Half-year Report

RNS Number : 4048C
Smartspace Software PLC
11 October 2022
 

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11 October 2022

SmartSpace Software Plc

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

Interim Results for the Six Months Ended 31 July 2022

SmartSpace Software Plc, (AIM:SMRT) the leading provider of 'Integrated Space Management Software' for smart buildings and commercial spaces 'visitor reception, desks and meeting rooms', announces its unaudited Interim Results for the six months ended 31 July 2022. This follows on from a recent Trading Update, which was announced on 16 August 2022.

Financial Highlights:

· Total Group revenues up 45% to £3.67 million (31 July 2021: £2.52 million)

· Strong growth in Annual Recurring Revenue* ("ARR") to £5.17m at 31 July 2022 up 32% year-on-year on a constant currency basis (31 July 2021: £3.90m)

· Recurring revenues up 49% to £2.37m (31 July 2021: £1.59m)

· Improved Adjusted LBITDA** of £0.50 million (31 July 2021: £1.29 million) generated from growth in high margin recurring revenue as overheads remains constant

· Loss per share from continuing operations of 3.87p (31 July 2021: Loss per share 5.49p) and total loss per share of 3.77p (31 July 2021: Loss per share 5.49p)

· Reduction in cash consumption in the period with cash used in continuing operations amounting to £0.22m (31 July 2021: £1.33m) as trading losses reduce and a net positive movement in working capital occurs

· Cash balance at 31 July 2022 of £2.32 million (31 July 2021: £3.37 million) and a net cash position of £1.97 million (31 July 2021: £2.97 million)

· Cash balance at 30 September 2022 of £1.92m

· Group ARR* £5.65m at 30 September 2022

Operational Highlights including post review period

SwipedOn

· SwipedOn ARR* increased by 35% year-on-year to £4.50m at 31 July 2022 (31 July 2021: £3.33m) with this growth continuing during August and September to £4.96m at 30 September

· Monthly Average Revenue Per User* ("ARPU") increased by 44% year on year to £84 at 31 July 2022 (31 July 2021: £59) and has advanced further to £91 at 30 September

· SwipedOn locations increased to 7,506 at 31 July 2022 (31 July 2021: 7,003) and further to 8,129 at 30 September with the inclusion of 550 Thermo Fisher Scientific locations

· Since our February 2022 contact win announcement, Thermo Fisher Scientific have now engaged SwipedOn until Q3 2023 with a contract extension to assist with their Covid-19 testing program for schools

· SwipedOn's largest Desk customer is now managing over 2,300 desks from 16 locations in APAC region and is intending to deploy into their US offices

Space Connect

· A RR* up 35% year on year to £0.55m at 31 July 2022 (31 July 2021: £0.41m) increasing to £0.58m at 30 September

· At 31 July 2022, Space Connect had 73 customers (31 July 2021: 41)

· Sales of Evoko Naso continue to show growth with billings ahead of management expectations for the six month period and in subsequent months.

 

 

 

 

Anders & Kern (A&K)

· A&K revenue for the 6 months to 31 July 2022 increased by 36% to £1.30m (31 July 2021: £0.96m) as Covid-19 restrictions are no longer impacting sales

Outlook

· Trading is in line with expectations for FY23

· Continuing to deliver growth in ARR to transition business to cashflow breakeven towards the end of FY23

* For customers invoiced in currencies other than pounds sterling ARR and ARPU is calculated by translating charges at the applicable 31 July 2022 exchange rate (with the exception of the 30 September 2022 ARR and ARPU which is set at exchange rates on that date). Comparative period ARR is provided on a constant currency basis by retranslating foreign currency amounts at the 31 July 2022 exchange rate.

** LBITDA is the l oss for the period from continuing operations before net finance costs, tax, depreciation, amortisation, reorganisation and transactional items, impairment charges and share based payment charge

Commenting on outlook, Frank Beechinor, CEO of SmartSpace, said:

"As indicated in our recent Trading Update, our primary objective is to build a high growth SaaS business with strong recurring revenues. The results outlined above for SwipedOn and Space Connect illustrate that these key objectives are being achieved.  We continue to see good momentum in SwipedOn and it is great to see the momentum return in Space Connect after a slow start to the year. It is encouraging to see a significant uplift in Evoko Naso sales which have continued to grow in recent months. Our priorities remain focused in continuing to deliver strong growth in ARR, growing our new international geographies and becoming cashflow breakeven towards the end of FY23, to maximise value for shareholders over the coming years."

 

A copy of these interim results together with a results presentation with further information on the Company will be posted on the Company's website at: www.smartspaceplc.com .

Investor Meet Company Presentation

Frank Beechinor, CEO,  Kris Shaw, CFO and Hadleigh Ford, MD of SwipedOn, will provide a live presentation on the interim results via the 'Investor Meet Company' ("IMC") platform at 12.00 midday (BST) today.

Investors can sign up for free via: https://www.investormeetcompany.com/smartspace-software-plc/register-investor

Questions can be submitted at any time during the live presentation. 

Those who have already registered and requested to meet SmartSpace will be automatically invited.

Enquiries:

SmartSpace Plc

Frank Beechinor (CEO)

Kris Shaw (CFO)

 

Lisa Baderoon (Head of Investor Relations)

lbaderoon@smartspaceplc.com

 

 

via Lisa Baderoon

 

 

 

+44 (0) 7721 413 496

Canaccord Genuity (N OMAD and Broker)

Adam James

Gerel Bastin

+44 (0) 20 7523 8000

 

 

Introduction

As a Group we remain committed to growing SaaS revenues to develop a profitable and cash generative business. We have made progress on this core strategy with 45% growth in revenue and a significant reduction in LBITDA and cash consumption. Group ARR grew by 32% year on year on a constant currency basis, to £5.17m. Our focus remains on growing revenue from existing customers through account expansion and upselling, as well as finding valuable multi-location new customers both in our existing core markets, and by targeting new international geographies.

Software development during the period has been geared towards creating revenue generating opportunities. Since the beginning of the year, we have completed development of a freemium version of SwipedOn, which we are trialling in the UK, with the aim of allowing us to establish a new base of prospective customers. The recent launch of the Android version and introduction of the full multi-region/language capability of SwipedOn means we can now accelerate our sales activities, selling into new geographic regions and markets. One of our other software development priorities which we have made good progress with is the transition to a single platform. It is anticipated that the new integrated platform will be released in 2023. 

We have developed a new partnership with Yealink, a major international manufacturer of meeting room and video conferencing hardware. A joint marketing campaign with special bundle pricing has been launched with Yealink in the  UK , targeting their major partners.

Group Key performance indicators

Metric

30 September 2022

31 July 2022

31 January 2022

31 July 2021

ARR (£m)

5 .65

5.17

4.64

3.90

Monthly average revenue per user (£)

9 9

  91

78

  65

Locations

8,129

7,506

7,076

7,003

 

Operational update

SwipedOn

SwipedOn has continued to see good growth in revenue and other key performance metrics, allowing us to report our first EBITDA profit for SwipedOn of £0.36m for the six month period. Our software is now well suited to multi-location customers needing an enterprise level solution, that is simple to implement, on a self-serve basis, and represents good value for money. This has allowed us to expand our higher value accounts, as demonstrated by Thermo Fisher, who have further extended their contract to a full school year running until October 2023.

SwipedOn's largest Desk customer was signed during the period with the order coming from an Australian- headquartered consulting business with 200 offices and 10,000 employees worldwide. They are now using our software to manage over 2,300 desks from 16 locations in the APAC region and are intending to deploy into their US offices.

During the period we launched a fully localised Korean version of SwipedOn. There was much to learn about entry into non-English speaking markets, where the dominant search engine is not Google and with non-Roman characters. Whilst challenging, important lessons have been learnt, and we have been able to successfully complete this phase whilst minimising costs. We intend to apply these learnings to other new geographies, in particular in the Far East.

SwipedOn has recently achieved two important information security accreditations, ISO 27001 and SOC 2. These certifications demonstrate our commitment to keeping data secure and operating in accordance with internationally accepted standards.

Space Connect

Space Connect began the year slower than expected with a limited number of new customers joining. This was a reflection of the switch in customer needs from Covid-19 risk control to work space optimisation, resulting in longer decision-making cycles. Despite the slow start to H1 2023, we have seen increased sales momentum, resulting in stronger sales performance in May, June and July, which has continued into August and September. We have also seen some customers who joined us during the pandemic where Covid-19 mitigation was the priority, changing their requirements and therefore resulting in some expansion, contraction, and churn. This meant that the ARR for Space Connect did not grow as materially during the period as previously announced. However, the focus has very much shifted to space optimisation and, whilst the sales cycles are more protracted, it tends to result in 'sticky' customers with a long-term commitment to using our technology. We continue to see good interest from our key UK partners, including Softcat, where we have become an 'Elite' vendor, making Space Connect the only workplace software solution provider offered to the Softcat sales team.

During the half year our room panel partner, Evoko, launched a new pricing model and showcased Naso at key trade shows. With these key marketing initiatives successfully implemented,  we have seen  an acceleration of sales momentum of Naso, which has resulted in increased cash generation in Space Connect since May 2022 and helps underpin anticipated revenues recognised from this division going forwards.  Management expects this momentum to continue over the coming  months.

Anders and Kern (A&K)

With Covid-19 no longer materially impacting our customers, A&K has been able to close a number of larger sales which had stalled in the pipeline during the pandemic. This has allowed A&K to return to pre Covid-19 revenue levels and we anticipate this will continue into the second half of the year.

Financial review

Group LBITDA has reduced to £0.50m (31 July 2021: LBITDA £1.29m) through 49% growth in high margin recurring revenue, 39% growth in lower margin hardware sales, and a 1% reduction in administrative costs. In line with reduced losses, cash consumed by continuing activities reduced to £0.22m (31 July 2021: £1.33m consumed).

The breakdown of revenue by type is:

 

Six months to 31 July 2022

Unaudited

£000

Six months to 31 July 2021

Unaudited

£000

Year ended 31 January 2022

Audited

£000

 

Recurring revenue




-  SwipedOn

2,029

1,383

2,916

-  Space Connect

274

135

373

-  Anders & Kern

65

68

127

Total recurring revenue

2,368

1,586

3,416





Hardware revenue




-  SwipedOn

26

5

19

-  Space Connect

-

-

-

-  Anders & Kern

1,197

824

1,461

Total hardware revenue

1,223

829

1,480





Other revenue

81

109

244





Total revenue

3,672

2,524

5,140

SwipedOn revenue has increased due to higher monthly Average Revenue Per User ("ARPU"). This has come from increased proportion of customers on our Business and Enterprise level plans which contribute more locations per user, together with higher subscription fees as a result of the price increase we started to implement last year. The significant customer wins announced including Thermo Fisher Scientific and Gategroup, together with the new SwipedOn Desk offering, are further strengthening revenue growth.

Space Connect revenue has increased against the comparative period due to higher customer numbers. The effect of increased sales of Naso have yet to make a significant impact on revenue, as this occurred towards the end of the reporting period and is largely recognised over time.

A&K made good progress in returning to pre-pandemic revenue levels by closing a number of larger sales. Revenue for the period was 36% above the comparative period in 2021.

Group administrative expenses fell by 1% to £3.59m (31 July 2021: £3.63m) due to a reduction in overall staff costs. Whilst inflation has increased individual staff costs, this has been offset by a small number of staff vacancies, which were only filled towards the end of the period. With a full compliment of staff going into the second half of the year, administrative costs are expected to rise reflecting the impact of inflation, albeit to be offset by anticipated revenue growth.

A profit of £29,000 relating to recently settled outstanding contingent obligations from the disposals of Smartspace Global in FY21, and Comunica Holdings in FY19, was recognised during the period.  

Loss per share from continuing operations improved to 3.87p (31 July 2022: Loss per share 5.49p).

Cash flow

Cash used in continuing operations amounted to £0.22m (31 July 2022: £1.33m). The reduction in cash consumption occurred through reduced trading losses together with a net positive movement in working capital primarily generated by increased deferred revenue. 

Cash outflows from financing activities of £78K (31 July 2022: £34K) relate to the repayment of lease liabilities, mortgage repayments, and a repayment interest free Covid-19 loan, provided by the New Zealand government.

The above cash flows resulted in a cash balance at the period end of £2.32 million (31 July 2021: £3.37 million) and a net cash position of £1.97 million (31 July 2021: £2.97 million). 

Outlook

With the pandemic mostly behind us, we are seeing a change in sentiment towards efficiency and work place optimisation. This shift is beginning to contribute to sales growth, with growing interest in both Space Connect and SwipedOn. Growth in Evoko Naso receipts offers further promise of revenue growth in the second half of the year and beyond. While there are still challenges and uncertainties in the current environment, not least from cost inflation, we remain confident of achieving our objectives of becoming a profitable high growth SaaS business. The Board have plans in place to transition SmartSpace through to cash generation and believes the Group has sufficient liquidity to complete this transition. SmartSpace is therefore well positioned to meet targets for this financial year and remains optimistic about growth prospects.

People

On behalf of the Board, I would like to thank all my colleagues for their hard work and efforts in delivering the successes achieved in the first half of the year. 

 

Frank Beechinor

Chief Executive

10 October 2022



 

Consolidated Income Statement

For the six months ended 31 July 2022

 

 

 

 

 

 

 

Six months to 31 July 2022

Unaudited

£000

 

Six months to 31 July 2021

Unaudited

£000

 

Year ended 31 January 2022

Audited

£000

Continuing operations





Revenue from contracts with customers


3,672

2,524

5,140

Costs of sale of goods


(909)

(564)

(1,068)

Cost of providing services


(277)

(165)

(427)

Gross profit

 

2,486

1,795

3,645

Administrative expenses


(3,591)

(3,628)

(7,320)

Net impairment losses on financial assets


1

(7)

(14)

Other income


3

17

36

Operating loss

 

(1,101)

(1,823)

(3,653)

Adjusted LBITDA *

 

(502)

(1,285)

(2,493)

Reorganisation and transactional items


(27)

(65)

(192)

Depreciation


(53)

(55)

(114)

Amortisation


(320)

(259)

(552)

Impairment of financial assets


1

(7)

(14)

Share based payments charge


(200)

(152)

(288)

Operating loss

 

(1,101)

(1,823)

(3,653)

Finance income


-

-

1

Finance costs


(9)

(13)

(26)

Loss before tax

 

(1,110)

(1,836)

(3,678)

Taxation


(10)

266

1,114

Loss for the period after tax

 

(1,120)

(1,570)

(2,564)

Profit for the period from discontinued operations


29

-

-

Loss for the period

 

(1,091)

(1,570)

(2,564)

Other comprehensive income


 

 


Revaluation of property, plant and equipment


-

-

73

Exchange differences on translation of foreign operations


262

(392)

(339)

Total other comprehensive income / (loss)

 

262

(392)

(266)

Total comprehensive loss

 

(829)

(1,962)

(2,830)

 





Basic loss per share





Continuing operations


(3.87p)

(5.49p)

(8.91p)

Discontinued operations


0.10p

0.00p

0.00p

Total

 

(3.77p)

(5.49p)

(8.91p)

Diluted loss per share





Continuing operations


(3.87p)

(5.49p)

(8.91p)

Discontinued operations


0.10p

0.00p

0.00p

Total

 

(3.77p)

(5.49p)

(8.91p)

 

* Loss for the period from continuing operations before net finance costs, tax, depreciation, amortisation, reorganisation and transactional items, impairment charges and share based payment charge


Consolidated Balance Sheet

As at 31 July 2022

 

 

 

 

 

31 July

2022

Unaudited

£000

31 July

2021

Unaudited

£000

31 January

2022

Audited

£000

ASSETS

 

 

 

 

Non-current assets

 

 

 

 

Property, plant and equipment


743

681

751

Right-of-use assets


68

121

94

Intangible assets


10,806

10,619

10,619

Deferred tax assets


2,476

1,658

2,465

Total non-current assets


14,093

13,079

13,929

Current assets


 

 

 

Inventories


80

163

203

Contract assets


1

-

5

Trade and other receivables


592

887

399

Current tax receivable


-

70

70

Prepayments


137

144

163

Cash and cash equivalents


2,315

3,370

2,758

Total current assets


3,125

4,634

3,598

Total assets


17,218

17,713

17,527

LIABILITIES


 

 

 

Non-current liabilities





Borrowings


-

341

-

Lease liabilities


6

73

41

Total non-current liabilities


6

414

41

Current liabilities


 

 

 

Trade and other payables


1,337

1,149

1,379

Contract liabilities


2,116

1,368

1,774

Other tax liabilities


212

205

127

Borrowings


341

57

383

Lease liabilities


73

63

67

Total current liabilities

 

4,079

2,842

3,730

Total liabilities

 

4,085

3,256

3,771

NET ASSETS

 

13,133

14,457

13,756

EQUITY AND LIABILITIES

 

 

 

 

Capital and reserves attributable to equity shareholders

 




Share capital

 

2,894

2,894

2,894

Share premium

 

3,839

3,839

3,839

Other reserves

 

(1,665)

(2,426)

(2,133)

Retained earnings

 

8,065

10,150

9,156

Total equity

 

13,133

14,457

13,756


Consolidated Statement of Cash Flows

For the six months ended 31 July 2022

 

 

 

 

 

 

Six months to 31 July 2022

Unaudited

£000

Six months to 31 July 2021

Unaudited

£000

Year ended 31 January 2022

Audited

£000

 

 

 

 

 

Cash from operating activities





Cash consumed by operations


(217)

(1,332)

(1,614)

Interest received


-

-

1

Interest paid


(9)

(13)

(26)

Income taxes refunded


68

30

28

Net cash outflow from operating activities


(158)

(1,315)

(1,611)






Cash flows from investing activities



 


Payments for property, plant and equipment


(12)

(24)

(36)

Payment of software development costs


(212)

(86)

(340)

Proceeds from disposal of subsidiary


-

327

327

Net cash from investing activities

 

(224)

217

(49)

 

 

 

 


Cash flows from financing activities





Proceeds from issue of share capital


-

10

10

Repayment of borrowings


(44)

(14)

(27)

Payment of lease liabilities


(34)

(30)

(62)

Net cashflow from financing activities

 

(78)

(34)

(79)





 

Net change in cash and cash equivalents

 

(460)

(1,132)

(1,739)

Cash and cash equivalents the beginning of the period


 

2,758

 

4,516

 

4,516

Effects of exchange rate changes on cash and cash equivalents


17

(14)

(19)

Cash and cash equivalents at end of period

 

2,315

3,370

2,758

 


Consolidated Statement of Changes in Equity

 

Unaudited

Share

capital

Share premium

Other reserves

Retained earnings

 

Total

 

£000

£000

£000

£000

£000


 

 

 

 

 

At 1 February 2022

2,894

3,839

(2,133)

9,156

13,756

Loss for the period

-

-

-

(1,091)

(1,091)

Other comprehensive income for the period

-

-

262

-

262

Total comprehensive income for the period

-

-

262

(1,091)

(829)

Share based payment- continuing operations

-

-

206

-

206

At 31 July 2022

2,894

3,839

(1,665)

8,065

13,133













 

Unaudited

Share

capital

Share premium

Other

reserves

Retained earnings

 

Total

 

£000

£000

£000

£000

£000

 

 

 

 

 

 

At 1 February 2021

2,826

3,830

(2,087)

11,701

16,270

Loss for the period

-

-

-

(1,570)

(1,570)

Other comprehensive loss for the period

-

-

(392)

-

(392)

Total comprehensive loss for the period

-

-

(392)

(1,570)

(1,962)

Issue of ordinary shares in relation to deferred business combination consideration

67

-

(67)

-

-

Issue of ordinary shares to share option holders

1

9

(3)

3

10

Lapse of share options

-

-

(16)

16

-

Share based payment charge

-

-

139

-

139

At 31 July 2021

2,894

3,839

(2,426)

10,150

14,457







 

 






 

Audited

Share

capital

Share premium

Other

reserves

Retained earnings

 

Total

 

£000

£000

£000

£000

£000

 

 

 

 

 

 

At 1 February 2021

2,826

3,830

(2,087)

11,701

16,270

Loss for the period

-

-

-

(2,564)

(2,564)

Other comprehensive loss for the period

-

-

(266)

-

(266)

Total comprehensive loss for the period

-

-

(266)

(2,564)

(2,830)

Issue of ordinary shares as consideration for a business combination

67

-

(67)

-

-

Issue of ordinary shares to option holders

1

9

(3)

3

10

Lapsed share options

-

-

(16)

16

-

Translation difference on subsidiary share based payments

-

-

(4)

-

(4)

Share-based payment expense - continuing operations

-

-

310

-

310







At 31 January 2022

2,894

3,839

(2,133)

9,156

13,756

 



 

Notes to the Interim Financial Statements

 

1.  Basis of Preparation

 

The unaudited interim report for the six months to 31 July 2022 does not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. The comparative figures for the year ended 31 January 2022 are extracted from the statutory financial statements which have been reported on by the Company's auditor, RSM UK Audit LLP. The report of the auditor on those accounts was unqualified and did not contain statements under Section 498 to 502 of the Companies Act 2006.

The consolidated interim financial information has been prepared in accordance with International Financial Reporting Standards and on the historical cost basis and using generally recognised accounting principles consistent with those used in the annual report and accounts for the year ended 31 January 2022 and expected to be used for the year ending 31 January 2023.  

This interim report for the six months to 31 July 2022, which complies with IAS 34 'Interim Financial Reporting', was approved by the Board on 10 October 2022.

Hard copies of the interim report are available from the Company at its registered office at Norderstedt House, James Carter Road, Mildenhall, Bury St. Edmunds, England, IP28 7RQ. This interim report will also be made available on the Company's website, www.smartspaceplc.com.

2.  Significant Accounting Policies

The accounting policies and methods of computation applied in this interim report are consistent with those of the annual financial statements for the year ended 31 January 2022, as described in those annual financial statements.

3.  Segmental Analysis

Six months ended 31 July 2022

 

Space Connect

Unaudited

 

 

SwipedOn

Unaudited

 

 

  Anders & Kern

Unaudited

 

Central

costs

Unaudited

 

 

Total

Unaudited

 

£000

£000

£000

£000

£000







Revenue from contracts with customers

305

2,063

1,304

-

3,672

Costs of sale of goods

-

(21)

(888)

-

(909)

Cost of providing services

(2)

(236)

(39)

-

(277)

Gross profit

303

1,806

377

-

2,486

Administrative expenses

(938)

(1,563)

(404)

(686)

(3,591)

Net impairment losses on financial and contract assets

-

1

-

-

1

Other income

-

3

-

-

3

Operating profit / (loss)

(635)

247

(27)

(686)

(1,101)

Adjusted EBITDA/(LBITDA)*

(360)

364

(5)

(501)

(502)

Reorganisation and transactional items included within administrative expenses

(27)

-

-

-

(27)

Depreciation

(3)

(38)

(10)

(2)

(53)

Amortisation

(230)

(80)

(10)

-

(320)

Impairment of financial asset

-

1

-

-

1

Share based payments charge

(15)

-

(2)

(183)

(200)

Operating profit / (loss)

(635)

247

(27)

(686)

(1,101)

Finance income

-

-

-

-

-

Finance costs

-

(3)

(6)

-

(9)

Profit / (loss) profit before tax

(635)

244

(33)

(686)

(1,110)

 

 

 

Six months ended 31 July 2021

 

Space Connect

Unaudited

 

 

SwipedOn

Unaudited

 

 

  Anders & Kern

Unaudited

 

Central

costs

Unaudited

 

 

Total

Unaudited

 

£000

£000

£000

£000

£000







Revenue from contracts with customers

165

1,398

961

-

2,524

Costs of sale of goods

(1)

(3)

(560)

-

(564)

Cost of providing services

(15)

(118)

(32)

-

(165)

Gross profit

149

1,277

369

-

1,795

Administrative expenses

(918)

(1,550)

(411)

(749)

(3,628)

Net impairment losses on financial and contract assets

(3)

(3)

(1)

-

(7)

Other income

-

17

-

-

17

Operating loss

(772)

(259)

(43)

(749)

(1,823)

Adjusted (LBITDA)/EBITDA*

(552)

(180)

34

(587)

(1,285)

Reorganisation and transactional items included within administrative expenses

-

-

(27)

(38)

(65)

Depreciation

(4)

(36)

(11)

(4)

(55)

Amortisation

(209)

(40)

(10)

-

(259)

Impairment of financial asset

(3)

(3)

(1)

-

(7)

Share based payments charge

(4)

-

(28)

(120)

(152)

Operating loss

(772)

(259)

(43)

(749)

(1,823)

Finance income

-

-

-

-

-

Finance costs

-

(5)

(6)

(2)

(13)

Loss before tax

(772)

(264)

(49)

(751)

(1,836)

 

 

Year ended 31 January 2022

 

Space Connect

Audited

SwipedOn

Audited

 

Anders & Kern

Audited

 

Central

costs

Audited

 

 

Total

Audited

 

£000

£000

£000

£000

£000







Revenue from contracts with customers

458

2,953

1,729

-

5,140

Costs of sale of goods

(1)

(18)

(1,049)

-

(1,068)

Cost of providing services

(64)

(284)

(79)

-

(427)

Gross profit

393

2,651

601

-

3,645

Administrative expenses

(1,927)

(3,134)

(874)

(1,385)

(7,320)

Net impairment losses on financial assets

(3)

(11)

-

-

(14)

Other income

-

36

-

-

36

Operating loss

(1,537)

(458)

(273)

(1,385)

(3,653)

Adjusted LBITDA *

(1,082)

(164)

(118)

(1,129)

(2,493)

Reorganisation and transactional items included within administrative expenses

-

-

(83)

(109)

(192)

Depreciation

(6)

(79)

(22)

(7)

(114)

Amortisation

(431)

(100)

(21)

-

(552)

Impairment of financial assets

(3)

(11)

-

-

(14)

Share based payments charge

(15)

(104)

(29)

(140)

(288)

Operating loss

(1,537)

(458)

(273)

(1,385)

(3,653)

Finance income

-

1

-

-

1

Finance costs

-

(11)

(12)

(3)

(26)

Loss before tax

(1,537)

(468)

(285)

(1,388)

(3,678)

* Loss / profit for the period from continuing operations before net finance costs, tax, depreciation, amortisation, reorganisation and transactional items, impairment charges and share based payment charge

4.  Revenue

 

Six months ended 31 July 2022

 

Space Connect

Unaudited

 

SwipedOn

 

Unaudited

 

Anders & Kern

 

Unaudited

 

Total

 

Unaudited

 

£000

£000

£000

£000






Segment revenue

2,064

1,303

3,672

Timing of revenue:





At a point in time

31

35

1,238

1,304

Over time

274

2,029

65

2,368

Total

305

2,064

1,303

3,672

 

Six months ended 31 July 2021

 

Space Connect

Unaudited

 

SwipedOn

 

Unaudited

 

Anders & Kern

 

Unaudited

 

Total

 

Unaudited

 

£000

£000

£000

£000






Segment revenue

165

1,398

961

2,524

Timing of revenue:





At a point in time

30

14

894

938

Over time

135

1,384

67

1,586

Total

165

1,398

961

2,524

 

Year ended 31 January 2022

 

Space Connect

audited

 

SwipedOn

 

Audited

 

Anders & Kern

 

audited

 

Total

 

audited

 

£000

£000

£000

£000






Segment revenue

458

2,953

1,729

5,140

Timing of revenue:





At a point in time

84

37

1,599

1,720

Over time

374

2,916

130

3,420

Total

458

2,953

1,729

5,140

 

5.  Equity

Movement in ordinary shares

Shares issued

 

Share capital

Share premium

Merger reserve

Total

 

Number

Price (p)

£'000

£'000

£'000

£'000

At 31 January 2021

28,255,823

 

2,826

3,830

844

7,500

Issue of ordinary shares as consideration for a business combination

675,411

72.50

67

-

422

489

Issue of ordinary shares to option holders

10,000

101.25

1

9

-

10

At 31 July 2022

28,941,234


2,894

3,839

1,266

7,999

At 31 January 2022

28,941,234

 

2,894

3,839

1,266

7,999

At 31 July 2022

28,941,234


2,894

3,839

1,266

7,999

 

 

 

Movement in other reserves

6 months ended 31 July 2022

Merger reserve

Reverse acquisition reserve

Translation reserve

 

Acquisition deferred consideration reserve

Revaluation reserve

Share option reserve

Total other reserves

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

At 31 January 2022

1,266

(4,236)

133

-

73

631

(2,133)

Currency translation differences

-

-

262

-

-

 

262

Total other comprehensive loss

-

-

262

-

-

-

262

Share based payments charge

-

-

-

-

-

206

206

At 31 July 2022

1,266

(4,236)

395

-

73

837

(1,665)

 

Movement in other reserves

6 months ended 31 July 2021

Merger reserve

Reverse acquisition reserve

Translation reserve

 

Acquisition deferred consideration reserve

Revaluation reserve

Share option reserve

Total other reserves

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

At 31 January 2021

844

(4,236)

473

489

-

343

(2,087)

Currency translation differences

-

-

(392)

-

-

 

(392)

Total other comprehensive loss

-

 

-

(392)

-

-

-

(392)

Settlement of acquisition deferred consideration

422

-

-

(489)

-

-

(67)

Exercise of share options

-

-

-

-

-

(3)

(3)

Lapse of share options

-

-

-

-

-

(15)

(15)

Share based payments charge

-

-

-

-

-

138

138

At 31 July 2021

1,266

(4,236)

81

-

-

463

(2,426)

 

Movement in other reserves

year ended 31 January 2022

 

Merger reserve

Reverse acquisition reserve

Translation reserve

 

Acquisition deferred

consideration reserve

 

 

 

Revaluation

reserve

Share option reserve

Total other reserves

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

At 31 January 2021

844

(4,236)

473

489

-

343

(2,087)

Revaluation of property

-

-

-

-

90

-

90

Deferred tax on property revaluation

-

-

-

-

(17)

-

(17)

Currency translation differences

-

-

(339)

-

-

-

(339)

Total other comprehensive loss

-

-

(339)

-

73

-

(266)

Issue of ordinary shares as consideration for business combination

422

-

-

(489)

-

-

(67)

Issue of ordinary shares to option holders

-

-

-

-

-

(3)

(3)

Lapsed share options

-

-

-

-

-

(16)

(16)

Exchange difference

-

-

-

-

-

(4)

(4)

Share based payments charge

-

-

-

-

-

310

310

At 31 January 2022

1,266

(4,236)

134

-

73

630

(2,133)

 

 

 

 

 

6.  Loss per share

 

Six months

ended

31 July 2022

Unaudited

Six months ended

31 July 2021

Unaudited

Year

ended 31 January 2022

Audited

 

£000

£000

£000

 

Loss attributable to ordinary equity holders of the Company




From continuing operations

(1,120)

(1,570)

(2,564)

From discontinued operations

29

-

-

Total

(1,091)

(1,570)

(2,564)

 

 

 

 


Number

Number

Number

Weighted average number of shares used as denominator in calculating earnings per share

28,941,234

 

28,606,062

28,780,768

Adjustment for calculation of diluted earnings per share

-

-

-

Weighted average number of shares used as denominator in calculating diluted earnings per share

28,941,234

28,606,062

28,780,768

 

 

 

 

 

Pence

Pence

Pence

Basic loss per share:

 

 

 

From continuing operations

(3.87p)

(5.49p)

(8.91p)

From discontinued operations

0.10p

0.00p

0.00p

Total

(3.77p)

(5.49p)

(8.91p)

 

 

 

 

Diluted loss per share:

 

 

 

From continuing operations

(3.87p)

(5.49p)

(8.91p)

From discontinued operations

0.10p

0.00p

0.00p

Total

(3.77p)

(5.49p)

(8.91p)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7.  Cash flow information

 

 

Six months to 31 July 2022

Unaudited

£000

Six months to 31 July 2021

Unaudited

£000

Year ended 31 January 2022

Audited

£000

 

 

 

 

Loss before income tax from continuing operations

(1,110)

(1,835)

(3,678)

Adjustments for:

 

 


  Depreciation and amortisation

373

312

666

  Non-cash employee benefit expense

200

152

288

  Net gain on sale of non-current assets

-

2

-

  Finance costs - net

9

13

25

  Credit losses

(1)

7

14

  Net exchange differences

22

(2)

(9)

Change in operating assets and liabilities of continuing operations




  Movement in trade and other receivables

(112)

(358)

114

  Movement in contract assets

4

4

-

  Movement in inventories

122

(73)

(113)

  Movement in prepayments

27

(33)

(53)

  Movement in trade creditors

(31)

291

123

  Movement in other creditors

16

(94)

276

  Movement in deferred income

264

282

733

Cash generated from continuing operations

(217)

(1,332)

(1,614)





Profit before income tax from discontinued operations

29

-

-

Adjustments for:




  Depreciation and amortisation

-

-

-

  Impairment of intangible assets

-

-

-

  Non-cash employee benefit expense

-

-

-

  Finance costs - net

-

-

-

  Credit losses

-

-

-

  Loss on sale of non-current assets

-

-

-

  Net exchange differences

(2)

-

-

Loss on sale of discontinued operations

-

-

-

Change in operating assets and liabilities of discontinued operations

-

-

-

  Movement in trade and other receivables

(65)

-

-

  Movement in contract assets

-

-

-

  Movement in prepayments

-

-

-

  Movement in trade creditors

38

-

-

  Movement in other creditors

-

-

-

  Movement in contract liabilities

-

-

-

Cash generated from discontinued operations

-

-

-

 

 

 

 

Cash used in operations

(217)

(1,332)

(1,614)

 

 

 

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