REG - Insig AI Plc - Interim results
20/12/2023 07:00
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RNS Number : 3744X Insig AI Plc 20 December 2023
Insig AI plc / EPIC: INSG / Market: AIM
20 December 2023
INSIG AI PLC
("INSG" or the "Company")
Unaudited Interim Results for the Six Months ended 30 September 2023
Insig AI plc (AIM:INSG), the data science and machine learning solutions
company serving the asset management industry, is pleased to announce its
unaudited interim results for the six months ended 30 September 2023 and to
provide an update on the Company's progress post the half year end.
Highlights
· Adjusting for interest and depreciation, operating loss reduced
by 80 per cent. to GBP0.2 million.
· Cash and cash equivalents at period end of GBP0.7 million.
· November 2023 disposal of non-core sports business at more than
25 times historic pre-tax profits realised net cash of GBP0.3 million.
· Financial Conduct Authority describes Insig AI as a key
contributor to its TechSprint
For further information, please visit www.insg.ai (http://www.insg.ai/) or
contact:
Insig AI plc
Richard Bernstein, Chairman Richard.bernstein@insg.ai
Colm McVeigh, CEO Colm.mcveigh@insg.ai
Zeus (Nominated Adviser & Broker) David Foreman / James Hornigold / Danny Philips +44 (0) 203 829 5000
Chairman's statement
I am pleased to update you on developments at Insig AI plc. The six months to
30 September 2023 was a period where nearly all our resources were deployed in
two areas. Firstly, following our data and technology collaboration agreement,
working with the Financial Conduct Authority ("FCA"). Secondly, devising and
delivering a new method of assessing the level of transparency of disclosure
within corporate reporting. Streamlining disclosure and making information
easily available is urgently required. Until regulation provides decisive
leadership and clear rules, as is the case with accounting standards, many
corporates are providing excessive non-financial information, which can
confuse market participants. We believe that once there is a standard
regulatory framework for the disclosure of non-financial information, we will
be ideally positioned to capitalise. In the meantime, our sales efforts are
focussed on corporates who recognise the need to improve transparency and
disclosure.
Data and technology collaboration with the Financial Conduct Authority ("FCA")
In April 2023, we announced that we would be providing the data and software
platforms to the FCA's 2023 TechSprint, known as the Global Financial
Innovation Network's (GFIN) Greenwashing TechSprint. The GFIN Greenwashing
TechSprint brought together 13 international regulators.
The goal of the project was to develop a tool or solution that can help
regulators tackle or mitigate the risks of greenwashing in financial services
across the globe. The project focused on how technology, including AI and
Machine Learning, can enable regulators and supervisors to verify that
ESG-related product claims to retail consumers are accurate and complete and
how technology can help monitor, collate, and identify examples of
greenwashing from financial services firms' websites, social media platforms,
and other documentation or data which can also be shared across jurisdictions.
Insig AI provided our data and technology platform for onboarding of partners
and participants of the GFIN Greenwashing TechSprint. The core data set
comprised our database of pdf and machine-readable corporate financial and ESG
documents with entity mapping and sentence-level classification against 15 ESG
issues.
Participants gained access to Insig AI's technology via the ESG Research Tool
app, which combines machine learning, Natural Language Processing and Elastic
search capability for efficient document interrogation and comparison across
the database of reports. We also facilitated the collection, tagging and
addition of new corporate documents into the database.
At the end of September 2023, the FCA publicly referred to Insig AI as a key
contributor. I am now delighted to report that the FCA has asked us to become
a permanent partner within its "digital sandbox."
Launch of The Transparency and Disclosure Index ("TDI")
At the end of October 2023, we announced the launch of The Transparency and
Disclosure Index ("TDI"). Using evidence-based analysis of more than 200
million machine readable sentences from our corporate disclosure document
repository, the TDI demonstrates what stakeholders and market participants
require: how well a company is disclosing non-financial information and how
transparent it is. Scoring highlights gaps that are actionable for each
company to remedy. The TDI was developed following discussions with FTSE 100
and FTSE 250 companies at CEO, CFO and Head of Investor Relations level.
Since 2015, the number of corporate reports produced by FTSE 100
constituents has mushroomed by 626% from an average of 2.5 reports per company
to 17.5. In 2022, BT Group produced 47 separate reports and Tesco published 46
reports. It would take an analyst 18 months to collect and read the
disclosures from the FTSE 100 constituents.
Machine learning and AI can digest this array of detail and distil down to
what corporate reporting is supposed to be about: informing the reader,
thereby allowing better decision making and actions.
The TDI framework is based on best practice principles behind the convergence
of reporting standards. Reports are compared to best practice, benchmarking
against peer groups, measuring website clarity and accessibility of documents.
It highlights where the range of sustainability documents is considered
excessive and flags where companies may be over-using certain keywords
identified as being commonly used in greenwashing without evidence and are
possibly misleading.
The TDI's objective is to simplify corporate reporting to what matters: easy
access and direct sight of the core issues of corporate disclosure. The TDI
gives corporates the evidence to limit disclosure to what is important and
examples of best practice.
The TDI focuses on the standard of corporate disclosure and transparency, not
a company's ESG credentials. Within the FTSE 100, the highest ranking 20
companies include Royal Dutch Shell, International Consolidates Airlines, Rio
Tinto, Anglo American, BAE Systems and BAT Industries. Lloyds Banking Group
and Rightmove are amongst the lowest scoring constituents.
A demo of the Transparency and Disclosure Index can be accessed
here: https://tdi-demo.insg.ai/
(https://eur03.safelinks.protection.outlook.com/?url=https%3A%2F%2Ftdi-demo.insg.ai%2F&data=05%7C02%7Crb%40crystalamber.com%7Cf9862b88bbc1449c2f0d08dbfe7438d5%7C2403e1aaab2c45bcb2678f13dbe7f7a1%7C0%7C0%7C638383547337134926%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=Fbtgbw9YVgL9A225MZc7ISoKPjlGZrJK8ZRFR%2F2awmA%3D&reserved=0)
In my last Chairman's Statement, I commented that our view was that the huge
shift in asset allocation to government bonds, where the risk-free rate
returned to levels not seen for more than 20 years, had resulted in many
purchasing and investment decisions being deferred. Against this backdrop, it
is unsurprising that we experienced a decline in our first half revenues, with
machine learning and data services revenue declining by £0.1 million. On a
consolidated basis, first half revenue fell by 11 per cent.
In August, I stated that it was our mission to endure this transitory period.
At the end of last month, the FCA published its Sustainability Disclosure
Requirements. Together with its intention to bring into force
anti-greenwashing rules by the end of May 2024, guidance is clear on how firms
are to measure and provide evidence in line with fund labels. Insig AI is
therefore positively positioned, as evidence-based data at scale will be an
essential component for firms.
Insig AI, using its machine learning expertise, has the capability to source,
analyse and categorise vast quantities of data to accelerate and enhance human
decision making. With a centralised library of transparent, tagged and
machine-readable data of over 6,000 companies, we believe that we possess an
unrivalled database and navigational tool for both corporations and market
participants, encompassing over 200 million machine readable sentences.
Financial performance
For the six months ending 30 September 2023, we are reporting a total
comprehensive loss from all activities of GBP1.8 million, which includes
depreciation and amortisation of GBP1.4 million and deferred tax of GBP0.1
million. Adjusting for depreciation and amortisation, the operating loss
reduced by 80% to GBP0.2 million. The loss for the comparative period was
GBP1.2 million.
Cash at bank as at 30 September 2023 was GBP0.7 million. Following the period
end, in November 2023, we announced the disposal of the legacy Sports in
Schools business. This realised net proceeds of GBP0.3 million.
In August, we forecast that the Insig AI business would continue to achieve
increases in revenue in the current and following financial year and for
operational profitability in the current year and beyond. As we approach the
final quarter of our financial year, taking account of proposals with
prospects, our pipeline and the status of our strategic discussions with
potential partners, we remain of that view.
Successful equity funding and working capital
In April 2023, the Company announced that it had completed an equity
subscription raising GBP0.9 million at 17p per share, being the closing price
on 20 April 2023. I subscribed for GBP0.15 million.
The subscribed for shares were issued from shares held in treasury, being
shares gifted to the Company in December 2022 by Insight Capital founders and
directors of the Company, Steve Cracknell and Warren Pearson, Chief Product
Officer and Chief Technology Officer respectively. As a result, effectively,
existing shareholders suffered no equity dilution.
The board continues to closely monitor the level of working capital. Based on
our expectations for new business wins in the coming quarter and beyond, we
believe that the business has sufficient working capital. However, the board
would consider an injection of equity should a potential partner wish to take
a strategic equity stake to fast track growth. The board's view is that should
this occur, pricing should reflect the value of the Company's repository of
corporate disclosures and its machine learning and data science expertise.
Disposal of Sports in Schools Limited and The Elms Group Limited
Post period end, on 14 November 2023, the Company's 85.87% owned subsidiary,
Pantheon Leisure plc ("Pantheon"), entered into a sale agreement for Sports in
Schools and Elms Group with Haygreen Limited for a total cash consideration
payable of GBP0.3 million (the "Cash Consideration").
Sports in Schools generated a profit before tax of approximately GBP31,000
during the year ended 31 March 2023 whilst Elms Group generated a loss before
tax of approximately GBP12,000 during the same period.
As previously announced on 12 September 2022, I entered into a convertible
loan agreement with the Company for a total consideration of GBP0.75 million,
secured against the ordinary shares of Westside Sports Limited owned by the
Company, which had interests in Ultimate Player Limited, Pantheon Leisure plc,
Sports in Schools Limited and The Elms Group Limited. Upon completion of the
Disposal, I agreed to revise the terms of the Convertible Loan including
releasing the security held over West Sports Limited.
Convertible loans
In May 2022, I provided the Company with an unsecured convertible loan
facility of GBP1.0 million. In June 2022, the Company announced that it had
also agreed a GBP0.5 million convertible loan, on the same terms as my own
facility, with David Kyte, a long-term shareholder of the Company. These loan
facilities were fully utilised and were due for repayment on 31 December 2022.
In that month, both David Kyte and myself agreed to extend these loans by 12
months and these were due for repayment on 31 December 2023.
I'm pleased to report that both David Kyte and I have agreed to extend the
duration of the loans to 30 June 2024. For my loan, interest will continue to
be charged at 8 per cent. per annum and the conversion price will remain at
20p per share. For David Kyte's loan, the company has agreed to increase the
coupon on the loan from 8 per cent. to 12 per cent, to reflect the significant
increase in interest rates and to amend the conversion price from 18p per
share to 15p per share.
In September 2022, I provided a further convertible loan facility of up to
GBP0.75 million. This facility was fully utilised. This loan was secured
against the share capital held by the Company in Westside Sports Limited,
which had interests in Ultimate Player Limited, Pantheon Leisure plc, Sport in
Schools Limited and the Elms Group Limited. As stated above, in November 2023,
I agreed to release security over this loan and I converted the loan plus
accumulated interest into 3,925,380 ordinary shares at 20p per share.
AB CarVal partnership
In February 2022, the Company announced a landmark agreement with AB CarVal to
develop and launch a new line of high yield ("HY") and investment grade ("IG")
ESG scoring tools to be used by AB CarVal to optimise HY and/or IG portfolios
based on ESG considerations. As previously stated, our share of fees is based
on AB CarVal's assets under management ("AUM") raised in connection with these
HY and/or IG focused investment pools and we continue to anticipate that as AB
CarVal secures mandates, our fees will increase commensurably and continue for
several years. In July 2022, AB CarVal was acquired by Alliance Bernstein.
In April 2023, we reported that over the last year, we worked closely with AB
CarVal on refining the ESG scoring tools and that we believe that these tools.
We continue to expect a slow and gradual ramp up of sustainable revenues from
this partnership. Whilst the recent uncertain ESG landscape in the US
described above has inevitably made the ESG fundraising environment far slower
and more challenging, we continue to remain of the view that AB CarVal has a
market leading product, which in time, can garner support with growing
traction.
Prospects
Last month, we announced that we had entered a commitment to provide a
scalable and automated solution to a US and European based provider of
Collateralised Loan Obligations and structured credit products with assets
under management of more than GBP3 billion.
Although the commitment of work was for an initial sum of GBP60,000, it
included the opportunity for further follow-on projects. Insig AI is providing
a central database allowing for the development and application of machine
learning methods. The commitment of work also involves integrating our data
analytics software into the launch of a potential new fund, which could
provide longer term recurring revenue streams for the Company. I'm pleased to
report that this client relationship is developing well. Furthermore, in
recent weeks, we have entered discussions with a European based investment
house with a view to securing a significant mandate to deliver a host of data
science solutions.
Since the period end, the positive feedback from our newly launched
Transparency and Disclosure Index ("TDI") is translating into a much broader
list of prospects. In the coming quarter, our mission is to convert several of
these positive trial results and current client proposals into substantial
revenues. Our ability to meet or beat current year revenue and profitability
estimates will depend on this success.
We have previously commented on the current bear market for asset managers and
that many have characterised this as being the harshest investment climate for
a generation. Despite this backdrop, I am determined to do whatever it takes
to ensure that this business now fully monetises its immensely valuable
repository of corporate disclosures and machine learning and data science
expertise. I will take whatever action is necessary to accelerate this
process.
Richard Bernstein
Chairman
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Notes 6 months to 30 September 2023 Unaudited 6 months to 30 September 2022 Unaudited
£ £
Continuing operations
Revenue 882,478 953,563
Cost of sales (384,916) (359,411)
Gross profit 497,562 594,152
Administration expenses (2,175,056) (3,224,761)
Other gains/(losses) 59,470 47,533
Other income 877 201
Operating loss (1,617,147) (2,582,875)
Finance income 147 -
Finance costs (64,841) (15,483)
Loss before income tax (1,681,841) (2,598,358)
Deferred tax (129,255) (208,738)
Loss for the period after income tax (1,811,096) (2,807,096)
Total comprehensive loss attributable to owners of the Parent (1,810,660) (2,810,503)
Total comprehensive profit/(loss) attributable to non-controlling interests (436) 3,407
Basic and diluted 5 (1.74)p (2.660)p
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at As at As at
30 September 2023 Unaudited 31 March 2023 Audited 30 September 2022 Unaudited
£ £ £
Notes
Non-Current Assets
Property, plant and equipment 14,759 37,648 66,483
Right of Use Assets 23,127 28,266 33,406
Intangible assets 7 19,464,501 20,309,278 37,693,489
19,502,387 20,375,192 37,793,378
Current Assets
Trade and other receivables 161,812 719,840 226,774
Cash and cash equivalents 659,670 280,584 150,084
821,482 1,000,424 376,858
Total Assets 20,323,869 21,375,616 38,170,236
Non-Current Liabilities
Lease liabilities 11,971 16,868 24,930
Deferred tax liabilities 2,715,350 2,586,096 4,368,826
2,727,321 2,602,964 4,393,756
Current Liabilities
Trade and other payables 611,515 932,927 984,546
Lease liabilities 10,386 10,386 8,000
Convertible loans 8 2,318,173 2,261,769 1,514,517
2,940,074 3,205,082 2,507,063
Total Liabilities 5,667,395 5,808,046 6,900,819
Net Assets 14,656,474 15,567,570 31,269,417
Capital and Reserves Attributable to
Equity Holders of the Company
Share capital 3,109,804 3,109,804 3,109,804
Share premium 39,977,403 39,077,403 39,077,403
Other reserves 377,381 377,381 325,583
Share based payments reserve 18,845 18,845 -
Retained losses (28,775,506) (26,964,846) (11,194,113)
Equity attributable to shareholders of the parent 14,707,927 15,618,587 31,318,677
Non-controlling interests (51,453) (51,017) (49,260)
Total Equity 14,656,474 15,567,570 31,269,417
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Note Share capital Share premium Share based payment reserve Other reserves Retained losses Total equity Non Controlling Interest Total equity
£ £ £ £ £ £ £ £
Balance as at 1 April 2022 3,109,804 39,077,403 17,240 325,583 (8,400,850) 34,129,180 (52,667) 34,076,513
Loss for the period - - - - (2,810,503) (2,810,503) 3,407 (2,807,096)
Total comprehensive loss for the period - - - - (2,810,503) (2,810,503) 3,407 (2,807,096)
Balance as at 30 September 2022 3,109,804 39,077,403 17,240 325,583 (11,211,353) 31,318,677 (49,260) 31,269,417
Balance as at 1 April 2023 3,109,804 39,077,403 18,845 377,381 (26,964,846) 15,618,587 (51,017) 15,567,570
Loss for the period - - - - (1,810,660) (1,810,660) (436) (1,811,096)
Total comprehensive loss for the period - - - - (1,810,660) (1,810,660) (436) (1,811,096)
Sale of treasury shares - 900,000 - - - 900,000 - 900,000
Total transactions with owners, recognised in equity - 900,000 - - - 900,000 - 900,000
Balance as at 30 September 2023 3,109,804 39,977,403 18,845 377,381 (28,775,506) 14,707,927 (51,453) 14,656,474
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
6 months to 30 September 2023 6 months to 30 September 2022 Unaudited
Unaudited £
£
Notes
Cash flows from operating activities
Loss before taxation (1,810,660) (2,810,503)
Adjustments for:
Depreciation and amortisation 1,382,456 1,371,290
Increase in deferred tax provision 129,255 198,738
Minority interest (436) 3,407
Disposal of Property Pant and Equipment 4,803 -
Finance expense (4,898) 15,458
Cash received for R&D refund 542,000 -
Increase/(decrease) in trade and other receivables 19,146 7,545
Increase/(decrease) in trade and other payables (265,008) 239,714
Net cash used in operations (3,342) (974,351)
Cash flows from investing activities
Purchase of property, plant and equipment (595) (263)
Disposal of Property Pant and Equipment 3,160 -
Development expenditure 7 (517,018) (834,952)
Net cash used in investing activities (514,453) (835,215)
Cash flows from financing activities
Funds from sale of treasury shares 900,000 -
Repayment of leasing liabilities and bank borrowings (3,119) (13,740)
Proceeds from issue of convertible loan note - 1,500,000
Net cash generated from financing activities 896,881 1,486,260
Net decrease in cash and cash equivalents 379,086 (323,306)
Cash and cash equivalents at beginning of period 280,584 473,390
Cash and cash equivalents at end of period 659,670 150,084
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. General Information
Insig AI plc is a data science and machine learning company listed on the AIM
Market of the London Stock Exchange.
The Company is domiciled in the United Kingdom and incorporated and registered
in England and Wales, with registration number 03882621. The Company's
registered office is 6 Heddon Street, London, W1B 4BT.
2. Basis of Preparation
The condensed consolidated interim financial statements have been prepared in
accordance with the requirements of the AIM Rules for Companies. As permitted,
the Company has chosen not to adopt IAS 34 "Interim Financial Statements" in
preparing this interim financial information. The condensed interim financial
statements should be read in conjunction with the annual financial statements
for the year ended 31 March 2023, which have been prepared in accordance with
UK adopted international accounting standards.
The interim financial information set out above does not constitute statutory
accounts within the meaning of the Companies Act 2006. It has been prepared on
a going concern basis in accordance with the recognition and measurement
criteria of UK adopted international accounting standards.
Statutory financial statements for the year ended 31 March 2023 were approved
by the Board of Directors on 13 August 2023 and delivered to the Registrar of
Companies. The report of the auditors on those financial statements was
unqualified with a material uncertainty in relation to the Company's ability
to continue as a going concern. The condensed interim financial statements are
unaudited and have not been reviewed by the Company's auditor.
Going concern
These financial statements have been prepared on the going concern basis.
Given the Group's current cash position and its demonstrated ability to raise
capital, the Directors have a reasonable expectation that the Group has
adequate resources to continue in operational existence for the foreseeable
future. Thus, they continue to adopt the going concern basis of accounting
preparing the condensed interim financial statements for the period ended 30
September 2023.
Notwithstanding the above, a material uncertainty exists that may cast
significant doubt on the Group's ability to continue as a going concern and,
therefore, that the Group may be unable to realise their assets or settle
their liabilities in the ordinary course of business. As a result of their
review, and despite the aforementioned material uncertainty, the Directors
have confidence in the Groups forecasts and have a reasonable expectation that
the Group will continue in operational existence for the going concern
assessment period and have therefore used the going concern basis in preparing
these consolidated financial statements.
The factors that were extant at 31 March 2023 are still relevant to this
report and as such reference should be made to the going concern note and
disclosures in the 2023 Annual Report and Financial Statements ("2023 Annual
Report").
Risks and uncertainties
The Board continuously assesses and monitors the key risks of the business.
The key risks that could affect the Company's medium term performance and the
factors that mitigate those risks have not substantially changed from those
set out in the Company's 2023 Annual Report and Financial Statements, a copy
of which is available on the Company's website: www.insgai.com
(http://www.insgai.com) . The key financial risks are liquidity risk, credit
risk, interest rate risk and fair value estimation.
Critical accounting estimates
The preparation of condensed interim financial statements requires management
to make estimates and assumptions that affect the reported amounts of assets
and liabilities at the end of the reporting period. Significant items subject
to such estimates are set out in Note 2 of the Company's 2023 Annual Report
and Financial Statements. The nature and amounts of such estimates have not
changed significantly during the interim period.
3. Accounting Policies
Except as described below, the same accounting policies, presentation and
methods of computation have been followed in these condensed interim financial
statements as were applied in the preparation of the Company's annual
financial statements for the period ended 31 March 2023.
3.1 Changes in accounting policy and disclosures
(a) New and amended standards adopted by the Group and Company
The International Accounting Standards Board (IASB) issued various amendments
and revisions to International Financial Reporting Standards and IFRIC
interpretations. The amendments and revisions were applicable for the period
ended 30 September 2023 but did not result in any material changes to the
financial statements of the Group or Company.
Of the other IFRS and IFRIC amendments, none are expected to have a material
effect on future Group or Company Financial Statements.
(b) New standards, amendments and Interpretations in issue but not yet
effective or not yet endorsed and not early adopted
The standards and interpretations that are issued, but not yet effective, up
to the date of issuance of the condensed interim financial statements are
listed below. The Group intends to adopt these standards, if applicable when
they become effective.
Standard Impact on initial application Effective date
IFRS 17 (Amendments) Insurance contracts 1 January 2023
IAS 1 (Amendments) and IFRS Practice Statement 2 Disclosure of Accounting Policies 1 January 2023
IAS 8 (Amendments) Definition of Accounting Estimate 1 January 2023
IAS 12 Income Taxes (Amendments) Deferred Tax Related to Assets and Liabilities Arising from a Single 1 January 2023
Transaction
IAS 1 (Amendments) Classification of liabilities as current or non-current 1 January 2024
IFRS 16 (Amendments) Lease Liability in a Sale and Leaseback 1 January 2024
None are expected to have a material effect on the Group or Company Financial
Statements.
4. Dividends
No dividend has been declared or paid by the Company during the six months
ended 30 September 2023 (six months ended 30 September 2022: £nil).
5. Loss per Share
The calculation of earnings per share is based on a retained loss of
£1,810,660 for the six months ended 30 September 2023 (six months ended 30
September 2022: £2,810,503) and the weighted average number of shares in
issue in the period ended 30 September 2023 of 103,566,056 (six months ended
30 September 2022: 105,675,645).
No diluted earnings per share is presented for the six months ended 30
September 2023 or six months ended 30 September 2022 as the effect on the
exercise of share options would be to decrease the loss per share.
6. Business segment analysis
6 months to 30 September 2023 Unaudited
Machine learning and Data services Sport in Schools Total
£
£ £
Revenue 182,797 699,681 882,478
Costs of sales - (384,916) (384,916)
Administrative expenses (1,874,622) (300,434) (2,175,056)
Other gains/(losses) 59,677 (207) 59,470
Other income 490 387 877
Finance Income 147 - 147
Finance costs (64,654) (187) (64,841)
Profit/(Loss) before tax per reportable segment (1,696,165) 14,324 (1,681,841)
6 months to 30 September 2022 Unaudited
Machine learning and Data services Sport in Schools Total
£
£ £
Revenue 289,524 664,039 953,563
Costs of sales (2,545) (356,866) (359,411)
Administrative expenses (2,945,323) (279,438) (3,224,761)
Other gains/(losses) 58,570 (11,037) 47,533
Other income - 201 201
Finance costs (15,483) - (15,483)
Profit/(Loss) before tax per reportable segment (2,615,257) 16,899 (2,598,358)
7. Intangible assets
The movement in capitalised intangible costs during the period was as follows:
Cost and Net Book Value Goodwill Development Costs Technology assets Customer relationships Total
£ £ £ £ £
Balance as at 1 April 2023 9,965,895 - 9,660,673 682,710 20,309,278
Additions - 517,018 - - 517,018
Amortisation - (305,594) (1,008,998) (47,203) (1,361,795)
As at 30 September 2023 9,965,895 211,424 8,651,675 635,507 19,464,501
8. Convertible Loans
30 September 2023 31 March 2023
£ £
Not later than one year:
Convertible loan note 2,250,000 2,250,000
Convertible loan note interest to date 119,971 63,567
Derivative split (51,798) (51,798)
Total 2,318,173 2,261,769
On the 4 May 2022, the Company entered into a formal agreement for a £1.0m
convertible loan note to be provided by Richard Bernstein, Non-Executive
Chairman of the Company.
On 17 June 2022, the Company entered into a convertible loan facility
agreement with David Kyte, a long-term shareholder in the Company for
£500,000.
On the 12 September 2022, the Company entered into a formal agreement for a
£750,000 convertible loan note to be provided by Richard Bernstein,
Non-Executive Chairman of the Company.
On 22 December 2022, the Company agreed revised terms for both the convertible
loan note (CLN) agreements with Richard Bernstein and David Kyte for £1m and
£0.5m respectively.
9. Events after the balance sheet date
On 15 November 2023, the Company announced the disposal of two group
subsidiaries - Sport in Schools Limited and The Elms Group Limited. The
subsidiaries were sold to Haygreen Limited for a cash consideration of
£300,000. Pursuant to the disposal, Sport in Schools declared a dividend
payable to Pantheon Leisure Plc of approximately £262,000.
On 15 November 2023, the Company also announced the receipt of notice from
Richard Bernstein to convert the current balance of the convertible loan,
being £785,076 into 3,925,380 ordinary shares at a conversion price of 20.0
pence per share.
10. Approval of interim financial statements
The Condensed interim financial statements were approved by the Board of
Directors on 19 December 2023.
11. Availability of this announcement
Copies of this announcement are available from Insig AI website at
www.insg.ai.
**ENDS**
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