TIDMACT
RNS Number : 5080M
Actual Experience PLC
24 May 2022
24 May 2022
Actual Experience plc
(the "Company" or "Actual Experience" or "Actual")
UNAUDITED CONSOLIDATED INTERIM RESULTS
for the six months ended 31 March 2022
Components in place for transition from start-up to scaleup
Actual Experience plc (AIM: ACT), the Digital Workplace
Management System (Analytics-as-a-Service) company, announces its
unaudited consolidated interim results for the six months ended 31
March 2022.
Financial Highlights
-- Revenue of GBP0.82m (H1 FY21: GBP0.89m)
-- Gross profit of GBP0.35m (H1 FY21: GBP0.45m)
-- Operating loss of GBP2.84m (H1 FY21: GBP2.19m)
-- Loss per share of 4.97p (H1 FY21: loss per share of 4.29p)
-- Cash and cash equivalents at 31 March 2022 of GBP5.37m (30 September 2021: GBP8.22m)
Operational Highlights
-- Direct sales team has increased focus on direct customer engagement
-- Appointments of Chief Product Officer and Chief Revenue
Officer have strengthened executive team
-- New Digital Workplace Management System (DWMS) portal, soft
launched following consultations with existing customers
-- New go-to-market strategy developed to speed up the conversion of pipeline to customers
Current trading and outlook
-- Components in place for transition from a start-up to a scaleup
-- Sales activity focus on selling the enhanced product offering
-- Pipeline of new business prospects building steadily, with
focus on converting these opportunities into recurring revenue
streams
-- Lower cost base expected in the second half of the year
Dave Page, CEO of Actual Experience plc, said: "Actual
Experience now has the components in place for transitioning from
being a start-up to a scaleup business. With the new DWMS portal,
which harnesses our unique Human Experience (HX) insights, we have
a better defined product that has been well received by actual and
prospective customers. With this improved product development, we
are working to scaleup the business by focusing on direct sales and
marketing efforts to convert our pipeline of global blue-chip
opportunities into revenue generating long term customers.
Whilst the current macro environment has accelerated the need
for our product offering, as enterprises embrace new and hybrid
ways of working, we have also been impacted by the lengthening of
procurement processes at these large businesses. We remain
confident that the second half of the year will see improved
momentum as our product and sales investments bear fruit."
Kirsten English, Chair of Actual Experience plc, said: " Our
primary focus is to generate more sales. To this end we have
recently invested in a direct sales force, invested in marketing,
hired a Chief Product Officer and a Chief Revenue Officer to bring
onboard further business. Our new portal provides clear 'quant
driven' answers to the questions that the 'C' suite and Board in
corporations are asking about the hybrid workplace; how much time
is our company wasting due to the inefficiency of digital tools and
how do we fix this? How does digital inefficiency impact the
wellbeing of our people? Where are our people working from and what
does this mean in terms of our real estate outlook? Actual
Experience's analytics service pinpoints precisely where companies
can invest to make the greatest positive impact on employee
efficiency and wellbeing and critically we can also measure the
resultant return on that investment ."
Enquiries:
Actual Experience plc Tel: +44 (0)203 128
Dave Page, Chief Executive Officer 8666
Steve Bennetts, Chief Financial Officer
Singer Capital Markets Advisory LLP Tel: +44 (0)207 496
Shaun Dobson 3000
Will Goode
MHP Communications act@mhpc.com Tel: +44 (0)203 128
Reg Hoare 8666
James Bavister
Will Mullan
About Actual Experience
Actual Experience's goal is to make the digital world work for
everyone, everywhere, all of the time. As the working world evolves
post-pandemic, the global shift to a flexible hybrid model has
brought with it a significant challenge; how do businesses create
an environment that gives their people what they need to thrive,
whilst protecting the commercial efficiency of the business and
driving growth at the same time?
By underpinning their strategic decision making with our
data-driven insights, our customers gain the clarity and confidence
needed to build sustainable digital ecosystems within their
organisations - delivering both a great employee experience and
increasing the efficiency of the digital workplace. Powered by over
10 years of academic Human Experience research, our Digital
Workplace Management System doesn't need any interaction with
employees to provide a unique and highly actionable dataset that
People, Technology and Finance leaders can rely upon to plan
impactful projects against their most critical agenda items
including wellbeing, profitability, DE&I and ESG
initiatives.
Actual Experience is listed on the London Stock Exchange (AIM:
ACT). Our corporate headquarters are in Bath, UK. Actual
Experience's unique and patented digital analytics-as-a-service is
founded on cutting-edge research from Queen Mary University of
London.
For further information please visit
www.actual-experience.com
BUSINESS REVIEW
The start of the financial year for Actual Experience saw two
new contract wins which were announced in November 2021. Both
contracts were for Business Impact Assessments (BIA) and provided
clear validation of the quality and relevance of the Company's
technology offering. The first of these new contract wins was with
a Channel Partner to use across its own organisation, assisting in
its new hybrid working policy, as well as providing a powerful
reference as it sells to its own customers. The second contract was
with a leading global food and beverages business. These two
contract wins were the third and fourth awarded to the business
since its pivot to the professional services model.
Having been awarded these two new BIA wins, the Company is now
working to convert them to Continuous Improvement (CI) contracts,
as part of our 'land and expand' strategy, as we have been doing
with all our new customers. Since November of last year,
significant progress has been made in converting these customers to
CI contracts. However, the sales team has been finding that in the
current climate of macroeconomic and geopolitical uncertainty, the
procurement processes for the larger multinational enterprises we
are selling into has been lengthened.
Despite the increasing length of time it is taking to convert
these contracts into orders, the board is encouraged by the
potential within the pipeline.
As part of our preparedness for transition from start-up to
scaleup, we have recently significantly bolstered our executive
team with two experienced hires to help drive growth.
Firstly, we recruited Scarlet Jeffers as Chief Product Officer
to lead the development of our new product offering and to be
responsible for driving a deep understanding of the needs of our
customers and the wider market into our development roadmap.
Scarlet's work has directly led to the development of a new portal,
greatly improving the user experience for our customers and
delivering a better overall product-market fit. With the newly
defined product scheduled for launch in the coming months, we will
be able to fully implement our new go-to-market strategy.
Secondly, we appointed Roy Jugessur as Chief Revenue Officer.
This role will strengthen our customer engagement, sales, and
marketing functions as we build out our pipeline of new business
opportunities.
As previously announced, a long-standing contract via a Channel
Partner (based on our legacy offering) has not been renewed due to
a change in customer strategy. This contract delivered revenues of
GBP1.2m in FY2021 and GBP0.4m in the current fiscal year.
Board Changes
As previewed in our announcement in September 2021, Kirsten
English was appointed as Chair, with effect from the date of the
AGM in March this year. Kirsten has extensive experience relevant
to our business, particularly in this growth phase as we transition
from start-up to scaleup. In the first months of her tenure,
Kirsten has been actively engaging with the Company's largest
shareholders, to ensure an open and collaborative dialogue.
Market
As business emerges from the Covid-19 pandemic, we are seeing a
growing number of examples, especially in larger global blue-chip
companies, where management is embracing the concept of new ways of
working, in recognition and that a hybrid working environment can
be more cost efficient for their businesses, as well as increasing
productivity and well-being for their staff. This move to a new way
of working directly benefits Actual Experience, as a customer might
effectively go from having 100 offices to 100,000 home offices,
with a commensurate reduction in the visibility and control of the
workplace.
Our DWMS and our unique Human Experience analysis gives our
customers greatly improved insight into the impact that the digital
workplace is having on employee and business efficiency. This
service is crucial for many businesses grappling with a drastic
change from the traditional five-day office week. Not only does our
technology allow customers to be more focussed in terms of
targeting capital expenditure and reducing operational costs to
maximise efficiency and productivity, our product also facilitates
a greater level of employee engagement, playing a part in ensuring
that separation and physical distance between employees does not
lead to a fractured working environment. By coupling business
impact insights with highly actionable technology data, we can
support our customers in creating a sustainable future of work in
their business.
Strategy
Having previously completed our pivot to our new
Analytics-as-a-Service offering, we are now ready to scaleup our
business by focussing on direct engagement with our prospective and
existing customers to ensure we are delivering the best value to
customers that we can with our technology.
We continue to develop our direct sales capability, with our new
Chief Revenue Officer, Roy Jugessur in place to strengthen our
sales function, and with further product enhancements;
-- Greater automation of our reporting to reduce the resource
required to deliver to individual customers each time, this will
enable us to scale effectively and quickly as the pipeline
closes.
-- Scalability of our service clouds so that we can
cost-effectively handle the demands of the world's largest
enterprises as we enter an aggressive growth phase.
Product development
Chief Product Officer Scarlet Jeffers has been leading the
development of our new DWMS offering and is responsible for driving
into our work a deep understanding of the needs of our customers
and the wider market into our work. In developing the new portal,
Scarlet and her team have been engaging directly with our
prospective and existing customers to understand more clearly their
wants and needs. We are:
-- Soft-launching an engaging, intuitive customer portal to show
the business value of our insights with greater impact. This will
allow us to optimise margins and also pave the way for building
resonance in the market as we become recognisable in our niche
-- Increasing the capability of our measurement software to
capture non-invasive diagnostics about home worker internet setups
and provide the level of granularity that large enterprise
organisations need in order to make hybrid working truly
sustainable
-- Using a refreshed Human Experience Score to give a more
intuitive understanding in the market and to be reflective of the
experience of home workers by accounting for variability in the
digital workplace
-- Putting heavy focus on doing more with our data, finding ways
to provide deeper insights and working to understand how we can
interface with other sources of information for our customers in
the future
Sales & Marketing
In the period, Actual Experience took several positive steps to
improve its sales function, with further investment in the direct
sales team. Our direct sales team has focussed on increasing the
level of direct customer engagement, which promises to assist in
converting pipeline prospects into paying customers.
We have focussed our marketing activity on various means of
testing and evaluation of messaging and positioning to people
leaders (CHROs) and finance leaders (CFOs). This has included
participation in conferences, round tables, podcast style
interviews, blogs and other forums, particularly in the HR space,
that has helped to improve the positioning and value of our
product.
Outlook
Actual Experience is now well prepared to scaleup its
operations. Market conditions remain encouraging for our business,
as our technology offering directly supports the needs of many
large blue-chip companies that are increasingly looking to embrace
new hybrid ways of working. It is becoming ever clearer that 'new
ways of working' are here to stay and are no longer directly a
temporary response to the impact of Covid-19.
With the newly refined portal and increased customer engagement,
the Company is now at a stage where further development of the
product is not the key priority. Instead, we are transitioning to a
scaleup business by focussing on our direct sales and marketing
functions to ensure we maximise the breadth and depth of businesses
that can feed into our active pipeline of prospects.
The increasing length of procurement processes at large, global
blue-chip companies has proven a challenge. However, the Board
expects that the second half of 2022 will see increased momentum as
the benefits of our improved product offering and sales functions
lead to new 'wins'.
FINANCIAL REVIEW
Consolidated Income Statement
Total revenue for the six months to 31 March 2022 was
GBP824,706, a decrease on the prior year of 7.3% (H1 FY21:
GBP889,467). This decrease reflects the previously announced
cancellation of a longstanding contract that relied on our legacy
product offering, partly offset by new DWMS revenues. The Company
maintained its focus on developing a direct sales capability during
the period, while continuing to work with its partners on indirect
sales opportunities. Revenues from Channel Partners in the period
account for 96.4% of sales (H1 FY21: 97.9%).
A gross profit of GBP354,386 was achieved in the period,
compared to the gross profit of GBP446,902 in the corresponding
period in 2021. The gross margin for the six months was 43.0%,
representing a decrease from the prior period (H1 FY20: 50.2%).
This decrease in gross margin reflects the impact of fixed costs on
a lower revenue period and investment made in cloud infrastructure
to support new DWMS revenue opportunities.
Administrative costs amounted to GBP3,194,804, compared to
GBP2,632,341 in the six months to 31 March 2021. This increase
primarily arose from the investment in sales and marketing
activities in the period
The functional cost breakdown is as follows:
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2022 2021 2021
GBP GBP GBP
---------------------------- ----------- ----------- --------------
Sales and marketing 971,671 564,187 1,548,040
Research and development 1,000,714 1,018,316 2,131,682
Impairment to previously
capitalised spend - - 820,110
Operational support 580,263 489,335 1,008,287
Finance and administration 634,331 535,780 1,209,945
Foreign exchange losses 7,825 24,723 3,850
---------------------------- ----------- ----------- --------------
Total 3,194,804 2,632,341 6,721,914
---------------------------- ----------- ----------- --------------
It is anticipated that administrative costs will be lower in the
in the second half of the year, due primarily to a combination of
lower employee headcount and reduced marketing expenditure and will
continue to be kept under review.
As disclosed in the notes to the Company's 2021 Financial
Statements, and in accordance with the requirements of IAS 38,
qualifying development expenditure is capitalised and amortised
over the estimated useful life of the developed assets. Total
expenditure on research and development in the six months to 31
March 2022, prior to IAS 38 adjustments, was GBP976,956 (H1 FY21:
GBP861,558).
The Group recorded an operating loss in the period of
GBP2,840,418 (H1 FY21: loss of GBP2,185,439) and a loss per share
of 4.97p (H1 FY21: loss per share of 4.29p). A summary of the
Group's results is set out below
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2022 2021 2021
GBP GBP GBP
-------------------------- ------------ ------------ --------------
Revenue 824,706 889,467 1,741,207
-------------------------- ------------ ------------ --------------
Gross profit 354,386 446,902 833,209
-------------------------- ------------ ------------ --------------
Operating loss (2,840,418) (2,185,439) (5,888,705)
Loss for the period/year (2,849,540) (2,150,074) (5,847,195)
-------------------------- ------------ ------------ --------------
Balance sheet
The Group has a debt free balance sheet. Cash and cash
equivalents decreased during the period, from GBP8,216,198 at 30
September 2021 to GBP5,373,451 at 31 March 2022, in line with
expectations. This decrease arose from operating losses in the
period.
Free cash flow for the period was GBP(2,796,982) (H1 FY21:
GBP(2,056,338)). This increase reflects the higher operating loss;
as noted above, this primarily arose from an increase in Sales and
Marketing expenses. Free cash flow is defined as net cash flows
used in operating activities, plus development of intangible
assets, plus purchase of property, plant and equipment.
Trade and other receivables of GBP393,161 at 31 March 2022 (31
March 2021: GBP986,669) comprise trade debtors of GBP30,451,
prepayments of GBP235,910 and other debtors of GBP126,800.
Cash flow statement
The movement in cash and cash equivalents during the period
was:
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2022 2021 2021
GBP GBP GBP
-------------------------------------- ------------ ------------ -------------
Net cash used in operating
activities (2,375,900) (1,661,947) (3,145,093)
Net cash used in investing
activities (418,108) (394,088) (713,511)
Net cash generated from/(used
in) financing activities (50,007) 9,372,616 9,324,707
Effect of exchange rate fluctuations 1,268 (6,077) (4,179)
Movement during the period/year (2,842,747) 7,310,504 5,461,924
-------------------------------------- ------------ ------------ -------------
Going concern
As described in Note 2, Basis of Preparation, the amounts and
timing of future revenues remain uncertain. If the Group is unable
to secure an appropriate combination of new revenue contracts, cost
reductions, and/or further funding, then it may not have sufficient
resources to meet its liquidity requirements for the foreseeable
future. Accordingly, material uncertainty exists which may cast
significant doubt about its ability to continue as a going
concern.
Actual Experience plc
Consolidated income statement and statement of comprehensive
income
For the six months ended 31 March 2022
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2022 2021 2021
GBP GBP GBP
-------------------------------------------- ------------ ------------ -------------
Revenue 824,706 889,467 1,741,207
Cost of sales (470,320) (442,565) (907,998)
-------------------------------------------- ------------ ------------ -------------
Gross profit 354,386 446,902 833,209
Administrative expenses (3,194,804) (2,632,341) (6,721,914)
Operating loss (2,840,418) (2,185,439) (5,888,705)
Finance income 2,974 303 2,734
Finance expense (12,096) (14,010) (27,285)
Finance expense - net (9,122) (13,707) (24,551)
Loss before tax (2,849,540) (2,199,146) (5,913,256)
Tax - 49,072 66,061
-------------------------------------------- ------------ ------------ -------------
Loss for the period/year (2,849,540) (2,150,074) (5,847,195)
-------------------------------------------- ------------ ------------ -------------
Other comprehensive income:
Items that are or may be reclassified
to profit or loss:
Foreign currency difference on translation
of overseas operations 5,521 (18,283) (19,314)
-------------------------------------------- ------------ ------------ -------------
Total comprehensive loss for the
period/year (2,844,019) (2,168,357) (5,866,509)
-------------------------------------------- ------------ ------------ -------------
Loss per ordinary share
Basic and diluted (4.97)p (4.29)p (10.84)p
Actual Experience plc
Consolidated statement of financial position
As at 31 March 2022
Unaudited Unaudited Audited
At 31 March At 31 March At 30 September
2022 2021 2021
GBP GBP GBP
------------------------------- ------------- ------------- ----------------
Non-current assets
Property, plant and equipment 47,634 29,423 48,879
Right-of-use assets 614,918 726,710 670,814
Intangible assets 873,441 1,816,023 897,199
------------------------------- ------------- ------------- ----------------
Total non-current assets 1,535,993 2,572,156 1,616,892
Current assets
Trade and other receivables 393,161 986,669 584,819
Income tax receivable 44,103 342,331 44,103
Cash and cash equivalents 5,373,451 10,064,778 8,216,198
------------------------------- ------------- ------------- ----------------
Total current assets 5,810,715 11,393,778 8,845,120
Total assets 7,346,708 13,965,934 10,462,012
------------------------------- ------------- ------------- ----------------
Non-current liabilities
Deferred tax (8,826) (4,770) (8,901)
Lease liabilities (545,691) (662,915) (604,894)
Total non-current liabilities (554,517) (667,685) (613,795)
Current liabilities
Trade and other payables (700,957) (705,518) (897,041)
Lease liabilities (117,224) (113,259) (115,246)
Total current liabilities (818,181) (818,777) (1,012,281)
------------------------------- ------------- ------------- ----------------
Total liabilities (1,372,698) (1,486,462) (1,626,076)
Net assets 5,974,010 12,479,472 8,835,936
------------------------------- ------------- ------------- ----------------
Equity
Share capital 114,681 114,388 114,538
Share premium 44,231,620 44,191,196 44,212,455
Accumulated losses (38,372,291) (31,826,112) (35,491,057)
------------------------------- ------------- ------------- ----------------
Total equity 5,974,010 12,479,472 8,835,936
------------------------------- ------------- ------------- ----------------
Actual Experience plc
Consolidated statement of changes in equity
For the six months ended 31 March 2022
Share Share Accumulated Total
capital premium losses equity
GBP GBP GBP GBP
-------------------------------- --------- ----------- -------------- --------------
Unaudited
As at 30 September 2020 95,284 34,768,349 (29,666,862) 5,196,771
Loss for the period - - (2,150,074) (2,150,074)
Other comprehensive income for
the period - - (18,283) (18,283)
-------------------------------- --------- ----------- -------------- --------------
Total comprehensive loss for
the period - - (2,168,357) (2,168,357)
Issue of shares 19,104 9,422,847 - 9,441,951
Share-based payment credit - - (9,107) (9,107)
-------------------------------- --------- ----------- -------------- --------------
As at 31 March 2021 114,388 44,191,196 (31,826,112) 12,479,472
-------------------------------- --------- ----------- -------------- --------------
Audited
As at 30 September 2020 95,284 34,768,349 (29,666,862) 5,196,771
Loss for the year - - (5,847,195) (5,847,195)
Other comprehensive income for
the year - - (19,314) (19,314)
-------------------------------- --------- ----------- -------------- --------------
Total comprehensive loss for
the year - - (5,866,509) (5,866,509)
Issue of shares 19,254 9,444,106 - 9,463,360
Share-based payment expense - - 42,314 42,314
-------------------------------- --------- ----------- -------------- --------------
At 30 September 2021 114,538 44,212,455 (35,491,057) 8,835,936
-------------------------------- --------- ----------- -------------- --------------
Unaudited
As at 1 October 2021 114,538 44,212,455 (35,491,057) 8,835,936
Loss for the period - - (2,849,540) (2,849,540)
Other comprehensive income for
the period - - 5,521 5,521
-------------------------------- --------- ----------- -------------- --------------
Total comprehensive loss for
the period - - (2,844,019) (2,844,019)
Issue of shares 143 19,165 - 19,308
Share-based payment credit - - (37,215) (37,215)
-------------------------------- --------- ----------- -------------- --------------
At 31 March 2022 114,681 44,231,620 (38,372,291) 5,974,010
-------------------------------- --------- ----------- -------------- --------------
Actual Experience plc
Consolidated statement of cash flows
for the six months ended 31 March 2022
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2022 2021 2021
GBP GBP GBP
--------------------------------------------- ------------ ------------ -------------
Cash flows from operating activities
Loss before tax (2,849,540) (2,199,146) (5,913,256)
Adjustment for non-cash items:
Depreciation of property, plant and
equipment 14,193 32,519 48,413
Depreciation of right-of-use assets 55,896 55,896 111,792
Amortisation of intangible assets 431,911 548,202 933,780
Impairment of intangible assets - - 820,110
Loss/(profit) on disposal of property,
plant and equipment 17 - (359)
Non-cash employee benefit expense -
Share-based payments (37,215) 9,107 42,314
Finance income - net 9,122 13,707 24,551
Operating cash outflow before changes
in working capital (2,375,616) (1,539,715) (3,932,655)
Movement in trade and other receivables 198,996 (311,968) 94,827
Movement in trade and other payables (199,205) 189,754 373,405
--------------------------------------------- ------------ ------------ -------------
Cash outflow from operations (2,375,825) (1,661,929) (3,464,423)
Income tax received (75) (18) 319,330
Net cash flows used in operating activities (2,375,900) (1,661,947) (3,145,093)
Cash flow from investing activities
Development of intangible assets (408,153) (391,444) (678,308)
Purchase of property, plant and equipment (12,929) (2,947) (38,300)
Proceeds from sale of property, plant
and equipment - - 363
Finance income 2,974 303 2,734
Net cash outflow from investing activities (418,108) (394,088) (713,511)
Cash flow from financing activities
Proceeds from issue of share capital,
net of costs 19,308 9,441,951 9,463,360
Principal element of lease payments (69,315) (69,315) (138,630)
Inflow/outflow to Employee Benefit Trust - (20) (23)
--------------------------------------------- ------------ ------------ -------------
Net cash (outflow)/inflow from financing
activities (50,007) 9,372,616 9,324,707
(Decrease)/increase in cash and cash
equivalents (2,844,015) 7,316,581 5,466,103
Effect of exchange rate fluctuations
on cash held 1,268 (6,077) (4,179)
--------------------------------------------- ------------ ------------ -------------
Cash and cash equivalents at start of
year / period 8,216,198 2,754,274 2,754,274
--------------------------------------------- ------------ ------------ -------------
Cash and cash equivalents at end of
year / period 5,373,451 10,064,778 8,216,198
--------------------------------------------- ------------ ------------ -------------
Notes to the consolidated interim report
For the six months ended 31 March 2022
1 General information
Actual Experience plc (the "Company") is a public limited
company domiciled in the UK and incorporated in England and Wales
(registered number 06838738) and its registered office is Quay
House, The Ambury, Bath, BA1 1UA.
The principal activity of Actual Experience plc ("the Company")
and its subsidiary company Actual Experience Inc (together "Actual
Experience" or "the Group") is the provision of digital experience
quality analytics services and associated consultancy services.
The interim condensed consolidated financial information
approved for issue on 23 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.
'On 31 December 2020, IFRS as adopted by the European Union at
that date was brought into UK law and became UK-adopted
International Accounting Standards, with future changes being
subject to endorsement by the UK Endorsement Board. Actual
Experience transitioned to UK-adopted International Accounting
Standards in its consolidated financial statements on 1 October
2021. This change constitutes a change in accounting framework.
However, there is no impact on recognition, measurement or
disclosure in the period reported as a result of the change in
framework. This interim condensed consolidated financial
information for the six months ended 31 March 2022 has been
prepared in accordance with the UK-adopted International Accounting
Standards.
The interim financial information does not include all of the
notes of the type normally included in an annual financial report.
Accordingly, this report is to be read in conjunction with the
annual report for the year ended 30 September 2021, which has been
prepared in accordance with "International Accounting Standards in
conformity with the requirements of the Companies Act 2006", and
any public announcements made by Actual Experience during the
interim reporting period. The accounting policies adopted are
consistent with those of the previous financial year and
corresponding interim reporting period.
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 US
subsidiary, Actual Experience Inc. Comparative figures in the
Interim Report for the year ending 30 September 2021 have been
taken from the Group's audited financial statements. Those accounts
have been reported on by the Company's auditors and delivered to
the Registrar of Companies. The report of the auditors was (i)
unqualified, although included an emphasis of matter in respect of
material uncertainty around going concern and (ii) did not contain
a statement under section 498(2) or (3) of the Companies Act
2006.
Going concern
As in previous years, the Group and Company have continued to
utilise their cash resources to fund losses while the sales
pipeline is being further developed. The cash balance as at 31
March 2022 was GBP5.4m, which will provide the Group and Company
with sufficient resources to meet their liquidity requirements at
least until 30 September 2023, based on the Group's latest budgeted
sales and cost projections. The Directors have also prepared a
severe, but plausible downside scenario, based on significantly
more pessimistic sales forecasts, with corresponding reductions in
controllable costs. In this scenario also, the Group and Company
will continue to meet their liquidity requirements over the
period.
The amounts and timing of future revenues in the Group's budgets
remain uncertain. The Group is experiencing an encouraging level of
interest in its services and it is in active discussions with its
Channel Partners and several large potential end-customers. The
discussions are well progressed and are expected to result in
additional revenue for the Group. However, at present a substantial
proportion of the forecast revenue remains uncommitted and if the
Group and Company are unable to secure an appropriate combination
of new revenue contracts, cost reductions, and/or further funding,
then the Group and Company may not have sufficient resources to
meet their liquidity requirements over the foreseeable future.
Accordingly, a material uncertainty exists which may cast
significant doubt about the Group's and the Company's ability to
continue as going concerns. Nevertheless, after making appropriate
enquiries and considering the assumptions and uncertainties
described above, the Directors have a reasonable expectation that
the Group and Company will have adequate resources to continue
operating at least until 30 September 2023. Therefore, the
Directors continue to adopt the going concern basis in preparing
the interim condensed consolidated financial information and does
not include any of the adjustments that would be required if the
Group or Company were unable to continue as going concerns.
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.
The information reported to the Chief Executive Officer, who is
considered to be the Chief Operating Decision Maker ("CODM"), for
the purposes of resource allocation and assessment of performance
is based wholly on the overall activities of the Group. Due to the
current size and activities of the Group there is a high degree of
centralisation of activities. The Directors therefore consider that
there is one operating, and hence one reportable, segment for the
purposes of presenting information under IFRS 8; that of "Digital
experience quality analytics services and associated consultancy
services". There are no differences between the segment results and
the condensed statement of comprehensive income. The assets and
liabilities information presented to the CODM is consistent with
the Statement of Financial Position. All of the Group's assets and
operations are located in the UK and the USA.
4 Tax
Tax on loss on ordinary activities
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2022 2021 2021
Current tax:
UK Corporation tax on losses
of the period/year - (46,781) (63,705)
Overseas taxes 75 18 (4,178)
Deferred tax:
Origination and reversal of
timing differences (75) (2,309) 1,822
Total tax credit - (49,072) (66,061)
------------------------------ ----------- ----------- -------------
5 Loss 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 GBP2,849,540 (six months to 31 March 2021:
GBP2,150,074, year ended 30 September 2021: GBP5,847,195) and a
weighted average number of ordinary shares in issue of 57,294,806
(six months to 31 March 2021: 50,058,854, year ended 30 September
2021: 53,911,253), 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
Issued ordinary shares at start
of period/year 57,269,321 47,642,124 47,642,124
Effect of shares issued 25,485 2,416,730 6,269,129
Weighted average number of shares
at end of period/year 57,294,806 50,058,854 53,911,253
----------------------------------- ----------- ----------- -------------
Due to the losses incurred there is no dilutive effect from the
issue of share options.
6 Related party transactions
There were no transactions entered into with related parties
during the period. No amounts were outstanding to or from the
related parties at 31 March 2022.
During each financial period, the Company entered into numerous
transactions with its subsidiary company, which net off on
consolidation; these have not been shown above.
7. Availability of Interim Report
Electronic copies of this Interim Report will be available on
the Company's website at www.actual-experience.com.
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 Company 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.
The Directors of Actual Experience plc and their functions are
listed below.
Further information for Shareholders
Company number: 06838738
Registered office: Quay House
The Ambury
Bath
BA1 1UA
Directors: Kirsten English (Non-Executive Chair)
Dave Page (Chief Executive Officer)
Steve Bennetts (Chief Financial Officer)
Stephen Davidson (Non-Executive Director)
Sir Bryan Carsberg (Non-Executive Director)
Company Secretary: Steve Bennetts
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END
IR BKNBQABKDQPB
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May 24, 2022 02:00 ET (06:00 GMT)
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