ChallengerX Plc - Interim report for the period ended 31 December 2022
Announcement provided by
ChallengerX plc · CXS29/03/2023 15:58
29 March 2023
ChallengerX plc
(“ChallengerX”, “CX" or the "Company")
Interim report for the period ended 31 December 2022
ChallengerX (AQUIS: CXS), the trading company with principal activity of employing both traditional and non-traditional marketing strategies to rapidly “professionalise” amateur and semi-professional sports clubs around the world announces its unaudited financial results for the period ending 31 December 2022.
This announcement contains inside information for the purposes of the
For further information, please contact:
Enquiries:
ChallengerX plc | ||
John May, Chairman | jmay@city-westminster.com | |
Stuart Adam, CFO | sjadam@city-westminster.com | |
First Sentinel Corporate AQSE Corporate Adviser Brian Stockbridge |
+44 7876 888 011 |
Directors Statement
Introduction
ChallengerX plc (the “Company” or “ChallengerX”) is an investment company quoted on the Aquis Stock Exchange (“AQSE”) Growth Market. The Company was incorporated on 7 June 2021 and its shares were admitted to trading on 23 December 2021.
Activities during the period
The company continued to advance its development of a platform for the promotion and marketing of sports clubs in both a traditional and non-traditional way. Expenditure was particularly heavy in the second three
months to 31 December 2022 in terms of principally programmers costs which, as an accounting policy, are written off as incurred. Further development and related costs will be required as clients are brought on board.
Outlook
The development of the marketing platform will require more expenditure and it is hoped that recoveries of monies sequestrated by the French Authorities from the subsidiary SportsX SAS will assist in this regard. Meanwhile the company is looking at ways to supplement its income by applying itself to other project opportunities and will continue to review its business plan and strategy by looking at transactions in other sectors that could lead to a reverse transaction whilst keeping its establishment overheads as lean as possible.
On 13 February 2023 the Company announced it had raised, through an offer for subscription signed on 10 February 2023,
John May
Chairman
Unaudited Statement of Comprehensive Income
Unaudited 6 months ended 31 December 2022 |
Unaudited 6 months ended 31 December 2021 |
Audited 13 months ended 30 June 2022 |
|
£’000 | £’000 | £’000 | |
Revenue | 4 | - | - |
Administrative expenses | (244) | (206) | (279) |
Impairment of investment in subsidiary | - | - | (839) |
Impairment of loan | - | - | (118) |
Operating loss | (240) | (206) | (1,236) |
Loss before tax | (240) | (206) | (1,236) |
Taxation | - | - | - |
Loss for the period | (240) | (206) | (1,236) |
Total comprehensive loss | (240) | (206) | (1,236) |
(Loss) per share (pence) from continuing operations attributable to owners of the Company – Basic & Diluted |
(0.08) | (0.08) | (0.47) |
Statement of Financial Position
Unaudited 6 months ended 31 December 2022 | Unaudited 6 months ended 31 December 2021 |
Audited 13 months ended 30 June 2022 |
|
£’000 | £’000 | £’000 | |
Assets | |||
Non current assets | |||
Intangible assets - goodwill | - | 18 | - |
Current assets | |||
Trade and other receivables | 8 | 16 | 7 |
Cash and cash equivalents | 92 | 1,385 | 385 |
Total current assets | 100 | 1,401 | 392 |
Total assets | 100 | 1,419 | 392 |
Current liabilities | |||
Trade and other payables | 58 | 158 | 110 |
Total current liabilities | 58 | 158 | 110 |
Net assets | 42 | 1,261 | 282 |
Capital and reserves | |||
Share capital | 288 | 288 | 288 |
Share premium | 1,230 | 1,179 | 1,230 |
Retained earnings | (1,476) | (206) | (1,236) |
Total equity | 42 | 1,261 | 282 |
Statement of Changes in Equity
Share capital | Share premium | Retained earnings | Total |
|
£’000 | £’000 | £’000 | £’000 | |
At 7 June 2021 | - | - | - | - |
Loss for the period | - | - | (206) | (206) |
Total comprehensive income | - | - | (206) | (206) |
Issue of ordinary shares | 288 | 1,179 | - | 1,467 |
Total transaction with owners | 288 | 1,179 | - | 1,467 |
Balance at 31 December 2021 | 288 | 1,179 | (206) | 1,261 |
Loss for the period | - | - | (1,030) | (1,030) |
Total comprehensive income | - | - | (1,030) | (1,030) |
Adjustment to share premium account re share issue expenses | 51 | - | 51 | |
Total transaction with owners | - | 51 | - | 51 |
Balance at 30 June 2022 | 288 | 1,230 | (1,236) | 282 |
Loss for period | - | - | (240) | (240) |
Total comprehensive income | - | - | (240 | (240) |
Balance at 31 December 2022 | 288 | 1,230 | (1,476) | 42 |
Statement of Cash Flows
Unaudited 6 months ended 31 December 2022 |
Unaudited 6 months ended 31 December 2021 |
Audited 13 months ended 30 June 2022 |
|
£’000 | £’000 | £’000 | |
Cash from operating activities | |||
Loss before tax | (240) | (206) | (1,236) |
Adjustments for: | |||
(Increase) in trade and other receivables | (2) | (16) | (7) |
(Decrease)/Increase in trade and other payables | (51) | 158 | 110 |
Net cash used in operating activities | (293) | 142 | (1,133) |
Cash flows from investing activities | |||
Goodwill on acquisition | - | 18 | - |
Net cash from investing activities | - | 18 | - |
Cash flows from financing activities | |||
Proceeds from issue of shares (net of issue costs) | - | 1,467 | 1,518 |
Net cash from financing activities | - | 1,467 | 1,518 |
Net cash flow for the period | (293) | 1,385 | 385 |
Cash and cash equivalents at beginning of period | 385 |
- | - |
Cash and cash equivalents at end of period | 92 | 1,385 | 385 |
Net change in cash and cash equivalents | (293) | 1,385 | 385 |
Cash and cash equivalents comprise: | |||
Cash at bank and in hand | 92 | 1,385 | 385 |
92 | 1,385 | 385 |
Notes to the financial statements
1. General information
ChallengerX plc is a public limited company limited by shares and was first incorporated in
The Company’s shares are traded on the Aquis Stock Exchange Growth Market under symbol CXS and ISIN number
GB00BMD0WG01.
The information for periods ended 31 December 2022 and 31 December 2021 are unaudited
2. Basis of Preparation
The condensed interim financial statements of ChallengerX plc have been prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, “The Financial Reporting Standard applicable in the
These interim financial statements are prepared on a going concern basis, under the historical cost convention, as modified by the recognition of listed investments at fair value.
The financial statements are presented in Pounds Sterling, which is the Company’s presentation and functional
currency.
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgment and complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 3 to the financial statements.
The financial statements have been prepared on the historical cost basis and are presented in £’000 unless
otherwise stated.
3. Going Concern
As at 31 December 2022, the Company had cash of £92,000. As a newly established trading business, the Company has limited operating cash flow and is dependent on the performance of its trading and its cash balances for its working capital requirements. As at the date of this report, the Company had approximately £31,000 cash at bank.
The Directors continue to seek recovery of the sequestered funds held by the Administrator of it’s subsidiary, SportsX, which are believed to amount to approximately £0.6m.
For this reason, it continues to adopt the going concern basis in preparing the financial statements.
4. Earnings per share
Unaudited 6 months ended 31 December 2022 |
Unaudited 6 months ended 31 December 2021 |
Audited 13 months ended 30 June 2022 |
|
£’000 | £’000 | £’000 | |
Earnings | |||
Loss for the period ended | (240) | (206) | (1,236) |
Number of shares | |||
Weighted average number of shares for the purposes of basic and diluted earnings per share | 287,585,000 | 252,405,440 | 264,235,601 |
Earnings per share (pence) | (0.08) | (0.08) | (0.47) |
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