TIDMOSI
RNS Number : 7987E
Osirium Technologies PLC
21 July 2016
For immediate release
21 July 2016
Osirium Technologies plc
("Osirium" or "Group")
Interim Results
Osirium Technologies plc (AIM: OSI.L), a UK based cyber-security
software provider, today announces its maiden unaudited interim
results for the six months ended 30 April 2016.
Operational highlights
-- Admitted to AIM in April 2016 raising GBP5.1 million net of
expenses via a placing of new ordinary shares
-- Net proceeds of the placing have enabled the Group to appoint
additional staff members, fund an increase in sales and marketing
activity and invest in the continued research and development of
new and enhanced software modules
-- Next generation Privileged Account management solution PAM
2.0 launched in February 2016 has resulted in a significant uplift
in customer interest and brand recognition
-- Promising start to the current financial year, strong and
growing pipeline of new customer prospects with significant
contracts in sight for 2016
-- Recruitment of sales, marketing and technical resource in line with plans
Financial summary
-- Total Revenue of GBP162,000 (2015: GBP175,000), comprising:
o SaaS Revenue of GBP158,000 (2015: GBP149,000)
o Professional Services Revenue of GBP4,000 (2015:
GBP26,000)
-- Total invoiced sales of GBP206,000 (2015: GBP142,000)
-- Operating loss of GBP513,000 (2015: GBP373,000), reflecting
increased investment in sales and marketing
-- Balance sheet strengthened - Total Shareholders' Equity of GBP5,331,000 (2015: GBP904,000)
-- Cash and cash equivalents at 30 April 2016 of GBP4,939,000 (2015: GBP498,000)
David Guyatt, Chief Executive Officer, commented:
"I am pleased to announce our first set of results as an AIM
company. The Board is grateful for the support from our existing
shareholders together with the funding provided in April by our new
investors as part of our IPO. The Group is already benefiting from
the impact of its admission with a strengthened balance sheet and a
raised profile in the marketplace. This has helped generate a
strong and growing pipeline of new business prospects and we
believe that there are significant opportunities to take advantage
of the thriving cyber-security market and establish a leading
position in the industry."
For further information:
Osirium Technologies plc Tel: +44 (0) 118
David Guyatt, Chief Executive 324 2444
Officer
Rupert Hutton, Chief Financial
Officer
www.osirium.com
Panmure Gordon (UK) Limited Tel: +44 (0) 20 7886
(Nominated Adviser and Broker) 2500
Fred Walsh / Peter Steel
/ James Greenwood /
William Wickham - Corporate
Finance
Charles Leigh-Pemberton
- Corporate Broking
Media enquiries:
Hollins Communications Tel: +44 (0) 7764
Sarah Hollins 947137
Photography
Photography is available, please contact Sarah Hollins at
sarah@hollinscommunications.co.uk
Notes to Editors
Osirium Technologies plc (AIM: OSI.L), is a UK based
cyber-security software provider. Osirium protects critical IT
assets, infrastructures and devices by preventing targeted
cyber-attacks from directly accessing Privileged Accounts, removing
unnecessary access and powers of Privileged Account users,
deterring legitimate Privileged Account users from abusing their
roles and containing the effects of a breach if one does
happen.
Osirium has defined and delivered PAM 2.0, which the Directors
view as the next generation Privileged Account management solution.
The team has developed the concept of Virtual Air Gap to separate
users from passwords, with Osirium's Privileged Task Management
module further strengthening Privileged Account security and
delivering impressive return on investment benefits for
customers.
Founded in 2008 and with its headquarters in Reading, UK, the
Group was admitted to AIM in April 2016. For further information
please visit www.osirium.com
Chief Executive's Review
Introduction
The six months under review have been transformational for the
Group, culminating with its admission to AIM in April 2016. On
admission, Osirium successfully raised GBP5.1 million net of
expenses which has provided the Group with the capital to continue
the growth of the business through the building out and development
of relationships with existing and new customers alike in the
global cyber-security market. The funds raised have, in addition,
enabled the Group to appoint additional staff members, support
increased expenditure in the execution of the Group's sales and
marketing strategy and invest in the continued research and
development of software modules. Osirium is already benefiting from
the impact of its admission to AIM with a strengthened balance
sheet and a raised profile in the marketplace.
Financial summary
Osirium's loss before tax for the six months to 30 April 2016
was GBP513,000, compared with a loss of GBP373,000 for the six
months to 30 April 2015.
Revenue was GBP162,000 compared with GBP175,000 in the same
period of 2015, however SaaS revenue was up 6% to GBP158,000 for
the six months to 30 April 2016 from GBP149,000 for the same period
in 2015. The balance of revenue in each period was for chargeable
professional services. Invoiced sales during the period increased
45% to GBP206,000 (2015: GBP142,000).
As at 30 April 2016, the Group had cash balances of GBP4,939,000
(2015: GBP498,000).
The Group continued to increase its investment in research and
development during the period, with GBP229,000 capitalised in the
period (2015: GBP188,000), an increase of 22%, which has been
focussed on refining and further developing our next generation
Privileged Account management solution PAM 2.0 proposition and
working to meet new and prospective clients' expectations. The
Group expects SaaS revenues to increase further during the
remainder 2016 and, with the addition of extra consultancy
resource, increased service revenues are also being targeted.
Business Review
Customers and marketing
Osirium places significant emphasis on marketing campaigns,
including on-line and digital. During the first half, the Group
continued to attend numerous global exhibitions, including the PCI
Show for the Payment Card Industry and the IDM (Identity
Management) conference in London and the NITEC event in Estonia
organised by the NATO Communications & Information Agency. In
February 2016, as a means of marketing the differentiating factors
of the Group's offering compared with competitor products, Osirium
introduced its PAM 2.0 brand using the RSA event in San Francisco
as the launch platform.
Building on the Group's reputation with its existing customers,
which include blue chip enterprises in the defence and
telecommunications industries, Managed Security Service Providers
(MSSPs) and the financial services sector, Osirium plans to follow
a more aggressive sales and marketing strategy through an increase
in the size of its sales force. To this end, the Group has hired
three new sales and marketing people since 1 November 2015, with
further recruitment expected in this area over the coming
months.
As part of its sales and marketing strategy, Osirium will also
seek to enhance the profile of the Group's proposition through its
PAM 2.0 brand campaign. Osirium has received a positive response
from new and existing customers to PAM 2.0 and looks forward to
updating shareholders in due course.
The Group also plans to increase growth through cross and
up-selling its software range. Identifying opportunities to
increase the number of devices used per client and sell more deeply
into its existing customers, for example into new operating
divisions or geographical locations, will be two key focus
areas.
In addition, the Group will seek to expand its presence into new
industry sectors such as banking, insurance and critical national
infrastructure as well as to develop strategic partnerships with
MSSPs, strategic integrators and "The Big 4" accountancy firms.
This activity has gathered momentum post the period end and,
earlier this month, Osirium announced that it had been appointed as
a Vendor Alliance Partner for SailPoint's Identity Governance
solution. The Board views the agreement of commercial partnerships
with businesses such as SailPoint, acknowledged by Gartner as a
leader in identity governance and administration, as strategically
important for the Group.
The increased spend on branding and marketing has also continued
after the period which, coupled with the Group's admission to AIM,
have helped to raise Osirium's profile in the marketplace and
generate a strong and growing pipeline of new business
opportunities.
Research and development
Since the Group's admission in April 2016, Osirium has invested
in additional research and development resources and doubled the
team to accelerate delivery of customer-driven functionality.
Recruitment of technical resource also remains on target. Taking
into account the new hires made in this area along with the sales
and marketing recruitment referred to above, total headcount across
the Group is now 23, compared with 15 at 31 October 2015.
Osirium intends to continue expanding its software portfolio in
consultation with customers and in response to their feedback. The
Group plans to develop additional modules that it will be able to
license to customers and to build out the functionality and
features of its Privileged Account Management, Privileged Task
Management and Privileged Session Recorder modules. Osirium will
also continue to develop APIs for technology partnerships and
software alliances.
Legislation
Clearly, any new IT laws, regulations and best practice
requirements influences how Privileged cyber-threats are perceived
and the value of those solutions which combat such attacks. The
General Data Protection Regulation ("GDPR") and the Network and
Information Security Directive ("NIS") are the two most recent
pieces of European driven legislation, which provide clear
directives for organisations and institutions to follow in the
event of a cyber-attack.
On 17 May 2016, the European Council adopted the Network and
Information Security Directive ("NIS"), which forms a part of the
European Commission's EU Cybersecurity Strategy, which will operate
alongside its Digital Single Market Initiative. The purpose of NIS
will be to increase EU Member State co-operation on cyber-security
and to impose new incident reporting requirements on organisations.
The Board believes that such legislation will create opportunities
for the Company in the global cyber-security marketplace,
irrespective of the UK membership of the European Union.
Current Trading and Outlook
The fundraising has provided the Group with the capital to
continue the growth of the business through the building out and
development of relationships with existing and new customers alike.
We will continue to build momentum and the value of Osirium's
cyber-security PAM 2.0 brand which will continue to feature heavily
in the Group's marketing campaigns going forward. This will be
supported by an increased, experienced team of sales and marketing
professionals and further investment in research on product
development. Osirium also has three patent applications pending.
Subject to grant, the Group believes that these patents will force
potential entrants to invest time and money in the development of
markedly different software solutions.
The Directors believe that there is a significant opportunity
for the Group to take advantage of the thriving cyber-security
market to establish a leading position in the Privileged Account
security management software vertical. We have started the first
six months of the current financial year well with a strong and
growing pipeline of new business opportunities and continued
progress on achieving our objective of expanding our sector focus.
The Group is well placed to continue this success and deliver
shareholder value.
David Guyatt
Chief Executive Officer
21 July 2016
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
6 Months 6 Months 12 Months
to to to
30-Apr-16 30-Apr-15 31-Oct-15
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
CONTINUING OPERATIONS
Revenue 162,243 175,039 290,150
Administrative
expenses (675,366) (532,492) (1,137,288)
------------ ------------ ------------
OPERATING
LOSS (513,123) (357,453) (847,138)
Finance
costs - (15,652) (9,986)
Finance
income 354 72 72
------------ ------------ ------------
LOSS BEFORE
TAX (512,769) (373,033) (857,052)
Income tax
credit - - 121,046
------------ ------------ ------------
LOSS FOR THE PERIOD
ATTRIBUTABLE TO
THE OWNERS OF OSIRIUM
TECHNOLOGIES PLC (512,769) (373,033) (736,006)
============ ============ ============
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
6 Months 6 Months 12 Months
to to to
30-Apr-16 30-Apr-15 31-Oct-15
(Unaudited) (Unaudited) (Audited)
GBP GBP GBP
ASSETS
NON-CURRENT ASSETS
Intangible
assets 838,785 801,245 793,256
Property, plant
& equipment 27,199 6,976 6,439
------------ ------------ ------------
CURRENT
ASSETS
Trade and other
receivables 109,519 165,990 154,647
Cash and cash
equivalents 4,938,673 498,190 273,486
------------ ------------ ------------
5,048,192 664,180 428,133
------------ ------------ ------------
TOTAL ASSETS 5,914,176 1,472,401 1,227,828
============ ============ ============
LIABILITIES
CURRENT LIABILITIES
Trade and other
payables 418,874 404,962 365,041
------------ ------------ ------------
418,874 404,962 365,041
------------ ------------ ------------
NON-CURRENT LIABILITIES
Deferred
tax 163,904 163,904 163,288
------------ ------------ ------------
163,904 163,904 163,288
------------ ------------ ------------
TOTAL LIABILITIES 582,778 568,866 528,329
------------ ------------ ------------
EQUITY
SHAREHOLDERS
EQUITY
Called up share
capital 103,944 65,482 65,482
Share premium 5,069,063 - -
Share option
reserve 277,805 184,263 240,662
Merger reserve 4,008,592 3,906,054 4,008,592
Retained
earnings (4,128,006) (3,252,264) (3,615,237)
------------ ------------ ------------
TOTAL EQUITY ATTRIBUTABLE
TO THE
OWNERS OF OSIRIUM TECHNOLOGIES
PLC 5,331,398 903,535 699,499
------------ ------------ ------------
TOTAL EQUITY AND LIABILITIES 5,914,176 1,472,401 1,227,828
============ ============ ============
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Called
up Share
share Retained Share Merger option Total
capital earnings premium reserve reserve equity
GBP GBP GBP GBP GBP GBP
Balance at 1
November 2014 65,482 (2,879,231) - 2,922,100 184,263 292,614
Changes in
Equity
Merger reserve
adjustment - - - 983,954 - 983,954
Total comprehensive
loss - (373,033) - - - (373,033)
Share option
charge - - - - - -
-------- ------------ ---------- ---------- -------- ----------
Balance at 30
April 2015 65,482 (3,252,264) - 3,906,054 184,263 903,535
======== ============ ========== ========== ======== ==========
Balance at 1
November 2014 65,482 (2,879,231) - 2,922,100 184,263 292,614
Changes in
Equity
Merger reserve
adjustment - - - 1,086,492 - 1,086,492
Total comprehensive
loss - (736,006) - - - (736,006)
Share option
charge - - - - 56,399 56,399
-------- ------------ ---------- ---------- -------- ----------
Balance at 31
October 2015 65,482 (3,615,237) - 4,008,592 240,662 699,499
======== ============ ========== ========== ======== ==========
Balance at 1
November 2015 65,482 (3,615,237) - 4,008,592 240,662 699,499
Changes in
Equity
Issue of share
capital 38,462 - 5,961,537 - - 5,999,999
Issue costs - - (892,474) - - (892,474)
Total comprehensive
loss - (512,769) - - - (512,769)
Share option
charge - - - - 37,143 37,143
-------- ------------ ---------- ---------- -------- ----------
Balance at 30
April 2016 103,944 (4,128,006) 5,069,063 4,008,592 277,805 5,331,398
======== ============ ========== ========== ======== ==========
CONSOLIDATED STATEMENT OF CASHFLOWS
6 Months 6 Months 12 Months
to to to
30-Apr-16 30-Apr-15 31-Oct-15
(Unaudited) (Unaudited) (Unaudited)
GBP GBP GBP
Cash flows from operating
activities
Cash generated from operations
(note 12) (309,915) (9,408) (257,218)
Interest
paid - (15,652) (9,985)
Tax received/(paid) 120,430 - 134,572
------------ ------------ ------------
Net cash from operating
activities (189,485) (25,060) (132,631)
------------ ------------ ------------
Cash flows from investing
activities
Purchase of intangible
fixed assets (228,882) (187,660) (404,385)
Purchase of tangible
fixed assets (24,325) - (2,944)
Interest
received 354 72 72
------------ ------------ ------------
Net cash from investing
activities (252,853) (187,588) (407,257)
------------ ------------ ------------
Cash flows from financing
activities
Loans repaid in
period - (323,737) -
Share issue (net
of issue costs) 5,107,525 983,954 762,753
------------ ------------ ------------
Net cash from financing
activities 5,107,525 660,217 762,753
------------ ------------ ------------
Increase/(decrease) in
cash and cash equivalents 4,665,187 447,569 222,865
Cash and cash equivalents
at beginning of year 273,486 50,621 50,621
------------ ------------ ------------
Cash and cash equivalents
at end of year 4,938,673 498,190 273,486
============ ============ ============
1. GENERAL INFORMATION
Osirium Technologies PLC was incorporated on 3 November 2015,
and registered and domiciled in England and Wales with its
registered office located at One Central Square, Cardiff CF10
1FS.
The principal activity of the Group in the periods under review
was that of the development of security software.
2. BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES
Basis of Preparation
The Group financial information is presented in pounds sterling
which is the Group's presentational currency and all values are
rounded to the nearest whole pound.
The financial information does not comprise statutory accounts
within the meaning of section 434 of the Companies Act 2006. The
financial information together with the comparative information for
the six months ended 30 April 2015 are unaudited with the audited
information included for the year ended 31 October 2015.
The financial information was approved by the Board of Directors
for issue on 20 July 2016.
Accounting Policies
The accounting policies used in the preparation of the financial
information for the six months ended 30 April 2016 are in
accordance with the recognition and measurement criteria of the
International Financial Reporting Standards as adopted by the
European Union ('IFRS') and are consistent with those which will be
adopted in the annual financial statements for the fourteen months
ending 31 December 2016.
Merger Accounting
On 6 April 2016 Osirium Technologies PLC acquired Osirium
Limited ("Osirium"). This transaction did not meet the definition
of a business combination as set out in IFRS 3. It is noted that
such transactions are outside the scope of IFRS 3 and there is no
other guidance elsewhere in IFRS covering such transactions. IAS 8
Accounting Policies, Changes in Accounting Estimates and Errors,
requires that where IFRS does not include guidance for a particular
issue, the Directors may also consider the most recent
pronouncement of other standard setting bodies that use a similar
conceptual framework to develop accounting standards when
developing an appropriate accounting policy. In this regard, it is
noted that the UK accounting Standards Board has, in issue, an
accounting standard covering business combinations (FRS6) that
permits the use of the merger accounting principles for such
transactions. The Directors have therefore chosen to adopt these
principles and the financial information has been prepared as if
Osirium had been owned and controlled by the company throughout the
year ended 31 October 2015 and the periods ended 30 April 2015 and
30 April 2016. Accordingly, the assets and liabilities of Osirium
have been recognised at their historical carrying amounts, the
results for the periods prior to the date the company legally
obtained control have been recognised and the financial information
and cash flows reflect those of Osirium. The amount recognised in
equity is based on the historical carrying amounts recognised by
Osirium. However, the share capital balance is adjusted to reflect
the equity structure of the outstanding share capital of the
Company, and any corresponding differences are reflected as an
adjustment to a merger reserve.
Going Concern
As part of their going concern review the Directors have
followed the guidelines published by the Financial Reporting
Council entitled "Going Concern and Liquidity Risk Guidance for UK
Companies 2009".
The Directors have prepared detailed financial forecasts and
cash flows looking beyond 12 months from the date of Interim
Report. In developing these forecasts the Directors have made
assumptions based upon their view of the current and future
economic conditions that will prevail over the forecast period.
On the basis of the above projections, the Directors are
confident that the group has sufficient working capital to honour
all of its obligations to creditors as and when they fall due.
Accordingly, the Directors continue to adopt the going concern
basis in preparing the Interim Statement.
Intangible Assets
An Internally-generated, development intangible asset arising
from Osirium's product development is recognised if, and only if,
Osirium can demonstrate all of the following:
-- The technical feasibility of completing the intangible asset
so that it will be available for use of sale.
-- Its intention to complete the intangible asset and use or sell it.
-- Its ability to use or sell the intangible asset
-- How the intangible asset will generate probable future economic benefits
-- The availability of adequate technical, financial and other
resources to complete the development and to use or sell the
intangible asset
-- Its ability to measure reliably the expenditure attributable
to the intangible asset during its development.
Internally-generated development intangible assets are amortised
on a straight-line basis over their useful lives. Amortisation
commences in the financial year of capitalisation. Where no
internally-generated intangible asset can be recognised,
development expenditure is recognised as an expense in the period
in which it is incurred.
Development costs 20% per annum, straight line
Share-based Payments
Osirium issues equity-settled share-based payments to certain
employees and others under which Osirium receives services as
consideration for equity instruments (options) in Osirium.
Equity-settled share-based payments are measured at fair value at
the date of grant by reference to the fair value of the equity
instruments granted. The fair value determined at the grant date of
equity-settled share-based payments is recognised as an expense in
Osirium's Statement of Comprehensive Income over the vesting period
on a straight-line basis, based on Osirium's estimate of the number
of instruments that will eventually vest with a corresponding
adjustment to equity. The expected life used in the valuation is
adjusted, based on management's best estimate, for the effect of
non-transferability, exercise restrictions, and behavioural
considerations.
Non-vesting and market vesting conditions are taken into account
when estimating the fair value of the options at grant date.
Service and non-market vesting conditions are taken into account by
adjusting the number of options expected to vest at each reporting
date.
When the options are exercised Osirium issues new shares. The
proceeds received net of any directly attributable transaction
costs are credited to share capital (nominal value) and share
premium.
3. INTANGIBLE FIXED ASSETS
Development
Costs
GBP
Cost or valuations:
At 1 November 2014 1,906,186
Additions to 30
April 2015 187,660
------------
Cost c/f as at
30 April 2015 2,093,846
============
At 1 November 2014 1,906,186
Additions to 31
October 2015 404,385
------------
Cost c/f as at
31 October 2015 2,310,571
============
At 1 November 2015 2,310,571
Additions to 30
April 2016 228,882
------------
Cost c/f as at
30 April 2016 2,539,453
============
Amortisation:
At 1 November 2014 1,110,473
charge to 30 April
2015 182,128
------------
Amortisation c/f as
at 30 April 2015 1,292,601
============
At 1 November 2014 1,110,473
Charge to 31 October
2015 406,842
------------
Amortisation as at 31
October 2015 1,517,315
============
At November
2015 1,517,315
Charge to 30 April
2016 183,353
------------
Amortisation as at 30
April 2016 1,700,668
============
Carrying
Amount:
At 30 April
2015 801,245
============
At 31 October
2015 793,256
============
At 30 April
2016 838,785
============
All development costs are amortised over their estimated useful
lives, which is on average 5 years.
Amortisation is charged in full in the financial year of
capitalisation.
All amortisation has been charged to administrative expenses in
the statement of comprehensive income and total comprehensive
loss.
4. RECONCILIATION OF LOSS BEFORE INCOME TAX TO CASH GENERATED FROM OPERATIONS
6 months 6 months Year
ended ended ended
30-Apr-16 30-Apr-15 31-Oct-15
GBP GBP GBP
Loss before income
tax (512,769) (373,033) (857,052)
Depreciation
charges 3,569 2,545 6,025
Amortisation
charges 183,353 182,128 406,843
Share option
reserve 37,143 - 56,399
---------- ---------- ----------
Finance
costs - 15,652 9,986
Finance
income (354) (72) (72)
---------- ---------- ----------
(289,058) (172,780) (377,871)
(Increase)/decrease in
trade and other receivables (81,029) 52,619 49,813
Increase/(decrease) in
trade and other payables 60,172 110,753 70,842
---------- ---------- ----------
Cash generated from
operations (309,915) (9,408) (257,216)
========== ========== ==========
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR DBLFLQDFFBBV
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