Half-year report

DXS INTERNATIONAL PLC

(AQSE: DXSP)

HALF YEAR RESULTS

DXS International plc ("DXS" or the "Company"), the digital clinical decision support company, is pleased to provide shareholders with its unaudited interim results for the half year ending 31 October 2023.

Financial highlights:

• Revenue increased by 2.5% to £1,693,910 (2022 - £1,652,467).
• Core recurring revenue model remains resilient.
• (Loss)/Profit after tax of (£121,562) compared to £27,656 in 2022, a decrease of £149,218. This decrease is mainly due to increased amortisation, increased interest charges and reduced tax benefit.
• Amortisation £570,007 compared to (2022 - £354,363). This 61% increase was in line with our policy of amortising R&D development since 2019.
• Cash at bank at the period end was £386,122 (2022 - £371,978).
• R&D tax credits on ordinary activities down by 14% due to change in HMRC allowances.

Operational highlights:

• New SMART Referral solution prototype with customers receives glowing response. Please see https://www.youtube.com/watch?v=vyxx3ixgCgw.
• An Independent Health Economics Study completed demonstrating the value of DXS SMART Referrals Solution with a potential budget impact estimation of £44 million net saving to the NHS. This compelling evidence is proving particularly persuasive with potential customers.
• Formal i4i Hypertension evaluation completed showing ability of the ExpertCare solution to significantly improve efficiencies for managing high blood pressure.
  
  

Post Period Events:

• Post period and on 30 November 2023, the Company announced that it had jointly with Health Innovate East, won a UK Innovate Grant to the value of £409,000 to help accelerate ExpertCare’s route to market. The grant includes the addition of Cholesterol and Diabetes to the technology platform. This 18 month project commenced on 1 December 2023.
  
  

Outlook

Implementation of our pipeline business is being hindered as the NHS Central Funding pot, on which our solutions largely depend, remains frozen whilst awaiting internal NHS renewal processes to be finalised. Until this happens our ability to achieve previous market guidance on turnover, which was anticipated at £3.8 million by April 2024 and £4.7 million by 2024 calendar year end, will be delayed. The Company will give more detailed guidance on this during April.

As a counter to this we have been innovating new ways of securing NHS contracts.

• Gaining evidence evaluated by third parties proving the ROI to the NHS.
• Offering a Risk Sharing and Reward model to the NHS by receiving significant upside if we achieve the NHS desired targets.
• Providing services to overcome the NHS resource shortage challenge.
  
  

In pivoting as described above, we are entering into formal collaborations with organisations that currently have the skill and accreditation to work with us.

David Immelman, Chief Executive of DXS, commented:

"Although gaining sales growth remains frustratingly slow, we are more confident than ever that we have exceptionally effective solutions for helping the NHS to resolve their acknowledged problems and that this can be demonstrated by provable data:

• £ Millions saved yearly.
• Tens of thousands of patient lives saved.
• Helping with the resource shortage.
• Contributing to the NHS Net Zero Targets.

Our team remain filled with conviction and enthusiasm for what we have to offer and as a result we are finalising a set of Management Incentive and Option Scheme to replace the one that expired last year. In addition, we are looking at introducing a wider staff incentive share scheme.”

The Directors of DXS International plc accept responsibility for this announcement. This announcement contains information which, prior to its disclosure, was inside information as stipulated under Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310 (as amended).

INTERIM RESULTS to 31 OCTOBER 2023

CONSOLIDATED INCOME STATEMENT

for the six month period ended 31 October 2023

STATEMENT of FINANCIAL POSITION

as at 31 October 2023

STATEMENT of CASH FLOWS

Six months ended 31 October 2023

Net Debt Reconciliation

The above figures have not been reviewed by the company's auditors Crowe U.K. LLP.

The Directors of DXS International plc accept responsibility for this announcement

Contacts:

Notes to Editors

About DXS:

DXS International presents up to date treatment guidelines and recommendations, from Clinical Commissioning Groups and other trusted NHS sources, to doctors, nurses and pharmacists in their workflow and during the patient consultation. This effective clinical decision support ultimately translates to improved healthcare outcomes delivered more cost effectively and which should significantly contribute towards the NHS achieving its projected efficiency savings.