INX I-nexus Global Plc

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

1.    General information

i-nexus Global plc (the "Company") and its subsidiaries (together, the Group) is a specialist provider of cloud based strategy software and associated professional services. 

The Company is a public limited company domiciled in the UK and incorporated in England and Wales (registered number 11321642) and its registered office is 27-28 Eastcastle Street, London, W1W 8DH.

The interim condensed consolidated financial statements were approved for issue on 2 May 2024.

These condensed consolidated interim financial statements do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. Statutory accounts for the year ended 30 September 2023 were approved by the Board of Directors on 20 December 2023 and delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statements under section 498 of the Companies Act 2006.

2.    Basis of preparation

These condensed consolidated interim financial information for the six months ended 31 March 2024 have not been audited or reviewed by the auditors. The interims have been prepared in accordance with the Disclosure and Transparency Rules of the Financial Services Authority and with IAS 34, 'interim financial reporting'. These condensed consolidated interim financial statements should be read in conjunction with the annual financial statements for the year ended 30 September 2023, which have been prepared in accordance with UK adopted international accounting standards and company law. The interim condensed consolidated financial information has been prepared on a going concern basis and is presented in Sterling to the nearest £1.

Going concern

After reviewing the Group's forecasts and projections, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, being a period of at least twelve months from the date of approval of these financial statements. The Group therefore continues to adopt the going concern basis in preparing its financial statements. Information used to make this decision is detailed below.

A scenario testing exercise, in which the Directors prepared detailed cash flow forecasts for the period covered by the going concern forecast, was performed. The forecasts take into account the Directors' views of current and future economic conditions that are expected to prevail over the period including  various  scenarios  which  reflect  growth  plans,  opportunities,  risks  and  mitigating  actions. 

Alongside management's base case forecast, the Group prepared a downside scenario. Under this scenario, the Group has given consideration to the potential actions available to management to mitigate the impact of these sensitivities, in particular the discretionary nature of certain costs incurred by the Group alongside the employment of further mitigating actions in order to ensure the continued availability of funds.

Financial performance in H2 2024 is not expected to be materially impacted from current levels due to the long-range revenue visibility achieved through the recurring revenue business model. These recurring revenues, representing 90% of total revenue, are considered resilient given the majority are on multi- year terms. The forecast also assumed that the Group does not have access to any further external funding.

The Group continues to monitor the collection of monies from clients with no material delays in payment being cited. The business benefits from an Annual Licence Fee Model in which software licence fees are received annually in advance.

3.    Accounting policies

The accounting policies adopted are consistent with those of the previous financial statements, except in respect of taxes on income which, in the interim periods, are accrued using the tax rate that would be applicable to expected total annual performance. New and amended standards and interpretations need to be adopted in the first interim financial statements issued after their effective date. There are no new IFRSs or IFRICs that are effective for the first time for this interim period that would be expected to have a material impact on the financial statements.

4.    Estimates

The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may differ from these estimates. In preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 30 September 2023, with the exception of changes in estimates that are required in determining the provision for income taxes.

5.    Segmental reporting

The Group has one single business segment and therefore all revenue is derived from the rendering of services as stated in the principal activity. The Group operates in six geographical segments, as set out below. This is consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance, has been identified as the management team comprising the executive directors who make strategic decisions.

6.    Earnings per share

The calculation of basic and diluted loss per share for the six months to 31 March 2024 was based upon the loss attributable to ordinary shareholders of £238,436 (six months to 31 March 2023: loss of £491,175, year ended 30 September 2023: loss of £756,070) and a weighted average number of ordinary shares in issue of 29,571,605 (six months to 31 March 2023: 29,571,605, year ended 30 September 2023: 29,571,605), calculated as follows:

Weighted average number of ordinary shares

Earnings per share                                                                        (0.01)                            (0.02)                          (0.03)

7.    Principal risks and uncertainties

Pursuant to the requirements of the Disclosure and Transparency Rules the Group provides the following information on its principal risks and uncertainties. The Group considers strategic, operational and financial risks and identifies actions to mitigate those risks. These risk profiles are updated at least annually.  The principal risks and uncertainties detailed within the Group's 2023 Annual Report remain applicable for the first six months of the financial year. The Group's 2023 Annual Report is available from the i-nexus website: www.i-nexus.com/company/investor-center/

8.    Forward-looking statements

This announcement may include certain forward-looking statements, beliefs or opinions, including statements with respect to the Group's business, financial condition and results of operations.  These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "anticipates", "targets", "aims", "continues", "expects", "intends", "hopes", "may", "will", "would", "could" or "should" or, in each case, their negative or other various or comparable terminology.  These statements are made by the Directors in good faith based on the information available to them at the date of this announcement and reflect the Directors beliefs and expectations. By their nature these statements involve risk and uncertainty because they relate to events and depend on circumstances that may or may not occur in the future. A number of factors could cause actual results and developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, developments in the global economy, changes in government policies, spending and procurement methodologies, and failure in health, safety or environmental policies.