REG - Pelatro PLC - Half-year Report

PelatroAnnouncement

29/09/2020 07:01

RNS Number : 3593A
  
Pelatro PLC
  
29 September 2020
  
 

 
 
29 September 2020
Pelatro Plc
 
("Pelatro" or the "Group")
 
Interim results
 
New contract win
 
 
Pelatro Plc (AIM: PTRO), the precision marketing software specialist, is pleased to announce today its interim results for the 6 months ended 30 June 2020.
 
Financial highlights
 
•             Revenue $2.29m (H1 2019: $2.71m)
•             Recurring revenue $1.53m (H1 2019: $0.84m), 67% of revenue (H1 2019: 31%)
•             Adjusted EBITDA* $0.66m (H1 2019: $0.81m)
•             EBITDA margin 29%
•             Adjusted earnings per share (0.6)¢ (H1 2019: 0.5¢)
•             Gross cash as at 30 June 2020 $0.75m (at 31 December 2019: $1.12m); approximately $2.7m received from debtors since FY19 end
 
Operational highlights
 
•             New contract win with an OpCo of an existing customer group - expansion within the group thereby strengthening our position further
•             mViva successfully installed at our largest customer site (350m subscribers) - a major milestone with respect to the maturity of our software
 
Post period end highlights
 
•             Completed placing of 4.5m shares to raise £2.1m (pre expenses)
•             Gross cash at 31 August $3.16m
•             Current revenue visibility of $5m for full year
•             Plus a near-term pipeline of $15m, of which $4m is from existing customers
 
 
New contract win
 
Pelatro also announces that it has expended its relationship with a large telco group, which is a customer of Pelatro, by winning a new contract from another opco within that group. This contract is expected to contribute about US$1.5m of revenue over a 5 year period and will add to our recurring revenue base.
 
 
Outlook
 
Management expectations for the year underpinned by:
 
•             revenue visibility of $5m for full year (including $2.3m reported for first half)
•             2020 pipeline of $8m, of which of which $4m is from existing customers for various new modules and/or products, i.e. cross-selling opportunities where Pelatro is the only contender in most cases
 
 
Richard Day, Non-executive Chairman of Pelatro commented:
 
"Our interim results follow the equity fundraising we announced in August, in which we successfully raised £2.1m from new and existing shareholders to invest in sales and marketing and help fund our continuing organic growth.
 
These remain challenging times in world markets generally with the continuing Covid-19 pandemic; however, consumers are still using and relying on their mobile phones and we are working closely with our clients, the telcos, to ensure that the best service can be offered to their millions of users. We were able to announce today a new contract with the operating company of one of our existing companies. We continue to develop new and innovative products and our strategy remains focussed on increasing our Annual Recurring Revenue.
 
As with last year, we anticipate significant weighting of revenue towards our second half. We have had a good start to the second half and we have a strong pipeline from which we expect to be able to deliver revenue in line with expectations on the basis of license sales. However, we will continue to prefer gain share and managed service contracts where possible which give significantly higher returns to Pelatro over the contract length. With the pace of customer engagement picking up there remains a lot of work to be done but we are looking forward to the future with every confidence."
 
 
Analyst presentation
 
A copy of the results presentation provided to analysts will be available on Pelatro's website later today (www.pelatro.com).
 
For further information contact:
 



Pelatro Plc


 




Subash Menon, Managing Director


c/o Cenkos




Nic Hellyer, Finance Director


 




 


 




Cenkos Securities plc (Nominated Adviser and Broker)


+44 (0)20 7397 8900




Stephen Keys / Cameron MacRitchie (corporate finance)


 




Michael Johnson (sales)


 



 
 
* earnings before interest, tax, depreciation, amortisation, exceptional items and share-based payments
 
 
Notes to editors
 
The Pelatro Group was founded in March 2013 by Subash Menon and Sudeesh Yezhuvath with the objective of offering specialised, enterprise class software solutions for customer engagement principally to telcos who face a series of challenges including market maturity, saturation and customer churn.
 
Pelatro provides its "mViva" platform for use by customers in B2C and B2B applications, and is well positioned in the Customer Engagement space. Our technology orchestrates the digital journey of the customers of the telcos through contextual, relevant and real time offers and loyalty programs across multiple channels including websites, social media, apps and others.
 
For more information about Pelatro, visit www.pelatro.com
 




 
Managing Director's statement
 
Engagements with existing customers like implementation and support are progressing well despite Covid-19. With respect to new contracts, while there have been Covid-19 related delays, we expect our overall win rate to remain the same. The additional level of scrutiny that businesses had introduced with respect to investments had lengthened the sales cycle over the past 6 months; however, we are now starting to experience positive movement with customers starting to release contracts and purchase orders. The contract win announcement from us today is a result of this positive movement. Consequently, given the level of the current pipeline, we are confident of achieving our order booking target for 2020. 
 
Given that all our customers are telcos, we are delighted to note that their businesses, while impacted to some extent due to Covid-19, are quite resilient due to the higher level of usage of data by their consumers. Most businesses have moved online as have educational institutions and a variety of other activities. This move has resulted in considerable increase in data consumption by both individuals and enterprises leading to higher revenue from data products offered by telcos. 
 
The new contract win announced today within a telco group, who is already our customer, considerably improves the value of that customer as a reference. As well as bringing valuable additional revenue, it acts as proof of further acceptance of mViva within that telco group. This success further solidifies Pelatro's position within the Customer Engagement space.
 
As noted in the announcement of the placing on 4 August, the Group intends to strengthen the sales team in both existing emerging and new developed markets. Interviews are already in progress to identify and appoint sales persons to cover both Europe and the Middle East/Africa.
 
 
Financial review
 
Revenue and profitability
 
In the six months to 30 June 2020 revenue decreased by 15% over the comparable period to $2.29m (H1 2019: $2.71m). Like many companies, we have experienced some delays as a result of Covid-19 but the Group remains confident that this is business will be picked up in the second half, which is the strongest period for us historically. 
 
Of the $2.29m, approximately $1.53m (H1 2019: $0.84m) was recurring revenue, comprising managed services, post contract support and gain share income. Taking change requests of $0.34m into account, over 80% of revenue is now repeating in nature.
 
Underlying operating loss (excluding the impact of non-cash share-based payments, amortisation of customer-related intangible assets and exceptional items) was $0.43m (H1 2019: $0.20m profit). 32 extra staff have been employed to service our large managed services contract, although the majority of these were taken on after the period end.
 
Net cash and trade receivables
 
Cash generated from operating activities was approximately $1.18m after working capital movements (H1 2019: $0.34m). After net financing receipts of $0.81m (excluding approximately $93,000 relating to lease payments under IFRS 16) and capital expenditure of around $2.00m, gross cash at 30 June 2020 was approximately $0.75m. Financial debt (excluding IFRS 16 liabilities) was approximately $1.29m, giving net debt of approximately $0.54m (FY 2019: $0.69m net cash). Post period end, the Group completed a fundraising, raising £2.1m before expenses. 
 
Short-term trade receivables (including unbilled revenue but excluding contract assets) as at 30 June 2020 were $4.80m (31 December 2019 $5.28m) .
 
 
Expenditure on non-current assets
 
Capitalised development expenditure was $1.21m (H1 2019: $1.11m) and the Group spent $0.79m on fixed assets, the vast majority of which was computer server equipment required to fulfil the significant managed service contract and which is already producing revenue. This was financed by way of a matching term loan.
 
 
Current trading and outlook
 
As with previous years we anticipate significant weighting of revenue towards the second half. The near term pipeline remains strong and the Group will continue to focus on transitioning this from "one time" revenue like license fees to "recurring revenue" which is more sustainable and predictable. In view of the changing economic scenario, telcos are increasingly exploring opex rather than capex solutions. This is naturally more conducive to our strategy and consequently our transition to recurring revenue is progressing unabated. We expect this trend to be in line with our expectations resulting in significant increase in recurring revenue. We are confident of recurring revenue, as a proportion of our total revenue, moving to more than 80% in the next couple of years. 
 
 




 
Group statement of comprehensive income











6 months to
30 June 2020


6 months to
30 June 2019


Year to
December 2019








Note


$'000


$'000


$'000












(unaudited)


(unaudited)


(audited)




Revenue


2


2,291


2,714


6,667




Cost of sales and provision of services






(667)


(634)


(999)












_______


_______


_______




Gross profit






1,624


2,080


5,668


























Adjusted administrative expenses






(1,738)


(1,879)


(4,048)












_______


_______


_______




Adjusted operating profit/(loss)






(114)


201


1,620




Exceptional items


3


149


-


236




Amortisation of acquisition-related intangibles


3


(342)


(349)


(686)




Share-based payments


3


(27)


(49)


(52)












_______


_______


_______




Operating profit/(loss)






(334)


(197)


1,118




Finance income


4


37


20


54




Finance expense


5


(106)


(85)


(164)












_______


_______


_______




Profit/(loss) before taxation






(403)


(262)


1,008




Income tax credit/(expense)






(36)


4


(194)












_______


_______


_______




PROFIT/(LOSS) FOR THE PERIOD






(439)


(258)


814


























Other comprehensive income/(expense):




















Items that may be reclassified subsequently to profit or loss:




















Exchange differences






21


1


(25)












_______


_______


_______




Other comprehensive income, net of tax






21


1


(25)


























TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE PERIOD






(418)


(257)


789


























Earnings/(loss) per share




















Reported




















Basic and diluted


6


(1.3)¢


(0.8)¢


2.5¢


























Adjusted




















Basic and diluted


6


(0.6)¢


0.5¢


4.2¢

























 




 
Group statement of financial position











As at
30 June 2020


As at
30 June 2019


As at 31 December 2019








Note


$'000


$'000


$'000












(unaudited)


(unaudited)


(audited)




Assets




















Non-current assets




















Intangible assets


7


11,132


10,648


10,891




Property, plant and equipment


8


1,220


408


515




Right-of-use assets


9


240


420


339




Deferred tax assets






92


-


63




Contract assets






446


117


519




Trade and other receivables






238


306


231












_______


_______


_______












13,368


11,899


12,558


























Current assets




















Contract assets






246


304


293




Trade receivables






4,800


4,272


5,283




Other assets






576


425


501




Cash and cash equivalents


                        


749


1,118


1,101












_______


_______


_______












6,371


6,119


7,178


























Total assets






19,739


18,018


19,736


























Liabilities




















Non-current liabilities




















Borrowings


10


1,145


359


362




Lease liabilities


11


104


260


187




Contract liabilities






228


202


274




Long-term provisions






113


-


124




Other financial liabilities


13


-


1,187


-












_______


_______


_______












1,590


2,008


947


























Current liabilities




















Trade and other payables


12


892


356


523




Borrowings


10


148


73


246




Lease liabilities


11


171


224


205




Contract liabilities and deferred revenue






337


257


665




Other financial liabilities


13


801


-


948












_______


_______


_______












2,349


910


2,587


























Total liabilities






3,939


2,918


3,534


























NET ASSETS






15,800


15,100


16,202


























Issued share capital and reserves




















Share capital






1,065


1,065


1,065




Share premium






11,603


11,603


11,603




Other reserves






(606)


(668)


(643)




Retained earnings






3,738


3,100


4,177












_______


_______


_______




TOTAL EQUITY






15,800


15,100


16,202



 




 
Group statement of cash flows







6 months to
30 June 2020


6 months to
30 June 2019


Year to
December 2019








$'000


$'000


$'000








(unaudited)


(unaudited)


(audited)




Cash flows from operating activities
















Profit/(loss) for the period


(439)


(258)


814




Adjustments for:
















Income tax expense/(credit) recognised in profit or loss


45


(4)


194




Finance income


(37)


(20)


(54)




Finance costs


87


85


160




Depreciation of tangible non-current assets


135


132


188




Amortisation of intangible non-current assets


993


809


1,726




Fair value adjustment on contingent consideration


(149)


-


(236)




Share-based payments


27


49


52




Foreign exchange (gains)/losses


6


(6)


(8)








_______


_______


_______




Operating cash flows before movements in working capital


668


787


2,836




(Increase)/decrease in trade and other receivables


416


(402)


(1,509)




(Increase)/decrease in contract assets


122


(38)


(428)




Increase/(decrease) in trade and other payables


386


(230)


103




Increase in contract liabilities and other deferred income


(413)


220


701








_______


_______


_______




Cash generated from operating activities


1,179


337


1,703






















Income tax paid


(110)


(96)


(334)








_______


_______


_______




Net cash generated from operating activities


1,069


241


1,369






















Cash flows from investing activities
















Development of intangible assets


(1,210)


(1,111)


(2,102)




Purchase of intangible assets


(3)


(12)


(35)




Acquisition of property, plant and equipment


(791)


(78)


(256)








_______


_______


_______




Net cash used in investing activities


(2,004)


(1,201)


(2,393)






















Cash flows from financing activities
















Proceeds from borrowings


1,117


276


317




Repayment of borrowings


(301)


(300)


(313)




Repayments of principal on lease liabilities


(93)


(88)


(171)




Finance income


37


20


54




Finance costs


(61)


(40)


(93)




Less interest accrued but not paid


16


1


-




Interest expense on lease liabilities


(8)


(22)


(40)








_______


_______


_______




Net cash generated by/(used in) financing activities


707


(153)


(246)






















Net increase/(decrease) in cash and cash equivalents


(228)


(1,113)


(1,270)




Net foreign exchange differences


(43)


7


(20)




Cash and cash equivalents at beginning of period


934


2,224


2,224








_______


_______


_______




Cash and cash equivalents at end of period


663


1,118


934






















Comprising:
















Cash at bank and in hand


749


1,118


1,101




Overdraft


(86)


-


(167)








_______


_______


_______








663


1,118


934



 
 
 
Group statement of changes in equity







Share capital


Share premium


Exchange reserve


Merger reserve


Share-based payments reserve


Retained profits






Total








$'000


$'000


$'000


$'000


$'000


$'000






$'000




Balance at 31 December 2018 as previously reported


1,065


11,603


(193)


(527)


-


3,414






15,362




Effect of change of accounting policy (IFRS 16)


-


-


-


-


-


(51)






(51)








_____


_____


_____


_____


_____


_____






_____




Balance at 31 December 2018 as restated


1,065


11,603


(193)


(527)


-


3,363






15,311




(Loss) after taxation for the period


-


-


-


-


- 


(258)






(258)




Share-based payments


-


-


-


-


49


-






49




Other comprehensive income:




































Exchange differences


-


-


4


-


-


-






4








_____


_____


_____


_____


_____


_____






_____




Balance at 30 June 2019


1,065


11,603


(189)


(527)


49


3,105






15,106




Profit after taxation for the period


-


-


-


-


- 


1,072






1,072




Share-based payments


-


-


-


-


51


-






51




Other comprehensive income:




































Exchange differences


-


-


(27)


-


-


-






(27)








_____


_____


_____


_____


_____


_____






_____




Balance at 31 December 2019


1,065


11,603


(216)


(527)


100


4,177






16,202




Profit after taxation for the period


-


-


-


-


- 


(439)






(439)




Share-based payments


-


-


-


-


50  


-






50




Other comprehensive income:




































Exchange differences


-


-


(13)


-


-


-






(13)








_____


_____


_____


_____


_____


_____






_____




Balance at 30 June 2020


1,065


11,603


(229)


(527)


150


3,738






15,800



 




Notes to the Group financial statements
 
 
1              Basis of preparation
 
The Group has prepared its interim financial statements for the 6 months ended 30 June 2020 (the "interim results") in accordance with the recognition and measurement principles of International Financial Reporting Standards ("IFRS") as adopted by the European Union and also in accordance with the recognition and measurement principles of IFRS issued by the International Accounting Standards Board, but do not include all the disclosures that would otherwise be required. They have been prepared under the historical cost convention as modified to include the revaluation of certain non-current assets. The accounting policies adopted in the interim financial statements are consistent with those adopted in the Group's Annual Report and Financial Statements for the year ended 31 December 2019 and those which will be adopted in the preparation of the annual report for the year ending 31 December 2020.
 
As permitted, the interim results have been prepared in accordance with the AIM Rules of the London Stock Exchange and not in accordance with IAS34 Interim Financial Reporting. They do not constitute full statutory accounts within the meaning of section 434 of the Companies Act 2006 and are unaudited.
 
Going concern
 
The Directors have considered trading and cash flow forecasts prepared for the Group, and based on these, and confirmed banking facilities, are satisfied that the Group will continue to be able to meet its liabilities as they fall due for at least one year from the date of these results. On this basis, they consider it appropriate to have adopted the going concern basis in the preparation of the interim results, which were approved by the Board of Directors on 28 September 2020.
 
 
Comparative financial information
 
The comparative financial information presented herein for the year ended 31 December 2019 does not constitute full statutory accounts for that period. Statutory accounts for the year ended 31 December 2019 have been filed with the Registrar of Companies. These statutory accounts carried an unqualified Auditor's Report, did not draw attention to any matters by way of emphasis and did not contain a statement under Section 498(2) or 498(3) of the Companies Act 2006.
 
 




 
2              Segmental analysis
 
Revenue by type







6 months to
30 June 2020


6 months to
30 June 2019


Year to
31 December 2019








$'000


$'000


$'000








(unaudited)


(unaudited)


(audited)






















Repeat software sales and services


1,148


1,316


3,114




Maintenance and support


719


645


1,399








_______


_______


_______




Total repeat revenues


1,867


1,961


4,513




Software - new licenses


424


498


1,887




Consulting


-


250


258




Resale of hardware


-


5


9








_______


_______


_______








2,291


2,714


6,667



 
Revenue by geography
 
The Group recognises revenue in seven geographical regions based on the location of customers, as set out in the following table:







6 months to
30 June 2020


6 months to
30 June 2019


Year to
31 December 2019








$'000


$'000


$'000








(unaudited)


(unaudited)


(audited)






















Caribbean


60


243


133




Central Asia


32


206


256




Eastern Europe


74


56


91




North Africa


42


95


135




South Asia


923


1,088


1,791




South East Asia


1,160


561


4,181




Sub-Saharan Africa


-


465


80








_______


_______


_______








2,291


2,714


6,667



 
 
3              Non-GAAP profit measures and exceptional items
 
Reconciliation of operating profit to earnings before interest, taxation, depreciation and amortisation ("EBITDA"):







6 months to
30 June 2020


6 months to
30 June 2019


Year to
31 December 2019








$'000


$'000


$'000








(unaudited)


(unaudited)


(audited)




Operating profit/(loss)


(334)


(197)


1,118




Adjusted for:
















 - amortisation and depreciation


1,091


940


1,915




 - revenue recognised as interest under IFRS 15


22


14


43




Exceptional items:
















- gain on adjustment of deferred consideration liability


(149)


-


(236)




Share-based payments


27


49


52








_______


_______


_______




Adjusted EBITDA


657


806


2,892



 
The criteria for adjusting operating income or expenses in the calculation of adjusted EBITDA are that they are material and either (i) arise from an irregular and significant event or (ii) are such that the income/cost is recognised in a pattern that is unrelated to the resulting operational performance. Materiality is defined as an amount which, to a user, would influence decision-making based on, and understandability of, the financial statements.
 
Exceptional items are treated as exceptional by reason of their nature and are excluded from the calculation of adjusted EBITDA (and adjusted earnings per share below) to allow a better understanding of comparable year-on-year trading and thereby an assessment of the underlying trends in the Group's financial performance. These measures also provide consistency with the Group's internal management reporting.
 
Adjustment for share-based payment expense is made because, once the cost has been calculated for a given grant of options, the Directors cannot influence the share-based payment charge incurred in subsequent years relating to that grant; also the value of the share option to the employee differs considerably in value and timing from the actual cash cost to the Group.
 
Elements of depreciation on right-to-use assets recognised under IFRS 16 and share-based payment expense are deemed to be directly attributable overheads for the purposes of capitalising relevant expenditure on developing intangible assets (see Note 18). The figures above are shown net of amounts so capitalised.
 
 
4              Finance income







6 months to
30 June 2020


6 months to
30 June 2019


Year to
31 December 2019








$'000


$'000


$'000








(unaudited)


(unaudited)


(audited)




Interest receivable on interest-bearing deposits


15


6


11




Notional interest accruing on contracts with a significant financing component


22


14


43








_______


_______


_______




Total finance income


37


20


54



 
 
5              Finance expense
 







6 months to
30 June 2020


6 months to
30 June 2019


Year to
31 December 2019








$'000


$'000


$'000








(unaudited)


(unaudited)


(audited)






















Interest and finance charges paid or payable on borrowings


79


40


96




Interest on lease liabilities under IFRS 16


15


22


40




Less: amounts capitalised as intangible assets


(7)


-


(19)




Acquisition-related financing expense - unwinding of discount on financial liabilities


19


23


47








_______


_______


_______




Total finance expense


106


85


164



 
 




 
6              Earnings per share
 
Earnings per share - reported ("EPS")
 
The calculation of the basic and diluted EPS is based on the following data:
 







6 months to
30 June 2020


6 months to
30 June 2019


Year to
31 December 2019








$'000


$'000


$'000




Earnings
















Earnings for the purposes of basic and diluted earnings per share being net profit attributable to equity holders of the parent


(439)


(258)


814






















Number of shares
















Weighted average number of ordinary shares for the purposes of basic and diluted earnings per share


32,532,431


32,532,431


32,532,431



 
The weighted average number of shares and the loss for the year for the purposes of calculating the fully diluted earnings per share are the same as for the basic loss per share calculation. This is because the outstanding share options would have the effect of reducing the loss per ordinary share and would therefore not be dilutive under IAS33.
 
Adjusted earnings per share
 
Adjusted EPS is calculated as follows:







6 months to
30 June 2020


6 months to
30 June 2019


Year to
31 December 2019








$'000


$'000


$'000




Earnings attributable to owners of the Parent


(439)


(258)


814




Adjusting items:
















- amortisation of acquisition-related intangibles


343


349


686




- finance charge on liabilities relating to
 contingent consideration


19


23


47




 - exceptional items


(149)


-


(236)




- share-based payments


27


49


52




- prior year adjustments to tax charge


-


-


(7)








_______


_______


_______




Adjusted earnings attributable to owners of the Parent


(199)


163


1,356






















Adjusted earnings per share attributable to shareholders (basic)


(0.6)¢


0.5¢


4.2¢






















Weighted number of ordinary shares in issue


32,532,431


32,532,431


32,532,431




Effect of dilutive potential ordinary shares:
















 - in-the-money share options


-


6,702


-








________


________


________




Weighted average number of ordinary shares for the purposes of diluted earnings per share


32,532,431


32,539,133


32,532,431






















Adjusted earnings per share attributable to shareholders (diluted)


(0.6)¢


0.5¢


4.2¢



 
The criteria for inclusion of adjusting items in the calculation of adjusted EPS are the same as those relating to the calculation of adjusted EBITDA as set out in Note 3. Additionally, finance expense on liabilities relating to contingent consideration are non-cash costs reflecting the time value of money in arriving at the fair value of such liabilities and the effluxion of time over the period for which they are outstanding; and amortisation of acquisition-related intangibles relates to the amortisation of intangible assets in respect of customer relationships and brands which are recognised on a business combination and are non-cash in nature.
 
The Group has one category of potentially dilutive ordinary share, being those share options granted to employees where the exercise price (plus the remaining expected charge to profit under IFRS 2) is less than the average price of the Company's ordinary shares during the period. The weighted average number of shares for the calculation of diluted earnings per share is computed using the treasury share method.
 
 
7              Intangible assets
 
Intangible assets comprise capitalised development costs, acquired software, customer relationships and goodwill.
 







Development costs


Third party
software


Patents


Customer relationships


Goodwill


Total








$'000


$'000


$'000


$'000


$'000


$'000




Cost




























At 1 January 2020


6,391


108


23


6,862


470


13,854




Additions


1,232


3


-


-


-


1,235




Foreign exchange


-


(2)


-


-


-


(2)








_______


_______


_______


_______


_______


_______




At 30 June 2020


7,623


109


23


6,862


470


15,087


































Amortisation or impairment




























At 1 January 2020


(1,957)


(34)


-


(972)


-


(2,963)




Charge for the period


(640)


(10)


-


(343)


-


(993)




Foreign exchange


-


1






-


-


1








_______


_______


_______


_______


_______


_______




At 30 June 2020


(2,597)


(43)


-


(1,315)


-


(3,955)


































Net carrying amount




























At 30 June 2020


5,026


66


23


5,547


470


11,132


































At 1 January 2020


4,434


74


23


5,890


470


10,891



 
 




 
8              Tangible assets
 







Leasehold improvements


Computer equipment


Office equipment


Vehicles
 


Total








$'000


$'000


$'000


$'000


$'000




Cost
























At 1 January 2020


109


197


59


312


677




Additions


2


788


1


-


791




Foreign exchange differences


(4)


(14)


(4)


(17)


(39)








_______


_______


_______


_______


_______




At 30 June 2020


107


971


56


295


1,429






























Depreciation
























At 1 January 2020


(7)


(87)


(9)


(59)


(162)




Charge for the year


(6)


(26)


(6)


(18)


(56)




Foreign exchange differences


-


4


1


4


9








_______


_______


_______


_______


_______




At 30 June 2020


(13)


(109)


(14)


(73)


(209)






























Net carrying amount
























At 30 June 2020


94


862


42


222


1,220






























At 1 January 2020


102


110


50


253


515



 
 
9              Right-of-use assets
 
Right-of-use assets comprise leases over office buildings and vehicles
 







Office
buildings


Vehicles


Total








$'000


$'000


$'000




Cost
















At 1 January 2020


690


31


721




Additions in the period


-


-


-




Effects of foreign exchange movements


(44)


(2)


(46)








_______


_______


_______




At 30 June 2020


646


29


675






















Depreciation
















At 1 January 2020


(368)


(14)


(382)




Charge for the period


(71)


(7)


(78)




Effects of foreign exchange movements


24


1


25








_______


_______


_______




At 30 June 2020


(415)


(20)


(435)






















Net carrying amount
















At 30 June 2020


231


9


240




At 1 January 2020


322


17


339



 
 




 
10           Loans and borrowings







As at
30 June 2020


As at
30 June 2019


As at 31 December 2019








$'000


$'000


$'000




Non-current liabilities
















Secured term loans


1,145


359


362








_______


_______


_______








1,145


359


362




Current liabilities
















Current portion of term loans


62


73


79




Unsecured borrowings


86


-


167








_______


_______


_______








148


73


246






















Total loans and borrowings


1,293


432


608



 
 
11           Lease liabilities
 
Lease liabilities comprise liabilities arising from the committed and expected payments on leases over office buildings and vehicles .
 



Amounts due in less than one year


Office
buildings


Vehicles


Total








$'000


$'000


$'000




At 1 January 2020


193


12


205




Leases taken on in the period


-


-


-




Repayments of principal


(87)


(6)


(93)




Transfer from long-term to short-term


73


1


74




Effects of foreign exchange movements


(14)


(1)


(15)








_______


_______


_______




At 30 June 2020


165


6


171



 
 



Amounts due in more than one year


Office
buildings


Vehicles


Total








$'000


$'000


$'000




At 1 January 2020


186


1


187




Leases taken on in the period


-


-


-




Transfer from long-term to short-term


(73)


(1)


(74)




Effects of foreign exchange movements


(9)


-


(9)








_______


_______


_______




At 30 June 2020


104


-


104



 
 
 




 
12           Trade and other payables







As at
30 June 2020


As at
30 June 2019


As at 31 December 2019








$'000


$'000


$'000




Due within a year
















Trade payables


40


12


82




Other payables and provisions


852


344


441








_______


_______


_______




Total trade and other payables


892


356


523



 
Other payables includes amounts due in respect of the capital expenditure referenced in Note 8, which was paid in July as per the agreed payment milestones. Provisions reflect payment holidays granted (principally in the Group's Indian subsidiary) in respect of certain duties and taxes.
 
 
13           Other financial liabilities
 
Other financial liabilities comprise the fair value of payments due in respect of earnout payments resulting from the Danateq acquisition.







As at
30 June 2020


As at
30 June 2019


As at 31 December 2019








$'000


$'000


$'000




Contingent consideration on the acquisition of Danateq assets
















- potentially due within one year


801


-


948




- potentially after one year


-


1,187


-








_______


_______


_______




Total other financial liabilities


801


1,187


948



 
The amount owed to the vendors of Danateq had been agreed at $1m gross under the terms of the SPA. The net figure (paid earlier this month) was some $193,000 lower, being reduced by sums relating either to amounts paid by customers in advance to the former Danateq business but due to Pelatro, or amounts deductible under the terms of the SPA due to differences in outturn in disclosure items. The difference between the reporting date figure and the net payout is the imputed discount due to the time value of money.
 
 
14           Post balance sheet events
 
There have been no events subsequent to the reporting date which would have a material impact on these interim financial results.
 
 
 
 [END]

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