TIDMING
RNS Number : 0542A
Ingenta PLC
21 September 2022
21 September 2022
Ingenta plc
Interim Results
Ingenta plc (AIM: ING), ("Ingenta", the "Company" or the
"Group"), a leading provider of world-class software and services
to the global publishing industry, is pleased to announce its
unaudited interim results for the six months to 30 June 2022.
Financial Key Points
-- Group revenues of GBP5.3m (2021: GBP5.1m)
-- 89% of Group revenues recurring in nature (2021: 85%)
-- Gross profit margin 53% (2021: 47%)
-- Adjusted EBITDA(*) up 67% to GBP1.3m (2021: GBP0.7m)
-- Cash from operations up 26% to GBP1.6m (2021: GBP1.3m)
-- Cash balances increased to GBP4.4m (31 December 2021: GBP3.1m)
-- Cash generation of GBP1.4m (2021: GBP0.8m)
-- Earnings per share of 3.23 pence (2021: 2.25 pence)
-- Progressive dividend policy with an interim dividend of 1.2 pence per share (2021: 1 pence)
Operational Key Points
-- Two Vista upgrade projects in progress with completion due in second half of 2022
-- Edify implementation project commenced and substantially
completed in the first half of 2022 vindicating the fast-track
deployment model
(*) Earnings before Interest, Tax, Depreciation and Amortisation
is calculated before foreign exchange differences and restructuring
costs. See Statement of Comprehensive Income for reconciliation
As previously announced on 13 September 2022, Ingenta will be
presenting via the Investor Meet Company platform on 21 September
2022 at 15.30 (BST). To sign up to the Ingenta presentation for
free via Investor Meet Company please click the following link:
https://www.investormeetcompany.com/ingenta-plc/register-investor
.
Dividend Timetable
The Company is pleased to confirm that an interim dividend of
1.2 pence per share will be paid on 4 November 2022. The
ex-dividend date is 6 October 2022 and the associated record date
for the interim dividend is 7 October 2022.
Martyn Rose, Chairman of Ingenta plc, commented:
"I am pleased to announce not only an increase in revenues in
the first half of 2022, but also a continuation of the operational
efficiency gains outlined in prior periods. Revenue growth has been
delivered by our Commercial division, which has successfully
expanded the Vista as a service offering through the customer base.
This is an encouraging trend as we look to forge closer alliances
with our customers by removing their technology administration
overhead allowing them to focus on their core activities.
The Content division has also refined its fast-track deployment
of the Edify content distribution platform which we believe is a
valuable differentiator in this market. A project can now be rolled
out in under 3 months, which we hope to leverage in future sales
opportunities.
The Group aims to sustain revenue growth by increasing the
uptake of our service offering to existing customers within the
core Commercial and Content divisions. In combination with this,
there is an active pipeline of sales opportunities in both
traditional and adjacent vertical markets. Given these successes,
and reflecting our progressive dividend policy, the Board proposes
to pay an interim dividend of 1.2 pence per share and continues to
explore other opportunities to return value to shareholders."
Scott Winner, CEO commented:
"The first six months of 2022 have been hugely positive for
Ingenta, as we reap the rewards of the revised strategic direction
put in place several years ago. In particular, our focus on
providing more comprehensive services to our Vista customers has
increased the value we provide to them, leading to our first period
of revenue growth since I became CEO.
Another important achievement was our decision to expand our
offering to better cover the full breadth of customers in our
markets. With the delivery of our web-based multi-tenancy
solutions, we are able to serve customers from the very small,
alongside our comprehensive solutions for very large customers in a
cost-appropriate way. This expands our ability to serve current
verticals, broadening our addressable market while also positioning
us for inroads into adjacent verticals.
Our sales and marketing team now have the ability to pursue a
broader range of customers allowing us to establish partnerships
with customers at an early stage. As they mature, they can grow
into our comprehensive offerings targeted at larger
businesses."
Certain information contained in this announcement would have
been deemed inside information as stipulated under the UK version
of the EU Market Abuse Regulation (2014/596) which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018, as
amended and supplemented from time to time, until the release of
this announcement.
For further information please contact:
Ingenta plc Tel: 01865 397 800
Scott Winner / Jon Sheffield
Cenkos Securities plc Tel: 0207 397 8900
Nicholas Wells / Katy Birkin / Dan Hodkinson
Financial Review
The 2022 financial year is the first period when all the Group's
planned efficiency savings came to fruition. In combination with
this, the Group has also reported increased revenues compared to
the same period last year. This revenue growth has been generated
from the Commercial arm of the Group, specifically within the
existing Vista customer base, as they take up more recurring
services.
Statement of Comprehensive Income
Group revenue increased by 3% to GBP5.3m (2021: GBP5.1m) driven
by the increased uptake of the Vista service offering mentioned
above. As a result, the Group's recurring revenue percentage now
stands at 89% (2021: 85%). Gross profit percentages have also
improved to 53% (2021: 47%) as the previously reported operational
efficiency initiatives take full effect. Administrative expenses
include GBP0.5m of unrealised foreign exchange losses relating to
the Group's intercompany balances which are trading in nature. In
the prior period interim results, these exchange gains and losses
were not included within administration expenses but were offset
and included within ' exchange differences on translating foreign
operations'. Adjusted EBITDA, after accounting for these exchange
differences, increased by 68% to GBP1.3m (2021: GBP0.7m).
Total comprehensive income for the period was GBP1m (2021:
GBP0.4m) which incorporated a net GBP0.018m foreign exchange
translation loss (2021: GBP0.012m loss).
Statement of Cash Flows and Financial Position
The efficiency gains noted above have flowed through to cash
generation and the Group reported operating cash inflows of GBP1.6m
(2021: GBP1.3m). The Group's balance sheet remains strong, with no
debt other than leases, and cash balances of GBP4.4m (2021:
GBP3.1m).
Outlook
The first half of the year is seasonally stronger and more
predictable as customers work through committed projects and annual
budgetary spend allocations. Although we expect such work to
continue, the timing and extent is less certain in the second half
of the year as customers look to align budgets and strategy for the
following year. Nevertheless, we remain optimistic about the
prospects for this year and beyond, and the Board anticipates that
results for the year ended 31 December 2022 will be ahead of
current market expectations, taking into account the positive
effect of a number of smaller non-recurring items. Looking ahead to
2023, the Board remains cautiously optimistic that the underlying
positive momentum of the Group will be maintained.
Jon Sheffield
Chief Financial Officer
Unaudited Condensed Consolidated Interim Statement of
Comprehensive Income
Unaudited Unaudited
Six months Six months
ended ended
30 June
2022 30 June 2021
Note GBP'000 GBP'000
Revenue 5,271 5,106
Cost of sales (2,497) (2,692)
------------ -------------
Gross profit 2,774 2,414
Sales and marketing expenses (367) (353)
Administrative expenses (1,861) (1,673)
Profit from operations 546 388
Finance costs (10) (14)
Profit before tax 536 374
Tax (8) -
Retained profit for the period 528 374
Other comprehensive expenses which
will be reclassified subsequently
to profit or loss:
Exchange differences on translating
foreign operations 478 2
Total comprehensive profit for the
period 1,006 376
Basic profit per share - pence 4 3.23 2.25
------------ -------------
Diluted profit per share - pence 4 3.12 2.16
Analysis of profit from operations:
Profit before net finance costs,
tax, depreciation and amortisation,
restructuring costs and foreign exchange
gains and losses (adjusted EBITDA) 1,255 748
Depreciation (213) (293)
Amortisation - (50)
Foreign exchange gain / (loss) (496) (14)
Restructuring costs - (3)
------------ -------------
Profit from operations 546 388
Unaudited Condensed Consolidated Interim Statement of Financial
Position
Unaudited Unaudited
30 June 2022 30 June 2021
Note GBP'000 GBP'000
Non-current assets
Goodwill 3 2,661 2,661
Other intangible assets 3 - 8
Property, plant & equipment 500 889
Deferred tax 1,163 -
4,324 3,558
Current assets
Trade and other receivables 5 1,150 1,434
Cash and cash equivalents 4,413 3,102
5,563 4,536
Total assets 9,887 8,094
-------------- --------------
Equity
Share capital 1,692 1,692
Merger reserve 11,055 11,055
Reverse acquisition reserve (5,228 ) (5,228 )
Translation reserve (127 ) (837 )
Share option reserve 107 80
Retained earnings (1,750 ) (2,982 )
5,749 3,780
Non-current liabilities
Deferred tax liability 88 2
Leases 77 336
-------------- --------------
165 338
Current liabilities
Trade and other payables 6 1,856 1,817
Deferred income 2,117 2,159
-------------- --------------
3,973 3,976
Total equity and liabilities 9,887 8,094
-------------- --------------
Unaudited Condensed Consolidated Interim Statement of Changes in
Equity
Share Merger Reverse Translation Share Retained Total
capital reserve acquisition reserve option earnings
reserve reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 January
2022 1,692 11,055 (5,228) (605) 88 (2,278) 4,724
Share based payment
expense - - - - 19 - 19
Transactions with
owners - - - - 19 - 19
--------- --------- ------------- ------------ --------- ---------- --------
Profit for the
period - - - - - 528 528
Other comprehensive
income:
Exchange differences
on translation
of foreign operations - - - 478 - - 478
--------- --------- ------------- ------------ --------- ---------- --------
Total comprehensive
income / (expense)
for the period - - - 478 - 528 1,006
--------- --------- ------------- ------------ --------- ---------- --------
Balance at 30 June
2022 1,692 11,055 (5,228) (127) 107 (1,750) 5,749
--------- --------- ------------- ------------ --------- ---------- --------
Share Merger Reverse Translation Share Retained Total
capital reserve acquisition reserve option earnings
reserve reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 January
2021 1,692 11,055 (5,228) (839) 61 (3,175) 3,566
Shares bought back
into treasury - - - - - (181) (181)
Share based payment
expense - - - - 19 - 19
Transactions with
owners - - - - 19 (181) (162)
--------- --------- ------------- ------------ --------- ---------- --------
Profit for the
period - - - - - 374 374
Other comprehensive
income:
Exchange differences
on translation
of foreign operations - - - 2 - - 2
--------- --------- ------------- ------------ --------- ---------- --------
Total comprehensive
income / (expense)
for the period - - - 2 - 374 376
--------- --------- ------------- ------------ --------- ---------- --------
Balance at 30 June
2021 1,692 11,055 (5,228) (837) 80 (2,982) 3,780
--------- --------- ------------- ------------ --------- ---------- --------
Unaudited Condensed Consolidated Interim Statement of Cash
Flows
Unaudited Unaudited
Six months Six months
ended ended
30 June
2022 30 June 2021
GBP'000 GBP'000
Profit before tax 536 374
Adjustments for:
Depreciation and amortisation 213 343
Share based payment expense 19 19
Interest expense 10 14
Unrealised foreign exchange differences 478 2
Decrease in trade and other receivables 660 784
Decrease in trade and other payables (308) (260)
Cash inflow from operations 1,608 1,276
Tax Paid (8) -
Net cash inflow from operating activities 1,600 1,276
Cash flows from financing activities
Shares bought back into treasury - (181)
Payment of leases (135) (239)
Interest paid (10) (14)
------------ -------------
Net cash used in financing activities (145) (434)
Cash flows from investing activities
Purchase of property, plant and equipment (48) (63)
Net cash used in investing activities (48) (63)
Net increase in cash and cash equivalents 1,407 779
Cash and cash equivalents at beginning
of period 3,006 2,323
Cash & cash equivalents at end of period 4,413 3,102
------------ -------------
Notes to the Unaudited Interim Report for the six months ended
30 June 2022
1. Nature of operations and general information
Ingenta plc (the "Company") and its subsidiaries (together the
"Group") is a provider of technology and supporting services to
content providers and publishers. The nature of the Group's
operations and its principal activities are set out in the full
annual financial statements.
The Company is incorporated in the United Kingdom under the
Companies Act 2006. The Company's registration number is 00837205
and its registered office is Suite 2, Whichford House, Oxford OX4
2JY. The condensed consolidated interim financial statements were
authorised for issue by the Board of Directors on 21 September
2022.
The financial information set out in this interim report does
not constitute statutory accounts as defined in section 404 of the
Companies Act 2006. The Group's statutory financial statements for
the year ended 31 December 2021, prepared under IFRS as adopted by
the European Union, have been filed with the Registrar of
Companies. The auditor's report on those financial statements was
unqualified and did not contain a statement under section 498 (2)
or section 498 (3) of the Companies Act 2006.
2. Basis of preparation
These unaudited condensed consolidated interim financial
statements are for the six months ended 30 June 2022. They have
been prepared following the recognition and measurement principles
of UK adopted international accounting standards in conformity with
the requirements of the Companies Act 2006. They do not include all
of the information required for full annual financial statements
and should be read in conjunction with the consolidated financial
statements of the Group for the year ended 31 December 2021.
These condensed consolidated interim financial statements have
been prepared on the going concern basis under the historical cost
convention and have been prepared in accordance with the accounting
policies adopted in the last annual financial statements for the
year ended 31 December 2021.
The accounting policies have been applied consistently
throughout the Group for the purposes of preparation of these
consolidated interim financial statements.
A detailed set of accounting policies can be found in the annual
accounts available on our website, www.ingenta.com or by writing to
the Company Secretary at the registered office as above.
3. Goodwill and Intangibles
Full details of the Group's policies on Goodwill and Intangibles
is presented in the financial statements for the year ended 31
December 2021.
4. Profit per share
Basic profit per share is calculated by dividing the profit
attributable to ordinary shareholders by the weighted average
number of ordinary shares outstanding during the period.
For diluted profit per share, the weighted average number of
ordinary shares in issue is adjusted to assume conversion of all
dilutive potential ordinary shares.
Six months Six months
ended ended
30 June 2022 30 June 2021
Attributable profit (GBP'000) 528 374
Weighted average number of
ordinary basic shares (basic) 16,331,679 16,625,214
Weighted average number of
ordinary shares (diluted) 16,933,230 17,306,459
Profit per share (basic) arising
from both total and continuing
operations 3.23p 2.25p
Profit per share (dilutive)
arising from both total and
continuing operations 3.12p 2.16p
5. Trade and other receivables
Trade and other receivables comprise the following:
30 June 30 June
2022 2021
GBP'000 GBP'000
Trade receivables - gross 834 1,148
Less: provision for impairment
of trade receivables (101) (142)
-------- --------
Trade receivables - net 733 1,006
Other receivables 4 76
Prepayments and accrued income 413 352
1,150 1,434
6. Trade and other payables
Trade payables comprise the following:
30 June 30 June
2022 2021
GBP'000 GBP'000
Trade payables 299 211
Social security and other
taxes 337 383
Other payables 522 631
Accruals 698 592
1,856 1,817
7. Contingencies and commitments
There were no contingencies or commitments at the end of this or
the comparative period.
8. Post balance sheet events
There were no material events subsequent to the end of the
interim reporting period that have not been reflected in the
interim financial statements.
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR MZGZLNGVGZZM
(END) Dow Jones Newswires
September 21, 2022 02:00 ET (06:00 GMT)
Ingenta (LSE:ING)
Historical Stock Chart
From Jun 2024 to Jul 2024
Ingenta (LSE:ING)
Historical Stock Chart
From Jul 2023 to Jul 2024
