TIDMING
RNS Number : 0221Z
Ingenta PLC
11 May 2023
Ingenta plc
(the 'Group' or the 'Company')
Final Audited Results
Ingenta plc (AIM: ING) a leading provider of software and
services to the global publishing industry, announces its final
audited results for the year ended 31 December 2022.
Financial Key Points
-- Revenue increased 4% to GBP10.5m (2021: GBP10.1m).
-- Annual Recurring Revenue (ARR)* of GBP9.0m representing 86%
of total revenue (2021: GBP8.9m, 88%).
-- Operating cash inflows increased 25% to GBP2.5m in the year (2021: GBP2.0m).
-- Cash balances at year end of GBP2.4m (2021: GBP3.0m). The
adjusted cash balance prior to share purchase costs was GBP4.6m
(2021: GBP3.3m).
-- Completion of a GBP2m tender offer in November 2022
comprising 1,796,484 shares at a tender price of 115 pence (2021:
440,826 shares purchased for GBP315,771).
-- Adjusted EBITDA** increased 33% to GBP2.0m (2021: GBP1.5m).
-- Net profit of GBP1.5m*** (2021: GBP1.8m).
-- Full year dividend increased 15% to 3.45 pence (2021: 3.0
pence). Proposed final dividend of 2.25 pence per share, subject to
shareholder approval at the 2023 AGM (2022: 2 pence).
-- Earnings per share of 9.02 pence (2021: 10.93 pence). The
earnings per share has been impacted by a tax credit of GBP0.3m in
the year (2021: GBP1.1m).
Operational Key Points
-- Two Customers transitioned along a defined upgrade path from
Ingenta Connect to Edify. The product upgrade path allows customers
to add functionality to their software as they grow and evolve over
time.
-- Expertise and success in offering managed and hosting
services in our Commercial unit is being rolled out across the
business. These services incorporate a wider remit over a
customer's technology environment and management of the Ingenta
application.
-- Expansion of sales and marketing efforts with a focus on
leveraging revenue gains made in 2022. The Group will be adding key
skills and experience to the existing teams in order to improve
sales conversion rates in strategic markets.
Current trading
-- Strong trading in early 2023 as a number of key projects
complete, generating growth in revenues and profit over the prior
period.
-- Revenue growth is being driven by existing customers, with
extended sales cycles persisting for sales to new customers.
-- New Canadian media customer added to the Commercial customer
base. This addition further widens the reach into new vertical
markets for the Group's intellectual property management
solutions.
* ARR - Revenue generated and recognised in the year from
annually recurring software support contracts, hosting services and
managed services.
**Adjusted EBITDA - EBITDA before impairment, gain / loss on
disposal of fixed assets, foreign exchange gain / loss and
exceptional non-recurring costs . See note 2 for details.
***Net profit in 2022 includes a GBP0.3m deferred tax credit
movement (2021: GBP1.1m).
Scott Winner, Chief Executive Officer, commented:
"After all the hard work remodelling the core functions of the
business, and revitalising our product suite, I am extremely
pleased to report on a full year of revenue growth. These changes
were fundamental to not only allow us to grow but to do so
profitably and the numbers released today are a testament to that.
However, this is only the beginning, and we are now fully focussed
on delivering success in 2023.
Our Intellectual Property management solutions and web-based
content platforms will be central to driving growth, augmented by
our proven expertise in offering wrap around technology and
resource services to customers who no longer wish to service
Ingenta's applications themselves.
Diversification of our markets remains an important part of our
sales and marketing strategy, and I am pleased to report we will be
expanding our teams to capitalise on the momentum achieved in
2022."
Certain of the information contained within this announcement is
deemed by the Company to constitute inside information as
stipulated under the UK version of the EU Market Abuse Regulation
(2014/596) which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018, as amended and supplemented from time to
time.
For further information please contact:
Ingenta plc
Scott Winner / Jon Sheffield Tel: 01865 397 800
Cenkos Securities plc
Katy Birkin / Callum Davidson Tel: 020 7397 8900
Chairman's statement
Overview
2022 has been a significant year for the Group, in that it
layers revenue growth onto the previously reported successes made
in streamlining and optimising operations to drive efficiency.
These results are enormously encouraging given the uplift in all
our key profitability measures and give a hint of the potential for
the business going forward. The revenue growth demonstrates the
resonance of our offering with customers and provides further
insight into future opportunities.
Within the Commercial business, growth has been driven by our
wrap around service offering which is designed to take technology
and resourcing concerns away from customers and allow them to
concentrate on their core activities. Examples of this include our
expertise in deploying tailored hosting environments for our
software solutions. This has been a real success story and has been
taken up by several key customers, and we hope more will follow.
Furthermore, we have also supplied additional recurring managed
services resource to take on peripheral technology routines and
services to support the customer's chosen deployment. Looking
forward, although some of these activities are already prevalent in
the Content business, we have identified opportunities to cross
sell the managed service offering to target specific data
management and reporting routines customers seek to outsource.
The Content business had a slightly different flavour of success
in 2022. Here, we industrialised the upgrade path of our solutions
and successfully migrated two significant Ingenta Connect customers
onto our enterprise focussed Edify solution. This is an important
opportunity for the Group as it allows our customers to grow with
us, adding features and functionality at a time that suits them. In
addition to these upgrades, the Content business also added a new
US customer within the wider trade organisation space and this
diversification away from traditional publishing markets towards
trade associations and NGOs remains a strategic objective for the
Group.
Shareholders' returns and dividends
Ingenta successfully returned GBP2.07m of cash to shareholders
by way of a tender offer completed in November 2022. A total of
1,796,484 Ordinary shares were repurchased and cancelled at a fixed
price of 115 pence. The Group also paid an interim dividend of 1.2
pence per share (2021: 1 pence) and the Directors declared their
intention to pay a final dividend of 2.25 pence per share (2022: 2
pence) subject to approval at the forthcoming AGM. The Board
remains committed to generating shareholder value by a combination
of capital appreciation, share buybacks and dividend payments.
Outlook
The results for 2022 have demonstrated the Group's ability to
leverage its sound fundamentals and drive returns for all
stakeholders. In that respect, I'm pleased to report that the
business has stepped up its activities in business development and
is enhancing its sales and marketing teams to build on 2022's
growth. The Group believe this growth will be driven by its Content
and Commercial business units which offer a broad spectrum of
products and services which are applicable to both new and existing
customers. Additionally, the target markets are widening as an
increasing number of organisations look to better manage their
intellectual property and our sales pipeline activity fully
reflects this.
M C Rose
Chairman
10 May 2023
Financial review
Business Strategy
Ingenta is a provider of mission critical software and services
to the publishing sector, with growth aspirations in adjacent
industries. Operationally, the Group has moved to a product
agnostic services architecture enabling it to offer an integrated
approach to servicing customers whereby service levels and software
are standardised, and as a result, resources are utilised more
efficiently. The Group's focus is to accelerate growth in recurring
revenue via the sale of software as a service wherever
possible.
Product review
Ingenta Commercial
Ingenta Commercial provides a variety of modular publishing
management systems for both print and digital products. A core area
of expertise is within Intellectual Property and the Group is
looking to leverage its existing expertise in contracts, rights and
royalties management by expanding into adjacent verticals. The
Group's conChord solution is designed for the music industry and
has already been deployed and we believe there are further
opportunities in other verticals where IP management is an
increasing concern for customers.
Reported revenues increased by GBP0.6m to GBP7.3m (2021:
GBP6.7m) driven by the increased uptake of hosting consultancy
services and the Group's managed service revenue stream which aims
to provide peripheral support for customers wishing to outsource
internal IT activities. As anticipated, this increased the
proportion of revenues that are recurring in nature from GBP6.1m to
GBP6.4m. Adjusted earnings before interest, tax, depreciation and
amortisation (Adjusted EBITDA - see note 2) increased from GBP0.78m
to GBP1.62m. This marked improvement has been achieved via a number
of factors. Firstly, operations have been optimised so that
activities can be completed as efficiently as possible.
Furthermore, improvements have been made to reduce the support
burden which had been evident in prior years. Also, as mentioned in
the Ingenta Content section below, there was a review and
reallocation of group costs relating to each business unit's
consumption of cloud based infrastructure.
Ingenta Content
The Ingenta Content suite of products enable publishers of any
size, discipline or technical proficiency to convert, store,
deliver and monetise digital content on the web.
Annual revenue decreased slightly from GBP2.4m to GBP2.3m
largely as a result of new sales taking longer to convert in 2022.
Two of the three new implementation projects only started earning
revenue in Q4 although this will add to reported revenue in 2023.
Importantly, two of the new implementations were upgrade projects
for existing customers wanting to migrate from Ingenta Connect to
Edify which ensures the Group can accommodate its customers as they
grow. Adjusted EBITDA (see note 2) decreased from GBP0.5m to
GBP0.2m and was a result of the lower new sales and a reallocation
of group costs relating to shared cloud infrastructure.
Ingenta Advertising
Ingenta Advertising provides a complete browser-based multimedia
advertising, CRM and sales management platform for content
providers.
The business anticipates that the Group's Advertising offering
will become a component of the larger Commercial and Content
Products divisions and, in time, its revenues will be less clearly
distinguished as a separate CGU. Revenue declined to GBP0.6m (2021:
GBP0.8m) as project work was restricted in the year as customers
held back on system enhancements due to economic uncertainty.
Adjusted EBITDA for the advertising division (note 2) decreased
marginally from GBP0.24m to GBP0.16m, largely as a result of
declining revenue.
PCG
The PCG consulting arm provides a range of non-software services
designed to support and drive a business's sales strategy.
Strategically, the team's skills are being increasingly used to
drive sales pipeline for the wider Group in addition to their own
customer portfolio work.
Annual revenue was stable at GBP0.3m (2021: GBP0.3m). The
division's business is driven from sales commission and retainer
fees both of which remained consistent over the periods. As
expected, adjusted EBITDA (note 2) was stable at a loss of GBP0.1m.
The Group's policy is to make use of PCG resources to enhance the
wider Group marketing function in order to improve sales pipeline
growth across the business. Going forward, it is envisaged that PCG
and Advertising will no longer be reported as separate business
units and will fold into Ingenta Content and Ingenta
Commercial.
Financial Performance
Group revenue increased to GBP10.5m (2021: GBP10.1m) with the
recurring element calculated at GBP9.0m or 86% (2021: GBP8.9m and
88%). Although revenue has increased, the Group's cost of sales
declined from GBP5.5m to GBP5.3m as the previous actions taken to
streamline operational efficiency became fully functional.
Consequently, gross profit increased to GBP5.1m (2021:
GBP4.7m).
Sales and marketing spend was stable at GBP0.7m but is expected
to increase in 2023 as the Group seeks to build on the sales
momentum achieved this year. Administrative costs have also
remained broadly stable at GBP3.2m helping deliver profit from
operations of GBP1.2m (2021: GBP0.8m).
No significant tax charge is anticipated for 2022 as the Group
continues to utilise brought forward tax losses. Going forward, the
Group estimate they will be able to use GBP15.4m and $6.7m of the
available tax losses in the UK and US (see note 8 for further
details). Additionally, the Group's assessment of its deferred tax
asset relating to these losses increased, generating a tax credit
in the year of GBP0.3m (see note 3 for further details).
Financial Position
Non-current assets include goodwill and intangibles recognised
on historic acquisitions. In 2022, Goodwill relates solely to the
core Content platform software which will be used to drive growth
in the future. Goodwill relating to historic acquisitions is tested
for impairment each year using discounted cashflows. No impairment
was identified in 2022. Property, plant and equipment reductions
are a direct result of the Group's infrastructure strategy which
has seen the Group leverage more Cloud based services and reduce
its physical business premises. The Group's deferred tax asset has
also been recalculated and increased based on the current
assessment of trading performance and utilisation of available tax
losses.
Current assets have decreased from GBP4.8m to GBP4.2m. This
reduction in current assets is due to lower year end cash balances
after using approximately GBP2.2m on the tender offer which
partially offset strong operating cash inflows of GBP2.5m.
Total liabilities have increased from GBP4.6 to GBP4.9m driven
by increased deferred revenue in the year. Deferred revenue
increases relate to additional invoiced Ingenta Commercial project
work which will be recognised in 2023.
Cashflow
The Group performed strongly generating a cash inflow from
operations of GBP2.5m compared to GBP2.0m in 2021. The Group
restructuring has improved efficiency and margins which flows
through to cash generation. Additionally, significant historic
leasing commitments are nearing completion which benefited
cashflow, and will have further incremental benefits in 2023.
Outside of normal operational activity, the Group has paid
dividends of GBP0.5m (2021: GBP0.4m) and completed a share
repurchase which amounted to an outflow of GBP2.2m (2021: GBP0.3m).
Closing cash balances were GBP2.4m (2021: GBP3.0m)
Key Performance Indicators
The Board and senior management review a number of KPI's
continually throughout the year, all of which form part of the
monthly management accounts process and include:
-- Revenue versus budget and monthly reforecast
-- Adjusted EBITDA (see note 2 for calculation) versus budget
-- Group cashflow versus budget
-- Sales pipeline growth and conversion analysis
-- Time utilisation statistics
Any deviations or anomalies are investigated by senior
management, and corrective action taken where appropriate.
Full year revenues were below budget because of delays in
delivering new sales. To try and rectify this, the Group have
revisited the sales and marketing plans to strengthen the teams in
certain areas and align skills and activity to the opportunities
existing in the sales pipeline.
Adjusted EBITDA was higher than budget as the Group delayed
staff hiring activity whilst it reappraised its sales and marketing
strategy. These plans were firmed up later in the year but
execution will not be fully complete until later in 2023.
Year-end cash balances were GBP0.5m below budget reflecting the
unplanned tender offer expenditure only being partially offset by
strong operating performance.
The Group monitor sales activity with reference to monthly sales
pipeline reports. These reports detail sales opportunities by
product with metrics around expected project timelines and revenue
recognition estimates so that management can deploy resources
adequately to ensure the best chance of success in the bidding
process. When any items are removed from the pipeline due to either
a successful sale or a lost opportunity, management carry out a
detailed analysis to ensure the reasons are understood and any
actions required are taken.
The business monitors time utilisation at a contract level to
enable accurate pricing decisions to be made ensuring profitable
service delivery. Internal development costs are also reviewed to
ensure the appropriate effort is spent supporting the products and
deliver an effective product roadmap.
Going concern
The core fundamentals of the Group remain strong with cash
reserves at the end of March 2023 of over GBP1.7m and no debt
beyond leasing arrangements. The new business structure is now
firmly in place allowing profitable operations to continue whilst
offering capacity to grow. Management are satisfied that cash is
sufficient for the needs of the business based on the cash flow
forecast. The going concern review covered the period to the end of
June 2024.
Although the threat of Covid has receded, there remains an
element of caution in the wider economy that adds uncertainty to
financial forecasting and modelling. These cautionary factors
include conflict in Ukraine and a pessimistic view of economic
activity in the UK. However, at an operating profit level, the
Group's results so far in 2023 have been better than budget. In
addition, sales pipeline activity is strong and although timing of
new sales wins is inherently uncertain, the Board are confident
targets are achievable. The Group continues to embrace established
flexible working practices which have been successful in mitigating
Covid restrictions without any significant impact to services. The
Group have no direct customer or supplier relationships in Ukraine
or Russia but remain vigilant of any wider impact on the business.
The Group has modelled various downside scenarios and consider it
appropriate to use the going concern basis to compile these
financial statements. Further details on going concern are included
in the accounting policies section of the financial statements.
Outlook
After a period of transition, Ingenta have successfully combined
revenue growth with operational efficiency. We believe this growth
to be sustainable and now spans a broader range of customers in
both traditional and adjacent markets. Combined with a fully
referenceable product set, and investment in our sales and
marketing teams, the Group is increasingly confident that it has
the necessary structure in place to capitalise on a growing
pipeline of sales opportunities.
J R Sheffield
Chief Financial Officer
10 May 2023
Group Statement of Comprehensive Income
For the year ended 31 December 2022
Year ended Year ended
31 Dec 31 Dec
22 21
note GBP'000 GBP'000
====================================================== ===== =========== ===========
Group revenue 10,451 10,145
Cost of sales (5,348) (5,487)
Gross profit 5,103 4,658
Sales and marketing expenses (707) (690)
Administrative expenses (3,176) (3,214)
Profit from operations 2 1,220 754
Finance costs (21) (27)
Profit before income tax 1,199 727
Income tax 3 260 1,074
Profit for the year attributable to equity
holders of the parent 1,459 1,801
Other comprehensive expenses which will be
reclassified subsequently to profit or loss:
Exchange differences on translation of foreign
operations 307 56
Total comprehensive profit for the year attributable
to equity holders of the parent 1,766 1,857
Basic profit per share (pence) 4 9.02 10.93
Dilutive profit per share (pence) 4 8.94 10.50
All activities are classified as continuing
Group Statement of Financial Position
As at 31 December 2022
31 Dec 31 Dec
22 21
=============================== =====
Note GBP'000 GBP'000
=============================== ===== ======== ========
Non-current assets
Goodwill 2,661 2,661
Other intangible assets - -
Property, plant and equipment 302 665
Deferred tax asset 1,384 1,163
4,347 4,489
Current assets
Trade and other receivables 1,910 1,810
Cash and cash equivalents 2,376 3,006
======== ========
4,286 4,816
Total assets 8,633 9,305
======== ========
Equity
Share capital 5 1,512 1,692
Capital redemption reserve 180 -
Merger reserve 11,055 11,055
Reverse acquisition reserve (5,228) (5,228)
Share option reserve 117 88
Translation reserve (298) (605)
Retained earnings (3,564) (2,278)
Total equity 3,774 4,724
Non-current liabilities
Deferred tax liability 37 88
Leases - 192
======== ========
37 280
Current liabilities
Trade and other payables 2,138 1,991
Contract liabilities 2,684 2,310
4,822 4,301
Total liabilities 4,859 4,581
Total equity and liabilities 8,633 9,305
Group Statement of Changes in Equity
For the year ended 31 December 2022
Total
Capital Reverse Share attributable
Share redemption Merger acquisition Translation Retained option to owners
capital reserve reserve reserve reserve earnings reserve of parent
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
=============== ========= ============ ========= ============= ============ ========== ========= =============
Balance at 1
January
2021 1,692 - 11,055 (5,228) (661) (3,353) 61 3,566
Dividends paid - - - - - (410) - (410)
Shares bought
back into
treasury - - - - - (316) - (316)
Share options
granted in
the
year - - - - - - 27 27
--------- ------------ --------- ------------- ------------ ---------- --------- -------------
Transactions
with
owners - - - - - (726) 27 (699)
Profit for the
year - - - - - 1,801 - 1,801
Foreign
exchange
differences
on
translation - - - - 56 - - 56
--------- ------------ --------- ------------- ------------ ---------- --------- -------------
Total
comprehensive
income for
the
year - - - - 56 1,801 - 1,857
Balance at 31
December 2021 1,692 - 11,055 (5,228) (605) (2,278) 88 4,724
=============== ========= ============ ========= ============= ============ ========== ========= =============
Dividends paid - - - - - (523) - (523)
Shares
repurchased
and cancelled (180) 180 - - - (2,222) - (2,222)
Share options
granted in
the
year - - - - - - 29 29
--------- ------------ --------- ------------- ------------ ---------- --------- -------------
Transactions
with
owners (180) 180 - - - (2,745) 29 (2,716)
Profit for the
year - - - - - 1,459 - 1,459
Foreign
exchange
differences
on
translation - - - - 307 - - 307
--------- ------------ --------- ------------- ------------ ---------- --------- -------------
Total
comprehensive
income for
the
year - - - - 307 1,459 - 1,766
Balance at 31
December 2022 1,512 180 11,055 (5,228) (298) (3,564) 117 3,774
=============== ========= ============ ========= ============= ============ ========== ========= =============
Group Statement of Cash Flows
For the year ended 31 December 2022
Year ended Year ended
31 Dec 31 Dec
22 21
Note GBP'000 GBP'000
====================================================== ===== =========== ===========
Profit before taxation 1,199 727
Adjustments for
Depreciation 412 632
Profit on disposal of fixed assets (4) -
Interest expense 21 27
Share based payment charge 29 27
(Increase) / decrease in trade and other receivables (100) 416
Increase in trade and other payables and deferred
income 894 187
Cash inflow from operations 2,451 2,016
Tax paid (8) (13)
=========== ===========
Net cash inflow from operating activities 2,443 2,003
Cash flows from investing activities
Purchase of property, plant and equipment (45) (119)
Net cash used in investing activities (45) (119)
Cash flows from financing activities
Interest paid (21) (21)
Payment of lease liabilities (258) (453)
Dividend paid (523) (410)
Costs of share repurchase 5 (2,222) (316)
Net cash used in financing activities (3,024) (1,200)
Net increase / (decrease) in cash and cash
equivalents (626) 684
Cash and cash equivalents at the beginning
of the year 3,006 2,323
Exchange differences on cash and cash equivalents (4) (1)
=========== ===========
Cash and cash equivalents at the end of the
year 2,376 3,006
1. Basis of preparation
The nancial information of the Group set out above does not
constitute statutory accounts for the purposes of Section 435 of
the Companies Act 2006. The nancial information for the year ended
31 December 2022 has been extracted from the Group's audited
nancial statements which were approved by the Board of directors on
10 May 2023.
The nancial information for the year ended 31 December 2022 has
been extracted from the Group's nancial statements for that period.
The report of the auditor on the 2022 nancial statements was
unquali ed, did not include any references to any matters to which
the auditors drew attention by way of emphasis without qualifying
their report and did not contain a statement under Section 498(2)
or Section 498(3) of the Companies Act 2006.
Whilst the nancial information included in this preliminary
announcement has been prepared in accordance with UK adopted
international accounting standards ("IASs") in conformity with the
requirements of the Companies Act 2006, the International Financial
Reporting Interpretations Committee ("IFRIC"), interpretations
issued by the International Accounting Standards Boards ("IASB")
that are effective or issued and adopted as at the time of
preparing these financial statements, and in accordance with the
provisions of the Companies Act 2006 that are relevant to companies
that report under UK adopted IASs, this announcement does not
itself contain su cient information to comply with those IASs. This
nancial information has been prepared in accordance with the
accounting policies set out in the 2021 Report and Accounts and
updated for new standards adopted in the current year.
Items included in the nancial information of each of the Group's
entities are measured using the currency of the primary economic
environment in which the entity operates (the functional currency).
The consolidated nancial information is presented in UK sterling
(GBP), which is the Group's presentational currency.
The Company is a public limited company incorporated and
domiciled in England & Wales and whose shares are quoted on
AIM, a market operated by the London Stock Exchange.
The principal activity of Ingenta plc and its subsidiaries is
the sale of software and ancillary services.
2. Profit from operations
Profit from operations has been arrived at after charging:
Year ended Year ended
31 Dec 31 Dec
22 21
GBP'000 GBP'000
=============================================== =========== ===========
Research and development costs 1,091 1,009
Net foreign exchange (gain) / loss 328 61
Depreciation of property, plant and equipment
- owned assets 129 179
- leasehold property 21 133
- assets under leases 262 262
Amortisation - 58
Auditor's remuneration
- audit fees 129 74
- taxation services 12 12
Exceptional non-recurring costs - 5
An analysis reconciling the profit from operations to adjusted
EBITDA is provided below.
Year ended Year ended
31 Dec 31 Dec
22 21
GBP'000 GBP'000
===================================================== =========== ===========
Profit from operations 1,220 754
Add back:
Depreciation and amortisation 412 632
Gain on disposal of fixed assets (4) -
Exceptional non-recurring costs - 5
Foreign exchange loss / (gain) 328 61
EBITDA before impairment, amortisation, gain
/ loss on disposal of fixed assets, foreign
exchange gain / loss and exceptional non-recurring
costs 1,956 1,452
------------------------------------------------------ ----------- -----------
Exceptional non-recurring costs include restructuring costs,
premises exit costs, non-recurring professional fees and debt write
offs.
3. Tax
Year ended Year ended
31 Dec 31 Dec
22 21
GBP'000 GBP'000
=========================================== =========== ===========
Analysis of (charge) / credit in the year
Current tax:
Current year State tax - US (9) (10)
Adjustment to prior year charge - UK (3) (3)
Deferred tax credit 272 1,087
=========== ===========
Taxation 260 1,074
============================================ =========== ===========
The Group has unutilised tax losses at 31 December 2022 in the
UK and the USA of GBP15.4m (2021: GBP16.3m) and $8.2m (2021:
$11.2m) respectively. These losses have been agreed with the tax
authorities in the UK and USA. The Board intends to make use of all
losses wherever possible.
Some of the US tax losses are restricted to $491K per annum as a
result of change of control legislation. Losses carried forward
from the change of control in April 2008 are restricted and must be
used within 20 years. The Board believes the Group will be able to
make use of $6.7m (2021: $7.4m) of the total unutilised losses at
31 December 2022.
No deferred tax has been recognised in accordance with advice
from US tax accountants on the basis that the US losses are
restricted and there is uncertainty on the value of losses which
will be able to be used.
From 1 April 2023, the corporation tax rate applicable to
companies with taxable profits above GBP250,000 will be 25 per
cent. Companies with profits below GBP50,000 will, however,
continue to pay tax at the current rate of 19 per cent. Those with
taxable profits between GBP50,000 and GBP250,000 will benefit from
marginal relief, similar to that which applied before the previous
incarnation of the small companies' rate of corporation tax was
abolished with effect from 1 April 2015.
The differences are explained below:
Year ended Year ended
31 Dec 31 Dec
Reconciliation of tax expense 22 21
GBP'000 GBP'000
================================================== =========== ===========
Profit on ordinary activities before tax 1,199 727
=========== ===========
Tax at the UK corporation tax rate of 19%
(2021: 19%) 228 138
Income / expenses not allowable for tax purposes 44 (16)
Unrelieved losses carried forward 58 354
Utilisation of losses (386) (529)
Difference in timing of allowances 59 56
Deferred tax movement (272) (1,087)
Adjustment to tax charge in respect of prior
years 9 10
Total taxation (260) (1,074)
=================================================== =========== ===========
United Kingdom Corporation tax is calculated at 19% (2021: 19%)
of the estimated assessable profit for the year.
Taxation for other jurisdictions is calculated at the rates
prevailing in the respective jurisdictions.
4. Earnings per share
Basic earnings per share is calculated by dividing the earnings
attributable to ordinary shareholders by the weighted average
number of ordinary shares outstanding during the year.
For diluted earnings per share, the weighted average number of
ordinary shares in issue is adjusted to assume conversion of all
dilutive ordinary share options. Management estimate 145,535
ordinary shares will be issued (2021: 669,578) in respect of share
options. In the current year, this calculation would have an
antidilutive effect on earnings per share so has been ignored.
Year ended Year ended
31 Dec 31 Dec
2022 2021
GBP'000 GBP'000
====================================================== =========== ===========
Attributable profit 1,459 1,801
Weighted average number of ordinary shares
used in basic earnings per share ('000) 16,169 16,481
Shares deemed to be issued in respect of share-based
payments 146 670
----------- -----------
Weighted average number of ordinary shares
used in dilutive earnings per share ('000) 16,315 17,151
Basic profit per share arising from both total
and continuing operations 9.02p 10.93p
Dilutive profit per share arising from both
total and continuing operations 8.94p 10.50p
======================================================= =========== ===========
Dividends
On 30 August 2022 the Company paid a final dividend of 2 pence
per share for the year ended 31 December 2021. On 4 November 2022
an interim dividend of 1.2 pence per share was paid in respect of
the year ended 31 December 2022.
After the year end, the Directors declared their intention to
pay a final dividend of 2.25p for the year ended 31 December 2022,
subject to approval at the forthcoming Annual General Meeting.
5. Share capital
Year ended Year ended
31 Dec 31 Dec
2022 2021
GBP'000 GBP'000
================================================= =========== ===========
Issued and fully paid:
15,123,125 (2021: 16,919,609, 2020: 16,919,609)
ordinary shares of 10p each 1,512 1,692
-------------------------------------------------- ----------- -----------
There is one class of ordinary shares and holders are entitled
to receive dividends as declared from time to time and are entitled
to one vote per share at shareholder meetings.
Share transactions
During the year, the Company purchased 1,796,484 shares at a
tender price of 115 pence. The shares were subsequently cancelled
(2021: the Company purchased 440,826 shares for GBP315,771 which
were retained as treasury shares). There were no shares issued
during the year (2021: None).
6. Publication of non-statutory accounts
The financial information set out in this announcement does not
constitute statutory accounts as defined in the Companies Act
2006.
The Group Statement of Comprehensive Income, Group Statement of
Financial Position, Group Statement of Changes in Equity, Group
Statement of Cash Flows and associated notes have been extracted
from the Group's 2022 statutory financial statements upon which the
auditor's opinion is unqualified and which do not include any
statement under section 498 of the Companies Act 2006.
Those financial statements will be delivered to the Registrar of
Companies following the release of this announcement.
This announcement and the annual report and accounts, including
the Notice of Annual General Meeting, are available on the
Company's website www.ingenta.com. A copy of the report and
accounts will be sent to shareholders who have elected to receive a
printed copy with details of the annual general meeting in due
course.
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END
FR FFFFIEAIILIV
(END) Dow Jones Newswires
May 11, 2023 02:00 ET (06:00 GMT)
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