Interim Results for the six months ended 31 Mar 19

RNS Number : 7329D
adept4 plc
28 June 2019
 

Adept4 plc

("Adept4", the "Group" or the "Company")
Interim Results for the six months ended 31 March 2019


Adept4 plc (AIM: AD4), the AIM quoted provider of IT as a Service, today announces its unaudited interim results for the six months ended 31 March 2019.

Summary     

·    Revenue for the period of £4.2 million (H1 2018: £5.4 million);

·    Trading Group EBITDA1 of £15,000 (H1 2018: £0.5 million);

·    Loss for the period of £1.1 million (H1 2018: £0.8 million);

·    Net debt2 at 31 March 2019 of £3.4 million;

·    Significant reduction in costs at end of period following decision to focus more on existing customer base with less emphasis on new business generation;

·    Return to modest levels of monthly Trading Group EBITDA profitability;

·    Strategic review nearing conclusion.


Simon Duckworth, Non-Executive Chairman of Adept4, commented:

"Having returned the business to modest levels of monthly Trading Group EBITDA profitability with a reduced cash burn after plc and debt service costs, the Board has more recently been able to focus on taking positive steps to return the business to growth. Good progress has been made in this regard and we look forward to updating shareholders on our future plans in due course."

 

For further information please contact:

 

Adept4 plc

Simon Duckworth, Non-Executive Chairman

01925 398255

N+1 Singer (Nominated Adviser and Broker)

Jen Boorer

Shaun Dobson

 

0207 496 3000

MXC Capital Markets LLP

Charlotte Stranner

0207 965 8149

 

This announcement contains inside information.

 

1 earnings before net finance costs, tax, depreciation, amortisation, plc costs, separately identifiable items and share-based
  payments

2 Net debt at 31 March 2019 comprises cash balances of £0.8m, less the amortised cost of BGF loan notes of £4.2m.

 

 

 

 

CHAIRMAN'S STATEMENT        

Strategic overview

In February 2019 we reported on the Group's financial results for the year ended 30 September 2018 ("FY18"). Within those results we noted that FY18 had been extremely challenging for the business, with the investment made in the new sales team not yet delivering the results we had hoped for and with progress further hindered by the general level of caution which is evident in our economy.

We further reported that the continued delays in new sales in the current financial year ("FY19") meant that the Group was experiencing ongoing monthly Trading Group EBITDA and cash losses. As a consequence, we announced that we had taken the decision to focus on our existing customer base with less emphasis on new business acquisition, which would lead to reduced revenue and gross profit, but which requires a significantly lower operating cost base, with the intention of returning the Group to profitability and cash generation. This action was designed to protect the cash reserves of the Group whilst the Board considered the strategic options open to the Company.  As at February 2019, further cost savings had been identified which were in the process of being implemented. I can now provide an update on these initiatives.

The cost reduction programme was completed at the end of March 2019 and has reduced overheads by circa £75,000 per month. Since the changes were implemented, we have seen a pleasing increase in the levels of new business won within our existing customer base, demonstrating the strength of those relationships and the opportunities therein. The recent performance of the business has, however, been impacted by the cancellation of a contract by a major customer, as announced on 8 April 2019. The Company disputes the contract termination is valid and is currently seeking legal redress from the customer. The combined effect of these changes means that the Group has returned to modest levels of monthly Trading Group EBITDA profit generation and the cash burn (after plc costs and debt service costs) has reduced.

In seeking to recover value for shareholders the Board has been considering the strategic options open to the Company and working with its professional advisers, its debt provider and its major shareholders to find the best way forward for all stakeholders.  This review is now nearing its conclusion and the Board will announce the outcome of this as soon as practicable.

Trading and results

Revenue in the six months to 31 March 2019 ("H119") was £4.2 million, compared to £5.4 million in the six months to 31 March 2018 ("H118"). This reduction reflected both the delays experienced in generating new sales and the conclusion of several transformation projects which generated significant professional services and product revenues in H118, together with a number of planned and expected customer contract reductions.

In terms of our recurring revenues, as previously reported, some of our larger customers undertook digital transformation projects in FY18, to move them away from on-premise solutions to a more dynamic and flexible cloud-based "Pay as you Use" IT solution. After their initial investment in one-off costs, in FY19 these customers started to enjoy the benefits of the monthly savings such solutions provide. H119 also saw certain customers' fixed term IT support contracts come to a natural end at the conclusion of the related projects. As a result, recurring revenues in H119 were £3.0 million (H118: £3.6 million), representing over 70% of total revenue.

Product sales in the period were £0.8 million (H118: £1.1 million) with professional services revenue of £0.4 million (H118: £0.7 million).


The resultant total gross profit was £2.1 million (H118: £3.1 million). The reduction in gross profit margins from 57% in H118 to 51% in H119 is predominantly due to the migration of certain services from our infrastructure to that of a third party (such as Microsoft), in line with our asset-light strategy. Whilst initially resulting in some margin reduction, this strategy reduces risk and cost of ownership for us and allows us to provide customers with best-of-breed solutions with the ability to sell a wider range of services to the customer. This transition also means that we need fewer staff to support the in-house solutions, which has enabled us to reduce our overhead base without affecting customer service levels.

In the six months to March 2019, administrative expenses before plc costs reduced to £2.1 million, a fall of £0.5 million compared to H118. This resulted in a Trading Group EBITDA for the period of £15,000 (H118: £0.5 million). As detailed above, the Group's forward operating cost base has been reduced by circa £75,000 per month as a result of the restructure which concluded in March 2019. The restructure resulted in one-off costs in the half-year of £0.1 million, shown in the income statement as separately identifiable costs.

After accounting for plc costs and non-cash items such as amortisation, depreciation and share-based payments charges, the operating loss for the period was £0.9 million (H118: loss of £0.5 million).  After cash interest costs of £0.2 million and a notional non-cash interest charge of £0.1 million in respect of the loan from BGF, together with a deferred tax credit of £0.1 million, the loss after tax for H119 was £1.1 million (H118: £0.8 million).

Cash used in operating activities in the period was £0.3 million (H118: £0.5 million). This figure includes the net impact of the £0.6 million which was received from the vendors of Adept4 Managed IT Limited (being the cash element of Group's successful £1.6 million warranty claim settlement in 2018), and the payment of creditors in respect of legal fees relating to the warranty claim, together with part payment of the £0.4 million settlement of the Microsoft historic licencing review reported in December 2018 and provided for as a liability in the FY18 financial statements. After interest payments of £0.2 million and a £0.1 million final payment in relation to the disposal of Pinnacle CDT Limited, the cash balance at 31 March 2019 was £0.8 million (30 September 2018: £1.4 million).

Net debt at 31 March 2019 was £3.4 million (30 September 2018: £2.7 million).  This comprises the cash balance of £0.8 million less the amortised cost of loan notes held by BGF of £4.2 million.

Outlook

Having returned the business to a position of modest monthly Trading Group EBITDA profitability with a reduced cash burn after plc and debt service costs, the Board has more recently been able to focus on taking positive steps to return the business to growth. Good progress has been made in this regard and we look forward to updating shareholders on our future plans in due course.

 

Simon Duckworth           
Non-Executive Chairman                                                            

28 June 2019   
 

CONSOLIDATED INCOME STATEMENT
for the six-month period ended 31 March 2019

 

 

6 months to 31 March 2019

6 months to 31 March 2018

Year to 30 September 2018

 

Note

£'000

£'000

£'000

Continuing operations

 

 

 

 

Revenue

3

4,181

5,392

10,185

Cost of sales

 

(2,040)

(2,323)

(4,480)

Gross profit

3

2,141

3,069

5,705

 

 

 

 

 

Administrative expenses

 

(2,318)

(2,883)

(5,598)

Amortisation of intangible assets

7

(454)

(470)

(907)

Depreciation

 

(58)

(39)

(136)

Separately identifiable costs

4

(143)

(137)

(2,390)

Share-based payments

 

 (81)

(60)

(48)

Operating loss

 

(913)

(520)

(3,374)

 

 

 

 

 

Interest receivable

 

2

1

7

Interest payable

 

 (303)

(330)

(609)

 

 

 

 

 

Net finance expense

 

(301)

(329)

(602)

 

 

 

 

 

Loss before taxation

 

(1,214)

(849)

(3,976)

 

 

 

 

 

Taxation

 5

 84

84

169

Loss and total comprehensive loss for the period attributable to owners of the parent

(1,130)

(765)

(3,807)

 

 

 

 

 

Loss per share

 

 

 

 

Basic and fully diluted

6

(0.50)p

(0.34)p

(1.68)p

 

 

 

 

 

Non-statutory measure : Trading Group EBITDA1

 

 

 

 

Operating loss

 

(913)

(520)

(3,374)

Plc costs

 

192

267

482

Amortisation of intangible assets

7

454

470

907

Depreciation

 

58

39

136

Separately identifiable costs

4

143

137

2,390

Share-based payments

 

81

60

48

Trading Group EBITDA1

 

15

453

589


 

 

1 earnings before net finance costs, tax, depreciation, amortisation, plc costs, separately identifiable items and share-based
  payments

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 31 March 2019

 

 

 

 

At 30

 

 

At 31 March

At 31 March

September

 

 

2019

2018

2018

 

Note

£'000

£'000

£'000

Non-current assets

 

 

 

 

Intangible assets

7

7,849

11,369

8,282

Property, plant and equipment

 

103

214

146

 

 

 

 

 

Total non-current assets

 

7,952

11,583

8,428

 

 

 

 

 

Current assets

 

 

 

 

Inventories

 

86

102

26

Trade and other receivables

8

2,443

2,822

2,900

Cash and cash equivalents

 

841

2,037

1,427

 

 

 

 

 

Total current assets

 

3,370

4,961

4,353

 

 

 

 

 

Total assets

 

11,322

16,544

12,781

 

 

 

 

 

Liabilities

 

 

 

 

Short-term borrowings

9

(32)

(1,035)

(32)

Trade and other payables

 

(1,421)

(1,137)

(1,102)

Other taxes and social security costs

 

(373)

(554)

(377)

Accruals and deferred income

 

(1,208)

(1,426)

(1,937)

 

 

 

 

 

Total current liabilities

 

(3,034)

(4,152)

(3,448)

 

 

 

 

 

Non-current liabilities

 

 

 

 

Long-term borrowings

9

(4,205)

(4,038)

(4,117)

Deferred tax liability

 10

(1,164)

(1,332)

(1,248)

 

 

(5,369)

(5,370)

(5,365)

Total liabilities

 

(8,403)

(9,522)

(8,813)

 

 

 

 

 

Net assets

 

2,919

7,022

3,968

 

 

 

 

 

Equity

 

 

 

 

Share capital

 

2,271

2,271

2,271

Share premium account

 

11,337

11,337

11,337

Capital redemption reserve

 

6,489

6,489

6,489

Merger reserve

 

1,997

1,997

1,997

Other reserve

 

1,730

1,661

1,649

Retained earnings

 

(20,905)

(16,733)

(19,775)

 

 

 

 

 

Total equity

 

2,919

7,022

3,968

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six-month period ended 31 March 2019

 


Share
capital
£'000


Share
premium
£'000

Capital
redemption
reserve
£'000
 


Merger
reserve
£'000


Other
reserve
£'000


Retained
earnings
£'000


Total
£'000

 

 

 

 

 

 

 

At 1 October 2017

2,271

11,337

6,489

1,997

1,601

(15,968)

7,727

Loss and total comprehensive loss for the period

                          -

                          -

                          -

                          -

                          -

(765)

(765)


Transactions with owners

 

 

 

 

 

 

 

Share-based payments

 -

 -

 -

 -

60

 -

60


Total transactions with owners

                -

                    -

                   -

                   -

60

-

60


Total movements

                 -

                   -

                  -

                 -

60

(765)

(705)

 

 

 

 

 

 

 

 

Equity at 31 March 2018

2,271

11,337

6,489

1,997

1,661

(16,733)

7,022

                 

 

 

 


Share
capital
£'000


Share
premium
£'000

Capital
redemption
reserve
£'000
 


Merger
reserve
£'000


Other
reserve
£'000


Retained
earnings
£'000


Total
£'000

 

At 1 April 2018

2,271

11,337

6,489

1,997

1,661

(16,733)

7,022

 

Loss and total comprehensive loss for the period

-

-

-

-

-

(3,042)

(3,042)

 

Transactions with owners

 

 

 

 

 

 

 

 

Share-based payments

-

-

-

-

(12)

-

(12)

 

Total transactions with owners

-

-

-

-

(12)

-

(12)

 

Total movements

-

-

-

-

(12)

(3,042)

(3,054)

 

Equity at 30 September 2018

2,271

11,337

6,489

1,997

1,649

(19,775)

3,968

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital

 

 

 

 

 

 

Share

Share

redemption

Merger

Other

Retained

 

 

 

capital

premium

reserve

reserve

reserve

earnings

Total

 

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

 

At 1 October 2018

2,271

11,337

6,489

1,997

1,649

(19,775)

3,968

 

Loss and total comprehensive loss for the period

-

-

-

-

-

(1,130)

(1,130)

 

Transactions with owners

 

 

 

 

 

 

 

 

Share-based payments

-

-

-

-

81

-

81

 

Total transactions with owners

-

-

-

-

81

-

81

 

Total movements

-

-

-

-

81

(1,130)

(1,049)

 

 

 

 

 

 

 

 

 

 

Equity at 31 March 2019

2,271

11,337

6,489

1,997

1,730

(20,905)

2,919

                                 

 

 

 
CONSOLIDATED STATEMENT OF CASH FLOWS
for the six-month period ended 31 March 2019

 

 

6 months to 31 March 2019

6 months to 31 March 2018

Year to 30 September 2018

 

£'000

£'000

£'000

Cash flows from operating activities

 

 

 

Loss before taxation

(1,214)

(849)

(3,976)

Adjustments for:

 

 

 

Depreciation

58

39

136

Amortisation

454

470

907

Share-based payments

81

60

48

Net finance expense

301

329

602

Settlement of Warranty Claim

-

-

(1,578)

Impairment of goodwill

-

-

2,644

Decrease/(increase) in trade and other receivables

457

(473)

73

(Increase)/Decrease in inventories

(60)

(35)

40

(Decrease)/increase in trade payables, accruals and deferred income

(334)

(55)

195

Net cash used in operating activities

(257)

(514)

(909)

Cash flows from investing activities

 

 

 

Purchase of property, plant and equipment

(15)

(75)

(70)

Payment of deferred consideration

-

-

(8)

Interest received

2

1

7

Net cash used in investing activities

(13)

(74)

(71)

Cash flows from financing activities

 

 

 

Finance lease income received

-

56

56

Payment of finance lease liabilities

(12)

(18)

(44)

Interest paid

(204)

(218)

(410)

Net cash used in financing activities

(216)

(180)

(398)

Cash flows from discontinued operations

 

 

 

Settlement of dispute regarding Pinnacle CDT Limited

(100)

(100)

(100)

Net cash used in discontinued operations

(100)

(100)

(100)

Net decrease in cash

(586)

(868)

(1,478)

Cash at bank and in hand at beginning of period

1,427

2,905

2,905

Cash at bank and in hand at end of period

841

2,037

1,427

Comprising:

 

 

 

Cash at bank and in hand

841

2,037

1,427

 

 

NOTES TO THE FINANCIAL INFORMATION
for the six-month period ended 31 March 2019

1.      General Information


Adept4 plc is a company incorporated in the United Kingdom under the Companies Act 2006. The principal activity of the group is the provision of IT as a Service ("ITaaS") to small and medium sized businesses in the United Kingdom. The interim financial statements are presented in pounds sterling because that is the currency of the primary economic environment in which each of the Group's subsidiaries operates.

 

         The address of its registered office is 5 Fleet Place, London, EC4M 7RD and its principal places of business are Leeds and Warrington. The company is quoted on AIM, the market of that name operated by the London Stock Exchange, under ticker symbol AD4.L

 

These interim financial statements contain inside information.

 

2.      Basis of preparation 

The annual financial statements of the Group are prepared in accordance with applicable International Financial Reporting Standards (IFRSs) as adopted by the EU and in accordance with the Companies Act 2006. The interim financial information in this report has been prepared using accounting standards consistent with IFRS as adopted by the European Union.  IFRS is subject to amendment and interpretation by the International Accounting Standards Board (IASB) and the IFRS Interpretations Committee and there is an ongoing process of review and endorsement by the European Commission.  The financial information has been prepared on the basis of IFRS that the Directors expect to be adopted by the European Union and applicable at 30 September 2019.

 

Financial information contained in this document does not constitute statutory accounts within the meaning of section of 434 of the Companies Act 2006 ("the Act").  The statutory accounts for the year ended 30 September 2018 have been filed with the Registrar of Companies.  The report of the auditors on those statutory accounts was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498(2) or (3) of the Act. The financial information for the six months ended 31 March 2019 and 31 March 2018 is unaudited.

 

The accounting standards applied by the Group in these interim financial statements are the same as those applied by the Group in the consolidated financial statements for the year ended 30 September 2018 with the exception of two new accounting standards introduced in the six-month period to 31 March 2019, as follows:

 

•    IFRS 15 Revenue from Contracts with Customers (effective 1 January 2018);

•    IFRS 9 Financial Instruments (effective 1 January 2018); and

 

Using the modified retrospective method, we assessed the impact of IFRS 9 and IFRS 15 and confirm that no material changes were required to the Group's financial results.             

Under IFRS 15 there is a broader definition of what is capitalisable as cost to obtain a contract. We have matched the amortisation of capitalised costs to obtain a contract to the revenue recognised but have used the practical expedient of IFRS 15 not to capitalise costs that relate to revenue that is recognised in the income statement within twelve months.              

 

As a practical expedient and as allowed under the standard, we have applied the five-step approach under IFRS 15 to portfolios of contracts which have similar characteristics and these have not materially impacted the Group's financial results for the interim period to 31 March 2019.       
      
The adoption of IFRS 9 does not have a material impact on the results of the Group.

 

After reviewing budgets, forecasts and cash projections for the next twelve months and beyond, the Directors believe that the Group has adequate resources to continue operations for the foreseeable future and for this reason they have adopted a going concern basis in preparing the interim financial statements. The interim financial statements were approved by the Board of Directors on 27 June 2019.

 

3.      Segment Reporting


The Chief Operating Decision Maker ("CODM") has been identified as the director of the Company and its subsidiaries, who review the Group's internal reporting in order to assess performance and to allocate resources.
 

The CODM assesses profit performance principally through adjusted profit measures consistent with those disclosed in the Annual Report and Accounts. The Board believes that the Group comprises a single reporting segment, being the provision of IT managed services to customers. Whilst the CODM reviews the revenue streams and related gross profits of three categories separately (Recurring Services, Product and Professional Services), the operating costs and operating asset base used to derive these revenue streams are the same for all three categories and are presented as such in the Group's internal reporting. Accordingly, the segmental analysis below is therefore shown at a revenue and gross profit level in line with the CODM's internal assessment based on the following reportable operating segments:           
 

• Recurring Services                  This segment comprises the provision of continuing IT services which have
                                                       an ongoing billing and support element.

• Product                                     This segment comprises the resale of solutions (hardware and software)
                                                       from leading technology vendors.

• Professional Services             This segment comprises the provision of highly skilled resource to consult,
                                                       design, install, configure and integrate IT technologies.

 

All revenues are derived from customers within the UK and no customer accounts for more than 10% of external revenues. Inter-segment transactions are accounted for using an arm's length commercial basis.

 

The operating segments for the six months to 31 March 2018 have been restated to reflect the definitions used in the Annual Report and Accounts for the year ended 30 September 2018, in particular the Professional Services operating segment, which now includes all separable Professional Services revenues associated with Product and Recurring Services revenues, which have been unbundled to measure the contribution of our skilled technical resources. This analysis is consistent with that used internally by the CODM and, in the opinion of the Board, better reflects the nature of the revenue.        
 

 

 

3.1 Analysis of revenue

 

6 months to

6 months to

Year to

 

 

31 March

31 March

30 September

 

 

2019

2018

2018

 

 

£'000

£'000

£'000

By operating segment

 

 

 

 

Recurring services

 

3,022

3,551

7,100

Product

 

793

1,124

1,987

Professional services

 

366

717

1,098

Total revenue

 

4,181

5,392

10,185

 

 

 

 

 

3.2 Analysis of gross profit

 

6 months to

6 months to

Year to

 

 

31 March

31 March

30 September

 

 

2019

2018

2018

 

 

£'000

£'000

£'000

By operating segment

 

 

 

 

Recurring services

 

1,667

2,128

4,231

Product

 

167

256

439

Professional services

 

307

685

1,035

Total gross profit

 

2,141

3,069

5,705

 

 

 

 

 

 

4.  Separately identifiable costs and income

During the period, the Group incurred the following separately identifiable costs and income which are material by their size or incidence:

 


6 months to 
31 March
2019
£'000


6 months to 
31 March
2018
£'000


Year to
30 September
2018
£'000

 

 

 

 

Settlement of warranty claim

-

-

1,578

Costs in relation to the warranty claim and other M&A activities

-

-

(481)

Settlement of historic Microsoft licence review

-

-

(376)

Impairment of goodwill

-

-

(2,644)

Costs in relation to disposal of Pinnacle CDT Limited

-

(90)

(196)

Integration and restructure costs

(143)

(47)

(271)

Separately identifiable costs

(143)

(137)

(2,390)


 

 

 

5.  Taxation

 

6 months to 

6 months to 

Year to

 

31 March

31 March

30 September

 

2019

2018

2018

 

£'000

£'000

£'000

 

 

 

 

Current tax

 

 

 

UK corporation tax for the period on continuing operations

-

-

-

 

 

 

 

Deferred tax credit

 

 

 

Deferred tax credit on intangible assets from continuing operations

 

84

 

84

 

169

 

 

 

Total taxation credit for the period

84

84

169

 

 

6. Loss per share

 

 

 

 


6. Loss per share

6 months to

6 months to

Year to

 

31 March

31 March

30 September

 

2019

2018

2018

 

p/share

p/share

p/share

Basic and fully diluted - continuing operations

(0.50)

(0.34)

(1.68)

 

£000

£000

£000

Loss on continuing operations

(1,130)

(765)

(3,807)

Weighted average number of shares in issue:

 

 

 

Basic and fully diluted

227,065,100

227,065,100

227,065,100

 

The weighted average number of ordinary shares for the purpose of calculating the basic and diluted measures is the same. This is because the outstanding share incentives would have the effect of reducing the loss per ordinary share and therefore would be anti-dilutive under the terms of IAS 33.

 

 

7. Intangible assets

Goodwill

IT, billing and
website
systems

Brand

Customer lists

Total

 

£'000

£'000

£'000

£'000

£'000

Cost

 

 

 

 

 

At 1 October 2017

4,447

113

 

       -

1,157

7,580

13,297

Additions

-

35

-

-

35

At 31 March 2018

4,447

           148

1,157

7,580

13,332

 

 

 

 

 

 

Disposals

-

(6)

-

-

(6)

At 30 September 2018

4,447

142

1,157

7,580

13,326

 

 

 

 

 

 

Additions

-

21

-

-

21

At 31 March 2019

4,447

           163

1,157

7,580

13,347

 

 

 

 

 

 

 

 

 

 

 

 

Amortisation

 

 

 

 

 

At 1 October 2017

(200)

(7)

(150)

(1,136)

(1,493)

Charge for the period

             -

          (10)

(60)

(400)

(470)

At 31 March 2018

       (200)

           (17)

(210)

(1,536)

(1,963)

 

 

 

 

 

 

Impairment charge

(2,644)

-

-

-

(2,644)

Charge for the period

-

(10)

(55)

(372)

(437)

At 30 September 2018

(2,844)

(27)

(265)

(1,908)

(5,044)

 

 

 

 

 

 

Charge for the period

             -

          (15)

(57)

(382)

(454)

At 31 March 2019

(2,844)

(42)

(322)

(2,290)

(5,498)

 

 

 

 

 

 

Net Book Value

 

 

 

 

 

At 31 March 2018

4,247

           131

947

6,044

11,369

At 30 September 2018

1,603

115

892

5,672

8,282

At 31 March 2019

1,603

121

835

5,290

7,849

 

 

8. Trade and other receivables

 

 

 
At 31 March 2019


At 31 March
2018

At 30 September
2018

 

 

£000

£000

£000

Trade receivables

 

1,489

1,615

1,343

Warranty settlement

 

-

-

600

Other debtors

 

-

47

36

Prepayments and accrued income

 

954

1,160

921

Trade and other receivables

 

2,443

2,822

2,900

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9. Borrowings

At 31 March
2019

At 31 March
2018

At 30
September
2018

 

£000

£000

£000


Short-term borrowings

 

 

 

Finance lease

32

43

32

Deferred consideration for Adept4 Managed IT Limited

-

992

-

Total short-term borrowings

32

1,035

32


Long-term borrowings

 

 

 

Finance lease

34

61

46

BGF loan notes repayable to BGF between 2021 and 2023

5,000

5,000

5,000

Warrant adjustment relating to BGF loan notes

(829)

(1,023)

(929)

Total long-term borrowings

4,205

4,038

4,117

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10. Deferred tax

 

 

At
31 March 2019

At
31 March
2018

At 30 September
2018

 

 

£000

£000

£000

Provision brought forward

 

1,248

1,416

1,416

 

 

 

 

 

Credits to income statement - on intangibles

 

(84)

(84)

(168)

Provision carried forward

 

1,164

1,332

1,248

 

 

 

 

 

 

 

 

11. Post Balance Sheet Events

 

On 8 April 2019, the Company announced that it had received notice of termination of a customer contract which in the year to 30 September 2018, delivered £0.7 million of recurring revenue. The Company disputes the contract termination is valid and is therefore currently seeking legal redress from the customer.


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.
 
END
 
 
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