TIDMINX
RNS Number : 1575N
i-nexus Global PLC
30 May 2022
30 May 2022
i-nexus Global plc
("i-nexus", the "Company" or the "Group")
Interim Results
i-nexus Global plc (AIM: INX), a leading provider of cloud-based
Strategy Execution software solutions designed for the Global 5000,
today provides its unaudited results for the 6 months ended 31
March 2022.
Financial Highlights
-- New Monthly Recurring Revenue (MRR) improved at GBP23k (H1 2021: GBP8k)
-- Net Retention** of existing accounts for FY 2022 improved at 94% (FY 2021: 73%)
-- Group Revenue GBP1.54m (H1 2021: GBP2.01m)
o Recurring revenue GBP1.42m (H1 2021: GBP1.81m)
o Services revenue GBP0.12m (H1 2021: GBP0.20m)
o This reduction in Recurring revenue reflects the exceptional
level of churn experienced in FY21
-- Gross margin relatively stable at 77% (H1 2021: 81%)
-- Adjusted EBITDA loss* of GBP0.14m (H1 2021: GBP0.12m)
-- Loss before tax GBP0.34m (H1 2021: GBP0.43m)
-- Cash balance at 31 March 2022 improved at GBP0.69m (Cash and
cash equivalents at 30 September 2021: GBP0.58m)
* Earnings before depreciation, amortisation, impairment,
profit/loss on disposal of assets, share based payments and
non-underlying items
** Net Retention is the % that closing MRR of existing accounts
represents of the opening MRR of existing accounts
Operational Highlights and Outlook
-- The two key leading indicators above show an upward trend and
have been at the center of our focus over the last 9 months
following the worst impact of the pandemic
-- Sales momentum continued through the period, securing 5
contract wins and 2 upsells within existing accounts, with a
combined FY22 MRR of GBP23k, a 10% gross increase on our opening
position of GBP235k
-- The number of renewing customers increased significantly,
contributing to a Net Retention rate of 94%, a considerable
improvement on the prior year
-- Average deal size is increasing and we now have clear
predictable conversion rates of leads into deals
-- On track to deliver double digit net MRR growth in FY22
-- Continued investment in our solution including new features
designed to enhance the user experience
Simon Crowther, Chief Executive, of i-nexus Global plc,
commented: "We are delighted to report that the increase in win
rate experienced in Q4 has continued into the current year,
reflecting the transformation we have effected within our sales and
marketing approaches, combined with the increased industry
recognition of the quality of our enterprise grade offering.
"The changes brought by the pandemic have highlighted the need
for scalable, robust, digital strategy execution tools and the
market for our software is growing. We will continue to invest in
the capabilities of our offering, broadening the scope of our
solutions while ensuring we consistently deliver high levels of
customer satisfaction. The growth in our customer base and the
steady increase in recurring revenues, means we look to the future
with confidence."
For further information please contact:
i-nexus Global plc Via: Alma PR
Simon Crowther, CEO
Alyson Levett, CFO
Singer Capital Markets (Nominated Tel: +44 (0)207 496
Adviser and Broker) 3000
Sandy Fraser / Alaina Wong (Corporate
Finance)
Tom Salvesen (Corporate Broking)
Alma PR Tel: +44 (0)203 405
Caroline Forde 0205
About i-nexus Global plc
i-nexus Global plc ("i-nexus") helps organisations achieve their
goals. Whether executing a strategy, driving operational excellence
and continuous performance improvement, or coordinating portfolios
and programs to transform results, i-nexus strategy execution
software underpins success.
Today, we support organisations in managing over 200,000
strategic programmes around the world.
i-nexus transforms how organisations plan, execute, and track
goals. We inspire the confidence to leave behind the spreadsheets,
presentations and reports those organisations rely on, replacing it
with a cloud-based, collaborative solution.
BUSINESS REVIEW
Overview
We are pleased to report on a period of encouraging trading,
building on the investments made in our product offering and our
sales and marketing approaches in the year to 30 September 2021.
The sales successes in the period, the significant reduction in
non-renewing existing accounts and the well verified opportunities
in our sales pipeline, leaves us optimistic that we are on track to
achieve double digit net MRR growth in the year.
Our aim over the last 12 months has been to re-build sales
momentum in the business, and we believe results up to the date of
this report provide evidence of our success in this regard. We are
delivering a consistent volume of well verified sales leads each
month. We have invested in our product, in response to customer
feedback, in areas such as ease of use. This has been particularly
useful in the sales process, allowing multiple trial
implementations within the process, resulting in a much deeper
engagement from prospects. While sales conversion and contracting
in particular is still lengthy, both continue to progress.
Trading
We secured 5 new customers in the period (H1 FY21: 1) which
along with the existing account upsells delivered a combined GBP23k
MRR as noted above and a further 4 new customers are contracted at
the time of the issue of this report, delivering a further combined
value of GBP17k MRR. Each of these wins services limited business
areas or teams within the customer and so each presents
considerable expansion opportunities. On that theme, we expanded
the use of our software within 3 existing accounts (H1 FY21: 1)
including within one new account within the first few months of use
of the platform. We continue to have several live trial
implementations at multiple enterprises across the US, UK and
Europe and an ongoing paid Pilot with a major technology
company.
Fundamental to these successes has been our increased
understanding of where we sit within the competitive market
landscape. We are now clearer on our differentiators and confident
our platform is the best in class to support enterprise level
strategy execution - a view confirmed to us by our prospects.
We continue to be careful with our investment in the business
and are conscious of the increased need to be prudent in the face
of rising costs. Many of our contracts allow for an annual fee
increase after the initial term and we will seek to strengthen such
options as we progress this year.
Market opportunity
All businesses set goals, plan how to deliver them and track
performance. The challenge is if they can do this at pace, with
insight and high levels of visibility across their complex
operating environment. In most cases the answer to this is no and
this is where i-nexus' software delivers considerable value.
Our software category - Strategy Execution Management (SEM) -
continues to evolve and gain momentum as companies accelerate
digitising mission-critical processes in this post pandemic world.
Faced with market uncertainty, this "new normal" future requires
companies to increase responsiveness by dynamically managing their
strategic plan; something that we believe simply cannot be achieved
in spreadsheets and other conventional productivity tools.
The growing importance of the SEM market has been acknowledged
by leading analysts including Gartner Research, with SEM now
considered an integral part of the new Strategy Portfolio
Management (SPM) software category.
We are seeing an increased sophistication in our market, with
prospects frequently now coming to us with very well thought
through capability requirements, having pre-evaluated i-nexus
against the competition on a matrix of criteria. We continue to see
that i-nexus has two clear advantages in strategy execution against
SPM vendors: powerful strategic planning and performance management
capabilities that complement portfolio management features. Plus,
i-nexus' customers benefit from insight gained from over fifteen
years of market experience in strategy execution.
People
We have a talented, committed team at i-nexus, all pulling in
the same direction and now delivering results. The Board would like
to once again thank them all for their commitment.
We announced in May that our longstanding CFO, Alyson Levett
will be stepping down from the Board in August to pursue a
portfolio career. In the near term, Ms. Levett will remain
available to i-nexus in an advisory role to ensure an orderly hand
over. The Board are incredibly grateful for the tireless work and
huge personal commitment that Alyson has put into ensuring the
financial stability of i-nexus. She leaves the business on a sound
financial footing, and we wish her all the very best in her future
endeavours. We are delighted to have found an exceptional CFO to
take up the role, Drew Whibley, joining us from his role as Group
Finance Manager at LSE listed software business Aptitude Software
Group plc. We look forward to working with him, as we look to
continue the positive progress we have been making in recent
months.
Strategic Focus for H2
Our strategy is focused on four main programmes of work:
-- winning more logos;
-- keeping our customers through increased end user satisfaction
and helping our sponsors demonstrate value to their executives;
-- hiring the right people as we grow;
-- a focus on how to continue to evolve the capabilities of our
platform, a market product study has begun to explore this.
We believe through continued focus on these areas, we will drive
the success of the business.
Current Trading and Outlook
Following the sales successes in the period and those at the
start of H2, the Company's committed Monthly Recurring Revenue rate
will increase to GBP245k and we remain on track to deliver our
target of double digit MRR growth in the year. We are managing the
impacts of cost inflation on the business and have clear visibility
of our cash runway.
The changes brought by the pandemic have highlighted the need
for scalable, robust, digital strategy execution tools and the
market for our software is growing. We will continue to invest in
the capabilities of our offering, broadening the scope of our
solutions while ensuring we consistently deliver high levels of
customer satisfaction. The growth in our customer base and growth
in MRR, means we look to the future with confidence.
FINANCIAL REVIEW
Reported revenue
As identified above there are 2 positive forward looking metrics
that leave the Board optimistic about the Company's future
potential:
-- New MRR from deals closed in the period
-- Net Retention rate
Adverse exchange rate movements and other non-trade related
adjustments have led to a reduction in MRR of some GBP8k (H1 21:
GBP2k). However more recent events and trading performance mean the
impact of these in H2 22 is expected to be less adverse.
Double-digit net MRR growth is expected in FY22 which compares
very favourably to FY21 where the equivalent value was a net
reduction in MRR of approximately 23%.
Total recognised revenue for FY22 is however expected to be
below FY21 as this net reduction in MRR in FY21 has an adverse
impact on this Financial Year's recognisable revenue.
Total recognised revenue decreased to GBP1.54m (H1 21: GBP2.01m)
which reflects the exceptional level of churn experienced in FY21.
As a result, revenue from recurring contracted software
subscriptions reduced by 22% to GBP1.42m (H1 21: GBP1.81m). Revenue
from professional services reduced by 40% to GBP0.12m (H1 21:
GBP0.20m).
The Group signed five new customers (H1 21: one) under a
recurring contract paid annually in advance during the period and a
further four in early H2 which were delayed in contracting from H1.
Due to our subscription revenue model, the majority of revenue from
these contracts will be recognised in future periods. The timing of
the new customer orders and existing client change orders resulted
in lower levels of WIP for the service team to deliver in the
period, however an increase in both towards the end of the H1 will
contribute to better revenue results in H2.
Gross margin
Gross margin in the period remained relatively stable at 77% (H1
21: 81%). Reported gross margin is the blended gross margin over
both recurring software subscriptions and professional
services.
Overheads
Overheads (defined as the aggregate of staff costs and other
operating expenses but excluding those costs included in cost of
sales) reduced in the period by GBP0.59m to GBP1.42m (H1 21:
GBP2.01m) reflecting the full impact of the cost control
initiatives undertaken last year. As we see our new business and
change orders increasing, we have started a select number of
investments in additional resource needed for operational
delivery.
The Group's underlying cost base averaged approximately GBP0.27m
per month for H1. This level should have delivered net break-even
EBITDA, but the timing of new deals and the low services WIP led to
lower recognised revenue than Budgeted and meant we made a modest
adjusted EBITDA loss of GBP0.14m (H1 21: GBP0.12m).
Capitalised development costs amounted to GBP0.08m in the period
(H1 21: GBP0.20m). We expect to see an increase in this in H2 as we
look to add more new features.
The Group's Operating loss has reduced as a result of last
year's cost control exercise to GBP0.23m (H1 21: GBP0.36m).
Cash flow
Cash and cash equivalents closed at GBP0.69m (H1 21: GBP0.81m).
This result reflects a strong renewal performance, good cost
control and a good new deal and change order billing performance
especially towards the end of H1 and is in line with management
expectations.
Borrowings at 31 March 2022 were GBP0.05m (31 March 2021:
GBP0.24m) reflecting the full repayment of the Boost debt. The
remaining balance is an HSBC BBLS loan of which GBP0.01m is payable
within one year.
Convertible debt liability stood at GBP1.84m at 31 March 2022
(31 March 2021: GBP1.35m) excluding accrued interest of GBP0.14m
(31 March 2021: GBP0.06m).
The Group will continue to apply treasury and foreign currency
exposure management policies to minimise both the cost of finance
and our exposure to foreign currency exchange rate
fluctuations.
i-nexus Global plc
Group Statement of Comprehensive Income
Unaudited Unaudited Audited Year
Six months Six months ended 30 September
ended 31 ended 31 March 2021
March 2022 2021
GBP GBP GBP
Revenue 1,540,267 2,013,472 3,639,111
Cost of Sales (351,892) (383,829) (635,532)
Gross Profit 1,188,375 1,629,643 3,003,579
Other operating income - 25,426 88,316
Administrative Expenses (1,418,905) (2,012,829) (4,062,295)
Operating Loss (230,530) (357,760) (970,400)
Investment revenues 11 5 65
Financing Costs (112,575) (69,001) (162,855)
Loss before tax (343,094) (426,756) (1,133,190)
Tax 60,391 197,815 398,258
Loss for the period/year (282,703) (228,941) (734,932)
Other comprehensive
income:
Items that will not
be reclassified to profit
or loss
Exchange differences
arising on translation
of foreign operations 38,884 86,309 17,346
Total other comprehensive
income for the period/year 38,884 86,309 17,346
Total Comprehensive
income for the period/year (243,819) (142,632) (717,586)
GBP GBP GBP
Basic and diluted earnings
per share (0.010) (0.008) (0.025)
Adjusted EBITDA (137,552) (118,255) (256,873)
Depreciation, amortisation,
impairment and profit/loss
on disposal (88,666) (154,166) (551,862)
Share based payment
expenses (4,312) - (17,181)
Non-underlying items (85,339) (144,484)
Operating Loss (230,530) (357,760) (970,400)
----------------------------- ------------ ---------------- --------------------
Group Statement of Financial Position
Unaudited Unaudited Audited
As at 30
As at 31 March As at 31 March September
2022 2021 2021
GBP GBP GBP
Assets
Non-current assets
Intangible assets 1,120,015 1,321,613 1,099,313
Property plant and equipment 40,919 108,647 67,111
Total non-current assets 1,160,934 1,430,260 1,166,424
Current assets
Trade and other receivables 1,245,602 1,107,449 791,948
Current tax recoverable 50,000 75,000 275,000
Cash and cash equivalents 694,202 811,768 575,203
Total current assets 1,989,804 1,994,217 1,642,151
Total assets 3,150,738 3,424,477 2,808,575
Current liabilities
Borrowings 9,586 156,513 71,425
Trade and other payables 866,349 628,558 952,157
Deferred income 1,655,075 1,998,387 1,030,315
Total current liabilities 2,531,010 2,783,458 2,053,897
Non-current liabilities
Trade and other payables 140,310 - 88,330
Borrowings 37,271 80,208 42,094
Convertible loan notes 1,839,858 1,350,000 1,782,458
Provisions - 30,000 -
Total non-current liabilities 2,017,439 1,460,208 1,912,882
Total liabilities 4,548,449 4,243,666 3,966,779
------------------------------- --------------- --------------- -------------
Net liabilities (1,397,711) (819,189) (1,158,204)
------------------------------- --------------- --------------- -------------
Equity
Called up share capital 2,957,161 2,957,161 2,957,161
Share premium account 7,256,188 7,256,188 7,256,188
Equity reserve 231,851 - 231,851
Share option reserve 17,301 13,093 12,989
Foreign exchange reserve 40,760 70,839 1,876
Merger reserve 10,653,881 10,653,881 10,653,881
Retained earnings (22,554,853) (21,770,351) (22,272,150)
Total Equity (1,397,711) (819,189) (1,158,204)
------------------------------- --------------- --------------- -------------
Group Statement of Cash Flows
Unaudited Unaudited Audited
As at 31 As at 31 As at 30
March March September
2022 2021 2021
GBP GBP GBP
Cash flows from operating activities
Loss after taxation (282,703) (228,941) (734,932)
Taxation credit (60,391) (197,815) (398,258)
Loss before taxation (343,094) (426,756) (1,133,190)
Adjustments for non-cash/non-operating
items
Amortisation, depreciation, impairment
of intangible and profit on disposal 88,666 154,166 551,862
Share based payment 4,312 13,093 17,181
Finance income (11) (5) (65)
Finance charges 112,575 69,001 162,855
(137,552) (190,501) (401,357)
Changes in working capital:
(Increase)/Decrease in trade and
other receivables (453,654) (274,942) 78,059
(Decrease) in provisions - (50,702) (80,702)
Increase/(Decrease) in trade and
other payables 538,951 (336,324) (980,799)
Taxation 285,392 422,815 423,258
Net cash from operating activities 233,137 (429,654) (961,541)
Cash flows from/(used in) investing
activities
Purchase of property, plant and
equipment (3,177) (330) (1,171)
Purchase of development costs (80,000) (201,325) (335,446)
Proceeds on disposal of property,
plant and equipment 1,180
Interest received 11 5 65
Net cashflow from/used in investing
activities (83,166) (201,650) (335,372)
Cash flows from/(used in) financing
activities
Principle elements of lease costs - (37,467) (37,467)
Funds raised
Issue of convertible loans - 1,375,000 1,937,500
Proceeds from borrowings 50,000
Repayment of borrowings (66,662) (86,988) (179,981)
Interest paid (3,194) (13,793) (35,216)
Net cash flow from/used in financing
activities (69,856) 1,236,752 1,734,836
Net increase in cash and cash
equivalents 80,115 605,448 437,923
Cash and cash equivalents beginning
of the period 575,203 120,011 120,011
Effect of foreign exchange rate
changes 38,884 86,309 17,269
Cash and cash equivalents at the
end of the period 694,202 811,768 575,203
Group Statement of Changes in Equity
Share Foreign
Share Share Equity option exchange Merger Accumulated Total
Capital Premium Reserve Reserve reserve reserve losses Equity
GBP GBP GBP GBP GBP GBP GBP GBP
As at 1 October 2020 2,957,161 7,256,188 - - (15,470) 10,653,881 (21,541,410) (689,650)
Loss for period - - - - - - (228,941) (228,941)
Exchange
differences
on
HY foreign
FY2021 operations - - - - 86,309 - - 86,309
Share option expense in
the period - - - 13,093 - - - 13,093
As at 30 March 2021 2,957,161 7,256,188 - 13,093 70,839 10,653,881 (21,770,351) (819,189)
------------------------ ---------------------- ---------------------- ------------------------------ ------------------------------- ----------------------- -------------------------- --------------------------- ------------------------------
As at 1 October 2020 2,957,161 7,256,188 - - (15,470) 10,653,881 (21,541,410) (689,650)
Loss for period - - - - - - (734,932) (734,932)
Other
Comprehensive
income:
Exchange differences on
foreign operations - - - - 17,346 - - 17,346
FY2021
Total comprehensive
income
for the year - - - - 17,346 - (734,932) (717,586)
Share option expense in
the year - - - 17,181 - - - 17,181
Share options cancelled - - - (4,192) - - 4,192 -
Issue of convertible
loan - - 231,851 - - - - 231,851
Balance at 30 September
2021 2,957,161 7,256,188 231,851 12,989 1,876 10,653,881 (22,272,150) (1,158,204)
As at 1 October 2021 2,957,161 7,256,188 231,851 12,989 1,876 10,653,881 (22,272,150) (1,158,204)
Loss for the period - - - - - - (282,703) (282,703)
Other
comprehensive
income:
Exchange
differences
on
HY foreign
FY2022 operations - - - - 38,884 - - 38,884
Total comprehensive
income
for the year 2,957,161 7,256,188 231,851 12,989 40,760 10,653,881 (282,703) (243,819)
Share options expense
in the period - - - 4,312 - - - 4,312
Balance at 31 March
2022 2,957,161 7,256,188 231,851 17,301 40,760 10,653,881 (22,554,853) (1,397,711)
------------------------ ---------------------- ---------------------- ------------------------------ ------------------------------- ----------------------- -------------------------- --------------------------- ------------------------------
Notes to the consolidated interim report
For the six months ended 31 March 2022
1. General information
i-nexus Global plc (the "Company") is a public limited company
domiciled in the UK and incorporated in England and Wales
(registered number 11321642 ) and its registered office is 27-28
Eastcastle Street, London, W1W 8DH.
The principal activity of i-nexus Global plc ("the Company") and
its subsidiary companies, i-solutions Global Limited and i-nexus
(America) Inc. (together "i-nexus Global" or "the Group") is the
development and sale of Enterprise Cloud based software and
associated professional Consultancy services.
The interim condensed consolidated financial statements were
approved for issue on 27 May 2022.
2. Basis of preparation
This unaudited interim condensed consolidated financial
information has been prepared under the historical cost convention
and in accordance with AIM Rules for Companies. The interim
condensed consolidated financial information has been prepared on a
going concern basis and is presented in Sterling to the nearest
GBP1.
The Directors have at the time of approving the Interim
financial statements, a reasonable expectation that the Group has
adequate resources to continue in operational existence for the
foreseeable future. Thus, the Directors continue to adopt the going
concern basis of accounting in preparing the financial
statements.
Forecasts are adjusted for reasonable sensitivities that address
the principal risks and uncertainties to which the Group is
exposed, thus creating a number of different scenarios for the
Board to challenge. On the basis of this analysis, the Board has
concluded that there is a reasonable expectation that the Group
will have adequate resources to continue in operational existence
for the foreseeable future being a period of at least twelve months
from the date of approval of this report.
The accounting policies used in the preparation of the interim
condensed consolidated financial information are consistent with
those set out in the 2021 Annual Report and Accounts. The Group
will continue to review its accounting policies in the light of
emerging standards and industry consensus on the practical
application of IFRS.
The preparation of financial information in conformity with IFRS
requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities at the date of the
financial information and the reported amounts of revenues and
expenses during the reporting period. Although these estimates are
based on management's best knowledge of the events or actions
involved, actual outturns ultimately may differ from those
estimates. The interim information does not include all financial
risk management information and disclosures required in annual
financial statements; the information should be read in conjunction
with the financial information, as at 30 September 2021, summarised
in the 2021 Annual Report and Accounts. Section 6 below summarises
the most relevant of these.
The interim condensed consolidated financial information for the
six months ended 31 March 2022 and for the six months ended 31
March 2021 do not constitute statutory accounts as defined in
Section 434 of the Companies Act 2006 and are unaudited. The
financial information for the six months ended 31 March 2022
presents financial information for the consolidated group,
including the financial results of the Company's wholly owned
subsidiaries, i-solutions Global Limited and i-nexus (America) Inc.
Comparative figures in the Interim Report for the year ended 30
September 2021 have been taken from the Group's audited financial
statements on which the Group's auditors, Saffery Champness LLP,
expressed an unmodified opinion.
3. Segmental reporting
The Directors consider that there is one identifiable business
segment that is engaged in providing individual products or
services or a group of related products and services that comprise
the core business.
All of the Group's assets and operations are located in the UK
and USA.
4. Earnings per share
The calculation of basic and diluted loss per share for the six
months to 31 March 2022 was based upon the loss attributable to
ordinary shareholders of GBP282,703 (six months to 31 March 2021:
GBP228,941, year ended 30 September 2021: GBP734,932) and a
weighted average number of ordinary shares in issue of 29,571,605
(six months to 31 March 2021: 29,571,605, year ended 30 September
2021: 29,571,605), calculated as follows:
Weighted average number of ordinary shares
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2022 2021 2021
-------------
Loss for
the period
attributable
to equity
holders of
the Company (282,703) (228,941) (734,932)
------------------ ----------- ----------- -------------
Issued ordinary
shares at
start of
period/year 29,571,605 29,571,605 29,571,605
Weighted
average number
of shares
at end of
period/year 29,571,605 29,571,605 29,571,605
------------------ ----------- ----------- -------------
Earnings per share 0.010 0.008 0.025
5. Availability of Interim Report
Electronic copies of this Interim Report will be available on
the Group's website at www.i-nexus.com.
6. Principal risks and uncertainties
Although the directors seek to minimise the impact of risk
factors, the Group is subject to a number of such factors. Those
most relevant to the Group's performance in H2 are as follows:
Working capital
Whilst the Directors believe that the injection of funds from
the convertible bond issues last year has provided exibility to
satisfy the Group's near-term funding requirements, there can be no
guarantee as to the Group's longer term working capital
requirements and, therefore, the Group may need to seek additional
capital over and above that raised from the issue of the
Convertible Loan Notes. No assurance can be given as to the
availability of such additional capital at any future time or, the
terms upon which such additional capital would be available.
The Group's continuing viability in the longer term remains
dependent on its ability to secure new sales to existing and
potential customers. The Group prepares regular business forecasts
and monitors its projected cash flows, which are reviewed by the
Board. The scenarios and sensitivities demonstrate that there are
actions management can implement should the plans not deliver the
growth hoped for.
Customer churn
The Group has experienced falling revenues in relation to
certain customers in the past and in H1, albeit to a lesser extent.
The reasons for this are varied and the Group's historical ability
to invest in its customers was limited. While the investment in
customer retention activities is seeing benefits, customer churn is
still a risk for the Group and could affect the Group's trading and
financial position and prospects.
Implementation of Growth Strategy
Failure to successfully implement its growth strategies. The
Board recognises that executing the Group's strategy may be di cult
to implement/achieve and may not be as successful as planned.
Pressure on management, limitations on operational and nancial
resources, the potential insu ciency of demand for the Group's
products and a slower than anticipated market acceptance of the
Group's products could lead to failure to successfully implement
its strategies and so adversely a ect the Group's reputation,
prospects, results of operations, and its nancial condition.
Digitalising Strategy Execution
Failure of the market to accept the need/urgency to digitalise
their Strategy Execution (SE). A large proportion of the Group's
target market continues to use traditional methods and in-house
developed systems to assist in their SE. The Board believes the
market needs further education in the bene ts of digitalising SE.
Potential customers may prefer to "do nothing" and be unnecessarily
cautious about investing in the Group's software. Failure by the
Group to adequately explain the value proposition to increase the
market's readiness to accept the technology will lead to slower
than projected growth. The Groups marketing function supported by a
network of consulting partners work with potential customers to
educate them on the benefits the product can offer. Furthermore the
impact of COVID-19 is making the need to digitise strategy more
widely accepted.
Account Proliferation
Failure of our existing accounts to grow, resulting from
dissatisfaction with the product and/or deployment issues. An
important aspect of the Group's growth strategy is to proliferate
sales of its i-nexus software with existing customers as a result
of the natural evolution of the software use over time. Although
the Group has a number of examples where this has occurred in the
past, this is no guarantee that it will continue to happen at the
increasing rate predicted. Any failure of this anticipated account
proliferation to happen will a ect the Group's future success and
adversely a ect its business, prospects and results of operations
and nancial position. The Group's investment in its Success team
and the work undertaken by its development team to implement
feedback received from clients are designed to mitigate this risk
wherever possible.
7. Forward-looking statements
This announcement may include certain forward-looking
statements, beliefs or opinions, including statements with respect
to the Group's business, financial condition and results of
operations. These forward-looking statements can be identified by
the use of forward-looking terminology, including the terms
"believes", "estimates", "plans", "anticipates", "targets", "aims",
"continues", "expects", "intends", "hopes", "may", "will", "would",
"could" or "should" or, in each case, their negative or other
various or comparable terminology. These statements are made by the
Directors in good faith based on the information available to them
at the date of this announcement and reflect the Directors beliefs
and expectations. By their nature these statements involve risk and
uncertainty because they relate to events and depend on
circumstances that may or may not occur in the future. A number of
factors could cause actual results and developments to differ
materially from those expressed or implied by the forward-looking
statements, including, without limitation, developments in the
global economy, changes in government policies, spending and
procurement methodologies, and failure in health, safety or
environmental policies. No representation or warranty is made that
any of these statements or forecasts will come to pass or that any
forecast results will be achieved. Forward-looking statements speak
only as at the date of this announcement and the Group and its
advisers expressly disclaim any obligations or undertaking to
release any update of, or revisions to, any forward-looking
statements in this announcement. No statement in the announcement
is intended to be, or intended to be construed as, a profit
forecast or to be interpreted to mean that earnings per share for
the current or future financial years will necessarily match or
exceed the historical earnings. As a result, you are cautioned not
to place any undue reliance on such forward-looking statements.
8. Statement of Directors' Responsibilities
The Directors confirm to the best of their knowledge that:
i) The condensed interim financial information has been prepared
in accordance with IAS 34 as adopted by the European Union; and
ii) The interim management report includes a fair review of the
information required by the FCA's Disclosure and Transparency Rules
(4.2.7 R and 4.2.8 R).
Financial statements are published on the Group's website in
accordance with legislation in the United Kingdom governing the
preparation and dissemination of financial statements, which may
vary from legislation in other jurisdictions. The maintenance and
integrity of the Group's website is the responsibility of the
Directors. The Directors' responsibility also extends to the
ongoing integrity of the financial statements contained
therein.
This information is provided by RNS, the news service of the
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END
IR SEDSAAEESELI
(END) Dow Jones Newswires
May 30, 2022 02:01 ET (06:01 GMT)
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