REG - FD Technologies PLC - Interim Results
26/11/2024 07:00
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RNS Number : 5859N FD Technologies PLC 26 November 2024
FD Technologies plc
26(th) November 2024
Results for the six months ended 31 August 2024 ("H1 FY25")
H1 performance in line with expectations
Confident in KX FY25 and medium-term outlook
£120m to be returned to shareholders
Financial highlights
- KX revenue increased 5% to £39.5m, with annual recurring revenue
("ARR") up 8% reported, or 10% at constant currency, to £74.6m (H1 FY24:
£69.3m)
- KX annual contract value ("ACV") added at £7.4m (H1 FY24:
£6.9m), in line with the expected range of £6-8m.
- Net revenue retention ("NRR") of 110% reported (H1 FY24: 112%), or
112% at constant currency.
- First Derivative revenue of £78.8m (H1 FY24: £89.1m) declined by
2% compared to H2 FY24, reflecting a resilient performance against anticipated
ongoing challenging market conditions.
- Group revenue declined 7% to £118.2m (H1 FY24: £126.8m),
reflecting the 12% decline in revenue from First Derivative partially offset
by the robust growth in KX.
- Group adjusted EBITDA was £10.5m (H1 FY24: £14.2m), reflecting
the revenue performance and increased investment in R&D, go-to-market and
people to support our growth ambitions for KX.
Strategic highlights
- Divestment of First Derivative for £230m is expected to complete
on 2 December.
- KX will become the Group's sole continuing operation, retaining
approximately £54m of the £205m net divestment proceeds, and, after the
repayment of £32m of debt outstanding at the completion date, a balance of
around £120m cash will be returned to shareholders.
- The Board will provide additional details regarding the mechanism
by which the capital will be returned to shareholders following completion of
the transaction. We expect this to be a tender offer, supplemented by a
special dividend depending on the take up of the tender.
- Consequently, KX will have the necessary funding to achieve
financial stability and to invest in growth and profitability, driving
accelerating constant currency ARR growth and achieving positive cash EBITDA
in FY27.
Outlook
Our pipeline is strong for the second half and into next year, with a healthy
mix of expansion and new opportunities across Capital Markets, Aerospace &
Defence, and Semiconductor Manufacturing.
Consequently, the Board remains confident in its FY25 outlook for KX of
£16-18 million ACV added, with 11-15% growth in ARR(1). Looking ahead, we
expect our compound annual growth rate(2) in ARR to accelerate to c.25% and to
achieve positive cash EBITDA by FY27.
Seamus Keating, CEO, commented:
"We have made significant strategic and operational progress in the first
half, with the divestment of First Derivative and strong execution in KX.
Following the completion of the sale of First Derivative, we expect to return
cash to shareholders, in line with our disciplined approach to capital
allocation, and KX will be a pure-play, high-growth software business; fully
funded and well-positioned to capitalise on the significant and growing global
market opportunity."
(1) Growth in ARR is stated net of churn. As previously flagged, in the
current year we expect churn of 8-10% reducing in FY26 and beyond.
(2) Growth rates are at constant currency.
Financial summary
Six months to end August 2024 2023* Change
Revenue £118.2m £126.8m (7%)
Gross profit £52.1m £52.3m 0%
(Loss)/profit before tax from continuing operations (£11.1m) (£1.6m) N/A
Reported diluted (LPS)/EPS (54.6p) (22.2p) N/A
Net debt** £19.8m £10.8m 84%
Adjusted performance measures
Adjusted EBITDA*** £10.5m £14.2m (26%)
Adjusted diluted (LPS)/EPS (8.1p) 4.4p N/A
* H1 FY24 has been restated excluding discontinued operations (MRP)
** Excluding lease obligations
*** Adjusted for share-based payments and restructure and non-operational costs
For further information, please contact:
FD Technologies plc +44(0)28 3025 2242
Seamus Keating, Chief Executive Officer www.fdtechnologies.com (http://www.firstderivatives.com)
Ryan Preston, Chief Financial Officer
Derek Brown, Head of Investor Relations
Investec Bank plc +44 (0)20 7597 5970
(Nominated Adviser and Broker)
Carlton Nelson
Virginia Bull
Goodbody (Euronext Growth Adviser and Broker) +353 1 667 0420
Don Harrington
Jason Molins
Tom Nicholson
J.P. Morgan Cazenove (Broker) +44 (0)20 3493 8000
James A. Kelly
Mose Adigun
FTI Consulting +44 (0)20 3727 1000
Matt Dixon fdtechnologies@fticonsulting.com
Dwight Burden
Victoria Caton
About KX
KX is on a mission to make AI a commercial reality for the many by addressing
data challenges that impede deployment at scale. By simultaneously ingesting
and analysing high volumes of historical and real-time data, KX's AI-ready
analytical database enables organizations to unlock the full value of their
data to accelerate innovation and make faster, more confident decisions.
KX is the world's most performant, cost-effective and energy-efficient
analytical database, delivering advanced data algorithms, insights and
analytics at unmatched scale and speed. KX is trusted by the world's top
investment banks, Aerospace and Defence, high-tech manufacturing and health
and life sciences organizations and operates across North America, Europe, and
Asia Pacific.
Results presentation
A presentation for analysts will be held at 9.30am today, following which a
recording of the presentation will be available on the Group's website.
Business Review
Further strategic progress
We have continued to drive strong strategic progress across the Group in the
first half, particularly with respect to our strategy to maximise shareholder
value by separating the Group's three businesses.
Firstly, the all-share merger of MRP and CONTENTgine created pharosIQ, a
leading B2B demand generation services provider, of which the Group continues
to own 49% as an associate investment. The business has seen a significant
improvement in bookings during our fiscal Q3 and is expected to become
profitable this year.
Secondly, the proposed sale of First Derivative to EPAM is on track to
complete on 2 December, following our announcement on 14 November that all
closing conditions had been satisfied. EPAM is a global professional services
company and will provide First Derivative a platform with the scale and
resources to support its growth ambitions. We also anticipate potential
synergies for KX through a further strengthening of the partnership between
the First Derivative Business and KX.
Finally, the continuing Group will solely consist of the KX business, which
provides a robust, scalable, and efficient database and analytics engine,
ideal for time-oriented data and AI use cases, and trusted by many of the
world's top enterprises.
KX is funded and positioned for success
KX will retain £54m from the proceeds of the sale of First Derivative,
comprising:
1. c.£30-35m to achieve financial stability, with sufficient capital to
support the business until it reaches positive cash EBITDA in FY27, in line
with guidance.
2. c.£20m to invest in growth and profitability, driving accelerating
constant currency ARR growth.
Consequently, KX is now a pure-play, high-growth software business, fully
funded and well-positioned to execute against its strategy to capitalise on
the significant and growing global market opportunity. For KX to deliver
sustainable growth, management priorities include investing in an efficient
and effective go-to-market strategy, focused on repeatable use cases in
established markets and leveraging partners to target new verticals.
With the successful execution of this strategy, KX constant currency ARR is
expected to accelerate to c.25% CAGR, with the business achieving positive
cash EBITDA in FY27.
Return of excess cash
KX will become the Group's sole continuing operation, retaining approximately
£54m of the £205m net divestment proceeds, and, after the repayment of £32m
of debt outstanding at the completion date, a balance of around £120m cash
will be returned to shareholders. The Board will provide additional details
regarding the mechanism by which the capital will be returned to shareholders
following completion of the transaction. We expect this to be a tender offer,
supplemented by a special dividend depending on the take up of the tender.
KX Empowering Smarter, Faster Decision-Making with Data and AI
In the first half of the year, we strengthened KX's position as the
high-performance analytical database for the AI era. Our customers'
competitive advantage depends on leveraging ever-growing amounts of data to
make better, faster decisions. In today's digital landscape, organizations are
moving from static, code-based systems to dynamic, learning models where data
itself drives innovation and competitiveness.
However, the latency, complexity, and costs of traditional technology
solutions can hinder innovation, especially when deploying at scale. Through
our investments in AI, KX's offering has been expanded to uniquely enable the
simultaneous ingestion and analysis of structured and unstructured time-based
data at extreme scale and in real time.
At the heart of our approach is the concept of the 'AI Factory'. This
framework integrates data collection, pipelines, analytics, and algorithm
development into a seamless process that automates and optimizes
decision-making. This empowers our customers to uncover relationships,
patterns, and behaviours that other technologies cannot deliver as effectively
or cost-efficiently, forming the technology platform for them to deploy better
and more automated decision-making as part of their own AI Factory.
Together with partners such as NVIDIA and leading cloud service providers (AWS
and Microsoft), we are working on solving some of our customers' highest-value
challenges, cementing KX as a critical part of the AI Factory for
state-of-the-art data management, model development, experimentation, and
deployment.
KX delivered a strong performance against a focused strategy
KX delivered a robust commercial performance in the first half of the year,
generating an incremental £7.4 million in Annual Contract Value (ACV), in
line with our guidance range of £6-8 million. Our strategic focus on
delivering advanced data and analytics capabilities into high-growth sectors
is yielding significant wins across our core verticals.
We continue to see strong interest and adoption of our KX Insights products
and are expanding our user base through tools that support algorithm
development and deployment, such as PyKX, SQL, and Dashboards. Momentum is
building for our new AI capabilities among both existing customers and new
users trialing our offerings.
Our partnerships and ecosystem expansion are key to our strategy:
· Cloud Service Providers: Achieved wins with AWS
FinSpace and Microsoft-enabling customers to deploy KX solutions seamlessly
on leading cloud platforms.
· Ecosystem Expansion: Launched accelerators
with ICE, Databricks, and Snowflake to broaden our market reach and
launched initiatives with NVIDIA to support customers in building their
advanced AI capabilities.
· Strategic Partnerships: Collaborated with industry leaders to
enhance our offerings, including securing significant new logos at global
semiconductor companies through our partnerships with Applied
Materials and Synopsys.
Confidence in the outlook for KX
Our pipeline is strong for the second half and into next year, with a healthy
mix of expansion and new opportunities across Capital Markets, Aerospace &
Defence, and Semiconductor Manufacturing.
Consequently, the Board remains confident in its FY25 outlook for KX of
£16-18 million ACV added, with 11-15% growth in ARR(1). Looking ahead, we
expect our compound annual growth(2) rate in ARR to accelerate to c.25% and to
achieve positive cash EBITDA by FY27.
(1) Growth in ARR is stated net of churn. As previously flagged, in the
current year we expect churn of 8-10% reducing in FY26 and beyond.
(2) Growth rates are at constant currency
First Derivative - a resilient H1 performance
During H1, as anticipated the First Derivative business faced a challenging
trading environment with ongoing macroeconomic uncertainties and continued
cautious spending trends among capital markets consulting customers. First
Derivative revenue was £78.8m in H1 (H1 FY24: £89.1m), a 2% decline on the
result reported for H2 FY24 of £80.6m and reflecting a resilient performance
against a difficult market backdrop.
Sustainability
We strive to ensure that sustainability is at the centre of decision-making
processes. Our sustainability strategy has three pillars: People, the
Environment, and Communities. We intend to progress further in these core
focus areas during the fiscal year.
We shall continue to empower our people to succeed by further developing our
culture of learning and development. We plan to roll out talent programmes
across our organisation, identifying and fostering our top talent. We also
plan to introduce leadership training programmes to ensure a holistic approach
to developing both our future and current leaders. We continue to embed an
inclusive culture by supporting our networks.
Principal risks and uncertainties
The principal risks and uncertainties relating to the Group's operations for
the next six months are considered to remain consistent with those disclosed
in the Group's Annual Report and Accounts 2024. Please refer to pages 23 to 28
thereof which can be found at
www.fdtechnologies.com/investor-relations/news-results/results-centre/.
Financial review
Revenue and margins
The table below shows an analysis of Group performance by business
contribution.
H1 FY25 H1 FY24*
Group KX First Group KX First Group change
Derivative Derivative
£m £m £m £m £m £m
Revenue 118.2 39.5 78.8 126.8 37.7 89.1 (7%)
Cost of sales (66.2) (6.6) (59.6) (74.5) (8.5) (66.0) (11%)
Gross profit 52.1 32.8 19.2 52.3 29.2 23.1 (0%)
Gross margin 44% 83% 24% 41% 78% 26%
R&D expenditure (15.9) (15.9) (0.0) (15.2) (14.7) (0.5) 5%
R&D capitalised 11.4 11.4 0.0 12.6 12.1 0.4 (9%)
Net R&D (4.5) (4.5) 0.0 (2.6) (2.6) 0.0 72%
Sales and marketing costs (18.9) (15.9) (3.0) (19.2) (14.8) (4.4) (2%)
Adjusted admin expenses (18.2) (9.2) (9.0) (16.3) (7.0) (9.3) 11%
Adjusted EBITDA 10.5 3.3 7.2 14.2 4.8 9.4 (26%)
Adjusted EBITDA margin 9% 8% 9% 11% 13% 11%
* FY24 has been restated excluding discontinued operations (MRP)
Group revenue declined 7%, 6% at constant currency, to £118.2m (H1 FY24:
£126.8m). Within the sales mix, KX revenue rose 5% to £39.5m, whilst revenue
from the First Derivative business declined by 12% to £78.8m, reflecting the
anticipated ongoing challenging market conditions.
The gross profit margin increased to 44% (H1 FY24: 41%), with a 5ppt
improvement at KX partly offset by a 2ppt decline at First Derivative. We
achieved an adjusted EBITDA of £10.5m in the first half of the year (H1 FY24:
£14.2m).
For the first half of the year, First Derivative has been reported as a
continuing operation, but for the full year, post the transaction completing,
we shall report the business as a discontinued operation.
KX
KX total Financial services Industry
H1 FY25 H1 FY24 Change H1 FY25 H1 FY24 Change H1 FY25 H1 FY24 Change
£m £m £m £m £m £m
Revenue 39.5 37.7 5% 30.4 29.9 2% 9.1 7.8 17%
Recurring 37.2 32.9 13% 28.8 26.9 7% 8.4 6.0 41%
Perpetual 0.3 0.6 (46%) 0.1 0.1 93% 0.2 0.6 (59%)
Total software 37.5 33.5 12% 28.9 27.0 7% 8.6 6.5 32%
Services 2.0 4.2 (53%) 1.5 2.9 (50%) 0.5 1.2 (61%)
Gross profit 32.8 29.2 12%
Adjusted EBITDA 3.3 4.8 (31%)
Cash EBITDA (8.1) (7.3) (11%)
* Revenue from perpetual license sales relates to continuing customer
engagements established prior to our decision in 2021 to focus exclusively on
subscription sales for new customers, and now represents less than 1% of KX
revenue.
KX revenue increased 5% to £39.5m, with recurring revenue booked in the
period up 13% to £37.2m, whilst ARR was up 8% to £74.6m. Services revenue
continued to decline, to £2.0m in the period, demonstrating that our software
is increasingly efficient to implement but also reflecting our increased focus
on selling software rather than consulting services.
Annual contract value added was £7.4m (H1 FY24: £6.9m), in line with the
guidance range of £6-8m discussed at the time of our annual results in May.
This result reflected our success in expanding within existing accounts and
adding new logos in key new verticals.
Financial services revenue was £30.4m (H1 FY24: £29.9m), with recurring
revenue in the vertical increasing 7% to £28.8m. We continue to see good
adoption of KDB Insights by existing and new financial services customers, who
find its performance, ease of use, rapid time to value, and native integration
with important developer languages, such as Python and SQL, highly attractive.
We had several new customer wins in H1 in our focused market segments
including wins with strategic partners.
The growth in our Industry segment revenue was encouraging, with revenue
increasing by 17% to £9.1m and recurring revenue up by 41% to £8.4m. This
growth was principally driven by deals in Aerospace and Defence and
semiconductor manufacturing.
Performance metrics H1 FY25 H1 FY24 Change
Annual recurring revenue (ARR) £m 74.6 69.3 8%
Net revenue retention (NRR) 110% 112%
Gross margin 83% 78%
R&D expenditure as % of revenue 40% 39%
Sales and marketing spend as % of revenue 40% 39%
Adjusted admin expenses as % of revenue 23% 19%
Adjusted EBITDA margin 8% 13%
Annual recurring revenue (ARR) increased by 8% to £74.6m (H1 FY24: £69.3m),
with net revenue retention (NRR) of 110% (H1 FY24: 112%), or 112% at constant
currency. ARR is converted at the exchange rate prevailing at the end of the
period, whereas NRR is converted based on the average rate for the period.
In line with our strategy, we continued to prioritise our investments in
R&D and go-to-market.
First Derivative
H1 FY25 H1 FY24 Change
£m £m
Revenue 78.8 89.1 (12%)
Gross profit 19.2 23.1 (17%)
Adjusted EBITDA 7.2 9.4 (23%)
First Derivative revenues declined 12% to £78.8m (H1 FY24: £89.1m),
reflecting the anticipated ongoing challenging market conditions with customer
caution and the lengthened sales cycles we reported in the previous period
continuing.
Performance metrics H1 FY25 H1 FY24
Gross margin 24% 26%
Adjusted EBITDA margin 9% 11%
Through a continued focus on cost control, we successfully mitigated some of
the impact of the revenue decline on the First Derivative gross margin and
adjusted EBITDA margin, which was also of benefit to the overall Group
performance.
Group performance
Adjusted EBITDA
The table below provides a reconciliation of operating loss to adjusted
EBITDA. Notably, we incurred £4.5m in restructuring and non-operational costs
in the period primarily relating to the organisational restructure and the
divestment of the FD division (£2.8m), as well as restructuring within the KX
division (£1.7m). The decline in share-based payment costs reflected options
lapsing. The increase in depreciation and amortisation reflects the expected
flow of previously capitalised R&D expenditure.
H1 FY25 H1 FY24*
£m £m
Operating (loss) / profit (6.7) 1.5
Restructure and non-operational costs 4.9 2.1
Share-based payment and related costs 0.8 1.5
Depreciation and amortisation 11.5 9.0
Adjusted EBITDA 10.5 14.2
*FY24 has been restated excluding discontinued operations (MRP)
Loss before tax
The adjusted loss before tax was £3.1m (H1 FY24: profit £3.4m), principally
reflecting the lower adjusted EBITDA and the increase in software amortisation
costs flowing through from previous years' investment in R&D.
The Group reported a loss before tax of £11.1m (H1 FY24: £1.6m). In addition
to those factors that influenced the adjusted EBITDA, outlined above, this
result was also affected by the inclusion of the share of loss of associate
related to MRP. In H1 we continued to make progress with aligning capitalised
R&D costs and amortisation of software development costs, with
amortisation now c80% of capitalised R&D costs (H1 FY24: 52%).
The reconciliation of adjusted EBITDA to reported loss before tax from
continuing operations is provided below.
H1 FY25 H1 FY24*
£m £m
Adjusted EBITDA 10.5 14.2
Adjustments for:
Depreciation (2.6) (2.5)
Amortisation of software development costs (8.8) (6.3)
Net financing costs (2.2) (2.0)
Adjusted (loss)/profit before tax (3.1) 3.4
Adjustments for:
Amortisation of acquired intangibles (0.1) (0.2)
Share based payment and related costs (0.8) (1.5)
Restructure and non-operational costs (4.9) (2.1)
Loss on foreign currency translation (0.4) (1.0)
Share of loss of associate (1.9) -
Profit on disposal of associate - 0.1
Net financing costs - (0.2)
Reported loss before tax from continuing operations (11.1) (1.6)
* Reported loss before tax has been restated excluding loss before tax from
discontinued operations of £3.7m (H1 FY24: £2.9m)
(Loss)/earnings per share
The table below provides a reconciliation of the calculation of the adjusted
loss after tax of £2.3m, which compares with an adjusted profit of £1.2m in
H1 FY24. As a result, the adjusted diluted loss per share for the period is
8.1 pence compared to the adjusted diluted earnings per share of 4.4 pence in
H1 FY24.
H1 FY25 H1 FY24
£m £m
Reported loss before tax from continuing operations (11.1) (1.6)
Tax (0.7) (1.1)
Loss from discontinued operations (3.7) (3.5)
Reported loss after tax (15.4) (6.2)
Adjustments from loss before tax (as per the table above) 8.0 5.0
Tax effect of adjustments (0.6) (1.1)
Loss from discontinued operations 3.7 3.5
Discrete tax items 2.1 -
Adjusted (loss)/profit after tax (2.3) 1.2
Weighted average number of ordinary shares (diluted) 28.2m 28.1m
Reported LPS (diluted) (54.6p) (22.2p)
Adjusted (LPS)/EPS (diluted) (8.1p) 4.4p
Cash generation and net debt (excluding lease liabilities)
The Group generated £12.2m of cash from operating activities, representing an
116% conversion of adjusted EBITDA (H1 FY24: 57%). We continue to focus on
efficient cash collection and overall working capital management.
At the end of the period, we had a net debt position of £19.8m. We summarise
the factors impacting the movement in net debt (excluding lease liabilities)
in the table below. For the period, these included an improvement in cash
collection, lower capitalised intangible assets, a loss from disposal of
associate and a higher debt interest charge.
H1 FY25 H1 FY24
£m £m
Opening net debt (excluding lease liabilities) (14.4) (3.7)
Cash generated from operating activities before non-operational IT expenses 12.6 10.6
Non-operational IT expenses (0.4) (2.5)
Cash generated from operating activities 12.2 8.1
Taxes paid (1.0) (2.3)
Capital expenditure: property, plant and equipment (0.3) (0.3)
Capital expenditure: intangible assets (11.4) (12.6)
(Acquisition)/disposal of associate and investment in other investments (1.7) 2.8
Issue of new shares 0.8 0.1
Interest, foreign exchange and other (3.8) (2.8)
Closing net debt (excluding lease liabilities) (19.8) (10.8)
Our banking facility comprises a £130m revolving credit facility, with an
interest rate payable of SONIA/SOFR plus a margin range of 1.85% to 2.85%.
Definition of terms
The Group uses the following definitions for its key metrics:
Annual recurring revenue (ARR): the value at the end of the accounting period
of recurring software revenue to be recognised in the next twelve months.
Gross annual recurring revenue (Gross ARR): ARR excluding churn.
Annual contract value (ACV): the sum of the value of each customer contract
signed during the year divided by the number of years in each contract.
Net revenue retention rate (NRR): is based on the actual revenues in the
quarter annualised forward to twelve months and compared to the revenue from
the four quarters prior. The customer cohort is comprised of customers in the
quarter that have generated revenue in the prior four quarters.
Adjusted admin expenses: is a measure used in internal management reporting
which comprises administrative expenses per the statement of comprehensive
income of £35.0m (H1 FY24: £28.3m) adjusted for depreciation and
amortisation of £11.5m (H1 FY24: £9.0m), share based payments and related
costs of £0.8m (H1 FY24: £1.5m), restructure and non-operational costs of
£4.9m (H1 FY24: £2.1m), impairment loss on trade and other receivables
£0.5m (H1 FY23: £0.6m) and other income £0.2m (H1 FY23: £0.0m).
Consolidated statement of comprehensive income (unaudited)
Six months ended 31 August
2024 2023
restated*
Note £'000 £'000
Continuing operations 3 & 4
Revenue 118,245 126,758
Cost of sales (66,188) (74,461)
Gross profit 52,057 52,297
Operating costs
Research and development costs (15,890) (15,177)
- of which capitalised 11,427 12,579
Sales and marketing costs (18,911) (19,233)
Administrative expenses (35,031) (28,350)
Impairment loss on trade and other receivables (530) (593)
Total operating costs (58,935) (50,774)
Other income 210 7
Operating (loss)/profit (6,668) 1,530
Finance income 77 40
Finance expense (2,238) (2,238)
Loss on foreign currency translation (352) (1,035)
Net finance costs (2,513) (3,233)
Share of loss from associate (1,893) -
Profit on disposal of associate - 88
Loss before taxation (11,074) (1,615)
Income tax expense 6 (662) (1,116)
Loss for the period from continuing operations (11,736) (2,731)
Discontinued operations
Loss after tax for the period from discontinued operations (3,658) (3,497)
Loss for the period attributable to owners of the Company (15,394) (6,228)
Pence Pence
Loss per share 7
Basic (54.6) (22.2)
Diluted (54.6) (22.2)
* The comparative figures have been restated to reflect the classification of
MRP business as a discontinued operation. The respective notes have also been
restated on this basis. Further detail can be found in note 15.
Consolidated balance sheet (unaudited)
As at As at As at
31 August
31 August
29 February
2024
2023
2024
Note £'000 £'000
Assets
Property, plant and equipment 12,499 22,151 14,581
Intangible assets and goodwill 153,556 176,987 154,040
Other financial assets 6,728 8,337 7,642
Investment in associates 8 12,278 - -
Trade and other receivables 1,939 2,211 2,146
Deferred tax assets 10,635 21,601 11,029
Non-current assets 197,635 231,287 189,438
Trade and other receivables 52,947 73,364 63,170
Current tax receivable 9,409 7,113 10,249
Cash and cash equivalents 18,667 22,887 20,787
Assets classified as held for sale - - 22,879
Current assets 81,023 103,364 117,085
Total assets 278,658 334,651 306,523
Equity
Share capital 9 140 140 140
Share premium 105,171 104,119 104,120
Share option reserve 20,510 20,418 19,811
Fair value reserve (1,649) 530 (723)
Currency translation adjustment reserve (3,559) (119) 441
Retained earnings 8,576 63,381 23,195
Equity attributable to owners of the Company 129,189 188,469 146,984
Liabilities
Loans and borrowings 10 46,023 45,135 44,086
Trade and other payables 11 3,848 4,522 4,498
Deferred tax liabilities 10,987 16,337 11,562
Non-current liabilities 60,858 65,994 60,146
Loans and borrowings 10 2,447 3,307 2,466
Trade and other payables 11 37,180 32,912 33,690
Deferred income 42,667 35,794 43,176
Current tax payable 91 1,044 1,075
Employee benefits 6,226 7,131 6,349
Liabilities classified as held for sale - - 12,637
Current liabilities 88,611 80,188 99,393
Total liabilities 149,469 146,182 159,539
Total equity and liabilities 278,658 334,651 306,523
Consolidated statement of changes in equity (unaudited)
Six months ended 31 August
Share Share Share Fair value reserve Currency translation adjustment Retained Total
capital
premium
option
earnings
equity
reserve
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 March 2024 140 104,120 19,811 (723) 441 23,195 146,984
Total comprehensive income for the period
Loss for the period - - - - - (15,394) (15,394)
Other comprehensive income
Net exchange loss on net investment in foreign subsidiaries - - - - (4,087) - (4,087)
Net exchange gain on hedge of net investment in foreign subsidiaries - - - - 862 - 862
Transfer - - - - (775) 775 -
Net change in fair value of equity investments at FVOCI - - - (926) - - (926)
Total comprehensive income for the period - - - (926) (4,000) (14,619) (19,545)
Transactions with owners of the Company
Tax relating to share options - - (101) - - - (101)
Exercise of share options - 793 - - - - 793
Issue of shares - 258 - - - - 258
Share-based payment charge - - 800 - - - 800
Balance at 31 August 2024 140 105,171 20,510 (1,649) (3,559) 8,576 129,189
Share Share Share Fair value reserve Currency translation adjustment Retained Total
capital
premium
option
earnings
equity
reserve
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 March 2023 140 103,789 18,974 3,002 5,354 69,609 200,868
Total comprehensive income for the period
Loss for the period - - - - - (6,228) (6,228)
Other comprehensive income
Net exchange loss on net investment in foreign subsidiaries - - - - (6,371) - (6,371)
Net exchange gain on hedge of net investment in foreign subsidiaries - - - - 898 - 898
Net change in fair value of equity investments at FVOCI - - - (2,472) - - (2,472)
Total comprehensive income for the period - - - (2,472) (5,473) (6,228) (14,173)
Transactions with owners of the Company
Tax relating to share options - - (56) - - - (56)
Exercise of share options - 63 - - - - 63
Issue of shares - 267 - - - - 267
Share-based payment charge - - 1,500 - - - 1,500
Balance at 31 August 2023 140 104,119 20,418 530 (119) 63,381 188,469
Consolidated cash flow statement (unaudited)
Six months ended 31 August
2024 2023
£'000 £'000
Cash flows from operating activities
Loss for the period (15,394) (6,228)
Adjustments for:
Net finance cost 2,512 3,910
Depreciation of property, plant and equipment 2,631 3,229
Amortisation of intangible assets 8,915 7,070
Equity-settled share-based payment transactions 800 1,500
Loss on disposal of equity investments 3,658 -
Profit on disposal of associate - (88)
Share of loss from associate 1,893 -
Loss on disposal of fixed assets - -
Other income (209) -
Grant income (1) (8)
Tax expense 654 1,721
5,459 11,106
Changes in:
Trade and other receivables 8,291 15,482
Trade and other payables and deferred income (1,555) (17,192)
Cash generated from operating activities 12,195 9,396
Taxes paid (1,042) (2,386)
Net cash from operating activities 11,153 7,010
Cash flows from investing activities
Interest received 77 40
(Acquisition)/disposal of associate (1,732) 3,005
Investment in other investments - (249)
Acquisition of property, plant and equipment (334) (279)
Acquisition of intangible assets (11,427) (13,730)
Net cash used in investing activities (13,416) (11,213)
Cash flows from financing activities
Proceeds from issue of share capital 793 64
Drawdown of borrowings 8,000 -
Repayment of borrowings (3,791) (4,907)
Payment of lease liabilities (1,527) (1,645)
Interest paid (2,254) (2,526)
Loan issued to associate (434) -
Net cash from/(used in) financing activities 787 (9,014)
Net decrease in cash and cash equivalents (1,476) (13,217)
Cash and cash equivalents at 1 March 20,787 36,905
Effects of exchange rate changes on cash held (644) (801)
Cash and cash equivalents at 31 August 18,667 22,887
Cash and cash equivalents at end of year (continuing operations) 18,667 19,359
Cash and cash equivalents at end of year (discontinued operations) - 3,528
Notes to the Interim Results
1. General information
FD Technologies plc ("FD Technologies", the "Company" or the "Group") is a
public limited company incorporated and domiciled in Northern Ireland. The
Company's registered office is 3 Canal Quay, Newry BT35 6BP. This condensed
consolidated interim financial information was approved for issue by the Board
of Directors on 25 November 2024.
This condensed consolidated interim financial information does not comprise
statutory financial statements within the meaning of section 434 of the
Companies Act 2006. Statutory financial statements for the year ended 29
February 2024 were approved by the Board of Directors on 20 May 2024 and
delivered to the Registrar of Companies. The auditors reported on those
accounts: their report was unqualified, did not draw attention to any matters
by way of emphasis and did not contain a statement under section 498(2) or (3)
of the Companies Act 2006.
2. Accounting policies
Basis of Preparation
The annual financial statements for the Group will be prepared in accordance
with United Kingdom adopted International Financial Reporting Standards. This
condensed consolidated interim financial information for the 6 months ended 31
August 2024 has been prepared in accordance with United Kingdom adopted IAS
34, 'Interim financial reporting'. The interim report does not include all
the notes of the type normally included in an annual financial report.
Accordingly, this report is to be read in conjunction with the annual
financial statements for the year ended 29 February 2024, which have been
prepared in accordance with UK-adopted IFRSs.
This condensed consolidated interim financial information is unaudited and has
not been reviewed by the Company's Auditors. Except as described below they
have been prepared on accounting bases and policies that are consistent with
those used in the preparation of the financial statements of the Company for
the year ended 29 February 2024.
Going concern
The directors are satisfied that the Group has sufficient resources to
continue in operation for the foreseeable future, a period of not less than 12
months from the date of this report. Accordingly, we continue to adopt the
going concern basis in preparing the condensed financial statements.
Changes in accounting policies
The following standards, amendments and interpretations were effective for
accounting periods beginning on or after 1 January 2024 and these have been
adopted in the Group financial statements where relevant:
· Amendments to IAS 1 Presentation of Financial Statements and IFRS
Practice Statement 2
· Amendments to IAS 7 Statement of Cash Flows
· Amendments to IFRS 7 Financial Instruments: Disclosures: Supplier
finance arrangements
· Amendments to IFRS 16
There are no other standards that are not yet effective and that would be
expected to have a material impact on the entity in the current or future
reporting periods and on foreseeable future transactions.
Critical accounting estimates and judgements
The critical accounting judgements and key sources of estimation uncertainty
are consistent with the Group financial statements for the year to 29 February
2024 and no additional new uncertainties or estimation uncertainty have
arisen.
Information about critical judgements in applying accounting policies that
have the most significant impact on the amounts recognised in the financial
statements are as follows:
· In determining capitalised internally developed software costs,
management are required to apply judgement and evaluate the technical and
commercial feasibility of each product, and the ability to yield future
economic benefits, and assess the likelihood of success and ability of the
Group to complete each product. Judgements are used in determining what costs
meet the requirement for capitalisation under IAS 38.
· Management applies judgement in the recognition of revenue,
determining when performance obligations are satisfied and control
transferred. For software products provided as an annual license, including
the right to regular upgrades, judgement is required when assessing whether
the annual license is a separate performance obligation from the provision of
upgrades to the customer. Management has assessed that the ongoing updates and
upgrades to the software are fundamental to the value of the software and that
without these updates the value of the software will substantially deteriorate
over time. Therefore, the annual license and the updates and upgrades are
combined as one performance obligation and revenue is recognised over the life
of the license as the service is delivered.
• The Group and Company have incurred sales and marketing costs and
software development costs in developing the KX business. As a result, the
Group and Company have tax losses being carried forward which contribute to
the Group and Company's deferred tax asset balances. Management have
forecasted that the Company and Group will generate future taxable profits
from the KX and FD trades against which these deferred tax assets will be
utilised.
The estimates that have a significant risk of causing a material adjustment to
the carrying amounts of assets and liabilities within the next financial year
are discussed below:
· Under IFRS, goodwill on acquisitions is not amortised but is tested
for impairment on an annual basis. Management has assessed goodwill for
impairment based on the projected profitability of the individual
cash-generating unit to which the goodwill relates. No impairments have been
identified. Other intangibles are being amortised and tested for impairment if
an indicator of impairment is identified.
• Management has estimated the fair value of equity investments and
convertible loans. Management has reviewed recent market activity and has
applied a discounted cash flow valuation technique to assess the fair value of
the assets as at year end considering the forecast revenue and EBITDA,
together with forecast exit value applying market multiples, discounted using
a risk-adjusted discount rate.
Management has assessed that there are no other estimates or uncertainties as
regards the future that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities recognised in the
financial statements.
Use of non-GAAP measures - Adjusted EBITDA
The Group believes that the consistent presentation of adjusted earnings
before interest, tax, depreciation and amortisation (EBITDA), adjusted
effective tax rate, adjusted basic (loss)/earnings per share and adjusted
diluted (loss)/earnings per share provides additional useful information to
shareholders on the underlying trends and comparable performance of the Group
over time. Adjusted EBITDA is defined as results from operating activities
before restructure and non-operational costs, share based payments and related
costs, depreciation of property, plant and equipment and amortisation of
intangible assets, and non-recurring dividend income from investments.
Restructure and non-operational costs relate to items that are considered
significant in size and non-operational in nature and include one-off costs
relating to restructuring and to address legacy employee tax liabilities while
on assignment and costs associated with the management of our equity
investment portfolio. The Group uses adjusted EBITDA as an underlying measure
of its performance. A reconciliation between GAAP and underlying measures is
set out in note 5 Adjusted EBITDA.
3. Segmental Reporting
Business segments
The Group is organised into operating segments (as identified under IFRS 8
"Operating Segments") and generates revenue through the following activities:
• KX - high-performance analytical database for AI-driven
innovation
• First Derivative (FD) - driving digital transformation in
financial services and capital markets
• MRP (discontinued) - Technology-enabled services for
enterprise demand generation
The chief operating decision maker monitors the operating results of segments
separately in order to allocate resources between segments and to assess
performance. Segment performance is predominantly evaluated based on operating
profit before restructure and non-operational costs, share based payment and
related costs, depreciation and amortisation of intangible assets ("adjusted
EBITDA"). These costs are managed on a centralised basis and therefore these
items are not allocated between operating segments for the purpose of
presenting information to the chief operating decision maker and accordingly
are not included in the detailed segmental analysis. Intersegment revenue is
not material and thus not subject to separate disclosure.
Information about reportable segments
KX FD Total MRP (discontinued)
H1 2025 H1 2024 H1 2025 H1 2024 H1 2025 H1 2024 H1 2025 H1 2024
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Revenue by segment
Revenue 39,484 37,675 78,761 89,082 118,245 126,758 - 15,714
Gross profit 32,850 29,202 19,207 23,094 52,057 52,297 - 7,062
Adjusted EBITDA 3,318 4,807 7,213 9,374 10,531 14,181 - (169)
Restructure and non-operational costs (4,853) (2,141) - (757)
Share based payment and related costs (800) (1,500) - -
Depreciation and amortisation (11,465) (8,798) - (1,219)
Amortisation of acquired intangibles (81) (212) - (70)
Operating (loss)/profit (6,668) 1,530 - (2,215)
Net finance costs (2,513) (3,233) - (676)
Profit on disposal of associate - 88 - -
Loss on disposal of investment - - (3,658) -
Share of loss from associate (1,893) - - -
Loss before taxation (11,074) (1,615) (3,658) (2,891)
Geographical location analysis
Revenues Non-current assets
H1 2025 H1 2024 H1 2025 H1 2024
£'000 £'000 £'000 £'000
UK 35,040 37,838 1,217 1,860
EMEA 25,940 22,837 14,788 15,990
The Americas 46,507 52,197 63,402 86,583
Asia Pacific 10,758 13,886 107,593 105,253
Total 118,245 126,758 187,000 209,686
4. Revenue
Disaggregation of revenue
KX FD Total
H1 2025 H1 2024 H1 2025 H1 2024 H1 2025 H1 2024
£'000 £'000 £'000 £'000 £'000 £'000
Type of good or service
Sale of goods - perpetual 332 614 - - 332 614
Sale of goods - recurring 37,199 32,881 - - 37,199 32,881
Rendering of services 1,953 4,180 78,761 89,082 80,714 93,262
39,484 37,675 78,761 89,082 118,245 126,758
Timing of revenue recognition
At a point in time 332 614 - - 332 614
Over time 39,152 37,061 78,761 89,082 117,913 126,143
39,484 37,675 78,761 89,082 118,245 126,758
5. Adjusted EBITDA
H1 H1
2025 2024 (restated)
£'000 £'000
Operating (loss)/profit (6,668) 1,530
Restructure and non-operational costs 4,853 2,141
Share based payment and related costs 800 1,500
Depreciation and amortisation 11,546 9,010
10,531 14,181
6. Tax Expense
The total tax expense for the six months ended 31 August 2024, including
discrete items is £662k (H1 FY24: £1,116k). This tax charge equates to an
effective tax rate of (6.0%) (H1 FY24: (69.1%)) on continuing operations.
In the period ended 31 August 2024, the group did not recognise any deferred
tax asset in respect of tax losses arising in the period, which reduced the
tax expense for the period by £1,549k.
From 1 April 2024 the enacted rate of corporation tax is 25%. Deferred tax
balances have been calculated at this rate.
7. a) Loss per ordinary share - from continuing and discontinued
operations
Basic
The calculation of basic loss per share at 31 August 2024 was based on the
loss attributable to ordinary shareholders of £15,394, (H1 FY24: £6,228k),
and a weighted average number of ordinary shares in issue of 28,170k (H1 FY24:
28,071k).
H1 H1
2025 2024
Pence Pence
per share per share
Basic loss per share (54.6) (22.2)
Loss per share from continuing operations at 31 August 2024 is 41.7p (H1 FY24:
9.7p), based on the loss attributable to ordinary shareholders from continuing
operations £11,736k (H1 FY24: £2,731k).
Diluted
The calculation of diluted loss per share at 31 August 2024 was based on the
loss attributable to ordinary shareholders of £15,394k (2024: £6,228k) and a
weighted average number of ordinary shares after adjustment for the effects of
all dilutive potential ordinary shares of 28,170k (H1 FY24: 28,071k).
H1 H1
2025 2024
Pence Pence
per share per share
Diluted loss per share (54.6) (22.2)
Diluted loss per share from continuing operations at 31 August 2024 is 41.7p
(H1 FY24: loss per share 9.7p), based on the loss attributable to ordinary
shareholders from continuing operations £11,736k (H1 FY24: £2,731k).
In accordance with IAS 33, share options in issue are anti-dilutive meaning
there is no difference between basic and diluted loss per share in H1 FY25 and
H1 FY24.
7. b) Loss before tax per ordinary share - from continuing and
discontinued operations
Loss before tax per share is based on loss before taxation of £14,732k (H1
FY24: £4,507k). The number of shares used in this calculation is consistent
with note 7(a) above.
H1 H1
2025 2024
Pence Pence
per share per share
Basic loss before tax per ordinary share (52.2) (16.1)
Diluted loss before tax per ordinary share (52.2) (16.1)
Reconciliation from loss per ordinary share to loss before tax per ordinary
share:
H1 H1
2025 2024
Pence Pence
per share per share
Basic loss per share (54.6) (22.2)
Impact of taxation charge 2.4 6.1
Basic loss before tax per share (52.2) (16.1)
Diluted loss per share (54.6) (22.2)
Impact of taxation charge 2.4 6.1
Diluted loss before tax per share (52.2) (16.1)
Loss before tax per share is presented to facilitate pre-tax comparison
returns on comparable investments.
7. c) Adjusted (loss)/earnings after tax per ordinary share
The reconciliation of adjusted earnings after tax per share is shown below:
H1 H1
2025 2024
(restated)
£'000 £'000
Loss after tax (15,394) (6,228)
Amortisation of acquired intangibles after tax effect 81 186
Share based payments after tax effect 800 1,133
Restructure and non-operational costs after tax effect 4,350 1,733
Profit on disposal of associate after tax effect - (88)
Share of loss of associate after tax effect 1,893 -
Loss on foreign currency translation after tax effect 263 781
Finance costs after tax effect - 208
Discrete items for tax 2,066 -
Loss after tax from discontinued operations 3,658 3,497
Adjusted (loss)/profit after tax (2,284) 1,222
The number of shares used in this calculation is consistent with note 7(a)
above.
H1 H1
2025 2024
(restated)
Pence Pence
per share per share
Adjusted basic (loss)/earnings after tax per ordinary share (8.1) 4.4
Adjusted diluted (loss)/earnings after tax per ordinary share (8.1) 4.4
8. Investment in associate
At 1 March 2024, the Group held a 49% interest in pharosIQ following the
disposal of the MRP Group as referenced in note 16. Consideration was in the
form of shares and a loss on disposal of £3,658k was recognised in the
current period.
At the reporting date the investment in associate was carried at £12,278k and
included £434k loan advance repayable within 6 months.
9. Share capital
During the period the Group issued 131,485 shares as part of share-based
compensation for employees and remuneration. These increased the number of
shares in issue from 28,088,156 as at 29 February 2024 to 28,219,641.
The holders of ordinary shares are entitled to receive dividends as declared
from time to time and are entitled to one vote per share at meetings of the
Company.
10. Loans and borrowings
31 August 2024 29 February 2024
£'000 £'000
Current liabilities
Secured bank loans - -
Lease liabilities 2,447 2,466
2,447 2,466
Non-current liabilities
Secured bank loans 38,456 35,200
Lease liabilities 7,567 8,886
46,023 44,086
Our banking facility comprises a £130m revolving credit facility, with an
interest rate payable of SONIA/SOFR plus a margin range of 1.85% to 2.85%.
11. Trade and other payables
31 August 2024 29 February 2024
£'000 £'000
Current liabilities
Trade payables 4,416 8,014
Other payables 15,306 13,044
Accruals 15,841 10,925
Government grants 1,617 1,707
37,180 33,690
31 August 2024 29 February 2024
£'000 £'000
Non-current liabilities
Government grants 3,848 4,498
3,848 4,498
12. Financial instruments
Fair values
a) Accounting classifications and fair values
Group
The following table shows the carrying amounts and fair values of financial
assets and liabilities. The carrying amount of all financial assets and
liabilities not measured at fair value is considered to be a reasonable
approximation of fair value.
Carrying value
FVPL FVOCI Financial Other Total Fair value
assets at financial
amortised liabilities
cost
31 August 2024 £'000 £'000 £'000 £'000 £'000 £'000 Level
Financial assets measured at fair value
Equity securities - 980 - - 980 980 1
Equity securities - 5,748 - - 5,748 5,748 3
Associate - 12,278 - - 12,278 12,278 3
Convertible loans 83 - - - 83 83 3
83 19,006 - - 19,089 19,089
Financial assets not measured at
fair value
Trade and other receivables(1) - - 49,630 - 49,630 ( )
Cash and cash equivalents(1) - - 18,667 - 18,667 ( )
- - 68,297 - 68,297
Financial liabilities not measured at
fair value
Secured bank loans(1) - - - (38,456) (38,456) ( )
Trade and other payables(1) - - - (59,417) (59,417) ( )
- - - (97,873) (97,873)
(1) Fair value not disclosed as the carrying amounts are considered to be a
reasonable approximation of fair value.
Carrying value
FVPL FVOCI Financial Other Total Fair value
assets at financial
amortised liabilities
cost
29 February 2024 £'000 £'000 £'000 £'000 £'000 £'000 Level
Financial assets measured at fair value
Equity securities - 962 - - 962 962 1
Equity securities - 6,680 - - 6,680 6,680 3
Convertible loans 83 - - - 83 83 3
83 7,642 - - 7,725 7,725
Financial assets not measured at
fair value
Trade and other receivables(1) - - 60,188 - 60,188 ( )
Cash and cash equivalents(1) - - 20,787 - 20,787 ( )
- - 80,975 - 80,975
Financial liabilities not measured at
fair value
Secured bank loans(1) - - - (35,200) (35,200) ( )
Trade and other payables(1) - - - (61,348) (61,348) ( )
- - - (96,548) (96,548)
(1) Fair value not disclosed as the carrying amounts are considered to be a
reasonable approximation of fair value.
b) Measurement of fair values
Group
Outside of external market events that showed a material change to the fair
value of investment valuations, as reflected in the table below, no other
indicators have arisen from the valuation model to indicate a change to the
measurement of fair values of investments.
Reconciliation of Level 3 fair value:
Group
Convertible Unquoted
loans equities
£'000 £'000
Balance at 1 March 2024 83 6,680
Purchases - -
Disposals - -
Adjustments to fair value - (932)
Foreign exchange gain - -
Balance at 31 August 2024 83 5,748
Convertible Unquoted
loans equities
£'000 £'000
Balance at 1 March 2023 283 8,470
Transfer to Level 1 1,500 250
Disposals - -
Adjustments to fair value - (3,740)
Transfers (1,700) 1,700
Foreign exchange gain - -
Balance at 29 February 2024 83 6,680
13. Subsequent Events Note
On 7 October 2024 following conclusion of the structural review process and
after extensive discussions with shareholders, the Board announced the
proposed divestment of the First Derivative business to EPAM Systems Inc.
(EPAM) for an enterprise value of £230m on a cash-free debt-free basis, with
this divestment now expected to complete on 2 December 2024. On 7 October 2024
the First Derivate business met the criteria of an asset held for sale, and
following completion of the deal the First Derivative business will be
presented as discontinued operations at the year end. The First Derivative
business is reported under IFRS 8 as a separate reportable segment and
presented in note 3. EPAM is a leading digital transformation services and
product engineering company. Since 1993, it has used its software engineering
expertise to become a leading global provider of digital engineering, cloud
and AI-enabled transformation services.
14. Interim Report
Copies can be obtained from the Company's head and registered office: 3 Canal
Quay, Newry, Co. Down, BT35 6BP and are available to download from the
Company's web site www.fdtechnologies.com (http://www.fdtechnologies.com) .
15. Responsibility Statement
The Directors confirm that to the best of their knowledge:
a) the condensed set of financial statements has been prepared in accordance
with UK-adopted IAS 34 'Interim Financial Reporting';
b) the interim management report includes a fair review of the information
required by DTR 4.2.7R (indication of important events and their impact during
the first six months and description of principal risks and uncertainties for
the remaining six months of the year); and
c) the interim management report includes a fair review of the information
required by DTR 4.2.8R (disclosure of related parties' transactions and
changes therein).
The Directors are responsible for the maintenance and integrity of the
Company's website. Legislation in the United Kingdom governing the preparation
and dissemination of financial statements may differ from legislation in other
jurisdictions.
The Directors of FD Technologies plc are listed in the Company's Report and
Accounts for the year ended 29 February 2024. A list of current Directors is
maintained on the FD Technologies plc website: www.fdtechnologies.com
(http://www.fdtechnologies.com) .
16. Discontinued operations
On 1 March 2024, the Group announced that it had agreed to an all-share merger
of its MRP business with CONTENTgine. FD Technologies Group own 49% of the
combined entity, which has been recorded as an associate investment during H1
2025. The MRP business was classified as a discontinued operation as at 31
August 2024, as such balances relating to MRP have been restated as
discontinued operations for H1 2024 comparatives. Currency translation gains
associated with the MRP business total £775k and have been transferred to
retained earnings on disposal.
Results of discontinued operations
The results of MRP group as a discontinued operation are as below:
H1 2025 H1 2024
£'000 £'000
Revenue - 15,714
Expenses - (17,929)
Results from operating activities - (2,215)
Net finance costs - (676)
Loss before tax from discontinued operations - (2,891)
Attributable income tax - (606)
Loss on disposal of investment (3,658) -
Loss from discontinued operations, net of tax (3,658) (3,497)
(attributable to the owners of the Group)
Cash flows used in discontinued operations
H1 2025 H1 2024
£'000 £'000
Net cash outflow from operating activities - 1,248
Net cash outflow from investing activities - (1,176)
Net cash outflow from financing activities - (566)
Net cash outflows for the year - (494)
Effects of exchange rate changes on cash held - (95)
Opening cash and cash equivalents - 4,117
Closing cash and cash equivalents - 3,528
17. Forward looking statements
The financial information contained in this announcement has not been audited.
Certain statements made in this announcement are forward-looking statements.
Undue reliance should not be placed on such statements, which are based on
current expectations and are subject to a number of risks and uncertainties
that could cause actual results to differ materially from any expected future
results in forward-looking statements.
The Company accepts no obligation to publicly revise or update these
forward-looking statements or adjust them to future events or developments,
whether as a result of new information, future events or otherwise, except to
the extent legally required.
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