REG - i-nexus Global PLC - Customer Update

i-nexus GlobalAnnouncement

17/10/2023 07:00

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RNS Number : 3025Q  i-nexus Global PLC  17 October 2023

17 October 2023

i-nexus Global plc

("i-nexus", the "Company" or the "Group")

Customer Update

i-nexus Global plc (AIM: INX), a leading provider of cloud strategy
applications, announces that it was informed on the afternoon of 16 October
2023 that a major legacy customer, currently generating Monthly Recurring
Revenue ("MRR") of £54k, does not intend to renew its contract at the
calendar year-end. The Board has rapidly put in place mitigating actions such
that the impact on the Group's cash flows is minimised and the adjusted EBITDA
breakeven position can be substantially preserved. Consequently, the Directors
continue to be of the opinion that the Group has sufficient working capital
for its present requirements, that is for at least 12 months from the date of
this release.

Year-end update

The Board is otherwise pleased to report a steady performance in its financial
year to 30 September 2023 ("FY23"), with the Group successfully achieving its
objective to deliver improved double-digit net MRR growth, with MRR increasing
16%, to a year-end exit rate of £289k (FY22: £250k).

A particular highlight during the year was the growth of existing accounts,
securing £36k (FY22: £10k) in MRR and driving an increase in Net Retention
to 107% (FY22: 95%), emphasizing the strength of our client relationships and
quality of our product.  While the market remains challenging for new
customer wins, the Company secured seven new logos in the year (FY22: nine),
with a number of these having expansion opportunities in FY24.

The Group closed FY23 with cash (and cash in transit) of £267k, with the end
of the financial year typically representing a cash low point for the business
given the seasonality in cash flows arising from the timing of invoicing and
collection of the Group's recurring revenue, the majority of which is billed
during Q1 and Q2.

Simon Crowther, Chief Executive of i-nexus Global plc, commented:

"While it is always unfortunate to part ways with a valued customer,
especially one with whom we have enjoyed a strong working relationship, this
was our last remaining client using the older, highly customised version of
the i-nexus software, and supporting their unique requirements was resource
and cost intensive.

We are pleased to have secured a steady number of new logos whilst delivering
on our land and expand strategy with record customer growth. The Board has
every confidence our customer strategy is working, with a further £5k of MRR
delivered since the year-end.

The focus for the year ahead continues to be expansion within our existing
accounts, several of which have considerable growth potential, as well as the
improved conversion of new customers.

While the loss of any customer is a financial setback, market demand for
digital strategy solutions and growth opportunities within our customer base
remains encouraging and the Board are optimistic about the opportunities and
growth potential of the coming year."

For further information please contact:

 i-nexus Global plc                                     Via: Alma

 Simon Crowther, CEO

 Drew Whibley, CFO
 Singer Capital Markets (Nominated Adviser and Broker)  Tel: +44 (0)207 496 3000

 Sandy Fraser / Alex Bond

 (Corporate Finance)
 Alma                                                   Tel: +44 (0)203 405 0205

 Caroline Forde / Robyn Fisher

 

About i-nexus Global plc

i-nexus Global plc ("i-nexus") helps companies accelerate business outcomes
through robust strategic planning, predictable project portfolio delivery, and
real-time performance tracking to ensure results are achieved. i-nexus'
strategy applications replace spreadsheets and presentations with a single
application that promotes collaboration, alignment, and communication in the
pursuit of improved business outcomes, while providing resource and
accompanying cost efficiencies.

Today, we support organisations in managing over 200,000 strategic programmes
around the world.

 

 

 

 

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