TIDMEQLS
RNS Number : 5125Y
Equals Group PLC
07 September 2022
7 September 2022
Equals Group plc
('Equals' or the 'Group')
Interim Results
'Significant revenue growth, record Adjusted EBITDA, return to
statutory profit and strong balance sheet'
Equals (AIM: EQLS) , the fintech payments group focused on the
SME marketplace, announces its interim results for the six months
ended 30 June 2022 (the 'period' or 'H1-2022') and an update on
trading for the period from 1 July 2022 to 5 September 2022
('Q3-2022').
H1-2022: Financial Summary
H1-2022 H1-2021 Change
GBP millions GBP millions % (***)
Underlying transaction values 4,169 2,434 +71%
Revenue 31.4 16.9 +86%
Gross profit 14.9 10.3 +44%
Contribution 14.1 9.9 +42%
Adjusted EBITDA* 4.9 1.6 +203%
Operating Profit /(Loss) 1.1 (2.2)
Profit / (loss) after Taxation
and R&D credits 0.8 (1.2)
EPS (Basic, in pence) 0.38 (0.70)
Operational** cash in/(out) flows 4.7 0.8
Cash at bank 16.5 10.1 +63%
Notes
* Adjusted EBITDA is defined as operating profit before:
depreciation, amortisation, impairment charges and share option
charges and items of an exceptional nature. EBITDA is defined as
operating profit before depreciation and amortisation.
** Operational cashflows are before earn-outs and R&D
credits.
***Percentages are calculated based on underlying rather than
rounded figures.
H1-2022: Financial Highlights
-- Record revenue performance with an 86% increase to GBP31.4
million (H1-2021: GBP16.9 million) with GBP6.3 million derived
from the Solutions platform (H1-2021: GBP0.3 million)
-- 44% increase in Gross profit to GBP14.9 million (H1-2021:
GBP10.3 million)
-- 203% increase in Adjusted EBITDA* to GBP4.9 million (H1-2021:
GBP1.6 million) with GBP1.8 million contribution from Q1-2022
and GBP3.1 million in Q2-2022 (Q1-2021: GBP1.4 million; Q2-2021:
GBP0.2 million)
-- Statutory profit achieved with statutory PBT at GBP0.9 million
(H1-2021: loss of GBP2.2 million)
-- Basic EPS at 0.38 pence against a loss per share of 0.70 pence
in H1-2021
-- Cash per share increased 62.5% to 9.1 pence (30 June 2021:
5.6 pence)
H1-2022: Operational and Product Highlights
-- Continued focus on sales and marketing to corporate (B2B/SME) customers driving growth
-- Hiring of highly experienced Chief Commercial Officer ('CCO')
plus expansion of revenue generating headcount in sales and
marketing teams
-- Direct integration into SEPA enabling rapid transactional capability in Euros
-- Equals Money cards live on new platform supporting physical
and virtual cards with 21-currency capabilities
-- More investment into compliance via automation and hiring experienced staff
-- Progressed people agenda with 360 appraisals and staff
retention measures in difficult labour market
Q3-2022 Trading (1 July 2022 to 5 September 2022) and
Outlook
-- Strong performance continued with revenues of GBP13.3 million
in the period, an increase of 55% over the same period in
2021
-- Year-to-date revenue of GBP44.7 million, which already exceeds
full-year performance in 2021
-- Revenues per day of GBP289k, compared to GBP187k in the same
period in 2021
-- Continued growth in Solutions revenues at GBP3.1 million compared
to GBP1.1 million in same period in 2021
-- Positive distributable reserves allowing the Board to consider
a future dividend policy
-- Cash generation allowed the CBILS loan of GBP1.8 million to
be repaid in full in August 2022
-- Strong cash position permits further working capital to drive
the card business, platform investments, and strategic acquisitions
Commenting on the Interim Results, Ian Strafford-Taylor, CEO of
Equals Group plc, said:
"This is an outstanding set of results with record revenue and
EBITDA cementing our extremely successful transition into cash
generation and, ultimately, a return to the first statutory profit
since 2018.
"It also reflects the three-year investment cycle into platform,
connectivity and compliance which, alongside our operational pivot
towards corporate customers, has enabled the business to go from
strength to strength. Our performance has of course been delivered
by the hard work and dedication of every Equals team member who I
am immensely proud of and, on behalf of the Board, would like to
thank for their continued support and exceptional work ethic.
"Trading in Q3-2022 has continued to be robust, despite global
economic uncertainty and inflationary pressures, with strong growth
over the same period last year. We continue to see an increase in
fee-based revenues to complement our transactional and FX revenues,
which is part of our overall strategy for diversifying and
de-risking our earnings streams. Based on these strong results and
our current trading performance, we look to the future with
increased confidence and remain in line with expectations for the
full year."
Analyst meeting
A conference call for analysts hosted by Ian Strafford-Taylor
(CEO) and Richard Cooper (CFO) will be held today at 9.30am. A copy
of the Interim Results presentation is available at the Group's
website: http://www.equalsplc.com .
For retail investors, a n audio webcast of the conference call
with analysts will be available after 12pm today at:
https://webcasting.buchanan.uk.com/broadcast/62c3e636fb4bba516c453314.
In addition, as previously announced, the Company will also be
presenting the Interim Results via the Investor Meet Company
platform at 6pm today. Please register at
https://www.investormeetcompany.com/equals-group-plc/register-investor.
- Ends -
For more information, please contact:
Equals Group plc
Ian Strafford-Taylor, CEO Tel: +44 (0) 20 7778
Richard Cooper, CFO 9308
www.equalsplc.com
Canaccord Genuity (Nominated Adviser
& Broker)
Max Hartley / Georgina McCooke Tel: +44 (0) 20 7523
8150
Buchanan (Financial Communications)
Henry Harrison-Topham / Steph Whitmore Tel: +44 (0) 20 7466
/ Toto Berger 5000
equals@buchanan.uk.com www.buchanan.uk.com
Chief Executive Officer's Report
SUMMARY
The Group has delivered record-breaking revenue and Adjusted
EBITDA performance in H1-2022, leading to a first reported
statutory profit and positive EPS. The quantum of underlying
transactions through the Group's platforms increased by 71%. In
addition, the value of 'deposits', meaning loads on cards and
deposits through the banking platform, rose by 55%.
GBP millions
Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Q2-2022
Transaction
value* 1,091 1,343 1,878 2,135 1,980 2,189
Deposit/Load
value 292 430 495 509 515 607
*Q4-2021shown here excludes the GBP114 million from the one-off
material trade announced on 28 October 2021.
Revenues rose by 86% in H1-2022 to GBP31.4 million (H1-2021:
GBP16.9 million). This growth was broad-based with all product
lines performing well. The Group continues to focus on corporate
(B2B/SME) customers and saw very strong revenue growth in this
sector in H1-2022.
Revenues from travel products, despite recovering strongly from
the impact of Covid-19, represented a modest 10.4% of overall
revenues in Q2-2022 and 8.9% for the whole of H1-2022.
Revenue from Solutions, the Group's platform that targets larger
corporates, led the way with strong growth and a healthy pipeline
of new customers. Additionally, the Group's corporate expenses
product, Equals Spend, reported strong growth along with Equals
Connect, the Group's white-label business. Further detail on the
revenue mix is included in the CFO's Report.
Revenue* by quarter, in GBP millions
Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Q2-2022
Solutions - 0.3 1.5 1.8 2.8 3.5
White-Label 0.8 1.6 2.2 3.2 3.3 3.8
Other 6.1 6.4 7.2 7.8 7.1 8.1
-------- -------- -------- -------- -------- --------
Total Non-Travel 6.9 8.3 10.9 12.8 13.2 15.4
Travel 1.2 0.6 0.9 0.9 1.0 1.8
-------- -------- -------- -------- -------- --------
8.1 8.8 11.9 13.8 14.2 17.2
Material Trade - - - 1.5 - -
-------- -------- -------- -------- -------- --------
Total 8.1 8.8 11.9 15.3 14.2 17.2
-------- -------- -------- -------- -------- --------
Adjusted EBITDA (before share option charges) in H1-2022
increased to GBP4.9 million from GBP1.8 million, with GBP3.1
million being earned in Q2-2022.
The confidence in Equals' performance and ability to generate
cash led the Group to repay, in full, the outstanding balance
(totalling GBP1.8 million) of the CBILS loan in August 2022. With
interest rates continuing to rise, this action is immediately
accretive for EPS.
OPERATING REVIEW
Focus on growth
Given the product innovations Equals has achieved, the Group's
priority is to now overlay its platform developments with an
enhanced Sales and Marketing approach to drive further growth. The
essential building blocks to achieve this are:
-- a single CRM system across the Group, so all customer interaction
is captured in one place;
-- up-skilling the sales and marketing teams through training
and selected hiring; and,
-- a data science and AI team focusing on sales and customer data
to further assist the sales and marketing teams.
Equals' CRM solution, HubSpot, was initiated in 2021 and in
H1-2022 it has seen further refinement of how it is used. Further
work on extracting maximum value from HubSpot will continue
throughout 2022 and beyond utilising dedicated internal 'power
users' and providing training and facilitation.
The Group's data science team is now fully staffed and has been
concentrating on putting in place the data warehouse infrastructure
needed to provide both repetitive and bespoke data reporting. The
benefits of this are now flowing through with strong measurement of
key KPIs and more insights into customer acquisition and
retention.
In keeping with the overall strategy of the Group, the focus for
growth is on the B2B customer base. B2B customer acquisition is
heavily reliant on the outbound sales function augmented by and
integrated with a coherent digital marketing strategy and content
production. This contrasts with B2C customer acquisition, where
above-the-line ('ATL') marketing such as TV and billboard
advertisements augmented by digital marketing is the driving force.
Hence our growth strategy is directed towards improving our sales
capabilities with support from advanced data science and targeted
marketing.
One sales challenge for Equals is managing the transition from
being a product-led business to a platform-led business.
Previously, the Group has sold its products: International
Payments, Cards and Current Accounts, using largely separate sales
teams and marketing strategies. As Equals moves forward, it will be
selling:
-- Equals Money to the SME customer base, and
-- Equals Solutions to the larger B2B customers.
The transition from product to platform differentiates Equals
from traditional FX businesses, as the Group can compete not just
on FX rates, but also on platform capabilities and service.
Equals strengthened its sales and marketing leadership by the
appointment, announced on 17 May 2022, of Tom Kiddle as Chief
Commercial Officer. Tom, who started at the end of H1-2022, has a
strong background in the B2B payments industry having previously
held key positions at Travelex, Western Union and most recently at
World First. Since Tom's arrival, and utilising Equals' enhanced
data capabilities, the Group has already refined many aspects of
its go-to-market strategy and has more changes planned for the
balance of 2022 whilst planning its targets and strategy for
2023.
Focus on product development
Unified platform
H1-2022 focused on the further development of the Equals Money
platform for B2B customers.
The platform incorporates the payments and cards products of the
Group underpinned by an 'own-name multi-currency IBAN' allowing a
business to run one account supporting multiple currencies and
balances whilst being payment agnostic between bank transfer and
cards. This is the key strategic vision for the Group to simplify
money movement for business customers.
The Equals platform is built to be 'evergreen' in utilisation of
technology and has been assembled with scalability at its core,
placing the Group in a strong position for the future.
Payment infrastructure, 'Boxes' operating system
The Equals platform can provide each B2B customer with an 'own
name multi-currency IBAN', an account in their own name denoted by
a unique IBAN ('International Bank Account Number') which supports
multiple currencies.
This is a key differentiator from Banks who provide one account
per currency, each with a unique IBAN. As the account is in the
name of the customer, a so-called 'first party' account, this
allows more use-cases than payments into a 'pooled account' from a
compliance perspective. Furthermore, having one IBAN for all
currencies enables a customer to provide one single account
identifier to all its customers and suppliers, thereby simplifying
both sales and procurement processes.
Providing own-name multi-currency accounts required a
combination of third-party integrations to partner Banks and SWIFT
overlaid with smart technology. The in-house operating system used
by Equals to support the platform is referred to as 'Boxes'. This
proprietary technology allows Equals to offer a highly flexible
platform supporting multiple accounts and sub-accounts bespoke to
the customer.
The Boxes infrastructure was developed further in H1-2022 to
provide key functionality including:
-- real-time running balances;
-- statements; and,
-- enhanced reporting for customers.
In addition, Equals directly integrated into the SEPA (Single
European Payments Area) network, providing instant movement of
Euros in and out of the Equals payment infrastructure. Further
enhancements will be rolled out in H2-2022 including enhanced bulk
payments capabilities and the capability to offer IBAN and Boxes
functionality via API, thereby allowing more sophisticated
customers to directly integrate with the Equals platform and
support white-label opportunities.
Card Products
B2B customers increasingly need the flexibility to pay suppliers
via cards as well as traditional 'wire-transfer', particularly in
the e-commerce space where providers such as Google and Amazon will
only accept payments via a card. The Equals Money platform was
conceived recognising this need and therefore excellence in card
issuance, processing and technology is core to the platform.
Development of the Group's card infrastructure has continued in
H1-2022 to replace legacy platforms with a single platform built to
power the Equals card products for the medium term.
This platform provides the base from which a strong pipeline of
customer-facing features will deployed in H2-2022 including the
launch of the new Equals Money card which is multi-currency, can be
both virtual and physical, can be prepaid or debit, are live in
Apple Pay and have many more features and capabilities.
Focus on Compliance
The Group has a strong compliance culture and views its
capabilities as a strategic asset and competitive advantage.
Efficient compliance is essential to optimisation of revenues as
any delays to new business onboarding can lead to increased
customer frustration and possibly abandonment. Ensuring the process
of becoming a customer is as efficient as possible whilst
maintaining high standards of compliance requires the levels of
investment made in H1-2022. This investment is targeted at both
automation where possible, of the compliance processes combined
with adding skilled headcount to process the non-standard and
exceptional items.
Compliance requires strong control at the onboarding stage
augmented by ongoing monitoring and hence the Group's systems
investment is targeted at onboarding processes and transaction
monitoring.
Equals hired a Head of Compliance in mid-2021, and since then,
the Group has been consistently upgrading its staff and increasing
the headcount as the business expands. Equals has recruited a new,
highly experienced MLRO ('Money Laundering Reporting Officer')
joining the business in H2-2022, which will further bolster its
relationships with the Group's regulators and banks. These hires
supplemented an already an exceptionally skilled and commercially
focused team.
Focus on Employees
The labour market in the UK continues to be challenging both for
hiring talent and for staff retention. The Group introduced various
measures in 2021 to tackle these issues including share ownership
and LTIP schemes and plans to repeat this process in 2022. In
addition, the Group paid a mid-year cost of living award and other
bonuses to staff in July 2022 totalling GBP0.3 million, which is
fully accrued in the Group's interim financial statements.
Whilst the Group is growing rapidly, it retains a strong
cost-control culture, and it balances efficiency gains it yields
from its engineering investments with the priority to achieve
strong growth. The Group therefore expects overall staff numbers to
continue to rise slowly with most increases coming in direct
revenue generation roles or compliance. Given the strong
operational gearing of Equals, any increase in headcount and
overall cost-base is expected to be at a much lower rate than
growth in transactions and revenues.
Focus on ESG
Equals wholeheartedly embraces ESG initiatives and takes
Equality, Diversity, and Inclusivity ('EDI') extremely seriously.
The Group's EDI strategy, which covers not only employees but also
customers, includes an internal EDI network populated with elected
representatives and regular employee surveys. This is a key
objective for all Executive Committee members and forms part of
their appraisal.
FUTURE PLANS AND OPPORTUNITIES
The key strategic vision for the Group continues to be the
simplification of money movement for business customers. Equals
achieves this through its B2B platforms - Equals Money being
targeted at the SME base and Equals Solutions at larger corporate
opportunities. The Group's growth potential is extremely strong
given that the core building blocks of its platforms, namely
own-name multi-currency IBANs and bank-grade connectivity and
clearance, are highly complex and time consuming to replicate. This
'first mover' advantage will be enhanced further by the
developments planned in the Group's technical roadmap.
Equals will continue to look for external growth opportunities
and can do so with a strong balance sheet and cash position. The
Group is examining overseas expansion beyond its current
predominantly UK-centric customer base given the portability of its
platforms and will also take a considered strategic approach to
acquisitions.
Global Macro-Economic environment
The global economy faces serious challenges stemming from the
conflict in Ukraine and rising inflation and interest rates in
major economies. To date, Equals has performed resiliently despite
these conditions and continues to grow strongly as can be seen from
today's H1-2022 results and Q3-2022 trading update. However, the
Board continues to monitor the situation closely.
Q3-2022 trading and Outlook
Q3-2022 has continued the strong revenue generation seen in
H1-2022 with revenue for the period from 1 July 2022 to 5 September
2022 being GBP13.3 million, representing a 55% increase on the same
period in 2021.
Equals has a strong outlook resulting from the investments it
has made to create a payments platform. Further investments made in
compliance, onboarding and user experience means that the rich
functionality of the platform is made easily accessible to current
and potential customers. Finally, advances made in sales, marketing
and data mean that Equals now sells its products and platform more
efficiently. Accordingly, the Board looks forward to the future
with increased confidence and the Group remains in line with
expectations for the full year.
Ian Strafford-Taylor
Chief Executive Officer
7 September 2022
REVIEW OF THE CFO
Taking the financial information disclosed in the CEO's Report
one step further, I am pleased to present record Interim Results
for the six months ended 30 June 2022.
Totals may not sum due to rounding. Percentages are calculating
on underlying figures before rounding. Where costs cannot be
accurately attributed to each segment, they have been allocated on
the basis of revenue.
A: Income and Expenditure account and notes
Table 1 - Income and Expenditure account
GBP000's H1-2022 H1-2021 Change
Revenue 31,373 16,905 14,468
Gross profit 14,866 10,317 4,549
Marketing costs (790) (410) (380)
Contribution 14,076 9,907 4,169
-------- -------- -------
Net staff costs (6,620) (6,104) (516)
Net property & office costs (430) (490) 60
Net IT & telephone costs (925) (817) (108)
Professional fees (560) (594) 34
Compliance costs (358) (251) (107)
Travel and other expenses (331) (52) (279)
Operating costs (9,224) (8,308) (916)
-------- -------- -------
Adjusted EBITDA* 4,852 1,599 3,253
-------- -------- -------
Separately reported items - (616) 616
Share option charges (290) (217) (73)
EBITDA 4,562 766 3796
------ ------ -----
Memo: Adjusted EBITDA after
rent 4,497 1,034 3,463
------ ------ ------
Group revenues rose by 86%, Gross profits by 44%, Contribution
by 42%, whilst Operating costs increased by 11% leading to Adjusted
EBITDA increasing by 203% and EBITDA by 495%.
Ongoing growth is witnessed by comparing revenues in H1-2022 at
GBP31.4 million with GBP25.7 million in H2-2021 (excluding the
one-off revenue of GBP1.5 million earned from the material trade
reported in October 2021), thus a 22% half-on half increase.
To continue the theme of comparing the last two half years, I
present below a bridge from the Adjusted EBITDA in H2-2021 to
H1-2022, which shows a 13% increase on the like-for-like
position:
Table 2 - Adjusted EBITDA bridge from H2-2021 to H1-2022
H2-2021 Adjusted EBITDA 5,174
Gross profits from material
Less: trade (812)
Property rates rebate (80)
--------
Like-for-like H2-2021
Adjusted EBITDA 4,282
15% uplift in contribution
Add: H1-2022 1,868
15% increase in staff costs,
reflecting higher planned
headcount along with pay
Less: adjustments averaging 8% (885)
46% increase in professional
and compliance costs, much
of which is attributable
to onboarding more clients (290)
Increase in travel and
exhibition costs (80)
Increase in property utility
costs and rates (44)
--------
H1-2022 Adjusted EBITDA 4,852
--------
Uplift over like-for-like
H2-2021 570
--------
% uplift over like-for-like
H2-2021 13%
--------
Revenue
A split of revenues by both customer group and platform, clearly
shows both the strong and growing emergence of Solutions and very
significant migration away from the legacy travel products.
Table 3, H1-2022
Revenue in Consumer Corporates Large Sub-total White-label TOTAL
GBP millions and small enterprises H1-2022
business
---------------- ----------- ----------- ----------
International
payments 2.0 7.1 - 9.1 7.1 16.2
Cards 2.3 3.3 - 5.6 - 5.6
Banking 2.8 - - 2.8 - 2.8
Solutions - - 6.3 6.3 - 6.3
Travel cash 0.5 - - 0.5 - 0.5
---------------- ----------- ----------- ------------- ---------- ------------ ---------
Total, H1-2022 7.6 10.4 6.3 24.3 7.1 31.4
---------------- ----------- ----------- ------------- ---------- ------------ ---------
% Change*
H1-22 vs H1-21 +29% +24% >2010% +67% +202% +86%
*based on underlying figures
Table 3a - H1-2021
Consumer Corporates Large Sub-total White-label TOTAL
Revenue and small enterprises H1-2021
in GBP millions business
------------------- ----------- ----------- ----------
International
payments 1.3 6.1 - 7.4 2.4 9.8
Cards 1.7 2.2 - 3.9 - 3.9
Banking 2.8 - - 2.8 - 2.8
Solutions - - 0.3 0.3 - 0.3
Travel cash 0.1 - - 0.1 - 0.1
------------------- ----------- ----------- ------------- ---------- ------------ ---------
Total, H1-2021 5.9 8.3 0.3 14.5 2.4 16.9
------------------- ----------- ----------- ------------- ---------- ------------ ---------
Taking a further look at International Payments, Table 4 below,
shows the composition of transaction values and revenue across spot
and forward contracts.
Table 4. White Label Other
------------ ------
H1-2022 Spot Fwd Total Spot Fwd Total
Transaction values 648.9 98.3 747.2 976.9 281.8 1,258.7
% mix 87% 13% 100% 78% 22% 100%
Revenue 5.7 1.4 7.1 6.7 2.3 9.0
% mix 81% 19% 100% 75% 25% 100%
H1-2021
Transaction values 337.8 50.0 387.8 862.0 357.3 1219.3
% mix 87% 13% 100% 71% 29% 100%
Revenue 2.0 0.4 2.4 5.4 2.1 7.5
% mix 83% 17% 100% 72% 28% 100%
The move towards offering more forward contracts has evolved
over time and reflecting on 2019 as the last "pre-covid" year,
forward contracts only represented 10% of turnover.
Around 80% of the revenues were earned from three core currency
parings (GBP:EUR; GBP:USD; and EUR:USD).
Solutions Revenues have been analysed below between
transaction-based and fee-based. This shows the evolution of the
platform and its ability to secure long-term revenue streams.
Table 4a Fee based revenue Transaction based Total
In GBP millions revenue revenues
H1-2022 1.7 4.6 6.3
H2-2021 0.9 2.4 3.3
H1-2021 0.1 0.2 0.3
Variable costs and gross profits
The elements of variable costs are shown in the table below,
along with the gross profits and gross profit margins.
Table 5
Consumer Corporates Large enterprises Sub-total White-label TOTAL
and small H1-2022
In GBP millions business
------------------- ----------- ----------- ----------
Transaction
costs 1.3 2.7 - 4.0 0.1 4.1
Staff commissions 0.6 0.9 0.1 1.6 0.1 1.7
Affiliate costs 0.6 0.8 3.2 4.6 6.1 10.7
Total, H1-2022 2.5 4.4 3.3 10.2 6.3 16.5
Gross profit 5.2 5.9 2.9 14.0 0.8 14.9
Gross profit
% 67% 58% 47% 58% 12% 47%
------------------- ----------- ----------- ------------------ ---------- ------------ ---------
Table 5a
Consumer Corporates Large enterprises Sub-total White-label TOTAL
and small H1-2021
In GBP millions business
------------------- ----------- ----------- ----------
Transaction
costs 0.6 1.7 - 2.3 0.1 2.4
Staff commissions 0.5 0.6 - 1.1 0.1 1.2
Affiliate costs 0.4 0.6 0.2 1.2 1.8 3.0
Total, H1-2021 1.5 2.9 0.2 4.6 2.0 6.6
Gross profit 4.5 5.3 0.1 9.9 0.4 10.3
Gross profit
% 75% 64% 37% 68% 18% 61%
------------------- ----------- ----------- ------------------ ---------- ------------ ---------
H1-2022 witnessed Solutions and White-label contributing 43% of
revenues (H1-2021: 16%) and 25% of Gross profits (H1-2021: 5%).
Marketing, branding and contribution
The Group has accelerated its marketing plans after pausing this
during FY20 and FY21 when Covid posed greater uncertainties. Cash
costs include ad campaigns, pay-per-click and exhibition and
similar events including those in the USA where the Group noticed
considerable interest in particularly the Spend platform and the
Group's ability to sell this through its partnership with
Metropolitan Commercial Bank.
Table 6 H1-2022 H1-2021
Marketing expenses (GBP
millions) 0.8 0.4
-------- --------
Contribution 14.1 9.9
Contribution margin 45% 59%
-------- --------
Staff costs
Staff costs, gross of capitalisation, were GBP8.8 million in
H1-2022 against GBP7.3 million in H1-2021, and GBP7.7 million in
H2-2021. These costs were offset by:
- Capitalised software: GBP2.0 million in total (H1-2021: GBP1.2
million, H2-2021: GBP1.8 million), with GBP0.6 million on
contractors.
Amounts capitalised represent 19% of gross staff costs,
consistent with FY21. The Group investment strategy continues to
accelerate and focus on new and enhanced product design as has been
commented on in the CEO's Report.
Headcount numbers have moved from 258 as at 30 June 2021 to 266
as at 30 June 2022, below the rate of increase in revenue for the
period, and at 31 August 2022 they stood at 274.
The average number of engineering contractors per month in
H1-2022 was 14 (H1-2021: 7). As previously reported, Equals is
accelerating product development as fast as resource access allows
the Group to do in a tight labour market.
Professional fees and Compliance costs
Owing to an increasing cross-industry compliance burden, the
Group has chosen to report compliance and similar costs separately
from other professional fees. Compliance costs, including
onboarding systems, have risen due to a combination of greater
business activity and the Group's desire to fast-track business
applications but not at the expense of quality. Professional fees
have risen in line with trends widely reported in the national
press.
Property, insurance and office costs
Renegotiation of office leases has led to lower passing rents
which benefit the Group's cashflows but not the EBITDA as such
rents are accounted for under IFRS-16. Utilities, rates, and
insurance charges have however risen by an aggregate of 19% over
H2-2021, although there are 13% lower than in H1-2021.
Separately reported items
Separately Reported Items are large, non-recurring items
identified by management. There were no Separately Reported Items
in the period.
Amortisation and depreciation
Amortisation and depreciation for the period were GBP2.9 million
(H1-2021: GBP2.1 million) and GBP0.6 million (H1-2021: GBP0.7
million) respectively.
Operating result
The Group made a profit before taxation of GBP0.9 million for
the period, compared to a loss of GBP2.2 million for the period
H1-2021.
Taxation, incorporating R&D credits
The Group's taxation charge includes both corporation tax,
deferred tax, and R&D credits. The Group has recognised a net
tax charge of GBP37k (H1-2021: GBP1,075k net tax credit) of which
GBP40k (H1-2021: GBP319k) relates to an estimated R&D tax
credit repayment claim for the six months to 30 June 2022.
Result after taxation
The result after taxation was a profit of GBP848k against a loss
in H1-2021 of GBP1,172k and a full year loss in 2021 of
GBP2,262k.
Earnings per share
Both basic and diluted EPS went into the positive, with basic
EPS rising to 0.38pence (H1-2021: negative, 0.70pence) and diluted
EPS rising to 0.36pence (H1-2021: negative, 0.70pence).
B: Balance sheet
At 30 June 2022, the Group considers some of the key items on
the balance sheet to be:
-- GBP16.5 million of cash at bank (30 June 2021: GBP10.1 million)
-- GBP1.8 million CBILS loan (repaid in full in August 2022)
-- GBP0.3 million deferred consideration payable but settled after the period end.
Table 7 - Balance sheet
As at As at As at
30 Jun 2022 30 Jun 31 Dec
2021 2021
GBP'000s GBP'000s GBP'000s
IFRS 16 assets, less IFRS 16 liabilities (976) (364) (388)
Other non-current assets (other
than deferred tax) 31,618 35,519 32,217
------------- --------- ---------
30,642 35,155 31,829
------------- --------- ---------
Liquidity (per Table 9) 12,825 7,316 10,739
Trade debtors and accrued income 4,244 3,508 3,638
R&D rebates 438 1,687 398
Prepayments 1,411 1,076 998
Deposits and sundry debtors 190 396 329
Inventory of card stock 148 217 168
Accounts payable (2,315) (2,051) (1,549)
Affiliate commissions (2,905) (1,303) (1,945)
PAYE, staff commissions etc. (1,824) (1,808) (1,884)
Other accruals and other creditors (1,412) (1,151) (1,349)
------------- --------- ---------
10,800 7,887 9,543
------------- --------- ---------
Earn-out balances due (Table 16) (304) (1,835) (1,683)
Implied interest thereon 1 350 63
------------- --------- ---------
(303) (1,485) (1,620)
Net corporation and deferred tax 1,148 208 888
Net value of forward contracts 511 (31) 511
------------- --------- ---------
1,356 (1,308) (221)
------------- --------- ---------
NET SHAREHOLDER FUNDS 42,798 41,734 41,151
------------- --------- ---------
Retained earnings at 1 January (24,590) (22,259) (22,259)
Earnings for the year 675 (1,251) (2,424)
Amount attributable to the exercise
of share options - - 93
------------- --------- ---------
Retained earnings at 31 December (23,915) (23,510) (24,590)
------------- --------- ---------
Non-Controlling interest at 1 January 263 101 101
Earnings for year 173 79 162
------------- --------- ---------
Non-Controlling interest at 31
December 436 180 263
------------- --------- ---------
Share capital, share premium 55,212 54,836 55,011
Other reserves 11,065 10,228 10,467
------------- --------- ---------
66,277 65,064 65,478
--------- ---------
CAPITAL AND RESERVES 42,798 41,734 41,151
------------- --------- ---------
Non-controlling Interest
The profit for H1-2022 includes GBP173k profit in respect of the
Non-Controlling Interest of the Equals Connect business acquired in
2019 (H1-2021: GBP79k).
Off balance sheet items: client monies
As at 30 June 2022 the Group held client monies of GBP272.0
million in off balance sheet bank accounts (H1-2021: GBP170.4
million). The increase year-on-year arises from the acquisition of
new clients, and a further general increase consistent with the
uptake in B2B revenue in H1-2022.
Earn-outs
The table below shows the financial position relating to
acquisitions in and after FY19.
Table 8 - EARNOUTS
Hermex Casco Effective Total
Acquisition date 09.08.2019 19.11.2019 15.10.2020
GBP'000s GBP'000s GBP'000s GBP'000s
Acquisition price booked
at acquisition 2,000 2,236 1,575 5,811
Earn outs paid by 31.12.2020 (2,000) (1,733) (125) (3,858)
Revaluation of asset based
on performance - 793 - 793
----------- ----------- ----------- -----------
Gross outstanding at 31.12.2020 - 1,296 1,450 2,746
Paid during H1-2021 - (741) (62) (803)
Paid during H2-2021 - - (306) (306)
----------- ----------- ----------- ---------
Further change in consideration - 46 - 46
----------- ----------- ----------- -----------
Gross Outstanding at 31.12.2021 - 601 1,082 1,683
Paid during H1 - 2022 - (601) (779) (1,380)
----------- ----------- ----------- -----------
Gross Outstanding at 30.06.2022 - - 303 303
----------- ----------- ----------- -----------
Paid during Q3-2022 - - (303) (303)
Maximum consideration 2,000 3,725 1,575 7,300
Total consideration 2,000 3,075 1,575 6,650
----------- ----------- ----------- -----------
CASH FLOW
Table 9 - Cash flow
GBP000's H1-2022 H1-2021
Adjusted EBITDA after rent 4,497 1,034
- Cash incurred separately reported
items - (616)
- Internally capitalised staff
costs (2,051) (1,191)
Internally capitalised IT costs (164) (148)
- Purchase of other intangibles (307) (27)
- Purchase of property, plant,
equipment (122) (40)
Add: Working capital movement 2,875 1,795
"Operational" cashflows 4,728 807
Cash for acquisitions/ earn-outs (1,380) (803)
External funding
Repayment of CBILS loan (200) -
Cash raised from issue of equity 200 46
NET CASH FLOWS 3,348 50
Balance at start of period 13,104 10,032
Balance at end of period 16,452 10,082
=========== ===========
Number of shares in issue 180,712,473 180,045,807
Cash per share (in pence) 9.1 5.6
Table 10 - LIQUIDITY H1-2022 H1-2021 FY-2021
GBP000'S GBP000'S GBP000'S
Cash at bank 16,452 10,083 13,104
Balances with liquidity providers 1,499 2,553 1,675
Pre-funded balances with
card provider 884 1,435 1,615
--------- --------- ---------
Gross liquid resources 18,835 14,071 16,394
--------- --------- ---------
Customer balances not subject
to safeguarding (4,210) (4,755) (3,655)
CBILS loan (1,800) (2,000) (2,000)
--------- --------- ---------
(6,010) (6,755) (5,655)
--------- --------- ---------
Net position 12,825 7,316 10,739
--------- --------- ---------
Richard Cooper
Chief Financial Officer
7 September 2022
INTERIM CONSOLIDATED statement OF COMPREHENSIVE INCOME
FOR THE six month periodED 30 june 2022
Period Year end
end Period end 31
30 June 30 June December
2022 2021 2021
Unaudited Unaudited Audited
Note GBP000 GBP000 GBP000
Revenue on currency transactions 28,505 14,046 38,424
Banking revenue 2,868 2,859 5,667
----------- ----------- ----------
Revenue 2 31,373 16,905 44,091
Direct costs 2 (16,507) (6,589) (19,855)
----------- ----------- ----------
Gross profit 14,866 10,316 24,236
Administrative expenses 3 (10,314) (9,602) (18,715)
Depreciation (632) (733) (1,398)
Amortisation charge (2,858) (2,135) (5,812)
Impairment charge 4 - - (1,638)
Total operating expenses (13,804) (12,470) (27,563)
Operating profit / (loss) 1,062 (2,154) (3,327)
Finance costs 8 (177) (93) (490)
----------- ----------- ----------
Profit / loss before tax 885 (2,247) (3,817)
Tax (charge)/credit 5 (37) 1,075 1,555
----------- ----------- ----------
Profit / loss after tax 848 (1,172) (2,262)
=========== =========== ==========
Memo: Profit / loss is attributable
to:
----------- ----------- ----------
Owners of Equals Group Plc 675 (1,251) (2,424)
Non-controlling interest 173 79 162
----------- ----------- ----------
Other comprehensive income:
Exchange differences arising 1 - -
on translation of foreign
operations
849 (1,172) (2,262)
=========== =========== ==========
Profit / loss per share
Basic 0.38p (0.70)p (1.35)p
Diluted 0.36p (0.70)p (1.35)p
=========== =========== ==========
All income and expenses arise from continuing operations.
INTERIM CONSOLIDATED statement OF FINANCIAL POSITION
FOR THE six month periodED 30 june 2022
As at As at As at
30 June 30 June 31 December
2022 2021 2021
Unaudited Unaudited Audited
Note GBP000 GBP000 GBP000
ASSETS
Non-current assets
Property, plant and equipment 1,193 1,439 1,257
Right of use assets 4,067 5,247 4,874
Intangible assets and goodwill 30,425 34,082 30,960
Deferred tax assets 1,287 230 949
36,972 40,998 38,040
----------- ----------- -------------
Current assets
Inventories 148 217 168
Trade and other receivables 8,228 9,096 8,256
Current tax assets 439 1,687 397
Derivative financial assets 2,593 3,019 2,593
Cash and cash equivalents 16,452 10,082 13,104
----------- ----------- -------------
27,860 24,101 24,518
----------- ----------- -------------
TOTAL ASSETS 64,832 65,099 62,558
=========== =========== =============
EQUITY AND LIABILITIES
Equity attributable to
equity holders
Share capital 6 1,807 1,787 1,793
Share premium 6 53,405 53,049 53,218
Share based payment reserve 2,455 1,619 1,858
Other reserves 8,610 8,609 8,609
Retained deficit (23,915) (23,510) (24,590)
----------- ----------- -------------
Equity attributable to owners
of Equals Group Plc 42,362 41,554 40,888
Non-controlling interest 436 180 263
----------- ----------- -------------
42,798 41,734 41,151
----------- ----------- -------------
Non-current liabilities
Borrowings 7 1,600 1,800 1,600
Lease liabilities 4,224 5,164 4,484
Deferred tax liabilities - - -
----------- ----------- -------------
5,824 6,964 6,084
----------- ----------- -------------
Current liabilities
Borrowings 7 200 200 400
Trade and other payables 12,970 12,704 12,002
Current tax liabilities 139 - 61
Lease liabilities 819 447 778
Derivative financial liabilities 2,082 3,050 2,082
----------- ----------- -------------
16,210 16,401 15,323
----------- ----------- -------------
TOTAL EQUITY AND LIABILITIES 64,832 65,099 62,558
=========== =========== =============
INTERIM CONSOLIDATEd STATEMENT OF changes in equity
For the SIX MONTH period ended 30 june 2022
Group Total
attributable
Share to owners
Share Share based Retained Other of Equals Non-controlling
capital premium payment deficit reserves Group Plc interest Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 January 2021 1,786 53,003 1,402 (22,259) 8,609 42,541 101 42,642
(Loss) / income for
the period - - - (1,251) - (1,251) 79 (1,172)
Other comprehensive
income:
Items that will not
be reclassified
subsequently
to profit or loss:
Exchange differences - - - - - - - -
arising on translation
of foreign operations
Other items
Share based payment
charge - - 217 - - 217 - 217
Movement in deferred - - - - - - - -
tax on share-based
payment charge
New shares issued 1 46 - - - 47 - 47
At 30 June 2021 1,787 53,049 1,619 (23,510) 8,609 41,554 180 41,734
(Loss) / income for
the period - - - (1,173) - (1,173) 83 (1,090)
Other comprehensive
income:
Items that will not
be reclassified
subsequently
to profit or loss:
Exchange differences - - - - - - - -
arising on translation
of foreign operations
Other items
Share based payment
charge - - 54 - - 54 - 54
Movement in deferred
tax on share-based
payment charge - - 278 - - 278 - 278
Share options exercised
in year - - (93) 93 - - - -
New shares issued 6 169 - - - 175 - 175
-------- -------- -------- -------- --------- ------------- --------------- -------
At 31 December 2021 1,793 53,218 1,858 (24,590) 8,609 40,888 263 41,151
Income for the period
and total comprehensive
(loss) / income - - - 675 - 675 173 848
Other comprehensive
income:
Items that will not
be reclassified
subsequently
to profit or loss:
Exchange differences
arising on translation
of foreign operations - - - - 1 1 - 1
Other items
Share based payment
charge - - 259 - - 259 - 259
Movement in deferred
tax on share-based
payment charge - - 338 - - 338 - 338
New shares issued 14 187 - - - 201 - 201
-------- -------- -------- -------- --------- ------------- --------------- -------
At 30 June 2022 1,807 53,405 2,455 (23,915) 8,610 42,362 436 42,798
======== ======== ======== ======== ========= ============= =============== =======
Other reserves comprise:
Merger reserve Arising on reverse acquisition from Group
reorganisation.
Contingent consideration Arising on equity based contingent consideration
reserve on acquisition of subsidiaries.
Foreign currency reserve Arising on translation of foreign operations
INTERIM Consolidated statement of cash flows
FOR THE SIX MONTH PERIODED 30 JUNE 2022
Six month Six month Six month
period ended period ended period ended
30 June 30 June 31 December
2022 2021 2021
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
Operating Activities
Profit / loss for the period 885 (2,247) (1,570)
Adjustments for:
Depreciation 632 733 665
Amortisation 2,858 2,135 3,677
Impairment - - 1,638
Share based payment charge 259 217 55
(Increase) / decrease in trade
and other receivables (188) (351) 3,965
Decrease /in net derivative financial
assets / liabilities - - (4,898)
Increase / (decrease) in trade
and other payables 1,561 2,210 426
Increase / decrease in derivative
financial liabilities - - (968)
Decrease in inventories 20 (23) 49
Finance costs 177 93 397
-------------- -------------- --------------
Net cash inflow 6,204 2,767 3,436
Tax receipts - - 1,367
-------------- -------------- --------------
Net cash inflow from operating
activities 6,204 2,767 4,803
Cash flows from investing activities
Acquisition of property, plant
and equipment (122) (40) (38)
Acquisition of intangibles (2,323) (1,367) (2,193)
Deferred consideration on acquisition
of subsidiary - (803) 803
Acquisition of subsidiary, net - - -
of cash acquired
Net cash used in investing activities (2,445) (2,210) (1,428)
Cash flows from financing activities
Principal elements of lease payments (297) (446) (426)
Interest paid on finance lease (82) (97) (97)
Interest paid (33) (10) (4)
Repayment of borrowings (200) - -
Proceeds from issuance of ordinary
shares 201 46 174
Net cash used in financing activities (411) (507) (353)
Net increase in cash and cash
equivalents 3,348 50 3,022
Cash and cash equivalents at
the beginning of the period 13,104 10,032 10,082
-------------- -------------- --------------
Cash and cash equivalents at
end of the period 16,452 10,082 13,104
============== ============== ==============
CONSOLIDATED NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIODED 30 JUNE 2022
1. Basis of preparation
The principal accounting policies applied in the preparation of
the Group and Interim Consolidated financial statements are set out
below. These policies have been consistently applied to all the
years presented, unless otherwise stated. The financial statements
have been prepared on a historical cost basis with the exception of
derivative financial instruments which are measured at fair value
through profit or loss.
These financial statements are prepared in accordance with
UK-adopted International Accounting Standards in conformity with
the requirements of the Companies Act 2006. The financial
statements are presented in sterling, the Group's presentational
currency.
The unaudited consolidated Interim financial statements have
been prepared in accordance with the AIM rules and consistently
with the basis of preparation and accounting policies set out in
the accounts of the Group for the year ended 31 December 2021. The
information set out herein is abbreviated and does not constitute
statutory accounts within the meaning of Section 434 of the
Companies Act 2006. These interim consolidated financial statements
do not include all disclosures which would be required in a
complete set of financial statements and should be read in
conjunction with the 2021 Annual Report.
The Company is a limited liability company incorporated and
domiciled in England and Wales and whose shares are quoted on AIM,
a market operated by The London Stock Exchange.
a) Critical judgements and estimates
IFRS requires management to make estimates, judgements and
assumptions that affect the application of the Group's accounting
policies and the reported amounts of assets, liabilities, income
and expenses. These estimates are based on the Directors best
knowledge and past experience. The existing critical judgements and
estimates set out in note 3.26 of the Group's annual report for the
year ended 31 December 2021 have been reviewed in preparing these
Interim consolidated financial statements, and surrounding the
ongoing Covid-19 situation, and the Directors believe they remain
relevant.
b) Going concern
The Board continues to closely monitor its performance and
considers a range of risks that could affect the future performance
and position of the Group, including the on-going risks to the
business arising from the Covid-19 pandemic. The Board considers it
has a reasonable expectation that it has adequate resources to
continue to operate for the foreseeable future and therefore the
financial statements are prepared on a going concern basis.
2. Segmental Analysis
The segmental results were as follows:
Unaudited International Currency Travel Banking Central Total
Payments Cards Cash
6 months ended 30 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
June 2022
Segment revenue 22,382 5,645 478 2,868 - 31,373
Direct costs (13,526) (2,059) (239) (683) - (16,507)
-------------- --------- ------- -------- --------- ---------
Gross profit 8,856 3,586 239 2,185 - 14,866
Administrative expenses - - - - (10,314) (10,314)
Depreciation - - - - (632) (632)
Amortisation - - - - (2,858) (2,858)
Impairment charge - - - - - -
Finance costs - - - - (177) (177)
-------------- --------- ------- -------- --------- ---------
Profit / (loss) before
tax 8,856 3,586 239 2,185 (13,981) 885
============== ========= ======= ======== ========= =========
Current assets - - - 2,634 25,226 27,860
Non-current assets - - - 2,434 34,538 36,972
Total liabilities - - - (1,952) (20,082) (22,034)
-------------- --------- ------- -------- --------- ---------
Total net assets - - - 3,116 39,682 42,798
============== ========= ======= ======== ========= =========
Unaudited International Currency Travel Banking Central Total
Payments Cards Cash
6 months ended 30 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
June 2021
Segment revenue 10,124 3,853 69 2,859 - 16,905
Direct costs (5,837) (27) (21) (704) - (6,589)
-------------- --------- ------- -------- --------- ---------
Gross profit 4,287 3,826 48 2,155 - 10,316
Administrative expenses - - - - (9,602) (9,602)
Depreciation - - - - (733) (733)
Amortisation - - - - (2,135) (2,135)
Impairment charge - - - - - -
Finance costs - - - - (93) (93)
-------------- --------- ------- -------- --------- ---------
Profit / (loss) before
tax 4,287 3,826 48 2,155 (12,563) (2,247)
============== ========= ======= ======== ========= =========
Current assets - - - 2,294 21,807 24,101
Non-current assets - - - 2,682 38,316 40,998
Total liabilities - - - (1,996) (21,369) (23,365)
-------------- --------- ------- -------- --------- ---------
Total net assets - - - 2,980 38,754 41,734
============== ========= ======= ======== ========= =========
Audited International Currency Travel Banking Central Total
Payments Cards Cash
6 months ended 31 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
December 2021
Segment revenue 19,312 4,789 277 2,808 - 27,186
Direct costs (9,962) (2,589) (80) (635) - (13,266)
-------------- --------- -------- -------- --------- ---------
Gross profit 9,350 2,200 197 2,173 - 13,920
Administrative expenses - - - - (9,113) (9,113)
Depreciation - - - - (665) (665)
Amortisation - - - - (3,677) (3,677)
Impairment charge - - (1,638) - - (1,638)
Finance costs - - - - (397) (397)
-------------- --------- -------- -------- --------- ---------
Profit / (loss) before
tax 9,350 2,200 (1,441) 2,173 (13,852) (1,570)
============== ========= ======== ======== ========= =========
Current assets - - - - 24,518 24,518
Non-current assets 6,602 18,258 600 11,631 949 38,040
Total liabilities - - - (1,744) (19,663) (21,407)
-------------- --------- -------- -------- --------- ---------
Total net assets 6,602 18,258 600 9,887 5,804 41,151
============== ========= ======== ======== ========= =========
3. Operating profit / (loss)
Operating profit / (loss) is stated after charging the following
operating expenses:
6 months 6 months 12 months
ended 30 ended 30 ended 31
June 2022 June 2021 December
2021
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
Marketing costs 790 410 1,171
Staff costs 6,620 6,718 12,550
Property and office costs 430 490 822
Audit fees 180 188 303
Compliance costs 358 251 449
Other professional fees 380 408 876
IT and telephone cost 925 817 1,720
Travel and similar 329 50 300
Foreign exchange loss 10 52 119
Share option charge 291 217 356
Contingent consideration - - 46
Other costs 1 1 3
----------- ----------- ----------
Administrative costs 10,314 9,602 18,715
Depreciation of right of use assets 445 486 931
Depreciation of property, plant
and equipment 187 247 467
Amortisation charge 2,858 2,135 5,812
Impairment charge - - 1,638
Total operating expenses 13,804 12,470 27,563
=========== =========== ==========
4. Credit impairment charge
The Credit impairment charge of GBP1,638k in H2-2021 represented
the movement for the period in expected credit loss under IFRS 9
Financial Instruments.
5. Taxation
6 months 6 months 12 months ended
ended ended 30 June 31 December
30 June 2022 2021 2021
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
Current year R&D credit (40) (319) (398)
Change in R&D credit estimates - - -
relating to prior years
Current year corporation tax
charge 78 20 61
-------------- --------------- ----------------
Current tax charge /(credit) 38 (299) (337)
-------------- --------------- ----------------
Origination and reversal of
temporary differences (8) (762) (997)
Recognition of previously
unrecognised deductible temporary
differences 7 (14) (221)
-------------- --------------- ----------------
Deferred tax credit (1) (776) (1,218)
-------------- --------------- ----------------
Total tax charge / (credit) 37 (1,075) (1,555)
============== =============== ================
6. Earnings per share
Basic earnings per share is calculated based on the GBP675k
profit attributable to owners of Equals Group plc (H1-2021:
GBP1,251k loss) divided by the weighted average number of shares of
179,768,562 in the period (H1-2021: 178,629,499), giving a result
of 0.38 pence per share (H1-2021, loss, 0.70 pence per share).
7. Share capital
6 months 6 months 6 months 12 months
ended 30 ended 30 ended 30 ended 31 December
June 2022 June 2022 June 2021 2021
Unaudited Unaudited Unaudited Audited
No. GBP000 GBP000 GBP000
Authorised, issued and
fully paid-up ordinary
shares of GBP0.01 each
As at start of period 179,341,807 1,793 1,786 1,786
Issued during the period
under share options 666,666 7 1 7
Issued during the period
under the SIP 704,000 7 - -
As at end of period 180,712,473 1,807 1,787 1,793
----------- ---------- ---------- ------------------
On 18 May 2022, Equals Group Plc issued 666,666 1p ordinary
shares for total consideration of GBP193,333, of which GBP186,667
was allocated to the share premium reserve, in order to satisfy the
exercise of share options by a Director of the Group. Those shares
have been retained by the Director. As part of the longer-term
incentive plans for members of staff, on 11 March 2022, 704,000
shares were issued under a Share Incentive Plan and placed into
trust for 176 eligible employees. The shares will remain in trust
until the vesting conditions are met at the end of the holding
period on 18 October 2024.
8. Borrowings
2022 2021
GBP000 GBP000
Loan debenture 1,800 2,000
======= =======
Under the Coronavirus Business Interruption Loan Scheme (CBILS)
to further support working capital, on 23 December 2020, the main
trading subsidiary of the Company, FairFX plc, entered into a
GBP2.0 million loan agreement with the Royal Bank of Scotland
('RBS').
The loan was repaid in full on 8 August 2022 and the interest
due was GBP9,932.
9. Finance costs
Finance costs comprise the unwind of discount on the lease
liability under IFRS 16; the unwind of discount on deferred
consideration in respect of business and company acquisitions made
by the Group and other financing interest costs.
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