ChallengerX Plc - Management accounts for the quarters ended 31 December 2023 and 30 September 2023

26 January 2024

ChallengerX plc

                                                           (“ChallengerX”, “CX" or the "Company")

Management accounts for the quarters ended 31 December 2023  and 30 September 2023

ChallengerX  (AQUIS: CXS), the trading company with principal activity of employing both traditional and non-traditional marketing strategies to rapidly “professionalise” amateur and semi-professional sports clubs around the world announces its unaudited management accounts reports for the quarters ended 31 December 2023 and 30 September 2023.

This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.

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Directors Statement

Introduction

ChallengerX plc (the “Company” or “ChallengerX”) is quoted on the Aquis Stock Exchange (“AQSE”) Growth Market. The Company was incorporated on 7 June 2021 and its shares were admitted to trading on 23 December 2021.

Activities during the periods

The company continued to advance its development of a platform for the promotion and marketing of sports clubs in both a traditional and non-traditional way to rapidly “professionalise” amateur and semi-professional sports clubs around the world. 

In August the Company announced that it entered into an exclusive licence agreement with Flash Corp Technologies Ltd (“Flash Corp”) by which the Company has acquired a renewable 13-month license over the rights of FlashBet Wheel App’s design and technology in UK and Europe.

During the period the Company received loan funding of £90,000. The Company transferred 20 million shares from Treasury to the lender as repayment, leaving a balance of 13,226,343 shares in Treasury as of 31 December 2023.

Outlook

The development of the marketing platform and furtherance of the FlashBet Wheel App will require more expenditure.  Additional funds will be sought for this. However, ChallengerX’s newly developed unique user conversion platform combined with the interest in the Flashbet patented accumulator bet product indicates 2 clear tiers of potential revenue from both B2B and B2C consumers which the Company hopes to achieve in the near term.

John May

Chairman

Statement of Comprehensive Income

for the quarters ended  

31 December 2023 and 30 September 2023

Statement of Financial Position

As at quarters ended

31 December 2023 and 30 September 2023

Statement of Changes in Equity 

For the quarters ended

31 December 2023 and 30 September 2023

Statement of Cash Flows

For the quarter ended 31 December 2023

and 30  September 2023

Notes to the financial statements

1. General information

ChallengerX plc is a public limited company limited by shares and was incorporated in England on 7 June 2021 with company number 13440398. Its registered office is 16 Great Queen Street, London, WC2B 5DG.

The Company’s shares are traded on the Aquis Stock Exchange Growth Market under symbol CXS and ISIN number GB00BMD0WG01.

The Company was first incorporated on 7 June 2021.

The information for periods ended 31 December 2023 and 30 September 2023 are unaudited.

2. Basis of Preparation

The quarterly management accounts of ChallengerX plc have been prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, “The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland” (“FRS 102”) and the Companies Act 2006.

These management accounts are prepared on a going concern basis, under the historical cost convention, as modified by the recognition of listed investments at fair value.

The financial statements are presented in Pounds Sterling, which is the Company’s presentation and functional  currency.

The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgment and complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 3 to the financial statements.

The financial statements have been prepared on the historical cost basis and are presented in £’000 unless otherwise stated.

The prior quarter comparatives for the quarter ended 30 September 2023 have been restated to reflect audit adjustments made in the annual report and financial statements for the year ended 30 June 2023 which was finalised on 20 December 2023. The adjustments better and more accurately represent the true financial position of the Company.

3. Going Concern

As at 31 December 2023, the Company had cash of £2,508. The Company has limited operating cash flow and is dependent on the performance of its trading and its cash balances for its working capital requirements. As at the date of this report, the Company had approximately £8,750 cash at bank.

 In making their assessment of going concern, the Directors, having made due and careful enquiry, are of the opinion that the Company will have access to adequate working capital to meet its obligations for the period of at least 12 months from the date these management accounts are authorized for issue. The Directors, have discussed the Company's position with its investors and professional advisors. With its recent investment in Flash Corp, the Company, together with Flash Corp’s support, believes it will secure the funding required to pursue its objectives.

The Directors believe strongly in the Group's potential. However, the success of securing funding has been identified as a material uncertainty which may cast significant doubt over the going concern assessment. Whilst acknowledging this uncertainty, based upon the expectation of completing a successful fundraising in the near future, and the continued support of its investors, the Directors consider it appropriate to continue to prepare the financial statements on a going concern basis.

4. Earnings per share