TIDMSND
RNS Number : 1313N
Sondrel (Holdings) plc
21 September 2023
For immediate release 21 September 2023
Sondrel (Holdings) plc
("Sondrel", the "Company" and together with its subsidiaries the
"Group")
Results for the half year ended 30 June 2023
Strong financial and operational progress; positive medium-term
outlook
Sondrel (Holdings) plc (AIM:SND), the fabless semiconductor
business providing turnkey services in the design and delivery of
'application specific integrated circuits' ("ASICs") and 'system on
chips' ("SoCs") for leading global technology brands, is pleased to
announce its results for the half year to 30 June 2023 (the
'Period' or 'H1 2023').
Financial Highlights
-- Revenue up 17% to GBP9.3 million (H1 22: GBP8.0 million)
-- ASIC revenue growth of 50% YoY to GBP8.1 million,
representing 87% of total revenues (H1 22: GBP5.4m, 68%)
-- Adjusted EBITDA increased 33% to GBP0.4 million (H1 22: GBP0.3 million)
-- Loss Before Tax of GBP2.0 million (H1 22: GBP1.5 million)
-- Cash balance at period end GBP0.1 million (H1 22: GBP(0.7) million)
Operational Highlights
-- Strong growth in ASIC revenues with first ASIC devices
delivered to lead customers across high growth megatrend sectors
including AI, smartphones and home networks
-- Three ASIC chip designs taped out, delivering initial NRE
(non-recurring engineering) revenues
-- Good progress made on the Group's engagement for a Tier 1 OEM
Automotive customer with key milestones being achieved
-- Investment in US sales organisation, increasing the headcount
and opening an office in Santa Clara
-- Appointment of new sales partner in US
-- Signed multi-year partnership extension with Synopsys, the
American electronic design automation company, for its
state-of-the-art EDA tools
-- Additional software contract extension was also signed with
blue-chip technology giant, Siemens, in April 2023 for the
continued use of its Electronic Design Automation (EDA)
software
Post Period End Highlights
-- Appointment of industry veteran Anthony Fernandez as Chief Operating Officer
-- Appointment of Oliver Jones as Vice-President of Strategic Sales in US
-- Appointment of highly experienced Nick Stone as Interim Chief Financial Officer
-- Silicon prototypes delivered for three ASIC projects
Outlook
-- Continued momentum in the US with 15 potential customers in
the pipeline, representing substantial design and prototype
revenues over the next few years
-- The Board remains confident that the Company will deliver
performance in the FY23 full year in line with current market
expectations as revised on 31 August 2023
-- Notwithstanding H2 2023 delays and the consequential impact
on previously anticipated ramp up as we enter FY 2024, increasing
traction in the important US market, strong sales pipeline and
positive ongoing relationships with our existing ASIC customers
provides the Board with continued confidence in the Group's
medium-term targets.
Graham Curren, Chief Executive Officer of Sondrel,
commented:
"I am pleased with our performance in the first half,
notwithstanding increasingly challenging market conditions during
the period. Significant progress was achieved in key areas that
will grow our business in the medium term, namely the successful
tapeouts of three designs, progress with our Tier 1 OEM automotive
customer, real progress in the United States and increased customer
production forecasts for our live ASIC projects in Europe.
"Although the customer delays will moderate growth in the
near-term, we are focused on delivering in line with our growth
strategy and remain well positioned to meet our medium-term
objective of delivering revenues in excess of GBP100m per
annum."
Analyst presentation
There will be an in-person presentation for analysts at 9:30
a.m. (BST) today. If you would like to join, please contact
Buchanan at sondrel@buchanan.uk.com
This announcement contains inside information as stipulated
under the UK version of the Market Abuse Regulation No 596/2014
which is part of English Law by virtue of the European (Withdrawal)
Act 2018, as amended. On publication of this announcement via a
Regulatory Information Service, this information is considered to
be in the public domain.
- Ends -
FOR FURTHER ENQUIRIES:
Sondrel (Holdings) plc Via Buchanan
Graham Curren, CEO Tel: +44 (0) 20 7466
5000
Nick Stone, Interim CFO
Cavendish Securities plc Tel: +44 (0)20 7220
0500
Ben Jeynes / Katy Birkin / George Lawson
- Corporate Finance
Michael Johnson - Sales
Buchanan Communications Tel: +44 (0) 20 7466
5000
Chris Lane sondrel@buchanan.uk.com
Stephanie Whitmore
Jack Devoy
Abby Gilchrist
About Sondrel
Sondrel is a UK-based fabless semiconductor company specialising
in high end, complex digital Application Specific Integrated
Circuits (ASICs) and System on Chips (SoCs). It provides a full
turnkey service in the design, prototyping, testing, packaging and
production of ASICs and SoCs.
The Company is one of only a few companies capable of designing
and supplying the higher-spec chips built on the most advanced
semiconductor technologies, selling into a range of hyper growth
end markets such as high-performance computing, automotive,
artificial intelligence, VR/AR, video analytics, image processing,
mobile networking and data centres. Sondrel designs have enabled
products by leading technology brands including Apple (iPhone),
Sony (PlayStation), Meta's (Oculus), Samsung, Google and Sony
smartphones, JVC (prosumer camcorders), Tesla and Mercedes-Benz
cars.
Sondrel is well-established, with a 20-year track record of
successful delivery, supported by long standing ecosystem
partnerships including Arm, TSMC and Samsung. Headquartered in the
UK, Sondrel has a global presence with offices in UK, USA, China,
India and Morocco.
For more information please visit: ir.sondrel.com .
Chairman and CEO's Statement
Introduction and overview
The market conditions have become increasingly challenging for
the Company, as Sondrel has had to manage the combined impacts of
an unexpectedly long downturn in the semiconductor market, a
collapse in private equity and venture capital funding for
semiconductor companies, continuing geopolitical uncertainty, and
delays in customer investments. Despite these near-term challenges,
the fundamental strengths of the Group's business model remain
unchanged. We were pleased with Sondrel's performance in the first
half year of the year and to have made substantial progress in the
key areas which will grow our business in the medium term.
Whilst not having a substantial impact on the first half year
results, the Company has already announced that the challenges
mentioned above will impact our H2 2023 revenue, profitability and
cash position. Sondrel's flexible business model, and strong
supplier partnerships. are allowing us to take the decisions needed
to manage the situation as we continue to hit multiple key
milestones and ensure that we will be well positioned as we move
into 2024. The Board remains confident that the Company will
deliver performance in the FY23 full year in line with current
market expectations as revised on 31 August 2023.
Looking in more detail at H1 2023, the Group delivered ASIC
projects to plan and completed the second milestone of a material
ASIC engagement for a Tier 1 automotive customer, generating
milestone payments. As a result of this and other work, H1 2023
unaudited revenues rose to GBP9.3m, representing a 17% increase
from H1 2022, with an adjusted EBITDA of GBP0.4m during the period
(H1 2022: GBP0.1m) [1] .
Sondrel has made some excellent new appointments to the
management and silicon operations teams, we have established an
office in Santa Clara, California, in the heart of Silicon Valley,
and we have delivered our first ASIC devices to our lead customers
(who themselves are increasingly optimistic about their end market
production opportunities). In particular, our sales penetration
into the US is progressing well as we start to develop this large
market opportunity.
To support the Group's future growth in line with its capability
to fulfil new orders for its full-service ASIC offering of design
and supply, we announced the appointment of Anthony Fernandez as
Chief Operating Officer post period end in July 2023. Anthony has
joined us from Refeyn where he was CEO and, before that, was VP of
Asia Pacific for Teledyne Technologies, the US-based provider of
sophisticated digital imaging products and software,
instrumentation, aerospace and defence electronics, and engineered
systems.
The semiconductor market overall is now moving into recovery
with SEMI forecasting 10% quarter-on-quarter growth in Q3 2023. [2]
The ASIC segment that the Group operates in continues to grow as
customers seek competitive advantage by including customised ASIC
devices that enable differentiation of their end products while
managing unit costs and power consumption, and addressing fast
growth technology megatrends including AI, Automotive, 8k video,
Smart Home devices, Wearables and next gen. Consumer Devices.
Turnkey ASIC business model
Sondrel has successfully transitioned its business model to
provide a full turnkey ASIC design and supply service for its
customers. This includes contracting for the manufacture, testing
and production of ASICs as well as previously offered design and
production consulting. Although the testing, packaging, and other
capital-intensive engineering functions necessary for production of
an ASIC will continue to be outsourced to third parties, Sondrel
will provide the product engineering and manage the complex
manufacturing process by engaging third parties directly.
[1] Adjusted EBITDA is EBITDA before deduction of exceptional
items (see note 9 for reconciliation)
2
(https://www.semi.org/en/news-media-press-releases/semi-press-releases/global-semiconductor-industry-on-track-for-2024-recovery-but-near-term-headwinds-remain-semi-reports)
Clear progress has been made in the first half of 2023 with
three designs taping out in the period delivering the initial NRE
(non-recurring engineering) revenues. Previously, as the design is
complete at this stage, this is where Sondrel's engagement with the
customer would have ended, but the Group now stands to benefit from
the significant revenues associated with the production of the
ASIC. Further details on the three tapeouts completed in the period
can be found in the Customer Activity section of this report.
The full turnkey offering continues to be attractive to both
potential and existing customers and the pipeline of opportunities
remains strong, with the customers with whom we are engaged being
increasingly optimistic about their sales prospects, and their
volume forecasts are strengthening as we get closer to the start of
production.
Continued progress in the US
The Company is pleased to report that good progress has been
made in the first half in expanding the Group's presence in the US
with the opening of an office in Santa Clara, California and the
hiring of several key personnel across both sales and engineering.
With one customer already in the US, momentum has continued to
build both during the Period and post the Period end, and the Group
now has 15 potential customers in the pipeline, representing
substantial design and prototype revenues over the next few years,
with the potential for significant production revenues
thereafter.
With the passing of the CHIPS Act in the US and subsequent push
towards near-shoring, Sondrel's position as the only advanced ASIC
company able to offer an independent and localised supply chain to
Western customers represents a significant opportunity for the
Group and we look forward to updating on further positive progress
in the US market.
Strong relationships with key industry participants
Sondrel has established highly valuable relationships with many
participants in the semiconductor industry and has continued to
build upon these in the period.
In March 2023, the Group signed a multi-year partnership
extension with Synopsys, the American electronic design automation
company, for its state-of-the-art EDA tools. These tools are vital
to the process of designing ASICs down to 3 nanometres and the
partnership extension will allow Sondrel to continue to provide its
leading design services to customers.
An additional software contract extension was also signed with
Siemens in April 2023 for the continued use of its Electronic
Design Automation (EDA) software. EDA software is also vital to
designing the ultracomplex chips that form the core of Sondrel's
offering to customers and it was very pleasing to sign this
multi-year contract extension.
Sondrel's key strengths and advantages
We believe that Sondrel has several key strengths and advantages
that are important to the success of the business:
1. Sondrel has already delivered designs at 5 nanometres and is
now working on 3 nanometre process nodes. This level of engineering
capability is limited to Sondrel and a small number of Asian direct
competitors and positions Sondrel to benefit from the megatrends
driving the increasing use of ASICs globally and the production of
system solutions utilising increasingly complex design
geometries.
2. Sondrel provides leading edge ASIC designs to a global
customer base in advanced end markets with significant structural
growth drivers including high performance computing, automotive,
artificial intelligence, VR/AR, video analytics, image processing
mobile networking and data centres.
3. Sondrel has a team of over 140 engineers that are located in
design centres globally. This enables Sondrel to be one of only a
handful of companies worldwide with the scale, capability and
strength of industry relationships to deliver projects in leading
technologies.
4. From concept to delivered ASICs, Sondrel is able to act as a
single counterparty to its customers as a provider of a full
turnkey service in the design, prototyping, testing, packaging and
production of ASICs. Sondrel is able to provide customers with the
ability to de-risk the design of ASICs through the use of Sondrel's
Architecting the Future intellectual property.
5. Sondrel has a clear organic growth strategy focused on
increasing its engineering headcount and investing in IP
development to further enhance its competitive position,
accelerating its growth in key geographies including the US and
Europe.
6. Sondrel has a proven and experienced founder-led management team.
Customer Activity
The Group continues to have a strong pipeline of revenue
opportunities providing good visibility of future growth. Customers
cover multiple growth markets, including major industrial OEMs,
automotive suppliers, AI and satellite communication services.
The Group made good progress with customer projects in the first
half of 2023, with three designs taping out in the period. These
three designs, for a provider of Edge AI Hardware Accelerator
solutions, a controller for a smartphone camera and a provider of
home network solutions, highlight the strength of Sondrel's design
capabilities and attraction of the full turnkey offering, as
customers can use Sondrel as a single touchpoint throughout the
whole process, providing security in a complex market. In addition
to these three projects, good progress has been made on the Group's
engagement for a Tier 1 OEM Automotive customer with key milestones
being achieved during the year to date.
Sondrel continues to deliver for its customers and the
completion of these three tapeouts in the period highlights the
high quality of work that Sondrel does for its customers and the
Group is already having positive discussions with customers about
designing their next generation chips.
Summary and Outlook
As the year has progressed conditions have proven to be
increasingly challenging. However, H1 2023 was a period of
significant progress, achieving multiple material project
milestones as well as operational expansion that will, combined,
deliver profitable and sustainable growth for shareholders. The
Company is taking the steps necessary to manage the current
difficulties and continues to develop a strong customer pipeline in
multiple end markets and build a reputation as a premium designer
and supplier capable of fulfilling complex ASIC turnkey solutions
across the globe.
Notwithstanding H2 2023 delays and the consequential impact on
previously anticipated ramp up as we enter FY24, our increasing
traction in the important US market, strong sales pipeline and
positive ongoing relationships with our existing ASIC customers
provides us with continued confidence in our medium-term targets
and we will ensure that we keep updating shareholders as we make
progress towards this goal.
The Group is also pleased to announce alongside results today
the successful delivery of silicon prototypes for three ASIC
projects. The three projects, detailed in the Customer Activity
section of this statement, will now proceed to validation and
qualification and remain on track for release to production.
Investing for growth has delivered promising results, evidenced
by particular progress in the important US market. The onboarding
of an experienced sales and engineering team in Santa Clara,
California, has been swift, and a sizeable sales pipeline is now in
place. In addition to this, customer production volume forecasts
for the Group's live ASIC projects in Europe have increased,
further endorsing the Company's strategy.
Nigel Vaughan and Graham Curren
Chairman and Chief Executive Officer
21(st) September 2023
Financial Highlights
-- Revenue growth of +17% to GBP9.3 million (2022: GBP8.0 million)
-- ASIC revenue growth of 50% to GBP8.1 million (2022: GBP5.4 million)
-- Adjusted EBITDA increased +150% to GBP0.4million (2022: GBP0.3 million) [3]
-- Cash balance decreased -80% GBP0.1 million (2022: GBP0.7 million)
-- Debt repaid in full GBPnil (2022: GBP2.3 million)
Operational Highlights
-- Strong growth in ASIC revenues.
-- Investment in US sales organisation, increasing the headcount
and opening of an office in Santa Clara.
-- Appointment of new sales partner in US.
-- Increased US pipeline exceeding $100m.
-- Trading in line with management expectations.
Post period end events
-- Appointment of Chief Operations Officer.
-- Appointment of Vice President of Sales.
-- Appointment of new CFO.
Financial Review
Statement of Comprehensive Income
The Group reported revenue for the six-month period of GBP9.3
million, an increase of 17% over the GBP8.0 million reported in
2022. ASIC revenues grew by 50% to GBP8.1 million as major projects
moved into the prototyping phase in 2023 in readiness for
production to start in Q4 2023/Q1 2024.
As expected, the gross profit was GBP1.5 million lower at GBP1.2
million (2022 H1 GBP2.4 million) driven by the transition of three
projects into the lower margin prototype phase compared to the same
period last year when all major projects were in the engineering
design phase.
Administrative expenses
Following the reclassification of research and development
expenditure within administrative expenses there is a decrease in
the period to GBP3.6 million from GBP4.0 million in H1 2022 due to
the exceptional costs of GBP0.5 million and capitalisation of
research and development costs of GBP0.2 million.
Removing the items above the investment in the US sales, silicon
operations departments and the Board of Directors has increased
employment costs 21% to GBP1.7 million (H1 2022 GBP1.4 million).
Legal and professional costs increased 95% to GBP0.3m (H1 2022
GBP0.1 million) due to the additional costs of public company
governance.
Other operating income increased GBP1.1 million to GBP1.5
million (H1 2022 GBP0.3 million) due to the higher cost of
prototype research and development leading to an increased claim
under the large company research and development expenditure credit
scheme (RDEC).
H1 2023 generated a positive adjusted EBITDA (defined as EBITDA
excluding exceptional items) of GBP0.3 million, an increase of 150%
(H1 2022: GBP0.1 million) at a margin of 5% (2022: 3.7%).
Exceptional costs of GBP0.5 million (2022: GBP0.1 million)
related to the downsizing of the China operation to focus
investment on the US market.
3 Adjusted EBITDA is EBITDA before deduction of exceptional
items (see note 9 for reconciliation)
Operating loss increased by GBP0.3 million to GBP1.5 million
(2022: loss of GBP1.2 million). The decrease in operating profit
against the comparative period reflects the exceptional item of
GBP0.5 million. Removing this item the operating loss has improved
by GBP0.2 million due to the improved level of operating
income.
The Group reported a loss after tax of GBP1.8 million (2022:
loss of GBP1.6 million). Net finance costs increased to GBP0.4
million (2022: GBP0.3 million) comprising of the interest
associated with the additional software acquisition in December
2022.
Statement of Financial Position
Total current assets have decreased by GBP1.9 million from 31
December 2022 to GBP13.9 million due to the reduction in
inventories and cash, GBP5.4 million, offset by the increase in
working capital and other receivables of GBP3.5 million.
Inventory at 31 December 2022 of GBP1 million relating to the
prototype mask set manufacture was released on successful
completion in Q1 2023.
Trade and other receivables increased to GBP13.5 million (FY
2022: GBP10.2 million) due to the increase in contract receivables
of GBP1.4 million to GBP7.4 million and corporation tax receivable
GBP1.7 million to GBP2.3 million under the RDEC scheme (FY 2022:
GBP6.0 million and GBP0.6 million respectively) demonstrating the
increased levels of engineering and research and development.
Trade and other payables increased to GBP16.9 million (FY 2022:
GBP15.0 million)) driven by the increased cost of prototype
activity in H1, offset by a reduction in accrued contract
liabilities.
Cash flow
The Group's cash position decreased from GBP4.5 million on 31
December 2022 to GBP0.1 million on 30 June 2023.
Operating cash outflow before movements in working capital of
GBP0.04 million (H1 2022: GBPnil);
-- Less a negative working capital flux of GBP1.9 million (H1
2022: positive flux of GBP3.6 million) driven by the increase in
work in progress and reduction in supplier payables;
-- Less cash used in investing activities of GBP1.1 million for
the software capital expenditure (H1 2022: GBP2.5 million);
-- Less cash outflow from repayment of the remaining debt GBP0.7
million and interest against the software asset and leasing
obligations of GBP0.6 million (H1 2022: GBP0.4 million).
Receivables increased by 3.4 million due the amalgamation of
project milestones for receipts, which were not triggered until
after the period end. One milestone receipt of GBP2.5 million was
received post the period end.
Unaudited interim condensed consolidated statement of
comprehensive income
For the six months ended 30 June
Six months Six months
ended 30 ended 30
June 2023 June 2022
Note GBP GBP
Revenue 5 9,334,652 7,951,648
Cost of sales (8,173,815) (5,555,718)
Gross profit 1,160,837 2,395,930
Exceptional items 6 (478,804) (52,446)
Administrative expenses (3,555,361) (3,804,291)
Other operating income 7 1,350,375 261,182
Operating loss (1,522,953) (1,199,625)
Finance income 221 3
Finance expense (427,932) (318,381)
Loss before taxation (1,950,664) (1,518,003)
Tax credit/(expense) 8 107,993 (35,888)
Loss for the period attributable
to the owners of the parent company (1,842,671) (1,553,891)
Earnings per share attributable
to the owners of the parent company 10
Basic (0.02) (0.03)
Diluted (0.02) (0.03)
All activity in both the current and the prior periods relates
to continuing operations.
The notes on pages 12 to 23 form part of these unaudited interim
condensed consolidated financial statements
Unaudited interim condensed consolidated statement of
comprehensive income
For the six months ended 30 June
Six months Six months
ended 30 ended 30
June 2023 June 2022
GBP GBP
Loss for the period (1,842,671) (1,553,891)
Other comprehensive income/(expense):
Exchange differences on translation
of foreign operations 16,634 (16,518)
Total comprehensive expense for
the period (1,826,037) (1,570,409)
============ ============
The notes on pages 12 to 23 form part of these unaudited interim
condensed consolidated financial statements.
Unaudited interim condensed consolidated statement of financial
position
As at 30 June 2023
(Unaudited) (Audited)
30 June 31 December
2023 2022
GBP GBP
Assets Notes
Non-current assets
Property, plant and equipment 303,147 293,914
Right-of-use assets 548,971 637,100
Intangible assets 11 13,446,882 14,547,870
Deferred tax assets 3,236,418 3,199,744
Total non-current assets 17,535,418 18,678,628
Current assets
Inventories - 1,044,069
Trade and other receivables 12 13,526,788 10,197,124
Cash and cash equivalents 132,227 4,449,812
Income tax receivable 273,580 149,853
Total current assets 13,932,595 15,840,858
Total assets 31,468,013 34,519,486
Equity and liabilities
Equity
Share capital 14 87,462 87,462
Share premium 18,286,562 18,286,562
Foreign currency translation reserve (38,962) (55,597)
Share-based payment reserve 812,676 812,676
Retained earnings (12,490,284) (10,647,613)
Total equity 6,657,454 8,483,490
Non-current liabilities
Other payables 13 7,589,110 9,984,228
Borrowings - 700,000
Lease liabilities 227,675 307,944
Deferred tax liabilities 88,298 74,933
Total non-current liabilities 7,905,083 11,067,105
Current liabilities
Trade and other payables 13 16,629,559 14,677,767
Short-term lease liabilities 275,917 291,124
Total current liabilities 16,905,476 14,968,891
Total liabilities 24,810,559 26,035,996
============= =============
Total equity and liabilities 31,468,013 34,519,486
============= =============
G S Curren
Director
The notes on pages 12 to 23 form part of these unaudited interim
condensed consolidated financial statements
Unaudited interim condensed consolidated s tatement of changes
in equity
For the six months ended 30 June
Share Share Foreign SBP reserve Retained Total
capital premium Currency earnings
translation
reserve
For the six month period ended 30 June 2023
GBP GBP GBP GBP GBP GBP
As at 1 January
2023 87,462 18,286,562 (55,597) 812,676 (10,647,613) 8,483,490
--------- ----------- ------------- ------------ ---------------- ------------
Loss for the
period - - - - (1,842,671) (1,842,671)
Currency translation
differences - - 16,634 - - 16,634
--------- ----------- ------------- ------------ ---------------- ------------
Total other
comprehensive
income - - 16,634 - - 16,634
Total comprehensive
income - - 16,634 - (1,842,671) (1,826,037)
--------- ----------- ------------- ------------ ---------------- ------------
Transactions
with owners in
their capacity
as owners:
--------- ----------- ------------- ------------ ---------------- ------------
Share based payment - - - - - -
charge
--------- ----------- ------------- ------------ ---------------- ------------
As at 30 June
2023 87,462 18,286,562 (38,962) 812,676 (12,490,284) 6,657,454
========= =========== ============= ============ ================ ============
For the year ended 31 December 2022
As at 1 January
2022 8,345 122,431 (16,518) 1,236,397 (7,927,194) (6,576,539)
------- ----------- --------- ---------- ------------- ------------
Loss for the
period - - - (3,191,901) (3,191,901)
Currency translation
differences - - (39,079) - - (39,079)
------- ----------- --------- ---------- ------------- ------------
Total other
comprehensive
income - - (39,079) - - (39,079)
Total comprehensive
income - - (39,079) - (3,191,901) (3,230,980)
------- ----------- --------- ---------- ------------- ------------
Transactions
with owners in
their capacity
as owners:
Share issues 36,364 18,164,131 - - - 18,200,495
Exercise of share
options 1,029 - - (513,206) 513,206 1,029
Bonus issues 41,724 - - - (41,724) -
Share based payment
charge - - - 89,485 - 89,485
------- ----------- --------- ---------- ------------- ------------
As at 31 December
2022 87,462 18,286,562 (55,597) 812,676 (10,647,613) 8,483,490
======= =========== ========= ========== ============= ============
For the six month period ended 30 June 2022
As at 1 January
2022 8,345 122,431 (16,518) 1,236,397 (7,927,194) (6,576,539)
------ -------- --------- ---------- ------------- ------------
Loss for the
period - - - (1,553,891) (1,553,891)
Currency translation
differences - - (16,518) - - (16,518)
------ -------- --------- ---------- ------------- ------------
Total other
comprehensive
income - - (16,518) - - (16,518)
Total comprehensive
income - - (16,518) - (1,553,891) (1,570,409)
------ -------- --------- ---------- ------------- ------------
Transactions
with owners in
their capacity
as owners:
Share based payment - - - - -
charge
------ -------- --------- ---------- ------------- ------------
As at 30 June
2022 8,345 122,431 (33,036) 1,236,397 (9,4981,085) (8,146,948)
====== ======== ========= ========== ============= ============
The notes on pages 12 to 23 form part of these unaudited interim
condensed consolidated financial statements.
Unaudited interim condensed consolidated s tatement of cash
flows
For the six months ended 30 June
Six months Six months
ended 30 ended 30
June 2023 June 2022
GBP GBP
Cash flows from operating activities:
Loss for the financial period (1,842,671) (1,553,891)
Adjustments for:
Amortisation of intangible assets 1,273,975 1,272,994
Depreciation of property, plant
and equipment 51,874 47,176
Depreciation of right-of-use assets 156,619 125,864
Loss on disposal of tangible assets 745 -
Interest expense 427,932 318,381
Interest income (221) (3)
Taxation charge/(credit) (107,993) 35,888
Working capital adjustments:
Increase in receivables (3,368,707) (2,734,617)
Increase in payables 475,628 6,248,371
Decrease in inventories 1,044,069 -
Corporation tax paid - (80,476)
Unrealised foreign currency losses 19,817 (566)
Net cash generated from / (used
in) operating activities (1,868,933) 3,679,121
============ ============
Cash flows from investing activities
Purchase of intangible fixed assets (1,073,276) (2,281,172)
Purchase of property, plant and
equipment (59,139) (170,566)
Interest received 221 3
Proceeds from sale of tangible fixed 760 -
assets
Net cash used in investing activities (1,131,434) (2,451,735)
============ ============
Cash flows from financing activities
Repayment of bank loans (700,000) (175,000)
Interest paid (416,279) (161,230)
Interest paid on lease liabilities (28,440) (9,278)
Principal element of lease payments (172,499) (85,089)
Net cash flows used in financing
activities (1,317,218) (430,597)
============ ============
Net increase / (decrease) in cash
and cash equivalents (4,317,585) 796,789
Cash and cash equivalents at beginning
of the period 4,449,812 (1,243,719)
Cash and cash equivalents at end
of the period 132,227 (446,930)
============ ============
The notes on pages 12 to 23 form part of these unaudited interim
condensed consolidated financial statements.
1. Corporate information
These unaudited interim condensed consolidated financial
statements of Sondrel (Holdings) Plc ("the Company") and its
subsidiaries (collectively, the "Group") for the six months ended
30 June 2023 were authorised for issue in accordance with a
resolution of the directors on 20(th) September 2023
Sondrel (Holdings) Plc (the "Company") is a public limited
company, limited by shares, which is listed on the Alternative
Investment Market (AIM) of the London Stock Exchange. The Company
is incorporated, domiciled and registered in England and Wales,
with registration number 07275279. The address of its registered
office is Sondrel House, Theale Lakes Business Park, Moulden Way,
Sulhamstead, Reading, RG7 4GB.
These unaudited financial statements incorporate the financial
information of the Company and its subsidiaries (together referred
to as the "Group").
The Group's principal activity is the execution of
system-on-chip IC designs, and associated engineering services,
with particular focus on AI, video, automotive and IoT related
applications. The Company's principal activity is to act as an
investment holding company that provides management services to its
subsidiaries.
2. Summary of Significant Accounting Policies
2.1. Basis of preparation
The unaudited interim financial statements in this report has
been prepared using accounting policies consistent with
International Financial Reporting Standards ("IFRS") as adopted by
the UK. This is consistent with the financial statements for the
year ended 31st December 2022. Financial information contained in
this document does not constitute statutory accounts within the
meaning of section 434 of the Companies Act 2006 ("the Act"). The
statutory accounts for the year ended 31 December 2022 have been
filed with the Registrar of Companies. The report of the auditors
on those statutory accounts was unqualified, did not draw attention
to any matters by way of emphasis and did not contain a statement
under section 498(2) or (3) of the Act. The group has chosen not to
adopt IAS 34 "Interim Financial Statements" in preparing the
interim financial information.
The unaudited interim condensed consolidated financial
statements do not include all the information and disclosures
required in the annual financial statements and should be read in
conjunction with the Group's annual consolidated financial
statements as at 31 December 2022. These unaudited interim
financial statements do however present selected explanatory notes
to explain events and transactions that are significant to an
understanding of the changes in the Group's financial position and
performance since 31 December 2022.
Since the 31 December 2022 results were published, management
has made a presentational change to re-allocate R&D costs from
cost of sales to overheads. The directors believe this permits the
reader a better understanding of the true direct costs of
generating revenues. Research and Development activity is not
directly aligned to sales being made in the period, and therefore
the Directors believe including these within cost of sales does not
present a fair reflection of the true margin made during the
period. This allocation of costs has been applied throughout the
current period, and will be adopted by the Group going forward. The
figures relating to the six month period to June 2022 also reflect
the revised presentation.
2.2. Going Concern
Notwithstanding the loss from continuing operations for the six
month period to June 2023, the directors have prepared the
unaudited interim financial information under the going concern
basis.
As part of normal business practice, the Group prepares monthly
detailed financial forecasts which incorporate year-to-date
performance and scenario planning. The Directors have considered
the cashflow requirements of the Group and concluded will have
sufficient funds to meet its financial liabilities as and when they
fall due, for a period of at least 12 months from the date of this
report.
2.3. Summary of significant accounting policies
(a) Revenue from contracts with customers
The Group is in the business of providing system-on-chip and
associated engineering services. Revenue from contracts with
customers is recognised when, in accordance with IFRS 15, control
of the goods or services are transferred to the customer at an
amount that reflects the consideration to which the Group expects
to be entitled in exchange for those goods or services.
Project revenue
The Group provides services to customers in project
arrangements, covering the Design phase, New Product Integration
("NPI") phase and Production phase.
There are situations where contracts with customers for these
phases are entered into simultaneously. Where this is the case, and
the contracts are negotiated as a package with a single commercial
objective, they are accounted for as a single contract.
In order to identify the performance obligations in the
contract, the Directors assess the services provided in the
contracts and whether they are capable of being distinct and
distinct in the context of the contract. The Group has identified
that the Design service, NPI service and Production service are
separate performance obligations.
Where the contracts with customers contain more than one
performance obligation, any discount provided to the customer in
the contract is allocated on a proportionate basis over all
performance obligations within the contract.
When project contracts contain only one performance obligation,
and are not combined with other performance obligations, the
contracts with customers are for fixed price consideration with no
variable components.
The Group does not enter into any arrangements with customers
which include a significant financing component.
The service provided to customers does not create an asset with
an alternative use to the Group and the Group has an enforceable
right to payment for performance completed at contracted rates
which include cost plus a reasonable profit margin. Therefore, the
Group recognises revenue from these performance obligations over
time.
In order to determine a measure of progress of satisfaction of
the Design and NPI performance obligations, the Group uses the
input method based on time incurred, as this best reflects the
progress of satisfaction of the performance obligations and the
delivery of the output to the customer.
Contract variations are treated as modifications, as there is
only one performance obligation to the design phase of a contract,
any variations to scope cannot be distinct and are recognised on a
cumulative catch-up basis.
Consultancy revenue
The Group provides consultants to provide services to customers.
Each of these consultancy arrangements are separate performance
obligations. The customer simultaneously receives and consumes the
benefits provided by the Group's performance and so the Group
recognises revenue for this performance obligation over time.
The majority of contracts with customers are for fixed price
consideration with no variable components. Certain contracts
contain fixed rebates payable to the customer for which no distinct
service is provided to the Group. These rebates constitute a form
of variable consideration and are recognised as a reduction to the
revenue.
The Group had one arrangement with a customer which involved the
withholding of a retention until completion of the project. The
arrangement provided the customer with protection for the Group
failing to adequately complete obligations under the contract.
Therefore, this is not accounted for as a significant financing
component. As this is a contractual payment term, revenue is
recognised in full as the Group performs, with a contract asset
recognised for the retention element. In order to determine a
measure of progress of satisfaction of the performance obligation,
the Group uses the input method based on time incurred, as this
best reflects the progress of satisfaction of the performance
obligation.
Warranties
The Group provides warranties to customers that ensure that the
products comply with agreed-upon-specifications. The warranty
arrangements are not recognised as separate performance obligations
because they cannot be purchased separately and do not provide the
customer with a service in addition to the assurance that the
product complies with agreed-upon specifications. A provision is
recognised for warranty claims when they meet the recognition
criteria.
Contract balances
Contract assets / receivables
A contract asset is initially recognised for revenue earned from
services in advance of an invoice being issued where the Group does
not have an enforceable right for payment for work performed. Where
the Group does have an enforceable right for payment for work
performed, unbilled revenue is recognised as other contract
receivables. Upon the issuance of an invoice, the amount recognised
is reclassified to trade receivables.
Contract cost - costs to obtain a contract
Costs to obtain a contract relate to sales commission paid which
would not be payable if the contract has not been obtained. This
cost is recognised as an asset and amortised over the duration of
the contract. Where the amortisation period of the asset would be
one year or less, the cost is recognised as an expense when
incurred.
Contract cost - costs to fulfil a contract
Costs to fulfil a contract mainly relate to direct labour costs
and software tools which are expensed as incurred. The Group does
not incur costs to fulfil their obligations under a contract once
it is obtained, but before transferring goods or services to the
customer and therefore no contract cost asset is recognised.
Contract liabilities
A contract liability is recognised if a payment is received or a
payment is due (whichever is earlier) from a customer before the
Group transfers the related services. Contract liabilities are
recognised as revenue when the Group performs under the
contract.
(b) Lease employee benefits
Short-term employee benefits including holiday pay and annual
bonuses are accrued as services are rendered.
Contributions to defined contribution pension schemes are
charged to profit or loss as they become payable in accordance with
the rules of the scheme. Differences between contributions payable
in the year and those actually paid are shown as either accruals or
other receivables in the statement of financial position.
(c) Share-based payments
Employees (including senior executives) of the Group receive
remuneration in the form of share-based payments, whereby employees
render services as consideration for equity instruments
(equity-settled transactions).
The cost of equity-settled transactions is determined by the
fair value at the date when the grant is made using an appropriate
valuation model. That cost is recognised as an expense, together
with a corresponding increase in equity, over the period in which
the service and, where applicable, the performance conditions are
fulfilled (the vesting period). The cumulative expense recognised
for equity-settled transactions at each reporting date until the
vesting date reflects the extent to which the vesting period has
expired and the Group's best estimate of the number of equity
instruments that will ultimately vest.
Where an award is cancelled by the entity or by the
counterparty, any remaining element of the fair value of the award
is expensed immediately through profit or loss.
(d) Interest
Interest income and expense is recognised using the effective
interest rate basis.
(e) Taxation
The tax expense for the period comprises current and deferred
tax. Tax is recognised in profit or loss, except if it arises from
transactions or events that are recognised in other comprehensive
income or directly in equity. In this case, the tax is recognised
in other comprehensive income or directly in equity
respectively.
Current tax
Current tax is based on the taxable profit for the year and is
calculated using the tax rates in force or substantively enacted at
the reporting date. Taxable profit differs from accounting profit
either because some income and expenses are never taxable or
deductible, or deductible in other years.
Deferred tax
Deferred tax is recognised in respect of all temporary
differences between the carrying value of assets and liabilities in
the consolidated statement of financial position and the
corresponding tax base, with the exception of temporary differences
arising from goodwill or from the initial recognition (other than
in a business combination) of assets and liabilities in a
transaction that affects neither the taxable profit nor the
accounting profit.
Deferred tax is calculated at the tax rates that are expected to
apply to the period when the asset is realised or the liability is
settled, based on tax rates (and tax laws) that have been enacted
or substantively enacted by the reporting date.
The measurement of deferred tax assets and liabilities reflect
the tax consequences that would follow the manner in which the
Group expects, at the end of the reporting period, to recover or
settle the carrying amount of its asset and liabilities.
Deferred tax assets are recognised only to the extent that the
Group considers that it is probable (i.e. more likely than not)
that there will be sufficient taxable profits available for the
asset to be utilised within the same tax jurisdiction. Deferred tax
assets and liabilities are offset only when there is a legally
enforceable right to offset current tax assets against current tax
liabilities, they relate to the same tax authority and the Group's
intention is to settle the amounts on a net basis.
Tax credits
The Group makes claims for research and development tax relief
in the UK under both the Research and Development Expenditure
Credit (RDEC) scheme and the small or medium-sized enterprise (SME)
research and development tax relief scheme. Claims under the RDEC
scheme are recognised in other operating income. Enhanced
expenditure relief under the SME scheme is recognised within the
taxation charge / credit.
Research and development tax credits are recognised in the
period in which the costs are incurred, and the claim submitted on
the basis of an established record of successful research and
development tax credit claims for the work undertaken by the
employees of the Group.
(f) Earnings per share and dividends
Basic EPS
Basic earnings per share is calculated on the Group's profit or
loss after taxation attributable to the parent entity and on the
basis of weighted average of issued and fully paid ordinary shares
at the end of the year.
Diluted EPS
Diluted EPS is calculated by dividing the profit or loss after
taxation attributable to the parent entity by the weighted average
number of ordinary shares outstanding during the year plus the
weighted average number of ordinary shares that would be issued on
conversion of all the dilutive potential ordinary shares (after
adjusting for outstanding share awards arising from the share-based
payment scheme) into ordinary shares.
(g) Property, plant and equipment
Property, plant and equipment is stated at cost, less
accumulated depreciation and any accumulated impairment losses.
Cost includes the original purchase price of the asset and the
costs attributable to bringing the asset to its working condition
for its intended use.
Depreciation is included within administrative expenses and is
calculated on a straight-line basis over the estimated useful lives
of the assets, as follows:
Office equipment - 3 - 10 years straight line
Additions to property, plant and equipment are depreciated from
the date the asset becomes available for intended use.
An item of property, plant and equipment is derecognised upon
disposal (i.e., at the date the recipient obtains control) or when
no future economic benefits are expected from its use or disposal.
Any gain or loss arising on derecognition of the asset (calculated
as the difference between the net disposal proceeds and the
carrying amount of the asset) is included in profit or loss when
the asset is derecognised.
The residual values, useful lives and methods of depreciation of
property, plant and equipment are reviewed at each financial year
end and adjusted prospectively, if appropriate.
(h) Intangible assets
Intangible assets are initially recognised at cost and
subsequently carried at cost less any accumulated amortisation and
accumulated impairment losses.
Intangible assets with finite lives are amortised over the
useful economic life and assessed for impairment whenever there is
an indication that the intangible asset may be impaired. The
amortisation period and the amortisation method for an intangible
asset with a finite useful life are reviewed at least at the end of
each reporting period. Changes in the expected useful life or the
expected pattern of consumption of future economic benefits
embodied in the asset are considered to modify the amortisation
period or method, as appropriate, and are treated as changes in
accounting estimates.
An intangible asset is derecognised upon disposal (i.e. at the
date the recipient obtains control) or when no future economic
benefits are expected from its use or disposal. Any gain or loss
arising upon derecognition of the asset (calculated as the
difference between the net disposal proceeds and the carrying
amount of the asset) is included in the statement of profit or
loss.
(i) Research and development
Research expenditure relates primarily to new internal process
improvements that will bring tangible benefits to future product
development. Expenditure on the research phase of projects is
recognised as an expense as incurred.
Costs that are directly attributable to a project's development
phase are recognised as intangible assets, provided they meet the
following recognition requirements:
-- the development costs can be measured reliably
-- the project is technically and commercially feasible
-- the Group intends to and has sufficient resources to complete the project
-- the Group has the ability to use or sell the developed software
-- the developed software will generate probable future economic benefits
Development costs not meeting these criteria for capitalisation
are expensed as incurred.
The key judgement areas are the ability to measure the future
economic benefits reliably and determining the period over which
these benefits are delivered. The Group measures each research and
development project on its own merits.
The main costs attributed to development costs are that of
payroll, third party contractors and third party software.
Under IAS 38, at the point where activities no longer relate to
development but to maintenance, capitalisation is discontinued.
Amortisation is included within cost of sales and is recognised
as follows:
Software licences - on a usage basis over the length of
licence agreement. Licence agreements
have lives of between 1 and 3 years.
Development costs - not amortised until brought into use.
The useful life is considered to be
10 years.
(j) Impairment of non-financial assets
Assets that are subject to depreciation or amortisation are
assessed at each reporting date to determine whether there is any
indication that the assets are impaired. Where there is any
indication that an asset may be impaired, the carrying value of the
asset is tested for impairment. An impairment loss is recognised
for the amount by which the asset's carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of an
asset's fair value less costs to sell and value in use. For the
purposes of assessing impairment, assets are grouped at the lowest
levels for which there are separately identifiable cash flows.
Non-financial assets that have been previously impaired are
reviewed at each reporting date to assess whether there is any
indication that the impairment losses recognised in prior periods
may no longer exist or may have decreased.
(k) Government grants
Government grants are 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.
(l) Inventories
Inventories relate to work in progress and are valued at the
lower of cost and net realisable value. Costs incurred relate to
direct materials.
(m) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand
deposits.
Bank overdrafts are included in cash and cash equivalents for
the purposes of presentation in the statement of cash flows because
they are an integral part of the Group's cash management. Bank
overdrafts are included in trade and other payables in the
statement of financial position.
(n) Financial instruments
Financial assets
Financial assets comprise trade and other receivables and cash
and cash equivalents.
Trade and other receivables are initially measured at
transaction price, and subsequently at their amortised cost subject
to any impairment in accordance with IFRS 9.
Impairment
For trade receivables, contract receivables and contract assets,
the Group applies a simplified approach in calculating expected
credit losses (ECLs). Therefore, the Group recognises a loss
allowance based on lifetime ECLs at each reporting date. The Group
has established a provision matrix that is based on its historical
credit loss experience, adjusted for forward-looking factors
specific to the debtors and the economic environment. The Group
considers a financial asset in default when contractual payments
are 60 days past due.
Financial liabilities
Financial liabilities comprise trade and other payables and
loans and borrowings and are recognised initially at fair value net
of directly attributable transaction costs (if any), and
subsequently at amortised cost.
Modification of financial liabilities
Where there is a modification to a financial liability, the
discounted present value of the cash flows under the new terms,
using the original effective interest rate, is compared to the
discounted present value of the remaining cash flows of the
original liability. If the difference is greater than 10%, this is
considered to be a substantial modification, resulting in a
derecognition of the original liability and the recognition of a
new liability.
(o) Equity
Equity instruments issued are recorded at fair value on initial
recognition net of transaction costs.
(p) Borrowings
Interest bearing bank loans and overdrafts are initially
recorded at the value of the amount received, net of attributable
transaction costs. Interest bearing borrowings are subsequently
stated at amortised cost with any difference between cost and
redemption value being recognised in the consolidated statement of
profit and loss and other comprehensive income over the period of
the borrowing using the effective interest method.
2.4. Standards in issue but not yet effective
At the date of authorisation of these financial statements there
were amendments to standards which were in issue, but which were
not yet effective, and which have not been applied. The principal
ones were:
Amendment to IFRS 16 - Leases on sale and leaseback transaction
(effective for annual periods beginning on or after 1 January
2024)
Amendments to IAS 1, Presentation of financial statements on
classification of liabilities (effective date deferred until
accounting periods starting not earlier than 1 January 2024)
The Directors do not expect the adoption of these amendments to
standards to have a material impact on the financial
statements.
3. Significant events and transactions
There were no significant events and transactions during the
period.
4. Segment information
The Group considers there to be only one business segment which
is monitored and reported to the Chief Operating Decision Maker
('CODM'), being the Board of Directors. This judgement is based on
the fact that the Group provides similar products and services to
all its customers, and the key performance indicators monitored by
the CODM are total revenue and profit/(loss) for the period.
5. Revenue from contracts with customers
In the following table, revenue is disaggregated by major
products/service lines and primary geographical market. All revenue
is recognised over time.
Six months Six months
ended 30 ended 30
June 2023 June 2022
GBP GBP
Service line
Projects 8,135,504 5,433, 970
Consultancy 1,199,148 2,517, 678
Total 9,334,652 7,951,648
=========== ===========
Primary geographical markets
UK 1,569,289 3,142,119
Rest of the world 7,765,363 4,809,529
Total revenue 9,334,652 7,951,648
----------- -----------
The operations are not cyclical and there is no significant
seasonality to the operations.
6. Exceptional Items
Six months Six months
ended 30 ended 30
June 2023 June 2022
GBP GBP
Cost of listing - 52,446
Cost of restructure 478,804 -
Total 478,804 52,446
=========== ===========
Exceptional expenses in the six month period ended 30 June 2023
relate to the restructuring of the engineering activity in China.
This forms part of the company strategy to focus on the US market.
Exceptional expenses in the six month period ended 30 June 2022
relate to the costs of the group undergoing the Initial Public
Offering in October 2022.
7. Other Operating Income
Six months Six months
ended 30 ended 30
June 2023 June 2022
GBP GBP
R&D tax credit 1,350,375 261,182
Total 1,350,375 261,182
=========== ===========
8. Taxation
The Group calculated the income tax expense for the period using
the tax rate that would be applicable to the expected total annual
earnings. The major components of income tax expense in the
unaudited interim condensed consolidated statement of profit or
loss are:
Six months Six months
ended 30 ended 30
June 2023 June 2022
GBP GBP
Income taxes
Current tax (credit) / expense (84,684) 35,888
Deferred tax (credit) (23,309) -
Total tax (credit) / charge (107,993) 35,888
=========== ===========
Tax for the six month period is charged at 25% (six months ended
30 June 2022: 19%), representing the best estimate of the average
annual effective tax rate expected for the full year, applied to
the pre -- tax income of the six month period.
9. Alternative performance measures
These items are included in normal operating costs of the
business but are significant cash and non-cash expenses that are
separately disclosed because of their size, nature or incidence. It
is the Group's view that excluding them from the operating profit
gives a better representation of the underlying performance of the
business in the period.
The Group's primary results measure, which is considered by the
directors of Sondrel (Holdings) plc to better represent the
underlying and continuing performance of the Group, is adjusted
EBITDA as set out below. EBITDA is a commonly used measure in which
earnings are stated before net finance income, amortisation and
depreciation as a proxy for cash generated from trading.
A further alternative performance measure for the Group is
adjusted loss for the period before tax. This is used to measure
earnings before tax adjusted for amortization and exceptional
items.
Six months Six months
ended 30 ended 30
June 2023 June 2022
GBP GBP
Loss for the period before tax (1,950,664) (1,518,003)
Exceptional costs (note 6) 478,804 52,446
Depreciation 208,493 166,912
Amortisation (note 11) 1,273,975 1,272,994
Finance costs 427,932 318,381
Adjusted EBITDA 438,540 292,730
------------ ------------
Loss for the period before tax (1,950,664) (1,518,003)
Exceptional items (note 6) 478,804 52,446
Amortisation (note 11) 1,273,975 1,272,994
Adjusted loss for the period before tax (197,885) (192,563)
------------ ------------
10. Earnings per share (EPS)
Basic EPS is calculated by dividing the profit attributable to
ordinary shareholders of the Group by the weighted average number
of ordinary shares outstanding during the period.
Six months Six months
ended 30 ended 30
June 2023 June 2022
GBP GBP
Loss for the period (1,842,671) (1,553,891)
Weighted average number of shares 87,461,772 50,068,686
Basic earnings loss per share (GBP) (0.02) (0.03)
============ ============
Loss for the period (1,842,671) (1,553,891)
Weighted average number of shares 87,461,772 50,068,686
Dilutive effect of share options - -
------------ ------------
Weighted average number of diluted shares 87,461,772 50,068,686
Diluted loss per share (GBP) (0.02) (0.03)
During the six month periods ending 30 June 2022 and 30 June
2023, the Group made a loss and so the share options are
anti-dilutive. As such they are not taken into account in
determining the weighted average number of shares for calculating
the diluted Earnings Per Share. As a result, the diluted Earnings
Per Share is equal to the Basic Earnings Per Share.
11. Intangibles
Software Development Total
licenses costs
GBP GBP GBP
Cost
At 1 January 2022 12,511,590 - 12,511,590
Disposals (917,118) - (917,118)
At 30 June 2022 11,594,472 - 11,594,472
Additions 8,098,891 239,373 8,338,264
Disposals (1,021,447) - (1,021,447)
At 31 December 2022 18,671,916 239,373 18,911,289
Additions 18,373 154,613 172,986
At 30 June 2023 18,690,289 393,986 19,084,275
============ ============ ============
Amortisation
At 1 January 2022 3,165,209 - 3,165,209
Amortisation charge for the
period 1,272,994 - 1,272,994
Disposals (917,118) - (917,118)
At 30 June 2022 3,521,085 - 3,521,085
Amortisation charge for the
period 1,683,085 - 1,683,085
Disposals (840,752) - (840,752)
At 31 December 2022 4,363,418 - 4,363,418
Amortisation charge for the
period 1,273,975 - 1,273,975
At 30 June 2023 5,637,393 - 5,637,393
============ ============ ============
Net book value
At 30 June 2023 13,052,896 393,986 13,446,882
At 31 December 2022 14,308,497 239,373 14,547,870
------------ ------------ ------------
At 30 June 2022 8,073,387 - 8,073,387
============ ============ ============
The additions in the period relate to capitalised development
costs and externally generated software licenses.
12. Trade and other receivables
(Unaudited) (Audited)
30 June
2023 31 December
2022
Current trade and other receivables: GBP GBP
Trade receivables 3,478,571 3,138,895
Contract receivables 7,385,833 5,972,166
------------- --------------
10,864,404 9,111,061
Allowance for expected credit losses (91,306) (91,306)
------------- --------------
10,773,098 9,019,755
Other receivables 2,061,691 827,928
Prepayment and accrued income 691,999 349,441
------------- --------------
Total 13,526,788 10,197,124
============= ==============
Management have assessed the expected credit loss up to 30 June
2023 and the change from the year end balance (31 December 2022)
was deemed immaterial.
13. Trade and other payables
(Unaudited) (Audited)
30 June
2023 31 December
2022
Current trade and other payables: GBP GBP
Trade payables 3,437,468 586,072
Social security and other taxes 289,280 432,596
Other payables 4,657,223 4,514,832
Accruals 4,242,460 3,390,621
Contract liabilities 4,003,128 5,753,646
Total 16,629,559 14,677,767
============= ==============
Non-current trade and other payables:
Other payables 7,589,110 9,984,228
Total 7,589,110 9,984,228
============= ==============
Trade payables are non-interest bearing and are normally settled
on 60 day payment terms.
Other payables represent the amounts owed in relation to the
acquisition of software licences and are repayable in staged
instalments over 3 years. An effective interest rate of 4.68% to
7.56% has been charged on this payables balance. The rate is
determined by each part of the contract.
14. Share capital
(Unaudited) (Audited) (Unaudited) (Audited)
30 June 31 December 30 June 31 December
2023 2022 2023 2022
Number Number GBP GBP
Ordinary shares of GBP0.001
each 87,461,772 87,461,772 87,462 87,462
Total 87,461,772 87,461,772 87,462 87,462
============ ============= ============ =============
15. Subsequent events
There are no events subsequent to the reporting date which would
have a material impact on the financial statements.
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 SEMFASEDSEEU
(END) Dow Jones Newswires
September 21, 2023 02:00 ET (06:00 GMT)
Sondrel (holdings) (LSE:SND)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Sondrel (holdings) (LSE:SND)
Gráfica de Acción Histórica
De May 2023 a May 2024