ADVFN Logo ADVFN

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for alerts Register for real-time alerts, custom portfolio, and market movers

IGP Intercede Group Plc

105.50
0.00 (0.00%)
Last Updated: 08:00:00
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Intercede Group Plc LSE:IGP London Ordinary Share GB0003287249 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 105.50 103.00 108.00 105.50 105.50 105.50 7,048 08:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Security Systems Service 12.11M 1.31M 0.0225 46.89 61.43M

Intercede Group PLC Half-year Report (2493G)

24/11/2020 7:00am

UK Regulatory


Intercede (LSE:IGP)
Historical Stock Chart


From Apr 2019 to Apr 2024

Click Here for more Intercede Charts.

TIDMIGP

RNS Number : 2493G

Intercede Group PLC

24 November 2020

24 November 2020

INTERCEDE GROUP plc

('Intercede', the 'Company' or the 'Group')

Interim Results for the Six Months Ended 30 September 2020

Intercede, the leading specialist in digital identity, credential management and secure mobility, today announces its interim results for the six months ended 30 September 2020.

Financial Highlights

-- Revenues increased by 9% to GBP4.8m (2019: GBP4.4m) reflecting orders received from both new and existing customers with growth across all areas of revenue: software licenses, professional services and support & maintenance.

-- Operating expenses increased by 3% to GBP4.4m (2019: GBP4.3m). When one-offs are excluded, underlying operating costs are consistent and reflect ongoing tight control of overheads with investment in the product roadmap continuing as planned.

-- Increasing revenues and tightly controlled overheads have resulted in a substantial increase in operating profit to GBP295,000 (2019: GBP25,000).

-- A profit for the period of GBP0.4m (2019: GBP0.2m) resulted in a basic profit per share of 0.9p and a fully diluted profit per share of 0.8p (2019: basic profit per share of 0.4p and a fully diluted profit per share of 0.3p).

-- Cash balances of GBP8.1m at 30 September 2020 compared to GBP4.8m held at 31 March 2020; the increase is primarily driven by GBP3.3m of cash generated from operations (2019: GBP1.8m).

Operating Highlights

-- Sales pipeline remains strong and ahead of prior year, notwithstanding the impact of COVID-19. Proactive sales effort to maintain contact with Partners and Customers including virtual Customer Advisory Board (CAB) events during October and November for Customers in the RoW and US respectively.

-- New multi-million dollar contract win announced on 30 July 2020 with the US Department of State via a new partner, Guidehouse.

-- Seamless switch to remote working following the introduction of COVID-19 restrictions with highest eNPS (employee Net Promoter Score) to date recorded in the annual employee engagement survey. Maintained business as usual without anyone being furloughed or made redundant and without reductions in working hours or pay cuts.

-- MyID v11.6 released to plan, introducing a new operator client (using REST APIs for improved user experience and enhanced performance) and additional functionality including Windows Hello for Business integration.

-- Release of the new MyID authentication service, bringing strong mobile authentication to the MyID platform and increasing the value the product brings to customers.

Chuck Pol, Chairman, said:

"I have been hugely impressed by the resilience of the Group, its customers and partners in the face of significant macroeconomic uncertainty following the COVID-19 pandemic. Intercede has delivered continued growth during a period of worldwide social and economic turbulence; revenues are 9% higher and operating profits and cashflows have substantially increased to deliver significantly higher gross cash balances thereby demonstrating the relevance and resilience of Intercede and its MyID Platform.

I would like to take this opportunity to thank our colleagues for their hard work during what has undoubtedly been a challenging six months. I continue to be impressed by how our teams have adapted to remote working and am sure that our customers and partners appreciate Intercede's continued high levels of service and commitment to writing the best code in the markets we serve."

ENQUIRIES

Intercede Group plc Tel. +44 (0)1455 558 111

Klaas van der Leest, Chief Executive

Andrew Walker, Finance Director

finnCap Tel. +44 (0)20 7220 0500

Stuart Andrews, Corporate Finance

Simon Hicks, Corporate Finance

About Intercede

Intercede is a cybersecurity company specialising in digital identity, credential management and secure mobility.

Headquartered in the UK, with offices in the US, we believe in a connected world in which people and technology are free to exchange information securely, and complex insecure passwords become a thing of the past.

Our vision is to make the highest levels of cybersecurity available to all organisations, solving complex issues by simplifying the management of digital credentials, securely and at scale.

We have been delivering trusted solutions to high profile customers for over 20 years. Our team of experts has deployed millions of identities to governments, most of the largest aerospace and defence corporations, and major financial services and healthcare organisations, as well as leading telecommunications, cloud services and information technology firms, providing industry-leading employee and customer credential management systems.

For more information visit: www.intercede.com

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

INTERCEDE GROUP plc

('Intercede', 'the Company' or 'the Group')

Interim Results for the Six Months Ended 30 September 2020

Interim Management Review

Introduction

Despite the challenges caused by COVID-19 in the six months ending 30 September 2020 (H1), Intercede is trending towards consistent growth and is on a sound financial footing with a strong cash position and an exciting product roadmap. The Group's refocus towards to sustainable revenue growth and profitability is well under way as evidenced by this fifth successive half of significant progress across the business.

At the time of writing the Annual Report for the year ended 31 March 2020 (FY20), COVID-19 had already spread rapidly across the world and there was concern that reduced physical customer interaction and country lockdowns could have a negative impact on the Group's FY21 performance. While this has been the case for business in Europe and the wider RoW region, there has been significant growth in the US where Intercede's MyID platform is seen as a market leader amongst US Federal government departments. Intercede is proud that the MyID platform is extremely relevant in the current climate as its derived credential and mobile technology help our customers to work remotely in a secure fashion.

Strategy

Notwithstanding the challenges posed by the COVID-19 pandemic, material progress has been achieved on all elements that form part of Intercede's 5C strategy, centred around Colleagues, Customers, Channels, Code and Cash.

   1.   Colleagues 

The Intercede culture remains as strong as ever. Following the introduction of COVID-19 restrictions, the team moved seamlessly to a remote working model and, as these results demonstrate, delivered solid growth across the business despite the challenges of lockdown to businesses everywhere. Over the period staff numbers are unchanged; business as usual has been maintained without anyone being furloughed or made redundant and without any reductions in working hours or pay cuts. Intercede continues to recognise the achievements of its staff with pay rises and performance-related rewards.

During the period, Intercede conducted the annual employee engagement survey and this year saw the highest ever positive eNPS score (employee Net Promoter Score), demonstrating the commitment and strength of employee engagement. Strong progress was reported on all elements of the survey which is a great testament to the success of the Employee Working Group.

   2.   Customers 

As outlined below in the Financial Results section, a number of follow on orders have been received from existing customers and Intercede was excited to announce a significant new sale to the US Department of State (DoS). The ten-year, multi-million dollar contract will see Intercede's MyID software issuing and managing the lifecycle of hundreds of thousands of DoS employee digital identities. This forms part of the agency's next-generation Identity Management System (IDMS) solution compliant with Homeland Security Presidential Directive 12 (HSPD-12)/US Federal Government Standard FIPS 201.

To combat decreasing physical customer interaction during the pandemic, Intercede has continued to push ahead with three important customer focused initiatives: Customer Advisory Board (CAB), Customer Satisfaction Survey and the Customer Portal. Virtual CABs were held during October and November for Customers in the RoW and US respectively, who took the opportunity to get a view of upcoming updates to the MyID software platform but more importantly contribute to workshops on future MyID roadmap developments and innovations. Meanwhile the annual Customer Satisfaction Survey is currently underway and the Customer Portal is live and gathering feedback.

   3.   Channels 

Our partner network has continued to expand with new agreements established with partners covering the UK, North America, Africa, Middle East and Europe.

We currently have MyID deployments active on four Continents and each of them has inevitably been impacted by the pandemic. Europe and the Middle East has been particularly hard hit simply by the severity of individual country lockdowns. It has been very difficult for our partners to progress demonstrations and close out sales leads. Opportunities with Government departments and public utilities have been particularly affected as their priorities have been very much focused on public health challenges rather than the commissioning and deployment of new digital ID solutions.

The establishment and further development of partner relationships is critical for the Group's future growth prospects. MyID is a Credential Management System (CMS) that forms part of a wider identity ecosystem and Intercede utilises its global network of reseller and technology partners to provide the global footprint to locally deliver the cyber security solutions our customers need. A number of new wins in the period highlight the strength of Intercede's offering when working proactively with partners, following on from the recent launch of our Connect Partner Programme.

   4.   Code 

The challenge for Intercede continues to be scalability, which is being tackled on a number of fronts primarily by looking at new market segments, such as FIDO (Faster IDentity Online), and by reducing the cost and complexity of PKI (Public Key Infrastructure) with new products such as MyID Professional. There is clearly interest in the market for low cost PKI with out-of-the-box integration and it is pleasing to note the first sale of MyID Professional, a subscription based offering, during the period. The introduction of MyID Professional opens up engagement with potential business leads previously not addressed and who may, on further investigation, find their needs are better met with MyID Enterprise thereby creating nett new sales entries.

Innovation is in Intercede's DNA and MyID v11 continues to evolve under the guiding principles of a) modernising the platform; b) introducing functionality to expand the addressable market; and c) continuing to be a customer-driven product. During the period MyID v11.6 was released to plan and has been well received by customers thanks to the introduction of a new operator client (using REST APIs for improved user experience and enhanced performance) and additional functionality including Windows Hello for Business integration (WHFB) as well as the new MyID authentication service. Intercede is working closely with Microsoft to develop an even tighter integration with WHFB as demanded by the most security conscious clients and prospects.

The new MyID authentication service enables organisations to quickly step up to the highest levels of security without having to invest in smart cards or tokens. When combined with the new MyID Authenticator mobile app, employees can easily authenticate to applications and cloud resources using a mobile device in place of a smart card or token. This provides a simple experience for the end user; supporting PIN, fingerprint and facial recognition while providing the organisation with a high security PKI-based authentication.

   5.   Cash 

The Group remains in a healthy financial position, with gross cash balances of GBP8.1m as at 30 September 2020 compared to GBP4.8m held at 31 March 2020 This increase is primarily driven by GBP3.3m of cash generated from operations (2019: GBP1.8m) which reflects strong cash management during a period when the Group has continued to proactively control its operating cost base while maintaining investment in the product roadmap.

Financial Results

Revenue in the period totalled GBP4,762,000, a 9% increase compared to the corresponding period last year with growth across all areas of revenue ie software licenses, professional services and support & maintenance. At the geographical level this growth is predominantly in the US market which possibly reflects different public health approaches to the pandemic but also demonstrates the resilience of Intercede's MyID brand in its core US Federal market. The US Government has a higher degree of regulation with respect to securing digital identities and Intercede prides itself on being first to produce accredited software, as it was when FIPS 201 was originally introduced.

It is also pleasing to note the longer-term trend of Intercede's revenue. Revenue for the six months ended 30 September 2016 was GBP2,828,000 and the growth from this starting point represents compound average growth of 14% over the four corresponding periods to 30 September 2020 (2017: GBP3,651,000, 2018: GBP4,174,000, 2019: GBP4,364,000, 2020: GBP4,762,000).

Revenue highlights for the period include:

- A new MyID PIV deployment sale to provide an innovative Identity Management System (IDMS) solution compliant with US Federal Government Standard FIPS 201 for the US Department of State (DoS) and its customers. An initial progress order in excess of $1m was received in August and a follow-on order totalling $2.8m was announced on 17 November 2020.

- A follow-on MyID Enterprise license order from one of the largest US wireless network operators.

   -     A new MyID Enterprise license sale to a geology research institution based in Germany. 

- The first sale of MyID Professional to a branch of the US State Government to provide a pilot solution.

- A new MyID Enterprise deployment sale to an existing US Airforce base customer. There is potential to package and market a MyID solution to other similar sized US Air Force base customers.

All of these wins are expected to generate incremental revenue over the next 12 months from a combination of support & maintenance plus professional services, development and/or follow-on license sales.

Compared to the corresponding period last year, operating expenses have increased by 3% to GBP4,446,000 (2019: GBP4,329,000). When one-offs are excluded, underlying costs are very consistent and reflect continued tight control over all areas of expenditure. Staff costs continue to represent the main area of expense representing 87% of total operating costs (2019: 87%). Intercede had 83 employees and contractors as at 30 September 2020 (30 September 2019: 82). The average number of employees and contractors during the period was 83 (2019: 82).

A GBP438,000 taxation credit for the period (2019: GBP447,000 taxation credit) primarily reflects the 2020 Research & Development ("R&D") claim which results from the Group's strategic investment activities. The Group is a beneficiary of the UK Government's efforts to encourage innovation by allowing 130% of qualifying R&D expenditure to be offset against taxable profits and 14.5% of the lower of R&D losses or taxable losses to be paid as tax credits.

The increase in revenue combined with a consistent level of operating expenses has resulted in an increase in operating profit to GBP295,000 (2019: GBP25,000). A profit for the period of GBP441,000 (2019: GBP184,000) resulted in a basic profit per share of 0.9p and a fully diluted profit per share of 0.8p (2019: basic profit per share of 0.4p and a fully diluted profit per share of 0.3p).

Cash balances as at 30 September 2020 totalled GBP8,067,000 which compares with GBP4,758,000 as at 31 March 2020 and GBP5,156,000 as at 30 September 2019. The increase in cash balances is primarily driven by GBP3,312,000 of cash generated from operations (2019: GBP1,841,000). It is worth noting that the 2020 R&D tax claim totalling GBP447,000 was received prior to the period end and forms part of the cash balances as at 30 September 2020 (2019: R&D claim totalling GBP460,000 was received shortly after the period end and does not form part of the cash balances as at 30 September 2019). Cash used in investing activities totalled GBP21,000 compared to GBP383,000 of cash generated in the prior period which included proceeds from the disposal of a UK office totalling GBP422,000. The much improved cash balances put the Group in a strong position to deal with convertible loan notes totalling GBP5,005,000 that are set to mature on 29 December 2021; whether the loan note holders elect to convert (at a conversion price of 68.8125 pence per ordinary share) or would prefer repayment of the outstanding balances.

Outlook

Whilst the broader impact of a second wave of COVID-19 on the remainder of the current financial year remains as yet uncertain, Intercede's fundamentals remain very much intact and year-on-year growth is still anticipated in FY21. As full or part-time remote working may increasingly become the norm, secure remote access to systems, applications and data will be essential and Intercede's derived credential and mobile technology is already well ahead of many others in the market. As in previous years, revenue is expected to be weighted towards the second half of the year.

Whilst the nature of Intercede's business and customer profile is such that the precise timing of orders is difficult to predict, the current sales pipeline and levels of bid activity continue to support management's revenue and profitability targets.

By order of the Board

Klaas van der Leest Andrew Walker

Chief Executive Officer Finance Director

24 November 2020 24 November 2020

 
 Consolidated Statement of Comprehensive 
  Income 
                                            6 months ended   6 months ended   Year ended 
                                              30 September     30 September     31 March 
                                                      2020             2019         2020 
 
                                                   GBP'000          GBP'000      GBP'000 
 Continuing operations 
 Revenue                                             4,762            4,364       10,355 
 Cost of sales                                        (21)             (10)         (12) 
                                                __________       __________   __________ 
 Gross profit                                        4,741            4,354       10,343 
 Operating expenses                                (4,446)          (4,329)      (9,191) 
                                                __________       __________   __________ 
 Operating profit                                      295               25        1,152 
 Finance income                                          3                9           19 
 Finance costs                                       (295)            (297)        (597) 
                                                __________       __________   __________ 
 Profit/(loss) before tax                                3            (263)          574 
 Taxation                                              438              447          432 
                                                __________       __________   __________ 
 Profit for the period                                 441              184        1,006 
                                                __________       __________   __________ 
 Total comprehensive income attributable 
  to owners of the parent company                      441              184        1,006 
                                                __________       __________   __________ 
 Profit per share (pence) 
 - basic                                              0.9p             0.4p         2.0p 
 - diluted                                            0.8p             0.3p         1.9p 
                                                __________       __________   __________ 
 
 
 
 Consolidated Balance Sheet 
                                          As at           As at        As at 
                                   30 September    30 September     31 March 
                                           2020            2019         2020 
 
                                        GBP'000         GBP'000      GBP'000 
 Non-current assets 
 Property, plant and equipment              109             151          119 
 Right of use assets                        851           1,021          980 
                                    ___________     ___________   __________ 
                                            960           1,172        1,099 
                                    ___________     ___________   __________ 
 
 Current assets 
 Trade and other receivables              1,315           3,188        5,100 
 Cash and cash equivalents                8,067           5,156        4,758 
                                    ___________     ___________   __________ 
                                          9,382           8,344        9,858 
                                    ___________     ___________   __________ 
 
 Total assets                            10,342           9,516       10,957 
                                    ___________     ___________   __________ 
 
 Equity 
 Share capital                              505             505          505 
 Share premium                              673             673          673 
 Equity reserve                              66              66           66 
 Merger reserve                           1,508           1,508        1,508 
 Accumulated deficit                    (3,597)         (5,076)      (4,133) 
                                    ___________     ___________   __________ 
 Total equity                             (845)         (2,324)      (1,381) 
                                    ___________     ___________   __________ 
 
 Non-current liabilities 
 Convertible loan notes                   4,879           4,790        4,832 
 Lease liabilities                        1,001           1,301        1,207 
 Deferred revenue                           370             311          195 
                                    ___________     ___________   __________ 
                                          6,250           6,402        6,234 
                                    ___________     ___________   __________ 
 
 Current liabilities 
 Lease liabilities                          328             284          316 
 Trade and other payables                 1,663           1,955        1,632 
 Deferred revenue                         2,946           3,199        4,156 
                                    ___________     ___________   __________ 
                                          4,937           5,438        6,104 
                                    ___________     ___________   __________ 
 
 Total liabilities                       11,187          11,840       12,338 
                                    ___________     ___________   __________ 
 
 Total equity and liabilities            10,342           9,516       10,957 
                                    ___________     ___________   __________ 
 
 
 Consolidated Statement of 
  Changes in Equity 
                                   Share      Share     Equity     Merger      Accumulated     Total 
                                 capital    premium    reserve    reserve          deficit    equity 
 
                                 GBP'000    GBP'000    GBP'000    GBP'000          GBP'000   GBP'000 
 
 At 1 April 2020                     505        673         66      1,508          (4,133)   (1,381) 
 
 Purchase of own shares                -          -          -          -             (14)      (14) 
 Proceeds from recycling 
  of own shares                        -          -          -          -               26        26 
 Employee share option plan 
  charge                               -          -          -          -               45        45 
 Employee share incentive 
  plan charge                          -          -          -          -               38        38 
 Profit for the period and 
  total comprehensive income           -          -          -          -              441       441 
                                           ________                         ______________   _______ 
                                ________              ________   ________       _______ 
 At 30 September 2020                505        673         66      1,508          (3,597)     (845) 
 
 
 At 1 April 2019                     505        673         66      1,508          (5,420)   (2,668) 
 
 Proceeds from recycling 
  of own shares                        -          -          -          -               17        17 
 Employee share option plan 
  charge                               -          -          -          -               54        54 
 Employee share incentive 
  plan charge                          -          -          -          -               89        89 
 Profit for the period and 
  total comprehensive income           -          -          -          -              184       184 
                                           ________                          ___________     _______ 
                                ________              ________   ________     __________ 
 At 30 September 2019                505        673         66      1,508          (5,076)   (2,324) 
 
 
 At 1 April 2019                     505        673         66      1,508          (5,420)   (2,668) 
 
 Proceeds from recycling 
  of own shares                        -          -          -          -               38        38 
 Employee share option plan 
  charge                               -          -          -          -               99        99 
 Employee share incentive 
  plan charge                          -          -          -          -              144       144 
 Profit for the period and 
  total comprehensive income           -          -          -          -            1,006     1,006 
                                ________   ________   ________   ________       __________   _______ 
 At 31 March 2020                    505        673         66      1,508          (4,133)   (1,381) 
 
 
 
 Consolidated Cash Flow Statement 
                                               6 months ended   6 months ended   Year ended 
                                                 30 September     30 September     31 March 
                                                         2020             2019         2020 
 
                                                      GBP'000          GBP'000      GBP'000 
 Cash flows from operating activities 
 Profit for the period                                    441              184        1,006 
 Taxation                                               (438)            (447)        (432) 
 Finance income                                           (3)              (9)         (19) 
 Finance costs                                            295              297          597 
 Depreciation of property, plant & 
  equipment                                                31               43           81 
 Depreciation of right of use assets                      129              114          235 
 Profit on disposal of assets held 
  for sale                                                  -             (50)         (50) 
 Employee share option plan charge                         45               54           99 
 Employee share incentive plan charge                      38               89          144 
 Employee unit incentive plan charge                       25               14           36 
 Employee unit incentive plan payment                       -                -          (4) 
 Decrease/(increase) in trade and other 
  receivables                                           3,810            2,009        (356) 
 Increase/(decrease) in trade and other 
  payables                                                  5               41        (299) 
 (Decrease)/increase in deferred revenue              (1,035)            (542)          299 
 (Decrease)/increase in lease liabilities                (31)               44           23 
                                                 ____________     ____________   __________ 
 Cash generated from operations                         3,312            1,841        1,360 
 Finance income                                             6                7           17 
 Finance costs on convertible loan 
  notes                                                 (199)            (199)        (400) 
 Finance costs on leases                                 (48)             (54)        (112) 
 Tax received/(paid)                                      438             (13)          432 
                                                 ____________     ____________   __________ 
 Net cash generated from operating 
  activities                                            3,509            1,582        1,297 
                                                 ____________     ____________   __________ 
 Investing activities 
 Proceeds on disposal of property, 
  plant and equipment                                       -              422          422 
 Purchases of property, plant and equipment              (21)             (39)         (46) 
                                                 ____________     ____________   __________ 
 Cash (used in)/generated from investing 
  activities                                             (21)              383          376 
                                                 ____________     ____________   __________ 
 Financing activities 
 Purchase of own shares                                  (14)                -            - 
 Proceeds from recycling of own shares                     26               17           38 
 Principal elements of lease payments                   (163)            (116)        (236) 
                                                 ____________     ____________   __________ 
 Cash used in financing activities                      (151)             (99)        (198) 
                                                 ____________     ____________   __________ 
 Net increase in cash and cash equivalents              3,337            1,866        1,475 
 Cash and cash equivalents at the beginning 
  of the period                                         4,758            3,228        3,228 
 Exchange (loss)/gains on cash and 
  cash equivalents                                       (28)               62           55 
                                                 ____________     ____________   __________ 
 Cash and cash equivalents at the end 
  of the period                                         8,067            5,156        4,758 
                                                 ____________     ____________   __________ 
 

Notes to the Consolidated Accounts

For the period ended 30 September 2020

   1   Preparation of the interim financial statements 

These interim financial statements have been prepared under IFRS as adopted by the European Union and on the basis of the accounting policies set out in the Group's Annual Report for the year ended 31 March 2020.

The Group's Annual Report for the year ended 31 March 2020 provides full details of significant judgements and estimates used in the application of the Group's accounting policies. There have been no significant changes to these judgements and estimates during the period.

These interim financial statements have not been audited and do not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 March 2019 have been delivered to the Registrar of Companies. The Auditors' Report on those accounts was unqualified and did not contain any statement under Section 498 (2) or (3) of the Companies Act 2006.

The Interim Report will be mailed to shareholders within the next few weeks and copies will be available on the website (www.intercede.com) and at the registered office: Intercede Group plc, Lutterworth Hall, St Mary's Road, Lutterworth, Leicestershire, LE17 4PS.

   2   Revenue 

All of the Group's revenue, operating profits and net liabilities originate from operations in the UK. The Directors consider that the activities of the Group constitute a single business segment.

The split of revenue by geographical destination of the end customer can be analysed as follows:

 
                   6 months ended   6 months ended   Year ended 
                     30 September     30 September     31 March 
                             2020             2019         2020 
                          GBP'000          GBP'000      GBP'000 
 
 UK                            66               39          131 
 Rest of Europe               509              578        1,126 
 North America              3,867            3,041        7,958 
 Rest of World                320              706        1,140 
                      ___________      ___________   __________ 
                            4,762            4,364       10,355 
                      ___________     ____________   __________ 
 
   3   Taxation 

Taxation represents the net effect of amounts receivable from HMRC in respect of R&D claims and US corporation tax payable.

   4   Earnings per share 

The calculations of earnings per ordinary share are based on the profit for the period and the weighted average number of ordinary shares in issue during each period.

 
                                      6 months ended   6 months ended   Year ended 
                                        30 September     30 September     31 March 
                                                2020             2019         2020 
                                             GBP'000          GBP'000      GBP'000 
 
 Profit for the period                           441              184        1,006 
                                         ___________      ___________   __________ 
 
                                              Number           Number       Number 
 Weighted average number of shares 
  - basic                                 50,482,281       50,482,281   50,482,281 
 - diluted                                53,183,844       53,279,049   53,232,738 
                                         ___________      ___________   __________ 
 
                                               Pence            Pence        Pence 
 Earnings per share 
  - basic                                       0.9p             0.4p         2.0p 
 - diluted                                      0.8p             0.3p         1.9p 
                                         ___________      ___________   __________ 
 

The weighted average number of shares used in the calculation of basic and diluted earnings per share for each period were calculated as follows:

 
                                      6 months ended   6 months ended   Year ended 
                                        30 September     30 September     31 March 
                                                2020             2019         2020 
                                              Number           Number       Number 
 
 Issued ordinary shares at start 
  of period                               50,523,926       50,523,926   50,523,926 
 Effect of treasury shares                  (41,645)         (41,645)     (41,645) 
 Effect of issue of ordinary 
  share capital                                    -                -            - 
                                         ___________      ___________   __________ 
 Weighted average number of shares 
  - basic                                 50,482,281       50,482,281   50,482,281 
                                         ___________      ___________   __________ 
 
   Add back effect of treasury 
   shares                                     41,645           41,645       41,645 
 Effect of share options in issue          2,659,918        2,755,123    2,708,812 
 Effect of convertible loan notes 
  in issue                                         -                -            - 
                                         ___________      ___________   __________ 
 Weighted average number of shares 
  - diluted                               53,183,844       53,279,049   53,232,738 
                                         ___________      ___________   __________ 
 
 

The convertible loan notes are anti-dilutive and have therefore been excluded from the calculation of diluted profit per share. Had the convertible loan notes been dilutive in nature, this would have increased the weighted average number of shares by 7,273,387 for each period.

   5   Dividend 

The Directors do not recommend the payment of a dividend.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

IR LXLLLBFLEFBF

(END) Dow Jones Newswires

November 24, 2020 02:00 ET (07:00 GMT)

1 Year Intercede Chart

1 Year Intercede Chart

1 Month Intercede Chart

1 Month Intercede Chart

Your Recent History

Delayed Upgrade Clock