Half-year report

DXS INTERNATIONAL PLC

(AQSE: DXSP)

HALF YEAR RESULTS

DXS International plc ("DXS" or the "Company"), the digital clinical decision support company, is pleased to provide shareholders with its unaudited interim results for the half year ending 31 October 2020.

Financial Highlights

• Revenue for the six month period has increased marginally by 3% to £1,716,423 (2019: £1,664,957);

• Profit before tax is up by 68% to £150,556 (2019: £89,824) and profit after tax up by 11% to £224,825 (2019: £202,018).

• Overall revenue has held up well and the Company continues to maintain a healthy balance sheet with £1.2 million in cash at the period end and continues to trade profitably.

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

Operational Highlights

• To qualify for NHS GP IT Futures accreditation our hypertension solution (ExpertCare) is classified as a medical device and therefore requires certification within the UK and EU. We are pleased to announce that the Hypertension Expert Solution is now CE accredited.

• The company also attained ISO accreditation at three ISO standards:

  • ISO27001:2013 - Information Security Management.

  • ISO22301:2019 - Business Continuity Management.

  • ISO20000-1:2018 - Information Technology Service Management.

• Progress with planned ExpertCare hypertension solution pilots with 37 GP practices having indicated a willingness to participate with a number at varying stages of progress.

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

David Immelman, Chief Executive Officer, commented:

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

INTERIM RESULTS to 31 OCTOBER 2020

CONSOLIDATED INCOME STATEMENT

for the six month period ended 31 October 2020

	Unaudited Group 6 Months ended 31 Oct 2020			Unaudited 6 Months ended 31 Oct 2019			Audited Year to 30 April 2020
		£			£			£
Turnover	1,716,424			1,664,957			3,279,787
Cost of Sales	(177,367)			(169,081)			(318,424)
	_________			_________			_________
Gross Profit	1,539,057			1,495,876			2,961,363
Administrative Costs	(1,064,034)			(1,113,939)			(2,085,776)
Depreciation and Amortisation	(302,623)			(257,637)			(571,562)
	_________			_________			_________
Operating Profit	172,398			124,300			304,025
Interest received and similar income	-			4,397			4,398
Interest payable and similar charges	(21,842)			(38,873)			(69,116)
	_________			_________			_________
Profit on ordinary activities before taxation	150,556			89,824			239,307
Tax on profit on ordinary activities	74,269			112,194			189,195
	_________			_________			_________
Profit / (Loss) for the period	224,825			202,018			428,502
	=========			=========			=========
Profit per share
- basic	0.5p			0.6p			1.1p
- fully diluted	0.5p			0.5p			1.1p
	=========			=========			=========

STATEMENT of FINANCIAL POSITION

as at 31 October 2020

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

STATEMENT of CASH FLOWS

Six months ended 31 October 2020

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

Net Debt Reconciliation

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

The above figures have not been reviewed by the company's auditors Crowe U.K. LLP.

The Directors of DXS International plc accept responsibility for this announcement

Contacts:

David Immelman (Chief Executive) DXS International plc	01252 719800 david@dxs-systems.com
https://www.dxs-systems.co.uk

Corporate Advisor
City & Merchant David Papworth	020 7101 7676

Corporate Broker
Hybridan LLP Claire Louise Noyce	020 3764 2341

Notes to Editors

About DXS:

DXS International presents up to date treatment guidelines and recommendations, from Clinical Commissioning Groups and other trusted NHS sources, to doctors, nurses and pharmacists in their workflow and during the patient consultation. This effective clinical decision support ultimately translates to improved healthcare outcomes delivered more cost effectively and which should significantly contribute towards the NHS achieving its projected efficiency savings.