REG - Smartspace Software - Half-year Report
11/10/2022 07:00
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RNS Number : 4048C Smartspace Software PLC 11 October 2022
11 October 2022
SmartSpace Software Plc
("SmartSpace", the "Group" or the "Company")
Interim Results for the Six Months Ended 31 July 2022
SmartSpace Software Plc, (AIM:SMRT) the leading provider of 'Integrated Space
Management Software' for smart buildings and commercial spaces 'visitor
reception, desks and meeting rooms', announces its unaudited Interim Results
for the six months ended 31 July 2022. This follows on from a recent Trading
Update, which was announced on 16 August 2022.
Financial Highlights:
· Total Group revenues up 45% to £3.67 million (31 July 2021:
£2.52 million)
· Strong growth in Annual Recurring Revenue* ("ARR") to £5.17m at
31 July 2022 up 32% year-on-year on a constant currency basis (31 July 2021:
£3.90m)
· Recurring revenues up 49% to £2.37m (31 July 2021: £1.59m)
· Improved Adjusted LBITDA** of £0.50 million (31 July 2021:
£1.29 million) generated from growth in high margin recurring revenue as
overheads remains constant
· Loss per share from continuing operations of 3.87p (31 July 2021:
Loss per share 5.49p) and total loss per share of 3.77p (31 July 2021: Loss
per share 5.49p)
· Reduction in cash consumption in the period with cash used in
continuing operations amounting to £0.22m (31 July 2021: £1.33m) as trading
losses reduce and a net positive movement in working capital occurs
· Cash balance at 31 July 2022 of £2.32 million (31 July 2021:
£3.37 million) and a net cash position of £1.97 million (31 July 2021:
£2.97 million)
· Cash balance at 30 September 2022 of £1.92m
· Group ARR* £5.65m at 30 September 2022
Operational Highlights including post review period
SwipedOn
· SwipedOn ARR* increased by 35% year-on-year to £4.50m at 31 July
2022 (31 July 2021: £3.33m) with this growth continuing during August and
September to £4.96m at 30 September
· Monthly Average Revenue Per User* ("ARPU") increased by 44% year
on year to £84 at 31 July 2022 (31 July 2021: £59) and has advanced further
to £91 at 30 September
· SwipedOn locations increased to 7,506 at 31 July 2022 (31 July
2021: 7,003) and further to 8,129 at 30 September with the inclusion of 550
Thermo Fisher Scientific locations
· Since our February 2022 contact win announcement, Thermo Fisher
Scientific have now engaged SwipedOn until Q3 2023 with a contract extension
to assist with their Covid-19 testing program for schools
· SwipedOn's largest Desk customer is now managing over 2,300 desks
from 16 locations in APAC region and is intending to deploy into their US
offices
Space Connect
· ARR* up 35% year on year to £0.55m at 31 July 2022 (31 July
2021: £0.41m) increasing to £0.58m at 30 September
· At 31 July 2022, Space Connect had 73 customers (31 July 2021:
41)
· Sales of Evoko Naso continue to show growth with billings ahead
of management expectations for the six month period and in subsequent months.
Anders & Kern (A&K)
· A&K revenue for the 6 months to 31 July 2022 increased by 36%
to £1.30m (31 July 2021: £0.96m) as Covid-19 restrictions are no longer
impacting sales
Outlook
· Trading is in line with expectations for FY23
· Continuing to deliver growth in ARR to transition business to
cashflow breakeven towards the end of FY23
* For customers invoiced in currencies other than pounds sterling ARR and ARPU
is calculated by translating charges at the applicable 31 July 2022 exchange
rate (with the exception of the 30 September 2022 ARR and ARPU which is set at
exchange rates on that date). Comparative period ARR is provided on a constant
currency basis by retranslating foreign currency amounts at the 31 July 2022
exchange rate.
** LBITDA is the loss for the period from continuing operations before net
finance costs, tax, depreciation, amortisation, reorganisation and
transactional items, impairment charges and share based payment charge
Commenting on outlook, Frank Beechinor, CEO of SmartSpace, said:
"As indicated in our recent Trading Update, our primary objective is to build
a high growth SaaS business with strong recurring revenues. The results
outlined above for SwipedOn and Space Connect illustrate that these key
objectives are being achieved. We continue to see good momentum in SwipedOn
and it is great to see the momentum return in Space Connect after a slow start
to the year. It is encouraging to see a significant uplift in Evoko Naso sales
which have continued to grow in recent months. Our priorities remain focused
in continuing to deliver strong growth in ARR, growing our new international
geographies and becoming cashflow breakeven towards the end of FY23, to
maximise value for shareholders over the coming years."
A copy of these interim results together with a results presentation with
further information on the Company will be posted on the Company's website at:
www.smartspaceplc.com (http://www.smartspaceplc.com) .
Investor Meet Company Presentation
Frank Beechinor, CEO, Kris Shaw, CFO and Hadleigh Ford, MD of SwipedOn, will
provide a live presentation on the interim results via the 'Investor Meet
Company' ("IMC") platform at 12.00 midday (BST) today.
Investors can sign up for free via:
https://www.investormeetcompany.com/smartspace-software-plc/register-investor
(https://www.investormeetcompany.com/smartspace-software-plc/register-investor)
Questions can be submitted at any time during the live presentation.
Those who have already registered and requested to meet SmartSpace will be
automatically invited.
Enquiries:
SmartSpace Plc via Lisa Baderoon
Frank Beechinor (CEO)
Kris Shaw (CFO)
Lisa Baderoon (Head of Investor Relations) +44 (0) 7721 413 496
lbaderoon@smartspaceplc.com (mailto:lbaderoon@smartspaceplc.com)
Canaccord Genuity (NOMAD and Broker) +44 (0) 20 7523 8000
Adam James
Gerel Bastin
Introduction
As a Group we remain committed to growing SaaS revenues to develop a
profitable and cash generative business. We have made progress on this core
strategy with 45% growth in revenue and a significant reduction in LBITDA and
cash consumption. Group ARR grew by 32% year on year on a constant currency
basis, to £5.17m. Our focus remains on growing revenue from existing
customers through account expansion and upselling, as well as finding valuable
multi-location new customers both in our existing core markets, and by
targeting new international geographies.
Software development during the period has been geared towards creating
revenue generating opportunities. Since the beginning of the year, we have
completed development of a freemium version of SwipedOn, which we are
trialling in the UK, with the aim of allowing us to establish a new base of
prospective customers. The recent launch of the Android version and
introduction of the full multi-region/language capability of SwipedOn means we
can now accelerate our sales activities, selling into new geographic regions
and markets. One of our other software development priorities which we have
made good progress with is the transition to a single platform. It is
anticipated that the new integrated platform will be released in 2023.
We have developed a new partnership with Yealink, a major international
manufacturer of meeting room and video conferencing hardware. A joint
marketing campaign with special bundle pricing has been launched with Yealink
in the UK, targeting their major partners.
Group Key performance indicators
Metric 30 September 2022 31 July 2022 31 January 2022 31 July 2021
ARR (£m) 5.65 5.17 4.64 3.90
Monthly average revenue per user (£) 99 91 78 65
Locations 8,129 7,506 7,076 7,003
Operational update
SwipedOn
SwipedOn has continued to see good growth in revenue and other key performance
metrics, allowing us to report our first EBITDA profit for SwipedOn of £0.36m
for the six month period. Our software is now well suited to multi-location
customers needing an enterprise level solution, that is simple to implement,
on a self-serve basis, and represents good value for money. This has allowed
us to expand our higher value accounts, as demonstrated by Thermo Fisher, who
have further extended their contract to a full school year running until
October 2023.
SwipedOn's largest Desk customer was signed during the period with the order
coming from an Australian- headquartered consulting business with 200 offices
and 10,000 employees worldwide. They are now using our software to manage over
2,300 desks from 16 locations in the APAC region and are intending to deploy
into their US offices.
During the period we launched a fully localised Korean version of SwipedOn.
There was much to learn about entry into non-English speaking markets, where
the dominant search engine is not Google and with non-Roman characters. Whilst
challenging, important lessons have been learnt, and we have been able to
successfully complete this phase whilst minimising costs. We intend to apply
these learnings to other new geographies, in particular in the Far East.
SwipedOn has recently achieved two important information security
accreditations, ISO 27001 and SOC 2. These certifications demonstrate our
commitment to keeping data secure and operating in accordance with
internationally accepted standards.
Space Connect
Space Connect began the year slower than expected with a limited number of new
customers joining. This was a reflection of the switch in customer needs from
Covid-19 risk control to work space optimisation, resulting in longer
decision-making cycles. Despite the slow start to H1 2023, we have seen
increased sales momentum, resulting in stronger sales performance in May, June
and July, which has continued into August and September. We have also seen
some customers who joined us during the pandemic where Covid-19 mitigation was
the priority, changing their requirements and therefore resulting in some
expansion, contraction, and churn. This meant that the ARR for Space Connect
did not grow as materially during the period as previously announced. However,
the focus has very much shifted to space optimisation and, whilst the sales
cycles are more protracted, it tends to result in 'sticky' customers with a
long-term commitment to using our technology. We continue to see good interest
from our key UK partners, including Softcat, where we have become an 'Elite'
vendor, making Space Connect the only workplace software solution provider
offered to the Softcat sales team.
During the half year our room panel partner, Evoko, launched a new pricing
model and showcased Naso at key trade shows. With these key marketing
initiatives successfully implemented, we have seen an acceleration of
sales momentum of Naso, which has resulted in increased cash generation in
Space Connect since May 2022 and helps underpin anticipated revenues
recognised from this division going forwards. Management expects this
momentum to continue over the coming months.
Anders and Kern (A&K)
With Covid-19 no longer materially impacting our customers, A&K has been
able to close a number of larger sales which had stalled in the pipeline
during the pandemic. This has allowed A&K to return to pre Covid-19
revenue levels and we anticipate this will continue into the second half of
the year.
Financial review
Group LBITDA has reduced to £0.50m (31 July 2021: LBITDA £1.29m) through 49%
growth in high margin recurring revenue, 39% growth in lower margin hardware
sales, and a 1% reduction in administrative costs. In line with reduced
losses, cash consumed by continuing activities reduced to £0.22m (31 July
2021: £1.33m consumed).
The breakdown of revenue by type is:
Six months to 31 July 2022 Six months to 31 July 2021 Year ended 31 January 2022
Unaudited Unaudited Audited
£000 £000 £000
Recurring revenue
- SwipedOn 2,029 1,383 2,916
- Space Connect 274 135 373
- Anders & Kern 65 68 127
Total recurring revenue 2,368 1,586 3,416
Hardware revenue
- SwipedOn 26 5 19
- Space Connect - - -
- Anders & Kern 1,197 824 1,461
Total hardware revenue 1,223 829 1,480
Other revenue 81 109 244
Total revenue 3,672 2,524 5,140
SwipedOn revenue has increased due to higher monthly Average Revenue Per User
("ARPU"). This has come from increased proportion of customers on our Business
and Enterprise level plans which contribute more locations per user, together
with higher subscription fees as a result of the price increase we started to
implement last year. The significant customer wins announced including Thermo
Fisher Scientific and Gategroup, together with the new SwipedOn Desk offering,
are further strengthening revenue growth.
Space Connect revenue has increased against the comparative period due to
higher customer numbers. The effect of increased sales of Naso have yet to
make a significant impact on revenue, as this occurred towards the end of the
reporting period and is largely recognised over time.
A&K made good progress in returning to pre-pandemic revenue levels by
closing a number of larger sales. Revenue for the period was 36% above the
comparative period in 2021.
Group administrative expenses fell by 1% to £3.59m (31 July 2021: £3.63m)
due to a reduction in overall staff costs. Whilst inflation has increased
individual staff costs, this has been offset by a small number of staff
vacancies, which were only filled towards the end of the period. With a full
compliment of staff going into the second half of the year, administrative
costs are expected to rise reflecting the impact of inflation, albeit to be
offset by anticipated revenue growth.
A profit of £29,000 relating to recently settled outstanding contingent
obligations from the disposals of Smartspace Global in FY21, and Comunica
Holdings in FY19, was recognised during the period.
Loss per share from continuing operations improved to 3.87p (31 July 2022:
Loss per share 5.49p).
Cash flow
Cash used in continuing operations amounted to £0.22m (31 July 2022:
£1.33m). The reduction in cash consumption occurred through reduced trading
losses together with a net positive movement in working capital primarily
generated by increased deferred revenue.
Cash outflows from financing activities of £78K (31 July 2022: £34K) relate
to the repayment of lease liabilities, mortgage repayments, and a repayment
interest free Covid-19 loan, provided by the New Zealand government.
The above cash flows resulted in a cash balance at the period end of £2.32
million (31 July 2021: £3.37 million) and a net cash position of £1.97
million (31 July 2021: £2.97 million).
Outlook
With the pandemic mostly behind us, we are seeing a change in sentiment
towards efficiency and work place optimisation. This shift is beginning to
contribute to sales growth, with growing interest in both Space Connect and
SwipedOn. Growth in Evoko Naso receipts offers further promise of revenue
growth in the second half of the year and beyond. While there are still
challenges and uncertainties in the current environment, not least from cost
inflation, we remain confident of achieving our objectives of becoming a
profitable high growth SaaS business. The Board have plans in place to
transition SmartSpace through to cash generation and believes the Group has
sufficient liquidity to complete this transition. SmartSpace is therefore well
positioned to meet targets for this financial year and remains optimistic
about growth prospects.
People
On behalf of the Board, I would like to thank all my colleagues for their hard
work and efforts in delivering the successes achieved in the first half of the
year.
Frank Beechinor
Chief Executive
10 October 2022
Consolidated Income Statement
For the six months ended 31 July 2022
Six months to 31 July 2022 Six months to 31 July 2021 Year ended 31 January 2022
Unaudited Unaudited Audited
£000 £000 £000
Continuing operations
Revenue from contracts with customers 3,672 2,524 5,140
Costs of sale of goods (909) (564) (1,068)
Cost of providing services (277) (165) (427)
Gross profit 2,486 1,795 3,645
Administrative expenses (3,591) (3,628) (7,320)
Net impairment losses on financial assets 1 (7) (14)
Other income 3 17 36
Operating loss (1,101) (1,823) (3,653)
Adjusted LBITDA * (502) (1,285) (2,493)
Reorganisation and transactional items (27) (65) (192)
Depreciation (53) (55) (114)
Amortisation (320) (259) (552)
Impairment of financial assets 1 (7) (14)
Share based payments charge (200) (152) (288)
Operating loss (1,101) (1,823) (3,653)
Finance income - - 1
Finance costs (9) (13) (26)
Loss before tax (1,110) (1,836) (3,678)
Taxation (10) 266 1,114
Loss for the period after tax (1,120) (1,570) (2,564)
Profit for the period from discontinued operations 29 - -
Loss for the period (1,091) (1,570) (2,564)
Other comprehensive income
Revaluation of property, plant and equipment - - 73
Exchange differences on translation of foreign operations 262 (392) (339)
Total other comprehensive income / (loss) 262 (392) (266)
Total comprehensive loss (829) (1,962) (2,830)
Basic loss per share
Continuing operations (3.87p) (5.49p) (8.91p)
Discontinued operations 0.10p 0.00p 0.00p
Total (3.77p) (5.49p) (8.91p)
Diluted loss per share
Continuing operations (3.87p) (5.49p) (8.91p)
Discontinued operations 0.10p 0.00p 0.00p
Total (3.77p) (5.49p) (8.91p)
* Loss for the period from continuing operations before net finance costs,
tax, depreciation, amortisation, reorganisation and transactional items,
impairment charges and share based payment charge
Consolidated Balance Sheet
As at 31 July 2022
31 July 31 July 31 January
2022 2021 2022
Unaudited Unaudited Audited
£000 £000 £000
ASSETS
Non-current assets
Property, plant and equipment 743 681 751
Right-of-use assets 68 121 94
Intangible assets 10,806 10,619 10,619
Deferred tax assets 2,476 1,658 2,465
Total non-current assets 14,093 13,079 13,929
Current assets
Inventories 80 163 203
Contract assets 1 - 5
Trade and other receivables 592 887 399
Current tax receivable - 70 70
Prepayments 137 144 163
Cash and cash equivalents 2,315 3,370 2,758
Total current assets 3,125 4,634 3,598
Total assets 17,218 17,713 17,527
LIABILITIES
Non-current liabilities
Borrowings - 341 -
Lease liabilities 6 73 41
Total non-current liabilities 6 414 41
Current liabilities
Trade and other payables 1,337 1,149 1,379
Contract liabilities 2,116 1,368 1,774
Other tax liabilities 212 205 127
Borrowings 341 57 383
Lease liabilities 73 63 67
Total current liabilities 4,079 2,842 3,730
Total liabilities 4,085 3,256 3,771
NET ASSETS 13,133 14,457 13,756
EQUITY AND LIABILITIES
Capital and reserves attributable to equity shareholders
Share capital 2,894 2,894 2,894
Share premium 3,839 3,839 3,839
Other reserves (1,665) (2,426) (2,133)
Retained earnings 8,065 10,150 9,156
Total equity 13,133 14,457 13,756
Consolidated Statement of Cash Flows
For the six months ended 31 July 2022
Six months to 31 July 2022 Six months to 31 July 2021 Year ended 31 January 2022
Unaudited Unaudited Audited
£000 £000 £000
Cash from operating activities
Cash consumed by operations (217) (1,332) (1,614)
Interest received - - 1
Interest paid (9) (13) (26)
Income taxes refunded 68 30 28
Net cash outflow from operating activities (158) (1,315) (1,611)
Cash flows from investing activities
Payments for property, plant and equipment (12) (24) (36)
Payment of software development costs (212) (86) (340)
Proceeds from disposal of subsidiary - 327 327
Net cash from investing activities (224) 217 (49)
Cash flows from financing activities
Proceeds from issue of share capital - 10 10
Repayment of borrowings (44) (14) (27)
Payment of lease liabilities (34) (30) (62)
Net cashflow from financing activities (78) (34) (79)
Net change in cash and cash equivalents (460) (1,132) (1,739)
Cash and cash equivalents the beginning of the period
2,758 4,516 4,516
Effects of exchange rate changes on cash and cash equivalents 17 (14) (19)
Cash and cash equivalents at end of period 2,315 3,370 2,758
Consolidated Statement of Changes in Equity
For the six months ended 31 July 2022
Share Share premium Other reserves Retained earnings
Unaudited capital Total
£000 £000 £000 £000 £000
At 1 February 2022 2,894 3,839 (2,133) 9,156 13,756
Loss for the period - - - (1,091) (1,091)
Other comprehensive income for the period - - 262 - 262
Total comprehensive income for the period - - 262 (1,091) (829)
Share based payment- continuing operations - - 206 - 206
At 31 July 2022 2,894 3,839 (1,665) 8,065 13,133
Share Share premium Other Retained earnings
Unaudited capital reserves Total
£000 £000 £000 £000 £000
At 1 February 2021 2,826 3,830 (2,087) 11,701 16,270
Loss for the period - - - (1,570) (1,570)
Other comprehensive loss for the period - - (392) - (392)
Total comprehensive loss for the period - - (392) (1,570) (1,962)
Issue of ordinary shares in relation to deferred business combination 67 - (67) - -
consideration
Issue of ordinary shares to share option holders 1 9 (3) 3 10
Lapse of share options - - (16) 16 -
Share based payment charge - - 139 - 139
At 31 July 2021 2,894 3,839 (2,426) 10,150 14,457
Share Share premium Other Retained earnings
Audited capital reserves Total
£000 £000 £000 £000 £000
At 1 February 2021 2,826 3,830 (2,087) 11,701 16,270
Loss for the period - - - (2,564) (2,564)
Other comprehensive loss for the period - - (266) - (266)
Total comprehensive loss for the period - - (266) (2,564) (2,830)
Issue of ordinary shares as consideration for a business combination 67 - (67) - -
Issue of ordinary shares to option holders 1 9 (3) 3 10
Lapsed share options - - (16) 16 -
Translation difference on subsidiary share based payments - - (4) - (4)
Share-based payment expense - continuing operations - - 310 - 310
At 31 January 2022 2,894 3,839 (2,133) 9,156 13,756
Notes to the Interim Financial Statements
1. Basis of Preparation
The unaudited interim report for the six months to 31 July 2022 does not
constitute statutory accounts within the meaning of Section 435 of the
Companies Act 2006. The comparative figures for the year ended 31 January 2022
are extracted from the statutory financial statements which have been reported
on by the Company's auditor, RSM UK Audit LLP. The report of the auditor on
those accounts was unqualified and did not contain statements under Section
498 to 502 of the Companies Act 2006.
The consolidated interim financial information has been prepared in accordance
with International Financial Reporting Standards and on the historical cost
basis and using generally recognised accounting principles consistent with
those used in the annual report and accounts for the year ended 31 January
2022 and expected to be used for the year ending 31 January 2023.
This interim report for the six months to 31 July 2022, which complies with
IAS 34 'Interim Financial Reporting', was approved by the Board on 10 October
2022.
Hard copies of the interim report are available from the Company at its
registered office at Norderstedt House, James Carter Road, Mildenhall, Bury
St. Edmunds, England, IP28 7RQ. This interim report will also be made
available on the Company's website, www.smartspaceplc.com.
2. Significant Accounting Policies
The accounting policies and methods of computation applied in this interim
report are consistent with those of the annual financial statements for the
year ended 31 January 2022, as described in those annual financial statements.
3. Segmental Analysis
Six months ended 31 July 2022
Space Connect Central
Unaudited SwipedOn Anders & Kern costs Total
Unaudited Unaudited Unaudited Unaudited
£000 £000 £000 £000 £000
Revenue from contracts with customers 305 2,063 1,304 - 3,672
Costs of sale of goods - (21) (888) - (909)
Cost of providing services (2) (236) (39) - (277)
Gross profit 303 1,806 377 - 2,486
Administrative expenses (938) (1,563) (404) (686) (3,591)
Net impairment losses on financial and contract assets - 1 - - 1
Other income - 3 - - 3
Operating profit / (loss) (635) 247 (27) (686) (1,101)
Adjusted EBITDA/(LBITDA)* (360) 364 (5) (501) (502)
Reorganisation and transactional items included within administrative expenses (27) - - - (27)
Depreciation (3) (38) (10) (2) (53)
Amortisation (230) (80) (10) - (320)
Impairment of financial asset - 1 - - 1
Share based payments charge (15) - (2) (183) (200)
Operating profit / (loss) (635) 247 (27) (686) (1,101)
Finance income - - - - -
Finance costs - (3) (6) - (9)
Profit / (loss) profit before tax (635) 244 (33) (686) (1,110)
Six months ended 31 July 2021
Space Connect Central
Unaudited SwipedOn Anders & Kern costs Total
Unaudited Unaudited Unaudited Unaudited
£000 £000 £000 £000 £000
Revenue from contracts with customers 165 1,398 961 - 2,524
Costs of sale of goods (1) (3) (560) - (564)
Cost of providing services (15) (118) (32) - (165)
Gross profit 149 1,277 369 - 1,795
Administrative expenses (918) (1,550) (411) (749) (3,628)
Net impairment losses on financial and contract assets (3) (3) (1) - (7)
Other income - 17 - - 17
Operating loss (772) (259) (43) (749) (1,823)
Adjusted (LBITDA)/EBITDA* (552) (180) 34 (587) (1,285)
Reorganisation and transactional items included within administrative expenses - - (27) (38) (65)
Depreciation (4) (36) (11) (4) (55)
Amortisation (209) (40) (10) - (259)
Impairment of financial asset (3) (3) (1) - (7)
Share based payments charge (4) - (28) (120) (152)
Operating loss (772) (259) (43) (749) (1,823)
Finance income - - - - -
Finance costs - (5) (6) (2) (13)
Loss before tax (772) (264) (49) (751) (1,836)
Year ended 31 January 2022 SwipedOn
Space Connect Audited Anders & Kern Central
Audited Audited costs Total
Audited Audited
£000 £000 £000 £000 £000
Revenue from contracts with customers 458 2,953 1,729 - 5,140
Costs of sale of goods (1) (18) (1,049) - (1,068)
Cost of providing services (64) (284) (79) - (427)
Gross profit 393 2,651 601 - 3,645
Administrative expenses (1,927) (3,134) (874) (1,385) (7,320)
Net impairment losses on financial assets (3) (11) - - (14)
Other income - 36 - - 36
Operating loss (1,537) (458) (273) (1,385) (3,653)
Adjusted LBITDA * (1,082) (164) (118) (1,129) (2,493)
Reorganisation and transactional items included within administrative expenses - - (83) (109) (192)
Depreciation (6) (79) (22) (7) (114)
Amortisation (431) (100) (21) - (552)
Impairment of financial assets (3) (11) - - (14)
Share based payments charge (15) (104) (29) (140) (288)
Operating loss (1,537) (458) (273) (1,385) (3,653)
Finance income - 1 - - 1
Finance costs - (11) (12) (3) (26)
Loss before tax (1,537) (468) (285) (1,388) (3,678)
* Loss / profit for the period from continuing operations before net finance
costs, tax, depreciation, amortisation, reorganisation and transactional
items, impairment charges and share based payment charge
4. Revenue
Six months ended 31 July 2022
Space Connect SwipedOn Anders & Kern Total
Unaudited
Unaudited Unaudited Unaudited
£000 £000 £000 £000
Segment revenue 305 2,064 1,303 3,672
Timing of revenue:
At a point in time 31 35 1,238 1,304
Over time 274 2,029 65 2,368
Total 305 2,064 1,303 3,672
Six months ended 31 July 2021
Space Connect SwipedOn Anders & Kern Total
Unaudited
Unaudited Unaudited Unaudited
£000 £000 £000 £000
Segment revenue 165 1,398 961 2,524
Timing of revenue:
At a point in time 30 14 894 938
Over time 135 1,384 67 1,586
Total 165 1,398 961 2,524
Year ended 31 January 2022
Space Connect SwipedOn Anders & Kern Total
audited
Audited audited audited
£000 £000 £000 £000
Segment revenue 458 2,953 1,729 5,140
Timing of revenue:
At a point in time 84 37 1,599 1,720
Over time 374 2,916 130 3,420
Total 458 2,953 1,729 5,140
5. Equity
Movement in ordinary shares Shares issued Share capital Share premium Merger reserve Total
Number Price (p) £'000 £'000 £'000 £'000
At 31 January 2021 28,255,823 2,826 3,830 844 7,500
Issue of ordinary shares as consideration for a business combination 675,411 72.50 67 - 422 489
Issue of ordinary shares to option holders 10,000 101.25 1 9 - 10
At 31 July 2022 28,941,234 2,894 3,839 1,266 7,999
At 31 January 2022 28,941,234 2,894 3,839 1,266 7,999
At 31 July 2022 28,941,234 2,894 3,839 1,266 7,999
Movement in other reserves Merger reserve Reverse acquisition reserve Translation reserve Revaluation reserve Share option reserve Total other reserves
6 months ended 31 July 2022 Acquisition deferred consideration reserve
£'000 £'000 £'000 £'000 £'000 £'000 £'000
At 31 January 2022 1,266 (4,236) 133 - 73 631 (2,133)
Currency translation differences - - 262 - - 262
Total other comprehensive loss - - 262 - - - 262
Share based payments charge - - - - - 206 206
At 31 July 2022 1,266 (4,236) 395 - 73 837 (1,665)
Movement in other reserves Merger reserve Reverse acquisition reserve Translation reserve Revaluation reserve Share option reserve Total other reserves
6 months ended 31 July 2021 Acquisition deferred consideration reserve
£'000 £'000 £'000 £'000 £'000 £'000 £'000
At 31 January 2021 844 (4,236) 473 489 - 343 (2,087)
Currency translation differences - - (392) - - (392)
Total other comprehensive loss - - (392) - - - (392)
Settlement of acquisition deferred consideration 422 - - (489) - - (67)
Exercise of share options - - - - - (3) (3)
Lapse of share options - - - - - (15) (15)
Share based payments charge - - - - - 138 138
At 31 July 2021 1,266 (4,236) 81 - - 463 (2,426)
Movement in other reserves Merger reserve Reverse acquisition reserve Translation reserve Share option reserve Total other reserves
year ended 31 January 2022 Acquisition deferred
consideration reserve
Revaluation
reserve
£'000 £'000 £'000 £'000 £'000 £'000 £'000
At 31 January 2021 844 (4,236) 473 489 - 343 (2,087)
Revaluation of property - - - - 90 - 90
Deferred tax on property revaluation - - - - (17) - (17)
Currency translation differences - - (339) - - - (339)
Total other comprehensive loss - - (339) - 73 - (266)
Issue of ordinary shares as consideration for business combination 422 - - (489) - - (67)
Issue of ordinary shares to option holders - - - - - (3) (3)
Lapsed share options - - - - - (16) (16)
Exchange difference - - - - - (4) (4)
Share based payments charge - - - - - 310 310
At 31 January 2022 1,266 (4,236) 134 - 73 630 (2,133)
6. Loss per share
Six months Six months ended Year
ended 31 July 2021 ended 31 January 2022
31 July 2022 Unaudited Audited
Unaudited
£000 £000 £000
Loss attributable to ordinary equity holders of the Company
From continuing operations (1,120) (1,570) (2,564)
From discontinued operations 29 - -
Total (1,091) (1,570) (2,564)
Number Number Number
Weighted average number of shares used as denominator in calculating earnings 28,941,234 28,780,768
per share
28,606,062
Adjustment for calculation of diluted earnings per share - - -
Weighted average number of shares used as denominator in calculating diluted 28,941,234 28,606,062 28,780,768
earnings per share
Pence Pence Pence
Basic loss per share:
From continuing operations (3.87p) (5.49p) (8.91p)
From discontinued operations 0.10p 0.00p 0.00p
Total (3.77p) (5.49p) (8.91p)
Diluted loss per share:
From continuing operations (3.87p) (5.49p) (8.91p)
From discontinued operations 0.10p 0.00p 0.00p
Total (3.77p) (5.49p) (8.91p)
7. Cash flow information
Six months to 31 July 2022 Six months to 31 July 2021 Year ended 31 January 2022
Unaudited Unaudited Audited
£000 £000 £000
Loss before income tax from continuing operations (1,110) (1,835) (3,678)
Adjustments for:
Depreciation and amortisation 373 312 666
Non-cash employee benefit expense 200 152 288
Net gain on sale of non-current assets - 2 -
Finance costs - net 9 13 25
Credit losses (1) 7 14
Net exchange differences 22 (2) (9)
Change in operating assets and liabilities of continuing operations
Movement in trade and other receivables (112) (358) 114
Movement in contract assets 4 4 -
Movement in inventories 122 (73) (113)
Movement in prepayments 27 (33) (53)
Movement in trade creditors (31) 291 123
Movement in other creditors 16 (94) 276
Movement in deferred income 264 282 733
Cash generated from continuing operations (217) (1,332) (1,614)
Profit before income tax from discontinued operations 29 - -
Adjustments for:
Depreciation and amortisation - - -
Impairment of intangible assets - - -
Non-cash employee benefit expense - - -
Finance costs - net - - -
Credit losses - - -
Loss on sale of non-current assets - - -
Net exchange differences (2) - -
Loss on sale of discontinued operations - - -
Change in operating assets and liabilities of discontinued operations - - -
Movement in trade and other receivables (65) - -
Movement in contract assets - - -
Movement in prepayments - - -
Movement in trade creditors 38 - -
Movement in other creditors - - -
Movement in contract liabilities - - -
Cash generated from discontinued operations - - -
Cash used in operations (217) (1,332) (1,614)
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