TIDMAQX
RNS Number : 1316N
Aquis Exchange PLC
21 September 2023
21 September 2023
Aquis Exchange PLC
("Aquis", the "Company" or the "Group")
Interim results for the six months ended 30 June 2023
Continued momentum with increased revenue across all
divisions
Aquis Exchange PLC (AQX.L), the creator and facilitator of
next-generation financial markets, is pleased to announce its
unaudited results for the six months ended 30 June 2023.
Highlights:
-- Net revenue up 17% to GBP9.7m (H122: GBP8.3m)
-- EBITDA up 26% to GBP1.7m (H122: GBP1.3m)
-- Profit before tax up 64% to GBP1.1m (H122: GBP0.7m)
-- Basic earnings per share 3.8p (H122: 2.5p)
-- Cash and cash equivalents of GBP13.9m (H122: GBP13.3m)
-- All four divisions were profitable in the period:
o Aquis Markets - Further diversification of the product suite, with addition of Dark to Lit
Sweep
o Aquis Technologies - Contract pipeline continues to develop in line with expectations
o Aquis Data - Revenues up 34%; significant progress towards an EU consolidated tape
o Aquis Stock Exchange - Welcomed five new listings despite tough market conditions and low
admissions throughout the market
Post-period highlights:
-- Change to Aquis' proprietary trading rule announced, further enhancing range of execution
options available to members
-- Investment in OptimX Markets adds additional connectivity to Aquis Matching Pool (AMP) and
provides clients with ability to cross large blocks
Aquis CEO, Alasdair Haynes said:
"2023 so far has been a year of continued momentum for Aquis,
with revenues continuing to increase across all divisions.
"Following the successful integration of the Aquis Matching Pool
in 2022, Aquis Markets has seen increased revenues. We have also
worked to further diversify the products that will be made
available to members, adding block trading via OptimX Markets and
changing our proprietary trading rule to give members greater
execution choice along with best execution outcomes. These changes
are laying the foundations for future growth in market share over
the medium-term.
"Our technology contract pipeline has continued to develop as
expected, with a renewal and an extension over the period
demonstrating the long-term nature of these relationships.
"Within Aquis Data, we were pleased to see significant progress
towards an EU consolidated tape during the period, which is likely
to disproportionately benefit Aquis.
"And finally despite challenging market conditions, we remain
positive on the long-term potential of the Aquis Stock Exchange ,
which remains profitable.
"With economic uncertainty continuing to affect all market
participants, we are pleased to be delivering continued growth,
strategic progress and value for shareholders. We have had a
positive start to 2023, with continued revenue growth across all
divisions and trading remains in line with Board expectations for
the full year."
An overview of the results from Alasdair Haynes is available to
view on this link.
The Group will be hosting webinars for analysts and retail
investors today at 9.30 and 16.00 respectively.
If you would like to register for the analyst webinar, please
contact aquis@almapr.co.uk . Investors who would like to attend the
retail investor webinar can sign up to Investor Meet Company for
free and add themselves to the meeting via
https://www.investormeetcompany.com/aquis-exchange-plc/register-investor
. Investors who have already registered will be automatically
invited.
Enquiries:
Aquis Exchange PLC Tel: +44 (0)20 3597
6321
Alasdair Haynes, CEO
Richard Fisher, CFO Tel: +44 (0)20 3597
Adele Gilbert, Head of Marketing 6329
Investec Bank plc (Nominated Adviser and Tel: +44 (0)20 7597
Broker) 4000
David Anderson
Bruce Garrow
Lydia Zychowska
St John Hunter
Canaccord Genuity Limited (Joint Broker) Tel: +44 (0) 20 7523
Emma Gabriel 8000
George Grainger
VSA Capital Limited (AQSE Corporate Adviser)
Andrew Raca Tel: +44(0)20 3005
5000
Alma PR (Financial PR Adviser) Tel: +44 (0)20 3405
0209
Josh Royston aquis@almapr.co.uk
Rebecca Sanders-Hewett
Kieran Breheny
Notes to editors:
About Aquis Exchange PLC
Aquis Exchange PLC ("Aquis") is a creator and facilitator of
next-generation financial markets, through the provision of
accessible, simple and efficient stock exchanges, trading venues
and technology .
Aquis consists of four divisions:
Aquis Markets operates lit and dark order books, covering 16
European markets. For its lit books, Aquis uses a subscription
pricing model which works by charging users according to the
message traffic they generate, rather than a percentage of the
value of each stock that they trade.
Aquis Technologies is the software and technology division of
Aquis. It focuses on building better markets via the creation and
licensing of cutting-edge, cost-effective exchange infrastructure
technology and services, including matching engine and trade
surveillance solutions.
Aquis Stock Exchange (AQSE) is a stock market providing primary
and secondary markets for equity and debt products. It is
authorised as a Recognised Investment Exchange, which allows it to
operate a regulated listings venue. The AQSE Growth Market is
divided into two segments 'Access' and 'Apex' ; the Access market
focuses on earlier stage growth companies, while Apex is the
intended market for larger, more established businesses.
Aquis Data generates revenue from the sale of data derived from
Aquis Markets and Aquis Stock Exchange to non-Member market
participants.
Aquis is authorised and regulated by the UK Financial Conduct
Authority and France's Autorité de contrôle prudentiel et de
résolution and L'Autorité des marchés f inanciers to operate
Multilateral Trading Facility businesses in the UK &
Switzerland markets and in EU27 markets respectively. Aquis
Exchange PLC is quoted on the Aquis Stock Exchange and on the AIM
Market (AIM) of the LSE. For more information, please go to
www.aquis.eu .
Interim Report
The six months to 30 June 2023 has been another strong period of
profitable growth as revenues increase across all divisions , as we
build on our achievements in 2022. Alongside this, we have
continued to make good operational progress in all areas to expand
our market opportunity. Achieving this despite challenging economic
circumstances reflects our strong operational resilience and the
continued demand for our offering across all three divisions.
Operational Review
We have continued our planned investment in key business areas
such as growing our technology development team. These investments
enable us to maintain our internally used Aquis technology set and
support the ongoing growth in our technology licencing
business.
The performance of Aquis Markets has progressed well. Exchange
revenue increased by GBP0.8m (14%) from GBP5.1m to GBP5.9m. Since
Aquis Matching Pool (AMP) was launched in 2022, trading volumes
have increased with a closing 0.76% market share by 30 June 2023
(0.84% at 30 December 2022) demonstrating the resilience of the
Aquis platform despite difficult market conditions.
The Aquis Technologies contract pipeline has developed in line
with expectations, and multiple renewals and/or extensions over the
period continues to demonstrate customer loyalty and stickiness of
revenue. The average maturity of a technology contract has
increased further to 3.4 years.
On Aquis Stock Exchange, issuer revenue increased by 29%,
reaching GBP0.8m as the number of admissions continues to grow
despite a generally challenging economic climate for raising
finance and a reduction in new issues. There are currently 104
securities on AQSE.
Aquis Markets
Continued revenue growth in the core business; ongoing success
of AMP despite challenging market conditions; foundations laid for
future market share gains through additional products and
innovative rule change
Aquis Markets is the Group's pan-European secondary trading
equities market. It comprises the UK MTF (AQXE) and the French MTF
serving EU markets (AQEU). Aquis Markets currently offers over
2,100 stocks and ETFs across 16 European markets. A significant
proportion of Markets activity is now being executed on AQEU, the
Group's French MTF serving EU markets.
Average market share in 1H23 was 5.1% (5.0% 1H22). Market
conditions remain challenging with lower lit market volumes across
the board, but in the period Aquis has continued to grow its
product offering with the introduction of our D ark to Lit Order S
weep functionality and also seen strong growth in our Auction on
Demand (AoD) product.
Aquis Matching Pool: Following the acquisition of the business
assets comprising the UBS MTF, Aquis has seen pleasing levels of
activity with the number of members and levels of trading
experienced to date growing from those seen at acquisition, with
Management confident of future opportunities to grow.
Post-period end, Aquis Markets announced a change to the
proprietary trading rule on its UK and EU trading platforms. In
response to member demand, the rule change will allow liquidity
providers the option to choose if they wish to interact with
aggressive non-client proprietary trading or not; providing members
with greater choice and immediacy of execution. We expect this to
positively contribute to our growth in market share over the medium
term.
Aquis Technologies
Progress made on a number of projects with continuing revenues
from existing relationships
Aquis licenses its leading exchange-related technology through
its Aquis Technologies division. Aquis Technologies creates and
licenses technology for high volume, low latency trading platforms,
complex connectivity solutions and real-time trade monitoring and
surveillance systems for banks, brokers, investment firms and
exchanges.
Aquis recognises license revenue on completion of project
delivery in accordance with IFRS accounting standards , which can
lead to lumpy revenue recognition, period on period. Despite the
financial reporting requirements under revenue recognition
standards, these contracts provide consistent long-term cash
inflows for the business.
During 1H23 , significant progress was made on several projects,
namely where regulatory work had been completed on behalf of one
customer and additional licences were provided to another existing
customer. The work undertaken by the technologies team will pave
the way for further offerings in the future. As a result, net
revenues in the technology division have remained steady at GBP1.1m
in 1H23 (GBP1.1m in 1H22).
In Q1 2023 Aquis Equinox, the world's first 24/7, no downtime,
matching engine was launched, and the division continues to make
exciting progress in its cloud services offering which will not
only lead to future synergies within the Group's trading platforms,
but also for new and existing technology licencing customers.
Aquis Technologies currently has seven contracts, on which five
have recognised revenue. Management expects that revenue will be
recognised on one of the two remaining contracts in H2 2023.
Aquis Data
Aquis generates revenue from the sale of data derived from Aquis
Markets (AQXE & AQEU) and Aquis Stock Exchange to non-Member
market participants. The total number of market data customers by
30 June 2023 was 85.
Revenue from market data vendors increased significantly by
GBP0.5m (34%) to GBP1.8m for the six-month period compared to the
2022 equivalent, with continued growth in both terminal use and
non-display licences across the period.
The creation of a consolidated tape in both the UK and EU
presents opportunity for future revenue. There was progress made on
the EU consolidated tape during the period, with administrative
process to follow. The advent of an equities consolidated tape in
either jurisdiction would disproportionately benefit Aquis.
Aquis Stock Exchange (AQSE)
Momentum building despite wider slowdown in market activity
Aquis Stock Exchange is a modern market for modern businesses,
bringing positive disruption and competition to the listed SME
sector. As one of the only two existing options for growing SMEs
looking to IPO in the UK, Aquis' vision is for Aquis Stock Exchange
to become the home for quality growth businesses, applying core
Aquis values such as transparency and innovation.
Five admissions were completed during 1H23 (six at our principal
competitor) compared to 12 during 1H22. This was reflective of a
general slowdown in IPO activity across the market due to
challenging economic conditions.
All Aquis Stock Exchange IPOs were well supported and there is a
very strong pipeline of high growth and 'new economy'
businesses.
Having achieved profitability ahead of forecasts in 2022, it is
good to see the resilience of earnings with profitability
maintained despite challenging IPO market conditions.
Financial Review
Net revenue increased 17% to GBP9.7m (1H22: GBP8.3m) and the
EBITDA profit for the half year was GBP1.7m, a 26% increase on the
EBITDA profit of GBP1.4m generated in 1H22. This EBITDA profit and
the profit before tax of GBP1.1m includes GBP0.3m of income
recognised from an impairment credit per IFRS 9 consistent with the
1H22 impairment credit.
Divisional revenue:
6 months to 6 months to
June 2023 (GBP'000s) June 2022 (GBP'000s)
---------------------- ----------------------
Markets 5,869 5,112
Technologies 1,132 1,087
Data 1,840 1,376
Aquis Stock Exchange 832 699
---------------------- ----------------------
9,673 8,274
---------------------- ----------------------
EBITDA has improved with revenue growth ahead of the controlled
increase in costs during 1H 2023 and the back end of last year as
the Group continued to invest in personnel and technological
resources. The Group will continue to invest in the future to
maintain the business's growth momentum.
Operating costs have increased by 15% to GBP8.0m (H1 2022:
GBP6.9m) reflecting primarily increased headcount in the period as
well as inflation on both staff cost and data centre costs and
increased data costs. Aquis continues to seek and be able to
recruit top talent. A focus continues to be recruitment in the
development team, where a broadly stable proportion of costs is
capitalised and then amortised over three years reflecting the
ongoing value derived from these activity sets. Physical hardware
acquired is capitalised and depreciated over a three year useful
economic life. Other costs are recognised as operating in nature
and reflected in the P&L as incurred.
The Group continues to maintain a strong balance sheet and cash
equivalents at 30 June 2023 were GBP13.9m (30 June 2022: GBP13.3m
). The Group continues to generate cash above operational
requirement which has allowed the ongoing transfer of funds to the
Group Trusts which have purchased shares in support of the Group
share schemes.
Summary and Outlook
2023 so far has been a year of continued momentum for Aquis,
with revenues continuing to increase across all divisions.
Following the successful integration of the Aquis Matching Pool
in 2022, Aquis Markets has seen increased revenues. We have also
worked to further diversify the products that will be made
available to members, adding block trading via OptimX Markets and
changing our proprietary trading rule to give members greater
execution choice along with best execution outcomes. These changes
are laying the foundations for future growth in market share over
the medium-term.
Our technology contract pipeline has continued to develop as
expected, with a renewal and an extension over the period
demonstrating the long-term nature of these relationships.
Within Aquis Data, we were pleased to see here was significant
progress towards an EU consolidated tape during the period, which
is likely to disproportionately benefit Aquis.
And finally, despite challenging market conditions, we remain
positive on the long-term potential of the Aquis Stock Exchange ,
which remains profitable.
With economic uncertainty continuing to affect all market
participants, we are pleased to be delivering continued growth,
strategic progress and value for shareholders. We have had a
positive start to 2023, with continued revenue growth across all
divisions and trading remains in line with Board expectations for
the full year.
AQUIS EXCHANGE PLC
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE
SIX MONTHSED 30 JUNE 2023
6 months ended
30/06/2023 Year ended 31/12/2022 6 months ended 30/06/2022
Note GBP'000 GBP'000 GBP'000
Income Statement
Revenue 3 9,342 19,930 7,849
Impairment
credit/(charge) on
contract assets 4 331 132 425
Impairment credit /
(charge) on trade and
other receivables 4 - (13) 26
Administrative expenses (7,976) (14,239) (6,956)
Operating profit 1,697 5,810 1,344
Investment income 5 169 29 4
Depreciation and
amortisation 7,8 (672) (1,259) (627)
Net finance costs 19 (49) (53) (22)
Profit before taxation 1,145 4,527 699
Income tax
(charge)/credit 11 (99) 157 -
Profit after taxation 1,046 4,684 699
========================= ====================== ==========================
Other comprehensive
income
Items that may be
reclassified subsequently
to profit or loss:
Foreign exchange
differences on
translation of foreign
operations, net of tax 18 (37) 181 (42)
Other comprehensive loss for the
year (37) 181 (42)
Total comprehensive profit for
the year 1,009 4,865 657
========================= ====================== ==========================
Earnings per share
(pence)
Basic
Ordinary shares 6 3.8 17.0 2.5
Diluted
Ordinary shares 6 3.6 16.5 2.5
The consolidated statement of comprehensive income has been
prepared on the basis that all operations are continuing
operations.
AQUIS EXCHANGE PLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30
JUNE 2023
6 months ended
30/06/2023 Year ended 31/12/2022 6 months ended 30/06/2022
Note GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Goodwill 7 83 83 83
Intangible assets 7 1,253 1,032 772
Property, plant and
equipment 8 3,829 4,156 4,263
Deferred tax asset 10 1,594 1,594 1,292
Trade and other
receivables 9 5,938 5,352 4,714
12,697 12,217 11,124
Current assets
Trade and other
receivables 9 4,970 4,135 2,786
Cash and cash equivalents 13,905 14,171 13,320
18,875 18,306 16,106
Total assets 31,572 30,523 27,230
------------------------- ---------------------- --------------------------
Liabilities
Current liabilities
Trade and other payables 12 4,495 4,268 4,453
Non-current liabilities
Lease liabilities 19 2,667 2,875 3,214
Total liabilities 7,162 7,143 7,667
------------------------- ---------------------- --------------------------
Net assets 24,410 23,380 19,563
========================= ====================== ==========================
Equity
Called up share capital 13 2,752 2,751 2,751
Share premium account 14 11,810 11,785 11,780
Other reserves 15 2,320 1,813 1,860
Treasury shares 17 (3,798) (3,350) (3,001)
Retained earnings 16 11,363 10,317 6,332
Foreign currency
translation reserve 17 (37) 64 (159)
Total equity 24,410 23,380 19,563
========================= ====================== ==========================
The notes to the financial statements on pages 10 to 22 form an
integral part of these financial statements. The interim financial
statements were approved by the board of directors and authorised
for issue on 21 September 2023 and are signed on its behalf by:
R Fisher A Haynes
Director Director
AQUIS EXCHANGE PLC
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE
SIX MONTHSED 30 JUNE 2023
Note Share Share Other Treasury Retained Foreign Total
Capital Premium Reserves Shares Earnings Currency
Translation
Reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
January 2022 2,751 11,771 1,118 (1,527) 5,633 (117) 19,629
Profit for the
6-month
period ended
30/06/2022 699 699
Issue of new
shares 9 9
Movement in share
option reserve 742 742
Movement in treasury
shares (1,474) (1,474)
Foreign exchange
differences
on translation of
foreign operations (42) (42)
--------- --------- ---------- --------- ---------- ------------- --------
Balance at 30 June
2022 2,751 11,780 1,860 (3,001) 6,332 (159) 19,563
--------- --------- ---------- --------- ---------- ------------- --------
Profit for the 6 month period
ended
31/12/2022 3,985 4,180
Issue of new
shares 5 5
Movement in share option
Reserve (47) (47)
Movement in treasury shares (349) (349)
Foreign exchange differences
on translation of foreign
operations 223 28
--------- ---------- --------- ---------- ------------- --------
Balance at 31
December
2022 2,751 11,785 1,813 (3,350) 10,317 64 23,380
--------- --------- ---------- --------- ---------- -------------
Profit for the 6-month period
ended
30/06/2023 1,046 1,046
Issue of new
shares 13,14 1 25 26
Movement in
share
option
reserve 15 507 507
Movement in
treasury
shares 17 (448) (448)
Foreign
exchange
differences
on
translation
of
foreign
operations 18 (101) (101)
Balance at 30
June 2023 2,752 11,810 2,320 (3,798) 11,363 (37) 24,410
========= ========= ========== ========= ========== ============= ========
AQUIS EXCHANGE PLC
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX
MONTHSED 30 JUNE 2023
Note 6 months ended Year ended 31/12/2022 6 months ended
30/06/2023 30/06/2022
GBP'000 GBP'000 GBP'000
Cash flows from operating
activities
Cash generated/absorbed
by operations 20 1,101 3,962 1,082
Overseas tax paid (219) - -
Finance expense on lease
liabilities 19 49 53 22
Net cash inflow from operating
activities 931 4,015 1,104
----------------------- ---------------------- -----------------------
Investing Activities
Recognition of
intangible assets 7 (509) (778) (282)
Purchase of property,
plant and equipment 8 (57) (769) (480)
Interest received 5 169 35 4
Net cash used in / generated by
investing activities (397) (1,512) (758)
----------------------- ---------------------- -----------------------
Financing Activities
Proceeds from share
issue 13,14 26 14 9
Purchase of treasury
shares 17 (448) (1,956) (1,000)
Principal portion of
lease liability 19 (257) (301) (39)
----------------------- ---------------------- -----------------------
Net cash (used in)/ generated by
financing activities (679) (2,243) (1,030)
----------------------- ---------------------- -----------------------
Net increase/(decrease) in cash and
cash equivalents (145) 260 (684)
----------------------- ---------------------- -----------------------
Cash and cash equivalents at the
beginning of the period 14,171 14,046 14,046
Effect of exchange rate changes on
cash and cash equivalents (121) (135) (42)
Cash and cash equivalents at the
end of the period 13,905 14,171 13,320
======================= ====================== =======================
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS
1. Basis of preparation of half-year report
This condensed consolidated interim financial report for the
half-year reporting period beginning 1 January 2023 and ending 30
June 2023 ("interim period") has been prepared in accordance with
Accounting Standard IAS 34 Interim Financial Reporting.
The interim report does not include all the notes of the type
normally included in an annual financial report. Accordingly, this
report is to be read in conjunction with the annual report for the
year ended 31 December 2022 and any public announcements made by
Aquis Exchange PLC ("Aquis" or the "Company") during the interim
reporting period.
The accounting policies adopted are consistent with those of the
previous financial year and corresponding interim reporting
period.
2. Significant post balance sheet events
On 7 August 2023 Aquis Exchange PLC acquired a minority stake in
OptimX Markets Inc. (OptimX ), a US-based financial services
start-up focused on the block trading market (the "Investment").
The i nvestment is split into two tranches: Aquis will subscribe
US$0.75m out of a total first tranche of US$3.0m payable in cash,
followed by a second tranche in 12 months of a further US$0.75m out
of a total $3.0m payable in cash. It is expected that Jonathan
Clelland, COO of Aquis, will join the board of OptimX as a
Non-Executive Director in due course. OptimX is a new venture and
so has not yet generated any profits or losses.
3. Revenue
An analysis of the Group's revenue is as follows:
6 months ended 30/06/2023 Year ended 31/12/2022 6 months ended 30/06/2022
GBP'000 GBP'000 GBP'000
Exchange Fees 6,154 10,869 5,387
Licence Fees 801 5,035 662
Issuer Fees 547 1,023 424
Data Vendor Fees 1,840 3,003 1,376
9,342 19,930 7,849
-------------------------- ---------------------- --------------------------
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued )
4. Expected credit loss
The expected credit loss on licensing contract assets has been
calculated in accordance with IFRS 9:
GBP'000
As at 31/12/2021 1,478
Expected credit loss reversal for
the period (425)
------------
As at 30/06/2022 1,053
Expected credit loss charge for
the period 293
------------
As at 31/12/2022 1,346
Expected credit loss reversal for
the period (331)
------------
As at 30/06/2023 1,015
------------
The expected credit loss on trade receivables has been
calculated in accordance with IFRS 9:
GBP'000
As at 31/12/2021 46
Expected credit loss reversal for
the period 27
---------
As at 30/06/2022 73
Expected credit loss charge for
the period (14)
---------
As at 31/12/2022 59
Expected credit loss reversal for -
the period
---------
As at 30/06/2023 59
---------
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
5. Investment income
6 months ended 30/06/2023 Year ended 31/12/2022 6 months ended 30/06/2022
GBP'000 GBP'000 GBP'000
Interest income on bank
deposits 169 29 4
-------------------------- ---------------------- --------------------------
6. Earnings per share
6 months ended 30/06/2023 Year ended 31/12/2022 6 months ended 30/06/2022
Number of Shares ('000)
Weighted average number of
ordinary shares for basic
earnings per share 27,510 27,509 27,509
Weighted average number of
ordinary shares for diluted
earnings per share 28,796 28,425 28,431
Earnings (GBP'000)
Profit for the period from
continued operations 1,046 4,684 699
Basic and diluted earnings per
share (pence)
Basic earnings per ordinary share 3.8 17.0 2.5
Diluted earnings per ordinary
share 3.6 16.5 2.5
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
7. Intangible assets
Other Intangibles
Group Developed Trading Platforms
Goodwill
GBP'000 GBP'000 GBP'000
Cost
As at 31/12/2021 3,011 37 83
Additions 282 - -
------------------------------------ ------------------ -----------
As at 30/06/2022 3,293 37 83
Additions 324 172 -
------------------------------------ ------------------ -----------
As at 31/12/2022 3,617 209 83
Additions 468 41 -
As at 30/06/2023 4,085 250 83
------------------------------------ ------------------ -----------
Accumulated amortisation and impairment
As at 31/12/2021 2,286 8 -
Charge for the period 258 6 -
------------------------------------ ------------------ -----------
As at 30/06/2022 2,544 14 -
Charge for the period 228 8 -
------------------------------------ ------------------ -----------
As at 31/12/2022 2,772 22 -
Charge for the period 268 20 -
As at 30/06/2023 3,040 42 -
------------------------------------ ------------------ -----------
Carrying amount
As at 31/12/2021 725 29 83
As at 30/06/2022 749 23 83
As at 31/12/2022 845 187 83
As at 30/06/2023 1,045 208 83
------------------------------------ ------------------ -----------
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
8. Property, plant and equipment
Fixtures, fittings and Computer Equipment Right of Use Asset Total
equipment
GBP'000 GBP'000 GBP'000 GBP'000
Cost
As at 31/12/2021 324 2,389 4,239 6,952
Additions & disposals 168 312 - 480
As at 30/06/2022 492 2,701 4,239 7,432
Additions & disposals - 290 - 290
As at 31/12/2022 492 2,991 4,239 7,722
Additions & disposals - 44 13 57
As at 30/06/2023 492 3,035 4,252 7,779
----------------------------- ------------------- ------------------- --------
Accumulated depreciation and
impairment
As at 31/12/2021 230 2,075 501 2,806
Charge for the period 38 152 173 363
As at 30/06/2022 268 2,227 674 3,169
Charge for the period 27 146 224 397
As at 31/12/2022 295 2,373 898 3,566
Charge for the period 30 160 194 384
As at 30/06/2023 325 2,533 1092 3,950
----------------------------- ------------------- ------------------- --------
Carrying amount
As at 31/12/2021 94 314 3,738 4,146
As at 30/06/2022 224 474 3,565 4,263
As at 31/12/2022 197 618 3,341 4,156
As at 30/06/2023 167 502 3,160 3,829
----------------------------- ------------------- ------------------- --------
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
9. Trade and other receivables
Current
-------------------------------------------------------
As at 30/06/2023 As at 31/12/2022 As at 30/06/2022
GBP'000 GBP'000 GBP'000
Trade receivables net of impairment 4,042 3,421 2,096
Prepayments 810 636 683
Other receivables 129 78 7
4,981 4,135 2,786
----------------- ----------------- -----------------
Non-Current
-------------------------------------------------------
As at 30/06/2023 As at 31/12/2022 As at 30/06/2022
GBP'000 GBP'000 GBP'000
Trade receivables net of impairment 5,588 5,010 4,079
Other receivables 339 342 635
5,927 5,352 4,714
----------------- ----------------- -----------------
Trade receivables are stated net of any credit impairment
provision as set out previously in Note 3 in accordance with IFRS
9, as illustrated below:
As at 30/06/2023 As at 31/12/2022 As at 30/06/2022
GBP'000 GBP'000 GBP'000
Gross trade receivables 10,704 9,837 7,319
Expected credit losses on contract assets (1,015) (1,347) (1,055)
Provisions against trade receivables (59) (59) (73)
----------------- ----------------- -----------------
Trade receivables net of impairment 9,630 8,431 6,175
----------------- ----------------- -----------------
Impairment includes the expected credit loss on licencing
contract assets stated in Note 4.
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
10. Deferred tax asset
A deferred tax asset was initially recognised in the year ended
31 December 2020, due to the Group becoming profitable for the
first time. The Group is expected to continue to be profitable in
future years, with the value of the deferred tax asset to be
reassessed annually at year end.
As at 30/06/2023 As at 31/12/2022 As at 30/06/2022
GBP'000 GBP'000 GBP'000
----------------- ----------------- -----------------
Deferred tax asset 1,594 1,594 1,292
----------------- ----------------- -----------------
11. Income tax
The income tax charge/(credit) can be reconciled to the result
per the Statement of Comprehensive Income as follows:
6 months to 30/06/2023 Year ended 31/12/2022 6 months to 30/06/2022
GBP'000 GBP'000 GBP'000
Current tax
UK Corporation tax charge - - -
Overseas tax charges on foreign
operations 99 144 -
Total tax charge 99 144 -
----------------------- ---------------------- -----------------------
Deferred tax
Origination and reversal of - (229) -
timing differences
Effect of changes in tax rates - (72) -
Total deferred tax (credit) - (301) -
----------------------- ---------------------- -----------------------
6 months to 30/06/2023 Year ended 31/12/2022 6 months to 30/06/2022
GBP'000 GBP'000 GBP'000
Profit before tax 1,145 4,527 699
-------------------------------- ----------------------- ---------------------- -----------------------
Expected tax charge based on a
corporation tax charge of 19% 195 860 100
Expected tax charge based on
effective overseas rates of
25% 99 177 61
Fixed asset differences (182) (40) (111)
Expenses not deductible for tax
purposes 87 109 53
Other differences (7) (89) (46)
Remeasurement of deferred tax
for changes in tax rates (93) (72) (57)
Movement in deferred tax not - (1,069) -
recognised
Movement in deferred tax not - (33) -
recognised at overseas rates
Tax charge/(credit) for the
period 99 (157) (1,030)
----------------------- ---------------------- -----------------------
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
12. Trade and other payables
As at 30/06/2023 As at 31/12/2022 As at 30/06/2022
Trade payables 244 510 499
Accruals 1,035 1,509 1,076
Social security and
other taxation 663 221 755
Deferred revenue 1,959 1,358 1,604
Short term lease
liabilities 527 523 434
Overseas corporation
tax payable 23 144 -
Derivatives 40 - -
Other payables 4 3 85
----------------- ----------------- -----------------
4,495 4,268 4,453
----------------- ----------------- -----------------
In January 2023 forward contracts were taken by the Company
in order to economically hedge against foreign exchange
movements in contract asset balances denominated in US
Dollars (see note 9). These derivatives are remeasured
at each reporting sheet date with the movement recognised
in Profit and Loss. The year to date loss on these items
is GBP40k.
13. Called up share capital
As at 30/06/2023 As at 31/12/2022 As at 30/06/2022
GBP'000 GBP'000 GBP'000
Ordinary share capital
Issued and fully paid
27,149,559 Ordinary shares of 10p each 2,751 2,751 2,751
Issue of new shares following exercise of 3,999 EMI - - -
share options
Issue of new shares following exercise of 7,333 EMI 1 - -
share options
Ordinary share capital 2,752 2,751 2,751
----------------- ----------------- -----------------
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
14. Share premium account
As at 30/06/2023 As at 31/12/2022 As at 30/06/2022
GBP'000 GBP'000 GBP'000
Share premium
At beginning of year 11,785 11,771 11,771
Issue of new shares following exercise of 3,999 EMI
share options - 14 9
Issue of new shares following exercise of 7,333 EMI 25 - -
share options
Share premium 11,810 11,785 11,780
----------------- ----------------- -----------------
15. Other Reserves
GBP'000
As at 31/12/2021 1,118
Share-based payment expense for the 6-month
period ended 30/06/2022 742
As at 30/06/2022 1,860
Share-based payment expense for the 6-month
period ended 31/12/2022 (47)
As at 31/12/2022 1,813
Share-based payment expense for the 6-month
period ended 30/06/2023 507
As at 30/06/2023 2,320
--------
The reserves relating to share-based payments reflects the
estimated value of the approved employee share option schemes,
which include the EMI, CSOP, PPO and Restricted Share options. The
valuation of the options granted is estimated using a US binomial
or Black Scholes model. Also included in the share-based payment
reserve are the treasury shares purchased by the Trust under the
Share Incentive Plan.
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
16. Retained earnings
GBP'000
As at 31/12/2021 5,633
Profit for the 6-month period
ended 30/06/2022 699
As at 30/06/2022 6,332
Profit for the 6-month period
ended 31/12/2022 3,985
As at 31/12/2022 10,317
Profit for the 6-month period
ended 30/06/2023 1,046
As at 30/06/2023 11,363
17. Treasury shares
Treasury shares are purchased by the Trusts under the Employee
Share Plans. The Trusts are consolidated within the Group financial
statements and the value of the shares held at the balance sheet
date is shown below.
As at 30/06/2023 As at 31/12/2022 As at 30/06/2022
GBP'000 GBP'000 GBP'000
At beginning of period 3,350 1,527 1,527
Purchase of treasury shares 448 1,823 1,474
Treasury shares at close of period 3,798 3,350 3,001
----------------- ----------------- -----------------
18. Foreign currency translation reserve
The translation of the European subsidiary into the functional
currency of the group results in foreign exchange differences that
have been recognised in Other Comprehensive Income ('OCI') for the
group which have been accumulated in a separate component of equity
as illustrated below.
6 months ended 30/06/2023 Year ended 31/12/2022 6 months ended 30/06/2022
GBP'000 GBP'000 GBP'000
At the beginning of the
year/period 64 (159) (117)
Foreign exchange differences on
translation of foreign
operations recognised in OCI (101) 223 (42)
At the end of the year/period (37) 64 (159)
-------------------------- ---------------------- --------------------------
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
19. IFRS 16 Leases
The impact on the Group's assets and liabilities, and the related effects on profit and loss, of the Group's
leasing activities
(the Group as a lessee) are detailed below.
Right of Use Asset
Property
GBP'000
------------------------------------- ---------
Carrying amount at 1 January 2022 3,738
Depreciation for the period (173)
Carrying amount at 30 June 2022 3,565
Depreciation for the period (225)
Carrying amount at 31 December 2022 3,340
Remeasurement of lease 13
Depreciation for the period (194)
Carrying amount at 30 June 2023 3,159
------------------------------------- ---------
Rent deposit asset
Rent deposit asset
GBP'000
---------------------------------------------- -------------------
Carrying amount at 1 January 2022 616
Finance income on rent deposit asset for the
period 11
Carrying amount at 30 June 2022 627
Finance income on rent deposit asset for the
period 4
Recovery of rent deposit (274)
Carrying amount at 31 December 2022 357
Remeasurement of lease (12)
Finance income on rent deposit asset for the
period 5
Carrying amount at 30 June 2023 350
---------------------------------------------- -------------------
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
Lease liability
Lease liability
GBP'000
--------------------------------------------------- ----------------
Carrying amount at 1 January 2022 3,630
Finance expense on lease liability for the period 33
Lease payments made during the period (39)
Carrying amount at 30 June 2022 3,629
Finance expense on lease liability for the period 35
Lease payments made during the period (262)
Carrying amount at 31 December 2022 3,397
Finance expense on lease liability for the period 54
Lease payments made during the period (257)
Carrying amount at 30 June 2023 3,194
--------------------------------------------------- ----------------
Of which are:
Current 527
Non-current 2,667
3,194
--------------------------------------------------- ----------------
Net finance expense on leases
6 months ended Year ended 6 months ended
30/06/2023 31/12/2022 30/06/2022
GBP'000 GBP'000 GBP'000
--------------------- -------------------- --------------------- --------------------
Finance expense on
lease liability 54 68 33
Finance income on
rent deposit asset (5) (15) (11)
Net finance expense
relating to leases 49 53 22
--------------------- -------------------- --------------------- --------------------
The finance income and finance expense arising from the Group's leasing activities as a lessee have been shown
net where applicable
as is permitted by IAS 32 where criteria for offsetting have been met.
Amounts recognised in profit and loss
6 months ended Year ended 6 months ended
30/06/2023 31/12/2022 30/06/2022
GBP'000 GBP'000 GBP'000
--------------------- -------------------- --------------------- --------------------
Depreciation expense
on right-of-use
assets (194) (397) (173)
Finance expense on
lease liability (54) (68) (33)
Finance income on
rent deposit asset 5 15 11
Net impact of leases
on profit or loss (243) (450) (195)
--------------------- -------------------- --------------------- --------------------
The total cash outflow for leases amounted to GBP217k in
the 6 months to 30 June 2023.
AQUIS EXCHANGE PLC
NOTES TO THE FINANCIAL STATEMENTS (continued)
20. Cash generated from operations
6 months Year 6 months
ended ended ended
30/06/2023 31/12/2022 30/06/2022
GBP'000 GBP'000 GBP'000
Profit after tax 1,046 4,684 699
Adjustments for:
Income tax 99 144 -
Deferred tax - (301) -
Foreign exchange (gains)/losses (13) 116 -
Investment revenue (169) (29) (4)
Amortisation and impairment of
intangible assets 288 499 264
Depreciation of property, plant
and equipment 384 761 363
Equity settled share-based payment
expense 507 820 289
Other (gains)/losses (69) 58 (4)
Movement in working capital:
Increase in trade and other receivables (1,199) (1,594) (986)
Increase in trade and other payables 227 (1,196) 461
Cash generated by operations 1,101 3,962 1,082
------------ ------------ ------------
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END
IR SESFASEDSEDU
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September 21, 2023 02:00 ET (06:00 GMT)
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