Intelligent Ultrasound Group
plc
Half Year Results
2024
Intelligent Ultrasound Group plc
(AIM: IUG), the 'classroom to clinic' ultrasound company,
specialising in artificial intelligence (AI) software and
simulation, announces its unaudited half year results to 30 June
2024.
Post period end on 18 July 2024, the Group announced that it had entered into
a conditional sale and purchase agreement for the sale of its
Clinical AI business (Intelligent Ultrasound Limited and certain
other clinical AI related assets) to GE HealthCare for an
enterprise value of £40.5 million on a cash free/debt free basis.
The proposed sale, that excludes the NeedleTrainer and
NeedleTrainer Plus products, was approved by shareholders on 6
August 2024 and is now only subject to regulatory approval expected
by the end of September with completion of the sale to follow in
October.
The results from the Clinical AI
business have been reported as a discontinued operation and the
remaining Simulation business (now including NeedleTrainer) as
continuing operations.
Positives in the first half of 2024
were:
·
ROW reseller sales growing 37% to £1.6m (H1 2023:
£1.1m)
·
NeedleTrainer revenues increased to £1.0m (H1
2023: £0.5m)
·
Administrative costs reduced by £0.1m to £4.0m (H1
2023: £4.1m) and include a number of cost savings across the
Group
·
Cash burn reduced significantly to £2.0m (H1 2023:
£3.8m) leaving cash as at 30 June 2024 of £1.0m (31 December 2023:
£3.0m)
However, revenue from continuing
operations in the first half of the year declined by 22% to
£4.5m (H1 2023: £5.8m). This results from a
decline in the UK and North American markets.
·
The decline in UK sales was expected, due to
previously flagged NHS budget pressure, reducing sales by 58% to
£0.8m (H1 2023: £1.9m)
·
However, the 23% decline in North America sales to
£2.2m (H1 2023: £2.8m) was not anticipated, with nearly £0.7m of
expected sales held in delivery backlog or purchase order
delays
The Group loss after tax for the
period was £2.0m (H1 2023: £1.2m), of which £1.3m (H1 2023: £0.5m)
relates to continuing operations and £0.7m (H1 2023: £0.8m)
relating to discontinued operations.
Riccardo Pigliucci, Chair of Intelligent Ultrasound
commented:
"We have spent the last seven years successfully creating
first-to-market AI products and have built a strong capability in
real-time automated ultrasound image analysis, so we are delighted
that our achievements have been recognised by GE
HealthCare.
The remaining Simulation Business had a difficult trading
period in the first half of this year with a material decline in
sales in the UK due to NHS budgeting constraints and a decline in
the US due to delivery backlog and purchase order delays. However,
going forward Simulation will be boosted by the inclusion of the
NeedleTrainer range previously reported in our Clinical AI
business, and the Board will use the time between signing and
completion to conduct a comprehensive review of the
business.
It
is the Board's intention to make a material return of capital
following a review of the growth potential and capital requirements
of the post-transaction business and is taking legal and tax advice
on structure of a return. An announcement detailing the proposed
use of funds and strategic direction for the Company is expected to
be made by the time the sale completes."
Enquiries:
|
Intelligent Ultrasound Group
plc
|
www.intelligentultrasound.com
|
|
Stuart Gall, CEO
|
Tel: +44 (0)29 2075 6534
|
|
Helen Jones, CFO
|
|
|
|
|
|
Cavendish Capital Markets
Limited
(Nominated advisor and
broker)
|
|
|
Giles Balleny (Corporate
Finance)
Nigel Birks (ECM)
Dale Bellis (Sales)
|
Tel: +44 (0)20 7397 8900
|
|
|
|
|
Cardew Group - PR
Advisors
|
Intelligentultrasound@cardewgroup.com
|
|
Allison Connolly
|
Tel: +44 (0)7587 453955
|
|
Emma Pascoe-Watson
|
Tel: +44 (0)7774 620415
|
|
Jessica Pilling
|
Tel: +44 (0)7918 584573
|
|
|
| |
About Intelligent Ultrasound Group
Intelligent Ultrasound (AIM:
IUG) is one of the world's leading 'classroom to clinic' ultrasound
companies, specialising in real-time hi-fidelity virtual reality
simulation for the ultrasound training market ('classroom') and
artificial intelligence-based clinical image analysis software
tools for the diagnostic medical ultrasound market ('clinic').
Based in Cardiff in
the UK and Atlanta in the US, the Group has two
revenue streams:
Simulation
Real-time hi-fidelity ultrasound
education and training through simulation. Our main products
are the ScanTrainer obstetrics and gynaecology training
simulator, the HeartWorks echocardiography training
simulator, the BodyWorks Eve Point of Care and
Emergency Medicine training simulator with Covid-19 module and the
new BabyWorks Neonate and Paediatric training simulator and now
includes NeedleTrainer that
teaches real-time ultrasound-guided needling and incorporates the
training version of ScanNav Anatomy PNB. To date over 1,700
simulators have been sold to over 800 medical
institutions around the world.
Clinical AI software
Deep learning-based algorithms to
make ultrasound machines smarter and more accessible using our
proprietary ScanNav ultrasound image analysis technology. Current
products on the market utilising this technology are GE
HealthCare's SonoLyst software that is incorporated in their
Voluson Expert, Signature and SWIFT
ultrasound machines; ScanNav Anatomy PNB that simplifies
ultrasound-guided needling by providing the user with real-time
AI-based anatomy highlighting for a range of medical
procedures.
www.intelligentultrasound.com
NOTE: ScanNav Anatomy PNB is CE
approved and cleared for sale in the US by the FDA but is not
available for sale in any other territory requiring government
approval for this type of product.
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE
2024
Sale of clinical AI business to GE
HealthCare
Post period end on 18 July 2024, the
Group announced that it had entered into a conditional sale and
purchase agreement for the sale of the Clinical AI business
(Intelligent Ultrasound Limited and certain other clinical AI
related assets) to GE HealthCare for an enterprise value of £40.5
million on a cash free/debt free basis. The proposed sale, which
excludes the NeedleTrainer and NeedleTrainer Plus products, was
approved by shareholders on 6 August 2024 and is now only subject
to regulatory approval expected by the end of September with
completion of the sale expected in October.
Transaction highlights:
· Sale
of the Clinical AI Business to GE HealthCare agreed for an
enterprise value of £40.5 million.
· Disposal excludes the NeedleTrainer/Trainer Plus product which
will be retained within the remaining Simulation
Business.
· The
Simulation Business generated total revenues of £10.0 million in
the financial year ended 31 December 2023 (including £0.8m relating
to the NeedleTrainer product).
· The
consideration represents an implied value of 12.4p per Ordinary
Share on current issued share capital and a premium of 70.9 per
cent to the Ordinary Share price on 17 July 2024 and a premium of
30.9 per cent to the volume weighted share price for the last 12
months. The Proposed Transaction also values the Clinical AI
Business at 33.8 times full year 2023 revenues of that
business.
· The
transaction is subject to confirmation from the Competition and
Markets Authority under the Enterprise Act, and the Investment
Security Unit under the National Security and Investment Act, that
they do not oppose the transaction.
· It is
the Board's intention to make a material return of capital
following a review of the growth potential and capital requirements
of the post-transaction business and taking legal and tax advice on
the structure of a return.
· An
announcement detailing the proposed use of funds and future
strategic direction for the post-transaction business is expected
to be made by the time of completion of the Proposed Transaction,
which, dependent on the timing of the Regulatory Consents, is
expected to be in October this year.
Full details on the sale can be
found in the 'Proposed disposal of the Clinical AI business'
Circular.
Continuing operations (Simulation including
NeedleTrainer)
Revenue
As we will be retaining the
NeedleTrainer products in the simulation portfolio post the GE
HealthCare transaction, we have reclassified the NeedleTrainer
revenue into the simulation revenue for H1 2024 and its comparative
period, H1 2023.
Simulation revenue (including
NeedleTrainer) in the first half of the year declined by 22% to
£4.5m (H1 2023: £5.8m).
This resulted from a decline in the
UK and North American markets:
·
The decline in UK sales was expected, due to
previously flagged NHS budget pressure, reducing sales by 58% to
£0.8m (H1 2023: £1.9m)
·
However, the 23% decline in North America sales to
£2.2m (H1 2023: £2.8m) was not anticipated, with nearly £0.7m of
expected sales held in either delivery backlog or purchase order
delays
Positives in the first half
were:
·
Reseller sales (ROW) increasing by 37% to £1.6m
(H1 2023: £1.1m), with growing sales into China, the Middle East
and Germany
·
NeedleTrainer related sales doubling to £1.0m
(2023: £0.5m)
Research and Development
In the period we focussed on
developing the:
·
HeartWorks cardiac updates to our BabyWorks 2.0
simulator
·
New needling functionality for our BodyWorks POCUS
simulator
·
New Endometriosis Plus Compact
simulator
·
Updates to NeedleTrainer including new video and
e-learning content and additional needle lengths
Discontinued operations (Clinical AI excluding
NeedleTrainer)
Revenue
Clinical AI related revenue
increased by 94% to £0.4m (H1 2023: £0.2m) and is based on sales of
three AI products:
·
Our ScanNav Assist AI technology drives GE
HealthCare's SonoLyst X/IR and SonoLystLive software, the world's first fully
integrated ultrasound AI tool that automatically and in real-time
recognises the 21 views recommended for fetal sonography imaging.
SonoLystLive is now a
standard feature on the Voluson Expert 22 and 20; and in April 2024
was launched as a standard on the new Voluson Signature 20
ultrasound machine. SonoLystLive is also an optional extra on the
Voluson Expert 18 and Signature 18 ultrasound machines and SonoLyst
X/IR is an optional extra on the SWIFT ultrasound
machines.
·
ScanNav Anatomy Peripheral
Nerve Block ("PNB") is our own CE and FDA
cleared, direct-to-market device, that simplifies ultrasound-guided
needling by providing the user with real-time AI-based anatomy
highlighting for a range of medical procedures.
·
ScanNav FetalCheck is a pre-regulatory approval AI
based software that enables an unskilled user to automatically
measure gestational age. It continues to be used in the largest
ever trial on the use of aspirin to prevent pre-eclampsia that is
being conducted in Kenya, Ghana and South Africa in a trial funded
by the Bill & Melinda Gates Foundation and led by the
international NGO Concept Foundation.
Board Changes
On completion of the GE HealthCare
transaction, Nicholas Sleep will be resigning as Director and
joining the GE HealthCare team. I would like to take this
opportunity to thank Nicholas for his drive and superb contribution
to building such a successful Clinical AI operation and adding so
much to the Group, both commercially and technically. He and his
excellent team will all be missed.
Operations
We continue to operate out of our
head office in the centre of Cardiff, the North America office in
Alpharetta, Georgia and warehouse operation
in Caerphilly. We successfully operate a flexible hybrid work
environment, whereby the majority of employees combine office and
at-home working that is appropriate to the Company and
employee.
Environmental, Social, and Governance (ESG)
In May we published our third ESG
report in the 2023 annual report and accounts. We continue to
instigate new initiatives to promote better employee and local
engagement and believe we are having a positive impact locally,
nationally and globally.
The full report can be viewed
here:
2023 Annual Report & Accounts
Financial Review
The sale of the Clinical AI business
to GE HealthCare has been classified as an Asset Held for Sale in
the balance sheet and presented as a discontinued operation in the
income statement in line with the requirements of IFRS 5 'Disposal
of subsidiaries, businesses and non-current assets'. The
comparatives have been restated as if the operation had been
discontinued from the start of the comparative period.
The assets and liabilities of the Clinical
AI business are presented separately on the balance
sheet.
Revenue
Continuing operations (Simulation including
NeedleTrainer)
Revenue declined by 22% (£1.3m) in
H1 2024 to £4.5m (H1 2023: £5.8m). Continuing operations include
revenue from NeedleTrainer which is remaining within the product
portfolio but was previously reported within the Clinical AI
business.
The majority of the decline in
simulation revenues was attributable to the UK market, where sales
were down £1.1m (58%) on last year to £0.8m (H1 2023: £1.9m) with
NHS budget availability still constrained. Sales in North America
also declined by 23% to £2.2m (H1 2023: £2.8m). Positively, sales
from resellers in the ROW region improved by 37% to £1.6m (H1 2023:
£1.1m).
With the decline in revenue, gross
profit for the period decreased by £0.9m to £2.6m (H1 2023
(restated*): £3.5m) and in addition the average gross margin
dropped to 57% (H1 2023 (restated): 61%) mainly due to the higher
proportion of reseller sales and product mix variances.
Discontinued operations (Clinical AI excluding
NeedleTrainer)
Revenues increased by 94% to £0.4m
(H1 23: £0.2m) mainly arising from growth in royalty income from
GEHC.
Administrative costs
|
|
H1
2024
|
H1
2023*
|
FY2023
|
|
Continuing operations
|
£m
|
£m
|
£m
|
|
Cash overheads
|
3.11
|
3.38
|
6.41
|
|
Non-cash costs
|
0.84
|
0.75
|
1.37
|
|
|
3.95
|
4.13
|
7.78
|
|
Discontinued operations
|
1.03
|
1.15
|
2.05
|
|
Total administrative
costs
|
4.98
|
5.28
|
9.83
|
*restated for discontinued
operations and a reclassification of distribution and direct labour
costs of £0.17m into cost of sales
Cash overheads relating to
continuing operations were £3.11m, £0.27m lower than the prior
period. This mainly arose from lower sales commissions and reduced
marketing and external R&D spend.
Overheads from discontinued
operations also decreased due to a decision to delay certain
R&D projects and other planned product marketing expenditures
as well as freeze recruitment and leavers replacements.
Loss after tax
The Group loss after taxation for
the period was £2.0m (H1 2023: £1.0m), £1.3m relating to continuing
operations and £0.7m to discontinued operations.
Balance Sheet
The Group's net assets at 30 June
2024 reduced by £1.7m to £8.0m (31 December 2023: £9.7m), mainly
relating to the cash burn in the period of £2.08m combined with
lower trade receivables of £0.5m associated with variations in
timing of invoicing in Q2 2024. Liabilities (excluding the £9.5m
intercompany loan included within the liabilities held for sale)
reduced by £0.9m to £2.3m (31 December 2023: £3.3m) due to lower
trade payables and accruals.
The assets and liabilities of the
Clinical AI business have been shown separately on the balance
sheet with the intercompany loan owed by the Clinical AI business
of £9.5m shown within liabilities held for sale and the associated
receivable in the remaining business shown within current
assets.
The 2023 R&D tax credit of £0.5m
is expected to be received in September.
Total lease liabilities decreased by
£0.1m to £0.6m (31 December 2023: £0.7m) with ongoing lease
payments reducing the amounts owed to the end of the lease
period.
The Group had cash and cash
equivalents of £1.0m at 30 June 2024 (31 December 2023: £3.0m), a
decrease of £2.0m in the period (H1 2023: £3.9m) and an improvement
of £1.8m compared to H1 2023 despite £0.3m higher operating cash
outflows of £0.9m (H1 2023: £0.6m). The prior period was
significantly impacted by higher working capital balances
associated with timings of trade receivables in Q4 and purchases of
inventory which resulted in net cash outflows from operating
activities of £2.7m. Net cash outflows in H1 2024 have reduced to
£1.5m with working capital movements. Cash outflows from investing
activities totalled £0.7m (H1 2023: £0.9m), of which £0.5m related
to capitalised R&D costs (H1 2023: £0.7m) and £0.2m of
additions to property, plant and equipment (H1 2023: £0.2m). The
net cash outflow from financing activities was £0.1m (H1 2023:
£0.2m), principally relating to lease payments.
Outlook
Having spent the last seven years
successfully creating first-to-market AI products and building a
strong capability in real-time automated ultrasound image analysis,
we are delighted that our achievements have been recognised by GE
HealthCare.
The remaining simulation business,
which had a difficult trading period in the first half of this
year, will be boosted by the inclusion of the NeedleTrainer range
previously reported in our Clinical AI business, and the Board will
use the time between signing and completion of the sale to GE
HealthCare to conduct a comprehensive review of the remaining
simulation business.
It is the Board's intention to make
a material return of capital following a review of the growth
potential and capital requirements of the post-transaction business
and taking legal and tax advice on structure of a return. An
announcement detailing the proposed use of funds and strategic
direction for the Company is expected to be made in October when
the sale of the clinical AI business to GE HealthCare is expected
to complete.
Stuart Gall
CEO
14 August 2024
CONSOLIDATED STATEMENT OF CASH FLOWS
|
|
|
|
Restated*
|
Restated*
|
|
|
|
|
Unaudited
6
months ended
30 June
2024
|
Unaudited
6
months
ended
30 June
2023
|
12 months
ended
31
December 2023
|
|
|
|
|
£'000
|
£'000
|
£'000
|
|
|
|
Loss before tax from continuing operations
|
(1,384)
|
(568)
|
(1,808)
|
|
|
|
Loss before tax from discontinued operations
|
(615)
|
(928)
|
(1,215)
|
|
|
|
Loss before tax
|
(1,999)
|
(1,496)
|
(3,023)
|
|
|
|
Add back:
|
|
|
|
|
|
|
Depreciation
|
332
|
306
|
629
|
|
|
|
Amortisation of intangible
assets
|
592
|
466
|
986
|
|
|
|
Net finance costs /
(income)
|
16
|
(4)
|
3
|
|
|
|
Share-based payments
expense
|
196
|
175
|
245
|
|
|
|
Operating cash flows before movement in working
capital
|
(863)
|
(553)
|
(1,160)
|
|
|
|
Movement in inventories
|
74
|
(267)
|
151
|
|
|
|
Movement in trade and other
receivables
|
239
|
(1,763)
|
(1,413)
|
|
|
|
Movement in trade and other
payables
|
(733)
|
(123)
|
20
|
|
|
|
Movement in provisions
|
20
|
-
|
-
|
|
|
|
Cash used in operations
|
(1,263)
|
(2,706)
|
(2,402)
|
|
|
|
Income taxes
(paid)/received
|
-
|
(2)
|
691
|
|
|
|
NET
CASH USED IN OPERATING ACTIVITIES
|
(1,263)
|
(2,708)
|
(1,711)
|
|
|
|
Continuing operations
|
(631)
|
(2,151)
|
(1,503)
|
|
|
|
Discontinued operations
|
(632)
|
(557)
|
(208)
|
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES
|
|
|
|
|
|
Purchase of property, plant and
equipment
|
(162)
|
(213)
|
(338)
|
|
|
Interest received
|
-
|
16
|
26
|
|
|
Internally generated and purchase of
intangible assets
|
(542)
|
(737)
|
(1,809)
|
|
|
|
NET
CASH USED IN INVESTING ACTIVITIES
|
(704)
|
(934)
|
(2,121)
|
|
|
|
Continuing operations
|
(436)
|
(669)
|
(1,094)
|
|
|
|
Discontinued operations
|
(268)
|
(265)
|
(1,027)
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES
|
|
|
|
|
|
|
Principal elements of lease
payments
|
(117)
|
(139)
|
(207)
|
|
|
|
Finance costs paid
|
(16)
|
(14)
|
(29)
|
|
|
|
NET
CASH USED IN BY FINANCING ACTIVITIES
|
(133)
|
(153)
|
(236)
|
|
|
|
Continuing operations
|
(133)
|
(153)
|
(236)
|
|
|
|
Discontinued operations
|
-
|
-
|
-
|
|
|
|
NET
DECREASE IN CASH AND CASH EQUIVALENTS
|
(2,100)
|
(3,795)
|
(4,068)
|
|
|
|
Continuing operations
|
(1,200)
|
(2,973)
|
(2,833)
|
|
|
|
Discontinued operations
|
(900)
|
(822)
|
(1,235)
|
|
|
|
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD
|
3,031
|
7,166
|
7,166
|
|
|
|
Exchange gains / (losses) on cash
and cash equivalents
|
20
|
(36)
|
(67)
|
|
|
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
951
|
3,335
|
3,031
|
|
|
|
|
|
|
|
| |
*Restated for Continuing and
Discontinued operations
NOTES TO THE CONSOLIDATED INTERIM REPORT
for
the six months ended 30 June 2024
1. BASIS OF
PREPARATION AND ACCOUNTING POLICIES
The financial information contained
in this interim report has not been audited by the Group's auditor
and does not constitute statutory accounts as defined in Section
434 of the Companies Act 2006. The Directors approved and
authorised this interim report on 13 August 2024. The financial
information for the preceding full year is extracted from the
statutory accounts for the financial year ended 31 December
2023. Those accounts, upon which the auditor issued an
unqualified opinion and did not include a statement under Section
498(2) or (3) of the Companies Act 2006, have been delivered to the
Registrar of Companies. The report drew attention by way of
emphasis to a material uncertainty related to going concern and
forecast performance of Clinical AI & Simulation divisions used
for the recoverability of intangible assets, investment value and
intercompany receivable.
This interim report has been
prepared in accordance with UK AIM Rules for Companies. The
Group has not applied IAS 34 "Interim Financial Reporting" (which
is not mandatory for AIM listed companies) in the preparation of
this interim report. The interim report has been prepared in
a manner consistent with the accounting policies set out in the
statutory accounts for the financial year ended 31 December
2023.
The comparative periods have been
restated to reclassify the results of the discontinued operations.
The H1 2023 income statement has also been restated for the change
in accounting policy to recognised distribution and direct labour
costs within cost of sales (see page 68 of the 2023 Annual Report
and Accounts for more detail). The restatement has not yet been
subject to audit.
The Company is a limited liability
company incorporated and domiciled in England & Wales and whose
shares are quoted on AIM, a market operated by The London Stock
Exchange. The Group financial statements are presented in pounds
Sterling.
Going concern
Post period end on 18 July 2024, the
Board announced it had entered into a conditional sale and purchase
agreement for the sale of its Clinical AI business (Intelligent
Ultrasound Limited and certain other clinical AI related assets) to
GE HealthCare. While the Group intends to return a substantial
portion of the proceeds to shareholders, it will retain some of
proceeds to strengthen the remaining Group's financial position.
The Group believes that the sale proceeds, together with its
existing resources, provide sufficient financial resources to meet
its liabilities as they fall due for at least the next twelve
months. In light of the foregoing, the Group's directors have a
reasonable expectation that the Group will continue as a going
concern for the foreseeable future.
Discontinued operations
The Group classifies an operation as
discontinued when it has disposed of or intends to dispose of a
business component that represents a separate major line of
business or geographical area of operations. The post-tax profit or
loss of the discontinued operations is shown as a single line on
the face of the consolidated statement of profit or loss, separate
from the continuing operating results of the Group. When an
operation is classified as a discontinued operation, the
comparative consolidated statement of profit or loss is represented
as if the operation had been discontinued from the start of the
comparative year. Expenses are presented as discontinued if they
will cease to be incurred on disposal of the discontinued
operation.
Assets and liabilities held for sale
Where the Group expects to recover
the carrying amount of a group of assets through a sale transaction
rather than through continuing use, and a sale is considered to be
highly probable at the reporting date, the assets are classified as
held for sale and measured at the lower of cost and fair value less
costs to sell. No depreciation or amortisation is charged in
respect of non-current assets classified as held for sale once the
classification has been made.
2. BASIS OF
CONSOLIDATION
The consolidated interim report
incorporates the results of the Company and its subsidiary
undertakings.
3. NEW
ACCOUNTING STANDARDS
Several amendments and
interpretations apply for the first time in 2024, but do not have
an impact on the interim condensed consolidated financial
statements of the Group.
4. REVENUE
ANALYSIS
The following table provides an
analysis of the Group's revenue by geography based upon location of
the Group's customers.
|
|
|
Restated*
|
Restated*
|
|
Period ended
|
Unaudited
6
months ended 30 June
2024
|
Unaudited
6 months
ended 30 June
2023
|
12
months ended 31 December
2023
|
|
|
£'000
|
£'000
|
£'000
|
|
Continuing operations
|
|
|
|
|
United Kingdom
|
818
|
1,899
|
2,769
|
|
North America
|
2,164
|
2,795
|
4,828
|
|
Rest of World
|
1,561
|
1,142
|
2,414
|
|
|
4,543
|
5,836
|
10,011
|
|
Discontinued operations
|
|
|
|
|
Rest of World
|
442
|
220
|
1,171
|
|
Intercompany royalty
income
|
(7)
|
(8)
|
(9)
|
|
|
4,978
|
6,064
|
11,173
|
*Restated for Continuing and
Discontinued operations
Clinical AI royalty income is
included in the regions but is based on the external customer's
invoicing country rather than the destination of the end
customer.
5.
TAXATION
|
|
|
Restated*
|
Restated*
|
|
|
Unaudited
6
months ended 30 June
2024
|
Unaudited
6 months
ended 30 June 2023
|
Unaudited
12 months ended 31 December 2023
|
|
|
£'000
|
£'000
|
£'000
|
|
Continuing operations
|
|
|
|
|
R&D tax credit
|
49
|
86
|
171
|
|
R&D tax credit relating to prior
periods
|
-
|
-
|
(19)
|
|
US corporation tax
|
-
|
(2)
|
-
|
|
|
49
|
84
|
152
|
|
Discontinued operations
|
|
|
|
|
R&D tax credit
|
-
|
-
|
-
|
|
R&D tax (charge)/credit relating
to prior periods
|
(44)
|
172
|
289
|
|
|
5
|
256
|
441
|
6.
DISCONTINUED OPERATIONS AND ASSET HELD FOR SALE
Post period end on 18 July 2024, the
Board announced it had entered into a conditional sale and purchase
agreement for the sale of its Clinical AI business (Intelligent
Ultrasound Limited and certain other clinical AI related assets) to
GE HealthCare for a consideration of £40.5m. Although the agreement
is subject to shareholder approval, which was obtained on 6 August
2024, the Group believed that it was highly probable that the
transactions would complete within 12 months of the date of the
announcement and so was classified as a disposal group held for
sale and a discontinued operation from the period end
date.
The results of the Clinical AI
discontinued operation business are presented below.
|
|
|
Unaudited
6
months
ended
30
June
2024
|
Unaudited
6 months
ended
30
June
2023
|
Restated*
12
months
ended
31
December
2023
|
|
|
|
£'000
|
£'000
|
£'000
|
|
REVENUE
|
4
|
442
|
220
|
1,171
|
|
Cost of sales
|
|
(23)
|
-
|
(291)
|
|
GROSS PROFIT
|
419
|
220
|
880
|
|
Administrative expenses
|
(1,034)
|
(1,148)
|
(2,095)
|
|
OPERATING LOSS
|
|
(615)
|
(928)
|
(1,215)
|
|
LOSS BEFORE TAXATION
|
|
(615)
|
(928)
|
(1,215)
|
|
Taxation
|
5
|
44
|
(172)
|
(289)
|
|
LOSS AFER TAX FROM DISCONTINUED
OPERATIONS
|
|
(659)
|
(756)
|
(926)
|
The major classes of assets and
liabilities classified as held for sale as at 30 June 2024 are, as
follows:
|
|
Unaudited
|
|
|
As at 30
June
2024
|
|
|
£'000
|
|
Assets
|
|
|
Intangible assets
|
1,640
|
|
Current tax asset
|
265
|
|
Trade and other
receivables
|
339
|
|
Assets held for sale
|
2,244
|
|
Liabilities
|
|
|
Trade and other payables
|
(83)
|
|
Accruals
|
(83)
|
|
Intercompany loans payable to other
group companies
|
(9,329)
|
|
Liabilities held for sale
|
(9,495)
|
|
Net liabilities held for
sale
|
(7,251)
|
7.
LOSS
PER SHARE
|
|
|
Restated*
|
Restated*
|
|
|
Unaudited
6
months ended 30 June
2024
|
Unaudited
6 months
ended 30 June 2023
|
12
months ended 31 December
2023
|
|
|
£'000
|
£'000
|
£'000
|
|
Loss from continuing
operations
|
(1,335)
|
(484)
|
(1,656)
|
|
Loss from discontinued
operations
|
(659)
|
(756)
|
(926)
|
|
Loss for the year after
taxation
|
(1,994)
|
(1,240)
|
(2,582)
|
|
Number of shares:
|
No.
|
No.
|
No.
|
|
Basic and diluted weighted average
number of ordinary shares
|
326,869,921
|
326,869,921
|
326,869,921
|
|
Basic and diluted loss pence per
share:
|
|
|
|
|
Continuing operations
|
(0.41)
|
(0.15)
|
(0.51)
|
|
Discontinued operations
|
(0.20)
|
(0.23)
|
(0.28)
|
|
|
(0.61)
|
(0.38)
|
(0.79)
|
In the periods ended 30 June 2024,
30 June 2023 and 31 December 2023 there were share options in issue
which could potentially have a dilutive impact, but as the Group is
loss making in all periods, they are anti-dilutive and therefore
the weighted average number of ordinary shares for the purpose of
the basic and dilutive loss per share is the same.
8.
CURRENT ASSETS - TRADE AND OTHER RECEIVABLES
|
|
Unaudited
As
at
30
June
2024
|
Unaudited
As
at
30
June
2023
|
Audited
As at 31
December
2023
|
|
|
£'000
|
£'000
|
£'000
|
|
Trade receivables
|
1,720
|
2,728
|
2,457
|
|
Other receivables
|
148
|
126
|
195
|
|
Prepayments
|
953
|
871
|
746
|
|
Loan due from Asset held for
sale
|
9,329
|
-
|
-
|
|
|
12,150
|
3,725
|
3,398
|
9.
CURRENT LIABILITIES - TRADE AND OTHER PAYABLES
|
|
Unaudited
As
at
30
June
2024
|
Unaudited
As
at
30
June
2023
|
Audited
As at 31
December
2023
|
|
|
£'000
|
£'000
|
£'000
|
|
Trade payables
|
798
|
1,053
|
1,235
|
|
Taxation and social
security
|
167
|
255
|
235
|
|
Other payables
|
-
|
1
|
103
|
|
Accruals
|
731
|
1,252
|
1,125
|
|
|
1,696
|
2,561
|
2,698
|
10.
SHARE CAPITAL
|
|
|
|
Allotted, issued and fully paid:
|
No.
|
£'000
|
|
Ordinary shares of 1p each
|
|
|
|
Balance at 1 January 2023 and 30
June 2023
|
326,869,921
|
3,269
|
|
Shares issued for cash
|
-
|
-
|
|
Balance at 31 December 2023 and 30
June 2024
|
326,869,921
|
3,269
|
11. INTERIM
ANNOUNCEMENT
A copy of this report will be posted
on the Company's website at Intelligent
Ultrasound.