Falanx Group Limited - Interim Results
08/12/2022 07:00
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RNS Number : 9645I Falanx Group Limited 08 December 2022
This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.
Falanx Group Limited
("Falanx", "Group" or "the Company")
Interim results
Falanx Group Limited (AIM: FLX), the AIM listed provider of
cyber security services, is pleased to announce its interim results for the
six months ended 30 September 2022 (the "Period").
Financial Highlights for six months to 30 September 2022
• Orders for our core services were £1.89m (2021: £1.62m) representing growth
of 17%.
• Core Service Revenues held at £1.8m (2021: £1.8m), despite the exit from an
onerous non-core contract worth £250k per annum
• Group adjusted EBITDA* loss £1.12m (2021: £0.39m) following investment in
sales expansion
• Cash balances at 30 September 2022 £1.96m (2021: £0.51m), normal working
capital position
• Loss per share 0.28p (2021: 0.14p) from continuing operations
• Shareholders' funds £2.87m (2021: £2.0m)
Operational highlights
• Strong growth in pipeline combined with an increased proportion of MDR
opportunities
• Growth in both order volume and customer count in the period
• Two new Tier 1 channel partners signed up and the revitalisation of existing
partners
• Launch of two new entry-level defensive MRR services in R-IR and CVS already
delivering revenue.
• Expansion of the EDR portfolio to include additional market-leading software
vendors
• Ongoing development of f:CEL 2.0
Post Period Events
• Final £345,000 of cash consideration from the sale of Assynt in October 2021
was received early October 2022
• Order growth of +44% for core orders in October and November 2022 compared to
the same period in 2021
• Gross margin improved to 42% (H1 FY23 36% and FY22 40%)
• William Kilmer and Rick Flood joined the board as NED and Executive directors
respectively
* Adjusted EBITDA is a non-IFRS headline measure used by management to measure
the Group's performance and is based on operating profit before the impact of
financing costs, IFRS16, share based payment charges, depreciation,
amortisation, impairment charges and highlighted items
Alex Hambro, (Non-executive Chairman) of Falanx, commented:
"In the nine weeks since I last wrote to you, I am pleased to announce further
progress in sales with good order growth compared to last year. The drivers to
spending on cyber security are ever increasing, and we look forward to growth
in this year and next year. Our focus is to get to sustainable profitability
within our existing resources and we are planning on achieving this by both
recurring revenue growth and cost management. I am delighted to have
welcomed William Kilmer to the Group who joined us as a NED in October and his
wealth of experience in cyber security is already making an impact."
This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.
Enquiries:
Falanx Group Limited Via IFC
Alex Hambro Chairman
Mike Read CEO
Ian Selby CFO
WH Ireland + 44 (0) 207 220 1666
Mike Coe/ Sarah Mather (Nomad)
Joanna Hunt (Corporate Broking)
IFC Advisory Ltd +44 (0) 203 934 6630
Financial PR & IR
Graham Herring / Zach Cohen
About Falanx
Falanx Group Limited is a cyber security services provider, offering
enterprise-class offensive and defensive security solutions to Small and
Medium-sized Enterprises (SMEs). For further information
visit: www.falanxcyber.com (http://www.falanxcyber.com)
Our strapline is Attack. Defend. Protect.
Attack
These are our Offensive Services and are primarily centred around Penetration
Testing / ethical hacking ("PT"). Our comprehensive portfolio of PT services
covers a wide range of skills and techniques which we use to emulate potential
attackers looking for vulnerabilities in our client's infrastructure.
Defend
Our Defensive (managed) services are provided by our Security Operations
Centre ("SOC") based in Reading. The SOC operates a 24/7/365 service,
continually watching our customers' IT estates, looking for unusual activity
which may be a sign of a cyber-attack or data theft.
Protect
Through both our Offensive and Defensive services, we help our customers to
protect themselves against cyber-attacks.
Business Review
In the Period to September 2022, orders for our core services were £1.89m
(2021: £1.62m), representing growth of 17%. The majority of this growth
came from increased sales of our defensive services, all of which generate
Monthly Recurring Revenues ("MRR"). As outlined previously, the growth of
our MRR revenues is key to our strategy. Total orders for these MRR services
grew by over 100% in the Period.
During the Period, we exited a legacy consulting contract (which had the
potential to become onerous) at an agreed break point and the growth in MRR
sales has more than offset this revenue reduction with higher quality revenues
and better long-term margins. Overall, across our core services, we have
transacted with a greater number of customers than in the previous year.
Our target market is primarily SMEs and we focus our MRR service offerings on
organisations which employ between 50 and 1,000 staff. Cyber security threats
are ever growing, and against an increasingly difficult social and economic
backdrop, criminal activity is increasing. Cyber security insurance providers
are now significantly increasing premiums as well as applying increased
conditionality, which can include mandating use of cyber security services, as
a condition of cover. The need to protect a business' assets against
cyber-attacks is even more imperative now than ever before.
Consequently, we have evolved our service offerings to best address our target
market and protect those SMEs from cyber-attack, whatever their insured status
may be. To best address this, we have progressively introduced additional
defensive MRR services with lower entry price points in addition to our
existing Managed Detection and Response (MDR) and Managed-Endpoint Detection
and Response (M-EDR) services (both of which support multiple leading
enterprise-grade security vendor solutions). Retained Incident Response
("R-IR") and Continuous Vulnerability Scanning ("CVS") were introduced in the
summer of 2022, and we are seeing that customers are increasingly
understanding the need for both services - a rapid response service in the
case of a breach (R-IR) and continually scanning networks with CVS throughout
the year as well as the Pen Tests run annually. Consequently, we have a
growing pipeline of opportunities in these service lines since their launch
and this has already translated into sales to six customers - most of which
are existing Pen Test customers. As customers mature and evolve, full MDR
will become more relevant to their organisation.
In addition, we have expanded our network of channel partners in the last few
months. Some of these are starting to generate significant interest which has
already translated into sales. We are focusing on a limited number of Tier 1
channel partners where we invest time and resources and are selecting them
based on their experience, reputation, and their addressable market.
Post Period Update
Following on from the increase in MRR orders in the six months to 30 September
2022, combined with our rapidly growing pipeline of MRR opportunities, we have
restructured our sales team to maximise our ability to achieve our MRR sales
targets in the coming months. The sales team is now a single organisation
split into two focused sales groups - PenTest (Attack) and MRR (Defend). They
target new customers as well as cross selling into our base which is now has
over 400 clients. This allows increased dedicated and experienced resources to
focus on the more complex (and arguably more valuable) sales of MRR services,
whilst allowing the penetration testing services team to focus on their own
strong pipeline of business which typically has a shorter lead time. Early
results are promising, with aggregate orders for core services across October
and November 2022 growing by 44% compared to the same period in 2021.
Outside of our pipeline, we have several large-scale opportunities advancing
with major global technology providers (both new and existing relationships)
to partner as part of their Cyber go-to-market plans. As ever these
opportunities could be transformational for Falanx, and we look forward to
updating on these as they progress.
Financial Performance
Total revenues were £1.8m (2021: £1.8m). Within this, monthly recurring
revenues from monitoring services increased by 29% to £0.49m (2021: £0.38m)
offsetting a small reduction in professional services, the majority of which
came from our exit from a non-core legacy contract referenced previously.
Gross margin decreased to 36% (2021: 40%) due to expansion costs and some
price increases. Rectification actions were carried out, and in recent months
gross margins have recovered back to ahead of FY22 levels. The Group expects
to be able to manage these cost factors to protect gross margins going
forward. Underlying operating costs were £1.76m (2021: £1.10m) with the
increase arising from investment in sales and marketing expansion.
Consequently, the adjusted EBITDA loss was £1.1m (2021: £0.39m).
Depreciation and amortisation charges were £0.22m (2021: £0.25m), with the
vast majority being the routine amortisation (straight line basis over a 10
year period) of the customer base acquired in March 2018, as well as property
lease costs related to IFRS16.
Interest payable was £0.17m (2021: £0.04m) and was mainly comprised of
interest (including amortised costs) on the Boost loan of £2.5m drawn down in
October 2021 as the IFRS 16 element lease payments for the Reading office.
The loss from continuing operations was to £1.48m (2021: £0.71m). The loss
per share (both on a basic and fully diluted basis) from continuing operations
was 0.28p (2021: 0.13p).
Consolidated Statements of Financial Position & Cash Flow
Intangible assets were £3.1m (2021: £3.5m) and principally comprised of the
acquired customers base and associated goodwill. The £0.13m goodwill arising
from the acquisition of Securestorm Limited was fully impaired in the year
ended 31 March 2022.
Trade and other debtors stood at £1.21m (2021: £0.93m) with the increase
being due to the final £0.345m of the cash consideration from the disposal of
Assynt in October 2021 (which was held in escrow for 12 months) until it was
paid in early October 2022. Cash receipts were strong, with no incidence of
bad debt being recorded, and debtor days stood at 40 (2021: 42). Trade and
other payables reduced to £0.62m (2021: £1.29m) due to the repayment of HMRC
COVID-19 backlog which took place in H2 FY22. Deferred incomes increased to
£0.53m (2021: £0.39m) due to greater business volumes and overall, the Group
had a normal working capital profile at 30 September 2022.
Net cash outflow from operations was £1.30m (2021: £0.88m) and included the
final £0.07m payment of the HMRC COVID-19 backlog. Cash balances as at 30
September 2022 were £1.96m (2021: £0.51m) and overall shareholders' funds
were £2.87m (2021: £2.0m).
Events after the reporting Period
On 7 October 2022 the final £0.35 million of the Assynt disposal cash
consideration held escrow account against was released to the Group.
FALANX GROUP LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS PERIOD ENDED 30 SEPTEMBER 2022
6 Months to 6 Months to Year to
30 Sep 2022 30 Sep 2021 31 Mar 2022
(Unaudited) (Unaudited) (Audited)
£ £ £
Revenue 1,788,239 1,794,861 3,542,308
Cost of sales (1,140,719) (1,075,941) (2,099,732)
Gross profit 647,520 718,920 1,442,576
Administrative expenses (1,960,068) (1,390,355) (3,220,878)
Operating loss (1,321,048) (671,435) (1,778,302)
Analysis of operating loss
Operating loss (1,312,548) (671,435) (1,778,302)
Share option expense 8,500 20,000 17,839
Depreciation and amortisation 218,057 241,618 465,417
Impairment of goodwill - - 130,347
Highlighted costs / (income) (23,652) 24,083 (107,285)
Adjusted EBITDA loss (1,118,143) (385,734) (1,271,984)
Finance income 741 - 104
Finance expense (167,581) (36,071) (201,568)
Net finance expense (166,840) (36,071) (201,464)
Loss before income tax (1,487,888) (707,506) (1,979,766)
Income tax credit - - 8,479
Loss for the period from continuing operations (1,487,888) (707,506) (1,971,287)
Gain / (Loss) from discontinued operations, net of tax - (38,350) 3,455,869
Loss for the period (1,487,888) (745,856) 1,484,582
Other comprehensive income:
Re-translation of foreign subsidiaries - (1,432) -
Exchange differences recycled to the income statement on disposal of business - - 109,030
- (1,432) 109,030
Total comprehensive loss for the period (1,487,888) (747,288) 1,593,612
Loss per share from continuing operations
Basic loss per share (0.28) p (0.13) p (0.37) p
Diluted loss per share (0.28) p (0.13) p (0.37) p
Loss per share from continuing and discontinued operations
Basic loss per share (0.28) p (0.14) p 0.28 p
Diluted loss per share (0.28) p (0.14) p 0.28 p
All items are continuing save where stated otherwise.
FALANX GROUP LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2022
6 Months to 6 Months to Year to
30 Sep 2022 30 Sep 2021 31 Mar 2022
(Unaudited) (Unaudited) (Audited)
£ £ £
Assets
Non-current assets
Property, plant & equipment 105,505 125,679 104,352
Intangible assets 3,124,010 3,531,661 3,262,662
Right of use asset 141,768 308,781 254,290
3,371,283 3,966,121 3,621,304
Current assets
Trade and other receivables 1,215,741 930,628 1,192,220
Cash and cash equivalents 1,955,488 512,972 3,483,063
3,171,229 1,443,600 4,675,283
Assets in a disposal group classified as held for sale - 190,214 -
Total assets 6,542,512 5,599,935 8,296,587
Equity
Capital and reserves attributable to equity holders of the Company
Share premium account 4,043,194 4,039,125 4,043,194
Translation reserve - (109,209) -
Share based payment reserve 711,651 767,243 703,151
2022 liabilities reserve 1,000,000 1,000,000 1,000,000
Retained earnings (2,885,364) (3,689,845) (1,397,476)
Total equity 2,869,481 2,007,314 4,348,869
Liabilities
Non-current liabilities
Deferred tax liability - 8,479 -
Lease liability 93,641 203,081 149,691
Borrowings 1,840,369 968,830 2,094,739
Other payables - 5,532 -
1,934,010 1,185,922 2,244,430
Current liabilities
Trade and other payables 618,771 1,286,839 804,908
Contract liabilities 529,209 386,677 529,496
Lease liability 54,833 99,926 103,182
Borrowings 536,208 9,594 265,702
1,739,021 1,783,036 1,703,288
Liabilities directly associated with assets in the disposal group classified - 623,663 -
as held for sale
Total liabilities 3,673,031 3,592,620 3,947,718
Total equity and liabilities 6,542,512 5,599,935 8,296,587
FALANX GROUP LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Accumulated Translation Share based 2022
capital losses Reserve payment reserve Liabilities reserve Total
£ £ £ £ £
Balance at 1 April 2021 4,033,161 (2,943,989) (107,777) 747,243 1,000,000 2,728,638
Profit for the year - 1,484,582 - - - 1,484,582
Re-translation of foreign subsidiaries - - (1,253) - - (1,253)
Exchange differences recycled to the income statement on disposal of business - - 109,030 - - 109,030
Transactions with owners:
Issue of share capital 10,033 - - - - 10,033
Share based payment charge - - - 17,839 - 17,839
Forfeited share options reversed through reserves - 61,931 - (61,931) - -
Balance at 31 March 2022 4,043,194 (1,397,476) - 703,151 1,000,000 4,348,869
Loss for the year - (1,487,888) - - - (1,487,888)
Transactions with owners:
Share based payment charge - - - 8,500 - 8,500
Balance as at 30 September 2022 4,043,194 (2,885,364) - 711,651 1,000,000 2,869,481
FALANX GROUP LIMITED
CONSOLIDATED CASH FLOW STATEMENT FOR THE PERIOD ENDED 30 SEPTEMBER 2022
6 Months to 6 Months to Year to
30 Sep 2022 30 Sep 2021 31 Mar 2022
(Unaudited) (Unaudited) (Audited)
£ £ £
Cash flows from operating activities
Profit/(Loss) before tax (1,487,888) (746,906) 1,475,052
Adjustments for:
Depreciation 30,190 33,608 64,275
Amortisation of intangibles 138,652 166,766 305,538
Amortisation of right of use assets 49,215 54,491 108,982
Impairment of goodwill - - 130,347
Share based payment 8,500 20,000 17,839
Loss on disposal of equipment / fixtures and fittings - 77 -
Gain on disposal of subsidiaries - - (3,498,102)
Amortisation of borrowing cost 20,964 2,361 23,659
Net finance expense recognised in profit or loss 145,876 36,312 178,081
(1,094,491) (433,291) (1,194,329)
Changes in working capital:
Increase/(decrease) in trade and other receivables (23,520) (39,760) (290,025)
Decrease in trade and other payables (186,425) (403,510) (749,745)
Cash generated from / used in operations (1,304,436) (876,561) (2,234,099)
Interest paid (497) (11,003) (9,745)
Tax paid - 1,050 -
Net cash used in operating activities (1,304,933) (886,514) (2,243,844)
Cash flows from investing activities
Interest received 741 - 104
Acquisition of property, plant, and equipment (31,344) (3,987) (13,315)
Proceeds on disposal of subsidiaries, net of cash disposed - - 3,163,674
Net cash used in investing activities (30,603) (3,987) 3,150,463
Cash flows from financing activities
Repayment under finance lease (41,093) (47,133) (95.998)
Interest paid on lease liabilities (8,619) (11,923) (22,114)
Proceeds from borrowings - 1,000,000 2,500,000
Repayment of borrowings (4,827) (3,104) (7,906)
Loan transaction costs - (70,834) (205,347)
Interest paid on borrowing (137,500) (13,386) (146,291)
Proceeds from issue of shares - 5,964 10,033
Net cash used in / generated from financing activities (192,039) 859,584 2,023,377
Decrease/(increase) in cash equivalents (1,527,575) (30,917) 2,938,996
Cash and cash equivalents at beginning of the period 3,483,063 545,321 545,321
Foreign exchange gains on cash and cash equivalents - (1,432) (1,254)
Cash and cash equivalents at end of the period 1,955,488 512,972 3,483,063
FALANX GROUP LIMITED
NOTES TO INTERIM FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2022
1. General information
Falanx Group Limited (the "Company" or "Falanx") and its subsidiaries
(together the "Group") operate in the cyber security services market. The
Company is a public limited company which is listed on the AIM Market of the
London Stock Exchange and is incorporated and domiciled in the British Virgin
Islands. The address of its registered office is PO Box 173, Kingston
Chambers, Road Town, Tortola, British Virgin Islands. The UK registered office
The Blade, Abbey Square, Reading, RG1 3BE.
2. Basis of preparation
These interim statements have been prepared on a basis consistent with
International Financial Reporting Standards (IFRS). They do not contain all
the information required for full financial statements and should be read in
conjunction with the consolidated financial statements of the Group as at and
for the year ended 31 March 2022. These interim financial statements do not
constitute statutory accounts within the meaning of the Companies Act.
The interim financial information has not been reviewed nor audited by the
auditors. The interim financial information was approved by the Board of
Directors on 7 December 2022. The information for the year ended 31 March 2022
is extracted from the statutory financial statements for that year which have
been reported on by the Group's auditors and delivered to the Registrar of
Companies. The audit report was unqualified.
The accounting policies applied by the Group in these interim financial
statements are the same as those applied by the Group in its consolidated
financial statements for the year ended and as at 31 March 2022. The interim
report is the responsibility of, and has been, approved by the Directors. The
Directors are responsible for preparing the interim financial statements in
accordance with the AIM rules for Companies.
Going Concern
These interim results have been prepared on a going concern basis, which
notwithstanding the loss incurred for the six-month period to 30 September
2022.
The Group made an adjusted EBITDA loss (which most closely correlates its cash
performance over time) from continuing operations in six months to 30
September 2022 of £1.1 m (2021: £0.4m). This was due to the planned
significant investment in sales and marketing expansion which has consequently
built a strong pipeline of prospective business, and which is now beginning to
convert into contract wins of monitoring contracts with their predictable
recurring revenue and cash profiles. This provides the board with further
confidence in its projections.
Cash balances on 30 September stood at £1.95m (2021: £0.51m) and these are
estimated by the Board as sufficient to achieve break even and cash generation
on its organic plans. The Group received the final £0.345m of cash
consideration in early October 2022, which has been held in escrow since the
disposal of Assynt in October 2021. The Group has a normal working capital
position and furthermore HMRC are fully in terms and are being paid on the
usual periodic basis.
£1.5m of the cash balance is reserved for use on acquisitions and
investments, but under the loan agreement, this can be used for
other reasonable business purposes, with BOOST&Co's consent. The Group
is focused on organic growth as opposed to acquisitive growth, and therefore
believes that these funds can be better deployed to support this strategy.
As part of its routine detailed forecasting processes (which includes stress
testing), it is possible that the Group may need to use some of these funds to
support continued investment in growth. All tests show that the Group can
move into profitability within its existing resources, whilst maintaining a
normal working capital profile and repayment schedule.
Should the Group significantly under achieve against its revenue and growth
targets, the Board routinely prepares contingency plans to deal with lower
performance and any ensuing shortfall in working capital. These typically
entail cost reductions mainly around overheads and as well as in discretionary
expansion expenditure. Other measures could involve the disposal of assets.
Furthermore, the Group could seek, as in previous years, the support of
investors to raise additional debt or equity. Based upon the above, the
Directors have a reasonable expectation that the Group has adequate working
capital for the twelve months following the date of signing these interim
results. For this reason, they continue to adopt the going concern basis in
preparing these interim results.
In accordance with IFRS 5 'Non-current assets held for sale and discontinued
operations', the net results of Assynt Group Limited and subsidiaries
("Assynt") which was disposed of on 6 October 2021 are presented within
discontinued operations in the consolidated statement of comprehensive income
and the assets and liabilities of these operations are presented separately on
the consolidated statement of financial position.
3. Critical accounting estimates and judgements
The preparation of financial information in accordance with generally accepted
accounting practice, in the case of the Group being IFRS as adopted by the
European Union, requires the Directors to make estimates and judgements that
affect the reported amount of assets, liabilities, income and expenditure and
the disclosures made in the financial statements. Such estimates and
judgements must be continually evaluated based on historical experience and
other factors, including expectations of future events. The significant
judgements made by management in applying the Group's accounting policies were
the same as those applied in the last annual financial statements for the year
ended 31 March 2022.
4. Segmental reporting
The Directors consider that the Group's internal financial reporting is
organised along product and service lines and, therefore, segmental
information has been presented about business segments. The segmental analysis
of the Group's business was derived from its principal activities as set out
below. The information below also comprises the disclosures required by IFRS 8
in respect of products and services as the Directors consider that the
products and services sold by the disclosed segments are essentially similar
and, therefore, no additional disclosure in respect of products and services
is required. The other segment below and overleaf is made up of the parent
company's administrative operation.
Reportable segments
The reportable segment results for the period ended 30 September 2022 are as
follows:
Continuing operations
£
Professional services 1,302,749
Monitoring managed services 485,490
Revenues from external customers 1,788,239
Gross margin 647,520
Segment reported EBITDA (1,094,491)
Highlighted income (23,652)
Segment adjusted EBITDA (1,118,143)
Finance costs - net (166,840)
Depreciation and amortisation (218,057)
Share option expense (8,500)
Segment profit/(loss) for the period (1,487,888)
The reportable segment results for the period ended 30 September 2021 were as
follows:
Continuing operations Discontinued operations Total
£ £ £
Assynt report - 972,633 972,633
Professional services 1,407,699 21,102 1,428,801
Monitoring managed services 387,193 - 387,193
Revenues from external customers 1,794,862 993,735 2,788,597
Gross margin 718,920 224,698 943,618
Segment Reported EBITDA (409,817) (25,912) (435,729)
Highlighted Costs 24,083 2,181 26,264
Segment adjusted EBITDA (385,734) (23,731) (409,465)
Finance costs - net (36,071) (241) (36,312)
Depreciation and amortisation (241,618) (13,247) (254,865)
Share option expense (20,000) - (20,000)
Segment profit/(loss) for the period (707,506) (39,400) (749,906)
The reportable segment results for the year ended 31 March 2022 are as
follows:
Continuing Discontinued Total
£ £ £
Professional services 2,683,204 21,102 2,704,306
Monitoring managed services 859,104 - 859,104
Assynt report & embedded analysts - 1,005,191 1,005,191
Revenues from external customers 3,542,308 1,026,293 4,568,601
Gross margin 1,442,576 224,270 1,666,846
Cyber operating expenses (1,598,143) - (1,598,143)
Corporate operating expenses (1,009,132) - (1,009,132)
Segment reported EBITDA (1,164,699) (29,664) (1,194,363)
Highlighted income (107,285) - (107,285)
Segment adjusted EBITDA (1,271,984) (29,664) (1,301,648)
Finance expense-net (201,464) (241) (201,705)
Depreciation and amortisation (465,417) (13,378) (478,795)
Impairment of goodwill (130,347) - (130,347)
Share option expense (17,839) - (17,839)
Profit on sale of discontinued operations - 3,498,102 3,498,102
Segment loss before tax for the year (1,979,766) 3,454,819 1,475,053
Segment assets and liabilities as at 30 September 2022 and capital expenditure
for the period then ended are as follows:
Continuing operations
£
Contract assets 47,448
Other assets 6,495,064
Contract liabilities (deferred income) 529,209
Other liabilities 3,143,822
Capital expenditure - tangible 31,344
Segment assets and liabilities as at 30 September 2021 and capital expenditure
for the period then ended are as follows:
Continuing operations Discontinued operations Total
£ £ £
Contract assets 2,688 - 2,688
Other assets 5,346,712 250,535 5,597,247
Contract liabilities (deferred income) 386,677 442,927 829,604
Other liabilities 2,582,280 180,736 2,763,016
Capital expenditure - tangible 3,987 - 3,987
Segment assets and liabilities as at 31 March 2022 and capital expenditure for
the year then ended are as follows:
Continuing operations
£
Contract assets 27,100
Other assets 8,296,487
Contract liabilities (deferred income) 529,496
Other liabilities 3,418,222
Capital expenditure - Tangible 13,315
5. Earnings per share
Basic earnings per share is calculated by dividing the profit attributable to
equity holders of the Company by the weighted average number of ordinary
shares in issue during the year.
6 Months to 6 Months to Year to
30 Sep 2022 30 Sep 2021 31 Mar 2022
(Unaudited) (Unaudited) (Audited)
Loss attributable to equity holders of the company (£) (1,487,888) (745,846) 1,484,582
Weighted average number of ordinary shares in issue 526,421,185 526,001,185 526,181,678
Basic loss per share (pence per share) (0.28) (0.14) 0.28
As at 30 September 2022, the potentially dilutive ordinary shares were
anti-dilutive because the Group was loss-making.
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