Management accounts for the quarters ended 30 June 2023 and 31 March 2023

28 July 2023

ChallengerX plc
 (“ChallengerX”, “CX" or the "Company")

Management accounts for the quarters ended 30 June 2023 and 31 March 2023

ChallengerX  (AQUIS: CXS), the trading company with principal activity of employing both traditional and non-traditional marketing strategies to rapidly “professionalise” amateur and semi-professional sports clubs around the world  announces its unaudited management accounts reports for the quarters ended 30 June 2023 and 31 March 2023.

This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.

For further information, please contact:

Enquiries:

ChallengerX plc
John May, Chairman		[e-mail]
Stuart Adam, CFO		[e-mail]
First Sentinel Corporate AQSE Corporate Adviser Brian Stockbridge / Gabrielle Cordeiro		[phone]

Directors Statement

Introduction

ChallengerX plc (the “Company” or “ChallengerX”) is an investment company quoted on the Aquis Stock Exchange (“AQSE”) Growth Market. The Company was incorporated on 7 June 2021 and its shares were admitted to trading on 23 December 2021.

Activities during the periods

The company continued to advance its development of a platform for the promotion and marketing of sports clubs in both a traditional and non-traditional way. In particular the company worked hard on adding to its offerings for the upcoming soccer seasons starting in the Autumn.

In February 2023 the Company announced it had raised a total of GBP 250,000 (gross) from Aalto Capital AB, through the issue of 55,555,556 new ordinary shares pursuant to a subscription letter. The payment relating to the fundraise hasn’t yet been fully received by the Company. The outstanding amount at 30 June 2023 of £168,000 is included in “Trade and other receivables” on the Statement of Financial Position. As at the date of this report, the Company has still only received £82,000. The Company is in ongoing conversations with the investor to receive the remaining balance. The Managing Director of Aalto unfortunately died before this transaction could be completed which has delayed conversations.

The Directors confirm that this current shortfall in the fundraise does not impact the working capital position of the Company.

The Company had announced that it had granted Aalto Capital AB a total of 55,555,556 warrants to subscribe for new ordinary shares of GBP 0.001 each (‘Warrants’). The Warrants to be exercisable at 0.45 pence per ordinary share, and for a period of 5 years from the date of issue. Due to the non-completion of the subscription amount in a timely way these warrants may be withdrawn to the company’s Treasury.

Outlook

The development of the marketing platform as mentioned above will require more expenditure.  Additional funds will be sought for this. Meanwhile the company continues to supplement its income by applying itself to other project opportunities and will continue to review its business plan and strategy by looking at transactions in complimentary sectors that could lead even to a reverse transaction whilst keeping its establishment overheads as lean as possible.

John May

Chairman

Unaudited Statement of Comprehensive Income

for the quarters ended 30 June 2023 and 31 March 2023

	30 June2023	31 March2023
	£’000	£’000
Revenue		-
Administrative expenses	(61)	(46)
Operating loss	(61)	(46)
Loss before tax	(61)	(46)
Taxation	-	-
Loss for the period	(61)	(46)
Total comprehensive loss	(61)	(46)
(Loss) per share (pence) from continuing operations attributable toowners of the Company – Basic	(0.018)	(0.013)

Statement of Financial Position

As at quarters ended 30 June 2023 and 31 March 2023

	30 June 2023£’000	31 March 2023£’000
Current assets
Trade and other receivables	177	256
Cash and cash equivalents	48	31
Total current assets	225	287
Total assets	225	287
Current liabilities
Trade and other payables	55	56
Total current liabilities	55	56
Net assets	170	231
Capital and reserves
Share capital	343	343
Share premium	1,410	1,410
Retained earnings	(1,583)	(1,522)
Total equity	170	231

Statement of Changes in Equity

For the quarters ended 30 June 2023 and 31 March 2023

	Share capital	Share premium	Retained earnings	Total
	£’000	£’000	£’000	£’000
As at 31 December 2022	288	1,230	(1,476)	42
Allotment of ordinary shares	55	180	-	235
Loss for quarter ended 31 March 2023	-	-	(46)	(46)
Total Comprehensive Income	-	-	(46)	(46)
As at 31 March 2023	343	1,410	(1,522)	231
Allotment of ordinary shares	-	-	-	-
Loss for the quarter ended 30 June  2023	-	-	(61)	(61)
Total Comprehensive Income	-	-	(61)	(61)
As at 30 June 2023	343	1,410	(1,583)	170

Statement of Cash Flows

For the quarter ended 30 June 2023 and 31 March 2023

	30 June 2023	31 March 2023
	£’000	£’000
Cash from operating activities
Loss before tax	(61)	(46)
Adjustments for:
Decrease /(Increase) in trade and other receivables	79	(248)
(Decrease) in trade and other payables	(1)	(2)
Net cash generated /(used) in operating activities	17	(296)
Cash flows from financing activities
Proceeds from issue of shares (net of issue costs)	-	235
Net cash from financing activities	-	235
Net cash flow for the period	17	(61)
Cash and cash equivalents at beginning of period	31	92
Cash and cash equivalents at end of period	48	31
Net change in cash and cash equivalents	17	(61)
Cash and cash equivalents comprise:
Cash at bank and in hand	48	31
	48	31

Notes to the financial statements

1. General information

ChallengerX plc is a public limited company limited by shares and was incorporated in England on 7 June 2021 with company number 13440398. Its registered office is 16 Great Queen Street, London, WC2B 5DG.

The Company’s shares are traded on the Aquis Stock Exchange Growth Market under symbol CXS and ISIN number

GB00BMD0WG01.

The Company was first incorporated on 7 June 2021.

The information for periods ended 30 June 2023 and 31 March 2023 are unaudited.

2. Basis of Preparation

The quarterly management accounts of ChallengerX plc have been prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, “The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland” (“FRS 102”) and the Companies Act 2006.

These management accounts are prepared on a going concern basis, under the historical cost convention, as modified by the recognition of listed investments at fair value.

The financial statements are presented in Pounds Sterling, which is the Company’s presentation and functional currency.

The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgment and complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 3 to the financial statements.

The financial statements have been prepared on the historical cost basis and are presented in £’000 unless otherwise stated.

3. Going Concern

As at 30 June 2023, the Company had cash of £48,000. As a newly established trading business, the Company has limited operating cash flow and is dependent on the performance of its trading and its cash balances for its working capital requirements. As at the date of this report, the Company had approximately £26,500 cash at bank.

The Directors continue to seek recovery of the sequestered funds held by the Administrator of it’s subsidiary, SportsX, which are believed to amount to approximately £0.6m.

For this reason, it continues to adopt the going concern basis in preparing the financial statements.

4. Earnings per share

	30 June 2023	31 March 2023
Earnings	£’000	£’000
Loss for the quarters ended	(61)	(46)
Number of shares
Number of shares for the purposes of basic and diluted earnings per share	343,140,556	343,140,556
Earnings per share (pence)	(0.018)	(0.013)

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