TIDMSBDS
RNS Number : 2251M
Silver Bullet Data Services Grp PLC
20 September 2021
20 September 2021
Silver Bullet Data Services Group plc
("Silverbullet" or the "Company", or, together with its
subsidiaries, the "Group")
Interim Results
Silverbullet, a provider of digital transformation services and
products, is pleased to announce interims results for the six
months to 30 June 2021 .
Financial Highlights
Six months to Six months to June
June 2021 2020
Revenue GBP1.67m GBP1.28m
Gross Profit GBP1.24m GBP1.01m
Headline Loss before GBP2.97m GBP1.99m
tax*
Reported Loss before GBP3.93m GBP2.41m
tax
Earnings Per Share (GBP0.44) (GBP0.41)
* Headline results are calculated before exceptional items and
share option charges
Business Highlights
-- Successful admission to trading on AIM on 28 June 2021,
raising gross proceeds of GBP9.5 million.
-- Revenue of GBP1.67 million up 30 per cent on H1 2020,
this is ahead of management expectations.
-- 13 new services client wins in the period including ITV
and Venture Crowd.
-- Consolidation of existing services clients as a result
of additional contract wins with Channel 4, Heineken and
Jägermeister.
-- Extensive technical development of '4D', Silverbullet's
contextual outcomes engine, led by the in-house development
and product teams.
-- 4D campaigns have been successfully delivered for several
clients and global agencies.
-- Recruitment of Kristen Kelly as Chief Operating Officer.
-- Expansion of our 4D-focused US office, including the recruitment
of VP Partner Solutions, Director of Product Marketing,
Senior Director Strategic Sales and a Client Success Director.
Chief Executive Officer's Report
Silverbullet (the "Company", or, together with its subsidiaries,
the "Group") has delivered strong results for the first half start
to 2021, as well as successfully completing its IPO on the AIM
market of the London Stock Exchange ("AIM") on 28 June 2021. The
listing raised gross proceeds of approximately GBP9.5 million and
welcomed several established UK funds as shareholders.
Silverbullet is a data and digital transformation company that
seeks to deliver future-proofed solutions for the privacy-first,
post-cookie era for marketing and advertising purposes. The Group's
core services and products comprise:
-- Data-driven transformational services : first-party data
strategy and customer journey activation advisory services,
technology implementation and integration engineering, alongside
adtech and martech managed services. In short, our expert services
help businesses deliver privacy-first, customer-centric marketing,
powered by data.
-- '4D' - proprietary contextual data product: a contextual
targeting solution designed to help clients face the challenges
posed by the post-cookie era. 4D enables contextual a strong focus
on online video. In short, 4D drives business outcomes for the
modern marketer.
We have grown Group revenue by a solid 30 per cent. compared to
H1 2020, underpinned by growth in our data-driven transformation
services. We believe this a reflection of the ongoing permanent
shift in consumer behaviours to digital and the need for our
clients to accelerate their data driven marketing transformation.
The Covid-19 pandemic and increasing regulatory scrutiny around
personal data are proving strong agents of change in the ways
brands are able to connect and transact with their customers,
including through the demise of the third-party cookie, and we are
perfectly positioned at Silverbullet to assist in their
transformation journey through our data technology services and 4D
product.
I am particularly proud of how the team have delivered fantastic
growth in services revenues and the continued development of a
world-class product whilst operating in a challenging working and
home environment, and furthermore during a period in which the
Company delivered a successful AIM IPO.
Data transformation services.
During the first half of the year, we have secured 13 new
clients wins and, post period end, a further nine. We have also
consolidated and extended contracts with a number of our key
existing clients.
Winning new data and technology transformation contracts with
ITV, RTE, SBS in the period, we are now working with six major
broadcasters across the globe to assist them in transforming their
advertising product from linear to programmatic. We are very proud
to be at the centre of the era of the transformation for the
Broadcast industry, which will affect the entire advertising
ecosystem as TV accelerates into being digitally traded and data
enabled in the coming year.
Revenue committed in our martech services unit has grown 72 per
cent. versus the year ended December 2020, underpinned by the
strengthening of our strategic partnership with the key software
vendors including Salesforce, where Silverbullet works as a
preferred services partner, and Treasure Data (a Softbank company),
which works with Silverbullet as its European services partner.
4D - Proprietary contextual data product.
4D is Silverbullet's emerging proprietary contextual data
product. After testing in H1 2021 4D is gaining traction in the
market with multiple clients and agencies now using the platform
for contextual targeting including video and display programmatic
advertising, as well as for the purpose of generating unique
insights on consumer activity online using our unique deterministic
contextual data.
Specifically, 4D, is designed to enable advertisers to generate
increased marketing ROI in the post-cookie, first-party data era,
and is now being used by multiple Fortune 500 brands and agencies.
The digital ad market, in which 4D is embedded, now accounts for
approximately 58 per cent. of total worldwide ad spend, with a
projected growth to 68 per cent. forecast by 2024 (according to
eMarketer Worldwide Ad Spend report).
Investment in talent.
We have continued to invest in our people and culture, focusing
on expanding our US team, with new hires in key customer success
and sales positions to lead our client expansion in Q4 and beyond.
We have also attracted a number of key product and engineering
leaders to develop new features for 4D set for release early next
year.
Our already experienced management team, which includes key
professionals from the industry, has been recently enhanced by the
arrival of Kristen Kelly as Chief Operating Officer. Kristen was
formerly President of Precision, EMEA, at Publicis Media.
Outlook
We are delighted with the performance and continued development
of the Group during H1 2021. The second half of this year, and
2022, are set to see programmatic media rise further, creating a
positive environment for both our services and product business. We
believe a permanent shift in consumer behaviours is accelerating
business investment in marketing technology and data, enhancing
Silverbullet's prospects with current and new clients. We are
confident in our new business pipeline and our ability to extend
our services offering to existing blue-chip client base.
The added credibility and increased profile generated as a
result of the Company's AIM IPO, combined with our recent run of
new business wins, has also attracted potential new strategic
partnerships and M&A opportunities which we continue to explore
on an ongoing basis.
We have material visibility on full-year revenues, which
provides confidence and positive momentum for the second half of
2021, and we remain excited for the longer-term prospects for our
4D product.
I would like to thank all of our staff and management for their
continued dedication and hard work, as well as both our new and
longer-term stakeholders, and we look forward to providing further
updates on our progress in due course.
Ian James
Chief Executive Officer and Director
Consolidated Statement of Comprehensive Income
Note Six months Six months
ended 30 ended 30
June 2021 June 2020
GBP GBP
Revenue 3 1,668,894 1,282,591
Cost of sales (424,093) (270,384)
Gross profit 1,244,801 1,012,207
Other operating income 4,006 6,078
Distribution costs (227,729) (160,333)
Administrative expenses (4,412,008) (3,201,147)
Exceptional items 4 (508,821) (53,235)
------------ ------------
Operating loss (3,899,751) (2,396,430)
Finance expense (33,777) (15,963)
------------ ------------
Loss before taxation (3,933,528) (2,412,393)
Taxation 145,085 349,912
------------ ------------
Loss after taxation attributable
to the equity shareholders of the
company (3,788,443) (2,062,481)
Other comprehensive income / (loss)
net of taxation
Currency translation differences (78,109) (24,683)
Total comprehensive loss for the
period attributable to the equity
shareholders of the company (3,866,552) (2,087,164)
============ ============
Earnings per share
Basic earnings 6 (0.44) (0.41)
Diluted earnings 6 (0.44) (0.41)
Consolidated Statement of Financial Position
At 30 At 31 At 30
June 2021 December June 2020
2020
Note GBP GBP GBP
Non-current assets
Goodwill 7 4,330,222 4,330,222 4,688,469
Intangible assets 7 1,675,821 1,242,717 906,365
Property, plant and equipment 56,953 36,940 30,674
----------- ------------- -------------
Total non-current assets 6,062,996 5,609,879 5,625,508
Current assets
Trade and other receivables 1,787,809 1,723,280 1,401,665
Cash and cash equivalents 8,649,818 654,792 580,704
----------- ------------- -------------
Total current assets 10,437,627 2,378,072 1,982,369
Total Assets 16,500,623 7,987,951 7,607,877
----------- ------------- -------------
Current liabilities
Trade and other payables 3,287,249 3,272,101 2,652,039
Loans and other borrowings - - 776,039
----------- ------------- -------------
Total current liabilities 3,287,249 3,272,101 3,428,078
----------- ------------- -------------
Non-current liabilities
Loans and borrowings 194,216 188,570 18,912
Deferred tax liability 5 318,406 223,921 101,341
----------- ------------- -------------
Total non-current liabilities 512,622 412,491 120,253
----------- ------------- -------------
Total liabilities 3,799,871 3,684,592 3,548,331
----------- ------------- -------------
Net assets 12,700,752 4,303,359 4,059,546
=========== ============= =============
Equity
Share capital 8 134,190 8,256 8,004
Share premium 8 8,642,511 35,387,853 32,130,080
Share option reserve 9 812,332 1,192,653 1,183,727
Retained earnings 3,134,556 (32,240,404) (29,230,193)
Capital redemption reserve 50 - -
Foreign exchange reserve (22,887) (44,999) (32,072)
Total equity attributable to
the equity shareholders of
the company 12,700,752 4,303,359 4,059,546
=========== ============= =============
Consolidated Statement of Cash Flows
Six months Six months
ended 30 ended 30
June 2021 June 2020
GBP GBP
Cash flows from operating activities
(Loss) after tax from continuing operations (3,788,443) (2,062,481)
Adjustments for:
Depreciation 21,056 6,062
Amortisation 201,982 105,319
Foreign exchange (78,109) (24,683)
Net finance expense 33,777 15,963
Taxation expense (145,085) (349,912)
Increase in trade and other receivables (64,529) (240,506)
(Decrease) / increase in trade and other
payables (64,874) 459,709
Share option charge 457,636 367,995
Increase in deferred tax liability 94,485 -
------------ ------------
Cash generated from operations (3,332,104) (1,722,534)
Taxation refunded 225,106 82,185
------------ ------------
Net cash used in operating activities (3,106,998) (1,640,349)
============ ============
Cash flows from investing activities
Purchase of property, plant and equipment (41,069) (8,567)
Purchase of intangible assets (635,086) (403,780)
------------ ------------
Net cash used in investing activities (676,155) (412,347)
============ ============
Cash flows from financing activities
Proceeds from borrowings 5,646 -
Repayment of borrowings - (42,161)
New equity issued (net of transaction
costs) 11,806,310 2,434,580
Interest paid (33,777) (15,963)
Net cash from financing activities 11,778,179 2,376,456
============ ============
Net increase in cash and cash equivalents 7,995,026 323,760
Cash and cash equivalents at beginning
of period 654,792 256,944
------------ ------------
Cash and cash equivalents at end of
period 8,649,818 580,704
============ ============
Consolidated Statement of Changes in Equity attributable to the
shareholders
Share Share Retained Share Capital Foreign Total
Capital premium earnings Option redemption exchange equity
Reserve reserve reserve
GBP GBP GBP GBP GBP GBP GBP
As at 1 January 2020 4,507 28,581,634 (27,122,080) 815,732 - (53,021) 2,226,772
Total comprehensive
loss
for the period - - (2,108,113) - - 20,949 (2,087,164)
Shares issued during
the
period 3,497 3,548,446 - - - - 3,551,943
Share option charge - - - 367,995 - - 367,995
-------- ------------- ------------- ---------- ----------- --------- ------------
As at 30 June 2020 8,004 32,130,080 (29,230,193) 1,183,727 - (32,072) 4,059,546
Total comprehensive
loss
for the period - - (3,010,211) - - (12,927) (3,023,138)
Shares issued during
the
period 252 3,257,773 - - - - 3,258,025
Share option charge - - - 8,926 - - 8,926
-------- ------------- ------------- ---------- ----------- --------- ------------
As at 31 December
2020 8,256 35,387,853 (32,240,404) 1,192,653 - (44,999) 4,303,359
Total comprehensive
loss
for the period - - (3,888,664) - - 22,112 (3,866,552)
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 - - 457,636 - - 457,636
Share options
exercised 275 1,700 470,983 (470,983) - - 1,975
Share options
forfeited - - 366,974 (366,974) - - -
Shares issued during
the
period (net of
transaction
costs) 38,454 11,765,880 - - - - 11,804,334
As at 30 June 2021 134,190 8,642,511 3,134,556 812,332 50 (22,887) 12,700,752
======== ============= ============= ========== =========== ========= ============
Notes to the Historical Financial Information
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 limited liability company incorporated in
England and Wales and domiciled in the UK. The address of the
registered office is Studio 11, Tiger House, Burton Street, London,
WC1H 9BY.
The principal activity of the SBDS Group is marketing services
through the application of big data technologies to reduce
friction.
BASIS OF PREPARATION
The interim consolidated financial statements have been prepared
in accordance with International Accounting Standard (IAS) 34,
Interim Financial Reporting. These interim financial statements
have been prepared in accordance with those International
Accounting Standards in conformity with the requirements of the
Companies Act 2006 and IFRIC interpretations issued and effective
or issued and early adopted as at the time of preparing these
statements (July 2021).
These consolidated interim financial statements have been
prepared in accordance with the accounting policies set out below,
which have been consistently applied to all the periods presented.
These accounting policies comply with applicable International
Accounting Standards in conformity with the requirements of the
Companies Act 2006 and IFRIC interpretations issued and effective
at the time of preparing these statements.
The preparation of these interim financial statements in
accordance with International Accounting Standards in conformity
with the requirements of the Companies Act 2006 requires the use of
certain accounting estimates. It also requires management to
exercise judgement in the process of applying the Group's
accounting policies. The areas involving a high degree of judgement
or complexity, or areas where the assumptions and estimates are
significant to the consolidated interim financial statements are
disclosed in Note 2.
The financial information contained in this report, which has
not been audited, does not constitute statutory accounts as defined
by Section 434 of the Companies Act 2006.
The presentational currency of the Group is GBP with functional
currencies of the subsidiaries being GBP, EUR, AUD, and USD.
GOING CONCERN
The directors have prepared detailed budgets and forecasts
covering the period to 31 December 2023 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. Additional forecasting has been
undertaken following the impact of COVID-19 that has considered the
impact on the core business.
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 these financial
statements.
2. Significant accounting policies
SIGNIFICANT ACCOUNTING ESTIMATES AND ASSUMPTIONS
The preparation of the interim financial statements in
accordance with IFRS requires the use of estimates and assumptions
to be made in applying the accounting policies that affect the
reported amounts of assets, liabilities, revenue and expenses and
the disclosure of contingent assets and
liabilities. The estimates and related assumptions are based on
previous experiences and other factors considered reasonable under
the circumstances, the results of which form the basis for making
the assumptions about the carrying values of assets and liabilities
that are not readily apparent from other sources.
The estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimate is revised if the revision affects
only that period or in the period of the revision and future
periods if the revision affects both current and future
periods.
Significant accounts that require estimates as the basis for
determining the stated amounts include performance obligations
surrounding revenue recognition and the valuation assumptions in
calculating the impairment of goodwill.
REVENUE RECOGNITION
IFRS 15 - Revenue from Contracts with Customers has been applied
for all periods presented within the historical financial
information. The timing of all revenue recognised by the Group
during the reporting period was transferred 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.
No individual customer accounted for more than 10% of
revenue.
During the period under review the Group recognised revenue from
the following activities:
Data and strategic 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.
Activation channels and brand intelligence
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.
BUSINESS COMBINATIONS
Silver Bullet Data Services Group Limited 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 Limited. 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 Limited'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 balance sheet 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
balance sheet 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.
INTANGIBLE ASSETS AND GOODWILL
Goodwill
Goodwill is initially measured at fair value, being 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:
Brand names - Reducing balance basis over 5 years
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 and equipment - Reducing balance over 4 years
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 (or cash-generating unit)
is estimated to be less than its carrying amount, the carrying
amount of the asset (or cash-generating unit) 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 a number of platforms 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. 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.
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.
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, less any impairment losses.
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 low value assets; 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 particular terms of the share options state that they can
only be exercised by employees in the event of an exit where the
company is either sold to a third party, wound up or floated on a
public stock exchange. 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.
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.
INTERIM MEASUREMENT
Costs that incur unevenly during the financial year are
anticipated or deferred in the interim report only if it would also
be appropriate to anticipate or defer such costs at the end of the
financial year.
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of the historical financial information requires
the Directors to make estimates and judgements that affect the
reported amounts of assets, liabilities, costs and revenue in the
historical financial information. 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:
Depreciation and amortisation
The assessment of the useful economic lives, residual values and
the method of depreciating or amortising tangible and intangible
(excluding goodwill) fixed assets requires judgement. Depreciation
and amortisation are 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.
Critical accounting judgements:
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.
Impairment of intangible and tangible fixed assets
Impairment tests have been undertaken in respect of goodwill,
intangible and tangible 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.
3. Operating segments
IFRS 8 requires that operating segments be identified on the
basis of internal reporting and decision-making. The Group has
three 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.
Six months ended Six months ended
30 June 2021 30 June 2020
Revenue Gross Revenue Gross
profit profit
GBP GBP GBP GBP
Data, strategic, and activation
services 1,656,110 1,385,646 1,282,591 1,012,207
Brand intelligence 12,784 (140,845) - -
Total 1,668,894 1,244,801 1,282,591 1,012,207
---------- ------------ ---------- ------------
EBITDA (3,676,714) (2,285,047)
============ ============
4. Exceptional items
Six months Six months
ended ended
30 June 30 June
2021 2020
GBP GBP
Professional fees relating 508,821 -
to the IPO
Business combination expenses - 53,235
508,821 53,235
=========== ===========
5. Income tax
A deferred tax asset in respect of the Group's cumulative losses
to date has not been recognised due to the uncertainty of the
timing of future loss relief. Deferred tax movements during the
period relate solely to the increase in value of acquired
intangible fixed assets.
Research and development tax relief claims under the SME scheme
are submitted at each financial year end. Anticipated tax credits
for the period under review totalling GBP180,000 are held within
other debtors.
6. 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.
Six months Six months
ended 30 ended 30
June 2021 June 2020
GBP GBP
Loss after taxation
Losses before share option charges 3,269,405 1,694,486
Share option charges 519,038 367,995
Total losses after taxation attributable
to shareholders 3,788,443 2,062,481
----------- -----------
Number of shares
Weighted average number of ordinary
shares 8,516,470 4,975,876
Dilutive effect of in-the-money
share options 1,624,517 121,366
Diluted weighted average number
of shares 10,140,987 5,097,242
----------- -----------
Earnings per share
Basic earnings per share (0.44) (0.41)
Diluted earnings per share (0.44) (0.41)
As options are antidilutive, the diluted EPS is the same as the
basic EPS in this situation.
7. Goodwill and intangible assets
Customer Development Brand Names Goodwill Total
lists Costs
GBP GBP GBP GBP GBP
COST
At 1 January 2020 595,708 754 84,999 4,703,843 5,385,304
Additions - 419,154 - - 419,154
Impairment - - - (15,374) (15,374)
At 30 June 2020 595,708 419,908 84,999 4,688,469 5,789,084
--------- ------------ ------------ ---------- ----------
At 1 July 2020 595,708 419,908 84,999 4,688,469 5,789,084
Additions - 638,262 - - 638,262
Impairment - - (84,999) (358,247) (443,246)
At 31 December 2020 595,708 1,058,170 - 4,330,222 5,984,100
--------- ------------ ------------ ---------- ----------
At 1 January 2021 595,708 1,058,170 - 4,330,222 5,984,100
Additions - 635,086 - - 635,086
At 30 June 2021 595,708 1,693,256 - 4,330,222 6,619,186
--------- ------------ ------------ ---------- ----------
AMORTISATION
At 1 January 2020 64,936 - 23,995 - 88,931
Amortisation charge 74,463 22,356 8,500 - 105,319
At 30 June 2020 139,399 22,356 32,495 - 194,250
--------- ------------ ------------ ---------- ----------
At 1 July 2020 139,399 22,356 32,495 - 194,250
Amortisation charge 74,464 174,942 8,500 - 257,906
Impairment - - (40,995) - (40,995)
At 31 December 2020 213,863 197,298 - - 411,161
--------- ------------ ------------ ---------- ----------
At 1 January 2021 213,863 197,298 - - 411,161
Amortisation charge 74,464 127,518 - - 201,982
At 30 June 2021 288,327 324,816 - - 613,143
--------- ------------ ------------ ---------- ----------
NET BOOK VALUE
At 30 June 2020 456,309 397,552 52,504 4,688,469 5,594,834
========= ============ ============ ========== ==========
At 31 December 2020 381,845 860,872 - 4,330,222 5,572,939
========= ============ ============ ========== ==========
At 30 June 2021 307,381 1,368,440 - 4,330,222 6,006,043
========= ============ ============ ========== ==========
8. Share capital and premium
Movements in issued share capital and share premium accounts
during these periods are summarised below:
30 June 2021 31 December 30 June 2020
2020
Ordinary share No. GBP No. GBP No. GBP
capital
Issued and fully
paid
Ordinary 13,418,982 134,190 - - - -
Ordinary A - - 1,546,797 1,547 1,546,797 1,547
Ordinary B - - 35,448 35 35,448 35
Ordinary C - - 10 50 10 50
Ordinary D - - 464,689 465 464,689 465
Ordinary G - - 5,379,104 5,379 3,667,593 5,127
Ordinary H - - 780,093 780 780,093 780
13,418,982 134,190 8,206,141 8,256 6,494,630 8,004
============= ============ ============ ============ ============ ============
On 1 April 2021 the Company filed a capital restructure which
converted all issued A, B, D, G, and H shares in to one class of
Ordinary Share capital with equal voting rights participation in
dividends.
On 7 May 2021 a 9:1 bonus issue was approved by shareholders
with a simultaneous consolidation of share capital from a nominal
value of GBP0.001 to a nominal value of GBP0.01.
On 7 May 2021 a capital reduction was also completed reducing
the share premium account by GBP38,425,667 with the balance being
credited to the profit and loss reserve.
On 19 May 2021 all C shares were repurchased by the company at
nominal value.
9. Share Option Reserve
30 June 31 December 30 June
2021 2020 2020
GBP GBP GBP
Share Option reserve 812,332 1,192,653 1,183,727
812,332 1,192,653 1,183,727
======== ============ ==========
Silver Bullet Data Services Group PLC operates a programme for
employees of its subsidiaries to acquire shares in the company
under an EMI scheme.
The number and weighted average exercise price of share options
during the year were as follows:
30 June 2021 31 December 2020 30 June 2020
Weighted Share Weighted Share Weighted Share
average options average options average options
exercise exercise exercise
price price price
GBP No. GBP No. GBP No.
Outstanding at start
of period 3.05 250,153 3.35 220,499 3.05 80,359
Forfeited/expired
during period (0.89) (128,761) - - - -
Granted during period 1.34 1,618,496 0.79 29,654 3.53 140,140
Exercised during
period (0.37) (29,904) - - - -
Outstanding at end
of period 1.65 1,709,984 3.05 250,153 3.35 220,499
---------- --------- ---------
10. Related party transactions
Fluency Media Limited: is a related party to the group by virtue
of having a common Director. Consultancy services were provided
during the six months ended 30 June 2021 totalling GBP90,000 (six
months to June 2020: GBP50,000). There were no amounts outstanding
at the reporting date (2020: GBP12,000).
Purple Lime Accountancy Limited: is a related party to the group
by virtue of having Directors closely related to Key Management
Personnel of the Group. Accountancy and finance services were
provided during the six months ended 30 June 2021 totalling
GBP69,559 (six months ended June 2020: GBP50,063). Amounts
outstanding at 30 June 2021 totalled GBP7,177 (June 2020:
GBP7,862.
Umberto Torrielli : A director of the Group company as of 29
October 2020 relocated to the USA in order to establish a new
presence in this territory. For this purpose, a loan was issued of
GBP150,000 which is held within other debtors at the end of the
reporting period (June 2020: GBPnil).
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END
IR SFAFWUEFSELU
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September 20, 2021 02:00 ET (06:00 GMT)
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