CATENAE INNOVATION PLC Annual Report & Financial Statements
Year Ended 30 September 2019
Company No. 04689130
Catenae Innovation Plc
Annual report and financial statements for the year ended 30 September 2019
Contents
Chairman's Statement 1
Strategic Report for the year ended 30 September 2019 4
Report of the Directors for the year ended 30 September 2019 6
Report of the independent auditors 11
Statement of comprehensive income 15
Statement of financial position 16
Statement of cash flows 17
Statement of changes in equity 18
Notes to the financial statements 19
Catenae Innovation Plc is referred to in this document as "Catenae" or the "Company".
Chairman's Statement
Business and performance review
The trading year was challenging as the Company fought for greater market share against the backdrop of slowing market activity caused by the lack of political certainty produced by Brexit. With the under-achievement of significant sales, the Company managed its finances prudently by further streamlining its operations and significantly reduced its cash burn, leading to the stabilisation of the Company through further consolidation.
The past 12 months have seen Charlton Athletic Community Trust move into year two of its three-year contract with the Company and FireDoor Guardian Ltd. progress into its second contract year with the Company.
Board changes
In July 2019 Tony Sanders, the former Chief Executive Officer and Chairman, stepped down as a director of the Company and Guy Meyer, the Business Development Director at the time, assumed the role of Interim Chief Executive Officer. For corporate governance best practice, Kevin Everett was appointed Interim Non-Executive Chairman. Anthony Flynn also joined the Board in July 2019 and resigned in December 2019.
On 24 April 2020, Kevin Everett stepped down from the Board, and was replaced by Brian Thompson as Non-executive Chairman. John Farthing, the Company's Chief Financial Officer, also joined the Board on 24 April 2020.
Financial Overview
The Company had a net loss for the year of £825,230 (2018: £1,106,788). Revenues for the year were £102,549 (2018: £157,218).
The Company has a statement of financial position at the year-end showing net liabilities of £727,077 (2018: £891,929).
On 26 March 2020, the Company announced it had agreed a loan facility of £150,000 from Brian Thompson.
The results are presented under European Union Adopted International Financial Reporting Standards ("EU Adopted IFRS").
Working capital and fund raisings
During the year, the Company issued 1,145,000,000 new ordinary shares for a total gross consideration of £1,245,000, of which £1,122,810 was received in cash and £122,190 to settle existing liabilities.
Post period end:-
On 31 January 2020 the Company significantly improved its balance sheet through agreeing the settlement of £404,250 of liabilities by converting them into 36,750,000 new ordinary shares in the Company, also on that date the Company also raised £153,000 through the issue of 38,250,000 new ordinary shares.
On 14 May 2020, the Company raised £320,000 through the subscription of 320,000,000 new ordinary shares
On the 21 May 2020 the Company raised £25,000 through the subscription of 6,250,000 new ordinary shares and a further £65,485 of liabilities were converted into 3,341,057 new ordinary shares.
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On 10 June 2020, the Company raised £187,500 through the exercise of a warrant over 15,000,000 new ordinary shares and on the same date £35,000 of liabilities were converted into 2,083,333 new ordinary shares.
On 12 June 2020, £47,000 of liabilities were converted in 2,350,000 new of new ordinary shares concurrent with the raising of £703,000 through the subscription of 37,500,000 new ordinary shares.
All of the above actions, along with a significant reduction in operating costs, have given the Company the strongest balance sheet in recent history with approximately £1,046,000 in cash at the bank on 26 June 2020.
COVID-19
Notwithstanding the current market developments in relation to the spread of COVID-19 and its impact on the global economy, the Company has confidence in its business continuity arrangements. At the end of January 2020, the Company had reduced its rental contract to zero cost by having all employees working remotely. Currently, where needed, all business meetings are held using video conferencing platforms. The Company sees that for the foreseeable future, this will now be standard operational practice.
Summary
The new Board saw that the stabilisation of the business was critical in getting the Company to a position where it could reset its business strategy. The Company is focused on seeking new opportunities that give shareholders the best chance of a return on their investments.
The Board is pleased that the business has finally reached a point where the legacy challenges that it inherited are now well and truly behind it, giving the Company the bandwidth to focus on the future.
Brian Thompson
Chairman
26 June 2020
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Board of Directors
Directors as at 26th June 2020
Brian Thompson, Non-Executive Chairman appointed as Non-Executive Chairman 24 April 2020
Edward Guy Meyer, Interim Chief Executive Officer appointed as Interim CEO 17 July 2019, Business Development Director, 19 September 2017
John Farthing, Chief Financial Officer appointed as Executive Director, 24 April 2020
Company Secretary
John Farthing appointed 31 August 2019
Company Information
Registered in England
Company no: 04689130
Auditors: MAH, Chartered Accountants
154 Bishopsgate, London EC2M 4LN
Nominated Adviser: Cairn Financial Advisers LLP
Cheyne House, 62-63 Crown Ct, Cheapside, London, EC2V 6AX
Brokers: Brandon Hill Capital Limited
1 Tudor Street, London EC4Y 0AH
Registrars: Link Asset Services
The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU
Registered office: Catenae Innovation Plc, 27 Old Gloucester Street, London WC1N 3AX
Trading Address: Catenae Innovation Plc, 26/27 Lansdowne Terrace, Newcastle NE3 1HP
Telephone:+44 (0)191 580 8545
Email:enquiries@catenaeinnovation.com
Website:www.catenaeinnovation.com
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Disclaimer
Catenae Innovation plc published this content on 30 June 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 June 2020 07:38:03 UTC
