TIDMACT
RNS Number : 3251C
Actual Experience PLC
12 June 2023
12 June 2023
Actual Experience plc
(the "Company" or "Actual Experience" or "Actual")
UNAUDITED CONSOLIDATED INTERIM RESULTS
for the six months ended 31 March 2023
Company turnaround substantially completed, with a clear focus
on sales execution
Actual Experience plc (AIM: ACT), the Digital Workplace
Management Platform (DWMP) company, announces its unaudited
consolidated interim results for the six months ended 31 March
2023.
Financial Highlights
-- Revenue of GBP0.23m (H1 FY22: GBP0.82m)
-- Gross loss of GBP0.07m (H1 FY22: GBP0.35m)
-- Operating loss of GBP2.54m (H1 FY22: loss of GBP2.84m)
-- Loss per share of 1.16p (H1 FY22: loss per share of 4.97p)
-- Cash and cash equivalents at 31 March 2023 of GBP3.10m (30 September 2022: GBP2.87m)
Operational Highlights
-- Successful early commercial release of the new Digital
Workplace Management Platform (DWMP) in October with Defra, leading
to the first sale of the Company's new product offering less than 6
months after launching.
-- Significant automation of the delivery process for DWMP
content, significantly reducing the load on manual resources and
facilitating operational leverage.
-- Sales pipeline increasing due to a combination of
reinvigorated partner relations and the bolstering of the sales
team.
-- Several significant pipeline opportunities progressed to
advanced stages in the funnel during the period.
-- Further strengthening of the Board with the addition of two
highly experienced Non-Executive Directors.
-- Recruitment of an experienced CEO after the period end,
marking the beginning of the next phase of the Company's
growth.
Current trading and outlook
-- Market demand is reflected in the increasing volume of
interest in Digital Workplace Experience (DEX) as shown by
commentary from Gartner and Forrester. Organisations will
prioritise investment in technologies that optimise their digital
infrastructure for the new era of hybrid working, often termed 'the
new ways of working'. The Company's board believes that it is in a
strong position to capitalise on this significant market
opportunity.
-- Feedback from partners and enterprises for our recently
launched DWMP continues to be very positive, and we will seek to
maintain our technology leadership by developing a rich roadmap of
features and capabilities.
-- With the recruitment of an experienced CEO, the turn-around
phase is largely complete and resources are increasingly focused on
optimising sales execution to deliver strong revenue growth.
-- Immediate focus remains on generating orders from our more
advanced sales opportunities. In addition, sales and marketing
outreach campaigns are delivering increased numbers of prospects
into our sales pipeline and we will seek to ensure efficient
progression through the sales stages.
-- Our first DEX customer, Defra, remains an important
relationship for Actual, and we will seek to expand the size and
scope of this deployment while also working to engage with other
central government departments.
-- We will continue to tightly manage operating expenses and
seek to derive further economies while investing in sales and
marketing activities.
Kirsten English, Chair of Actual Experience plc, said: "As
detailed in the 2022 Annual Report, Actual Experience has
implemented fundamental and extensive changes to the business in
the last 12 months. Since the beginning of the current financial
year, the Company has completed the goals that were set by the
Board for this turnaround phase, and the focus will now move to
execution and growth with predictable revenue and strong customer
fulfilment at the top of the agenda. With the new CEO, fresh ideas
and a proven track record of execution will open the next chapter
for Actual Experience."
Iain McCready, CEO of Actual Experience plc, said: "I'm
delighted to be joining Actual at this important time. The measures
taken by the Board and Leadership team over the last year have
positioned the Company to leverage its excellent technology to
establish a leading position in the rapidly developing DEX
technology market sector. My focus will be to translate this
potential into strong revenue growth through effective sales and
marketing execution."
Enquiries:
Actual Experience plc Tel: +44 (0)207 129
Iain McCready, CEO 1474
Steve Bennetts, CFO
Singer Capital Markets Advisory LLP Tel: +44 (0)207 496
Shaun Dobson 3000
James Fischer
Turner Pope Investments (TPI) Ltd Tel: +44 (0)203 657
James Pope 0050
Andy Thacker
Flagstaff Strategic and Investor Communications Tel: +44 (0)207 129
Tim Thompson 1474
Mark Edwards actual@flagstaffcomms.com
Andrea Seymour
Anna Probert
About Actual Experience
Actual Experience's goal is to make the digital world work for
everyone, everywhere, all of the time. As the working world evolves
post-pandemic, the global shift to a flexible hybrid model has
brought with it a significant challenge; how do businesses create
an environment that gives their people what they need to thrive,
whilst protecting the commercial efficiency of the business and
driving growth at the same time?
For further information please visit
www.actual-experience.com
Market
As the emerging technology category of Digital Employee
Experience (DEX) continues to gain rapid momentum, analysts are
increasingly emphasising its importance and commenting that this
will become a major area of enterprise focus and investment in the
coming years.
The market definition and scope of what DEX entails is still in
its infancy, with an element of confusion arising from multiple
technology suppliers promoting differing visions, each aligned to
their individual capabilities.
With a standardised approach yet to be defined within the
market, Actual's DWMP offering is well placed to provide a
practical starting point for enterprise DEX transformations. The
Company's proprietary HX Score is unique in its capability to
provide a reliable baseline of the overall employee experience of
the digital workplace as well as delivering a prioritised list of
improvement projects, ranked by business impact and enterprise
value creation. The Company's technology is quick to deploy and is
partner agnostic, meaning it forms an ideal foundation to any wider
DEX transformation programme.
Product development
At the beginning of the period, the Company launched an early
release of its newly built DWMP. During a six-month pilot, the team
worked closely with the customer, Defra, to understand their use of
the insights and data, making iterative improvements
month-on-month. The DWMP showed quantified before and after
productivity savings due to improvements made by the customer. At
the end of the pilot, the Company was delighted to announce the
first sale of the new platform. The Actual Experience team were
praised for their deep knowledge of the complex area of Digital
Experience Management and the usefulness of the DWMP insights,
which allow firms to navigate successfully through transformational
change over the total enterprise.
Following the early commercial release, the CPO set up a new
cross-functional process encouraging the sales and customer facing
teams to connect openly with the R&D and product functions
within the business. The Company remains committed to building and
improving the DWMP based on tested market problems to ensure the
commercial viability of the platform.
After the period end, the next version of the product was
released, with extensive improvements and new features including a
new Equality Grade metric (which models how even the distribution
of digital wellness is across an organisation) to better support
business leaders with DE&I initiatives.
In addition to customer-facing improvements, the Company also
made substantial progress in automating the customer insights
creation process, reducing the amount of manual resource needed to
service clients on a continuous basis.
Several new development opportunities have been identified to
increase the Company's product portfolio, including a lighter
version of the platform with a number of use cases and a regulatory
based tool to track the impact of hybrid working patterns on scope
3 carbon emissions.
Sales & Marketing
During the period, Actual continued to apply the lessons learned
from early engagements with prospective customers and further
refined its sales focus and approach, both in terms of partner
projects and direct sales efforts. This has led to positive sales
pipeline development, with increased numbers of active prospects
and also good momentum through the various sales stages. This
progress has been further supported by greater enterprise awareness
of, and focus on, the need for transformation of their digital
infrastructure to ensure efficient business processes in the more
complex, hybrid working environment.
As noted in the Company's Annual Report, sales cycles remain
lengthy, and efforts to reduce this have been hampered by the
challenging general business environment and, specifically, the
weak macroeconomic conditions. Notwithstanding this, several of our
sales engagements are now progressing to the point where customer
decisions will be made, and we hope to be able to announce further
customer orders in the near future.
Over the period, the Company has formed a strong market
positioning based on learnings from the sales cycles and the
commentary on the emergent DEX category. A key priority moving
forward will be to re-establish a marketing function within the
business to further drive sales activities.
Strategy
As a small company with market-leading technology, we will
continue to leverage our existing strong relationships with Verizon
and Vodafone while putting in place further sales and technology
partnerships with leading technology companies. In this way, we are
planning to achieve significant market penetration by accessing our
partners' large global enterprise customers.
At the same time, our direct sales team will continue to engage
directly with prospective customers to ensure we continue to
understand evolving market requirements and trends.
Typically, new enterprise sales engagements will commence with a
subset of the total addressable opportunity in each account, such
as employees in a region, country, or division. Over time, we
expect that the initial engagement will expand to address the whole
digital estate. This is the approach adopted with Defra, and we
term this a 'land and expand' strategy.
As well as growing our customer base in this way, a further
driver of top-line growth is expected to arise from new product
expansion initiatives that are planned in our development roadmap.
An example of this is the opportunity to develop further our work
that leverages our existing technology to estimate the carbon
impact (scope 3 emissions) of commuting and business travel
dynamics across an organisation.
This product development road map is aimed at ensuring we
maintain our technology leadership in the DEX sector. In addition,
we will continue to enhance the scalability of our service clouds,
driving down per-seat costs and ensuring that we can handle the
demands of the world's largest enterprises.
Board Changes
The Board has been significantly strengthened in the period by
the appointment, in October 2022, of Harmesh Suniara and Barry
Hoffman, in February 2023. Harmesh and Barry bring to the board
extensive experience in capital markets and people management
respectively. After the period end, in June 2023, we welcomed Iain
McCready to the board as CEO and Executive Director.
After almost ten years of service, Stephen Davidson stepped down
from the board in March 2023 and his contribution to the
development of the Company is appreciated.
Outlook
With the recent appointment of a new CEO, the turnaround of the
Company is now largely complete. Management and the board are now
keenly focused on taking the business to the next stage of growth
and achieving its strategic objectives.
Since launching the new platform at the start of the current
financial year, the Company continues to receive consistent and
positive feedback from both commercial prospects and partners
alike, as demonstrated by a growing sales pipeline and
reinvigorated relationships with our partners. In late May 2023,
after the period end, the Company completed development on the next
version of the platform, enhancing the offering based on market
feedback. This resulted in significant improvement in both the
capability and usefulness of the data. Furthermore, several
promising additional value creation opportunities have been
identified and the resulting rich product development roadmap will
lead to value-enhancing adjacent features and capabilities.
The Digital Employee Experience (DEX) category is emergent and
there remains a general lack of clarity for business leaders on how
to deliver effective digital workplaces. Actual's platform is
outcome-oriented, which means it is perfectly placed within the
market to guide customers through these complex, enterprise-wide
transformation projects.
This requirement is clearly a market problem which the DWMP can
address, as shown in current RFIs and RFPs that the Company has
been invited to participate in. Working closely with leading
analysts as well as investing in marketing and brand building will
be key to the growth of the business and maintaining the Company's
technology leadership position. Actual's ability to support
multiple business leaders by quantifying the ROI of improvements to
productivity, reportable ESG efforts and employee wellbeing remains
a unique capability in the market.
The Company has progressed with its sales strategy and execution
and has achieved a first sale for the new DWMP within 6 months of
launch. There are several advanced sales engagements in the
pipeline that are expected to lead to outcomes in the coming
months. It is also noted that due to the current macroeconomic
climate SaaS sales cycles are lengthening; however, the Company has
put significant focus on communicating the productivity element of
the insights which can estimate the operational dollar recovery of
identified projects, thus adding critical value for potential
customers as cost optimisation efforts become prevalent across the
market.
Actual Experience has delivered the milestones set out a year
ago. There is a new team, a new SaaS product and a first,
contracted client using that product. In the interim, the Company
has seen the appetite for Digital Workplace Experience tools
increasing in the market and are uniquely placed to take advantage
of this trend. The new CEO has a track record of taking companies
and instilling execution and delivery and this is now the strategic
focus. There is a clean slate to build upon and the path ahead is
clear.
FINANCIAL REVIEW
Consolidated Income Statement
Total revenue for the six months to 31 March 2023 was
GBP225,271, a decrease on the prior year of 73% (H1 FY22:
GBP824,706). This decrease reflects the previously announced
cancellation of longstanding contracts that relied on our legacy
product offering, partly offset by new DWMP revenues. The Company
maintained its focus on developing a direct sales capability during
the period, while continuing to work with its partners on indirect
sales opportunities. Revenues from Channel Partners in the period
account for 100% of sales (H1 FY22: 96.4%).
A gross loss of GBP66,088 was made in the period, compared to
the gross profit of GBP354,386 in the corresponding period in 2022.
This decrease in gross margin reflects the impact of fixed support
costs during a lower revenue period and investment made in cloud
infrastructure to support new DWMP revenue opportunities.
Administrative costs amounted to GBP2,470,384, compared to
GBP3,194,804 in the six months to 31 March 2022. This significant
expense reduction reflects previously announced cost reduction
measures taken towards the end of FY22 which have materially
reduced headcount and the cost base in the current fiscal year.
The functional cost breakdown is as follows:
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2023 2022 2022
GBP GBP GBP
----------------------------------- ----------- ----------- --------------
Sales and marketing 696,662 971,671 1,302,291
Research and development 699,615 1,000,714 1,735,384
Operational support 533,992 580,263 1,317,241
Finance and administration 557,837 634,331 1,468,617
Foreign exchange (profits)/losses (17,722) 7,825 (1,017)
----------------------------------- ----------- ----------- --------------
Total 2,470,384 3,194,804 5,822,516
----------------------------------- ----------- ----------- --------------
It is anticipated that administrative costs will be slightly
higher in the in the second half of the year, due primarily to a
modest increase in sales headcount.
As disclosed in the notes to the Company's 2022 Financial
Statements, and in accordance with the requirements of IAS 38,
qualifying development expenditure is capitalised and amortised
over the estimated useful life of the developed assets. Total
expenditure on research and development in the six months to 31
March 2023, prior to IAS 38 adjustments, was GBP779,760 (H1 FY22:
GBP976,956).
A summary of the Group's results is set out below:
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2023 2022 2022
GBP GBP GBP
--------------------- ------------ ------------ --------------
Revenue 225,271 824,706 1,182,956
Gross (loss)/profit (66,088) 354,386 338,052
Operating loss (2,536,472) (2,840,418) (5,484,464)
--------------------- ------------ ------------ --------------
Loss for the
period/year (2,396,707) (2,849,540) (5,274,002)
--------------------- ------------ ------------ --------------
Balance sheet
The Group has a debt-free balance sheet. Cash and cash
equivalents increased during the period, from GBP2,871,344 at 30
September 2022 to GBP3,097,389 at 31 March 2023, in line with
expectations. This increase arose as a result of net proceeds of
GBP2,893,842 received from the October 2022 funding round, offset
by operating losses arising in the period.
Free cash flow for the period was GBP(2,660,226) (H1 FY22:
GBP(2,796,982)). This slight improvement reflects the lower
operating loss; as noted above, this primarily arose from a
reduction in operating expenses. Free cash flow is defined as net
cash flows used in operating activities, plus development of
intangible assets, plus purchase of property, plant and
equipment.
Trade and other receivables of GBP327,551 at 31 March 2023 (31
March 2022: GBP393,161) comprise trade debtors of GBP11,364,
prepayments of GBP196,483 and other debtors of GBP119,704.
Cash flow statement
The movement in cash and cash equivalents during the period
was:
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2023 2022 2022
GBP GBP GBP
--------------------------------------- ------------ ------------ --------------
Net cash used in operating activities (2,307,987) (2,375,900) (4,500,771)
Net cash used in investing
activities (322,657) (418,108) (766,871)
Net cash generated from/ (used
in) financing activities 2,893,842 (50,007) (108,863)
Effect of exchange rate fluctuations (37,153) 1,268 31,651
--------------------------------------- ------------ ------------ --------------
Movement during the period/year 226,045 (2,842,747) (5,344,854)
--------------------------------------- ------------ ------------ --------------
Going concern
As described in Note 2, Basis of Preparation, the amounts and
timing of future revenues remain uncertain. If the Group is unable
to secure an appropriate combination of new revenue contracts, cost
reductions, and/or further funding, then it may not have sufficient
resources to meet its liquidity requirements for the foreseeable
future. Accordingly, material uncertainty exists which may cast
significant doubt about its ability to continue as a going
concern.
Actual Experience plc
Consolidated income statement and statement of comprehensive
income
For the six months ended 31 March 2023
Unaudited Unaudited Audited
six months six months Year
ended ended ended
31 March 31 March 30 September
2023 2022 2022
GBP GBP GBP
------------------------------------------------------------------- ------------ ------------ --------------
Revenue 225,271 824,706 1,182,956
Cost of sales (291,359) (470,320) (844,904)
------------------------------------------------------------------- ------------ ------------ --------------
Gross (loss)/profit (66,088) 354,386 338,052
Administrative expenses (2,470,384) (3,194,804) (5,822,516)
------------------------------------------------------------------- ------------ ------------ --------------
Operating loss (2,536,472) (2,840,418) (5,484,464)
Finance income 29,618 2,974 11,408
Finance expense (13,248) (12,096) (23,391)
------------------------------------------------------------------- ------------ ------------ --------------
Finance expense - net 16,370 (9,122) (11,983)
Loss before tax (2,520,102) (2,849,540) (5,496,447)
Tax 123,395 - 222,445
------------------------------------------------------------------- ------------ ------------ --------------
Loss for the period/year (2,396,707) (2,849,540) (5,274,002)
------------------------------------------------------------------- ------------ ------------ --------------
Other comprehensive income:
Items that are or may be reclassified to profit or loss:
Foreign currency difference on translation of overseas operations (37,255) 5,521 31,945
------------------------------------------------------------------- ------------ ------------ --------------
Total comprehensive loss for the period/year (2,433,962) (2,844,019) (5,242,057)
------------------------------------------------------------------- ------------ ------------ --------------
Loss per ordinary share
Basic and diluted (1.16)p (4.97)p (9.19)p
Actual Experience plc
Consolidated statement of financial position
As at 31 March 2023
Unaudited at Unaudited Audited
31 March at at
2023 31 March 30 September
2022 2022
GBP GBP GBP
--------------------------- ------------- ------------- --------------
Non-current assets
Property, plant
and equipment 38,058 47,634 35,249
Right-of-use assets 444,225 614,918 559,022
Intangible assets 1,065,642 873,441 968,780
--------------------------- ------------- ------------- --------------
Total non-current
assets 1,547,925 1,535,993 1,563,051
Current assets
Trade and other
receivables 327,551 393,161 281,866
Income tax receivable 114,864 44,103 220,117
Cash and cash equivalents 3,097,389 5,373,451 2,871,344
--------------------------- ------------- ------------- --------------
Total current assets 3,539,804 5,810,715 3,373,327
--------------------------- ------------- ------------- --------------
Total assets 5,087,729 7,346,708 4,936,378
--------------------------- ------------- ------------- --------------
Non-current liabilities
Deferred tax (9,345) (8,826) (6,494)
Lease liabilities (442,075) (545,691) (485,622)
--------------------------- ------------- ------------- --------------
Total non-current
liabilities (451,420) (554,517) (492,116)
Current liabilities
Trade and other
payables (539,870) (700,957) (842,366)
Lease liabilities (110,543) (117,224) (119,273)
--------------------------- ------------- ------------- --------------
Total current liabilities (650,413) (818,181) (961,639)
--------------------------- ------------- ------------- --------------
Total liabilities (1,101,833) (1,372,698) (1,453,755)
Net assets 3,985,896 5,974,010 3,482,623
--------------------------- ------------- ------------- --------------
Equity
Share capital 431,552 114,681 115,370
Share premium 46,819,050 44,231,620 44,241,390
Accumulated losses (43,264,706) (38,372,291) (40,874,137)
--------------------------- ------------- ------------- --------------
Total equity 3,985,896 5,974,010 3,482,623
Actual Experience plc
Consolidated statement of changes in equity
For the six months ended 31 March 2023
Share Share Accumulated Total
capital premium losses equity
GBP GBP GBP GBP
------------------------------------------- --------- ----------- ------------- -------------
Unaudited
As at 30 September 2021 114,538 44,212,455 (35,491,057) 8,835,936
Loss for the period - - (2,849,540) (2,849,540)
Other comprehensive income for the period - - 5,521 5,521
------------------------------------------- --------- ----------- ------------- -------------
Total comprehensive loss for the period - - (2,844,019) (2,844,019)
Issue of shares 143 19,165 - 19,308
Share-based payment credit - - (37,215) (37,215)
------------------------------------------- --------- ----------- ------------- -------------
As at 31 March 2022 114,681 44,231,620 (38,372,291) 5,974,010
------------------------------------------- --------- ----------- ------------- -------------
Audited
As at 30 September 2021 114,538 44,212,455 (35,491,057) 8,835,936
Loss for the year - - (5,274,002) (5,274,002)
Other comprehensive income for the year - - 31,945 31,945
------------------------------------------- --------- ----------- ------------- -------------
Total comprehensive loss for the year - - (5,242,057) (5,242,057)
Issue of shares 832 28,935 - 29,767
Share-based payment expense - - (141,023) (141,023)
------------------------------------------- --------- ----------- ------------- -------------
At 30 September 2022 115,370 44,241,390 (40,874,137) 3,482,623
------------------------------------------- --------- ----------- ------------- -------------
Unaudited
As at 1 October 2022 115,370 44,241,390 (40,874,137) 3,482,623
Loss for the period - - (2,396,707) (2,396,707)
Other comprehensive income for the period - - (37,255) (37,255)
------------------------------------------- --------- ----------- ------------- -------------
Total comprehensive loss for the period - - (2,433,962) (2,433,962)
Issue of shares 316,182 2,577,660 - 2,893,842
Share-based payment charge - - 43,393 43,393
------------------------------------------- --------- ----------- ------------- -------------
At 31 March 2023 431,552 46,819,050 (43,264,706) 3,985,896
------------------------------------------- --------- ----------- ------------- -------------
Actual Experience plc
Consolidated statement of cash flows
for the six months ended 31 March 2023
Unaudited Unaudited Audited
Six months six months year
ended ended ended
31 March 31 March September
2023 2022 2022
GBP GBP GBP
----------------------------------------- ------------ ------------ ------------
Cash flows from operating activities
Loss before tax (2,520,102) (2,849,540) (5,496,447)
Adjustment for non-cash items:
Depreciation of property, plant
and equipment 11,325 14,193 27,260
Depreciation of right-of-use assets 49,358 55,896 111,792
Amortisation of intangible assets 241,141 431,911 689,875
Loss/(profit) on disposal of property,
plant and equipment (50) 17 3,485
Non-cash employee benefit expense
- Share-based payments 43,393 (37,215) (141,023)
Finance income (29,618) (2,974) (11,408)
Finance expense 13,248 12,096 23,391
----------------------------------------- ------------ ------------ ------------
Operating cash outflow before changes
in working capital (2,191,305) (2,375,616) (4,793,075)
Movement in trade and other receivables (45,685) 198,996 302,953
Movement in trade and other payables (302,496) (199,205) (54,673)
----------------------------------------- ------------ ------------ ------------
Cash outflow from operations (2,539,486) (2,375,825) (4,544,795)
Income tax received 231,499 (75) 44,024
Net cash flows used in operating
activities (2,307,987) (2,375,900) (4,500,771)
Cash flow from investing activities
Development of intangible assets (338,003) (408,153) (761,456)
Purchase of property, plant and
equipment (14,236) (12,929) (16,823)
Proceeds from sale of property, 50 - -
plant and equipment
Finance income 29,618 2,974 11,408
Finance expense (86) - -
----------------------------------------- ------------ ------------ ------------
Net cash outflow from investing
activities (322,657) (418,108) (766,871)
Cash flow from financing activities
Proceeds from issue of share capital,
net of costs 2,893,842 19,308 29,767
Principal element of lease payments - (57,219) (115,239)
Interest element of lease payments - (12,096) (23,391)
Inflow/outflow to Employee Benefit - -
Trust
----------------------------------------- ------------ ------------ ------------
Net cash (outflow)/inflow from
financing activities 2,893,842 (50,007) (108,863)
(Decrease)/increase in cash and
cash equivalents 263,198 (2,844,015) (5,376,505)
----------------------------------------- ------------ ------------ ------------
Effect of exchange rate fluctuations
on cash held (37,153) 1,268 31,651
----------------------------------------- ------------ ------------ ------------
Cash and cash equivalents at start
of year / period 2,871,344 8,216,198 8,216,198
----------------------------------------- ------------ ------------ ------------
Cash and cash equivalents at end
of year / period 3,097,389 5,373,451 2,871,344
----------------------------------------- ------------ ------------ ------------
Notes to the consolidated interim report
For the six months ended 31 March 2023
1 General information
Actual Experience plc (the "Company") is a public limited
company domiciled in the UK and incorporated in England and Wales
(registered number 06838738) and its registered office is Quay
House, The Ambury, Bath, BA1 1UA.
The principal activity of Actual Experience plc ("the Company")
and its subsidiary company Actual Experience Inc (together "Actual
Experience" or "the Group") is the provision of digital experience
quality analytics services and associated consultancy services.
The interim condensed consolidated financial information
approved for issue on 9 June 2023.
2 Basis of preparation
This unaudited interim condensed consolidated financial
information has been prepared under the historical cost convention,
and in accordance with International Accounting Standards and AIM
Rules for Companies. The interim condensed consolidated financial
information has been prepared on a going concern basis and is
presented in Sterling to the nearest GBP1.
The interim financial information does not include all of the
notes of the type normally included in an annual financial report.
Accordingly, this report is to be read in conjunction with the
annual report for the year ended 30 September 2022, which has been
prepared in accordance with "International Accounting Standards in
conformity with the requirements of the Companies Act 2006", and
any public announcements made by Actual Experience during the
interim reporting period. The accounting policies adopted are
consistent with those of the previous financial year and
corresponding interim reporting period.
The interim condensed consolidated financial information for the
six months ended 31 March 2023 and for the six months ended 31
March 2022 do not constitute statutory accounts as defined in
Section 434 of the Companies Act 2006 and are unaudited. The
financial information for the six months ended 31 March 2023
presents financial information for the consolidated group,
including the financial results of the Company's wholly owned US
subsidiary, Actual Experience Inc. Comparative figures in the
Interim Report for the year ending 30 September 2022 have been
taken from the Group's audited financial statements. Those accounts
have been reported on by the Company's auditors and delivered to
the Registrar of Companies. The report of the auditors was (i)
unqualified, although included an emphasis of matter in respect of
material uncertainty around going concern and (ii) did not contain
a statement under section 498(2) or (3) of the Companies Act
2006.
Going concern
As in previous years, the Group and Company have continued to
utilise their cash resources to fund losses while the sales
pipeline is being further developed. The cash balance as at 31
March 2023 was GBP3.10m. Based on the Group's latest "base case"
assessment, and in the absence of cost reductions or significant
commercial progress, the Group and Company is not forecast to
maintain positive cash reserves throughout the going concern period
and is forecast to run out of cash by December 2023. In addition,
the Directors have also prepared a severe, but plausible downside
scenario, based on significantly more pessimistic sales forecasts,
with corresponding reductions in controllable costs. In this
scenario, the Group and Company is forecast to run out of cash by
November 2023. The amounts and timing of future revenues in the
Group's budgets remain uncertain. The Group is experiencing an
encouraging level of interest in its services and it is in active
discussions with its Channel Partners and several large potential
end-customers. The discussions are well progressed and are expected
to result in additional revenue for the Group. However, at present
a substantial proportion of the forecast revenue remains
uncommitted and if the Group and Company are unable to secure an
appropriate combination of new revenue contracts, cost reductions,
and/or further funding, then the Group and Company may not have
sufficient resources to meet their liquidity requirements over
the
foreseeable future. Accordingly, a material uncertainty exists
which may cast significant doubt about the Group's and the
Company's ability to continue as going concerns. Nevertheless,
after making appropriate enquiries and considering the assumptions
and uncertainties described above, the Directors have a reasonable
expectation that the Group and Company will have adequate resources
to continue operating at least until 30 June 2024. Therefore, the
Directors continue to adopt the going concern basis in preparing
the interim condensed consolidated financial information and does
not include any of the adjustments that would be required if the
Group or Company were unable to continue as going concerns.
3 Segmental reporting
The Directors consider that there is one identifiable business
segment that is engaged in providing individual products or
services or a group of related products and services that comprise
the core business.
The information reported to the Chief Executive Officer, who is
considered to be the Chief Operating Decision Maker ("CODM"), for
the purposes of resource allocation and assessment of performance
is based wholly on the overall activities of the Group. Due to the
current size and activities of the Group there is a high degree of
centralisation of activities. The Directors therefore consider that
there is one operating, and hence one reportable, segment for the
purposes of presenting information under IFRS 8; that of "Digital
experience quality analytics services and associated consultancy
services". There are no differences between the segment results and
the condensed statement of comprehensive income. The assets and
liabilities information presented to the CODM is consistent with
the Statement of Financial Position. All of the Group's assets and
operations are located in the UK and the USA.
4 Tax
Tax on loss on ordinary activities
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2023 2022 2022
GBP GBP GBP
------------------------------------------------- ----------- ----------- --------------
Current tax:
UK Corporation tax on losses of the period/year (114,864) - (220,117)
Overseas taxes (11,382) 75 79
Deferred tax:
Origination and reversal of timing differences 2,851 (75) (2,407)
------------------------------------------------- ----------- ----------- --------------
Total tax credit (123,395) - (222,445)
------------------------------------------------- ----------- ----------- --------------
5 Loss per share
The calculation of basic and diluted loss per share for the six
months to 31 March 2023 was based upon the loss attributable to
ordinary shareholders of GBP2,396,707 (six months to 31 March 2022:
GBP2,849,540, year ended 30 September 2022: GBP5,274,002) and a
weighted average number of ordinary shares in issue of 207,122,200
(six months to 31 March 2022: 57,294,806, year ended 30 September
2022: 57,400,891), calculated as follows:
Weighted average number of ordinary shares
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2023 2022 2022
Number Number Number
----------------------------------- ------------ ----------- --------------
Issued ordinary shares at start
of period/year 57,685,018 57,269,321 57,269,321
Effect of shares issued 149,437,182 25,485 131,570
----------------------------------- ------------ ----------- --------------
Weighted average number of shares
at end of period/year 207,122,200 57,294,806 57,400,891
----------------------------------- ------------ ----------- --------------
Due to the losses incurred there is no dilutive effect from the
issue of share options.
6 Related party transactions
There were no transactions entered into with related parties
during the period. No amounts were outstanding to or from the
related parties at 31 March 2023.
During each financial period, the Company entered into numerous
transactions with its subsidiary company, which net off on
consolidation; these have not been shown above.
7. Availability of Interim Report
Electronic copies of this Interim Report will be available on
the Company's website at www.actual-experience.com.
Forward-looking statements
This announcement may include certain forward-looking
statements, beliefs or opinions, including statements with respect
to the Group's business, financial condition and results of
operations. These forward-looking statements can be identified by
the use of forward-looking terminology, including the terms
"believes", "estimates", "plans", "anticipates", "targets", "aims",
"continues", "expects", "intends", "hopes", "may", "will", "would",
"could" or "should" or, in each case, their negative or other
various or comparable terminology. These statements are made by the
Directors in good faith based on the information available to them
at the date of this announcement and reflect the Directors' beliefs
and expectations. By their nature these statements involve risk and
uncertainty because they relate to events and depend on
circumstances that may or may not occur in the future. A number of
factors could cause actual results and developments to differ
materially from those expressed or implied by the forward-looking
statements, including, without limitation, developments in the
global economy, changes in government policies, spending and
procurement methodologies, and failure in health, safety or
environmental policies. No representation or warranty is made that
any of these statements or forecasts will come to pass or that any
forecast results will be achieved. Forward-looking statements speak
only as at the date of this announcement and the Company and its
advisers expressly disclaim any obligations or undertaking to
release any update of, or revisions to, any forward-looking
statements in this announcement. No statement in the announcement
is intended to be, or intended to be construed as, a profit
forecast or to be interpreted to mean that earnings per share for
the current or future financial years will necessarily match or
exceed the historical earnings. As a result, you are cautioned not
to place any undue reliance on such forward-looking statements.
The Directors of Actual Experience plc and their functions are
listed below.
Further information for Shareholders
Company number: 06838738
Registered Quay House
office:
The Ambury
Bath
BA1 1UA
Directors: Kirsten English (Non-Executive
Chair)
Iain McCready (Chief Executive
Officer)
Steve Bennetts (Chief Financial
Officer)
Harmesh Suniara (Non-Executive
Director)
Richard Steele (Non-Executive
Director)
Barry Hoffman (Non-Executive
Director)
Company Secretary: Steve Bennetts
This information is provided by RNS, the news service of the
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END
IR DZGMVLMRGFZM
(END) Dow Jones Newswires
June 12, 2023 02:00 ET (06:00 GMT)
Actual Experience (LSE:ACT)
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