CATENAI PLC — Interim / Quarterly Report 2023

Sep 29, 2023

National Storage Mechanism | Additional information

RNS Number : 0792O

Catenae Innovation PLC

29 September 2023

29 September 2023

Catenae Innovation PLC

("Catenae", the "Company" or the "Group")

Half Year Results

Convertible Loan Update

Catenae Innovation PLC (AIM: CTEA), the AIM quoted provider of digital media and technology, announces its half-yearly report for the six months ended 30 June 2023.

As this is the first six months since the change of the year-end to 31 December, comparative figures are for the six months to 31 March 2022.

Financial overview

·    Loss of £185,267 in the period under review (2022: £287,168) with revenues of £22,173 (2022: £17,500).

·    Net (liability)/asset position £(314,846) (2022: £110,033).

Post period end

·    As announced on 6 September 2023, the Company's 51% subsidiary ceased trading due to losses incurred.

The Company continues to carefully manage its working capital position.

Convertible Loan Update

As announced on 30 September 2022, the Company entered into an agreement for a convertible loan facility for up to £250,000 ("Convertible Loan") with Sanderson Capital Partners Limited ("Sanderson Capital"), which consists of an initial drawdown of £125,000 followed by a further drawdown expected three months thereafter.

As at 30 June 2023, an advance of £30,000 had been received against the £125,000 and no shares or warrants issued. As at 28 September 2023, a total advance of £61,000 had been received against the £125,000 and no shares or warrants have been issued.

At each £125,000 drawdown, the Company will issue new ordinary shares to Sanderson Capital equal to 10 percent of the drawdown value at an issue price of the 10-day volume weighted average price prior to the date of drawdown. A further announcement will be made on the date of each drawdown event.

Sanderson Capital will be able to convert part or all of the Convertible Loan facility in minimum increments of £5,000, with the conversion price being fixed at the lower of i) 0.25p; or ii) 90% of the 5-day volume weighted average price from the first day of dealings of the Company's restoration to trading on AIM. The Convertible Loan facility is interest-free.

As part of the Convertible Loan facility agreement, Sanderson Capital will be issued new ordinary shares and a warrant over new ordinary shares in the Company, of which the issue price and exercise price is 0.25 pence per share, being the closing mid-price of the Company's ordinary shares on 30 September 2022, the  first day of dealings following the release of the Company's final results for the year ended 30 September 2021, and the interim results for the period ended 31 March 2022 which enabled the lifting of the suspension and restoration to trading of the Company's ordinary shares on AIM.

The new ordinary shares and warrants over new ordinary shares will be issued after the next general meeting of the Company and a further announcement setting out the details will be made at the time of issue.

This announcement contains inside information for the purposes of the UK Market Abuse Regulation. The person who arranged for release of this announcement on behalf of the Company was Guy Meyer, Chief Executive Officer of the Company and the Directors of the Company are responsible for the release of this announcement.

For further information please contact:

Catenae Innovation PLC	+44 (0)191 580 8545
Guy Meyer, Chief Executive Officer
Cairn Financial Advisers LLP (Nominated Adviser)	+44(0)20 7213 0880
Liam Murray / Jo Turner
Shard Capital Partners LLP (Broker)	+44 (0)20 7186 9952
Damon Heath

Notes to Editors:

About Catenae Innovation PLC

Catenae Innovation is an AIM quoted provider of digital media and technology services. The Company specialises in Distributed Ledger Technology solutions that solve commercial challenges and create opportunities for its clients. The Company has an experienced IT team of project managers and integrators who have deployed systems across corporate, government and educational sectors.

www.catenaeinnovation.com

Consolidated Statement of Comprehensive Income

For the Period Ended 30 June 2023

	Unaudited six months ended 30 June 2023 £	Unaudited six months ended 31 March 2022 £	Audited year ended 31 December 2022 £
Revenue	22,173	17,500	152,437
Cost of sales	(2,315)	(6,000)	(12,600)
Gross profit	19,858	11,500	139,837
Administrative expenses	(205,125)	(298,668)	(667,002)
Loss from operations	(185,267)	(287,168)	(527,165)
Net Finance income/(expense)	-	-	-
Loss before taxation	(185,267)	(287,168)	(527,165)
Taxation	-	-	3,668
Total comprehensive loss for the year	(185,267)	(287,168)	(523,497)
Loss attributable to:
Owners of the parent	(183,023)	(280,260)	(514,695)
Non-controlling interest	(2,244)	(6,908)	(8,802)

Consolidated Statement of Financial Position

For the Period Ended 30 June 2023 

		Unaudited six months ended 30 June 2023 £	Unaudited six months ended 31 March 2022 £	Audited year ended 31 December 2022 £
Non-current assets
Tangible Assets		4,345	6,518	5,431
Intangible assets		1	1	1
		4,346	6,519	5,432
Current assets
Trade and other receivables		17,893	30,514	81,913
Cash and cash equivalents		2,015	337,183	65,443
		19,908	367,697	147,356
Current liabilities
Trade and other payables		(339,100)	(264,183)	(279,086)
		(339,100)	(264,183)	(279,086)
Non-current liabilities
Interest-bearing loans		-	-	-
Total Liabilities		(339,100)	(264,183)	(279,086)
Net Assets/(Liabilities)		(314,846)	110,033	(126,298)
Non-controlling Interest		472	4,611	2,716
Capital and reserves attributable to equity holders of the company
Ordinary share capital		570,078	570,078	570,078
Deferred share capital		3,159,130	3,159,130	3,159,130
Share premium account		19,665,457	19,665,457	19,665,457
Share reserve		(83,333)	(83,333)	(83,333)
Merger reserve		11,119,585	11,119,585	11,119,585
Capital Redemption Reserve		2,732,904	2,732,904	2,732,904
Retained losses		(37,479,139)	(37,058,399)	(37,292,835)
Total Equity		(314,846)	110,033	(126,298)

Consolidated Statement of Cash Flows

For the Period Ended 30 June 2023 

	Unaudited six months ended 30 June 2023 £	Unaudited six months ended 31 March 2022 £	Audited year ended 31 Dec 2022 £
Loss for the period	(185,267)	(287,168)	(523,497)
Adjustments for:
Impairment of investments	-	-	-
Depreciation	1,086	-	1,810
Net (loss) before changes in working capital	(184,181)	(287,168)	(521,687)
(Increase) / decrease in trade and other receivables	64,019	15,034	(36,677)
(Decrease) / increase in trade and other payables	56,734	(11,038)	3,865
Cash from operations	(63,428)	(283,172)	(554,499)
Interest received	-	-	-
Interest paid	-	-	-
Net cash flows from operating activities	(63,428)	(283,172)	(554,499)
Investing activities
Purchase of plant and equipment	-	-	(413)
Net cash flows from investing activities	-	-	(413)
Financing Activities
Issue of ordinary share capital	-	15,273	15,273
Repayment of loans	-	-	-
New loans raised	-	-	-
Net cash flows from financing activities	-	15,273	15,273
Net increase / (decrease) in cash	(63,428)	(267,899)	(539,639)
Cash and cash equivalents at beginning of period	65,443	605,082	605,082
Cash and cash equivalents at end of period	2,015	337,183	65,443

Company Statement of Financial Position

For the Period Ended 30 June 2023  

		Unaudited six months ended 30 June 2023 £	Unaudited six months ended 31 March 2022 £	Audited year ended 31 December 2022 £
Non-current assets
Intangible assets		1	1	1
		1	1	1
Current assets
Trade and other receivables		13,864	24,242	74,745
Cash and cash equivalents		99	332,209	61,922
		13,963	356,451	136,667
Current liabilities
Trade and other payables		(366,493)	(255,828)	(308,508)
		(366,493)	(255,828)	(308,508)
Non-current liabilities
Interest-bearing loans		-	-	-
Total Liabilities		(366,493)	(255,828)	(308,508)
Net Assets/(Liabilities)		(352,529)	100,624	(171,840)
Capital and reserves attributable to equity holders of the company
Ordinary share capital		570,078	570,078	570,078
Deferred share capital		3,159,130	3,159,130	3,159,130
Share premium account		19,665,457	19,665,457	19,665,457
Share reserve		(83,333)	(83,333)	(83,333)
Merger reserve		11,119,585	11,119,585	11,119,585
Capital Redemption Reserve		2,732,904	2,732,904	2,732,904
Retained losses		(37,516,350)	(37,063,197)	(37,335,661)
Total Equity		(352,529)	100,624	(171,840)

Company Statement of Cash Flows

For the Period Ended 30 June 2023 

	Unaudited six months ended 30 June 2023 £	Unaudited six months ended 31 March 2022 £	Audited year ended 31 Dec 2022 £
Loss for the period	(180,690)	(273,069)	(545,533)
Adjustments for: Impairment of investment			-
Net (loss) before changes in working capital	(180,690)	(273,069)	(545,533)
(Increase) / decrease in trade and other receivables	60,882	20,995	(29,509)
(Decrease) / increase in trade and other payables	57,985	29,168	81,849
Cash from operations	(61,823)	(222,906)	(493,193)
Interest received	-	-	-
Interest paid	-	-	-
Net cash flows from operating activities	(61,823)	(222,906)	(493,193)
Financing Activities
Issue of ordinary share capital	-	15,273	15,273
Repayment of loans	-	-	-
New loans raised	-	-	-
Net cash flows from financing activities	-	15,273	15,273
Net increase / (decrease) in cash	(61,823)	(207,633)	(477,920)
Cash and cash equivalents at beginning of period	61,922	539,842	539,842
Cash and cash equivalents at end of period	99	332,209	61,922

Caution regarding forward looking statements

Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect", ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

IR FLFIAAIITFIV