TIDMTHRU
RNS Number : 0747K
Thruvision Group PLC
19 December 2022
19 December 2022
Thruvision Group plc
(" Thruvision " or the " Group ")
Interim Results for the six months ended 30 September 2022
Thruvision Group plc (AIM: THRU), the specialist provider of
'safe distance' people-screening technology to the international
security market, announces unaudited results for the six months
ended 30 September 2022 (the first half of the Group's 2023
financial year - H1 2023) .
Key Highlights
-- Revenue was up 41% to GBP2.8 million (H1 2022: GBP2.0 million).
-- Two strategically important and larger than anticipated orders
received from US Customs and Border Protection (CBP) worth GBP8.7
million(1) ($9.7 million).
-- Despite challenging economic conditions for retailers, Profit
Protection product revenue for H1 was unchanged at GBP1.0 million
(H1 2022: GBP1.0 million) with good order intake since 1 October
from a combination of existing and new customers.
-- The Group's operating loss was GBP1.9 million (H1 2022: loss
of GBP2.0 million) and gross margin was 49% (H1 2022: 49%).
The Group's Adjusted EBITDA(2) loss was GBP1.6 million (H1 2022:
loss of GBP1.6 million).
-- The Group is currently on track to achieve its objective of
breaking even at Adjusted EBITDA this financial year for the
first time.
-- Cash balance as at 30 September 2022 was GBP1.1 million (31
March 2022: GBP5.4 million), with cash at 15 December 2022 of
GBP4.3 million.
(1) CBP US$ orders have been translated at the 30 September $:GBP
closing exchange rate of 1.12 throughout this announcement.
H1 2023 H1 2022
Continuing operations Unaudited Unaudited
GBPm GBPm Change
------------------------------ ----------- ----------- ---------
Statutory measures:
Revenue 2.8 2.0 +41%
Gross profit 1.4 1.0 +41%
Gross margin 49% 49% -
Operating loss (1.9) (2.0) +6%
Loss before tax (1.9) (2.0) +5%
Alternative measures:
Adjusted overheads (2) (3.2) (2.8) (13%)
Adjusted EBITDA (2) (1.6) (1.6) +1%
Adjusted loss before tax (2) (1.8) (1.9) +1%
------------------------------ ----------- ----------- ---------
(2) Alternative performance measures ('APMs') are used
consistently throughout this announcement and are referred to as
'adjusted'. These are defined in full and reconciled to the
reported statutory measures in the Appendix.
Commenting on the results, Colin Evans, Chief Executive of
Thruvision, said:
"With our unique offering and the traction we have gained in our
two core markets, Customs and Profit Protection, we expect to
deliver strong growth and achieve our objective of breaking even
this financial year. With over 100 of our highest-performance
cameras being deployed by US Customs and Border Protection (CBP)
over the coming months and with a multi-year purchasing framework
now in place, we expect further growth with this key customer over
the coming years as it starts a full rollout of our technology.
This significant opportunity, together with demand from other
customs agencies and our growing base of Profit Protection
customers should give us a profitable revenue base from which we
can now build the Group ."
For further information please contact:
Thruvision Group plc +44 (0)12 3542 5400
Tom Black, Chairman
Colin Evans, Chief Executive
Victoria Balchin, Chief Financial Officer
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 / Jemima Gurney
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
Important information
This announcement may include statements that are, or may be
deemed to be, "forward-looking statements" (including words such as
"believe", "expect", "estimate", "intend", "anticipate" and words
of similar meaning). By their nature, forward-looking statements
involve risk and uncertainty since they relate to future events and
circumstances, and actual results may, and often do, differ
materially from any forward-looking statements. Any forward-looking
statements in this announcement reflect management's view with
respect to future events as at the date of this announcement. Save
as required by applicable law, the Company undertakes no obligation
to publicly revise any forward-looking statements in this
announcement, whether following any change in its expectations or
to reflect events or circumstances after the date of this
announcement.
Chairman's Statement
The Group saw trading momentum build through the period, despite
a worsening economic backdrop, culminating in the receipt of two
strategically important orders from US Customs and Border
Protection (CBP), via our US Government contracting partner,
totalling GBP8.7 million ($9.7 million). Revenue for the period was
GBP2.8 million, representing growth of 41% versus the comparable
period last year (H1 2022: GBP2.0 million), with our Customs and
Profit Protection markets accounting for almost the entirety of
this figure. In October, on receipt of the second order from CBP,
CBP order backlog stood at GBP7.4 million ($8.3 million), and
further non-CBP orders totalling GBP1.3 million have been received
since. We expect to deliver most, if not all, of this order backlog
during the second half of the financial year.
Customs
After successful pilot deployments in the summer of 2021, the
two CBP awards are an important milestone in the Group's strategic
development. Once delivered, CBP will have deployed over 100 of our
latest, high-performance cameras at land border crossings and
international airports where they will be used to check travellers
for contraband. One of the awards was made as the first purchase
under a framework purchasing agreement that CBP put in place during
the period. This agreement provides the mechanism through which CBP
can fulfil its publicly stated intention, as reported in our April
2022 update, to acquire significant further "passive body scanners"
in the period to September 2026.
Strategic adoption by CBP clearly assists our broader sales
efforts with other international Customs agencies. We received an
order for a sixth tranche of cameras from an existing Asian Customs
agency customer in November and we have several live opportunities
with other agencies where we expect to see progress in 2023.
Profit Protection
Almost all retail organisations we speak to report a rising
level of employee theft, potentially connected to the rapidly
increasing cost of living being felt in most global markets.
Therefore, while the economic situation has become increasingly
challenging for our Profit Protection customers, we have seen an
encouraging take-up of our new "WalkTHRU" screening lane solution
which we pioneered with Next and for which we recently won a retail
industry award . This solution comprises two cameras along with our
AI algorithm to significantly increase the throughput rate . This
allows 100% of employees to be screened quickly and effectively
thereby maximizing deterrence and delivering a strong return on
investment, with one major UK retailer calculating a payback within
six months of deploying Thruvision products.
Given employee theft is increasingly problematic and with a
growing list of flagship customers addressing the problem with our
solution, we remain confident that a combination of existing
customers buying more, and new retailers / third party logistics
(3PL) companies signing up will allow us to maintain our
performance in this market in the short term and return to growth
as economic conditions recover.
People
I am delighted to welcome Victoria Balchin, our new Chief
Financial Officer, who started with us in October 2022. Victoria
brings significant relevant experience to the Group. She qualified
as a chartered accountant with PwC and has held a number of finance
roles with British Sky Broadcasting Group plc, SABMiller plc,
Spectris plc and Brüel & Kjær Vibro, a Spectris business
headquartered in Germany. Victoria's appointment means that two of
the five members of the Board are now female.
After 12 years of service with the Group our Company Secretary,
John Woollhead, informed the board of his intention to retire at
the end of December. John has been a first-class and trusted
colleague for almost 20 years, and we will greatly miss his wise
counsel and good humour. John will be replaced by Hannah Platt, a
chartered accountant who qualified with EY and who has held a range
of commercial and company secretarial positions.
Outlook
The Group is entering a new phase in its development. With the
strategically significant purchasing framework with CBP now in
place and a material order backlog built for our second half, we
expect to deliver strong growth and achieve our objective of
breaking even this financial year.
Looking forward, the growing interest across our key markets
together with the enthusiasm with which our latest products have
been received by customers, gives us confidence that profitable
revenue growth will continue beyond the current period.
Strategic Update
Thruvision technology addresses the growing international need
to screen individuals for weapons, contraband or other illicit
items that might be concealed in their clothing. By operating at a
distance of around 3 metres from the person being screened,
Thruvision cameras are a very fast, flexible and effective way of
detecting non-metallic items in particular. Unlike airport body
scanners, Thruvision allows a security guard to see the concealed
item, meaning the need to physically touch the individual being
screened is removed.
These important competitive differentiators mean that Thruvision
has achieved critical mass in our two key markets - Customs and
Profit Protection, where we help reduce theft from retail
warehouses. In both markets, items being concealed are almost
always non-metallic - typically drugs and cash in Customs, and a
wide range of fashion, tobacco, alcohol, beauty and electronic
products in Retail. This means metal detectors (either walk-through
or handheld) do not work at all, and airport body scanners are
simply too slow and cumbersome to be effective in the very busy
border control and retail warehouse markets.
Given our growing, well-known "flagship" customer base in both
markets, we are now firmly established as a mainstream solution,
and we will continue to proactively invest in further sales
resource to drive growth. We remain engaged in the Aviation market
and in Entrance Screening but expect to see only modest revenue in
these markets in the short to medium term.
Business Review
Customs
As announced on 22 September and 5 October 2022, we received two
strategically important orders from US Customs and Border
Protection (CBP), via our US Government contracting partner,
totalling GBP8.7 million ($9.7 million) in September 2022. The
first of these orders, totalling GBP2.4 million ($2.7 million), was
to complete the process of upgrading CBP's existing fleet of 60
cameras to our latest high definition 16-channel variant. Half of
this first order was delivered in H1 with the balance to be
delivered in H2.
The second order, for GBP6.3 million ($7.0 million), was the
first to be received under a new framework purchasing agreement
which can, in principle, allow CBP to place additional orders for a
further four years up to the end of September 2026 . This order
further expands the CBP fleet of Thruvision equipment and is
expected to broaden operational deployments into major US
international airports for the first time. The order size is larger
than we had originally expected for FY23.
Our April 2022 trading update stated that CBP had made public
its intentions to acquire significant numbers of additional
"passive body scanners" during 2022 and beyond. The framework
purchasing agreement provides a mechanism through which CBP can
execute this intention. In this context, it is worth noting that in
total, Thruvision received orders worth
GBP12.5 million ($14.0 million) from CBP in the US Government's
last financial year (1 October 2021 to 30 September 2022).
Other orders received in this second half include an order from
an existing Asian Customs agency customer for a sixth tranche of
cameras to be delivered in the second half. We successfully beat
Chinese competition to this award. We continue to engage with
several other international Customs agencies (some existing
customers, others new) who are interested in acquiring Thruvision
products for contraband detection.
Profit Protection
The economic situation has become increasingly challenging for
retailers as the year has progressed and has resulted in our Profit
Protection product revenue for H1 being unchanged at GBP1.0 million
(H1 2022: GBP1.0 million). Encouragingly however, existing Profit
Protection customers have continued to expand and upgrade their
Thruvision fleets. This is because they now fully understand the
in-year return on investment that can be achieved by deploying our
technology. As discussed in the Chairman's Statement, we are seeing
strong interest in our latest "WalkTHRU" lane which we have now
sold to existing customers, Next and JD Sports in the UK, and a new
customer in the US, Saks Fifth Avenue.
Our focus on Third-Party Logistics providers (3PLs) which
operate significant numbers of distribution centres has also
delivered further success. In addition to CEVA, we have signed a
global supply framework agreement with a second major global 3PL,
which is headquartered in Germany. We have delivered a WalkTHRU
solution to one of this 3PL's high profile sites in the UK and are
discussing further deployments over the next few months with
them.
Aviation
While our solutions can be used for employee security screening
in airports in the US, passenger security screening is highly
regulated and requires accreditation. We started this process with
the US Transportation Security Administration (TSA) before the
pandemic and , after significant delays, testing has now
recommenced. Such accreditation would enable the use of our
solutions for passenger security screening in US airports. We are
seeing modest renewed demand from US airports for employee security
screening.
Entrance Security
Our key differentiator in this market is the ability to process
high visitor throughput rates and reliably detect mass casualty
threats such as military assault rifles and person-borne bomb
vests. We are seeing modest renewed interest, principally from the
Middle East although this is unlikely to become a reliable revenue
stream for the business.
Product Range
We are delighted with the uptake of our AI detection algorithm,
which is branded "Dynamic Detection". This has been included in the
latest cameras provided to CBP for Customs applications, and it is
enhancing the operational performance on our new WalkTHRU lane
described above. We continue to invest in further image processing
capabilities which we expect to add as software upgrades to our
camera range in calendar 2023, further weighting the value of our
solution towards software rather than purely hardware.
Supply chain
Despite well-documented global supply chain issues, we have
worked hard with our specialist Terahertz component suppliers to
maintain surety of supply of the very specific and even unique
components we require. Like others, we have been fully exposed to
global shortages of more mainstream electronics but have managed
this situation effectively by holding higher than normal levels of
inventory to mitigate delivery risk. Our ability to manufacture
using our US-based partner is now proven and is playing a
significant role in delivering the major CBP orders received in
September and October of this year.
People
Group headcount remained level at 47 during the period.
Financial review
Summary
Revenue for the six months ended 30 September 2022 was GBP2.8
million (H1 2022: GBP2.0 million; FY 2022: GBP8.4 million). H1 2023
contained a single large order from US Customs and Border
Protection (CBP) resulting in revenue of GBP1.3 million in the
period which did not occur in H1 2022. Gross margin remained level
with the prior period at 49% (H1 2022: 49%;
FY 2022: 47%).
Operating loss in the period was GBP1.9 million (H1 2022: loss
of GBP2.0 million; FY 2022: loss of GBP1.9 million).
Cash as of 30 September 2022 was GBP1.1 million (31 March 2022:
GBP5.4 million), with cash at 15 December 2022 of
GBP4.3 million. The majority of the reduction in cash during H1
relates to increases in our inventory balance to support delivery
of expected orders in H2 partly driven by targeted additional
inventory held for certain components where lead times were
becoming more uncertain.
Revenue
Revenue was GBP2.8 million in the six months to 30 September
2022 (H1 2022: GBP2.0 million, FY 2022: GBP8.4 million) and has
been split between our two principal activities (product revenue
and support and development revenue) as below:
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2022 2021 2022
GBP'000 GBP'000 GBP'000
------------------------- -------------- -------------- ----------
Product 2,364 1,622 7,667
Support and Development 407 340 694
------------------------- -------------- -------------- ----------
Total 2,771 1,962 8,361
------------------------- -------------- -------------- ----------
The principal growth driver for the business is product 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. Product revenue is split
further by sector below:
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2022 2021 2022
Product revenue by sector GBP'000 GBP'000 GBP'000
--------------------------- -------------- -------------- ----------
Profit Protection 992 982 3,505
Customs 1,370 198 3,404
Aviation - 128 131
Entrance Security 2 314 627
Total 2,364 1,622 7,667
--------------------------- -------------- -------------- ----------
Gross Margin
Gross margin remained level with the comparable period at 49%
(H1 2022: 49%, FY 2022: 47%) and higher than the full year
results.
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2022 2021 2022
GBP'000 GBP'000 GBP'000
---------------- -------------- -------------- ----------
Revenue 2,771 1,962 8,361
Gross Profit 1,356 961 3,902
---------------- -------------- -------------- ----------
Gross margin % 49% 49% 47%
---------------- -------------- -------------- ----------
Financial review (continued)
Administrative expenses
We continue to invest in sales and marketing activities relating
to Profit Protection in the US, whilst further investing in our
engineering, manufacturing capability and software development.
Administrative expenses increased by 9% to GBP3.2 million with
adjusted overheads up by 13% to GBP3.2 million compared to the
prior period. Administrative expenses include share-based payment
charges, but these are excluded from adjusted overheads. Adjusted
overheads as a proportion of sales were 115% (H1 2022: 144%; FY
2022: 74%) reflecting the growth and phasing of revenue and
continued tight control of overheads.
Sales and marketing expenditure increased by GBP82k with
additional headcount and travel to support growth in our European
and US Profit Protection markets.
Engineering costs, include Manufacturing and R&D costs,
increased by GBP146k as a result of increased headcount in our
software team as we look to scale up and increase our product
offerings going forward.
Management and PLC costs increased driven by one-off costs
relating to the CFO replacement, higher insurance costs and
professional fees.
Adjusted overheads are analysed as follows:
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2022 2021 2022
GBP'000 GBP'000 GBP'000
------------------------------- -------------- -------------- ----------
Engineering 902 756 1,690
Sales and marketing 1,065 983 2,006
Property and administration 209 224 502
Management 597 338 708
PLC costs 354 240 693
Depreciation and amortisation 268 285 561
Foreign exchange (gains)
/ losses (203) 1 (6)
Adjusted overheads* 3,192 2,827 6,154
------------------------------- -------------- -------------- ----------
* Alternative performance measures ('APMs') are used
consistently throughout this report and are referred to as
'adjusted'. These are defined in full and reconciled to the
reported statutory measures in the Appendix.
Loss from continuing operations
The loss from continuing operations in the period was GBP1.9
million (H1 2022: loss of GBP1.9 million; FY 2022: loss of
GBP1.7 million). Adjusted loss before tax was GBP1.8 million (H1
2022: GBP1.9 million; FY 2022: loss of GBP2.3 million).
Balance sheet
Cash and cash equivalents at 30 September 2022 were GBP1.1
million (H1 2022: GBP4.1 million, FY 2022: GBP5.4 million), with
the principal impacts in the period being the loss recorded of
GBP1.8 million as well as the GBP2.7 million net working capital
outflow as set out in the cashflow statement on page 12.
Movements in working capital were as follows:
-- Trade and other receivables increased, driven by the timing
of sales, resulting in a GBP1.8 million outflow in the half
year. Included in trade and other receivables of GBP3.8m at
30 September 2022 was GBP2.4 million relating to CBP, the cash
for which was received during October and November.
-- Increased inventory to support expected orders in H2 FY 2023
as well as forward purchases of key electronic components resulted
in a GBP0.9 million outflow during in the period.
-- GBP0.3 million decrease in deferred revenue balances, as revenue
deferred as at 31 March 2022 was recognised as income during
the period.
-- An increase in trade and other payables resulted in an inflow
of GBP0.3 million. Trade creditors increased due to the timing
of stock purchases in the period.
Other
It is intended that a limited programme of share purchases by
the Thruvision plc EBT will be undertaken over the next 12 months
with the purpose of partly satisfying future employee exercises of
share options.
Consolidated income statement
6 months ended 6 months Year ended
ended
30 September 2022 30 September 31 March
2021 2022
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
----------------------------------------- ------ ------------------ ------------- ----------------
Revenue 2 2,771 1,962 8,361
Cost of sales (1,415) (1,001) (4,459)
----------------------------------------- ------ ------------------ ------------- ----------------
Gross profit 1,356 961 3,902
Administrative expenses (3,243) (2,965) (5,788)
Operating loss (1,887) (2,004) (1,886)
Finance revenue 11 10 17
Finance costs (16) (7) (20)
----------------------------------------- ------ ------------------ ------------- ----------------
Loss before tax (1,892) (2,001) (1,889)
Income tax 89 87 231
----------------------------------------- ------ ------------------ ------------- ----------------
Loss for the period
from continuing operations (1,803) (1,914) (1,658)
----------------------------------------- ------ ------------------ ------------- ----------------
Discontinued operations
Loss from discontinued operation (net of tax) - (33) -
Loss for the period (1,803) (1,947) (1,658)
Basic and diluted loss
per share - continuing
operations 3 (1.23p) (1.31p) (1.14p)
----------------------------------------- ------ ------------------ ------------- ----------------
Consolidated statement of comprehensive income
6 months ended 6 months Year ended
ended
30 September 2022 30 September 31 March 2022
2021
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
-------------------------------------------------------------- ------------------ ------------- --------------
Loss for the period from continuing operations (1,803) (1,914) (1,658)
Loss for the period from discontinued operations - (33) -
--------------------------------------------------------------- ------------------ ------------- --------------
Loss for the period
attributable to owners
of the parent (1,803) (1,947) (1,658)
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 (45) 2 (6)
Total comprehensive loss attributable to owners of the parent (1,848) (1,945) (1,664)
--------------------------------------------------------------- ------------------ ------------- --------------
Consolidated statement of financial position
at 30 September 2022
30 September 30 September 31 March
2022 2021 2022
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
------------------------------ ----- ------------- ------------- ----------
Assets
Non-current assets
Property, plant and
equipment 962 910 1,175
Other intangible assets 140 42 79
------------------------------ ----- ------------- ------------- ----------
1,102 952 1,254
Current assets
Inventories 4,772 5,257 3,868
Trade and other receivables 3,813 1,316 1,982
Current tax recoverable 302 270 210
Cash and cash equivalents 1,091 4,097 5,441
------------------------------ ----- ------------- ------------- ----------
9,978 10,940 11,501
------------------------------ ----- ------------- ------------- ----------
Total assets 11,080 11,892 12,755
Equity and liabilities
Attributable to owners
of the parent
Equity share capital 4 1,472 1,458 1,466
Share premium 308 47 201
Capital redemption
reserve 163 163 163
Translation reserve 16 69 61
Retained earnings 5,802 7,769 7,554
------------------------------ ----- ------------- ------------- ----------
Total equity 7,761 9,506 9,445
------------------------------ ----- ------------- ------------- ----------
Non-current liabilities
Other payables 518 259 600
Provisions 38 38 38
556 297 638
------------------------------ ----- ------------- ------------- ----------
Current liabilities
Trade and other payables 2,557 1,849 2,494
Provisions 206 240 178
2,763 2,089 2,672
------------------------------ ----- ------------- ------------- ----------
Total liabilities 3,319 2,386 3,310
------------------------------ ----- ------------- ------------- ----------
Total equity and liabilities 11,080 11,892 12,755
------------------------------ ----- ------------- ------------- ----------
Consolidated statement of changes in equity (unaudited)
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 2021 1,458 47 163 67 9,578 11,313
----------------------- --------- --------- ------------ --------------- ------------ -----------------
Share based payment
charge - - - - 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
----------------------- --------- --------- ------------ --------------- ------------ -----------------
Shares issued 8 154 - - - 162
Share based payment
credit - - - - (504) (504)
----------------------- --------- --------- ------------ --------------- ------------ -----------------
Transactions with
shareholders 8 154 - - (504) (342)
Profit for the period - - - - 289 289
Other comprehensive
expense - - - (8) - (8)
----------------------- --------- --------- ------------ --------------- ------------ -----------------
Total comprehensive
(loss)/income - - - (8) 289 281
----------------------- --------- --------- ------------ --------------- ------------ -----------------
At 31 March 2022 1,466 201 163 61 7,554 9,445
----------------------- --------- --------- ------------ --------------- ------------ -----------------
Shares issued 6 107 - - - 113
Share based payment
charge - - - - 51 51
----------------------- --------- --------- ------------ --------------- ------------ -----------------
Transactions with
shareholders 6 107 - - 51 164
Loss for the period - - - - (1,803) (1,803)
Other comprehensive
loss - - - (45) - (45)
----------------------- --------- --------- ------------ --------------- ------------ -----------------
Total comprehensive
loss - - - (45) (1,803) (1,848)
----------------------- --------- --------- ------------ --------------- ------------ -----------------
At 30 September
2022 1,472 308 163 16 5,802 7,761
----------------------- --------- --------- ------------ --------------- ------------ -----------------
Consolidated statement of cash flows
6 months ended 6 months Year ended
ended
30 September 2022 30 September 31 March
2021 2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
-------------------------------------------------------------------- ------------------ ------------- -----------
Operating activities
Loss for the period (1,803) (1,947) (1,658)
-------------------------------------------------------------------- ------------------ ------------- -----------
Adjustments:
Depreciation of property, plant and equipment 258 278 546
Amortisation of intangible assets 10 7 15
Share-based payment charge/(credit) 51 138 (366)
Profit on disposal of property, plant & equipment (10) - -
Finance income (10) (10) (17)
Finance costs 16 7 20
Taxation credit (89) (87) (231)
Working capital movements:
(Increase) / decrease in trade and other receivables (1,811) 126 (540)
(Increase) / decrease in inventories (904) (838) 551
Increase / (decrease) in trade and other payables 348 (487) 305
Increase in provisions 28 65 3
Decrease in deferred revenue (322) (460) (683)
Transfer from property, plant and equipment to inventory - 25 70
Cash utilised in operations (4,238) (3,183) (1,985)
Tax received - 197 399
-------------------------------------------------------------------- ------------------ ------------- -----------
Net cash outflow from operating activities (4,238) (2,986) (1,586)
-------------------------------------------------------------------- ------------------ ------------- -----------
Investing activities
Purchase of property, plant & equipment (26) (111) (187)
Purchase of intangible assets (70) - (46)
Proceeds from disposal of property, plant and equipment 11 - -
Interest received 10 10 17
Net cash outflow from investing activities (75) (101) (216)
-------------------------------------------------------------------- ------------------ ------------- -----------
Financing activities
Proceeds from issues of shares 93 - 162
Payments on principal portion of lease liabilities (81) (82) (168)
Interest paid on lease liabilities (4) (7) (13)
Net cash inflow / (outflow) from financing activities 8 (89) (19)
-------------------------------------------------------------------- ------------------ ------------- -----------
Net decrease in cash and cash equivalents (4,305) (3,176) (1,821)
Cash and cash equivalents at beginning of the period 5,441 7,268 7,268
Effect of foreign exchange rate changes on cash and cash
equivalents (45) 5 (6)
-------------------------------------------------------------------- ------------------ ------------- -----------
Cash and cash equivalents at end of the period 1,091 4,097 5,441
-------------------------------------------------------------------- ------------------ ------------- -----------
Notes to the financial statements
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 2022 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 2022.
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 29 September 2022
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 2022 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
2022 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 2022.
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 2022 Annual Report available on the
Group's website: www.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 GBP1.9 million (H1 2022: GBP2.0 million; FY 2022: GBP1.9
million). As at 30 September 2022 the Group had net current assets
of GBP7.2 million (30 September 2021: GBP8.9 million; 31 March
2022: GBP8.8 million) and net cash reserves of GBP1.1 million (30
September 2021: GBP4.1 million; 31 March 2022: GBP5.4 million).
Additionally cash and cash equivalents were GBP4.3 million as at 15
December 2022.
The Board has reviewed cash flow forecasts for the period up to
and including 31 December 2023. 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
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 31 December 2023 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)
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
7.
Analysis of revenue by customer
There have been two (H1 2022: three, FY 2022: two) individually
material customer(s) (each comprising in excess of 10% of revenue)
during the period. These customers individually represented
GBP1,335k and GBP415k of revenue (H1 2022: GBP359k, GBP206k and
GBP200k, FY 2022: GBP3,740k and GBP1,059k).
The Group's revenue by customer's geographical location is
detailed below:
30 September 30 September 31 March
2022 2021 2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
--------------- ------------- ------------- ------------
UK and Europe 990 1,033 3,508
Americas 1,759 693 4,445
Rest of World 22 236 408
2,771 1,962 8,361
--------------- ------------- ------------- ------------
The Group's revenue by type is detailed below:
30 September 30 September 31 March
2022 2021 2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
---------------------------------- ------------- ------------- ------------
Revenue recognised at point in
time 2,398 1,662 7,718
Revenue recognised over time
- extended warranty and support
revenue 373 300 643
2,771 1,962 8,361
---------------------------------- ------------- ------------- ------------
The Group's non-current assets by geography are detailed
below:
As at As at As at
30 September 30 September 31 March
2022 2021 2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
---------- -------------- -------------- -------------
UK 1,037 828 1,157
Americas 65 124 97
1,102 952 1,254
---------- -------------- -------------- -------------
Notes to the financial statements (continued)
3. Loss per share
The following reflects the loss and share data used in the basic
and diluted loss per share calculations:
Loss per share 6 months ended 6 months Year ended
ended
30 September 2022 30 September 31 March
2021 2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
----------------------------------------------------------------- ------------------ ------------- ----------------
Loss from continuing operations attributable to ordinary
shareholders (1,803) (1,914) (1,658)
----------------------------------------------------------------- ------------------ ------------- ----------------
Loss from continuing and discontinued operations attributable to
ordinary shareholders (1,803) (1,947) (1,658)
Weighted average number of shares 147,097,721 145,779,118 145,853,091
----------------------------------------------------------------- ------------------ ------------- ----------------
Basic and diluted loss per share - continuing operations (1.23p) (1.31p) (1.14p)
----------------------------------------------------------------- ------------------ ------------- ----------------
Basic and diluted loss per share - continuing and discontinued
operations (1.23p) (1.34p) (1.14p)
----------------------------------------------------------------- ------------------ ------------- ----------------
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.
4. Issued share capital
As at 30 September 2022, there were 147,165,718 Ordinary Shares
in issue (30 September 2021: 145,779,118;
31 March 2022: 146,589,118).
APPIX - ALTERNATIVE PERFORMANCE MEASURES
Policy
Thruvision uses adjusted figures as key performance measures in
addition to those reported under IFRS, as management believe these
measures enable management and stakeholders to assess the
underlying trading performance of the businesses as they exclude
certain items that are considered to be significant in nature
and/or quantum.
The alternative performance measures ('APMs') are consistent
with how the businesses' performance is planned and reported within
the internal management reporting to the Board. Some of these
measures are used for the purpose of setting remuneration
targets.
The key APMs that the Group uses include adjusted measures for
the income statement together with adjusted cash flow measures.
Explanations of how they are calculated and how they are reconciled
to an IFRS statutory measure are set out below.
Adjusted measures
The Group's policy is to exclude items that are considered to be
significant in nature and/or quantum and where treatment as an
adjusted item provides stakeholders with additional useful
information to better assess the period-on-period trading
performance of the Group. The Group excludes certain items, which
management have defined for 2023 and 2022 as:
- Share based payments charge or income
Based on the above policy, the adjusted performance measures are
derived from the statutory figures as follows
a) Adjusted overheads
6 months ended 6 months Year ended
ended
30 September 2022 30 September 31 March 2022
2021
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
------------------------------------- ------------------ ------------- ---------------
Administrative expenses (3,243) (2,965) (5,788)
------------------------------------- ------------------ ------------- ---------------
Add back:
Share-based payment charge/(credit) 51 138 (366)
------------------------------------- ------------------ ------------- ---------------
Adjusted overheads (3,192) (2,827) (6,154)
------------------------------------- ------------------ ------------- ---------------
b) Adjusted EBITDA
6 months ended 6 months Year ended
ended
30 September 2022 30 September 31 March 2022
2021
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
------------------------------------- ------------------ ------------- -----------------
Statutory operating loss (1,887) (2,004) (1,886)
------------------------------------- ------------------ ------------- -----------------
Add back:
Depreciation and amortisation 268 285 561
Share-based payment charge/(credit) 51 138 (366)
------------------------------------- ------------------ ------------- -----------------
Adjusted EBITDA (1,568) (1,581) (1,691)
------------------------------------- ------------------ ------------- -----------------
c) Adjusted loss before tax
6 months ended 6 months Year ended
ended
30 September 2022 30 September 31 March
2021 2022
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
------------------------------------- ------------------ ------------- -----------
Statutory loss before tax (1,892) (2,001) (1,889)
------------------------------------- ------------------ ------------- -----------
Add back:
Share-based payment charge/(credit) 51 138 (366)
------------------------------------- ------------------ ------------- -----------
Adjusted loss before tax (1,841) (1,863) (2,255)
------------------------------------- ------------------ ------------- -----------
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END
IR FVLFFLLLBFBQ
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