23 May 2022

Pelatro Plc

 

("Pelatro" or the "Group")

 

Final Results

 

 

Pelatro Plc (AIM: PTRO), the precision marketing software specialist, is pleased to announce today its audited results for the year ended 31 December 2021.

 

Financial highlights

 

·              Significant increase in revenue to $7.3m (2020: $4.0m)

·              Recurring revenue of $4.8m (2020: $2.9m)

·              Adjusted EBITDA^* of $2.8m (2020: $0.4m)

·              Adjusted loss per share of (0.4)¢ (2020: (5.5)¢)

•              Equity placing to raise $4.3m to invest in our business and repay debt

·              Gross cash as at 31 December 2021 $3.3m (2020: $1.8m)

•              Trade receivables of $5.0m (2020: $3.5m); c. $1.9m received from debtors since year end

 

Operational highlights

 

•              Three new customers bringing total to 23

•              Now processing data of over one billion subscribers every day

•              With recent contracts a dominant presence in Asia and increasingly in Africa

 

Outlook

 

·          Substantial order book and good visibility over revenues for the coming year - ARR now c.80% of expected FY22 revenue

•              New business pipeline^# of c. $17m

•              Further drive into fast growing mobile advertising space

 

Richard Day, non-executive Chairman of Pelatro commented:

 

"We are delighted to be able to show in these results figures which are in line with expectations; with solid growth in the revenue line of over 80% to $7.3m from $4.0m the previous year, with the majority being of a recurring revenue nature. The Group continues to trade in-line with expectations and our recurring revenue base gives us good visibility over the coming year and, together with our new business pipeline, gives us every confidence for the rest of 2022 and beyond"

 

 

Presentation

 

A copy of the results presentation to be provided to investors and analysts will be available on Pelatro's website in due course (www.pelatro.com).

 

For further information contact:

 

Pelatro Plc
Subash Menon, Managing Director	c/o finnCap
Nic Hellyer, Chief Financial Officer
finnCap Limited (Nominated Adviser and broker)	+44 (0)20 7220 0500
Carl Holmes/Kate Bannatyne/Milesh Hindocha (Corporate Finance)

 

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

 

** ARR is calculated by reference to the full annualised value of a contract; the total ARR thus calculated may not all accrue in the 12 months following due to (for example) implementation periods and other timing differences between signing a contract and the "Go Live" or similar date

 

# Pipeline value is defined as expected license revenue or 3 x ARR, depending on the nature of the contract

 

This announcement is released by Pelatro Plc and, prior to publication, the information contained herein was deemed to constitute inside information under the Market Abuse Regulations (EU) No. 596/2014. Such information is disclosed in accordance with the Company's obligations under Article 17 of MAR. The person who arranged for the release of this announcement on behalf of Pelatro Plc was Nic Hellyer, CFO.

 

 

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

 

 

CHAIRMAN'S STATEMENT

 

Overview

 

The markets we serve have become increasingly sophisticated but the underlying themes of providing good service with outstanding products and generating real value for our customers continues to serve us and our customer base well. For us this has resulted in a year of consolidating our position as a recurring revenues service provider as well as winning new customers, ensuring we are able to report healthy growth in our business. We will still provide our software and services through a licence model if that is preferred by a customer, but this is no longer the norm.

 

Operations

 

We started the year in January 2021 with our mViva platform being chosen by an Asian telco for campaign management operations. This Asian telco is part of a much larger international telco group and we have found this is an ideal way to penetrate these larger diverse entities. We followed this with a Framework Agreement later in the year with the parent company, so that its operating companies in various jurisdictions can be serviced by Pelatro under one agreement. Including these and despite the Covid situation, Pelatro won three new telco customers in 2021, taking us to 23 customers in various countries around the world. We have also been extending the breadth and quality of our products and services we provide to our telco customers. Part of our growth effort has been directed towards the non-telco space, where non-telco brand campaigns and adverts can be sent to consumers via their mobile phones. We have recruited a senior manager for this area and are building the team but are proceeding cautiously in terms of new contracts to ensure that they are on appropriate terms.

 

India has taken longer to emerge from the various Covid disruptions than the UK and currently continues to remain cautious with regards to Covid. With our main operations based in Bangalore, we have successfully managed home working by our staff which has meant there has not been a significant effect on our day-to day operations and we have been able to continue to provide excellent levels of service to our customers. This included our five year Managed Services contract which went live with our largest customer in India. The implementation was smooth and successful, with over 400 million subscribers being transferred over to the new system.

 

The numbers of staff attending our offices safely for work has been at the 30% level for some time now and we expect this gradually to grow over the coming months. Our executive team have also been prevented from travelling overseas, but air travel has also opened up and they are now able to meet our international customer base and pursue new opportunities in person.

 

Non telco operations

 

Pelatro has been working on entering non telco sectors for the past nine months. We have initially focused on banks and fintech companies as sectors, with over 50 potential customers being targeted in India, as a geographic starting point. Through these extensive interactions over these months, it has become amply clear that these enterprises are keen on customer journey mapping, customer journey analytics and customer journey orchestration. This is a very new product set to these businesses but a number have expressed interest in exploring an engagement. Given our extensive experience in the telco sector our product mViva has very strong capabilities with respect to customer journey orchestration and on that basis we are confident of winning our first customer in this space during 2022.

 

We expect to undertake further recruitment to service this space when our initial customer engagements begin to mature and the business model develops further. The extent of this recruitment will depend on the potential geographic and sector breadth of the roll out.

 

 

Other developments

 

In June, we took the opportunity to raise approximately £3.3m through an equity placing of new shares with new and existing shareholders to help grow our sales and marketing as well as to repay debt and strengthen the Group's balance sheet. In December, our CFO Nic Hellyer, who had been with Pelatro for over four years on a part-time basis, moved to a full-time role with us.

 

We continue to closely monitor the situation in Ukraine, the response of international governments and any potential impact on the Group. Pelatro has a small development and support team in Russia, representing around 13% of the Group's cash cost base. This team can and does operate remotely with no requirement for travel, and is currently fully operational. The Group has no revenue from Russia or any other related sanctioned jurisdiction.

 

Outlook

 

Against this backdrop, we are delighted to be able to show in these results figures which are in line with expectations; with solid growth in the revenue line of over 80% to $7.3m from $4.0m the previous year, with the majority being of a recurring revenue nature. The Group also continues to trade in-line with expectations and our recurring revenue base gives us good visibility over the coming year and, together with our new business pipeline, gives us every confidence for the rest of 2022 and beyond.

 

 

 

Richard Day

Chairman

 

 

 

 

 

MANAGING DIRECTOR'S STATEMENT

 

Change, as they say, is the only constant phenomenon. Does this mean change can only be involuntary and accidental? Absolutely not. The type of change that people and organisations benefit from are those that are brought about by design. Those that involve strategizing and meticulous execution - particularly when it comes to a company. Your company went through a well-orchestrated change during 2019 and 2020 and the results came in during 2021.

 

The Orchestrated Change

 

When we started the process in 2019, we had clearly articulated both the goal and the path to it. The objective was to shift our revenue model from a one-time license fee model to recurring and/or repeating revenue, with an emphasis on recurring. Given that recurring revenue is now a sustainable 70% or so of revenue we believe we have achieved that goal. Furthermore, from a low of 20% at the time of the IPO in 2017, recurring and repeating business has gone up to around 90%, thereby significantly increasing the predictability and stability of the revenue stream, with the visibility quite high at the start of the year itself, with a key element of this being the quantum of annual recurring revenue ("ARR") as we win new contracts. We believe that we have now reached a stable level with respect to the share of these revenue streams and that augurs well for the business going forward.

 

Growing Customer Base 

 

Over the years, we have been successful in adding customers. While this was impacted by Covid-19, we added three new customers in 2021 taking our tally to 23 customers in 20 countries. Some of the key statistics are given below.

 

•              Processing data of over one billion subscribers every day

•              Processing over 60 billion transactions per day, in real time, in one customer site alone

•              Executing over 15,000 campaigns every day

•              Present in 20 countries

 

Scale is a critical element for any enterprise software and for us that has now been well established. From a geographical perspective, we now have a dominant presence in Asia and Africa. Leveraging these achievements, we are now spreading into Europe.

 

Going Above and Beyond

 

Our customers are operating in a highly competitive market wherein they are being squeezed by two strong forces - reducing revenue per customer and increasing churn. Between these two debilitating factors, the telcos are finding it extremely difficult to increase revenue and margin. In this tough situation, vendors need to shoulder more responsibilities and become true partners. Pelatro is committed to this vision. Over the past few years, we have built extensive capabilities in the following areas.

 

•              Development of campaign strategy

•              Campaign consultancy

•              Campaign execution

•              Platform operation

•              Reporting

 

With these enhanced capabilities, we help our customers to effectively use our solution to increase revenue and reduce churn. In many instances some of Pelatro's revenue is linked to performance thereby ensuring that interests are aligned with our customers. Thus, we share the risk perceived by our customers while helping them to meet their objectives to the fullest extent possible.

 

We have been on this specific journey for the past three years and are convinced that this is the way forward. Our customers are increasingly seeing us as partners and not mere vendors. They are highly appreciative of the value added by Pelatro with respect to both the software solution and the overall operations. Such engagements are flourishing on the basis of actual incremental revenue generated by Pelatro over the past few years and a comparison of the same with the status within the telcos prior to that period, and the uplift brought about by Pelatro is compelling enough for the telcos to increasingly rely on us for operations in the form of managed services.

 

As noted in the Chairman's statement we have also begun the journey similarly to add value to non-telco customers. We will invest in this side of the business prudently and, while it is early days, we expect these engagements to further increase our revenue in the years to come.

 

I take this opportunity to thank all of you and look forward to your continued support in our effort to go above and beyond.

 

 

 

Subash Menon

Managing Director, CEO and Co-Founder

 

 

FINANCIAL REVIEW

 

Income Statement

 

Revenue

 

Out of our total revenue of $7.27m, approximately $4.79m (66%) arose from recurring revenue (2020: $2.85m), comprising some $3.46m from managed service and gain share contracts and the balance from post-contract support. A further $1.96m came from change requests (2020: $0.43m) which are not contractually "recurring" but tend to provide "repeat" income as our customers' usage of the product evolves. Accordingly, over 90% of revenue was "repeating" in nature, compared to just over 80% in 2020.

 

This increase reflects the push by the Group over the last few years into recurring revenue contracts which initially resulted in a fall in revenue as "one off" license revenues were replaced by sustainable longer-term contracts. Whilst the coronavirus pandemic over the last two years had a relatively limited impact on high-level decision making at our customers, it did nonetheless slow our marketing efforts which, for high-level enterprise software such as ours, do require some level of face-to-face contact. Despite this, three new customers were added during the year; this, together with the number of recurring revenue customers, further reduced customer concentration with now only two customers accounting for more than 10% of revenue.

 

Cost of sales and overheads

 

Cost of sales increased by 29% to $2.2m (2020: $1.7m). These costs comprise principally (i) the direct salary costs of providing software support and maintenance, professional services and consultancy; (ii) expensed customer implementation; (iii) third-party software maintenance and licensing costs; and (iv) sales commissions. The increase in 2021 results almost entirely from the full year effect of staff taken on to service managed service and similar contracts commenced in 2020.

 

Pre-exceptional overheads (excluding depreciation and amortisation) increased to $2.3m (2020: $1.9m), reflecting the increase in business activity and hence people costs, plus additional efforts in sales and marketing, notably establishing the Group presence via social media. Travel costs were maintained at a relatively low level given the ongoing restrictions on international travel and the Group's success in enabling support and implementation functions remotely.

 

Profitability

 

Adjusted EBITDA (earnings before interest, tax, depreciation, amortisation and exceptional items, as adjusted for the effect of certain non-recurring or exceptional items) rose strongly by over 6x in the year to $2.81m (2020: $0.44m). After taking into account net finance costs and depreciation and amortisation (including c. $0.7m of acquisition-related amortisation) loss before tax was $(0.67)m (2020: loss of $(2.22)m before exceptional items).

 

Adjusted loss per share was (0.4)¢ (2020: loss of (5.5)¢), and reported loss per share was (2.1)¢ (2020: loss (7.2)¢).

 

 

 

Statement of Financial Position

 

Intangible assets

 

Capitalised development costs and patents

 

Capitalised development costs reduced slightly to $2.6m (2020: $2.9m) reflecting a reduction in direct costs attributable to software development, particularly in Nizhny Novgorod. Amounts capitalised during the year included investments in the mViva Contextual Marketing Platform ("CMP") which was developed from v.6.1 to v.6.2, the Unified Communication management ("UCM")/Link product from 12.1 to 13.0 and various new modules which add to and enhance the core product suite. The carrying value of these software assets together with the carrying value of software assets capitalised in previous periods was reviewed for impairment at the balance sheet date and no impairment was required.

 

The Group continues to protect its IP by registering patents when relevant and spent a further $30,000 on patent development over the year. Net of amortisation, the net book value of intangible assets relating to development costs and patents in the statement of financial position is approximately $6.4m (2020: $5.9m).

 

Property, plant and equipment

 

Expenditure on property, plant and equipment was minimal at $88,000, principally relating to IT and peripheral equipment. This compares to $0.9m in 2020 which related mainly to IT equipment placed on site at a customer's premises to implement the related managed services contract.

 

Depreciation in the year amounted to $0.30m (excluding amounts relating to Right-to-Use assets now recognised under IFRS 16, and gross of amounts capitalised as intangible assets) (2020: $0.20m). The increase largely reflects depreciation now charged on the customer site IT assets referred to above. The aggregate net book value of property, plant and equipment fell accordingly from $1.22m to $0.98m.

 

Right of use assets

 

The Group recognises certain long-term leases under IFRS 16 as "right of use" assets. The reduction in the overall value of the right of use assets from $0.31m in 2020 to $0.24m in 2021, is net of depreciation of $0.17m and capital additions of $0.1m. These additions do not reflect new leases but instead the capitalised value of expected extensions to current leases. The Group has had its office accommodation requirements (principally in Bangalore) under review for some time, however, the COVID pandemic and associated uncertainty had put such considerations on hold, but the Group now believes that a significant office consolidation will take place by the beginning of 2023.

 

 

Trade receivables and contract assets

 

Trade receivables

 

At 31 December 2021 total trade receivables (i.e. including long-term receivables) stood at $4.96m (2020: $3.48m). This figure includes:

 

(a) a receivable of $0.64m the payment of which is subject to a government approval process in the customer's jurisdiction. This process generally leads to a substantial delay to the payment of the amount outstanding - the payment concerned was originally expected in Q4 2021; however, the delay was compounded by a change to the underlying procedure which has resulted in the payment now being expected in Q2 2022. This delay is purely procedural and no impairment of the underlying amount is expected; and

 

(b) a receivable of $1.14m relating to an entire license contract which, though live with the customer, was pending final approval. This has taken place post the year end and $0.46m of the debt has been received to date.

 

In addition to the $0.46m, just under $1.5m has been received since the year end to date, i.e. a total of $1.9m.

 

Contract assets

 

Contract assets are recognised relating to support and maintenance revenue and license fees as invoices are raised in arrears of the revenue recognition relating to the services being provided. In addition, contract assets include contract fulfilment assets relating to sales commission provisions, the cost of which is amortised over the life of the corresponding contract.

 

Short-term contract assets deriving from revenue (i.e. those which are expected to reverse in less than one year) decreased to $0.38m (2020: $0.46m), arising from one license contract signed in the year which had invoicing terms which differed significantly from the underlying performance obligations. Long-term contract assets deriving from revenue (i.e. those which are expected to reverse after more than one year) decreased to $0.23m (2020: $0.31m), reflecting the invoicing profile of various products and services, principally on PCS.

 

Fulfilment assets included in contract assets total $0.18m (2020: $0.15m) in respect of short-term assets (representing costs directly relating to certain contracts to be recognised in profit and loss in the next 12 months); and $0.38m (2020: $0.44m) in respect of long-term assets (representing costs directly relating to certain contracts to be recognised in profit and loss after one year). These assets largely reflect sales commissions first contracted in 2020.

 

Trade and other payables, provisions and contract liabilities

 

Trade and other payables

 

At the year end, short-term trade payables stood at $0.15m (2020: $0.81m), the reduction being due entirely to an exceptional amount due in respect of sales commissions payable at the end of 2020 which were paid in 2021. Other short-term payables of $0.45m (2020: $0.28m), were due principally to amounts due in respect of staff bonuses and the balance for sundry creditors.

 

Provisions

 

Under the Indian Payment of Gratuity Act 1972, employees in the Group's Indian subsidiary with more than 5 years' service are eligible for the payment of a "gratuity" upon certain end of employment events - short-term provisions include amounts estimated in respect of such gratuity payments, as well as carried over leave payments and sundry expense provisions, in total $37,000 (2020: $79,000). The tax provision fell from $84,000 to $35,000 mainly due to an increase in the amount of tax deducted at source from our Indian subsidiary which reduced the year end tax creditor.

 

Long-term provisions of $0.20m (2020: $0.17m) relate solely to amounts estimated in respect of leave encashment and gratuity payments. Further details of such provisions are given in Note 26.

 

Contract liabilities

 

Contract liabilities represent customer payments received in advance of satisfying performance obligations, which are expected to be recognised as revenue in 2022 and beyond. Short-term contract liabilities remained broadly stable at $0.47m (2020: $0.50m) and long-term contract liabilities increased slightly to $0.28m (2020: $0.21m).

 

 

Statement of Cash Flows

 

Cash flow and financing

 

Cash generated by operations before tax payments amounted to $1.27m (2020: $2.60m), the reduction largely resulting from the effect of the trade receivables which were still outstanding at the year end referred to above and the payment of the commissions referred to in the note on creditors above.

 

In July we raised c. $4.3m net of expenses by way of an equity placing. This has supported the Group's expansion, both in terms of recruitment (in particular in sales), the repayment of debt (some $0.75m) and working capital generally.

 

The Group had closing gross cash of $3.3m (2020: $1.8m). Borrowings amounted to $0.75m (2020: $1.4m) excluding amounts relating to lease liabilities. These borrowings are to be repaid on an Equal Monthly Instalment ("EMI") basis over the next 2-5 years.

 

 

Summary

 

Our performance this year reflects the work done over the last few years in transitioning the Group towards long-term managed service contracts underpinned by a solid base of support revenue, and a more normal year of change request income. The Group starts the year with a material proportion of the expected total revenue for the year underpinned by recurring revenue already contracted and repeating revenue (i.e. change requests) under purchase orders. The Board therefore remains optimistic that the Group is on track to deliver a strong year of growth.

 

 

 

Nic Hellyer

Chief Financial Officer

 

 

Group Statement of Comprehensive Income                                                                             

For the year ended 31 December 2021

 

		2021	2020
	Note	$'000	$'000
		(audited)	(audited)
Revenue	5	7,266	4,020
Cost of sales and provision of services		(2,206)	(1,710)
		_______	_______
Gross profit		5,060	2,310
Administrative expenses	6	(4,831)	(3,647)
		_______	_______
Adjusted operating profit/(loss)		229	(1,337)
Exceptional items	7	-	149
Amortisation of acquisition-related intangibles	18	(686)	(686)
Share-based payments	11	(32)	(32)
		_______	_______
Operating (loss)		(489)	(1,906)
Finance income	12	44	64
Finance expense	13	(221)	(240)
		_______	_______
(Loss) before taxation		(666)	(2,082)
Income tax expense	14	(181)	(375)
		_______	_______
(LOSS) FOR THE YEAR ATTRIBUTABLE TO OWNERS OF THE PARENT		(847)	(2,457)
Other comprehensive income/(expense):
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations		(147)	31
Items that will not subsequently be reclassified to profit or loss:
Exchange differences on translation of equity balances		50	(55)
		_______	_______
Other comprehensive income, net of tax		(97)	(24)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR		(944)	(2,481)
Earnings per share
Attributable to the owners of the Pelatro Group (basic and diluted)	15	(2.1)¢	(7.2)¢

 

 

 

 

 

 

 

 

 

Group Statement of Financial Position                                                                                         

For the year ended 31 December 2021

 

		2021	2020
	Note	$'000	$'000
		(audited)	(audited)
Assets
Non-current assets
Intangible assets	18	11,453	11,649
Tangible assets	19	982	1,218
Right-of-use assets	20	240	308
Deferred tax assets		14	16
Contract assets	21	606	751
Trade receivables	21	163	149
		_______	_______
		13,458	14,091
Current assets
Contract assets	21	555	609
Trade receivables	21	4,793	3,335
Other assets	22	315	485
Cash and cash equivalents		3,331	1,805
		_______	_______
		8,994	6,234
TOTAL ASSETS		22,452	20,325
Liabilities
Non-current liabilities
Borrowings	23	608	1,196
Lease liabilities	24	80	172
Contract liabilities	25	278	207
Long-term provisions	26	202	173
		_______	_______
		1,168	1,748
Current liabilities
Short term borrowings	23	136	244
Lease liabilities	24	188	174
Trade and other payables	25	603	1,093
Contract liabilities	25	469	495
Provisions	26	72	163
		_______	_______
		1,468	2,169
TOTAL LIABILITIES		2,636	3,917
NET ASSETS		19,816	16,408
Issued share capital and reserves attributable to owners of the parent
Share capital	27	1,501	1,212
Share premium	27	18,046	14,045
Other reserves		(639)	(583)
Retained earnings		908	1,734
		_______	_______
TOTAL EQUITY		19,816	16,408

 

 

Group Statement of Cash Flows      

For the year ended 31 December 2021

		2021	2020
		$'000	$'000
		(audited)	(audited)
Cash flows from operating activities
Profit/(loss) for the year		(847)	(2,457)
Adjustments for:
Income tax expense recognised in profit or loss		181	375
Finance income		(44)	(20)
Finance costs		221	232
Depreciation of tangible non-current assets		467	366
Profit on disposal of fixed assets		(10)	(10)
Amortisation of intangible non-current assets		2,814	2,122
Fair value adjustment on contingent consideration		-	(149)
Share-based payments		32	32
Foreign exchange gains/(losses)		9	25
		_______	_______
Operating cash flows before movements in working capital		2,823	516
(Increase)/decrease in trade and other receivables		(1,271)	2,229
(Increase) in contract assets		206	(544)
Increase in trade and other payables		(532)	676
Increase/(decrease) in contract liabilities		45	(276)
		_______	_______
Cash generated from operating activities		1,271	2,601
Income tax paid		(258)	(339)
		_______	_______
Net cash generated from operating activities		1,013	2,262
Cash flows from investing activities
Development of intangible assets		(2,540)	(2,807)
Purchase of intangible assets		(42)	(9)
Acquisition of property, plant and equipment		(88)	(902)
Payment of earn out consideration relating to prior period acquisition		-	(851)
		_______	_______
Net cash used in investing activities		(2,670)	(4,569)
Cash flows from financing activities
Proceeds from issue of ordinary shares, net of issue costs		4,290	2,589
Proceeds from borrowings		70	1,753
Repayment of borrowings		(748)	(919)
Repayments of principal on lease liabilities		(173)	(171)
Interest received		44	20
Interest paid		(203)	(185)
Interest expense on lease liabilities		(25)	(16)
		_______	_______
Net cash generated by/(used in) financing activities		3,255	3,071
Net increase/(decrease) in cash and cash equivalents		1,598	764
Foreign exchange differences		(72)	(60)
Cash and cash equivalents at beginning of period		1,805	1,101
		_______	_______
Cash and cash equivalents at end of period		3,331	1,805

 

 

Group Statement of Changes in Equity                                                                                         

For the year ended 31 December 2021

 

	Share capital	Share premium	Exchange reserve	Merger reserve	Share-based payments reserve	Retained profits		Total
	$'000	$'000	$'000	$'000	$'000	$'000		$'000
Balance at 1 January 2020 as previously reported	1,065	11,603	(216)	(527)	100	4,177		16,202
(Loss) after taxation for the period	-	-	-	-	-	(2,457)		(2,457)
Share-based payments	-	-	-	-	98	-		98
Transfer on lapse of share options					(14)	14		-
Other comprehensive income:
Exchange differences	-	-	(24)	-	-	-		(24)
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
(Loss) after taxation for the period	-	-	-	-	-	(847)		(847)
Share-based payments	-	-	-	-	62	-		62
Transfer on lapse of share options					(21)	21		-
Other comprehensive income:
Exchange differences	-	-	(97)	-	-	-		(97)
Transactions with owners:
Shares issued by Pelatro Plc for cash	289	4,334	-	-	-	-		4,623
Issue costs	-	(333)	-	-	-	-		(333)
	_____	_____	_____	_____	_____	_____		_____
Balance at 31 December 2021	1,501	18,046	(337)	(527)	225	908		19,816

 

 

 

 

Notes                                                        

For the year ended 31 December 2021

 

As this summary announcement is extracted from the full financial statements, certain references may refer to notes which are not included herein, and the Notes section is not reproduced in full.

 

5          Revenue and segmental analysis

 

Revenue by type

 

At 31 December	2021	2020
	$'000	$'000
Recurring software sales and services	3,456	1,528
Maintenance and support	1,334	1,323
	_______	_______
Total recurring revenues	4,790	2,851
Change requests	1,958	426
	_______	_______
Total repeating revenues	6,748	3,277
Software - new licenses	498	698
Consulting	20	45
	_______	_______
	7,266	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:

 

At 31 December	2021	2020
	$'000	$'000
Caribbean	130	145
Central Asia	443	175
Eastern Europe	426	168
North Africa	104	64
South Asia	2,656	1,096
South East Asia	3,407	2,372
Sub-Saharan Africa	100	-
	_______	_______
	7,266	4,020

 

Customer concentration

 

The Group has two customers representing individually over 10% of revenue each and in aggregate approximately 38% of total revenue at $2.73m (2020: three customers, approximately 53% of total revenue at $2.14m). The two customers accounted for revenue of $1.63m and $1.10m (2020: $0.89m, $0.63m and $0.62m).

 

Remaining performance obligations

 

There are certain software support, professional service, maintenance and licences contracts that have been entered into for which both:

 

•              the original contract period was greater than 12 months; and

 

•              the Group's right to consideration does not correspond directly with performance.

 

The amount of revenue that will be recognised in future periods on these contracts when those remaining performance obligations will be satisfied is shown below.

	Year to 31 December
	2022	2023	2024-7
	$'000	$'000	$'000
Revenue expected to be recognised on software and service contracts	449	314	320

 

Comparative figures for the year ended 31 December 2020 were as follows:

	Year to 31 December
	2021	2022	2023-6
	$'000	$'000	$'000
Revenue expected to be recognised on software and service contracts	579	394	442

 

Costs of obtaining and fulfilling contracts of $0.12m have been capitalised in 2021 (net of amortisation against revenue recognised in respect of those contracts) (2020: $0.59m).

 

 

6          Operating expenses

 

Profit for the year has been arrived at after charging:

	2021	2020
	$'000	$'000
Amortisation of intangible non-current assets	2,814	2,122
Depreciation of tangible non-current assets	413	298
(Profit)/loss on disposal of Right to Use assets	(10)	(10)
Staff costs (see note 9)	2,865	1,787
Auditor's remuneration (see note 8)	47	41
Short-term lease expenses	35	23
Realised foreign exchange (gains)/losses	17	3

 

 

7          Non-GAAP profit measures and exceptional items

 

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

 

Year to 31 December	2021	2020
	$'000	$'000
Operating profit/(loss)	(489)	(1,906)
Adjusted for:
Amortisation and depreciation	3,227	2,420
	_______	_______
EBITDA	2,738	514
Revenue recognised as interest under IFRS 15	38	44
Expensed share-based payments	32	32
Exceptional items:
- gain on adjustment of contingent liability	-	(149)
	_______	_______
Adjusted EBITDA	2,808	441

 

The calculation of adjusted earnings per share is shown in Note 15.

 

 

8          Auditor's remuneration

 

Year to 31 December	2021	2020
	$'000	$'000
Audit of the financial statements of Pelatro Plc	47	41
Amounts receivable by auditor in respect of:
Tax compliance	1	4
	_______	_______
	48	45

 

 

9          Staff costs

 

Year to 31 December	2021	2020
	$'000	$'000
Wages and salaries	5,256	4,410
Social security contributions	80	83
Less: amounts capitalised as intangible assets	(2,471)	(2,706)
	_______	_______
	2,865	1,787

 

The average number of persons employed by the Company during the period was:

 

Year to 31 December	2021	2020
Sales	3	4
Software development	98	96
Support	113	48
Marketing	3	3
Administration	18	15
	_______	_______
	235	166

 

 

 

10        Directors' remuneration and transactions

 

The Directors' emoluments in the year ended 31 December 2021 were:

 

	Basic salary	Bonus	Benefits in kind	Share-based payments	Pension	Total	Total
	2021	2021	2021	2021	2021	2021	2020
	$'000	$'000	$'000	$'000	$'000	$'000	$'000
Executive Directors
N. Hellyer	87	21	10	1	3	122	137
S. Menon	201	57	21	-	-	279	220
S. Yezhuvath	201	57	14	-	-	272	207
Non-Executive Directors
R. Day	66	-	-	-	2	68	72
P. Verkade	41	-	-	-	-	41	39
	_______	______	______	______	_______	_______	_______
	596	135	45	1	5	782	675

 

The remuneration of the executive Directors is decided by the Remuneration Committee. Save as disclosed above no Director had a material interest in any contract of significance with the Group in either year.

 

 

11        Share-based payments

 

A charge of $32,000 (net of amounts capitalised of $30,000) (2020: $32,000) has been recognised during the year for share-based payments over the vesting period. This share-based payment expense comprises the charge in the current period relating to the expensing of the fair value of (a) 1,323,500 options granted under the Plan (net of lapsed or forfeited options) and (b) the 33,000 options (net of lapses) issued at the time of the Company' IPO.

 

Movements in the number of share options outstanding and their related weighted average exercise prices are as follows:

 

	No. of options		Weighted average exercise price
	2021	2020	2021	2020
Outstanding at the beginning of the year	1,505,500	1,631,500	72.7p	72.7p
Granted during the year	-	-	-	-
Forfeited/cancelled during the year	(149,000)	(126,000)	73.0p	73.0p
	_______	_______
Outstanding at the end of the year	1,356,500	1,505,500	72.7p	72.7p

 

Outstanding options are exercisable at prices between 62.5p and 73p and have a weighted average remaining contractual life of 6.8 years.

 

 

12        Finance income

 

	2021	2020
	$'000	$'000
Interest receivable on interest-bearing deposits	6	20
Notional interest accruing on contracts with a significant financing component	38	44
	_______	_______
Total finance income	44	64

 

 

13        Finance expense

 

	2021	2020
	$'000	$'000
Interest and finance charges paid or payable on borrowings	202	198
Interest on lease liabilities under IFRS 16	25	31
Less: amounts capitalised as intangible assets	(6)	(14)
Acquisition-related financing expense (unwinding of discount on financial liabilities)	-	25
	_______	_______
Total finance expense	221	240

 

An element of interest on lease liabilities is deemed to be directly attributable overheads for the purposes of capitalising relevant expenditure on developing intangible assets (see Note 18).

 

 

14        Taxation

 

Tax on profit on ordinary activities

 

Year to 31 December	2021	2020
	$'000	$'000
Current tax
UK corporation tax charge/(credit) on profit for the current year	-	-
Overseas income tax charge/(credit)	232	321
Adjustments in respect of prior periods	(42)	(18)
	_______	_______
Total current income tax	190	303
Deferred tax
Reversal/(recognition) of deferred tax asset	(9)	72
	_______	_______
Total deferred income tax	(9)	72
Total income tax expense recognised in the year	181	375

 

 

Deferred tax

Recognised deferred tax asset

	2021	2020
	$'000	$'000
At 1 January 2021	16	63
Recognised in profit and loss	(2)	(47)
	_______	_______
At 31 December 2021	14	16
Comprising:
Tax losses	14	16
	_______	_______
	14	16

 

Deferred income tax assets have only been recognised to the extent that it is considered probable that they can be recovered against future taxable profits based on profit forecasts for the foreseeable future. The deferred income tax assets at 31 December 2021 above are expected to be utilised in the next two years.

 

Recognised deferred tax liability

	2021	2020
	$'000	$'000
At 1 January 2021	24	-
Recognised in profit and loss	(11)	24
	_______	_______
At 31 December 2021	13	24
Comprising:
Timing differences	13	24
	_______	_______
	13	24

 

 

15        Earnings

 

Reported earnings per share

 

Basic earnings per share ("EPS") amounts are calculated by dividing net profit or loss for the year attributable to owners of the Company by the weighted average number of ordinary shares outstanding during the year.

 

The Group has one category of security potentially dilutive to ordinary shares in issue, 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 in issue. No dilution arose in the year as the exercise price was above the average share price for the year.

 

The following reflects the earnings and share data used in the basic earnings per share computations:

 

Year to 31 December	2021	2020
	$'000	$'000
Profit/(loss) attributable to equity holders of the parent:
Profit/(loss) attributable to ordinary equity holders of the parent for basic earnings	(847)	(2,457)
Weighted average number of ordinary shares in issue	41,153,537	34,136,617
Basic earnings/(loss) per share attributable to shareholders	(2.1)¢	(7.2)¢

 

Adjusted earnings per share

 

Adjusted earnings per share is calculated as follows:

	2021	2020
	$'000	$'000
Profit/(loss) attributable to ordinary equity holders of the parent for basic earnings	(847)	(2,457)
Adjusting items:
- exceptional items (see note 7}	-	(149)
- share-based payments	32	32
- finance expense on liabilities relating to contingent consideration	-	25
- amortisation of acquisition-related intangibles	686	686
- prior year adjustments to tax charge	(42)	(18)
	_______	_______
Adjusted earnings attributable to owners of the Parent	(171)	(1,881)
Weighted number of ordinary shares in issue	41,153,537	34,136,617
Adjusted earnings/(loss) per share attributable to shareholders	(0.4)¢	(5.5)¢

 

 

18        Intangible assets

 

Intangible assets comprise capitalised development costs (in relation to internally generated software and software acquired through business combinations), software acquired from third parties for use in the business, patents, customer relationships and goodwill.

 

An analysis of goodwill and other intangible assets is as follows:

 

2021	Development costs	Third party software	Patents	Customer relationships	Goodwill	Total
	$'000	$'000	$'000	$'000	$'000	$'000
Cost
At 1 January 2021	9,263	110	27	6,862	470	16,732
Additions	2,576	12	30	-	-	2,618
Foreign exchange	-	(2)	-	-	-	(2)
	_______	_______	_______	_______	_______	_______
At 31 December 2021	11,839	120	57	6,862	470	19,348
Amortisation
At 1 January 2021	(3,373)	(52)	-	(1,658)	-	(5,083)
Charge for the year	(2,105)	(21)	(2)	(686)	-	(2,814)
Foreign exchange	-	2	-	-	-	2
	_______	_______	_______	_______	_______	_______
At 31 December 2021	(5,478)	(71)	(2)	(2,344)	-	(7,895)
Net carrying amount
At 31 December 2021	6,361	49	55	4,518	470	11,453
At 31 December 2020	5,890	58	27	5,204	470	11,649

 

 

2020	Development costs	Third party software	Patents	Customer relationships	Goodwill	Total
	$'000	$'000	$'000	$'000	$'000	$'000
Cost
At 1 January 2020	6,391	108	23	6,862	470	13,854
Additions	2,872	4	4	-	-	2,880
Foreign exchange	-	(2)	-	-	-	(2)
	_______	_______	_______	_______	_______	_______
At 31 December 2020	9,263	110	27	6,862	470	16,732
Amortisation
At 1 January 2020	(1,957)	(34)	-	(972)	-	(2,963)
Charge for the year	(1,416)	(20)	-	(686)	-	(2,122)
Foreign exchange	-	2	-	-	-	2
	_______	_______	_______	_______	_______	_______
At 31 December 2020	(3,373)	(52)	-	(1,658)	-	(5,083)
Net carrying amount
At 31 December 2020	5,890	58	27	5,204	470	11,649
At 31 December 2019	4,434	74	23	5,890	470	10,891

 

 

19        Tangible assets

 

2021	Leasehold improvements	Computer equipment	Office equipment	Vehicles	Total
	$'000	$'000	$'000	$'000	$'000
Cost
At 1 January 2021	131	1,084	59	305	1,579
Additions	-	88	-	-	88
Foreign exchange differences	(2)	(21)	(1)	(6)	(30)
	_______	_______	_______	_______	_______
At 31 December 2021	129	1,151	58	299	1,637
Depreciation
At 1 January 2021	(24)	(222)	(20)	(95)	(361)
Charge for the year	(18)	(238)	(11)	(36)	(303)
Foreign exchange differences	1	6	-	2	9
	_______	_______	_______	_______	_______
At 31 December 2021	(41)	(454)	(31)	(129)	(655)
Net carrying amount
At 31 December 2021	88	697	27	170	982
At 31 December 2020	107	862	39	210	1,218

 

 

 

2020	Leasehold improvements	Computer equipment	Office equipment	Vehicles	Total
	$'000	$'000	$'000	$'000	$'000
Cost
At 1 January 2020	109	197	59	312	677
Additions	24	877	1	-	902
Foreign exchange differences	(2)	10	(1)	(7)	-
	_______	_______	_______	_______	_______
At 31 December 2020	131	1,084	59	305	1,579
Depreciation
At 1 January 2020	(7)	(87)	(9)	(59)	(162)
Charge for the year	(17)	(134)	(11)	(36)	(198)
Foreign exchange differences	-	(1)	-	-	(1)
	_______	_______	_______	_______	_______
At 31 December 2020	(24)	(222)	(20)	(95)	(361)
Net carrying amount
At 31 December 2020	107	862	39	210	1,218
At 31 December 2019	102	110	50	253	515

 

 

 

20        Right-of-use assets

 

Right-of-use assets comprise leases over office buildings and vehicles as follows:

 

2021	Office buildings	Vehicles	Total
	$'000	$'000	$'000
Cost
At 1 January 2021	661	32	693
Additions in respect of new leases	112	-	112
Disposals in respect of leases terminated	(10)	(32)	(42)
Effects of foreign exchange movements	(13)	-	(13)
	_______	_______	_______
At 31 December 2021	750	-	750
Depreciation
At 1 January 2021	(355)	(30)	(385)
Charge for the period	(164)	(2)	(166)
Eliminated on leases terminated	-	32	32
Effects of foreign exchange movements	9	-	9
	_______	_______	_______
At 31 December 2021	(510)	-	(510)
Net carrying amount
At 31 December 2021	240	-	240
At 31 December 2020	306	2	308

 

 

 

2020	Office buildings	Vehicles	Total
	$'000	$'000	$'000
Cost
At 1 January 2020	690	31	721
Additions in respect of new leases	227	-	227
Disposals in respect of leases terminated	(231)	-	(231)
Effects of foreign exchange movements	(25)	1	(24)
	_______	_______	_______
At 31 December 2020	661	32	693
Depreciation
At 1 January 2020	(368)	(14)	(382)
Charge for the period	(153)	(14)	(167)
Eliminated on leases terminated	157	-	157
Effects of foreign exchange movements	9	(2)	7
	_______	_______	_______
At 31 December 2020	(355)	(30)	(385)
Net carrying amount
At 31 December 2020	306	2	308
At 31 December 2019	322	17	339

 

 

21        Trade and other receivables and contract assets

 

Contract assets

 

Due after one year	2021	2020
	$'000	$'000
At 1 January	751	519
Contract assets recognised in the period	195	441
Transfer to current contract assets	(340)	(209)
	_______	_______
At 31 December	606	751

 

 

Due within one year	2021	2020
	$'000	$'000
At 1 January	609	293
Contract assets recognised in the period, net of releases to receivables or cash, or amortisation to profit or loss	(394)	107
Transfer from non-current contract assets	340	209
	_______	_______
At 31 December	555	609

 

 

Contract assets are comprised as follows:

 

Due after one year	2021	2020
	$'000	$'000
Contract assets relating to revenue	227	311
Contract fulfilment assets	379	440
	_______	_______
	606	751

 

 

Due within one year	2021	2020
	$'000	$'000
Contract assets relating to revenue	375	457
Contract fulfilment assets	180	152
	_______	_______
	555	609

 

The Group recognises impairments under IFRS 9 for relevant classes of assets. The Group thus reviews the amount of expected credit loss associated with its trade receivables based on forward looking estimates that take into account current and forecast credit conditions as opposed to relying on past historical default rates. In the absence of any historic credit losses and the expectation of no specific losses in the foreseeable future, the Directors assess a hypothetical likely default amount by applying a percentage "probability of default" to the receivables balance, such probability being related to the underlying credit rating of the customer or country of origin. Furthermore, taking into account the time value of money when applied to contracts assets (which may unwind over a period of years following their initial recognition), a loss allowance for expected credit losses has been recorded as follows:

 

	2021	2020
	$'000	$'000
Loss allowance at 1 January	37	29
Increase in loss allowance	52	8
	_______	_______
Loss allowance at 31 December	89	37

 

The loss allowance is comprised as follows:

 

	2021	2020
	$'000	$'000
On trade receivables	75	30
On contract assets	14	7
	_______	_______
Loss allowance at 31 December	89	37

 

The largest individual counterparty to a receivable included in trade and other receivables at 31 December 2021 was $1.14m (of which some $0.68m related to unbilled revenue) (2020: $0.56m). Based on invoiced receivables, the largest individual counterparty owed the Group $0.52m (2020: $0.20m). The increase in loss allowance is due almost entirely to two individually significant receivables balances (other than the largest) from customers located in a jurisdiction with a notionally higher risk of default, and the weighting of the largest within the loss allowance calculation. Other than these, the Group's customers are spread across a broad range of geographies, and approximately $1.5m has been received from customers since the reporting date.

 

 

 

22        Other assets

 

At 31 December	2021	2020
	$'000	$'000
Prepayments	146	130
Deposits	77	80
Other assets (including withholding tax, GST and VAT refunds)	92	275
	_______	_______
Total other assets	315	485

 

 

23        Loans and borrowings

 

Loans and borrowings comprise:

 

At 31 December	2021	2020
	$'000	$'000
Non-current liabilities
Secured term loans	23	277
Unsecured borrowings	585	919
	_______	_______
	608	1,196
Current liabilities
Current portion of term loans	11	99
Unsecured borrowings	125	145
	_______	_______
	136	244
Total loans and borrowings	744	1,440

 

The Group has two term loans, in its operating subsidiary in India and denominated in INR, with interest rates between 10% and 15.5% (in INR), repayable between 5 and 6 years from their inception, between June 2023 and September 2024.

 

 

24        Lease liabilities

 

Lease liabilities comprise liabilities arising from the committed and expected payments on leases over office buildings and vehicles.

 

2021

 

Amounts due in more than one year	Office buildings	Vehicles	Total
	$'000	$'000	$'000
At 1 January 2021	172	-	172
Liabilities taken on in the period	24	-	24
Liabilities (disposed of) in the period	(10)	-	(10)
Transfer from long-term to short-term	(103)	-	(103)
Effects of foreign exchange movements	(3)	-	(3)
	_______	_______	_______
At 31 December 2021	80	-	80

 

 

 

Amounts due in less than one year	Office buildings	Vehicles	Total
	$'000	$'000	$'000
At 1 January 2021	174	-	174
Liabilities taken on in the period	89	-	89
Liabilities (disposed of) in the period	(1)	-	(1)
Repayments of principal	(171)	-	(171)
Transfer to short-term from long-term	103	-	103
Effects of foreign exchange movements	(6)	-	(6)
	_______	_______	_______
At 31 December 2021	188	-	188

 

 

2020

 

Amounts due in more than one year	Office buildings	Vehicles	Total
	$'000	$'000	$'000
At 1 January 2020	186	1	187
Liabilities taken on in the period	163	-	163
Liabilities (disposed of) in the period	(28)	-	(28)
Transfer from long-term to short-term	(140)	(1)	(141)
Effects of foreign exchange movements	(9)	-	(9)
	_______	_______	_______
At 31 December 2020	172	-	172

 

 

Amounts due in less than one year	Office buildings	Vehicles	Total
	$'000	$'000	$'000
At 1 January 2020	193	12	205
Liabilities taken on in the period	69	-	69
Liabilities (disposed of) in the period	(56)	-	(56)
Repayments of principal	(164)	(12)	(176)
Transfer to short-term from long-term	140	1	141
Effects of foreign exchange movements	(8)	(1)	(9)
	_______	_______	_______
At 31 December 2020	174	-	174

 

PSPL, the Group's main operating subsidiary, has entered into various leases over office space in Bangalore and Mumbai, which are now all out of their initial commitment terms on notice periods of typically 2-3 months with rollover options. The Group also has a lease on office space in Nizhny Novgorod in Russia.  Now the impact of COVID-19 is diminishing and working from home flexibility is becoming more defined, the Group intends to review its office accommodation with a view to consolidating its principal office accommodation from the beginning of 2023.

 

 

 

25        Trade and other payables and contract liabilities

 

At 31 December	2021	2020
	$'000	$'000
Due within one year
Trade payables	152	810
Other payables	451	283
	_______	_______
Total trade and other payables	603	1,093

 

Trade payables include amounts due in respect of sales commissions due to sales agents which is payable in less than one year. Other payables comprise principally amounts due in respect of staff bonuses declared for December and paid in January.

 

Contract liabilities

 

Contract liabilities represent consideration received in respect of unsatisfied performance obligations. Changes to the Group's contract liabilities are attributable solely to the satisfaction of performance obligations.

 

At 31 December	2021	2020
	$'000	$'000
Due after one year
Contract liabilities at 1 January	207	274
Contract liabilities recognised in the period	152	20
Transfers to short-term liabilities	(81)	(87)
	_______	_______
Contract liabilities at 31 December	278	207

 

 

At 31 December	2021	2020
	$'000	$'000
Due within one year
Contract liabilities at 1 January	495	665
Contract liabilities recognised/(released to revenue) in the period	(107)	(257)
Transfers from long-term liabilities	81	87
	_______	_______
Contract liabilities at 31 December	469	495

 

 

 

26        Provisions

 

At 31 December	2021	2020
	$'000	$'000
Due after one year
Employee gratuities	141	116
Leave encashment	61	57
	_______	_______
	202	173

 

At 31 December	2021	2020
	$'000	$'000
Due within one year
Employee gratuities	7	13
Leave encashment	30	24
Other provisions (including tax)	35	126
	_______	_______
	72	163

 

Other provisions comprise tax and other expenses.

 

Under the Indian Payment of Gratuity Act 1972, employees with more than 5 years' service are eligible for the payment of a "gratuity" upon certain end of employment events, including retirement, resignation, death and termination or redundancy. The calculation of the gratuity due is based on the last drawn salary and number of years of service. The potential liability arising from these requirements is calculated by third party actuaries based on employee profiles, their completed number of years in the organization, their age, salary and also on the probability of termination of employment, and a provision made accordingly.

 

Under the terms of their employment, employees are eligible to carry forward 30 "earned leaves" (EL) to the next calendar year. Any EL balance over and above this is paid in cash by March the following year, hence resulting in a long-term provision.

 

 

27        Share capital and reserves

 

Share capital and share premium

 

Ordinary shares of 2.5p each (issued and fully paid)	$'000	Number
At 1 January 2020	1,065	32,532,431
Issued for cash during the year	147	4,500,000
	_______	_______
At 31 December 2020	1,212	37,032,431
Issued for cash during the year	289	8,375,000
	_______	_______
At 31 December 2021	1,501	45,407,431

 

On 2 and 5 July the Company issued a further 8,375,000 2.5 pence Ordinary shares at a price of 40.0 pence per share by way of a placing to institutional and other investors. The Company incurred incremental costs totalling $333,000 in respect of the Placing. IAS 32 Financial Instruments: Presentation requires the costs of issuing new shares to be charged against the share premium account. Management reviewed the incremental costs to identify those solely incurred in issuing new shares, those incurred in connection with the entire share capital, and those not associated with issuing new shares. All of the costs relating to the Placing were deemed to relate directly to the issue of new shares and thus resulted in a debit to share premium of $333,000.

 

 

30        Capital commitments and contingent liabilities

 

Other than as disclosed above, as at 31 December 2021 the Group had no material capital commitments (2020: nil) nor any contingent liabilities (2020: nil).

 

 

31        Events after the reporting date

 

There have been no events subsequent to the reporting date which would have a material impact on the financial statements.

 

General

 

Audited accounts

 

The financial information set out above does not comprise the Group or the Company's statutory accounts. The Annual Report and Financial Statements for the year ended 31 December 2020 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statements ("Annual Report") for the year ended 31 December 2020 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

 

The Independent Auditors' Report on the Annual Report for the year ended 31 December 2021 is unqualified, does not draw attention to any matters by way of emphasis, and does not contain a statement under 498(2) or 498(3) of the Companies Act 2006.  The Annual Report will be filed with the Registrar of Companies following the annual general meeting.

 

The Annual Report, together with a notice of the annual general meeting, are expected to be made available to shareholders in June 2021.  Copies will also be available on the Company's website (www.pelatro.com) and from the Company's registered office at 49 Queen Victoria Street, London EC4N 4SA from that date.

 

As this summary announcement is extracted from the full financial statements, certain references may refer to notes which are not included herein, and the Notes section is not reproduced in full.

 

Principal risks and uncertainties

 

The principal risks and uncertainties facing the Group together with actions being taken to mitigate them and future potential items for consideration will be set out in the Strategic Report section of the Annual Financial Report 2021.

 

Presentation of figures

 

Figures are rounded to the nearest $0.1m, $0.01m or $'000 as the case may be. Percentage increases or decreases stated above are based on the figures as rounded. Minor differences may arise in tabulation and figures presented elsewhere due to rounding differences.

 

 

This announcement was approved by the Board of Directors on 20 May 2022.