Half-year report
31/01/2024 10:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240131:nGNE992xY8&default-theme=true
DXS INTERNATIONAL PLC
(AQSE: DXSP)
HALF YEAR RESULTS
DXS International plc ("DXS" or the "Company"), the digital clinical decision
support company, is pleased to provide shareholders with its unaudited interim
results for the half year ending 31 October 2023.
Financial highlights:
* Revenue increased by 2.5% to £1,693,910 (2022 - £1,652,467).
* Core recurring revenue model remains resilient.
* (Loss)/Profit after tax of (£121,562) compared to £27,656 in 2022, a
decrease of £149,218. This decrease is mainly due to increased amortisation,
increased interest charges and reduced tax benefit.
* Amortisation £570,007 compared to (2022 - £354,363). This 61% increase was
in line with our policy of amortising R&D development since 2019.
* Cash at bank at the period end was £386,122 (2022 - £371,978).
* R&D tax credits on ordinary activities down by 14% due to change in HMRC
allowances.
Operational highlights:
* New SMART Referral solution prototype with customers receives glowing
response. Please see https://www.youtube.com/watch?v=vyxx3ixgCgw.
* An Independent Health Economics Study completed demonstrating the value of
DXS SMART Referrals Solution with a potential budget impact estimation of £44
million net saving to the NHS. This compelling evidence is proving
particularly persuasive with potential customers.
* Formal i4i Hypertension evaluation completed showing ability of the
ExpertCare solution to significantly improve efficiencies for managing high
blood pressure.
Post Period Events:
* Post period and on 30 November 2023, the Company announced that it had
jointly with Health Innovate East, won a UK Innovate Grant to the value of
£409,000 to help accelerate ExpertCare’s route to market. The grant
includes the addition of Cholesterol and Diabetes to the technology platform.
This 18 month project commenced on 1 December 2023.
Outlook
Implementation of our pipeline business is being hindered as the NHS Central
Funding pot, on which our solutions largely depend, remains frozen whilst
awaiting internal NHS renewal processes to be finalised. Until this happens
our ability to achieve previous market guidance on turnover, which was
anticipated at £3.8 million by April 2024 and £4.7 million by 2024 calendar
year end, will be delayed. The Company will give more detailed guidance on
this during April.
As a counter to this we have been innovating new ways of securing NHS
contracts.
* Gaining evidence evaluated by third parties proving the ROI to the NHS.
* Offering a Risk Sharing and Reward model to the NHS by receiving significant
upside if we achieve the NHS desired targets.
* Providing services to overcome the NHS resource shortage challenge.
In pivoting as described above, we are entering into formal collaborations
with organisations that currently have the skill and accreditation to work
with us.
David Immelman, Chief Executive of DXS, commented:
“Although gaining sales growth remains frustratingly slow, we are more
confident than ever that we have exceptionally effective solutions for helping
the NHS to resolve their acknowledged problems and that this can be
demonstrated by provable data:
* £ Millions saved yearly.
* Tens of thousands of patient lives saved.
* Helping with the resource shortage.
* Contributing to the NHS Net Zero Targets.
Our team remain filled with conviction and enthusiasm for what we have to
offer and as a result we are finalising a set of Management Incentive and
Option Scheme to replace the one that expired last year. In addition, we are
looking at introducing a wider staff incentive share scheme.”
The Directors of DXS International plc accept responsibility for this
announcement. This announcement contains information which, prior to its
disclosure, was inside information as stipulated under Regulation 11 of the
Market Abuse (Amendment) (EU Exit) Regulations 2019/310 (as amended).
INTERIM RESULTS to 31 OCTOBER 2023
CONSOLIDATED INCOME STATEMENT
for the six month period ended 31 October 2023
Unaudited Group 6 Months ended 31 Oct 2023 Unaudited 6 Months ended 31 Oct 2022 Audited Year to 30 April 2023
Continuing Operations Continuing Operations Continuing Operations
£ £ £
Turnover 1,693,910 1,652,467 3,391,219
Cost of Sales (205,274) (229,308) (466,722)
Gross Profit 1,488,636 1,423,159 2,924,497
Administration Costs (1,132,280) (1,175,224) (2,261,897
Depreciation and Amortisation (570,007) (354,363) (705,253)
Operating (loss) (213,651) (106,428) (42,653)
Sundry Income 7 - 5
(213,644) 106,428 (42,648)
Interest payable and similar expenses (44,828) (24,841) (55,058)
Loss on ordinary activities before taxation (258,472) (131,269) (97,706)
Tax on profit on ordinary activities 136,910 158,925 322,897
Profit for the period (121,562) 27,656 225,191
========= ========= =========
Profit per share*
* basic (0.2p) 0.1p 0.5p
* fully diluted (0.2p) 0.1p 0.5p
Weighted average number of shares 62,051,036 48,253,416 48,253,416
========= ========= =========
STATEMENT of FINANCIAL POSITION
as at 31 October 2023
Unaudited Group at 31 Oct 2023 Unaudited Group at 31 Oct 2022 Audited Group at 30 April 2023
£ £ £
Fixed Assets
Intangible Assets 5,942,117 5,499,920 5,860,209
Tangible Assets 565 1,868 1,122
_________ _________ _________
5,942,682 5,501,788 5,861,331
_________ _________ _________
Current assets
Debtors Amounts falling due within one year 580,317 487,179 791,321
Cash at bank and in hand 386,122 398,745 371,078
_________ _________ _________
966,439 885,924 1,163,299
Creditors: amounts falling due within one year (1,189,392) (839,344) (865,475)
_________ _________ _________
Net current assets / (liabilities) (222,953) 46,580 297,824
_________ _________ _________
Total assets less current liabilities 5,719,729 5,548,368 6,159,155
Creditors:
amounts falling due after more than one year (232,595) (607,095) (720,446)
Deferred income (424,762) (548,975) (848,876)
_________ _________ _________
5,062,372 4,392,298 4,589,833
========= ========= =========
Capital and reserves
Called up share capital 211,273 159,246 159,246
Share Premium 3,213,395 2,671,321 2,671,321
Share option reserve 9,451 173,808 21,382
Retained earnings 1,628,253 1,387,923 1,737,884
_________ _________ _________
Shareholders’ Funds 5,062,372 4,392,298 4,589,833
========= ========= =========
STATEMENT of CASH FLOWS
Six months ended 31 October 2023
Unaudited Group Six months ended 31 Oct 2023 Unaudited Group Six months ended 31 Oct 2022 Audited Group year ended 30 April 2023
£ £ £
Cash flow from operating activities 448,174 (135,175) 549,803
Interest paid (44,828) (24,841) (55,058)
Sundry Income 7 - 5
R&D tax credit - 323,925 323,897
_________ _________ _________
Cash flow from operating activities 403,353 163,909 818,647
_________ _________ _________
Cash flow from investing activities
Payments to acquire intangible fixed assets (651,358) (669,967) (1,380,617)
Proceeds in respect of tangible fixed assets - 144 361
_________ _________ _________
(651,358) (669,823) (1,380,256)
_________ _________ _________
Cash flow from investing activities
Proceeds of share issue 500,000
Repayment of long term loans (237,851) (47,720) (268,792)
Advance of long term loans - 500,000 750,000
_________ _________ _________
262,149 452,280 (481,208)
_________ _________ _________
Net increase / (decrease) in cash and cash equivalents 14,144 (53,634) (80,401)
Cash and Cash equivalents at 30 April 2023 371,978 452,379 452,379
_________ _________ _________
Cash and Cash equivalents at 31 October 2023 386,122 398,745 371,978
========= ========= =========
Cash and Cash equivalents consists of:
Cash at bank and in hand 386,122 398,745 371,978
========= ========= =========
Net Debt Reconciliation
Current Debt Non Current Debt Cash Total
£ £ £
At 30 April 2021 (207,139) (449,125) 792,318 136,054
Cash flow (85,993) 117,795 (339,939) (308,137)
_________ _________ _________ _________
At 30 April 2022 (293,132) (331,330) 452,379 (172,083)
Cash flow (50,458) (359,012) (80,401) (489,871)
_________ _________ _________ _________
At 30 April 2023 (343,590) (690,342) 371,978 (661,954)
Reallocation of long term to current debt (250,000) 250,000
Share Issue as reduction of loans to Directors and senior staff 94,101 94,101
Cash flow (63,997) 207,747 14,144 157,894
_________ _________ _________ _________
At 31 October 2023 (563,486) (232,595) 386,122 (409,959)
========= ========= ========= =========
The above figures have not been reviewed by the company's auditors Crowe U.K.
LLP.
The Directors of DXS International plc accept responsibility for this
announcement
Contacts:
David Immelman (Chief Executive) DXS International plc 01252 719800 david@dxs-systems.com
https://www.dxs-systems.co.uk
Corporate Advisor
City & Merchant David Papworth 020 7101 7676
Corporate Broker
Hybridan LLP Claire Louise Noyce 020 3764 2341
Notes to Editors
About DXS:
DXS International presents up to date treatment guidelines and
recommendations, from Clinical Commissioning Groups and other trusted NHS
sources, to doctors, nurses and pharmacists in their workflow and during the
patient consultation. This effective clinical decision support ultimately
translates to improved healthcare outcomes delivered more cost effectively and
which should significantly contribute towards the NHS achieving its projected
efficiency savings
Recent news on DXS International
See all newsDXS International Plc (AQSE: DXSP): Notice of AGM
NHS Announces £838m GP IT Framework
DXS INTERNATIONAL PLC (AQSE: DXSP) ANNUAL RESULTS FY 30 APRIL 2026
DXS INTERNATIONAL PLC (AQSE: DXSP): Timing of FY Results to 30 April 2026
Brief: DXS International Expects To Deliver Small Profit For FY, Improving From Prior Year Loss