17 October 2023

i-nexus Global plc

("i-nexus", the "Company" or the "Group")

Customer Update

i-nexus Global plc (AIM: INX), a leading provider of cloud strategy applications, announces that it was informed on the afternoon of 16 October 2023 that a major legacy customer, currently generating Monthly Recurring Revenue ("MRR") of £54k, does not intend to renew its contract at the calendar year-end. The Board has rapidly put in place mitigating actions such that the impact on the Group's cash flows is minimised and the adjusted EBITDA breakeven position can be substantially preserved. Consequently, the Directors continue to be of the opinion that the Group has sufficient working capital for its present requirements, that is for at least 12 months from the date of this release.

Year-end update

The Board is otherwise pleased to report a steady performance in its financial year to 30 September 2023 ("FY23"), with the Group successfully achieving its objective to deliver improved double-digit net MRR growth, with MRR increasing 16%, to a year-end exit rate of £289k (FY22: £250k).

A particular highlight during the year was the growth of existing accounts, securing £36k (FY22: £10k) in MRR and driving an increase in Net Retention to 107% (FY22: 95%), emphasizing the strength of our client relationships and quality of our product.  While the market remains challenging for new customer wins, the Company secured seven new logos in the year (FY22: nine), with a number of these having expansion opportunities in FY24.

The Group closed FY23 with cash (and cash in transit) of £267k, with the end of the financial year typically representing a cash low point for the business given the seasonality in cash flows arising from the timing of invoicing and collection of the Group's recurring revenue, the majority of which is billed during Q1 and Q2.

Simon Crowther, Chief Executive of i-nexus Global plc, commented:

"While it is always unfortunate to part ways with a valued customer, especially one with whom we have enjoyed a strong working relationship, this was our last remaining client using the older, highly customised version of the i-nexus software, and supporting their unique requirements was resource and cost intensive.

We are pleased to have secured a steady number of new logos whilst delivering on our land and expand strategy with record customer growth. The Board has every confidence our customer strategy is working, with a further £5k of MRR delivered since the year-end.

The focus for the year ahead continues to be expansion within our existing accounts, several of which have considerable growth potential, as well as the improved conversion of new customers.  

While the loss of any customer is a financial setback, market demand for digital strategy solutions and growth opportunities within our customer base remains encouraging and the Board are optimistic about the opportunities and growth potential of the coming year."