TIDMPEN
RNS Number : 7499N
Pennant International Group PLC
27 September 2023
FOR IMMEDIATE RELEASE 27 September 2023
PENNANT INTERNATIONAL GROUP PLC
Interim Results for the six months ended 30 June 2023
EBITA of GBP0.5 million; fourth consecutive period of EBITA
profit; record gross margin;
on track to meet full year expectations;
Pennant International Group plc (AIM:PEN) ("Pennant", the
"Group" or "Company"), the IPS software and services company,
announces its Interim Results for the six months ended 30 June 2023
(the "First Half", the "Period", or "H1 2023").
Commenting on the results, Chairman Philip Cotton said:
"I am pleased to report that the Group has maintained positive
earnings before interest, taxation and amortisation for a fourth
consecutive period, with profitability in-line with market
expectations for the year as a whole.
Our plan to re-engineer the business to build on software,
services and other higher-margin work - focusing on our unique
breadth of products and services across multiple Integrated Product
Support disciplines - is producing results."
Key points: Financial
-- Group revenues for the Period of GBP7.1 million (H1 2022: GBP6.9 million)
-- 46% of revenues generated from software licensing and associated activities (H1 2022: 52%)
-- Record gross margin of 47% (H1 2022: 41%)
-- Earnings before interest, taxation and amortisation (EBITA)
of GBP0.5 million (H1 2022: EBITA of GBP0.1 million)
-- Earnings before interest, taxation, depreciation and
amortisation (EBITDA) of GBP0.8 million (H1 2022: EBITDA of GBP0.4
million)
-- Loss before tax of GBP0.4 million (H1 2022: loss before tax of GBP0.8 million)
-- Net debt at Period end of GBP1.9 million (H1 2022: net debt of GBP4.1 million)
-- Trade and other receivables due at Period end of GBP4.2 million (H1 2022: GBP5.1 million)
-- Basic loss of (1.02)p per share (H1 2022: basic loss per share of (2.21)p per share)
-- Unrelieved tax losses of GBP7.1 million carried forward (H1
2022: GBP6.7 million carried forward)
-- Three-year order book at Period end stood at GBP25 million (H1 2022: GBP27 million)
Note: the above results are stated before circa GBP0.1 million
of exceptional transaction and integration costs associated with
the acquisition of Track Access Productions Limited. See note 5 to
the Notes for a reconciliation between operating loss, EBITDA and
EBITA.
Key points: Operational
-- Good progress on the circa GBP9 million Boeing Defence United
Kingdom (BDUK) Apache upgrade programme, which is running on time
and on budget, with final deliveries scheduled for completion in
September 2024.
-- Acquisition of Track Access Productions Limited ("TAP") in
April 2023, broadening Pennant's existing rail offering and
customer base, and adding circa GBP0.3 million of
subscription-based recurring revenues.
-- Version 2 of GenS released in May 2023, with first commercial sale achieved in June 2023.
-- Order intake secured during the First Half of GBP6.5 million,
which resulted in a Period-end three-year contracted order book of
GBP25 million.
Commenting on the Group's prospects, Philip Cotton added:
"Given the burgeoning technological complexity of military,
aviation and rail platforms, the demand for innovative Integrated
Product Support solutions is only likely to grow, particularly with
increasing defence budgets across the Western world.
Our strategy has been formulated with precisely these factors in
mind and with our developing S-Series solutions, we are well-placed
to capitalise."
This announcement contains inside information for the purposes
of Article 7 of the UK version of Regulation (EU) No 596/2014 which
is part of UK law by virtue of the European Union (Withdrawal) Act
2018, as amended ("MAR"). Upon the publication of this announcement
via a Regulatory Information Service, this inside information is
now considered to be in the public domain.
Enquiries:
Pennant International Group www.pennantplc.com
plc
Philip Walker, CEO
David Clements, Commercial &
Risk Director +44 (0) 1452 714 914
Michael Brinson, CFO
WH Ireland Limited (Nomad and https://www.whirelandplc.com/capital-markets
Broker)
Mike Coe
Sarah Mather +44 (0) 20 7220 1666
Walbrook PR (Financial PR) pennant@walbrookpr.com
Paul Vann +44 (0)20 7933 8780
Joe Walker Mob: +44 (0)7768 807631
Pennant International Group plc
Interim Report for the six months ended 30 June 2023
Chairman's Statement
Results and dividend
On behalf of the Board of Directors, I can report that the Group
recorded revenues for the Period of GBP7.1 million (H1 2022: GBP6.9
million).
For the fourth consecutive six-month period, EBITA was positive
at GBP0.5 million, an improvement over the EBITA profit of GBP0.1
million recorded for the comparable period in 2022.
The gross profit margin for the Period increased to 47% (H1
2022: 41%) due to software licence revenues and sound performance
across a number of programmes.
This resulted in a significantly reduced pre-tax loss for the
Period of GBP0.4 million which compares with a pre-tax loss of
GBP0.8 million in H1 2022.
Administrative costs for the Period were GBP3.6 million (H1
2022: GBP3.6 million), pleasingly being held at the same level as
12 months ago, despite general inflationary pressures.
At the Period-end net debt stood at GBP1.9 million (H1 2022: net
debt of GBP4.1 million), as the Group utilised its overdraft
facilities to fund programme expenditure (for which the cash
milestones are expected to unwind in the latter part of the year
and into early 2024) and internally-funded development of the GenS
software suite.
Total assets at the Period end were GBP20.5 million (H1 2022:
GBP21.9 million).
The basic loss per share for the Half Year was (1.02)p compared
to a loss of (2.21)p for the same period last year.
A minimal effective tax rate is expected for the full year due
to unrelieved tax losses of GBP7.1 million which have been carried
forward at the Half Year (H1 2022: GBP6.7 million) and with R&D
tax credit claims in progress.
The Group's three-year order book stood at GBP25 million at
Period-end (H1 2022: GBP27 million) and is scheduled for delivery
as follows: GBP8.1 million in H2 2023, GBP8.7 million in 2024,
GBP5.3 million in 2025 and the balance in H1 2026.
The Directors have concluded that it is in the best interests of
the Company and its shareholders to retain cash at this time for
expected working capital requirements, particularly as the
internally-funded GenS development programme reaches its critical
later stages.
The Board will therefore not be declaring an interim dividend
but will continue to review the Group's dividend policy based on
performance, cash generation and working capital and investment
requirements.
I would like to thank all Pennant employees, who have worked
tirelessly during the First Half, drawing on Pennant's long
heritage to deliver our impressive breadth of products and
capabilities.
Operational Commentary
Each region, and business line, made a significant contribution
during the Period as follows:
Revenue by Region GBP
m
UK & Europe 3.7
----
North America 2.2
----
Australasia 1.2
----
Total 7.1
----
A key strategic focus of the Group is to continue to grow the
proportion of revenues which derive from software and related
activities. During the Period, circa 46% of revenues derived from
software and related services; 56% of revenues were of a recurring
nature.
Revenue by business line GBP
m
Software Licences 0.7
----
Software Maintenance 0.7
----
Software Services 1.9
----
Engineered-to-order training
solutions 1.9
----
Generic training solutions 0.5
----
Technical Services 1.4
----
Total 7.1
----
Commentary is provided on the various business lines below.
Integrated Product Support (IPS) Software Suite
The Group's IPS software suite comprises Pennant's three
proprietary software product suites, OmegaPS, Analyzer and R4i.
OmegaPS is a sophisticated logistics data tool; Analyzer uses
recognised processes and analytical methods to develop, store and
evaluate information about operational equipment and the support
environment; and R4i provides its users with a dynamic,
S1000D-compliant technical documentation solution.
In addition, Pennant provides long-term recurring consultancy,
support and maintenance services on both software suites to its
many customers which include the Canadian and Australian defence
departments and their respective supply bases.
The Period saw continuing demand for these products and related
consultancy.
Product Investment
Capital investment continued in the OmegaPS successor product,
'GenS' to realise the vision of a cutting-edge, end-to-end solution
for customers' data and documentation needs. During the Period, the
Group invested circa GBP0.6 million in this development
project.
GenS represents the next generation of Logistics Support
Analysis/Logistics Product Data technology, with a modern, easy to
use interface and functionality, deployable 'on premise' or as a
software as a service. GenS, when combined with the Analyzer and
R4i S1000D Technical Publishing suite will transform customers'
Integrated Product Support capabilities into a truly integrated
digital capability and reduce programme delivery costs. Version 2
of GenS was released in May 2023, with the first commercial sale
achieved in June 2023.
The Group also has an active pipeline of potential product
innovations and improvements that are undergoing a detailed
assessment process, including the use of Artificial Intelligence to
integrate our IPS software database and the use of augmented /
mixed reality in the delivery of our technical data to the end
user.
Training Technology
Training is an important sub-discipline within the IPS field and
Pennant designs and builds generic and platform-specific training
technology (and provides related technical and support services)
for the defence, aerospace, rail and other safety critical
industries.
The Group's key training-related contract during the Period was
the UK Apache upgrade programme, under which Pennant is upgrading
four different types of Apache training device for the UK Army.
The Group is developing modular software-based training
solutions and during the Period launched the Engine Systems
Starting Trainer (which combines a high-fidelity graphical model of
an engine with Pennant's proprietary emulation technology), which
has gone out on trial with a selected key customer.
Programme Delivery
Major Programme update : Pennant continues to make good progress
on its contract with BDUK for the UK Apache upgrade programme. By
the end of the Period, Preliminary Design Review had been
successfully passed on all four devices, whilst on two of the
devices, Critical Design Review (the final design sign-off) had
also been achieved. The contract remains on track for completion in
September 2024.
Commercial aerospace projects : the Group continues to progress
its two North American software and services contracts for the
development and delivery of its new technical publications solution
for the commercial aviation market. The projects have involved the
transfer of complex legacy data into a new solution which has
resulted in an enlarged scope and technical challenges. The
contracts are now expected to be completed during the first half of
2024 with the associated milestones expected to unwind in early
2024.
Acquisition update
We successfully acquired Track Access Productions Limited
("TAP") in April 2023 for an initial consideration of GBP798,500,
funded from existing resources, and a deferred consideration of
GBP175,500 payable in April 2024 . TAP is a provider of driver
training, route mapping and route familiarisation services to the
UK rail industry and bolsters the Group's 'third pillar' of rail
products and services.
I am pleased that TAP is performing in line with the Board's
expectations. Pennant's combined Track Access business unit
(comprising TAP and Track Access Services) had a successful First
Half in respect of order intake and is on course to deliver
turnover of approximately GBP900,000 for the year ending 31
December 2023 on an annualised basis, with an operating profit of
approximately GBP400,000.
Targeted acquisitions, which add new strategic customers and/or
add to our software capabilities, remain a key part of the Group's
strategy for growth.
Post Period-end
Further positive outcomes have been achieved since
Period-end:
-- Sales: circa GBP1.5 million of new orders for software and
services were received across July and August, taking orders
received during 2023 to a total of GBP8.1 million. This included a
new contract with the Australian Defence Force worth AUD$1.2
million over 12 months, secured in early July.
-- New partnership: the Group announced a strategic partnership
with Aquila Learning to collaborate on a number of projects,
including the integration of the ALaRMS - Aquila Learning (and
Requirements /Resource/Record) Management System into the market
leading Pennant IPS software suite (GenS, Analyzer and R4i). The
integration will realise natural synergies in both product and
customer base and broaden our S-Series capabilities.
-- Cash: the Group secured a GBP1 million increase in its
overdraft facility (to GBP4 million). This is available from
September 2023 to January 2024 to provide short-term working
capital contingency pending the realisation of programme milestones
referred to above, and the continued investment ahead of full
product launch of GenS and the integrated IPS software suite in
April 2024.
Outlook
Given the burgeoning technological complexity of military,
aviation and rail platforms, the demand for innovative Integrated
Product Support solutions is only likely to grow, particularly with
increasing defence budgets across the Western world.
Our strategy has been formulated with precisely these factors in
mind and with our developing integrated S-Series solutions, we are
well-placed to capitalise.
We continue to explore opportunities for partnerships and
acquisitions that will enhance our capabilities and accelerate our
strategic objectives.
We also remain focused on ensuring a lean, productive and
effective organisation; costs remain well-controlled following the
decisive restructuring in 2021 and we are confident of meeting
market expectations for the year as a whole.
P Cotton
Chairman
PENNANT INTERNATIONAL GROUP plc
CONSOLIDATED INCOME STATEMENT for the six months ended 30 June
2023
Notes
Six months Six months Year ended
ended 30 June ended 30 June 31 December
2023 Unaudited 2022 Unaudited 2022 Audited
------------------------- ---------------- ---------------- --------------
GBP000s GBP000s GBP000s
------------------------- ---------------- ---------------- --------------
Revenue 7,092 6,945 13,686
------------------------- ---------------- ---------------- --------------
Cost of sales (3,750) (4,110) (7,897)
------------------------- ---------------- ---------------- --------------
Gross profit 3,342 2,835 5,789
------------------------- ---------------- ---------------- --------------
Administration expenses (3,616) (3,558) (6,902)
------------------------- ---------------- ---------------- --------------
Other income 75 50 123
------------------------- ---------------- ---------------- --------------
Operating (loss) (199) (673) (990)
------------------------- ---------------- ---------------- --------------
Finance costs (176) (137) (377)
------------------------- ---------------- ---------------- --------------
Finance income - - 2
------------------------- ---------------- ---------------- --------------
(Loss) before taxation (375) (810) (1,365)
------------------------- ---------------- ---------------- --------------
Taxation 2 - - 464
------------------------- ---------------- ---------------- --------------
(Loss) for the
period (375) (810) (901)
------------------------- ---------------- ---------------- --------------
Earnings per share 3
------------------------- ---------------- ---------------- --------------
Basic (1.02p) (2.21p) (2.45p)
------------------------- ---------------- ---------------- --------------
Diluted (1.02p) (2.21p) (2.45p)
------------------------- ---------------- ---------------- --------------
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 30 June 2023
Six months Six months
ended 30 ended 30 Year ended
June 2023 June 2022 31 December
Unaudited Unaudited 2022 Audited
----------- ----------- --------------
GBP000s GBP000s GBP000s
----------- ----------- --------------
(Loss) attributable to equity
holders of the parent (375) (810) (901)
Other comprehensive income
Exchange differences on (124) 364 109
translation of foreign operations
----------------------------------- ----------- --------------
Prior year amortization
adjustment - 39
----------------------------------- ----------- --------------
Deferred tax credit - property,
plant and equipment and
intangibles - 248
----------------------------------- ----------- ----------- --------------
(Loss) attributable to
equity (499) (446) (505)
holders of the parent
----------- ----------- --------------
PENNANT INTERNATIONAL GROUP plc
CONSOLIDATED STATEMENT OF FINANCIAL POSITION as at 30 June
2023
Year ended
Six months Six months 31 December
ended 30 June ended 30 June 2022
2023 Unaudited 2022 Unaudited Audited
GBP000s GBP000s GBP000s
---------------- ---------------- -------------
Non-current assets
---------------- ---------------- -------------
Goodwill 2,459 2,546 2,507
---------------- ---------------- -------------
Other intangible assets 5,251 4,681 4,690
---------------- ---------------- -------------
Property plant and equipment 3,958 5,817 4,002
---------------- ---------------- -------------
Right Of Use Asset 624 567 503
---------------- ---------------- -------------
Deferred tax asset 1,530 836 1,497
---------------- ---------------- -------------
Total non-current assets 13,822 14,447 13,199
---------------- ---------------- -------------
Current assets
---------------- ---------------- -------------
Inventories / work-in-progress 1,207 1,347 1,001
---------------- ---------------- -------------
Trade and other receivables 4,204 5,146 4,129
---------------- ---------------- -------------
Cash and cash equivalents 749 585 1,107
---------------- ---------------- -------------
Current tax asset 492 330 354
---------------- ---------------- -------------
Total current assets 6,652 7,408 6,591
---------------- ---------------- -------------
Total assets 20,474 21,855 19,790
---------------- ---------------- -------------
Current liabilities
---------------- ---------------- -------------
Trade and other payables 5,871 4,780 5,862
---------------- ---------------- -------------
Current tax liabilities 151 89 155
---------------- ---------------- -------------
Obligations under finance
and operating leases 351 191 174
---------------- ---------------- -------------
Bank overdraft 2,668 4,741 1,533
---------------- ---------------- -------------
Deferred consideration
on acquisition 615 335 327
---------------- ---------------- -------------
Total current liabilities 9,656 10,136 8,051
---------------- ---------------- -------------
Net current (liabilities)
/ assets (3,004) (2,728) (1,460)
---------------- ---------------- -------------
Non-current liabilities
---------------- ---------------- -------------
Obligations under finance
and operating leases 323 444 385
---------------- ---------------- -------------
Deferred tax liabilities - - -
---------------- ---------------- -------------
Contingent consideration
on acquisition 152 419 552
---------------- ---------------- -------------
Warranty provisions 108 122 107
---------------- ---------------- -------------
Total non-current liabilities 583 985 1,044
---------------- ---------------- -------------
Total liabilities 10,239 11,121 9,095
---------------- ---------------- -------------
Net assets 10,235 10,734 10,695
---------------- ---------------- -------------
Equity
---------------- ---------------- -------------
Share capital 1,840 1,836 1,840
---------------- ---------------- -------------
Share premium 5,366 5,367 5,366
---------------- ---------------- -------------
Capital redemption reserve 200 200 200
---------------- ---------------- -------------
Retained earnings 2,508 1,900 2,844
---------------- ---------------- -------------
Translation reserve 211 590 335
---------------- ---------------- -------------
Revaluation reserve 110 841 110
---------------- ---------------- -------------
Total equity 10,235 10,734 10,695
---------------- ---------------- -------------
PENNANT INTERNATIONAL GROUP plc
CONSOLIDATED STATEMENT OF CASH FLOWS for the six months ended 30
June 2023
Six months Six months Year ended
ended 30 ended 30 June 31 December
June 2023 2022 2022
Unaudited Unaudited Audited
GBP000s GBP000s GBP000s
----------- --------------- -------------
Net cash generated
from operating activities 159 47 2,572
Investing activities
----------- --------------- -------------
Interest received - - 2
----------- --------------- -------------
Payment for acquisition
of subsidiary, net
of cash acquired (995) (559) (547)
----------- --------------- -------------
Purchase of intangible
assets (730) (341) (1,150)
----------- --------------- -------------
Purchase of property
plant and equipment (107) (13) (63)
----------- --------------- -------------
Proceeds from disposal
of property, plant
and equipment - - 2,117
----------- --------------- -------------
Net cash used in investing
activities (1,832) (913) 359
----------- --------------- -------------
Financing activities
----------- --------------- -------------
Proceeds from sale
of ordinary shares - 26 24
----------- --------------- -------------
Net (repayment of)
obligations under
operating lease (97) (103) (263)
----------- --------------- -------------
Net cash used in financing
activities (97) (77) (239)
----------- --------------- -------------
Net (decrease) /
increase in cash and
cash equivalents (1,770) (943) 2,692
----------- --------------- -------------
Cash and cash equivalents
at beginning of period (426) (3,540) (3,540)
----------- --------------- -------------
Effect of foreign
exchange rates 277 327 422
----------- --------------- -------------
Cash and cash equivalents
at end of period (1,919) (4,156) (426)
----------- --------------- -------------
PENNANT INTERNATIONAL GROUP plc
STATEMENT OF CHANGES IN EQUITY for the six months ended 30 June
2023
Share Share Capital Retained Translation Revaluation Total equity
capital premium redemption earnings reserve reserve
reserve
------------- ------------
GBP000s GBP000s GBP000s GBP000s GBP000s GBP000s GBP000s
------------- ------------- ------------ ------------ ------------ ------------ -------------
At 31 December
2021 1,832 5,345 200 2,687 226 854 11,144
------------- ------------- ------------ ------------ ------------ ------------ -------------
(Loss) for the
year - - - (901) - - (901)
------------- ------------- ------------ ------------ ------------ ------------ -------------
Other
comprehensive
income - - - 1,031 109 (744) 396
------------- ------------- ------------ ------------ ------------ ------------ -------------
Total
comprehensive
income 1,832 5,345 200 2,817 335 110 10,639
------------- ------------- ------------ ------------ ------------ ------------ -------------
Issue of New
Ordinary
Shares 8 21 - (2) - - 27
------------- ------------- ------------ ------------ ------------ ------------ -------------
Recognition of
share based
payment - - - 29 - - 29
------------- ------------- ------------ ------------ ------------ ------------ -------------
Transfer from - - - - - - -
revaluation
reserve
------------- ------------- ------------ ------------ ------------ ------------ -------------
At 31 December
2022 1,840 5,366 200 2,844 335 110 10,695
------------- ------------- ------------ ------------ ------------ ------------ -------------
(Loss) for the
period - - - (375) - - (375)
------------- ------------- ------------ ------------ ------------ ------------ -------------
Other
comprehensive
income - - - - (124) - (124)
------------- ------------- ------------ ------------ ------------ ------------ -------------
Total
comprehensive
income 1,840 5,366 200 2,469 211 110 10,196
------------- ------------- ------------ ------------ ------------ ------------ -------------
Issue of New - - - - - - -
Ordinary
Shares
------------- ------------- ------------ ------------ ------------ ------------ -------------
Recognition of
share based
payment - - - 39 - - 39
------------- ------------- ------------ ------------ ------------ ------------ -------------
Transfer from - - - - - - -
revaluation
reserve
------------- ------------- ------------ ------------ ------------ ------------ -------------
At 30 June
2023 1,840 5,366 200 2,508 211 110 10,235
------------- ------------- ------------ ------------ ------------ ------------ -------------
PENNANT INTERNATIONAL GROUP plc
NOTES TO THE FINANCIAL INFORMATION for the six months ended 30
June 2023
1. Basis of preparation
This condensed set of financial statements has been prepared
using accounting policies expected to be adopted for the year
ending 31 December 2023.
These accounting policies are drawn up in accordance with
International Financial Reporting Standards (IFRSs) in conformity
with the requirements of the Companies Act 2006.
The comparative figures for the year ended 31 December 2022 set
out in this Interim Report are not statutory accounts. A copy of
the statutory accounts for that year has been delivered to the
Registrar of Companies. The auditors reported on those accounts;
their report was unqualified, however attention was drawn to a
material uncertainty relating to Going Concern in respect of
payments on one major programme. The auditors' report did not
contain a statement under s498 (2) or s498(3) of the Companies Act
2006. .
AIM-quoted companies are not required to comply with IAS34
'Interim Financial Reporting' and the Company has taken advantage
of this exemption.
2. Taxation
The taxation charge for the Period is based on an estimated
effective tax rate of zero, being the estimated effective rate of
tax that is likely for the full year to 31 December 2023.
3. Earnings per share
Basic earnings per share are calculated by dividing the profit
for the period attributable to the shareholders by the weighted
average number of shares in issue. The calculation of diluted
earnings per share does not take into account the potentially
diluting effect of share options as this impact would be
antidilutive to the losses attributable to equity shareholders.
Six months ended Six months ended Year ended 31
30 June 2023 30 June 2022 December 2022
Unaudited Unaudited Audited
GBP000s GBP000s GBP000s
------------------------------- ----------------- ---------------
Earnings
------------------------------- ----------------- ---------------
Net (loss) attributable
to equity shareholders (375) (810) (901)
------------------------------- ----------------- ---------------
Number of shares Number Number Number
------------------------------- ----------------- ---------------
Weighted average
number of ordinary
shares 36,790,447 36,674,834 36,725,879
------------------------------- ----------------- ---------------
Diluting effect of
share options 1,626,667 1,939,043 1,414,228
------------------------------- ----------------- ---------------
Weighted average
number of ordinary
shares for the purpose
of dilutive earnings
per share 38,417,114 38,613,877 38,140,107
------------------------------- ----------------- ---------------
Earnings per share
(basic) (1.02p) (2.21p) (2.45p)
------------------------------- ----------------- ---------------
Earnings per share
(diluted) (1.02p) (2.21p) (2.45p)
------------------------------- ----------------- ---------------
PENNANT INTERNATIONAL GROUP plc
NOTES TO THE FINANCIAL INFORMATION for the six months ended 30
June 2023 (continued)
4. Cash generated from operations
Six months Six months Year ended
ended 30 June ended 30 June 31 December
2023 2022 2022
Unaudited Unaudited Audited
GBP000s GBP000s GBP000s
--------------- --------------- -------------
(Loss) for the
period (375) (810) (901)
--------------- --------------- -------------
Finance income - - (2)
--------------- --------------- -------------
Finance costs 176 137 377
--------------- --------------- -------------
Income tax credit - - (464)
--------------- --------------- -------------
Withholding tax - - (2)
--------------- --------------- -------------
Depreciation
of property,
plant and equipment 151 215 373
--------------- --------------- -------------
Depreciation
of right of use
assets 91 84 183
--------------- --------------- -------------
Profit on disposal
of property - - (374)
--------------- --------------- -------------
Amortisation
of other intangible
assets 705 741 1,519
--------------- --------------- -------------
R&D tax credit (75) (50) (113)
--------------- --------------- -------------
Share-based payment 39 10 29
--------------- --------------- -------------
Operating cash
flows before
movement in working
capital 712 327 625
--------------- --------------- -------------
(Increase) /
decrease in receivables (75) (618) 398
--------------- --------------- -------------
(Increase) /
decrease in inventories (206) (482) (136)
--------------- --------------- -------------
Increase / (decrease)
in payables and
provisions 85 1,262 2,252
--------------- --------------- -------------
Cash generated
from operations 516 489 3,139
--------------- --------------- -------------
Tax (paid) /
received (142) (278) (306)
--------------- --------------- -------------
Interest paid (215) (164) (261)
--------------- --------------- -------------
Net cash generated
from operations 159 47 2,572
--------------- --------------- -------------
5. Reconciliation of operating loss to EBITA and EBITDA for the
Period
Six months Six months Year ended
ended 30 June ended 30 June 31 December
2023 2022 2022
Unaudited Unaudited Audited
GBP000s GBP000s GBP000s
--------------- --------------- -------------
(Loss) for the period
including exceptional
costs (475) (810) (901)*
--------------- --------------- -------------
Exceptional acquisition 100 - -
costs
--------------- --------------- -------------
(Loss) for the period
excluding exceptional
costs (375) (810) (901)
--------------- --------------- -------------
Interest (net) 176 137 375
--------------- --------------- -------------
Taxation - - (464)
--------------- --------------- -------------
Amortisation 705 741 1,519
--------------- --------------- -------------
EBITA 506 68 529
--------------- --------------- -------------
Depreciation of property,
plant and equipment 151 215 373
--------------- --------------- -------------
Depreciation of right
of use assets 91 84 183
--------------- --------------- -------------
EBITDA 748 367 1,085
--------------------------- --------------- --------------- -------------
*The loss for the year ended 31 December 2022 includes a profit
on sale of land and buildings of GBP374k
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