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PTRO Pelatro Plc

1.02
0.00 (0.00%)
Last Updated: 00:00:00
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Pelatro Plc LSE:PTRO London Ordinary Share GB00BYXH8F66 ORD 2.5P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 1.02 0.80 1.20 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Pelatro PLC Half-year Report (1139N)

28/09/2021 6:59am

UK Regulatory


Pelatro (LSE:PTRO)
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TIDMPTRO

RNS Number : 1139N

Pelatro PLC

28 September 2021

28 September 2021

Pelatro Plc

("Pelatro" or the "Group")

Interim results

Pelatro Plc (AIM: PTRO), the precision marketing software specialist, is pleased to announce today its results for the 6 months ended 30 June 2021.

Financial highlights

   --              Revenue $3.46m (H1 2020: $2.29m) 
   --              Recurring revenue $2.43m (H1 2020: $1.54m), 70% of revenue 
   --              Adjusted EBITDA(*) $1.61m (H1 2020: $0.66m) 
   --              Adjusted EBITDA(*) margin 47% (H1 2020 29%) 
   --              Adjusted earnings per share 1.6c (H1 2020: (0.6)c) 

Operational highlights

   --              Transition to recurring revenue model almost complete 
   --              New Framework Agreement signed with major telco group 

-- Older contracts now being renewed, demonstrating "stickiness" and continuity of Pelatro products

Post period end highlights

   --              Completed placing of 8.38m shares to raise GBP3.35m (pre expenses) 
   --              Gross cash at 31 August $3.8m, net cash $2.8m after debt repayments of c. $0.6m 

Outlook

Management expectations for the year underpinned by:

   --              revenue visibility of c. $7.2m for full year (including $3.5m H1 2021) 
   --              current pipeline ** of c. $18m, of which c. $5m is from existing customers 

Richard Day, Non-executive Chairman of Pelatro commented:

"The momentum we have seen in the first half of the year is being maintained, with the Group being able to sell an expanded suite of products across our customer base. Our planned move into the mobile advertising space has started well and is throwing up some exciting prospects in non-telco areas as well. We very much appreciate the support we received from our shareholders with our GBP3.35m equity fund raising. With a sound business base, a wide range of quality products, excellent prospects and current visibility of c. $7.2m for this year as a whole, we have every confidence as we look forward to the end of the year and beyond to the longer term."

For further information contact:

 
 Pelatro Plc 
 Subash Menon, Managing Director                      c/o Cenkos 
 Nic Hellyer, Finance Director 
 
 Cenkos Securities plc (Nominated Adviser 
  and Broker)                                +44 (0)20 7397 8900 
 Stephen Keys / Mark Connelly (corporate 
  finance) 
 Michael Johnson (sales) 
 

* earnings before interest, tax, depreciation, amortisation, exceptional items and share-based payments

** "pipeline" is defined as opportunities where an RFI or RFP has been received and recurring revenue contracts are included as the sum of the likely revenue over 3 years in order to provide comparability with one-off license fee income

Notes to editors

The Pelatro Group was founded in March 2013 by Subash Menon and Sudeesh Yezhuvath with the objective of offering specialised, enterprise class software solutions for customer engagement principally to telcos who face a series of challenges including market maturity, saturation and customer churn.

Pelatro provides its "mViva" platform for use by customers in B2C and B2B applications, and is well positioned in the Customer Engagement space. Our technology orchestrates the digital journey of the customers of the telcos through contextual, relevant and real time offers and loyalty programs across multiple channels including websites, social media, apps and others.

For more information about Pelatro, visit www.pelatro.com

Managing Director's statement

Despite the continuing restriction on overseas air travel due to COVID-19 and hence the lack of face-to-face meetings we have continued to win new business throughout the first half of the year. Early in the period we won a recurring revenue contract for campaign management operations from an Asian telco (part of a large global group), which contract, with a number of additional services now taken on, is likely to produce revenue of around $1.5m over its life. In May, another existing customer group of Pelatro in Asia (with about 230 million subscribers) entered into a Framework Agreement ("FWA") with Pelatro for three years, which brought annual maintenance, support and previously ad hoc change requests under this group purchasing arrangement with a fixed amount to be paid quarterly for all base products and services. The FWA thus converted our entire product suite with the customer to recurring revenue and the contract will produce revenue of around $0.5m per year from 2022 onwards.

With these contracts and those from previous years our planned move into managed services business or other recurring revenue contracts in place of up-front licence arrangements is largely complete. We already have encouraging visibility for FY22 and the new business pipeline also reflects this move, with the majority of contracts signed in future expected to be of a recurring revenue nature.

Customers continue to be active with change requests, and overall some $1.3m of change requests have been contracted for execution this year. Likewise existing customers have been active in purchasing additional "modules" (such as Enterprise CLM, Analytics Workbench), which will contribute around $0.2m to revenue. Additionally, some of the Group's existing managed services contracts contain provisions for gain share revenue for Pelatro over and above the minimum contractual payments, which to date have produced revenue of around $0.25m but have the potential to produce revenue of around $0.5m during the year.

We have also now begun our move into mobile advertising, adding a new business stream to our existing operations in the mobile customer engagement space. We see this as a fast growing area and one which is highly complementary to our existing business. After the period end we raised GBP3.35m (gross) in new equity funding to invest in this new business area (as well as for general working capital for our overall business): since that time we have hired a senior manager to head the team and further recruitment is underway. Discussions are going on with prospective customers and we are seeing further opportunities to expand our offering to non-telco customers in multiple verticals. We are very encouraged at the level of interest we are seeing in this area from various brands including banks, retail and others.

Financial review

Revenue and profitability

In the six months to 30 June 2021 revenue increased by some 50% over the comparable period to $3.46m (H1 2020: $2.29m). Of the total revenue, approximately $2.43m (H1 2020: $1.54m) was recurring revenue, comprising managed services, post contract support and gain share revenue. Taking change requests of $1.01m into account virtually all H1 revenue was repeating revenue, though for the full year we expect to recognise some license-related revenue, for example from implementation of prior year contracts.

Underlying operating profit (excluding the impact of non-cash share-based payments, amortisation of customer-related intangible assets and exceptional items in H1 2020) was $0.76m (H1 2020: $0.11m loss).

Net cash and trade receivables

Cash generated from operating activities was approximately $0.70m after working capital movements (H1 2020: $1.18m); however, this is net of a payment of c. $0.7m relating to sales commissions due on a prior year contract. The financing requirements of the business were relatively modest; however the Group did take advantage of an Indian government COVID-related loan which was fully repaid after the period end along with a further $0.6m of debt out of the proceeds of the equity fund-raising of GBP3.35m.

Short-term trade receivables (including unbilled revenue but excluding contract assets) as at 30 June 2021 were $3.72m (31 December 2020 $3.34m).

Expenditure on non-current assets

Capitalised development expenditure was $1.39m (H1 2020: $1.21m); Group expenditure on fixed assets was a more normal $42,000 compared to the $0.79m in the comparative period which related to IT infrastructure for the Group's major managed services contract.

Current trading and outlook

Our strategy to focus more on recurring revenue has started to yield results. One obvious shift is in the weighting of expected revenue in the two halves of the year which has become more even. Another notable change is the reduction of "debtor days" which, whilst still an over-broad measure of trade receivables, does give a more meaningful figure when applied to debtors arising from recurring revenue contracts.

We are experiencing good momentum in our telco-facing business with existing customers increasing their investment in our solutions. Further, we are working on a strong pipeline with an expectation of winning a few more new customers in 2021 and securing recurring revenue contracts which should lead to attractive growth in 2022. We have made progress on the non-telco front, with one key hire and a number of engagements with non-telco corporates to help them with their marketing (advertising and campaigning) activities. In particular we have engaged with one corporate in the financial services sector and hope to provide our software to analyse its proprietary data. We expect to see further progress with non telco customers in the coming months and look to the future with confidence.

Group statement of comprehensive income

 
                                                  6 months      6 months      Year to 
                                                      to            to        December 
                                                   30 June       30 June        2020 
                                                     2021          2020 
                                          Note      $'000         $'000        $'000 
                                                 (unaudited)   (unaudited)   (audited) 
 
 Revenue                                   2           3,460         2,291       4,020 
 Cost of sales and provision 
  of services                                          (968)         (667)     (1,710) 
                                                     _______       _______     _______ 
 Gross profit                                          2,492         1,624       2,310 
 
 Adjusted administrative expenses                    (1,735)       (1,738)     (3,647) 
                                                     _______       _______     _______ 
 Adjusted operating profit/(loss)                        757         (114)     (1,337) 
 Exceptional items                                         -           149         149 
 Amortisation of acquisition-related 
  intangibles                                          (342)         (342)       (686) 
 Share-based payments                                   (15)          (27)        (32) 
                                                     _______       _______     _______ 
 Operating profit/(loss)                                 400         (334)     (1,906) 
 Finance income                            4              23            37          64 
 Finance expense                           5           (110)         (106)       (240) 
                                                     _______       _______     _______ 
 Profit/(loss) before taxation                           313         (403)     (2,082) 
 Income tax credit/(expense)                            (42)          (36)       (375) 
                                                     _______       _______     _______ 
 PROFIT/(LOSS) FOR THE PERIOD                            271         (439)     (2,457) 
 
 Other comprehensive income/(expense): 
 Items that may be reclassified 
  subsequently to profit or loss: 
 Exchange differences                                   (26)            21          25 
                                                     _______       _______     _______ 
 Other comprehensive income, 
  net of tax                                            (26)            21          25 
 
 TOTAL COMPREHENSIVE INCOME/(LOSS) 
  FOR THE PERIOD                                         245         (418)     (2,432) 
 
 Earnings/(loss) per share 
 Reported 
 Basic and diluted                         6            0.7c        (1.3)c      (7.2)c 
 
 Adjusted 
 Basic and diluted                         6            1.6c        (0.6)c      (7.2)c 
 
 

Group statement of financial position

 
                                                As at         As at      As at 31 
                                               30 June       30 June      December 
                                                 2021          2020         2020 
                                      Note      $'000         $'000        $'000 
                                             (unaudited)   (unaudited)   (audited) 
 Assets 
 Non-current assets 
 Intangible assets                     7          12,052        11,132      11,649 
 Property, plant and equipment                     1,095         1,220       1,218 
 Right-of-use assets                                 238           240         308 
 Deferred tax assets                                  16            92          16 
 Contract assets                       8             461           446         751 
 Trade and other receivables                          91           238         149 
                                                 _______       _______     _______ 
                                                  13,953        13,368      14,091 
 Current assets 
 Contract assets                       8             733           246         609 
 Trade receivables                                 3,716         4,800       3,335 
 Other assets                                        387           576         485 
 Cash and cash equivalents                           784           749       1,805 
                                                 _______       _______     _______ 
                                                   5,620         6,371       6,234 
 
 Total assets                                     19,573        19,739      20,325 
 
 Liabilities 
 Non-current liabilities 
 Borrowings                            9           1,031         1,145       1,196 
 Lease liabilities                                   117           104         172 
 Contract liabilities                                139           228         207 
 Long-term provisions                  11            149           113         173 
                                                 _______       _______     _______ 
                                                   1,436         1,590       1,748 
 
 Current liabilities 
 Borrowings                            9             504           148         244 
 Lease liabilities                                   139           171         174 
 Trade and other payables              10            356           803       1,093 
 Provisions                            11            198            89         163 
 Contract liabilities                                289           337         495 
 Other financial liabilities                           -           801           - 
                                                 _______       _______     _______ 
                                                   1,486         2,349       2,169 
 
 Total liabilities                                 2,922         3,939       3,917 
 
 NET ASSETS                                       16,651        15,800      16,408 
 
 
 Issued share capital and reserves 
 Share capital                                     1,212         1,065       1,212 
 Share premium                                    14,045        11,603      14,045 
 Other reserves                                    (611)         (606)       (583) 
 Retained earnings                                 2,005         3,738       1,734 
                                                 _______       _______     _______ 
 TOTAL EQUITY                                     16,651        15,800      16,408 
 

Group statement of cash flows

 
                                               6 months      6 months      Year to 
                                                   to            to        December 
                                                30 June       30 June        2020 
                                                  2021          2020 
                                                 $'000         $'000        $'000 
                                              (unaudited)   (unaudited)   (audited) 
 Cash flows from operating activities 
 Profit/(loss) for the period                         271         (439)     (2,457) 
 Adjustments for: 
 Income tax expense/(credit) recognised 
  in profit or loss                                    42            45         375 
 Finance income                                       (4)          (37)        (20) 
 Finance costs                                        107            87         232 
 Depreciation of tangible non-current 
  assets                                              210           135         366 
 Profit on disposal of fixed assets                     -             -        (10) 
 Amortisation of intangible non-current 
  assets                                              991           993       2,122 
 Fair value adjustment on contingent 
  consideration                                         -         (149)       (149) 
 Share-based payments                                  15            27          32 
 Foreign exchange (gains)/losses                       10             6          25 
                                                  _______       _______     _______ 
 Operating cash flows before movements 
  in working capital                                1,642           668         516 
 (Increase)/decrease in trade and 
  other receivables                                 (199)           416       2,229 
 (Increase)/decrease in contract assets               173           122       (544) 
 Increase/(decrease) in trade and 
  other payables                                    (623)           386         676 
 Increase in contract liabilities                   (293)         (413)       (276) 
                                                  _______       _______     _______ 
 Cash generated from operating activities             700         1,179       2,601 
 
 Income tax paid                                    (191)         (110)       (339) 
                                                  _______       _______     _______ 
 Net cash generated from operating 
  activities                                          509         1,069       2,262 
 
 Cash flows from investing activities 
 Development of intangible assets                 (1,354)       (1,210)     (2,807) 
 Purchase of intangible assets                        (3)           (3)         (9) 
 Acquisition of property, plant and 
  equipment                                          (42)         (791)       (902) 
 Payment of earn out consideration 
  relating to prior period acquisition                  -             -       (851) 
                                                  _______       _______     _______ 
 Net cash used in investing activities            (1,399)       (2,004)     (4,569) 
 
 Cash flows from financing activities 
 Proceeds from issue of ordinary shares, 
  net of issue costs                                    -             -       2,589 
 Proceeds from borrowings                             226         1,117       1,753 
 Repayment of borrowings                             (81)         (301)       (919) 
 Repayments of principal on lease 
  liabilities                                        (85)          (93)       (171) 
 Interest received                                      4            37          20 
 Interest paid                                      (125)          (61)       (185) 
 Less interest accrued but not paid                     -            16           - 
 Interest expense on lease liabilities                (9)           (8)        (16) 
                                                  _______       _______     _______ 
 Net cash generated by/(used in) financing 
  activities                                         (70)           707       3,071 
 
 Net increase/(decrease) in cash and 
  cash equivalents                                  (960)         (228)         764 
 Net foreign exchange differences                    (61)          (43)        (60) 
 Cash and cash equivalents at beginning 
  of period                                         1,805           934       1,101 
                                                  _______       _______     _______ 
 Cash and cash equivalents at end 
  of period                                           784           663       1,805 
 
 Comprising: 
 Cash at bank and in hand                             945           749       1,805 
 Overdraft                                          (161)          (86)           - 
                                                  _______       _______     _______ 
                                                      784           663       1,805 
 

Group statement of changes in equity

 
                             Share     Share    Exchange   Merger   Share-based  Retained   Total 
                             capital   premium   reserve   reserve    payments    profits 
                                                                      reserve 
                             $'000     $'000     $'000     $'000       $'000      $'000     $'000 
Balance at 1 January 
 2020                        1,065     11,603    (216)     (527)        100       4,177    16,202 
(Loss) after taxation 
 for the period                -         -         -         -           -        (439)     (439) 
Share-based payments           -         -         -         -          50          -        50 
Other comprehensive 
 income: 
Exchange differences           -         -        (13)       -           -          -       (13) 
                             _____     _____     _____     _____       _____      _____     _____ 
Balance at 30 June 
 2020                        1,065     11,603    (229)     (527)        150       3,738    15,800 
(Loss) after taxation 
 for the period                -         -         -         -           -       (2,018)   (2,018) 
Share-based payments           -         -         -         -          48          -        48 
Transfer on lapse of 
 share options                                                         (14)         14        - 
Other comprehensive 
 income: 
Exchange differences           -         -        (11)       -           -          -       (11) 
Transactions with owners: 
Shares issued by Pelatro 
 Plc for cash                 147      2,620       -         -           -          -       2,767 
Issue costs                    -       (178)       -         -           -          -       (178) 
                             _____     _____     _____     _____       _____      _____     _____ 
Balance at 31 December 
 2020                        1,212     14,045    (240)     (527)        184       1,734    16,408 
Profit after taxation 
 for the period                -         -         -         -           -         271       271 
Share-based payments           -         -         -         -          51          -        51 
Other comprehensive 
 income: 
Exchange differences           -         -        (79)       -           -          -       (79) 
                             _____     _____     _____     _____       _____      _____     _____ 
Balance at 30 June 
 2021                        1,212     14,045    (319)     (527)        235       2,005    16,651 
 

Notes to the Group financial statements

   1              Basis of preparation 

The Group has prepared its interim financial statements (the "statements") for the 6 months ended 30 June 2021 (the "interim results") in accordance with the AIM Rules of the London Stock Exchange and not in accordance with IAS34 Interim Financial Reporting ; the statements are prepared in accordance with the recognition and measurement principles of International Accounting Standards in conformity with the requirements of the Companies Act 2006, but do not include all the disclosures that would otherwise be required

The statements have been prepared under the historical cost convention. The accounting policies adopted in the statements are consistent with those adopted in the Group's Annual Report and Financial Statements for the year ended 31 December 2020 and those which will be adopted in the preparation of the annual report for the year ending 31 December 2021. The statements do not constitute full statutory accounts within the meaning of section 434 of the Companies Act 2006 and are unaudited.

Going concern

A gradual "return to normal" on the part of our customers, our successful adaptation to new working methods and the global rollout of vaccination programmes means that the Directors consider that coronavirus no longer presents a material downside risk to the Group. The Directors have considered trading and cash flow forecasts prepared for the Group, and based on these, and confirmed banking facilities, are satisfied that the Group will continue to be able to meet its liabilities as they fall due for at least one year from the date of these results. On this basis, they consider it appropriate to have adopted the going concern basis in the preparation of the interim results, which were approved by the Board of Directors on 27 September 2021.

Comparative financial information

The comparative financial information presented herein for the year ended 31 December 2020 does not constitute full statutory accounts for that period. Statutory accounts for the year ended 31 December 2020 have been filed with the Registrar of Companies. These statutory accounts carried an unqualified Auditor's Report, did not draw attention to any matters by way of emphasis and did not contain a statement under Section 498(2) or 498(3) of the Companies Act 2006.

   2              Segmental analysis 

Revenue by type

 
                                 6 months   6 months     Year to 
                                    to         to       31 December 
                                  30 June    30 June       2020 
                                   2021       2020 
                                  $'000      $'000        $'000 
 
 Recurring software sales and 
  services                          1,922        817          1,528 
 Maintenance and support              506        719          1,323 
                                  _______    _______        _______ 
 Total recurring revenues           2,428      1,536          2,851 
 Change requests                    1,009        331            426 
                                  _______    _______        _______ 
 Total repeating revenues           3,437      1,867          3,277 
 Licence related income                23        424            698 
 Consulting                             -          -             45 
                                  _______    _______        _______ 
                                    3,460      2,291          4,020 
 

Revenue by geography

The Group recognises revenue in seven geographical regions based on the location of customers, as set out in the following table:

 
                    6 months   6 months     Year to 
                       to         to       31 December 
                     30 June    30 June       2020 
                      2021       2020 
                     $'000      $'000        $'000 
 
 Caribbean                64         60            145 
 Central Asia            287         32            175 
 Eastern Europe           75         74            168 
 Africa                  152         42             64 
 South Asia            1,102        923          1,096 
 South East Asia       1,780      1,160          2,372 
                     _______    _______        _______ 
                       3,460      2,291          4,020 
 
   3              Non-GAAP profit measures and exceptional items 

Reconciliation of operating profit to earnings before interest, taxation, depreciation and amortisation ("EBITDA"):

 
                                      6 months   6 months     Year to 
                                         to         to       31 December 
                                       30 June    30 June       2020 
                                        2021       2020 
                                       $'000      $'000        $'000 
 Operating profit/(loss)                   400      (334)        (1,906) 
 Adjusted for: 
  - amortisation and depreciation        1,175      1,091          2,420 
                                       _______    _______        _______ 
 EBITDA                                  1,575        757            514 
 Other adjustments: 
  - revenue recognised as interest 
   under IFRS 15                            19         22             44 
 Expensed share-based payments              15         27             32 
 Exceptional items: 
 - gain on adjustment of deferred 
  consideration liability                    -      (149)          (149) 
                                       _______    _______        _______ 
 Adjusted EBITDA                         1,609        657            441 
 

The criteria for adjusting operating income or expenses in the calculation of adjusted EBITDA are that they are material and either (i) arise from an irregular and significant event or (ii) are such that the income/cost is recognised in a pattern that is unrelated to the resulting operational performance. Materiality is defined as an amount which, to a user, would influence decision-making based on, and understandability of, the financial statements.

Exceptional items are treated as exceptional by reason of their nature and are excluded from the calculation of adjusted EBITDA (and adjusted earnings per share below) to allow a better understanding of comparable year-on-year trading and thereby an assessment of the underlying trends in the Group's financial performance. These measures also provide consistency with the Group's internal management reporting.

Adjustment for share-based payment expense is made because, once the cost has been calculated for a given grant of options, the Directors cannot influence the share-based payment charge incurred in subsequent years relating to that grant; also the value of the share option to the employee differs considerably in value and timing from the actual cash cost to the Group.

Elements of depreciation on right-to-use assets recognised under IFRS 16 and share-based payment expense are deemed to be directly attributable overheads for the purposes of capitalising relevant expenditure on developing intangible assets (see Note 7). The figures above are shown net of amounts so capitalised.

   4              Finance income 
 
                                             6 months      6 months       Year to 
                                                 to            to        31 December 
                                              30 June       30 June         2020 
                                                2021          2020 
                                               $'000         $'000         $'000 
                                            (unaudited)   (unaudited)    (audited) 
 Interest receivable on interest-bearing 
  deposits                                            4            15             20 
 Notional interest accruing on 
  contracts with a significant 
  financing component                                19            22             44 
                                                _______       _______        _______ 
 Total finance income                                23            37             64 
 
   5              Finance expense 
 
                                      6 months      6 months       Year to 
                                          to            to        31 December 
                                       30 June       30 June         2020 
                                         2021          2020 
                                        $'000         $'000         $'000 
                                     (unaudited)   (unaudited)    (audited) 
 
 Interest and finance charges 
  paid or payable on borrowings              101            79            198 
 Interest on lease liabilities 
  under IFRS 16                               13            15             31 
 Less: amounts capitalised as 
  intangible assets                          (4)           (7)           (14) 
 Acquisition-related financing 
  expense - unwinding of discount 
  on financial liabilities                     -            19             25 
                                         _______       _______        _______ 
 Total finance expense                       110           106            240 
 
   6              Earnings per share 

Earnings per share - reported ("EPS")

The calculation of the basic and diluted EPS is based on the following data:

 
                                          6 months     6 months      Year to 
                                             to           to        31 December 
                                           30 June      30 June        2020 
                                            2021         2020 
                                           $'000        $'000         $'000 
 Earnings 
 Earnings for the purposes of 
  basic and diluted earnings per 
  share being net profit attributable 
  to equity holders of the parent               271        (439)        (2,457) 
 
 Number of shares 
 Weighted average number of ordinary 
  shares for the purposes of basic 
  and diluted earnings per share         37,032,431   32,532,431     34,136,617 
 

The weighted average number of shares and the loss for the year for the purposes of calculating the fully diluted earnings per share are the same as for the basic loss per share calculation. This is because the outstanding share options would have the effect of reducing the loss per ordinary share and would therefore not be dilutive under IAS33.

Adjusted earnings per share

Adjusted EPS is calculated as follows:

 
                                           6 months     6 months      Year to 
                                              to           to        31 December 
                                            30 June      30 June        2020 
                                             2021         2020 
                                            $'000        $'000         $'000 
 Earnings attributable to owners 
  of the Parent                                  271        (439)        (2,457) 
 Adjusting items: 
  - exceptional items                              -        (149)          (149) 
 - expensed share-based payments                  15           27             32 
 - finance charge on liabilities 
  relating to 
  contingent consideration                         -           19             25 
 - amortisation of acquisition-related 
  intangibles                                    342          342            686 
 - prior year adjustments to 
  tax charge                                    (18)            -           (18) 
                                             _______      _______        _______ 
 Adjusted earnings attributable 
  to owners of the Parent                        610        (200)        (1,881) 
 
 Weighted number of ordinary 
  shares in issue                         37,032,431   32,532,431     34,136,617 
 
 Adjusted earnings per share 
  attributable to shareholders 
  (basic and diluted)                           1.6c       (0.6)c         (5.5)c 
 

The criteria for inclusion of adjusting items in the calculation of adjusted EPS are the same as those relating to the calculation of adjusted EBITDA as set out in Note 3. Additionally, amortisation of acquisition-related intangibles relates to the amortisation of intangible assets in respect of customer relationships which are recognised on a business combination and are non-cash in nature.

The Group has one category of potentially dilutive ordinary share, being those share options granted to employees where the exercise price (plus the remaining expected charge to profit under IFRS 2) is less than the average price of the Company's ordinary shares during the period.

   7              Intangible assets 

Intangible assets comprise capitalised development costs, acquired software, customer relationships and goodwill.

 
                     Development     Third     Patents      Customer      Goodwill    Total 
                        costs        party                relationships 
                                    software 
                        $'000        $'000      $'000        $'000         $'000      $'000 
 Cost 
 At 1 January 
  2021                     9,263         110        27            6,862        470    16,732 
 Additions                 1,390           6         -                -          -     1,396 
 Foreign exchange              -         (1)         -                -          -       (1) 
                         _______     _______   _______          _______    _______   _______ 
 At 30 June 
  2021                    10,653         115        27            6,862        470    18,127 
 
 Amortisation 
  or impairment 
 At 1 January 
  2021                   (3,373)        (52)         -          (1,658)          -   (5,083) 
 Charge for 
  the period               (639)        (10)         -            (343)          -     (992) 
                         _______     _______   _______          _______    _______   _______ 
 At 30 June 
  2021                   (4,012)        (62)         -          (2,001)          -   (6,075) 
 
 Net carrying 
  amount 
 At 30 June 
  2021                     6,641          53        27            4,861        470    12,052 
 
 At 1 January 
  2021                     5,890          58        27            5,204        470    11,649 
 
   8              Contract assets 

Contract assets are comprised as follows:

 
                                         As at      As at     As at 31 
                                         30 June    30 June    December 
                                          2021       2020        2020 
                                         $'000      $'000       $'000 
 Due after one year 
 Contract assets relating to revenue          98        446         311 
 Contract fulfilment assets                  363          -         440 
                                         _______    _______     _______ 
                                             461        446         751 
 
 Due within one year 
 Contract assets relating to revenue         581        246         457 
 Contract fulfilment assets                  152          -         152 
                                         _______    _______     _______ 
                                             733        246         609 
 
   9              Loans and borrowings 
 
                                   As at      As at     As at 31 
                                   30 June    30 June    December 
                                    2021       2020        2020 
                                   $'000      $'000       $'000 
 Non-current liabilities 
 Secured term loans                    237          -         277 
 Unsecured borrowings                  794      1,145         919 
                                   _______    _______     _______ 
                                     1,031      1,145       1,196 
 Current liabilities 
 Current portion of term loans         138         62          99 
 Unsecured borrowings                  366         86         145 
                                   _______    _______     _______ 
                                       504        148         244 
 
 Total loans and borrowings          1,535      1,293       1,440 
 
   10           Trade and other payables 
 
                                    As at      As at     As at 31 
                                    30 June    30 June    December 
                                     2021       2020        2020 
                                    $'000      $'000       $'000 
 Due within a year 
 Trade payables                          30         40         810 
 Other payables                         326        763         283 
                                    _______    _______     _______ 
 Total trade and other payables         356        803       1,093 
 
   11           Provisions 
 
 Long-term               As at      As at     As at 31 
                         30 June    30 June    December 
                          2021       2020        2020 
                         $'000      $'000       $'000 
 
 Employee gratuities         108         76         116 
 Leave encashment             41         37          57 
                         _______    _______     _______ 
                             149        113         173 
 
 
 Short-term                           As at      As at     As at 31 
                                      30 June    30 June    December 
                                       2021       2020        2020 
                                      $'000      $'000       $'000 
 
 Employee gratuities                       12          9          13 
 Leave encashment                          17         15          24 
 Other provisions (including tax)         169         65         126 
                                      _______    _______     _______ 
                                          198         89         163 
 
   12           Post balance sheet events 

Other than disclosed above there have been no events subsequent to the reporting date which would have a material impact on these interim financial results.

[END]

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