Half-year report InPublic Half-year report

DXS INTERNATIONAL PLC

(AQSE: DXSP)

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.

Financial Highlights

  • 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.

Operational Highlights

  • 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.

Refined Strategy

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 GroupMonths ended 31 Oct 2021    

Unaudited
6 Months ended
31 Oct 2020
   

Audited
Year to
30 April 2021
  Continuing Operations   Continuing Operations   Continuing Operations
    £     £     £
Turnover 1,618,439   1,716,424   3,605,766
Cost of Sales (191,952)   (177,367)   (419,757)
  _________   _________   _________
Gross Profit 1,426,487   1,539,057   3,186,009
Administration Costs (1,111,965)   (1,064,034)   (1,917,310)
Depreciation and Amortisation (274,093)   (302,623)   (980,683)
  _________   _________   _________
Operating Profit 40,429   172,398   288,016
Sundry Income 2,152   -   9,539
  _________   _________   _________
  42,581   172,398   297,555
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          
  • basic
0.3p   0.6p   1p
  • fully diluted
0.3p   0.5p   1p
  =========   =========   =========

STATEMENT of FINANCIAL POSITION

as at 31 October 2021

  Unaudited
Group at
31 Oct 2021
Unaudited
Group at
31 Oct 2020
Audited
Group at
30 April 2021
    £   £   £
Fixed Assets      
Intangible Assets 4,921,943 4,273,801 4,557,969
Tangible Assets 961 1,680 1,333
  _________ _________ _________
  4,922,904 4,275,481 4,559,302
  _________ _________ _________
Current assets      
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
  _________ _________ _________
  864,065 1,490,820 1,642,576
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)
Deferred income (447,958) (482,358) (653,688)
  _________ _________ _________
  4,284,744 3,875,304 4,147,392
  ========= ========= =========
Capital and reserves      
Called up share capital 159,246 159,246 159,246
Share Premium 2,676,321 2,676,321 2,676,321
Provision for costs of share option awards 173,808 173,808 173,808
Retained earnings 1,275,369 865,929 1,138,017
  _________ _________ _________
Shareholders’ Funds 4,284,744 3,875,304 4,147,392
  ========= ========= =========
       

STATEMENT of CASH FLOWS

Six months ended 31 October 2021

  Unaudited
Group
Six months ended 31 Oct 2021
Unaudited
Group
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
Interest paid (21,154) (21,842) (43,882)
Sundry Income 2,152 - 9,539
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)
  _________ _________ _________
  (637,695) (569,588) (1.531,469)
  _________ _________ _________
       
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
  _________ _________ _________
  84,444 165,926 72,836
  _________ _________ _________
       
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)
Cash flow 212.992 (72,836) (218,327) (78,171)
  _________ _________ _________ _________
         
At 30 April 2020 (207,139) (449,125) 792,318 136,054
Cash flow 64,771 84,444 (249,037) (99,882)
  _________ _________ _________ _________
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 U.K. LLP.

The Directors of DXS International plc accept responsibility for this announcement

Contacts:

David Immelman      (Chief Executive)
DXS International plc
01252 719800
david@dxs-systems.com
https://www.dxs-systems.co.uk  


Corporate Advisor

 
 
City & Merchant
David Papworth

 
020 7101 7676

 


Corporate Broker

 
 
Hybridan LLP
Claire Louise Noyce

 
020 3764 2341

 

Notes to Editors

About DXS:

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.

 


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