TIDMD4T4
RNS Number : 3991D
D4T4 Solutions PLC
29 June 2021
29 June 2021
D4t4 Solutions Plc
Preliminary Results for the year ended 31 March 2021
Revenues up 4.6% as transition to ARR model continues
D4t4 Solutions Plc (AIM: D4T4, "the Group", "D4t4"), the data
solutions provider, announces its preliminary results for the year
ended 31 March 2021.
Financial Highlights
-- Revenues up 4.6% to GBP22.8 million (2020: GBP21.8 million)
-- Annual recurring revenue (ARR) up 11% to GBP10.6 million (2020: GBP9.55 million)
-- ARR as percentage of total revenue increased to 47% (2020: 45.2%)
-- Gross profit margin increased to 62.4% (2020: 60.7%)
-- Adjusted profit before tax of GBP4.45 million (2020: GBP5.05 million)
-- Statutory profit before tax of GBP3 million (2020: GBP4.9 million)
-- Adjusted fully-diluted EPS of 9.52p (2020: 11.19p)
-- Diluted basic EPS of 6.75p (2020: 11.04p)
-- Proposed final dividend of 2.0p (2020: 1.9p), total dividend for year 2.81p (2020: 2.67p)
-- Year-end cash position GBP14.24 million (2020: GBP12.77 million)
-- Total Assets of GBP41.9 million (2020: GBP38.9 million).
Operational Highlights
-- Delivery on key strategic objectives; increased revenues from
Celebrus family of products, continued successful transition to ARR
model, international expansion and investing in next generation of
Celebrus products
-- Broadened vertical and geographic reach of new contracts -
UK, Europe, Middle East, North America and Pacific Rim, across
financial services, health, telecommunications and consumer
organisations
-- Strengthened relationships with key industry partners
Teradata, SAS, Pegasystems and Dell directly and via
partnerships
-- Sales of the Celebrus product family of software and services
now make up 81% of total Group revenue (2020: 80%).
Post period-end
-- Launched Celebrus Fraud Data Platform (FDP) for real time
detection of payment, account opening and remote account takeover
fraud - accessing a growing $18 billion market
-- Launched updated Celebrus Customer Data Platform (CDP) with
profile builder and first party Identity graph features
-- Launched Celebrus Customer Data Management (CDM) mass file deletion alert detector software
-- Trading during the new financial year has been in line with
the Board's expectations with strong levels of both existing and
new client activity.
Outlook
-- Strategic focus is delivering good growth and significant progress on transition to ARR
-- Continued leadership of technology segment, through
innovation and customer and partner led development
-- Successful geographic expansion and focus on building new
partner relationships in broader range of verticals, particularly
to support roll out of FDP
-- Entered current financial year with strong momentum - new
product launches alongside digital transformation tailwinds.
Pete Kear, CEO of D4t4 Solutions commented:
"D4t4 has performed strongly during the year, despite the
difficult circumstances, growing revenues by 4.6% whilst also
making significant progress in the transition to more visible and
better quality earnings, with our key ARR metric advancing 11% in
the year.
Throughout FY21 we have continued to innovate; the recent
addition of the Fraud Data Platform to the Celebrus product family
provides access to a growing $18 billion risk and fraud market and
demonstrates the strength of our creative and technical talent. We
have also grown geographically, deepened our existing relationships
with strategic partners and developed a robust pipeline of new
business as demand for enterprises' digital transformation
increases.
We have entered the new financial year in a strong position
after a record second half and are well positioned for continued
delivery in the year ahead."
Enquiries
D4t4 Solutions Plc +44 (0) 1932 893333
Peter Kear, Chief Executive Officer moreinfo@d4t4solutions.com
Bill Bruno, Deputy Chief Executive
Officer
Nitil Patel, Interim Chief Financial
Officer
finnCap (Nominated Adviser & Joint
Broker)
Julian Blunt / Edward Whiley, Corporate
Finance +44 (0) 20 7220
Alice Lane, ECM 0500
Canaccord Genuity (Joint Broker) +44 (0) 20 7523
Simon Bridges / Andrew Potts 8000
Instinctif Partners +44 (0) 20 7457
Rozi Morris / Hannah Campbell 2020
D4t4Solutions@instinctif.com
About D4t4 Solutions plc
D4t4 Solutions plc (www.d4t4solutions.com) provides data
solutions through its Celebrus suite of products and services,
which is comprised of two distinct complementary offerings - its
proprietary Customer Data Platform (CDP), Customer Data Management
(CDM) solution, and the newly launched Fraud Data Platform (FDP).
The Celebrus family of products offer data capture, data migration,
data synchronisation, data management and data monitoring.
Celebrus CDP is an enterprise software product which captures
customer behaviour in real time across all digital channels to
enable a range of applications including identity, customer
analytics, personalised marketing, data science, and
advertising.
Celebrus CDM is an integrated platform that automates the
ingestion, integration, transformation, and delivery of customer
data from streaming, persisted or historical sources, whether as an
appliance on-premises or in the cloud, to deliver real-time,
unified, and trusted multidimensional views of customer data for
personalisation, risk, fraud, analytics, and recommendation
applications.
Celebrus FDP provides a single source of truth for digital data
across all devices to allow organizations to catch the fraudster
before the fraud. Backed by behavioural biometrics and analytics,
combined with the industry's most complete first-party solution to
digital identity, the Celebrus FDP protects business and their
customers from the growing threat of digital fraud around the globe
in partnership with leading fraud management solutions.
The Group has offices in the UK, USA, India and Australia with
employees across the UK, US, Europe, India and Australia. D4t4's
blue chip global customers are largely within the financial
services, retail and consumer sectors.
Celebrus, the company's flagship first-party product suite, is
fully compliant with all major data privacy regulations and the
Group is accredited to ISO27001: Information Security
Management
Chairman's statement
Despite the unprecedented and challenging circumstances of the
last year, I am pleased to report that D4t4 Solutions has continued
to deliver on its strategic objectives - increasing revenues from
our Celebrus family of software products and continuing the
transition to an Annual Recurring Revenue model (ARR). This has led
to increased revenue visibility and better-quality earnings.
We have continued to invest in our existing Celebrus Customer
Data Platform (CDP) and following positive market soundings
invested in the development of the Celebrus Fraud Data Platform
(FDP) which has been launched in June 2021.
Our geographic expansion has continued, and we have expanded and
deepened our partner relationships in existing and different
verticals. I am very pleased with the progress made and can
confidently confirm the year has been
a strong one for D4t4, building the foundations for further growth.
D4t4's financial performance in the year was ahead of our
expectations, reflecting the strength of our product offering and
partner relationships, as well as the fundamental shift of
businesses online and the essential part we play in that digital
transformation. However, the global pandemic situation inevitably
forced some customers to focus on internal challenges, resulting in
some client projects and new initiatives being paused or slowed.
This had a modest impact on top line growth in 2020/21.
We enter the new financial year with positive market tailwinds
and continue to proactively develop our product offering so to
empower clients to maximise the value gained from their customer
data, with the objective of delivering major uplifts in terms of
their revenue and profitability.
Our position
During the year, global events have increased the speed at which
companies have transitioned their businesses online and the volume
of data that is now being produced. Enterprises are increasingly
focused on improving and differentiating their customer experience
in a crowded marketplace. The expectations and sophistication of
successful businesses is creating increased demands for products
which capture customer experience in real time across a wide
variety of platforms. This is resulting in a real opportunity, as
our products provide that real
time data to enable and improve these experiences in a relevant, compliant and personalised way.
This unique real time capability, along with global digital
transformation is helping us to drive our reach into new sectors
and verticals. Customers and partners are finding that our
capabilities can provide vital functionality beyond our traditional
core focus of financial services and into the retail,
automotive, telecoms and healthcare sectors.
It is our strong partner relationships and customer-led approach
that have driven our innovation in R&D. New releases of
Celebrus CDP have provided key solutions for clients such as
seamless integration with other software, natural language and
machine learning capabilities and reductions in data storage
costs.
Research into other markets where real time, highly granular
client interaction would be value enhancing has led us to invest in
a new fraud detection and identity verification tool. This product
has been launched, post period end. Known as Celebrus FDP, this
product is built on the foundations of the Celebrus CDP and
represents a completely new vertical for us. This product has a
huge addressable market and is the result of nearly two years of
design, development and testing.
Although the addressable market for the Celebrus FDP is
incremental with client spend often controlled by a different
budget holder to the rest of the Celebrus offering, its core focus
is Financial Services where we already have strong customer
references and a strong following. This, combined with the
underlying similarities in code with the already successful
Celebrus CDP product, gives me a high level of confidence that the
FDP opportunity represents a high value, low risk business
opportunity worthy of significant investment to build a parallel
and highly complementary Annual Recurring Revenue stream.
Geographic expansion has also been an important driver. During
the year we opened a new APAC office in Sydney, Australia and have
added to our operations in Cary, US and Chennai, India.
Global pandemic
On behalf of the Board, I would like to say how grateful I am to
our leadership team and staff across the world for their commitment
to the business and the way they have responded to the challenges
of the pandemic.
Despite having to close our offices at short notice, our staff
have been able to work from home with little interruption and have
maintained the highest levels of customer service. Following the
lockdowns across the world, the Board reviewed the impact on all
roles across the business. Although a few roles were not required
during the office closures, the Group did not use taxpayer funded
furlough schemes in any geographies.
Whilst we are a technology driven company, we are also a people
led business and innovation is driven from personal interaction
across the firm and with customers, so we look forward to returning
to a more hybrid working model. We envisage this as a combination
of home and office working, whilst optimising opportunities for
creative interaction, communication and efficient working.
Board changes
In January 2021, John Lythall announced his intention to retire
as a Non-Executive Director at the end
of March 2021. Formerly CEO of D4t4 until he stepped down in
2016, John co-founded the business along with Peter Kear and has
been instrumental in the Group's development. We wish him the very
best for his retirement.
In February 2021, Charles Irvine, CFO, announced his decision to
leave the Group to pursue another opportunity outside of the public
markets. Charles has been replaced by interim CFO Nitil Patel and
the search for a permanent CFO is ongoing.
After the period end, in April 2021, Peter Kear, CEO, announced
his plans to retire by June 2022. Peter's energy, leadership skills
and strength of personality have been critical to the success of
D4t4 since he co-founded the Group back in 1985 and became CEO in
2016. On behalf of the entire Board, I would like to thank Peter
for all his contributions to the business and would like to say a
personal thank you for the professional manner in which he has
handled the process and contributed pro- actively to the search for
his successor.
Following an extensive search process led by Monika Biddulph,
Chair of the Nominations Committee, I am delighted that Peter will
be replaced by Bill Bruno, previously Vice President of D4t4's US
business. I am confident that following a well-managed handover the
business will continue to thrive and develop a host of new global
opportunities under Bill's leadership.
Prior to joining D4t4 in 2018, Bill was CEO of Stratigent
between 2009-2013 until it was acquired by Ebiquity. He then served
as Ebiquity's CEO (North America) until 2018. Bill's wealth of
industry knowledge and excellent track record in the digital data
market and in growing an international digital media, analytics and
intelligence business will be of great benefit to D4t4 as it moves
into the next phase of its development.
Additionally, we are intending to create a new Group Operations
Board below the main D4t4 Board which will consist of Jim Dodkins
(CTO), Mark Boxall (COO) and a number of our existing senior
managers; accordingly, Jim and Mark will both step down from the
D4t4 Board on the 30th of June 2021 to lead the formation of the
Group Operations Board. This will enable them to focus entirely on
the execution and delivery of Group strategy.
I would personally like to take this opportunity to thank Jim
and Mark for all their hard work and support and I know that they
will ensure the success of the new management structure.
This gives the opportunity to streamline the main D4t4 Board to
allow increased focus on corporate governance, group strategy
formulation as well as investor and wider stakeholder relations.
From the 1st of July 2021 the Board of D4t4 will consist of the
Chief Executive Officer, the Non-Executive Chairman, two
Non-Executive Directors and (upon making a permanent appointment)
the Chief Financial Officer.
Dividend
Notwithstanding the global pandemic, the Board has maintained
dividend payments during FY21 reflecting the financial strength of
the Group, its significant liquidity position and the Board's
longer term confidence in the performance of the business.
The Board recognises the importance of returns to shareholders
so we are delighted today to be recommending the payment of a final
dividend, subject to shareholder approval at the 2021 AGM, of 2.0p
per share (2020: 1.9p). The final dividend is expected to be paid
on 17 September 2021 to shareholders on the register as at the
close of business on 13 August 2021.
The Board expects to maintain a dividend payment in line with
adjusted profit before tax and cash generation metrics, though
always subject to the constant assessment of the impact of the
global pandemic on the Group.
Outlook
Despite the obvious challenges of the pandemic the business has
continued to thrive over the last year as evidenced by our
financial and operational performance, proving that our robust
strategy continues to deliver. Our high level of customer
retention, excellent customer references and increasing recurring
revenue visibility position the Group well.
We enter FY22 in a solid financial position, with high profit
margins, a strong cash position with no debt and a well proven
business model. Trading during the new financial year has been in
line with the Board's
expectations with strong levels of both existing and new client activity.
The Board is excited about the growth opportunity represented by
the new FDP product and has now launched a comprehensive program to
market the product and build the associated team to ensure a
successful global launch during FY22. Whilst FDP is only expected
to drive modest initial recurring revenues this year c ustomer and
partner interest levels are already encouraging, with several
currently using and evaluating the technology.
The Board remains highly confident in the Group's strategy; our
underlying business is delivering against our key KPI's and
performing well, and D4t4 is well positioned in its key markets.
The current revenue visibility, order book and pipeline of
opportunities all bode well for the future.
Peter Simmonds
Chairman
29 June 2021
Chief Executive Officer's statement
The year to 31 March 2021 was one of good progress for D4t4,
despite the impact of the global pandemic. After a slightly slower
start to the year while customers got used to the "new normal" way
of conducting business remotely, our customers accelerated their
efforts to affect their digital business transformations, with an
industry report (Dynatrace) suggesting digital transformation
accelerated by 89% in the last 12 months, with further momentum
expected.
The Group delivered revenue and adjusted profit before tax of
GBP22.8 million and GBP4.5 million respectively, ahead of the
Board's prior expectations and with significant progress on our
strategy of migrating towards an ARR model. ARR increased by 11%
year on year to GBP10.6 million (2020: GBP9.55 million), providing
more revenue visibility and better quality earnings. Statutory
profit before tax was GBP3.0 million which was in line with
expectations.
We are proud to have achieved this without any assistance from
government schemes, with no staff furloughed and whilst continuing
to pay all relevant taxes.
With the emphasis on businesses' online offerings growing hugely
due to the global pandemic, we saw strong demand for our Celebrus
family of products. Being able to optimise a customer's online
experience and harness the data generated in real time have become
ever more important as our clients seek to differentiate themselves
and their digital offering in a crowded marketplace.
This demand resulted in a healthy sales pipeline, with new
contract wins in the healthcare and telecoms sectors broadening our
customer base beyond our traditional financial and consumer
markets.
Constantly innovating, we have continued to invest in the
development of our products and were proud to launch both Celebrus
CDP 9.2 and 9.3 versions during the year. These included newly
embedded machine learning and natural language processing
capabilities as well as cloud connectivity, reducing data storage
costs for clients.
This drive for innovation and the current emphasis on the
importance of identity, privacy and data protection has led to the
development of our new Celebrus Fraud Data Platform (FDP) which was
launched post period-end, taking D4t4 into an exciting new area of
fraud prevention and security, along with its associated
verticals.
Strategy and position
We have delivered real progress on our aim to transition towards
a predominantly ARR model which has had a positive impact on the
visibility and stability of our revenue. The shift is being driven
by new product innovations and uptake, although the pace is
ultimately driven by customer requirements.
We are progressing on our strategy of growing product revenues
within our Celebrus family of products. This has been enabled by
broadening our offering to target additional verticals such as
healthcare, retail, telecoms, automotive and travel, as well as
developing innovative capabilities in new versions of our Celebrus
CDP software.
Global Reach
We have focused on international expansion during the year,
establishing a presence in APAC, as well as investing in our
operations in the US and India, which will all be key drivers going
forward.
With customers extending the use of our products into additional
territories, our software is now used in 27 countries around the
globe.
Sales overview
During the year, we saw new international sales wins from
customers across Europe, the US, Asia and the Middle East.
These were not only in our core areas of financial services, but
also included the automotive, online retail and telecoms sectors.
The majority of these contracts are on an ARR basis, helping to
drive our ARR transition. Existing clients were also key customers
over the year, often adding geographical expansions and additional
capabilities to current contracts.
Revenue for the year grew by 4.6% to GBP22.8 million (2020:
GBP21.8 million) with adjusted profit before tax of GBP4.5 million
(2020: GBP5.0 million). Sales of our Celebrus product family of
software and services now make up 81% of total company revenue
(2020: 80%). As a result of the improved quality of revenues, gross
margins also improved to 62.4% (2020: 60.7%).
We closed the year with GBP14.2 million in cash up 11% on last
year's GBP12.8 million, and due to the successful fourth quarter,
we ended the year with GBP10.2 million in debtors, which is
expected to unwind by the next reporting date.
As we invest behind our newly launched Celebrus FDP fraud
product, we expect an increase in operating expenditure as we
recruit specialists in this new sector and increase our marketing
spend for our new product family.
Partnerships
Our strategic industry partnerships continue to be a focus for
future growth and providing geographical reach and business
diversity beyond our own core verticals and territories. During the
year we have strengthened relationships with key partners including
Teradata, Pegasystems, SAS and Dell, working together to innovate
and to ensure seamless product integration.
This resulted in the development and launch of a joint
innovation with Teradata in April 2020. Celebrus CDP's real time
capabilities were integrated with Teradata's Vantage CX software,
enabling it to provide customer behaviour data instantly from
across all digital channels to create personalised and optimised
customer experiences, at scale.
Post period-end, D4t4 also launched a key joint update with
Pegasystems to its Pega Customer Profile Designer platform,
integrating Celebrus CDP to generate complete, compliant,
individual-level digital behaviour data, enabling enterprises to
create relevant, contextualised offers and messaging in real-time,
for every customer.
Channel partner sales contribute a major proportion of our
revenues, so working closely with our partner base to provide
solutions driven by customer need is a priority. Further
collaborations with our strategic partners are underway and are
expected to continue to provide valuable product innovations and
updates in the short to medium term.
Markets and opportunities
The benefits of this partner focus are demonstrated by the new
opportunities that arise - we are being introduced to different
user groups within partners and customers which want to use the
depth and quality of our data in new ways. One particular area has
been in risk and fraud, which has driven both the development of
our new Celebrus FDP software and the requirement for new strategic
partnerships to exploit the use of our software and data in those
areas.
Technology platform leadership
The evolution of our Celebrus CDP software has continued during
the year and we are proud that it remains the leading real time,
multi-channel digital data collection platform, used by many of the
world's largest financial services and consumer organisations.
This drive for excellence and innovation has resulted in the
launch of our completely new capability, the Celebrus Fraud Data
Platform (FDP).
Using automated behavioural biometrics to eliminate fraud around
the three core fraud use cases of Account Opening, Account Takeover
and Payment Processing, FDP is able to identify potentially
fraudulent signals in real-time so as to pre-empt occurrence,
enabling enterprises to improve their fraud management processes,
avoid losses, reduce reputational damage and help with
identification of fraudsters even before a fraud has taken
place.
FDP helps businesses protect their customers through:
-- Behavioural biometrics and analytics which provide seamless
detail about users as they navigate digital channels;
-- Insights that signal unusual online interactions in real-time
to identify fraud across the customer journey;
-- Integration to existing fraud detection and investigation
systems to identify and prevent multiple fraud types;
-- Complete control to adapt quickly to evolving threats.
The launch will incur additional expenditure in the current
financial year as the new product will be supported by a new
specialist fraud team which is being recruited and we will also be
supplementing our installed base customer success team with a
number of new hires around the globe.
New board structure
As previously announced, I will be retiring by the end of June
2022 with Bill Bruno (currently Deputy CEO) assuming the CEO role
in due course. Bill and I are currently working closely together to
ensure an orderly transition over the coming months, and I will
continue to support him after the formal handover through to 30
June 2022.
Additionally, we are intending to create a new Group Operations
Board below the main D4t4 Board which will consist of Jim Dodkins
(CTO), Mark Boxall (COO) and a number of our existing senior
managers; accordingly, Jim and Mark will both step down from the
D4t4 Board on the 30th of June 2021 to lead the formation of the
Group Operations Board. This will enable them to focus entirely on
the execution and delivery of Group strategy.
I would personally like to take this opportunity to thank Jim
and Mark for all their hard work and support during the last six
years while I have been CEO and I know that they will ensure the
success of the new management structure.
This gives the opportunity to streamline the main D4t4 Board to
allow increased focus on corporate governance, group strategy
formulation as well as investor and wider stakeholder relations.
From the 1st of July 2021 the Board of D4t4 will consist of the
Chief Executive Officer, the Non-Executive Chairman, two
Non-Executive Directors and (upon making a permanent appointment)
the Chief Financial Officer.
Looking forward
D4t4 has performed well during a challenging year. Our strategic
focus continues to pay off with good growth in the business and
significant progress in the transition to ARR. We continue to lead
in our technology segment, through innovation and through customer
and partner led development.
We are expanding geographically and are working to develop new
partner relationships in different verticals.
As demonstrated by the number new product launches alongside
digital transformation tailwinds, we have entered the current
financial year with strong momentum. With the launch of our new
fraud offering, and with our improved revenue visibility, order
book and pipeline, we are optimistic about the year ahead.
Peter Kear
Chief Executive Officer
29 June 2021
Chief Financial Officer Report
Income statement
Revenue
The Group achieved continuing operations revenue growth of 4.6%
despite the impact of the global pandemic to working practices.
Revenue was GBP22.8 million (2020: GBP21.8 million). The quality of
the revenue growth is evidenced by increased Annual Recurring
Revenues (ARR) of 11.0% to GBP10.6 million (2020: GBP9.55
million).
The Group maintained its international growth with non-UK
revenues accounting for 87% of the total revenue for the year
(2020: 81%).
As the Group continues the migration to ARR, emphasis on CDP and
CDM continues. As the new Celebrus Fraud Data Platform (FDP)
product gains traction we expect it to achieve the same prominence,
especially to new clients and/or partners. Sales of the Celebrus
product family of software and services now make up 81% of total
Group revenue (2020: 80%).
Gross margin
The gross margin for continuing operations was 62.4% (2020:
60.7%). The increase in gross margin comes from the growth in
revenue from CDP sales. The Group continues to see value in both
the direct and indirect models of selling and hence will continue
to invest in building long term ARR.
Operating expenses
Adjusted operating profit before tax from continuing operations
decreased by 11.8% from GBP5.1 million to GBP4.5 million. Operating
expenses as a percentage of revenues moved from 38% to 49%. The
main cost categories were increased employment costs, share based
payments and foreign exchange expenses in the year.
The administration expenses increase relates to additional
staff, salaries, bonuses and one-off FDP associated expenses
(GBP1.2 million), foreign exchange charge in the year (GBP0.7
million) plus a comparative year on year movement from a foreign
exchange credit of GBP0.4 million, share based payments (GBP0.2
million), director remuneration (GBP0.2m) and other costs (GBP0.2
million). This has resulted in an increase of GBP2.9m to GBP11.2
million for the year (2020: GBP8.3 million).
The addition of new staff and the retention, motivation and
reward for success of our existing employees are critical for the
Group and these additional expenses reflect these aims and the
current employment environment. This and the additional costs
associated with the development of our new FDP platform contributed
to the extra administration expenses. Further, the foreign exchange
expense is a consequence of the appreciation of the pound against
dollar denominated contracts, which the Group will look to manage
going forward, utilising forward foreign exchange contracts.
Taxation
Profitability in the year was lower than last year and as a
consequence the tax liability decreased to GBP0.3 million (2020:
GBP0.5 million). With an effective tax rate of 9%, the Group
continues to utilise R&D and Patent Box tax credits. In
addition, the Group benefited from the tax impact of share options
being exercised in the year.
Earnings per share
Basic EPS for the year was 6.88p (2020: 11.12p) and diluted
basic EPS was 6.75p (2020: 11.04p). The basic figure has been
calculated using the weighted average number of shares in issue
being 40,235,856 (2020: 39,976,957) and the diluted figure using
41,007,252 (2020: 40,276,951).
Adjusted basic EPS was 9.70p (2020: 11.28p) and adjusted diluted
EPS was 9.52p (2020: 11.19p) following adjustments for
amortisation, share based payments, exceptional items, foreign
exchange expense and tax on these adjustments as set out in note 5
below.
Dividend
The Board is today proposing a final dividend, subject to
shareholder approval at the 2021 AGM, of 2.0p per share (2020:
1.9p). The final dividend is expected to be paid on 17 September
2021 to shareholders on the register as at the close of business on
13 August 2021.
Financial Position
Intangibles
Goodwill of GBP8.7 million (2020: GBP8.7 million) results from
the acquisition of Celebrus (Speed- Trap) in 2015 with the net
balance of GBP0.87 million (2020: GBP0.96 million) of other
intangibles representing purchased IPR, trade name and capitalised
development costs. The Group expenses the majority of its R&D
costs and capitalised GBP0.2 million in the year (2020: GBP0.2
million).
Right of use Assets
The Group has applied IFRS 16 Leases for the year commencing 1
April 2020 as it was immaterial for the previous financial
year.
The Group has applied the modified approach from 1 April 2020
but has not restated comparatives for the year ended 31 March 2020
as permitted under the specific transitional provisions in the
standard. The net asset value at year end was GBP0.26 million
(2020: GBPnil).
Working capital
The Group had strong cash management in the year with net cash
generated from continuing operations of GBP3.3 million (2020:
GBP2.4 million) an increase of 37.5%. The cash balance at the year
end was GBP14.2 million (2020: GBP12.8 million).
The Group continues to be debt free and maintains a robust
financial position following a full year of the global pandemic and
with no recourse to any government support schemes. Investing
activities increased in the year from GBP0.2 million to GBP1.7
million reflecting cash outflow on dividends paid and net purchase
of own shares in the year.
Trade receivables have grown by 27.5% in the year to GBP10.2
million (2020: GBP8.0 million), reflecting revenue growth and
timing differences at year end in relation to an outstanding debt
received after the year end. Overall receivables have grown 31.9%
due to the increases mentioned earlier and accrued income of GBP2.7
million (2020: GBP1.5 million). Inventories fell significantly to
GBP0.1 million (2020: GBP1.3 million) as the Group delivered goods
before the year end.
Trade payables and accruals decreased in the year to GBP4.1
million (2020: GBP4.8 million) as the Group continues to pay its
suppliers on due dates. Deferred income increased significantly by
53.6% to GBP6.3 million
(2020: GBP4.1 million) reflecting growth in ARR.
Purchase of own shares
During the year, the Group increased shares held in Treasury to
191,498 (2020: 159,133).
Equity
The principal increase in the year was retained earnings growing
by GBP1.7 million to GBP20 million (2020: GBP18.3 million). As at
31 March 2021 the Group had GBP30.9 million (2020: GBP29.3 million)
attributable to the shareholders of the company.
Total Assets
The Group ended the year with total assets of GBP41.9 million
(2020: GBP38.9 million) an increase of GBP3 million.
Nitil Patel
Interim Chief Financial Officer
29 June 2021
Consolidated income statement for the year ended 31 March
2021
2021 2020
GBP'000 GBP'000
----------- -------------------- -------------------------- ------------- --------
Continuing operations
Revenue 22,792 21,748
Cost of sales (8,566) (8,537)
==================== ========================== ============= ========
Gross Profit 14,226 13,211
Administration
expenses (11,234) (8,343)
Other operating
income 58 58
==================== ========================== ============= ========
Profit from operations 3,050 4,926
Finance income 25 43
Financing (32) -
=========== ==================== ========================== ============= ========
Profit before
tax 3,043 4,969
Tax (274) (522)
==================== ========================== ============= ========
Attributable to equity holders
of the parent 2,769 4,447
--------------------------------- -------------------------- ------------- --------
Earnings per share from continuing
operations attributable to the
equity holders of the parent
Statutory
Basic 6.88p 11.12p
Diluted 6.75p 11.04p
==================== ========================== ============= ========
Consolidated statement of comprehensive income for the year ended
31 March 2021
2021 2020
GBP'000 GBP'000
----------- -------------------- -------------------------- ------------- --------
Attributable to equity holders
of the parent 2,769 4,447
Other comprehensive income:
Items that will not be reclassified to
profit or loss
Gains on property revaluation 70 71
Exchange differences on translation
of foreign operations 61 24
================================================ ============= ========
Total comprehensive income for the year
attributable
to equity holders of the parent 2,900 4,542
--------------------------------- -------------------------- ------------- --------
Consolidated statement of changes
in equity attributable to Equity
Holders of the Parent for the year
ended 31 March 2021
Share Share Merger Revaluation Own Equity Retained Total
capital premium reserve reserve shares reserve earnings GBP'000
Balance at 1 April 2019 794 2,624 5,977 1,099 (1,127) 10 15,463 24,840
Dividends paid - - - - - - (1,235) (1,235)
Purchase of own shares - - - - (69) - - (69)
Issue of new shares -
exercise of share options 14 741 - - - - - 755
Settlement of share-based
payments - - 4 - 856 (3) (516) 341
Share-based payment charge - - - - - - 97 97
Deferred tax on
outstanding
share options - - - - - (7) - (7)
Transactions with equity
holders 14 741 4 - 787 (10) (1,654) (118)
=========================== ========= ========= ========= ============ ======== ========= ========== =========
Profit for the year - - - - - - 4,447 4,447
Other comprehensive income - - - 71 - - 24 95
Total comprehensive income - - - 71 - - 4,471 4,542
=========================== ========= ========= ========= ============ ======== ========= ========== =========
Balance at 1 April 2020 808 3,365 5,981 1,170 (340) - 18,280 29,264
Dividends paid - - - - - - (1,090) (1,090)
Purchase of own shares - - - - (868) - - (868)
Settlement of share-based
payments - - - - 666 - (262) 404
Share-based payment charge - - - - - - 276 276
Transactions with equity
holders - - - - (202) - (1,076) (1,278)
=========================== ========= ========= ========= ============ ======== ========= ========== =========
Profit for the year - - - - - - 2,769 2,769
Other comprehensive income - - - 70 - - 61 131
Total comprehensive income - - - 70 - - 2,830 2,900
=========================== ========= ========= ========= ============ ======== ========= ========== =========
Balance at 31 March 2021 808 3,365 5,981 1,240 (542) - 20,034 30,886
--------------------------- --------- --------- --------- ------------ -------- --------- ---------- ---------
Consolidated statement of financial position as at
31 March 2021
2021 2020
GBP'000 GBP'000
------------------------------ ---------- ----------
Non-current assets
Goodwill 8,696 8,696
Other intangible assets 872 956
Property, plant and equipment 4,141 4,099
Deferred tax assets - 283
13,709 14,034
==================================== ========== ==========
Current assets
Trade and other receivables 13,362 10,137
Tax receivables 414 649
Inventories 129 1,266
Cash and cash equivalents 14,241 12,772
Total Current Assets 28,146 24,824
---------------------------------- ---------- ----------
Total assets 41,855 38,858
================================== ========== ==========
Equity
Share capital 808 808
Share premium account 3,365 3,365
Merger reserve 5,981 5,981
Revaluation reserve 1,240 1,170
Own shares (542) (340)
Retained earnings 20,034 18,280
================================== ========== ==========
Total equity 30,886 29,264
-------------------------------------- ---------- ----------
Current liabilities
Trade and other payables 10,691 9,377
Tax liabilities - -
Lease obligations 83 -
============================== ========== ==========
10,774 9,377
Non-current liabilities
Lease obligations 194 -
Deferred tax liabilities 1 217
195 217
Total liabilities 10,969 9,594
---------------------------------- ---------- ----------
Total equity and liabilities 41,855 38,858
================================== ========== ==========
Consolidated cash flow statement for the year ended 31
March 2021
2021 2020
GBP'000 GBP'000
---------------------------------------------- -------- --------
Cash generated from operations 3,258 3,116
Taxes received / (paid) 80 (738)
=============================================== ======== ========
Net cash generated from operating activities 3,338 2,378
=============================================== ======== ========
Investing activities
Interest received 25 43
Purchase of property, plant and equipment (34) (249)
Capitalisation of development costs (195) (188)
Net cash used in investing activities (204) (394)
=============================================== ======== ========
Financing activities
Dividends paid (1,090) (1,235)
Lease repayments (79) -
Interest paid (32) -
Purchase of own shares (868) (69)
Exercise of share options 404 1,096
Net cash used in financing activities (1,665) (208)
=============================================== ======== ========
Net increase in cash and cash equivalents 1,469 1,776
Cash and cash equivalents at start of
year 12,772 10,996
Cash and cash equivalents at end of year 14,241 12,772
----------------------------------------------- -------- --------
Notes to the financial statements
1. General information
D4t4 Solutions plc is a public limited company incorporated and
domiciled in England and Wales and quoted on the AIM Market, hence
there is no ultimate controlling party.
2. Significant accounting policies
Basis of preparation
The financial statements have been prepared in accordance with
International Accounting Standards adopted by the Companies Act
2006 applicable to companies reporting under International
Accounting Standards.
The financial statements have been prepared under the historical
cost convention, with the exception of land and buildings which is
held at valuation.
The presentation and functional currency of the financial
statements is British Pounds and amounts are rounded to the nearest
thousand pounds.
The financial information contained in this preliminary
announcement does not constitute the Group's statutory accounts for
the year ended 31 March 2021. The statutory accounts for the year
ended 31 March 2021 will be filed with the Registrar of Companies
in due course. The 2021 annual report will be made available on the
Company's website for the purposes of the AIM Rules for Companies;
a further announcement to this effect will be made at the relevant
date, expected to be later in July 2021.
The auditors' report on the Annual Report and Financial
Statements for the year ended 31 March 2020 was unqualified, did
not draw attention to any matters by way of emphasis, and did not
contain a statement under 498(2) or 498(3) of the Companies Act
2006.
Going concern
The Group and Company have sufficient financial resources to
cover budgeted future cashflows, together with contracts with a
number of customers and suppliers across different geographic areas
and industries. As a consequence, the Directors believe that the
Group and Company are well placed to manage their business risks
successfully.
Having reviewed the impact of the global pandemic on the
business, and stress-tested the Group's future plans and cash flow
projections, the Directors are confident that the Group and Company
have adequate resources to continue in operational existence for
the foreseeable future. For this reason, they continue to adopt the
going concern basis in preparing the financial statements .
3. Business and geographical segments
IFRS 8 Operating Segments requires these to be identified on the
basis of internal reports about components of the Group that are
regularly reviewed by the chief operating decision maker to
allocate resources to the segments and assess their
performance.
The Group has four tightly integrated service lines that are
offered to clients. These service lines combine one or more of four
types of revenue to deliver on our core services
Information is presented to the Board on the revenue analysis
below:
-- Product - Own IP
-- Product - 3rd party
-- Delivery services
-- Support and maintenance
All revenue streams are recognised on a point in time basis
apart from Support and maintenance which is recognised over
time.
No allocation of other income and costs to these categories is
made because the Directors consider that any such allocation would
be arbitrary and contract sensitive, as would be any allocation of
assets and liabilities.
The segmental reporting set out below is consistent with that
provided to the Board of Directors.
The segmental reporting analysis is as follows:
Continuing operations
2021 Group
2021 2020
GBP'000 GBP'000
--------- --------
Products - Own IP 9,005 7,658
Products - 3rd party 4,403 4,362
Delivery services 2,886 3,629
Support & Maintenance 6,498 6,099
Revenue 22,792 21,748
Cost of sales (8,566) (8,537)
Gross profit 14,226 13,211
Other operating costs and income (11,176) (8,285)
Investing and financing activities (7) 43
Profit before tax 3,043 4,969
--------- --------
Major customers (partners)
over 10% of revenue 2021 2020
GBP'000 GBP'000 GBP'000 GBP'000
--------- --------- --------- ---------
Customer Customer Customer Customer
1 2 1 2
Products - Own
IP 3,682 1,154 3,855 1,363
Products - 3rd
party 3,775 - 3,401 -
Delivery services 769 - 1,515 2
Support & Maintenance 2,764 1,663 2,616 1,767
Total Revenue 10,990 2,817 11,387 3,132
--------- --------- --------- ---------
Geographical information
Group
2021 2020
GBP'000 GBP'000
----------- --------
United Kingdom 2,983 4,158
Rest of Europe 2,396 3,162
United States of America 16,699 13,327
Others 714 1,101
22,792 21,748
----------- --------
The geographical revenue segment is determined
by the domicile of the external customer.
4 Dividends
2021 2019
GBP'000 GBP'000
--------- ---------
Amounts recognised as distributions
to equity holders
Final dividend for the year
ended 31 March 2020 of 1.9p
(for the year ended 31 March
2019: 2.3p) per share 765 925
Interim dividend for
the year ended 31
March 2021 of 0.81p
(31 March 2020: 0.77p)
per share 325 310
1,090 1,235
--------- ---------
Proposed final dividend for the year ended
31 March 2021 of 2.0p
The proposed final dividend is subject to shareholders'
approval at the AGM and has not been included as a liability
in these financial statements.
5 Earnings per share
The calculation of earnings per share is based on profit
attributable to owners of the parent and the weighted
average number of ordinary shares in issue during the
year.
The adjusted earnings per share figures have been calculated
based on earnings before adjusted items. These have been
presented to provide shareholders with an additional
measure of the Group's year-on-year performance.
Details of the adjusted earnings per
share are set out below:
2021 2020
GBP'000 GBP'000
--------------------- ----------------
Profit attributable to owners
of the parent 2,769 4,447
Amortisation of intangible assets (see
note 7) 279 246
Share-based payment 318 97
Net foreign exchange differences 746 (362)
Restructuring
costs 58 96
Tax on the adjustments (266) (15)
Adjusted profit attributable to owners
of the parent 3,904 4,509
--------------------- ----------------
2021 2020
No. No.
Basic weighted average number of shares,
excluding own shares, in issue 40,235,856 39,976,957
Dilutive effect of
share options 771,396 299,994
Diluted weighted average number of shares,
excluding own shares, in issue 41,007,252 40,276,951
--------------------- ----------------
2021 2020
Pence per Pence
share per share
Basic Earnings per
share 6.88 11.12
Diluted Earnings
per share 6.75 11.04
Adjusted Basic Earnings
per share 9.70 11.28
Adjusted Diluted Earnings
per share 9.52 11.19
6 Goodwill
Group
Cost of goodwill GBP'000
-----------
Balance at 1 April 2019, 31 March 2020 and
31 March 2021 10,952
-----------
Accumulated impairment
charges
Balance at 1 April 2019, 31 March 2020 and
31 March 2021 2,256
-----------
Carrying amount at year
end 8,696
-----------
Allocation of goodwill (Group and
Company) Speed-Trap
Balance at 1 April 2019 and
31 March 2020 100 918 8,696
Balance at 31 March
2021 8,696
-----------
Goodwill acquired in a business combination is allocated at acquisition
to the cash-generating units (CGUs) that are expected to benefit
from that business combination.
Goodwill is not amortised but tested annually for impairment with
the recoverable amount being determined from value in use calculations.
The key assumptions for the value in use calculations are those
regarding the discount rate, growth rates, pre-tax cash flow and
forecasts of income and costs.
The Group assessed whether the carrying value of goodwill was
supported by the discounted cash flow forecasts of the Group based
on financial forecasts approved by management covering a one-year
period, taking into account both past performance and expectations
for future market developments.
Management estimates the discount rate using a pre-tax rate that
reflects current market assessments of the time value of money
and the risks specific to each separate business unit if applicable.
The impairment charge was GBPnil (2020: GBPnil). The recoverable
amount of the CGU is determined from value in use calculations.
Key assumptions used for the value-in-use
calculations
Value in use was determined by discounting future cash flows generated
from the continuing use of the titles and was based on the following
most sensitive assumptions:
* cash flows for 2021/22 were projected based on the
forecast for 2021/22, using the budget as a base and
sensitising in light of the current environment;
* forecasts based on current customer contracts and
gross margins being achieved;
* cash flows for year ending 31 March 2022 were
projected based on the Group forecast for that year
based on the current economic environment in respect
of the global pandemic. For years ending 31 March
2023 onwards, cash flows were prepared using
underlying growth rates of 2% based on a conservative
view;
* cash flows were discounted using the CGU's pre-tax
discount rate of 11.6% (2020: 15%).
Based on the above sensitivity assumptions the calculations disclosed
headroom against the carrying value of goodwill for the CGU. Management
carried out several sensitivity scenarios on the data. These were
based on best estimates under the current economic environment
created by the global pandemic.
Sensitivity to changes
in assumptions
The margins achieved are based on actual margins, the forecast
revenues are based on budget for the current year and an ongoing
2% growth rate.
The discount rate is considered to be the variable with the maximum
impact. Varying this by 20% would still allow the recoverable
amount to exceed the carrying value. Therefore, management is
confident in the assumptions used.
Management has considered the growth rates used in light of the
global pandemic and remains confident that they are reasonable.
Management are satisfied that a reasonable change in the key assumptions
used in assessing the recoverable amounts of the cash generating
unit would not give rise to the recoverable amount exceeding the
carrying value.
7 Other intangible assets
Internally Trade Total
Development generated Purchased name
Costs IPR IPR
Group and company GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------ ----------- ---------- ----------- --- --------
Cost
Balance at 1 April
2019 - 56 1,858 142 2,056
Balance at 1 April
2019 - 56 1,858 142 2,056
Additions 188 188
------------ ----------- ---------- ----------- --- --------
Balance at 1 April
2020 188 56 1,858 142 2,244
Additions 195 - - - 195
============ =========== ========== =========== === ========
Balance at 31 March
2021 383 56 1,858 142 2,439
------------ ----------- ---------- ----------- --- --------
Accumulated amortisation
Balance at 1 April
2019 - 56 929 57 1,042
Amortisation - - 232 14 246
Balance at 1 April
2020 - 56 1,161 71 1,288
Amortisation 33 - 232 14 279
============ =========== ========== =========== === ========
Balance at 31 March
2021 33 56 1,393 85 1,567
------------ ----------- ---------- ----------- --- --------
Carrying amount
Balance at 1 April
2019 - - 929 85 1,014
Balance at 31 March
2020 188 - 697 71 956
Balance at 31 March
2021 350 - 465 57 872
------------ ----------- ---------- ----------- --- --------
The amortisation charge for the year is booked
to administration expenses.
Development Costs are amortised
over 8 years.
The remaining amortisation period for the Purchased IPR is 2 years
(2020: 3 years) and for the Trade name is 4 years (2020: 5 years).
8. Trade and other
receivables
2021 2020
GBP'000 GBP'000
-------- --------
Trade receivables 10,165 7,970
Other debtors 48 66
Prepayments 595 567
Accrued Income 2,554 1,534
13,362 10,137
-------- --------
9. Trade and other
payables
2021 2020
GBP'000 GBP'000
-------- --------
Trade payables 1,450 3,403
Other taxes and social security 274 531
Other creditors 36 22
Accruals 2,643 1,364
Deferred income 6,288 4,057
10,691 9,377
-------- --------
10. Group reconciliation of profit before corporation tax
to cash generated from operations
2021 2020
GBP'000 GBP'000
---------------------- -------------------------------------- -------- --------
Operating activities
Profit before tax 3,043 4,969
Adjustments
for:
Depreciation of property, plant
and equipment 395 327
Amortisation of intangible assets 279 246
Finance income (25) (43)
Finance expense 32 -
Share-based payments 276 97
Settlement of Share-based payments 42 -
Gain on sale of property, plant
and equipment (8) -
Operating cash flows before movements in working
capital 4,034 5,596
============================================================== ======== ========
(Increase) in receivables (3,225) (3,862)
(Increase) / Decrease in inventories 1,137 (1,221)
Increase in payables 1,312 2,603
Cash generated from operations 3,258 3,116
======== ========
ENDS
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
FR DBGDLBXDDGBI
(END) Dow Jones Newswires
June 29, 2021 02:00 ET (06:00 GMT)
Celebrus Technologies (LSE:CLBS)
Gráfica de Acción Histórica
De Feb 2024 a Mar 2024
Celebrus Technologies (LSE:CLBS)
Gráfica de Acción Histórica
De Mar 2023 a Mar 2024