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Pelatro PLC - Half-year Report

RNS Number : 3593A
Pelatro PLC
29 September 2020
 

 

 

29 September 2020

Pelatro Plc

 

("Pelatro" or the "Group")

 

Interim results

 

New contract win

 

 

Pelatro Plc (AIM: PTRO), the precision marketing software specialist, is pleased to announce today its interim results for the 6 months ended 30 June 2020.

 

Financial highlights

 

•             Revenue $2.29m (H1 2019: $2.71m)

•             Recurring revenue $1.53m (H1 2019: $0.84m), 67% of revenue (H1 2019: 31%)

•             Adjusted EBITDA* $0.66m (H1 2019: $0.81m)

•             EBITDA margin 29%

•             Adjusted earnings per share (0.6)¢ (H1 2019: 0.5¢)

•             Gross cash as at 30 June 2020 $0.75m (at 31 December 2019: $1.12m); approximately $2.7m received from debtors since FY19 end

 

Operational highlights

 

•             New contract win with an OpCo of an existing customer group - expansion within the group thereby strengthening our position further

•             mViva successfully installed at our largest customer site (350m subscribers) - a major milestone with respect to the maturity of our software

 

Post period end highlights

 

•             Completed placing of 4.5m shares to raise £2.1m (pre expenses)

•             Gross cash at 31 August $3.16m

•             Current revenue visibility of $5m for full year

•             Plus a near-term pipeline of $15m, of which $4m is from existing customers

 

 

New contract win

 

Pelatro also announces that it has expended its relationship with a large telco group, which is a customer of Pelatro, by winning a new contract from another opco within that group. This contract is expected to contribute about US$1.5m of revenue over a 5 year period and will add to our recurring revenue base.

 

 

Outlook

 

Management expectations for the year underpinned by:

 

•             revenue visibility of $5m for full year (including $2.3m reported for first half)

•             2020 pipeline of $8m, of which of which $4m is from existing customers for various new modules and/or products, i.e. cross-selling opportunities where Pelatro is the only contender in most cases

 

 

Richard Day, Non-executive Chairman of Pelatro commented:

 

"Our interim results follow the equity fundraising we announced in August, in which we successfully raised £2.1m from new and existing shareholders to invest in sales and marketing and help fund our continuing organic growth.

 

These remain challenging times in world markets generally with the continuing Covid-19 pandemic; however, consumers are still using and relying on their mobile phones and we are working closely with our clients, the telcos, to ensure that the best service can be offered to their millions of users. We were able to announce today a new contract with the operating company of one of our existing companies. We continue to develop new and innovative products and our strategy remains focussed on increasing our Annual Recurring Revenue.

 

As with last year, we anticipate significant weighting of revenue towards our second half. We have had a good start to the second half and we have a strong pipeline from which we expect to be able to deliver revenue in line with expectations on the basis of license sales. However, we will continue to prefer gain share and managed service contracts where possible which give significantly higher returns to Pelatro over the contract length. With the pace of customer engagement picking up there remains a lot of work to be done but we are looking forward to the future with every confidence."

 

 

Analyst presentation

 

A copy of the results presentation provided to analysts will be available on Pelatro's website later today (www.pelatro.com).

 

For further information contact:

 

Pelatro Plc

 

Subash Menon, Managing Director

c/o Cenkos

Nic Hellyer, Finance Director

 

 

 

Cenkos Securities plc (Nominated Adviser and Broker)

+44 (0)20 7397 8900

Stephen Keys / Cameron MacRitchie (corporate finance)

 

Michael Johnson (sales)

 

 

 

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

 

 

Notes to editors

 

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

 

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

 

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

 



 

Managing Director's statement

 

Engagements with existing customers like implementation and support are progressing well despite Covid-19. With respect to new contracts, while there have been Covid-19 related delays, we expect our overall win rate to remain the same. The additional level of scrutiny that businesses had introduced with respect to investments had lengthened the sales cycle over the past 6 months; however, we are now starting to experience positive movement with customers starting to release contracts and purchase orders. The contract win announcement from us today is a result of this positive movement. Consequently, given the level of the current pipeline, we are confident of achieving our order booking target for 2020.

 

Given that all our customers are telcos, we are delighted to note that their businesses, while impacted to some extent due to Covid-19, are quite resilient due to the higher level of usage of data by their consumers. Most businesses have moved online as have educational institutions and a variety of other activities. This move has resulted in considerable increase in data consumption by both individuals and enterprises leading to higher revenue from data products offered by telcos.

 

The new contract win announced today within a telco group, who is already our customer, considerably improves the value of that customer as a reference. As well as bringing valuable additional revenue, it acts as proof of further acceptance of mViva within that telco group. This success further solidifies Pelatro's position within the Customer Engagement space.

 

As noted in the announcement of the placing on 4 August, the Group intends to strengthen the sales team in both existing emerging and new developed markets. Interviews are already in progress to identify and appoint sales persons to cover both Europe and the Middle East/Africa.

 

 

Financial review

 

Revenue and profitability

 

In the six months to 30 June 2020 revenue decreased by 15% over the comparable period to $2.29m (H1 2019: $2.71m). Like many companies, we have experienced some delays as a result of Covid-19 but the Group remains confident that this is business will be picked up in the second half, which is the strongest period for us historically.

 

Of the $2.29m, approximately $1.53m (H1 2019: $0.84m) was recurring revenue, comprising managed services, post contract support and gain share income. Taking change requests of $0.34m into account, over 80% of revenue is now repeating in nature.

 

Underlying operating loss (excluding the impact of non-cash share-based payments, amortisation of customer-related intangible assets and exceptional items) was $0.43m (H1 2019: $0.20m profit). 32 extra staff have been employed to service our large managed services contract, although the majority of these were taken on after the period end.

 

Net cash and trade receivables

 

Cash generated from operating activities was approximately $1.18m after working capital movements (H1 2019: $0.34m). After net financing receipts of $0.81m (excluding approximately $93,000 relating to lease payments under IFRS 16) and capital expenditure of around $2.00m, gross cash at 30 June 2020 was approximately $0.75m. Financial debt (excluding IFRS 16 liabilities) was approximately $1.29m, giving net debt of approximately $0.54m (FY 2019: $0.69m net cash). Post period end, the Group completed a fundraising, raising £2.1m before expenses.

 

Short-term trade receivables (including unbilled revenue but excluding contract assets) as at 30 June 2020 were $4.80m (31 December 2019 $5.28m) .

 

 

Expenditure on non-current assets

 

Capitalised development expenditure was $1.21m (H1 2019: $1.11m) and the Group spent $0.79m on fixed assets, the vast majority of which was computer server equipment required to fulfil the significant managed service contract and which is already producing revenue. This was financed by way of a matching term loan.

 

 

Current trading and outlook

 

As with previous years we anticipate significant weighting of revenue towards the second half. The near term pipeline remains strong and the Group will continue to focus on transitioning this from "one time" revenue like license fees to "recurring revenue" which is more sustainable and predictable. In view of the changing economic scenario, telcos are increasingly exploring opex rather than capex solutions. This is naturally more conducive to our strategy and consequently our transition to recurring revenue is progressing unabated. We expect this trend to be in line with our expectations resulting in significant increase in recurring revenue. We are confident of recurring revenue, as a proportion of our total revenue, moving to more than 80% in the next couple of years.

 

 



 

Group statement of comprehensive income



6 months to

30 June 2020

6 months to

30 June 2019

Year to

December 2019


Note

$'000

$'000

$'000



(unaudited)

(unaudited)

(audited)

Revenue

2

2,291

2,714

6,667

Cost of sales and provision of services


(667)

(634)

(999)



_______

_______

_______

Gross profit


1,624

2,080

5,668






Adjusted administrative expenses


(1,738)

(1,879)

(4,048)



_______

_______

_______

Adjusted operating profit/(loss)


(114)

201

1,620

Exceptional items

3

149

-

236

Amortisation of acquisition-related intangibles

3

(342)

(349)

(686)

Share-based payments

3

(27)

(49)

(52)



_______

_______

_______

Operating profit/(loss)


(334)

(197)

1,118

Finance income

4

37

20

54

Finance expense

5

(106)

(85)

(164)



_______

_______

_______

Profit/(loss) before taxation


(403)

(262)

1,008

Income tax credit/(expense)


(36)

4

(194)



_______

_______

_______

PROFIT/(LOSS) FOR THE PERIOD


(439)

(258)

814






Other comprehensive income/(expense):





Items that may be reclassified subsequently to profit or loss:





Exchange differences


21

1

(25)



_______

_______

_______

Other comprehensive income, net of tax


21

1

(25)






TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE PERIOD


(418)

(257)

789






Earnings/(loss) per share





Reported





Basic and diluted

6

(1.3)¢

(0.8)¢

2.5¢






Adjusted





Basic and diluted

6

(0.6)¢

0.5¢

4.2¢






 



 

Group statement of financial position



As at

30 June 2020

As at

30 June 2019

As at 31 December 2019


Note

$'000

$'000

$'000



(unaudited)

(unaudited)

(audited)

Assets





Non-current assets





Intangible assets

7

11,132

10,648

10,891

Property, plant and equipment

8

1,220

408

515

Right-of-use assets

9

240

420

339

Deferred tax assets


92

-

63

Contract assets


446

117

519

Trade and other receivables


238

306

231



_______

_______

_______



13,368

11,899

12,558






Current assets





Contract assets


246

304

293

Trade receivables


4,800

4,272

5,283

Other assets


576

425

501

Cash and cash equivalents

                       

749

1,118

1,101



_______

_______

_______



6,371

6,119

7,178






Total assets


19,739

18,018

19,736






Liabilities





Non-current liabilities





Borrowings

10

1,145

359

362

Lease liabilities

11

104

260

187

Contract liabilities


228

202

274

Long-term provisions


113

-

124

Other financial liabilities

13

-

1,187

-



_______

_______

_______



1,590

2,008

947






Current liabilities





Trade and other payables

12

892

356

523

Borrowings

10

148

73

246

Lease liabilities

11

171

224

205

Contract liabilities and deferred revenue


337

257

665

Other financial liabilities

13

801

-

948



_______

_______

_______



2,349

910

2,587






Total liabilities


3,939

2,918

3,534






NET ASSETS


15,800

15,100

16,202






Issued share capital and reserves





Share capital


1,065

1,065

1,065

Share premium


11,603

11,603

11,603

Other reserves


(606)

(668)

(643)

Retained earnings


3,738

3,100

4,177



_______

_______

_______

TOTAL EQUITY


15,800

15,100

16,202

 



 

Group statement of cash flows


6 months to

30 June 2020

6 months to

30 June 2019

Year to

December 2019


$'000

$'000

$'000


(unaudited)

(unaudited)

(audited)

Cash flows from operating activities




Profit/(loss) for the period

(439)

(258)

814

Adjustments for:




Income tax expense/(credit) recognised in profit or loss

45

(4)

194

Finance income

(37)

(20)

(54)

Finance costs

87

85

160

Depreciation of tangible non-current assets

135

132

188

Amortisation of intangible non-current assets

993

809

1,726

Fair value adjustment on contingent consideration

(149)

-

(236)

Share-based payments

27

49

52

Foreign exchange (gains)/losses

6

(6)

(8)


_______

_______

_______

Operating cash flows before movements in working capital

668

787

2,836

(Increase)/decrease in trade and other receivables

416

(402)

(1,509)

(Increase)/decrease in contract assets

122

(38)

(428)

Increase/(decrease) in trade and other payables

386

(230)

103

Increase in contract liabilities and other deferred income

(413)

220

701


_______

_______

_______

Cash generated from operating activities

1,179

337

1,703





Income tax paid

(110)

(96)

(334)


_______

_______

_______

Net cash generated from operating activities

1,069

241

1,369





Cash flows from investing activities




Development of intangible assets

(1,210)

(1,111)

(2,102)

Purchase of intangible assets

(3)

(12)

(35)

Acquisition of property, plant and equipment

(791)

(78)

(256)


_______

_______

_______

Net cash used in investing activities

(2,004)

(1,201)

(2,393)





Cash flows from financing activities




Proceeds from borrowings

1,117

276

317

Repayment of borrowings

(301)

(300)

(313)

Repayments of principal on lease liabilities

(93)

(88)

(171)

Finance income

37

20

54

Finance costs

(61)

(40)

(93)

Less interest accrued but not paid

16

1

-

Interest expense on lease liabilities

(8)

(22)

(40)


_______

_______

_______

Net cash generated by/(used in) financing activities

707

(153)

(246)





Net increase/(decrease) in cash and cash equivalents

(228)

(1,113)

(1,270)

Net foreign exchange differences

(43)

7

(20)

Cash and cash equivalents at beginning of period

934

2,224

2,224


_______

_______

_______

Cash and cash equivalents at end of period

663

1,118

934





Comprising:




Cash at bank and in hand

749

1,118

1,101

Overdraft

(86)

-

(167)


_______

_______

_______


663

1,118

934

 

 

 

Group statement of changes in equity


Share capital

Share premium

Exchange reserve

Merger reserve

Share-based payments reserve

Retained profits


Total


$'000

$'000

$'000

$'000

$'000

$'000


$'000

Balance at 31 December 2018 as previously reported

1,065

11,603

(193)

(527)

-

3,414


15,362

Effect of change of accounting policy (IFRS 16)

-

-

-

-

-

(51)


(51)


_____

_____

_____

_____

_____

_____


_____

Balance at 31 December 2018 as restated

1,065

11,603

(193)

(527)

-

3,363


15,311

(Loss) after taxation for the period

-

-

-

-

-

(258)


(258)

Share-based payments

-

-

-

-

49

-


49

Other comprehensive income:









Exchange differences

-

-

4

-

-

-


4


_____

_____

_____

_____

_____

_____


_____

Balance at 30 June 2019

1,065

11,603

(189)

(527)

49

3,105


15,106

Profit after taxation for the period

-

-

-

-

-

1,072


1,072

Share-based payments

-

-

-

-

51

-


51

Other comprehensive income:









Exchange differences

-

-

(27)

-

-

-


(27)


_____

_____

_____

_____

_____

_____


_____

Balance at 31 December 2019

1,065

11,603

(216)

(527)

100

4,177


16,202

Profit after taxation for the period

-

-

-

-

-

(439)


(439)

Share-based payments

-

-

-

-

50 

-


50

Other comprehensive income:









Exchange differences

-

-

(13)

-

-

-


(13)


_____

_____

_____

_____

_____

_____


_____

Balance at 30 June 2020

1,065

11,603

(229)

(527)

150

3,738


15,800

 



Notes to the Group financial statements

 

 

1              Basis of preparation

 

The Group has prepared its interim financial statements for the 6 months ended 30 June 2020 (the "interim results") in accordance with the recognition and measurement principles of International Financial Reporting Standards ("IFRS") as adopted by the European Union and also in accordance with the recognition and measurement principles of IFRS issued by the International Accounting Standards Board, but do not include all the disclosures that would otherwise be required. They have been prepared under the historical cost convention as modified to include the revaluation of certain non-current assets. The accounting policies adopted in the interim financial statements are consistent with those adopted in the Group's Annual Report and Financial Statements for the year ended 31 December 2019 and those which will be adopted in the preparation of the annual report for the year ending 31 December 2020.

 

As permitted, the interim results have been prepared in accordance with the AIM Rules of the London Stock Exchange and not in accordance with IAS34 Interim Financial Reporting. They do not constitute full statutory accounts within the meaning of section 434 of the Companies Act 2006 and are unaudited.

 

Going concern

 

The Directors have considered trading and cash flow forecasts prepared for the Group, and based on these, and confirmed banking facilities, are satisfied that the Group will continue to be able to meet its liabilities as they fall due for at least one year from the date of these results. On this basis, they consider it appropriate to have adopted the going concern basis in the preparation of the interim results, which were approved by the Board of Directors on 28 September 2020.

 

 

Comparative financial information

 

The comparative financial information presented herein for the year ended 31 December 2019 does not constitute full statutory accounts for that period. Statutory accounts for the year ended 31 December 2019 have been filed with the Registrar of Companies. These statutory accounts carried an unqualified Auditor's Report, did not draw attention to any matters by way of emphasis and did not contain a statement under Section 498(2) or 498(3) of the Companies Act 2006.

 

 



 

2              Segmental analysis

 

Revenue by type


6 months to

30 June 2020

6 months to

30 June 2019

Year to

31 December 2019


$'000

$'000

$'000


(unaudited)

(unaudited)

(audited)





Repeat software sales and services

1,148

1,316

3,114

Maintenance and support

719

645

1,399


_______

_______

_______

Total repeat revenues

1,867

1,961

4,513

Software - new licenses

424

498

1,887

Consulting

-

250

258

Resale of hardware

-

5

9


_______

_______

_______


2,291

2,714

6,667

 

Revenue by geography

 

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


6 months to

30 June 2020

6 months to

30 June 2019

Year to

31 December 2019


$'000

$'000

$'000


(unaudited)

(unaudited)

(audited)





Caribbean

60

243

133

Central Asia

32

206

256

Eastern Europe

74

56

91

North Africa

42

95

135

South Asia

923

1,088

1,791

South East Asia

1,160

561

4,181

Sub-Saharan Africa

-

465

80


_______

_______

_______


2,291

2,714

6,667

 

 

3              Non-GAAP profit measures and exceptional items

 

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


6 months to

30 June 2020

6 months to

30 June 2019

Year to

31 December 2019


$'000

$'000

$'000


(unaudited)

(unaudited)

(audited)

Operating profit/(loss)

(334)

(197)

1,118

Adjusted for:




 - amortisation and depreciation

1,091

940

1,915

 - revenue recognised as interest under IFRS 15

22

14

43

Exceptional items:




- gain on adjustment of deferred consideration liability

(149)

-

(236)

Share-based payments

27

49

52


_______

_______

_______

Adjusted EBITDA

657

806

2,892

 

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

 

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

 

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

 

Elements of depreciation on right-to-use assets recognised under IFRS 16 and share-based payment expense are deemed to be directly attributable overheads for the purposes of capitalising relevant expenditure on developing intangible assets (see Note 18). The figures above are shown net of amounts so capitalised.

 

 

4              Finance income


6 months to

30 June 2020

6 months to

30 June 2019

Year to

31 December 2019


$'000

$'000

$'000


(unaudited)

(unaudited)

(audited)

Interest receivable on interest-bearing deposits

15

6

11

Notional interest accruing on contracts with a significant financing component

22

14

43


_______

_______

_______

Total finance income

37

20

54

 

 

5              Finance expense

 


6 months to

30 June 2020

6 months to

30 June 2019

Year to

31 December 2019


$'000

$'000

$'000


(unaudited)

(unaudited)

(audited)





Interest and finance charges paid or payable on borrowings

79

40

96

Interest on lease liabilities under IFRS 16

15

22

40

Less: amounts capitalised as intangible assets

(7)

-

(19)

Acquisition-related financing expense - unwinding of discount on financial liabilities

19

23

47


_______

_______

_______

Total finance expense

106

85

164

 

 



 

6              Earnings per share

 

Earnings per share - reported ("EPS")

 

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

 


6 months to

30 June 2020

6 months to

30 June 2019

Year to

31 December 2019


$'000

$'000

$'000

Earnings




Earnings for the purposes of basic and diluted earnings per share being net profit attributable to equity holders of the parent

(439)

(258)

814





Number of shares




Weighted average number of ordinary shares for the purposes of basic and diluted earnings per share

32,532,431

32,532,431

32,532,431

 

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

 

Adjusted earnings per share

 

Adjusted EPS is calculated as follows:


6 months to

30 June 2020

6 months to

30 June 2019

Year to

31 December 2019


$'000

$'000

$'000

Earnings attributable to owners of the Parent

(439)

(258)

814

Adjusting items:




- amortisation of acquisition-related intangibles

343

349

686

- finance charge on liabilities relating to

 contingent consideration

19

23

47

 - exceptional items

(149)

-

(236)

- share-based payments

27

49

52

- prior year adjustments to tax charge

-

-

(7)


_______

_______

_______

Adjusted earnings attributable to owners of the Parent

(199)

163

1,356





Adjusted earnings per share attributable to shareholders (basic)

(0.6)¢

0.5¢

4.2¢





Weighted number of ordinary shares in issue

32,532,431

32,532,431

32,532,431

Effect of dilutive potential ordinary shares:




 - in-the-money share options

-

6,702

-


________

________

________

Weighted average number of ordinary shares for the purposes of diluted earnings per share

32,532,431

32,539,133

32,532,431





Adjusted earnings per share attributable to shareholders (diluted)

(0.6)¢

0.5¢

4.2¢

 

The criteria for inclusion of adjusting items in the calculation of adjusted EPS are the same as those relating to the calculation of adjusted EBITDA as set out in Note 3. Additionally, finance expense on liabilities relating to contingent consideration are non-cash costs reflecting the time value of money in arriving at the fair value of such liabilities and the effluxion of time over the period for which they are outstanding; and amortisation of acquisition-related intangibles relates to the amortisation of intangible assets in respect of customer relationships and brands which are recognised on a business combination and are non-cash in nature.

 

The Group has one category of potentially dilutive ordinary share, being those share options granted to employees where the exercise price (plus the remaining expected charge to profit under IFRS 2) is less than the average price of the Company's ordinary shares during the period. The weighted average number of shares for the calculation of diluted earnings per share is computed using the treasury share method.

 

 

7              Intangible assets

 

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

 


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

1,232

3

-

-

-

1,235

Foreign exchange

-

(2)

-

-

-

(2)


_______

_______

_______

_______

_______

_______

At 30 June 2020

7,623

109

23

6,862

470

15,087








Amortisation or impairment







At 1 January 2020

(1,957)

(34)

-

(972)

-

(2,963)

Charge for the period

(640)

(10)

-

(343)

-

(993)

Foreign exchange

-

1


-

-

1


_______

_______

_______

_______

_______

_______

At 30 June 2020

(2,597)

(43)

-

(1,315)

-

(3,955)








Net carrying amount







At 30 June 2020

5,026

66

23

5,547

470

11,132








At 1 January 2020

4,434

74

23

5,890

470

10,891

 

 



 

8              Tangible assets

 


Leasehold improvements

Computer equipment

Office equipment

Vehicles

 

Total


$'000

$'000

$'000

$'000

$'000

Cost






At 1 January 2020

109

197

59

312

677

Additions

2

788

1

-

791

Foreign exchange differences

(4)

(14)

(4)

(17)

(39)


_______

_______

_______

_______

_______

At 30 June 2020

107

971

56

295

1,429







Depreciation






At 1 January 2020

(7)

(87)

(9)

(59)

(162)

Charge for the year

(6)

(26)

(6)

(18)

(56)

Foreign exchange differences

-

4

1

4

9


_______

_______

_______

_______

_______

At 30 June 2020

(13)

(109)

(14)

(73)

(209)







Net carrying amount






At 30 June 2020

94

862

42

222

1,220







At 1 January 2020

102

110

50

253

515

 

 

9              Right-of-use assets

 

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

 


Office

buildings

Vehicles

Total


$'000

$'000

$'000

Cost




At 1 January 2020

690

31

721

Additions in the period

-

-

-

Effects of foreign exchange movements

(44)

(2)

(46)


_______

_______

_______

At 30 June 2020

646

29

675





Depreciation




At 1 January 2020

(368)

(14)

(382)

Charge for the period

(71)

(7)

(78)

Effects of foreign exchange movements

24

1

25


_______

_______

_______

At 30 June 2020

(415)

(20)

(435)





Net carrying amount




At 30 June 2020

231

9

240

At 1 January 2020

322

17

339

 

 



 

10           Loans and borrowings


As at

30 June 2020

As at

30 June 2019

As at 31 December 2019


$'000

$'000

$'000

Non-current liabilities




Secured term loans

1,145

359

362


_______

_______

_______


1,145

359

362

Current liabilities




Current portion of term loans

62

73

79

Unsecured borrowings

86

-

167


_______

_______

_______


148

73

246





Total loans and borrowings

1,293

432

608

 

 

11           Lease liabilities

 

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

 

Amounts due in less than one year

Office

buildings

Vehicles

Total


$'000

$'000

$'000

At 1 January 2020

193

12

205

Leases taken on in the period

-

-

-

Repayments of principal

(87)

(6)

(93)

Transfer from long-term to short-term

73

1

74

Effects of foreign exchange movements

(14)

(1)

(15)


_______

_______

_______

At 30 June 2020

165

6

171

 

 

Amounts due in more than one year

Office

buildings

Vehicles

Total


$'000

$'000

$'000

At 1 January 2020

186

1

187

Leases taken on in the period

-

-

-

Transfer from long-term to short-term

(73)

(1)

(74)

Effects of foreign exchange movements

(9)

-

(9)


_______

_______

_______

At 30 June 2020

104

-

104

 

 

 



 

12           Trade and other payables


As at

30 June 2020

As at

30 June 2019

As at 31 December 2019


$'000

$'000

$'000

Due within a year




Trade payables

40

12

82

Other payables and provisions

852

344

441


_______

_______

_______

Total trade and other payables

892

356

523

 

Other payables includes amounts due in respect of the capital expenditure referenced in Note 8, which was paid in July as per the agreed payment milestones. Provisions reflect payment holidays granted (principally in the Group's Indian subsidiary) in respect of certain duties and taxes.

 

 

13           Other financial liabilities

 

Other financial liabilities comprise the fair value of payments due in respect of earnout payments resulting from the Danateq acquisition.


As at

30 June 2020

As at

30 June 2019

As at 31 December 2019


$'000

$'000

$'000

Contingent consideration on the acquisition of Danateq assets




- potentially due within one year

801

-

948

- potentially after one year

-

1,187

-


_______

_______

_______

Total other financial liabilities

801

1,187

948

 

The amount owed to the vendors of Danateq had been agreed at $1m gross under the terms of the SPA. The net figure (paid earlier this month) was some $193,000 lower, being reduced by sums relating either to amounts paid by customers in advance to the former Danateq business but due to Pelatro, or amounts deductible under the terms of the SPA due to differences in outturn in disclosure items. The difference between the reporting date figure and the net payout is the imputed discount due to the time value of money.

 

 

14           Post balance sheet events

 

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

 

 

 

 [END]

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