REG - GRC Intnl.Group PLC - Half-year Report
20/12/2023 07:00
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RNS Number : 3671X GRC International Group PLC 20 December 2023
20 December 2023
GRC International Group Plc
("GRC" or the "Group")
Interim results for the period ended 30 September 2023
Continued revenue growth and EBITDA positivity
Improved revenue quality with substantial ARR growth
GRC International Group PLC (AIM: GRC), an integrated cyber security and
privacy solutions business, announces its unaudited interim results for the
six months ended 30 September 2023.
Financial highlights
· Revenue up 4% to £7.6m (H1 FY23: £7.3m.
· Qualifications revenue up 24% to £1.5m (H1 FY23: £1.2m).
· GDPR Compliance revenue up 11% to £746k (H1 FY23: £671k).
· Professional services revenue up 6% to £4.8m (H1 FY23: £4.5m).
· Web revenue up 5% to £4.9m (H1 FY23: £4.6m).
· ARR (Annualised Recurring Revenue) at period end up 36% to
£11.0m (H1 FY23: 8.2m).
· Recurring and contracted revenue up 8% to £5.5m (H1 FY23:
£5.1m).
· 72% (H1 FY23: 71%) of revenue generated from recurring and
contracted revenue contracts.
· Gross margin of 61% (H1 FY23: 60%) - continued improvement
reflects operational gearing from subscription services and internal
efficiencies from automation projects.
· Adjusted EBITDA1 of £0.2m (H1 FY23: £0.4m).
· Loss before tax of £0.9m (H1 FY23: £0.5m) driven by
amortisation from the investment in capital expenditure to fuel future growth
of £0.9m (H1 FY23: £1.0m).
· Cash balances at period end of £0.0m (H1 FY23: £0.2m). Facility
headroom circa £0.4m (H1 FY23: £0.4m). Borrowings (excluding lease
obligations) of £1.5m (H1 FY23 £0.8m).
Operational highlights
· Increased CyberComply ARR by 40% to £528k (H1 FY23: £378k).
· ITG EU billings2 up 20% to £410k (H1 FY23: £341k).
· Improved training value for money: training delegate numbers up
4% to 876 (H1 FY23: 839) and average delegate revenue up by 20% to £1.7k (H1
FY23: £1.4k).
· Increased investment in overhead improved the quality and
efficiency of customer delivery, leading to a further increase in Group NPS
(net promoter score) to 58 (H1 FY23: 54). Scores over 50 indicate customer
service rating of 'Excellent'.
Outlook
· Continued investment in the CyberComply platform and our product
suite.
· The Board expects that these investments will support an
acceleration in revenue growth through Q3 and for compliance pressures to
drive a very strong Q4. However, full year results will inevitably depend on
Q4 expectations being realised.
· The Group's trading performance is historically H2 weighted, and
the Board expects to see that patten continue in the current year.
· The Board remains confident that the Company will meet market
expectations for the full year to 31 March 2024*.
*GRC believes that current consensus market expectations for the year ending
31 March 2024 prior to the publication of this announcement are revenues of
£17.0 million and adjusted EBITDA of £1.1 million.
1 EBITDA is defined within the Financial Review of this announcement.
2 Billings equate to the total value (net of VAT) of invoices raised and cash
sales through the Group's websites. Billings is considered by the Board to be
a key metric for managing the business due to billings' direct relationship
with cashflow. Cash receipts are driven by billings achieved each month rather
than revenue recognised in accordance with IFRS.
Alan Calder, Chief Executive Officer, said:
"We continued in H1 FY24 to grow overall revenue, generate positive EBITDA,
improve our customer quality scores, generate substantial Intellectual
Property, and develop our longer-term delivery capabilities. We expect the
development work done in H1 to accelerate revenue growth through H2 and as
such, the Board is confident that the Company will meet market expectations
for the full year to 31 March 2024.
CyberComply, our cyber security and compliance platform, is at the heart of
our long-term strategy for growth. We made substantial progress, during H1,
both in functionality improvements and in revenue, with CyberComply-specific
ARR up 40% HY on HY.
Although economic and geo-political headwinds persist, we expect their effects
to continue being counter-balanced by the impact on GRC of the requirements of
a rapidly increasing cyber and privacy regulation and enforcement (such as
GDPR, DORA and SEC Regulations) in the UK, the EU, the US and elsewhere."
Enquiries:
GRC International Group plc +44 (0) 330 999 0222
Alan Calder, Chief Executive Officer
Christopher Hartshorne, Finance Director
Singer Capital Markets (Nominated Adviser and Joint
Broker)
+44 (0)20 7496 3000
Phil Davies, James Fischer
Dowgate Capital Limited (Joint
Broker)
+44 (0) 20 3903 7715
James Serjeant, Russell Cook, Nicholas Chambers
About GRC International Group PLC ("GRC" or "the Group")
GRC is an international governance, risk management and compliance company
whose main business is cyber defence-in-depth.
A technology business, its proprietary premier brands including the market
leader, IT Governance, offer 'Our expertise, your peace of mind' for GRC's
wide range of domestic and international corporate customers across all
industrial sectors.
GRC's three operating divisions - Software as a Service (SaaS), E-Commerce and
Services - offer a wide range of products and services encompassing: IT
governance, risk management, compliance with data protection and cyber
security regulations, online and in-person training and staff awareness,
consultancy, online publishing and distribution, as well as software. The
Group's capabilities also include products and services to enable corporates
to address wider governance issues, such as money laundering and bribery.
In addition to its UK business, GRC has operations in the EU, US and
Asia-Pacific regions.
Chief Executive Review
Overview
GRC continues this year to make progress in its transformation from a services
business to one that is centred around a comprehensive cyber security and
privacy compliance SaaS platform, CyberComply.
40% growth v H1 FY23in CyberComply-specific ARR demonstrates that our
customers buy-in to our vision of how best to manage cyber security compliance
in today's increasingly complex regulatory environment. Encouragingly, in
spite of geo-political and economic headwinds, we continued to generate
positive EBITDA as well as overall revenue growth. We had a marginal
improvement in gross margin % as well as another improvement in our NPS
service quality results. Most importantly, our focus on quality of earnings
shows in the significant 36% increase in our overall ARR v H1 FYH23.
Strategy
Our strategy and the drivers for growth remain unchanged.
· Corporates, large and small, domestic and multinational, have
to deal with a growing number of increasingly complex regulations and
enforcement in the Group's three primary geographic markets of the UK, EU and
US.
· All clients face escalating nation-state and criminal
(serious organised crime) cyber-attacks.
· There are significant and deep-seated national and
international cyber and compliance skills deficits.
· Technological security solutions are inadequate to the
challenge, which is primarily one of insider risk and human susceptibilities.
In this environment, our strategy is to offer an integrated suite of sensibly
priced, high-quality GRC products and services on an increasingly longer-term
contracted basis. The proliferation of legal requirements (both cyber and
privacy and customer-mandated security practices) is driving organisations to
start looking for compliance platforms that can systematically and cost
effectively support their risk management strategies. Our ongoing investment
in our CyberComply platform and in our e-commerce websites are both important
elements of what we see as the development of a cyber regulation technology
('cyber reg tech') market. This is a market that we aspire to lead.
In the longer term, we plan to accelerate growth nationally and
internationally, organically and by acquisition. Today's fragmented and
rapidly growing international cyber markets offer significant organic and
consolidation opportunities. We believe that the Group's proven resilience and
agility will enable it to exploit those opportunities in the years ahead.
The Group's medium-term objective is to build annual revenue, both organically
and through acquisition, to in excess of £50m, with gross margins and EBITDA
margins in the order of 65% and 25% respectively.
Trading outlook
We are continuing to invest in our CyberComply platform, as well as in our
product suite, to help our clients comply with the EU's Digital Operational
Resilience Act, the USA's SEC Cyber Security Regulation, the UK's revised GDPR
and a host of other industry-specific standards (such as PCI DSS, EuroPrivacy
and ISO/IEC 27001). It is expected that these investments will support an
acceleration in revenue growth through Q3 and for compliance pressures to
drive a very strong Q4.
Alan Calder
Chief Executive Officer
Financial Review
Billings
Billings were up 1% to £7.3m (H1 FY23: £7.2m). Billings equate to the total
value of invoices (excluding VAT) raised as cash sales through the Group's
websites. The figure does not take account of accrued or deferred income
adjustments that are required to comply with accounting standards for revenue
recognition. The Board considers billings to be a key performance indicator
because it has a much closer relationship than accounting revenue to cash
receipts from customers. It also provides good forward visibility of future
accounting revenue since much of the Group's invoicing for training and
'ad-hoc' consultancy projects takes place ahead of delivery.
The overall shift within the business towards recurring revenue on monthly
subscriptions and retainer type arrangements means that billings are more
closely aligned with revenue than has been the case historically.
Revenue
Revenue for the six months ended 30 September 2023 was up 4% to £7.6m (H1
FY23: £7.2m).
Despite the uncertainty of the current economic climate, with high inflation,
high interest rates and low levels of overall economic growth, our H1 FY24
revenue was still 3% up on the immediately previous 6 months (H2 FY23:
£7.4m).
H2 is traditionally the Group's stronger trading period, so management are
encouraged to see consecutive periods of growth.
Recurring and contracted revenue was up 8% to £5.5m (H1 FY23: £5.1m). This
accounted for 72% of total revenue (H1 FY23: 71%).
The strong revenue growth (13%) in the E-Commerce division reflects a return
on the investment made in automation and website infrastructure projects,
which have made it easier for customers to purchase and have fulfilled
products and services without the need to interact with salespeople or
administrative staff.
£'m Services Software as a Service (SaaS) E-Commerce Total
H1 FY24 3.9 1.9 1.8 7.6
H1 FY23 3.6 2.1 1.6 7.3
FY FY23 7.0 4.1 3.6 14.7
Period-on-period % Services Software as a Service (SaaS) E-Commerce Total
H1 FY24 vs FY23 8% (10)% 13% 4%
International
International revenue was down 6% to £1.5m (H1 FY23: £1.6m), representing
20% (H1 FY23: 22%) of total Group revenue.
The Group services the majority of its US based clients through its IT
Governance USA business and most of its European clients through its IT
Governance EU business. Invoicing in USD and EUR respectively. The use of
local staff and suppliers in those territories means cost is incurred in local
currency providing a natural partial hedge against foreign exchange risk.
The Group experienced some operational challenges in the US during Q2. These
have been successfully addressed by management and performance entering the
second half of the year is encouraging. The EU and US are considered to be
important future growth markets for the Group.
Gross profit
Gross profit was up 4% to £4.6m (H1 FY23: £4.4m), with gross margin also up
by 100 basis points to 61% (H1 FY23: 60%).
The majority of the Group's direct cost base relates to headcount for
consultants and client delivery staff. The Group's focus on higher-margin
subscription services has driven the overall improvement in margin. In
particular, the growth in retainer type arrangements for some services
contracts has driven margin improvement in the Services division. Margin in
the Services division also benefited from the positive impact of several
operational projects designed to improve efficiency, while investment in
website infrastructure has delivered margin improvement in the e-Commerce
division.
The Board's expected revenue growth in H2, and in particular in Q4, is not
expected to require additional delivery capability, and so H2 margins are
expected to widen.
Segment 6 months to 30 September 2023 Revenue change 6 months to 30 September 2024
Revenue Margin % Revenue Margin
£ £ % £ £ %
Services 3.6 1.7 47% 8% 3.9 2.0 51%
SaaS 2.1 1.7 81% (10)% 1.9 1.3 68%
E-Commerce 1.6 1.0 63% 12% 1.8 1.3 72%
Total 7.3 4.4 60% 4% 7.6 4.6 61%
Administrative expenses
Administrative expenses increased by £0.4m (8%) to £5.3m (H1 FY23: £4.9m).
During FY23 the Group invested in people, marketing and IT spend designed to
fuel the next phase of revenue growth. It is therefore expected that FY24 will
carry this cost in the first half of the year. The Group has now reached a
point in its various software development and automation projects where
overhead is expected to drop as a percentage of revenue through H2.
EBITDA
Adjusted EBITDA (earnings before interest, tax, depreciation and amortization,
adjusted to remove exceptional administrative costs) is considered by the
Board to be an important key performance indicator. The Board believes that it
is a more accurate measure of underlying business performance as it removes
the impact of non-cash accounting adjustments.
Adjusted EBITDA was £0.2m (H1 FY23: £0.4m).
£'M H1 FY24 HY2 FY23 HY1 FY23
Revenue 7.6 7.4 7.3
Operating loss (0.7) (1.0) (0.4)
Depreciation 0.0 0.0 0.1
Amortisation 0.8 0.8 0.7
Exceptional administrative costs 0.1 0.1 0.0
Adjusted EBITDA 0.2 (0.1) 0.4
Adjusted EBITDA as % Revenue 3% (1)% 5%
Finance expense
The net finance expense of £0.2m (H1 FY23: £0.1m) relates to interest on the
Group's borrowings and leases accounted for under IFRS 16.
Loss before tax
Loss before tax was £0.9m (H1 FY23: loss £0.5m).
Taxation
No provision for tax has been made in the period (FY22: £Nil). The tax credit
recognised relates to the unwinding of deferred tax on the acquisition of DQM.
Earnings per share
Loss per share was 0.78 pence (Hi FY23: loss per share 0.48 pence).
Dividend
The Group is not paying a dividend.
Cash flow and cash/debt
The Group's closing cash position net of a bank overdraft was £0.0m (30 September 2022: £0.2m).
Borrowings (excluding lease obligations) at period end were £1.5m (30 September 2022: £0.8m).
The Group has banking facilities to provide adequate headroom for unforeseen working capital requirements by way of an invoice discounting facility that was inherited as part of the acquisition in 2019.
In addition, the unsecured loan facility provided by Andrew Brode for the amount of £700,000 at an interest rate of 5% above the Bank of England base rate to provide additional working capital is available to the Company until at least 31 December 2024 and shall automatically renew for a further 12 months unless terminated by either party. As at the period end and the date of this report, £350,000 remained available to be drawn down.
Statement of financial position
Net assets were £6.6m (30 September 2023: £8.1m).
Net current liabilities at period end were up by £1.4m to £5.6m (30
September 2023: £4.2m).
The trade and other payables balance includes a deferred income balance of
£1.8m (30 September 2023: £1.8m), relating to training and consultancy
projects due to be delivered after the statement of financial position date.
This balance provides some visibility of income to be recognised in H2.
Intangible assets
The Group's accounting policy is that only directly attributable staff costs of the technical teams developing the assets are capitalised. No management time is capitalised, and neither is any proportion of overheads or borrowing costs.
Additions of £0.9m (H1 FY23: £1.0m) relate to software, website development and the development of courseware.
Amortisation of intangible fixed assets was £0.8m (H1 FY23: £0.7m).
Goodwill arising from business combinations has been allocated to the Group's DQM cash-generating unit ('CGU').
Goodwill was £6.8m (30 September 2022: £6.8m).
Goodwill is tested at least annually for impairment and whenever there are indications that goodwill might be impaired.
Capital structure
The issued share capital at 30 September 2023 was 107,826,246 (30 September 2022: 107,826,246) ordinary shares of £0.001 each.
There were no share options granted in the period to 30 September 2023.
Risks and uncertainties
The Board continually assesses and monitors the key risks of the business. The key risks that could affect the Group's
performance, and the factors that mitigate these risks, are set out on pages 24 to 25 of the Group's Annual Report for 2023 (a copy of which is available from the Group's website (
www.grci.group (http://www.grci.group)
).
Chris Hartshorne
Finance Director
UNAUDITED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
6 months to 30 September 2023 unaudited 12 months to 31 March 2023 audited 6 months to 30 September 2022
unaudited
Notes £'000 £'000 £'000
Revenue 7,573 14,660 7,287
Cost of sales (2,998) (5,783) (2,885)
Gross profit 4,575 8,877 4,402
Administrative expenses (5,279) (10,423) (4,917)
Other operating income 18 121 48
Operating loss (686) (1,425) (467)
Net financing costs (169) (190) (72)
Share of post-tax loss of equity-accounted joint ventures (17) - -
Loss before taxation (862) (1,615) (539)
Taxation 21 365 21
Loss for the financial period (841) (1,250) (518)
Loss for the financial period attributable to:
Equity shareholders of the parent (841) (1,250) (518)
Basic loss per share (pence) (0.78) (1.16) (0.48)
Diluted loss per share (pence) (0.78) (1.16) (0.48)
All of the Group's loss relates to continuing operations.
The accompanying accounting policies and notes form an integral part of these
financial statements.
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
Notes 6 months to 30 September 2023 unaudited 12 months to 31 March 2023 audited 6 months to 30 September 2022
unaudited
£'000 £'000 £'000
Loss for the period (841) (1,250) (518)
Other comprehensive loss - items that may subsequently be reclassified to
profit/loss:
(1) (21) (35)
Other comprehensive loss for the financial period (1) (21) (35)
Total comprehensive loss for the financial period (1) (21) (35)
Total comprehensive loss attributable to equity shareholders of the parent
(842) (1,271) (553)
The accompanying accounting policies and notes form an integral part of these
financial statements.
UNAUDITED CONSOLIDATED BALANCE SHEET
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
6 months to 30 September 2023 unaudited 12 months to 31 March 2023 audited 6 months to 30 September 2022
unaudited
Notes £'000 £'000 £'000
ASSETS
Non-current assets
Goodwill 6,804 6,804 6,804
Intangible assets 5,663 5,616 5,876
Property, plant and equipment 218 248 293
Investments in equity-accounted joint ventures 19 17 17
12,704 12,685 12,990
Current assets
Trade and other receivables 1,509 1,611 1,376
Current tax - 37 -
Cash at bank 27 139 199
1,536 1,787 1,575
Current liabilities
Trade and other payables (5,655) (5,291) (4,975)
Borrowings (1,269) (1,074) (526)
Lease liabilities (46) (58) (101)
Current tax (127) - (127)
(7,097) (6,423) (5,729)
Net current liabilities (5,561) (4,636) (4,154)
Non-current liabilities
Trade and other payables - (8) -
Borrowings (199) (215) (252)
Lease obligations (76) (95) (119)
Deferred tax liability (280) (301) (317)
(555) (619) (688)
Net assets 6,588 7,430 8,148
Equity
Share capital 108 108 108
Share premium 16,012 16,012 16,012
Merger reserve 4,276 4,276 4,276
Share-based payment reserve 126 126 126
Translation reserve (31) (30) (44)
Accumulated deficit (13,903) (13,062) (12,330)
Total equity 6,588 7,430 8,148
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
Share-based payment reserve
Share premium Merger reserve Retained deficit Translation reserve
Share capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 April 2022 (audited) 108 16,012 4,276 126 (11,812) (9) 8,701
Loss for the period - - - - (1,250) - (1,250)
Foreign exchange difference on consolidation
- - - - - (21) (21)
Total comprehensive loss for the period - - - - (1,250) (21) (1,271)
At 31 March 2023 (audited) 108 16,012 4,276 126 (13,062) (30) 7,430
Loss for the period - - - - (841) - (841)
Foreign exchange difference on consolidation
- - - - - (1) (1)
Total comprehensive loss for the period - - - - (841) (1) (842)
At 30 September 2023 (unaudited) 108 16,012 4,276 126 (13,903) (31) 6,588
Share-based payment reserve
Share premium Merger reserve Retained deficit Translation reserve
Share capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 April 2022 (audited) 108 16,012 4,276 126 (11,812) (9) 8,701
Loss for the period - - - - (518) - (518)
Foreign exchange difference on consolidation
- - - - - (35) (35)
Total comprehensive loss for the period - - - - (518) (35) (553)
At 30 September 2022 (unaudited) 108 16,012 4,276 126 (12,330) (44) 8,148
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
6 months to 30 September 2023 unaudited 6 months to 30 September 2022 unaudited
12 months to 31 March 2023 audited
Notes £'000 £'000 £'000
Cash flows from operating activities
Loss for the period (841) (1,250) (518)
Adjustments for:
Depreciation of plant and equipment 16 37 19
Amortisation of right of use assets 27 95 47
Amortisation of intangible fixed assets 817 1,523 719
Foreign exchange loss/(gain) 11 2 (4)
Share of post-tax loss of equity-accounted joint venture 7 - -
Finance expenses 169 190 72
Income tax credit (21) (365) (21)
232 314
Decrease in trade and other receivables 101 9 252
Increase in trade and other payables 350 (750) (1,086)
636 (509) (520)
Income tax refund 164 163 -
Net cash inflow/(outflow) from operating activities 800 (346) (520)
Investing activities
Purchase of intangible assets (864) (1,506) (963)
Purchase of plant and equipment (15) (50) (37)
Acquisition of joint venture investment (9) - -
Net cash outflow from investing activities (888) (1,556) (1,291)
Financing activities
Proceeds from borrowings 665 875 -
Repayment of borrowings (497) (658) (284)
Interest paid (152) (155) (50)
Interest on lease liability on right-of-use assets (6) (14) (13)
Payment of lease liabilities on right-of-use assets (31) (109) (43)
Net cash outflow from financing liabilities (21) (61) (390)
Net decrease in cash and cash equivalents (109) (1,963) (1,910)
Cash and cash equivalents at beginning of financial period 139 2,099 2,099
Effects of exchange rate changes on cash and cash equivalents (3) 3 10
Cash and cash equivalents at end of financial period 27 139 199
Comprising
Cash at bank 27 139 199
1. Nature of operations and general information
GRC International Group plc ('GRC International Group' or 'the Company') is a
public limited company limited by shares, incorporated and domiciled in
England and Wales. The registered company number is 11036180 and the
registered office is Unit 3 Clive Court, Bartholemew's Walk, Cambridgeshire
Business Park, Ely, Cambridgeshire, CB7 4EA.
The principal activities of GRC International Group and its subsidiary
companies is as a one-stop shop for IT governance including books, tools,
learning and consultancy services.
The interim financial statements have not been audited or reviewed by the
auditors.
2. Basis of preparation of half-year report
The condensed consolidated interim financial report for the half-year
reporting period ended 30 September 2022 has been prepared in accordance with
Accounting Standard IAS 34 Interim Financial Reporting.
The results include the results of GRC International Group plc and its
subsidiaries.
A subsidiary is a company controlled directly by the Group. Control is
achieved where the Group has the power over the investee, rights to
variable returns and the ability to use the power to affect the investee's
returns.
Income and expenses of subsidiaries acquired during the year are included in
the Consolidated Income Statement from the effective date of control. When
necessary, adjustments are made to the financial statements of subsidiaries to
bring their accounting policies into line with those used by the Company.
All intra-Group transactions, balances, income, and expenses are eliminated in
full on consolidation.
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 report for the year ended 31 March 2023 and any
public announcements made by GRC International Group plc during the interim
period.
Half-yearly (interim) reports
The comparative financial information for the year ended 31 March 2023 in this
interim report does not constitute statutory accounts for that year.
The statutory accounts for the year ended 31 March 2023 have been delivered to
the Registrar of Companies. The auditors' report on those accounts was
unqualified and did not contain a statement under 498(2) or 498(3) of the
Companies Act 2006.
3. Revenue
Revenue is all derived from continuing operations.
Notwithstanding that the Group's revenues are often interdependent, the Group
has disaggregated revenue into various categories in the following tables
which is intended to depict how the nature, amount, timing and uncertainty of
revenue and cash flows are affected by economic date:
6 months to 30 September 2023 unaudited 6 months to 30 September 2022 unaudited
12 months to 31 March 2023 audited
£'000 £'000 £'000
Consultancy 4,964 9,350 4,807
Publishing and distribution 345 794 392
Software 788 1,760 902
Training 1,476 2,756 1,185
Total revenue 7,573 14,660 7,287
The Group's revenue is analysed as follows for each revenue category:
6 months to 30 September 2023 unaudited 6 months to 30 September 2022 unaudited
12 months to 31 March 2023 audited
£'000 £'000 £'000
Sale of goods 346 794 391
Provision of services 7,227 13,866 6,896
7,573 14,660 7,287
Other operating income * 18 121 48
Total revenue 7,591 14,781 7,335
Other operating income relates to rent received from the sub-let of some of the Group's office space.
4. Earnings per share
Basic earnings per share is based on the loss after tax for the period and the weighted average number of shares in issue during the period.
6 months to 30 September 2023 unaudited 6 months to 30 September 2022 unaudited
12 months to 31 March 2023 audited
£'000 £'000 £'000
Loss attributable to equity holders of the group (841) (1,250) (518)
Weighted average number of shares in issue 107,826 107,826 107,826
Diluted loss per share (pence) (0.78) (1.16) (0.48)
6 months to 30 September 2023 unaudited 6 months to 30 September 2022 unaudited
12 months to 31 March 2023 audited
Number of shares 107,826,246 107,826,246 107,826,246
Dilutive (potential dilutive) effect of share options - - -
Weighted average number of ordinary shares for the purposes of diluted
earnings per share
107,826,246 107,826,246 107,826,246
Diluted loss per share (pence) (0.78) (1.16) (0.48)
Due to the losses incurred during the period, a diluted loss per share has not
been calculated as this would serve to reduce the basic loss per share. There
were 526,760 (2022: 526,760) share options outstanding at the end of the
period that could potentially dilute basic earnings per share in the future.
5. Intangible assets
Marketing tools Publishing products Consultancy products and courseware Software and website costs Trademarks Customer relationships Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
COST
At 1 April 2022 (audited) 66 451 1,218 7,172 466 1,843 11,216
Additions - 83 374 1,049 - - 1,506
Foreign exchange movement - - 3 - - - 3
At March 2023 (audited) 66 534 1,595 8,221 466 1,843 12,725
Additions 1 4 285 574 - - 864
Foreign exchange movement - - (1) - - - (1)
At 30 September 2023 67 538 1,879 8,795 466 1,843 13,588
Accumulated depreciation
At 1 April 2022 (audited) 63 317 526 4,060 147 473 5,586
Charge for period 1 55 119 1,148 46 154 1,523
At 31 March 2023 (audited) 64 372 645 5,208 193 627 7,109
Foreign exchange movement - - (1) - - - (1)
Charge for period - 32 87 599 23 76 817
At 30 September 2023 64 404 731 5,807 216 703 7,925
Net book value
At 30 September 2023 3 134 1,148 2,988 250 1,140 5,663
At 31 March 2023 (audited) 2 162 950 3,013 273 1,216 5,616
Amortisation is included within administrative expenses.
All intangible assets have been developed internally with the exception of
those arising on the business acquisition in 2019. For CGUs requiring
impairment testing under IAS 36 Impairment of Assets, the method used to
determine recoverable amount is value-in-use.
6. Authorised, allotted, issued and fully paid
6 months to 30 September 2023 unaudited 6 months to 30 September 2022 unaudited
12 months to 31 March 2023 audited
Number Number £'000 Number £'000
Ordinary shares of £0.001 each 107,826,246 108 107,826,246 108 107,826,246 108
107,826,246 108 107,826,246 108 107,826,246 108
7. Events after the reporting period
There have been no events that require disclosure in accordance with IAS10,
'Events after the balance sheet date'.
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