LONDON (ShareCast) - (Sharecast News) - Digital media and technology provider Catenae Innovation reported some operational progress, but concerns over its ongoing viability as a going concern on Monday, in its final results for the year ended 30 September.
The AIM-traded firm said that on the operational front, it created new blockchain intellectual property within Trust in Media for copyright protection during the year, and also launched 'Sequestrum', which it described as a digital repository system utilising blockchain.

It also successfully completed a proof-of-concept exercise for Aston Villa, and signed an agreement with Southend United Football Club post year-end.

Costs had been "greatly reduced", the board said, while it pointed to a five-fold revenue increase.

Looking at the books, revenue was up to £0.16m from £0.02m a year earlier, with the firm's loss from operations narrowing to £1.12m from £2.24m.

The company's total comprehensive loss for the year was £1.11m, down from £2.26m, with its basic and diluted loss per share standing at 0.06p from 0.2p 12 months ago.

"The past 12 months have seen a transformation within the business as the revised strategic plan, which commenced in September 2017, has been implemented," said Catenae Innovation's chairman and chief executive Anthony Sanders.

"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."

Sanders said the management was also pleased to see a fivefold increase in revenue year-on-year - the vast majority of that 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."

However, despite the progress made in operations and the improvements made in the company's loss, concerns were still raised in the results as to Catenae's ongoing viability.

The results stated that the net liability position as at 30 September was £0.89m, widening from £0.55m.

Subsequent to the reporting date, the board said it had been able to agree funding in the form of further share issues raising £0.52m in cash, and clearing £0.08m 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," the board explained.

Catenae said it continued to be reliant upon its continuing ability to manage the timing of settlement both of its current liabilities and future liabilities as they arose.

There was also a need for successful ongoing equity fundraises or loans in the immediate to short term, while sales plans and projections came 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 said they had concluded that the need to generate future funds from further fundraising and from trading activities to satisfy the settlement of its ongoing and future liabilities represented a "material uncertainty", which could cast "significant doubt" upon the firm'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."

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