TIDMATQT
RNS Number : 8715R
ATTRAQT Group PLC
11 March 2021
11 March 2021
Attraqt Group plc
("Attraqt", the "Group" or the "Company")
Full Year Results
Significant operational and strategic progress, well placed to
capitalise on favourable market dynamics
Attraqt Group plc (AIM: ATQT), a leading provider of online
search, merchandising and personalization solutions for ecommerce,
is pleased to announce its final results for the twelve months
ended 31 December 2020.
Financial Highlights:
-- Revenue up 8% to GBP21.0 million (2019: GBP19.4 million)
-- Gross margin up by 2% pts to 74% (2019: 72%)
-- SaaS revenue up 9% to GBP19.3 million (2019: GBP17.7 million)
o SaaS gross margin increased by 1 % pt to 80% (2019: 79%)
-- Services revenue remained flat at GBP1.7 million (2019: GBP1.7 million)
o Services gross margin up by 6 % pts to 9% (2019: 3%)
-- Adjusted EBITDA(1) of GBP1.1m (2019: GBP0.3m)
-- Statutory loss after tax of GBP2.2 million (2019: GBP4.0 million loss)
-- Basic EPS loss of 1.2p (2019: 2.7p loss)
-- Cash at period end of GBP6.6m (2019: GBP4.0m)
KPIs :
-- 38 multi-year renewals (2019: 21)
-- Exit annual recurring revenue ("ARR") of GBP21.1m (2019: GBP19.2m)
-- 29 new logos (2019: 22)
-- New bookings in the period of GBP4.7m (2019: GBP3.4m) achieving 2020 bookings plan
-- Net retention rate of 102% (2019: 98%)
-- Net promoter score of 29 (2019: 15)
Operational highlights:
-- Mark Adams appointed as Chief Executive Officer in June
-- Completed the acquisition of Aleph Search and associated GBP4m fund raising in October
o Accelerated the search product roadmap by an estimated two
years
o In-market performance and customer adoption have both been
strong
-- Continued investment in product development and innovation
-- Strength of platform shown with over 130 billion queries handled across the year
-- Built on partnership strategy, underpinning future growth
o Named certified partners of BigCommerce and commercetools
o Established a number of technology partnerships
o Signed eight digital agency and system integration
partnerships
(1. Adjusted EBITDA refers to earnings before interest, tax,
depreciation, amortisation, other income and foreign exchange,
share based payments and exceptional items.)
Mark Adams, Chief Executive Officer of Attraqt Group,
commented:
"In what has been a tumultuous year for everyone as a result of
the pandemic, we have faced challenges and seen new opportunities
appear. We have been able to make significant operational and
strategic progress, and are particularly pleased to have completed
the milestone acquisition of Aleph Search. Bringing Aleph's
leading-edge technology into our product set has accelerated our
search product roadmap by two years and is already providing
tangible results to customers. We were also pleased to achieve our
total bookings target for the year, albeit with the majority of the
activity falling in the second half of the year.
One of the most remarkable features of 2020 for us was the
acceleration in adoption of online retail with retailers and brands
prioritising investment in online channels, customer experience and
platform optimisation. Attraqt's offering is well placed to deliver
on these requirements, and this creates a significant opportunity
for us going forward. Whilst we remain cautious on our outlook for
2021 given the ongoing pandemic related uncertainty, our investment
in innovation alongside a re-focused sales organisation and an
evolved go to market approach means we are well placed to achieve
our long-term growth ambitions."
A video overview of the results from the CEO, Mark Adams is
available to watch here: https://bit.ly/ATQT_FY20_overview
For further enquiries please contact:
Attraqt Group plc Via Alma PR
Mark Adams, CEO
Eric Dodd, CFO
Canaccord Genuity (Nominated Adviser)
Simon Bridges
Adam James
Thomas Diehl +44 (0)20 7523 8000
Alma PR +44 (0)20 3405 0205
Susie Hudson attraqt@almapr.co.uk
Sam Modlin
Molly Gretton
About Attraqt Group plc
Attraqt powers exceptional shopping experiences for over 300 of
the world's leading brands, manufacturers and retailers. Attraqt
provides a set of API-enabled, algorithm-driven, intelligent SaaS
services covering personalization, search, navigation,
merchandising, recommendations and internationalization.
The platform unifies and empowers all key customer journey
stakeholders. Enabling business, data and technical teams to
successfully leverage existing eCommerce technology investments.
Ultimately ensuring individualized and connected micro-experiences
that support commerce discovery through to inspiration and
purchase, and beyond.
The Attraqt platform orchestrates AI models in real-time while
allowing clients to integrate their own algorithms. This helps
build true personalization strategies and creates differentiated
experiences at scale, so our customers can exceed the expectations
of today's shopper, while reaching commercial goals.
Attraqt is publicly listed on LSE: AIM and headquartered in
London, with offices in Amsterdam, Chicago, Paris, Sofia, Hamburg
and Sydney.
www.attraqt.com
Chairman's Statement
First and foremost, I would like to take this opportunity to
thank our team for their exceptional work this year. The pressures
of the pandemic, and remote working have presented unique
challenges and yet, across the Group, we have seen our people
continuing to tackle each day with enthusiasm, diligence and a
positive outlook. It has been an impressive response and underlines
why our team continues to be our most valuable asset.
2020 was year of significant strategic and operational progress
at Attraqt. The world dramatically changed as a result of Covid-19,
with the business moving quickly to adapt. The middle of the year
saw the appointment of Mark Adams as Chief Executive Officer
following a smooth hand-over and transition of leadership. The
Company also successfully completed the acquisition of Aleph Search
and associated fund raising. The Attraqt business of today has come
a long way from 2019 and we are now in excellent shape for
growth.
As has been widely reported, there was strong and sustained
growth in the adoption of online retail during the period. With
visits to the high street restricted for much of the year, we saw a
new wave of shoppers getting comfortable with eCommerce as well as
increased activity from existing online shoppers. Whilst there will
naturally be some shift back once the high street is reopened, the
trends seen during times when restrictions were relaxed this year
suggest that, going forward, a significant proportion of retail
will remain online. Success in this online channel is therefore
increasingly important for retailers and brand owners who are
investing in customer experience and performance optimisation.
Brands and retailers need online shopping solutions which are
not only leading-edge, but also scalable, robust, able to support
very high levels of throughput and activity. Attraqt has again
shown itself capable of that, with over 130 billion queries handled
during 2020.
Attraqt remains committed to delivering accelerated product
innovation. Following the acquisition of Early Birds in May 2019 we
continue to invest in innovation and product development and have
further accelerated our product roadmap through the acquisition of
Aleph Search in October. Aleph is an AI-powered search technology
that delivers a step improvement in search performance over
traditional methods. Although it is a relatively new addition to
our product stable, in-market performance and customer adoption
have both been strong. The acquisition was achieved through an
oversubscribed fund raise, and the Board and I would like to thank
again all our shareholders for their support.
Alongside this we made good progress against our strategic
priorities in the period. Our focus on servicing the needs of our
customers, plus an increased pace of innovation and delivery has
paid off, with 38 multi-year renewals signed and net customer
retention exceeding 100%.
Our new CEO, Mark Adams - who joined the business in June - has
built on the foundations put down by former CEO Luke McKeever. Mark
has brought an increased focus on execution, a valuable network and
deep eCommerce domain expertise to the team. It is remarkable the
impact that he has had on the business, despite having been working
remotely since his appointment. We are pleased that Luke McKeever
also remains with the business as a Non-Executive Director which
has assisted a smooth and effective transition. Together with the
rest of the Board and the Management Team we have a very talented
and capable group.
As we look to 2021, we are excited by the opportunity available
to us. eCommerce represents an increasingly large share of retail
industry sales and, as such can no longer be overlooked by
retailers of any size. Attraqt's value proposition is proven to be
able to help materially improve customer experience and site
performance. We operate in a growing, exciting and competitive
market and our key focus going forward will be on the continued
servicing of our customers' needs, achieving operational excellence
and bringing further innovation to the market.
Nick Habgood
Chairman
Chief Executive Officer's Statement
Over the last nine months I have had the opportunity to review
the business, understand its strengths and the opportunities for
improving its performance. I have also witnessed the importance
that Attraqt's technology and people play in the success of our
customers' digital businesses, which is relied upon today more than
ever.
The pandemic has bought about numerous changes to how we work
and the environment we are operating in. Whilst clearly there have
been challenges to overcome in the way we sell our solutions and
interact with our clients, at the same time the acceleration of
digital commerce has driven demand for our offering from customers,
and the Attraqt value proposition has never been more relevant.
Consumer spend in eCommerce has advanced by 4-6 years in twelve
months, and digital is now the number one investment priority for
many retailers and brands. Attraqt's software is integral to the
effective delivery of our clients' online retail operations and we
directly impact the conversion and revenue performance of their
businesses.
Despite all the changes happening in the wider world, we are
pleased to have successfully pushed ahead with several key tenets
of our strategy over the period. Key achievements include the
acquisition of Aleph Search, accelerating the pace of innovation, a
continued growth in net retention, a significant increase in
multi-year renewals signed in the period and the furthering of
international growth.
REVIEW OF SALES AND OPERATIONS
As previously stated, at the onset of the pandemic decision
making was naturally impacted by uncertainty. We then saw momentum
build in the second half of the year, driven by the significant
growth in online retail, the addition of Aleph's innovative AI
Search capabilities, and an enhanced focus on sales and marketing
execution. Overall, we achieved our bookings target with most of
the new booking activity falling in the second half of the
year.
Revenue was up 8% to GBP21.0m for the period, reflecting a full
year contribution from Early Birds alongside a good level of high
value multi-year renewals, new logos won and uplift from clients'
website use increases. On a like for like basis (i.e., as if Early
Birds was owned from 1st January 2019) total revenue was up 2%,
with SaaS revenue increasing by 9%.
We secured 38 multi-year contract renewals in the year worth
GBP15.72m, compared with 21 renewals in 2019 worth GBP5.35m. This
included a three-year contract renewal in the second half with one
of our top five customers, a leading global sportswear retailer.
The 81% increase in multi-year renewals reflects our continued
focus on customer success and illustrates the adoption of
online-focused strategies for many of the world's leading retail
brands.
We signed 29 new logos in the year, a 32% improvement on our
2019 new logo volume. Overall, we achieved 60% of our total
bookings number of GBP4.7m in the second half of the year much of
which was heavily backloaded and to be implemented in H1 2021.
We also benefited from incremental capacity upsells from March
onwards, as many retailers saw significant increases in site
traffic and activity as consumers embraced online shopping. Whilst
we expect some return to in-store shopping when the high street
reopens, we are confident that the levels of activity seen online
will continue to be materially higher than pre-Covid.
We experienced net revenue retention for the period of 102%,
achieving our ambition to surpass 100%, as outlined last year. It
is clear our work on customer success and product innovation is
helping to mitigate attrition. Whilst for any SaaS business
retention continues to be an ongoing focus, the majority of causes
for attrition are now driven by external factors which Attraqt has
limited control over including the challenges faced on the high
street, and the pervasive threat of e-commerce software
re-platforming.
This focus on customer success and operational excellence has
also driven a sizable improvement in our Net Promoter Score. We
ended 2020 with a NPS of 29, a significant improvement from 15 for
FY2019 and this continues to be area of focus for our Customer
Success teams with the goal of driving towards 40 by the end of
this year.
We are also adapting our strategy to be less reliant on larger
enterprise customers and specific verticals, with strong
capabilities to cater to a broad range of mid-market size brands
and retailers. The launch of Search in our XO product stack, with
its self-service customer and partner onboarding features will
allow us to realise the mid-market opportunity and scale growth
faster in a more diversified manner moving forward.
MARKET DEVELOPMENTS
There is no doubt that Covid-19 has dramatically impacted our
market dynamics. Shopping habits have changed and there is evidence
to suggest that these will persist. As a result, the online channel
will be of greater importance and, in our view, will receive
greater investment going forward. According to research by the
Office for National Statistics, eCommerce was under 19% of total
retail sales pre Covid-19, taking 12 years to move from 4% to 19%,
however since March 2020 it took only nine months to rise from 19%
to 27%.
Our own data also demonstrates a clear increase in activity. In
2020 our platform handled over 130 billion requests, up from 92
billion in 2019. The impact of restrictions during the Black Friday
was particularly profound as we handled almost 3 billion queries
over Cyber 5 (the period of time from Thanksgiving through to Cyber
Monday) trading, in comparison to our average monthly total of 10.4
billion. The fact that our platforms were able to handle this surge
is testament to the quality of our product and a genuinely world
class cloud operations team.
PERFORMANCE AGAINST GROWTH STRATEGY
We have continued to deliver against our strategy, focusing on
leveraging our strengths as well as driving a client-centric
approach, a culture of idea-sharing and innovation, creating a
world class sales & marketing operation, and on using data to
drive every decision that we take.
Our ongoing priorities, from the strategy set out in FY2019
are:
-- Evolving our data-led approach
-- Increasing the speed of our innovation
-- Executing our partnership strategy
-- Replicating our UK success in other geographies
-- Improving the customer and developer experience
We have evolved our sixth strategic priority from a 'Product
first brand strategy' to 'Being recognised as a market leader'. We
will establish a market leading position as a focused ecommerce
disruptor by demonstrating the differentiated value of our
platforms, innovation in AI and sector expertise through targeted
customer, analyst and employee engagement. We will develop a
top-class, integrated sales & marketing operation to spread the
message amongst our existing and prospective direct customers and
partners, bolstered by a coherent and 'stand-out' Attraqt brand.
Our progress in reaching this objective can be measured by speed of
growth, market share and industry analyst ratings.
Some of the key achievements in line with these priorities are
laid out below.
Acquisition of Aleph Search
As previously mentioned, Aleph Search was acquired in October
2020, following a partnership where we had been working together
for six months. Their innovative Artificial Intelligence (AI)
Search capabilities has already improved search query performance
and relevancy on the customers' websites we have deployed this on,
increased the speed of our innovation and accelerated the product
roadmap for search by an estimated two years. AI is now the centre
piece of our offering across all our products providing greater
competitive differentiation. In addition, it provides a platform
for innovation around text, voice and visual search which we expect
to become more widely adopted over the coming years.
In the six months we partnered with Aleph prior to the
acquisition, we saw the combined offering provide tangible results
to our existing customers. Contract value up-sell in the period
stands at 27% for existing customers, with a 100% conversion rate
from proof of concept trials to December 2020.
New partnerships
Building on our partnership with BigCommerce, we were named a
certified commercetools technology partner in July last year. We
have also put in place strategic partnerships with content
management system specialists Content Stack, Amplience, Magnolia
and Frontastic which allow us to improve the customer experience
and agility of our joint and new prospective customers.
Furthermore, we have signed eight digital agency and system
integration partnerships and have go to market initiatives running
with most of them today. This should help drive lead flow as well
as provide additional support to integrate our technology into the
customers' technology ecosystem.
These partnerships are vital to our growth ambitions and we have
made strong progress in the contribution they make towards our lead
flow and revenue in the period. Partnerships now account for 27% of
all our new business lead flow and 16% of our new business revenue,
up from 14% and 5% respectively compared to 2019.
Product development
Across Attraqt's product range, of Fredhopper, XO (Experience
Orchestrator) and our new AI Search capabilities, we now have the
ability to address a broad addressable market; ranging all the way
from the mid-market to the very largest retailers and brands. Our
solutions can orchestrate the entire shopper journey in
real-time.
Developments over recent periods have meant that our technology
now boasts a headless and open architecture, meaning that it is
agile and flexible, with the capability to connect in with other
software tools. Importantly, it is also scalable, able to benefit
from continuous improvements and get faster access to new
functionalities. Two of our major differentiators are our ability
to orchestrate algorithms (allowing clients to create their own
real-time algorithms) and our AI Search functionality (which
applies machine learning at the heart of the search engine).
These are the cornerstone of our latest innovation, but we have
exciting plans to take it further. In January we set up Attraqt
Labs, a new innovation unit tasked with rapidly developing
functional prototypes that demonstrate our innovation to customers
and drive organic innovation into our product set. This new team is
being led by Nicolas Mathon, the Co-Founder of Early Birds who
moved into a new role as VP of Innovation in February this
year.
Moving forward we are focused on continuing to infuse AI
everywhere across our platforms, reinforcing our search offering,
accelerating the development of XO (Experience Orchestrator),
increasing our partner engagement and also refreshing
Fredhopper.
Replicating our UK success in other geographies
In 2020, alongside the UK we had success in Australia thanks to
increased investment in the region in line with our strategy. We
have a strong team in place in this region, and we have signed a
number of the country's most significant retailers including
Country Road Group, Myer and Accent Group.
Looking ahead to 2021 we are appointing a direct sales team for
the Benelux region and set up a new partnership for a go to market
activities in the German region.
OUTLOOK
Despite there being continued uncertainty ahead, we believe that
shopping behaviour has changed as a result of the pandemic and new
habits will persist. A whole new segment of customers are now
shopping online. Attraqt's technology is integral to the delivery
of online retail operations and we are therefore well positioned to
capitalise on this opportunity.
The backloading of bookings in 2020 will have a marginal impact
on recognised revenue in 2021. We do remain cautious on our outlook
for 2021 given the continued headwinds associated to the pandemic
and its impact on our customers and our business expansion plans.
However, the sales momentum coupled with our continued investment
in innovation, product development, sales and marketing gives us
confidence that there are significant opportunities for growth in
2021 and beyond.
We have re-focused our sales organisation so that we can
concentrate more productively on our new business acquisition and
the strategic upsell of new products to our existing customers. In
addition, partnerships are integral to our growth ambitions and we
are focussing our go to market strategy to be more partner-led
which will drive expansion into new territories as well as the
mid-market opportunity. With a more competitive product set than we
have ever had before, we are well placed to achieve our long-term
growth ambitions.
Mark Adams
Chief Executive Officer
Chief Financial Officer's Statement
Revenue for the year increased by 8% to GBP21.0m (2019:
GBP19.4m), including a full year contribution from Early Birds SAS
that was acquired in May 2019. Revenue increased by 2% on a
proforma basis.
SaaS revenues increased by 9% to GBP19.3m (2019: GBP17.7m)
driven by strategic upsells and capacity growth in existing
accounts. Services Revenue remained flat at GBP1.7m (2019: GBP1.7m)
due to fewer, large implementations.
Revenue 2020 statutory 2020 proforma 2019 statutory 2019 proforma Growth Proforma
SaaS GBP19.3m GBP19.3m GBP17.7m GBP18.9m 9% 2%
---------------- --------------- ---------------- --------------- ------- ---------
Services GBP1.7m GBP1.7m GBP1.7m GBP1.7m - -
---------------- --------------- ---------------- --------------- ------- ---------
Total GBP21.0m GBP21.0m GBP19.4m GBP20.6m 8% 2%
---------------- --------------- ---------------- --------------- ------- ---------
*Statutory - this is the Group owned element (2020 compared with
2019).
# Proforma - this is the impact had the Attraqt Group owned
Early Birds for the full 2019 financial year.
Gross profit increased by 10% to GBP15.5m (2019: GBP14.1m) and
the gross margin increased by 2 percentage points to 74%. The SaaS
gross margin increased by 1% pt to 80% due to careful management of
our Amazon Web Services (AWS) estate and engaging external
suppliers to optimise the estate. The Services gross margin
increased by 6% pts to 9% due to having a stable team through 2020
and not having to divert changeable resource to onboard new
starters.
Adjusted EBITDA (pre-exceptional), as per definition in our
KPI's, totalled GBP1.1m profit (2019: GBP0.3m).
The exceptional costs of GBP0.3m in the year relate mainly to
restructuring and the asset purchase of Aleph software; legal and
professional advice associated with the transaction and
post-acquisition integration activities.
Admin expenses increased in line with the full year impact of
the enlarged team following the acquisition of Early Birds in 2019
and offset by a reduced marketing spend due to COVID-19.
Depreciation and amortisation totalled GBP3.5m (2019: GBP3.0m)
and increased due to the full year impact of the acquired
intangibles that were created on the Early Birds acquisition. There
was a share-based payment charge of GBP0.1m (2019: GBP0.2m).
Loss before tax was GBP2.6m (2019: GBP4.4m loss), with the tax
credit in the period GBP0.4m (2019: credit GBP0.4m). Therefore,
loss for the year after tax was GBP2.2m (2019: GBP4.0m loss).
Foreign exchange exposure
Cash flow forecasts will be maintained for each major operating
currency (GBP, EUR, USD, AUD) to manage transaction exposure. The
expectation is that the Group will have excess AUD than required
and short on USD. Exposures may be hedged in the current statutory
period using forward contracts. The forecast exposures as well as
the value hedged will be regularly reviewed. Hedging instruments as
well as spot deals may only be traded with approved
counterparties.
COVID-19 pandemic
The potential impact of the COVID-19 pandemic on Attraqt's
trading performance and all our principal risks has been assessed
with mitigation plans put in place. Up to the date of this report,
the pandemic has, as anticipated, positively impacted capacity
upsells, but impacted the speed of decision making at the onset of
the pandemic.
Cash
The cash balance at the end of the period was GBP6.6m (2019:
GBP4.0m), which was an increase of GBP2.6m during the year. The
increase was due to the additional equity and working capital
raised during the fundraise for the Aleph software acquisition.
Business Drivers
The key to growing value in a SaaS business is to grow the
Annual Recurring Revenue (ARR) by understanding and then moving the
levers that impact it. The ARR grew by 10% to GBP21.1m (2019:
GBP19.2m) and was driven by strategic and capacity upsells to our
existing customer base.
The first lever that impacts ARR is the booking of new,
recurring revenue. Recurring bookings in 2020 were GBP3.9m (2019:
GBP2.5m). Gross Attrition is an important KPI for our business,
because it challenges us to understand why our customers leave and
find preventative actions. Another important KPI is Net Revenue
Retention because it indicates how well we are serving our existing
customers. Gross Attrition for 2020 was 14% (GBP2.7m) and the NRR
was 102% (2019: 98%).
Share Lock-in Agreement
Further to the announcement of 8 May 2019, the Company has
brought forward the expiry date, to today, for certain ordinary
shares subject to lock-up agreements, comprising 2,596,651 ordinary
shares beneficially held by Mrs. Laetitia Comes-Bancaud and
2,596,651 ordinary shares beneficially held by Mr. Nicolas Mathon.
The lock-up and escrow terms of the remaining 5,152,982 ordinary
shares held by Mrs. Comes-Bancaud, Mr. Mathon and EB Growth, in
aggregate, remain unchanged.
This strategic report has been approved and is signed on behalf
of the Board:
Eric Dodd
Chief Financial Officer
11 March 2021
CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 2020
Note 2020 2019
GBP'000 GBP'000
Revenue 4 21,003 19,434
Cost of Sales 4 (5,502) (5,354)
------------------------------------ ---- -------- --------
Gross profit 15,501 14,080
Administration expenses (17,822) (16,933)
Exceptional administrative expenses 5 (256) (1,507)
------------------------------------ ---- -------- --------
Total administrative expenses (18,078) (18,440)
------------------------------------ ---- -------- --------
Loss from operations 6 (2,577) (4,360)
------------------------------------ ---- -------- --------
Net finance costs (58) (48)
Loss before tax (2,635) (4,408)
Taxation credit/(charge) 8 408 386
------------------------------------ ---- -------- --------
Loss for the year (2,227) (4,022)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2020
Note 2020 2019
GBP'000 GBP'000
------------------------------------------------------ ---- ------- -------
(Loss) for the year (2,227) (4,022)
------------------------------------------------------ ---- ------- -------
Foreign exchange translation differences (50) 40
------------------------------------------------------ ---- ------- -------
Total comprehensive (loss) for the year, attributable
to shareholders of the parent (2,277) (3,982)
------------------------------------------------------ ---- ------- -------
Loss per share attributable to the ordinary
equity holders of the company
------------------------------------------------------ ---- ------- -------
Basic and diluted EPS 9 (1.2p) (2.7p)
------------------------------------------------------ ---- ------- -------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
For the year ended 31 December 2020
Notes 2020 2019
GBP'000 GBP'000
Non-current assets
Plant and equipment 10 243 318
Right of use assets 11 1,073 1,354
Intangible assets 12 40,585 40,154
Total non-current assets 41,901 41,826
-------------------------------------------- ----- -------- --------
Current assets
Trade and other receivables 14 6,155 5,401
Cash and cash equivalents 15 6,591 3,950
Corporation tax 573 217
Total current assets 13,319 9,568
-------------------------------------------- ----- -------- --------
Total assets 55,220 51,394
-------------------------------------------- ----- -------- --------
Current Liabilities
Trade and other payables 18 11,667 10,182
Corporation tax 267 229
Total current liabilities 11,934 10,411
-------------------------------------------- ----- -------- --------
Non-current liabilities
Deferred tax liability 8 2,839 3,197
Lease liability 11 738 857
Total non-current liabilities 3,577 4,054
-------------------------------------------- ----- -------- --------
Net Assets 39,710 36,929
Equity
Issued capital 16 1,961 1,800
Share premium 16 53,251 48,516
Merger reserve 1,457 1,457
Share based payment reserve 17 1,585 1,423
Foreign exchange reserve (275) (225)
Retained earnings (18,269) (16,042)
-------------------------------------------- ----- -------- --------
Total equity attributable to equity holders
of the parent 39,710 36,929
CONSOLIDATED STATEMENT OF CHANGES OF EQUITY
For the year ended 31 December 2020
Notes Share Share Merger Share Foreign Retained Total
capital premium reserve based exchange earnings
payment reserve
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 January 2019 1,063 30,108 1,457 1,238 (265) (12,020) 21,581
Loss for the year - - - - - (4,022) (4,022)
Foreign currency translation
differences - - - - 40 - 40
----------------------------------- ----- -------- -------- -------- -------- --------- --------- -------
Total comprehensive loss
for the year - - - - 40 (4,022) (3,982)
-------- -------- -------- -------- --------- --------- -------
Contributions by and distributions
to owners
Shares issued 737 19,156 - - - - 19,893
Issue costs - (748) - - - - (748)
Share based payment charge 17 - - - 185 - - 185
Total contributions by
and distributions to owners 737 18,408 - 185 - - 19,330
----------------------------------- ----- -------- -------- -------- -------- --------- --------- -------
Balance at 31 December
2019 1,800 48,516 1,457 1,423 (225) (16,042) 36,929
----------------------------------- ----- -------- -------- -------- -------- --------- --------- -------
Loss for the year - - - - - (2,227) (2,227)
Foreign currency translation
differences - - - - (50) - (51)
----------------------------------- ----- -------- -------- -------- -------- --------- --------- -------
Total comprehensive loss
for the year - - - - (50) (2,227) (2,277)
----------------------------------- ----- -------- -------- -------- -------- --------- --------- -------
Contributions by and distributions
to owners
Shares issued 16 161 4,991 - - - - 5,152
Issue costs - (256) - - - - (256)
Contingent shares to be
issued - - - 103 - - 103
Share based payment charge 17 - - - 59 - - 59
----------------------------------- ----- -------- -------- -------- -------- --------- --------- -------
Total contributions by
and distributions to owners 161 4,735 - 162 - - 5,058
----------------------------------- ----- -------- -------- -------- -------- --------- --------- -------
Balance at 31 December
2020 1,961 53,251 1,457 1,585 (275) (18,269) 39,710
----------------------------------- ----- -------- -------- -------- -------- --------- --------- -------
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December 2020
Notes 2020 2019
GBP'000 GBP'000
Cash flows from operating activities
Loss for the year (2,227) (4,022)
Adjustments for:
Depreciation of property, plant and equipment 10 139 161
Amortisation of intangible fixed assets 12 2,817 2,387
Amortisation of right of use assets 11 574 466
Income tax (credit)/charge 8 (408) (386)
Share based payment expense 17 59 185
Finance costs 58 48
Foreign exchange differences (99) (92)
--------------------------------------------------- ----- ------- --------
913 (1,253)
Decrease/(increase) in trade and other receivables (1,110) 415
Increase in trade and other payables 880 314
--------------------------------------------------- ----- ------- --------
Cash generated/(used) in operating activities
before interest and tax 683 (524)
Taxation received /(paid) (166) 49
Net cash generated/(used) in operating activities 517 (475)
Cash flows used in investing activities
Acquisition of subsidiaries net of cash acquired - (10,875)
Fair value gain on forward contract - 149
Purchases of Property, plant and equipment 10 (66) (282)
Additions of internal software development
intangible 12 (1,341) (946)
Net cash used in investing activities (1,407) (11,954)
Cash flows from financing activities
Lease payments (626) (393)
Lease interest (61) (56)
Interest received 3 8
Issue of ordinary shares, net of issue costs 3,744 16,352
Loan received 450 -
Repayments of loan (27) (20)
Net cash generated from financing activities 3,483 15,891
--------------------------------------------------- ----- ------- --------
Net increase / (decrease) in cash and cash
equivalents 2,593 3,462
--------------------------------------------------- ----- ------- --------
Cash and cash equivalents at beginning of
year 3,950 509
Effect of foreign currency exchange rate changes 48 (21)
Cash and cash equivalents at end of year 15 6,591 3,950
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2020
1. GENERAL INFORMATION
Attraqt Group plc ("the Company") and its subsidiaries
(collectively, the 'Group') principal activity is the development
and provision of eCommerce site search, merchandising and product
recommendation technology.
The financial statements for the year ended 31 December 2020
were authorised for issue by the Board of Directors of the Company
on 11 March 2021.
The Company is a public limited company which is quoted on the
Alternative Investment Market on the London Stock Exchange, and is
incorporated, registered and domiciled in England and Wales
(registered number: 08904529). The address of its registered office
is 7(th) Floor, 222-236 Gray's Inn Road, London, WC1X 8HB.
2. ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of
these financial statements are set out below. These policies have
been consistently applied to all the years presented, unless
otherwise stated.
Basis of preparation
The consolidated financial statements of Attraqt Group plc for
the year ending 31 December 2020 comprise the results of Attraqt
Group plc ('the Company') and its subsidiaries (together, the
'Group'). These financial statements have been prepared on a going
concern basis and in accordance with international accounting
standards in conformity with the requirements of Companies Act 2006
and international financial reporting standards adopted pursuant to
Regulation (EC No 1606/2002) as it applies to the European Union.
The parent company financial statements have been prepared in
accordance with FRS 101, Financial Reporting Standards Framework.
The Group financial statements are presented in UK sterling and all
values are rounded to the nearest thousand pounds (GBP'000), except
when otherwise indicated.
The requirements of the Companies Act 2006 here means accounts
being prepared in accordance with 'international accounting
standards' as defined in section 471(1) of the Act, as it applied
immediately before the Implementation Period completion day (end of
transition period), including where the company also makes use of
which have been adopted for use within the United Kingdom in
accordance with regulation 1(5) of the International Accounting
Standards and European Public Limited Liability Company (Amendment
etc.) (EU Exit) Regulations 2019.
The preparation of financial statements in conformity with IFRS
requires the use of certain critical accounting estimates. It also
requires management to exercise its judgement in the process of
applying the Group's accounting policies. Further details on the
Group's critical judgements and estimates are included in note
3.
Going concern
As part of the Directors' consideration of the appropriateness
of adopting the going concern basis in preparing the financial
statements, given the uncertainty of COVID-19. The Group has
continued to monitor the impact of COVID-19 by reviewing the
monthly results versus the budget set for 2020. The Group has not
seen a severe impact in the year, due to national lockdowns, with
consolidated Revenue being just 1% behind budget, and consolidated
EBITDA remains on budget. The
consolidated cash balance available to the Group is healthy at
GBP6,591,000. The Group has continued to offer services and support
to our clients uninterrupted by the national lockdowns and has not
materially relied upon any furlough schemes available. The Group,
via Attraqt Limited, took advantage of available options to defer
VAT payment for Q1 2020 until March 2021, and to delay payments for
PAYE under a payment plan with HMRC which has now all been
paid.
To address uncertainties arising in the current environment, the
Group took steps to secure additional financing: extending
overdraft facilities from GBP100,000 to GBP250,000 in September
2020 within Attraqt Limited, and receiving a EUR 500,000 loan via
its French subsidiary Early Birds S.A.S. in July 2020. This loan
is
repayment free for at least 12 months, with options to defer
full or partial repayment up to 5 years past July 2021.
The Group's Directors have revised the Groups forecast taking
into account the resilience of future sales, customers and the
impacts of future possible COVID-19 related national lockdowns and
performed sensitivity analysis on monthly consolidated cash flows
to March 2022. Those forecasts make assumptions in respect
of future trading conditions, notably the economic environment
and its impact on Group's revenues. The forecasts take into account
foreseeable downside risks, based on the information that is
available to the Directors at the time of approval of these
financial statements, however it is not possible to quantify
the
ongoing impact with certainty.
Directors have identified that there is sensitivity to a
reduction in revenue receipts, with sustained reduction of over 15%
of annual recurring revenue bringing the Group outside existing
cash facilities without any mitigating cost reductions, however
they consider this to be unlikely given the impact seen within the
business in the current financial year to date.
Should revenue cash flows deteriorate, management would take
some mitigating actions, which include but are not limited to:
-- Negotiating longer credit terms with suppliers, for instance
30 day to 60 days;
-- Alter invoicing terms with customers, for instance from
annual bills to quarterly;
-- Reduction in marketing spend in relation to events; and
-- Reduction in staff costs, for instance reduction in bonus
payments if the Group does not meet financial targets or suspension
of pay rises and reduction of temporary staff usage.
Based on the above, acknowledging the uncertainty in the
economic environment as a result of the pandemic, the Board remains
satisfied that the Group holds sufficient cash together with bank
and other facilities and has further options available to meet its
working capital requirements for at least 12 months from the date
of approval of these financial statements and therefore supports
the preparation of the financial statements on a going concern
basis.
Revenue
Revenue represents sales to external customers at invoiced
amounts less value added tax or local taxes on sales. Where work is
completed at the year-end but not invoiced, the Attraqt Group
accrues for this income. The Group derives the majority of its
revenue from the provision of e-commerce services via a license fee
to online retailers which includes site search, merchandising and
product recommendation technology. The Group determines the
transaction price to which it expects to be entitled in return for
providing the promised obligation to the customer based on the
committed contractual amounts fixed cost agreed it with clients.
The Group has the following revenue streams:
SaaS license fee : In the case of SaaS Licence Fee only
contracts, revenue is recognised over time which is measured based
on the dates defined in the contract, as the customer has access to
the vendor's intellectual property as it exists at any given time
throughout the licence period. Implementation fees associated with
these licenses are recognised over the transaction period which is
defined in the contract, fees not associated with a license are
recognised at the end of the implementation period.
On-going services : Revenue in relation to Technical
Consulting/Business consulting contracts have distinct performance
obligations I.e. the number of consulting days defined in the
contract, will be recognised at a point in time according to time
and materials used - therefore, once the customer consumes the
benefits from the service provided, the revenue is recognised.
Revenue from the sale of prepaid services are deferred until such
time that the client utilises the services, or the contract
expires. Utilisation of services can include either milestones set
out in the project or consultancy days, therefore revenue is
recognised when the consultancy days have been consumed or
milestones defined in the project have been met.
Overage fees: In the case where overage charges apply, revenue
is recognised immediately based on the terms defined in the
contract, as Attraqt Group do not become entitled to revenue for
these charges until it is certain that the usage will breach 100%
of the allowance in the contract.
Contract assets represent prepaid commission to employees, this
is recognised over the life of the corresponding customer contract
in order to match the liability with the revenue earned.
Contract liability represents deferred income, which is
recognised in over time in accordance with the customer
contract.
Exceptional items
Exceptional items are those which, by virtue of their nature,
size or incidence, either individually or in aggregate, need to be
disclosed separately to allow full understanding of the underlying
performance of the Group.
Foreign currency translation
The functional and presentation currency of Attraqt Group plc is
GBP. Transactions in foreign currencies are translated into the
functional currency using exchange rates prevailing at the date of
the transaction. Monetary assets and liabilities denominated in
foreign currencies are retranslated at the rate of exchange ruling
at the balance sheet date. Exchange differences arising on the
settlement of monetary items and on the retranslation of monetary
items are taken to the consolidated income statement.
For the purposes of preparing consolidated financial statements,
the assets and liabilities of foreign subsidiary undertakings are
translated at the exchange rates ruling at statement of financial
position date. Profit and loss items are translated at the exchange
rate ruling at the date of the transaction. Exchange differences
arising are taken to the Group's foreign currency translation
reserve.
Pension
The Group operates a defined contribution scheme. Obligations
for contributions to the defined contribution pension schemes are
recognised as an expense in the income statement as incurred.
Government grants
Government grants are recognised at fair value when the grant is
received and recognised in the statement of profit or loss. The
government grants are netted against the expenses of the same
nature.
Intangible assets
Externally acquired intangible assets are initially recognised
at cost and subsequently amortised on a straight-line basis over
their useful economic lives.
Externally acquired intangible assets
Intangible assets are recognised on business combinations if
they are separable from the acquired entity or give rise to other
contractual/legal rights.
The significant intangibles recognised by the Group, their
useful economic lives and the methods used to determine the cost of
intangibles acquired in a business combination are as follows:
Intangible Useful economic Useful economic Valuation Method
Asset life life
for Fredhopper for Early
intangibles Birds intangibles
Customer Relationships 11 years 9 years Excess Earnings Method
- the value of the
intangible asset is
the present value of
the after-tax cash
flows potentially attributable
to it, net of the return
on fair value attributable
to tangible and other
intangible assets.
Existing Technology 7 years 10 years Relief from Royalty
Method - the value
of intangible assets
are estimated by capitalising
the royalties saved
because the company
owns the intangible
asset.
Trade Names 10 years 10 years Relief from Royalty
Method - the value
of intangible assets
are estimated by capitalising
the royalties saved
because the company
owns the intangible
asset.
Externally acquired intangible assets not acquired as part of a
business combination are initially recognised at cost and
subsequently amortised on a straight line basis over their useful
economic lives. Useful economic life of the Aleph software is 10
years.
The amortisation expense is charged to the administrative
expense line in the consolidated statement of comprehensive
income.
Internally generated intangible assets (development costs)
Expenditure on internally developed products is capitalised if
it can be demonstrated that:
-- it is technically feasible to develop the product for it to be sold;
-- adequate resources are available to complete the development;
-- there is an intention to complete and sell the product;
-- the Group is able to sell the product;
-- sale of the product will generate future economic benefits; and
-- expenditure on the project can be measured reliably.
Capitalised development costs are amortised over three years.
The amortisation expense is included within administrative expenses
in the consolidated statement of comprehensive income.
Development expenditure not satisfying the above criteria and
expenditure on the research phase of internal projects are
recognised in the consolidated statement of comprehensive income as
incurred.
Where there is an event or change in circumstance in relation to
such judgement, the Group must make an estimate of the expected
future economic benefits to determine that assets are not
impaired.
Impairment of assets
Assets that are subject to depreciation or amortisation are
reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable. An
impairment loss is recognised for the amount by which the asset's
carrying amount exceeds its recoverable amount. The recoverable
amount is the higher of an asset's fair value less costs to sell
and value in use. For the purposes of assessing impairment, assets
are grouped at the lowest levels for which there are separately
identifiable cash flows.
Consolidation
The results of all subsidiary undertakings are included in the
consolidated financial statements. Assets, liabilities, income and
expenses of a subsidiary acquired or disposed of during the year
are included in the consolidated financial statements from the date
the Group gains control until the date the Group ceases to control
the subsidiary.
Control is achieved when the Group is exposed, or has rights, to
variable returns from its involvement with the investee and has the
ability to affect those returns through its power over the
investee. Specifically, the Group controls an investee if, and only
if, the Group has:
power over the investee (i.e., existing rights that give it the
current ability to direct the relevant activities of the
investee);
exposure, or rights, to variable returns from its involvement
with the investee; and
the ability to use its power over the investee to affect its
returns.
Business combinations
Business combinations completed prior to 1 January 2020 are
accounted for using the acquisition method. Business combination
completed on or after 1 January 2020 the Group has a choice, on a
transaction by transaction basis to use a concentration test
whereby if substantially all of the fair value of the gross assets
acquired is concentrated in a single identifiable asset then this
is recognised as an asset acquisition and not a business
combination, if this test is not met the acquisition is accounted
for using the acquisition method.
The cost of an acquisition is measured as the aggregate of the
consideration transferred measured at acquisition date fair value
and the amount of any non-controlling interests in the acquiree.
For each business combination, the Group elects whether to measure
the non-controlling interests in the acquiree at fair value or at
the proportionate share of the acquiree's identifiable net assets.
Acquisition-related costs are expensed as incurred and included in
administrative expenses.
When the Group acquires a business, it assesses the financial
assets and liabilities assumed for appropriate classification and
designation in accordance with the contractual terms, economic
circumstances and pertinent conditions as at the acquisition
date.
Goodwill
Goodwill represents the excess of the cost of acquisition over
the fair value of the assets, liabilities and contingent
liabilities of acquired businesses at the date of acquisition.
Goodwill is stated at cost less accumulated impairment losses.
Goodwill is allocated to one cash-generating unit and is not
amortised but is tested annually for impairment, or more frequently
if there is an indication that the value of the goodwill may be
impaired.
Property, plant and equipment
Property, plant and equipment is initially recognised at cost
and is stated at cost less accumulated depreciation.
Property, plant and equipment is depreciated to reduce the
carrying amounts of the assets, less their estimated residual
values, over their expected useful lives, as follows:
Plant and machinery 3 years
Fixtures and fittings 3 years
Leasehold Improvements
Leasehold improvements are initially recognised at cost and is
stated at cost less accumulated depreciation.
Leasehold improvements are depreciated to reduce the carrying
amounts of the assets, less their estimated residual values, over
their expected useful lives, as follows:
Leasehold improvements Over the life
of the lease
Leases
The group leases various offices and equipment. Rental contracts
are typically made for fixed periods of 1 to 5 years but may have
extension options. Lease terms are negotiated on an individual
basis and contain a wide range of different terms and conditions.
The lease agreements do not impose any covenants, but leased assets
may not be used as security for borrowing purposes.
Payments associated with short-term leases and leases of
low-value assets are recognised on a straight-line basis as an
expense in profit or loss. Short-term leases are leases with a
lease term of 12 months or less. Low-value assets comprise
IT-equipment and small office leases.
Leases not meeting low value or short term criteria are
recognised as a right-of-use asset and a corresponding liability at
the date at which the leased asset is available for use by the
group. Each lease payment is allocated between the liability and
finance cost. The finance cost is charged to profit or loss over
the lease period so as to produce a constant periodic rate of
interest on the remaining balance of the liability for each period.
The right-of-use asset is depreciated over the shorter of the
asset's useful life and the lease term on a straight-line
basis.
Assets and liabilities arising from a lease are initially
measured on a present value basis. Lease liabilities include the
net present value of the following lease payments:
-- fixed payments (including in-substance fixed payments), less
any lease incentives receivable;
-- variable lease payment that are based on an index or a rate;
-- amounts expected to be payable by the Group under residual value guarantees;
-- the exercise price of a purchase option if the Group is
reasonably certain to exercise that option; and
-- payments of penalties for terminating the lease, if the lease
term reflects the Group exercising that option.
The lease payments are discounted using the interest rate
implicit in the lease. If that rate cannot be determined, the
lessee's incremental borrowing rate is used, being the rate that
the Group would have to pay to borrow the funds necessary to obtain
an asset of similar value in a similar economic environment with
similar terms and conditions.
Right-of-use assets are measured at cost comprising the
following:
-- the amount of the initial measurement of lease liability
-- any lease payments made at or before the commencement date
less any lease incentives received
-- any initial direct costs, and
-- restoration costs.
When the Group renegotiates the contractual term of a lease, the
lease liability is remeasured using the discount rate applicable on
the modification date, with the right of use asset being adjusted
by the same amount.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances, call deposits
and a bank loan. The bank loan is repayable over a five year period
with no interest. There are no bank overdrafts in either year
presented.
Share capital
Ordinary shares are classified as equity. Incremental costs
directly attributable to the issue of new shares are deducted from
share premium.
Share based payments
The Group has issued share options to certain employees, in
return for which the Group receives services from employees. The
fair value of the employee services received in exchange for the
grant of the options is recognised as an expense, the Group fair
values the options at the grant date using the Black Scholes
valuation model to establish the relevant fair values.
The total amount to be expensed is determined by reference to
the fair value of the options granted including any market
performance conditions (for example the Group's share price) but
excluding the impact of any service or non-market performance
vesting conditions (for example the requirement of the grantee to
remain an employee of the Group).
Non-market vesting conditions are included in the assumptions
regarding the number of options that are expected to vest. The
total expense is recognised over the vesting period. At the end of
each period the Group revises its estimates of the number of
options expected to vest based on the non-market vesting
conditions. It recognises the impact of any revision in the income
statement with a corresponding adjustment to equity.
Taxation including deferred taxation
Total income tax on the result for the year comprises current
and deferred tax. Income tax is recognised in the income statement
except to the extent that it relates to items recognised directly
in equity and other comprehensive income, in which case it is
recognised directly in equity and other comprehensive income.
Current tax is the expected tax payable on the taxable result
for the year, using tax rates enacted, or substantively enacted, at
the balance sheet date, and any adjustments to tax payable in
respect of previous years.
Current income tax assets and liabilities comprise those
obligations to fiscal authorities in the countries in which the
Group carries out its operations. They are calculated according to
the tax rates and tax laws applicable to the fiscal period and the
country to which they relate. All changes to current tax
liabilities are recognised as a component of tax expense in the
income statement unless the tax relates to an item taken directly
to equity in which case the tax is also taken directly to equity.
Tax relating to items recognised in other comprehensive income is
recognised in other comprehensive income.
Deferred tax is provided on all temporary differences between
the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for taxation purposes,
except for:
-- goodwill not deductible for tax purposes;
-- the initial recognition of an asset or liability in a
transaction that is not a business combination and which, at the
time of the transaction, affects neither the accounting profit nor
the taxable profit or loss; and
-- investments in subsidiary companies where the timing of the
reversal of the temporary difference is controlled by the Group and
it is probable that the temporary difference will not reverse in
the foreseeable future.
The amount of deferred tax recognised is based on the expected
manner of realisation or settlement of the carrying amounts of
assets and liabilities, using tax rates enacted, or substantively
enacted, at the balance sheet date. A deferred tax asset is only
recognised to the extent that it is probable that future taxable
profits will be available against which the asset can be used.
Financial instruments
Recognition, derecognition and measurement of financial
instruments
Financial assets and financial liabilities are recognised when
Attraqt Group becomes party to the contractual provisions of the
financial instrument. Financial assets are derecognised when the
contractual rights to the cash flows from the financial asset
expire, or when the financial asset and all substantial risks and
rewards are transferred. A financial liability is derecognised when
the related contractual obligation is extinguished, discharged or
cancelled, or when it expires. Financial instruments are recognised
and derecognised using settlement date accounting. On initial
recognition, financial instruments are measured at fair value. Fair
value on initial recognition includes transaction costs directly
attributable to the acquisition or issue of financial instruments,
except for financial instruments carried at fair value through
profit or loss, for which transaction costs are recognised in the
consolidated statement of comprehensive income in the period when
they are incurred. The Groups Financial assets include trade
receivables, other receivables, and cash and cash equivalents,
financial liabilities include trade payables, employee benefits,
bank loan and employee benefits.
Classification of financial instruments
Financial assets
On initial recognition, a financial asset is classified and
subsequently measured at:
-- amortised cost
-- fair value through profit or loss (FVTPL); or
-- fair value through other comprehensive income (FVOCI)
Business model assessment
The classification depends on Attraqt Group's business model for
managing these financial assets and the contractual terms of the
financial asset's cash flows. The business models objectives are
broken down into three categories:
-- Financial assets held solely to collect contractual cash flows;
-- Financial assets held both to collect contractual cash flows and selling the assets; and
-- Financial assets that are managed on a fair value basis.
A financial asset is measured at amortised cost if it meets both
of the following conditions and is not designated as FVTPL:
-- The asset is held within a business model whose objective is
to hold assets to collect contractual cash flows.
-- The contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal
and interest on the principal outstanding.
A financial asset is measured at FVOCI only if it meets both of
the following conditions and is not designated as FVTPL:
-- The asset is held within a business model whose objective is
achieved by both collecting contractual cash flows and selling
financial assets.
-- The contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal
and interest on the principal outstanding.
All other financial assets are classified as measured at
FVTPL.
Impairment of financial assets measured at amortised cost
The Group assesses on a forward looking basis expected credit
losses associated with its debt instruments carried at amortised
cost. The impairment methodology applied for trade receivables is
the simplified approach, which requires expected lifetime losses to
be recognised from initial recognition of the receivables.
Write-off policy
Financial assets are written-off after the Group has exhausted
all possible avenues of recovery from the customer and there is no
realistic prospect of recovering the amounts owed.
Financial liabilities
The Attraqt Group classifies its financial liabilities at
amortised cost unless it has designated liabilities at FVTPL or is
required to measure liabilities at FVTPL, these include trade
payables and short-term monetary liabilities. The Attraqt Group
designates a financial liability as measured at FVTPL on initial
recognition when it eliminates an accounting mismatch that would
otherwise arise from measuring assets or liabilities on a different
basis. A description of the basis for each designation is set out
in the major types of financial instruments section of this
note.
Subsequent measurement of financial instruments
Financial instruments are measured in subsequent periods either
at fair value or at amortised cost depending on the financial
instrument classification.
Financial instruments classified as at amortised cost
Subsequent to initial recognition, financial assets and
liabilities classified in this category are recognized at amortised
cost using the effective interest method. The effective interest
rate is the rate that exactly discounts the estimated future cash
payments and receipts through the expected life of the financial
asset or liability to its carrying amount. When calculating the
effective interest rate, the Attraqt Group estimate future cash
flows, considering all contractual terms of the financial
instrument. Interest income, interest expense and the amortisation
of loans fees are presented in the Consolidated Statement of
Income.
Financial instruments classified as at fair value through profit
or loss
Subsequent to initial recognition, gains and losses upon the
sale, disposal or write-off of these financial instruments are
included directly in the Consolidated Statement of Comprehensive
Income and are reported within administrative expenses.
Equity Instruments
The Attraqt Group measures equity instruments at FVTPL, changes
in the fair value would be recognised in Statement of Comprehensive
Income.
Changes in accounting policy
New standards, interpretations and amendments not applied
As at date of approval of the Group financial statements, the
following new and amended standards, interpretations and amendments
in issue are applicable to the Group but not yet effective and
thus, have not been applied by the Group:
Effective date*
Amendments to IFRS 16: Rent concessions 30 June 2020
Amendments to IAS 1: Classification of Liabilities 1 January 2022
as Current or Non-Current
Annual improvements to IFRS standards 2018-2020 1 January 2022
(* The effective dates stated above are those given in the
original IASB/IFRIC standards and interpretations. Following the
UK's withdrawal from the EU on 31 December 2020, the UK-adopted
international accounting standards will be applicable. In the
majority of cases this will result in an effective date consistent
with that given in the original standard or interpretation but the
need for endorsement restricts the Group's discretion to early
adopt standards.)
(At the date of authorisation of these financial statements,
these standards and interpretation have not yet been endorsed or
adopted by the UK.)
The Directors do not expect the adoption of these standards,
interpretations and amendments to have a material impact on the
Consolidated or Parent Company financial statements in the period
of initial application.
3. CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES
In the application of the Group's accounting policies, the
Directors are required to make judgements and estimates about the
carrying amounts of assets and liabilities that are not readily
apparent from other sources. The estimates and associated
assumptions are based on historical experience and other factors
that are considered to be relevant. Actual results may differ from
these estimates. There were no material judgements or estimates
used on application of IFRS 9 Financial Instruments or IFRS 15
Revenue from contracts with customers, there were no contracts that
straddled year end which required any judgement. The following
accounting policies have been identified as involving particularly
complex judgements or subjective estimates:
Judgements
-- Leases
Extension and termination options are included in a number of
property leases across the Group as well as contracts that include
rolling lease periods. These terms are used to maximise operational
flexibility in terms of managing contracts. The majority of
extension and termination options held are exercisable only by the
Group and not by the respective lessor.
In determining the lease term, management considers all facts
and circumstances that create an economic incentive to exercise an
extension option, allow the lease to roll forward for a further
lease period or not exercise a termination option. Extension
options and rolling lease periods (or periods after termination
options) are only included in the lease term if the lease is
reasonably certain to be extended (or not terminated). The
assessment is reviewed if a significant event or a significant
change in circumstances occurs which affects this assessment and
that it is within the control of the Group.
-- Capitalisation and impairment of development costs
It is a requirement under IFRS that development costs that meet
the criteria prescribed in the standard are capitalised. The
assessment of each project requires that a judgement is made as to
the commercial viability and the ability of the Group to bring the
product to market. Where there is an event or change in
circumstance in relation to such judgement, the Group must make an
estimate of the expected future economic benefits to determine that
assets are not impaired.
Estimates
-- Share based payments
Share options are recognised as an expense based on their fair
value at date of grant and staff turnover. The fair value of the
options is estimated through the use of a valuation model - which
require inputs such as the risk-free interest rate, expected
dividends, expected volatility and the expected option life - and
is expensed over the vesting period. Some of the inputs used to
calculate the fair value are not market observable and are based on
estimates derived from available data, such as employee exercise
behaviour and employee turnover.
-- Goodwill Impairment
Goodwill is tested for impairment annually and whenever events
or changes in circumstances indicate that the carrying amount of
goodwill has been impaired. In order to determine if the value of
goodwill has been impaired, the cash-generating unit to which
goodwill has been allocated must be valued using present value
techniques. When applying this valuation technique, the Group
relies on a number of factors, including historical results,
business plans, forecasts and market data. This is further
described in note 12. As can be deduced from this description,
changes in the conditions for these judgments and estimates can
significantly affect the assessed value of goodwill.
-- Valuation of acquired intangible assets
Intangible assets acquired in a business combination are
required to be recognised separately from goodwill and amortised
over their useful life if they are subject to contractual or legal
rights or are separately transferable and their fair value can be
reliably estimated. The Group has separately recognised the
intangible assets acquired during the acquisition for acquisition
in prior years (see note 12).
The fair value of these acquired intangible assets is based on
valuation techniques. The valuation models require input based on
assumptions about the future. The management uses its best
knowledge to estimate fair value of acquired intangible assets as
of the acquisition date. The value of intangible assets is tested
for impairment when there is an indication that they might be
impaired (see below). The management must also make assumptions
about the useful life of the acquired intangible assets which might
be affected by external factors.
4. SEGMENTAL REPORTING
For the purpose of IFRS 8, the chief operating decision maker
takes the form of the Board of Directors. The Directors' opinion is
that the business of the group is to provide cloud-based e-commerce
solutions. Based on this, there is one reportable segment. The
internal and external reporting is on a consolidated basis with
transactions between group companies eliminated on
consolidation.
2020 2019
GBP'000 GBP'000
Revenue by type
SaaS 19,278 17,745
Services 1,725 1,689
Total Revenue 21,003 19,434
Cost of Sales by type
SaaS 3,932 3,719
Services 1,570 1,635
Total Cost of Sales 5,502 5,354
---------------------- ------- -------
Gross profit 15,501 14,080
---------------------- ------- -------
There is one customer which contributes more that 10% which is
GBP2.1m of the Group's revenues (2019: 1 customer - contributing
GBP2.5m).
The table below provides an analysis of the Group's revenue by
geographical market where the customer is based.
2020 2019
GBP'000 GBP'000
Geographical split of revenue
UK 9,861 10,255
France 4,979 3,616
Netherlands 2,441 2,111
Rest of Europe 2,619 2,532
Rest of the World 1,103 920
Total Revenue 21,003 19,434
Contract assets and liabilities
Contract Assets
2020 2019
GBP'000 GBP'000
At 1 January 175 213
Recognised 1,360 44
Paid out (707) (82)
At 31 December 828 175
Contract liabilities
2020 2019
GBP'000 GBP'000
At 1 January 5,438 5,196
Recognised as revenue (20,015) (19,658)
Accrued as deferred
income 20,122 19,900
At 31 December 5,545 5,438
Contract assets are included within trade and other receivables,
contract liabilities are included within trade and other payables
as Deferred income. The contract liability balance arises from
contracts that relate to the next financial year. Contract assets
relate to contracts which can span up to 3 years, because
cumulative payments received from customers at each balance sheet
date do not necessarily equal the amount of revenue recognised on
the contracts.
5. EXCEPTIONAL ITEMS
During 2020, total exceptional costs incurred GBP256,000 (2019:
GBP1,507,000) of which GBP38,000 relates to restructuring,
GBP35,000 relates to entity closure costs and GBP183,000 relates to
the legal and professional advice associated with the asset
purchase and post-acquisition integration. The exceptional costs
for 2019 consist of GBP580,000 relating to restructuring and
GBP927,000 relating to the legal and professional advice associated
with the acquisition and post-acquisition integration.
6. LOSS FROM OPERATIONS
2020 2019
GBP'000 GBP'000
Loss from operations is taken after taking account
of the following items:
Staff costs (see note 7) 12,368 11,917
Depreciation of property, plant and equipment
(see note 10) 139 161
Amortisation of intangible assets (see note 12) 2,817 2,387
Amortisation of Right of use assets (see note
11) 574 466
Operating lease expense 100 204
Research and Development costs 1,254 1,139
Foreign exchange (profit)/loss (99) (92)
Other income (54) -
Audit and non-audit services:
Fees payable to the company's auditors for the
audit of the Group annual accounts:
Group annual accounts and subsidiary undertakings 130 134
Fees payable to the company's auditor and its
associates for other services:
Tax services 21 25
Interim fee 10 28
Other services 5 28
7. STAFF COSTS
The average number of persons employed by the Group (including
directors) during the year, analysed by category was as
follows:
(No.) 2020 2019
Sales 15 18
Technical 105 102
Management (including directors) 6 8
Administration 33 30
159 158
The average number of full-time equivalent persons employed by
the Group during the year, analysed by category, was as
follows:
(No.) 2020 2019
Sales 15 18
Technical 104 102
Management (including directors) 6 7
Administration 32 29
157 157
The aggregate payroll costs of these persons were as
follows:
2020 2019
GBP'000 GBP'000
Staff costs (including directors) comprise:
Wages and salaries 10,225 9,771
Social security contributions and similar taxes 1,827 1,632
Pension 257 329
Share Based Payment 59 185
------------------------------------------------ ------- -------
12,368 11,917
Capitalised staff costs total GBP873,000 (2019: GBP853,000).
Pension costs are in respect of the defined contribution scheme;
unpaid contributions at 31 December 2020 were GBP91,000 (2019:
GBP70,000).
8. TAXATION
2020 2019
GBP'000 GBP'000
Tax (credit)/charge comprises:
Current tax on loss for the year (242) (85)
Current tax adjustment in relation to prior years 192 -
Deferred Tax for the year (358) (301)
-------------------------------------------------- ------- -------
(408) (386)
The effective tax assessed for the year, all of which arises in
the UK, differs from the standard weighted rate of corporation tax
in the UK.
The reconciliation of the actual tax charge to that at the
domestic corporation tax rate is as follows:
2020 2019
GBP'000 GBP'000
Loss for the year (2,635) (4,408)
Expected tax charge based on the standard rate
of United Kingdom corporation tax at the domestic
rate of 19.00% (2019 - 19.00%) (501) (838)
Expenses not deductible for tax purposes 191 84
Adjustment in respect of prior years 192 -
Fixed asset differences (39) (8)
Unrelieved losses arising in the period 270 625
Additional deduction for R&D expenditure (642) (287)
Surrender of tax losses for R&D tax credit refund 91 67
Changes in rates of tax - (15)
Adjustment for different rates of corporation
taxation in overseas jurisdictions 30 (14)
------------------------------------------------------ ------- -------
Total tax (credit)/charge (408) (386)
At 31 December 2020, tax losses estimated at GBP8.5m (2019:
GBP7.5m) were available to carry forward by the Attraqt group,
arising from historic losses incurred. Management believe it is
prudent not to recognise the deferred tax asset until they can be
utilised against future profits.
DEFERRED TAX
GBP'000
At 1 January 2019 1,476
Arising through business combinations 2,022
Recognised in profit or loss (301)
-------
At 31 December 2019 3,197
Recognised in profit or loss (358)
At 31 December 2020 2,839
Categorised as: 2020 2019
GBP'000 GBP'000
Non-current 2,839 3,197
Deferred tax on acquired intangibles are the differences between
the carrying value of the relevant assets and the tax base.
Deferred tax assets and liabilities are measured at the tax rates
that are expected to apply in the period when the asset is realised
or the liability settled, based on tax rates that have been
enacted, or substantively enacted, at the balance sheet date.
9. LOSS PER SHARE
2020 2019
GBP'000 GBP'000
Numerator
Loss for the year and loss used in basic and diluted
EPS (2,227) (4,022)
Denominator
Weighted average number of shares used in basic
and diluted EPS 184,051,542 149,970,774
Loss per share - basic and diluted (1.2p) (2.7p)
The outstanding share options calculation are antidilutive, due
to loss made in the year.
10. PROPERTY, PLANT AND EQUIPMENT
Leasehold Plant and Fixtures Total
Improvements Machinery and Fittings
GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 1 January 2019 - 262 2 264
Additions 124 121 72 317
Disposals - (43) - (43)
------------- ---------- ------------- -------
At 31 December 2019 124 340 74 538
Additions - 66 - 66
Disposals - (150) - (150)
------------- ---------- ------------- -------
At 31 December 2020 124 256 74 454
Depreciation
At 1 January 2019 - 95 1 96
Charge for the year 15 127 19 161
Foreign exchange - 3 - 3
Disposals - (40) - (40)
------------- ---------- ------------- -------
At 31 December 2019 15 185 20 220
Charge for the year 21 94 24 139
Disposals - (148) - (148)
------------- ---------- ------------- -------
At 31 December 2020 36 131 44 211
Net Book Value
At 1 January 2019 - 167 1 168
At 31 December 2019 109 155 54 318
At 31 December 2020 88 125 30 243
11. RIGHT OF USE ASSETS AND LEASE LIABILITIES
Amounts recognised on the statement Leasehold Total
of financial position Properties
GBP'000 GBP'000
Cost
At 1 January 2019 349 349
Additions 839 839
Remeasurement of lease 425 425
Acquired through business combinations 207 207
----------- -------
At 31 December 2019 1,820 1,820
Remeasurement of lease 293 293
----------- -------
At 31 December 2020 2,113 2,113
Amortisation
At 1 January 2019 - -
Charge for the year 466 466
----------- -------
At 31 December 2019 466 466
Charge for the year 574 574
----------- -------
At 31 December 2020 1,040 1,040
Net Book Value
At 1 January 2019 349 349
At 31 December 2019 1,354 1,354
At 31 December 2020 1,073 1,073
The Group lease various offices. Rental contracts are typically
made for fixed periods between 12 months and 6 years but may have
extension options as well as leases that include rolling
contractual periods when the existing lease expires these are
described below. Rental contracts are signed at a fixed price
however some have variable increases which are linked to RPI.
Extension and termination options are included in some of the
property leases across the group. These are used to maximise
operational flexibility in terms of managing assets used in the
Group's operations including variable increases to the rental
amounts. In determining the lease term, management considers all
facts and circumstances that create an economic incentive to
exercise and option, or not exercise the option. Extension options
are only included in the lease term if the lease is reasonably
certain to be extended. Management have determined that termination
option for the London office will not be exercised .
The following property leases were modified due to extension
terms agreed: in December 2020 Early Birds renewed the lease for a
period of 18 months and in November 2020 the lease for Bulgaria was
extended for a period of 3 years.
Amounts recognised in the statement 2020 2019
of profit or loss
GBP'000 GBP'000
Amortisation 574 466
Interest expense 61 56
Expenses relating to short term leases
and low value assets 100 204
------- -------
735 726
Total cash outflow for lease in 2020 626 449
Lease liability recognised as at 31 2020 2019
December
Of these which are: GBP'000 GBP'000
Current lease liabilities 416 573
Non-current lease liabilities 738 857
1,154 1,430
11. RIGHT OF USE ASSETS AND LEASE LIABILITIES continued
The total future value of minimum short term and low value
operating lease payments is due as follows:
2020 2019
GBP'000 GBP'000
Not later than one year 40 66
Later than one year and not later than five years 3 6
43 72
12. INTANGIBLE ASSETS
Customer Existing Software
Goodwill Relationships Technology Trademark Development Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 1 January 2019 16,585 4,439 4,804 788 2,633 29,249
Additions - internally developed - - - - 946 946
Acquired through business
combinations 9,064 2,295 3,881 348 644 16,232
Foreign Exchange - (25) - - - (25)
---------- -------------- ----------- ----------- ------------ -------
At 31 December 2019 25,649 6,709 8,685 1,136 4,223 46,402
Additions - internally developed - - - - 1,341 1,341
Acquired through asset purchase - - 1,826 - - 1,826
Foreign Exchange - 39 - - 95 134
At 31 December 2020 25,649 6,748 10,511 1,136 5,659 49,703
Amortisation
At 1 January 2019 - 732 1,245 143 1,697 3,817
Charge for the period - 551 912 99 825 2,387
Foreign Exchange - - - - 44 44
---------- -------------- ----------- ----------- ------------ -------
At 31 December 2019 - 1,283 2,157 242 2,566 6,248
Charge for the period - 659 1,113 114 931 2,817
Foreign Exchange - 14 - - 39 53
---------- -------------- ----------- ----------- ------------ -------
At 31 December 2020 - 1,956 3,270 356 3,536 9,118
Net Book Value
At 1 January 2019 16,585 3,707 3,559 645 936 25,432
At 31 December 2019 25,649 5,426 6,528 894 1,657 40,154
At 31 December 2020 25,649 4,792 7,241 780 2,123 40,585
The net book value and expiry dates for the most significant
intangibles are as follows:
Expiry Expiry Expiry Early Birds Fredhopper Aleph Early Birds Fredhopper
Fredhopper Early Birds Aleph SAS Net BV Net book SAS Net BV
BV SAS book value Net book value book value Net book
value value
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
2020 2020 2020 2019 2019
Customer
relationships 2028 2028 - 1,891 2,796 - 2,146 3,280
Existing technology 2024 2029 2030 3,267 2,186 1,804 3,655 2,873
Trademark 2027 2029 - 293 487 - 328 566
12. INTANGIBLE ASSETS
The Group is required to test, on an annual basis, whether
goodwill has suffered any impairment. There is only one CGU as
services are tied to SaaS revenue. The recoverable amount is
determined based on value in use calculations. The use of this
method requires the estimation of future cash flows and the
determination of a discount rate in order to calculate the present
value of the cash flows.
The carrying amount of goodwill is allocated to the cash
generating units (CGUs) as follows:
2020 2019
GBP'000 GBP'000
Attraqt Group plc 25,649 25,649
The key assumptions used in the estimation of the recoverable
amounts are set out below. The values assigned to the key
assumptions represent management's assessment of future trends in
the relevant industries and have been based on historical internal
data:
2020 2019
Discount rate 12.25% 20.5%
Revenue growth rate 14% 12%
Budgeted EBITDA margin (average growth over next
5 years) 14% 10%
Terminal growth rate 5% 1.5%
The cash flow projections include specific estimates for 5 years
and a terminal growth rate thereafter. The terminal growth rate was
determined based on long term inflation growth rate due to the
expectations of the market in which Attraqt Group plc operates.
The discount rate was a pre-tax measure based on weighted
average cost of capital, with no debt leveraging.
Budgeted EBITDA is estimated by taking into account past
practice as follows:
o Revenue is assumed to grow at 14% based on historical growth
and management's expectations of future trends.
o The cost base is assumed to grow at an average rate 10% over
the next three years, this is non consistent rate of growth.
Management has identified that a reasonably possible change in
the following key assumptions could cause the carrying amount to
exceed the recoverable amount. The following table shows the amount
by which the these assumptions would need to change individually
for the estimated recoverable amount to be equal to the carrying
amount.
In percent 2020 2019
Revenue growth rate* (5.1) (3.6)
*assumes that the variable costs base associated with cost of
sales reduces in line with revenue reduction as the cost base is
driven by customer usage.
13. SUBSIDIARY UNDERTAKINGS
As at 31 December 2020, the subsidiaries of Attraqt Group plc,
all of which have been included in these consolidated financial
statements, are as follows:
Proportion Country of
of ownership Incorporation
Name Interest and principal Registered Office
place of business
Attraqt Limited 100% UK 7(th) Floor, 222-236 Gray's
Inn Road, London, WC1X 8HB
Attraqt Inc. (1) 100% USA 330 N Wabash Ave, Chicago,
IL 60611, USA
Early Birds SAS 100% France 10 Rue Treilhard. 75008, Paris,
France
Fredhopper BV 100% Netherlands Wework Metropool, Weesperstraat,
61-105 Amsterdam 1018VN
Spring Technologies 100% Bulgaria 1000 Sofia city, Sredec district,,
EOOD(2) 47A, Tsarigradskok shosse blvd,
bl. B, fl. 2, apt. 201A
Fredhopper SARL(2) 100% France RCS Paris27 Avenue de l'Opéra,
75001, Paris, France
Fredhopper GmbH(2) 100% Germany Neuer Wall 50, 20354 Hamburg,
Germany
Fredhopper (Australia) 100% Australia Level 19, 207 Kent St, Sydney
Pty Limited(2) NSW 2000
FCLS RM 7 Limited 100% UK 7(th) Floor, 222-236 Gray's
Inn Road, London, WC1X 8HB
1 - Held through Attraqt Limited
2 - Held through Fredhopper BV
Fredhopper Limited and Early Birds London limited were dissolved
on 29(th) December 2020. FCLS RM 7 Limited was acquired on 1(st)
October as part of the asset purchase of the Aleph software
transaction.
The principal activity of all companies with the Group is the
provision of software as a service, with the exception of FCLS RM 7
Limited which is a holding company.
14. TRADE AND OTHER RECEIVABLES
2020 2019
GBP'000 GBP'000
Trade receivables 4,215 4,380
Less: expected credit losses (142) (95)
------- -------
Trade receivables - net 4,073 4,285
Prepayments and accrued income 1,829 746
Other receivables 253 370
---------------------------------- ------- -------
Total trade and other receivables 6,155 5,401
Trade receivables comprise amounts due from customers for goods
sold or services performed in the ordinary course of business.
Invoices to customers are settled between 30 - 90 day credit terms
with the average being 45 days of the date of issue. The ageing of
trade receivables is shown below and shows amounts that are past
due at the reporting date. A provision for expected credit losses
has been recognised at the reporting date through consideration of
the ageing profile of the Group's receivables and the perceived
credit quality of its customers.
The Group applies the IFRS 9 simplified approach to measuring
expected credit losses using lifetime expected loss rates, these
have been derived from historical default rates or the Group,
adjusted for credit quality of each customer and forward looking
estimates including consideration for the risk of a downturn in the
high street.
Expected credit losses
The lifetime expected loss provision for the trade receivables
is as follows:
31 December 2020 Current Up to 30 More than More than More than Total
days old 30 days 60 days 120 days
old old old
Expected loss rate 0.5% 3% 4% 9% 20%
Gross carrying amount 3,547 272 11 96 216 4,143
Loss provision 18 5 - 9 44 76
Gross carrying amount
for lifetime credit
loss - - - - 66 66
Loss provision for
lifetime credit loss - - - - 66 66
------- --------- --------- --------- --------- -----
Total loss provision 18 5 - 9 110 142
31 December 2019 Current Up to 30 More than More than More than Total
days old 30 days 60 days 120 days
old old old
Expected loss rate 0% 0% 3.3% 6.6% 23%
Gross carrying amount 2,859 1,040 240 105 72 4,316
Loss provision - - 8 7 16 31
Gross carrying amount
for lifetime credit
loss - - - - 64 64
Loss provision for
lifetime credit loss - - - - 64 64
------- --------- --------- --------- --------- -----
Loss provision - - 8 7 80 95
At 31 December 2020 trade receivables of GBP66,000 (2019:
GBP64,000) had life time expected credit losses of the full value
of the receivables. All other trade receivables have been
calculated on a life time expected credit loss rate.
2020 2019
GBP'000 GBP'000
As at 1 January 95 31
Write off (23) (7)
Acquired through business combinations - 15
Recognised 88 58
FX movement (18) (2)
As at 31 December 142 95
15. CASH AND CASH EQUIVALENTS
2020 2019
GBP'000 GBP'000
Cash at bank 6,672 4,048
Bank loan (81) (98)
------- -------
6,591 3,950
------- -------
The Group acquired the bank loan as part of the Early Birds
acquisition, the terms of loan are interest free and is repayable
over five years.
16. SHARE CAPITAL AND RESERVES
Allocated, called up and fully paid
2020 2020 2020 2019 2019 2019
GBP'000 GBP'000 GBP'000 GBP'000
Number Share capital Share Premium Number Share capital Share Premium
of Shares of Shares
Ordinary shares of GBP0.01
each
At 1 January 180,048,207 1,800 48,516 106,368,589 1,063 30,108
Shares issued for cash
during the year 12,500,000 125 3,619 63,333,334 633 15,718
Shares issued to sellers
as part of asset purchase
and acquisition 3,600,964 36 1,116 10,346,284 104 2,690
----------- ------------- ------------- ----------- ------------- -------------
At 31 December 196,149,171 1,961 53,251 180,048,207 1,800 48,516
=========== ============= ============= =========== ============= =============
The Company raised GBP4,000,000 before expenses, by private
placing of 12,500,000 1p Ordinary shares at 32p on 1 October 2020.
3,600,964 Ordinary shares were issued to the sellers as
consideration for the asset purchase of the Aleph software. In
2019, the Company raised GBP17,100,000 before expenses, by a
private placing of 63,333,334 1p Ordinary shares at 27p on 29 May
2019. 10,346,284 Ordinary shares were issued to the sellers as
consideration for the acquisition of Early Birds SAS.
The following describes the nature and purpose of each reserve
within equity:
Reserve Description and purpose
Share premium Amount subscribed for share capital in excess
of nominal value.
Share based payment reserve The share based payment reserve represents
equity settled share based employee remuneration
until such share options are exercised and
contingent shares.
Merger reserve The merger reserve results from the application
of merger accounting on the merger of Attraqt
Inc and Attraqt Limited.
Retained earnings All other net gains and losses and transactions
with owners (e.g. dividends) not recognised
elsewhere.
--------------------------- -------------------------------------------------
17. SHARE BASED PAYMENTS
The company operates two equity-settled share based remuneration
schemes for employees: a United Kingdom tax authority approved
scheme and an unapproved scheme for executive directors and certain
senior management. Both options are valid for 10 years from the
date of grant. After satisfaction of any performance condition
included in the award the options will become exercisable on the
earlier of any of the following events:
-- The third anniversary of the date of grant (with the exception of the below);
-- 2,250,000 shares granted on 5(th) august 2020 vest 25% per annum over 4 years;
-- Shares granted on 10th July vested immediately;
-- On a change of Control of the Company as defined in the Plan rules;
-- On a Sale or Disposal of the Company as defined in the Plan rules; or
-- Following the exercise of discretion by the Board.
Details of the number of share options and the weighted average
exercise price outstanding during the year are as follows:
2020 WAEP 2019 WAEP
Number Price (pence) Number Price (pence)
Outstanding at the beginning of the year 12,607,818 31.67 10,431,116 34.80
Granted during the year 3,710,000 27.37 3,051,185 30.35
Forfeited during the year (3,087,827) 33.49 (874,483) 34.42
Outstanding at the end of the year 13,229,991 32.59 12,607,818 31.67
----------- ------------- ---------- -------------
Exercisable at the year end 4,948,806 36.57 1,578,992 42.98
The options granted in the table above do not reconcile to the
table below, as some of the options granted in 2020 have been
forfeited by employees due to them leaving employment as well as
80,000 shares included as granted in 2020, but were granted in 2019
and omitted from the amounts granted in 2019.
17. SHARE BASED PAYMENTS continued
The options outstanding at the year-end are set out below:
2020 2019
Share options Remaining Share options Remaining
life life
Date of Grant Expiry Date Exercise Price (Number) (Years) (Number) (Years)
(p)
24-Jul-13 24-Jul-23 31.59 246,600 3 246,600 4
29-May-14 29-May-24 31.59 177,590 4 177,590 5
19-Aug-14 19-Aug-24 31.59 - - 177,590 5
25-Sep-15 25-Sep-25 50.00 616,719 5 977,212 6
15-Dec-17 15-Dec-27 35.00 3,722,898 7 3,722,898 8
25-May-18 25-May-28 31.50 936,315 7 3,191,058 8
06-Aug-18 06-Aug-28 33.50 1,063,685 8 1,063,685 9
25-May-19 25-May-29 27.00 1,688,685 8 1,688,685 9
16-Aug-19 16-Aug-29 34.50 1,197,500 9 1,362,500 10
08-May-20 08-May-30 24.50 455,000 9 - -
10-Jul-20 10-Jul-30 27.50 125,000 10 - -
05-Aug-20 05-Aug-30 28.00 750,000 10 - -
05-Aug-20 05-Aug-30 27.50 2,250,000 10 - -
The company uses a Black Scholes model to estimate the fair
value of share options.
The following information is relevant in the determination of
the fair value of options granted. The assumptions inherent in the
use of this model are as follows:
-- The option life is the estimated average period over which the options will be exercised.
-- No variables change during the life of the option (e.g. dividend yield remains zero).
-- Volatility has been calculated over a 6 year period prior to the grant date.
-- Expectations of staff retention over the vesting period have
been calculated by reference to the six year period prior to the
grant date.
Details of the share options granted as follows:
Grant date 08-May-20 10-Jul-20 05-Aug-20 05-Aug-20
Option pricing model Black Scholes Black Scholes Black Scholes Black Scholes
Number of shares 505,000 125,000 2,250,000 750,000
Fair Value per share at grant date 7.1p 8.3p 8.5p 8.4p
Share price on grant date 24.5p 28.0p 28.5p 28.5p
Exercise price (GBP) 24.5p 27.5p 27.5p 28.0p
Weighted average contractual life 6 years 6 years 6 years 6 years
Staff retention rate - - - -
Risk-free interest rate 0.09% 0% 0% 0 %
Volatility 30.17% 30.19% 30.04% 30.04%
Total Fair Value (GBP) 35,900 9,750 202,500 63,000
The total expense recognised during the year by the Group, for
all schemes, was GBP59,000 (2019: GBP185,000) net of forfeitures.
The weighted average remaining life of the options outstanding at
the end of the year was 7.8 years (2019: 8.1 years). No options
were exercised during the year.
18. TRADE AND OTHER PAYABLES
2020 2019
GBP'000 GBP'000
Trade payables 1,268 1,055
Accrued and other payables 1,460 891
Bank loan 450 -
Lease liability (note 11) 416 573
Other taxes 741 469
Deferred income 5,545 5,438
Employee benefits 1,334 1,398
Employee taxes 453 358
------------------------------- ------- -------
Total Trade and other payables 11,667 10,182
------------------------------- ------- -------
Included within other payable is GBP350,000 of deferred cash
consideration in relation to the Aleph asset purchase.
The bank loan has restrictions on sale of assets without prior
agreement, whereby we would need to seek approval if we were to
sell assets greater than 50% of gross assets.
The following have not been included within the movement trade
payables of the consolidated cash flow statement, GBP350,000
deferred cash consideration payable in relation to the Aleph asset
purchase, GBP450,000 bank loan included within the financing
section, and GBP416,000 lease liability which is included within
the financing section.
19. FINANCIAL RISK MANAGEMENT AND IMPAIRMENT OF FINANCIAL ASSETS
The Group is exposed through its operations to the following
financial risks:
-- Credit risk
-- Foreign exchange risk
-- Liquidity risk
In common with all other businesses, the Group is exposed to
risks that arise from its use of financial instruments. This note
describes the Group's objectives, policies and processes for
managing those risks and the methods used to measure them. Further
quantitative information in respect of these risks is presented
throughout these financial statements.
There have been no substantive changes in the Group's exposure
to financial instrument risks, its objectives, policies and
processes for managing those risks or the methods used to measure
them from previous periods unless otherwise stated in this
note.
Principal financial instruments
The principal financial instruments used by the Group, from
which financial instrument risk arises, are as follows:
-- Trade receivables
-- Cash and cash equivalents
-- Trade and other payables
A summary of the financial instruments held by category is
provided below.
Financial assets at amortised cost 2020 2019
Current GBP'000 GBP'000
Trade receivables 4,073 4,285
Accrued income 189 66
Other receivables 253 370
4,515 4,721
----------------------------------- ------- -------
Cash and cash equivalents 6,591 3,950
All financial assets held by the Group at 31 December 2020 are
classified as cash and cash equivalents or financial assets at
amortised cost and there is no difference between the carrying
amount and the fair value.
Financial liabilities at amortised cost 2020 2019
GBP'000 GBP'000
Trade payables 1,268 1,055
Accrued and other payables 1,460 891
Lease liabilities 1,154 1,427
Bank loan 450 -
Employee benefits 1,334 2,289
5,666 5,662
---------------------------------------- ------- -------
All financial liabilities held by the Group at 31 December 2020
are classified as held at amortised cost.
19. FINANCIAL RISK MANAGEMENT AND IMPAIRMENT OF FINANCIAL ASSETS continued
General objectives, policies and processes
The Board has overall responsibility for the determination of
the Group's risk management objectives and policies and, whilst
retaining ultimate responsibility for them, it has delegated the
authority for designing and operating processes that ensure the
effective implementation of the objectives and policies to the
Company's Chief Executive Officer. The Board receives reports from
the Company Chief Financial Officer through which reviews the
effectiveness of the processes put in place and the appropriateness
of the objectives and policies it sets.
The overall objective of the Board is to set policies that seek
to reduce risk as far as possible without unduly affecting the
Group's competitiveness and flexibility. Further details regarding
these policies are set out below:
Credit risk
Credit risk is the risk of financial loss to the Group if a
customer or counterparty to a financial instrument fails to meet
its contractual obligations. The Group is mainly exposed to credit
risk from credit sales. It is Group policy, implemented locally, to
assess the credit risk of new customers before entering contracts.
Such credit ratings take into account local business practices. The
carrying amount of financial assets represents the maximum
exposure. The credit quality of all financial assets that are
neither past due nor impaired is high. In accordance with internal
policy, Attraqt promptly identifies the deterioration of the
financial condition for our customer base by monitoring the credit
ratings and publicly available information. The risk is not
expected to be material as payment is generally received in advance
of services and good provided.
The Group considered if that there was an impairment if any of
the following indicators were present:
-- Significant financial difficulties of the debtor;
-- Probability that the debtor will enter bankruptcy; or financial reorganisation; and
-- Default or late payments (more than 30 days past payment due date).
Receivables for which an impairment provision was recognised was
written off against the provision when there was no expectation of
recovering additional cash.
Credit risk also arises from cash and cash equivalents and
deposits with banks and financial institutions. For banks and
financial institutions, only independently rated parties with
minimum rating "A" are accepted.
Further disclosures regarding trade and other receivables are
provided in note 14.
Foreign exchange risk
Foreign exchange risk arises when the group entities enter into
transactions denominated in a currency other than the functional
currency. The Group's policy is, where possible, to allow entities
to settle liabilities denominated in their functional currency with
the cash generated from their own operations in that currency.
In order to monitor the continuing effectiveness of this policy,
the CFO reviews a monthly forecast, analysed by the major
currencies held by the Group, of liabilities due for settlement and
expected cash reserves.
Transaction risk
The Group's material transaction exposure arises on costs
denominated in currencies other than the functional currency of the
Group, including salaries and our hosting platform. This has been
mitigated as far as possible by matching revenue and costs with the
respective currencies in each of the subsidiaries locations
resulting in an immaterial foreign currency risk at an entity
level. Foreign currencies are not hedged.
Liquidity risk
Liquidity risk arises from the Group's management of working
capital. The Group manages the risk that it will encounter
difficulty in meeting its financial obligations as they fall due by
forecasting its short-term cash position on a regular basis.
The Group's policy is to ensure that it will always have
sufficient cash to allow it to meet its liabilities when they
become due. To achieve this aim, it seeks to maintain cash balances
(or agreed facilities) to meet expected requirements for a period
of at least 30 days.
The Board receives rolling 12-month cash flow projections on a
quarterly basis as well as information regarding cash balances. At
the end of the financial year, these projections indicated that the
Group expected to have sufficient liquid resources to meet its
obligations under all reasonably expected circumstances.
In the management of liquidity risk, the group monitors and
tries to maintain a level of cash and cash equivalents deemed
adequate by management to finance the Group's operations and
mitigate the effects of fluctuations in cash flows.
The following table sets out the contractual maturities
(representing undiscounted contractual cash-flows) of financial
liabilities:
2020 GBP'000 Up to 3 3 - 12 1 - 2 years 2 - 5 years Over 5
months months years
Trade payables and employee benefits 2,602 - - - -
Accruals and other payables 1,460 - - - -
Lease liabilities 143 325 293 440 -
4,205 325 293 440 -
------------------------------------- ------- ------- ----------- ----------- ------
19. FINANCIAL RISK MANAGEMENT AND IMPAIRMENT OF FINANCIAL ASSETS continued
2019 GBP'000 Up to 3 3 - 12 1 - 2 years 2 - 5 years Over 5
months months years
Trade and other payables 3,344 - - - -
Bank loan - 450 - - -
Lease liabilities 144 429 349 429 79
3,488 429 349 429 79
------------------------- ------- ------- ----------- ----------- ------
Capital management
The Group's objective is to maintain an appropriate balance of
debt and equity financing to enable the Group to continue as a
going concern, to continue the future development of the
business and to optimise returns to shareholders and benefits to
other
stakeholders.
The Board closely manages trading capital, defined as net assets
plus net debt. The Group's net assets at 31 December 2020 were
GBP39.7 million (2019: GBP36.9 million) and net debt, calculated
as total debt (comprising bank loans), less cash and cash
equivalents
amounted to GBP6.1 million (2019: GBP4.0 million).
In the year, the Group issued shares via a fund raise of
GBP16.1m this was to purchase the Aleph Search software, a
subsidiary was a granted a loan of 450,000 this was due to the
uncertainty of the impact of COVID-19 and foreign exchange forward
purchases were made in order to protect the cost base, there were
no foreign exchange forward purchases that were outstanding at year
end.
The principal focus of capital management revolves around
working capital management and compliance with externally imposed
financial covenants. Throughout the year and up to the date of
approval of these financial statements, the Group complied with all
covenants required by our lending group.
Major investment decisions are based on reviewing the expected
future cash flows and all major capital expenditure requires
approval by the Board.
20. RELATED PARTY TRANSACTIONS
During the year Group companies entered into the following
transactions with related parties who are not members of the
Group.
Purchase of services Amounts owed to
related parties
2020 2019 2020 2019
GBP'000 GBP'000 GBP'000 GBP'000
Azini Capital Partners(1) 70 40 20 -
Taylor Wessing(2) 40 40 - 12
Taylor Wessing(3) 213 295 - -
-------------------------- ---------- ---------- -------- --------
1. Azini Capital Partners - Nick Habgood is a partner in Azini
Capital Partners, and his Directors fees were paid to Azini
Capital.
2. Robert Fenner is a partner in Taylor Wessing LLP, and his
Directors fees were paid to Taylor Wessing LLP.
3. During the current year Taylor Wessing provided various legal
and professional fees, in the prior period, the fees were in
relation to the Fund raising and asset purchase of Aleph software
and in the prior year the fund raising and acquisition of Early
Birds SAS.
4. Azini Capital Partners - Nick Habgood's daughter is employed
by the Group and was paid market rate salary as an Account
Manager.
Details of the directors' emoluments, together with the other
related information, are set out in the Report of the Remuneration
Committee.
Key Management personnel
Key management personnel are those persons having authority and
responsibility for planning, directing and controlling activities
of the Group, which comprises only the directors of the
company.
2020 2019
GBP'000 GBP'000
Salary, Director fees, bonus and benefits in kind 750 545
Pension 13 11
Share based payments (4) 321
759 877
Further information about the remuneration of individual
Directors is provided in the Directors remuneration report on page
25.
The Employer's National Insurance contributions expensed in the
period relevant to the Key management personnel compensation was
GBP109,000 (2019: GBP80,000).
21. CAPITAL COMMITMENTS
Capital commitments comprise amounts payable under contracts
which are duly authorised and in progress at the balance sheet
date. Amounts contracted but not provided for GBP242,000 cash
payable in January 2021 and GBP1,950,000 in relation to 5,131,374
shares at 38p per share based on the share price on 31 December
2020, which is to be issued for completion of the IP transfer of
the Aleph software and contracted enhancement of the Aleph project
(2019: GBPnil).
The information contained this preliminary results announcement
has been prepared on the basis of the accounting policies which
have been set out in the Group's financial statements for the year
ended 31 December 2020 and do not constitute statutory financial
statements within the meaning of section 435 of the Companies Act
2006.
The financial statements for the year ended 31 December 2020
which were prepared in accordance with International Financial
reporting Standards (IFRS) as adopted by the EU have been reporting
on by the Group's auditors and delivered to the Registrar of
Companies. The report of the auditors was unqualified and did not
draw attention to any matters by what of emphasis and did not
contact statements under Section 498 (2) or (3) of the Companies
Act 2006. The statutory financial statements for the year ended 31
December 2020 have been finalised on the basis of the financial
information presented by the directors in this preliminary
announcement. The auditors have issued an unmodified opinion in
respect of the year ended 31 December 2020.
COMPANY STATEMENT OF FINANCIAL POSITION
For the year ended 31 December 2020
Notes 2020 2019
GBP'000 GBP'000
Non-current assets
Investments 2 40,991 39,105
Amounts owed by group undertakings 7 12,343 8,736
Total non-current assets 53,334 47,841
----------------------------------- ------ ------- -------
Current assets
Trade and other receivables 3 332 214
Total current assets 332 214
----------------------------------- ------ ------- -------
Total assets 53,666 48,055
----------------------------------- ------ ------- -------
Current Liabilities
Trade and other payables 4 609 161
Total current liabilities 609 161
----------------------------------- ------ ------- -------
Net Assets 53,057 47,894
Equity
Share capital 5 1,961 1,800
Share premium 5 53,251 48,516
Share based payment 6 1,585 1,423
Retained earnings (3,740) (3,845)
----------------------------------- ------ ------- -------
Total equity 53,057 47,894
Company income statement
As permitted by Section 408 of the Companies Act 2006, the
income statement of the parent company is not presented as part of
these financial statements. The parent company's result after
taxation for the financial year was a profit of GBP105,000 (2019:
loss GBP374,000).
The accompanying accounting policies and notes form an integral
part of these financial statements.
Eric Dodd
Director
Date: 11 March 2021
COMPANY STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2020
Note Share Share Share Retained Total
Capital premium based earnings
payment
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 January 2019 1,064 30,108 1,238 (3,471) 28,939
Loss for the year - - - (374) (374)
Total comprehensive loss for the year - - - (374) (374)
--------- -------
Contributions by and distributions
to owners
Shares issued 5 736 19,156 - - 19,892
Issue costs 5 - (748) - - (748)
Share based payment charge 6 - - 185 - 185
---- -------- -------- -------- --------- -------
Total contributions by and distributions
to owners 736 18,408 185 - 19,329
----------------------------------------- ---- -------- -------- -------- --------- -------
Balance at 31 December 2019 1,800 48,516 1,423 (3,845) 47,894
----------------------------------------- ---- -------- -------- -------- --------- -------
Profit for the year - - - 105 105
Total comprehensive profit for the
year - - - 105 105
----------------------------------------- ---- -------- -------- -------- --------- -------
Contributions by and distributions
to owners
Shares issued 5 161 4,991 - - 5,152
Issue costs 5 - (256) - - (256)
Share based payment charge 6 - - 59 - 59
Contingent shares to be issued - - 103 - 103
----------------------------------------- ---- -------- -------- -------- --------- -------
Total contributions by and distributions
to owners 161 4,735 162 - 5,058
----------------------------------------- ---- -------- -------- -------- --------- -------
Balance at 31 December 2020 1,961 53,251 1,585 (3,740) 53,057
----------------------------------------- ---- -------- -------- -------- --------- -------
The following describes the nature and purpose of each reserve
within equity:
Reserve Description and purpose
Share premium Amount subscribed for share capital in excess
of nominal value.
Share based payment reserve The share based payment reserve represents
equity settled share based employee remuneration
until such share options are exercised.
Retained earnings All other net gains and losses and transactions
with owners (e.g. dividends) not recognised
elsewhere.
--------------------------- -------------------------------------------------
The accompanying accounting policies and notes form an integral
part of these financial statements
NOTES TO THE COMPANY FINANCIAL STATEMENTS
For the year ended 31 December 2020
1. ACCOUNTING POLICIES
Basis of preparation
The company financial statements have been prepared in
accordance with Financial Reporting Standard 100 Application of
Financial Reporting Requirements and Financial Reporting Standard
101 Reduced Disclosure Framework.
The principal accounting policies adopted in the preparation of
the financial statements are set out below. The policies have been
consistently applied to all the years presented, unless otherwise
stated.
The Company applies consistent accounting policies, as applied
by the Group with the exception of the below. To the extent that an
accounting policy is relevant to the Group and the Company
financial statements, refer to the Group financial statements for
disclosure of the accounting policy.
The financial statements have been prepared under the historical
cost convention and are in accordance with applicable accounting
standards. The following principal accounting policies have been
applied.
Disclosure exemptions adopted
In preparing these financial statements the company has taken
advantage of all disclosure exemptions conferred by FRS 101.
Therefore, these financial statements do not include:
-- certain comparative information as otherwise required by EU endorsed IFRS;
-- certain disclosures regarding the company's capital;
-- a statement of cash flows;
-- the effect of future accounting standards not yet adopted;
-- share-based payments;
-- the disclosure of the remuneration of key management personnel; and
-- disclosure of related party transactions with other wholly
owned members of the group headed by Attraqt Group plc.
Investments
The Company's investments are carried at cost less provisions
resulting from impairment. In testing for impairment, the carrying
value of the investment is compared to is recoverable amount, which
is its value in use.
ACCOUNTING JUDGEMENTS AND ESTIMATES
In the application of the Company's accounting policies, the
Directors are required to make judgements and estimates about the
carrying amounts of assets and liabilities that are not readily
apparent from other sources. The estimates and associated
assumptions are based on historical experience and other factors
that are considered to be relevant. Actual results may differ from
these estimates. There were no material judgements or estimates
used on application of IFRS 9 Financial Instruments or IFRS 15
Revenue from contracts with customers, there were no contracts that
straddled year end which required any judgement. The following
accounting policies have been identified as involving particularly
complex judgements or subjective estimates:
Estimates
-- Share based payments
Please refer to note 3 and note 17 of the Consolidated Financial
Statements.
-- Investments
The Company's investments in subsidiaries are carried at cost
less provisions resulting from impairment. Where there are
indicators of impairment, the carrying value of the investment is
compared to its recoverable amount, being its value-in-use (Note
2).
-- Intercompany receivables
The Company's intercompany receivable balance is carried at
amortised cost less provision for expected credit losses,
management have assessed the probability of default to estimate the
impact of credit loss (Note 7).
2. INVESTMENTS
2020 2019
GBP'000 GBP'000
As at 1 January 39,105 24,405
Additions 1,886 14,700
As at 31 December 40,991 39,105
As at 31 December 2020, the subsidiaries of Attraqt Group plc,
are shown in note 13 of the Consolidated Group financial
statements.
The Company's investment in subsidiaries have been tested for
impairment by comparison against the underlying value of the
subsidiaries' assets based on value in use calculated using the
same assumptions as noted for the testing of goodwill impairment in
note 12 of the Group financial statements.
3. TRADE AND OTHER RECEIVABLES
2020 2019
GBP'000 GBP'000
Prepayments 115 82
Trade receivables 106 113
VAT 111 19
332 214
The fair values of trade and other receivables are not
materially different to their carrying values.
4. TRADE AND OTHER PAYABLES
2020 2019
GBP'000 GBP'000
Trade payables 133 27
Other payables 350 -
Deferred income 81 85
Accruals 45 49
609 161
All financial liabilities held by the Company at the end of the
reporting period are classified as held at amortised cost.
5. SHARE CAPITAL
Allocated, called up and fully paid
2020 2020 2020 2019 2019 2019
GBP'000 GBP'000 GBP'000 GBP'000
Number Share capital Share Premium Number Share capital Share Premium
of Shares of Shares
Ordinary shares of GBP0.01
each
At 1 January 180,048,207 1,800 48,516 106,368,589 1,064 30,108
Shares issued for cash
during the year 12,500,000 125 3,619 63,333,334 633 15,718
Shares issued to Early
Birds sellers as part of
the acquisition during
the period 3,600,964 36 1,116 10,346,284 103 2,690
----------- ------------- ------------- ----------- ------------- -------------
At 31 December 196,149,171 1,961 53,251 180,048,207 1,800 48,516
=========== ============= ============= =========== ============= =============
The Company raised GBP4,000,000 before expenses, by private
placing of 12,500,000 1p Ordinary shares at 32p on 1 October 2020.
3,600,964 Ordinary shares were issued to the sellers as
consideration for the asset purchase of the Aleph software. In
2019, the Company raised GBP17,100,000, before expenses, by a
private placing of 63,333,334 1p Ordinary shares at 27p on 29 May
2019. 10,346,284 Ordinary shares were issued to the sellers as
consideration for the acquisition of Early Birds SAS.
6. SHARE BASED PAYMENTS
For details of the share based payments please refer to the
Group note 17.
7. FINANCIAL INSTRUMENTS
2020 2019
GBP'000 GBP'000
Trade and intercompany receivables 12,449 8,849
---------------------------------------- ------- -------
Financial assets at amortised cost 12,449 8,849
Trade and other payables 528 76
Financial liabilities at amortised cost 528 76
Intercompany receivables have been assessed and it has been
considered no entity requires a loss allowance based on a review of
future cash flows over the next 5 years, the risk of default is
considered to be negligible an no allowance has been recognised
against this balance (2019: GBP486,000).
Amounts owed from intercompany balances bear interest at 0.01%
per annum (2019: nil). The balances are unsecured and repayable on
demand, the Company does not intend to request repayment of these
balances and therefore these have been classified as
non-current.
8. EMPLOYEES
The company had no employees during the year (2019: none)
excluding directors. Further information about the remuneration of
the directors is provided in the remuneration report on page 24
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
FR BBLLFFXLFBBD
(END) Dow Jones Newswires
March 11, 2021 02:00 ET (07:00 GMT)
Attraqt (LSE:ATQT)
Historical Stock Chart
From Mar 2024 to Apr 2024
Attraqt (LSE:ATQT)
Historical Stock Chart
From Apr 2023 to Apr 2024
