TIDMGLAN

RNS Number : 8001P

Glantus Holdings PLC

14 February 2023

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 WHICH IS PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018.

Glantus Holdings plc

("Glantus" or the "Company" or the "Group")

FY 2022 Trading Update

Glantus (AIM: GLAN), the provider of Accounts Payable ("AP") automation and analytics solutions announces a trading update (unaudited) for the year ended 31 December 2022 ("FY 2022").

Trading performance

As indicated in the Company's interim results at the end of September 2022, it has been a very challenging year for Glantus. Accordingly, the Company expects to report, subject to audit, revenue for FY 2022 of c.EUR10.8m and an adjusted EBITDA loss of EUR2.1m before exceptional restructuring costs and any impairment of goodwill from acquisitions.

These results have been impacted by a number of factors, including the negative impact the global restructuring has had on productivity, the relocation of the AP audit function to Costa Rica and the delayed onboarding of some new opportunities. In addition, the Board, having done a comprehensive review, has prudently determined that a material amount of revenue which was anticipated in FY2022 from two client contracts may not be achieved.

In response to the above, the Group has rapidly and decisively restructured the business. This has achieved annualised cost savings of over EUR3m by reducing the global workforce by 39 persons. In addition, there has been a further significant reduction in operational infrastructure costs. This restructuring has consolidated operations globally with a focus on technology-led initiatives to drive margins and scale.

Alongside these cost savings, the Company has been able to generate encouraging monthly billing amounts in recent months, with average monthly billing in Q4 2022 of c.EUR1.22m and in excess of EUR1.1m for January 2023. This billing performance combined with the revised cost base means the Board believes the business is poised to deliver strong margins and positive cash flow from operations in 2023.

Balance sheet and potential equity subscription

As a result of the challenges during FY 2022, the Company currently has low amounts of cash resources available for its use. In addition, under the Company's existing banking facilities with its lender, Beach Point Capital ("BPC"), the Company is due to repay EUR5m in August 2023. The Company has been in discussions with BPC regarding such repayment and confirms that it has received from BPC a conditional commitment to extend the repayment date by 12 months to 31 August 2024 (the "Extension Commitment").

The Extension Commitment is conditional on both final legal agreement and the Company raising GBP1.2m through an equity raise. In order to satisfy the equity raise condition and increase the cash resources available to it, the Company, later today, expects to announce a conditional EUR1.4m subscription of new shares in the Company at a price of 9.25 pence per share. There can be no certainty that an equity subscription or an agreement for the BPC extension will be completed. The Company will provide further updates as appropriate.

Enquiries:

 
 Glantus Holdings 
 Maurice Healy, CEO 
  Diane Gray Smith, Interim CFO 
  ir@glantus.com                             + 353 86 2677800 
 Shore Capital 
 Nominated Advisor and Broker 
  Patrick Castle / John More / Tom Knibbs    + 44 207 408 4090 
 Yellow Jersey PR 
 Charles Goodwin 
  Lilian Filips 
  Annabelle Wills                            +44 7747 788 221

About Glantus Holdings plc

Glantus Holdings (AIM: GLAN) Glantus is a global provider of accounts payable automation and analytics solutions. Glantus' mission is to harness technology to drive innovation, unlocking efficiencies in AP to maximise working capital for global enterprise organisations. The award-winning Glantus DataShark Platform connects all AP systems and suppliers on one agile platform, eliminating cost and delivering new revenue streams. We work in tandem with our partners to deliver joint enterprise digital transformation solutions. For more information see glantus.com.

Founded in 2014 and headquartered in Dublin, Glantus has offices in the United States, United Kingdom, Poland and Costa Rica.

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