REG - Fonix PLC - Interim Results
18/03/2025 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250318:nRSR0153Ba&default-theme=true
RNS Number : 0153B Fonix PLC 18 March 2025
18 March 2025
Fonix plc
("Fonix" or the "Company")
Interim Results for the six months ended 31 December 2024
Driving Growth Through Innovation and International Expansion
Fonix, the UK focused mobile payments and messaging company, is pleased to
announce its unaudited interim results for the six months to 31 December 2024
(the "Period").
Financial Highlights
H1 FY25 H1 FY24 Change
Gross profit £9.8m £9.2m +6.5%
Adjusted EBITDA(1) £7.8m £7.3m +6.8%
Interim DPS 2.90p 2.60p +11.5%
Adjusted PBT(2) £7.8m £7.4m +5.4%
Adjusted EPS(3) 6.2p 5.7p +8.8%
Underlying cash at period end(4) £11.0m £11.2m -1.8%
Operational Highlights
· Fonix has secured contracts with each of the major mobile network
operators in Portugal, marking a significant milestone in its international
expansion. A strategic partnership with NOS, one of Portugal's leading telecom
providers, further strengthens the Company's market presence and enables the
delivery of the Campaign Manager product to NOS' extensive network of
broadcast customers.
· In the UK, interactive services have been launched with News UK
across its talkSPORT and Virgin Radio brands, reinforcing relationships with
major media partners.
· Fonix has signed a two-year agreement with Bauer to remain its
exclusive provider of premium SMS services in the UK, underscoring the
strength of Fonix's partnership with key customers.
· The Company's product portfolio has expanded with the launch of two
innovative solutions designed to unlock new revenue opportunities from
existing customers from early summer 2025:
○ PayFlex: A cutting-edge tool that recovers failed mobile payments
by integrating Apple Pay, Google Pay, and PayPal.
○ DonationPortal: A dedicated solution for charities, offering
branded donation pages, streamlined Gift Aid processing, and real-time
analytics to enhance donor engagement.
· Investment in organic international expansion is accelerating, with
early discussions underway with mobile operators and broadcasters across
several high-potential European markets. To support this growth, Michael
Foulkes was appointed CFOO (Chief Financial & Operating Officer) in
January.
· Our customer services in the Republic of Ireland continue to
operate unchanged and are experiencing growth, with no anticipated changes
this year.
· Fonix continues to maintain a high level of client retention, with
over 99% of income of a repeating nature.
· 100% platform uptime throughout the Period.
· Fonix's key service lines have each grown in the Period and the
business retains a significant pipeline of enterprise prospects going into H2
FY25.
· Increased interim dividend of 2.9p (FY24: 2.6p) per share, in line
with the Company's progressive dividend policy to pay out at least 75% of
adjusted EPS. This is in addition to a special dividend of 3.0p per share paid
in February 2025.
· Underlying cash at £11.0m (H1 FY24: £11.2m) at the Period end, of
which £3.0m was subsequently returned to shareholders in February 2025 in the
form of a special dividend of 3.0p per share.
Outlook
With a solid base of recurring revenue from existing clients and the addition
of new customers including News UK, Lebara, and Grace Media, along with the
upcoming launch of services in Portugal, Fonix is well-placed for a strong
second half of the financial year. The Board anticipates a stronger H2
weighting than usual periods, driven by our growing client base and steady
demand for enterprise messaging solutions. This supports our confidence in
meeting market expectations for FY25.
Looking ahead, Fonix's expanding range of products and focused international
growth strategy offer clear opportunities across key European markets. The
Board remains very confident in the Company's long-term potential, supported
by a strong financial position, leading technology, and a consistent ability
to deliver value for shareholders.
Notes
(1) Adjusted EBITDA excludes share-based payment charges along with
depreciation, amortisation, interest, R&D tax credits and tax from the
measure of profit.
(2) Adjusted PBT is profit before tax excluding share-based payment charges
and R&D tax credits.
(3) Adjusted EPS is earnings per share excluding share-based payment charges.
(4) Underlying cash is actual cash excluding cash held on behalf of customers.
Rob Weisz, CEO, commented:
"We have delivered another period of strong performance, driven by our
continued focus on driving revenue growth for our largest customers through
cutting-edge technology. New partnerships with major clients like News UK,
alongside innovative product launches such as PayFlex and DonationPortal,
highlight the increasing strength of our offering. We've made significant
progress internationally, with our expansion into Portugal marking a key
milestone in continental Europe. With a solid financial foundation,
disciplined investment strategy, and relentless focus on innovation, we are
well-positioned to capitalise on new opportunities and deliver sustained value
for our shareholders."
Enquiries
Fonix plc
Tel: +44 20 8114 7000
Robert Weisz, CEO
Michael Foulkes, CFOO
Cavendish Capital Markets Limited (Nomad and Broker)
Tel: +44 20 7220
0500
Jonny Franklin-Adams / Seamus Fricker / Hamish Waller (Corporate Finance)
Sunila de Silva/ Harriet Ward (ECM)
About Fonix
Founded in 2006, Fonix is a leading provider of mobile payments and messaging
solutions, enabling businesses to connect, engage, and transact seamlessly
through mobile technology.
Fonix helps organisations across media, charity, entertainment, and enterprise
sectors drive revenue and enhance audience engagement.
Headquartered in London, Fonix is a fast-growing, innovation-driven company,
trusted by industry leaders such as ITV, Bauer Media, RTÉ, Global, Comic
Relief, and BBC Children in Need. With a strong focus on technology and
consumer experience, Fonix continues to shape the future of mobile payments
and interactivity.
CEO's review
Fonix continues to execute a focused growth strategy, leveraging its
technological innovation, industry expertise, and market-leading client
relationships to drive increased revenue for its largest customers and expand
into high-potential international markets.
Fonix's growth strategy is centred on two key priorities: driving revenue
growth for our largest customers through cutting-edge technology solutions and
strategically expanding into high-potential international markets by
leveraging our strong industry reputation, market-leading expertise, and
innovative product suite. This approach will ensure sustainable long-term
value creation for shareholders while reinforcing our competitive advantage.
Growth pillars
To align with our evolving priorities, we have refined our growth strategy to
three key pillars:
1. Driving revenue growth through technological innovation
Our primary objective is driving revenue growth for existing customers through
technological innovation. During the period, gross profit rose to £9.8m,
underscoring the continuing demand for our mobile payments and messaging
solutions. Mobile payments gross profit advanced from £7.5m to £7.9m
reflecting the onboarding of key new clients including News UK and Lebara. At
the same time, mobile messaging continued to grow during the period, driven by
increased demand for our enterprise messaging products.
Fonix's Campaign Manager product continues to be a leading driver of
engagement and revenue for our customers. News UK has adopted our interactive
services across its Virgin Radio and TalkSport brands, with potential for
further expansion into its publishing assets.
Innovation remains at the heart of our strategy. Shortly after the period end,
we introduced PayFlex, an advanced extension of our Campaign Manager platform
that integrates Apple Pay, Google Pay, and PayPal to improve the recovery of
failed mobile payments. Looking ahead, PayFlex will be a powerful catalyst for
revenue growth, driving higher checkout conversions, maximising transaction
values, and delivering optimal cost efficiencies. Its role as a transformative
force in mobile payments will further strengthen our customers' competitive
edge and reinforce Fonix's leadership in the industry.
DonationPortal, another key enhancement to our product suite, extends the
capabilities of Campaign Manager by equipping charities with branded donation
pages, real-time analytics, and deeper engagement insights. By integrating
seamlessly with existing workflows, DonationPortal strengthens our ability to
deliver value through technology-led solutions, further reinforcing our
commitment to innovation and revenue optimisation for our clients.
2. Client and sector led international expansion
Fonix's international expansion is progressing rapidly, building on our strong
reputation and industry expertise. Our entry into Portugal was catalysed by a
referral from an existing UK customer, underscoring the strength of our client
relationships. Since then, we have secured direct contracts with all major
mobile network operators in the region, marking a crucial milestone in our
European strategy. Furthermore, we have expanded our network by forging
relationships with other key businesses, establishing a strong foundation for
significant growth potential in the market over the coming years. Our
strategic partnership with NOS enables us to deploy Campaign Manager across
its extensive broadcast network, reinforcing our foothold and unlocking
further growth potential.
Looking beyond Portugal, we are actively identifying additional high-potential
markets where broadcaster prize draw competitions and regulatory exemptions
create favourable conditions for interactive services. Our early-stage
discussions with mobile operators and broadcasters across multiple European
regions bolster our confidence in the scalability of our model and the
long-term revenue opportunities that international expansion presents.
Our customer services in the Republic of Ireland continue to operate unchanged
and are experiencing growth, with no anticipated changes this year. While the
Gambling Regulation Bill has been enacted, the formation of the Gambling
Regulatory Authority of Ireland (GRAI) remains in its early stages, and its
implementation is expected to be phased in over an extended period. With the
regulator's remit still unclear-particularly regarding media prize draw
competitions-we remain confident in the stability of our operations. We
continue to support new customer launches in the market and do not foresee any
regulatory developments impacting our outlook at this stage.
3. Create sustainable, long-term profitability for
shareholders
The management team remains focused on ensuring that all new growth is derived
from sustainable, high-quality services with predictable long-term revenue
potential, underpinned by operational efficiency. This disciplined approach
enables Fonix to remain highly cash generative. Adjusted EBITDA rose by 6.8%
during the period to £7.8m (FY24: £7.3m), reflecting disciplined cost
management alongside strategic investments in international expansion and
product innovation. This growth underscores our commitment to maintaining a
strong financial position while positioning the business for long-term
scalability and profitability.
The sustainability of our business model is firmly rooted in our impeccable
reputation for delivering high-quality services, deep industry expertise,
regulatory compliance, and robust, scalable technology. Our commitment to
consistent, uninterrupted service is a key differentiator, demonstrated by
100% platform uptime throughout the period. This reliability, combined with
our proven compliance track record, continues to strengthen the trust placed
in us by mobile operators, regulators, and enterprise clients alike.
People
The Company remains committed to maintaining its position as a market leader
by fostering a dynamic and high-performing team. Attracting and retaining top
industry talent is crucial as we scale, and we have continued to invest in our
people to support our evolving business. To strengthen our product
capabilities, we have expanded our team with more senior development hires,
ensuring we can drive multiple product workstreams efficiently and deliver on
our ambitious growth plans.
As we expand into new markets, we are strategically appointing experienced
local experts with deep regional knowledge, ensuring we navigate and assess
these opportunities effectively while clearly articulating the unique
advantages of our solutions to prospective partners.
Recognising the increasing complexity of our business, particularly as we
expand internationally and enhance our product suite, Michael Foulkes has been
appointed CFOO (Chief Financial & Operating Officer). His expanded role
will provide strategic oversight of our technology development and operational
expansion, positioning Fonix for the next phase of its growth journey.
Financial Review
Key performance indicators
Financial H1 FY25 H1 FY24 Change
Gross profit £9.8m £9.2m 6.5%
Adjusted EBITDA(1) £7.8m £7.3m 6.8%
Adjusted PBT(2) £7.8m £7.4m 5.4%
Underlying cash(3) £11.0m £11.2m -1.8%
Adjusted EPS(4) 6.2p 5.7p 8.8%
Non-financial H1 FY25 H1 FY24 Change
Total payments volumes (TPV) £150m £158m -5.1%
( )
(1) Adjusted EBITDA excludes share-based payment charges along with
depreciation, amortisation, interest, R&D tax credits and tax from the
measure of profit.
(2) Adjusted PBT is profit before tax excluding share-based payment charges
and R&D tax credits.
(3) Underlying cash is actual cash excluding cash held on behalf of customers.
(4) Adjusted EPS is earnings per share excluding share-based payment charges.
Gross Profit
Gross profit is the business' most important financial indicator as this
represents the Company's share of revenue for processing mobile payments and
SMS messages.
Gross profit for the period increased to £9.8m (H1 FY24: £9.2m) growing 6.5%
on the previous period. This was driven by 6% growth in mobile payments, 10%
growth in mobile messaging, and 4% growth in managed services. Geographically,
gross profit grew by 6% in the UK and 9% across the rest of Europe.
The Directors therefore monitor results and performance of the Company based
upon the gross profit generated, which is considered the more meaningful
measure of performance than revenue.
Revenue for the period declined by 2% to £38.8m (H1 FY24: £39.7m), primarily
due to a reduction in voice telephony services, which are largely pass-through
transactions, and some strategic optimisation of consumer pricing by
customers.
As a result of the change in the revenue profile of mobile payments, blended
gross profit margins increased to 25.2% (H1 FY24: 23.2%).
Total payment volumes (TPV) fell to £150m (H1 FY24: £158m), reflecting fewer
charity campaigns, a reduction in low-margin voice telephony services, and the
exit of some gaming customers from the UK market.
Adjusted Operating Expenses
Operating costs have remained firmly under control, with costs generally only
increasing where the business has made additional strategic investments in
product and internationally focused resources that are anticipated to pay back
in future years. Adjusted operating costs increased 3% in the period to
£1.95m (H1 FY24: £1.90m). The majority of the increase related to additional
staff costs.
Staff related costs and incentives increased to £2.1m (H1 FY24: £2.0m) in
the period reflecting the additional investment in product and exploring
international markets. Average headcount for the period was 50 (H1 FY24: 45).
Software development costs of £600k (H1 FY24: £509k) were capitalised in the
period, representing 66% (H1 FY24: 65%) of development costs. The increase in
capitalised expenditure reflects the additional focus on new product
innovations, particularly cost relating to the development of PayFlex. The
capitalisation of current period development spend was offset by an
amortisation charge of £412k (H1 FY24: £325k). Development costs are
amortised on a straight-line basis over 3-years.
Adjusted EBITDA
The growth in gross profit and the continued control of costs has resulted in
an equivalent increase in adjusted EBITDA, which is up 6.8% at £7.8m (H1
FY24: £7.3m) for the period. To provide a better guide to the underlying
business performance, adjusted EBITDA excludes share-based payment charges
along with depreciation, amortisation, interest, R&D tax credits and tax
from the measure of profit.
Finance income and expenses
Finance expenses which relate to the unwinding of the discounted lease
liability were £12k (H1 FY24: £4k) as the business renewed its office lease
in November 2023 for a further three years.
Interest income on bank deposits fell due to the decrease in base interest
rates and additional shareholder distributions in the period.
Corporation tax
The Company's effective corporation tax rate has risen due to changes in the
UK SME R&D scheme, particularly the exclusion of overseas R&D costs.
Statement of Financial Position
The Company had net assets of £11.2m at the period end (H1 FY24: £10.3m),
including capitalised software development costs with a carrying value of
£1,795k (H1 FY24: £1,423k). The movement in net assets reflects profits
after tax less dividend payments and share buy-backs.
The Company pays out monies to customers (merchants) once reconciliations have
been completed and the equivalent monies have been received from mobile
network operators. As a result, the Company often holds significant amounts of
customer related receivables, payables and cash, which can vary substantially
from period to period, depending on timing of customer campaigns and mobile
operator outpayments.
Current assets were largely unchanged at the period end at £73.2m (H1 HY24:
£73.6m). Trade and Other Receivables, which includes monies receivable on
behalf of customers, increased in the period, but was offset by a decrease in
actual cash. This was purely due to the timing of some mobile network operator
outpayments at the period end, which were paid a few days later than the
previous period. Current liabilities decreased to £63.7m (H1 FY24: £64.7m),
largely attributable to a reduction in monies held on behalf of charity
customers at the period end.
Non-current liabilities decreased to £0.3m (H1 FY24: £0.4m) due to the
unwinding of lease liabilities relating to the Company's office.
Cash and underlying cash
The board distinguishes between actual cash, which includes cash held on
behalf of customers, and underlying cash, which excludes cash held on behalf
of customers.
Underlying cash far better represents the free cash flow available to the
business. Underlying cash decreased 2% to £11.0m (H1 FY24: £11.2m) primarily
due to the introduction of advanced corporation tax payments in the Republic
of Ireland.
Actual cash, which includes cash held on behalf of customers, varies
substantially from period to period and is particularly sensitive to the
timing of mobile network operator payments at month end, as well as
pass-through outpayments for customer charity campaigns. Actual cash held at
the period end was £25.0m (H1 FY24: £29.5m) in the period. The decrease is
down to mobile network operator payments being paid a few days later at the
period end (than the previous year) and a reduction in monies held on behalf
of charity customers at the period end.
Dividend declaration
We are pleased to declare our increased interim dividend of 2.9p per share, in
line with the Company's progressive dividend policy to pay out at least 75% of
adjusted EPS to shareholders in the form of an ordinary dividend each period.
The interim dividend will be paid on 4 April 2025 to shareholders on the
register on 28 March 2025 (record date), with an ex-dividend date of 27 March
2025.
Outlook
With a solid base of recurring revenue from existing clients and the addition
of new customers including News UK, Lebara, and Grace Media, along with the
upcoming launch of services in Portugal, Fonix is well-placed for a strong
second half of the financial year. The Board anticipates a stronger H2
weighting than usual periods, driven by our growing client base and steady
demand for enterprise messaging solutions. This supports our confidence in
meeting market expectations for FY25.
Looking ahead, Fonix's expanding range of products and focused international
growth strategy offer clear opportunities across key European markets. The
Board remains very confident in the Company's long-term potential, supported
by a strong financial position, leading technology, and a consistent ability
to deliver value for shareholders.
Robert Weisz
Chief Executive Officer
Unaudited interim results for the 6 months ended 31 December 2024
Statement of Comprehensive Income
For the 6 months ended 31 December 2024
Unaudited Unaudited Audited
6 months to 6 months to Year to
31 December 31 December 30 June
2024 2023 2024
Note £'000 £'000 £'000
Continuing operations
Revenue 4 38,750 39,658 76,089
Cost of sales (28,986) (30,460) (58,203)
Gross profit 3 9,764 9,198 17,886
Other income - - -
Adjusted operating expenses(1) (1,952) (1,895) (4,193)
Profit before interest, tax, depreciation, amortisation, share-based payment 7,812 7,303 13,693
charge and exceptional costs
R&D tax credit 122 - 58
Share-based payment charge (39) (46) (100)
Depreciation and amortisation (482) (389) (825)
Operating profit 7,413 6,868 12,826
Finance income 464 496 1,127
Finance expense (12) (4) (19)
Profit before taxation 7,865 7,360 13,934
Taxation (1,804) (1,675) (3,317)
Total comprehensive profit for the period 6,061 5,685 10,617
(1) Adjusted operating expenses excludes share-based payment charge,
depreciation and amortisation
Earnings per share Unaudited Unaudited Audited
6 months to 6 months to Year to
31 December 31 December 30 June
2024 2023 2024
Basic earnings per share 6.1p 5.7p 10.7p
Diluted earnings per share 6.1p 5.7p 10.6p
Adjusted basic earnings per share 6.2p 5.7p 10.8p
Statement of Financial Position
As at 31 December 2024
Unaudited Unaudited Audited
31 December 31 December 2023 30 June
2024 2024
£'000 £'000 £'000
Non-current assets
Intangible asset 1,795 1,423 1,606
Right of use asset 226 346 286
Tangible assets 33 27 30
2,054 1,796 1,922
Current assets
Trade and other receivables 48,215 44,032 35,947
Cash and cash equivalent 25,034 29,548 26,480
73,249 73,580 62,427
Total assets 75,303 75,376 64,349
Equity and liabilities
Equity
Share capital 100 100 100
Share premium account 679 679 679
Treasury shares (2,051) (242) (2,273)
Share option reserves 374 309 362
Retained earnings 12,142 9,503 11,834
11,244 10,349 10,702
Liabilities
Non-current liabilities
Deferred tax liabilities 228 145 237
Lease liabilities 85 206 146
313 351 383
Current liabilities
Trade and other payables 63,625 64,566 53,148
Lease liabilities 121 110 116
63,746 64,676 53,264
Total liabilities 64,059 65,027 53,647
Total equity and liabilities 75,303 75,376 64,349
Statement of Changes in Equity
For the 6 months ended 31 December 2024
Share capital Share premium Share option reserve Treasury shares Retained earnings Total
£'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 July 2023 100 679 297 (495) 8,807 9,388
Profit for the period - - - - 5,685 5,685
- - - - 5,685 5,685
Transactions with shareholders
Dividends - - - - (4,884) (4,884)
Share-based payment charge - - 46 - - 46
Exercise of share options issued from treasury shares - - - 253 (139) 114
Fair value of options exercised in the period - - (34) - 34 -
- - 12 253 (4,989) (4,724)
Balance at 31 December 2023 100 679 309 (242) 9,503 10,349
Profit for the period - - - - 4,932 4,932
- - - - 4,932 4,932
Transactions with shareholders
Dividends - - - - (2,597) (2,597)
Share-based payment charge - - 53 - - 53
Purchase of own shares - - - (2,040) - (2,040)
Exercise of share options issued from treasury shares - - - 9 (4) 5
Purchase of own shares - - - - - -
- - 53 (2,031) (2,601) (4,579)
Balance at 30 June 2024 100 679 362 (2,273) 11,834 10,702
Profit for the period - - - - 6,061 6,061
- - - - 6,061 6,061
Transactions with shareholders
Dividends - - - - (5,647) (5,647)
Share-based payment charge - - 39 - - 39
Exercise of share options issued from treasury shares - - - 222 (133) 89
Fair value of options exercised in the period - - (27) - 27 -
- - 12 222 (5,753) (5,519)
Balance at 31 December 2024 100 679 374 (2,051) 12,142 11,244
Statement of Cash Flows
For the 6 months ended 31 December 2024
Unaudited Unaudited Audited
6 months to 6 months to Year to
31 December 31 December 30 June
2024 2023 2024
£'000 £'000 £'000
Cash flows from operating activities
Profit before taxation 7,865 7,360 13,934
Adjustments for
Depreciation 10 7 15
Amortisation 472 382 809
Share-based payment charge 39 46 100
Finance income (464) (496) (1,127)
Finance expense 12 4 19
(Increase)/decrease in trade and other receivables (12,270) (7,975) 111
Increase/(decrease) in trade and other payables 10,985 15,120 4,297
Income tax paid (2,321) (693) (2,839)
Net cash flows from operating activities 4,328 13,755 15,319
Cash flows from investing activities
Interest received 464 496 1,127
Payments to acquire tangible assets (13) (6) (18)
Payments to acquire intangible assets (600) (510) (1,061)
Net cash flows from investing activities (149) (20) 48
Cash flows from financing activities
Net proceeds from issue of equity 90 114 119
Dividends paid (5,647) (4,884) (7,481)
Purchase of own shares - - (2,040)
Capital payments in respect of leases (56) (61) (115)
Interest paid in respect of leases (12) (4) (18)
Net cash flows from financing activities (5,625) (4,835) (9,535)
Net increase in cash and cash equivalents for the period (1,446) 8,900 5,832
Cash and cash equivalents at beginning of period 26,480 20,648 20,648
Cash and cash equivalents at end of period 25,034 29,548 26,480
Statement of Underlying Cash Flows
For the 6 months ended 31 December 2024
The Company's mobile payments segment involves collecting cash on behalf of
clients which is then paid to clients net of the Company's share of revenues
or fees associated with collecting the cash. The Company's cash balance
therefore fluctuates depending on the timing of "pass through" cash received
and paid.
The analysis below shows the movements in the Company's underlying cash flow
excluding the monies held on behalf of customers. The underlying cash is
derived from actual cash by adjusting for customer related trade and other
receivables less customer related trade and other payables and customer
related VAT liabilities.
Unaudited Unaudited Audited
6 months to 6 months to Year to
31 December 31 December 30 June
2024 2023 2024
£'000 £'000 £'000
Underlying cash flows from operating activities
Profit before taxation 7,865 7,360 13,934
Adjustments for
Depreciation 10 7 15
Amortisation 472 382 809
Share-based payment charge 39 46 100
Finance income (464) (496) (1,127)
Finance expense 12 4 19
(Increase)/decrease in trade and other receivables 6 (50) (31)
Increase/(decrease) in trade and other payables (209) 69 485
Income tax paid (2,321) (693) (2,839)
Net underlying cash flows from operating activities 5,410 6,629 11,365
Underlying cash flows from investing activities
Interest received 464 496 1,127
Payments to acquire tangible assets (13) (6) (18)
Payments to acquire intangible assets (600) (510) (1,061)
Net underlying cash flows from investing activities (149) (20) 48
Underlying cash flows from financing activities
Net proceeds from issue of equity 90 114 119
Dividends paid (5,647) (4,884) (7,481)
Purchase of own shares - - (2,040)
Capital payments in respect of leases (56) (61) (115)
Interest paid in respect of leases (12) (4) (18)
Net underlying cash flows from financing activities (5,625) (4,835) (9,535)
Net increase in underlying cash for the period (364) 1,774 1,878
Underlying cash at beginning of period 11,324 9,446 9,446
Underlying cash equivalents at end of period 10,960 11,220 11,324
Notes to the preliminary financial information
1. Basis of preparation
The financial information relating to the half year ended 31 December 2024 is
unaudited and does not constitute statutory financial statements as defined in
section 434 of the Companies Act 2006.
The Company is a public limited company incorporated and domiciled in England
& Wales and whose shares are quoted on AIM, a market operated by The
London Stock Exchange. The presentational and functional currency of the
Company is Sterling. Results in this financial information have been prepared
to the nearest £1,000.
Whilst the financial information included in these interim accounts has been
prepared in accordance with IFRS, they do not contain sufficient information
to comply with IFRS. In addition, this report is not prepared in accordance
with IAS 34.
The Profit before interest, tax, depreciation, amortisation, share-based
payment charge and exceptional costs is presented in the statement of total
comprehensive income as the Directors consider this performance measure
provides a more accurate indication of the underlying performance of the
Company and is commonly used by City analysts and investors.
The comparative financial information for the year ended 30 June 2024 has been
extracted from the annual financial statements of Fonix plc. These interim
results for the period ended 31 December 2024, which are not audited, do not
comprise statutory accounts within the meaning of section 434 of the Companies
Act 2006. The financial information does not therefore include all of the
information and disclosures required in the annual financial statements.
Full audited accounts of the Company in respect of the year ended 30 June
2024, which received an unqualified audit opinion and did not contain a
statement under section 498(2) or (3) of the Companies Act 2006, have been
delivered to the Registrar of Companies.
2. Going concern
At the time of approving the financial information, the directors have a
reasonable expectation that the Company has adequate resources to continue in
operational existence for the foreseeable future. Fonix is not externally
funded and accordingly is not affected by borrowing covenants. In addition the
cost of capital represents the dividend distributions and share buy-backs,
which are discretionary.
At 31 December 2024 the Company had Cash and Cash Equivalents of £25.0
million (31 December 2023: £29.5 million) and Net Current Assets of £9.5
million (31 December 2023: £8.9 million). The business model of Fonix is cash
generative, with increased sales impacting positively on the working capital
cycle and profits from trading activities being rapidly reflected in cash at
bank.
Accordingly the Directors continue to adopt the going concern basis of
accounting in preparing this financial information.
3. Segmental reporting
Management currently identifies one operating segment in the Company under
IFRS 8 - being the facilitating of mobile payments and messaging. However, the
Directors monitor results and performance based upon the Gross Profit
generated from the Service lines as follows:
Unaudited Unaudited Audited
6 months to 6 months to Year to
31 December 31 December 30 June
2024 2023 2024
Gross Profit £'000 £'000 £'000
Mobile Payments 7,939 7,522 14,782
Mobile Messaging 1,442 1,308 2,332
Managed Services 383 368 772
9,764 9,198 17,886
Differences between the way in which the single operating segment is reported
in the financial information and the internal reporting to the Board for
monitoring and strategic decisions, relates to the recording of revenue in
line with IFRS 15. The IFRS adjustments do not impact on the calculation or
reporting of Gross Profit.
Gross profits can be attributed to the following geographical locations, based
on the end user and the associated mobile network operators' location:
Unaudited Unaudited Audited
6 months to 6 months to Year to
31 December 31 December 30 June
2024 2023 2024
Gross profit by geography £'000 £'000 £'000
United Kingdom 8,542 8,078 15,691
Rest of Europe 1,222 1,120 2,195
9,764 9,198 17,886
4. Revenue
The Company disaggregates revenue between the different streams outlined as
this is intended to show its nature and amount.
The total revenue of the Company has been derived from its principal activity
undertaken wholly in the United Kingdom and EU.
Revenue is recognised at the point in time of each transaction when the
economic benefit is received. The total revenue of the Company by Service Line
is as follows:
Unaudited Unaudited Audited
6 months to 6 months to Year to
31 December 31 December 30 June
2024 2023 2024
Revenue by Service Line £'000 £'000 £'000
Mobile Payments 25,995 28,375 54,199
Mobile Messaging 11,719 10,281 19,859
Managed Services 1,036 1,002 2,031
38,750 39,658 76,089
The number of customers representing more than 10% of revenue or gross profit
in period were 3 (31 December 2023: 3)
Revenues can be attributed to the following geographical locations, based on
the end user and the associated mobile network operators' location:
Unaudited Unaudited Audited
6 months to 6 months to Year to
31 December 31 December 30 June
2024 2023 2024
Revenue by geography £'000 £'000 £'000
United Kingdom 32,229 33,401 63,915
Rest of Europe 6,521 6,257 12,174
38,750 39,658 76,089
5. Earnings per share
The calculations of earnings per share are based on the following profits and
number of shares:
Unaudited Unaudited Audited
6 months to 6 months to Year to
31 December 31 December 30 June
2024 2023 2024
£'000 £'000 £'000
Retained profit for the period 6,061 5,685 10,617
Unaudited Unaudited Audited
6 months to 6 months to Year to
31 December 31 December 30 June
2024 2023 2024
Number of shares Number Number Number
Weighted average number of shares 98,997,727 99,783,276 99,651,884
Share options 716,264 656,941 803,079
99,713,991 100,440,217 100,454,963
Earnings per ordinary share
Basic 6.1p 5.7p 10.7p
Diluted 6.1p 5.7p 10.6p
At 31 December 2024 the Company had 100,000,000 (31 December 2023:
100,000,000) shares in issue of which 924,472 (31 December 2023: 122,443) were
held in treasury.
The calculations of adjusted earnings per share are based on the following
adjusted profits and number of shares listed above:
Unaudited Unaudited Audited
6 months to 6 months to Year to
31 December 31 December 30 June
2024 2023 2024
Adjusted earnings per share £'000 £'000 £'000
Retained profit for the period 6,061 5,685 10,617
Adjustments
Share-based payment charge 39 46 100
Net adjustments 39 46 100
Adjusted earnings 6,100 5,731 10,717
Adjusted basic earnings per ordinary share 6.2p 5.7p 10.8p
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 IR FLFFTVIIDLIERecent news on Fonix
See all newsREG - Fonix PLC - Holding(s) in Company
AnnouncementREG - Fonix PLC - Grant of Market Price Options and PDMR Dealing
AnnouncementREG - Fonix PLC - Interim Results
AnnouncementREG - Fonix PLC - Trading Update and Special Dividend Declaration
AnnouncementREG - Fonix PLC - Total Voting Rights
Announcement