TIDMDXSP
DXS INTERNATIONAL PLC
ANNUAL RESULTS
for the year ended 30 April 2021
The Board of DXS International plc ("the Company"), the AQSE
Growth Market quoted healthcare information and digital clinical
decision support systems provider, is pleased to announce its
audited Final Results for the year ended 30 April 2021.
Financial Highlights
-- Turnover increased by 10% to GBP3,605,766 (2020: GBP3,279,787). In spite
of the unprecedented interruption to business during the financial year,
revenue increased by GBP325,979. This is attributed to an increase in
both NHS and Pharmaceutical sales revenue supplemented by a one off
contribution of GBP100,323 for the EU Hypertension initiative.
-- Operating Profit GBP288,016 (2020: GBP304,025).
-- Profit after tax is GBP496,913, compared to GBP428,502 in the previous
year, an increase of 16%.
-- Cash at bank GBP792,318 (2020: GBP1,010,645).
-- Over GBP1.5m invested in R&D during the period.
Operational Highlights
-- We have completed 14 ExpertCare Hypertension pilots. Data from these
pilots has reinforced the need for a solution such as ExpertCare which
can significantly contribute towards a higher percentage of Hypertensive
patients being treated in compliance with NICE, best evidence treatment
guidelines, resulting in reduced incidents of heart attacks and strokes
and saving the NHS and healthcare providers money.
-- The Company received CE accreditation as a Class 1A device for the
Hypertension solution and also ISO accreditation for the Company.
-- Our CompleteCare Templates and Toolkits are generating positive interest
among GP practices as a solution to helping to manage the significant
backlog of "business as usual".
-- DXS is starting to look more internationally to other markets where our
products could have a positive impact.
Post Period Highlights
-- The ExpertCare Hypertension solution achieved accreditation for the new
NHS Digital Framework, GPIT Futures. This provides the ability for
potential ExpertCare customers to have the Hypertension solution funded
from a central NHS fund.
-- The CompleteCare team has reacted to the current enormous primary care
backlog for care reviews and treatment and created specialised tools to
help clinicians expedite the management of long term conditions such as
cancer and learning disability.
-- Trading for the first three months is on a par with the previous year but
is expected to show growth as the COVID situation normalises and we are
able to begin to realise revenue growth with our new solutions.
David Immelman, Chief Executive of DXS commented:
"Although the COVID situation has continued to delay commercial
operations for our suite of new solutions, ExpertCare, MyVytalCare
and CompleteCare, the time has been used to redirect resources into
ongoing R&D. These initiatives are expected to begin reaping
rewards early in 2022. We have also started looking at more of an
overseas approach to our products and explore different healthcare
systems in various countries to see how DXS's solutions could be
applied across the world.
We remain focused on our overall strategy of building
significant revenue over the next 4-5 years through our Expert
Long-Term Care solutions into which we have been heavily investing
for the past 5 years. We remain confident and optimistic about the
future growth of the business and this is supported by our own
organic investment into increased development of GBP1,529,762
during the year."
The Directors of DXS International plc accept responsibility for
this announcement.
Contacts :
David Immelman 01252 719800
DXS International plc
www.dxs-systems.com
AQSE Corporate Broker
Hybridan LLP 020 3764 2341
Claire Louise Noyce
Corporate Advisor
City & Merchant 020 7101 7676
David Papworth
Notes to Editors
About DXS:
DXS International presents up to date treatment guidelines and
recommendations, from Clinical Commissioning Groups and other
trusted NHS sources, to doctors, nurses and pharmacists in their
workflow and during the patient consultation. This effective
clinical decision support ultimately translates to improved
healthcare outcomes delivered more cost effectively and which
should significantly contribute towards the NHS achieving its
projected efficiency savings.
The following information is extracted from the DXS
International plc audited accounts for the year ended 30 April
2021.
Report of the Directors
The directors present their annual report and the audited
financial statements for the year ended 30 April 2021. The
Chairman's statement which is included in this report includes a
review of the achievements of the Company, the trading performance,
financial position and trading prospects.
DIRECTORS
The directors for the year were:
-- Bob Sutcliffe -- Chairman
-- David Immelman -- CEO
-- Steven Bauer -- COO
PRINCIPAL ACTIVITIES
The group's principal activities during the period were the
development and distribution of clinical decision support to
General Practitioners, Nurses and Retail Pharmacies in the United
Kingdom. The commercial side included the licensing of DXS to
various Clinical Commissioning Groups (CCGs) and the sale of
e-detailing opportunities to the Pharmaceutical Industry.
The group continues to invest in research and development both
locally and internationally and during this financial year has
invested GBP1,529,762 into R&D for the introduction,
continuation and completion of a number of new DXS solutions. These
are mainly targeted at providing clinicians and patients with
solutions to long term conditions. These products are aligned with
the NHS strategy of "Connected Care" and the hypertension solution,
ExpertCare, and the specialised template and toolkit solution,
CompleteCare, while delayed due to COVID-19, are market ready.
During the period we repaid GBP117,164 on bank and personal
loans.
FINANCIAL INSTRUMENTS
The Directors believe that there is no material risk arising in
respect of interest rates on loans, credit and liquidity.
DIVID
The Directors do not recommend a dividend.
DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the financial
statements for each financial year. The directors have elected to
prepare the financial statements in accordance with United Kingdom
Generally Accepted Accounting Practice (United Kingdom Accounting
Standards and applicable law). Under company law the directors must
not approve the financial statements unless they are satisfied that
they give a true and fair view of the state of affairs of the
Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the directors are required
to:
-- Select suitable accounting policies and apply them consistently.
-- Make judgments and accounting estimates that are reasonable and prudent.
-- State whether UK accounting principles have been followed subject to any
material departures disclosed and explained in the financial statements
and,
-- Prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the Company will continue in the business.
The directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Company's
transactions and disclose with reasonable accuracy at any time the
financial position of the Company and enable them to ensure that
the financial statements comply with the Companies Act 2006. They
are also responsible for safeguarding the assets of the Company and
hence for taking reasonable steps for the prevention and detection
of fraud and other irregularities.
DIRECTORS' RESPONSIBILITIES TO AUDITORS
The directors have taken all the necessary steps that they ought
to have taken as directors in order to make themselves aware of all
relevant audit information and to establish that the Company's
auditors are aware of that information.
So far as the directors are aware, there is no relevant audit
information of which the Company's auditor is unaware.
Approved by the board and signed on its behalf by:
DA Immelman
Director
4 August 2021
Strategic Report
SECTION 172 REPORT
Section 172 of the Companies Act requires that a director of the
Company is managing in the best interests of all stakeholders --
Customers, Employees and Shareholders.
In the spirit of above, the Directors of DXS International plc,
strive to maintain a reputation for high but fair standards in the
best interest of its stakeholders.
Our primary focus is on our customers and here we regard our
relationships and channels of communications of paramount
importance. We operate in a sensitive environment, healthcare, and
as such ensure that we meet all the standards required by our
customers, such as Information Governance and Clinical Safety. In
addition, we comply with ISO standards which assures an overarching
good governance approach to all operations.
The Board is focused on delivering value for Shareholders
underpinned by motivated Employees delivering above average
delivery of solutions and service to Customers. In achieving the
foregoing, the Company focuses on continued innovation via a policy
of research and development funded through organic investment plus
capital raises, as agreed at shareholder meetings, noting it has
not as a Company raised any external equity financing in the year
to April 2021, and supported by clearly communicated vision and
direction.
In our communication to Shareholders the Board is clear in terms
of its short, medium and long-term strategy and maintains an
open-door approach to Shareholders seeking additional clarity on
any issue. The Board release notices on a regular basis informing
Shareholders of developments in areas of business progress,
non-confidential strategic decisions and any change to company
policy. Risks and opportunities are set out in this strategic
review.
The Group is small and while clear management structures are in
place all Employees, if required, have direct access to the
Executive Directors on a daily basis and, if necessary, to the
Chairman. The group retains HR services to ensure the fair and
equitable treatment of Employees. The Company promotes a policy of
promoting from within supported by training and mentorship. We
encourage diverse thinking and recognise strengths and contribution
to the business.
REVIEW OF THE GROUP'S BUSINESS
The Group Profit after Tax is GBP496,913 (2020 - GBP428,502).
The Operating Profit amounts to GBP288,016 (2020 - GBP304,025).
This decrease was largely due to an increase in depreciation of
GBP409,121. The Group has a credit of GBP243,240 for UK Corporation
Tax (2020 credit- GBP189,195) for the year.
The profit after tax for the year increased by GBP68,411 after a
significant investment into R&D of GBP1,529,762. Considering
the overall impact of COVID-19, revenue remained robust with an
increase of 16% in revenue.
Being an accredited NHS solutions provider, DXS has
well-established business continuity and disaster recovery
protocols in place. These were triggered during the early stages of
the COVID-19 outbreak and at this point, all our staff with the
exception of one, both in the United Kingdom and South Africa are
successfully working from home and the Company remains fully
operational.
The expected revenue increase due to increased pricing as a
result of GPITF accreditation has not materialised as expected due
to operational NHS delays. These may be expected to become
effective in April 2022.
On the upside, one of our new solutions, ExpertCare Hypertension
has received GPIT Futures accreditation.
We have utilised the delays in commercialisation caused by COVID
to add certain enhancements to our Expert solutions namely
ExpertCare and CompleteCare which we believe will increase the
attractiveness of our offering and pricing in our favour once the
market reopens for business as usual.
Our strategy remains aligned with both the new NHS Long Term
Plan and opportunities abroad.
PRINCIPAL RISKS AND UNCERTAINTIES
The principal risk to the Company in the UK is that the NHS
dramatically changes its plans or cuts its budgets. This seems
unlikely, particularly with the current pandemic highlighting the
need for clinicians to operate using digital technologies. We are
also confident that our new Hypertension solution can play a
significant role in assisting already overloaded clinicians to
manage patient backlogs as the situation begins to normalise.
Failure to achieve predicted quantities of DXS contracts, and
slower development of additional revenue streams may result in
revenues growing more slowly than anticipated. These may be
mitigated due to the launch of market ready new products once the
current situation normalises.
While the country is moving to the easing of restrictions, the
impact of COVID-19 on business going forward remains uncertain and
can impact the GPIT Futures accreditation of our new solutions as
well as a slower than anticipated access to market of our new
Hypertension solution.
In addition, our plans for expansion outside of the UK mitigate
this risk. Here we continue with our research and development plans
to take our new Expert Hypertension solution into international
markets where improved management of Hypertension and other long
term conditions are a top priority.
ANALYSIS OF BUSINESS DURING YEARING APRIL 2021
Revenue was above expectations increasing by GBP325,979 while
Operating Profit decreased marginally by GBP16,009. Increased
revenue was attributable to increases in business-as-usual revenue
supplemented by GBP110,323 from an EU hypertension sale.
FINANCIAL KPI
-- Group Revenue of GBP3,605,766 has increased by 10%. Definition: Total
Group sales including distribution of clinical decision support to
General Practitioners and the licensing of DXS to CCGs and healthcare
publishers. Group Revenue includes the sale of medicine education slots
to the pharmaceutical industry.
-- Underlying Group Profit after Tax was GBP496,913, a 16% increase. This
was mainly due to an increased Tax credit realised by increased
investment in R&D for the period. Definition: Underlying profit provides
information on the underlying performance of the business.
-- Depreciation and amortisation of deferred Research and Development
expenditure in 2021 was GBP980,683 and in 2020 was GBP571,562.
-- Earnings Per Share 2021 1.0p, 2020 1.1p. Definition: Earnings per share
is the underlying profit divided by the weighted average number of
ordinary shares in issue.
-- ROE 2021 12 %, 2020 12%. Definition: Return on Equity (ROE) is the ratio
of net profit of a company to its shareholders funds. It measures the
profitability of a company by expressing its net profit as a percentage
of its shareholders funds which include share capital, share premium,
provision for costs of share option awards and retained earnings
CORPORATE GOVERNANCE
We are committed to establish, maintain, and continually improve
an Integrated Management System (IMS) that conforms to ISO
22301:2012, ISO 20000-1:2018 and ISO 27001:2013 requirements.
To achieve this objective, we commit to:
-- continual improvement in our performance and services to our
stakeholders.
-- Identify, assess, reduce, and eliminate hazards and risks pertaining to
our business.
-- Setting risk-based objectives and targets to meet applicable statutory,
business, information security and service level obligations.
-- Comply with mutually agreed quality and service level requirements of our
customers
-- Develop our people and provide sufficient resources to meet our
objectives and targets.
We communicate the IMS Policy to all personnel working for or on
behalf of DXS to ensure that they are made aware of their
individual IMS obligations.
Approved by the board and signed on its behalf by:
D Immelman
Director
4 August 2021
FINANCIAL STATEMENTS
INCOME STATEMENT
Year ended 30 April 2021
2021 2020
Continuing Operations Continuing Operations
GBP GBP
Turnover 3,605,766 3,279,787
Cost of Sales (419,757) (318,424)
_________ _________
Gross Profit 3,186,009 2,961,363
Administration Costs (1,917,310) (2,085,776)
Depreciation and Amortisation (980,683) (571,562)
_________ _________
Operating profit 288,016 304,025
Interest received and similar
income - 4,398
Sundry income 9,539 -
_________ _________
297,555 308,423
Interest payable and similar
expenses (43,882) (69,116)
_________ _________
Profit on ordinary activities
before taxation 253,673 239,307
Tax on profit on ordinary
activities 243,240 189,195
_________ _________
Profit for the year 496,913 428,502
========= =========
Profit per share
1.0p 1.1p
-- basic
1.0p 1.1p
-- fully diluted
========= =========
Statement of Other Comprehensive Income
Year ended 30 April 2021
2021 2020
GBP GBP
Profit for the year 496,913 428,502
Other comprehensive income - -
Tax on components of other comprehensive
income - -
_________ _________
Total comprehensive income for
the year 496,913 428,502
========= =========
Statement of Financial Position
Year ended 30 April 2021
Company Company
Group 2021 Group 2020 2021 2020
GBP GBP GBP
Fixed Assets
Intangible Assets 4,557,969 4,007,411 - -
Tangible Assets 1,333 1,105 - -
Investments - - 2,348,899 2,010,500
_________ _________ _________ _________
4,559,302 4,008,516 2,348,899 2,010,500
_________ _________ _________ _________
Current assets
Debtors: amounts falling due
within one year 850,258 759,405 43,471 91,051
Cash at bank and in hand 792,318 1,010,645 642,377 911,854
_________ _________ _________ _________
1,642,576 1,770,050 685,848 1,002,905
Creditors: amounts falling due
within one year (951,673) (1,180,704) (38,227) (37,360)
_________ _________ _________ _________
Net current assets 690,903 589,346 647,621 965,545
_________ _________ _________ _________
Total assets less current
liabilities 5,250,205 4,597,862 2,996,520 2,976,045
Creditors:
Amounts falling due after more
than one year (449,125) (376,289) - -
Deferred income (653,688) (571,094) - -
_________ _________ _________ _________
4,147,392 3,650,479 2,996,520 2,976,045
========= ========= ========= =========
Capital and reserves
Called up share capital 159,246 159,246 159,246 159,246
Share Premium 2,676,321 2,676,321 2,676,321 2,676,321
Share option reserve 173,808 173,808 173,808 173,808
Retained earnings 1,138,017 641,104 (12,855) (33,330)
_________ _________ _________ _________
Shareholders' funds 4,147,392 3,650,479 2,996,520 2,976,045
========= ========= ========= =========
As permitted by Section 408 of the Companies Act 2006, the
Income Statement of the parent company is not presented as part of
these financial statements. The Company made a profit of GBP20,475
(2020 - GBP80,099) for the year.
The financial statements were approved and authorized for issue
by the Board on 4 August 2021.
D Immelman R Sutcliffe
Director Director
Company Registration number : 06311313
STATEMENT OF CASH FLOWS
Year ended 30 April 2021
Group Group
2021 2020
GBP GBP
Cash flow from operating activities 1,088,409 777,709
Interest paid (43,882) (69,116)
Interest received - 4,398
Sundry Income 9,539 -
R&D tax credit received 186,240 257,195
_________ _________
Net cash flow from operating
activities 1,240,306 970,186
_________ _________
Cash flow from investing activities
Payments to acquire intangible
fixed assets (1,529,762) (904,503)
Payments to acquire tangible
fixed assets (1,707) -
Disposal of fixed tangible assets - 626
_________ _________
(1,531,469) (903,877)
_________ _________
Financing Activities -
Net Proceeds on issue of shares - 978,397
Repayment of long term loans (117,164) (89,303)
Advance of long term loans 190,000 -
_________ _________
72,836 889,094
_________ _________
Net (decrease)/ increase in cash
and cash equivalents (218,327) 955,403
Cash and Cash equivalents at
1 May 2020 1,010,645 55,242
_________ _________
Cash and Cash equivalents at
30 April 2021 792,318 1,010,645
========= =========
Cash and Cash equivalents consists
of:
Cash at bank and in hand 792,318 1,010,645
========= =========
Current Non Current
Net Debt Reconciliation Debt Debt Cash Total
GBP GBP GBP GBP
At 30 April 2019 (665,212) (464,951) 55,242 (1,074,921)
Cash Flow 244,440 89,303 955,403 1,289,146
Transfer from Current to Non
Current Debt 641 (641) - -
_________ _________ ________ _________
At 30 April 2020 (207,139) (449.125) 792,318 136,054
========= ========= ========= =========
Notes to the Financial Statements
Year ended 30 April 2021
1 Summary of significant accounting policies
(a) General information and basis of preparation.
DXS International PLC is a public company limited by shares
incorporated in England and Wales. The address of the registered
office is given in the Company information on Page 1 of these
financial statements.
The group's principal activities during the year were the
development and distribution of clinical decision support to
General Practitioners, Nurses and Retail Pharmacies in the United
Kingdom and South Africa. The commercial side includes the
licensing of DXS products to various CCG's (Central Commissioning
Groups), the sale of e- detailing opportunities to the
pharmaceutical industry, the UK Primary Care sector and the
licencing of DXS technology to healthcare publishers.
The financial statements have been prepared in accordance with
applicable accounting standards including Financial Reporting
Standard 102 Applicable in the UK and Republic of Ireland (FRS 102)
and the Companies Act 2006. The financial statements have been
prepared on a going concern basis under the historical cost
convention. The financial statements are prepared in sterling which
is the functional currency of the Company.
In the opinion of the Directors the group has sufficient funding
to continue as a going concern for at least twelve months from the
date of approval of the financial statements.
Should the group be unable to continue trading, adjustments
would have to be made to reduce the value of assets to their
recoverable amounts and to provide for any further liabilities that
might arise. The financial statements do not reflect any such
adjustments.
The significant accounting policies applied in the preparation
of these financial statements are set out below. These policies
have been consistently applied to all years presented unless
otherwise stated.
(b) Intangible assets
Intangible assets acquired separately from a business are
capitalised at cost. Research and development expenditure, other
than specific identifiable development expenditure, is written off
against profits in the year in which it is incurred.
Identifiable development expenditure is capitalised to the
extent that the technical, commercial and financial feasibility can
be demonstrated. Developed products are for use within the NHS and
other medical institutions within both the UK and internationally.
The Group is already a supplier of services to the NHS.
Goodwill arising on business combinations is capitalised,
classed as an asset on the balance sheet and amortised over its
useful life. The period originally chosen for writing off the
current goodwill was 20 years because the directors believed that
this was the period of time for the benefit to be received. The
Directors reviewed the anticipated future life of the goodwill
during 2020. It was considered that the anticipated future life of
the goodwill would not exceed 3 years from 1 May 2020.
Accordingly the Net Book Value of the goodwill at 30 April 2020
is being amortised over 3 years. Intangible assets are amortised
over a straight line basis over their useful lives. The useful
lives of intangible assets are as follows:
Intangible type Useful life Reasons
Development 5 years form the date Period of time for benefit
expenditure that the specific product to be received
is completed and available
for distribution
Provision is made for any impairment.
(c) Tangible fixed assets
The Company capitalises items purchased as Tangible Fixed Assets
which have a cost in excess of GBP500.
Tangible fixed assets are stated at cost less accumulated
depreciation.
Depreciation is provided on all tangible fixed assets at rates
calculated to write off the cost , less estimated residual value,
of each asset on a systematic basis over its expected useful life
as follows:
Plant and equipment 3-4 years straight line.
(d) Debtors and creditors receivable/ payable within one year
Debtors and creditors with no stated interest rate and
receivable or payable within one year are recorded at transaction
price. Any losses arising from impairment are recognised in the
profit and loss account in other administration expenses.
(e ) Loans and borrowings
Loans and borrowings are initially recognised at the transaction
price including transaction costs. Subsequently they are measured
at amortised cost using an effective interest rate method, less
impairment. If an arrangement constitutes a finance transaction it
is measured at present value.
(f) Grants
Government Grants, including non - monetary grants, shall not be
recognised until there is reasonable assurance that :
(a) the entity will comply with the conditions attached to them;
and
(b) the grants will be received.
An entity shall recognise grants either based on the performance
model or the accrual model. This policy choice shall be applied on
a class-by-class basis.
(g) Tax
Current tax represents the amount of tax payable or receivable
in respect of the taxable profit for the current or past reporting
periods. It is measured at the amount expected to be paid or
recovered using the tax rates and laws that have been enacted or
substantively enacted by the balance sheet date.
(h) Turnover and other income
Turnover is measured at the fair value of the consideration
received or receivable net of VAT and trade discounts. The policy
adopted for the recognition of turnover is as follows -
Sale of services
Turnover is from the sale of opportunities to the pharmaceutical
industry and the UK Primary Care sector and is recognised over the
term of service contract and is apportioned on a time basis
representing the delivery of the service.
(i) Foreign currency
Foreign currency transactions are initially recognised by
applying to the foreign currency amount the exchange rate between
the functional currency and the foreign currency at the date of the
transaction.
Monetary assets and liabilities denominated in a foreign
currency at the balance sheet date are translated using the closing
rate.
(j ) Employee benefits
When employees have rendered service to the Company, short term
employee benefits to which the employees are entitled are
recognised at the undiscounted amount expected to be paid in
exchange for that service.
The Company operates a defined contribution plan for the benefit
of its employees. Contributions are expensed as they become
payable.
(k) Leases
Rentals payable and receivable under operating leases are
charged to the profit and loss account on a straight line basis
over the period of the lease.
(l) Share option reserve policy
The Company recognised as an expense, the fair value of share
options granted over their vesting period. The fair value is
calculated by applying an option pricing model.
Factors affecting the model are expected volatility, exercise
price, weighted average share price, option life and risk free
interest rate. In respect of options granted by the Company -
- use of the Black Scholes calculator as the option pricing
model,
- calculated volatility using the Adam Greene Volatility method
using an average share price over the previous 104 weeks,
- the directors base their calculations on an option life of 2
years
(m) Key judgements and Key accounting estimates
There are no Key judgements or Key Accounting estimates with a
material effect on the carrying value of assets and
liabilities.
The Group has used a level of judgement around key assumptions
on the technical feasibility of products under development, the
consideration of the estimated useful lives of these products and a
degree of estimate in respect of the capitalised attributable
cost.
(n) Reduced disclosure
DXS International PLC meets the definition of a qualifying under
FRS 102 paragraph 1.12(b) and has therefore taken advantage of the
disclosure exemption in relation to the parent cash flow
statement.
(END) Dow Jones Newswires
August 16, 2021 02:00 ET (06:00 GMT)
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