Year End Results

RNS Number : 0957N

Glantus Holdings PLC

30 May 2022

 

Glantus Holdings plc

("Glantus" or the "Company" or the "Group ")

Full Year Results

Successfully delivered on IPO goals and trading in the new financial year in line with the Board's expectations

Glantus, a leading provider of software as a service ("SaaS") solutions delivering automation and analytics to the Accounts Payable ("AP") function is pleased to announce its final results for the twelve months to 31 December 2021 ("FY21").

FY21 Highlights 

· Successful IPO in May 2021 raising net proceeds of €9.8m which has strengthened our balance sheet and increased our profile in the Accounts Payable sector

· $1.6Tn transactions on the proprietary Glantus Platform

· Revenue including other income growth of 27% to €10.7m (FY20: €8.5m) due to strong organic trading performance and acquisitions

· Adjusted EBITDA margin increase to €3.1m / 29% (FY20: €2.1m / 25%) as a result of full effects of acquisition efficiencies and focus on operational costs 

· 2021 subscription churn rate of significantly reduced to 2.9% (FY20: 6.9%) demonstrating the value and dependency customers place on the SaaS solutions

· 430 global customers, an increase of 31%, up from 328 customers in FY20, in over 50 countries

· Accreditations in ISO 27701, ISO 27001 and ISO 9001 across the Group  

· Two successful strategic and earnings enhancing acquisitions in the US and UK

· Glantus continues to accelerate the development of the SaaS platform embracing new technologies and added value solutions to the Accounts Payable product suite

Post year end highlights and outlook

· Partnership with TealBook announced to create a Data Intelligence Ecosystem of Procurement and Accounts Payable

· New appointments to our executive team, Diane Gray-Smith and David Rosenthal reflect our deepening focus on the role of technology, innovation and expanding our services as SaaS solutions to the global Accounts Payable functions

· The Group continues to grow its headcount to support expanding operations and now has 124 staff in 6 countries

· Relaunch of product suite as part of overall brand refresh

· Trading in the new financial year has been in line with the Boards' expectations and the business model and strategy provides a strong platform for significant growth. 

· Looking forward, the Board has the confidence of the continued and sustained demand for the Glantus solutions and the potential for additional products to be integrated onto the Glantus platform.

Financial Highlights

€'000		FY21	FY20	YoY Change %
Revenue inc. other income		10,740	8,453	27%
Adjusted EBITDA		3,103	2,077	49%
Adjusted EBITDA %		29%	25%	16%
Adjusted operating profit		1,676	1,358	23%
Adjusted Profit before tax		709	684	4%
Adjusted basic EPS (cents)		9.36	7.90	18%
Closing cash and cash equivalents		2,353	1,891	24%
Customer Numbers		430	328	31%
Subscription Churn Rate %		2.9%	6.9%	-58%

Maurice Healy, CEO, commented:

"I am delighted to present Glantus' maiden full year results for the year ended 31 December 2021.  It has been an exceptional year for the Group, in which we accomplished the performance goals we committed to at IPO and made successful acquisitions in the US and UK.

Glantus operates in the expanding Accounts Payable market.  Having developed a unique range of products and services, we are poised to become the dominant SaaS player in this sector.  The combination of our strong business fundamentals, cutting edge technology, exceptional leadership team and targeted strategic acquisitions heralds a strong future for our Group".

Company Contact Information

For further Information visit www.glantus.com ,follow on twitter @GlantusLTD or contact:

Glantus Holdings Plc                                                              [phone]

Maurice Healy, Chief Executive Officer 

                                                                      [e-mail]

Grainne McKeown, Chief Financial Officer

Shore Capital                                                                                             [phone]

Nominated Advisor and Broker           

Patrick Castle / John More / Tom Knibbs (Corporate Advisory)

Andrew Beswick (Corporate Broking)

Flagstaff Strategic and Investor Communications

Tim Thompson                                                                                                    [phone]

Mark Edwards

Fergus Mellon

[e-mail]

Share listing

Listed on AIM 

TIDM  GLAN 

ISIN  IE00BNG2V304

A copy of these financial statements is available on the investor section of the Company's website at  www.glantus.com .  Full Financial Statements and Annual Report will be published in June 2022 and made available on the Company's website and sent to shareholders.

Final results presentation

Maurice Healy (CEO) and Grainne McKeown (CFO) will provide a live presentation relating to Glantus 2021 Final Results via the Investor Meet Company platform on 31 May 2021 at 5pm 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

About Glantus

S ince 2017, Glantus, a leading provider of software as a service ("SaaS") solutions, has been helping global corporates analyse, automate and digitise their accounts payable function on its proprietary platform to recover lost working capital. Used by over 400 corporates worldwide, including 120 Tier 1 customers, the platform analyses over $1.6Tn spend, and has oversight of 120m payments annually.

Glantus provides a proprietary and fully digital end-to-end solution for companies' AP finance functions. It leverages technology by deploying advanced data analytics capabilities, including artificial intelligence (AI) and optical character recognition (OCR), Robotic Processes Automation (RPA) and advanced algorithms to consolidate and verify the accuracy of accounts payable. It works to discover and recover lost working capital, improve efficiency, minimise errors, measure performance and mitigate fraud.

 For more information see  glantus.com  

Chairman's Statement

Overview

This past year has been a landmark one for our Company. I am extremely proud of the work performed by our executive team under the leadership of our CEO Maurice Healy, and this is clearly reflected in the financial results for 2021 published today.  In May 2021 we successfully completed our fundraise and admission to London Stock Exchange's AIM market (AIM: Glan), providing the Group with the funds to invest in its continued product development and evolution, expanding its sales & marketing opportunities and providing the business with the ability to consider larger acquisitions of complimentary technologies and customer reach. Since admission, the Group has acquired US based Technology Insights Corporation in July 2021, and in November 2021 we completed the acquisition of Meridian Cost Benefit Ltd., a UK company.

I would like to thank my fellow non-executive directors, Tom Price and Diane Gray-Smith, appointed at the time of the IPO for their invaluable insights and contributions as we continue our strategy to grow Glantus internationally. There is always work to be done in a rapidly growing company and their dedication and commitment is very much appreciated.

Since the year end Diane has taken up an executive position within Glantus but remains on the plc Board. Work is underway to appoint another independent non-executive director in 2022.

Notwithstanding the admission process our teams have grown, supporting our expanding service offering, achieved operational efficiencies whilst the Company has remained focussed on delivery to our customers and shareholders.

This is a tremendous accomplishment.

Results

The Group delivered revenue and other income growth of 27% to €10.7m (FY20: €8.5m) and adjusted EBITDA growth of 49% to €3.1m (FY20: €2.1m) which reflects a strong performance across all business units.

Technology

We continue to evolve and improve our technology on the proprietary Glantus SaaS platform, taking advantage of strides in data analytic tools, artificial intelligence, robotic processes, optical character recognition and advanced algorithms to deliver a compelling AP solution that presents immediate return on investment for our customers.

Environment, Social and Governance Considerations

At Glantus we encourage, promote and continuously seek to improve a culture of good governance throughout our business. We have an inclusive open environment and transparency, accountability, risk management and responsibility is at the core of our organisation. We continue to operate with the environment in mind, being socially responsibly and investing in our people.

As Chairman and on behalf of the Board I would like to thank Maurice and his team for an incredibly successful year and I look forward to the year ahead.

Barry Townsley CBE

Non-Executive Chairman

30 May 2022

Chief Executive Statement and Operational Review

I am delighted to present Glantus' maiden full year results as a public company for the year ended 31 December 2021.  It has been an exceptional year for the Group, in which we accomplished the performance goals we committed to at IPO including investment in account management, sales and marketing and completed successful acquisitions in the US and UK. This performance was even more impressive with the challenging backdrop of a global pandemic.

As our story continues to evolve, this year will be about executing and expanding on our growth plans.

Strategy

The AP market continues to grow and continues to be a very attractive sector as the importance of AP to secure supply chains and influencing working capital escalates. It is also recognised as a crucial part of the digitisation and innovation strategies within organisations.

Glantus technology works with our clients' existing ERP systems and provides a proprietary and fully digital end-to-end solution for companies' finance functions. It employs advanced data analytics capabilities, including artificial intelligence ("AI") and optical character recognition ("OCR"), to consolidate and verify the accuracy of AP. It works to discover and recover lost working capital, improve efficiency, minimise errors, measure performance and mitigate risk.

Our SaaS technology platform is highly respected and supports over 400 customers, in over 50 countries, 120 of which are Tier 1 companies. Across our suite of products, we have analysed $1.6 trillion of spend over 120 million individual payments. We have 4.8 million suppliers on our platform.

The Glantus target customer is any organisation with an annual spend of over $500 million and with suppliers in excess of 4,000.

Our current product offering is noted below with product expansion versus prior years a result of the integration of our strategic and technology driven acquisitions.  Datashark SaaS platform hosts the following suite of products;  

Discover:   Advanced analytics using AI to proactively identify, minimise and facilitate recovery of overpayments, releasing working capital;

Delve : OCR technology and advance algorithms used to reconcile Vendor statement to the Accounts Payable transaction data within our clients' ERP systems to recover overpayments and errors;

Flow:   Robotic Process applications combined with OCR and AI to automate workflows to optimise P2P matching, approval and posting processes; and  

Origin: A propriety semi automated service using advanced algorithms to identify and expedite the recovery of unclaimed credits from vendor statements.

A further exciting opportunity the Company has begun exploring is leveraging the existing technologies, data, and expertise to develop a unique and fully integrated buyer-led supply chain finance programme.

People

We recognise the value and contribution every one of our employees makes to the success of Glantus and for that reason our employees remain our biggest investment.

I am very proud of all our teams in EMEA and US adapting to a rapid changing world in terms of environment and the Glantus products. 

At Glantus, we are committed to building & developing a "great workplace" ethos. We added a Head of People & Culture in early 2021 whose remit is to work with everyone in the Glantus team to build a special working environment on the pillars of Talent Acquisition, Talent Development, Performance Coaching, Engagement & Culture and Reward & Recognition.

Our commitment to investment in our current staff and growing the Glantus team through acquiring highly rated talent will continue in 2022. We are pleased that the acquisitions we have made have meant we have captured some of the most talented people in the AP sector. 

We have added over 40 people to our global team in the last 12 months and have an employee turnover rate of less than 10%, in contrast to the industry average of nearly 20%.

This commitment will ensure we have the dedicated and committed people to continue our growth trajectory in 2022 and beyond.

This year we are pleased to announce two appointments which build our senior leadership structure.

Diane Gray-Smith, previously a non-executive director on the plc Board, has joined the Company as a full-time executive in the role of Chief Corporate Growth Officer from March 2022. Over the last decade, Diane has been in the C Suite of global fintech companies in the hypergrowth space and brings tremendous experience and background to Glantus as we continue to expand our platform offering. Diane reports directly to the CEO and retains her seat on the plc Board. Diane will be exploring a unique and fully integrated supply chain finance programme to complete the Glantus offering from 'procure to pay'.

We have also bolstered our Operations leadership with the appointment of a new Chief Operating Officer ("COO"). David Rosenthal has worked at COO level in large financial services businesses at national and global level. He has been instrumental in the definition and implementation of products and services and has significantly scaled-up companies by delivering operational and strategic transformation programs through digitisation and automation. David is an expert in getting the most from the budget, resources, time, and people available. David is responsible for the day to day running of the business units, reporting directly to the CEO.

Non-Executive Director

Our Board is very engaged and add a wealth of experience and support to the executive team.  With the migration of Diane Gray-Smith from an independent non-executive role to our Chief Corporate Growth Officer in March 2022, work has begun to find another independent non-executive director.

Technology

Throughout 2022, a priority will be to continue to invest, develop, build and explore leading edge technologies to facilitate growth and frictionless end to end servicing of AP departments which will drive adoption and scale of the Glantus product suite.

The customer is at the heart of our product innovation. Our development and engineering teams in Poland and Lithuania, Ireland, UK, and the US continue to work with our product teams and our customers identifying and developing products to address pain points and friction in the AP lifecycle.

Currently the platform has integrated proprietorial IP that allows advanced data analytics capabilities using AI, OCR, RPA, advanced data cleansing algorithms and fraud analytics to consolidate and verify the accuracy of AP. It works to discover and recover lost working capital, improve efficiency, minimise errors, measure performance and manage risk.

In addition, we have begun exploring the integrated technology to support our move into supply chain finance. We look forward to expanding on this strategy in the coming year.

Branding and Marketing

The last year has seen the development and definition of our suite of products focussed on the AP market. Our products Datashark Discover, Datashark Delve, Datashark Flow, and Datashark Origin are now considered best of breed in their class. Our continued development sees the evolution of added value applications into other areas of the AP function, and we look forward to sharing exciting product news throughout 2022. The development of our products is powered by our unique, proprietary access to data related to 1.6 trillion USD of corporate spend every year.

We are pleased to announce the rebranding and repositioning of Glantus. The new logo and strapline "Liberate, Innovate" has been well received by both customers and the market. My sincere thanks to our product and marketing teams for their incredible work in this area of our business. We also thank our customers for their invaluable input.

Partnerships

As Glantus reaches out to new customers in innovative ways, our global partnership program offers us an efficient way to develop customers in new territories.

We recently announced new key partnerships including geographic expansion. Our partnerships with companies like TealBook (Canada) and VAT IT (South Africa) are our first foray into new international markets. These partnerships provide Glantus with links to new product sets that enhance both Glantus and our partners to create real value for our mutual customers.

The continued development of our partner network globally, enables us to realise the positive influences and styles of business-to-business referral relationships that both demonstrates and creates value for our customers and shareholders. This area will remain a focus for investment during 2022 and as we mature our partnership programs, we shall further significantly increase our reach and our potential to increase our revenues.

Acquisitions

Our successful acquisitions and integrations confirm the value of our acquisition strategy, and we will continue to consider acquisitions that expand our Glantus offering, customer base and technologies.

Our customers

The longevity of our customer relationships is testament to the quality of the product and service Glantus provides, and the efficiencies in working capital our platform delivers.

We have an incredibly successful client onboarding program that connects our clients' ERP data via API with ease and little disruption.

Strong relationships with our customers are key to our success and we have a highly motivated and engaged sales team that understands our client needs, together with sales support and customer success teams.

Glantus' customers are diverse globally both in physical location and industry segment. 

In 2021 we onboarded significant global brands and now have in excess of 120 Tier 1 clients.  The sales team have continued to develop a strong pipeline which is converting to sales in 2022 and beyond. 

While challenged with not being able to physically meet our customers in 2021, we maintained regular and ongoing communications remotely. Since COVID restrictions have been relaxed we ensure we attend AP conferences and Shared Services events meeting our customers and maximising the Glantus exposure in the sector.

Glantus has set a high bar in terms of compliance, data and risk management successfully gaining re accreditations in ISO 27701, ISO 27001 and ISO 9001 across the Group.

Community & environment

The global pandemic has presented opportunities to companies to rethink their approach to environmental impact and we are committed to reducing our environmental footprint. In the last year we have reviewed our business operations, maximised our resources and reduced our footprint in all our office locations. 

Outlook

Trading in the new financial year has been in line with the Boards' expectations and the business model and strategy provides a strong platform for significant growth.  Looking forward, the Board has the confidence of the continued and sustained demand for the Glantus solutions and the enormous potential for additional products to be integrated onto the Glantus platform. We will achieve operational efficiencies as we continue to evolve and look to the future with confidence.

My sincere thanks go to the entire Glantus team of diligent, creative, and talented professionals. We look forward to 2022 with increased confidence and determination to grow our organisation globally to be a leading SaaS platform in the AP space and provide an exceptional return to our shareholders.

Maurice Healy

Chief Executive Officer

30 May 2022

Financial Review

Chief Financial Officer's statement

We are pleased to report strong results in key financial metrics resulting from both organic and acquisitive growth. 

Key Performance Indicators

€'000		FY21	FY20	YoY Change
Revenue inc. other income		10,740	8,453	27%
Gross Profit		8,345	6,585	27%
Gross Profit %		79%	81%	-2%
Adjusted EBITDA[1]		3,103	2,077	49%
Adjusted EBITDA[2] %		29%	25%	16%
Adjusted operating profit[3]		1,676	1,358	23%
Adjusted Profit before tax		709	684	4%
Closing cash and cash equivalents		2,353	1,891	24%
Basic & diluted EPS (cents) 3		(6.89)	(1.19)	479%
Adjusted basic EPS (cents)[4]		9.36	7.90	18%
Adjusted diluted EPS (cents) 3		8.73	7.32	19%
Customer Numbers		430	328	31%
Subscription Churn Rate		2.9%	6.9%	-58%

1.  Adjusted to exclude exceptional costs

2.  Adjusted to exclude exceptional costs

3.  The weighted average number of shares in EPS calculation reflects a position as though the total numbers of Ordinary Shares of 35,408,185 (including outstanding share options of 2,712,970) were in issue at the year ended 31 December 2020. The retrospective treatment of the FY20 comparatives is required to reflect the share capital reorganisation which took place in April 2021.  The weighted average number of shares in issue at 31 December 2021 takes into account the issue of 11,298,794 shares issued as a result of the IPO and acquisitions.

Revenue and other Income growth of 27% to €10.7m (FY20: €8.5m) came as a result of strong organic trading performance and acquisition of Technology Insights Corporation in July 2021 and Meridian Cost Benefit in November 2021.

Adjusted EBITDA growth of 49% to €3.1m (FY20: €2.1m) reflects increased revenue and robust cost control at operational level and acquisition efficiencies.

Adjusted Gross Profit slightly reduced to 79% as a result of mix of revenue streams in 2021.

Customer numbers continue to grow with focus on tier 1 customers, subscription churn is low at 2.9% demonstrating the value and dependency customers place on the SaaS solutions.

Reconciliation of statutory figures to alternative performance measures

				FY21	FY20
			Note	€ '000	€ '000
Revenue trading			3	10,523	8,171
Other income				217	282
Cost of sales				(2,178)	(1,586)
Adjusted Gross profit				8,562	6,867
Administrative expenses				(5,459)	(4,790)
Adjusted EBITDA				3,103	2,077
Amortisation of development costs and goodwill				(1,229)	(482)
Depreciation				(198)	(237)
Adjusted Operating profit				1,676	1,358
Finance costs				(967)	(674)
Adjusted Profit on ordinary activities before taxation				709	684
Exceptional Items			6	(2,948)	(794)
Share Based Payments				(24)	(91)
Loss before taxation				(2,263)	(201)
Income tax				(22)	(111)
Loss for the financial year				(2,285)	(312)
Other comprehensive loss for the year				126	(5)
Total comprehensive loss for the year attributable to the owners of the Group				(2,159)	(317)

Revenue

Total revenue and other income recognised in the year increased by 27% to €10.7m (FY20: €8.5m) with growth in both recurring and non-recurring revenue streams.  

Total subscription and transactional revenue increased to €9m from €7.5m in FY20.

Professional services revenue increased by €0.8m from €0.6m attributable to delivery of backlog in 2020 orders as a result of impact of COVID on customers' business. 

Other income of €271K represents primarily grants received for investment in R&D projects with total trading income at €10.5m.

Revenue model and sources of revenue

Glantus generates revenue through recurring annual contracted subscription revenue ("ARR") and transactional revenue from recovery audit and professional services.

Recurring revenue is the revenue that annually repeats either under contractual subscription or predictable transactional billing. Subscription revenue increased 79% to €3.9m (FY20: €2.1m).  Of this increase €1.1m is attributable to acquisition of Technology Insights Corporation and €1.0m is from organic growth of subscriptions demonstrating a continued growth trend underpinning future revenue forecasts.

Total annualised subscription revenue as of 31 December 2021 was €5.2m (FY20: €2.2m).  Subscription churn remains very low at 2.9% with the average length of customer relationships being over 7 years demonstrating the continued value customers are deriving from the Glantus product offering.

All of Glantus' products are interlinked and can be sold separately or together.  Recovery audit solutions can be sold independent of software solutions or combined as a package which together maximises the operational efficiencies and working capital recovery for the customer.

		FY21		FY20
		€ '000	% Split	€ '000	% Split
Subscription Revenue		3,857	37%	2,149	26%
Transactional Revenue		5,193	49%	5,383	66%
Total recurring Revenue		9,050	86%	7,532	92%
Professional Services Revenues		1,473	14%	639	8%
Reported revenue		10,523		8,171

Geographical split

		FY21		FY20
		€ '000	% Split	€ '000	% Split
Amount of revenue by region:
United Kingdom		3,878	37%	2,577	32%
United States of America		3,679	35%	3,832	47%
Republic of Ireland		2,478	24%	1,382	17%
Others		488	5%	380	5%
Reported Revenue		10,523		8,171

The Company's customers are located primarily in UK, Ireland and US with 5% (FY20: 5%) deriving from other countries in Europe, Asia and Africa.  Transactional revenues in the US declined in 2021 as a result of the impact of customer spend due to COVID however this is showing signs of recovery in 2022.

Adjusted Gross Profit

Adjusted gross profit increased by 25% to €8.6m (FY20: €6.9m) which reflects the addition of acquisitions in 2021.  Gross Profit % reduced slightly to 79% (FY20: 81%) as a result of mix of revenue streams in 2021. 

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 the impact of net finance costs, depreciation, amortisation, share based payment charges and exceptional items.

			FY21	FY20
		€ '000		€ '000
Operating (Loss)/profit		(1,296)		473
Amortisation		1,229		482
Depreciation		198		237
Exceptional Items		2,948		794
Share Based payments		24		91
Adjusted EBITDA		3,103		2,077
Adjusted EBITDA %		29.5%		25.4%

Adjusted EBITDA increased by 49% to €3.1m (FY20: €2.1m) 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 6).

Exceptional costs

Exceptional costs include fee costs related to the IPO of €0.9m, payment to senior lender Beachpoint Capital of €1m as part of a fee arrangement which triggered on change of control at IPO.  AIM admission totalled €1.8m - €0.9m exceptional cost within the statement of comprehensive income and €0.9m booked in the share premium account.

Acquisition costs of €1m relate to legal and professional fees for acquisition of Technology Insight Corporation and Meridian Cost Benefit in 2021.

Other exceptional items include €0.5m restructuring costs as a result of the integration of acquisitions and a benefit of €0.5m being US PPP (Payroll Protection Program) loan forgiveness which is a US Government COVID business support scheme. 

Exceptional Costs		FY21	FY20
		€ '000	€ '000
Acquisition costs		1,015	546
Restructuring costs		489	745
AIM Admission costs		902	-
Fee to Beachpoint Capital on IPO admission		1,000	-
Other exceptional (income)		(458)	(497)
Total exceptional items		2,948	794

Share based payments

Share based payments account for changes to share options outstanding as of 31 December 2021.

Adjusted profit before tax

Operating Loss before tax was adjusted to exclude exceptional items creating an adjusted operating profit which increased by 23% to €1.7m (FY20: €1.4m)

After financing expense, profit before tax adjusted to exclude exceptional items increased 4% to €0.70m (FY20: €0.68m.

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).

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

		FY21	FY20
Earnings		€ '000	€ '000
Loss for the year		(2,285)	(312)
Taxation		22	111
Amortisation		1,229	482
Depreciation		198	237
Exceptional items		2,948	794
Share based payments		24	91
Finance costs		967	674
Adjusted Earnings		3,103	2,077
		Number	Number
Weighted average number of ordinary shares		'000	'000
Total shares in issue (weighted)		33,168	26,275
Total diluted shares (weighted)		35,548	28,389
EPS		Cent	Cent
Basic & diluted EPS		(6.89)	(1.19)
Adjusted EPS		Cent	Cent
Basic EPS		9.36	7.90
Diluted EPS		8.73	7.32

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.

Cashflow

Operating cashflow was €0.4m used within 2021 partly due to an increase in working capital as at 31 December 2021.  It is expected this will convert to cash in 2022.

Cash used in investing activities was primarily for acquisition of Technology Insights Corporation and Meridian Cost Benefit totalling €6.9m.

Payment of deferred consideration of €2.4m comprised €2m to JPD Financial, acquired in 2020, which completes the total acquisition consideration and €0.4m to Technology Insights Corporation in December 2021. 

Cash spend on R&D investment totalled €1.2m for the year.

Cash earned from financing activities was €11.3m largely driven from IPO funds raised on admission to AIM. The IPO fees were €1.8m and €1m fee to Beachpoint Capital on IPO admission. 

The Group also received debt €5m funding from Beachpoint Capital in July 2021 which was utilised for the acquisition of Technology Insights Corporation.

Debt Funding

Total debt outstanding as of 31 December 2021 was €10.9m.  This was largely made up of Beachpoint Capital loan facility of €10.4m and Bank of Ireland €0.2m and Enterprise Ireland €0.3m.  It is the Company's intention to refinance the existing senior debt in 2022. 

Gráinne McKeown

Chief Financial Officer

30 May 2022

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
		Year ended 31 December			Year ended 31 December
			2021		2020
	Note		€ '000		€ '000
Revenue	3		10,523		8,171
Cost of sales			(2,178)		(1,586)
Gross profit			8,345		6,585
Administrative expenses			(5,459)		(4,790)
Exceptional items	6		(2,948)		(794)
Share based payments			(24)		(91)
Amortisation			(1,229)		(482)
Depreciation			(198)		(237)
Other income			217		282
Operating (loss)/profit			(1,296)		473
Finance costs			(967)		(674)
Loss on ordinary activities before taxation			(2,263)		(201)
Income tax			(22)		(111)
Loss for the financial year			(2,285)		(312)
Other comprehensive income / (loss) for the year			126		(5)
Total comprehensive loss for the year attributable to the owners of the Group			(2,159)		(317)
Loss per share - basic & diluted (cent)	7		(6.89)		(1.19)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
		As at 31 December		As at 31 December
			2021	2020
	Note		€ '000	€ '000
ASSETS
NON-CURRENT ASSETS
Intangible assets	9		17,509	7,251
Property, plant and equipment			240	355
			17,749	7,606
CURRENT ASSETS
Trade and other receivables			6,751	2,909
Cash and cash equivalents			2,353	1,891
			9,104	4,800
TOTAL ASSETS			26,853	12,406
EQUITY AND LIABILITIES
EQUITY
Called up share capital presented as equity	8		38	1
Share premium			12,083	1,000
Reorganisation reserve			656	656
Foreign exchange reserve			(44)	(170)
Share option reserve			115	91
Retained earnings			(2,791)	(1,481)
TOTAL EQUITY			10,057	97
CURRENT LIABILITIES
Trade and other payables			6,268	7,726
NON-CURRENT LIABILITIES
Long term liabilities			10,528	4,583
TOTAL LIABILITIES			16,796	12,309
TOTAL LIABILITIES AND EQUITY			26,853	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 based payment charge					91		91
Total comprehensive loss for the year				(5)		(312)	(317)
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 based payment charge					24		24
Reorganisation for AIM Listing  8	25	(1,000)				975	-
Issue of shares  8	12	12,083					12,095
Total comprehensive loss for the year				126		(2,285)	(2,159)
At 31 December 2021	38	12,083	656	(44)	115	(2,791)	10,057

CONSOLIDATED STATEMENT OF CASHFLOWS
		Year Ended 31 December		Year Ended 31 December
		2021		2020
	Note	€ '000		€ '000
Cash flows from operating activities
Group loss after tax		(2,285)		(312)
Adjusted for:
Interest payable		967		674
R&D tax credit income		(72)		(82)
Income tax expense		22		111
Depreciation		198		237
Amortisation		1,229		482
Movement in trade and other receivables		(2,339)		471
Movement in trade and other payables		1,795		310
Loss on disposal of tangible assets		17		1
Net tax received		(4)		60
R&D refund received		(72)		26
Share-based payment expense		24		91
Effects of movement in exchange rates		126		(5)
Net cash flows (used in)/generated from operating activities		(394)		2,064
Cash flows from investing activities
Purchase of property, plant and equipment		(37)		(70)
Payment for acquisition of subsidiaries, net of cash acquired	10	(6,853)		(1,907)
Payment of deferred consideration		(2,364)		(250)
Payment for software development asset		(1,189)		(732)
Net cash used in investing activities		(10,443)		(2,959)
Cash flow from financing activities
Loans received	11	4,537		628
Interest payable		(967)		(673)
IPO - Exceptional costs		(2,948)		-
Equity (Proceeds from issue of shares)		11,614		-
Equity (IPO costs against share premium)		(937)		-
Net cash generated from/(used in) financing activities		11,299		(45)
Net increase/(decrease) in cash and cash equivalents		462		(940)
Cash and cash equivalents at the beginning of the year		1,891		2,831
Cash and cash equivalents at the end of the year		2,353		1,891

Notes to the financial information

1.  General Information

Glantus Holdings Plc and its subsidiaries ("the Group") is a public limited company incorporated in the Republic of Ireland. The registered office is Marina House, Block V, Eastpoint Business Park, Dublin, D03 AX24.  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

The financial information set out herein does not constitute statutory accounts.  The financial information for the year ended 31 December 2021 has been extracted from the Company's draft audited financial statements.  The annual report and statutory accounts for the year ended 31 December 2021 will be finalised shortly on the basis of the financial information presented in this announcement.  This announcement was approved on behalf of the Board of Directors on 27 May 2022.

The comparative figures for the year ended 31 December 2020 have been extracted from the financial statements prepared for the Company's admission onto the Alternative Investment Market of the London Stock Exchange and were included in the Company's admission document.

The statutory financial statements for the year ended 31 December 2020 were prepared in accordance with FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland.

On admission to AIM, the Company adopted International Financial Reporting Standards and interpretations (collectively "IFRS") issued by the International Accounting Standards Board ("IASB") as adopted by the European Union.  The financial information in this announcement has been prepared and presented on that basis.

The information included in this financial announcement has been prepared on a going concern basis under the historical cost convention, and in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union and the International Financial Reporting Interpretations Committee ("IFRIC") interpretations issued by the International Accounting Standards Board ("IASB") that are effective as at the date of this financial information and in accordance with the provisions of the Companies Act, 2014.

The Group's accounting policies are set out in the Company's admission document.

Going concern 

At the time of approving this financial information, 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 financial information.

3.  Revenue 

Segmental information 

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 software solutions including related recovery audit services. 

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

		Year ended 31 December	Year ended 31 December
		2021	2020
		€ '000	€ '000
Recurring Revenue		9,050	7,532
Non-recurring revenue		1,473	639
Reported revenue		10,523	8,171
Recurring as % of total revenue		86%	92%
		Year ended 31 December	Year ended 31 December
		2021	2020
		€ '000	€ '000
Amount of revenue by class of activity:
Recurring annual subscriptions		3,857	2,149
Recurring recovery services		5,193	5,383
Professional services & licences		1,473	639
Reported revenue		10,523	8,171

3.  Revenue (Continued)

Geographical analysis 

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

		Year ended 31 December	Year ended 31 December
		2021	2020
		€ '000	€ '000
Amount of revenue by region:
United Kingdom		3,878	2,577
United States of America		3,679	3,832
Republic of Ireland		2,478	1,382
Others		488	380
Reported Revenue		10,523	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 and costs incurred in post-acquisition restructuring and are further detailed in Note 6 below.

		Year ended 31 December			Year ended 31 December
				2021	2020
			€ '000		€ '000
Operating (Loss)/profit			(1,296)		473
Amortisation			1,229		482
Depreciation			198		237
Exceptional items			2,948		794
Share based payments			24		91
Adjusted EBITDA			3,103		2,077
Adjusted EBITDA % of revenue			29.5%		25.4%

5.  Adjusted Profit before Tax

		Year ended 31 December	Year ended 31 December
		2021	2020
		€ '000	€ '000
Loss on ordinary activities before tax		(2,263)	(201)
Exceptional items		2,948	794
Share based payments		24	91
Adjusted Profit before Tax		709	684

6.  Exceptional Items

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

		Year ended 31 December	Year ended 31 December
		2021	2020
		€ '000	€ '000
Acquisition costs		1,015	546
Restructuring costs		489	745
AIM Admission costs		902	-
Fee to Beachpoint Capital on IPO admission		1,000	-
Other exceptional income		(458)	(497)
Total exceptional items		2,948	794

Total costs for AIM admission totalled €1.8m; €0.9m included as exceptional costs within the statement of comprehensive income and €0.9m offset against the share premium account.

Other exceptional Income relates to US government loan forgiveness under PPP (Payroll Protection Program) COVID support initiative for employers.

7.  Earnings per share

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

In preparation for admission to AIM a capital restructuring was implemented in April 2021 with a 25 million bonus share issue.  The weighted average of ordinary shares has been adjusted to reflect the bonus share issue.

		Year ended 31 December	Year ended 31 December
		2021	2020
Earnings		€ '000	€ '000
Loss for the year		(2,285)	(312)
Taxation		22	111
Amortisation		1,229	482
Depreciation		198	237
Exceptional items		2,948	794
Share based payments		24	91
Finance costs		967	674
Adjusted Earnings		3,103	2,077
		Number	Number
Weighted average number of ordinary shares		'000	'000
Total shares in issue (weighted)		33,168	26,275
Total diluted shares (weighted)		35,548	28,389
EPS		Cent	Cent
Basic & diluted EPS		(6.89)	(1.19)

Adjusted EPS		Cent	Cent
Adjusted basic EPS		9.36	7.90
Adjusted diluted EPS		8.73	7.32

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	€	€
Opening position at 1 January 2021		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		259,078	259	21,854
Shares issued		11,298,794	11,299	12,997,843
AIM admission costs offset against share premium				(936,984)
At 31 December 2021		37,833,316	37,833	12,082,713

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 with Enterprise Ireland totalling €300,000 were paid up and cancelled.   

4. On 11 May 2021, 196,078 ordinary shares were issued on exercising of share options. 

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

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

7. On 15 July 2021, 913,490 Ordinary shares were issued as part of Technology Insights Corporation acquisition. 

8. On 28 July 2021, 63,000 ordinary shares were issued on exercising of share options. 

9. On 24 Nov 2021, 581,395 Ordinary shares were issued as part of Meridian Cost Benefit acquisition.

9.  Intangible Assets

The carrying value of intangible assets rose from €7.2m as at 31 December 2020 to €17.5m as at 31 December 2021.

€10.4m of intangible assets were recognised on acquisitions during the year together with a credit of €0.1m for deferred consideration.

Additionally, €1.2m of development expenditure costs were capitalised and the total amortisation charge was €1.2m.

10. Cashflow used in investing activities

Cashflow used for acquisitions in 2021 was made up of:

	Year ended 31 December
	2021
	€ '000
Technology Insights Corporation	5,529
Meridian Cost Benefit	1,324
Cashflow used in acquisitions	6,853

11. Loans received

An additional loan of €5m was received in 2021 from Beachpoint Capital as part of the acquisition of Technology Insights Corporation.

 Availability of this announcement

Copies of this announcement are available from the Company's website, www.glantus.com

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