Half Yearly Report
27 September 2013
Proxama Plc
("Proxama" or the "Company")
Interim Results
Proxama, the Near Field Communication ("NFC") mobile commerce company, is pleased to announce interim results for six months ended 30 June 2013.
A copy of the unaudited interim financial statement will be available on the Company's website www.proxama.com.
For further information, please visit www.proxama.com or contact:
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Proxama Plc |
+44 20 7959 2298 |
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Coen van Breda/Neil Garner
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Grant Thornton UK LLP (Nominated Adviser) |
+44 20 7383 5100 |
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Colin Aaronson/David Hignell/Jamie Barklem
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SI Capital Limited (Broker) |
+44 1483 413500 |
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Nick Emerson/Andy Thacker |
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Chairman's statement
I am pleased to present the results for our underlying business, Proxama Solutions Limited, formerly Proxama Limited, for the six months ended 30 June 2013. Historical financial information in respect of Proxama Limited for the three years ended 31 December 2012 was presented in the Company's AIM admission document. The financial information set out below covers a period prior to the reverse takeover of Longships plc and the re-admission to AIM of the enlarged group, renamed Proxama plc, on 23 August 2013.
Our business
Proxama is a next generation m-commerce company utilising NFC (Near Field Communications) and other technologies to connect the physical and digital worlds.
We provide services and products that enable our customers which include mobile operators, banks, brands, retailers and card issuers, to deploy mass market consumer mobile payment and marketing services all from one convenient mobile wallet.
An example of how we do this is the retailer, brand or their ad agency can set up campaigns through Proxama's TapPoint marketing platform to extend their existing physical world campaigns onto mobile. This allows consumers to interact with the offer / call to action digitally even in the physical world and can retain the offer / call to action on their mobile phone for future redemption of the loyalty / voucher or other campaign action. All the consumer has to do is simply "Tap" their NFC enabled mobile phone on outdoor advertising, in store sku or product labels, bar mats, beer pumps or any other physical asset that has an NFC tag to receive and store the offer on their mobile device.
Proxama's TapPoint platform does not stop there. The consumer can simply touch their phone onto the POS to redeem the offer stored on their phone and touch again to pay with their mobile credit card which we have ported for our card issuer / bank customers into their mobile wallet.
Using Proxama's proprietary technology our customers can provide a full commerce cycle service, from discovery through to redemption, payment and loyalty updates.
Proxama provides off the shelf white label products and services which are customisable as well as providing complete bespoke solution development depending on our customer's needs.
2013 focus
In the first half of the financial year Proxama focused on building its platform, products and services in preparation for the anticipated acceleration in NFC adoption and mobile commerce and we continue to work to secure key blue chip customer and partner relationships. We expect that the second half of the year will see us announcing some of these key relationships. Although we do not believe the necessary infrastructure and NFC smart phone take up will be fully established until 2015 we anticipate very rapid growth from here.
AIM listing and future funding
Proxama Limited implemented its strategy to gain access to funds to help fund the growth of Proxama's business through its reverse into Longships plc. As stated in the company's AIM admission document, we plan to raise additional funds through a placing of shares in the next few months to execute our global ambitions in this very exciting growth market.
David Bailey
Chairman
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Proxama Solutions Limited |
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Condensed statement of comprehensive income |
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For the six months ended 30 June 2013 |
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Six months |
Six months |
Year |
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to 30/06/13 |
to 30/06/12 |
to 31/12/12 |
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£ |
£ |
£ |
|
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Continuing operations |
||||
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Revenue |
|
344,344 |
808,911 |
1,381,096 |
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Cost of sales |
(149,005) |
(740,629) |
(1,077,011) |
|
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Gross profit |
195,339 |
68,282 |
304,085 |
|
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Administrative expenses |
(1,546,088) |
(650,434) |
(2,146,587) |
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Other operating income |
1,800 |
389 |
32,858 |
|
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Operating loss |
(1,348,949) |
(581,763) |
(1,809,644) |
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Financial income |
526 |
- |
1,740 |
|
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Financial expense |
(9,663) |
(1,733) |
(3,360) |
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Loss on ordinary activities before taxation |
(1,358,086) |
(583,496) |
(1,811,264) |
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Taxation |
80,779 |
106,749 |
214,352 |
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Loss for the period attributable to equity |
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holders of the company |
(1,277,307) |
(476,747) |
(1,596,912) |
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Loss per share - basic and fully diluted |
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(0.0596) |
(0.0282) |
(0.0854) |
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Proxama Solutions Limited |
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Condensed statement of financial position |
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As at 30 June 2013 |
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As at |
As at |
As at |
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30/06/13 |
to 30/06/12 |
to 31/12/12 |
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£ |
£ |
£ |
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Non-current assets |
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Property, plant and equipment |
101,619 |
100,578 |
114,980 |
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Other intangible assets |
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263,097 |
7,941 |
7,487 |
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364,716 |
108,519 |
122,467 |
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Current assets |
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Trade and other receivables |
200,236 |
368,115 |
423,740 |
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Current tax receivables |
295,131 |
168,765 |
214,352 |
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Cash and cash equivalents |
54,719 |
1,027,479 |
361,379 |
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550,086 |
1,564,359 |
999,471 |
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Current liabilities |
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Trade and other payables |
(422,087) |
(232,569) |
(253,605) |
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Current proportion of |
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long-term borrowings |
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(12,454) |
(11,453) |
(11,954) |
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(434,541) |
(244,022) |
(265,559) |
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Net current assets |
115,545 |
1,320,337 |
733,912 |
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Non-current liabilities |
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Non-current borrowings |
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(478,978) |
(38,399) |
(32,271) |
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Net assets |
1,283 |
1,390,457 |
824,108 |
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Equity |
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Share capital |
2,170 |
2,012 |
2,116 |
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Share premium |
4,070,029 |
3,280,187 |
3,800,083 |
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Share option reserve |
203,041 |
39,943 |
73,759 |
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Option premium on convertible notes |
55,200 |
- |
- |
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Capital reserve |
209,791 |
209,791 |
209,791 |
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Retained earnings |
(4,538,948) |
(2,141,476) |
(3,261,641) |
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Equity shareholders' funds |
1,283 |
1,390,457 |
824,108 |
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Proxama Solutions Limited |
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Condensed statement of cash flows |
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For the six months ended 30 June 2013 |
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Six months |
Six months |
Year |
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to 30/06/13 |
to 30/06/12 |
to 31/12/12 |
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£ |
£ |
£ |
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Cash flows from operating activities |
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Loss before taxation |
(1,358,086) |
(583,496) |
(1,811,264) |
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Adjustments for: |
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Depreciation of property, plant and equipment |
26,382 |
14,440 |
37,799 |
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Amortisation of intangible assets |
521 |
344 |
798 |
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Financial income |
(526) |
- |
(1,740) |
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Financial expense |
9,663 |
1,733 |
3,360 |
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Share-based payments |
129,282 |
29,503 |
63,319 |
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(1,192,764) |
(537,476) |
(1,707,728) |
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(Increase)/decrease in trade and other receivables |
(36,496) |
(98,895) |
80,480 |
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Increase/(decrease) in trade and other payables |
168,482 |
(21,003) |
33 |
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Cash used in operations |
(1,060,778) |
(657,374) |
(1,627,215) |
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Income taxes received |
- |
27,641 |
89,657 |
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Net cash used in operating activities |
(1,060,778) |
(629,733) |
(1,537,558) |
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Cash flows used in investing activities |
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Interest received |
526 |
- |
1,740 |
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Purchase of intangible assets |
(256,131) |
(2,614) |
(2,614) |
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Proceeds from the disposal of property, plant and equipment |
- |
- |
- |
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Purchase of property, plant and equipment |
(13,021) |
(48,808) |
(86,569) |
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Net cash used in investing activities |
(268,626) |
(51,422) |
(87,443) |
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Cash flows from financing activities |
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Interest paid |
(1,384) |
(1,733) |
(3,360) |
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Proceeds from issue of share capital |
530,000 |
1,569,700 |
1,854,700 |
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Proceeds from issue of convertible notes |
500,000 |
- |
- |
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Repayment of borrowings |
(5,872) |
(10,004) |
(15,631) |
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Net cash from financing activities |
1,022,744 |
1,557,963 |
1,835,709 |
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Net (decrease)/increase in cash and cash equivalents |
(306,660) |
876,808 |
210,708 |
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Cash and cash equivalents at beginning of the period |
361,379 |
150,671 |
150,671 |
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Cash and cash equivalents at end of the period |
54,719 |
1,027,479 |
361,379 |
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Proxama Solutions Limited |
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Condensed statement of changes in equity |
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For the six months ended 30 June 2013 |
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Retained |
Share |
Share |
Option |
Capital |
Share |
Total |
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earnings |
capital |
premium |
Premium on |
reserve |
option |
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reserve |
convertible |
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reserve |
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notes |
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£ |
£ |
£ |
£ |
£ |
£ |
£ |
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1 January 2012 |
(1,664,729) |
1,686 |
1,685,813 |
- |
209,791 |
10,440 |
243,001 |
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Loss for the year ended |
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31 December 2012 |
(1,596,912) |
- |
- |
- |
- |
- |
(1,596,912) |
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Share-based payments |
- |
- |
- |
- |
- |
63,319 |
63,319 |
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New shares issued |
- |
430 |
2,114,270 |
- |
- |
- |
2,114,700 |
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31 December 2012 |
(3,261,641) |
2,116 |
3,800,083 |
- |
209,791 |
73,759 |
824,108 |
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Loss for the six months |
|||||||
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ended 30 June 2013 |
(1,277,307) |
- |
- |
- |
- |
- |
(1,277,307) |
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Share-based payments |
- |
- |
- |
- |
- |
129,282 |
129,282 |
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Issue of convertible |
|
|
|
|
|
|
|
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notes |
- |
- |
- |
55,200 |
- |
- |
55,200 |
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New shares issued |
- |
54 |
269,946 |
- |
- |
- |
270,000 |
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30 June 2013 |
(4,538,948) |
2,170 |
4,070,029 |
55,200 |
209,791 |
203,041 |
1,283 |
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This information is provided by RNS
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