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 2020.

Financial Highlights

  • Revenue for the six month period has increased marginally by 3% to £1,716,423 (2019: £1,664,957);
  • Profit before tax is up by 68% to £150,556 (2019: £89,824) and profit after tax up by 11% to £224,825 (2019: £202,018).
  • Overall revenue has held up well and the Company continues to maintain a healthy balance sheet with £1.2 million in cash at the period end and continues to trade profitably.

While the ongoing COVID situation continues to slow down the planned market launches of our new solutions we are persevering with initiating pilots and initial responses from GPs remain positive and enthusiastic. From an operational perspective we are pleased to announce the following important milestones.

Operational Highlights

  • To qualify for NHS GP IT Futures accreditation our hypertension solution (ExpertCare) is classified as a medical device and therefore requires certification within the UK and EU. We are pleased to announce that the Hypertension Expert Solution is now CE accredited.
  • The company also attained ISO accreditation at three ISO standards:
    • ISO27001:2013 - Information Security Management.
    • ISO22301:2019 - Business Continuity Management.
    • ISO20000-1:2018 - Information Technology Service Management.
  • Progress with planned ExpertCare hypertension solution pilots with 37 GP practices having indicated a willingness to participate with a number at varying stages of progress.

As an accredited Supplier to the NHS we are required to migrate our DXS Point of Care solution to a web‑based system. We are currently accelerating this process which, once complete, will provide additional benefits to the business including the ability to scale more rapidly and reduce support and maintenance costs. It will also enable enhanced functionality for our customers thereby moving the solution to new levels and revenue streams. This project is significant and will be completed in a phased approach over the next 12 to 18 months.

David Immelman, Chief Executive Officer, commented:

I am extremely proud of our staff who have continued to mostly work from home while maintaining excellent levels of service for our customers and, when required, pivoting to adapt during these unusual times. We expect our GP practice clients to remain busy with the planned vaccination program over the coming months and hope that the situation should begin to normalise towards March/April 2021.

INTERIM RESULTS to 31 OCTOBER 2020

CONSOLIDATED INCOME STATEMENT

for the six month period ended 31 October 2020

  Unaudited Group 6 Months ended
31 Oct 2020
 
Unaudited
6 Months ended
31 Oct 2019
   

Audited
Year to
30 April 2020
    £     £     £
Turnover 1,716,424   1,664,957   3,279,787
Cost of Sales (177,367)   (169,081)   (318,424)
  _________   _________   _________
Gross Profit 1,539,057   1,495,876   2,961,363
Administrative Costs (1,064,034)   (1,113,939)   (2,085,776)
Depreciation and Amortisation (302,623)   (257,637)   (571,562)
  _________   _________   _________
Operating Profit 172,398   124,300   304,025
Interest received and similar income -   4,397   4,398
Interest payable and similar charges (21,842)   (38,873)   (69,116)
  _________   _________   _________
Profit on ordinary activities before taxation 150,556   89,824   239,307
Tax on profit on ordinary activities 74,269   112,194   189,195
  _________   _________   _________
Profit / (Loss) for the period 224,825   202,018   428,502
  =========   =========   =========
Profit per share          
      -          basic 0.5p   0.6p   1.1p
      -          fully diluted 0.5p   0.5p   1.1p
  =========   =========   =========

STATEMENT of FINANCIAL POSITION

as at 31 October 2020

  Unaudited
Group at
31 Oct 2020
Unaudited
Group at
31 Oct 2019
Audited
Group at
30 April 2020
    £   £   £
Fixed Assets      
Intangible Assets 4,273,801 3,855,025 4,007,411
Tangible Assets 1,680 2,196 1,105
  _________ _________ _________
  4,275,481 3,857,221 4,008,516
  _________ _________ _________
Current assets      
Debtors  Amounts falling due within one year 283,515 360,861 759,405
Cash at bank and in hand 1,207,205 134,249 1,010,645
  _________ _________ _________
  1,490,820 495,110 1,770,050
Creditors: amounts falling due within one year (845,059) (766,043) (1,180,704)
  _________ _________ _________
Net current assets / (liabilities) 645,761 (270,933) 589,346
  _________ _________ _________
       
Total assets less current liabilities 4,921,242 3,586,288 4,597,862
       
Creditors: amounts falling due after more than one year (563,580) (458,071) (376,289)
Deferred income (482,358) (642,619) (571,094)
  _________ _________ _________
  3,875,304 2,485,598 3,650,479
  ========= ========= =========
Capital and reserves      
Called up share capital 159,246 117,419 159,246
Share Premium 2,676,321 1,790,979 2,676,321
Share option reserve 173,808 162,580 173,808
Retained earnings 865,929 414,620 641,104
  _________ _________ _________
Shareholders’ Funds 3,875,304 2,485,598 3,650,479
  ========= ========= =========
       

STATEMENT of CASH FLOWS

Six months ended 31 October 2020

  Unaudited
Group
Six months ended 31 Oct 2020
Unaudited
Group
Six months ended 31 Oct 2019
Audited Group year ended 30 April 2020
    £   £   £
       
Cash flow from operating activities 435,895 259,430 777,709
Interest paid (21,842) (38,873) (69,116)
Interest received - 4,397 4,398
R&D tax credit 186,269 257,194 257,195
  _________ _________ _________
Net Cash flow from operating activities 600,322 482,148 970,186
  _________ _________ _________
       
Cash flow from investing activities      
Payments to acquire intangible fixed assets (568,259) (438,657) (904,503
Payments to acquire tangible fixed assets (1,329) - -
Disposal of tangible fixed assets - - 626
  _________ _________ _________
  (569,588) (438,657) (903,877)
  _________ _________ _________
       
Financing activities      
Net Proceeds on issue of shares - 40,000 978,397
Repayment of long term loans (24,074) (4,484) (89,303)
Advance of long term loans 190,000 - -
  _________ _________ _________
  165,926 35,516 889,094
  _________ _________ _________
       
Net increase in cash and cash equivalent 196,660 79,007 955,403
Cash and Cash equivalents at 1 May 2020 1,010,645 55,242 55,242
  _________ _________ _________
       
Cash and Cash equivalents at 3 October 2020 1,207,305 134,249 1,010,645
  ========= ========= =========
Cash and Cash equivalents consists of:      
Cash at bank and in hand 1,207,305 134,249 1,010,645
  ========= ========= =========

Net Debt Reconciliation

  Current Debt Non Current Debt Cash Total
  £ £ £ £
         
At 30 April 2019 (665,212) (464,951) 55,242 (1,074.921)
Cash flow 244,440 89,203 955,403 1,289,146
Transfer from Current to Non Current Debt 641 (641) - -
  _________ _________ _________ _________
         
At 30 April 2020 (420,131) (376,289) 1,010,645 214,225
Cash flow 360,351 (187,291) 196,660 369,720
Transfer from Current to Non Current Debt - - - -
  _________ _________ _________ _________
At 31 October 2020 (59,780) (563,580) 1,207,305 583,945
  ========= ========= ========= =========

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.