(Alliance News) - Dev Clever Holdings PLC on Friday said its loss widened sharply in its most recent financial year following a software impairment and share-based payment expenses.
Shares in Dev Clever were down 6.5% at 3.18 pence in London in afternoon trading.
The company, which develops career guidance platforms and listed on the London Stock Exchange in January 2019, reported an annual loss for its year ended October 31 of GBP1.0 million, almost doubling the GBP509,937 loss posted for 2018.
Dev Clever said the loss included GBP110,000 worth of share-based payment expenses, compared to not such expense the year before and a USD174,000 impairment on its internally developed software, again with no comparable impairment in 2018.
The software impairment resulted from Dev Clever's decision to defer development of virtual reality gaming to focus on its Launchyourcareer.com platform and the "VICTAR VR virtual reality careers experience". Given the uncertainty of future gaming revenue, it decided to fully impair the carrying value of gaming experiences.
"The loss in the period is higher than the management's expectations at the time of the [initial public offering] and reflects a longer than expected lead time in both the establishment of the group's new commercial partnerships and their commercial exploitation," Dev Clever said.
Chief Executive Chris Jeffries commented on the company's decision to restructure its operations in order to "focus upon the Educate market as its primary division, whilst merging other operations into a new Agency Services division, which will look to invest in existing commercial relationships to drive sales performance."
Jefferies said: "This revised structure combined with the additional funding raised since the year end, the launch of Launchyourcareer.com and VICTAR VR in the USA in April and an improved trading position since the year end, provide the Board with confidence for the outlook for 2020."
Dev Clever will hold its annual general meeting on March 26.
By Anna Farley; annafarley@alliancenews.com
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