REG - Smartspace Software - Interim Results
17/10/2023 07:00
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RNS Number : 3018Q Smartspace Software PLC 17 October 2023
17 October 2023
SmartSpace Software Plc
("SmartSpace", the "Group" or the "Company")
Interim Results for the Six Months Ended 31 July 2023
SmartSpace Software Plc, (AIM:SMRT) the leading provider of 'Integrated Space
Management Software' for smart buildings and commercial spaces, announces its
unaudited Interim Results for the six months ended 31 July 2023. This follows
on from a recent Trading Update announced on 8 August 2023.
Financial Highlights:
· Total Group revenues up 16% to £2.74 million (31 July 2022:
£2.37 million**)
· Recurring revenue comprises 99% of total revenue (31 July 2022:
97%**)
· Annual Recurring Revenue ("ARR") up 21% year-on-year to £5.8
million at 31 July 2023 on a constant currency basis (31 July 2022: £5.0
million or £4.8 million on constant currency basis*; 31 Jan 2023: £5.6
million or £5.4 million on constant currency basis*)
· Monthly Average Revenue per User ("ARPU") increased by 9% year on
year to £94* (31 July 2022: £90 or £86 on constant currency basis*)
· Improved Adjusted EBITDA loss*** of £0.06 million (31 July 2022:
£0.50 million**) as high margin recurring revenue continues to grow
· Disposal of Anders + Kern U.K. Limited ("A+K") during the
period, with net cash proceeds of approximately £1.1 million, contributing
to overall profit from discontinued operations of £0.27 million
· Loss per share from continuing operations of 2.43p (31 July 2022:
Loss per share 3.77p**) and profit per share from discontinued operations of
0.92p (31 July 2022: 0.00p**), resulting in overall Loss per share of 1.51p
(31 July 2022: Loss per share 3.77p**)
· Cash balance at 31 July 2023 of £2.21 million (31 July 2022:
gross cash £2.32 million) with no debt (net cash at 31 July 2022: £1.97
million)
· Group ARR* £6.0 million at 30 September 2023 and ARPU £96
· Cash balance at 30 September 2023 of £2.0 million
Operational Highlights including post review period
· 5,112 customers at 30 September 2023, with 872 new customers
added since the beginning of the financial year, contributing £0.8 million of
new ARR
· SwipedOn Spaces, which extends the platform to incorporate
bookings of desks, parking spaces, EV charging points, bike parking spaces and
other assets into a single fully integrated platform, launched and first
paying customers signed up
· Fully localised versions of SwipedOn released into Taiwan, China
and Germany
Outlook
· Our primary markets continue to demonstrate resilience, propelled
by fundamental shifts to hybrid working, together with an increasing emphasis
on productivity
· The Board remains confident that the business can continue to
deliver strong growth in ARR
· On a 31 January 2023 constant currency basis, the Board continues
to expect full year results to be in line with its expectations
* For customers invoiced in currencies other than pounds sterling, ARR and
ARPU is calculated by translating charges at the applicable 31 July 2023
exchange rate (with the exception of the 30 September 2023 ARR 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 2023
exchange rate. Relevant percentage comparisons are calculated against the
constant currency figures.
** Comparative figures have been restated on a like-for-like basis to exclude
A+K.
*** EBITDA is the earnings 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 highlighted in our recent Trading Update, our foremost goal is continuing
robust growth, particularly in recurring revenues. The positive results
outlined above, demonstrate that we are making progress toward these key
objectives. The introduction of our new 'Spaces' platform has opened up
opportunities for revenue expansion, as well as offering an increased number
of touchpoints into new customers as well as more effective upselling within
our existing customer base. As we progress into the upcoming years, this will
allow us to focus on driving substantial Annual Recurring Revenue growth, to
enhance shareholder value."
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 and Kris Shaw, CFO will provide a live presentation on
the interim results via the 'Investor Meet Company' ("IMC") platform on 18
October 2023 at 1200 noon (BST) .
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
Harry Rees
Introduction
Our focus remains to structure the business to capitalise on the significant
opportunities for integrated workplace software, empowering our customers to
maximise the efficiency of their workspaces. As businesses adapt to hybrid
work models in response to the evolving workplace, flexibility and efficiency
are paramount. Our software is fast to deploy with highly customisable
functionality, enhancing visitor and employee satisfaction, whilst optimising
office space utilisation, and reducing real estate costs. Overall, our
offering plays a pivotal role in creating a seamless hybrid work experience
from the carpark to reception, to the office floor and meeting rooms.
Our software development has been focussed on expanding the SwipedOn platform
to encompass the booking of desks, parking spaces, EV charging points, and
equipment. Referred to as 'Spaces', this enhancement represents the team's
most ambitious project thus far. This recent release signifies a
transformation for SwipedOn, moving us from a silo solution centred on
visitor management, into a comprehensive workplace management platform. With
this update, SwipedOn users now possess the capability to book a diverse range
of business assets, including desks, parking spaces, bicycle storage, lockers,
EV charging stations, and various equipment. The platform's adaptability
enables users to customise their unique requirements without any restrictions
on the type of asset. To engage with the platform's new features, users will
utilise a new app as part of this release, empowering them to create and
manage reservations from their mobile device. In addition to this new booking
functionality, the release also features a completely updated user interface,
which has garnered positive feedback from customers who have received it since
its recent launch.
This newly introduced functionality presents a promising avenue for increasing
revenue within SwipedOn's extensive customer base. The pricing model has
shifted from a 'per reception' approach for visitor management to a 'per
asset/per month' model, offering SmartSpace a substantial opportunity to boost
Average Revenue Per User ("ARPU"). By expanding customer engagement with our
software, we will strengthen both customer loyalty and enhance revenue
retention. SwipedOn has also introduced a revised pricing structure that
enhances the differentiation between its tiers, facilitating more effective
upselling to customers.
The growth in customer numbers has gained significant momentum since the
beginning of the year, reaching levels not seen since before the pandemic, a
time when the Average Revenue Per User was approximately half of where it
stands at today. This acceleration in new customer acquisition is attributed
to the enhanced efficiency of our marketing activity, which was brought
in-house last year. This strategic shift has yielded improvements in both the
quality and quantity of customer leads. Despite this surge in customer growth,
our overall marketing expenditure has only moderately increased, resulting in
a considerable decrease in the cost per lead and customer acquisition cost.
Customer acquisition costs since the start of the current financial year have
averaged £1,050, compared to £1,670 during the comparative period. This
generated £0.8 million of new ARR from 872 new customers in the first eight
months of the year (8 months FY23: £0.4 million from 518 new customers).
We allocate the bulk of our marketing budget to target five English-speaking
markets: the United States, the United Kingdom, Canada, Australia, and New
Zealand. Our influence is most substantial in the United States where we
maintain a local sales team based out of Austin and Chicago. While we
consistently achieve strong results in these markets, we also recognise the
potential for additional strategic advantages by expanding our presence into
non-English speaking regions. We have therefore introduced fully localised
language versions of SwipedOn in three new markets, Taiwan, China and Germany.
Each country variant encompasses a dedicated local language website, tailored
marketing campaigns, product adaptations, and localised sales and customer
support.
Evoko Naso billings were at levels seen during H1 FY23, but down when compared
to the second half of FY23. The recent introduction of an updated Naso version
is anticipated to bolster sales in the latter part of the year. This updated
Naso iteration marks a significant development, by integrating room and desk
booking into one unified app, along with delivering improved functionality and
performance.
The Company made steady progress towards achieving cash flow breakeven, with
positive cash flow generated from continuing operations. When we factor in
capitalised development expenses and operating lease payments, the cash
outflow for the six-month period totalled £0.37 million, compared to £0.72
million for the comparative period to 31 July 2022.
Group Key performance indicators
Metric 30 September 2023 31 July 2023 31 January 2023 31 July 2022
ARR* (£m) 6.0 5.8 5.4 4.8
Monthly average revenue per user* (£) 96 94 92 86
Customers 5,112 4,991 4,722 4,548
Financial review
In July 2023 the Group completed the disposal of A+K. As a result this
business segment has been classified as a disposal group with the financial
performance for both the current and all comparative periods being included
within discontinued activities in the income statement.
The Group delivered 17% growth in recurring revenues during the period. The
breakdown of revenue by type is as follows:
Six months to 31 July 2023 Six months to 31 July 2022 Year ended 31 January 2023
Unaudited Unaudited Audited
£000 £000 £000
Recurring revenue 2,704 2,303 4,898
Hardware revenue 13 26 41
Other revenue 24 39 117
Total revenue 2,741 2,369 5,056
Revenue increased as customer numbers grew and existing customers expanded
their usage of our products. Growth in customer numbers in the first half of
the year reached levels not seen since prior to the pandemic. Added to this,
expansion from existing customers continued, as customers added more locations
and moved to higher tier price plans. Revenue churn remained stable averaging
at 12.8% (FY23: 11.5%). Revenue growth was despite movements in exchange rates
having a weakening impact on growth.
Revenue generated from the white label version of our software which is
bundled with Evoko's Naso meeting room panel, remained at similar levels seen
in H1 FY23, but was down on H2 FY23. Both Smartspace and Evoko have been
working on enhancements to the Naso product offering which were released
towards the end of H1, with a view of increasing latter in the year. The
recent acquisition of Evoko by Biamp, should broaden the reach of Evoko
through the extensive Biamp sales channel. We expect the impact of this to
take a few months to flow through.
Group administrative expenses fell by 3% to £3.10 million (31 July 2022:
£3.19 million) due to increased capitalised development which was heavily
focussed on SwipedOn Spaces. Administration expenses prior to depreciation,
amortisation, and share based payments, with capitalised development added
back, showed an increase of 10%. This reflects a combination of
inflation-based wage increases and reduced staff vacancies when compared to
the prior period.
Adjusted EBITDA loss for the six-month period was £63K (H1 FY23: £497K
loss).
A taxation charge of £116K was recorded relating to profits generated in the
Group's New Zealand based subsidiary, SwipedOn. This charge was recognised as
a release of accumulated tax loss deferred tax assets, which will be utilised
to offset against the profit generated in the current reporting period.
Research and development undertaken in New Zealand generated cashed out tax
credits of £20K during the period.
Profit for the period from discontinued activities relates to a combination of
the disposal of A+K and the final strike-off of two Australian subsidiaries
that had accumulated foreign currency translation differences. Total
consideration for the disposal of A+K amounted to £1.38 million, net assets
disposed of were £1.55 million, and costs of £0.12 million were incurred,
resulting in an overall loss on disposal of £0.23 million. The profit
recognised on the strike off of the Australian subsidiaries amounts to £0.50
million, which is a non-cash transaction that is recycled through other
comprehensive income. By utilising accumulated losses held within the Group,
no tax was incurred on the disposal, therefore allowing the release of
deferred tax liabilities of £0.07 million, which is included in the result
from discontinued activities.
Cash flow
Cash generated from continuing operations amounted to £0.16 million (31 July
2022: £0.48 million consumed). The transition to positive cashflow has
occurred by the growth in high margin recurring revenues, together with a net
positive movement in working capital, primarily generated by increased
deferred revenue.
Cash inflow from investing activities of £0.62 million (31 July 2022: £0.22
million outflow) have been generated from the net disposal proceeds of A+K of
£1.14 million, offset by the investment in software development of £0.51
million (31 July 2022: £0.21 million).
Cash outflows from financing activities of £0.36 million (31 July 2022:
£0.08 million) relate to the repayment of the mortgage held on the groups
former freehold building in Mildenhall that has now been sold, together with
lease liability payments for the Group's offices in Cambridgeshire and
Tauranga.
The above cash flows resulted in a cash balance at the period end of £2.21
million (31 July 2022: £2.32 million).
Outlook
As a SaaS-based software company focused on pure subscription revenue, we find
ourselves in a sizable market with untapped potential. As hybrid working has
been accepted as the norm for many businesses and with growing momentum of
employers reducing their real estate footprint, without reducing their
headcount, businesses can now plan their long-term strategies accordingly with
the help of products such as those offered by SmartSpace. Consequently, our
confidence in both our short-term and long-term business prospects remains
unwavering. Despite the ongoing challenges and uncertainties, particularly
with rising costs, we maintain our belief in achieving our goals of being a
profitable high-growth SaaS enterprise. On a 31 January 2023 constant currency
basis, the Board continues to expect full year results to be in line with its
expectations and maintains a positive outlook for future growth.
People
On behalf of the Board, I extend my appreciation to all my colleagues for
their diligent efforts in achieving the successes we've seen in the first half
of the year.
Frank Beechinor
Chief Executive
16 October 2023
Consolidated Income Statement
For the six months ended 31 July 2023
Six months to 31 July 2023 Six months to 31 July 2022 Year ended 31 January 2023
Unaudited Unaudited Audited
£000 £000 £000
Continuing operations
Revenue from contracts with customers 2,741 2,368 5,056
Costs of sale of goods (13) (21) (32)
Cost of providing services (211) (238) (527)
Gross profit 2,517 2,109 4,497
Administrative expenses (3,095) (3,187) (6,369)
Net impairment losses on financial assets (1) 1 3
Other income 2 3 10
Operating loss (577) (1,074) (1,859)
Adjusted EBITDA * (63) (497) (765)
Reorganisation and transactional items - (27) (81)
Depreciation (44) (43) (88)
Amortisation (352) (310) (646)
Impairment of financial assets (1) 1 3
Share based payments charge (117) (198) (282)
Operating loss (577) (1,074) (1,859)
Finance income 1 - 1
Finance costs (13) (3) (7)
Loss before tax (589) (1,077) (1,865)
Taxation (116) (13) (215)
Loss for the period after tax (705) (1,090) (2,080)
Profit / (loss) for the period from discontinued operations 267 (1) (658)
Loss for the period (438) (1,091) (2,738)
Other comprehensive income
Exchange differences reclassified to income statement (495) - -
Exchange differences on translation of foreign operations (385) 262 330
Total other comprehensive income / (loss) (880) 262 330
Total comprehensive loss (1,318) (829) (2,408)
Basic profit / (loss) per share
Continuing operations (2.43p) (3.77p) (7.19p)
Discontinued operations 0.92p (0.00p) (2.27p)
Total (1.51p) (3.77p) (9.46p)
Diluted profit / (loss) per share
Continuing operations (2.43p) (3.77p) (7.19p)
Discontinued operations 0.92p (0.00p) (2.27p)
Total (1.51p) (3.77p) (9.46p)
* 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 2023
31 July 31 July 31 January
2023 2022 2023
Unaudited Unaudited Audited
£000 £000 £000
ASSETS
Non-current assets
Property, plant and equipment 51 743 54
Right-of-use assets 286 68 277
Intangible assets 9,434 10,806 9,782
Deferred tax assets 2,118 2,476 2,263
Total non-current assets 11,889 14,093 12,376
Current assets
Inventories - 80 -
Contract assets - 1 -
Trade and other receivables 400 592 480
Prepayments 81 137 37
Cash and cash equivalents 2,213 2,315 1,962
2,694 3,125 2,479
Assets classified as held for sale - - 1,731
Total current assets 2,694 3,125 4,210
Total assets 14,583 17,218 16,586
LIABILITIES
Non-current liabilities
Lease liabilities 233 6 233
Total non-current liabilities 233 6 233
Current liabilities
Trade and other payables 1,074 1,337 1,115
Contract liabilities 2,719 2,116 2,615
Other tax liabilities 47 212 90
Borrowings - 341 334
Lease liabilities 67 73 52
3,907 4,079 4,206
Liabilities directly associated with assets classified as held for sale - - 506
Total current liabilities 3,907 4,079 4,712
Total liabilities 4,140 4,085 4,945
NET ASSETS 10,443 13,133 11,641
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 (2,503) (1,665) (1,670)
Retained earnings 6,213 8,065 6,578
Total equity 10,443 13,133 11,641
Consolidated Statement of Cash Flows
For the six months ended 31 July 2023
Six months to 31 July 2023 Six months to 31 July 2022 Year ended 31 January 2023
Unaudited Unaudited Audited
£000 £000 £000
Cash from operating activities
Cash generated / (consumed) by operations 17 (217) (99)
Interest received 1 - 1
Interest paid (13) (9) (22)
Income taxes refunded 20 68 67
Net cash inflow/ (outflow) from operating activities 25 (158) (53)
Cash flows from investing activities
Payments for property, plant and equipment (8) (12) (26)
Payment of software development costs (511) (212) (686)
Proceeds from disposal of subsidiary 304 - 65
Proceeds from sale of property, plant and equipment 838 - -
Net cash from investing activities 623 (224) (647)
Cash flows from financing activities
Proceeds from issue of share capital - - -
Repayment of borrowings (334) (44) (51)
Payment of lease liabilities (24) (34) (68)
Net cashflow from financing activities (358) (78) (119)
Net change in cash and cash equivalents 290 (460) (819)
Cash and cash equivalents the beginning of the period
1,962 2,758 2,758
Effects of exchange rate changes on cash and cash equivalents (39) 17 23
Cash and cash equivalents at end of period 2,213 2,315 1,962
Consolidated Statement of Changes in Equity
For the six months ended 31 July 2023
Share Share premium Other reserves Retained earnings
Unaudited capital Total
£000 £000 £000 £000 £000
At 1 February 2023 2,894 3,839 (1,670) 6,578 11,641
Loss for the period - - - (437) (437)
Other comprehensive loss for the period - - (880) - (880)
Total comprehensive loss for the period - - (880) (437) (1,317)
Reallocation of revaluation reserve on disposal - - (73) 73 -
Share based payment- continuing operations - - 118 - 118
Share-based payment expense - discontinued operations - - 2 - 2
At 31 July 2023 2,894 3,839 (2,503) 6,213 10,443
Share Share premium Other Retained earnings
Unaudited capital reserves 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 loss for the period - - 262 (1,091) (829)
Share-based payment expense - continuing operations - - 206 - 206
At 31 July 2022 2,894 3,839 (1,665) 8,065 13,133
Share Share premium Other Retained earnings
Audited capital reserves Total
£000 £000 £000 £000 £000
At 1 February 2022 2,894 3,839 (2,133) 9,156 13,756
Loss for the period - - - (2,738) (2,738)
Other comprehensive income for the period - - 330 - 330
Total comprehensive loss for the period - - 330 (2,738) (2,408)
Lapsed share options - - (160) 160 -
Share-based payment expense - continuing operations - - 290 - 290
Share-based payment expense - discontinued operations - - 3 - 3
At 31 January 2023 2,894 3,839 (1,670) 6,578 11,641
Notes to the Interim Financial Statements
1. Basis of Preparation
The unaudited interim report for the six months to 31 July 2023 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 2023
are extracted from the statutory financial statements which have been reported
on by the Company's auditor, Cooper Parry Group Limited. 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
2023 and expected to be used for the year ending 31 January 2024.
This interim report for the six months to 31 July 2023, which complies with
IAS 34 'Interim Financial Reporting', was approved by the Board on 16 October
2023.
Hard copies of the interim report are available from the Company at its
registered office at 4 Fordham House Court, Fordham House Estate, Fordham, CB7
5LL. 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 2023, as described in those annual financial statements.
3. Disposal of subsidiaries
On 14 July 2023, SmartSpace Software Plc completed the sale of the freehold
asset and the business of Anders + Kern U.K. Limited ("A&K") for an
aggregate consideration of £1,375,000. The sale was effected through an
initial asset disposal of the Group's freehold building in Mildenhall,
Norderstedt House, along with a subsequent disposal of the remaining business
of A&K as a share sale.
The freehold building was carried on the Group's balance sheet at a value of
£662,000. A mortgage of £334,000 on the freehold building was repaid in
February 2023 and gross disposal proceeds from the sale of the building
totalled £860,000, in cash, which was received on completion. Costs of
£22,000 were incurred on the disposal generating net disposal proceeds of
£838,000.
The remaining business of A&K was sold through a sale and purchase
agreement for the entire issued share capital of A&K for gross
consideration of £515,000, payable in cash following completion. Cash of
£114,000 remained with the disposed business and costs of £99,000 were
incurred on the disposal generating net disposal proceeds of £304,000.
In February 2023 the Group completed the voluntary strike off of its
Australian subsidiaries which were acquired in November 2019 as part of Space
Connect. The trade and assets of these entities had been previously
transferred to the Group's UK operating entity. As a result £495,000 of
accumulated exchange differences on the foreign currency investment, have been
recycled from the translation reserve to profit and loss.
The profit on disposal and net book value of the assets disposed of are
summarised below.
Financial performance and cashflow information from discontinued operations Six months to 31 July 2023 Six months to 31 July 2022 Year ended 31 January 2023
Unaudited Unaudited Audited
£'000 £'000 £'000
Revenue from contracts with customers 1,024 1,304 2,094
Costs of sale of goods (710) (888) (1,406)
Cost of providing services (7) (39) (67)
Gross profit 307 377 621
Administrative expenses (320) (404) (790)
Impairment of discontinued operations - - (558)
Disposal contingent consideration - 29 27
Loss before tax (13) 2 (700)
Tax 2 2 42
Loss after tax (11) 4 (658)
Net cash outflow from operating activities (147) 255 (234)
Net cash inflow from investing activities 1,142 (7) 56
Net cash outflow from financing activities (334) (14) (20)
661 234 (198)
Details of Sale A&K Trading Norderstedt House disposal Space Connect Australia Total
£'000 £'000 £'000 £'000
Proceeds from sale of A&K 515 - - 515
Proceeds from sale of Norderstedt House - 860 - 860
Total Consideration 515 860 - 1,375
Carrying value of net assets sold (884) (662) - (1,546)
Disposal costs (99) (22) - (121)
Taxation - 75 - 75
Exchange differences on translation of discontinued operations - - 495 495
Profit / (loss) on disposal (468) 251 495 278
Profit to date of disposal (see above table) (11) - - (11)
Total result from discontinued activities (479) 251 495 267
Carrying value of assets disposed A&K Trading Norderstedt House Space Connect Australia Total
disposal
£'000 £'000 £'000 £'000
Goodwill 586 - - 586
Intangible Assets 78 - - 78
Property, plant and equipment 3 662 - 665
Deferred tax assets 132 - - 132
Inventories 112 - - 112
Trade and other receivables 205 - - 205
Cash and cash equivalents 114 - - 114
Trade and other payables (346) - - (346)
884 662 - 1,546
4. Segmental Analysis
Six months ended 31 July 2023
Space Connect Central
Unaudited SwipedOn costs Total
Unaudited Unaudited Unaudited
£000 £000 £000 £000
Revenue from contracts with customers 310 2,431 - 2,741
Costs of sale of goods - (13) - (13)
Cost of providing services (2) (209) - (211)
Gross profit 308 2,209 - 2,517
Administrative expenses (701) (1,859) (535) (3,095)
Net impairment losses on financial assets - (1) - (1)
Other income - 2 - 2
Operating profit / (loss) (393) 351 (535) (577)
Adjusted EBITDA* (143) 554 (474) (63)
Reorganisation and transactional items included within administrative expenses - - - -
Depreciation (5) (37) (2) (44)
Amortisation (240) (112) - (352)
Impairment of financial asset - (1) - (1)
Share based payments charge (5) (53) (59) (117)
Operating profit / (loss) (393) 351 (535) (577)
Finance income - 1 - 1
Finance costs - (13) - (13)
Profit / (loss) profit before tax (393) 339 (535) (589)
Six months ended 31 July 2022
Space Connect Central
Unaudited SwipedOn costs Total
Unaudited Unaudited Unaudited
£000 £000 £000 £000
Revenue from contracts with customers 305 2,063 - 2,368
Costs of sale of goods - (21) - (21)
Cost of providing services (2) (236) - (238)
Gross profit 303 1,806 - 2,109
Administrative expenses (938) (1,563) (686) (3,187)
Net impairment losses on financial assets - 1 - 1
Other income - 3 - 3
Operating loss (635) 247 (686) (1,074)
Adjusted EBITDA* (360) 364 (501) (497)
Reorganisation and transactional items included within administrative expenses (27) - - (27)
Depreciation (3) (38) (2) (43)
Amortisation (230) (80) - (310)
Impairment of financial asset - 1 - 1
Share based payments charge (15) - (183) (198)
Operating loss (635) 247 (686) (1,074)
Finance income - - - -
Finance costs - (3) - (3)
Profit / (loss) before tax (635) 244 (686) (1,077)
Year ended 31 January 2023 SwipedOn
Space Connect Audited Central
Audited costs Total
Audited Audited
£000 £000 £000 £000
Revenue from contracts with customers 636 4,420 - 5,056
Costs of sale of goods - (32) - (32)
Cost of providing services (3) (524) - (527)
Gross profit 633 3,864 - 4,497
Administrative expenses (1,722) (3,346) (1,301) (6,369)
Net impairment losses on financial assets - 3 - 3
Other income - 10 - 10
Operating profit / (loss) (1,089) 531 (1,301) (1,859)
Adjusted EBITDA * (515) 879 (1,129) (765)
Reorganisation and transactional items included within administrative expenses (81) - - (81)
Depreciation (7) (79) (2) (88)
Amortisation (464) (182) - (646)
Impairment of financial assets - 3 - 3
Share based payments charge (22) (90) (170) (282)
Operating profit / (loss) (1,089) 531 (1,301) (1,859)
Finance income - 1 - 1
Finance costs - (7) - (7)
Profit / (loss) before tax (1,089) 525 (1,301) (1,865)
* 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
5. Revenue
Six months ended 31 July 2023
Space Connect SwipedOn Total
Unaudited Unaudited Unaudited
£000 £000 £000
Segment revenue 310 2,431 2,741
Timing of revenue:
At a point in time 24 13 37
Over time 286 2,418 2,704
Total 310 2,431 2,741
Six months ended 31 July 2022
Space Connect SwipedOn Total
Unaudited Unaudited Unaudited
£000 £000 £000
Segment revenue 305 2,063 2,368
Timing of revenue:
At a point in time 31 35 66
Over time 274 2,028 2,302
Total 305 2,063 2,368
Year ended 31 January 2023 Space Connect SwipedOn Total
Audited Audited Audited
£000 £000 £000
Segment revenue 636 4,420 5,056
Timing of revenue:
At a point in time 99 60 159
Over time 537 4,360 4,897
Total 636 4,420 5,056
6. Loss per share
Six months Six months ended Year
ended 31 July 2022 ended 31 January 2023
31 July 2023 Unaudited Audited
Unaudited
£000 £000 £000
Loss attributable to ordinary equity holders of the Company
From continuing operations (705) (1,090) (2,080)
From discontinued operations 267 (1) (658)
Total (438) (1,091) (2,738)
Number Number Number
Weighted average number of shares used as denominator in calculating earnings 28,941,234 28,941,234
per share
28,941,234
Adjustment for calculation of diluted earnings per share - - -
Weighted average number of shares used as denominator in calculating diluted 28,941,234 28,941,234 28,941,234
earnings per share
Pence Pence Pence
Basic loss per share:
From continuing operations (2.43p) (3.77p) (7.19p)
From discontinued operations 0.92p (0.00p) (2.27p)
Total (1.51p) (3.77p) (9.46p)
Diluted loss per share:
From continuing operations (2.43p) (3.77p) (7.19p)
From discontinued operations 0.92p (0.00p) (2.27p)
Total (1.51p) (3.77p) (9.46p)
7. Cash flow information
Six months to 31 July 2023 Six months to 31 July 2022 Year ended 31 January 2023
Unaudited Unaudited Audited
£000 £000 £000
Loss before income tax from continuing operations (589) (1,091) (1,865)
Adjustments for:
Depreciation and amortisation 396 353 734
Non-cash employee benefit expense 117 198 282
Finance costs - net 12 3 6
Credit losses 1 (1) (3)
Net exchange differences (4) 31 23
Change in operating assets and liabilities of continuing operations
Movement in trade and other receivables 49 (133) (138)
Movement in contract assets - 4 5
Movement in prepayments (47) 6 71
Movement in receivables from discontinued operations - - 141
Movement in trade creditors (19) (87) (40)
Movement in other creditors (16) (59) 111
Movement in deferred income 264 280 793
Movement in intercompany - 20 -
Cash generated from continuing operations 164 (476) 120
Profit before income tax from discontinued operations 190 2 (700)
Adjustments for:
Profit on sale of discontinued operations - - (65)
Depreciation and amortisation 18 21 41
Impairment of intangible assets - - 558
Non-cash employee benefit expense 2 - 3
Finance costs - net - 6 15
Loss on sale of non-current assets (177) - -
Net exchange differences - (2) -
Loss on sale of discontinued operations (29) - -
Change in operating assets and liabilities of discontinued operations
Movement in trade and other receivables 73 (44) (113)
Movement in inventories (7) 122 98
Movement in prepayments (6) 21 45
Movement in trade creditors (121) 94 37
Movement in other creditors (5) 75 (32)
Movement in contract liabilities (56) - 35
Movement in payables due to continuing operations - - (141)
Movement in deferred income (29) (16) -
Movement in intercompany - (20) -
Cash generated from discontinued operations (147) 259 (219)
Cash used in operations 17 (217) (99)
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