TIDMIGP
RNS Number : 1898T
Intercede Group PLC
23 November 2021
23 November 2021
INTERCEDE GROUP plc
('Intercede', the 'Company' or the 'Group')
Interim Results for the Six Months Ended 30 September 2021
Intercede, the leading specialist in digital identity,
credential management and secure mobility, today announces its
interim results for the six months ended 30 September 2021.
Financial Highlights
-- Revenues for the six months ended 30 September 2021 (H1)
totalling GBP4.9m are approximately 9% higher than last year on a
constant currency basis and 2% higher on a reported basis (2020:
GBP4.8m). This represents a fifth successive year of H1 growth with
compound average growth of 11% over the five corresponding H1
periods to 30 September 2021 .
-- Operating expenses increased by 3% to GBP4.6m (2020: GBP4.4m).
-- Increased revenues and a reduction in finance costs,
following the early retirement of convertible loan notes totalling
GBP5.0m in February 2021, have resulted in an increased profit for
the period of GBP0.5m (2020: GBP0.4m). Basic and fully diluted
earnings per share is 0.9p (2020: basic earnings per share of 0.9p
and a fully diluted earnings per share of 0.8p).
-- Cash balances of GBP8.5m at 30 September 2021 compared to
GBP8.0m held at 31 March 2021. It is worth noting that the 2021
R&D tax claim totalling GBP0.4m had not been received by the
period end and does not form part of the cash balances as at 30
September 2021 (2019: R&D claim totalling GBP0.4m was received
by the period end and formed part of the cash balances as at 30
September 2020).
-- Intercede's Connect Partner Programme has helped to form new
partnerships in Europe, the US, ASEAN, Latin America and Africa.
This has resulted in a record number of eight new customers being
signed up during H1.
Operating Highlights
-- MyID v12 released to plan, introducing a FIDO2 certified
authentication server, an improved operator client and a new MyID
authorisation service, which enables remote transaction approval
from a mobile app using secure multi-factor authentication
including fingerprint, PIN, or facial matching.
-- Phase 2 of the Intercede turnaround plan is underway to push
scalability and accelerate revenue growth. The Company is building
an M&A pipeline to expand its footprint across the
authentication pyramid and to address adjacent market segments.
Chuck Pol, Chairman, said:
"Intercede continues to be cash generative and deliver revenue
growth during a continued period of worldwide social and economic
turbulence. Sales through our Connect Partner Programme are
particularly encouraging, delivering a record number of new
customers in the first half, that are expected to generate
incremental revenues over time
The recent cyber-attack on Colonial Pipeline and the
after-effects of the SolarWinds breach are a strong reminder that
nations and enterprises need to heighten their cyber security
defences in order to maintain the confidence of the public. In our
view, the Intercede product suite is a best in class solution for
those parties looking to gain the highest levels of protection from
malicious and devastating cyber strikes. The MyID platform provides
Intercede's customers with government-grade multi-factor
authentication, whether it is PKI credential management or FIDO for
the Enterprise, allowing them to mix and match technologies and
manage them from a single software solution. B eing the only
provider to offer a PKI and FIDO hybrid solution means that we are
well placed to take market share as it becomes increasingly
accepted that password protection alone is not sufficient to
prevent unwanted attacks.
The Board continues to believe that Intercede is well placed to
benefit from the heightened and global focus on Cyber Security and
will look to strengthen this position going forward. "
ENQUIRIES
Intercede Group plc Tel. +44 (0)1455 558 111
Klaas van der Leest, Chief Executive
Andrew Walker, Finance Director
finnCap Tel. +44 (0)20 7220 0500
Stuart Andrews/Simon Hicks, Corporate Finance
Tim Redfern/Charlotte Sutcliffe, ECM
About Intercede
Intercede is a cybersecurity company specialising in digital
identities, derived credentials and access control, enabling
digital trust in a mobile world.
Headquartered in the UK, with offices in the US, we believe in a
connected world in which people and technology are free to exchange
information securely, and complex insecure passwords become a thing
of the past.
Our vision is to make the highest levels of cybersecurity
available to organizations and consumers alike, solving complexity
and scalability issues by managing high volumes of digital
credentials.
We have been delivering trusted solutions to high profile
customers for over 20 years. Our team of experts has deployed
millions of identities to governments, most of the largest
aerospace and defence corporations, and major financial services
and healthcare organizations, as well as leading
telecommunications, cloud services and information technology
firms, providing industry-leading employee and customer credential
management systems.
For more information visit: www.intercede.com
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and
is disclosed in accordance with the company's obligations under
Article 17 of MAR.
INTERCEDE GROUP plc
('Intercede', 'the Company' or 'the Group')
Interim Results for the Six Months Ended 30 September 2021
Interim Management Review
Introduction
Despite the COVID-19 pandemic, the previous financial year
demonstrated that Intercede has significant reasons to be
optimistic for the future. The Group completed Phase 1 of its
turnaround after recording its third consecutive year of profit and
cash generation, with 14% growth in revenues in its dominant US
market. The continuing positive trend and momentum gave the Board
the confidence to issue a call notice in respect of the outstanding
convertible loan notes (CLNs) totalling GBP5,005,000. The removal
of this debt from the balance sheet, and the elimination of the
associated interest cost, means Intercede is well placed to pursue
its growth strategy into 2021 and beyond.
Throughout this year, we have seen yet more evidence of the
economic and reputational threat posed to governments and
enterprises by cyber attacks. The first half of this financial year
has given rise to a number of catastrophic cybersecurity breaches
including the recent attack on Colonial Pipeline, whilst many
organisations are also still dealing with the aftereffects of the
SolarWinds breach. The increased instances of such malicious and
targeted strikes led to President Biden's administration issuing an
Executive Order on cybersecurity in May 2021. The Executive Order
is wide ranging, covering enhanced information sharing, replicable
'playbook' style responses to cybersecurity incidents and increased
vendor transparency. One item that stands out is that
username/password combination alone is not a permitted form of
authentication to access government systems and data and instead
secure Multi-factor Authentication (MFA) is mandated.
"Hackers don't break in, they log in"
Vasu Jakkal, Security vice-president Microsoft
Fundamentally, it is time to move on from passwords. Last year,
username/password breaches increased by +450% in the US, according
to ForgeRock's Identity Breach Report 2021. A key learning from the
Colonial attack is that MFA is not enough and the recent Executive
Order requires that authentication is secured with encryption of
data at rest and in transit. MFA is used to ensure that digital
users are who they say they are by requiring that they provide at
least two pieces of evidence to prove their identity. Each piece of
evidence must come from a different category: something they know,
something they have or something they are. Commonly, day-to-day MFA
utilises SMS-based one-time passwords (OTP's) but these are at risk
of phishing via open source and readily available phishing tools or
methods such as SIM swapping that rely on social engineering. This
is not the case with secure MFA, such as Public Key Infrastructure
(PKI) and FIDO (Faster Identity Online), which provide highly
secure crypto-based security that meets the requirements of the
Executive Order and mitigate against the threat of phishing, social
engineering, brute force and password spraying attacks.
In July 2021, Intercede was excited to announce that MyID had
been formally FIDO2 certified. The certification has been awarded
after MyID passed FIDO Alliance interoperability trials
demonstrating its ability to use open authentication standards
backed by technology leaders including Microsoft, Apple, Google,
Intel, Facebook and Amazon. This certification opens up Intercede's
addressable market by both territorial reach and product
breath.
The MyID platform manages deployment and lifecycle events for
both PKI, FIDO and combined PKI/FIDO devices, giving consistency
over policy, reporting and user experience. Intercede is proud to
offer the MyID platform as the first global solution to offer a
truly unified approach to credential management.
Strategy
Intercede continues to focus on its 5C strategy, centred around
Colleagues, Customers, Channels, Code and Cash. In this second
phase of our turnaround, we are adding a new C: Corporate
Development. The Group is actively exploring buy-side M&A
following the appointment of a new full time Head of Corporate
Development. The Board sees the value in taking time to ensure the
right strategic fit(s) to ensure scalability and accelerated
revenue growth, whilst also pursuing a disciplined approach to deal
pricing.
1. Colleagues
Intercede's product innovation roadmap leverages over 1,000
person-years of internal development expertise that would require a
competitor to spend significant time and effort to replicate. Put
very simply, the Group respects its staff and recognises they are
one of its most valuable assets. Two-way communication is promoted
to encourage colleagues to share their views and preferences, be
they positive or negative, so they can be addressed to deliver a
workplace that is enjoyable and productive. In September 2021, all
colleagues were invited to take part in the annual employee survey
which saw a high response of 96% (compared to an industry average
in the mid-60%s). Engagement has increased from 63% in 2017 to 85%
in 2021 (above industry norm) and has held steady compared to 2020,
which is reassuring and a positive indication of colleagues' health
and wellbeing during the pandemic and the switch to remote
working.
2. Customers
A record eight new customers were signed up during the period
and the level of attrition remains very low with renewal rates
above 98%.
Intercede works closely with customers to understand what is
important to them and reflect this in the MyID product roadmap. New
features such as enhanced REST APIs for simpler integration, the
improved user experience of the operator interface and support for
a wider range of authentication mechanisms including FIDO and
mobile ID, help to keep MyID relevant to our customers and ensure
that MyID is the system of choice where both security and
flexibility are essential in ensuring data is protected now and
into the future.
Customer upgrades to the latest release indicate the support for
the new features released as evidenced by the Group's recent
announcement that multiple major customers have chosen to upgrade
their existing MyID deployments including:
-- A major global aerospace and defence manufacturer upgrading
to benefit from enhanced system configuration capabilities and
integration APIs, enabling them to remove customisations and to
achieve greater in-house control of the solution. In addition,
support for the latest device types, such as YubiKey 5s, will allow
the customer to deploy modern authentication devices better suited
to their working environment.
-- A major transportation program wishing to modernise their
supported infrastructure platforms and also benefit from the more
intuitive and faster browser-independent operator interface.
-- A major US government agency choosing to extend their
deployment to overseas workers, benefiting from enhanced
self-service via kiosk interfaces, reducing operational costs while
maintaining compliance with government security standards.
One important communication channel we have with our customers
is the annual Customer Advisory Board (CAB). Virtual CABs were held
during October and November for Customers and partners in the RoW
and US respectively. They have followed a different format this
year, starting with a Product Roadmap and Customer Success
initiative session, then followed by non-concurrent workshops that
allowed customers to attend all sessions including: FIDO for the
Enterprise, Mobile Authentication & Transaction Signing and
Upgrading MyID.
There are encouraging signs that our efforts to increase and
improve customer interaction are paying off as evidenced by the
increase in participation of the Customer Satisfaction Survey, the
low churn rate and an increased NPS.
3. Channels
The deep focus on strengthening relationships with reseller and
technical alliance partners underlies Intercede's go-to-market
strategy, namely:
Additional Partners = increased addressable market = more
customer deployments
A key element of the Group's growth strategy is therefore
focused on increasing the number of partner relationships via
Intercede's Connect Partner Programme. There is a vast and
ever-growing number of Public Key Infrastructure (PKI) technologies
in global circulation and the business is continually assessing
them to identify those hardware and software vendors which meet
Intercede's criteria for providing a successful partnership.
We are pleased to report that excellent progress has been made
on this front with new partnerships formed in Europe, the US,
ASEAN, Latin America and Africa. The strength of these new
relationships has resulted in a record number of eight new
customers being signed up during H1, with orders received totalling
in excess of GBP700,000, most of which will be recognised in the
current fiscal year.
Intercede continues to focus on technical alliances so that
customers benefit from their digital infrastructure being
seamlessly joined by the secure credential issued by the MyID
platform. In Europe we continue to work with the likes of Cryptas
and ESYSCO to embed MyID in their solution offerings. This enables
enterprises to benefit from a single and secure source of identity
to access centralised systems, such as HR and Finance, and provide
strong authentication to eIDAS (electronic identification and trust
services) signing services.
There has been interest from app developers in Latin America who
wish to issue a secure credential with MyID to act as a vaccine
passport, which would utilise relevant experience that Intercede
has from working on the Kuwait National ID scheme. In our core US
market, we were pleased to announce that MyID v12.1 supports the
Entrust CA gateway using REST APIs and continue to be part of their
Entrust technology Alliance Program.
We are also looking forwarding to sponsoring and speaking at
Sailpoint's annual ID.gov event later this month and demonstrating
MyID working with SailPoint to help organisations automate the
process of onboarding employees and issuing digital
credentials.
4. Code
During this financial year, Intercede has continued to invest in
the MyID platform in accordance with its core development
principles:
-- Create and maintain a modern platform based upon market
leading technology;
-- Broaden the addressable market with new functionality;
and
-- Meet constantly evolving Customer and Partner needs.
April 2021 saw the announcement of the release of MyID v12 which
introduced the following significant new features:
-- FIDO - MyID can now operate as a FIDO server, supporting a
wide range of FIDO2 authenticators and delivering the ability to
manage issuance policy and lifecycle management, providing
organisations with the control they need to ensure that only the
right people can access protected systems and resources.
-- Authentication Server - an easy to operate method of
authentication that enables a customer to use mobile devices within
their existing PKI to secure access to the applications, such as
Office 365, that they need as part of their role using fingerprint,
PIN, or facial matching.
-- Operator Client - additional features have now been migrated
to the new operator client to improve performance and user
experience. The operator client is now supported on Google Chrome,
Microsoft Edge (Chromium) and Mozilla Firefox browsers.
The imminent release of MyID v12.2 will remove any dependency on
Internet Explorer whilst adding more options to authenticate users
for self-service features and further operations to the new
Operator Client including the ability to embed it within an
existing end user portal. As mentioned in the 'Customer' section
above, some of our largest customers are choosing to upgrade MyID
to benefit from these new features and capabilities.
5. Cash
The Group remains in a healthy financial position, with gross
cash balances of GBP8,491,000 as at 30 September 2021 compared to
GBP8,029,000 held at 31 March 2021. Following the early retirement
of all convertible loan notes in February 2021, the Group has no
long-term debt or external financing.
Financial Results
Revenues for the six months ended 30 September 2021 totalling
GBP4,855,000 are approximately 9% higher than last year on a
constant currency basis and 2% higher on a reported basis (2020:
GBP4,762,000 on a reported basis). It is also pleasing to note the
longer-term trend of Intercede's revenue as t his represents a
fifth successive year of H1 growth with compound average growth of
11% over the five corresponding H1 periods to 30 September 2021
.
Revenue highlights for the period include:
- A new MyID Enterprise deployment sale to the US Air Force to
support an overseas forward deployment.
- As previously mentioned, multiple major customers have chosen
to upgrade their existing MyID deployments including, but not
limited to, a major global aerospace and defence manufacturer, a
major transportation program and a major US government agency.
- A new MyID Enterprise deployment sale to a photonics
technology business based in the UK to help them automate the issue
of virtual smart cards (VSCs) at scale.
- A new MyID Enterprise deployment sale and order for
professional services to assist a new partner based in South
America to set up a pilot ID Provider for the service network of a
multinational financial service corporation.
- A new MyID Enterprise deployment sale to a shared service
provider for a major US government defence agency.
- Two new MyID PIV deployment sales to an existing US Air Force
base customer. This customer now operates six similarly sized MyID
PIV deployments.
All of these wins are expected to generate incremental revenue
over the next 12 months from a combination of support &
maintenance plus professional services, development and/or
follow-on license sales.
Compared to the corresponding period last year, operating
expenses have increased by 3% to GBP4,589,000 (2020: GBP4,446,000).
Underlying costs are very consistent and reflect continued tight
control over all areas of expenditure. Travel expenses continue to
be very low and comparable to the almost complete cessation of
travel during the COVID-19 pandemic in the first half of 2020.
Staff costs continue to represent the main area of expense
representing 85% of total operating costs (2020: 87%). The Group
continues to recognise the achievements of its staff with pay rises
and performance-related rewards. Intercede had 82 employees and
contractors as at 30 September 2021 (30 September 2020: 83). The
average number of employees and contractors during the period was
84 (2020: 83).
A GBP416,000 taxation credit for the period (2020: GBP438,000
taxation credit) primarily reflects the 2021 Research &
Development ("R&D") claim which results from the Group's
strategic investment activities. The Group is a beneficiary of the
UK Government's efforts to encourage innovation by allowing 130% of
qualifying R&D expenditure to be offset against taxable profits
and 14.5% of the lower of R&D losses or taxable losses to be
paid as tax credit s.
The increase in operating expenses exceeds the increase in
revenue, resulting in a small reduction in operating profit to
GBP171,000 (2020: GBP295,000). However, the fall in finance costs
following the elimination of the convertible loan notes produces an
increased profit for the period of GBP539,000 (2020: GBP441,000)
and has resulted in a basic and fully diluted earnings per share of
0.9p (2020: basic earnings per share of 0.9p and a fully diluted
profit per share of 0.8p).
Cash balances as at 30 September 2021 totalled GBP8,491,000
which compares with GBP8,029,000 as at 31 March 2021. It is worth
noting that the 2021 R&D tax claim totalling GBP433,000 had not
been received by the period end and does not form part of the cash
balances as at 30 September 2021 (2019: R&D claim totalling
GBP447,000 was received by the period end and formed part of the
cash balances as at 30 September 2020).
Retirement of Finance Director
Intercede also announces that after 21 years with the Company,
Andrew Walker, Finance Director, has informed the Board of his
intention to retire and step down from the Board. He will continue
in the role during his notice period of up to 12 months or until an
orderly handover can take place. As a result, the Board has begun a
recruitment process to identify his successor.
Andrew has been instrumental in the growth of Intercede
throughout his 21 years at the Company and his contributions during
the last three years have been critical to the success of the Phase
1 turnaround plan. We wish Andrew the very best for his
retirement.
Outlook
Whilst the nature of Intercede's business and customer profile
is such that the precise timing of orders is difficult to predict,
the first half of this year gives us several reasons to be
cautiously optimistic. We have continued to demonstrate the
strength of our product suite in our core market (PKI), which
offers our Blue Chip client base the highest levels of
authentication technology available. We are encouraged by the
long-term nature of these customer relationships, which remain
sticky and grow incrementally over time and provide us with a solid
sales pipeline to support management's revenue target.
At the same time, Intercede has ambitions to generate further
top line growth and we have identified various avenues to achieve
this in the medium-term. We have expanded our TAM (Total
Addressable Market) by moving into the FIDO space, which requires a
rigorous but lower level of authentication technology and makes our
products more relevant to a wider customer base. Initial
indications from the proof of concept phase are promising and we
look forward to rolling this new solution out to both existing and
new customers. With a renewed focus on growth, we have also
implemented an M&A strategy which will concentrate on gaining
exposure to adjacent and attractive markets.
With various positive structural growth drivers in play and
expansion into new markets, the Board remains positive about the
medium and long-term prospects for Intercede. As a such, whilst we
remain cautious of the effects of COVID-19, the Board can confirm
that the outlook for the second half of FY22 continues to remain in
line with management's expectations.
By order of the Board
Klaas van der Leest Andrew Walker
Chief Executive Officer Finance Director
23 November 2021 23 November 2021
Consolidated Statement of Comprehensive
Income
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2021 2020 2021
GBP'000 GBP'000 GBP'000
Continuing operations
Revenue 4,855 4,762 10,961
Cost of sales (95) (21) (235)
__________ __________ __________
Gross profit 4,760 4,741 10,726
Operating expenses (4,589) (4,446) (9,137)
__________ __________ __________
Operating profit 171 295 1,589
Finance income 5 3 9
Finance costs (53) (295) (494)
__________ __________ __________
Profit before tax 123 3 1,104
Taxation 416 438 425
__________ __________ __________
Profit for the period 539 441 1,529
__________ __________ __________
Total comprehensive income attributable
to owners of the parent company 539 441 1,529
__________ __________ __________
Profit per share (pence)
- basic 0.9p 0.9p 3.0p
- diluted 0.9p 0.8p 2.8p
__________ __________ __________
Consolidated Balance Sheet
As at As at As at
30 September 30 September 31 March
2021 2020 2021
GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant and equipment 134 109 154
Right of use assets 553 851 725
___________ ___________ __________
687 960 879
___________ ___________ __________
Current assets
Trade and other receivables 2,187 1,315 4,098
Cash and cash equivalents 8,491 8,067 8,029
___________ ___________ __________
10,678 9,382 12,127
___________ ___________ __________
Total assets 11,365 10,342 13,006
___________ ___________ __________
Equity
Share capital 572 505 571
Share premium 5,138 673 5,138
Equity reserve - 66 -
Merger reserve 1,508 1,508 1,508
Accumulated deficit (1,989) (3,597) (2,471)
___________ ___________ __________
Total equity 5,229 (845) 4,746
___________ ___________ __________
Non-current liabilities
Convertible loan notes - 4,879 -
Lease liabilities 566 1,001 762
Deferred revenue 240 370 420
___________ ___________ __________
806 6,250 1,182
___________ ___________ __________
Current liabilities
Lease liabilities 352 328 350
Trade and other payables 1,444 1,663 1,920
Deferred revenue 3,534 2,946 4,808
___________ ___________ __________
5,330 4,937 7,078
___________ ___________ __________
Total liabilities 6,136 11,187 8,260
___________ ___________ __________
Total equity and liabilities 11,365 10,342 13,006
___________ ___________ __________
Consolidated Statement of
Changes in Equity
Share Share Equity Merger Accumulated Total
capital premium reserve reserve deficit equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 April 2021 571 5,138 - 1,508 (2,471) 4,746
Purchase of own shares - - - - (128) (128)
Issue of new shares 1 - - - - 1
Employee share option plan
charge - - - - 58 58
Employee share incentive
plan charge - - - - 13 13
Profit for the period and
total comprehensive income - - - - 539 539
________ ________ ________ ________ __________ _______
At 30 September 2021 572 5,138 - 1,508 (1,989) 5,229
At 1 April 2020 505 673 66 1,508 (4,133) (1,381)
Purchase of own shares - - - - (14) (14)
Proceeds from recycling
of own shares - - - - 26 26
Employee share option plan
charge - - - - 45 45
Employee share incentive
plan charge - - - - 38 38
Profit for the period and
total comprehensive income - - - - 441 441
________ ________ ________ ________ _________ _______
At 30 September 2020 505 673 66 1,508 (3,597) (845)
At 1 April 2020 505 673 66 1,508 (4,133) (1,381)
Purchase of own shares - - - - (29) (29)
Issue of new shares on conversion
of convertible loan notes 66 4,465 (60) - - 4,471
Reversal of equity component
following redemption of
convertible loan notes - - (6) - - (6)
Proceeds from recycling
of own shares - - - - 26 26
Employee share option plan
charge - - - - 88 88
Employee share incentive
plan charge - - - - 48 48
Profit for the period and
total comprehensive income - - - - 1,529 1,529
________ ________ ________ ________ __________ _______
At 31 March 2021 571 5,138 - 1,508 (2,471) 4,746
Consolidated Cash Flow Statement
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2021 2020 2021
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Profit for the period 539 441 1,529
Taxation (416) (438) (425)
Finance income (5) (3) (9)
Finance costs 53 295 494
Depreciation of property, plant &
equipment 35 31 60
Depreciation of right of use assets 115 129 255
Exchange losses / (gains) on foreign
currency lease liabilities 10 (31) (74)
Employee share option plan charge 58 45 88
Employee share incentive plan charge 13 38 48
Employee unit incentive plan charge 24 25 30
Decrease in trade and other receivables 2,313 3,810 1,078
(Decrease) / increase in trade and
other payables (500) 5 357
(Decrease) / increase in deferred
revenue (1,454) (1,035) 877
____________ ____________ __________
Cash generated from operations 785 3,312 4,308
Finance income 8 6 12
Finance costs on convertible loan
notes - (199) (445)
Finance costs on leases (32) (48) (65)
Tax (paid) / received (17) 438 425
____________ ____________ __________
Net cash generated from operating
activities 744 3,509 4,235
____________ ____________ __________
Investing activities
Purchases of property, plant and
equipment (15) (21) (95)
____________ ____________ __________
Cash used in from investing activities (15) (21) (95)
____________ ____________ __________
Financing activities
Purchase of own shares (128) (14) (29)
Proceeds from recycling of own shares - 26 26
Principal elements of lease payments (168) (163) (338)
Repayment of convertible loan notes - - (450)
____________ ____________ __________
Cash used in financing activities (296) (151) (791)
____________ ____________ __________
Net increase in cash and cash equivalents 433 3,337 3,349
Cash and cash equivalents at the
beginning of the period 8,029 4,758 4,758
Exchange gain / (loss) on cash and
cash equivalents 29 (28) (78)
____________ ____________ __________
Cash and cash equivalents at the
end of the period 8,491 8,067 8,029
____________ ____________ __________
Notes to the Consolidated Accounts
For the period ended 30 September 2021
1 Preparation of the interim financial statements
These interim financial statements have been prepared in
accordance with International Accounting Standards in conformity
with the requirements of the Companies Act 2006 and with those
parts of the Companies Act 2006 applicable to companies reporting
under International Financial Reporting Standards (IFRS).
The basis of preparation and accounting policies used in
preparation of these interim financial statements have been
prepared in accordance with the same accounting policies set out in
the Group's Annual Report for the year ended 31 March 2021, which
provides full details of significant judgements and estimates used
in the application of the Group's accounting policies. There have
been no significant changes to these judgements and estimates
during the period which included an assessment that the going
concern basis continues to be appropriate in preparing the interim
financial statements.
These interim financial statements have not been audited and do
not constitute statutory accounts as defined in Section 434 of the
Companies Act 2006. Statutory accounts for the year ended 31 March
2021 have been delivered to the Registrar of Companies. The
Auditors' Report on those accounts was unqualified and did not
contain any statement under Section 498 (2) or (3) of the Companies
Act 2006.
The Interim Report will be mailed to shareholders within the
next few weeks and copies will be available on the website
(www.intercede.com) and at the registered office: Intercede Group
plc, Lutterworth Hall, St Mary's Road, Lutterworth, Leicestershire,
LE17 4PS.
2 Revenue
All of the Group's revenue, operating profits and net assets
originate from operations in the UK. The Directors consider that
the activities of the Group constitute a single business
segment.
The split of revenue by geographical destination of the end
customer can be analysed as follows:
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2021 2020 2021
GBP'000 GBP'000 GBP'000
UK 69 66 115
Rest of Europe 503 509 1,061
Americas 3,872 3,867 9,095
Rest of World 411 320 690
___________ ___________ __________
4,855 4,762 10,961
___________ ____________ __________
3 Taxation
Taxation represents the net effect of amounts receivable from
HMRC in respect of R&D claims and US corporation tax
payable.
4 Earnings per share
The calculations of earnings per ordinary share are based on the
profit for the period and the weighted average number of ordinary
shares in issue during each period.
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2021 2020 2021
GBP'000 GBP'000 GBP'000
Profit for the period 539 441 1,529
___________ ___________ __________
Number Number Number
Weighted average number of shares
- basic 57,107,449 50,482,281 51,359,410
- diluted 59,760,815 53,183,844 54,049,938
___________ ___________ __________
Pence Pence Pence
Earnings per share
- basic 0.9p 0.9p 3.0p
- diluted 0.9p 0.8p 2.8p
___________ ___________ __________
The weighted average number of shares used in the calculation of
basic and diluted earnings per share for each period were
calculated as follows:
6 months ended 6 months ended Year ended
30 September 30 September 31 March
2021 2020 2021
Number Number Number
Issued ordinary shares at start
of period 57,143,357 50,523,926 50,523,926
Effect of treasury shares (93,285) (41,645) (41,645)
Effect of issue of ordinary
share capital 57,377 - 877,129
___________ ___________ __________
Weighted average number of shares
- basic 57,107,449 50,482,281 51,359,410
___________ ___________ __________
Add back effect of treasury
shares 93,285 41,645 41,645
Effect of share options in issue 2,560,081 2,659,918 2,648,883
Effect of convertible loan notes
in issue - - -
___________ ___________ __________
Weighted average number of shares
- diluted 59,760,815 53,183,844 54,049,938
___________ ___________ __________
The effect of issue of ordinary share capital reflects the issue
of 100,000 shares to facilitate the exercise of options by senior
managers in June 2021 and the issue of 6,619,431 shares during the
period 5 January to 19 February 2021 to facilitate the conversion
of convertible loan notes into ordinary shares.
The convertible loan notes were anti-dilutive and therefore
excluded from the calculation of diluted profit per share. Had the
convertible loan notes been dilutive in nature, this would have
increased the comparative 2021 and 2020 weighted average number of
shares by 6,295,925 and 7,273,387 respectively.
5 Dividend
The Directors do not recommend the payment of a dividend.
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END
IR VLLFLFFLZFBZ
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