Final Results

RNS Number : 3488M
Pelatro PLC
23 May 2022
 

23 May 2022

Pelatro Plc

 

("Pelatro" or the "Group")

 

Final Results

 

 

Pelatro Plc (AIM: PTRO), the precision marketing software specialist, is pleased to announce today its audited results for the year ended 31 December 2021.

 

Financial highlights

 

·   Significant increase in revenue to $7.3m (2020: $4.0m)

·   Recurring revenue of $4.8m (2020: $2.9m)

·   Adjusted EBITDA* of $2.8m (2020: $0.4m)

·   Adjusted loss per share of (0.4)¢ (2020: (5.5)¢)

• Equity placing to raise $4.3m to invest in our business and repay debt

·   Gross cash as at 31 December 2021 $3.3m (2020: $1.8m)

• Trade receivables of $5.0m (2020: $3.5m); c. $1.9m received from debtors since year end

 

Operational highlights

 

• Three new customers bringing total to 23

• Now processing data of over one billion subscribers every day

• With recent contracts a dominant presence in Asia and increasingly in Africa

 

Outlook

 

·           Substantial order book and good visibility over revenues for the coming year - ARR now c.80% of expected FY22 revenue

• New business pipeline # of c. $17m

• Further drive into fast growing mobile advertising space

 

Richard Day, non-executive Chairman of Pelatro commented:

 

"We are delighted to be able to show in these results figures which are in line with expectations; with solid growth in the revenue line of over 80% to $7.3m from $4.0m the previous year, with the majority being of a recurring revenue nature. The Group continues to trade in-line with expectations and our recurring revenue base gives us good visibility over the coming year and, together with our new business pipeline, gives us every confidence for the rest of 2022 and beyond"

 



 

Presentation

 

A copy of the results presentation to be provided to investors and analysts will be available on Pelatro's website in due course (www.pelatro.com).

 

For further information contact:

 

Pelatro Plc


Subash Menon, Managing Director

c/o finnCap

Nic Hellyer, Chief Financial Officer


 


finnCap Limited (Nominated Adviser and broker)

+44 (0)20 7220 0500

Carl Holmes/Kate Bannatyne/Milesh Hindocha (Corporate Finance)




 

* earnings before interest, tax, depreciation, amortisation, exceptional items and share-based payments

 

** ARR is calculated by reference to the full annualised value of a contract; the total ARR thus calculated may not all accrue in the 12 months following due to (for example) implementation periods and other timing differences between signing a contract and the "Go Live" or similar date

 

# Pipeline value is defined as expected license revenue or 3 x ARR, depending on the nature of the contract

 

This announcement is released by Pelatro Plc and, prior to publication, the information contained herein was deemed to constitute inside information under the Market Abuse Regulations (EU) No. 596/2014. Such information is disclosed in accordance with the Company's obligations under Article 17 of MAR. The person who arranged for the release of this announcement on behalf of Pelatro Plc was Nic Hellyer, CFO.

 

 

Notes to editors

 

The Pelatro Group was founded in March 2013 by Subash Menon and Sudeesh Yezhuvath with the objective of offering specialised, enterprise class software solutions for customer engagement principally to telcos who face a series of challenges including market maturity, saturation and customer churn.

 

Pelatro provides its "mViva" platform for use by customers in B2C and B2B applications and is well positioned in the Customer Engagement space. Our technology orchestrates the digital journey of the customers of the telcos through contextual, relevant and real time offers and loyalty programs across multiple channels including websites, social media, apps and others.

 

For more information about Pelatro, visit www.pelatro.com

 



 

CHAIRMAN'S STATEMENT

 

Overview

 

The markets we serve have become increasingly sophisticated but the underlying themes of providing good service with outstanding products and generating real value for our customers continues to serve us and our customer base well. For us this has resulted in a year of consolidating our position as a recurring revenues service provider as well as winning new customers, ensuring we are able to report healthy growth in our business. We will still provide our software and services through a licence model if that is preferred by a customer, but this is no longer the norm.

 

Operations

 

We started the year in January 2021 with our mViva platform being chosen by an Asian telco for campaign management operations. This Asian telco is part of a much larger international telco group and we have found this is an ideal way to penetrate these larger diverse entities. We followed this with a Framework Agreement later in the year with the parent company, so that its operating companies in various jurisdictions can be serviced by Pelatro under one agreement. Including these and despite the Covid situation, Pelatro won three new telco customers in 2021, taking us to 23 customers in various countries around the world. We have also been extending the breadth and quality of our products and services we provide to our telco customers. Part of our growth effort has been directed towards the non-telco space, where non-telco brand campaigns and adverts can be sent to consumers via their mobile phones. We have recruited a senior manager for this area and are building the team but are proceeding cautiously in terms of new contracts to ensure that they are on appropriate terms.

 

India has taken longer to emerge from the various Covid disruptions than the UK and currently continues to remain cautious with regards to Covid. With our main operations based in Bangalore, we have successfully managed home working by our staff which has meant there has not been a significant effect on our day-to day operations and we have been able to continue to provide excellent levels of service to our customers. This included our five year Managed Services contract which went live with our largest customer in India. The implementation was smooth and successful, with over 400 million subscribers being transferred over to the new system.

 

The numbers of staff attending our offices safely for work has been at the 30% level for some time now and we expect this gradually to grow over the coming months. Our executive team have also been prevented from travelling overseas, but air travel has also opened up and they are now able to meet our international customer base and pursue new opportunities in person.

 

Non telco operations

 

Pelatro has been working on entering non telco sectors for the past nine months. We have initially focused on banks and fintech companies as sectors, with over 50 potential customers being targeted in India, as a geographic starting point. Through these extensive interactions over these months, it has become amply clear that these enterprises are keen on customer journey mapping, customer journey analytics and customer journey orchestration. This is a very new product set to these businesses but a number have expressed interest in exploring an engagement. Given our extensive experience in the telco sector our product mViva has very strong capabilities with respect to customer journey orchestration and on that basis we are confident of winning our first customer in this space during 2022.

 

We expect to undertake further recruitment to service this space when our initial customer engagements begin to mature and the business model develops further. The extent of this recruitment will depend on the potential geographic and sector breadth of the roll out.

 



 

Other developments

 

In June, we took the opportunity to raise approximately £3.3m through an equity placing of new shares with new and existing shareholders to help grow our sales and marketing as well as to repay debt and strengthen the Group's balance sheet. In December, our CFO Nic Hellyer, who had been with Pelatro for over four years on a part-time basis, moved to a full-time role with us.

 

We continue to closely monitor the situation in Ukraine, the response of international governments and any potential impact on the Group. Pelatro has a small development and support team in Russia, representing around 13% of the Group's cash cost base. This team can and does operate remotely with no requirement for travel, and is currently fully operational. The Group has no revenue from Russia or any other related sanctioned jurisdiction.

 

Outlook

 

Against this backdrop, we are delighted to be able to show in these results figures which are in line with expectations; with solid growth in the revenue line of over 80% to $7.3m from $4.0m the previous year, with the majority being of a recurring revenue nature. The Group also continues to trade in-line with expectations and our recurring revenue base gives us good visibility over the coming year and, together with our new business pipeline, gives us every confidence for the rest of 2022 and beyond.

 

 

 

Richard Day

Chairman

 

 

 

 



 

MANAGING DIRECTOR'S STATEMENT

 

Change, as they say, is the only constant phenomenon. Does this mean change can only be involuntary and accidental? Absolutely not. The type of change that people and organisations benefit from are those that are brought about by design. Those that involve strategizing and meticulous execution - particularly when it comes to a company. Your company went through a well-orchestrated change during 2019 and 2020 and the results came in during 2021.

 

The Orchestrated Change

 

When we started the process in 2019, we had clearly articulated both the goal and the path to it. The objective was to shift our revenue model from a one-time license fee model to recurring and/or repeating revenue, with an emphasis on recurring. Given that recurring revenue is now a sustainable 70% or so of revenue we believe we have achieved that goal. Furthermore, from a low of 20% at the time of the IPO in 2017, recurring and repeating business has gone up to around 90%, thereby significantly increasing the predictability and stability of the revenue stream, with the visibility quite high at the start of the year itself, with a key element of this being the quantum of annual recurring revenue ("ARR") as we win new contracts. We believe that we have now reached a stable level with respect to the share of these revenue streams and that augurs well for the business going forward.

 

Growing Customer Base  

 

Over the years, we have been successful in adding customers. While this was impacted by Covid-19, we added three new customers in 2021 taking our tally to 23 customers in 20 countries. Some of the key statistics are given below.

 

• Processing data of over one billion subscribers every day

• Processing over 60 billion transactions per day, in real time, in one customer site alone

• Executing over 15,000 campaigns every day

• Present in 20 countries

 

Scale is a critical element for any enterprise software and for us that has now been well established. From a geographical perspective, we now have a dominant presence in Asia and Africa. Leveraging these achievements, we are now spreading into Europe.

 

Going Above and Beyond

 

Our customers are operating in a highly competitive market wherein they are being squeezed by two strong forces - reducing revenue per customer and increasing churn. Between these two debilitating factors, the telcos are finding it extremely difficult to increase revenue and margin. In this tough situation, vendors need to shoulder more responsibilities and become true partners. Pelatro is committed to this vision. Over the past few years, we have built extensive capabilities in the following areas.

 

• Development of campaign strategy

• Campaign consultancy

• Campaign execution

• Platform operation

• Reporting

 

With these enhanced capabilities, we help our customers to effectively use our solution to increase revenue and reduce churn. In many instances some of Pelatro's revenue is linked to performance thereby ensuring that interests are aligned with our customers. Thus, we share the risk perceived by our customers while helping them to meet their objectives to the fullest extent possible.

 

We have been on this specific journey for the past three years and are convinced that this is the way forward. Our customers are increasingly seeing us as partners and not mere vendors. They are highly appreciative of the value added by Pelatro with respect to both the software solution and the overall operations. Such engagements are flourishing on the basis of actual incremental revenue generated by Pelatro over the past few years and a comparison of the same with the status within the telcos prior to that period, and the uplift brought about by Pelatro is compelling enough for the telcos to increasingly rely on us for operations in the form of managed services.

 

As noted in the Chairman's statement we have also begun the journey similarly to add value to non-telco customers. We will invest in this side of the business prudently and, while it is early days, we expect these engagements to further increase our revenue in the years to come.

 

I take this opportunity to thank all of you and look forward to your continued support in our effort to go above and beyond.

 

 

 

Subash Menon

Managing Director, CEO and Co-Founder

 



 

FINANCIAL REVIEW

 

Income Statement

 

Revenue

 

Out of our total revenue of $7.27m, approximately $4.79m (66%) arose from recurring revenue (2020: $2.85m), comprising some $3.46m from managed service and gain share contracts and the balance from post-contract support. A further $1.96m came from change requests (2020: $0.43m) which are not contractually "recurring" but tend to provide "repeat" income as our customers' usage of the product evolves. Accordingly, over 90% of revenue was "repeating" in nature, compared to just over 80% in 2020.

 

This increase reflects the push by the Group over the last few years into recurring revenue contracts which initially resulted in a fall in revenue as "one off" license revenues were replaced by sustainable longer-term contracts. Whilst the coronavirus pandemic over the last two years had a relatively limited impact on high-level decision making at our customers, it did nonetheless slow our marketing efforts which, for high-level enterprise software such as ours, do require some level of face-to-face contact. Despite this, three new customers were added during the year; this, together with the number of recurring revenue customers, further reduced customer concentration with now only two customers accounting for more than 10% of revenue.

 

Cost of sales and overheads

 

Cost of sales increased by 29% to $2.2m (2020: $1.7m). These costs comprise principally (i) the direct salary costs of providing software support and maintenance, professional services and consultancy; (ii) expensed customer implementation; (iii) third-party software maintenance and licensing costs; and (iv) sales commissions. The increase in 2021 results almost entirely from the full year effect of staff taken on to service managed service and similar contracts commenced in 2020.

 

Pre-exceptional overheads (excluding depreciation and amortisation) increased to $2.3m (2020: $1.9m), reflecting the increase in business activity and hence people costs, plus additional efforts in sales and marketing, notably establishing the Group presence via social media. Travel costs were maintained at a relatively low level given the ongoing restrictions on international travel and the Group's success in enabling support and implementation functions remotely.

 

Profitability

 

Adjusted EBITDA (earnings before interest, tax, depreciation, amortisation and exceptional items, as adjusted for the effect of certain non-recurring or exceptional items) rose strongly by over 6x in the year to $2.81m (2020: $0.44m). After taking into account net finance costs and depreciation and amortisation (including c. $0.7m of acquisition-related amortisation) loss before tax was $(0.67)m (2020: loss of $(2.22)m before exceptional items).

 

Adjusted loss per share was (0.4)¢ (2020: loss of (5.5)¢), and reported loss per share was (2.1)¢ (2020: loss (7.2)¢).

 

 



 

Statement of Financial Position

 

Intangible assets

 

Capitalised development costs and patents

 

Capitalised development costs reduced slightly to $2.6m (2020: $2.9m) reflecting a reduction in direct costs attributable to software development, particularly in Nizhny Novgorod. Amounts capitalised during the year included investments in the mViva Contextual Marketing Platform ("CMP") which was developed from v.6.1 to v.6.2, the Unified Communication management ("UCM")/Link product from 12.1 to 13.0 and various new modules which add to and enhance the core product suite. The carrying value of these software assets together with the carrying value of software assets capitalised in previous periods was reviewed for impairment at the balance sheet date and no impairment was required.

 

The Group continues to protect its IP by registering patents when relevant and spent a further $30,000 on patent development over the year. Net of amortisation, the net book value of intangible assets relating to development costs and patents in the statement of financial position is approximately $6.4m (2020: $5.9m).

 

Property, plant and equipment

 

Expenditure on property, plant and equipment was minimal at $88,000, principally relating to IT and peripheral equipment. This compares to $0.9m in 2020 which related mainly to IT equipment placed on site at a customer's premises to implement the related managed services contract.

 

Depreciation in the year amounted to $0.30m (excluding amounts relating to Right-to-Use assets now recognised under IFRS 16, and gross of amounts capitalised as intangible assets) (2020: $0.20m). The increase largely reflects depreciation now charged on the customer site IT assets referred to above. The aggregate net book value of property, plant and equipment fell accordingly from $1.22m to $0.98m.

 

Right of use assets

 

The Group recognises certain long-term leases under IFRS 16 as "right of use" assets. The reduction in the overall value of the right of use assets from $0.31m in 2020 to $0.24m in 2021, is net of depreciation of $0.17m and capital additions of $0.1m. These additions do not reflect new leases but instead the capitalised value of expected extensions to current leases. The Group has had its office accommodation requirements (principally in Bangalore) under review for some time, however, the COVID pandemic and associated uncertainty had put such considerations on hold, but the Group now believes that a significant office consolidation will take place by the beginning of 2023.

 



 

Trade receivables and contract assets

 

Trade receivables

 

At 31 December 2021 total trade receivables (i.e. including long-term receivables) stood at $4.96m (2020: $3.48m). This figure includes:

 

(a) a receivable of $0.64m the payment of which is subject to a government approval process in the customer's jurisdiction. This process generally leads to a substantial delay to the payment of the amount outstanding - the payment concerned was originally expected in Q4 2021; however, the delay was compounded by a change to the underlying procedure which has resulted in the payment now being expected in Q2 2022. This delay is purely procedural and no impairment of the underlying amount is expected; and

 

(b) a receivable of $1.14m relating to an entire license contract which, though live with the customer, was pending final approval. This has taken place post the year end and $0.46m of the debt has been received to date.

 

In addition to the $0.46m, just under $1.5m has been received since the year end to date, i.e. a total of $1.9m.

 

Contract assets

 

Contract assets are recognised relating to support and maintenance revenue and license fees as invoices are raised in arrears of the revenue recognition relating to the services being provided. In addition, contract assets include contract fulfilment assets relating to sales commission provisions, the cost of which is amortised over the life of the corresponding contract.

 

Short-term contract assets deriving from revenue (i.e. those which are expected to reverse in less than one year) decreased to $0.38m (2020: $0.46m), arising from one license contract signed in the year which had invoicing terms which differed significantly from the underlying performance obligations. Long-term contract assets deriving from revenue (i.e. those which are expected to reverse after more than one year) decreased to $0.23m (2020: $0.31m), reflecting the invoicing profile of various products and services, principally on PCS.

 

Fulfilment assets included in contract assets total $0.18m (2020: $0.15m) in respect of short-term assets (representing costs directly relating to certain contracts to be recognised in profit and loss in the next 12 months); and $0.38m (2020: $0.44m) in respect of long-term assets (representing costs directly relating to certain contracts to be recognised in profit and loss after one year). These assets largely reflect sales commissions first contracted in 2020.

 

Trade and other payables, provisions and contract liabilities

 

Trade and other payables

 

At the year end, short-term trade payables stood at $0.15m (2020: $0.81m), the reduction being due entirely to an exceptional amount due in respect of sales commissions payable at the end of 2020 which were paid in 2021. Other short-term payables of $0.45m (2020: $0.28m), were due principally to amounts due in respect of staff bonuses and the balance for sundry creditors.

 

Provisions

 

Under the Indian Payment of Gratuity Act 1972, employees i n the Group's Indian subsidiary with more than 5 years' service are eligible for the payment of a "gratuity" upon certain end of employment events - short-term provisions include amounts estimated in respect of such gratuity payments, as well as carried over leave payments and sundry expense provisions, in total $37,000 (2020: $79,000). The tax provision fell from $84,000 to $35,000 mainly due to an increase in the amount of tax deducted at source from our Indian subsidiary which reduced the year end tax creditor.

 

Long-term provisions of $0.20m (2020: $0.17m) relate solely to amounts estimated in respect of leave encashment and gratuity payments. Further details of such provisions are given in Note 26.

 

Contract liabilities

 

Contract liabilities represent customer payments received in advance of satisfying performance obligations, which are expected to be recognised as revenue in 2022 and beyond. Short-term contract liabilities remained broadly stable at $0.47m (2020: $0.50m) and long-term contract liabilities increased slightly to $0.28m (2020: $0.21m).

 

 

Statement of Cash Flows

 

Cash flow and financing

 

Cash generated by operations before tax payments amounted to $1.27m (2020: $2.60m), the reduction largely resulting from the effect of the trade receivables which were still outstanding at the year end referred to above and the payment of the commissions referred to in the note on creditors above.

 

In July we raised c. $4.3m net of expenses by way of an equity placing. This has supported the Group's expansion, both in terms of recruitment (in particular in sales), the repayment of debt (some $0.75m) and working capital generally.

 

The Group had closing gross cash of $3.3m (2020: $1.8m). Borrowings amounted to $0.75m (2020: $1.4m) excluding amounts relating to lease liabilities. These borrowings are to be repaid on an Equal Monthly Instalment ("EMI") basis over the next 2-5 years.

 

 

Summary

 

Our performance this year reflects the work done over the last few years in transitioning the Group towards long-term managed service contracts underpinned by a solid base of support revenue, and a more normal year of change request income. The Group starts the year with a material proportion of the expected total revenue for the year underpinned by recurring revenue already contracted and repeating revenue (i.e. change requests) under purchase orders. The Board therefore remains optimistic that the Group is on track to deliver a strong year of growth.

 

 

 

Nic Hellyer

Chief Financial Officer

 



 

Group Statement of Comprehensive Income 

For the year ended 31 December 2021

 



2021

2020


Note

$'000

$'000



(audited)

(audited)





Revenue

5

7,266

4,020

Cost of sales and provision of services


(2,206)

(1,710)



_______

_______

Gross profit


5,060

2,310





Administrative expenses

6

(4,831)

(3,647)



_______

_______

Adjusted operating profit/(loss)

 

229

(1,337)

Exceptional items

7

-

149

Amortisation of acquisition-related intangibles

18

(686)

(686)

Share-based payments

11

(32)

(32)



_______

_______

Operating (loss)


(489)

(1,906)





Finance income

12

44

64

Finance expense

13

(221)

(240)

 


_______

_______

(Loss) before taxation


(666)

(2,082)

Income tax expense

14

(181)

(375)

 


_______

_______

(LOSS) FOR THE YEAR ATTRIBUTABLE TO OWNERS OF THE PARENT


(847)

(2,457)





Other comprehensive income/(expense):




Items that may be reclassified subsequently to profit or loss:




Exchange differences on translation of foreign operations


(147)

31

Items that will not subsequently be reclassified to profit or loss:




Exchange differences on translation of equity balances


50

(55)



_______

_______

Other comprehensive income, net of tax


(97)

(24)





TOTAL COMPREHENSIVE INCOME FOR THE YEAR


(944)

(2,481)

 




 




Earnings per share




Attributable to the owners of the Pelatro Group ( basic and diluted)

15

(2.1)¢

(7.2)¢

 

 

 

 

 

 

 

 



 

Group Statement of Financial Position 

For the year ended 31 December 2021

 



2021

2020


Note

$'000

$'000

 


(audited)

(audited)

Assets




Non-current assets

 

 

 

Intangible assets

18

11,453

11,649

Tangible assets

19

982

1,218

Right-of-use assets

20

240

308

Deferred tax assets


14

16

Contract assets

21

606

751

Trade receivables

21

163

149



_______

_______



13,458

14,091

Current assets


 

 

Contract assets

21

555

609

Trade receivables

21

4,793

3,335

Other assets

22

315

485

Cash and cash equivalents

 

3,331

1,805



_______

_______



8,994

6,234





TOTAL ASSETS


22,452

20,325





Liabilities




Non-current liabilities




Borrowings

23

608

1,196

Lease liabilities

24

80

172

Contract liabilities

25

278

207

Long-term provisions

26

202

173



_______

_______



1,168

1,748

Current liabilities




Short term borrowings

23

136

244

Lease liabilities

24

188

174

Trade and other payables

25

603

1,093

Contract liabilities

25

469

495

Provisions

26

72

163



_______

_______

 


1,468

2,169

 




TOTAL LIABILITIES


2,636

3,917

 




NET ASSETS


19,816

16,408

 




Issued share capital and reserves attributable to owners of the parent




Share capital

27

1,501

1,212

Share premium

27

18,046

14,045

Other reserves


(639)

(583)

Retained earnings


908

1,734



_______

_______

TOTAL EQUITY


19,816

16,408

 



 

Group Statement of Cash Flows 

For the year ended 31 December 2021

 


2021

2020

 


$'000

$'000



(audited)

(audited)

Cash flows from operating activities




Profit/(loss) for the year


(847)

(2,457)

Adjustments for:




Income tax expense recognised in profit or loss


181

375

Finance income


(44)

(20)

Finance costs


221

232

Depreciation of tangible non-current assets


467

366

Profit on disposal of fixed assets


(10)

(10)

Amortisation of intangible non-current assets


2,814

2,122

Fair value adjustment on contingent consideration


-

(149)

Share-based payments


32

32

Foreign exchange gains/(losses)


9

25

 


_______

_______

Operating cash flows before movements in working capital


2,823

516

(Increase)/decrease in trade and other receivables


(1,271)

2,229

(Increase) in contract assets


206

(544)

Increase in trade and other payables


(532)

676

Increase/(decrease) in contract liabilities


45

(276)



_______

_______

Cash generated from operating activities


1,271

2,601





Income tax paid


(258)

(339)



_______

_______

Net cash generated from operating activities


1,013

2,262

 




Cash flows from investing activities


 

 

Development of intangible assets


(2,540)

(2,807)

Purchase of intangible assets


(42)

(9)

Acquisition of property, plant and equipment


(88)

(902)

Payment of earn out consideration relating to prior period acquisition


-

(851)



_______

_______

Net cash used in investing activities


(2,670)

(4,569)





Cash flows from financing activities




Proceeds from issue of ordinary shares, net of issue costs


4,290

2,589

Proceeds from borrowings


70

1,753

Repayment of borrowings


(748)

(919)

Repayments of principal on lease liabilities


(173)

(171)

Interest received


44

20

Interest paid


(203)

(185)

Interest expense on lease liabilities


(25)

(16)



_______

_______

Net cash generated by/(used in) financing activities


3,255

3,071

 




Net increase/(decrease) in cash and cash equivalents


1,598

764

Foreign exchange differences


(72)

(60)

Cash and cash equivalents at beginning of period


1,805

1,101



_______

_______

Cash and cash equivalents at end of period


3,331

1,805

 



 

Group Statement of Changes in Equity 

For the year ended 31 December 2021

 

 

Share capital

Share premium

Exchange reserve

Merger reserve

Share-based payments reserve

Retained profits

 

Total

 

$'000

$'000

$'000

$'000

$'000

$'000

 

$'000

Balance at 1 January 2020 as previously reported

1,065

11,603

(216)

(527)

100

4,177


16,202

(Loss) after taxation for the period

-

-

-

-

-

(2,457)


(2,457)

Share-based payments

-

-

-

-

98

-


98

Transfer on lapse of share options





(14)

14


-

Other comprehensive income:









Exchange differences

-

-

(24)

-

-

-


(24)

Transactions with owners:









Shares issued by Pelatro Plc for cash

147

2,620

-

-

-

-


2,767

Issue costs

-

(178)

-

-

-

-


(178)


_____

_____

_____

_____

_____

_____


_____

Balance at 31 December 2020

1,212

14,045

(240)

(527)

184

1,734

 

16,408

(Loss) after taxation for the period

-

-

-

-

-

(847)


(847)

Share-based payments

-

-

-

-

62

-


62

Transfer on lapse of share options





(21)

21


-

Other comprehensive income:









Exchange differences

-

-

(97)

-

-

-


(97)

Transactions with owners:









Shares issued by Pelatro Plc for cash

289

4,334

-

-

-

-


4,623

Issue costs

-

(333)

-

-

-

-


(333)


_____

_____

_____

_____

_____

_____


_____

Balance at 31 December 2021

1,501

18,046

(337)

(527)

225

908

 

19,816

 

 

 

 



Notes 

For the year ended 31 December 2021

 

As this summary announcement is extracted from the full financial statements, certain references may refer to notes which are not included herein, and the Notes section is not reproduced in full.

 

5  Revenue and segmental analysis

 

Revenue by type

 

At 31 December

2021

2020


$'000

$'000

Recurring software sales and services

3,456

1,528

Maintenance and support

1,334

1,323


_______

_______

Total recurring revenues

4,790

2,851

Change requests

1,958

426


_______

_______

Total repeating revenues

6,748

3,277

Software - new licenses

498

698

Consulting

20

45


_______

_______


7,266

4,020

 

Revenue by geography

 

The Group recognises revenue in seven geographical regions based on the location of customers, as set out in the following table:

 

At 31 December

2021

2020


$'000

$'000




Caribbean

130

145

Central Asia

443

175

Eastern Europe

426

168

North Africa

104

64

South Asia

2,656

1,096

South East Asia

3,407

2,372

Sub-Saharan Africa

100

-


_______

_______


7,266

4,020

 

Customer concentration

 

The Group has two customers representing individually over 10% of revenue each and in aggregate approximately 38% of total revenue at $2.73m (2020: three customers, approximately 53% of total revenue at $2.14m). The two customers accounted for revenue of $1.63m and $1.10m (2020: $0.89m, $0.63m and $0.62m).

 

Remaining performance obligations

 

There are certain software support, professional service, maintenance and licences contracts that have been entered into for which both:

 

• the original contract period was greater than 12 months; and

 

• the Group's right to consideration does not correspond directly with performance.

 

The amount of revenue that will be recognised in future periods on these contracts when those remaining performance obligations will be satisfied is shown below.


Year to 31 December


2022

2023

2024-7


$'000

$'000

$'000

Revenue expected to be recognised on software and service contracts

449

314

320

 

Comparative figures for the year ended 31 December 2020 were as follows:


Year to 31 December


2021

2022

2023-6


$'000

$'000

$'000

Revenue expected to be recognised on software and service contracts

579

394

442

 

Costs of obtaining and fulfilling contracts of $0.12m have been capitalised in 2021 (net of amortisation against revenue recognised in respect of those contracts) (2020: $0.59m).

 

 

6  Operating expenses

 

Profit for the year has been arrived at after charging:


2021

2020


$'000

$'000




Amortisation of intangible non-current assets

2,814

2,122

Depreciation of tangible non-current assets

413

298

(Profit)/loss on disposal of Right to Use assets

(10)

(10)

Staff costs (see note 9)

2,865

1,787

Auditor's remuneration (see note 8)

47

41

Short-term lease expenses

35

23

Realised foreign exchange (gains)/losses

17

3

 

 

7  Non-GAAP profit measures and exceptional items

 

Reconciliation of operating profit to adjusted earnings before interest, taxation, depreciation and amortisation ("EBITDA")

 

Year to 31 December

2021

2020


$'000

$'000




Operating profit/(loss)

(489)

(1,906)

Adjusted for:



Amortisation and depreciation

3,227

2,420


_______

_______

EBITDA

2,738

514

Revenue recognised as interest under IFRS 15

38

44

Expensed share-based payments

32

32

Exceptional items:



 - gain on adjustment of contingent liability

-

(149)


_______

_______

Adjusted EBITDA

2,808

441

 

The calculation of adjusted earnings per share is shown in Note 15.

 

 

8  Auditor's remuneration

 

Year to 31 December

2021

2020


$'000

$'000

Audit of the financial statements of Pelatro Plc

47

41

Amounts receivable by auditor in respect of:



Tax compliance

1

4


_______

_______


48

45

 

 

9  Staff costs

 

Year to 31 December

2021

2020


$'000

$'000




Wages and salaries

  5,256

  4,410

Social security contributions

80

83

Less: amounts capitalised as intangible assets

(2,471)

(2,706)


_______

_______


2,865

1,787

 

The average number of persons employed by the Company during the period was:

 

Year to 31 December

2021

2020




Sales

3

4

Software development

98

96

Support

113

48

Marketing

3

3

Administration

18

15


_______

_______


235

166

 

 



 

10  Directors' remuneration and transactions

 

The Directors' emoluments in the year ended 31 December 2021 were:

 

 

Basic

salary

Bonus

Benefits

in kind

Share-based payments

Pension

 

Total

 

Total

 

2021

2021

2021

2021

2021

2021

2020

 

$'000

$'000

$'000

$'000

$'000

$'000

$'000

Executive Directors








N. Hellyer

87

21

10

1

3

122

137

S. Menon

201

57

21

-

-

279

220

S. Yezhuvath

201

57

14

-

-

272

207

Non-Executive Directors






 


R. Day

66

-

-

-

2

68

72

P. Verkade

41

-

-

-

-

41

39


_______

______

______

______

_______

_______

_______

 

596

135

45

1

5

782

675

 

The remuneration of the executive Directors is decided by the Remuneration Committee. Save as disclosed above no Director had a material interest in any contract of significance with the Group in either year.

 

 

11  Share-based payments

 

A charge of $32,000 (net of amounts capitalised of $30,000) (2020: $32,000) has been recognised during the year for share-based payments over the vesting period. This share-based payment expense comprises the charge in the current period relating to the expensing of the fair value of (a) 1,323,500 options granted under the Plan (net of lapsed or forfeited options) and (b) the 33,000 options (net of lapses) issued at the time of the Company' IPO.

 

Movements in the number of share options outstanding and their related weighted average exercise prices are as follows:

 

 

No. of options

Weighted average exercise price


2021

2020

2021

2020

Outstanding at the beginning of the year

1,505,500

1,631,500

72.7p

72.7p

Granted during the year

-

-

-

-

Forfeited/cancelled during the year

(149,000)

(126,000)

73.0p

73.0p


_______

_______



Outstanding at the end of the year

1,356,500

1,505,500

72.7p

72.7p

 

Outstanding options are exercisable at prices between 62.5p and 73p and have a weighted average remaining contractual life of 6.8 years.

 

 

12  Finance income

 


2021

2020


$'000

$'000




Interest receivable on interest-bearing deposits

6

20

Notional interest accruing on contracts with a significant financing component

38

44


_______

_______

Total finance income

44

64

 

 

13  Finance expense

 


2021

2020


$'000

$'000




Interest and finance charges paid or payable on borrowings

202

198

Interest on lease liabilities under IFRS 16

25

31

Less: amounts capitalised as intangible assets

(6)

(14)

Acquisition-related financing expense (unwinding of discount on financial liabilities)

-

25


_______

_______

Total finance expense

221

240

 

An element of interest on lease liabilities is deemed to be directly attributable overheads for the purposes of capitalising relevant expenditure on developing intangible assets (see Note 18).

 

 

14  Taxation

 

Tax on profit on ordinary activities

 

Year to 31 December

2021

2020


$'000

$'000

Current tax



UK corporation tax charge/(credit) on profit for the current year

-

-

Overseas income tax charge/(credit)

232

321

Adjustments in respect of prior periods

(42)

(18)


_______

_______

Total current income tax

190

303

 



Deferred tax



Reversal/(recognition) of deferred tax asset

(9)

72


_______

_______

Total deferred income tax

(9)

72




Total income tax expense recognised in the year

181

375

 

 

Deferred tax

Recognised deferred tax asset


2021

2020


$'000

$'000




At 1 January 2021

16

63

Recognised in profit and loss

(2)

(47)

 

_______

_______

At 31 December 2021

14

16




Comprising:



Tax losses

14

16


_______

_______


14

16

 

Deferred income tax assets have only been recognised to the extent that it is considered probable that they can be recovered against future taxable profits based on profit forecasts for the foreseeable future. The deferred income tax assets at 31 December 2021 above are expected to be utilised in the next two years.

 

Recognised deferred tax liability


2021

2020


$'000

$'000




At 1 January 2021

24

-

Recognised in profit and loss

(11)

24

 

_______

_______

At 31 December 2021

13

24




Comprising:



Timing differences

13

24


_______

_______


13

24

 

 

15  Earnings

 

Reported earnings per share

 

Basic earnings per share ("EPS") amounts are calculated by dividing net profit or loss for the year attributable to owners of the Company by the weighted average number of ordinary shares outstanding during the year.

 

The Group has one category of security potentially dilutive to ordinary shares in issue, being those share options granted to employees where the exercise price (plus the remaining expected charge to profit under IFRS 2) is less than the average price of the Company's ordinary shares during the period in issue. No dilution arose in the year as the exercise price was above the average share price for the year.

 

The following reflects the earnings and share data used in the basic earnings per share computations:

 

Year to 31 December

2021

2020


$'000

$'000

Profit/(loss) attributable to equity holders of the parent:



Profit/(loss) attributable to ordinary equity holders of the parent for basic earnings

(847)

(2,457)




Weighted average number of ordinary shares in issue

41,153,537

34,136,617




Basic earnings/(loss) per share attributable to shareholders

(2.1)¢

(7.2)¢

 

Adjusted earnings per share

 

Adjusted earnings per share is calculated as follows:


2021

2020


$'000

$'000

Profit/(loss) attributable to ordinary equity holders of the parent for basic earnings

(847)

(2,457)

Adjusting items:



 - exceptional items (see note 7}

-

(149)

 - share-based payments

32

32

 - finance expense on liabilities relating to contingent consideration

-

25

- amortisation of acquisition-related intangibles

686

686

 - prior year adjustments to tax charge

(42)

(18)


_______

_______

Adjusted earnings attributable to owners of the Parent

(171)

(1,881)




Weighted number of ordinary shares in issue

41,153,537

34,136,617




Adjusted earnings/(loss) per share attributable to shareholders

(0.4)¢

(5.5)¢

 

 

18  Intangible assets

 

Intangible assets comprise capitalised development costs (in relation to internally generated software and software acquired through business combinations), software acquired from third parties for use in the business, patents, customer relationships and goodwill.

 

An analysis of goodwill and other intangible assets is as follows:

 

2021

 

Development costs

Third party software

Patents

Customer relationships

Goodwill

Total


$'000

$'000

$'000

$'000

$'000

$'000

Cost







At 1 January 2021

9,263

110

27

6,862

470

16,732

Additions

2,576

12

30

-

-

2,618

Foreign exchange

-

(2)

-

-

-

(2)


_______

_______

_______

_______

_______

_______

At 31 December 2021

11,839

120

57

6,862

470

19,348







 

Amortisation






 

At 1 January 2021

(3,373)

(52)

-

(1,658)

-

(5,083)

Charge for the year

(2,105)

(21)

(2)

(686)

-

(2,814)

Foreign exchange

-

2

-

-

-

2


_______

_______

_______

_______

_______

_______

At 31 December 2021

(5,478)

(71)

(2)

(2,344)

-

(7,895)








Net carrying amount







At 31 December 2021

6,361

49

55

4,518

470

11,453

 






 

At 31 December 2020

5,890

58

27

5,204

470

11,649

 



 

2020

 

Development costs

Third party software

Patents

Customer relationships

Goodwill

Total


$'000

$'000

$'000

$'000

$'000

$'000

Cost







At 1 January 2020

6,391

108

23

6,862

470

13,854

Additions

2,872

4

4

-

-

2,880

Foreign exchange

-

(2)

-

-

-

(2)


_______

_______

_______

_______

_______

_______

At 31 December 2020

9,263

110

27

6,862

470

16,732







 

Amortisation






 

At 1 January 2020

(1,957)

(34)

-

(972)

-

(2,963)

Charge for the year

(1,416)

(20)

-

(686)

-

(2,122)

Foreign exchange

-

2

-

-

-

2


_______

_______

_______

_______

_______

_______

At 31 December 2020

(3,373)

(52)

-

(1,658)

-

(5,083)








Net carrying amount







At 31 December 2020

5,890

58

27

5,204

470

11,649

 






 

At 31 December 2019

4,434

74

23

5,890

470

10,891

 

 

19  Tangible assets

 

2021

Leasehold improvements

Computer equipment

Office equipment

Vehicles

 

Total


$'000

$'000

$'000

$'000

$'000

Cost






At 1 January 2021

131

1,084

59

305

1,579

Additions

-

88

-

-

88

Foreign exchange differences

(2)

(21)

(1)

(6)

(30)


_______

_______

_______

_______

_______

At 31 December 2021

129

1,151

58

299

1,637







Depreciation






At 1 January 2021

(24)

(222)

(20)

(95)

(361)

Charge for the year

(18)

(238)

(11)

(36)

(303)

Foreign exchange differences

1

6

-

2

9


_______

_______

_______

_______

_______

At 31 December 2021

(41)

(454)

(31)

(129)

(655)







Net carrying amount






At 31 December 2021

88

697

27

170

982

 






At 31 December 2020

107

862

39

210

1,218

 



 

 

2020

Leasehold improvements

Computer equipment

Office equipment

Vehicles

 

Total


$'000

$'000

$'000

$'000

$'000

Cost






At 1 January 2020

109

197

59

312

677

Additions

24

877

1

-

902

Foreign exchange differences

(2)

10

(1)

(7)

-


_______

_______

_______

_______

_______

At 31 December 2020

131

1,084

59

305

1,579







Depreciation






At 1 January 2020

(7)

(87)

(9)

(59)

(162)

Charge for the year

(17)

(134)

(11)

(36)

(198)

Foreign exchange differences

-

(1)

-

-

(1)


_______

_______

_______

_______

_______

At 31 December 2020

(24)

(222)

(20)

(95)

(361)







Net carrying amount






At 31 December 2020

107

862

39

210

1,218

 






At 31 December 2019

102

110

50

253

515

 

 

 

20  Right-of-use assets

 

Right-of-use assets comprise leases over office buildings and vehicles as follows:

 

2021

Office

buildings

Vehicles

Total


$'000

$'000

$'000

Cost



 

At 1 January 2021

661

32

693

Additions in respect of new leases

112

-

112

Disposals in respect of leases terminated

(10)

(32)

(42)

Effects of foreign exchange movements

(13)

-

(13)


_______

_______

_______

At 31 December 2021

750

-

750




 

Depreciation



 

At 1 January 2021

(355)

(30)

(385)

Charge for the period

(164)

(2)

(166)

Eliminated on leases terminated

-

32

32

Effects of foreign exchange movements

9

-

9


_______

_______

_______

At 31 December 2021

(510)

-

(510)




 

Net carrying amount



 

At 31 December 2021

240

-

240

 

 

 

 

At 31 December 2020

306

2

308

 



 

 

2020

Office

buildings

Vehicles

Total


$'000

$'000

$'000

Cost



 

At 1 January 2020

690

31

721

Additions in respect of new leases

227

-

227

Disposals in respect of leases terminated

(231)

-

(231)

Effects of foreign exchange movements

(25)

1

(24)


_______

_______

_______

At 31 December 2020

661

32

693




 

Depreciation



 

At 1 January 2020

(368)

(14)

(382)

Charge for the period

(153)

(14)

(167)

Eliminated on leases terminated

157

-

157

Effects of foreign exchange movements

9

(2)

7


_______

_______

_______

At 31 December 2020

(355)

(30)

(385)




 

Net carrying amount



 

At 31 December 2020

306

2

308

 

 

 

 

At 31 December 2019

322

17

339

 

 

21  Trade and other receivables and contract assets

 

Contract assets

 

Due after one year

2021

2020

 

$'000

$'000

At 1 January

751

519

Contract assets recognised in the period

195

441

Transfer to current contract assets

(340)

(209)


_______

_______

At 31 December

606

751

 

 

Due within one year

2021

2020

 

$'000

$'000

At 1 January

609

293

Contract assets recognised in the period, net of releases to receivables or cash, or amortisation to profit or loss

(394)

107

Transfer from non-current contract assets

340

209


_______

_______

At 31 December

555

609

 

 

Contract assets are comprised as follows:

 

Due after one year

2021

2020

 

$'000

$'000

Contract assets relating to revenue

227

311

Contract fulfilment assets

379

440


_______

_______

 

606

751

 

 

Due within one year

2021

2020

 

$'000

$'000

Contract assets relating to revenue

375

457

Contract fulfilment assets

180

152


_______

_______

 

555

609

 

The Group recognises impairments under IFRS 9 for relevant classes of assets. The Group thus reviews the amount of expected credit loss associated with its trade receivables based on forward looking estimates that take into account current and forecast credit conditions as opposed to relying on past historical default rates. In the absence of any historic credit losses and the expectation of no specific losses in the foreseeable future, the Directors assess a hypothetical likely default amount by applying a percentage "probability of default" to the receivables balance, such probability being related to the underlying credit rating of the customer or country of origin. Furthermore, taking into account the time value of money when applied to contracts assets (which may unwind over a period of years following their initial recognition), a loss allowance for expected credit losses has been recorded as follows:

 

 

2021

2020


$'000

$'000

Loss allowance at 1 January

37

29

Increase in loss allowance

52

8


_______

_______

Loss allowance at 31 December

89

37

 

The loss allowance is comprised as follows:

 

 

2021

2020


$'000

$'000

On trade receivables

75

30

On contract assets

14

7


_______

_______

Loss allowance at 31 December

89

37

 

The largest individual counterparty to a receivable included in trade and other receivables at 31 December 2021 was $1.14m (of which some $0.68m related to unbilled revenue) (2020: $0.56m). Based on invoiced receivables, the largest individual counterparty owed the Group $0.52m (2020: $0.20m). The increase in loss allowance is due almost entirely to two individually significant receivables balances (other than the largest) from customers located in a jurisdiction with a notionally higher risk of default, and the weighting of the largest within the loss allowance calculation. Other than these, the Group's customers are spread across a broad range of geographies, and approximately $1.5m has been received from customers since the reporting date.

 

 



 

22  Other assets

 

At 31 December

2021

2020


$'000

$'000

Prepayments

146

130

Deposits

77

80

Other assets (including withholding tax, GST and VAT refunds)

92

275


_______

_______

Total other assets

315

485

 

 

23  Loans and borrowings

 

Loans and borrowings comprise:

 

At 31 December

2021

2020


$'000

$'000

Non-current liabilities



Secured term loans

23

277

Unsecured borrowings

585

919

 

_______

_______


608

1,196

Current liabilities



Current portion of term loans

11

99

Unsecured borrowings

125

145


_______

_______


136

244




Total loans and borrowings

744

1,440

 

The Group has two term loans, in its operating subsidiary in India and denominated in INR, with interest rates between 10% and 15.5% (in INR), repayable between 5 and 6 years from their inception, between June 2023 and September 2024.

 

 

24  Lease liabilities

 

Lease liabilities comprise liabilities arising from the committed and expected payments on leases over office buildings and vehicles.

 

2021

 

Amounts due in more than one year

Office

buildings

Vehicles

Total


$'000

$'000

$'000

At 1 January 2021

172

-

172

Liabilities taken on in the period

24

-

24

Liabilities (disposed of) in the period

(10)

-

(10)

Transfer from long-term to short-term

(103)

-

(103)

Effects of foreign exchange movements

(3)

-

(3)


_______

_______

_______

At 31 December 2021

80

-

80

 



 

 

Amounts due in less than one year

Office

buildings

Vehicles

Total


$'000

$'000

$'000

At 1 January 2021

174

-

174

Liabilities taken on in the period

89

-

89

Liabilities (disposed of) in the period

(1)

-

(1)

Repayments of principal

(171)

-

(171)

Transfer to short-term from long-term

103

-

103

Effects of foreign exchange movements

(6)

-

(6)


_______

_______

_______

At 31 December 2021

188

-

188

 

 

2020

 

Amounts due in more than one year

Office

buildings

Vehicles

Total


$'000

$'000

$'000

At 1 January 2020

186

1

187

Liabilities taken on in the period

163

-

163

Liabilities (disposed of) in the period

(28)

-

(28)

Transfer from long-term to short-term

(140)

(1)

(141)

Effects of foreign exchange movements

(9)

-

(9)


_______

_______

_______

At 31 December 2020

172

-

172

 

 

Amounts due in less than one year

Office

buildings

Vehicles

Total


$'000

$'000

$'000

At 1 January 2020

193

12

205

Liabilities taken on in the period

69

-

69

Liabilities (disposed of) in the period

(56)

-

(56)

Repayments of principal

(164)

(12)

(176)

Transfer to short-term from long-term

140

1

141

Effects of foreign exchange movements

(8)

(1)

(9)


_______

_______

_______

At 31 December 2020

174

-

174

 

PSPL, the Group's main operating subsidiary, has entered into various leases over office space in Bangalore and Mumbai, which are now all out of their initial commitment terms on notice periods of typically 2-3 months with rollover options. The Group also has a lease on office space in Nizhny Novgorod in Russia.  Now the impact of COVID-19 is diminishing and working from home flexibility is becoming more defined, the Group intends to review its office accommodation with a view to consolidating its principal office accommodation from the beginning of 2023.

 

 



 

25  Trade and other payables and contract liabilities

 

At 31 December

2021

2020


$'000

$'000

Due within one year



Trade payables

152

810

Other payables

451

283


_______

_______

Total trade and other payables

603

1,093

 

Trade payables include amounts due in respect of sales commissions due to sales agents which is payable in less than one year. Other payables comprise principally amounts due in respect of staff bonuses declared for December and paid in January.

 

Contract liabilities

 

Contract liabilities represent consideration received in respect of unsatisfied performance obligations. Changes to the Group's contract liabilities are attributable solely to the satisfaction of performance obligations.

 

At 31 December

2021

2020


$'000

$'000

Due after one year



Contract liabilities at 1 January

207

274

Contract liabilities recognised in the period

152

20

Transfers to short-term liabilities

(81)

(87)


_______

_______

Contract liabilities at 31 December

278

207

 

 

At 31 December

2021

2020


$'000

$'000

Due within one year



Contract liabilities at 1 January

495

665

Contract liabilities recognised/(released to revenue) in the period

(107)

(257)

Transfers from long-term liabilities

81

87


_______

_______

Contract liabilities at 31 December

469

495

 

 



 

26  Provisions

 

At 31 December

2021

2020


$'000

$'000

Due after one year



Employee gratuities

141

116

Leave encashment

61

57


_______

_______


202

173

 

At 31 December

2021

2020


$'000

$'000

Due within one year



Employee gratuities

7

13

Leave encashment

30

24

Other provisions (including tax)

35

126


_______

_______


72

163

 

Other provisions comprise tax and other expenses.

 

Under the Indian Payment of Gratuity Act 1972, employees with more than 5 years' service are eligible for the payment of a "gratuity" upon certain end of employment events, including retirement, resignation, death and termination or redundancy. The calculation of the gratuity due is based on the last drawn salary and number of years of service. The potential liability arising from these requirements is calculated by third party actuaries based on employee profiles, their completed number of years in the organization, their age, salary and also on the probability of termination of employment, and a provision made accordingly.

 

Under the terms of their employment, employees are eligible to carry forward 30 "earned leaves" (EL) to the next calendar year. Any EL balance over and above this is paid in cash by March the following year, hence resulting in a long-term provision.

 

 

27  Share capital and reserves

 

Share capital and share premium

 

Ordinary shares of 2.5p each (issued and fully paid)

$'000

Number

At 1 January 2020

1,065

32,532,431

Issued for cash during the year

147

4,500,000


_______

_______

At 31 December 2020

1,212

37,032,431

Issued for cash during the year

289

8,375,000


_______

_______

At 31 December 2021

1,501

45,407,431

 

On 2 and 5 July the Company issued a further 8,375,000 2.5 pence Ordinary shares at a price of 40.0 pence per share by way of a placing to institutional and other investors. The Company incurred incremental costs totalling $333,000 in respect of the Placing. IAS 32 Financial Instruments: Presentation requires the costs of issuing new shares to be charged against the share premium account. Management reviewed the incremental costs to identify those solely incurred in issuing new shares, those incurred in connection with the entire share capital, and those not associated with issuing new shares. All of the costs relating to the Placing were deemed to relate directly to the issue of new shares and thus resulted in a debit to share premium of $333,000.

 

 

30  Capital commitments and contingent liabilities

 

Other than as disclosed above, as at 31 December 2021 the Group had no material capital commitments (2020: nil) nor any contingent liabilities (2020: nil).

 

 

31  Events after the reporting date

 

T here have been no events subsequent to the reporting date which would have a material impact on the financial statements.



 

General

 

Audited accounts

 

The financial information set out above does not comprise the Group or the Company's statutory accounts. The Annual Report and Financial Statements for the year ended 31 December 2020 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statements ("Annual Report") for the year ended 31 December 2020 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

 

The Independent Auditors' Report on the Annual Report for the year ended 31 December 2021 is unqualified, does not draw attention to any matters by way of emphasis, and does not contain a statement under 498(2) or 498(3) of the Companies Act 2006.  The Annual Report will be filed with the Registrar of Companies following the annual general meeting.

 

The Annual Report, together with a notice of the annual general meeting, are expected to be made available to shareholders in June 2021.  Copies will also be available on the Company's website (www.pelatro.com) and from the Company's registered office at 49 Queen Victoria Street, London EC4N 4SA from that date.

 

As this summary announcement is extracted from the full financial statements, certain references may refer to notes which are not included herein, and the Notes section is not reproduced in full.

 

Principal risks and uncertainties

 

The principal risks and uncertainties facing the Group together with actions being taken to mitigate them and future potential items for consideration will be set out in the Strategic Report section of the Annual Financial Report 2021.

 

Presentation of figures

 

Figures are rounded to the nearest $0.1m, $0.01m or $'000 as the case may be. Percentage increases or decreases stated above are based on the figures as rounded. Minor differences may arise in tabulation and figures presented elsewhere due to rounding differences.

 

 

This announcement was approved by the Board of Directors on 20 May 2022.

 

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Pelatro (PTRO)
UK 100

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