DXS INTERNATIONAL PLC
HALF YEAR RESULTS
DXS International plc ("DXS" or the "Company"), the digital clinical decision support company, is pleased to provide shareholders with its unaudited interim results for the half year ending 31 October 2021.
- Revenue for the six-month period has held well at £1,618,439 (2020: £1,716,424).
- In line with projections, profit before tax is £21,427 (2020: £150,556) and profit after tax £137,352 (2020: £224,825).
- Cash on hand £543,000.
Results overall are in line with projections for the revised strategy to capitalise on opportunities resulting from COVID including increased investment in order to scale solutions aimed at managing significant backlogs in “healthcare business as usual” and the increased clinician shortage crisis. DXS has been investing for growth over the past six months and is expecting to have a stronger second half to the business, as it traditionally does and did in the financial year to 30 April 2021.
- CompleteCare templates and toolkits well received in early pilots, providing much needed solutions in managing healthcare backlogs in areas such as medicines monitoring, cancer care, mental health and learning disability.
- ExpertCare hypertension pilots completed, confirming that only 50% of the pilot patients are being managed in compliance with “Gold Standard” treatment guidelines and that by using ExpertCare this immediately improved to 75%.
- Development of our new cloud based DXS Point of Care solution is progressing well.
Reorganisation of the NHS Management Structure
The current 106 Clinical Commissioning Groups responsible for the planning and commissioning of healthcare in their respective areas, and responsible for approximately 60% of the NHS budget, are being replaced by 42 Integrated Care Systems (ICSs). These ICSs are intended to bring about major changes in how health and care services are planned, paid for and delivered, and are a key part of the future direction for the NHS as set out in the NHS Long Term Plan. Another major change for primary care has been the formation of 1,250 Primary Care Networks (PCNs) each representing small groupings of GP practices with registered patients numbering between 30,000 -50,000.
One major opportunity this represents for DXS is that these PCN’s are mandated to utilise clinical pharmacists, a 70% NHS funded reimbursable role, to conduct structured medicine reviews on behalf of the GP practices. Our new AI medicines management solution will provide an invaluable tool empowering these pharmacists to manage complex reviews with minimal GP input and help the NHS manage COVID backlogs and GP shortages.
Against this backdrop, we have refined our strategy by accelerating our planned development of adding additional long-term conditions, such as diabetes, to our new solutions, underpinned by an aggressive sales and marketing campaign. Due to this increased investment in growth, we expect profitability to decline in the short to medium term resulting in an aggressive upward revenue and profitability curve within 18 months.
David Immelman, Chief Executive of DXS said: “We remain resolute in our conviction that our foresight and efforts into developing a world beating expert long term condition management solutions is 100% aligned with the global strategy of digital transformation in healthcare. This was again evidenced by the recent announcement of the NHS commitment to digital transformation to merge NHS Digital and NHSX with NHS England and Improvement.
We expect our suite of Expert AI Solutions to have a major positive impact in the improvement of healthcare outcomes.”
INTERIM RESULTS to 31 OCTOBER 2021
CONSOLIDATED INCOME STATEMENT
for the six-month period ended 31 October 2021
|Unaudited Group 6 Months ended 31 Oct 2021|| |
6 Months ended
31 Oct 2020
30 April 2021
|Continuing Operations||Continuing Operations||Continuing Operations|
|Cost of Sales||(191,952)||(177,367)||(419,757)|
|Depreciation and Amortisation||(274,093)||(302,623)||(980,683)|
|Interest payable and similar expenses||(21,154)||(21,842)||(43,882|
|Profit on ordinary activities before taxation||21,427||150,556||253,673|
|Tax on profit on ordinary activities||115,925||74,269||243,240|
|Profit for the period||137,352||224,825||496,913|
|Profit per share|
STATEMENT of FINANCIAL POSITION
as at 31 October 2021
31 Oct 2021
31 Oct 2020
30 April 2021
|Debtors Amounts falling due within one year||320,784||283,515||850,258|
|Cash at bank and in hand||543,281||1,207,305||702,318|
|Creditors: amounts falling due within one year||(689,586)||(845,059)||(951,673)|
|Net current assets / (liabilities)||174,479||645,761||690,903|
|Total assets less current liabilities||5,097,383||4,921,242||5,250,205|
|Creditors: amounts falling due after more than one year||(364,681)||(563,580)||(449,125)|
|Capital and reserves|
|Called up share capital||159,246||159,246||159,246|
|Provision for costs of share option awards||173,808||173,808||173,808|
STATEMENT of CASH FLOWS
Six months ended 31 October 2021
Six months ended 31 Oct 2021
Six months ended 31 Oct 2020
|Audited Group year ended 30 April 2021|
|Cash flow from operating activities||242,179||435,895||1,088,409|
|R&D tax credit||249,925||186,269||186,240|
|Cash flow from operating activities||473,102||600,322||1,240,306|
|Cash flow from investing activities|
|Payments to acquire intangible fixed assets||(637,695)||(568,259)||(1,529,762)|
|Payments to acquire tangible fixed assets||-||(1,329)||(1,707)|
|Cash flow from investing activities|
|Repayment of long term loans||(84,444)||(24,074)||(117,164)|
|Advance of long term loans||-||190,000||190,000|
|Net increase / (decrease) in cash and cash equivalents||(249,037)||196,660||(218,327)|
|Cash and Cash equivalents at 30 April 2021||792,318||1,010,645||1,010,645|
|Cash and Cash equivalents at 3 October 2020||543,281||1,207,305||792,318|
|Cash and Cash equivalents consists of:|
|Cash at bank and in hand||543,281||1,207,305||792,318|
Net Debt Reconciliation
|Current Debt||Non Current Debt||Cash||Total|
|At 30 April 2019||(420,131)||(376,289)||1,010,645||(214,225)|
|At 30 April 2020||(207,139)||(449,125)||792,318||136,054|
|At 31 October 2021||(142,368)||(364,681)||543,281||36,232|
The above figures have not been reviewed by the company's auditors Crowe
The Directors of DXS International plc accept responsibility for this announcement
| David Immelman (Chief Executive)|
DXS International plc
| 01252 719800|
| Corporate Advisor|
| City & Merchant |
| 020 7101 7676|
| Corporate Broker|
| Hybridan LLP|
Claire Louise Noyce
| 020 3764 2341|
Notes to Editors
DXS International presents up to date treatment guidelines and recommendations, from Clinical Commissioning Groups and other trusted NHS sources, to doctors, nurses and pharmacists in their workflow and during the patient consultation. This effective clinical decision support ultimately translates to improved healthcare outcomes delivered more cost effectively and which should significantly contribute towards the NHS achieving its projected efficiency savings.