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RNS Number : 0389T Thruvision Group PLC 22 November 2021
22 November 2021
Thruvision Group plc
("Thruvision" or the "Group")
Interim Results for the six months ended 30 September 2021
Thruvision (AIM: THRU), the specialist provider of 'safe distance'
people-screening technology to the international security market, announces
its unaudited results for the six months ended 30 September 2021.
Key Highlights
· Revenue for the six months ended 30 September 2021 was £2.0 million (H1 2021:
£4.7 million).
· Trading since 30 September has strengthened significantly and confidence about
H2 trading is strong.
· Profit Protection revenue grew by 50% to £1.0 million in the first half (H1
2021: £0.65 million) and a further £1.7 million of orders have since been
received.
· Since the end of H1 we have received a major order from Tesco, the leading UK
retailer, following its decision to deploy Thruvision at scale across its UK
distribution network.
· Last year's large H1 sale to US Customs and Border Protection (CBP) was not
repeated this year but strong engagement during H1 supports confidence of
expected order-flow in H2.
· Transportation Security Administration (TSA) accreditation testing continued
after the Covid-19 hiatus.
· The Group's EBITDA loss was £1.6 million (H1 2021: breakeven) and gross
margin of 49% (H1 2021: 48%)
· Cash balance at 30 September 2021 was £4.1 million (31 March 2021: £7.3
million), with cash at 19 November 2021 of £4.0 million.
Commenting on the results, Colin Evans, Chief Executive of Thruvision, said:
"We have seen steadily building momentum since the spring, with continued
strong performance in our Profit Protection market in particular. We are
delighted to add Tesco to our growing list of major users and are pleased with
the increasing traction we are seeing with retailers in Europe and the US. We
have been very active helping US Customs and Border Protection (CBP) respond
to the rapid increase in immigration levels on the southern border and
anticipate future orders as a result. We are increasingly confident that both
Profit Protection and CBP can deliver strong growth over the short to medium
term, and that we are well positioned to benefit from the ongoing recovery in
the global aviation sector. As a result, we remain confident of achieving
growth in full year revenue and an improvement in our cash position in H2."
For further information please contact:
Thruvision Group
plc
+44 (0)1235 425 400
Tom Black, Executive Chairman
Colin Evans, Chief Executive
Investec Bank
plc
+44 (0)20 7597 5970
Patrick Robb / James Rudd / Sebastian Lawrence
FTI Consulting
LLP
+44 (0)20 3727 1000
Matt Dixon / Tom Blundell
About Thruvision
Thruvision is the leading provider of safe distance, people security screening
technology. Using patented passive terahertz technology, Thruvision is
uniquely capable of detecting metallic and non-metallic threats including
weapons, explosives and contraband items that are hidden under clothing, at
distances between 3m and 10m. Addressing the growing need for safe, fast and
effective security, Thruvision completely removes the need for physical
"pat-downs" and has been vetted and approved by the US Transportation Security
Administration for surface transportation. Operationally deployed in 20
countries around the world, Thruvision is used for aviation and transportation
security, retail supply chain loss prevention, facilities and public area
protection and customs and border control. The company has offices near Oxford
and Washington DC.
www.thruvision.com (http://www.thruvision.com)
Half year report
for the six months ended 30 September 2021
Chairman's Statement
The Group's trading momentum has continued to build strongly this financial
year, particularly in Profit Protection, although first half revenue of £2.0
million (H1 2021: £4.7 million, H2 2021: £2.0 million) was reduced due to
sales slipping into early H2 as described in the Trading Update of 7 October.
Last year's H1 comparator included material revenue of £2.9 million from a US
CBP order which was not repeated in H1 this year although we do anticipate
further order flow from this customer in H2. Encouragingly, we have already
added a further £1.7 million of Profit Protection orders since the end of
September.
Profit Protection revenue grew by 50% over H1 and, as with previous periods,
this growth continues to come from both existing customers, including ASOS, JD
Sports and Next as they open new distribution centre capacity, and from new
customers attracted by our success at existing installations. We are
particularly pleased that since the end of H1, Tesco has become the latest
major UK retailer to invest in a substantial rollout following a pilot
programme that demonstrated a strong return on investment. We are encouraged
by progress in both the US and Europe where we have invested in further sales
capacity in the last six months. This progress has convinced us that our
Profit Protection revenues are now set on a long-term growth path.
In our Customs segment, the absence of CBP orders in H1 reduced our headline
revenue, but we are increasingly confident about the scale of the opportunity
with this important customer. With growing immigration pressure on the US
southern border, many of our existing installed units have been redeployed to
meet this challenge and we have worked closely with CBP to effect this. This
close engagement has revealed the significant value our solution provides, and
we are increasingly confident of a further significant expansion of Thruvision
deployments by CBP over the next year.
In our third key market, Aviation, traffic levels are starting to recover, and
we continue to progress through the TSA accreditation process. Although this
has been a slow and often frustrating process, contactless security remains a
priority for the global aviation industry, and we remain well placed to meet
this need when accredited and as the global aviation industry recovers.
Thanks to the hard work and determination of our staff, the business has come
through the pandemic well, albeit with our growth trajectory delayed, and we
are now confident that the worst effects of Covid-19 are behind us. Our other
major recent concern relates to the well-publicised supply chain issues
disrupting much of industry and our team has worked hard to mitigate its
impact on our business. I am pleased to report that our supplies of essential
components have been largely protected and that our key supplier relationships
remain very strong.
Outlook
With Profit Protection performing strongly, growing confidence about our
strategic prospects with CBP and continued improvements in broader
international market conditions, we remain confident of achieving growth in
full year revenue and an improvement in our cash position in H2 as the
business returns to its pre-pandemic growth trajectory.
Strategic Update
Thruvision addresses the growing international need to safely, quickly and
comprehensively security screen individuals for weapons, contraband or other
illicit items that might be concealed in their clothing. As reported
previously, the pandemic has seen many organisations look to replace metal
detectors and airport body scanners given they both require physical contact
between security guards and individuals to resolve alarms. By operating at a
physically distant range of several metres, Thruvision cameras completely
remove the need for physical searches.
With this important differentiator and our growing flagship customer list, we
believe we have now established ourselves in the mainstream international
security market. Our Profit Protection market in the UK, US and Europe is
recovering strongly from Covid-19, international customs agencies are very
active again as borders reopen, and the recovery of the global aviation
industry is now underway.
Business Review
Profit Protection
Our Profit Protection market continues to be driven by the rapid growth in
online retailing and home delivery services. Theft by employees in
distribution centres of easy-to-conceal, high value items such as fashion
apparel, cosmetics, electronics, alcohol and tobacco continues to be a
significant problem which many retailers struggle to address.
Order-flow has steadily picked up since the end of the spring lockdown in the
UK. Against full year Profit Protection revenue of £2.0 million in FY 2021,
we recorded £1.0 million of revenue in the first half and have added £1.7
million of new orders since the end of September. This performance has come
from a number of customers including Next, Boots, JD Sports, ASOS, THG,
Clipper and CEVA either adding units to new or upgraded distribution centres
or upgrading old Thruvision models to our latest LPC product family, designed
specifically for the Profit Protection market. We are particularly pleased
that since the end of H1 Tesco has become the latest major UK retailer to
invest in a substantial rollout following an initial pilot programme that
demonstrated a strong return on investment.
In addition to the UK, we have installed units in The Netherlands, Germany,
Ireland, Poland and the US in the period and our new sales teams covering
Eastern Europe, Western Europe and the US are making excellent progress in
building the broader sales pipeline.
Half year report (continued)
for the six months ended 30 September 2021
Customs
This is a well-established Thruvision market, where our ability to detect
predominantly non-metallic, prohibited items such as cash and drugs at all
types of border checkpoint means we have no direct competition. We have
equipment in service with nine international customs agencies, but CBP
represents, by some distance, our single largest opportunity in this market.
Although we did not receive any orders from CBP in the first half (H1 2021:
CBP order value £3.8 million), the Chief Privacy Officer for US Department of
Homeland Security approved Thruvision's operational use by CBP and we have
trained over 700 officers in the last few months. We have partnered with one
of CBP's major equipment providers and as a result have made the Thruvision
product range available for purchase via the US Government Services
Administration (GSA) purchasing portal. Given the mounting pressure on the
southern border with Mexico in particular, we are seeing strong operational
demand for further units, and we are increasingly confident that we will see
further significant order-flow from CBP, via our chosen partner in this area,
in H2 and beyond.
Our interactions with a number of other customs agencies in Asia, the Gulf,
and UK Border Force have increased as borders have re-opened, and we therefore
foresee a growing opportunity in the broader customs market beyond CBP.
Aviation
Global aviation is starting to recover as governments and airline operators
establish various Covid-19 management protocols, with the reopening of UK / US
travel the latest example. Our primary focus remains moving through the TSA
accreditation process where slow but positive progress has been made. We are
seeing a pick-up in enquiry rates from airlines and airports both in the US
and the UK where our contactless detection capability is recognised as a key
differentiator. We expect "Detection at Range" (as described by TSA) to become
a formalised equipment category, alongside existing airport body scanners and
metal detections, in due course.
Other
The entrance security and surface transportation markets remain a lower
priority for us at this time. Nevertheless, a number of recent, fatal
workplace shootings in the US have resulted in some of our retail customer
prospects also expressing interest in our products enabling "dual-use"
deployments covering both outgoing theft and incoming firearms detection.
We have also seen increasing interest and some early sales into two new niche
markets. In the Prisons market, we have sold units to both Australia and The
Netherlands where authorities are aiming to use our technology to disrupt the
flow of contraband within prisons. Within the natural resources sector, we are
seeing interest from mining and mineral processing businesses which are
concerned about the theft of a range of items including precious metals and
blasting explosives. In both these markets, no other technology provides the
detection performance and flexibility of deployment that Thruvision can
achieve.
Product Range
We launched fully our extended product range during the early part of H1.
Using our modular hardware architecture, we are now using different software
functionality to meet the specific needs of each of our different markets. We
have recently launched our AI-based "Dynamic Detection" algorithm, developed
to meet aviation accreditation requirements, to the Profit Protection market.
This will enable faster employee screening which will, in many cases,
strengthen the business case to invest in Thruvision technology.
Manufacturing
Our manufacturing capability remains robust, and our principal suppliers have
traded well through the pandemic. We are only seeing supply-chain issues in
generic components such as power supplies and PCs, which we have been able to
manage effectively to date. It remains our intention to assemble products for
the US market in that country and, with modest further investment in
manufacturing capacity, we expect to complete the outsourcing of US assembly
and test of our cameras to our Florida-based partner in the remainder of this
year. This will have the added benefit of scaling-up our production capacity
and our business resilience.
People
Overall headcount remained constant at 42 during the period as the Group
reduced administrative support but strengthened its US team and grew the
Profit Protection sales team in Europe. We also added a new VP Software to
continue to develop our product range through further software innovation.
Half year report (continued)
for the six months ended 30 September 2021
Financial review
Financial results
During the six months ended 30 September 2021, revenues were £2.0 million (H1
2021: £4.7 million, FY 2021: £6.7 million). H1 2021 contained a single order
from US Customs and Border Protection (CBP) resulting in revenue of £2.9
million in the period which did not recur in H1 2022, although further orders
from CBP are anticipated in H2 2022 Gross margin increased slightly from the
prior period to 49% (H1 2021: 48%, FY 2021: 48%), where the mix of units sold,
and unit pricing were similar.
The Group EBITDA loss was £1.6 million (H1 2021: breakeven, FY 2021 loss of
£1.5 million). Operating loss in the period was £2.0 million (H1 2021: loss
of £0.5 million), FY 2021: loss of £2.8 million).
Cash at 30 September 2021 was £4.1 million (31 March 2021: £7.3 million),
with cash at 19 November 2021 of £4.0 million. Some £0.8 million of this
reduction in cash during H1 relates to increases in our stock balance to
support expected orders in H2.
Financial summary
6 months ended 6 months ended 12 months ended
30-Sep-21 30-Sep-20 31-Mar-21
Unaudited Unaudited Audited
£'000 £'000 £'000
Revenue 1,962 4,653 6,700
Cost of sales (1,001) (2,397) (3,486)
Gross Profit 961 2,256 3,214
EBITDA (1,580) 12 (1,501)
Depreciation and amortisation (285) (245) (518)
Share based payments (LTIP) (138) (177) (409)
FX gains/(losses) (1) (92) (329)
Operating profit / (loss) (2,004) (502) (2,757)
Finance revenue 10 11 22
Finance costs (7) (11) (21)
Profit / (Loss) before tax (2,001) (502) (2,756)
Income tax 87 108 266
Profit / (Loss) for the period / year from continuing operations (1,914) (394) (2,490)
Discontinued operations
Profit/(loss) from discontinued operations (net of tax) (33) 41 2
Profit / (Loss) for the period / year (1,947) (353) (2,488)
Half year report (continued)
for the six months ended 30 September 2021
Key Performance Indicators ("KPIs")
The Group considers the following to be the relevant KPIs which track the
trading performance and position of the business.
6 months ended 6 months ended 12 months ended
Financial KPIs 30-Sep-21 30-Sep-20 31-Mar-21
£'000 £'000 £'000
Revenue 1,962 4,653 6,700
Average revenue per unit sold * 73 72 67
Gross Profit 961 2,256 3,214
Gross Margin 49% 48% 48%
Overheads ** (2,827) (2,538) (5,282)
EBITDA profit / (loss) (1,580) 12 (1,501)
* Average revenue per unit has been recalculated from the figures presented in
previous financial periods. The above comparative data now excludes warranty
and support revenue which is separately analysed out below.
** Overheads exclude the share-based payment charge as well as foreign
exchange gains and losses. See Overheads table on page 6 for further detail.
Non-financial KPIs 6 months 30-Sep-21 6 months 30-Sep-20 12 months 31-Mar-21
No of units sold 22 58 84
Number of staff at end of period 42 39 42
Revenue
Thruvision revenues were £2.0 million in the six months to 30 September 2021
(H1 2021: £4.7 million, FY 2021: £6.7 million). Revenues has been split
between our three principle activities (unit sales, warranty and support
revenue and research and development revenues) as below.
Unit volumes of 22 (H1 2021: 58 units, FY 2021: 84 units) were achieved in the
period despite challenges presented by Coronavirus and the continuing weakness
in the Aviation and Customs sectors. 19 of these units were in Profit
Protection (H1 2021: 11 units, FY 2021: 36 units).
Revenue 6 months 6 months 12 months
30-Sep-21 30-Sep-20 31-Mar-21
£'000 £'000 £'000
Units 1,607 4,149 5,666
Warranty and support 300 349 836
Development 55 155 198
Total 1,962 4,653 6,700
The principal growth driver for the business is unit sales and, while we
expect to continue to be awarded customer funded development contracts, we do
not expect this to form a material proportion of revenues in the future.
Half year report (continued)
for the six months ended 30 September 2021
Gross Profit Margin
Gross margin increased marginally to 49% in the year (H1 2021: 48%, FY 2021:
48%) principally due to warranty and support revenue making up a higher
proportion of total revenue than in the comparative periods.
Gross Margin 6 months 6 months 12 months
30-Sep-21 30-Sep-20 31-Mar-21
£'000 £'000 £'000
Revenue 1,962 4,653 6,700
Gross Profit 961 2,256 3,214
Gross margin % 49% 48% 48%
Administrative expenses
Overheads increased by 11.4% to £2.8 million compared to the corresponding
period in FY21. This was mainly due to investment to drive growth in the US
and Europe Profit Protection markets which was partly offset by reduced
international travel as a result of the lockdown.
Sales and marketing expenditure increased by £163k to target growth in our
European and US profit protection markets.
Engineering costs include Manufacturing and R&D costs which have increased
as a result of additional recruitment in our software department as we look to
scale up and increase our product offerings going forwards.
Administrative expenses 6 months 6 months 12 months
30-Sep-21 30-Sep-20 31-Mar-21
£'000 £'000 £'000
Engineering 756 688 1,403
Sales and marketing 983 820 1,718
Property and administration 224 220 469
Management 338 321 642
PLC costs 241 244 532
Depreciation and amortisation 285 245 518
Overheads 2,827 2,538 5,282
Share based payments (LTIP) 138 177 409
Foreign exchange losses/(gains) 1 92 329
Total administration costs 2,966 2,807 6,020
Loss from continuing operations
Losses from continuing operations in the period were (£1.9 million) (H1 2021:
(£0.4 million), FY 2021: (£2.5 million)) including share-based payments.
Thruvision continues to invest in sales and marketing activities, developing
new markets and segments, whilst further investing in our engineering and
manufacturing capacity including R&D.
Half year report (continued)
for the six months ended 30 September 2021.
Cash Flows
Cash and cash equivalents at 30 September 2021 were £4.1 million (H1 2021:
£5.0 million, FY 2021: £7.3 million), with the principal movements in the
period being the loss recorded in the period as well as the net £1.6 million
working capital movements as per the cashflow statement on page 12.
Movements in working capital were as follows:
· £0.8 million of the reduction in cash since the start of the period relates
to increases in our stock balance to support expected orders in Q3 2022.
· £0.5 million relates to a reduction in deferred revenue balances during the
period, as revenues deferred as at 31 March 2021 was recognised as income in
the period.
· A further net £0.4 million relates to a net decrease in trade payables,
accruals and other creditors as well as provision balances. Trade creditors
reduced due to the timing of stock purchases in the period.
· A reduction in Trade receivables offset the above, showing a decrease of £0.1
million in the period.
Consolidated income statement
for the six months ended 30 September 2021
6 months ended 6 months ended Year ended
30 September 2021 30 September 2020 31 March 2021
Unaudited Unaudited Audited
Note £'000 £'000 £'000
Revenue 2 1,962 4,653 6,700
Cost of sales (1,001) (2,397) (3,486)
Gross profit 961 2,256 3,214
Administration costs (2,966) (2,807) (6,020)
Other income 1 49 49
Operating loss (2,004) (502) (2,757)
Finance revenue 10 11 22
Finance costs (7) (11) (21)
Loss before tax (2,001) (502) (2,756)
Income tax 87 108 266
Loss for the period / year from continuing operations (1,914) (394) (2,490)
Discontinued operations
(Loss)/profit from discontinued operation (net of tax) (33) 41 2
Loss for the period / year (1,947) (353) (2,488)
Adjusted loss: 3
Loss before tax from continuing operations (2,001) (502) (2,756)
Share-based payment 138 177 409
Adjusted loss before tax for the period / year from continuing operations (1,863) (325) (2,347)
Consolidated statement of comprehensive income
for the six months ended 30 September 2021
6 months ended 6 months ended Year ended
30 September 2021 30 September 2020 31 March 2021
Unaudited Unaudited Audited
£'000 £'000 £'000
Loss for the period / year from continuing operations (1,914) (394) (2,490)
Profit/(loss) for the period / year from discontinued operations (33) 41 2
Loss for the period / year attributable to owners of the parent (1,947) (353) (2,488)
Other comprehensive income/(expense) from continuing operations
Other comprehensive income that may be
subsequently reclassified to profit and loss:
Exchange differences on retranslation 2 - (48)
of foreign operations
Total comprehensive loss attributable to owners of the parent (1,945) (353) (2,536)
Consolidated statement of financial position
at 30 September 2021
30 September 2021 30 September 2020 31 March 2021
Unaudited Unaudited Audited
Note £'000 £'000 £'000
Assets
Non-current assets
Property, plant and equipment 910 1,069 1,103
Other intangible assets 42 55 48
952 1,124 1,151
Current assets
Inventories 5,257 3,513 4,419
Trade and other receivables 1,316 7,479 1,442
Current tax recoverable 270 219 378
Cash and cash equivalents 4,097 5,016 7,268
10,940 16,227 13,507
Total assets 11,892 17,351 14,658
Equity and liabilities
Attributable to owners of the parent
Equity share capital 5 1,458 1,455 1,458
Share Premium 47 - 47
Capital redemption reserve 163 163 163
Translation reserve 69 115 67
Retained earnings 7,769 11,476 9,578
Total equity 9,506 13,209 11,313
Non-current liabilities
Other payables 259 202 643
Provisions 38 38 38
297 240 681
Current liabilities
Trade and other payables 1,849 3,733 2,489
Provisions 240 169 175
2,089 3,902 2,664
Total liabilities 2,386 4,142 3,345
Total equity and liabilities 11,892 17,351 14,658
Consolidated statement of changes in equity
for the six months ended 30 September 2021
Ordinary share capital £'000 Share premium £'000 Capital redemption reserve £'000 Translation reserve £'000 Retained earnings £'000 Total equity £'000
At 31 March 2020 1,455 - 163 115 11,652 13,385
Share-based payment credit - - - - 177 177
Transactions with shareholders - - - - 177 177
Loss for the period - - - - (353) (353)
Other comprehensive income - - - - - -
Total comprehensive loss - - - - (353) (353)
At 30 September 2020 1,455 - 163 115 11,476 13,209
Shares issued 3 47 - - - 50
Share-based payment credit - - - - 237 237
Transactions with shareholders 3 47 - - 237 287
Loss for the period - - - - (2,135) (2,135)
Other comprehensive expense - - - (48) - (48)
Total comprehensive loss - - - (48) (2,135) (2,183)
At 31 March 2021 1,458 47 163 67 9,578 11,313
Share-based payment credit - - - - 138 138
Transactions with shareholders - - - - 138 138
Loss for the period - - - - (1,947) (1,947)
Other comprehensive income - - - 2 - 2
Total comprehensive income/(loss) - - - 2 (1,947) (1,945)
At 30 September 2021 1,458 47 163 69 7,769 9,506
Consolidated statement of cash flows
for the six months ended 30 September 2021
6 months ended 6 months ended Year ended
30 September 2021 30 September 2020 31 March 2021
Unaudited Unaudited Audited
£'000 £'000 £'000
Operating activities
Loss before tax from continuing operations (2,001) (502) (2,756)
Profit/(loss) before tax from discontinued operations (33) 41 2
Loss before tax (2,034) (461) (2,754)
Non-cash adjustment to reconcile loss before tax to net cash flows
Depreciation of property, plant and equipment 278 238 504
Amortisation of intangible assets 7 7 14
Share-based payment transaction expense 138 177 409
Unrealised (losses) / gains on foreign exchange (5) 11 5
Disposals of property, plant & equipment 25 8 103
Finance income (10) (11) (22)
Finance costs 7 11 21
Working capital adjustments:
Decrease / (increase) in trade and other receivables 126 (5,316) 956
Decrease / (increase) in inventories (838) 158 (748)
Increase / (decrease) in trade and other payables (479) 110 24
Increase / (decrease) in provisions 65 - (175)
Increase / (decrease) in deferred revenue (460) 1,380 891
Cash utilised in operations (3,180) (3,688) (772)
Tax received 197 179 179
Net cash flow from operating activities (2,983) (3,509) (593)
Investing activities
Purchase of property, plant & equipment (111) (78) (491)
Disposal of fixed assets - - 20
Interest received 10 11 22
Deferred consideration from disposal of Video Business - 63 63
Net cash flow from investing activities (101) (4) (386)
Financing activities
Proceeds from issues of shares - - 50
Lease obligation repayments (89) (86) (186)
Net cash flow from financing activities (89) (86) (136)
Net (decrease) in cash and cash equivalents (3,173) (3,599) (1,115)
Cash and cash equivalents at beginning of period / year 7,268 8,431 8,431
Effect of foreign exchange rate changes on cash and cash equivalents 2 184 (48)
Cash and cash equivalents at end of period / year 4,097 5,016 7,268
Notes to the financial statements
for the six months ended 30 September 2021
1. Accounting policies
Basis of preparation
The consolidated interim financial statements include those of Thruvision
Group plc and all of its subsidiary undertakings (together "the Group") drawn
up at 30 September 2021 and have been prepared in accordance with
International Accounting Standard 34, "Interim Financial Reporting" ("IAS 34")
as adopted for use in the European Union ("EU"). The consolidated interim
financial statements have been prepared using accounting policies and methods
of computation consistent with those applied in the consolidated financial
statements for the period ended 31 March 2021.
The Group is a public limited company incorporated and domiciled in England
& Wales and whose shares are quoted on AIM, a market operated by The
London Stock Exchange.
All values are rounded to £'000 except where otherwise stated.
Accounting policies
The annual consolidated financial statements of the Group are prepared on the
basis of International Financial Reporting Standards ("IFRS"). The
consolidated interim financial statements are presented on a condensed basis
as permitted by IAS 34 and therefore do not include all the disclosures that
would otherwise be required in a full set of financial statements and should
be read in conjunction with the most recent Annual Report and Accounts which
were approved by the Board of Directors on 9 July 2021 and have been filed
with Companies House. The condensed interim financial statements do not
constitute statutory accounts as defined in Section 435 of the Companies Act
2006 and are unaudited for all periods presented. The financial information
for the 12-month period ended 31 March 2021 is extracted from the financial
statements for that period. The auditors' report on those financial statements
was unqualified and did not contain an emphasis of matter reference and did
not contain a statement under section 498(2) or (3) of the Companies Act 2006.
The half year results for the current period to 30 September 2021 have not
been audited or reviewed by auditors pursuant to the Auditing Practices Board
guidance of Review of Interim Financial Information.
Adoption of new and revised International Financial Reporting Standards
The Group's accounting policies have been prepared in accordance with IFRS
effective as at its reporting date of 30 September 2021.
Standards Issued
The standards and interpretations that are issued up to the date of issuance
of the Group's interim financial statements are disclosed below. The Group has
adopted these standards, if applicable, when these became effective. Further
details are disclosed in the 31 March 2021 Annual Report available on the
Group's website: thruvision.com
Accounting developments - new standards, amendments and interpretations issued
and adopted
There were no new accounting standards or amendments requiring disclosure in
the period.
Going concern
The Group's loss before tax from continuing operations for the period was
£2.0 million (H1 2021: £0.5 million, FY 2021 £2.8 million). As at 30
September 2021 the Group had net current assets of £8.9 million (H1 2021:
£12.3 million, FY 2021: £10.8 million) and net cash reserves of £4.1
million (H1 2021: £5.0 million, FY 2021: £7.3 million). Additionally net
cash reserves were £4.0 million as at 19 November 2021.
The Board has reviewed cash flow forecasts for the period up to and including
30 November 2022. These forecasts and projections take into account reasonably
possible changes in trading performance and show that the Group will be able
to react as required in order to operate within the level of current funding
resources, and no need for the Group to take on any debt. In order to stress
test the adoption of the going concern basis, a cashflow forecast was also
produced which looked at the highly unlikely scenario in which no further
sales took place and certain non-discretionary areas of cash expenditure were
reduced. This showed that even under this extreme condition, the Group would
still have positive cash reserves as at 30 November 2022 with no need to take
on external debt. The Directors therefore believe there is sufficient cash
available to the Group to manage through these requirements.
As with all businesses, there are particular times of the year where the
Group's working capital requirements are at their peak. However, the Group is
well placed to manage business risk effectively and the Board reviews the
Group's performance against budgets and forecasts on a regular basis to ensure
action is taken where needed.
The Directors therefore are satisfied that the Group has adequate resources to
continue operating for a period of at least 12 months from the approval of
these accounts. For this reason, they have adopted the going concern basis in
preparing the financial statements.
Notes to the financial statements (continued)
for the six months ended 30 September 2021
2. Segmental information
The Directors do not split the business into segments in order to internally
analyse the business performance. The Directors believe that allocating
overheads by department provides a suitable level of business insight. The
overhead department cost centres comprise of Engineering (manufacturing and
R&D), sales and marketing, property and administration, Management and PLC
costs, with the split of costs as shown in the Half Year Report on page 6.
Analysis of revenue by customer
There have been three (H1 2021: one, FY 2021: one) individually material
customer/s (each comprising in excess of 10% of revenue) during the period.
These customers individually represented £359k, £206k and £200k of revenue
(H1 2021: £2,917k, FY 2021: £3,094k).
The Group's revenue by customer's geographical location is detailed below:
30 September 2021 30 September 2020 31 March 2021
Unaudited Unaudited Audited
£'000 £'000 £'000
UK 941 467 1,045
Americas 693 3,599 4,501
Asia Pacific 85 100 140
Europe 92 37 428
Middle East and Africa 151 450 586
1,962 4,653 6,700
The Group's Revenue by type is detailed below:
30 September 2021 30 September 2020 31 March 2021
Unaudited Unaudited Audited
£'000 £'000 £'000
Revenue recognised at point of delivery 1,662 4,304 5,864
Revenue recognised over time - extended warranty and support revenue 300 349 836
1,962 4,653 6,700
The Group's non-current assets by geography are detailed below:
30 September 2021 30 September 2020 31 March 2021
Unaudited Unaudited Audited
£'000 £'000 £'000
UK 828 977 1,001
Americas 124 147 150
952 1,124 1,151
3. Adjusted loss before tax
An adjusted loss before tax measure has been presented as the Directors
believe that this is a more relevant measure of the Group's underlying
performance. Adjusted loss is not defined under IFRS and has been shown as the
Directors consider this to be helpful for a better understanding of the
performance of the Group's underlying business. It may not be comparable with
similarly titled measurements reported by other companies and is not intended
to be a substitute for, or superior to, IFRS measures of profit.
The net adjustments to loss before tax from continuing operations are
summarised below:
6 months ended 6 months ended Year ended
30 September 2021 30 September 2020 31 March 2021
Unaudited Unaudited Audited
£'000 £'000 £'000
Share-based payment (LTIP) 138 177 409
Total adjustments 138 177 409
4. Loss per share
The following reflects the loss and share data used in the basic and diluted
loss per share calculations:
Unadjusted loss per share 6 months ended 6 months ended Year ended
30 September 2021 30 September 2020 31 March 2021
Unaudited Unaudited Audited
£'000 £'000 £'000
Loss from continuing operations attributable to ordinary shareholders (1,914) (394) (2,490)
Loss from continuing and discontinued operations attributable to ordinary (1,947) (353) (2,488)
shareholders
Weighted average number of shares 145,779,118 145,454,118 145,515,022
Basic and diluted loss per share - continuing operations (1.31p) (0.27p) (1.71p)
Basic and diluted loss per share - continuing and discontinued operations (1.34p) (0.24p) (1.71p)
Adjusted loss per share 6 months ended 6 months ended Year ended
30 September 2021 30 September 2020 31 March 2021
Unaudited Unaudited Audited
£'000 £'000 £'000
Loss from continuing operations attributable to ordinary shareholders (1,914) (394) (2,490)
Share-based payment 138 177 409
Adjusted (loss)/profit after tax (1,776) (217) (2,081)
Weighted average number of shares 145,779,118 145,454,118 145,515,022
Basic and diluted loss per share (1.31p) (0.27p) (1.71p)
Basic and diluted adjusted (loss)/profit per share (1.22p) (0.15p) (1.43p)
The inclusion of potential Ordinary Shares arising from Share based payments
(LTIP awards and EMI Options) would be anti-dilutive. Basic and diluted loss
per share has therefore been calculated using the same weighted number of
shares.
Notes to the financial statements (continued)
for the six months ended 30 September 2021
5. Issued share capital
As at 30 September 2021, there were 145,779,118 Ordinary Shares in issue (H1
2021: 145,454,118, FY 2021 145,779,118).
6. Share options
The following share awards were granted in the six-month period ended 30
September 2021:
EMI Approved Options
Grant date 4 August 2021
Number granted 200,000
Exercise price 24.40p
Vesting period (years) 3.0
The share-based payment charge in the period amounts to £138k (H1 2021:
£177k, FY 2021: £409k), with the fair value charge attributable to new
awards in the period determined using a Black Scholes calculation.
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