TIDMONDO
RNS Number : 8960T
Ondo InsurTech PLC
20 November 2023
20 November 2023
Ondo Insurtech Plc
("Ondo", the "Company")
Interim Results for the six months to 30 September 2023
Ondo Insurtech Plc (LSE: ONDO), the London-listed leader in
claims prevention technology for home insurers, is pleased to
announce its unaudited results for the six-month period ended 30
September 2023. A copy of the Interim Results is available on the
Company's website, www.ondoplc.com.
FINANCIAL HIGHLIGHTS
-- Revenue of GBP1.2 million for the six-month period ended 30
September 2023 (2022: GBP0.9 million) an increase of 24%
-- Recurring revenue from Software and Services of GBP0.7m
(2022: GBP0.5 million) an increase of 50%, consistent with our
strategic intent to drive recurring revenue, with an exit rate in
month of September at an annualised run rate of GBP1.7m
-- Reported operating loss of GBP1.6m (2022: loss GBP2.1
million) and adjusted loss before tax* GBP1.9 million (2022: GBP1.5
million)
-- Restructuring of 5-year loan notes with its largest
shareholder, HomeServe Assistance Limited, providing additional
non-dilutive financing flexibility and generating non -recurring
gain of GBP0.9 million
-- Raised GBP0.8m through an oversubscribed placing and
subscription in May 2023 to support the growing deployment pipeline
of the LeakBot system.
* Adjusted for non-recurring items
OPERATIONAL HIGHLIGHTS
-- 18,927 LeakBot units were shipped or sold and awaiting
shipment during the period, 61% up vs the same period a year ago
(2022: 11,752)
-- Total registered customers on platform at period end
approximately 84,000, 77% growth (2022: 47,000)
-- New US deals signed with Mutual of Enumclaw to rollout in
Washington state and with Pure Insurance to rollout in New York
state
-- 5 Year rollout agreed with Länsförsäkringar - the largest
home insurer in Sweden - now live in four regions with further
regions planned in the next 6-12 months
-- Post period deal signed with Nationwide - a top 10 homeowners
insurer and Fortune 100 company - to make LeakBot part of their
Smart Home Program in the US
-- Addressable Households under contract at 2.5m with 3%
penetration at 30 September 2023 (2022: 0.5m with 10% penetration)
an increase of 394%. Addressable Households increases further to 5m
post period with addition of Nationwide.
Enquiries:
Craig Foster, CEO
Kevin Withington,
Ondo InsurTech Plc CFO +44 (0) 800 783 9866
Dowgate Capital Ltd Russell Cook
(Broker & Financial Nick Chambers
Advisor) Charlie Hall +44 (0) 20 3903 7715
Cassiopeia Services
Ltd
(PR & Investor Relations) Stefania Barbaglio +44 (0) 7949 690338
CHAIRMAN'S STATEMENT
Today we are pleased to present the unaudited results for the
6-month period to 30 September 2023. In a relatively short period
since publishing our first audited Group financial results and in a
northern hemisphere summer period that can be quieter for new
partner initiatives, the Group has continued to demonstrate
substantial progress in the execution of its strategy, including in
the highly prospective US market.
Unit sales grew by 61% in the period and Registered customers
grew by 77% which resulted in the 50% growth in revenue from
Ongoing Software, Services and Repairs. This growth was primarily
driven by further penetration into our existing partners in the UK,
Denmark and Sweden.
Underpinning the Group's revenue projections in the short to
medium term, we were delighted to announce in July 2023 that our
pre-existing partner Länsförsäkringar had signed a new five-year
contract to support LeakBot's rollout across Sweden.
Länsförsäkringar is the largest non-life insurer in Sweden and has
approximately 2 million home insurance customers.
Länsförsäkringar first tested LeakBot in the Södermanland
regional pilot which delivered a 40% penetration of addressable
policyholders and an impressive 50% increase in new home insurance
sales, in addition to the prevention of water damage claims. If
LeakBot achieve the same results across the Länsförsäkringar Group,
then the total revenue opportunity is over GBP30 million to
Ondo.
Particularly notable have been the steps taken to enter the US,
a market with the structure and dynamic that promises very
considerable growth potential for the Group.
In June 2023, we announced that premium US insurer Mutual of
Enumclaw ("MOE") had signed a contract to distribute Ondo's LeakBot
system to homeowner insurance customers in Washington State,
followed in August 2023 by a new partnership with PURE Insurance
and then, post period end, in November 2023 the contract signed
with Nationwide.
Nationwide is a breakthrough opportunity in the United States
for the Group. Nationwide is a Top 10 US homeowner insurer, and a
Fortune 100 company. They have a Smart Home Program already live in
34 US states. LeakBot is now being integrated into that technical
platform and we look forward to seeing the customer launch into the
first US states in early 2024.
Building on its Green Economy credentials, the Group was excited
to announce in June 2023 the results of a pilot deployment by
Portsmouth Water to assess the ability of LeakBot devices to reduce
household water leakage. UK water regulator, Ofwat has created an
innovation fund of up to GBP100m to encourage solutions that can
drive water efficiency in England and Wales from 2024 onwards.
In further pursuit of this, the Group went on to announce in
July 2023 a new affiliate partnership with Waterwise - the leading
UK water efficiency NGO and in August 2023 a second pilot with
Southern Water. Ondo and Waterwise are collaborating to promote the
wise use of water, including supporting the rollout of technologies
such as LeakBot that can help reduce pressure on the UK's water
resources.
In May, the Group raised GBP0.8m through an oversubscribed
placing and subscription to support the growing deployment pipeline
of the LeakBot system. My fellow directors Kevin Withington and
Andy Morrison joined me in participating in the fund-raising with
details as set out in the announcement of 12 May 2023.
The traction demonstrated by the business has been recognised by
the market, with the shares attracting new buyers over the summer.
After the period end, in October 2023, Ondo announced the
appointment of Dowgate as brokers to the Company. With its active
wealth management arm and experience in addressing family office
and institutional investors, we believe this will help ensure that
the Company is in the right hands as it continues to expand its
operations and heads for cash break-even.
In generally difficult market conditions, the Group has
performed well. I would like to thank everyone for their
extraordinary effort over an extended period of sustained
activity.
Gregory Mark Wood CBE
Chairman
20 November 2023
CHIEF EXECUTIVE'S REPORT
Ondo has the opportunity, over the next few years, to create a
large and valuable technology company; a company founded in the UK,
listed in London, with a product Made in Britain and now being
exporting around the world - and since our last financial report we
have made further significant steps towards this ambition.
The need for our product is growing in the current
macro-economic environment. The Association of British Insurers
("ABI") reported in September that home insurance average claims
costs in the UK have increased by 24%(1) putting pressure on
insurers' loss ratios. A new World Wildlife Fund report in October
states that a looming water shortage crisis endangers water
resources and freshwater ecosystems valued at $58 trillion
annually(2) . Now, more than ever, there is a pressing need for
insurers to reduce claims costs and improve profitability, and for
Governments and societies to act to waste less water.
Operational Highlights
In this recent trading period, management has been laying the
right foundations to achieve the Company's vision of becoming a
world leader in claim prevention technology, and we have remained
focused on executing our strategy.
In Europe we were very pleased in July to announce the new
rollout contract with Länsförsäkringar ("LF") in Sweden. As
Sweden's largest non-life insurer with 2 million home insurance
customers, this partnership is a significant growth opportunity for
Ondo. Länsförsäkringar is taking a strategic approach to the
rollout and has decided to use the roll-out to drive mass adoption
of a new upgraded Länsförsäkringar app that is designed to deepen
and broaden their customer relationships across insurance and
banking products. LF customers will use the LF app to install
LeakBot, using LeakBot to help drive mass adoption of their app,
demonstrating the commitment and central role LeakBot is set to
play for LF over the coming months and years. While this technical
development work has delayed the immediate ramp in volumes that we
expected, it leaves us well placed for 2024.
The big news during the period under review is the significant
progress made in the United States.
The United States represents by far the largest opportunity for
Ondo. There are over 90,000,000 homeowners with household insurance
in the United States. It is a $133 billion a year insurance market.
Water damage is a major peril in the United States with $16 billion
of claims on water damage every year. On every policy there is over
$200 of underwriting cost allocated to water damage claims.
Together, this means that on a unit economic basis, the US is a
highly attractive market.
Our first big step was a new partnership announced in June with
Mutual of Enumclaw (approx. 100,000 homeowners insured) in the
Pacific Northwest, with activity starting in Washington State in
September (so having a relatively minor impact on the period
results).The campaign has begun well with leaks now being repaired
in Washington State. In August, we signed premium insurer PURE
(approx. 100,000 homeowners insured nationally) with a plan to
commence in New York State. The regulator has approved the activity
and campaigns are due to go live before the end of the calendar
year.
Last week, we announced a new deal with top 10 carrier and
Fortune 100 company Nationwide. The importance of this particular
contract for Ondo cannot be overemphasized. The Top 10 carriers
control 64% of the Homeowner insurance market in the United States.
Nationwide has developed a Smart Home Program that is live already
in 34 states, offering products such as Ting (a solution designed
to prevent house fires caused by electrical arcs). Customers
receive a policy premium discount for installing the product. We
are currently working to complete the technical work to integrate
LeakBot into Nationwide's Smart Home Platform and expect to launch
into the first state in early 2024. We then expect to expand across
the wider client book, assuming that we can demonstrate to
Nationwide that we are capable of executing in a way that can match
their demand and scale.
Looking ahead, a key focus for 2024 will be on maintaining
excellence of execution across territories to prove to our valued
partners that we can scale as required.
The management team is also pleased with progress on other
initiatives. The G4S pilot announced in June has successfully
concluded. G4S sell their security systems to homeowners via in
home security assessments (with a significant marketing investment
to source these leads). G4S ran a pilot with one of Denmark's
largest insurers offering their insurance customers a free LeakBot
system installed during an in-home security visit. Based on the
pilot's results, we are discussing terms for a possible rollout in
2024. We are also partnering with Australia's largest insurer IAG
to develop an outdoor version of the LeakBot device suitable for
the Australian market, with test units now located on site in
Sydney and we signed a new deal with Southern Water to further test
whether the UK water industry could use LeakBot to drive water
efficiency and reduce consumption. Given the focus of the UK
regulator OFWAT on this area this is a potentially compelling
additional route to market for Ondo.
Financial Highlights
Even though there were no new launches that made any major
impact on the numbers in the specific reporting period under
review, the registered customer base grew by +77% year-on-year
("YOY") to 84,000. Unit sales also grew by +61% YOY.
The change in pricing strategy towards prioritising recurring
revenues continued to impact the numbers. While unit sales growth
was +61%, upfront revenue from unit sales was flat at GBP0.5m for
the 6 months. Recurring revenue from Software, Services and Repairs
grew by +50%.
The prospect of continued growth is held out by the last month
annualised run rate of GBP1.7m in September 2023. We intend to
continue to drive recurring revenue in preference to one-off
upfront device fees, and recent US deals announced have been
consistent with this pricing strategy at $5 per month.
Notable in the accounts is the stock that we have built in the
last 6 months with a balance now worth GBP0.8m (at cost) which
relates to the GBP1m of deferred income where insurance customers
have prepaid for these deployments that will rollout in the coming
months. Given the recent contract wins and strong sales pipeline
this stoick build leaves us well positioned to deal with near to
medium-term demands without being limited by production
capacities.
Given the recent contractual wins with Länsförsäkringar and
Nationwide and the huge growth in the Addressable Households under
contract (as described below) the business is poised for a period
of significant growth and as such we expect that we will want to
raise additional capital during the next 12 months to invest to
fully pursue this opportunity - continuing our excellence of
execution on these contracts and supporting sales and marketing to
drive topline growth.
Outlook
The need for our product is growing, with inflated claims costs
for insurers, and increased pressure on water resources driven by
climate change and population growth. Ondo's partnerships are
increasingly shifting from small pilots to larger more strategic
initiatives that are core to our partners' long term strategies,
and the size of our partners is increasing.
In September 2022 the number of Addressable Households (defined
as the number of households that could be offered LeakBot via the
already signed contracts in place) was around 0.5m and we had
penetrated around 10% of those Addressable Households. As of
September 2023 this Addressable Household base was approaching 2.5m
driven primarily by the Länsförsäkringar rollout contract. With the
recent addition of Nationwide this would take our Addressable
Households to over 5 million - suggesting we have only now
penetrated around 1.5% of the opportunity represented by already
signed deals.
Ondo recently exhibited at the world's largest InsurTech
conference: InsurTech Connect in Las Vegas. I had the pleasure of
meeting with the Founder of Whisker Labs who created Ting - a
scalable self-install sensor supported by an in-home electrical
service that helps prevent fire claims. Ting has signed deals with
State Farm and Nationwide and currently has 500,000 live devices,
expanding at a rate of 40-50,000 units a month. At this same
conference four years ago the Internet of Things ("IOT") was a hot
new technology and there were multiple vendors with fresh VC
finance offering all manner of IOT sensors, platforms and
consultancy services offering to help insurers mitigate claims
costs through the power of IOT. This year there were really only
two vendors - Ondo's LeakBot and Whisker Lab's Ting - offering
scalable solutions, now proven in market, to home insurers. While
AI has replaced IOT as the "hot new tech", the size of the ITC
conference has grown significantly, and we had a very productive
conference in terms of the number and quality of leads from new
prospects in the United States.
The market is looking for a solution for water damage claims,
and because of our proprietary technology and unique value
proposition we have the answer for this $16bn problem. Now we need
to both (i) execute well on the signed deals and (ii) drive the
sales machine to capitalise on this momentum.
Thanks to all the team at Ondo who have worked so hard over the
last period to make these recent gains. We are all confident in our
strategy and in the success that lies ahead for Ondo, and it is
great that investors are starting to see it too.
Craig Foster
Chief Executive Officer
Ondo InsurTech PLC
CONSOLIDATED STATEMENT OF COMPRENSIVE INCOME
U naudited U naudited Audited
S ix months Ended S ix months Ended Period
Ended
31
March
30 September 2023 30 September 2022 2023
Note GBP'000 GBP'000 GBP'000
Revenue 1,186 959 2,384
Cost of sales (892) (617) (1,534)
Gross profit 294 342 850
Administrative expenses 5 (1,928) (1,695) (5,766)
Reverse acquisition expenses - (706) (956)
Operating loss (1,634) (2,059) (5,872)
Financial expense (265) (176) (351)
Gain on loan note liability derecognition 10 877
------------------ ----------------- -------
Loss before tax (1,022) (2,235) (6,223)
Tax credit - - 217
Loss for the period a nd total comprehensive loss (1,022) (2,235) (6,006)
================== ================= =======
Earnings per share attributable to equity owners
Basic and diluted (loss) per share (pence) 8 (1.37) (3.28) (9.13)
------------------ ----------------- -------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
As at As at As at
30 30 31
September September March
2023 2022 2023
Note GBP'000 GBP'000 GBP'000
Intangible assets 73 - 89
Property, plant and equipment 60 - 65
Non-current assets 133 - 154
----------- ---------- -----------------------
Current assets
Cash and cash equivalents 492 1,580 376
Inventories 808 258 423
Trade and other receivables 6 1,341 330 829
----------- ---------- -----------------------
Total current assets 2,641 2,168 1,628
----------- ---------- -----------------------
Total assets 2,774 2,168 1,782
=========== ========== =======================
Current liabilities
Trade and other payables 7 (2,419) (576) (2,020)
Total current liabilities (2,419) (576) (2,020)
----------- ---------- -----------------------
Net current liabilities 222 1,592 (392)
----------- ---------- -----------------------
Non-current liabilities
Loans and borrowings 10 (6,142) (6,401) (6,401)
----------- ---------- -----------------------
Total non-current liabilities (6,142) (6,401) (6,401)
----------- ---------- -----------------------
Total liabilities (8,561) (6,977) (8,421)
----------- ---------- -----------------------
Net liabilities (5,787) (4,809) (6,639)
----------- ---------- -----------------------
Equity
Share capital 4,046 3,408 3,408
Share premium 5,088 3,902 3,902
Share based payments reserve 217 214 170
Reverse acquisition reserve 21,769 21,769 21,769
Retained deficit (36,907) (34,102) (35,888)
----------- ---------- -----------------------
Total equity (5,787) (4,809) (6,639)
=========== ========== =======================
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share based
Share Share Reverse acquisition payments reserve Retained
capital premium reserve deficit Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 01 April 2023 3,408 3,902 21,769 170 (35,888) (6,639)
Issue of ordinary
shares 627 1,255 - - - 1,882
Cost of share
issued - (81) - - - (81)
Exercise of Options 11 12 - - - 23
Share based payment - - - 47 3 50
Loss for the period - - - - (1,022) (1,022)
------------ ----------- --------------------- ------------------ ------------------ ------------
At 3 0 September
2023 4,046 5,088 21,769 217 (36,907) (5,787)
============ =========== ===================== ================== ================== ============
Share Share Reverse acquisition Share based Retained
capital premium reserve payments reserve deficit Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 01 April 2022 3,408 3,909 21,769 164 (31,867) (2,617)
Share based payment - (7) - 50 - 43
Loss for the Period - - - - (2,235) (2,235)
At 3 0 September
2022 3,408 3,902 21,769 214 (34,102) (4,809)
============ =========== ===================== ================== ================== ============
Share Share Shares based payments Reverse Acquisition Retained
capital premium reserves earnings Total
GBP'000 GBP'000 GBP' 000 GBP'000 GBP'000 GBP'000
At 01 October 2021 28,250 - - (29,969) (1,719)
Issue of Ordinary
Shares 2,276 3,146 - - - 5,422
Cost of shares
issued - (192) - - - (192)
Leakbot Acquisition (27,118) 955 164 21,769 - (4,230)
Share based payment - (7) 93 - - 86
Exercise of options - - (87) - 87 -
Total Comprehensive
loss for the
period - - - - (6,006) (6,006)
At 31 March 2023 3,408 3,902 170 21,769 (35,888) (6,639)
========= ============= ====================== ==================== ============== ==========
CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
Period
S ix months Ended S ix months Ended Ended
30 September 30 September
2023 2022 31 March 2023
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Loss before income tax (1,022) (2,235) (6,223)
Adjustments:
Share based payments 50 42 85
R everse acquisition share based payment expense - 706 706
Depreciation and amortisation 24 - 13
Gain on loan note liability derecognition (877) - -
Financial expense 265 176 351
Movement in working capital
(Increase)/Decrease in trade and other receivables (513) (516) (669)
(Increase)/Decrease in Inventories (385) (258) (412)
Increase/(Decrease) in trade and other payables 753 (104) 1,217
------------------ ----------------- -------------
Cash used from operations (1,705) (2,189) (4,932)
Group tax relief received - - 217
------------------ ----------------- -------------
Net cash used in operations (1,705) (2,189) (4,715)
Cash flow from investing activities
C ash acquired with subsidiary - 1,670 1,670
Purchase of investments - (1,600) (1,600)
P urchase of tangible assets (3) - -
P urchase of intangible assets - - 96
Purchase of investments - - 71
------------------ ----------------- -------------
Net cash flow from investing activities (3) 70 237
Cash flows from financing activities
Issue of ordinary shares (net of costs) 1,824 3,148 6,580
Net cash flows from financing activities 1,824 3,148 6,580
------------------ ----------------- -------------
Net increase in cash and cash equivalents 116 1,029 2,102
Cash and cash equivalents at beginning of period 376 551 (1,726)
Cash and cash equivalents at end of period 492 1,580 376
================== ================= =============
The accounting policies and notes form an integral part of these
financial statements.
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL INFORMATION
For the six months ended 30 September 2023
1. General Information
Ondo InsurTech Plc (the "Company") was incorporated on 23
February 2021 in England and Wales, with registered number 13218816
under the Companies Act 2006. The registered office of the company
is 6(th) Floor 60 Gracechurch Street, London, United Kingdom, EC3V
0HR.
The Company was initially incorporated with the name Spinnaker
Acquisitions Limited. On 12 May 2021, the Company re-registered as
a public limited company.
On 21 March 2022, the Company completed the acquisition of
Leakbot Limited via a reverse takeover which resulted in the
Company becoming the ultimate holding company of "the Group". On 22
March 2022, the Company changed its name from Spinnaker
Acquisitions Plc to Ondo InsurTech Plc.
During the period ended 30 September 2023, the principal
activity of the Group was that of the provision of domestic leak
detection services and technology to the home insurance industry
and homeowners.
2. Basis of preparation
The consolidated interim financial information and accompanying
notes are based on the following policies which have been
consistently applied:
The financial information of the Company has been prepared in
accordance with the Companies Act 2006 and UK-adopted International
Financial Reporting Standards ("UK adopted IFRS").
The financial information presented in Sterling, which is the
Company's functional and presentational currency and has been
prepared under the historical cost convention.
The preparation of financial information in conformity with UK
adopted IFRS's requires the use of certain critical accounting
estimates. It also requires management to exercise its judgement in
the process of applying the Company's Accounting Policies.
On 21 March 2022, Ondo InsurTech Plc completed the acquisition
of Leakbot Limited ("Leakbot") via a reverse takeover which
resulted in the Company becoming the ultimate holding company of
the Group. The transaction did not meet the definition of a
business combination under IFRS 3 and was under the scope of IFRS
2. In accordance with IFRS 2, a share based payment expense equal
to the deemed cost of the acquisition less the fair value of the
net assets of the Company at acquisition was recognised. The
comparatives represent that of the legal subsidiary and accounting
acquirer, Leakbot.
The financial information for the interim period covers the
unaudited period from 1(st) April 2023 to 30 September 2023 with
the comparison being the 1(st) April 2022 to 30 September 2022.
The comparative financial information for the period ended 31
Match 2023 in this interim report does not constitute statutory
accounts for that period under section 435 of the Companies Act
2006. Statutory accounts for the period ended 31 March 2023 have
been reported on by the Group's auditors and delivered to the
Registrar of Companies. The comparative for the period ended 31
March 2023 is for the period from 01 October 2021 to 31 March
2023.
The auditors' report on the accounts for the period ended 31
March 2023 was unqualified but did contain a material uncertainty
related to going concern as follows:
"Material uncertainty related to going concern.
We draw attention to note 2 in the financial statements, which
indicates that the group's and Parent Company's ability to continue
as a going concern relies heavily on the successful execution of
their strategic plan within the next twelve months from the
approval of the financial statements. The achievement of the plan's
objectives is dependent on factors such as securing new
partnerships, finalising ongoing negotiations with potential
customers, and raising additional funds. The outcomes are
contingent on the successful realisation of strategic initiatives,
external market conditions and investor appetite.
As stated in note 2, these events or conditions indicate that a
material uncertainty exists that may cast significant doubt on the
group's and parent company's ability to continue as a going
concern. Our opinion is not modified in respect of this matter.
In auditing the financial statements, we have concluded that the
directors' use of the going concern basis of accounting in the
preparation of the financial statements is appropriate. Our
evaluation of the directors' assessment of the group's and parent
company's ability to continue to adopt the going concern basis of
accounting included:
-- Reviewing management's assessment of the going concern basis
drawn up to 31 July 2024, including their evaluation of future
funding requirements and funding availability, while challenging
their key assumptions and inputs to ensure reasonableness and
appropriateness;
-- Agreeing the underlying cash flow projections to
management-approved forecasts, examining their alignment with the
strategic plan and progress towards its successful
implementation;
-- Assessing the group's and parent company's liquidity and the
impacts on the reliability of the going concern evaluation;
-- Assessing whether key assumptions and inputs to the model
were reasonable, in light of the group's relevant principal risks
and uncertainties, and conducting our independent assessment of
those risks; and
-- Conducting sensitivity analysis on management's key
assumptions and inputs against plausible scenarios."
The directors' assessment on going concern at the date of the
consolidated interim financial information is disclosed in note
4.
3. Estimates and judgements
The preparation of consolidated interim financial statements
requires management to make judgements, estimates and assumptions
that affect the application of accounting policies and the reported
amounts of assets and liabilities, income and expense.
Actual results may differ from these estimates. In preparing
these condensed consolidated interim financial statements, the
significant judgements made by management in applying the Group's
accounting policies and the key sources of estimation uncertainty
were:
Share based payments
The estimates of share-based payment costs require that
management selects an appropriate valuation model and makes
decisions on various inputs into the model, including the
volatility of its own share price, the probable life of the options
before exercise, and behavioral consideration of employees. A
significant element of judgement is therefore involved in the
calculation of the charge.
4. Going concern
In accordance with the QCA Corporate Governance, the Directors
have assessed going concern over a twelve-month period from the
approval of these financial statements i.e., up to 30 November
2024. As part of this assessment, the Directors have analysed the
prospects of the Group by reference to its current financial
position, recent trading trends and momentum, forecasts and
financial projections, strategy, economic model and the principal
risks and mitigating factors.
The strategic plan forms the base case for the scenario
modelling that underpins the long term going concern assessment. It
has been built out from the Board approved budget. Principal
assumptions include continued activity with existing insurance
partners, and new activity with pipeline partners; pricing
assumptions based on signed contracts or active negotiations;
direct cost assumptions based on current run-rates; assumptions
about fixed overhead and operational costs being largely stable
through the period; some limited capital expenditure in technology
and manufacturing.
The Directors have reviewed the Group's forecasts and
projections for the 12-month period to November 2024 (the
'Assessment Period'), which is aligned to the Group's current
strategic planning cycle. The Directors have assessed the future
viability of the Group by reviewing the Base Case and risk
scenarios based on the Principal Risks. These circumstances have
been evaluated based on principal and emerging risks identified by
management through its risk management process, with consideration
given to broader social economic factors.
The Directors have concluded that it will be necessary to raise
additional funding within the Assessment Period for the Group to
implement its strategic plan within the proposed timeframe.
During the period ended 30 September 2023, a placing was
completed raising GBP815,000, this is alongside the exercise of
share warrants and options for GBP1,089,187. The Directors are
confident that further fund-raising could be undertaken, if
required, to support business growth.
The Director's note that there remains 27.3m equity warrants in
issue at the end of the period. The total value of these is GBP6.1m
with an average exercise price of 22.5p. The Directors note that if
a proportion of these warrants are exercised, this could provide
additional funding but that this remains uncertain and dependent on
market conditions.
Overall, the Directors have a reasonable expectation that the
Group will be able to access adequate funding via debt or equity to
continue in operational existence for a period being at least the
next twelve months from the date of issue of the Interim results.
On this basis, the Directors continue to adopt the going concern
basis in preparing these accounts.
5. Operating expenses by nature
Unaudited Unaudited Audited
Six months Six months Period
Ended Ended Ended
30 September 30 September
2023 2022 31 March 2023
GBP'000 GBP'000 GBP'000
Directors' remuneration 324 164 568
Professional fees 194 284 1,218
Share based payments 50 42 -
Staff cost 914 789 2,794
Depreciation and amortisation 24 - 13
Contract staff - 91 138
IT systems & platform 236 121 476
Sundry expenses 186 204 559
1,928 1,695 5,766
------------- ------------ -------------
6. Trade and Other receivables
As at 30 September As at 30 September As at 31 March
2023 2022 2023
GBP' 000 GBP' 000 GBP' 000
Trade Receivables 8 98 2 92 630
Other Receivables 443 3 8 199
1,3 41 330 829
------------------- ------------------- ---------------
7. Trade and Other payables
As at 30 As at 30 September As at 31
September 2022 March 2023
2023
GBP' 000 GBP' 000 GBP' 000
Trade Payables 1,123 157 795
Other Payables 1 42 12 108
Deferred Revenue 1,050 180 655
Accruals 104 51 111
----------- ------------------- ------------
S ub Total 2,419 4 00 1, 669
L oan Note interest - 1 76 3 51
2,419 576 2,020
----------- ------------------- ------------
8. Earnings per share
The basic earnings per share is calculated by dividing the loss
attributable to equity shareholders by the weighted average number
of shares in issue.
The Company had in issue 80,922,736 ordinary shares at 30
September 2023 with, 68,169,162 ordinary shares at 30 September
2022 and 68,169,162 as at 31 March 2023.
The loss attributable to equity holders and weighted average
number of ordinary shares for the purposes of calculating diluted
earnings per ordinary share are identical to those used for basic
earnings per ordinary share.
Unaudited Unaudited Audited
Six months Six months Year
Ended Ended Ended
31
30 September 30 September March
2023 2022 2023
Loss for the period attributable to equity holders (GBP'000) (1,022) (2,235) (6,006)
Weighted average number of shares in issue (000s) 74,435 68,169 65,760
Basic and diluted (l oss) per share (p ence ) (1.37) (3.28) (9.13)
============= ============= =======
9. Share based payments.
Equity-settled share-based payments are measured at fair value
(excluding the effect of non-market based vesting conditions) at
the date of grant.
The fair value determined at the grant date of the
equity-settled share-based payments is expensed on a straight-line
basis over the vesting period, based on the Company's estimate of
shares that will eventually vest and adjusted for the effect of
non-market based vesting conditions.
On 19 May 2023, 250,000 share options were granted with an
exercise price of GBP0.12 and an expiry period of 4 years.
The fair value of the options has been calculated using the
Black-Scholes valuation model. The assumptions used in the fair
value calculation were as follows:
Options O ptions O ptions O ptions O ptions
Date of grant 7 March 2022 7 March 2022 7 March 2022 1 October 2022 19 May 2023
Number 653,333 1,864,520 3,374,766 689,071 250,000
Exercise price (pence) 12p 5p 12p 12p 12p
Risk free interest (%) 1.18% 1.12% 1.12% 1.18% 3.91%
Expected volatility (%) 18% 18% 18% 61% 74%
Expected life (years) 3.75 2 4 4 4
Fair value 0.02 0.07 0.02 0.02 0.11
Option life 4 years 2 years 4 years 4 years 4 years
The total share-based payment expense recognised in the income
statement for the period ended 30 September 2023 in respect of the
share options granted was GBP50,159.
Volatility was determined by reference to the standard deviation
of daily share prices.
10. Loans and borrowings
On 21 March 2022, the Company issued GBP6,401,000 loan notes to
the seller for acquisition of Leakbot Limited (the "Loan Notes").
The Loan Notes carry a fixed interest rate of 10% per annum on the
principal amount of the notes outstanding from time to time. The
first interest payment due on this loan is on 31 March 2024.
On 9 July 2023, the Company agreed with the Loan Note holders to
revise the terms of the Loan Note.
The key changes are:
-- First repayment of principal deferred from 31 March 2025 to 31 March 2026
-- Final redemption extended by 1 year to 31 March 2029 from 31 March 2028
-- Interest due from 31 March 2024 to 31 March 2025 is rolled up
and deferred with repayments made in 4 equal instalments in line
with the revised repayment of principal.
-- Interest rate increased from 10% to 12% from 31 March 2024
In accordance with IFRS 9, interest has been calculated using
the effective interest rate over the relevant period with interest
of GBP265,625 (31 March 2023 GBP351,878). In line with IFRS 9, the
changes in the Loan Note terms have led to a derecognition of the
original loan note instrument and the establishment of the new
instrument reflecting the revised terms. This derecognition has led
to a gain of GBP877,418 during the period.
Unaudited Unaudited Audited
Six months Six months Year
Ended Ended Ended
30 September 30 September 31 March
2023 2022 2023
GBP'000 GBP'000 GBP'000
Interest expense 265 176 351
Gain on loan liability (877) - -
derecognition
612 1 76 351
------------- ------------- ---------
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR FLFLTLSLDLIV
(END) Dow Jones Newswires
November 20, 2023 02:00 ET (07:00 GMT)
Grafico Azioni Ondo Insurtech (LSE:ONDO)
Storico
Da Apr 2024 a Mag 2024
Grafico Azioni Ondo Insurtech (LSE:ONDO)
Storico
Da Mag 2023 a Mag 2024