Half-year report
DXS INTERNATIONAL PLC
(AQSE: DXSP)
HALF YEAR
RESULTS
DXS International plc ("DXS" or the "Company"),
the digital clinical decision support company, is pleased to
provide shareholders with its unaudited interim results for the
half year ending 31 October 2021.
Financial Highlights
- Revenue for the
six-month period has held well at £1,618,439 (2020:
£1,716,424).
- In line with
projections, profit before tax is £21,427 (2020: £150,556) and
profit after tax £137,352 (2020: £224,825).
Results overall are in line with projections for
the revised strategy to capitalise on opportunities resulting from
COVID including increased investment in order to scale solutions
aimed at managing significant backlogs in “healthcare business as
usual” and the increased clinician shortage crisis. DXS has been
investing for growth over the past six months and is expecting to
have a stronger second half to the business, as it traditionally
does and did in the financial year to 30 April 2021.
Operational Highlights
- CompleteCare
templates and toolkits well received in early pilots, providing
much needed solutions in managing healthcare backlogs in areas such
as medicines monitoring, cancer care, mental health and learning
disability.
- ExpertCare
hypertension pilots completed, confirming that only 50% of the
pilot patients are being managed in compliance with “Gold Standard”
treatment guidelines and that by using ExpertCare this immediately
improved to 75%.
- Development of our
new cloud based DXS Point of Care solution is progressing
well.
Reorganisation of the NHS
Management Structure
The current 106 Clinical Commissioning Groups
responsible for the planning and commissioning of healthcare in
their respective areas, and responsible for approximately 60% of
the NHS budget, are being replaced by 42 Integrated Care Systems
(ICSs). These ICSs are intended to bring about major changes in how
health and care services are planned, paid for and delivered, and
are a key part of the future direction for the NHS as set out in
the NHS Long Term Plan. Another major change for primary care has
been the formation of 1,250 Primary Care Networks (PCNs) each
representing small groupings of GP practices with registered
patients numbering between 30,000 -50,000.
One major opportunity this represents for DXS is
that these PCN’s are mandated to utilise clinical pharmacists, a
70% NHS funded reimbursable role, to conduct structured medicine
reviews on behalf of the GP practices. Our new AI medicines
management solution will provide an invaluable tool empowering
these pharmacists to manage complex reviews with minimal GP input
and help the NHS manage COVID backlogs and GP shortages.
Refined
Strategy
Against this backdrop, we have refined our
strategy by accelerating our planned development of adding
additional long-term conditions, such as diabetes, to our new
solutions, underpinned by an aggressive sales and marketing
campaign. Due to this increased investment in growth, we expect
profitability to decline in the short to medium term resulting in
an aggressive upward revenue and profitability curve within 18
months.
David Immelman, Chief Executive of DXS said: “We
remain resolute in our conviction that our foresight and efforts
into developing a world beating expert long term condition
management solutions is 100% aligned with the global strategy of
digital transformation in healthcare. This was again evidenced by
the recent announcement of the NHS commitment to digital
transformation to merge NHS Digital and NHSX with NHS England and
Improvement.
We expect our suite of Expert AI Solutions to
have a major positive impact in the improvement of healthcare
outcomes.”
INTERIM RESULTS to
31 OCTOBER
2021
CONSOLIDATED INCOME
STATEMENT
for the six-month period ended 31 October 2021
|
Unaudited Group
6 Months ended
31 Oct
2021 |
|
Unaudited6 Months
ended31 Oct
2020 |
|
AuditedYear
to30 April
2021 |
|
Continuing Operations |
|
Continuing Operations |
|
Continuing Operations |
|
|
£ |
|
|
£ |
|
|
£ |
Turnover |
1,618,439 |
|
1,716,424 |
|
3,605,766 |
Cost of
Sales |
(191,952) |
|
(177,367) |
|
(419,757) |
|
_________ |
|
_________ |
|
_________ |
Gross Profit |
1,426,487 |
|
1,539,057 |
|
3,186,009 |
Administration
Costs |
(1,111,965) |
|
(1,064,034) |
|
(1,917,310) |
Depreciation and
Amortisation |
(274,093) |
|
(302,623) |
|
(980,683) |
|
_________ |
|
_________ |
|
_________ |
Operating
Profit |
40,429 |
|
172,398 |
|
288,016 |
Sundry
Income |
2,152 |
|
- |
|
9,539 |
|
_________ |
|
_________ |
|
_________ |
|
42,581 |
|
172,398 |
|
297,555 |
Interest
payable and similar expenses |
(21,154) |
|
(21,842) |
|
(43,882 |
|
_________ |
|
_________ |
|
_________ |
Profit on
ordinary
activities before taxation |
21,427 |
|
150,556 |
|
253,673 |
Tax on profit
on ordinary activities |
115,925 |
|
74,269 |
|
243,240 |
|
_________ |
|
_________ |
|
_________ |
Profit for the period |
137,352 |
|
224,825 |
|
496,913 |
|
========= |
|
========= |
|
========= |
Profit per
share |
|
|
|
|
|
|
0.3p |
|
0.6p |
|
1p |
|
0.3p |
|
0.5p |
|
1p |
|
========= |
|
========= |
|
========= |
STATEMENT of FINANCIAL POSITION
as at 31 October 2021
|
UnauditedGroup
at31 Oct
2021 |
UnauditedGroup
at31 Oct
2020 |
AuditedGroup
at30 April
2021 |
|
|
£ |
|
£ |
|
£ |
Fixed
Assets |
|
|
|
Intangible
Assets |
4,921,943 |
4,273,801 |
4,557,969 |
Tangible
Assets |
961 |
1,680 |
1,333 |
|
_________ |
_________ |
_________ |
|
4,922,904 |
4,275,481 |
4,559,302 |
|
_________ |
_________ |
_________ |
Current
assets |
|
|
|
Debtors Amounts
falling due within one year |
320,784 |
283,515 |
850,258 |
Cash at bank and
in hand |
543,281 |
1,207,305 |
702,318 |
|
_________ |
_________ |
_________ |
|
864,065 |
1,490,820 |
1,642,576 |
Creditors: amounts
falling due within one year |
(689,586) |
(845,059) |
(951,673) |
|
_________ |
_________ |
_________ |
Net current assets
/ (liabilities) |
174,479 |
645,761 |
690,903 |
|
_________ |
_________ |
_________ |
|
|
|
|
Total assets less
current liabilities |
5,097,383 |
4,921,242 |
5,250,205 |
|
|
|
|
Creditors: amounts
falling due after more than one year |
(364,681) |
(563,580) |
(449,125) |
Deferred
income |
(447,958) |
(482,358) |
(653,688) |
|
_________ |
_________ |
_________ |
|
4,284,744 |
3,875,304 |
4,147,392 |
|
========= |
========= |
========= |
Capital and
reserves |
|
|
|
Called up share
capital |
159,246 |
159,246 |
159,246 |
Share Premium |
2,676,321 |
2,676,321 |
2,676,321 |
Provision for
costs of share option awards |
173,808 |
173,808 |
173,808 |
Retained
earnings |
1,275,369 |
865,929 |
1,138,017 |
|
_________ |
_________ |
_________ |
Shareholders’
Funds |
4,284,744 |
3,875,304 |
4,147,392 |
|
========= |
========= |
========= |
|
|
|
|
STATEMENT of CASH FLOWS
Six months ended 31 October 2021
|
UnauditedGroupSix months
ended 31 Oct
2021 |
UnauditedGroupSix months
ended 31 Oct
2020 |
Audited Group year ended
30 April
2021 |
|
|
£ |
|
£ |
|
£ |
|
|
|
|
Cash flow from
operating activities |
242,179 |
435,895 |
1,088,409 |
Interest paid |
(21,154) |
(21,842) |
(43,882) |
Sundry Income |
2,152 |
- |
9,539 |
R&D tax
credit |
249,925 |
186,269 |
186,240 |
|
_________ |
_________ |
_________ |
Cash flow from
operating activities |
473,102 |
600,322 |
1,240,306 |
|
_________ |
_________ |
_________ |
|
|
|
|
Cash flow from
investing activities |
|
|
|
Payments to
acquire intangible fixed assets |
(637,695) |
(568,259) |
(1,529,762) |
Payments to
acquire tangible fixed assets |
- |
(1,329) |
(1,707) |
|
_________ |
_________ |
_________ |
|
(637,695) |
(569,588) |
(1.531,469) |
|
_________ |
_________ |
_________ |
|
|
|
|
Cash flow from
investing activities |
|
|
|
Repayment of long
term loans |
(84,444) |
(24,074) |
(117,164) |
Advance of long
term loans |
- |
190,000 |
190,000 |
|
_________ |
_________ |
_________ |
|
84,444 |
165,926 |
72,836 |
|
_________ |
_________ |
_________ |
|
|
|
|
Net increase /
(decrease) in cash and cash equivalents |
(249,037) |
196,660 |
(218,327) |
Cash and Cash
equivalents at 30 April 2021 |
792,318 |
1,010,645 |
1,010,645 |
|
_________ |
_________ |
_________ |
|
|
|
|
Cash and Cash
equivalents at 3 October 2020 |
543,281 |
1,207,305 |
792,318 |
|
========= |
========= |
========= |
Cash and Cash
equivalents consists of: |
|
|
|
Cash at bank and
in hand |
543,281 |
1,207,305 |
792,318 |
|
========= |
========= |
========= |
Net Debt Reconciliation
|
Current Debt |
Non Current Debt |
Cash |
Total |
|
£ |
£ |
£ |
£ |
|
|
|
|
|
At 30 April
2019 |
(420,131) |
(376,289) |
1,010,645 |
(214,225) |
Cash flow |
212.992 |
(72,836) |
(218,327) |
(78,171) |
|
_________ |
_________ |
_________ |
_________ |
|
|
|
|
|
At 30 April
2020 |
(207,139) |
(449,125) |
792,318 |
136,054 |
Cash flow |
64,771 |
84,444 |
(249,037) |
(99,882) |
|
_________ |
_________ |
_________ |
_________ |
At 31 October
2021 |
(142,368) |
(364,681) |
543,281 |
36,232 |
|
========= |
========= |
========= |
========= |
The above figures have not been reviewed by the company's
auditors Crowe U.K. LLP.
The Directors of DXS International plc accept
responsibility for this announcement
Contacts:
David
Immelman (Chief
Executive)DXS International plc |
01252 719800david@dxs-systems.com |
https://www.dxs-systems.co.uk |
|
Corporate
Advisor |
|
City &
Merchant David Papworth |
020 7101 7676 |
Corporate
Broker |
|
Hybridan
LLPClaire Louise Noyce |
020 3764 2341 |
Notes to Editors
About DXS:
DXS International presents up to date treatment
guidelines and recommendations, from Clinical Commissioning Groups
and other trusted NHS sources, to doctors, nurses and pharmacists
in their workflow and during the patient consultation. This
effective clinical decision support ultimately translates to
improved healthcare outcomes delivered more cost effectively and
which should significantly contribute towards the NHS achieving its
projected efficiency savings.
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