REG - Cirata PLC - Preliminary Results
31/03/2025 07:15
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RNS Number : 7976C Cirata PLC 31 March 2025
31 March 2025
Cirata plc
("Cirata" or the "Company")
Preliminary results for the year ended 31 December 2024
Cirata (LSE: CRTA) today announces its audited preliminary results for the
year ended 31 December 2024 ("FY24"). The release of the Company's FY24 Annual
report will be announced in due course.
Financial Headlines
● Bookings for the year: $7.1m (FY23: $7.2m)
● Revenue for the year: $7.7m (FY23: $6.7m)
● Cash overheads: $20.6m (FY23: $30.3m)
● Adjusted EBITDA : loss of $13.5m (FY23: loss of $24.2m)
● Loss from operations: $13.5m (FY23: $36.5m)
● Cash at 31 December 2024: $9.7m (FY23: $18.2m)
Bookings
For FY24 overall, the Company delivered total bookings of $7.1m (FY23 $7.2m),
broadly flat on the prior year but with improving quality and a mix shift to
Data Integration ("DI"), which management expects to lead to growth in future
bookings. DI bookings grew by 80% to $4.7m, with the trend towards DI
(Cirata's core growth driver) in line with the Company's trading update on 9
January 2025. DI accounted for 67% of bookings and DevOps software accounted
for 33% (FY23: DI 36% and DevOps 64%).
Major wins in the period included a $2.0m Live Data Migrator (LDM) contract
with a top 3 US bank for a one-year term. This deal represents the largest
Original Equipment Manufacturer ("OEM") Big Replicate implementation to date.
FY24 saw improved engagement with both customers and partners. Changes
implemented in the Company's go-to-market ("GTM") strategy, including
establishing dedicated teams for DI and DevOps, have begun to bear fruit.
Improving momentum was observed in the pipeline, supported by partnerships
with IBM, Databricks and Oracle. Notable achievements in Q4 included 13 new
contract signings, with 6 focused on DI.
Current Trading
We expect the momentum in DI to continue in FY25, with Q1 broadly in line with
management expectations. The Company will be releasing a Q1 trading update
in mid-April.
FY25 Outlook
Management expects improvements in the levels of sales activity and execution,
both directly and through its partners, as well as via improved visibility and
predictability. For example, elements of the GTM 'Land & Expand' strategy
continue to yield growth from existing customers. Management, however, expects
the acquisition of new customers to be an improving source of future growth as
we move through FY25.
Management's aspiration to achieve cash flow breakeven remains unchanged,
supported by ongoing improvements in pipeline conversion and operational
discipline.
At this very early stage in the financial year, management's plans for FY25
are:
· Continued improvement in the quality of business mix and revenues
towards DI
· Continued high growth in DI following the FY24 trajectory
· Greater stability in renewals and DevOps
· Further expense savings to provide an annualized expense run-rate
of $16-17m from the end of Q1 FY25. The sustainable cost base will be
approximately one-third of the peak expense levels of early FY23
· Bookings to continue to be back-end weighted with a similar quarterly
profile to FY24
As previously stated in the Company's Q4 FY24 trading update, management does
not anticipate an FY25 fundraise for working capital given its assessment of
the current pipeline, the strategic actions to improve predictability and the
significantly reduced cost base.
Stephen Kelly, Chief Executive Officer, commented:
"2024 was a transitional year for Cirata as we moved from 'rescue' to
'recovery', stabilizing the business to prepare for growth. We have reduced
our cost base by roughly two-thirds since the peak in early FY23. Our efforts
in restructuring the organisation, strengthening governance and enhancing
cultural accountability have delivered tangible results, including the largest
LDM Original Equipment Manufacturer implementation in our history with our
partner IBM.
The release of LDM 3.0 and our reinvigorated partnerships with IBM, Microsoft,
Databricks and Oracle position us well to leverage the growing demand for
seamless data integration and AI-driven analytics.
While challenges remain and stronger execution is required, the focus for FY25
is clearly on growth and a pivotal year for establishing Cirata as a
consistent growth company. The foundations we have put in place and the
progress we have made, affirm Cirata's potential as a leader in enterprise
data solutions.
This announcement contains inside information under the UK Market Abuse
Regulation. The person responsible for arranging the release of this
announcement on behalf of Cirata is Larry Webster, Company Secretary.
For further information, please contact:
Cirata Via FTI Consulting
Stephen Kelly, Chief Executive Officer
Ricardo Moura, Chief Financial Officer (Interim)
Dan Hayes, Investor Relations
FTI Consulting +44 (0) 20 3727 1137
Matt Dixon / Kwaku Aning / Usama Ali
Stifel (Nomad and Joint Broker) +44 (0) 20 7710 7600
Fred Walsh / Brough Ransom / Ben Good
Panmure Liberum (Joint Broker) +44 (0) 20 3100 2000
Max Jones / John More
About Cirata
Cirata, accelerates data-driven revenue growth by automating data transfer and
integration to modern cloud analytics and Artificial Intelligence ("AI")
platforms without downtime or disruption. With Cirata, data leaders can
leverage the power of AI and analytics across their entire enterprise data
estate to freely choose analytics technologies, avoid vendor, platform, or
cloud lock-in while making AI and analytics faster, cheaper, and more
flexible. Cirata's portfolio of products and technology solutions make
strategic adoption of modern data analytics efficient and automated. For more
information about Cirata, visit www.cirata.com (http://www.cirata.com/) .
Business Review
Chief Executive Officer's Statement
Building Momentum for Growth: Transition from Recovery.
As I chronicled last year, FY23 was a rescue year for a broken company. FY24
was a year of building foundations, regaining trust and confronting the legacy
challenges that hampered Cirata's potential. Rescuing and building a company
back from FY23 from the ground up has been a demanding journey for the
management team. We understand the sentiment of demoralised colleagues,
customers, partners and investors who understandably felt extremely let down,
given the $250m capital raised since the Company's IPO.
As we move into FY25, I am pleased to report that last year's extensive
restructuring, cultural renewal and operational focus are beginning to bear
fruit. While we are only part way through our journey, we are no longer
defined by past struggles but are shaped by future opportunities. Our focus
for FY25 will be on transitioning to a more predictable growth phase, scaling
operations, striving for continued high growth in Data Integration, achieving
cash flow break-even and avoiding seeking further working capital.
Rebuilding foundations
Management concluded a market analysis and strategy review named "Lighthouse
1.0" in April 2023. This resulted in a renewed focus on core segments for data
migration / modernisation. Lighthouse provided key recommendations for changes
in the sales and marketing areas during 2024.
Marketing efforts were inefficient, with activities such as events and partner
programs failing to generate sufficient pipeline. Sales quality was subpar,
relationships with partners were strained, and pre-sold business opportunities
were poorly managed and under-consumed.
Additionally, a culture of underperformance and disassociation detached from
the Company's grim loss-making reality prevailed. It was crucial to avoid a
'shock and awe' approach with indiscriminate cost cutting, focusing instead on
thoughtful and strategic restructuring to nurture the foundations for growth
of the business whilst retaining critical intellectual property.
FY24 represented a critical inflection point as we laid the groundwork for
future profitability and positioned Cirata as a trusted partner in the
evolving Data Integration and DevOps markets.
For five years, the Company has broadly 'flat-lined'. However, regarding
business quality, bookings and revenues have become substantially stronger
during FY24, as evidenced by the DI transition and new contract wins.
We wanted greater growth in FY24 and 15% revenue growth YoY driven off on an
annualized cost base reduced by approximately 55% since the peak expense
run-rate, shows some positive progress.
Evidence of rebuilt trust was shown through the signing of a c.$2.0m Live Data
Migrator ("LDM") contract with a top 3 US bank, representing the largest
Original Equipment Manufacturer ("OEM") Big Replicate implementation to date.
These achievements underscore our ability to deliver enterprise-grade
solutions while driving growth in our core Data Integration product.
FY24 delivered total bookings of $7.1m (FY23: $7.2m), with Data Integration
bookings increasing by 80% year-on-year to $4.7m. Data Integration accounted
for 67% of bookings, compared to 36% in FY23, reflecting our strategic pivot
toward high-growth opportunities and DI as the strategic growth catalyst.
FY24 generated revenue of $7.7m (FY23: $6.7m) and an adjusted EBITDA loss of
$13.5m (FY23: loss of $24.2m). This reduction in EBITDA losses, nearly halved
from the previous year, is a testament to the effectiveness of our strategic
cost reduction efforts. Positioning the business to take advantage of growth
opportunities.
Actions Taken
1. Reinforcing Market Positioning and
Go-to-Market ("GTM") Strategy
- Management concluded a market analysis and strategy review named
'Lighthouse 1.0' in April 2023. This resulted in a renewed focus on core
segments for data migration / modernisation. Lighthouse provided key
recommendations for changes to sales and marketing during 2024.
- The sales team is more established, providing greater confidence in
sales cycle management and improving deal closure predictability.
- We have launched a streamlined GTM strategy. This includes dedicated
teams for both DI and DevOps solutions, with the leadership of Chris Cochrane
for DI in North America, which is our main market and geographical region.
- Early signs of momentum are translating into a growing pipeline for
FY25, supported by renewed confidence from partners such as IBM, Microsoft,
Oracle and Databricks. Lighthouse highlighted the OEM opportunity, which is
particularly relevant to IBM with the white-labeled 'Big Replicate' product.
The success of a Top 3 US bank expanding its relationship with Cirata through
IBM serves as evidence.
- We made significant changes to our digital marketing cadence over the
last several quarters, together with a wholesale change to our website and
product positioning. This significantly improved inbound, organic lead
generation, with over 35 inbound inquiries in the last 90 days of FY24 from
virtually zero. The lead generation activity continues into this year.
2. Deepening customer engagement
- Our 'land and expand' strategy continues to deliver results, with 13
contracts signed in Q4 FY24, six of which were for Data Integration. Notable
examples include a Top 3 US Bank and Experian, who are consuming more data.
Cirata is encouraging customers to transition towards an annual subscription
model. This strategy allows us to nurture initial engagements into multi-year
relationships with enterprise customers. With the evolution towards data
orchestration, Management expects customers to graduate to 'Cirata Everywhere'
with coverage for semi and unstructured data enterprise-wide.
- Our partnerships are an important part of our strategy, and we've
worked hard to rebuild partner trust over the last several quarters, resolving
legacy issues related to unspent prepaids, better alignment with our product
roadmap, and working proactively with our partners to build a qualified
pipeline.
3. Driving recurring revenue and operational excellence
- We are targeting a shift towards recurring revenue models, leveraging
our DI platform's capabilities to address complex enterprise data challenges
and the growing demand for AI-driven analytics.
4. Financial discipline and path to future profitability
- Preserving cash remains a top priority, with the FY24 annualized cost
base reduced further to $20.4m, down from the annualized run rate of
approximately $45m at its peak.
- Management has acted to provide further improvements on this front,
anticipating a reduction to the annualized cash cost overhead by a further
c.$4m during Q1 FY25. This means the annualized cost run rate will be $16-17m
as the Company exits Q1 FY25, approximately one-third of its peak cost base.
- As the Company drives bookings growth, the direction of travel on this
particular KPI is clear towards cash flow break even.
The Company's cash balance was $9.7m as of 31 December 2024 with short term
trading receivable position increased to $3.0m as of 31 December 2024 (Q4
FY23: $1.8m) This was due to the higher amount of bookings invoiced in the
fourth quarter of FY24 compared to FY23.
A renewed culture of accountability
Cirata's cultural transformation has been central to our progress. Our
colleagues, united by a clear vision and shared values, are embracing a
culture of execution, resilience and accountability. Comprehensive
communications, onboarding, compliance training, incentives, and quarterly
business reviews are some factors that help ensure alignment across the
organisation.
We are proud to operate with a strengthened governance framework underpinned
by our "Code of Business Conduct and Ethics." This commitment to transparency
and integrity remains at the heart of our operations as we rebuild trust with
all stakeholders.
Cirata provides quarterly reporting for investors, which typifies the highest
disclosure standards for investors among AIM companies.
Outlook for FY25 and Beyond
We believe Cirata's technology occupies a unique position in the market,
enabling enterprises to harness the power of data for transformative insights,
analytics and Gen AI applications. As AI adoption accelerates and the need for
seamless data integration grows, Cirata's platform is more relevant than ever.
Looking ahead, the Company is transitioning to a more predictable growth
phase, aligned with a Target Operating Model that better reflects companies
operating in the software industry. This will allow management to benchmark
more effectively capital allocation to sales & marketing, engineering and
G&A as the business scales.
Management expects to see continued improvements in the quality of the
business mix and revenues, with a growing emphasis on Data Integration (DI),
which is expected to sustain the high growth trajectory established in FY24.
In parallel, Cirata aims to drive greater stability in renewals and DevOps,
strengthening the foundation for long-term, recurring revenues.
Bookings are expected to follow a similar quarterly profile to FY24, remaining
back-end weighted as the business executes its sales strategy.
Management does not anticipate an FY25 fundraise for working capital given its
assessment of the current pipeline, the strategic actions to improve
predictability and the significantly reduced cost base.
Our commitment to shareholders is unwavering: we are here to deliver long-term
value through focused execution, disciplined growth, and consistent delivery.
I would not pretend our journey with Cirata has not been hard and taken longer
than expected. It has often been gruelling, with many unplanned and negative
surprises. With FY24, the legacy issues subsided, and management could for the
first time concentrate its energy on strategies for growth. I do not
underestimate the challenges of growth, but this management team is 'all in'
and providing Cirata with its best opportunity to fulfil its potential for
value creation to deliver for shareholders.
Gratitude to our investors
I would also like to take a moment to express my sincere gratitude to our
investors who have supported Cirata through this journey. Their commitment has
been vital to our ability to lead in the rescue and recovery phases as we
execute on our strategy. I would also like to express my gratitude to our
colleagues, customers, partners, and shareholders for their continued support
and belief in Cirata. Your resilience and dedication inspire us every day.
Together, we are rebuilding Cirata into a stronger, more agile and more
impactful organisation. It has been tougher than anticipated and has required
more than expected to fix such a broken company. Our mission is to build a
growth company that will maximise value creation for investors.
Cirata's journey and path forward
Cirata has not been for the faint-hearted. As a British tech battler on the
global stage, especially aspiring to be strong in the US market, the Company
has to punch above its weight. Building a growth company from the wreckage of
a broken company has been challenging and has tested us all.
The path ahead will not be linear, but it is clear. We are energized, focused,
and committed to making FY25 the year Cirata continues to turn a corner and
stake its position as a leader in data innovation.
Stephen Kelly
Chief Executive Officer
Financial Review
Reflections on 2024
Revenue for the year ended 31 December 2024 was $7.7m (FY23: $6.7m). Deferred
revenue at 31 December 2024 was $2.3m (FY23: $2.7m), reflecting continued
strong renewals and multi-year contracts.
Adjusted EBITDA loss was $13.5m (FY23 EBITDA loss: $24.2m).
Revenue
Revenue for the year ended 31 December 2024 increased to $7.7m, compared to
$6.7m in FY23, reflecting a year-on-year growth of approximately 15%. This
improvement was primarily driven by significant growth in DI bookings, which
increased by 80% and accounted for 67% of total bookings, compared to 36% in
FY23. The successful execution of the "land and expand" strategy contributed
to higher multi-year contract renewals and new customer acquisitions,
including Cirata's largest-ever LDM contract valued at c.$2.0m.
Revenue also benefited from strong contributions from the North American
region, which continued to lead geographically, and increased deferred revenue
from multi-year deals, indicating stronger forward revenue visibility.
Operating costs
Cash overheads decreased to $20.6m (FY23: $30.3m), reflecting a deliberate
focus on cost optimization. Management anticipates further reductions in FY25
to $16-$17m annualized cash overheads, aligned with operational efficiency
targets.
Profit and Loss
Adjusted EBITDA loss for FY24 was $13.5m (FY23: $24.2m). Loss from operations
reduced to $13.5m (FY23: $36.5m), supported by higher revenues and disciplined
cost management.
Consolidated statement of financial position
Property, plant and equipment at 31 December 2024 was $0.2m (31 December 2023:
$0.2m).
Trade and other receivables at 31 December 2024 were $4.8m (31 December 2023:
$4.4m). This includes $3.0m of trade receivables (31 December 2023: $1.8m) and
$1.8m related to non-trade receivables (31 December 2023: $2.6m). Trade
receivables increased at 31 December 2024 due to the higher amount of bookings
invoiced in the fourth quarter of FY24 compared to FY23. Non-trade receivables
reduced mainly due to lower prepayments and other receivables.
Cash flow
The cash balance as of 31 December 2024 was $9.7m (FY23: $18.2m). Net cash
outflow reduced significantly due to a leaner cost base and improved revenue
realization.
Subsequent events
There are no subsequent events to report.
Ricardo Assuncao Moura
Chief Financial Officer (Interim)
Consolidated statement of profit or loss
and other comprehensive income
For the year ended 31 December 2024
Year ended Year ended
31-Dec-24 31-Dec-23
(Audited) (Audited)
Note $'000 $'000
Revenue 3 7,681 6,695
Cost of sales (537) (633)
Gross profit 7,144 6,062
Operating expenses 4 (21,805) (37,625)
Other income/(expense) 207 (46)
Impairment loss (563) (815)
Operating loss 4 (15,017) (32,424)
Finance income 1,584 164
Finance costs (76) (4,227)
Net finance income/(costs) 1,508 (4,063)
Loss before tax (13,509) (36,487)
Income tax credit - 8
Loss for the year (13,509) (36,479)
Other comprehensive (loss)/income
Items that are or may be reclassified subsequently to profit or loss:
Foreign operations - foreign currency translation differences (1,577) 4,489
Other comprehensive (loss)/income for the year, net of tax (1,577) 4,489
Total comprehensive loss for the year attributable to owners of the parent (15,086) (31,990)
Loss per share
Basic and diluted loss per share (cent) 5 (11) (41)
The notes form an integral part of these condensed consolidated financial
statements.
Consolidated statement of financial position
At 31 December 2024
31-Dec-24 31-Dec-23
(Audited) (Audited)
$'000 $'000
Note
Assets
Property, plant and equipment 198 151
Other non-current assets 6 180 278
Non-current assets 378 429
Trade and other receivables 7 4,812 4,439
Cash and cash equivalents 9,732 18,246
Current assets 14.544 22,685
Total assets 14.922 23,114
Equity
Share capital 17,100 15,634
Share premium 261,726 256,278
Translation reserve (10,661) (9,084)
Merger reserve 1,247 1,247
Retained earnings (259,839) (247,461)
Total equity 9,573 16,614
Liabilities
Loans and borrowings 8 367 359
Deferred income 9 223 129
Deferred tax liabilities 3 3
Non-current liabilities 593 491
Loans and borrowings 8 522 436
Trade and other payables 2,125 2,986
Deferred income 9 2,109 2,587
Current liabilities 4,756 6,009
Total liabilities 5,349 6,500
Total equity and liabilities 14,922 23,114
The notes form an integral part of these condensed consolidated financial
statements
Consolidated statement of changes in equity
For the year ended 31 December 2024
Attributable to owners of the Company
Audited Share Share Translation reserve Merger Retained earnings Total
capital premium $'000 reserve $'000 equity
$'000 $'000 $'000 $'000
Balance at 31 December 2022 9,524 232,861 (13,573) 1,247 (213,496) 16,563
Total comprehensive income/(loss) for the year
Loss for the year - - - - (36,479) (36,479)
Other comprehensive income for the year - - 4,489 - - 4,489
Total comprehensive income/(loss) for the year - - 4,489 - (36,479) (31,990)
Transactions with owners of the Company
Contributions and distributions
Equity-settled share-based payment - - - - 2,514 2,514
Proceeds from share placing 6,059 22,400 - - - 28,459
Share options exercised 51 1,017 - - - 1,068
Total transactions with owners of the Company 6,110 23,417 - - 2,514 32,041
Balance at 31 December 2023 15,634 256,278 (9,084) 1,247 (247,461) 16,614
Audited
Total comprehensive loss for the year
Loss for the year - - - - (13,509) (13,509)
Other comprehensive loss for the year - - (1,577) - - (1,577)
Total comprehensive loss for the year - - (1,577) - (13,509) (15,086)
Transactions with owners of the Company
Contributions and distributions
Equity-settled share-based payment - - - - 1,131 1,131
Proceeds from share placing 1,310 5,445 - - - 6,755
Proceeds from share allotment 151 - - - - 151
Share options exercised 5 3 - - - 8
Total transactions with owners of the Company 1,466 5,448 - - 1,131 8,045
Balance at 31 December 2024 17,100 261,726 (10,661) 1,247 (259,839) 9,573
The notes form an integral part of these condensed consolidated financial
statements
Consolidated statement of cash flows
For the year ended 31 December 2024
Year ended Year ended
31-Dec 31-Dec
2024 2023
Note (Audited) (Audited)
$'000 $'000
Cash flows from operating activities
Loss for the year (13,509) (36,479)
Adjustments for:
- Depreciation of property, plant and equipment 59 629
- Loss on disposal of property, plant and equipment - 125
- Release of lease liability - (216)
- Impairment of right of use asset 563 815
- Net finance income/(expense) (excluding foreign exchange) 16 (137)
- Income tax credit and other Income - 38
- Foreign exchange (1,511) 3,952
- Equity-settled share-based payment 10 1,131 2,514
(13,251) (28,759)
Changes in:
- Trade and other receivables (276) 540
- Trade and other payables (852) (3,451)
- Deferred income (379) 447
Net working capital change (1,507) (2,464)
Cash used in operating activities (14,758) (31,223)
Interest paid (16) (27)
Income tax received - 652
Net cash used in operating activities (14,774) (30,598)
Cash flows from investing activities
Interest received - 33
Acquisition of property, plant and equipment (107) (76)
Cash used in investing activities (107) (43)
Cash flows from financing activities
Gross proceeds from issue of share capital 7,361 31,362
Share issue costs (447) (1,835)
Payment of finance lease liabilities (470) (430)
Net cash generated from financing activities 6,444 29,097
Net decrease in cash and cash equivalents (8,437) (1,544)
Cash and cash equivalents at the start of the year 18,246 19,108
Effect of movements in exchange rates on cash held and cash equivalents (77) 682
Cash and cash equivalents at the end of the year 9,732 18,246
Notes to the condensed consolidated financial statements
For the year ended 31 December 2024
1. Reporting entity
Cirata plc (the "Company") is a public limited company incorporated and
domiciled in Jersey. The Company's ordinary shares are traded on AIM. The
Company's registered office is First Floor Osprey House, Old Street, St.
Helier, Jersey, JE2 3RG. These consolidated financial statements comprise the
Company and its subsidiaries (together referred to as the "Group"). The Group
is primarily involved in the development and provision of global collaborative
software.
2. Basis of preparation
a. Basis of accounting
These consolidated financial statements have been prepared in accordance with
UK adopted international accounting standards. They were authorised for issue
by the Company's Board of Directors on 28 March 2025.
Under Article 105(11) of the Companies (Jersey) Law 1991, a parent company
preparing consolidated financial statements need not present solus (parent
company only) financial information, unless required to do so by an ordinary
resolution of the Company's members.
Details of the Group's material accounting policies are included in Note 28.
The policies have been consistently applied to all the years presented, unless
otherwise stated.
The following new standards and amendments to standards that are effective for
the first time for the financial year beginning 1 January 2024 have been
adopted:
» Classification of Liabilities as Current or Non-current (Amendment to IAS
1).
These amendments to standards have not had a material impact on these
financial statements.
b. Going concern basis of accounting
To assess whether it is appropriate to prepare the financial statements on a
going concern basis the Directors have prepared forecasts and budgets. These
forecasts and budgets take into consideration the results of a robust
assessment of the principal risks facing the Group, including those risks that
would threaten the Group's business model, future performance, and liquidity.
In the year ended 31 December 2024, the Group incurred a loss before tax of
$13.5m (2023: $36.5m) and experienced a net cash outflow before financing of
$14.8m (2023: $30.6m). During 2024, the performance of the Group improved,
with revenue increasing by 15% to $7.7m (2023: $6.7m) and operating losses of
$15.0m (2023: $32.4m) were incurred. As at 31 December 2024 the Group had net
assets of $9.6m (2023: $16.6m), including cash of $9.7m (2023: $18.2m). As at
31 December 2024 the Group had no debt facilities (2023: none).
In performing its going concern assessment, the Directors are required to
consider a minimum period of twelve months from the date of approving the
financial statements. Scenario modelling has been undertaken over the period
to 31 December 2026. The assessment involved the preparation of a 'Base' case
and a severe but plausible 'Downside' case.
The Base case scenario included assumptions for quarterly sales targets,
anticipated changes to Group's current contracting model, timeframes for new
sales personnel to convert sales pipelines, and cost assumptions reflecting an
overhead annualised cost base and sales commissions totaling c.$16.3m. Under
the Base case the Group is forecasting the ability to meet all financial
obligations as and when they fall due during the period forecast.
The Downside case sensitised the Base case and modelled materially lower sales
bookings during the period without any cost reduction, which would be taken in
such a scenario. Under the Downside case the Group is forecasting a reduction
in cash resources to effectively nil by end of December 2026. The Downside
scenario does not consider any readily available mitigating actions that
management could take, such as further cost savings. By their very nature
forecasts and projections are inherently uncertain. The biggest driver of the
uncertainty continues to be around the ability of the business to successfully
close sales in a predictable and sustainable way. Consequently, the
loss-making position of the Group and the low forecast cash balance sheet
position heightens the uncertainty such that circumstances could arise under
which the downside scenario may occur that would render the preparation of
accounts based on the assumption of a going concern inappropriate.
Accepting the material uncertainty, the Directors have a reasonable
expectation that the Group has adequate resources to continue in operational
existence for the foreseeable future. For these reasons, they continue to
adopt the going concern basis in preparing the Annual Report and Accounts. No
adjustments have been made to the financial statements that would result if
the Group were unable to continue as a going concern.
c. Functional and presentational currency
The consolidated financial statements are presented in US dollars, as the
revenue for the Group is predominantly derived in this currency. Billings to
the Group's customers during the year by Cirata, Inc. were all in US dollars
with certain costs being incurred by Cirata Ltd in sterling and Cirata, Pty
Ltd in Australian dollars. All financial information has been rounded to the
nearest thousand US dollars unless otherwise stated.
d. Alternative performance measures
The Group uses a number of alternative performance measures ("APMs") which are
non-IFRS measures to monitor the performance of its operations. The Group
believes these APMs provide useful information to help investors and other
stakeholders evaluate the performance of the business and are measures
commonly used by certain investors for evaluating the performance of the
Group. In particular, the Group uses APMs which reflect the underlying
performance on the basis that this provides a more relevant focus on the core
business performance of the Group and aligns with our KPIs. Adjusted results
exclude certain items because if included, these items could distort the
understanding of our performance for the year and the comparability between
periods. The Group has been using the following APMs on a consistent basis and
they are defined and reconciled as follows:
- Cash overheads: Operating expenses adjusted for: depreciation,
amortisation, equity-settled share-based payment and other one-off
non-recurring items disclosed separately. See Note 9 for a reconciliation.
- Adjusted EBITDA: Operating loss adjusted for: impairment loss,
depreciation, amortisation, equity-settled share-based payment, other
(expense)/income and other one-off non-recurring items disclosed separately.
See Note 4 for a reconciliation.
e. Use of judgements and estimates
In preparing these financial statements, management has made judgements and
estimates that affect the application of the Group's accounting policies and
the reported amounts of assets and liabilities, income and expenses. Actual
results may differ from these estimates. The significant judgements made by
management in applying the Group's accounting policies and the key sources of
estimation uncertainty were the same as those described in the last annual
financial statements.
3. Revenue and segmental analysis
a. Operating segments
The Directors consider there to be one operating segment, being that of
development and sale of licences for software, related maintenance and
support and professional services.
b. Geographical segments
The Group recognises revenue in three geographical regions based on the
location of customers, as set out in the following table:
Year ended Year ended
31-Dec 31-Dec
2024 2023
(Audited) (Audited)
$'000 $'000
Revenue
North America 5,576 4,603
Europe - Germany 557 896
Europe - Other 522 479
Rest of the world - China 536 478
Rest of the world - Other 490 239
7,681 6,695
Management makes no allocation of costs, assets or liabilities between these
segments since all trading activities are operated as a single business unit.
c. Major products
The Group's core patented technology, Distributed Coordination Engine (DConE)
enables active-active replication without the limitations of a central
transaction coordinator. This technology is used in many of the Group's
products.
d. Major customers
Year ended 31 December Year ended 31 December Year ended 31 December Year ended 31 December
2024 2024 2023 2023
(Audited) (Audited) (Audited) (Audited)
% of Revenue % of Revenue
revenue $'000 revenue $'000
Customer 1 23% 1,729 15% 984
Customer 2 13% 983 12% 832
Customer 3 9% 718 11% 716
Customer 4 3% 196 3% 174
e. Split of revenue by timing of revenue recognition
Year ended Year ended
31-Dec 31-Dec
Revenue 2024 2023
(Audited) (Audited)
$'000 $'000
Products transferred at a point in time 5,462 4,222
Products and services transferred over time 2,219 2,473
7,681 6,695
f. Contract balances
The following table provides information about contract assets and liabilities
from contracts with customers.
31-Dec 31-Dec
2024 2023
(Audited) (Audited)
$'000 $'000
Contract assets, which are included in "Other non-current assets - Accrued 173 265
income"
Contract assets, which are included in "Trade and other receivables - Accrued 191 800
income"
Total contract assets 364 1,065
Contract liabilities, which are included in "Deferred income - non-current" (223) (129)
Contract liabilities, which are included in "Deferred income - current" (2,109) (2,587)
Total contract liabilities (2,332) (2,716)
4. Cash overheads and Adjusted EBITDA loss
Year ended Year ended
31-Dec 31-Dec
2024 2023
(Audited) (Audited)
$'000 $'000
a Reconciliation of operating expenses to "Cash overheads": Note
Operating expenses (21,805) (37,625)
Adjusted for:
Advisor costs relating to the Irregularities - 4,175
Amortisation and depreciation 59 629
Equity-settled share-based payment 10 1,131 2,514
Cash overheads (20,615) (30,307)
Year ended Year ended
31-Dec 31-Dec
2024 2023
(Audited) (Audited)
$'000 $'000
b Reconciliation of operating loss to "Adjusted EBITDA loss": Note
Operating loss (15,017) (32,424)
Adjusted for:
Other (income)/expense (207) 46
Impairment loss 563 815
Advisor costs relating to the Irregularities - 4,175
Amortisation and depreciation 59 629
Equity-settled share-based payment 10 1,131 2,514
Adjusted EBITDA loss (13,471) (24,245)
5. Loss per share
a. Basic loss per share
The calculation of basic loss per share has been based on the following loss
attributable to ordinary shareholders and weighted average number of ordinary
shares outstanding:
Year ended Year ended
31 December 31 December
2024 2023
(Audited) (Audited)
$'000 $'000
Loss for the year attributable to ordinary shareholders 13,509 36,479
Weighted average number of ordinary shares 2024 2023
Number of shares Number of shares
'000 '000
Issued ordinary shares at 1 January 114,962 67,015
Effect of shares issued in the year 5,203 20,934
Weighted average number of ordinary shares at 31 December 120,165 87,949
2024 2023
Basic loss per share (cent) 11 41
b. Adjusted loss per share
Adjusted loss per share is calculated based on the loss attributable to
ordinary shareholders before one-off advisors costs relating to the
Irregularities, net foreign exchange gain/(loss), impairment loss and the cost
of equity-settled share-based payment, and the weighted average number of
ordinary shares outstanding:
Year ended Year ended
Adjusted loss for the year: Note 31-Dec 31-Dec
2024 2023
(Audited) (Audited)
$'000 $'000
Loss for the year attributable to ordinary shareholders 13,509 36,479
Adjusted for:
Advisor costs relating to the Irregularities - (4,175)
Impairment loss (563) (815)
Foreign exchange gain/(loss) 1,524 (4,200)
Equity-settled share-based payment 10 (1,131) (2,514)
Adjusted loss for the year 13,339 24,775
2024 2023
Adjusted loss per share (cent) 11 28
c. Diluted loss per share
Due to the Group having losses in all years presented, the fully diluted loss
per share for disclosure purposes, as shown in the Consolidated statement of
profit or loss and other comprehensive income, is the same as for the basic
loss per share.
6. Other non-current assets
31-Dec-24 31-Dec-23
(Audited)
(Audited)
$'000
Due in more than a year: $'000
Other receivables 7 13
Accrued income 173 265
Total other non-current assets 180 278
7. Trade and other receivables
31-Dec-24 31-Dec-23
(Audited) (Audited)
Due within a year: $'000 $'000
Trade receivables 2,995 1,775
Other receivables 391 515
Accrued income 191 800
Corporation tax 882 691
Prepayments 353 658
Total trade and other receivables 4,812 4,439
8. Loans and borrowings
31-Dec-24 31-Dec-23
(Audited) (Audited)
$'000 $'000
Non-current liabilities
Lease liabilities 367 359
367 359
Current liabilities
Current portion of lease liabilities 522 436
522 436
Total loans and borrowings 889 795
At 31 December 2024 and 2023, the Company had no bank loan debt.
9. Deferred income
Deferred income represents contracted sales for which services to customers
will be provided in future years.
31-Dec-24 31-Dec-23
(Audited) (Audited)
$'000 $'000
Deferred income which falls due:
Within a year 2,109 2,587
In more than a year 223 129
Total deferred income 2,332 2,716
10. Share-based payments
The Group operates share option plans for employees of the Group. Options in
the plans are settled in equity in the Company and are normally subject to a
vesting schedule but not conditional on any performance criteria being
achieved.
The terms and conditions of the share option grants are detailed in the Group
Annual Report and Accounts for the year ended 31 December 2024.
a. Expense recognised in profit or loss
Year ended Year ended
31-Dec 31-Dec
2024 2023
(Audited) (Audited)
$'000 $'000
Total equity-settled share-based payment charge 1,131 2,514
b. Summary of share options outstanding
2024 2023
Number of options Number of options
Number of share options outstanding: (Audited) (Audited)
Outstanding at 1 January 4,984,365 5,449,095
Forfeited during the year (486,498) (4,062,030)
Exercised during the year (34,187) (419,116)
Cancelled during the year - (435,286)
Granted during the year 941,000 4,451,702
Outstanding at 31 December 5,404,680 4,984,365
Exercisable at 31 December 2,312,805 421,944
Vested at 31 December 2,312,805 421,944
11. Commitments and contingencies
As at 31 December 2024 the group had no commitments (31 December 2023: $nil).
As at 31 December 2024 the group had a contingent liability related to an
ongoing FCA investigation, no liability has been recorded as at 31 December
2024 due to the uncertainty surrounding the investigation. At 31 December
2023, the group had a contingent liability of $127,303.
12. Subsequent events
There are no subsequent events to report.
1 Operating loss adjusted for: impairment loss, depreciation, amortisation,
equity-settled share-based payment, other income/(expense) and other one-off
non recurring items disclosed separately. See Note 4 for a reconciliation.
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