Half Year Results

Source: RNS
RNS Number : 3544I
Mind Gym PLC
02 December 2022
 

02 December 2022

 

Mind Gym PLC

 

("Mind Gym", the "Group" or the "Company")

 

Half year results for the six months ended 30 September 2022

 

Significant H1 momentum driving growth

 

 

MindGym (AIM: MIND), the global provider of human capital and business improvement solutions, announces its half year results for the six months ended 30 September 2022.

 

Key Financials

 

6 months to 30 Sept 2022

(H1 FY23)

6 months to 30 Sept 2021

(H1 FY22)

12 months to 31 Mar 2022 (FY22)

Change (H1 FY23 v H1 FY22)

Revenue

£26.8m

£24.1m

£48.7m

+11%

US Revenue

£16.7m

£13.9m

£29.0m

+20%

EMEA Revenue

£10.1m

£10.3m

£19.7m

-2%

Digitally enabled1 2 revenue

£18.9m

£20.3m

£38.4m

-7%

Gross profit margin

87.5%

85.9%

87.1%

+1.6pps

Statutory profit/(loss) before tax

£0.6m

£17k

£(0.5m)

n/m

EBITDA

£1.9m

£0.7m

£1.2m

+271%

Diluted EPS

0.84p

(0.01p)

1.59p

n/m

Cash at bank

£4.5m

£12.0m

£10.0m

-62%

Capital Expenditure

£2.2m

£2.8m

£6.1m

-21%

 

1Digitally enabled revenue comprises revenue from our digital products and revenue from delivery of virtual sessions.

2 Historic balances have been re-stated to include programme management and cancellation fees related to digitally enabled revenues. Virtual delivery revenues below have also been re-stated to include these fees

 

Overview - financial summary H1 FY23

·      Results in line with management's expectations - H1 FY23 has seen growth on H1 FY22, in both constant and actual currency ('FX') rates, despite the economic uncertainty and exit from Omicron at the start of FY23. FX benefited revenue growth by circa +9%

·      As anticipated, there was a switch back to in-person delivery after COVID, and this meant that Digitally-enabled revenues decreased 7% on prior year:

In-person deliveries grew from 4% in H1 FY22 to 15% of delivery revenue in H1 FY23. MindGym's business model can flex between in-person and Digital delivery as needed

Digitally-enabled revenues represented 71% of total revenue (H1 FY22: 84%)

On demand digital product revenues grew 3% to £2.8m (H1 FY22: £2.7m), representing 11% of total revenue (H1 FY22:11%)

·      Repeat revenue3 remained strong at 87% of Group revenue

·      Gross margin increased by 1.6 percentage points from H1 FY22 to 87.5% due to the higher mix of Design and Advisory ('D&A') revenues where related costs are included within administrative expenses

·      Staff costs have increased by 6% to £17.2m, largely reflecting wage inflation

·      Profit before tax of £0.6m (H1 FY22: £17k) is in line with Board expectations. This includes an incremental £0.5m of amortisation related to Performa, which had not commenced in H1 FY22

·      Cash balance at 30 September 2022 of  £4.5m (31 March 2022: £10.0m). The movement includes:

£2.2m of capital investments

£1.6m decrease in trade and other payables, reflecting primarily the impact of bonus and commission timings

a £3.5m increase in trade and other receivables; we expect much of this receivables increase to unwind in H2 FY23, resulting in an improvement in cash conversion and cash position

·      The Group retains a £10m debt facility (£6m RCF, £4m accordion) which matures after three years, providing additional flexibility if required.  The facility remains undrawn as at 2 December 2022

·      The Board continues to prioritise investment for growth in digital over the coming years, and therefore no interim dividend will be paid for the period ended 30 September 2022. Once the Board has greater clarity on the performance of its digital investments, and of the broader economic outlook, we will revisit our dividend policy

 

Overview - operational summary H1 FY23

 

New client framework agreements4

Secured a number of significant framework agreements during H1 FY23, including our largest ever, with a global energy company, with revenues forecast to be in excess of £10m over the next 24 months

Other framework agreements, each between £1m-£3m, are also expected to drive revenues in H2 FY23 and FY24

 

Accelerated innovation

Continued strategy of investing in innovation to drive growth through market-leading research and products

The Leadership Point of View ('POV') was launched at the end of FY22, with the related whitepaper launched in H1 FY23.

Our new Wellbeing POV ('Wellworking') was launched during H1 FY23; the whitepaper will be published in Q4 FY23, when we also be launching five new Wellworking live and eWorkout products

The 'Precision Coaching' whitepaper (MindGym's proprietary coaching methodology), is being launched in January 2023, and will drive interest in Performa, MindGym's digital 1:1 coaching SAAS platform.

 

Digital development

Performa continues to receive positive early feedback

Continued enhancements to the Performa platform user experience and the portfolio of c.100 eWorkouts

Beta trials of the new Organisational Diagnostics solution start in H2 FY23 which covers culture, DEI, wellbeing and leadership

 

3Repeat revenue is defined as revenue from clients that have purchased products and services in one or more of the previous three years.

4 MindGym defines framework agreements as client projects, normally involving substantial levels of client investment over time. These often include separate, but related, stages of work. In most scenarios, the service provider will deliver all of the stages, but these are unlocked over the life of the framework.

 

 

Current Trading & Outlook

 

·      MindGym's outlook for the full year remains unchanged, despite the impact of economic headwinds, notably in the US

·      Second half growth includes the benefit of the large corporate frameworks

 

 

Octavius Black, Chief Executive Officer of Mind Gym, said:

 

We are encouraged by our first half performance and the significant momentum going into the second half, as a result of securing our largest ever framework agreement. In a volatile economic environment with a tight labour market, MindGym is increasingly well placed as the 'go to' partner to address the talent challenges that all organisations struggle to resolve.

 

Our investment in innovation and digital continues to deliver. New publications on leadership, coaching and wellbeing will set the agenda and equip our clients to invest in ways that transform their business in half the time and for a fraction of the cost.  Our development of the Performa platform will build momentum for our new 1:1 coaching service in FY24, and our new organisational diagnostics solution, currently in beta trials, which furthers our objective to be the primary strategic partner providing an end-to end service for our clients. 

 

 

 

Enquiries:

  

Mind Gym plc

Octavius Black, Chief Executive Officer

Dominic Neary, Chief Financial Officer

  


+44 (0)20 7376 0626

 

Liberum (Nominated Adviser and Sole Broker)

Nick How

Edward Mansfield

Cara Murphy 

 


+44 (0)20 3100 2000

 



MHP Group (for media enquiries)

Reg Hoare

Katie Hunt

Veronica Farah

 


+44 (0)20 3128 8004

mindgym@mhpgroup.com

About Mind Gym

 

Mind Gym is a company that delivers business improvement solutions using scalable, proprietary products which are based on behavioural science. The Group operates in three global markets: business transformation, human capital management and learning & development.

Mind Gym is quoted on the London Stock Exchange Alternative Investment Market (ticker: MIND) and headquartered in London. The business has offices in London, New York and Singapore.

Further information is available at www.themindgym.com

 

 

Half Yearly report

 

Business overview

 

Revenues in H1 FY23 increased 11% on H1 FY22, reflecting underlying growth and the benefit of currency (FX) tailwinds. Whilst the US grew at 20% in the period, EMEA revenues have declined by 2% although this reflects some EMEA managed sales which were delivered, and therefore reported, in the US. MindGym works with 64% of the FTSE 100 and 57% of the S&P100.

 

Repeat revenue remained robust at 87%, in line with FY22 full year, slightly down on H1 FY22 (92%).

MindGym has won a number of significant framework agreements during H1 FY23, including its largest ever in respect of a global energy company, as well as a number of others each between £1m-£3m, which are expected to drive revenues in H2 FY23 and through FY24

 

Revenue from the Group's top 25 clients contributed 40% of revenue which is down from the 47% seen for the same period in FY22, reflecting a broadening of our client base.

 

Digitally-enabled revenue decreased 7% on prior year levels to £18.9m, (H1 FY22: £20.3m) to represent 71% of total revenue (H1 FY22: 84%), driven by the anticipated growth of in-person deliveries which grew from 4% in H1 FY22 to 15% of delivery revenue in H1 FY23. MindGym's business model can flex between in-person and Digital delivery as needed. Existing on demand digital product revenue grew by 3% to £2.8m (H1 FY22: £2.7m) to represent 11% of total revenue (H1 FY22: 11%).

 

We continue to invest for growth through accelerated innovation and digital development:

·      Our investment since FY20 has increased the pace of our innovation. The Leadership POV has been successfully launched, and Wellbeing ("Wellworking") was launched in H1 FY23, with significant interest from our clients. The related whitepaper on Wellbeing ("Wellworking") and five new live products and eWorkouts on this PoV will be launched in Q4 FY23   

 

·      The 'Precision Coaching' whitepaper (MindGym's proprietary coaching methodology), which will drive interest in Performa, MindGym's digital 1:1 coaching SAAS platform, is being launched in January 2023

 

·      Performa continues to receive positive early feedback and we anticipate momentum building over the next 12-24 months. We will also launch a new organisational diagnostics solution for culture, DEI, wellbeing and leadership, with Beta trials starting in H2 FY23; and enhancements to the eWorkouts solutions in the second half of this financial year

 

 

Financial Performance

 

Revenue in H1 FY23 increased 11% (2% on a constant currency basis) on H1 FY22 to £26.8m (H1 FY22: £24.1m):

 

·      In EMEA, revenue decreased by 2% to £10.1m (H1 FY22: £10.3m), representing 38% of total revenue. EMEA revenues have been reduced by EMEA managed sales which were delivered, and therefore reported, in the US. Revenue from the top 25 clients decreased to 59% of regional revenue (H1 FY22: 66%), reflecting the broadening of the client base

 

·      In the US, revenue increased by 20% (4% on a constant currency basis) to £16.7m (H1 FY22: £13.9m), representing 62% of total revenue. Revenue from the top 25 clients was broadly flat at 54% of regional revenue (H1 FY22: 55%)

 

Revenue from digital products in H1 FY23 was £2.8m (H1 FY22: £2.7m), representing 11% of total revenue (H1 FY22: 11%). Digitally-enabled revenue (including workouts delivered virtually) decreased by 7% to £18.9m (H1 FY22: £20.3m), representing 71% of total revenue (H1 FY22: 84%), due to some switch back to in-person deliveries after COVID.

 

Gross profits margins at 87.5% are up 1.6 percentage points up on prior year. This largely reflects the growth of D&A work in the period, in part supporting the significant framework agreements that are being won; this will result in significant revenues over H2 FY23 and FY24. Whilst we have seen cost of sales increases driven by the increased share of in-person delivery, these are more than offset (in absolute terms) by the higher prices of in-person delivery.

 

Overheads of £22.7m in the period increased by 10% (H1 FY22: £20.6m), reflecting wage inflation and the carryover of headcount increases in FY22 with salary costs increasing 6% and average headcount increasing 2% to 324 (H1 FY22: 319). The price increases implemented in the year, coupled with operational efficiencies, have more than offset the wage inflation we have seen. Share based payments were £28k in the period (H1 FY22: £0.3m), impacted by the reversal of historic charges due to attrition. Awards to management, including relevant performance conditions, were granted in July 2022.

 

Profit before tax in the period was £0.6m (H1 FY22: £17k); this includes an incremental £0.5m of amortisation related to Performa, which had not commenced in H1 FY22.

 

Basic earnings per share in the period were 0.85 pence (H1 FY22: loss of -0.01 pence). Diluted earnings per share were 0.84 pence (H1 FY22: -0.01 pence).

 

The Group continued to invest in its new digital products with £2.1m (H1 FY22: £2.4m) capitalised during the period, which meets the definition of development costs under IAS 38, "Intangible assets". Total intangible assets were valued at £9.8m at 31 September 2022. A further £0.1m was capitalised in tangible assets in the period relating to IT equipment and office fixtures and fittings.

 

The balance sheet remains secure with no bank debt; cash at bank at 30 September was £4.5m, a reduction of £5.5m from the year-end balance at 31 March 2022 of £10.0m. This was due predominantly to £2.2m capital expenditure, a £1.6m decrease in trade and other payables related to the impact of bonus/commission timings, and a £3.5m increase in trade and other receivables; we expect much of this receivables increase to unwind in H2 FY23, resulting in an improvement in cash conversion and cash position. Overdue debt has reduced to 9% of trade debtors from 10% in H1 FY22.

 

The Group retains a £10m debt facility (£6m RCF, £4m accordion) which matures after three years, providing additional flexibility if required.  The facility remains undrawn as at 2 December 2022.

 

Overall net assets increased by £1.7m to £21.3m in the six months to 30 September 2022.

 

 

Dividend

 

The Board continues to prioritise investment for growth over the coming years, and therefore no interim dividend will be paid for the period ended 30 September 2022. The dividend policy is reviewed annually.

 

 

Outlook 

 

MindGym's outlook for the full year remains unchanged, despite the impact of economic headwinds, notably in the US.

 

Second half growth includes the benefit of large corporate frameworks.

 

 

Octavius Black

Chief Executive Officer

 

Dominic Neary

Chief Financial Officer

 

 

MIND GYM PLC    CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 



6 months to

30 Sept

2022

(Unaudited)

6 months to

30 Sept

2021

(Unaudited)

Year to

31 March

2022

(Audited)

 

Note

£'000

£'000

£'000






Revenue

3

26,759

24,142

48,668

Cost of sales


(3,344)

(3,418)

(6,284)

Gross profit


23,415

20,724

42,384

Administrative expenses


(22,749)

(20,645)

(42,733)

 

Operating profit/(loss)


666

79

(349)

 

Finance income

5

27

9

19

Finance costs

5

(52)

(71)

(152)





Profit/(loss) before taxation


641

17

(482)

 

Tax on profit/(loss)

6

207

(30)

2,084

 

Profit/(loss) for the financial period from continuing operations attributable to owners of the parent


848

(13)

1,602






Items that may be reclassified subsequently to profit or loss





Exchange translation differences on consolidation


785

63

192

Other comprehensive income for the period attributable to the owners of the parent


785

63

192

 

Total comprehensive income for the period attributable to the owners of the parent


1,633

50

1,794






Earnings per share (pence)





Basic

7

0.85p

(0.01p)

1.60p

Diluted

7

0.84p

(0.01p)

1.59p

 

 

                                                                                                                                          

MIND GYM PLC    CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 



30 September

2022

30 September

2021

31

March

2022

 

Note

(Unaudited)

£'000

(Unaudited)

£'000

(Audited)

£'000

Non-current assets





Intangible assets

9

9,787

5,204

8,175

Property, plant and equipment


4,584

3,287

2,815

Deferred tax assets


3,084

472

2,846

Other receivables


257

212

217



17,712

9,175

14,053

Current assets





Inventories


35

-

7

Trade and other receivables

10

13,553

10,521

10,063

Current tax receivable


594

280

494

Cash and cash equivalents


4,507

11,972

10,021



18,689

22,773

20,585

 

Total assets


36,401

31,948

34,638

 





Current liabilities





Trade and other payables

11

11,123

11,250

12,729

Lease liability


1,151

1,106

856

Redeemable preference shares


50

50

50

Current tax payable


-

18

28

 


12,324

12,424

13,663

Non-current liabilities





Lease liability


2,761

1,614

1,349






Total liabilities


15,085

14,038

15,012

 

Net assets


21,316

17,910

19,626

 

Equity





Share capital

13

1

1

1

Share premium


242

213

213

Share option reserve


597

603

608

Retained earnings


20,476

17,093

18,804

 

Equity attributable to owners of the parent Company


21,316

17,910

19,626

 

The Board of Directors approved these condensed interim financial statements on 1 December 2022.

 

 

MIND GYM PLC    CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

                                                                                                                                                                    

 

 

 


Share capital

Share premium

Share option reserve

Retained earnings

Total equity


Note

£'000

£'000

£'000

£'000

£'000

 

At 1 April 2021


1

157

674

16,620

17,452

 

Loss for the period


-

-

-

(13)

(13)

 

Other comprehensive income:







Exchange translation differences on consolidation


-

-

-

63

63

Total comprehensive income for the period


-

-

-

50

50

Exercise of options


-

56

(407)

407

56

Credit to equity for share based payments

14

-

-

336

-

336

Tax relating to share-based payments


-

-

-

16

16

 

At 30 September 2021


1

213

603

17,093

17,910








 

Profit for the period


-

-

-

1,615

1,615

 

Other comprehensive income:







Exchange translation differences on consolidation


-

-

-

129

129

Total comprehensive income for the period


-

-

-

1,744

1,744

Credit to equity for share based payments

14

-

-

5

-

5

Tax relating to share-based payments


-

-

-

(33)

(33)

 

At 31 March 2022


1

213

608

18,804

19,626

 

Profit for the period


-

-

-

848

848

 

Other comprehensive income:







Exchange translation differences on consolidation


-

-

-

785

785

Total comprehensive income for the period





1,633

1,633

Exercise of options


-

29

(39)

39

29

Credit to equity for share based payments

14

-

-

28

-

28

 

At 30 September 2022


1

242

597

20,476

21,316

 

 

 

MIND GYM PLC    CONSOLIDATED STATEMENT OF CASH FLOWS

                                                                                                                                                                   



6 months to

30 Sept

2022

 (Unaudited)

6 months to

30 Sept

2021

 (Unaudited)

Year to

31 March

2022

(Audited)


Note

£'000

£'000

£'000

Cash flows from operating activities





Profit/(loss) for the financial period


848

(13)

1,602

 

Adjustments for:





Amortisation of intangible assets


508

34

325

Depreciation of tangible assets


713

591

1,252

Net finance costs


25

62

133

Taxation (credit)/charge


(207)

30

(2,084)

(Increase) in inventories


(28)

-

(7)

(Increase)/decrease in trade and other receivables


(3,489)

238

686

(Decrease) in payables and provisions


(1,606)

(2,525)

(1,084)

Share based payment charge

14

28

336

341

Cash generated from operations


(3,208)

(1,247)

1,164

Net tax (paid)


(128)

(329)

(812)

Net cash generated from operating activities


(3,336)

(1,576)

352

 

Cash flows from investing activities





Purchase of intangible assets


(2,120)

(2,361)

(5,623)

Purchase of property, plant and equipment


(91)

(423)

(514)

Interest received


26

5

12

Net cash used in investing activities


(2,185)

(2,779)

(6,125)

 

Cash flows from financing activities





Cash repayment of lease liabilities


(683)

(603)

(1,226)

Issuance of ordinary shares


29

56

56

Interest paid


-

-

(27)

Net cash used in financing activities


(654)

(547)

(1,197)

 

Net (decrease) in cash and cash equivalents


(6,175)

(4,902)

(6,970)

Cash and cash equivalents at beginning of period


10,021

16,833

16,833

Effect of foreign exchange rate changes


661

41

158

Cash and cash equivalents at the end of period


4,507

11,972

10,021

 

Cash and cash equivalents at the end of period comprise:





Cash at bank and in hand


4,507

11,972

10,021

 

 

MIND GYM PLC    NOTES TO THE GROUP FINANCIAL STATEMENTS

                                                                                                                                                                   

1.   General information

Mind Gym plc ("the Company") is a public limited company incorporated in England & Wales and its ordinary shares are traded on the Alternative Investment Market of the London Stock Exchange ("AIM"). The address of the registered office is 160 Kensington High Street, London W8 7RG. The group consists of Mind Gym plc and its subsidiaries, Mind Gym (USA) Inc., Mind Gym Performance (Asia) Pte. Ltd and Mind Gym (Canada) Inc. (together "the Group").

 

The principal activity of the Group is to apply behavioural science to transform the performance of companies and the lives of the people who work in them. The Group does this primarily through research, strategic advice, management and employee development, employee communication, and related services.

 

2.   Basis of preparation

The condensed interim financial statements have been prepared in accordance with the requirements of the AIM Rules for Companies. As permitted, the Company has chosen not to adopt IAS 34 "Interim Financial Statements" in preparing this interim financial information. The condensed interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 March 2022, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union, including interpretations issued by the International Financial Reporting Interpretations Committee ("IFRIC"), and with the Companies Act 2006 applicable to companies reporting under IFRS. The unaudited interim financial information does not constitute statutory accounts within the meaning of the Companies Act 2006. This interim report, which has neither been audited nor reviewed by independent auditors, was approved by the board of directors on 1 December 2022.

 

Statutory accounts for the year ended 31 March 2022 were approved by the Board of Directors on 9 June 2022 and delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under Section 498 of the Companies Act 2006.

 

The interim financial statements have been prepared on a going concern basis under the historical cost convention.

 

The interim financial statements are presented in pounds sterling. All values are rounded to £1,000 except where otherwise indicated.

 

The accounting policies used in preparing the interim results are the same as those applied to the latest audited annual financial statements.

 

3.   Segmental analysis

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker, who is responsible for allocating resources and assessing performance of the business. The chief operating decision maker has been identified as the Board. The Group has two operating segments: EMEA (comprising the United Kingdom and Singapore) and America (comprising the United States and Canada).

Both segments derive their revenue from a single business activity, the provision of human capital and business improvement solutions.

The Group's business is not highly seasonal and the Group's customer base is diversified with no individually significant customer.

 

Segment results for the 6 months ended 30 September 2022 (Unaudited)

 

Segment result


EMEA

America

Total


£'000

£'000

£'000

Revenue

10,078

16,681

26,759

Cost of sales

(1,285)

(2,059)

(3,344)

Administrative expenses

(11,639)

(11,110)

(22,749)

Profit before inter-segment charges

(2,846)

3,512

666

Inter-segment charges

3,260

(3,260)

-

Operating profit - segment result

414

252

666

Finance income



27

Finance costs



(52)

Profit before tax



641

 

The mix of revenue for the six months ended 30 September 2022 is set out below.

 

EMEA

America

Group

Delivery

67.1%

64.7%

65.6%

Design

13.2%

14.8%

14.1%

Digital

11.6%

10.0%

10.7%

Licensing and certification

4.5%

6.7%

5.8%

Other

2.1%

2.4%

2.3%

Advisory

1.5%

1.4%

1.5%

 

 

Segment results for the 6 months ended 30 September 2021 (Unaudited)

 

Segment result


EMEA

America

Total


£'000

£'000

£'000

Revenue

10,255

13,887

24,142

Cost of sales

(1,459)

(1,959)

(3,418)

Administrative expenses

(11,541)

(9,104)

(20,645)

Profit before inter-segment charges

(2,745)

2,824

79

Inter-segment charges

1,785

(1,785)

-

Operating (loss)/profit - segment result

(960)

1,039

79

Finance income



9

Finance costs



(71)

Profit before tax



17

 

The mix of revenue for the six months ended 30 September 2021 is set out below.

 

EMEA

America

Group

Delivery

64.6%

70.6%

68.1%

Design

11.2%

6.3%

8.3%

Digital

11.5%

11.3%

11.4%

Licensing and certification

4.4%

5.5%

5.0%

Other

6.4%

5.1%

5.7%

Advisory

1.9%

1.2%

1.5%

 

 

Segment results for the year ended 31 March 2022 (Audited)

 

Segment result


EMEA

America

Total


£'000

£'000

£'000

Revenue

19,715

28,953

48,668

Cost of sales

(2,572)

(3,712)

(6,284)

Administrative expenses

(23,705)

(19,028)

(42,733)

(Loss)/profit before inter-segment charges

(6,562)

6,213

(349)

Inter-segment charges

5,084

(5,084)

-

Operating (loss)/profit - segment result

(1,478)

1,129

(349)

Finance income



19

Finance costs



(152)

Loss before tax



(482)

 

The mix of revenue for the year ended 31 March 2022 is set out below.

 

EMEA

America

Group

Delivery

60.2%

66.0%

63.7%

Design

13.4%

9.8%

11.2%

Digital

11.9%

10.7%

11.2%

Licensing and certification

5.8%

6.3%

6.0%

Other

6.8%

6.2%

6.5%

Advisory

1.9%

1.0%

1.4%

 

 

4.   Employees

Staff costs were as follows:


6 months to 30 Sept 2022

(Unaudited)

6 months to 30 Sept 2021

(Unaudited)

Year to 31 March 2022

(Audited)


£'000

£'000

£'000

 




Wages and salaries

15,194

13,839

28,828

Social security costs

1,395

1,477

2,825

Pension costs - defined contribution plans

550

498

983

Share-based payments

28

336

341


17,167

16,150

32,977

 

 

The average number of Group's employees by function was:

 


6 months to 30 Sept 2022

(Unaudited)

6 months to 30 Sept 2021

(Unaudited)

Year to 31 March 2022

(Audited)

Delivery

208

190

196

Support

77

80

86

Digital

39

49

50


324

319

332

 

 

The period end number of Group's employees by function was:

 


6 months to 30 Sept 2022

(Unaudited)

6 months to 30 Sept 2021

(Unaudited)

Year to 31 March 2022

(Audited)

Delivery

212

194

206

Support

77

90

88

Digital

43

62

41


332

346

335

 

 

5.   Net finance costs


6 months to 30 Sept 2022

(Unaudited)

6 months to 30 Sept 2021

(Unaudited)

Year to 31 March 2022

(Audited)


£'000

£'000

£'000

Finance income




Bank interest receivable

26

5

12

Finance lease income

1

4

7





Finance costs




Bank interest payable

-

-

(27)

Lease interest (IFRS 16)

(52)

(71)

(125)


(25)

(62)

(133)

 

6.   Tax

The statutory tax credit of £207,000 (six months ended 30 September 2021: charge of £30,000; year ended 31 March 2022: credit of £2,084,000) represents an effective tax rate on profit before tax of -32% (six months ended 30 September 2021: 176.5%; year ended 31 March 2022: 432.4%).

7.   Earnings per share

Basic earnings per share is calculated by dividing the earnings attributable to shareholders of the Company by the weighted average number of ordinary shares in issue during the year. The Company has potentially dilutive shares in respect of the share-based payment plans (see Note 14).


30 Sept 2022

(Unaudited)

30 Sept 2021

(Unaudited)

31 March 2022

(Audited)

Weighted average number of shares in issue

100,119,558

99,914,842

100,009,727

Potentially dilutive shares (weighted average) *

1,059,821

-

442,548

Fully diluted number of shares (weighted average)

101,179,379

99,914,842

100,452,275




 

*For 30 September 2021 dilutive potential ordinary shares have no effect on the calculation of diluted EPS as their conversion into ordinary shares cannot increase the loss per share. 

 


6 months to 30 Sept 2022

(Unaudited)

pence

6 months to 30 Sept 2021

(Unaudited)

pence

Year to 31 March 2022

(Audited)

pence

Basic earnings per share

0.85

(0.01)

1.60

Diluted earnings per share

0.84

(0.01)

1.59

 

 

8.   Dividends

 

The Board did not propose a final dividend for the year ended 31 March 2022. No interim dividend is proposed for the period to 30 September 2022.

 

9.   Intangible assets

 

Patents

Development costs

Total

 

£'000

£'000

£'000

Cost




At 1 April 2022

63

10,384

10,447

Additions

-

2,120

2,120

At 30 September 2022

63

12,504

12,567

 

Amortisation




At 1 April 2022

63

2,209

2,272

Amortisation charge

-

508

508

At 30 September 2022

63

2,717

2,780

 

Net book value




At 31 March 2022

-

8,175

8,175

At 30 September 2022

-

9,787

9,787

 

 

Development cost additions in the six months ended 30 September 2022 includes software development costs directly incurred in the creation of new digital assets.

 

10.  Trade and other receivables


30 Sept 2022

(Unaudited)

30 Sept 2021

(Unaudited)

31 March 2022

(Audited)


£'000

£'000

£'000

Trade receivables

10,657

8,455

7,999

Less provision for impairment

(259)

(227)

(212)

Net trade receivables

10,398

8,228

7,787

Net investment in sub-lease

-

169

81

Other receivables

202

159

82

Prepayments

1,074

870

1,170

Accrued income

1,879

1,095

943


13,553

10,521

10,063

 

Non-current assets includes £257,000 (30 September 2021: £212,000; 31 March 2022: £217,000) of prepayments in respect of property deposits. 

Trade receivables have been aged with respect to the payment terms as follows:


30 Sept 2022

(Unaudited)

30 Sept 2021

(Unaudited)

31 March 2022

(Audited)


£'000

£'000

£'000

Not past due

9,311

7,650

7,274

Past due 0-30 days

693

533

401

Past due 31-60 days

216

121

109

Past due 61-90 days

344

146

25

Past due more than 90 days

92

5

190


10,656

8,455

7,999

 

11.  Trade and other payables


30 Sept 2022

(Unaudited)

30 Sept 2021

(Unaudited)

31 March 2022

(Audited)


£'000

£'000

£'000

Trade payables

1,019

1,199

1,401

Other taxation and social security

829

733

663

Other payables

623

598

690

Accruals

4,248

4,734

5,257

Deferred income

4,404

3,986

4,718


11,123

11,250

12,729

           

12.  Borrowings

The Group entered into a £10 million debt facility (£6m RCF, £4m accordion) on 30 September 2021 which matures after 3 years.  The facility remains undrawn as at 2 December 2022. 

 

 

13.  Share capital

 

 


30 Sept

2022

30 Sept

2022

30 Sept

2021

30 Sept

2021

31 March 2022

31 March 2022



Cost


Cost


Cost


Number

£'000

Number

£'000

Number

£'000

Ordinary shares of £0.0001 At 1 April

100,105,660

1

99,791,784

1

99,791,784

1

Issue of shares to satisfy options

61,924

-

313,876

-

313,876

-

Ordinary shares of £0.00001 at period end

100,167,584

1

100,105,660

1

100,105,660

1

 

 

14.  Share based payments

The Group awards options to selected employees under a Long-Term Incentive Share Option Plan ("LTIP"). The options granted to date vest subject only to remaining employed up to the vesting date. Unexercised options do not entitle the holder to dividends or to voting rights.  The awards granted during the six months to 30 September 2021 are subject to performance conditions based on revenue, adjusted earnings per share and total shareholder return.

 

The awards granted in the six months to 30 September 2022 are subject to performance conditions based on revenues and EBITDA. Some awards granted during this time period are time bound only.

 

On the 30th September 2019 the Group launched an annual Save As You Earn Scheme and an Employee Share Purchase Plan for all eligible employees in the UK and USA respectively.

 

 

The total share-based payments expense was:

 


6 months to 30 Sept 2022

(Unaudited)

6 months to 30 Sept 2021

(Unaudited)

Year to 31 March 2022

(Audited)


£'000

£'000

£'000

Equity settled share-based payments

28

336

341

 

 

 

 

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