RNS Number : 0021I
D4T4 Solutions PLC
30 November 2022
 

 

30 November 2022

D4t4 Solutions plc

 

Half-year results for the six months to 30 September 2022

 

D4t4 Solutions Plc (AIM: D4t4, "the Group", "D4t4"), the AIM-listed data solutions provider, announces its half year results for the six months to 30 September 2022 ("H1 FY23").

 

Financial highlights

·       Revenue of £8.1m (H1 FY22: £7.6m)

·       Annual recurring revenue ("ARR") increased to £15.8m (H1 FY22: £10.4m, FY22: £14.0m)*

·       Gross margin of 38.3% (H1 FY22: 53.2%)

·       Adjusted loss before tax of £1.3m (H1 FY22: profit £0.1m)**

·       Adjusted diluted EPS loss of 4.49p (H1 FY22: profit of 0.22p)**

·       Strong cash position of £26.2m (H1 FY22: £16.1m: FY22: £11.4m) with no debt

·       Interim dividend of 0.88p per share, up 3.5% (H1 FY22: 0.85p)

 

Operational highlights

·      Launch of CX VaultTM, a cookie-less solution to address customer needs as cookies continue to be restricted due to evolving regulations

·      Release of CDP version 9.6 incorporating new Customer Experience and Productivity innovations

·      Launch of Always-On Insights, a new offering combining the capabilities of Pegasystems' Customer Decision Hub™ with Celebrus CDP

·      Several key contract wins in the period including the sale of Celebrus CDP to a US-based health group, and upsell of Celebrus FDP biometrics functionality to an online retailer

Outlook

·      Post period-end contract wins with a Top 10 global bank, including a CDP renewal and conversion to a 3-year term Enterprise License Agreement, and a production trial of Celebrus FDP.

·      Recent launch of Celebrus Customer Data Infrastructure (CDI) for Salesforce in the Salesforce AppExchange.

·      Year to date contract progress and the high visibility of opportunities expected to close in the second half underpin the Board's confidence in achieving full year expectations and continuing to drive incremental growth in ARR

 

Bill Bruno , CEO of D4t4 Solutions, commented:

"Our first half has laid the foundation to ensure we are setting the right course for the future of our business. We will continue to invest in Sales and Marketing to support both direct and indirect growth of both the Celebrus CDP and FDP software revenues on an ARR basis.

Whilst the Board remains alert to the global economic environment and associated downside risks, our year-to-date contract progress and highly visible pipeline of opportunities means we are confident of achieving full year expectations*** and delivering another year of growth in ARR."

 

* ARR (Annual Recurring Revenue) is the amount of revenue at a point in time that is expected to recur within the next twelve months.

** Adjusted profit before tax and EPS are calculated before amortisation of intangibles, one-off reorganisation costs, foreign exchange gains/(losses) and share based payment charges.

 
***
For the purpose of this announcement, the Group believes market consensus for FY23 to be revenue of £28.0m, and adjusted profit before tax of £4.2m.

 

 

Enquiries

 

D4t4 Solutions Plc

Bill Bruno, Chief Executive Officer

Ash Mehta, Chief Financial Officer

 

 

 

+44 (0) 1932 893333

investors@d4t4solutions.com

 

finnCap (Nominated Adviser & Joint Broker)

Julian Blunt / Edward Whiley, Corporate Finance

Alice Lane, ECM

 

+44 (0) 20 7220 0500

Canaccord Genuity (Joint Broker)

Simon Bridges / Andrew Potts

 

+44 (0) 20 7523 8000

 

 

About D4t4 Solutions plc

 

D4t4 Solutions plc (AIM: D4t4) was founded around a passion for helping global enterprises derive value from their data assets.

 

Supporting customers in financial services, retail, travel, healthcare, and telecommunications across 27 countries, D4t4 enables businesses to make smarter, informed decisions via Celebrus, the Group's flagship first party data product suite. Celebrus CDP automatically captures, contextualises, and activates user-based behavioural data in real-time across all digital channels. Through behavioural biometrics and analytics, Celebrus FDP helps companies prevent fraud before it happens. Celebrus CDM provides an enterprise platform that automates the integration and transformation of customer data from all relevant data sources, whether on-premises or cloud, to deliver customer and regulatory analytics.

 

The Group has offices in the UK, USA, India, and Australia with key talent in all markets to drive the growth of the business. Celebrus is fully compliant with all major data privacy regulations and the Group is accredited to ISO27001: Information Security Management.

 

For more information, please see www.d4t4solutions.com  

 

 

 

 



 

Operational review

 

Overview

 

During the period we laid the foundations on which we can build for accelerated and consistent growth across the business. Systems, processes, and efficiencies have continued to be a focal point while also ensuring we have the right people and leaders across our business.

 

Our continued investment in Sales and Marketing has built a solid pipeline of both direct and indirect opportunities and we continue to advance our partner program to not only include technology partners but also solution integrator partners that will assist us with scale around the globe. The direct sales approach has created better visibility into our pipeline and has also provided greater clarity into how to close these deals as many of them are now within our control.

 

While we continue to be a second-half weighted business in this financial year, we have taken further strides to smoothing this out and are expecting to see a move towards a 40/60 split in future years. We also have successfully converted our final targeted existing accounts to term-based ARR licenses for Celebrus CDP improving the overall quality of our revenue.

 

Finally, we were thrilled to launch our Celebrus CDI for Salesforce partner offering after the period end.

 

 

Strategy

 

Our focus as a business is to drive accelerated and consistent growth of our Celebrus CDP and FDP licenses. The majority of our contracts will continue to be multi-year commitments and we have innovated and simplified our Sales and Pre-Sales processes to make it easier to demonstrate the capabilities of our platform to our prospects, clients, and partners. For FDP, we have simplified the sales process considerably as well as our messaging as we continue to evolve the sales process based on customer feedback. Our FDP wins have been made as a result of customers' increasing needs to address Scams, Behavioral Biometrics, Bot Detection, and Account Takeover.

 

As businesses increasingly move away from on-premise hardware deployments, we have innovated within our Customer Data Management (CDM) division and launched the Celebrus Cloud. This allows us to enable our software for customers quickly in a single-tenant private cloud instance that we manage on their behalf. This deployment method whether in Celebrus Cloud or a customer's own private cloud will over time become our primary offering.

 

Contract wins and ARR

 

There were several contract wins in the period including the sale of Celebrus CDP to a US-based health group, and upsell of Celebrus FDP biometrics functionality to an online retailer.

ARR for the period increased to £15.8m (H1 FY22: £10.4m, FY22: £14.0m).

Since the period end we have seen a contract win with a Top 10 global bank which includes a CDP renewal and conversion to a 3-year term Enterprise License Agreement as well as a production trial of Celebrus FDP.. These together added USD 0.6 million to ARR and USD 6.0 million in total contract value to the order book.

Pipeline visibility, measurement and management has vastly improved with the implementation of new CRM software at the start of the period. This allows for better analysis, understanding, and ability to adjust investments of time and other resources based upon the data we review bi-weekly.

 

Celebrus Customer Data Platform ("CDP")

 

With the launch of version 9.6, innovation in the period included our new cookieless solution CX Vault. Consumers continue to opt-out of data capture and cookies. When that happens, brands are unable to capture any data for marketing purposes and thus are not able to use that data to deliver a positive experience on the websites and mobile apps with which consumers interact. With CX Vault, Celebrus provides an opportunity to leverage the machine learning in the platform and rules to improve customer experiences without any cookies or any data capture allowing users to remain anonymous throughout an entire session, with no information ever being shared or sent to a server. CX Vault is an ethical innovation that meets privacy regulations and respects consumers who opt-out of cookie usage, whilst still ensuring brands can connect with their customers.

 

We continue to emphasise and innovate upon our digital identity and profile capabilities, and that was a core driver of our new technology partnership with Salesforce, which is described below.

 

Celebrus Fraud Data Platform ("FDP")

 

In version 9.6 of our platform, further innovation in our FDP included Sense and Trace enhancements, Call detection, and additional behavioral biometrics. Sense and Trace is a key feature that allows organisations to spot typical bad actors and enables an ongoing watch for similar situations that might require intervention. Call detection is key for Scams or Mule Fraud when odd behaviors within a mobile app combined with that same individual being on the phone could be an opportunity to catch the fraudster before the fraud. Behavioral Biometrics combined with our digital identity and profile capabilities continues to be a differentiator for our platform and we will continue to focus on enhancing it in the future. Our pipeline is largely focused on direct deals at this point in time with a couple of active campaigns generating interest for paid production pilots.

 

From a Sales perspective, we are focused on identifying a data gap in an organisation and educating them on how our platform solves for that gap. As a result, these initial Sales are very focused on a use case which then allows us to land and expand in those accounts.

 

The numerous awards that FDP has received during the period are testament to the product and provide additional credibility as we focus on building market share.

 

 

Partnerships

 

We are thrilled to have recently launched our new partnership with Salesforce which is initially focused on landing our digital identity and profiles into the Salesforce Marketing Cloud.

 

Celebrus CDI for Salesforce is a Customer Data Integration ("CDI") application on Salesforce AppExchange, empowering customers with the real-time, first-party, digital data they need to close identity and data gaps. Celebrus CDI for Salesforce delivers data to a customer's Salesforce Marketing Cloud that can be sued to fill those digital identity gaps to build robust interaction profiles, and to inform and empower marketing activities with the contextualised, first-party digital data necessary.

 

With Pega, we were the foundational partner for the "Always-On Insights" program launched early in the period. We have also further integrated with Teradata to bring our data into the VantageCloud and ClearScape Analytics.

 

We have been working to incentivise our partner program focused on technology and consulting partnerships. As we build for better scale around the globe, we intend to onboard additional global and regional solution integrator partners, with many already in various stages of activation.

 

M&A

 

While there is nothing imminent, we continue to evaluate our product roadmap and look for opportunities to buy versus build in the right situation where the business benefit would be clear.

 

People

 

We are grateful for the fantastic talent across the globe within our business and their efforts to help build upon the vision for the Group. We continue to invest in changes to increase employee satisfaction, retention and motivation.

 

We have completed the transition to a hybrid working environment as this is increasingly an important factor for employees, and we continue to invest in training and development to ensure we are supporting our people and leadership around the globe, and making the business truly scalable.

 

We have continued to restructure the business, not only to create efficiencies but also to create opportunities for key individuals to grow in their roles and increase their contributions to the business.

 

Finally, we have also formally rolled out our annual share option schemes for employees to incentivise and connect people more directly to the success of the business.

 

Current Trading & Outlook

 

The advancements we have made to the CDP and FDP Version 9.6 in the first half, position us at the heart of customers evolving requirements. We will continue to grow the business through our brand recognition directly and our partner networks which we have built on post period end with CDI for Salesforce in the Salesforce AppExchange.

Whilst the Board remains alert to the global economic environment and associated downside risks, our year-to-date contract progress and highly visible pipeline of opportunities means we are confident in achieving full year expectations and delivering another year of growth in ARR.

 

Financial review

 

 

Revenue and Gross Margin

 

Revenue for the period was £8.1m (H1 FY22: £7.6m), with a change in mix, as shown in note 2, that affected the gross margin percentage.

 

Own-IP license revenue, which is high margin, was down to £1.0m (H1 FY22: £1.8m). License revenue is recognised for the full year in the month of sale or renewal, so the lower number for the current period simply reflects the lower level of new sales and the multi-year renewals achieved in the period. Conversely, the third-party products revenue, which is low margin, was higher at £1.9m (H1 FY22: £0.7m). Delivery services, and support and maintenance combined totaled £5.2m (H1 FY22: £5.0m).

 

The changes in revenue mix resulted in a gross margin of £3.1m (H1 FY22: £4.0m) or 38.3% (H1 FY22: 53.2%).

 

Administration expenses and Profit before Tax

 

Administration expenses overall were stable at £4.3m (H1 FY21: £4.4m). Within Administration expenses, the Operating costs increased to £4.5m (H1 FY21: £3.9m) principally due to increased headcount added over the last year. In other Administration expenses there was a foreign exchange gain of £0.8m (H1 FY21: £0.1m), and a share-based payment charge of £0.5m (H1 FY21: £0.3m).

 

The reduced gross margin therefore led to an adjusted Loss before tax of £1.3m (H1 FY21: profit of £0.1m).

 

Annual Recurring Revenue

 

Annual Recurring Revenue ("ARR") at the end of the period was £15.8m, (H1 FY22: £10.4m; Full year FY22 £14.0m). The increase of £1.8m in the period is comprised of £0.4m of new wins, most of them upsell to existing customers, and a revaluation of USD denominated contracts at the period end exchange rate.

 

The Board is confident of ARR increasing in the second half on the back of signing new contracts currently under negotiation.

 

Balance Sheet, Cash and Interest income

 

The major changes in the balance sheet from the last period end were the unwinding of the high trade debtor balance, which was down from £25.0m to £1.8m due to receipts during the period, along with a reduction in accruals for major projects and a reduction in deferred income as project delivery has taken place and associated revenue recognised.

 

The Group remains debt-free and the net cash balance at 30 September 2022 was £26.2m, an increase of £10.1m from the same period last year (H1 FY21: £16.1m), and an increase of £14.8m from the start of the year. A dividend of £0.8m was paid in the period and a further special dividend of £5.0m was paid in October.

 

With interest rates rising, the healthy cash balances have been put to good use generating £134,000 of interest income in the period (H1 FY22: £11,000).

 

 

Foreign exchange rate movements

 

The Group seeks to mitigate currency risk as far as reasonably possible. The exposure to transactional foreign exchange risk is monitored and managed at a Group level. Natural hedging is employed, to the extent possible, to minimise net exposures; however, where significant exposures arise it is Group policy to enter into formal hedging arrangements.

 

This has been a period of significant exchange rate volatility with the USD/GBP rate moving from 1.316 to 1.164, a move of 11.5%. The average rate for the period was 1.238 (H1 FY22: 1.389), a change of 10.9%. These rate changes impacted the income statement. On a constant currency basis, the revenue would have been lower at £7.8m, whilst the Cost of Sales would have been lower at £4.6m. This would have produced a gross margin of £3.3m, compared to £3.1m on an actual currency rate basis. Operating expenses would have been £4.4m rather than £4.5m resulting in an adjusted PBT loss of £1.1m compared to the loss of £1.3m reported.

 

At the start of the period, the Group had Deferred income of £14.2m which reduced to £10.4m at the end of the period. Under IFRS, the revenues released into the income statement during the period were done so at historic higher rates of 1.348, from the date of invoicing. If the revenues had been recognised at actual rates in the period, the reported revenue would have been £8.5m against the £8.1m reported and the Adjusted PBT would have been a loss of £0.9m.

 

Dividend

 

As a Group, D4t4 continually monitors the balance between delivering on a progressive dividend policy whilst at the same time balancing investment in the business for future growth.

 

During the period, the Group paid a final dividend of 2.07p per share, and after the period end in October 2022 the Group paid a special dividend of 12.5p per share.

 

For this current half year, the Board is pleased to declare an interim dividend of 0.88p per share, a 3.5% increase over the comparative period last year. This will be paid on 12 January 2023 to members on the register as at 9 December 2022. The shares will become ex-dividend on 8 December 2022.

 

 



 

Consolidated income statement
for the period ended 30 September 2022 (unaudited)





Six months ended
30 September


Year ended 31 March

 





2022

2021


2022

 




Note

£'000

£'000


£'000

 

Continuing operations

 






 


Revenue


2

8,133

7,575


24,459

 


Cost of sales

 

(5,016)

(3,547)


(11,755)

 

Gross Profit

 



3,117

4,028


12,704

 

 

Administration expenses

3

(4,312)

(4,383)


(11,000)

 


Other operating income

 

15

29


58

 

(Loss) / Profit from operations

4

(1,180)

(1,338)


1,762

 

 

Finance income


134

11


22

 


Finance costs

 

(10)

(10)


(21)

 

(Loss) / Profit before tax


35

(1,056)

(325)


1,763

 


Tax


 

(290)

               48


(68)

 

Attributable to equity holders of the parent

(1,346)

(277)


1,695

 

(Loss) / Earnings per share from continuing operations attributable to the equity holders of the parent

 


Basic


5

(3.35)p

(0.69)p


4.21p

 


Diluted


5

(3.35)p

(0.69)p


4.14p

 

 

 

Consolidated statement of comprehensive income
for the period ended 30 September 2022 (unaudited)





Six months ended
30 September


Year ended 31 March

 





2022

2021


2022




 

£'000

£'000


£'000

Attributable to equity holders of the parent

 


(1,346)

(277)


1,695

Other comprehensive income:

 


 



 

Items that will not be reclassified to profit or loss

 


 



 


Gains on property revaluation



-

-


70


Exchange differences on translation of foreign operations

 

11

(21)


(21)

Total comprehensive (loss) / income for the period attributable to equity holders of the parent



(1,335)

(298)


1,744

                                               



 

Consolidated statement of changes in equity attributable to Equity Holders of the Parent
for the period ended 30 September 2022 (unaudited)

 


Share
capital

Share
premium

Merger
reserve

Revaluation
reserve

Own
shares

Retained
earnings

Total
£'000

Balance at 1 April 2021

808

3,365

5,981

1,240

(542)

20,034

30,886

Dividends paid

                                                       -

-

-

-

-

(805)

(805)

Issue of new shares

1

-

50

-

-

-

51

Share-based payment charge

-

-

-

-

-

289

289

Transactions with equity holders

1

-

50

-

-

(516)

(465)

Profit for the period

                                                       -

-

-

-

-

(277)

(277)

Other comprehensive income

                                                                           -

-

-

-

-

(21)

(21)

Total comprehensive income

                                                                           -

-

-

-

-

(298)

(298)

Balance at 30 Sept 2021

809

3,365

6,031

1,240

(542)

19,220

30,123

Dividends paid

-

-

-

-

-

(342)

(342)

Purchase of own shares

-

-

-

-

(377)

-

(377)

Settlement of share
based payments

                                                                                                                 -


-


-


-


249


(140)


109

Share-based payment charge

-

-

-

-

-

330

330

Transactions with equity holders

                                                                                  
-


-


-


-


(128)


(152)


(280)

Profit for the period

-

-

-

-

-

1,972

1,972

Other comprehensive income

                                                                           -

-

-

70

-

-

70

Total comprehensive income

                                                                           -

-

-

70

-

3,799

3,869

Balance at 1 April 2022

809

3,365

6,031

1,310

(670)

21,040

31,885

Dividends paid

                                                                           -

-

-

-

-

(831)

(831)

Purchase of own shares

-

-

-

-

(436)

-

(436)

Settlement of share-based payments

-

-

-

-

220

(218)

2

Share-based payment charge

-

-

-

-

-

462

462

Transactions with equity holders

-

-

-

-

(216)

(587)

(803)

Loss for the period

                                                                           -

-

-

-

-

(1,346)

(1,346)

Other comprehensive income

                                                                           -

-

-

-

-

11

11

Total comprehensive income

                                                                           -

-

-

-

-

(1,335)

(1,335)

Balance at 30 Sept 2022

809

3,365

6,031

1,310

(886)

19,118

29,747

 

 



 

Consolidated statement of financial position
as at 30 September 2022 (unaudited)




30 September

30 September


31 March





2022

2021


2022




 

£'000

£'000


£'000

Non-current assets

 






Goodwill




9,446

9,446


9,446

Other intangible assets



811

846


808

Property, plant and equipment



3,950

3,983


4,012

Deferred tax assets

 

195

88


232

 

 



14,402

14,363


14,498

Current assets

 



 



 

Trade and other receivables

6

4,157

4,551


27,385

Tax receivables


53

220


573

Inventories


-

134


-

Cash and cash equivalents

 

26,180

16,106


11,430

 

 

30,390

21,011

 

39,388

Total assets

 

44,792

35,374


53,886

Current liabilities







Trade and other payables

7

(3,910)

(2,285)


(7,144)

Deferred income


(10,388)

(2,726)


(14,200)

Lease obligations


(96)

-


(54)

 

 

(14,394)

(5,011)

 

(21,398)

Non-current liabilities






 

 

Lease obligations


(194)

(240)


(146)

Deferred tax liabilities


(457)

-


(457)

 

 

(651)

(240)

 

(603)

Total liabilities

 

(15,045)

(5,251)

 

(22,001)

Net assets

 

29,747

30,123

 

31,885

 

 

 

 

 

 

 

Equity

 

 

 

 

 

Share capital


809

809


809

Share premium account


3,365

3,365


3,365

Merger reserve


6,031

6,031


6,031

Revaluation reserve


1,310

1,240


1,310

Own shares


(886)

(542)


(670)

Retained earnings


19,118

19,220


21,040

Attributable to equity holders of the parent

 

29,747

30,123

 

31,885

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated cash flow statement
for the period ended 30 September 2022 (unaudited)




Six months ended
30 September


Year ended
31 March





2022

2021


2022




 

£'000

£'000


£'000

Operating activity

 






(Loss)/profit before tax

 

(1,056)

(325)

 

1,763

Adjustments for:

 



 



 

Depreciation of property, plant and equipment


214

188


391

Amortisation of intangible assets


165

148


306

Finance income


(134)

(11)


(22)

Finance expense


10

10


21

Share-based payments


462

289


619

Loss/ (gain) on sale of property, plant and equipment


13

-


(16)

Operating cash flows before movements in working capital

(326)

299

 

3,062

Decrease / (increase) in receivables


23,228

8,811


(14,023)

(Increase) / decrease in inventories


-

(5)


129

(Decrease) / increase in payables


(7,002)

(6,178)


10,671

Cash generated from / (used in) operations

 

15,900

2,927

 

(661)

Income tax receipts (net)


339

164


1

Net cash generated from / (used in) operating activities

16,239

3,091

 

(660)

 

Investing activities






Interest received


134

11


22

Purchase of property, plant and equipment


(180)

(28)


(197)

Acquisition of subsidiary, net of cash acquired


-

(200)


(200)

Capitalisation of development costs


(118)

(123)


(242)

Net cash used in investing activities

 

(164)

(340)

 

(617)

 

Financing activities

 

 

 

 

 

Dividends paid


(831)

(805)


(1,147)

Lease repayments


(50)

(71)


(98)

Interest paid


(10)

(10)


(21)

Purchase of own shares


(436)

              -


(377)

Exercise of share options


2

-


109

Net cash used in financing activities

 

(1,325)

(886)

 

(1,534)

 

Net increase/(decrease) in cash and cash equivalents

 

14,750

1,865

 

(2,811)

Cash and cash equivalents at start of period


11,430

14,241


14,241

Cash and cash equivalents at end of period

 

26,180

16,106

 

11,430

 

 

 

 

 

 

 

 

 

 

Notes to the financial statements

 

1. Basis of preparation

 

These consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the UK and on a historical basis, using the accounting policies which are consistent with those set out in the Group's annual report and accounts for the year ended 31 March 2022. The interim financial information for the six months to 30 September 2022, which complies with IAS 34 'Interim Financial Reporting', has been approved by the Board of Directors on 29 November 2022.

The unaudited interim financial information for the period ended 30 September 2022 does not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. The comparative figures for the year ended 31 March 2022 are extracted from the statutory financial statements which have been filed with the Registrar of Companies and contain an unqualified audit report and did not contain statements under Section 498 to 502 of the Companies Act 2006.

 

2. Business and geographical segments

 

Whilst having three product groups, the Group operates the business as a single business with no separation into divisions or allocation or people or assets to a particular division. The management team is responsible for all three product groups with no individual having responsibility for a particular product group. This is consistent with the internal reporting for management purposes. Management does however monitor revenues by revenue type.

 

The revenue analysis set out below is consistent with that provided to the Board of Directors.

 

Business Segments



Six months ended 30 September


Year ended 31 March

 





2022

2021


2022




 

£'000

£'000


£'000

Products - Own IP

 


970

1,789


6,137

Products - 3rd party

 


1,939

744


7,001

Delivery services

 


1,439

1,547


4,194

Support & maintenance



3,785

3,495


7,127

Revenue

 

8,133

7,575

 

24,459

 

 

Geographical information



Six months ended 30 September


Year ended 31 March

 





2022

2021


2022




 

£'000

£'000


£'000

United Kingdom

 


1,533

1,849


3,962

Rest of Europe

 


794

561


2,421

United States of America



4,973

4,774


16,859

Others



833

391


1,217

 

 

8,133

7,575

 

24,459

 

The geographical revenue segment is determined by the domicile of the customer.

 

3.  Administration expenses

 




Six months ended 30 September


Year ended 31 March





2022

2021


2022




 

£'000

£'000


£'000

Operating expenses

4,519

3,926


9,498

Amortisation of intangible assets

 


165

148


306

Share-based payments

 


462

289


677

Net foreign exchange differences



(849)

(62)


93

Costs related to acquisition



-

36


36

Restructuring costs



15

46


390

Administration expenses

4,312

4,383

 

11,000


 

 

 

 

 

4.  Adjusted profit before tax

 




Six months ended 30 September


Year ended 31 March

 





2022

2021


2022




 

£'000

£'000


£'000

(Loss) / profit before tax

(1,056)

(325)


1,763

Amortisation of intangible assets

 


165

148


306

Share-based payments

 


462

289


678

Net foreign exchange differences



(849)

(62)


93

Costs related to acquisition during the year



-

36


36

Restructuring costs



15

46


390

Adjusted profit / (loss) before tax

(1,263)

132

 

3,266

 

 

 

5. Earnings per share




Six months ended 30 September


Year ended 31 March

 





2022

2021


2022




 

£'000

£'000


£'000

(Loss) / profit attributable to owners of the parent

(1,346)

(277)


1,695

Amortisation of intangible assets

 


165

136


306

Share-based payments

 


462

68


677

Net foreign exchange differences



(849)

161


93

Restructuring costs



15

82


390

Tax on adjustments



(251)

(87)


(284)

Adjusted (loss)/profit attributable to owners of the parent 

(1,804)

92

 

2,913

 

 

 

 

 

5. Earnings per share (continued)

 


 

 

 

 





30 September2022

30 September 2021


31

March

2022




 

Number

Number


Number

Basic weighted average number of shares, excluding own shares, in issue

40,162,413

40,230,842


40,240,799

Dilutive effect of share options

 


943,292

358,036


725,221

Diluted weighted average number of shares, excluding own shares, in issue

41,105,705

41,090,471

 

40,966,020

 




Six months ended 30 September


Year ended 31 March

 





2022

2021


2022




 

Pence per share

Pence per share


Pence per
share

Basic (loss)/earnings per share

(3.35)p

(0.69)


4.21

Diluted (loss) /earnings per share

 


(3.35)p

(0.69)


4.14

Adjusted Basic (loss)/earnings per share

 


(4.49)p

0.23


7.24

Adjusted Diluted (loss)/earnings per share



(4.49)p

0.22


7.11

 

 

6. Trade and other receivables




Six months ended 30 September


Year ended 31 March

 





2022

2021


2022




 

£'000

£'000


£'000

Trade receivables

 


1,827

1,145


24,992

Other debtors

 


128

116


66

Prepayments



620

584


670

Accrued income



1,582

2,706


1,657

 

 

4,157

4,551

 

27,385

 

 

7.  Trade and other payables

 




Six months ended 30 September


Year ended 31 March

 





2022

2021


2022




 

£'000

£'000


£'000

Trade payables

 


163

609


840

Other taxes and social security

 


227

59


396

Other creditors

 


466

160


1,239

Contingent consideration



500

500


500

Accruals



2,554

957


4,169

 

 

3,910

2,285

 

7,144

8. Dividends




Six months ended 30 September


Year ended 31 March

 





2022

2021


2022




 

£'000

£'000


£'000

Amounts recognised as distributions to equity holders




 

Final dividend for the year ended 31 March 2022 of 2.07p (2022: 2.0p)

 


831

-


-

Final dividend for the year ended 31 March 2021 of 2.0p (2021: 1.9p)

 


-

805


805

Interim dividend for the year ended 31 March 2022 of 0.85p (2021: 0.81p)



-

-


342


831

805

 

1,147



A special dividend of 12.5p per share was paid on 27 October 2022 to shareholders on the register as at 7 October 2022.

An interim dividend of 0.88p per share will be paid on 12 January 2023 to Members on the Register as at 9 December 2022. The shares will become ex-dividend on 8 December 2022.

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