REG - Deepverge PLC - 2022 revenue update - revision

DeepvergeAnnouncement

17/04/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230417:nRSQ3460Wa&default-theme=true

RNS Number : 3460W  Deepverge PLC  17 April 2023

17 April 2023

 

DeepVerge plc

 

("DeepVerge" or "the Company" or "the Group")

 

2022 revenue update - revision

 

DeepVerge (AIM: DVRG), the environmental and life science group of companies
that develops and applies AI and IoT technology to analytical instruments for
the analysis and identification of bacteria, virus and toxins, provides the
following trading update.

On 9 January 2023 the Company announced that it expected 2022 (unaudited)
revenues to be approximately £17.2m. Following the board change announced on
6 February 2023, and the appointment of a new Chief Financial Officer on 7
February 2023, the new management team has undertaken a comprehensive review
of all major contracts.

Whilst further analysis continues, based on the current available information
and analysis to date, it is clear that revenues for a number of contracts have
been incorrectly recognised in excess of works completed and therefore
revenues for 2022 under the relevant accounting standard IFRS15 are expected
to be approximately 45-50% of the £17.2m revenue figure provided by the
previous executive management team and notified to the market.

The vast majority of the revenue shortfall in 2022 is now expected to be
recognised in 2023, although some is unlikely to be realised.

Following the above review, the Company can confirm that the current order
book for Modern Water and Glanaco exceeds £10m, all of which is expected to
be deliverable, and recognised as turnover, in 2023 and 2024. Further
contracts are being sought, and, if tendering is successful, will be announced
in due course, with some expected imminently.

The current cash balance is approximately £1m, and although requiring working
capital to be tightly managed is expected to remain sufficient for the Company
to continue as a going concern. The Company is exploring funding options
including trade finance as a stronger balance sheet would enable the Company
to accelerate delivery of some existing contracts and increase confidence in
seeking new business.

The Company will make further announcements in due course.

Ross Andrews, Chairman, commented:

"Whilst it is extremely disappointing that 2022 revenues are likely to be so
far below the figures provided by the previous executive management team, I'm
confident that the new management has robust plans in place to deliver the
order book during 2023 and 2024."

 

 DeepVerge plc                                   Nigel Burton, Interim CEO  +44 (0) 7785 234447
 SPARK Advisory Partners Limited                 Neil Baldwin               +44 (0) 113 370 8974

 (Nominated Adviser)
 Turner Pope Investments (TPI) Limited (Broker)  Andy Thacker/James Pope    +44 (0) 20 3657 0050

 

 

About DeepVerge plc (www.deepverge.com)

DeepVerge is an environmental and life science group of companies that
develops and applies AI and IoT technology to analytical instruments for the
analysis and identification of bacteria, virus and toxins; Utilising
artificial intelligent data analytics to scientifically prove the impact of
skincare product claims on skin.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK
VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH
LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED.  ON
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS
INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCSFSEFMEDSEEL