Half-Year Report

(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 2024.

Financial highlights:

• Revenue increased by 2.2% to £1,730,829 (2023 - £1,693,910).
• Core recurring revenue model remains resilient.
• Profit after tax of £1,131 compared to a loss of (£121,567) in 2023, an improvement of £122,698. It should be noted that, due to the write down of deferred expenditure in April 2024, there was a very small depreciation charge of £493 compared to that included in respect of half year ending 31 October 2023 (£570,007). It should also be noted that all development costs for ongoing R&D are now included in the P&L which is in line with new HMRC guidelines.
• Available cash at the period end was £96,431 (2023 - £386,122), plus unutilised debtor drawdowns of £256,670 (2023 £386,122).
• R&D tax credits on ordinary activities down by 51% due to change in HMRC allowances.
• Post period end, the Company has secured a price rise in respect of some NHS contracts that will marginally improve Revenues for the second half of the financial year.

Operational highlights:

• Our new SMART Referral solution continues to show promise with the integration with the NHS' Electronic Referral System now complete.
• The recent NHS announcement to push a financial incentive of £80 million to GP practices as part of a bid to reduce the elective waiting lists bodes well for DXS' SMART Referrals solution.
• Tackling Cardiovascular Disease ('CVD') remains an NHS priority and therefore, the positive outcomes of improving blood pressure control during the current Innovate UK Evaluation of DXS' ExpertCare hypertension solution shows significant promise for wider system adoption – particularly when in England, blood pressure control dropped from 70.9% to 66.8% between March and June 2024. (Blood pressure control is reviewed quarterly for England).
• Started first ExpertCare commercial contract for the management of hypertension for a PCN in the East of England.
• We have continued our committed investment in R&D, even though this is not reflected in the Balance Sheet.
  

Outlook

Current lack of available NHS budgets remains a barrier to closing new sales. Armed with evidence of the effectiveness of our solutions in solving real problems for both the patient and the taxpayer, we continue to the believe that it is a matter of time before new NHS funding specifically aimed at alleviating NHS pressures by the introduction of innovative digital solutions becomes more readily available.

In addition, we continue our policy of:

• Gaining evidence evaluated by third parties proving the effectiveness of our solutions and demonstrating the ROI to be gained by the NHS .
• Offering a risk sharing value-based procurement model to the NHS that include performance based upsides.
• Providing services to overcome the NHS resource shortage challenges.
• Forming collaborations with organisations that currently have the skill and accreditation to work with us.
• The intense focus is on growing sales, but if it remains slow, appropriate efficiencies will be considered.
  

David Immelman, Chief Executive of DXS, commented:

“Although gaining sales growth remains frustratingly slow, I repeat my statement from a year ago: We remain confident that we have exceptionally effective solutions for helping the NHS to resolve their acknowledged problems and that this can be demonstrated by provable data which saves millions of pounds annually, saves patient lives, helps with the resource shortage and contribute to the NHS Net Zero Targets.”

“Our team remains fuelled with conviction and enthusiasm for what we have to offer to the NHS and beyond. The Board continues with salary cost cuts as a contribution to cash flow.”

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 2024

Consolidated Income Statement

for the six months ended 31 October 2024

Consolidated Statement of other Comprehensive Income

for the six months ended 31 October 2024

STATEMENT of FINANCIAL POSITION

as at 31 October 2024

Statement Of Cash Flows

Six months ended 31 October 2024

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.

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