TIDMTHRU
RNS Number : 0389T
Thruvision Group PLC
22 November 2021
22 November 2021
Thruvision Group plc
(" Thruvision " or the " Group ")
Interim Results for the six months ended 30 September 2021
Thruvision (AIM: THRU), the specialist provider of 'safe
distance' people-screening technology to the international security
market, announces its unaudited results for the six months ended 30
September 2021 .
Key Highlights
-- Revenue for the six months ended 30 September 2021 was GBP2.0
million (H1 2021: GBP4.7 million).
-- Trading since 30 September has strengthened significantly and
confidence about H2 trading is strong.
-- Profit Protection revenue grew by 50% to GBP1.0 million in
the first half (H1 2021: GBP0.65 million) and a further GBP1.7
million of orders have since been received.
-- Since the end of H1 we have received a major order from Tesco,
the leading UK retailer, following its decision to deploy Thruvision
at scale across its UK distribution network.
-- Last year's large H1 sale to US Customs and Border Protection
(CBP) was not repeated this year but strong engagement during
H1 supports confidence of expected order-flow in H2.
-- Transportation Security Administration (TSA) accreditation
testing continued after the Covid-19 hiatus.
-- The Group's EBITDA loss was GBP1.6 million (H1 2021: breakeven
) and gross margin of 49% (H1 2021: 48%)
-- Cash balance at 30 September 2021 was GBP4.1 million (31 March
2021: GBP7.3 million), with cash at 19 November 2021 of GBP4.0
million.
Commenting on the results, Colin Evans, Chief Executive of
Thruvision, said:
"We have seen steadily building momentum since the spring, with
continued strong performance in our Profit Protection market in
particular. We are delighted to add Tesco to our growing list of
major users and are pleased with the increasing traction we are
seeing with retailers in Europe and the US. We have been very
active helping US Customs and Border Protection (CBP) respond to
the rapid increase in immigration levels on the southern border and
anticipate future orders as a result . We are increasingly
confident that both Profit Protection and CBP can deliver strong
growth over the short to medium term, and that we are well
positioned to benefit from the ongoing recovery in the global
aviation sector. As a result, we remain confident of achieving
growth in full year revenue and an improvement in our cash position
in H2."
For further information please contact:
Thruvision Group plc +44 (0)1235 425 400
Tom Black, Executive Chairman
Colin Evans, Chief Executive
Investec Bank plc +44 (0)20 7597 5970
Patrick Robb / James Rudd / Sebastian Lawrence
FTI Consulting LLP +44 (0)20 3727 1000
Matt Dixon / Tom Blundell
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
Half year report
for the six months ended 30 September 2021
Chairman's Statement
The Group's trading momentum has continued to build strongly
this financial year, particularly in Profit Protection, although
first half revenue of GBP2.0 million (H1 2021: GBP4.7 million, H2
2021: GBP2.0 million) was reduced due to sales slipping into early
H2 as described in the Trading Update of 7 October. Last year's H1
comparator included material revenue of GBP2.9 million from a US
CBP order which was not repeated in H1 this year although we do
anticipate further order flow from this customer in H2.
Encouragingly, we have already added a further GBP1.7 million of
Profit Protection orders since the end of September.
Profit Protection revenue grew by 50% over H1 and, as with
previous periods, this growth continues to come from both existing
customers, including ASOS, JD Sports and Next as they open new
distribution centre capacity, and from new customers attracted by
our success at existing installations. We are particularly pleased
that since the end of H1, Tesco has become the latest major UK
retailer to invest in a substantial rollout following a pilot
programme that demonstrated a strong return on investment. We are
encouraged by progress in both the US and Europe where we have
invested in further sales capacity in the last six months. This
progress has convinced us that our Profit Protection revenues are
now set on a long-term growth path.
In our Customs segment, the absence of CBP orders in H1 reduced
our headline revenue, but we are increasingly confident about the
scale of the opportunity with this important customer. With growing
immigration pressure on the US southern border, many of our
existing installed units have been redeployed to meet this
challenge and we have worked closely with CBP to effect this. This
close engagement has revealed the significant value our solution
provides, and we are increasingly confident of a further
significant expansion of Thruvision deployments by CBP over the
next year.
In our third key market, Aviation, traffic levels are starting
to recover, and we continue to progress through the TSA
accreditation process. Although this has been a slow and often
frustrating process, contactless security remains a priority for
the global aviation industry, and we remain well placed to meet
this need when accredited and as the global aviation industry
recovers.
Thanks to the hard work and determination of our staff, the
business has come through the pandemic well, albeit with our growth
trajectory delayed, and we are now confident that the worst effects
of Covid-19 are behind us. Our other major recent concern relates
to the well-publicised supply chain issues disrupting much of
industry and our team has worked hard to mitigate its impact on our
business. I am pleased to report that our supplies of essential
components have been largely protected and that our key supplier
relationships remain very strong.
Outlook
With Profit Protection performing strongly, growing confidence
about our strategic prospects with CBP and continued improvements
in broader international market conditions, we remain confident of
achieving growth in full year revenue and an improvement in our
cash position in H2 as the business returns to its pre-pandemic
growth trajectory .
Strategic Update
Thruvision addresses the growing international need to safely,
quickly and comprehensively security screen individuals for
weapons, contraband or other illicit items that might be concealed
in their clothing. As reported previously, the pandemic has seen
many organisations look to replace metal detectors and airport body
scanners given they both require physical contact between security
guards and individuals to resolve alarms. By operating at a
physically distant range of several metres, Thruvision cameras
completely remove the need for physical searches.
With this important differentiator and our growing flagship
customer list, we believe we have now established ourselves in the
mainstream international security market. Our Profit Protection
market in the UK, US and Europe is recovering strongly from
Covid-19, international customs agencies are very active again as
borders reopen, and the recovery of the global aviation industry is
now underway.
Business Review
Profit Protection
Our Profit Protection market continues to be driven by the rapid
growth in online retailing and home delivery services. Theft by
employees in distribution centres of easy-to-conceal, high value
items such as fashion apparel, cosmetics, electronics, alcohol and
tobacco continues to be a significant problem which many retailers
struggle to address.
Order-flow has steadily picked up since the end of the spring
lockdown in the UK. Against full year Profit Protection revenue of
GBP2.0 million in FY 2021, we recorded GBP1.0 million of revenue in
the first half and have added GBP1.7 million of new orders since
the end of September. This performance has come from a number of
customers including Next, Boots, JD Sports, ASOS, THG, Clipper and
CEVA either adding units to new or upgraded distribution centres or
upgrading old Thruvision models to our latest LPC product family,
designed specifically for the Profit Protection market. We are
particularly pleased that since the end of H1 Tesco has become the
latest major UK retailer to invest in a substantial rollout
following an initial pilot programme that demonstrated a strong
return on investment.
In addition to the UK, we have installed units in The
Netherlands, Germany, Ireland, Poland and the US in the period and
our new sales teams covering Eastern Europe, Western Europe and the
US are making excellent progress in building the broader sales
pipeline.
Half year report (continued)
for the six months ended 30 September 2021
Customs
This is a well-established Thruvision market, where our ability
to detect predominantly non-metallic, prohibited items such as cash
and drugs at all types of border checkpoint means we have no direct
competition. We have equipment in service with nine international
customs agencies, but CBP represents, by some distance, our single
largest opportunity in this market.
Although we did not receive any orders from CBP in the first
half (H1 2021: CBP order value GBP3.8 million), the Chief Privacy
Officer for US Department of Homeland Security approved
Thruvision's operational use by CBP and we have trained over 700
officers in the last few months. We have partnered with one of
CBP's major equipment providers and as a result have made the
Thruvision product range available for purchase via the US
Government Services Administration (GSA) purchasing portal. Given
the mounting pressure on the southern border with Mexico in
particular, we are seeing strong operational demand for further
units, and we are increasingly confident that we will see further
significant order-flow from CBP, via our chosen partner in this
area, in H2 and beyond.
Our interactions with a number of other customs agencies in
Asia, the Gulf, and UK Border Force have increased as borders have
re-opened, and we therefore foresee a growing opportunity in the
broader customs market beyond CBP.
Aviation
Global aviation is starting to recover as governments and
airline operators establish various Covid-19 management protocols,
with the reopening of UK / US travel the latest example. Our
primary focus remains moving through the TSA accreditation process
where slow but positive progress has been made. We are seeing a
pick-up in enquiry rates from airlines and airports both in the US
and the UK where our contactless detection capability is recognised
as a key differentiator. We expect "Detection at Range" (as
described by TSA) to become a formalised equipment category,
alongside existing airport body scanners and metal detections, in
due course.
Other
The entrance security and surface transportation markets remain
a lower priority for us at this time. Nevertheless, a number of
recent, fatal workplace shootings in the US have resulted in some
of our retail customer prospects also expressing interest in our
products enabling "dual-use" deployments covering both outgoing
theft and incoming firearms detection.
We have also seen increasing interest and some early sales into
two new niche markets. In the Prisons market, we have sold units to
both Australia and The Netherlands where authorities are aiming to
use our technology to disrupt the flow of contraband within
prisons. Within the natural resources sector, we are seeing
interest from mining and mineral processing businesses which are
concerned about the theft of a range of items including precious
metals and blasting explosives. In both these markets, no other
technology provides the detection performance and flexibility of
deployment that Thruvision can achieve.
Product Range
We launched fully our extended product range during the early
part of H1. Using our modular hardware architecture, we are now
using different software functionality to meet the specific needs
of each of our different markets. We have recently launched our
AI-based "Dynamic Detection" algorithm, developed to meet aviation
accreditation requirements, to the Profit Protection market. This
will enable faster employee screening which will, in many cases,
strengthen the business case to invest in Thruvision
technology.
Manufacturing
Our manufacturing capability remains robust, and our principal
suppliers have traded well through the pandemic. We are only seeing
supply-chain issues in generic components such as power supplies
and PCs, which we have been able to manage effectively to date. It
remains our intention to assemble products for the US market in
that country and, with modest further investment in manufacturing
capacity, we expect to complete the outsourcing of US assembly and
test of our cameras to our Florida-based partner in the remainder
of this year. This will have the added benefit of scaling-up our
production capacity and our business resilience.
People
Overall headcount remained constant at 42 during the period as
the Group reduced administrative support but strengthened its US
team and grew the Profit Protection sales team in Europe. We also
added a new VP Software to continue to develop our product range
through further software innovation.
Half year report (continued)
for the six months ended 30 September 2021
Financial review
Financial results
During the six months ended 30 September 2021, revenues were
GBP2.0 million (H1 2021: GBP4.7 million, FY 2021: GBP6.7 million).
H1 2021 contained a single order from US Customs and Border
Protection (CBP) resulting in revenue of GBP2.9 million in the
period which did not recur in H1 2022, although further orders from
CBP are anticipated in H2 2022 Gross margin increased slightly from
the prior period to 49% (H1 2021: 48%, FY 2021: 48%), where the mix
of units sold, and unit pricing were similar.
The Group EBITDA loss was GBP1.6 million (H1 2021: breakeven, FY
2021 loss of GBP1.5 million). Operating loss in the period was
GBP2.0 million (H1 2021: loss of GBP0.5 million), FY 2021: loss of
GBP2.8 million).
Cash at 30 September 2021 was GBP4.1 million (31 March 2021:
GBP7.3 million), with cash at 19 November 2021 of GBP4.0 million.
Some GBP0.8 million of this reduction in cash during H1 relates to
increases in our stock balance to support expected orders in
H2.
Financial summary
6 months 6 months 12 months
ended ended ended
30-Sep-21 30-Sep-20 31-Mar-21
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
-------------------------------------------- ---------- ---------- ----------
Revenue 1,962 4,653 6,700
Cost of sales (1,001) (2,397) (3,486)
-------------------------------------------- ---------- ---------- ----------
Gross Profit 961 2,256 3,214
-------------------------------------------- ---------- ---------- ----------
EBITDA (1,580) 12 (1,501)
-------------------------------------------- ---------- ---------- ----------
Depreciation and amortisation (285) (245) (518)
Share based payments (LTIP) (138) (177) (409)
FX gains/(losses) (1) (92) (329)
(2,757
Operating profit / (loss) (2,004) (502) )
-------------------------------------------- ---------- ---------- ----------
Finance revenue 10 11 22
Finance costs (7) (11) (21)
-------------------------------------------- ---------- ---------- ----------
Profit / (Loss) before tax (2,001) (502) (2,756)
-------------------------------------------- ---------- ---------- ----------
Income tax 87 108 266
-------------------------------------------- ---------- ---------- ----------
Profit / (Loss) for the period / year from
continuing operations (1,914) (394) (2,490)
-------------------------------------------- ---------- ---------- ----------
Discontinued operations
-------------------------------------------- ---------- ---------- ----------
Profit/(loss) from discontinued operations
(net of tax) (33) 41 2
-------------------------------------------- ---------- ---------- ----------
Profit / (Loss) for the period / year (1,947) (353) (2,488)
-------------------------------------------- ---------- ---------- ----------
Half year report (continued)
for the six months ended 30 September 2021
Key Performance Indicators ("KPIs")
The Group considers the following to be the relevant KPIs which
track the trading performance and position of the business.
6 months 6 months 12 months
ended ended ended
Financial KPIs 30-Sep-21 30-Sep-20 31-Mar-21
GBP'000 GBP'000 GBP'000
--------------------------------- ---------- ---------- ----------
Revenue 1,962 4,653 6,700
--------------------------------- ---------- ---------- ----------
Average revenue per unit sold * 73 72 67
--------------------------------- ---------- ---------- ----------
Gross Profit 961 2,256 3,214
--------------------------------- ---------- ---------- ----------
Gross Margin 49% 48% 48 %
--------------------------------- ---------- ---------- ----------
Overheads ** (2,827) (2,538) (5,282)
--------------------------------- ---------- ---------- ----------
(1,501
EBITDA profit / (loss) (1,580) 12 )
--------------------------------- ---------- ---------- ----------
* Average revenue per unit has been recalculated from the
figures presented in previous financial periods. The above
comparative data now excludes warranty and support revenue which is
separately analysed out below.
** Overheads exclude the share-based payment charge as well as
foreign exchange gains and losses. See Overheads table on page 6
for further detail.
Non-financial KPIs 6 months 6 months 12 months
30-Sep-21 30-Sep-20 31-Mar-21
---------------------------------- ----------- ----------- -----------
No of units sold 22 58 84
Number of staff at end of period 42 39 42
---------------------------------- ----------- ----------- -----------
Revenue
Thruvision revenues were GBP2.0 million in the six months to 30
September 2021 (H1 2021: GBP4.7 million, FY 2021: GBP6.7 million).
Revenues has been split between our three principle activities
(unit sales, warranty and support revenue and research and
development revenues) as below.
Unit volumes of 22 (H1 2021: 58 units, FY 2021: 84 units) were
achieved in the period despite challenges presented by Coronavirus
and the continuing weakness in the Aviation and Customs sectors. 19
of these units were in Profit Protection (H1 2021: 11 units, FY
2021: 36 units).
Revenue 6 months 6 months 12 months
30-Sep-21 30-Sep-20 31-Mar-21
GBP'000 GBP'000 GBP'000
---------------------- ---------- ---------- ----------
Units 1,607 4,149 5,666
Warranty and support 300 349 836
Development 55 155 198
----------------------- ---------- ---------- ----------
Total 1,962 4,653 6,700
The principal growth driver for the business is unit sales and,
while we expect to continue to be awarded customer funded
development contracts, we do not expect this to form a material
proportion of revenues in the future.
Half year report (continued)
for the six months ended 30 September 2021
Gross Profit Margin
Gross margin increased marginally to 49% in the year (H1 2021:
48%, FY 2021: 48%) principally due to warranty and support revenue
making up a higher proportion of total revenue than in the
comparative periods.
Gross Margin 6 months 6 months 12 months
30-Sep-21 30-Sep-20 31-Mar-21
GBP'000 GBP'000 GBP'000
---------------- ---------- ---------- ----------
Revenue 1,962 4,653 6,700
Gross Profit 961 2,256 3,214
----------------- ---------- ---------- ----------
Gross margin % 49% 48% 48%
----------------- ---------- ---------- ----------
Administrative expenses
Overheads increased by 11.4% to GBP2.8 million compared to the
corresponding period in FY21. This was mainly due to investment to
drive growth in the US and Europe Profit Protection markets which
was partly offset by reduced international travel as a result of
the lockdown.
Sales and marketing expenditure increased by GBP163k to target
growth in our European and US profit protection markets.
Engineering costs include Manufacturing and R&D costs which
have increased as a result of additional recruitment in our
software department as we look to scale up and increase our product
offerings going forwards.
Administrative expenses 6 months 6 months 12 months
30-Sep-21 30-Sep-20 31-Mar-21
GBP'000 GBP'000 GBP'000
------------------------------- ---------- ---------- ----------
Engineering 756 688 1,403
Sales and marketing 983 820 1,718
Property and administration 224 220 469
Management 338 321 642
PLC costs 241 244 532
Depreciation and amortisation 285 245 518
------------------------------- ---------- ---------- ----------
Overheads 2,827 2,538 5,282
------------------------------- ---------- ---------- ----------
Share based payments
(LTIP) 138 177 409
Foreign exchange losses/(gains) 1 92 329
Total administration
costs 2,966 2,807 6,020
--------------------------------- ----- ----- -----
Loss from continuing operations
Losses from continuing operations in the period were (GBP1.9
million) (H1 2021: (GBP0.4 million), FY 2021: (GBP2.5 million))
including share-based payments.
Thruvision continues to invest in sales and marketing
activities, developing new markets and segments, whilst further
investing in our engineering and manufacturing capacity including
R&D.
Half year report (continued)
for the six months ended 30 September 2021.
Cash Flows
Cash and cash equivalents at 30 September 2021 were GBP4.1
million (H1 2021: GBP5.0 million, FY 2021: GBP7.3 million), with
the principal movements in the period being the loss recorded in
the period as well as the net GBP1.6 million working capital
movements as per the cashflow statement on page 12.
Movements in working capital were as follows:
-- GBP0.8 million of the reduction in cash since the start of
the period relates to increases in our stock balance to support
expected orders in Q3 2022.
-- GBP0.5 million relates to a reduction in deferred revenue balances
during the period, as revenues deferred as at 31 March 2021
was recognised as income in the period.
-- A further net GBP0.4 million relates to a net decrease in trade
payables, accruals and other creditors as well as provision
balances. Trade creditors reduced due to the timing of stock
purchases in the period.
-- A reduction in Trade receivables offset the above, showing
a decrease of GBP0.1 million in the period.
Consolidated income statement
for the six months ended 30 September 2021
6 months 6 months Year ended
ended ended
30 September 30 September 31 March
2021 2020 2021
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
---------------------------- ----- ------------- ------------- ----------------
Revenue 2 1,962 4,653 6,700
Cost of sales (1,001) (2,397) (3,486)
---------------------------- ----- ------------- ------------- ----------------
Gross profit 961 2,256 3,214
Administration costs (2,966) (2,807) (6,020)
Other income 1 49 49
Operating loss (2,004) (502) (2,757)
Finance revenue 10 11 22
Finance costs (7) (11) (21)
---------------------------- ----- ------------- ------------- ----------------
Loss before tax (2,001) (502) (2,756)
Income tax 87 108 266
---------------------------- ----- ------------- ------------- ----------------
Loss for the period /
year from continuing
operations (1,914) (394) (2,490)
---------------------------- ----- ------------- ------------- ----------------
Discontinued operations
(Loss)/profit from discontinued
operation (net of tax) (33) 41 2
Loss for the period /
year (1,947) (353) (2,488)
Adjusted loss: 3
Loss before tax from continuing
operations (2,001) (502) (2,756)
Share-based payment 138 177 409
Adjusted loss before
tax for the period /
year from continuing
operations (1,863) (325) (2,347)
----- ------------- -------------
Consolidated statement of comprehensive income
for the six months ended 30 September 2021
6 months 6 months Year ended
ended ended
30 September 30 September 31 March 2021
2021 2020
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
--------------------------------------- ------------- ------------- --------------
Loss for the period / year
from continuing operations (1,914) (394) (2,490)
Profit/(loss) for the period
/ year from discontinued operations (33) 41 2
---------------------------------------- ------------- ------------- --------------
Loss for the period /
year attributable to
owners of the parent (1,947) (353) (2,488)
Other comprehensive income/(expense)
from continuing operations
---------------------------------------- ------------- ------------- --------------
Other comprehensive income
that may be
subsequently reclassified
to profit and loss:
Exchange differences
on retranslation
of foreign operations 2 - (48)
Total comprehensive loss attributable
to owners of the parent (1,945) (353) (2,536)
---------------------------------------- ------------- ------------- --------------
Consolidated statement of financial position
at 30 September 2021
30 September 30 September 31 March 2021
2021 2020
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
------------------------------ ----- ------------- ------------- --------------
Assets
Non-current assets
Property, plant and
equipment 910 1,069 1,103
Other intangible assets 42 55 48
------------------------------ ----- ------------- ------------- --------------
952 1,124 1,151
Current assets
Inventories 5,257 3,513 4,419
Trade and other receivables 1,316 7,479 1,442
Current tax recoverable 270 219 378
Cash and cash equivalents 4,097 5,016 7,268
------------------------------ ----- ------------- ------------- --------------
10,940 16,227 13,507
------------------------------ ----- ------------- ------------- --------------
Total assets 11,892 17,351 14,658
Equity and liabilities
Attributable to owners
of the parent
Equity share capital 5 1,458 1,455 1,458
Share Premium 47 - 47
Capital redemption
reserve 163 163 163
Translation reserve 69 115 67
Retained earnings 7,769 11,476 9,578
------------------------------ ----- ------------- ------------- --------------
Total equity 9,506 13,209 11,313
------------------------------ ----- ------------- ------------- --------------
Non-current liabilities
Other payables 259 202 643
Provisions 38 38 38
297 240 681
------------------------------ ----- ------------- ------------- --------------
Current liabilities
Trade and other payables 1,849 3,733 2,489
Provisions 240 169 175
2,089 3,902 2,664
------------------------------ ----- ------------- ------------- --------------
Total liabilities 2,386 4,142 3,345
------------------------------ ----- ------------- ------------- --------------
Total equity and liabilities 11,892 17,351 14,658
------------------------------ ----- ------------- ------------- --------------
Consolidated statement of changes in equity
for the six months ended 30 September 2021
Ordinary Share Capital Translation Retained Total
share premium redemption reserve earnings equity
capital GBP'000 reserve GBP'000 GBP'000 GBP'000
GBP'000 GBP'000
---------------------- --------- --------- ------------ --------------- ------------ -----------------
At 31 March 2020 1,455 - 163 115 11,652 13,385
---------------------- --------- --------- ------------ --------------- ------------ -----------------
Share-based payment
credit - - - - 177 177
---------------------- --------- --------- ------------ --------------- ------------ -----------------
Transactions with
shareholders - - - - 177 177
---------------------- --------- --------- ------------ --------------- ------------ -----------------
Loss for the period - - - - (353) (353)
Other comprehensive - - - - - -
income
---------------------- --------- --------- ------------ --------------- ------------ -----------------
Total comprehensive
loss - - - - (353) (353)
---------------------- --------- --------- ------------ --------------- ------------ -----------------
At 30 September 2020 1,455 - 163 115 11,476 13,209
---------------------- --------- --------- ------------ --------------- ------------ -----------------
Shares issued 3 47 - - - 50
Share-based payment
credit - - - - 237 237
---------------------- --------- --------- ------------ --------------- ------------ -----------------
Transactions with
shareholders 3 47 - - 237 287
---------------------- --------- --------- ------------ --------------- ------------ -----------------
Loss for the period - - - - (2,135) (2,135)
Other comprehensive
expense - - - (48) - (48)
---------------------- --------- --------- ------------ --------------- ------------ -----------------
Total comprehensive
loss - - - (48) (2,135) (2,183)
---------------------- --------- --------- ------------ --------------- ------------ -----------------
At 31 March 2021 1,458 47 163 67 9,578 11,313
---------------------- --------- --------- ------------ --------------- ------------ -----------------
Share-based payment
credit - - - - 138 138
---------------------- --------- --------- ------------ --------------- ------------ -----------------
Transactions with
shareholders - - - - 138 138
---------------------- --------- --------- ------------ --------------- ------------ -----------------
Loss for the period - - - - (1,947) (1,947)
Other comprehensive
income - - - 2 - 2
---------------------- --------- --------- ------------ --------------- ------------ -----------------
Total comprehensive
income/(loss) - - - 2 (1,947) (1,945)
---------------------- --------- --------- ------------ --------------- ------------ -----------------
At 30 September 2021 1,458 47 163 69 7,769 9,506
---------------------- --------- --------- ------------ --------------- ------------ -----------------
Consolidated statement of cash flows
for the six months ended 30 September 2021
6 months 6 months Year ended
ended ended
30 September 30 September 31 March
2021 2020 2021
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
---------------------------------------- ------------- ------------- -----------
Operating activities
Loss before tax from continuing
operations (2,001) (502) (2,756)
Profit/(loss) before tax from
discontinued operations (33) 41 2
---------------------------------------- ------------- ------------- -----------
Loss before tax (2,034) (461) (2,754)
Non-cash adjustment to reconcile loss before
tax to net cash flows
Depreciation of property,
plant and equipment 278 238 504
Amortisation of intangible
assets 7 7 14
Share-based payment transaction
expense 138 177 409
Unrealised (losses) / gains
on foreign exchange (5) 11 5
Disposals of property, plant
& equipment 25 8 103
Finance income (10) (11) (22)
Finance costs 7 11 21
Working capital adjustments:
Decrease / (increase) in trade
and other receivables 126 (5,316) 956
Decrease / (increase) in inventories (838) 158 (748)
Increase / (decrease) in trade
and other payables (479) 110 24
Increase / (decrease) in provisions 65 - (175)
Increase / (decrease) in deferred
revenue (460) 1,380 891
Cash utilised in operations (3,180) (3,688) (772)
Tax received 197 179 179
---------------------------------------- ------------- ------------- -----------
Net cash flow from operating
activities (2,983) (3,509) (593)
---------------------------------------- ------------- ------------- -----------
Investing activities
Purchase of property, plant &
equipment (111) (78) (491)
Disposal of fixed assets - - 20
Interest received 10 11 22
Deferred consideration from disposal
of Video Business - 63 63
Net cash flow from investing
activities (101) (4) (386)
---------------------------------------- ------------- ------------- -----------
Financing activities
Proceeds from issues of shares - - 50
Lease obligation repayments (89) (86) (186)
Net cash flow from financing
activities (89) (86) (136)
---------------------------------------- ------------- ------------- -----------
Net (decrease) in cash and cash
equivalents (3,173) (3,599) (1,115)
Cash and cash equivalents at
beginning of period / year 7,268 8,431 8,431
Effect of foreign exchange rate
changes on cash and cash equivalents 2 184 (48)
---------------------------------------- ------------- ------------- -----------
Cash and cash equivalents at
end of period / year 4,097 5,016 7,268
---------------------------------------- ------------- ------------- -----------
Notes to the financial statements
for the six months ended 30 September 2021
1. Accounting policies
Basis of preparation
The consolidated interim financial statements include those of
Thruvision Group plc and all of its subsidiary undertakings
(together "the Group") drawn up at 30 September 2021 and have been
prepared in accordance with International Accounting Standard 34,
"Interim Financial Reporting" ("IAS 34") as adopted for use in the
European Union ("EU"). The consolidated interim financial
statements have been prepared using accounting policies and methods
of computation consistent with those applied in the consolidated
financial statements for the period ended 31 March 2021.
The Group is a public limited company incorporated and domiciled
in England & Wales and whose shares are quoted on AIM, a market
operated by The London Stock Exchange.
All values are rounded to GBP'000 except where otherwise
stated.
Accounting policies
The annual consolidated financial statements of the Group are
prepared on the basis of International Financial Reporting
Standards ("IFRS"). The consolidated interim financial statements
are presented on a condensed basis as permitted by IAS 34 and
therefore do not include all the disclosures that would otherwise
be required in a full set of financial statements and should be
read in conjunction with the most recent Annual Report and Accounts
which were approved by the Board of Directors on 9 July 2021 and
have been filed with Companies House. The condensed interim
financial statements do not constitute statutory accounts as
defined in Section 435 of the Companies Act 2006 and are unaudited
for all periods presented. The financial information for the
12-month period ended 31 March 2021 is extracted from the financial
statements for that period. The auditors' report on those financial
statements was unqualified and did not contain an emphasis of
matter reference and did not contain a statement under section
498(2) or (3) of the Companies Act 2006 .
The half year results for the current period to 30 September
2021 have not been audited or reviewed by auditors pursuant to the
Auditing Practices Board guidance of Review of Interim Financial
Information.
Adoption of new and revised International Financial Reporting
Standards
The Group's accounting policies have been prepared in accordance
with IFRS effective as at its reporting date of 30 September
2021.
Standards Issued
The standards and interpretations that are issued up to the date
of issuance of the Group's interim financial statements are
disclosed below. The Group has adopted these standards, if
applicable, when these became effective. Further details are
disclosed in the 31 March 2021 Annual Report available on the
Group's website: thruvision.com
Accounting developments - new standards, amendments and
interpretations issued and adopted
There were no new accounting standards or amendments requiring
disclosure in the period.
Going concern
The Group's loss before tax from continuing operations for the
period was GBP2.0 million (H1 2021: GBP0.5 million, FY 2021 GBP2.8
million). As at 30 September 2021 the Group had net current assets
of GBP8.9 million (H1 2021: GBP12.3 million, FY 2021: GBP10.8
million) and net cash reserves of GBP4.1 million (H1 2021: GBP5.0
million, FY 2021: GBP7.3 million). Additionally net cash reserves
were GBP4.0 million as at 19 November 2021.
The Board has reviewed cash flow forecasts for the period up to
and including 30 November 2022. These forecasts and projections
take into account reasonably possible changes in trading
performance and show that the Group will be able to react as
required in order to operate within the level of current funding
resources, and no need for the Group to take on any debt. In order
to stress test the adoption of the going concern basis, a cashflow
forecast was also produced which looked at the highly unlikely
scenario in which no further sales took place and certain
non-discretionary areas of cash expenditure were reduced. This
showed that even under this extreme condition, the Group would
still have positive cash reserves as at 30 November 2022 with no
need to take on external debt. 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.
However, 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.
Notes to the financial statements (continued)
for the six months ended 30 September 2021
2. Segmental information
The Directors do not split the business into segments in order
to internally analyse the business performance. The Directors
believe that allocating overheads by department provides a suitable
level of business insight. The overhead department cost centres
comprise of Engineering (manufacturing and R&D), sales and
marketing, property and administration, Management and PLC costs,
with the split of costs as shown in the Half Year Report on page
6.
Analysis of revenue by customer
There have been three (H1 2021: one, FY 2021: one) individually
material customer/s (each comprising in excess of 10% of revenue)
during the period. These customers individually represented
GBP359k, GBP206k and GBP200k of revenue (H1 2021: GBP2,917k, FY
2021: GBP3,094k).
The Group's revenue by customer's geographical location is
detailed below:
30 September 30 September 31 March
2021 2020 2021
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
------------------------ ------------- ------------- ------------
UK 941 467 1,045
Americas 693 3,599 4,501
Asia Pacific 85 100 140
Europe 92 37 428
Middle East and Africa 151 450 586
1,962 4,653 6,700
------------------------ ------------- ------------- ------------
The Group's Revenue by type is detailed below:
30 September 30 September 31 March
2021 2020 2021
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
---------------------------------- ------------- ------------- ------------
Revenue recognised at point of
delivery 1,662 4,304 5,864
Revenue recognised over time
- extended warranty and support
revenue 300 349 836
1,962 4,653 6,700
---------------------------------- ------------- ------------- ------------
The Group's non-current assets by geography are detailed
below:
30 September 30 September 31 March
2021 2020 2021
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
---------- ------------- ------------- ------------
UK 828 977 1,001
Americas 124 147 150
952 1,124 1,151
---------- ------------- ------------- ------------
3. Adjusted loss before tax
An adjusted loss before tax measure has been presented as the
Directors believe that this is a more relevant 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:
6 months 6 months Year ended
ended ended
30 September 30 September 31 March
2021 2020 2021
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
---------------------------- ------------- ------------- ------------
Share-based payment (LTIP) 138 177 409
Total adjustments 138 177 409
---------------------------- ------------- ------------- ------------
4. Loss per share
The following reflects the loss and share data used in the basic
and diluted loss per share calculations:
Unadjusted loss per share 6 months 6 months Year ended
ended ended
30 September 30 September 31 March
2021 2020 2021
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
---------------------------------------- ------------- ------------- ----------------
Loss from continuing operations
attributable to ordinary shareholders (1,914) (394) (2,490)
---------------------------------------- ------------- ------------- ----------------
Loss from continuing and discontinued
operations attributable to ordinary
shareholders (1,947) (353) (2,488)
Weighted average number of shares 145,779,118 145,454,118 145,515,022
---------------------------------------- ------------- ------------- ----------------
Basic and diluted loss per share
- continuing operations (1.31p) (0.27p) (1.71p)
---------------------------------------- ------------- ------------- ----------------
Basic and diluted loss per share
- continuing and discontinued
operations (1.34p) (0.24p) (1.71p)
---------------------------------------- ------------- ------------- ----------------
Adjusted loss per share 6 months 6 months Year ended
ended ended
30 September 30 September 31 March
2021 2020 2021
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
------------------------------------------ ------------- ------------- ----------------
Loss from continuing operations
attributable to ordinary shareholders (1,914) (394) (2,490)
------------------------------------------ ------------- ------------- ----------------
Share-based payment 138 177 409
Adjusted (loss)/profit after
tax (1,776) (217) (2,081)
------------------------------------------ ------------- ------------- ----------------
Weighted average number of shares 145,779,118 145,454,118 145,515,022
------------------------------------------ ------------- ------------- ----------------
Basic and diluted loss per share (1.31p) (0.27p) (1.71p)
------------------------------------------ ------------- ------------- ----------------
Basic and diluted adjusted (loss)/profit
per share (1.22p) (0.15p) (1.43p)
------------------------------------------ ------------- ------------- ----------------
The inclusion of potential Ordinary Shares arising from Share
based payments (LTIP awards and EMI Options) would be
anti-dilutive. Basic and diluted loss per share has therefore been
calculated using the same weighted number of shares.
Notes to the financial statements (continued)
for the six months ended 30 September 2021
5. Issued share capital
As at 30 September 2021, there were 145,779,118 Ordinary Shares
in issue (H1 2021: 145,454,118, FY 2021 145,779,118).
6. Share options
The following share awards were granted in the six-month period
ended 30 September 2021:
EMI Approved
Options
Grant date 4 August
2021
-------------
Number granted 200,000
-------------
Exercise price 24.40p
-------------
Vesting period (years) 3.0
-------------
The share-based payment charge in the period amounts to GBP138k
(H1 2021: GBP177k, FY 2021: GBP409k), with the fair value charge
attributable to new awards in the period determined using a Black
Scholes calculation.
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END
IR VKLFFFFLEFBZ
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November 22, 2021 02:00 ET (07:00 GMT)
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