ChallengerX Plc Management accounts for the quarters ended 30 June 2023 and 31 March 2023
July 28 2023 - 11:15AM
UK Regulatory
TIDMCXS
28 July 2023
ChallengerX plc
("ChallengerX", "CX" or the "Company")
Management accounts for the quarters ended 30 June 2023 and 31 March 2023
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 30
June 2023 and 31 March 2023.
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 +44 7876 888 011
AQSE Corporate Adviser
Brian Stockbridge / Gabrielle Cordeiro
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. In
particular the company worked hard on adding to its offerings for the upcoming
soccer seasons starting in the Autumn.
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 30 June
2023 of £168,000 is included in "Trade and other receivables" on the Statement
of Financial Position. As at the date of this report, the Company has still only
received £82,000. The Company is in ongoing conversations with the investor to
receive the remaining balance. The Managing Director of Aalto unfortunately died
before this transaction could be completed which has delayed conversations.
The Directors confirm that this current shortfall in the fundraise does not
impact the working capital position of the Company.
The Company had announced that it had 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 to be exercisable at 0.45 pence per ordinary share,
and for a period of 5 years from the date of issue. Due to the non-completion of
the subscription amount in a timely way these warrants may be withdrawn to the
company's Treasury.
Outlook
The development of the marketing platform as mentioned above will require more
expenditure. Additional funds will be sought for this. Meanwhile the company
continues 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 complimentary sectors that could lead even 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 30 June 2023 and 31 March 2023
30 June2023 31 March2023
£'000 £'000
Revenue -
Administrative expenses (61) (46)
Operating loss (61) (46)
Loss before tax (61) (46)
Taxation - -
Loss for the period (61) (46)
Total comprehensive loss (61) (46)
(Loss) per share (pence) from continuing (0.018) (0.013)
operations attributable toowners of the Company
- Basic
Statement of Financial Position
As at quarters ended 30 June 2023 and 31 March 2023
30 June 2023£'000 31 March 2023£'000
Current assets
Trade and other receivables 177 256
Cash and cash equivalents 48 31
Total current assets 225 287
Total assets 225 287
Current liabilities
Trade and other payables 55 56
Total current liabilities 55 56
Net assets 170 231
Capital and reserves
Share capital 343 343
Share premium 1,410 1,410
Retained earnings (1,583) (1,522)
Total equity 170 231
Statement of Changes in Equity
For the quarters ended 30 June 2023 and 31 March 2023
Share capital Share premium Retained earnings Total
£'000 £'000 £'000 £'000
As at 31 December 288 1,230 (1,476) 42
2022
Allotment of 55 180 - 235
ordinary shares
Loss for quarter - - (46) (46)
ended 31 March 2023
Total Comprehensive - - (46) (46)
Income
As at 31 March 2023 343 1,410 (1,522) 231
Allotment of - - - -
ordinary shares
Loss for the quarter - - (61) (61)
ended 30 June 2023
Total Comprehensive - - (61) (61)
Income
As at 30 June 2023 343 1,410 (1,583) 170
Statement of Cash Flows
For the quarter ended 30 June 2023 and 31 March 2023
30 June 2023 31 March 2023
£'000 £'000
Cash from operating activities
Loss before tax (61) (46)
Adjustments for:
Decrease /(Increase) in trade and other receivables 79 (248)
(Decrease) in trade and other payables (1) (2)
Net cash generated /(used) in operating activities 17 (296)
Cash flows from financing activities
Proceeds from issue of shares (net of issue costs) - 235
Net cash from financing activities - 235
Net cash flow for the period 17 (61)
Cash and cash equivalents at beginning of period 31 92
Cash and cash equivalents at end of period 48 31
Net change in cash and cash equivalents 17 (61)
Cash and cash equivalents comprise:
Cash at bank and in hand 48 31
48 31
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 30 June 2023 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 30 June 2023, the Company had cash of £48,000. 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
£26,500 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
30 June 2023 31 March 2023
Earnings £'000 £'000
Loss for the quarters ended (61) (46)
Number of shares
Number of shares for the purposes of 343,140,556 343,140,556
basic and diluted earnings per share
Earnings per share (pence) (0.018) (0.013)
This information was brought to you by Cision http://news.cision.com
END
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