MSL SOLU For personal use only
MSL Solutions Limited
Interim Financial Report
31 December 2021
MSL SOLUTIONS LIMITED and CONTROLLED ENTITIES Interim financial report - 31 December 2021
ACN 120 815 778
only | Contents | |
Auditor's Independence Declaration | ||
Financial Statements | ||
For personal use | Independent Auditor's Review Report | |
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For personal use only
MSL SOLUTIONS LIMITED and CONTROLLED ENTITIES
Interim financial report - 31 December 2021
ACN 120 815 778
Directors' Report
The Directors of MSL Solutions Limited ('MSL' or 'the Company') submit their report together with the consolidated financial report of the Company, comprising the Company and its controlled entities ('the Group') for the half year ended 31 December 2021 and the auditor's review report thereon.
Directors
The names of the Directors of the Company in office during the period and to the date of this report are as follows:
Name | Director since | |||
Non-Executive | ||||
Mr Earl Eddings | April 2019 | |||
Dr Richard Holzgrefe | December 2007 | |||
Mr David Trude | March 2017 | |||
Mr David Usasz | February 2020 | |||
Executive | ||||
Mr Tony Toohey (Executive | September 2019 | |||
Chairman) |
Financial and Operational Review
An analysis of the Company's interim period's financial and operating performance from continuing operations is outlined below. Unless otherwise stated, all values are expressed in Australian Dollars (AUD).
In 1H FY22, MSL achieved strong increases in each of its core financial measures with increases in revenue, EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) and operating cashflow for the six months ended 31 December 2021.
The Company achieved:
- Revenue of $16.909 million, including revenue from OrderMate since its acquisition on 30th September 2021 - 45% greater than the prior corresponding period;
- Revenue growth of 29% excluding the revenue of OrderMate since its acquisition on 30th September 2021;
- Recurring revenue of $9.366 million which is 11% greater than the prior corresponding period and 3% when excluding the revenue from the OrderMate acquisition;
- EBITDA (before Government subsidies) of $2.182 million - over 3 times higher than the prior corresponding period;
- Positive Operating Cashflow (before Government subsidies) for the period of $1.526 million;
- Cash balance as at 31 December 2021 of $7.802 million with undrawn facilities of $0.8m;
- No interest bearing debt.
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For personal use only
MSL SOLUTIONS LIMITED and CONTROLLED ENTITIES
Interim financial report - 31 December 2021
ACN 120 815 778
These results reflect the continuation of our strategy being Point of Sale (POS), Golf and Digital while maintaining our focus on business fundamentals of increasing revenue from our sustainable cost base, creating cash and EBITDA profitability. The strong revenue growth in the six months occurred across a number of our segments, including:
- APAC SwiftPOS sales at the enterprise and stadium level (eg AAMI Park and Theatre Royal);
- Migrating our stadium customers in the UK as they emerge from COVID restrictions (eg ASM Global and Manchester City FC) to the latest POS platform; and
- The inclusion of revenue from the acquisition of OrderMate from 30th September 2021.
The backlog of closed sales to contribute to H2FY22 revenue is strong including:
- SwiftPOS - Eden Park, Auckland;
- Doshii integration with both SwiftPOS and OrderMate;
- Expanding SwiftPOS opportunities closed in the UK, including, Brighton Pier, Aberdeen Steak House restaurant chain and Lightwater Valley Amusement Park; and
- A full 6 month benefit from the OrderMate acquisition.
Strategy delivery
Following the successful integration of SwiftPOS in November 2020, the Company acquired 100% of OrderMate, positioning MSL as one of the major providers of Point of Sale systems in Australia.
MSL is able to leverage its UK infrastructure as well as its partnership with Taubman Capital in the USA to gain relevant and significant revenue growth for these two products. As per above, SwiftPOS in the United Kingdom is gaining traction with strong closed sales orders in the six months to 31 December 2021, while the pipeline for stadium customers in the USA is improving.
MSL has also continued its product focus and accordingly has disposed of its Marina Focus business during the six month period. The final proceeds from sale will be determined based on certain revenue metrics as at 28th February 2022, however, a gain on sale (net of costs) has provisionally been recorded as at 31 December 2021 of $87k.
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For personal use only
MSL SOLUTIONS LIMITED and CONTROLLED ENTITIES
Interim financial report - 31 December 2021
ACN 120 815 778
Consolidated summary of results for the half year ended | Dec-21 | Dec-20 |
31 December 2021 | ||
Statutory results | A$'000 | A$'000 |
Recurring Revenue | 9,366 | 8,441 |
Sales Revenue | 7,543 | 3,237 |
Revenue | 16,909 | 11,678 |
Other Income | 3 | 14 |
Cost of sales | (4,840) | (2,838) |
Gross margin | 12,072 | 8,854 |
Operating expenses after allocations | (9,890) | (8,135) |
EBITDA before Govt Subsidies | ||
2,182 | 719 | |
Government Subsidies # | 34 | 964 |
EBITDA * | ||
2,216 | 1,683 | |
Depreciation & amortisation | (2,527) | (2,504) |
Gain on sale of Marina Focus (net of costs) | 87 | - |
EBIT | ||
(224) | (821) | |
Net finance income/(costs) | ||
- Non-cash | (489) | (142) |
- Cash | (47) | (56) |
Total net finance income/(costs) | (536) | (198) |
NPBT | ||
(760) | (1,019) | |
Income tax (expense)/benefit | (97) | 23 |
NPAT | ||
(857) | (996) |
- In H1FY22 the Company received $34k as part of the Victorian Government's Business Costs Assistance Program. In H1FY21 the Company received the UK Government Coronavirus Job Retention Scheme payments and the Australian Federal Government Jobkeeper payments and cashflow boosts of $964k.
- EBITDA excludes the effects of significant non-recurring items of income and expenditure which may have an impact on the quality of earnings such as proceeds on business disposals.
Dividends
No dividends were paid to shareholders during the period, and no dividend has been declared or paid subsequent to the end of the financial period.
Rounding of amounts
The Company is of a kind referred in ASIC Corporations (Rounding in Financial/Director's Reports) Instrument 2016/191, issued by the Australian Securities and Investments Commission, relating to the 'rounding off' of amounts in the Directors' Report and consolidated interim financial statements. Amounts rounded are rounded off to the nearest thousand dollars.
Auditor's Independence Declaration
A copy of the Auditor's Independence Declaration as required under Section 307c of the Corporations Act 2001 is included at page 7 of this report.
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MSL Solutions Ltd. published this content on 16 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 February 2022 22:22:05 UTC.
