Final Results
OTAQ, the marine technology products and solutions group for the global aquaculture and offshore oil and gas industries, announces its Final Results for the year ended 31 March 2021.
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Financial Highlights
- 18.5% increase in revenue to £4.05m (FY2020: £3.42m)
- 17.3% increase in gross profit to £2.30m (FY2020: £1.96m)
- 16.2% increase in adjusted EBITDA to £524,000 (FY2020: £451,000)
- Cash balances of £3.1m following drawdown of a five-year £2m CBILS facility; net cash of £627,000 (FY2020: £2.86m)
Operating Highlights
- Achieved strong revenue and gross profit growth across the business
- £0.3m acquisition of ROS Technology Limited's trade and assets
- adding revenue generating contracts and further enhancing OTAQ's aquaculture R&D capability
- Strategic investment of 15% in Minnowtech LLC
- Focused on broadening reach through new product development including the live plankton analysis system for detecting algal blooms, in partnership with Blue Lion Labs LLC, and entering the shrimp biomass detection market through the investment in Minnowtech LLC
Alex Hambro, Non-Executive Chairman of OTAQ plc, commented: "Despite the general market backdrop and challenges, this was still an extremely productive period for the Group with positive movement across all of our key financial metrics. Importantly we continued to position ourselves for future growth, having invested in broadening our product suite and reach.
"We remain excited by the growth potential and new products that we are developing as we focus on increasing our market share as well as diversifying our geographic reach and revenue streams. We are building a strong portfolio of innovative aquaculture products focused on reducing production risks as well as increasing yields and sustainability, and are confident that the long-term market fundamentals remain strong. We are also well funded to continue investing in our product base and to consider any further acquisitions we view as a good fit."
Chairman’s Statement
It is with great pleasure that I present my second Chairman's Statement of OTAQ plc and my first after a full year of operating as OTAQ plc following our listing on the Main Market of the London Stock Exchange on 31 March 2020.
Strategy
The strategy of the Group is to build a business of significance within the global aquaculture industry focused on reducing production risks for salmon producers and farmers of other species by helping them effectively and sustainably manage the environmental challenges to their operations. Over time, the Group intends to deploy a range of products designed to meet these needs that are based on a common infrastructure and a cloud-based information system. The strategy is to design, develop, install and support these systems on an Infrastructure as a Service ('IaaS') basis on long-term rental contracts and to continue to diversify the Group's income stream generators.
The Group's core aquaculture product, Sealfence, significantly improves yields for the salmon farming industry by reducing the frequency of predator attacks using acoustic technology. Sealfence currently accounts for the majority of Group revenues with the combination of long-term rental contracts and recurring monthly purchase orders underpinning strong earnings visibility. However, during the last 12 months the number of Sealfence units deployed has declined 33% from 1,156 to 774. The primary reason for this anomalous decline was Marine Scotland's instigation of an overarching environmental review during 2020 into the use of acoustic deterrent devices (ADDs) in the marine environment. This review, which we expect to conclude in early 2022, has led certain customers in Scotland to voluntarily withdraw ADDs from their salmon farms pending the outcome of Marine Scotland's findings - thereby suffering a consequential increase in stock losses from predation and a lamentable deterioration in fish welfare. We are working closely with Marine Scotland to provide them with the necessary scientific studies and data that demonstrates the benign impact of ADDs on the surrounding marine fauna and fully expect in the fullness of time that ADDs will be restored to their position as a pre-eminent sustainable deterrent to the predation of fish from salmon farms in Scottish waters. In the meantime, our ADDs are being deployed in increasing numbers in Chile, notwithstanding the ongoing Covid biosecurity restrictions that are in place. The number of operational ADDs in that market has increased from 142 as at April 2020 to 264 at the end of June 2021 and several large-scale trials are currently underway utilising our technology. The Chilean aquaculture market is substantial and estimated to be over three times larger than the Scottish market where we are currently most active. We look forward to further growth of our ADDs in Chile and other geographic markets where similar trials are currently underway and the regulatory framework is more settled.
In addition to our acoustic deterrence technology, the Group has been busy over the past 12 months developing adjacent technologies that will broaden our reach into the global aquaculture sector. Specifically, we have advanced the shrimp biomass measurement technology through our strategic partnership with Minnowtech and expect to be able to commence commercial sales in early 2022. Likewise, through a collaboration with Blue Lion Labs in Canada, we have accelerated the development of our phytoplankton detection technology and expect to be able to demonstrate its effectiveness in the first half of 2022. Phytoplankton, or "algal bloom", is a major disease challenge for the aquaculture industry generally and it is estimated the global aquaculture industry suffers $3.4 billion in damage and losses annually due to organisms such as algal blooms and harmful phytoplankton. Early detection of this problem should allow farmers to deploy their defence systems early enough to markedly reduce the losses and improve overall fish welfare.
Other products in the Group's portfolio include a range of sub-sea cameras, laser measuring devices, leak detection systems and high integrity electrical connectors for use in the offshore renewables and oil & gas markets, which form the Group's Offshore and Connectors divisions. The technologies being developed and employed in these divisions have potentially valuable applications in the aquaculture division that we are now starting to explore. Covid-19 had a material impact on the offshore oil and gas sector during the year under review and this downturn in the market impacted Group revenues derived from these product lines. However, it appears that activity has recently begun to improve, albeit from relatively subdued levels.
The Group will continue to look to acquire small and medium-sized marine technology companies and to finance any acquisition, ideally, through existing cash resources or bank borrowings. We are highly selective in acquiring businesses with either sustainable profits or with nascent technology that can be applied to our marine-based systems to create a future profitable revenue stream. It is with this approach in mind that we were able to acquire the trade and assets of ROS Technology in November 2020 for £0.3m which is a small electronics and design business focused on tracking technology that we expect to deploy in our aquaculture division.
Our team
The year has been especially challenging for the team with the continuing Covid-19 pandemic and OTAQ, like all companies, has faced restrictions in its operations and business development activities. However, the team have faced the challenge robustly and have continued to ensure our customers' requirements are met whilst driving forward the Group's strategies.
I would like to welcome Malcolm Pye to the board of directors who brings to the Board considerable experience and expertise in both listed companies and the global aquaculture industry. We are fortunate to be able to draw on his considerable technical and commercial knowledge of the sector.
The executive team and all employees within the Group worked especially hard against the restrictions imposed by the Covid-19 pandemic in 2020 and 2021 to produce these results. The Board remains grateful to all our colleagues for their efforts that have delivered a promising performance and in particular their flexibility in coping with the difficult working conditions continuing to prevail. We look forward to a more open and flexible world, post Covid, that will allow us to resume the deployment of our technologies in our varied and dispersed geographical markets.
Alex Hambro
Chairman
19 July 2021
Chief Executive's Report
Review of the period
The Group achieved encouraging year-on-year growth in revenue and adjusted pre-tax profit, as measured by our preferred measure of adjusted EBITDA (earnings before interest, tax, depreciation, exceptional costs, impairment, share option charges and amortisation).
On 6th November 2020, the Group completed the acquisition of the trade and assets of ROS Technology and welcomed back Dr Peter Robinson, the founder of OTAQ Group and inventor of the Sealfence product. It is expected that the technology acquired, which is focused on location tracking, will be revenue generating in its own right and ultimately be deployed in our aquaculture division.
The Group completed the drawdown of a five-year £2m CBILS facility on 2nd February 2021, which is intended to fund future acquisitions, the purchase of Sealfence units and ongoing working capital requirements.
The growth in the business was achieved through organic growth in the aquaculture businesses to £2,553k from £2,106k with Chile now starting to see strong organic growth. Sales to Europe have also increased to 11.2% of the Group's revenue from 6.4% in 2020 with additional demand for Sealfences being seen in this market. Demand for the Group's Sealfence systems remains robust with Covid-19 disruptions and exchange rates having had little impact on demand so far. In December 2020, Marine Scotland introduced an additional step in the licensing process for fish farms wishing to use Acoustic Deterrent Devices (ADDs). We are currently working with Marine Scotland to provide independently verified data on ADDs.
Revenue
Group revenue for the year ended 31 March 2021 increased from £3.42 million to £4.05 million, an increase of 18.5%. This revenue growth is almost entirely organic with the acquisition of the assets and trade of ROS Technology having an immaterial impact in these results. The investment in Minnowtech LLC has contributed to this growth as well as increased demand in Europe in the Aquaculture division.
The Group continues to grow globally with UK revenue representing 70% of total revenue (2020: 77%). Chile represents 7% (2020: 9%) of total revenue with other European countries account for 11% (2020: 6%) of total revenue and the rest of the world for 12% (2020: 8%) of total revenue.
Profit
The statutory loss for the year of £0.5m was much improved from the £2.6m loss last year and represents the improved performance of the Group. Gross profit was up 17% to £2.30m; driven by the Aquaculture business which delivered gross profit of £1.51m and comprised 66% (2020: 64%) of the Group's total profits.
The Group incurred a number of exceptional charges in the year totalling £0.16m including costs that were principally associated with legal fees for the new share schemes, remuneration committee institution and costs associated with the CBILs loan and investment activities. These costs are either one-off or relate to funding or investment activities.
Dividends
The Board is not recommending a final dividend (2020: £nil).
Trading environment
The long-term fundamentals supporting demand for aquaculture products remain positive. The North Sea oil market in which the Offshore division operates continues to experience a period of reduced activity in line with the reduction in oil prices, although this is now improving following some recovery in the oil price. Market demand for the aquaculture market is being driven primarily by demand for improved salmon farming efficiencies but has been curtailed this year in Scotland due to the regulatory review undertaken.
Despite 30% (FY20: 23%) of the Group's revenue now being generated overseas, exchange rates have only a minor influence on the Group's business: OTAQ's supply costs are largely denominated in Sterling and most of its revenue is invoiced in Sterling with less than 10% of revenue invoiced in different currencies. Currency movements in the year have not had a material impact.
Acquisitions
As a buy-and-build group, the acquisition of new businesses is a key feature of Group strategy. Executing this effectively is key to ensuring that long-term value is generated for shareholders, as we are highly selective in relation to both the acquisition price paid and the long-term quality of any potential addition to our Group.
The industries in which we operate contain a multitude of start-ups and small niches that are potentially complementary to the strategy of the Group. The Group has demonstrated expertise at executing a number of acquisitions and integrating them into the Group successfully and this has continued with the investments in Minnowtech LLC and Blue Lion Labs Ltd.
In March 2021, the Group announced further investment into its strategic alliance with Minnowtech LLC, an innovative aquaculture technology company based in the USA that provides an imaging platform to enable shrimp farmers to measure shrimp abundance to optimise feeding. The Group now owns 15.2% of Minnowtech LLC and expects to supply hardware devices to Minnowtech in 2021.
In May 2021, the Group announced a 10% investment into Blue Lion Labs Limited, a Canadian plankton technology company that will provide detection and analysis of plankton in water. As part of this investment, the Group has signed a cooperation agreement with the aim of commercialising Blue Lion's technology in combination with OTAQ's hardware for use in the salmon farming industry. This will greatly speed up the launch of the Group's plankton analysis software that is being developed by the Group's research and development team.
Innovation
The Group has continued to invest in the development of new products and improvement of existing products. Investment in research and development, capitalised as development costs, amounted to £0.68 million in the year to 31 March 2021 (2020: £0.38 million), equivalent to 17% of Group revenue (2020: 11%). The aim of the Group's research and development team is to deliver the key Biomass measurement and Plankton detection projects for sale in the global aquaculture market and also to deliver new products for sale in the marine technology environment. The team was strengthened this year by the appointment of Chris Hyde to the role of Chief Technology Officer.
Current trading and prospects
The Group was able to continue with many of its operations and activities during the pandemic and delivering this result against such a backdrop has taken considerable effort. Growth opportunities have been restricted due to the travel restrictions in place but we have taken steps to position the Group to take advantage of market opportunities once restrictions are lifted.
We remain convinced by the potential afforded via our core product Sealfence and see scope for renewed growth in 2021. We also expect our relationships with Minnowtech and Blue Lion and the ROS Technology acquisition to begin to deliver financial benefits later in the year.
Despite the ongoing uncertainties resulting from the Covid-19 pandemic, the directors believe that with its robust financial position, the Group's ability to conduct its business model will remain intact.
Phil Newby
Chief Executive
19 July 2021
Chief Financial Officer's Report
The strategy of the Group is to build a business of significance within the aquaculture industry with the key financing requirements being to ensure there is sufficient resource to acquire additional Sealfence units and sufficient resource to fund new product development.
The Group's Key Performance Indicators are aligned to revenue, profits and ensuring sufficient cash flow to deliver future growth. These three measures were below targets in the year to 31 March 2021 which were set prior to the outbreak of the Covid-19 outbreak. However, cash flow has been supplemented by Covid-19 related grants of £0.12m as well as a CBILs (Coronavirus Business Interruption Loan Scheme) loan of £2m which is expected to be sufficient to allow the Group to satisfy its working capital requirements, research and development activities and fund further investments.
In addition, the Group carefully monitors loss time incidents and employee absenteeism and turnover. Loss time incidents were zero (2020: zero) for the year and employee absenteeism and turnover were in line with targets.
Revenue
Group revenue increased by 18.5% to £4.05 million compared with £3.42 million in the prior year with organic growth accounting for all of the growth, specifically growth in Europe in the Aquaculture division and North America following our investment in Minnowtech LLC.
Across our historic three business units, Aquaculture revenues increased by £0.45m to £2.55 million with OTAQ Offshore contributing £0.51m (2020: £0.62m) to revenue, OTAQ Connectors making up the balance of £0.86m (2020: £0.70m). The newly formed fourth division, resulting from the ROS Technology acquisition and relating to new market technological advancements, invoiced £0.13m for services provided to Minnowtech LLC and one other customer.
Profits
The preferred measure of assessing profits for the Group, which most accurately represents the Group's core trading profitability is explained below:
| 2020/21 £'000 | 2019/20 £'000 |
Operating loss | (668) | (898) |
Share option charge | 55 | 559 |
Exceptional costs | 161 | - |
Amortisation of intangible assets | 165 | 163 |
Impairment of goodwill | - | 28 |
IFRS16 depreciation | 118 | 20 |
Depreciation on property, plant and equipment | 693 | 579 |
Adjusted EBITDA* | 524 | 451 |
* Earnings before income, tax, depreciation, share option charges, impairment, exceptional costs and amortisation.
Adjusted EBITDA grew to £0.52 million from £0.45m in 2020. This improvement was driven by the overall revenue growth, good cost control and margins remaining healthy. The adjusted EBITDA profit margin remained at 13%, in line with the adjusted EBITDA operating profit margin of 13% in 2020.
Operating losses decreased to £0.67m from £0.90m with the total comprehensive expense for the year decreasing to £0.53 million (2020: £2.65 million). The statutory loss before tax decreased to £0.73 million compared to £2.76 million in 2020.
Adjusting items
Adjusting items relate to expenditure which does not relate directly to the core activities of the Group and is considered to be one-off in nature or in relation to investing, restructuring or financing activities. The total pre-tax adjusting items recorded in the year to 31 March 2021 were £0.16m. These relate to £0.10m being largely for legal fees relating to share schemes, CBILS loans, investing activities and the remuneration committee institution. The other expenditure relates to £0.02m premises, lease costs and prior year additional audit fees. The balance of £0.04m relates to an additional amount paid in May 2020 in relation to the April 2019 Link Subsea acquisition.
In addition to this were depreciation charges of £0.69 million (2020: £0.58m), intangible amortisation charges of £0.17m (2020: £0.16m) and IFRS16 depreciation charges of £0.12m (2020: £0.02m).
Other operating income
The grant income received of £0.12m related to the HMRC furlough scheme in the UK of £0.02m and a £0.10m grant from the Scottish government relating to the reduced market activity impacting the Offshore division.
Finance costs
Net finance costs totalled £0.06m (2020: £0.2m) and related to the interest charge relating to deferred acquisition payments made in the year, IFRS16 interest charges and invoice discounting charges in OTAQ Chile SpA.
Taxation
As the Group remains in a statutory loss-making position, there is no overall Group tax charge. The Group continues to benefit from research and development tax credits which accounts for the majority of the £0.19m (2020: £0.11m) tax credit in the year.
Earnings and losses per share
Statutory basic losses per share were 1.7p (2020: loss 8.3p) and statutory diluted losses per share totalled 1.7p (2020: loss 8.3p). These are calculated using the weighted average number of shares in existence during the year, being 30,561,747.
Return on Capital
The Group intends to report on capital returns once sustained profitability has been achieved. Whilst capital returns are monitored currently, it is not a key performance or key results measure given the Group's high revenue growth and current statutory loss-making position.
Dividends
No dividends have been paid in the year and no dividend is recommended. As the Group is in a high-growth phase with the associated capital expenditure requirements for Sealfence units, it is expected that cash resources will be retained to deliver the growth as quickly as possible.
Headcount
The Group's number of employees for 2021 stood at 42 (2020: 36). The change in staff numbers during the year was due to the growth of the business.
Share capital and share options
The Group's issued share capital at 31 March totalled 30,763,251 Ordinary shares (2020: 30,548,599). During the year, share options for 177,412 were exercised with a further 37,240 shares issued as part of the employee Share Incentive Plan which came into effect in October 2020.
Share options issued in the year (excluding 1,043,600 options cancelled and re-issued) totalled 750,000 with 2,144,908 (2020: 1,801,912) share options in issue at 31 March 2021. 229,592 share options lapsed in the year due to performance criteria not being met.
Warrants totalling 320,000, included in the above figures, were outstanding on 31 March 2021 (2020: 320,000)
Cashflow and net cash
This year's cash generated from operations totalled £0.17 million (2020: £0.87 million). Total capital expenditure amounted to £0.80 million (2020: £0.50 million).
Year-end cash balances totalled £3.12 million compared to £4.09 million in 2020. The Group finished 2021 with net cash of £0.67 million compared to £2.86 million of net cash at the end of 2020 as reconciled below:
| 2020/21 £'000 | 2019/20 £'000 |
Cash and cash equivalents | 3,120 | 4,087 |
Non-current lease liabilities | (272) | (214) |
Current lease liabilities | (249) | (78) |
Non-current financial liabilities | (1,813) | - |
Current financial liabilities | (187) | (487) |
Current deferred payment for acquisition | (215) | (273) |
Non-current deferred payment for acquisition | - | (232) |
Income tax asset | 286 | 56 |
Net cash | 670 | 2,859 |
As well as the £0.80m spend on fixed assets, with £0.56m being for systems for rental, mainly Sealfence units, £0.68m was spent on research and development activities. £0.23m was paid for the trade and assets of ROS Technology and £0.49m paid for loans made by previous shareholders when the Group was a private limited company.
Cash balances were also improved following the completion of a £2m CBILs facility in February 2020 which is repayable over five years and benefits from the UK government paying for the arrangement fees and the first year of interest costs.
Assets
Total current assets at 31 March 2021 were £5.17m compared to total current assets of £5.87m at 31 March 2020. The key change during the year relates to the decrease in cash balances to £3.12m from £4.09m. Inventories have decreased to £0.90m from £0.97m with trade payables decreasing to £0.71m from £0.96m, with the prior year including substantial listing fees not yet paid. This is also apparent in the reduction in accrued expenses from £0.95m to £0.20m which included significant listing fees in the 2020 figure.
Total liabilities have increased from £3.58m at 31 March 2020 to £4.76m at 31 March 2021 with this increase driven by the £2m CBILs loan which is repayable over five years. IFRS16 lease liabilities recognised in the year amount to a total liability of £0.52m (2020: £0.29m).
Despite the difficulties of the year, the Group's financial position is strong and will adequately support future organic growth and new product development. The CBILs loan is intended to be used for capital and investment purposes.
Summary
The Group will begin the new financial year in a healthy position with the Group's divisions continuing to trade well. Cash resources, structured debt and a strong balance sheet will help to underpin the Group's strategy for growth and allow contingency for possible economic downturns related to the ongoing Covid-19 pandemic or unexpected market changes.
Matt Enright
Chief Financial Officer
19 July 2021
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2021
| Note | Year ended 31 March 2021 | Year ended 31 March 2020 | |
| £'000 | £'000 | ||
| Revenue | 4 | 4,053 | 3,420 |
| Cost of sales | (1,750) | (1,456) | |
| ─────── | ─────── | ||
| Gross profit | 2,303 | 1,964 | |
| Administrative expenses | (3,094) | (2,862) | |
| Other operating income | 5 | 123 | - |
| ─────── | ─────── | ||
| Operating loss | 5 | (668) | (898) |
| Finance income | 7 | - | 2 |
| Finance costs | 7 | (58) | (158) |
| Share-based payment charge as a result of listing | - | (661) | |
| Costs of acquisition | - | (1,045) | |
| ─────── | ─────── | ||
| Loss before taxation | (726) | (2,760) | |
| Taxation | 8 | 192 | 113 |
| ─────── | ─────── | ||
| Loss for the year | (534) | (2,647) | |
| ═══════ | ═══════ | ||
| Attributable to: | |||
| The Group | (534) | (2,636) | |
| Non-controlling interests | 12 | - | (11) |
| ─────── | ─────── | ||
| (534) | (2,647) | ||
| ═══════ | ═══════ | ||
| Other comprehensive income | |||
| Items that will be reclassified subsequently to profit and loss: | |||
| Exchange differences on translation of foreign operations | 21 | - | |
| ─────── | ─────── | ||
| Total comprehensive expense for the year | (513) | (2,647) | |
| ═══════ | ═══════ | ||
| Attributable to: | |||
| The Group | (513) | (2,636) | |
| Non-controlling interests | 12 | - | (11) |
| ─────── | ─────── | ||
| (513) | (2,647) | ||
| ═══════ | ═══════ |
As per note 9, the loss for the year arises from the Group's continuing operations. Losses Per Share were 1.7p (2020: loss 8.3p) and Diluted Losses Per Share were 1.7p (2020: loss 8.3p).
The accompanying notes form an integral part of these consolidated financial statements.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2021
| Note | 31 March 2021 | 31 March 2020 | |
| £'000 | £'000 | ||
| ASSETS | |||
| Non-current assets | |||
| Property, plant and equipment | 10 | 1,548 | 1,442 |
| Right-of-use assets | 11 | 526 | 292 |
| Unlisted investments | 13 | 297 | - |
| Intangible assets | 12 | 2,955 | 2,154 |
| ─────── | ─────── | ||
| Total non-current assets | 5,326 | 3,888 | |
| Current assets | |||
| Trade and other receivables | 15 | 860 | 757 |
| Income tax asset | 16 | 286 | 56 |
| Inventories | 17 | 899 | 972 |
| Cash and cash equivalents | 18 | 3,120 | 4,087 |
| ─────── | ─────── | ||
| Total current assets | 5,165 | 5,872 | |
| ─────── | ─────── | ||
| Total assets | 10,491 | 9,760 | |
| ═══════ | ═══════ | ||
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Share capital | 19 | 4,614 | 4,582 |
| Share premium | 19 | 2,897 | 2,892 |
| Share option reserve | 25 | 473 | 559 |
| Merger relief reserve | 20 | 9,154 | 9,154 |
| Reverse acquisition reserve | 20 | (6,777) | (6,777) |
| Other reserve | 20 | 136 | - |
| Revenue reserve | 20 | (4,764) | (4,230) |
| ─────── | ─────── | ||
| Total equity | 5,733 | 6,180 | |
| Non-current liabilities | |||
| Deferred payment for acquisition | 21 | - | 232 |
| Other creditors | 22 | 38 | - |
| Deferred tax | 23 | 176 | 90 |
| Financial liabilities | 24 | 1,813 | - |
| Lease liabilities | 11 | 272 | 214 |
| ─────── | ─────── | ||
| Total non-current liabilities | 2,299 | 536 | |
| Current liabilities | |||
| Trade and other payables | 22 | 1,808 | 2,206 |
| Financial liabilities | 24 | 187 | 487 |
| Deferred payment for acquisition | 21 | 215 | 273 |
| Lease liabilities | 11 | 249 | 78 |
| ─────── | ─────── | ||
| Total current liabilities | 2,459 | 3,044 | |
| ─────── | ─────── | ||
| Total liabilities | 4,758 | 3,580 | |
| ─────── | ─────── | ||
| Total equity and liabilities | 10,491 | 9,760 | |
| ═══════ | ═══════ |
The accompanying notes form an integral part of these consolidated financial statements.
The financial statements were approved by the board of directors and authorised for issue on 19th July 2021.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2021
| Note | Share capital | Share premium | Share option reserve | Merger relief reserve | Reverse acquisition reserve | Other reserve | Revenue reserve | Equity attributable to owners of the parent company |
Non-controlling interests | Total equity | |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | ||
| Balance at 1 April 2019 | 960 | 1,924 | - | - | 647 | 355 | (1,583) | 2,303 | (6) | 2,297 | |
| Loss and total comprehensive expense for the year | - | - | - | - | - | - | (2,647) | (2,636) | (11) | (2,647) | |
| Group reconstruction | 3,622 | 1,109 | - | 9,154 | (7,424) | 122 | - | 6,572 | 17 | 6,589 | |
| Expenses of share issues | - | (141) | - | - | - | - | (141) | - | (141) | ||
| Grant of share options | 25 | - | - | 559 | - | - | - | - | 559 | - | 559 |
| Deferred shares to be issued for acquisition of OTAQ Connectors Limited (formerly Link Subsea Limited) | - | - | - | - | - | 25 | - | 25 | - | 25 | |
| Unwinding of discount on deferred cost of OTAQ Offshore Limited (formerly MarineSense Limited) acquisition | - | - | - | - | - | 97 | - | 97 | - | 97 | |
| Unwinding of discount on deferred cost of OTAQ Connectors Limited (formerly Link Subsea Limited) | - | - | - | - | - | 4 | - | 4 | - | 4 | |
| Issue of deferred shares | - | - | - | - | - | (603) | - | (603) | - | (603) | |
| ──── | ────── | ────── | ────── | ────── | ────── | ────── | ────── | ────── | ────── | ||
| Balance at 31 March 2020 | 4,582 | 2,892 | 559 | 9,154 | (6,777) | - | (4,230) | 6,180 | - | 6,180 | |
| ════ | ══════ | ══════ | ══════ | ══════ | ══════ | ══════ | ══════ | ══════ | ══════ | ||
| Balance at 1 April 2020 | 4,582 | 2,892 | 559 | 9,154 | (6,777) | - | (4,230) | 6,180 | - | 6,180 | |
| Loss for the year | - | - | - | - | - | - | (534) | (534) | (534) | ||
| Exchange differences on translating foreign operations | - | - | - | - | - | 21 | - | 21 | - | 21 | |
| Total comprehensive expense for the year | - | - | - | - | - | 21 | (534) | (513) | - | (513) | |
| Issues of shares | 6 | 5 | - | - | - | - | - | 11 | - | 11 | |
| Transfer on exercised and cancelled options | 26 | - | (141) | - | - | 115 | - | - | - | - | |
| Charge for share options | 25 | - | - | 55 | - | - | - | - | 55 | - | 55 |
| ──── | ────── | ────── | ────── | ────── | ────── | ────── | ────── | ────── | ────── | ||
| Balance at 31 March 2021 | 4,614 | 2,897 | 473 | 9,154 | (6,777) | 136 | (4,764) | 5,733 | - | 5,733 | |
| ════ | ══════ | ══════ | ══════ | ══════ | ══════ | ══════ | ══════ | ══════ | ══════ |
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2021
| Note | 31 March 2021 | 31 March 2020 | |
| £'000 | £'000 | ||
| Cash flows from operating activities | |||
| Loss before taxation | (726) | (2,760) | |
| Adjustments for non-cash/non-operating items: | |||
| Depreciation of property, plant and equipment | 10 | 693 | 579 |
| Loss on disposal of property, plant and equipment | 10 | 5 | 8 |
| Depreciation of right-of-use assets | 11 | 118 | 20 |
| Gain on write-off of lease liability | 11 | (37) | - |
| Loss on disposal of right-of-use assets | 11 | 25 | - |
| Amortisation of intangible assets | 12 | 165 | 163 |
| Impairment of goodwill | 12 | - | 28 |
| Gain on remeasurement of deferred consideration payable | 21 | (13) | - |
| Re-translation of foreign subsidiaries | 21 | - | |
| Share option charge | 25 | 55 | 559 |
| Share-based payment charge as a result of listing | - | 661 | |
| Non-cash costs of acquisition | - | 1,216 | |
| Finance income | - | (2) | |
| Finance expense | 58 | 158 | |
| ─────── | ─────── | ||
| 364 | 630 | ||
| Changes in working capital: | |||
| Decrease/ (Increase) in inventories | 73 | (375) | |
| Decrease/ (Increase) in trade and other receivables | 47 | (121) | |
| (Decrease)/ Increase in trade and other payables | (360) | 633 | |
| ─────── | ─────── | ||
| Cash from operations | 124 | 767 | |
| Taxation | 48 | 70 | |
| ─────── | ─────── | ||
| Net cash from operating activities | 172 | 837 | |
| ─────── | ─────── | ||
| Cash flows from investing activities | |||
| Purchases of tangible fixed assets | 10 | (804) | (497) |
| Purchases of intangible assets | 12 | (966) | (383) |
| Cash acquired on reverse acquisition | - | 2,601 | |
| Acquisition of subsidiaries | 21 | (329) | (288) |
| Acquisition of unlisted equity securities | 13 | (297) | - |
| Interest received | - | 2 | |
| ─────── | ─────── | ||
| Net cash (used in)/ from investing activities | (2,396) | 1,435 | |
| ─────── | ─────── | ||
| Cash flows from financing activities | |||
| Proceeds from issues of ordinary share capital | - | 1,500 | |
| Expenses of share issues | - | (141) | |
| Shares issued during the year | 11 | - | |
| Proceeds from loans | 2,000 | - | |
| Proceeds from shareholder loan advances | - | 175 | |
| Principal element of lease payments | (111) | (20) | |
| EBT loan | (150) | - | |
| Repayment of development loan | (487) | (8) | |
| Repayment of hire purchase | - | (2) | |
| Interest paid | (6) | (57) | |
| ─────── | ─────── | ||
| Net cash from financing activities | 24 | 1,257 | 1,447 |
| ─────── | ─────── | ||
| Net (decrease)/ increase in cash and cash equivalents | (967) | 3,719 | |
| Cash and cash equivalents at beginning of year | 4,087 | 368 | |
| ─────── | ─────── | ||
| Cash and cash equivalents at end of year | 3,120 | 4,087 | |
| ═══════ | ═══════ |
NOTES TO THE FINANCIAL STATEMENTS
The notes are available in the printable pdf of the results. To download it, please click here
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