A Coventry software company is proposing to raise more than £1.3 million to support it through the immediate and medium term and help fund its growth.
i-Nexus Global PLC, a strategy execution platform provider, believes that the investment is needed to support the company in the immediate to medium term, having regard to its current financial and trading position, and the need for certainty of funding within a limited timeframe.
Chief Executive Simon Crowther, said: “”I would like to take this opportunity to thank shareholders for their continued support during this period of economic uncertainty. The Board maintains its conviction that the market opportunity for enterprise-level strategy execution software is significant. The pressures COVID-19 has placed on businesses has brought this even more into focus, as management teams realise they need a more rigorous approach to organisation-wide strategy execution. The feedback we have received from customers for our recent major product release is encouraging and we continue to build positive momentum in our sales pipeline. The funds now being raised provide us with much-needed working capital and are expected to allow us the flexibility to operate throughout this extended period of uncertainty.”
In May the company released its unaudited results for the six months ended 31 March 2020, reporting group revenue at £2.27 million, down from £2.31 million in the first half of 2019 and a loss before tax of £2.16 million (the loss before tax in the same six month period last year was £1.91 million).
Like many other businesses, the company’s performance during 2020 has been overshadowed by Coronavirus, and i-Nexus Global was forced management to implement drastic measures to preserve cash in response to a sudden and unprecedented drop-off in its customers’ willingness to engage in new sales activity and existing customers’ willingness to pay invoices in accordance with the agreed payment terms.
The Company entered 2020 with new business generation already lower than had been anticipated and, as a result, the Directors implemented a restructuring of the business in January 2020 to preserve cash while seeking to maintain the right structure to support its existing customers, secure new business and continue the development of its strategy execution software. Alongside this restructuring the company implemented a new sales approach designed to restore momentum. Despite early positive signs of this change in strategy, the impact of the COVID-19 Pandemic from March 2020 onwards has caused sales cycles to extend and made it increasingly difficult to forecast future sales.