29 Sep 2023 07:00
29 September 2023
Catenae Innovation PLC
("Catenae", the "Company" or the "Group")
Half Year Results
Convertible Loan Update
Catenae Innovation PLC (AIM: CTEA), the AIM quoted provider of digital media and technology, announces its half-yearly report for the six months ended 30 June 2023.
As this is the first six months since the change of the year-end to 31 December, comparative figures are for the six months to 31 March 2022.
Financial overview
· Loss of £185,267 in the period under review (2022: £287,168) with revenues of £22,173 (2022: £17,500).
· Net (liability)/asset position £(314,846) (2022: £110,033).
Post period end
· As announced on 6 September 2023, the Company's 51% subsidiary ceased trading due to losses incurred.
The Company continues to carefully manage its working capital position.
Convertible Loan Update
As announced on 30 September 2022, the Company entered into an agreement for a convertible loan facility for up to £250,000 ("Convertible Loan") with Sanderson Capital Partners Limited ("Sanderson Capital"), which consists of an initial drawdown of £125,000 followed by a further drawdown expected three months thereafter.
As at 30 June 2023, an advance of £30,000 had been received against the £125,000 and no shares or warrants issued. As at 28 September 2023, a total advance of £61,000 had been received against the £125,000 and no shares or warrants have been issued.
At each £125,000 drawdown, the Company will issue new ordinary shares to Sanderson Capital equal to 10 percent of the drawdown value at an issue price of the 10-day volume weighted average price prior to the date of drawdown. A further announcement will be made on the date of each drawdown event.
Sanderson Capital will be able to convert part or all of the Convertible Loan facility in minimum increments of £5,000, with the conversion price being fixed at the lower of i) 0.25p; or ii) 90% of the 5-day volume weighted average price from the first day of dealings of the Company's restoration to trading on AIM. The Convertible Loan facility is interest-free.
As part of the Convertible Loan facility agreement, Sanderson Capital will be issued new ordinary shares and a warrant over new ordinary shares in the Company, of which the issue price and exercise price is 0.25 pence per share, being the closing mid-price of the Company's ordinary shares on 30 September 2022, the first day of dealings following the release of the Company's final results for the year ended 30 September 2021, and the interim results for the period ended 31 March 2022 which enabled the lifting of the suspension and restoration to trading of the Company's ordinary shares on AIM.
The new ordinary shares and warrants over new ordinary shares will be issued after the next general meeting of the Company and a further announcement setting out the details will be made at the time of issue.
This announcement contains inside information for the purposes of the UK Market Abuse Regulation. The person who arranged for release of this announcement on behalf of the Company was Guy Meyer, Chief Executive Officer of the Company and the Directors of the Company are responsible for the release of this announcement.
For further information please contact:
Catenae Innovation PLC | +44 (0)191 580 8545 |
Guy Meyer, Chief Executive Officer | |
Cairn Financial Advisers LLP (Nominated Adviser) | +44(0)20 7213 0880 |
Liam Murray / Jo Turner | |
Shard Capital Partners LLP (Broker) | +44 (0)20 7186 9952 |
Damon Heath | |
Notes to Editors:
About Catenae Innovation PLC
Catenae Innovation is an AIM quoted provider of digital media and technology services. The Company specialises in Distributed Ledger Technology solutions that solve commercial challenges and create opportunities for its clients. The Company has an experienced IT team of project managers and integrators who have deployed systems across corporate, government and educational sectors.
www.catenaeinnovation.com
Consolidated Statement of Comprehensive Income
For the Period Ended 30 June 2023
| Unaudited six months ended 30 June 2023
£ | Unaudited six months ended 31 March 2022
£ | Audited year ended 31 December 2022
£ |
Revenue |
22,173 |
17,500 |
152,437 |
Cost of sales |
(2,315) |
(6,000) |
(12,600) |
Gross profit |
19,858 |
11,500 |
139,837 |
Administrative expenses |
(205,125) |
(298,668) |
(667,002)
|
| |||
Loss from operations |
(185,267) |
(287,168) |
(527,165) |
Net Finance income/(expense) |
- |
- |
- |
| |||
Loss before taxation |
(185,267) |
(287,168) |
(527,165) |
Taxation |
- |
- |
3,668 |
Total comprehensive loss for the year |
(185,267) |
(287,168) |
(523,497) |
|
| ||
Loss attributable to: |
|
| |
Owners of the parent | (183,023) | (280,260) | (514,695) |
Non-controlling interest | (2,244) | (6,908) | (8,802) |
Consolidated Statement of Financial Position
For the Period Ended 30 June 2023
Unaudited six months ended 30 June 2023
£ | Unaudited six months ended 31 March 2022
£ | Audited year ended 31 December 2022
£ | ||
Non-current assets |
|
|
| |
Tangible Assets | 4,345 | 6,518 | 5,431 | |
Intangible assets | 1 | 1 | 1 | |
4,346 | 6,519 | 5,432 | ||
Current assets |
| |||
Trade and other receivables | 17,893 | 30,514 | 81,913 | |
Cash and cash equivalents | 2,015 | 337,183 | 65,443 | |
19,908 | 367,697 | 147,356 | ||
Current liabilities | ||||
Trade and other payables | (339,100) | (264,183) | (279,086) | |
(339,100) | (264,183) | (279,086) | ||
|
|
| ||
Non-current liabilities |
|
|
| |
Interest-bearing loans | - | - | - | |
Total Liabilities | (339,100) | (264,183) | (279,086) | |
|
|
| ||
Net Assets/(Liabilities) | (314,846) | 110,033 | (126,298) | |
Non-controlling Interest | 472 | 4,611 | 2,716 | |
Capital and reserves attributable to equity holders of the company | ||||
Ordinary share capital | 570,078 | 570,078 | 570,078 | |
Deferred share capital | 3,159,130 | 3,159,130 | 3,159,130 | |
Share premium account | 19,665,457 | 19,665,457 | 19,665,457 | |
Share reserve | (83,333) | (83,333) | (83,333) | |
Merger reserve | 11,119,585 | 11,119,585 | 11,119,585 | |
Capital Redemption Reserve | 2,732,904 | 2,732,904 | 2,732,904 | |
Retained losses | (37,479,139) | (37,058,399) | (37,292,835) | |
Total Equity |
(314,846) |
110,033 |
(126,298) |
Consolidated Statement of Cash Flows
For the Period Ended 30 June 2023
Unaudited six months ended 30 June 2023
£ | Unaudited six months ended 31 March 2022
£ | Audited year ended 31 Dec 2022
£ | |
Loss for the period |
(185,267) |
(287,168) |
(523,497) |
Adjustments for: | |||
Impairment of investments | - | - | - |
Depreciation | 1,086 | - | 1,810 |
Net (loss) before changes in working capital |
(184,181) |
(287,168) |
(521,687) |
(Increase) / decrease in trade and other receivables |
64,019 |
15,034 |
(36,677) |
(Decrease) / increase in trade and other payables |
56,734 |
(11,038) |
3,865 |
Cash from operations |
(63,428) |
(283,172) |
(554,499) |
Interest received |
- |
- |
- |
Interest paid | - | - | - |
Net cash flows from operating activities |
(63,428) |
(283,172) |
(554,499) |
Investing activities |
|
|
|
Purchase of plant and equipment | - | - | (413) |
Net cash flows from investing activities |
- |
- |
(413) |
Financing Activities |
| ||
Issue of ordinary share capital | - | 15,273 | 15,273 |
Repayment of loans | - | - | - |
New loans raised | - | - | - |
Net cash flows from financing activities |
- |
15,273 |
15,273 |
Net increase / (decrease) in cash |
(63,428) |
(267,899) |
(539,639) |
Cash and cash equivalents at beginning of period |
65,443 |
605,082 |
605,082 |
Cash and cash equivalents at end of period |
2,015 |
337,183 |
65,443 |
Company Statement of Financial Position
For the Period Ended 30 June 2023
Unaudited six months ended 30 June 2023
£ | Unaudited six months ended 31 March 2022 £ | Audited year ended 31 December 2022
£ | ||
Non-current assets |
|
|
| |
Intangible assets | 1 | 1 | 1 | |
1 | 1 | 1 | ||
Current assets |
| |||
Trade and other receivables | 13,864 | 24,242 | 74,745 | |
Cash and cash equivalents | 99 | 332,209 | 61,922 | |
13,963 | 356,451 | 136,667 | ||
Current liabilities | ||||
Trade and other payables | (366,493) | (255,828) | (308,508) | |
(366,493) | (255,828) | (308,508) | ||
|
|
| ||
Non-current liabilities |
|
|
| |
Interest-bearing loans | - | - | - | |
Total Liabilities | (366,493) | (255,828) | (308,508) | |
|
|
| ||
Net Assets/(Liabilities) | (352,529) | 100,624 | (171,840) | |
Capital and reserves attributable to equity holders of the company | ||||
Ordinary share capital | 570,078 | 570,078 | 570,078 | |
Deferred share capital | 3,159,130 | 3,159,130 | 3,159,130 | |
Share premium account | 19,665,457 | 19,665,457 | 19,665,457 | |
Share reserve | (83,333) | (83,333) | (83,333) | |
Merger reserve | 11,119,585 | 11,119,585 | 11,119,585 | |
Capital Redemption Reserve | 2,732,904 | 2,732,904 | 2,732,904 | |
Retained losses | (37,516,350) | (37,063,197) | (37,335,661) | |
Total Equity |
(352,529) |
100,624 |
(171,840) |
Company Statement of Cash Flows
For the Period Ended 30 June 2023
Unaudited six months ended 30 June 2023
£ | Unaudited six months ended 31 March 2022
£ | Audited year ended 31 Dec 2022
£ | |
Loss for the period |
(180,690) |
(273,069) |
(545,533) |
Adjustments for: Impairment of investment |
- | ||
Net (loss) before changes in working capital |
(180,690) |
(273,069) |
(545,533) |
(Increase) / decrease in trade and other receivables |
60,882 |
20,995 |
(29,509) |
(Decrease) / increase in trade and other payables |
57,985 |
29,168 |
81,849 |
Cash from operations |
(61,823) |
(222,906) |
(493,193) |
Interest received |
- |
- |
- |
Interest paid | - | - | - |
Net cash flows from operating activities |
(61,823) |
(222,906) |
(493,193) |
Financing Activities |
| ||
Issue of ordinary share capital | - | 15,273 | 15,273 |
Repayment of loans | - | - | - |
New loans raised | - | - | - |
Net cash flows from financing activities |
- |
15,273 |
15,273 |
Net increase / (decrease) in cash |
(61,823) |
(207,633) |
(477,920) |
Cash and cash equivalents at beginning of period |
61,922 |
539,842 |
539,842 |
Cash and cash equivalents at end of period |
99 |
332,209 |
61,922 |
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identi?ed by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect", ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements re?ect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.