Loqus p l c : Announces approval of half-yearly report

Loqus Holdings p.l.c.

	COMPANY ANNOUNCEMENT
	Loqus Holdings p.l.c. (the "Company")
	Announces approval of half-yearly report
Date of Announcement	23rd February 2022
Reference	206/2022

This is a company announcement made by the Company in compliance with Chapter 5 of the Capital Market Rules:

QUOTE

The Company announces that the directors have approved the half-yearly report of the Company for the six months ended 31st December 2021. A copy of the half-yearly report is attached to this announcement, and may also be downloaded from the Company's website https://www.loqusgroup.com/publications.html

UNQUOTE

Adrian Mallia

Company Secretary

Loqus Holdings p.l.c.

Condensed Consolidated Interim

Report

(unaudited)

31 December 2021

Loqus Holdings p.l.c.
31 December 2021
Contents
Directors' Report pursuant to Capital Market Rule 5.75.2 .................................................................................	1
Principal Activities ...........................................................................................................................................	1
Review of Performance ...................................................................................................................................	1
Way forward....................................................................................................................................................	2
Condensed Consolidated Interim Statement of Comprehensive Income...........................................................	3
Condensed Consolidated Statement of Financial Position ............................................................................	4 - 5
Condensed Consolidated Interim Statements of Changes in Equity...................................................................	6
Condensed Consolidated Interim Statement of Cash Flows ...............................................................................	7
Notes to the Condensed Consolidated Interim Financial Statements ................................................................	8
Reporting entity...............................................................................................................................................	8
Basis of preparation and statement of compliance ........................................................................................	8
Significant accounting policies ........................................................................................................................	8
Segment information.......................................................................................................................................	9
Related parties ..............................................................................................................................................	10
Significant accounting judgements, estimates and assumptions .................................................................	10
Statement pursuant to Capital Market Rule 5.75.3 issued by the Listing Authority.........................................	11

Loqus Holdings p.l.c.

Directors' Report pursuant to Capital Market Rule 5.75.2

For the six-months ended 31 December 2021

The Directors present their report in accordance with the requirements of MFSA Capital Market Rule 5.75. This report, which shall be read in conjunction with the Condensed Consolidated Interim Financial Statements for the six months ended 31 December 2021, including the Notes thereto, forms part of the Half-Yearly Report of Loqus Holdings p.l.c., drawn up in terms of the requirements of Capital Market Rules 5.74 to 5.75.

Principal Activities

The Company holds investments in subsidiaries engaged in the provision of fleet management, back-office processing, and ICT solutions.

Review of Performance

The first six months ending 31 December 2021 saw the Group reporting record revenues. The Group is reporting a profit before tax, for the period, of EUR929,682 (2020: EUR640,130).

	01.07.2021	01.07.2020
	to 31.12.2021	to 31.12.2020	% change
	EURO	EURO
Revenue	5,108,660	3,674,794	39%
Costs	3,668,344	2,354,351	55%
EBITDA	1,440,316	1,320,443	9%
Profit for the period	929,682	640,130	45%
before tax

Growth was reported in all segments with total revenue increasing by 39%, resulting in a healthy EBITDA of 29% of revenue. Our investment in both back-office processing and our openFleet product resulted in the highest revenue ever recorded from these segments.

A significant part of our annual cost is preparation for planned growth. In this period we invested a further EUR779k in employee costs and an increase in cloud infrastructure to prepare for activities that have been contracted and planned for. The increase in resources is essential to meet increased workload triggered by our latest wins.

Following our important investment in research and development on the open Fleet product line, amortisation costs relating to this investment increased. During the period under review we also turned our focus on the acceleration of the roll-out of our core fleet product and this resulted in a decrease of 33% in our capitalised salaries.

The Group is also reporting a net cash position of EUR2,288,097. Our improved cash flow has allowed the Group to regularise and decrease its exposure in terms of taxes and social security contributions. In fact, the improvement in the bottom line was positively impacted by the reversal of accrued financing costs in the prior period following an agreement reached with the local authorities.

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Loqus Holdings p.l.c.

Directors' Report pursuant to Capital Market Rule 5.75.2 (continued)

For the six-months ended 31 December 2021

Forecasts

The Group is expecting figures for the financial year 1 July 2021 to 30 June 2022 to be in line with the results of the prior year. We expect the increase in the second half of the current period to be significantly less than the increase in the first half of this period. The peak period surge, around Black tag weeks and the Christmas period, will not be present between January to June. Costs related to our investments in research and development and improving our product deployment and support are expected to continue to increase.

Way forward

The Group has been financed over the last thirteen years through cash generated from operations. Our prudent approach has allowed us to grow, year on year, while investing in personnel, products, and marketing from this limited cash pool.

The Group has been hampered by accumulated losses and the last seven years have seen the Group return to profitability. The Group is at a point where it needs to restructure its balance sheet and attract new financing if it is to realise the Group's full potential.

Our strategy is working and combining our ideas with capital increase augers strong growth for the Group.

Approved by the Board on 23 February 2022 and signed on its behalf by:

Mr Walter Bonnici	Mr Joe Fenech Conti
Chairman	Director

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