TIDMCTEA 
 
   CATENAE INNOVATION PLC 
 
   ("Catenae" or the "Company") 
 
   Final Results 
 
   Catenae (AIM:CTEA), the AIM quoted provider of digital media and 
technology announces its final results for the year ended 30 September 
2018. 
 
   Key points 
 
 
   -- Creation of Blockchain Intellectual Property within Trust in Media for 
      copyright protection 
 
   -- Launch of Sequestrum -- a digital repository system utilising blockchain 
 
   -- Aston Villa successfully completed proof of concept exercise 
 
   -- Southend United Football Club sign agreement post year-end 
 
   -- Costs greatly reduced and five-fold revenue increase 
 
 
   The independent auditor's report for the year ended 30 September 2018 
contains a material uncertainty paragraph in respect of going concern. 
An extract taken from the text of the auditor's opinion is set out below 
in part 1 of the notes to this announcement. 
 
   Anthony Sanders, Chief Executive and Chairman, commented: 
 
   "The past 12 months have seen a transformation within the business as 
the revised strategic plan, which commenced in September 2017, has been 
implemented. The new management structure is in place and the 
streamlining of the business units has been completed resulting in a 
drastic reduction in the cost base of the business. The management are 
also pleased to see a five-fold increase in revenue year on year, the 
vast majority of this as new products were rolled out in the second half 
of the year. The Company is now firmly focussed on translating this 
interest in the product set to sustainable revenues." 
 
   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 Anthony Sanders (Chief 
Executive Officer). 
 
   For further information: 
 
 
 
 
Catenae Innovation Plc                             Tel: 020 7929 7826 
 Tony Sanders 
 
  Cairn Financial Advisers LLP, Nominated Adviser    Tel: 020 7213 0880 
  Liam Murray / Jo Turner 
 
  Alexander David Securities Limited, Broker         Tel: 020 7448 9820 
  David Scott / James Dewhurst 
 
 
 
   CHAIRMAN'S STATEMENT 
 
   Business Progression 
 
   The past 12 months have seen a transformation within the business as the 
revised strategic plan, which commenced in September 2017, has been 
implemented. This was formalised in March 2018 with the change of name 
from Milestone Group Plc to Catenae Innovation Plc. The new management 
structure is in place and the streamlining of the business units has 
been completed with the inherent reduction in head count. This has 
resulted in a drastic reduction in the cost base of the business; where 
there were extra costs for these changes, these have been included 
within the 2018 accounts. 
 
   As the new product areas discussed below have come on stream, one of the 
key business metrics for the management team is the value of the 
associated invoices. The management are pleased to see a five-fold 
increase in revenue year on year (2018: GBP157,218, 2017: GBP24,040 on a 
like for like basis), the vast majority of this as new products were 
rolled out in the second half of the year. 
 
   In March 2018, the Company created a joint venture company, Trust in 
Media, through the disposal of some shares in Oil Productions Ltd T/A 
Relative and a rebranding of that entity. Catenae retain 50.5% of the 
ownership. Trust in Media has since focused on offering technical 
innovation within the media sector. 
 
   Since its formation, Trust in Media has created intellectual property in 
respect of blockchain technology for use by its own clients as well as 
licenced to Catenae, where it is embedded into Catenae's products. Trust 
in Media has carried out a trial of the Digital Asset Registration 
tracking technology that it developed. This has now been accepted to sit 
within the operations of a service provider in the image-licensing 
sector and is subject to commercial discussion post period. In addition, 
Catenae has launched two new products, Sequestrum, the Company's first 
blockchain application which is a universal digital asset repository and 
tracking system utilising the Trust in Media intellectual property and 
OnSite, a Management and Inspection application developed for the 
construction sector. The revised products also introduce a revised 
revenue model combining multi-year annuity contracts with per event 
transactional revenues. Both Sequestrum and OnSite have been trialled in 
successful pilot projects with potential clients; these are now subject 
to commercial negotiation. 
 
   Sequestrum forms the basis of the Company's technical strategy. It has 
been embedded within the legacy products, OnSide and OnGuard, and is 
integral to OnSite. This development augments their compliance 
capability of the products by offering the ability to store immutable 
reports and proof of work functions to their legacy GDPR credentials. 
 
   Post period end the Company signed the first commercial agreement for 
its blockchain technology in the form of its Sequestrum-enabled version 
of OnGuard. This achieves revenue through a combined annuity licence and 
transactional fee structure. 
 
   This period has seen the each of our existing clients renewing or 
extending their annuity contracts, new customers signing up for pilot 
projects and the development of products. The Board has now implemented 
the new strategy for the business, ensuring that costs are greatly 
reduced and that all product lines have a commercial focus. 
 
   In the meantime, with the advent of the new GDPR rules Catenae's Mobile 
Business Solutions products are going from strength to strength. The 
OnGuard product, targeted at companies with remote workforce, has seen 
its existing contracts both renew and expand into providing additional 
services. The OnSide product, which focuses on the sports coaching 
industry, has also seen its existing contract being renewed with 
Charlton Athletic, but has had increased interest from a number of 
football clubs and has recently signed Southend United. Aston Villa also 
completed a successful pilot within its community foundation. The 
Company are also in discussion with other football clubs and have 
recently commenced discussions within Premiership Rugby. 
 
   Working capital, fund raisings and other matters 
 
   During the year, the Company issued 299,833,335 new ordinary shares for 
a total consideration of GBP509,500, of which GBP356,500 was received in 
cash during the year and GBP153,000 was in exchange for goods and 
services. Since the year-end, the Company has issued 500,000,000 new 
ordinary shares for a total consideration of GBP600,000 of which 
GBP25,000 cash was received in the current year (held within shares to 
be issued reserve at the year-end), GBP167,245 was in exchange for goods 
and services (agreed during the year and also held within shares to be 
issued), GBP395,000 cash received post year-end and GBP12,755 was in 
exchange for goods and services post year-end. 
 
   The Company continues to carefully manage its working capital position 
and will need to raise further monies through subscriptions for new 
shares in the short term while the efforts from last year bring about 
the creation of new revenue lines. The Company remains firmly focused on 
generating revenue through developing its activities. Protecting the 
interest of the Company's shareholders is a priority and the Board's 
strategy is to seek to raise funds on a basis that is fair to all. 
 
   Results for the year 
 
   The Company had a net loss for the year of GBP1,106,788 (2017: 
GBP2,262,319), showing real improvement in the management of costs, and 
revenues of GBP157,218 (2017: GBP28,795), of which GBPnil (2017: 
GBP4,755) relates to discontinued operations. The Company has a 
statement of financial position at the year-end showing net liabilities 
of GBP891,929 (2017: GBP552,280). 
 
   These results are presented under European Union Adopted International 
Financial Reporting Standards ("EU Adopted IFRS"). 
 
   Conclusion 
 
   The Board saw the restructuring of the business as critical to 
delivering the new business strategy and became the primary focus for 
much of the year. The period saw the commencement of the recovery for 
the business with the introduction of the new product set and the Board 
are pleased to see that the revised products areas are attracting both 
interest and revenues. The Company is now firmly focussed on translating 
this interest in the product set to sustainable revenues. 
 
   Anthony Sanders 
 
   Chief Executive Officer and Chairman 
 
   28 December 2018 
 
   Statement of comprehensive income for the year ended 30 September 2018 
 
 
 
 
                                                    2018         2017 
                                                     GBP                GBP 
 
Revenue                                             157,218       24,040 
 
Cost of sales                                             -       (1,964) 
                                                 ----------   ---------- 
 
Gross profit                                        157,218       22,076 
 
Realised gain on disposal                                 -            1 
Administrative expenses                          (1,282,027)  (2,266,777) 
 
                                                 (1,282,027)  (2,266,776) 
                                                 ----------   ---------- 
 
Loss from operations                             (1,124,809)  (2,244,700) 
 
Net finance expense                                  (2,460)      (1,486) 
 
Loss before taxation                             (1,127,269)  (2,246,186) 
 
Taxation credit                                      20,481            - 
                                                 ----------   ---------- 
 
Loss from continuing operations                  (1,106,788)  (2,246,186) 
 
(Loss) from discontinued operations net of tax            -      (16,133) 
 
Total comprehensive loss for the year            (1,106,788)  (2,262,319) 
                                                 ==========   ========== 
 
Basic and diluted loss per share (pence)              (0.06)       (0.20) 
 
 
 
 
   Statement of financial position at 30 September 2018 
Company No: 04689130 
 
 
 
 
                                 2018          2017 
                                  GBP                  GBP 
 
Non-current assets 
Intangible assets                       1             1 
Investments                            10             - 
                                       11             1 
Current assets 
Trade and other receivables        48,864        77,137 
Cash and other equivalents         49,105       749,818 
                              -----------   ----------- 
                                   97,969       826,955 
 
Current liabilities 
Trade and other payables         (674,247)   (1,086,209) 
Interest bearing loans           (315,662)     (293,027) 
                                 (989,909)   (1,379,236) 
 
Net (liabilities)                (891,929)     (552,280) 
                              ===========   =========== 
 
Capital and reserves 
Share capital                   2,078,601     1,778,768 
Share premium account          16,999,644    17,954,376 
Shares to be issued               187,245             - 
Share reserve                     (83,333)   (1,250,000) 
Merger reserve                 11,119,585    11,119,585 
Capital redemption reserve      2,732,904     2,732,904 
Retained losses               (33,926,575)  (32,887,913) 
                              -----------   ----------- 
Shareholders' funds              (891,929)     (552,280) 
                              -----------   ----------- 
 
 
 
   Statement of cash flows for the year ended 30 September 2018 
 
 
 
 
Cash flow from operating activities              2018             2017 
                                                   GBP                     GBP 
 
Loss for the year                             (1,106,788)       (2,262,319) 
Adjustments for: 
Amortisation of intangible assets                      -                 - 
Net bank and other interest charges                2,460             1,486 
Services settled by the issue of shares          317,513            45,326 
Issue of share options and warrants charge        68,126            68,581 
                                              ----------      ------------ 
 Net cash outflow before changes in working 
 capital                                        (718,689   )    (2,146,926   ) 
                                              ----------      ------------ 
 
Decrease in trade and other receivables           28,272            74,362 
(Decrease) / Increase in trade and other 
 payables                                       (411,961)           25,810 
                                              ----------      ------------ 
 
Cash outflow from operations                  (1,102,378)       (2,046,754) 
                                              ----------      ------------ 
 
Interest received                                     15                14 
Interest paid                                     (2,475)                - 
                                              ----------      ------------ 
 
Net cash flows from operating activities      (1,104,838)       (2,046,740) 
                                              ----------      ------------ 
 
Investing activities 
Investment in joint venture                          (10)                - 
                                              ----------      ------------ 
 
  Net cash flows from investing activities           (10   )             - 
                                              ----------      ------------ 
 
Financing activities 
Issue of ordinary share capital                  381,500         2,516,220 
Repayment of loan                               (375,090)         (155,000) 
New loans raised                                 397,725           312,500 
 
Net cash flows from financing activities         404,135         2,673,720 
                                              ----------      ------------ 
 
 
Net (decrease) / increase in cash               (700,713)          626,980 
Cash and cash equivalents at beginning of 
 year                                            749,818           122,838 
                                              ----------      ------------ 
 
Cash and cash equivalents at end of year          49,105           749,818 
                                              ----------      ------------ 
 
 
 
 
   Statement of changes in equity for the year ended 30 September 2018 
 
 
 
 
                Share                       Shares to       Other 
               Capital     Share Premium    be issued     Reserves     Retained Earnings  Total Equity 
                 GBP            GBP            GBP           GBP              GBP                     GBP 
 
Balance at 
30 Sept 
2018            783,998     15,073,350        63,081      13,852,489     (30,694,175   )    (921,257    ) 
             -----------  ------------      ---------   ------------   -------------      ----------- 
 
Loss for 
 the year              -             -              -              -      (2,262,319)      (2,262,319) 
Share 
 capital                                             ) 
 issued          994,770     2,881,026        (63,081     (1,250,000)              -        2,562,715 
Share 
options 
charge                 -             -              -              -          68,581           68,581 
 
Balance at 
30 Sept 
2017           1,778,768    17,954,376              -     12,602,489     (32,887,913   )     (552,280   ) 
             -----------  ------------      ---------   ------------   -------------      ----------- 
 
Loss for 
 the year              -             -              -              -      (1,106,788)      (1,106,788) 
Conclusion 
 of 
 defaulting 
 shares 
 issue                 -    (1,166,667   )          -      1,166,667               -                - 
Share issue 
 agreed in 
 advance               -             -        187,245              -               -          187,245 
Share 
 capital         299,833       211,935              -              -               -          511,768 
 issued 
Share                  -                                           -          68,126 
 options                             -              -                                          68,126 
 charge 
 
Balance at 
 30 Sept       2,078,601    16,999,644        187,245     13,769,156     (33,926,575   )     (891,929   ) 
 2018 
             -----------  ------------      ---------   ------------   -------------      ----------- 
 
 
 
   Notes to the financial information 
 
   1. Basis of preparation 
 
   Catenae Innovation Plc is a company registered and resident in England 
and Wales. 
 
   The financial information set out in this announcement does not 
constitute the Company's statutory accounts, as defined in Section 435 
of the Companies Act 2006, for the years ended 30 September 2018 or 30 
September 2017, but is derived from the 2018 Annual Report. Statutory 
accounts for 2017 have been delivered to the Registrar of Companies and 
those of 2018 will be delivered in due course. 
 
   The statement of comprehensive income, statement of financial position, 
statement of cash flows, statement of changes in equity (above) and 
associated notes are extracts from the financial statements and do not 
constitute the Company's statutory accounts. 
 
   Statutory accounts for the year to 30 September 2017 and 30 September 
2018 have been reported on by the Independent Auditors. 
 
   The financial statements have been prepared and approved by the 
Directors in accordance with International Financial Reporting Standards 
as adopted by the EU ("EU Adopted IFRSs"). 
 
   The Independent Auditor's Report on the Annual Report and Financial 
Statements for 2017 and for 2018 was unqualified, but did draw attention 
to matters by way of emphasis relating to the basis of preparation, 
which is reproduced below and was substantively similar for both years. 
 
   In forming the Auditor's opinion on the financial statements, which is 
not modified, the Auditor's have considered the adequacy of the 
disclosure made in note 1 to the financial statements concerning the 
Company's ability to continue as a going concern. "The going concern 
status of the company is dependent upon the management of the timing of 
settlement of its liabilities and the raising of further funds in the 
immediate to short term and thereafter on the forecast profitability of 
key projects which have recently commenced and for which the degree of 
success cannot yet be reliably demonstrated. 
 
   Forecasts prepared by management indicate that if they are unable to 
manage the company's liabilities as planned or the external fundraising 
does not occur in the immediate term and, subsequently, the future 
projects do not prove as profitable as forecast the company would have 
an immediate requirement to seek alternative sources of funding. As 
stated in note 1, these conditions indicate that a material uncertainty 
exists which casts significant doubt on the company's ability to 
continue as a going concern." 
 
   The basis of preparation is reproduced below. 
 
   Going concern 
 
   The Company's business activities, together with the factors likely to 
affect its future development, performance and position are set out in 
the Chairman's statement and below. The financial position of the 
Company, its cash flows, liquidity position and borrowing facilities are 
described in the financial statements. In addition, note 16 to the 
financial statements includes the Company's objectives, policies and 
processes for managing its capital; its financial risk management 
objectives; details of its financial instruments; and exposures to 
credit risk and liquidity risk. 
 
   The net liability position as at 30 September 2018, being the Company's 
financial year-end, was GBP891,929 (2017: GBP552,280). Subsequent to the 
reporting date, the Board has been able to agree funding in the form of 
further share issues raising GBP524,945 in cash and clearing GBP75,055 
worth of creditors through share issue. The funding received to date 
will go part way to cover year-end liabilities, and the Company will be 
dependent upon future funding and revenues to meet the remaining 
obligations, as discussed below. 
 
   The Company continues to be reliant upon its continuing ability to 
manage the timing of settlement both of its current liabilities and 
future liabilities as they arise. There is also a need for successful 
on-going equity fundraises and / or loans in the immediate to short term 
thereafter, while sales plans and projections come into effect, 
especially in relation to revenues generated from existing and new 
products. The Board has prepared forecasts to reflect the revenues 
expected to be generated by the Company. The Company is fully focused on 
ensuring that sales plans are followed to ensure that the business 
becomes self-sustaining in the near future. 
 
   The Directors have concluded that the need to generate future funds from 
further fundraising and from trading activities to satisfy the 
settlement of its on-going and future liabilities represents a material 
uncertainty, which may cast significant doubt upon the Company's ability 
to continue as a going concern. Nevertheless, after making enquiries and 
considering this uncertainty and the measures that can be taken to 
mitigate the uncertainty, the Directors have a reasonable expectation 
that the Company will have adequate resources to continue in existence 
for the foreseeable future. For these reasons they continue to adopt the 
going concern basis in preparing the annual report and accounts. The 
financial statements do not include any adjustments that would result if 
the Company was unable to continue as a going concern. 
 
   2. Loss per share 
 
   The calculation of the basic loss per share is based on the loss 
attributable to ordinary shareholders divided by the weighted average 
number of shares in issue during the year. The calculation of diluted 
loss per share is based on the basic loss per share, adjusted to allow 
for the issue of shares and the post tax effect of dividends and 
interest, on the assumed conversion of all other dilutive options and 
other potential ordinary shares. 
 
 
 
   There were 162,191,116 share options and 432,764,797 share warrants 
outstanding at the year-end (2017: 163,213,116 and 248,431,460). However, 
the figures for 2018 and 2017 have not been adjusted to reflect 
conversion of these share options, as the effects would be 
anti-dilutive. 
 
 
 
 
                                           2018                                2017 
                              Weighted                            Weighted 
                                            Per                                     Per 
                               average     share                   average        share 
                  Loss        number of    amount     Loss        number of      amount 
                   GBP         shares      Pence       GBP         shares         Pence 
Basic and 
 diluted loss 
 per share 
 attributable 
 to 
 shareholders  (1,106,788)  1,905,297,999  (0.06)  (2,262,319)  1,115,347,198  (0.20) 
 
 
   3. Posting of Accounts 
 
   The Reports and Accounts of Catenae Innovation Plc, including the Notice 
of Annual General Meeting will be posted to shareholders shortly. 
 
   A further announcement will be made by the Company at such time. 
 
 
 
 
 
 

(END) Dow Jones Newswires

December 31, 2018 02:00 ET (07:00 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
Grafico Azioni Catenae Innovation (LSE:CTEA)
Storico
Da Feb 2024 a Mar 2024 Clicca qui per i Grafici di Catenae Innovation
Grafico Azioni Catenae Innovation (LSE:CTEA)
Storico
Da Mar 2023 a Mar 2024 Clicca qui per i Grafici di Catenae Innovation