REG - Thruvision Group PLC - Interim Results
20/11/2023 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231120:nRST8905Ta&default-theme=true
RNS Number : 8905T Thruvision Group PLC 20 November 2023
20 November 2023
Thruvision Group plc
Interim Results
Thruvision Group plc (AIM: THRU, "Thruvision" or the "Group"), the leading
provider of walk-through security technology, today announces unaudited
results for the six months ended 30 September 2023 (H1 of 2024 financial year
- H1 2024).
Highlights
· Revenue grew 28% to £3.5 million (H1 2023: £2.8 million) driven mainly by:
· Customs market revenue growing 16% to £2.0 million (H1 2023: £1.7 million)
underpinned by a major contract win with a new Asian customer.
· Entrance security market seeing renewed demand with revenue increasing to
£0.8 million (H1 2023: £0.04 million).
· Adjusted gross margin(1) up 5.0pp to 53.9% (H1 2023: 48.9%) helped by
particularly positive pricing mix.
· Adjusted EBITDA loss(1) reduced slightly to £1.4 million (H1 2023: loss £1.6
million).
· Cash balance at 30 September 2023 was £2.4 million (31 March 2023: £2.8
million).
· £3.2 million (gross) equity fund raising on 26 October 2023 from Pentland
Group amongst other investors to support continued investment in sales and
marketing capability and delivering key new software functionality as well as
providing additional working capital flexibility and strengthening the balance
sheet.
· Pentland Group, owner of numerous consumer brands and majority shareholder in
one of the Group's longest-standing customers, JD Sports, has subsequently
increased its strategic shareholding to 10%.
H1 2024 H1 2023
Unaudited Unaudited
£m
£m
Change
Adjusted measures(1):
Adjusted gross profit 1.9 1.4 +41%
Adjusted gross margin 53.9% 48.9% +5.0pp
Adjusted EBITDA loss (1.4) (1.6) +11%
Adjusted loss before tax (1.6) (1.8) +11%
Statutory measures:
Revenue 3.5 2.8 +28%
Gross profit(2) 1.6 1.1 +47%
Gross margin(2) 45.7% 39.8% +5.9pp
Operating loss (1.6) (1.9) +18%
Loss before tax (1.6) (1.9) +17%
( )
(1) Alternative performance measures ('APMs') are used consistently throughout
this announcement and are referred to as 'adjusted'. These are defined in full
and reconciled to the reported statutory measures in the Appendix.
(2) As restated see note 5 in the interim financial statements.
Commenting on the results, Colin Evans, Chief Executive of Thruvision, said:
"Our proven track record in a number of international markets has allowed us
to deliver a resilient performance despite the US Customs setback that we
reported in October. In addition to further new Customs agency wins elsewhere,
we have seen a marked pick-up in activity in our Entrance Security market,
driven by heightened geopolitical tension. To capitalise fully on this, we are
accelerating our appointment of new Value-Added Resellers to broaden our reach
geographically.
"Given JD Sports' history as a long-term Thruvision customer, Pentland Group's
strategic investment provided a clear endorsement of the value of our
technology, particularly for the retail market. This strengthening of the
balance sheet, combined with our order backlog and healthy sales pipeline,
gives us confidence that we will grow strongly into the second half and
beyond."
For further information please contact:
Thruvision Group
plc
+44 (0)1235 425 400
Colin Evans, Chief Executive
Victoria Balchin, Chief Financial Officer
Investec Bank
plc
+44 (0)20 7597 5970
Patrick Robb / James Rudd / Sebastian Lawrence
Meare
Consulting
+44 (0)7990 858 548
Adrian Duffield
About Thruvision
Thruvision is the leading developer, manufacturer and supplier of walk-through
security technology. Its technology is deployed in more than 20 countries
around the world by government and commercial organisations in a wide range of
security situations, where large numbers of people need to be screened
quickly, safely and efficiently. Thruvision's patented technology is uniquely
capable of detecting concealed objects in real time using an advanced AI-based
detection algorithm. The Group has offices and manufacturing capabilities in
the UK and US.
Important information
This announcement may include statements that are, or may be deemed to be,
"forward-looking statements" (including words such as "believe", "expect",
"estimate", "intend", "anticipate" and words of similar meaning). By their
nature, forward-looking statements involve risk and uncertainty since they
relate to future events and circumstances, and actual results may, and often
do, differ materially from any forward-looking statements. Any forward-looking
statements in this announcement reflect management's view with respect to
future events as at the date of this announcement. Save as required by
applicable law, the Company undertakes no obligation to publicly revise any
forward-looking statements in this announcement, whether following any change
in its expectations or to reflect events or circumstances after the date of
this announcement.
Interim report
Headlines
The Group demonstrated a resilient performance in the six-month period to 30
September 2023. The business performed well and benefited from increasing
demand from a broader base of customers, mainly as a result of a deteriorating
security environment globally.
Revenue grew by 28% to £3.5 million (H1 2023: £2.8 million), with an order
backlog at 30 September of £1.0 million expected to be delivered in the third
quarter. Cash at 30 September 2023 was £2.4 million (31 March 2023: £2.8
million).
In particular, we saw increased international government activity, including
initial orders from two new Customs agencies and renewed focus on improving
entrance security across government and non-government customers. We continued
to make good progress in R&D ahead of a planned new product launch later
this financial year.
Broader US Federal budget challenges meant that, as we reported in October,
CBP did not place an anticipated order by the end of the first half. We
remain engaged with them to ensure that they derive maximum value from our
technology and are in a position to resume purchasing when the current border
crisis allows.
Strategic update
Our strategy is to build on our market-leading position as a developer,
manufacturer and supplier of walk-through security technology. We aim to
become a mainstream provider to, and increase our market-share in, a number of
growing and established international markets. The continued investment in
improving our patented AI-enhanced Terahertz (THz) imaging technology will
maintain our significant competitive advantage.
The increased geopolitical instability around the world has added further
impetus to the Entrance Security market where organisations are looking for
proven capability to detect weapons and explosives. This market was somewhat
dormant through COVID, but our strong brand and proven capability has meant we
have seen growing interest and demand in the last few months.
Retailers continue to manage a wide range of conflicting priorities, including
the challenging economic backdrop which is impacting their investment plans.
Our recently published UK-focused research, undertaken with Retail Economics,
shows retail theft is forecast to be £7.9bn this year with some 40% of this
attributable to employees. We continue to focus on retailers who recognise
that Thruvision offers an effective and easy to install way to reduce, and
deter, employee theft while providing an attractive in-year return on
investment.
We are seeing continued interest from Customs agencies internationally. This
is driven by the ongoing focus on border control and migration management and
counter-narcotics operations.
Given the increasing awareness of our unique technology and growing demand
from an increasing number of countries, we have accelerated the process of
appointing Value-Added Resellers (VARs) to support the international
opportunities and our widening geographical footprint across Europe, Middle
East and Asia.
Strategic investor and fund raising
On 26 October 2023, the Group raised £3.2 million gross in new equity to
support its continued investment in sales and marketing capability and
delivering key new software functionality as well as providing additional
working capital flexibility and strengthening the balance sheet.
After starting discussions earlier in the summer, Pentland Group became a
strategic investor in the Group through this fund-raising. JD Sports, which is
majority owned by Pentland Group, was one of Thruvision's earliest customers
and remains a strong advocate of our technology. Pentland Group's strategic
investment is a clear endorsement of our capabilities and demonstration of the
value of our technology, particularly for the retail market.
Current trading and outlook
Business performance is resilient and demonstrating good levels of non-CBP
growth. With geopolitical risks driving a strong bounce-back performance in
our Entrance Security market, and continued strategic progress in Retail
Distribution, our unique technology is being successfully used by a growing
number of major international organisations.
As we outlined on 2 October 2023, the anticipated order from CBP was not
awarded in September which reduced our expectations for the Group's full year
revenue.
However, the recent strengthening of the balance sheet, combined with our
order backlog and healthy sales pipeline, gives us confidence that we will
grow strongly into the second half and beyond.
Operational review
We operate in four distinct markets where there is the need to detect, quickly
and reliably, a range of different items being concealed in clothing. These
markets are driven by different factors and protect us against changing
political and economic circumstances.
Customs
Our Customs market revenue grew by 16%, underpinned by a major contract win
with a new Asian customer and another from a new Central American customs
agency, maintaining our momentum in this global market. In addition, we are
expecting further orders in H2 with existing Asian customers who are intending
to augment and/or upgrade their existing fleets of Thruvision units.
Retail Distribution
In Retail Distribution, the Group added new customers including GXO, the
global logistics provider, and TD Synnex, a global technology provider. We
continue to receive orders from existing customers in the UK and Europe and
expand our sales pipeline with new names in the US. With a new product launch
planned later this year, we expect to see further upgrading by existing
customers moving forward.
On 13 November 2023, Thruvision and Retail Economics published a report which
forecast that the overall theft would cost UK retailers some £7.9bn this
year, with employee theft accounting for some 40% of this total. Around two
thirds of those interviewed in the survey believe that over the past decade
the opportunity for crime in DCs has accelerated and 70% state that they have
seen an increase in organised crime activities in DCs.
Our technology specifically addresses this major problem for retailers and we
expect this report to stimulate further interest in Thruvision given the
proven, rapid return on investment that we can demonstrate.
Entrance Security
Given the general deterioration in the international security situation, we
have seen increased interest and sales activity in VIP locations, prisons,
critical national infrastructure sites, natural resources and high security
buildings. This interest is driven by the heightened threat, once more, of
weapons and explosives being brought into facilities, and the fact that
Thruvision is recognised as a fully proven means of detecting such items at a
safe distance.
We secured new customers in Africa and Asia and have seen further order flow
from existing Middle East customers in H1 and since the period end. The
current level of sales enquiries suggest that this is set to continue into the
second half.
Encouraged by this broadening demand, we are accelerating the rate at which we
sign-up regional VARs, focusing on those that new team members have worked
with successfully in the past. This ensures that we can be confident that
these new partners bring strong relationships with organisations we wish to
focus on and excellent technical capability in terms of supporting our
equipment in the field once deployed.
Aviation
With a formal change in US Government policy now in progress, US airports are
soon to be required to upgrade their approach to the security screening of
staff as they go to work on the "airside" of an airport. Although in the early
stages of development, this opportunity is expected to mature over the next
two years and, based on the four years of operational experience we have
gained with Seattle Tacoma International Airport, we are very well placed to
provide approved technology to meet this requirement.
Although we have an established solution for security screening of employees
in airports in the US, we require formal US Government Transportation Security
Administration accreditation to compete with airport body scanners for the
passenger screening market. We started this process in 2020 and, after several
COVID-related delays, it has now restarted. Some further progress has been
made although this remains a protracted process.
Product R&D and Intellectual Property ('IP')
We remain on track to launch our next generation camera range early in 2024.
This will provide an upgraded hardware platform in addition to new software
functionality which will be offered on a chargeable annual licence basis.
Financial review
Summary
Revenue for the six months ended 30 September 2023 was up 28% to £3.5 million
(H1 2023: £2.8 million) principally driven by significant growth in Entrance
Security sales. On a constant currency basis revenue was up 29%.
Adjusted EBITDA loss improved by 11% or £0.2 million to £1.4 million (H1
2023: loss £1.6 million), with adjusted gross profit growth up £0.5 million
to £1.9 million (H1 2023: £1.4 million) more than offsetting overheads which
were up, as planned, by £0.3 million.
Adjusted gross margin improved by 5pp to 53.9% (H1 2023: 48.9%) driven by a
pricing mix benefit. Statutory gross margin was up 5.9pp to 45.7%. Operating
loss was £1.6 million (H1 2023: loss £1.9 million).
Cash as at 30 September 2023 was £2.4 million (31 March 2023: £2.8 million),
with cash as at 17 November 2023 of
£4.3 million. Trade and other receivables were £2.9 million (31 March 2023:
£4.3 million) and reflect the receipt of all outstanding balances at 31 March
from CBP during the period offset by recent sales. Cash and the balance
sheet more generally have been strengthened following the fundraise on 26
October 2023.
Revenue
Revenue is split between the two principal activities below:
6 months ended 6 months ended Year ended
30 September
30 September
31 March
2023
2022
2023
£'000 £'000 £'000
Product 3,404 2,364 11,782
Support and Development 141 407 638
Total 3,545 2,771 12,420
Revenue is split by market sector and geographical region below:
6 months ended 6 months ended Year ended
30 September
30 September
31 March
2023
2022
2023
Revenue by market sector £'000 £'000 £'000
Retail Distribution 799 1,025 2,429
Customs 1,978 1,699 9,165
Aviation 6 12 246
Entrance Security 762 35 580
Total 3,545 2,771 12,420
6 months ended 6 months ended Year ended
30 September
30 September
31 March
2023
2022
2023
Revenue by geographical region £'000 £'000 £'000
UK and Europe 974 990 2,249
Americas 235 1,759 9,223
Rest of World 2,336 22 948
Total 3,545 2,771 12,420
Revenue was adversely impacted by translational exchange as the GBP
depreciated against the US$ and decreased revenue by approximately £0.03
million, compared to the prior year average exchange rate. This resulted in
constant currency growth in revenue of 29% and reported revenue growth of 28%.
Gross profit
Adjusted gross profit improved by £0.5 million with a volume impact of £0.3
million and mix impact of £0.2 million.
Adjusted gross margin improved by 5.0pp to 53.9% (H1 2023: 48.9%) and
reflected the positive price mix. Statutory gross margin was 5.9pp higher at
45.7% (H1 2023: 39.8%) also reflecting operational leverage.
6 months ended 6 months ended Year ended
30 September
30 September
31 March
2023
2022
2023
£'000 £'000 £'000
Revenue 3,545 2,771 12,420
Adjusted gross profit 1,912 1,356 6,401
Adjusted gross margin 53.9% 48.9% 51.5%
Statutory gross profit 1,621 1,104 5,837
Statutory gross margin 45.7% 39.8% 47.0%
Administrative expenses
Administrative expenses increased by 6% to £3.2 million with overheads up by
13% to £3.0 million. As well as overheads, administrative expenses include
share-based payment charges or credits, depreciation and amortisation and
impairment of intangible assets. Overheads as a proportion of sales were 86%
(H1 2023: 98%; 2023: 49%) reflecting the growth and phasing of revenue and
continued tight control.
Higher sales and marketing expenditure was impacted by higher sales commission
resulting from the growth in orders. Management costs decreased with one-off
CFO replacement costs in the prior period, whilst PLC costs were up due to
higher insurance costs. Property and administration costs were higher
resulting mainly from additional finance team headcount supporting growth in
the business.
Adjusted overheads are analysed as follows:
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2023 2022 2023
£'000 £'000 £'000
Sales and marketing 1,122 1,085 2,215
Engineering 607 589 1,270
Management 466 666 1,135
PLC costs 414 354 829
Property and administration 307 191 417
Bonus 47 20 458
Foreign exchange losses / (gains) 81 (203) (198)
Overheads 3,044 2,702 6,126
Depreciation and amortisation 205 238 569
Share based payment (credit) / charge (72) 51 96
Impairment of intangible assets - - 36
Administrative expenses 3,177 2,991 6,827
Loss before and after tax and loss per share
Adjusted loss before tax of £1.6 million improved by 11% (H1 2023: loss £1.8
million) with statutory loss before tax of £1.6 million improving by 17% (H1
2023: loss £1.9 million).
Statutory loss after tax improved by 18% to a loss of £1.5 million with the
adjusted loss after tax of £1.6 million improving by 11% (H1 2023: loss £1.8
million).
The loss per share and adjusted loss per share were 1.01 pence and 1.06 pence
respectively (H1 2023: loss per share and adjusted loss per share of 1.23
pence and 1.19 pence respectively) and reflected the movements in adjusted and
statutory loss after tax.
Cash flow
The decrease in cash and cash equivalents of £0.4 million to £2.4 million at
30 September 2023 (30 September 2022: £1.1 million, 31 March 2023: £2.8
million) was driven by an operating cash outflow before working capital of
£1.4 million partly offset by a net working capital inflow of £1.0 million
and an R&D tax credit received of £0.4m together with investing outflows
and financing outflows of £0.2 million each.
Movements in working capital in the period were:
· Trade and other receivables decreased by £1.5 million, principally driven by
cash received from CBP of £2.7 million.
· Increased inventory to support order backlog to be delivered in the second
half of the year resulted in a £0.3 million outflow.
· A decrease in trade and other payables resulted in an outflow of £0.2
million. Trade creditors decreased due to the timing of stock purchases.
On 26 October 2023, the Group completed a placing of 13,617,021 new ordinary
shares of 23.5 pence per share raising £3.2 million of gross proceeds. The
net proceeds of the placing will be used for continued investment in the
Group's sales and marketing capability and delivering key new software
functionality. It will also provide the Group with additional working capital
flexibility and strengthen the Group's balance sheet.
Other
A limited programme of share purchases by the Thruvision plc EBT commenced on
1 April 2023 with the purpose of partly satisfying future employee exercises
of share options. During the period 455,029 shares in the Group were
purchased by the EBT for total consideration of £119,000.
Consolidated income statement
6 months ended 6 months ended Year ended
30 September 2022 30 September 2022((1)) 31 March
2023
Unaudited Unaudited Audited
Notes £'000 £'000 £'000
Revenue 2 3,545 2,771 12,420
Cost of sales (1,924) (1,667) (6,583)
Gross profit 1,621 1,104 5,837
Administrative expenses (3,177) (2,991) (6,827)
Operating loss (1,556) (1,887) (990)
Financial income 25 11 26
Finance costs (37) (16) (15)
Loss before tax (1,568) (1,892) (979)
Taxation credit 86 89 174
Loss for the period (1,482) (1,803) (805)
Loss per share
Loss per share - basic and diluted 3 (1.01p) (1.23p) (0.55p)
All operations are continuing.
((1) ) As restated see note 5 to the interim financial statements.
Consolidated statement of comprehensive income
6 months ended 6 months ended Year ended
30 September 2023 30 September 2022 31 March 2023
Unaudited Unaudited Audited
£'000 £'000 £'000
Loss for the period attributable to owners of the parent (1,482) (1,803) (805)
Other comprehensive loss - items that may be subsequently reclassified to
profit or loss:
Exchange differences on retranslation (24) (45) (50)
of foreign operations
Total comprehensive loss attributable to owners of the parent (1,506) (1,848) (855)
Consolidated statement of financial position
at 30 September 2023
30 September 2023 30 September 2022 31 March 2023
Unaudited Unaudited Audited
Note £'000 £'000 £'000
Assets
Non-current assets
Property, plant and equipment 1,210 962 1,173
Other intangible assets 116 140 109
1,326 1,102 1,282
Current assets
Inventories 3,895 4,772 3,639
Trade and other receivables 2,851 3,813 4,342
Current tax receivable 81 302 375
Cash and cash equivalents 2,372 1,091 2,810
9,199 9,978 11,166
Total assets 10,525 11,080 12,448
Current liabilities
Trade and other payables (2,493) (2,399) (2,690)
Lease liabilities (132) (158) (121)
Provisions (102) (206) (107)
(2,727) (2,763) (2,918)
Net current assets 6,472 7,215 8,248
Non-current liabilities
Trade and other payables (54) (69) (72)
Lease liabilities (557) (449) (604)
Provisions (38) (38) (38)
(649) (556) (714)
Total liabilities (3,376) (3,319) (3,632)
Net assets 7,149 7,761 8,816
Equity
Share capital 4 1,474 1,472 1,472
Share premium 352 308 325
Capital redemption reserve 163 163 163
Translation reserve (13) 16 11
Retained earnings 5,173 5,802 6,845
Total equity attributable to owners of the Company 7,149 7,761 8,816
Consolidated statement of changes in equity (unaudited)
Share capital £'000 Share premium £'000 Capital redemption reserve £'000 Translation reserve £'000 Retained earnings £'000 Total equity
£'000
At 31 March 2022 1,466 201 163 61 7,554 9,445
Shares issued 6 107 - - - 113
Share based payment charge - - - - 51 51
Transactions with shareholders 6 107 - - 51 164
Loss for the period - - - - (1,803) (1,803)
Other comprehensive loss - - - (45) - (45)
Total comprehensive loss - - - (45) (1,803) (1,848)
At 30 September 2022 1,472 308 163 16 5,802 7,761
Shares issued - 17 - - - 17
Share based payment charge - - - - 45 45
Transactions with shareholders - 17 - - 45 62
Profit for the period - - - - 998 998
Other comprehensive expense - - - (5) - (5)
Total comprehensive (loss)/income - - - (5) 998 993
At 31 March 2023 1,472 325 163 11 6,845 8,816
Shares issued 2 27 - - - 29
Purchase of own shares - - - - (119) (119)
Share based payment credit - - - - (71) (71)
Transactions with shareholders 2 27 - - (190) (161)
Loss for the period - - - - (1,482) (1,482)
Other comprehensive loss - - - (24) - (24)
Total comprehensive loss - - - (24) (1,482) (1,506)
At 30 September 2023 1,474 352 163 (13) 5,173 7,149
Consolidated statement of cash flows
6 months ended 6 months ended Year ended
30 September 2023 30 September 2022 31 March 2023
Unaudited Unaudited Audited
£'000 £'000 £'000
Operating activities
Loss after tax (1,482) (1,803) (805)
Adjustments for:
Taxation credit (86) (89) (174)
Financial income (25) (10) (26)
Finance costs 37 16 15
Depreciation of property, plant and equipment 227 258 619
Profit on disposal of property, plant & equipment - (10) (10)
Amortisation of intangible assets 9 10 20
Impairment of intangible assets - - 36
Share-based payment (credit) / charge (72) 51 96
Operating cash outflow before changes in working capital and provisions (1,392) (1,577) (229)
Decrease / (increase) in trade and other receivables 1,491 (1,811) (2,360)
Increase in inventories (256) (904) (183)
(Decrease) / increase in trade and other payables (191) 26 321
(Decrease) / increase in provisions (5) 28 (71)
Cash utilised in operations (353) (4,238) (2,522)
Net income taxes received 380 - -
Net cash inflow / (outflow) from operating activities 27 (4,238) (2,522)
Investing activities
Purchase of property, plant & equipment (241) (26) (37)
Purchase of intangible assets (18) (70) (86)
Proceeds from disposal of property, plant and equipment - 11 11
Interest received 25 10 26
Net cash outflow from investing activities (234) (75) (86)
Financing activities
Proceeds from issues of shares 29 93 130
Purchase of own shares (119) - -
Payments on principal portion of lease liabilities (93) (81) (180)
Other finance costs (12) - -
Interest paid on lease liabilities (23) (4) (15)
Net cash outflow from financing activities (218) (89) (65)
Net decrease in cash and cash equivalents (425) (4,305) (2,673)
Cash and cash equivalents at beginning of the period 2,810 5,441 5,441
Effect of foreign exchange rate changes (13) (45) 42
Cash and cash equivalents at end of the period 2,372 1,091 2,810
Notes to the financial statements
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 2023 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 2023.
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 20 July 2023 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 2023 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 2023 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 2023.
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 2023 Annual Report available on the
Group's website: www.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
£1.6 million (H1 2023: £1.9 million; FY 2023: £1.0 million). As at 30
September 2023 the Group had net current assets of £6.5 million (30 September
2022: £7.2 million; 31 March 2023: £8.2 million) and cash and cash
equivalents of £2.4 million (30 September 2022: £1.1 million; 31 March 2023:
£2.8 million).
The Board has reviewed cash flow forecasts for the period up to and including
31 December 2024. 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, other than delivery of existing backlog, and certain
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 31 December 2024 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)
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, sales and marketing,
property and administration, management and PLC costs, with the split of costs
as shown in the Financial Review on page 6.
Analysis of revenue by customer
There have been two (H1 2023: two; FY 2023: one) individually material
customer(s) (each comprising in excess of 10% of revenue) during the period.
These customers individually represented £1,885k and £440k of revenue (H1
2023: £1,335k and £415k, FY 2023: £8,268k).
The Group's revenue by market sector, geographical location and type is
detailed below:
6 months ended 6 months ended Year ended
30 September
30 September
31 March
2023
2022
2023
Revenue by market sector £'000 £'000 £'000
Retail Distribution 799 1,025 2,429
Customs 1,978 1,699 9,165
Aviation 6 12 246
Entrance Security 762 35 580
Total 3,545 2,771 12,420
6 months ended 30 September 2023 6 months ended 30 September 2022 Year ended 31 March
2023
Unaudited Unaudited Audited
Revenue by geographical location £'000 £'000 £'000
UK and Europe 974 990 2,249
Americas 235 1,759 9,223
Rest of World 2,336 22 948
3,545 2,771 12,420
6 months ended 6 months ended Year ended
30 September
30 September
31 March
2023
2022
2023
Revenue by type £'000 £'000 £'000
Product 3,404 2,364 11,782
Support and Development 141 407 638
Total 3,545 2,771 12,420
The Group's non-current assets by geography are detailed below:
30 September 2023 30 September 2022
31 March
2023
Unaudited Unaudited Audited
£'000 £'000 £'000
UK 1,110 1,037 1,027
United States of America 216 65 255
1,326 1,102 1,282
Notes to the financial statements (continued)
2. Segmental information (continued)
The Group's revenue by type is detailed below:
6 months ended 30 September 2023 6 months ended 30 September 2022 Year ended 31 March 2023
Unaudited Unaudited Audited
£'000 £'000 £'000
Revenue recognised at point in time 3,507 2,398 11,888
Revenue recognised over time - extended warranty and support revenue 38 373 532
3,545 2,771 12,420
3. Loss per share
6 months ended 6 months ended Year ended
30 September 2023 30 September 2022 31 March 2023
Unaudited Unaudited Audited
Loss after tax (£'000) (1,482) (1,803) (805)
Weighted average number of shares 147,292,757 147,097,721 147,138,774
Basic and diluted loss per share (pence) (1.01p) (1.23p) (0.55p)
The inclusion of potential Ordinary Shares arising from LTIPs and EMI Options
would be anti-dilutive. Basic and diluted loss per share has therefore been
calculated using the same weighted number of shares for each period.
4. Share capital
As 30 September 2023, there were 147,368,117 Ordinary Shares in issue (30
September 2022: 147,165,718;
31 March 2023: 147,247,239). The Thruvision Group Plc Employee Benefit Trust
held 455,029 shares in the Company (30 September 2022: nil; 31 March 2023:
nil).
On 26 October 2023, the Company issued 13,617,021 new Ordinary Shares of 1
penny each at a premium of 22.5 pence each as part of the placing for which
gross proceeds of £3.2 million was received. Following the placing,
161,015,138 Ordinary Shares were in issue.
5. Restatement
In the audited results for the year ended 31 March 2023, gross margin was
restated to correctly classify certain fixed costs and variable production
overheads including production staff costs and related overheads to cost of
sales from administrative expenses. The unaudited results for the six months
ended 30 September 2022 have been restated accordingly to ensure
comparability, with total costs reclassified from administrative expenses to
cost of sales of £0.3 million. There is no impact on operating profit,
basic and diluted loss per share or the Statement of Financial Position.
6. Post balance sheet events
On 26 October 2023, the Group concluded a placing of 23.5 pence per share
raising £3.2 million of gross proceeds and issuing 13,617,021 new Ordinary
Shares, including a significant strategic investment from Pentland Capital.
APPENDIX - ALTERNATIVE PERFORMANCE MEASURES ('APMs')
Policy
Thruvision uses adjusted figures as key performance measures in addition to
those reported under IFRS, as management believe these measures enable
management and stakeholders to assess the underlying trading performance of
the businesses as they exclude certain items that are considered to be
significant in nature and/or quantum.
The APMs are consistent with how the businesses' performance is planned and
reported within the internal management reporting to the Board. Some of these
measures are used for the purpose of setting remuneration targets.
The key APMs that the Group uses include adjusted measures for the income
statement together with adjusted cash flow measures. Explanations of how they
are calculated and how they are reconciled to an IFRS statutory measure are
set out below.
Adjusted measures
The Group's policy is to exclude items that are considered to be significant
in nature and/or quantum, where the item is volatile in nature and cannot be
directly linked to underlying trading, and where treatment as an adjusted item
provides stakeholders with additional useful information to better assess the
period-on-period trading performance of the Group.
The Group excludes certain items, which management have defined as:
- Share based payments charge or credit
- Impairments of intangible assets
Gross profit, excluding production overheads is used to enable a like-for-like
comparison of underlying sales profitability. Production overheads are
excluded due to changes in product mix and investments in the production team
which have improved capacity and therefore changes the labour and overhead
absorption rates. This is represented by adjusted gross profit.
Based on the above policy, the adjusted performance measures are derived from
the statutory figures as follows:
a) Adjusted gross profit
6 months ended 6 months ended Year ended
30 September 2023 30 September 2022 31 March 2023
Unaudited Unaudited Audited
£'000 £'000 £'000
Gross profit 1,621 1,104 5,837
Add back:
Production overheads 291 252 564
Adjusted gross profit 1,912 1,356 6,401
b) Adjusted EBITDA
6 months ended 6 months ended Year ended
30 September 2023 30 September 2022 31 March 2023
Unaudited Unaudited Audited
£'000 £'000 £'000
Statutory operating loss (1,556) (1,887) (990)
Add back:
Depreciation and amortisation 236 268 639
Impairment of intangible assets - - 36
Share-based payment (credit) / charge (72) 51 96
Adjusted EBITDA (1,392) (1,568) (219)
c) Adjusted loss before tax
6 months ended 6 months ended Year ended
30 September 2023 30 September 2022 31 March 2023
Unaudited Unaudited Audited
£'000 £'000 £'000
Statutory loss before tax (1,568) (1,892) (979)
Add back:
Impairment of intangible assets - - 36
Share-based payment (credit) / charge (72) 51 96
Adjusted loss before tax (1,640) (1,841) (847)
d) Adjusted loss per share
6 months ended 6 months ended Year ended
30 September 2023 30 September 2022 31 March 2023
Unaudited Unaudited Audited
£'000 £'000 £'000
Statutory loss after tax (1,482) (1,803) (805)
Add back:
Impairment of intangible assets - - 36
Share-based payment (credit) / charge (72) 51 96
Adjusted loss after tax (1,554) (1,752) (673)
Weighted average number of shares 147,292,757 147,097,721 147,138,774
Statutory loss per share (pence) (1.01) (1.23) (0.55)
Adjusted loss per share (pence) (1.06) (1.19) (0.46)
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR DDLFFXFLLFBXRecent news on Thruvision
See all newsREG - Thruvision Group PLC - Year-end trading update
AnnouncementREG - Thruvision Group PLC - WalkTHRU completes operational test and evaluation
AnnouncementREG - Thruvision Group PLC - Next generation product range & software launched
AnnouncementREG - Thruvision Group PLC - Sales Progress Update
AnnouncementREG - Thruvision Group PLC Schroders PLC - Holding(s) in Company
Announcement