Page 74 - Beeks Financial Cloud Group Annual Report 2021

72 Beeks Financial Cloud Group PLC For the year ended 30 June 2021

Notes to the Consolidated Financial Statements

Notes to

Financial Statements

Beeks Financial Cloud Group plc VALUE-ADDED TAX (‘VAT’) Underlying EBITDA
after deducting all of its liabilities. AND OTHER SIMILAR TAXES Underlying EBITDA is defined as
Equity instruments issued by Beeks Revenues, expenses and assets earnings before amortisation,
Financial Cloud Group plc are are recognised net of the amount depreciation, finance costs,
recorded at the proceeds received of associated VAT, unless the VAT taxation, acquisition costs, share
net of direct issue costs. incurred is not recoverable from based payments and exceptional
the tax authority. In this case it is non-recurring costs.
The share capital account recognised as part of the cost of
represents the amount subscribed the acquisition of the asset or as Underlying EBITDA is a common
for shares at nominal value. part of the expense. measure used by investors
and analysts to evaluate the
EARNINGS PER SHARE Receivables and payables are operating financial performance
Basic earnings per share stated inclusive of the amount of of companies, particularly in the
Basic earnings per share is VAT receivable or payable. The net sector that The Group operates.
calculated by dividing the profit amount of VAT recoverable from,
attributable to the owners of or payable to, the tax authority is The accounting policies set out
Beeks Financial Cloud Group PLC, included in other receivables or above have, unless otherwise
FINANCE
excluding any costs of servicing other payables in the statement stated, been applied consistently by
equity other than ordinary shares, of financial position. The Group to all periods presented
by the weighted average number of
ordinary shares outstanding during Cash flows are presented on a gross The Group considers adjusted
the financial year, adjusted for bonus basis. The VAT components of cash EBITDA to be a useful measure of
elements in ordinary shares issued flows arising from investing or financing operating performance because
during the financial year. activities which are recoverable from, it approximates the underlying
or payable to the tax authority, are operating cash flow by eliminating
Diluted earnings per share presented as operating cash flows. the charges mentioned above. It
Diluted earnings per share is not a direct measure of liquidity,
adjusts the figures used in the Commitments and contingencies which is shown in the consolidated
determination of basic earnings are disclosed net of the amount of statement of cash flows, and needs
per share to take into account VAT recoverable from, or payable to be considered in the context of
the after income tax effect of to, the tax authority. The Group’s financial commitments.
interest and other financing costs
associated with dilutive potential ALTERNATIVE PERFORMANCE Underlying profit before tax
ordinary shares and the weighted MEASURES Underlying profit before tax
average number of shares In addition to measuring financial is defined as profit before tax
assumed to have been issued performance of The Group based adjusted for the following:
for no consideration in relation to on statutory profit measures, The / amortisation charges on
dilutive potential ordinary shares. Group also measures performance acquired intangible assets;
based on adjusted EBITDA, adjusted / share-based payment charges;
profit before tax and adjusted / M&A activity including:
diluted earnings per share. - Professional fees;