28th May 2020 14:13
(Alliance News) - i-nexus Global PLC on Thursday said first half pretax loss widened on flat revenue and higher costs.
Shares in the strategy execution software provider were trading 22% lower at 4.49 pence each on Thursday afternoon in London.
For the six-month period ended March 31, i-nexus posted flat revenue of GBP2.3 million. Pretax loss was GBP2.2 million, widened from GBP1.9 million.
While revenue from recurring contracted software subscriptions increased by 7% to GBP2.0 million, income from professional services fell to GBP240,000 from GBP410,000 due to lower new customer deployments. Administrative expenses increased to GBP3.8 million from GBP3.6 million.
Gross margin in the year was 73%, down from 75%.
The company said that to preserve cash, it implemented a restructuring programme in January which has resulted in a reduction in 20% of staff and a 15% reduction in overheads. It said that it also implemented further costs cuts in April - including furloughing employees - which has led to it currently operating at a profit & loss account break even position.
i-nexus highlighted that while its funding will be adequate for the rest of its current financial year, the provision of additional capital will provide it with greater security in the longer-term.
"i-nexus' continuing viability in the longer term will depend on two factors: securing new sales to existing and potential customers, the timing of which cannot be forecast with any certainty; and our ability to continue to align our cost base with our revenues as the economy emerges from lockdown, which presents additional challenges because of the irregular profile of our cash receipts," it said.
"Your board is therefore mindful that access to additional capital resources would provide i-nexus with greater security and allow flexibility to develop and execute its medium term recovery and growth plan. As a result, alongside preparing an additional cost reduction plan that could be implemented, if required, the board is in the early stages of reviewing strategic options to introduce fresh capital to the business," the company added.
As at Wednesday, i-nexus had cash of GBP290,000.
By Ife Taiwo; [email protected]
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