TIDMCTEA

RNS Number : 4423R

Catenae Innovation PLC

30 June 2020

30 June 2020

Catenae Innovation PLC

("Catenae", the "Company" or the "Group")

Half-yearly report to 31 March 2020

Catenae Innovation PLC (AIM: CTEA), the AIM quoted provider of digital media and technology, is pleased to announce its half-yearly report for the six months ended 31 March 2020.

Financial overview

-- The results for the half year are set out in full below and show a loss of GBP364,013 (2018: GBP503,233) with revenues of GBP19,892 (2018: GBP68,857).

-- Shareholders approved a consolidation of share capital which enabled a fund raise of GBP153,000 and conversion of GBP404,250 liabilities to shares resulting in an improved balance sheet with net liability position of GBP533,840 (2018: GBP399,980) compared to the year-end position of GBP727,077.

Operational overview

-- Renewal of contract with Southend United Community and Educational Trust for "OnSide", Catenae's centralised management tool specifically developed for sports organisations.

Post period end

-- Development of the Cov-ID app, a joint initiative by a consortium of companies led by Z/Yen Group Limited to build a COVID-19 status verification passport.

-- Partnership agreement with Newcastle Premier Health Limited, an occupational health and wellness business based in the North East of England, to pilot the Cov-ID app

   --       Kevin Everett stepped down as Interim Non-executive Chairman 

-- Appointment of Brian Thompson and John Farthing to the Board as Non-executive Chairman and Chief Financial Officer respectively

   --      Appointment of Brandon Hill Capital Limited as sole corporate broker 
   --      As at 26 June 2020 the Company had cash balance of just over GBP1.0m 

Guy Meyer, Interim Chief Executive Officer of Catenae, said: "Significant progress has been made during the period under review towards implementing the Group's revised strategy following the corporate restructuring that took place in 2019, and we have seen this momentum continue to date.

"We are delighted that the Cov-ID app that Catenae has developed as its commercial contribution to the consortium led by Z/Yen Group Limited completed the recent pilot trail with our clinical partner, Newcastle Premier Health Limited, as part of their Access Control Programme. The app should shortly be ready to be marketed for the benefit of businesses and organisations as Covid-19 restrictions begin to ease.

"Our recent fundraises have provided us with the funds required to continue to explore further opportunities. We look forward to keeping the market updated with our progress."

Chief Executive's Statement

Business and performance review

Following the successful corporate restructuring and business stabilisation process carried out by the Board in 2019, Catenae was able to focus its efforts on delivering on its new strategy in the six months to 31 March 2020, by innovating its products and exploring new opportunities for growth. This positive momentum has continued post period end, with two new Board appointments and a number of projects underway.

Catenae's principal trading activity is providing services to clients operating in the Facilities Management sector along with customers, partnered with football and rugby clubs, who offer local engagement services on behalf of local authorities. All the Company's products use Distributed Ledger Technology which provides clients with immutable audit trails providing evidence that contracted services are fulfilled. The Company's service mitigates risk as operative activities are geo-tagged and date and time stamped in an immutable form.

As announced on 19 December 2019, the Company renewed its contract with Southend United Community and Educational Trust for "OnSide", Catenae's centralised management tool specifically developed for sports organisations. The solution deals with all the key elements of community coaching from scheduling of staff and timesheet processing through to attendee management and reporting to internal and external stakeholders, all in a GDPR compliant platform.

COVID-19

Post period end, the Company has been exploring a number of opportunities across a range of sectors to leverage its technical solutions. Catenae joined a consortium led by Z/Yen Group Limited ("Z/Yen") with the objective of building a GDPR-compliant identity documentation exchange system, "Cov-ID", to record and share an individual's Covid-19 test status. Considerable progress has been made in the development of the app, which was recently trialled by the Group's occupational health and wellness partner in the North East of England, Newcastle Premier Health Limited, in its proof of concept pilot. Catenae expects the app to be ready to be rolled out commercially over the coming weeks as activity begins to return to a semblance of normality.

Notwithstanding the current market developments in relation to the COVID-19 pandemic, the Company has confidence in its business continuity arrangements. At the end of January 2020, the Company ceased to rent offices, with all employees working remotely. Currently, where needed, all business meetings are held using video conferencing platforms. The Company sees that for the foreseeable future, this will now be standard operational practice. Catenae's technical solutions continue to be used effectively with customers and partners, an approach which contributes to the Company's resilience in the current circumstances.

Board and management

Catenae welcomed Brian Thompson and John Farthing to the Board as Non-executive Chairman and Chief Financial Officer, respectively, on 24 April 2020. Their wealth of experience, expertise and business network will add considerable benefit to the Company as we execute our strategy going forward.

Kevin Everett, Interim Non-executive Chairman since 17 July 2019 and Non-executive Director since 16 May 2013, stepped down from his role on 24 April 2020 to pursue other business interests. On behalf of the Board, I would like to thank Kevin for his hard work and support during an important period.

Outlook

Catenae has entered H2 2020 in a stable position and with a streamlined and resilient business model to capitalise on the opportunities that are presenting themselves. The COVID-19 pandemic presents us all with an unprecedented challenge, however the Group is confident in its ability to continue to provide its customers and partners with its technical solutions in an efficient manner.

The Company has a pipeline of opportunities ahead to expand its network of clients and to provide its technical solutions to a wider audience, and the Board looks forward to updating the market on its progress in due course.

Guy Meyer

Interim Chief Executive Officer

STATEMENT OF COMPREHENSIVE INCOME

 
                                     Unaudited     Unaudited         Audited 
                                    six months    six months            year 
                                         ended         ended           ended 
                                      31 March      31 March         30 Sept 
                                          2020          2019            2019 
 
                                           GBP           GBP             GBP 
 
   Revenue                              19,892        68,857         102,549 
 
   Cost of sales                             -             -               - 
                                  ------------  ------------  -------------- 
 
   Gross profit                         19,892        68,857         102,549 
 
   Administrative expenses           (360,615)     (572,134)     (1,072,233) 
 
                                     (340,723)     (503,277)       (969,684) 
                                  ------------  ------------  -------------- 
 
   Loss from operations              (340,723)     (503,277)       (969,684) 
 
   Net Finance income/(expense)       (23,290)            44         (1,412) 
 
 
   Loss before taxation              (364,013)     (503,233)       (971,096) 
 
   Taxation credit                           -             -         145,866 
                                  ------------  ------------  -------------- 
 
   Total comprehensive loss 
   for the year                      (364,013)     (503,233)       (825,230) 
                                  ------------  ------------  -------------- 
 
 
 
 

STATEMENT OF FINANCIAL POSITION

 
                                    Unaudited      Unaudited        Audited 
                                   six months     six months           year 
                                        ended          ended          ended 
                                     31 March       31 March        30 Sept 
                                         2020           2019           2019 
 
                                          GBP            GBP            GBP 
 Non-current assets 
 Intangible assets                          1              1              1 
                                            1              1              1 
 
   Current assets 
 Trade and other receivables           15,161        101,394         22,948 
 Cash and cash equivalents                910        319,146         29,508 
                                -------------  -------------  ------------- 
                                       16.071        420,540         52,456 
 Current liabilities 
 Trade and other payables           (549,912)      (651,530)      (555,629) 
 Interest-bearing loans                     -      (169,001)      (223,905) 
                                -------------  -------------  ------------- 
                                    (549,912)      (820,531)      (779,534) 
 
 Net Liabilities                    (533,840)      (399,980)      (727,077) 
                                -------------  -------------  ------------- 
 
 
   Capital and reserves 
   attributable to equity 
   holders of the company 
 
   Share capital                    3,373,601      3,173,601      3,223,601 
 Share premium account             17,439,221     17,068,371     17,031,971 
 Shares to be issued                        -        18,7000              - 
 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                 (35,115,818)   (34,429,808)   (34,751,805) 
                                -------------  -------------  ------------- 
 
   Total Equity                     (533,840)      (399,980)      (727,077) 
                                -------------  -------------  ------------- 
 

STATEMENT OF CASH FLOWS

 
                                    Unaudited     Unaudited         Audited 
                                   six months    six months            year 
                                        ended         ended           ended 
                                     31 March      31 March    30 Sept 2019 
                                         2020          2019 
                                                                        GBP 
                                          GBP           GBP 
 
   Loss for the period              (364,013)     (503,233)       (825,230) 
 Adjustments for : 
 Net bank and other interest 
  (income) / charges                   23,290          (44)           1,412 
 Issue of share options                     -             -               - 
  / warrant charge 
 Services settled by the 
  issue of shares                           -        63,782         120,055 
 
   Net (loss) before changes 
   in working capital               (340,723)     (439,495)       (703,763) 
 (Increase) / decrease in 
  trade and other receivables           7,787      (52,530)         (6,000) 
 (Decrease) / increase in 
  trade and other 
  payables                            154,628      (22,720)       (182,976) 
                                 ------------  ------------  -------------- 
 
   Cash from operations             (178,308)     (514,745)       (892,739) 
 
   Interest received                       10            44              88 
 Interest paid                       (23,300)             -         (1,500) 
 Net cash flows from operating 
  activities                        (201,598)     (514,701)       (894,151) 
                                 ------------  ------------  -------------- 
 
   Investing activities 
 Investment in joint venture                -             -               - 
                                 ------------  ------------  -------------- 
 Net cash flows from investing 
  activities                                -             -               - 
                                 ------------  ------------  -------------- 
 
   Financing Activities 
 Issue of ordinary share 
  capital                             153,000       931,403         967,810 
 Repayment of loans                         -     (210,842)       (245,937) 
 New loans raised                      20,000        64,181         152,681 
                                 ------------  ------------  -------------- 
 Net cash flows from financing 
  activities                          173,000       784,742         874,554 
                                 ------------  ------------  -------------- 
 
 
   Net increase / (decrease) 
   in cash                           (28,598)       270,041        (19,597) 
 Cash and cash equivalents 
  at beginning of period               29,508        49,105          49,105 
 Cash and cash equivalents 
  at end of period                        910       319,146          29,508 
                                 ------------  ------------  -------------- 
 

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. The person who arranged for release of this announcement on behalf of the Company was Guy Meyer, Interim Chief Executive Officer of the Company.

- Ends -

For further information please contact:

 
                                                         +44 (0)191 580 
 Catenae Innovation PLC                                            8545 
 Guy Meyer, Interim Chief Executive Officer 
 
 Cairn Financial Advisers LLP (Nominated Adviser)    +44(0)20 7213 0880 
 Liam Murray / Jo Turner 
 
                                                         +44 (0)20 3463 
 Brandon Hill Capital Limited, Broker                              5000 
 Andy Gutmann                                         +44 (0)78796 8313 
 
                                                         +44 (0)20 3004 
 Yellow Jersey PR (PR & IP)                                        9512 
 Sarah Hollins / Annabel Atkins 
 

Forward-Looking Statements

Certain statements made in this announcement are forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Company's current expectations, estimates, and projections about its industry; its beliefs; and assumptions. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the Company's control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. The Company cautions security holders and prospective security holders not to place undue reliance on these forward-looking statements, which reflect the view of the Company only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. The Company will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances, or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.

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.

www.catenaeinnovation.com

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END

IR FLFEDRVIAFII

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June 30, 2020 02:01 ET (06:01 GMT)

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