TIDMAQSG

RNS Number : 6620U

Aquila Services Group PLC

27 November 2023

For immediate release

27 November 2023

Aquila Services Group plc

Unaudited Interim Results for the six months ended 30 September 2023

Aquila Services Group plc ("the Company"), is the holding company for Altair Consultancy and Advisory Services Ltd ("Altair"), Aquila Treasury and Finance Solutions Ltd ("ATFS") and Oaks Consultancy Ltd ("Oaks") which form the Group ("the Group").

The Group works in the UK and internationally. Its expertise is in the provision, financing and management of affordable housing by housing associations, local authorities, government agencies and other non-profit organisations, high level business advice to the property sector and support for organisations including multi-academy education trusts and sports foundations working in communities to improve health and well-being opportunities.

Results Highlights

 
                                      6 Months     6 months to        Year ended 
                                            to    30 Sept 2022          31 March 
                                  30 Sept 2023     (unaudited)    2023 (audited) 
                                   (unaudited) 
                                       GBP'000         GBP'000           GBP'000 
 Revenue                                 5,923           5,874            12,249 
 Gross profit                            1,039           1,078             2,605 
 Underlying Operating profit*               99             308               806 
 Profit after tax                           68             244               518 
 Earnings per share                      0.17p           0.61p             1.29p 
 Cash balances                           1,649           1,718             2,405 
 Total dividend payable                  0.25p           0.25p             0.75p 
 

* Underlying operating profit is calculated by adjusting the reported pre-tax profit for share-based payment charges and impairment of goodwill.

Dividend

The directors propose an interim dividend of 0.25p (2022: 0.25p). This will be paid on 20 December 2023 to shareholders on the register at 8 December 2023.

A copy of the interim results will be available from the Company's website: https://aquilaservicesgroup.co.uk/investor-information

This announcement includes inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR").

For further information please visit www.aquilaservicesgroup.co.uk or contact:

Aquila Services Group plc

Claire Banks

Claire.banks@aquilaservicesgrp.co.uk

Group Finance Director and Company Secretary

Tel: 020 7934 0175

Beaumont Cornish Limited, Financial Adviser

Roland Cornish / Asia Szusciak

corpfin@b-cornish.co.uk

Tel: 020 7628 3396

Chair's statement

Dear Shareholder,

I am pleased to present the half-yearly report and the interim results for the six months to 30 September 2023.

Aquila Services Group plc ("the Company") is the holding company for Altair Consultancy & Advisory Services Ltd ("Altair"), Aquila Treasury and Financial Solutions Ltd ("ATFS") and Oaks Consultancy Ltd ("Oaks") which form the Group ("the Group").

The group is an independent consultancy specializing in the provision, financing, and management of affordable housing by housing associations, local authorities, government agencies and other non-profit organisations. The Group also provides high level business advice to the commercial property sector and support for organisations including multi-academy education trusts, charities and sports foundations, working in communities to improve health and well-being opportunities.

The prospect for the half year was for the business to continue the growth achieved in the second half of the financial year ended 31 March 2023. Demand for the majority of our services in many of the sectors in which we operate has continued at a high level although the wait for government to set effective procedures for education to access capital allocations continues.

However, a number of factors have impacted on the profitability and to a lesser extent turnover in the first six months.

As mentioned at the year end, 'wage inflation and skills shortages are still a significant upward pressure on our cost base'. We have, like the majority of businesses, had to respond to these pressures and with the cost of living crisis continuing, the pressure on salaries has increased and these additional costs, as well as costs of recruitment and training, have reduced profitability in the first 6 months of this financial year.

Our consultants, particularly those with specific skills, are in high demand in the sector. This has led to pressures on retention and additional costs of recruitment and training. There is an interregnum before the new recruits are able to support the level of expertise required by our clients. We are beginning to see these pressures ease as the general recruitment market as well as the cost of living become less challenging. It is our expectation that it will be the next financial year before we can return to a position where there is stability between demand for our services and the resources that we have available.

The pressures on the property market and in particular the cross-subsidy provided to new affordable housing has impacted on our clients. To compensate, our development team have changed emphasis with consultants assisting with investment in existing housing stock with both turnover and profitability being affected during this transition.

The planned restructuring and investment in Oaks has taken longer than expected partially due to the difficulties experienced in the recruitment market. The restructuring is now largely completed but represented a significant additional cost in the first six months.

Looking forward we are now better positioned and resourced to meet the demands of a challenging market. New opportunities for the Group's services are emerging, particularly with our international work, and proposals for more diverse growth in both social and affordable housing. We do not expect that profitability in the second half will compensate for the shortfall in the first half but we confidently expect an improving position.

We are still conscious of the impact of the costs of having a full market quote on the London Stock Exchange and are continuing to examine ways the impact can be reduced with benefit to shareholders.

Turnover for the 6 months was GBP5,923k (GBP5,874k 6 months to September 2022; GBP12,249k 12 months to March 2023) and profit before tax, share option charges and impairment of goodwill of GBP99k (GBP308k September 2022, GBP806k March 2023).

The Group continues to have a strong balance sheet with no debt. As at 30 September 2023 net current assets were GBP2,856k (30 September 2022 GBP2,715k and 31 March 2023 GBP3,036k).

We are confident of achieving a significant profit for the full year and will therefore maintain the interim dividend at the previous level. The final dividend will be reviewed once we know the outcome for the full year. The interim dividend for the 6 months ended 30 September 2023 to be paid on 20 December 2023 to those shareholders on the register at 8 December 2023 will be 0.25p, (30 September 2022: 0.25p, 31 March 2023 0.5p).

We remain committed to the services that the Group offers to organisations and agencies working to provide the essential services that enhance the life opportunities of their communities. In an increasingly troubled world, finding the resources to maintain these objectives is the challenge, both to government and the many different sectors that make up our civil society. Our role in helping clients construct funding and delivery mechanisms to achieve these objectives is important. As always it is only from the commitment and expertise of all our staff that we can achieve these objectives. On behalf of the board we thank them for their efforts.

I look forward to reporting progress at the year end.

Derek Joseph - Chair

24 November 2023

The Management of the Group are pleased to present their report for the period ended 30 September 2023.

Aquila at a Glance

The Group continues to implement its business strategy to encompass all the professional consultancy services that the Group's client base demands. The Group now provides advice and support across the affordable housing, regeneration, sport, charity and education sectors. Its purpose is to assist organisations that benefit local communities such as housing associations, local authorities, government agencies, multi-academy trusts, charities, other non-profit organisations and those set up for community benefit, as well as providing related high-level business advice to the commercial property sector.

Business performance and position

Altair Consultancy and Advisory Services Ltd ("Altair")

Altair is a specialist management consultancy company that works with organisations that govern, manage, regulate or build housing. Operating within the UK and Europe, its international client base is increasing with continuing and new contracts in Africa and investment in expansion into Asia.

The services that Altair offers cover housing development and regeneration, property asset management, health and safety compliance and building safety advice, strategic financial advice, governance and risk management, executive and non-executive recruitment. Our digital, transformation and people services and our technical asset team are areas of continued significant investment and growth.

Clients contract with Altair on a fixed-fee basis, through retained contracts in our finance, governance and transformation business streams, and placements for members of the property team, and increasingly for our transformation team, at client sites.

Both the consulting and property businesses have seen income remain in-line with expectations this half year. Profitability has been affected by the cost-of-living crisis, recruitment and retention and the investment in our new service lines, Commercial and Procurement and Sustainability.

The impact of the macro-economic environment was most keenly felt within our property business, clients have begun to reduce their investment in new housing development and increase investment in their current housing stock. To mitigate this, where possible, colleagues are being redeployed into the technical and asset management teams which have an increasing workload.

The business is seeing opportunity on the work clients are undertaking in preparation for the implementation of the various new Bills that have gained Royal Assent in the last six months, specifically the new consumer regulations due to come into force in April 2024.

Management report

Aquila Treasury and Financial Solutions Ltd ("ATFS")

ATFS is a specialist treasury management consultancy authorised and regulated by the Financial Conduct Authority that operates across the UK and Europe. It provides advice on treasury policy and strategy, debt and capital market finance, banking and card merchant services, value for money, and financial market information services to local authorities, charities, housing associations, education bodies, private sector housing providers and government bodies.

Work is delivered through fixed price contracts as retained general treasury advisers and information subscription agreements. Specific advisory project contracts are on a fixed fee basis, won through competitive procurement tenders, payable on agreed project milestones.

The changes in personnel within ATFS last year has meant that the business has stabilised and, although the issues within education procurement continues, the treasury advice into the housing and international markets has seen an increase in the half year. This is expected to improve in the next half.

Oaks Consultancy Limited ("Oaks")

Oaks is a specialist sports, charity, statutory and education consultancy operating within the UK and Europe with an increasing international presence. Oaks' clients include national and international sports teams and governing bodies, national and international charities, statutory organisations and local authorities, multi academy trusts and teaching school alliances, housing associations and corporate businesses.

Oaks provides consultancy advice and guidance on strategy and business planning, organisational and cultural change programmes, impact measurement, together with implementation support in relation to income generation and diversification. Contracts are delivered through a mix of fixed-fee projects and retained contracts for general advisory services.

The agreed investment in Oaks was slower than anticipated and this has affected the results this half year. With two of the three planned sector leads now in-place the expectations are that the results in the second half will recover, although not to budgeted levels.

Investments

The Group continues to hold a 5.3% equity stake in AssetCore, a company building a financial debt management platform for the affordable housing sector.

Group-wide initiatives

ESG Group

The purpose of the ESG Group is to focus on the Environment, Social and Governance (ESG) agenda and to drive the agenda across the Group and its subsidiaries. This includes driving Aquila's approach to being a climate conscious organisation. During the year the Group retained its Carbon Neutral Plus status and to ensure all employees are treated fairly. The Group commit to training all employees on the importance of having an inclusive workforce.

Further information about, and activities within the groups, is available on the website.

Outlook

The outlook for the second half is positive. The housing and international markets continue to provide opportunities for the Group and the investment in the Sports, Chairty and Education sector should see an increase in contracts in the next period.

Retention and recruitment continue to be one of the major risks and there is a sharp focus on this by the leadership teams of each business within the Group. In addition, the Group remains focused on improving margins whilst retaining turnover growth.

Going concern basis

The Board updates its three-year business plan annually. This includes a review of the Company's cash flows and other key financial ratios over the period. These metrics are subject to sensitivity analysis which involves flexing a number of the main assumptions underlying the forecast, both individually and in unison. Where appropriate, this analysis is carried out to evaluate the potential impact of the Company's principal risks. The three-year review also makes certain assumptions about the normal level of capital investment likely to occur and considers whether additional financing facilities will be required.

The Group does not have any bank debt and remains in a strong cash position with balances at the end of September 2023 at GBP1.65m and net current assets at GBP2.86m.

The Directors continue to review the forecasts on a monthly basis applying stress tests to the reforecasts to ensure viability of the outputs. The Group continue to monitor cash balances, debtors and cash generation on a daily basis. Based on the results of these analyses, the Directors have a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due in the next twelve months and over the three-year period of their assessment.

Risks and uncertainties

The key risks and uncertainties relating to the Group's operations remain largely consistent with those disclosed in the Group's Annual Report and Accounts for the year ended 31 March 2023. These are listed below:

   --    Financial risk 
   --    Unfavourable economic conditions and/or changes to government policy 
   --    Competition 
   --    Staff skills, retention, recruitment and succession 
   --    Data governance 

The Group seeks to mitigate all these risks through ensuring that it monitors changes in statutory, regulatory and financial requirements and maintains good relationships with its clients, principal contacts within government, regulators and other key influencers within the sector. The Group is well placed to provide the full range of services needed by its clients as the external environment changes.

A detailed explanation of the risks relevant to the Group is on Page 20 of the Annual Report and Accounts for the year ended 31 March 2023 and is available on the Company's website at www.aquilaservicesgroup.co.uk .

Fiona Underwood - Executive Director

24 November 2023

Responsibility Statement

The Directors, whose names and functions are set out at the end of this report, are responsible for preparing the Unaudited Interim Condensed Consolidated Financial Statements in accordance with the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority ("DTR") and with International Accounting Standard 34 on Interim Financial reporting ("IAS 34"). The Directors confirm that, to the best of their knowledge,

(a) this Unaudited Interim Condensed Consolidated Report, which has been prepared in accordance with UK-adopted International Accounting Standard 34 gives a true and fair view of the assets, liabilities, financial position and profit or loss of the Group; and

(b) the interim management report includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8 namely:

-- an indication of key events occurred during the period and their impact on the Unaudited Interim Condensed Consolidated Financial Statements and a description of the principal risks and uncertainties for the second half of the financial year; and

-- material related party transactions that have taken place during the period and that have materially affected the financial position or the performance of the business during that period.

Remuneration of Directors and key management personnel

The remuneration of the key management personnel of the Group, including all directors of subsidiary companies, is set out below in aggregate for each of the categories specified in IAS 24 Related Party Disclosures.

 
                                   6 months to         6 months to    Year ended 
                                  30 September        30 September      31 March 
                              2023 (unaudited)    2022 (unaudited)          2023 
                                                                       (audited) 
                                       GBP'000             GBP'000       GBP'000 
 
 Wages and salaries                        395                 499         1,036 
 Share-based payments                        2                   5             5 
 Post-retirement benefits                   17                  24            48 
                            ------------------  ------------------  ------------ 
 
                                           415                 528         1,089 
                            ==================  ==================  ============ 
 

Claire Banks - Group Finance Director

24 November 2023

Condensed Consolidated Statement of Comprehensive Income

For the six months ended 30 September 2023

 
                                        Six months to 30 September 2023   Six months to 30 September 2022   Year ended 
                                                                                                              31 March 
                                                                                                                  2023 
                                                            (unaudited)                       (unaudited)    (audited) 
                                                                GBP'000                           GBP'000      GBP'000 
 
 Revenue                                                          5,923                             5,874       12,249 
 
 Cost of sales                                                  (4,883)                           (4,796)      (9,644) 
                                       --------------------------------  --------------------------------  ----------- 
 
 Gross profit                                                     1,040                             1,078        2,605 
 
 Administrative expenses                                          (966)                             (776)      (1,828) 
                                       --------------------------------  --------------------------------  ----------- 
 
 Operating profit                                                    74                               302          777 
 
 Finance income                                                      19                                 -           17 
 
 Impairment of Goodwill                                               -                                 -        (120) 
                                       --------------------------------  --------------------------------  ----------- 
 
 Profit before taxation                                              93                               302          674 
 
 Income tax expense                                                (25)                              (58)        (156) 
                                       --------------------------------  --------------------------------  ----------- 
 
 Profit for the period                                               68                               244          518 
                                       ================================  ================================  =========== 
 
 
 Earnings per share attributable to 
 owners of the parent 
 
 Weighted average number of shares:                                '000                              '000         '000 
 
        *    Basic                                               39,962                            39,962       39,962 
 
        *    Diluted                                             41,016                            41,016       41,016 
 
 Basic earnings per share                                         0.17p                             0.61p        1.29p 
 Diluted earnings per share                                       0.16p                             0.60p        1.26p 
 

Condensed Consolidated Statement of Financial Position

As at 30 September 2023

 
                                                    30 September 2023   30 September 2022    31 March 
                                                                                                 2023 
                                                          (unaudited)         (unaudited)   (audited) 
                                                              GBP'000             GBP'000     GBP'000 
 Non-current assets 
 Goodwill                                                       3,197               3,317       3,197 
 Right of use assets                                              397                 229         185 
 Property, plant and equipment                                     63                  50          49 
 Investments                                                       71                  71          71 
                                                   ------------------  ------------------  ---------- 
 
                                                                3,728               3,667       3,502 
 
 Current assets 
 Trade and other receivables                                    3,221               2,574       3,130 
 Cash and bank balances                                         1,649               1,718       2,405 
                                                   ------------------  ------------------  ---------- 
 
                                                                4,870               4,292       5,535 
 
 Current liabilities 
 Trade and other payables                                       1,703               1,266       2,260 
 Lease liabilities                                                105                  89          69 
 Corporation tax                                                  206                 222         170 
 
                                                                2,014               1,577       2,499 
 
 Net current assets                                             2,856               2,715       3,036 
                                                   ------------------  ------------------  ---------- 
 
 Non-current lease liabilities                                    298                 150         126 
 
 Net assets                                                     6,286               6,232       6,412 
                                                   ==================  ==================  ========== 
 
 Equity 
 
 Share capital                                                  1,998               1,998       1,998 
 Share premium account                                          1,712               1,712       1,712 
 Merger reserve                                                 3,042               3,042       3,042 
 Share-based payment reserve                                      370                 358         364 
 Retained losses                                                (836)               (878)       (704) 
                                                   ------------------  ------------------  ---------- 
 
 
 Equity attributable to the owners of the parent                6,286               6,232       6,412 
 
 

Condensed Consolidated Statement of Changes in Equity

 
                                    Share             Share based 
                          Share   premium    Merger       payment   Retained     Total 
                        capital   account   reserve       reserve     losses    equity 
                        GBP'000   GBP'000   GBP'000       GBP'000    GBP'000   GBP'000 
 
 Balance at 
  1 April 2022            1,998     1,712     3,042           415    (1,025)     6,142 
 Transfer on 
  reserves                    -         -         -          (63)         63         - 
 Total comprehensive 
  income                      -         -         -             -        244       244 
 Share based 
  payment charge              -         -         -             6          -         6 
 Dividend                     -         -         -             -      (160)     (160) 
 Balance at 
  30 September 
  2022                    1,998     1,712     3,042           358      (878)     6,232 
                       --------  --------  --------  ------------  ---------  -------- 
 
 Transfer on                  -         -         -             -          -         - 
  reserves 
 Total comprehensive 
  income                      -         -         -             -        274       274 
 Share based 
  payment charge              -         -         -             6          -         6 
 Dividend                     -         -         -             -      (100)     (100) 
 
 Balance at 
  31 March 2023           1,998     1,712     3,042           364      (704)     6,412 
 Transfer on                  -         -         -             -          -         - 
  reserves 
 Total comprehensive 
  income                      -         -         -             -         68        68 
 Share based 
  payment charge              -         -         -             6          -         6 
 Dividend                     -         -         -             -      (200)     (200) 
 Balance at 
  30 September 
  2023                    1,998     1,712     3,042           370      (836)     6,286 
                       ========  ========  ========  ============  =========  ======== 
 

Condensed Consolidated Statement of Cash Flows

for the six months ended 30 September 2023

 
                                                  Six months to 30 September   Six months to 30 September   Year ended 
                                                                                                              31 March 
                                                                        2023                         2022         2023 
                                                                 (unaudited)                  (unaudited)    (audited) 
                                                                     GBP'000                      GBP'000      GBP'000 
 Cash flow from operating activities 
 Profit for the period                                                    68                          244          518 
 Interest received                                                      (19)                            -         (17) 
 Income tax expense                                                       25                           58          156 
 Share based payment charge                                                6                            6           12 
 Impairment of goodwill                                                    -                            -          120 
 Depreciation                                                             63                           59          124 
                                                 ---------------------------  ---------------------------  ----------- 
 Operating cash flows before movement in 
  working capital                                                        143                          367          913 
 
 (Increase)/Decrease in trade and other 
  receivables                                                           (91)                           19        (537) 
 (Decrease)/increase in trade and other 
  payables                                                             (557)                        (652)          343 
                                                 ---------------------------  ---------------------------  ----------- 
 Cash generated by operations                                          (505)                        (266)          719 
 
 Income taxes refunded/(paid)                                             11                           20        (130) 
 
 Net cash (outflow)/inflow from operating 
  activities                                                           (494)                        (246)          589 
 
 Cash flows from investing activities 
 Interest received                                                        19                            -           17 
 Purchase of property, plant and equipment                              (33)                         (25)         (45) 
 
 Net cash (outflow) from investing activities                           (14)                         (25)         (28) 
 
 Cash flows from financing activities 
 Lease liability payments                                               (48)                         (44)         (89) 
 Dividends paid                                                        (200)                        (160)        (260) 
 
 Net cash (outflow) from financing activities                          (248)                        (204)        (349) 
 
 Net (decrease)/increase in cash and cash 
  equivalents                                                          (756)                        (475)          212 
 
 Cash and cash equivalents at beginning of the 
  period                                                               2,405                        2,193        2,193 
                                                 ---------------------------  ---------------------------  ----------- 
 
 Cash and cash equivalents at end of the period                        1,649                        1,718        2,405 
                                                 ===========================  ===========================  =========== 
 

Notes to the Condensed set of Financial Statements

for the six months ended 30 September 2023

1. General information

The Company and its subsidiaries (together "the Group") are a major provider of consultancy services to organisations that develop, fund or manage affordable housing. It provides specialist housing, sport, education and treasury management consultancy services.

The Company is a public limited company domiciled in the United Kingdom and incorporated under registered number 08988813 in England and Wales. The Company's registered office is Tempus Wharf, 29a Bermondsey Wall West, London, SE16 4SA.

2. Basis of preparation

The Unaudited Condensed Consolidated Interim Financial Statements of the Group have been prepared on the basis of the accounting policies, presentation, methods of computation and estimation techniques used in the preparation of the audited accounts for the period ended 31 March 2023 and expected to be adopted in the financial information by the Company in preparing its annual report for the year ending 31 March 2024.

This Interim Consolidated Financial Information for the six months ended 30 September 2023 has been prepared in accordance with UK-adopted International Accounting Standard 34. This Interim Consolidated Financial Information is not the Group's statutory financial statements and should be read in conjunction with the annual financial statements for the year ended 31 March 2023, which were prepared in accordance with UK-adopted International Accounting Standards and have been delivered to the Registrar of Companies. The auditors reported on those accounts; their report was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis of matter without qualifying their report and did not contain statements under section 498(2) or (3) of the Companies Act 2006.

The Interim Consolidated Financial Information for the six months ended 30 September 2023 is unaudited. In the opinion of the Directors, the Interim Consolidated Financial Information presents fairly the financial position, and results from operations and cash flows for the period.

The Directors have made an assessment of the Group's ability to continue as a going concern and are satisfied that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group, therefore, continues to adopt the going concern basis in preparing its consolidated financial statements.

The financial statements are presented in sterling, which is the Group's functional currency as the UK is the primary environment in which it operates.

3. Operating segments

The Group has two reportable segments being: consultancy, and treasury management services, the results of which are included within the financial information. In accordance with IFRS8 'Operating Segments', information on segment assets is not shown, as this is not provided to the chief operating decision-maker.

The principal activities of the Group are as follows:

Consultancy - a range of services to support the business needs of a diverse range of organisations across the housing (including housing associations and local authorities), education and sports sectors. Most consultancy projects run over one to two months and on-going business development is required to ensure a full pipeline of consultancy work for the employed team.

Treasury Management - a range of services providing treasury advice and fund-raising services to non-profit making organisations working in the affordable housing and education sectors. Within this segment of the business several client organisations enter fixed period retainers to ensure immediate call-off of the required services.

The accounting policies of the reportable segments are the same as the Group's accounting policies. Segment profit represents the profit earned by each segment, without allocation of central administration costs, including Directors' salaries, finance costs and income tax expense. This is the measure reported to the Group's executives for the purpose of resource allocation and assessment of segment performance.

 
                                        6 months      6 Months 
                                      to 30 Sept    to 30 Sept 
                                            2023          2022 
                                         GBP'000       GBP'000 
 
 Revenue from Consultancy                  5,734         5,647 
 Revenue from Treasury Management            189           227 
                                    ------------  ------------ 
                                           5,923         5,874 
                                    ============  ============ 
 
 

Within consultancy revenues, approximately 8% (2022: 16%) has arisen from the segment's largest customer; within treasury management 19% (2022: 20%).

Geographical information

Revenues from external customers, based on location of the customer, are shown below:

 
                     6 months      6 months 
                   to 30 Sept    to 30 Sept 
                         2023          2022 
                      GBP'000       GBP'000 
 UK                     5,530         5,658 
 Europe                   268           193 
 Rest of World            125            23 
                 ------------  ------------ 
                        5,923         5,874 
                 ============  ============ 
 

4. Share capital

The Company has one class of share in issue being ordinary shares with a par value of 5p. Allotted, issued and called up ordinary shares of GBP0.05 each:

 
                             Number   Amount called up and fully paid 
                                                              GBP'000 
                               '000 
 As at 1 April 2022          39,961                             1,998 
 
 As at 30 September 2022     39,961                             1,998 
 
 As at 31 March 2023         39,961                             1,998 
 
 As at 30 September 2023     39,961                             1,998 
                            =======  ================================ 
 

5. Share-based payment transactions

The Company operates an Unapproved Scheme and an Enterprise Management Incentives Scheme. The total cost recognised in the period to 30 September 2023 arising from share-based payment transactions is GBP6k (30 September 2022: GBP6k).

 
 Unapproved scheme                          Number            Weighted 
                                              '000    average exercise 
                                                                 price 
 Number of options outstanding at 1 April      171             GBP0.35 
  2023 and 30 September 2023 
                                           ======= 
 
         The exercise price of the options outstanding at 30 September 
                                                       2023 is GBP0.35 
                                            Number      Weighted average 
 EMI scheme                                   '000        exercise price 
 
 Number of options outstanding at 1 April 
  2023                                       2,196               GBP0.05 
 Number of options outstanding at 30 
  September 2023                             2,196               GBP0.14 
                                           ------- 
 
   Number of options exercisable at 30 
   September 2023                            1,305               GBP0.05 
                                           ======= 
 

6. Going concern

The Group has sufficient financial resources to enable it to continue its operational activities for the foreseeable future. Accordingly, the Directors consider it appropriate to adopt the going concern basis in preparing these interim accounts.

7. Dividend

An interim dividend of 0.25p will be paid on 20 December 2023 to shareholders on the register at 8 December 2023 at a cost of GBP99,905.

8. Related party disclosures

Balances and transactions between the Group and other related parties are disclosed below:

During the 6 months to 30 September 2023, Derek Joseph, Chair, was paid GBP33k (6 months to September 2022: GBP11.7k) which includes GBP28k (6 months to September 2022: GBP6.7k) of consultancy fees in relation the Group's international business.

Richard Wollenberg, non-executive director, accrued fees of GBP2k (6 months to September 2022: GBP2k). At 30 September 2023, the balance owed to Richard Wollenberg for services as a non-executive director was GBP6k (6 months to September 2022: GBP6k).

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END

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