TIDMACC
RNS Number : 9386O
Access Intelligence PLC
25 August 2017
25 August 2017
ACCESS INTELLIGENCE PLC
("Access Intelligence" or "the Group")
UNAUDITED INTERIM RESULTS
FOR
the six monthsED 31 may 2017
Access Intelligence Plc (AIM: ACC), a leader in corporate
communications and reputation management software, announces its
unaudited half year results for the six months ended 31 May
2017.
Restated
*
6 months 6 months
ended ended
31-May-17 31-May-16
GBP'000 GBP'000
Continuing operations
Revenue 4,129 5,143
========== ==========
EBITDA (1,264) (751)
========== ==========
Loss after tax (1,897) (1,068)
Profit/(loss) for the period
from discontinued operations
net of tax:
- From trading activities 154 (683)
- Profit on disposal of subsidiary
undertaking 584 1,664
---------- ----------
Total loss for period after
tax (1,159) (87)
========== ==========
Continuing and discontinued
operations
Basic loss per share (0.37)p (0.03)p
Diluted loss per share (0.37)p (0.03)p
Continuing operations
Basic loss per share (0.60)p (0.34)p
Diluted loss per share (0.60)p (0.34)p
*Restated - prior period comparatives have been restated to
disclose the results of AIControlPoint as discontinued
activities.
Highlights:
-- Significant improvements in both customer renewal rates and
new business sales performance in comparison with H1 2016,
resulting in a net GBP0.2 million increase in Vuelio's customer
annual contract value base by May 2017 and a further GBP0.1 million
increase by July 2017.
-- Investment of GBP0.9 million in development of the Vuelio
platform during the first six months of the year to deliver an
integrated, single-platform offering for both PR and public affairs
professionals.
-- The sale of AIControlPoint Limited ("AIControlPoint"),
formerly a wholly-owned subsidiary of Access Intelligence, was
completed on 16 March 2017. This divestment forms a key part of the
realignment of the Group's portfolio to focus on corporate
communications and reputation management software.
-- Cash balance at 31 May 2017 was GBP0.5 million (H1 2016:
GBP2.5 million). After the period end, the Group raised a further
GBP1.0 million through the issue of equity to institutional
shareholders and management.
Michael Jackson, Non-Executive Chairman, commented:
"The first half of 2017 has been one of significant progress by
the Group, with its realigned focus on the Vuelio brand to deliver
leading corporate communications and reputation management software
solutions.
With the completion of the integration and migration programme
at the end of Q1, our 2017 strategy has been largely one of
consolidation, providing a foundation for incremental growth from
2018 onwards. We have seen significant improvement in our ability
to retain business and in our success at winning new customers,
clear signs that our enhanced Vuelio platform is resonating with
both customers and prospects alike.
Customer numbers and monthly revenue from continuing operations
have both started to increase and management has continued to
deliver significant operational improvements to ensure that the
Group has a lean cost base to support growth in H2 2017 and into
2018."
For further information:
Access Intelligence plc 0843 659 2940
Michael Jackson (Non-Executive Chairman)
Joanna Arnold (CEO)
Allenby Capital Limited
David Worlidge / James Thomas 020 3328 5656
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation (EU) No
596/2014.
Chairman's Statement
I am pleased to announce our results for the six months ended 31
May 2017.
As outlined in our 2016 annual report and accounts, over the
last 18 months we have continued to realign the Access Intelligence
portfolio to position and support Vuelio as its flagship brand, one
poised to take advantage of significant opportunities in the
communications management market.
Throughout 2016 and Q1 2017, the Group focussed on migrating
almost 1,200 acquired customers onto the Vuelio platform, whilst
delivering an accelerated programme of development and product
upgrades for longstanding Vuelio customers. The full migration
programme was completed in Q1 2017 with the largest and most
complex customer systems being the last to migrate. The response to
the new platform from migrated customers has been overwhelmingly
positive, supported by a significant improvement in customer
renewal rates compared to 2016.
The improvement in customer renewal rates has been mirrored in
new business sales which have also seen a marked improvement year
on year. By July 2017, Vuelio's customer annual contract value base
had increased by GBP0.3 million and we envisage that this will
increase by another GBP0.3 million over the remaining four months
of the financial year.
Feedback from new customers has indicated that the Vuelio
platform provides them with an integrated suite of products which
they are unable to get elsewhere, creating a clear unique selling
point for the business.
Results for the half year
Revenue from continuing operations for the period was
GBP4,129,000 (H1 2016 restated: GBP5,143,000). The year on year
decrease was driven by some of the acquired customers choosing not
to migrate to the Vuelio platform, combined with a conscious
decision by management to exit non-profitable contracts. Recurring
revenue comprised 90.1% of total revenue (H1 2016 restated:
92.5%).
Gross margin from continuing operations was 55% (H1 2016
restated: 61%) although this also reflects GBP371,000 (H1 2016
restated: GBP411,000) of one-off costs associated with the
transitional hosting and migration of acquired customers. The gross
margin excluding these one-time costs was 64% (H1 2016 restated:
69%).
During the period, the Group continued to undertake
restructuring to finalise the migration programme and divest
non-core operations, reducing costs in the remaining business. The
full benefit of this restructuring will be seen in Q4 2017 and
beyond, with additional administrative expenses relating to this
programme during the period totalling GBP101,000 (H1 2016 restated:
GBP12,000).
Earnings before interest, tax, depreciation and amortisation
(EBITDA) from continuing operations fell to a loss of GBP1,264,000
(H1 2016 restated: loss of GBP751,000). Excluding the one-time
expenses referenced above, EBITDA loss from continuing operations
was GBP792,000 (H1 2016 restated: loss of GBP328,000). EBITDA has
deteriorated due to the reduction in revenue, offset by cost
savings made throughout the business. In addition, all research and
development activity was expensed during H1 2017 whilst GBP388,000
was capitalised in relation to this during H1 2016.
The Group's operating loss from continuing operations was
GBP1,897,000 (H1 2016 restated: GBP1,068,000). In arriving at the
operating loss, the Group has incurred:
-- GBP876,000 of research and development expenditure (H1 2016 restated: GBP613,000).
-- GBP461,000 of depreciation and amortisation charges (H1 2016 restated: GBP472,000).
-- GBP101,000 of restructuring costs (H1 2016 restated: GBP12,000).
The basic loss per share from continuing operations was 0.60p
(H1 2016 restated: loss 0.34p).
The Group had cash at the end of the period of GBP494,000 (H1
2016: GBP2,488,000). After the period end, the Group raised GBP1.02
million in July 2017 through the issue of new equity to
institutional shareholders and management.
Financial performance in H2 2017
Revenue from continuing operations in July 2017 was GBP704,000,
an 8% increase compared to March 2017 monthly revenue of
GBP653,000. Gross margin declined slightly from 66% to 65% over the
same period but total monthly gross profit increased by 5%. The
improvement in monthly revenue has been driven by the increase in
Vuelio's customer annual contract value base which we expect to
continue over the remainder of the financial year and into 2018.
Monthly revenue from continuing operations is anticipated to be
higher in November 2017 than it was in November 2016, continuing to
grow throughout 2018.
The full impact of restructuring activity will benefit the
Group's cost base from September 2017 onwards. The Group is
expecting annualised cost savings in excess of GBP1.2 million in
respect of operational spend excluding third party content and
hosting, restructuring and migration expenses between Q4 2016 and
Q4 2017.
Strategy
We are delivering on our 2017 strategy of consolidation while
beginning to capitalise on the short-term opportunities identified
in the UK market. In particular, we have won a number of clients
from competitors occupied by the fallout from M&A activity,
while closer integration of Vuelio's PR and public affairs
solutions has created a unique single-platform offering for new
business and for cross-sell and upsell into our installed client
base. We expect both themes to continue at least for the remainder
of 2017, as key competitors are subject to reputational damage and
an uncertain political climate sharpens existing appetites and
expands the market for public affairs services.
The arrival of the first Vuelio mobile applications not only
exceeded established market needs, but moreover sent a strong
signal of innovation intent, one to be underscored in the second
half of the year with the launch of an improved and
fully-integrated social media offering. Such mobile and social
engagement tools are essential additions to our portfolio and mark
important milestones on our roadmap for the increasingly networked
communications services that are expected to drive sustainable
growth through 2018 and beyond.
Disposal of AIControlPoint Limited
The sale of AIControlPoint was completed on 16 March 2017.
AIControlPoint is a provider of cloud-based crisis and incident
management solutions to highly regulated industries but was
considered non-core to the Group's strategic focus on SaaS in the
corporate communications and reputation management sector. The net
cash inflow received for the company after costs was GBP607,000 and
the divestment resulted in a Group profit on disposal of
GBP584,000.
Subsequent events
As announced, Access Intelligence raised GBP1,020,000 (before
expenses) by the issue of 31,384,615 Ordinary Shares at a price of
3.25p per share. The shares were admitted to trading on AIM,
effective 21 July 2017.
Michael Jackson
Non-executive Chairman
Access Intelligence Plc
Consolidated Statement of Comprehensive Income
for the 6 months ended 31 May 2017
Unaudited
Unaudited and restated Audited
6 months 6 months Year ended
ended ended
31-May-17 31-May-16 30-Nov-16
Continuing operations GBP'000 GBP'000 GBP'000
Revenue 4,129 5,143 9,598
Cost of sales (1,847) (1,990) (4,241)
----------- ------------- ------------
Gross profit 2,282 3,153 5,357
Administrative expenses (3,825) (4,017) (8,295)
Share of loss of associate (173) - (91)
Share-based payments (9) (18) (13)
----------- ------------- ------------
Operating loss (1,725) (882) (3,042)
Financial expense (172) (192) (395)
----------- ------------- ------------
Loss before tax (1,897) (1,074) (3,437)
Taxation credit - 6 (37)
----------- ------------- ------------
Loss for the period
from continuing operations (1,897) (1,068) (3,474)
Profit for the period
from discontinued operations 738 981 1,511
----------- ------------- ------------
Loss for the period (1,159) (87) (1,963)
Other comprehensive - - -
income
----------- ------------- ------------
Total comprehensive
loss for the period
attributable to the
owners of parent company (1,159) (87) (1,963)
----------- ------------- ------------
Earnings per share:
Continuing and discontinued Pence Pence Pence
operations
Basic loss per share (0.37)p (0.03)p (0.62)p
Diluted loss per share (0.37)p (0.03)p (0.62)p
Continuing operations
Basic loss per share (0.60)p (0.34)p (1.10)p
Diluted loss per share (0.60)p (0.34)p (1.10)p
Access Intelligence Plc
Consolidated Statement of Financial Position at 31 May 2017
Unaudited
Unaudited and restated Audited
6 months 6 months Year ended
ended ended
31-May-17 31-May-16 30-Nov-16
GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant and
equipment 81 173 100
Intangible assets 6,675 7,475 7,062
Investments in associates 361 - 534
Deferred tax asset 230 841 230
----------- ------------- ----------
Total non-current assets 7,347 8,489 7,926
Current assets
Trade and other receivables 3,416 3,518 2,565
Current tax receivables 333 - 436
Cash and cash equivalents 494 2,488 1,162
Assets classed as held
for sale - 358 381
----------- ------------- ----------
Total current assets 4,243 6,364 4,544
TOTAL ASSETS 11,590 14,853 12,470
Current liabilities
Trade and other payables 1,558 1,572 1,301
Accruals 969 819 941
Provisions 118 20 27
Deferred revenue 4,226 4,444 3,772
Interest bearing loans
and borrowings 1,374 1,277 1,374
Liabilities classed
as held for sale - 128 507
----------- ------------- ----------
Total current liabilities 8,245 8,260 7,922
Non-current liabilities
Provisions 264 401 374
Interest bearing loans
and borrowings 1,919 1,938 1,901
Deferred tax liabilities 230 330 230
----------- ------------- ----------
Total non-current liabilities 2,413 2,669 2,505
TOTAL LIABILITIES 10,658 10,929 10,427
----------- ------------- ----------
NET ASSETS 932 3,924 2,043
----------- ------------- ----------
Equity
Share capital 1,586 1,580 1,580
Treasury shares (148) (148) (148)
Share premium 1,491 1,458 1,458
Capital redemption reserve 191 191 191
Share option valuation
reserve 386 382 377
Equity reserve 255 255 255
Retained earnings (2,829) 206 (1,670)
----------- ------------- ----------
TOTAL EQUITY ATTRIBUTABLE
TO EQUITY SHAREHOLDERS 932 3,924 2,043
----------- ------------- ----------
Consolidated Statement of Changes in Equity
for the 6 months ended 31 May 2017
Share
Share Treasury Share Capital option Equity Retained Total
capital Shares premium redemption valuation reserve earnings
account reserve reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 December
2015 1,535 (148) 1,271 191 364 255 293 3,761
Issue of
share capital 45 - 187 - - - - 232
Total comprehensive
income for
the period - - - - - - (87) (87)
Share-based
payments - - - - 18 - - 18
At 31 May
2016 1,580 (148) 1,458 191 382 255 206 3,924
-------- --------- -------- ----------- ---------- -------- ---------- --------
Total comprehensive
income for
the period - - - - - - (1,876) (1,876)
Share-based
payments - - - - (5) - - (5)
At 30 November
2016 1,580 (148) 1,458 191 377 255 (1,670) 2,043
-------- --------- -------- ----------- ---------- -------- ---------- --------
Issue of
share capital 6 - 33 - - - - 39
Total comprehensive
income for
the period - - - - - - (1,159) (1,159)
Share-based
payments - - - - 9 - - 9
At 31 May
2017 1,586 (148) 1,491 191 386 255 (2,829) 932
-------- --------- -------- ----------- ---------- -------- ---------- --------
Consolidated Statement of Cash Flow
for the 6 months ended 31 May 2017
Unaudited
Unaudited and restated
6 months 6 months Audited
ended ended Year ended
31-May-17 31-May-16 30-Nov-16
GBP'000 GBP'000 GBP'000
Loss for the year attributable to shareholders (1,159) (87) (1,963)
Adjustments for:
Taxation - (6) 64
Depreciation and amortisation 464 531 1,078
Share option charge 9 18 13
Share of loss of associate 173 - 91
Financial expense 172 192 395
Profit on sale of AIControlPoint (584) - -
Profit on sale of AITrackRecord - - (585)
Profit on sale of Due North - (1,664) (1,664)
Operating cash outflow before working
capital changes (925) (1,021) (2,571)
(Increase)/decrease in trade and other
receivables (734) 254 934
Increase/(decrease) in trade and other
payables 446 (896) (1,228)
----------- ------------- ------------
Net cash outflow from operations (1,213) (1,658) (2,865)
Tax received 103 - -
----------- ------------- ------------
Net cash outflow from operating activities (1,110) (1,658) (2,865)
----------- ------------- ------------
Investing
Acquisition of PPE (17) (27) (17)
Cost of software development (38) (432) (579)
Disposal of Due North - 4,030 4,030
Less: cash and cash equivalents disposed
of - 77 77
Disposal of AITrackRecord - - 7
Less: cash and cash equivalents disposed
of - - (10)
Disposal of AIControlPoint 607 - -
Moved to Held for Sale - AITrackRecord - (177) -
----------- ------------- ------------
Net cash inflow from investing activities 552 3,471 3,508
----------- ------------- ------------
Financing
Interest paid (149) (185) (336)
Exercise of share options 39 237 232
Repayment of loan notes - (900) (900)
----------- ------------- ------------
Net cash outflow from financing activities (110) (848) (1,004)
----------- ------------- ------------
Net (decrease)/increase in cash (668) 965 (361)
Opening cash and cash equivalents 1,162 1,523 1,523
----------- ------------- ------------
Closing cash and cash equivalents 494 2,488 1,162
----------- ------------- ------------
Notes
1. Unaudited notes
Basis of preparation and accounting policies
The financial information for the six months to 31 May 2017 is
unaudited and was approved by the Board of Directors on 24 August
2017.
The interim financial statements do not include all of the
information required for full annual financial statements and
should be read in conjunction with the consolidated financial
statements for the year ended 30 November 2016.
The interim financial information for the six months ended 31
May 2017, including comparative financial information, has been
prepared on the basis of the accounting policies set out in the
last annual report and accounts, and in accordance with
International Financial Reporting Standards ("IFRS").
The preparation of the interim financial statements requires
management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported
amounts of assets, liabilities, income and expense. Actual results
may subsequently differ from those estimates.
In preparing the interim financial statements, the significant
judgements made by management in applying the Group's accounting
policies and key sources of estimation uncertainty were the same,
in all material respects, as those applied to the consolidated
financial statements for the year ended 30 November 2016.
The Group has elected to present comprehensive income in one
statement.
Going concern assumption
The Group manages its cash requirements through a combination of
operating cash flows and long term borrowings in the form of
convertible loan notes.
The Group's forecasts and projections, taking account of
reasonably possible changes in trading performance, show that the
Group should be able to operate within its existing cash deposits
and loan facilities.
The company has Convertible Loan Notes of GBP1,250,000 maturing
in December 2017 held by two major shareholders, GBP500,000 by
Elderstreet VCT (a company related to Chairman Michael Jackson) and
GBP750,000 by Unicorn AIM VCT plc.
These Convertible Loan Notes originally matured on or before 30
June 2015 however the holders have extended them on a number of
occasions to 31 December 2015, 31 December 2016 and in December
2016 the holders agreed to extend them to 31 December 2017. The
Board expects these holders to extend again in December 2017 if
requested to do so.
In addition, the Group announced on 18 July 2017 that it had
raised GBP1,020,000 (before expenses) through the issue of new
equity to existing shareholders.
Consequently, after making enquires, the Directors have a
reasonable expectation that the Group has adequate resources to
continue in operational existence for the foreseeable future.
Accordingly, they continue to adopt the going concern basis of
accounting in preparing the interim financial statements.
Information extracted from 2016 Annual Report
The financial figures for the year ended 30 November 2016, as
set out in this report, do not constitute statutory accounts but
are derived from the statutory accounts for that financial
year.
The statutory accounts for the year ended 30 November 2016 were
prepared under IFRS and have been delivered to the Registrar of
Companies. The auditors reported on those accounts. Their report
was unqualified, did not draw attention to any matters by way of
emphasis and did not include a statement under Section 498(2) or
498(3) of the Companies Act 2006.
2. Earnings per share
The calculation of earnings per share is based upon the loss
after tax for the respective period, for continuing operations
only. The weighted average number of ordinary shares used in the
calculation of basic earnings per share is based upon the number of
ordinary shares in issue in each respective period.
The impact of both share options granted under the company's
share option schemes and convertible loan notes are anti-dilutive
so the weighted average number of ordinary shares used in the
calculation of diluted earnings per share is the same as for basic
earnings per share.
This has been computed as follows:
Continuing
and discontinued 6 months 6 months 6 months 6 months Year Year
operations ended ended ended ended ended ended
------------------- ------------ ------------ ------------ ------------ ------------ ------------
31-May-17 31-May-17 31-May-16 31-May-16 30-Nov-16 30-Nov-16
------------------- ------------ ------------ ------------ ------------ ------------ ------------
Basic Diluted Basic Diluted Basic Diluted
------------------- ------------ ------------ ------------ ------------ ------------ ------------
Loss after
tax (GBP'000) (1,159) (1,159) (87) (87) (1,963) (1,963)
------------------- ------------ ------------ ------------ ------------ ------------ ------------
Number
of shares 316,783,619 316,783,619 314,222,395 314,222,395 315,301,844 315,301,844
------------------- ------------ ------------ ------------ ------------ ------------ ------------
Loss per
share
(pence) (0.37) (0.37) (0.03) (0.03) (0.62) (0.62)
------------------- ------------ ------------ ------------ ------------ ------------ ------------
Basic Diluted Basic Diluted Basic Diluted
------------------- ------------ ------------ ------------ ------------ ------------ ------------
Continuing
operations
------------------- ------------ ------------ ------------ ------------ ------------ ------------
Loss after
tax (1,897) (1,897) (1,068) (1,068) (3,474) (3,474)
------------------- ------------ ------------ ------------ ------------ ------------ ------------
Number
of shares 316,783,619 316,783,619 314,222,395 314,222,395 315,301,844 315,301,844
------------------- ------------ ------------ ------------ ------------ ------------ ------------
Loss per
share
(pence) (0.60) (0.60) (0.34) (0.34) (1.10) (1.10)
------------------- ------------ ------------ ------------ ------------ ------------ ------------
3. Disposal of AIControlPoint Limited
On 14 March 2017, Access Intelligence Plc transferred the trade
and assets of its branch AIControlPoint to its subsidiary company
formed during the year, AIControlPoint Limited. On 16 March 2017,
Access Intelligence Plc disposed of 100% of the issued share
capital of AIControlPoint Limited for a consideration totalling
GBP745,000. Group profit on disposal of the subsidiary was
GBP584,000.
The net assets of AIControlPoint Limited at the date of disposal
were as follows:
16-Mar-17
GBP'000
Property, plant and
equipment 8
Trade and other receivables 116
Other debtors and
prepayments 50
Deferred tax asset 6
Bank balances
and cash -
Trade and other
payables (7)
Deferred revenue (239)
Attributable
goodwill 89
------------------------
23
Transaction costs associated with disposal 138
Gain on disposal 584
Total consideration
(satisfied by cash) 745
Less: Cash and cash equivalents disposed
of -
Transaction costs associated with
disposal (138)
------------------------
Net cash inflow arising on disposal 607
========================
4. Events after the Balance Sheet date
On 18 July 2017, Access Intelligence Plc announced that it had
raised GBP1,020,000 (before expenses) by the issue of 31,384,615
Ordinary Shares at a price of 3.25p per share. The shares were
admitted to trading on AIM, effective 21 July 2017.
This statement will be available at the Company's registered
office at Longbow House, 20 Chiswell Street, London EC1Y 4TW and on
the Company's website www.accessintelligence.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR OKQDDQBKDPFB
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