Maiden Interim Results

RNS Number : 2150N

Glantus Holdings PLC

29 September 2021

 

Glantus Holdings Plc

Maiden Interim Report and accounts

For the six months ended 30 June 2021

 

Glantus Holdings Plc ("Glantus" or "Company" or "Group") is pleased to announce its maiden interim results for the six months to 30 June 2021.

Glantus is a growing player in the global Accounts Payable Automation (APA) market providing automation and recovery solutions through its inhouse developed software products.  Its main markets are EMEA and US. 

Highlights 

Performance in line with Board expectations for the period

· Financial Highlights

o  Adjusted EBITDA of €1.2m up by 100% (H1 2020: €0.6m)

o  Revenue of €4.3m up by 5%   (H1 2020 €4.1m)

o  Gross Profit of €3.4m up by 10%  (H1 2020 €3.1m)

· Operational Highlights

o  Successful IPO on AIM in May 2021 raising £10m for the Company.

o  Continued enhancement of product offerings.

o  COVID - business continues to operate remotely with no adverse effect on operational or service delivery to customers.

· Post period end highlights

o  Acquisition of Technology Insight Corporation, a Boston based software solution provider for accounts payable (AP) within large, often global, enterprises.  With annual recurring subscription revenue of $2.5m and recurring transactional revenues of $1.4m in the US market, the acquisition enhances Glantus' capabilities in this important market.

· Outlook

o  Glantus expects continued growth through 2021 from both existing clients and addition of new clients.

o  Strong go to market strategy based on enhanced product offering.

o  Partnership strategy will deliver results in 2022.

o  Continue to grow our acquisition pipeline.

Maurice Healy, CEO, commented:

"2021 has been a very exciting period for Glantus with admission to AIM in May followed by the acquisition of Technology Insight Corporation in July. 

Glantus operates in an expanding AP market.  Having developed a unique range of products and services, with a proven need, we are uniquely positioned to become the dominant player.  The combination of our organic growth strategies and strategic acquisitions heralds a strong future for our Company"

Company Contact Information

Glantus Holdings Plc      [phone]

Maurice Healy, Chief Executive Officer                                                                                                                 [e-mail]

Grainne McKeown, Chief Financial Officer 

Arden Partners Plc                                                                                                                                               [phone]

Ruairi McGirr / Richard Johnson (Corporate)

Simon Johnson  (Broking)     

Flagstaff Strategic and Investor Communications

Tim Thompson                                                                                                                                                      + 44 7710 718 649

Mark Edwards

Fergus Mellon

[e-mail]

Share listing

Listed on AIM 

TIDM  GLAN 

ISIN  IE00BNG2V304

A copy of these interim financial statements is available on the investor section of the Company's website at  www.glantus.com

Interim results presentation

Maurice Healy CEO and Grainne McKeown CFO will provide a live presentation relating to Glantus 2021 Interim Results via the Investor Meet Company platform on 5 October 2021 at 4pm BST.

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9am the day before the meeting or at any time during the live presentation.

Investors can sign up to Investor Meet Company for free and add to meet Glantus via: 

https://www.investormeetcompany.com/glantus-holdings-plc/register-investor

 

Chief Executive Officers Review

Overview

We are delighted to report our first set of interim results since our admission to AIM in May 2021.

Glantus has delivered a strong performance in line with expectations over the six months to 30 June 2021 ("H1-21") and the results reflect the continued focus by management and strategic decisions made to ensure revenue growth and importantly EBITDA growth.  These results are particularly impressive given that during the same period we had a successful admission to AIM on May 11^th which raised £10m for the Company providing funds to invest in organic and acquisitive growth.

In addition, Glantus appointed to the Board 3 Non-Executive directors, Barry Townsley (Chairman), Tom Price and Diane Gray-Smith, who bring a wealth of knowledge and experience and they will assist in the strategic direction of Glantus over the coming years. 

Glantus has continued to hit major milestones in its ambitious growth plan throughout the first half of the year, delivering on the expectations set during its successful IPO process.

Glantus is a growing player in the global Accounts Payable Automation (APA) market. APA is estimated to be worth $2.5 Billion in 2021 and is expected to reach $4.47 Billion by 2026, growing at a CAGR of 12.3%[1].

Demand continues to grow for APA products and services such as Purchase-to-Payment automation, statement reconciliation, credit-recovery automation, data optimisation, improved security and fraud detection and real time supplier analysis. Glantus has developed technologies to meet the growing demand for digitisation, fraud/risk management and real-time, error-free AP processes. This combination of software innovation and rising global demand will drive increasing opportunities for Glantus in this lucrative market. 

Events since the IPO and outlook

Since the IPO, Glantus has completed the acquisition of Technology Insights Corporation (TIC). This is an earnings-accretive acquisition, delivering immediate earnings growth and offering a variety of synergistic opportunities.

TIC is a software solution provider for accounts payable within large global enterprises. It has been trading for over 20 years and has its own IP. TIC has recurring revenues of $2.5m and transactional revenues of $1.4m. It is headquartered in Boston MA and provides its solutions across the US. TIC's know-how around AP duplicate payments and analytics is of considerable benefit to Glantus.  The expansion of a US technical resource team enhances the Glantus Technical Support, pre-sales capabilities, and implementation processes in the important US market.

TIC Customer Base

· 90+ Consolidated enterprise customer base

· 35 Global customers with the same profile as Glantus

· $500m average spend

TIC Revenue Type

· $3.9m ARR

o  $2.5m Subscription

o  $1.4m Transactional

· Glantus, whose revenues are in inverse proportion to TIC's, bringing a balance to the combined group's subscription and transactional revenues

TWO-WAY UPSELLING OPPORTUNITIES

TIC Acquisition brings exciting opportunities to accelerate our organic growth within both existing customer bases.

Technology Insights

· Clients have long-required more capability and a more integrated solution including statement reconciliation and contract compliance

Glantus

· Recognised need for more advanced AP analytics based on customer feedback

Within the Glantus customer base, we have long recognised the need for more advanced AP analytics based on customer feedback. The TIC experience and know-how over 20 years enhances our offering in this space and management expects strong demand from the existing customer base in deploying the advanced analytics and duplicate payment capture capabilities of the TIC product.

TIC clients have long required more capability and a more integrated solution, including products available from the Glantus product offering such as statement reconciliation, data optimisation and AP automation.

The opportunity and the challenge for management over the next 18 months is to maximise sales into the combined customer base.

New Business

Attracting new customers post the acquisition begins with deploying a new go-to-market strategy for the combined offering. Glantus is changing the approach from leading with transactional revenues to leading with subscription revenues. This will involve a re-branding of our combined IP into a new product portfolio consisting of :

Ø Dupli Shark

Ø Duplicate payment detection and recovery.  A.I. fuelled payment error discovery is limitless, continuous, and spans across all your systems.  Add control to spend, vendor and expense analysis

Ø Statement Shark

Ø Reconciling vendor statements to AP transactional data to uncover overpayments, open credits, missing invoices and discrepancies.  Spend your time solving, not matching

Ø Docu Shark

Ø Automated workflows to optimize P2P matching, approval and posting processes driving efficiency and unlocking insights.  Start with data, instead of data entry, to amplify process automation

Ø Recovery Shark

Ø Identify and expediate the recovery of unclaimed credits from vendor statements.  Powers the detection and collection of credits with AI to put cash, not keying, into the hands of the AP team

The first three products are software, subscription and/or licence sales. Recovery Shark is the current transactional service which we will continue to offer. The fulfilment of this offering is automated through our own software products and continues the trend of reducing the cost of delivering this service.

Management believes that while leading with the subscription sale products will in the short term reduce the recognised quarterly revenues, it will increase long-term recurring revenues as well as the valuation of the business.

Integration update

Since the acquisition in July, and to facilitate the integration of TIC, many changes have been made to the structure of the organisation.

Andrea Wilkinson has been appointed SVP Americas and Selman Gonzalez has been appointed SVP Sales Americas. Together, Andrea and Selman have restructured all departments in the US.

The sales structure has now been redrafted and is geographically focused with sales, account management and lead generation being done in three US regions; East, Central and West.

Operations have been fully integrated with the implementation of software solutions and the delivery of transactional revenues being completed by one team, which is now headed up by the newly appointed head of operations US, Herpreet Kaloti. 

There have been one-off costs to this integration predominantly from redundancies which will be incurred in H2-21. 

In EMEA, the TIC team has integrated well and enhanced our sales capabilities in the region. Operationally we have successfully re-trained some staff on the implementation of the new products.

Partnerships

The Glantus Partner Recruitment campaign continues to be developed on the intelligence gathered following key market sector research and partner type evaluation undertaken during H1-21. 

Over the past quarter Glantus has commenced targeted campaigns and created an active pipeline of target partner companies. Completed partner agreements during H1-21 include Iris Software Group, Triangular World and DuCharme McMillen & Assoc (DMA).  Further partner agreements in H2-21 include Trintech (Adra) and VAT IT Reclaim.

Glantus is currently creating a specific partnership framework around our latest software products (following the acquisition of TIC) to further benefit the partnership program. Positive interest and feedback from both existing and new prospective partners in this program are enabling Glantus to focus channel sales on our latest AP recovery, automation and analytics data products.

Acquisitions

Glantus plans to continue an aggressive but thoughtful acquisition strategy and is identifying specific target firms that may be under-recognized in the industry but offer high value in AP.

Management believes the most attractive assets for Glantus are likely to have the following criteria in common:

· Technology enabled AP services.

· Visibility of revenue retention and net recurring revenue.

· Niche solutions which are known in specific industries with narrow and high value economic buyers. These solutions offer an overall halo effect post integration

Following the successful acquisition and integration of TIC, management continues to actively engage with potential targets which fit our criteria above (both in EMEA and the US) in line with this strategy.

COVID

The Company has demonstrated a clear ability to run the business remotely from a technical and operational standpoint.  In 2020 we experienced some slowdown in closing new business sales due to general global uncertainty.  While there was some exposure to the travel and hospitality sectors, the Board's view is that the Groups' broad customer base is well capitalised to withstand the medium term impacts of reduction in revenue from any one sector.  

The Company continues to monitor the government guidelines in all countries it operates in and is taking all safety precautions necessary to ensure the continued wellbeing of its customers and employees. All employees continue to work remotely and a return to workplace plan in line with country guidelines is being implemented.  

Glantus Risk Management

The Risk Committee reporting to the Board of Directors has, as its sole and exclusive function, responsibility for the oversight and practices of the Company's global operations and oversight of the operation of the Company's global risk management framework. 

The Risk Committee continually reviews and evaluates risks within the business and assesses our requirements to manage and mitigate the risks that could impact the business. Very good engagement in governance and risk management is applied throughout the business. The approach to risk is based on the Glantus standards and controls underpinned by ISO standards 9001, 27001, 27701. Glantus also complies with the QCA Code of Corporate Governance. All these standards have controls, and the common denominator is to identify, review and mitigate risk.  As the potential for data breaches is becoming more prominent on a global scale, there is a strong focus on transfer of data, data privacy, IT infrastructure and staff training.

External independent audit of the Glantus integrated management system demonstrates the capability to meet intended quality, security and privacy outcomes with very strong engagement.

Competence management for the Data Protection Officer qualifications shows Glantus' commitment to privacy management in satisfying the needs for providing internal expertise in privacy management.

The security and privacy are well established into operational processes, with the completion of multiple, Data Privacy Impact Assessment's demonstrating prompt action in reviewing privacy management for new or proposed changes of processing.

Audit of IT management shows very good progress in the planning and execution of the IT strategy and the improvement of the work environment and supporting infrastructure, including security and resilience of systems and services provided to internal and external users.

Financial Review

We are pleased to report strong growth in all key financial metrics:

Revenues

Total revenue increased by 5% to €4.3m (H1-20: €4.1m) with growth in both recurring and non-recurring revenue streams.

		Six months to 30 June	Six months to 30 June	Year ended 31 December
		2021	2020	2020
		€ '000	€ '000	€ '000
Recurring Revenue		3,776	3,668	7,532
Non-recurring revenue		486	385	639
Reported revenue		4,262	4,053	8,171

Recurring revenue is the revenue that annually repeats either under contractual subscription or predicable transactional billing. Subscription revenue of €2.5m is continuing to grow demonstrating a sustainable growth trend underpinning future revenue forecasts. Total subscription contracted value is €4.9m with average contract length of 22months.  Subscription churn remains very low at 4%. 

Gross Profit

Gross profit increased by 10% to €3.4m (H1-20: €3.1m) which reflects the full benefit of the significant actions taken in the latter half of 2020 to implement operational efficiencies in the acquired business of JPD Financial and resulting direct labour cost reductions.

Adjusted EBITDA

Management has presented the performance measure 'adjusted EBITDA' as it monitors this performance measure at a consolidated level, and the Board considers that this metric provides the best measure of assessing underlying trading performances.

Adjusted EBITDA is calculated by adjusting profit before taxation to exclude impact of net finance costs, depreciation, amortisation, share based payment charges and exceptional items.

		Six months to 30 June	Six months to 30 June	Year ended 31 December
		2021	2020	2020
		€ '000	€ '000	€ '000
Operating (Loss)/profit		(1,111)	(310)	473
Amortisation		318	213	482
Depreciation		100	85	237
Exceptional Items		1,883	570	794
Share Based payments		-	62	91
Other Income		-	(7)	(282)
Adjusted EBITDA		1,190	613	1,795
Adjusted EBITDA %		27.9%	15.1%	22.0%

Adjusted EBITDA increased by 100% to €1.2m (H1-20: €0.6m) reflecting growth in revenue and significant operational cost efficiencies both in automation of processes and general overhead efficiencies implemented in 2020.

The exceptional items include acquisition costs, post-acquisition restructuring costs and IPO admission costs (see Note 5).

Total costs for AIM admission totalled €1.8m - €0.9m at P&L exceptional cost and €0.9m adjusted to Share premium in line with IFRS.

Earnings per Share

In preparation for admission to AIM a capital restructuring was implemented in April 2021 with a 25 million bonus share issue.  Weighted average of ordinary shares has been adjusted to reflect the bonus share issue (see Note 7)

		Six months to 30 June	Six months to 30 June	Year ended 31 December
		2021	2020	2020
Adjusted Earnings		1,190	613	1,795
		Number	Number	Number
		'000	'000	'000
Weighted average number of ordinary shares		29,038	26,275	26,275
		Cent	Cent	Cent
Adjusted EPS		0.04	0.02	0.07

Outlook

With an expanding customer base, a growing acquisition pipeline and market-ready products, management views the outlook for Glantus with increased optimism and excitement.

Maurice Healy

Chief Executive Officer

September 29 2021
 

Financial Report

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
		Six months to 30 June		Six months to 30 June		Year ended 31 December
		2021		2020		2020
		Unaudited		Unaudited		Audited
	Note	€ '000		€ '000		€ '000
Revenue	3	4,262		4,053		8,171
Cost of sales		(850)		(962)		(1,586)
Gross profit		3,412		3,091		6,585
Administrative expenses		(2,222)		(2,478)		(4,790)
Exceptional Items	5	(1,883)		(570)		(794)
Share Based Payments	6	-		(62)		(91)
Amortisation		(318)		(213)		(482)
Depreciation		(100)		(85)		(237)
Other income		-		7		282
Operating (loss)/profit		(1,111)		(310)		473
Finance costs		(345)		(359)		(674)
Loss on ordinary activities before taxation		(1,456)		(669)		(201)
Income tax		7		(47)		(111)
Loss for the financial period		(1,449)		(715)		(312)
Other comprehensive loss for the period		-		(5)		(5)
Total comprehensive loss for the period attributable to the owners of the group		(1,449)		(721)		(317)
Earnings/(loss) per share - basic and diluted (cent)	7	(0.05)		(0.03)		(0.01)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
		30 June	30 June	31 December
		2021	2020	2020
		Unaudited	Unaudited	Audited
	Note	€ '000	€ '000	€ '000
ASSETS
NON-CURRENT ASSETS
Intangible assets		7,354	6,975	7,251
Property, plant and equipment		251	449	355
		7,605	7,424	7,606
CURRENT ASSETS
Trade and other receivables		4,313	2,686	2,909
Cash and cash equivalents		8,764	1,056	1,891
		13,077	3,742	4,800
TOTAL ASSETS		20,682	11,166	12,406
EQUITY AND LIABILITIES
EQUITY
Called up share capital presented as equity	8	36	1	1
Share premium		10,629	1,000	1,000
Reorganisation reserve		656	656	656
Foreign exchange reserve		(103)	(170)	(170)
Share option reserve		91	62	91
Retained earnings		(1,930)	(1,885)	(1,481)
TOTAL EQUITY		9,379	(336)	97
CURRENT LIABILITIES
Trade and other payables		5,497	7,263	7,726
NON-CURRENT LIABILITIES
Long term liabilities		5,806	4,239	4,583
TOTAL LIABILITIES		11,303	11,502	12,309
TOTAL LIABILITIES AND EQUITY		20,682	11,166	12,406

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
	Called up share capital presented as equity	Share Premium account	Reorganisation Reserve	Foreign exchange reserves arising on translation	Share Option reserve	Retained earnings	Total
Note	€ '000	€ '000	€ '000	€ '000	€ '000	€ '000	€ '000
At 1 January 2020	1	1,000	656	(165)		(1,169)	323
Share options granted  6					62		62
Total comprehensive loss for the period				(5)		(716)	(721)
At 30 June 2020	1	1,000	656	(170)	62	(1,885)	(336)
At 1 July 2020	1	1,000	656	(170)	62	(1,885)	(336)
Share options granted  6					29		29
Total comprehensive loss for the period				-		404	404
At 31 December 2020	1	1,000	656	(170)	91	(1,481)	97
At 1 January 2021	1	1,000	656	(170)	91	(1,481)	97
Share options granted							0
Reorganisation for AIM Listing  8	25	(1,000)				1,000	25
Issue of shares	10	10,629					10,639
Total comprehensive loss for the period				67		(1,449)	(1,382)
At 30 June 2021	36	10,629	656	(102)	91	(1,930)	9,380

CONSOLIDATED STATEMENT OF CASHFLOWS
		Six months to 30 June	Six months to 30 June	Year ended 31 December
		2021	2020	2020
		Unaudited	Unaudited	Audited
		€ '000	€ '000	€ '000
Cash flows from operating activities
Group loss after tax		(1,449)	(716)	(311)
Adjusted for:
Interest payable		345	359	674
R&D tax credit income		-	-	(82)
Income tax expense		(7)	47	111
Depreciation		100	85	237
Amortisation		318	213	482
Movement in trade and other receivables		(870)	(678)	471
Movement in trade and other payables		1,545	1,643	310
Loss on disposal of tangible assets		-	-	1
Net tax received		-	-	60
R&D refund received		-	-	26
Share-based payment expense		-	62	91
Effects of movement in exchange rates		67	1	(6)
Net cash flows generated from / (used in) operating activities		49	1,015	2,064
Cash flows from investing activities
Purchase of property, plant and equipment		(65)	(308)	(70)
Payment for acquisition of subsidiaries, net of cash acquired		-	(1,907)	(1,907)
Payment of deferred consideration		(1,185)	(49)	(249)
Payment for software development asset		(422)	(167)	(732)
Net cash (used in) investing activities		(1,672)	(2,432)	(2,959)
Cash flow from financing activities
Loans received		60	-	628
Interest payable		(345)	(359)	(674)
IPO - Exceptional Costs		(1,883)	-	-
Equity (Proceeds from issue of shares)		11,601	-	-
Equity (IPO costs against Share premium)		(937)	-	-
Net cash generated / (used in) from financing activities		8,496	(359)	(45)
Net increase/(decrease) in cash and cash equivalents		6,873	(1,775)	(941)
Cash and cash equivalents at the beginning of the period		1,891	2,831	2,831
Cash and cash equivalents at the end of the period		8,764	1,056	1,891

 

Notes to the unaudited interim statements

1.  General Information

Glantus Holdings Plc ("the Company") is a public limited company incorporated in the Republic of Ireland. The registered office is Estuary House, Block P7, Eastpoint Business Park, Dublin 3.  The company was admitted to AIM on 11th May 2021.

The principal activity of the Group is the specialist provision of next generation and world class software platforms focused on manufacturing, distribution and related industries.

2.  Accounting policies

Basis of preparation

These interim financial statements are non-statutory general-purpose financial statements for the six-month period ended 30 June 2021. These financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting, as adopted by the European Union, and the Companies Act 2014. They do not include all of the information required in annual financial statements in accordance with IFRS as adopted by the European Union. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual consolidated financial information for the year ended 31 December 2020 included in the Admission Document.

The interim financial statements for the six-month period ended 30 June 2021 should be read in conjunction with the consolidated results for the year ended 31 December 2020 included in the Admission Document, and any public announcements made by the company during the interim reporting period.

The interim financial statements have been prepared on the historical cost basis. The interim financial statements of the Group are presented in Euro ("€") which is also the functional currency of the Company.

The Group's accounting policies are set out in the Company's Admission Document.

The preparation of the 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 subsequently differ from those estimates. In preparing the interim financial statements, the significant judgements made by management in applying the Group's accounting policies and key sources of estimation uncertainty were the same, in all material respects, as those applied to the consolidated results for the year ended 31 December 2020 included in the Admission Document.

Going concern 

At the time of approving these interim accounts, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis of accounting in preparing the interim financial statements.

The interim financial statements are unaudited and were approved by the Board of Directors on 21/09/21. 

3.  Segmental Reporting

Segmental information is presented in respect of the group's geographical regions and operating segments in accordance with IFRS 8 'Operating Segments'. The Board considers that there is one identifiable business segment being the provision of enterprise software solutions.

Recurring revenue is the revenue that annually repeats either under contractual subscription or predicable transactional billing.

		Six months to 30 June	Six months to 30 June	Year ended 31 December
		2021	2020	2020
		€	€	€
Amount of revenue by class of activity:
Recurring annual subscriptions		1,402	1,149	2,149
Recurring recovery services		2,374	2,519	5,383
Professional services & licences		486	385	639
Reported revenue		4,262	4,053	8,171

The group operates in three principal geographical regions being Republic of Ireland, the United Kingdom and the United States of America. The group also has customers in other countries such as Singapore, Australia, Spain, Switzerland, Canada, Mexico and the Netherlands, which are not material for separate identification.

		Six months to 30 June	Six months to 30 June	Year ended 31 December
		2021	2020	2020
		€ '000	€ '000	€ '000
Amount of revenue by region:
Republic of Ireland		1,510	1,105	2,047
United Kingdom		1,630	1,357	2,611
United States of America		1,122	1,591	3,513
Reported Revenue		4,262	4,053	8,171

4.  Adjusted EBITDA

Management has presented adjusted EBITDA as it monitors this performance measure at a consolidated level, and the Board considers that this metric provides the best measure of assessing underlying trading performance.

Adjusted EBITDA is calculated by adjusting profit or loss before taxation to exclude the impact of net finance costs, depreciation, amortisation, share based payment charges and exceptional items.

The exceptional items include acquisition costs, post-acquisition restructuring and AIM admission costs.

		Six months to 30 June		Six months to 30 June	Year ended 31 December
			2021	2020	2020
		€ '000		€ '000	€ '000
Operating (Loss)/profit		(1,111)		(310)	473
Amortisation		318		213	482
Depreciation		100		85	237
Exceptional Items		1,883		570	794
Share Based payments		-		62	91
Other Income		-		(7)	(282)
Adjusted EBITDA		1,190		613	1,795

5.  Exceptional Items

The exceptional items include IPO costs, acquisition costs and costs incurred in post-acquisition restructuring.

		Six months to 30 June	Six months to 30 June	Year ended 31 December
		2021	2020	2020
		€ '000	€ '000	€ '000
Acquisition costs		-	546	546
Restructuring costs		-	-	745
AIM Admission costs		902	-	-
Sale Fee to Beachpoint Capital on IPO admission		1,000	-	-
Other exceptional (income)/costs		(19)	24	(496)
Total exceptional items		1,883	570	794

Total costs for AIM admission totalled €1.8m - €0.9m at P&L exceptional cost and €0.9m adjusted to Share premium in line with IFRS.

6.  Share based payments

The share based payment charge has been calculated using the Black-Scholes model.

7.  Earnings per share

Basic earnings per share is calculated by dividing the net loss for the period attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.

The weighted average number of ordinary shares has been adjusted to reflect bonus share issue in H1-21.

The basic earnings per share calculation is the same as for the fully diluted earnings per share position.

		Six months to 30 June	Six months to 30 June	Year ended 31 December
		2021	2020	2020
Earnings		€ '000	€ '000	€ '000
(Loss) for the period		(1,449)	(716)	(312)
Taxation		(7)	47	111
Amortisation		318	213	482
Depreciation		100	85	237
Exceptional Items		1,883	570	794
Share Based payments		-	62	91
Other Income		-	(7)	(282)
Finance costs		345	359	674
Adjusted Earnings		1,190	612	1,795
		Number	Number	Number
Weighted average number of ordinary shares		'000	'000	'000
Total shares in issue (weighted)		29,038	26,275	26,275
EPS		Cent	Cent	Cent
Basic and diluted EPS		(0.05)	(0.03)	(0.01)
Adjusted basic and diluted EPS		0.04	0.02	0.07

Adjusted EPS is not a defined performance measure in IFRS.  The Group's definition of adjusted EPS may not be comparable with similarly titled performance measures disclosures by other entities.

 

8.  Share Capital

		Ordinary Shares	Share Capital	Share Premium
		Number @ €0.001 each	€	€
At 1 January 2020, 30 June 2020 and 31 December 2020		1,275,444	1,275	999,791
Bonus share issue pre admission reorganisation		25,000,000	25,000	(25,000)
Reduction in Share Premium				(974,791)
Share Options exercised 11 May 2021		196,078	196	7,574
Shares issued on Admission 11 May 2021		9,803,909	9,804	10,621,915
At 30 June 2021		36,275,431	36,275	10,629,489

In connection with the admission, the Company undertook a number of steps to reorganise its share capital as follows:

1.  On 9 April 2021, the Company had share premium of €999,791.  €25,000 of the share premium was capitalised and applied in paying up in full unissued shares allotted as fully paid bonus shares to the holders of the Ordinary Shares

2.  On 9 April 2021, share premium account was reduced by €974,791 to nil

3.  On 13 April 2021, 300,000 Preference Shares of €1 each held by Enterprise Ireland were paid up and cancelled.

On Admission:

1.  On 11 May 2021, 196,078 ordinary shares were issued on the exercising of share options by Paula Nolan.

2.  On 11 May 2021, 9,803,909 Ordinary shares were issued as part of admission.

3.  Following admission the total ordinary share capital of the Company was 36,275,431 shares of €0.001 each.

9.  Events after the reporting period

The Company acquired the total share capital of Technology Insight Corporation and the assets of Technology Insight Europe on 15 July 2021 for a combined consideration of $9.3m.  Payment terms as follows

  On Completion :  $6.9m cash

  $1.0m ordinary shares

  Dec 2021  :  $0.4m cash

  Jul  2022  :  $1.0m cash

The acquisition was funded by way of €5m debt funding from Beachpoint Capital and balance from cash reserves. 

 

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[1] Source: www.researchandmarkets.com  Global Accounts Payable Automation Market report 2021

 

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