Final Results for the year ended
The Board of
Although the past year has been challenging with continuing uncertainty and changes within the
- continued growth of 5% in turnover;
- a profit of £224,122
- invested £704,336 in R&D.
Our new products are receiving extremely positive feedback. For example, our Best Triage solution launched earlier this year has been extremely successful with 42% of referrals being redirected resulting in time and cost savings. We also now have a full time tendering team and have procured three new
Three new products are being launched in an exciting pilot to manage hypertension. These products, MyVytalCare, MedXPert and Innovation, automate patients at home, taking blood pressure readings, receiving these electronically at the practice, analysing the readings and communicating with the patient via our app. Finally, our system automatically makes treatment recommendations to both doctor and patient. This is the future of healthcare and the Company is well positioned to capitalise on this opportunity as a result of continued re-investment in research and development.
We are committed to improving our communication to our loyal shareholders ensuring that you are well informed of our progress and achievements".
The Directors accept responsibility for this announcement.
For further information please contact:
| || 01252 719800|
City & Merchant
| 0207 101 7676|
Level 17, Dashwood House
Note to Editors:
The following information has been extracted from the Company's audited accounts for the year to 30th April 2017.The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the
The year 2016-2017 has been a challenging year with continuing uncertainty and changes within the
Nevertheless, we did manage to achieve continued growth of 5% in turnover and a profit of £224,122 including investment of £704,336 on R&D. Our tendering team, a result of lessons learned during GPSoC, are aggressively monitoring tenders and as a result we have just been awarded a tender to supply three of our solutions. These include DXS PoC, MyVytalCare (our new app) and DXS Devices. During the year we also were awarded membership of the
In addition our New Triage Plus solution has been running at pilot sites at one of our CCG clients and results are good. We are now receiving significant interest from additional clients to implement this exciting product.
All of the foregoing is clear evidence that our vision some years ago of the direction of travel of healthcare was correct and that the considerable investment we have made in R&D has been fully justified. We are aligned and ready to capitalise on the
In summary, DXS is entering this market by leveraging of our existing product,
DXS have four new products aimed at reducing hospital admissions, that we have begun taking to market:
- DXS Best Triage Plus - We now have our first two clients that have purchased this Referral Management Solution. It is aimed at reducing unwarranted referrals and is currently running at a RMC (Referral Management Centre). Feedback is good and interest has been shown by a number of new potential customers.
- DXS MyVytalCare - The personal care record enables a patient to enrol via
DXS Pointof Care in a GP Practice which then provides the patient with full access to their medical records via an app on their mobile device. The system automatically detects, for example, that a patient is a diabetic and then sends the patient reminders for requisite tests such as blood pressure checks, foot health checks etc that become due.
- DXS MedXPert - This product places a patient onto a NICE (
National Institute of Clinical Excellence) Pathway for a particular condition, eg Hypertension. Using our proprietary algorithm, we assess a patient in relation to a recommended treatment protocol and alerts clinicians of actions to implement to ensure treatment compliance.
- DXS Innovation - This is an initiative where various medical devices are integrated with the Patient's personal care record providing valuable data, such as blood pressure, seamlessly into the patient's personal care record.
To market and sell these solutions we are using a combination of digital marketing and our knowledgeable and effective sales team. To provide you with more insight into these products please go to the following links:
We are committed to providing you our loyal shareholders with improved communication and will be sending you invites to webinars from time to time where you can speak with our CEO.
I commend the DXS staff for tenaciously riding out the past storms and have faith that the next three years will be the most exciting in the company's history.
David is the founder of DXS. An entrepreneur by nature, David has initiated a number of businesses in the information, technology and communication sectors. He was a founding member of a diverse South African communication group with a range of media subsidiaries and holdings. For the past 11 years, David has dedicated himself to building DXS.
Following his various Sales Management roles, Steven joined DXS at its inception. Steven trained in the life sciences, is a holder of the CIM Professional Postgraduate Diploma in Marketing and Pharma Mini-MBA, and manages the
REPORT OF THE DIRECTORS
The directors present their annual report and the audited financial statements for the year ended
The directors for the year were:
D Immelman - CEO
S Bauer - MD
B Sutcliffe - Chair
The group's principal activities during the period were the development and distribution of clinical decision support to General Practitioners, Nurses and Retail Pharmacies in the
Failure to achieve predicted quantities of DXS contracts, particularly due to recent
At this stage the Group is not faced with risk relating to interest rates on loans, credit and liquidity.
The Directors do not recommend a dividend.
Research and Development
The Company continues to invest into research and development both locally and internationally and during this financial year have invested £704,336. With the consolidation of CCGs in the
The directors are responsible for preparing the financial statements for each financial year. The directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
- Select suitable accounting policies and apply them consistently.
- Make judgments and accounting estimates that are reasonable and prudent.
- State whether
UKaccounting principles have been followed subject to any material departures disclosed and explained in the financial statements and,
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in the business.
The directors are responsible for keeping proper accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company's auditors are aware of that information.
Approved by the board and signed on its behalf by:
Review of the Company's Business
The Company has managed to grow revenues from £3,255,081 at
The Company managed a profit of £224,122 even after significant increased investment of £704,336 in R&D for our new product lines.
While the foregoing has resulted in slower than expected revenue growth, management are optimistic about new opportunities going forward.
Description of Principle Risks and Uncertainties
The principle risk is that a competitor provides the market with a superior Clinical Decision Support Solution and takes market share from DXS. To mitigate this risk DXS continually meets the dynamic needs of its customers through a program of R&D.
A second risk is that of
Analysis of Business during Year Ending
Sales growth of 5% was below expectations due to
The staff headcount, including freelancers, is approximately 90 and this is considered sufficient for current requirements.
During the past year the Company continues to meet its obligations in terms of its systems and robustness, dictated by
· Group Revenue £3,428,632 an increase of 5%. Definition:
· Underlying Group Profit After Tax has declined slightly. Definition: Underlying profit provides information on the underlying performance of the business adjusting for either income or charges which are both one off or significant.
· Amortisation of deferred Research and Development expenditure in 2017 was £326,895 and in 2016 £286,169.
· Earnings Per Share 2017 0.7p, 2016 0.7p. Definition: Earnings per share is the underlying profit divided by the average number of ordinary shares in issue.
· ROCE 2017 13%, 2016 13%. Definition: Return on capital employed (ROCE) is the ratio of net operating profit of a company to its capital employed. It measures the profitability of a company by expressing its operating profit as a percentage of its capital employed.
Approved by the board and signed on its behalf by:
|Cost of sales||(468,092)||(517,991)|
|Provision for share option costs||-||(54,000)|
|Interest received and similar income||2,642||2,403|
|Interest payable and similar expenses||20,682||(27,271)|
|Profit on ordinary activities before taxation||38,832||45,936|
|Tax on Profit on ordinary activities||185,290||173,153|
|Profit for the year||224,122||219,089|
|Profit per share -|
Statement of Financial Position
|amounts falling due within one year||1,298,045||1,481,274||71,717||60,948|
|amounts falling due after one year||96,550||111,036||-||-|
|Cash at Bank and in hand||165,736||315,049||2,091||82,517|
|Creditors: amounts falling due|
|within one year||(1,044,809)||(1,197,623)||(17,872)||(17,856)|
|Net current assets||515,522||709,735||55,936||125,609|
|Total assets less current liabilities||2,978,860||2,832,533||1,420,754||1,436,305|
|amounts falling due after more than one year||(97,849)||(94,849)||-||-|
|Accruals and Deferred Income||(990,049)||(1,070,844)||-||-|
|Capital and reserves|
|Called up share capital||110,174||110,174||110,174||110,174|
|Provision for costs of share option awards||162,580||162,580||162,580||162,580|
The Financial Statements were approved and authorised for issue by the Board on
Signed on behalf of the board of directors
D Immelman S Bauer
NOTES TO THE FINANCIAL STATEMENTS
1 Summary of significant accounting policies
(a) General information and basis of preparation.
The group's principal activities during the year were the development and distribution of clinical decision support to General Practitioners, Nurses and Retail Pharmacies in the
The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 Applicable in the
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
(b ) Intangible assets
Intangible assets acquired separately from a business are capitalised at cost.
Research and development expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
Intangible assets are amortised over a straight line basis over their useful lives. The useful lives of intangible assets are as follows:
| Intangible type|| Useful life|| Reasons|
|Development expenditure||5 years from the date that the specified product is completed and available for distribution||Period of time for benefit to be received|
Provision is made for any impairment.
(c) Tangible fixed assets
The company capitalises items purchased as Tangible Fixed Assets which have a cost in excess of £500.
Tangible fixed assets are stated at cost less accumulated depreciation.
Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:
Plant and equipment 3-4 years straight line
(d) Debtors and creditors receivable/ payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administration expenses
(e ) Loans and borrowings
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently they are measured at amortised cost using an effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.
Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event. It is probable that an outflow of economic benefit will be required in settlement and the amount can be reliably estimated.
Current tax represents the amount of tax payable or receivable in respect of the taxable profit for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
(h) Turnover and other income
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policy adopted for the recognition of turnover is as follows -
Sale of services
Turnover is from the sale of opportunities to the pharmaceutical industry and the
(i) Foreign currency
Foreign currency transactions are initially recognised by applying to the foreign currency amount the exchange rate between the functional currency and the foreign currency at the date of the transaction.
Monetary assets and liabilities denominated in a foreign currency at the balance sheet date are translated using the closing rate
(j) Employee benefits
When employees have rendered service to the company, short term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. The company operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.
Rentals payable and receivable under operating leases are charged to the profit and loss account on a straight-line basis over the period of the lease.
(l) Share option Scheme Accounting Policy
The company recognised as an expense, the fair value of share options granted over their vesting period. The fair value is calculated by applying an option pricing model.
Factors affecting the model are : expected volatility, exercise price, weighted average share price, option life and risk free interest rate. In respect of options granted by the company -
- uses the Black Scholes calculator as the option pricing model,
- calculates volatility using the Adam Greene Volatility method using an average share price over the previous 104 weeks,
- the directors base their calculations on an option life of 2 years
(m) Key judgements and Key accounting estimates
There are no Key judgements or Key Accounting estimates with a material effect on the carrying value of assets and liabilities.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.