TIDMCTEA
CATENAE INNOVATION PLC
("Catenae" or the "Company")
HALF YEARLY REPORT
Catenae Innovation Plc ("Catenae" or the "Company"), the AIM quoted
(AIM: CTEA) provider of digital media and technology, announces its half
yearly report for the six months ended 31 March 2019.
HIGHLIGHTS
-- OnSuite Proof of Concept agreements converted into Contracts
-- Sequestrum (Blockchain) product launched as both standalone product and
integrated into existing product ranges
-- Expansion to business sectors outside of Football, including Buildings
and Facilities Management, Charities and Rugby
-- Post period end, a Head of Sales appointed along side a lead generating
marketing partner
Tony Sanders, Chief Executive, said:
"The six months under review have seen further progress of the cost
reduction exercise combined with growth in the sales of the OnSuite
products (i.e. OnSite, OnGuard and OnSide). The Company is now in a
position where it is taking advantage of the existing product suite as
well as continuing to look at opportunities to expand into new sectors
and diversify its revenue streams."
This announcement contains inside information for the purposes of
Article 7 of EU Regulation 596/2014.
For further information:
Catenae Innovation Plc
Tony Sanders Tel: 020 7929 7826
Cairn Financial Advisers LLP, Nominated Adviser
Liam Murray / Jo Turner / Ludovico Lazzaretti
Tel: 020 7213 0880
Alexander David Securities Limited, Joint Broker
David Scott / James Dewhurst
Tel: 020 7448 9820
Turner Pope Investments Limited, Joint Broker
Andrew Thacker
Tel: 020 3621 4120
CHIEF EXECUTIVE'S STATEMENT
This period has seen further progress of the cost reduction exercise
combined with year-on-year growth in the sales for the same H1 period of
the OnSuite products (i.e. OnSite, OnGuard and OnSide). The team is now
in place to take the revenue generating sections of the business forward
to create positive value.
Contracts
In December 2018, STM Security UK Ltd signed a contract for OnGuard Plus
(OnGuard incorporating Sequestrum), which provides increased visibility
and proof of work for their man-guarding sector. This was followed in
January 2019 with the launch of OnSite (incorporating Sequestrum, the
Company's proprietary distributed ledger technology), an inspection and
auditing tool that utilises blockchain to provide immutable records and
proof of work for digital inspections. The first such contract was
signed in January 2019 with Firedoor Guardian Ltd for use in their fire
door inspection service. The value of this contract proved that the
market will pay for 'best in class' products.
As previously announced, we have also seen an increasing number of
contracts being signed following successful proof of concept agreements.
The Company has continued to target the football sector with its OnSide
product and has signed a number of contracts as well as continuing to
carry out proof of concept agreements with new clubs. In January 2019,
the first non-football proof of concept agreement for OnSide was signed
with the Harlequins Foundation the community arm of Harlequins Rugby,
taking the product into the Rugby sector, and post year-end agreed a
contract with a Charity organisation that has no link to football or
sport in general.
In addition, the Company has integrated Sequestrum, Catenae's
distributed ledger technology (blockchain), into its core product suite,
providing clients with the ability to store critical and regulatory
reports in an immutable form within the Sequestrum repository, providing
auditable proof of both the existence of the report as well as its
original content.
Sales Team
Post period end, in May 2019, the Board announced the appointment of a
Head of Sales. One of his first actions has been the appointment of a
leading marketing partner to engage targeted organisations focused upon
the core sectors for the OnSuite products. Although in its early stages,
we are already seeing an increase in pipeline activity and appointments
with potential new customers.
Trust in Media Joint Venture
As announceed on 26 March 2018, the Company entered into a Joint
Venture ("JV") with Martin Heath and that JV would trade as Trust in
Media Ltd. The board has now taken steps to place Trust in Media Ltd
into liquidation as that venture has not performed as expected. The
purpose of the JV was to produce payment processing, copyright and
intellectual property solutions, initially within the Media industry,
utilising a combination of private and public blockchain technologies
including Catenae's Sequestrum.
Funding
The Board has continued to review the expenditure of the business to
ensure that the appropriate resources are in place to allow the Company
to focus on marketing and selling the products that are now developed.
In addition, the Board has continued to manage the balance sheet with
net liabilities reduced to GBP399,980 (30 Sept 2018: GBP891,929).
During the period, the Company raised funds through the issue of shares
to support the development of the business. The Company raised
GBP995,000 cash and settled GBP95,055 of services through the issue of
shares. The Company continues to carefully manage its working capital
position and is currently considering a number of funding opportunities.
Further announcements will be made in due course.
Outlook
The board is also looking to further strengthen its capabilities and
expects to announce changes in due course.
The Company is now in a position where it is taking advantage of the
existing product suite and is seeing growth in terms of potential
pipeline and converted sales. The Company continues to look at
opportunities that enable it to expand its reach into new sectors and to
significantly increase its growth.
Tony Sanders
Chief Executive Officer
STATEMENT OF COMPREHENSIVE INCOME
Unaudited Unaudited Audited year
six months ended six months ended ended
31 March 31 March 30 Sept
2019 2018 2018
GBP GBP GBP
Revenue 68,857 10,372 157,218
Cost of sales - - -
----------------- ----------------- -------------
Gross profit 68,857 10,372 157,218
Administrative expenses (572,134) (562,451) (1,282,027)
(572,134) (562,451) (1,282,027)
----------------- ----------------- -------------
Loss from operations (503,277) (552,079) (1,124,809)
Net Finance income/(expense) 44 11 (2,460)
Loss before taxation (503,233) (552,068) (1,127,269)
Taxation credit - - 20,481
----------------- ----------------- -------------
Total comprehensive loss for the year (503,233) (552,068) (1,106,788)
================= ================= =============
Attributable to equity shareholders of
the parent (503,233) (552,068) (1,106,788)
================= ================= =============
Total basic and diluted loss per share (0.04) (0.05) (0.06)
There were no comprehensive income and expense items (2018: nil) other
than those reflected in the above income statement. All results relate
to continuing activities.
STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 March 31 March 30 Sept
2019 2018 2018
Note GBP GBP GBP
Non-current assets
Intangible assets 11 11 11
11 11 11
Current assets
Trade and other receivables 101,394 42,439 48,864
Cash and cash equivalents 319,146 125,846 49,105
------------ ------------ ------------
420,540 168,285 97,969
Current liabilities
Trade and other payables (651,530) (741,025) (674,247)
Interest-bearing loans (169,001) (158,300) (315,662)
------------ ------------ ------------
(820,531) (899,325) (989,909)
Net Liabilities (399,980) (731,029) (891,929)
------------ ------------ ------------
Capital and reserves attributable to equity holders
of the company
Share capital 4 3,173,601 1,925,435 2,078,601
Share premium account 17,068,371 18,124,709 16,999,644
Shares to be issued 18,700 50,000 187,245
Share reserve (83,333) (1,250,000) (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 (34,429,808) (33,433,662) (33,926,575)
------------ ------------ ------------
Total Equity (399,980) (731,029) (891,929)
------------ ------------ ------------
STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 March 2019 31 March 2018 30 Sept 2018
GBP GBP GBP
Loss for the period (503,233) (552,068) (1,106,788)
Adjustments for:
Net bank and other interest (income) / charges (44) 2,121 2,460
Issue of share options / warrant charge - 6,318 68,126
Services settled by the issue of shares 63,782 38,000 317,513
Net (loss) before changes in working capital (439,495) (505,629) (718,689)
(Increase) / decrease in trade and other
receivables (52,530) 34,699 28,272
(Decrease) / increase in trade and other
payables (22,720) (321,816) (411,961)
-------------- -------------- -------------
Cash from operations (514,745) (792,746) (1,102,378)
Interest received 44 11 15
Interest paid - - (2,475)
Net cash flows from operating activities (514,701) (792,735) (1,104,838)
-------------- -------------- -------------
Investing activities
Investment in joint venture - (10) (10)
-------------- -------------- -------------
Net cash flows from investing activities - (10) (10)
-------------- -------------- -------------
Financing Activities
Issue of ordinary share capital 931,403 305,000 381,500
Repayment of loan (210,842) (241,227) (375,090)
New loans raised 64,181 105,000 397,725
-------------- -------------- -------------
Net cash flows from financing activities 784,742 168,773 404,135
-------------- -------------- -------------
Net increase / (decrease) in cash 270,041 (623,972) (700,713)
Cash and cash equivalents at beginning of
period 49,105 749,818 749,818
Cash and cash equivalents at end of period 319,146 125,846 49,105
-------------- -------------- -------------
STATEMENT OF CHANGES IN EQUITY
Share Share Shares to Other Retained Total
Capital Premium be issued reserves losses Equity
GBP GBP GBP GBP GBP GBP
---------- ------------ ---------- ----------- ------------- ----------
Balance at
31 March
2018 1,925,435 18,124,709 50,000 12,602,489 (33,433,662) (731,029)
---------- ------------ ---------- ----------- ------------- ----------
Loss for
the
period - - - - (554,720) (554,720)
Conclusion
of
defaulting
shares
issue - (1,166,667) - 1,166,667 - -
Share issue
agreed in
advance - - 137,245 - - 137,245
Share
capital
issued 153,166 41,602 - - - 194,768
Share
options
charge - - - - 61,807 61,807
---------- ------------ ---------- ----------- ------------- ----------
Balance at
30 Sept
2018 2,078,601 16,999,644 187,245 13,769,156 (33,926,575) (891,929)
---------- ------------ ---------- ----------- ------------- ----------
Loss for
the
period - - - - (503,233) (503,233)
Share issue
agreed in
advance - - (168,545) - - (168,545)
Share
capital
issued 1,095,000 68,727 - - - 1,163,727
Share
options
charge - - - - - -
---------- ------------ ---------- ----------- ------------- ----------
Balance at
31 March
2019 3,173,601 17,068,371 18,700 13,769,156 (34,429,808) (399,980)
---------- ------------ ---------- ----------- ------------- ----------
NOTES TO THE HALF YEARLY REPORT
1. General information
The principal activity of Catenae Innovation Plc ("Catenae" or "the
Company") is the provision of digital media and technology.
Catenae is incorporated in the United Kingdom with registration number
4689130. Catenae is domiciled in the United Kingdom and has its
registered office at 27 Old Gloucester Street, London WC1N 3AX, and this
is its principal place of business for the Company is 199 Bishopsgate,
London
EC2M 3TY.
Catenae's shares are quoted on the AIM market of the London Stock
Exchange.
Catenae's financial statements are presented in Pounds Sterling (GBP).
This financial information has been approved for issue by the Board of
Directors on 27 June 2019.
2. Basis of preparation
The financial information in the half yearly report has been prepared
using the recognition and measurement principles of International
Accounting Standards, International Financial Reporting Standards and
Interpretations adopted for use in the European Union (collectively
Adopted IFRSs). The principal accounting policies used in preparing the
half yearly report are those the Company expects to apply in its
financial statements for the year ending 30 September 2019 and are
unchanged from those disclosed in the Directors' Report and financial
statements for the year ended 30 September 2018.
The financial information for the six months ended 31 March 2019 and the
six months ended 31 March 2018 is unaudited and does not constitute the
Company's statutory financial statements for those periods. The
comparative financial information for the full year ended 30 September
2018 has, however, been derived from the audited statutory financial
statements for that period. A copy of those statutory financial
statements has been delivered to the Registrar of Companies.
While the financial figures included in this half-yearly report have
been computed in accordance with IFRSs applicable to interim periods,
this half-yearly report does not contain sufficient information to
constitute an interim financial report as that term is defined in IAS
34.
Going concern
As stated in the accounts for the year to 30 September 2018, the future
business model of the Company is based around the generation of
sustainable revenues and profits through strategic partnerships and
internal projects. As described in the Chief Executive's statement,
progress has been and continues to be made to develop the Company's
activities and associated revenues. However, as also noted in the 30
September 2018 accounts, the Company needs to raise further funds from
the placing of shares or through other means, whilst the revenues and
profits from these solutions are fully developed.
During the period the Company has raised funds of GBP995,000 through the
issuing of shares for cash and settled GBP95,055 of services through the
issue of shares.
In line with the plans and projections prepared by the Board, the
Company's activities continue to build, however in accordance with those
plans, in the short term the Company needs to continue to raise funds
from a combination of trading and placement of shares to fund its
activities.
3. Loss per share
The calculation of the basic loss per share is based on the loss
attributable to ordinary shareholders divided by the average weighted
number of shares in issue during the period. The calculation of diluted
loss per share is based on the basic loss per share, adjusted to allow
for the issue of shares and the post tax effect of dividends and
interest, on the assumed conversion of all other dilutive options and
other potential ordinary shares.
There were 162,702,116 share options and 110,931,460 share warrants
outstanding at 31 March 2019 (2018: 163,213,116 and 385,098,130),
however the figures have not been adjusted to reflect conversion of
these share options as the effects would be anti-dilutive.
Weighted Weighted
Loss for 6 months to average Loss for 6 months to average
31 March 2019 number of Per share amount 31 March 2018 number of Per share amount
GBP shares (pence) GBP shares (pence)
(503,233) 1,321,073,786 (0.04) (552,068) 1,120,104,463 (0.05)
4. Share Capital
31 March 30 Sept
2019 2018
Number GBP Number GBP
Allotted, called up and
fully paid
Ordinary shares of 0.1p 3,173,601,652 3,173,601 2,078,601,652 2,078,601
3,173,601,652 3,173,601 2,078,601,652 2,078,601
------------- --------- ------------- ----------
On 7 November 2018, the Company issued 500,000,000 ordinary shares at a
price of 0.12 pence per share for a cash consideration of GBP524,945 and
for settlement of outstanding trade payables of GBP75,055.
On 5 March 2019, the Company issued 595,000,000 ordinary shares at a
price of 0.10 pence per share for a cash consideration of GBP575,000 and
for the settlement of outstanding trade payables of GBP20,000.
5. Availability of the Half Yearly Report
Copies of the half yearly report are available to shareholders on the
Company's website at www.catenaeinnovation.com and from the Company's
trading address: 199 Bishopsgate, London EC2M 3TY.
(END) Dow Jones Newswires
June 28, 2019 02:00 ET (06:00 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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