REG - i-nexus Global PLC - Interim Results
30/05/2022 07:15
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RNS Number : 1575N i-nexus Global PLC 30 May 2022
30 May 2022
i-nexus Global plc
("i-nexus", the "Company" or the "Group")
Interim Results
i-nexus Global plc (AIM: INX), a leading provider of cloud-based Strategy
Execution software solutions designed for the Global 5000, today provides its
unaudited results for the 6 months ended 31 March 2022.
Financial Highlights
· New Monthly Recurring Revenue (MRR) improved at £23k (H1 2021: £8k)
· Net Retention** of existing accounts for FY 2022 improved at 94% (FY
2021: 73%)
· Group Revenue £1.54m (H1 2021: £2.01m)
o Recurring revenue £1.42m (H1 2021: £1.81m)
o Services revenue £0.12m (H1 2021: £0.20m)
o This reduction in Recurring revenue reflects the exceptional level of
churn experienced in FY21
· Gross margin relatively stable at 77% (H1 2021: 81%)
· Adjusted EBITDA loss* of £0.14m (H1 2021: £0.12m)
· Loss before tax £0.34m (H1 2021: £0.43m)
· Cash balance at 31 March 2022 improved at £0.69m (Cash and cash
equivalents at 30 September 2021: £0.58m)
* Earnings before depreciation, amortisation, impairment, profit/loss on
disposal of assets, share based payments and non-underlying items
** Net Retention is the % that closing MRR of existing accounts represents of
the opening MRR of existing accounts
Operational Highlights and Outlook
· The two key leading indicators above show an upward trend and have
been at the center of our focus over the last 9 months following the worst
impact of the pandemic
· Sales momentum continued through the period, securing 5 contract wins
and 2 upsells within existing accounts, with a combined FY22 MRR of £23k, a
10% gross increase on our opening position of £235k
· The number of renewing customers increased significantly,
contributing to a Net Retention rate of 94%, a considerable improvement on the
prior year
· Average deal size is increasing and we now have clear predictable
conversion rates of leads into deals
· On track to deliver double digit net MRR growth in FY22
· Continued investment in our solution including new features designed
to enhance the user experience
Simon Crowther, Chief Executive, of i-nexus Global plc, commented: "We are
delighted to report that the increase in win rate experienced in Q4 has
continued into the current year, reflecting the transformation we have
effected within our sales and marketing approaches, combined with the
increased industry recognition of the quality of our enterprise grade
offering.
"The changes brought by the pandemic have highlighted the need for scalable,
robust, digital strategy execution tools and the market for our software is
growing. We will continue to invest in the capabilities of our offering,
broadening the scope of our solutions while ensuring we consistently deliver
high levels of customer satisfaction. The growth in our customer base and the
steady increase in recurring revenues, means we look to the future with
confidence."
For further information please contact:
i-nexus Global plc Via: Alma PR
Simon Crowther, CEO
Alyson Levett, CFO
Singer Capital Markets (Nominated Adviser and Broker) Tel: +44 (0)207 496 3000
Sandy Fraser / Alaina Wong (Corporate Finance)
Tom Salvesen (Corporate Broking)
Alma PR Tel: +44 (0)203 405 0205
Caroline Forde
About i-nexus Global plc
i-nexus Global plc ("i-nexus") helps organisations achieve their goals.
Whether executing a strategy, driving operational excellence and continuous
performance improvement, or coordinating portfolios and programs to transform
results, i-nexus strategy execution software underpins success.
Today, we support organisations in managing over 200,000 strategic programmes
around the world.
i-nexus transforms how organisations plan, execute, and track goals. We
inspire the confidence to leave behind the spreadsheets, presentations and
reports those organisations rely on, replacing it with a cloud-based,
collaborative solution.
BUSINESS REVIEW
Overview
We are pleased to report on a period of encouraging trading, building on the
investments made in our product offering and our sales and marketing
approaches in the year to 30 September 2021. The sales successes in the
period, the significant reduction in non-renewing existing accounts and the
well verified opportunities in our sales pipeline, leaves us optimistic that
we are on track to achieve double digit net MRR growth in the year.
Our aim over the last 12 months has been to re-build sales momentum in the
business, and we believe results up to the date of this report provide
evidence of our success in this regard. We are delivering a consistent volume
of well verified sales leads each month. We have invested in our product, in
response to customer feedback, in areas such as ease of use. This has been
particularly useful in the sales process, allowing multiple trial
implementations within the process, resulting in a much deeper engagement from
prospects. While sales conversion and contracting in particular is still
lengthy, both continue to progress.
Trading
We secured 5 new customers in the period (H1 FY21: 1) which along with the
existing account upsells delivered a combined £23k MRR as noted above and a
further 4 new customers are contracted at the time of the issue of this
report, delivering a further combined value of £17k MRR. Each of these wins
services limited business areas or teams within the customer and so each
presents considerable expansion opportunities. On that theme, we expanded the
use of our software within 3 existing accounts (H1 FY21: 1) including within
one new account within the first few months of use of the platform. We
continue to have several live trial implementations at multiple enterprises
across the US, UK and Europe and an ongoing paid Pilot with a major technology
company.
Fundamental to these successes has been our increased understanding of where
we sit within the competitive market landscape. We are now clearer on our
differentiators and confident our platform is the best in class to support
enterprise level strategy execution - a view confirmed to us by our prospects.
We continue to be careful with our investment in the business and are
conscious of the increased need to be prudent in the face of rising costs.
Many of our contracts allow for an annual fee increase after the initial term
and we will seek to strengthen such options as we progress this year.
Market opportunity
All businesses set goals, plan how to deliver them and track performance. The
challenge is if they can do this at pace, with insight and high levels of
visibility across their complex operating environment. In most cases the
answer to this is no and this is where i-nexus' software delivers considerable
value.
Our software category - Strategy Execution Management (SEM) - continues to
evolve and gain momentum as companies accelerate digitising mission-critical
processes in this post pandemic world. Faced with market uncertainty, this
"new normal" future requires companies to increase responsiveness by
dynamically managing their strategic plan; something that we believe simply
cannot be achieved in spreadsheets and other conventional productivity tools.
The growing importance of the SEM market has been acknowledged by leading
analysts including Gartner Research, with SEM now considered an integral part
of the new Strategy Portfolio Management (SPM) software category.
We are seeing an increased sophistication in our market, with prospects
frequently now coming to us with very well thought through capability
requirements, having pre-evaluated i-nexus against the competition on a matrix
of criteria. We continue to see that i-nexus has two clear advantages in
strategy execution against SPM vendors: powerful strategic planning and
performance management capabilities that complement portfolio management
features. Plus, i-nexus' customers benefit from insight gained from over
fifteen years of market experience in strategy execution.
People
We have a talented, committed team at i-nexus, all pulling in the same
direction and now delivering results. The Board would like to once again thank
them all for their commitment.
We announced in May that our longstanding CFO, Alyson Levett will be stepping
down from the Board in August to pursue a portfolio career. In the near term,
Ms. Levett will remain available to i-nexus in an advisory role to ensure an
orderly hand over. The Board are incredibly grateful for the tireless work and
huge personal commitment that Alyson has put into ensuring the financial
stability of i-nexus. She leaves the business on a sound financial footing,
and we wish her all the very best in her future endeavours. We are delighted
to have found an exceptional CFO to take up the role, Drew Whibley, joining us
from his role as Group Finance Manager at LSE listed software business
Aptitude Software Group plc. We look forward to working with him, as we look
to continue the positive progress we have been making in recent months.
Strategic Focus for H2
Our strategy is focused on four main programmes of work:
· winning more logos;
· keeping our customers through increased end user satisfaction and
helping our sponsors demonstrate value to their executives;
· hiring the right people as we grow;
· a focus on how to continue to evolve the capabilities of our
platform, a market product study has begun to explore this.
We believe through continued focus on these areas, we will drive the success
of the business.
Current Trading and Outlook
Following the sales successes in the period and those at the start of H2, the
Company's committed Monthly Recurring Revenue rate will increase to £245k and
we remain on track to deliver our target of double digit MRR growth in the
year. We are managing the impacts of cost inflation on the business and have
clear visibility of our cash runway.
The changes brought by the pandemic have highlighted the need for scalable,
robust, digital strategy execution tools and the market for our software is
growing. We will continue to invest in the capabilities of our offering,
broadening the scope of our solutions while ensuring we consistently deliver
high levels of customer satisfaction. The growth in our customer base and
growth in MRR, means we look to the future with confidence.
FINANCIAL REVIEW
Reported revenue
As identified above there are 2 positive forward looking metrics that leave
the Board optimistic about the Company's future potential:
· New MRR from deals closed in the period
· Net Retention rate
Adverse exchange rate movements and other non-trade related adjustments have
led to a reduction in MRR of some £8k (H1 21: £2k). However more recent
events and trading performance mean the impact of these in H2 22 is expected
to be less adverse.
Double-digit net MRR growth is expected in FY22 which compares very favourably
to FY21 where the equivalent value was a net reduction in MRR of approximately
23%.
Total recognised revenue for FY22 is however expected to be below FY21 as this
net reduction in MRR in FY21 has an adverse impact on this Financial Year's
recognisable revenue.
Total recognised revenue decreased to £1.54m (H1 21: £2.01m) which reflects
the exceptional level of churn experienced in FY21. As a result, revenue from
recurring contracted software subscriptions reduced by 22% to £1.42m (H1 21:
£1.81m). Revenue from professional services reduced by 40% to £0.12m (H1 21:
£0.20m).
The Group signed five new customers (H1 21: one) under a recurring contract
paid annually in advance during the period and a further four in early H2
which were delayed in contracting from H1. Due to our subscription revenue
model, the majority of revenue from these contracts will be recognised in
future periods. The timing of the new customer orders and existing client
change orders resulted in lower levels of WIP for the service team to deliver
in the period, however an increase in both towards the end of the H1 will
contribute to better revenue results in H2.
Gross margin
Gross margin in the period remained relatively stable at 77% (H1 21: 81%).
Reported gross margin is the blended gross margin over both recurring software
subscriptions and professional services.
Overheads
Overheads (defined as the aggregate of staff costs and other operating
expenses but excluding those costs included in cost of sales) reduced in the
period by £0.59m to £1.42m (H1 21: £2.01m) reflecting the full impact of
the cost control initiatives undertaken last year. As we see our new business
and change orders increasing, we have started a select number of investments
in additional resource needed for operational delivery.
The Group's underlying cost base averaged approximately £0.27m per month for
H1. This level should have delivered net break-even EBITDA, but the timing of
new deals and the low services WIP led to lower recognised revenue than
Budgeted and meant we made a modest adjusted EBITDA loss of £0.14m (H1 21:
£0.12m).
Capitalised development costs amounted to £0.08m in the period (H1 21:
£0.20m). We expect to see an increase in this in H2 as we look to add more
new features.
The Group's Operating loss has reduced as a result of last year's cost control
exercise to £0.23m (H1 21: £0.36m).
Cash flow
Cash and cash equivalents closed at £0.69m (H1 21: £0.81m). This result
reflects a strong renewal performance, good cost control and a good new deal
and change order billing performance especially towards the end of H1 and is
in line with management expectations.
Borrowings at 31 March 2022 were £0.05m (31 March 2021: £0.24m) reflecting
the full repayment of the Boost debt. The remaining balance is an HSBC BBLS
loan of which £0.01m is payable within one year.
Convertible debt liability stood at £1.84m at 31 March 2022 (31 March 2021:
£1.35m) excluding accrued interest of £0.14m (31 March 2021: £0.06m).
The Group will continue to apply treasury and foreign currency exposure
management policies to minimise both the cost of finance and our exposure to
foreign currency exchange rate fluctuations.
i-nexus Global plc
Group Statement of Comprehensive Income
Unaudited Six months ended 31 March 2022 Unaudited Six months ended 31 March 2021 Audited Year ended 30 September 2021
£ £ £
Revenue 1,540,267 2,013,472 3,639,111
Cost of Sales (351,892) (383,829) (635,532)
Gross Profit 1,188,375 1,629,643 3,003,579
Other operating income - 25,426 88,316
Administrative Expenses (1,418,905) (2,012,829) (4,062,295)
Operating Loss (230,530) (357,760) (970,400)
Investment revenues 11 5 65
Financing Costs (112,575) (69,001) (162,855)
Loss before tax (343,094) (426,756) (1,133,190)
Tax 60,391 197,815 398,258
Loss for the period/year (282,703) (228,941) (734,932)
Other comprehensive income:
Items that will not be reclassified to profit or loss
Exchange differences arising on translation of foreign operations 38,884 86,309 17,346
Total other comprehensive income for the period/year 38,884 86,309 17,346
Total Comprehensive income for the period/year (243,819) (142,632) (717,586)
£ £ £
Basic and diluted earnings per share (0.010) (0.008) (0.025)
Adjusted EBITDA (137,552) (118,255) (256,873)
Depreciation, amortisation, impairment and profit/loss on disposal (88,666) (154,166) (551,862)
Share based payment expenses (4,312) - (17,181)
Non-underlying items (85,339) (144,484)
Operating Loss (230,530) (357,760) (970,400)
Group Statement of Financial Position
Unaudited Unaudited Audited
As at 31 March As at 31 March As at 30 September
2022 2021 2021
£ £ £
Assets
Non-current assets
Intangible assets 1,120,015 1,321,613 1,099,313
Property plant and equipment 40,919 108,647 67,111
Total non-current assets 1,160,934 1,430,260 1,166,424
Current assets
Trade and other receivables 1,245,602 1,107,449 791,948
Current tax recoverable 50,000 75,000 275,000
Cash and cash equivalents 694,202 811,768 575,203
Total current assets 1,989,804 1,994,217 1,642,151
Total assets 3,150,738 3,424,477 2,808,575
Current liabilities
Borrowings 9,586 156,513 71,425
Trade and other payables 866,349 628,558 952,157
Deferred income 1,655,075 1,998,387 1,030,315
Total current liabilities 2,531,010 2,783,458 2,053,897
Non-current liabilities
Trade and other payables 140,310 - 88,330
Borrowings 37,271 80,208 42,094
Convertible loan notes 1,839,858 1,350,000 1,782,458
Provisions - 30,000 -
Total non-current liabilities 2,017,439 1,460,208 1,912,882
Total liabilities 4,548,449 4,243,666 3,966,779
Net liabilities (1,397,711) (819,189) (1,158,204)
Equity
Called up share capital 2,957,161 2,957,161 2,957,161
Share premium account 7,256,188 7,256,188 7,256,188
Equity reserve 231,851 - 231,851
Share option reserve 17,301 13,093 12,989
Foreign exchange reserve 40,760 70,839 1,876
Merger reserve 10,653,881 10,653,881 10,653,881
Retained earnings (22,554,853) (21,770,351) (22,272,150)
Total Equity (1,397,711) (819,189) (1,158,204)
Group Statement of Cash Flows
Unaudited Unaudited Audited
As at 31 March As at 31 March As at 30 September
2022 2021 2021
£ £ £
Cash flows from operating activities
Loss after taxation (282,703) (228,941) (734,932)
Taxation credit (60,391) (197,815) (398,258)
Loss before taxation (343,094) (426,756) (1,133,190)
Adjustments for non-cash/non-operating items
Amortisation, depreciation, impairment of intangible and profit on 88,666 154,166 551,862
disposal
Share based payment 4,312 13,093 17,181
Finance income (11) (5) (65)
Finance charges 112,575 69,001 162,855
(137,552) (190,501) (401,357)
Changes in working capital:
(Increase)/Decrease in trade and other receivables (274,942) 78,059
(453,654)
(Decrease) in provisions - (50,702) (80,702)
Increase/(Decrease) in trade and other payables 538,951 (336,324) (980,799)
Taxation 285,392 422,815 423,258
Net cash from operating activities 233,137 (429,654) (961,541)
Cash flows from/(used in) investing activities
Purchase of property, plant and equipment (3,177) (330) (1,171)
Purchase of development costs (80,000) (201,325) (335,446)
Proceeds on disposal of property, plant and equipment 1,180
Interest received 11 5 65
Net cashflow from/used in investing activities (83,166) (201,650) (335,372)
Cash flows from/(used in) financing activities
Principle elements of lease costs - (37,467) (37,467)
Funds raised
Issue of convertible loans - 1,375,000 1,937,500
Proceeds from borrowings 50,000
Repayment of borrowings (66,662) (86,988) (179,981)
Interest paid (3,194) (13,793) (35,216)
Net cash flow from/used in financing activities (69,856) 1,236,752 1,734,836
Net increase in cash and cash equivalents 80,115 605,448 437,923
Cash and cash equivalents beginning of the period 575,203 120,011 120,011
Effect of foreign exchange rate changes 38,884 86,309 17,269
Cash and cash equivalents at the end of the period 694,202 811,768 575,203
Group Statement of Changes in Equity
Share Foreign
Share Share Equity option exchange Merger Accumulated Total
Capital Premium Reserve Reserve reserve reserve losses Equity
£ £ £ £ £ £ £ £
As at 1 October 2020 2,957,161 7,256,188 - - (15,470) 10,653,881 (21,541,410) (689,650)
Loss for period - - - - - - (228,941) (228,941)
HY FY2021 Exchange differences on foreign operations - - - - 86,309 - - 86,309
Share option expense in the period - - - 13,093 - - - 13,093
As at 30 March 2021 2,957,161 7,256,188 - 13,093 70,839 10,653,881 (21,770,351) (819,189)
As at 1 October 2020 2,957,161 7,256,188 - - (15,470) 10,653,881 (21,541,410) (689,650)
Loss for period - - - - - - (734,932) (734,932)
Other Comprehensive income:
Exchange differences on foreign operations - - - - 17,346 - - 17,346
FY2021
Total comprehensive income for the year - - - - 17,346 - (734,932) (717,586)
Share option expense in the year - - - 17,181 - - - 17,181
Share options cancelled - - - (4,192) - - 4,192 -
Issue of convertible loan - - 231,851 - - - - 231,851
Balance at 30 September 2021 2,957,161 7,256,188 231,851 12,989 1,876 10,653,881 (22,272,150) (1,158,204)
As at 1 October 2021 2,957,161 7,256,188 231,851 12,989 1,876 10,653,881 (22,272,150) (1,158,204)
Loss for the period - - - - - - (282,703) (282,703)
Other comprehensive income:
HY FY2022 Exchange differences on foreign operations - - - - 38,884 - - 38,884
Total comprehensive income for the year 2,957,161 7,256,188 231,851 12,989 40,760 10,653,881 (282,703) (243,819)
Share options expense in the period - - - 4,312 - - - 4,312
Balance at 31 March 2022 2,957,161 7,256,188 231,851 17,301 40,760 10,653,881 (22,554,853) (1,397,711)
Notes to the consolidated interim report
For the six months ended 31 March 2022
1. General information
i-nexus Global plc (the "Company") is a public limited company domiciled in
the UK and incorporated in England and Wales (registered number 11321642) and
its registered office is 27-28 Eastcastle Street, London, W1W 8DH.
The principal activity of i-nexus Global plc ("the Company") and its
subsidiary companies, i-solutions Global Limited and i-nexus (America) Inc.
(together "i-nexus Global" or "the Group") is the development and sale of
Enterprise Cloud based software and associated professional Consultancy
services.
The interim condensed consolidated financial statements were approved for
issue on 27 May 2022.
2. Basis of preparation
This unaudited interim condensed consolidated financial information has been
prepared under the historical cost convention and in accordance with AIM Rules
for Companies. The interim condensed consolidated financial information has
been prepared on a going concern basis and is presented in Sterling to the
nearest £1.
The Directors have at the time of approving the Interim financial statements,
a reasonable expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future. Thus, the Directors continue
to adopt the going concern basis of accounting in preparing the financial
statements.
Forecasts are adjusted for reasonable sensitivities that address the principal
risks and uncertainties to which the Group is exposed, thus creating a number
of different scenarios for the Board to challenge. On the basis of this
analysis, the Board has concluded that there is a reasonable expectation that
the Group will have adequate resources to continue in operational existence
for the foreseeable future being a period of at least twelve months from the
date of approval of this report.
The accounting policies used in the preparation of the interim condensed
consolidated financial information are consistent with those set out in the
2021 Annual Report and Accounts. The Group will continue to review its
accounting policies in the light of emerging standards and industry consensus
on the practical application of IFRS.
The preparation of financial information in conformity with IFRS requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities at the date of the financial information and the
reported amounts of revenues and expenses during the reporting period.
Although these estimates are based on management's best knowledge of the
events or actions involved, actual outturns ultimately may differ from those
estimates. The interim information does not include all financial risk
management information and disclosures required in annual financial
statements; the information should be read in conjunction with the financial
information, as at 30 September 2021, summarised in the 2021 Annual Report and
Accounts. Section 6 below summarises the most relevant of these.
The interim condensed consolidated financial information for the six months
ended 31 March 2022 and for the six months ended 31 March 2021 do not
constitute statutory accounts as defined in Section 434 of the Companies Act
2006 and are unaudited. The financial information for the six months ended 31
March 2022 presents financial information for the consolidated group,
including the financial results of the Company's wholly owned subsidiaries,
i-solutions Global Limited and i-nexus (America) Inc. Comparative figures in
the Interim Report for the year ended 30 September 2021 have been taken from
the Group's audited financial statements on which the Group's auditors,
Saffery Champness LLP, expressed an unmodified opinion.
3. Segmental reporting
The Directors consider that there is one identifiable business segment that is
engaged in providing individual products or services or a group of related
products and services that comprise the core business.
All of the Group's assets and operations are located in the UK and USA.
4. Earnings per share
The calculation of basic and diluted loss per share for the six months to 31
March 2022 was based upon the loss attributable to ordinary shareholders of
£282,703 (six months to 31 March 2021: £228,941, year ended 30 September
2021: £734,932) and a weighted average number of ordinary shares in issue of
29,571,605 (six months to 31 March 2021: 29,571,605, year ended 30 September
2021: 29,571,605), calculated as follows:
Weighted average number of ordinary shares
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2022 2021 2021
Loss for the period attributable to equity holders of the Company (282,703) (228,941) (734,932)
Issued ordinary shares at start of period/year 29,571,605 29,571,605 29,571,605
29,571,605 29,571,605 29,571,605
Weighted average number of shares at end of period/year
Earnings per share
0.010
0.008
0.025
5. Availability of Interim Report
Electronic copies of this Interim Report will be available on the Group's
website at www.i-nexus.com.
6. Principal risks and uncertainties
Although the directors seek to minimise the impact of risk factors, the Group
is subject to a number of such factors. Those most relevant to the Group's
performance in H2 are as follows:
Working capital
Whilst the Directors believe that the injection of funds from the convertible
bond issues last year has provided flexibility to satisfy the Group's
near-term funding requirements, there can be no guarantee as to the Group's
longer term working capital requirements and, therefore, the Group may need to
seek additional capital over and above that raised from the issue of the
Convertible Loan Notes. No assurance can be given as to the availability of
such additional capital at any future time or, the terms upon which such
additional capital would be available.
The Group's continuing viability in the longer term remains dependent on its
ability to secure new sales to existing and potential customers. The Group
prepares regular business forecasts and monitors its projected cash flows,
which are reviewed by the Board. The scenarios and sensitivities demonstrate
that there are actions management can implement should the plans not deliver
the growth hoped for.
Customer churn
The Group has experienced falling revenues in relation to certain customers in
the past and in H1, albeit to a lesser extent. The reasons for this are varied
and the Group's historical ability to invest in its customers was limited.
While the investment in customer retention activities is seeing benefits,
customer churn is still a risk for the Group and could affect the Group's
trading and financial position and prospects.
Implementation of Growth Strategy
Failure to successfully implement its growth strategies. The Board recognises
that executing the Group's strategy may be difficult to implement/achieve and
may not be as successful as planned. Pressure on management, limitations on
operational and financial resources, the potential insufficiency of demand
for the Group's products and a slower than anticipated market acceptance of
the Group's products could lead to failure to successfully implement its
strategies and so adversely affect the Group's reputation, prospects, results
of operations, and its financial condition.
Digitalising Strategy Execution
Failure of the market to accept the need/urgency to digitalise their Strategy
Execution (SE). A large proportion of the Group's target market continues to
use traditional methods and in-house developed systems to assist in their SE.
The Board believes the market needs further education in the benefits of
digitalising SE. Potential customers may prefer to "do nothing" and be
unnecessarily cautious about investing in the Group's software. Failure by the
Group to adequately explain the value proposition to increase the market's
readiness to accept the technology will lead to slower than projected growth.
The Groups marketing function supported by a network of consulting partners
work with potential customers to educate them on the benefits the product can
offer. Furthermore the impact of COVID-19 is making the need to digitise
strategy more widely accepted.
Account Proliferation
Failure of our existing accounts to grow, resulting from dissatisfaction with
the product and/or deployment issues. An important aspect of the Group's
growth strategy is to proliferate sales of its i-nexus software with existing
customers as a result of the natural evolution of the software use over time.
Although the Group has a number of examples where this has occurred in the
past, this is no guarantee that it will continue to happen at the increasing
rate predicted. Any failure of this anticipated account proliferation to
happen will affect the Group's future success and adversely affect its
business, prospects and results of operations and financial position. The
Group's investment in its Success team and the work undertaken by its
development team to implement feedback received from clients are designed to
mitigate this risk wherever possible.
7. Forward-looking statements
This announcement may include certain forward-looking statements, beliefs or
opinions, including statements with respect to the Group's business, financial
condition and results of operations. These forward-looking statements can be
identified by the use of forward-looking terminology, including the terms
"believes", "estimates", "plans", "anticipates", "targets", "aims",
"continues", "expects", "intends", "hopes", "may", "will", "would", "could" or
"should" or, in each case, their negative or other various or comparable
terminology. These statements are made by the Directors in good faith based
on the information available to them at the date of this announcement and
reflect the Directors beliefs and expectations. By their nature these
statements involve risk and uncertainty because they relate to events and
depend on circumstances that may or may not occur in the future. A number of
factors could cause actual results and developments to differ materially from
those expressed or implied by the forward-looking statements, including,
without limitation, developments in the global economy, changes in government
policies, spending and procurement methodologies, and failure in health,
safety or environmental policies. No representation or warranty is made that
any of these statements or forecasts will come to pass or that any forecast
results will be achieved. Forward-looking statements speak only as at the date
of this announcement and the Group and its advisers expressly disclaim any
obligations or undertaking to release any update of, or revisions to, any
forward-looking statements in this announcement. No statement in the
announcement is intended to be, or intended to be construed as, a profit
forecast or to be interpreted to mean that earnings per share for the current
or future financial years will necessarily match or exceed the historical
earnings. As a result, you are cautioned not to place any undue reliance on
such forward-looking statements.
8. Statement of Directors' Responsibilities
The Directors confirm to the best of their knowledge that:
i) The condensed interim financial information has been
prepared in accordance with IAS 34 as adopted by the European Union; and
ii) The interim management report includes a fair review of
the information required by the FCA's Disclosure and Transparency Rules (4.2.7
R and 4.2.8 R).
Financial statements are published on the Group's website in accordance with
legislation in the United Kingdom governing the preparation and dissemination
of financial statements, which may vary from legislation in other
jurisdictions. The maintenance and integrity of the Group's website is the
responsibility of the Directors. The Directors' responsibility also extends
to the ongoing integrity of the financial statements contained therein.
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