REG - Glantus Holdings PLC - Year End Results
30/05/2022 07:15
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RNS Number : 0957N Glantus Holdings PLC 30 May 2022
Glantus Holdings plc
("Glantus" or the "Company" or the "Group")
Full Year Results
Successfully delivered on IPO goals and trading in the new financial year in
line with the Board's expectations
Glantus, a leading provider of software as a service ("SaaS") solutions
delivering automation and analytics to the Accounts Payable ("AP") function is
pleased to announce its final results for the twelve months to 31 December
2021 ("FY21").
FY21 Highlights
· Successful IPO in May 2021 raising net proceeds of €9.8m which
has strengthened our balance sheet and increased our profile in the Accounts
Payable sector
· $1.6Tn transactions on the proprietary Glantus Platform
· Revenue including other income growth of 27% to €10.7m (FY20:
€8.5m) due to strong organic trading performance and acquisitions
· Adjusted EBITDA margin increase to €3.1m / 29% (FY20: €2.1m /
25%) as a result of full effects of acquisition efficiencies and focus on
operational costs
· 2021 subscription churn rate of significantly reduced to 2.9%
(FY20: 6.9%) demonstrating the value and dependency customers place on the
SaaS solutions
· 430 global customers, an increase of 31%, up from 328 customers
in FY20, in over 50 countries
· Accreditations in ISO 27701, ISO 27001 and ISO 9001 across the
Group
· Two successful strategic and earnings enhancing acquisitions in
the US and UK
· Glantus continues to accelerate the development of the SaaS
platform embracing new technologies and added value solutions to the Accounts
Payable product suite
Post year end highlights and outlook
· Partnership with TealBook announced to create a Data Intelligence
Ecosystem of Procurement and Accounts Payable
· New appointments to our executive team, Diane Gray-Smith and
David Rosenthal reflect our deepening focus on the role of technology,
innovation and expanding our services as SaaS solutions to the global Accounts
Payable functions
· The Group continues to grow its headcount to support expanding
operations and now has 124 staff in 6 countries
· Relaunch of product suite as part of overall brand refresh
· Trading in the new financial year has been in line with the
Boards' expectations and the business model and strategy provides a strong
platform for significant growth.
· Looking forward, the Board has the confidence of the continued
and sustained demand for the Glantus solutions and the potential for
additional products to be integrated onto the Glantus platform.
Financial Highlights
€'000 FY21 FY20 YoY Change %
Revenue inc. other income 10,740 8,453 27%
Adjusted EBITDA 3,103 2,077 49%
Adjusted EBITDA % 29% 25% 16%
Adjusted operating profit 1,676 1,358 23%
Adjusted Profit before tax 709 684 4%
Adjusted basic EPS (cents) 9.36 7.90 18%
Closing cash and cash equivalents 2,353 1,891 24%
Customer Numbers 430 328 31%
Subscription Churn Rate % 2.9% 6.9% -58%
Maurice Healy, CEO, commented:
"I am delighted to present Glantus' maiden full year results for the year
ended 31 December 2021. It has been an exceptional year for the Group, in
which we accomplished the performance goals we committed to at IPO and made
successful acquisitions in the US and UK.
Glantus operates in the expanding Accounts Payable market. Having developed
a unique range of products and services, we are poised to become the dominant
SaaS player in this sector. The combination of our strong business
fundamentals, cutting edge technology, exceptional leadership team and
targeted strategic acquisitions heralds a strong future for our Group".
Company Contact Information
For further Information visit www.glantus.com (http://www.glantus.com) ,follow
on twitter @GlantusLTD or contact:
Glantus Holdings Plc
+353 87 9452047
Maurice Healy, Chief Executive Officer
ir@glantus.com (mailto:ir@glantus.com)
Grainne McKeown, Chief Financial Officer
Shore Capital
+44 207 408 4090
Nominated Advisor and Broker
Patrick Castle / John More / Tom Knibbs (Corporate Advisory)
Andrew Beswick (Corporate Broking)
Flagstaff Strategic and Investor Communications
Tim Thompson
+44 7710 718 649
Mark Edwards
Fergus Mellon
glantus@flagstaffcomms.com (mailto:glantus@flagstaffcomms.com)
Share listing
Listed on AIM
TIDM GLAN
ISIN IE00BNG2V304
A copy of these financial statements is available on the investor section of
the Company's website at www.glantus.com (http://www.glantus.com) . Full
Financial Statements and Annual Report will be published in June 2022 and made
available on the Company's website and sent to shareholders.
Final results presentation
Maurice Healy (CEO) and Grainne McKeown (CFO) will provide a live presentation
relating to Glantus 2021 Final Results via the Investor Meet Company platform
on 31 May 2021 at 5pm BST.
The presentation is open to all existing and potential shareholders. Questions
can be submitted pre-event via your Investor Meet Company dashboard up until
9am the day before the meeting or at any time during the live presentation.
Investors can sign up to Investor Meet Company for free and add to meet
Glantus via:
https://www.investormeetcompany.com/glantus-holdings-plc/register-investor
(https://www.investormeetcompany.com/glantus-holdings-plc/register-investor)
About Glantus
Since 2017, Glantus, a leading provider of software as a service ("SaaS")
solutions, has been helping global corporates analyse, automate and digitise
their accounts payable function on its proprietary platform to recover lost
working capital. Used by over 400 corporates worldwide, including 120 Tier 1
customers, the platform analyses over $1.6Tn spend, and has oversight of 120m
payments annually.
Glantus provides a proprietary and fully digital end-to-end solution for
companies' AP finance functions. It leverages technology by deploying advanced
data analytics capabilities, including artificial intelligence (AI) and
optical character recognition (OCR), Robotic Processes Automation (RPA) and
advanced algorithms to consolidate and verify the accuracy of accounts
payable. It works to discover and recover lost working capital, improve
efficiency, minimise errors, measure performance and mitigate fraud.
For more information see glantus.com (https://www.glantus.com/)
Chairman's Statement
Overview
This past year has been a landmark one for our Company. I am extremely proud
of the work performed by our executive team under the leadership of our CEO
Maurice Healy, and this is clearly reflected in the financial results for 2021
published today. In May 2021 we successfully completed our fundraise and
admission to London Stock Exchange's AIM market (AIM: Glan), providing the
Group with the funds to invest in its continued product development and
evolution, expanding its sales & marketing opportunities and providing the
business with the ability to consider larger acquisitions of complimentary
technologies and customer reach. Since admission, the Group has acquired US
based Technology Insights Corporation in July 2021, and in November 2021 we
completed the acquisition of Meridian Cost Benefit Ltd., a UK company.
I would like to thank my fellow non-executive directors, Tom Price and Diane
Gray-Smith, appointed at the time of the IPO for their invaluable insights and
contributions as we continue our strategy to grow Glantus internationally.
There is always work to be done in a rapidly growing company and their
dedication and commitment is very much appreciated.
Since the year end Diane has taken up an executive position within Glantus but
remains on the plc Board. Work is underway to appoint another independent
non-executive director in 2022.
Notwithstanding the admission process our teams have grown, supporting our
expanding service offering, achieved operational efficiencies whilst the
Company has remained focussed on delivery to our customers and shareholders.
This is a tremendous accomplishment.
Results
The Group delivered revenue and other income growth of 27% to €10.7m (FY20:
€8.5m) and adjusted EBITDA growth of 49% to €3.1m (FY20: €2.1m) which
reflects a strong performance across all business units.
Technology
We continue to evolve and improve our technology on the proprietary Glantus
SaaS platform, taking advantage of strides in data analytic tools, artificial
intelligence, robotic processes, optical character recognition and advanced
algorithms to deliver a compelling AP solution that presents immediate return
on investment for our customers.
Environment, Social and Governance Considerations
At Glantus we encourage, promote and continuously seek to improve a culture of
good governance throughout our business. We have an inclusive open environment
and transparency, accountability, risk management and responsibility is at the
core of our organisation. We continue to operate with the environment in mind,
being socially responsibly and investing in our people.
As Chairman and on behalf of the Board I would like to thank Maurice and his
team for an incredibly successful year and I look forward to the year ahead.
Barry Townsley CBE
Non-Executive Chairman
30 May 2022
Chief Executive Statement and Operational Review
I am delighted to present Glantus' maiden full year results as a public
company for the year ended 31 December 2021. It has been an exceptional year
for the Group, in which we accomplished the performance goals we committed to
at IPO including investment in account management, sales and marketing and
completed successful acquisitions in the US and UK. This performance was even
more impressive with the challenging backdrop of a global pandemic.
As our story continues to evolve, this year will be about executing and
expanding on our growth plans.
Strategy
The AP market continues to grow and continues to be a very attractive sector
as the importance of AP to secure supply chains and influencing working
capital escalates. It is also recognised as a crucial part of the digitisation
and innovation strategies within organisations.
Glantus technology works with our clients' existing ERP systems and provides a
proprietary and fully digital end-to-end solution for companies' finance
functions. It employs advanced data analytics capabilities, including
artificial intelligence ("AI") and optical character recognition ("OCR"), to
consolidate and verify the accuracy of AP. It works to discover and recover
lost working capital, improve efficiency, minimise errors, measure performance
and mitigate risk.
Our SaaS technology platform is highly respected and supports over 400
customers, in over 50 countries, 120 of which are Tier 1 companies. Across our
suite of products, we have analysed $1.6 trillion of spend over 120 million
individual payments. We have 4.8 million suppliers on our platform.
The Glantus target customer is any organisation with an annual spend of over
$500 million and with suppliers in excess of 4,000.
Our current product offering is noted below with product expansion versus
prior years a result of the integration of our strategic and technology driven
acquisitions. Datashark SaaS platform hosts the following suite of products;
Discover: Advanced analytics using AI to proactively identify, minimise and
facilitate recovery of overpayments, releasing working capital;
Delve: OCR technology and advance algorithms used to reconcile Vendor
statement to the Accounts Payable transaction data within our clients' ERP
systems to recover overpayments and errors;
Flow: Robotic Process applications combined with OCR and AI to automate
workflows to optimise P2P matching, approval and posting processes; and
Origin: A propriety semi automated service using advanced algorithms to
identify and expedite the recovery of unclaimed credits from vendor
statements.
A further exciting opportunity the Company has begun exploring is leveraging
the existing technologies, data, and expertise to develop a unique and fully
integrated buyer-led supply chain finance programme.
People
We recognise the value and contribution every one of our employees makes to
the success of Glantus and for that reason our employees remain our biggest
investment.
I am very proud of all our teams in EMEA and US adapting to a rapid changing
world in terms of environment and the Glantus products.
At Glantus, we are committed to building & developing a "great workplace"
ethos. We added a Head of People & Culture in early 2021 whose remit is to
work with everyone in the Glantus team to build a special working environment
on the pillars of Talent Acquisition, Talent Development, Performance
Coaching, Engagement & Culture and Reward & Recognition.
Our commitment to investment in our current staff and growing the Glantus team
through acquiring highly rated talent will continue in 2022. We are pleased
that the acquisitions we have made have meant we have captured some of the
most talented people in the AP sector.
We have added over 40 people to our global team in the last 12 months and have
an employee turnover rate of less than 10%, in contrast to the industry
average of nearly 20%.
This commitment will ensure we have the dedicated and committed people to
continue our growth trajectory in 2022 and beyond.
This year we are pleased to announce two appointments which build our senior
leadership structure.
Diane Gray-Smith, previously a non-executive director on the plc Board, has
joined the Company as a full-time executive in the role of Chief Corporate
Growth Officer from March 2022. Over the last decade, Diane has been in the C
Suite of global fintech companies in the hypergrowth space and brings
tremendous experience and background to Glantus as we continue to expand our
platform offering. Diane reports directly to the CEO and retains her seat on
the plc Board. Diane will be exploring a unique and fully integrated supply
chain finance programme to complete the Glantus offering from 'procure to
pay'.
We have also bolstered our Operations leadership with the appointment of a new
Chief Operating Officer ("COO"). David Rosenthal has worked at COO level in
large financial services businesses at national and global level. He has been
instrumental in the definition and implementation of products and services and
has significantly scaled-up companies by delivering operational and strategic
transformation programs through digitisation and automation. David is an
expert in getting the most from the budget, resources, time, and people
available. David is responsible for the day to day running of the business
units, reporting directly to the CEO.
Non-Executive Director
Our Board is very engaged and add a wealth of experience and support to the
executive team. With the migration of Diane Gray-Smith from an independent
non-executive role to our Chief Corporate Growth Officer in March 2022, work
has begun to find another independent non-executive director.
Technology
Throughout 2022, a priority will be to continue to invest, develop, build and
explore leading edge technologies to facilitate growth and frictionless end to
end servicing of AP departments which will drive adoption and scale of the
Glantus product suite.
The customer is at the heart of our product innovation. Our development and
engineering teams in Poland and Lithuania, Ireland, UK, and the US continue to
work with our product teams and our customers identifying and developing
products to address pain points and friction in the AP lifecycle.
Currently the platform has integrated proprietorial IP that allows advanced
data analytics capabilities using AI, OCR, RPA, advanced data cleansing
algorithms and fraud analytics to consolidate and verify the accuracy of AP.
It works to discover and recover lost working capital, improve efficiency,
minimise errors, measure performance and manage risk.
In addition, we have begun exploring the integrated technology to support our
move into supply chain finance. We look forward to expanding on this strategy
in the coming year.
Branding and Marketing
The last year has seen the development and definition of our suite of products
focussed on the AP market. Our products Datashark Discover, Datashark Delve,
Datashark Flow, and Datashark Origin are now considered best of breed in their
class. Our continued development sees the evolution of added value
applications into other areas of the AP function, and we look forward to
sharing exciting product news throughout 2022. The development of our products
is powered by our unique, proprietary access to data related to 1.6 trillion
USD of corporate spend every year.
We are pleased to announce the rebranding and repositioning of Glantus. The
new logo and strapline "Liberate, Innovate" has been well received by both
customers and the market. My sincere thanks to our product and marketing teams
for their incredible work in this area of our business. We also thank our
customers for their invaluable input.
Partnerships
As Glantus reaches out to new customers in innovative ways, our global
partnership program offers us an efficient way to develop customers in new
territories.
We recently announced new key partnerships including geographic expansion. Our
partnerships with companies like TealBook (Canada) and VAT IT (South Africa)
are our first foray into new international markets. These partnerships provide
Glantus with links to new product sets that enhance both Glantus and our
partners to create real value for our mutual customers.
The continued development of our partner network globally, enables us to
realise the positive influences and styles of business-to-business referral
relationships that both demonstrates and creates value for our customers and
shareholders. This area will remain a focus for investment during 2022 and as
we mature our partnership programs, we shall further significantly increase
our reach and our potential to increase our revenues.
Acquisitions
Our successful acquisitions and integrations confirm the value of our
acquisition strategy, and we will continue to consider acquisitions that
expand our Glantus offering, customer base and technologies.
Our customers
The longevity of our customer relationships is testament to the quality of the
product and service Glantus provides, and the efficiencies in working capital
our platform delivers.
We have an incredibly successful client onboarding program that connects our
clients' ERP data via API with ease and little disruption.
Strong relationships with our customers are key to our success and we have a
highly motivated and engaged sales team that understands our client needs,
together with sales support and customer success teams.
Glantus' customers are diverse globally both in physical location and industry
segment.
In 2021 we onboarded significant global brands and now have in excess of 120
Tier 1 clients. The sales team have continued to develop a strong pipeline
which is converting to sales in 2022 and beyond.
While challenged with not being able to physically meet our customers in 2021,
we maintained regular and ongoing communications remotely. Since COVID
restrictions have been relaxed we ensure we attend AP conferences and Shared
Services events meeting our customers and maximising the Glantus exposure in
the sector.
Glantus has set a high bar in terms of compliance, data and risk management
successfully gaining re accreditations in ISO 27701, ISO 27001 and ISO 9001
across the Group.
Community & environment
The global pandemic has presented opportunities to companies to rethink their
approach to environmental impact and we are committed to reducing our
environmental footprint. In the last year we have reviewed our business
operations, maximised our resources and reduced our footprint in all our
office locations.
Outlook
Trading in the new financial year has been in line with the Boards'
expectations and the business model and strategy provides a strong platform
for significant growth. Looking forward, the Board has the confidence of the
continued and sustained demand for the Glantus solutions and the enormous
potential for additional products to be integrated onto the Glantus platform.
We will achieve operational efficiencies as we continue to evolve and look to
the future with confidence.
My sincere thanks go to the entire Glantus team of diligent, creative, and
talented professionals. We look forward to 2022 with increased confidence and
determination to grow our organisation globally to be a leading SaaS platform
in the AP space and provide an exceptional return to our shareholders.
Maurice Healy
Chief Executive Officer
30 May 2022
Financial Review
Chief Financial Officer's statement
We are pleased to report strong results in key financial metrics resulting
from both organic and acquisitive growth.
Key Performance Indicators
€'000 FY21 FY20 YoY Change
Revenue inc. other income 10,740 8,453 27%
Gross Profit 8,345 6,585 27%
Gross Profit % 79% 81% -2%
Adjusted EBITDA 1 (#_ftn1) 3,103 2,077 49%
Adjusted EBITDA 2 (#_ftn2) % 29% 25% 16%
Adjusted operating profit 3 (#_ftn3) 1,676 1,358 23%
Adjusted Profit before tax 709 684 4%
Closing cash and cash equivalents 2,353 1,891 24%
Basic & diluted EPS (cents)3 (6.89) (1.19) 479%
Adjusted basic EPS (cents) 4 (#_ftn4) 9.36 7.90 18%
Adjusted diluted EPS (cents)3 8.73 7.32 19%
Customer Numbers 430 328 31%
Subscription Churn Rate 2.9% 6.9% -58%
1. Adjusted to exclude exceptional costs
2. Adjusted to exclude exceptional costs
3. The weighted average number of shares in EPS calculation reflects
a position as though the total numbers of Ordinary Shares of 35,408,185
(including outstanding share options of 2,712,970) were in issue at the year
ended 31 December 2020. The retrospective treatment of the FY20 comparatives
is required to reflect the share capital reorganisation which took place in
April 2021. The weighted average number of shares in issue at 31 December
2021 takes into account the issue of 11,298,794 shares issued as a result of
the IPO and acquisitions.
Revenue and other Income growth of 27% to €10.7m (FY20: €8.5m) came as a
result of strong organic trading performance and acquisition of Technology
Insights Corporation in July 2021 and Meridian Cost Benefit in November 2021.
Adjusted EBITDA growth of 49% to €3.1m (FY20: €2.1m) reflects increased
revenue and robust cost control at operational level and acquisition
efficiencies.
Adjusted Gross Profit slightly reduced to 79% as a result of mix of revenue
streams in 2021.
Customer numbers continue to grow with focus on tier 1 customers, subscription
churn is low at 2.9% demonstrating the value and dependency customers place on
the SaaS solutions.
Reconciliation of statutory figures to alternative performance measures
FY21 FY20
Note € '000 € '000
Revenue trading 3 10,523 8,171
Other income 217 282
Cost of sales (2,178) (1,586)
Adjusted Gross profit 8,562 6,867
Administrative expenses (5,459) (4,790)
Adjusted EBITDA 3,103 2,077
Amortisation of development costs and goodwill (1,229) (482)
Depreciation (198) (237)
Adjusted Operating profit 1,676 1,358
Finance costs (967) (674)
Adjusted Profit on ordinary activities before taxation 709 684
Exceptional Items 6 (2,948) (794)
Share Based Payments (24) (91)
Loss before taxation (2,263) (201)
Income tax (22) (111)
Loss for the financial year (2,285) (312)
Other comprehensive loss for the year 126 (5)
Total comprehensive loss for the year attributable to the owners of the Group (2,159) (317)
Revenue
Total revenue and other income recognised in the year increased by 27% to
€10.7m (FY20: €8.5m) with growth in both recurring and non-recurring
revenue streams.
Total subscription and transactional revenue increased to €9m from €7.5m
in FY20.
Professional services revenue increased by €0.8m from €0.6m attributable
to delivery of backlog in 2020 orders as a result of impact of COVID on
customers' business.
Other income of €271K represents primarily grants received for investment in
R&D projects with total trading income at €10.5m.
Revenue model and sources of revenue
Glantus generates revenue through recurring annual contracted subscription
revenue ("ARR") and transactional revenue from recovery audit and professional
services.
Recurring revenue is the revenue that annually repeats either under
contractual subscription or predictable transactional billing. Subscription
revenue increased 79% to €3.9m (FY20: €2.1m). Of this increase €1.1m
is attributable to acquisition of Technology Insights Corporation and €1.0m
is from organic growth of subscriptions demonstrating a continued growth trend
underpinning future revenue forecasts.
Total annualised subscription revenue as of 31 December 2021 was €5.2m
(FY20: €2.2m). Subscription churn remains very low at 2.9% with the
average length of customer relationships being over 7 years demonstrating the
continued value customers are deriving from the Glantus product offering.
All of Glantus' products are interlinked and can be sold separately or
together. Recovery audit solutions can be sold independent of software
solutions or combined as a package which together maximises the operational
efficiencies and working capital recovery for the customer.
FY21 FY20
€ '000 % Split € '000 % Split
Subscription Revenue 3,857 37% 2,149 26%
Transactional Revenue 5,193 49% 5,383 66%
Total recurring Revenue 9,050 86% 7,532 92%
Professional Services Revenues 1,473 14% 639 8%
Reported revenue 10,523 8,171
Geographical split
FY21 FY20
€ '000 % Split € '000 % Split
Amount of revenue by region:
United Kingdom 3,878 37% 2,577 32%
United States of America 3,679 35% 3,832 47%
Republic of Ireland 2,478 24% 1,382 17%
Others 488 5% 380 5%
Reported Revenue 10,523 8,171
The Company's customers are located primarily in UK, Ireland and US with 5%
(FY20: 5%) deriving from other countries in Europe, Asia and Africa.
Transactional revenues in the US declined in 2021 as a result of the impact of
customer spend due to COVID however this is showing signs of recovery in 2022.
Adjusted Gross Profit
Adjusted gross profit increased by 25% to €8.6m (FY20: €6.9m) which
reflects the addition of acquisitions in 2021. Gross Profit % reduced
slightly to 79% (FY20: 81%) as a result of mix of revenue streams in 2021.
Adjusted EBITDA
Management has presented the performance measure 'adjusted EBITDA' as it
monitors this performance measure at a consolidated level, and the Board
considers that this metric provides the best measure of assessing underlying
trading performances.
Adjusted EBITDA is calculated by adjusting profit before taxation to exclude
the impact of net finance costs, depreciation, amortisation, share based
payment charges and exceptional items.
FY21 FY20
€ '000 € '000
Operating (Loss)/profit (1,296) 473
Amortisation 1,229 482
Depreciation 198 237
Exceptional Items 2,948 794
Share Based payments 24 91
Adjusted EBITDA 3,103 2,077
Adjusted EBITDA % 29.5% 25.4%
Adjusted EBITDA increased by 49% to €3.1m (FY20: €2.1m) reflecting growth
in revenue and significant operational cost efficiencies both in automation of
processes and general overhead efficiencies implemented in 2020.
The exceptional items include acquisition costs, post-acquisition
restructuring costs and IPO admission costs (see Note 6).
Exceptional costs
Exceptional costs include fee costs related to the IPO of €0.9m, payment to
senior lender Beachpoint Capital of €1m as part of a fee arrangement which
triggered on change of control at IPO. AIM admission totalled €1.8m -
€0.9m exceptional cost within the statement of comprehensive income and
€0.9m booked in the share premium account.
Acquisition costs of €1m relate to legal and professional fees for
acquisition of Technology Insight Corporation and Meridian Cost Benefit in
2021.
Other exceptional items include €0.5m restructuring costs as a result of the
integration of acquisitions and a benefit of €0.5m being US PPP (Payroll
Protection Program) loan forgiveness which is a US Government COVID business
support scheme.
Exceptional Costs FY21 FY20
€ '000 € '000
Acquisition costs 1,015 546
Restructuring costs 489 745
AIM Admission costs 902 -
Fee to Beachpoint Capital on IPO admission 1,000 -
Other exceptional (income) (458) (497)
Total exceptional items 2,948 794
Share based payments
Share based payments account for changes to share options outstanding as of 31
December 2021.
Adjusted profit before tax
Operating Loss before tax was adjusted to exclude exceptional items creating
an adjusted operating profit which increased by 23% to €1.7m (FY20: €1.4m)
After financing expense, profit before tax adjusted to exclude exceptional
items increased 4% to €0.70m (FY20: €0.68m.
Earnings per Share
In preparation for admission to AIM a capital restructuring was implemented in
April 2021 with a 25 million bonus share issue. Weighted average of ordinary
shares has been adjusted to reflect the bonus share issue (see Note 7).
Basic earnings per share is calculated by dividing the net loss for the year
attributable to ordinary shareholders by the weighted average number of
ordinary shares outstanding during the year.
FY21 FY20
Earnings € '000 € '000
Loss for the year (2,285) (312)
Taxation 22 111
Amortisation 1,229 482
Depreciation 198 237
Exceptional items 2,948 794
Share based payments 24 91
Finance costs 967 674
Adjusted Earnings 3,103 2,077
Number Number
Weighted average number of ordinary shares '000 '000
Total shares in issue (weighted) 33,168 26,275
Total diluted shares (weighted) 35,548 28,389
EPS Cent Cent
Basic & diluted EPS (6.89) (1.19)
Adjusted EPS Cent Cent
Basic EPS 9.36 7.90
Diluted EPS 8.73 7.32
Adjusted EPS is not a defined performance measure in IFRS. The Group's
definition of adjusted EPS may not be comparable with similarly titled
performance measures disclosures by other entities.
Cashflow
Operating cashflow was €0.4m used within 2021 partly due to an increase in
working capital as at 31 December 2021. It is expected this will convert to
cash in 2022.
Cash used in investing activities was primarily for acquisition of Technology
Insights Corporation and Meridian Cost Benefit totalling €6.9m.
Payment of deferred consideration of €2.4m comprised €2m to JPD Financial,
acquired in 2020, which completes the total acquisition consideration and
€0.4m to Technology Insights Corporation in December 2021.
Cash spend on R&D investment totalled €1.2m for the year.
Cash earned from financing activities was €11.3m largely driven from IPO
funds raised on admission to AIM. The IPO fees were €1.8m and €1m fee to
Beachpoint Capital on IPO admission.
The Group also received debt €5m funding from Beachpoint Capital in July
2021 which was utilised for the acquisition of Technology Insights
Corporation.
Debt Funding
Total debt outstanding as of 31 December 2021 was €10.9m. This was largely
made up of Beachpoint Capital loan facility of €10.4m and Bank of Ireland
€0.2m and Enterprise Ireland €0.3m. It is the Company's intention to
refinance the existing senior debt in 2022.
Gráinne McKeown
Chief Financial Officer
30 May 2022
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Year ended 31 December Year ended 31 December
2021 2020
Note € '000 € '000
Revenue 3 10,523 8,171
Cost of sales (2,178) (1,586)
Gross profit 8,345 6,585
Administrative expenses (5,459) (4,790)
Exceptional items 6 (2,948) (794)
Share based payments (24) (91)
Amortisation (1,229) (482)
Depreciation (198) (237)
Other income 217 282
Operating (loss)/profit (1,296) 473
Finance costs (967) (674)
Loss on ordinary activities before taxation (2,263) (201)
Income tax (22) (111)
Loss for the financial year (2,285) (312)
Other comprehensive income / (loss) for the year 126 (5)
Total comprehensive loss for the year attributable to (2,159) (317)
the owners of the Group
Loss per share - basic & diluted (cent) 7 (6.89) (1.19)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at As at
31 December 31 December
2021 2020
Note € '000 € '000
ASSETS
NON-CURRENT ASSETS
Intangible assets 9 17,509 7,251
Property, plant and equipment 240 355
17,749 7,606
CURRENT ASSETS
Trade and other receivables 6,751 2,909
Cash and cash equivalents 2,353 1,891
9,104 4,800
TOTAL ASSETS 26,853 12,406
EQUITY AND LIABILITIES
EQUITY
Called up share capital presented as equity 8 38 1
Share premium 12,083 1,000
Reorganisation reserve 656 656
Foreign exchange reserve (44) (170)
Share option reserve 115 91
Retained earnings (2,791) (1,481)
TOTAL EQUITY 10,057 97
CURRENT LIABILITIES
Trade and other payables 6,268 7,726
NON-CURRENT LIABILITIES
Long term liabilities 10,528 4,583
TOTAL LIABILITIES 16,796 12,309
TOTAL LIABILITIES AND EQUITY 26,853 12,406
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Called up share capital presented as equity Share Premium account Reorganisation Reserve Foreign exchange reserves arising on translation Share Option reserve Retained earnings Total
Note € '000 € '000 € '000 € '000 € '000 € '000 € '000
At 1 January 2020 1 1,000 656 (165) (1,169) 323
Share based payment 91 91
charge
Total comprehensive loss for the year (5) (312) (317)
At 31 December 2020 1 1,000 656 (170) 91 (1,481) 97
At 1 January 2021 1 1,000 656 (170) 91 (1,481) 97
Share based payment charge 24 24
Reorganisation for AIM 25 (1,000) 975 -
Listing
8
Issue of 12 12,083 12,095
shares
8
Total comprehensive loss for the year 126 (2,285) (2,159)
At 31 December 2021 38 12,083 656 (44) 115 (2,791) 10,057
CONSOLIDATED STATEMENT OF CASHFLOWS
Year Ended Year Ended
31 December 31 December
2021 2020
Note € '000 € '000
Cash flows from operating activities
Group loss after tax (2,285) (312)
Adjusted for:
Interest payable 967 674
R&D tax credit income (72) (82)
Income tax expense 22 111
Depreciation 198 237
Amortisation 1,229 482
Movement in trade and other receivables (2,339) 471
Movement in trade and other payables 1,795 310
Loss on disposal of tangible assets 17 1
Net tax received (4) 60
R&D refund received (72) 26
Share-based payment expense 24 91
Effects of movement in exchange rates 126 (5)
Net cash flows (used in)/generated from operating activities (394) 2,064
Cash flows from investing activities
Purchase of property, plant and equipment (37) (70)
Payment for acquisition of subsidiaries, net of cash acquired 10 (6,853) (1,907)
Payment of deferred consideration (2,364) (250)
Payment for software development asset (1,189) (732)
Net cash used in investing activities (10,443) (2,959)
Cash flow from financing activities
Loans received 11 4,537 628
Interest payable (967) (673)
IPO - Exceptional costs (2,948) -
Equity (Proceeds from issue of shares) 11,614 -
Equity (IPO costs against share premium) (937) -
Net cash generated from/(used in) financing activities 11,299 (45)
Net increase/(decrease) in cash and cash equivalents 462 (940)
Cash and cash equivalents at the beginning of the year 1,891 2,831
Cash and cash equivalents at the end of the year 2,353 1,891
Notes to the financial information
1. General Information
Glantus Holdings Plc and its subsidiaries ("the Group") is a public limited
company incorporated in the Republic of Ireland. The registered office is
Marina House, Block V, Eastpoint Business Park, Dublin, D03 AX24. The
Company was admitted to AIM on 11th May 2021.
The principal activity of the Group is the specialist provision of next
generation and world class software platforms focused on manufacturing,
distribution and related industries.
2. Accounting policies
Basis of preparation
The financial information set out herein does not constitute statutory
accounts. The financial information for the year ended 31 December 2021 has
been extracted from the Company's draft audited financial statements. The
annual report and statutory accounts for the year ended 31 December 2021 will
be finalised shortly on the basis of the financial information presented in
this announcement. This announcement was approved on behalf of the Board of
Directors on 27 May 2022.
The comparative figures for the year ended 31 December 2020 have been
extracted from the financial statements prepared for the Company's admission
onto the Alternative Investment Market of the London Stock Exchange and were
included in the Company's admission document.
The statutory financial statements for the year ended 31 December 2020 were
prepared in accordance with FRS 102, the Financial Reporting Standard
applicable in the UK and Republic of Ireland.
On admission to AIM, the Company adopted International Financial Reporting
Standards and interpretations (collectively "IFRS") issued by the
International Accounting Standards Board ("IASB") as adopted by the European
Union. The financial information in this announcement has been prepared and
presented on that basis.
The information included in this financial announcement has been prepared on a
going concern basis under the historical cost convention, and in accordance
with International Financial Reporting Standards ("IFRS") as adopted by the
European Union and the International Financial Reporting Interpretations
Committee ("IFRIC") interpretations issued by the International Accounting
Standards Board ("IASB") that are effective as at the date of this financial
information and in accordance with the provisions of the Companies Act, 2014.
The Group's accounting policies are set out in the Company's admission
document.
Going concern
At the time of approving this financial information, the directors have a
reasonable expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future. Accordingly, the directors
continue to adopt the going concern basis of accounting in preparing the
financial information.
3. Revenue
Segmental
information
Segmental information is presented in respect of the Group's geographical
regions and operating segments in accordance with IFRS 8 'Operating Segments'.
The Board considers that there is one identifiable business segment being the
provision of software solutions including related recovery audit
services.
Recurring revenue is the revenue that annually repeats either under
contractual subscription or predicable transactional billing.
Year ended 31 December Year ended 31 December
2021 2020
€ '000 € '000
Recurring Revenue 9,050 7,532
Non-recurring revenue 1,473 639
Reported revenue 10,523 8,171
Recurring as % of total revenue 86% 92%
Year ended 31 December Year ended 31 December
2021 2020
€ '000 € '000
Amount of revenue by class of activity:
Recurring annual subscriptions 3,857 2,149
Recurring recovery services 5,193 5,383
Professional services & licences 1,473 639
Reported revenue 10,523 8,171
3. Revenue (Continued)
Geographical
analysis
The Group operates in three principal geographical regions being Republic of
Ireland, the United Kingdom and the United States of America. The Group has
customers in other countries such as Singapore, Australia, Spain, Switzerland,
Canada, Mexico and the Netherlands, which are not material for separate
identification.
Year ended 31 December Year ended 31 December
2021 2020
€ '000 € '000
Amount of revenue by region:
United Kingdom 3,878 2,577
United States of America 3,679 3,832
Republic of Ireland 2,478 1,382
Others 488 380
Reported Revenue 10,523 8,171
4. Adjusted EBITDA
Management has presented adjusted EBITDA as it monitors this performance
measure at a consolidated level, and the Board considers that this metric
provides the best measure of assessing underlying trading performance.
Adjusted EBITDA is calculated by adjusting profit or loss before taxation to
exclude the impact of net finance costs, depreciation, amortisation, share
based payment charges and exceptional items.
The exceptional items include acquisition costs and costs incurred in
post-acquisition restructuring and are further detailed in Note 6 below.
Year ended Year ended 31 December
31 December
2021 2020
€ '000 € '000
Operating (Loss)/profit (1,296) 473
Amortisation 1,229 482
Depreciation 198 237
Exceptional items 2,948 794
Share based payments 24 91
Adjusted EBITDA 3,103 2,077
Adjusted EBITDA % of revenue 29.5% 25.4%
5. Adjusted Profit before Tax
Year ended 31 December Year ended 31 December
2021 2020
€ '000 € '000
Loss on ordinary activities before tax (2,263) (201)
Exceptional items 2,948 794
Share based payments 24 91
Adjusted Profit before Tax 709 684
6. Exceptional Items
The exceptional items include IPO costs, acquisition costs and costs incurred
in post-acquisition restructuring.
Year ended 31 December Year ended
31 December
2021 2020
€ '000 € '000
Acquisition costs 1,015 546
Restructuring costs 489 745
AIM Admission costs 902 -
Fee to Beachpoint Capital on IPO admission 1,000 -
Other exceptional income (458) (497)
Total exceptional items 2,948 794
Total costs for AIM admission totalled €1.8m; €0.9m included as
exceptional costs within the statement of comprehensive income and €0.9m
offset against the share premium account.
Other exceptional Income relates to US government loan forgiveness under PPP
(Payroll Protection Program) COVID support initiative for employers.
7. Earnings per share
Basic earnings per share is calculated by dividing the net loss for the year
attributable to ordinary shareholders by the weighted average number of
ordinary shares outstanding during the year.
In preparation for admission to AIM a capital restructuring was implemented in
April 2021 with a 25 million bonus share issue. The weighted average of
ordinary shares has been adjusted to reflect the bonus share issue.
Year ended 31 December Year ended 31 December
2021 2020
Earnings € '000 € '000
Loss for the year (2,285) (312)
Taxation 22 111
Amortisation 1,229 482
Depreciation 198 237
Exceptional items 2,948 794
Share based payments 24 91
Finance costs 967 674
Adjusted Earnings 3,103 2,077
Number Number
Weighted average number of ordinary shares '000 '000
Total shares in issue (weighted) 33,168 26,275
Total diluted shares (weighted) 35,548 28,389
EPS Cent Cent
Basic & diluted EPS (6.89) (1.19)
Adjusted EPS Cent Cent
Adjusted basic EPS 9.36 7.90
Adjusted diluted EPS 8.73 7.32
Adjusted EPS is not a defined performance measure in IFRS. The Group's
definition of adjusted EPS may not be comparable with similarly titled
performance measures disclosures by other entities.
8. Share Capital
Ordinary Shares Share Capital Share Premium
Number @ €0.001 each € €
Opening position at 1 January 2021 1,275,444 1,275 999,791
Bonus share issue pre admission reorganisation 25,000,000 25,000 (25,000)
Reduction in share premium (974,791)
Share options exercised 259,078 259 21,854
Shares issued 11,298,794 11,299 12,997,843
AIM admission costs offset against share premium (936,984)
At 31 December 2021 37,833,316 37,833 12,082,713
In connection with the admission, the Company undertook a number of steps to
reorganise its share capital as follows:
1. On 9 April 2021, the Company had share premium of €999,791. €25,000
of the share premium was capitalised and applied in paying up in full unissued
shares allotted as fully paid bonus shares to the holders of the Ordinary
Shares.
2. On 9 April 2021, share premium account was reduced by €974,791 to
nil.
3. On 13 April 2021, 300,000 Preference Shares with Enterprise Ireland
totalling €300,000 were paid up and cancelled.
4. On 11 May 2021, 196,078 ordinary shares were issued on exercising of share
options.
5. On 11 May 2021, 9,803,909 Ordinary shares were issued as part of admission.
6. Following admission total ordinary share capital of the Company was
36,275,431 shares @ €0.001.
7. On 15 July 2021, 913,490 Ordinary shares were issued as part of Technology
Insights Corporation acquisition.
8. On 28 July 2021, 63,000 ordinary shares were issued on exercising of share
options.
9. On 24 Nov 2021, 581,395 Ordinary shares were issued as part of Meridian
Cost Benefit acquisition.
9. Intangible Assets
The carrying value of intangible assets rose from €7.2m as at 31 December
2020 to €17.5m as at 31 December 2021.
€10.4m of intangible assets were recognised on acquisitions during the year
together with a credit of €0.1m for deferred consideration.
Additionally, €1.2m of development expenditure costs were capitalised and
the total amortisation charge was €1.2m.
10. Cashflow used in investing activities
Cashflow used for acquisitions in 2021 was made up of:
Year ended 31 December
2021
€ '000
Technology Insights Corporation 5,529
Meridian Cost Benefit 1,324
Cashflow used in acquisitions 6,853
11. Loans received
An additional loan of €5m was received in 2021 from Beachpoint Capital as
part of the acquisition of Technology Insights Corporation.
Availability of this announcement
Copies of this announcement are available from the Company's website,
www.glantus.com (http://www.glantus.com)
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