ChallengerX Plc Interim report for the period ended 31 December 2022
29 Mars 2023 - 4:58PM
UK Regulatory
TIDMCXS
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 UK Market
Abuse Regulation and the Directors of the Company are responsible for the
release of this announcement.
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 +44 7876 888 011
AQSE Corporate Adviser Brian
Stockbridge
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, GBP 250,000 (gross) from Aalto Capital
AB ("Aalto"), through the issue of 55,555,556 new ordinary shares (the 'Placing
Shares'). The Company also announced that it had granted Aalto a total of
55,555,556 warrants to subscribe for new ordinary shares of GBP 0.001 each
("Warrants"). The Warrants were exercisable at 0.45 pence per ordinary share,
and for a period of 5 years from the date of issue. Under the offer for
subscription Aalto undertook to send an amount equal to the subscription amount
to the Company on or before 5 p.m. on 13 February 2023 (or such later date as
agreed with the Company). As at the date of this announcement, the Company has
not received any of the subscription monies. The Company is in contact with
Aalto Capital and expects the matter to be resolved in the short term. The
Company will keep the market updated in this regard. The Directors confirm
that this current shortfall in the fundraise does not impact the working
capital position of the Company.
John May
Chairman
Unaudited Statement of Comprehensive Income
Unaudited Unaudited Audited
6 months ended 6 months ended 13 months ended
31 December 2022 31 December 2021 30 June 2022
£'000 £'000 £'000
Revenue 4 - -
Administrative expenses (244) (206) (279)
Impairment of - - (839)
investment in
subsidiary
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 (240) (206) (1,236)
loss
(Loss) per share (0.08) (0.08) (0.47)
(pence) from continuing
operations attributable
to
owners of the Company -
Basic & Diluted
Statement of Financial Position
Unaudited 6 Unaudited 6 Audited
months ended 31 months ended 31 13 months ended 30
December 2022 December 2021 June
2022
£'000 £'000 £'000
Assets
Non current assets
Intangible assets - - 18 -
goodwill
Current assets
Trade and other 8 16 7
receivables
Cash and cash 92 1,385 385
equivalents
Total current assets 100 1,401 392
Total assets 100 1,419 392
Current liabilities
Trade and other 58 158 110
payables
Total current 58 158 110
liabilities
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 Share Retained
capital premium 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 288 1,179 - 1,467
owners
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 51 - 51
account re share issue
expenses
Total transaction with - 51 - 51
owners
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 288 1,230 (1,476) 42
2022
Statement of Cash Flows
Unaudited Unaudited Audited
6 months ended 6 months ended 13 months
31 December 31 December ended 30 June
2022 2021 2022
£'000 £'000 £'000
Cash from operating activities
Loss before tax (240) (206) (1,236)
Adjustments for:
(Increase) in trade and other (2) (16) (7)
receivables
(Decrease)/Increase in trade (51) 158 110
and other payables
Net cash used in operating (293) 142 (1,133)
activities
Cash flows from investing
activities
Goodwill on acquisition - 18 -
Net cash from investing - 18 -
activities
Cash flows from financing
activities
Proceeds from issue of shares - 1,467 1,518
(net of issue costs)
Net cash from financing - 1,467 1,518
activities
Net cash flow for the period (293) 1,385 385
Cash and cash equivalents at - -
beginning of period 385
Cash and cash equivalents at 92 1,385 385
end of period
Net change in cash and cash (293) 1,385 385
equivalents
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 England on 7 June 2021 with company number 13440398. Its
registered office is 16 Great Queen Street, London, WC2B 5DG.
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 United Kingdom and the Republic of Ireland" ("FRS 102") and the
Companies Act 2006. The condensed interim financial statements contained in
this document do not constitute statutory accounts. In the opinion of the
directors, the condensed interim financial statements for this period fairly
presents the financial position, result of operations and cash flows for this
period. The Board of Directors approved this Interim Financial Report on 29th
March 2023.
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 Unaudited Audited
6 months 6 months 13 months
ended ended ended 30
31 December 31 December June
2022 2021 2022
£'000 £'000 £'000
Earnings
Loss for the period ended (240) (206) (1,236)
Number of shares
Weighted average number of shares for 287,585,000 252,405,440 264,235,601
the purposes of basic and diluted
earnings per share
Earnings per share (pence) (0.08) (0.08) (0.47)
END
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