for the year ended
The Board of
- Profit after tax rose nearly five-fold to £428,502, compared to £85,096 in the previous year.
- Operating Profit of £308,423 (2019: Loss £137,228) achieved mainly due to a reduction in overhead for completed projects.
- Turnover remained steady at £3,279,787 (2019: £3,346,343) in spite of the unprecedented interruption to business as usual during the last quarter of the financial year.
- New equity of over £1 million raised in
February 2020to be applied to launch and ongoing development of new solutions.
- Cash at bank £1,010,645 as of
30 April 2020.
- DXS’ Point of Care solution re-accredited for the new
NHSDigital Framework to receive central NHSfunding.
- New Expert Hypertension solution, earmarked for
UKand International markets completed and ready for launch.
Current Trading Situation
Although the process continues, the current public health situation has understandably delayed
We are however pleased to announce that during this lockdown period we were able to sustain our core revenue stream, with only a marginal drop from the previous year, and envisage revenue growth towards the end of this year. Even without the funding the company remained cash positive.
We have used this period as an opportunity to redirect our focus on bringing forward some solution development initiatives for ExpertCare, MyVytalCare and CompleteCare that we expect will reap rewards once the market normalises. These new solutions will play an important role in helping clinicians manage mounting chronic disease and patient backlogs created by the focus on the current pandemic.
We remain focused on our overall strategy of building significant revenue through our Expert Long-Term Care solutions, into which we have been heavily investing for the past five years. We remain confident and optimistic about the future growth of the business, and this is supported by our own organic investment into its development of £904,503 during the year, supported by new investors committing over £1 million in February this year.
“The Covid-19 pandemic brought with it a host of new business challenges. In this regard I am proud to say that both our management and staff are facing these new challenges with great tenacity and resolve. Over the past months we have been able to introduce seamless home working protocols and procedures with only minimal disruption to productivity. Additionally, despite our ongoing business continuity efforts we have been working hard at laying the groundwork for our ISO 270001, ISO 22301 and ISO 2000 accreditation which we hope to achieve in the final quarter of the year.
At the same time, we have been completing the clinical and technical designs for the next version of our ExpertCare Hypertension solution while also steering the solution through the arduous Medicines and Healthcare products Regulatory Agency (MHRA) assessment, as ExpertCare Hypertension is classed as a medical device. This process is well advanced. I am convinced that these efforts together will place us on an increasing sound footing enabling us to deliver greater shareholder value in the next period.”
The Directors of
David Immelman 01252 719800
City & Merchant 020 7101 7676
Notes to Editors
The following information is extracted from 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:
- B Sutcliffe – Chairman
- D Immelman – CEO
- S Bauer – COO
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
The group continues to invest in research and development both locally and internationally and during this financial year has invested £904,503 into R&D for the introduction, continuation and completion of a number of new DXS solutions. These are mainly targeted at providing clinicians and patients with solutions to long term conditions. These products are aligned with the
Two other new products, also delayed, are targeted to be launched to market during the course of the year.
Subsequent to year end the company received a COVID loan of £190,000.
The Directors believe that there is no material risk arising in respect of interest rates on loans, credit and liquidity.
The Directors do not recommend a dividend.
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.
Directors’ Responsibilities to Auditors
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.
So far as the director is aware, there is no relevant audit information of which the company’s auditor is unaware.
Approved by the board and signed on its behalf by:
D A Immelman
Section 172 Report
Section 172 of the Companies Act requires that a director of the company is managing in the best interests of all stakeholders – Customers, Employees and Shareholders.
In the spirit of above, the Directors of
Our primary focus is on our Customers and here we regard our relationships and channels of communications of paramount importance. We operate in a sensitive environment, healthcare, and as such ensure that we meet all the standards required by our Customers, such as Information Governance and Clinical Safety. In addition, we are in the process of complying with ISO which assures an overarching good governance approach to all operations.
The Board is focused on delivering value for Shareholders underpinned by motivated Employees delivering above average delivery of solutions and service to Customers. In achieving the foregoing, the company focuses on continued innovation via a policy of research and development funded through organic investment plus capital raises, as agreed at shareholder meetings, and supported by clearly communicated vision and direction.
In our communication to Shareholders the Board is clear in terms of its short, medium and long-term strategy and maintains an open-door approach to Shareholders seeking additional clarity on any issue. The Board release notices on a regular basis informing Shareholders of developments in areas of business progress, non-confidential strategic decisions and any change to company policy. Risks and opportunities are set out in this strategic review.
The Group is small and while clear management structures are in place all Employees, if required, have direct access to the Executive Directors on a daily basis and, if necessary, to the Chairman. The group retains HR services to ensure the fair and equitable treatment of Employees. The company promotes a policy of promoting from within supported by training and mentorship. We encourage diverse thinking and recognise strengths and contribution to the business. Finally, we recognise that as a responsible organisation we identify and deliver on our social responsibility.
Review of the company’s business
The company's profit after tax is £428,502 (2019 - £85,096). The pre-tax Profit before tax amounts to £239,307 (2019 Loss (£199,615)). The company has a credit of £189,195 for
The profit after tax for the year was increased by £343,406 allowing for a significant investment into R&D of £904,503. Considering the overall impact of COVID-19, revenue remained robust with only a marginal drop of 2.5% in revenue.
Being an accredited
Although the framework agreement for GPIT Futures (the revised
It should be noted that currently the recently signed GPIT Futures framework agreement, only covers DXS’ core solution,
Following a successful fundraise of more than £1 million in
Our strategy remains aligned with both the new
Principal risks and uncertainties
The principal risk to the company in the
Failure to achieve predicted quantities of DXS contracts, and slower development of additional revenue streams may result in revenues growing more slowly than anticipated. These may be mitigated due to the launch of market ready new products once the current situation normalises.
While the country is moving to easing of restrictions, the impact of COVID-19 on business going forward remains uncertain, and can impact the GPIT Futures accreditation of our new solutions as well as a slower than anticipated access to market of our new Hypertension solution.
In addition, our plans for expansion outside of the
Analysis of Business during Year Ending
While revenue was marginally below expectations largely due to the unprecedented pandemic and business as usual being put on hold, profit increased significantly by £316,406. This was due to some projects being completed and related expenses being rationalised resulting in reduced costs.
- Group Revenue of £3,279,787 has decreased 2.5%. This was largely due to the unprecedented pandemic and business as usual being put on hold. Definition:
Total Groupsales including distribution of clinical decision support to General Practitioners and the licensing of DXS to CCGs and healthcare publishers. Includes the sale of medicine education slots to the Pharmaceutical industry.
- Underlying Group Profit After Tax increased by £316,406. This was mainly due to a reduction in overhead for completed projects. Definition: Underlying profit provides information on the underlying performance of the business.
- Depreciation and amortisation of deferred Research and Development expenditure in 2020 was £571,562 and in 2019 was £530,292.
- Earnings Per Share 2020 1.1p, 2019 0.2p. Definition: Earnings per share is the underlying profit divided by the weighted average number of ordinary shares in issue.
- ROE 2020 16%, 2019 4%. Definition: Return on Equity (ROE) is the ratio of net profit of a company to its shareholders funds. It measures the profitability of a company by expressing its net profit as a percentage of its shareholders funds which include share capital, share premium, provision for costs of share option awards and retained earnings. Due to the significant share issue in
February 2020, the calculated ROE 2020 has excluded this increase in share capital and share premium from the ROE calculation as the directors believe that the results for the year were unaffected by the proceeds of the share issue.
Approved by the board and signed on its behalf by:
|Cost of Sales||(318,424)||(385,426)|
|Depreciation and Amortisation||(571,562)||(530,292)|
|Interest received and similar income||4,398||221|
|Interest payable and similar expenses||(69,116)||(62,387)|
|Profit/(Loss) on ordinary activities before taxation||239,307||(199,615)|
|Tax on profit/loss ordinary activities||189,195||284,711|
|Profit for the period||428,502||85,096|
|Profit per share|
|- fully diluted||1.1p||0.2p|
Statement of Other Comprehensive Income
|Profit for the year||428,502||85,096|
Other comprehensive income
|Tax on components of other comprehensive income||-||-|
|Total comprehensive income for the year||428,502||85,096|
Statement of Financial Position
|Group 2020||Group 2019||Company 2020||Company 2019|
|Debtors: amounts falling due within one year||759,405||1,688,720||91,051||46,638|
|Cash at bank and in hand||1,010,645||55,242||911,854||41,344|
|Creditors: amounts falling due within one year||(1,180,704)||(1,518,021)||(37,360)||(69,817)|
|Net current assets||589,346||225,941||965,545||18,165|
|Total assets less current liabilities||4,597,862||3,902,142||2,976,045||1,917,549|
|Amounts falling due after more than one year||(376,289)||(464,951)||-||-|
|Capital and reserves|
|Called up share capital||159,246||116,099||159,246||116,099|
|Share option reserve||173,808||162,580||173,808||162,580|
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. The Company made a profit of £80,099 for the year (2019 Loss £393,488).
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
In the opinion of the Directors the group has sufficient funding to continue as a going concern for at least twelve months from the date of approval of the financial statements.
Should the group be unable to continue trading, adjustments would have to be made to reduce the value of assets to their recoverable amounts and to provide for any further liabilities that might arise. The financial statements do not reflect any such adjustments.
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, other than specific identifiable 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. Developed products are for use within the
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 specific 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.
Government Grants, including non - monetary grants, shall not be recognised until there is reasonable assurance that:
(a) the entity will comply with the conditions attached to them; and
(b) the grants will be received.
An entity shall recognise grants either based on the performance model or the accrual model. This policy choice shall be applied on a class-by-class basis.
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 reserve 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 –
- use of the Black Scholes calculator as the option pricing model,
- calculated volatility using the Adam Greene Volatility method using an average share price of 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 Group has used a level of judgement around key assumptions on the technical feasibilty of products under development, the consideration of the estimated useful lives of these products and a degree of estimate in respect of the capitalised attributable cost.
(n) Reduced disclosure