Dev Clever (AIM:DEV) said it has made “significant strategic progress” in its 1H20 results for the sixth month period ended 30 April 2020 as the group sees increasing demand for its remote and immersive technology solutions.
The group reported a revenue increase of 44.6% from the prior half year at £0.38m (1H19 2019: £0.26m) with increased uptake in Agency Services for its Engage customer loyalty platform.
EBITDA loss was £0.56m (1H19: loss £0.54m) with the primary cost driver for the group being salary and associated people costs, which is currently around £0.15m per month.
As at 30 April 2019, Dev Clever had a net cash position of £0.473m with a subscription agreement in place with Intrinsic Capital to raise up to £10m over a 14-month time frame.
Shares in Dev Clever have traded strongly over the past three months from lows of 5.45p to open at 9.45p following publication of the 1H19 results.
The group detailed that 2.5m shares of the first tranche of 20m subscription shares will be completed on or before 31 July 2020, raising £0.25m before related costs.
In addition, 17.5m shares will be subscribed for subject to the publication by DEV of a prospectus by the original back stop date of 31st August, raising £1.75m before related costs.
DEV said it had made progress across its Educate and Agency Services divisions, including the signing of a three-year exclusive worldwide partnership contract with Lenovo in April and a partnership with Veative Labs, a leading online provider to the education sector.
The Group's products, Launchyourcareer.com and VICTAR VR, are pre-installed on Lenovo VR Classroom devices and sold as a complete solution to educational institutions globally.
The group said this partnership has positioned it firmly within the growing EdTech market with both of its products now being localised for the US and, post-period end, in Canada.
“The recent partnership with Veative, increasing access to global markets, and the availability of working capital through Intrinsic will enable a faster global rollout and allow the Company to quickly launch in new markets such as India and China,” said CEO, Chris Jeffries.
DEV said it is now looking towards further global launches in partnership with Lenovo and expanding its product use towards the training and recruitment market for adults.
The group believes that the COVID-19 pandemic will generate significant demand for its remote and immersive solutions both in the educational and corporate sectors with its career platforms in place to support the needs of remote learning.
The Board believes that, as a result of the interest and initial uptake of its products in the US, that DEV is well placed to perform in line with management's expectations for the full year ending 31 October 2020.
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