TIDMTHRU
RNS Number : 1862P
Thruvision Group PLC
08 June 2020
8 June 2020
Thruvision Group plc
(" Thruvision " or the " Group ")
Results for the Year ended 31 March 2020
Thruvision (AIM: THRU), the specialist provider of
people-screening technology to the international security market,
announces results for the financial year ended 31 March 2020.
Highlights
-- Good revenue growth to GBP8.0 million (2019: GBP6.0 million)
with operating loss before tax reduced to GBP1.7 million (2019:
GBP2.1 million);
-- Adjusted loss before tax* of GBP1.2 million (2019: GBP1.7 million);
-- Ten new customers in the year accounting for 55% of units
sold and including US Customs, British Government and Morrisons,
along with repeat orders from four existing customers;
-- Notable uptake of new product variants which has led to
increased average revenue per unit and gross profit margins;
-- COVID-19 pandemic is changing the security industry landscape
by prioritising the need for 'safe distance' security screening
technology like Thruvision;
-- Cash at 31 March 2020 of GBP8.4 million (31 March 2019: GBP9.4 million).
* Adjusted loss before tax is defined as loss before tax from
continuing operations, adding back share-based payments and share
buyback costs.
On 19 March 2020 Thruvision Group Plc entered into a trade with
Investec to sell $4.4m USD at the available spot rate. IFRS 9
requires the gain to be recorded within Current Assets and as such
the difference in value between the prevailing year end USD/GBP
exchange rate and the value of the contract is not recorded with
the Group's cash and cash equivalents. The gain was GBP0.2m
realised and reported in April 2020 as a result.
Commenting on the results, Colin Evans, Chief Executive,
said:
"We have had a positive year, albeit affected in the latter
stages by the COVID-19 pandemic. Our three key markets of Profit
Protection, Customs and, most recently, Aviation have all performed
well, validating our decision to place our focus in these areas.
Looking forward, each of these markets is strongly driven by the
requirement for 'safe distance' security measures and the need to
remove physical "patdowns" . I have been encouraged by the
increased interest in our technology and resulting new sales
opportunities in recent weeks.
Our broadening product range, robust balance sheet and the
strength of our sales pipeline mean we are well positioned to
continue to trade through this difficult period and we remain
confident about our medium-term prospects."
For further information please contact:
Thruvision Group plc +44 (0)1235 425 400
Tom Black, Executive Chairman
Colin Evans, Chief Executive
Investec Bank PLC (NOMAD & Broker) +44 (0)20 7597 5970
Patrick Robb / James Rudd / Sebastian Lawrence
FTI Consulting LLP
+44 (0)20 3727 1000
Matt Dixon / Shamma Kelly
About Thruvision
Thruvision is the leading provider of safe distance, people
security screening technology. Using patented passive terahertz
technology, Thruvision is uniquely capable of detecting metallic
and non-metallic threats including weapons, explosives and
contraband items that are hidden under clothing, at distances
between 3m and 10m. Addressing the growing need for safe, fast and
effective security, Thruvision completely removes the need for
physical "pat-downs" and has been vetted and approved by the US
Transportation Security Administration for surface transportation.
Operationally deployed in 20 countries around the world, Thruvision
is used for aviation and transportation security, retail supply
chain loss prevention, facilities and public area protection and
customs and border control. The company has offices near Oxford,
and Washington DC.
www.thruvision.com
Chairman's statement
The Group achieved good growth in the year with revenues up by
34% to GBP8.0m. This was achieved by ten new customers taking
delivery of their first units combined with existing customers
expanding their Thruvision unit count. Although entirely new
customers are vital to any growth business, the latter group is
particularly pleasing as it provides solid evidence of our
technology's effectiveness. While revenue growth was marginally
behind our initial expectations, due to the start of the COVID-19
impact in March, good progress was made in the eleven months prior
to that. This, together with the quality of our current sales
pipeline, suggests that we remain well on track to become a
mainstream supplier of people screening security technology to the
international market.
Trading, Markets and COVID-19
Before the COVID-19 crisis struck, it was already becoming
evident that our greatest opportunities lie in the Customs, Profit
Protection and most recently Aviation markets, where regulatory
demands and return-on-investment underpin the business case to
purchase Thruvision's products. In the Customs market, we added US
Customs and Border Protection (CBP) and Macau Customs as new
customers, and saw follow on awards from US State Department's
Bureau of International Narcotics and Law Enforcement (INL), and
Hong Kong Customs. In Profit Protection, Morrisons selected
Thruvision to underpin its distribution centre security upgrade
programme across the UK, and we secured orders from two further new
customers, including our first in North America. On the strength of
this progress, we are investing in launching our Profit Protection
offering into certain countries in mainland Europe.
In Aviation, we continued to make good progress with the US
Transportation Security Administration's (TSA's) testing and trials
programme to obtain the necessary approvals to operate in the
highly regulated passenger screening market. Our newly developed
AI-based detection algorithm, developed to meet US legal
requirements, is performing well and, since period end, La Guardia
Airport has purchased Thruvision units using this new capability
for screening employees in its flagship new terminal.
The COVID-19 crisis caused inevitable delays in order flow in
the last month of the period but, more significantly, it has had a
profound impact on our industry landscape, which is likely to drive
long-term positive effects for the Group. Legacy security
solutions, such as walk-through metal detectors and traditional
airport body scanners, often require close-proximity physical
searches to resolve alarms. It is now clear that the security
industry cannot continue with such searches, and many organisations
are therefore reviewing how they can safely maintain security in
the future. Since Thruvision operates at a physically distant range
of several metres and obviates the need for physical searches, our
'safe distance' security technology is attracting considerable new
interest.
We previously reported that we were developing several new
product variants. We have been very pleased with the uptake which
increased our average revenue per unit and gross margins. Although
this interest has been across our whole customer base, we were
particularly pleased to receive our first development order for the
Group's new higher performance 16-channel sensor from a global
technology firm seeking to improve data centre security, a new and
developing market segment for us.
Through the COVID-19 lockdown period in both the UK and US, we
have been able to maintain both sales and manufacturing operations,
albeit at reduced levels, while prioritising the health and
wellbeing of our staff . Based on the most recent UK Government
guidance, we are now increasing activity levels again and I would
like to thank our staff for their dedication and commitment through
this difficult period. Our headcount has now reached 37 and we are
continuing to invest further in sales staff in North America, the
UK and Europe.
The Board is acutely aware that, as I cannot be regarded as
independent due to my long association with Thruvision, we have
only one Independent Director and the Board has started discussing
the timing of adding another Independent Director. In the meantime,
we have a full-time Company Secretary and continue to operate to
very high levels of governance for a business of our size .
Outlook
Although the COVID-19 crisis caused a slowdown in sales in
March, we have maintained good levels of engagement with customers
throughout. In fact, our 'safe distance' people screening
capability, which removes the need for physical searches, has given
additional impetus to a number of sales opportunities where we were
already well placed. We successfully maintained operations through
the lockdown, and our supply chain remains solidly intact. Given
the evolving nature of COVID-19, it remains too early to provide
guidance on the Group's prospects for the financial year ending 31
March 2021. However, given our healthy cash balance, zero debt and
strengthening sales pipeline based on an increased need for 'safe
distance' security post COVID-19, we remain confident about our
strategic prospects.
Update on strategy
Thruvision addresses the growing international need to safely,
quickly and comprehensively security screen individuals for
weapons, contraband or other illicit non-metallic items that might
be concealed in their clothing. The two most widely deployed
existing technologies, walk-through metal detectors and airport
body scanners do not meet this need. Critically, both these
technologies require close proximity, physical search to resolve
alarms, and the COVID-19 pandemic is forcing security users
globally to re-evaluate the safety implications of this.
Thruvision comprehensively solves this problem. By allowing a
security guard to see concealed items of any material, as small as
3cm by 3cm, and from a safe distance of 3 metres, Thruvision
completely removes the need for physical search. This combination
of safe distance, contactless operation with reliable,
comprehensive detection is unique to Thruvision.
With a growing list of internationally recognised 'flagship'
government and commercial customers now in place, we have
transitioned our technology from an early stage niche into the
mainstream international security market. With this transition, we
have refined our focus onto the three key markets where purchasing
of people security screening technology is either driven by
regulation or commercial return on investment. These are:
-- Customs - now a well-established market for Thruvision where
we are screening for predominantly non-metallic, prohibited items
such as cash and drugs, at all types of border checkpoints
including airports, land crossings, seaports, cruise-liner
terminals, bridges and railway stations. Customers are national
government agencies resulting in total order quantities that could
be substantial although sales cycles are extended by government
procurement procedures. Key customers here now include US Customs
and Border Protection (CBP), Hong Kong Customs, Macau Customs and
the US State Department's Bureau of International Narcotics and Law
Enforcement (INL).
-- Profit Protection - another well-established market
(previously referred to as Loss Prevention) where we are screening
again for largely non-metallic items being stolen by employees from
retail distribution centres. The market consists of a potentially
very large number of retailers covering a number of sub-sectors
including grocery, fashion, electronics, healthcare, and supporting
third-party logistics. With a clear financial return on investment
driving purchasing, relatively short sales cycles have been
demonstrated. Flagship customers include Morrisons, Next, JD
Sports, Matalan, Sony and Hermes.
-- Aviation - this has become a new key market in the last year
where we are screening people for prohibited items in the regulated
environment at airport security checkpoints. Today we have TSA
approval for screening employees at airports in the US, with Los
Angeles, Seattle and LaGuardia Airports all now customers. We are
also steadily working through the necessary TSA approvals for
Thruvision to be also used for passenger screening in the US which
should then also open the international aviation security market to
us. The COVID-19 crisis has injected urgency into identifying and
deploying 'contactless' security technology into airports globally
which is helping us make more rapid progress in this area than
would otherwise be the case.
With this refinement of focus we are now optimising our product
range to meet the specific needs of each of these markets, and we
are investing in strengthening our sales and marketing teams in
these areas.
We continue to operate in and receive interest from two further
markets, characterised by weapons detection and counter-terrorism,
where the nature and likelihood of the threat generally leads to
longer new customer purchasing cycles. These markets are:
-- Surface Transport - this is where we are screening for
suicide vests and automatic weapons at railways, subways and
airport concourses. Customers in this segment include governments
and a combination of city or regional public sector organisations.
We have TSA approval for this kind of high-throughput 'detection at
range' requirement and key customers include Los Angeles Metro and
the Philippines Government.
-- Entrance Protection - this is where we are screening for
weapons at entrances to high profile or high security buildings,
sports and entertainment venues and other public areas. Covering
both public and private sector sites, the aim here is to ensure
sites are protected from non-metallic threat items and to speed up
the process of screening visitors. A key customer here is the
British Government's Brexit Negotiation Headquarters in central
London.
We have ensured our product range continues to meet the needs of
both these markets, but we have adopted a more reactive stance
given the weaker market demand in these areas. We are seeing some
pick up in interest due to COVID-19 and will re-evaluate this
stance over the coming months as the fuller implications of living
in a post-pandemic world become clearer.
Business Review
Sales
Although curtailed by the impact of the COVID-19 crisis in
March, we still recorded good sales performance for the year, with
a total of 114 units shipped (2019: 109). Importantly, this
included ten new customers including 'flagship' organisations CBP,
Morrisons and Los Angeles World Airports. These new customer sales
accounted for 55% of units sold with the balance being purchased by
existing customers. Customs was our strongest segment accounting
for half of units sold and with Profit Protection and Surface
Transport accounting for almost a quarter each.
Regional updates
-- Americas : We continued to focus heavily on the Customs and
Aviation segments and saw 54% of revenue in the period come from
customers in the US. We secured headline orders from the State
Department's Bureau of International Narcotics and Law Enforcement
(INL) and CBP, and since the year-end, LaGuardia Airport for
employee screening. As a result of the COVID-19 crisis, we have
seen added impetus in the aviation market where 'safe distance'
security is clearly needed and where we expect to build on the good
progress so far by obtaining the TSA approvals needed for passenger
screening in airports. Separately, we received our first order from
our Profit Protection sales partner and secured a contract from a
global technology firm to develop a solution capable of reliably
detecting data sticks to enhance data centre security.
-- UK and Europe : Our primary regional focus has been building
our Profit Protection business, and we continued to make good
progress. We secured two new customers during the year, Sports
Direct and Morrisons which rolled Thruvision out across all its
distribution centres as part of a significant security upgrade
programme. Separately, the British Government selected our
technology to form the basis of new visitor-friending security for
the Brexit Trade Negotiations Headquarters in central London.
-- Asia Pacific : Here, we focused on the Customs and Surface
Transport segments. We deployed a fifth batch of units with our
Hong Kong customer and won a competitive tender to supply units to
Macau Customs. We received a fourth order from our
Philippines-based partner for Transportation security. Given the
COVID-19 crisis, we decided to reduce our direct investment in
expanding our footprint in the region. This resulted in the closure
of our Sydney office and we will focus on managing our existing
partner network from the UK for the foreseeable future.
-- Middle East and Africa : Our dedicated sales investment in
this region enjoyed a good year of pipeline building in all the
major GCC states. With an emphasis on Customs and entrance
security, we expect to see sales starting to come through as
regional economies recover from the COVID-19 crisis.
Routes to market
Our routes to market vary depending on region and market sector.
We operate directly with end customers in the US where we have
built strong relationships across TSA, CBP, State Department and
the Defense Department. We currently install and support Thruvision
deployments in the US directly but are building out our partner set
to provide a country-wide support infrastructure as our units are
deployed operationally across the country.
For Profit Protection in the UK and Europe, we mostly sell
directly to end-customers, although we are starting to appoint
Profit Protection-specific partners in mainland Europe where we
believe interest levels are increasing. Similarly, we work through
local partners in Asia Pacific and the Middle East, where we engage
with end customers directly alongside our local partners. With
international travel now severely restricted for the foreseeable
future, we have further developed our video conference-based
product demonstration and training capability to maintain
momentum.
Manufacturing and support
Our manufacturing capability is now mature and, including our
outsourced US facility, capable of producing the near- to
medium-term volumes we are expecting. We have the infrastructure in
place to take production levels higher than this if demand dictates
and we remain confident of our ability to scale production as
needed.
We have rolled out a more comprehensive support offering to key
customers that offers a complete maintenance programme for an
annual charge. This is proving to be especially important for US
Government buyers and is allowing us to build up recurring revenue.
We are also starting to see a number of customers moving into an
equipment refresh cycle for our older units, and we have also been
able to offer a trade-in or upgrade path for these.
New product development
We have seen rapid market adoption of our Thruvision TAC8
product which we launched in the summer of 2018, after its approval
by the TSA. As well as driving our average revenue per unit higher,
it has also formed the basis our new product range including our
LPC8, designed specifically for the profit protection market and
our new aviation checkpoint camera, the CPC8 purchased by LaGuardia
Airport.
As well as making significant improvements to our hardware, we
completed our AI-based image processing software during the year.
This forms the basis of our new automatic threat detection
capability which is an important element of our CPC8 product.
Looking forward, we expect to further expand our product range
in FY21 to include a new very high-throughput, multi-person
entrance screening product.
Competition
As we move into the broader mainstream market, we are starting
to compete more directly with airport body scanners in a number of
areas with the aim of expanding our market share here in due
course. We continue to see a handful of smaller, early stage
technology companies in the market, focused principally on the
entrance security market. None of these have yet entered any form
of formal TSA testing and we do not believe any have yet reached a
significant level of sales. We maintain a watching brief.
IP protection
We continue to invest in the research and development of the
Thruvision product range and, where appropriate, suitable patent
protection is put in place. During the year, applications for two
additional patents were submitted to the Patent Office and they are
currently being assessed in accordance with the normal patent
application process.
Staff
We increased headcount from 34 to 37 staff through the year.
This increase was predominantly in Sales and Sales Support. Due to
the significant global slowdown caused by the COVID-19 pandemic, we
closed our Sydney operation at the end of the year but we expect to
further strengthen our aviation and profit protection sales and
marketing teams in FY21. Voluntary staff attrition was nil.
As a manufacturing business with recently upgraded production
facilities, we have been able to implement, with minimal
operational impact, new working practices that fully comply with
the UK Government's latest guidelines on social distancing and
related health and safety at work. We will continue to monitor this
guidance, both in the UK and the US, to ensure that we continue to
comply fully with best practice in this regard as it develops.
Financial Review
Summary
For the year ended 31 March 2020, Thruvision revenues grew by
34% to GBP8.0 million (2019: GBP6.0 million) which resulted in a
reduced operating loss of GBP1.7 million (2019 loss: GBP2.1
million).
The Directors believe that adjusted loss before tax is currently
an important measure of the performance of the business. The Group
recorded an adjusted loss of GBP1.2 million (2019: GBP1.7 million).
This was arrived at as follows:
Adjusted loss:
2020 2019
GBP'000 GBP'000
------------------------------------------- -------- --------
Loss before tax from continuing operations (1,502) (2,060)
Share-based payment 297 207
Share buyback costs - 119
------------------------------------------- -------- --------
Adjusted loss before tax for the year from
continuing operations (1,205) (1,734)
------------------------------------------- -------- --------
Further details on the above are provided in note 4.
New product sales of Thruvision units resulted in 114 units
delivered in 2020 (2019: 109) at a unit gross margin of 48% (2019:
40%). This included ten new customers and repeat business with four
others. The introduction of the higher priced new TSA-approved
Thruvision TAC8 unit helped increase overall Gross Margin to 47%
(2019: 39%). Unit sales increased by over 400% in our main target
market of the US and the remainder were spread evenly across all
regions, showing balanced growth. Average revenue per unit
increased to GBP68k (2019: GBP54k) year-on-year as a result of
being able to achieve higher pricing on existing models as the
business became more established and starting to sell the new
higher priced TAC8 models in the US.
A focus on the reduction of non-productive overheads, which
continued to reduce as a percentage of revenue, generated savings
that were used to partially offset our investment in the Sales and
Marketing resource required to drive growth, and to expand our
manufacturing capacity to deal with expected short to medium-term
demand. Three employees joined the company during the year to
increase our sales and marketing capacity.
The cash balance at the year-end was GBP8.4 million (2019:
GBP9.4 million) as a result of good control over cash collections
from customers. We also completed a further major order to the
Philippines in Q4 again this year, resulting in a debtor over the
period-end of GBP1.75 million. It is expected that this cash will
be received by December 2020.
Key Performance Indicators ('KPIs')
We consider the following to be our KPIs which track the trading
performance and position of the business.
KPIs
2020 2019
GBP'000 GBP'000
-------------------------- -------- --------
Revenue 8,002 5,981
Number of units shipped 114 109
Average revenue per unit 68 54
Gross Profit 3,760 2,327
Gross Margin 47% 39%
Overheads (5,280) (4,277)
Operating loss (1,729) (2,108)
Number of employees at 31
March 2020 37 34
-------------------------- -------- --------
Revenue
Thruvision revenues grew by 34% to GBP8.0 million (2019: GBP6.0
million). Revenues from unit sales contributed GBP7.8 million
(2019: GBP5.9 million), and development revenue was GBP0.2 million
(2019: GBP0.1 million).
The growth in revenues over the prior year was based on an
increase in the number of units delivered (noting March order flow
was reduced by COVID-19 lockdown) and an increase in average
revenue per unit. The strategic progress made with various US
Federal Government agencies is reflected in the strong revenue
growth here, and we expect to see the US remain the primary focus
moving forwards.
2020 2019
Revenue GBP'000 GBP'000
--------------------- -------- --------
Units 7,765 5,901
Development 237 80
--------------------- -------- --------
Total 8,002 5,981
--------------------- -------- --------
2020 2019
Revenue by Geography GBP'000 GBP'000
--------------------- -------- --------
UK & Europe 1,234 1,338
Americas 4,311 975
Asia-Pacific 2,430 3,640
Middle East & Africa 27 28
--------------------- -------- --------
Total 8,002 5,981
--------------------- -------- --------
Gross Profit
Gross Profit increased to GBP3.8 million in the period (2019:
GBP2.3 million) with Gross Margin increasing to 47% (2019: 39%).
The Gross Margin increase was due to a higher mix of the new
TSA-approved TAC8 product sales, the consequent improvement in
Average Revenue Per Unit, and by further manufacturing-cost
reductions compared to the prior year. Product Gross Margin
increased to 48% (2019: 40%) and was offset, in a minor way, by
delivering the one customer-funded development project in the year
at broadly break-even.
2020 2019
Gross Margin GBP'000 GBP'000
------------------------- -------- --------
Unit Revenue 7,765 5,901
Unit Gross Profit 3,755 2,337
------------------------- -------- --------
Gross Margin % 48% 40%
Development Revenue 237 80
Development Gross Profit 6 (10)
------------------------- -------- --------
Gross Margin % 2% (13)%
Overall Revenue 8,002 5,981
Overall Gross Profit 3,761 2,327
------------------------- -------- --------
Gross Margin % 47% 39%
------------------------- -------- --------
Overheads
Overheads increased by 23% to GBP5.3 million (2019: GBP4.3
million) primarily due to a focus on sales and marketing investment
. Overall however, they reduced as a % of revenue and we continue
to focus on closely managing our overhead base whilst growing the
business.
Sales & Marketing expenditure was increased by GBP0.5
million to invest in our strategically important US and Profit
Protection markets. This additional investment was made to
capitalise on our 'flagship' customer deployments in these regions
and was used to increase direct marketing and provide enhanced
pre-sales capability.
Manufacturing and R&D engineering costs increased by GBP0.3
million where we focused on increasing production capacity and
strengthening our software capability, particularly to enable the
development of new AI-based threat-detection algorithms.
Property and administration costs increased due to the full year
effect of recruitment in late FY19, while depreciation increased
principally due to the effect of operating lease costs now being
recognised as depreciation under IFRS 16 (amounting to GBP158k and
not being comparable to last year) and manufacturing facility
investments made late in FY19.
PLC costs decreased due to lower levels of legal and
professional costs incurred in year.
2020 2019
Overheads GBP'000 GBP'000
------------------------------ -------- --------
Engineering 1,510 1,268
Sales and Marketing 1,557 1,100
Property and administration 492 432
Management 738 701
PLC costs 533 595
Depreciation and amortisation 450 181
------------------------------ -------- --------
Total Overheads 5,280 4,277
------------------------------ -------- --------
LTIP 297 207
------------------------------ -------- --------
Share buyback costs - 119
------------------------------ -------- --------
FX (gains) (88) (163)
------------------------------ -------- --------
Total Administration
costs 5,489 4,440
------------------------------ -------- --------
Looking forward, we expect to see further investment,
principally in Sales & Marketing, but at a rate below the
headline growth rate of the business. We do not expect to
materially increase management and administration or PLC costs in
the near-term.
Operating loss
Operating Loss from operations before tax including
depreciation, share-based payments, FX and interest improved to
GBP1.7 million (2019 loss: GBP2.1 million).
Discontinued profit/loss
Additional deferred consideration, in excess of expectations
last year, were received in the year totalling GBP265k. Other
discontinued costs relate to the closure of our Australian office
as well as further minor professional advisor costs in relation to
the discontinued part of the business.
Taxation
As a result of brought-forward tax losses we do not expect to
pay the full rate of UK corporation tax in the next financial year.
The Income Statement tax credit for the year of GBP223k (2019:
GBP23k) relates to the expected R&D tax credit reclaim, with
the increase this year primarily due to a prudent assessment last
year on the expected R&D credit receivable.
At 31 March 2020, the Group had unutilised tax losses carried
forward of approximately GBP11.5 million (2019: GBP10.5 million).
Given the varying degrees of uncertainty as to the timescale of
utilisation of these losses, the Group has not recognised GBP11.5
million (2019: GBP10.8 million) of potential deferred tax assets
associated with these losses. At 31 March 2020, the Group's net
deferred tax liability stood at GBPnil (2019: GBPnil).
Cash
The Group cash and cash equivalents at 31 March 2020 were GBP8.4
million (2019: GBP9.4 million).
On 19 March 2020 Thruvision Group Plc entered into a trade with
Investec to sell $4.4m USD at the available spot rate on the day of
1.1735. As the company was not able to transact the swap on the day
due to the cash being in a 31-day savings account a forward
contract was taken out. This meant the company was able to fix the
overall $4.4m balance at a favourable fixed rate in GBP cash, which
was completed on 22 April 2020.
IFRS 9 requires this balance to be recorded as a Derivative
financial instrument and as such the difference in value between
the prevailing year end USD/GBP exchange rate of 1.24 and the value
of the contract is not recorded with the Group's cash and cash
equivalents. The company had initially recorded this deal as a cash
equivalent of GBP0.2m and included as cash in the Group's RNS of 4
April 2020. Subsequently this was presented separately as a
Derivative financial instrument.
On 22 April 2020 the contract with Investec was completed and
Thruvision Group Plc recorded a GBP0.2m increase in its cash
balances on that date.
The overall cash outflow of GBP1.0 million for the year ended 31
March 2020 was in line with the operating loss of the business, as
good working capital management ensured that the growth in revenue
had minimal impact on cash reserves being tied up in working
capital. Stock value at 31 March 2020 was GBP3.7 million (2019:
GBP3.3 million) which was somewhat higher than planned and in part
due to a delay in several orders closing in March as a result of
the COVID-19 pandemic.
Currency Impact
The Group generated foreign currency exchange gains during the
period of GBP0.3 million (2019: GBP0.2 million), principally due to
the above FX forward transaction converting excess USD into GBP
shortly before the year end generating a gain of GBP0.2 million.
These gains are split within the Income Statement between
Administration costs and Finance Income.
Consolidated income statement
for the year ended 31 March 2020
Year ended Year ended
31 March 31 March
2020 2019
Notes GBP'000 GBP'000
Continuing operations
Revenue 2 8,002 5,981
Cost of sales (4,242) (3,654)
------------------------------------------------------ ----- ---------- ----------
Gross profit 3,760 2,327
Administration costs (5,489) (4,440)
Other income - 5
------------------------------------------------------ ----- ---------- ----------
Operating loss 3 (1,729) (2,108)
Finance income 5 253 78
Finance costs (26) (30)
------------------------------------------------------ ----- ---------- ----------
Loss before tax (1,502) (2,060)
Income tax 223 23
------------------------------------------------------ ----- ---------- ----------
Loss for the period / year from continuing operations (1,279) (2,037)
------------------------------------------------------ ----- ---------- ----------
Discontinued operations
Profit/(loss) from discontinued operations after
tax 12 189 (233)
------------------------------------------------------ ----- ---------- ----------
Loss for the year (1,090) (2,270)
------------------------------------------------------ ----- ---------- ----------
Adjusted loss: 4
Loss before tax from continuing operations (1,502) (2,060)
Share-based payment 4 297 207
Share buyback costs 4 - 119
------------------------------------------------------ ----- ---------- ----------
Adjusted loss before tax for the year from continuing
operations (1,205) (1,734)
------------------------------------------------------ ----- ---------- ----------
Loss per share - continuing operations
Loss per share - basic 6 (0.88p) (1.33p)
Loss per share - diluted 6 (0.88p) (1.33p)
Loss per share - continuing and discontinued
operations
Loss per share - basic 6 (0.75p) (1.49p)
Loss per share - diluted 6 (0.75p) (1.49p)
------------------------------------------------------ ----- ---------- ----------
Consolidated statement of comprehensive income
for the year ended 31 March 2020
Year ended Year ended
31 March 31 March
2020 2019
GBP'000 GBP'000
-------------------------------------------------------- ---------- ----------
Loss for the year from continuing operations (1,279) (2,037)
-------------------------------------------------------- ---------- ----------
Profit/(loss) for the year from discontinued operations 189 (233)
-------------------------------------------------------- ---------- ----------
Loss for the year attributable to owners of the parent (1,090) (2,270)
-------------------------------------------------------- ---------- ----------
Other comprehensive income/(loss) from continuing
operations
-------------------------------------------------------- ---------- ----------
Exchange differences on retranslation of foreign
operations - continuing 101 6
-------------------------------------------------------- ---------- ----------
Net other comprehensive income to be reclassified
to profit or loss in subsequent periods 101 6
-------------------------------------------------------- ---------- ----------
Total comprehensive loss attributable to owners of
the parent (989) (2,264)
-------------------------------------------------------- ---------- ----------
Consolidated statement of financial position
at 31 March 2020
31 March 31 March
2020 2019
Notes GBP'000 GBP'000
Assets
Non current assets
Property, plant and equipment 1,238 760
Intangible assets 62 7
------------------------------------- ----- -------- --------
1,300 767
------------------------------------- ----- -------- --------
Current assets
Inventories 3,671 3,349
Trade and other receivables 7 2,221 2,690
Derivative financial instrument 203 -
Current tax recoverable 296 114
Cash and cash equivalents 8,431 9,375
------------------------------------- ----- -------- --------
14,822 15,528
------------------------------------- ----- -------- --------
Total assets 16,122 16,295
------------------------------------- ----- -------- --------
Equity and liabilities
Attributable to owners of the parent
Equity share capital 9 1,455 1,618
Share premium - -
Capital redemption reserve 163 -
Translation reserve 115 14
Retained earnings 11,652 12,445
------------------------------------- ----- -------- --------
Total equity 13,385 14,077
------------------------------------- ----- -------- --------
Non current liabilities
Other payables 305 -
Provisions 38 38
343 38
------------------------------------- ----- -------- --------
Current liabilities
------------------------------------- ----- -------- --------
Trade and other payables 8 2,394 2,180
Total liabilities 2,737 2,218
------------------------------------- ----- -------- --------
Total equity and liabilities 16,122 16,295
------------------------------------- ----- -------- --------
Consolidated statement of changes in equity
for the year ended 31 March 2020
Ordinary Share Capital
share premium redemption Translation Retained Total
capital account reserve reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------- -------- --------- ----------- ----------- --------- --------
At 31 March 2018 1,814 109,078 4,786 8 (96,207) 19,479
------------------------- -------- --------- ----------- ----------- --------- --------
Capital redemption - (109,078) (4,786) - 113,864 -
Share buyback (196) - - - (3,149) (3,345)
Share-based payment
credit - - - - 207 207
------------------------- -------- --------- ----------- ----------- --------- --------
Transactions with
shareholders (196) (109,078) (4,786) - 110,922 (3,138)
------------------------- -------- --------- ----------- ----------- --------- --------
Gain/(loss) for the
year - - - - (2,270) (2,270)
Other comprehensive
gain/(loss) - - - 6 - 6
------------------------- -------- --------- ----------- ----------- --------- --------
Total comprehensive
gain/(loss) - - - 6 (2,270) (2,264)
------------------------- -------- --------- ----------- ----------- --------- --------
At 31 March 2019 1,618 - - 14 12,445 14,077
------------------------- -------- --------- ----------- ----------- --------- --------
Cancellation of deferred
shares (163) - 163 - - -
Share-based payment
credit - - - - 297 297
------------------------- -------- --------- ----------- ----------- --------- --------
Transactions with
shareholders (163) - 163 - 297 297
------------------------- -------- --------- ----------- ----------- --------- --------
Gain/(loss) for the
year - - - - (1,090) (1,090)
Other comprehensive
gain/(loss) - - - 101 - 101
------------------------- -------- --------- ----------- ----------- --------- --------
Total comprehensive
gain/(loss) - - - 101 (1,090) (989)
------------------------- -------- --------- ----------- ----------- --------- --------
At 31 March 2020 1,455 - 163 115 11,652 13,385
------------------------- -------- --------- ----------- ----------- --------- --------
Consolidated statement of cash flows
for the year ended 31 March 2020
Year ended Year ended
31 March 31 March
2020 2019
GBP'000 GBP'000
------------------------------------------------------ ---------- ----------
Operating activities
Loss before tax from continuing operations (1,502) (2,060)
Profit/(loss) before tax from discontinued operations 189 (233)
------------------------------------------------------- ---------- ----------
Loss before tax (1,313) (2,293)
------------------------------------------------------- ---------- ----------
Non-cash adjustment to reconcile loss before
tax to net cash flows
Depreciation of property, plant and equipment 444 179
Amortisation of intangible assets 7 2
Leasing obligation repayments (previously in
administration costs) (186) -
Share-based payment transaction expense 297 207
Unrealised gains on foreign exchange 48 (25)
Disposal of fixed assets 42 28
Finance income (50) (78)
Finance costs 26 30
Working capital adjustments:
Increase in trade and other receivables (21) (1,724)
Increase in inventories (322) (1,536)
Increase in trade and other payables (123) 545
Increase in deferred revenue 185 156
Decrease in provisions - (27)
------------------------------------------------------- ---------- ----------
Cash utilised in operations (966) (4,536)
Net tax receipts 56 -
------------------------------------------------------- ---------- ----------
Net cash flow from operating activities (910) (4,536)
------------------------------------------------------- ---------- ----------
Investing activities
Purchase of property, plant & equipment (340) (579)
Expenditure on intangible assets (62) (7)
Interest received 50 78
Deferred consideration from disposal of Video
Business 265 182
------------------------------------------------------- ---------- ----------
Net cash flow from investing activities (87) (326)
------------------------------------------------------- ---------- ----------
Financing activities
Share buyback - reduction in share capital - (3,345)
Net cash flow from financing activities - (3,345)
------------------------------------------------------- ---------- ----------
Net (decrease)/increase in cash and cash equivalents (997) (8,207)
Cash and cash equivalents at the beginning of
the year 9,375 17,587
Effect of foreign exchange rate changes on cash
and cash equivalents 53 (5)
Cash and cash equivalents at end of year 8,431 9,375
------------------------------------------------------- ---------- ----------
Notes to the financial information
1. Accounting policies
Basis of preparation
The principle financial policies of the Group are set out in the
Group's 2019 annual report and financial statements. One new
standard became effective from 1 April 2019:
-- IFRS 16 Leases, which replaced IAS 17.
As permitted by the standard the group applied IFRS 16 on a
modified retrospective basis without restating prior years.
The impact of adopting IFRS 16 on 1 April 2019 resulted in an
increase in right of use assets of GBP623k, and an increase in
lease liabilities of GBP623k. As at 31 March 2020 the NBV value of
right of use assets within Fixed assets was GBP461k with a
corresponding liability of GBP457k.
The adoption of IFRS 16 has also had a timing effect on how we
have recognised the cost of leases in our income statement which
has resulted in FY20 costs not being directly comparable to
FY19.
Full disclosure of the transition will be included in the 2020
Financial Statements, but the Company has not identified any
changes to its accounting policies that require retrospective
adjustment.
All values are rounded to GBP'000 except where otherwise
stated.
The Company is a public limited company incorporated and
domiciled in England and Wales and whose shares are quoted on AIM,
a market operated by the London Stock Exchange.
Going Concern
The Group's loss before tax from continuing operations for the
period was GBP1.5 million (2019: GBP2.1 million). As at 31 March
2020 the Group had net current assets of GBP12.3 million (31 March
2019: GBP13.3 million) and net cash reserves of GBP8.4 million (31
March 2019: GBP9.4 million).
The Board has reviewed various cash flow forecast scenario for
the period up to and including 30 June 2021 all of which show a
positive cash position and no need for the Group to take on any
debt. In addition to this the Board reviewed cash forecasts in
March assuming the worst-case scenarios where no sales were made
for twelve months, with stock purchases dramatically reduced to
only committed orders, and other worst-case scenarios including
trade receivables recoverability. These forecasts, updated for
events occurring since the year end, showed that the Group would
still have cGBP3m cash at 30 June 2021. Following from this
forecast, further sales as well as cash has been received, meaning
that this worst-case scenario is no longer plausible. These
forecasts and projections take into account the potential impact
that the Covid-19 pandemic may have for at least the next six to
twelve months of trading performance and show that the Group will
be able to operate within the level of current funding resources.
The Directors therefore believe there is sufficient cash available
to the Group to manage through these requirements.
As with all businesses, there are particular times of the year
where the Group's working capital requirements are at their peak.
The Group is well placed to manage business risk effectively and
the Board reviews the Group's performance against budgets and
forecasts on a regular basis to ensure action is taken where
needed.
The Directors therefore are satisfied that the Group has
adequate resources to continue operating for a period of at least
12 months from the approval of these accounts. For this reason,
they have adopted the going concern basis in preparing the
financial statements.
2. Segmental information
The directors do not split the business into segments in order
to internally analyse the business performance and as a result the
results of the business are only presented below as continuing and
discontinued. The directors believe that allocating overheads by
department provides a suitable level of business insight. The
overhead department cost centers comprise of:
-- engineering (manufacturing and R&D)
-- sales and marketing,
-- property and administration,
-- management
-- plc costs
Following its disposal on 31 October 2017 the Video Business has
been reported as a discontinued operation. The profit disclosed
this year within discontinued operations includes further amounts
due on deferred consideration as part of the Share Purchase
Agreement on the sale of the Video Business. Further details are
provided in note 12.
In accordance with IFRS 8, the Group has derived the information
for its operating segments using the information used by the Chief
Operating Decision Maker and supplemented this with additional
analysis to assist readers of the Annual Report to better
understand the impact of the Group's current trading performance.
The Group has identified the Board of Directors as the Chief
Operating Decision Maker as it is responsible for the allocation of
resources to operating segments and assessing their
performance.
Video Business Thruvision
Discontinued Continuing Total
Year ended 31 March 2020 GBP'000 GBP'000 GBP'000
------------------------------------------- -------------- ----------- --------
Revenue - 8,002 8,002
------------------------------------------- -------------- ----------- --------
Depreciation and amortisation - 444 444
------------------------------------------- -------------- ----------- --------
Segment adjusted operating profit/(loss) 189 (1,432) (1,243)
------------------------------------------- -------------- ----------- --------
Share based payment charge - (297) (297)
------------------------------------------- -------------- ----------- --------
Segment operating profit/(loss) 189 (1,729) (1,540)
------------------------------------------- -------------- ----------- --------
Finance income - 253 50
Finance costs - (26) (26)
------------------------------------------- -------------- ----------- --------
Segment profit/(loss) before tax 189 (1,502) (1,313)
------------------------------------------- -------------- ----------- --------
Income tax (charge)/credit - 223 223
------------------------------------------- -------------- ----------- --------
Profit/(loss) for the year from continuing
operations 189 (1,279) (1,090)
------------------------------------------- -------------- ----------- --------
2. Segmental information (continued)
Video Business Thruvision
Discontinued Continuing Total
Year ended 31 March 2019 GBP'000 GBP'000 GBP'000
--------------------------------------------- -------------- ----------- --------
Revenue - 5,981 5,981
--------------------------------------------- -------------- ----------- --------
Depreciation and amortisation - 181 181
--------------------------------------------- -------------- ----------- --------
Segment adjusted operating (loss) (233) (1,901) (2,134)
--------------------------------------------- -------------- ----------- --------
Share based payment charge - (207) (207)
--------------------------------------------- -------------- ----------- --------
Segment operating (loss) (233) (2,108) (2,341)
--------------------------------------------- -------------- ----------- --------
Finance income - 78 78
Finance costs - (30) (30)
--------------------------------------------- -------------- ----------- --------
Segment (loss) before tax (233) (2,060) (2,293)
--------------------------------------------- -------------- ----------- --------
Income tax (charge)/credit - 23 23
--------------------------------------------- -------------- ----------- --------
Loss for the year from continuing operations (233) (2,037) (2,270)
--------------------------------------------- -------------- ----------- --------
Analysis of revenue by customer
There have been five (2019: two) individually material customers
(comprising over 10% of total revenue) in the year. These customers
individually represented GBP2,227,000, GBP1,397,000, GBP1,359,000,
GBP965,000 and GBP897,000 of revenue for the year (2019:
GBP2,310,000 and GBP808,000).
Other segment information
The following tables provides disclosure of the Group's
continuing and discontinued revenue analysed by geographical market
based on the location of the customer.
The Group's Revenue by geographical area are detailed below:
2020 2019
GBP'000 GBP'000
----------------------- -------- --------
UK and Europe 1,234 1,338
Americas 4,311 975
Asia-Pacific 2,430 3,640
Middle East and Africa 27 28
8,002 5,981
----------------------- -------- --------
The Group's non-current assets by geography are detailed
below:
2020 2019
GBP'000 GBP'000
------------------------- -------- --------
United Kingdom 1,127 737
United States of America 173 30
------------------------- -------- --------
1,300 767
------------------------- -------- --------
3. Group operating loss
The Group operating loss attributable to continuing operations
is stated after charging/(crediting):
2020 2019
GBP'000 GBP'000
------------------------------------------------------- -------- --------
Operating lease rentals - land and buildings * - 152
Research and development costs 549 429
Bad debt expense - 12
Depreciation of property, plant and equipment 437 179
Amortisation of intangible assets initially recognised
on acquisition 7 2
Exchange gains (88) (163)
------------------------------------------------------- -------- --------
* Due to a change in accounting policy effective 1 April 2019,
property and motor vehicle long term leases are accounted for under
IFRS 16 Leases.
Auditors' remuneration
The following table shows an analysis of all fees payable to
Grant Thornton UK LLP, the Group's auditors:
2020 2019
GBP'000 GBP'000
Audit services
Fees payable to the Company's auditor for the
audit of the financial statements 37 42
The audit of the Company's subsidiaries 20 17
---------------------------------------------- -------- --------
57 59
---------------------------------------------- -------- --------
Non-audit services
Tax advisory services 19 61
Other non-audit services 7 9
---------------------------------------------- -------- --------
26 70
---------------------------------------------- -------- --------
Fees relate to all activities undertaken by Grant Thornton UK
LLP (2019: Grant Thornton UK LLP) in the period, covering
continuing and discontinued operations.
4. Adjusted loss before tax
An adjusted loss before tax measure has been presented as the
Directors believe that this is a better measure of the Group's
underlying performance. Adjusted loss is not defined under IFRS and
has been shown as the Directors consider this to be helpful for a
better understanding of the performance of the Group's underlying
business. It may not be comparable with similarly titled
measurements reported by other companies and is not intended to be
a substitute for, or superior to, IFRS measures of profit. The net
adjustments to loss before tax from continuing operations are
summarised below:
2020 2019
GBP'000 GBP'000
Share based payment (i) 297 207
Share buyback costs (ii) - 119
------------------------- -------- --------
Total adjustments 297 326
------------------------- -------- --------
(i) The performance condition associated with LTIP awards made
in January 2019 are subject to a non-market based performance
measure. Accordingly, should these LTIP awards fail to vest, the
share-based payment charge will be added back to the income
statement. To date the majority of historic LTIP awards have failed
to vest. The inclusion provides consistency over time allowing a
better understanding of the financial position of the Group.
(ii) Share buyback costs incurred represent additional legal and
professional fees incurred as a result of the share buyback carried
out in August 2018.
5. Finance income
2020 2019
GBP'000 GBP'000
------------------------------------------------ -------- --------
Gain on forward contract measured at fair value
through income statement 203 -
Bank interest receivable 50 78
------------------------------------------------ -------- --------
253 78
------------------------------------------------ -------- --------
6. Loss per share
Unadjusted loss per share
Year ended Year ended
31 March 31 March
2020 2019
GBP'000 GBP'000
------------------------------------------------- ----------- -----------
Loss from continuing operations attributable to
ordinary shareholders (1,279) (2,037)
------------------------------------------------- ----------- -----------
Loss from continuing and discontinued operations
attributable to ordinary shareholders (1,090) (2,270)
------------------------------------------------- ----------- -----------
Weighted average number of shares 145,454,118 152,839,321
------------------------------------------------- ----------- -----------
Basic and diluted loss per share - continuing
operations (0.88p) (1.33p)
------------------------------------------------- ----------- -----------
Basic and diluted loss per share - continuing
and discontinued operations (0.75p) (1.49p)
------------------------------------------------- ----------- -----------
Adjusted loss per share
Year ended Year ended
31 March 31 March
2020 2019
GBP'000 GBP'000
--------------------------------------------------- ----------- -----------
Loss from continuing operations attributable to
ordinary shareholders (1,279) (2,037)
--------------------------------------------------- ----------- -----------
Share-based payment 297 207
--------------------------------------------------- ----------- -----------
Financing set up fees - 119
--------------------------------------------------- ----------- -----------
Adjusted (loss)/profit after tax (982) (1,711)
--------------------------------------------------- ----------- -----------
Weighted average number of shares 145,454,118 152,839,321
--------------------------------------------------- ----------- -----------
Basic and diluted loss per share (0.88p) (1.33p)
--------------------------------------------------- ----------- -----------
Basic and diluted adjusted (loss)/profit per share (0.68p) (1.12p)
--------------------------------------------------- ----------- -----------
7. Trade and other receivables
Gross carrying Provision Net carrying Gross carrying Provision Net carrying
amounts for impairment amounts amounts for impairment amounts
2020 2020 2020 2019 2019 2019
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------- -------------- --------------- ------------ -------------- --------------- ------------
Trade receivables 2,102 - 2,102 2,262 - 2,262
Prepayments 93 - 93 158 - 158
Accrued income - - - 1 - 1
VAT recoverable - - - 87 - 87
Deferred consideration - - - 123 - 123
Other receivables 26 - 26 59 - 59
----------------------- -------------- --------------- ------------ -------------- --------------- ------------
2,221 - 2,221 2,690 - 2,690
----------------------- -------------- --------------- ------------ -------------- --------------- ------------
Trade receivables
The Group's credit risk on trade and other receivables is
primarily attributable to one receivable. One customer represents
GBP1,754,000 of the Group's trade receivables at 31 March 2020
(2019: one customer GBP1,608,000). There is no other significant
concentration of credit risk.
The Group believes that the carrying amounts of the Group's
trade receivables by the type of customer gives a fair presentation
of the credit quality of the assets:
2020 2019
GBP'000 GBP'000
--------------------- -------- --------
Government customers 27 200
Commercial customers 2,075 2,062
--------------------- -------- --------
2,102 2,262
--------------------- -------- --------
Trade receivables, net of an allowance of GBPnil (2019: GBPnil)
for doubtful debts, are aged as follows:
2020 2019
GBP'000 GBP'000
---------------------------------------------------- -------- --------
Within credit terms 1,907 2,081
Not more than three months past due 6 32
More than three months but not more than six months
past due 21 147
More than six months past due 168 2
---------------------------------------------------- -------- --------
2,102 2,262
---------------------------------------------------- -------- --------
8. Trade and other payables
2020 2019
GBP'000 GBP'000
-------------------------------- -------- --------
Current
Trade payables 877 1,240
Accruals 789 586
Deferred income 447 262
Social security and other taxes 75 72
VAT payable 39 -
Right of use lease liabilities 152 -
Other payables 15 20
-------------------------------- -------- --------
2,394 2,180
-------------------------------- -------- --------
At 31 March 2020 the amount owing on secured creditors was
GBPnil (31 March 2019: GBPnil).
9. Share capital
Number GBP'000
----------------------------------------------- ------------ -------
Authorised, allotted, called-up and fully paid
Ordinary Shares of 1 pence each
At 31 March 2018 165,130,024 1,651
----------------------------------------------- ------------ -------
Share buyback (1) (19,675,906) (196)
----------------------------------------------- ------------ -------
At 31 March 2019 and 31 March 2020 145,454,118 1,455
----------------------------------------------- ------------ -------
Number GBP'000
----------------------------------------------- --------- -------
Authorised, allotted, called-up and fully paid
Deferred Shares of GBP1 each
----------------------------------------------- --------- -------
At 31 March 2018 and 31 March 2019 163,124 163
----------------------------------------------- --------- -------
Cancellation of deferred shares (2) (163,124) (163)
----------------------------------------------- --------- -------
At 31 March 2020 - -
----------------------------------------------- --------- -------
GBP'000
-------------------- -------
Total share capital
-------------------- -------
At 31 March 2019 1,618
-------------------- -------
At 31 March 2020 1,455
-------------------- -------
(1) The Board announced on 12 March 2018 to return up to GBP8.0
million to shareholders. GBP3,345k was subsequently returned to
shareholders in August 2018 at 17p per share, with 19,675,906
shares being cancelled.
(2) On 22 February 2010, 217,500 Incentive shares were issued to
three directors. Of these shares 163,124 failed to vest and were
converted to deferred shares with nominal value. Following
shareholder approval at the 2019 AGM, 163,124 deferred shares were
bought back by the Company for total consideration of GBP3 and
subsequently cancelled on 25 September 2019.
10. Related party transactions
Remuneration
The remuneration of Directors and other members of key
management, recognised in the income statement, is set out below in
aggregate. Key management are defined as the Board of Thruvision
Group plc and other persons classified as 'persons discharging
managerial responsibility' under the rules of the Financial Conduct
Authority. Currently no employees outside of the Directors are
classified as 'persons discharging managerial responsibility'.
2020 2019
GBP'000 GBP'000
------------------------ -------- --------
Directors' remuneration 481 480
Pension contributions 5 3
------------------------ -------- --------
486 483
------------------------ -------- --------
The highest paid Director received GBP235,000 (2019: GBP235,000)
in the year, with GBPnil in pensions contributions (2019: GBPnil).
Key management compensation comprises short -- term employee
benefits (including national insurance) of GBP591,000 (2019:
GBP545,000), pension contributions of GBP5,000 (2019: GBP3,000) and
share-based payments of GBP120,000 (2019: GBP84,000).
The Directors share-holding at the year-end are as detailed
below (based on the year end share price of GBP0.145 per share
(2019: GBP0.2865 per share):
2020 2019 2020 2019
No of shares No of shares GBP'000 GBP'000
------------ -------------- ------------- --------- --------
Tom Black 11,349,444 11,349,444 1,645 3,252
Colin Evans 2,423,900 2,423,900 351 694
Paul Taylor 272,489 272,489 40 78
------------ -------------- ------------- --------- --------
11. Post balance sheet event
The Group has no post balance sheet events.
12. Profit/(loss) from discontinued operations
Video Business
On 7 October 2017 the Board signed an agreement for the disposal
of the Video Business segment to Volpi Capital LLP for a maximum
consideration payable of GBP27.5 million in cash of which GBP25.5
million was payable on completion (on a cash free/debt free basis)
and the remaining GBP2.0 million payable subject to the Video
Business securing a specific trading contract within 12 months
following completion. Further amounts have become payable in the
year ended 31 March 2019 as a result of sales of a specific
category of inventory. As more than twelve months have passed since
the deferred consideration balance was reduced to GBPnil, further
assessments are no longer considered necessary.
Costs included in 2019 included an amount due under warranties
as part of the Video Business sale which was not known at the point
of signing the FY18 accounts, as well as a reassessment of the
likely amount due in deferred consideration.
The sale completed on 31 October 2017, with the following being
attributable to the disposal group:
12. Profit/(loss) from discontinued operations (continued)
Discontinued Operations - Income statement
2020 2019
GBP'000 GBP'000
------------------------------------------------------ -------- --------
Contingent consideration received (sale of inventory) 265 -
Loss on disposal and exit costs (31) (233)
Profit/(loss) before tax attributable to Digital
Barriers discontinued operation 234 (233)
------------------------------------------------------ -------- --------
Income tax credit/(expense) - -
------------------------------------------------------ -------- --------
Loss after tax attributable to Digital Barriers
discontinued operation 234 (233)
------------------------------------------------------ -------- --------
Closure of Australasia Office (45) -
------------------------------------------------------- ---- -----
Loss after tax attributable to discontinued operations 189 (233)
------------------------------------------------------- ---- -----
No tax arises on disposal income or expenditure.
Cash flows
Cash flows attributable to the disposal group include:
2020 2019
GBP'000 GBP'000
---------------------------------------------------- -------- --------
Net cash flows attributable to operating activities (31) (138)
Net cash flows attributable to investing activities 265 182
Net cash flows attributable to financing activities - -
---------------------------------------------------- -------- --------
Cash flows from discontinued operations 234 (44)
---------------------------------------------------- -------- --------
13. Publication of non-statutory accounts
The above does not constitute statutory accounts within the
meaning of the Companies Act 2006. It is an extract from the full
accounts for the year ended 31 March 2020 on which the auditor has
expressed an unmodified opinion and does not include any statement
under section 498 of the Companies Act 2006. The accounts will be
posted to shareholders on or before 30 June 2020 and subsequently
filed at Companies House.
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
FR FRMMTMTJMTFM
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June 08, 2020 02:00 ET (06:00 GMT)
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