Last checked at 20 Dec 2023 07:00
20 December 2023
i-nexus Global plc
("i-nexus", the "Company" or the "Group")
Final Results
i-nexus Global plc (AIM: INX), a leading provider of cloud-based strategy applications designed for the Global 5000, today provides its audited results for the year ended 30 September 2023 ("FY23").
Financial Highlights
· Monthly recurring revenue ("MRR"), the key financial metric for the Group, grew by 16% in the year to £289k at 30 September 2023 (30 September 2022: £250k) as the business delivered a second year of improved double-digit growth
· Net retention1 in the period improved to 107% (FY22: 98%), highlighting both the increasing strength of our client relationships and the quality of our product
· Total revenue, 92% of which is recurring, increased by 13% to £3,528k (FY22: £3,127k) as a consequence of the new business and account expansion successes since the start of 2022
· Adjusted EBITDA2 loss for the period has reduced against prior period levels to £499k (FY22: £552k), with the increase in revenue being partially netted against the full-year cost impact of the select investments made towards the end of FY22 considered fundamental to the Group realizing the market opportunity
· Cash and cash in transit3 at the period end improved to £267k (30 September 2022: £99k), with the Group continuing with its plan of deferring the placement of additional investment until such time that the business delivers a position of at least Adjusted EBITDA breakeven
· The Group reported a loss before taxation for the year of £982k (FY22: loss of £1,105k).
· In July 2023, the Company raised £500k by way of Convertible Loan Notes from its supportive shareholder base, strengthening its cash position for FY24
Strategic progress and operational highlights
· Successfully delivered on the two-year go-to-market objective of achieving back-to-back years of improved double-digit MRR growth through our land and expand customer strategy
· A key highlight of this strategy was over 70% of new logos signed in the last two years have expanded their use of the solution by an average value of 66% since onboarding
· Seven new logos secured in the year (2022: nine) delivering £23k MRR (FY22: £30k MRR), with equivalent levels of expansion opportunity in these accounts through FY24 to customers signed in the last two years
· New customers span several new industries and countries, demonstrating our ability to adapt and cater to diverse markets. This is testament to our belief that all companies, regardless of their industry or size, can benefit from a well-executed strategy
· Establishment of a growing partner programme, several agreements signed with consulting firms in the year resulting in our first new logos secured via the partner route
· The Group continues to explore opportunities for product innovation, with progress in FY23 culminating in the successful completion of several "proof of concepts" for new products, which are set to be trialled with new customers during FY24
?Outlook
· The Group has developed a new three-year strategy, focusing on enhancing our product suite's capabilities. This strategic approach is designed to expedite our customers' path to real value, allowing them to prioritize processes over tools
· New businesses successes in the first months of the year include two new customer wins and an expansion with a key client generating £12k MRR, with a further opportunity moving into the contracting phase
· As previously announced, one significant legacy customer, currently generating MRR of £54k, will not be renewing its contract with i-nexus from January 2024. The Company has swiftly implemented mitigation strategies to protect cash flows and minimise the impact on its progression towards an EBITDA breakeven position
· Business is well positioned to capitalise on the continued rise in interest for a strategy execution software solution as companies across all industries accelerate the digitization of mission-critical processes in this post-pandemic era
Commenting on the results, Simon Crowther, Chief Executive Officer, said: -
"I am pleased to share with you the encouraging progress i-nexus has made over the past year, marking the conclusion of our two-year strategy. The focus of this strategy was the decision to revise our go-to-market approach, shifting our marketing focus to a content-led strategy and deliberately securing smaller initial deals, servicing limited business areas or teams within the customer where demonstration of value would lead to the potential for significant expansion opportunities.
"Under this approach, the Group has successfully delivered a consistent volume of such logos (seven in FY23 and nine in FY22), expanding the use of the solution in over 70% of the accounts signed across FY21 and FY22, with an average MRR growth value of 66% since signing date. These successes have culminated in the Group achieving one of its key financial goals of delivering back-to-back years of improved double-digit MRR growth, with a 16% increase in FY23 (FY22: 12%) to a year-end exit rate of £289k (30 September 2022: £250k, 30 September 2021: £223k).
"The increasing interest in strategy execution, our growing confidence in lead nurturing and generation, our ongoing product improvements, and the heightened engagement from our partners all fuel our optimism for delivering incremental growth in customer numbers and upsells. These factors collectively contribute to our positive outlook for the future."
For further information please contact:
i-nexus Global plc Simon Crowther, CEO Drew Whibley, CFO | Via: Alma |
Singer Capital Markets (Nominated Adviser and Broker) Sandy Fraser / Alex Bond (Corporate Finance) | Tel: +44 (0)207 496 3000 |
Alma Strategic Communications Caroline Forde / Robyn Fisher | Tel: +44 (0)203 405 0205 |
About i-nexus Global plc
i-nexus Global plc ("i-nexus") helps companies accelerate business outcomes through robust strategic planning, predictable project portfolio delivery, and real-time performance tracking to ensure results are achieved. i-nexus' strategy applications replace spreadsheets and presentations with a single application that promotes collaboration, alignment, and communication in the pursuit of improved business outcomes, while providing resource and accompanying cost efficiencies.
Today, we support organisations in managing over 200,000 strategic programmes around the world.
Throughout this announcement:
1 Net Retention is measured by the total of on-going MRR at the period-end from clients in place at the start of the period as a percentage of the opening MRR from those clients.
2 Adjusted EBITDA excludes the impact of any impairment, loss on disposal of assets, share based payment expenses and non-underlying items
3 Cash and cash in transit includes the combined value of cash and cash equivalents and cash in transit classified within trade and other receivables
Chairman's Statement
In my previous Chairman's statement I discussed the challenges that i-nexus faced as global economies recovered from the Covid-19 pandemic and we all faced new challenges from global economic disruption. Few commentators envisaged not only the severity of the economic ructions but also the global political uncertainty, in Europe, Africa, China and the Middle East. Despite these challenges many industries have recovered and continue to do so in what has been a high inflation environment.
The impact for i-nexus has been that we have continued to win new customers and that some of our most engaged customers have or are looking to substantially increase their use of our software. Our customers are looking to speed up delivery across all aspects of their businesses, whether it is production, supply chains, yields, marketing and sales to name just a few areas. The use of products such as i-nexus helps our customers achieve these fundamental business improvement aims and increase their ability to achieve their strategic goals with relative ease.
Our core product, Workbench, is one of the leading products to automate the deployment of strategy across complex enterprises and once deployed in scale it is critical to large customers gaining visibility of progress towards their objectives. It is increasingly clear that all our major customers have their own unique strategy execution models, in many cases based around established models such as Hoshin Kanri or OKR (Objectives and Key Results) but almost always adjusted to the customer's particular requirements. We incorporate much of the functionality required by our customers to automate their strategic processes and we continue to strive to make it faster and easier to deliver business value. We are looking at how our customers, existing and new, can engage faster, deploy quicker and reap benefits from the outset of an i-nexus deployment, reducing the risk of a lengthy time to value and speeding up the demand from customers for additional licences. We continue to ensure our efforts are aligned to addressing this fundamental challenge.
Although i-nexus has no direct dependency upon raw materials, high inflation has had a significant impact on our staff, the lifeblood of a software business. Our staff remain extremely loyal to the business and in turn we have tried wherever possible to ensure remuneration packages remain competitive. We must continue to retain vital talent in the business.
I am cognisant of the current market capitalisation of the business which, in my view, does not reflect the quality of the Company's products, the expertise within the staff, nor the quality of the customer base. The business and core product, Workbench, have continued to make progress during FY23 but we remain an extremely small Company in the quoted arena. We have little option but to continue to focus on how to grow faster, getting the business profitable and finding ways in which stability can be enhanced. The Board of Directors and myself continue to strive to achieve these aims as quickly and effectively as possible. With Government increasingly interested in encouraging institutional investors to support small UK businesses building for the long term, we remain alert to all opportunities to accelerate the growth of i-nexus.
Once again I would like to take this opportunity to thank our loyal staff, customers and shareholders for their support and I look forward to FY24 and the continued development of our products to solve our customers challenging business needs.
Richard Cunningham
Chairman
Chief Executive Officer's Report
Overview
I am pleased to share with you the encouraging progress i-nexus has made over the past year, marking the conclusion of our two-year strategy which was developed following the global challenges brought on by the Covid-19 pandemic.
The focus of this strategy was the decision to revise our go-to-market approach, shifting our marketing focus to a content-led strategy and deliberately securing smaller initial deals, servicing limited business areas or teams within the customer where demonstration of value would lead to the potential for significant expansion opportunities.
Under this approach, the Group has successfully delivered a consistent volume of such logos (seven in FY23 and nine in FY22), expanding the use of the solution in over 70% of the accounts signed across FY21 and FY22, with an average MRR growth value of 66% per logo since signing date.
These successes have culminated in the Group achieving one of its key financial goals of delivering back-to-back years of improved double-digit MRR growth, with a 16% increase in FY23 (FY22: 12%) to a year-end exit rate of £289k (30 September 2022: £250k, 30 September 2021: £223k).
Supplementing this result has been the establishment of our partner programme, providing a new path to market for the business beyond our internal team, with several consulting firms signing agreements in the year. These partners endorse our solutions to their clients, thereby providing us with additional opportunities, with our first partner-led deals being secured in FY23 and a further one in Q1 FY24. The continued growth and development of this programme is seen as a strategic priority for the forthcoming year.
Our accomplishments are a reflection of our strategic focus and the market opportunity that lies ahead. The business is optimistic about the direction in which it is heading and we eagerly anticipate sharing our continued progress.
Trading
The business continued to deliver a steady flow of new logos this year with the addition of seven accounts (FY22: nine) generating £23k of MRR (FY22: £30k MRR). Whilst these were contracted at a marginally lower initial average value to the prior year, the opportunity for expansion is equivalent to the profile of accounts signed in the prior year.
Encouragingly, our new customers span a variety of new industries and countries outside of our key markets, reflecting our capability to cater to diverse markets. This diversity underpins our conviction that all companies, irrespective of their industry or size, can reap the benefits of a well-executed strategy.
A highlight of this year, and a key strategic objective, has been the level of expansion within existing accounts, which totalled £36k of MRR (FY22: £10k). As a consequence of this growth, net retention (measured by the total value of on?going MRR at the period?end from clients in place at the start of the period as a percentage of the opening MRR from those clients) grew to 107%, up from 98% in the previous year.
While the delivery of several operational and financial goals represents a successful outcome of the Group's two-year strategy, especially considering the impact of the pandemic, we recognise that the business has significant potential for far greater market penetration. The Group's new three-year plan, summarised within the Strategic Focus section of this report, has been developed to capitalise on this potential, with particular focus on serving an increasing proportion of businesses that are eager to deliver value with minimal implementation requirements.
Market Opportunity
In today's dynamic business landscape, success hinges on more than just setting goals-it's about executing them swiftly, with keen insight, and across intricate ecosystems. At i-nexus, we recognise this challenge, and our Strategy Execution Management (SEM) software is purpose-built to deliver substantial value.
Bridging Strategy and Execution:
Our SEM software category continues to evolve and gain traction as companies hasten to digitalise mission-critical processes in this post-pandemic era. We believe that strategy without execution is merely a wish, and execution without strategy lacks direction. Our mission is to bridge this gap, providing a seamless platform where strategy and operations converge. Key aspects of our solution are:
· Agility at Pace: Organisations need to move swiftly. Our platform ensures that strategy execution keeps pace with the ever-changing business environment.
· Insightful Visibility: In complex ecosystems, visibility is paramount. i-nexus provides high-level transparency, allowing leaders to track performance seamlessly.
· Collaboration at the Core: We foster collaboration across teams, departments, and even entire organisations. Our platform ensures that everyone is aligned, working toward common goals.
· Strategy Meets Operations: We seamlessly integrate strategic planning with operational execution. No more silos-just a holistic view of progress.
Growth Indicators:
· Active Buyers on G2: We have seen a remarkable surge in businesses looking for a strategy solution on the world's largest tech marketplace - a staggering 222% increase since 2018.
· Web Traffic Surge: At i-nexus, our web traffic has skyrocketed. We've experienced a outstanding 561% growth since 2018. This surge aligns perfectly with the escalating demand for effective strategy execution.
· Sales Momentum: Our efforts translate into results. Sales accepted leads have risen by 50% since 2018.
Industry Validation:
· Gartner's Stamp of Approval: Strategic Portfolio Management, a cornerstone of our offering, has been validated and accepted. Organisations now focus on organisational readiness, recognising the value of solutions like ours.
· McKinsey's Insight: The rise of remote teams underscores the need for software that facilitates seamless strategy execution and collaboration. We're positioned to meet this demand head-on.
The market opportunity before us is substantial and expanding. As we navigate this exciting landscape, i-nexus stands ready to empower organisations worldwide.
People
The Board extends its heartfelt gratitude to our employees for their unwavering support and dedication to the business and our customers. Their commitment is reflected in the successes we have achieved. At i-nexus, we are fortunate to have a team of talented and devoted individuals who work together towards a common goal, consistently delivering results. Their collective efforts are the driving force behind our accomplishments.
Strategic Focus
As we transition from our successful two-year strategy, we embark on a new three-year plan that is positioned around three key themes:
1. Customer Experience and Engagement: We will help deliver strategic value by finding new ways to encourage user adoption, making our products more engaging and enjoyable, and offering obligation-free trials of our software. The business will also focus on enabling customer self-service, from onboarding to expansion with a key component being to ensure configuration is more accessible.
2. Product Enhancement: i-nexus is committed to leveraging modern, cloud-native technology to help simplify development and maintenance. The business will provide our customers with rich, out-of-the-box visualisations and analytics, and gradually transition our products to self-serve account management.
3. Strategic Planning and Execution: Focus placed on helping customers orchestrate and "do the work" in-between data entry and reporting insight. This is particularly true in the execute phase of Strategy. On the other end of the spectrum, the business acknowledges the growing interest in capabilities around formulating strategies before strategic planning.
These themes represent our overarching goals for the next three years and provide a clear direction for our efforts as we continue to delivery on going value to our customers and evolve in the marketplace.
In terms of 2024, our strategic focus will be on four key areas that will drive our growth:
1. More efficient go-to-market (GTM) approach: We aim to enhance our efficiency in delivering new growth while addressing the challenge of lengthy sales cycles, ensuring a more streamlined and agile process.
2. Develop compelling customer case studies: We will further strengthen our understanding of their needs and maximise our impact on their businesses. We plan to go live with a streamlined set of customer value metrics generating insightful case studies.
3. Deliver enhanced/optimised management Workbench capability: Having worked closely with customers and prospects, development of several stories which are key areas of improvement.
4. Capitalise on successful proof of concepts: The business continues to explore opportunities for product innovation. With several "proof of concept" products successfully concluded, we will trial these innovations with new customers.
Outlook
The business is off to a promising start this year, with our core use cases consistently delivering progress. The active trials of our platform by potential customers, coupled with the growing expansion opportunities within our existing customer base, are encouraging signs. We've kicked off the year on a positive note, securing a new customer win and an expansion with a key client, and we have two more promising opportunities moving into the contracting phase.
While we did experience the loss of a significant, albeit legacy, customer, we swiftly implemented mitigation strategies to protect our cash flows and minimise the impact on our progress towards an EBITDA breakeven position. This loss, while unfortunate, has allowed us to shift our focus entirely to our newer systems, propelling us forward.
Our attention remains firmly on ensuring the adequacy of our cash resources and executing mindful investment decisions as we steer i-nexus towards profitability. Despite the customer loss, we have taken necessary measures to safeguard the business from a cost perspective. The Directors continue to be of the opinion that the Group has sufficient working capital for its present requirements, that is for at least 12 months from the date of this release.
The increasing interest in strategy execution, our growing confidence in lead nurturing and generation, our ongoing product improvements, and the heightened engagement from our partners all fuel our optimism for delivering incremental growth in customer numbers and upsells. These factors collectively contribute to our positive outlook for the future.
Simon Crowther
Chief Executive Officer
Chief Financial Officer's ReportRevenueLicence revenues
Monthly recurring revenue ('MRR'), the key financial metric for the Group, grew by 16% in the year to £289k at 30 September 2023 (30 September 2022: £250k) as the business delivered a second year of improved double-digit growth (FY22: 12% increase in MRR). A key contributor to this success is the realisation of our revised land and expand go-to-market strategy from the start of 2022, with logos secured during the last two years having seen average growth in MRR value of 66% by the end of FY23. This level of expansion is testament to the increasing strength of our client relationships and quality of our product, with net retention (measured by the total value of on?going MRR at the period?end from clients in place at the start of the period as a percentage of the opening MRR from those clients) in the year rising to 107% (FY22: 98%).
Supporting this growth was the Group's continued ability to secure a consistent level of new logos in the year (FY23: seven, FY22: nine) delivering £23k MRR (FY22: £30k MRR) with equivalent levels of expansion opportunity in these accounts through FY24 to customers signed in the last two years.
As expected, software revenues recognised in 2023 increased by 13% to £3,236k (FY22: £2,857k) as a consequence of the new business and account expansion successes since the start of 2022. These now represent 92% of overall revenue (FY22: 91%).
As announced, following the year-end, the Group was informed that a major legacy customer, using the older, highly customised version of the i-nexus software, does not intend to renew its contract at the calendar year-end. Whilst the Board has rapidly put in place mitigating actions such that the impact on the Group's cash flows is minimised and the adjusted EBITDA breakeven position can be substantially preserved, it is likely to moderate the Group's FY24 MRR growth against FY22 and FY23 levels. Positively, the business continues to deliver MRR growth through its core proposition, securing a further two new logos and delivering a key account expansion in Q1 FY24, totalling £12k MRR.
Services revenuesRevenue from associated professional services has increased by 8% to £292k (FY22: £270k), driven by an uplift in H2 through the timing of delivering new customer deployments and existing change orders, a trend expected to continue into FY24 underpinned by the deferred revenue balance related to services at 30 September 2023 being a third higher than at 30 September 2022.
Gross MarginGross margin in the year remained stable at 80% (FY22: 79%) with the increase in revenue driving the uplift from £2,461k to £2,833k.
Reported Gross Margin is the combined Gross Margin over both recurring software subscriptions and professional services.
Adjusted EBITDAAdjusted EBITDA (EBITDA excluding the impact of impairment, loss on disposal of assets, share-based payments, and non-underlying items) totalled a loss of £499k for the period (FY22: loss of £552k), with the increase in revenue being partially netted against an uplift in overhead costs reflecting the Board's decision towards the end of FY22 to accelerate a select number of investments both in its existing employee base to preserve retention and in additional resource needed for operational delivery.
As mentioned in the FY22 Annual Report, there remains no plans to make further investments until such time as the business is delivering a positive Adjusted EBITDA.
Depreciation, amortisation and impairment
Total costs in respect of depreciation, amortisation, and impairment were £339k in FY23 (FY22: £385k). With the business having low capital expenditure requirements, the value is principally made up of amortisation on intangible assets, being capitalised development costs, totalling £198k (FY22: £165k) and any subsequent impairment charges (FY23: £126k, FY22: £155k).
These costs are reflective of the continual evolution of the market in which the Group operates, the needs of its customers, both present and prospective, and the Group's agile approach to continually developing and improving its o?ering.
Statutory resultsThe Group reported a loss before taxation for the year of £982k (FY22: loss of £1,105k).
Cash and cash equivalentsThe Group had cash & cash in transit at 30 September 2023 of £267k (FY22: £99k), with the end of the financial year representing the annual cash low point for the business given the seasonality in cash flows arising from the timing of the invoicing and collection of the Group's recurring revenue, the majority of which is billed during Q1 and Q2.
During the year, the Group's cash position was enhanced by securing £500k of funding through the issue of Fixed Rate Unsecured Convertible Redeemable Loan Notes in order to assist with the Group's working capital headroom in the near term to enable the business to focus its efforts on delivering on its pipeline opportunities and realising the growing expansion opportunities within its customer base.
The business continues to drive a reduction in its net cash outflow from operating activities (FY23: £228k, FY22: £237k), with the impact of new business successes, improved service billing and a strong renewal performance in the year being offset against the full-year cost impact of the select investments made towards the end of FY22.
Whilst the loss of a major legacy customer following the year-end will affect the FY24 operating cash flows, the Board has rapidly put in place mitigating actions such that the impact on the Group's cash flows is minimised.
Careful cash management will continue to be a priority focus for the Board. As previously outlined, there are currently no plans to increase the existing cost base until such time as the business achieves a position of at least Adjusted EBITDA breakeven.
The Group also continues to apply treasury and foreign currency exposure management policies where possible to minimise both the cost of finance and our exposure to foreign currency exchange rate fluctuations.
Net debt at 30 September 2023 was £1,964k (30 September 2022: £1,710k). On 21 June 2023, the Company agreed with the holders of the £1,325k and £650k Convertible Loan Note tranches to extend the redemption date from 4 November 2024 to 4 November 2025 and 29 September 2024 to 29 September 2025 respectively, see note 7 for further details.
The Group prepares budgets, cashflow forecasts and undertakes scenario planning to ensure that the Group can meet its liabilities as they fall due.
The Board's assessment in relation to going concern, including a description of its current scenario planning, is included on page 16 of the report.
Balance sheetTrade receivables have remained broadly in line with FY22 levels at £580k (30 September 2022: £609k) due to the timing of receipt of annual licence fee and subscription invoices issued in the final months of the year.
The growth in the Group's MRR and accompanying services resulted in deferred revenue increasing to £1,477k at 30 September 2023 (30 September 2022: £1,320k). The Group's cash collection disciplines remain strong with DSO (debtor days) at 30 September 2023 of 57 (30 September 2022: 60).
Principal risks and uncertaintiesThe Group's principal risks and uncertainties are set out on pages 21 to 27.
Drew Whibley
Chief Financial O?cer
Primary statements
Consolidated Statement of Comprehensive income
For the year ended 30 September 2023
2023 | 2022 | |
£ | £ | |
Revenue | 3,527,681 | 3,126,804 |
Cost of sales | (694,230) | (666,280) |
Gross profit | 2,833,451 | 2,460,524 |
Administrative expenses | (3,672,313) | (3,408,424) |
Operating loss | (838,862) | (947,900) |
Adjusted EBITDA | (498,748) | (552,357) |
Depreciation, amortisation, impairment and profit/loss on disposal | (338,789) | (384,975) |
Share based payment expense | (1,325) | (10,568) |
Investment revenues | 19 | 68 |
Finance costs | (261,060) | (231,288) |
Other gains and losses | 117,619 | 73,845 |
Loss before taxation | (982,284) | (1,105,275) |
Income tax income | 226,214 | 234,391 |
Loss for the year | (756,070) | (870,884) |
Other comprehensive income: | ||
Items that will not be reclassified to profit or loss | ||
Currency translation differences | (47,745) | (486) |
Total items that will not be reclassified to profit or loss | (47,745) | (486) |
Total other comprehensive income for the year | (47,745) | (486) |
Total comprehensive income for the year | (803,815) | (871,370) |
2023 | 2022 | |
£ | £ | |
Earnings per share | ||
Basic | (0.03) | (0.03) |
Diluted | (0.03) | (0.03) |
Consolidated Statement of Financial Position
As at 30 September 2023
2023 £ | 2022 £ | |
Non-current assets | ||
Intangible assets | 738,847 | 915,696 |
Property, plant and equipment | 28,533 | 26,413 |
767,380 | 942,109 | |
Current assets | ||
Trade and other receivables | 929,812 | 781,838 |
Current tax recoverable | 225,758 | 224,000 |
Cash and cash equivalents | 79,668 | 98,987 |
1,235,238 | 1,104,825 | |
Total assets | 2,002,618 | 2,046,934 |
Current liabilities | ||
Trade and other payables | 719,529 | 682,840 |
Borrowings | 9,952 | 9,707 |
Deferred revenue | 1,477,488 | 1,319,674 |
2,206,969 | 2,012,221 | |
Net current liabilities | (971,731) | (907,396) |
Non-current liabilities | ||
Trade and other payables | 421,831 | 254,407 |
Borrowings | 22,435 | 32,387 |
Convertible loan notes | 2,135,108 | 1,766,925 |
2,579,374 | 2,053,719 | |
Total liabilities | 4,786,343 | 4,065,940 |
Net liabilities | (2,783,725) | (2,019,006) |
Equity | ||
Called up share capital | 2,957,161 | 2,957,161 |
Share premium account | 7,256,188 | 7,256,188 |
Foreign exchange reserve | (46,355) | 1,390 |
Share option reserve | 21,387 | 20,062 |
Equity reserve | 269,622 | 231,851 |
Merger reserve | 10,653,881 | 10,653,881 |
Retained earnings | (23,895,609) | (23,139,539) |
Total equity | (2,783,725) | (2,019,006) |
Consolidated Statement of Changes in Equity
For the year ended 30 September 2023
Sharecapital £ | Share premium account £ | Equity reserve £ | Merger reserve £ | Foreign exchange reserve £ | Share option reserve £ | Retained earnings £ | Total £ | ||
Balance at 1 October 2022 | 2,957,161 | 7,256,188 | 231,851 | 10,653,881 | 1,390 | 20,062 | (23,139,539) | (2,019,006) | |
Year ended 30 September 2023: Loss for the yearOther comprehensiveincome: Exchange differenceson foreign operations | - - | - - | - - | - - | - (47,745) | - - | (756,070) - | (756,070) (47,745) | |
Total comprehensiveincome for the year | - | - | - | - | (47,745) | - | (756,070) | (803,815) | |
Transactions with owners in their capacity as owners Share option expense in the year Issue of convertible loan | - - | - - | - 37,771 | - - | - - | 1,325 - | - - | 1,325 37,771 | |
Total contributions by and distributions to owners of the Company recognised directly in equity | - | - | 37,771 | - | - | 1,325 | - | 39,096 | |
Balance at 30 September 2023 | 2,957,161 | 7,256,188 | 269,622 | 10,653,881 | (46,355) | 21,387 | (23,895,609) | (2,783,725) | |
Consolidated Statement of Cash Flows
For the year ended 30 September 2023
£ | 2023 £ | £ | 2022 £ | |
Operating activities | ||||
Loss after tax | (756,070) | (870,884) | ||
Adjusted for non-cash items: | ||||
Taxation credit | (226,214) | (234,391) | ||
Amortisation, depreciation,and adjustments on disposal | 338,789 | 384,975 | ||
Share-based payment expense | 1,325 | 10,568 | ||
Finance income | (19) | (68) | ||
Deferred income | 157,814 | - | ||
Finance charges | 261,060 | 231,288 | ||
Decrease in provisions | (2,751) | - | ||
Other gains | (117,619) | (73,845) | ||
(343,685) | (552,357) | |||
(Increase)/decrease in trade and otherreceivables | (145,223) | 10,126 | ||
Increase in trade and other payables | 36,689 | 20,043 | ||
Cash used in operations | (452,219) | (522,188) | ||
Income tax refunded | 224,456 | 285,391 | ||
Net cash outflow from operating activities | (227,763) | (236,797) | ||
Investing activities | ||||
Purchase of intangible assets -internally generated | (146,374) | (136,234) | ||
Purchase of property, plant and equipment | (17,686) | (24,443) | ||
Interest received | 19 | 68 | ||
Net cash used in investing activities | (164,041) | (160,609) | ||
Financing activities | ||||
Issue of convertible loans | 436,000 | - | ||
Repayment of borrowings | (9,707) | (71,425) | ||
Interest paid | (6,063) | (6,899) | ||
Net cash generated from/(used in) financing activities | 420,230 | (78,324) | ||
Net increase/(decrease) in cash and cash equivalents | 28,426 | (475,730) | ||
Cash and cash equivalents atbeginning of year | 98,987 | 575,203 | ||
Effect of foreign exchange rates | (47,745) | (486) | ||
Cash and cash equivalents at end of year | 79,668 | 98,987 |
At the year end there was £187,389 of cash in transit held in trade receivables. This cash related to trade in the year and was received on 2 October 2023.
Notes to accounts
1. General information
i-nexus Global plc is a public company limited by shares incorporated in England and Wales (registration number 11321642). The registered office is 27-28 Eastcastle Street, London, W1W 8DH. The Group's principal activities and nature of its operations are disclosed on page 3-11 of this report.
The Group consists of i-nexus Global plc and all of its subsidiaries.
Significant accounting policies
The following principal accounting policies have been used consistently in the preparation of consolidated financial information for i-nexus Global plc and its subsidiaries (the 'Group').
Basis of preparation
The financial information has been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.
The financial information is prepared in sterling, which is the functional currency of the Group. Monetary amounts in this financial information are rounded to the nearest £1.
This financial information has been prepared applying the accounting policies applied in the Group's most recent publicly available financial statements.
The financial information incorporates the results of i-nexus Global plc and all of its subsidiary undertakings as at 30 September 2023.
Going concern
After reviewing the Group's forecasts and projections, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, being a period of at least twelve months from the date of approval of these financial statements. The Group therefore continues to adopt the going concern basis in preparing its financial statements. Information used to make this decision is detailed below.
A scenario testing exercise, in which the Directors prepared detailed cash flow forecasts for the period covered by the going concern forecast, was performed. The forecasts take into account the Directors' views of current and future economic conditions that are expected to prevail over the period including assumptions regarding the sales pipeline, future revenues and costs with various scenarios which reflect growth plans, opportunities, risks and mitigating actions.
Alongside management's base case forecast, which incorporates the impact of the Customer Update announcement, the Group prepared an extreme downside scenario where, outside of the deals secured or in contracting, any growth in MRR across the period would be o?set by non-renewals, reducing total billing across recurring and services revenue by £350k. Under this extreme scenario, the Group has given consideration to the potential actions available to management to mitigate the impact of these sensitivities, in particular the discretionary nature of certain costs incurred by the Group alongside the employment of further mitigating actions in order to ensure the continued availability of funds.
Financial performance in 2024 is not expected to be materially impacted from current year levels due to the long-range revenue visibility achieved through the recurring revenue business model. These recurring revenues, representing 90% of total revenue, are considered resilient given the majority are on multi- year terms. The forecast also assumed that the Group does not have access to any further external funding. Based on current trading, the extreme downside scenario is considered very unlikely.
The Group continues to monitor the collection of monies from clients with no material delays in payment being cited. The business benefits from an Annual Licence Fee Model in which software licence fees are received annually in advance.
Abridged financial information
This preliminary announcement has been prepared in accordance with the basis of preparation set out above. Whilst the financial information included in this preliminary announcement has been prepared in accordance with IFRS, this announcement does not itself contain sufficient information to comply with IFRS. This preliminary announcement constitutes a dissemination announcement in accordance with Section 6.3 of the Disclosures and Transparency Rules (DTR).
2. Revenue and segmental reporting
The Group has one single business segment and therefore all revenue is derived from the rendering of services as stated in the principal activity. The Group operates in six geographical segments, as set out below. This is consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance, has been identified as the management team comprising the executive directors who make strategic decisions.
Revenue analysed by class of business |
Year ended 30 September 2023 £ |
|
Year ended 30 September 2022 £ |
|
|
| |
Licence | 3,235,964 |
| 2,856,720 |
Services | 291,717 |
| 270,084 |
3,527,681 |
| 3,126,804 | |
Revenue analysed by geographical market |
Year ended 30 September 2023 £ |
|
Year ended 30 September 2022 £ |
|
|
| |
United Kingdom | 774,825 |
| 716,295 |
USA | 1,197,292 |
| 882,707 |
Switzerland | 659,380 |
| 639,380 |
Germany | 550,668 |
| 538,561 |
Rest of Europe | 158,393 |
| 190,976 |
Rest of the World | 187,123 |
| 158,885 |
3,527,681 |
| 3,126,804 |
3. Adjusted EBITDA
The calculation of Adjusted Earnings is consistent with the presentation of Adjusted Earnings before Interest, Tax, Depreciation, and Amortisation, as presented on the face of the Statement of Comprehensive Income. This adjusted element also removes non-underlying items which, in the prior year, comprise COVID-19 related redundancy costs and professional and consultancy fees relating to the raising of finance. There were no such costs in the current year. The Directors have presented this Alternative Performance Measure ("APM") because they feel it most suitably represents the underlying performance and cash generation of the business, and allows comparability between the current and comparative period in light of the rapid changes in the business, and will allow an ongoing trend analysis of this performance based on current plans for the business.
4. Earnings per share
The earnings per share has been calculated using the loss for the year and the weighted average number of ordinary shares outstanding during the year, as follows:
Year ended 30 September 2023 | Year ended 30 September 2022 | |||
£ |
| |||
Loss for the period attributable to equity holders of the company | (756,070) | (870,884) | ||
Weighted average number of ordinary shares (for basic and diluted earnings per share | 29,571,605 | 29,571,605 | ||
Earnings per share (basic and diluted) | (0.03) | (0.03) | ||
The Diluted EPS is the same as the basic EPS in the current and comparative year as the Group has incurred losses in each of the periods concerned. The Group has a number of potentially dilutive share options and convertible redeemable loan stock that could dilute the earnings per share should the Group become profitable. As at 30 September 2023 both the share options and the convertible loan stock are out of the money.
5. Trade and other receivables
At 30 September 2023 £ |
| At 30 September 2022 £ | ||||||
Trade receivables | 580,379 | 608,560 | ||||||
Cash in transit | 187,389 | - | ||||||
Provision for impairment | (1,639) | (4,390) | ||||||
766,129 | 604,170 | |||||||
VAT recoverable | 42,622 | 50,440 | ||||||
Other receivables | - | 2,390 | ||||||
Prepayments | 121,061 | 124,838 | ||||||
929,812 | 781,838 | |||||||
Cash in transit represents monies remitted on 29 September 2023 which were received on 3 October 2023. The accounting policy is to de-recognise a trade receivable when the cash is received and hence this balance is included in trade and other receivables.
6. Borrowings
At 30 September 2023 £ |
| At 30 September 2022 £ | ||||||
Current | ||||||||
Bank loans | 9,952 | 9,707 | ||||||
9,952 | 9,707 | |||||||
Non-current | ||||||||
Bank loans | 22,435 | 32,387 | ||||||
22,435 | 32,387 | |||||||
Total borrowings | 32,387 | 42,094 | ||||||
|
The Group had the following borrowings at 30 September 2023:
· A Bounce Back Loan Scheme loan within bank loans which has an interest rate of 2.5% payable from November 2021 when the government grant incentive period expires. The loan is carried at £32,387 in the financial statements. This loan is unsecured.
The directors consider the value of all financial liabilities to be equivalent to their fair value.
7. Convertible Loan note
In 2021, two tranches of convertible loan notes were issued. The first tranche was issued on 4
November 2020 with total proceeds of £1,325,000 and the second tranche was issued on 29 September 2021 with total proceeds of £650,000. In the current year, a further tranche was issued with total proceeds of £500,000.
When issued, the first two trances had a redemption date three years, and the third tranche has a redemption date of two years following their date of issue. The loan note holders are entitled, before the redemption date, to convert all or part of their holding of loan notes into fully paid Ordinary Shares on the basis of 1 Ordinary Share for every 10p of principal nominal amount of loan notes held, or, convert all or part of their holding of loan notes into fully paid Ordinary Shares at the conversion rate; and/or redeem all or part of their holding of loan notes.
In respect of the first two tranches, at the issue date the net proceeds received were split between the
financial liability element of £1,743,149 and an equity component of £231,851, representing the fair value of the embedded option to convert the financial liability into equity. The equity component of the convertible loan notes has been credited to the equity reserve.
In respect of the third tranche, at the issue date the net proceeds received were split between the financial liability element of £462,229 and an equity component of £37,771, representing the fair value of the embedded option to convert the financial liability into equity. The equity component of the convertible loan notes has been credited to the equity reserve. The issue of the third tranche attracted transaction costs to the total of £64,000 which have been deducted from the carrying amount of the loan notes.
In the prior year the redemption date of the first tranche was extended by a further year, to give a revised redemption date of 4 years following the original date of issue, being November 2024. This modification was not considered to be substantial, as defined in IFRS 9, therefore the existing liability was re-calculated as the present value of the revised future cash flows discounted at the original effective interest rate. A gain of £73,845 on the modification of the liability has been recognised in other gains and losses.
In the current year the redemption date of the first and second tranches were extended by a further year, to give a revised redemption date of five years and four years following the original date of issue, being November 2025 and September 2025 respectively. This modification was not considered to be substantial, as defined in IFRS 9, therefore the existing liability was re-calculated as the present value of the revised future cash flows discounted at the original effective interest rate. A gain of £117,619 on the modification of the liabilities has been recognised in other gains and losses.
The extension to the redemption date is a modification only of the existing convertible loan notes and
therefore has no impact on the equity element.
The liability component is measured at amortised cost, and the difference between the carrying amount of the liability at the date of issue and the amount reported in the statement of financial position represents the effective interest rate less interest paid to that date.
The convertible loan notes carry a coupon rate of 8% and are recognised at their net present value using a discount rate of 12%.
|
| Liability £
| |
Liability component at 1 October 2021 | 1,782,458 | ||
Interest charged | 224,389 | ||
Interest accrued | (166,077) | ||
Gain on modification | (73,845) | ||
Liability component at 30 September 2022 | 1,766,925 | ||
Issue of convertible loan notes | 398,229 | ||
Interest charged | 254,997 | ||
Interest accrued | (167,424) | ||
Gain on modification | (117,619) | ||
Liability component at 30 September 2023 | 2,135,108 |
8. Share capital
| |||||
| |||||
| At 30 September 2023 |
| At 30 September 2022 |
| |
|
| £ |
| £ |
|
Authorised, allotted, called up and fully paid |
| ||||
29,571,605 (2022: 29,571,605) Ordinary shares of £0.10 each | 2,957,161 | 2,957,161 |
| ||
Fully paid shares carry one vote per share and carry rights to a dividend.
9. Principal risks and uncertainties
The Board of the Company regularly reviews business risk and the Group's appetite for risk relative to its goals. There are a number of potential risks and uncertainties, some of which could have a material impact on the Group's performance, and therefore could cause actual results to differ materially from those expected. Set out below are the significant business risk areas identified, together with an overview of the mitigating factors considered by the Board. This is not an exhaustive list of the risks faced by the Group and is not necessarily presented in order of priority.
Risk | Description | Mitigation |
Working capital Vulnerability of the Group's working capital.
| Whilst the Directors believe that the improvement in sales conversion seen across FY22 and FY23 is sustainable, the Group's working capital position is still exposed should this weaken and /or its expected growth within existing accounts be lower than planned in FY24. The recent injection of funds, as a result of the Convertible Bond issues in June 2023 will provide the necessary flexibility and coverage to the risk posed should any customer delay payment in order to satisfy the Group's near term funding requirements The Group's continuing viability in the longer term remains critically dependent on its ability to secure new sales and expand the use of the software in existing accounts. It is possible that the Group will experience a slower and/or lower sales conversion rate than the Directors have modelled within their base case financial projections. This could in turn have a material adverse e?ect on the Group's business, results of operations, financial condition and prospects. | Trend: Level risk The Group prepares regular business forecasts and monitors its projected cash flows, which are reviewed by the Board. The scenarios and sensitivities demonstrate that there are mitigating actions management can implement should the plans not deliver the expected sales growth. The Group's Annual Licence Fee model, in which software licence fees are received annually in advance, provides good levels of visibility such that any required mitigating actions can be implemented on a timely basis.
|
Risk | Description | Mitigation |
Market & product development The strategy market may not evolve as expected or our products fail to meet the expectations of the market.
| Whilst the Board believes that there is strong evidence of an increasing trend to digitalize strategy by its target customers, a large proportion of the Group's target market continues to use traditional methods and in-house developed systems. Although the Group has achieved its market position through a deep understanding of the market, and the 15 years of development of its i-nexus software, there is no guarantee that either our product continues to meet customer expectations or that the Group's competitors and potential competitors (who may have significantly greater financial, marketing, service, support, technical and other resources than the Group) may be able to develop competing products, respond more quickly to changes in customer requirements and devote greater resources to the enhancement, promotion and sale of their products, which could have a negative impact on the Group's business. | Trend: Level risk The Group has internal sales and marketing functions, which are also supported by a network of consulting partners, that work with potential customers to educate them on the benefits of digitising strategy and the associated benefits the product can o?er an organisation. The rate of incoming enquiries continues to support the view that the need to digitise strategy is becoming ever more of a focus for businesses. The Board feels that the continued enhancement along with the Group's product strategy and R&D focus mitigates this risk. The Board monitors user satisfaction and the extent to which the software continues to meet customer expectation through various channels, including on the G2 platform. |
Risk | Description | Mitigation |
Account Proliferation Failure of our existing accounts to grow as planned, resulting from dissatisfaction with the product and/or deployment issues.
|
An important aspect of the Group's growth strategy is to proliferate sales of its i-nexus software with existing customers as a result of the natural evolution of the software use over time.
Although the Group has a number of examples where this has occurred in the year, this is no guarantee that it will continue to happen at the increasing rate predicted. Any failure of this anticipated account proliferation occurring will impact the Group's future success and adversely a?ect its business, prospects and financial position.
| Trend: Reducing risk Many of the new logos signed across FY22 and FY23 were "Land and Expand" opportunities with clear intent, whereby a smaller subset of a much larger future deployment have commenced using the product first. The business has seen the beneficial impact of this strategy in FY23 with record levels of account growth both in terms of volume and value. This team's e?orts at growing our existing accounts has been assisted by the recent product enhancements aimed at improving user experience. The Board continue to monitor the e?cacy and outcomes of the Group's e?orts in growing existing accounts in FY24. |
Contractual obligations Failure to optimize our deployed product or meet our contractual obligations, client expectations or agreed service levels.
| The Group's ability to attract new clients or retain existing clients is largely dependent on its ability to provide a reliable high-quality product and services and to maintain a good reputation. Because many of the engagements of the Group involve projects that are critical to the business, the failure or inability of the Group to meet a client's expectations could have an adverse effect on the client's operations and could result in damage to the reputation of the Group. Certain contracts may provide for a reduction in fees payable by the client if service levels fall below certain specified thresholds, thus potentially reducing or eliminating the profit margin on any particular contract. If the Group fails to meet its contractual obligations or perform to client expectations, it could be subject to legal liability or damage to its reputation and the client may ultimately be entitled to terminate the contract. | Trend: Level risk The Group employs highly skilled personnel and has business processes in place to endeavour to ensure that any lapse is quickly identified and addressed. In addition, significant issues and client escalations are reported to senior management and, if appropriate, the Board. The Board reviews monthly dashboards on project delivery and client-related risks.
|
Risk | Description | Mitigation |
Macroeconomic conditions Demand for the Group's products may be adversely affected if economic and market conditions are unfavourable.
| Adverse economic conditions worldwide can contribute to slowdowns in the Information Technology spending environment and may impact the Group's business, resulting in reduced demand for its products as a result of decreased spending by clients and increased price competition for the Group's products. The Group's revenues, expenses and operating results could vary significantly from period to period as a result of a variety of factors, some of which are outside the Directors' control. | Trend: Level risk The Group's preferred annual licence fee or subscription model generates recurring revenue which provides some resilience against the full effects of market deterioration. Additionally, the Group operates in multiple geographic regions across a number of business sectors. The present macro-economic environment is being monitored closely in conjunction with regular pipeline reviews. |
Dependence on key Customers Failure to retain our larger key customers.
| During the year, a relatively small group of key customers provide approximately half of the Group's MRR. The Group's financial performance is therefore partly dependent on the continued business relationship with these key customers. Failure to manage the ongoing renewal of the contracts with these key customers on a commercially acceptable basis could materially a?ect the Group's operations and/or its financial condition. Following the year-end, the Company was informed that one of these key customers, the last remaining client using the older, highly customized version of the i-nexus software, does not intend to renew at its calendar year-end. | Trend: Reducing risk The majority of this small group of customers are in contracts with a remaining term of more than one year and all bar one of them have been longstanding clients for a period of at least five years. Whilst it was unfortunate to part ways with a valued customer following the year-end, especially one with whom we have enjoyed a strong working relationship, the use of the highly customized version of the software always provided an increased level of inherent risk within their account that was difficult to mitigate. As previously reported, the Group has a dedicated team of long-standing experienced professionals acting as Success Managers. They have well- established processes and reporting that allow them to get early warning of any issues. |
Risk | Description | Mitigation |
Security Breaches and Cyber Attacks Vulnerability of the Group's systems to security breaches or cyber attacks.
| The Group is a Data Processor for its customers' confidential data. Although the Group is ISO27001 accredited and therefore employs security and testing measures for the software it deploys and the broader security environment is well documented, these measures may not protect it from all possible security breaches that could harm the Group or its customers' business.
Given the reliance of the business on its information technology systems, the software is at risk from cyber attacks.
Either of these security events may result in significant costs being incurred and other negative consequences including reputational damage. | Trend: Level risk
The Group takes its Information Security very seriously as demonstrated by its ISO27001 accreditation. Employees are trained in this area to ensure best practice measures are followed for Information Security.
The Group utilises the latest security products, with sta? receiving regular security awareness training and testing. The security regime is regularly reviewed, and the Group invests in state-of-the-art systems to keep both its cloud platform and o?ce networks protected against cyber-attack.
In addition, our systems are subjected to frequent and rigorous third-party penetration testing to help ensure our system integrity.
The Group has cyber security insurance in place and the Group endeavors to secure limitations of liability clauses in its customer contracts. |
Recruitment & retention Risk of failing to attract and/or retain key personnel.
| As the Group grows it has a dependence on the recruitment and retention of highly skilled employees and an ongoing reliance on a limited number of key personnel, including the Directors and senior management, who have significant sector experience.
The job market is increasingly competitive in the cloud technology sector, particularly following the pandemic and subsequent acceleration of cloud adoptions and digital transformation trends.
The business requires specialist technical skills that can be scarce.
If members of the Group's key senior team depart, the Group may not be able to find e?ective replacements in a timely manner, or at all, and its business may be disrupted.
| Trend: Level risk
The Group works closely with external parties to ensure competitive pay and benefits are being o?ered to both attract and retain people.
We continue to invest in people development and training initiatives to provide opportunities for career fulfillment and progression. Wherever appropriate we seek to develop and promote from within the existing sta? pool.
Executive and sta? remuneration plans, incorporating long-term incentives, have been implemented to mitigate this risk.
|
Risk | Description | Mitigation |
Dependence on Channel Partners Failure to develop this additional route to market effectively.
| Part of the Group's strategy is to increasingly sell its software through channel partners. There are no guarantees that su?cient channel partners will be found to sell the Group's software at the rates planned.
The Directors are confident that engagements to date by existing and prospective channel partners provide strong evidence of the opportunity available. During the year, the Group delivered multiple new logos through its channel partners, with several further agreements with strategic partners providing well progressed pipeline opportunities at year end.
Despite the significant progress made in the year, unlocking the full potential of a productive channel partner programme in the future could a?ect the Group's future success. | Trend: Reducing risk
Significant efforts in relation to the evolution of this strategy have taken place across FY23 with good levels of success.
The business has put in place a comprehensive process in order to identify and ensure all channel partners are the right strategic fit, with all agreements including clauses to preserve against the under-delivery or non-delivery of customer requirements.
The Board will continue to closely monitor progress through FY24 in this area. |
Financial risk management The principal financial instruments used by the Group, from which financial risk arises, are trade receivables, cash at bank, trade and other payables. | Credit risk Credit risk is the risk of financial loss to the Group if a partner or customer fails to meet its contractual obligations.
Liquidity risk Liquidity risk arises from the Group's management of working capital. It is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due.
| Trend: Level risk
The Group is principally exposed to credit risk from credit sales and/or bank default. It is Group policy to assess the credit risk of new customers and partners before entering new contracts and it has a frequent and proactive collections process.
Under the terms of our contracts many services are charged for in advance of delivery, thus mitigating the risk further.
Trend: Level risk
On a monthly basis, the Directors review the Group's trading to date, the Group's full year financial projections as well as information regarding cash balances, debtors, trading and prospects. This allows the Directors to form an opinion as to the working capital of the Group and its likely future requirements in order to plan accordingly.
|
Risk | Description | Mitigation |
| Currency risk As a consequence of the Group's exposure transacting in foreign currencies there are risks associated with changes in foreign currency exchange rates.
The Group is based in the United Kingdom and presents its consolidated financial statements in pounds Sterling.
The Group's current revenues are generated primarily in Sterling, US dollar and Euros. The Group also has some contractual obligations that are denominated in US Dollars.
Inflation risk Inflation risk has been very limited for most of the last decade. However, as with many technology businesses, the Group is experiencing increased inflationary pressures within its cost base. The timing of a customer's invoice for their typically annually in advance software fee can also contribute to a delay in inflationary pressures being passed to customers.
| Trend: Level risk
All geographies addressed by the Group can be readily serviced from the UK. The Group applies treasury and foreign currency exposure management policies to minimise both the cost of finance and our exposure to foreign currency exchange rate fluctuations.
Notwithstanding these hedgingarrangements, the Group does have exposure to translation effects arising from movements in the relevant currency exchange rates against sterling. Therefore, there can be no assurance that its future results or resources will not be significantly affected by fluctuations in exchange rates.
Trend: Increasing risk
The inflationary environment continues to be closely monitored, and commercial modelling undertaken to assess the impact of inflationary increases.
The Group is able to reduce the exposure in its client contracts with the majority allowing for inflationary increases to be applied to fees. |
10. Forward-looking Statements
This document contains forward-looking statements that involve risks and uncertainties. All statements, other than those of historical fact, contained in this document are forward-looking statements. The Group's actual results could differ materially from those anticipated in the forward-looking statements as a result of many factors. Investors are urged to read this entire document carefully before making an investment decision. The forward-looking statements in this document are based on the relevant Directors' beliefs and assumptions and information only as of the date of this document, and the forward-looking events discussed in this document might not occur. Therefore, Investors should not place any reliance on any forward-looking statements. Except as required by law or regulation, the Directors undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future earnings or otherwise.
It should be noted that the risk factors listed above are not intended to be exhaustive and do not necessarily comprise all of the risks to which the Group is or may be exposed or all those associated with an investment in the Group. In particular, the Group's performance is likely to be affected by changes in market and/or economic conditions, political, judicial, and administrative factors and in legal, accounting, regulatory and tax requirements in the areas in which it operates and holds its major assets. There may be additional risks and uncertainties that the Directors do not currently consider to be material or of which they are currently unaware, which may also have an adverse effect upon the Group.
11. Availability of Report and Accounts
The audited report and accounts for the year ended 30 September 2023 will be published and posted to shareholders in due course. Following this a soft copy of the report and accounts will also be available to download from the Group's website, www.i-nexus.com.