TIDMINX
RNS Number : 7863X
i-nexus Global PLC
28 April 2023
28 April 2023
i-nexus Global plc
("i-nexus", the "Company" or the "Group")
Interim Results
i-nexus Global plc (AIM: INX), a leading provider of cloud-based
Strategy software solutions designed for the Global 5000, today
provides its unaudited results for the 6 months ended 31 March
2023.
Financial Highlights
-- Monthly Recurring Revenue ('MRR') increased 25% year-on-year
to GBP281k and 12% since the start of the period (30 September
2022: GBP250k, 31 March 2022: GBP225k) driven by a further five new
business wins and the expansion of several existing customer
relationships; equivalent Underlying MRR(1) was GBP275k (30
September 2022: GBP250k, 31 March 2022: GBP230k)
-- Total revenue, 93% of which is recurring, increased by 9% to
GBP1,673k (H1 2022: GBP1,540k) through the new business and
expansion successes since the start of FY22
-- Net retention(2) in the period improved to 103% (H1 2022:
95%), highlighting both the increasing strength of our client
relationships and quality of our product
-- A select number of strategic investments during the second
half of 2022, considered fundamental to the Group realising the
market opportunity, has led to Adjusted EBITDA(3) loss increasing
to GBP358k (H1 2022: GBP138k)
-- Loss after tax for the period of GBP491k (H1 2022: GBP283k)
as a result of the aforementioned strategic investments
-- Cash and cash equivalents at the period end improved to
GBP147k (30 September 2022: GBP99k), with the Group continuing with
its plan of deferring the placement of additional investment beyond
2022 levels until such time that revenue growth delivers a position
of at least Adjusted EBITDA breakeven
-- Trade receivables (net) have increased to GBP1,127k due to
the timing of receipt of annual licence fee invoices issued (31
March 2022: GBP702k)
-- The growth in the Group's MRR resulted in deferred revenue
increasing to GBP1,927k at 31 March 2023 (31 March 2022:
GBP1,655k). The Group's cash collection disciplines remain strong
with DSO (debtor days) at 31 March 2023 of 60 (31 March 2022:
70)
Operational Highlights and Outlook
-- Three material account expansions, two of which were logos
signed in 2022, highlighting the speed of value being derived from
the product alongside the increased market need for digitalised
strategy solutions
-- The delivery of fourteen new logos in the last 18 months has
highlighted clear, common areas where we can continue to make
improvements and where we are focusing our development activities .
These improvements will benefit all existing customers, whilst
supporting increased conversion in new business
-- On track to deliver improved double-digit net MRR growth in
FY23, capitalising on the increased opportunities within our base
and strong prospect pipeline
Simon Crowther, Chief Executive, of i-nexus Global plc,
commented:
" The market for i-nexus software continues to expand, with an
increasingly remote or hybrid workforce across multiple industries
driving the need for scalable, robust, digital strategy execution
tools. We continue to steadily add to our customer base and have
considerably improved the retention and expansion rates of our
customers.
The Board is confident i-nexus is well positioned, with a
differentiated offering, to play a leadership role in this maturing
market and the management team are focused on delivering a year of
growth, alongside the continued management of our cash
resources."
For further information please contact:
i-nexus Global plc Via: Alma PR
Simon Crowther, CEO
Drew Whibley, CFO
Singer Capital Markets (Nominated Tel: +44 (0)207 496
Adviser and Broker) 3000
S andy Fraser / Alex Bond / J ake
Humphrey
(Corporate Finance)
Alma PR Tel: +44 (0)203 405
Caroline Forde / Robyn Fisher 0205
About i-nexus Global plc
i-nexus Global plc ("i-nexus") helps organisations achieve their
goals. Whether executing a strategy, driving operational excellence
and continuous performance improvement, or coordinating portfolios
and programs to transform results, i-nexus strategy software
underpins success.
Today, we support organisations in managing over 200,000
strategic programmes around the world.
i-nexus transforms how organisations plan, execute, and track
goals. We inspire the confidence to leave behind the spreadsheets,
presentations and reports those organisations rely on, replacing it
with a cloud-based, collaborative solution.
Throughout this announcement:
(1) Underlying MRR excludes MRR movements related to IFRS
adjustments and Foreign Exchange variances, these items are
included within the Reported MRR value.
(2) Net Retention is measured by the total of on-going MRR at
the period-end from clients in place at the start of the period as
a percentage of the opening MRR from those clients.
(3) Adjusted EBITDA excludes the impact of any impairment, loss
on disposal of assets, share based payment expenses and
non-underlying items
Overview
i-nexus is pleased to report on a period of encouraging progress
for the business, with the continued delivery of new business wins
being well supported by the expansion opportunities secured within
our client base.
These sales successes, combined with the continued improvement
in net revenue retention levels, resulted in the Group delivering
double-digit MRR growth in the period whilst continuing to operate
a strong sales pipeline, with multiple businesses in active
dialogue or trials.
This success is underpinned by the decision at the start of 2022
to revise our Go-to-Market strategy, shifting our marketing focus
to a content-led strategy and deliberately securing smaller initial
deals, servicing limited business areas or teams within the
customer where demonstration of value would lead to significant
expansion opportunities.
In order to ensure the business is best placed to realise the
growing market opportunity, during the first half of the year the
Group launched several strategic initiatives which focused on
streamlining the onboarding process, ensuring we continue to drive
our value proposition and best practice into our sales discussions
and simplification of our product demonstrations, particularly
around our key differentiator: our ability to deliver Hoshin Kanri
methodology.
Our marketing engine is performing well, with the strength of
the pipeline corresponding well to the level of investment. During
the second quarter, the business took the strategic decision to
reduce marketing expenditure, choosing instead to increase
investment in other areas of the team, to ensure we have the
ability to continue to deliver for our growing customer base.
Positive progress with partners has been achieved in the period,
with the Group securing approximately three new consulting partner
leads per month. The business has now started to focus on
re-engaging in its partner program, believing they have
considerable potential to increase our sales pipeline. The Board is
actively considering ways to capitalise on this interest.
Trading
Since the start of the current financial year, the Company has
secured five new logos (H1 2022: 5), each with expansion potential,
building on the record nine new logos signed in the prior year.
These successes include a large tier 1 automotive manufacturer,
secured via our UK reseller, who successfully demonstrated the
value of a rigorous and systematic approach to strategy.
A key highlight for the business during the first half of the
year is that a number of these logos are already showing the
potential for either stepped growth or are considering business
wide rollouts, in addition to the three material expansions being
secured in H1. This is a testament to the value the deployment team
are demonstrating.
The Group renewed well over 90% of its customers, a considerable
improvement on the prior year period, reflecting the rigour and
routine that has been brought to the review of accounts with our
customer stakeholders, and the release of enterprise software
budgets following the freeze experienced during Covid times.
These new logo wins and account expansions, alongside the
continued improvement in net revenue retention levels, delivered
year-on-year growth in MRR of 25% to GBP281k MRR and 12% since the
start of the period (30 September 2022: GBP250k, 31 March 2022:
GBP225k).
Market Opportunity
All businesses set goals, plan how to deliver them and track
performance. The challenge is whether they can do this at pace,
with insight and high levels of visibility across their complex
ecosystems where i-nexus' software delivers considerable value. Our
software category - Strategy Execution Management ('SEM') -
continues to evolve and gain momentum as companies accelerate
digitalising mission-critical processes in this post-pandemic
world. The Group is beginning to see increased demand from
customers looking to digitalise strategy execution. Post-Covid
traditional analogue methods have proven ineffective for remote
working. These customers acknowledge market disruption and seek
tools that enable responsiveness to changing conditions.
The business is seeing two clear customer priorities around
improving the strategic planning process (and in particular, the
adoption of Hoshin Kanri) and connecting the planning process with
the delivery engine: a traditional project management office or a
new strategy realisation office driving organisation alignment.
Accompanying this is an increased level of sophistication in our
market, with prospects frequently now coming to us with very well
thought through capability requirements, having pre-evaluated
i-nexus against the competition on a matrix of criteria. We
continue to see that i-nexus has two clear advantages in strategy
execution against Strategy Portfolio Management ('SPM') vendors:
powerful strategic planning and performance management capabilities
that complement portfolio management features, plus, i-nexus'
customers benefit from insight gained from over fifteen years of
market experience in strategy execution.
People
The Board wishes to thank its employees for the excellent
support and commitment they are providing to the business and to
our clients, highlighted by the successes achieved. The results are
even more impressive when taking into account the size of the team.
Each person has gone above and beyond to grow sales momentum,
develop our products and deepen customer relationships.
Strategic focus for H2
1. To accelerate the landing of new logos - The business has
managed to reduce friction in buying i-nexus through a more
streamlined contracting process whilst enhancing the trial
experience as planned. The Group is seeing increased evidence of
trials advancing to where we feel confident in marketing them more
widely and we are also witnessing early signs of shorter buying
cycles.
2. Prove our ability to expand within accounts - A key highlight
during the first half of the year was the delivery of three
material expansions, two of which were logos secured in 2022. With
a further five new logos signed in the period, proving the land and
expand strategy is repeatable across both these and the other
clients secured in 2022 is a key focus for the Group. In order to
fully realise this opportunity, the business launched an updated
set of value measures and increased its levels of customer
interaction through marketing initiatives and forums.
3. Improve the customer experience within our Workbench product
- The Group continues to focus on the challenges customers face in
the process of strategy execution rather than outputs for insight.
The delivery of the fourteen new logos secured in the last 18
months has highlighted clear, common areas where we can continue to
make improvements and where we are focusing our development
activities. These improvements will benefit all existing customers,
whilst supporting increased conversion in new business. A process
of defining best practice Strategy process and mapping it to the
product is also underway.
We believe that through continued focus on these programs, we
will drive the success of the business.
Outlook
Following the growth in MRR achieved in H1 and our careful
management of the impacts of cost inflation on the business, we
continue to have clear visibility of our cash runway. The growing
interest in strategy software, the relaxation of enterprise
software budgets, the enhancements we have made to our products and
our increased sales and marketing skills, all combine to provide us
with confidence in our outlook.
The market for i-nexus software continues to expand, with an
increasingly remote or hybrid workforce across multiple industries
driving the need for scalable, robust, digital strategy execution
tools. We continue to add steadily to our customer base and have
considerably improved the retention and expansion rate of our
customers.
The Board is confident i-nexus is well positioned, with a
differentiated offering, to play a leadership role in this maturing
market and the management team are focused on delivering a year of
growth. Alongside the continued management of our cash resources,
the Board continues to consider the available options at its
disposal in order to strengthen the Group's cash position.
Financial Performance
Revenue
Licence revenues
i-nexus' Monthly Recurring Revenue ('MRR') at 31 March 2023
totalled GBP281k (30 September 2022: GBP250k, 31 March 2022:
GBP225k) representing overall year-on-year growth of 25% and growth
of 12% since the start of the period as the business secured five
new logos (H1 2022: five), building on the record nine secured in
FY22, alongside material expansions in three accounts (H1 2022:
two).
Highlighting both the increasing strength of our client
relationships and quality of our product, net retention (measured
by the total value of on-going MRR at the period-end from clients
in place at the start of the period as a percentage of the opening
MRR from those clients) in the period grew to 103% (H1 2022:
95%).
As predicted, licence revenues recognised in H1 2023 increased
by 10% to GBP1,555k (H1 2022: GBP1,416k), with the new business and
account expansion successes since the start of 2022 expected to
drive further increases during the second half of the year. These
revenues now represent 93% of overall revenue (H1 2022: 92%).
Services revenues
Revenue from associated professional services was in line with
prior period levels at GBP118k (H1 2022: GBP124k).
Gross Margin
Gross Margin in the period remained stable at 77% (H1 2022: 77%)
with the increase in revenue driving the uplift from GBP1,188k to
GBP1,293k.
Reported Gross Margin is the combined gross margin over both
recurring software subscriptions and professional services.
Adjusted EBITDA
Adjusted EBITDA (EBITDA excluding the impact of impairment, loss
on disposal of assets, share-based payments and non-underlying
items) totalled a loss of GBP358k for the period (H2 2022: loss of
GBP414k, H1 2022: loss of GBP138k), with the increase in overhead
costs of GBP350k against H1 2022 levels reflecting the Board's
decision during the second half of 2022 to accelerate a select
number of investments both in its existing employee base to
preserve retention and in additional resource needed for
operational delivery. The strengthening of the team was considered
fundamental to the Group realising the market opportunity and
delivering on the next stage of its growth strategy, a strategy
which has started to play out during H1.
As mentioned in the FY22 Annual Report, there remains no plans
to make further investments until such time as revenue growth is
delivering a positive Adjusted EBITDA.
Depreciation, amortisation and impairment
Total costs in respect of depreciation, amortisation, and
impairment were GBP106k (H1 2022: GBP89k). With the business having
low capital expenditure requirements, the value is principally made
up of amortisation on intangible assets, being capitalised
development costs (GBP99k, H1 2022: GBP59k).
These costs are re ective of the continual evolution of the
market in which the Group operates, the needs of its customers,
both present and prospective, and the Group's agile approach to
continually developing and improving its o ering.
Non-underlying items
Non-underlying items totalling GBP11k in H1 2023 comprise
redundancy costs. No such costs were incurred in the year ended 30
September 2022.
Statutory results
The Group reported a loss before taxation for the six month
period of GBP596k (H2 2022: GBP762k, H1 2022: GBP343k).
Cash and cash equivalents
Cash and cash equivalents at 31 March 2023 improved to GBP147k
(30 September 2022: GBP99k, 31 March 2022: GBP694k).
Careful cash management will continue to be a priority focus for
the Board. As previously outlined, there are currently no plans to
increase the existing cost base in the second half of 2023 until
such time as revenue growth delivers a position of at least
Adjusted EBITDA breakeven.
The Group prepares budgets, cash ow forecasts and undertakes
scenario planning to ensure that the Group can meet its liabilities
as they fall due. The Board's assessment in relation to going
concern is included in note 2 of this report.
Balance sheet
Trade receivables (net) have increased to GBP1,127k at 31 March
2023 due to the timing of receipt of annual licence fee invoices
issued (31 March 2022: GBP702k). This amount is expected to be
received in line with the Group's DSO.
The growth in the Group's MRR resulted in deferred revenue
increasing to GBP1,927k at 31 March 2023 (31 March 2022:
GBP1,655k). The Group's cash collection disciplines remain strong
with DSO (debtor days) at 31 March 2023 of 60 (31 March 2022:
70).
Principal risks and uncertainties
The Group's principal risks and uncertainties are set out in
note 7 of this report.
CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE
INCOME
For the six months ended 31 March 2023
Unaudited Unaudited six Audited
six months months ended year ended
ended 31 31 March 2022 30 September
March 2023 2022
GBP GBP GBP
Revenue 1,673,443 1,540,267 3,126,804
Cost of sales (380,319) (351,892) (666,280)
----------------------------- ------------ --------------- --------------
Gross profit 1,293,124 1,188,375 2,460,524
Administrative expenses (1,769,235) (1,418,905) (3,408,424)
----------------------------- ------------ --------------- --------------
Operating loss (476,111) (230,530) (947,900)
Investment revenues 13 11 68
Financing costs (119,533) (112,575) (231,288)
Other gains and losses - - 73,845
----------------------------- ------------ --------------- --------------
Loss before tax (595,631) (343,094) (1,105,275)
Income tax income 104,456 60,391 234,391
----------------------------- ------------ --------------- --------------
Loss for the period (491,175) (282,703) (870,884)
Other comprehensive
income:
Items that will not
be reclassified to profit
or loss
Currency translation
differences 38,529 38,884 (486)
----------------------------- ------------ --------------- --------------
Total other comprehensive
income for the period 38,529 38,884 (486)
----------------------------- ------------ --------------- --------------
Total comprehensive
income for the period (452,646) (243,819) (871,370)
----------------------------- ------------ --------------- --------------
GBP GBP GBP
Basic and diluted earnings
per share (0.02) (0.01) (0.03)
Adjusted EBITDA (358,367) (137,552) (552,357)
Depreciation, amortisation,
impairment and profit/loss
on disposal (106,163) (88,666) (384,975)
Share based payment
expenses (1,081) (4,312) (10,568)
Non-underlying items (10,500) - -
----------------------------- ------------ --------------- --------------
Operating loss (476,111) (230,530) (947,900)
----------------------------- ------------ --------------- --------------
CONDENSED CONSOLIDATED INTERIM BALANCE SHEET
As at 31 March 2023
Unaudited Unaudited Audited
as at as at as at
31 March 31 March 30 September
2023 2022 2022
GBP GBP GBP
Assets
Non-current assets
Intangible assets 876,877 1,120,015 915,696
Property, plant and equipment 29,874 40,919 26,413
906,751 1,160,934 942,109
Current assets
Trade and other receivables 1,221,216 1,245,602 781,838
Current tax recoverable 100,000 50,000 224,000
Cash and cash equivalents 147,256 694,202 98,987
------------------------------- ------------- ------------- --------------
1,468,472 1,989,804 1,104,825
------------------------------- ------------- ------------- --------------
Total assets 2,375,223 3,150,738 2,046,934
------------------------------- ------------- ------------- --------------
Current liabilities
Trade and other payables 742,195 866,349 682,840
Borrowings 9,707 9,586 9,707
Deferred income 1,927,483 1,655,075 1,319,674
2,679,385 2,531,010 2,012,221
------------------------------- ------------- ------------- --------------
Net current liabilities (1,210,913) (541,206) (907,396)
------------------------------- ------------- ------------- --------------
Non-current liabilities
Trade and other payables 333,407 140,310 254,407
Borrowings 27,564 37,271 32,387
Convertible loan notes 1,805,438 1,839,858 1,766,925
2,166,409 2,017,439 2,053,719
Total liabilities 4,845,794 4,548,449 4,065,940
------------------------------- ------------- ------------- --------------
Net liabilities (2,470,571) (1,397,711) (2,019,006)
------------------------------- ------------- ------------- --------------
Equity
Called up share capital 2,957,161 2,957,161 2,957,161
Share premium account 7,256,188 7,256,188 7,256,188
Foreign exchange reserve 39,919 40,760 1,390
Share option reserve 21,143 17,301 20,062
Equity reserve 231,851 231,851 231,851
Merger reserve 10,653,881 10,653,881 10,653,881
Retained earnings (23,630,714) (22,554,853) (23,139,539)
Total Equity (2,470,571) (1,397,711) (2,019,006)
------------------------------- ------------- ------------- --------------
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
For the six months ended 31 March 2023
Unaudited Unaudited Audited
as at as at as at
31 March 31 March 30 September
2023 2022 2022
GBP GBP GBP
Operating activities
Loss after tax (491,175) (282,703) (870,884)
Adjusted for non-cash items:
Taxation credit (104,456) (60,391) (234,391)
Amortisation, depreciation,
and adjustments on disposal 106,163 88,666 384,975
Share-based payment expense 1,081 4,312 10,568
Finance income (13) (11) (68)
Finance charges 119,533 112,575 231,288
Other gains - - (73,845)
---------------------------------- ------------ ------------ --------------
(368,867) (137,552) (552,357)
(Increase)/decrease in trade
and other receivables (439,378) (453,654) 10,126
Increase in trade and other
payables 671,620 538,951 20,043
---------------------------------- ------------ ------------ --------------
Cash used in operations (136,625) (52,255) (522,188)
Income tax refund 224,000 285,392 285,391
---------------------------------- ------------ ------------ --------------
Net cash inflow/(outflow) from
operating activities 87,375 233,137 (236,797)
Investing activities
Purchase of property, plant
and equipment (10,805) (3,177) (24,443)
Purchase of intangible assets
- internally generated (60,000) (80,000) (136,234)
Interest received 13 11 68
---------------------------------- ------------ ------------ --------------
Net cashflow used in investing
activities (70,792) (83,166) (160,609)
Financing activities
Repayment of borrowings (4,823) (66,662) (71,425)
Interest paid (2,020) (3,194) (6,899)
---------------------------------- ------------ ------------ --------------
Net cash flow used in financing
activities (6,843) (69,856) (78,324)
Net increase/(decrease) in
cash and cash equivalents 9,740 80,115 (475,730)
Cash and cash equivalents at
beginning of period 98,987 575,203 575,203
Effect of foreign exchange rates 38,529 38,884 (486)
---------------------------------- ------------ ------------ --------------
Cash and cash equivalents at
end of period 147,256 694,202 98,987
---------------------------------- ------------ ------------ --------------
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN
EQUITY
For the six months ended 31 March 2023
Share Foreign
Share Share Equity option exchange Merger Accumulated Total
Capital Premium Reserve Reserve reserve reserve losses Equity
GBP GBP GBP GBP GBP GBP GBP GBP
Balance at 1
October
2022 2,957,161 7,256,188 231,851 20,062 1,390 10,653,881 (23,139,539) (2,019,006)
--------------- ---------- ---------- -------- -------- --------- ----------- ------------- ------------
Six months
ended 31 March
2023:
Loss for the
period - - - - - - (491,175) (491,175)
Other
comprehensive
income:
Exchange
differences
on
foreign
operations - - - - 38,529 - - 38,529
--------------- ---------- ---------- -------- -------- --------- ----------- ------------- ------------
Total
comprehensive
income
for the
period - - - - 38,529 - (491,175) (452,646)
--------------- ---------- ---------- -------- -------- --------- ----------- ------------- ------------
Transactions
with owners
in their
capacity as
owners
Share options
expense
in the period - - - 1,081 - - - 1,081
--------------- ---------- ---------- -------- -------- --------- ----------- ------------- ------------
Total
contributions
by
and
distributions
to owners
of the
company
recognised
directly into
equity - - - 1,081 - - - 1,081
Balance at 31
March 2023
(unaudited) 2,957,161 7,256,188 231,851 21,143 39,919 10,653,881 (23,630,714) (2,470,571)
--------------- ---------- ---------- -------- -------- --------- ----------- ------------- ------------
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN
EQUITY
For the six months ended 31 March 2022
Share Foreign
Share Share Equity option exchange Merger Accumulated Total
Capital Premium Reserve Reserve reserve reserve losses Equity
GBP GBP GBP GBP GBP GBP GBP GBP
Balance at 1
October
2021 2,957,161 7,256,188 231,851 12,989 1,876 10,653,881 (22,272,150) (1,158,204)
--------------- ---------- ---------- -------- -------- --------- ----------- ------------- ------------
Six months
ended 31 March
2022:
Loss for the
period - - - - - - (282,703) (282,703)
Other
comprehensive
income:
Exchange
differences
on
foreign
operations - - - - 38,884 - - 38,884
--------------- ---------- ---------- -------- -------- --------- ----------- ------------- ------------
Total
comprehensive
income
for the
period - - - - 38,884 - (282,703) (243,819)
--------------- ---------- ---------- -------- -------- --------- ----------- ------------- ------------
Transactions
with owners
in their
capacity as
owners
Share options
expense
in the period - - - 4,312 - - - 4,312
--------------- ---------- ---------- -------- -------- --------- ----------- ------------- ------------
Total
contributions
by
and
distributions
to owners
of the
company
recognised
directly into
equity - - - 4,312 - - - 4,312
Balance at 31
March 2022
(unaudited) 2,957,161 7,256,188 231,851 17,301 40,760 10,653,881 (22,554,853) (1,397,711)
--------------- ---------- ---------- -------- -------- --------- ----------- ------------- ------------
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS
1. General information
i-nexus Global plc (the "Company") and its subsidiaries
(together, the Group) is a specialist provider of cloud based
strategy software and associated professional services.
The Company is a public limited company domiciled in the UK and
incorporated in England and Wales (registered number 11321642) and
its registered office is 27-28 Eastcastle Street, London, W1W
8DH.
The interim condensed consolidated financial statements were
approved for issue on 27 April 2023.
These condensed consolidated interim financial statements do not
comprise statutory accounts within the meaning of section 434 of
the Companies Act 2006. Statutory accounts for the year ended 30
September 2022 were approved by the Board of Directors on 6 January
2023 and delivered to the Registrar of Companies. The report of the
auditors on those accounts was unqualified, did not contain an
emphasis of matter paragraph and did not contain any statements
under section 498 of the Companies Act 2006.
2. Basis of preparation
These condensed consolidated interim financial information for
the six months ended 31 March 2023 have not been audited or
reviewed by the auditors. The interims have been prepared in
accordance with the Disclosure and Transparency Rules of the
Financial Services Authority and with IAS 34, 'interim financial
reporting'. These condensed consolidated interim financial
statements should be read in conjunction with the annual financial
statements for the year ended 30 September 2022, which have been
prepared in accordance with UK adopted international accounting
standards and company law. The interim condensed consolidated
financial information has been prepared on a going concern basis
and is presented in Sterling to the nearest GBP1.
After reviewing the Group's forecasts and projections, the
Directors have a reasonable expectation that the Group has adequate
resources to continue in operational existence for the foreseeable
future, being a period of at least twelve months from the date of
approval of these interim financial statements.
A scenario testing exercise, in which the Directors prepared
detailed cash flow forecasts for the period covered by the going
concern forecast, was performed. The forecasts take into account
the Directors' views of current and future economic conditions that
are expected to prevail over the period including assumptions
regarding the sales pipeline, future revenues and costs with
various scenarios which reflect growth plans, opportunities and
risks.
Alongside management's base case forecast, the Group prepared an
extreme downside scenario. Under this extreme scenario, the Group
has given consideration to the potential actions available to
management to mitigate the impact of these sensitivities, in
particular the discretionary nature of costs incurred by the Group,
in order to ensure the continued availability of funds. Across both
this scenario and those scenarios detailed above, the business had
sufficient working capital headroom to continue to operate.
Financial performance in the next 12 months is not expected to
be materially impacted from current period levels due to the
long-range revenue visibility achieved through the recurring
revenue business model. These recurring revenues, representing 90%
of total revenue, are considered resilient given the majority are
on multiyear terms. In each scenario, the Board also assumed that
the Group did not have access to any further external funding.
3. Accounting policies
The accounting policies adopted are consistent with those of the
previous financial statements, except in respect of taxes on income
which, in the interim periods, are accrued using the tax rate that
would be applicable to expected total annual performance. New and
amended standards and interpretations need to be adopted in the
first interim financial statements issued after their effective
date. There are no new IFRSs or IFRICs that are effective for the
first time for this interim period that would be expected to have a
material impact on the financial statements.
4. Estimates
The preparation of interim financial statements requires
management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported
amounts of assets, liabilities, income and expense. Actual results
may differ from these estimates. In preparing these condensed
consolidated interim financial statements, the significant
judgements made by management in applying the Group's accounting
policies and the key sources of estimation uncertainty were the
same as those that applied to the consolidated financial statements
for the year ended 30 September 2022, with the exception of changes
in estimates that are required in determining the provision for
income taxes.
5. Segmental reporting
The Group has one single business segment and therefore all
revenue is derived from the rendering of services as stated in the
principal activity. The Group operates in six geographical
segments, as set out below. This is consistent with the internal
reporting provided to the chief operating decision maker. The chief
operating decision maker, who is responsible for allocating
resources and assessing performance, has been identified as the
management team comprising the executive directors who make
strategic decisions.
Unaudited six Unaudited six
months ended months ended
31 March 31 March
2023 2022
GBP GBP
Revenue analysed by class of
business
Licence 1,555,026 1,415,940
Services 118,417 124,327
1,673,443 1,540,267
Unaudited six Unaudited six
months ended months ended
31 March 31 March
2023 2022
GBP GBP
Revenue analysed by geographical
market
United Kingdom 360,016 362,005
USA 558,519 426,297
Switzerland 322,830 319,007
Germany 251,355 224,446
Rest of Europe 112,382 69,872
Rest of the World 68,341 138,640
1,673,443 1,540,267
6. Earnings 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 GBP491,175 (six months to 31 March 2022:
GBP282,703, year ended 30 September 2022: GBP870,884) and a
weighted average number of ordinary shares in issue of 29,571,605
(six months to 31 March 2022: 29,571,605, year ended 30 September
2022: 29,571,605), calculated as follows:
Weighted average number of ordinary shares
Unaudited Unaudited
six months six months Audited year
ended ended ended
31 March 31 March 30 September
2023 2022 2022
-------------
Loss for the period attributable
to equity s hareholders of
the company (491,175) (282,703) (870,884)
---------------------------------- ------------ ------------ -------------
Issued ordinary shares at start
of period 29,571,605 29,571,605 29,571,605
Weighted average number of
shares at end of period 29,571,605 29,571,605 29,571,605
---------------------------------- ------------ ------------ -------------
Earnings per share (0.02) (0.01) (0.03)
7. Principal risks and uncertainties
Pursuant to the requirements of the Disclosure and Transparency
Rules the Group provides the following information on its principal
risks and uncertainties. The Group considers strategic, operational
and financial risks and identifies actions to mitigate those risks.
These risk profiles are updated at least annually. The principal
risks and uncertainties detailed within the Group's 2022 Annual
Report remain applicable for the first six months of the financial
year. The Group's 2022 Annual Report is available from the i-nexus
website: www.i-nexus.com/company/investor-center/
8. 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 Group 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.
9. Statement of Directors' Responsibilities
The Directors confirm that these condensed interim financial
statements have been prepared in accordance with International
Accounting Standard 34, 'Interim Financial Reporting', and that the
interim management report includes a fair review of the information
required by DTR 4.2.7 and DTR 4.2.8, namely:
- an indication of important events that have occurred during
the first six months and their impact on the condensed set of
financial statements, and a description of the principal risks and
uncertainties for the remaining six months of the financial year;
and
- material related-party transactions in the first six months
and any material changes in the related-party transactions
described in the last annual report.
The Directors of i-nexus Global plc are listed in the i-nexus
Group plc Annual Report for 30 September 2022. A list of current
directors is maintained on the i-nexus Global plc website:
www.i-nexus.com/company/team/ . Copies of this statement are
available on the investor relations page of our website (
www.i-nexus.com/company/investor-center/ )
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR SELEFWEDSESL
(END) Dow Jones Newswires
April 28, 2023 02:00 ET (06:00 GMT)
I-nexus Global (LSE:INX)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
I-nexus Global (LSE:INX)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024