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 2022.

Financial Highlights

• Revenue for the six-month period was marginally up at £1,652,467 (2021: £1,618,4383);
• Profit/Loss before tax is a loss of (£131,269) (2021: Profit £21,427) and profit after tax £27,656 (2021: £137,352).
• Cash on hand £398,745.
  
  

Results overall are in line with projections. Reduced profit is largely due to increased operating costs and depreciation.

Operational Highlights

• A six month referral trial utilising DXS SMART referral functionality produced significant results in reducing referral rejections from 36% to less than 2% and cutting waiting times from 44 to 22 weeks.
• The IM1 (Interface Mechanism 1 – the NHS owned API providing access to patient records) development and integration with our new generation Aios Platform is complete providing improved user functionality and ability to meet new NHS COVID induced challenges.
• The first revised model ExpertCare hypertension trials, commencing before the end of January 2023 with a group of Primary Care organisations recruited, is ready for participation in up to a 6-month trial.
• Overall development of our new cloud based DXS Point-of-Care solution is progressing well with a first version expected to be launched in the first quarter 2023.
• Concluded the renewal of existing CCG (Clinical Commissioning Group) agreements due to the NHS restructuring.
  
  

Engaging with the various NHS organisations remains challenging due to COVID induced backlogs, clinician shortages and NHS restructuring. On the positive side the NHS announced the following goals for the next 12-months:

• Recover NHS core services and productivity.
• As they recover, make progress in delivering the key ambitions in the NHS Long Term Plan (LTP).
• Continue transforming the NHS for the future.
  
  

To achieve this the NHS have set out clear objectives, some which fit squarely within our solution capabilities.

• On 23 December 2022, the NHS CEO announced the 2023/24 priorities and operational guidance which includes reducing waiting times and improving blood pressure control to 77% by March 2023.
• Empowering the wider workforce to tackle clinician shortages.

David Immelman, CEO of DXS International plc, said:

“With the persistent challenges facing the NHS, our solutions have never been more aligned to NHS priorities.  Our new products are currently being trialled in numerous clinical commissioning groups with significant results demonstrated in reducing referral rejections and drastically cutting waiting times.  We are solely focused in converting these trials to commercial contracts. 

This provides us with an opportunity to engage with the NHS in utilising both our referral and hypertension solutions in significantly contributing towards achieving these objectives.

We are a passionate and bold team with innovative solutions that can make a significant positive contribution towards curbing and cutting rising healthcare costs and ensuring healthier populations. Future sales prospects, in the UK and abroad, are promising, generated by the persistent efforts of our dedicated sales and marketing team. This will ensure the achievement of our objectives resulting in planned shareholder rewards."

INTERIM RESULTS to 31 OCTOBER 2022
CONSOLIDATED INCOME STATEMENT

for the six month period ended 31 October 2022

	Unaudited Group 6 Months ended 31 Oct 2022			Unaudited 6 Months ended 31 Oct 2021			Audited Year to 30 April 2022
	Continuing Operations			Continuing Operations			Continuing Operations
		£			£			£
Turnover	1,652,467			1,618,439			3,285,050
Cost of Sales	(229,308)			(191,952)			(412,904)
Gross Profit	1,423,159			1,426,487			2,872,146
Administration Costs	(1,175,224)			(1,111,965)			(2,269,633
Depreciation and Amortisation	(354,363)			(274,093)			(660,289)
Operating Profit / Loss	(106,428)			40,429			(57,776)
Sundry Income	-			2,152			2,153
	(106,428)			42,581			(55,623)
Interest payable and similar expenses	(24,841)			(21,154)			(43,022)
Loss / Profit on ordinary activities before taxation	(131,269)			21,427			(98,645)
Tax on profit on ordinary activities	158,925			115,925			320,895
Profit for the period	27,656			137,352			222,250
	=========			=========			=========
Profit per share
basic	0.1p			0.3p			0.5p
fully diluted	0.1p			0.3p			0.5p
	=========			=========			=========

STATEMENT of FINANCIAL POSITION

as at 31 October 2022

	Unaudited Group at 31 Oct 2022		Unaudited Group at 31 Oct 2021		Audited Group at 30 April 2022
		£		£		£
Fixed Assets
Intangible Assets	5,499,920		4,921,943		5,183,683
Tangible Assets	1,868		961		2,645
	_________		_________		_________
	5,501,788		4,922,904		5,186,328
	_________		_________		_________
Current assets
Debtors Amounts falling due within one year	487,179		320,784		693,702
Cash at bank and in hand	398,745		543,281		452,379
	_________		_________		_________
	885,924		864,065		1,146,081
Creditors: amounts falling due within one year	(839,344)		(689,586)		(889,761)
	_________		_________		_________
Net current assets / (liabilities)	46,580		174,479		256,320
	_________		_________		_________
Total assets less current liabilities	5,548,368		5,097,383		5,442,648
Creditors: amounts falling due after more than one year	(607,095)		(364,681)		(331,330)
Deferred income	(548,975)		(447,958)		(746,676)
	_________		_________		_________
	4,392,298		4,284,744		4,364,642
	=========		=========		=========
Capital and reserves
Called up share capital	159,246		159,246		159,246
Share Premium	2,671,321		2,676,321		2,671,321
Provision for costs of share option awards	173,808		173,808		173,808
Retained earnings	1,387,923		1,275,369		1,360,267
	_________				_________
Shareholders’ Funds	4,392,298		4,284,744		4,364,642
	=========		=========		=========

STATEMENT of CASH FLOWS

Six months ended 31 October 2022

	Unaudited Group Six months ended 31 Oct 2022		Unaudited Group Six months ended 31 Oct 2021		Audited Group year ended 30 April 2022
		£		£		£
Cash flow from operating activities	(135,175)		242,179		907,862
Interest paid	(24,841)		(21,154)		(43,022)
Sundry Income	-		2,152		2,153
R&D tax credit	323,925		249,925		249,895
	_________		_________		_________
Cash flow from operating activities	163,909		473,102		1,116,888
	_________		_________		_________
Cash flow from investing activities
Payments to acquire intangible fixed assets	(669,967)		(637,695)		(1,284,961)
Expense in respect of share issue in February 2022	-		-		(5,000)
Proceeds / (Payments) in respect of tangibe fixed assets	144		-		(2,354)
Payments to acquire tangible fixed assets
	_________		_________		_________
	(669,823)		(637,695)		(1,292,315
	_________		_________		_________
Cash flow from investing activities
Repayment of long term loans	(47,720)		(84,444)		(164,512)
Advance of long term loans	500,000		-		-
	_________		_________		_________
	452,280		(84,444		(164,512)
	_________		_________		_________
Net increase / (decrease) in cash and cash equivalents	(53,634)		(249,037)		(339,939)
Cash and Cash equivalents at 30 April 2022	452,379		792,318		792,318
	_________		_________		_________
Cash and Cash equivalents at 31 October 2022	398,745		543,281		452,379
	=========		=========		=========
Cash and Cash equivalents consists of:
Cash at bank and in hand	398,745		543,281		452,379
	=========		=========		=========

Net Debt Reconciliation

	Current Debt	Non Current Debt	Cash	Total
		£	£	£
At 30 April 2021	(207,139)	(449,125)	792,318	136,054
Cash flow	(85,993)	117,795	(339,939)	(308,137)
	_________	_________	_________	_________
At 30 April 2022	(293,132)	(331,330)	452,379	(172,083)
Cash flow	(45,963)	(275,765)	(53,634)	(375,362)
	_________	_________	_________	_________
At 31 October 2022	(339,095)	(607,095)	398,745	(547,445)
	=========	=========	=========	=========

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.