TIDMAQX
RNS Number : 3978Y
Aquis Exchange PLC
09 September 2020
9 September 2020
Aquis Exchange PLC
("Aquis", the "Company" or the "Group")
Interim results for the six months ended 30 June 2020
Continued strong growth and first period of profit
Aquis Exchange PLC (AQX.L), the exchange services group, is
pleased to announce its unaudited results for the six months ended
30 June 2020.
Highlights:
-- Revenue increased 42% to GBP4.9 million (1H19: GBP3.4 million)
-- EBITDA of GBP0.54 million (1H19: GBP0.18 million loss)
-- Profitability reached for the first time with a profit after
tax of GBP16,000 (1H19: GBP623,000 loss)
-- Cash and cash equivalents at 30 June 2020 of GBP11.2 million
(30 June 2019: GBP11.2 million)
-- Market share of all pan-European trading rose to 4.51% (1H19:
3.56%), despite the increased volatility
driving significant additional proprietary trading
-- The share of available liquidity increased further to 21% (1H19: 19%)
-- Following approval from the FCA, the acquisition of Aquis
Stock Exchange (AQSE) was completed on 11 March 2020 (formerly NEX
Exchange)
-- Integration into the Group progressing well
-- Cost savings derived from synergies ahead of management expectations so far
-- Three new companies quoted on AQSE since acquisition, one of which was post-period end
Post-period highlights:
-- Current trading in line with market expectations for the full
year, although we recognise the volatility
of licensing contracts and their timing in this climate and their potential effect on revenues
-- Plans to enhance Aquis Stock Exchange announced:
-- Segmenting the market
-- Gaining greater institutional and asset manager support
-- Prohibiting short selling
-- Enhancing trading mechanisms
Alasdair Haynes, Chief Executive Officer of Aquis,
commented:
"We are pleased to announce our first period of profitability,
reached through further strong revenue growth. This growth has been
driven by our existing Members continuing to increase their trading
volumes through our pan-European lit equities market.
The completion of the acquisition of Aquis Stock Exchange in
March was a milestone for the Group and marked a significant step
towards achieving our ambition to become the leading exchange
services group in Europe. We have now entered the primary listings
market, with exciting plans in motion to further build AQSE into
the first choice for quality growth businesses.
Despite the impact of Covid-19 on the global economy and
business confidence, Aquis has maintained a robust competitive
position in the marketplace and has successfully operated almost
entirely remotely since March, highlighting the flexibility and
resilience of the business.
While we anticipate the prevailing economic uncertainty will
continue to impact market participants in the short to medium term,
we have proven we have the right model, team, technology and vision
to deliver shareholder value and look to the future with
confidence."
The Company is hosting a webinar for retail investors at 11.30am
on Friday 11 September 2020. If you would like to attend this
presentation, please register using the following link:
http://bit.ly/AQX_H1202_piworldwebinar
This announcement contains inside information for the purposes
of EU Regulation 596/2014.
Enquiries:
Aquis Exchange PLC Tel: +44 (0)20 3597
6321
Alasdair Haynes, CEO
Jonathan Clelland, CFO and COO Belinda Tel: +44 (0)20 3597
Keheyan, Head of Marketing 6329
Liberum Capital Limited (Nominated Adviser Tel: +44 (0)20 3100
and Broker) 2000
Clayton Bush
Chris Clarke
Edward Thomas
Kane Collings
Alma PR (Financial PR Adviser) Tel: +44 (0)20 3405
0209
Susie Hudson aquis@almapr.co.uk
Rebecca Sanders-Hewett
Caroline Forde
Notes to editors:
Aquis Exchange PLC is an exchange services group, which operates
a pan-European cash equities trading business (Aquis Exchange) and
develops and licenses exchange software to third parties (Aquis
Technologies).
Aquis Exchange PLC (AQX.L) is quoted on the London Stock
Exchange's Alternative Investment Market (AIM).
Aquis Exchange is authorised and regulated by the UK Financial
Conduct Authority and France's Autorité des Marchés Financiers to
operate Multilateral Trading Facility businesses in the UK and in
EU27 respectively.
Aquis operates a lit order book and does not permit aggressive
non-client proprietary trading, which has resulted in lower
toxicity and signalling risk on Aquis than other trading venues in
Europe. According to independent studies, trades on Aquis are less
likely to lead to price movement than on other lit markets. Aquis
applies a subscription pricing model which works by charging users
according to the message traffic they generate, rather than a
percentage of the value of each security that they execute. This
model can significantly reduce the cost of trading.
Aquis Technologies is the software and technology division of
Aquis Exchange PLC. It creates and licenses cutting-edge,
cost-effective matching engine and trade surveillance technology
for banks, brokers, investment firms and exchanges.
Aquis Stock Exchange (AQSE) is a UK-based stock market providing
primary and secondary markets for equity and debt products. It is
permissioned as a Recognised Investment Exchange, which allows it
to operate a regulated listings venue.
For more information, please go to www.aquis.eu and
www.aquis.technology
Chief Executive Officer's Report
The six months to 30 June 2020 have been another strong period
of growth and we are very pleased to have recorded our first period
of profit. Alongside this we have maintained our competitive
position in the market and made good operational progress to help
drive us forward towards our long-term goals. The fact that we have
achieved all this amidst the challenging economic circumstances
arising from the global Covid-19 pandemic demonstrates our strong
operational resilience and the continued demand for our unique
offering.
A highlight of the Group's growth journey so far was the
announcement of the completion of the acquisition of Aquis Stock
Exchange in March 2020 and we have been rapidly developing the
market since. The acquisition has further strengthened our position
by allowing us to access new opportunities in the primary listings
market and we are excited to build it into a true home for quality
growth businesses, aligning it with Aquis' overall strategy and
vision. Our planned enhancements for the market, following a
consultation process, have now been formulated and are laid out in
further detail below. So far we have been very pleased with the
progress made, with cost savings derived from synergies between our
business activities ahead of management expectations and with the
transfer of the business onto the core Aquis technology platform
scheduled for mid-September.
Covid-19 Update
As previously communicated, the Group had well-established
remote working policies and disaster recovery plans, which were put
into practice in March as a result of Covid-19. The market has been
successfully operating almost entirely remotely since. Thanks to
our focus on technology and in line with being a relatively small
and agile operation, we have continued to serve our clients
effectively whilst also pushing ahead with key strategic
initiatives. Whilst the uncertainty and market turmoil has
inevitably impacted decision making processes in the industry, we
are pleased to have made significant progress with our KPIs (see
below) and delivered our first period of profitable trading.
During the early weeks of the pandemic we saw greatly increased
market volumes, which had a positive short-term impact. Since then
trading levels have been closer to historic averages.
It is difficult to predict the medium to long term impact on the
financial industry and more particularly equity market trading
volumes, however, our business model continues to show its strength
and we are confident we have the right strategy in place to
continue delivering significant growth over the long term.
Operational Review
Aquis continued to develop its three complementary business
activities throughout the period: its pan-European lit equities
market: a multi-asset class technology licensing service to an
international client base, a market data offering and, as of March,
a fourth activity with our primary listings market for small and
mid-cap companies. All activities have contributed to the
significant growth experienced in the period and this is set to
continue as synergies are developed and business potential is
harnessed.
We continue to invest in key personnel in all areas, who will be
instrumental in the business development process. The strength,
experience and commitment of our staff, who have also demonstrated
a commendable ability to adapt to the strange and unforeseen
circumstances in the current environment, continue to be a
significant contributor to our success.
We were also delighted to announce, post period, that the
University of Derby has secured funding for a new knowledge
transfer partnership with Aquis, in which we will collaborate on a
research and development project based around machine learning,
artificial intelligence and market surveillance. We firmly believe
that this is where the future of surveillance lies and our
philosophy at Aquis is to be always at the cutting edge of
innovation.
A summary of progress in each of our business activities is
outlined below.
Aquis Exchange
Continued strong growth in the core business
The key performance indicators of the Aquis Exchange business
grew during the period. Exchange revenue increased by GBP1.0m (37%)
from GBP2.7 million to GBP3.7 million and the number of Members
grew from 30 to 31. In addition, a number of Members increased
their trading volumes resulting in increased monthly subscriptions.
This occurred against the backdrop of increased turbulence and
uncertainty in financial markets as a result of Covid-19, which saw
an increase in volatility and overall trading levels amid growing
unease regarding the global economic outlook. Aquis Exchange's
market share of all pan-European trading was at 4.51% (1H19:
3.56%), despite the increased volatility which drove significant
additional proprietary trading and subsequently impacted auction
performance.
The Company currently has an offering in excess of 1,500 stocks
and ETFs across 14 European markets, an increase year on year.
Available liquidity on the exchange further increased to 21% in
1H20 (19% in 1H19) and it is expected this will underpin future
anticipated growth.
The Group's Market at Close product ("MaC") has continued to
attract interest since its launch in August 2019. It reached 3.52%
of total pan-European auction volumes in December last year and, on
average, achieved 3.61% in the first half of 2020 despite the
challenging circumstances. Since the period end, MaC volumes have
strengthened further.
The recognition that Aquis Exchange's toxicity is materially
lower than its competitors continues to grow amongst investment
managers and the wider market. With several market drivers pushing
market participants towards lower toxicity, the opportunity for
Aquis Exchange to attract a wider membership from across Europe and
to facilitate increased trading volumes remains significant.
Aquis Stock Exchange
Building the home for quality growth businesses
AQSE is a modern market for modern business, bringing positive
disruption and competition to the listed SME sector. It champions
entrepreneurship, investment and growth. Innovation drives its
thinking, regulation underpins its products and service culture
guides its behaviour. It uses superior technology to deliver better
results for all participants.
As one of the only two existing options for growing SMEs looking
to IPO in the UK, Aquis' vision is for AQSE to become the home for
quality growth businesses, applying core Aquis values such as
transparency and innovation.
AQSE has committed to enhancing the market through the following
four key actions:
1. Segmenting the market
- providing appropriate support throughout the growth cycle
2. Gaining greater institutional and asset manager support
3. Prohibiting short selling
- protecting issuers and investors
4. Enhancing trading mechanisms
- supporting greater liquidity
These enhancements have been developed following our recent
market consultation process, which saw a broad range of
stakeholders taking part including issuers, investors, corporate
advisers, lawyers, accountants, brokers, market makers institutions
and industry think tanks.
A video providing further detail is available to view on the
Company's website here: https://bit.ly/2QPC578. A further
consultation on rule book changes took place across July and
August, with the new policies anticipated to go live in Autumn this
year.
Since acquisition, AQSE has been undergoing migration onto the
Aquis trading platform and surveillance systems, with harmonisation
in systems and processes being the first step in aligning the
business with Aquis' strategic objectives.
Three listings have been completed since acquisition, in the
beverages, industrial engineering and health care equipment &
services sectors. All were well supported and there is an
encouraging pipeline of businesses in conversation with AQSE
regarding IPO.
As previously communicated, the Group remains committed to
significantly reducing the loss generated by AQSE in the near term
and good progress has been made in achieving the anticipated cost
synergies, ahead of Management's original expectations.
Aquis Technologies
Revenue increased despite challenging market conditions
Aquis licenses its leading exchange-related technology through
its Aquis Technologies division. Aquis Technologies creates and
licenses technology for high volume, low latency trading platforms,
complex connectivity solutions and real-time trade monitoring and
surveillance systems for banks, brokers, investment firms and
exchanges.
Despite the challenging market for new sales created by the
Covid-19 pandemic, Aquis Technologies' revenue grew to GBP0.79m
(1H19: GBP0.70m), driven by new licencing and support contracts,
alongside revenue from the delivery of a number of implementations
across a variety of asset classes, mandated in previous periods.
Clients and prospects' decision processes have been delayed due to
the Covid-19 pandemic but in the medium term this should improve as
conditions begin to normalise.
Aquis will be focused on furthering the growth of the
Technologies division, developing its products and services to help
its clients with the challenges they face and ensuring the
high-performance systems continue to be enhanced.
Aquis Market Data
Revenue from market data vendors more than doubled from GBP0.15m
to GBP0.37m for the 6-month period compared to the 2019 equivalent.
The consolidation of AQSE has helped to boost data revenues and the
number of data vendors on the Aquis Exchange.
Financial Review
Revenue increased 42% to GBP4.9m (1H19: GBP3.4m) and the EBITDA
profit for the half year was GBP0.54m, which compares to an EBITDA
loss of GBP0.18m in 1H19. This EBITDA profit and the profit after
tax of GBP16,000 includes income recognised from an GBP183,000
impairment credit per IFRS 9. The EBITDA profit growth is mainly
attributable to increased exchange revenue as Members'
subscriptions have risen as a result of increased trading levels.
The Group made some controlled increases in costs during 1H 2020 as
it continues to invest in personnel and technological resources and
the Group will continue to invest on a controlled basis going
forward.
The Company's cash and cash equivalents as at 30 June 2020 were
GBP11.2 million (30 June 2019: GBP11.2 million), demonstrating its
continued focus on careful cash management.
Summary
Our strategic goal is to become one of the leading exchange
services groups through delivering best-in-class exchange trading
opportunities, underpinned by our commitment to first class client
service. To this end, our investment in R&D will help improve
the trading experience for clients, as well as improving our market
position and providing further growth and value creation for
shareholders. Having made a significant amount of investment in the
first half, we will see the full impact flow through into the full
year.
Alongside this we are working to enhance our software licensing
activities and build presence internationally.
AQSE has been successfully integrated into the business and we
are in the process of building it into a quality home for growth
companies. This will include a business development process
focussing in particular on listing opportunities and synergies with
Aquis Exchange activities, supported by an investment in key
personnel.
Looking forward, our focus continues to be on executing on our
core growth strategy; increasing trading volumes and improving
fundraising prospects for small and mid-cap companies. Although
uncertainty understandably continues to weigh on decision making we
have already proven ourselves to be able to adapt to adversity and
proactively seek out new opportunities.
Notwithstanding the macroeconomic uncertainty, current trading
is in line with market expectations for the full year. I am
confident that with our philosophy of fairness, transparency and
simplicity, we have a winning formula. We have a strong team,
experienced management and a cutting-edge technology platform. We
are well placed to continue on our successful journey.
Alasdair Haynes
Chief Executive Officer
Condensed consolidated statement of comprehensive income for the
six-month period ended 30 June 2020
6 months 6 months
ended Year ended ended
30/06/2020 31/12/2019 30/06/2019
Note GBP'000 GBP'000 GBP'000
Income Statement
Revenue 3 4,851 6,892 3,419
Impairment credit 4 183 243 120
Administrative expenses (4,497) (7,334) (3,722)
Operating profit/(loss) 537 (199) (183)
Investment income 5 14 42 21
Depreciation and amortisation 7,8 (522) (928) (439)
Net finance costs 16 (17) (41) (20)
Net profit (loss)
before taxation 12 (1,126) (621)
Income tax credit/(expense) - 265 -
Profit/(loss) for
the period 12 (861) (621)
============ ============ ============
Other comprehensive
income
Items that may be
reclassified subsequently
to
profit or loss:
Foreign exchange differences
on translation of
foreign operations,
net of tax 15 4 1 (2)
Other comprehensive profit
/ (loss) for the period 4 1 (2)
Total comprehensive profit
/ (loss) for the period 16 (860) (623)
============ ============ ============
Earnings per share
(pence) 6
Basic
Ordinary shares 0 (3) (2)
Diluted
Ordinary shares 0 (3) (2)
The consolidated statement of comprehensive income has been
prepared on the basis that all operations are continuing
operations.
Condensed consolidated statement of financial position as at 30
June 2020
6 months
6 months Year ended ended
ended 30/06/2020 31/12/2019 31/12/2019
Note GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Intangible assets 7 815 753 695
Property, plant and equipment 8 1,612 2,014 1,900
Trade and other receivables 9 947 967 862
3,374 3,734 3,457
Current assets
Trade and other receivables 9 2,742 1,654 2,152
Cash and cash equivalents 11,182 11,011 11,212
13,924 12,665 13,364
Total assets 17,298 16,399 16,821
------------------ ------------ ------------
Liabilities
Current liabilities
Trade and other payables 10 2,329 1,500 1,650
Non-current liabilities
Lease liabilities 16 1,092 1,190 1,283
Total liabilities 3,421 2,689 2,933
------------------ ------------ ------------
Net assets 13,877 13,710 13,888
================== ============ ============
Equity
Called up share capital 11 2,717 2,715 2,715
Share premium account 12 10,892 10,840 10,840
Other reserves 13 311 213 153
Retained earnings/accumulated
losses 14 (47) (59) 182
Foreign currency translation
reserve 15 4 1 (2)
Total equity 13,877 13,710 13,888
================== ============ ============
The notes to the financial statements on pages 7 to 16 form an
integral part of these financial statements. The interim financial
statements were approved by the board of directors and authorised
for issue on 8(th) September 2020 and are signed on its behalf
by:
J Clelland A Haynes
Director Director
Company Registration No. 07909192
Condensed consolidated statement of changes in equity for the
period ended 30 June 2020
Note Share Share Other Retained Foreign Total
Capital Premium Reserves Earnings Currency
Translation
Reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
January 2019 2,715 10,840 92 803 - 14,450
-
Loss for the 6-month
period ended 30/06/2019 - - - (621) - (621)
Foreign exchange
differences on
translation of
foreign operations - - - - (2) (2)
Movement in share
option reserve - - 61 - - 61
Balance at 30
June 2019 2,715 10,840 153 182 (2) 13,888
Loss for the 6-month period ended
31/12/2019 (241) (241)
Foreign exchange
differences on
translation of
foreign operations 3 3
Movement in share option
reserve 60 60
Balance at 31 December
2019 2,715 10,840 213 (59) 1 13,710
Profit for the 6-month period
ended
30/06/2020 12 12
Foreign exchange
differences on
translation of
foreign operations 15 3 3
Movement in share
option reserve 13 98 98
Issue of new
shares 11,12 2 52 54
Balance at 30
June 2020 2,717 10,892 311 (47) 4 13,877
========= ========= ========== ========== ============= ========
Condensed consolidated statement of cash flows for the period
ended 30 June 2020
Note 6 months Year 6 months
ended ended ended
30/06/2020 31/12/2019 30/06/2019
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Cash generated/absorbed by
operations 17 568 386 62
Tax refunded - 265 -
Finance expense on lease liabilities 16 (17) (48) (24)
Net cash inflow from operating
activities 552 603 38
------------ ------------ ------------
Investing Activities
Recognition of intangible
assets 7 (311) (562) (281)
Purchase of property, plant
and equipment 8 (44) (509) (181)
Interest received 5 14 42 21
Net cash used in / generated by
investing activities (341) (1,029) (441)
------------ ------------ ------------
Financing Activities
Proceeds from share issue 11,12 54
Principal portion of lease
liability 16 (98) (183) -
Net cash (used in)/ generated
by financing activities (44) (183)
------------ ------------ ------------
Net increase/(decrease) in cash
and cash equivalents 167 (609) (403)
Cash and cash equivalents at the
beginning of the period 11,011 11,619 11,610
Effect of exchange rate changes
on cash and cash equivalents 4 1 2
Cash and cash equivalents at the
end of the period 11,182 11,011 11,209
============ ============ ============
Notes to the financial statements
1. Basis of preparation of half-year report
This condensed consolidated interim financial report for the
half-year reporting period beginning 1 January 2020 and ending 30
June 2020 ("interim period") has been prepared in accordance with
Accounting Standard IAS 34 Interim Financial Reporting.
The interim report does not include all the notes of the type
normally included in an annual financial report. Accordingly, this
report is to be read in conjunction with the annual report for the
year ended 31 December 2019 and any public announcements made by
Aquis Exchange PLC ("Aquis" or the "Company") during the interim
reporting period.
The accounting policies adopted are consistent with those of the
previous financial year and corresponding interim reporting
period.
2. Significant changes in the current reporting period
The financial position and performance of the group was
particularly affected by the following events and transactions
during the six months to 30 June 2020:
-- The consolidation of newly acquired subsidiary, Aquis Stock Exchange (AQSE); and
-- An increase in revenue as a result of an increase in exchange members and trading volumes.
During the interim period, the acquisition of NEX Exchange
Limited was approved by the FCA and was completed on 11(th) March
2020. The company was renamed Aquis Stock Exchange (AQSE) and has
been included in the Consolidated Financial Statements for the
Aquis Exchange PLC Group ("Group") for the period since
acquisition.
The coronavirus pandemic has had an unprecedented impact on
markets around the world in the first half of 2020. The principal
impact of the pandemic on the Group has been through increased
market volatility and a slower than expected pace of onboarding new
clients.
However, despite challenging market conditions during the six
months ended 30 June 2020, Aquis generated a profit of GBP12k,
largely the result of growing Exchange revenues.
3. Revenue
An analysis of the Group's revenue is as follows:
6 months Year Restated
ended ended 6 months
30/06/2020 31/12/2019 ended
30/06/2019
GBP'000 GBP'000 GBP'000
Exchange Fees 3,682 5,285 2,675
Licence Fees 607 1269 590
Issuer Fees 189 - -
Data Vendor Fees 373 338 154
4,851 6,892 3,419
------------ ------------ ------------
4. Expected credit loss
The expected credit loss on licensing contract assets has been
calculated in accordance with IFRS 9:
GBP'000
As at 31/12/2018 696
Expected credit loss reversal for
the period (120)
---------
As at 30/06/2019 576
Expected credit loss reversal for
the period (123)
---------
As at 31/12/2019 453
Expected credit loss reversal for
the period (183)
As at 30/06/2020 270
---------
5. Investment income
6 months Year 6 months
ended ended ended
30/06/2020 31/12/2019 30/06/2019
GBP'000 GBP'000 GBP'000
Interest income
Bank deposits 14 42 21
------------ ------------ ------------
6. Earnings per share
6 months Year 6 months
ended ended ended
30/06/2020 31/12/2019 30/06/2019
Number of Shares ('000)
Weighted average number
of ordinary shares for
basic earnings per share 27,158 27,150 27,150
Weighted average number
of ordinary shares for
diluted earnings per
share 28,043 27,714 27,710
Earnings (GBP'000)
Profit for the period
from continued operations 12 (862) (623)
Basic and diluted earnings
per share (pence)
Basic earnings per ordinary
share 0 (3) (2)
Diluted earnings per
ordinary share 0 (3) (2)
7. Intangible assets
GBP'000
Cost
As at 31/12/2018 1,493
Additions- internally generated 281
--------
As at 30/06/2019 1,774
Additions- internally generated 281
--------
As at 31/12/2019 2,055
Additions- internally generated 311
As at 30/06/2020 2,366
--------
Accumulated amortisation
and impairment
As at 31/12/2018 855
Charge for the period 224
--------
As at 30/06/2019 1,079
Charge for the period 223
--------
As at 31/12/2019 1,302
Charge for the period 249
As at 30/06/2020 1,551
--------
Carrying amount
As at 31/12/2018 638
As at 30/06/2019 695
As at 31/12/2019 753
As at 30/06/2020 815
--------
8. Property, plant and equipment
Fixtures, Computer Non-current Total
fittings Equipment portion
and equipment of IFRS
16 leased
assets
GBP'000 GBP'000 GBP'000 GBP'000
Cost
As at 31/12/2018 246 1,592 - 1,838
Additions & disposals - 302 - 302
As at 30/06/2019 246 1,894 1,271 3,411
Additions & disposals 3 203 - 207
As at 31/12/2019 249 2,097 1,271 3,617
Additions & disposals - 44 - 44
As at 30/06/2020 249 2,141 1,271 3,661
--------------- ----------- ------------ --------
Accumulated depreciation
and impairment
As at 31/12/2018 78 1,219 - 1,297
Charge for the period 24 103 87 214
As at 30/06/2019 102 1,322 87 1,511
Charge for the period 25 154 86 267
As at 31/12/2019 127 1,476 173 1,778
Charge for the period 25 161 87 273
As at 30/06/2020 152 1,637 260 2,049
--------------- ----------- ------------ --------
Carrying amount
As at 31/12/2018 169 373 - 542
As at 30/06/2019 144 572 1,184 1,900
As at 31/12/2019 122 621 1,098 1,841
As at 30/06/2020 97 504 1,011 1,612
--------------- ----------- ------------ --------
9. Trade and other receivables
Current
----------------------------------------
As at As at As at
30/06/2020 31/12/2019 30/06/2019
GBP'000 GBP'000 GBP'000
Trade receivables
net of impairment 2,204 1,481 1,712
Prepayments 340 166 254
Other receivables 198 7 186
2,742 1,654 2,152
------------ ------------ ------------
Non-Current
----------------------------------------
As at As at As at
30/06/2020 31/12/2019 30/06/2019
GBP'000 GBP'000 GBP'000
Trade receivables
net of impairment 729 752 650
Other receivables 218 215 212
947 967 862
------------ ------------ ------------
Trade receivables are stated net of any credit impairment
provision as set out previously in Note 3 in accordance with IFRS
9, as illustrated below:
As at As at As at
30/06/2020 31/12/2019 30/06/2019
(restated)
GBP'000 GBP'000 GBP'000
Gross trade receivables 3,283 2,686 2,938
Expected credit loss (350) (453) (576)
------------
Trade receivables
net of impairment 2,933 2,233 2,362
------------ ------------ ------------
Impairment includes the expected credit loss on licencing
contract assets stated in Note 4.
10. Trade and other payables
As at As at As at
30/06/2020 31/12/2019 30/06/2019
Trade payables 90 130 271
Accruals 968 1,053 954
Social security and
other taxation 370 174 107
Deferred revenue 709 - -
Other payables 192 142 318
------------ ------------ ------------
2,329 1,499 1,650
------------ ------------ ------------
11. Called up share capital
As at As at As at
30/06/2020 31/12/2019 30/06/2019
GBP'000 GBP'000 GBP'000
Ordinary share capital
Issued and fully paid
27,149,559 Ordinary shares of 10p
each 2,715 2,715 2,715
Issue of new shares following exercise
of 20,137 EMI share options 2
At 30/06/2020 2,717 2,715 2,715
------------ ------------ ------------
12. Share premium account
As at As at As at
30/06/2020 31/12/2019 30/06/2019
GBP'000 GBP'000 GBP'000
Share premium
At beginning of year 10,840 10,840 10,840
Issue of new shares following exercise 52 - -
of 20,137 EMI share options
At 30/06/2020 10,892 10,840 10,840
------------ ------------ ------------
13. Other Reserves
As at As at As at
30/06/2020 31/12/2019 30/06/2019
GBP'000 GBP'000 GBP'000
Movement in reserves 98 60 61
Reserves relating to
share-based payments 311 213 153
------------ ------------ ------------
The reserves relating to share-based payments reflects the
estimated value of the approved Employee Share Option Scheme and
Restricted Share Awards Scheme estimated using a US binomial option
valuation model.
14. Retained earnings
GBP'000
As at 31/12/2018 923
Adjustment arising due to IFRS
16 (120)
Adjusted opening balance as at
31/12/2018 803
Loss for the 6-month period ended
30/06/2019 (621)
As at 31/06/2019 182
Loss for the 6-month period ended
30/12/2019 (241)
As at 31/12/2019 (59)
Profit for the 6-month period
ended 30/06/2020 12
As at 30/06/2020 (47)
--------
15. Foreign currency translation reserve
Aquis Exchange PLC is regulated in the UK by the FCA but with
increasing uncertainty over the outcome of Brexit the Company
decided to establish a European subsidiary and in March 2019
successfully applied for regulatory approval to operate a
Multilateral Trading Facility (MTF) in France through this
subsidiary. The translation of the European subsidiary into the
functional currency of the Group results in foreign exchange
differences that have been recognised in Other Comprehensive Income
('OCI') for the Group which have been accumulated in a separate
component of equity as illustrated below.
6 months Year 6 months
ended ended ended
30/06/2020 31/12/2019 30/06/2019
GBP'000 GBP'000 GBP'000
At the beginning of the year/period - - -
Foreign exchange differences
on translation of foreign operations
recognised in OCI 4 1 (2)
At the end of the year/period 4 1 (2)
------------ ------------ ------------
16. IFRS 16 Leases
The impact on the Group's assets and liabilities, and the related effects on profit and loss, of the
Group's leasing activities
(the Group as a lessee) are detailed below.
Right of Use Asset
Property
GBP
--------------------------------- ---------
Carrying amount at 1 January
2019 1,444
Depreciation for the period (87)
Carrying amount at 30 June 2019 1,358
Depreciation for the period (87)
Carrying amount at 31 December
2019 1,271
Depreciation for the period (87)
Carrying amount at 30 June 2020 1,184
--------------------------------- ---------
Of which are:
Current 173
Non-current 1,011
1,184
--------------------------------- ---------
Rent deposit asset
Rent deposit
asset
GBP
--------------------------------- -------------
Carrying amount at 1 January
2019 215
Finance income on rent deposit
asset for the period 3
Carrying amount at 30 June 2019 218
Finance income on rent deposit
asset for the period 4
Carrying amount at 31 December
2019 222
Finance income on rent deposit
asset for the period 3
Carrying amount at 30 June 2020 225
--------------------------------- -------------
Of which are:
Current 7
Non-current 218
225
--------------------------------- -------------
Lease liability
Lease liability
GBP
------------------------------------ ----------------
Carrying amount at 1 January
2019 1,561
Finance expense on lease liability
for the period 24
Lease payments made during the
period (115)
Carrying amount at 30 June 2019 1,470
Finance expense on lease liability
for the period 24
Lease payments made during the
period (116)
Carrying amount at 31 December
2019 1,378
Finance expense on lease liability
for the period 21
Lease payments made during the
period (115)
Carrying amount at 30 June 2020 1,284
------------------------------------ ----------------
Of which are:
Current 192
Non-current 1,092
1,284
------------------------------------ ----------------
Net finance expense on leases
6 months Year 6 months
ended 30/06/2020 ended ended
31/12/2019 30/06/2019
GBP GBP GBP
------------------------------------ ------------------ ------------ ------------
Finance expense on lease liability 21 48 24
Finance income on rent deposit
asset (4) (7) (3)
Net finance expense relating
to leases 17 41 21
------------------------------------ ------------------ ------------ ------------
The finance income and finance expense arising from the Group's leasing activities as a lessee have
been shown net where applicable
as is permitted by IAS 32 where criteria for offsetting have been met.
Amounts recognised in profit and loss
6 months Year 6 months
ended 30/06/2020 ended ended
31/12/2019 30/06/2019
GBP GBP GBP
-------------------------------------- ------------------ ------------ ------------
Depreciation expense on right-of-use
assets (87) (173) (87)
Finance expense on lease liability (21) (48) (24)
Finance income on rent deposit
asset 3 7 3
Net impact of leases on profit
or loss (105) (214) (108)
-------------------------------------- ------------------ ------------ ------------
The total cash outflow for leases amounted to GBP115k in the 6 months to 30(th) June 2020.
17. Cash generated from operations
6 months Year Restated
ended ended 6 months
30/06/2020 31/12/2019 ended
30/06/2019
GBP'000 GBP'000 GBP'000
Profit / (loss) after tax 12 (862) (621)
Adjustments for:
Taxation - (265) -
Investment revenue (14) (42) (21)
Amortisation and impairment of
intangible assets 249 447 223
Depreciation and impairment of
property, plant and equipment 273 482 215
Equity settled share-based payment
expense 98 120 61
Other losses (29) (24)
Losses on transition of accounting
standards - (120) (224)
Movement in working capital:
Increase in trade and other receivables (850) 43 (329)
Increase in trade and other payables 829 607 758
Cash generated by operations 568 386 62
------------ ------------ ------------
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END
IR SSDFAAESSELU
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September 09, 2020 02:00 ET (06:00 GMT)
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