RNS Number : 5227I
Induction Healthcare Group PLC
05 December 2022
 

Induction Healthcare Group PLC

("Induction", the "Company", or the "Group")

 

Unaudited Interim Results

for the six months ended 30 September 2022

 

Induction Healthcare (AIM: INHC), a leading digital health platform driving transformation of healthcare systems , announces its unaudited interim results for the six months ended 30 September 2022, a period of continued revenue growth driven by the Company's leading position providing products to support the digitization of healthcare delivery.

 

Induction's products power remote consultations, capture patient reported data and empower patients to self-manage their care pathway. They are designed around the needs of the patient and deliver cost and efficiency benefits to hospitals, regional care systems and governments. Used at scale by national and regional healthcare systems, Induction's applications are relied upon by hundreds of thousands of clinicians and millions of patients across almost every hospital in the British Isles.

 

Financial Highlights

·    Recorded Revenues up 54% to £7.1m (H1 2021: £4.6m) with organic growth across key products

-      Induction Attend Anywhere revenues £5.6m (H1 2021: £3.6m)

-      Induction Zesty revenue £1.1m (H1 2021: £0.6m)

·    Adjusted EBITDA loss of £1.0m (H1 2021: £0.7m)

·    Annual Recurring Revenues ("ARR") at period end of £14.5m up from £13.5m at the start of H1 2022

·    Cash position as at 30 September 2022 of £9.0m (31 March 2022: £7.5m)

 

Operational Highlights

·    Strong start to the financial year with better-than-expected Induction Attend Anywhere renewals across NHS England

·    Value Added Reseller agreement signed with System C for Induction Zesty

·    Induction Zesty contracts with 8 further hospitals in England, building on the previously announced contract win with 4 hospitals in South West London

·    Christopher Samler appointed as Non-Executive Chairman

 

James Balmain, CEO of Induction, said: "We are confident that the business is well-positioned to deliver continued revenue growth from its core products, Induction Attend Anywhere and Induction Zesty. It is however apparent that the rate of growth this year will be impacted by the delays we've seen in the implementation of centrally funded digitisation programmes and the general political turmoil of recent months. We don't expect to see these opportunities drop away, rather they are now more likely to conclude next financial year.

 

"Despite these headwinds, we remain confident that overall year end revenues will show an improvement of at least 75% against our year end 31 March 2022 recognised revenues of £7.9m and we expect to grow our recurring revenues by at least 23% year on year. Both of these key metrics, whilst encouraging, are lower than our expectation and as a result the business is heavily focussed on underlying profitability and cash. We have initiated programmes internally to ensure our business is sized correctly to capture growth and to ensure that we do not have to raise further working capital pending reaching our objective of cash-flow breakeven by the fourth quarter of next financial year.

 

"Nothing has changed in terms of the critical need to further advance the digital transformation of the NHS, and in particular to drive efficiencies and support the reduction of extended waiting times. The strategic pillars for growth, as described in our recently published Annual Report remain as relevant as before and we remain confident about the future prospects of the Group."

 

Investor Presentation

The Company will be hosting a live online presentation via the Investor Meet Company platform at 4pm (GMT) today. The presentation is open to all existing and potential shareholders.

 

Investors can sign up to Investor Meet Company for free and register for the presentation here:

https://www.investormeetcompany.com/induction-healthcare-group-plc/register-investor.

 

A recording of the presentation, a PDF of the slides used, and responses to the Q&A session will be available on the Investor Meet Company platform and the Company's investor website afterwards.

 

ENQUIRIES

 

Induction

James Balmain, Chief Executive Officer

Christopher Samler, Chair

Via Walbrook PR Ltd: induction@walbrookpr.com


 

Singer Capital Markets (Nominated Adviser and Broker)

+44 (0)20 7496 3000

Philip Davies / Kailey Aliyar

 


 

Walbrook PR Ltd 

induction@walbrookpr.com

Paul McManus / Alice Woodings

Mob: +44 (0)7980 541 893 / +44 (0)7407 804 654

 

 

About Induction - www.inductionhealthcare.com

 

Induction (AIM: INHC) Induction delivers a suite of software solutions through a single integrated platform that transforms care delivery. Our system-wide applications help healthcare providers and administrators to deliver care at any stage remotely as well as face-to-face - giving the communities they serve greater flexibility, control and ease of access. Purpose-built for integration with leading Electronic Medical Record (EMR) platforms, our products offer immediate stand-alone value that becomes even greater when integrated with pre-existing systems.

 

Used at scale by national and regional healthcare systems, as well non-health government services, our applications are relied upon by hundreds of thousands of clinicians and millions of patients across almost every hospital in the British Isles. 

 

 


CEO REVIEW

 

Overview

Over the last six months we have seen continued year-on-year revenue growth from our Induction Zesty patient engagement platform and maintained strong annually recurring revenue from our Induction Attend Anywhere video consultation platform, building on a successful renewal of key NHS England contracts at the start of the year.

 

The need to continue the digital transformation of the NHS remains as strong as ever. Despite recent political and economic turmoil in the UK, delivering this transformation is still very much a key focus for the Government and NHS bodies across the UK. There is committed funding to support the roll-out of software that will help reduce NHS waiting lists.

 

However, the allocation of this central capital to fund key digital programmes has been slower than expected. Central funding and policy guidance is now in place to drive all hospitals in England to have suitable patient engagement platforms in place by the end of March 2023. This has had the net effect of deferring some expected contract wins and their associated revenue into next financial year.

 

Induction is well positioned to receive new contracts as a result of this funding:

·    Induction Attend Anywhere is the leading hospital video consultation platform throughout NHS England

·    Induction Zesty's selected as one of the first four patient engagement platforms to be directly integrated into the NHS App

·    To qualify for central funding NHS Trusts have been strongly encouraged to procure those platforms that have integrated into the NHS App

·    Induction's unique Value Added Reseller Agreements with both Oracle Cerner and System C for Induction Zesty allows Induction to exclusively capture separate funding made available for upgrades to hospital EMR systems.

 

H1 performance

Overall recorded revenues for the first half showed an improvement of just over 54% to £7.1m (H1 2021: £4.6m).

 

We continue to work closely with NHS Wales, NHS Scotland and the Scottish government in ensuring Induction Attend Anywhere continues to deliver a high quality service to the millions of users it serves. Looking ahead to the second half of this year, we remain confident in key H2 contract renewals with these customers.

 

We have seen some delays in the roll-out of Induction Attend Anywhere in relation to the Department of Work and Pensions (DWP) contract announced in November 2021 as we seek to meet changing platform requirements from the DWP. Completion of these platform updates will be required before the DWP can make the platform available to a wider range of departments, a key driver of increased revenue.

 

As announced in April, the South West London ICS, comprising four NHS Acute Trusts, signed up to deploy Induction Zesty to support their outpatient transformation programme. Building on this, eight further hospitals have been signed as at 30 September. Induction Zesty revenues nearly doubled to £1.1m (H1 2021: £0.6m) and, for the reasons described above, we believe we will see further significant sales growth in Induction Zesty sales in the second half and through into the next financial year, albeit at a slower rate than originally anticipated.

 

Other Induction products (our clinical apps Induction Guidance and Induction Switch) delivered revenues of £0.4m (H1 2021: £0.3m). As we've stated in our Annual Report, given the relatively minor contribution of these clinical apps to overall group revenues, as well as their cost base, we are considering the future role of clinical apps within the group.

 

At the period end, the Group recorded £14.5m of annual recurring revenue (compared to £13.5m at the start of H1 2022) with recurring revenue for the period accounting for over 90% of total revenues.

 

In the first half we recorded an adjusted EBITDA loss of £1.0m (H1 2021: £0.7m).

 

Cash position

The Group ended the first half with cash on hand of £9.0m (31 March 2022: £7.5m). 

 

We currently expect revenue for the full year to be approximately £3m lower than forecast. In addition, we expect cost escalations of £0.9m relating to increased hosting costs (AWS) and adverse foreign exchange movements versus the US Dollar which is the payment currency of many of our IT services. To offset this, the business is conducting an immediate review of its expenditure to align with the current and expected future growth of our public sector customer base. These and other related savings will be material and are to be initiated forthwith, although the benefits are not expected to fully flow through until the first half of next financial year.

 

The majority, by value, of our main Induction Attend Anywhere contracts renew at the end of March. We therefore receive significant cash inflows during April and May. A notable feature of the recent upheaval across public sector finance is a move towards fewer advance payments and a trend towards quarterly payments. These two trends further underline the need to tightly manage our expenditure, enforce our contractual payment terms more rigorously and drive the business towards profitability. The Group considers that it should give more prominence to adjusted operating income (free cash flow) which will provide investors with a clearer view of cash generation from operations.

 

Whilst we currently do not foresee a need for further working capital, it is not yet possible to fully quantify the value and timing of our major contracts or the cadence of their cash inflows. The Group intends to update its guidance on this metric, providing investors with additional clarity in due course. In the meantime, we recognise the need to take a conservative approach to cash and cash management.

 

Board Changes

 

During the first half we announced a number of Board changes as part of the natural evolution of the business. In May 2022 Dr Hugo Stephenson returned to the Non-executive Director role he originally held on admission to AIM in May 2019, and in July 2022 we announced the appointment of Christopher Samler as Non-Executive Chairman and the executive team are delighted to benefit from their combined experience and support as we drive the business forward.

 

Ian Johnson has been appointed to the Board as the Senior Independent Director ('SID') replacing Leslie-Ann Reed who will be stepping down following completion of her three-year term. Ian brings over 30 years of Board experience working with quoted and private companies in the Life Sciences space, having spent a career providing strategic direction and business development expertise. He has a proven track record of overseeing business growth and providing commercial advice through scale-up, organic growth and M&A activity. 

 

More recently, Guy Mitchell has stepped down as the company CFO and is replaced by John Mcintosh as Interim CFO. The board will commence a process to recruit a permanent CFO.

 

 

 

James Balmain

Chief Executive Officer

 

Condensed Income Statement (Unaudited)

For the six months ended 30 September 2022

 


 

 

30 September 2022

 

30 September 2021


 

 

Unaudited 

 

Unaudited


Note

 

£'000

 

£'000

Revenue from contracts with customers

2


7,118


4,593

Cost of sales



(2,414)


(997)

Gross Profit

 

 

4,704

 

3,596

Sales and marketing expenses

3


(821)


(514)

Development expenses

3


(4,159)


(2,711)

Administrative expenses

3


(4,237)


(5,959)

Operating loss

 

 

(4,513)

 

(5,588)

Finance Costs

 


(4)


(12)

Finance Income



-


-

Loss before tax

 

 

(4,517)

 

(5,600)

Taxation



(311)


(404)

Loss for the financial period

 

 

(4,828)

 

(6,004)







Attributable to:






Equity holders of the parent



(4,828)


(6,004)



 

(4,828)

 

(6,004)







Loss per share from operations






- Basic

4


(0.06)


(0.08)

- Diluted

4


(0.06)


(0.08)

 

 

Condensed Consolidated Statement of Comprehensive Income (Unaudited)

For the six months ended 30 September 2022

 



30 September

2022

 

30 September

2021



Unaudited

 

Unaudited


Note

£'000

 

£'000

Loss for the period


(4,828)

 

(6,004)

 





Other comprehensive income





Items that may be reclassified to profit or loss





Foreign currency translation differences


457


(59)

Reclassified to profit and loss during the period


(801)


9

Other comprehensive income for the financial period


(344)

 

50

 





Total comprehensive loss for the financial period


(5,172)

 

(6,054)






Attributable to:





Equity holders of the parent


(5,172)


(6,054)



(5,172)

 

(6,054)











Loss per share:





Basic loss per share (£)

4

(0.06)


(0.08)

Diluted loss per share (£)

4

(0.06)


(0.08)

 

 

Unaudited Condensed Consolidated Statement of Financial Position

As at 30 September 2022

 

 

 

30 September

2022

 

31 March

2022

 

 

Unaudited

 

Unaudited

 

Note

£'000

 

£'000

Non-current assets





Goodwill

6

19,758


19,758

Intangible Assets

6

20,213


20,962

Property, Plant and Equipment


213


244

Deferred tax assets


1,549


1,540

 

 

41,733

 

42,504

Current assets





Trade and other receivables

7

3,543


3,349

Contract Assets

2

2,090


787

Current tax receivable


1,208


1,240

Cash and cash equivalents

7

8,978


7,495

 

 

15,819

 

12,872

Total assets


57,552

 

55,376

 





Non-current liabilities




Contract liabilities

2

(310)


(326)

Deferred tax liabilities

2

(5,833)


(5,851)

Other financial liabilities

2

(170)


(128)

 

 

(6,313)

 

(6,305)

Current liabilities





Trade and other payables

8

(4,316)


(3,365)

Contract liabilities


(8,944)


(2,580)

Current tax payable


(833)


(789)

Other financial liabilities


-


(73)

 

 

(14,093)

 

(6,806)

Total liabilities


(20,406)

 

(13,111)

Net assets/(liabilities)


37,146

 

42,265






Equity attributable to equity holders of the parent





Share capital

9

471


460

Share premium

9

41,665


41,665

Translation reserve

9

457


801

Other reserves

9

1,447


1,405

Merger reserve

9

20,206


20,206

Accumulated deficit


(27,100)


(22,272)

 Total equity


37,146

 

42,265


Unaudited Condensed Consolidated Statement of Changes in Equity

For the six months ended 30 September 2022

 


Share

Share

Translation

Other

Merger

Accumulated

Total


Capital

Premium

reserve

reserve

reserve

deficit

equity


£'000

£'000

£'000

£'000

£'000

£'000

£'000

Balance at 1 April 2022

460

41,665

801

1,405

20,206

(22,272)

42,265

 








Total comprehensive loss for the period








Loss for the period

-

-

-

-

-

(4,828)

(4,828)

Other comprehensive loss for the period

-

-

(344)

-

-

-

(344)

Total comprehensive loss for the period

-

-

               (344)

-

-

(4,828)

(5,172)

Transactions with owners, in their capacity as owners








Issue of ordinary shares

11

-

-

(204)

-

-

(193)

Issue of ordinary shares as consideration for a business combination

-

-

-

-

-

-

-

Equity-settled share-based payments

-

-

-

246

-

-

246









Total contributions by and distributions to owners

               11

        -

               -  

               42

             -

                  -

     53

Balance at 30 September 2022

             471

        41,665

               457

               1,447

20,206

           (27,100)

     37,146

 

 

 

 

 

 

 

 



 

Unaudited Condensed Consolidated Statement of Changes in Equity

For the six months ended 30 September 2022

 


Share

Share

Translation

Other

Merger

Accumulated

Total


Capital

Premium

reserve

reserve

reserve

deficit

equity


£'000

£'000

£'000

£'000

£'000

£'000

£'000

Balance at 1 April 2021

210

18,432

(9)

792

10,879

(13,838)

16,466

 








Total comprehensive loss for the period








Loss for the period

-

-

-

-

-

(6,004)

(6,004)

Other comprehensive loss for the period

-

-

(50)

-

-

-

37

Total comprehensive loss for the period

-

-

               (50)

-

-

(6,004)

(6,004)

Transactions with owners, in their capacity as owners








Issue of ordinary shares

179

24,821

-

-

-

-

25,000

Issue of ordinary shares as consideration for a business combination

71

-

-

-

8,928

-

9,000

Equity-settled share-based payments

-

-

-

332

-

-

332









Total contributions by and distributions to owners

               250

        28,821

               -  

               332

             8,928

                  -

     34,332

Balance at 30 September 2021

             460

        43,253

               (59)

               1,124

19,807

           (19,842)

     44,747

 

 

 

 

 

 

 

 

 


Unaudited Condensed Consolidated Statement of Cash Flows

For the six months ended 30 September 2022

 

 

 

For the period ended

 

For the period ended

 

 

30 September 2022

 

30 September 2021

 

 

£'000

 

£'000

Cash flows from operating activities





Loss for the financial period


(4,828)


(6,004)

Adjustments for:





Depreciation of property, plant and equipment


39


4

Amortisation and impairment of intangible assets


2,363


1,569

Finance costs


4


12

Finance income


-


-

Share-based payment expense


246


332

Net foreign exchange differences


-


49

Fair value adjustment of contingent consideration


-


-

Net loss arising on fair value adjustments of deferred income


-


1,742

Taxation


311


404



2,963


4,112

Decrease / (Increase) in trade and other receivables and contract assets


(1,500)


3,911

(Decrease) / Increase in trade and other payables and contract liabilities


7,303


(1,491)

Interest received


-


-

Interest paid


(4)


(12)

Income taxes received


44


-

Income taxes paid


(288)


(404)

Net cash generated from / (used in) operating activities


3,690


112

Cash flows from investing activities





Payments for acquiring businesses, net of cash acquired


-


(13,486)

Payment of software development costs


(1,615)


(1,207)

Acquisitions of property, plant and equipment


(5)


-

Net cash from investing activities

 

(1,620)


(14,693)

Cash flow from financial activities

 

 

 

 

Repayments of loans and borrowings


-


-

Share issue costs


-


-

Share issue proceeds


(194)


25,000

Net cash from financing activities

 

(194)


25,000

Net increase in cash equivalents

 

1,876


10,419

Cash and cash equivalents at the beginning of the financial period


7,495


2,472

Effects of exchange rate changes on cash and cash equivalents


(393)


(49)

Cash and cash equivalents at the end of the financial period


8,978


12,842

 

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

 

1. Accounting Policies

 

1.1 Reporting entity

Induction Healthcare Group PLC ("Induction", the "Group" or the "Company") is publicly listed on the AIM market of the London Stock Exchange ("LSE"), and incorporated, domiciled and registered in the United Kingdom. The registered number is 11852026 and the registered address is 20 St. Dunstan's Hill, London, United Kingdom, EC3R 8HL. Induction is a leading healthcare technology company helping to streamline delivery of care by providing software to healthcare professionals.

 

As of 30 September 2022, Induction Healthcare Group PLC comprised of nine legal subsidiaries, that are majority owned and controlled, and therefore fully consolidated in the Company's consolidated financial statements. Details of the Company's subsidiaries are included in note 5.

 

1.2 Basis of preparation

These interim financial statements have been prepared and approved by the directors in accordance with International Financial Reporting Standards ("Adopted IFRSs"). They do not include all the information required for a complete set of IFRS financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the most recent annual consolidated financial information included in the annual report and accounts as of and for the year ended 31 March 2022.

 

The accounting policies applied are consistent with those applied in the most recent consolidated annual report and accounts for the year ended 31 March 2022, which are available on the Company's website at www.inductionhealthcare.com under "Investors - Financial reports & publications."

 

Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtained control and continue to be consolidated until the date when such control ceases. The financial information of the subsidiaries is prepared for the same reporting period as the Group, using consistent accounting policies. All intra-group balances, transactions, unrealised gains and losses resulting from intra-group transactions are eliminated in full.

 

Changes in the Group's interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.

 

When the Group loses control over a subsidiary, the assets and liabilities are derecognised along with any related non-controlling interest and other components of equity.  Any resulting gain or loss is recognised in profit or loss.  Any interest retained in the former subsidiary is measured at fair value when control is lost.

 

These interim condensed consolidated financial statements are unaudited and were approved by the Board of Directors and authorised for issue on 5 December 2022 and are available on the Company's website at www.inductionhealthcare.com under "Investors - Financial reports & publications".

 

 


 

 

 

2. Revenue

 

2.1 Revenue by performance obligations



Period to 30 September 2022

 

Period to 30 September

2021



£'000

 

£'000

Provision of software


 6,296


4,382

Post-contract support and maintenance


 103


76

Set-up services


 30


3

Professional services


 492


-

Text message revenue


 197


132

Total Revenue from contracts with customers

 

7,118

 

4,593

 

2.2 Revenue by geographical location



Period to 30 September

2022

 

Period to 30 September

2021



£'000

 

£'000

United Kingdom


 7,086


4,528

Europe


 7


6

United States


 9


8

Rest of World


 16


51

Total Revenue from contracts with customers

 

7,118

 

4,593

 

2.3 Revenue by product line



Period to 30 September

2022

 

Period to 30 September

2021



£'000

 

£'000

Induction Anywhere


5,600


3,638

Induction Zesty


1,162


617

Induction Guidance


340


322

Induction Switch


16


16

Total Revenue from contracts with customers

 

7,118

 

4,593

 

2.4 Timing of revenue recognition



Period to 30 September

2022

 

Period to 30 September

2021



£'000

 

£'000

Services transferred over time


6,628


4,451

Services transferred at a point in time


490


142

Total Revenue from contracts with customers

 

7,118

 

4,593

 



 

 

2.5 Contract balances



30 September 2022

 

31 March

2022



£'000

 

£'000

Trade receivables


2,121


1,039

Contract assets


2,090


399

Contract liabilities


(9,254)


(2,657)

 

 

3. Expenses by nature



Period to 30 September

2022

 

Period to 30 September

2021



£'000

 

£'000

Employee benefit expense


4,810


3,444

Contractors


1,858


1,520

Fundraise and acquisition related transaction costs


-


1,613

Amortisation of intangible assets


2,363


1,568

Depreciation of property, plant and equipment


39


4

Professional and legal fees


251


56

Research and development expense capitalised


(1,615)


(1,207)

Remeasurement of contingent consideration


-


-

Fair value adjustments on contract liabilities


-


1,742

 

 

4. Earnings per share

Basic EPS is calculated by dividing the profit for the year attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year.

 

Diluted EPS is calculated by dividing the profit attributable to ordinary equity holders of the parent (after adjusting for interest on the convertible preference shares) by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.

 

The following table reflects the income and share data used in the basic and diluted EPS calculations:

 

Loss attributable to ordinary shares (basic and diluted)

 



30 September

2022 

 

30 September

 2021



£'000

 

£'000

Loss attributable to ordinary shares (basic and diluted)


(4,828)


(6,004)



(4,828)

 

(6,004)

 



 

Weighted average number of ordinary shares (basic and diluted)

 



Period to 30 September 2022

 

Period to 30 September 2021

Shares in issue on 1 April

 

92,050,727

 

42,050,728

Shares issued


248,089


35,714,285

Shares issued in a business combination


-


14,285,714

Issued ordinary shares as at the end of the period


92,298,816


92,050,727

Weighted-average number of ordinary shares (basic and diluted)


73,413,131


72,925,044






Basic loss per share


(0.06)


(0.08)

Diluted loss per share


(0.06)


(0.08)

 

 

5. Investments in subsidiaries

 

Company

Registered number

Principal activities

Country of incorporation

Ownership

30 September 2022

31 March 2022

Induction Healthcare Limited

11232772

Investment Holding Company

United Kingdom

100%

100%

Induction Healthcare (UK) Limited

11237890

Provision of software to healthcare providers

United Kingdom

100%

100%

Induction Healthcare Pty Ltd

625119397

Provision of software to healthcare providers

Australia

100%

100%

Podmedics Limited

6840040

Dormant

United Kingdom

100%

100%

Horizon Strategic Partners Limited

6285278

Provision of software to healthcare providers

United Kingdom

100%

100%

Zesty Limited

08294659

Provision of software to healthcare providers

United Kingdom

100%

100%

Attend Anywhere Pty Ltd

081211707

Provision of software to healthcare providers

Australia

100%

100%

Attend Anywhere Limited

11883931

Provision of software to healthcare providers

United Kingdom

100%

100%

A.C.N. 167 231 307 Pty Ltd

167231307

Investment Holding Company

Australia

100%

100%

 



 

6. Goodwill and intangible assets

 


Goodwill

Technology

Users

Tradename

Development costs

Total


£'000

£'000

£'000

£'000

£'000

£'000

Cost






 

Balance at 31 March 2022

20,175

7,972

9,460

633

9,442

47,682

Recognised on acquisitions

-

-

-

-

-

-

Internally developed

-

-

-

-

1,615

1,615

Translation differences

-

-

-

-

-

-

At 30 September 2022

20,175

7,972

9,460

633

11,057

49,297

 

Amortisation







Balance at 31 March 2022

418

1,532

1,386

144

3,482

6,962

Recognised on acquisitions

-

-

-

-

-

-

Provided during the year

-

719

645

31

968

2,363

Translation differences

-

-

-

-

-

-

At 30 September 2022

418

2,251

2,031

175

4,450

9,325







 

Net book value

 

 

 

 

 

 

At 31 March 2022

19,757

6,440

8,074

489

5,960

40,720

At 30 September 2022

19,757

5,721

7,429

458

6,607

39,972

 

7. Trade and other receivables



30 September 2022


31 March

2022



£'000


£'000

Receivables from third-party customers


2,880


2,900

Other receivables


210


116

Prepayments


373


251

Social security and other taxes receivable


80


82



3,543

 

3,349

Allowance for credit losses


-

 

-



3,543

 

3,349

 

Trade receivables are non-interest bearing and are generally on terms of 30 days. Included within trade and other receivables is £nil expected to be recovered in more than 12 months.

 

Cash and cash equivalents



30 September 2021

 

31 March

2022



£'000

 

£'000

Cash at banks and on hand


8,978


             6,995

Short-term deposits


-


500

Cash and cash equivalents per the statement of financial position and cash flow statement

 

 

8,978

 

 

7,495

 

Cash at banks earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made on a weekly basis, depending on the immediate cash requirements of the Group, and earn interest at the respective short-term deposit rates.

 

8. Trade and other payables



30 September

2022


31 March 2022



£'000


£'000

Trade payables


833


901

Accruals


1,864


1,680

Social security and other taxes


230


238

Other payables


1,389


108

Current tax payable


833


765



5,149


3,692

 

Included within trade and other payables is £nil expected to be settled in more than 12 months.

 

All trade and other payables are non-interest bearing and are normally settled on 30 day terms.

 

9. Capital and Reserves

 

9.1 Share Capital


2022

 

2021

 


No. of shares ('000)

£'000

No. of shares ('000)

£'000          

In issue at 1 April

92,051

460

42,051

210

Issue of ordinary shares as consideration for a business combination

-

-

14,286

71

248

1

35,714

179

In issue at 30 September

92,299

461

92,051

460

 

9.2 Share Premium


2022

 

2021


£'000

 

£'000


 

 

(Restated)

At 1 April

41,665


18,432

Issue of ordinary shares as consideration for a business combination

-


23,223

At 30 September

41,665

 

41,665

 

9.3 Merger Reserve


2022

 

2021


£'000

 

£'000


 

 

(Restated)

At 1 April 2022

20,206


10,879

Issue of ordinary shares as consideration for a business combination

-


9,327

Transaction costs on issue of shares

-


-

At 30 September 2022

20,206

 

20,206

 

During the completion of the annual report and accounts for 31 March 2022, amounts recognised in share premium that related to the issuance of ordinary shares as consideration for a business combination were reclassified to the merger reserve. Management have therefore restated the amounts presented for the merger reserve and for the share premium for the 6 months ended 30 September 2021 to reflect this.

 

10. Related Parties

 

Transactions with key management personnel

 

The compensation of key management personnel (directors) is as follows:

 

 

30 September 2022

 

30 September 2021

 

£'000

 

£'000

Short-term employee benefits

338


384

Post-employment pension and other benefits

8


6

Termination benefits

-


-

Share based payment transactions

123


123





Key management remuneration including social security costs

469

 

513

Total compensation paid to key management personnel

469

 

513

 

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