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5 uses of Blockchain that aren’t cryptocurrency
- What is Blockchain
- 5 alternative uses of Blockchain
- Catenae Innovation: An agnostic tool
The global economy has been in the process of digitalisation since the 1960s. Previous digital technologies were used to improve business processes mainly by delivering the same results in a faster and safer manner.
Blockchain, however, presents us with something different from previous generations of technology — an exchange of value. This innovation has turned into a priority for business leaders across industries — especially in human resources, finance, and utilities.
According to a report from the International Data Corporation (IDC), Blockchain spending is anticipated to reach approximately 12 billion USD by 2022. Industry leaders have quickly realised the disruptive potential of the technology, recognising it as a game changer in many business use cases.
But what is blockchain?
Blockchain is a type of technology that records transactions to a digital ledger where they cannot be changed or altered. These records or blocks of information are linked using cryptography. The info on a blockchain is easily verifiable and open to the public.
Blockchains are also decentralized, so the data is shared with all the computers on the network.
A number of applications are built on the blockchain. Blockchain applications provide a wide variety of solutions you need to improve your business. Keep reading to find out about some of its uses.
5 uses of Blockchain that aren’t Cryptocurrencies
1.) Human Resources
Human resources professionals are responsible for a complex range of interlinked tasks from extensive recruitment and hiring processes, to holiday scheduling. They work with executives on strategy planning and often handle training, benefits and compensation duties. In the process, a great deal of technology comes to play.
According to the Society for Human Resource Management, blockchain could be used to modernise hiring by enabling HR professionals to quickly verify the credentials provided by job candidates and even existing employees. In addition, the association predicts that blockchain can prevent third-party companies from providing inaccurate data about the candidates.
OnSite by Catenae Innovation integrates standard HR management tools with automated tools to manage Visas, Student working, etc. ensuring only appropriate personnel are available to work. Automated holiday booking / authorisation that links directly to the Resource schedule, ensuring everyone knows an individual’s whereabouts.
2.) Accounting and Payroll
Accounting is a textbook example of a field that can profit from blockchain technology. Simply put, accounting is full of challenges — from the over-complex tax code to the paramount need for accuracy and precision. The blockchain can address all of these issues.
The transparency provided by the blockchain can decrease the time auditors spend sampling and validating transactions. By having more time at hand, auditors could focus on controls and other vital tasks.
Catenae’s product Onsite also has the capability to connect to virtually all accounting and reporting systems, improving your ability to process and create a secure financial picture in real-time, saving you valuable data-processing time. Automated timesheet process incorporated rates of pay provides simply Payroll processing.
3.) Remote workforce management
Managing a remote workforce, particularly during large scale events is an extremely challenging task. No matter how much prior planning is done, companies need to know that things are running smoothly and their workforce are in the right place at the right time.
Blockchain can help to streamline the running of a workforce during events, providing up to date information and allowing organisations more time to focus on improving their client service.
For example, OnGuard is a management solution developed in conjunction with and specifically for man-guarding organisations. Providing real-time management of remote workforce with full operative auditing via geo-tagging and time-stamping, Integrated scheduling, timesheet management and incident reporting
4.) Sports Coaching
Sports clubs can be responsible for the management of a great number of players, coaches and staff.
From scheduling physios, tracking player progress and meeting health and safety requirements – sports clubs incorporate a vast number of tasks and processes that require much more than a pen and paper, if they’re to run smoothly and efficiently.
OnSide is a centralised management tool specifically developed for sporting organisations that deals with all the key elements of coaching from scheduling of staff and timesheet processing through to attendee management and reporting.
From coaching risk assessments, to outcome and diversity reporting and information sharing – OnSide improves sports clubs administration processes, increases efficiency and enhances the accuracy of data and reporting, saving clubs vital time and money.
5.) Legal Processes
Practicing law is no longer just about communication and logical arguments. Technological literacy rapidly becomes the key to staying competitive in the field. Blockchain could be the gateway to enormous amounts of data which might enhance law firms’ ability to find hard evidence or contradictions in the case.
Smart contracts could also come to play, enabling automatic transfers of assets once certain conditions are met. Disputes could be resolved directly and very efficiently, saving judges, lawyers, and clients a lot of time and you lots of money. Blockchain could also bring an end of the escrow accounts, where legal firms hold the money until the previously specified conditions are met.
Smart contracts essentially ensure all parties in the agreement do what they are supposed to. These self-automated programs run without downtime and without the interference of external parties. They’re a fantastic tool for when you are forced to do business with jerks, people you don’t trust, or people you simply don’t know.
Blockchain: An agnostic tool
All in all, Blockchain is a fantastic and truly diverse tool that can be employed in a vast range of sectors, and companies.
A point that AIM listed Catenae Innovation (AIM:CTEA) are looking to exemplify. Their product Sequestrum is truly universal application. Whether as a standalone repository for the storage of Copyright material or as a fully integrated blockchain portal, Sequestrum simplifies access to the blockchain, enabling it to be used for ‘Real World’ Solutions.
It is agnostic in terms of both the applications it provides blockchain capabilities too, as well as the actual blockchain platform it is communicating with – providing real choice for our clients.
By Harry Dacres-Dixon
Catenae Innovation #CTEA – Half Yearly Report
Catenae Innovation Plc (“Catenae” or the “Company”), the AIM quoted (AIM: CTEA) provider of digital media and technology, announces its half yearly report for the six months ended 31 March 2019.
HIGHLIGHTS
- OnSuite Proof of Concept agreements converted into Contracts
- Sequestrum (Blockchain) product launched as both standalone product and integrated into existing product ranges
- Expansion to business sectors outside of Football, including Buildings and Facilities Management, Charities and Rugby
- Post period end, a Head of Sales appointed along side a lead generating marketing partner
Tony Sanders, Chief Executive, said:
“The six months under review have seen further progress of the cost reduction exercise combined with growth in the sales of the OnSuite products (i.e. OnSite, OnGuard and OnSide). The Company is now in a position where it is taking advantage of the existing product suite as well as continuing to look at opportunities to expand into new sectors and diversify its revenue streams.”
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
For further information:
Catenae Innovation Plc
Tony Sanders Tel: 020 7929 7826
Cairn Financial Advisers LLP, Nominated Adviser
Liam Murray / Jo Turner / Ludovico Lazzaretti Tel: 020 7213 0880
Alexander David Securities Limited, Joint Broker
David Scott / James Dewhurst Tel: 020 7448 9820
Turner Pope Investments Limited, Joint Broker
Andrew Thacker Tel: 020 3621 4120
CHIEF EXECUTIVE’S STATEMENT
This period has seen further progress of the cost reduction exercise combined with year-on-year growth in the sales for the same H1 period of the OnSuite products (i.e. OnSite, OnGuard and OnSide). The team is now in place to take the revenue generating sections of the business forward to create positive value.
Contracts
In December 2018, STM Security UK Ltd signed a contract for OnGuard Plus (OnGuard incorporating Sequestrum), which provides increased visibility and proof of work for their man-guarding sector. This was followed in January 2019 with the launch of OnSite (incorporating Sequestrum, the Company’s proprietary distributed ledger technology), an inspection and auditing tool that utilises blockchain to provide immutable records and proof of work for digital inspections. The first such contract was signed in January 2019 with Firedoor Guardian Ltd for use in their fire door inspection service. The value of this contract proved that the market will pay for ‘best in class’ products.
As previously announced, we have also seen an increasing number of contracts being signed following successful proof of concept agreements. The Company has continued to target the football sector with its OnSide product and has signed a number of contracts as well as continuing to carry out proof of concept agreements with new clubs. In January 2019, the first non-football proof of concept agreement for OnSide was signed with the Harlequins Foundation the community arm of Harlequins Rugby, taking the product into the Rugby sector, and post year-end agreed a contract with a Charity organisation that has no link to football or sport in general.
In addition, the Company has integrated Sequestrum, Catenae’s distributed ledger technology (blockchain), into its core product suite, providing clients with the ability to store critical and regulatory reports in an immutable form within the Sequestrum repository, providing auditable proof of both the existence of the report as well as its original content.
Sales Team
Post period end, in May 2019, the Board announced the appointment of a Head of Sales. One of his first actions has been the appointment of a leading marketing partner to engage targeted organisations focused upon the core sectors for the OnSuite products. Although in its early stages, we are already seeing an increase in pipeline activity and appointments with potential new customers.
Trust in Media Joint Venture
As announceed on 26 March 2018, the Company entered into a Joint Venture (“JV”) with Martin Heath and that JV would trade as Trust in Media Ltd. The board has now taken steps to place Trust in Media Ltd into liquidation as that venture has not performed as expected. The purpose of the JV was to produce payment processing, copyright and intellectual property solutions, initially within the Media industry, utilising a combination of private and public blockchain technologies including Catenae’s Sequestrum.
Funding
The Board has continued to review the expenditure of the business to ensure that the appropriate resources are in place to allow the Company to focus on marketing and selling the products that are now developed. In addition, the Board has continued to manage the balance sheet with net liabilities reduced to £399,980 (30 Sept 2018: £891,929).
During the period, the Company raised funds through the issue of shares to support the development of the business. The Company raised £995,000 cash and settled £95,055 of services through the issue of shares. The Company continues to carefully manage its working capital position and is currently considering a number of funding opportunities. Further announcements will be made in due course.
Outlook
The board is also looking to further strengthen its capabilities and expects to announce changes in due course.
The Company is now in a position where it is taking advantage of the existing product suite and is seeing growth in terms of potential pipeline and converted sales. The Company continues to look at opportunities that enable it to expand its reach into new sectors and to significantly increase its growth.
Tony Sanders
Chief Executive Officer
STATEMENT OF COMPREHENSIVE INCOME
| Unaudited six months ended 31 March 2019 £ |
Unaudited six months ended 31 March 2018 £ |
Audited year ended 30 Sept 2018 £ |
|
|
Revenue |
68,857 |
10,372 |
157,218 |
|
Cost of sales |
– |
– |
– |
|
Gross profit |
68,857 |
10,372 |
157,218 |
|
Administrative expenses |
(572,134) |
(562,451) |
(1,282,027) |
| (572,134) | (562,451) | (1,282,027) | |
|
Loss from operations |
(503,277) |
(552,079) |
(1,124,809) |
|
Net Finance income/(expense) |
44 |
11 |
(2,460) |
|
Loss before taxation |
(503,233) |
(552,068) |
(1,127,269) |
|
Taxation credit |
– |
– |
20,481 |
|
Total comprehensive loss for the year |
(503,233) |
(552,068) |
(1,106,788) |
| Attributable to equity shareholders of the parent |
(503,233) |
(552,068) |
(1,106,788) |
|
Total basic and diluted loss per share |
(0.04) |
(0.05) |
(0.06) |
There were no comprehensive income and expense items (2018: nil) other than those reflected in the above income statement. All results relate to continuing activities.
STATEMENT OF FINANCIAL POSITION
| Note | Unaudited six months ended 31 March 2019
£ |
Unaudited six months ended 31 March 2018
£ |
Audited year ended 30 Sept 2018
£ |
|
| Non-current assets | ||||
| Intangible assets | 11 | 11 | 11 | |
| 11 | 11 | 11 | ||
|
Current assets |
||||
| Trade and other receivables | 101,394 | 42,439 | 48,864 | |
| Cash and cash equivalents | 319,146 | 125,846 | 49,105 | |
| 420,540 | 168,285 | 97,969 | ||
| Current liabilities | ||||
| Trade and other payables | (651,530) | (741,025) | (674,247) | |
| Interest-bearing loans | (169,001) | (158,300) | (315,662) | |
| (820,531) | (899,325) | (989,909) | ||
| Net Liabilities | (399,980) | (731,029) | (891,929) | |
|
Capital and reserves attributable to equity holders of the company |
||||
| Share capital | 4 | 3,173,601 | 1,925,435 | 2,078,601 |
| Share premium account | 17,068,371 | 18,124,709 | 16,999,644 | |
| Shares to be issued | 18,700 | 50,000 | 187,245 | |
| Share reserve | (83,333) | (1,250,000) | (83,333) | |
| Merger reserve | 11,119,585 | 11,119,585 | 11,119,585 | |
| Capital Redemption Reserve | 2,732,904 | 2,732,904 | 2,732,904 | |
| Retained losses | (34,429,808) | (33,433,662) | (33,926,575) | |
| Total Equity | (399,980) | (731,029) |
(891,929) |
STATEMENT OF CASH FLOWS
| Unaudited six months ended 31 March 2019 £ |
Unaudited six months ended 31 March 2018 £ |
Audited year ended 30 Sept 2018 £ |
|
|
Loss for the period |
(503,233) |
(552,068) |
(1,106,788) |
| Adjustments for: | |||
| Net bank and other interest (income) / charges | (44) | 2,121 | 2,460 |
| Issue of share options / warrant charge | – | 6,318 | 68,126 |
| Services settled by the issue of shares | 63,782 | 38,000 | 317,513 |
|
Net (loss) before changes in working capital |
(439,495) |
(505,629) |
(718,689) |
| (Increase) / decrease in trade and other receivables | (52,530) | 34,699 | 28,272 |
| (Decrease) / increase in trade and other payables |
(22,720) | (321,816) | (411,961) |
|
Cash from operations |
(514,745) |
(792,746) |
(1,102,378) |
|
Interest received |
44 |
11 |
15 |
| Interest paid | – | – | (2,475) |
| Net cash flows from operating activities | (514,701) | (792,735) | (1,104,838) |
|
Investing activities |
|||
| Investment in joint venture | – | (10) | (10) |
| Net cash flows from investing activities | – | (10) | (10) |
|
Financing Activities |
|||
| Issue of ordinary share capital | 931,403 | 305,000 | 381,500 |
| Repayment of loan | (210,842) | (241,227) | (375,090) |
| New loans raised | 64,181 | 105,000 | 397,725 |
| Net cash flows from financing activities | 784,742 | 168,773 | 404,135 |
|
Net increase / (decrease) in cash |
270,041 |
(623,972) |
(700,713) |
| Cash and cash equivalents at beginning of period | 49,105 | 749,818 | 749,818 |
| Cash and cash equivalents at end of period | 319,146 | 125,846 | 49,105 |
STATEMENT OF CHANGES IN EQUITY
| Share Capital | Share Premium | Shares to be issued | Other reserves | Retained losses | Total Equity | |
| £ | £ | £ | £ | £ | £ | |
| Balance at 31 March 2018 | 1,925,435 | 18,124,709 | 50,000 | 12,602,489 | (33,433,662) | (731,029) |
| Loss for the period | – | – | – | – | (554,720) | (554,720) |
| Conclusion of defaulting shares issue | – | (1,166,667) | – | 1,166,667 | – | – |
| Share issue agreed in advance | – | – | 137,245 | – | – | 137,245 |
| Share capital issued | 153,166 | 41,602 | – | – | – | 194,768 |
| Share options charge | – | – | – | – | 61,807 | 61,807 |
| Balance at 30 Sept 2018 | 2,078,601 | 16,999,644 | 187,245 | 13,769,156 | (33,926,575) | (891,929) |
| Loss for the period | – | – | – | – | (503,233) | (503,233) |
| Share issue agreed in advance | – | – | (168,545) | – | – | (168,545) |
| Share capital issued | 1,095,000 | 68,727 | – | – | – | 1,163,727 |
| Share options charge | – | – | – | – | – | – |
| Balance at 31 March 2019 | 3,173,601 | 17,068,371 | 18,700 | 13,769,156 | (34,429,808) | (399,980) |
NOTES TO THE HALF YEARLY REPORT
1. General information
The principal activity of Catenae Innovation Plc (“Catenae” or “the Company”) is the provision of digital media and technology.
Catenae is incorporated in the United Kingdom with registration number 4689130. Catenae is domiciled in the United Kingdom and has its registered office at 27 Old Gloucester Street, London WC1N 3AX, and this is its principal place of business for the Company is 199 Bishopsgate, London
EC2M 3TY.
Catenae’s shares are quoted on the AIM market of the London Stock Exchange.
Catenae’s financial statements are presented in Pounds Sterling (£).
This financial information has been approved for issue by the Board of Directors on 27 June 2019.
2. Basis of preparation
The financial information in the half yearly report has been prepared using the recognition and measurement principles of International Accounting Standards, International Financial Reporting Standards and Interpretations adopted for use in the European Union (collectively Adopted IFRSs). The principal accounting policies used in preparing the half yearly report are those the Company expects to apply in its financial statements for the year ending 30 September 2019 and are unchanged from those disclosed in the Directors’ Report and financial statements for the year ended 30 September 2018.
The financial information for the six months ended 31 March 2019 and the six months ended 31 March 2018 is unaudited and does not constitute the Company’s statutory financial statements for those periods. The comparative financial information for the full year ended 30 September 2018 has, however, been derived from the audited statutory financial statements for that period. A copy of those statutory financial statements has been delivered to the Registrar of Companies.
While the financial figures included in this half-yearly report have been computed in accordance with IFRSs applicable to interim periods, this half-yearly report does not contain sufficient information to constitute an interim financial report as that term is defined in IAS 34.
Going concern
As stated in the accounts for the year to 30 September 2018, the future business model of the Company is based around the generation of sustainable revenues and profits through strategic partnerships and internal projects. As described in the Chief Executive’s statement, progress has been and continues to be made to develop the Company’s activities and associated revenues. However, as also noted in the 30 September 2018 accounts, the Company needs to raise further funds from the placing of shares or through other means, whilst the revenues and profits from these solutions are fully developed.
During the period the Company has raised funds of £995,000 through the issuing of shares for cash and settled £95,055 of services through the issue of shares.
In line with the plans and projections prepared by the Board, the Company’s activities continue to build, however in accordance with those plans, in the short term the Company needs to continue to raise funds from a combination of trading and placement of shares to fund its activities.
3. Loss per share
The calculation of the basic loss per share is based on the loss attributable to ordinary shareholders divided by the average weighted number of shares in issue during the period. The calculation of diluted loss per share is based on the basic loss per share, adjusted to allow for the issue of shares and the post tax effect of dividends and interest, on the assumed conversion of all other dilutive options and other potential ordinary shares.
There were 162,702,116 share options and 110,931,460 share warrants outstanding at 31 March 2019 (2018: 163,213,116 and 385,098,130), however the figures have not been adjusted to reflect conversion of these share options as the effects would be anti-dilutive.
| Loss for 6 months to 31 March 2019 £ |
Weighted average number of shares | Per share amount (pence) |
Loss for 6 months to 31 March 2018 £ |
Weighted average number of shares | Per share amount (pence) |
| (503,233) | 1,321,073,786 | (0.04) | (552,068) | 1,120,104,463 | (0.05) |
4. Share Capital
| 31 March 2019 |
30 Sept 2018 |
||||
| Number | £ | Number | £ | ||
| Allotted, called up and fully paid | |||||
| Ordinary shares of 0.1p | 3,173,601,652 | 3,173,601 | 2,078,601,652 | 2,078,601 | |
| 3,173,601,652 | 3,173,601 | 2,078,601,652 | 2,078,601 | ||
On 7 November 2018, the Company issued 500,000,000 ordinary shares at a price of 0.12 pence per share for a cash consideration of £524,945 and for settlement of outstanding trade payables of £75,055.
On 5 March 2019, the Company issued 595,000,000 ordinary shares at a price of 0.10 pence per share for a cash consideration of £575,000 and for the settlement of outstanding trade payables of £20,000.
5. Availability of the Half Yearly Report
Copies of the half yearly report are available to shareholders on the Company’s website at www.catenaeinnovation.com and from the Company’s trading address: 199 Bishopsgate, London EC2M 3TY.
Catenae Innovation #CTEA signs renewable licence framework agreement to use ChainZy
Catenae (AIM:CTEA), the AIM quoted provider of digital media and technology announces it has entered into a 5-year renewable licence framework agreement with Z/Yen Group Limited for the use of “ChainZy” – Z/Yen’s distributed ledger platform.
ChainZy delivers high speed, secure data and transaction handling capabilities utilising distributed ledgers. ChainZy is designed to be used in market sectors that require the secure, authoritative and immutable history of auditable transactions: financial services, private utilities, the public sector and many other areas of business and government activity.
The ChainZy platform can be utilised to support Catenae’s universal digital repository application, Sequestrum, as well as future applications the Company may develop. Sequestrum provides the immutability function for the recently launched OnSite product and ChainZy provides the distributed ledger platform in this instance. ChainZy has been extensively tested with Sequestrum and is our preferred platform.
The use of the Chainzy product and associated licence fee will be dependent on the Company’s solution for each specific client. The fee structure will take the form of a licence fee and / or a per transaction fee.
Professor Michael Mainelli, Executive Chairman and co-founder Z/Yen Group Limited commented: “Catenae’s business is the perfect synergetic match for ChainZy. We have a good working relationship over many years with their excellent CTO, Alan Simpson. Their desire to deliver smart ledgers for responsible independent time recording on our ‘Internet of Record’, ChainZy, is commendable. We look forward to developing more innovations that fundamentally alter the way business does business and government governs.”
Tony Sanders, CEO commented: “We are pleased to formalise our relationship with Z/Yen, who have been working in the distributed ledger arena for a good number of years under the world-renowned thought leadership of Professor Mainelli. We look forward to this mutually beneficial relationship, collaborating together to develop real-world, commercially viable solutions that meet pressing corporate and organisational needs.”
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. The person who arranged for release of this announcement on behalf of the Company was Tony Sanders (Chief Executive Officer).
For further information:
| Catenae Innovation Plc Tony Sanders |
Tel: 020 7929 7826 |
|
Cairn Financial Advisers LLP, Nominated Adviser |
Tel: 020 7213 0880 |
|
Alexander David Securities Limited, Broker |
Tel: 020 7448 9820 |
Alan Simpson, Chief Technology Officer, Catenae Innovation P.L.C. (LON:CTEA) Interview
Catenae (AIM: CTEA), the AIM quoted provider of digital media and technology announces the following changes to its senior Management team and Board.
Proposed appointment of Alan Simpson CTO to the Executive Board
Alan is a highly regarded technologist with vast experience in a number of high-profile projects in a career ranging from Military Cryptologist through to those projects which can be publicly named such as being the Technical Delivery Manager for BBC’s flagship iPlayer project.
Alan joined the Company in June 2018 and has been responsible for the delivery of technical projects within the Company including Sequestrum, its DLT/Blockchain platform, and the recently launched Onsite. This appointment recognises the contribution and commitment Alan has shown to the Company.
This, combined with his broad technical expertise, and commercial experience will be a welcome addition to the Board. A further announcement providing information pursuant to AIM Rule Schedule 2(g) will be made in due course.
Catenae Innovation #CTEA – Changes to Senior Management Team and Board
Catenae (AIM: CTEA), the AIM quoted provider of digital media and technology announces the following changes to its senior Management team and Board.
Proposed appointment of Alan Simpson CTO to the Executive Board
Alan is a highly regarded technologist with vast experience in a number of high-profile projects in a career ranging from Military Cryptologist through to those projects which can be publicly named such as being the Technical Delivery Manager for BBC’s flagship iPlayer project. Alan joined the Company in June 2018 and has been responsible for the delivery of technical projects within the Company including Sequestrum, its DLT/Blockchain platform, and the recently launched Onsite. This appointment recognises the contribution and commitment Alan has shown to the Company. This, combined with his broad technical expertise, and commercial experience will be a welcome addition to the Board. A further announcement providing information pursuant to AIM Rule Schedule 2(g) will be made in due course.
Appointment of John Farthing Chief Financial Officer
The Company will promote John Farthing from his current position within its subsidiary Trust in Media to become the Company’s Chief Financial Officer. John qualified as a Chartered Accountant in 1988 following which he moved to stockbroking, gaining significant experience with start-ups and smaller companies with a focus in the software and technology sectors. Mr Farthing is also a Chartered Fellow of the Chartered Institute for Securities & Investment, having been involved in corporate acquisitions and disposals as well as fund raising. John will report to the Board and be responsible for day to day financial operations and strategic input, augmenting the existing governance and financial controls. This is a non-Board appointment.
Tony Sanders CEO, commented;
“The Company has reached the stage in its development where it now has commercially viable product lines, demonstrably capable of delivering revenues. It is essential that the team are focussed on executing a robust sales and marketing strategy to deliver these revenues. With this in mind, the Board wants to ensure it has the correct management team in place with the right skillsets to enable the Company to concentrate on delivering its true potential. The above appointments will be augmented with suitably qualified Sales Management in the very near future. Obviously, we are very conscious of managing our cost base and can confirm that as a result of these and other changes within the Company, the net effect on the cost base is neutral.”
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. The person who arranged for release of this announcement on behalf of the Company was Tony Sanders (Chief Executive Officer).
For further information:
| Catenae Innovation Plc
Tony Sanders |
Tel: 020 7929 7826 |
|
Cairn Financial Advisers LLP, Nominated Adviser Liam Murray / Jo Turner |
Tel: 020 7213 0880 |
|
Alexander David Securities Limited, Broker David Scott / James Dewhurst |
Tel: 020 7448 9820 |
Catenae Innovation #CTEA: OnSite – Contract Signed
Catenae (AIM:CTEA), the AIM quoted provider of digital media and technology announces it has signed its first agreements for OnSite with Firedoor Guardian Limited (“FDG”), a provider of building management and inspection services to the construction industry.
OnSite integrates the Company’s blockchain technology, Sequestrum, which was launched in December 2018. The agreements have an aggregate value of £50,000 which will be invoiced immediately.
The agreements include a licence agreement and a support agreement. The agreements have provision for pricing of additional volume related transactions that may occur during the term of the contract.
FDG wishes to create an immutable database of their inspection records and audit information as required under the BS9999 and The Regulatory Reform (Fire Safety) Order 2005 and as recommended in the independent review of Building Regulations and Fire Safety report led by Dame Judith Hackett following the Grenfell Tower fire.
OnSite utilises the latest mobile and cloud technologies and integrates Catenae’s distributed ledger technology which provides clients with the ability to store critical and regulatory reports in an immutable form within the Sequestrum repository providing auditable proof of both the existence of the report as well as its original content. OnSite provides the ability for companies to manage and schedule their workforce and provides a universal inspection and reporting tool that has been adapted to meet the regulatory reporting standards for this industry.
The integration of Sequestrum provides full ‘Proof of Work’ by ensuring that inspection reports are stored in an immutable form directly from the mobile input device, recording the geo-coordinates of the device and centralised time stamping as meta data for full auditability.
Guy Meyer, a director of the Company is also a non-executive director and shareholder in FDG, consequently the entering into the agreements is being deemed a related party transaction (the “Transaction”) under the AIM Rules for Companies. The directors independent of the Transaction, having consulted with the Company’s nominated adviser, believe that the terms of the transaction are fair and reasonable insofar as shareholders are concerned.
Tony Sanders, CEO, said: “We are pleased to sign this initial agreement for our new product OnSite so soon after the product launch in December 2018, this follows extensive testing and proof of concept programme with the client. Being able to show blockchain technology being used in a ‘real world’ application was key to the Company accepting the opportunity to present its solutions at the UK Investor City Forum event on 21st January 2019, as there are not many opportunities to see blockchain technology working beyond conceptual applications. We hope to be making further announcements shortly.”
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. The person who arranged for release of this announcement on behalf of the Company was Tony Sanders (Chief Executive Officer).
For further information:
| Catenae Innovation Plc Tony Sanders |
Tel: 020 7929 7826 |
|
Cairn Financial Advisers LLP, Nominated Adviser |
Tel: 020 7213 0880 |
|
Alexander David Securities Limited, Broker |
Tel: 020 7448 9820 |
Catenae Innovation #CTEA – Posting of Report and Accounts and Notice of Annual General Meeting
The Company announces its audited annual report and accounts for the year to 30 September 2018 has been posted to shareholders.
Furthermore, the Company has posted a Notice of Annual General Meeting (“AGM”) to shareholders. The AGM will be held at the offices of WeWork, 1 Primrose Street, London EC2A 2EX, at 11.00 am on Friday 1st February 2019.
For further information:
| Catenae Innovation Plc
Tony Sanders |
Tel: 020 7929 7826 |
|
Cairn Financial Advisers LLP, Nominated Adviser Liam Murray / Jo Turner |
Tel: 020 7213 0880 |
|
Alexander David Securities Limited, Broker David Scott / James Dewhurst |
Tel: 020 7448 9820 |
Catenae Innovation #CTEA – Final Results
Catenae (AIM:CTEA), the AIM quoted provider of digital media and technology announces its final results for the year ended 30 September 2018.
Key points
- Creation of Blockchain Intellectual Property within Trust in Media for copyright protection
- Launch of Sequestrum – a digital repository system utilising blockchain
- Aston Villa successfully completed proof of concept exercise
- Southend United Football Club sign agreement post year-end
- Costs greatly reduced and five-fold revenue increase
The independent auditor’s report for the year ended 30 September 2018 contains a material uncertainty paragraph in respect of going concern. An extract taken from the text of the auditor’s opinion is set out below in part 1 of the notes to this announcement.
Anthony Sanders, Chief Executive and Chairman, commented:
“The past 12 months have seen a transformation within the business as the revised strategic plan, which commenced in September 2017, has been implemented. The new management structure is in place and the streamlining of the business units has been completed resulting in a drastic reduction in the cost base of the business. The management are also pleased to see a five-fold increase in revenue year on year, the vast majority of this as new products were rolled out in the second half of the year. The Company is now firmly focussed on translating this interest in the product set to sustainable revenues.”
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. The person who arranged for release of this announcement on behalf of the Company was Anthony Sanders (Chief Executive Officer).
For further information:
| Catenae Innovation Plc Tony Sanders |
Tel: 020 7929 7826 |
|
Cairn Financial Advisers LLP, Nominated Adviser |
Tel: 020 7213 0880 |
|
Alexander David Securities Limited, Broker |
Tel: 020 7448 9820 |
CHAIRMAN’S STATEMENT
Business Progression
The past 12 months have seen a transformation within the business as the revised strategic plan, which commenced in September 2017, has been implemented. This was formalised in March 2018 with the change of name from Milestone Group Plc to Catenae Innovation Plc. The new management structure is in place and the streamlining of the business units has been completed with the inherent reduction in head count. This has resulted in a drastic reduction in the cost base of the business; where there were extra costs for these changes, these have been included within the 2018 accounts.
As the new product areas discussed below have come on stream, one of the key business metrics for the management team is the value of the associated invoices. The management are pleased to see a five-fold increase in revenue year on year (2018: £157,218, 2017: £24,040 on a like for like basis), the vast majority of this as new products were rolled out in the second half of the year.
In March 2018, the Company created a joint venture company, Trust in Media, through the disposal of some shares in Oil Productions Ltd T/A Relative and a rebranding of that entity. Catenae retain 50.5% of the ownership. Trust in Media has since focused on offering technical innovation within the media sector.
Since its formation, Trust in Media has created intellectual property in respect of blockchain technology for use by its own clients as well as licenced to Catenae, where it is embedded into Catenae’s products. Trust in Media has carried out a trial of the Digital Asset Registration tracking technology that it developed. This has now been accepted to sit within the operations of a service provider in the image-licensing sector and is subject to commercial discussion post period. In addition, Catenae has launched two new products, Sequestrum, the Company’s first blockchain application which is a universal digital asset repository and tracking system utilising the Trust in Media intellectual property and OnSite, a Management and Inspection application developed for the construction sector. The revised products also introduce a revised revenue model combining multi-year annuity contracts with per event transactional revenues. Both Sequestrum and OnSite have been trialled in successful pilot projects with potential clients; these are now subject to commercial negotiation.
Sequestrum forms the basis of the Company’s technical strategy. It has been embedded within the legacy products, OnSide and OnGuard, and is integral to OnSite. This development augments their compliance capability of the products by offering the ability to store immutable reports and proof of work functions to their legacy GDPR credentials.
Post period end the Company signed the first commercial agreement for its blockchain technology in the form of its Sequestrum-enabled version of OnGuard. This achieves revenue through a combined annuity licence and transactional fee structure.
This period has seen the each of our existing clients renewing or extending their annuity contracts, new customers signing up for pilot projects and the development of products. The Board has now implemented the new strategy for the business, ensuring that costs are greatly reduced and that all product lines have a commercial focus.
In the meantime, with the advent of the new GDPR rules Catenae’s Mobile Business Solutions products are going from strength to strength. The OnGuard product, targeted at companies with remote workforce, has seen its existing contracts both renew and expand into providing additional services. The OnSide product, which focuses on the sports coaching industry, has also seen its existing contract being renewed with Charlton Athletic, but has had increased interest from a number of football clubs and has recently signed Southend United. Aston Villa also completed a successful pilot within its community foundation. The Company are also in discussion with other football clubs and have recently commenced discussions within Premiership Rugby.
Working capital, fund raisings and other matters
During the year, the Company issued 299,833,335 new ordinary shares for a total consideration of £509,500, of which £356,500 was received in cash during the year and £153,000 was in exchange for goods and services. Since the year-end, the Company has issued 500,000,000 new ordinary shares for a total consideration of £600,000 of which £25,000 cash was received in the current year (held within shares to be issued reserve at the year-end), £167,245 was in exchange for goods and services (agreed during the year and also held within shares to be issued), £395,000 cash received post year-end and £12,755 was in exchange for goods and services post year-end.
The Company continues to carefully manage its working capital position and will need to raise further monies through subscriptions for new shares in the short term while the efforts from last year bring about the creation of new revenue lines. The Company remains firmly focused on generating revenue through developing its activities. Protecting the interest of the Company’s shareholders is a priority and the Board’s strategy is to seek to raise funds on a basis that is fair to all.
Results for the year
The Company had a net loss for the year of £1,106,788 (2017: £2,262,319), showing real improvement in the management of costs, and revenues of £157,218 (2017: £28,795), of which £nil (2017: £4,755) relates to discontinued operations. The Company has a statement of financial position at the year-end showing net liabilities of £891,929 (2017: £552,280).
These results are presented under European Union Adopted International Financial Reporting Standards (“EU Adopted IFRS”).
Conclusion
The Board saw the restructuring of the business as critical to delivering the new business strategy and became the primary focus for much of the year. The period saw the commencement of the recovery for the business with the introduction of the new product set and the Board are pleased to see that the revised products areas are attracting both interest and revenues. The Company is now firmly focussed on translating this interest in the product set to sustainable revenues.
Anthony Sanders
Chief Executive Officer and Chairman
28 December 2018
Statement of comprehensive income for the year ended 30 September 2018
| 2018 | 2017 | |||
| £ | £ | |||
| Revenue | 157,218 | 24,040 | ||
| Cost of sales | – | (1,964 | ) | |
| Gross profit | 157,218 | 22,076 | ||
| Realised gain on disposal | – | 1 | ||
| Administrative expenses | (1,282,027 | ) | (2,266,777 | ) |
| (1,282,027 | ) | (2,266,776 | ) | |
| Loss from operations | (1,124,809 | ) | (2,244,700 | ) |
| Net finance expense | (2,460 | ) | (1,486 | ) |
| Loss before taxation | (1,127,269 | ) | (2,246,186 | ) |
| Taxation credit | 20,481 | – | ||
| Loss from continuing operations | (1,106,788 | ) | (2,246,186 | ) |
| (Loss) from discontinued operations net of tax | – | (16,133 | ) | |
| Total comprehensive loss for the year | (1,106,788 | ) | (2,262,319 | ) |
|
|
||||
| Basic and diluted loss per share (pence) | (0.06 | ) | (0.20 | ) |
Statement of financial position at 30 September 2018 Company No: 04689130
| 2018 | 2017 | |||
| £ | £ | |||
| Non-current assets | ||||
| Intangible assets | 1 | 1 | ||
| Investments | 10 | – | ||
| 11 | 1 | |||
| Current assets | ||||
| Trade and other receivables | 48,864 | 77,137 | ||
| Cash and other equivalents | 49,105 | 749,818 | ||
| 97,969 | 826,955 | |||
| Current liabilities | ||||
| Trade and other payables | (674,247 | ) | (1,086,209 | ) |
| Interest bearing loans | (315,662 | ) | (293,027 | ) |
| (989,909 | ) | (1,379,236 | ) | |
| Net (liabilities) | (891,929 | ) | (552,280 | ) |
| Capital and reserves | ||||
| Share capital | 2,078,601 | 1,778,768 | ||
| Share premium account | 16,999,644 | 17,954,376 | ||
| Shares to be issued | 187,245 | – | ||
| Share reserve | (83,333 | ) | (1,250,000 | ) |
| Merger reserve | 11,119,585 | 11,119,585 | ||
| Capital redemption reserve | 2,732,904 | 2,732,904 | ||
| Retained losses | (33,926,575 | ) | (32,887,913 | ) |
| Shareholders’ funds | (891,929 | ) | (552,280 | ) |
Statement of cash flows for the year ended 30 September 2018
| Cash flow from operating activities | 2018 | 2017 | ||
| £ | £ | |||
| Loss for the year | (1,106,788 | ) | (2,262,319 | ) |
| Adjustments for: | ||||
| Amortisation of intangible assets | – | – | ||
| Net bank and other interest charges | 2,460 | 1,486 | ||
| Services settled by the issue of shares | 317,513 | 45,326 | ||
| Issue of share options and warrants charge | 68,126 | 68,581 | ||
| Net cash outflow before changes in working capital |
(718,689 |
) |
(2,146,926 |
) |
| Decrease in trade and other receivables | 28,272 | 74,362 | ||
| (Decrease) / Increase in trade and other payables | (411,961 | ) | 25,810 | |
| Cash outflow from operations | (1,102,378 | ) | (2,046,754 | ) |
| Interest received | 15 | 14 | ||
| Interest paid | (2,475 | ) | – | |
| Net cash flows from operating activities | (1,104,838 | ) | (2,046,740 | ) |
| Investing activities | ||||
| Investment in joint venture | (10 | ) | – | |
|
Net cash flows from investing activities |
(10 |
) |
– |
|
| Financing activities | ||||
| Issue of ordinary share capital | 381,500 | 2,516,220 | ||
| Repayment of loan | (375,090 | ) | (155,000 | ) |
| New loans raised | 397,725 | 312,500 | ||
| Net cash flows from financing activities | 404,135 | 2,673,720 | ||
| Net (decrease) / increase in cash | (700,713 | ) | 626,980 | |
| Cash and cash equivalents at beginning of year | 749,818 | 122,838 | ||
| Cash and cash equivalents at end of year | 49,105 | 749,818 | ||
Statement of changes in equity for the year ended 30 September 2018
| Share Capital | Share Premium | Shares to be issued | Other Reserves | Retained Earnings | Total Equity | ||||||
| £ | £ | £ | £ | £ | £ | ||||||
| Balance at 30 Sept 2018 |
783,998 |
15,073,350 |
63,081 |
13,852,489 |
(30,694,175 |
) |
(921,257 |
) |
|||
| Loss for the year | – | – | – | – | (2,262,319 | ) | (2,262,319 | ) | |||
| Share capital issued | 994,770 | 2,881,026 | (63,081 | ) | (1,250,000 | ) | – | 2,562,715 | |||
| Share options charge | – | – | – | – | 68,581 | 68,581 | |||||
| Balance at 30 Sept 2017 |
1,778,768 |
17,954,376 |
– |
12,602,489 |
(32,887,913 |
) |
(552,280 |
) |
|||
| Loss for the year | – | – | – | – | (1,106,788 | ) | (1,106,788 | ) | |||
| Conclusion of defaulting shares issue | – | (1,166,667 | ) | – | 1,166,667 | – | – | ||||
| Share issue agreed in advance | – | – | 187,245 | – | – | 187,245 | |||||
| Share capital issued | 299,833 | 211,935 | – | – | – | 511,768 | |||||
| Share options charge | – | – | – | – | 68,126 | 68,126 | |||||
| Balance at 30 Sept 2018 |
2,078,601 |
16,999,644 |
187,245 |
13,769,156 |
(33,926,575 |
) |
(891,929 |
) |
|||
Notes to the financial information
1. Basis of preparation
Catenae Innovation Plc is a company registered and resident in England and Wales.
The financial information set out in this announcement does not constitute the Company’s statutory accounts, as defined in Section 435 of the Companies Act 2006, for the years ended 30 September 2018 or 30 September 2017, but is derived from the 2018 Annual Report. Statutory accounts for 2017 have been delivered to the Registrar of Companies and those of 2018 will be delivered in due course.
The statement of comprehensive income, statement of financial position, statement of cash flows, statement of changes in equity (above) and associated notes are extracts from the financial statements and do not constitute the Company’s statutory accounts.
Statutory accounts for the year to 30 September 2017 and 30 September 2018 have been reported on by the Independent Auditors.
The financial statements have been prepared and approved by the Directors in accordance with International Financial Reporting Standards as adopted by the EU (“EU Adopted IFRSs”).
The Independent Auditor’s Report on the Annual Report and Financial Statements for 2017 and for 2018 was unqualified, but did draw attention to matters by way of emphasis relating to the basis of preparation, which is reproduced below and was substantively similar for both years.
In forming the Auditor’s opinion on the financial statements, which is not modified, the Auditor’s have considered the adequacy of the disclosure made in note 1 to the financial statements concerning the Company’s ability to continue as a going concern. “The going concern status of the company is dependent upon the management of the timing of settlement of its liabilities and the raising of further funds in the immediate to short term and thereafter on the forecast profitability of key projects which have recently commenced and for which the degree of success cannot yet be reliably demonstrated.
Forecasts prepared by management indicate that if they are unable to manage the company’s liabilities as planned or the external fundraising does not occur in the immediate term and, subsequently, the future projects do not prove as profitable as forecast the company would have an immediate requirement to seek alternative sources of funding. As stated in note 1, these conditions indicate that a material uncertainty exists which casts significant doubt on the company’s ability to continue as a going concern.”
The basis of preparation is reproduced below.
Going concern
The Company’s business activities, together with the factors likely to affect its future development, performance and position are set out in the Chairman’s statement and below. The financial position of the Company, its cash flows, liquidity position and borrowing facilities are described in the financial statements. In addition, note 16 to the financial statements includes the Company’s objectives, policies and processes for managing its capital; its financial risk management objectives; details of its financial instruments; and exposures to credit risk and liquidity risk.
The net liability position as at 30 September 2018, being the Company’s financial year-end, was £891,929 (2017: £552,280). Subsequent to the reporting date, the Board has been able to agree funding in the form of further share issues raising £524,945 in cash and clearing £75,055 worth of creditors through share issue. The funding received to date will go part way to cover year-end liabilities, and the Company will be dependent upon future funding and revenues to meet the remaining obligations, as discussed below.
The Company continues to be reliant upon its continuing ability to manage the timing of settlement both of its current liabilities and future liabilities as they arise. There is also a need for successful on-going equity fundraises and / or loans in the immediate to short term thereafter, while sales plans and projections come into effect, especially in relation to revenues generated from existing and new products. The Board has prepared forecasts to reflect the revenues expected to be generated by the Company. The Company is fully focused on ensuring that sales plans are followed to ensure that the business becomes self-sustaining in the near future.
The Directors have concluded that the need to generate future funds from further fundraising and from trading activities to satisfy the settlement of its on-going and future liabilities represents a material uncertainty, which may cast significant doubt upon the Company’s ability to continue as a going concern. Nevertheless, after making enquiries and considering this uncertainty and the measures that can be taken to mitigate the uncertainty, the Directors have a reasonable expectation that the Company will have adequate resources to continue in existence for the foreseeable future. For these reasons they continue to adopt the going concern basis in preparing the annual report and accounts. The financial statements do not include any adjustments that would result if the Company was unable to continue as a going concern.
2. Loss per share
The calculation of the basic loss per share is based on the loss attributable to ordinary shareholders divided by the weighted average number of shares in issue during the year. The calculation of diluted loss per share is based on the basic loss per share, adjusted to allow for the issue of shares and the post tax effect of dividends and interest, on the assumed conversion of all other dilutive options and other potential ordinary shares.
There were 162,191,116 share options and 432,764,797 share warrants outstanding at the year-end (2017: 163,213,116 and 248,431,460). However, the figures for 2018 and 2017 have not been adjusted to reflect conversion of these share options, as the effects would be anti-dilutive.
| 2018 | 2017 | |||||||||
| Weighted | Weighted | |||||||||
| average | Per share | average | Per share | |||||||
| Loss | number of | amount | Loss | number of | amount | |||||
| £ | shares | Pence | £ | shares | Pence | |||||
| Basic and diluted loss per share attributable to shareholders | (1,106,788 | ) | 1,905,297,999 | (0.06 | ) | (2,262,319 | ) | 1,115,347,198 | (0.20 | ) |
3. Posting of Accounts
The Reports and Accounts of Catenae Innovation Plc, including the Notice of Annual General Meeting will be posted to shareholders shortly.
Share Prophets: Catenae Innovation (CTEA) – first blockchain contract & product updates, remains a buy
Catenae Innovation (CTEA) has announced a first contract for a solution utilising its blockchain technology and updated on its such technology and announced a product launch…
The contract is with a UK-based security company and a customer since 2013, STM Security UK Ltd. It is for OnGuard Plus,“with the ability to store critical and regulatory reports in an immutable form within the Sequestrum repository providing auditable proof of both the existence of the report as well as its original content”.
Sequestrum is Catenae’s Distributed Ledger technology digital repository – for which it has recently completed final testing on the ‘Hyper Ledger Blockchain platform’. It noting this “opens up the opportunity for Sequestrum to be run on the client’s choice of Blockchain platform, significantly broadening its potential application”. The product launch is OnSite – a “management and inspection platform… developed specifically for the construction industry”. It is added “the integration of Sequestrum ensures that inspection reports are stored in an immutable form directly from the mobile input device, recording the geo-coordinates of the device and centralised timestamping as meta data for full auditability”.
On the contract, it is stated “revenue is generated via an annual ‘in advance’ licence fee as well as a transaction fee on a ‘per report’ basis”, though there’s no financial specifics. However, it is added “we hope to make further announcements on further commercial agreements in the near future”– and there is clear positive operational momentum here.
However, the shares are still only slightly ahead of our prior update – and meaning a market cap of still only circa £3 million. With the suggested operational progress indeed looking to be following the financial strengthening, we continue to consider a share price around 0.20p a realistic target – and our stance remains buy.
HotStockRockets Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Catenae Innovation #CTEA – Contract and Product Update
Catenae (AIM:CTEA), the AIM quoted provider of digital media and technology announces it has signed its first contract for a solution utilising its blockchain technology. This agreement is with STM Security UK Ltd (“STM”) who have been customers of the Company since 2013. STM is a UK based security company and a supplier of manned security solutions and customer service staff, providing professional, trained and licensed personnel throughout the UK.
Under the terms of the contract Catenae will supply STM with OnGuard Plus, a business management solution which was specifically developed for the security industry. It utilises mobile and cloud technologies to support the administrative, operational and financial functions of the manned guarding sector. The integration of Catenae’s Sequestrum distributed ledger technology provides clients with the ability to store critical and regulatory reports in an immutable form within the Sequestrum repository providing auditable proof of both the existence of the report as well as its original content. Revenue is generated via an annual ‘in advance’ licence fee as well as a transaction fee on a ‘per report’ basis.
Sequestrum Update – Catenae has recently completed final testing of Sequestrum, Catenae’s Distributed Ledger technology digital repository running on the Hyper Ledger Blockchain platform. This recent technical development opens up the opportunity for Sequestrum to be run on the client’s choice of Blockchain platform, significantly broadening its potential application.
OnSite – The Company announces the launch of its management and inspection platform – OnSite. This product has been developed specifically for the construction industry. The product provides the ability for companies to manage and schedule their workforce and provides a universal inspection and reporting tool that can be adapted to meet the regulatory reporting standards for this industry. The integration of Sequestrum ensures that inspection reports are stored in an immutable form directly from the mobile input device, recording the geo-coordinates of the device and centralised timestamping as meta data for full auditability.
We hope to make further announcements on further commercial agreements in the near future.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. The person who arranged for release of this announcement on behalf of the Company was Tony Sanders (Chief Executive Officer).
For further information:
|
Catenae Innovation PLC |
Tel: 020 7929 7826 |
| Cairn Financial Advisers LLP, Nominated Adviser Liam Murray / Jo Turner |
Tel: 020 7213 0880 |
|
Alexander David Securities Limited, Broker |
Tel: 020 7448 9820 |