We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Thruvision Group Plc | LSE:THRU | London | Ordinary Share | GB00B627R876 | 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% | 15.50 | 15.00 | 16.00 | 16.00 | 15.50 | 15.50 | 8,375 | 08:00:11 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Security Systems Service | 12.42M | -805k | -0.0050 | -31.00 | 24.96M |
TIDMTHRU
RNS Number : 8905T
Thruvision Group PLC
20 November 2023
20 November 2023
Thruvision Group plc
Interim Results
Thruvision Group plc (AIM: THRU, "Thruvision" or the "Group"), the leading provider of walk-through security technology, today announces unaudited results for the six months ended 30 September 2023 (H1 of 2024 financial year - H1 2024) .
Highlights
-- Revenue grew 28% to GBP3.5 million (H1 2023: GBP2.8 million) driven mainly by: -- Customs market revenue growing 16% to GBP2.0 million (H1 2023: GBP1.7 million) underpinned by a major contract win with a new Asian customer. -- Entrance security market seeing renewed demand with revenue increasing to GBP0.8 million (H1 2023: GBP0.04 million). -- Adjusted gross margin(1) up 5.0pp to 53.9% (H1 2023: 48.9%) helped by particularly positive pricing mix. -- Adjusted EBITDA loss(1) reduced slightly to GBP1.4 million (H1 2023: loss GBP1.6 million). -- Cash balance at 30 September 2023 was GBP2.4 million (31 March 2023: GBP2.8 million). -- GBP3.2 million (gross) equity fund raising on 26 October 2023 from Pentland Group amongst other investors to support continued investment in sales and marketing capability and delivering key new software functionality as well as providing additional working capital flexibility and strengthening the balance sheet. -- Pentland Group, owner of numerous consumer brands and majority shareholder in one of the Group's longest-standing customers, JD Sports, has subsequently increased its strategic shareholding to 10%. H1 2024 H1 2023 Unaudited Unaudited GBPm GBPm Change ------------------------------------- ---------------------------------- -------------- ----------- Adjusted measures(1) : Adjusted gross profit 1.9 1.4 +41% Adjusted gross margin 53.9% 48.9% +5.0pp Adjusted EBITDA loss (1.4) (1.6) +11% Adjusted loss before tax (1.6) (1.8) +11% Statutory measures: Revenue 3.5 2.8 +28% Gross profit(2) 1.6 1.1 +47% Gross margin(2) 45.7% 39.8% +5.9pp Operating loss (1.6) (1.9) +18% Loss before tax (1.6) (1.9) +17% ------------------------------------- ---------------------------------- -------------- -----------
(1) Alternative performance measures ('APMs') are used consistently throughout this announcement and are referred to as 'adjusted'. These are defined in full and reconciled to the reported statutory measures in the Appendix.
(2) As restated see note 5 in the interim financial statements.
Commenting on the results, Colin Evans, Chief Executive of Thruvision, said:
"Our proven track record in a number of international markets has allowed us to deliver a resilient performance despite the US Customs setback that we reported in October. In addition to further new Customs agency wins elsewhere, we have seen a marked pick-up in activity in our Entrance Security market, driven by heightened geopolitical tension. To capitalise fully on this, we are accelerating our appointment of new Value-Added Resellers to broaden our reach geographically.
"Given JD Sports' history as a long-term Thruvision customer, Pentland Group's strategic investment provided a clear endorsement of the value of our technology, particularly for the retail market. This strengthening of the balance sheet, combined with our order backlog and healthy sales pipeline, gives us confidence that we will grow strongly into the second half and beyond."
For further information please contact:
Thruvision Group plc +44 (0)1235 425 400
Colin Evans, Chief Executive
Victoria Balchin, Chief Financial Officer
Investec Bank plc +44 (0)20 7597 5970
Patrick Robb / James Rudd / Sebastian Lawrence
Meare Consulting +44 (0)7990 858 548
Adrian Duffield
About Thruvision
Thruvision is the leading developer, manufacturer and supplier of walk-through security technology. Its technology is deployed in more than 20 countries around the world by government and commercial organisations in a wide range of security situations, where large numbers of people need to be screened quickly, safely and efficiently. Thruvision's patented technology is uniquely capable of detecting concealed objects in real time using an advanced AI-based detection algorithm. The Group has offices and manufacturing capabilities in the UK and US.
Important information
This announcement may include statements that are, or may be deemed to be, "forward-looking statements" (including words such as "believe", "expect", "estimate", "intend", "anticipate" and words of similar meaning). By their nature, forward-looking statements involve risk and uncertainty since they relate to future events and circumstances, and actual results may, and often do, differ materially from any forward-looking statements. Any forward-looking statements in this announcement reflect management's view with respect to future events as at the date of this announcement. Save as required by applicable law, the Company undertakes no obligation to publicly revise any forward-looking statements in this announcement, whether following any change in its expectations or to reflect events or circumstances after the date of this announcement.
Interim report
Headlines
The Group demonstrated a resilient performance in the six-month period to 30 September 2023. The business performed well and benefited from increasing demand from a broader base of customers, mainly as a result of a deteriorating security environment globally.
Revenue grew by 28% to GBP3.5 million (H1 2023: GBP2.8 million), with an order backlog at 30 September of GBP1.0 million expected to be delivered in the third quarter. Cash at 30 September 2023 was GBP2.4 million (31 March 2023: GBP2.8 million).
In particular, we saw increased international government activity, including initial orders from two new Customs agencies and renewed focus on improving entrance security across government and non-government customers. We continued to make good progress in R&D ahead of a planned new product launch later this financial year.
Broader US Federal budget challenges meant that, as we reported in October, CBP did not place an anticipated order by the end of the first half. We remain engaged with them to ensure that they derive maximum value from our technology and are in a position to resume purchasing when the current border crisis allows.
Strategic update
Our strategy is to build on our market-leading position as a developer, manufacturer and supplier of walk-through security technology. We aim to become a mainstream provider to, and increase our market-share in, a number of growing and established international markets. The continued investment in improving our patented AI-enhanced Terahertz (THz) imaging technology will maintain our significant competitive advantage.
The increased geopolitical instability around the world has added further impetus to the Entrance Security market where organisations are looking for proven capability to detect weapons and explosives. This market was somewhat dormant through COVID, but our strong brand and proven capability has meant we have seen growing interest and demand in the last few months.
Retailers continue to manage a wide range of conflicting priorities, including the challenging economic backdrop which is impacting their investment plans. Our recently published UK-focused research, undertaken with Retail Economics, shows retail theft is forecast to be GBP7.9bn this year with some 40% of this attributable to employees. We continue to focus on retailers who recognise that Thruvision offers an effective and easy to install way to reduce, and deter, employee theft while providing an attractive in-year return on investment.
We are seeing continued interest from Customs agencies internationally. This is driven by the ongoing focus on border control and migration management and counter-narcotics operations.
Given the increasing awareness of our unique technology and growing demand from an increasing number of countries , we have accelerated the process of appointing Value-Added Resellers (VARs) to support the international opportunities and our widening geographical footprint across Europe, Middle East and Asia.
Strategic investor and fund raising
On 26 October 2023, the Group raised GBP3.2 million gross in new equity to support its continued investment in sales and marketing capability and delivering key new software functionality as well as providing additional working capital flexibility and strengthening the balance sheet.
After starting discussions earlier in the summer, Pentland Group became a strategic investor in the Group through this fund-raising. JD Sports, which is majority owned by Pentland Group, was one of Thruvision's earliest customers and remains a strong advocate of our technology. Pentland Group's strategic investment is a clear endorsement of our capabilities and demonstration of the value of our technology, particularly for the retail market.
Current trading and outlook
Business performance is resilient and demonstrating good levels of non-CBP growth. With geopolitical risks driving a strong bounce-back performance in our Entrance Security market, and continued strategic progress in Retail Distribution, our unique technology is being successfully used by a growing number of major international organisations.
As we outlined on 2 October 2023, the anticipated order from CBP was not awarded in September which reduced our expectations for the Group's full year revenue.
However, the recent strengthening of the balance sheet, combined with our order backlog and healthy sales pipeline, gives us confidence that we will grow strongly into the second half and beyond .
Operational review
We operate in four distinct markets where there is the need to detect, quickly and reliably, a range of different items being concealed in clothing. These markets are driven by different factors and protect us against changing political and economic circumstances.
Customs
Our Customs market revenue grew by 16%, underpinned by a major contract win with a new Asian customer and another from a new Central American customs agency, maintaining our momentum in this global market. In addition, we are expecting further orders in H2 with existing Asian customers who are intending to augment and/or upgrade their existing fleets of Thruvision units.
Retail Distribution
In Retail Distribution, the Group added new customers including GXO, the global logistics provider, and TD Synnex, a global technology provider. We continue to receive orders from existing customers in the UK and Europe and expand our sales pipeline with new names in the US. With a new product launch planned later this year, we expect to see further upgrading by existing customers moving forward.
On 13 November 2023, Thruvision and Retail Economics published a report which forecast that the overall theft would cost UK retailers some GBP7.9bn this year, with employee theft accounting for some 40% of this total. Around two thirds of those interviewed in the survey believe that over the past decade the opportunity for crime in DCs has accelerated and 70% state that they have seen an increase in organised crime activities in DCs.
Our technology specifically addresses this major problem for retailers and we expect this report to stimulate further interest in Thruvision given the proven, rapid return on investment that we can demonstrate.
Entrance Security
Given the general deterioration in the international security situation, we have seen increased interest and sales activity in VIP locations, prisons, critical national infrastructure sites, natural resources and high security buildings. This interest is driven by the heightened threat, once more, of weapons and explosives being brought into facilities, and the fact that Thruvision is recognised as a fully proven means of detecting such items at a safe distance.
We secured new customers in Africa and Asia and have seen further order flow from existing Middle East customers in H1 and since the period end. The current level of sales enquiries suggest that this is set to continue into the second half.
Encouraged by this broadening demand, we are accelerating the rate at which we sign-up regional VARs, focusing on those that new team members have worked with successfully in the past. This ensures that we can be confident that these new partners bring strong relationships with organisations we wish to focus on and excellent technical capability in terms of supporting our equipment in the field once deployed.
Aviation
With a formal change in US Government policy now in progress, US airports are soon to be required to upgrade their approach to the security screening of staff as they go to work on the "airside" of an airport. Although in the early stages of development, this opportunity is expected to mature over the next two years and, based on the four years of operational experience we have gained with Seattle Tacoma International Airport, we are very well placed to provide approved technology to meet this requirement.
Although we have an established solution for security screening of employees in airports in the US, we require formal US Government Transportation Security Administration accreditation to compete with airport body scanners for the passenger screening market. We started this process in 2020 and, after several COVID-related delays, it has now restarted. Some further progress has been made although this remains a protracted process.
Product R&D and Intellectual Property ('IP')
We remain on track to launch our next generation camera range early in 2024. This will provide an upgraded hardware platform in addition to new software functionality which will be offered on a chargeable annual licence basis.
Financial review
Summary
Revenue for the six months ended 30 September 2023 was up 28% to GBP3.5 million (H1 2023: GBP2.8 million) principally driven by significant growth in Entrance Security sales. On a constant currency basis revenue was up 29%.
Adjusted EBITDA loss improved by 11% or GBP0.2 million to GBP1.4 million (H1 2023: loss GBP1.6 million), with adjusted gross profit growth up GBP0.5 million to GBP1.9 million (H1 2023: GBP1.4 million) more than offsetting overheads which were up, as planned, by GBP0.3 million.
Adjusted gross margin improved by 5pp to 53.9% (H1 2023: 48.9%) driven by a pricing mix benefit. Statutory gross margin was up 5.9pp to 45.7%. Operating loss was GBP1.6 million (H1 2023: loss GBP1.9 million).
Cash as at 30 September 2023 was GBP2.4 million (31 March 2023: GBP2.8 million), with cash as at 17 November 2023 of
GBP4.3 million. Trade and other receivables were GBP2.9 million (31 March 2023: GBP4.3 million) and reflect the receipt of all outstanding balances at 31 March from CBP during the period offset by recent sales. Cash and the balance sheet more generally have been strengthened following the fundraise on 26 October 2023.
Revenue
Revenue is split between the two principal activities below:
6 months ended 6 months ended Year ended 30 September 30 September 31 March 2023 2022 2023 GBP'000 GBP'000 GBP'000 ------------------------- -------------- -------------- ---------- Product 3,404 2,364 11,782 Support and Development 141 407 638 ------------------------- -------------- -------------- ---------- Total 3,545 2,771 12,420 ------------------------- -------------- -------------- ----------
Revenue is split by market sector and geographical region below:
6 months ended 6 months ended Year ended 30 September 30 September 31 March 2023 2022 2023 Revenue by market sector GBP'000 GBP'000 GBP'000 -------------------------- ------------- -------------- ---------- Retail Distribution 799 1,025 2,429 Customs 1,978 1,699 9,165 Aviation 6 12 246 Entrance Security 762 35 580 Total 3,545 2,771 12,420 -------------------------- ------------- -------------- ---------- 6 months ended 6 months ended Year ended 30 September 30 September 31 March 2023 2022 2023 Revenue by geographical region GBP'000 GBP'000 GBP'000 -------------------------------- ------------- -------------- ---------- UK and Europe 974 990 2,249 Americas 235 1,759 9,223 Rest of World 2,336 22 948 Total 3,545 2,771 12,420 -------------------------------- ------------- -------------- ----------
Revenue was adversely impacted by translational exchange as the GBP depreciated against the US$ and decreased revenue by approximately GBP0.03 million, compared to the prior year average exchange rate. This resulted in constant currency growth in revenue of 29% and reported revenue growth of 28%.
Gross profit
Adjusted gross profit improved by GBP0.5 million with a volume impact of GBP0.3 million and mix impact of GBP0.2 million.
Adjusted gross margin improved by 5.0pp to 53.9% (H1 2023: 48.9%) and reflected the positive price mix. Statutory gross margin was 5.9pp higher at 45.7% (H1 2023: 39.8%) also reflecting operational leverage.
6 months ended 6 months ended Year ended 30 September 30 September 31 March 2023 2022 2023 GBP'000 GBP'000 GBP'000 ------------------------ -------------- -------------- ---------- Revenue 3,545 2,771 12,420 Adjusted gross profit 1,912 1,356 6,401 Adjusted gross margin 53.9% 48.9% 51.5% ------------------------ -------------- -------------- ---------- Statutory gross profit 1,621 1,104 5,837 Statutory gross margin 45.7% 39.8% 47.0% ------------------------ -------------- -------------- ----------
Administrative expenses
Administrative expenses increased by 6% to GBP3.2 million with overheads up by 13% to GBP3.0 million. As well as overheads, administrative expenses include share-based payment charges or credits, depreciation and amortisation and impairment of intangible assets. Overheads as a proportion of sales were 86% (H1 2023: 98%; 2023: 49%) reflecting the growth and phasing of revenue and continued tight control.
Higher sales and marketing expenditure was impacted by higher sales commission resulting from the growth in orders. Management costs decreased with one-off CFO replacement costs in the prior period, whilst PLC costs were up due to higher insurance costs. Property and administration costs were higher resulting mainly from additional finance team headcount supporting growth in the business.
Adjusted overheads are analysed as follows:
6 months ended 6 months ended Year ended 30 September 30 September 31 March 2023 2022 2023 GBP'000 GBP'000 GBP'000 ------------------------------- -------------- -------------- ---------- Sales and marketing 1,122 1,085 2,215 Engineering 607 589 1,270 Management 466 666 1,135 PLC costs 414 354 829 Property and administration 307 191 417 Bonus 47 20 458 Foreign exchange losses / (gains) 81 (203) (198) ------------------------------- -------------- -------------- ---------- Overheads 3,044 2,702 6,126 Depreciation and amortisation 205 238 569 Share based payment (credit) / charge (72) 51 96 Impairment of intangible assets - - 36 Administrative expenses 3,177 2,991 6,827 ------------------------------- -------------- -------------- ----------
Loss before and after tax and loss per share
Adjusted loss before tax of GBP1.6 million improved by 11% (H1 2023: loss GBP1.8 million) with statutory loss before tax of GBP1.6 million improving by 17% (H1 2023: loss GBP1.9 million).
Statutory loss after tax improved by 18% to a loss of GBP1.5 m illion with the adjusted loss after tax of GBP1.6 million improving by 11% (H1 2023: loss GBP1.8 million).
The loss per share and adjusted loss per share were 1.01 pence and 1.06 pence respectively (H1 2023: loss per share and adjusted loss per share of 1.23 pence and 1.19 pence respectively) and reflected the movements in adjusted and statutory loss after tax.
Cash flow
The decrease in cash and cash equivalents of GBP0.4 million to GBP2.4 million at 30 September 2023 (30 September 2022: GBP1.1 million, 31 March 2023: GBP2.8 million) was driven by an operating cash outflow before working capital of GBP1.4 million partly offset by a net working capital inflow of GBP1.0 million and an R&D tax credit received of GBP0.4m together with investing outflows and financing outflows of GBP0.2 million each.
Movements in working capital in the period were:
-- Trade and other receivables decreased by GBP1.5 million, principally driven by cash received from CBP of GBP2.7 million. -- Increased inventory to support order backlog to be delivered in the second half of the year resulted in a GBP0.3 million outflow. -- A decrease in trade and other payables resulted in an outflow of GBP0.2 million. Trade creditors decreased due to the timing of stock purchases.
On 26 October 2023, the Group completed a placing of 13,617,021 new ordinary shares of 23.5 pence per share raising GBP3.2 million of gross proceeds. The net proceeds of the placing will be used for continued investment in the Group's sales and marketing capability and delivering key new software functionality. It will also provide the Group with additional working capital flexibility and strengthen the Group's balance sheet.
Other
A limited programme of share purchases by the Thruvision plc EBT commenced on 1 April 2023 with the purpose of partly satisfying future employee exercises of share options. During the period 455,029 shares in the Group were purchased by the EBT for total consideration of GBP119,000.
Consolidated income statement
6 months 6 months Year ended ended ended 30 September 30 September 31 March 2022 2022(1) 2023 Unaudited Unaudited Audited Notes GBP'000 GBP'000 GBP'000 ------------------------- ------ ------------- ------------- ---------------- Revenue 2 3,545 2,771 12,420 Cost of sales (1,924) (1,667) (6,583) ------------------------- ------ ------------- ------------- ---------------- Gross profit 1,621 1,104 5,837 Administrative expenses (3,177) (2,991) (6,827) Operating loss (1,556) (1,887) (990) Financial income 25 11 26 Finance costs (37) (16) (15) ------------------------- ------ ------------- ------------- ---------------- Loss before tax (1,568) (1,892) (979) Taxation credit 86 89 174 ------------------------- ------ ------------- ------------- ---------------- Loss for the period (1,482) (1,803) (805) ------------------------- ------ ------------- ------------- ---------------- Loss per share ------------------------- ------ ------------- ------------- ---------------- Loss per share - basic and diluted 3 (1.01p) (1.23p) (0.55p) ------------------------- ------ ------------- ------------- ----------------
All operations are continuing.
(1) As restated see note 5 to the interim financial statements.
Consolidated statement of comprehensive income
6 months 6 months Year ended ended ended 30 September 30 September 31 March 2023 2023 2022 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 ----------------------------------- ------------- ------------- -------------- Loss for the period attributable to owners of the parent (1,482) (1,803) (805) Other comprehensive loss - items that may be subsequently reclassified to profit or loss: ------------------------------------ ------------- ------------- -------------- Exchange differences on retranslation of foreign operations (24) (45) (50) Total comprehensive loss attributable to owners of the parent (1,506) (1,848) (855) ------------------------------------ ------------- ------------- --------------
Consolidated statement of financial position
at 30 September 2023
30 September 30 September 31 March 2023 2022 2023 Unaudited Unaudited Audited Note GBP'000 GBP'000 GBP'000 ------------------------------- ----- --------------- ------------- ------------ Assets Non-current assets Property, plant and equipment 1,210 962 1,173 Other intangible assets 116 140 109 ------------------------------- ----- --------------- ------------- ------------ 1,326 1,102 1,282 Current assets Inventories 3,895 4,772 3,639 Trade and other receivables 2,851 3,813 4,342 Current tax receivable 81 302 375 Cash and cash equivalents 2,372 1,091 2,810 ------------------------------- ----- --------------- ------------- ------------ 9,199 9,978 11,166 ------------------------------- ----- --------------- ------------- ------------ Total assets 10,525 11,080 12,448 Current liabilities Trade and other payables (2,493) (2,399) (2,690) Lease liabilities (132) (158) (121) Provisions (102) (206) (107) ------------------------------- ----- --------------- ------------- ------------ (2,727) (2,763) (2,918) ------------------------------- ----- --------------- ------------- ------------ Net current assets 6,472 7,215 8,248 ------------------------------- ----- --------------- ------------- ------------ Non-current liabilities Trade and other payables (54) (69) (72) Lease liabilities (557) (449) (604) Provisions (38) (38) (38) ------------------------------- ----- --------------- ------------- ------------ (649) (556) (714) ------------------------------- ----- --------------- ------------- ------------ Total liabilities ( 3,376) (3,319) (3,632) ------------------------------- ----- --------------- ------------- ------------ Net assets 7,149 7,761 8,816 ------------------------------- ----- --------------- ------------- ------------ Equity Share capital 4 1,474 1,472 1,472 Share premium 352 308 325 Capital redemption reserve 163 163 163 Translation reserve (13) 16 11 Retained earnings 5,173 5,802 6,845 ------------------------------- ----- --------------- ------------- ------------ Total equity attributable to owners of the Company 7,149 7,761 8,816 -------------------------------------- --------------- ------------- ------------
Consolidated statement of changes in equity (unaudited)
Capital Share Share redemption Translation Retained Total capital premium reserve reserve earnings equity GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 ------------------------ --------- --------- ------------ --------------- ------------ ----------------- At 31 March 2022 1,466 201 163 61 7,554 9,445 ------------------------ --------- --------- ------------ --------------- ------------ ----------------- Shares issued 6 107 - - - 113 Share based payment charge - - - - 51 51 ------------------------ --------- --------- ------------ --------------- ------------ ----------------- Transactions with shareholders 6 107 - - 51 164 ------------------------ --------- --------- ------------ --------------- ------------ ----------------- Loss for the period - - - - (1,803) (1,803) Other comprehensive loss - - - (45) - (45) ------------------------ --------- --------- ------------ --------------- ------------ ----------------- Total comprehensive loss - - - (45) (1,803) (1,848) ------------------------ --------- --------- ------------ --------------- ------------ ----------------- At 30 September 2022 1,472 308 163 16 5,802 7,761 ------------------------ --------- --------- ------------ --------------- ------------ ----------------- Shares issued - 17 - - - 17 Share based payment charge - - - - 45 45 ------------------------ --------- --------- ------------ --------------- ------------ ----------------- Transactions with shareholders - 17 - - 45 62 ------------------------ --------- --------- ------------ --------------- ------------ ----------------- Profit for the period - - - - 998 998 Other comprehensive expense - - - (5) - (5) ------------------------ --------- --------- ------------ --------------- ------------ ----------------- Total comprehensive (loss)/income - - - (5) 998 993 ------------------------ --------- --------- ------------ --------------- ------------ ----------------- At 31 March 2023 1,472 325 163 11 6,845 8,816 ------------------------ --------- --------- ------------ --------------- ------------ ----------------- Shares issued 2 27 - - - 29 Purchase of own shares - - - - (119) (119) Share based payment credit - - - - (71) (71) ------------------------ --------- --------- ------------ --------------- ------------ ----------------- Transactions with shareholders 2 27 - - (190) (161) ------------------------ --------- --------- ------------ --------------- ------------ ----------------- Loss for the period - - - - (1,482) (1,482) Other comprehensive loss - - - (24) - (24) ------------------------ --------- --------- ------------ --------------- ------------ ----------------- Total comprehensive loss - - - (24) (1,482) (1,506) ------------------------ --------- --------- ------------ --------------- ------------ ----------------- At 30 September 2023 1,474 352 163 (13) 5,173 7,149 ------------------------ --------- --------- ------------ --------------- ------------ -----------------
Consolidated statement of cash flows
6 months 6 months Year ended ended ended 30 September 30 September 31 March 2023 2022 2023 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 ----------------------------------------- ------------- ------------- ----------- Operating activities Loss after tax (1,482) (1,803) (805) Adjustments for: Taxation credit (86) (89) (174) Financial income (25) (10) (26) Finance costs 37 16 15 Depreciation of property, plant
and equipment 227 258 619 Profit on disposal of property, plant & equipment - (10) (10) Amortisation of intangible assets 9 10 20 Impairment of intangible assets - - 36 Share-based payment (credit) / charge (72) 51 96 ---------------------------------------- ------------- ------------- ----------- Operating cash outflow before changes in working capital and provisions (1,392) (1,577) (229) Decrease / (increase) in trade and other receivables 1,491 (1,811) (2,360) Increase in inventories (256) (904) (183) (Decrease) / increase in trade and other payables (191) 26 321 (Decrease) / increase in provisions (5) 28 (71) Cash utilised in operations (353) (4,238) (2,522) Net income taxes received 380 - - ----------------------------------------- ------------- ------------- ----------- Net cash inflow / (outflow) from operating activities 27 (4,238) (2,522) ----------------------------------------- ------------- ------------- ----------- Investing activities Purchase of property, plant & equipment (241) (26) (37) Purchase of intangible assets (18) (70) (86) Proceeds from disposal of property, plant and equipment - 11 11 Interest received 25 10 26 Net cash outflow from investing activities (234) (75) (86) ----------------------------------------- ------------- ------------- ----------- Financing activities Proceeds from issues of shares 29 93 130 Purchase of own shares (119) - - Payments on principal portion of lease liabilities (93) (81) (180) Other finance costs (12) - - Interest paid on lease liabilities (23) (4) (15) Net cash outflow from financing activities (218) (89) (65) ----------------------------------------- ------------- ------------- ----------- Net decrease in cash and cash equivalents (425) (4,305) (2,673) ----------------------------------------- ------------- ------------- ----------- Cash and cash equivalents at beginning of the period 2,810 5,441 5,441 Effect of foreign exchange rate changes (13) (45) 42 ----------------------------------------- ------------- ------------- ----------- Cash and cash equivalents at end of the period 2,372 1,091 2,810 ----------------------------------------- ------------- ------------- -----------
Notes to the financial statements
1. Accounting policies
Basis of preparation
The consolidated interim financial statements include those of Thruvision Group plc and all of its subsidiary undertakings (together "the Group") drawn up at 30 September 2023 and have been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting" ("IAS 34") as adopted for use in the European Union ("EU"). The consolidated interim financial statements have been prepared using accounting policies and methods of computation consistent with those applied in the consolidated financial statements for the period ended 31 March 2023.
The Group is a public limited company incorporated and domiciled in England & Wales and whose shares are quoted on AIM, a market operated by The London Stock Exchange. All values are rounded to GBP'000 except where otherwise stated.
Accounting policies
The annual consolidated financial statements of the Group are prepared on the basis of International Financial Reporting Standards ("IFRS"). The consolidated interim financial statements are presented on a condensed basis as permitted by IAS 34 and therefore do not include all the disclosures that would otherwise be required in a full set of financial statements and should be read in conjunction with the most recent Annual Report and Accounts which were approved by the Board of Directors on 20 July 2023 and have been filed with Companies House. The condensed interim financial statements do not constitute statutory accounts as defined in Section 435 of the Companies Act 2006 and are unaudited for all periods presented. The financial information for the 12-month period ended 31 March 2023 is extracted from the financial statements for that period. The auditors' report on those financial statements was unqualified and did not contain an emphasis of matter reference and did not contain a statement under section 498(2) or (3) of the Companies Act 2006 .
The half year results for the current period to 30 September 2023 have not been audited or reviewed by auditors pursuant to the Auditing Practices Board guidance of Review of Interim Financial Information.
Adoption of new and revised International Financial Reporting Standards
The Group's accounting policies have been prepared in accordance with IFRS effective as at its reporting date of
30 September 2023.
Standards Issued
The standards and interpretations that are issued up to the date of issuance of the Group's interim financial statements are disclosed below. The Group has adopted these standards, if applicable, when these became effective. Further details are disclosed in the 31 March 2023 Annual Report available on the Group's website: www.thruvision.com.
Accounting developments - new standards, amendments and interpretations issued and adopted
There were no new accounting standards or amendments requiring disclosure in the period.
Going concern
The Group's loss before tax from continuing operations for the period was GBP1.6 million (H1 2023: GBP1.9 million; FY 2023: GBP1.0 million). As at 30 September 2023 the Group had net current assets of GBP6.5 million (30 September 2022: GBP7.2 million; 31 March 2023: GBP8.2 million) and cash and cash equivalents of GBP2.4 million (30 September 2022: GBP1.1 million; 31 March 2023: GBP2.8 million).
The Board has reviewed cash flow forecasts for the period up to and including 31 December 2024. These forecasts and projections take into account reasonably possible changes in trading performance and show that the Group will be able to react as required in order to operate within the level of current funding resources, and no need for the Group to take on any debt. In order to stress-test the adoption of the going concern basis, a cashflow forecast was also produced which looked at the highly unlikely scenario in which no further sales took place, other than delivery of existing backlog, and certain discretionary areas of cash expenditure were reduced. This showed that even under this extreme condition, the Group would still have positive cash reserves as at 31 December 2024 with no need to take on external debt. The Directors therefore believe there is sufficient cash available to the Group to manage through these requirements. As with all businesses, there are particular times of the year where the Group's working capital requirements are at their peak. However, the Group is well placed to manage business risk effectively and the Board reviews the Group's performance against budgets and forecasts on a regular basis to ensure action is taken where needed.
The Directors therefore are satisfied that the Group has adequate resources to continue operating for a period of at least 12 months from the approval of these accounts. For this reason, they have adopted the going concern basis in preparing the financial statements.
Notes to the financial statements (continued)
2. Segmental information
The Directors do not split the business into segments in order to internally analyse the business performance. The Directors believe that allocating overheads by department provides a suitable level of business insight. The overhead department cost centres comprise of engineering, sales and marketing, property and administration, management and PLC costs, with the split of costs as shown in the Financial Review on page 6.
Analysis of revenue by customer
There have been two (H1 2023: two; FY 2023: one) individually material customer(s) (each comprising in excess of 10% of revenue) during the period. These customers individually represented GBP1,885k and GBP440k of revenue (H1 2023: GBP1,335k and GBP415k, FY 2023: GBP8,268k).
The Group's revenue by market sector, geographical location and type is detailed below:
6 months ended 6 months ended Year ended 30 September 30 September 31 March 2023 2022 2023 Revenue by market sector GBP'000 GBP'000 GBP'000 -------------------------- -------------- -------------- ---------- Retail Distribution 799 1,025 2,429 Customs 1,978 1,699 9,165 Aviation 6 12 246 Entrance Security 762 35 580 Total 3,545 2,771 12,420 -------------------------- -------------- -------------- ---------- 6 months 6 months Year ended ended 30 ended 30 31 March September September 2023 2023 2022 Unaudited Unaudited Audited Revenue by geographical location GBP'000 GBP'000 GBP'000 ---------------------------------- ----------- ----------- -------------- UK and Europe 974 990 2,249 Americas 235 1,759 9,223 Rest of World 2,336 22 948 3,545 2,771 12,420 ---------------------------------- ----------- ----------- -------------- 6 months ended 6 months ended Year ended 30 September 30 September 31 March 2023 2022 2023 Revenue by type GBP'000 GBP'000 GBP'000 ------------------------- -------------- -------------- ---------- Product 3,404 2,364 11,782 Support and Development 141 407 638 ------------------------- -------------- -------------- ---------- Total 3,545 2,771 12,420 ------------------------- -------------- -------------- ----------
The Group's non-current assets by geography are detailed below:
30 September 30 September 31 March 2023 2022 2023 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 -------------------------- -------------- -------------- ------------- UK 1,110 1,037 1,027 United States of America 216 65 255 1,326 1,102 1,282 -------------------------- -------------- -------------- -------------
Notes to the financial statements (continued)
2. Segmental information (continued)
The Group's revenue by type is detailed below:
6 months ended 6 months Year ended 30 September ended 30 31 March 2023 September 2023 2022 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 ---------------------------------- --------------- ----------- -------------- Revenue recognised at point in time 3,507 2,398 11,888 Revenue recognised over time - extended warranty and support revenue 38 373 532 3,545 2,771 12,420 ---------------------------------- --------------- ----------- --------------
3. Loss per share
6 months 6 months Year ended ended ended 30 September 30 September 31 March 2023 2022 2023 Unaudited Unaudited Audited Loss after tax (GBP'000) (1,482) (1,803) (805) ----------------------------------- ------------- ------------- ---------------- Weighted average number of shares 147,292,757 147,097,721 147,138,774 ----------------------------------- ------------- ------------- ---------------- Basic and diluted loss per share (pence) (1.01p) (1.23p) (0.55p) ----------------------------------- ------------- ------------- ----------------
The inclusion of potential Ordinary Shares arising from LTIPs and EMI Options would be anti-dilutive. Basic and diluted loss per share has therefore been calculated using the same weighted number of shares for each period.
4. Share capital
As 30 September 2023, there were 147,368,117 Ordinary Shares in issue (30 September 2022: 147,165,718;
31 March 2023: 147,247,239). The Thruvision Group Plc Employee Benefit Trust held 455,029 shares in the Company (30 September 2022: nil; 31 March 2023: nil).
On 26 October 2023, the Company issued 13,617,021 new Ordinary Shares of 1 penny each at a premium of 22.5 pence each as part of the placing for which gross proceeds of GBP3.2 million was received. Following the placing, 161,015,138 Ordinary Shares were in issue.
5. Restatement
In the audited results for the year ended 31 March 2023, gross margin was restated to correctly classify certain fixed costs and variable production overheads including production staff costs and related overheads to cost of sales from administrative expenses. The unaudited results for the six months ended 30 September 2022 have been restated accordingly to ensure comparability, with total costs reclassified from administrative expenses to cost of sales of GBP0.3 million. There is no impact on operating profit, basic and diluted loss per share or the Statement of Financial Position.
6. Post balance sheet events
On 26 October 2023, the Group concluded a placing of 23.5 pence per share raising GBP3.2 million of gross proceeds and issuing 13,617,021 new Ordinary Shares, including a significant strategic investment from Pentland Capital.
APPIX - ALTERNATIVE PERFORMANCE MEASURES ('APMs')
Policy
Thruvision uses adjusted figures as key performance measures in addition to those reported under IFRS, as management believe these measures enable management and stakeholders to assess the underlying trading performance of the businesses as they exclude certain items that are considered to be significant in nature and/or quantum.
The APMs are consistent with how the businesses' performance is planned and reported within the internal management reporting to the Board. Some of these measures are used for the purpose of setting remuneration targets.
The key APMs that the Group uses include adjusted measures for the income statement together with adjusted cash flow measures. Explanations of how they are calculated and how they are reconciled to an IFRS statutory measure are set out below.
Adjusted measures
The Group's policy is to exclude items that are considered to be significant in nature and/or quantum, where the item is volatile in nature and cannot be directly linked to underlying trading, and where treatment as an adjusted item provides stakeholders with additional useful information to better assess the period-on-period trading performance of the Group.
The Group excludes certain items, which management have defined as:
- Share based payments charge or credit - Impairments of intangible assets
Gross profit, excluding production overheads is used to enable a like-for-like comparison of underlying sales profitability. Production overheads are excluded due to changes in product mix and investments in the production team which have improved capacity and therefore changes the labour and overhead absorption rates. This is represented by adjusted gross profit.
Based on the above policy, the adjusted performance measures are derived from the statutory figures as follows:
a) Adjusted gross profit 6 months 6 months Year ended ended ended 30 September 30 September 31 March 2023 2022 2023 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 ----------------------- ------------- ------------- ------------ Gross profit 1,621 1,104 5,837 ----------------------- ------------- ------------- ------------ Add back: Production overheads 291 252 564 ----------------------- ------------- ------------- ------------ Adjusted gross profit 1,912 1,356 6,401 ----------------------- ------------- ------------- ------------ b) Adjusted EBITDA 6 months 6 months Year ended ended ended 30 September 30 September 31 March
2023 2022 2023 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 --------------------------------- ------------- ------------- ------------ Statutory operating loss (1,556) (1,887) (990) --------------------------------- ------------- ------------- ------------ Add back: Depreciation and amortisation 236 268 639 Impairment of intangible assets - - 36 Share-based payment (credit) / charge (72) 51 96 --------------------------------- ------------- ------------- ------------ Adjusted EBITDA (1,392) (1,568) (219) --------------------------------- ------------- ------------- ------------ c) Adjusted loss before tax 6 months 6 months Year ended ended ended 30 September 30 September 31 March 2023 2022 2023 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 --------------------------------- ------------- ------------- ------------ Statutory loss before tax (1,568) (1,892) (979) --------------------------------- ------------- ------------- ------------ Add back: Impairment of intangible assets - - 36 Share-based payment (credit) / charge (72) 51 96 --------------------------------- ------------- ------------- ------------ Adjusted loss before tax (1,640) (1,841) (847) --------------------------------- ------------- ------------- ------------ d) Adjusted loss per share 6 months 6 months Year ended ended ended 30 September 30 September 31 March 2023 2022 2023 Unaudited Unaudited Audited GBP'000 GBP'000 GBP'000 ----------------------------------- ------------- ------------- ------------ Statutory loss after tax (1,482) (1,803) (805) ----------------------------------- ------------- ------------- ------------ Add back: Impairment of intangible assets - - 36 Share-based payment (credit) / charge (72) 51 96 ----------------------------------- ------------- ------------- ------------ Adjusted loss after tax (1,554) (1,752) (673) ----------------------------------- ------------- ------------- ------------ Weighted average number of shares 147,292,757 147,097,721 147,138,774 ----------------------------------- ------------- ------------- ------------ Statutory loss per share (pence) (1.01) (1.23) (0.55) ----------------------------------- ------------- ------------- ------------ Adjusted loss per share (pence) (1.06) (1.19) (0.46) ----------------------------------- ------------- ------------- ------------
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 DDLFFXFLLFBX
(END) Dow Jones Newswires
November 20, 2023 02:00 ET (07:00 GMT)
1 Year Thruvision Chart |
1 Month Thruvision Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions