TIDMCLCO
RNS Number : 2391B
Cloudcoco Group PLC
09 June 2021
9 June 2021
CloudCoCo Group plc
("CloudCoCo", "the Group" or "the Company")
Interim Results
CloudCoCo (AIM: CLCO), a UK provider of IT and communications
solutions to businesses and public sector organisations, announces
its unaudited interim results for the six months ended 31 March
2021.
Financial highlights
-- Revenue of GBP4.14m (H1 2020: GBP4.43m, H2 2020: GBP3.54m)
-- Trading Group EBITDA (1) increased 435% to GBP364k (H1
2020: GBP68k, H2 2020: GBP193k)
-- Pre-tax loss of GBP0.67m (H1 2020: loss of GBP1.57m,
H2 2020: loss of GBP1.39m)
-- Cash at bank of GBP0.57m at 31 March 2021 (H1 2020: GBP0.27m)
and GBP0.4m undrawn working capital facility
(1) earnings before net finance costs, tax, depreciation,
amortisation, plc costs, separately identifiable items and
share-based
income and payments
Operational highlights
-- Resilient response to the impact of Covid with some colleagues
choosing to continue to work remotely
-- Secured multi-year contract extensions with Vantage Motor
Group and Baywater Healthcare, two of CloudCoCo's largest
clients by revenue
-- Maturation of cost actions linked to 'get well' phase
now delivering annual savings
-- 'CoCo-One' people initiative progressing well with introduction
of performance-based share options scheme and the alignment
of technical teams in Warrington and Leeds offices
Post-period highlights
-- Continued demand for the Group's services and growing
pipeline
-- Appointment of Nigel Redwood, former CEO of AIM-listed
Nasstar PLC, as Strategic Consultant (a non-board position)
in line with the Board's decision to begin reviewing
options to scale the business
Board changes
-- As announced earlier today, Darron Giddens, Group Finance
Director, replaces Mike Lacey as Chief Financial Officer
and member of the Board
Mark Halpin, CEO of CloudCoCo, commented:
"I am proud to report another period of significant progress for
the Group, with execution against all of our company objectives and
continued growth in our profitability, with Trading EBITDA in the
first half up 435% year on year on the prior period. We have
delivered a resilient performance in the period, with notable
revenue and total contract value increases on the second half of
2020, despite the continued impact of Covid on the trading
environment.
"The business is in good health, both operationally and in the
pipeline of opportunities ahead of us. There will continue to be
challenges to overcome, but we will meet them head on and remain
confident of making further progress in the second half and
beyond.
"Progress through the next phase in our development will be
bolstered by the post-period hire of Nigel Redwood as Strategic
Consultant. Nigel has a track record of accelerating growth -
particularly in the listed IT managed services space - and
recognises the importance of fostering a strong company ethos and
culture. I have no doubt his counsel will prove invaluable as we
deliver our organic growth initiatives and begin to explore the
possibility of M&A."
Contacts
CloudCoCo via Alma PR
Mark Halpin, CEO
Darron Giddens, CFO
N+1 Singer (nominated adviser & broker) +44 (0)20 7496 3000
Peter Steel
Alma PR (financial PR adviser) +44 (0)20 3405 0205
David Ison cloudcoco@almapr.co.uk
Josh Royston
Kieran Breheny
About CloudCoCo
Supported by a team of industry experts and harnessing a diverse
ecosystem of partnerships with blue-chip technology vendors,
CloudCoCo makes it easy for businesses and public sector
organisations to work smarter, faster and more securely by
providing a single point of purchase for their connectivity,
telephony, cyber security, cloud, IT hardware and support
needs.
CloudCoCo has offices in Warrington and Leeds in the UK.
www.cloudcoco.co.uk
CHIEF EXECUTIVE'S REVIEW
Introduction
The first half of FY21 was another period of continued profit
growth, with the Group delivering further incremental operational
improvements and a strong financial performance particularly
considering H1 2020 comparators substantially pre-date the onset of
the Covid pandemic. Trading EBITDA increased 435% to GBP364k (H1
2020: GBP68k, H2 2020: GBP193k), with Group revenues and total
contract value growing versus the second half of 2020 despite the
continued effects of the pandemic on our end markets.
Now, with our platform and the right foundations in place for
future growth, we move forward with a focus on further optimisation
and new business development.
Progress against strategy
At the end of FY20, we outlined the proposed evolution of our
strategy for FY21, with a focus on landing new contracts and
improving the quality of our revenues while maintaining the highest
standards of service.
With this in mind, our core objectives for the current financial
year are to:
1. Accelerate sales
2. Maintain excellent support levels
3. Maintain cost vigilance
4. Improve cash position
In order to simplify our reporting, we have taken the decision
to condense our reporting segments into two new categories -
Managed IT Services and Value Added Resale.
6 months to 6 months to 6 months to Year to
31 30 31 30 September
March September March
2021 2020 2020 2020
GBP'000 GBP'000 GBP'000 GBP'000
---------------------- ------------ ------------ ------------ -------------
By operating segment
Managed IT Services 2,910 2,909 3,222 6,131
Valued Added Resale 1,234 631 1,208 1,839
----------------------- ------------ ------------ ------------ -------------
Total revenue 4,144 3,540 4,430 7,970
----------------------- ------------ ------------ ------------ -------------
We continued to see prospective customers exercise caution in
committing to long-term investments in the period, but nonetheless
secured a number of important long-term contracts and our pipeline
remains healthy.
In Managed IT Services, Vantage Motor Group and Baywater
Healthcare, two of our largest customers by deal value, renewed
their contracts with us on a multi-year basis. We also re-signed a
UK university on a long-term deal and, testament to our leading
capability in Microsoft and telephony, secured a large professional
services order with a major UK educational institution to migrate
70,000 users from Skype to Teams while integrating the customer's
existing PBX telephone system.
In Value Added Resale, demand for our collaboration and cyber
security solutions remained strong, in line with the rise in remote
working and the need to do so safely and securely. Contract wins of
note include helping a leading law firm and a major English council
successfully transition to home working through the delivery of our
IT hardware and telephony solutions. boohoo, who we won as a new
customer in FY20, continued to grow the breadth and depth of the
services they take from us.
We launched our new website at the start of the current
financial year and have continued to enrich it with informative
content and regular tech-tip videos while ramping up our social
media output. Pleasingly, traffic to the website in March 2021 was
up 42% versus October 2020 and LinkedIn followers grew 11% in the
same period.
During the period, we continued to strengthen our relationships
and accreditations within our diverse ecosystem of blue-chip
technology vendor partners, a key competitive advantage for the
Group. In January 2021, Lenovo awarded us 'Gold' status in its
national partner programme.
To improve efficiency, knowledge sharing and ultimately deliver
faster and better projects across the Group, we combined our
technical teams in our Warrington and Leeds offices. We continued
to deliver excellent levels of customer services in the period,
reflected in our consistently high customer satisfaction
scores.
We are pleased to report material overhead savings versus the
first half of the previous financial year. Through these
reductions, these costs are now more closely aligned with the size
of the business. Management continues to take steps to make the
business as efficient as possible from a cost perspective.
The Group continues to improve its cash position. As at 31 March
2021, the Group's cash at bank had increased GBP0.30m year-on-year
to GBP0.57m (H1 2020: GBP0.27m), maintaining an GBP0.4m undrawn
working capital facility.
Our people
We recognise that our people are the foundation of our success,
and we are continually looking at new and innovative ways we can
reward good performance and make CloudCoCo a great place to work.
Our colleagues have again demonstrated exceptional dedication and
resolve in testing circumstances and I would like to personally
thank them all for their contribution.
In November, we introduced CoCo-One, a comprehensive initiative
comprising a number of projects designed to empower our colleagues,
bring them closer together and generally enhance their experience
as CloudCoCo team members. As part of this initiative, all
qualifying colleagues were granted performance-based share options
designed to enable them to share in the success of the business and
align their incentivisation with the interests of shareholders.
Through CoCo-One, we now have processes in place to ensure the
development, implementation and evaluation of our people strategy
continues in a structured and organised way.
Post-period, we appointed Nigel Redwood as Strategic Consultant,
a non-board position. Nigel has over 20 years' experience working
with private equity-backed and public businesses, including six
years as CEO of AIM-listed IT managed services company Nasstar plc.
At Nasstar, Nigel took the business from being loss making on
turnover of GBP2.5m to making an EBITDA profit of GBP6.4m on
turnover of GBP26.1m, driven by the acquisition of four businesses
and a focus on instilling strong and consistent team values through
the integration process. Working alongside senior management, Nigel
will help support CloudCoCo's growth through regular consultation
across the Group's organic growth initiatives and people
strategies, as well as in the appraisal of possible acquisitions
targets.
As per the Board Changes announcement released earlier today,
Darron Giddens will replace Mike Lacey as CFO and member of the
Board with immediate effect.
Finally, we remind shareholders of our intention to appoint an
additional Independent Non-executive Director as and when we find a
suitable candidate.
Current trading and outlook
Post-period, we continue to see demand for our services and
further progress in developing our partnership ecosystem, with
CloudCoCo becoming one of the few UK partners to be listed on the
AWS (Amazon Web Services) Marketplace for Dynamic Cloud Security
solutions; Mitel awarding the Group 'Gold' partner status; and THG
Hosting, The Hut Group's web hosting business, announcing CloudCoCo
as a UK partner.
With an increasing pipeline of opportunities despite the ongoing
impact of Covid, we remain confident in our prospects for the
second half, facilitated by the easing of restrictions. I am
pleased to report that the Board is currently looking at ways to
scale the business. While our strategy is predicated on growing the
business organically, we are also giving consideration to growing
by acquisition.
Since the completion of the acquisition of CloudCoCo Limited in
October 2019, we have made advances in positioning the business for
sustainable and profitable growth, and I look forward to
progressing in a similar vein in the months and years ahead as we
strive to deliver long-term value for shareholders.
Consolidated income statement
for the six-month period ended 31 March 2021
Unaudited Unaudited Unaudited Audited
6 months to 31 6 months to 6 Months to Year to
March 30 31 30 September
2021 September March 2020
2020 2020
------------------------------------------------- ---- --------------- ------------ ------------ --------------
Note GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------------------- ---- --------------- ------------ ------------ --------------
Continuing operations
Revenue 3 4,144 3,540 4,430 7,970
Cost of sales (2,499) (2,041) (2,513) (4,554)
------------------------------------------------- ---- --------------- ------------ ------------ --------------
Gross profit 1,645 1,499 1,917 3,416
Other income 46 97 - 97
Administrative expenses (2,081) (2,698) (3,265) (5,963)
--------------
Trading Group EBITDA (1) - non statutory measure 364 193 68 261
Amortisation of intangible assets (495) (824) (799) (1,623)
Plc costs (222) (227) (234) (461)
Depreciation (47) (85) (28) (113)
Exceptional items 4 (41) (159) (381) (540)
Share-based payments 51 - 26 26
------------------------------------------------- ---- --------------- ------------ ------------ --------------
Operating loss (390) (1,102) (1,348) (2,450)
Interest receivable - - 1 1
Interest payable (279) (291) (227) (518)
------------------------------------------------- ---- --------------- ------------ ------------ --------------
Net finance expense (279) (291) (226) (517)
Loss before taxation (669) (1,393) (1,574) (2,967)
Taxation 94 138 150 288
------------------------------------------------- ---- --------------- ------------ ------------ --------------
Loss and total comprehensive loss for the period
attributable to owners of the parent (575) (1,255) (1,424) (2,679)
------------------------------------------------- ---- --------------- ------------ ------------ --------------
Loss per share
Basic and fully diluted 5 (0.12)p (0.25)p (0.31)p (0.56)p
------------------------------------------------- ---- --------------- ------------ ------------ --------------
(1) earnings before net finance costs, tax, depreciation,
amortisation, plc costs, exceptional items and share-based
payments
Consolidated statement of financial position
as at 31 March 2021
Unaudited Unaudited Audited
31 March 31 March 30 September
2021 2020 2020
Note GBP'000 GBP'000 GBP'000
------------------------------ ---- --------- --------- -------------
Non-current assets
Intangible assets 6 9,864 11,540 10,359
Property, plant and equipment 159 52 221
------------------------------ ---- --------- --------- -------------
Total non-current assets 10,023 11,592 10,580
------------------------------ ---- --------- --------- -------------
Current assets
Inventories 75 52 31
Trade and other receivables 7 2,148 2,454 1,856
Cash and cash equivalents 575 274 588
------------------------------ ---- --------- --------- -------------
Total current assets 2,798 2,780 2,475
------------------------------ ---- --------- --------- -------------
Total assets 12,821 14,372 13,055
------------------------------ ---- --------- --------- -------------
Current liabilities
Trade and other payables 8 (2,482) (2,262) (2,465)
Contract liabilities (969) (707) (565)
Borrowings 9 (109) - (104)
Lease liability (78) (95) (122)
------------------------------ ---- --------- --------- -------------
Total current liabilities (3,638) (3,064) (3,256)
------------------------------ ---- --------- --------- -------------
Non-current liabilities
Contract liabilities (235) (332) (364)
Borrowings 9 (3,719) (3,251) (3,458)
Lease liability (33) (137) (61)
Deferred tax liability (846) (1,357) (940)
------------------------------ ---- --------- --------- -------------
Total non-current liabilities (4,833) (5,077) (4,823)
------------------------------ ---- --------- --------- -------------
Total liabilities (8,471) (8,141) (8,079)
------------------------------ ---- --------- --------- -------------
Net assets 4,350 6,231 4,976
------------------------------ ---- --------- --------- -------------
Equity
Share capital 4,952 4,952 4,952
Share premium account 17,630 17,630 17,630
Capital redemption reserve 6,489 6,489 6,489
Merger reserve 1,997 1,997 1,997
Other reserve 71 122 122
Retained earnings (26,789) (24,959) (26,214)
------------------------------ ---- --------- --------- -------------
Total equity 4,350 6,231 4,976
------------------------------ ---- --------- --------- -------------
Consolidated statement of changes in equity
for the six-month period ended 31 March 2021
Capital
Share Share redemption Merger Other Retained
capital premium reserve reserve reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------------------------- -------- -------- ----------- -------- -------- --------- --------
At 1 October 2019 2,271 11,337 6,489 1,997 1,720 (24,925) (1,111)
-------------------------------------------- -------- -------- ----------- -------- -------- --------- --------
Loss and total comprehensive loss for the
period - - - - - (1,424) (1,424)
-------------------------------------------- -------- -------- ----------- -------- -------- --------- --------
Transactions with owners
Extinguishment of BGF Loan Notes in
consideration for issue of 50,000,000
shares at 0.35p
per share 500 1,275 - - (1,330) 1,148 1,593
Issue of 218,160,586 shares to CloudCoCo
vendors at 3.3p per share 2,181 5,018 - - - - 7,199
Cancellation of 11,353,255 share warrants
held by MXC Guernsey on acquisition of
CloudCoCo
Ltd - - - - (242) 242 -
Share-based payments - - - - (26) - (26)
-------------------------------------------- -------- -------- ----------- -------- -------- --------- --------
Total transactions with owners 2,681 6,293 - - (1,598) 1,390 8,766
-------------------------------------------- -------- -------- ----------- -------- -------- --------- --------
Total movements 2,681 6,293 - - (1,598) (34) 7,342
-------------------------------------------- -------- -------- ----------- -------- -------- --------- --------
Equity at 31 March 2020 4,952 17,630 6,489 1,997 122 (24,959) 6,231
-------------------------------------------- -------- -------- ----------- -------- -------- --------- --------
Capital
Share Share redemption Merger Other Retained
capital premium reserve reserve reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------------------------- -------- -------- ----------- -------- -------- --------- --------
At 1 April 2020 4,952 17,630 6,489 1,997 122 (24,959) 6,231
-------------------------------------------- -------- -------- ----------- -------- -------- --------- --------
Loss and total comprehensive loss for the
period - - - - - (1,255) (1,255)
-------------------------------------------- -------- -------- ----------- -------- -------- --------- --------
Equity at 30 September 2020 4,952 17,630 6,489 1,997 122 (26,214) 4,976
-------------------------------------------- -------- -------- ----------- -------- -------- --------- --------
Capital
Share Share redemption Merger Other Retained
capital premium reserve reserve reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------------------------- -------- -------- ----------- -------- -------- --------- --------
At 1 October 2020 4,952 17,630 6,489 1,997 122 (26,214) 4,976
-------------------------------------------- -------- -------- ----------- -------- -------- --------- --------
Loss and total comprehensive loss for the
period - - - - - (575) (575)
Share-based payments - - - - (51) - (51)
Total movements - - - - (51) (575) (626)
-------------------------------------------- -------- -------- ----------- -------- -------- --------- --------
Equity at 31 March 2021 4,952 17,630 6,489 1,997 71 (26,789) 4,350
-------------------------------------------- -------- -------- ----------- -------- -------- --------- --------
Consolidated statement of cash flows
for the six month period ended 31 March 2021
Unaudited Unaudited Unaudited 6 months to Audited
6 months to 6 months to 31 March Year to
31 March 30 September 2020 30 September
2021 2020 GBP'000 2020
GBP'000 GBP'000 GBP'000
---------------------------------------- ------------ ------------- -------------------------------- -------------
Cash flows from operating activities
Loss before taxation (669) (1,393) (1,574) (2,967)
Adjustments for:
Depreciation - owned assets 17 8 28 36
Depreciation - right of use assets 30 77 - 77
Amortisation 495 824 799 1,623
Share-based payments (51) - (26) (26)
Net finance expense 279 291 226 517
Costs relating to acquisition of
CloudCoCo Limited - 89 346 435
(Increase) / decrease in trade and other
receivables (292) 502 (567) (65)
(Increase) / decrease in inventories (44) 21 (20) 1
Increase in trade payables, accruals and
deferred income 318 110 756 866
Net cash from / (used in) operating
activities before acquisition costs 83 529 (32) 497
Costs relating to acquisition of
CloudCoCo Limited - (89) (346) (435)
---------------------------------------- ------------ ------------- -------------------------------- -------------
Net cash from / (used in) operating
activities 83 440 (378) 62
---------------------------------------- ------------ ------------- -------------------------------- -------------
Cash flows from investing activities
Purchase of property, plant and
equipment (17) (22) (15) (37)
Acquisition of CloudCoCo Limited, net of
cash acquired - - 157 157
Interest received - - 1 1
---------------------------------------- ------------ ------------- -------------------------------- -------------
Net (used in) / from investing
activities (17) (22) 143 121
---------------------------------------- ------------ ------------- -------------------------------- -------------
Cash flows from financing activities
Proceeds from exercise of BGF share
options - - 175 175
Receipt of loan funds from MXCG - - 100 100
Receipt of loan funds from COVID-19
Bounce Back Loan - 50 - 50
Payment of lease liabilities (72) (134) (49) (183)
Interest paid (7) (20) (28) (48)
Net cash (used in)/ from financing
activities (79) (104) 198 94
---------------------------------------- ------------ ------------- -------------------------------- -------------
Net (decrease) / increase in cash (13) 314 (37) 277
Cash at bank and in hand at beginning of
period 588 274 311 311
---------------------------------------- ------------ ------------- -------------------------------- -------------
Cash at bank and in hand at end of
period 575 588 274 588
---------------------------------------- ------------ ------------- -------------------------------- -------------
Comprising:
Cash at bank and in hand 575 588 274 588
---------------------------------------- ------------ ------------- -------------------------------- -------------
Notes to the consolidated interim financial statements
1. General information
CloudCoCo Group plc (the "Group") is a public limited company
incorporated in England and Wales under the Companies Act 2006. The
address of the registered office is 5 Fleet Place, London, EC4M
7RD.The principal activity of the Group is the provision of IT
Services to small and medium-sized enterprises in the UK. The
financial statements are presented in pounds sterling because that
is the currency of the primary economic environment in which each
of the Group's subsidiaries operates.
2. Basis of Preparation
2.1 Accounting Policies
The accounting policies used in the presentation of the
unaudited consolidated interim financial statements for the six
months ended 31 March 2021 are in accordance with applicable
International Financial Reporting Standards (IFRSs) as applied in
accordance with provisions of the Companies Act 2006. The principal
accounting policies of the Group have been consistently applied to
all periods presented unless otherwise stated.
2.2 Going concern
The Directors have prepared the financial statements on a going
concern basis which assumes that the Group will continue to meet
liabilities as they fall due.
The Directors have reviewed the forecast sales growth, budgets
and cash projections for the period to June 2022. The Directors
have performed sensitivity analysis which reflects uncertainty in
assumptions regarding growth in services and customer projects and
considered that the Group expects to have sufficient cash resources
provided that the MXC Guernsey Limited ("MXCG"), a subsidiary of
MXC Capital Limited ("MXC"), working capital facility is made
available beyond October 2021. At the request of the Directors, MXC
has provided confirmation that it will provide continuing financial
support including the extension of the existing facility until
March 2022. In addition, the Directors have reasonable expectations
that working capital could be raised from other sources including
invoice finance arrangements should it be required.
After reviewing the forecast sales growth, budgets and cash
projections, including sensitivity analysis on the key assumptions
such as the potential impact of COVID-19 on sales, for the next
twelve months and beyond and after taking into account the
assurance of ongoing support from a significant shareholder, which
the Directors reasonably believe has sufficient resources to
provide such support, the Directors have reasonable expectations
that the Group has adequate resources to continue operations for
the foreseeable future, being a period of at least one year from
the date of approval of these unaudited interim financial
statements. The Directors have not identified any material
uncertainties that may cast doubt over the ability of the Group to
continue as a going concern and the Directors continue to adopt the
going concern basis in preparing these unaudited interim financial
statements.
3. Segment reporting
The Chief Operating Decision Maker ("CODM") has been identified
as the executive directors of the Company and its subsidiaries, who
review the Group's internal reporting in order to assess
performance and to allocate resources.
In order to simplify our reporting, the CODM has taken the
decision to condense our reporting segments into two new categories
- Managed IT Services and Value Added Resale.
-- Managed IT Services - this segment provides all forms of
managed services to customers and includes professional
services.
-- Value Added Resale - this segment provides all forms of
product and licence sales procured from supplier partners.
All segments are continuing operations and there are no
transactions between segments.
Unaudited Unaudited Unaudited Audited
6 months 6 months 6 months to Year
to to to
31 March 30 September 31 March 30 September
2021 2020 2020 2020
GBP'000 GBP'000 GBP'000 GBP'000
---------------------- ---------- ------------- ------------- -------------
By operating segment
Managed IT Services 2,910 2,909 3,222 6,131
Valued Added Resale 1,234 631 1,208 1,839
----------------------- ---------- ------------- ------------- -------------
Total revenue 4,144 3,540 4,430 7,970
----------------------- ---------- ------------- ------------- -------------
4. Exceptional Items
Items which are material and non-routine in nature are presented
as exceptional items in the Consolidated Income Statement.
Unaudited Unaudited Unaudited Audited
6 months 6 months 6 months to Year
to to to
31 March 30 September 31 March 30 September
2021 2020 2020 2020
GBP'000 GBP'000 GBP'000 GBP'000
----------------------------------- ---------- ------------- ------------- -------------
Costs relating to the acquisition
of CloudCoCo Limited - (89) (346) (435)
Integration and restructure costs (41) (70) (35) (105)
------------------------------------ ---------- ------------- ------------- -------------
Exceptional items (41) (159) (381) (540)
------------------------------------ ---------- ------------- ------------- -------------
5. Loss per share
Unaudited Unaudited Unaudited Audited
6 months to 6 months to 6 months to Year to
31 March 30 September 31 March 30 September
2021 2020 2020 2020
GBP'000 GBP'000 GBP'000 GBP'000
-------------------------------------------------------------- ------------ ------------ ------------ ------------
Loss attributable to ordinary shareholders (575) (1,255) (1,424) (2,679)
Number Number Number Number
Weighted average number of Ordinary Shares in issue, basic and
diluted 495,225,986 495,225,986 461,720,917) 478,427,400
Basic and diluted loss per share (0.12)p (0.25)p (0.31)p (0.56)p
-------------------------------------------------------------- ------------ ------------ ------------ ------------
6. Intangible assets
Intangible assets are non-physical assets which have been
obtained as part of an acquisition or research and development
activities, such as innovations, introduction and improvement of
products and procedures to improve existing or new products. All
intangible assets have an identifiable future economic benefit to
the Group at the point the costs are incurred. The amortisation
expense is recorded in administrative expenses in the Consolidated
Income Statement
IT, billing and
website Customer
Goodwill systems Brand lists Total
Intangible assets GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------------------------------- -------- --------------- -------- -------- --------
Cost
At 1 October 2019 4,447 182 1,157 7,580 13,366
Additions - acquisition of CloudCoCo Limited 3,845 - 700 3,400 7,945
---------------------------------------------- -------- --------------- -------- -------- --------
At 31 March 2020 8,292 182 1,857 10,980 21,311
Additions - acquisition of CloudCoCo Limited 1,543 - (200) (1,700) (357)
---------------------------------------------- -------- --------------- -------- -------- --------
At 30 September 2020 9,835 182 1,657 9,280 20,954
Additions - - - - -
--------------------------------------------- -------- --------------- -------- -------- --------
At 31 March 2021 9,835 182 1,657 9,280 20,954
---------------------------------------------- -------- --------------- -------- -------- --------
Accumulated amortisation
At 1 October 2019 - (47) (380) (2,680) (3,107)
Charge for the period (249) (9) (81) (460) (799)
-------------------------- ----- ----- ------- ------- -------
At 31 March 2020 (249) (56) (461) (3,140) (3,906)
Charge for the period 249 (102) (517) (454) (824)
-------------------------- ----- ----- ------- ------- -------
At 30 September 2020 - (158) (978) (3,594) (4,730)
-------------------------- ----- ----- ------- ------- -------
Charge for the period - (6) (25) (464) (495)
-------------------------- ----- ----- ------- ------- -------
At 31 March 2021 - (164) (1,003) (4,058) (5,225)
-------------------------- ----- ----- ------- ------- -------
Impairment
At 1 October 2019 (4,447) -(225) (1,193) (5,865)
Charge for the period - - - - -
---------------------- ------- ----- ------- -------
At 31 March 2020 (4,447) -(225) (1,193) (5,865)
Charge for the period - - - - -
---------------------- ------- ----- ------- -------
At 30 September 2020 (4,447) -(225) (1,193) (5,865)
----------------------- ------- ----- ------- -------
Charge for the period - - - - -
---------------------- ------- ----- ------- -------
At 31 March 2021 (4,447) -(225) (1,193) (5,865)
----------------------- ------- ----- ------- -------
Carrying amount
At 31 March 2021 5,388 18 429 4,029 9,864
---------------------- ----- --- ----- ----- ------
At 30 September 2020 5,388 24 454 4,493 10,359
---------------------- ----- --- ----- ----- ------
At 31 March 2020 3,596 126 1,171 6,647 11,540
---------------------- ----- --- ----- ----- ------
For the purposes of assessing impairment, assets are grouped at
the lowest levels for which there are separately identifiable cash
flows - cash generating units ("CGU"). The Group operates as a
single business and there is a single CGU. For each reporting
period , management compares the resulting cash flow projections
using a value in use approach to assess the recoverable amount of
the CGU to the carrying value of goodwill. Any material variance in
this calculation results in an impairment charge to the
Consolidated Income Statement.
The calculations used to compute cash flows for the CGU level
are based on the Group's budget, growth rates, weighted average
cost of capital ("WACC") and other known variables. The
calculations are sensitive to movements in both WACC and the
revenue growth projections. The current effective unsecured pre-tax
borrowing rate is calculated at 12% per annum (FY20:12%) and the
revenue growth rate is 5% per annum (FY20: 5%) for 5 years and a
terminal growth rate of 2% (FY20: 2%) per annum. Sensitivities have
been run on cash flow forecasts for the CGU. Management is
satisfied that the key assumptions of revenue and EBITDA growth
rates should be achievable and that reasonably possible changes to
those key assumptions would not lead to the carrying amount
exceeding the recoverable amount. Sensitivity analyses have been
performed and the table below summarises the effects of changing
certain key assumptions and the resultant excess (or shortfall) of
discounted cash flows against the aggregate of goodwill and
intangible assets.
Sensitivity analysis CloudCoCo Group plc
GBP'000
------------------------------------------------------------------ -------------------
Excess of recoverable amount over carrying value:
Base case - headroom 4,169
Discount rate increased by 1% - resulting headroom 1,156
Revenues growth rate reduced by 1% per annum - resulting headroom 1,166
-------------------------------------------------------------------- -------------------
Base case calculations highlight that the impairment review is
sensitive to the discount rate and growth rate. Given the Group's
value proposition is centred around generating monthly recurring
fees for IT and communication solutions, the Directors are
satisfied that the Group's objectives are to maximise the cash
flows generated through the sales of Recurring Services.
In determining whether intangible assets including goodwill were
impaired, the Directors estimated the discounted future cash flows
associated with the intangible assets over a ten-year period, using
a discount rate equivalent to the WACC. The Directors also
considered the impact of the customer notices of termination
received and the improvement in Trading EBITDA during the year as
indicators that there is no impairment of intangible assets.
7. Trade and other receivables
Unaudited
Unaudited 31 31 Audited
March March 30
2021 2020 September 2020
GBP'000 GBP'000 GBP'000
---------------------------- ------------ --------- ---------------
Trade receivables 1,041 1,339 985
Other Debtors 13 13 6
Contract assets 202 269 101
Prepayments 892 833 764
---------------------------- ------------ --------- ---------------
Trade and other receivables 2,148 2,454 1,856
---------------------------- ------------ --------- ---------------
8. Trade and other payables
Unaudited Unaudited Audited
31 March 31 March 30
2021 2020 September 2020
GBP'000 GBP'000 GBP'000
-------------------------------------- --------- --------- ---------------
Trade payables 1,551 1,541 1,388
Accruals 407 333 460
Other taxes and social security costs 524 388 617
-------------------------------------- --------- --------- ---------------
2,482 2,262 2,465
-------------------------------------- --------- --------- ---------------
9. Borrowings
9.1 Current
Unaudited Unaudited Audited
31 March 31 March 30
2021 2020 September 2020
GBP'000 GBP'000 GBP'000
--------------------------------------------------------- --------- --------- ---------------
COVID-19 Bounce-back loan repayable - short-term element 9 - 4
MXC Guernsey Limited working capital facility 100 - 100
--------------------------------------------------------- --------- --------- ---------------
109 - 104
--------------------------------------------------------- --------- --------- ---------------
MXCG provide a GBP0.5 million working capital facility of which
GBP0.1 million had been drawn down at 31 March 2021. There are no
set repayment terms but interest is payable at 12% per annum on
drawn down amounts. This facility is set to expire in October 2021
but MXCG has confirmed it will extend to March 2022.
9.2 Non-current
Unaudited Unaudited
31 March 31 March Audited
2021 2020 30 September 2020
GBP'000 GBP'000 GBP'000
----------------------------------------------------------------- --------- --------- ------------------
Loan notes 3,045 2,983 3,014
Accrued interest on loan notes repayable in October 2024 633 268 398
----------------------------------------------------------------- --------- --------- ------------------
Loan notes 3,678 3,251 3,412
COVID-19 Business Bounce-back loan repayable - long-term element 41 - 46
----------------------------------------------------------------- --------- --------- ------------------
3,719 3,251 3,458
----------------------------------------------------------------- --------- --------- ------------------
On 10 May 2020, the Company borrowed GBP50,000 from HSBC Bank UK
Plc, under the COVID-19 Business Bounce-back loan scheme. In
accordance with the UK Government's Business Interruption Payment
scheme, the interest on the loan for the first 12 months is covered
by the UK Government and the Company will repay the loan in 59
equal monthly instalments, commencing June 2021.
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END
IR FFFLLRVITIIL
(END) Dow Jones Newswires
June 09, 2021 02:01 ET (06:01 GMT)
Adept4 (LSE:AD4)
過去 株価チャート
から 11 2024 まで 12 2024
Adept4 (LSE:AD4)
過去 株価チャート
から 12 2023 まで 12 2024
