Half-year Report and Convertible Loan

RNS Number : 2322B
Catenae Innovation PLC
30 September 2022
 

30 September 2022

Catenae Innovation PLC

("Catenae", the "Company" or the "Group")

 

Half Year Results

Convertible Loan

 

 

Catenae Innovation PLC (AIM: CTEA), the AIM quoted provider of digital media and technology, announces its half-yearly report for the six months ended 31 March 2022.

 

Financial overview

 

· Loss of £287,168 in the period under review (2021: £586,798) with revenues of £17,500 (2021: £12,308).

· Net asset position £110,033 (2021: £1,035,493).

 

Operational overview

 

· In January 2022, the Company completed the ISO 27001 accreditation audit on behalf of the International Standards Organisation (ISO), ensuring that the Company retained its accreditation.

· In March 2022, the Company secured the renewal of the Charlton Athletic Community Trust 'On Side' licence and support agreement with a contract value of £37,500 to be paid over the next three years. The Company received an additional £1,000 upfront payment for the migration to a new server.

· The Company continued its participation with the UK Government's Department for Digital, Culture, Media and Sport ("DCMS") in the development of the Digital Identity and Trust Attributes Framework Policy.

· The Company also promoted itself at Construction Industry events in London and Birmingham, focusing on its digital identity solutions.

 

Post period end

 

· In May 2022, the Company secured a c.£95,000 Digital Technology Solution purchase order with Saxavord UK Space Port.  It is anticipated that c.£66,400 of this purchase order will be recognised as revenue in the second half of the current financial year.

 

Convertible Loan

 

The Company also announces that, post period end, it has entered into an agreement for a convertible loan facility for up to £250,000 ("Convertible Loan") with Sanderson Capital Partners Limited ("Sanderson Capital"), which will consist of an initial drawdown of £125,000 followed by a further drawdown expected three months thereafter.

 

At each drawdown, the Company will issue new ordinary shares to Sanderson Capital equal to 10 percent of the drawdown value at an issue price of the 10-day volume weighted average price prior to the date of drawdown. A further announcement will be made on the date of each drawdown event.

 

Sanderson Capital will be able to convert part or all of the Convertible Loan facility in minimum increments of £5,000, with the conversion price being fixed at the lower of i) 0.25p; or ii) 90% of the 5-day volume weighted average price from the first day of dealings of the Company's restoration to trading on AIM. The Convertible Loan facility is interest-free.

 

As part of the Convertible Loan facility agreement, Sanderson Capital will be issued new ordinary shares and a warrant over new ordinary shares in the Company, of which the issue price and exercise price will be the closing mid-price of the Company's ordinary shares on the first day of dealings following the lifting of the suspension and restoration to trading of the Company's ordinary shares on AIM.

 

The new ordinary shares and warrant over new ordinary shares will be issued after the next general meeting of the Company and a further announcement setting out the details will be made at the time of issue.

 

 

Guy Meyer, Chief Executive Officer of Catenae, said:  

 

"Given the challenging trading conditions as a result of the Covid-19 pandemic and market uncertainty, the Company has been very prudent with our resources and has focused on securing contract wins.


"
Our acquisition of Hyperneph has proved disappointing, but the board remains optimistic about the prospects of recouping monies committed as a result of that transaction.

 

"Catenae's ongoing consultation with DCMS in the development of the Digital Identity and Trust Attributes Framework Policy reflects the Company's standing in the sector. Our investment in software IP development also contributes to the future-proofing of our competitive product set offerings, not just within the Geo-spatial sector.

 

"We look forward to keeping the market updated on how these opportunities progress."

 

This announcement contains inside information for the purposes of the UK Market Abuse Regulation. The person who arranged for release of this announcement on behalf of the Company was Guy Meyer, Chief Executive Officer of the Company and the Directors of the Company are responsible for the release of this announcement.

 

 

For further information please contact:

 

Catenae Innovation PLC

+44 (0)191 580 8545

Guy Meyer, Chief Executive Officer




Cairn Financial Advisers LLP (Nominated Adviser)

+44(0)20 7213 0880

Liam Murray / Jo Turner




Shard Capital Partners LLP (Broker)

+44 (0)20 7186 9952

Damon Heath




Yellow Jersey PR (PR & IR)

+44 (0)20 3004 9512

Sarah Hollins / James Lingfield


 

 

 

Notes to Editors:

 

About Catenae Innovation PLC

Catenae Innovation is an AIM quoted provider of digital media and technology services. The Company specialises in Distributed Ledger Technology solutions that solve commercial challenges and create opportunities for its clients. The Company has an experienced IT team of project managers and integrators who have deployed systems across corporate, government and educational sectors.

 

www.catenaeinnovation.com

 

 

 



 

Consolidated Statement of Comprehensive Income

For the Period Ended 31 March 2022

 

 

Unaudited

six months ended

31 March

2022

 

£

Unaudited

six months ended

31 March

2021

 

£

Audited

year

ended

30 Sept

2021

 

£

 

Revenue

 

17,500

 

12,308

 

30,210

 

Cost of sales

 

(6,000)

 

-

 

(14,400)

 

Gross profit

 

11,500

 

12,308

 

15,810

 

Administrative expenses

 

(298,668)

 

(599,116)

 

(939,027)

 

Impairment losses

-

-

(318,629)

 




 

Loss from operations

 

(287,168)

 

(586,808)

 

(1,241,846)

 

Net Finance income/(expense)

 

-

 

10

 

(10)

 




 

Loss before taxation

 

(287,168)

 

(586,798)

 

(1,241,836)

 

Taxation

 

-

 

-

 

(5,112)

 

Total comprehensive loss for the year

 

(287,168)

 

(586,798)

 

(1,246,948)


 

 


Loss attributable to:

 

 


Owners of the parent  

(280,260)

-

(1,257,149)

Non-controlling interest

(6,908)

-

10,201

 

 

 



 

Consolidated Statement of Financial Position

 For the Period Ended 31 March 2022 

 

 



Unaudited

six months

ended

31 March

2022

 

£

Unaudited

six months

ended

31 March

2021

 

£

Audited

year

ended

30 Sept

2021

 

£

Non-current assets


 

 

 

Tangible Assets


6,518

-

6,828

Intangible assets


1

1

1



6,519

1

6,829

 

Current assets

 

 




Trade and other receivables


30,514

47,475

45,236

Cash and cash equivalents


337,183

1,254,445

605,082



367,697

1,301,920

650,318

Current liabilities





Trade and other payables


(264,183)

(248,428)

(275,221)



(264,183)

(248,428)

(275,221)



 

 

 

Non-current liabilities


 

 

 

Interest-bearing loans


-

(18,000)

-

Total Liabilities


(264,183)

(266,428)

(275,221)



 

 

 

Net Assets/(Liabilities)


110,033

1,035,493

381,926






Non-controlling Interest


4,610

-

11,518

 

Capital and reserves attributable to equity holders of the company





Ordinary share capital


570,078

551,773

562,441

Deferred share capital


3,159,130

3,159,130

3,159,130

Share premium account


19,665,458

19,663,223

19,657,821

Share reserve


(83,333)

(83,333)

(83,333)

Merger reserve


11,119,585

11,119,585

11,119,585

Capital Redemption Reserve


2,732,904

2,732,904

2,732,904

Retained losses


(37,058,399)

(36,107,789)

(36,778,140)

 

Total Equity


 

110,033

 

1,035,493

 

381,926

 

 

 

 

 

 

 



 

Consolidated Statement of Cash Flows

For the Period Ended 31 March 2022 

 


Unaudited

six months

ended

31 March 2022

 

£

Unaudited

six months

ended

31 March 2021

 

£

Audited

year

ended

30 Sept 2021

 

£

 

Loss for the period

 

(287,168)

 

(586,798)

 

(1,246,948)

Adjustments for :




Impairment of investments

-

-

318,629

Net bank and other interest (income) / charges

 

-

 

(10)

 

(10)

Issue of share options / warrant charge

-

-

-

Services settled by the issue of shares

-

48,000

72,704

 

Net (loss) before changes in working capital

 

 

(287,168)

 

 

(538,808)

 

 

(855,625)

(Increase) / decrease in trade and other receivables

 

15,034

 

(34,766)

 

(24,633)

(Decrease) / increase in trade and other

payables

 

(11,038)

 

(5,898)

 

(112,896)

 

Cash from operations

 

(283,172)

 

(579,472)

 

(993,154)

 

Interest received

 

-

 

10

 

10

Interest paid

-

-

-

Net cash flows from operating activities

 

(283,172)

 

(579,462)

 

(993,144)

 

Investing activities

 

 

 

Investment in subsidiary

-

-

217,500

Net cash flows from investing activities

 

-

 

-

 

(217,500)

 

Financing Activities



 

Issue of ordinary share capital

15,273

1,119,864

1,119,683

Repayment of loans

-

-

(18,000)

New loans raised

-

-

-

Net cash flows from financing activities

 

15,273

 

1,119,864

 

1,101,683





 

Net increase / (decrease) in cash

 

(267,899)

 

540,402

 

(108,961)

Cash and cash equivalents at beginning of period

 

605,082

 

714,043

 

714,043

Cash and cash equivalents at end of period

 

337,183

 

1,254,445

 

605,082

 



Company Statement of Financial Position

For the Period Ended 31 March 2022 

 

 



Unaudited

six months

ended

31 March

2022

 

£

Unaudited

six months

ended

31 March

2021

£

Audited

year

ended

30 Sept

2021

 

£

Non-current assets


 

 

 

Intangible assets


1

1

1



1

1

1

 

Current assets

 

 




Trade and other receivables


24,242

47,475

45,237

Cash and cash equivalents


332,209

1,254,445

539,842



356,451

1,301,920

585,079

Current liabilities





Trade and other payables


(255,828)

(248,428)

(226,660)



(255,828)

(248,428)

(226,660)



 

 

 

Non-current liabilities


 

 

 

Interest-bearing loans


-

(18,000)

-

Total Liabilities


(255,828)

(266,428)

(226,660)



 

 

 

Net Assets/(Liabilities)


100,624

1,035,493

358,420






 

Capital and reserves attributable to equity holders of the company





Ordinary share capital


570,078

551,773

562,441

Deferred share capital


3,159,130

3,159,130

3,159,130

Share premium account


19,665,457

19,663,223

19,657,821

Share reserve


(83,333)

(83,333)

(83,333)

Merger reserve


11,119,585

11,119,585

11,119,585

Capital Redemption Reserve


2,732,904

2,732,904

2,732,904

Retained losses


(37,063,197)

(36,107,789)

(36,790,128)

 

Total Equity


 

100,624

 

1,035,493

 

358,420

 

 

 

 

 

 

 

 



 

Company Statement of Cash Flows

For the Period Ended 31 March 2022 

 


Unaudited

six months

ended

31 March 2022

 

£

Unaudited

six months

ended

31 March 2021

£

Audited

year

ended

30 Sept 2021

 

£

 

Loss for the period

 

(273,069)

 

(586,798)

 

(1,269,137)

Adjustments for :

Impairment of investment



 

320,000

Net bank and other interest (income) / charges

 

-

 

(10)

 

(10)

Issue of share options / warrant charge

-

-

-

Services settled by the issue of shares

-

48,000

72,704

 

Net (loss) before changes in working capital

 

 

(273,069)

 

 

(538,808)

 

 

(876,443)

(Increase) / decrease in trade and other receivables

 

20,995

 

(34,766)

 

(24,633)

(Decrease) / increase in trade and other

payables

 

29,168

 

(5,898)

 

(157,318)

 

Cash from operations

 

(222,906)

 

(579,472)

 

(1,058,394)

 

Interest received

 

-

 

10

 

10

Interest paid

-

-

-

Net cash flows from operating activities

 

(222,906)

 

(579,462)

 

(1,058,384)

 

Investing activities

 

 

 

Investment in subsidiary

-

-

(217,500)

Net cash flows from investing activities

 

-

 

-

 

(217,500)

 

Financing Activities



 

Issue of ordinary share capital

15,273

1,119,864

1,119,683

Repayment of loans

-

-

(18,000)

New loans raised

-

-

-

Net cash flows from financing activities

 

15,273

 

1,119,864

 

1,101,683





 

Net increase / (decrease) in cash

 

(207,633)

 

540,402

 

(174,201)

Cash and cash equivalents at beginning of period

 

539,842

 

714,043

 

714,043

Cash and cash equivalents at end of period

 

332,209

 

1,254,445

 

539,842

 

 

 

Caution regarding forward looking statements

 

Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect", ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.

 

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 or visit 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.
 
END
 
 
IR EKLFLLKLEBBE
UK 100

Latest directors dealings