Update on trading and financial position

RNS Number : 2758Y

i-nexus Global PLC

08 September 2020

 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, DIRECTLY OR INDIRECTLY,  INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF EU REGULATION 596/2014

8 September 2020

i-nexus Global plc

("i-nexus" or the "Company")

Update on trading and financial position

i-nexus  Global plc  (AIM: INX), a leading provider of cloud-based Strategy Execution software solutions designed for the Global 5000, today provides an update on its trading and financial position in anticipation of its financial year end on 30 September.

Operational and trading update

Since the interim results announcement, management's priorities have been threefold: continuing focus on cash conservation and further reducing the operating cost base; working in close collaboration with existing customers to prepare for and implement the Summer 2020 release; and re-energising the Company's sales pipeline. The Board is pleased to report that much has been achieved on all three fronts:

Cash conservation:

· The monthly operating cost base has been further reduced to £360K from a peak of over £850K. As a result, the Company is now operating at monthly P&L break-even

· The Company had trade debtors exceeding £800k and a positive cash balance of approximately £190k at end July 2020

Product launch and contract wins:

· The Summer 2020 product release went live last week following intensive design and development and a collaborative programme of customer trials and workshops. The new product has been positively received by existing customers and prospects alike

· The Company has secured a new customer, on a multi-year contract, launching directly onto the new platform. In addition, a substantial Services order has been secured in advance of a Global roll out plan at an existing customer, adding to the Company's Annual Recurring Revenue ("ARR") for this financial year and next

Re-energising the sales pipeline:

· The Company's active sales pipeline has been rebuilt to pre-COVID-19 levels and now comprises live opportunities with a potential estimated total ARR value of approximately £1.8m.

Financing update

At the time of the Interim results update, the Company announced that the Board had resolved to review strategic options to introduce fresh capital to the business, in light of the difficult and uncertain trading environment caused by COVID-19.  The Company has agreed with HMRC a deferral and repayment plan in respect of PAYE and National Insurance payments amounting to approximately £430K but has otherwise thus far been unable to secure access to additional funding. Based on the Company's latest cash flow projections,  the Directors anticipate that the Company is likely to experience a modest cash shortfall by the end of the calendar year, but should return to a positive cash balance from February 2021 onwards, in line with i-nexus' regular seasonal cashflow profile. As a result, the Board is, as a key priority, scaling up its efforts to source new financing facilities with immediate effect.

 For further information, please contact:

i-nexus Global plc Simon Crowther, CEO Alyson Levett, CFO	Via: Alma PR
N+1 Singer (Nominated Adviser and Broker) Sandy Fraser (Corporate Finance) Tom Salvesen (Corporate Broking)	Tel: [phone]
Alma PR Caroline Forde / Josh Royston / Robyn Fisher	Tel: [phone]

 

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