Commenting on the results, Stuart Rogers Arria NLG LON:NLG Chairman and CEO said “We have continued to make good and steady progress across the first half of the financial year in delivering the Company’s strategic plan. In addition to growing new strategic relationships with large companies such as Genpact, and continuing to develop our valuable and growing portfolio of patents, we have invested in future growth by creating further business lines. Our first Software as a Service (SaaS) product, called Recount, is being brought to market in the summer of 2016. Recount provides small and medium sized business owners with a full-time virtual financial adviser. Further, Arria NLG will be licensing its Software Development Kit (SDK), the NLG Developer Cloud. We believe that we remain well positioned to take advantage of the business trends currently being seen and where ever-challenging business needs are met by new and innovative Artificial Intelligence technologies such as ours which our shareholders have helped us bring to the market. We would like to take this opportunity to thank our continually supportive investor base and our employees for their hard work.”
Arria NLG plc (AIM: NLG), a technology leader in Natural Language Generation (“NLG”), has given DirectorsTalk its half year results for the six month period ended 31 March 2016.
Operational Highlights
· Major new product launch initiative announced in the period – launch of Recount, our first SaaS product and SDK Developer Cloud, our software development kit, targeted for second half of the year.
· Platform product sales continue to strengthen.
· Number of Platform product clients contributing to revenue in the period continued to increase to 6 for the six months ended 31 March 2016 (HY15: 5).
· Major partnership agreement announced in the period with Genpact Inc.
· Client reach continues to broaden entering into US utilities, business process outsourcing and information technology services.
· Successful continuation of patent program with a further 3 patents announced in the period increasing the total patent portfolio granted by 75% from 4 to 7. Subsequent to the period end a further two patents were granted bringing the total to 9.
Financial Highlights
· Despite total revenues decreasing to £226k (HY15: £904k) following the loss of the Shell contract in April 2015, total non oil and gas revenues increased 133% to £226k (HY15: £97k).
· Total costs excluding amortization and share based payment charges increased 19% to £3.4 million (HY15: £2.8 million) reflecting investment in new product development strategy.
· Operating loss excluding amortisation and share based payment charges increased by 62% to £3.2 million (HY15: £1.9 million) reflecting loss of oil and gas client revenues and investment in new product strategy.
· Loss before tax was £8.4 million (HY15: £2.7 million).
· Concluded successful placing of 18.75 million ordinary shares at 32p for an initial aggregate consideration of £6.0 million (subject to sharing agreements and variable upwards or downwards – (see notes 7 and 14 for further details).
· Concluded the issue £1.573 million convertible loan notes with attached 4.482 million unlisted B Warrants in the period ended 31 March 2016.
· Subsequent to the period end concluded further fundraising of £262,000 by way of convertible loan notes and issue of 0.761 million unlisted B Warrants all of which has been received (see note 17 for further details).