20 March 2024
IQGeo
Group plc
(the "Company" or the
"Group")
Final
results for the year ended 31 December 2023
Record
global growth and product innovation
IQGeo Group plc (AIM: IQG), a
leading developer of geospatial productivity and collaboration
software for telecoms and utility network operators, is pleased to
announce its final audited results for the year ended 31 December
2023.
Operational highlights:
· Substantial progress in all regions with in excess of 500
exit customer logos by the end of the year, a record for the
Group
· Net retention*
for the period of 133% (2022: 108%) on a constant currency
basis
· Significant new logo wins, including a North American tier 1
telecom operator and a North American tier 1 utility, as well as a
significant new tier 1 national utility and broadband operator
in Southern Europe
· Launch of
Integrated Network solution for telecom operators, the Adaptive
Grid solution for electrical operators, and the Insight,
Professional, and Enterprise editions of our Network Manager
products.
· New Malaysian
office opened at the end of 2023 to support expansion in APAC in
2024
· Payment of £1.3m
of deferred consideration, the first earn-out, for the acquisition
of Comsof (acquired August 2022) with the 2nd earn-out
of a further £1.3m due to be paid at the end of March 2024.
These demonstrate the success and integration of the Comsof
acquisition
Financial highlights:
· Headline figures have continued to exceed market
expectations
· Record order
intake of £57.2 million representing 40% growth (2022: £41.0
million)
· Total revenue
growth of 67% to £44.5 million (2022: £26.6 million), with organic
growth** of 64%
· Recurring revenue growth of 48% to £15.7 million (2022: £10.6
million)
· Exit ARR*** of
£21.3 million representing an increase of 41% (2022:
£15.1 million) (50% on a constant currency
basis)
· Gross profit
margin of 60% (2022: 59%)
· Substantial
growth in adjusted EBITDA**** of £6.6 million (2022: £1.9 million)
demonstrating operational leverage
· Breakeven for
the year (2022 loss of £0.9 million)
· Free cash flow
positive (2022: negative) with net cash of £11.0 million as at 31
December (2022: £8.1 million)
Outlook:
The growth in exit ARR*** of 50%
in 2023, combined with a strong pipeline and underpinned by the
record order intake of £57.2 million, gives improved visibility and
confidence as we head into 2024. We have started the new financial
year in line with our expectations and we
remain very confident with the opportunities we have in front of
us, and in our ability to deliver on our targets for 2024 and
beyond.
Gross margins are expected to
improve in coming periods as more high gross margin (85%+)
recurring revenue is recognised. The Group continues to focus
on growing recurring revenue with its "Editions" strategy, which
provides a flexible solution dependent on the demands and budgets
of various sized customers and is proving successful in broadening
the Group's customer base with solutions with lower associated
implementation and service costs.
IQGeo's growth is underpinned by
strong momentum in our two key verticals: Telecoms and Utilities.
Record growth in the rollout of fibre networks is being driven by
commercial broadband operators competing for market share and by
national and local governments seeking to provide universal
broadband services. In parallel, electric utilities are making
major investments to redesign and modernise their grids for
renewable and distributed energy generation and to meet government
targets for net-zero carbon emissions. With these global megatrends
set to continue for many years, they provide a strong long-term
market opportunity for IQGeo's network management
solutions.
Richard Petti, CEO, commented that:
"I am delighted with our performance in 2023. We
have delivered a very strong set of results and at the same time we
have strengthened both our product competitiveness and our
organisation.
On 1 January 2024 we celebrated
our 5-year anniversary as IQGeo over which time we've delivered two
successful acquisitions and dramatically reshaped our software
technology portfolio and global presence. Our Integrated Network
solution is now well established as a market leader in the telecom
industry, and we are building similar momentum in the electric
utility industry for our Adaptive Grid solution.
Our record order intake, strong
growth in exit ARR*** and more than three-fold growth in adjusted
EBITDA**** demonstrate the strength of our proposition, our
position in our chosen markets and the innovation of our
technology. Our future is underpinned by global megatrends that
will deliver long-term sustainable growth in our end markets for
many years to come.
I would like to acknowledge the
hard work and commitment of the IQGeo team that performed so well
in 2023 and we look forward to an exciting
2024."
* Net Retention is Recurring Revenue Net Retention defined as
the growth in recurring revenue from customers at the start of the
financial period to the end of the financial period, net of any
recurring revenue churn
** Organic growth is growth in the underlying IQGeo business,
excluding growth generated as a result of the Comsof
acquisition.
*** Exit ARR is defined as the current go forward run rate of
annually renewable subscription and M&S
agreements.
****Adjusted EBITDA excludes amortisation,
depreciation, share option expense, foreign exchange gains/losses
on intercompany trading balances and non-recurring items and is
reported as it reflects the performance of the
Group
The information contained within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulation (EU) No. 596/2014 which is part of UK law by
virtue of the European Union (withdrawal) Act 2018. Upon the
publication of this announcement, this inside information is now
considered to be in the public domain.
For further information contact:
IQGeo Group plc
+44 1223 606655
Richard Petti
Haywood Chapman
Cavendish Capital Markets Limited
+44 20 7220
0500
Henrik Persson, Seamus Fricker
(Corporate Finance)
Tim Redfern (ECM)
Notes to Editors
About IQGeo
Telecommunication, fiber, and
utility operators are "Building better networks" with IQGeo's
award-winning network management software. The ability to
powerfully model any network requirement, integrate every system
and data source, and support field and office teams with continual
innovation is helping operators create the networks of the future.
Our solutions ensure greater cross-team collaboration and process
efficiency throughout the network lifecycle, from planning and
design to construction, operations, and sales.
Whether it's highly competitive
fiber and 5G broadband rollouts or complex utility grid
modernization projects, customers trust IQGeo's Integrated Network and
Adaptive Grid solutions. We partner with large multinationals and smaller regional
operators to deliver the digital innovation they need to
accelerate time-to-revenue, increase network resilience, improve operational safety,
and deliver ROI.
For more information
visit: www.iqgeo.com/
Copyright © 2024, IQGeo UK
Limited. IQGeo is a registered ® trademark
Chair's statement
I am delighted to
report that 2023 proved to be an extremely successful year for
IQGeo, delivering strong financials, material product developments
and an organisation which is now rapidly accelerating and
broadening its market opportunity.
This year we celebrated five years since the
launch of the IQGeo brand and operational focus. We started this
process with some best in breed products but needed to establish
organisational readiness to truly address the opportunities that we
felt would develop. Over that period, we have remained focussed on
our industry segments, developing our products and people aimed at
addressing the pressing industry needs for Integrated Network and
Adaptive Grid solutions in the telecom and utility sectors. These
industries have continued to grow and demand modern tools to solve
new and existing problems.
Our new customer wins and retention rates
across all our markets from global blue-chip customers to smaller
regional providers remain very high. In addition many of those same
customers continue to expand the number of software users and range
of products and applications. All of which provides positive
testament to our strategy.
We continue to see the markets we serve
demanding modern adaptable tools to support field and back-office
solutions. Customer wins invariably come from those needs and
requirements with many seeing material solution replacements where
those current strategies are no longer capable of meeting either
external or internal requirements. As such our customer profile
typically develops as demand for more users, new products and
functionality spreads across varying aspects of their
business.
Our acquisitions in prior years have been
fully integrated and have continued to allow us to address a wider
market opportunity and provide existing customers with more product
and functionality. Whilst we remain focused on the strong organic
growth opportunity, we will as in previous periods consider
carefully those opportunities that may well be served by market
consolidations.
Results
overview
Strong financial results in year delivered
revenues of £44.5m (2022: £26.6m) a growth of 67%.
Organisation
We have continued to establish the teams
across the globe to make sure we are able to develop customers
relationships with cultural, regional understanding and local/
infield support. In 2023 we saw the expansion of our Asian region
with the opening of an office in Kuala Lumpur. Head count has been
carefully increased in the year to 217 (2022: 180). This expansion
continues to enhance our management team and those skills needed to
understand the challenges our customers and industries
face.
Outlook
We entered 2023 with a strong conviction for
the opportunity we had in front of us, and those opportunities and
convictions remain as we exited the year. Against a backdrop of
fast growing markets opportunities, a talented organisation, and a
set of strong financial attributes, we remain confident that we can
continue to meet growing market demand.
Finally, I would like to thank our customers
who entrust their material operational needs with our products and
people, our shareholders for their continued support, and our team
at IQGeo. The IQGeo team is focused and excited by the role they
play in our customer's journey to build better networks for our
collective future.
Paul Taylor
Chair
19 March 2024
Chief Executive Officer's
statement
Our customers are changing the face of
communication with new fibre networks and completely redesigning
electric grids for a decarbonised future, and in 2023 IQGeo again
demonstrated the strategic role our software plays in these global
megatrends. At the heart of our success is a clear focus on
delivering software solutions that help our telecom and utility
customers manage the entire lifecycle of their networks.
The challenges facing these industries are
enormous, impacting virtually every aspect of their business. Our
Integrated Network and Adaptive Grid solutions are giving broadband
and electric operators the long-term software technology foundation
they need to build and maintain the networks of the
future.
While we continue our ambitious plans for the
enhancement and extension of our software product line, we are
increasingly confident in our technology leadership position and in
the long-term market potential for our telecom and utility sectors.
The combination of our innovative technology, strong market demand,
and the quality of our growing global team has delivered an
excellent set of results for 2023 with an optimistic outlook for
future performance.
Fibre that
delivers digital equity
The market opportunity for our geospatial
network management software remains strong as we continue to see
significant public and private investment. Governments around the
world are investing in fibre deployments to provide digital equity
for their citizens. This is typified by an additional $40 billion
fund for high-speed internet across our primary North American
market with President Joe Biden calling broadband access an
"absolute necessity" and that the US government "Were not going to
leave anyone behind".
The IQGeo software suite which includes our
Comsof Fiber automated planning and design software (2022 Comsof
acquisition) is well positioned to respond to this demand and in
2023 we were pleased to sell our solutions to many new large and
small fibre network operators in North America and markets as
diverse as Egypt, Greece, and Malaysia. The combination of public
and private investment together with compelling commercial
opportunities for broadband operators has accelerated fibre
deployment projects, and we've been able to capitalise on this
market momentum as we expand our customer base globally.
In contrast to fibre network deployments that
are commercially driven, electric grid operators are tightly
regulated and driven by operational and service metrics. While the
speed of the grid transformation may be slower than fibre
deployments, because the addressable market is many times larger
than fibre, the opportunity for our Adaptive Grid software solution
is significant. In response to this opportunity we are actively
investing in our utility software offering and have seen success in
2023 with a solid list of new electric utility customers that view
the IQGeo software as strategic to their grid transformation
objectives.
Measuring our
success
To focus our operational priorities across all
departments within IQGeo and monitor our progress we established
three key business goals when we relaunched IQGeo at the beginning
of 2019. Over the last five years we have consistently monitored
and measured our performance against these targets.
1. Global growth
Revenue growth for 2023 has met our ambitious
targets across all metrics. These results have been achieved
through sales in our traditional North American, EMEA and Japanese
markets. At the end of 2023 we opened a new office in Kuala Lumpur,
Malaysia staffed by IQGeo employees. We will be using this team to
develop new partners in the Asia Pacific (APAC) region to expand
our revenue opportunities in 2024 and beyond.
· 67% growth in
revenue
· Revenue of
£44.5m in 2023 compared to £26.6m in 2022
· 40% growth in
order intake
· Order intake of
£57.2m in 2023 compared to £41.0m in 2022
2. Recurring revenue
With exit ARR growth of 41% in 2023
(50% on a constant currency basis),
the team continued to make significant progress on our goal to
increase predictable recurring revenue. Our SaaS based software
deployments were instrumental to the success of our "land and
expand" business model that was fuelled by strong market demand for
our industry leading software.
· 41% growth in
exit ARR (50% on a constant currency basis)
· Exit ARR of
£21.3m in 2023 compared to £15.1m in 2022
3. Product innovation
2023 was another milestone year for product
innovation at IQGeo as we launched our Integrated Network solution
for telecom operators, the Adaptive Grid solution for electrical
operators, and the Insight, Professional, and Enterprise editions
of our Network Manager products. These new solutions and product
innovations are leading our competition and opening market and
revenue opportunities with new and existing customers. One key
indicator of product management success and customer satisfaction
is our net retention rate, which measures organic growth. This
statistic showed healthy growth for the 2023 financial
year.
· Net retention of
133% in 2023 compared to 108% in 2022
Investing in
the IQGeo customer lifecycle
In the same way that our software solutions
support fibre and electric network lifecycles, the IQGeo management
team is focused on supporting the entire lifecycle of our
customers. We resist the temptation to apply isolated point
solutions for different departmental needs, and instead approach
our business from a holistic perspective that joins up the
different operational areas.
This strategy delivers tremendous benefits for
our customers because it allows them to embark on a multi-year
'digitization journey' with IQGeo which yields continuous
improvements in operational efficiency and safety. Our customer
lifecycle journey begins when they first engage with the IQGeo
story and continues through their software purchase, onboarding,
training, services, and long-term support. Our customer success
teams then become permanent customer partners for identifying the
next opportunity within the organisation. To support this
transition from 'land' to 'expand' based revenue we will continue
making investment in talent, tools, and processes to maximise
customer satisfaction and continued net retention
success.
In 2023 we were pleased to announce that Dr
David Cottingham joined IQGeo as our new Chief Technology Officer
and under David's vision we are enhancing and expanding our SaaS
offering that makes it simple for smaller network operators to
subscribe to our software with little or no service requirements,
accelerating ACV. For those Enterprise customers that require a
more complex solution, our Delivery team now has in place an
impressive professional services portfolio that includes product
training, integration and data services so they can deploy quickly
and our sales team can focus on expanding these customer accounts
with additional user licences and new applications.
Joining up each stage of the customer lifecycle
is accelerating time to ACV with new customers, enabling faster
expansion revenue with existing customers, and delivering a much
better customer experience that supports our goal of long-term
customer retention.
Celebrating 5
years as IQGeo
We launched the IQGeo brand 5 years ago on the
1st of January 2019 after the disposal of the Ubisense
RTLS business. Looking back at the launch of IQGeo, I'm very
pleased with the progress that we have made in terms of the
partnership with our customers and the growth of the IQGeo
team.
We have made bold and innovative moves with our
software, integrated two strategic acquisitions, and established
our company as world-class in the markets we serve. From a
financial perspective we have been successful in executing our
plans to meet revenue, ACV, and profitability targets, and this is
fuelling the growth of our team with industry professionals that
are keen to be part of our success.
When speaking to staff I often compare IQGeo's
journey to NASA's hugely successful Voyager missions which took
advantage of a once in a lifetime alignment of the outer
planets. Transposed to our markets what favours us is
strategic strength both for factors we control (product, technology
and organisation) and, crucially, those we do not (market demand,
market size and competition). I tell staff that having all those
elements align at the same time is a unique opportunity and one
that will continue supporting the IQGeo mission for many years to
come.
Richard
Petti
Chief Executive Officer
19 March
2024
Chief Financial Officer's statement
Principal events and overview
2023 has seen continued
improvement for the Group as we demonstrated significant growth
across key financial metrics. In 2022, we achieved the major
milestone of profitability at the adjusted EBITDA level and in 2023
the level of profitability has increased substantially,
demonstrating good operating leverage, and for the first time we
became cash flow positive. As we continue to be successful in the
growing markets in which we operate, we will continue to grow
revenue and achieve sustained profitability and cash
inflows.
Key performance indicators
On a monthly basis, the Directors
review revenue, operating costs, cash and KPIs to ensure the
continued growth and development of the Group. Primary KPIs
for 2023 and 2022 were as
follows:
KPIs
|
2023
|
2022
|
£'000
|
£000
|
Total revenue
|
44,485
|
26,592
|
Recurring revenue
|
15,749
|
10,610
|
Recurring revenue %
|
35%
|
40%
|
New ARR added in year
|
9,007
|
7,017
|
Exit recurring revenue run
rate
|
21,295
|
15,081
|
Gross margin %
|
60%
|
59%
|
Adjusted EBITDA
|
6,576
|
1,898
|
Profit / (Loss) for the
year
|
4
|
(913)
|
Recurring revenue net
retention
|
133%
|
108%
|
Recurring revenue order
intake
|
25,719
|
21,957
|
Cash, net of debt
|
10,954
|
8,055
|
Revenue
Revenue composition by revenue
stream is summarised in the table below:
Revenue by stream
|
2023
£'000
|
% of total
revenue
|
2022
£'000
|
% of total
revenue
|
Subscription
|
12,728
|
29%
|
8,107
|
31%
|
Maintenance and support
|
3,021
|
7%
|
2,503
|
9%
|
Recurring product revenue
|
15,749
|
35%
|
10,610
|
40%
|
Perpetual Software
|
4,355
|
10%
|
1,138
|
4%
|
Demand Points
|
4,879
|
11%
|
3,357
|
13%
|
Services
|
18,776
|
42%
|
10,527
|
39%
|
Non-recurring product revenue
|
28,010
|
63%
|
15,022
|
56%
|
Total product revenue
|
43,759
|
98%
|
25,632
|
96%
|
Geospatial services from third
party products
|
726
|
2%
|
960
|
4%
|
Total revenue
|
44,485
|
100%
|
26,592
|
100%
|
Total revenue grew by 67% over the
prior year to £44.5 million. Included in this was £8.8 million from
Comsof (2022: £4.8 million) which meant that underlying organic
revenue growth from the existing IQGeo business was 64%, increasing
to £35.7 million.
Annual recurring revenues
Annual recurring revenue or ARR
arises from both subscription-based SaaS sales and also maintenance
and support arrangements from licence sales. During 2023, the Group
has added a record new ARR of £9.0 million, which compares to the
£5.3 million new ARR added in 2022, excluding the £1.7 million
which was added via the acquisition of Comsof, delivering a 70%
increase on a like-for-like basis. In 2022, the growth was
55% over the £3.4 million added during 2021, so demonstrable
continued growth as the Group scales and continues to add new
products.
The exit ARR of the Group as of 31
December 2023 has increased by 41% to £21.3
million (2022: £15.1 million) or by 50% from £14.1
million on a constant currency basis. Although recurring
revenues have increased by 48% to £15.7 million in 2023, recurring
revenue percentage has decreased to 35% of all revenue, compared to
40% in 2022. The main reasons behind this are the growth in
our services revenue, largely due to implementations for enterprise
customers won in 2022 and 2023, and the full year impact of the
Comsof business which had approximately 15% recurring revenue when
we acquired it.
The Group achieved a recurring
revenue net retention figure of 133% (2022: 108%) which we are very
pleased with and indicates the success of the land and expand
strategy and reflects the Group's continued ability to grow
existing customer accounts through new products and increasing the
user count, along with excellent logo retention.
As indicated at the time of the
Comsof acquisition, our plan was to change the business model for
the Comsof business over time to increase the recurring revenue,
selling the automated fibre planning module as a subscription
product. We have been successful with this strategy, signing
£2.2 million of the Comsof product as Annual Recurring Revenue.
As a result of this, and the predicted stabilisation of
services revenues going forwards, we do expect the recurring
revenue percentage to grow over the coming years, bringing
increased visibility of revenues and cash flows as well as
increased margins given the 85% gross margin that our recurring
IQGeo product revenues bring.
Non-recurring revenues
Comsof revenue includes £4.9
million of demand points - revenue from the number of end points
that the fibre planning software is used to plan for
customers. This demand point revenue is similar to our
perpetual licence revenue and is included in our non-recurring
IQGeo product revenue. Sales of perpetual software licences
have increased over the prior year, mainly as a result of increased
sales to utility customers in the North American market who prefer
a perpetual software offering. It is anticipated that this one-off
revenue will continue to fluctuate year on year.
As the number of customers and new
contract wins has increased, our associated service revenues from
initial deployments and expansion orders have also grown by 78%
over the prior year and the Group is heading into 2024 with a
strong backlog of services orders. Labour backlog as at 31 December
2023 was £8.9 million (2022 £5.0m).
Services revenues have scaled
significantly, increasing from £11.5m in 2022 to £19.5m in 2023
(both figures including the services performed on third party
products), a growth of 70%, as we have been implementing enterprise
solutions for the new customers that we have won both in 2022 and
2023. Services revenue should also stabilise in 2024 due to
the launch of our fully hosted out-of-the-box products such as the
Insight and Professional editions of the software, but we know that
the services "engine" allows us to win and implement the levels of
new Annual Recurring Revenue, as well as the one-off licence
revenues that we have won over the last 2 years.
Additionally to revenue derived
from consultancy services on own IP product, revenue is also
derived from consultancy services connected to third party
products. Revenues from third party product services have
declined in the current period and are still expected to decline in
future periods as the Group continues to focus on growing our own
product revenues.
Orders
Bookings of orders increased by
40% to £57.2 million during 2023 (2022: £41.0 million) and the
closing order book relating to revenue to be taken in future years
increased by 50%, from £27.5 million at 31 December 2022 to £41.2
million at 31 December 2023.
Gross profit
Gross profit
|
2023
£'000
|
Gross margin
%
|
2022
£'000
|
Gross margin
%
|
Gross margin
movement
|
Gross profit / gross
margin
|
26,702
|
60%
|
15,665
|
59%
|
+1%
|
Gross margin percentage
for the year was 60%. Despite the growth in
lower margin services from 39% of total revenues in 2022 to 42% in
2023, services margins have increased slightly from 20% in 2022 to
23% in 2023. Recurring revenue and licences and demand points
continue to have gross margins between 85% and 96%
respectively. As services revenues stabilise going forwards
and we build our recurring revenues, we would expect gross margins
to continue to grow in future years.
Operating expenses and adjusted EBITDA
Operating expenses
were £26.2 million (2022: £17.2 million) and are
summarised as follows:
|
2023
|
2022
|
|
£'000
|
£'000
|
Other operating
expenses
|
20,126
|
13,767
|
Depreciation
|
613
|
447
|
Amortisation
|
3,292
|
2,241
|
Share option expense
|
774
|
303
|
Unrealised foreign exchange (gain)
/ loss on intercompany trading balances
|
290
|
(574)
|
Non-recurring items
|
1,085
|
1,007
|
Total operating expense
|
26,180
|
17,191
|
Other operating expenses of the
Group include sales, product development, marketing and
administration costs, net of costs capitalised.
Other operating costs during the
period have increased with a full year of costs from the Comsof
business that was only included from 22nd August in
2022. In addition, and as the Group continues to scale, we
have continued to grow headcount, recruiting a net new 37 heads
during the year across all geographies and all areas within the
business. As at 31 December 2023, there were 217 employees on
the payroll. Operating costs are anticipated to increase in the
future to drive further revenue growth albeit the Group has
experienced significant operational gearing with Adjusted EBITDA
increasing 247% off revenue growth of 67%.
Non-recurring items in 2023 mostly
relate to a non-cash provision for the previously disclosed
potential tax warranty claim related to the sale of the RTLS
business in 2018. As set out in the 2022 annual report, the
Group has been working with external advisers and the German tax
authorities with regards to their enquiries into that business'
historic tax arrangements. The Group has now been able to estimate
that a payment is more likely than not to be required in around
four years' time, and have made a provision as at 31 December 2023
of £965k in this regard. 2022 non-recurring costs relate to the
Comsof acquisition costs and the costs of integrating the business
with the IQGeo business. The Group are not aware of any other
potential claims under the warranty provisions of this or any other
corporate transaction undertaken by the Group in recent
years.
Adjusted EBITDA excludes
amortisation, depreciation, share option expense, foreign exchange
gains/losses on intercompany trading balances and non-recurring
items and is reported as it reflects the performance of the Group.
Adjusted EBITDA profit in 2023 was £6.6 million (2022: £1.9
million).
The operating profit for the
period was £0.5 million (2022: operating loss of £1.5 million),
£1.6 million profit before non-recurring items (2022: £0.5 million
loss)
EPS and dividends
Adjusted diluted earnings per
share was 4.4 pence (2022: 0.6
pence). Reported basic and diluted earnings per share was 0.0
pence (2022: basic and diluted 1.6 pence loss). The Board believes
that the Group's financial resources provide flexibility and the
resources to make investments to accelerate or promote growth, and
does not feel it appropriate at this time to commence paying
dividends.
Assets
Total assets were £50.1 million
(2022: £41.6 million). Total current assets increased to £27.3
million (2022: £19.8 million).
Total non-current assets were
£22.8 million (2022: £21.8 million). Goodwill decreased to £11.3
million (2022: £11.5 million) due to the foreign exchange
movements. Capitalised development costs at 31 December 2023 were
£5.5 million (2022: £3.7 million) with the increase reflecting the
investment in the IQGeo product suite, offset by the amortisation
charge. No change has been made to the current three-year
amortisation period, due to the fast-moving nature of the
technology.
Liabilities
Total current liabilities
increased to £24.4 million (2022: £16.6 million) which includes an
increase in deferred revenue of £4.9 million as would be expected
in a business that is increasing annual recurring revenue through
subscription-based customer contracts. Current liabilities also
include £1.3 million of contingent consideration in respect of the
Comsof acquisition. We expect to pay this deferred consideration in
March 2024, reflecting the excellent performance of the Comsof
business.
Total non-current liabilities
decreased to £2.9 million (2022: £3.3 million) largely due to the
payment of £1.3 million of contingent consideration for the Comsof
acquisition in April 2023, offset by the £1.0 million warranty
provision recognised in 2023.
Net assets
Net assets increased to £22.8
million (2022: £21.7 million).
Cash and cash flow
Operating cash before working
capital movement was £6.5 million inflow (2022: £0.9 million). Cash
inflow from operating activities after adjusting for working
capital and tax was £9.9 million (2022: £2.5 million). Given
the annual in advance payment profile of our subscription revenues,
and in a company growing at rates the Group is, we would expect
working capital to be a cash inflow.
The Group had investment outflows
of £6.0 million (2022: £8.7 million) including £0.2 million for
tangible assets (2022: £0.2 million) and £4.4 million on
development investments in own products (2022: £2.9 million).
In 2023, approximately 73% of R&D expenditure was
capitalised (2022: 74%). The 2023 investment outflow figures
also include £1.3 million paid in respect of the first earnout and
contingent consideration for the Comsof business. The 2022 figures
include £5.0 million paid for the acquisition of Comsof, net of
£2.5 million cash acquired and £1.0 million on non-recurring costs
related to the acquisition and integration of the Comsof business,
together with £0.6 million of deferred payments in relation to OSPI
acquisition.
Cash outflows from financing
activities were £0.4 million (2022: £3.1 million inflow). The
2023 outflow was due to office leases, offset by proceeds from
share issues on exercise of share options. The 2022 inflow was
primarily due to the fundraise associated with the placing of
shares to assist fund the Comsof acquisition, both completed in
August 2022.
Going concern
As at 31 December 2023, the Group
had £11.0 million of cash (2022: £8.1 million) and no debt.
The Directors have prepared detailed cash flow projections
including sensitivity analysis on key assumptions. The
projections prepared until 30 June 2025 show that the Group will be
able to operate comfortably within the current levels of cash
available and, based on this, the Directors have a reasonable
expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future.
Accordingly, the Group continues to adopt the going concern basis
in preparing its consolidated financial statements.
Haywood Chapman
Chief Financial Officer
19 March
2024
Consolidated income statement
for the year ended 31 December 2023
|
Notes
|
2023
|
2022
|
£'000
|
£'000
|
Revenue
|
5
|
44,485
|
26,592
|
Cost of revenue
|
|
(17,783)
|
(10,927)
|
Gross profit
|
|
26,702
|
15,665
|
Operating expenses
|
|
(26,180)
|
(17,191)
|
Operating profit / (loss)
|
|
522
|
(1,526)
|
Analysed as:
|
|
|
|
Gross profit
|
|
26,702
|
15,665
|
Other operating
expenses
|
|
(20,126)
|
(13,767)
|
Adjusted EBITDA
|
|
6,576
|
1,898
|
Depreciation
|
13,
14
|
(613)
|
(447)
|
Amortisation
|
12
|
(3,292)
|
(2,241)
|
Share option expense
|
|
(774)
|
(303)
|
Unrealised foreign exchange gains
/ (losses) on intercompany trading balances
|
|
(290)
|
574
|
Non-recurring items
|
9
|
(1,085)
|
(1,007)
|
Operating profit / (loss)
|
|
522
|
(1,526)
|
Finance income
|
8
|
15
|
-
|
Finance costs
|
8
|
(480)
|
(288)
|
Profit / (loss) before tax
|
|
57
|
(1,814)
|
Income tax
|
10
|
(53)
|
901
|
Profit / (loss) for the year
|
|
4
|
(913)
|
Basic and diluted earnings /
(loss) per share (pence)
|
11
|
0.0
|
(1.6)
|
Consolidated statement of comprehensive
income
for the year ended 31 December 2023
|
2023
|
2022
|
£'000
|
£'000
|
Profit / (loss) for the year
|
4
|
(913)
|
Other comprehensive income:
|
|
|
Exchange difference on
retranslation of net assets and results of overseas
subsidiaries
|
128
|
417
|
Total comprehensive profit / (loss) for the
year
|
132
|
(496)
|
Consolidated statement of changes in
equity
for the year ended 31 December 2023
|
Ordinary share capital
|
Share
premium
|
Share
based payment reserve
|
Capital
redemption reserve
|
Merger
relief reserve
|
Translation reserve
|
Other
reserves
|
Retained earnings
|
Total
|
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
Balance at 1 January 2022
|
1,150
|
22,507
|
454
|
476
|
959
|
(1,854)
|
238
|
(6,779)
|
17,151
|
Loss for the year
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(913)
|
(913)
|
Exchange difference on
retranslation of net assets and results of overseas
subsidiaries
|
-
|
-
|
-
|
-
|
-
|
417
|
-
|
-
|
417
|
Total comprehensive loss for the year
|
-
|
-
|
-
|
-
|
-
|
417
|
-
|
(913)
|
(496)
|
Exercise of share
options
|
4
|
109
|
(30)
|
-
|
-
|
-
|
-
|
30
|
113
|
Issue of shares - acquisition
(Comsof)
|
16
|
-
|
-
|
-
|
957
|
-
|
-
|
-
|
973
|
Deferred consideration -
(OSPI)
|
3
|
-
|
-
|
-
|
237
|
-
|
-
|
-
|
240
|
Issue of shares - associated
costs
|
-
|
(95)
|
-
|
-
|
-
|
-
|
-
|
-
|
(95)
|
Issue of shares -
fundraise
|
56
|
3,444
|
-
|
-
|
-
|
-
|
-
|
-
|
3,500
|
Lapse of share options
|
-
|
-
|
(93)
|
-
|
-
|
-
|
-
|
93
|
-
|
Equity-settled share-based
payment
|
-
|
-
|
303
|
-
|
-
|
-
|
-
|
-
|
303
|
Transactions with
owners
|
79
|
3,458
|
180
|
-
|
1,194
|
-
|
-
|
123
|
5,034
|
Balance as at 31 December 2022
|
1,229
|
25,965
|
634
|
476
|
2,153
|
(1,437)
|
238
|
(7,569)
|
21,689
|
Profit for the year
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
4
|
4
|
Exchange difference on
retranslation of net assets and results of overseas
subsidiaries
|
-
|
-
|
-
|
-
|
-
|
128
|
-
|
-
|
128
|
Total comprehensive profit for the year
|
-
|
-
|
-
|
-
|
-
|
128
|
-
|
4
|
132
|
Exercise of share
options
|
5
|
168
|
(49)
|
-
|
-
|
-
|
-
|
49
|
173
|
Lapse of share options
|
-
|
-
|
(23)
|
-
|
-
|
-
|
-
|
23
|
-
|
Equity-settled share-based
payment
|
-
|
-
|
774
|
-
|
-
|
-
|
-
|
-
|
774
|
Transactions with
owners
|
5
|
168
|
702
|
-
|
-
|
-
|
-
|
72
|
947
|
Balance as at 31 December 2023
|
1,234
|
26,133
|
1,336
|
476
|
2,153
|
(1,309)
|
238
|
(7,493)
|
22,768
|
Consolidated statement of financial
position
for the year ended 31 December 2023
|
Notes
|
2023
|
2022
|
|
£'000
|
£'000
|
Assets
|
|
|
|
Non-current assets
|
|
|
|
Intangible assets
|
12
|
20,830
|
20,029
|
Property, plant and equipment
|
13
|
382
|
310
|
Right-of-use assets
|
14
|
1,624
|
1,480
|
Total non-current assets
|
|
22,836
|
21,819
|
|
|
|
|
Current assets
|
|
|
|
Trade and other receivables
|
15
|
16,330
|
11,064
|
Corporation tax receivable
|
|
-
|
662
|
Cash and cash equivalents
|
16
|
10,954
|
8,055
|
Total current assets
|
|
27,284
|
19,781
|
Total assets
|
|
50,120
|
41,600
|
|
|
|
|
Liabilities
|
|
|
|
Current liabilities
|
|
|
|
Trade and other payables
|
17
|
(23,806)
|
(16,217)
|
Lease liability
obligations
|
20
|
(629)
|
(417)
|
Total current liabilities
|
|
(24,435)
|
(16,634)
|
|
|
|
|
Non-current liabilities
|
|
|
|
Deferred income tax liabilities
|
10
|
(596)
|
(802)
|
Trade and other payables
|
17
|
-
|
(996)
|
Provisions
|
18
|
(965)
|
-
|
Lease liability obligations
|
20
|
(1,356)
|
(1,479)
|
Total non-current liabilities
|
|
(2,917)
|
(3,277)
|
Total
liabilities
|
|
(27,352)
|
(19,911)
|
Net assets
|
|
22,768
|
21,689
|
|
|
|
|
Equity attributable to owners of the
Company
|
|
|
|
Ordinary share capital
|
21
|
1,234
|
1,229
|
Share premium
|
21
|
26,133
|
25,965
|
Share-based payment reserve
|
|
1,336
|
634
|
Capital redemption reserve
|
|
476
|
476
|
Merger relief reserve
|
|
2,153
|
2,153
|
Translation reserve
|
|
(1,309)
|
(1,437)
|
Other reserves
|
|
238
|
238
|
Retained earnings
|
|
(7,493)
|
(7,569)
|
Equity attributable to shareholders
of the Company
|
|
22,768
|
21,689
|
The financial statements were
approved and authorised for issue by the Board of Directors on 19
March 2024 and signed on its behalf by:
Richard
Petti
Haywood Chapman
Chief Executive
Officer
Chief Financial Officer
IQGeo Group plc
Registered Number:
05589712
Consolidated statement of cash flows
for the year ended 31 December 2023
|
|
2023
|
2022
|
|
Notes
|
£'000
|
£'000
|
Profit / (loss) before tax from operating
activities
|
|
57
|
(1,814)
|
Depreciation
|
13,14
|
613
|
447
|
Amortisation
|
12
|
3,292
|
2,241
|
Unrealised foreign exchange (gain)
/ loss on intercompany trading balances
|
|
290
|
(574)
|
Share-based payment
charge
|
|
774
|
303
|
Finance income
|
8
|
(15)
|
-
|
Finance costs
|
8
|
480
|
288
|
Movement in provision
|
18
|
965
|
-
|
Operating cash flows before working capital
investment
|
|
6,456
|
891
|
Change in receivables
|
|
(4,604)
|
(6,039)
|
Change in payables
|
|
7,589
|
7,051
|
Cash used in operations before
tax
|
|
9,441
|
1,903
|
Net income taxes
received
|
|
507
|
607
|
Net cash flows from operating activities
|
|
9,948
|
2,510
|
Cash flows from investing activities
|
|
|
|
Purchases of property, plant and
equipment
|
13
|
(245)
|
(170)
|
Expenditure on intangible
assets
|
12
|
(4,434)
|
(2,900)
|
Acquisition of subsidiaries, net
of cash acquired
|
6
|
(1,319)
|
(5,613)
|
Interest received
|
|
15
|
-
|
Net cashflows used in investing activities
|
|
(5,983)
|
(8,683)
|
Cash flows from financing activities
|
|
|
|
Payment of lease
liability
|
20
|
(602)
|
(444)
|
Proceeds from the issue of
ordinary share capital on exercise of options
|
|
173
|
103
|
Proceeds from the issue of
ordinary share capital from
fundraising, net of associated costs
|
|
-
|
3,405
|
Net cash flows (used in) / generated from financing
activities
|
|
(429)
|
3,064
|
Net increase / (decrease) in cash and cash
equivalents
|
|
3,536
|
(3,109)
|
Cash and cash equivalents at start
of period
|
|
8,055
|
11,499
|
Exchange difference on cash and
cash equivalents
|
|
(637)
|
(335)
|
Cash and cash equivalents at year end
|
16
|
10,954
|
8,055
|
Notes to the consolidated financial
statements
1 General information
IQGeo Group plc (the "Company")
and its subsidiaries (together, the "Group") delivers geospatial
software solutions that integrate data from any source -
geographic, real-time asset, GPS, location, corporate and external
cloud-based sources - into a live geospatial common operating
picture, empowering all users in the customer's organisation to
access, input and analyse operational intelligence to proactively
manage their networks, respond quickly to emergency events and
effectively manage day-to-day operations.
The Company is a public limited company which
is listed on the Alternative Investment Market (AIM) of the London
Stock Exchange (IQG) and is incorporated and domiciled in the
United Kingdom. The value of IQGeo Group plc shares, as quoted on
the London Stock Exchange at 31 December 2023, was 309.0 pence per
share (31 December 2022: 188.5 pence per share).
The address of its registered office is
Nine Hills Road, Cambridge, CB2 1GE, United
Kingdom.
The Group has its operations in the UK, USA,
Canada, Belgium, Germany, Japan and Malaysia and sells its products
and services in over 40 countries globally. The Group legally
consists of eight subsidiary companies headed by IQGeo Group plc at
31 December 2023 (seven at 1 January 2023).
The consolidated financial statements have
been approved for issue by the Board of Directors on 19 March
2024.
2 New accounting standards
The consolidated financial statements
are prepared in accordance with UK-adopted international
accounting standards in conformity with the requirements of the
Companies Act 2006.
The accounting policies used are the same as
set out in detail in the Annual Report and Accounts 2022 and have
been applied consistently to all periods presented in the financial
statements.
There were no new standards or amendments or
interpretations to existing standards that became effective during
the year that were material to the Group.
No new standards, amendments or
interpretations to existing standards having an impact on the
financial statements that have been published and that are
mandatory for the Group's accounting periods beginning on or before
1 January 2023, or later periods, have been adopted
early.
Standards and
interpretations not yet applied by the Group
The following new standards and
interpretations, which are yet to become mandatory and have not
been applied in the Group's financial statements, are not expected
to have a material impact on the Group's financial
statements.
• Supplier Finance Arrangements (Amendment to
IAS 7 and IFRS 7)
• Lease Liability in a Sale and Leaseback
(Amendment to IFRS 16)
• Classification of Liabilities as Current or
Non-Current (Amendment to IAS 1)
• Amendment - Noncurrent Liabilities with
Covenants (Amendment to IAS 1)
• Lack of Exchangeability (Amendment to IAS
21)
These amendments are not expected
to have a significant impact on the financial statements in the
period of initial application and therefore the disclosures have
not been made.
3 Summary of significant accounting
policies
The principal accounting policies applied in
the preparation of the consolidated financial statements are set
out below. These policies have been consistently applied to all the
years presented, unless otherwise stated.
Basis of preparation
The consolidated financial statements
of IQGeo Group plc are prepared in accordance with UK-adopted
international accounting standards in conformity with the
requirements of the Companies Act 2006 ('IFRS'). The consolidated
financial statements have been prepared under the historical cost
convention. The consolidated financial statements are presented in
GBP and all values are rounded to the nearest thousand pounds
(£'000) except when otherwise indicated.
The preparation of these financial statements
in conformity with IFRS requires the Directors to make certain
critical accounting estimates and judgements that affect the
amounts reported in the financial statements and accompanying
notes. The areas involving a higher degree of judgement or
complexity, or areas where assumptions and estimates are
significant to the consolidated financial statements, are disclosed
in Note 4.
Going concern basis
In determining the basis for preparing the
consolidated financial statements, the Directors are required to
consider whether the Company can continue in operational existence
for the foreseeable future, being a period of not less than twelve
months from the date of the approval of the consolidated financial
statements.
Management prepares detailed cash flow
forecasts which are reviewed by the Board on a regular basis. The
forecasts include assumptions regarding the opportunity funnel from
both existing and new clients, growth plans, risks and mitigating
actions. In particular, operating cash flow and profitability are
highly sensitive to revenue mix and the positive contribution of
continuing growth in software sales whether on a perpetual licence
or subscription basis.
In reaching their going concern conclusion,
the Directors have considered that the Group had cash of £11.0
million as at 31 December 2023 and sufficient working capital to
continue operations. Management have also prepared analysis
including downside scenarios considering the impact of limited
revenue growth and reduced margins. This demonstrates that even in
the event of a significant downturn in performance, cash reserves
are sufficient to continue trading. A reverse stress test scenario
has also been considered, demonstrating that a depletion of all
cash reserves would require an implausible fall in revenue and
margins.
The Group's forecasts and projections to 30
June 2025, taking account of reasonably possible changes in trading
performance, support the conclusion that there is a reasonable
expectation that the Company and the Group have adequate resources
to continue in operational existence for the foreseeable future, a
period of not less than twelve months from the date of this report.
The Group, therefore, continues to adopt the going concern basis in
preparing the consolidated financial statements.
Consolidation
The Group financial statements include the
results, financial position and cash flows of the Company and all
of its subsidiary undertakings. Subsidiary undertakings are those
entities controlled directly or indirectly by the Company. Control
arises when the Company has the power to govern the financial and
operating policies of an entity, uses this power to affect the
returns from that entity and has exposure to variable returns from
its investment in the entity.
Financial statements of the subsidiaries are
prepared for the same reporting year as the Company, using
consistent accounting policies. Businesses acquired or disposed of
during the year are accounted for using acquisition method
principles from, or up to, the date control passed. Intra-group
transactions and balances are eliminated on consolidation. All
subsidiaries use uniform accounting policies for like transactions
and other events and similar circumstances.
Foreign currencies
a. Functional and presentation
currency
The functional currency of each Group entity
is the currency of the primary economic environment in which each
entity operates. The consolidated financial statements are
presented in GBP.
b. Transactions and balances
Foreign currency transactions are translated
into the functional currency of each Group entity using the
exchange rates prevailing at the dates of transactions. Monetary
assets and liabilities denominated in foreign currencies are
translated at rates ruling at the period end date. Such exchange
differences are included in the consolidated income statement
within "operating expenses". Non-monetary items that are measured
in terms of historical cost in a foreign currency are translated
using the exchange rates as at the dates of the initial
transactions.
c. Consolidation
For the purpose of presenting consolidated
financial statements, the results and financial position of all the
Group entities (none of which have the currency of a
hyperinflationary economy) that have a functional currency other
than GBP are translated into GBP as follows:
·
assets and liabilities for each statement of financial
position are translated at the exchange rate at the period end
date;
·
income and expenses for each income statement are translated
at the exchange rate ruling at the time of each period the
transaction occurred; and
·
all resulting exchange differences are recognised in other
comprehensive income.
Business reporting
IFRS 8 requires a "management approach" under
which information in the financial statements is presented on the
same basis as that used for internal management reporting
purposes.
The Group is organised on a global basis. The
Directors believe that the Chief Operating Decision Maker (CODM) is
the Chief Executive Officer of the Group. The CODM and the rest of
the Board are provided with information as a single business unit
to assess its financial performance.
The internal management accounting information
is prepared on an IFRS basis but has non-GAAP "adjusted EBITDA" as
the primary measure of profit and this is reported on the face of
the consolidated income statement.
Revenue recognition
Revenue represents the
consideration that the entity expects to receive for the sales of
goods and services net of discounts and sales taxes. Revenue is
recognised based on the distinct performance obligations under the
relevant customer contract as set out below. Where goods and/or
services are sold in a bundled transaction or on a subscription
basis, the Group allocates the total consideration under the
contract to the different individual elements based on actual
amounts charged by the Group on a standalone basis.
Revenue is recognised at different
points in time, upfront, over time and at points in time, as
described below. Such recognition takes into consideration
the term of the licence granted or services to be provided as much
as the term of any longer agreement that the licencing and services
are provided within. Where there are recognisable points
which require actions from the customer and/or the Company, which
includes the renewal of annual licences within a term contract, the
Company recognises revenue only to the next renewal point to
reflect inherent uncertainties of future revenues and separate
performance obligations. Revenue is recognised either on a
subscription / monthly basis or upfront annually dependant on the
basis of the agreement and services to be provided or upfront for
the term of the licence where there are no separate performance
obligations or renewal points within the customer
agreement.
Recurring IQGeo Product revenue -
subscription
Subscription services, which may
include hosting services, are considered to be a single distinct
performance obligation due to the promises stated within the
contract. Revenue is recognised evenly over the subscription period
as the customer receives the benefits of the subscription
services.
Recurring IQGeo Product revenue -
maintenance and support
Maintenance and support is
recognised on a straight-line basis over the term of the contract,
which is typically one year, reflecting the time over which the
customer receives the benefits of the services. Revenue not
recognised in the consolidated income statement is classified as
deferred revenue on the consolidated statement of financial
position.
Perpetual software
Software is also sold under
perpetual licence agreements. Under these arrangements revenue is
recognised at a point in time, when the software is made available
to the customer for use, provided that all obligations associated
with the sale of the licence have been made fulfilled.
If contracts include performance
obligations which result in software being customised or altered,
the software cannot be considered distinct from the labour service.
Revenue recognition is dependent on the contract terms and
assessment of whether the performance obligation is satisfied over
time. If the conditions of IFRS 15 to recognise revenue over time
are not satisfied, revenue is deferred until the software is
available for customer use, because once software has been
installed by the customer, the Group has no further obligations to
satisfy.
Demand Points revenue (Comsof
products)
Annual licence revenue
For Comsof software products which
are sold within an agreement based on Demand Points and which
contain an annual licence renewal, revenue is recognised annually
upfront, when the software is made available to the customer for
use, provided that all obligations associated with the sale of the
licence have been made fulfilled. Hosting or associated services
within the same agreement are recognised over time, reflecting the
time over which the customer receives the benefits of the services.
This reflects that whilst the contractual term may extend across
multiple annual renewals, there is a trigger at the annual renewal
which if not met could cause the contract to be
terminated.
Term licence revenue
For Comsof software products which
are sold within an agreement based on Demand Points, which is for a
fixed period, but which does not contain an annual licence renewal,
revenue is recognised in full upfront, when the software is made
available to the customer for use, provided that all obligations
associated with the sale of the licence have been made
fulfilled. Hosting or associated services within the same
agreement are recognised over time. This reflects that the customer
has the benefit of the software for the duration of the term
contract.
Services
Services revenue includes
consultancy and training. Services revenue from time and materials
contracts is recognised in the period that the services are
provided on the basis of time worked at agreed contractual rates
and as direct expenses are incurred.
Revenue from fixed price,
long-term customer specific contracts is recognised over time
following assessment of the stage of completion of each assignment
at the period end date compared to the total estimated service to
be provided over the entire contract where the outcome can be
estimated reliably. If a contract outcome cannot be estimated
reliably, revenues are recognised equal to costs incurred, to the
extent that costs are expected to be recovered. An expected loss on
a contract is recognised immediately in the consolidated income
statement.
Timing of payment
Maintenance and support income and
subscription income is invoiced annually in advance at the
commencement of the contract period. Software and demand points are
invoiced on delivery. Services are invoiced either on a time and
deliverables basis monthly in arrears, or on completion of
milestones. Other revenue is invoiced based on the contract terms
in accordance with performance obligations. Our standard payment
terms are 30 days from date of invoice, however management
discretion can be applied for significant contracts.
Contract assets and contract
liabilities
Amounts recoverable on contracts
(contract assets) relate to the Group's right to consideration for
completed performance obligations under the contract prior to
invoicing. Deferred income (contract liabilities) relates to
amounts invoiced in advance of services performed under the
contract.
Employee
benefits
a. Retirement benefits
The Group operates various defined
contribution pension arrangements for its employees.
For defined contribution pension arrangements,
the amount charged to the consolidated income statement represents
the contributions payable in the period. Differences between
contributions payable in the period and contributions actually paid
are shown as either accruals or prepayments in the consolidated
statement of financial position.
b. Share-based payments
The Group issues equity-settled share-based
payments to certain employees. Vesting conditions are continuing
employment. Equity-settled share-based payments are measured at
fair value at the date of grant using an appropriate pricing model.
The fair value is expensed on a straight-line basis over the
vesting period, together with a corresponding increase in equity in
the share-based payment reserve. Non-market vesting conditions
include assumptions about the number of options expected to
vest.
Non-recurring items
Non-recurring items are disclosed separately
in the financial statements where it is necessary to do so to
provide further understanding of the financial performance of the
Group. They are material one-off items of income or expense that
have been shown separately due to the significance of their nature
or amount and do not reflect the ongoing cost base or
revenue-generating ability of the Group.
Adjusted EBITDA
Due to the one-off nature of acquisition and other costs and the
non-cash element of certain charges, the
Directors believe that adjusted EBITDA
provides
shareholders with a more appropriate
representation of the underlying earnings derived
from the Group's business and a more comparable view
of the year-on-year underlying financial performance of the
Group. Adjusted EBITDA
excludes amortisation, depreciation, share option expense, foreign
exchange gains/losses on intercompany trading balances and
non-recurring items.
Interest income and expense
Interest income and expense is included in the
consolidated income statement, using the effective interest method
by reference to the principal outstanding.
Tax
The tax charge or credit comprises current tax
payable and deferred tax:
a. Current tax
The current tax charge represents an estimate
of the amounts payable or receivable to or from tax authorities in
respect of the Group's taxable profits and is based on an
interpretation of existing tax laws. Taxable profit differs from
profit before tax as reported in the consolidated income statement
because it excludes certain items of income and expense that are
taxable or deductible in other years or are never taxable or
deductible. Taxation received is recognised only when it is
probable that the Group is entitled to the asset.
b. Deferred tax
Deferred income taxes are calculated using the
liability method on temporary differences. This involves the
comparison of the carrying amounts of assets and liabilities in the
consolidated financial statements with their respective tax bases.
In addition, tax losses available to be carried forward as well as
other income tax credits to the Group are assessed for recognition
as deferred tax assets. However, deferred tax is not provided on
the initial recognition of goodwill, nor on the initial recognition
of an asset or liability, unless the related transaction is a
business combination or affects tax or accounting
profit.
Deferred tax liabilities are always provided
in full. Deferred tax assets are recognised to the extent that it
is probable that the underlying deductible temporary differences
will be able to be offset against future taxable income. Deferred
tax assets and liabilities are calculated, without discounting, at
tax rates that are expected to apply to their respective period of
realisation, provided they are enacted or substantively enacted at
the reporting date. Deferred tax is recognised as a component of
tax expense in the consolidated income statement, except where it
relates to items charged or credited directly to other
comprehensive income or equity when it is recognised in other
comprehensive income or equity.
During the current and prior year IQGeo UK
Limited has and intends to submit claims for UK Research and
Development tax credit relief ("R&D tax claim") under the HMRC
SME scheme. In 2023 this forms part of the unrecognised deferred
tax asset in the UK.
Business combinations
The Group applies the acquisition method to
account for business combinations. The consideration transferred
for the acquisition of a subsidiary is the fair values of the
assets transferred, the liabilities incurred to the former owners
of the acquiree and the equity interests issued by the Group. The
consideration transferred includes the fair value of any asset or
liability resulting from a contingent consideration arrangement.
Identifiable assets acquired and liabilities and contingent
liabilities assumed in a business combination are measured
initially at their provisional fair values at the acquisition date.
Fair values are reassessed during the measurement period and
updated if required. The Group recognises any non-controlling
interest in the acquiree on an acquisition-by-acquisition basis,
either at fair value or at the non-controlling interest's
proportionate share of the recognised amounts of the acquiree's
identifiable net assets.
If the business combination is achieved in
stages, the acquisition date fair value of the acquirer's
previously held equity interest in the acquiree is remeasured to
fair value at the acquisition date through profit or
loss.
Any contingent consideration to be transferred
by the Group is recognised at fair value at the acquisition date.
Subsequent changes to the fair value of the contingent
consideration that is deemed to be an asset or liability is
recognised in accordance with IFRS 9 in the consolidated income
statement. Contingent consideration that is classified as equity is
not remeasured and its subsequent settlement is accounted for
within equity.
Goodwill
Goodwill is initially measured as the excess
of the aggregate of the consideration transferred and the fair
value of non-controlling interest over the net identifiable assets
acquired and liabilities assumed. If this consideration is lower
than the fair value of the net assets of the subsidiary acquired,
the difference is recognised in profit or loss.
Goodwill arising on an acquisition of a
business is the difference between the fair value of the
consideration paid and the net fair value of the assets and
liabilities acquired. Goodwill is carried at cost less accumulated
impairment losses.
Research and development
Expenditure on research activities is
recognised as an expense in the period in which it is
incurred.
Costs relating to ongoing obligations of
customer contracts are expensed.
Development activities involve a plan or
design for the production of new or substantially improved products
and processes. Development expenditure is only capitalised if all
of the following conditions are met:
·
completion of the intangible asset is technically feasible so
that it will be available for use or sale;
·
the Group intends to complete the intangible asset and use or
sell it;
·
the Group has the ability to use or sell the intangible
asset;
·
the intangible asset will generate probable future economic
benefits. Among other things, this requires that there is a market
for the output from the intangible asset or for the intangible
asset itself, or, if it is to be used internally, the asset will be
used in generating such benefits;
·
there are adequate technical, financial and other resources
to complete the development and to use or sell the intangible
asset; and
·
the expenditure attributable to the intangible asset during
its development can be measured reliably.
Internally generated intangible assets,
consisting mainly of direct labour costs, are amortised on a
straight-line basis over their useful economic lives. Amortisation
is shown within administrative expenses in the consolidated income
statement. The estimated useful lives of current development
projects are three years. Upon completion the assets are subject to
impairment testing if impairment triggers are identified, based on
expected future sales.
Where no internally generated intangible asset
can be recognised, development expenditure is recognised as an
expense in the period in which it is incurred.
Other intangible assets
Intangible assets that are purchased
separately, such as software licences that do not form an integral
part of related hardware, are capitalised at cost and amortised on
a straight-line basis over their useful economic life which is
typically three years.
Customer relationships acquired following a
business combination are amortised on a straight-line basis over
their useful economic life which is ten years.
Brands acquired following a business
combination are amortised on a straight-line basis over their
useful economic life which is two to five years.
Intellectual Property acquired following a
business combination is amortised on a straight-line basis over its
useful economic life which is five years.
Acquired software recognised following a
business combination is amortised on a straight-line basis over
their useful economic life which is three to five years.
Property, plant and equipment
Property, plant and equipment are stated at
cost less accumulated depreciation and any recognised impairment
loss. Depreciation is charged to the consolidated income statement
so as to write off the cost or valuation less estimated residual
values over their expected useful lives on a straight-line basis
over the following periods:
·
Fixtures and fittings and leasehold improvements: three to
ten years, or period of the lease if shorter
·
Computer equipment: three years
Residual values and useful economic lives are
assessed annually. The gain or loss on the disposal or retirement
of an asset is determined as the difference between the sales
proceeds and the carrying amount of the asset and is recognised in
operating expenses.
Leased assets
The Group as a lessee
For any new contracts entered into,
the Group considers whether a contract is, or contains, a lease. A
lease is defined as 'a contract, or part of a contract, that
conveys the right to use an asset (the underlying asset) for a
period of time in excfhange for consideration'. To apply this
definition the Group assesses whether the contract meets three key
evaluations which are whether:
• the contract contains an
identified asset, which is either explicitly identified in the
contract or implicitly specified by being identified at the time
the asset is made available to the Group
• the Group has the right to obtain
substantially all of the economic benefits from use of the
identified asset throughout the period of use, considering its
rights within the defined scope of the contract
• the Group has the right to direct
the use of the identified asset throughout the period of use. The
Group assesses whether it has the right to direct 'how and for what
purpose' the asset is used throughout the period of use
Measurement and recognition of
leases as a lessee
At lease commencement date, the
Group recognises a right-of-use asset and a lease liability on the
consolidated statement of financial position. The right-of-use
asset is measured at cost, which is made up of the initial
measurement of the lease liability, any initial direct costs
incurred by the Group, an estimate of any costs to dismantle and
remove the asset at the end of the lease, and any lease payments
made in advance of the lease commencement date (net of any
incentives received).
The Group depreciates the
right-of-use assets on a straight-line basis from the lease
commencement date to the earlier of the end of the useful life of
the right-of-use asset or the end of the lease term. The Group also
assesses the right-of-use asset for impairment when such indicators
exist.
At the commencement date, the Group
measures the lease liability at the present value of the lease
payments unpaid at that date, discounted using the interest rate
implicit in the lease if that rate is readily available or the
Group's incremental borrowing rate.
Lease payments included in the
measurement of the lease liability are made up of fixed payments
(including in-substance fixed), variable payments based on an index
or rate, amounts expected to be payable under a residual value
guarantee and payments arising from options reasonably certain to
be exercised.
Subsequent to initial measurement,
the liability will be reduced for payments made and increased for
interest. It is remeasured to reflect any reassessment or
modification, or if there are changes in in-substance fixed
payments.
When the lease liability is
remeasured, the corresponding adjustment is reflected in the
right-of-use asset, or profit and loss if the right-of-use asset is
already reduced to zero.
The Group has elected to account
for short-term leases and leases of low-value assets using the
practical expedients. Instead of recognising a right-of-use asset
and lease liability, the payments in relation to these are
recognised as an expense in profit or loss on a straight-line basis
over the lease term.
On the consolidated statement of
financial position, right-of-use assets have been presented as
non-current assets and lease liabilities presented within current
and non-current liabilities.
Impairment of non-financial assets
Assets that have an indefinite useful life -
for example, goodwill - are not subject to amortisation and are
tested at least annually for impairment and whenever there is an
indication that the asset may be impaired. Assets that are subject
to amortisation are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount may not
be recoverable.
An impairment loss is recognised for the
amount by which the asset's carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an asset's fair
value less costs to sell and value in use. For the purposes of
assessing impairment, assets are grouped at the lowest levels for
which there are separately identifiable cash flows (cash-generating
units). Impairment losses are recognised immediately in profit or
loss.
Non-financial assets other than goodwill that
suffered an impairment are reviewed for possible reversal of the
impairment at each reporting date. Where an impairment loss is
reversed, it is reversed to the extent that the increased carrying
amount does not exceed the carrying amount that would have been
determined had no impairment loss been recognised in prior years. A
reversal of an impairment loss is recognised immediately in profit
or loss.
Financial instruments
Recognition and
derecognition
Financial assets and financial liabilities are
recognised when the Group becomes a party to the contractual
provisions of the financial instrument.
Financial assets are derecognised when the
contractual rights to the cash flows from the financial asset
expire, or when the financial asset and substantially all the risks
and rewards are transferred. A financial liability is derecognised
when it is extinguished, discharged, cancelled or
expires.
Classification and initial measurement
of financial assets
Except for those trade receivables that do not
contain a significant financing component and are measured at the
transaction price in accordance with IFRS 15, all financial assets
are initially measured at fair value adjusted for transaction costs
(where applicable).
Financial assets are classified into the
following categories:
• amortised cost;
• fair value through profit or loss (FVTPL);
and
• fair value through other comprehensive
income (FVOCI).
The classification is determined by
both:
• the entity's business model for managing the
financial asset; and
• the contractual cash flow characteristics of
the financial asset.
All income and expenses relating to financial
assets that are recognised in profit or loss are presented within
finance costs, finance income or other financial items, except for
impairment of trade receivables which is presented within other
expenses.
Subsequent measurement of financial
assets
Financial
assets at amortised cost
Financial assets are measured at amortised
cost if the assets meet the following conditions (and are not
designated as FVTPL):
• they are held within a business model whose
objective is to hold the financial assets and collect its
contractual cash flows; and
• the contractual terms of the financial
assets give rise to cash flows that are solely payments of
principal and interest on the principal amount
outstanding.
After initial recognition, these are measured
at amortised cost using the effective interest method. Discounting
is omitted where the effect of discounting is immaterial. The
Group's cash and cash equivalents, trade and most other receivables
fall into this category of financial instruments.
Financial
assets at fair value through profit or loss
(FVTPL)
Financial assets that are held within a
different business model other than 'hold to collect' or 'hold to
collect and sell' are categorised at fair value through profit and
loss. Further, irrespective of business model, financial assets
whose contractual cash flows are not solely payments of principal
and interest are accounted for at FVTPL.
Assets in this category are measured at fair
value with gains or losses recognised in profit or loss. The fair
values of financial assets in this category are determined by
reference to active market transactions or using a valuation
technique where no active market exists.
Trade receivables
Trade receivables are amounts due from
customers for products sold or services performed in the ordinary
course of business. If collection is expected in one year or less,
they are classified as current assets. If not, they are presented
as non-current assets.
The Group makes use of a simplified approach
in accounting for trade and other receivables as well as contract
assets and records the loss allowance as lifetime expected credit
losses. These are the expected shortfalls in contractual cash
flows, considering the potential for default at any point during
the life of the financial instrument. In calculating, the Group
uses its historical experience, external indicators and
forward-looking information to calculate the expected credit losses
using a provision matrix.
The Group assesses impairment of
trade receivables on a collective basis as they possess shared
credit risk characteristics and they have been grouped based on the
days past due.
Classification and measurement of financial
liabilities
The Group's financial liabilities include
borrowings, trade and other payables.
Financial liabilities are initially measured
at fair value, and, where applicable, adjusted for transaction
costs unless the Group designated a financial liability at fair
value through profit or loss.
Subsequently, financial liabilities are
measured at amortised cost using the effective interest method
except for derivatives and financial liabilities designated at
FVTPL, which are carried subsequently at fair value with gains or
losses recognised in the profit or loss.
Trade payables
Trade payables are obligations to pay for
goods or services that have been acquired in the ordinary course of
business from suppliers. Accounts payable are classified as current
liabilities if payment is due within one year or less. If not, they
are presented as non-current liabilities.
Trade payables are recognised initially at
fair value and subsequently measured at amortised cost using the
effective interest method.
Cash and cash equivalents
In the consolidated statement of cash flows,
cash and cash equivalents includes cash in hand, deposits held at
call with banks and other short-term highly liquid investments with
original maturities of three months or less.
Borrowings
Borrowings are recognised initially at fair
value, net of transaction costs incurred. Borrowings are
subsequently carried at amortised cost; any difference between the
proceeds (net of transaction costs) and the redemption value is
recognised in the consolidated income statement over the period of
the borrowings using the effective interest method.
Share capital and share premium
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares
or options are shown in equity as a deduction, net of tax, from the
proceeds. The nominal value of shares issued is classified as share
capital and the amounts paid over the nominal value in respect of
share issues, net of related costs, is classified as share
premium.
Share-based payment reserve
The share-based payment reserve relates to a
cumulative charge made in respect of share options granted by the
Company to the Group's employees under its employee share option
plans.
Capital redemption reserve
The capital redemption reserve relates to the
repurchase and subsequent cancellation of issued ordinary share
capital.
Merger relief reserve
The merger relief reserve relates
to the issue of shares as consideration for acquisitions of direct
or indirect 100% owned subsidiaries within the Group.
Translation reserve
Exchange differences relating to the
translation of the results and net assets of the Group's foreign
operations from their functional currencies to the Group's
presentation currency of GBP, are recognised directly in other
comprehensive income and accumulated in the translation
reserve.
Retained earnings
Retained earnings include all current and
prior period retained profits/losses.
4 Critical accounting judgements and key
sources of estimation and uncertainty
When preparing the financial
statements, management makes a number of judgements, estimates and
assumptions about the recognition and measurement of assets,
liabilities, income and expenses.
Significant management judgements
The following are the judgements
made by management in applying the accounting policies of the Group
that have the most significant effect on the financial
statements.
Capitalisation of development costs
The point at which development costs meet the
criteria for capitalisation is critically dependent on management's
judgement of the point at which technical and commercial
feasibility is demonstrable. The carrying amount of capitalised
development costs at 31 December 2023 is £5.5 million (2022 £3.8
million). After capitalisation, management monitors whether the
recognition requirements continue to be met and whether there are
any indicators that capitalised costs may be impaired.
Revenue recognition
Significant management judgement is applied in
determining the distinct performance obligations included within
contracts involving multiple deliverables. In particular, where
additional services are sold alongside perpetual licence sales,
management must make an assessment if contracts
include performance obligations which would result in software
being customised or altered, prior to reaching a conclusion as to
whether the software can or cannot be considered distinct from the
labour service. Significant judgement is required around the
duration of a licence agreement where the contractual term extends
beyond an annual licence renewal in determining whether revenue
should be recognised over the contractual term or the licence
term. In making this judgement management consider historic
practice of renewal's, contractual termination clauses, interaction
with the licence renewal terms and enforceability of termination
clauses contained within. This includes the certainty over
such revenues given the changing nature of a customer's
requirements through the lifecycle of the products utilisation and
the Group's ability to provide a stack of products that can change
through a customer's journey.
For each identified significant performance
obligation management are required to determine which obligations
meet the criteria to recognise revenue over time. As revenue from
fixed price services agreements is recognised over time, the amount
of revenue recognised in a reporting period depends on the extent
to which the performance obligation has been satisfied. This
requires an estimate of the time and value to deliver the services
to be provided, based on historical experience with similar
contracts. In a similar way, recognising revenue requires the
estimated number of hours required to complete the promised work.
For further detail on the specific nature of revenue streams
recognised by the Group, refer to the revenue recognition section
within Note 3.
Deferred tax
A deferred tax asset is recognised where the
Group considers it probable that future taxable profits will be
available against which the tax credit will be utilised in the
future. This specifically applies to tax losses and to outstanding
vested share options at the statement of financial position date.
In estimating the amount of the deferred tax asset that should be
recognised, the Directors make judgements based on current budgets
and forecasts about the amount of future taxable profits and the
timings of when these will be realised. As at 31 December 2023
deferred tax assets have not been recognised in respect of existing
tax losses and equity-settled share options temporary differences,
because it is not probable that future taxable profits will be
available against which the Group can utilise the
benefits
Estimating uncertainty
The Group makes estimates and assumptions
concerning the future. The resulting accounting estimates will, by
definition, seldom equal the related actual results. The estimates
and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within
the next financial year are addressed below.
Amortisation and impairment of development
costs
Capitalised development costs are amortised
over a three-year period which is management's estimate of the
useful lives of current development projects. In reaching this
conclusion, management have made assumptions in respect of future
customer requirements and developments within the industry. These
estimates have a high level of uncertainty and are matters outside
of management's control.
The Group reviews capitalised development
costs for indicators of impairment annually in accordance with the
accounting policy stated in Note 3. In assessing if an indication
of impairment exists management review sales over the preceding
three years for each product capitalised. For the majority of
products capitalised, these sales support management's assessment
that no indication of impairment exists. Where these sales do not
support this conclusion, such as for new products developed,
management are required to make assumptions of the future cash
flows generated from these software products. This includes
consideration of both the current business pipeline, the expected
conversion of that pipeline and the future cash flows to be
generated through recurring revenue contracts, including the
application of a suitable discount rate.
5 Business information
5.1 Operating segments
Management provides information reported to
the Chief Operating Decision Maker (CODM) for the purpose of
assessing performance and allocating resources. The CODM is the
Chief Executive Officer.
The business delivers software solutions that
integrate data from any source - geographic, real-time asset, GPS,
location, corporate and external cloud-based sources - into a live
geospatial common operating picture, empowering all users in the
customer's organisation to access, input and analyse operational
intelligence to proactively manage their networks, respond quickly
to emergency events and effectively manage day-to-day operations.
These geospatial operations are reported to the CODM as a single
operating segment which includes the operations of Comsof acquired
during the year. Whist the Comsof brand will be retained as
part of the Company's product portfolio, the operations, people,
sales, development, administration and systems have all been fully
integrated into the IQGeo group and amalgamated within the existing
single operating segment.
5.2 Revenue by type
The following table presents the
different revenue streams of the IQGeo Group:
Revenue by
stream
|
2023
£'000
|
% of total
revenue
|
2022
£'000
|
% of total
revenue
|
Subscription
|
12,728
|
29%
|
8,107
|
31%
|
Maintenance and support
|
3,021
|
7%
|
2,503
|
9%
|
Recurring IQGeo product revenue
|
15,749
|
35%
|
10,610
|
40%
|
Perpetual software
|
4,355
|
10%
|
1,138
|
4%
|
Demand points software
|
4,879
|
11%
|
3,357
|
13%
|
Services
|
18,776
|
42%
|
10,527
|
39%
|
Non-recurring IQGeo product revenue
|
28,010
|
63%
|
15,022
|
56%
|
Total IQGeo product revenue
|
43,759
|
98%
|
25,632
|
96%
|
Geospatial services on third party
products
|
726
|
2%
|
960
|
4%
|
Total revenue
|
44,485
|
100%
|
26,592
|
100%
|
5.3 Geographical areas
The Board and management team also review the
revenues on a geographical basis, based around the regions where
the Group has its significant subsidiaries or markets.
The Group's revenue from external customers in
the Group's domicile, the UK, and its major worldwide markets have
been identified on the basis of the customers' geographical
location. Non-current assets are allocated based on their physical
location.
The following table represents the Group's
operational revenue and non-current assets by geographical
region:
|
Revenue
|
Non-current
assets
|
|
2023
|
2022
|
2023
|
2022
|
£'000
|
£'000
|
£'000
|
£'000
|
UK
|
2,626
|
1,133
|
12,089
|
9,755
|
Europe
|
5,404
|
1,983
|
2,539
|
2,920
|
USA
|
29,318
|
17,867
|
7,362
|
8,308
|
Canada
|
3,501
|
2,893
|
3
|
2
|
Japan
|
3,049
|
1,867
|
843
|
891
|
Rest of World
|
587
|
849
|
-
|
-
|
Total
|
44,485
|
26,592
|
22,836
|
21,876
|
5.4 Information about major customers
During 2023, the Group had two
customers who generated revenues of greater than 10% of total
revenue for the group (2022: no customers).
6 Acquisitions
There have been no acquisitions in
2023. On 11th August 2022 the Group
acquired 100% of the equity instruments of Comsof NV ("Comsof"), a business based in Ghent, Belgium,
thereby obtaining control.
Comsof had a wholly owned subsidiary based
in Toronto, Canada,
Comsof Technologies America Ltd. Effective 1 January 2023,
ownership of Comsof Technologies America Ltd was transferred
directly under IQGeo Group plc ownership and amalgamated with
IQGeo's existing Canadian subsidiary IQGeo Solutions Canada
Inc.
Comsof and contribution to the Group
results
The acquisition of Comsof was
concluded on 11th August 2022, with 100% of the share
capital acquired with the total consideration of up to £11.1
million (up to €13.0 million).£2.5 million of cash.
The consideration included up to
£2.4 million (€3.0 million) as contingent consideration based on
the achievement of contract awards to agreed Demand point values
and subsequent collection of cash in settlement of the first year's
invoice values. The first payment was made in April 2023,
and at 31 December 2023, the remaining
contingent consideration was expected to be settled
in March 2024.
The second half of the consideration at 31
December 2023 is included within current liabilities (£1.3
million).
Contingent consideration was discounted on
recognition with £0.3 million recognised as interest expense during
the year 2023 (2022: £0.2 million).
7
Employee information
7.1 Employee numbers
The number of people as at 31 December and the
average monthly number of people employed during the year,
including Executive Directors, was:
|
Actual
number of people as at 31 December
|
Average
monthly number of people in the year
|
By activity
|
2023
|
2022
|
2023
|
2022
|
Number
|
Number
|
Number
|
Number
|
Technical consultants
|
80
|
68
|
75
|
47
|
Sales & marketing
|
65
|
54
|
61
|
44
|
Research &
development
|
50
|
41
|
45
|
29
|
Administration
|
22
|
17
|
20
|
15
|
|
217
|
180
|
200
|
135
|
|
|
|
|
|
By geography
|
2023
|
2022
|
2023
|
2022
|
Number
|
Number
|
Number
|
Number
|
United Kingdom
|
53
|
36
|
43
|
31
|
Europe
|
45
|
43
|
43
|
19
|
North America
|
111
|
95
|
107
|
80
|
Asia
|
8
|
6
|
7
|
5
|
|
217
|
180
|
200
|
135
|
7.2 Employee benefits
The aggregate employee benefit expense,
including Executive Directors, comprised:
|
2023
|
2022
|
£'000
|
£'000
|
Wages and salaries
|
20,931
|
14,434
|
Social security costs
|
2,105
|
1,161
|
Contributions to defined
contribution pension arrangements
|
645
|
433
|
Share-based payments
|
774
|
303
|
Total aggregate employee benefits
|
24,455
|
16,331
|
|
|
| |
8 Finance income and costs
|
2023
|
2022
|
|
£'000
|
£'000
|
Interest income from cash and cash
equivalents
|
15
|
-
|
Finance income
|
15
|
-
|
Interest expense for lease
arrangements
|
(136)
|
(95)
|
Interest expense for contingent
and deferred consideration
|
(344)
|
(193)
|
Finance costs
|
(480)
|
(288)
|
Net finance costs
|
(465)
|
(288)
|
9
Loss before tax: analysis of expenses by nature
9.1 Expenses by nature
The following items have been charged /
(credited) to the consolidated income statement in arriving at a
gain before tax:
|
Notes
|
|
2023
|
|
2022
|
|
£'000
|
|
£'000
|
Amortisation of capitalised
development and software costs
|
12
|
|
2,520
|
|
1,686
|
Amortisation and impairment of
acquired intangible assets
|
12
|
|
772
|
|
555
|
Depreciation of owned property,
plant and equipment
|
13
|
|
163
|
|
99
|
Depreciation of right-of-use
assets
|
14
|
|
450
|
|
348
|
Lease rental charges - land and
buildings
|
20
|
|
602
|
|
444
|
Research & development costs
expensed
|
|
|
1,650
|
|
1,022
|
Net foreign currency
expense
|
|
|
539
|
|
378
|
Unrealised foreign exchange
losses/(gains) on intercompany trading balances
|
|
|
290
|
|
(574)
|
Non-recurring items
expense
|
9.2
|
|
1,085
|
|
1,007
|
9.2 Non-recurring items
|
|
|
2023
|
|
2022
|
|
|
£'000
|
|
£'000
|
Acquisition costs
|
|
|
120
|
|
1,007
|
SPA tax warranty
|
|
|
965
|
|
-
|
Total non-recurring items
|
|
|
1,085
|
|
1,007
|
Acquisition
costs
On 11th August 2022 the
Group acquired Comsof NV. Costs of acquisition and business
integration have been expensed during the year as non-recurring
items.
SPA warranty
On 31 December 2018, the Group
disposed of its RTLS SmartSpace business. The sale agreement
included a number of warranties which would allow the new owners of
the RTLS SmartSpace business to claw back consideration paid,
should additional liabilities crystallise at a later date.
Management have been made aware of a potential tax warranty claim
related to the sale, and following legal advice, believe that it is
more likely than not that payment will be required under the
warranty in around 4 years' time. Management have made a best
estimate of the amount payable including associated costs and
expenses and have discounted this using the Group's weighted
average cost of capital, resulting in a provision as at 31 December
2023 of £965k.
9.3 Auditor's remuneration
During the year, the Group (including its
overseas subsidiaries) obtained the following services from the
Company's auditor and its associates:
|
2023
|
2022
|
£'000
|
£'000
|
Fees payable to the Group's auditor for the
audit of:
|
|
|
Parent company and consolidated financial
statements
|
123
|
129
|
Financial statements of subsidiaries, pursuant
to legislation
|
17
|
17
|
Total audit fees
|
140
|
146
|
Fees payable to the Group's auditor for other
services:
|
|
|
Audit-related assurance services
|
35
|
18
|
Fees payable to the Group's auditor affiliates
for other services:
|
|
|
Tax advisory
|
29
|
28
|
Tax compliance services
|
26
|
12
|
Total non-audit fees
|
90
|
58
|
Total auditor's
remuneration
|
230
|
204
|
The auditor of IQGeo Group plc is Grant Thornton
UK LLP.
10 Income tax
10.1 Income tax recognised in the consolidated
income statement
|
2023
|
2022
|
|
£'000
|
£'000
|
Current tax
|
|
|
Corporation tax
|
95
|
(862)
|
Adjustments in respect of prior
periods
|
164
|
-
|
Total current tax charge / (credit)
|
259
|
(862)
|
Deferred tax
|
|
|
Origination and reversal of timing
differences
|
(97)
|
(39)
|
Adjustments in respect of prior
periods
|
(21)
|
-
|
Effect of increased / decreased
tax rate on opening balance
|
(88)
|
-
|
Total deferred tax credit
|
(206)
|
(39)
|
Total income tax charge / (credit) for the
year
|
53
|
(901)
|
The tax credit differs from the standard rate of
corporation tax in the UK for the year of 23.52% in 2023 (2022:19%)
for the following reasons:
|
2023
|
2022
|
£'000
|
£'000
|
Profit / (loss) before
tax
|
57
|
(1,814)
|
Profit / (loss) before tax
multiplied by the standard rate of corporation tax
in the UK of 23.52% (2022: 19%)
|
|
|
13
|
(345)
|
Tax effects of:
|
|
|
Fixed asset differences
|
(88)
|
-
|
Expenses not deductible for tax
purposes
|
558
|
696
|
Non-deductible amortisation of
goodwill
|
(46)
|
-
|
Research & development tax
(credits) in additional deduction
|
(674)
|
(431)
|
Adjustments to tax charge in
respect of previous periods - current tax
|
164
|
-
|
Adjustments to tax charge in
respect of previous periods - deferred tax
|
(21)
|
-
|
Additional overseas tax
deduction
|
-
|
(92)
|
Utilisation of previously
unrecognised tax losses
|
(838)
|
(19)
|
Remeasurement of deferred tax for
changes in tax rates
|
(121)
|
-
|
Difference on tax treatment of
share options - unrecognised
|
(208)
|
58
|
Unrecognised deferred tax
movements
|
1,412
|
(664)
|
Difference on overseas tax
rates
|
(98)
|
(104)
|
Total income tax charge / (credit)
|
53
|
(901)
|
During the current and prior year
IQGeo UK Limited has and intends to submit claims for UK Research
and Development tax credit relief ("R&D tax claim") under the
HMRC SME scheme. In 2023 this forms part of the unrecognised
deferred tax asset in the UK. In 2022 IQGeo elected to receive a
cash refund for this claim at a discounted rate of 14.5%. The funds
were received during 2023 for the 2022 claim which was agreed by
HMRC. The consolidated income statements reflects the tax credit
for the 2022 financial year and does not reflect the unrecognised
deferred tax asset for the claim which will be submitted during
2024 in respect of the 2023 financial year.
10.2 Factors that may affect future tax
charges
The Group has tax losses of £23.7 million
(2022: £18.0 million) that are available for offset against future
taxable profits of those subsidiary companies in which the tax
losses arose. Deferred tax assets have not been recognised in
respect of those losses as they may not be used to offset elsewhere
in the Group, and they have arisen in subsidiaries whose future
taxable profits are uncertain. No deferred tax has been recognised
on the unremitted earnings of overseas subsidiaries, because the
earnings are continually reinvested by the Group and no tax is
expected to be payable on them in the foreseeable
future.
The deferred tax balances have been measured
at 25%, based on the UK tax rate as at April 2023 (2022:
25%).
10.3 Deferred tax
The movement in deferred tax in the
consolidated statement of financial position during the year is as
follows:
|
Deferred income tax assets
|
Deferred income tax liabilities
|
|
2023
|
2022
|
2023
|
2022
|
|
£'000
|
£'000
|
£'000
|
£'000
|
At 1 January
|
937
|
630
|
(1,739)
|
(630)
|
Deferred tax liability recognised on
acquisition
|
-
|
-
|
-
|
(841)
|
Prior year adjustment re blended
rate
|
21
|
-
|
-
|
-
|
Deferred tax credit / (charge) to the income
statement
|
185
|
307
|
-
|
(268)
|
At 31 December
|
1,143
|
937
|
(1,739)
|
(1,739)
|
The components of deferred tax included in the
consolidated statement of financial position are as
follows:
|
2023
|
2022
|
|
£'000
|
£'000
|
Fixed asset timing differences
|
(24)
|
-
|
Short term timing differences
|
11
|
-
|
Deferred tax liability on development costs
capitalised
|
(1,400)
|
(937)
|
Deferred tax liability recognised on
acquisition of intangible assets
|
(596)
|
(802)
|
Deferred tax asset on losses
|
1,413
|
937
|
Total net deferred tax liabilities
|
(596)
|
(802)
|
Deferred tax assets have not been recognised
in respect of the following amounts because it is not probable that
future taxable profits will be available against which the Group
can utilise the benefits:
|
2023
|
2022
|
|
£'000
|
£'000
|
Tax losses carried forward
|
4,524
|
3,529
|
Equity-settled share options temporary
differences
|
698
|
906
|
Total unrecognised deferred tax
assets
|
5,222
|
4,435
|
11 Earnings / (Loss) per share (EPS)
|
2023
|
2022
|
Earnings attributable to ordinary
shareholders
|
|
|
Profit / (loss) from operations
(£'000)
|
4
|
(913)
|
Number of shares
|
|
|
Weighted average number of
ordinary shares for the purposes of basic EPS ('000)
|
61,691
|
58,816
|
Effect of dilutive potential ordinary
shares:
|
|
|
- Share options ('000)
|
4,229
|
2,957
|
Weighted average number of
ordinary shares for the purposes of diluted EPS ('000)
|
65,920
|
61,773
|
EPS
|
|
|
Basic and diluted EPS
(pence)
|
0.0
|
(1.6)
|
Basic earnings per share is calculated by
dividing loss for the period attributable to ordinary shareholders
of the Company by the weighted average number of ordinary shares
outstanding during the period. For diluted earnings per share, the
weighted average number of shares is adjusted to allow for the
effects of all dilutive share options and warrants outstanding at
the end of the year. Options have no dilutive effect in loss-making
years and are therefore not classified as dilutive for EPS since
their conversion to ordinary shares does not decrease earnings per
share or increase loss per share.
The Group also presents an adjusted diluted
earnings per share figure which excludes amortisation of acquired
intangibles, share-based payments charge, unrealised foreign
exchange gains/(losses) on intercompany trading balances and
non-recurring items from the measurement of loss for the
period.
|
Notes
|
2023
|
2022
|
|
£'000
|
£'000
|
Earnings for the purposes of
diluted EPS, being net loss attributable to equity holders of the
parent company
|
|
4
|
(913)
|
Adjustments:
|
|
|
|
Amortisation and impairment of
acquired intangible assets
|
12
|
772
|
555
|
Reversal of share-based payments
charge
|
22
|
774
|
303
|
Unrealised foreign exchange
(gains)/losses on intercompany trading balances
|
|
290
|
(574)
|
Reversal of non-recurring
items
|
9
|
1,085
|
1,007
|
Net adjustment
|
|
2,921
|
1,291
|
Adjusted earnings / (loss)
(£'000)
|
|
2,925
|
378
|
Adjusted diluted EPS (pence)
|
|
4.4
|
0.6
|
The adjusted EPS information is considered to
provide an alternative representation of the Group's trading
performance and in particular, it excludes non-recurring items.
Options have no dilutive effect in loss-making years.
12 Intangible assets
Goodwill has been recognised on acquisition of
the Comsof and OSPI businesses in 2022 and 2020 respectively.
Management considers that the Group as a whole represents a single
CGU including the Comsof and OSPI businesses which have been fully
integrated into the existing structure of the Group. All goodwill
has therefore been allocated to this single CGU, and management has
undertaken a detailed review of the future cash flows which are
anticipated to be generated from the Group. With the continued
expectation of growth and profitability, management have concluded
that no impairment is required to goodwill as at 31 December 2023.
Management have projected cash flows to 2028 and then applied a
terminal growth rate of 1% to future periods. The key underlying
assumption is that the Group will continue to see revenue growth
and an increase in recurring revenue contracts through subscription
and demand point sales at a rate consistent to that achieved in
2023. A discount rate of 11.3% has been applied to future cash
flows. No reasonably possible changes to the assumptions would lead
to an impairment. Management believe the assumptions used after
considering the market factors are appropriate.
Capitalised product development costs relate
to expenditure that can be applied to a plan or design for the
production of new or substantial improvements to software products.
Management have assessed the underlying products capitalised to
identify if any indicators of impairment exist. Where an indication
of impairment does exist, management have completed impairment
reviews through estimating the future discounted cash flows to be
generated from these assets and concluded that no impairment is
required as the discounted cash inflows exceeded the carrying value
of the asset as at the year end.
The intangible assets include those acquired
with the Comsof and OSPI business include acquired software
products, acquired brands and acquired customer
relationships. Values have been recognised from a valuation
conducted by external experts.
Amortisation for capitalised product
development costs is 3 years. Software assets represent
assets purchased from third parties.
|
|
|
|
|
|
|
|
|
Goodwill
|
Acquired Customer relationships
|
Acquired Software Products
|
Acquired Brands
|
Capitalised Product Development Costs
|
Software
|
Total
|
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
Cost
|
|
|
|
|
|
|
|
As at January 2022
|
7,408
|
2,093
|
474
|
57
|
10,731
|
128
|
20,891
|
Additions
|
-
|
-
|
-
|
-
|
2,888
|
12
|
2,900
|
Additions as a result of
acquisition
|
6,557
|
1,954
|
606
|
274
|
-
|
-
|
9,391
|
Effect of movements in exchange
rates
|
521
|
216
|
-
|
-
|
-
|
-
|
737
|
At 31 December 2022
|
14,486
|
4,263
|
1,080
|
331
|
13,619
|
140
|
33,919
|
Additions
|
-
|
-
|
-
|
-
|
4,310
|
125
|
4,434
|
Effect of movements in exchange
rates
|
(249)
|
(118)
|
(27)
|
(3)
|
-
|
-
|
(397)
|
At 31 December 2023
|
14,237
|
4,145
|
1,053
|
328
|
17,929
|
265
|
37,957
|
Accumulated amortisation
|
|
|
|
|
|
|
|
As at January 2022
|
(2,970)
|
(209)
|
(158)
|
(29)
|
(8,208)
|
(110)
|
(11,684)
|
Charge for the year
|
-
|
(293)
|
(213)
|
(49)
|
(1,668)
|
(18)
|
(2,241)
|
Effect of movement in exchange
rates
|
-
|
-
|
33
|
2
|
-
|
-
|
35
|
At 31 December 2022
|
(2,970)
|
(502)
|
(338)
|
(76)
|
(9,876)
|
(128)
|
(13,890)
|
Charge for the year
|
-
|
(423)
|
(293)
|
(56)
|
(2,504)
|
(16)
|
(3,292)
|
Effect of movements in exchange
rates
|
-
|
29
|
22
|
4
|
-
|
-
|
55
|
At 31 December 2023
|
(2,970)
|
(896)
|
(609)
|
(128)
|
(12,380)
|
(144)
|
(17,127)
|
Net book value
|
|
|
|
|
|
|
|
At 31 December 2023
|
11,267
|
3,249
|
444
|
200
|
5,549
|
121
|
20,830
|
At 31 December 2022
|
11,516
|
3,761
|
742
|
255
|
3,743
|
12
|
20,029
|
13 Property, plant and equipment
|
Fixtures and fittings
|
Computer equipment
|
Leasehold improvements
|
Total
|
|
£'000
|
£'000
|
£'000
|
£'000
|
Cost
|
|
|
|
|
At 1 January 2022
|
165
|
240
|
-
|
405
|
Effect of movements in exchange
rates
|
18
|
19
|
-
|
37
|
Additions
|
-
|
170
|
-
|
170
|
Additions on
acquisition
|
-
|
61
|
73
|
134
|
At 31 December 2022
|
183
|
490
|
73
|
746
|
Effect of movements in exchange
rates
|
(8)
|
(17)
|
(1)
|
(26)
|
Additions
|
36
|
150
|
59
|
245
|
Disposals
|
-
|
(5)
|
-
|
(5)
|
At 31 December 2023
|
211
|
618
|
131
|
960
|
Accumulated depreciation
|
|
|
|
|
At 1 January 2022
|
(74)
|
(164)
|
-
|
(238)
|
Effect of movements in exchange
rates
|
(9)
|
(12)
|
-
|
(21)
|
Charge for the year
|
(30)
|
(66)
|
(3)
|
(99)
|
Transfer on acquisition
|
-
|
(23)
|
(55)
|
(78)
|
At 31 December 2022
|
(113)
|
(265)
|
(58)
|
(436)
|
Effect of movements in exchange
rates
|
6
|
10
|
1
|
17
|
Charge for the year
|
(36)
|
(119)
|
(8)
|
(163)
|
Disposal
|
-
|
4
|
-
|
4
|
At 31 December 2023
|
(143)
|
(370)
|
(65)
|
(578)
|
Net book value
|
|
|
|
|
At 31 December 2023
|
68
|
248
|
66
|
382
|
At 31 December 2022
|
70
|
225
|
15
|
310
|
14 Right of use
assets
Details of the Group's right-of-use assets and
their carrying amount are as follows:
|
2023
|
2022
|
£'000
|
£'000
|
Cost
|
|
|
At 1 January
|
2,266
|
1,793
|
Effect of movements in exchange
rates
|
(101)
|
227
|
Additions
|
652
|
93
|
Lease acquired on
acquisition
|
-
|
233
|
Disposal
|
(105)
|
(80)
|
Cost at 31 December
|
2,712
|
2,266
|
Amortisation
|
|
|
At 1 January
|
(786)
|
(457)
|
Effect of movements in exchange
rates
|
44
|
(61)
|
Charge for the year
|
(450)
|
(348)
|
Disposal
|
104
|
80
|
Amortisation at 31 December
|
(1,088)
|
(786)
|
Net book amount at 31 December
|
1,624
|
1,480
|
Refer to Note 20 for details of
the related lease liabilities.
15 Trade and
other receivables
|
Notes
|
2023
|
2022
|
£'000
|
£'000
|
Cost
|
|
|
|
Trade receivables,
gross
|
|
12,746
|
9,930
|
Allowances for expected credit
losses
|
15.1
|
(370)
|
(244)
|
Trade receivables, net
|
15.2
|
12,376
|
9,686
|
Amounts recoverable on
contracts
|
|
2,469
|
303
|
Other receivables
|
|
209
|
132
|
Prepayments
|
|
1,276
|
943
|
Total trade and other receivables
|
|
16,330
|
11,064
|
All amounts disclosed are short term. The
carrying value of trade receivables is considered a reasonable
approximation of fair value. Expected credit losses are not
material. The significant increase in amounts recoverable on
contracts is due to the significant increase in revenue during the
year, including increased revenue from services performed in the
last quarter of 2023, and licences delivered at the end of 2023,
which were subsequently invoiced in early 2024.
The following disclosures are in respect of
trade receivables that are either impaired or past due. The
individually impaired receivables mainly relate to customers who
are in unexpectedly difficult economic situations and are assessed
on a customer-by-customer basis following detailed review of the
particular circumstances. To the extent they have not been
specifically provided against, the trade receivables are considered
to be of sound credit rating.
15.1 Movement in allowance for expected credit
losses
|
2023
|
2022
|
£'000
|
£'000
|
At 1 January
|
(244)
|
(250)
|
Allowance released /
(provided)
|
(126)
|
6
|
As 31 December
|
(370)
|
(244)
|
15.2 Ageing past due but not
impaired receivables
|
2023
|
2022
|
£'000
|
£'000
|
Neither past due nor
impaired
|
9,387
|
1,736
|
0 to 90 days
|
2,347
|
7,042
|
More than 90 days
|
642
|
908
|
Total
|
12,376
|
9,686
|
16 Cash and cash equivalents
|
2023
|
2022
|
£'000
|
£'000
|
Cash at bank and in hand
|
10,954
|
8,055
|
Cash and cash equivalents
|
10,954
|
8,055
|
Short-term cash deposits earn interest at fixed
rates for the term of the deposit. Included within cash and cash
equivalents at 31 December 2023 is £2.6 million of cash on deposit
with a time to maturity of 30 days or less.
The composition of cash and cash equivalents by
currency is as follows:
|
| |
By currency
|
2023
|
2022
|
£'000
|
£'000
|
British Pound (GBP)
|
343
|
1,630
|
Euro (EUR)
|
2,643
|
2,910
|
US Dollar (USD)
|
5,305
|
1,814
|
Japanese Yen (JPY)
|
2,537
|
912
|
Canadian Dollar (CAD)
|
126
|
789
|
Cash and cash equivalents
|
10,954
|
8,055
|
17
Trade and other payables
|
Notes
|
2023
|
2022
|
|
£'000
|
£'000
|
Trade and other payables due within 1 year:
|
|
|
|
Deferred income
|
|
12,341
|
7,450
|
Trade payables
|
|
1,243
|
1,247
|
Accruals
|
|
7,318
|
5,371
|
Other taxation and social
security
|
|
1,506
|
866
|
Other payables
|
|
51
|
72
|
Contingent acquisition
consideration
|
6
|
1,347
|
1,211
|
Total trade and other payables due within 1
year
|
|
23,806
|
16,217
|
Trade and other payables due after 1 year:
|
|
|
|
Contingent acquisition
consideration
|
6
|
-
|
996
|
Trade and other payables due after 1 year
|
|
-
|
996
|
Total trade and other payables
|
|
23,806
|
17,213
|
18 Provisions
|
|
2023
|
2022
|
|
£'000
|
£'000
|
SPA tax warranty
|
|
965
|
-
|
Total provisions
|
|
965
|
-
|
A provision has been recognised in
2023 in relation to a SPA tax warranty related to a previous
business disposal. Refer to Note 9 for further information as to
the nature of the provision.
19 Bank
facilities
During 2022 an overdraft facility
of £3.0 million was agreed with HSBC, the Group's bank, as a
contingent arrangement around the acquisition of Comsof NV.
The facility was not drawn down and has now lapsed. Security
in the form of a group debenture was put in place to facilitate
this. The security remains in place at 31 December 2023 to
facilitate additional funding options for the Group.
Within the current period, the
group has entered a Bank Guarantee for €344,000 as required in one
of our customer's contracts.
20 Lease
liabilities
The Group has measured lease
liabilities at the present value of the remaining lease payments,
discounted using the Group's incremental borrowing rate at the date
of initial application.
Details of the Group's liability in respect of
right-of-use assets and their carrying amount are as
follows:
|
2023
|
2022
|
£'000
|
£'000
|
At 1 January
|
1,896
|
1,680
|
Effect of movements in exchange
rates
|
(77)
|
211
|
New leases entered into during the
year
|
652
|
93
|
Lease related to
acquisition
|
-
|
261
|
Finance costs incurred
|
116
|
95
|
Payments made during the
year
|
(602)
|
(444)
|
At 31 December
|
1,985
|
1,896
|
Presented as:
|
|
|
Lease liability payable within 1
year
|
629
|
417
|
Lease liability payable in more
than 1 year
|
1,356
|
1,479
|
At 31 December
|
1,985
|
1,896
|
Refer to Note 14 for details of
the related right-of-use assets.
At 31
December 2023, the lease liability consists of £2.1 million of
lease payment commitments including:
Following the acquisition of
Comsof NV, a nine year lease was acquired
on the existing office premises in Ghent, with the remaining term
running to 2024. A number of motor vehicles were acquired on lease
commitments, typically between three and five years'
duration.
The Group has a seven-year lease
running to February 2028 on office premises in Denver, an 18 month
lease running to April 2025 on office premises in Cambridge, and a
2 year lease running to September 2025 on office premises in
Tokyo.
The OSPI business ceased operating
from premises in Utah in 2022, the lease commitments ceased
on 31 December 2022.
Leases as lessee
During the year the Group held short-term
office rental agreements within the Germany and Canada. The leases
entered into are 12 months or less and the Group has elected to
apply the practical expedient permitted under IFRS 16 to not
recognise a right-of-use asset and lease liability in respect of
these leases due to their short-term nature. The 2023 operating
expense presented within the consolidated income statement includes
£0.3 million of rent expense in respect of these leases. The future
obligations for the new short-term leases are reported within the
table below.
The Group enters into these arrangements as
these are a cost-efficient way of obtaining the short-term benefits
of these assets.
The Group's future aggregate minimum lease
payments under non-cancellable short-term leases are as
follows:
|
Land
and buildings
|
Land
and buildings
|
2023
|
2022
|
|
£'000
|
£'000
|
No later than one year
|
25
|
177
|
Total
|
25
|
177
|
The above table reflects the committed cash
payments under short-term leases, rather than the expected charge
to the consolidated income statement in the relevant
periods.
21 Share
capital and premium
The Company has one class of ordinary shares.
Holders of these shares are entitled to participate in dividends,
and to share in the proceeds on a return of capital on liquidation
or capital reduction or otherwise, in proportion to the number of
shares held. Holders are also entitled to one vote per share at
general meetings of the Company
Where shares have been issued as part of the
consideration for the acquisition of OSPI by IQGeo America Inc and
Comsof NV, excess proceeds over nominal value are recognised in a
merger relief reserve.
|
Ordinary shares of £0.02 each
|
Share
capital
|
Share
premium
|
Merger
relief reserve
|
Total
|
|
Number.of
|
£'000
|
£'000
|
£'000
|
£'000
|
Balance at 1 January
2022
|
57,515,696
|
1,150
|
22,507
|
959
|
24,616
|
Issued under share-based payment
plans
|
184,998
|
4
|
109
|
-
|
113
|
Issue of shares - acquisition
(Comsof)
|
-
|
-
|
-
|
957
|
957
|
Issued on placing to institutional
investors - legal fees
|
-
|
-
|
(95)
|
-
|
(95)
|
Issued on placing to institutional
investors
|
2,800,000
|
56
|
3,444
|
-
|
3,500
|
Issued as part consideration for
acquisition
|
937,923
|
16
|
-
|
-
|
16
|
Deferred consideration -
OSPI
|
-
|
3
|
-
|
237
|
240
|
Balance at 31 December
2022
|
61,438,617
|
1,229
|
25,965
|
2,153
|
29,347
|
Issued under share-based payment
plans
|
252,873
|
5
|
168
|
-
|
173
|
Balance at 31 December
2023
|
61,691,490
|
1,234
|
26,133
|
2,153
|
29,520
|
22
Final Results Announcement
This final results announcement,
which has been agreed with the auditors, was approved by the Board
of Directors on 19 March 2024. It is not the Group's
statutory accounts for the year ended 31 December 2023 within the
meaning of section 435 of the Companies Act 2006 but is extracted
from those financial statements. Copies of the Group's
audited statutory accounts for the year ended 31 December 2023 will
be available at the Company's website, www.iqgeo.com, promptly
after the release of this preliminary announcement and a printed
version will be dispatched to shareholders shortly. Copies
will also be delivered to the registrar of Companies following the
Annual General Meeting.