REG - i-nexus Global PLC - Interim Results
28/04/2023 07:00
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RNS Number : 7863X i-nexus Global PLC 28 April 2023
28 April 2023
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
software solutions designed for the Global 5000, today provides its unaudited
results for the 6 months ended 31 March 2023.
Financial Highlights
· Monthly Recurring Revenue ('MRR') increased 25% year-on-year to
£281k and 12% since the start of the period (30 September 2022: £250k, 31
March 2022: £225k) driven by a further five new business wins and the
expansion of several existing customer relationships; equivalent Underlying
MRR(1) was £275k (30 September 2022: £250k, 31 March 2022: £230k)
· Total revenue, 93% of which is recurring, increased by 9% to £1,673k
(H1 2022: £1,540k) through the new business and expansion successes since the
start of FY22
· Net retention(2) in the period improved to 103% (H1 2022: 95%),
highlighting both the increasing strength of our client relationships and
quality of our product
· A select number of strategic investments during the second half of
2022, considered fundamental to the Group realising the market opportunity,
has led to Adjusted EBITDA(3) loss increasing to £358k (H1 2022: £138k)
· Loss after tax for the period of £491k (H1 2022: £283k) as a result
of the aforementioned strategic investments
· Cash and cash equivalents at the period end improved to £147k (30
September 2022: £99k), with the Group continuing with its plan of deferring
the placement of additional investment beyond 2022 levels until such time that
revenue growth delivers a position of at least Adjusted EBITDA breakeven
· Trade receivables (net) have increased to £1,127k due to the timing
of receipt of annual licence fee invoices issued (31 March 2022: £702k)
· The growth in the Group's MRR resulted in deferred revenue increasing
to £1,927k at 31 March 2023 (31 March 2022: £1,655k). The Group's cash
collection disciplines remain strong with DSO (debtor days) at 31 March 2023
of 60 (31 March 2022: 70)
Operational Highlights and Outlook
· Three material account expansions, two of which were logos signed in
2022, highlighting the speed of value being derived from the product alongside
the increased market need for digitalised strategy solutions
· The delivery of fourteen new logos in the last 18 months has
highlighted clear, common areas where we can continue to make improvements and
where we are focusing our development activities. These improvements will
benefit all existing customers, whilst supporting increased conversion in new
business
· On track to deliver improved double-digit net MRR growth in FY23,
capitalising on the increased opportunities within our base and strong
prospect pipeline
Simon Crowther, Chief Executive, of i-nexus Global plc, commented:
"The market for i-nexus software continues to expand, with an increasingly
remote or hybrid workforce across multiple industries driving the need for
scalable, robust, digital strategy execution tools. We continue to steadily
add to our customer base and have considerably improved the retention and
expansion rates of our customers.
The Board is confident i-nexus is well positioned, with a differentiated
offering, to play a leadership role in this maturing market and the management
team are focused on delivering a year of growth, alongside the continued
management of our cash resources."
For further information please contact:
i-nexus Global plc Via: Alma PR
Simon Crowther, CEO
Drew Whibley, CFO
Singer Capital Markets (Nominated Adviser and Broker) Tel: +44 (0)207 496 3000
Sandy Fraser / Alex Bond / Jake Humphrey
(Corporate Finance)
Alma PR Tel: +44 (0)203 405 0205
Caroline Forde / Robyn Fisher
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 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.
Throughout this announcement:
(1) Underlying MRR excludes MRR movements related to IFRS adjustments and
Foreign Exchange variances, these items are included within the Reported MRR
value.
(2) Net Retention is measured by the total of on-going MRR at the period-end
from clients in place at the start of the period as a percentage of the
opening MRR from those clients.
(3) Adjusted EBITDA excludes the impact of any impairment, loss on disposal
of assets, share based payment expenses and non-underlying items
Overview
i-nexus is pleased to report on a period of encouraging progress for the
business, with the continued delivery of new business wins being well
supported by the expansion opportunities secured within our client base.
These sales successes, combined with the continued improvement in net revenue
retention levels, resulted in the Group delivering double-digit MRR growth in
the period whilst continuing to operate a strong sales pipeline, with multiple
businesses in active dialogue or trials.
This success is underpinned by the decision at the start of 2022 to revise our
Go-to-Market strategy, shifting our marketing focus to a content-led strategy
and deliberately securing smaller initial deals, servicing limited business
areas or teams within the customer where demonstration of value would lead to
significant expansion opportunities.
In order to ensure the business is best placed to realise the growing market
opportunity, during the first half of the year the Group launched several
strategic initiatives which focused on streamlining the onboarding process,
ensuring we continue to drive our value proposition and best practice into our
sales discussions and simplification of our product demonstrations,
particularly around our key differentiator: our ability to deliver Hoshin
Kanri methodology.
Our marketing engine is performing well, with the strength of the pipeline
corresponding well to the level of investment. During the second quarter, the
business took the strategic decision to reduce marketing expenditure, choosing
instead to increase investment in other areas of the team, to ensure we have
the ability to continue to deliver for our growing customer base.
Positive progress with partners has been achieved in the period, with the
Group securing approximately three new consulting partner leads per month. The
business has now started to focus on re-engaging in its partner program,
believing they have considerable potential to increase our sales pipeline. The
Board is actively considering ways to capitalise on this interest.
Trading
Since the start of the current financial year, the Company has secured five
new logos (H1 2022: 5), each with expansion potential, building on the record
nine new logos signed in the prior year. These successes include a large tier
1 automotive manufacturer, secured via our UK reseller, who successfully
demonstrated the value of a rigorous and systematic approach to strategy.
A key highlight for the business during the first half of the year is that a
number of these logos are already showing the potential for either stepped
growth or are considering business wide rollouts, in addition to the three
material expansions being secured in H1. This is a testament to the value the
deployment team are demonstrating.
The Group renewed well over 90% of its customers, a considerable improvement
on the prior year period, reflecting the rigour and routine that has been
brought to the review of accounts with our customer stakeholders, and the
release of enterprise software budgets following the freeze experienced during
Covid times.
These new logo wins and account expansions, alongside the continued
improvement in net revenue retention levels, delivered year-on-year growth in
MRR of 25% to £281k MRR and 12% since the start of the period (30 September
2022: £250k, 31 March 2022: £225k).
Market Opportunity
All businesses set goals, plan how to deliver them and track performance. The
challenge is whether they can do this at pace, with insight and high levels of
visibility across their complex ecosystems where i-nexus' software delivers
considerable value. Our software category - Strategy Execution Management
('SEM') - continues to evolve and gain momentum as companies accelerate
digitalising mission-critical processes in this post-pandemic world. The Group
is beginning to see increased demand from customers looking to digitalise
strategy execution. Post-Covid traditional analogue methods have proven
ineffective for remote working. These customers acknowledge market disruption
and seek tools that enable responsiveness to changing conditions.
The business is seeing two clear customer priorities around improving the
strategic planning process (and in particular, the adoption of Hoshin Kanri)
and connecting the planning process with the delivery engine: a traditional
project management office or a new strategy realisation office driving
organisation alignment.
Accompanying this is an increased level of 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 Strategy Portfolio Management ('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
The Board wishes to thank its employees for the excellent support and
commitment they are providing to the business and to our clients, highlighted
by the successes achieved. The results are even more impressive when taking
into account the size of the team. Each person has gone above and beyond to
grow sales momentum, develop our products and deepen customer relationships.
Strategic focus for H2
1. To accelerate the landing of new logos - The business has managed to
reduce friction in buying i-nexus through a more streamlined contracting
process whilst enhancing the trial experience as planned. The Group is seeing
increased evidence of trials advancing to where we feel confident in marketing
them more widely and we are also witnessing early signs of shorter buying
cycles.
2. Prove our ability to expand within accounts - A key highlight during the
first half of the year was the delivery of three material expansions, two of
which were logos secured in 2022. With a further five new logos signed in the
period, proving the land and expand strategy is repeatable across both these
and the other clients secured in 2022 is a key focus for the Group. In order
to fully realise this opportunity, the business launched an updated set of
value measures and increased its levels of customer interaction through
marketing initiatives and forums.
3. Improve the customer experience within our Workbench product - The Group
continues to focus on the challenges customers face in the process of strategy
execution rather than outputs for insight. The delivery of the fourteen new
logos secured in the last 18 months has highlighted clear, common areas where
we can continue to make improvements and where we are focusing our development
activities. These improvements will benefit all existing customers, whilst
supporting increased conversion in new business. A process of defining best
practice Strategy process and mapping it to the product is also underway.
We believe that through continued focus on these programs, we will drive the
success of the business.
Outlook
Following the growth in MRR achieved in H1 and our careful management of the
impacts of cost inflation on the business, we continue to have clear
visibility of our cash runway. The growing interest in strategy software, the
relaxation of enterprise software budgets, the enhancements we have made to
our products and our increased sales and marketing skills, all combine to
provide us with confidence in our outlook.
The market for i-nexus software continues to expand, with an increasingly
remote or hybrid workforce across multiple industries driving the need for
scalable, robust, digital strategy execution tools. We continue to add
steadily to our customer base and have considerably improved the retention and
expansion rate of our customers.
The Board is confident i-nexus is well positioned, with a differentiated
offering, to play a leadership role in this maturing market and the management
team are focused on delivering a year of growth. Alongside the continued
management of our cash resources, the Board continues to consider the
available options at its disposal in order to strengthen the Group's cash
position.
Financial Performance
Revenue
Licence revenues
i-nexus' Monthly Recurring Revenue ('MRR') at 31 March 2023 totalled £281k
(30 September 2022: £250k, 31 March 2022: £225k) representing overall
year-on-year growth of 25% and growth of 12% since the start of the period as
the business secured five new logos (H1 2022: five), building on the record
nine secured in FY22, alongside material expansions in three accounts (H1
2022: two).
Highlighting both the increasing strength of our client relationships and
quality of our product, net retention (measured by the total value of on-going
MRR at the period-end from clients in place at the start of the period as a
percentage of the opening MRR from those clients) in the period grew to 103%
(H1 2022: 95%).
As predicted, licence revenues recognised in H1 2023 increased by 10% to
£1,555k (H1 2022: £1,416k), with the new business and account expansion
successes since the start of 2022 expected to drive further increases during
the second half of the year. These revenues now represent 93% of overall
revenue (H1 2022: 92%).
Services revenues
Revenue from associated professional services was in line with prior period
levels at £118k (H1 2022: £124k).
Gross Margin
Gross Margin in the period remained stable at 77% (H1 2022: 77%) with the
increase in revenue driving the uplift from £1,188k to £1,293k.
Reported Gross Margin is the combined gross margin over both recurring
software subscriptions and professional services.
Adjusted EBITDA
Adjusted EBITDA (EBITDA excluding the impact of impairment, loss on disposal
of assets, share-based payments and non-underlying items) totalled a loss of
£358k for the period (H2 2022: loss of £414k, H1 2022: loss of £138k), with
the increase in overhead costs of £350k against H1 2022 levels reflecting the
Board's decision during the second half of 2022 to accelerate a select number
of investments both in its existing employee base to preserve retention and in
additional resource needed for operational delivery. The strengthening of
the team was considered fundamental to the Group realising the market
opportunity and delivering on the next stage of its growth strategy, a
strategy which has started to play out during H1.
As mentioned in the FY22 Annual Report, there remains no plans to make further
investments until such time as revenue growth is delivering a positive
Adjusted EBITDA.
Depreciation, amortisation and impairment
Total costs in respect of depreciation, amortisation, and impairment were
£106k (H1 2022: £89k). With the business having low capital expenditure
requirements, the value is principally made up of amortisation on intangible
assets, being capitalised development costs (£99k, H1 2022: £59k).
These costs are reflective of the continual evolution of the market in which
the Group operates, the needs of its customers, both present and prospective,
and the Group's agile approach to continually developing and improving its
offering.
Non-underlying items
Non-underlying items totalling £11k in H1 2023 comprise redundancy costs. No
such costs were incurred in the year ended 30 September 2022.
Statutory results
The Group reported a loss before taxation for the six month period of £596k
(H2 2022: £762k, H1 2022: £343k).
Cash and cash equivalents
Cash and cash equivalents at 31 March 2023 improved to £147k (30 September
2022: £99k, 31 March 2022: £694k).
Careful cash management will continue to be a priority focus for the Board. As
previously outlined, there are currently no plans to increase the existing
cost base in the second half of 2023 until such time as revenue growth
delivers a position of at least Adjusted EBITDA breakeven.
The Group prepares budgets, cashflow forecasts and undertakes scenario
planning to ensure that the Group can meet its liabilities as they fall due.
The Board's assessment in relation to going concern is included in note 2 of
this report.
Balance sheet
Trade receivables (net) have increased to £1,127k at 31 March 2023 due to the
timing of receipt of annual licence fee invoices issued (31 March 2022:
£702k). This amount is expected to be received in line with the Group's DSO.
The growth in the Group's MRR resulted in deferred revenue increasing to
£1,927k at 31 March 2023 (31 March 2022: £1,655k). The Group's cash
collection disciplines remain strong with DSO (debtor days) at 31 March 2023
of 60 (31 March 2022: 70).
Principal risks and uncertainties
The Group's principal risks and uncertainties are set out in note 7 of this
report.
CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 March 2023
Unaudited six months ended 31 March 2023 Unaudited six months ended Audited
31 March 2022 year ended
30 September 2022
£ £ £
Revenue 1,673,443 1,540,267 3,126,804
Cost of sales (380,319) (351,892) (666,280)
Gross profit 1,293,124 1,188,375 2,460,524
Administrative expenses (1,769,235) (1,418,905) (3,408,424)
Operating loss (476,111) (230,530) (947,900)
Investment revenues 13 11 68
Financing costs (119,533) (112,575) (231,288)
Other gains and losses - - 73,845
Loss before tax (595,631) (343,094) (1,105,275)
Income tax income 104,456 60,391 234,391
Loss for the period (491,175) (282,703) (870,884)
Other comprehensive income:
Items that will not be reclassified to profit or loss
Currency translation differences 38,529 38,884 (486)
Total other comprehensive income for the period 38,529 38,884 (486)
Total comprehensive income for the period (452,646) (243,819) (871,370)
£ £ £
Basic and diluted earnings per share (0.02) (0.01) (0.03)
Adjusted EBITDA (358,367) (137,552) (552,357)
Depreciation, amortisation, impairment and profit/loss on disposal (106,163) (88,666) (384,975)
Share based payment expenses (1,081) (4,312) (10,568)
Non-underlying items (10,500) - -
Operating loss (476,111) (230,530) (947,900)
CONDENSED CONSOLIDATED INTERIM BALANCE SHEET
As at 31 March 2023
Unaudited Unaudited Audited
as at as at as at
31 March 31 March 30 September
2023 2022 2022
£ £ £
Assets
Non-current assets
Intangible assets 876,877 1,120,015 915,696
Property, plant and equipment 29,874 40,919 26,413
906,751 1,160,934 942,109
Current assets
Trade and other receivables 1,221,216 1,245,602 781,838
Current tax recoverable 100,000 50,000 224,000
Cash and cash equivalents 147,256 694,202 98,987
1,468,472 1,989,804 1,104,825
Total assets 2,375,223 3,150,738 2,046,934
Current liabilities
Trade and other payables 742,195 866,349 682,840
Borrowings 9,707 9,586 9,707
Deferred income 1,927,483 1,655,075 1,319,674
2,679,385 2,531,010 2,012,221
Net current liabilities (1,210,913) (541,206) (907,396)
Non-current liabilities
Trade and other payables 333,407 140,310 254,407
Borrowings 27,564 37,271 32,387
Convertible loan notes 1,805,438 1,839,858 1,766,925
2,166,409 2,017,439 2,053,719
Total liabilities 4,845,794 4,548,449 4,065,940
Net liabilities (2,470,571) (1,397,711) (2,019,006)
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
Foreign exchange reserve 39,919 40,760 1,390
Share option reserve 21,143 17,301 20,062
Equity reserve 231,851 231,851 231,851
Merger reserve 10,653,881 10,653,881 10,653,881
Retained earnings (23,630,714) (22,554,853) (23,139,539)
Total Equity (2,470,571) (1,397,711) (2,019,006)
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
For the six months ended 31 March 2023
Unaudited Unaudited Audited
as at as at as at
31 March 31 March 30 September
2023 2022 2022
£ £ £
Operating activities
Loss after tax (491,175) (282,703) (870,884)
Adjusted for non-cash items:
Taxation credit (104,456) (60,391) (234,391)
Amortisation, depreciation, and adjustments on disposal 106,163 88,666 384,975
Share-based payment expense 1,081 4,312 10,568
Finance income (13) (11) (68)
Finance charges 119,533 112,575 231,288
Other gains - - (73,845)
(368,867) (137,552) (552,357)
(Increase)/decrease in trade and other receivables 10,126
(439,378) (453,654)
Increase in trade and other payables 671,620 538,951 20,043
Cash used in operations (136,625) (52,255) (522,188)
Income tax refund 224,000 285,392 285,391
Net cash inflow/(outflow) from operating activities 87,375 233,137 (236,797)
Investing activities
Purchase of property, plant and equipment (10,805) (3,177) (24,443)
Purchase of intangible assets - internally generated (60,000) (80,000) (136,234)
Interest received 13 11 68
Net cashflow used in investing activities (70,792) (83,166) (160,609)
Financing activities
Repayment of borrowings (4,823) (66,662) (71,425)
Interest paid (2,020) (3,194) (6,899)
Net cash flow used in financing activities (6,843) (69,856) (78,324)
Net increase/(decrease) in cash and cash equivalents 9,740 80,115 (475,730)
Cash and cash equivalents at beginning of period 98,987 575,203 575,203
Effect of foreign exchange rates 38,529 38,884 (486)
Cash and cash equivalents at end of period 147,256 694,202 98,987
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 March 2023
Share Foreign
Share Share Equity option exchange Merger Accumulated Total
Capital Premium Reserve Reserve reserve reserve losses Equity
£ £ £ £ £ £ £ £
Balance at 1 October 2022 2,957,161 7,256,188 231,851 20,062 1,390 10,653,881 (23,139,539) (2,019,006)
Six months ended 31 March 2023:
Loss for the period - - - - - - (491,175) (491,175)
Other comprehensive income:
Exchange differences on foreign operations - - - - 38,529 - - 38,529
Total comprehensive income for the period - - - - 38,529 - (491,175) (452,646)
Transactions with owners in their capacity as owners
Share options expense in the period - - - 1,081 - - - 1,081
Total contributions by and distributions to owners of the company recognised - - - 1,081 - - - 1,081
directly into equity
Balance at 31 March 2023 (unaudited) 2,957,161 7,256,188 231,851 21,143 39,919 10,653,881 (23,630,714) (2,470,571)
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 March 2022
Share Foreign
Share Share Equity option exchange Merger Accumulated Total
Capital Premium Reserve Reserve reserve reserve losses Equity
£ £ £ £ £ £ £ £
Balance 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)
Six months ended 31 March 2022:
Loss for the period - - - - - - (282,703) (282,703)
Other comprehensive income:
Exchange differences on foreign operations - - - - 38,884 - - 38,884
Total comprehensive income for the period - - - - 38,884 - (282,703) (243,819)
Transactions with owners in their capacity as owners
Share options expense in the period - - - 4,312 - - - 4,312
Total contributions by and distributions to owners of the company recognised - - - 4,312 - - - 4,312
directly into equity
Balance at 31 March 2022 (unaudited) 2,957,161 7,256,188 231,851 17,301 40,760 10,653,881 (22,554,853) (1,397,711)
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
1. General information
i-nexus Global plc (the "Company") and its subsidiaries (together, the Group)
is a specialist provider of cloud based strategy software and associated
professional services.
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 interim condensed consolidated financial statements were approved for
issue on 27 April 2023.
These condensed consolidated interim financial statements do not comprise
statutory accounts within the meaning of section 434 of the Companies Act
2006. Statutory accounts for the year ended 30 September 2022 were approved by
the Board of Directors on 6 January 2023 and delivered to the Registrar of
Companies. The report of the auditors on those accounts was unqualified, did
not contain an emphasis of matter paragraph and did not contain any statements
under section 498 of the Companies Act 2006.
2. Basis of preparation
These condensed consolidated interim financial information for the six months
ended 31 March 2023 have not been audited or reviewed by the auditors. The
interims have been prepared in accordance with the Disclosure and Transparency
Rules of the Financial Services Authority and with IAS 34, 'interim financial
reporting'. These condensed consolidated interim financial statements should
be read in conjunction with the annual financial statements for the year ended
30 September 2022, which have been prepared in accordance with UK adopted
international accounting standards and company law. The interim condensed
consolidated financial information has been prepared on a going concern basis
and is presented in Sterling to the nearest £1.
After reviewing the Group's forecasts and projections, the Directors have a
reasonable expectation that the Group has 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 these interim financial statements.
A scenario testing exercise, in which the Directors prepared detailed cash
flow forecasts for the period covered by the going concern forecast, was
performed. The forecasts take into account the Directors' views of current and
future economic conditions that are expected to prevail over the period
including assumptions regarding the sales pipeline, future revenues and costs
with various scenarios which reflect growth plans, opportunities and risks.
Alongside management's base case forecast, the Group prepared an extreme
downside scenario. Under this extreme scenario, the Group has given
consideration to the potential actions available to management to mitigate the
impact of these sensitivities, in particular the discretionary nature of costs
incurred by the Group, in order to ensure the continued availability of funds.
Across both this scenario and those scenarios detailed above, the business had
sufficient working capital headroom to continue to operate.
Financial performance in the next 12 months is not expected to be materially
impacted from current period levels due to the long-range revenue visibility
achieved through the recurring revenue business model. These recurring
revenues, representing 90% of total revenue, are considered resilient given
the majority are on multiyear terms. In each scenario, the Board also assumed
that the Group did not have access to any further external funding.
3. Accounting policies
The accounting policies adopted are consistent with those of the previous
financial statements, except in respect of taxes on income which, in the
interim periods, are accrued using the tax rate that would be applicable to
expected total annual performance. New and amended standards and
interpretations need to be adopted in the first interim financial statements
issued after their effective date. There are no new IFRSs or IFRICs that are
effective for the first time for this interim period that would be expected to
have a material impact on the financial statements.
4. Estimates
The preparation of interim financial statements requires management to make
judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets, liabilities, income
and expense. Actual results may differ from these estimates. In preparing
these condensed consolidated interim financial statements, the significant
judgements made by management in applying the Group's accounting policies and
the key sources of estimation uncertainty were the same as those that applied
to the consolidated financial statements for the year ended 30 September 2022,
with the exception of changes in estimates that are required in determining
the provision for income taxes.
5. Segmental reporting
The Group has one single business segment and therefore all revenue is derived
from the rendering of services as stated in the principal activity. The Group
operates in six geographical segments, as set out below. This is consistent
with the internal reporting provided to the chief operating decision maker.
The chief operating decision maker, who is responsible for allocating
resources and assessing performance, has been identified as the management
team comprising the executive directors who make strategic decisions.
Unaudited six Unaudited six
months ended months ended
31 March 31 March
2023 2022
£ £
Revenue analysed by class of business
Licence 1,555,026 1,415,940
Services 118,417 124,327
1,673,443 1,540,267
Unaudited six Unaudited six
months ended months ended
31 March 31 March
2023 2022
£ £
Revenue analysed by geographical market
United Kingdom 360,016 362,005
USA 558,519 426,297
Switzerland 322,830 319,007
Germany 251,355 224,446
Rest of Europe 112,382 69,872
Rest of the World 68,341 138,640
1,673,443 1,540,267
6. Earnings per share
The calculation of basic and diluted loss per share for the six months to 31
March 2023 was based upon the loss attributable to ordinary shareholders of
£491,175 (six months to 31 March 2022: £282,703, year ended 30 September
2022: £870,884) and a weighted average number of ordinary shares in issue of
29,571,605 (six months to 31 March 2022: 29,571,605, year ended 30 September
2022: 29,571,605), calculated as follows:
Weighted average number of ordinary shares
Unaudited six months ended Unaudited six months ended Audited year ended
31 March 31 March 30 September
2023 2022 2022
Loss for the period attributable to equity shareholders of the company (491,175) (282,703) (870,884)
Issued ordinary shares at start of period 29,571,605 29,571,605 29,571,605
Weighted average number of shares at end of period 29,571,605 29,571,605 29,571,605
Earnings per share
(0.02)
(0.01) (0.03)
7. Principal risks and uncertainties
Pursuant to the requirements of the Disclosure and Transparency Rules the
Group provides the following information on its principal risks and
uncertainties. The Group considers strategic, operational and financial risks
and identifies actions to mitigate those risks. These risk profiles are
updated at least annually. The principal risks and uncertainties detailed
within the Group's 2022 Annual Report remain applicable for the first six
months of the financial year. The Group's 2022 Annual Report is available from
the i-nexus website: www.i-nexus.com/company/investor-center/
(http://www.i-nexus.com/company/investor-center/)
8. 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.
9. Statement of Directors' Responsibilities
The Directors confirm that these condensed interim financial statements have
been prepared in accordance with International Accounting Standard 34,
'Interim Financial Reporting', and that the interim management report includes
a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:
- an indication of important events that have
occurred during the first six months and their impact on the condensed set of
financial statements, and a description of the principal risks and
uncertainties for the remaining six months of the financial year; and
- material related-party transactions in the first
six months and any material changes in the related-party transactions
described in the last annual report.
The Directors of i-nexus Global plc are listed in the i-nexus Group plc Annual
Report for 30 September 2022. A list of current directors is maintained on the
i-nexus Global plc website: www.i-nexus.com/company/team/
(http://www.i-nexus.com/company/team/) . Copies of this statement are
available on the investor relations page of our website
(www.i-nexus.com/company/investor-center/
(http://www.i-nexus.com/company/investor-center/) )
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