ChallengerX Plc Management Accounts
April 28 2023 - 7:29AM
UK Regulatory
TIDMCXS
28 April 2023
ChallengerX plc
("ChallengerX", "CX" or the "Company")
Management accounts for the quarters ended 31 March 2023 and 31 December 2022
ChallengerX (AQUIS: CXS), the trading company with principal activity of
employing both traditional and non-traditional marketing strategies to rapidly
"professionalise" amateur and semi-professional sports clubs around the world
announces its unaudited management accounts reports for the quarters ended 31
March 2023 and 31 December 2022.
This announcement contains inside information for the purposes of the UK Market
Abuse Regulation and the Directors of the Company are responsible for the
release of this announcement.
For further information, please contact:
Enquiries:
ChallengerX plc
John May, Chairman jmay@city-westminster.com
Stuart Adam, CFO sjadam@city-westminster.com
First Sentinel Corporate
AQSE Corporate Adviser
Brian Stockbridge / Jenny Liu +44 7876 888 011
Directors Statement
Introduction
ChallengerX plc (the "Company" or "ChallengerX") is an investment company
quoted on the Aquis Stock Exchange ("AQSE") Growth Market. The Company was
incorporated on 7 June 2021 and its shares were admitted to trading on 23
December 2021.
Activities during the periods
The company continued to advance its development of a platform for the
promotion and marketing of sports clubs in both a traditional and
non-traditional way. Expenditure was particularly heavy in the quarter ended 31
December 2022 in terms of principally programmers costs which, as an accounting
policy, are written off as incurred. Further development and related costs will
be required as clients are brought on board.
In February 2023 the Company announced it had raised a total of GBP 250,000
(gross) from Aalto Capital AB, through the issue of 55,555,556 new ordinary
shares pursuant to a subscription letter. The payment relating to the fundraise
hasn't yet been fully received by the Company. The outstanding amount at 31
March 2023 of £250,000 is shown as the account of "Trade and other receivables"
on the Statement of Financial Position. As at the date of this report, the
Company has received £50,000. The Company is in ongoing conversations with the
investor to receive the remaining balance.
The Directors confirm that this current shortfall in the fundraise does not
impact the working capital position of the Company.
The Company also announced that it granted Aalto Capital AB a total of
55,555,556 warrants to subscribe for new ordinary shares of GBP 0.001 each
('Warrants'). The Warrants are exercisable at 0.45 pence per ordinary share,
and for a period of 5 years from the date of issue.
Outlook
The development of the marketing platform as mentioned above will require more
expenditure and it is hoped that recoveries of monies sequestrated by the
French Authorities from the subsidiary SportsX SAS will assist in this regard.
Meanwhile the company will look to supplement its income by applying itself to
other project opportunities and will continue to review its business plan and
strategy by looking at transactions in other sectors that could lead to a
reverse transaction whilst keeping its establishment overheads as lean as
possible.
John May
Chairman
Unaudited Statement of Comprehensive Income for the quarters ended 31 March
2023 and 31 December 2022
31 March 31 December
2023 2022
£'000 £'000
Revenue - 1
Administrative expenses (46) (162)
Operating loss (46) (161)
Loss before tax (46) (161)
- -
Taxation
Loss for the period (46) (161)
Total comprehensive loss (46) (161)
(Loss) per share (pence) from continuing operations (0.013) (0.056)
attributable to
owners of the Company - Basic
Statement of Financial Position As at quarters ended 31 March 2023 and 31
December 2022
31 March 2023 31 December 2022
£'000 £'000
Current assets
Trade and other receivables 256 8
Cash and cash equivalents 31 92
Total current assets 287 100
Total assets 287 100
Current liabilities
Trade and other payables 56 58
Total current liabilities 56 58
Net assets 231 42
Capital and reserves
Share capital 343 288
Share premium 1,410 1,230
Retained earnings (1,522) (1,476)
Total equity 231 42
Statement of Changes in Equity
For the quarters ended 31 March 2023 and 31 December 2022
Share Share Retained Total
capital premium earnings
£'000 £'000 £'000 £'000
As at 30 September 2022 288 1,230 (1,315) 203
Loss for quarter ended 31 - - (161) (161)
December 2022
Total Comprehensive Income - - (161) (161)
As at 31 December 2022 288 1,230 (1,476) 42
Allotment of ordinary shares - 235
55 180
Loss for the quarter ended 31
March 2023 - - (46) (46)
Total Comprehensive Income - - (46) (46)
As at 31 March 2023 343 1,410 (1,522) 231
Statement of Cash Flows
For the quarter ended 31 March 2023 and 31 December 2022
31 March 2023 31 December 2022
£'000 £'000
Cash from operating activities
Loss before tax (46) (161)
Adjustments for:
(Increase) in trade and other receivables (248) (1)
(Decrease)/Increase in trade and other (2) 18
payables
Net cash used in operating activities (296) (144)
Cash flows from financing activities
Proceeds from issue of shares (net of 235 -
issue costs)
Net cash from financing activities 235 -
Net cash flow for the period (61) (144)
Cash and cash equivalents at beginning of 92 236
period
Cash and cash equivalents at end of period 31 92
Net change in cash and cash equivalents (61) (144)
Cash and cash equivalents comprise:
Cash at bank and in hand 31 92
31 92
Notes to the financial statements
1. General information
ChallengerX plc is a public limited company limited by shares and was
incorporated in England on 7 June 2021 with company number 13440398. Its
registered office is 16 Great Queen Street, London, WC2B 5DG.
The Company's shares are traded on the Aquis Stock Exchange Growth Market under
symbol CXS and ISIN number
GB00BMD0WG01.
The Company was first incorporated on 7 June 2021.
The information for periods ended 31 December 2022 and 31 March 2023 are
unaudited.
2. Basis of Preparation
The quarterly management accounts of ChallengerX plc have been prepared in
compliance with United Kingdom Accounting Standards, including Financial
Reporting Standard 102, "The Financial Reporting Standard applicable in the
United Kingdom and the Republic of Ireland" ("FRS 102") and the Companies Act
2006.
These management accounts are prepared on a going concern basis, under the
historical cost convention, as modified by the recognition of listed
investments at fair value.
The financial statements are presented in Pounds Sterling, which is the
Company's presentation and functional
currency.
The preparation of the financial statements requires the use of certain
critical accounting estimates. It also requires management to exercise its
judgment in the process of applying the Company's accounting policies. The
areas involving a higher degree of judgment and complexity, or areas where
assumptions and estimates are significant to the financial statements are
disclosed in Note 3 to the financial statements.
The financial statements have been prepared on the historical cost basis and
are presented in £'000 unless
otherwise stated.
3. Going Concern
As at 31 March 2023, the Company had cash of £31,000. As a newly established
trading business, the Company has limited operating cash flow and is dependent
on the performance of its trading and its cash balances for its working capital
requirements. As at the date of this report, the Company had approximately £
71,000 cash at bank.
The Directors continue to seek recovery of the sequestered funds held by the
Administrator of it's subsidiary, SportsX, which are believed to amount to
approximately £0.6m.
For this reason, it continues to adopt the going concern basis in preparing the
financial statements.
4. Earnings per share
31 March 31 December
2023 2022
Earnings £'000 £'000
Loss for the quarters ended (46) (161)
Number of shares
Number of shares for the purposes of basic and 343,140,556 287,585,000
diluted earnings per share
Earnings per share (pence) (0.013) (0.056)
END
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