5 March
2024
Blackbird
plc
("Blackbird" or the "Company")
Audited full year results for
the year ended 31 December 2023
Blackbird plc (AIM: BIRD), the
technology licensor, developer and seller of the multi
award-winning cloud-native video editing platform,
Blackbird,
announces its audited full year results for the year ended 31
December 2023.
Ian
McDonough, CEO of Blackbird, commented:
"2023 was a year of great progress
on our direct to creator platform, elevate.io. During the year we
conducted both qualitative and quantitative market research which
reinforced our belief that there are three key problems that
creators face in content creation, namely: i) they currently have
to use complex locally installed products; ii) third-party
collaboration is clunky; and iii) existing tools have limited
extensibility. Our vision for elevate.io is to address these
problems via a powerful web-based platform. We are early to market
in this area and have the opportunity to capitalise on the paradigm
shift to web-based video tools for the huge and fast-growing
Creator Economy. Good progress is being made on the
development of elevate.io which went into its early access phase in
November 2023 and will move to general release at the end of March
2024. The Board are very excited about the prospects for
elevate.io."
"2023 was a challenging year for our
existing Blackbird platform. Revenue fell by 32% to £1.94 million.
Whilst the majority of the fall is attributable to non-recurring
items in 2022, such as the EVS technology licensing development
fees and the fees for the global winter games, we also experienced
some deal losses, most notably A+E Networks, which as we announced
in May 2023 concluded at the end of June 2023. Flat advertising
revenues and structural changes are affecting the industry with
layoffs being made across the Media and Entertainment and
technology sectors. Despite this, Blackbird continues to be used at
the pinnacle of Sports and News video creation. During the year our
platform was used at a number of major global sporting events,
including the Women's World Cup, the Rugby World Cup, the Ryder
Cup, the Superbowl and at all of the tennis majors. Through one of
our OEM partners, we also closed a deal for the 2024 summer games
where the platform will be used on up to 70 concurrent feeds
granting access to our full suite of tools to global broadcasters.
In News, through our partnership with Blox Digital, Blackbird
continues to provide fast-turnaround content for local US news
stations and in early 2024 we had a further expansion of an
additional 2 stations to leave us with 69
in total. Through our deal with the US Department of State,
the US Secretary of State's press conferences continue to be edited
and pushed at speed to social media through our
platform."
"Additionally, as general access
of elevate.io approaches we have had a number of High Net Worth
individuals show interest in investing directly in our story. As a
result, last week we raised additional funds to assist in the early
months of elevate.io's
growth. We were delighted to get the support of the individuals and
institutions and did this at only a minimal discount. As announced
on 29 February 2024 I and other members of the management team
intend to subscribe for £70,000 of new shares following the
announcement of these results."
"I am very excited about 2024 and
progressing elevate.io to general release. The Creator Economy
represents a massive opportunity for the Company to open up our
addressable market and, through elevate.io's self-service model, we
anticipate this significantly accelerating our revenue
growth".
Operational highlights (post year end)
·
elevate.io on track to move to general release at
the end of Q1 2024
·
Placing announced on 29 February 2024:
o to raise approximately £1.05 million
before expenses;
o bring onboard some engaged High Net Worth individuals who
showed interest in investing directly in our story; and
o proceeds will be used to bolster our investment in and grow
elevate.io
· Certain
members of the Board, associated family members and management are
intending to subscribe for an aggregate of approximately £70k
following the release of this announcement
· Anne
de Kerckhove to join the Board on 6 March 2024 as Senior
Independent Non-Executive Director and Audit Chair. John Honeycutt,
Independent Non-Executive Director will step down on the same
date
· Deals
signed, through our partner Blox Digital, for an additional 2 local
US news stations taking the total serviced to 69
· £1,167k*
revenue secured for 2024, at end of February 2024, which is down
28% year on year (2023 comparative at end of February 2023:
£1,618k)
· Contracted but unrecognised revenue of £1,514k* at end of
February 2024. Of this, £913k* is to be recognised in 2024, a
further £311k* in 2025, with the remainder in 2026
*Unaudited and subject to exchange
rate fluctuations
Operational highlights (during the year)
· Direct
to Creator platform named elevate.io at the Company's investor day
in September 2023. Subsequently, elevate.io went into early access
in November 2023
· Contract
win with an OEM partner for use at global summer games in 2024. The
deployment will involve Blackbird's platform being used to edit and
publish content from up to 70 concurrent live streams and provide
rights holders all over the world with the full editing
suite
· Deal
signed with CBS19 reinforcing Blackbird's applicability for fast
turnaround news content
· Restructuring
leading to annual cost savings £0.6m from reduction of UK based
roles mainly in sales and marketing. Reinvestment of funds in
software development team and product specialists
· Deal
signed with Argentinian station Telefe, part of the Paramount
Global group and introduced by the CBS sports team, for football
highlights
·
One year deal signed with a large Mexican
broadcaster via our partner, Simplemente
· Deals
signed with Australian OTT provider and subsequently used at Roland
Garros and all subsequent tennis majors
·
Further successful renewals including with US
Department of State, Sky News Arabia, BT and Arsenal
·
Protected our core technology increasing our IP
portfolio to 27 patents, with a further two pending
·
Guest exhibitor on Microsoft's stand at the NAB
show in April 2023
Financial highlights
· Revenues
of £1,937k for the 12 months to 31 December 2023, down 32%
year-on-year (12 months to 31 December 2022: £2,847k) with the main
reasons being no development fees on technology licensing in 2023
(2022: £452k), one-off fees on the winter games in 2022 and the
loss of the A+E Network and NHL deals
· Contracted
but unrecognised revenue of £1,770k down 48% year-on-year (as at 31
December 2022: £3,426k). The main reasons behind the fall were the
loss of the A+E Networks deal and one year less of some of our
larger deals
o £1,151k of this balance is to be recognised in 2024 (as at 31
December 2022: £1,597k to be recognised in 2023),
o £325k in 2025 (as at 31 December 2022: £1,045k to be
recognised in 2024),
o £294k in 2026 (as at 31 December 2022: £480k to be recognised
in 2025)
· Operating
costs, excluding LTIP provision, during the year to 31 December
2023 were £4,114k compared to £4,510k in the corresponding period
in 2022. Operating costs pre-capitalisation and LTIP provision
increased to £5,744k from £4,975k. Capitalisation costs increased
to £1,631k from £458k mainly due to the increased development work
on the elevate.io platform
· Adjusted
EBITDA loss (pre LTIP and share option costs), increased to a loss
of £2,301k (2022: a loss of £1,806k). This was due to lower
revenues partially offset by lower operating costs
· The
net loss for the year was £2,493k compared to a net loss of £1,917k
in 2022 due to a lower Adjusted EBITDA pre LTIP provision, as
explained above, no amount relating to the LTIP in the income
statement in 2023 (2022: £350k credit), partially offset by higher
net financial income as a result of higher interest
rates
· Net
cash outflow, ignoring proceeds from share issues and transfers
into short-term deposits, increased to £3,786k (12 months to 31
December 2022: £2,746k), primarily as a result of
£1,248k additional costs incurred on developing the
elevate.io platform
·
At 31 December 2023 the Company had cash and
short-term deposits of £6,468k (2022: £10,099k) and no
debt.
Enquiries:
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Blackbird plc
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Tel: +44 (0)20 8879 7245
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Ian McDonough, Chief Executive
Officer
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Stephen White, Chief Operating and
Financial Officer
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Allenby Capital Limited (Nominated Adviser and Broker)
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Tel: +44 (0)20 3328 5656
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Nick Naylor / Piers Shimwell
(Corporate Finance)
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Amrit Nahal / Guy McDougall (Equity
Sales)
About Blackbird plc
Blackbird plc operates in the
fast-growing SaaS and cloud video market. It has created
BlackbirdⓇ, the world's most advanced suite of cloud-native computing
applications for video all underpinned by its lightning fast codec.
Blackbird plc's patented technology allows for frame accurate
navigation, playback, viewing and editing in the cloud.
BlackbirdⓇ enables multiple applications, which are used by rights
holders, broadcasters, sports and news video specialists, live
events and content owners, post production houses, other mass
market digital video channels and corporations.
Since it is cloud-native,
BlackbirdⓇ removes the need for costly, high-end workstations and can be
used from almost anywhere on almost any device. It also allows full
visibility on multilocation digital content, improves time to
market for live content such as video clips and highlights for
digital distribution, and ultimately results in much more effective
monetisation. Blackbird plc is a licensor of its core video
technology under its 'Powered by Blackbird' licensing model.
Enabling video companies to accelerate their path to true cloud
business models, licensees benefit from power and carbon
reductions, cost and time savings, less hardware and bandwidth
requirements and easy scalability. elevate.io, built using
Blackbird core technology, is the company's new creator SaaS
product, a browser based end-to-end content creation tool aimed at
the Creator Economy.
www.blackbird.video
www.linkedin.com/company/blackbird-cloud
www.twitter.com/blackbirdcloud
www.facebook.com/blackbirdplc
www.youtube.com/c/Blackbirdcloud
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Chairman's statement
2023 has been a significant year of
investment and transformation for Blackbird:
In last year's Annual Report (and in
our public statements prior and subsequently), we stated our plans
…" to focus on creating a self-service SaaS platform provided on a
public cloud ("Blackbird SaaS")" to "…bring on board, product,
engineering and marketing talent to enable us to initially address
the Prosumer and Pro Teams markets" and to "continue to drive
innovation, creating valuable IP in the process".
This we have done in 2023. Our
new elevate.io SaaS platform commenced early access Q4 of 2023 and
will begin general release towards the end of Q1 2024.
Background
Long term followers of Blackbird
will already appreciate that our award-winning technology is well
recognized within the professional broadcast market for media and
entertainment ("M&E"), which has previously been the main focus
and drive of our go to market strategy. However, each of our major
accounts have often required bespoke integrations which are both
time consuming and costly. Combined with the pressures that major
broadcasters face with diminishing audience share and reduced
advertising or subscription revenues, it has proved a challenging
task to grow our share of the M&E services market. As a
consequence, we took steps to ensure that, without turning our
backs on the M&E market where we still have role to play, we
expanded our focus into the significant prosumer/creator market
with a standalone product that builds upon the core technology that
underpins the Blackbird platform.
The market potential for elevate.io
is significant. The total addressable market ("TAM") is enormous
and, after almost two years of team building and product
development, we start 2024 in a position to capitalise on our
capabilities. We will provide unique and much needed solutions to
this major market. Ian outlines our approach and this opportunity
in more detail in his Chief Executive's review.
Governance
Over the last year we have made
changes to the composition and skill mix of the board to better
reflect the requirements of our wider market focus and SaaS product
model. To this end, David Main one of our most long serving
nonexecutive directors (and former Chairman) stepped down during
the year and we undertook an extensive search to secure a suitable
replacement. We would like to use this opportunity to thank David
for his contribution and diligence over the years and for the
unwavering support and constructive input that he has always
provided. We will also shortly be saying goodbye to John
Honeycutt who has stepped down to concentrate on his growing
International client portfolio. We would like to thank him for his
sound technical advice and M&E sector knowledge.
Yesterday we were pleased to announce the appointment of Anne de
Kerckhove as a non-executive director. Anne is an experienced
international executive with a background in technology, B2B and
B2C SaaS, Media and Entertainment, e-commerce, marketplaces &
digital transformation, and helping businesses scale. Anne
has a wealth of relevant and valuable experience which will assist
us as we roll out and scale elevate.io.
Regarding governance policies, we
have recently updated our corporate governance policies in line
with renewed guidance from the Quoted Companies Alliance (QCA)
which is our adopted corporate governance code. Our updated policy
statement is available to view on www.blackbird.video. We
have adopted all the updated recommendations, where applicable, and
going forward will seek annual reelection to the board for all
directors and putting director's remuneration to an advisory vote.
We also follow all QCA recommendations on ESG matters whilst we promote the role that we play in helping
other stakeholders in achieving their own ESG
targets.
We appreciate that the last couple
of years have been a very challenging time for our business and
shareholders alike. All of the board are shareholders of Blackbird
and we are very mindful of the investment journey that each of us
have experienced. On behalf of the board, I would simply like to
thank you for your belief and on-going support, particularly as we
transition the business in order to realize the full economic
potential of our amazing technology which we are working
relentlessly to achieve.
Andrew Bentley
Chairman
Chief Executive Officer's statement
2023 was the year of tremendous
progress on our direct to creator Blackbird SaaS platform now
officially named, elevate.io. During the year we conducted both
qualitative and quantitative market research with over 300 people
which reinforced our belief that there are three key common
problems that creators face in content creation. Namely, that to
make a video of quality they currently have to use complex locally
installed 'Hollywood' tools, there is clunky third-party
collaboration and the existing tools have limited extensibility in
terms of third party plug-ins, AI, stock library or effects. Our
vision for elevate.io is to address these issues and others via a
powerful web-based platform. We believe we are early to market in
this area and have the opportunity to capitalise on the paradigm
shift to web tools in video for the huge and fast-growing Creator
Economy. Strong progress is being made on the development of
elevate.io which went into its early access phase in November 2023
and will move to general release at the end of March
2024.
Our strategic vision set out in 2021
to develop a tool set for the creator space has proved prescient as
the media and entertainment industries globally suffer badly from
both cyclical and structural issues. Flat advertising revenues,
industry consolidation and the continuing search for sustainable
profits from streaming services are affecting the industry with
layoffs rife across the M&E and technology sectors. Meanwhile
the creator economy continues to grow strongly with Goldman Sachs
predicting a doubling in size from $250bn to $500bn by
2027.
It's probably no surprise therefore
that 2023 was a challenging year for our existing Blackbird
platform as the market stagnated and our internal resources were
focused on elevate.io. As a result revenue fell by 32% to £1.94
million. Whilst most of the fall is attributable to non-recurring
items in 2022, the EVS technology licensing development fees and
the fees for the global winter games, we also experienced some deal
losses, most notably A+E Networks, which as we announced in May
2023 concluded at the end of June 2023.
This is a highly competitive and
exacting space, and some internal decisions were taken about where
to deploy developer resource to achieve the highest ROI for the
Company. Despite this, Blackbird continues to be used on the
pinnacle of Sports and News and was used on the largest sporting
tournaments in 2023. During the year the platform was used for the
Women's World Cup, the Rugby World Cup, the Ryder Cup, the
Superbowl and at all of the tennis majors. Through one of our OEM
partners, we also closed a deal for the 2024 summer games where the
platform will be used on up to 70 concurrent feeds granting access
to our full suite of tools to global broadcasters. In News, through
our partnership with Blox Digital, Blackbird continues to provide
fast-turnaround content for local US news stations and in early
2024 we had a further expansion of an additional 2 stations to
leave us with 69 in total. Through our deal with the US
Department of State, the US Secretary of State's press conferences
continue to be edited and pushed at speed to social media through
our platform. Although challenged in achieving scale, Blackbird's
prestigious client base and technological pedigree in global news
and sport sets us up very well for scaling elevate.io.
The ongoing challenges to the media
and entertainment sector are most evident in our losses of the
Gfinity and ODK services which have been pulled from the market. In
addition, Deltatre lost key sports contracts and A+E discontinued
its close to live action show which both contributed to the
reduction in revenues on the Blackbird platform. The post covid
return to on premise strategy for the NHL also led to the
termination of their contract. None of this is desirable but
together with long sales cycles and idiosyncratic workflows and
complexity, it is symptomatic of the sector.
As has been seen in the last year
the Company will keep a careful eye on the cost base as compared to
the opportunity and take action where and when
necessary.
With regards to tools for Creators
there have been some very exciting developments in recent years
where companies like Figma and Canva have unlocked huge amounts of
value by a combination of simplifying toolsets and taking them
natively to the web. It would be easy to think that simple,
powerful web video creation tools already exist. However, for
videographers using standard Non-linear Editor ("NLE") suites then
there are lots of pain points still to iron out.
Currently video production tools are
powerful but inflexible such as traditional 'Hollywood' NLE's. Or
they are semi-flexible web tools that lack power, usability, and
functionality and only suitable for short form video.
The vision behind elevate.io is to
bring power and flexibility together. No company has truly cracked
video production at scale in the cloud as video has been
traditionally very clunky, expensive, and slow to manipulate on the
web. The prize on offer for the largest public clouds if this
happens is huge amounts of future storage, bandwidth and compute as
production moves off premise to cloud workflows.
elevate.io has been architected and
built natively in the AWS public cloud as was our vision when I
joined the Company. This allows both effectively infinite storage
for our customers and most importantly effectively infinite power
for complex or compute hungry video creation workflows should this
be required in bursts. The fact that we are architected on AWS does
not mean we are in any way restricted from working with customers
and creators who have content stored in other places or clouds. We
will continue to be completely agnostic in this area.
After extensive research, involving
more than 300 future prospects, our vision for elevate.io is to
make an extensible platform by combining disparate strands of what
is currently a 'broken workflow' for videographers in a seamless
and slick user experience. Examples of this vision for future
functionality would include storage, media management, editing,
stock video, third party effects and AI and many others. As
investors will be aware this is a dynamic and competitive space and
so we will not go too deeply into future product plans.
In addition to making the platform
extensible, a key selling point for creators from the outset will
be the live multi-player ability. Use cases for this will range
from creators being able to work in pairs or teams, supervising
producers working with editors remotely, those pro-teams in
client-agency relationships getting feedback on changes in real
time.
We envisage that a combination of
these features will result in both improved efficiency and improved
video and storytelling quality which is a virtuous circle for
creators and viewers alike.
Additionally, as general access of
elevate.io approaches, we have had a number of engaged High Net
Worth individuals show interest in investing directly in our story.
Together with some existing shareholders we have raised additional
funds to assist in the early months of elevate.io's growth. We were
delighted to get the support of these individuals and institutions
and did this at only a minimal discount.
I am very excited about 2024 and
moving elevate.io to general release at the end of Q1. The Creator
Economy represents a massive opportunity for the Company to open up
our addressable market and, through elevate.io's unique
proposition, product market fit and self-service model, we
anticipate this accelerating our revenue growth.
Ian
McDonough
Chief Executive Officer
Financial review
Revenue
In the year ended 31 December 2023,
the Company recorded revenues of £1,937k (2022: £2,847k), which
represented a decrease of 32% year on year. The majority of the
fall relates to two non-recurring items in 2022; firstly, the
development fee for the technology licensing fee and secondly
revenues earned from the global winter games. However, the Company
also lost deals from A+E Networks, Deltatre and NHL during the
year, and smaller ones from ODK and Gfinity who shut their services
due to them being uneconomical in the tough market
conditions.
Operating costs
Operating costs, excluding LTIP
provision, during the year to 31 December 2023 were £4,114k
compared to £4,510k in the corresponding period in 2022. Operating
costs pre-capitalisation and LTIP provision increased to £5,744k
from £4,975k. Capitalisation costs increased to £1,631k from £458k
mainly due to the increased development work on the elevate.io
platform. Restructuring of the Blackbird platform team led to
a number of roles leaving the business and resulted in one-off
costs of £131k. Going forward this action will lead to annual
savings of c.£600k.
Performance measures
The Company has identified certain
metrics such as i) Adjusted EBITDA pre LTIP provision and share
option costs and ii) cash burn excluding proceeds from share issues
and transfers into short-term deposits, which whilst they are
non-GAAP metrics, assist in the understanding of business
performance. These alternative performance measurements may not be
directly comparable with other companies' measures and are not
intended to be a substitute for any International Accounting
Standards performance measures. The Company believes that Adjusted
EBITDA pre LTIP provision and share option costs is the best
measure to reflect core operational performance and that cash burn,
excluding proceeds from share issues and transfers into short-term
deposits, provides the best measure of the cash being utilised by
the business until it can be self-generating.
Adjusted EBITDA pre LTIP provision and share option
costs
The Adjusted EBITDA pre LTIP
provision and share option costs loss increased to a loss of
£2,301k (2022: a loss of £1,806k). This was due to lower revenues
partially offset by lower operating costs as explained
above.
LTIP
There were no LTIP units issued
during the year and consequently there was no charge to the Income
Statement in 2023 (2022: £350k credit) and no LTIP provision on the
Statement of Financial Position at 31 December 2023 (At 31 December
2022 £nil).
Net loss
The net loss for the year was
£2,493k compared to a net loss of £1,917k in 2022 due to a worse
Adjusted EBITDA pre LTIP provision as explained above, a £350k LTIP
credit to the income statement in 2022 (2023: £nil), partially
offset by higher net financial income as a result of higher
interest rates.
Cash burn excluding proceeds from share issues and transfers
into short-term deposits
During the year the Company's cash
burn, excluding proceeds from share issues and transfers into
short-term deposits, increased to £3,786k from £2,746k in 2022,
primarily as a result of £1,248k additional costs incurred on
developing the elevate.io platform.
The Company ended the year with a
balance sheet including £6,468k of cash and short-term deposits (31
December 2022: £10,099k) and no debt.
Outlook
The Company started the year with a
contracted but unrecognised revenue balance of £1,770k (2022:
£3,426k) down 48% on prior year. The main reasons behind the fall
were the loss of the A+E Networks deal and one year less of some of
our larger deals. £1,150k of the year-end balance relates to
revenue to be recognised in 2024 (2022 comparative: £1,597k revenue
to be recognised in 2023). The Company will be showcasing its
platform, via its OEM partner, EVS, to multiple Broadcasters at the
2024 global summer games.
We anticipate that elevate.io will
be made available for general release at the end of Q1 2024. The
intention is to open up our addressable market and accelerate sales
growth through elevate.io's self-service model. The board are
excited about the prospects for elevate.io and are greatly
encouraged by the feedback from early users.
In February 2024 the Company
announced a placing to raise £1.05 million (before expenses) to
bring onboard some valuable High Net Worth individuals who wanted
to invest directly in our story. The proceeds will be used to
bolster our investment in and grow elevate.io.
Stephen White
Chief Operating and Financial Officer
Income statement and statement of comprehensive income for the
year ended 31 December 2023
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2023
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2022
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£
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£
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CONTINUING OPERATIONS
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Revenue
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1,937,481
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2,847,202
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Cost of Sales
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(124,918)
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(143,149)
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GROSS PROFIT
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1,812,563
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2,704,053
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Operating costs excluding LTIP
provision
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(4,113,851)
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(4,509,938)
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ADJUSTED EARNINGS BEFORE INTEREST, TAXATION, DEPRECIATION,
AMORTISATION, EMPLOYEE SHARE OPTION COSTS AND LTIP PROVISION
(ADJUSTED EBITDA Pre LTIP and Share Option Costs)
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(2,301,288)
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(1,805,885)
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LTIP provision decrease
Employee share option
costs
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-
(41,309) |
350,431
(168,981)
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EARNINGS BEFORE INTEREST, TAXATION, DEPRECIATION, AMORTISATION
(EBITDA)
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(2,342,597)
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(1,624,435)
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Depreciation
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(168,111)
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(144,677)
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Amortisation
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(416,691)
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(383,330)
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(584,802)
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(528,007)
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OPERATING LOSS
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(2,927,399)
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(2,152,442)
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Net Finance income
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325,409
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141,414
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LOSS BEFORE INCOME TAX
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(2,601,990)
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(2,011,028)
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Income tax
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108,704
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94,178
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LOSS FOR THE YEAR
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(2,493,286)
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(1,916,850)
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Other comprehensive
income
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-
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-
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TOTAL COMPREHENSIVE LOSS FOR THE YEAR
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(2,493,286)
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(1,916,850)
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Earnings per share expressed in
pence per share:
Basic - continuing and total
operations
(0.68p)
(0.52p)
Statements of financial position as at 31 December
2023
|
|
2023
|
2022
|
|
|
|
|
|
|
£
|
£
|
ASSETS
|
|
|
|
NON-CURRENT ASSETS
|
|
|
|
|
|
|
|
Intangible assets
|
|
2,547,305
|
1,270,231
|
|
|
|
|
Property, plant and
equipment
|
|
78,192
|
202,204
|
|
|
2,625,497
|
1,472,435
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
Trade and other
receivables
|
|
699,829
|
862,549
|
|
|
|
|
Stock
|
|
-
|
662
|
|
|
|
|
Current tax
assets
|
|
108,704
|
94,178
|
|
|
|
|
Short-term investments
|
|
2,489,009
|
4,366,342
|
Cash and bank balances
|
|
3,979,265
|
5,732,350
|
|
|
7,276,807
|
11,056,081
|
|
|
|
|
TOTAL ASSETS
|
|
9,902,304
|
12,528,516
|
|
|
|
|
EQUITY AND LIABILITES
|
|
|
|
CAPITAL AND RESERVES
|
|
|
|
|
|
|
|
Issued share capital
|
|
2,947,284
|
2,941,044
|
|
|
|
|
Share premium
|
|
34,079,856
|
34,038,746
|
|
|
|
|
Capital contribution
reserve
|
|
125,000
|
125,000
|
|
|
|
|
Retained earnings
|
|
(28,356,751)
|
(25,904,774)
|
TOTAL EQUITY
|
|
8,795,389
|
11,200,016
|
NON-CURRENT LIABILITIES
|
|
|
|
Lease and other payables
|
|
-
|
29,783
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
Trade and other payables
|
|
1,106,915
|
1,298,717
|
TOTAL LIABILITIES
|
|
1,106,915
|
1,328,500
|
|
|
|
|
TOTAL EQUITY AND LIABILITIES
|
|
9,902,304
|
12,528,516
|
Statement of changes in equity for the year ended 31
December 2023
|
|
Issued
share capital
|
|
Retained
earnings
|
|
Share
premium
|
|
Capital
contribution reserve
|
|
Total
equity
|
|
|
£
|
|
£
|
|
£
|
|
£
|
|
£
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 1 January 2022
|
|
2,940,524
|
|
(24,156,905)
|
|
34,034,228
|
|
125,000
|
|
12,942,847
|
|
|
|
|
|
|
|
|
|
|
|
Changes in equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issue of share capital
|
|
520
|
|
-
|
|
4,518
|
|
-
|
|
5,038
|
|
|
|
|
|
|
|
|
|
|
|
Share issue expenses
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Share based payment
|
|
-
|
|
168,981
|
|
-
|
|
-
|
|
168,981
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive loss for the
year
|
|
-
|
|
(1,916,850)
|
|
-
|
|
-
|
|
(1,916,850)
|
Balance at 31 December 2022
|
|
2,941,044
|
|
(25,904,774)
|
|
34,038,746
|
|
125,000
|
|
11,200,016
|
|
|
|
|
|
|
|
|
|
|
|
Changes in equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issue of share capital
|
|
6,240
|
|
-
|
|
41,110
|
|
-
|
|
47,350
|
|
|
|
|
|
|
|
|
|
|
|
Share based payment
|
|
-
|
|
41,309
|
|
-
|
|
-
|
|
41,309
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive loss for the
year
|
|
-
|
|
(2,493,286)
|
|
-
|
|
-
|
|
(2,493,286)
|
Balance at 31 December 2023
|
|
2,947,284
|
|
(28,356,751)
|
|
34,079,856
|
|
125,000
|
|
8,795,389
|
|
|
|
|
|
|
|
|
|
|
|
Statement of cash flows for the year
ended 31 December 2023
|
|
|
2023
|
|
2022
|
|
Notes
|
|
£
|
|
£
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
|
|
Cash used in operations
|
A
|
|
(2,157,629)
|
|
(2,194,724)
|
|
|
|
|
|
|
Interest paid on lease
liabilities
|
|
|
(3,185)
|
|
(7,692)
|
|
|
|
|
|
|
Tax received
|
|
|
94,178
|
|
32,166
|
Net cash from operating
activities
|
|
|
(2,066,636)
|
|
(2,170,250)
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
|
Payments for intangible fixed
assets
|
|
|
(1,706,141)
|
|
(470,200)
|
|
|
|
|
|
|
Payments for property, plant and
equipment
|
|
|
(44,096)
|
|
(90,226)
|
|
|
|
|
|
|
Transfer into short-term
investments
|
|
|
1,877,333
|
|
(197,156)
|
|
|
|
|
|
|
Interest received
|
|
|
236,634
|
|
82,041
|
Net cash from investing
activities
|
|
|
363,730
|
|
(675,541)
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
Share issues (net of
expenses)
|
|
|
47,350
|
|
5,038
|
|
|
|
|
|
|
Payment of lease
liabilities
|
|
|
(97,529)
|
|
(97,169)
|
Net cash from financing
activities
|
|
|
(50,179)
|
|
(92,131)
|
|
|
|
|
|
|
Decrease in cash and cash
equivalents
|
|
|
(1,753,085)
|
|
(2,937,924)
|
Cash and cash equivalents at
beginning of year
|
|
|
5,732,350
|
|
8,670,274
|
Cash and cash equivalents at end of year
|
|
|
3,979,265
|
|
5,732,350
|
A.
Reconciliation of loss before
income tax to cash used in operations
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
|
|
|
|
£
|
|
£
|
|
|
|
|
|
|
|
|
Loss before income tax
|
|
|
|
|
(2,601,990)
|
|
(2,011,028)
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
|
|
168,111
|
|
144,677
|
|
|
|
|
|
|
|
|
Amortisation charges
|
|
|
|
|
416,691
|
|
383,330
|
|
|
|
|
|
|
|
|
Finance income
|
|
|
|
|
(325,409)
|
|
(141,414)
|
|
|
|
|
|
|
|
|
Earnings before interest, taxation, depreciation and
amortisation
|
|
|
|
|
(2,342,597)
|
|
(1,624,435)
|
|
|
|
|
|
|
|
|
Adjustment for LTIP
|
|
|
|
|
-
|
|
(350,431)
|
|
|
|
|
|
|
|
|
Adjustment for Employee share option
costs
|
|
|
|
|
41,309
|
|
168,981
|
|
|
|
|
|
|
|
|
Movements in working
capital:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease /(Increase)in trade and
other receivables
|
|
|
|
|
165,300
|
|
(372,821)
|
|
|
|
|
|
|
|
|
(Decrease) in trade and other
payables
|
|
|
|
|
(21,641)
|
|
(16,018)
|
|
|
|
|
|
|
|
|
Cash used in operations
|
|
|
|
|
(2,157,629)
|
|
(2,194,724)
|
|
|
|
|
|
|
|
|
|
|