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Catenae Innovation PLC announced its half-yearly report for the six months ended 31 March 2022, reporting a loss of £287,168, revenues of £17,500, and a net asset position of £110,033. Post period end, the company entered into an agreement with Sanderson Capital Partners Limited for a convertible loan facility of up to £250,000. This facility comprises an initial drawdown of £125,000, with a further drawdown expected three months later.
| Date | 30 Sept 2022 |
| Time | 07:00:11 |
| Category | Results |
| ID | 2322B |
30 September 2022
Catenae Innovation PLC
("Catenae", the "Company" or the "Group")
Half Year Results
Convertible Loan
Catenae Innovation PLC (AIM: CTEA), the AIM quoted provider of digital media and technology, announces its half-yearly report for the six months ended 31 March 2022.
Financial overview
· Loss of £287,168 in the period under review (2021: £586,798) with revenues of £17,500 (2021: £12,308).
· Net asset position £110,033 (2021: £1,035,493).
Operational overview
· In January 2022, the Company completed the ISO 27001 accreditation audit on behalf of the International Standards Organisation (ISO), ensuring that the Company retained its accreditation.
· In March 2022, the Company secured the renewal of the Charlton Athletic Community Trust 'On Side' licence and support agreement with a contract value of £37,500 to be paid over the next three years. The Company received an additional £1,000 upfront payment for the migration to a new server.
· The Company continued its participation with the UK Government's Department for Digital, Culture, Media and Sport ("DCMS") in the development of the Digital Identity and Trust Attributes Framework Policy.
· The Company also promoted itself at Construction Industry events in London and Birmingham, focusing on its digital identity solutions.
Post period end
· In May 2022, the Company secured a c.£95,000 Digital Technology Solution purchase order with Saxavord UK Space Port. It is anticipated that c.£66,400 of this purchase order will be recognised as revenue in the second half of the current financial year.
Convertible Loan
The Company also announces that, post period end, it has entered into an agreement for a convertible loan facility for up to £250,000 ("Convertible Loan") with Sanderson Capital Partners Limited ("Sanderson Capital"), which will consist of an initial drawdown of £125,000 followed by a further drawdown expected three months thereafter.
At each 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 will be the closing mid-price of the Company's ordinary shares on the first day of dealings following the lifting of the suspension and restoration to trading of the Company's ordinary shares on AIM.
The new ordinary shares and warrant 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.
Guy Meyer, Chief Executive Officer of Catenae, said:
"Given the challenging trading conditions as a result of the Covid-19 pandemic and market uncertainty, the Company has been very prudent with our resources and has focused on securing contract wins.
"Our acquisition of Hyperneph has proved disappointing, but the board remains optimistic about the prospects of recouping monies committed as a result of that transaction.
"Catenae's ongoing consultation with DCMS in the development of the Digital Identity and Trust Attributes Framework Policy reflects the Company's standing in the sector. Our investment in software IP development also contributes to the future-proofing of our competitive product set offerings, not just within the Geo-spatial sector.
"We look forward to keeping the market updated on how these opportunities progress."
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:
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Catenae Innovation PLC |
+44 (0)191 580 8545 |
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Guy Meyer, Chief Executive Officer |
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Cairn Financial Advisers LLP (Nominated Adviser) |
+44(0)20 7213 0880 |
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Liam Murray / Jo Turner |
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Shard Capital Partners LLP (Broker) |
+44 (0)20 7186 9952 |
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Damon Heath |
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Yellow Jersey PR (PR & IR) |
+44 (0)20 3004 9512 |
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Sarah Hollins / James Lingfield |
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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.
Consolidated Statement of Comprehensive Income
For the Period Ended 31 March 2022
|
|
Unaudited six months ended 31 March 2022
£ |
Unaudited six months ended 31 March 2021
£ |
Audited year ended 30 Sept 2021
£ |
|
Revenue |
17,500 |
12,308 |
30,210 |
|
Cost of sales |
(6,000) |
- |
(14,400) |
|
Gross profit |
11,500 |
12,308 |
15,810 |
|
Administrative expenses |
(298,668) |
(599,116) |
(939,027)
|
|
Impairment losses |
- |
- |
(318,629) |
|
|
|
|
|
|
Loss from operations |
(287,168) |
(586,808) |
(1,241,846) |
|
Net Finance income/(expense) |
- |
10 |
(10) |
|
|
|
|
|
|
Loss before taxation |
(287,168) |
(586,798) |
(1,241,836) |
|
Taxation |
- |
- |
(5,112) |
|
Total comprehensive loss for the year |
(287,168) |
(586,798) |
(1,246,948) |
|
|
|
|
|
|
Loss attributable to: |
|
|
|
|
Owners of the parent |
(280,260) |
- |
(1,257,149) |
|
Non-controlling interest |
(6,908) |
- |
10,201 |
Consolidated Statement of Financial Position
For the Period Ended 31 March 2022
|
|
|
Unaudited six months ended 31 March 2022
£ |
Unaudited six months ended 31 March 2021
£ |
Audited year ended 30 Sept 2021
£ |
|
Non-current assets |
|
|
|
|
|
Tangible Assets |
|
6,518 |
- |
6,828 |
|
Intangible assets |
|
1 |
1 |
1 |
|
|
|
6,519 |
1 |
6,829 |
|
Current assets |
|
|
|
|
|
Trade and other receivables |
|
30,514 |
47,475 |
45,236 |
|
Cash and cash equivalents |
|
337,183 |
1,254,445 |
605,082 |
|
|
|
367,697 |
1,301,920 |
650,318 |
|
Current liabilities |
|
|
|
|
|
Trade and other payables |
|
(264,183) |
(248,428) |
(275,221) |
|
|
|
(264,183) |
(248,428) |
(275,221) |
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
Interest-bearing loans |
|
- |
(18,000) |
- |
|
Total Liabilities |
|
(264,183) |
(266,428) |
(275,221) |
|
|
|
|
|
|
|
Net Assets/(Liabilities) |
|
110,033 |
1,035,493 |
381,926 |
|
|
|
|
|
|
|
Non-controlling Interest |
|
4,610 |
- |
11,518 |
|
Capital and reserves attributable to equity holders of the company |
|
|
|
|
|
Ordinary share capital |
|
570,078 |
551,773 |
562,441 |
|
Deferred share capital |
|
3,159,130 |
3,159,130 |
3,159,130 |
|
Share premium account |
|
19,665,458 |
19,663,223 |
19,657,821 |
|
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 |
|
(37,058,399) |
(36,107,789) |
(36,778,140) |
|
Total Equity |
|
110,033 |
1,035,493 |
381,926 |
Consolidated Statement of Cash Flows
For the Period Ended 31 March 2022
|
|
Unaudited six months ended 31 March 2022
£ |
Unaudited six months ended 31 March 2021
£ |
Audited year ended 30 Sept 2021
£ |
|
Loss for the period |
(287,168) |
(586,798) |
(1,246,948) |
|
Adjustments for: |
|
|
|
|
Impairment of investments |
- |
- |
318,629 |
|
Net bank and other interest (income) / charges |
- |
(10) |
(10) |
|
Issue of share options / warrant charge |
- |
- |
- |
|
Services settled by the issue of shares |
- |
48,000 |
72,704 |
|
Net (loss) before changes in working capital |
(287,168) |
(538,808) |
(855,625) |
|
(Increase) / decrease in trade and other receivables |
15,034 |
(34,766) |
(24,633) |
|
(Decrease) / increase in trade and other payables |
(11,038) |
(5,898) |
(112,896) |
|
Cash from operations |
(283,172) |
(579,472) |
(993,154) |
|
Interest received |
- |
10 |
10 |
|
Interest paid |
- |
- |
- |
|
Net cash flows from operating activities |
(283,172) |
(579,462) |
(993,144) |
|
Investing activities |
|
|
|
|
Investment in subsidiary |
- |
- |
217,500 |
|
Net cash flows from investing activities |
- |
- |
(217,500) |
|
Financing Activities |
|
|
|
|
Issue of ordinary share capital |
15,273 |
1,119,864 |
1,119,683 |
|
Repayment of loans |
- |
- |
(18,000) |
|
New loans raised |
- |
- |
- |
|
Net cash flows from financing activities |
15,273 |
1,119,864 |
1,101,683 |
|
|
|
|
|
|
Net increase / (decrease) in cash |
(267,899) |
540,402 |
(108,961) |
|
Cash and cash equivalents at beginning of period |
605,082 |
714,043 |
714,043 |
|
Cash and cash equivalents at end of period |
337,183 |
1,254,445 |
605,082 |
Company Statement of Financial Position
For the Period Ended 31 March 2022
|
|
|
Unaudited six months ended 31 March 2022
£ |
Unaudited six months ended 31 March 2021 £ |
Audited year ended 30 Sept 2021
£ |
|
Non-current assets |
|
|
|
|
|
Intangible assets |
|
1 |
1 |
1 |
|
|
|
1 |
1 |
1 |
|
Current assets |
|
|
|
|
|
Trade and other receivables |
|
24,242 |
47,475 |
45,237 |
|
Cash and cash equivalents |
|
332,209 |
1,254,445 |
539,842 |
|
|
|
356,451 |
1,301,920 |
585,079 |
|
Current liabilities |
|
|
|
|
|
Trade and other payables |
|
(255,828) |
(248,428) |
(226,660) |
|
|
|
(255,828) |
(248,428) |
(226,660) |
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
Interest-bearing loans |
|
- |
(18,000) |
- |
|
Total Liabilities |
|
(255,828) |
(266,428) |
(226,660) |
|
|
|
|
|
|
|
Net Assets/(Liabilities) |
|
100,624 |
1,035,493 |
358,420 |
|
|
|
|
|
|
|
Capital and reserves attributable to equity holders of the company |
|
|
|
|
|
Ordinary share capital |
|
570,078 |
551,773 |
562,441 |
|
Deferred share capital |
|
3,159,130 |
3,159,130 |
3,159,130 |
|
Share premium account |
|
19,665,457 |
19,663,223 |
19,657,821 |
|
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 |
|
(37,063,197) |
(36,107,789) |
(36,790,128) |
|
Total Equity |
|
100,624 |
1,035,493 |
358,420 |
Company Statement of Cash Flows
For the Period Ended 31 March 2022
|
|
Unaudited six months ended 31 March 2022
£ |
Unaudited six months ended 31 March 2021 £ |
Audited year ended 30 Sept 2021
£ |
|
Loss for the period |
(273,069) |
(586,798) |
(1,269,137) |
|
Adjustments for: Impairment of investment |
|
|
320,000 |
|
Net bank and other interest (income) / charges |
- |
(10) |
(10) |
|
Issue of share options / warrant charge |
- |
- |
- |
|
Services settled by the issue of shares |
- |
48,000 |
72,704 |
|
Net (loss) before changes in working capital |
(273,069) |
(538,808) |
(876,443) |
|
(Increase) / decrease in trade and other receivables |
20,995 |
(34,766) |
(24,633) |
|
(Decrease) / increase in trade and other payables |
29,168 |
(5,898) |
(157,318) |
|
Cash from operations |
(222,906) |
(579,472) |
(1,058,394) |
|
Interest received |
- |
10 |
10 |
|
Interest paid |
- |
- |
- |
|
Net cash flows from operating activities |
(222,906) |
(579,462) |
(1,058,384) |
|
Investing activities |
|
|
|
|
Investment in subsidiary |
- |
- |
(217,500) |
|
Net cash flows from investing activities |
- |
- |
(217,500) |
|
Financing Activities |
|
|
|
|
Issue of ordinary share capital |
15,273 |
1,119,864 |
1,119,683 |
|
Repayment of loans |
- |
- |
(18,000) |
|
New loans raised |
- |
- |
- |
|
Net cash flows from financing activities |
15,273 |
1,119,864 |
1,101,683 |
|
|
|
|
|
|
Net increase / (decrease) in cash |
(207,633) |
540,402 |
(174,201) |
|
Cash and cash equivalents at beginning of period |
539,842 |
714,043 |
714,043 |
|
Cash and cash equivalents at end of period |
332,209 |
1,254,445 |
539,842 |
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified 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 reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.