REG - Deepverge PLC - Trading Update

DeepvergeAnnouncement

05/08/2022 07:00

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RNS Number : 0065V  Deepverge PLC  05 August 2022

5 August 2022

 

DeepVerge PLC

 

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

 

Trading Update

H1 unaudited revenues grew 95% to £6.47m (2021 H1: £3.32m)

Full year revenues, weighted to H2, expected to exceed £18m

 

DeepVerge plc (AIM: DVRG), announces that the Company's unaudited revenues in
H1 2022 grew by 95% to £6.47m (H1 2021: £3.32m). Orders to August of £8.87m
are booked for delivery in H2 (H2 2021: £3.91m). The Board conservatively
expects revenue to be in excess of £18m for the full year to 31 December
2022, which is below current market expectations, leading to a smaller
projected EBITDA figure, a modest reduction in gross margins and a slight
increase in overheads.

 

Group

·      H1 Group revenues up 95% to £6.47m (2021 H1: £3.32m)

·      Orders up 128% for delivery in H2 exceed £8.87m (2021: £3.91m)

·      Full year sales weighted to H2 are expected to exceed £18m
(2021: £9.3m)

 

Modern Water

·      £6.5m of orders secured to end of July, up 116% in one month
(June 30 2022 RNS: £3m)

·      In addition, multiple £1m+ installation bids remain outstanding
for site installations

 

Labskin and Skin Trust Club

·      £1m+ Skin Trust Club sales in H1

·      27,000 club members

·      42.5% with skin conditions

·      24 skin care clients joined the marketplace

·      300+ products added to marketplace

·      200+ products to be added shortly

·      84,000+ visits to site per month and growing

·      6% conversion rate to Skin Trust Club Membership

 

Recently, the Company has been remarkably successful in converting its
significant prospect pipeline into firm orders, for delivery in 2022, as
evidenced by £6.5m worth of deals in China, South Asia, India and Africa (RNS
30 June i , 18 July ii  and 1 August iii ). However, there remains uncertainty
as to whether the conversion rate, over the next few months, of prospects into
orders for delivery this calendar year will meet previously expected levels.

 

Gerard Brandon, CEO DeepVerge plc, commented:

"H1 2022 has been another exceptional fast growth period for DeepVerge. Modern
Water is in the right place at the right time, to deal with the global water
crisis. Also, Skin Trust Club has hit a rich vein of consumer desire to take
control by personalising the skin care industry which can be seen by the rush
of skin care products being added to the Skin Trust Club marketplace, that
only began in Q1 this year.

 

Although full year 2022 revenues might be lower than previously guided, sales
and orders continue to rapidly expand across all divisions in the current
macroeconomic and geopolitical environment. We have taken a prudent stance to
guide the market on year-end revenue and will provide further updates as
necessary."

 

 

 DeepVerge plc                                   Gerard Brandon, CEO         +44 (0) 7340 055 648

 SPARK Advisory Partners Limited                 Neil Baldwin/Andrew Emmott  +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.

 i  https://polaris.brighterir.com/public/deepverge_plc/news/rns/story/xo15n1r

 ii 
https://polaris.brighterir.com/public/deepverge_plc/news/rns/story/wvjql0w

 iii 
https://polaris.brighterir.com/public/deepverge_plc/news/rns/story/wvjlmzw

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