Aquis Exchange PLC - Interim Results
RNS Number : 2239A
Aquis Exchange PLC
22 September 2022
 

22 September 2022

Aquis Exchange PLC

("Aquis", the "Company" or the "Group")

 

Interim results for the six months ended 30 June 2022

Continued revenue growth and investment in the future

 

Aquis Exchange PLC (AQX.L), the exchange services group, is pleased to announce its unaudited results for the six months ended 30 June 2022.

 

Highlights:

 

All three divisions were profitable in the period.

 

·     

Net Revenue (1)  increased 21% to £8.3 million (1H21: £6.9 million)

·     

EBITDA at £1.4 million (1H21: £1.6 million) following a significant investment in technology and development headcount to drive future growth

·     

Pre-tax profit of £0.7 million (1H21: £1.0 million)

·     

Cash and cash equivalents at 30 June 2022 of £13.3 million (30 June 2021: £13.9 million)

·     

Membership of Aquis Exchange (AQX) grew to 42 (1H21: 39), with a small decline in average monthly usage reflecting more volatile market conditions

·     

Market share of all pan-European trading ended the period at 5.20% in 2Q22 (4Q21: 5.35%)

·     

12 new admissions to Aquis Stock Exchange (AQSE) completed during 1H22 (1H21: 14))

·     

Signature of a new significant multi-year technology licence contract

·     

Aquis Matching Pool (AMP) successfully launched following the asset purchase from UBS on 4 April 2022, with average monthly market share of c. 0.5% added to the Group total share

 

Post-period highlights:

 

·     

Currently tracking in line with market expectations for the full year

·     

Signature of an additional new significant multi-year technology licence contract

 

Alasdair Haynes, Chief Executive Officer of Aquis, commented:

 

"Our revenues have continued to increase, reflecting the strong momentum across the Group. This growth has been driven by increased contributions from the principal business divisions: pan-European secondary trading, technology sales, primary issuers and data revenues. The continued strength of our offering in this division is demonstrated by our finishing with 5.20% of all pan-European secondary trading by the end of 2Q22. We are also particularly encouraged by the number of new significant technology licenses that continue to be signed as this growing division becomes an increasingly material and important part of our business.

 

Aquis also successfully completed the asset purchase of the Aquis Matching Pool from UBS and is now able to offer a full product suite to its customers. We will continue to enhance this area and look forward to offering further product innovation in this space to enable clients to execute the trading strategies they wish.

 

While we anticipate the prevailing economic uncertainty will continue to impact market participants in the short to medium term, we have demonstrated we have the right model, team, technology and vision to deliver shareholder value and look to the future with confidence."

 

 

An overview of the results from Alasdair Haynes, CEO, is available to view on this link:

https://www.brrmedia.co.uk/broadcasts-embed/

 

The Group will be hosting webinars for analysts and retail investors today at 9.30 and 14.30 respectively.

 

If you would like to register for the analyst webinar, please contact aquis@almapr.co.uk . Investors who would like to attend the retail investor webinar can sign up to Investor Meet Company for free and add themselves to the meeting via https://www.investormeetcompany.com/aquis-exchange-plc/register-investor . Investors who have already registered will be automatically invited.

 

 

(1)   Net revenue of £8.3m comprises revenues of £7.9m and impairment credit of £0.4m

 

 

 

Enquiries:

 

Aquis Exchange PLC

Alasdair Haynes, CEO

Richard Fisher, CFO

Andrea Lee

 

Tel: +44 (0) 20 3597 6321

VSA Capital Limited (AQSE Corporate Adviser)

Andrew Raca

Pascal Wiese

 

Tel: +44(0)20 3005 5000

Alma PR (Financial PR Adviser)

Caroline Forde

Kieran Breheny

Lily Soares Smith

Pippa Crabtree

 

Tel: +44 (0) 20 3405 0209

Liberum Capital Limited (Nominated Adviser and Joint Broker)

Chris Clarke

Clayton Bush

Edward Thomas

Kane Collings

 

Tel: +44 (0) 20 3100 2000

Canaccord Genuity Limited (Joint Broker)

Emma Gabriel

Patrick Dolaghan

 

Tel: +44 (0) 20 7523 8000

 

 

 

Notes to Editors

About Aquis Exchange PLC

www.aquis.eu.

 

 



 

Chief Executive Officer's Report

 

The six months to 30 June 2022 has been another strong period of growth as we build on the revenues achieved during 2021. In addition, we have made good operational progress in all areas to help drive us towards our long-term goals. The fact that we have achieved all this amidst the continued challenging economic circumstances demonstrates our strong operational resilience and the continued demand for our unique offering.

 

We are very pleased to have acquired and smoothly integrated the Aquis Matching Pool ("AMP") into our suite of product offerings.

 

Operational Review

 

Aquis continued to develop its three divisions throughout the period:

·      Aquis Exchange (AQX): its pan-European lit equities market; which now includes its dark pool vehicle AMP;

·      Aquis Stock Exchange (AQSE): a primary listings market for small and mid-cap companies;

·      Aquis Technologies: a multi-asset class technology licensing service to an international client base

 

The Group's Market Data income stream (generated through the sale of AQX and AQSE data) has continued to grow during the period.

 

This has enabled us to continue our strong growth as synergies are developed and the business potential is harnessed.

 

In the last six months we have accelerated our planned investment in key business areas such as growing our technology development team. This investment both allows us to maintain our internally used Aquis technology set and will help drive the ongoing growth in our technology licencing business.

 

The Exchanges

 

The performance of both Aquis Exchange and Aquis Stock Exchange has progressed well. Exchange revenue increased by £0.5m (10%) from £4.9 million to £5.4 million and the number of Members grew from 39 to 42. Aquis Exchange Members decreased their trading volumes in the period, with an 8% softening in the average monthly usage in terms of chargeable orders (2Q 2022 vs 4Q 2021), reflecting the prevailing volatile market conditions. Despite this reduction the number of monthly subscriptions slightly rose. On average, there were nine Members using the top three (four post new top tier in May) subscription pricing tiers and 24 in the other five tiers, with nine liquidity providers.

 

Issuer revenue increased, reaching £0.4million as the number of admissions on AQSE grew year-on-year.

 

As the business moves forward, we anticipate AQSE and AQX will become increasingly integrated, allowing Members to benefit from the breadth of the Group's offering.

 

Aquis Exchange

Continued revenue growth in the core business despite tough market conditions

 

Aquis Exchange (AQX) is the Group's pan-European lit secondary trading equities market. It comprises the UK MTF (AQXE) and the French MTF serving EU markets (AQEU).

 

Aquis Exchange's market share of all pan-European trading had declined during the end of 2021 and start of 2022 but has averaged in excess of this level during the period since the half year close, reflecting an improved performance and also the inclusion of market share from AMP.  Total market share was 5.2% by close of 2Q22 (5.35% 4Q21, 5.77% 2Q21).

 

Aquis Matching Pool: Following the acquisition of the UBS MTF, Aquis is pleased to note the seamless transition of activity with the number of members and levels of trading experienced to date post acquisition consistent on that previously seen, with Management confident that future opportunities to grow from this current base are available through 2022 and beyond.

 

Aquis Exchange currently has an offering in excess of 2,100 stocks and ETFs across 16 European markets with the Czech market added in the period. A significant proportion of Exchange activity is now being executed on AQEU, the Group's French MTF serving EU markets.

 

Available liquidity on the exchange was at 23% in 1H22 (22% in 1H21) and it is expected this will continue to underpin future anticipated growth.

 

The recognition that Aquis Exchange's toxicity is materially lower than its competitors continues to grow amongst investment managers and the wider market. With several market drivers pushing market participants towards lower toxicity, the opportunity for Aquis Exchange to attract a wider membership from across Europe and to facilitate increased trading volumes remains significant.

 

Aquis Stock Exchange (AQSE)

Momentum building despite difficult market conditions

 

AQSE is a modern market for modern businesses, bringing positive disruption and competition to the listed SME sector. As one of the only two existing options for growing SMEs looking to IPO in the UK, Aquis' vision is for AQSE to become the home for quality growth businesses, applying core Aquis values such as transparency and innovation.

 

12 admissions were completed during 1H22 (joint with our principal competitor) compared to 14 during 1H21. All were well supported and there is a very strong pipeline of high growth and 'new economy' businesses in conversation with AQSE regarding IPO.

 

Revenue growth coupled with achieving the targeted cost synergies and savings has significantly reduced the loss generated by AQSE such that the division is currently forecast to at least break even for the financial year 2022.

 

Aquis Technologies

Progress made on a number of projects

 

Aquis licenses its leading exchange-related technology through its Aquis Technologies division. Aquis Technologies creates and licenses technology for high volume, low latency trading platforms, complex connectivity solutions and real-time trade monitoring and surveillance systems for banks, brokers, investment firms and exchanges.

 

Aquis recognises license revenue on completion of project delivery in accordance with IFRS accounting statutes, which can lead to lumpy revenue recognition, period on period. During 1H22 significant progress was made on a number of projects; and Aquis notes one new contract has been signed in the period, and a further one prior to this results announcement however, there were no completed projects during the period, consistent on 1H21. As a result, Aquis Technologies' revenue (net of provision releases) is below that recognised in 2H21, but remains significantly above that recognised in 1H21, increasing to £1.1m (1H21: £0.6m) net of provisions.

 

The successful exchange cloud technology Proof of Concept (PoC) completed in 2021 has continued to demonstrate the quality of the Aquis Technologies offering and has resulted in a number of new exchange platform prospects. The investment we have made in the first half of 2022 has allowed us to further develop our innovative technology which is at the core of Aquis Technologies, and we will be focused on furthering the growth of the Technologies division, developing its products and services to help its clients with the challenges they face and ensuring the high-performance systems continue to be enhanced.

 

Aquis Market Data

 

Aquis generates revenue from the sale of data derived from AQX (AQXE & AQEU) and AQSE to non-Member market participants.

 

Revenue from market data vendors increased significantly by £0.3m, 29%, to £1.4m for the six-month period compared to the 2021 equivalent, with continued growth in both terminal use and non-display licences across the period.

 

Financial Review

 

Net revenue increased 21% to £8.3m (1H21: £6.9m) and the EBITDA profit for the half year was £1.4m, broadly in line with the EBITDA profit of £1.6m generated in 1H21. This EBITDA profit and the profit before tax of £0.7m includes £0.4m of income recognised from an impairment credit per IFRS 9 consistent with the 1H21 impairment credit. The EBITDA has remained broadly consistent as the Group made some controlled increases in costs during both in 1H 2022 and the back end of last year as it continued to invest in personnel and technological resources. The Group will continue to invest in the future to maintain the business' growth momentum.

 

The Group's cash and cash equivalents as at 30 June 2022 were £13.3 million (30 June 2021: £13.9 million).

 

Summary and Outlook

 

Our strategic goal remains to become one of the leading exchange groups through delivering best-in-class trading opportunities, underpinned by our commitment to first class client service, transparency, simplicity and best-in-class technology. To this end, our investment in R&D will help improve the trading experience for clients, as well as improving our market position and providing further growth and value creation for shareholders. We continue to make significant investment in our technology, sales and marketing activities, in particular in cloud technology, to support our long-term growth aspirations across all activities.

 

Alongside this we are working to enhance our software licensing activities and build presence internationally. We are pleased to have made significant progress on a number of material technology contracts post-period end that will support the second half performance and into FY23, as this growing division becomes an increasingly important part of our business.

 

Looking forward, our focus continues to be on executing on our core growth strategy; increasing trading volumes and improving fundraising prospects for small and mid-cap companies. Notwithstanding the macroeconomic uncertainty, current trading is tracking in line with market expectations for the full year.

 

We have built good momentum over the past few years, despite facing numerous challenges along the way. This demonstrated the strength of our team and our offering, and I am excited to see what we can achieve across the next six months.

 

 

Alasdair Haynes

Chief Executive Officer



 

 

AQUIS EXCHANGE PLC

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 30 JUNE 2022

 




6 months ended 30/06/2022

 

Year ended 31/12/2021

 

6 months ended 30/06/2021

 

Note

 

£'000

 

£'000

 

£'000

Income Statement

 


 

 




Revenue

3

 

7,849


17,182


6,687

Impairment credit/(charge)

4

 

425


(972)


178

Administrative expenses



(6,912)


(11,930)


(5,299)

Operating profit

 


1,362


4,280


1,566

Investment income

5

 

4


-


-

Depreciation and amortisation

7,8

 

(632)


(1,032)


(543)

Net finance costs

18

 

(35)


(26)


(15)

Profit before taxation

 


699


3,222


1,008

Income tax



-


-


-

Deferred tax



-


1,089


-

Profit after taxation

 


699


4,311


1,008









Other comprehensive income

 







Items that may be reclassified subsequently to
profit or loss:








Foreign exchange differences on translation of foreign operations, net of tax

17

 

(42)


77


4

Other comprehensive loss for the year


(42)


77


4









Total comprehensive profit for the year

 

657


4,388


1,012









Earnings per share (pence)

6

 






Basic

 







Ordinary shares



3


16


4

Diluted

 







Ordinary shares



2


15


3

 

The consolidated statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

 

 

 

 

 

AQUIS EXCHANGE PLC

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2022

 




 

Note

 

Assets

 







Non-current assets

 







Goodwill

7

 

83

Intangible assets

7

 

Property, plant and equipment

8

 

Deferred tax asset

10

 

Trade and other receivables

9

 




Current assets

 







Trade and other receivables

9

 

Cash and cash equivalents






 








Total assets

 


Liabilities

 







Current liabilities

 







Trade and other payables

11

 









Non-current liabilities

 







Lease liabilities

18

 

Total liabilities

 


 
















Net assets

 


 








Equity

 







Called up share capital

12

 

2,751

Share premium account

13

 

Other reserves

14

 

Treasury shares

16

 

Retained earnings

15

 

6,137

Foreign currency translation reserve

17

 

36


4

Total equity

 


 

 

 

The notes to the financial statements on pages 6 to 16 form an integral part of these financial statements. The interim financial statements were approved by the board of directors and authorised for issue on 22 September 2022 and are signed on its behalf by:

 

R Fisher

Director

 

A Haynes

Director

 


 

 

 

AQUIS EXCHANGE PLC

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2022

 


Note

Share Capital

 

Share Premium

 

Other Reserves

 

 

Treasury Shares

 

Retained Earnings

 

Foreign Currency Translation Reserve

 

Total

 


£'000

 

£'000

 

£'000

 

 

£'000

 

£'000

 

£'000

 

£'000

 















Balance at 1 January 2021

 

2,717


10,892


761


 

(490)


 

1,127


 

1


15,008

 















Profit for the 6-month period ended 30/06/2021







 

 


1,008




1,008

Issue of new shares


32


846










878

Movement in share option reserve





294








294

Movement in treasury shares







 

(71)






(71)

Foreign exchange differences on translation of foreign operations











3


 

3

Balance at 30 June 2021

2,749


11,738


1,055


 

(561)


2,135


4


17,120

Profit for the 6 month period ended

31/12/2021






3,303




3,303

Issue of new shares


2


33










35

Movement in share option reserve




63








63

Movement in Treasury Shares






(966)






(966)

Foreign exchange differences on

translation of foreign operations










74


 

74

Balance at 31 December 2021

2,751


11,771


1,118


(1,527)


5,438


78



19,629

Profit for the 6-month period ended

30/06/2022






699




699

Issue of new shares

12,13



9










9

Movement in share option reserve

14

 



 

 

742








742

Movement in treasury shares

16

 






 

(1,474)






(1,474)

Foreign exchange differences on translation of foreign operations

17











(42)


 

 

(42)

Balance at 30 June 2022

 

2,751


11,780


1,860


 

(3,001)


 

6,137


 

36


19,563























 

AQUIS EXCHANGE PLC

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 30 JUNE 2022

 




Note

6 months ended 30/06/2022

 

Year ended 31/12/2021

 

6 months ended 30/06/2021

 




£'000


£'000


£'000

Cash flows from operating activities

 







Cash generated/absorbed by operations

19

1,066


3,157


1,215


Tax refunded



-


-


-


Finance expense on lease liabilities

18

35


(26)


(15)


Net cash inflow from operating activities

1,101

 

3,131

 

1,200

 









Investing Activities

 








Recognition of intangible assets

7

(281)


(350)


(154)


Purchase of property, plant and equipment

8

(478)


(320)


(163)


Interest received


5

4


-


-


Net cash used in / generated by investing activities

(755)

 

(670)

 

(388)

 









Financing Activities

 








Proceeds from share issue

12,13

9


913


878


Purchase of treasury shares

16

(1,000)


(1,100)


(71)


Principal portion of lease liability

18

(39)


(573)


(101)


Net cash (used in)/ generated by financing activities

(1,030)

 

(760)

 

777

 









Net increase/(decrease) in cash and cash equivalents

(684)


1,701


1,589

Cash and cash equivalents at the beginning of the period

14,046


12,268


12,268

Effect of exchange rate changes on cash and cash equivalents

(42)


77


3

Cash and cash equivalents at the end of the period

13,320

 

14,046

 

13,860

 



 

AQUIS EXCHANGE PLC

NOTES TO THE FINANCIAL STATEMENTS

 

1.     Basis of preparation of half-year report

This condensed consolidated interim financial report for the half-year reporting period beginning 1 January 2022 and ending 30 June 2022 ("interim period") has been prepared in accordance with Accounting Standard IAS 34 Interim Financial Reporting.

The interim report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 31 December 2021 and any public announcements made by Aquis Exchange PLC ("Aquis" or the "Company") during the interim reporting period.

The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.

 

2.     Significant changes in the current reporting period

The financial position and performance of the Group was not affected by any specific events and transactions during the six months to 30 June 2022. However, it is worth noting the following:

·      On 4 April 2022, the group assumed the business activities of UBS MTF, the non-displayed matching pool. This initiative represented a significant extension of the equities trading services the group offers its clients and complements its existing suite of lit liquidity pools and range of order types.

 

3.     Revenue

An analysis of the Group's revenue is as follows:


6 months ended 30/06/2022

 

Year ended 31/12/2021

 

6 months ended 30/06/2021

 

£'000

 

£'000

 

£'000

Exchange Fees

5,387


9,766


4,899

Licence Fees

662


4,405


379

Issuer Fees

424


2,319


340

Data Vendor Fees

1,376


692


1,069


7,849

 

17,182

 

6,687

 

 

 

 

AQUIS EXCHANGE PLC

NOTES TO THE FINANCIAL STATEMENTS (continued)

 

4.     Expected credit loss

The expected credit loss on licensing contract assets has been calculated in accordance with IFRS 9: 


 

£'000

 



As at 31/12/2020

 

                508

Expected credit loss reversal for the period


(178)

As at 30/06/2021

 

330

Expected credit loss charge for the period


1,150

As at 31/12/2021

 

1,480

Expected credit loss reversal for the period


(425)

As at 30/06/2022

 

5.     Investment income


 

6 months ended 30/06/2022

 

Year ended 31/12/2021

 

6 months ended 30/06/2021

 

 

£'000

 

£'000

 

£'000

Interest income on bank deposits

 

4

 

0

 

0

 

6.     Earnings per share


6 months ended 30/06/2022

 

Year ended 31/12/2021

 

6 months ended 30/06/2021

 






Number of Shares ('000)

 





Weighted average number of ordinary shares for basic earnings per share

27,509


27,340


27,197

Weighted average number of ordinary shares for diluted earnings per share

28,431


28,457


28,638

Earnings (£'000)

 





Profit for the period from continued operations

699


4,311


1,008

Basic and diluted earnings per share (pence)

 





Basic earnings per ordinary share

3


16


4

Diluted earnings per ordinary share

2


15


3

 

 

 

 

AQUIS EXCHANGE PLC

NOTES TO THE FINANCIAL STATEMENTS (continued)

 

7.     Intangible assets


Group Developed Trading Platforms

 

Other Intangibles

 

 

 

Goodwill

 

 

 

 

£'000

 

£'000

 

Cost

 

 

 

As at 31/12/2020

2,698

83

 

Additions- internally generated

154

-

 

As at 30/06/2021

2,852

83

 

Additions - internally generated

159

0

 

As at 31/12/2021

3,011

83

 

Additions

282

-

 

As at 30/06/2022

3,293

83

 

 




 

Accumulated amortisation and impairment

 

 

 





 

As at 31/12/2020

1,782

-

 

Charge for the period

278

-

 

As at 30/06/2021

2,060

-

Charge for the period

226

-

 

As at 31/12/2021

2,286

 

 

Charge for the period

258

-

 

As at 30/06/2022

2,544

14

-

 

 




 

Carrying amount

 

 

 

As at 31/12/2020

916

83

 

As at 30/06/2021

792

83

 

As at 31/12/2021

725

83

 

As at 30/06/2022

749

83

 

 

 

 

 

 

 

 

AQUIS EXCHANGE PLC

NOTES TO THE FINANCIAL STATEMENTS (continued)

 

8.     Property, plant and equipment


Fixtures, fittings and equipment

 

Computer Equipment

 

Right of Use Asset

 

Total

 

£'000

 

£'000

 

£'000

 

£'000

Cost

 







As at 31/12/2020

252


2,211


1,444


3,907

Additions & disposals

-


163


-


163

As at 30/06/2021

252


2,374


1,444


4,070

Additions & disposals

72


15


2,795


2,882

As at 31/12/2021

324


2,389


4,329


6,952

Additions & disposals

168


312


-


480

As at 30/06/2022

492

 

2,701

 

4,239

 

7,432

 








Accumulated depreciation and impairment

 







As at 31/12/2020

178


1,804


346


2,328

Charge for the period

25


142


87


254

As at 30/06/2021

203


1,946


433


2,582

Charge for the period

27


129


68


224

As at 31/12/2021

230


2,075


501


2,806

Charge for the period

38


152


173


363

As at 30/06/2022

268

 

2,227

 

674

 

3,169

 








Carrying amount

 







As at 31/12/2020

74


407


1,098


1,579

As at 30/06/2021

49


428


1,011


1,488

As at 31/12/2021

94


314


3,738


4,146

As at 30/06/2022

224

 

474

 

3,565

 

4,263

 

 

 

 

 

 

AQUIS EXCHANGE PLC

NOTES TO THE FINANCIAL STATEMENTS (continued)

 

9.     Trade and other receivables


Current

 

As at 30/06/2022


As at 31/12/2021


As at 30/06/2021

 

£'000

 

£'000

 

£'000

Trade receivables net of impairment

2,096


2,997


2,918

Prepayments

683


433


598

Other receivables

7


339


7


2,786

 

3,769

 

3,523

 







Non-Current

 

As at 30/06/2022


As at 31/12/2021


As at 30/06/2021

 

£'000

 

£'000

 

£'000

Trade receivables net of impairment

4,079


2,416


690

Other receivables

635


329


225


4,714

 

2,745

 

915

 

Trade receivables are stated net of any credit impairment provision as set out previously in Note 3 in accordance with IFRS 9, as illustrated below:

 


As at 30/06/2022


As at 31/12/2021


As at 30/06/2021

 

 

£'000

 

£'000

 

£'000

Gross trade receivables

7,311


6,940


3,957

Expected credit losses on contract assets

(1,055)


(1,527)


(349)

Provisions against trade receivables

(81)

 

-


-

Trade receivables net of impairment

6,175

 

5,413

 

3,608

 

Impairment includes the expected credit loss on licencing contract assets stated in Note 4.

AQUIS EXCHANGE PLC

NOTES TO THE FINANCIAL STATEMENTS (continued)

 

10.   Deferred tax asset

A deferred tax asset was recognised in the year ended 31 December 2020, due to the Group becoming profitable for the first time. The Group is expected to continue to be profitable in future years, with the value of the deferred tax asset to be reassessed annually at year end. 


As at 30/06/2022


As at 31/12/2021


As at 30/06/2021

 

£'000

 

£'000

 

£'000

Deferred tax asset

1,292


1,292


204

 

11.   Trade and other payables


As at 30/06/2022


As at 31/12/2021


As at 30/06/2021

 


 


Trade payables

499


171


264



Accruals

1,048


1,811


1,028



Social security and other taxation

782


507


190



Deferred revenue

1,604


883


935



Short term lease liabilities

435


208


-



Other payables

 

85


203


375




4,453

 

3,783

 

2,792







 

12.   Called up share capital

 


As at 30/06/2022


As at 31/12/2021


As at 30/06/2021

 

£'000

 

£'000

 

£'000

Ordinary share capital

 





Issued and fully paid

 





27,149,559 Ordinary shares of 10p each

2,751


2,717


2,717

Issue of new shares following exercise of 323,267 EMI share options

-


-


32

Issue of new shares following exercise of 20,137 EMI share options

-


34


-

Ordinary share capital

2,751

 

2,751

 

2,749

 

 

 

AQUIS EXCHANGE PLC

NOTES TO THE FINANCIAL STATEMENTS (continued)

 

13.   Share premium account


As at 30/06/2022


As at 31/12/2021


As at 30/06/2021

 

£'000

 

£'000

 

£'000

Share premium






At beginning of year

11,771


10,892


10,892

Issue of new shares following exercise of 323,267 EMI share options

-


-


846

Issue of new shares following exercise of 20,137 EMI share options

-


879


-

Issue of new shares following exercise of 2,666 EMI share options

9


-


-

Share premium

11,780

 

11,771

 

11,738

 

14.   Other Reserves


£'000

 


As at 31/12/2020

761

Share-based payment expense for the 6-month period ended 30/06/2021

294

As at 31/06/2021

1,055

Share-based payment expense for the 6-month period ended 31/12/2021

63

As at 31/12/2021

1,118

Share-based payment expense for the 6-month period ended 30/06/2022

742

As at 30/06/2022

1,860

 

The reserves relating to share-based payments reflects the estimated value of the approved employee share option schemes, which include the EMI, CSOP, PPO and Restricted Share options. The valuation of the options granted is estimated using a US binomial or Black Scholes model. Also included in the share-based payment reserve are the treasury shares purchased by the Trust under the Share Incentive Plan.

 

 

 

 

 

 

 

 

AQUIS EXCHANGE PLC

NOTES TO THE FINANCIAL STATEMENTS (continued)

 

15.   Retained earnings


£'000

 


As at 31/12/2020

1,127

Profit for the 6-month period ended 30/06/2021

1,009

As at 31/06/2021

2,136

Profit for the 6-month period ended 30/12/2021

3,302

As at 31/12/2021

5,438

Profit for the 6-month period ended 30/06/2022

699

As at 30/06/2022

6,137

16.   Treasury shares

Treasury shares are purchased by a Trust under the Employee Share Plans. The Trust is consolidated within the Group financial statements and the value of the shares held at the balance sheet date is shown below.


As at 30/06/2022


As at 31/12/2021


As at 30/06/2021

 

£'000

 

£'000

 

£'000

Share premium






At beginning of period

1,527


561


490

Purchase of treasury shares

1,474


966


71

Treasury shares at close of period

3,001

 

1,527

 

561

 

17.   Foreign currency translation reserve

The translation of the European subsidiary into the functional currency of the group results in foreign exchange differences that have been recognised in Other Comprehensive Income ('OCI') for the group which have been accumulated in a separate component of equity as illustrated below.


6 months ended 30/06/2022

 

Year ended 31/12/2021

 

6 months ended 30/06/2021

 

£'000

 

£'000

 

£'000

At the beginning of the year/period

78


4


1

Foreign exchange differences on translation of foreign operations recognised in OCI

(42)


74


3

At the end of the year/period

36

 

78

 

4

 

 

 

 

AQUIS EXCHANGE PLC

NOTES TO THE FINANCIAL STATEMENTS (continued)

 

18.   IFRS 16 Leases

 

 







The impact on the Groups assets and liabilities, and the related effects on profit and loss, of the Groups leasing activities

(the Group as a lessee) are detailed below.









Right of Use Asset

 















Property


£'000

Carrying amount at 1 January 2021

1,098

Depreciation for the period

(87)

Carrying amount at 30 June 2021

1,011

Depreciation for the period

(67)

Additions

3,758

Disposals

   (964)

Carrying amount at 31 December 2021

3,738

Depreciation for the period

(173)

Carrying amount at 30 June 2022

3,565

Of which are:


Current

341

Non-current

3,224


3,565


















 

Rent deposit asset

 

 

 


Rent deposit asset


£'000

Carrying amount at 1 January 2021

229

Finance income on rent deposit asset for the period

3

Carrying amount at 30 June 2021

232

Finance income on rent deposit asset for the period

6

Additions

374

Carrying amount at 31 December 2021

612

Finance income on rent deposit asset for the period

22

Carrying amount at 30 June 2022

634

Of which are:


Current

284

Non-current

350


634









 

AQUIS EXCHANGE PLC

NOTES TO THE FINANCIAL STATEMENTS (continued)

 

Lease liability

 















Lease liability


£'000

Carrying amount at 1 January 2021

1,190

Finance expense on lease liability for the period

18

Lease payments made during the period

(116)

Carrying amount at 30 June 2021

1,092

Finance expense on lease liability for the period

17

Lease payments made during the period

(114)

Reduction in assumed lease liability

(926)

Additions

3,563

Carrying amount at 31 December 2021

3,631

Finance expense on lease liability for the period

57

Lease payments made during the period

(39)

Carrying amount at 30 June 2022

3,649

Of which are:


Current

435

Non-current

3,214











 

 

Net finance expense on leases

 





 


6 months ended 30/06/2022

Year ended 31/12/2021

6 months ended 30/06/2021

 

£'000

£'000

£'000

Finance expense on lease liability

57

35

18

Finance income on rent deposit asset

(22)

(9)

(3)

Net finance expense relating to leases

35

26

15

 

 

The finance income and finance expense arising from the Groups leasing activities as a lessee have been shown net where applicable

 as is permitted by IAS 32 where criteria for offsetting have been met.









Amounts recognised in profit and loss

 





 


6 months ended 30/06/2022

Year ended 31/12/2021

6 months ended 30/06/2021

 

£'000

£'000

£'000

Depreciation expense on right-of-use assets

(173)

(149)

(87)

Finance expense on lease liability

(57)

(35)

(18)

Finance income on rent deposit asset

22

9

3

Net impact of leases on profit or loss

(208)

(175)

(102)

 

 

 








AQUIS EXCHANGE PLC

NOTES TO THE FINANCIAL STATEMENTS (continued)

The total cash outflow for leases amounted to £39k in the 6 months to 30th June 2022.

 

19.   Cash generated from operations


6 months ended 30/06/2022

 

Year ended 31/12/2021

 

6 months ended 30/06/2021

 

 

£'000

 

£'000

 

£'000

 






Profit after tax

699


4,311


1,008







Adjustments for:

 





Deferred tax

-


(1,089)


-

Investment revenue

(4)


-


-

Amortisation and impairment of intangible assets

264


506


278

Depreciation of property, plant and equipment

369


519


254

Equity settled share-based payment expense

289


572


294

Other (gains)/losses

(26)


325


39







Movement in working capital:

 











Increase in trade and other receivables

(986)


(2,750)


(674)

Increase in trade and other payables

461


764


16







Cash generated/ (absorbed) by operations

1,066

 

3,158

 

1,215

 

 

 

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