17 Apr 2023 07:00
17 April 2023
DeepVerge plc
("DeepVerge" or "the Company" or "the Group")
2022 revenue update - revision
DeepVerge (AIM: DVRG), the environmental and life science group of companies that develops and applies AI and IoT technology to analytical instruments for the analysis and identification of bacteria, virus and toxins, provides the following trading update.
On 9 January 2023 the Company announced that it expected 2022 (unaudited) revenues to be approximately £17.2m. Following the board change announced on 6 February 2023, and the appointment of a new Chief Financial Officer on 7 February 2023, the new management team has undertaken a comprehensive review of all major contracts.
Whilst further analysis continues, based on the current available information and analysis to date, it is clear that revenues for a number of contracts have been incorrectly recognised in excess of works completed and therefore revenues for 2022 under the relevant accounting standard IFRS15 are expected to be approximately 45-50% of the £17.2m revenue figure provided by the previous executive management team and notified to the market.
The vast majority of the revenue shortfall in 2022 is now expected to be recognised in 2023, although some is unlikely to be realised.
Following the above review, the Company can confirm that the current order book for Modern Water and Glanaco exceeds £10m, all of which is expected to be deliverable, and recognised as turnover, in 2023 and 2024. Further contracts are being sought, and, if tendering is successful, will be announced in due course, with some expected imminently.
The current cash balance is approximately £1m, and although requiring working capital to be tightly managed is expected to remain sufficient for the Company to continue as a going concern. The Company is exploring funding options including trade finance as a stronger balance sheet would enable the Company to accelerate delivery of some existing contracts and increase confidence in seeking new business.
The Company will make further announcements in due course.
Ross Andrews, Chairman, commented:
"Whilst it is extremely disappointing that 2022 revenues are likely to be so far below the figures provided by the previous executive management team, I'm confident that the new management has robust plans in place to deliver the order book during 2023 and 2024."
DeepVerge plc | Nigel Burton, Interim CEO | +44 (0) 7785 234447 |
SPARK Advisory Partners Limited (Nominated Adviser) | Neil Baldwin | +44 (0) 113 370 8974 |
Turner Pope Investments (TPI) Limited (Broker) | Andy Thacker/James Pope | +44 (0) 20 3657 0050 |
About DeepVerge plc (www.deepverge.com)
DeepVerge is an environmental and life science group of companies that develops and applies AI and IoT technology to analytical instruments for the analysis and identification of bacteria, virus and toxins; Utilising artificial intelligent data analytics to scientifically prove the impact of skincare product claims on skin.
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