TIDMSBDS
RNS Number : 2564B
Silver Bullet Data Services Grp PLC
01 June 2023
1 June 2023
Silver Bullet Data Services Group plc
("Silverbullet" or the "Company", or, together with its
subsidiaries, the "Group")
Preliminary Results for the year ended 31 December 2022
Silverbullet (AIM: SBDS), a provider of digital transformation
services and products, is pleased to announce its unaudited
preliminary results for the year ended 31 December 2022.
FINANCIAL HIGHLIGHTS.
Year ended December Year ended December
2022 2021
Revenue GBP5.82m GBP3.81m
Gross Profit GBP4.22m GBP2.79m
Headline Loss before GBP6.10m GBP6.10m
tax*
Reported Loss before GBP7.54m GBP8.57m
tax
Earnings Per Share (GBP0.49) (GBP0.73)
* Headline results are calculated before exceptional items and
share option charges, reconciliation per note 6 of the consolidated
financial statements.
Operational Highlights:
-- Revenue increased 53% to GBP5.82 million (2021: GBP3.81m)
-- 16 new services client wins in the period, including Mars,
Greene King and Entain Group
-- Consolidation of existing services clients as a result of
additional contract wins with Heineken, Sony and Salesforce.
-- Focus on growth in key markets of UK, US and Australia
-- '4D', Silverbullet's privacy-first contextual targeting and
insights platform was further enhanced and developed during
the year achieving the product road map and revenue targets
set by management
-- Management have successfully restructured the 4D team, having
reached key milestones on the product development roadmap,
to align cost structure with revenues and accelerate the path
to profitability
Post Period End - Convertible Loan Note Issue
It is noted that the Company intends to complete a debt raise
via a new convertible loan note imminently following the
publication of these results in order to provide the Company with
additional working capital to support the significant growth in
sales of 4D and its services offering.
Ian James, Chief Executive Officer of Silverbullet,
commented:
" 2022 was a year of considerable progress for Silverbullet. The
Company has seen significant growth based on the strong demand from
existing and new clients to transform their data and technology
capabilities to improve marketing ROI and deliver meaningful
customer experiences. The period saw 16 new services client wins,
including Mars, Greene King and Entain Group. To be trusted by
these multinational clients to spearhead their next phase of growth
is strong evidence that our strategy to accelerate our client's
business through the smart use of data in the privacy first era is
well received. The services division of our business continues to
underpin the group with both new clients and fast growth.
Additionally, with our 4D product having reached maturity, we are
now able to focus all resources on sales and delivery of client
revenue. Strong 4D bookings have been secured, with a healthy
pipeline in place, and we expect the significant 4D revenue growth
this year to continue to accelerate, especially in the US.
"Silverbullet is highly encouraged by the developments being
made and we are confident of achieving our expectations for the
current financial year. We look forward to providing further
updates to our shareholders throughout the year ahead."
For further information please contact:
Silverbullet via IFC
Ian James (CEO)
Strand Hanson Limited - Financial 0207 409
and Nominated Adviser 3494
James Spinney / James Bellman / Robert
Collins
0203 179
Oberon Capital - Broker 5344
Mike Seabrook / Chris Crawford /
Nick Lovering
020 3934
IFC Advisory 6630
Graham Herring / Tim Metcalfe / Florence 07793 839
Chandler 024
About Silverbullet
Silverbullet's proprietary 4D advertising solution is designed
to help advertisers target consumers in a "post cookie world". The
product is a natural extension to its existing services business
which already serves a blue-chip client base such as Heineken,
Channel 4, Amazon and ITV amongst many others. The removal of
third-party cookies has already been implemented by web browsers
such as Firefox and Safari, with Google expected to phase out the
use of cookies in 2024.
Headquartered in London, the Group employs employees across five
regions across the globe, including, the UK, Italy, Australia, USA
and Latin America. The Group continues to look at other
opportunities for expansion worldwide.
The Company has an established and growing services business
with significant accumulated industry experience and a proven track
record of delivering strategic projects and activation services to
its clients. The majority of the Board have held senior positions
at global software companies and have significant industry
experience across data engineering, SAAS product development and
marketing.
The Group has close technical and commercial partnerships with
multiple global technology providers, all of which have existing
sales channels and are already delivering to clients.
The Group has established a strategic partnership and an entity
with Local Planet, a scaled network of over 60 agencies across the
globe. Local Planet Data Services Limited was established in
December 2020 and presents a significant opportunity to provide
data services and the 4D product to the Local Planet agency
network.
CHAIRMAN'S STATEMENT.
It is my pleasure to present the annual results of Silverbullet
Data Services Group Plc. I am delighted with the progress made in
in 2022, delivering impressive revenue growth with a wide selection
of blue-chip clients. The development of 4D, our privacy-first
contextual targeting and insights platform, is largely complete and
is now starting to deliver significant revenue.
2022 was a challenging period for many companies in the media
and technology space. Whilst I am pleased with our top line growth,
I am equally satisfied with how the management team has controlled
costs and restructured elements of the business to ensure that the
Group operates efficiently and is appropriately set up for future
growth.
Results.
Revenue for the year was GBP5.82m (2021: GBP3.81m), driven
primarily by growth in our data-driven transformation services
business, providing data consultancy advice to numerous clients
across the world. Loss before tax was GBP7.54m (2021: GBP8.57m)
leading to a loss per share of 49p (2021: 73p). Cash as at 31
December 2022 was GBP1.35m (2021: GBP3.69m).
People.
The excellent Board of Directors for the Group remained
unchanged in 2022. Keith Sadler and Steven Clarke are independent
non-executive directors and are members of both our Audit and
Remuneration committees. Martyn Rattle has significant experience
in the Media and Technology space and provides excellent insights
and challenges to the Board. Keith Sadler resigned from his
position (post period end) on 9 March 2023 in order to focus on his
other business interests. I would like to thank Keith for his
contributions to the Group and wish him well in his future
endeavours. We are currently undergoing a search for a new
independent non-executive director who will join Steven Clarke on
the Audit and Remuneration committees.
I am privileged to be working with our three executive
directors, Ian James, Chief Executive Officer, Umberto Torrielli,
Chief Strategy Officer and Darren Poynton, Chief Financial Officer.
I would like to thank them for their focus and commitment in
leading the Group this year and driving the strategy of
business.
The Company's true strength is its people. We have expanded
during the year as well as restructured certain areas to drive
focus. I would like to thank all our employees across the world for
their dedication, expertise and commitment to generating such
impressive growth and development.
Overview.
In a world where data and privacy are essential considerations
for all companies, I am extremely pleased with the services that
the Group provides to its clients. The prospect for growth and
further development of the Group is extremely strong. The Board
will continue to work with the executive and management teams in
2023 to deliver on our strategy and to create value for our
shareholders.
Nigel Sharrocks
Non-Executive Chairman
CHIEF EXECUTIVE'S STATEMENT.
Throughout 2022, Silverbullet has seen significant growth based
on the strong demands from existing and new clients to transform
their data and technology capabilities to improve marketing ROI and
deliver meaningful customer experiences.
Customer Experience Services Outlook:
Silverbullet's Customer Experience (CX) Services division
delivered 19% year-on-year growth, having won 16 new clients
including Mars, Greene King and Entain. Further, the business has
renewed global services agreements with Heineken and Sony. Most
notably, our client base has substantially grown in the Americas,
having launched into the LATAM region with a central hub based in
Mexico. This new market opening, in combination with our North
American presence, has seen the business significantly expand its
US client base.
Our strategy of 'land and expand' has been fruitful, and this
can be seen through the continued client relationships with our
core flagship clients, including Heineken, Mars and Sony.
Silverbullet now works with Heineken in six markets, including UK,
US, Spain, Mexico, Brazil and Ireland. Our relationship with Mars
has expanded into the US and Australia, and with Sony we are
working in Europe, Singapore and Latin America.
Geographically, the business has focused on streamlining its
regional hubs into three key markets, the UK, the US and Australia.
This geo-focus has brought significant alignment throughout the
organisation, having enabled the regional leadership teams to focus
on the expansion of our global clients, which has consequently led
to substantial margin improvement.
Silverbullet's partnerships with Salesforce and Treasure Data
continue to thrive, enabling a new business pipeline focused on the
technical expertise surrounding the leading customer data platforms
and marketing automation tools. For example, year-on-year
Silverbullet has increased the volume of managed services projects
specifically related to data-driven marketing activation based on
the use of the technology and data infrastructure that we deployed
in 2021.
Further, as we look to support our clients in safeguarding them
for future challenges, Silverbullet is increasingly assessing how
clients can enable their first-party data to be deployed in media
activation environments such as programmatic video and Connected
TV. This pivotal approach to unlocking various compliant data sets
for improved marketing and advertising is opening the opportunity
to cross-sell the 4D product to our global CX services client base
to form a combined offering.
The business continues to invest in new talent in the customer
experience services division, expanding our skillset and
certifications across multiple marketing technologies. Silverbullet
maintains a clear focus on investing in (and training) its talent
pool which remains a key market differentiator.
4D Outlook:
Despite initial revenue headwinds in the first half of 2022, the
4D product in the second half of the year began to build
connections with key media agency partners, seeing considerable
revenue growth year-on-year. This revenue momentum has been
underpinned by media agencies requiring a more 'hands-on', managed
service approach to delivering smart contextual targeting and
insights across display and video advertising. This trend is set to
continue, and we expect to see revenue growth within this 'managed
service' model, as well as the original self-service approach.
Despite the further Google delay of the third-party cookie
deprecation in 2022, we have seen a significant change in mindset
from brands towards improved advertising approaches, as consumer
expectations and demands continue to push for personalised
experiences in a privacy-safe world. This change in mindset has
generated interest and bookings on the 4D platform that accelerated
in the second half of 2022 and has continued into 2023.
Having achieved maturity in the development of the 4D product,
the Group successfully completed a restructure of the 4D team
during Q3 and Q4 2022. This restructure reduced the headcount of
the product and engineering team and aligned the cost base with the
commercial traction of the product. With a mature 4D product and
structure, the management will be able to make any future
investment decisions in line with the commercial growth and market
opportunities.
Outlook.
Revenues in Q1 2023 (post period end) were c.GBP2.0m, which
represents a 107 per cent. increase on the previous year. During
the quarter, we also secured GBP1.8m of bookings with new or
existing clients. These new bookings, together with bookings of
GBP3.4m in Q4 2022 is driving significant growth in 2023. This
growth has been achieved from a cost base that is 7% lower than the
comparable prior year period, evidencing the Company's cost
management measures.
A notable feature of this strong growth in Q1 2023 is that over
30% of Group revenue was generated in the US market. Management
expects that this momentum will continue and the percentage of
overall revenue in the US to increase, driven by expansion of our
global client portfolio into this significant market.
With our 4D product having reached maturity, the complete focus
of the 4D business is on sales and delivery. Strong 4D bookings
have been secured and a strong pipeline has been developed. In May
2023, the Group announced its first 4D reseller contract with
Silverpush Global Pte Ltd, a global leader in cookieless and AI
powered advertising solutions, with 18 offices worldwide. The
partnership significantly increases 4Ds global sales reach.
Management is also negotiating additional complementary commercial
reseller partners. This traction reinforces the belief that 4D is
due to deliver significant growth in 2023 and beyond and confirms
our view that the product will deliver excellent long-term
shareholder value.
Whilst we still have over half a year's trading to go and the
macro-economic climate remains uncertain, we are confident of
achieving managements expectations for the current financial year
and look forward to providing further updates to our shareholders
throughout the year ahead.
Ian James
Chief Executive Officer
FINANCIAL REVIEW.
A year of great progress for the business in terms of
performance, development and structure.
Year ended Year ended
December 2022 December
2021
GBP GBP
Revenue 5,818,255 3,809,255
Cost of sales (1,598,973) (1,024,221)
Gross Profit 4,219,282 2,785,034
Other operating Income - 38,328
Distribution costs (799,272) (522,306)
Administrative expenses (10,810,386) (9,988,875)
Exceptional Items 42,154 (861,085)
Operating Loss (7,348,222) (8,548,904)
Finance Expense (188,551) (18,928)
Loss before taxation (7,536,773) (8,567,832)
Tax 314,741 57,150
Loss after taxation (7,222,033) (8,510,682)
Currency translation differences (84,236) 36,495
Total Comprehensive Loss
for the year (7,306,269) (8,474,187)
Revenue and Gross Profit.
Overall revenue of GBP5.82m represents growth of 53 per cent.
compared to 2021. During 2022, our customer experience services
division added 16 new client including significant agreements with
Mars, Greene King and Entain Group. We also renewed or extended
agreements with several existing clients including Heineken and
Sony. Having laid the foundations and invested in 4D sales and
delivery teams in 2021 4D revenue has grown 633% to GBP1.52m in
2022.
Gross profit of GBP4.22m represents growth of 51 per cent.
compared to 2021. Gross profit margin has remained constant year on
year at 73 per cent. The increase in revenue in customer experience
services would have helped to improve the gross profit margin but
the this is offset by increased 4D hosting and media costs.
Operating Expenditure.
Total Adjusted Operating Expenditure (Adjusted to exclude
depreciation, amortisation, share option expenses, exceptional
items) was GBP9.34m, which represents an increase of 11 per cent.
from 2021 (GBP8.40m).
Year ended Year ended
December 2022 December
2021
GBP GBP
Operating Expenses 11,567,504 11,372,266
Less
Depreciation (29,208) (36,255)
Amortisation (761,065) (475,809)
Share option Charge (1,476,183) (1,602,025)
Exceptional items 42,154 (861,085)
Adjusted Operating Expenses (9,343,201) (8,397,092)
Staff costs of GBP6.88m (excluding share option expenses)
continue to make up the majority of the operating expenses, this is
an increase of 27 per cent. on 2021 (GBP5.42m) largely driven by
increased staff costs to deliver the customer experience services
and the sales and delivery teams working on the 4D growth. Having
developed the 4D product to a position relative maturity in the
second half of the 2022 the company reduced the headcount of the
product and engineering team. During the year average staff numbers
have increased from 69 to 80.
Administrative expenses excluding staff costs have fallen to
GBP2.72m from GBP2.96m in 2021, this reflects management tightly
controlling costs in 2022 whilst delivering significant revenue
growth.
Taxation.
As a loss-making group, we do not currently incur corporation
tax. We do however benefit from a research and development tax
relief related to the development of 4D. The total tax relief for
the year was GBP0.35m.
Balance Sheet and cashflow.
We have continued to develop and invest in 4D our privacy-first
contextual targeting and insights platform in 2022 and we are now
in a position where we believe the product is reaching development
maturity. During the year GBP1.10m has been added the development
intangible asset account. Goodwill relates to the acquisition of
Silver Bullet Data Services Limited and Videobeet Italia Srl. We
have reviewed the carrying value of these investment and we are
comfortable that no impairment is required against these
assets.
In June 2022, the Group announced it had successfully raised
GBP4.6m. This comprised of a GBP2.494m equity subscription at a
price of GBP1 per ordinary share and GBP2.106m of convertible loan
notes (see note 19). At the year end and at today's date a payment
GBP186,000 relating to these convertible loan notes remains
outstanding from an individual. The Company has been informed that
this amount will be settled and is contact with the relevant
subscriber, however the timing of receipt remains uncertain.
Net cash flow used in operating activities was GBP5.14m (2021:
GBP7.22m). The decrease versus the prior year relates to the
reduction in losses during the period largely due to the increased
corporate costs in 2021 as a result of listing on the AIM
market.
The Group's cash balance decreased by GBP2.34m to GBP1.35
million in 2022 (2021: GBP3.69m).
The Company intends to complete a debt raise via a new
convertible loan note imminently following the publication of these
results in order to provide the Company with additional working
capital to support the significant growth in sales of 4D and its
services offering.
Darren Poynton
Chief Financial Officer
Consolidated statement of comprehensive income
Year ended 31 December 2022
Group
Note 2022 2021
Continuing operations GBP GBP
3,
Revenue 4 5,818,255 3,809,255
Cost of sales (1,598,973) (1,024,221)
Gross profit 4,219,282 2,785,034
Other operating income 5 - 38,328
Distribution costs (799,272) (522,306)
Administrative expenses (10,810,386) (9,988,875)
Exceptional items 6 42,154 (861,085)
------------
Operating (loss) 7 (7,348,222) (8,548,904)
Finance expense 10 (188,551) (18,928)
------------
(Loss) before taxation (7,536,773) (8,567,832)
Taxation 11 314,740 57,150
------------
(Loss) after taxation (7,222,033) (8,510,682)
Other comprehensive
income / (loss) net of
taxation
Currency translation
differences (84,236) 36,495
------------
Total comprehensive
(loss) for the year (7,306,269) (8,474,187)
============= ============
Total comprehensive
(loss) attributable to:
Equity shareholders of
the company (7,307,215) (8,479,438)
Non-controlling interest 946 5,251
(7,306,269) (8,474,187)
============= ============
(Loss) after taxation
attributable to:
Equity shareholders of
the company (7,222,979) (8,479,438)
Non-controlling interest 946 5,251
(7,222,033) (8,474,187)
============= ============
Earnings per share
Basic earnings 26 (0.49) (0.73)
Diluted earnings 26 (0.49) (0.73)
Consolidated and company statement of financial position
Year ended 31 December 2022
Group Company
2022 2021 2022 2021
Note GBP GBP GBP GBP
Non-current assets
Goodwill 12 4,349,662 4,349,662 - -
Intangible assets 12 2,544,739 2,206,742 - -
Investments 13 4,999 - 8,354,094 6,872,911
Tangible assets 14 53,809 42,115 - -
Total non-current
assets 6,953,209 6,598,519 8,354,094 6,872,911
Current assets
Trade and other receivables 16 2,487,844 2,264,972 285,574 78,522
Cash and cash equivalents 17 1,352,221 3,687,809 8,572 60
------------ ----------- ------------- ------------
Total current assets 3,840,065 5,952,781 294,146 78,582
Total Assets 10,793,274 12,551,300 8,648,240 6,951,493
Current liabilities
Trade and other payables 18 2,311,754 2,609,028 3,827,087 2,049,262
Loans and other borrowings 19 41,227 16,061 - -
------------ ----------- ------------- ------------
Total current liabilities 2,352,981 2,625,089 3,827,087 2,049,262
Non-current liabilities
Loans and borrowings 19 1,797,992 143,644 1,687,697 -
Deferred tax liability 20 632,190 547,892 - -
Total non-current
liabilities 2,430,182 691,536 1,687,697 -
------------ ----------- ------------- ------------
Total liabilities 4,783,163 3,316,625 5,514,784 2,049,262
------------ ----------- ------------- ------------
Net assets 6,010,111 9,234,675 3,133,456 4,902,231
============ =========== ============= ============
Equity
Share capital 22 159,367 134,227 159,367 134,227
Share premium 10,821,021 8,639,593 10,821,023 8,639,592
Share option reserve 23 2,396,396 1,275,363 2,396,396 1,275,363
Other reserves 24 398,954 - 398,954 -
Retained Earnings (7,679,183) (811,354) (10,642,334) (5,147,001)
Capital redemption
reserve 50 50 50 50
Foreign exchange reserve (92,741) (8,505) - -
------------ ----------- ------------- ------------
Equity attributable
to the equity shareholders
of the company 6,003,864 9,229,374 3,133,456 4,902,231
------------ ----------- ------------- ------------
Non-controlling interest 6,247 5,301 - -
Total equity 6,010,111 9,234,675 3,133,456 4,902,231
============ =========== ============= ============
The total comprehensive loss for the company for the year was
GBP5,850,480 (2021: GBP12,054,638).
Consolidated statement of cash flows
Year ended 31 December 2022
Group Company
2022 2021 2022 2021
GBP GBP GBP GBP
Note
Cash flows from operating
activities
(Loss) after tax from continuing
operations (7,222,033) (8,510,682) (5,850,480) (12,054,638)
Adjustments for:
Depreciation 14 29,209 36,255 - -
Amortisation 12 761,065 475,809 - -
Impairments 25 - - 5,450,737 11,815,479
Foreign exchange (84,236) 36,495 - -
Net finance expense 10 188,551 18,928 166,650 -
Share option charge 23 1,476,183 1,602,025 - -
Taxation expense 11 (314,740) (57,150) - -
(Increase) in trade and other
receivables 16 (80,151) (541,692) (64,332) (78,522)
(Decrease) / increase in
trade and other payables 18 (383,543) (841,335) (195,363) 317,741
Increase in deferred tax
liability 20 84,298 323,971 - -
------------ ------------ ------------ -------------
Cash used in operations (5,545,397) (7,457,376) (492,788) 60
Taxation refunded 401,008 235,412 - -
Net cash used in operating
activities (5,144,389) (7,221,964) (492,788) 60
------------ ------------ ------------ -------------
Cash flows from investing
activities
Purchase of tangible assets 14 (40,903) (41,430) - -
Purchase of intangible assets 12 (1,099,062) (1,459,274) - -
Purchase of investments 13 (4,999) - (4,999) -
Acquisition of non-controlling - 50 - -
interest
Net cash used in investing
activities (1,144,964) (1,500,654) (4,999) -
------------ ------------ ------------ -------------
Cash flows from financing
activities
Proceeds from borrowings 19 1,516,126 - - -
Repayment of borrowings 19 (3,263) (28,865) - -
Equity in convertible loan
notes issued 24 398,954 - - -
New equity issued (net of
transaction costs) 22 2,063,848 11,803,428 - -
Intercompany transactions - - 506,299 -
Interest paid (21,900) (18,928) - -
Net cash from financing
activities 3,953,765 11,755,635 506,299 -
------------ ------------ ------------ -------------
Net increase / (decrease)
in cash and cash equivalents (2,335,588) 3,033,017 8,512 60
Cash and cash equivalents
at beginning of period 3,687,809 654,792 60 -
------------ ------------ ------------ -------------
Cash and cash equivalents
at end of period 1,352,221 3,687,809 8,572 60
============ ============ ============ =============
Consolidated statement of changes in equity attributable to the
shareholders
Group
Share Share Share Other Retained Capital Foreign Total equity Non-controlling Total
Capital premium Option reserves earnings redemption exchange attributable interest equity
Reserve reserve reserve to
shareholders
GBP GBP GBP GBP GBP GBP GBP GBP GBP GBP
As at 1 January
2021 8,256 35,387,853 1,192,653 - (32,240,404) - (44,999) 4,303,359 - 4,303,359
Total comprehensive
loss for the year - - - - (8,515,932) - 36,494 (8,479,438) 5,251 (8,474,187)
Non-controlling
interest
in subsidiary share
capital - - - - - - - - 50 50
Share buyback and
cancellation (50) - - - - 50 - - - -
Bonus issue of
shares 87,255 (87,255) - - - - - - - -
Capital reduction - (38,425,667) - - 38,425,667 - - - - -
Share option charge - - 1,602,025 - - - - 1,602,025 - 1,602,025
Share options
exercised 312 19,111 (469,533) - 469,533 - - 19,423 - 19,423
Share options
forfeited/lapsed - - (1,049,782) - 1,049,782 - - - - -
Shares issued during
period (net of
transaction
costs) 38,454 11,745,551 - - - - - 11,784,005 - 11,784,005
-------- ------------- ------------ --------- ------------- ----------- --------- ------------- ---------------- ------------
As at 31 December
2021 134,227 8,639,593 1,275,363 - (811,354) 50 (8,505) 9,229,374 5,301 9,234,675
Total comprehensive
loss for the year - - - - (7,222,979) - (84,236) (7,307,215) 946 (7,306,269)
Convertible loan
notes issued - - - 398,954 - - - 398,954 - 398,954
Share option charge - - 1,476,183 - - - - 1,476,183 - 1,476,183
Share option
exercised 200 - (46,739) - 46,739 - - 200 - 200
Share options lapsed - - (308,411) - 308,411 - - - - -
Shares issued during
period (net of
transaction
costs) 24,940 2,181,428 - - - - - 2,206,368 - 2,206,368
--------- ------------- ---------------- ------------
As at 31 December
2022 159,367 10,821,021 2,396,396 398,954 (7,679,183) 50 (92,741) 6,003,864 6,247 6,010,111
======== ============= ============ ========= ============= =========== ========= ============= ================ ============
Company
Share Share Share Other Retained Capital Total
Capital premium Option reserves earnings redemption equity
Reserve reserve
GBP GBP GBP GBP GBP GBP GBP
As at 1 January 2021 8,256 35,387,855 1,192,653 - (33,037,348) - 3,551,416
Total comprehensive
loss for the
year - - - - (12,054,638) - (12,054,638)
Share buyback and
cancellation (50) - - - - 50 -
Bonus issue of shares 87,255 (87,255) - - - - -
Capital reduction - (38,425,667) - - 38,425,667 - -
Share option charge - - 1,602,025 - - - 1,602,025
Share options
exercised 312 19,111 (469,533) - 469,533 - 19,423
Share options
forfeited/lapsed - - (1,049,782) - 1,049,782 - -
Shares issued during
period (net
of transaction
costs) 38,454 11,745,551 - - - - 11,784,005
--------- ------------- ------------ ---------- ------------- ------------ -------------
As at 31 December
2021 134,227 8,639,595 1,275,363 - (5,147,004) 50 4,902,231
Total comprehensive
loss for the
year - - - - (5,850,480) - (5,850,480)
Convertible loan
notes issued - - - 398,954 - - 398,954
Share option charge - - 1,476,183 - - - 1,476,183
Share options
exercised 200 - (46,739) - 46,739 - 200
Share options lapsed - - (308,411) - 308,411 - -
Shares issued during
period (net
of transaction
costs) 24,940 2,181,428 - - - - 2,206,368
--------- ------------- ------------ ---------- ------------- ------------ -------------
As at 31 December
2022 159,367 10,821,023 2,396,396 398,954 (10,642,334) 50 3,133,456
========= ============= ============ ========== ============= ============ =============
Notes to the financial statements
1. Description of business, basis of preparation and going concern
GENERAL INFORMATION
Silver Bullet Data Services Group PLC ("SBDS") was incorporated
on 13 May 2013. SBDS is a public limited company incorporated in
England and Wales and domiciled in the UK. The address of the
registered office is The Harley Building, 77 New Cavendish Street,
London, England, W1W 6XB .
SBDS is the ultimate parent company to the subsidiaries listed
at Note 15, together referred to as "the Group". The principal
activity of the SBDS Group is marketing services through the
application of big data technologies to reduce friction.
Silver Bullet Data Services Group PLC is registered with
Companies House (Company Number: 08525481).
BASIS OF PREPARATION
These financial statements have been prepared in accordance with
UK-adopted International Accounting Standards, interpretations
issued by the International Financial Reporting Standards
Interpretations Committee ("IFRIC"), and the Companies Act 2006.
The accounting policies have been applied consistently throughout
the period.
The Company has taken advantage of the exemption under S408 of
the Companies Act 2006 not to include a separate Statement of
Comprehensive Income as group statements have been prepared.
The consolidated financial statements have been prepared under
the historical cost convention. Historical cost is generally based
on the fair value of the consideration given in exchange for
assets.
The presentational currency of the Group is GBP with functional
currencies of the subsidiaries disclosed at Note 15 being GBP, EUR,
AUD, and USD.
GOING CONCERN
The directors have prepared detailed budgets and forecasts
covering the period to 31 December 2025 which are based on the
strategic business plan. These take into account all reasonably
foreseeable circumstances and include consideration of trading
results, cash flows and the level of facilities the group requires
on a month-by-month basis.
Whilst the directors have plans in place to manage any
reasonably foreseeable circumstances, there may be the need for
additional funding in the short-term. The directors are confident
that the Group will be able to raise any required funds to meet
their strategic objectives however there remains uncertainty over
how much funding may be raised when required.
Based on their enquiries and the information available to them
and taking into account the other risks and uncertainties set out
herein, the directors have a reasonable expectation that the
company and the group has adequate resources to continue operating
for the foreseeable future. Thus, they continue to adopt the going
concern basis of accounting in preparing this financial
information.
2. Significant accounting policies
REVENUE RECOGNITION
IFRS 15 - Revenue from Contracts with Customers has been applied
for all periods presented within the financial statements. The
timing of all revenue recognised by the Group during the reporting
period was satisfied over time in accordance with IFRS 15
recognition criteria. None of the Group's activities result in the
transfer of control of a product at a point in time for revenue
recognition purposes.
During the period under review the Group recognised revenue from
the following activities:
Customer Experience Services
Revenue relating to service contracts is invoiced according to
milestones defined within each contract, the terms of which vary on
a case-by-case basis. In all cases the revenue is recognised in
line with the provision of the services or, where the quantum and
timing of the services cannot be reliably predicted, rateable over
the period of the agreement.
Invoices against services contracts are raised on a monthly
basis with adjustments for accrued or deferred income where the
agreed invoicing timescale does not match the valuation of
provision of services.
4D contextual targeting and insights platform
Amounts received or receivable for campaigns, typically invoiced
on a monthly basis, recognise revenue in proportion to the quantum
of advertising units delivered according to the contracted service.
Units and metrics deliverable under each contracted services will
vary on a case-by-case basis.
Contract liabilities
Contract liabilities are recognised when payment from a customer
is received in advance of performance obligations being satisfied.
Contract liabilities are recognised in trade and other
payables.
BUSINESS COMBINATIONS
Silver Bullet Data Services Group PLC applies the acquisition
method of accounting to account for business combinations in
accordance with IFRS 3, 'Business Combinations'.
The consideration transferred for the acquisition of a
subsidiary is the fair values of the assets transferred, the
liabilities incurred, and the equity interests issued by Silver
Bullet Data Services Group PLC. The consideration transferred
includes the fair value of any asset or liability resulting from a
contingent consideration arrangement. Identifiable assets acquired
and liabilities and contingent liabilities assumed in a business
combination are measured initially at their fair values at the
acquisition date. The excess of the consideration transferred over
the fair value of Silver Bullet Data Services Group PLC's share of
the identifiable net assets acquired is recorded as goodwill. All
transaction-related costs are expensed in the period they are
incurred as exceptional operating expenses.
TAXES
Corporation tax, where payable, is provided on taxable profits
at the current rate.
Deferred tax is provided on all temporary differences at the
reporting date between the tax bases of assets and liabilities and
their carrying amounts for financial reporting purposes.
Deferred tax assets are recognised for all deductible temporary
differences, carry-forward of unused tax assets and unused tax
losses, to the extent that it is probable that taxable profit will
be available against which the deductible temporary differences,
and the carry-forward of unused tax assets and unused tax losses
can be utilised. The carrying amount of deferred tax assets is
reviewed at each reporting date and reduced to the extent that it
is no longer probable that sufficient taxable profit will be
available to allow all or part of the deferred tax asset to be
utilised.
Deferred tax assets and liabilities are offset when there is a
legally enforceable right to offset current tax assets against
current tax liabilities, and when the deferred tax assets and
liabilities relate to taxes levied by the same taxation authority
on either the taxable entity or different taxable entities where
there is an intention to settle the balances on a net basis.
Deferred tax assets and liabilities are measured at the tax
rates that are expected to apply to the year when the asset is
realised or the liability is settled, based on tax rates (and tax
laws) that have been enacted or substantively enacted at the
reporting date.
FOREIGN CURRENCY TRANSLATION
Transactions in currencies other than the functional currency
(foreign currencies) are initially recorded at the exchange rate
prevailing on the date of the transaction.
Monetary assets and liabilities denominated in foreign
currencies are translated at the rate of exchange ruling at the
reporting date. Non-monetary assets and liabilities denominated in
foreign currencies are translated at the rate ruling at the date of
the transaction, or, if the asset or liability is measured at fair
value, the rate when that fair value was determined.
All translation differences are taken to profit or loss, except
to the extent that they relate to gains or losses on non-monetary
items recognised in other comprehensive income, when the related
translation gain or loss is also recognised in other comprehensive
income.
Subsidiaries using a functional currency other than the
presentation currency of the group are retranslated at each period
end. Any translation differences are held within the group foreign
exchange reserve.
INTANGIBLE ASSETS AND GOODWILL
Goodwill
Goodwill is initially measured as the excess of the aggregate of
the consideration transferred over the fair value of the net assets
acquired, and any previous interest held over the net identifiable
assets acquired and liabilities assumed. After initial recognition,
goodwill is measured at cost less any accumulated impairment
losses. The goodwill is tested annually for impairment irrespective
of whether there is an indication of impairment.
For the purposes of impairment testing, goodwill is allocated to
the cash-generating units expected to benefit from the acquisition.
Cash-generating units to which goodwill has been allocated are
tested for impairment at least annually, or more frequently when
there is an indication that the unit may be impaired. If the
recoverable amount of the cash-generating unit is less than the
carrying amount of the unit, the impairment loss is allocated first
to reduce the carrying amount of any goodwill allocated to the unit
and then to the other assets of the unit pro-rata on the basis of
the carrying amount of each asset in the unit.
Intangible assets (other than goodwill)
Intangible assets acquired separately from a business are
recognised at cost and are subsequently measured at cost less
accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised
separately from goodwill at the acquisition date if the fair value
can be measured reliably.
Amortisation is recognised so as to write off the cost or
valuation of assets less their residual values over their useful
lives on the following bases:
Development costs - Straight line basis over 5 years
Customer lists - Straight line basis over 4 years
PROPERTY PLANT AND EQUIPMENT
Property, plant and equipment are stated at cost net of
accumulated depreciation and accumulated impairment losses. Cost
comprises purchase cost together with any incidental costs of
acquisition.
Depreciation is provided to write down the cost less the
estimated residual value of all tangible fixed assets by equal
instalments over their estimated useful economic lives on a
straight-line basis. The following rates are applied:
Computer equipment - Straight line over 3 years
Fixtures, fittings - Reducing balance over 4 years
and equipment
IMPAIRMENT OF NON-CURRENT ASSETS
At each reporting period end date, the Group reviews the
carrying amounts of its tangible and intangible assets to determine
whether there is any indication that those assets have suffered an
impairment loss. If any such indication exists, the recoverable
amount of the asset is estimated in order to determine the extent
of the impairment loss (if any). Where it is not possible to
estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to
which the asset belongs.
Recoverable amount is the higher of fair value less costs to
sell and value in use. In assessing value in use, the estimated
future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of
the time value of money and the risks specific to the asset for
which the estimates of future cash flows have not been
adjusted.
If the recoverable amount of an asset is estimated to be less
than its carrying amount, the carrying amount of the asset is
reduced to its recoverable amount. An impairment loss is recognised
immediately in the statement of comprehensive income.
Recognised impairment losses are reversed if, and only if, the
reasons for the impairment loss have ceased to apply. Where an
impairment loss subsequently reverses, the carrying amount of the
asset (or cash-generating unit) is increased to the revised
estimate of its recoverable amount, but so that the increased
carrying amount does not exceed the carrying amount that would have
been determined had no impairment loss been recognised for the
asset (or cash-generating unit) in prior years. A reversal of an
impairment loss is recognised immediately in profit or loss.
RESEARCH AND DEVELOPMENT EXPITURE
Research expenditure is written off against profits in the year
in which it is incurred. Identifiable development expenditure is
capitalised to the extent that the technical, commercial and
financial feasibility can be demonstrated.
Development costs relate to the 4D Platform developed internally
by the group which are expected to generate future revenue
streams.
FINANCIAL INSTRUMENTS
Silver Bullet Data Services Group PLC classifies financial
instruments, or their component parts, on initial recognition as a
financial asset, a financial liability or an equity instrument in
accordance with the substance of the contractual arrangement.
Financial instruments are recognised on the date when the Group
becomes a party to the contractual provisions of the instrument.
Financial instruments are recognised initially at fair value plus,
in the case of a financial instrument not a fair value through
profit and loss, transaction costs that are directly attributable
to the acquisition or issue of the financial instrument. Financial
instruments are derecognised on the settlement date when the Group
is no longer a party to the contractual provisions of the
instrument.
Non-derivative financial instruments comprise trade and other
receivables, cash and cash equivalents, loans and borrowings, and
trade and other payables.
Trade and other receivables and trade and other payables
Trade and other receivables are recognised initially at
transaction price less attributable transaction costs. Trade and
other payables are recognised initially at transaction price plus
attributable transaction costs. Subsequent to initial recognition
they are measured at amortised cost using the effective interest
method, less any expected credit losses in the case of trade
receivables. Impairments of the trade receivable balances are based
on a review of individual receivable balances, their ageing and
management's assessment of realisation.
If the arrangement constitutes a financing transaction, for
example if payment is deferred beyond normal business terms, then
it is measured at the present value of future payments discounted
at a market rate of interest for a similar debt instrument.
Contract assets
Contract assets are recognised when revenue is recognised but
payment is conditional on a basis other than the passage of time.
Contract assets are included in trade and other receivables.
Interest-bearing borrowings
Interest-bearing borrowings are recognised initially at the
present value of future payments discounted at a market rate of
interest. Subsequent to initial recognition, interest-bearing
borrowings are stated at amortised costs using the effective
interest method.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call
deposits. Bank overdrafts that are repayable on demand form an
integral part of the Group's cash management and are included as a
component of cash and cash equivalents for the purpose only on the
cash flow statement.
PROVISIONS
A provision is recognised in the statement of financial position
when the Group has a present legal or constructive obligation as a
result of a past event, that can be reliably measured, and it is
probable that an outflow of economic benefits will be required to
settle the obligation. Provisions are determined by discounting the
expected future cash flows at a pre-tax rate that reflects risks
specific to the liability. Where the effect of the time value of
money is material, the amount expected to be required to settle the
obligation is recognised at present value. When a provision is
measured at present value, the unwinding of the discount is
recognised as a finance cost in profit or loss in the period in
which it arises.
EMPLOYEE BENEFITS
During the period the Group operated a defined contribution
money purchase pension scheme under which it pays contributions
based upon a percentage of the members' basic salary. The Group
also paid other employee benefits including medical insurance.
All employee benefits are charged to the Statement of
Comprehensive Income and differences between contributions payable
in the year and contributions actually paid are shown as either
accruals or prepayments.
LEASES
The Group leases a number of properties in various locations in
Europe, Australia, USA, and the UK from which it operates.
All leases are accounted for by recognising a right-of-use asset
and a lease liability except for:
- Leases of assets below GBP1,000; and
- Leases with a duration of twelve months or less.
All leases signed by the Group during the reporting period were
for a period of less than twelve months, so no right-of-use assets
have been recognised.
GRANT INCOME
Grant income is recognised where there is reasonable assurance
that the grant will be received, and all attached conditions will
be complied with. When the grant relates to an expense item, it is
recognised as income on a systematic basis over the periods that
the related costs, for which it is intended to compensate, are
expensed. When the grant relates to an asset, it is recognised as
income in equal amounts over the expected useful life of the
related asset.
SHARE-BASED PAYMENTS
The Group operates a share option programme which allows
employees of the subsidiary companies to be granted options to
purchase shares in this company. The fair value of options granted
is recognised as an employment expense with a corresponding
increase in equity.
The fair value of the options is measured at the grant date and
spread over the vesting period. The fair value is measured based on
an option pricing model taking into account the terms and
conditions upon which the instruments were granted.
Vesting periods in each share option agreement vary from vesting
immediately on grant date to vesting over a period of four
years.
EXCEPTIONAL ITEMS
Where items of income and expense included in the statement of
comprehensive income are considered to be material and exceptional
in nature, separate disclosure of their nature and amount is
provided in the financial statements. These items are classified as
exceptional items. The Group considers the size and nature of an
item both individually and when aggregated with similar items when
considering whether it is material, for example impairment of
intangible assets or restructuring costs.
FINANCE INCOME AND EXPENSES
Finance expenses comprise interest payable and leases
liabilities recognised in the statement of comprehensive income
using the effective interest method and unwinding of the discount
on provisions.
Interest income and interest payable are recognised in the
statement of comprehensive income as they accrue, using the
effective interest method.
ADOPTION OF NEW AND REVISED STANDARDS
The following standards and interpretations relevant to the
Group are in issue but are not yet effective and have not been
applied in the financial statements. In some cases, these standards
and guidance have not been endorsed for use in the United
Kingdom.
-- IAS 1 Presentation of liabilities as current or non-current
-- IAS 1 Disclosure of accounting policies
-- IAS 8 definition of accounting estimates
The above standards are not expected to materially impact the
Group.
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of these financial statements requires the
Directors to make estimates and judgements that affect the reported
amounts of assets, liabilities, costs and revenue in the financial
statements. Actual results could differ from these estimates. The
judgements, estimates and associated assumptions are based on
historical experience and other factors that are considered to be
relevant.
Key sources of estimation uncertainty that could cause an
adjustment to be required to the carrying amount of assets or
liabilities within the next accounting period are:
Critical accounting estimates:
Amortisation
The assessment of the useful economic lives, residual values and
the method of depreciating or amortising intangible (excluding
goodwill) fixed assets requires judgement. Amortisation is charged
to profit, or loss based on the useful economic life selected,
which requires an estimation of the period and profile over which
the group expects to consume the future economic benefits embodied
in the assets. Useful economic lives and residual values are
re-assessed, and amended as necessary, when changes in their
circumstances are identified.
Capitalised development costs
Development costs incurred in building the Group's key platform
for future expansion have been capitalised in accordance with the
requirements of IAS38. The majority of these costs consist of
salary expenses to which an estimated proportion of development
time has been applied.
Impairment of intangible fixed assets
Impairment tests have been undertaken in respect of goodwill and
intangible fixed assets using an assessment of the value in use of
the respective cash generating units (CGUs). This assessment
requires a number of assumptions and estimates to be made including
the allocation of assets of CGUs, the expected future cash flows
from each CGU and also the selection of a suitable discount rate in
order to calculate the present value of those cash flows.
Impairments of intangible assets are explained in more detail at
note 12.
Impairment of trade receivables
The Group's policy on recognising an impairment of the trade
receivables balance is based on a review of individual receivable
balances, their ageing and management's assessment of realisation.
This review and assessment is conducted on a continuing basis and
any material change in management's assessment of trade receivable
impairment is reflected in the carrying value of the asset.
Critical accounting judgements:
Going concern
As discussed more fully in the Directors' Report these financial
statements have been prepared on the going concern basis. This
treatment is based on management's judgement that cashflow
requirements for the continued development can be achieved through
operating activities and through additional fundraising if
required.
3. Operating segments
IFRS 8 requires that operating segments be identified on the
basis of internal reporting and decision-making. The Board of
Directors is the chief operating decision maker for the Group.
The Group has two key business segments outlined below. The
business analyses these streams by revenue and gross margin.
Overheads, assets and liabilities are not separately allocated
across the business streams.
The business monitors operating segment profitability using
their Earnings (or Profit) Before Interest, Tax, Depreciation and
Amortisation (EBITDA). This is used as a metric to represent
operating cashflow generated by the business.
2022 2021
Revenue Gross Revenue Gross
profit profit
GBP GBP GBP GBP
Customer Experience
Services 4,302,431 4,011,972 3,602,505 2,895,650
4D Platform 1,515,824 207,310 206,750 (110,616)
Total 5,818,255 4,219,282 3,809,255 2,785,034
---------- ------------ ---------- ------------
EBITDA from continuing
operations
Operating (loss) (7,348,222) (8,548,904)
Depreciation and amortisation 790,274 512,064
Total (6,557,948) (8,036,840)
============ ============
4. Geographical analysis
Revenue analysed by geographical market:
2022 2021
GBP GBP
United Kingdom 1,066,801 1,078,128
Rest of Europe 1,553,243 1,901,162
Rest of the world 3,198,211 829,965
5,818,255 3,809,255
========== ==========
The timing of all revenue recognised by the Group during the
reporting period was satisfied over time in accordance with IFRS 15
recognition criteria. None of the Group's activities result in the
transfer of control of a product at a point in time for revenue
recognition purposes.
Two major customers are included within revenue totalling
GBP1,512,875, each representing 13% of total group revenue (2021:
one major customer totalling GBP497,717, being 13%).
Non-current assets analysed by geographical market:
2022 2021
GBP GBP
United Kingdom 6,934,199 6,586,473
Rest of Europe 4,506 4,104
Rest of the world 14,504 7,942
6,953,209 6,598,519
========== ==========
5. Other operating income
Group
2022 2021
GBP GBP
Grant income - 38,328
- 38,328
===== =======
6. Exceptional items
Group
2022 2021
GBP GBP
Professional fees on initial public
offering - 520,180
Losses incurred / (recovered)
as a result of fraud (42,154) 340,905
(42,154) 861,085
========= ========
Reported loss before tax for the group is reconciled to the
headline loss before tax as follows:
Group
2022 2021
GBP GBP
Reported (loss) before tax (7,536,773) (8,567,832)
Share option charges 1,476,183 1,602,025
Professional fees on initial public
offering - 520,180
Losses incurred / (recovered)
as a result of fraud (42,154) 340,905
Headline (loss) before tax (6,102,744) (6,104,722)
============ ============
7. Operating (loss)
The operating loss is arrived at after charging/(crediting):
Group
2022 2021
GBP GBP
Depreciation of property plant
and equipment 29,209 36,255
Amortisation of intangible assets 761,065 475,809
Short-term leases 237,388 214,972
Foreign exchange losses 24,334 80,005
Auditor's remuneration in respect
of:
- audit of the consolidated financial
statements 72,000 60,000
- other audit related assurance
services 5,000 193,750
-------- --------
8. Staff costs
Group
2022 2021
GBP GBP
Wages and salaries 5,859,808 4,523,434
Share-based payments 1,211,252 1,602,025
Social security costs 786,795 715,282
Pension costs - defined
contribution 215,546 129,079
Termination payments 19,598 56,272
8,092,999 7,026,092
========== ==========
Average number of staff
Group Company
2022 2021 2022 2021
Customer Experience Services 36 34 - -
4D Platform 32 23 - -
Central 12 12 - -
80 69 - -
===== ===== ===== =====
9. Directors' remuneration
Key management personnel are considered to be the directors and
their remuneration, employer's national insurance, and pension
contributions are disclosed below:
Group
2022 2021
GBP GBP
Directors' remuneration 763,237 957,855
Share-based payments 446,077 376,994
Social security costs 79,133 97,494
Pension costs - defined
contribution 20,526 19,589
Invoiced services 17,920 71,650
1,326,893 1,523,582
========== ==========
The directors are remunerated, in respect of their services to
the Group, through subsidiary companies. During the year three
directors (2021: four) were accruing benefits under the company
defined contribution pension scheme.
Remuneration disclosed above includes the following amounts paid
to the highest paid director:
Group
2022 2021
GBP GBP
Directors' remuneration 225,000 273,375
Share-based payments 148,894 104,901
Social security costs 29,744 36,507
Pension costs - defined
contribution 6,750 5,438
Invoiced services - 30,000
======== ========
10. Finance expenses
Group
2022 2021
GBP GBP
On convertible loan notes 166,651 -
On bank overdrafts and loans 21,900 16,926
On other credit arrangements - 2,002
188,551 18,928
======== =======
11. Income tax provision
A deferred tax asset in respect of the Group's losses to date
has not been recognised due to the uncertainty of the timing of
future loss relief.
Group
2022 2021
Current tax GBP GBP
UK corporation tax credits for R&D
from prior years (41,009) (21,121)
UK corporation tax credits for R&D
for current year (360,000) (360,000)
Foreign taxation 1,971 -
Total current tax (399,038) (381,121)
========== ==========
Deferred tax 84,298 323,971
Total tax credit (314,740) (57,150)
========== ==========
Reconciliation of tax expense
The tax assessed on the loss on ordinary activities for the year
is lower than the standard rate of corporation tax in the UK of 19%
(2021: 19%).
Group
2022 2021
GBP GBP
Loss on ordinary activities before
taxation (7,512,440) (8,567,832)
============ ============
Loss on ordinary activities by
rate of tax (1,427,364) (1,627,888)
Non-allowable expenses 150,152 139,632
Enhanced R&D expenditure (360,000) (360,000)
Change in deferred tax rate applied - 131,494
Deferred tax movement on intangible
assets 84,298 323,971
Movement in deferred tax not recognised 1,277,212 1,356,762
Adjustments in respect of prior
periods (41,009) (21,121)
Foreign taxation 1,971 -
Tax on loss (314,740) (57,150)
============ ============
Deferred tax assets have not been recognised on cumulative
losses for the group totalling GBP40,012,779 (2021:
34,655,101).
12. Goodwill and intangible assets
Customer Development Goodwill Total
lists Costs
GBP GBP GBP GBP
COST
At 1 January 2021 595,708 1,058,170 4,330,222 5,984,100
Additions - 1,439,834 19,440 1,459,274
At 31 December
2021 595,708 2,498,004 4,349,662 7,443,374
--------- ------------ ---------- ----------
At 1 January 2022 595,708 2,498,004 4,349,662 7,443,374
Additions - 1,099,062 - 1,099,062
At 31 December
2022 595,708 3,597,066 4,349,662 8,542,436
--------- ------------ ---------- ----------
AMORTISATION
At 1 January 2021 213,863 197,298 - 411,161
Amortisation charge 148,927 326,882 - 475,809
Write off - - - -
At 31 December
2021 362,790 524,180 - 886,970
--------- ------------ ---------- ----------
At 1 January 2022 362,790 524,180 - 886,970
Amortisation charge 148,927 612,138 - 761,065
At 31 December
2022 511,717 1,136,318 - 1,648,035
--------- ------------ ---------- ----------
NET BOOK VALUE
At 31 December 2021 232,918 1,973,824 4,349,662 6,556,404
========= ============ ========== ==========
At 31 December 2022 83,991 2,460,748 4,349,662 6,894,401
========= ============ ========== ==========
Amortisation is charged within administrative expenses in the
Statement of Comprehensive Income.
13. Investments
All investments held by the group relate to investments in
trading companies as detailed in Note 15.
COST Group Company
At 1 January 2021 - 5,270,836
Additions - 1,602,075
At 31 December 2021 - 6,872,911
------ ----------
At 1 January 2022 - 6,872,911
Additions 4,999 1,481,183
At 31 December 2022 4,999 8,354,094
------ ----------
14. Tangible assets
Fixtures, Computer Total
fittings equipment
and equipment
GBP GBP GBP
COST
At 1 January 2021 13,672 103,065 116,737
Additions 1,770 39,660 41,430
Disposals (7,145) - (7,145)
At 31 December 2021 8,297 142,725 151,022
---------------- ------------ --------
At 1 January 2022 8,297 142,725 151,022
Additions 11,814 29,089 40,903
Disposals - - -
At 31 December 2022 20,111 171,814 191,925
---------------- ------------ --------
DEPRECIATION
At 1 January 2021 10,684 69,113 79,797
Charge for the period 1,434 34,821 36,255
Disposals (7,145) - (7,145)
At 31 December 2021 4,973 103,934 108,907
---------------- ------------ --------
At 1 January 2022 4,973 103,934 108,907
Charge for the period 4,237 24,972 29,209
Disposals - - -
At 31 December 2022 9,210 128,906 138,116
---------------- ------------ --------
NET BOOK VALUE
At 31 December 2021 3,324 38,791 42,115
================ ============ ========
At 31 December 2022 10,901 42,908 53,809
================ ============ ========
Depreciation is charged to administrative expenses within the
Statement of Comprehensive Income.
15. Investments in subsidiaries
As at 31 December 2022 Silver Bullet Data Services Group PLC
owned an interest in the ordinary share capital of the companies
below.
All companies are 100% owned with the exceptions of joint
ventures Local Planet Data Services Ltd (51% owned) and Silver
Bullet Data Science Limited (49.99% owned).
Silver Bullet Data Science Limited has not been consolidated
into these financial statements as the Group does not exercise
control over the company's activities.
Subsidiary undertaking Country of Registered office Principal activity
incorporation
----------------------- --------------- ------------------------ -----------------------
Silver Bullet Media England and The Harley Building, Marketing services
Services Limited Wales 77 New Cavendish and data technologies
Street, London,
W1W 6XB
IOTEC Native Limited England and The Harley Building, Dormant
Wales 77 New Cavendish
Street, London,
W1W 6XB
Silver Bullet Data England and The Harley Building, Marketing services
Services Limited Wales 77 New Cavendish and data technologies
Street, London,
W1W 6XB
Silver Bullet Data Germany Herzogspitalstraße Marketing services
Services GmbH 24, 80331, Munich and data technologies
Silver Bullet Data Australia 452 Flinders St, Marketing services
Services Pty Ltd Melbourne, 3000, and data technologies
Victoria
Silver Bullet Data Italy 20161, Via Gian Marketing services
Services S.r.l Rinaldo, Carli n. and data technologies
47, Milan
Technobeet S.r.l. Italy 20161, Via Gian Dormant
Rinaldo, Carli n.
47, Milan
Silver Bullet USA United States 1250 Broadway, 36th Marketing services
Inc. of America Floor, New York, and data technologies
New York, 10001
Local Planet Data England and The Harley Building, Marketing services
Services Ltd Wales 77 New Cavendish and data technologies
Street, London,
W1W 6XB
16. Trade and other receivables
Group Company
2022 2021 2022 2021
GBP GBP GBP GBP
Trade receivables 1,307,790 1,333,272 - -
Other receivables 448,798 202,623 227,439 75,965
Prepayments 225,537 151,749 58,135 2,557
Contract assets 170,855 217,328 - -
Corporation tax receivable 334,864 360,000 - -
2,487,844 2,264,972 285,574 78,522
========== ========== ======== =======
In determining the recoverability of accounts receivable, the
Group considers any changes in the credit quality of the accounts
receivable from the date credit was initially granted up to the
reporting date.
Those receivable balances that are passed due have been assessed
by management on an individual basis and provisions for bad debts
has been made as necessary.
Contract assets represent agreements with customers against
which revenue has been recognised but not yet invoiced in
accordance with the contract terms. All accrued revenue at each
period end has been invoiced within a maximum of three months of
the reporting period.
17. Cash and cash equivalents
Group Company
2022 2021 2022 2021
GBP GBP GBP GBP
Cash at bank 1,352,221 3,687,809 8,572 60
1,352,221 3,687,809 8,572 60
========== ========== ====== =====
Cash at bank earns interest at floating rates based on daily
bank deposit rates.
18. Trade and other payables
Group Company
2022 2021 2022 2021
GBP GBP GBP GBP
Trade payables 530,257 525,267 34,448 35,129
Tax and social security 497,631 558,799 20,613 20,613
Other payables 345,496 317,018 5,050 50
Accruals 647,382 1,007,845 4,609 10,467
Contract liabilities 290,988 200,099 - -
Amounts owed to group undertakings - - 3,762,367 1,983,003
2,311,754 2,609,028 3,827,087 2,049,262
========== ========== ========== ==========
The fair value of trade and other payables approximates to book
value at each year-end. Trade payables are non-interest bearing and
are normally settled monthly.
Contract liabilities represent agreements with customers against
which revenue has not yet been recognised for invoices raised
during the report period. All such deferred revenue at each period
end has been released to the Statement of Comprehensive Income
within a maximum of three months of the reporting period.
19. Loans and borrowings
Group Company
2022 2021 2022 2021
GBP GBP GBP GBP
Current liabilities
Bank loans 41,227 16,061 - -
41,227 16,061 - -
========== ======== ========== =====
2022 2021 2022 2021
GBP GBP GBP GBP
Non-current liabilities
Convertible loan notes 1,687,697 - 1,687,697 -
Bank loans 110,295 143,644 - -
1,797,992 143,644 1,687,697 -
========== ======== ========== =====
As at 31 December 2022 the Group had bank loans of GBP151,522
(2021: GBP177,104) accruing interest at 1.95% repayable over six
years to 2026, with repayments due from 31(st) August 2022.
Convertible loan notes were issued during the reporting period
which are convertible into new ordinary shares at the price of
GBP1.10 per new ordinary share at any point during the three-year
term of the loan.
The loan notes attract interest at a rate of 12% per annum,
which is payable commencing on the date of issue either:
i) at the Company's option of 8% per annum paid monthly plus 4%
payable via the issue of additional Convertible Loan Notes as
payment in kind.
ii) 12% payable via the issue of additional Convertible Loan Notes as payment in kind.
The loan notes may be redeemed in cash at the option of company
at any point at a premium equal to 15% of the principal amount of
the Notes.
The equity element of the convertible loan note is recognised
within other reserves (see Note 24). A market interest rate of 21%
has been applied to calculate the residual equity value of the
financial instrument.
20. Deferred tax liability
Group Company
2022 2021 2022 2021
GBP GBP GBP GBP
Movements in the year:
Liability brought forward 547,892 223,921 - -
Charge to profit or loss 84,298 323,971 - -
Liability carried forward 632,190 547,892 - -
======== ======== ===== =====
All deferred tax liabilities are recognised in respect of
intangible and tangible asset timing differences. No deferred tax
assets have been recognised by the Group.
21. FINANCIAL INSTRUMENTS
Financial instruments and risk management
The Group's financial instruments may be analysed as
follows:
Group Company
2022 2021 2022 2021
GBP GBP GBP GBP
Financial assets measured
at amortised cost
Cash and cash equivalents 1,352,221 3,687,809 8,571 60
Trade receivables 1,307,790 1,333,272 - -
Other receivables 448,798 202,623 227,439 75,965
---------- ---------- ---------- ----------
3,108,809 5,223,704 236,010 76,025
========== ========== ========== ==========
Financial liabilities
measured at amortised
cost
Trade payables 530,257 525,267 34,448 35,129
Accruals 647,382 1,007,845 4,610 10,468
Other payables 345,496 875,812 3,767,417 2,014,133
Loans 1,839,219 159,705 1,687,697 -
3,362,354 2,568,629 5,494,172 2,059,729
========== ========== ========== ==========
Financial assets measured at amortised cost comprise cash, trade
receivables and other receivables.
Financial liabilities measured at amortised cost comprise bank
loans and overdrafts, other loans, trade payables, convertible loan
notes and other payables.
The debt instruments were initially recognised at fair value,
and subsequently they were measured at amortised cost using the
effective interest rate method, whereby the fair value of the debt
approximates their carrying value.
The Group is exposed to a variety of financial risks through its
use of financial instruments which result from its operating
activities. All of the Group's financial instruments are classified
as loans and receivables.
The Group does not actively engage in the trading of financial
assets for speculative purposes. The most significant financial
risks to which the Group is exposed are described below:
Credit risk
Generally, the Group's maximum exposure to credit risk is
limited to the carrying amount of the financial assets recognised
at the reporting date, as summarised above.
Credit default risk is the financial risk to the Group if a
counter party to a financial instrument fails to meet its
contractual obligation. The nature of the Group's receivable
balances, the time taken for payment by entities and the associated
credit risk are dependent on the type of engagement.
Credit risk is minimised substantially by ensuring the credit
worthiness of the entities with which it carries on business.
Credit terms are provided on a case-by-case basis. The Group's
trade and other receivables are actively monitored. The Group has
not experienced any significant instances of non-payment from its
customers.
Unbilled revenue is recognised by the Group only when all
conditions for revenue recognition have been met in line with IFRS
15.
Liquidity risk
Liquidity risk represents the contingency that the Group is
unable to gather the funds required with respect to its financial
obligations at the appropriate time and under reasonable conditions
in order to meet their current obligations. The Group attempts to
manage this risk so as to ensure that it has sufficient liquidity
at all times to be able to honour its current and future financial
obligations under normal conditions and in exceptional
circumstances. Financing strategies to ensure the management of
this risk include the issuance of equity or debt securities as
deemed necessary.
All of the Group's financial liabilities mature within twelve
months of both reporting periods, with the exception of non-current
liabilities disclosed at note 19. In each of these cases, the
financial liabilities matured within five years of the reporting
date.
Foreign currency risk
The Group operates internationally and is exposed to foreign
exchange risk arising from various currency exposures, primarily
Australian Dollars, United States Dollars and Euros. The Group
monitors exchange rate movements closely and ensures adequate funds
are maintained in appropriate currencies to meet known
liabilities.
The Group's exposure to foreign currency risk at the end of the
respective reporting periods were as follows:
2022 2021
AUD USD EUR AUD USD EUR
Assets and
liabilities 299,236 244,995 (515,938) 121,403 128,932 302,200
Assets and liabilities include the monetary assets and
liabilities of subsidiaries denominated in foreign currency.
The Group is exposed to foreign currency risk on the
relationship between its functional currencies and other currencies
in which the Group's material assets and liabilities are
denominated. The table below summaries the effect on reserves had
the functional currencies of the Group weakened or strengthened
against these other currencies, with all other variables held
constant.
Group Company
2022 2021 2022 2021
GBP GBP GBP GBP
10% weakening of functional
currency (7,876) 34,124 - -
======== ========= ===== =====
10% strengthening of functional
currency 16,539 (71,661) - -
======== ========= ===== =====
The impact of a change of 10% has been selected as this has been
considered reasonable given the current level of exchange rates and
the volatility observed both on a historical basis and market
expectations for future movements.
22. Share capital and premium
Ordinary share
capital
Issued and fully
paid No. GBP
As at 1 Jan 2022 13,422,687 134,227
Shares issued 2,514,000 25,140
As at 31 Dec 2022 15,936,687 159,367
=========== ========
In June 2022 investment funding was raised for 2,494,000 new
shares issued at GBP1.00. At the reporting date deferred share
subscriptions were outstanding of GBP142,720 (2021: GBPnil) and are
held within other receivables. 20,000 share options were also
exercised during the financial year at nominal value of
GBP0.01.
23. Share Option Reserve
The Group operates a programme for employees of its subsidiaries
to acquire shares in the company under an EMI scheme. All options
are settled by the physical delivery of shares once the options
have vested and are exercised.
The number and weighted average exercise price of share options
during the year were as follows:
2022 2021
Weighted Share Weighted Share
average options average options
exercise exercise
price price
GBP No. GBP No.
Outstanding at start of
period 1.56 1,679,607 3.05 250,153
Forfeited/expired during
period 1.50 (198,987) (1.27) (244,767)
Granted during period 0.27 109,000 1.27 1,705,682
Exercised during period 0.01 (20,000) (0.30) (31,461)
Outstanding at end of
period 1.49 1,569,620 1.56 1,679,607
Share options have been valued at grant date based on the Black
Scholes valuation model using an estimated volatility of 40%.
Options vest over varying terms according to individual option
agreements from vesting in full on grant date to a period of three
years.
All options expire after seven years and an expected take-up
rate of 100% has been applied. A dividend yield of 0% has been
applied to option valuation models as the Group focuses on capital
growth through this period. Risk-free rates have been applied
ranging from 0.26% to 3.62% based on UK 10-year gilt rates since
2014.
Other key inputs applied to Black Scholes valuation models are
as follows:
Tranche date Options Share Average
outstanding price exercise
price
No. GBP GBP
01 October 2014 1,325 22.21 0.001
12 January 2015 94 22.21 0.001
15 July 2015 281 24.63 0.001
18 July 2016 2,703 24.63 9.837
12 October 2016 10,000 24.63 24.633
26 January 2018 9,099 8.55 15.462
21 May 2020 21,750 3.64 0.810
09 July 2020 625 3.64 0.810
17 July 2020 2,125 1.96 0.810
24 July 2020 5,000 1.96 0.810
01 October 2020 625 1.96 0.810
21 May 2020 751 1.96 0.810
21 May 2020 998 1.96 0.810
06 July 2020 4,360 1.96 0.810
02 June 2021 716,021 2.57 0.415
25 June 2021 689,863 2.57 2.286
11 August 2022 104,000 0.90 0.277
1,569,620
=============
The movement in option valuation during the year ended 31
December 2022 resulted in a staffing cost being recognised by the
Group of GBP1,476,183 (2021: GBP1,602,025), with a corresponding
increase in the Group's equity.
The valuation of options exercised, lapsed, and forfeited during
the year totalled GBP355,150 (2021: GBP1,519,315) which has been
transferred to Retained Earnings.
The contractual life for outstanding options runs for a number
of periods, the latest of which being to 11(th) August 2029.
The total number of exercisable options at the period end was
1,569,620 (2021: 1,679,607), with an average exercise price of
GBP1.49 (2021: GBP1.56).
24. Other reserves
2022 2021
GBP GBP
Convertible loan 398,954 -
notes
398,954 -
======== =====
Loan notes were issued during the reporting period which are
convertible into new ordinary shares at the price of GBP1.10 per
new ordinary share at any point during the three year term of the
loan.
The equity element of the convertible loan note is recognised
within other reserves. A market interest rate of 21% has been
applied to calculate the residual equity value of the financial
instrument.
25. Related party transactions
Key management personnel and directors' remuneration is detailed
at note 9.
Local Planet International Limited: is a related party to the
group by virtue of having Directors in common. Ian James, Martyn
Rattle and Nigel Sharrocks are directors of both companies.
Recharges for shared services totalling GBP146,293 (2021:
GBP107,131) are included in revenue for the year ended 31 December
2022. Amounts outstanding at the year-end included in trade
receivables totals GBP29,611 (2021: GBP37,758).
Recharges for direct costs incurred were processed during the
year ended 31 December 2022 totalling GBP114,009 (2021: GBP56,000).
Amounts outstanding at 31 December 2022 totalled GBP32,400 (2021:
GBP5,574).
Fluency Media Limited: is a related party to the group by virtue
of having Directors in common. Ian James is a director of both
companies. Consultancy services were provided during the year ended
31 December 2022 totalling GBPnil (2021: GBP90,000). All of these
services were provided prior to listing in June 2021 and were
settled by the reporting date.
Marmalade Consultants Limited: is a related party to the group
by virtue of having Directors in common. Martyn Rattle is a
director of both companies Consultancy services were provided
during the year ended 31 December 2022 totalling GBP17,920 (2021:
GBP56,673). Amounts outstanding at 31 December 2022 totalled GBPnil
(2021: GBPnil).
Educated Solutions Limited: is a related party to the group by
virtue of having Directors in common. Ian James and Martyn Rattle
are directors of both companies. Revenue was recognised for
services provided to the company during the year ended 31 December
2022 totalling GBPnil (2021: GBP13,800). Costs of GBP3,462 (2021:
GBPnil) were also recognised in respect of a profit share
agreement. Revenue outstanding at 31 December 2022 totalled GBPnil
(2021: GBP16,560) and are included within trade receivables.
Umberto Torrielli: A director of the Group company relocated to
the USA in order to establish a new presence in this territory in
2020. For this purpose, a loan was issued of GBP150,000 which is
held within other debtors at the end of the reporting period (2021:
GBP150,000).
Transactions with group companies
As holding company for the subsidiaries listed at Note 15, all
funds raised are distributed to subsidiary companies as required. A
summary of balances outstanding at the period end are provided
below. All balances are repayable on demand and are lent without
security or accruing any interest.
A provision for bad debts has been included in the Company
financial statements for all amounts receivable from subsidiaries
in both the current and previous year.
Amounts owed to subsidiary companies 2022 2021
GBP GBP
Silver Bullet Media Services Limited 2,960,236 1,180,872
Iotec Native Limited 802,131 802,131
3,762,367 1,983,003
================= =================
26. Earnings per share
Earnings per share (EPS) is calculated on the basis of profit
attributable to equity shareholders divided by the weighted average
number of shares in issue for the year. The diluted EPS is
calculated on the treasury stock method and the assumption that the
weighted average EMI share options outstanding during the period
are exercised.
2022 2021
GBP GBP
Loss after taxation (7,222,033) (8,510,682)
Number of shares
Weighted average number of ordinary
shares in issue 14,889,187 11,684,142
Dilutive effect of in-the-money
share options 589,590 792,028
Diluted weighted average number
of shares 15,478,777 12,476,170
Earnings per share
Basic earnings per share (0.49) (0.73)
Diluted earnings per share (0.49) (0.73)
As there is a loss for the year the options are antidilutive and
therefore the basic and the diluted EPS are the same.
27. Other financial commitments
The Company has provided a guarantee in respect of the
outstanding liabilities of the subsidiary companies listed below in
accordance with Sections 479A - 479C of the Companies Act 2006, as
these subsidiary companies of the Group are exempt from the
requirements of the Companies Act 2006 relating to the audit of the
accounts by virtue of Section 479A of this Act.
Silver Bullet Media Services Limited (06216702)
IOTEC Native Limited (08286180)
Silver Bullet Data Services Limited (10081847)
Local Planet Data Services Ltd (13123941)
Silver Bullet Data Science Limited (14086726)
28. Ultimate controlling party
Management considers there is no ultimate controlling part of
the Group.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 ("MAR") as it forms
part of United Kingdom domestic law by virtue of the European Union
(Withdrawal) Act 2018, as amended by virtue of the Market Abuse
(Amendment) (EU Exit) Regulations 2019.
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
FR WPUGAAUPWGBG
(END) Dow Jones Newswires
June 01, 2023 02:00 ET (06:00 GMT)
Silver Bullet Data Servi... (LSE:SBDS)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Silver Bullet Data Servi... (LSE:SBDS)
Gráfica de Acción Histórica
De May 2023 a May 2024
