REG - Ingenta PLC - Half-year Report
21/09/2022 07:01
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220921:nRSU0542Aa&default-theme=true
RNS Number : 0542A Ingenta PLC 21 September 2022
21 September 2022
Ingenta plc
Interim Results
Ingenta plc (AIM: ING), ("Ingenta", the "Company" or the "Group"), a leading
provider of world-class software and services to the global publishing
industry, is pleased to announce its unaudited interim results for the six
months to 30 June 2022.
Financial Key Points
· Group revenues of £5.3m (2021: £5.1m)
· 89% of Group revenues recurring in nature (2021: 85%)
· Gross profit margin 53% (2021: 47%)
· Adjusted EBITDA(*) up 67% to £1.3m (2021: £0.7m)
· Cash from operations up 26% to £1.6m (2021: £1.3m)
· Cash balances increased to £4.4m (31 December 2021: £3.1m)
· Cash generation of £1.4m (2021: £0.8m)
· Earnings per share of 3.23 pence (2021: 2.25 pence)
· Progressive dividend policy with an interim dividend of 1.2 pence
per share (2021: 1 pence)
Operational Key Points
· Two Vista upgrade projects in progress with completion due in
second half of 2022
· Edify implementation project commenced and substantially
completed in the first half of 2022 vindicating the fast-track deployment
model
(*)Earnings before Interest, Tax, Depreciation and Amortisation is calculated
before foreign exchange differences and restructuring costs. See Statement of
Comprehensive Income for reconciliation
As previously announced on 13 September 2022, Ingenta will be presenting via
the Investor Meet Company platform on 21 September 2022 at 15.30 (BST). To
sign up to the Ingenta presentation for free via Investor Meet Company please
click the following link:
https://www.investormeetcompany.com/ingenta-plc/register-investor
(https://www.investormeetcompany.com/ingenta-plc/register-investor) .
Dividend Timetable
The Company is pleased to confirm that an interim dividend of 1.2 pence per
share will be paid on 4 November 2022. The ex-dividend date is 6 October 2022
and the associated record date for the interim dividend is 7 October 2022.
Martyn Rose, Chairman of Ingenta plc, commented:
"I am pleased to announce not only an increase in revenues in the first half
of 2022, but also a continuation of the operational efficiency gains outlined
in prior periods. Revenue growth has been delivered by our Commercial
division, which has successfully expanded the Vista as a service offering
through the customer base. This is an encouraging trend as we look to forge
closer alliances with our customers by removing their technology
administration overhead allowing them to focus on their core activities.
The Content division has also refined its fast-track deployment of the Edify
content distribution platform which we believe is a valuable differentiator in
this market. A project can now be rolled out in under 3 months, which we hope
to leverage in future sales opportunities.
The Group aims to sustain revenue growth by increasing the uptake of our
service offering to existing customers within the core Commercial and Content
divisions. In combination with this, there is an active pipeline of sales
opportunities in both traditional and adjacent vertical markets. Given these
successes, and reflecting our progressive dividend policy, the Board proposes
to pay an interim dividend of 1.2 pence per share and continues to explore
other opportunities to return value to shareholders."
Scott Winner, CEO commented:
"The first six months of 2022 have been hugely positive for Ingenta, as we
reap the rewards of the revised strategic direction put in place several years
ago. In particular, our focus on providing more comprehensive services to our
Vista customers has increased the value we provide to them, leading to our
first period of revenue growth since I became CEO.
Another important achievement was our decision to expand our offering to
better cover the full breadth of customers in our markets. With the delivery
of our web-based multi-tenancy solutions, we are able to serve customers from
the very small, alongside our comprehensive solutions for very large customers
in a cost-appropriate way. This expands our ability to serve current
verticals, broadening our addressable market while also positioning us for
inroads into adjacent verticals.
Our sales and marketing team now have the ability to pursue a broader range of
customers allowing us to establish partnerships with customers at an early
stage. As they mature, they can grow into our comprehensive offerings targeted
at larger businesses."
Certain information contained in this announcement would have been deemed
inside information as stipulated under the UK version of the EU Market Abuse
Regulation (2014/596) which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018, as amended and supplemented from time to time, until
the release of this announcement.
For further information please contact:
Ingenta
plc
Tel: 01865 397 800
Scott Winner / Jon Sheffield
Cenkos Securities plc Tel:
0207 397 8900
Nicholas Wells / Katy Birkin / Dan Hodkinson
Financial Review
The 2022 financial year is the first period when all the Group's planned
efficiency savings came to fruition. In combination with this, the Group has
also reported increased revenues compared to the same period last year. This
revenue growth has been generated from the Commercial arm of the Group,
specifically within the existing Vista customer base, as they take up more
recurring services.
Statement of Comprehensive Income
Group revenue increased by 3% to £5.3m (2021: £5.1m) driven by the increased
uptake of the Vista service offering mentioned above. As a result, the Group's
recurring revenue percentage now stands at 89% (2021: 85%). Gross profit
percentages have also improved to 53% (2021: 47%) as the previously reported
operational efficiency initiatives take full effect. Administrative expenses
include £0.5m of unrealised foreign exchange losses relating to the Group's
intercompany balances which are trading in nature. In the prior period interim
results, these exchange gains and losses were not included within
administration expenses but were offset and included within 'exchange
differences on translating foreign operations'. Adjusted EBITDA, after
accounting for these exchange differences, increased by 68% to £1.3m (2021:
£0.7m).
Total comprehensive income for the period was £1m (2021: £0.4m) which
incorporated a net £0.018m foreign exchange translation loss (2021: £0.012m
loss).
Statement of Cash Flows and Financial Position
The efficiency gains noted above have flowed through to cash generation and
the Group reported operating cash inflows of £1.6m (2021: £1.3m). The
Group's balance sheet remains strong, with no debt other than leases, and cash
balances of £4.4m (2021: £3.1m).
Outlook
The first half of the year is seasonally stronger and more predictable as
customers work through committed projects and annual budgetary spend
allocations. Although we expect such work to continue, the timing and extent
is less certain in the second half of the year as customers look to align
budgets and strategy for the following year. Nevertheless, we remain
optimistic about the prospects for this year and beyond, and the Board
anticipates that results for the year ended 31 December 2022 will be ahead of
current market expectations, taking into account the positive effect of a
number of smaller non-recurring items. Looking ahead to 2023, the Board
remains cautiously optimistic that the underlying positive momentum of the
Group will be maintained.
Jon Sheffield
Chief Financial Officer
Unaudited Condensed Consolidated Interim Statement of Comprehensive Income
Unaudited Unaudited
Six months ended Six months ended
30 June 2022 30 June 2021
Note £'000 £'000
Revenue 5,271 5,106
Cost of sales (2,497) (2,692)
Gross profit 2,774 2,414
Sales and marketing expenses (367) (353)
Administrative expenses (1,861) (1,673)
Profit from operations 546 388
Finance costs (10) (14)
Profit before tax 536 374
Tax (8) -
Retained profit for the period 528 374
Other comprehensive expenses which will be reclassified subsequently to profit
or loss:
Exchange differences on translating foreign operations 478 2
Total comprehensive profit for the period 1,006 376
Basic profit per share - pence 4 3.23 2.25
Diluted profit per share - pence 4 3.12 2.16
Analysis of profit from operations:
Profit before net finance costs, tax, depreciation and amortisation, 1,255 748
restructuring costs and foreign exchange gains and losses (adjusted EBITDA)
Depreciation (213) (293)
Amortisation - (50)
Foreign exchange gain / (loss) (496) (14)
Restructuring costs - (3)
Profit from operations 546 388
Unaudited Condensed Consolidated Interim Statement of Financial Position
Unaudited Unaudited
30 June 2022 30 June 2021
Note £'000 £'000
Non-current assets
Goodwill 3 2,661 2,661
Other intangible assets 3 - 8
Property, plant & equipment 500 889
Deferred tax 1,163 -
4,324 3,558
Current assets
Trade and other receivables 5 1,150 1,434
Cash and cash equivalents 4,413 3,102
5,563 4,536
Total assets 9,887 8,094
Equity
Share capital 1,692 1,692
Merger reserve 11,055 11,055
Reverse acquisition reserve (5,228) (5,228)
Translation reserve (127) (837)
Share option reserve 107 80
Retained earnings (1,750) (2,982)
5,749 3,780
Non-current liabilities
Deferred tax liability 88 2
Leases 77 336
165 338
Current liabilities
Trade and other payables 6 1,856 1,817
Deferred income 2,117 2,159
3,973 3,976
Total equity and liabilities 9,887 8,094
Unaudited Condensed Consolidated Interim Statement of Changes in Equity
Share capital Merger reserve Reverse acquisition reserve Translation reserve Share option reserve Retained earnings Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 January 2022 1,692 11,055 (5,228) (605) 88 (2,278) 4,724
Share based payment expense - - - - 19 - 19
Transactions with owners - - - - 19 - 19
Profit for the period - - - - - 528 528
Other comprehensive income:
Exchange differences on translation of foreign operations - - - 478 - - 478
Total comprehensive income / (expense) for the period - - - 478 - 528 1,006
Balance at 30 June 2022 1,692 11,055 (5,228) (127) 107 (1,750) 5,749
Share capital Merger reserve Reverse acquisition reserve Translation reserve Share option reserve Retained earnings Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 January 2021 1,692 11,055 (5,228) (839) 61 (3,175) 3,566
Shares bought back into treasury - - - - - (181) (181)
Share based payment expense - - - - 19 - 19
Transactions with owners - - - - 19 (181) (162)
Profit for the period - - - - - 374 374
Other comprehensive income:
Exchange differences on translation of foreign operations - - - 2 - - 2
Total comprehensive income / (expense) for the period - - - 2 - 374 376
Balance at 30 June 2021 1,692 11,055 (5,228) (837) 80 (2,982) 3,780
Unaudited Condensed Consolidated Interim Statement of Cash Flows
Unaudited Unaudited
Six months ended Six months ended
30 June 2022 30 June 2021
£'000 £'000
Profit before tax 536 374
Adjustments for:
Depreciation and amortisation 213 343
Share based payment expense 19 19
Interest expense 10 14
Unrealised foreign exchange differences 478 2
Decrease in trade and other receivables 660 784
Decrease in trade and other payables (308) (260)
Cash inflow from operations 1,608 1,276
Tax Paid (8) -
Net cash inflow from operating activities 1,600 1,276
Cash flows from financing activities
Shares bought back into treasury - (181)
Payment of leases (135) (239)
Interest paid (10) (14)
Net cash used in financing activities (145) (434)
Cash flows from investing activities
Purchase of property, plant and equipment (48) (63)
Net cash used in investing activities (48) (63)
Net increase in cash and cash equivalents 1,407 779
Cash and cash equivalents at beginning of period 3,006 2,323
Cash & cash equivalents at end of period 4,413 3,102
Notes to the Unaudited Interim Report for the six months ended 30 June 2022
1. Nature of operations and general information
Ingenta plc (the "Company") and its subsidiaries (together the "Group") is a
provider of technology and supporting services to content providers and
publishers. The nature of the Group's operations and its principal activities
are set out in the full annual financial statements.
The Company is incorporated in the United Kingdom under the Companies Act
2006. The Company's registration number is 00837205 and its registered office
is Suite 2, Whichford House, Oxford OX4 2JY. The condensed consolidated
interim financial statements were authorised for issue by the Board of
Directors on 21 September 2022.
The financial information set out in this interim report does not constitute
statutory accounts as defined in section 404 of the Companies Act 2006. The
Group's statutory financial statements for the year ended 31 December 2021,
prepared under IFRS as adopted by the European Union, have been filed with the
Registrar of Companies. The auditor's report on those financial statements was
unqualified and did not contain a statement under section 498 (2) or section
498 (3) of the Companies Act 2006.
2. Basis of preparation
These unaudited condensed consolidated interim financial statements are for
the six months ended 30 June 2022. They have been prepared following the
recognition and measurement principles of UK adopted international accounting
standards in conformity with the requirements of the Companies Act 2006. They
do not include all of the information required for full annual financial
statements and should be read in conjunction with the consolidated financial
statements of the Group for the year ended 31 December 2021.
These condensed consolidated interim financial statements have been prepared
on the going concern basis under the historical cost convention and have been
prepared in accordance with the accounting policies adopted in the last annual
financial statements for the year ended 31 December 2021.
The accounting policies have been applied consistently throughout the Group
for the purposes of preparation of these consolidated interim financial
statements.
A detailed set of accounting policies can be found in the annual accounts
available on our website, www.ingenta.com (http://www.ingenta.com) or by
writing to the Company Secretary at the registered office as above.
3. Goodwill and Intangibles
Full details of the Group's policies on Goodwill and Intangibles is presented
in the financial statements for the year ended 31 December 2021.
4. Profit per share
Basic profit per share is calculated by dividing the profit attributable to
ordinary shareholders by the weighted average number of ordinary shares
outstanding during the period.
For diluted profit per share, the weighted average number of ordinary shares
in issue is adjusted to assume conversion of all dilutive potential ordinary
shares.
Six months ended Six months ended
30 June 2022 30 June 2021
Attributable profit (£'000) 528 374
Weighted average number of ordinary basic shares (basic) 16,331,679 16,625,214
Weighted average number of ordinary shares (diluted) 16,933,230 17,306,459
Profit per share (basic) arising from both total and continuing operations 3.23p 2.25p
Profit per share (dilutive) arising from both total and continuing operations 3.12p 2.16p
5. Trade and other receivables
Trade and other receivables comprise the following:
30 June 2022 30 June 2021
£'000 £'000
Trade receivables - gross 834 1,148
Less: provision for impairment of trade receivables (101) (142)
Trade receivables - net 733 1,006
Other receivables 4 76
Prepayments and accrued income 413 352
1,150 1,434
6. Trade and other payables
Trade payables comprise the following:
30 June 2022 30 June 2021
£'000 £'000
Trade payables 299 211
Social security and other taxes 337 383
Other payables 522 631
Accruals 698 592
1,856 1,817
7. Contingencies and commitments
There were no contingencies or commitments at the end of this or the
comparative period.
8. Post balance sheet events
There were no material events subsequent to the end of the interim reporting
period that have not been reflected in the interim financial statements.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR MZGZLNGVGZZMRecent news on Ingenta
See all newsREG - Ingenta PLC - Trading Update
AnnouncementREG - Ingenta PLC - Change of Nomad and Broker
AnnouncementREG - Ingenta PLC - Holding(s) in Company
AnnouncementRCS - Ingenta PLC - New customer wins
AnnouncementREG - Ingenta PLC - Half-year Report
Announcement