Preliminary Results

RNS Number : 6595L

Actual Experience PLC

13 January 2016

 

13 January 2016

Actual Experience plc
(the "Company", "Actual Experience" or "Actual")

Preliminary Results for the year ended 30 September 2015

Actual Experience plc (AIM: ACT), the analytics-as-a-service company, is pleased to announce its preliminary results for the year ended 30 September 2015.

Highlights

·      Signed two largest contracts to date, representing significant revenue opportunities and compelling validation of Actual's technology and strategy:

o  May 2015, 3 year agreement with an organisation in the top 100 of Forbes' Most Valuable Brands

o  September 2015, 3 year agreement with Verizon Enterprise Services, one of the world's leading communications businesses

·      Secured £15.2m fundraise in June 2015 and begun investment into operational infrastructure, technology development, people, brand and marketing to support the opportunities

·      Strengthened operational team, including appointment of Robin Young as Chief Operating Officer

·      Progress towards additional commercial agreements with some of the world's largest technology and service companies

·      Revenues increased 23% to £0.70m (2014: £0.57m)

Post Year-End Highlights

·      December 2015, soft launch of Verizon's enhanced managed network reporting capability service, incorporating Actual's analytics

·      Significant order with a leading US based technology company

Dave Page, CEO of Actual Experience plc, commented: "We have made significant progress across all aspects of our business this year. While the financial results show growth, the real success of the year was the progress made in our commercial relationships with major channels, with two important contracts signed during the year and a further agreement announced today.

"Following the successful fundraise in June 2015 we have put in place many of the building blocks needed to capitalise on our vast, and growing, market opportunity. In this financial year we will continue to invest in people and technology, develop further sales channels, both channel and direct and also expect to see a more meaningful revenue contribution from our successes to date.  We look to the future with confidence."  

Enquiries:

Actual Experience plc Dave Page, Chief Executive Officer Steve Bennetts, Chief Financial Officer	via Alma PR
N+1 Singer Advisory LLP Shaun Dobson, Lauren Kettle	Tel: [phone]
Alma PR Josh Royston, Caroline Forde	Tel: [phone]

About Actual Experience 

Our data analytics are the missing link between digital experience quality and improvements in the digital business. We use the actual experience of the end user as the lens that enables our customers to focus their resources on achieving consistent quality and improving business performance.  

Our unique approach creates 'digital users' that test digital supply chains continuously and automatically from where data is consumed to the point of origin. We can objectively measure the actual experience of any user and pinpoint the root causes that prevent a consistent and positive experience.

Actual Experience is a listed-company on the London Stock Exchange (ACT). Our development headquarters are in Bath, UK, and we have offices in London, New York and Seattle. Actual Experience's unique digital analytics as a service is founded on ten years of cutting-edge research at Queen Mary University of London.

www.actual-experience.com

 

 

 

 

Chairman's Statement

Introduction

I am proud to present Actual Experience's full-year results for the year ending 30 September 2015. While the financial results show growth, with revenues increasing by 23% to £0.7m (2014: £0.57m), the real success of the year was the progress made in our commercial relationships with major channel partners, including the signing of two important contracts which we believe will lead to a significant increase in revenue growth.

Actual Experience's analytics are the missing link between digital experience quality and improvements in digital businesses. The analytics show the actual experience of the end user in a way that has never been done before. This enables our customers to focus their resources on achieving consistent digital quality and improving business performance. The potential impacts are cost savings, reduction in lost customer revenues and improved brand experience. We are proud to be leading what could become one of the biggest sectors of the digital marketplace.

The operational and commercial progress achieved in 2015 has left Actual Experience well positioned for the future. It has been a year characterised by a transition from start-up to a more structured organisation which will be better positioned to support our planned global growth. Following years of selling, testing, proving and evaluation, we signed our largest contracts to date with two global businesses. Actual Experience is now deploying its technology to analyse digital quality for a range of products and services both within their respective businesses and to their extensive customer networks. These represent significant revenue opportunities and serve as a compelling validation of our unique methodology of digital quality analysis.

In addition to the two contracts signed during the year, there are other channel partner opportunities in development with some of the world's largest technology and service companies. Combined, these opportunities have the potential to place us in front of many thousands of large global enterprise customers.

An opportunity of this scale requires strong operational infrastructure including the establishment of a robust around-the-clock global support capability, as well as an expanded sales and marketing presence and the further development of our technology, particularly into the mobile arena. To fund that investment we raised £15.2 million, before expenses, in June 2015 and have been pleased by the positive response displayed by the investment community.

Board

I am delighted that Robin Young has agreed to join the executive team as Chief Operations Officer; his extensive experience will be invaluable as we rapidly build our business. Robin will remain on the Board, as an Executive Director. We are in the process of appointing a new Non-executive Director and expect to announce further details in the near future.

Outlook

While we have taken many important steps on the path to building a world-class technology leader, there remains much to be achieved. We are confident of further progress in the year ahead as we move through to the next stages of commercialisation.

On behalf of the Board, I would like to thank all shareholders, customers and employees that have supported Actual Experience and who have played an integral part in the Company's successes to date. Actual Experience's journey is only just beginning and I look forward to the business fulfilling its considerable potential.

Stephen Davidson
Chairman

 

Chief Executive Officer's Review

Introduction
This year has been one of significant achievement for Actual Experience. Since our beginning in 2009 we have been developing our unique digital quality analytics and network of our channel partners. We are confident that Actual Experience has an innovation that has the potential to transform the quality of the digital world.

As a young company, with a very large commercial opportunity, we soon realised that the most effective way to take our technology to market would be by working with businesses that have an established global base of customers. Proving the potential of our technology to channel partners and building our technology into their global distribution processes are naturally time-consuming. This year we signed our first two agreements with channel partners. The first is with a major organisation, listed in the top 100 of Forbes' Most Valuable Brands. The second is with Verizon Enterprise Services, one of the world's leading communications businesses, who will be building our technology into one of their global service offerings. These agreements provide a compelling validation of both our technology and our strategy. Our focus in the year ahead is to begin to realise the potential of these initiatives and establish additional, similar relationships.

With increasing evidence of channel engagement, the Group is now focused on execution. The funds raised in June 2015 are being invested in resources that can effectively support our channel partners and customers anywhere in the world. Headcount has been increased in both the US and the UK and, for the first time, a significant investment is being made in marketing and brand to ensure that our offering is properly understood.

Market opportunity

The basis of Actual Experience's market opportunity is the continuing rapid growth of the digital world. A third of CEOs expect to attribute more than half their revenues to digital operations within five years¹, and nearly 50% of all business-to-business purchases will be made on digital platforms by the end of 2015, with $2 trillion in retail sales generated by digital sales and marketing platforms by 2016².

As the digital world has matured and become fully integrated into business and society, we believe that quality is becoming as significant to users of digital products and services as it is to businesses and consumers in the non-digital world. Digital quality increasingly will determine which companies create or lose valuable brand share.

Successful businesses have long been aware of the need to consistently improve the performance of their non-digital supply chains and are now committing greater resources to solutions for managing their increasingly complex digital supply chains. This creates a vast opportunity for Actual Experience.

The requirement to give workers and customers a consistent high-quality experience is paramount for digital brand leaders and Actual Experience has the solutions to meet their needs.

¹ Gartner: CEO Survey: Committing to Digital, 2015

² Six building blocks for creating a high-performing digital enterprise, McKinsey, 2015

Strategy

Actual Experience's 'analytics as a service' ('AaaS') has the potential to benefit the digital business of all organisations globally. We will service the global business markets primarily through channel partners, but will maintain select direct customer engagements.

 

Channel

Most of Group revenues to date have been achieved through direct sales activities. However, we believe that the market is so sizeable that it can only be addressed efficiently through relationships with large channel partners, leveraging their global footprint and sales teams. Over the coming years, we expect channel business to comprise a significant portion of our revenue. To this end, we have invested considerable resources in nurturing channel opportunities over the last four years.

Direct

Providing our services directly to well-known global brands achieves two important goals for Actual Experience. First, it helps to build awareness and knowhow. Second, it demonstrates to potential channel partners the commercial interest and enthusiasm for our unique service offerings.

Consumer

Similarly, it is strategically important to continue to develop our consumer offering, Actual Home. Across the world, governments are increasingly focussed on policies to harness the social and economic benefits of digital inclusion and competitiveness. We are able to show how fit for purpose any national digital infrastructure is and consequently where policy must focus to correct for any market failure.

This parallel investment by Actual Experience in understanding the consumers' experience of digital quality has a positive impact on business opportunities and will ultimately offer Actual Experience an unparalleled view of digital quality globally.

The continuous improvement of our technology and the market reach from global channels provides Actual Experience with compelling market potential. We believe the Group is well placed to establish long-term leadership in the business-critical market for the management of digital quality.

 

Customer highlights

 

Top 100 global brand

In May 2015, we were delighted to sign a significant three year contract with a major global organisation. Actual Experience will continuously analyse the organisation's global digital supply chains to ensure that the quality of products delivered to end customers is always visible to business leaders and that their customers' digital experience can be improved.

Verizon Enterprise Solutions

We announced in September 2015 the signing of a three-year contract to supply services to Verizon Enterprise Solutions, the division of Verizon that delivers communication services to businesses and government. Actual Experience now forms part of Verizon's enhanced managed service reporting capabilities, and is being actively promoted by Verizon to their customers worldwide. The service was soft launched in December 2015 and represents the largest potential roll-out of the Group's analytics service to date. We have begun to see Verizon account teams request information about the service for their own customers and expect this to have a significant positive impact on revenues in the years ahead.

Ofcom

We are pleased to have made positive, early progress with Ofcom, where our crowd-sourced data, enabled by the Actual Home project, has been used to analyse the digital economy of Britain. The result of this early work was the publication of Ofcom's 'State of the Nation' report which highlighted our key findings, namely that digital quality is not solely dependent on speed but is affected by a number of additional factors that occur across the UK's national digital supply chains. This successful project confirms that our digital quality analytics can be leveraged equally by governments and businesses.

Fundraise and expansion of operations

We were delighted to successfully complete a placing in June 2015, raising gross proceeds of £15.2 million. The funds were raised for investing across the business as well as strengthening our balance sheet and funding the Group's working capital requirements for the foreseeable future.

Expansion of our sales team and channel support

The funds raised have enabled us to grow client-facing teams in the UK and US, including channel development and support.

Investment in our technology

We have been able to significantly increase the size and skill base of our technology development team. The technical capabilities and features demanded by our target market are rapidly evolving, in particular with regard to trends in corporate adoption of mobile computing platforms. This year we have rolled-out an update to our AaaS business offering. It simplifies use and puts digital quality into the pockets of business leaders on mobile phones.  Alongside increasing channel engagement, we are increasing our focus on data- centre scaling and security matters.

Strengthening our operational team

We were delighted to announce in early October 2015 the appointment of Robin Young, previously a Non-executive Director of the Company, as Chief Operations Officer. Robin stepped into this new role in response to the continuing growth of Actual Experience and the need to build a global operation to support its international customer base.

Robin has extensive CIO, COO, technology and operations experience, previously holding positions at blue- chip public companies, including Mitchells & Butlers, GlaxoSmithKline, Proctor & Gamble and Ford Motor Company.

Investment in brand and marketing

Our brand is being refreshed to more accurately reflect our commercial focus, to build on what we have learned, to differentiate our service and underline its relevance. We are creating the category 'digital experience quality' for our brand to occupy. Our offering has been honed and modernised, and the customer journey refined. We expect this work to support the creation of direct demand both to us and to our channel customers.

Outlook

We have made significant progress across key aspects of our business this year. Actual Experience's market opportunity is vast and growing and we have put in place many of the building blocks needed to capitalise on this potential. In the current financial year we will continue to invest in people and technology, develop further sales opportunities, both channel and direct, and also expect to see further significant revenue contribution from our existing customers.

David Page
Chief Executive Officer

 

 

 

 

Chief Financial Officer's Review

 

 

Trading results

Revenue recognised in the year was £700,449 (2014: £567,469) arising from the supply of analytical services and associated consultancy activities to customers.

Administrative expenses comprising R&D, administration and sales costs totalled £2,617,679, an increase of £1,154,420 compared to the year ended 30 September 2014, after excluding 2014 AIM flotation expenses. This increase reflects the continued investment made by the Group in technology development and customer-facing teams. Personnel costs continue to be the largest expense and represent approximately 60% of the Group's cost base

The tax credits recognised in the current and previous financial year primarily arose from the receipt of R&D tax credits.

Losses after tax for the year ended 30 September 2015 totalled £2,225,455 (2014: loss of £1,303,931). These losses are primarily generated by employee costs and related expenses. The loss for 2014 included AIM flotation expenses of £450,488.

The loss per share for the year was 7.12p (2014: loss of 4.74p). Earnings per share have been impacted by the increases in operating costs and the issue of new shares during the year.

Statement of financial position

Actual Experience is investing in the growth of its operations to address what it believes to be a significant commercial opportunity and its cash flow from operations was therefore negative during the year ended 30 September 2015, as expected. The Group's costs are mostly operating related, with very little investment required in capital infrastructure. Cash used by operating activities was £1,973,356 for the year, compared to £1,306,007 for the year ended 30 September 2014. This operating cash requirement was substantially funded by cash reserves augmented by the net proceeds arising from the issue of share capital amounting to £14,656,147 in June 2015. The Group ended the year with cash and cash equivalent assets totalling £15,275,222 (2014: £2,942,805).

The Directors believe that the software development capitalisation criteria in IAS38 have been met and accordingly development costs, net of amortisation charges, of £366,386 have been capitalised as at 30 September 2015 (2014: £186,354).

 Key performance indicators

As the Group is in the process of development and commercialisation of its services, the Directors consider the key quantitative performance indicators to be sales revenues of £700,449 (2014: £567,469) and the level of cash and cash equivalents held in the business of £15,275,222 (2014: £2,942,805). The Board performs regular reviews of actual results against budget, and management monitors cash balances on a monthly basis to ensure that the business has sufficient resources to enact its current strategy. Certain non-financial measures, such as the number of deployed Digital Users, are monitored on a monthly basis. The Board will continue to review the KPIs used to assess the business as it grows.

On behalf of the Board.
Steve Bennetts
Chief Financial Officer

Consolidated Income Statement and Other Comprehensive Income
for the year ended 30 September 2015 (unaudited)

	Note	2015 £	2014 £
REVENUE from continuing operations		700,449	567,469
Cost of sales		(507,183)	(249,231)
GROSS PROFIT		193,266	318,238
Administrative expenses	2	(2,617,679)	(1,913,747)
Other operating income		-	5,986
Adjusted operating loss		(2,424,413)	(1,139,035)
AIM flotation expenses		-	(450,488)
OPERATING LOSS from continuing operations		(2,424,413)	(1,589,523)
Finance income		12,977	12,067
Fair value loss on financial instruments		-	(4,127)
LOSS BEFORE TAX		(2,411,436)	(1,581,583)
Tax	3	185,981	277,652
LOSS FOR THE YEAR		(2,225,455)	(1,303,931)
Other comprehensive expense:
Items that may be reclassified to profit or loss:
Foreign currency difference on translation of overseas operations		(4,684)	(786)
TOTAL COMPREHENSIVE LOSS FOR THE YEAR		(2,230,139)	(1,304,717)
LOSS PER ORDINARY SHARE
Basic and diluted on loss from continuing operations	4	(7.12)p	(4.74)p

Consolidated Statement of Changes in Equity
for the year ended 30 September 2015 (unaudited)

	Notes	Share capital £	Share premium £	(Accumulated losses)/ retained earnings £	Total equity £
At 1 October 2013		3	1,403,790	(1,688,703)	(284,910)
Loss for the year		-	-	(1,303,931)	(1,303,931)
Other comprehensive expense for the year		-	-	(786)	(786)
Total comprehensive loss for the year		-	-	(1,304,717)	(1,304,717)
Issue of shares		857	4,720,480	-	4,721,337
Bonus share issue for capital reorganisation		56,828	(56,828)	-	-
Cancellation of share premium account		-	(5,933,096)	5,933,096	-
Share-based payment expense		-	-	34,588	34,588
At 30 September 2014		57,688	134,346	2,974,264	3,166,298
Loss for the year		-	-	(2,225,455)	(2,225,455)
Other comprehensive expense for the year		-	-	(4,684)	(4,684)
Total comprehensive loss for the year		-	-	(2,230,139)	(2,230,139)
Issue of shares		16,339	15,231,024	-	15,247,363
Cost of share issues		-	(591,216)	-	(591,216)
Share-based payment expense		-	-	130,730	130,730
At 30 September 2015		74,027	14,774,154	874,855	15,723,036

Consolidated Statement of Financial Position
as at 30 September 2015 (unaudited)

	Notes	2015 £	2014 £
ASSETS
Non-current assets
Property, plant and equipment		44,671	16,412
Intangible assets		366,386	186,354
TOTAL NON-CURRENT ASSETS		411,057	202,766
Current assets
Trade and other receivables		286,397	135,777
Income tax receivable	3	192,000	159,945
Cash and cash equivalents	5	15,275,222	2,942,805
TOTAL CURRENT ASSETS		15,753,619	3,238,527
TOTAL ASSETS		16,164,676	3,441,293
LIABILITIES
Non-current liabilities
Deferred tax	3	(8,858)	(3,373)
TOTAL NON-CURRENT LIABILITIES		(8,858)	(3,373)
Current liabilities
Trade and other payables		(432,782)	(271,622)
TOTAL CURRENT LIABILITIES		(432,782)	(271,622)
TOTAL LIABILITIES		(441,640)	(274,995)
NET ASSETS		15,723,036	3,166,298
EQUITY
Share capital		74,027	57,688
Share premium		14,774,154	134,346
Retained earnings		874,855	2,974,264
TOTAL EQUITY		15,723,036	3,166,298

Consolidated Statement of Cash Flows
for the year ended 30 September 2015 (unaudited)

	Note	2015 £	2014 £
Cash flows from operating activities
Loss before tax		(2,411,436)	(1,581,583)
Adjustment for non-cash items:
Depreciation of property, plant and equipment		13,747	7,738
Amortisation of intangible assets		141,313	39,771
Share-based payment charge		130,730	34,588
Finance income		(12,977)	(12,067)
Fair value loss on financial instruments		-	4,127
Operating cash outflow before changes in working capital		(2,138,623)	(1,507,426)
Movement in trade and other receivables		(149,423)	(53,630)
Movement in trade and other payables		155,280	81,813
Cash flows used in operations		(2,132,766)	(1,479,243)
Tax received		159,410	119,236
Net cash flows used in operating activities		(1,973,356)	(1,360,007)
Cash flows from investing activities
Development of intangible assets		(321,345)	(226,125)
Purchases of property, plant and equipment		(42,006)	(15,020)
Finance income		12,977	12,067
Net cash outflow from investing activities		(350,374)	(229,078)
Cash flows from financing activities
Repayment of borrowings		-	(2,202)
Proceeds from issue of share capital, net of costs		14,656,147	4,207,558
Net cash inflow from financing activities		14,656,147	4,205,356
Increase in cash and cash equivalents		12,332,417	2,616,271
Cash and cash equivalents at start of year		2,942,805	326,534
Cash and cash equivalents at end of year	5	15,275,222	2,942,805

Notes to the Financial Information
for the year ended 30 September 2015

 

 

 

1     BASIS OF PREPARATION

Actual Experience plc is a public limited company domiciled in the United Kingdom and incorporated in England. The Preliminary Announcement does not constitute statutory financial statements within the meaning of section 434 of the Companies Act 2006 and has not been audited.

The accounts for the year to 30 September 2014 have been delivered to the Registrar of Companies. The accounts for the year ended 30 September 2015 have not yet been delivered to the Registrar of Companies.

The Company's registered office is The Tramshed, Beehive Yard, Walcot Street, Bath, BA1 5BB.

The unaudited Preliminary Announcement has been prepared under the historical cost convention and in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union and interpretations in issue at 30 September 2015.

The accounting policies adopted are consistent with those of the annual financial statements for the year ended 30 September 2014, as described in those financial statements. New standards or interpretations which came into effect for the current reporting period did not have a material impact on the net assets or results of the Group

Going Concern

At 30 September 2015, the Group had a cash and cash equivalents position of £15,275,222 with no bank debt. The Directors have prepared detailed monthly projections of future cash flows for the remainder of the financial year to September 2016 and the subsequent financial year, 2017. The base case forecast includes expected revenue growth, together with further investment in the cost base, leading to the commencement of positive monthly cash flows during the latter part of financial year 2017.

After due consideration, the Directors have concluded that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

 

 

2      LOSS FROM OPERATIONS

		2015 £	2014 £
Loss from operations is stated after charging/(crediting) to administrative expenses:
Depreciation on owned property, plant and equipment		13,747	7,738
Amortisation of intangible assets		141,313	39,771
Operating lease rentals - land and buildings		80,507	50,000
Employee costs		1,847,726	1,156,883
Foreign exchange (gains)/losses		(448)	1,297

3     TAXATION
Tax on loss on ordinary activities

	2015 £	2014 £
Current tax:
UK Corporation tax on losses of the year	(192,000)	(279,181)
Overseas taxes	534	-
Deferred tax:
Origination and reversal of timing differences	5,485	1,529
Total tax credit	(185,981)	(277,652)

Factors affecting the current tax credits
The tax assessed for the year varies from the standard UK company rate of corporation tax as explained below:

	2015 £	2014 £
Loss on ordinary activities before tax	(2,411,436)	(1,581,583)
Tax at the UK corporate tax of 20.50% (2014: 22.00%)	(494,344)	(347,948)
Effects of:
Expenses not deductible for tax purposes	59,683	122,747
Unrecognised deferred tax asset on losses	387,603	155,774
Research and development tax credits received in respect of the prior year	-	(119,236)
Research and development enhancement in respect of the current year	(138,693)	(88,916)
Change in rate of tax used to calculate deferred tax liability	(230)	(73)
Tax credit for the year	(185,981)	(277,652)

The Group has tax losses carried forward of £3,820,000 (2014: £1,923,171).

The standard rate of corporation tax in the UK changed from 21% to 20% from 1 April 2015. Accordingly the Group's losses for the accounting period are based on an effective rate of 20.5%.

During the year the Group has incurred qualifying expenditure on research and development projects which has given rise to tax credits due from HM Revenue and Customs to the Group of £192,000 (2014: £159,945).

 

At 30 September 2015, the Group had unrecognised deferred tax assets totalling £732,776 (2014: £403,866) which relate to losses. The Group has not recognised this asset in the Consolidated Statement of Financial Position due to the uncertainty in the timing when it is probable that future taxable profit will be available against which the unused tax losses and unused tax credits can be utilised.

 

4     LOSS PER SHARE

Basic loss per share is calculated by dividing the loss attributable to the owners of the parent by the weighted average number of ordinary shares in issue during the year. Diluted loss per share is calculated by adjusting the weighted average number of ordinary shares in issue during the year to assume conversion of all dilutive potential ordinary shares.

The Company has one class of potentially dilutive ordinary shares, being those share options granted to employees where the exercise price is less than the average market price of the Company's ordinary shares during the year. However, due to losses incurred in both the current and previous financial year there is no dilutive effect from the potential exercise of these dilutive shares

	2015 £	2014 £
Total loss attributable to the equity holders of the parent	(2,225,455)	(1,303,931)
	No.	No.
Weighted average number of ordinary shares in issue during the year	31,239,006	27,525,131
Loss per share
Basic and diluted on loss for the year	(7.12)p	(4.74)p

Adjusted earnings per share has been calculated so as to exclude the effect of non-operating exceptional costs including related tax charges and credits.

Adjusted earnings used in the calculation of basic and diluted earnings per share reconciles to basic earnings as follows:

Basic earnings	(2,225,455)	(1,303,931)
Non-operating exceptional costs	-	450,488
Adjusted earnings	(2,225,455)	(853,443)
Adjusted loss per share
Basic and diluted on adjusted loss for the year	(7.12)p	(3.10)p

The weighted average number of shares in issue throughout the year is as follows:

	2015	2014
Issued ordinary shares at the beginning of the year	28,844,225	26,356
Adjustment to reflect capital reorganisation	-	19,740,644
Issued ordinary shares at the beginning of the year - adjusted	28,844,225	19,767,000
Effect of shares issued in November 2013	-	7,487,901
Effect of shares issued in February 2014	-	270,230
Effect of shares issued in June 2015	2,394,781	-
Weighted average number of shares at the end of the year	31,239,006	27,525,131

 

 

 

5     CASH AND CASH EQUIVALENTS

Bank credit rating:	2015 £	2014 £
A+	5,001,822	-
A	-	2,942,805
A2	47,751	-
BBB+	10,225,649	-
Cash and cash equivalents	15,275,222	2,942,805

The above has been analysed by the Fitch rating system and gives an analysis of the credit rating of the financial institutions where cash balances are held.

All of the Group's cash and cash equivalents at 30 September 2015 are held in instant access current accounts or short-term deposit accounts. Balances are denominated in UK sterling (£) and US dollars ($) as follows:

	2015 £	2014 £
Denominated in pound sterling	15,157,211	2,924,344
Denominated in US dollars	118,011	18,461
Cash and cash equivalents	15,275,222	2,942,805

The Directors consider that the carrying value of cash and cash equivalents approximates to their fair value. For details of credit risk management policies, refer to note 3 of the annual report and accounts.

6      REPORT AND ACCOUNTS

The Company's Report and Accounts for the year ended 30 September 2015, together with a notice convening the Company's annual general meeting, will be posted to shareholders in due course.

 

END

 

 

FR BRGDBXSBBGLD