switzerland markets and in EU27 markets respectively. Aquis
Exchange PLC is quoted on the Aquis Stock Exchange and on the AIM Market (AIM)
of the LSE. For more information, please go to www.aquis.eu
(http://www.aquis.eu/) .
Interim Report
The six months to 30 June 2023 has been another strong period of profitable
growth as revenues increase across all divisions, as we build on our
achievements in 2022. Alongside this, we have continued to make good
operational progress in all areas to expand our market opportunity. Achieving
this despite challenging economic circumstances reflects our strong
operational resilience and the continued demand for our offering across all
three divisions.
Operational Review
We have continued our planned investment in key business areas such as growing
our technology development team. These investments enable us to maintain our
internally used Aquis technology set and support the ongoing growth in our
technology licencing business.
The performance of Aquis Markets has progressed well. Exchange revenue
increased by £0.8m (14%) from £5.1m to £5.9m. Since Aquis Matching Pool
(AMP) was launched in 2022, trading volumes have increased with a closing
0.76% market share by 30 June 2023 (0.84% at 30 December 2022) demonstrating
the resilience of the Aquis platform despite difficult market conditions.
The Aquis Technologies contract pipeline has developed in line with
expectations, and multiple renewals and/or extensions over the period
continues to demonstrate customer loyalty and stickiness of revenue. The
average maturity of a technology contract has increased further to 3.4 years.
On Aquis Stock Exchange, issuer revenue increased by 29%, reaching £0.8m as
the number of admissions continues to grow despite a generally challenging
economic climate for raising finance and a reduction in new issues. There are
currently 104 securities on AQSE.
Aquis Markets
Continued revenue growth in the core business; ongoing success of AMP despite
challenging market conditions; foundations laid for future market share gains
through additional products and innovative rule change
Aquis Markets is the Group's pan-European secondary trading equities market.
It comprises the UK MTF (AQXE) and the French MTF serving EU markets (AQEU).
Aquis Markets currently offers over 2,100 stocks and ETFs across 16 European
markets. A significant proportion of Markets activity is now being executed on
AQEU, the Group's French MTF serving EU markets.
Average market share in 1H23 was 5.1% (5.0% 1H22). Market conditions remain
challenging with lower lit market volumes across the board, but in the period
Aquis has continued to grow its product offering with the introduction of our
Dark to Lit Order Sweep functionality and also seen strong growth in our
Auction on Demand (AoD) product.
Aquis Matching Pool: Following the acquisition of the business assets
comprising the UBS MTF, Aquis has seen pleasing levels of activity with the
number of members and levels of trading experienced to date growing from those
seen at acquisition, with Management confident of future opportunities to
grow.
Post-period end, Aquis Markets announced a change to the proprietary trading
rule on its UK and EU trading platforms. In response to member demand, the
rule change will allow liquidity providers the option to choose if they wish
to interact with aggressive non-client proprietary trading or not; providing
members with greater choice and immediacy of execution. We expect this to
positively contribute to our growth in market share over the medium term.
Aquis Technologies
Progress made on a number of projects with continuing revenues from existing
relationships
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 standards, which can lead to lumpy revenue
recognition, period on period. Despite the financial reporting requirements
under revenue recognition standards, these contracts provide consistent
long-term cash inflows for the business.
During 1H23, significant progress was made on several projects, namely where
regulatory work had been completed on behalf of one customer and additional
licences were provided to another existing customer. The work undertaken by
the technologies team will pave the way for further offerings in the future.
As a result, net revenues in the technology division have remained steady at
£1.1m in 1H23 (£1.1m in 1H22).
In Q1 2023 Aquis Equinox, the world's first 24/7, no downtime, matching engine
was launched, and the division continues to make exciting progress in its
cloud services offering which will not only lead to future synergies within
the Group's trading platforms, but also for new and existing technology
licencing customers.
Aquis Technologies currently has seven contracts, on which five have
recognised revenue. Management expects that revenue will be recognised on one
of the two remaining contracts in H2 2023.
Aquis Data
Aquis generates revenue from the sale of data derived from Aquis Markets (AQXE
& AQEU) and Aquis Stock Exchange to non-Member market participants. The
total number of market data customers by 30 June 2023 was 85.
Revenue from market data vendors increased significantly by £0.5m (34%) to
£1.8m for the six-month period compared to the 2022 equivalent, with
continued growth in both terminal use and non-display licences across the
period.
The creation of a consolidated tape in both the UK and EU presents opportunity
for future revenue. There was progress made on the EU consolidated tape during
the period, with administrative process to follow. The advent of an equities
consolidated tape in either jurisdiction would disproportionately benefit
Aquis.
Aquis Stock Exchange (AQSE)
Momentum building despite wider slowdown in market activity
Aquis Stock Exchange 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 Aquis Stock Exchange to become the home for quality growth
businesses, applying core Aquis values such as transparency and innovation.
Five admissions were completed during 1H23 (six at our principal competitor)
compared to 12 during 1H22. This was reflective of a general slowdown in IPO
activity across the market due to challenging economic conditions.
All Aquis Stock Exchange IPOs were well supported and there is a very strong
pipeline of high growth and 'new economy' businesses.
Having achieved profitability ahead of forecasts in 2022, it is good to see
the resilience of earnings with profitability maintained despite challenging
IPO market conditions.
Financial Review
Net revenue increased 17% to £9.7m (1H22: £8.3m) and
the EBITDA profit for the half year was £1.7m, a 26% increase on the
EBITDA profit of £1.4m generated in 1H22. This EBITDA profit and the profit
before tax of £1.1m includes £0.3m of income recognised from an impairment
credit per IFRS 9 consistent with the 1H22 impairment credit.
Divisional revenue:
6 months to 6 months to
June 2023 (£'000s)
June 2022 (£'000s)
Markets 5,869 5,112
Technologies 1,132 1,087
Data 1,840 1,376
Aquis Stock Exchange 832 699
9,673 8,274
EBITDA has improved with revenue growth ahead of the controlled increase in
costs during 1H 2023 and the back end of last year as the Group continued to
invest in personnel and technological resources. The Group will continue to
invest in the future to maintain the business's growth momentum.
Operating costs have increased by 15% to £8.0m (H1 2022: £6.9m) reflecting
primarily increased headcount in the period as well as inflation on both staff
cost and data centre costs and increased data costs. Aquis continues to seek
and be able to recruit top talent. A focus continues to be recruitment in the
development team, where a broadly stable proportion of costs is capitalised
and then amortised over three years reflecting the ongoing value derived from
these activity sets. Physical hardware acquired is capitalised and depreciated
over a three year useful economic life. Other costs are recognised as
operating in nature and reflected in the P&L as incurred.
The Group continues to maintain a strong balance sheet and cash equivalents at
30 June 2023 were £13.9m (30 June 2022: £13.3m). The Group continues to
generate cash above operational requirement which has allowed the ongoing
transfer of funds to the Group Trusts which have purchased shares in support
of the Group share schemes.
Summary and Outlook
2023 so far has been a year of continued momentum for Aquis, with revenues
continuing to increase across all divisions.
Following the successful integration of the Aquis Matching Pool in 2022, Aquis
Markets has seen increased revenues. We have also worked to further diversify
the products that will be made available to members, adding block trading via
OptimX Markets and changing our proprietary trading rule to give members
greater execution choice along with best execution outcomes. These changes
are laying the foundations for future growth in market share over the
medium-term.
Our technology contract pipeline has continued to develop as expected, with a
renewal and an extension over the period demonstrating the long-term nature of
these relationships.
Within Aquis Data, we were pleased to see here was significant progress
towards an EU consolidated tape during the period, which is likely to
disproportionately benefit Aquis.
And finally, despite challenging market conditions, we remain positive on the
long-term potential of the Aquis Stock Exchange, which remains profitable.
With economic uncertainty continuing to affect all market participants, we are
pleased to be delivering continued growth, strategic progress and value for
shareholders. We have had a positive start to 2023, with continued revenue
growth across all divisions and trading remains in line with Board
expectations for the full year.
AQUIS EXCHANGE PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS
ENDED 30 JUNE 2023
6 months ended 30/06/2023 Year ended 31/12/2022 6 months ended 30/06/2022
Note £'000 £'000 £'000
Income Statement
Revenue 3 9,342 19,930 7,849
Impairment credit/(charge) on contract assets 4 331 132 425
Impairment credit / (charge) on trade and other receivables 4 - (13) 26
Administrative expenses (7,976) (14,239) (6,956)
Operating profit 1,697 5,810 1,344
Investment income 5 169 29 4
Depreciation and amortisation 7,8 (672) (1,259) (627)
Net finance costs 19 (49) (53) (22)
Profit before taxation 1,145 4,527 699
Income tax (charge)/credit 11 (99) 157 -
Profit after taxation 1,046 4,684 699
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Foreign exchange differences on translation of foreign operations, net of tax 18 (37) 181 (42)
Other comprehensive loss for the year (37) 181 (42)
Total comprehensive profit for the year 1,009 4,865 657
Earnings per share (pence)
Basic
Ordinary shares 6 3.8 17.0 2.5
Diluted
Ordinary shares 6 3.6 16.5 2.5
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 2023
6 months ended 30/06/2023 Year ended 31/12/2022 6 months ended 30/06/2022
Note £'000 £'000 £'000
Assets
Non-current assets
Goodwill 7 83 83 83
Intangible assets 7 1,253 1,032 772
Property, plant and equipment 8 3,829 4,156 4,263
Deferred tax asset 10 1,594 1,594 1,292
Trade and other receivables 9 5,938 5,352 4,714
12,697 12,217 11,124
Current assets
Trade and other receivables 9 4,970 4,135 2,786
Cash and cash equivalents 13,905 14,171 13,320
18,875 18,306 16,106
Total assets 31,572 30,523 27,230
Liabilities
Current liabilities
Trade and other payables 12 4,495 4,268 4,453
Non-current liabilities
Lease liabilities 19 2,667 2,875 3,214
Total liabilities 7,162 7,143 7,667
Net assets 24,410 23,380 19,563
Equity
Called up share capital 13 2,752 2,751 2,751
Share premium account 14 11,810 11,785 11,780
Other reserves 15 2,320 1,813 1,860
Treasury shares 17 (3,798) (3,350) (3,001)
Retained earnings 16 11,363 10,317 6,332
Foreign currency translation reserve 17 (37) 64 (159)
Total equity 24,410 23,380 19,563
The notes to the financial statements on pages 10 to 22 form an integral part
of these financial statements. The interim financial statements were approved
by the board of directors and authorised for issue on 21 September 2023 and
are signed on its behalf by:
R Fisher A Haynes
Director Director
AQUIS EXCHANGE PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED
30 JUNE 2023
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 2022 2,751 11,771 1,118 (1,527) 5,633 (117) 19,629
Profit for the 6-month period ended 30/06/2022 699 699
Issue of new shares 9 9
Movement in share option reserve 742 742
Movement in treasury shares (1,474) (1,474)
Foreign exchange differences (42) (42)
on translation of
foreign operations
Balance at 30 June 2022 2,751 11,780 1,860 (3,001) 6,332 (159) 19,563
Profit for the 6 month period ended 3,985 4,180
31/12/2022
Issue of new shares 5 5
Movement in share option (47) (47)
Reserve
Movement in treasury shares (349) (349)
Foreign exchange differences 223 28
on translation of foreign
operations
Balance at 31 December 2022 2,751 11,785 1,813 (3,350) 10,317 64 23,380
Profit for the 6-month period ended 1,046 1,046
30/06/2023
Issue of new shares 13,14 1 25 26
Movement in share option reserve 15 507 507
Movement in treasury shares 17 (448) (448)
Foreign exchange differences on translation of foreign operations 18 (101) (101)
Balance at 30 June 2023 2,752 11,810 2,320 (3,798) 11,363 (37) 24,410
AQUIS EXCHANGE PLC
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 30
JUNE 2023
Note 6 months ended 30/06/2023 Year ended 31/12/2022 6 months ended 30/06/2022
£'000 £'000 £'000
Cash flows from operating activities
Cash generated/absorbed by operations 20 1,101 3,962 1,082
Overseas tax paid (219) - -
Finance expense on lease liabilities 19 49 53 22
Net cash inflow from operating activities 931 4,015 1,104
Investing Activities
Recognition of intangible assets 7 (509) (778) (282)
Purchase of property, plant and equipment 8 (57) (769) (480)
Interest received 5 169 35 4
Net cash used in / generated by investing activities (397) (1,512) (758)
Financing Activities
Proceeds from share issue 13,14 26 14 9
Purchase of treasury shares 17 (448) (1,956) (1,000)
Principal portion of lease liability 19 (257) (301) (39)
Net cash (used in)/ generated by financing activities (679) (2,243) (1,030)
Net increase/(decrease) in cash and cash equivalents (145) 260 (684)
Cash and cash equivalents at the beginning of the period 14,171 14,046 14,046
Effect of exchange rate changes on cash and cash equivalents (121) (135) (42)
Cash and cash equivalents at the end of the period 13,905 14,171 13,320
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 2023 and ending 30 June 2023 ("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 2022 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 post balance sheet events
On 7 August 2023 Aquis Exchange PLC acquired a minority stake in OptimX
Markets Inc. (OptimX), a US-based financial services start-up focused on the
block trading market (the "Investment"). The investment is split into two
tranches: Aquis will subscribe US$0.75m out of a total first tranche of
US$3.0m payable in cash, followed by a second tranche in 12 months of a
further US$0.75m out of a total $3.0m payable in cash. It is expected that
Jonathan Clelland, COO of Aquis, will join the board of OptimX as a
Non-Executive Director in due course. OptimX is a new venture and so has not
yet generated any profits or losses.
3. Revenue
An analysis of the Group's revenue is as follows:
6 months ended 30/06/2023 Year ended 31/12/2022 6 months ended 30/06/2022
£'000 £'000 £'000
Exchange Fees 6,154 10,869 5,387
Licence Fees 801 5,035 662
Issuer Fees 547 1,023 424
Data Vendor Fees 1,840 3,003 1,376
9,342 19,930 7,849
AQUIS EXCHANGE PLC
NOTES 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 31/12/2021 1,478
Expected credit loss reversal for the period (425)
As at 30/06/2022 1,053
Expected credit loss charge for the period 293
As at 31/12/2022 1,346
Expected credit loss reversal for the period (331)
As at 30/06/2023 1,015
The expected credit loss on trade receivables has been calculated in
accordance with IFRS 9:
£'000
As at 31/12/2021 46
Expected credit loss reversal for the period 27
As at 30/06/2022 73
Expected credit loss charge for the period (14)
As at 31/12/2022 59
Expected credit loss reversal for the period -
As at 30/06/2023 59
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
5. Investment income
6 months ended 30/06/2023 Year ended 31/12/2022 6 months ended 30/06/2022
£'000 £'000 £'000
Interest income on bank deposits 169 29 4
6. Earnings per share
6 months ended 30/06/2023 Year ended 31/12/2022 6 months ended 30/06/2022
Number of Shares ('000)
Weighted average number of ordinary shares for basic earnings per share 27,510 27,509 27,509
Weighted average number of ordinary shares for diluted earnings per share 28,796 28,425 28,431
Earnings (£'000)
Profit for the period from continued operations 1,046 4,684 699
Basic and diluted earnings per share (pence)
Basic earnings per ordinary share 3.8 17.0 2.5
Diluted earnings per ordinary share 3.6 16.5 2.5
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
7. Intangible assets
Other Intangibles
Group Developed Trading Platforms
Goodwill
£'000 £'000
£'000
Cost
As at 31/12/2021 3,011 37 83
Additions 282 - -
As at 30/06/2022 3,293 37 83
Additions 324 172 -
As at 31/12/2022 3,617 209 83
Additions 468 41 -
As at 30/06/2023 4,085 250 83
Accumulated amortisation and impairment
As at 31/12/2021 2,286 8 -
Charge for the period 258 6 -
As at 30/06/2022 2,544 14 -
Charge for the period 228 8 -
As at 31/12/2022 2,772 22 -
Charge for the period 268 20 -
As at 30/06/2023 3,040 42 -
Carrying amount
As at 31/12/2021 725 29 83
As at 30/06/2022 749 23 83
As at 31/12/2022 845 187 83
As at 30/06/2023 1,045 208 83
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
8. Property, plant and equipment
Fixtures, fittings and equipment Computer Equipment Right of Use Asset Total
£'000 £'000 £'000 £'000
Cost
As at 31/12/2021 324 2,389 4,239 6,952
Additions & disposals 168 312 - 480
As at 30/06/2022 492 2,701 4,239 7,432
Additions & disposals - 290 - 290
As at 31/12/2022 492 2,991 4,239 7,722
Additions & disposals - 44 13 57
As at 30/06/2023 492 3,035 4,252 7,779
Accumulated depreciation and impairment
As at 31/12/2021 230 2,075 501 2,806
Charge for the period 38 152 173 363
As at 30/06/2022 268 2,227 674 3,169
Charge for the period 27 146 224 397
As at 31/12/2022 295 2,373 898 3,566
Charge for the period 30 160 194 384
As at 30/06/2023 325 2,533 1092 3,950
Carrying amount
As at 31/12/2021 94 314 3,738 4,146
As at 30/06/2022 224 474 3,565 4,263
As at 31/12/2022 197 618 3,341 4,156
As at 30/06/2023 167 502 3,160 3,829
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
9. Trade and other receivables
Current
As at 30/06/2023 As at 31/12/2022 As at 30/06/2022
£'000 £'000 £'000
Trade receivables net of impairment 4,042 3,421 2,096
Prepayments 810 636 683
Other receivables 129 78 7
4,981 4,135 2,786
Non-Current
As at 30/06/2023 As at 31/12/2022 As at 30/06/2022
£'000 £'000 £'000
Trade receivables net of impairment 5,588 5,010 4,079
Other receivables 339 342 635
5,927 5,352 4,714
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 30/06/2023 As at 31/12/2022 As at 30/06/2022
£'000 £'000 £'000
Gross trade receivables 10,704 9,837 7,319
Expected credit losses on contract assets (1,015) (1,347) (1,055)
Provisions against trade receivables (59) (59) (73)
Trade receivables net of impairment 9,630 8,431 6,175
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 initially 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 30/06/2023 As at 31/12/2022 As at 30/06/2022
£'000 £'000 £'000
Deferred tax asset 1,594 1,594 1,292
11. Income tax
The income tax charge/(credit) can be reconciled to the result per the
Statement of Comprehensive Income as follows:
6 months to 30/06/2023 Year ended 31/12/2022 6 months to 30/06/2022
£'000 £'000 £'000
Current tax
UK Corporation tax charge - - -
Overseas tax charges on foreign operations 99 144 -
Total tax charge 99 144 -
Deferred tax
Origination and reversal of timing differences - (229) -
Effect of changes in tax rates - (72) -
Total deferred tax (credit) - (301) -
6 months to 30/06/2023 Year ended 31/12/2022 6 months to 30/06/2022
£'000 £'000 £'000
Profit before tax 1,145 4,527 699
Expected tax charge based on a corporation tax charge of 19% 195 860 100
Expected tax charge based on effective overseas rates of 25% 99 177 61
Fixed asset differences (182) (40) (111)
Expenses not deductible for tax purposes 87 109 53
Other differences (7) (89) (46)
Remeasurement of deferred tax for changes in tax rates (93) (72) (57)
Movement in deferred tax not recognised - (1,069) -
Movement in deferred tax not recognised at overseas rates - (33) -
Tax charge/(credit) for the period 99 (157) (1,030)
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
12. Trade and other payables
As at 30/06/2023 As at 31/12/2022 As at 30/06/2022
Trade payables 244 510 499
Accruals 1,035 1,509 1,076
Social security and other taxation 663 221 755
Deferred revenue 1,959 1,358 1,604
Short term lease liabilities 527 523 434
Overseas corporation tax payable 23 144 -
Derivatives 40 - -
Other payables 4 3 85
4,495 4,268 4,453
In January 2023 forward contracts were taken by the Company in order to
economically hedge against foreign exchange movements in contract asset
balances denominated in US Dollars (see note 9). These derivatives are
remeasured at each reporting sheet date with the movement recognised in Profit
and Loss. The year to date loss on these items is £40k.
In January 2023 forward contracts were taken by the Company in order to
economically hedge against foreign exchange movements in contract asset
balances denominated in US Dollars (see note 9). These derivatives are
remeasured at each reporting sheet date with the movement recognised in Profit
and Loss. The year to date loss on these items is £40k.
13. Called up share capital
As at 30/06/2023 As at 31/12/2022 As at 30/06/2022
£'000 £'000 £'000
Ordinary share capital
Issued and fully paid
27,149,559 Ordinary shares of 10p each 2,751 2,751 2,751
Issue of new shares following exercise of 3,999 EMI share options - - -
Issue of new shares following exercise of 7,333 EMI share options 1 - -
Ordinary share capital 2,752 2,751 2,751
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
14. Share premium account
As at 30/06/2023 As at 31/12/2022 As at 30/06/2022
£'000 £'000 £'000
Share premium
At beginning of year 11,785 11,771 11,771
Issue of new shares following exercise of 3,999 EMI share options - 14 9
Issue of new shares following exercise of 7,333 EMI share options 25 - -
Share premium 11,810 11,785 11,780
15. Other Reserves
£'000
As at 31/12/2021 1,118
Share-based payment expense for the 6-month period ended 30/06/2022 742
As at 30/06/2022 1,860
Share-based payment expense for the 6-month period ended 31/12/2022 (47)
As at 31/12/2022 1,813
Share-based payment expense for the 6-month period ended 30/06/2023 507
As at 30/06/2023 2,320
The reserves relating to share-based payments reflects the estimated value of
the approved employee share option schemes, which include the EMI, CSOP, PPO
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)
16. Retained earnings
£'000
As at 31/12/2021 5,633
Profit for the 6-month period ended 30/06/2022 699
As at 30/06/2022 6,332
Profit for the 6-month period ended 31/12/2022 3,985
As at 31/12/2022 10,317
Profit for the 6-month period ended 30/06/2023 1,046
As at 30/06/2023 11,363
17. Treasury shares
Treasury shares are purchased by the Trusts under the Employee Share Plans.
The Trusts are consolidated within the Group financial statements and the
value of the shares held at the balance sheet date is shown below.
As at 30/06/2023 As at 31/12/2022 As at 30/06/2022
£'000 £'000 £'000
At beginning of period 3,350 1,527 1,527
Purchase of treasury shares 448 1,823 1,474
Treasury shares at close of period 3,798 3,350 3,001
18. 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 30/06/2023 Year ended 31/12/2022 6 months ended 30/06/2022
£'000 £'000 £'000
At the beginning of the year/period 64 (159) (117)
Foreign exchange differences on translation of foreign operations recognised (101) 223 (42)
in OCI
At the end of the year/period (37) 64 (159)
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
19. IFRS 16 Leases
The impact on the Group's assets and liabilities, and the related effects on
profit and loss, of the Group's leasing activities
(the Group as a lessee) are detailed below.
Right of Use Asset
Property
£'000
Carrying amount at 1 January 2022 3,738
Depreciation for the period (173)
Carrying amount at 30 June 2022 3,565
Depreciation for the period (225)
Carrying amount at 31 December 2022 3,340
Remeasurement of lease 13
Depreciation for the period (194)
Carrying amount at 30 June 2023 3,159
Rent deposit asset
Rent deposit asset
£'000
Carrying amount at 1 January 2022 616
Finance income on rent deposit asset for the period 11
Carrying amount at 30 June 2022 627
Finance income on rent deposit asset for the period 4
Recovery of rent deposit (274)
Carrying amount at 31 December 2022 357
Remeasurement of lease (12)
Finance income on rent deposit asset for the period 5
Carrying amount at 30 June 2023 350
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
Lease liability
Lease liability
£'000
Carrying amount at 1 January 2022 3,630
Finance expense on lease liability for the period 33
Lease payments made during the period (39)
Carrying amount at 30 June 2022 3,629
Finance expense on lease liability for the period 35
Lease payments made during the period (262)
Carrying amount at 31 December 2022 3,397
Finance expense on lease liability for the period 54
Lease payments made during the period (257)
Carrying amount at 30 June 2023 3,194
Of which are:
Current 527
Non-current 2,667
3,194
Net finance expense on leases
6months ended 30/06/2023 Year ended 31/12/2022 6 months ended 30/06/2022
£'000 £'000 £'000
Finance expense on lease liability 54 68 33
Finance income on rent deposit asset (5) (15) (11)
Net finance expense relating to leases 49 53 22
The finance income and finance expense arising from the Group's 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 30/06/2023 Year ended 31/12/2022 6 months ended 30/06/2022
£'000 £'000 £'000
Depreciation expense on right-of-use assets (194) (397) (173)
Finance expense on lease liability (54) (68) (33)
Finance income on rent deposit asset 5 15 11
Net impact of leases on profit or loss (243) (450) (195)
The total cash outflow for leases amounted to £217k in the 6 months to 30
June 2023.
Net finance expense on leases
6 months ended 30/06/2023 Year ended 31/12/2022 6 months ended 30/06/2022
£'000 £'000 £'000
Finance expense on lease liability 54 68 33
Finance income on rent deposit asset (5) (15) (11)
Net finance expense relating to leases 49 53 22
The finance income and finance expense arising from the Group's 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 30/06/2023 Year ended 31/12/2022 6 months ended 30/06/2022
£'000 £'000 £'000
Depreciation expense on right-of-use assets (194) (397) (173)
Finance expense on lease liability (54) (68) (33)
Finance income on rent deposit asset 5 15 11
Net impact of leases on profit or loss (243) (450) (195)
The total cash outflow for leases amounted to £217k in the 6 months to 30
June 2023.
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
20. Cash generated from operations
6 months ended 30/06/2023 Year ended 31/12/2022 6 months ended 30/06/2022
£'000 £'000 £'000
Profit after tax 1,046 4,684 699
Adjustments for:
Income tax 99 144 -
Deferred tax - (301) -
Foreign exchange (gains)/losses (13) 116 -
Investment revenue (169) (29) (4)
Amortisation and impairment of intangible assets 288 499 264
Depreciation of property, plant and equipment 384 761 363
Equity settled share-based payment expense 507 820 289
Other (gains)/losses (69) 58 (4)
Movement in working capital:
Increase in trade and other receivables (1,199) (1,594) (986)
Increase in trade and other payables 227 (1,196) 461
Cash generated by operations 1,101 3,962 1,082
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR SESFASEDSEDURecent news on Aquis Exchange
See all newsREG - Aquis Exchange PLC - Result of AGM and Confirmation of Board Change
AnnouncementREG - Aquis Exchange PLC - Publication of Annual Report and Notice of AGM
AnnouncementREG - Aquis Exchange PLC - Results for the year ended 31 December 2023
AnnouncementRCS - Aquis Exchange PLC - Contract with the Central Bank of Colombia
AnnouncementRCS - Aquis Exchange PLC - Aquis to Establish New Real Assets Market Segment
Announcement