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 2021.

Financial Highlights

• Revenue for the six-month period has held well at £1,618,439 (2020: £1,716,424).

• In line with projections, profit before tax is £21,427 (2020: £150,556) and profit after tax £137,352 (2020: £224,825).

• Cash on hand £543,000.
  
  

Results overall are in line with projections for the revised strategy to capitalise on opportunities resulting from COVID including increased investment in order to scale solutions aimed at managing significant backlogs in “healthcare business as usual” and the increased clinician shortage crisis. DXS has been investing for growth over the past six months and is expecting to have a stronger second half to the business, as it traditionally does and did in the financial year to 30 April 2021.

Operational Highlights

• CompleteCare templates and toolkits well received in early pilots, providing much needed solutions in managing healthcare backlogs in areas such as medicines monitoring, cancer care, mental health and learning disability.

• ExpertCare hypertension pilots completed, confirming that only 50% of the pilot patients are being managed in compliance with “Gold Standard” treatment guidelines and that by using ExpertCare this immediately improved to 75%.

• Development of our new cloud based DXS Point of Care solution is progressing well.
  
  

Reorganisation of the NHS Management Structure

The current 106 Clinical Commissioning Groups responsible for the planning and commissioning of healthcare in their respective areas, and responsible for approximately 60% of the NHS budget, are being replaced by 42 Integrated Care Systems (ICSs). These ICSs are intended to bring about major changes in how health and care services are planned, paid for and delivered, and are a key part of the future direction for the NHS as set out in the NHS Long Term Plan. Another major change for primary care has been the formation of 1,250 Primary Care Networks (PCNs) each representing small groupings of GP practices with registered patients numbering between 30,000 -50,000.

One major opportunity this represents for DXS is that these PCN’s are mandated to utilise clinical pharmacists, a 70% NHS funded reimbursable role, to conduct structured medicine reviews on behalf of the GP practices. Our new AI medicines management solution will provide an invaluable tool empowering these pharmacists to manage complex reviews with minimal GP input and help the NHS manage COVID backlogs and GP shortages.

Refined Strategy

Against this backdrop, we have refined our strategy by accelerating our planned development of adding additional long-term conditions, such as diabetes, to our new solutions, underpinned by an aggressive sales and marketing campaign. Due to this increased investment in growth, we expect profitability to decline in the short to medium term resulting in an aggressive upward revenue and profitability curve within 18 months.

David Immelman, Chief Executive of DXS said: “We remain resolute in our conviction that our foresight and efforts into developing a world beating expert long term condition management solutions is 100% aligned with the global strategy of digital transformation in healthcare. This was again evidenced by the recent announcement of the NHS commitment to digital transformation to merge NHS Digital and NHSX with NHS England and Improvement.

We expect our suite of Expert AI Solutions to have a major positive impact in the improvement of healthcare outcomes.”

INTERIM RESULTS to 31 OCTOBER 2021

CONSOLIDATED INCOME STATEMENT

for the six-month period ended 31 October 2021

	Unaudited Group 6 Months ended 31 Oct 2021			Unaudited 6 Months ended 31 Oct 2020			Audited Year to 30 April 2021
	Continuing Operations			Continuing Operations			Continuing Operations
		£			£			£
Turnover	1,618,439			1,716,424			3,605,766
Cost of Sales	(191,952)			(177,367)			(419,757)
	_________			_________			_________
Gross Profit	1,426,487			1,539,057			3,186,009
Administration Costs	(1,111,965)			(1,064,034)			(1,917,310)
Depreciation and Amortisation	(274,093)			(302,623)			(980,683)
	_________			_________			_________
Operating Profit	40,429			172,398			288,016
Sundry Income	2,152			-			9,539
	_________			_________			_________
	42,581			172,398			297,555
Interest payable and similar expenses	(21,154)			(21,842)			(43,882
	_________			_________			_________
Profit on ordinary activities before taxation	21,427			150,556			253,673
Tax on profit on ordinary activities	115,925			74,269			243,240
	_________			_________			_________
Profit for the period	137,352			224,825			496,913
	=========			=========			=========
Profit per share
basic	0.3p			0.6p			1p
fully diluted	0.3p			0.5p			1p
	=========			=========			=========

STATEMENT of FINANCIAL POSITION

as at 31 October 2021

	Unaudited Group at 31 Oct 2021		Unaudited Group at 31 Oct 2020		Audited Group at 30 April 2021
		£		£		£
Fixed Assets
Intangible Assets	4,921,943		4,273,801		4,557,969
Tangible Assets	961		1,680		1,333
	_________		_________		_________
	4,922,904		4,275,481		4,559,302
	_________		_________		_________
Current assets
Debtors Amounts falling due within one year	320,784		283,515		850,258
Cash at bank and in hand	543,281		1,207,305		702,318
	_________		_________		_________
	864,065		1,490,820		1,642,576
Creditors: amounts falling due within one year	(689,586)		(845,059)		(951,673)
	_________		_________		_________
Net current assets / (liabilities)	174,479		645,761		690,903
	_________		_________		_________
Total assets less current liabilities	5,097,383		4,921,242		5,250,205
Creditors: amounts falling due after more than one year	(364,681)		(563,580)		(449,125)
Deferred income	(447,958)		(482,358)		(653,688)
	_________		_________		_________
	4,284,744		3,875,304		4,147,392
	=========		=========		=========
Capital and reserves
Called up share capital	159,246		159,246		159,246
Share Premium	2,676,321		2,676,321		2,676,321
Provision for costs of share option awards	173,808		173,808		173,808
Retained earnings	1,275,369		865,929		1,138,017
	_________		_________		_________
Shareholders’ Funds	4,284,744		3,875,304		4,147,392
	=========		=========		=========

STATEMENT of CASH FLOWS

Six months ended 31 October 2021

	Unaudited Group Six months ended 31 Oct 2021		Unaudited Group Six months ended 31 Oct 2020		Audited Group year ended 30 April 2021
		£		£		£
Cash flow from operating activities	242,179		435,895		1,088,409
Interest paid	(21,154)		(21,842)		(43,882)
Sundry Income	2,152		-		9,539
R&D tax credit	249,925		186,269		186,240
	_________		_________		_________
Cash flow from operating activities	473,102		600,322		1,240,306
	_________		_________		_________
Cash flow from investing activities
Payments to acquire intangible fixed assets	(637,695)		(568,259)		(1,529,762)
Payments to acquire tangible fixed assets	-		(1,329)		(1,707)
	_________		_________		_________
	(637,695)		(569,588)		(1.531,469)
	_________		_________		_________
Cash flow from investing activities
Repayment of long term loans	(84,444)		(24,074)		(117,164)
Advance of long term loans	-		190,000		190,000
	_________		_________		_________
	84,444		165,926		72,836
	_________		_________		_________
Net increase / (decrease) in cash and cash equivalents	(249,037)		196,660		(218,327)
Cash and Cash equivalents at 30 April 2021	792,318		1,010,645		1,010,645
	_________		_________		_________
Cash and Cash equivalents at 3 October 2020	543,281		1,207,305		792,318
	=========		=========		=========
Cash and Cash equivalents consists of:
Cash at bank and in hand	543,281		1,207,305		792,318
	=========		=========		=========

Net Debt Reconciliation

	Current Debt	Non Current Debt	Cash	Total
	£	£	£	£
At 30 April 2019	(420,131)	(376,289)	1,010,645	(214,225)
Cash flow	212.992	(72,836)	(218,327)	(78,171)
	_________	_________	_________	_________
At 30 April 2020	(207,139)	(449,125)	792,318	136,054
Cash flow	64,771	84,444	(249,037)	(99,882)
	_________	_________	_________	_________
At 31 October 2021	(142,368)	(364,681)	543,281	36,232
	=========	=========	=========	=========

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.