TIDMINSG
RNS Number : 3744X
Insig AI Plc
20 December 2023
Insig AI plc / EPIC: INSG / Market: AIM
20 December 2023
INSIG AI PLC
("INSG" or the "Company")
Unaudited Interim Results for the Six Months ended 30 September
2023
Insig AI plc (AIM:INSG), the data science and machine learning
solutions company serving the asset management industry, is pleased
to announce its unaudited interim results for the six months ended
30 September 2023 and to provide an update on the Company's
progress post the half year end.
Highlights
-- Adjusting for interest and depreciation, operating loss
reduced by 80 per cent. to GBP0.2 million.
-- Cash and cash equivalents at period end of GBP0.7 million.
-- November 2023 disposal of non-core sports business at more
than 25 times historic pre-tax profits realised net cash of GBP0.3
million.
-- Financial Conduct Authority describes Insig AI as a key contributor to its TechSprint
For further information, please visit www.insg.ai or
contact:
Insig AI plc
Richard Bernstein, Richard.bernstein@insg.ai
Chairman
Colm McVeigh, CEO Colm.mcveigh@insg.ai
Zeus (Nominated Adviser David Foreman / James
& Broker) Hornigold / Danny Philips +44 (0) 203 829 5000
Chairman's statement
I am pleased to update you on developments at Insig AI plc. The
six months to 30 September 2023 was a period where nearly all our
resources were deployed in two areas. Firstly, following our data
and technology collaboration agreement, working with the Financial
Conduct Authority ("FCA"). Secondly, devising and delivering a new
method of assessing the level of transparency of disclosure within
corporate reporting. Streamlining disclosure and making information
easily available is urgently required. Until regulation provides
decisive leadership and clear rules, as is the case with accounting
standards, many corporates are providing excessive non-financial
information, which can confuse market participants. We believe that
once there is a standard regulatory framework for the disclosure of
non-financial information, we will be ideally positioned to
capitalise. In the meantime, our sales efforts are focussed on
corporates who recognise the need to improve transparency and
disclosure.
Data and technology collaboration with the Financial Conduct
Authority ("FCA")
In April 2023, we announced that we would be providing the data
and software platforms to the FCA's 2023 TechSprint, known as the
Global Financial Innovation Network's (GFIN) Greenwashing
TechSprint. The GFIN Greenwashing TechSprint brought together 13
international regulators.
The goal of the project was to develop a tool or solution that
can help regulators tackle or mitigate the risks of greenwashing in
financial services across the globe. The project focused on how
technology, including AI and Machine Learning, can enable
regulators and supervisors to verify that ESG-related product
claims to retail consumers are accurate and complete and how
technology can help monitor, collate, and identify examples of
greenwashing from financial services firms' websites, social media
platforms, and other documentation or data which can also be shared
across jurisdictions.
Insig AI provided our data and technology platform for
onboarding of partners and participants of the GFIN Greenwashing
TechSprint. The core data set comprised our database of pdf and
machine-readable corporate financial and ESG documents with entity
mapping and sentence-level classification against 15 ESG
issues.
Participants gained access to Insig AI's technology via the ESG
Research Tool app, which combines machine learning, Natural
Language Processing and Elastic search capability for efficient
document interrogation and comparison across the database of
reports. We also facilitated the collection, tagging and addition
of new corporate documents into the database.
At the end of September 2023, the FCA publicly referred to Insig
AI as a key contributor. I am now delighted to report that the FCA
has asked us to become a permanent partner within its "digital
sandbox."
Launch of The Transparency and Disclosure Index ("TDI")
At the end of October 2023, we announced the launch of The
Transparency and Disclosure Index ("TDI"). Using evidence-based
analysis of more than 200 million machine readable sentences from
our corporate disclosure document repository, the TDI demonstrates
what stakeholders and market participants require: how well a
company is disclosing non-financial information and how transparent
it is. Scoring highlights gaps that are actionable for each company
to remedy. The TDI was developed following discussions with FTSE
100 and FTSE 250 companies at CEO, CFO and Head of Investor
Relations level.
Since 2015, the number of corporate reports produced by FTSE 100
constituents has mushroomed by 626% from an average of 2.5 reports
per company to 17.5. In 2022, BT Group produced 47 separate reports
and Tesco published 46 reports. It would take an analyst 18 months
to collect and read the disclosures from the FTSE 100
constituents.
Machine learning and AI can digest this array of detail and
distil down to what corporate reporting is supposed to be about:
informing the reader, thereby allowing better decision making and
actions.
The TDI framework is based on best practice principles behind
the convergence of reporting standards. Reports are compared to
best practice, benchmarking against peer groups, measuring website
clarity and accessibility of documents. It highlights where the
range of sustainability documents is considered excessive and flags
where companies may be over-using certain keywords identified as
being commonly used in greenwashing without evidence and are
possibly misleading.
The TDI's objective is to simplify corporate reporting to what
matters: easy access and direct sight of the core issues of
corporate disclosure. The TDI gives corporates the evidence to
limit disclosure to what is important and examples of best
practice.
The TDI focuses on the standard of corporate disclosure and
transparency, not a company's ESG credentials. Within the FTSE 100,
the highest ranking 20 companies include Royal Dutch Shell,
International Consolidates Airlines, Rio Tinto, Anglo American, BAE
Systems and BAT Industries. Lloyds Banking Group and Rightmove are
amongst the lowest scoring constituents.
A demo of the Transparency and Disclosure Index can be accessed
here: https://tdi-demo.insg.ai/
In my last Chairman's Statement, I commented that our view was
that the huge shift in asset allocation to government bonds, where
the risk-free rate returned to levels not seen for more than 20
years, had resulted in many purchasing and investment decisions
being deferred. Against this backdrop, it is unsurprising that we
experienced a decline in our first half revenues, with machine
learning and data services revenue declining by GBP0.1 million. On
a consolidated basis, first half revenue fell by 11 per cent.
In August, I stated that it was our mission to endure this
transitory period. At the end of last month, the FCA published its
Sustainability Disclosure Requirements. Together with its intention
to bring into force anti-greenwashing rules by the end of May 2024,
guidance is clear on how firms are to measure and provide evidence
in line with fund labels. Insig AI is therefore positively
positioned, as evidence-based data at scale will be an essential
component for firms.
Insig AI, using its machine learning expertise, has the
capability to source, analyse and categorise vast quantities of
data to accelerate and enhance human decision making. With a
centralised library of transparent, tagged and machine-readable
data of over 6 ,000 companies, we believe that we possess an
unrivalled database and navigational tool for both corporations and
market participants, encompassing over 200 million machine readable
sentences.
Financial performance
For the six months ending 30 September 2023, we are reporting a
total comprehensive loss from all activities of GBP1.8 million,
which includes depreciation and amortisation of GBP1.4 million and
deferred tax of GBP0.1 million. Adjusting for depreciation and
amortisation, the operating loss reduced by 80% to GBP0.2 million.
The loss for the comparative period was GBP1.2 million.
Cash at bank as at 30 September 2023 was GBP0.7 million.
Following the period end, in November 2023, we announced the
disposal of the legacy Sports in Schools business. This realised
net proceeds of GBP0.3 million.
In August, we forecast that the Insig AI business would continue
to achieve increases in revenue in the current and following
financial year and for operational profitability in the current
year and beyond. As we approach the final quarter of our financial
year, taking account of proposals with prospects, our pipeline and
the status of our strategic discussions with potential partners, we
remain of that view.
Successful equity funding and working capital
In April 2023, the Company announced that it had completed an
equity subscription raising GBP0.9 million at 17p per share, being
the closing price on 20 April 2023. I subscribed for GBP0.15
million.
The subscribed for shares were issued from shares held in
treasury, being shares gifted to the Company in December 2022 by
Insight Capital founders and directors of the Company, Steve
Cracknell and Warren Pearson, Chief Product Officer and Chief
Technology Officer respectively. As a result, effectively, existing
shareholders suffered no equity dilution.
The board continues to closely monitor the level of working
capital. Based on our expectations for new business wins in the
coming quarter and beyond, we believe that the business has
sufficient working capital. However, the board would consider an
injection of equity should a potential partner wish to take a
strategic equity stake to fast track growth. The board's view is
that should this occur, pricing should reflect the value of the
Company's repository of corporate disclosures and its machine
learning and data science expertise.
Disposal of Sports in Schools Limited and The Elms Group
Limited
Post period end, on 14 November 2023, the Company's 85.87% owned
subsidiary, Pantheon Leisure plc ("Pantheon"), entered into a sale
agreement for Sports in Schools and Elms Group with Haygreen
Limited for a total cash consideration payable of GBP0.3 million
(the "Cash Consideration").
Sports in Schools generated a profit before tax of approximately
GBP31,000 during the year ended 31 March 2023 whilst Elms Group
generated a loss before tax of approximately GBP12,000 during the
same period.
As previously announced on 12 September 2022, I entered into a
convertible loan agreement with the Company for a total
consideration of GBP0.75 million, secured against the ordinary
shares of Westside Sports Limited owned by the Company, which had
interests in Ultimate Player Limited, Pantheon Leisure plc, Sports
in Schools Limited and The Elms Group Limited. Upon completion of
the Disposal, I agreed to revise the terms of the Convertible Loan
including releasing the security held over West Sports Limited.
Convertible loans
In May 2022, I provided the Company with an unsecured
convertible loan facility of GBP1.0 million. In June 2022, the
Company announced that it had also agreed a GBP0.5 million
convertible loan, on the same terms as my own facility, with David
Kyte, a long-term shareholder of the Company. These loan facilities
were fully utilised and were due for repayment on 31 December 2022.
In that month, both David Kyte and myself agreed to extend these
loans by 12 months and these were due for repayment on 31 December
2023.
I'm pleased to report that both David Kyte and I have agreed to
extend the duration of the loans to 30 June 2024. For my loan,
interest will continue to be charged at 8 per cent. per annum and
the conversion price will remain at 20p per share. For David Kyte's
loan, the company has agreed to increase the coupon on the loan
from 8 per cent. to 12 per cent, to reflect the significant
increase in interest rates and to amend the conversion price from
18p per share to 15p per share.
In September 2022, I provided a further convertible loan
facility of up to GBP0.75 million. This facility was fully
utilised. This loan was secured against the share capital held by
the Company in Westside Sports Limited, which had interests in
Ultimate Player Limited, Pantheon Leisure plc, Sport in Schools
Limited and the Elms Group Limited. As stated above, in November
2023, I agreed to release security over this loan and I converted
the loan plus accumulated interest into 3,925,380 ordinary shares
at 20p per share.
AB CarVal partnership
In February 2022, the Company announced a landmark agreement
with AB CarVal to develop and launch a new line of high yield
("HY") and investment grade ("IG") ESG scoring tools to be used by
AB CarVal to optimise HY and/or IG portfolios based on ESG
considerations. As previously stated, our share of fees is based on
AB CarVal's assets under management ("AUM") raised in connection
with these HY and/or IG focused investment pools and we continue to
anticipate that as AB CarVal secures mandates, our fees will
increase commensurably and continue for several years. In July
2022, AB CarVal was acquired by Alliance Bernstein.
In April 2023, we reported that over the last year, we worked
closely with AB CarVal on refining the ESG scoring tools and that
we believe that these tools. We continue to expect a slow and
gradual ramp up of sustainable revenues from this partnership.
Whilst the recent uncertain ESG landscape in the US described above
has inevitably made the ESG fundraising environment far slower and
more challenging, we continue to remain of the view that AB CarVal
has a market leading product, which in time, can garner support
with growing traction.
Prospects
Last month, we announced that we had entered a commitment to
provide a scalable and automated solution to a US and European
based provider of Collateralised Loan Obligations and structured
credit products with assets under management of more than GBP3
billion.
Although the commitment of work was for an initial sum of
GBP60,000, it included the opportunity for further follow-on
projects. Insig AI is providing a central database allowing for the
development and application of machine learning methods. The
commitment of work also involves integrating our data analytics
software into the launch of a potential new fund, which could
provide longer term recurring revenue streams for the Company. I'm
pleased to report that this client relationship is developing well.
Furthermore, in recent weeks, we have entered discussions with a
European based investment house with a view to securing a
significant mandate to deliver a host of data science
solutions.
Since the period end, the positive feedback from our newly
launched Transparency and Disclosure Index ("TDI") is translating
into a much broader list of prospects. In the coming quarter, our
mission is to convert several of these positive trial results and
current client proposals into substantial revenues. Our ability to
meet or beat current year revenue and profitability estimates will
depend on this success.
We have previously commented on the current bear market for
asset managers and that many have characterised this as being the
harshest investment climate for a generation. Despite this
backdrop, I am determined to do whatever it takes to ensure that
this business now fully monetises its immensely valuable repository
of corporate disclosures and machine learning and data science
expertise. I will take whatever action is necessary to accelerate
this process.
Richard Bernstein
Chairman
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
6 months 6 months
to 30 September to 30 September
2023 Unaudited 2022 Unaudited
Notes GBP GBP
------------------------------------------------ ------ ----------------- -----------------
Continuing operations
Revenue 882,478 953,563
Cost of sales (384,916) (359,411)
------------------------------------------------ ------ ----------------- -----------------
Gross profit 497,562 594,152
Administration expenses (2,175,056) (3,224,761)
Other gains/(losses) 59,470 47,533
Other income 877 201
Operating loss (1,617,147) (2,582,875)
------------------------------------------------ ------ ----------------- -----------------
Finance income 147 -
Finance costs (64,841) (15,483)
------------------------------------------------ ------ ----------------- -----------------
Loss before income tax (1,681,841) (2,598,358)
Deferred tax (129,255) (208,738)
Loss for the period after income tax (1,811,096) (2,807,096)
------------------------------------------------ ------ ----------------- -----------------
Total comprehensive loss attributable
to owners of the Parent (1,810,660) (2,810,503)
------------------------------------------------ ------ ----------------- -----------------
Total comprehensive profit/(loss) attributable
to non-controlling interests (436) 3,407
------------------------------------------------ ------ ----------------- -----------------
Basic and diluted 5 (1.74)p (2.660)p
------------------------------------------------ ------ ----------------- -----------------
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at As at As at
30 September 31 March 30 September
2023 Unaudited 2023 Audited 2022 Unaudited
Notes GBP GBP GBP
------------------------------------- -------- ---------------- -------------- ----------------
Non-Current Assets
Property, plant and equipment 14,759 37,648 66,483
Right of Use Assets 23,127 28,266 33,406
Intangible assets 7 19,464,501 20,309,278 37,693,489
19,502,387 20,375,192 37,793,378
------------------------------------- -------- ---------------- -------------- ----------------
Current Assets
Trade and other receivables 161,812 719,840 226,774
Cash and cash equivalents 659,670 280,584 150,084
------------------------------------- -------- ---------------- -------------- ----------------
821,482 1,000,424 376,858
------------------------------------- -------- ---------------- -------------- ----------------
Total Assets 20,323,869 21,375,616 38,170,236
------------------------------------- -------- ---------------- -------------- ----------------
Non-Current Liabilities
Lease liabilities 11,971 16,868 24,930
Deferred tax liabilities 2,715,350 2,586,096 4,368,826
------------------------------------- -------- ---------------- -------------- ----------------
2,727,321 2,602,964 4,393,756
------------------------------------- -------- ---------------- -------------- ----------------
Current Liabilities
Trade and other payables 611,515 932,927 984,546
Lease liabilities 10,386 10,386 8,000
Convertible loans 8 2,318,173 2,261,769 1,514,517
2,940,074 3,205,082 2,507,063
------------------------------------- -------- ---------------- -------------- ----------------
Total Liabilities 5,667,395 5,808,046 6,900,819
------------------------------------- -------- ---------------- -------------- ----------------
Net Assets 14,656,474 15,567,570 31,269,417
------------------------------------- -------- ---------------- -------------- ----------------
Capital and Reserves Attributable
to
Equity Holders of the Company
Share capital 3,109,804 3,109,804 3,109,804
Share premium 39,977,403 39,077,403 39,077,403
Other reserves 377,381 377,381 325,583
Share based payments reserve 18,845 18,845 -
Retained losses (28,775,506) (26,964,846) (11,194,113)
------------------------------------- -------- ---------------- -------------- ----------------
Equity attributable to shareholders
of the parent 14,707,927 15,618,587 31,318,677
------------------------------------- -------- ---------------- -------------- ----------------
Non-controlling interests (51,453) (51,017) (49,260)
------------------------------------- -------- ---------------- -------------- ----------------
Total Equity 14,656,474 15,567,570 31,269,417
------------------------------------- -------- ---------------- -------------- ----------------
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS'
EQUITY
Share
based Non
Share Share payment Other Retained Total Controlling Total
capital premium reserve reserves losses equity Interest equity
Note GBP GBP GBP GBP GBP GBP GBP GBP
---------- ------------ --------------
Balance as at 1 April
2022 3,109,804 39,077,403 17,240 325,583 (8,400,850) 34,129,180 (52,667) 34,076,513
------------------------------ ---------- ----------- -------- ------------ ------------- ------------ ------------ --------------
Loss for the period - - - - (2,810,503) (2,810,503) 3,407 (2,807,096)
Total comprehensive
loss for the period - - - - (2,810,503) (2,810,503) 3,407 (2,807,096)
------------------------------ ---------- ----------- -------- ------------ ------------- ------------ ------------ --------------
Balance as at 30 September
2022 3,109,804 39,077,403 17,240 325,583 (11,211,353) 31,318,677 (49,260) 31,269,417
Balance as at 1 April
2023 3,109,804 39,077,403 18,845 377,381 (26,964,846) 15,618,587 (51,017) 15,567,570
------------------------------ ---------- ----------- -------- ------------ ------------- ------------ ------------ --------------
Loss for the period - - - - (1,810,660) (1,810,660) (436) (1,811,096)
------------------------------ ---------- ----------- -------- ------------ ------------- ------------ ------------ --------------
Total comprehensive
loss for the period - - - - (1,810,660) (1,810,660) (436) (1,811,096)
------------------------------ ---------- ----------- -------- ------------ ------------- ------------ ------------ --------------
Sale of treasury shares - 900,000 - - - 900,000 - 900,000
------------------------------ ---------- ----------- -------- ------------ ------------- ------------ ------------ --------------
Total transactions
with owners, recognised
in equity - 900,000 - - - 900,000 - 900,000
------------------------------ ---------- ----------- -------- ------------ ------------- ------------ ------------ --------------
Balance as at 30 September
2023 3,109,804 39,977,403 18,845 377,381 (28,775,506) 14,707,927 (51,453) 14,656,474
------------------------------ ---------- ----------- -------- ------------ ------------- ------------ ------------ --------------
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
6 months 6 months
to 30 September to 30 September
2023 2022 Unaudited
Notes Unaudited GBP
GBP
------------------------------------------- -------- ----------------- -----------------
Cash flows from operating activities
Loss before taxation (1,810,660) (2,810,503)
Adjustments for:
Depreciation and amortisation 1,382,456 1,371,290
Increase in deferred tax provision 129,255 198,738
Minority interest (436) 3,407
Disposal of Property Pant and Equipment 4,803 -
Finance expense (4,898) 15,458
Cash received for R&D refund 542,000 -
Increase/(decrease) in trade and other
receivables 19,146 7,545
Increase/(decrease) in trade and other
payables (265,008) 239,714
Net cash used in operations (3,342) (974,351)
-------------------------------------------- -------- ----------------- -----------------
Cash flows from investing activities
Purchase of property, plant and equipment (595) (263)
Disposal of Property Pant and Equipment 3,160 -
Development expenditure 7 (517,018) (834,952)
Net cash used in investing activities (514,453) (835,215)
-------------------------------------------- -------- ----------------- -----------------
Cash flows from financing activities
Funds from sale of treasury shares 900,000 -
Repayment of leasing liabilities and
bank borrowings (3,119) (13,740)
Proceeds from issue of convertible
loan note - 1,500,000
-------------------------------------------- -------- ----------------- -----------------
Net cash generated from financing
activities 896,881 1,486,260
-------------------------------------------- -------- ----------------- -----------------
Net decrease in cash and cash equivalents 379,086 (323,306)
Cash and cash equivalents at beginning
of period 280,584 473,390
Cash and cash equivalents at end
of period 659,670 150,084
-------------------------------------------- -------- ----------------- -----------------
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. General Information
Insig AI plc is a data science and machine learning company
listed on the AIM Market of the London Stock Exchange.
The Company is domiciled in the United Kingdom and incorporated
and registered in England and Wales, with registration number
03882621. The Company's registered office is 6 Heddon Street,
London, W1B 4BT.
2. Basis of Preparation
The condensed consolidated interim financial statements have
been prepared in accordance with the requirements of the AIM Rules
for Companies. As permitted, the Company has chosen not to adopt
IAS 34 "Interim Financial Statements" in preparing this interim
financial information. The condensed interim financial statements
should be read in conjunction with the annual financial statements
for the year ended 31 March 2023, which have been prepared in
accordance with UK adopted international accounting standards.
The interim financial information set out above does not
constitute statutory accounts within the meaning of the Companies
Act 2006. It has been prepared on a going concern basis in
accordance with the recognition and measurement criteria of UK
adopted international accounting standards.
Statutory financial statements for the year ended 31 March 2023
were approved by the Board of Directors on 13 August 2023 and
delivered to the Registrar of Companies. The report of the auditors
on those financial statements was unqualified with a material
uncertainty in relation to the Company's ability to continue as a
going concern. The condensed interim financial statements are
unaudited and have not been reviewed by the Company's auditor.
Going concern
These financial statements have been prepared on the going
concern basis. Given the Group's current cash position and its
demonstrated ability to raise capital, the Directors have a
reasonable expectation that the Group has adequate resources to
continue in operational existence for the foreseeable future. Thus,
they continue to adopt the going concern basis of accounting
preparing the condensed interim financial statements for the period
ended 30 September 2023.
Notwithstanding the above, a material uncertainty exists that
may cast significant doubt on the Group's ability to continue as a
going concern and, therefore, that the Group may be unable to
realise their assets or settle their liabilities in the ordinary
course of business. As a result of their review, and despite the
aforementioned material uncertainty, the Directors have confidence
in the Groups forecasts and have a reasonable expectation that the
Group will continue in operational existence for the going concern
assessment period and have therefore used the going concern basis
in preparing these consolidated financial statements.
The factors that were extant at 31 March 2023 are still relevant
to this report and as such reference should be made to the going
concern note and disclosures in the 2023 Annual Report and
Financial Statements ("2023 Annual Report").
Risks and uncertainties
The Board continuously assesses and monitors the key risks of
the business. The key risks that could affect the Company's medium
term performance and the factors that mitigate those risks have not
substantially changed from those set out in the Company's 2023
Annual Report and Financial Statements, a copy of which is
available on the Company's website: www.insgai.com . The key
financial risks are liquidity risk, credit risk, interest rate risk
and fair value estimation.
Critical accounting estimates
The preparation of condensed interim financial statements
requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities at the end of the
reporting period. Significant items subject to such estimates are
set out in Note 2 of the Company's 2023 Annual Report and Financial
Statements. The nature and amounts of such estimates have not
changed significantly during the interim period.
3. Accounting Policies
Except as described below, the same accounting policies,
presentation and methods of computation have been followed in these
condensed interim financial statements as were applied in the
preparation of the Company's annual financial statements for the
period ended 31 March 2023.
3.1 Changes in accounting policy and disclosures
(a) New and amended standards adopted by the Group and
Company
The International Accounting Standards Board (IASB) issued
various amendments and revisions to International Financial
Reporting Standards and IFRIC interpretations. The amendments and
revisions were applicable for the period ended 30 September 2023
but did not result in any material changes to the financial
statements of the Group or Company.
Of the other IFRS and IFRIC amendments, none are expected to
have a material effect on future Group or Company Financial
Statements.
(b) New standards, amendments and Interpretations in issue but
not yet effective or not yet endorsed and not early adopted
The standards and interpretations that are issued, but not yet
effective, up to the date of issuance of the condensed interim
financial statements are listed below. The Group intends to adopt
these standards, if applicable when they become effective.
Standard Impact on initial application Effective date
IFRS 17 (Amendments) Insurance contracts 1 January 2023
--------------------------------- --------------
IAS 1 (Amendments) Disclosure of Accounting Policies 1 January 2023
and IFRS Practice
Statement 2
--------------------------------- --------------
IAS 8 (Amendments) Definition of Accounting Estimate 1 January 2023
--------------------------------- --------------
IAS 12 Income Deferred Tax Related to Assets 1 January 2023
Taxes (Amendments) and Liabilities Arising from a
Single Transaction
--------------------------------- --------------
IAS 1 (Amendments) Classification of liabilities 1 January 2024
as current or non-current
--------------------------------- --------------
IFRS 16 (Amendments) Lease Liability in a Sale and 1 January 2024
Leaseback
--------------------------------- --------------
None are expected to have a material effect on the Group or
Company Financial Statements.
4. Dividends
No dividend has been declared or paid by the Company during the
six months ended 30 September 2023 (six months ended 30 September
2022: GBPnil).
5. Loss per Share
The calculation of earnings per share is based on a retained
loss of GBP1,810,660 for the six months ended 30 September 2023 (
six months ended 30 September 2022: GBP2,810,503) and the weighted
average number of shares in issue in the period ended 30 September
2023 of 103,566,056 (six months ended 30 September 2022:
105,675,645 ).
No diluted earnings per share is presented for the six months
ended 30 September 2023 or six months ended 30 September 2022 as
the effect on the exercise of share options would be to decrease
the loss per share.
6. Business segment analysis
6 months to 30 September 2023 Unaudited
Machine learning Sport in Schools Total
and Data services
GBP GBP GBP
Revenue 182,797 699,681 882,478
Costs of sales - (384,916) (384,916)
Administrative expenses (1,874,622) (300,434) (2,175,056)
Other gains/(losses) 59,677 (207) 59,470
Other income 490 387 877
Finance Income 147 - 147
Finance costs (64,654) (187) (64,841)
Profit/(Loss) before
tax per reportable segment (1,696,165) 14,324 (1,681,841)
----------------------------- ------------------- ----------------- ------------
6 months to 30 September 2022 Unaudited
Machine learning Sport in Schools Total
and Data services
GBP GBP GBP
Revenue 289,524 664,039 953,563
Costs of sales (2,545) (356,866) (359,411)
Administrative expenses (2,945,323) (279,438) (3,224,761)
Other gains/(losses) 58,570 (11,037) 47,533
Other income - 201 201
Finance costs (15,483) - (15,483)
Profit/(Loss) before
tax per reportable segment (2,615,257) 16,899 (2,598,358)
----------------------------- ------------------- ----------------- ------------
7. Intangible assets
The movement in capitalised intangible costs during the period
was as follows:
Goodwill Development Technology Customer Total
Cost and Net Costs assets relationships
Book Value GBP GBP GBP GBP GBP
-------------------- ---------- ------------ ------------ --------------- ------------
Balance as at
1 April 2023 9,965,895 - 9,660,673 682,710 20,309,278
Additions - 517,018 - - 517,018
Amortisation - (305,594) (1,008,998) (47,203) (1,361,795)
As at 30 September
2023 9,965,895 211,424 8,651,675 635,507 19,464,501
-------------------- ---------- ------------ ------------ --------------- ------------
8. Convertible Loans
30 September 31 March
2023 2023
GBP GBP
--------------------------------------- ------------ ---------
Not later than one year:
Convertible loan note 2,250,000 2,250,000
Convertible loan note interest to date 119,971 63,567
Derivative split (51,798) (51,798)
Total 2,318,173 2,261,769
--------------------------------------- ------------ ---------
On the 4 May 2022, the Company entered into a formal agreement
for a GBP1.0m convertible loan note to be provided by Richard
Bernstein, Non-Executive Chairman of the Company.
On 17 June 2022, the Company entered into a convertible loan
facility agreement with David Kyte, a long-term shareholder in the
Company for GBP500,000.
On the 12 September 2022, the Company entered into a formal
agreement for a GBP750,000 convertible loan note to be provided by
Richard Bernstein, Non-Executive Chairman of the Company.
On 22 December 2022, the Company agreed revised terms for both
the convertible loan note (CLN) agreements with Richard Bernstein
and David Kyte for GBP1m and GBP0.5m respectively.
9. Events after the balance sheet date
On 15 November 2023, the Company announced the disposal of two
group subsidiaries - Sport in Schools Limited and The Elms Group
Limited. The subsidiaries were sold to Haygreen Limited for a cash
consideration of GBP300,000. Pursuant to the disposal, Sport in
Schools declared a dividend payable to Pantheon Leisure Plc of
approximately GBP262,000.
On 15 November 2023, the Company also announced the receipt of
notice from Richard Bernstein to convert the current balance of the
convertible loan, being GBP785,076 into 3,925,380 ordinary shares
at a conversion price of 20.0 pence per share.
10. Approval of interim financial statements
The Condensed interim financial statements were approved by the
Board of Directors on 19 December 2023.
11. Availability of this announcement
Copies of this announcement are available from Insig AI website
at www.insg.ai.
**ENDS**
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END
IR MZMMZRLLGFZM
(END) Dow Jones Newswires
December 20, 2023 02:00 ET (07:00 GMT)
Insig Ai (LSE:INSG)
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