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RNS Number : 7901V System1 Group PLC 06 December 2023
Press Release
6 December 2023
System1 Group PLC (AIM: SYS1)
("System1" or "the Group" or "the Company")
Unaudited interim results for the six months ended 30 September 2023
System1 Group the marketing decision-making platform www.system1group.com
(http://www.system1group.com/) announces its unaudited interim results for the
six months ended 30 September 2023 ("H1", "H1 FY24").
H1 H1 Change**
FY24 FY23
£m £m %
Management Basis*
Revenue 13.3 10.5 27%
Gross Profit 11.7 8.5 37%
Adjusted Operating Costs (9.8) (8.9) 10%
Adjusted Profit/(Loss)before Taxation 1.9 (0.4) NM
Statutory Basis
Revenue 13.3 10.5 27%
Gross Profit 11.7 8.5 37%
Operating Costs (11.1) (8.6) 27%
Other Operating Income 0.3 0.1 47%
Profit before Taxation 0.9 0.0 NM
Income Tax Expense (0.3) (0.2) 46%
Profit/(Loss) for the Period 0.6 (0.2) NM
Diluted Earnings per Share 4.9p (1.7p)
* Adjusted Operating Costs exclude impairment, other interest, share based
payments, bonuses and commissions, severance costs, IP litigation costs, and
other staff costs (sabbatical and holiday provisions). Adjusted Profit/(Loss)
Before Taxation is Gross Profit less Adjusted Operating Costs and excludes
Other Operating Income. Adjusted figures exclude items, positive and negative,
that impede easy understanding of underlying performance. Details can be found
in note 12 of the interim statements.
** Percentages and totals are based on numbers rounded to £'000s
H1 Highlights
· Platform revenue (Predict Your and Improve Your) grew 44% on H1 FY23 to £10.9m and represented 82% of total revenue (H1 FY23: 73%). Total revenue increased by 27%.
· Revenue growth in all regions including the Americas.
· New partnerships launched with Pinterest, Finecast, JC Decaux and Teads, contributing to strong growth in ad testing revenue.
· Increased focus on non-TV format ad testing with the launches of TYA Digital, TYA Audio.
· Innovation product launches during calendar 2024.
· 136 new platform clients in H1 (H1 FY23: 69) and improved retention of existing customers.
· Cost of sales down 17% due to platform and supply chain efficiencies.
· Gross profit margin increased to 87.8% (H1 FY23: 81.5%).
· Average H1 headcount down 6% to 143 (H1 FY23: 152).
· Benefits of operational gearing and our scalable business model showing through: Adjusted profit before taxation increased to £1.9m (H1 FY23: £0.4m loss); £0.9m statutory profit before tax (H1 FY23: £0.0m).
· £0.6m free cash flow in H1 (H1 FY23: outflow of £2.6m). Cash balance of £6.3m as at 30 September 2023 (31 March 2023: £5.7m).
· Diluted and basic earnings per share 4.9p (H1 FY23 diluted and basic loss per share: 1.7p).
Current Trading & Outlook
· Second half of the year has started well, and at this stage we expect
H2 revenue to exceed H1.
· Gross profit margin to date remains close to that achieved in H1, and
well above recent historic levels.
· Despite a difficult economic environment in some key markets, and
challenging conditions for media owners and advertisers, we believe System1
can continue to grow profitably by gaining market share from large incumbents
that we believe have less predictive products.
System1 CEO James Gregory commented:
"One year after our strategic review there are signs that the Company's
fame-building activity and renewed focus on execution are working. We are
helping even more of the world's largest advertisers make confident creative
decisions and won over 100 new clients in H1, including a global top three
advertiser, a leading global breakfast foods company, a leading European car
manufacturer, a leading budget airline, a 'big four' UK supermarket, and a
multinational consumer goods company. Platform revenue comprised 82% of total
revenue in H1, ahead of our plan and well above last year's level."
Further information on the Company can be found at www.system1group.com
(http://www.system1group.com/) .
This announcement contains inside information for the purposes of article 7 of
the Market Abuse Regulation (EU) 596/2014 as amended by regulation 11 of the
Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication
of this announcement, this information is now considered to be in the public
domain.
For further information, please contact:
System1 Group PLC Tel: +44 (0)20 7043 1000
James Gregory, CEO
Chris Willford, Chief Financial Officer
Canaccord Genuity Limited Tel: +44 (0)20 7523 8000
Simon Bridges / Andrew Potts/ Harry Rees
Interim Statement
Financial Performance
KPIs H1 FY24 H1 FY23
Platform Revenue as a % total Revenue 82 73
Platform Revenue growth % 44 33
Gross Profit % Revenue 87.8 81.5
Adjusted EBITDA £m (1) 1.7 0.8
Adjusted EBITDA % Revenue 13 8
"Rule of 40" (2) 57 42
Free cash flow(3) 0.6 (2.7)
Net cash £m 6.3 5.7
(1) Statutory profit before taxation + share-based payments + interest,
depreciation and amortisation
(2) Platform Revenue growth % + Adjusted Group EBITDA % Group Revenue
(3) Cash flow after interest and before debt raising/reduction,
buybacks/dividends.
Total revenue increased by 27% and Platform revenue (Predict Your and Improve
Your) grew 44% on H1 FY23 to £10.9m and represented 82% of total revenue (H1
FY23: 73%). Revenue grew in all regions including the Americas. In the US
platform revenue rose by 32% and total revenue by 22%.
New "fame" partnerships were launched with Pinterest, Finecast, JC Decaux and
Teads, contributing to strong growth in ad testing revenue, which was 48%
higher than in H1 FY23.
We launched new non-TV ad testing formats in H1 including TYA Digital and TYA
Audio and are planning Innovation product launches during calendar 2024.
Our fame-building, products and partnerships helped the Company to win 136 new
platform clients in H1 (H1 FY23: 69). Furthermore, we retained 128 existing H1
platform clients in H1 compared with 99 in H1 FY23.
Gross profit margin increased from 81.5% in H1 FY23 to 87.8% due to platform
and supply chain efficiencies, price increases and favourable product and
geographic mix versus the comparable period.
Adjusted Operating Costs increased by 10% versus H1 last year due to increased
marketing expenditure, costs relating to enhanced ongoing sector and
geographic coverage of the TYA Premium database, and lower net capitalisation
of IT development costs.
Statutory basis costs increased by £2.4m on H1 FY23, reflecting, in addition
to the Adjusted Operating Costs, performance-related pay compared to a very
low H1 FY23 base, adverse currency effects, and a £0.1m provision against
rent deposits made by System1 in respect of WeWork office leases.
Overall average headcount decreased by 6% to 143 FTE with increases in Sales
& Marketing more than offset by reductions in Operations and IT.
Intellectual Property Litigation
On 30 June 2023 the Company announced that a settlement had been reached with
System1 Inc regarding the use of the "System1" trademark. The parties have
signed a global agreement which governs the co-existence of their respective
use of the "System1" mark in connection with their operations. As part of this
agreement, the Company is receiving a fixed undisclosed payment payable in
instalments. The first instalment due under this agreement was received in
August 2023 and has been recognised in other operating income. The parties
have agreed to keep further detail of their agreement confidential.
Tax
The Group has recognised a tax charge of £0.3m in the six months to 30 September 2023 (H1 FY23: tax charge of £0.2m). The H1 FY24 figure includes a receipt of £0.2m in respect of R&D tax credit claims in the UK. The tax charge arises from trading profits in non-UK jurisdictions which cannot be offset against trading losses elsewhere.
Earnings Per Share
Diluted and Basic Earnings per Share improved from a loss of 1.7p to an H1
FY24 earnings per share of 4.9p, in line with the increase in profits for H1
FY24.
Cash
The Group ended the period with cash balances of £6.3m, and no borrowings
(FY23: net cash of £5.7m). Free cash flow after property lease costs and
interest income amounted to an inflow of £0.6m in the first half (H1: FY23:
outflow of £2.7m).
Balance Sheet
Total equity increased to £9.3m (31 March 2023: £8.6m), arising from the
year-to-date post-tax profit of £0.6m and a small £0.1m gain on foreign
currency reserves. Intangible assets have increased by £0.3m as a result of
the capitalisation of £0.5m of certain platform development costs, offset by
amortisation charges on completed projects.
Current Trading & Outlook
The second half of the year has started well, and at this stage we expect H2 revenue to exceed H1. The gross profit margin in the third quarter to date remains close to that achieved in H1, and well above recent historic levels. Despite a difficult economic environment in some key markets, and challenging conditions for media owners and advertisers, we believe System1 can continue to grow profitably by gaining market share from large incumbents that we believe have less predictive products.
James Gregory Chris Willford
Chief Executive Officer Chief Financial Officer
Condensed Consolidated Income Statement
for the 6 months ended 30 September 2023
Note Sep-23 Sep-22
£'000 £'000
Revenue 3 13,305 10,496
Cost of sales (1,620) (1,946)
Gross profit 11,685 8,550
Administrative expenses (11,070) (8,696)
Other operating income 330 224
Operating profit 945 78
Finance expense (20) (84)
Profit/(Loss) before taxation 925 (6)
Income tax expense (298) (204)
Profit/(Loss) for the period 627 (210)
Attributable to the equity holders of the Company 627
(210)
Earnings per share attributable to equity holders of the Company
Basic earnings/(loss) per share 4 4.9p (1.7p)
Diluted earnings/(loss) per share 4 4.9p (1.7p)
CONDENSED Consolidated Statement of Comprehensive Income
for the 6 months ended 30 September 2023
Sep-23 Sep-22
£'000 £'000
Profit/(loss) for the period 627 (210)
Other comprehensive income:
Items that may be subsequently reclassified to profit/(loss)
Currency translation differences on translating foreign operations 57 447
Other comprehensive income for the period, net of tax 57 447
Total comprehensive income for the period attributable to equity holders of 684
the Company
237
CONDENSED Consolidated Balance Sheet
as at 30 September 2023
Registered no. 05940040
Note Sep-23 Mar-23
£'000 £'000
ASSETS
Non-current assets
Property, plant, and equipment 7 735 1,162
Intangible assets 8 1,650 1,396
Deferred tax asset 132 203
2,517 2,761
Current assets
Contract assets 170 102
Trade and other receivables 6,563 6,344
Income taxes receivable 74 55
Cash and cash equivalents 6,281 5,719
13,088 12,220
Total assets 15,605 14,981
EQUITY
Attributable to equity holders of the Company
Share capital 10 132 132
Share premium account 1,601 1,601
Merger reserve 477 477
Foreign currency translation reserve 480 423
Retained earnings 6,641 5,974
Total equity 9,331 8,607
LIABILITIES
Non-current liabilities
Provisions 329 353
Lease liabilities 9 - 362
329 715
Current liabilities
Provisions 96 101
Lease liabilities 9 922 1,094
Contract liabilities 796 764
Trade and other payables 4,131 3,700
5,945 5,659
Total liabilities 6,274 6,374
Total equity and liabilities 15,605 14,981
CONDENSED Consolidated Statement of Cash Flows
for the 6 months ended 30 September 2023
Note Sep-23 Sep-22
£'000 £'000
Net cash generated from/(used in) operations 11 1,900 (1,297)
Tax paid (252) (187)
Net cash generated from/(used in) operating activities 1,648 (1,484)
Cash flows from investing activities
Purchases of property, plant, and equipment 7 (38) (3)
Purchase of intangible assets 8 (500) (654)
Net cash used by investing activities (538) (657)
Net cash flow before financing activities 1,110 (2,141)
Cash flows from financing activities
Interest paid (20) (84)
Property lease liability payments (533) (433)
Purchase of own shares - (135)
Net cash used by financing activities (553) (652)
Net increase/(decrease) in cash and cash equivalents 557 (2,793)
Cash and cash equivalents at beginning of period 5,719 11,174
Exchange gain on cash and cash equivalents 5 683
Cash and cash equivalents at end of period 6,281 9,064
Sep-23 Sep-22
£'000 £'000
Net cash flow before financing activities 1,110 (2,141)
Net cash flow for property leases (553) (468)
Operating cash flow 557 (2,609)
Consolidated Statement of Cash Flows (continued)
for the 6 months ended 30 September 2023
Consolidated Movements in Net Cash/(Debt)
Cash and cash equivalents Borrowings Lease liabilities Total
£'000 £'000 £'000 £'000
At 1 April 2022 11,174 (2,500) (2,508) 6,166
Cash flows (2,793) - 478 (2,315)
Non-cash charges
Interest on lease liabilities - - (45) (45)
Exchange and other non-cash movements 683 - - 683
At 30 September 2022 9,064 (2,500) (2,075) 4,489
Consolidated Movements in Net Cash/(Debt)
Cash and cash equivalents Borrowings Lease liabilities Total
£'000 £'000 £'000 £'000
At 1 April 2023 5,719 - (1,456) 4,263
Cash flows 557 - 553 1,110
Non-cash charges
Interest on lease liabilities - - (20) (20)
Exchange and other non-cash movements 5 - 1 6
At 30 September 2023 6,281 - (922) 5,359
Consolidated Statement of Changes in Equity
for the 6 months ended 30 September 2023
Share capital Share premium account Merger reserve Foreign currency translation reserve Retained earnings Total
£'000 £'000 £'000 £'000 £'000 £'000
At 1 April 2022 132 1,601 477 196 5,857 8,263
Loss for the period - - - - (210) (210)
Other comprehensive income:
- currency translation differences - - - 447 - 447
Total comprehensive income - - - 447 (210) 237
Transactions with owners:
Employee share options:
- value of employee services - - - - 182 182
Purchase of own shares (135) (135)
At 30 September 2022 132 1,601 477 643 5,694 8,547
At 1 April 2022 132 1,601 477 196 5,857 8,263
Profit for the period - - - - 404 404
Other comprehensive income:
- currency translation differences - - - 227 - 227
Total comprehensive income - - - 227 404 631
Transactions with owners:
Employee share options:
- value of employee services - - - - (153) (153)
Purchase of own shares (134) (134)
At 31 March 2023 132 1,601 477 423 5,974 8,607
At 1 April 2023 132 1,601 477 423 5,974 8,607
Profit for the period - - - - 627 627
Other comprehensive income:
- currency translation differences - - - 57 - 57
Total comprehensive income - - - 57 627 684
Transactions with owners:
Employee share options:
- value of employee services - - - - 40 40
At 30 September 2023 132 1,601 477 480 6,641 9,331
Notes to the Condensed Consolidated Financial Statements
for the 6 months ended 30 September 2023
System1 Group PLC (the "Company") was incorporated on 19 September 2006 in the
United Kingdom. The Company's principal operating subsidiary, System1 Research
Limited, was at that time already established, having been incorporated on 29
December 1999. The address of the Company's registered office is 4 More London
Riverside, London, UK SE1 2AU. The Company's shares are listed on the AIM
Market of the London Stock Exchange ("AIM").
The Company and its subsidiaries (together the "Group") provide predictive
marketing data and market research consultancy.
The Board of Directors approved these interim financial statements for the six
months ended 30 September 2023 for issuance on 6 December 2023.
The financial information set out in this interim report does not constitute
statutory accounts as defined in Section 434 of the Companies Act 2006 and is
unaudited. The Group's latest statutory financial statements were for the year
ended 31 March 2023 and these have been approved by the Board of Directors and
filed with the Registrar of Companies. These accounts, which contained an
unqualified audit report under Section 495, did not include a reference to any
matters to which the auditor drew attention by way of emphasis of matter and
did not contain a statement under Section 498 (2) or (3) of the Companies Act
2006.
1. Basis of Preparation
This condensed consolidated interim financial information has been prepared in
accordance with UK adopted IAS 34 Interim Financial Reporting and on the going
concern basis. The Group is mindful of the current economic backdrop in
Europe, and the Board continues to review the performance of the Group
monthly, and senior management has a weekly assessment of sales revenue and
gross profit. The Group also prepares and reviews cash flow forecasts and is
confident that the going concern assessment remains appropriate. The results
presented in this report are unaudited and they have been prepared in
accordance with the recognition and measurement principles of UK-adopted
International Accounting Standards that are expected to be applicable to the
financial statements for the year ending 31 March 2024 and on the basis of the
accounting policies to be used in those financial statements. The condensed
consolidated financial statements do not include all the information and
disclosures required in the annual financial statements and should be read in
conjunction with the Group's annual financial statements, being the statutory
financial statements for System1 Group plc, as at 31 March 2023, which have
been prepared in accordance with UK adopted International Accounting Standards
with the requirements of the Companies Act 2006 as applicable to companies
reporting under those standards.
The preparation of financial statements in accordance with UK-adopted
International Accounting Standards ("UK-adopted IFRS") requires the use of
certain critical accounting estimates.
2. Principal accounting policies
The principal accounting policies adopted are consistent with those of the
financial statements for the year ended 31 March 2023.
3. Segment Information
The financial performance of the Group's geographic operating units
("Reportable Segments") is set out below.
Sep-23 Sep-22
Revenue Revenue
£'000 £'000
By location of customer
Americas 4,748 4,050
United Kingdom 5,610 3,844
Rest of Europe 2,182 1,864
APAC 765 738
13,305 10,496
*Segmental revenue is revenue generated from external customers and so
excludes intercompany revenue and is attributable to geographical areas based
upon the location in which the service is delivered.
Consolidated balance sheet information is regularly provided to the Executive
Directors while segment balance sheet information is not. Accordingly, the
Company does not disclose segment balance sheet information here.
Sep-23 Sep-22
Revenue Revenue
*As restated
£'000 £'000
By product variant
Predict Your (data) 9,036 6,175
Improve Your (data-led consultancy) 1,902 1,447
Standard (platform revenue) 10,938 7,622
Other consultancy (non-platform) 2,367 2,874
13,305 10,496
By product group
Communications (Ad Testing) 10,377 7,022
Brand (Brand Tracking) 1,420 1,865
Innovation 1,508 1,609
13,305 10,496
*Following the expansion of the Group's data and platform-led offering,
revenue segments in respect of "By product variant" were revised during the
second half of the year ended 31 March 2023 to reflect the new structure of
the Group's internal reporting. The comparatives have been re-stated
accordingly.
4. Earnings Per Share
Sep-23 Sep-22
Profit/(Loss) attributable to equity holders of the Company, in £'000 627 (210)
Weighted average number of Ordinary Shares in issue 12,678,929 12,717,762
Basic earnings/(loss) per share 4.9p (1.7p)
Profit/(Loss) attributable to equity holders of the Company, in £'000 627 (210)
Weighted average number of Ordinary Shares in issue 12,678,929 12,717,762
Share options* 12,823 13,000
Weighted average number of Ordinary Shares for diluted earnings per share 12,691,752 12,730,762
Diluted earnings/(loss) per share 4.9p (1.7p)
*The impact of share options is anti-dilutive in the period ended 30
September 2022 due to the loss.
5. Headcount
The average number of staff employed by the Group during the period was as
follows:
Sep-23 Sep-22
No. No.
Sales and marketing 50 47
Operations 39 45
IT 32 38
Administration 22 22
143 152
6. Dividends
The Company did not pay dividends in the six months ended 30 September 2023
and 30 September 2022. The Company does not propose the payment of an interim
dividend.
No dividends were paid to the Company's directors.
7. Property, Plant, and Equipment
Right-of-use assets Furniture and fixtures Computer hardware Total
£'000 £'000 £'000 £'000
At 1 April 2022
Cost 3,555 33 192 3,780
Accumulated depreciation (1,584) (29) (113) (1,726)
Net book value 1,971 4 79 2,054
Net book value, at 1 April 2022 1,971 4 79 2,054
Additions - - - 30 30
Foreign exchange - 49 - 2 51
Depreciation charge for the year (894) (3) (76) (973)
Net book value, at 31 March 2023 1,126 1 35 1,162
At 31 March 2023
Cost 2,050 11 206 2,267
Accumulated depreciation (924) (10) (171) (1,105)
Net book value 1,126 1 35 1,162
At 1 April 2023
Cost 2,050 11 206 2,267
Accumulated depreciation (924) (10) (171) (1,105)
Net book value 1,126 1 35 1,162
Net book value, at 1 April 2023 1,126 1 35 1,162
Additions - - 38 38
Foreign exchange 1 - - 1
Depreciation charge for the year (440) - (26) (466)
Net book value, at 30 September 2023 687 1 47 735
At 30 September 2023
Cost 2,061 11 244 2,316
Accumulated depreciation (1,374) (10) (197) (1,581)
Net book value 687 1 47 735
No impairment charges or reversals have been recorded in the six months ended
30 September 2023, and there have been no substantive changes to leasehold
arrangements.
8. Intangible assets
Development costs Software licences Total
£'000 £'000 £'000
At 1 April 2022
Cost - 525 525
Accumulated depreciation - (143) (143)
Net book value - 382 382
Net book value, at 1 April 2022 - 382 382
Additions 1,225 - 1,225
Depreciation charge for the year (101) (110) (211)
Net book value, at 31 March 2023 1,124 272 1,396
At 31 March 2023
Cost 1,225 525 1,750
Accumulated depreciation (101) (253) (354)
Net book value 1,124 272 1,396
At 1 April 2023
Cost 1,225 525 1,750
Accumulated depreciation (101) (253) (354)
Net book value 1,124 272 1,396
Net book value, at 1 April 2023 1,124 272 1,396
Additions 500 - 500
Depreciation charge for the year (194) (52) (246)
Net book value, at 30 September 2023 1,430 220 1,650
At 30 September 2023
Cost 1,725 525 2,250
Accumulated depreciation (295) (305) (600)
Net book value 1,430 220 1,650
In the 12 months to 31 March 2023, the Company capitalised £1,225k of costs
related to the development of the "Test Your" platform (carrying value £865k
at 31 March 2023), which completed during the year ended 31 March 2023, and
the Supply Chain Automation platform (carrying value £259k at 31 March 2023),
which is due for completion in the year ended 31 March 2024. A further £500k
has been capitalised in respect of the Supply Chain Automation project in the
six months ended 30 September 2023.
Development costs in respect of completed projects are tested for impairment
where impairment indicators exist. Development costs in respect of ongoing
projects are tested for impairment at each reporting date. The carrying value
of the assets in each case are assigned to their respective cash generating
units for the purposes of assessing future cashflows. The principal
assumptions used in the forecasts were the timing and amount of future
revenues and cost savings, which were derived from the latest forecasts
approved by the Board. Following the assessment, the Board have determined
that no impairment of assets is required at 30 September 2023. Capitalised
platform development costs are being amortised over a 3-year period.
9. Borrowings
The analysis of the maturity of lease liabilities is as follows:
Sep-23 Mar-23
£'000 £'000
Within one year 934 1,031
Later than 1 but no later than 5 years - 457
More than 5 years - -
Minimum lease payments 934 1,488
Future finance charges (12) (32)
Recognised as a liability 922 1,456
The present value of finance lease liabilities is as follows:
Sep-23 Mar-23
£'000 £'000
Within one year 922 1,094
Later than 1 but no later than 5 years - 362
More than 5 years - -
922 1,456
On 22 February 2023, the Company entered into an Overdraft Facility with HSBC.
The facility of up to a maximum of £1,500,000, is secured over the Company's
trade receivables, and incurs interest at 3% above the Bank of England base
rate on drawn balances. The facility has no fixed end date and can be
cancelled by either party at any time. During the period ended 30 September
2023, the Company has not drawn any amounts under the facility, and no amounts
have been drawn to the date of the signing of these financial statements.
10. Share Capital
The share capital of System1 Group PLC consists only of fully paid Ordinary
Shares ("Shares") with a par value of one penny each. All Shares are equally
eligible to receive dividends and the repayment of capital and represent one
vote at the Annual General Meeting.
Sep-23 Mar-23
No. £'000 No. £'000
Allotted, called up, and fully paid ordinary shares 13,226,773 132 13,226,773 132
At 1 April and at 30 September
Sep-23 Mar-23
Treasury shares Weighted average exercise price per share Treasury shares Weighted average exercise price per share
No. Pence No. Pence
Shares held by Treasury
At 1 April 547,844 487,151
Purchase of treasury shares - 60,693
Transfer of shares to satisfy options exercise - - - -
At 30 September 547,844 547,844
11. Net Cash Generated from Operations
Sep-23 Sep-22
£'000 £'000
Profit/(loss) before taxation 925 (6)
Depreciation of property, plant, and equipment 466 496
Amortisation and impairment of intangible assets 246 58
Interest paid 20 84
Share-based payment expense 40 182
(Increase)/decrease in contract assets (69) 47
Increase in trade and other receivables (219) (1,001)
Increase/(decrease) in trade and other payables 432 (819)
Increase in deferred income 32 51
Decrease in provisions (29) (65)
Exchange differences on operating items 56 (324)
Net cash generated from/(used in) operations 1,900 (1,297)
12. Reconciliation between Operating Costs and Adjusted Operating Costs:
Sep-23 Sep-22
£'000 £'000
Administrative expenses 11,070 8,696
Finance expense 20 84
Total operating costs 11,090 8,780
Less: Adjusting items
Compensation for loss of office 35 -
Bonus and commissions expense 1,124 64
Share-based payment expense* 52 189
Other interest expense - 48
Other staff costs (22) 5
Foreign exchange loss/(gain) 74 (490)
Trademark litigation 20 9
1,283 (175)
Adjusted operating costs 9,807 8,955
*Inclusive of social security accrued in respect of share options
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