TIDMIGP

RNS Number : 0563U

Intercede Group PLC

21 November 2023

21 November 2023

INTERCEDE GROUP plc

('Intercede', the 'Company' or the 'Group')

Interim Results for the Six Months Ended 30 September 2023

Record financial performance in H1 and results for the year ending 31 March 2024 are now expected to be ahead of previous market expectations

Intercede, the leading specialist in digital identity, credential management and secure mobility, today announces its interim results for the six months ended 30 September 2023.

Financial Highlights

 
                                  H1 FY24       H1 FY23     % Change 
                                GBP million   GBP million 
                                             ------------  --------- 
 
 Revenue                            7.0           6.1         15% 
                               ------------  ------------  --------- 
 Gross profit                       6.9           5.6         23% 
-----------------------------  ------------  ------------  --------- 
 Profit before Tax                  1.1           0.6         83% 
                               ------------  ------------  --------- 
 Net Profit                         1.6           1.2         33% 
-----------------------------  ------------  ------------  --------- 
 EPS - basic                       2.7p          2.1p          29% 
                               ------------  ------------  --------- 
 EPS - diluted                     2.5p          2.0p          25% 
                               ------------  ------------  --------- 
 
 Gross Margin                       99%           92%          7% 
-----------------------------                ------------  --------- 
 Net Margin                         22%           20%         10% 
-----------------------------                ------------  --------- 
 
 Cash and cash equivalents          9.7          10.0         -3% 
 Deferred revenue                   5.4           4.4         23% 
 Total Assets                      16.8          14.0         20% 
 Total Equity                       8.7           6.9         26% 
 
 Adjusted EBITDA                    1.5           1.0         50% 
                               ------------  ------------  --------- 
 Less: 
 Amortisation of intangibles        0.1            - 
 Right of use depreciation          0.1           0.1 
 Acquisition costs                  0.1           0.3 
 Employee Share/Unit                0.1            - 
  incentive & option 
  plan charges/(credits) 
 Exceptional costs                  0.1            - 
-----------------------------  ------------  ------------  --------- 
 Operating Profit                   1.0           0.6         67% 
                               ------------  ------------  --------- 
 

Revenue highlights for the period include:

-- Record revenues for the six months ended 30 September 2023 (H1) totalling GBP7.0 million are 15% higher on a reported basis (2022: GBP6.1 million). On a constant currency basis revenue was up by 10%

-- Multiple MyID PIV licence orders including from the US Department of State (DoS) for its Identity Management System (IDMS) solution totalling $0.9 million. A large north American telecommunications company increased its licence deployment, including an upgrade

-- Several major customers have chosen to upgrade their existing MyID deployments including, but not limited to, a major global aerospace and defence manufacturer, a large north American telecommunications company, a key US government agency and US Department of Transportation

-- New 3- year licence order for MyID MFA from a global aluminium producer in the Middle East as well as key subscription renewals for MyID PSM and MyID MFA

-- Professional services continue to grow and embeds the symbiotic relationship with our clients and cadence of upgrades and new deployments. The Group will maintain the high quality service we provide by increasing investment and training as and when required

Operating Highlights

-- Increased adjusted EBITDA margin for the period of 21% (2022: 16%) as a result of continued tight cost control in conjunction with targeted project expenditure to support revenue growth and internal infrastructure upgrade

   --    The integration of Authlogics Ltd continues across the Group with the launch of Multi Factor Authentication (MFA) and Password Security Management (PSM) capabilities with MyID CMS, and to be showcased in Q4 FY24 

-- The M&A programme continues, focussed on targets that add substantial recurring revenues, compliment or is adjacent to current product portfolio and reasonably priced

-- Performance to date across the Group has been very encouraging and we continue to win prestigious new clients

-- The Group's strong balance sheet (with no debt) and good cash generation enables it to invest further both in the existing business and in M&A to accelerate its longer-term growth ambitions

Board Changes

During the period Chuck Pol retired from the Board and John Linwood was appointed as a Non-Executive Director. After the period end Dan O'Brien was also appointed as a Non-Executive Director and as Audit Chair with immediate effect, with Tina Whitley moving to the Remuneration Chair and John Linwood as Nominations Chair.

Royston Hoggarth, Chairman, said:

"The Group has continued to deliver on its stated goals of double-digit growth, continued strategic investment internally and the expansion of the MyID product portfolio.

Building on the growth in 2023, the Board is pleased to see such a focused approach to Phase 2 in the first half. As always, our colleagues in the Group have continued to maintain the momentum which we, as a Board, are grateful for.

The strong performance we achieved in the first half of 2023 has continued. The benefit of tight cost controls and a strong pipeline of future opportunities means that I am pleased to report that we now expect the Group to achieve financial performance for FY2024 ahead of previous market expectations*. Whilst the volatility in the global macroeconomic environment has increased in the last few weeks, with our strong pipeline and balance sheet we remain well positioned for the future."

* The current market forecast for the year ended 31 March 2024 is revenue of GBP13.3m and adjusted EBITDA of GBP1.0m

ENQUIRIES

Intercede Group plc Tel. +44 (0)1455 558 111

Klaas van der Leest, CEO

Nitil Patel, CFO

Cavendish Capital Markets Limited Tel. +44 (0)20 7220 0500

Simon Hicks/Fergus Sullivan, Corporate Finance

Tim Redfern/Charlotte Sutcliffe, ECM

About Intercede

Intercede is a cybersecurity software company specialising in digital identities, and its innovative solutions enable organisations to protect themselves against the number one cause of data breach: compromised user credentials.

The Intercede suite of products allows customers to choose the level of security that best fits their needs, from Secure Registration and ID Verification to Password Security Management, One-Time Passwords, FIDO and PKI. Uniquely, Intercede provides the entire set of authentication options from Passwords to PKI, supporting customers on their journey to passwordless and stronger authentication environments. In addition to developing and supporting Intercede software, the Group offers professional services and custom development capabilities as well as managing the world's largest password breach database.

For over 20 years, global customers in government, aerospace and defence, financial services, healthcare, telecommunications, cloud services and information technology have trusted Intercede solutions and expertise in protecting their mission critical data and systems at the highest level of assurance.

For more information visit: www.intercede.com

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the company's obligations under Article 17 of MAR.

The period in review

The Group entered FY24 with the clear goals of double-digit growth and to maintain the momentum from FY23, to invest internally in our colleagues, infrastructure, sales and marketing functions and to refresh the Board. H1 has shown that the Group is delivering on all these aims and will continue to do so in H2.

Market Opportunity and Growth Strategy

Following the initial turn around in Phase 1, the Group is now well placed in Phase 2 with the overarching goal of continued double-digit growth, both organic and inorganic. Good progress has been made across both strategies as outlined below.

Intercede's MyID CMS platform is the leading credential management system (CMS) and identification and verification (ID&V) solution that integrates and manages a broad range of PKI (Public Key Infrastructure) and FIDO (Faster Identity Online) technologies.

MyID CMS meets the needs of large organisations, from public sector such as government agencies or departments to private sector corporates like the Aerospace & Defence conglomerates who are prepared to invest in military grade security and cope with the more complex infrastructure required.

The Group has traditionally offered a perpetual licence model, often as requested by its client base. For the growth to be sustained over a longer period, Intercede has selectively introduced subscription licence pricing for specific opportunities. This will be extended across the entire client base in the coming months. For the foreseeable future, both a perpetual as well as a subscription pricing model will be maintained for MyID CMS.

Since the acquisition of Authlogics in October 2022, the Group has expanded and broadened MyID's functionality as it moves down the authentication pyramid and increase its addressable market. This lies at the heart of the growth plans of the Group and enables it to offer customers and prospects solutions that span the entire authentication pyramid, as shown in Diagram 1 below. MyID PSM and MyID MFA are exclusively offered through a subscription licence model.

Phase 1 was all about the business turn around (e.g. product repositioning and investment, go-to-market model, profitability and cash generation). Phase 2 now focuses on sustainable growth, addressable market, enhanced distribution, a strong balance sheet, and continuing inorganic growth following the successful maiden acquisition of Authlogics.

The ambition over the next 3-4 years is to double revenues with resilient cash generation and further entrenching Intercede as the leading digital identity specialist in the authentication space. The steps taken in the prior years have provided a solid foundation and the business KPIs underpin these ambitions.

Diagram 1 -Authentication Pyramid resulting in increased product portfolio & addressable market

M&A

Intercede continues to pursue its corporate development program and during the period has had in depth discussions with more than twenty possible acquisition targets. Many of these targets are focused on the zero trust and access management sector, and their addition would form a natural extension to our existing MyID product portfolio.

The Group has a healthy revenue pipeline in these product areas but has also turned its attention to larger targets that would help extend the business on both a geographic and sector basis.

The new EU cybersecurity NIS2 (Network and Information Security) regulation is being passed into statute in several EU countries and will form a key catalyst on cybersecurity purchasing patterns across the EU in the years ahead, particularly for the small and medium business market.

This new regulation is intended to reduce cybersecurity risk in certain areas and has aspects in common with the US NIST zero trust regulations (and associated Presidential Executive Order).

During the period, the Group was engaged in discussions with a zero trust acquisition target based in North America. Following detailed due diligence Intercede decided not to pursue the opportunity.

Financial Review - Income Statement

Revenue and operating results

The Group's revenue from continuing operations increased by 15% to GBP7.0 million (2022: GBP6.1 million) and gross profit increased by 23% to GBP6.9 million (2022: GBP5.6 million). Gross margin increased from 92% to 99% as license sales in the prior period included third party product.

The Group's operating profit was GBP1.0 million (2022: GBP0.6 million), after non-cash depreciation charge for property, plant and equipment in the period of GBP0.04 million (2022: GBP0.03 million) and a right-of-use depreciation charge of GBP0.1 million (2022: GBP0.1 million). Acquisition costs for the period were GBP0.1 million (2022: GBP0.3 million). During the period, no acquisitions were completed, and the Group continues to pursue a disciplined approach to deal pricing, due diligence and in taking the time to ensure the right strategic fit(s) to ensure continued scalability and accelerated revenue growth. Operating expenses increased by 18% to GBP6.0m (2022: GBP5.1m). Tight cost control continues to be a focus for the Group in conjunction with considered project expenditure and new hires to support revenue growth.

Staff costs continue to represent the main area of expense representing 79% of total operating costs (2022: 86%). Intercede had 99 employees and contractors as at 30 September 2023 (94 as at 31 March 2023). The average number of employees and contractors during the period was 96 (2022: 85).

The statutory profit before tax for the period was GBP1.1 million (2022: GBP0.6 million) and profit for the period was GBP1.6 million (2022: GBP1.2 million).

Taxation

The Group has a tax credit of GBP0.5 million for the period due to amounts receivable from HMRC in respect of R&D claims and US corporation tax payable (2022: tax credit of GBP0.6 million). The Group brought forward unused tax losses of GBP7.0 million (2022: GBP6.4 million). The Group assessed the deferred tax impact in the period and did not recognise any assets or liabilities.

Earnings per share

Earnings per share from continuing operations in the period was 2.7 pence for basic and 2.5 pence for diluted (2022: 2.1 pence for basic and 2.0 pence for diluted) and were based on the profit for the period of GBP1.6 million (2022: GBP1.2 million) with a basic weighted average number of shares in issue during the period of 58,231,712 (2022: 57,648,980 shares). For diluted the weighted average number was 62,429,062 (2022: 58,943,357).

Adjusted earnings per share from continuing operations in the period was 2.6 pence for basic and 2.5 pence for diluted (2022: basic and diluted of 1.7 pence) and were based on an Adjusted EBITDA for the period of GBP1.5 million (2022: GBP1.0 million).

Dividend

The Board is not proposing a dividend (2022: GBPnil).

Financial Position

Assets

Non-current assets of GBP3.4 million (2022: GBP0.4 million) mainly comprise goodwill arising on acquisition of GBP2.4 million (2022: GBPnil) and other intangible assets of GBP0.7 million (2022: GBPnil) both arising from the acquisition of Authlogics Limited ("Authlogics") in early October 2022. There is also property, plant and equipment of GBP0.2 million (2022: GBP0.1 million) and IFRS 16 right of use assets of GBP0.1 million (2022: GBP0.3 million).

Trade and other receivables of GBP3.6 million is very comparable to the prior period (2022: GBP3.6 million) reflecting the seasonality that Intercede tends to experience as US Federal customers get to the end of their fiscal year on 30 September.

Liabilities

Current liabilities increased by GBP0.3 million to GBP7.1 million (2022: GBP6.8 million) reflecting contingent consideration (created on the acquisition of Authlogics) and increased deferred revenue at the period end.

Non-current liabilities rose by GBP0.6 million to GBP1.0 million (2022: GBP0.4 million), which also reflects contingent consideration from the Authlogics acquisition and increased deferred revenue at the period end. Some larger customers prefer to contract their support and maintenance renewal for terms longer than 12 months which creates spikes in non-current liabilities.

Deferred Consideration Change

After the period end, the Group agreed with the vendors of Authlogics to extend the earnout by an additional year with the targets and thresholds remaining intact. By doing so the amount due currently for earnout year ending 30 June 2024 will now be assessed in the year ending 30 June 2025 and 2025 earnout is deferred to 2026. No deferred consideration is due now for year ending 30 June 2024.

Capital and Reserves

Total equity increased by GBP1.8 million to GBP8.7 million (2022: GBP6.9 million), reflecting the profit for the period.

Liquidity and capital resources

The Group remains in a good financial position, with gross cash balances of GBP9.7 million as at 30 September 2023 compared to GBP8.3 million held at 31 March 2023 and GBP9.9 million held at 30 September 2022. This is after a cash outflow following the acquisition of Authlogics in October 2022 for an initial consideration of GBP2.0 million and related acquisition costs expensed to the Income Statement of GBP0.2 million. The Group had no debt at the period end (2022: GBPnil).

During the period there has been a net cash inflow from operating activities of GBP1.7 million (2022: GBP2.1 million) which reflects continued good management of working capital and the receipt of the FY23 R&D claims.

Outlook

The integration of Authlogics continues and has expanded the product portfolio has been expanded, a key reason for the acquisition. Intercede is encouraged with the performance to date and with the recently announced new clients wins in the US, EMEA and APAC regions.

This strong performance means the Group now expects to achieve financial performance for FY2024 ahead of previous market expectations.

The Group's financial position and cash generation is a solid foundation for it to maintain and fund its internal investment plans and M&A opportunities to accelerate the delivery on the medium and long term aims.

By order of the Board

Klaas van der Leest Nitil Patel

Chief Executive Officer Chief Financial Officer

21 November 2023

 
Consolidated Statement of Comprehensive 
 Income- unaudited 
                                          6 months ended  6 months ended  Year ended 
                                            30 September    30 September    31 March 
                                                    2023            2022        2023 
                                                 GBP'000         GBP'000     GBP'000 
Continuing operations 
Revenue                                            6,993           6,065      12,110 
Cost of sales                                       (66)           (417)       (403) 
                                              __________      __________  __________ 
Gross profit                                       6,927           5,648      11,707 
Operating expenses                               (5,967)         (5,051)    (11,136) 
                                              __________      __________  __________ 
Operating profit                                     960             597         571 
Finance income                                       149              41         130 
Finance costs                                       (12)            (21)        (75) 
                                              __________      __________  __________ 
Profit before tax                                  1,097             617         626 
Taxation                                             453             590         685 
                                              __________      __________  __________ 
Profit for the period                              1,550           1,207       1,311 
                                              __________      __________  __________ 
Total comprehensive income attributable 
 to owners of the parent company                   1,550           1,207       1,311 
                                              __________      __________  __________ 
Earnings per share (pence) 
- basic                                             2.7p            2.1p        2.3p 
- diluted                                           2.5p            2.0p        2.2p 
                                              __________      __________  __________ 
 
 
 
Consolidated Financial Position 
 - unaudited 
                                          As at          As at       As at 
                                   30 September   30 September    31 March 
                                           2023           2022        2023 
                                        GBP'000        GBP'000     GBP'000 
Non-current assets 
Goodwill arising on acquisition           2,442              -       2,442 
Other intangible assets                     698              -         785 
Property, plant and equipment               190             98         125 
Right of use assets                         144            309         262 
                                    ___________    ___________  __________ 
                                          3,474            407       3,614 
                                    ___________    ___________  __________ 
 
Current assets 
Trade and other receivables               3,600          3,609       5,489 
Cash and cash equivalents                 9,724          9,999       8,334 
                                    ___________    ___________  __________ 
                                         13,324         13,608      13,823 
                                    ___________    ___________  __________ 
 
Total assets                             16,798         14,015      17,437 
                                    ___________    ___________  __________ 
 
Equity 
Share capital                               584            584         584 
Share premium                             5,430          5,430       5,430 
Merger reserve                            1,508          1,508       1,508 
Accumulated profit/(deficit)              1,149          (640)       (492) 
                                    ___________    ___________  __________ 
Total equity                              8,671          6,882       7,030 
                                    ___________    ___________  __________ 
 
Non-current liabilities 
Lease liabilities                           143            278         204 
Contingent consideration                    151              -         174 
Deferred revenue                            703            121         550 
                                    ___________    ___________  __________ 
                                            997            399         928 
                                    ___________    ___________  __________ 
 
Current liabilities 
Lease liabilities                           121            336         261 
Contingent consideration                    282              -         313 
Trade and other payables                  2,007          2,166       1,918 
Deferred revenue                          4,720          4,232       6,987 
                                    ___________    ___________  __________ 
                                          7,130          6,734       9,479 
                                    ___________    ___________  __________ 
 
Total liabilities                         8,127          7,133      10,407 
                                    ___________    ___________  __________ 
 
Total equity and liabilities             16,798         14,015      17,437 
                                    ___________    ___________  __________ 
 
 
Consolidated Statement 
 of Changes in Equity- unaudited 
                                                                   Merger        Accumulated    Total 
                                   Share capital  Share premium   reserve   (deficit)/profit   equity 
                                         GBP'000        GBP'000   GBP'000            GBP'000  GBP'000 
 
At 1 April 2023                              584          5,430     1,508              (492)    7,030 
 
Purchase of own shares                                                                  (27)     (27) 
Employee share option plan 
 charge                                        -              -         -                 95       95 
Employee share incentive 
 plan charge                                   -              -         -                 23       23 
Profit for the period and 
 total comprehensive income                    -              -         -              1,550    1,550 
                                        ________       ________  ________         __________  _______ 
At 30 September 2023                         584          5,430     1,508              1,149    8,671 
                                        ________       ________  ________         __________  _______ 
 
At 1 April 2022                              577          5,268     1,508            (1,842)    5,511 
 
Purchase of own shares                                                                  (27)     (27) 
Issue of new shares                            7            162         -                  -      169 
Employee share incentive 
 plan charge                                   -              -         -                 22       22 
Profit for the period and 
 total comprehensive income                    -              -         -              1,207    1,207 
                                        ________       ________  ________         __________  _______ 
At 30 September 2022                         584          5,430     1,508              (640)   6,882 
                                        ________       ________  ________         __________  _______ 
 
At 1 April 2022                              577          5,268     1,508            (1,842)    5,511 
 
Purchase of own shares                         -              -         -               (54)     (54) 
Issue of new shares                            7             62         -                  -      169 
Employee share option plan 
 charge                                        -              -         -                 50       50 
Employee share incentive 
 plan charge                                   -              -         -                 43       43 
Profit for the period and 
 total comprehensive income                    -              -         -              1,311    1,311 
                                        ________       ________  ________         __________  _______ 
At 31 March 2023                             584          5,430     1,508              (492)    7,030 
                                        ________       ________  ________         __________  _______ 
 
 
Consolidated Cash Flow Statement- 
 unaudited 
                                         6 months ended  6 months ended  Year ended 
                                           30 September    30 September    31 March 
                                                   2023            2022        2023 
                                                GBP'000         GBP'000     GBP'000 
Cash flows from operating activities 
Profit for the period                             1,550           1,207       1,311 
Taxation                                          (453)           (590)       (685) 
Finance income                                    (149)            (41)       (130) 
Finance costs                                        12              21          75 
Depreciation of property, plant & 
 equipment                                           38              31          66 
Depreciation of right of use assets                 118             122         246 
Amortisation                                         87               -          83 
Exchange (profits) / losses on foreign 
 currency lease liabilities                         (1)              59          40 
Employee share option plan charge                    95               -          50 
Employee share incentive plan charge                 23              22          43 
Employee unit incentive plan charge                 (5)            (60)        (51) 
Employee unit incentive plan payment                  -               -         (3) 
Decrease / (increase) in trade and 
 other receivables                                1,882           1,439       (831) 
Increase in trade and other payables                 41             762         334 
(Decrease) / increase in deferred 
 revenue                                        (2,114)           (849)       1,668 
                                           ____________    ____________  __________ 
Cash generated from operations                    1,124           2,123       2,216 
Finance income                                      145              30         116 
Finance costs on leases                            (18)            (21)        (44) 
Tax received / (paid)                               453            (14)         574 
                                           ____________    ____________  __________ 
Net cash generated from operating 
 activities                                       1,704           2,118       2,862 
                                           ____________    ____________  __________ 
Investing activities 
Purchases of property, plant and 
 equipment                                        (102)            (12)        (70) 
Purchase of business (net of cash 
 acquired)                                            -               -     (2,079) 
                                           ____________    ____________  __________ 
Cash used in from investing activities            (102)            (12)     (2,079) 
                                           ____________    ____________  __________ 
Financing activities 
Purchase of own shares                             (27)            (27)        (54) 
Proceeds from issue of ordinary share 
 capital                                              -             169         169 
Principal elements of lease payments              (199)           (201)       (409) 
                                           ____________    ____________  __________ 
Cash used in financing activities                 (226)            (59)       (294) 
                                           ____________    ____________  __________ 
Net increase / (decrease) in cash 
 and cash equivalents                             1,376           2,047         489 
Cash and cash equivalents at the 
 beginning of the period                          8,334           7,787       7,787 
Exchange gain / (loss) on cash and 
 cash equivalents                                    14             165          58 
                                           ____________    ____________  __________ 
Cash and cash equivalents at the 
 end of the period                                9,724           9,999       8,334 
                                           ____________    ____________  __________ 
 

Notes to the Consolidated Accounts

For the period ended 30 September 2023

   1    Preparation of the interim financial statements 

These interim financial statements have been prepared in accordance with International Accounting Standards in conformity with the requirements of the Companies Act 2006 and with those parts of the Companies Act 2006 applicable to companies reporting under International Financial Reporting Standards (IFRS).

The basis of preparation and accounting policies used in preparation of these interim financial statements have been prepared in accordance with the same accounting policies set out in the Group's Annual Report for the year ended 31 March 2023, which provides full details of significant judgements and estimates used in the application of the Group's accounting policies. There have been no significant changes to these judgements and estimates during the period which included an assessment that the going concern basis continues to be appropriate in preparing the interim financial statements.

These interim financial statements have not been audited and do not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 March 2023 have been delivered to the Registrar of Companies. The Auditors' Report on those accounts was unqualified and did not contain any statement under Section 498 (2) or (3) of the Companies Act 2006.

This Interim Report is available on the website (www.intercede.com) and at the registered office: Intercede Group plc, Lutterworth Hall, St Mary's Road, Lutterworth, Leicestershire, LE17 4PS.

   2    Revenue 

All of the Group's revenue, operating profits and net assets originate from operations in the UK. The Directors consider that the activities of the Group constitute a single business segment.

The split of revenue by geographical destination of the end customer can be analysed as follows:

 
                 6 months ended  6 months ended  Year ended 
                   30 September    30 September    31 March 
                           2023            2022        2023 
                        GBP'000         GBP'000     GBP'000 
 
UK                          181              95         539 
Rest of Europe              601             414         906 
Americas                  5,752           5,221       9,879 
Rest of World               459             335         786 
                    ___________     ___________  __________ 
                          6,993           6,065      12,110 
                    ___________    ____________    __________ 
 
   3    Taxation 

Taxation represents the net effect of amounts receivable from HMRC in respect of R&D claims and US corporation tax payable.

   4    Earnings per share 

The calculations of earnings per ordinary share are based on the profit for the period and the weighted average number of ordinary shares in issue during each period.

 
                                    6 months ended  6 months ended  Year ended 
                                      30 September    30 September    31 March 
                                              2023            2022        2023 
                                           GBP'000         GBP'000     GBP'000 
 
Profit for the period                        1,550           1,207       1,311 
                                       ___________     ___________  __________ 
 
                                            Number          Number      Number 
Weighted average number of shares 
 - basic                                58,231,712      57,648,980  57,939,548 
- diluted                               62,429,062      58,943,357  60,595,485 
                                       ___________     ___________  __________ 
 
                                             Pence           Pence       Pence 
Earnings per share 
 - basic                                      2.7p            2.1p        2.3p 
- diluted                                     2.5p            2.0p        2.2p 
                                       ___________     ___________  __________ 
 

The weighted average number of shares used in the calculation of basic and diluted earnings per share for each period were calculated as follows:

 
                                    6 months ended  6 months ended  Year ended 
                                      30 September    30 September    31 March 
                                              2023            2022        2023 
                                            Number          Number      Number 
 
Issued ordinary shares at start 
 of period                              58,363,357      57,743,357  57,743,357 
Effect of treasury shares                (131,645)       (131,645)   (131,645) 
Effect of issue of ordinary 
 share capital                                   -          37,268     327,836 
                                       ___________     ___________  __________ 
Weighted average number of shares 
 - basic                                58,231,712      57,648,980  57,939,548 
                                       ___________     ___________  __________ 
 
  Add back effect of treasury 
  shares                                   131,645         131,645     131,645 
Effect of share options in issue         4,065,705       1,162,732   2,524,292 
                                       ___________     ___________  __________ 
Weighted average number of shares 
 - diluted                              62,429,062      58,943,357  60,595,485 
                                       ___________     ___________  __________ 
 
   5    Dividend 

The Directors do not recommend the payment of a dividend.

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November 21, 2023 02:00 ET (07:00 GMT)

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