REG - Brandshield Systems - Half year results for 6 months ended 30 June 2022
29/09/2022 07:30
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RNS Number : 1353B Brandshield Systems PLC 29 September 2022
29 September 2022
BrandShield Systems plc
("BrandShield," the "Company," or the "Group")
Half year results for the six months ended 30 June 2022
Average Recurring Revenue, up 71% in H1 2022, continues to underpin
operational progress
BrandShield Systems plc (AIM: BRSD), a leading provider of cybersecurity
solutions for brand oriented digital risk protection, announces its results
for the six months ended 30 June 2022.
Financial highlights
· H1 2022 Annual Recurring Revenue(1) ("ARR") up 71% to $6.67m (H1
2021: $3.89m)
· Strong momentum continued with the August 2022 ARR figure reaching
$7.26m, up 68% vs. August 2021 and up 39% vs. December 2021
· Delivered revenue growth of 59.9% to $2.83m in H1 2022 (H1 2021:
$1.77m)
· Cash of $2.18m at period end (31 Dec 2021: $2.07m)
· Raised £2.5m (gross) in the period to further accelerate sales and
marketing activities, expansion of advertising, sales promotion and digital
marketing campaigns and ongoing B2B public relations and brand building
activities
(1)Annual Recurring Revenue is a non GAAP measure and an industry specific
measure
Operational highlights
· Strong new business momentum achieved in the first half of 2022,
increasing by 23 customers in the period to 153 customers, with growth
continued to 163 customers by the end of August 2022.
22% increase in Full Time Employees to 60 at end of June 2022 (December 2021:
49). Ongoing investment in the operational and sales and marketing functions,
to broaden the Company's sales footprint and drive additional ARR growth
· Secured a number of contracts in the period with clients from a broad
range of sectors, including new or extended contracts with companies operating
in the financial services, pharmaceutical, fashion, crypto, entertainment,
sports, and cosmetics sectors, including:
o One of the world's largest international consumer electronics businesses
o An online gaming client that focuses on the crypto gaming sub-sector
o A further leading global pharmaceutical company
· BrandShield 3.0 launched in January 2022 to help increase levels of
customer interaction and ultimately detect levels of online threats
Post period-end and Outlook
· Conversion rates from the new business pipeline continue to be very
high and, as the impact of our expanded sales team globally delivers results,
the size of the pipeline is growing strongly
· Announced formal partnership with The Sandbox, decentralised gaming
virtual world and a subsidiary of Animoca Brands, which was formed to ensure
the safety and security of crypto wallets and NFT assets bought and sold over
the marketplace
· Well placed to deliver ongoing sales growth in H2 2022, including Q4
which is traditionally the quarter which delivers the greatest growth for the
Company
· The Company remains confident of trading in line with expectations
for FY 2022 and in its growth prospects in the medium-term
Broking Arrangements
With effect from 1 October 2022 Shore Capital will be the Company's sole
broker (having previously been the Company's joint broker) following the end
of Tennyson Securities' engagement as joint broker.
Yoav Keren, Chief Executive Officer of BrandShield, commented:
"We are delighted to report that trading has remained strong, building on the
significant sales traction highlighted in our full year results published in
July. The tangible impact of our expanded sales team, particularly in the
United States, is now having a positive impact of our ability to deliver
improved levels of ARR, our key performance metric.
"We are exceptionally proud of our growing client list both in terms of
numbers and their leading position in their respective sectors. There is a
growing realisation amongst brands of all sizes of the threat posed to their
reputation and financial performance from illicit activity online and outside
of their influence. BrandShield continues to offer cutting edge protection
that they simply would not be able to achieve from within their own resources
or from inside-the-perimeter cybersecurity solutions."
Enquiries:
BrandShield Systems plc +44 (0)20 3143 8300
Yoav Keren, CEO
Spark Advisory Partners Limited (Nominated Adviser) +44 (0)20 3368 3554
Neil Baldwin / Andrew Emmott / James Keeshan
Shore Capital (Broker) +44 (0)20 7408 4090
Toby Gibbs / James Thomas (Corporate Advisory)
Henry Willcocks (Corporate Broking)
Vigo Consulting (Financial Public Relations) +44 (0)20 7390 0237
Jeremy Garcia / Antonia Pollock
brandshield@vigoconsulting.com
About BrandShield
BrandShield is a leading cybersecurity company founded in Israel by
cybersecurity experts that protect the world's largest brands and consumers
from phishing attacks, online fraud, and other online threats posed by
dangerous cybercriminals. Through its AI/ML platform, BrandShield identifies,
tracks, and eliminates online threats for global brands and organizations,
including Bristol Myers Squibb, Levi's, NewBalance, Swisscom, and the
Pharmaceutical Security Institute. BrandShield is quoted on the London Stock
Exchange AIM under ticker symbol BRSD. To learn more about BrandShield, please
visit the company website at www.BrandShield.com (http://www.BrandShield.com)
.
Chief Executive Officer's review
Introduction
The focus for the first half of 2022 remained on continuing the rapid
expansion of BrandShield's offering worldwide and in turn driving growth of
the Company's Annual Recurring Revenue ("ARR") to $6.67m representing 28%
growth relative to December 2021, and 71% growth versus the same period in the
prior year, the key KPI for the Group. This was underpinned by the conversion
of clients across a number of sectors and the ongoing investment in and
expansion of the Company's marketing and sales functions. This positive trend
has continued through August 2022, with ARR up 68% from August 2021, to
$7.26m. Traditionally Q4 is the quarter which delivers the greatest growth
for the Company.
Revenues for the six months ended 30 June 2022 increased 59.9% to $2.83m
compared to H1 2021 ($1.77m), with the Group reporting a loss for the period
of $4.11m (H1 2021: loss of $1.77m), which was in-line with management's
expectations. As at 30 June 2022, the Group had cash of $2.2 million (31 Dec
2021: $1.2m).
As at 30 June 2022, the loss includes Share Based Payments of $1.2m; the
Company recognised the expense in the income statement according to the fair
value of the share options and warrants determined using Black Scholes
valuation model.
The Company secured several additional contracts in the period with clients
from a broad range of sectors. These have included new or extended contracts
with companies operating in the financial services, pharmaceutical, fashion,
crypto, entertainment, sports, cosmetics and other sectors.
Market dynamics
It has been widely reported that the Covid-19 pandemic has accelerated
digitisation with the growth in e-commerce being a clear example of this.
Alongside this growth, there has been a significant increase in associated
fraudulent activity as cyber criminals seek to exploit individuals through
phishing scams, impersonation and counterfeiting.
Therefore, the opportunity for BrandShield is significant, and growth in our
key target markets is showing no signs of abating and is apparent across
myriad sectors - as demonstrated by the diverse nature of our new business
wins in H1 2021 - including pharmaceutical companies engaged in the
development of vaccines.
Our unique proposition
We believe that our technology is well-placed to lead this transition to a
more digitised economy as enterprises increase their online protection and
move from focusing on internal cyber security to requiring solutions for
external threats, providing comprehensive digital risk protection solutions.
BrandShield's market leading solutions are underpinned by:
· A mature product, creating higher barriers to entry
· Ongoing investment in R&D to ensure market leadership is
maintained
· AI/ML powered technology
· Strong threat network detection capabilities
· Unique image recognition and Optical Character Recognition (OCR) -
focusing on detection of emerging threats on social media and ecommerce
marketplaces
· Big data investigation tools with multi-brand and platform
capabilities
· Strong takedown capabilities across all digital threats
In addition, BrandShield adopts a multi-layered approach to the detection and
mitigation of online threats, which includes: Data, Analysis, Prioritisation,
Interface and Action.
Strategy
The Company remains in a strong growth phase in which the focus continues to
be on client conversion and driving Annual Recurring Revenue. The growth to
153 clients at the end of H1 is strong evidence of both the Company's ability
to convert new clients and to retain and indeed secure upsells to existing
clients who have remained with BrandShield for several years.
In February, the Company announced a contract with one of the world's largest
international consumer electronics businesses. This was followed by announcing
a win with an online gaming client that focuses on the crypto gaming
sub-sector. This is an increasingly strong sector of growth given its
propensity to be targeted by fraudulent attacks. A further leading global
pharmaceutical company agreed a contract in April and the Company announced
its formal partnership with The Sandbox in July, post-period end. The Sandbox
is a leading, decentralised gaming virtual world and a subsidiary of Animoca
Brands, which was formed to ensure the safety and security of crypto wallets
and NFT assets bought and sold over the marketplace.
Securing new clients remains the result of a mixture of inbound enquiries,
referrals from existing clients and our expanding outbound sales and marketing
teams around the globe. The Company is actively expanding our USA based sales
team and will be in a position to announce new and leading hires in this area
in the near future.
In the period a total of £2.5m funds were raised prior to associated costs.
This has allowed the Company to continue to focus on driving new client
acquisition. In the period the following initiatives have been undertaken:
· Continue to invest in and grow the sales and marketing teams
· Specific expansion of the sales teams in the US and UK
· Establishing a broader marketing footprint
· Expansion of advertising, sales promotion and digital marketing
campaigns
· Ongoing B2B public relations and brand building activities
BrandShield 3.0 was launched in early 2022. It was developed in accordance
with the latest market requirements and to meet the most recent digital risk
protection and brand protection challenges. The Software-as-a-Service ("SaaS")
technology includes a completely new and robust infrastructure and its
innovative user interface is both intuitive and enables more ways to detect
threat networks and carry out immediate takedowns whilst covering more threats
in less time.
BrandShield 3.0 provides both new and existing customers with the following
benefits:
· Ease of use: complete responsiveness and customisation, unification
of system processes and pages, and intuitive step by step detections and
takedowns
· Greater speed: new technologies have been implemented, significant
upgrades of databases and servers, improved coding and machine processes,
which have added to a much faster solution
· Superior automation: increased levels of automation for
detection, analysis and takedowns
Key hires
The US accounts for the majority of the Company's client base and new business
pipeline, and as such remains a key focus of our expanding sales footprint.
The Company is currently undertaking a recruitment process in the US which
will further expand our pipeline of opportunity in this key region for
BrandShield.
Outlook
Growth in client numbers and associated ARR remains incredibly encouraging and
the Board is resolute in its strategy of reinforcing this as the market
opportunity continues to present itself. The Company looks forward to updating
the market in our full year results building on what is traditionally a very
strong final quarter of the year and the foundations laid in our recently
expanded sales and marketing efforts.
The Company remains confident in trading in line with management
expectations for the full year 2022 and in the growth prospects in the
medium-term.
Yoav Keren
Chief Executive Officer
29 September 2022
UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION ON BRANDSHIELD
SYSTEMS PLC FOR THE 6 MONTH PERIOD ENDED 30 JUNE 2022
CONSOLIDATED INCOME STATEMENT
For the periods ended 30 June
Unaudited Period ended 30 June 2022 Unaudited Period ended 30 June 2021
Note $ $
Revenue 2 2,828,073 1,770,298
Cost of sales (1,469,009) (831,575)
Gross profit 1,359,064 938,723
Research and Development expenses 3
(1,648,081) (751,843)
Sales and Marketing expenses 3 (1,810,787) (926,462)
Operating expenses 3 (2,044,349) (1,138,926)
(5,503,217) (2,817,231)
Loss from operations (4,144,153) (1,878,508)
Net finance income 30,376 112,169
Loss before tax (4,113,777) (1,766,339)
Tax expense - -
Loss for the period (4,113,777) (1,766,339)
Basic and diluted loss per share (cent) 4
(0.032) (0.015)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the periods ended 30 June
Unaudited Period ended 30 June 2022 Unaudited Period ended 30 June 2021
$ $
Loss for the period (4,113,777) (1,766,339)
Other comprehensive income:
Items that will or may be reclassified to profit or loss:
Other comprehensive(loss) / income (222,714) 84,612
Total comprehensive loss (4,336,491) (1,681,727)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June
Unaudited Period ended 30 June 2022 Audited Year ended December 31, 2021
Note $ $
Non-current assets
Property, plant and equipment 231,832 47,839
Financial assets at fair value through profit or loss 12 4,112,107
3,681,806
3,913,638 4,159,946
Current assets
Trade and other receivables 5 1,576,268 825,066
Financial assets at fair value through profit or loss 20,534
18,385
Other financial assets 136,346 16,218
Cash and cash equivalents 6 2,178,349 1,194,275
Restricted cash 370,401 191,770
Assets classified as held for sale 302,514 337,870
4,582,263 2,585,733
Total assets 8,495,901 6,745,679
Current liabilities
Short term loan and bank overdraft 7 2,003,493 1,626,357
Trade and other payables 8 4,043,629 2,807,924
6,047,122 4,434,281
Non-current liabilities
Other payables 25,914 32,230
25,914 32,230
Total liabilities 6,073,036 4,466,511
Net assets 2,422,865 2,279,168
Equity attributable to owners of the parent
Share capital 11 9,600,030 9,299,228
Share premium 11 30,663,129 27,686,289
Reverse acquisition reserve (20,653,597) (20,653,597)
Other reserves 5,320,606 4,340,773
Retained earnings (22,507,303) (18,393,526)
Total equity 2,422,865 2,279,168
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Unaudited
Share capital Reverse acquisition reserve Retained earnings Total
Share premium Other reserves
$ $ $ $ $
Balance as at 1 January 2021 9,246,267 27,353,294 (20,653,597) 3,101,442 (12,646,446) 6,400,960
Loss for the period ended 30 June 2021 - (1,766,339) (1,766,339)
- - -
Share based payments - - - 56,436 - 56,436
Issue of shares in relation to warrants and options exercise 52,968 608,630 385,963
332,995 - (608,630)
Exchange differences on translation - 451,060 84,612
- - (366,441)
Balance as at 30 June 2021 9,229,228 27,686,289 (20,653,597) 2,182,807 (13,353,095) 5,161,632
Share capital Reverse acquisition reserve Retained earnings Total
Share premium Other reserves
$ $ $ $ $ $
Balance as at 1 January 2022 9,299,228 27,686,289 (20,653,597) 4,340,774 (18,393,526) 2,279,168
Loss for the period ended 30 June 2022 - (4,113,777) (4,113,777)
- - -
Issue of share capital 300,803 2,976,840 - - - 3,277,642
Share based payments - - - 1,202,546 - 1,202,546
Exchange differences on translation - - (222,714)
- - (222,714)
Balance as at 30 June 2022 9,600,031 30,663,129 (20,653,597) 5,320,606 (22,507,303) 2,422,865
UNAUDITED CONSOLIDATED CASH FLOW STATEMENTS
For the periods ended 30 June
Unaudited Period ended 30 June 2022 Unaudited Period ended 30 June 2021
$ $
Cash flows from operating activities
Loss for the year (4,113,777) (1,766,339)
Adjustments for:
Depreciation 15,615 4,946
Share based payment expense 1,202,546 56,436
Foreign exchange on operations 245,090 -
Increase in trade and other receivables (751,202) (523,934)
Increase in other financial assets (120,128) -
Increase in restricted cash (178,631) -
Increase in trade and other payables 1,229,390 732,148
Net cash flows from operating activities (2,471,097) (1,496,743)
Investing activities
Purchase of property, plant and equipment (199,607) (37,103)
Net cash used in investing activities (199,607) (37,103)
Financing activities
Proceeds from loans and borrowings 377,136 -
Proceeds from exercised warrants - 387,610
Proceeds from issue of ordinary shares 3,277,642 -
Net cash used in financing activities 3,654,778 387,610
Net (decrease) / increase in cash and cash equivalents
984,074 (1,146,236)
Cash and cash equivalents at beginning of period 1,194,275 3,198,525
Foreign exchange differences on cash - 14,558
Cash and cash equivalents at end of period
2,178,349 2,066,847
Non-cash transactions
The Company operates an equity-settled, share-based scheme under which the
Company receives services from employees as consideration for equity
instruments (options) of the Company. The value of the employee services
received is expensed in the Income Statement and its value is determined by
reference to the fair value of the options granted, calculated using the Black
Scholes model. In the period to 30 June 2022 4,433,552 options were issued at
a fair value of 0.08 USD per option.
NOTES TO THE FINANCIAL INFORMATION
1. General information and basis of preparation
The principal activity of BrandShield Systems plc (the 'Company') is the
development of a brand protection and online threat hunting solution to
prevent, detect and remove online threats, through its research and
development centre in Israel.
Basis of preparation
The condensed consolidated interim financial statements ("Interim Financial
Statements") of the Group have been prepared in accordance with the AIM Rules
for Companies and UK adopted international accounting standards and the
Companies Act 2006. They have been prepared under the assumption that the
Group operates on a going concern basis. As permitted, the Group has chosen
not to fully adopt IAS 34 in preparing the Interim Financial Statements. The
Interim Financial Statements have been prepared under the historical cost
convention, as modified by the revaluation of financial assets at fair value
through profit or loss.
The Interim Financial Information has been prepared under the same basis of
preparation and accounting policies as adopted in the audited annual financial
statements for the period to 31 December 2021, which were authorised by the
Board on 30 June 2022. The Interim Financial Statements should be read in
conjunction with these annual financial statements.
The interim financial information is presented in US Dollars.
Going concern
The financial statements have been prepared on the assumption that the group
will continue as going concern. Under the going concern assumption, an entity
is ordinarily viewed as continuing in business for the foreseeable future with
neither the intention nor the necessity of liquidation, ceasing trading or
seeking protection from creditors pursuant to laws or regulations.
The wording included in the going concern policy and relevant disclosures
within the Annual Report for the year ended 31 December 2021 is still
applicable to the group as at 30 June 2022.
Critical accounting estimates
The preparation of Interim Financial Statements in conformity with IFRS
requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the Company's
accounting policies. The key assumptions used in preparation of the Interim
Financial Information are in conformity with the assumptions used in the
annual financial statements unless otherwise stated.
Accounting policies
The same accounting policies, presentation and methods of computation have
been followed in the Interim Financial Statements as were applied in the
Company's audited annual financial statements. No new standards were adopted
in the period. There are no new standards issued but not yet effective that
have been early adopted or are expected to have a material impact on the
Company.
2. Revenue
Revenue is generated from the sale of online monitoring services. In the
period ended 30 June 2022, 96% of sales were made overseas (The period ended
30 June 2021: 94.8%). The majority of overseas sales are made in the USA.
3. Research and Development expenses
Unaudited Period ended 30 June 2022 Unaudited Period ended 30 June 2021
$ $
Salaries (817,191) (617,893)
Share based payment (488,592) -
Other expenses (342,298) (133,950)
(1,648,081) (751,843)
Sales and marketing expenses
Unaudited Period ended 30 June 2022 Unaudited Period ended 30 June 2021
$ $
Salaries (658,121) (479,457)
Advertising and Marketing (950,831) (447,005)
Share based payment (201,835) -
(1,810,787) (926,462)
Operation expenses
Unaudited Period ended 30 June 2022 Unaudited Period ended 30 June 2021
$ $
Salaries (523,567) (342,319)
Share based payment (493,692) -
Rent and utilities (258,891) (138,150)
Office and miscellaneous (16,578) (135,108)
Other expenses (751,621) (523,349)
(2,044,349) (1,138,926)
4. Loss per share
Basic loss per share is calculated by dividing the profit attributable to
equity holders of the Company by the weighted average number of ordinary
shares in issue during the year.
Unaudited Period ended 30 June 2022 Unaudited Period ended 30 June 2021
$ $
Loss attributable to equity holders of the Company 4,113,777 1,766,339
Weighted average number of shares 129,171,159 116,043,727
Loss per share (cents) (0.032) (0.015)
Since the Company is loss making, the share options, warrants and convertible
loans currently in issue are non-dilutive.
5. Trade and other receivables
Unaudited Audited Year ended 31 December 2021
Period ended 30 June 2022
$ $
Trade receivables 1,557,957 647,551
Other receivables and prepaid expenses 18,385 177,515
1,576,268 825,066
6. Cash and cash equivalents
Unaudited Period ended 30 June 2022 Audited Year ended 31 December 2021
$ $
Cash and cash equivalents 2,178,349 1,194,275
2,178,349 1,194,275
7. Short term loan and bank overdraft
BrandShield Ltd has entered into an agreement with Leumi Bank to provide a
revolving credit line facility of up to 8 million NIS (c. $2.3 million) for 24
months. The credit line bears a competitive interest rate. The facility allows
drawdown of up to four times Monthly Revenue (net of churn) and includes
covenants of a type typical of such an agreement.
8. Trade and other payables
Unaudited Period ended 30 June 2022 Audited Year ended 31 December 2021
$ $
Trade payables 452,035 642,801
Amounts due to related parties 60,664 94
Salaries, accruals and taxes 1,153,186 777,366
Royalties Payable - 346,306
Deferred revenue 2,377,744 1,041,357
4,043,629 2,807,924
9. Related party transactions
BrandShield Limited is connected to its predecessor Domain the Net
Technologies Limited (the "Related Party"), a company registered in Israel.
BrandShield Limited demerged from the Related Party in 2013 and has directors
in common. Furthermore, the two parties share several operational costs,
including sharing rental costs. There is a formal agreement between the
Company and its related party (signed 17 May 2020).
BrandShield Limited is connected to its parent company BrandShield Systems
plc. There is a formal service agreement between the two companies (signed 25
July 2021).
BrandShield Limited is connected to its subsidiary BrandShield Inc.
10. Share based payments
The Company operates an equity-settled, share-based scheme under which the
Company receives services from employees as consideration for equity
instruments (options and warrants) of the Company. The fair value of the
third-party suppliers' services received in exchange for the grant of the
options is recognised as an expense in the Income Statement or charged to
equity depending on the nature of the service provided. The value of the
employee services received is expensed in the Income Statement and its value
is determined by reference to the fair value of the options granted:
· including any market performance conditions.
· excluding the impact of any service and non-market
performance vesting conditions (for example, profitability or sales growth
targets, or remaining an employee of the entity over a specified time period);
and
· including the impact of any non-vesting conditions (for
example, the requirement for employees to save).
The fair value of the share options and warrants are determined using the
Black Scholes valuation model at the date of grant.
Non-market vesting conditions are included in assumptions about the number of
options that are expected to vest. The total expense or charge is recognised
over the vesting period, which is the period over which all of the specified
vesting conditions are to be satisfied. At the end of each reporting period,
the entity revises its estimates of the number of options that are expected to
vest based on the non-market vesting conditions. It recognises the impact of
the revision to original estimates, if any, in the Income Statement or equity
as appropriate, with a corresponding adjustment to a separate reserve in
equity.
When the options are exercised, the Company issues new shares. The proceeds
received, net of any directly attributable transaction costs, are credited to
share capital (nominal value) and share premium when the options are
exercised.
11. Share capital and share premium
Ordinary shares are classified as equity. Incremental costs directly
attributable to the issue of new ordinary shares or options are shown in
equity as a deduction, net of tax, from the proceeds.
Number of Ordinary shares Number of Deferred shares Share Total
capital
Share premium
$ $ $
As at 1 January 2021 114,136,532 32,385,056 9,246,267 27,353,294 36,599,561
Issue of shares for warrants 3,814,389 52,968 385,956
- 332,995
As at 30 June 2021 117,950,921 32,385,056 9,299,228 27,686,289 36,985,517
As at 1 January 2022 117,950,921 32,385,056 9,299,228 27,686,289 36,985,517
Issue of shares 23,214,286 - 300,803 2,976,839 3,277,642
As at 30 June 2022 141,165,207 32,385,056 9,600,031 30,663,128 40,263,159
12. Financial assets at fair value through profit and loss
The Company reviews the fair value of its unquoted equity instruments at each
Statement of Financial Position date. This requires management to make an
estimate of the value of the unquoted securities in the absence of an active
market.
The Company follows the guidance of IFRS 9 to determine when an investment at
fair value through profit or loss is impaired. This determination requires
significant judgement. In making this judgement, the Company evaluates, among
other factors, the duration and extent to which the fair value of an
investment is less than its cost; and the financial health of the short-term
business outlook for the investee, including factors such as industry and
sector performance and operational and financing cash flow. Management also
considers external indicators such as technological advances and trends,
commodity prices, investment performance and demand for the underlying
commodity. Financial assets held at fair value through profit or loss are
assessed individually.
Unaudited Period ended 30 June 2022 Audited Year ended 31 December 2021
$ $
Opening balance 4,112,107 4,112,107
Foreign exchange (430,301) (41,495)
Closing balance 3,681,806 4,112,107
Financial assets include the following:
Unlisted securities Unaudited Period ended 30 June 2022 Audited Year ended 31 December 2021
$ $
UK 3,681,806 4,112,107
3,681,806 4,112,107
At 30 June 2022, the Directors' view of fair value of the Company's investment
in WeShop Ltd is $3,681,806 ($4,216,526 at 31 December 2021). This remains in
line with the aggregate cost of investment. While WeShop remains pre-revenue,
the Directors continue to believe that social commerce represents an exciting
and authentic digital shopping opportunity, particularly post Covid-19 which
has driven more traffic online and away from the high street. While the
Directors are hopeful of a deliverable transaction at an attractive valuation,
they consider it prudent to continue to fair value the asset at cost.
13. Subsequent events
No subsequent events were identified between the reporting period and issue of
the interim financial information.
14.Availability of Interim Report
The interim report is available on www.brandshield.com
(http://www.brandshield.com)
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