REG - Celebrus Tech - Final Results for the year ended 31 March 2024
09/07/2024 07:00
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RNS Number : 5776V Celebrus Technologies PLC 09 July 2024
09 July 2024
Celebrus Technologies plc
Final Results for the year ended 31 March 2024
Strong second half and further ARR progress
Celebrus Technologies plc (AIM: CLBS, "the Group", "Celebrus"), the data
solutions provider, announces its final results for the year ended 31 March
2024.
Financial Highlights
· Annual recurring revenue* (ARR) up 20.9% to £20.2 million (FY23:
£16.7 million), and increased as percentage of Software revenue to 92% (FY23:
89%)
· Total Revenue up 52.3% to £32.6 million (FY23: £21.4 million)
· Software Revenue (excluding third-party hardware) up 14.7% to £22.0
million (FY23: £19.1 million)
· Gross profit margin of 52.7% (FY23: 60.2%) due to a greater
proportion of lower margin third party hardware revenue. Software revenue
gross margin of 72.2% (FY23: 68.8%).
· Adjusted profit before tax** of £6.0 million (FY23: £3.8 million),
and statutory profit before tax of £5.6 million (FY23: £2.4 million)
· Adjusted diluted EPS of 10.71p (FY23: 7.74p) and diluted basic EPS of
9.87p (FY23: 5.18p)
· Proposed final dividend of 2.23p (FY23: 2.15p), making a total
dividend for the year of 3.15p (FY23: 3.03p), an increase of 4.0%.
· Year-end cash position of £30.7 million (FY23: £17.2 million), and
normalised cash balance (excluding certain creditor payments due) of £24.7m.
which is expected to normalize during H1 2025.
Operational Highlights
· Ongoing investment into innovation of the Celebrus platform with new
features such as Celebrus Digital Analytics, Bot Detection Machine Learning,
and a variety of new digital identity enhancements.
· Key wins in the year included new logos in Healthcare (US), Finance,
and Retail combined with some strong upsells of our existing customer base
across the globe.
· Continued investment into Sales and Marketing, which has included
shifting the Sales team members to focus on specific verticals in their
respective markets and the continued emphasis on Customer Success and
onboarding.
· Several new partnerships have been established in both the technology
and solution integrator categories to further our value proposition in the
market.
· Further investments into people development and employee satisfaction
which we continue to monitor via our annual employee surveys.
· Completion of the refocus of the Group to a software sales business,
which is now ready for the next stage of growth, having completed the planned
changes across the business to get us to this point.
Current trading and Outlook
· The year has started with a growing pipeline and a good proportion of
revenue for the financial year already contracted.
· Continued investment into sales and marketing to drive organic growth
whilst also considering acquisition opportunities.
· Trading to date is in line with expectations for FY25.
* ARR (Annual Recurring Revenue) is the amount of revenue currently contracted
at a point in time that is expected to recur within the next twelve months.
** Adjusted profit before tax is calculated before amortisation of
intangibles, restructuring costs, acquisition costs, foreign exchange
gains/losses and share based payment charges.
Bill Bruno, Chief Executive Officer commented:
"I'm very pleased that this year has been one of tremendous progress
operationally, commercially and strategically. We have completed the refocus
of the group to being a software sales business while delivering a strong
financial performance. We are now ready for the next stage of growth."
Inside Information: This announcement contains inside information for the
purposes of article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms
part of domestic law by virtue of the European Union (Withdrawal) Act 2018.
Upon the publication of this announcement via Regulatory Information Service,
this inside information is now considered to be in the public domain.
Enquiries
Celebrus Technologies plc +44 (0) 1932 893333
Bill Bruno, Chief Executive Officer investors@celebrus.com (mailto:investors@celebrus.com)
Ash Mehta, Chief Financial Officer
Cavendish (Nominated Adviser & Joint Broker) +44 (0) 20 7220 0500
Julian Blunt / Edward Whiley, Corporate Finance
Tim Redfern, Corporate Broking
Canaccord Genuity (Joint Broker) +44 (0) 20 7523 8000
Simon Bridges / Andrew Potts
About Celebrus Technologies plc
As a disruptive data technology platform, Celebrus is focused on improving the
relationships between brands and consumers via better data. Celebrus redefines
what digital identity verification means to power both next-level marketing
and fraud prevention use cases. Deployed across 30+ countries throughout the
financial services, healthcare, retail, travel, and telecommunications
sectors, Celebrus automatically captures, contextualizes, and activates
consumer behavioral data in live-time across all digital channels. Through the
addition of behavioral biometrics and AI, Celebrus empowers brands to detect
and prevent fraud before it occurs. To ensure that brands can begin to improve
those relationships quickly, Celebrus Cloud activates the Celebrus platform
efficiently for brands in a single-tenant, private cloud capacity.
The Group has offices in the UK, USA, and India with key talent in all markets
to drive the growth of the business. Celebrus is fully compliant with all
major data privacy regulations and the Group is accredited to ISO27001:
Information Security Management.
For more information, please see www.celebrus.com (http://www.celebrus.com) .
Chairman's statement
This year has again been one of continued investment into supporting our
growth and scalability, whilst at the same time increasing our Annual Recuring
Revenue and profitability. This has been achieved despite continued
uncertainty in the economy and financial markets.
We have increased the size of the customer-facing teams, to support ongoing
growth from new customers and from deepening relationships with existing
customers. Our newly-formed Customer Success team has been instrumental in
ensuring high customer satisfaction whilst also identifying opportunities for
customers to utilise additional features of the Celebrus platform. This led to
several very significant customer upsells and contract extensions during the
year. These successes have built upon the impact of having a direct sales team
which enables us to have a better understanding of each new customer and
thereby service them more effectively.
We continue to grow our customer base well beyond banks and financial
services, with customer additions including an online gift experience retailer
and a US-based healthcare group. This demonstrates the broad applicability and
versatility of the platform, and our improved marketing messages being
tailored and evolved to describe the value proposition clearly for specific
verticals.
In product development, the successful rollout of Celebrus Cloud means that
this is now the primary mode of deployment offered. The success of Celebrus
Cloud results in more efficient and effective onboarding of new customers.
In addition, it allows customers immediate access to new functionality when it
is added during our regular six-monthly update release cycle.
Our financial metrics in terms of ARR and adjusted profit before tax have
improved, and our financial strength is bolstered by a healthy cash balance
and no debt.
The Group continues to invest in our people, and this was manifested by the
move into new state-of-the-art offices in both India and the UK during the
year. This underlines the efforts into making Celebrus a great place to work
for our people, not just in terms of the physical environment but also via the
flexibility and benefits package we have developed, to ensure a
market-competitive position for the Group. These efforts towards increasing
employee satisfaction, validated in our annual employee survey, also help to
ensure we can effectively scale the business by recruiting and retaining high
calibre talent. I'd like to personally thank our employees for their excellent
work during the year.
Finally, having taken on the role of Chairman last December, I'd like to thank
my predecessor, Peter Simmonds, for his nine years of contribution to the
Group. During that time the Celebrus platform has gone from being a new
acquisition to becoming the core of the Group's growth. He leaves the business
in a strong position, and we wish him well for the future.
Outlook
The outlook continues to be positive with a pipeline of excellent
opportunities, and a business which is scalable and efficient. The Group has
a healthy cash balance to fund necessary investments into growth, both organic
and by acquisition if appropriate, and I'm delighted to report that the Board
is highly confident in the Group's strategy to create significant shareholder
value in the coming years.
CEO Statement
I'd like to begin this year's statement by thanking our team, our customers,
and our partners for contributing to what was a successful year for the
business. The past couple of years have been heavily focused on transforming
our business into a software company, and developing the Celebrus product that
was acquired in 2015 into a platform containing a broad range of apps for a
variety of uses. A considerable amount of effort has gone into our systems,
processes, people, and go-to-market strategies to ensure we can grow the
business efficiently and effectively while driving shareholder value forward.
We put a stamp on those efforts with the name change to Celebrus Technologies
plc. We believe that the business is both easier to understand and easier to
buy from. We will also continue to simplify our approach, our message, and
take stakeholder feedback into account as we continue to grow.
Our mission statement is quite simple: to improve the relationships between
brands and consumers via better data. What does "better data" mean to us? It's
data that is complete without having to build a bunch of custom code and
tagging to try and capture it. It's data that solves for digital identity and
can persist that identity in a true patented fashion across your channels.
It's a profile capability that ensures you can keep a record of all
interactions and finally solve for a single customer view that is so elusive,
across all channels and devices. It's data that is available immediately, in
the format you need it, so that you can focus on using the data instead of
worrying about capturing it. It's data that provides the right detail to
protect consumer money from rampant scams across the globe. It's data that
complies with all local regulations and provides comfort that you can use the
data without violating consumer trust.
We have continued to innovate our Celebrus platform with two major releases
per year, and our software is now deployed in over 32 different countries
around the world. In the past year, we have significantly improved our
Business Intelligence features with the launch of Celebrus Digital Analytics
(CDA) and continued to differentiate our Digital Identity and Customer Profile
capabilities. Today, the platform powers over 400 use cases in Marketing,
Customer Experience, Fraud, and Artificial Intelligence via better data. It's
best to think of the platform as the core operating system and we are
packaging up solutions, or applications, that sit on top of the core platform
to deliver value to our customers. Those solutions are sold with Celebrus
Cloud, our single-tenant, private-cloud offering as the primary deployment
model.
Strategically, as we continue to evaluate our product roadmap, we believe this
is an opportune time to perform some discovery in the market for a potential
IP acquisition that could add some valuable technology and solutions to our
existing Celebrus Platform. We have a healthy cash balance, no debt, and
strong alignment at the Board level on what we are seeking to acquire. This
will not slow down our own roadmap and investments in the platform, but it is
a key part of our current strategy.
In the market, we are selling solutions for specific pain points to brands to
continue to optimise and shorten our sales cycles year on year. In the past
couple of years, we have established a direct Sales team, and we also deployed
a Customer Success team to support our land and expand approach. These changes
were a must have for our business as we looked to drive strong, stable growth
in software revenues and ARR year in and year out with our customer-first
mentality. In the second half of the fiscal year, we took another step forward
in our strategy and aligned the team with vertical expertise focused on
Financial Services, Insurance, Healthcare (US), Retail and Travel &
Hospitality . We also continue to evolve our Pre-Sales team to strategically
support the growth of our existing customer revenues and the drive for new
logos in the market.
Our investments in Sales and Customer Success are returning positive results,
which is promising as we continue to learn and evolve. Key wins in the year
included new logos in Healthcare (US), Financial Services, and Retail. We also
successfully secured many upsells across our customer base, which we attribute
to our new engagement models and a strong focus on selling the value of the
Celebrus platform for expanded use cases.
While we have invested in our direct sales, we have also continued to launch
several partner activations with organisations including Merkle, Salesforce,
Braze, Snowflake and Databricks to name a few. Partners remain a key part of
our strategy, but how we engage with partners has evolved significantly over
the past couple of years. We approach the market together, we sell together,
and as a result we ensure that the Celebrus platform is being positioned
correctly every step of the way. Once we win a customer's partnership, we stay
engaged alongside our partner to ensure that the customer is happy and growing
in their use of the Celebrus platform. This also then allows the Partners to
focus more on building value around the Celebrus platform since we assist them
during the upsell process in selling it effectively, which ultimately helps us
to scale as we grow.
From a people perspective, we simply would not be where we are today on our
journey without our employees across the world. We have continued to find ways
to invest in the professional development of our employees, and to support
them both in their business lives and their personal lives. Moreover, in the
second half of the financial year, with good visibility on revenues, we chose
to add some key talent in commercial and business development roles to prepare
for the next phase of our business strategy execution, and help ensure that
future growth targets can be met.
With a backdrop of increasing risks globally, we continue to invest and focus
on both cyber security and measurement. We have further improved our
monitoring, processes and technology investments to ensure that we are doing
everything we can to protect our platform, our customers, and their consumers.
We are also ensuring that we can make data-driven decisions across the entire
business to optimise our investments to deliver the best return to our
shareholders.
Strategically, we are now entering a pivotal year for the business. Having had
a successful FY24 and built the proper foundation for the business to scale
with significant investment into systems and people, we are very excited about
the trajectory we are on and the progress we are making. We will continue to
focus on growing our software revenues, driven by ARR as a primary metric,
through our continued investment into sales, marketing, and product
development while ensuring we can still generate healthy profits and cash for
future investment.
We have started the new financial year with a growing pipeline, strong
backlog, good momentum, revenue already committed to the current financial
year, and solid growth in ARR. We are confident in our ability to deliver in
this new financial year and continue to execute on our vision for this
business globally.
Chief Financial Officer's review
Overview
The ongoing investment into the business resulted in an increased cost base
compared to the previous year. Despite these increased costs, the Group
managed to deliver healthy profits, and we ended the year with a strong
balance sheet and a good cash balance to fund future growth.
Income statement
Group Revenues for the year were £32.6 million (FY23: £21.4 million).
Software Revenues, comprising licence revenues, managed services, support and
maintenance and implementation services, were up 14.7% to £22.0 million
(FY23: £19.1 million). Third-party revenues, which are highly variable year
to year, and comprised mostly of low margin revenue from the sale of hardware
as part of certain customers' installations were £10.7 million (FY23: £2.2
million). The Group regards Software Revenues as being a more useful and
consistent indicator of the growth of the business.
The gross margin was 52.7% (FY23: 60.2%) due to a higher proportion of low
margin hardware revenues. Excluding hardware revenues and cost of sales, the
underlying Software gross margin was 72.2% (FY23: 68.8%).
Operating expenses rose during the year to £12.2 million (FY23: £10.8
million) due to ongoing investment into sales and marketing as well as
customer delivery.
The Group's cash balances were well managed and generated £0.6 million of
interest income.
The adjusted profit before tax was £6.0 million (FY23: £3.8 million), whilst
the unadjusted profit before tax was £5.6 million (FY23: £2.4 million). The
difference between the adjusted and unadjusted figures is due to a charge for
share-based payments arising from share option grants during the year of £0.8
million (FY23: £0.9 million), amortisation of intangible assets of £0.2
million (FY23: £0.2 million) and partially offset by foreign exchange gains
of £0.6 million (FY23: £0.3 million).
Annual Recurring Revenue (ARR) grew 20.9% to £20.2 million (FY23: £16.7
million) and accounted for 92% (FY23: 89%) of Software Revenues for the year.
The average number of employees increased slightly during the year to 154
(FY23: 151).
Taxation
The group tax charge was higher at an effective rate of 27.5% (FY23: 11.5%).
This was driven by a higher tax rate in the United Kingdom of 25% (FY23: 19%),
lower eligibility and super deduction rates for research and development
costs, and losses in the United States which will be carried forward to reduce
the US and Group tax charge in future years.
Financial position
The balance sheet remains strong with no debt and a cash balance at the
year-end of £30.7 million (FY23: £17.2 million). The year end cash balance
is unusually high due to the timing of working capital movements. The Group
had amounts of approximately £6.0 million due for payment in the first
quarter of FY25 relating to the purchase of hardware for customers and other
non-repeating payments, meaning that the "normalised" cash balance at 31 March
2024 was in the region of £24.7 million.
The Goodwill balance of £9.4 million (FY23: £9.4 million) is comprised of
goodwill from the acquisition of Celebrus in 2015, and the acquisition of
Prickly Cactus during 2021. The Other intangible assets balance of £0.9
million (FY23: £0.8 million) is comprised of purchased IPR, trade names and
capitalised development costs. The Group expenses the majority of its R&D
costs and capitalised just £0.3 million in the year (FY23: £0.2 million)
which met the criteria of development costs under IAS38. The amortisation
related to non- acquisition related goodwill amounted to £0.2 million (FY23:
£0.3 million).
Property, plant and equipment increased to £1.7 million (FY23: £0.6
million). Whilst the capital expenditure of the Group is generally low, during
the year the Group entered into new leases on two office properties in the UK
and India. An investment of £0.6 million was made into leasehold improvements
relating to these two new leasehold offices. The right-of-use assets created
totaled £1.0 million with a further £0.4 million comprised of fixtures and
fittings relating to the new offices. The freehold property remains as an
asset held for sale at £3.0 million (FY23: £3.0 million) and the Group is
currently in negotiations for its sale.
Trade debtors were £5.9 million (FY23: £4.9 million) and of that amount,
£5.4 million had been received by the end of June. By the nature of the
Group's customer base being large typically multinational businesses, credit
risk is not a major risk for the Group and bad debt write-offs during the year
were nil (FY23: nil).
Trade creditors increased to £2.0 million (FY23: £0.6 million), whilst
accruals increased to £5.9 million (FY23: £1.2 million), relating to the
hardware inventory held at the year end which shipped to the customer in early
April. The Group seeks to pay all suppliers within terms and the supplier
payment days at the year-end were 26 days (FY23: 14 days). Deferred revenue
arising from billings made to customers ahead of revenue being recognised
increased to £17.8 million (FY23: £9.4 million) due to a number of customer
renewals and extensions which were billed during the year.
Cash flow and funds
The Group generated net cash from operating activities of £16.6 million
(FY23: net cash generated of £13.7 million) with £6.1 million coming from
operating cash flows, and £10.0 million coming from positive working capital
movements largely due to customers paying in advance for their goods and
services.
Financing activities in the year were £2.4 million (FY23: £7.8 million)
comprised mainly of normal dividends paid of £1.2 million (FY23: £1.2
million), and a net purchase of own shares of £1.0 million (FY23: £1.5
million). The share purchase program is a limited program intended to negate
the dilutive impact of annual share option grants. No special dividend was
paid in the year (FY23: £5.0 million).
Investing activities resulted in an outflow of £0.2 million (FY23: outflow of
£0.1 million). With higher interest rates and a healthy cash balance, net
interest income was £590,000 (FY23: £337,000), set off principally against
capitalisation of development costs of £315,000 (FY23: £247,000).
The Group continues to be debt free and maintains a robust financial position.
The healthy cash balance is important not just to enable the Group to invest
in future growth as appropriate, but also to counter any concerns about vendor
risk from our customers, who are typically large multinational businesses.
Annual Recurring Revenue
We define ARR as the annual amount of recurring revenue contracted with a
customer, at a given point in time. As a recognised driver of shareholder
value in software businesses we use this as one of our primary metrics.
Group ARR grew by £3.5 million to £20.2 million (FY23: £16.7 million)
during the year. The current ARR is comprised of Licences of £12.6 million
(FY23: £9.1 million) and Celebrus Cloud, Support and Maintenance of £7.6
million (FY23: £7.6 million). Of the growth of £3.5 million during the
year, £3.8 million is from net contract wins with a £0.3 million loss
arising from exchange rate movements due to a large proportion of Group
contracts being in US Dollars.
Earnings per share
Basic EPS for the year was 10.15p (FY23: 5.29p) and diluted basic EPS was
9.87p (FY23: 5.18p). The basic figure has been calculated using the weighted
average number of shares in issue being 39,781,184 (FY23: 40,004,526) and the
diluted figure using 40,899,072 (FY23: 40,830,043).
Adjusted basic EPS was 11.01p (FY23: 7.90p) and adjusted diluted EPS was
10.71p (FY23: 7.74p) following adjustments for amortisation, share-based
payments, exceptional items, foreign exchange expenses and tax on these
adjustments.
Dividend
During the year, the Company paid ordinary dividends of £1.2 million (FY23:
£1.2 million). No special dividend was paid during the year (FY23: 12.5p per
share).
The Board is today proposing a final dividend, subject to shareholder approval
at the 2024 AGM, of 2.23p per share (FY23: 2.15p), which along with the
interim dividend of 0.92p per share (FY23: 0.88p) paid in January 2024 brings
the full year dividend to 3.15p per share (FY23: 3.03p), an increase of 4.0%.
The final dividend is expected to be paid on 16 August 2024 to shareholders on
the register as at the close of business on 19 July 2024.
Purchase of own shares
During the year, the Company again undertook a limited share buyback program
to acquire Ordinary shares of 2p in the capital of the Company. The shares are
held for the purpose of satisfying future obligations in relation to its
employees' or other share schemes, thereby mitigating dilution for existing
investors.
At 31 March 2024, 520,817 shares had been acquired at an average price of
200.3p and following the issue of 193,087 treasury shares to satisfy share
option exercise this brought the number of shares held in Treasury to 936,495
(FY23: 608,765).
Equity
At the year end, the Group had £29.5 million (FY23: £27.3 million)
attributable to the shareholders of the Company. The increase in the year was
principally made up of retained earnings in the year of £4.0 million (FY23:
£2.1 million) set off against dividends paid during the year of £1.2 million
(FY23: £6.2 million), share buybacks of £1.0 million (FY23: £1.5 million)
with the balance of £0.7 million (FY23: £0.9 million) attributable to share
-based payments.
Foreign currency impact and change in reporting currency
The Group's tightened policies and management of foreign currency risk
resulted in a foreign currency gain of £0.6 million (FY23: £0.3 million).
The Group has historically reported its results in Sterling. With the majority
of the Group's revenues in US Dollars (for many global customers as well as US
customers), and expected future growth also expected to be predominantly in US
Dollars, this would give rise to increased foreign exchange risk needing to be
managed through hedging contracts. Therefore, the Board has decided to convert
to reporting results in US Dollars from the year commencing 1 April 2024. This
will reduce the risk of foreign exchange losses and also better reflect the
focus of the Group on large global customers who typically prefer to contract
in US Dollars.
There will be no change in the Group's dividend policy, and dividends will
continue to be declared in GBP. Following the change in the Group's
presentational currency with effect from 1 April 2024, the Group's interim
results for the six-month period ended 30 September 2024, and all subsequent
financial information, will be prepared using US dollars as the presentational
currency. Comparative information will also be provided in US dollars as
required by the relevant Accounting Standards.
Consolidated income statement for the year ended 31 March 2024
Note 2024 2023
£'000 £'000
Continuing operations
Revenue 3 32,639 21,369
Cost of sales (15,432) (8,497)
Gross Profit 17,207 12,872
Administration expenses (12,218) (10,833)
Other operating income - 15
Profit from operations 4,989 2,054
Finance income32.639 607 373
Financing costs (17) (36)
Profit before tax 4 5,579 2,391
Tax (1,541) (274)
Attributable to equity holders of the parent 4,038 2,117
Earnings per share from continuing operations attributable to the equity
holders of the parent
Statutory
Basic 5 10.15 5.29p
Diluted 5 9.87p 5.18p
Consolidated statement of comprehensive income for the year ended 31 March
2024
2024 2023
£'000 £'000
Attributable to equity holders of the parent 4,038 2,117
Other comprehensive income:
Items that will not be reclassified to profit or loss
Gains on property revaluation - (300)
Exchange differences on translation of foreign operations (317) 204
Total comprehensive income for the year attributable
to equity holders of the parent 3,721 2,021
Consolidated statement of changes in equity attributable to
Equity Holders of the Parent for the year ended 31 March 2024
Share capital Share premium Merger reserve Revaluation reserve Treasury shares Retained earnings Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 April 2022 808 3,365 5,981 1,240 (542) 20,034 30,886
Dividends paid - - - - - (6,194) (6,194)
Purchase of own shares - - - - (1,488) - (1,488)
Settlement of share-based payments - - 250 - 694 (679) 265
Share-based payment charge - - - - - 856 856
Transactions with equity holders - - 250 - (794) (6,017) (6,561)
Profit for the year - - - - - 2,117 2,117
Other comprehensive income - - - (300) - 204 (96)
Total comprehensive income - - - (300) - 2,321 2.021
Balance at 1 April 2023 809 3,365 6,281 1,010 (1,464) 17,344 27,345
Dividends paid - - - - - (1,221) (1,221)
Purchase of own shares - - - - (1,042) - (1,042)
Settlement of share-based payments - - - - 452 (450) 2
Share-based payment charge - - - - - 699 699
Transactions with equity holders - - - - (590) (972) (1,562)
Profit for the year - - - - - 4,038 4,038
Other comprehensive income - - - - - (317) (317)
Total comprehensive income - - - - - 3,721 3,721
Balance at 31 March 2024 809 3,365 6,281 1,010 (2,054) 20,093 29,504
Consolidated statement of financial position as at 31 March 2024
Note 2024 2023
£'000 £'000
Non-current assets
Goodwill 9,446 9,446
Other intangible assets 977 806
Property, plant and equipment 1,662 607
Trade and other receivables 7 233 942
Deferred tax assets 240 212
12,558 12,013
Current assets
Inventories 3,691 -
Trade and other receivables 7 8,682 7,561
Tax receivables 91 15
Cash and cash equivalents 30,720 17,155
43,184 24,731
Assets in disposal groups classified as held for sale 3,000 3,000
Total assets 58,742 39,744
Current liabilities
Trade and other payables 8 (8,531) (2,219)
Tax liabilities (1,483) (8)
Deferred income (17,637) (9,383)
Lease obligations (201) (73)
(27,852) (11,683)
Non-current liabilities
Lease obligations (875) (148)
Deferred income (79) (173)
Deferred tax liabilities (432) (395)
(1,386) (716)
Total liabilities (29,238) (12,399)
Net assets 29,504 27,345
Equity
Share capital 809 809
Share premium account 3,365 3,365
Merger reserve 6,281 6,281
Revaluation reserve 1,010 1,010
Own shares (2,054) (1,464)
Retained earnings 20,093 17,344
Attributable to equity holders of the parent 29,504 27,345
Consolidated cash flow statement for the year ended 31 March 2024
2024 2023
£'000 £'000
Operating activities
Profit before tax 5,579 2,391
Adjustments for:
Depreciation of property, plant and equipment 292 265
Amortisation of intangible assets 164 346
Finance income (607) (373)
Finance expense 17 36
Share-based payments 699 856
(Gain) / loss on sale of property, plant and equipment (16) 13
Operating cash flows before movements in working capital 6,128 3,534
(Increase) / decrease in receivables (412) 18,882
(Increase) in inventories (3,691) -
Increase / (decrease) in payables 14,084 (9,184)
Cash generated from operations 16,109 13,232
Taxes received - 472
Net cash generated from operating activities 16,109 13,704
Investing activities
Interest received 607 373
Purchase of property, plant and equipment (435) (173)
Purchase of intangible fixed assets (21) (97)
Capitalisation of development costs (315) (247)
Net cash used in investing activities (164) (144)
Financing activities
Dividends paid (1,221) (6,194)
Lease repayments (104) (102)
Interest paid (17) (36)
Purchase of own shares (1,042) (1,488)
Exercise of share options 4 (15)
Net cash used in financing activities (2,380) (7,835)
Net increase in cash and cash equivalents 13,565 5,725
Cash and cash equivalents at start of year 17,155 11,430
Cash and cash equivalents at end of year 30,720 17,155
Notes to the financial statements
1. General information
Celebrus Technologies plc is a public limited company incorporated and
domiciled in England and Wales and quoted on the AIM Market, hence there is no
ultimate controlling party.
2. Significant accounting policies
Basis of preparation
The financial statements have been prepared in accordance with International
Accounting Standards adopted by the Companies Act 2006 applicable to companies
reporting under International Accounting Standards.
The financial statements have been prepared under the historical cost
convention, with the exception of land and buildings which are held at
valuation.
The presentation and functional currency of the financial statements is
British Pounds and amounts are rounded to the nearest thousand pounds.
The financial information contained in this announcement does not constitute
the Group's statutory accounts for the year ended 31 March 2024 but is derived
from those accounts which have been audited and which will be filed with the
Registrar of Companies in due course.
The auditors' report on the Annual Report and Financial Statements for the
year ended 31 March 2024 was unqualified, did not draw attention to any
matters by way of emphasis and did not contain a statement under s498(2) or
s498(3) of the Companies Act 2006.
Going concern
The Group and Company's business activities, together with the factors likely
to affect its future development, performance and position and the risks and
uncertainties have been considered.
The Directors have reviewed stress tests for future cashflows over the 18
months to 30 September 2025 to ensure there are sufficient financial
resources, together with income from existing contracts with a number of
customers, to cover budgeted future cashflows. On this basis, the Directors
have adopted the going concern basis in preparing these accounts.
3. Business and geographical segments
IFRS 8 Operating Segments requires these to be identified on the basis of
internal reports about components of the Group that are regularly reviewed by
the chief operating decision maker to allocate resources to the segments and
assess their performance.
Whilst having three product groups, the Group operates the business as a
single business with no separation into divisions or allocation or people or
assets to a particular division. The management team is responsible for all
three product groups with no individual having responsibility for a particular
product group. This is consistent with the internal reporting for management
purposes. Management does however monitor revenues by revenue type.
Information is presented to the Board on the revenue analysis below:
· Licenses
· Celebrus Cloud Hosting, support and maintenance
· Services
· Third party products
The revenue analysis set out below is consistent with that provided to the
Board of Directors.
2024 2023
£'000 £'000
Licenses 11,983 8,198
Celebrus Cloud Hosting, support and maintenance 7,545 7,771
Services 2,433 3,173
Software revenues 21,961 19,142
Third party products 10,678 2,227
Revenue 32,639 21,369
Major customers (partners) over 10% of revenue
2024 2023
£'000 £'000 £'000 £'000
Customer 1 Customer 2 Customer 1 Customer 2
Licenses 6,180 2,072 2,061 4,444
Celebrus Cloud Hosting, support and maintenance 3,973 694 3,583 1,110
Services 1,010 76 30 -
Software revenues 11,163 2,842 5,674 5,554
Third party products 10,447 - 2,227 -
Revenue 21,610 2,842 7,901 5,554
Geographical information
Group
2024 2023
£'000 £'000
United States of America 25,454 11,055
United Kingdom 4,308 3,800
Rest of Europe 2,569 3,745
Others 308 2,769
32,639 21,369
The geographical revenue analysis is determined by the domicile of the
customer.
4. Adjusted profit before tax
2024 2023
£'000 £'000
£'000 £'000
Profit before tax 5,579 2,391
Amortisation of intangible assets 164 346
Share-based payments 766 856
Net foreign exchange differences (573) (330)
Restructuring costs 98 513
Adjusted profit before tax 6,034 3,776
5 Earnings per share
The calculation of earnings per share is based on profit attributable to
owners of the parent and the weighted average number of Ordinary shares in
issue during the year. The adjusted earnings per share figures have been
calculated based on earnings before adjusted items. These have been presented
to provide shareholders with an additional measure of the Group's year-on-year
performance.
For diluted earnings per share, the weighted average number of Ordinary shares
in issue is adjusted to assume conversion of all dilutive potential Ordinary
shares arising from share options granted to employees where the exercise
price is less than the market price of the Company's Ordinary shares at the
year end.
Details of the adjusted earnings per share are set out below:
2024 2023
£'000 £'000
Profit attributable to owners of the parent 4,038 2,117
Amortisation of intangible assets 164 346
Share-based payment 766 856
Net foreign exchange differences (573) (330)
Restructuring costs 98 513
Tax on the adjustments (113) (340)
Adjusted profit attributable to owners of the parent 4,380 3,162
2024
No.
2023
No.
Basic weighted average number of shares, excluding own shares, in issue 39,781,184 40,004,526
Dilutive effect of share options 1,117,888 825,517
Diluted weighted average number of shares, excluding own shares, in issue 40,899,072 40,830,043
2024 2023
Pence Pence
per share per share
Basic Earnings per share 10.15 5.29
Diluted Earnings per share 9.87 5.18
Adjusted Basic Earnings per share 11.01 7.90
Adjusted Diluted Earnings per share 10.71 7.74
6. Dividends
2024 2023
£'000 £'000
Amounts recognised as distributions to equity holders
Final dividend for the year ended 31 March 2023 of 2.15p (for the year ended 856 831
31 March 2022: 2.07p) per share
Special dividend for the year ended 31 March 2023 of nil p (31 March 2022: - 5,012
12.5p) per share
Interim dividend for the year ended 31 March 2024 of 0.92p (31 March 2023: 365 351
0.88p) per share
1,221 6,194
The proposed final dividend for the year ended 31 March 2024 of 2.23p is
subject to shareholder approval at the AGM and has not been included as a
liability in these financial statements. The final dividend is expected to be
paid on 16 August 2024 to shareholders on the register as at the close of
business on 19 July 2024.
7. Trade and other receivables
Non-current 2024 2023
£'000 £'000
Prepayments 233 181
Accrued Income - 761
233 942
Current 2024 2023
£'000 £'000
Trade receivables 5,917 4,967
Other debtors 68 45
Prepayments 1,627 1,295
Accrued Income 1,070 1,254
8,682 7,561
Ageing of receivables 2024 2023
£'000 £'000
Less than 30 days 1,257 1,211
31 to 60 days 4,412 3,693
61 to 90 days 124 -
91 to 120 days 4 63
More than 120 days 120 -
5,917 4,967
An amount of £5.4 million of the £5.9 million of trade receivables had been
received as at 30 June 2024.
The average credit period taken on sales of goods and services was 79 days
(FY23: 108 days).
In accordance with IFRS 9, the Group performed a year end impairment exercise
to determine whether any write down in amounts receivable was required, using
an expected credit loss model. The expected loss rate for receivables less
than 120 days old is 0% and above 120 days has not been considered on the
basis of immateriality. In determining the recoverability of a trade
receivable the Group considers any change in the credit quality of the trade
receivable from the date credit was initially granted up to the reporting
date.
8. Trade and other payables
2024 2023
£'000 £'000
Trade payables 2,049 585
Other taxes and social security 265 382
Other creditors 270 76
Accruals 5,947 1,176
8,531 2,219
There is no material difference between the fair value of payables and their
carrying value.
Trade payables comprise amounts outstanding for trade purchases and ongoing
costs. The average credit period taken for trade purchases is 26 days (FY23:
14 days). Their carrying value approximates to their fair value.
9. Investor presentation
The investor presentation will be available on the company's website
https://investors.celebrus.com/ (https://investors.celebrus.com/) later
today. Bill Bruno (CEO) and Ash Mehta (CFO) will provide a live presentation
relating to the full-year results via the Investor Meet Company platform today
at 2pm BST.
Investors can sign up to Investor Meet Company for free and add to meet
Celebrus via the link below:
https://www.investormeetcompany.com/companies/celebrus-technologies-plc
(https://www.investormeetcompany.com/companies/celebrus-technologies-plc)
10. Annual Report and Accounts and Notice of AGM
The 2024 Annual Report and Accounts will be available on the company's website
https://investors.celebrus.com/ (https://investors.celebrus.com/) later today,
9 July 2024. The Notice of AGM will be made available on the company's
website, along with the shareholder proxy form, and a shareholder notification
on 15 July when the notification will be posted to shareholders for the
purposes of the AIM Rules for Companies and in accordance with the Company's
articles of association. Hard copies will also be available from the Company's
registered office Elmbrook House, 18-19 Station Road, Sunbury-on-Thames,
Middlesex, TW16 6SB.
11. Annual General Meeting
The 2024 Annual General Meeting of the Company will be held at 9am BST on
Thursday 8 August 2024 at the Company's registered office. This will comprise
formal business only. The directors plan to broadcast a Q&A session later
in the day at 2pm BST via the Investor Meet Company platform. Investors can
sign up to Investor Meet Company for free and add to meet Celebrus via the
link below:
https://www.investormeetcompany.com/companies/celebrus-technologies-plc
(https://www.investormeetcompany.com/companies/celebrus-technologies-plc)
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