TIDMAD4
RNS Number : 7329D
adept4 plc
28 June 2019
Adept4 plc
("Adept4", the "Group" or the "Company")
Interim Results for the six months ended 31 March 2019
Adept4 plc (AIM: AD4), the AIM quoted provider of IT as a
Service, today announces its unaudited interim results for the six
months ended 31 March 2019.
Summary
-- Revenue for the period of GBP4.2 million (H1 2018: GBP5.4 million);
-- Trading Group EBITDA(1) of GBP15,000 (H1 2018: GBP0.5 million);
-- Loss for the period of GBP1.1 million (H1 2018: GBP0.8 million);
-- Net debt(2) at 31 March 2019 of GBP3.4 million;
-- Significant reduction in costs at end of period following
decision to focus more on existing customer base with less emphasis
on new business generation;
-- Return to modest levels of monthly Trading Group EBITDA profitability;
-- Strategic review nearing conclusion.
Simon Duckworth, Non-Executive Chairman of Adept4,
commented:
"Having returned the business to modest levels of monthly
Trading Group EBITDA profitability with a reduced cash burn after
plc and debt service costs, the Board has more recently been able
to focus on taking positive steps to return the business to growth.
Good progress has been made in this regard and we look forward to
updating shareholders on our future plans in due course."
For further information please contact:
Adept4 plc
Simon Duckworth, Non-Executive Chairman 01925 398255
N+1 Singer (Nominated Adviser and Broker)
Jen Boorer
Shaun Dobson 0207 496 3000
MXC Capital Markets LLP
Charlotte Stranner 0207 965 8149
This announcement contains inside information.
(1) earnings before net finance costs, tax, depreciation,
amortisation, plc costs, separately identifiable items and
share-based
payments
(2) Net debt at 31 March 2019 comprises cash balances of
GBP0.8m, less the amortised cost of BGF loan notes of GBP4.2m.
CHAIRMAN'S STATEMENT
Strategic overview
In February 2019 we reported on the Group's financial results
for the year ended 30 September 2018 ("FY18"). Within those results
we noted that FY18 had been extremely challenging for the business,
with the investment made in the new sales team not yet delivering
the results we had hoped for and with progress further hindered by
the general level of caution which is evident in our economy.
We further reported that the continued delays in new sales in
the current financial year ("FY19") meant that the Group was
experiencing ongoing monthly Trading Group EBITDA and cash losses.
As a consequence, we announced that we had taken the decision to
focus on our existing customer base with less emphasis on new
business acquisition, which would lead to reduced revenue and gross
profit, but which requires a significantly lower operating cost
base, with the intention of returning the Group to profitability
and cash generation. This action was designed to protect the cash
reserves of the Group whilst the Board considered the strategic
options open to the Company. As at February 2019, further cost
savings had been identified which were in the process of being
implemented. I can now provide an update on these initiatives.
The cost reduction programme was completed at the end of March
2019 and has reduced overheads by circa GBP75,000 per month. Since
the changes were implemented, we have seen a pleasing increase in
the levels of new business won within our existing customer base,
demonstrating the strength of those relationships and the
opportunities therein. The recent performance of the business has,
however, been impacted by the cancellation of a contract by a major
customer, as announced on 8 April 2019. The Company disputes the
contract termination is valid and is currently seeking legal
redress from the customer. The combined effect of these changes
means that the Group has returned to modest levels of monthly
Trading Group EBITDA profit generation and the cash burn (after plc
costs and debt service costs) has reduced.
In seeking to recover value for shareholders the Board has been
considering the strategic options open to the Company and working
with its professional advisers, its debt provider and its major
shareholders to find the best way forward for all stakeholders.
This review is now nearing its conclusion and the Board will
announce the outcome of this as soon as practicable.
Trading and results
Revenue in the six months to 31 March 2019 ("H119") was GBP4.2
million, compared to GBP5.4 million in the six months to 31 March
2018 ("H118"). This reduction reflected both the delays experienced
in generating new sales and the conclusion of several
transformation projects which generated significant professional
services and product revenues in H118, together with a number of
planned and expected customer contract reductions.
In terms of our recurring revenues, as previously reported, some
of our larger customers undertook digital transformation projects
in FY18, to move them away from on-premise solutions to a more
dynamic and flexible cloud-based "Pay as you Use" IT solution.
After their initial investment in one-off costs, in FY19 these
customers started to enjoy the benefits of the monthly savings such
solutions provide. H119 also saw certain customers' fixed term IT
support contracts come to a natural end at the conclusion of the
related projects. As a result, recurring revenues in H119 were
GBP3.0 million (H118: GBP3.6 million), representing over 70% of
total revenue.
Product sales in the period were GBP0.8 million (H118: GBP1.1
million) with professional services revenue of GBP0.4 million
(H118: GBP0.7 million).
The resultant total gross profit was GBP2.1 million (H118:
GBP3.1 million). The reduction in gross profit margins from 57% in
H118 to 51% in H119 is predominantly due to the migration of
certain services from our infrastructure to that of a third party
(such as Microsoft), in line with our asset-light strategy. Whilst
initially resulting in some margin reduction, this strategy reduces
risk and cost of ownership for us and allows us to provide
customers with best-of-breed solutions with the ability to sell a
wider range of services to the customer. This transition also means
that we need fewer staff to support the in-house solutions, which
has enabled us to reduce our overhead base without affecting
customer service levels.
In the six months to March 2019, administrative expenses before
plc costs reduced to GBP2.1 million, a fall of GBP0.5 million
compared to H118. This resulted in a Trading Group EBITDA for the
period of GBP15,000 (H118: GBP0.5 million). As detailed above, the
Group's forward operating cost base has been reduced by circa
GBP75,000 per month as a result of the restructure which concluded
in March 2019. The restructure resulted in one-off costs in the
half-year of GBP0.1 million, shown in the income statement as
separately identifiable costs.
After accounting for plc costs and non-cash items such as
amortisation, depreciation and share-based payments charges, the
operating loss for the period was GBP0.9 million (H118: loss of
GBP0.5 million). After cash interest costs of GBP0.2 million and a
notional non-cash interest charge of GBP0.1 million in respect of
the loan from BGF, together with a deferred tax credit of GBP0.1
million, the loss after tax for H119 was GBP1.1 million (H118:
GBP0.8 million).
Cash used in operating activities in the period was GBP0.3
million (H118: GBP0.5 million). This figure includes the net impact
of the GBP0.6 million which was received from the vendors of Adept4
Managed IT Limited (being the cash element of Group's successful
GBP1.6 million warranty claim settlement in 2018), and the payment
of creditors in respect of legal fees relating to the warranty
claim, together with part payment of the GBP0.4 million settlement
of the Microsoft historic licencing review reported in December
2018 and provided for as a liability in the FY18 financial
statements. After interest payments of GBP0.2 million and a GBP0.1
million final payment in relation to the disposal of Pinnacle CDT
Limited, the cash balance at 31 March 2019 was GBP0.8 million (30
September 2018: GBP1.4 million).
Net debt at 31 March 2019 was GBP3.4 million (30 September 2018:
GBP2.7 million). This comprises the cash balance of GBP0.8 million
less the amortised cost of loan notes held by BGF of GBP4.2
million.
Outlook
Having returned the business to a position of modest monthly
Trading Group EBITDA profitability with a reduced cash burn after
plc and debt service costs, the Board has more recently been able
to focus on taking positive steps to return the business to growth.
Good progress has been made in this regard and we look forward to
updating shareholders on our future plans in due course.
Simon Duckworth
Non-Executive Chairman
28 June 2019
CONSOLIDATED INCOME STATEMENT
for the six-month period ended 31 March 2019
6 months 6 months Year to
to 31 March to 31 March 30 September
2019 2018 2018
Note GBP'000 GBP'000 GBP'000
----------------------------------- ----- ------------- ------------- --------------
Continuing operations
Revenue 3 4,181 5,392 10,185
Cost of sales (2,040) (2,323) (4,480)
----------------------------------- ----- ------------- ------------- --------------
Gross profit 3 2,141 3,069 5,705
----------------------------------- ----- ------------- ------------- --------------
Administrative expenses (2,318) (2,883) (5,598)
Amortisation of intangible assets 7 (454) (470) (907)
Depreciation (58) (39) (136)
Separately identifiable costs 4 (143) (137) (2,390)
Share-based payments (81) (60) (48)
----------------------------------- ----- ------------- ------------- --------------
Operating loss (913) (520) (3,374)
----------------------------------- ----- ------------- ------------- --------------
Interest receivable 2 1 7
Interest payable (303) (330) (609)
----------------------------------- ----- ------------- ------------- --------------
Net finance expense (301) (329) (602)
----------------------------------- ----- ------------- ------------- --------------
Loss before taxation (1,214) (849) (3,976)
----------------------------------- ----- ------------- ------------- --------------
Taxation 5 84 84 169
----------------------------------- ----- ------------- ------------- --------------
Loss and total comprehensive loss for
the period attributable to owners of
the parent (1,130) (765) (3,807)
------------------------------------------ ------------- ------------- --------------
Loss per share
Basic and fully diluted 6 (0.50)p (0.34)p (1.68)p
----------------------------------- ----- ------------- ------------- --------------
Non-statutory measure : Trading
Group EBITDA(1)
Operating loss (913) (520) (3,374)
Plc costs 192 267 482
Amortisation of intangible assets 7 454 470 907
Depreciation 58 39 136
Separately identifiable costs 4 143 137 2,390
Share-based payments 81 60 48
----------------------------------- ----- ------------- ------------- --------------
Trading Group EBITDA(1) 15 453 589
----------------------------------- ----- ------------- ------------- --------------
(1) earnings before net finance costs, tax, depreciation,
amortisation, plc costs, separately identifiable items and
share-based
payments
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 31 March 2019
At 30
At 31 At 31 March September
March
2019 2018 2018
Note GBP'000 GBP'000 GBP'000
--------------------------------- ----- --------- ------------ ----------
Non-current assets
Intangible assets 7 7,849 11,369 8,282
Property, plant and equipment 103 214 146
Total non-current assets 7,952 11,583 8,428
--------------------------------- ----- --------- ------------ ----------
Current assets
Inventories 86 102 26
Trade and other receivables 8 2,443 2,822 2,900
Cash and cash equivalents 841 2,037 1,427
--------------------------------- ----- ------------ ----------
Total current assets 3,370 4,961 4,353
--------------------------------- ----- --------- ------------ ----------
Total assets 11,322 16,544 12,781
--------------------------------- ----- --------- ------------ ----------
Liabilities
Short-term borrowings 9 (32) (1,035) (32)
Trade and other payables (1,421) (1,137) (1,102)
Other taxes and social security
costs (373) (554) (377)
Accruals and deferred income (1,208) (1,426) (1,937)
--------------------------------- ----- --------- ------------ ----------
Total current liabilities (3,034) (4,152) (3,448)
--------------------------------- ----- --------- ------------ ----------
Non-current liabilities
Long-term borrowings 9 (4,205) (4,038) (4,117)
Deferred tax liability 10 (1,164) (1,332) (1,248)
--------------------------------- ----- --------- ------------ ----------
(5,369) (5,370) (5,365)
--------------------------------- ----- --------- ------------ ----------
Total liabilities (8,403) (9,522) (8,813)
--------------------------------- ----- --------- ------------ ----------
Net assets 2,919 7,022 3,968
--------------------------------- ----- --------- ------------ ----------
Equity
Share capital 2,271 2,271 2,271
Share premium account 11,337 11,337 11,337
Capital redemption reserve 6,489 6,489 6,489
Merger reserve 1,997 1,997 1,997
Other reserve 1,730 1,661 1,649
Retained earnings (20,905) (16,733) (19,775)
--------------------------------- ----- --------- ------------ ----------
Total equity 2,919 7,022 3,968
--------------------------------- ----- --------- ------------ ----------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the six-month period ended 31 March 2019
Capital
Share Share redemption Merger Other Retained
capital premium reserve reserve reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------- --------------------------- --------------------------- --------------------------- --------------------------- --------------------------- --------- --------
At 1 October
2017 2,271 11,337 6,489 1,997 1,601 (15,968) 7,727
--------------- --------------------------- --------------------------- --------------------------- --------------------------- --------------------------- --------- --------
Loss and total
comprehensive
loss for the
period - - - - - (765) (765)
--------------- --------------------------- --------------------------- --------------------------- --------------------------- --------------------------- --------- --------
Transactions
with owners
Share-based
payments - - - - 60 - 60
Total
transactions
with owners - - - - 60 - 60
--------------- --------------------------- --------------------------- --------------------------- --------------------------- --------------------------- --------- --------
Total
movements - - - - 60 (765) (705)
--------------- --------------------------- --------------------------- --------------------------- --------------------------- --------------------------- --------- --------
Equity at 31
March
2018 2,271 11,337 6,489 1,997 1,661 (16,733) 7,022
--------------- --------------------------- --------------------------- --------------------------- --------------------------- --------------------------- --------- --------
Capital
Share Share redemption Merger Other Retained
capital premium reserve reserve reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------- --------- --------- ------------ --------- --------- ---------- ---------
At 1 April 2018 2,271 11,337 6,489 1,997 1,661 (16,733) 7,022
Loss and total
comprehensive
loss for the
period - - - - - (3,042) (3,042)
------------------- --------- --------- ------------ --------- --------- ---------- ---------
Transactions with
owners
Share-based
payments - - - - (12) - (12)
Total transactions
with owners - - - - (12) - (12)
------------------- --------- --------- ------------ --------- --------- ---------- ---------
Total movements - - - - (12) (3,042) (3,054)
------------------- --------- --------- ------------ --------- --------- ---------- ---------
Equity at 30
September
2018 2,271 11,337 6,489 1,997 1,649 (19,775) 3,968
------------------- --------- --------- ------------ --------- --------- ---------- ---------
Capital
Share Share redemption Merger Other Retained
capital premium reserve reserve reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------ --------- --------- ------------ --------- --------- ---------- -----------
At 1 October 2018 2,271 11,337 6,489 1,997 1,649 (19,775) 3,968
Loss and total
comprehensive
loss for the
period - - - - - (1,130) (1,130)
------------------ --------- --------- ------------ --------- --------- ---------- -----------
Transactions with
owners
Share-based
payments - - - - 81 - 81
Total
transactions
with owners - - - - 81 - 81
------------------ --------- --------- ------------ --------- --------- ---------- -----------
Total movements - - - - 81 (1,130) (1,049)
------------------ --------- --------- ------------ --------- --------- ---------- -----------
Equity at 31
March
2019 2,271 11,337 6,489 1,997 1,730 (20,905) 2,919
------------------ --------- --------- ------------ --------- --------- ---------- -----------
CONSOLIDATED STATEMENT OF CASH FLOWS
for the six-month period ended 31 March 2019
6 months 6 months Year to
to 31 to 31 30 September
March March 2018
2019 2018
GBP'000 GBP'000 GBP'000
------------------------------------------- --------- --------- --------------
Cash flows from operating activities
Loss before taxation (1,214) (849) (3,976)
Adjustments for:
Depreciation 58 39 136
Amortisation 454 470 907
Share-based payments 81 60 48
Net finance expense 301 329 602
Settlement of Warranty Claim - - (1,578)
Impairment of goodwill - - 2,644
Decrease/(increase) in trade and other
receivables 457 (473) 73
(Increase)/Decrease in inventories (60) (35) 40
(Decrease)/increase in trade payables,
accruals and deferred income (334) (55) 195
------------------------------------------- --------- --------- --------------
Net cash used in operating activities (257) (514) (909)
------------------------------------------- --------- --------- --------------
Cash flows from investing activities
Purchase of property, plant and equipment (15) (75) (70)
Payment of deferred consideration - - (8)
Interest received 2 1 7
------------------------------------------- --------- --------- --------------
Net cash used in investing activities (13) (74) (71)
------------------------------------------- --------- --------- --------------
Cash flows from financing activities
Finance lease income received - 56 56
Payment of finance lease liabilities (12) (18) (44)
Interest paid (204) (218) (410)
Net cash used in financing activities (216) (180) (398)
------------------------------------------- --------- --------- --------------
Cash flows from discontinued operations
Settlement of dispute regarding Pinnacle
CDT Limited (100) (100) (100)
------------------------------------------- --------- --------- --------------
Net cash used in discontinued operations (100) (100) (100)
------------------------------------------- --------- --------- --------------
Net decrease in cash (586) (868) (1,478)
Cash at bank and in hand at beginning
of period 1,427 2,905 2,905
------------------------------------------- --------- --------- --------------
Cash at bank and in hand at end of
period 841 2,037 1,427
------------------------------------------- --------- --------- --------------
Comprising:
Cash at bank and in hand 841 2,037 1,427
------------------------------------------- --------- --------- --------------
NOTES TO THE FINANCIAL INFORMATION
for the six-month period ended 31 March 2019
1. General Information
Adept4 plc is a company incorporated in the United Kingdom under
the Companies Act 2006. The principal activity of the group is the
provision of IT as a Service ("ITaaS") to small and medium sized
businesses in the United Kingdom. The interim financial statements
are presented in pounds sterling because that is the currency of
the primary economic environment in which each of the Group's
subsidiaries operates.
The address of its registered office is 5 Fleet Place, London,
EC4M 7RD and its principal places of business are Leeds and
Warrington. The company is quoted on AIM, the market of that name
operated by the London Stock Exchange, under ticker symbol
AD4.L
These interim financial statements contain inside
information.
2. Basis of preparation
The annual financial statements of the Group are prepared in
accordance with applicable International Financial Reporting
Standards (IFRSs) as adopted by the EU and in accordance with the
Companies Act 2006. The interim financial information in this
report has been prepared using accounting standards consistent with
IFRS as adopted by the European Union. IFRS is subject to amendment
and interpretation by the International Accounting Standards Board
(IASB) and the IFRS Interpretations Committee and there is an
ongoing process of review and endorsement by the European
Commission. The financial information has been prepared on the
basis of IFRS that the Directors expect to be adopted by the
European Union and applicable at 30 September 2019.
Financial information contained in this document does not
constitute statutory accounts within the meaning of section of 434
of the Companies Act 2006 ("the Act"). The statutory accounts for
the year ended 30 September 2018 have been filed with the Registrar
of Companies. The report of the auditors on those statutory
accounts was unqualified, did not draw attention to any matters by
way of emphasis and did not contain a statement under section
498(2) or (3) of the Act. The financial information for the six
months ended 31 March 2019 and 31 March 2018 is unaudited.
The accounting standards applied by the Group in these interim
financial statements are the same as those applied by the Group in
the consolidated financial statements for the year ended 30
September 2018 with the exception of two new accounting standards
introduced in the six-month period to 31 March 2019, as
follows:
-- IFRS 15 Revenue from Contracts with Customers (effective 1 January 2018);
-- IFRS 9 Financial Instruments (effective 1 January 2018); and
Using the modified retrospective method, we assessed the impact
of IFRS 9 and IFRS 15 and confirm that no material changes were
required to the Group's financial results.
Under IFRS 15 there is a broader definition of what is
capitalisable as cost to obtain a contract. We have matched the
amortisation of capitalised costs to obtain a contract to the
revenue recognised but have used the practical expedient of IFRS 15
not to capitalise costs that relate to revenue that is recognised
in the income statement within twelve months.
As a practical expedient and as allowed under the standard, we
have applied the five-step approach under IFRS 15 to portfolios of
contracts which have similar characteristics and these have not
materially impacted the Group's financial results for the interim
period to 31 March 2019.
The adoption of IFRS 9 does not have a material impact on the
results of the Group.
After reviewing budgets, forecasts and cash projections for the
next twelve months and beyond, the Directors believe that the Group
has adequate resources to continue operations for the foreseeable
future and for this reason they have adopted a going concern basis
in preparing the interim financial statements. The interim
financial statements were approved by the Board of Directors on 27
June 2019.
3. Segment Reporting
The Chief Operating Decision Maker ("CODM") has been identified
as the director of the Company and its subsidiaries, who review the
Group's internal reporting in order to assess performance and to
allocate resources.
The CODM assesses profit performance principally through
adjusted profit measures consistent with those disclosed in the
Annual Report and Accounts. The Board believes that the Group
comprises a single reporting segment, being the provision of IT
managed services to customers. Whilst the CODM reviews the revenue
streams and related gross profits of three categories separately
(Recurring Services, Product and Professional Services), the
operating costs and operating asset base used to derive these
revenue streams are the same for all three categories and are
presented as such in the Group's internal reporting. Accordingly,
the segmental analysis below is therefore shown at a revenue and
gross profit level in line with the CODM's internal assessment
based on the following reportable operating segments:
-- Recurring Services This segment comprises the provision of
continuing IT services which have
an ongoing billing and support element.
-- Product This segment comprises the resale of solutions
(hardware and software)
from leading technology vendors.
-- Professional Services This segment comprises the provision of
highly skilled resource to consult,
design, install, configure and integrate IT technologies.
All revenues are derived from customers within the UK and no
customer accounts for more than 10% of external revenues.
Inter-segment transactions are accounted for using an arm's length
commercial basis.
The operating segments for the six months to 31 March 2018 have
been restated to reflect the definitions used in the Annual Report
and Accounts for the year ended 30 September 2018, in particular
the Professional Services operating segment, which now includes all
separable Professional Services revenues associated with Product
and Recurring Services revenues, which have been unbundled to
measure the contribution of our skilled technical resources. This
analysis is consistent with that used internally by the CODM and,
in the opinion of the Board, better reflects the nature of the
revenue.
3.1 Analysis of revenue 6 months 6 months Year to
to to
31 March 31 March 30 September
2019 2018 2018
GBP'000 GBP'000 GBP'000
------------------------------ --------- --------- -------------
By operating segment
Recurring services 3,022 3,551 7,100
Product 793 1,124 1,987
Professional services 366 717 1,098
------------------------------- --------- --------- -------------
Total revenue 4,181 5,392 10,185
------------------------------- --------- --------- -------------
3.2 Analysis of gross profit 6 months 6 months Year to
to to
31 March 31 March 30 September
2019 2018 2018
GBP'000 GBP'000 GBP'000
------------------------------ --------- --------- -------------
By operating segment
Recurring services 1,667 2,128 4,231
Product 167 256 439
Professional services 307 685 1,035
---------
Total gross profit 2,141 3,069 5,705
------------------------------- --------- --------- -------------
4. Separately identifiable costs and income
During the period, the Group incurred the following separately
identifiable costs and income which are material by their size or
incidence:
6 months 6 months Year to
to to 30 September
31 March 31 March 2018
2019 2018 GBP'000
GBP'000 GBP'000
----------------------------------- ---------- ---------- --------------
Settlement of warranty claim - - 1,578
Costs in relation to the warranty
claim and other M&A activities - - (481)
Settlement of historic Microsoft
licence review - - (376)
Impairment of goodwill - - (2,644)
Costs in relation to disposal of
Pinnacle CDT Limited - (90) (196)
Integration and restructure costs (143) (47) (271)
----------------------------------- ---------- ---------- --------------
Separately identifiable costs (143) (137) (2,390)
----------------------------------- ---------- ---------- --------------
5. Taxation
6 months to 6 months Year to
to
31 March 31 March 30 September
2019 2018 2018
GBP'000 GBP'000 GBP'000
------------------------------------ ------------ --------- -------------
Current tax
UK corporation tax for the period - - -
on continuing operations
Deferred tax credit
Deferred tax credit on intangible
assets from continuing operations 84 84 169
Total taxation credit for the
period 84 84 169
------------------------------------ ------------ --------- -------------
6. Loss per share
6 months 6 months Year to
to to
6. Loss per share
31 March 31 March 30 September
2019 2018 2018
p/share p/share p/share
-------------------------------------- ------------ ------------ -------------
Basic and fully diluted - continuing
operations (0.50) (0.34) (1.68)
-------------------------------------- ------------ ------------ -------------
GBP000 GBP000 GBP000
-------------------------------------- ------------ ------------ -------------
Loss on continuing operations (1,130) (765) (3,807)
-------------------------------------- ------------ ------------ -------------
Weighted average number of shares
in issue:
Basic and fully diluted 227,065,100 227,065,100 227,065,100
-------------------------------------- ------------ ------------ -------------
The weighted average number of ordinary shares for the purpose
of calculating the basic and diluted measures is the same. This is
because the outstanding share incentives would have the effect of
reducing the loss per ordinary share and therefore would be
anti-dilutive under the terms of IAS 33.
7. Intangible assets IT, billing
and
website Customer
Goodwill systems Brand lists Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------- -------------- --------------- -------- --------- --------
Cost
113
At 1 October 2017 4,447 - 1,157 7,580 13,297
Additions - 35 - - 35
At 31 March 2018 4,447 148 1,157 7,580 13,332
Disposals - (6) - - (6)
----------------------- -------------- --------------- -------- --------- --------
At 30 September 2018 4,447 142 1,157 7,580 13,326
Additions - 21 - - 21
At 31 March 2019 4,447 163 1,157 7,580 13,347
----------------------- -------------- --------------- -------- --------- --------
Amortisation
At 1 October 2017 (200) (7) (150) (1,136) (1,493)
Charge for the period - (10) (60) (400) (470)
At 31 March 2018 (200) (17) (210) (1,536) (1,963)
Impairment charge (2,644) - - - (2,644)
Charge for the period - (10) (55) (372) (437)
At 30 September 2018 (2,844) (27) (265) (1,908) (5,044)
Charge for the period - (15) (57) (382) (454)
At 31 March 2019 (2,844) (42) (322) (2,290) (5,498)
----------------------- -------------- --------------- -------- --------- --------
Net Book Value
At 31 March 2018 4,247 131 947 6,044 11,369
At 30 September 2018 1,603 115 892 5,672 8,282
At 31 March 2019 1,603 121 835 5,290 7,849
----------------------- -------------- --------------- -------- --------- --------
8. Trade and other receivables At 30 September
At 31 At 31 2018
March 2019 March
2018
GBP000 GBP000 GBP000
-------------------------------- ------------- ------- ----------------
Trade receivables 1,489 1,615 1,343
Warranty settlement - - 600
Other debtors - 47 36
Prepayments and accrued income 954 1,160 921
--------------------------------- ------------- ------- ----------------
Trade and other receivables 2,443 2,822 2,900
--------------------------------- ------------- ------- ----------------
9. Borrowings At 31 March At 31 At 30
2019 March September
2018 2018
GBP000 GBP000 GBP000
------------------------------------------- ------------ -------- -----------
Short-term borrowings
Finance lease 32 43 32
Deferred consideration for Adept4 Managed - 992 -
IT Limited
Total short-term borrowings 32 1,035 32
------------------------------------------- ------------ -------- -----------
Long-term borrowings
Finance lease 34 61 46
BGF loan notes repayable to BGF between
2021 and 2023 5,000 5,000 5,000
Warrant adjustment relating to BGF
loan notes (829) (1,023) (929)
------------------------------------------- ------------ -------- -----------
Total long-term borrowings 4,205 4,038 4,117
------------------------------------------- ------------ -------- -----------
10. Deferred tax At At At 30 September
31 March 31 March 2018
2019 2018
GBP000 GBP000 GBP000
---------------------------------- ---------- ---------- ----------------
Provision brought forward 1,248 1,416 1,416
Credits to income statement - on
intangibles (84) (84) (168)
Provision carried forward 1,164 1,332 1,248
----------------------------------- ---------- ---------- ----------------
11. Post Balance Sheet Events
On 8 April 2019, the Company announced that it had received
notice of termination of a customer contract which in the year to
30 September 2018, delivered GBP0.7 million of recurring revenue.
The Company disputes the contract termination is valid and is
therefore currently seeking legal redress from the customer.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR FRMRTMBMTBIL
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