Half-year Report

About this update from Bytes Technology Group Plc

[{"type":"text","content":"\n \n \n \n 26 October 2022 \n \n \n \n \n   \n \n \n \n \n BYTES TECHNOLOGY GROUP plc \n \n \n \n \n ('BTG', 'the Group') \n \n \n \n \n   \n \n \n \n \n Results for the six months ended 31 August 2022 \n \n \n \n \n   \n \n \n \n \n Strong first half extending our track record of double-digit growth \n \n \n \n   \n \n \n Bytes Technology Group plc (LSE: BYIT, JSE: BYI), one of the UK's leading software, security and cloud services specialists, today announces its half year results for the 6 months ended 31 August 2022 ('H1 FY23'). \n \n \n   \n \n \n \n Neil Murphy, Chief Executive Officer, said: \n \n \n \n   \n \n \n \"We have made a really positive start to the year and extended our long track record of consistent double-digit growth both before and since our listing in 2020. This performance reflects robust demand from both corporate and public sectors, with our customers showing a continued appetite to invest in their IT requirements despite the macroeconomic environment. \n \n \n   \n \n \n A key part of our success can be traced to the high-quality customer service that sits at the centre of our business and makes us so competitive in our markets. For this, I would like to extend my thanks to our people who do an outstanding job supporting our clients.  \n \n \n   \n \n \n The new ways of working brought about by the Covid pandemic have become entrenched and we believe the conditions we are operating in represent the new normal. Thanks to our best-in-class expertise and partnerships with the world's leading vendors, we are well placed to continue serving our customers' needs and are confident \n that the Group is well positioned for the remainder of the financial year\". \n \n \n   \n \n \n \n Financial performance \n \n \n \n \n   \n \n \n \n \n \n \n \n £'million \n \n \n \n \n \n H1 FY23 \n \n (six months ended 31 August 2022) \n \n \n \n \n \n H1 FY22 \n \n (six months ended 31 August 2021) \n \n \n (restated) \n \n \n \n \n \n % change year-on-year \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Gross invoiced income ('GII') \n \n \n 1 \n \n \n \n \n   \n \n \n \n \n \n £786.2m \n \n \n \n \n £638.2m \n \n \n \n \n 23.2% \n \n \n \n \n \n \n \n Revenue 2 \n \n \n \n \n \n £93.5m \n \n \n \n \n £73.1m \n \n \n \n \n 27.9% \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Gross profit ('GP') \n \n \n \n \n   \n \n \n \n \n Gross margin % (GP/Revenue) \n \n \n \n \n   \n \n \n \n \n GP/GII % \n \n \n \n \n   \n \n \n \n \n \n £65.5m \n \n \n   \n \n \n 70.1% \n \n \n   \n \n \n 8.3% \n \n \n \n \n £52.9m \n \n \n   \n \n \n 72.4% \n \n \n   \n \n \n 8.3% \n \n \n \n \n 23.8% \n \n \n \n \n \n \n \n Operating profit \n \n \n \n \n \n £27.3m \n \n \n \n \n £23.2m \n \n \n \n \n 17.7% \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Adjusted operating profit ('AOP') 3 \n \n \n \n \n \n   \n \n \n \n \n \n Cash \n \n \n \n \n \n £29.8m \n \n \n   \n \n \n £35.8m \n \n \n \n \n £25.0m \n \n \n   \n \n \n £42.9m \n \n \n \n \n 19.2% \n \n \n   \n \n \n (16.6%) \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Cash conversion 4 \n \n \n \n \n \n (2.8%) \n \n \n \n \n 107.5% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Earnings per share \n \n (pence) \n \n \n \n \n 9.06 \n \n \n \n \n 7.72 \n \n \n \n \n 17.4% \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Adjusted earnings per share 5 \n \n (pence) \n \n \n \n \n 10.11 \n \n \n \n \n 8.48 \n \n \n \n \n 19.2% \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Interim dividend per share \n \n (pence) \n \n \n \n \n 2.4 \n \n \n \n \n 2.0 \n \n \n \n \n 20% \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n The restatement in H1 FY22 is in respect of the Revenue and Gross margin % as described below. \n \n \n   \n \n \n \n Group highlights for the six months ended 31 August 2022 \n \n \n \n \n   \n \n \n \n -  \n GII increased 23.2% to £786.2 million (H1 FY22: £638.2 million), \n with this strong growth spread across all areas of the business - \n software, hardware and services - and generated from both the corporate and public sector customers. \n \n \n   \n \n \n -  \n Revenue increased 27.9% to £93.5 million (H1 FY22: £73.1 million - restated). Following recent guidance issued by t \n he IFRS Interpretation Committee, and \n in line with developing clear and consistent practice within our industry, \n we are now accounting for all software revenue on an agency, or \"net\" basis. Previously, the element of software revenue comprising indirect licence sales of non-cloud licences and licences not requiring critical updates had been recognised \"gross\". Hence this change in judgement has resulted in a reduction in our statutory revenue figures. The prior year revenue and cost of sales figures have been re-stated accordingly and further details of this change are set out in the Chief Financial Officer's review on page 7 and \n in note 1.5 of the interim financial statements. Our key financial metrics of gross invoiced income, gross profit, adjusted operating profit and cash conversion are unaffected by this change. \n \n \n \n   \n \n \n \n -  \n GP growth of 23.8% to £65.5 million (H1 FY22: £52.9 million), reflected across both public and corporate sectors and with increased GP per customer. \n \n \n   \n \n \n -  \n Gross margin at 70.1% (H1 FY22: 72.4%) reflects the impact of the revenue agency adjustment noted above, whereby the majority of our GII is accounted for on a net basis. \n \n \n   \n \n \n -  \n GP/GII % is the margin measure which management scrutinise most closely, and this has been maintained at a strong 8.3% considering competitive pressures and challenging macro-economic conditions. \n \n \n \n   \n \n \n \n -  \n Operating profit increased 17.7% to £27.3 million (H1 FY22: £23.2 million); noting also that H1 FY23 has a £0.7 million higher share-based payment (SBP) charge compared to H1 FY22. \n \n \n   \n \n \n -  \n AOP which management believe is a better measure of underlying profitability increased by 19.2% to £29.8 million (H1 FY22: £25.0 million). \n \n \n \n   \n \n \n \n -  \n Cash at 31 August 2022 was £35.8 million (H1 FY22: £42.9m) which is after the payment of dividends totalling £29.7 million during the past 12 months of which £24.9 million was paid during H1 FY23. \n \n \n   \n \n \n -  \n Cash conversion reduction in the first half of the financial year illustrates the sensitivity of this ratio to even small delays in payment from customers, given that it is measured over a fixed period rather than as a rolling average. However, the Group has not experienced any bad debt write offs in the period and over a longer period, we target a sustainable cash conversion ratio of 100%. Management is confident cash conversion will return to higher levels in H2 FY23. This is discussed further in the Chief Financial Officer's review on page 9. \n \n \n   \n \n \n -  \n Earnings per share increased 17.4% to 9.06 pence (H1 FY22: 7.72 pence). \n \n \n   \n \n \n -  \n Adjusted earnings per share increased 19.2% to 10.11 pence (H1 FY22: 8.48 pence), which the Board believes is a more representative measure than basic earnings per share as it removes the impact of amortisation of purchased intangibles and SBP charges. \n \n \n   \n \n \n -  \n The Board is pleased to declare an interim dividend of 2.4 pence per share which will be paid on Friday, 2 December 2022 to shareholders on the register as at Friday, 18 November 2022. This is a 20% increase over last year's interim dividend, reflecting the strong growth in AOP. \n \n \n \n   \n \n \n \n -  \n Notable business highlights in the period include: \n \n \n   \n \n \n § \n Bytes Software Services being named Microsoft Partner of the Year for Operational Excellence in 2022 from over 3,900 partner entries globally. \n \n \n § \n Winning almost 300 new customers across the Group. \n \n \n § \n Achieving 120% renewal rate from existing Group customers ( \n which measures the GP from existing customers this period compared to total GP in the prior period). \n \n \n § \n The Group reaching 58% employee participation across its Share Save plans. \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n Current trading and outlook \n \n \n \n   \n \n \n After a successful H1 FY23 with a continuation of double-digit growth across key financial metrics, the business carries strong momentum going into the second six months of FY23. We have already made a good start in this second half, although we remain \n mindful of the domestic and global macroeconomic pressures. Our \n successful strategy of acquiring new customers and then growing our share of wallet, building on our strong vendor relationships and the technical and commercial skills of our people, makes us confident that the Group is well positioned for the remainder of the financial year. \n \n \n   \n \n \n   \n \n \n \n Analyst and investor presentation \n \n \n \n \n   \n \n \n \n A presentation for analysts and investors will be held today via webcast at 9:30am (BST). Please find below access details for the webcast: \n \n \n   \n \n \n Webcast link: \n \n \n \n \n https://event.on24.com/wcc/r/3984277/2BC7C63DAB56981CD98D31952C4AFD53 \n \n \n \n \n   \n \n \n A recording of the webcast will be available after the event at \n \n \n www.bytesplc.com \n \n \n . \n \n \n   \n \n \n The announcement and presentation will be available at \n \n \n www.bytesplc.com \n \n \n from 7.00am and 9.00am (BST), respectively. \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n Enquiries \n \n \n \n \n   \n \n \n \n \n \n \n \n \n Bytes Technology Group plc \n \n \n \n \n \n Tel: +44 (0)1372 418 500 \n \n \n \n \n \n \n Neil Murphy, Chief Executive Officer \n \n \n Andrew Holden, Chief Financial Officer \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n Headland Consultancy Ltd \n \n \n \n \n \n Tel: +44 (0)20 3805 4822 \n \n \n \n \n \n \n Stephen Malthouse \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Henry Wallers \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Jack Gault \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n Forward-looking statements \n \n \n \n \n   \n \n \n \n This announcement includes statements that are, or may be deemed to be, 'forward-looking statements'. By their nature, forward-looking statements involve risk and uncertainty since they relate to future events and circumstances. Actual results may, and often do, differ materially from forward-looking statements. \n \n \n   \n \n \n Any forward-looking statements in this announcement reflect the Group's view with respect to future events as at the date of this announcement. Save as required by law or by the Listing Rules of the UK Listing Authority, the Group undertakes no obligation to publicly revise any forward-looking statements in this announcement following any change in its expectations or to reflect events or circumstances after the date of this announcement.  \n \n \n \n   \n \n \n \n \n About Bytes Technology Group plc \n \n \n \n   \n \n \n BTG is one of the UK's leading providers of IT software offerings and solutions, with a focus on cloud and security products. The Group enables effective and cost-efficient technology sourcing, adoption, and management across software services, including in the areas of security and the cloud. It aims to deliver the latest technology to a diverse range of customers across corporate and public sectors and has a long track record of delivering strong financial performance. \n \n \n   \n \n \n The Group has a primary listing on the Main Market of the London Stock Exchange and a secondary listing on the Johannesburg Stock Exchange. \n \n \n   \n \n \n \n 1 \n \n 'Gross invoiced income' ('GII') is a non-International Financial Reporting Standard (IFRS) alternative performance measure that reflects gross income billed to customers adjusted for deferred and accrued revenue items. GII has a direct influence on our movements in working capital, reflects our risks and shows the performance of our sales teams. \n \n \n   \n \n \n \n 2 \n \n 'Revenue' is reported in accordance with IFRS 15, Revenue from Contracts with Customers. Under this standard the Group is required to exercise judgment to determine whether the Group is acting as principal or agent in performing its contractual obligations. Revenue in respect of contracts for which the Group is determined to be acting as an agent is recognised on a 'net' basis (the gross profit achieved on the contract and not the gross income billed to the customer). \n \n \n   \n \n \n \n 3 \n \n 'Adjusted operating profit' is a non-IFRS alternative performance measure that excludes from operating profit the effects of significant items of expenditure which are non-recurring events or do not reflect our underlying operations. Amortisation of acquired intangible assets and share-based payment charges are both excluded. The reconciliation of adjusted operating profit to operating profit is set out in the Chief Financial Officer's review below. \n \n \n   \n \n \n \n 4 \n \n 'Cash conversion' is a non-IFRS alternative performance measure that divides cash generated from operations less capital expenditure (together, 'free cash flow') by adjusted operating profit. \n \n \n   \n \n \n \n 5 \n \n 'Adjusted earnings per share' is a non-IFRS alternative performance measure that the Group calculates by dividing the profit after tax attributable to owners of the company, adjusted for the effects of significant items of expenditure which are non-recurring events or do not reflect our underlying operations ('Adjusted earnings'), by the weighted average number of ordinary shares in issue during the period. Amortisation of acquired intangible assets and share-based payment charges are excluded in arriving at Adjusted earnings. The calculation is set out in note 15 of the financial statements. \n \n \n _________________________________________________________________________________________ \n \n \n \n   \n \n \n \n \n Chief Executive Officer's Review \n \n \n \n \n   \n \n \n \n \n A strong half year performance delivering on our strategy \n \n \n \n \n   \n \n \n \n We are delighted with the strong performance in H1 FY23, which saw the Group deliver strong growth in adjusted operating profit ('AOP') of 19.2% and gross profit ('GP') of 23.8%, driven by a pleasing 23.2% growth in gross invoiced income ('GII'). Our revenue, stated after the netting adjustment for software and external services sales, under IFRS 15, was up 27.9%. \n \n \n   \n \n \n We have maintained our track record of year-on-year growth despite ongoing uncertainty caused by the geopolitical outlook and macro-economic conditions, with our business benefiting from our wide-ranging product offering, with a significant suite of software, services and IT hardware solutions from the world's leading vendors and software publishers. \n \n \n   \n \n \n Encouragingly, we have seen continued growth from our public sector customers and corporate clients, both up year on year by above 20% for GII and GP. This is also reflected in our 22.5% growth in software GII, 36.5% in services GII, and hardware GII growing at 34.0% during H1 FY23. The double-digit growth across all our sectors and product sets reflects the continued demand from our customers to invest in resilient and efficient IT services. \n \n \n   \n \n \n Our customers' appetite for security, cloud adoption, digital transformation, hybrid datacentres and remote working solutions have underpinned our continued growth in H1 FY23. These investments increasingly take the form of annualised contracts and, accordingly, we remain confident in the Group's growth prospects going forward. This reinforces our belief in the potential for future up-selling and cross-selling opportunities into existing clients. The double-digit growth in GII and GP, reflects the buoyant and robust nature of IT spend across the UK and Ireland. \n \n \n   \n \n \n We continue to expand our IT services capability, underpinned by our Microsoft Azure Expert status, along with many other key vendor accreditations, in the provision of managed services, augmented with our own IP in the form of Quantum and Licence Dashboard. These services, together with additional cybersecurity services and consultancy, enable us to expand our relevance to clients who need support and assurance as they seek to strengthen their IT resilience and security. \n \n \n   \n \n \n We are investing in, and evolving, our internal systems to provide great user experiences and improved productivity to drive efficiencies. At the same time, with the removal of most restrictions associated with the Covid-19 pandemic, our staff have been able to re-engage face to face with customers, suppliers and partners resulting in a small increase in \n travel and entertainment costs. Nevertheless, our AOP as a percentage of GP has remained in line with target at 45.5% for the half year under review (H1 FY22: 47.3%). \n \n \n   \n \n \n We remain proud of the energy, enthusiasm and professionalism demonstrated by our people through what continues to be a challenging time for families, organisations, and society in general. Our future growth will be supported by both increasing headcount and training and development in key areas. As a management team, we are extremely pleased with the way our people continue to embrace our collaborative, team-based culture. Our flexible working regime continues to deliver positive results for our business, while also meeting our people's aspirations for a healthy work/life balance. In June 2022, we launched our second Share Save Plan which has been well received by our workforce following the success of the first plan a year before. An encouraging 509 employees (58%) now participate in one, or both, of these plans, which far exceeded our expectations. \n \n \n   \n \n \n Our partnerships with key partners go from strength to strength and we are especially pleased to have been recognised by leading industry vendors. Following Phoenix Software being awarded the prestigious accolade of Microsoft Partner of the Year for the UK for 2021, Bytes Software Services was named Microsoft Partner of the Year for Operational Excellence in 2022 from over 3,900 partner entries globally. This recognises us for supporting our customers with digital and business transformation through the adoption of Microsoft tools and automation. These awards reflect the status and high esteem which the Group has with global technology leaders and is testament to the expertise of our staff and the customer success stories that we deliver. \n \n \n \n   \n \n \n \n We remain committed to executing our strategy in a responsible manner, with sustainability rooted in everything we do. Our framework in this space aims to deliver positive impacts for our stakeholders across key themes which we have identified as most relevant for the environment in which we operate. Within each theme - financial sustainability, corporate responsibility, stakeholder engagement and good governance - we set ourselves focus areas which drive our activities. Through our staff led working groups, we allocate time and resources to various environmental initiatives, and to corporate social responsibility activities. We remain committed to supporting diversity across our business and are proud of the balance represented across our people. We continue our efforts to align with broader diversity targets to reflect the society in which we, and our stakeholders, operate. Further details in respect of our \n Environment, Social and Governance ( \n ESG) action plan are set out below. \n \n \n   \n \n \n Our dividend policy is to distribute 40% of the Group's post-tax pre-exceptional earnings to shareholders. Accordingly, we are pleased to confirm that the Board has declared an interim dividend of 2.4 pence per share which will be paid on Friday, 2 December 2022 to shareholders on the register at Friday 18 November 2022. \n \n \n   \n \n \n I wish to extend my gratitude to all my colleagues for their resilience and dedication to the business during H1 FY23. Finally, I would like to thank our clients for their support and entrusting their business with us; together, our staff and customers are our lifeblood and will always be our top priority. \n \n \n _________________________________________________________________________________________ \n \n \n \n   \n \n \n \n \n Values driven Environment, Social and Governance (ESG) actions \n \n \n \n   \n \n \n Our approach to responsible business and ESG is aimed at helping to build a sustainable future and create long term value for BTG and its stakeholders. Our strategy is underpinned by our purpose and values, which fosters an aligned culture across the organisation. During the period, we further progressed our ESG initiatives in the following ways. \n \n \n   \n \n \n \n Progressing our environmental targets \n \n \n \n We continued to \n focus on our Low Carbon Action Plan announced on 24 May 2022 through Scope 1 and 2 reductions and Scope 3 supply chain engagements. As we steadily progress these initiatives, we will be partnering with an external environmental consultant to help drive our carbon reduction plans and ensure these are recognised by the Science Based Targets initiative (SBTi) under its framework for corporate net zero target setting. During the period we completed our first Carbon Disclosure Report (CDP) submission, with this to develop going forward. Following the publication of our first Taskforce for Climate-Related Financial Disclosures (TCFD) in May of this year, we have aligned its risk and opportunity considerations into our internal processes and will report further on our TCFD at the next year-end. \n \n \n   \n \n \n \n Positively impacting our society \n \n \n \n Employee support and wellbeing remained key focus areas, even more so during the current economic challenges and the well-known increasing cost of living. Our strong culture remains a driving force behind our successful growth. This is an aspect which we continue to support through staff events and the development of our people with continued learning and training opportunities. During the period, we contributed further to the enhancement of our communities through volunteer days in support of, for example, the St. Catherine's Hospice, and donations and fundraising events, such as our Charity Matched Funding project. \n \n \n   \n \n \n \n Building on our robust corporate governance \n \n \n \n We continue to build best practice corporate governance, in line with the requirements of a dual LSE premium listed and JSE secondary listed company. We have further improved our internal controls following ongoing internal audit engagement. There were no changes to our Board and Committees composition during the period. We are satisfied that the size, structure and current composition of these remain appropriate in serving the best interests of the company and our stakeholders, while maintaining focus on our Board and senior leadership diversity targets.   \n \n \n \n   \n \n \n \n   \n \n \n Chief Financial Officer's review \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n H1 FY23 \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n \n \n H1 FY22 \n \n \n \n (restated 3 ) \n \n \n \n \n \n Change \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n \n \n \n \n Income statement \n \n \n \n \n \n \n £'m \n \n \n \n \n \n \n £'m \n \n \n \n \n \n \n % \n \n \n \n \n \n \n \n \n Gross invoiced income (GII) \n \n \n \n \n \n \n   786.2 \n \n \n \n \n \n \n   638.2 \n \n \n \n \n \n \n 23.2% \n \n \n \n \n \n \n \n GII split by product: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   Software \n \n \n \n \n   738.4 \n \n \n \n \n 602.9 \n \n \n \n \n 22.5% \n \n \n \n \n \n \n   Hardware \n \n \n \n \n   20.9 \n \n \n \n \n 15.6 \n \n \n \n \n 34.0% \n \n \n \n \n \n \n   Services internal 1 \n \n \n \n \n 13.4 \n \n \n \n \n 10.1 \n \n \n \n \n 32.7% \n \n \n \n \n \n \n   Services external 2 \n \n \n \n \n   13.5 \n \n \n \n \n 9.6 \n \n \n \n \n 40.6% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Netting adjustment 3 \n \n \n \n \n \n (692.7) \n \n \n \n \n (565.1) \n \n \n \n \n 22.6% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Revenue 3 \n \n \n \n \n \n \n   93.5 \n \n \n \n \n \n \n   73.1 \n \n \n \n \n \n \n 27.9% \n \n \n \n \n \n \n \n Revenue split by product: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   Software \n \n \n \n \n   57.8 \n \n \n \n \n 45.7 \n \n \n \n \n 26.5% \n \n \n \n \n \n \n   Hardware \n \n \n \n \n   20.9 \n \n \n \n \n 15.6 \n \n \n \n \n 34.0% \n \n \n \n \n \n \n   Services internal 1 \n \n \n \n \n 13.4 \n \n \n \n \n 10.1 \n \n \n \n \n 32.7% \n \n \n \n \n \n \n   Services external 2 \n \n \n \n \n   1.4 \n \n \n \n \n 1.7 \n \n \n \n \n (17.6%) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Gross profit (GP) \n \n \n \n \n \n \n   65.5 \n \n \n \n \n \n \n   52.9 \n \n \n \n \n \n \n 23.8% \n \n \n \n \n \n \n \n   GP / GII % \n \n \n \n \n 8.3% \n \n \n \n \n 8.3% \n \n \n \n \n \n \n \n \n \n \n \n \n \n   Gross margin % \n \n \n \n \n 70.1% \n \n \n \n \n 72.4% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Administrative expenses \n \n \n \n \n \n \n 38.2 \n \n \n \n \n \n \n 29.7 \n \n \n \n \n \n \n 28.6% \n \n \n \n \n \n \n \n Administrative expenses split: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   Employee costs \n \n \n \n \n 29.7 \n \n \n \n \n 24.8 \n \n \n \n \n 19.8% \n \n \n \n \n \n \n   Other administrative expenses \n \n \n \n \n 8.5 \n \n \n \n \n 4.9 \n \n \n \n \n 73.5% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Operating profit \n \n \n \n \n \n \n   27.3 \n \n \n \n \n \n \n   23.2 \n \n \n \n \n \n \n 17.7% \n \n \n \n \n \n \n \n Add back: \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n   Share-based payments \n \n \n \n \n 1.7 \n \n \n \n \n 1.0 \n \n \n \n \n 70.0% \n \n \n \n \n \n \n   Amortisation of acquired intangible assets \n \n \n \n \n 0.8 \n \n \n \n \n 0.8 \n \n \n \n \n 0.0% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Adjusted operating profit \n \n \n \n \n \n \n   29.8 \n \n \n \n \n \n \n   25.0 \n \n \n \n \n \n \n 19.2% \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Finance costs \n \n \n \n \n (0.3) \n \n \n \n \n (0.3) \n \n \n \n \n 0.0% \n \n \n \n \n \n \n \n Profit before tax \n \n \n \n \n \n \n   27.0 \n \n \n \n \n \n \n   22.9 \n \n \n \n \n \n 17.9% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Income tax expense \n \n \n \n \n (5.3) \n \n \n \n \n (4.6) \n \n \n \n \n 15.2%  \n \n \n \n \n \n \n   Effective tax rate \n \n \n \n \n 19.7% \n \n \n \n \n 19.9% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Profit after tax \n \n \n \n \n \n \n   21.7 \n \n \n \n \n \n \n   18.3 \n \n \n \n \n \n 18.6% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n 1 \n \n \n Provision of services to customers using the Group's own internal resources \n \n \n \n \n 2 \n \n \n Provision of services to customers using third party contractors \n \n \n \n \n 3 \n \n \n The prior year comparative is restated as discussed in the revenue section below \n \n \n   \n \n \n   \n \n \n Overview of H1 FY23 results \n \n \n   \n \n \n Our first half of FY23 has seen continued double-digit growth across all our key performance measures, reinforcing the strong start the Group has made over the past 20 months since becoming a listed entity. Whilst the country and the economy are emerging from the Covid-19 restrictions imposed over the past two years, we have seen the new ways of working with our customers and partners continue, which has enabled us to expand and evolve our offerings further in H1 FY23. \n \n \n   \n \n \n With hybrid working now widespread across our whole customer base, and heightened requirements around cyber security, customers have continued to engage with us to support their move into the cloud, or extending their presence in it, with more sophisticated and resilient security, support, and managed service solutions. This has resulted in Operating \n profit increasing by 17.7% to £27.3 million (H1 FY22: £23.2 million) and \n AOP growing by 19.2% year on year from £25.0 million to £29.8 million. The AOP excludes the impact of a \n mortisation of acquired intangible assets and share-based payment charges which do not reflect the underlying performance of the Group. \n \n \n   \n \n \n \n Gross invoiced income (GII) \n \n \n \n   \n \n \n GII reflects gross income billed to our customers, with some small adjustments for deferred and accrued items (the latter mainly relating to managed service contracts where the income is recognised over time). We believe that GII provides a more meaningful measure than revenue to evaluate our sales performance, volume of transactions and rate of growth. As an organisation we continue to focus and report on GII as a key alternative performance measure. GII has a direct influence on our movements in working capital, reflects our risks and shows the performance of our sales teams. Therefore, it is the income measure which we believe is most recognisable, relevant and useful to our customers, suppliers, investors, shareholders and staff. \n \n \n   \n \n \n GII has increased by 23.2% year-on-year, with growth spread across all areas of the business, software, services and hardware. Software remains the core focus, contributing a consistent 94% of the total GII in both the current period and prior period. The Group benefits from a substantial presence in the public sector, with continued high levels of government investment in IT technologies resulting in that part of our GII increasing by £83.4 million, up 20%, to £499.8 million (H1 FY22: £416.4 million). Our corporate GII increased by £64.6 million to £286.4 million (H1 FY22: £221.8 million), representing an even stronger rise of 29%.  \n \n \n   \n \n \n As a result, our overall GII mix has moved very slightly, although still the significant balance lies in public sector at 64% against corporate of 36%, (65% and 35%, respectively in H1 FY22). \n \n \n   \n \n \n \n Revenue \n \n \n \n   \n \n \n Revenue is reported in accordance with IFRS 15 Revenue from Contracts with Customers. Under this reporting standard, we are required to exercise judgment to determine whether the Group is acting as principal or agent in performing its contractual obligations. Revenue in respect of contracts for which the Group is determined to be acting as an agent is recognised on a 'net' basis, that is, the gross profit achieved on the contract and not the gross income billed to the customer. \n \n \n   \n \n \n Our judgement around this area has been updated since the publication of the full year accounts for the year ended 28 February 2022 following recent guidance issued by the IFRS Interpretation Committee, and in line with developing clear and consistent practise within our industry. Previously we treated most of our indirect software sales (those comprising cloud based and critical security licenses) on an agency basis, with the remainder of indirect software sales treated as principal. The change in judgement for this half year reporting period is to treat all indirect software sales on an agency basis (including those previously treated as principal). Full details are set out in note 1.5 of the interim financial statements. This has resulted in a reduction in our revenue and the prior half year and full year figures have been re-stated accordingly \n as follows. \n \n \n -  \n Current H1 (FY23 - 31 August 22) revenue and cost of sales decrease by a further £161 million compared to the agency adjustment under the previous basis for the current period. \n \n \n -  \n Prior H1 (FY22 - 31 August 21) revenue and cost of sales decrease by a further £178 million on top of the reported agency adjustment for that period. \n \n \n -  \n Prior full year (FY22 - 28 February 22) revenue and cost of sales decrease by a further £302 million on top of the reported agency adjustment for that year. \n \n \n -  \n Gross invoiced income, gross profit, operating profit, and profit before and after taxes is unchanged in all periods. The Statement of financial position, Statement of cashflows and the Statement of changes in equity also remain unchanged \n . \n \n \n For our other income streams, there has been no revision in the accounting treatment, with hardware and internal services revenue treated as principal whilst external services revenue is treated on an agency basis. \n \n \n   \n \n \n The growth in revenue of 27.9%, reflecting this revised judgement, is in line with the growth in both GII and Gross Profit. \n \n \n   \n \n \n \n Gross profit (GP) and gross profit/GII (GP/GII%) \n \n \n \n   \n \n \n Gross profit increased by 23.8% to £65.5 million (H1 FY22: £52.9 million) with impressive growth coming from across the business. \n \n \n   \n \n \n Corporate GP grew by 22% to £41.3 million (H1 FY22: £34.0 million) with the corporate GP/GII% remaining in line with the prior period at just over 14%. This reflects the continued strengthening of demand from corporate clients post the pandemic which we reported at our last year end. \n \n \n   \n \n \n In the public sector, GP grew by 28% to £24.2 million (H1 FY22: £18.9 million) with a small but significant increase in GP/GII% to 5%. This is notable considering the level of competition within tenders and the growing trend towards aggregated bids where several public sector bodies may require pricing to be submitted on a combined basis, often with many millions of GII at stake. Where new large agreements have been won at a lower margin, management is acutely focused on tracking these customers individually to ensure that the strategy delivers value for the business, and our other stakeholders by complementing them with higher margin services over the duration of the contract. This strategy is supported by the high growth in our services GII of 37%. Further, the public sector remains a low credit risk area in which to conduct a significant share of the Group's business. \n \n \n   \n \n \n Our overall GP mix remains balanced in favour of the corporate sector due to the higher GP/GII% which is generated there, contributing 63% versus the public sector's 37% (64% and 36%, respectively in H1 FY22). \n \n \n   \n \n \n Our overall GP/GII% has been maintained at 8.3% year on year. It is a key priority to now increase this measure from the current level by focusing on selling our wide range of solutions offerings and higher margin security products and maximising our vendor incentives through achievement of technical certifications. \n \n \n   \n \n \n The performance for this period again demonstrates our significant presence in both the corporate and public sectors and provides resilience, whereby each can compensate for or complement the other. \n \n \n   \n \n \n In H1 FY22 we reported 4,264 customers trading with us in that 6-month period whilst in this reporting period the figure has risen to 4,438, a net gain of 174 (up 4.1%). In H1 FY23, 97% of our GP came from customers that we also traded with last year at a renewal rate of 120% (which measures the GP from existing customers in this 6-month period compared to total GP in the equivalent prior period).   \n \n \n   \n \n \n \n Administrative expenses \n \n \n \n   \n \n \n This includes employee costs and other administrative expenses as set out below. \n \n \n   \n \n \n \n Employee costs \n \n \n \n \n   \n \n \n \n Our success in growing GII and GP continues to be as a direct result of the investments we have made over the years in our front-line sales teams, vendor and technology specialists, service delivery staff and technical support personnel, backed up by our marketing, operations and finance teams. It has been, and will remain, a carefully managed aspect of our business where we strive to invest in line with actual growth, not before. \n \n \n   \n \n \n Another successful strategy that has borne fruit is where we look to promote and expand from within, giving our people careers rather than just employment. This, in turn, has created long tenure from our employees that align with the long relationships we have with our customers, vendors, and partners. This is at the very heart of our low employee churn rate, the growth in gross profit per customer and our high customer retention rate. \n \n \n   \n \n \n Employee costs included in administrative expenses rose by 19.8% to £29.7 million (H1 FY22: £24.8 million), but excluding share-based payments, the rise was 17.6%, notably lower than the 23.8% rise in GP and reflecting the balanced and proportional way in which vital staff investments are, and will continue to be, made. During the reporting period we have seen total staff numbers rise to 871, up by 98 (13%) from the year end position of 773 on 28 February 2022. \n \n \n   \n \n \n \n Other administrative expenses \n \n \n \n   \n \n \n Other administrative expenses increased by £3.6 million to £8.5 million (H1 FY22: £4.9 million). This increase included additional spend on internal systems, marketing, professional fees, staff welfare and recruitment fees. This reflects the costs of running, and investing in, a growing organisation and in operating a listed Group, including evolving our governance structure, controls and processes with the support of our professional advisors. \n \n \n   \n \n \n Travel and entertaining expenses have not yet reverted to pre-lockdown levels but have increased compared with those experienced last year by £0.3 million. As our employees and customers return to work, we expect these costs to further increase gradually across the second half of the year. \n \n \n   \n \n \n We have come through the first half of the year without any bad debt write-offs but with a higher trade receivables balance in line with growth, and an increase in the aged profile of our trade receivables, we have increased our impairment allowance by £1.19 million to £1.94 million at 31 August 2022 from the £0.75 million level on 28 February 2022. However, we are not seeing any indication of customer non-payments and the increased allowance represents just a very small percentage of the gross receivables balance of £168.5 million. \n \n \n   \n \n \n \n Adjusted operating profit and operating profit \n \n \n \n   \n \n \n Adjusted operating profit excludes, from operating profit, the effects of: \n \n \n -   Share based payment charges as, whilst new employee share schemes are being launched, the charge to the income statement will increase each year. For example, the charge for the current period has risen to £1.7 million, compared to £1.0 million last year. The half yearly and annual charge will not flatten out until we have three years share schemes in circulation at any time year on year. At that point we will not make an adjustment for these charges in our adjusted operating profit calculation. \n \n \n -   Amortisation of acquired intangibles as this cost only appears as a consolidation item and does not arise from ordinary operating activities. \n \n \n   \n \n \n We believe that adjusted operating profit provides a more meaningful measure to evaluate our profitability, performance, and ongoing quality of earnings. Adjusted operating profit in H1 FY23 increased to £29.8 million (H1 FY22: £25.0 million), representing growth of 19.2%. Our operating profit increased from £23.2 million to £27.3 million equating to an increase of 17.7%. \n \n \n   \n \n \n Adjusted operating profit as a percentage of GP is one of the Group's key alternative performance indicators, being a measure of the Group's operational effectiveness in running day-to-day operations. We set a target of no less than 40% and we have again achieved this, with a ratio of 45.5% (H1 FY22: 47.3%). \n \n \n   \n \n \n \n Income tax expense \n \n \n \n \n   \n \n \n \n The effective rate of tax charged for the year is 19.7% of profit before tax (H1 FY22: 19.9%). Excluding the impact of the non-deductible share-based payments costs and amortisation of intangibles, the underlying adjusted rate reverts to close to the current rate of corporation tax of 19% (H1 FY22: 19%).   \n \n \n   \n \n \n \n Cashflow \n \n \n \n   \n \n \n As our customers continue their digital transformation into the cloud, our licensing models have become more subscription based, typically with monthly billing based on customer usage rather than fixed amounts per license or agreement. This has been most notable within Microsoft's Cloud Solution Provider (CSP) program and can lead to delays in payments if customers request additional analysis around their usage. This has contributed to an increase in debtor days from an average 32 in H1 FY22 to 38 in H1 FY23. \n \n \n   \n \n \n We have also seen a corresponding reduction in our cash conversion ratio from 107.5% in H1 FY22 to (2.8%) for H1 FY23, illustrating the sensitivity of this ratio to even small delays in payment from customers, given that it is measured over a fixed period rather than as a rolling average. A delay of a few days in the payment of just a small number of large customer balances at any reporting date can move cash conversion from 100% or more to 0% or lower when considering the size of our GII of £786.2 million, against the AOP of £29.8 million, and the Group does not delay payments to suppliers, when due, as a means of mitigating any such delays in customer receipts. \n \n \n   \n \n \n The first half of the year includes the two biggest supplier payment months in May and August, aligned to the public sector year end in March and the Microsoft year end in June, when many of our customers' Microsoft enterprise agreements commence or renew. As the business continues to grow its GII by 23%, the corresponding supplier payments over this six-month period have also increased. This sensitivity around timing of customer receipts against fixed timing of month end payments to suppliers is evident when looking at the Group's performance for the 5 months to July 2022 and the 7 months to September 2022 when the cash conversion was 111% and 76% respectively. \n \n \n   \n \n \n The Group targets a sustainable cash conversion ratio of 100% over a longer period and management is confident it will return to higher levels in H2 FY23. Key measures which we will undertake include better management of customer understanding around usage-based billing, development of improved systems for CSP for greater clarity and accuracy of invoicing, and a focus on switching more customers to direct debit payments. \n \n \n   \n \n \n Nevertheless, our cash position remained positive throughout the 6 months, and at 31 August 2022, our balance sheet reflects a healthy cash balance of £35.8 million, after paying final and special dividends of £24.9 million relating to the year ended 28 February 2022.  \n \n \n   \n \n \n If required, the Group does have in place an external revolving credit facility, with £40 million of funds available at 31 August 2022 which will reduce to £30 million for a further 12 months from December 2022. The facility was put in place at the time of the IPO and has never been used. \n \n \n   \n \n \n \n Interim dividend \n \n \n \n   \n \n \n As stated above, the Group's dividend policy is to distribute 40% of post-tax pre-exceptional earnings to shareholders. Accordingly, the Board is pleased to declare a gross interim dividend of 2.4 pence per share. The aggregate amount of the interim dividend expected to be paid out of retained earnings at 31 August 2022, but not recognised as a liability at the end of the half year, is £5.7 million. The salient dates applicable to the dividend are as follows:  \n \n \n   \n \n \n   \n \n \n \n \n \n \n Dividend announcement date \n \n \n \n \n Wednesday, 26 October 2022 \n \n \n \n \n \n \n Currency conversion determined and announced together with the South African (SA) tax treatment on SENS \n \n \n \n \n Monday, 14 November 2022 \n \n \n \n \n \n \n Last day to trade cum dividend (SA register) \n \n \n \n \n Tuesday, 15 November 2022 \n \n \n \n \n \n \n Commence trading ex-dividend (SA register) \n \n \n \n \n Wednesday, 16 November 2022 \n \n \n \n \n \n \n Last day to trade cum dividend (UK register) \n \n \n \n \n Wednesday, 16 November 2022 \n \n \n \n \n \n \n Commence trading ex-dividend (UK register) \n \n \n \n \n Thursday, 17 November 2022 \n \n \n \n \n \n \n Record date \n \n \n \n \n Friday, 18 November 2022 \n \n \n \n \n \n \n Payment date \n \n \n \n \n Friday, 2 December 2022 \n \n \n \n \n \n \n   \n \n \n   \n \n \n Additional information required by the Johannesburg Stock Exchange: \n \n \n \n   \n \n \n \n 1.  A dividend withholding tax of 20% will be applicable to all shareholders on the South African register unless a shareholder qualifies for exemption not to pay such dividend withholding tax. \n \n \n 2.  The dividend payment will be made from a foreign source (UK). \n \n \n 3.  At 26 October 2022, being the declaration announcement date of the dividend, the Company had a total of 239,482,333 shares in issue (with no treasury shares). \n \n \n 4.  No transfers of shareholdings to and from South Africa will be permitted between Tuesday, 15 November 2022 and Friday, 18 November 2022 (both dates inclusive). No dematerialisation or rematerialisation orders will be permitted between Wednesday, 16 November 2022 and Friday, 18 November 2022 (both dates inclusive). \n \n \n \n   \n \n \n \n \n Principal risks \n \n \n \n \n   \n \n \n \n The Group Board has overall responsibility for risk. This includes establishing and maintaining our risk management framework and internal control systems and setting our risk appetite. In doing this it receives support from our Audit Committee and executive management teams. However, through their skills and diligence, everyone in the Group plays a part in protecting our business from risk and making the most of our opportunities. \n \n \n   \n \n \n We have identified principal risks and uncertainties that could have a significant impact on the Group's operations, which we assign to four categories: financial, strategic, process and systems, and operational. BTG's management review each principal risk looking at its level of severity, where it overlaps with other risks, the speed at which it is changing, and its relevance to the Group. We consider the principal risks both individually and collectively, so that we can appreciate the interplay between them and understand the entire risk landscape.  \n \n \n   \n \n \n We are continuing to review the uncertain economic picture, exacerbated by the crisis in Ukraine, the changing market, and the development of our internal governance in evolving our principal risks and uncertainties. The current principal risks and uncertainties that the Board believes could have a significant effect on the Group's financial performance are: \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n Financial \n \n \n \n   \n \n \n \n \n \n 1 E conomic disruption \n \n \n \n \n \n \n Risk owner \n \n \n \n CEO \n \n \n   \n \n \n \n \n \n \n \n The risk \n \n \n \n This includes the impact of the crisis in Ukraine, the uncertainties caused by global economic pressures and geopolitical risk within the UK post-Brexit. \n \n \n   \n \n \n \n \n \n How we manage it \n \n \n \n We have so far continued to perform well since the start of the conflict in Ukraine, during the continuing tail of Brexit and the Covid-19 pandemic, and with increasing pressures from rising inflation. \n \n \n   \n \n \n These real-life experiences have shown us to be resilient under tough economic conditions. The diversity of our client base has also helped to maintain and increase business in this period. We are not complacent, however, and keep operations under constant review. \n \n \n   \n \n \n We currently have no borrowings and only small levels of foreign currency transactions in relation to the size of the business as a whole and hence this is helping to protect us from rising interest rates and the falling value of sterling against the dollar. \n \n \n \n \n \n \n \n The impact \n \n \n \n Major economic disruption - including the risk of continuing high inflation (see below) and higher taxes - could see reduced demand for software licensing, hardware and IT services, which could be compounded by government controls. Lower demand could also arise from reduced customer budgets, cautious spending patterns or clients 'making do' with existing IT. \n \n \n   \n \n \n Economic disruption could also affect the major financial markets, including currencies, interest rates and the cost of borrowing. \n Economic deterioration like this could have an impact on our business performance and profitability. \n \n \n   \n \n \n \n \n \n \n \n 2 Margin pressure \n \n \n \n \n \n \n Risk owner \n \n \n \n MDs of subsidiary businesses \n \n \n \n   \n \n \n \n \n \n \n \n \n The risk \n \n \n \n BTG faces pressure on profit margins from myriad directions, including increased competition, changes in vendors' commercial behaviour, certain offerings being commoditised and changes in customer mix or preferences. \n \n \n \n   \n \n \n \n \n \n \n How we manage it \n \n \n \n Profit margins are affected by many factors at customer and micro levels.  \n \n \n   \n \n \n We can control some of these factors that influence our margins, however some factors, such as economic and political ones, are beyond our control. \n \n \n   \n \n \n We aim to agree acceptable profit margins with customers upfront. \n \n \n   \n \n \n Keeping the correct level of certification by vendor, early deal registration and rebate management are methods deployed to ensure we are procuring at the lowest cost. \n \n \n   \n \n \n This risk area is reviewed monthly. \n \n \n \n   \n \n \n \n \n \n \n \n \n The impact \n \n \n \n These changes could have an impact on our business performance and profitability. \n \n \n   \n \n \n \n \n \n \n \n 3 Changes to vendors' commercial model \n \n \n \n \n \n \n Risk owner \n \n \n \n CEO \n \n \n \n   \n \n \n \n \n \n \n \n \n The risk \n \n \n \n BTG receives incentive income from our vendor partners and their distributors. This partially offsets our costs of sales but could be reduced or eliminated if the commercial models are changed significantly. \n \n \n \n   \n \n \n \n \n \n \n How we manage it \n \n \n \n We maintain a diverse portfolio of vendor products and services. Although we receive major sources of funding from specific vendor programmes, if one source declines we can offset it by gaining new certifications in, and selling, other technologies where new funding is available. \n \n \n   \n \n \n We closely monitor incentive income and make sure staff are aligned to meet vendor partner goals so that we don't lose out on these incentives. Close and regular communication with all our major vendor partners and distributors means we can manage this risk appropriately. \n \n \n \n   \n \n \n \n \n \n \n \n \n The impact \n \n \n \n These incentives are very valuable and contribute to our operational profits. Significant changes to the commercial models would put pressure on our profitability. \n \n \n \n   \n \n \n \n \n \n \n \n \n 4 Inflation \n \n \n \n \n \n \n Risk owner \n \n \n \n CFO \n \n \n   \n \n \n \n \n \n \n \n The risk \n \n \n \n Inflation in the UK, as measured by the Consumer Price Index (CPI), is currently 10.1% in the year to September 2022, which is driven by broad-based cost increases. \n \n \n   \n \n \n \n \n \n How we manage it \n \n \n \n   \n \n \n The general business outlook shows that the Covid-19 pandemic and associated lockdowns created pent-up demand for IT in our markets. \n \n \n   \n \n \n Our continued focus on software asset management means that we continue to advise customers in the most cost-effective ways to fulfil their software needs. Changes to economic conditions mean many organisations will look to IT to drive growth and/or efficiency. \n \n \n   \n \n \n Staff costs constitute the majority of our overheads, therefore our attention is focused on our staff and their ability to cope with the rising cost of living \n \n \n \n \n \n \n \n The impact \n \n \n \n This could create an environment in which customers redirect their spending from new IT projects to more pressing needs. \n \n \n   \n \n \n Wage inflation, increased fuel and energy costs have a direct impact on our underlying cost base. \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Strategic \n \n \n \n \n \n \n 5 Security of supply \n \n \n \n \n \n \n Risk owner \n \n \n \n CEO \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n The risk \n \n \n \n Overreliance on key vendors/suppliers (principally Microsoft). \n \n \n Suppliers of technology or services being unable to innovate or supply products due to global trade barriers. \n \n \n   \n \n \n \n The impact \n \n \n \n Too heavy a reliance on any one vendor could have an adverse impact on our financial performance, should that relationship break down. \n \n \n Geopolitically, global shortages of computer hardware, components and chips could occur, which might limit our, and our customers', ability to purchase hardware for internal use. This could lead to delays in customers purchasing software, which is linked to, or dependent on, the hardware being available. Reduced access to computer chips could also slow down vendor innovation, leading to delays in the creation of new technology to resell to customers. \n \n \n   \n \n \n \n \n \n How we manage it \n \n \n \n We work with our vendors as partners - it is a relationship of mutual dependency since we are their route to the end customer. We maintain excellent relationships with all our vendors, and have a particularly good relationship with Microsoft, which relies on us as a key partner in the UK. Our growth plans, which involve developing business with all our vendors, will naturally reduce the risk of relying too heavily on any single one. \n \n \n We monitor the geopolitical situation, continuously and work closely with suppliers and industry bodies to identify any potential supply chain disruptions and impacts. This enables us to remain fully informed, so that we can respond quickly should the landscape change, to ensure that we have diverse supply routes. As this risk is largely driven by geopolitical and macroeconomic factors, we maintain a watching brief so that we can react swiftly if required. \n \n \n \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n   \n \n \n \n \n \n 6 Commoditisation \n \n \n \n \n \n \n Risk owner \n \n \n \n CEO \n \n \n   \n \n \n \n \n \n \n \n The risk \n \n \n \n Competition in the UK IT market, or the commoditisation of IT products, may result in BTG being unable to win or maintain market share. \n \n \n \n \n \n How we manage it \n \n \n \n We closely watch commercial and technological developments in our markets. \n \n \n   \n \n \n Currently, there's no sign of commoditisation of any kind that would be a serious threat to the business model in the short or medium term. \n \n \n   \n \n \n \n \n \n \n \n The impact \n \n \n \n This would have a material adverse impact on our business and profitability. \n \n \n \n   \n \n \n \n A huge change would need a big shift in business operations, including a strategic overhaul of the products, solutions and services that we offer to the market. \n \n \n   \n \n \n \n \n \n \n \n 7 Disintermediation \n \n \n \n \n \n \n Risk owner \n \n \n \n CEO \n \n \n \n   \n \n \n \n \n \n \n \n \n The risk \n \n \n \n Mergers and acquisitions have consolidated our distribution network and absorbed specialist services companies. This has caused overlap with our own offerings. \n \n \n   \n \n \n A move to direct vendor resale to end customers - called disintermediation - could squeeze the market opportunity even more. \n \n \n \n   \n \n \n \n \n \n \n How we manage it \n \n \n \n The threat of disintermediation by vendors has always been present. We minimise this threat by continuing to increase the added value we bring to customers directly. This reduces clients' desire to deal directly with vendors. \n \n \n   \n \n \n Equally, vendors cannot engage with millions of organisations globally without the sort of well-established network of intermediaries that we have. \n \n \n \n   \n \n \n \n \n \n \n \n \n The impact \n \n \n \n More consolidation could lead to less competition between vendors and cause prices to value-added resellers, like us, to rise and service levels to fall. Direct resale to customers could also increase. \n \n \n   \n \n \n This could erode reseller margins, given the purchase cost is less for the distributor than the reseller. This could reduce our market, margin and profits. \n \n \n   \n \n \n \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n \n \n 8 Relevance and emerging technology \n \n \n \n \n \n \n Risk owner \n \n \n \n CEO \n \n \n   \n \n \n \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n \n \n The risk \n \n \n \n As the technology and security markets evolve rapidly and become more complex, the risk exists that we might not keep pace and so fail to be considered for new opportunities. \n \n \n \n \n \n How we manage it \n \n \n \n We stay relevant to our customers by continuing to offer them expert advice and innovative solutions; specialising in high-demand areas; holding superior levels of certification; maintaining our good reputation and helping clients find the right solutions in a complex, often confusing IT marketplace. \n \n \n   \n \n \n We defend our position by keeping abreast of new technologies and the innovators who develop them. We do this, for example, by running a Cyber Accelerator Programme for new and emerging solution providers, joining industry forums and sitting on new technology committees. By identifying and developing bonds with emerging companies, we maintain good relationships with them as they grow and give our customers access to their technologies. \n \n \n   \n \n \n \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n \n \n The impact \n \n \n \n As customers have wide choice and endless opportunities to research options, if we do not offer cutting-edge products and relevant services, we could lose sales and customers, which would affect our profitability. \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Processes and systems \n \n \n \n \n \n \n 9 Keeping pace with digital change \n \n \n \n \n \n \n Risk owner \n \n \n \n CEO \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n The risk \n \n \n \n Failure to transform our internal IT and business processes, so that we cannot keep pace with, nor support, our customers effectively. \n \n \n   \n \n \n \n The impact \n \n \n \n If we could not support or interact with our customers in the way they wanted, it could damage our relationships with them, affect sales and damage our profitability. \n \n \n \n \n \n How we manage it \n \n \n \n To make sure we keep our business processes and systems in the best shape, we draw on insights from our customers, the market and all levels of our business. Transformation working groups - including members of our Group technical, IT and security teams - work in partnership with our operating companies to identify strategies and solutions. Transformation work is then run, managed and monitored locally. \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Operational \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n 10 Cyberthreats - direct and indirect \n \n \n \n \n \n \n Risk owner \n \n \n \n Chief Information Security Officer \n \n \n   \n \n \n \n \n \n \n \n The risk \n \n \n \n Breaches in the security of electronic and other confidential information that BTG collects, processes, stores and transmits may give rise to significant liabilities and reputational damage. \n \n \n   \n \n \n \n \n \n How we manage it \n \n \n \n We use intelligence-driven analysis, including research by our internal digital forensics team, to protect ourselves. \n \n \n   \n \n \n This work provides insights into vulnerable areas and the effects of any breaches, which allow us to strengthen our security controls. \n \n \n   \n \n \n We have established controls that separate customer systems and mitigate cross-breaches. Our cyberthreat-level system also lets us tailor our approach and controls in line with any intelligence we receive. \n \n \n   \n \n \n \n \n \n \n \n The impact \n \n \n \n If a hacker accessed our IT systems, they could infiltrate one or more of our customer areas. This could provide indirect access, or the intelligence required to compromise or access a customer environment. \n \n \n   \n \n \n This would increase the chance of first- and third-party risk liability, with the possible effects of regulatory breaches, loss of confidence in our business, reputational damage and potential financial penalties. \n \n \n   \n \n \n \n \n \n \n \n 11 Technology failure \n \n \n \n \n \n \n Risk owner \n \n \n \n CFO \n \n \n \n   \n \n \n \n \n \n \n \n \n The risk \n \n \n \n Any failure or disruption of BTG's IT infrastructure or business applications may negatively affect us. \n \n \n \n   \n \n \n \n \n \n \n How we manage it \n \n \n \n Our Chief Technology Officer and Head of IT effectively manage and oversee our IT infrastructure, network, systems and business applications. \n \n \n   \n \n \n Regular IT audits have identified areas of improvements and ongoing reviews make sure we have a high level of compliance and uptime. This means our systems are highly effective and fit for purpose. \n \n \n   \n \n \n For business continuity, we use different locations, sites and solutions to limit the impact of service outage to customers. Where possible, we use active resilience solutions - designed to withstand or prevent loss of services in an unplanned event - rather than just disaster-recovery solutions and facilities, which restore normal operations after an incident. \n \n \n \n   \n \n \n \n \n \n \n \n \n The impact \n \n \n \n Systems and IT infrastructure are key to our operational effectiveness. Failures or significant downtime could hinder our ability to serve customers, sell solutions or invoice. \n \n \n   \n \n \n Major outages in systems that provide customer services could limit clients' ability to extract crucial information from their systems or manage their software. \n \n \n   \n \n \n \n \n \n \n \n   \n \n \n \n   \n \n \n \n \n \n 12 Attract and retain staff \n \n \n \n \n \n \n Risk owner \n \n \n \n CEO \n \n \n   \n \n \n \n \n \n \n \n The risk \n \n \n \n The success of BTG's business and growth strategy depends on our ability to attract, recruit and retain a talented employee base. \n Being able to offer competitive remuneration is an important part of this. \n \n \n   \n \n \n Three factors are affecting this: \n \n \n · \n The Consumer Price Index is driving wage inflation \n \n \n · \n There is a skills s \n hortage in the IT sector \n \n \n · \n With remote or hybrid working becoming the norm, potential employees in traditionally lower-paid geographical regions are able to work remotely in higher-paying areas like London. \n \n \n   \n \n \n \n \n \n How we manage it \n \n \n \n We continually strive to be the best company to work for in our sector. One of the ways we manage this risk is by growing our own talent pools. We've used this approach successfully in our graduate intakes for sales, for example. BTG also runs an extensive apprenticeship programme to create a new security skillset. \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n The impact \n \n \n \n Excessive wage inflation could either drive up costs or mean we are unable to attract or retain the talent pool we need to continue to deliver our planned growth. \n \n \n   \n \n \n \n \n \n \n . \n \n \n   \n \n \n \n Going concern disclosure \n \n \n \n The Interim Results for the Group for H1 FY23 have been prepared on the Going Concern basis following the process undertaken as set out in note 1.2. Based on the analysis set out in that note, the Group has sufficient liquidity headroom through the forecast period. The directors therefore have reasonable expectation that the Group has the financial resources to enable it to continue in operational existence for the period up to 28 February 2024. Accordingly, the directors conclude it to be appropriate that the consolidated financial statements be prepared on a going concern basis. \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n   \n \n \n \n \n Responsibility statement pursuant to the Financial Services Authority's Disclosure and Transparency Rule 4 (DTR 4) \n \n \n \n Each director of the company confirms that (solely for the purpose of DTR 4) to the best of his/her knowledge: \n \n \n   \n \n \n · \n The financial information in this document, prepared in accordance with the applicable UK law and applicable accounting standards, gives a true and fair view of the assets, liabilities, financial position, and result of the Group taken as a whole. \n \n \n   \n \n \n · \n The Chief Executive Officer's and Chief Financial Officer's reviews include a fair review of the development and performance of the business and the position of the Group taken as a whole, together with a description of the principal risks and uncertainties that they face. \n \n \n   \n \n \n On behalf of the Board \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n Neil Murphy  Andrew Holden   \n \n \n Chief Executive Officer  Chief Financial Officer \n \n \n   \n \n \n 26 October 2022 \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n Interim condensed consolidated statement of profit or loss \n \n \n \n \n \n For the six months ended 31 August \n \n \n \n \n   \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n 31 August \n \n \n \n \n \n \n 31 August \n \n \n \n \n \n \n 28 February \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n 2022 \n \n \n \n \n \n \n 2021 \n \n \n \n \n \n \n 2022 \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n Unaudited \n \n \n \n \n \n \n Unaudited (restated) \n \n \n \n \n \n \n Audited (restated) \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n Note \n \n \n \n \n \n £'000 \n \n \n \n \n \n \n £'000 \n \n \n \n \n \n \n £'000 \n \n \n \n \n \n \n \n \n Revenue \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 3 \n \n \n \n \n 93,533 \n \n \n \n \n 73,072 \n \n \n \n \n 145,836 \n \n \n \n \n \n \n Cost of sales \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (28,045) \n \n \n \n \n (20,202) \n \n \n \n \n (38,475) \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n \n \n Gross profit \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n 65,488 \n \n \n \n \n \n \n 52,870 \n \n \n \n \n \n \n 107,361 \n \n \n \n \n \n \n \n Administrative expenses \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (37,000) \n \n \n \n \n (29,688) \n \n \n \n \n (65,057) \n \n \n \n \n \n \n Increase in loss allowance on trade receivables \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 7 \n \n \n \n \n (1,193) \n \n \n \n \n (15) \n \n \n \n \n (149) \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n \n \n Operating profit \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n 27,295 \n \n \n \n \n \n \n 23,167 \n \n \n \n \n \n \n 42,155 \n \n \n \n \n \n \n \n Finance income \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n -  \n \n \n \n \n 6 \n \n \n \n \n -  \n \n \n \n \n \n \n Finance costs \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (255) \n \n \n \n \n (303) \n \n \n \n \n (589) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n \n Finance costs - net \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (255) \n \n \n \n \n (297) \n \n \n \n \n (589) \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n \n \n Profit before taxation \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n 27,040 \n \n \n \n \n \n \n 22,870 \n \n \n \n \n \n \n 41,566 \n \n \n \n \n \n \n \n Income tax expense \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 4 \n \n \n \n \n (5,333) \n \n \n \n \n (4,552) \n \n \n \n \n (8,712) \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n \n \n Profit after taxation \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n 21,707 \n \n \n \n \n \n \n 18,318 \n \n \n \n \n \n \n 32,854 \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n \n \n Profit for the period attributable to owners of the parent company \n \n \n \n \n \n \n 21,707 \n \n \n \n \n \n \n 18,318 \n \n \n \n \n \n \n 32,854 \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n ====== \n \n \n \n \n ====== \n \n \n \n \n ====== \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Pence \n \n \n \n \n \n \n Pence \n \n \n \n \n \n \n Pence \n \n \n \n \n \n \n \n Basic earnings per ordinary share \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 15 \n \n \n \n \n 9.06 \n \n \n \n \n 7.72 \n \n \n \n \n 13.72 \n \n \n \n \n \n \n Diluted earnings per ordinary share \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 15 \n \n \n \n \n 8.74 \n \n \n \n \n 7.54 \n \n \n \n \n 13.42 \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n ====== \n \n \n \n \n ====== \n \n \n \n \n ====== \n \n \n \n \n \n \n   \n \n \n The consolidated statement of profit or loss has been prepared on the basis that all operations are continuing operations. \n \n \n   \n \n \n There are no items to be recognised in other comprehensive income and hence, the Group has not presented a statement of other comprehensive income. \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Interim condensed consolidated statement of financial position \n \n \n \n \n   \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n As at \n \n \n \n \n 31 August \n \n \n \n \n \n \n As at \n \n \n \n \n 31 August \n \n \n \n \n \n \n As at \n \n \n \n \n 28 February \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n 2022 \n \n \n \n \n \n \n 2021 \n \n \n \n \n \n \n 2022 \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n Unaudited \n \n \n \n \n \n \n Unaudited \n \n \n \n \n \n \n Audited \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n Note \n \n \n \n \n \n £'000 \n \n \n \n \n \n \n £'000 \n \n \n \n \n \n \n £'000 \n \n \n \n \n \n \n \n \n Assets \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n Non-current assets \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Property, plant and equipment \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 8,128 \n \n \n \n \n 7,965 \n \n \n \n \n 8,049 \n \n \n \n \n \n \n Right-of-use assets \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 856 \n \n \n \n \n 1,002 \n \n \n \n \n 928 \n \n \n \n \n \n \n Intangible assets \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 5 \n \n \n \n \n 42,027 \n \n \n \n \n 43,638 \n \n \n \n \n 42,832 \n \n \n \n \n \n \n Contract assets \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 109 \n \n \n \n \n 292 \n \n \n \n \n 125 \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n \n \n Total non-current assets \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n 51,120 \n \n \n \n \n \n \n 52,897 \n \n \n \n \n \n \n 51,934 \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n \n \n Current assets \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Inventories \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 45 \n \n \n \n \n 258 \n \n \n \n \n 96 \n \n \n \n \n \n \n Contract assets \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 4,206 \n \n \n \n \n 4,864 \n \n \n \n \n 6,591 \n \n \n \n \n \n \n Trade and other receivables \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 7 \n \n \n \n \n 176,674 \n \n \n \n \n 101,952 \n \n \n \n \n 157,610 \n \n \n \n \n \n \n Current tax asset \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n -  \n \n \n \n \n -  \n \n \n \n \n 219 \n \n \n \n \n \n \n Cash and cash equivalents \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 8 \n \n \n \n \n 35,756 \n \n \n \n \n 42,854 \n \n \n \n \n 67,118 \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n \n \n Total current assets \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n 216,681 \n \n \n \n \n \n \n 149,928 \n \n \n \n \n \n \n 231,634 \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n \n \n Total assets \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n 267,801 \n \n \n \n \n \n \n 202,825 \n \n \n \n \n \n \n 283,568 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n ====== \n \n \n \n \n ====== \n \n \n \n \n ====== \n \n \n \n \n \n \n \n Liabilities \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n Non-current liabilities \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Lease liabilities \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (897) \n \n \n \n \n (1,085) \n \n \n \n \n (992) \n \n \n \n \n \n \n Contract liabilities \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (1,769) \n \n \n \n \n (2,371) \n \n \n \n \n (1,495) \n \n \n \n \n \n \n Deferred tax liabilities \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (787) \n \n \n \n \n (1,135) \n \n \n \n \n (1,189) \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n \n \n Total non-current liabilities \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n (3,453) \n \n \n \n \n \n \n (4,591) \n \n \n \n \n \n \n (3,676) \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n \n \n Current liabilities \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Trade and other payables \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 9 \n \n \n \n \n (199,585) \n \n \n \n \n (150,843) \n \n \n \n \n (217,612) \n \n \n \n \n \n \n Contract liabilities \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (18,265) \n \n \n \n \n (10,453) \n \n \n \n \n (14,528) \n \n \n \n \n \n \n Current tax liabilities \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (239) \n \n \n \n \n (495) \n \n \n \n \n -  \n \n \n \n \n \n \n Lease liabilities \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (188) \n \n \n \n \n (184) \n \n \n \n \n (185) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n \n \n Total current liabilities \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n (218,277) \n \n \n \n \n \n \n (161,975) \n \n \n \n \n \n \n (232,325) \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n \n \n Total liabilities \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n (221,730) \n \n \n \n \n \n \n (166,566) \n \n \n \n \n \n \n (236,001) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n \n \n Net assets \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n 46,071 \n \n \n \n \n \n \n 36,259 \n \n \n \n \n \n \n 47,567 \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n ====== \n \n \n \n \n ====== \n \n \n \n \n ====== \n \n \n \n \n \n \n \n Equity \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Share capital \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 2,395 \n \n \n \n \n 2,395 \n \n \n \n \n 2,395 \n \n \n \n \n \n \n Share premium \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 633,636 \n \n \n \n \n 633,636 \n \n \n \n \n 633,636 \n \n \n \n \n \n \n Other reserves \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 4,775 \n \n \n \n \n 1,510 \n \n \n \n \n 3,072 \n \n \n \n \n \n \n Merger reserve \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (644,375) \n \n \n \n \n (644,375) \n \n \n \n \n (644,375) \n \n \n \n \n \n \n Retained earnings \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 49,640 \n \n \n \n \n 43,093 \n \n \n \n \n 52,839 \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n \n \n Total equity \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n 46,071 \n \n \n \n \n \n \n 36,259 \n \n \n \n \n \n \n 47,567 \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n ====== \n \n \n \n \n ====== \n \n \n \n \n ====== \n \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Interim condensed consolidated statement of changes in equity (unaudited) \n \n \n \n \n   \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n Attributable to owners of the company \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n Share \n \n \n \n \n \n \n Share \n \n \n \n \n \n \n Other \n \n \n \n \n \n \n Merger \n \n \n \n \n \n \n Retained \n \n \n \n \n \n \n Total \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n capital \n \n \n \n \n \n \n premium \n \n \n \n \n \n \n reserves \n \n \n \n \n \n \n reserve \n \n \n \n \n \n \n earnings \n \n \n \n \n \n \n equity \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n Note \n \n \n \n \n \n £'000 \n \n \n \n \n \n \n £'000 \n \n \n \n \n \n \n £'000 \n \n \n \n \n \n \n £'000 \n \n \n \n \n \n \n £'000 \n \n \n \n \n \n \n £'000 \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n Balance at 1 March 2022 \n \n \n \n \n \n \n   \n \n \n \n \n \n \n 2,395 \n \n \n \n \n \n \n 633,636 \n \n \n \n \n \n \n 3,072 \n \n \n \n \n \n \n (644,375) \n \n \n \n \n \n \n 52,839 \n \n \n \n \n \n \n 47,567 \n \n \n \n \n \n \n \n Total comprehensive income for the period \n \n \n \n \n - \n \n \n \n \n - \n \n \n \n \n - \n \n \n \n \n - \n \n \n \n \n 21,707 \n \n \n \n \n 21,707 \n \n \n \n \n \n \n Dividends paid  12(b) \n \n \n \n \n - \n \n \n \n \n - \n \n \n \n \n - \n \n \n \n \n - \n \n \n \n \n (24,906) \n \n \n \n \n (24,906) \n \n \n \n \n \n \n Share-based payment transactions  14 \n \n \n \n \n - \n \n \n \n \n - \n \n \n \n \n 1,702 \n \n \n \n \n - \n \n \n \n \n - \n \n \n \n \n 1,702 \n \n \n \n \n \n \n Deferred tax \n \n \n \n \n - \n \n \n \n \n - \n \n \n \n \n 1 \n \n \n \n \n - \n \n \n \n \n - \n \n \n \n \n 1 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n \n \n Balance at 31 August 2022 \n \n \n \n \n \n \n 2,395 \n \n \n \n \n \n \n 633,636 \n \n \n \n \n \n \n 4,775 \n \n \n \n \n \n \n (644,375) \n \n \n \n \n \n \n 49,640 \n \n \n \n \n \n \n 46,071 \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n ====== \n \n \n \n \n ====== \n \n \n \n \n ====== \n \n \n \n \n ====== \n \n \n \n \n ====== \n \n \n \n \n ====== \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n Balance at 1 March 2021 \n \n \n \n \n \n \n 2,395 \n \n \n \n \n \n \n 633,636 \n \n \n \n \n \n \n 317 \n \n \n \n \n \n \n (644,375) \n \n \n \n \n \n \n 24,775 \n \n \n \n \n \n \n 16,748 \n \n \n \n \n \n \n \n Total comprehensive income for the period \n \n \n \n \n - \n \n \n \n \n - \n \n \n \n \n - \n \n \n \n \n - \n \n \n \n \n 18,318 \n \n \n \n \n 18,318 \n \n \n \n \n \n \n Dividends paid \n \n \n \n \n 12(b) \n \n \n \n \n - \n \n \n \n \n - \n \n \n \n \n - \n \n \n \n \n - \n \n \n \n \n - \n \n \n \n \n - \n \n \n \n \n \n \n Share-based payment transactions \n \n \n \n \n 14 \n \n \n \n \n - \n \n \n \n \n - \n \n \n \n \n 1,021 \n \n \n \n \n - \n \n \n \n \n - \n \n \n \n \n 1,021 \n \n \n \n \n \n \n Deferred tax \n \n \n \n \n \n   \n \n \n \n \n \n - \n \n \n \n \n - \n \n \n \n \n 172 \n \n \n \n \n - \n \n \n \n \n - \n \n \n \n \n 172 \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n \n \n Balance at 31 August 2021 \n \n \n \n \n \n \n   \n \n \n \n \n \n \n 2,395 \n \n \n \n \n \n \n 633,636 \n \n \n \n \n \n \n 1,510 \n \n \n \n \n \n \n (644,375) \n \n \n \n \n \n \n 43,093 \n \n \n \n \n \n \n 36,259 \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n ====== \n \n \n \n \n ====== \n \n \n \n \n ====== \n \n \n \n \n ====== \n \n \n \n \n ====== \n \n \n \n \n ====== \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Balance at 1 March 2021 \n \n \n \n \n \n \n   \n \n \n \n \n \n \n 2,395 \n \n \n \n \n \n \n 633,636 \n \n \n \n \n \n \n 317 \n \n \n \n \n \n \n (644,375) \n \n \n \n \n \n \n 24,775 \n \n \n \n \n \n \n 16,748 \n \n \n \n \n \n \n \n Total comprehensive income for the period \n \n \n \n \n - \n \n \n \n \n - \n \n \n \n \n - \n \n \n \n \n - \n \n \n \n \n 32,854 \n \n \n \n \n 32,854 \n \n \n \n \n \n \n Dividends paid \n \n \n \n \n 12(b) \n \n \n \n \n - \n \n \n \n \n - \n \n \n \n \n - \n \n \n \n \n - \n \n \n \n \n (4,790) \n \n \n \n \n (4,790) \n \n \n \n \n \n \n Share-based payment transactions \n \n \n \n \n 14 \n \n \n \n \n - \n \n \n \n \n - \n \n \n \n \n 2,563 \n \n \n \n \n - \n \n \n \n \n - \n \n \n \n \n 2,563 \n \n \n \n \n \n \n Deferred tax \n \n \n \n \n \n   \n \n \n \n \n \n - \n \n \n \n \n - \n \n \n \n \n 192 \n \n \n \n \n - \n \n \n \n \n - \n \n \n \n \n 192 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n \n \n Balance at 28 February 2022 \n \n \n \n \n \n \n   \n \n \n \n \n \n \n 2,395 \n \n \n \n \n \n \n 633,636 \n \n \n \n \n \n \n 3,072 \n \n \n \n \n \n \n (644,375) \n \n \n \n \n \n \n 52,839 \n \n \n \n \n \n \n 47,567 \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n ====== \n \n \n \n \n ====== \n \n \n \n \n ====== \n \n \n \n \n ====== \n \n \n \n \n ====== \n \n \n \n \n ====== \n \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Interim condensed consolidated statement of cash flows \n \n \n \n \n   \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n Period ended 31 August \n \n \n \n \n 2022 \n \n \n \n \n \n \n Period ended 31 August \n \n \n \n \n 2021 \n \n \n \n \n \n \n Year ended 28 February \n \n \n \n \n 2022 \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n Unaudited \n \n \n \n \n \n \n Unaudited \n \n \n \n \n \n \n Audited \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n Note \n \n \n \n \n \n £'000 \n \n \n \n \n \n \n £'000 \n \n \n \n \n \n \n £'000 \n \n \n \n \n \n \n \n \n Cash flows from operating activities \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Cash (utilised by)/generated from operations \n \n \n \n \n 10 \n \n \n \n \n (238) \n \n \n \n \n 26,975 \n \n \n \n \n 61,719 \n \n \n \n \n \n \n Interest received \n \n \n \n \n \n \n \n \n \n \n \n - \n \n \n \n \n 6 \n \n \n \n \n - \n \n \n \n \n \n \n Interest paid \n \n \n \n \n \n \n \n \n \n \n \n (229) \n \n \n \n \n (273) \n \n \n \n \n (532) \n \n \n \n \n \n \n Income taxes paid \n \n \n \n \n \n \n \n \n \n \n \n (5,276) \n \n \n \n \n (4,338) \n \n \n \n \n (9,138) \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n \n \n Net cash (outflow)/inflow from operating activities \n \n \n \n \n \n \n \n \n \n \n \n \n \n (5,743) \n \n \n \n \n \n \n 22,370 \n \n \n \n \n \n \n 52,049 \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n \n \n Cash flows from investing activities \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Payments for property, plant and equipment \n \n \n \n \n \n \n \n \n \n \n \n (595) \n \n \n \n \n (111) \n \n \n \n \n (617) \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n \n \n Net cash outflow from investing activities \n \n \n \n \n \n \n \n \n \n \n \n \n \n (595) \n \n \n \n \n \n \n (111) \n \n \n \n \n \n \n (617) \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n ------------ \n \n \n \n \n \n \n \n \n Cash flows from financing activities \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n &nbsp...

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