REG - Deepverge PLC - 2022 Revenue Update

DeepvergeAnnouncement

09/01/2023 07:00

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RNS Number : 0134M  Deepverge PLC  09 January 2023

 

9 January 2023

 

DeepVerge PLC

 

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

 

2022 Revenue Update

 

DeepVerge plc (AIM: DVRG), announces that the Company's unaudited revenues for
2022 were approximately £17.2m, slightly below market expectations, although
£18m would have been achieved but for a significant element of recently
signed contracts now falling for delivery in the current year. This still
represents a significant increase year on year (2021 Revenue (audited) £9.3m,
2020 Revenue (audited) £4.4m) despite some delays into 2023 due to supply
chain issues. Licence revenues featured strongly as the Group moves
progressively from small and medium ticket equipment sales to larger £1m+
data and AI focused sales through partners.

 

For the past 24 months, Modern Water, a business unit of DeepVerge, has been
focused on building high-value solutions for monitoring water and wastewater
using advanced software and data automation underpinned by its established
equipment range.

 

In addition, the Company is moving its Labskin business deeper into data and
AI with the creation of Skin Trust Club, with its focus on a personalised
skincare platform for partners and building a large skin microbiome database
for its corporate customers.

 

These moves are in parallel with a refocusing of the business on tier-one
partnerships that sell and support DeepVerge solutions in their core
markets where they are dominant or major participants.

 

This has led to significant contracts and order book with a wide range of
government institutions in multiple territories. These include US Government
agencies, IARPA, NOAA, and Georgia Port Authority in the United States where
DeepVerge is focusing Labskin, Skin Trust Club and environmental microbiome
sequencing efforts. The Modern Water business is increasingly focused on the
developing world with business and multiple orders across the Middle East,
China, South and Central Asia and North Africa providing solutions in markets
that are under pressure from pollution and water scarcity.

 

The accelerated Group restructuring announced on 22 November 2022 has created
separate businesses with clear domain focus, with the personnel and resources
necessary to support the growth being experienced and anticipated.  The
restructuring also brought certain key logistical processes in-house, better
to serve customers and partners and to protect against worldwide supply chain
shocks. As well as focus, this restructuring is also expected to deliver
considerable cost savings in 2023 of up to £2m.

 

Dr Nigel Burton, interim CEO DeepVerge plc, commented:

"The Group's major achievements of 2022 were:

·      Intensifying the focus on bigger ticket, higher value, technology
and data-based sales;

·      Gaining the confidence of partners and their customers to use our
solutions;

·    Putting in place the personnel and resource structures needed to
support and develop this type of expanding business; and

·      Bedding in reference sites across the globe which showcase the
solutions we can deliver to customers.

These achievements, and the successful fund raise in November 2022, provide
solid foundations for 2023. I'd like to thank our shareholders, customers,
partners and employees for their support in 2022."

 

 DeepVerge plc                                   Nigel Burton, Interim CEO  +44 (0) 1904 40 4036

 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

 

Market Abuse Regulation (MAR) Disclosure

 

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.

 

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.

 

 

 

 

 

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