Last checked at 5 Sep 2016 07:00
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
| 5 September 2016 |
VIPERA PLC
("Vipera" or the "Company")
Interim results for six months ended 30 June 2016
Vipera (AIM:VIP), the specialist provider of mobile financial services, is pleased to announce its unaudited interim results for the six months ended 30 June 2016.
Highlights:
· Revenue €3.78 million: up 43% vs prior year (H1 2015: €2.63 million)
· Continued investment in expansion and in IP
· Operating loss €0.40 million (H1 2015: €0.52 million)
· Net Cash at period end €2.44 million (Dec 2015: €3.23 million)
· FX changes impact balance sheet post Brexit but no visible impact on operations
· First installation of a new retail solution for a major European retailer
Vipera CEO Marco Casartelli commented, "2016 has, so far, been a year of steady progress for Vipera, which has seen new product developments, deployments for new customers and the first installation of a new retail solution. We are encouraged by the appetite for our solutions by the financial services and banking industry, through a period of great uncertainty and look forward to progressing our growth further throughout the rest of 2016.
We would like to take this opportunity to thank our continually supportive investor base and our employees for their hard work in the year to date."
Contact:
Vipera PLC Marco Casartelli (CEO) Martin Perrin (CFO) Simon Pearce (CMO) Rita Borgo (PR)
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Tel: +39 02 8688 2037 Tel: +44 (0) 20 7193 0833 Tel: +44 (0) 20 7097 8632 Tel: +39 335 131 6087
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finnCap Ltd (Nomad and Broker) Adrian Hargrave / Anthony Adams (Corporate Finance) Christian Hobart (Corporate Broking)
| Tel: +44 (0) 20 7220 0500 |
IFC Advisory Ltd (Financial PR and IR) Tim Metcalfe Graham Herring Heather Armstrong | Tel: +44 (0) 203 053 8671 |
About Vipera:
Vipera Plc (AIM:VIP) a cutting edge Mobile Financial Services and Digital Customer Engagement Solutions provider, serves financial institutions worldwide with differentiated mobile banking, card management and customer engagement capabilities based around its proprietary bank grade multi-purpose platform, Motif. Additionally, it provides consultancy and other services to banks and financial institutions. For further information, please visit www.vipera.com.
Chairman's Statement
The first half of 2016 has been one of solid delivery of services and solutions to our customers. We have previously referred to the deployment of a new release of our mobile banking application at the leading UAE banking group Mashreq, working closely with them as they roll out a new operating environment for their own customer base. Our technical teams continue to innovate and adapt to our customers' needs in projects such as this as well as other deployments.
As our installed base grows there is an increase in recurring support and maintenance revenue and we now have staff dedicated to this role. We continue to deploy to new customers and we were very pleased to have launched the first installation of a new retail solution which we have developed and put into operation for a major European retailer.
Our sales and marketing team continue the long, but potentially very rewarding process of developing new sales channels. In addition to the marketing partnership with ExperienceLab, commented on previously, there are a number of initiatives being developed and we do hope to be able to say more later in the year.
Despite the well-publicised conditions for European banks, the demand for fintech solutions continue and there is strong interest in our offering of products and services, particularly Card Control. Our challenge is to convert these into active contracts and deployments on a timely basis.
In February we appointed an additional non-executive director, Jeremy Nicholds. He has extensive experience in the global payments field and has already been proactive in assisting the Company with strategic partnerships and sales.
The board does not feel that Brexit has had an immediate impact per se, but the drop in the value of the Pound versus the Euro has had an impact on the consolidated accounts which include the translation of certain Sterling denominated assets.
Looking ahead to the rest of the year, the financial result will, as noted in past years, be significantly dependent on the timing of transactions and in particular, the speed of customer decision-making. However, our expectation is that group revenues will show an increase over the previous year, continuing our track record of revenue growth for a seventh successive year.
Luciano Martucci
Chairman
Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2016
| Note | Six months to 30 June 2016 | Six months to 30 June 2015 | Year to 31 December 2015 |
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| (Unaudited) | (Unaudited) | (Audited) |
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| € | € | € |
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Revenues | 2 | 3,784,497 | 2,629,074 | 6,807,373 |
Operating expenses |
| (4,187,655) | (3,149,292) | (7,439,295) |
Operating loss |
| (403,158) | (520,218) | (631,922) |
Finance income |
| 457 | 140 | 1,118 |
Finance costs |
| (9,673) | (5,298) | (15,169) |
Loss before taxation |
| (412,374) | (525,376) | (645,973) |
Taxation |
| (3,086) | (34,491) | (154,943) |
Loss for the period |
| (415,460) | (559,867) | (800,916) |
Other comprehensive income |
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Items that may be subsequently reclassified to profit or loss: |
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Currency translation difference |
| (800,095) | 323,175 | 114,018 |
Total comprehensive income for the period |
| (1,215,555) | (236,692) | (686,898) |
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Attributable to: |
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Owners of the parent |
| (1,218,372) | (252,703) | (652,036) |
Non-controlling interest |
| 2,817 | 16,011 | (34,862) |
Total comprehensive income for the period |
| (1,215,555) | (236,692) | (686,898) |
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Loss per ordinary share attributable to owners of the parent during the period (expressed in €cents per share) |
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Basic and diluted | 3 | (0.16) | (0.25) | (0.33) |
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Consolidated Statement of Financial Position
As at 30 June 2016
Company number 05383355
| Note | 30 June 2016 | 30 June 2015 | 31 December 2015 |
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| (Unaudited) | (Unaudited) | (Audited) |
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| € | € | € |
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Non-current Assets |
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Goodwill |
| 2,444,145 | 2,444,145 | 2,444,145 |
Intangible assets |
| 3,009,510 | 3,038,543 | 3,106,280 |
Deferred taxation |
| 519,424 | 844,110 | 517,956 |
Property, plant and equipment |
| 54,881 | 67,243 | 48,887 |
Total non-current assets |
| 6,027,960 | 6,394,041 | 6,117,268 |
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Current Assets |
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Trade and other receivables |
| 3,199,197 | 2,943,505 | 3,096,647 |
Cash and cash equivalents |
| 2,906,080 | 4,394,076 | 3,839,642 |
Total current assets |
| 6,105,277 | 7,337,581 | 6,936,289 |
Current liabilities |
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Trade and other payables |
| (2,679,027) | (2,987,672) | (2,250,643) |
Borrowings |
| (466,886) | (244,917) | (604,036) |
Deferred revenue |
| (498,786) | (244,657) | (505,690) |
Current taxation |
| (145,967) | (11,727) | (163,892) |
Total current liabilities |
| (3,790,666) | (3,488,973) | (3,524,261) |
Net current assets |
| 2,314,611 | 3,848,608 | 3,412,028 |
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Non-current liabilities |
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Deferred taxation |
| - | (350,707) | - |
Total non-current liabilities |
| - | (350,707) | - |
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Net Assets |
| 8,342,571 | 9,891,942 | 9,529,296 |
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EQUITY |
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Share capital | 4 | 7,068,808 | 7,044,337 | 7,068,808 |
Share premium |
| 9,281,835 | 9,232,891 | 9,281,835 |
Reverse acquisition reserve |
| (4,016,334) | (4,016,334) | (4,016,334) |
Shares to be issued |
| - | - | - |
Foreign currency translation reserve |
| (522,039) | 487,213 | 278,056 |
Retained loss |
| (3,667,350) | (3,107,565) | (3,277,903) |
Equity attributable to owners of the parent |
| 8,144,920 | 9,640,542 | 9,334,462 |
Non-controlling interest |
| 197,651 | 251,400 | 194,834 |
Total equity |
| 8,342,571 | 9,891,942 | 9,529,296 |
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Consolidated Statement of Changes in Equity
For the six months ended 30 June 2016
Attributable to equity shareholders of the parent
Group | Share capital | Share premium | Reverse acquisition reserve |
Shares to be issued | Foreign currency translation reserve | Retained loss | Total |
Non-controlling interest | Total |
| € | € | € | € | € | € | € | € | € |
As at 1 January 2016 | 7,068,808 | 9,281,835 | (4,016,334) | - | 278,056 | (3,277,903) | 9,334,462 | 194,834 | 9,529,296 |
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Loss for the period | - | - | - | - | - | (418,277) | (418,277) | 2,817 | (415,460) |
Other comprehensive income for the period - items that may be subsequently reclassified to profit or loss |
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Currency translation difference | - | - | - | - | (800,095) | - | (800,095) | - | (800,095) |
Total comprehensive income for the period | - | - | - | - | (800,095) | (418,277) | (1,218,372) | 2,817 | (1,215,555) |
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Share based payment transactions | - | - | - | - | - | 28,835 | 28,835 | - | 28,835 |
Shares issued net of issue costs | - | - | - | - | - | - | - | - | - |
Total transactions with owners, recognized directly in equity | - | - | - | - | - | 28,835 | 28,835 | - | 28,835 |
As at 30 June 2016 | 7,068,808 | 9,281,835 | (4,016,334) | - | (522,039) | (3,667,345) | 8,144,925 | 197,651 | 8,342,576 |
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Group | Share capital | Share premium | Reverse acquisition reserve |
Shares to be issued | Foreign currency translation reserve | Retained loss | Total |
Non-controlling interest | Total |
| € | € | € | € | € | € | € | € | € |
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As at 1 January 2015 | 6,215,381 | 6,529,476 | (4,016,334) | - | 164,038 | (2,548,352) | 6,344,209 | 278,611 | 6,622,820 |
Loss for the period | - | - | - | - | - | (575,878) | (575,878) | 16,011 | (559,867) |
Other comprehensive income for the period - items that may be subsequently reclassified to profit or loss |
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Currency translation difference | - | - | - | - | 323,175 | - | 323,175 | - | 323,175 |
Total comprehensive income for the period | - | - | - | - | 323,175 | (575,878) | (252,703) | 16,011 | (236,692) |
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Share based payment transactions | - | - | - | - | - | 16,665 | 16,665 | - | 16,665 |
Non-controlling interest arising on business combination | - | - | - | - | - | - | - | 5,693 | 5,693 |
Non-controlling interest arising on business disposal | - | - | - | - | - | - | - | (48,915) | (48,915) |
Shares issued net of issue costs | 828,956 | 2,703,415 | - | - | - | - | 3,532,371 | - | 3,532,371 |
Total transactions with owners, recognized directly in equity | 828,956 | 2,703,415 | - | - | - | 16,665 | 3,549,036 | (43,222) | 3,505,814 |
As at 30 June 2015 | 7,044,337 | 9,232,891 | (4,016,334) | - | 487,213 | (3,107,565) | 9,640,542 | 251,400 | 9,891,942 |
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As at 1 January 2015 | 6,215,381 | 6,529,476 | (4,016,334) | - | 164,038 | (2,548,352) | 6,344,209 | 278,611 | 6,622,820 |
Loss for the financial year | - | - | - | - | - | (766,054) | (766,054) | (34,862) | (800,916) |
Other comprehensive income for the period - items that may be subsequently reclassified to profit or loss |
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Currency translation difference | - | - | - | - | 114,018 | - | 114,018 | - | 114,018 |
Total comprehensive income for the year | - | - | - | - | 114,018 | (766,054) | (652,036) | (34,862) | (686,898) |
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Share based payment transactions | - | - | - | - | - | 36,503 | 36,503 | - | 36,503 |
Non-controlling interest arising on business combination | - | - | - | - | - | - | - | (48,915) | (48,915) |
Shares issued net of issue costs | 853,427 | 2,752,359 | - | - | - | - | 3,605,786 | - | 3,605,786 |
Total transactions with owners, recognized directly in equity | 853,427 | 2,752,359 | - | - | - | 36,503 | 3,642,289 | (48,915) | 3,593,374 |
As at 1 January 2016 | 7,068,808 | 9,281,835 | (4,016,334) | - | 278,056 | (3,277,903) | 9,334,462 | 194,834 | 9,529,296 |
Group Cash Flow Statements
For the six months ended 30 June 2016
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| Six months to 30 June 2016 | Six months to 30 June 2015 | Year to 31 December 2015 |
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| (Unaudited) | (Unaudited) | (Audited) |
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| € | € | € |
Loss for the period before tax |
| (412,374) | (525,376) | (645,973) |
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Depreciation of property, plant and equipment |
| 10,108 | 10,092 | 22,066 |
Impairment of intangible assets |
| 3,300 | 3,000 | 3,243 |
Loss on sale of fixed assets |
| 185 | 1,921 | 1,921 |
Expenses settled by the issue of shares |
| 28,835 | 16,665 | 36,503 |
Finance costs (net) |
| 9,216 | 5,158 | 14,051 |
(Increase)/decrease in trade and other receivables |
| (102,550) | (105,975) | (471,037) |
Increase/(decrease) in payables |
| 284,330 | 550,050 | 695,113 |
Cash generated from/(used in) operations |
| (178,950) | (44,465) | (344,113) |
Interest expense |
| (9,673) | (5,288) | (15,169) |
Tax paid |
| (21,011) | (69,965) | (11,076) |
Net cash generated from/(used in) operating activities |
| (209,634) | (119,718) | (370,358) |
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Cash flows generated (used in) investing activities |
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Purchases of intangible assets |
| (245,456) | (112,869) | (315,075) |
Purchases of property, plant and equipment |
| (16,622) | (20,506) | (34,417) |
Payments to acquire subsidiary undertaking |
| - | (5,925) | - |
Cash in subsidiary disposed of |
| - | (29,736) | (29,736) |
Cash acquired with subsidiary undertaking |
| - | 22,202 | - |
Interest received |
| 457 | 139 | 1,118 |
Net cash used in investing activities |
| (261,621) | (146,695) | (378,110) |
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Financing activities |
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Net proceeds from issue of shares |
| - | 3,532,371 | 3,605,786 |
Net cash generated from financing activities |
| - | 3,532,371 | 3,605,786 |
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Net increase in cash and cash equivalents |
| (471,255) | 3,265,958 | 2,857,318 |
Exchange (losses) |
| (462,307) | (29,294) | (175,088) |
Cash and cash equivalents at beginning of period |
| 3,839,642 | 1,157,412 | 1,157,412 |
Cash and cash equivalents at end of period |
| 2,906,080 | 4,394,076 | 3,839,642 |
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1 Basis of preparation
The financial information contained in this half year financial report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The financial information for the half years ended 30 June 2016 and 30 June 2015 has been neither audited nor reviewed by the auditors.
The figures and financial information for the period ended 31 December 2015 are extracted from the latest published audited financial statements of the Group and do not constitute the statutory financial statements for that period.
The audited financial statements for the period ended 31 December 2015 have been filed with the Registrar of Companies. The report of the independent auditors on those financial statements contained no qualification or statement under section 498(2) or section 498(3) of the Companies Act 2006.
The financial information has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS) as adopted by the European Union and IFRIC interpretations. The financial information has been prepared under the historical cost convention. The statutory financial statements are prepared in accordance with IFRSs as adopted by the European Union.
The Group has applied consistent accounting policies in preparing the interim financial statements for the six months ended 30 June 2016, the comparative information for the six months ended 30 June 2015, and the financial statements for the period ended 31 December 2015.
As permitted, the Company has chosen not to adopt IAS 34 "Interim Financial Statements" in preparing this interim financial information.
The directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing these half-yearly financial statements.
2 Total revenue
Total revenue comprises:
| Six months to 30 June 2016 | Six months to 30 June 2015 | Year to 31 December 2015 |
| (Unaudited) | (Unaudited) | (Audited) |
Revenue from external customers: | € | € | € |
Licence and deployment fees | 1,693,328 | 1,173,140 | 3,845,525 |
Consultancy | 1,540,071 | 1,353,505 | 2,455,496 |
Transactional /loyalty revenue | 105,015 | - | 196,643 |
Support and maintenance charges | 445,826 | 102,222 | 309,277 |
Other fees | 257 | 207 | 432 |
| 3,784,497 | 2,629,074 | 6,807,373 |
3 Loss per share
Basic loss per share has been calculated by dividing the loss on ordinary activities after taxation by the weighted average number of shares in issue during the year. None of the share based payments were potentially dilutive at the year end and so there is no difference between the basic and diluted loss per share.
| Six months to 30 June 2016 | Six months to 30 June 2015 | Year to 31 December 2015 |
| (Unaudited) | (Unaudited) | (Audited) |
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Loss on ordinary activities after taxation | €418,277 | €575,878 | €766,054 |
Number of shares | 258,490,165 | 203,605,750 | 230,617,899 |
Loss per share (Euro cents) | (0.16) | (0.25) | (0.33) |
4 Share capital
Called up share capital
At 30 June 2016, there were 258,490,165 Ordinary shares of 1p each in the Company in issue.
Warrants and options
As at 30 June 2016, there were 11,000,000 warrants in issue and options to subscribe for 14,575,000 outstanding.
5 Availability of Interim Report
Copies of the Company's Interim Results are available on the Company's website www.vipera.com .