REG - Thruvision Group PLC - Interim Results
24/10/2024 07:00
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RNS Number : 3864J Thruvision Group PLC 24 October 2024
24 October 2024
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 2024 (H1 2025 financial year -
H1 2025).
Highlights
· Revenue of £1.9 million (H1 2024: £3.5 million).
o Retail Distribution revenue doubled to £1.6 million (H1 2024: £0.8
million) and comprised 85% of revenue.
o Customs revenue of £0.1 million (H1 2024: £2.0 million) reflected the
absence of any material Customs orders, comparable period benefitted from a
single £1.9 million order from an Asian Customs agency.
o Entrance Security revenue of £0.2 million (H1 2024: £0.8m).
· Adjusted gross margin(1) down 3.5pp to 50.4% (H1 2024: 53.9%)
reflecting the positive price mix in the prior period.
· Adjusted EBITDA(1) loss of £2.1 million (H1 2024: loss of £1.4
million).
· Cash at 30 September 2024 was £1.8 million (31 March 2024: £4.1
million).
· Order backlog currently at £0.5 million with a healthy pipeline
across all markets and with significant near term opportunities in Entrance
Security and Retail Distribution.
· The Board expects revenue for the full year ending 31 March 2025
to be approximately £9 million.
H1 2025 H1 2024
Unaudited Unaudited
£m
£m
Change
Adjusted measures(1):
Adjusted gross profit 1.0 1.9 (49%)
Adjusted gross margin 50.4% 53.9% (3.5pp)
Adjusted EBITDA loss (2.1) (1.4) (51%)
Adjusted loss before tax (2.4) (1.6) (45%)
Statutory measures:
Revenue 1.9 3.5 (45%)
Gross profit 0.7 1.6 (59%)
Gross margin 34.0% 45.7% (11.7pp)
Operating loss (2.5) (1.6) (61%)
Loss before tax (2.5) (1.6) (58%)
( )
(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 on page 16.
Commenting on the results, Tom Black, Executive Chairman of Thruvision, said:
"Although our overall reduction in Group revenues is disappointing, our
strategy remains unchanged as we seek to build on our international position
as a leading provider of walk-through screening solutions. It is gratifying
to see good progress in Retail Distribution which has the potential to be our
largest single market and our revenue base now derives from a broader range of
international customers which should smooth revenue volatility going forward.
"Much effort has been expended to enhance our sales capability in the past
year, including entering into new sales partnerships. We are encouraged by the
quality of our pipeline, which contains a number of significant opportunities,
any of which could be transformational. Converting these to revenue in a
timely manner is our number one priority."
For further information please contact:
Thruvision Group
plc
+44 (0)1235 425
400
Tom Black, Executive Chairman
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
Revenue was £1.9 million (H1 2024: £3.5 million). The current order backlog
is £0.5 million and is expected to be delivered during the second half of the
year (H1 2024: £1.0 million). The sales pipeline contains significant
tenders, a number of which are expected to contribute to second half revenues.
Cash at 30 September 2024 was £1.8 million (31 March 2024: £4.1 million) and
trade receivables were £0.9 million (31 March 2024: £2.0 million).
In line with the Group's strategy, we now have approximately 85% of revenue in
the period deriving from Retail Distribution sales, which doubled relative to
the comparable period and, alongside healthy levels of repeat business,
included orders from new customers John Lewis and DP World.
This pleasing progress in Retail Distribution was offset by the absence of any
material Customs or Entrance Security orders, whereas the comparable period
benefitted from a single £1.9 million order from an Asian Customs agency. In
Aviation, we achieved our first order for aviation worker screening to a US
regional airport since the Transportation Security Administration (TSA) issued
its National Mandate on the subject, and customer interest levels remain
elevated in this arena.
Strategic update
Our strategy remains unchanged as we seek to build on our position as a
leading provider of walk-through screening solutions. Our detection
performance, combined with high-throughput rates of people being screened
remains class-leading. Our competitors mostly use active technology (i.e. they
scan people with radiation) whereas our systems are passive which brings
significant benefits in terms of regulatory compliance and acceptance.
Our systems are used principally for security applications and for the
detection and deterrence of theft and contraband smuggling. The high-profile
growth in security incidents throughout the world combined with high levels of
lawlessness in most developed countries provides significant market drivers
for our solutions. In Retail Distribution our principal mission has always
been to detect and deter theft. However, we are now seeing "inbound" weapons
and narcotics detection grow to rival theft reduction as a principal driver of
demand in Europe as well as the US.
As we seek to scale the business, we have been appointing Value-Added
Resellers (VARs) to complement our existing direct sales approach. So far, we
have appointed 10 VARs in different geographic territories in addition to
Sensormatic which is a specialist technology provider to the retail sector
globally. Whilst these relationships are still at an early stage and yet to
deliver increased revenue, our sales pipeline has many new leads which has
increased our potential addressable market significantly.
The market for our technology remains strong globally and macro trends seem
only to be driving additional demand. Our challenge is to grow our sales and
marketing capability to match our technological excellence and, whilst we
certainly have work do in this regard, it is now unequivocally our highest
priority.
Current trading and outlook
Looking forward, we have a healthy pipeline across all our markets, with
particularly significant near-term opportunities in Entrance Security and
Retail Distribution. We are also seeing growth in our sales pipeline resulting
from our recently signed channel partnership with Sensormatic, in particular,
adding many opportunities across Europe. We intend to sign additional major
channel partners in the future.
Besides the steady growth in smaller orders which characterised the first
half, we are actively pursuing a number of very significant opportunities, any
of which could materially extend our order backlog. Full year revenue
outturn is dependent upon the timing of significant contract awards, which is
of course unpredictable. However, inventory lead times mean that there is
likely to be a modest slippage of revenue into the next financial year, which
is why the Board announced on 14 October 2024 that it expects revenue for the
full year ending 31 March 2025 to be approximately £9 million (FY24: £7.8
million).
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 this diversity provides a degree
of resilience.
Customs
We continued to work with our two new customers in Central America and
South-East Asia to ensure that their systems were fully implemented and
operating optimally and high-profile seizures have resulted. Similarly, we
continue to engage with US Customs and Border Protection (CBP) and we remain
hopeful of additional orders from this important customer in the future.
Although we lacked orders in the period, interest levels are strong, and we
are very confident that Customs will remain an important market for us.
Retail Distribution
This was a strong period for our Retail business, and we saw new orders in
both Europe and the US. Adidas implemented further WalkTHRU lanes in the US
and ID Logistics became a new customer in early October. The global logistics
company DP World placed their first order with us in Europe and numerous
existing customers added to their Thruvision fleet. In addition, we currently
have two major trials underway. One is with a global online retailer and the
other with a global logistics provider and these both have significant
potential for future sales.
Our retail customers are increasingly using our solutions to check inbound
staff for concealed weapons and narcotics whilst employing the same systems
for outbound staff theft detection. This combination is extremely
cost-effective and provides additional weight to the already compelling return
on investment our customers achieve.
Entrance Security
Although this was a quiet period for our Entrance market in terms of completed
sales, we did continue to supply the Dutch Prison Service who are now an
important customer and a recognised leader in prison estate security. Partly
as a result of our success in the Netherlands we are seeing increased interest
from prison services elsewhere in Mainland Europe and are therefore hopeful
that this will develop into another important market for us.
We also have significant Entrance Security opportunities within our sales
pipeline driven by the generally deteriorating security situation across the
world but in the Middle East particularly where we have our most significant
opportunities.
Aviation
As noted in previous reports, the Transportation Security Administration (TSA)
in the US has recently mandated increased security screening of all airport
employees as they transition from landside to airside and have confirmed
publicly that our solution is compliant with this new mandate. We are now
seeing interest from many airports in the US in using Thruvision to comply
with this mandate and received our first order from a regional airport for
this application. Ongoing discussions and on-site trials underpin our
expectation of additional sales in this area.
Product R&D and Intellectual Property ('IP')
We successfully brought our new 71 Series to market in the last quarter of
FY24, and this accounted for the majority of our sales during the half. This
introduced a number of new software features which have improved both the
detection performance of the camera and the usability from the operator's
point of view. We continue to innovate to reduce the build cost of our systems
and to introduce new variants which, whilst remaining highly performant, are
more affordable.
Our intellectual property is our greatest asset, and we continue to submit
patent applications to extend our already significant patent portfolio.
Reassuringly, we have not seen anything of concern in the market from our
competitors and we remain confident that our technological advantage remains
significant.
Financial review
Summary
Revenue for the six months ended 30 September 2024 was down 45% to £1.9
million (H1 2024: £3.5 million), with approximately 85% of the revenue in the
period deriving from Retail Distribution sales, which doubled relative to the
prior period. This was offset by the absence of any material Customs orders,
whereas the comparable period benefitted from a single £1.9 million order
from an Asian Customs agency.
The Adjusted EBITDA loss increased by £0.7 million to £2.1 million (H1 2024:
loss £1.4 million), with adjusted gross profit down by £0.9 million to £1.0
million (H1 2024: £1.9 million) and tight cost control resulting in overheads
decreasing by 9% to £2.8 million (H1 2024: £3.0 million).
Adjusted gross margin was lower by 3.5pp to 50.4% (H1 2024: 53.9%) and was in
line with our expectations reflecting the particularly positive pricing mix in
the prior period. Statutory gross margin decreased by 11.7pp to 34.0%
primarily due to the decrease in volumes. Operating loss was £2.5 million (H1
2024: loss £1.6 million).
Cash as at 30 September 2024 was £1.8 million (31 March 2024: £4.1 million).
Trade and other receivables were £1.3 million (31 March 2024: £2.2 million).
The Group has an undrawn overdraft facility of £0.95 million available for
working capital requirements.
Revenue
Revenue is split between the two principal activities below:
6 months ended 6 months ended Year ended
30 September
30 September
31 March
2024
2023
2024
£'000 £'000 £'000
Product 1,748 3,404 7,394
Support and Development 187 141 420
Total 1,935 3,545 7,814
Revenue is split by market sector and geographical region below:
6 months ended 6 months ended Year ended
30 September
30 September
31 March
2024
2023
2024
Revenue by market sector £'000 £'000 £'000
Retail Distribution 1,638 799 1,924
Customs 83 1,978 3,148
Aviation 20 6 23
Entrance Security 194 762 2,719
Total 1,935 3,545 7,814
6 months ended 6 months ended Year ended
30 September
30 September
31 March
2024
2023
2024
Revenue by geographical region £'000 £'000 £'000
UK and Europe 1,732 837 2,436
Americas 198 235 1,998
Middle East and Africa 4 447 845
Asia Pacific 1 2,026 2,535
Total 1,935 3,545 7,814
Gross profit
Adjusted gross profit decreased by £0.9 million with a volume impact of £0.8
million and mix impact of £0.1 million.
Adjusted gross margin decreased by 3.5pp to 50.4% (H1 2024: 53.9%), was in
line with our expectations reflecting the positive price mix in the prior
period. Statutory gross margin was 11.7pp lower at 34.0% (H1 2024: 45.7%)
reflecting the impact of lower volumes.
6 months ended 6 months ended Year ended
30 September
30 September
31 March
2024
2023
2024
£'000 £'000 £'000
Revenue 1,935 3,545 7,814
Adjusted gross profit 975 1,912 4,141
Adjusted gross margin 50.4% 53.9% 53.0%
Statutory gross profit 658 1,621 3,522
Statutory gross margin 34.0% 45.7% 45.1%
Administrative expenses
Administrative expenses were flat at £3.2 million. Overheads were down by
£0.3 million (9%) to £2.8 million. As well as overheads, administrative
expenses include share-based payments and depreciation and amortisation.
Overheads as a proportion of sales were 144% (H1 2024: 86%) with lower sales
volumes only partly offset by continued tight cost control.
Overhead costs continued to be closely controlled during the period with
salary inflation absorbed by reductions elsewhere. Sales, marketing and
support expenditure was down due to lower sales commissions (lower order
intake) and a reduction of two in headcount.
Adjusted overheads are analysed as follows:
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2024 2023 2024
£'000 £'000 £'000
Sales, marketing and support 1,013 1,272 2,454
Engineering 506 457 1,067
Management 475 466 949
PLC costs 411 414 884
Property and administration 271 307 580
Bonus 59 47 89
Foreign exchange losses 46 81 80
Overheads 2,781 3,044 6,103
Depreciation and amortisation 267 205 465
Share based payment charge/(credit) 113 (72) (50)
Administrative expenses 3,161 3,177 6,518
Loss before and after tax and loss per share
Adjusted loss before tax of £2.4 million increased by 45% (H1 2024: loss
£1.6 million) with statutory loss before tax of £2.5 million increasing by
61% (H1 2024: loss £1.6 million).
Statutory loss after tax increased by 63% to a loss of £2.4 million (H1 2024:
£1.5 million) with the adjusted loss after tax of £2.3 million increasing by
48% (H1 2024: loss £1.6 million).
The loss per share and adjusted loss per share were 1.51 pence and 1.44 pence
respectively (H1 2024: loss per share and adjusted loss per share of 1.01
pence and 1.06 pence respectively) and reflected the movements in adjusted and
statutory loss after tax.
Cash flow
The decrease in cash and cash equivalents of £2.3 million to £1.8 million at
30 September 2024 from £4.1 million at 31 March 2024 was driven by an
operating cash outflow before working capital of £2.1 million with net other
outflows of £0.2 million.
The impact of working capital in the period was neutral and reflected:
· Trade and other receivables inflow of £0.95 million driven by lower sales
volumes.
· Increased inventory resulted in a £0.85 million outflow caused by lower sales
volumes.
· An outflow of £0.1 million from payables and provisions due to timing of
purchases.
The Group has an undrawn overdraft facility of £0.95 million with HSBC until
31 January 2025, reducing to £0.1 million until 31 May 2025. This is intended
to provide the Group with additional working capital flexibility (see page
12).
Other
During the period 575,555 shares (H1 2024: 455,029) in the Group were
purchased by the Employee Benefit Trust ("EBT") for a total consideration of
£99,000 (H1 2024: £119,000). The total number of shares held by the EBT at
30 September 2024 was 1,627,112 and, since the Board's target of buying enough
shares to partially settle exercises under the LTIP had been met, the Board
paused the purchase of further shares from September 2024.
Thruvision Group plc
Consolidated income statement
Six months ended 30 September 2024
6 months ended 6 months ended Year ended
30 September 2024 30 September 2023 31 March 2024
Unaudited Unaudited Audited
Notes £'000 £'000 £'000
Revenue 2 1,935 3,545 7,814
Cost of sales (1,277) (1,924) (4,292)
Gross profit 658 1,621 3,522
Administrative expenses (3,161) (3,177) (6,518)
Operating loss (2,503) (1,556) (2,996)
Financial income 56 25 109
Finance costs (38) (37) (62)
Loss before tax (2,485) (1,568) (2,949)
Taxation credit 70 86 103
Loss for the period (2,415) (1,482) (2,846)
Loss per share
Loss per share - basic and diluted 3 (1.51p) (1.01p) (1.86p)
All operations are continuing.
Consolidated statement of comprehensive income
Six months ended 30 September 2024
6 months ended 6 months ended Year ended
30 September 2024 30 September 2023 31 March 2024
Unaudited Unaudited Audited
£'000 £'000 £'000
Loss for the period attributable to owners of the parent (2,415) (1,482) (2,846)
Other comprehensive loss - items that may be subsequently reclassified to
profit or loss:
Exchange differences on retranslation 32 (24) (16)
of foreign operations
Total comprehensive loss attributable to owners of the parent (2,383) (1,506) (2,862)
Thruvision Group plc
Consolidated statement of financial position
at 30 September 2024
30 September 2024 30 September 2023 31 March 2024
Unaudited Unaudited Audited
Note £'000 £'000 £'000
Assets
Non-current assets
Property, plant and equipment 1,254 1,210 1,375
Other intangible assets 125 116 124
1,379 1,326 1,499
Current assets
Inventories 4,558 3,895 3,655
Trade and other receivables 1,264 2,851 2,229
Current tax receivable 61 81 99
Cash and cash equivalents 1,800 2,372 4,119
7,683 9,199 10,102
Total assets 9,062 10,525 11,601
Current liabilities
Trade and other payables (1,842) (2,493) (1,926)
Lease liabilities (240) (132) (151)
Provisions (29) (102) (52)
(2,111) (2,727) (2,129)
Net current assets 5,572 6,472 7,973
Non-current liabilities
Trade and other payables (98) (54) (109)
Lease liabilities (351) (557) (492)
Provisions (110) (38) (110)
(559) (649) (711)
Total liabilities (2,670) (3,376) (2,840)
Net assets 6,392 7,149 8,761
Equity
Share capital 4 1,611 1,474 1,611
Share premium 3,282 352 3,282
Capital redemption reserve 163 163 163
Translation reserve 27 (13) (5)
Retained earnings 1,309 5,173 3,710
Total equity attributable to owners of the Company 6,392 7,149 8,761
Thruvision Group plc
Consolidated statement of changes in equity (unaudited)
Six months ended 30 September 2024
Share capital £'000 Share premium £'000 Capital redemption reserve £'000 Translation reserve £'000 Retained earnings £'000 Total equity
£'000
At 1 April 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
Shares issued 137 2,930 - - - 3,067
Purchase of own shares - - - - (120) (120)
Share based payment charge - - - - 21 21
Transactions with shareholders 137 2,930 - - (99) 2,968
Loss for the period - - - - (1,364) (1,364)
Other comprehensive income - - - 8 - 8
Total comprehensive income/(loss) - - - 8 (1,364) (1,356)
At 31 March 2024 1,611 3,282 163 (5) 3,710 8,761
Shares issued - - - - - -
Purchase of own shares - - - - (99) (99)
Share based payment charge - - - - 113 113
Transactions with shareholders - - - - 14 14
Loss for the period - - - - (2,415) (2,415)
Other comprehensive income - - - 32 - 32
Total comprehensive income/(loss) - - - 32 (2,415) (2,383)
At 30 September 2024 1,611 3,282 163 27 1,309 6,392
Thruvision Group plc
Consolidated statement of cash flows
Six months ended 30 September 2024
6 months ended 6 months ended Year ended
30 September 2024 30 September 2023 31 March 2024
Unaudited Unaudited Audited
£'000 £'000 £'000
Operating activities
Loss after tax (2,415) (1,482) (2,846)
Adjustments for:
Taxation credit (70) (86) (103)
Financial income (56) (25) (109)
Finance costs 38 37 62
Depreciation of property, plant and equipment 273 227 500
Amortisation of intangible assets 21 9 26
Share-based payment charge/(credit) 113 (72) (50)
Operating cash outflow before changes in working capital and provisions (2,096) (1,392) (2,520)
Decrease in trade and other receivables 950 1,491 2,132
Increase in inventories (847) (256) (16)
Decrease in trade and other payables (68) (191) (745)
Decrease in provisions (23) (5) (55)
Cash utilised in operations (2,084) (353) (1,204)
Net income taxes received 108 380 378
Net cash (outflow)/ inflow from operating activities (1,976) 27 (826)
Investing activities
Purchase of property, plant & equipment (176) (241) (581)
Purchase of intangible assets (22) (18) (41)
Interest received 71 25 90
Net cash outflow from investing activities (127) (234) (532)
Financing activities
Proceeds from issue of shares - 29 3,243
Share issue costs - - (147)
Purchase of own shares (99) (119) (239)
Payments on principal portion of lease liabilities (73) (93) (143)
Interest paid on lease liabilities (26) (23) (50)
Other finance costs (10) (12) (12)
Net cash (outflow)/inflow from financing activities (208) (89) 2,652
Net (decrease)/increase in cash and cash equivalents (2,311) (425) 1,294
Cash and cash equivalents at beginning of the period 4,119 2,810 2,810
Effect of foreign exchange rate changes (8) (13) 15
Cash and cash equivalents at end of the period 1,800 2,372 4,119
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 2024 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 2024.
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 27 June 2024 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 2024 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 2024 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 2024.
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 2024 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
£2.5 million (H1 2024: £1.6 million). As at 30 September 2024 the Group had
net current assets of £5.6 million (31 March 2024: £8.0 million) including
cash and cash equivalents of £1.8 million (31 March 2024: £4.1 million). The
Group also has an overdraft facility of £0.95 million available until 31
January 2025, reducing to £0.1 million until 31 May 2025.
The Board has reviewed cash flow forecasts for the period up to and including
31 October 2025. These base case scenario 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 requires no funding in excess of currently
available facilities in the forthcoming 12-month period.
These forecasts are reliant upon the conversion of the sales pipeline in
volume and value in the next 12 months significantly ahead of that achieved in
the first half of the year. Whilst the Board has confidence that this is
achievable based upon the current breadth and depth of the pipeline, the
nature of our sales cycle is that orders may take longer than expected to
materialise, given geo-political, political and economic uncertainties across
several of our geographies and markets globally. In this downside scenario,
the business would potentially require funding in excess of currently
available facilities over the forthcoming 12-month period, and therefore the
existence of a material uncertainty that may cast significant doubt on the
Company's ability to continue as a going concern.
The Directors have a reasonable expectation that the Group has adequate
resources to continue operating for a period of at least 12 months from the
approval of these accounts, despite the uncertainty described above. 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 marketing and
support, property and administration, management and PLC costs, with the split
of costs as shown in the Financial Review on page 5.
Analysis of revenue by customer
There have been two (H1 2024: two; FY 2024: two) individually material
customers (each comprising in excess of 10% of revenue) during the period.
These customers individually represented £565k and £208k of revenue (H1
2024: £1,885k and £440k, FY 2024: £1,885k and £938k).
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
2024
2023
2024
Revenue by market sector £'000 £'000 £'000
Retail Distribution 1,638 799 1,924
Customs 83 1,978 3,148
Aviation 20 6 23
Entrance Security 194 762 2,719
Total 1,935 3,545 7,814
6 months ended 6 months ended Year ended
30 September
30 September
31 March
2024
2023
2024
Revenue by geographical region £'000 £'000 £'000
UK and Europe 1,732 837 2,436
Americas 198 235 1,998
Middle East and Africa 4 447 845
Asia Pacific 1 2,026 2,535
Total 1,935 3,545 7,814
6 months ended 6 months ended Year ended
30 September
30 September
31 March
2024
2023
2024
Revenue by type £'000 £'000 £'000
Product 1,748 3,404 7,394
Support and Development 187 141 420
Total 1,935 3,545 7,814
The Group derives its revenue from the provision of goods and services both at
a point in time and over time:
6 months ended 6 months ended Year ended
30 September
30 September
31 March
2024
2023
2024
Revenue by type £'000 £'000 £'000
Revenue recognised at point in time 1,859 3,507 7,727
Revenue recognised over time - extended warranty and support revenue 76 38 87
Total 1,935 3,545 7,814
Notes to the financial statements (continued)
2. Segmental information (continued)
The Group's non-current assets by geography are detailed below:
30 September 2024 30 September 2023
31 March 2024
Unaudited Unaudited Audited
£'000 £'000 £'000
UK 1,041 1,110 1,176
Europe 34 - -
United States of America 304 216 323
Total 1,379 1,326 1,499
3. Loss per share
6 months ended 6 months ended Year ended
30 September 2024 30 September 2023 31 March 2024
Unaudited Unaudited Audited
£'000 £'000 £'000
Loss after tax (2,415) (1,482) (2,846)
Weighted average number of shares outstanding (total in issue) 161,059,012 147,292,757 153,197,717
Less: weighted average number of shares owned by Employee Benefit Trust (1,418,953) (257,182) (522,781)
159,640,059 147,035,575 152,674,936
Basic and diluted loss per share (pence) (1.51p) (1.01p) (1.86p)
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 2024, there were 161,059,012 Ordinary Shares in issue (30
September 2023: 147,368,117;
31 March 2024: 161,059,012). The Thruvision Group Plc Employee Benefit Trust
held 1,627,112 Shares in the Company (30 September 2023: 455,029 Shares; 31
March 2024: 1,051,557 Shares).
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. The APMs
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. They reflect how the
business is measured and managed on a day-to-day basis.
In calculating Adjusted EBITDA loss, Adjusted loss before tax and Adjusted
loss per share, 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 and provide
supplementary information. This adjusted measure is termed Adjusted gross
profit. The use of Adjusted gross profit margin provides
the Board and management with a measure of direct product profitability
(pricing, direct costs of sale and directly allocable costs
including inventory provisions), without the impact that sales volumes can
have on the absorption of the more fixed production
overheads. It provides a useful measure of sales and procurement effectiveness
as a subset of topline profitability analysis and may
help investors understand and evaluate performance in the same way as the
Board and management. The metric is helpful to show
current trends in the Group's operations and is useful for like-for-like
comparisons of product profitability between periods.
These non-GAAP measures should not be considered in isolation or as a
substitute for the comparable GAAP (IFRS) measure and
may not be comparable with other companies. All APMs relate to the current
period results and the comparative period.
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 2024 30 September 2023 31 March 2024
Unaudited Unaudited Audited
£'000 £'000 £'000
Gross profit 658 1,621 3,522
Add back:
Production overheads 317 291 619
Adjusted gross profit 975 1,912 4,141
b) Adjusted EBITDA
6 months ended 6 months ended Year ended
30 September 2024 30 September 2023 31 March 2024
Unaudited Unaudited Audited
£'000 £'000 £'000
Statutory operating loss (2,503) (1,556) (2,996)
Add back:
Depreciation and amortisation 294 236 526
Share-based payment charge/(credit) 113 (72) (50)
Adjusted EBITDA (2,096) (1,392) (2,520)
c) Adjusted loss before tax
6 months ended 6 months ended Year ended
30 September 2024 30 September 2023 31 March 2024
Unaudited Unaudited Audited
£'000 £'000 £'000
Statutory loss before tax (2,485) (1,568) (2,949)
Add back:
Share-based payment charge/(credit) 113 (72) (50)
Adjusted loss before tax (2,372) (1,640) (2,999)
d) Adjusted loss per share
6 months ended 6 months ended Year ended
30 September 2024 30 September 2023 31 March 2024
Unaudited Unaudited Audited
£'000 £'000 £'000
Statutory loss after tax (2,415) (1,482) (2,846)
Add back:
Share-based payment charge/(credit) 113 (72) (50)
Adjusted loss after tax (2,302) (1,554) (2,896)
Weighted average number of shares 159,640,059 147,035,575 152,674,936
Statutory loss per share (pence) (1.51p) (1.01p) (1.86p)
Adjusted loss per share (pence) (1.44p) (1.06p) (1.90p)
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