ChallengerX Plc - Management Accounts
28 April 2023
ChallengerX plc
(“ChallengerX”, “CX" or the "Company")
Management accounts for the quarters ended 31 March 2023 and 31 December 2022
ChallengerX (AQUIS: CXS), the trading company with principal activity of employing both traditional and non-traditional marketing strategies to rapidly “professionalise” amateur and semi-professional sports clubs around the world announces its unaudited management accounts reports for the quarters ended 31 March 2023 and 31 December 2022.
This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.
For further information, please contact:
Enquiries:
ChallengerX plc |
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First Sentinel Corporate |
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Directors Statement
Introduction
ChallengerX plc (the “Company” or “ChallengerX”) is an investment company quoted on the Aquis Stock Exchange (“AQSE”) Growth Market. The Company was incorporated on 7 June 2021 and its shares were admitted to trading on 23 December 2021.
Activities during the periods
The company continued to advance its development of a platform for the promotion and marketing of sports clubs in both a traditional and non-traditional way. Expenditure was particularly heavy in the quarter ended 31 December 2022 in terms of principally programmers costs which, as an accounting policy, are written off as incurred. Further development and related costs will be required as clients are brought on board.
In February 2023 the Company announced it had raised a total of GBP 250,000 (gross) from Aalto Capital AB, through the issue of 55,555,556 new ordinary shares pursuant to a subscription letter. The payment relating to the fundraise hasn’t yet been fully received by the Company. The outstanding amount at 31 March 2023 of £250,000 is shown as the account of “Trade and other receivables” on the Statement of Financial Position. As at the date of this report, the Company has received £50,000. The Company is in ongoing conversations with the investor to receive the remaining balance.
The Directors confirm that this current shortfall in the fundraise does not impact the working capital position of the Company.
The Company also announced that it granted Aalto Capital AB a total of 55,555,556 warrants to subscribe for new ordinary shares of GBP 0.001 each (‘Warrants’). The Warrants are exercisable at 0.45 pence per ordinary share, and for a period of 5 years from the date of issue.
Outlook
The development of the marketing platform as mentioned above will require more expenditure and it is hoped that recoveries of monies sequestrated by the French Authorities from the subsidiary SportsX SAS will assist in this regard. Meanwhile the company will look to supplement its income by applying itself to other project opportunities and will continue to review its business plan and strategy by looking at transactions in other sectors that could lead to a reverse transaction whilst keeping its establishment overheads as lean as possible.
John May
Chairman
Unaudited Statement of Comprehensive Income for the quarters ended 31 March 2023 and 31 December 2022
31 March | 31 December | |
£’000 | £’000 | |
Revenue | - | 1 |
Administrative expenses | (46) | (162) |
Operating loss | (46) | (161) |
Loss before tax | (46) | (161) |
| - | - |
Loss for the period | (46) | (161) |
Total comprehensive loss | (46) | (161) |
(Loss) per share (pence) from continuing operations attributable to | (0.013) | (0.056) |
Statement of Financial Position As at quarters ended 31 March 2023 and 31 December 2022
31 March 2023 | 31 December 2022 | |
Current assets | ||
Trade and other receivables | 256 | 8 |
Cash and cash equivalents | 31 | 92 |
Total current assets | 287 | 100 |
Total assets | 287 | 100 |
Current liabilities | ||
Trade and other payables | 56 | 58 |
Total current liabilities | 56 | 58 |
Net assets | 231 | 42 |
Capital and reserves | ||
Share capital | 343 | 288 |
Share premium | 1,410 | 1,230 |
Retained earnings | (1,522) | (1,476) |
Total equity | 231 | 42 |
Statement of Changes in Equity
For the quarters ended 31 March 2023 and 31 December 2022
Share capital | Share premium | Retained earnings | Total | |
£’000 | £’000 | £’000 | £’000 | |
As at 30 September 2022 | 288 | 1,230 | (1,315) | 203 |
Loss for quarter ended 31 December 2022 | - | - | (161) | (161) |
Total Comprehensive Income | - | - | (161) | (161) |
As at 31 December 2022 | 288 | 1,230 | (1,476) | 42 |
Allotment of ordinary shares | 55 | 180 | - | 235 |
Loss for the quarter ended 31 March 2023 |
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|
|
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Total Comprehensive Income | - | - | (46) | (46) |
As at 31 March 2023 | 343 | 1,410 | (1,522) | 231 |
Statement of Cash Flows
For the quarter ended 31 March 2023 and 31 December 2022
31 March 2023 | 31 December 2022 | |
£’000 | £’000 | |
Cash from operating activities | ||
Loss before tax | (46) | (161) |
Adjustments for: | ||
(Increase) in trade and other receivables | (248) | (1) |
(Decrease)/Increase in trade and other payables | (2) | 18 |
Net cash used in operating activities | (296) | (144) |
Cash flows from financing activities | ||
Proceeds from issue of shares (net of issue costs) | 235 | - |
Net cash from financing activities | 235 | - |
Net cash flow for the period | (61) | (144) |
Cash and cash equivalents at beginning of period | 92 | 236 |
Cash and cash equivalents at end of period | 31 | 92 |
Net change in cash and cash equivalents | (61) | (144) |
Cash and cash equivalents comprise: | ||
Cash at bank and in hand | 31 | 92 |
31 | 92 |
Notes to the financial statements
1. General information
ChallengerX plc is a public limited company limited by shares and was incorporated in England on 7 June 2021 with company number 13440398. Its registered office is 16 Great Queen Street, London, WC2B 5DG.
The Company’s shares are traded on the Aquis Stock Exchange Growth Market under symbol CXS and ISIN number
GB00BMD0WG01.
The Company was first incorporated on 7 June 2021.
The information for periods ended 31 December 2022 and 31 March 2023 are unaudited.
2. Basis of Preparation
The quarterly management accounts of ChallengerX plc have been prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, “The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland” (“FRS 102”) and the Companies Act 2006.
These management accounts are prepared on a going concern basis, under the historical cost convention, as modified by the recognition of listed investments at fair value.
The financial statements are presented in Pounds Sterling, which is the Company’s presentation and functional
currency.
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgment and complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 3 to the financial statements.
The financial statements have been prepared on the historical cost basis and are presented in £’000 unless
otherwise stated.
3. Going Concern
As at 31 March 2023, the Company had cash of £31,000. As a newly established trading business, the Company has limited operating cash flow and is dependent on the performance of its trading and its cash balances for its working capital requirements. As at the date of this report, the Company had approximately £71,000 cash at bank.
The Directors continue to seek recovery of the sequestered funds held by the Administrator of it’s subsidiary, SportsX, which are believed to amount to approximately £0.6m.
For this reason, it continues to adopt the going concern basis in preparing the financial statements.
4. Earnings per share
31 March | 31 December 2022 | |
Earnings | £’000 | £’000 |
Loss for the quarters ended | (46) | (161) |
Number of shares | ||
Number of shares for the purposes of basic and diluted earnings per share | 343,140,556 | 287,585,000 |
Earnings per share (pence) | (0.013) | (0.056) |