07:00 Wed 25 Nov 2020
Grafenia plc - Half-year Report

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
Grafenia plc
("Grafenia", "the Group" or "the Company")
Unaudited Interim Results for the period ended
Financial highlights
| Six months to 30 September 2020 | Six months to 30 September 2019 | |
Turnover | | | |
EBITDA* | | | |
Operating Loss | | | |
Loss before Tax | | | |
Tax | | | |
Total Comprehensive Income | | | |
|
|
| |
EPS | (1.03)p | (1.17)p | |
|
|
| |
Capital Expenditure (excluding acquisitions and IFRS 16 adjustments) | | | |
|
|
| |
| | | |
Net debt (excluding right of use assets) | | | |
*Earnings before interest, tax, depreciation and amortisation
Operational highlights
● Completed acquisition of Sign Right,
● Completed acquisition of Eggshell Solutions,
● Merged Clear Designs with Nettl of
● Nettl Works Maker third party products launched in
● First new batch of w3shop by Nettl web-to-print online stores now trading
● New, digital-first, sign and display installation platform upgrade in beta testing
For further information:
Grafenia plc |
|
|
| +44 7973 191 632 | |
| +49 175 734 2740 | |
| +44 161 848 5713 | |
|
| |
Allenby Capital Limited (Nominated Adviser and broker) | +44 203 328 5656 | |
|
|
Interim Statement
This report really should be called the Interim Lockdown Statement. It begins in
We discussed all the things we'd done during the first lockdown in our Annual Report. The steps we'd put in place. The ways we were supporting our partner network and team members. How we'd adapted our marketing and developed new products. Although we're repeating that activity during lockdown 2, we'll not repeat it here.
Instead we'd like to share how we see our place in a very different future. And we'll talk about the investment we've made in our platform to adapt to a changing world.
Oh, and we rolled three more businesses into our family. Tell you more about those later.
Trading Results and Cash
As we've previously reported, sales were severely impacted by the first lockdown. All events and exhibitions were cancelled. Many of our clients were forced to close. As a result, turnover during the six-month period decreased to
However, gross profit as a percentage of sales increased to 56.3% (2019: 51.8%). Why's that? Well, we have a pretty diverse product range. And lockdown didn't treat all things equally. We sell print, signage and promotional products to businesses. Cancelled events deflated those sales. But safety screens, branded masks and Covid-secure signage helped to mitigate that a bit. We also sell digital services, like website design, ecommerce platforms and search engine optimisation. Demand for all of those increased. And finally, we license our brands and systems to third parties. Subscription fees were resilient during lockdown, although impacted by support measures we put in place to help partners to trade through the storm.
Prior to Covid, we'd taken steps to reduce our cost-base. That included combining two factories and restructuring teams. As it became clear the downturn wasn't temporary, we took further overhead-reduction measures in the autumn. Despite the significant impact the pandemic had on revenue and gross margin, EBITDA (which is earnings before interest, tax, depreciation and amortisation) was more robust at a loss of
Our overheads significantly decreased to
At
Capital expenditure was
Trading Review
Our core client base is SMEs. But we sell to businesses of all sizes. Start-ups and scale-ups. Micro-businesses and multinationals. They can find all the things they need to promote themselves, online and offline, in our range. It used to just be the kind of print you hold - brochures, direct mail, letterheads. Now it's also signage and point-of-sale. Tidy vehicle wraps. Incredible wall graphics. And when events are allowed again, we'll be there to provide dramatic backdrops and must-have promotional swag.
We also build websites, booking apps and online shops. Out of necessity, clients are adding click and collect options. The lockdown has forced businesses to prioritise their digital presence more than ever. We help drive traffic to their sites through pay-per-click management and we work to move them up in search engine rankings. In fact, our network has now invoiced more than
We have a few different routes to market. We own Nettl stores in
Roll-ins to Company Stores
On
In
We also acquired Eggshell Solutions Limited, a digital design and marketing agency in
Where we've got a Nettl company store, roll-ins are appealing. We have detailed partner performance data to help our decision making. We know them and they know us. It's likely there will be more roll-ins in the future.
Brand Partners
As well as our company stores, we sell via licensed partners. These are established graphics businesses who 'bolt-on' a Nettl licence. They're print shops, graphic designers, sign businesses, marketing agencies and web designers. We call them "Brand Partners" because our brands are exposed to their clients.
For a monthly subscription, partners get access to the Nettl platform and digital toolkit. Our platform makes their studio more productive, by streamlining many client touch-points. Our Nettl Geeks provide technical guidance, helping build and deploy complex web projects. And partners can dip into a huge wealth of marketing collateral - with multiple ways to keep in touch with existing clients and find new ones. We automate delivery of digital and physical campaigns on their behalf, meaning partners can spend more time on sales, design and building relationships.
Income from Subscriptions and licence fees was reasonably resilient at
As at
Nettl and printing.com partners are hooked into our supply chain. They buy print, displays and signage under a service level agreement. Like our company stores, many partners were physically forced to close for much of the first half. Sales of print and products to Brand Partners was
Other channels
As smaller sign businesses are rolled in, they move to our Company Stores segment. Businesses which retain their identity, appear in our Signs revenue segment. In the half year, that segment features just Image Group. Although our usual exhibition and event work was cancelled, we quickly switched to making hand sanitiser stations, sneeze screens and floor graphics. Sales were
Finally, we sell to graphic professionals via online websites. This is a very competitive space. However, it's an important source of future partners and a place to test automation. During lockdown, many resellers hibernated. Some furloughed their teams and shut down their presses. We kept our production open and sales in our Online and Trade segment were
The Nettl Academy
Over the last six months we moved all of our training courses online. Now we deliver the entire syllabus through a mix of pre-recorded content and live group sessions. We do this globally, with people joining from different countries. That's made it much more productive to train new partners and refresh knowledge. It's also meant that we've been able to do things differently. And enabled us to rethink the way we acquire, onboard, launch and train future partners.
So what now?
The pandemic has given us plenty of time for soul-searching. To consider what things will look like on the other side. Nothing will be exactly the same again. Habits formed during the lockdown are likely to linger. Things that were always going to happen, are happening now. At a faster rate of change than expected.
To return to growth, our focus must remain on three things. Sell more products and services. Add more partners. Win more clients. Simple, right?
The secret sauce is our platform. We've been quietly working on some major developments.
We've rebooted, repackaged and relaunched some core parts of our platform. We've changed onboarding and sign-up processes to be self-service. And refreshed our marketing approach, to test different messaging and acquisition methods.
Selling online shops
An example of this is w3shop by Nettl. If you're a long time listener, you might remember that name from the past. All our online stores run on w3shop. It powers www.printing.com and hundreds of other w3shop sites operating around the world. It's our bespoke, web-to-print ecommerce platform.
Now of course we offer ecommerce solutions to our clients with Nettl. And if you're selling guitars and cannabis oil, aloe vera eye serum and beard trimmers, we have any number of ways to make that happen. But selling print online is different. You need a specialist web-to-print platform which connects everything. From the client to the studio and to production. You need a powerful back-office to efficiently manage orders and work with file checking, proofing and all the parts of a custom-designed and manufactured product.
Opening an online shop is a big commitment. It can take weeks, months even, to merchandise a fully-stocked store. To import products, upload images, write marketing descriptions and set pricing takes time. Keeping that range up-to-date is a challenge.
We thought there must be an easier way. For a print entrepreneur to just get going. To launch an online print shop, in their own brand and promote it to their client base. With w3shop, we think we've eliminated the pain. A fully-functioning web shop, ready to start selling in minutes not months. It's like ten minute abs. For a graphics business. Without the squats.
There are two flavours of web-to-print store. 'Open' shops, selling to existing clients or new businesses. And 'closed' shops, which are password-protected and branded for an individual corporate client. Closed shops are ideally suited to franchise networks and multi-site organisations, many of whom will be working on digital transformation and cost-cutting programmes. We have w3shop packages for both.
The first batch of new Shopkeepers have signed-up. Their w3shop storefronts are live, seamlessly hooked into our ready made, ready merchandised supply chain. Ready to sell Black Friday deals and seasonal business gifts, as well as our full range of print and display. Ready to grow their online selves.
We also see Shopkeepers as a potential first foray into becoming fully fledged Nettl partners. Wise Shopkeepers know they need to up their online sales game. The wisest Shopkeepers know that's just the start of what's possible.
Sell more products
Every day our partners get weird and outrageous client requests. And every day they're strumming their lips and asking our community for supplier recommendations.
So we launched Nettl Works Makers. A way for third party manufacturers to sell their products to tens of thousands of our clients. We've made it easy to list their products and retrieve orders using our production dashboard. The same way we process orders in our Nettl superstores and Works Manchester production hub.
We think of these as mass-niche products. A way to service long-tail demand, without increasing inventory or capex on specialist machinery. To connect the makers with our buyers. And to efficiently harness overcapacity in the industry.
Since the summer, we've added hundreds of new products from dozens of Works Makers. Business gifts and giveaways. Packaging and labels. Point-of-sale and apparel. Branded air fresheners. Baubles, bunting and badges. Hi-viz workwear and umbrellas. Who knew there were so many ways to brand a cappuccino? Served in a printed recycled cup or branded ceramic mug. Plonked on a beer mat or gently placed on a wooden coaster.
Once a product is approved, our platform translates it for sale in the
Actually, there's a bit of a network effect at play here. We reckon the more products we list, the more clients we'll attract for our partners and shopkeepers. And the more orders we send to Works Makers, the more products they'll want to list.
We sell and invoice Works Maker products via our partners and company stores, just like other things we make. Then we pay suppliers directly.
The boundaries of supplier and partner are not as clear cut as you might think. Our first Works Maker has turned partner. They've licensed Nettl, to help grow their business. Who knows, maybe some Works Makers will want a w3shop. Or to use our platform to manage the rest of their production workflow.
We'll use our Works Maker platform to hook in suppliers across our global network, without significant increase in overhead, or reliance on a single supplier. We're inviting commercial printers outside of the
Crafters of the curious. Builders of the brilliant. Manufacturers of the magical. Join, for free, at www.nettl.works.
Sell more installation services
Since we acquired Image Group back in 2017 we've been busy standardising products, now sold and processed through our proprietary platform. Things like floor stickers and magnetic signs, canvases and acrylics. life-sized cardboard characters and dinosaur-sized vinyl banners.
However, custom projects and bespoke installations are still managed on a legacy third party system.
That's changing.
We didn't just want to make the existing process a little bit better. We wanted to completely re-think it. To make the whole sign and graphics installation process, digital-first.
Surveys. Quoting. Proposals. Installation. Bookings. All are essential parts of the lifecycle of a sign project. And all ripe for digital transformation.
We plan to use our national network of partners, to survey and design. Manufacture graphics in our centralised production hub. And then install using a network of local Works Fitters.
In the first half we've been working on a major upgrade of our platform to make this happen. Right now, we're beta testing the foundations in our Works Manchester production hub. There's more work to do. We'll talk more about this as we roll it out, first in our company stores and selected partners.
Add more partners
We continue to bring on board Nettl partners, despite the pandemic. We're finding ways to tweak our sales process and build our platform. To keep adding value for current and potential partners. Creating ways that mean our partners can scale their business, without needing to invest in fixed overheads. That's a key part of growing the Nettl network and adding more partners.
The Nettl toolkit helps our partners sell and build websites, amongst many other things. As our partners move through their journey and get busier, we're often asked "If I sell a website, can you design it for me?" We've experimented with different ways of doing this. And learned a few things along the way.
Weirdly, signs and websites actually have a lot in common. They both start with a survey. Then a project is quoted and turned into a proposal. When the client signs off, then we get to work on the installation. So it makes a lot of sense to use the same platform to connect those who sell websites (Nettl partners) with website designers (Nettl creators). And make the process more productive.
We launched the Nettl Academy Scholarship in the summer. It's a six month online programme, for designers and sales people who've been made redundant. We're seeing the pandemic race through our industry and lots of talented people are losing their jobs through no fault of their own. We wanted to do something to help.
As we've moved all our training online, the marginal cost of adding more seats on each course is essentially zero. We don't even have to buy them egg mayo sandwiches at lunch. This scholarship is a way for these individuals to start a business, use our platform and supply chain and tap their local network and contacts.
At the end of the scholarship, we'd like scholars to graduate and become Nettl partners. However, there's no obligation. It might be that we've helped them upskill and get a new job. Maybe they'll think fondly of us and become clients, in their new position of power. Or maybe they'll become Nettl Creators, and build websites for partners who need that resource.
Nettl partners come in many shapes. With diverse backgrounds and different levels of experience. We'll continue to experiment with ways of bringing new partners into our network. Whether that's as a client, a scholar, a Works Maker, a Creator or as a shopkeeper. We love them all equally.
Win more clients
And so the circle is complete. With more products, we attract more shopkeepers. With more shopkeepers we find more partners. With more partners, we access more clients. With more clients, we sell more services. Sometimes long-term relationships are born from satisfying these strange, long-tail product requests. Extending our product range with Works Makers increases our share of wallet and purse.
As we acquire businesses, we also introduce cross-selling opportunities. It's one of the reasons we like the signs sector. Clients all need other things, not just signs.
We've talked to lots of potential businesses about becoming part of Grafenia. In the signs sector, we continue to look for larger businesses to convert into regional hubs, or Nettl Works. As part of our due diligence process, we like to get to know each other, starting with a trading relationship. Some potential acquisitions are supplying our network as Works Makers. We're not in a rush to do deals. It's important that any business joining Grafenia has the right reputation, right team, and is the right fit. We're fussy who we invite inside. As Works Makers, we get a preview of what they're like to work with. We can see how responsive they are, how they pick up our systems and gauge their reliability. So we're getting to know each other, while both of us earn some revenue. Well, that's nice too.
Thank you
This period has been an incredibly stressful time for our teams and our partners. We appreciate all the efforts that every individual in our business has made. To those that have been with us for decades. And those new to our network, who we've not yet met in real life. For the things you've done to support clients. Help out your colleagues. To keep things moving. Keep shipping. Making stuff happen. For the times you've done more than was expected of you. And especially for the times you've done that, while nobody was watching. Thank you.
Outlook
After the interim period ended, the
However, on an annualised basis, our overhead base is c.
We believe the steps we're taking to change our business will put us in a position to capitalise when better days emerge. We reiterate our mid-term goal of an EBITDA margin of 10-15%.
Now then, anything in our new Business Gifting range that's caught your eye? Some personalised socks with your face on? They're very you.
Chairman Chief Executive Officer
Unaudited Interim Results for the period ended
Consolidated Statement of Comprehensive Income
for the six months ended
|
| Unaudited | Unaudited | Audited |
| Note | Six months to | Six months to | Year ended 31 March 2020 |
|
| | | £000 |
|
|
|
|
|
Revenue | 3 | 5,252 | 8,410 | 15,604 |
Raw materials and consumables used |
| (2,293) | (4,056) | (7,627) |
Gross profit |
| 2,959 | 4,354 | 7,977 |
|
|
|
|
|
Staff costs |
| (1,937) | (2,922) | (5,686) |
Other operating charges |
| (1,142) | (1,395) | (3,553) |
Share based payments |
| (5) | (14) | (27) |
Earnings before interest, tax depreciation and amortisation |
|
(125) |
23 |
(1,289) |
|
|
|
|
|
Depreciation and amortisation |
| (980) | (1,031) | (2,025) |
Operating loss |
| (1,105) | (1,008) | (3,314) |
|
|
|
|
|
Financial income |
| 13 | 7 | 25 |
Financial expenses |
| (199) | (195) | (342) |
Net financing expense |
| (186) | (188) | (317) |
|
|
|
|
|
Loss before tax |
| (1,291) | (1,196) | (3,631) |
|
|
|
|
|
Taxation |
| 122 | 119 | 258 |
Loss for the period |
| (1,169) | (1,077) | (3,373) |
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period |
|
(1,169) |
(1,077) |
(3,373) |
|
|
|
|
|
Loss per share | 8 | (1.03)p | (1.17)p | (3.27)p |
Consolidated Statement of Financial Position
at
|
| Unaudited | Unaudited | Audited |
| Note | | | 31 March 2020 |
|
| | | |
Non-current assets |
|
|
|
|
Property, plant and equipment |
| 5,193 | 5,978 | 5,483 |
Intangible assets |
| 3,706 | 4,104 | 3,858 |
Deferred tax assets |
| - | 11 | - |
Total non-current assets |
| 8,899 | 10,093 | 9,341 |
|
|
|
|
|
Current assets |
|
|
|
|
Inventories |
| 430 | 395 | 346 |
Trade and other receivables | 4 | 2,239 | 3,323 | 2,150 |
Prepayments |
| 284 | 257 | 447 |
Cash and cash equivalents |
| 3,679 | 2,536 | 1,104 |
Total current assets |
| 6,632 | 6,511 | 4,047 |
|
|
|
|
|
Total assets |
| 15,531 | 16,604 | 13,388 |
|
|
|
|
|
Current liabilities |
|
|
|
|
Other interest-bearing loans and borrowings | 6 | 779 | 734 | 753 |
Deferred consideration |
| 146 | 315 | 147 |
Trade and other payables | 5 | 2,605 | 2,417 | 2,160 |
Deferred income | 5 | 67 | 64 | 143 |
Total current liabilities |
| 3,597 | 3,530 | 3,203 |
|
|
|
|
|
Non-current liabilities |
|
|
|
|
Other interest-bearing loans and borrowings | 6 | 6,429 | 3,919 | 3,483 |
Deferred income | 5 | - | 88 | - |
Deferred tax liabilities |
| 411 | 530 | 448 |
Total non-current liabilities |
| 6,840 | 4,537 | 3,931 |
Total liabilities |
| 10,437 | 8,067 | 7,134 |
|
|
|
|
|
Net assets |
| 5,094 | 8,537 | 6,254 |
|
|
|
|
|
Equity |
|
|
|
|
Share capital | 7 | 1,136 | 1,135 | 1,135 |
Share premium |
| 7,804 | 7,801 | 7,801 |
Merger reserve |
| 838 | 838 | 838 |
Retained earnings |
| (4,763) | (1,298) | (3,594) |
Share Option reserve |
| 79 | 61 | 74 |
Total equity |
| 5,094 | 8,537 | 6,254 |
Consolidated Statement of Changes in Shareholders Equity
for the six months ended
| Share Capital | Share Premium | Merger Reserve | Retained earnings | Share based payment reserve |
Total |
| | | | | | |
|
|
|
|
|
|
|
Opening shareholders' funds at | 847 | 4,125 | 838 | (221) | 47 | 5,636 |
|
|
|
|
|
|
|
Shares issued in the period | 288 | 3,738 | - | - | - | 4,026 |
Costs associated with share issue | - | (62) | - | - | - | (62) |
Loss and total comprehensive income for the period | - | - | - | (1,077) | - | (1,077) |
Share option reserve | - | - | - | - | 14 | 14 |
|
|
|
|
|
|
|
Closing shareholders' funds at | 1,135 | 7,801 | 838 | (1,298) | 61 | 8,537 |
|
|
|
|
|
|
|
Opening shareholders' funds at | 1,135 | 7,801 | 838 | (1,298) | 61 | 8,537 |
|
|
|
|
|
|
|
Loss and total comprehensive income for the period | - | - | - | (2,296) | - | (2,296) |
Share option reserve | - | - | - | - | 13 | 13 |
|
|
|
|
|
|
|
Closing shareholders' funds at | 1,135 | 7,801 | 838 | (3,594) | 74 | 6,254 |
|
|
|
|
|
|
|
Opening shareholders' funds at | 1,135 | 7,801 | 838 | (3,594) | 74 | 6,254 |
|
|
|
|
|
|
|
Shares issued in the period | 1 | 3 | - | - | - | 4 |
Loss and total comprehensive income for the period | - | - | - | (1,169) | - | (1,169) |
Share option reserve | - | - | - | - | 5 | 5 |
|
|
|
|
|
|
|
Closing shareholders' funds at | 1,136 | 7,804 | 838 | (4,763) | 79 | 5,094 |
|
|
|
|
|
|
|
Consolidated Statement of Cash Flows
for the six months ended
| Unaudited | Unaudited | Audited |
| Six months to 30 September 2020 | Six months to 30 September 2019 | Year ended 31 March 2020 |
| | | |
Cash flows from operating activities |
|
|
|
Loss for the period | (1,169) | (1,077) | (3,373) |
Adjustments for: |
|
|
|
Depreciation, amortisation and impairment | 980 | 1,031 | 2,025 |
Profit on sale of plant and equipment | (4) | (101) | (99) |
Release of deferred profit on sale of plant and equipment | (8) | (29) | (12) |
Release of Deferred consideration | - | (220) | (220) |
Share based payments | 5 | 14 | 27 |
Net finance expense | 186 | 188 | 317 |
Bad debt expense | 138 | 50 | 588 |
Tax income | (122) | (119) | (258) |
Operating cash flow before changes in working capital and provisions | 6 | (263) | (1,005) |
Change in trade and other receivables | (115) | (86) | 444 |
Change in inventories | (82) | 60 | 109 |
Change in trade and other payables | 348 | (399) | (708) |
Cash generated/(utilised) by operations | 157 | (688) | (1,160) |
Tax received | 175 | 84 | 67 |
Net cash inflow/(outflow) from operating activities | 332 | (604) | (1,093) |
|
|
|
|
Cash flows from investing activities |
|
|
|
Proceeds from sale of plant and equipment | 10 | 265 | 265 |
Acquisition of plant and equipment | (45) | (317) | (383) |
Capitalised development expenditure | (206) | (174) | (373) |
Acquisition of other intangible assets | (122) | (158) | (305) |
Acquisition of subsidiary | (20) | - | - |
Net cash used in investing activities | (383) | (384) | (796) |
|
|
|
|
Cash flows from financing activities |
|
|
|
Repayment of invoice finance | (2) | (987) | (947) |
Proceeds from loans | 3,010 | - | - |
Repayment of loans | (20) | (211) | (211) |
Capital payment of lease liabilities | (165) | (348) | (622) |
Interest payment of lease liabilities | (136) | (188) | (317) |
Payment of deferred consideration | (102) | (60) | (228) |
Issue of shares (net of costs) | 4 | 3,964 | 3,964 |
Net cash inflow from financing activities | 2,589 | 2,170 | 1,639 |
|
|
|
|
Net increase in cash and cash equivalents | 2,538 | 1,182 | (250) |
Cash acquired on acquisition | 37 | - | - |
Cash and cash equivalents at start of period | 1,104 | 1,354 | 1,354 |
Cash and cash equivalents at end of period | 3,679 | 2,536 | 1,104 |
Notes
(forming part of the interim financial statements)
1 Basis of preparation
Grafenia plc (the "Company") is a company incorporated and domiciled in the
These financial statements do not include all information required for full annual financial statements and should be read in conjunction with the financial statements of the Company as at and for the year ended
These interim financial statements are prepared on the same basis as the financial statements for the
year ended
The Directors review a two-year forecast when approving the interim financial statements to ensure that adequate cash resources are in operational existence to support trading for the foreseeable future.
These condensed consolidated interim financial statements were approved by the Board of Directors on
2 Significant accounting policies
The accounting policies applied by the Company in these condensed consolidated interim financial statements are the same as those applied by the Company in its consolidated financial statements for the year ended
3 Segmental information
The Company's primary operating segments are geographic being
This disclosure correlates with the information which is presented to the Chief Operating Decision Maker, the Chief Executive (CEO), who reviews revenue (which is considered to be the primary growth indicator) by segment. The Company's costs, finance income, tax charges, non-current liabilities, net assets and capital expenditure are only reviewed by the CEO at a consolidated level and therefore have not been allocated between segments.
Analysis by location of sales
| |
|
Other |
Total | ||||
| | | | | ||||
Six months ended | 4,935 | 114 | 203 | 5,252 | ||||
Six months ended | 8,033 | 205 | 172 | 8,410 |
| |||
Year ended | 14,791 | 384 | 429 | 15,604 |
| |||
Revenue generated outside the
DISAGGREGATION OF REVENUE
The disaggregation of revenue from contracts with customers is as follows:
| Subscriptions & Licence Fees | Company Stores | Brand Partners |
Signs | Online & Trade | Total |
| | | | | | |
Six months ended | 977 | 768 | 915 | 1,918 | 674 | 5,252 |
Six months ended | 1,036 | 1,445 | 1,895 | 2,600 | 1,434 | 8,410 |
Year ended | 2,083 | 2,806 | 3,414 | 4,624 | 2,677 | 15,604 |
4 Trade and other receivables
| Unaudited | Unaudited | Audited |
| Six months to 30 September 2020 | Six months to 30 September 2019 | Year ended 31 March 2020 |
| £000 | £000 | £000 |
Trade receivables | 3,022 | 3,430 | 2,743 |
Less provision for trade receivables | (1,093) | (461) | (1,000) |
Trade receivables net | 1,929 | 2,969 | 1,743 |
Total financial assets other than cash and cash equivalents classified at amortised cost | 1,929 | 2,969 | 1,743 |
|
|
|
|
Corporation tax | 252 | 269 | 354 |
Other taxes | - | - | - |
Other receivables | 58 | 85 | 53 |
Total Other receivables | 310 | 354 | 407 |
Total trade and other receivables | 2,239 | 3,323 | 2,150 |
5 Trade and other payables
Current liabilities |
| Unaudited Six months to 30 September 2020 | Unaudited Six months to 30 September 2019 | Audited Year ended 31 March 2020 |
|
| £000 | £000 | £000 |
Trade payables |
| 1,158 | 1,200 | 1,326 |
Accruals |
| 356 | 816 | 472 |
Other liabilities |
| 1,091 | 401 | 362 |
Total financial liabilities, excluding 'non-current' loans and borrowings classified as financial liabilities measured at amortised cost |
|
2,605 |
2,417 |
2,160 |
Deferred Income |
| 67 | 64 | 143 |
Total trade and other payables |
| 2,672 | 2,481 | 2,303 |
|
|
|
|
|
Non-current liabilities |
|
|
|
|
Deferred income |
| - | 88 | - |
Total non-current liabilities |
| - | 88 | - |
6 Borrowings
|
| Unaudited Six months to 30 September 2020 | Unaudited Six months to 30 September 2019 | Audited Year ended 31 March 2020 |
Current liabilities |
| £000 | £000 | £000 |
Invoice financing |
| 126 | 81 | 128 |
Lease liabilities |
| 594 | 653 | 625 |
Loans |
| 59 | - | - |
|
| 779 | 734 | 753 |
|
|
|
|
|
Deferred consideration |
| 146 | 315 | 147 |
Non-current liabilities |
|
|
|
|
Lease liabilities |
| 3,439 | 3,919 | 3,483 |
Loans |
| 2,990 | - | - |
|
| 6,429 | 3,919 | 3,483 |
On 15 July 2020 the company created a £50.00m perpetual bond facility and issued £3.00m of the bonds, at nominal value, to investors, raising £2.01m before expenses.
On 31 July 2020 the company secured an additional term loan for £1.00m through the Coronavirus Business Interruption Loan Scheme.
7 Share Capital
On 12 August 2019 the company issued 28,653,569 ordinary shares of £0.01 each at an issue price of £0.14. The difference between the issue price and the nominal value being taken into the share premium account.
On 26 September 2019 an employee, who was a good leaver, exercised options over 187,094 ordinary shares of £0.01 each at an issue price of £0.0775. The difference between the issue price and the nominal value being taken to the share premium account.
On 3 September 2020 the company announced the exercise of 46,450 options over ordinary shares of £0.01 each at an issue price of £0.0775. The difference between the issue price and the nominal value being taken into the share premium account.
8 Earnings per share
The calculations of earnings per share are based on the following profits and numbers of shares:
| Unaudited Six months to 30 September 2020 | Unaudited Six months to 30 September 2019 | Audited Year ended 31 March 2020 |
| £000 | £000 | £000 |
Loss after taxation for the period | (1,169) | (1,077) | (3,373) |
|
|
|
|
Weighted average number of shares in issue | 113,571,796 | 92,403,217 | 102,993,216 |
Basic earnings per share | (1.03)p | (1.17)p | (3.27)p |
Share options had no dilutive effect on the weighted average number of shares and therefore no diluted earnings per share have been stated.
9. Dividend
The Directors are not declaring an Interim Dividend (2019: Nil).
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.
NO INVESTMENT ADVICE
The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...
FOR OUR FULL DISCLAIMER CLICK HERE