REG - IXICO plc - Half-year Report
21/05/2024 07:00
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RNS Number : 1792P IXICO plc 21 May 2024
21 May 2024
IXICO plc
("IXICO", the "Company" or the "Group")
Half yearly report to 31 March 2024
IXICO plc (AIM: IXI), the precision analytics company delivering intelligent
insights in neuroscience, announces its unaudited interim results for the six
months ended 31 March 2024 ('H1 2024' or the 'period').
Operational developments
· As outlined in the Group's trading update issued on 13 March
2024, the H1 2024 revenue performance has been challenging albeit consistent
with the slow-down in capital markets funding of the biotech market;
· We are seeing a turn in market conditions, and subsequent to the
half-year end have signed new contracts and have received notifications of
award of further contracts following competitive tenders, which are now
subject to contracting;
· Order book of £12.7 million at 31 March 2024 (H1 2023: £13.3m)
following the signing of contracts totalling £6.4m across the last twelve
months;
· Since the business restructured during H1 2024, we have delivered
£1.1m cost efficiencies over the past twelve months that will be more visible
in H2 2024; and
· Following the CEO's decision to retire, the Group has
substantially progressed a succession process.
Financial developments
· Revenues of £2.5 million for the six months to 31 March 2024 (H1
2023: £3.2m);
· Gross margin at 40.2% (H1 2023: 46.1%);
· Loss before interest, taxation, depreciation and amortisation
('EBITDA') of £1.3 million (H1 2023: £0.6m);
· EBITDA loss materially impacted by reduced capitalisation of
platform development costs for the six months to 31 March 2024 which totalled
£0.2m (H1 2023: £0.8m). This reduction reflects the successful completion
of platform validation;
· £2.5 million cash as at 31 March 2024 (H1 2023: £5.0m);
· Net assets of £10.0 million (H1 2023: £11.9m); and
· Loss per share of 2.92p (H1 2023: 1.50p).
Giulio Cerroni, CEO of IXICO, commented:
"Across H1 2024, we were aware that revenues were going to be challenged due
to market dynamics and therefore reduced our cost base in preparation for
this. In parallel we have been laser focussed on our sales pipeline
resulting in a much strengthened outlook for contract bookings in H2 2024. As
part of the cost restructure, we have emphasised our "lead with science"
approach and I am delighted to see that this is bearing fruit.
More broadly, we remain confident of the market opportunity and our "Precision
in Neuroscience" strategy and expect to see this deliver increased value in
the coming periods."
A recording of the results presentation will be made available on the Group's
website here: https://ixico.com/investors/company-information/investor-videos/
(https://ixico.com/investors/company-information/investor-videos/)
The information contained within this announcement is deemed by the Company to
constitute inside information pursuant to Article 7 of EU Regulation 596/2014
as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 as amended. Upon the publication of this announcement
via a Regulatory Information Service, this inside information is now
considered to be in the public domain.
For further information please contact:
IXICO plc +44 (0)20 3763 7499
Giulio Cerroni, Chief Executive Officer
Grant Nash, Chief Financial Officer
Cavendish Capital Markets Limited (Nominated adviser and sole broker) +44 (0)20 7397 8900
Giles Balleny / Dan Hodkinson (Corporate Finance)
Nigel Birks/Harriet Ward (Corporate Broking)
Michael Johnson / Tamar Cranford-Smith (Sales)
About IXICO
IXICO is dedicated to delivering insights in neuroscience to help transform
the advancement of investigational therapies for neurological diseases, such
as Huntington's disease, Parkinson's disease and Alzheimer's disease. The
Company's purpose is to advance medicine and human health by turning data into
clinically meaningful information, providing valuable new insights in
neuroscience by supporting pharmaceutical companies across all phases of CNS
clinical research. IXICO's goal is to be a leading advocate of artificial
intelligence in medical image analysis.
IXICO has developed and deployed breakthrough data analytics, at scale,
through its remote access technology platform, to improve the return on
investment in drug development and reduce risk and uncertainty in clinical
trials for the Company's pharmaceutical clients.
More information is available on www.IXICO.com (http://www.IXICO.com)
CHIEF EXECUTIVE OFFICER'S STATEMENT
Statement from Giulio Cerroni
Across the past six months, we have delivered revenues of £2.5 million (H1
2023: £3.2m) and, as at 31 March 2024, our order book totalled £12.7 million
(H1 2023: £13.3m). These figures reflect the markets of the past twelve
months, where the biopharmaceutical industry (and in particular biotechs) have
seen tight capital markets and soaring inflation impact their clinical
development plans.
The continuation of these challenges as we entered 2024, meant that we
adjusted our forecasts for the year (as announced on 13 March 2024) reflecting
that we are seeing positive signs of market recovery, however the associated
timelines of certain contracts mean we anticipate revenues across the second
half of the year to reflect only marginal growth on the past six months. A
marked uptick in receipt of client requests for proposals (RFPs) and
information (RFIs) over the last couple of months provides confidence that the
market is turning favourably.
During the period we undertook a cost reduction exercise within the business
and, importantly, realigned the way that the organisational structure reflects
our strategy. As a niche neuroscience specialist, the importance of
effectively communicating our scientific credentials and the differential
value of our analytics is critical. Consequently, we have developed a
"Leading with Science" focus to our "Precision in Neuroscience" strategy.
This reflects that our scientists, all of whom are experts in their respective
neurological fields, and our scientific assets are assets not easily
replicated by our competitors. Ensuring this value is communicated
effectively is what delivers new business opportunities. Consequent to this,
we have realigned our sales and marketing team alongside our science team
under the leadership of our CSO, Robin Wolz. This has generated an increase
in productivity and effectiveness in our sales process, with scientific
engagement being brought to clients at an earlier stage. The signs of the
traction this will bring are positive.
In addition, we have moved the operational, technology and business support
functions under the leadership of our CFO, Grant Nash. This reflects the
continued focus of the business in delivering the very best service in the
most efficient manner. Closely aligning these teams ensures effective and
consistent management which, through the close working relationship between
CFO and CSO, provides a seamless and fully aligned approach to delivering
quality services, efficiently.
This period has also seen the full validation of our next generation
TrialTracker platform. This major investment for the Group which was a key
objective of the Company's capital raise in 2018, that puts IXICO's technology
platform at the forefront of global image management capabilities. Partnered
with Microsoft, and adopting Microsoft Azure based technologies, this platform
provides a regulatory compliant, end-to-end, image capture, management, and
analysis platform to support global clinical development programs. The value
built within this extends well beyond IXICO's current capability to utilise
and provides intellectual property likely to be highly attractive to both
clients and other industry players.
Strategically, we continue to see traction in our "Precision in Neuroscience"
strategy. Recent partnerships with Imeka Solutions Inc. (as announced on 3
April 2024) and Life Molecular Imaging (as announced on 15 April 2024) reflect
a further broadening of our scientific and operational offerings. Further,
the successful award of grant funding to develop screening capabilities to
automate patient eligibility for Alzheimer's disease ('AD') trials (and
potentially within the clinical diagnostic market) provide further validation
of the value being built within the Group. Whilst our recent financial
performance has been challenging, the Group represents a longer-term value
opportunity with visibility in short and medium-term trial revenues
contributing towards a wider value opportunity that will be delivered via the
Group's differentiated technology and scientific capabilities in a broadening
and rapidly growing market.
Financial Review
KPI H1-24 H1-23 Movement FY23
Revenue £2.5m £3.2m (£0.7m) £6.7m
Gross profit £1.0m £1.5m (£0.5m) £3.3m
Gross margin 40.2% 46.1% (5.9%) 49.1%
EBITDA loss (£1.3m) (£0.6m) (£0.7m) (£1.7m)
Operating loss (£1.6m) (£0.9m) (£0.7m) (£1.4m)
Loss per share (2.92p) (1.50p) (1.42p) (2.44p)
Net assets £10.0m £11.9m (£1.9m) £11.4m
Order book(1) £12.7m £13.3m (£0.6m) £14.8m
Cash £2.5m £5.0m (£2.5m) £4.0m
Non-current asset investments £0.3m £0.9m (£0.6m) £1.9m
(1) Order book is contracted but not yet recognised revenue adjusted down to
reflect the Company's best estimate of delivery.
Revenue
· The Group reports revenue of £2.5 million (H1 2023: £3.2m)
representing a 21% decrease on the prior period.
· This revenue reduction was caused by a weakening in new contract
bookings across FY23 and the first six months of FY24. This reflects
challenges being seen across the biopharmaceutical industry (and biotech in
particular) created by tight capital markets and consequential challenges to
raising capital. This has resulted in delays and cancellations of planned
new trials.
· The Group anticipates a stronger second half of the financial
year with increased bookings expected and consequent development of the order
book. Due to the lead times of booking new contracts to revenue generation,
this is unlikely to drive a significant improvement in revenues for H2 2024
but will benefit later periods.
Gross profit and margin
· Gross profit for H1 2024 is £1.0 million (H1 2023: £1.5m) with
a gross margin of 40.2% (H1 2023: 46.1%).
· The year-on-year absolute change is reflective of reduced revenue
in the period and the margin reflective of the relatively fixed cost nature of
IXICO's costs of delivery.
· The Group completed a reduction of headcount at the start of FY24
which has reduced the impact of lower revenues on the gross margin. This
cost reduction will not be fully visible in IXICO's financials until the H2
2024.
Operating expenses and capital expenditure
· The Group's operating expenditure for H1 2024 is £2.9 million
(H1 2023: £2.6m)
· Careful management of operating expenditure, including the
reduction of headcount in Q1-24, has been offset by the associated one-time
costs of this headcount reduction, the impact of lower levels of cost
capitalisation coterminous with the availability of IXICO's next generation
TrialTracker platform (resulting in costs previously being capitalised to the
balance sheet now being expensed through operating expenses) and an impact of
cost inflation compared to the prior year.
· Capitalised R&D expenditure relating to staff costs in the
period totalled £0.2 million (H1 2023: £0.8m).
EBITDA and operating loss
· The Group has reported an EBITDA loss of £1.3 million (H1 2023:
£0.6m) and operating loss of £1.6m (H1 2023: £0.9m). Both reflect the
reduced revenues across the period whilst the Group's reduction in employee
numbers has been offset by reduced cost capitalisation and inflation.
H1-24 H1-23
£000 £000
Loss attributable to equity holders (1,412) (725)
Depreciation of tangible assets 140 202
Amortisation of intangible assets 101 103
Interest on lease liabilities 11 15
Interest on cash held at bank (55) (44)
Taxation (131) (159)
EBITDA (1,346) (608)
Order book
· The Group's order book totalled £12.7 million at 31 March 2024
(H1 2023: £13.3m). Across the last twelve months the order book has
decreased by £0.6 million reflecting £6.4 million of new contract wins,
offset by £6.0 million revenues recognised and £1.0 million of contract
value reductions reflecting the cancellation or descope of contracts and other
minor adjustments including foreign exchange losses.
Cash
· The Group had a cash balance of £2.5 million at 31 March 2024
(H1 2023: £5.0m). Cash outflow in the six months to 31 March 2024 totalled
£1.5 million (H1 2023: £0.7m). This period has included a process to
reduce employee numbers and the level of capital investment.
· The Group has continued to closely monitor its cash position in
light of the more challenging trading.
Net Assets
· The Group reports net assets at 31 March 2024 of £10.0 million
(H1 2023: £11.9m). This reflects the increase of the Group's non-current
asset position to £6.8 million (H1 2023: £6.0m) offset by a reducing working
capital to £3.5 million (H1 2023: £6.3m).
Consolidated Statement of Comprehensive Income
For the six months ended 31 March 2024 - unaudited
31-Mar-24 31-Mar-23 30-Sep-23
6 months 6 months 12 months
Unaudited Unaudited Audited
Notes £000 £000 £000
Revenue 2,538 3,203 6,665
Cost of sales (1,518) (1,727) (3,395)
Gross profit 1,020 1,476 3,270
Other income 256 175 393
Operating expenses
Research and development expenses (623) (464) (925)
Sales and marketing expenses (787) (617) (1,321)
General and administrative expenses (1,454) (1,483) (2,854)
Total operating expenses (2,864) (2,564) (5,100)
Operating loss (1,588) (913) (1,437)
Finance income 55 44 105
Finance expense (11) (15) (29)
Loss on ordinary activities before taxation (1,544) (884) (1,361)
Taxation 131 159 183
Loss attributable to equity holders for the period (1,413) (725) (1,178)
Other comprehensive income / (expense):
Items that will be reclassified subsequently to profit or loss
Foreign exchange translation differences - (21) (21)
Movement in fair value of cash flow hedges 27 135 111
Cash flow hedges recycled to revenue (3) 16 (27)
Total other comprehensive income 23 130 63
Total comprehensive expense attributable (1,389) (595) (1,115)
to equity holders for the period
Loss per share (pence)
Basic loss per share 3 (2.92) (1.50) (2.44)
Diluted loss per share 3 (2.92) (1.50) (2.44)
Consolidated Statement of Financial Position
As at 31 March 2024 - unaudited
31-Mar-24 31-Mar-23 30-Sep-23
6 months 6 months 12 months
Unaudited Unaudited Audited
Notes £000 £000 £000
Assets
Non-current assets
Property, plant and equipment 418 707 518
Intangible assets 6,305 5,309 6,147
Commission assets 28 - 39
Total non-current assets 6,751 6,016 6,704
Current assets
Trade and other receivables 1,425 1,962 1,706
Current tax receivables 862 789 549
Derivative financial asset - 39 -
Cash and cash equivalents 2,532 5,021 4,031
Total current assets 4,819 7,811 6,286
Total assets 11,570 13,827 12,990
Liabilities and equity
Non-current liabilities
Trade and other payables - 17 2
Lease liabilities 208 321 275
Total non-current liabilities 208 338 277
Current liabilities
Trade and other payables 1,206 1,373 1,142
Derivative financial liability 3 - 27
Lease liabilities 115 186 112
Total current liabilities 1,324 1,559 1,281
Total liabilities 1,532 1,897 1,558
Equity
Ordinary shares 4 484 484 484
Share premium 4 84,802 84,802 84,802
Merger relief reserve 1,480 1,480 1,480
Reverse acquisition reserve (75,308) (75,308) (75,308)
Cash flow hedge reserve (3) 40 (27)
Foreign exchange translation reserve (95) (95) (95)
Capital redemption reserve 7,456 7,456 7,456
Accumulated losses (8,778) (6,929) (7,360)
Total equity 10,038 11,930 11,432
Total liabilities and equity 11,570 13,827 12,990
Consolidated Statement of Changes in Equity
For the six months ended 31 March 2024 - unaudited
Foreign Cash
Merger Reverse exchange flow Capital
Ordinary Share relief acquisition translation hedge redemption Accumulated
shares premium reserve reserve reserve reserve reserve Losses Total
£000 £000 £000 £000 £000 £000 £000 £000 £000
Balance at 30 September 2022 482 84,802 1,480 (75,308) (74) (111) 7,456 (6,234) 12,493
Total comprehensive expense
Loss for the period - - - - - - - (1,178) (1,178)
Other comprehensive income / (expense):
Foreign exchange translation - - - - (21) - - - (21)
Movement in fair value of cash flow - - - - - 111 - - 111
Cash flow hedges recycled to revenue - - - - - (27) - - (27)
Total comprehensive income / (expense) - - - - (21) 84 - (1,178) (1,115)
Transactions with owners
Charge in respect of share options - - - - - - - 52 52
Exercise of share options 2 - - - - - - 2
Total transactions with owners 2 - - - - - - 52 54
Balance at 30 September 2023 484 84,802 1,480 (75,308) (95) (27) 7,456 (7,360) 11,432
Total comprehensive expense
Loss for the period - - - - - - - (1,413) (1,413)
Other comprehensive income / (expense): - - - - - - - - -
Foreign exchange translation - - - - - - - - -
Movement in fair value of cash flow hedges - - - - - 27 - - 27
Cash flow hedges recycled to revenue - - - - - (3) - - (3)
Total comprehensive income / (expense) - - - - - 24 - (1,413) (1,389)
Transactions with owners
Charge in respect of share options - - - - - - - (5) (5)
Total transactions with owners - - - - - - - (5) (5)
Balance at 31 March 2024 484 84,802 1,480 (75,308) (95) (3) 7,456 (8,778) 10,038
Consolidated Statement of Cashflows
For the six months ended 31 March 2024 - unaudited
31-Mar-24 31-Mar-23 30-Sep-23
6 months 6 months 12 months
Unaudited Unaudited Audited
£000 £000 £000
Cash flows from operating activities
Loss for the period (1,413) (725) (1,178)
Finance income (55) (44) (105)
Finance expense 11 15 29
Taxation (131) (159) (183)
Depreciation of fixed assets 124 202 400
Amortisation of intangibles 117 103 225
Research and development expenditure credit (163) (136) (355)
Impairment of intangible assets - - 14
Share option charge (5) 30 52
(1,515) (714) (1,101)
Decrease in trade and other receivables 129 1,047 1,290
Increase/(decrease) in trade and other payables 216 (145) (327)
Cash (used in)/generated from operations (1,170) 188 (138)
Taxation received - - 456
Taxation paid (1) (15) (16)
Net cash (used in)/generated from operating activities (1,171) 173 302
Purchase of property, plant and equipment (24) (89) (100)
Purchase of intangible assets including staff costs capitalised (291) (828) (1,863)
Finance income 63 39 99
Net cash used in investing activities (252) (878) (1,864)
Issue of shares - 2 2
Repayment of lease liabilities (76) (25) (158)
Net cash used in financing activities (76) (23) (156)
Movements in cash and cash equivalents in the period (1,499) (728) (1,718)
Cash and cash equivalents at start of period 4,031 5,769 5,769
Effect of exchange rate fluctuations on cash held - (20) (20)
Cash and cash equivalents at end of period 2,532 5,021 4,031
Notes to the financial statements
1. Presentation of the financial statements
a. General information
IXICO plc (the 'Company') is a public limited company incorporated in England
and Wales and is admitted to trading on the AIM market of the London Stock
Exchange under the symbol IXI. The address of its registered office is 4th
Floor, Griffin Court, 15 Long Lane, London EC1A 9PN.
The Company is a parent of a number of subsidiaries, together referred to
throughout as 'the Group'. The Group is an established provider of
technology-enabled imaging services to the global biopharmaceutical industry.
The Group's services are used to select patients for clinical trials and
assess the safety and efficacy of new drugs in development within the field of
neurological disease.
b. Basis of preparation
The condensed consolidated interim financial statements were approved by the
Board of Directors for issue on 20 May 2024. The condensed consolidated
interim financial statements do not comprise statutory accounts within the
meaning of section 434 of the Companies Act 2006. The condensed consolidated
interim financial statements for the six months ended 31 March 2024, together
with the comparative information for the six months ended 31 March 2023 are
unaudited.
The statutory accounts of the Company for the year ended 30 September 2023
were approved by the Board of Directors on 4 December 2023 and delivered to
the Registrar of Companies. The report of the auditors on those accounts was
unqualified, did not contain an emphasis of matter paragraph and did not
contain any statement under section 498 of the Companies Act 2006.
The condensed consolidated interim financial statements comprise a Statement
of Comprehensive Income, a Statement of Financial Position, a Statement of
Changes in Equity, a Statement of Cash Flows, and accompanying notes. These
financial statements have been prepared under the historical cost convention
modified by the revaluation of certain financial instruments.
The condensed consolidated interim financial statements are presented in Great
British Pounds ('£' or 'GBP') and are rounded to the nearest thousand unless
otherwise stated. This is the functional currency of the Group, and is the
currency of the primary economic environment in which it operates. Foreign
currency transactions are accounted for in accordance with the policies set
out below.
c. Basis of consolidation
The condensed consolidated interim financial statements incorporate the
accounts of the Company and its subsidiary companies adjusted to eliminate
intra-Group balances and any unrealised gains and losses or income and
expenses arising from intra-Group transactions. When necessary, adjustments
are made to the financial statements of subsidiaries to bring their accounting
policies into line with the Group's accounting policies.
The Group controls a subsidiary when the Group is exposed to, or has rights
to, variable returns from its involvement with a subsidiary and has the
ability to affect those returns through its power over a subsidiary. In
assessing control, potential voting rights that are currently exercisable or
convertible are taken into account.
The results of subsidiary companies are included in the condensed consolidated
interim financial statements from the date that control commences until the
date that control ceases. The assets and liabilities of foreign operations are
translated into GBP at exchange rates prevailing at the end of the reporting
period. Income statements and cash flows of foreign operations are translated
into GBP at average monthly exchange rates which approximate foreign exchange
rates at the date of the transaction. Foreign exchange differences arising on
retranslation are recognised directly in a separate translation reserve.
d. Going concern
At the time of approving the condensed consolidated interim financial
statements, the Directors have considered the expected future performance
together with the Group's estimated future cash inflows from existing
long-term contracts and sales pipeline.
In assessing going concern, management prepare forecasts which are updated
monthly that consider different scenarios throughout the course of the
financial year, as well as ad-hoc forecasts that extend into future years. The
Directors have considered these forecasts, alongside the Group's strong
balance sheet and cash balance as well as the ability for the Group to
mitigate costs if necessary.
After due consideration of these forecasts, the Directors concluded with
confidence that the Group has adequate financial resources to continue in
operation for the foreseeable future.
2. Significant accounting policies, judgements, and estimation
uncertainty
The unaudited condensed consolidated interim financial statements have been
prepared using the accounting policies as described in the 30 September 2023
audited year end Annual Report and have been consistently applied.
When preparing the condensed consolidated interim financial statements, the
Directors make a number of judgements, estimates and assumptions about the
recognition and measurement of assets, liabilities, income and expenses.
Significant management judgements
The following are significant management judgements in applying the accounting
policies of the Group that have the most significant effect on the
consolidated financial statements.
Capitalisation of internally developed software
Distinguishing the research and development phases of a new software product
and determining whether the requirements for the capitalisation of development
costs are met requires judgement. Management assesses whether a project meets
the recognition criteria as set out in IAS 38 based on an individual project
basis. Where the criteria are not met, the research and development
expenditure will be expensed in the Consolidated Statement of Comprehensive
Income. Where the recognition criteria are met, the items will be capitalised
as an intangible asset.
During the period ended 31 March 2024, research and development expenses
totalled £898,000 (H1 2023: £1,289,000). Of this amount, £275,000 (H1 2023:
£825,000) was capitalised as an intangible asset, £230,000 (H1 2023:
£571,000) relating to employee costs and £45,000 (H1 2023: £254,000)
relating to external costs. The balance of expenditure being £623,000 (H1
2023: £464,000) is recognised in the Consolidated Statement of Comprehensive
Income as an expense.
Recovery of deferred tax assets
Deferred tax assets have not been recognised for deductible temporary
differences and tax losses. The Directors consider that there is not
sufficient certainty that future taxable profits will be available to utilise
those temporary differences and tax losses.
Estimation uncertainty
Information about estimates and assumptions that have the most significant
effect on recognition and measurement of assets, liabilities, income and
expenses is provided below. Changes to these estimations may result in
substantially different results for the period.
Determination of transaction prices in revenue recognition
Client contracts include an agreed work order so the transaction price for a
contract is allocated against each distinct performance obligations for each
service, based on their relative stand-alone selling prices. For legacy
contracts prior to the adoption of IFRS 15, management were required to
estimate the standalone price allocated to each distinct service that were
previously grouped in a single price. For new contracts, the fair value of
individual components is based on actual amounts charged by the Group on a
stand-alone basis. Management have determined that for items recognised on a
straight-line basis, including project, site and data management, the demands
of this on the company are spread evenly over the life of the revenue stream.
This was determined through an understanding of the work required to deliver
the various revenue streams and the obligations within the contract needing to
be met.
Share-based payments
The Group measures the cost of equity-settled transactions with employees by
reference to the fair value of the equity instruments at the date at which
they are granted. The fair value of the options granted is measured using an
option valuation model, taking into account the terms and conditions upon
which the options were granted.
Useful lives of depreciable assets
The useful lives of depreciable assets are determined by management at the
date of purchase based on the expected useful lives of the assets. These are
subsequently monitored and reviewed annually and where there is objective
evidence of changes in the useful economic lives, these estimates are
adjusted. Any changes to these estimates may result in significantly different
results for the period.
3. Earnings per share
The calculation of basic and diluted earnings per share ('EPS') of the Group
is based on the following data:
31 Mar 24 31 Mar 23 30 Sep 23
6 months 6 months 12 months
Unaudited Unaudited Audited
Earnings
Earnings for the purposes of basic and diluted EPS, being net profit (1,413) (725) (1,178)
attributable to the owners of the Company (£000)
Number of shares
Weighted average number of shares for the purposes of basic EPS 48,351,373 48,267,395 48,309,181
Effect of potentially dilutive ordinary shares:
- Weighted average number of share options - - -
Weighted average number of shares for the purposes of diluted EPS 48,351,373 48,267,395 48,309,181
Basic earnings per share is calculated by dividing earnings attributable to
the owners of the Company by the weighted average number of shares in issue
during the period. The diluted EPS is calculated by dividing earnings
attributable to the owners of the Company by the weighted average number of
shares in issue taking into account the share options outstanding during the
period. For the 6 months to 31 March 2024, there was no dilutive effect as the
share options in issue would have decreased the loss per share.
The basic and diluted earnings per share for the Group and Company is:
31 Mar 24 31 Mar 23 30 Sep 23
6 months 6 months 12 months
Unaudited Unaudited Audited
Basic earnings per share (2.92p) (1.50p) (2.44p)
Diluted earnings per share (2.92p) (1.50p) (2.44p)
4. Issued capital and reserves
Ordinary shares and share premium
The Company has one class of ordinary shares. The share capital issued has a
nominal value of £0.01 and all carry the right to one vote at shareholders'
meetings and are eligible to receive dividends. Share premium is recognised
when the amount paid for a share is in excess of the nominal value.
The Group and Company's opening and closing share capital and share premium
reserves are:
Group and Company
Ordinary Share Share
shares capital premium
Number £000 £000
Authorised, issued and fully paid
At 30 September 2023 48,351,373 484 84,802
Share options exercised - - -
At 31 March 2024 48,351,373 484 84,802
5. Share-based payments
Certain Directors and employees of the Group hold options to subscribe for
shares in the Company under share option schemes. There are 2 distinct
structures to the share options in operation in the Group (H1 2023: 2). Both
structures relate to a single scheme outlined in the EMI Share Option Plan
2014.
The scheme is open, by invitation, to both Executive Directors and employees.
Participants are granted share options in the Company which contain vesting
conditions. These are subject to the achievement of individual employee and
Group performance criteria as determined by the Board. The vesting period
varies by award and the conditions approved by the Board. Options are usually
forfeited if the employee leaves the Group before the options vest.
Total share options outstanding have a range of exercise prices from £0.01 to
£0.70 per option and the weighted average contractual life is 6.1 years (H1
2023: 7.2 years). The total charge for the period relating to employee
share-based payment plans for continuing operations was a reversal of £5,000
(H1 2023: £30,000 charge).
Details of the share options under the scheme outstanding during the period
are as follows:
As at 31 March 2024 As at 30 September 2023
Number Weighted average exercise price Number Weighted average exercise price
Outstanding at start of the period 3,529,681 £0.15 4,490,931 £0.18
Granted - - - -
Exercised - - (200,000) £0.01
Lapsed (200,000) £0.17 (761,250) £0.29
Outstanding at end of the period 3,329,681 £0.15 3,529,681 £0.15
Exercisable at end of the period 2,313,014 £0.07 1,949,680 £0.08
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