REG - Glantus Holdings PLC - FY 2022 Trading Update

Glantus HoldingsAnnouncement

14/02/2023 07:00

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RNS Number : 8001P  Glantus Holdings PLC  14 February 2023

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE MARKET ABUSE REGULATION (EU) 596/2014 WHICH IS PART OF UK LAW BY VIRTUE OF
THE EUROPEAN UNION (WITHDRAWAL) ACT 2018.

 

Glantus Holdings plc

 

(''Glantus'' or the ''Company'' or the "Group")

 

FY 2022 Trading Update

 

Glantus (AIM: GLAN), the provider of Accounts Payable ("AP") automation and
analytics solutions announces a trading update (unaudited) for the year ended
31 December 2022 ("FY 2022").

 

Trading performance

As indicated in the Company's interim results at the end of September 2022, it
has been a very challenging year for Glantus.  Accordingly, the Company
expects to report, subject to audit, revenue for FY 2022 of c.€10.8m and an
adjusted EBITDA loss of €2.1m before exceptional restructuring costs and any
impairment of goodwill from acquisitions.

These results have been impacted by a number of factors, including the
negative impact the global restructuring has had on productivity, the
relocation of the AP audit function to Costa Rica and the delayed onboarding
of some new opportunities. In addition, the Board, having done a comprehensive
review, has prudently determined that a material amount of revenue which was
anticipated in FY2022 from two client contracts may not be achieved.

In response to the above, the Group has rapidly and decisively restructured
the business. This has achieved annualised cost savings of over €3m by
reducing the global workforce by 39 persons. In addition, there has been a
further significant reduction in operational infrastructure costs. This
restructuring has consolidated operations globally with a focus on
technology-led initiatives to drive margins and scale.

Alongside these cost savings, the Company has been able to generate
encouraging monthly billing amounts in recent months, with average monthly
billing in Q4 2022 of c.€1.22m and in excess of €1.1m for January 2023.
This billing performance combined with the revised cost base means the Board
believes the business is poised to deliver strong margins and positive cash
flow from operations in 2023.

Balance sheet and potential equity subscription

As a result of the challenges during FY 2022, the Company currently has low
amounts of cash resources available for its use. In addition, under the
Company's existing banking facilities with its lender, Beach Point Capital
("BPC"), the Company is due to repay €5m in August 2023. The Company has
been in discussions with BPC regarding such repayment and confirms that it has
received from BPC a conditional commitment to extend the repayment date by 12
months to 31 August 2024 (the "Extension Commitment").

The Extension Commitment is conditional on both final legal agreement and the
Company raising £1.2m through an equity raise. In order to satisfy the equity
raise condition and increase the cash resources available to it, the Company,
later today, expects to announce a conditional €1.4m subscription of new
shares in the Company at a price of 9.25 pence per share. There can be no
certainty that an equity subscription or an agreement for the BPC extension
will be completed. The Company will provide further updates as appropriate.

 

Enquiries:

 

 

 Glantus Holdings
 Maurice Healy, CEO                        + 353 862677800

 Diane Gray Smith, Interim CFO

 ir@glantus.com (mailto:ir@glantus.com)

 Shore Capital
 Nominated Advisor and Broker              + 44 207 408 4090

 Patrick Castle / John More / Tom Knibbs

 Yellow Jersey PR
 Charles Goodwin                           +44 7747 788 221

 Lilian Filips

 Annabelle Wills

About Glantus Holdings plc

Glantus Holdings (AIM: GLAN) Glantus is a global provider of accounts payable
automation and analytics solutions. Glantus' mission is to harness technology
to drive innovation, unlocking efficiencies in AP to maximise working capital
for global enterprise organisations. The award-winning Glantus DataShark
Platform connects all AP systems and suppliers on one agile platform,
eliminating cost and delivering new revenue streams. We work in tandem with
our partners to deliver joint enterprise digital transformation solutions. For
more information see glantus.com.

Founded in 2014 and headquartered in Dublin, Glantus has offices in the United
States, United Kingdom, Poland and Costa Rica.

 

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