Simon Strong's questions to Arqit Quantum (ARQQ) leadership • H1 2022
Question
Simon Strong from Cenkos asked for clarification on balance sheet movements, specifically the large increase in Property, Plant & Equipment (PPE), the working capital cycle given the rise in trade receivables, and the future trajectory of capitalized expenditure on intangible assets.
Answer
CFO Nick Pointon clarified that the PPE increase was a non-cash accounting item for a 'right of use asset' related to their London office, not contract rollouts. He explained that the rise in trade receivables was due to both contract revenue and cash receipts from warrant exercises. Founder, Chairman and CEO David Williams added that while not providing guidance, the capitalized expenditure on intangibles reflects ongoing investment in their satellite technology and is expected to continue.