9 January 2023

DeepVerge PLC

("DeepVerge" or "the Company" or "the Group")

2022 Revenue Update

DeepVerge plc (AIM: DVRG), announces that the Company's unaudited revenues for 2022 were approximately £17.2m, slightly below market expectations, although £18m would have been achieved but for a significant element of recently signed contracts now falling for delivery in the current year. This still represents a significant increase year on year (2021 Revenue (audited) £9.3m, 2020 Revenue (audited) £4.4m) despite some delays into 2023 due to supply chain issues. Licence revenues featured strongly as the Group moves progressively from small and medium ticket equipment sales to larger £1m+ data and AI focused sales through partners.

For the past 24 months, Modern Water, a business unit of DeepVerge, has been focused on building high-value solutions for monitoring water and wastewater using advanced software and data automation underpinned by its established equipment range. 

In addition, the Company is moving its Labskin business deeper into data and AI with the creation of Skin Trust Club, with its focus on a personalised skincare platform for partners and building a large skin microbiome database for its corporate customers.

These moves are in parallel with a refocusing of the business on tier-one partnerships that sell and support DeepVerge solutions in their core markets where they are dominant or major participants.

This has led to significant contracts and order book with a wide range of government institutions in multiple territories. These include US Government agencies, IARPA, NOAA, and Georgia Port Authority in the United States where DeepVerge is focusing Labskin, Skin Trust Club and environmental microbiome sequencing efforts. The Modern Water business is increasingly focused on the developing world with business and multiple orders across the Middle East, China, South and Central Asia and North Africa providing solutions in markets that are under pressure from pollution and water scarcity.

The accelerated Group restructuring announced on 22 November 2022 has created separate businesses with clear domain focus, with the personnel and resources necessary to support the growth being experienced and anticipated.  The restructuring also brought certain key logistical processes in-house, better to serve customers and partners and to protect against worldwide supply chain shocks. As well as focus, this restructuring is also expected to deliver considerable cost savings in 2023 of up to £2m.

Dr Nigel Burton, interim CEO DeepVerge plc, commented:

"The Group's major achievements of 2022 were:

·      Intensifying the focus on bigger ticket, higher value, technology and data-based sales;

·      Gaining the confidence of partners and their customers to use our solutions;

·    Putting in place the personnel and resource structures needed to support and develop this type of expanding business; and

·      Bedding in reference sites across the globe which showcase the solutions we can deliver to customers.

These achievements, and the successful fund raise in November 2022, provide solid foundations for 2023. I'd like to thank our shareholders, customers, partners and employees for their support in 2022."

Market Abuse Regulation (MAR) Disclosure

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED.  ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

About DeepVerge plc (www.deepverge.com)

DeepVerge is an environmental and life science group of companies that develops and applies AI and IoT technology to analytical instruments for the analysis and identification of bacteria, virus and toxins; Utilising artificial intelligent data analytics to scientifically prove the impact of skincare product claims on skin.