ChallengerX Plc Management accounts for the quarters ended 30 June 2023 and 31 March 2023

 
TIDMCXS 
 
28 July 2023 
 
ChallengerX plc 
 ("ChallengerX", "CX" or the "Company") 
 
Management accounts for the quarters ended 30 June 2023 and 31 March 2023 
 
ChallengerX  (AQUIS: CXS), the trading company with principal activity of 
employing both traditional and non-traditional marketing strategies to rapidly 
"professionalise" amateur and semi-professional sports clubs around the world 
 announces its unaudited management accounts reports for the quarters ended 30 
June 2023 and 31 March 2023. 
 
This announcement contains inside information for the purposes of the UK Market 
Abuse Regulation and the Directors of the Company are responsible for the 
release of this announcement. 
 
For further information, please contact: 
 
Enquiries: 
 
ChallengerX plc 
 
John May, Chairman                          [e-mail] 
Stuart Adam, CFO                          [e-mail] 
First Sentinel Corporate                             [phone] 
 
AQSE Corporate Adviser 
 
Brian Stockbridge / Gabrielle Cordeiro 
 
Directors Statement 
 
Introduction 
 
ChallengerX plc (the "Company" or "ChallengerX") is an investment company quoted 
on the Aquis Stock Exchange ("AQSE") Growth Market. The Company was incorporated 
on 7 June 2021 and its shares were admitted to trading on 23 December 2021. 
 
Activities during the periods 
 
The company continued to advance its development of a platform for the promotion 
and marketing of sports clubs in both a traditional and non-traditional way. In 
particular the company worked hard on adding to its offerings for the upcoming 
soccer seasons starting in the Autumn. 
 
In February 2023 the Company announced it had raised a total of GBP 250,000 
(gross) from Aalto Capital AB, through the issue of 55,555,556 new ordinary 
shares pursuant to a subscription letter. The payment relating to the fundraise 
hasn't yet been fully received by the Company. The outstanding amount at 30 June 
2023 of £168,000 is included in "Trade and other receivables" on the Statement 
of Financial Position. As at the date of this report, the Company has still only 
received £82,000. The Company is in ongoing conversations with the investor to 
receive the remaining balance. The Managing Director of Aalto unfortunately died 
before this transaction could be completed which has delayed conversations. 
 
The Directors confirm that this current shortfall in the fundraise does not 
impact the working capital position of the Company. 
 
The Company had announced that it had granted Aalto Capital AB a total of 
55,555,556 warrants to subscribe for new ordinary shares of GBP 0.001 each 
(`Warrants'). The Warrants to be exercisable at 0.45 pence per ordinary share, 
and for a period of 5 years from the date of issue. Due to the non-completion of 
the subscription amount in a timely way these warrants may be withdrawn to the 
company's Treasury. 
 
Outlook 
 
The development of the marketing platform as mentioned above will require more 
expenditure.  Additional funds will be sought for this. Meanwhile the company 
continues to supplement its income by applying itself to other project 
opportunities and will continue to review its business plan and strategy by 
looking at transactions in complimentary sectors that could lead even to a 
reverse transaction whilst keeping its establishment overheads as lean as 
possible. 
 
John May 
 
Chairman 
 
Unaudited Statement of Comprehensive Income 
 
for the quarters ended 30 June 2023 and 31 March 2023 
 
                                                 30 June2023  31 March2023 
                                                    £'000        £'000 
Revenue                                                                  - 
Administrative expenses                                 (61)          (46) 
Operating loss                                          (61)          (46) 
Loss before tax                                         (61)          (46) 
Taxation                                                   -             - 
Loss for the period                                     (61)          (46) 
Total comprehensive loss                                (61)          (46) 
(Loss) per share (pence) from continuing             (0.018)       (0.013) 
operations attributable toowners of the Company 
- Basic 
 
Statement of Financial Position 
 
As at quarters ended 30 June 2023 and 31 March 2023 
 
                             30 June 2023£'000  31 March 2023£'000 
Current assets 
Trade and other receivables                177                 256 
Cash and cash equivalents                   48                  31 
Total current assets                       225                 287 
Total assets                               225                 287 
Current liabilities 
Trade and other payables                    55                  56 
Total current liabilities                   55                  56 
Net assets                                 170                 231 
Capital and reserves 
Share capital                              343                 343 
Share premium                            1,410               1,410 
Retained earnings                      (1,583)             (1,522) 
Total equity                               170                 231 
 
Statement of Changes in Equity 
 
For the quarters ended 30 June 2023 and 31 March 2023 
 
                      Share capital  Share premium  Retained earnings  Total 
                              £'000          £'000              £'000  £'000 
As at 31 December               288          1,230            (1,476)     42 
2022 
Allotment of                     55            180                  -    235 
ordinary shares 
Loss for quarter                  -              -               (46)   (46) 
ended 31 March 2023 
Total Comprehensive               -              -               (46)   (46) 
Income 
As at 31 March 2023             343          1,410            (1,522)    231 
 
Allotment of                      -              -                  -      - 
ordinary shares 
Loss for the quarter              -              -               (61)   (61) 
ended 30 June  2023 
Total Comprehensive               -              -               (61)   (61) 
Income 
As at 30 June 2023              343          1,410            (1,583)    170 
 
Statement of Cash Flows 
 
For the quarter ended 30 June 2023 and 31 March 2023 
 
                                                     30 June 2023  31 March 2023 
                                                            £'000          £'000 
Cash from operating activities 
Loss before tax                                              (61)           (46) 
Adjustments for: 
Decrease /(Increase) in trade and other receivables            79          (248) 
(Decrease) in trade and other payables                        (1)            (2) 
Net cash generated /(used) in operating activities             17          (296) 
Cash flows from financing activities 
Proceeds from issue of shares (net of issue costs)              -            235 
Net cash from financing activities                              -            235 
Net cash flow for the period                                   17           (61) 
Cash and cash equivalents at beginning of period               31             92 
Cash and cash equivalents at end of period                     48             31 
Net change in cash and cash equivalents                        17           (61) 
Cash and cash equivalents comprise: 
Cash at bank and in hand                                       48             31 
                                                               48             31 
 
Notes to the financial statements 
 
 1. General information 
 
ChallengerX plc is a public limited company limited by shares and was 
incorporated in England on 7 June 2021 with company number 13440398. Its 
registered office is 16 Great Queen Street, London, WC2B 5DG. 
 
The Company's shares are traded on the Aquis Stock Exchange Growth Market under 
symbol CXS and ISIN number 
 
GB00BMD0WG01. 
 
The Company was first incorporated on 7 June 2021. 
 
The information for periods ended 30 June 2023 and 31 March 2023 are unaudited. 
 
 2. Basis of Preparation 
 
The quarterly management accounts of ChallengerX plc have been prepared in 
compliance with United Kingdom Accounting Standards, including Financial 
Reporting Standard 102, "The Financial Reporting Standard applicable in the 
United Kingdom and the Republic of Ireland" ("FRS 102") and the Companies Act 
2006. 
 
These management accounts are prepared on a going concern basis, under the 
historical cost convention, as modified by the recognition of listed investments 
at fair value. 
 
The financial statements are presented in Pounds Sterling, which is the 
Company's presentation and functional currency. 
 
The preparation of the financial statements requires the use of certain critical 
accounting estimates. It also requires management to exercise its judgment in 
the process of applying the Company's accounting policies. The areas involving a 
higher degree of judgment and complexity, or areas where assumptions and 
estimates are significant to the financial statements are disclosed in Note 3 to 
the financial statements. 
 
The financial statements have been prepared on the historical cost basis and are 
presented in £'000 unless otherwise stated. 
 
 3. Going Concern 
 
As at 30 June 2023, the Company had cash of £48,000. As a newly established 
trading business, the Company has limited operating cash flow and is dependent 
on the performance of its trading and its cash balances for its working capital 
requirements. As at the date of this report, the Company had approximately 
£26,500 cash at bank. 
 
The Directors continue to seek recovery of the sequestered funds held by the 
Administrator of it's subsidiary, SportsX, which are believed to amount to 
approximately £0.6m. 
 
For this reason, it continues to adopt the going concern basis in preparing the 
financial statements. 
 

 4. Earnings per share 
 
                                      30 June 2023  31 March 2023 
Earnings                                     £'000          £'000 
Loss for the quarters ended                   (61)           (46) 
Number of shares 
Number of shares for the purposes of   343,140,556    343,140,556 
basic and diluted earnings per share 
Earnings per share (pence)                 (0.018)        (0.013) 
 
 
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END 
 
 

(END) Dow Jones Newswires

July 28, 2023 11:15 ET (15:15 GMT)