Celebrus Technologies plc

Good afternoon and welcome to the Celibris Technologies PLC final results investor presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged and they can be submitted at any time using the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question received during the meeting itself. However, the company can review all questions submitted today on published responses, which is appropriate to do so. Before we begin, I would like to submit the following poll. And I would now like to hand you over to CEO Bill Bruno. Good afternoon to you.

Hi there. Good afternoon to you as well. And thank you, everybody, for taking some time today to hear our results from the prior year ending on the 31st of March. Ash and I will be spending quite a bit of time today, largely spent by Ash, walking through all of the various financial changes in addition to the results from the previous year. But during the trading update in April, we also walked through an extensive list of adjustments that we were making going forward to the business with regards to things like our revenue recognition, this previous financial year being the first year fully in US dollars. and several other elements that we'll walk through today in depth and help you understand the differences and the changes and what that means and where to focus on from a business perspective to align with what we view as being both strategic to the business, but also what we view as being the most value generating for shareholders. going forward. So with that, I will turn things over to Ash and we will start with some financial highlights and walk through some of these accounting changes. As mentioned, the Q&A tab is open. I'm keeping an eye on that on my screen here. So as you do have questions, feel free to throw them in there and we'll address them either in the moment if it makes sense or we'll we'll wait until the end and there will be ample time at the end as well for you to submit a variety of questions for those of you that have attended these before we usually try to make sure that there's way more time to answer your questions than there is for us to to do the speaking um so with that ash i'll throw it over to you sir and you can give it a go

Thanks, Will. So let me just run through the financial highlights and I'll go into some of these points in a bit more detail in the subsequent slides. Obviously, the key point as we kick off is really about the accounts being presented in US dollars for the first time. I'll talk about why that is. And I'll also talk about the changes we have already made in the current year that we're reporting and the changes we will be making from the year that April 2025. But on a historic basis, the key points are that ARR was up almost 14% to 18.8 million. This is under the new definition, and I'll come and talk about that new definition and why we changed that definition. Total revenue in the year was 38.7 compared to 40.9 million last year. The headline revenue is really kind of There is a degree of lumpiness to it, and that's because of hardware sales that we've made historically where we recognize the revenue on those hardware sales, but only have a very small profit margin. So what we tend to focus on is the software revenue, and that was up to 30.3 million up from 20.7 million. 27.7 million the year before, so a 9.4% increase. The gross profit margin, again, is affected by the low margin on hardware. That's why we tend to focus on the software revenue gross margin. That has gone up this year to 75% from 72.8% last year and from around 68% a few years ago. So the work we've been doing in terms of making the business scalable um and getting the efficiencies within the businesses kind of paying off in the software margin that also is going to change in this current financial year and i'll talk about what that changes and why it's important for you to understand the pbt of the year was 8.7 million and the statutory profit before tax so after all the non-cash charges were 7.3 million both of those up on last year And that gave us an adjusted diluted earnings per share of 18.24 cents. So all of these numbers, if you remember, are US dollars. We're now reporting EPS in cents. Although when you see the annual report, you will see the EPS also in pence if you want to look at it that way. Compared to the share price, that may make sense. The share price is obviously still in pence. And the dividend also we will continue to pay as a GBP amount. So the amount we're proposing for the final dividend of this year is 2.32 pence. and that's an increase of 3.8% compared to last year. And if you follow the company for the last few years, you'll know we have a very healthy balance sheet. Our year-end cash position was 31.5. That's down from last year, and that's basically due to an unwinding of the debtor and creditor position, again related to third-party hardware, which again distorts our cash flows and our working capital. And I'll talk again a bit later about why that's important to kind of flush out if you like in terms of how we view the business and how we report it. So 10, 15 minutes on accounting and reporting changes. The driver behind these has been the increased visibility and transparency we want to give to investors to be able to understand the business better, to be able to see the growth and the changes in the business more clearly. And I think it's fair to say in the past, where we've had some of this reporting we've had buckets of revenue or ARR aggregated between the celebrist business and the non-celebrist business as we call it so some of the historic customers that we've had for some time and that has perhaps been a little bit confusing so now we're going to split all of that out so let's just touch on the USD reporting first so that's effective in terms of our reporting from this round, effectively, but it fall from 1st of April 2025. And there are two drivers for this. Firstly, as the business grows and most of our customers, whether they're in the US or whether they're in Europe or in Asia-Pac even, prefer to contract in US dollars. And that's probably because for the large part, they also report their numbers in US dollars. So Every time we win a new contract, we need to set up a forward FX contract to hedge the risk if we're reporting in GBP. But of course, as the business grows, that becomes very unmanageable in that every time we sign a new deal or an upsell or even a renewal, we then have to put in place three FX hedges effectively.