ChallengerX Plc - Interim report for the period ended 31 December 2021 PR Newswire

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014, as retained as part of the law of England and Wales. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

25 March 2022

ChallengerX PLC

("ChallengerX" or the “Company")

Interim report for the period ended 31 December 2021

ChallengerX PLC (AQSE: CXS), a Software-as-a-Service “SaaS 2.0” influence-monetization tech and digital marketing company serving amateur and semi-pro sports leagues, teams, and players around the world, announces its unaudited financial results for the period ending 31 December 2021.

Highlights:

  • Raised a total of €1,000,000 (approx. £832,000) in two pre-IPO rounds into its wholly owned subsidiary SportsX SAS, and £752,000 (before expenses) in its 23 December Aquis IPO.  Total invested capital after expenses was £1,467,000.
  • Further developed the Company’s digital assets.
  • Cash and cash equivalents at year end were £1,385,000.

Post-period highlights:

  • Began negotiations with several new football (soccer) clubs and leagues, and a rugby league regarding the deployment of the Company’s monetization tools.
  • Further developed the sales and marketing plan and organization.
  • As previously announced, approximately €660,000 (£549,000) in cash in our wholly owned French subsidiary SportsX SAS was mistakenly frozen by the French government as part of an ongoing investigation into a former executive, and we continue to work diligently to recover these funds.

Outlook:

  • Technology: The Company’s core monetization technology is maturing, and the Company has begun generating revenues.
  • New Customers: The Company is in late-stage discussions with multiple football (soccer) and rugby leagues, teams, and sports news websites, and the Board is optimistic regarding the possibility of multiple new customer and strategic partnership wins during the next few months.

Market Size:

The Board believes that the market for the Company’s “influence monetization tech” is extremely large in the context of the global amateur and semi-pro sports ecosystem, which includes players, teams, sports news sites, and other influencers such as commentators and bloggers.  Globally the number of active football (soccer) clubs is well over 1,000,000, and each of these clubs likely has 20 to 25 players, many of whom have their own fans and following. Nearly 100% of these clubs and players are eager to increase their income without incurring any upfront costs, and with a total market of only 1,000,000 clubs that could on average generate just £100 in monthly revenues for the Company, it would set the total available market at £1.2 billion per annum.

Commenting on the results, John May, Non-Executive Chairman of ChallengerX, said: “The Company’s successful flotation on the AQSE Growth Market was a significant milestone and provided the Company with the investor base and capital it needs to continue the development of its influence monetization technologies and new customer acquisition initiatives.”

The directors of ChallengerX plc accept responsibility for this announcement.

I would also like to take this opportunity to thank all our shareholders for their support.

John May, Non-Executive Chairman

For further information please contact:

ChallengerX
John May
Non-Executive Chairman
Phone: +44 7860 715075
Email: john@challengerx.io
Brian Connell, CFA
Finance Director and CEO
Phone: +44 207 459 4148
Email: brian@challengerx.io
First Sentinel,  Corporate Adviser
Brian Stockbridge

Gabrielle Cordeiro
+44 7876 888 011

About ChallengerX PLC:

Listed on the Aquis Stock Exchange in London, ChallengerX plc, is a Software-as-a-Service “SaaS 2.0” monetization technology and digital marketing company serving sports clubs, players, sports news sites, and other influencers around the world.  Its technology helps its customers, at no additional cost, generate incremental recurring revenues from their existing followers and from the photos and videos they already post online.

ChallengerX also offers bespoke service packages that help clubs develop and build their brand, rapidly grow their base of fans, gain additional higher-end sponsors, and source and sell club merchandise through a club-branded eStore the Company operates on each club’s behalf.

Unaudited consolidated statement of comprehensive income
for the period ended 31 December 2021

Period ended 
31 December 2021
Note £000
Continuing operations
Revenue -
-
Administrative expenses (206)
Loss before taxation (206)
Taxation
Total comprehensive loss for the period (206)
Loss per share (pence) 3
Basic and diluted (0.08)

Unaudited consolidated statement of changes in equity
for the period ended 31 December 2021

Share Share Retained
capital premium earnings Total
£000 £000 £000 £000
Total owners’ equity at 7 June 2021 - - - -
Transactions with owners:
- Share capital issued by Company 288 1,179 - 1,467
- Share issue costs - - - -
    Total transactions with owners 288 1,179 - 1,467
- Comprehensive loss:
- Loss for the period - - (206) (206)
    Total comprehensive loss for the period - - (206) (206)
Total owners’ equity at 31 December 2021 288 1,179 (206) 1,261

Consolidated Statement of financial position
as of 31 December 2021

31 Dec 2021
Note £000
Assets
Non-current assets
Intangible assets – goodwill 18
Current assets
Trade and other receivables 16
Cash and cash equivalents 1,385
1,401
Liabilities
Current liabilities
Trade and other payables  158
158
Net current assets 1,243
Net assets 1,261
Owners’ equity
Ordinary Share Capital 2 288
Share premium 1,179
Retained earnings (206)
Total owners’ equity  1,261

Unaudited Consolidated statement of Cash Flows
for the period ended 31 Dec 2021

Period ended 
31 Dec 2021 
£000
Loss before taxation (206)
Changes in working capital
(Increase) / Decrease in trade and other receivables (16)
Increase/(decrease) in payables 158
Net cash flow from operating activities 142
Cash flows from investing activities
Goodwill on acquisition 18
Net cash from investing activities -
Cash flows from financing activities
Proceeds from issue of Ordinary Shares 1,467
Net cash from/(used in) financing activities 1,467
Net increase/(decrease) in cash and cash equivalents 1,385
Cash and cash equivalents at beginning of period -
Cash and cash equivalents at end of period 1,385

Notes to the interim accounts

for the period ended 31 December 2021

1. General information and accounting policies

  • ChallengerX PLC is a company incorporated in the United Kingdom
  • Its 100% wholly-owned subsidiary SportsX SAS is incorporated in France
  • The company was incorporated on 7 June 2021 and therefore there is no comparative statement of financial position
  • The condensed consolidated interim financial statements do not constitute statutory accounts as defined in Section 434 of the Companies Act 2006
  • The financial information for the period ended 31 December 2021 is prepared in accordance with IFRS
  • The condensed consolidated interim financial statements do not include all of the information required for full annual financial statements
  • The condensed interim financial statements were authorised for issue on 23 March 2022

2. Issued capital

Issued capital follows:

31 December 2021
Issued and fully paid £000
287,585,000 Ordinary shares of 0.01 pence each 288

3. Loss per Ordinary Share

The loss per share has been calculated based on the following results and weighted average number of shares:

31 December 2021
£000
Loss attributable to Ordinary Shareholders  (£206)
Weighted average shares in issue
Weighted average number of shares for the purposes of basic earnings per share  252,405,440
Basic and diluted loss per share (pence) (0.08p)

DISTRIBUTION OF INTERIM REPORT

Copies of the Interim Report for the period ended 31 December 2021 are available on the Company's website www.challengerx.io