# Actual Experience components in place for transition from start-up to scaleup

- Link: https://www.directorstalkinterviews.com/actual-experience-components-in-place-for-transition-from-start-up-to-scaleup/4121065964
- Published: 2022-05-24T07:25:35+01:00
- Author: Giles

**Actual Experience plc** ([LON:ACT](https://www.directorstalkinterviews.com/company/actual-experience-plc/act.l)),
the Digital Workplace Management System (Analytics-as-a-Service) company, announced
today its unaudited consolidated interim results for the six months ended 31 March
2022.

**Financial Highlights**

●    Revenue of £0.82m (H1 FY21: £0.89m)

●    Gross profit of £0.35m (H1 FY21: £0.45m)

●    Operating loss of £2.84m (H1 FY21: £2.19m)

●    Loss per share of 4.97p (H1 FY21: loss per share of 4.29p)

●    Cash and cash equivalents at 31 March 2022 of £5.37m (30 September 2021: £8.22m)

**Operational Highlights**

●     Direct sales team has increased focus on direct customer engagement

●     Appointments of Chief Product Officer and Chief Revenue Officer have strengthened
executive team

●     New Digital Workplace Management System (DWMS) portal, soft launched following
consultations with existing customers

●     New go-to-market strategy developed to speed up the conversion of pipeline
to customers

**Current trading and outlook**

●    Components in place for transition from a start-up to a scaleup

●    Sales activity focus on selling the enhanced product offering

●  Pipeline of new business prospects building steadily, with focus on converting
these opportunities into recurring revenue streams

●    Lower cost base expected in the second half of the year

> **_Dave Page, CEO of Actual Experience plc, said:_** “Actual Experience now has
> the components in place for transitioning from being a start-up to a scaleup business.
> With the new DWMS portal, which harnesses our unique Human Experience (HX) insights,
> we have a better defined product that has been well received by actual and prospective
> customers. With this improved product development, we are working to scaleup the
> business by focusing on direct sales and marketing efforts to convert our pipeline
> of global blue-chip opportunities into revenue generating long term customers.
> Whilst the current macro environment has accelerated the need for our product 
> offering, as enterprises embrace new and hybrid ways of working, we have also 
> been impacted by the lengthening of procurement processes at these large businesses.
> We remain confident that the second half of the year will see improved momentum
> as our product and sales investments bear fruit.”

> **_Kirsten English, Chair of Actual Experience plc, said:_** “Our primary focus
> is to generate more sales. To this end we have recently invested in a direct sales
> force, invested in marketing, hired a Chief Product Officer and a Chief Revenue
> Officer to bring onboard further business. Our new portal provides clear ‘quant
> driven’ answers to the questions that the ‘C’ suite and Board in corporations 
> are asking about the hybrid workplace; how much time is our company wasting due
> to the inefficiency of digital tools and how do we fix this? How does digital 
> inefficiency impact the wellbeing of our people? Where are our people working 
> from and what does this mean in terms of our real estate outlook? Actual Experience’s
> analytics service pinpoints precisely where companies can invest to make the greatest
> positive impact on employee efficiency and wellbeing and critically we can also
> measure the resultant return on that investment.”

**BUSINESS REVIEW**

The start of the financial year for Actual Experience saw two new contract wins 
which were announced in November 2021. Both contracts were for Business Impact Assessments(
BIA) and provided clear validation of the quality and relevance of the Company’s
technology offering. The first of these new contract wins was with a Channel Partner
to use across its own organisation, assisting in its new hybrid working policy, 
as well as providing a powerful reference as it sells to its own customers. The 
second contract was with a leading global food and beverages business. These two
contract wins were the third and fourth awarded to the business since its pivot 
to the professional services model.

Having been awarded these two new BIA wins, the Company is now working to convert
them to Continuous Improvement (CI) contracts, as part of our ‘land and expand’ 
strategy, as we have been doing with all our new customers. Since November of last
year, significant progress has been made in converting these customers to CI contracts.
However, the sales team has been finding that in the current climate of macroeconomic
and geopolitical uncertainty, the procurement processes for the larger multinational
enterprises we are selling into has been lengthened.

Despite the increasing length of time it is taking to convert these contracts into
orders, the board is encouraged by the potential within the pipeline.

As part of our preparedness for transition from start-up to scaleup, we have recently
significantly bolstered our executive team with two experienced hires to help drive
growth.

Firstly, we recruited Scarlet Jeffers as Chief Product Officer to lead the development
of our new product offering and to be responsible for driving a deep understanding
of the needs of our customers and the wider market into our development roadmap.
Scarlet’s work has directly led to the development of a new portal, greatly improving
the user experience for our customers and delivering a better overall product-market
fit. With the newly defined product scheduled for launch in the coming months, we
will be able to fully implement our new go-to-market strategy.

Secondly, we appointed Roy Jugessur as Chief Revenue Officer. This role will strengthen
our customer engagement, sales, and marketing functions as we build out our pipeline
of new business opportunities.

As previously announced, a long-standing contract via a Channel Partner (based on
our legacy offering) has not been renewed due to a change in customer strategy. 
This contract delivered revenues of £1.2m in FY2021 and £0.4m in the current fiscal
year.

**Board Changes**

As previewed in our announcement in September 2021, Kirsten English was appointed
as Chair, with effect from the date of the AGM in March this year. Kirsten has extensive
experience relevant to our business, particularly in this growth phase as we transition
from start-up to scaleup. In the first months of her tenure, Kirsten has been actively
engaging with the Company’s largest shareholders, to ensure an open and collaborative
dialogue.

**Market**

As business emerges from the Covid-19 pandemic, we are seeing a growing number of
examples, especially in larger global blue-chip companies, where management is embracing
the concept of new ways of working, in recognition and that a hybrid working environment
can be more cost efficient for their businesses, as well as increasing productivity
and well-being for their staff. This move to a new way of working directly benefits
Actual Experience, as a customer might effectively go from having 100 offices to
100,000 home offices, with a commensurate reduction in the visibility and control
of the workplace.

Our DWMS and our unique Human Experience analysis gives our customers greatly improved
insight into the impact that the digital workplace is having on employee and business
efficiency. This service is crucial for many businesses grappling with a drastic
change from the traditional five-day office week. Not only does our technology allow
customers to be more focussed in terms of targeting capital expenditure and reducing
operational costs to maximise efficiency and productivity, our product also facilitates
a greater level of employee engagement, playing a part in ensuring that separation
and physical distance between employees does not lead to a fractured working environment.
By coupling business impact insights with highly actionable technology data, we 
can support our customers in creating a sustainable future of work in their business.

**Strategy**

Having previously completed our pivot to our new Analytics-as-a-Service offering,
we are now ready to scaleup our business by focussing on direct engagement with 
our prospective and existing customers to ensure we are delivering the best value
to customers that we can with our technology.

We continue to develop our direct sales capability, with our new Chief Revenue Officer,
Roy Jugessur in place to strengthen our sales function, and with further product
enhancements;

●     Greater automation of our reporting to reduce the resource required to deliver
to individual customers each time, this will enable us to scale effectively and 
quickly as the pipeline closes.

●     Scalability of our service clouds so that we can cost-effectively handle the
demands of the world’s largest enterprises as we enter an aggressive growth phase.

**Product development**

Chief Product Officer Scarlet Jeffers has been leading the development of our new
DWMS offering and is responsible for driving into our work a deep understanding 
of the needs of our customers and the wider market into our work. In developing 
the new portal, Scarlet and her team have been engaging directly with our prospective
and existing customers to understand more clearly their wants and needs. We are:

●     Soft-launching an engaging, intuitive customer portal to show the business
value of our insights with greater impact. This will allow us to optimise margins
and also pave the way for building resonance in the market as we become recognisable
in our niche

●     Increasing the capability of our measurement software to capture non-invasive
diagnostics about home worker internet setups and provide the level of granularity
that large enterprise organisations need in order to make hybrid working truly sustainable

●     Using a refreshed Human Experience Score to give a more intuitive understanding
in the market and to be reflective of the experience of home workers by accounting
for variability in the digital workplace

●     Putting heavy focus on doing more with our data, finding ways to provide deeper
insights and working to understand how we can interface with other sources of information
for our customers in the future

**Sales & Marketing**

In the period, Actual Experience took several positive steps to improve its sales
function, with further investment in the direct sales team.  Our direct sales team
has focussed on increasing the level of direct customer engagement, which promises
to assist in converting pipeline prospects into paying customers.

We have focussed our marketing activity on various means of testing and evaluation
of messaging and positioning to people leaders (CHROs) and finance leaders (CFOs).
This has included participation in conferences, round tables, podcast style interviews,
blogs and other forums, particularly in the HR space, that has helped to improve
the positioning and value of our product.

**Outlook**

Actual Experience is now well prepared to scaleup its operations. Market conditions
remain encouraging for our business, as our technology offering directly supports
the needs of many large blue-chip companies that are increasingly looking to embrace
new hybrid ways of working. It is becoming ever clearer that ‘new ways of working’
are here to stay and are no longer directly a temporary response to the impact of
Covid-19.

With the newly refined portal and increased customer engagement, the Company is 
now at a stage where further development of the product is not the key priority.
Instead, we are transitioning to a scaleup business by focussing on our direct sales
and marketing functions to ensure we maximise the breadth and depth of businesses
that can feed into our active pipeline of prospects.

The increasing length of procurement processes at large, global blue-chip companies
has proven a challenge.  However, the Board expects that the second half of 2022
will see increased momentum as the benefits of our improved product offering and
sales functions lead to new ‘wins’.

**FINANCIAL REVIEW**

_Consolidated Income Statement_

Total revenue for the six months to 31 March 2022 was £824,706, a decrease on the
prior year of 7.3% (H1 FY21: £889,467). This decrease reflects the previously announced
cancellation of a longstanding contract that relied on our legacy product offering,
partly offset by new DWMS revenues. The Company maintained its focus on developing
a direct sales capability during the period, while continuing to work with its partners
on indirect sales opportunities. Revenues from Channel Partners in the period account
for 96.4% of sales (H1 FY21: 97.9%).

A gross profit of £354,386 was achieved in the period, compared to the gross profit
of £446,902 in the corresponding period in 2021. The gross margin for the six months
was 43.0%, representing a decrease from the prior period (H1 FY20: 50.2%). This 
decrease in gross margin reflects the impact of fixed costs on a lower revenue period
and investment made in cloud infrastructure to support new DWMS revenue opportunities.

Administrative costs amounted to £3,194,804, compared to £2,632,341 in the six months
to 31 March 2021. This increase primarily arose from the investment in sales and
marketing activities in the period

The functional cost breakdown is as follows:

|  | **Six months ended****31 March****2022** | Six months ended31 March2021 | Yearended30 September2021 | 
|  | **£** | £ | £ | 
| Sales and marketing | **971,671** | 564,187 | 1,548,040 | 
| Research and development | **1,000,714** | 1,018,316 | 2,131,682 | 
| Impairment to previously capitalised spend | **–** | – | 820,110 | 
| Operational support | **580,263** | 489,335 | 1,008,287 | 
| Finance and administration | **634,331** | 535,780 | 1,209,945 | 
| Foreign exchange losses | **7,825** | 24,723 | 3,850 | 
| **Total** | **3,194,804** | 2,632,341 | 6,721,914 | 
| ** ** | ** ** |  |  |

It is anticipated that administrative costs will be lower in the in the second half
of the year, due primarily to a combination of lower employee headcount and reduced
marketing expenditure and will continue to be kept under review.

As disclosed in the notes to the Company’s 2021 Financial Statements, and in accordance
with the requirements of IAS 38, qualifying development expenditure is capitalised
and amortised over the estimated useful life of the developed assets.  Total expenditure
on research and development in the six months to 31 March 2022, prior to IAS 38 
adjustments, was £976,956 (H1 FY21: £861,558).

The Group recorded an operating loss in the period of £2,840,418 (H1 FY21: loss 
of £2,185,439) and a loss per share of 4.97p (H1 FY21: loss per share of 4.29p).
A summary of the Group’s results is set out below

|  | **Six months ended****31 March****2022** | Six months ended31 March2021 | Yearended30 September2021 | 
|  | **£** | £ | £ | 
| **Revenue** | **824,706** | 889,467 | 1,741,207 | 
| **Gross profit** | **354,386** | 446,902 | 833,209 | 
| **Operating loss** | **(2,840,418)** | (2,185,439) | (5,888,705) | 
| **Loss for the period/year** | **(2,849,540)** | (2,150,074) | (5,847,195) |

_Balance sheet_

The Group has a debt free balance sheet.  Cash and cash equivalents decreased during
the period, from £8,216,198 at 30 September 2021 to £5,373,451 at 31 March 2022,
in line with expectations. This decrease arose from operating losses in the period.

Free cash flow for the period was £(2,796,982) (H1 FY21: £(2,056,338)). This increase
reflects the higher operating loss; as noted above, this primarily arose from an
increase in Sales and Marketing expenses. Free cash flow is defined as net cash 
flows used in operating activities, plus development of intangible assets, plus 
purchase of property, plant and equipment.

Trade and other receivables of £393,161 at 31 March 2022 (31 March 2021: £986,669)
comprise trade debtors of £30,451, prepayments of £235,910 and other debtors of 
£126,800.

_Cash flow statement_

The movement in cash and cash equivalents during the period was:

|  | **Six months** | Six months | Year | 
|  | **ended** | ended | ended | 
|  | **31 March** | 31 March | 30 September | 
|  | **2022** | 2021 | 2021 | 
|  | **£** | £ | £ | 
| Net cash used in operating activities | **(2,375,900)** | (1,661,947) | (3,145,093) | 
| Net cash used in investing activities | **(418,108)** | (394,088) | (713,511) | 
| Net cash generated from/(used in) financing activities | **(50,007)** | 9,372,616 | 9,324,707 | 
| Effect of exchange rate fluctuations | **1,268** | (6,077) | (4,179) | 
| **Movement during the period/year** | **(2,842,747)** | 7,310,504 | 5,461,924 |

_Going concern_

As described in Note 2, Basis of Preparation, the amounts and timing of future revenues
remain uncertain. If the Group is unable to secure an appropriate combination of
new revenue contracts, cost reductions, and/or further funding, then it may not 
have sufficient resources to meet its liquidity requirements for the foreseeable
future. Accordingly, material uncertainty exists which may cast significant doubt
about its ability to continue as a going concern.

**Actual Experience plc**

**Consolidated income statement and statement of comprehensive income**

For the six months ended 31 March 2022

|  | **Unaudited** | Unaudited | Audited | 
|  | **Six months** | Six months | Year | 
|  | **ended** | ended | ended | 
|  | **31 March** | 31 March | 30 September | 
|  | **2022** | 2021 | 2021 | 
|  | **£** | £ | £ | 
| **Revenue** | **824,706** | 889,467 | 1,741,207 | 
| **Cost of sales** | **(470,320)** | (442,565) | (907,998) | 
| **Gross profit** | **354,386** | 446,902 | 833,209 | 
| Administrative expenses | **(3,194,804)** | (2,632,341) | (6,721,914) | 
| **Operating loss** | **(2,840,418)** | (2,185,439) | (5,888,705) | 
|  | ** ** |  |  | 
| Finance income | **2,974** | 303 | 2,734 | 
| Finance expense | **(12,096)** | (14,010) | (27,285) | 
| **Finance expense – net** | **(9,122)** | (13,707) | (24,551) | 
|  | ** ** |  |  | 
| **Loss before tax** | **(2,849,540)** | (2,199,146) | (5,913,256) | 
| Tax | **–** | 49,072 | 66,061 | 
| **Loss for the period/year** | **(2,849,540)** | (2,150,074) | (5,847,195) | 
|  | ** ** |  |  | 
| **Other comprehensive income:** | ** ** |  |  | 
| **Items that are or may be reclassified to profit or loss:** | ** ** |  |  | 
| Foreign currency difference on translation of overseas operations | **5,521** | (18,283) | (19,314) | 
| **Total comprehensive loss for the period/year** | **(2,844,019)** | (2,168,357) | (5,866,509) | 
|  | ** ** |  |  | 
| **Loss per ordinary share** | ** ** |  |  | 
| Basic and diluted | **(4.97)p** | (4.29)p | (10.84)p |

**Actual Experience plc**

**Consolidated statement of financial position**

As at 31 March 2022

|  | **Unaudited** | Unaudited | Audited | 
|  | **At 31 March** | At 31 March | At 30 September | 
|  | **2022** | 2021 | 2021 | 
|  | **£** | £ | £ | 
| **Non-current assets** | ** ** |  |  | 
| Property, plant and equipment | **47,634** | 29,423 | 48,879 | 
| Right-of-use assets | **614,918** | 726,710 | 670,814 | 
| Intangible assets | **873,441** | 1,816,023 | 897,199 | 
| **Total non-current assets** | **1,535,993** | 2,572,156 | 1,616,892 | 
|  | ** ** |  |  | 
| **Current assets** | ** ** |  |  | 
| Trade and other receivables | **393,161** | 986,669 | 584,819 | 
| Income tax receivable | **44,103** | 342,331 | 44,103 | 
| Cash and cash equivalents | **5,373,451** | 10,064,778 | 8,216,198 | 
| **Total current assets** | **5,810,715** | 11,393,778 | 8,845,120 | 
| ** ** | ** ** |  |  | 
| **Total assets** | **7,346,708** | 13,965,934 | 10,462,012 | 
| ** ** | ** ** |  |  | 
| **Non-current liabilities** | ** ** |  |  | 
| Deferred tax | **(8,826)** | (4,770) | (8,901) | 
| Lease liabilities | **(545,691)** | (662,915) | (604,894) | 
| **Total non-current liabilities** | **(554,517)** | (667,685) | (613,795) | 
| ** ** | ** ** |  |  | 
| **Current liabilities** | ** ** |  |  | 
| Trade and other payables | **(700,957)** | (705,518) | (897,041) | 
| Lease liabilities | **(117,224)** | (113,259) | (115,246) | 
| **Total current liabilities** | **(818,181)** | (818,777) | (1,012,281) | 
| ** ** | ** ** |  |  | 
| **Total liabilities** | **(1,372,698)** | (1,486,462) | (1,626,076) | 
| ** ** | ** ** |  |  | 
| **Net assets** | **5,974,010** | 12,479,472 | 8,835,936 | 
|  | ** ** |  |  | 
| **Equity** | ** ** |  |  | 
| Share capital | **114,681** | 114,388 | 114,538 | 
| Share premium | **44,231,620** | 44,191,196 | 44,212,455 | 
| Accumulated losses | **(38,372,291)** | (31,826,112) | (35,491,057) | 
| **Total equity** | **5,974,010** | 12,479,472 | 8,835,936 |

**Actual Experience plc**

**Consolidated statement of changes in equity**

For the six months ended 31 March 2022

|  | **Share**** capital****£** | **Share****premium****£** | **Accumulated****losses****£** | **Total****equity****£** | 
| **Unaudited**  |  |  |  |  | 
| **As at 30 September 2020** | 95,284 | 34,768,349 | (29,666,862) | 5,196,771 | 
| ** ** |  |  |  |  | 
| Loss for the period | – | – | (2,150,074) | (2,150,074) | 
| Other comprehensive income for the period | – | – | (18,283) | (18,283) | 
| Total comprehensive loss for the period | – | – | (2,168,357) | (2,168,357) | 
|  |  |  |  |  | 
| Issue of shares | 19,104 | 9,422,847 | – | 9,441,951 | 
| Share-based payment credit | – | – | (9,107) | (9,107) | 
| **As at 31 March 2021** | 114,388 | 44,191,196 | (31,826,112) | 12,479,472 | 
|  |  |  |  |  | 
| **Audited** |  |  |  |  | 
| **As at 30 September 2020** | 95,284 | 34,768,349 | (29,666,862) | 5,196,771 | 
| ** ** |  |  |  |  | 
| Loss for the year | – | – | (5,847,195) | (5,847,195) | 
| Other comprehensive income for the year | – | – | (19,314) | (19,314) | 
| Total comprehensive loss for the year | – | – | (5,866,509) | (5,866,509) | 
|  |  |  |  |  | 
| Issue of shares | 19,254 | 9,444,106 | – | 9,463,360 | 
| Share-based payment expense | – | – | 42,314 | 42,314 | 
| **At 30 September 2021** | 114,538 | 44,212,455 | (35,491,057) | 8,835,936 | 
| ** ** |  |  |  |  | 
| **Unaudited** |  |  |  |  | 
| **As at 1 October 2021** | 114,538 | 44,212,455 | (35,491,057) | 8,835,936 | 
|  Loss for the period |  – |  – |  (2,849,540) |  (2,849,540) | 
| Other comprehensive income for the period | – | – | 5,521 | 5,521 | 
| Total comprehensive loss for the period | – | – | (2,844,019) | (2,844,019) | 
|  |  |  |  |  | 
| Issue of shares | 143 | 19,165 | – | 19,308 | 
| Share-based payment credit | – | – | (37,215) | (37,215) | 
| **At 31 March 2022** | 114,681 | 44,231,620 | (38,372,291) | 5,974,010 |

**Actual Experience plc**

**Consolidated statement of cash flows**

for the six months ended 31 March 2022

|  | **Unaudited** | Unaudited | Audited | 
|  | **Six months** | Six months | Year | 
|  | **ended** | ended | ended | 
|  | **31 March** | 31 March | 30 September | 
|  | **2022** | 2021 | 2021 | 
|  | **£** | £ | £ | 
| **Cash flows from operating activities** |  |  |  | 
| Loss before tax | **(2,849,540)** | (2,199,146) | (5,913,256) | 
| _Adjustment for non-cash items:_ | ** ** |  |  | 
| Depreciation of property, plant and equipment | **14,193** | 32,519 | 48,413 | 
| Depreciation of right-of-use assets | **55,896** | 55,896 | 111,792 | 
| Amortisation of intangible assets | **431,911** | 548,202 | 933,780 | 
| Impairment of intangible assets | **–** | – | 820,110 | 
| Loss/(profit) on disposal of property, plant and equipment | **17** | – | (359) | 
| Non-cash employee benefit expense – Share-based payments | ** ****(37,215)** |  9,107 |  42,314 | 
| Finance income – net | **9,122** | 13,707 | 24,551 | 
| **Operating cash outflow before changes in working capital** | **(2,375,616)** | (1,539,715) | (3,932,655) | 
| Movement in trade and other receivables | **198,996** | (311,968) | 94,827 | 
| Movement in trade and other payables | **(199,205)** | 189,754 | 373,405 | 
| **Cash outflow from operations** | **(2,375,825)** | (1,661,929) | (3,464,423) | 
| Income tax received | **(75)** | (18) | 319,330 | 
| **Net cash flows used in operating activities** | **(2,375,900)** | (1,661,947) | (3,145,093) | 
| ** ** | ** ** |  |  | 
| **Cash flow from investing activities** | ** ** |  |  | 
| Development of intangible assets | **(408,153)** | (391,444) | (678,308) | 
| Purchase of property, plant and equipment | **(12,929)** | (2,947) | (38,300) | 
| Proceeds from sale of property, plant and equipment | **–** | – | 363 | 
| Finance income | **2,974** | 303 | 2,734 | 
| **Net cash outflow from investing activities** | **(418,108)** | (394,088) | (713,511) | 
| ** ** | ** ** |  |  | 
| **Cash flow from financing activities** | ** ** |  |  | 
| Proceeds from issue of share capital, net of costs | **19,308** | 9,441,951 | 9,463,360 | 
| Principal element of lease payments | **(69,315)** | (69,315) | (138,630) | 
| Inflow/outflow to Employee Benefit Trust | **–** | (20) | (23) | 
| **Net cash (outflow)/inflow from financing activities** | **(50,007)** | 9,372,616 | 9,324,707 | 
|  | ** ** |  |  | 
| (Decrease)/increase in cash and cash equivalents | **(2,844,015)** | 7,316,581 | 5,466,103 | 
| Effect of exchange rate fluctuations on cash held | **1,268** | (6,077) | (4,179) | 
| Cash and cash equivalents at start of year / period | **8,216,198** | 2,754,274 | 2,754,274 | 
| **Cash and cash equivalents at end of year / period** | **5,373,451** | 10,064,778 | 8,216,198 |

**Notes to the consolidated interim report**

For the six months ended 31 March 2022

**1          General information**

Actual Experience plc (the “Company”) is a public limited company domiciled in the
UK and incorporated in England and Wales (registered number 06838738) and its registered
office is Quay House, The Ambury, Bath, BA1 1UA.

The principal activity of Actual Experience plc (“the Company”) and its subsidiary
company Actual Experience Inc (together “Actual Experience” or “the Group”) is the
provision of digital experience quality analytics services and associated consultancy
services. 

The interim condensed consolidated financial information approved for issue on 23
May 2022.

**2          Basis of preparation**

This unaudited interim condensed consolidated financial information has been prepared
under the historical cost convention and in accordance with AIM Rules for Companies.
The interim condensed consolidated financial information has been prepared on a 
going concern basis and is presented in Sterling to the nearest £1.

‘On 31 December 2020, IFRS as adopted by the European Union at that date was brought
into UK law and became UK-adopted International Accounting Standards, with future
changes being subject to endorsement by the UK Endorsement Board. Actual Experience
transitioned to UK-adopted International Accounting Standards in its consolidated
financial statements on 1 October 2021. This change constitutes a change in accounting
framework. However, there is no impact on recognition, measurement or disclosure
in the period reported as a result of the change in framework. This interim condensed
consolidated financial information for the six months ended 31 March 2022 has been
prepared in accordance with the UK-adopted International Accounting Standards.

The interim financial information does not include all of the notes of the type 
normally included in an annual financial report. Accordingly, this report is to 
be read in conjunction with the annual report for the year ended 30 September 2021,
which has been prepared in accordance with “International Accounting Standards in
conformity with the requirements of the Companies Act 2006”, and any public announcements
made by Actual Experience during the interim reporting period. The accounting policies
adopted are consistent with those of the previous financial year and corresponding
interim reporting period.

The interim condensed consolidated financial information for the six months ended
31 March 2022 and for the six months ended 31 March 2021 do not constitute statutory
accounts as defined in Section 434 of the Companies Act 2006 and are unaudited. 
The financial information for the six months ended 31 March 2022 presents financial
information for the consolidated group, including the financial results of the Company’s
wholly owned US subsidiary, Actual Experience Inc. Comparative figures in the Interim
Report for the year ending 30 September 2021 have been taken from the Group’s audited
financial statements. Those accounts have been reported on by the Company’s auditors
and delivered to the Registrar of Companies. The report of the auditors was (i) 
unqualified, although included an emphasis of matter in respect of material uncertainty
around going concern and (ii) did not contain a statement under section 498(2) or(
3) of the Companies Act 2006.

**Going concern**
As in previous years, the Group and Company have continued to 
utilise their cash resources to fund losses while the sales pipeline is being further
developed. The cash balance as at 31 March 2022 was £5.4m, which will provide the
Group and Company with sufficient resources to meet their liquidity requirements
at least until 30 September 2023, based on the Group’s latest budgeted sales and
cost projections. The Directors have also prepared a severe, but plausible downside
scenario, based on significantly more pessimistic sales forecasts, with corresponding
reductions in controllable costs. In this scenario also, the Group and Company will
continue to meet their liquidity requirements over the period.

The amounts and timing of future revenues in the Group’s budgets remain uncertain.
The Group is experiencing an encouraging level of interest in its services and it
is in active discussions with its Channel Partners and several large potential end-
customers. The discussions are well progressed and are expected to result in additional
revenue for the Group. However, at present a substantial proportion of the forecast
revenue remains uncommitted and if the Group and Company are unable to secure an
appropriate combination of new revenue contracts, cost reductions, and/or further
funding, then the Group and Company may not have sufficient resources to meet their
liquidity requirements over the foreseeable future. Accordingly, a material uncertainty
exists which may cast significant doubt about the Group’s and the Company’s ability
to continue as going concerns. Nevertheless, after making appropriate enquiries 
and considering the assumptions and uncertainties described above, the Directors
have a reasonable expectation that the Group and Company will have adequate resources
to continue operating at least until 30 September 2023. Therefore, the Directors
continue to adopt the going concern basis in preparing the interim condensed consolidated
financial information and does not include any of the adjustments that would be 
required if the Group or Company were unable to continue as going concerns.

**3          Segmental reporting**

The Directors consider that there is one identifiable business segment that is engaged
in providing individual products or services or a group of related products and 
services that comprise the core business.

The information reported to the Chief Executive Officer, who is considered to be
the Chief Operating Decision Maker (“CODM”), for the purposes of resource allocation
and assessment of performance is based wholly on the overall activities of the Group.
Due to the current size and activities of the Group there is a high degree of centralisation
of activities. The Directors therefore consider that there is one operating, and
hence one reportable, segment for the purposes of presenting information under IFRS
8; that of “Digital experience quality analytics services and associated consultancy
services”. There are no differences between the segment results and the condensed
statement of comprehensive income. The assets and liabilities information presented
to the CODM is consistent with the Statement of Financial Position.  All of the 
Group’s assets and operations are located in the UK and the USA.

**4          Tax

Tax on loss on ordinary activities

|  | **Six months** | Six months | Year | 
|  | **ended** | ended | ended | 
|  | **31 March** | 31 March | 30 September | 
|  | **2022** | 2021 | 2021 | 
| **Current tax:** | ** ** |  |  | 
| UK Corporation tax on losses of the period/year | **–** | (46,781) | (63,705) | 
| Overseas taxes | **75** | 18 | (4,178) | 
|  | ** ** |  |  | 
| **Deferred tax:** | ** ** |  |  | 
| Origination and reversal of timing differences | **(75)** | (2,309) | 1,822 | 
| Total tax credit | **–** | (49,072) | (66,061) |

**5          Loss per share**

The calculation of basic and diluted loss per share for the six months to 31 March
2022 was based upon the loss attributable to ordinary shareholders of £2,849,540(
six months to 31 March 2021: £2,150,074, year ended 30 September 2021: £5,847,195)
and a weighted average number of ordinary shares in issue of 57,294,806 (six months
to 31 March 2021: 50,058,854, year ended 30 September 2021: 53,911,253), calculated
as follows:

**Weighted average number of ordinary shares**

|  | **Six months** | Six months | Year | 
|  | **ended** | ended | ended | 
|  | **31 March** | 31 March | 30 September | 
|  | **2022** | 2021 | 2021 | 
| Issued ordinary shares at start of period/year | **57,269,321** | 47,642,124 | 47,642,124 | 
| Effect of shares issued | **25,485** | 2,416,730 | 6,269,129 | 
| Weighted average number of shares at end of period/year | **57,294,806** | 50,058,854 | 53,911,253 |

Due to the losses incurred there is no dilutive effect from the issue of share options.

**6          Related party transactions**

There were no transactions entered into with related parties during the period. 
No amounts were outstanding to or from the related parties at 31 March 2022.

During each financial period, the Company entered into numerous transactions with
its subsidiary company, which net off on consolidation; these have not been shown
above.

**7.   Availability of Interim Report

Electronic copies of this Interim Report will be available on the Company’s website
at www.actual-experience.com.

Actual Experience’s goal is to make the digital world work for everyone, everywhere,
all of the time. As the working world evolves post-pandemic, the global shift to
a flexible hybrid model has brought with it a significant challenge; how do businesses
create an environment that gives their people what they need to thrive, whilst protecting
the commercial efficiency of the business and driving growth at the same time?
**
By underpinning their strategic decision making with our data-driven insights, our
customers gain the clarity and confidence needed to build sustainable digital ecosystems
within their organisations – delivering both a great employee experience and increasing
the efficiency of the digital workplace. Powered by over 10 years of academic Human
Experience research, our Digital Workplace Management System doesn’t need any interaction
with employees to provide a unique and highly actionable dataset that People, Technology
and Finance leaders can rely upon to plan impactful projects against their most 
critical agenda items including wellbeing, profitability, DE&I and ESG initiatives.

Share on: