REG - Fiinu PLC - Half-Year results for the 6 months to 30 June 2024
19/09/2024 07:15
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RNS Number : 7793E Fiinu PLC 19 September 2024
19 September 2024
This announcement contains inside information stipulated under the UK version
of the Market Abuse Regulation (EU) No. 596/2014, part of English Law under
the European (Withdrawal) Act 2018, as amended. This information will be in
the public domain upon publication of this announcement.
FIINU PLC
("Fiinu" or the "Company" or the "Group")
Half-Year results for the six months ended 30 June 2024
Fiinu, a fintech group and creator of the Plugin Overdraft®, announces its
unaudited half-year results for the six months ended 30 June 2024.
Operational Update
· The Company has successfully completed all its previously announced
cost-cutting programmes, leading to a much-reduced loss before taxation.
· The Plugin Overdraft platform's intellectual property, documentation
and source code remain boxed in a secured data warehouse, as previously
announced. The Plugin Overdraft® platform can technically access over 100
million bank accounts in the UK.
· During the period, the Company has continued funding conversations
with potential investors.
· In addition, the Company continues to discuss providing
white-labelling services to other banks and licensing Fiinu's Plugin Overdraft
technology platform.
Financial Highlights
· Loss before taxation is reduced by 95% from the same period last year
to approximately £0.24m (2023: £4.41m). Cash at bank on 30 June 2024 was
approximately £0.7m. Since the period end, as in the past six years, the
Company has submitted a file for a research & development tax credit, for
approximately £0.6m.
· The Board remains confident in its ability to trade as a going
concern. The Board has the main shareholder support, the operating losses have
been reduced, and the monthly burn rate is being managed effectively with
existing liquidity.
Outlook
· In addition to continuing to look to secure the funding required to
enable it to re-visit its application for a UK Banking Licence and potential
white-labelling or licensing opportunities, the Board remains open to
exploring corporate transactions with other complementary businesses in the
fintech or banking arena.
· The ideal targets should have strategic and business ethics that
synergise with Fiinu's proposition, corporate culture, and values, such as
improving financial inclusion through innovative use of open banking-enabled
technologies and pan-European expansion ambitions.
Dr Marko Sjoblom, Fiinu CEO, commented:
"I am pleased to report that the Company has made significant strides towards
achieving financial stability. The successful completion of our cost-cutting
initiatives is a major milestone, resulting in a 95% reduction in losses
compared to the same period last year. This disciplined approach to financial
management has allowed us to protect our cash position and maintain sufficient
liquidity to support ongoing operations, including our efforts to secure
additional funding.
"Our Plugin Overdraft® platform, which can technically access over 100
million UK bank accounts, remains a core asset. While our intellectual
property, documentation, and source code are securely stored, we continue to
explore strategic opportunities for white-labelling services and licensing of
this unique platform technology. These discussions are ongoing and reflect our
commitment to unlocking the full value of our proprietary offerings in a
manner that aligns with the market's needs and our long-term objectives.
"From a strategic perspective, we are maintaining conversations with potential
investors to secure additional funding. At the same time, the Board is also
exploring potential acquisitions that align with our mission of improving
financial inclusion through innovative technologies. We are actively looking
for businesses that not only complement our existing capabilities but also
share our corporate values, including a commitment to open banking-enabled
technologies and a vision for pan-European growth.
"In conclusion, I am confident that our strategic initiatives, coupled with
prudent financial management, position us well for future success. The Board
remains focused on delivering value for our shareholders and stakeholders as
we continue to navigate the evolving fintech landscape."
Key Financials
Highlighted below are the key unaudited financial highlights for the six
months to 30 June 2024, compared to the six months to 30 June 2023 and the
audited year ended 31 December 2023.
Unaudited Unaudited Audited
half year to 30 Jun 2024 half year to 30 Jun 2023 year to 31 Dec 2023
£ £ £
Revenue - - -
Gross profit - - -
Administrative expenses (238,606) (4,395,412) (7,223,494)
Investment revenues / (cost) - 27,851 -
Net finance (cost) / income 433 (47,924) (28,664)
Loss before taxation (238,173) (4,415,486) (7,252,158)
Income tax income - 253,462 16,157
Loss and total comprehensive income (continuing operations) (238,173) (4,162,024) (7,236,001)
Fair value adjustments - - (67,109)
Impairment of investments - - (1,014,421)
Total Loss and total comprehensive (238,173) (4,162,024) (8,317,531)
income
Earnings / (loss) per share
Basic (0.001) (1.75) (3.06)
Diluted (0.001) (1.75) (3.06)
Enquiries:
Fiinu Plc
Dr Marko Sjoblom, Chief Executive Officer Tel: +44 (0)1932 629 582
marko@fiinu.com
SPARK Advisory Partners Limited (Nomad) Tel: +44 (0) 203 368 3550
Mark Brady / Adam Dawes
SP Angel Corporate Finance LLP (Broker) Tel: +44 (0) 207 470 0470
Matthew Johnson / Charlie Bouverat (Corporate Finance)
Abigail Wayne / Rob Rees (Corporate Broking)
About Fiinu
Fiinu, founded in 2017, is a fintech group that has developed the Plugin
Overdraft®, which is an unbundled overdraft solution that allows customers to
have an overdraft without changing their existing bank. The underlying bank
Independent Overdraft® technology platform is bank agnostic, which therefore
enables it to serve all other banks' customers. The Plugin Overdraft®
platform can technically access over 100 million bank accounts in the UK. Open
Banking allows Fiinu's Plugin Overdraft® to attach ("plugin") to the
customer's existing primary bank account, no matter which bank they may use.
Fiinu's vision is built around Open Banking, and it believes that it increases
competition and innovation in banking.
For more information, please visit www.fiinuplc.com (http://www.fiinuplc.com)
Consolidated statement of comprehensive income
Unaudited Unaudited Audited
half year to 30 Jun 2024 half year to 30 Jun 2023 year to 31 Dec 2023
£ £ £
Revenue - - -
Gross profit - - -
Administrative expenses (238,606) (4,395,412) (7,223,494)
Investment revenues / cost - 27,851 -
Net finance income / cost 433 (47,924) (28,664)
Loss before taxation (238,173) (4,415,486) (7,252,158)
Income tax income - 253,462 16,157
Loss and total comprehensive income (continuing operations) (238,173) (4,162,024) (7,236,001)
Fair value adjustments - -- (67,109)
Impairment of investments - - (1,014,421)
Total Loss and total (238,173) (4,162,024) (8,317,531)
comprehensive income
Earnings / (loss) per share
Basic (0.001) (1.75) (3.06)
Diluted (0.001) (1.75) (3.06)
Consolidated statement of financial position
30 June 2024 (unaudited) 30 June 2023 (unaudited) 31 Dec 2023
Notes £ £ (audited)
£
ASSETS
Non-current assets
Intangible assets - 878,639 -
Property, plant and equipment - 209,949 -
- 1,088,588 -
Current assets
Trade and other receivables 64,386 429,147 236,720
Current tax recoverable - 606,341 -
Cash and cash equivalents 691,280 4,284,783 1,310,757
755,666 5,320,361 1,547,477
Total assets 755,666 6,408,949 1,547,477
LIABILITIES
Non-Current liabilities
Lease liabilities - 23,707 -
- 23,707 -
Current liabilities
Trade and other payables 144,371 1,846,203 663,940
Lease liabilities 23,707 137,381 57,776
168,078 1,983,584 721,716
Total liabilities 168,078 2,007,291 721,716
Capital and Reserves
Called up share capital 27,474,724 27,474,724 27,474,724
Share premium 9,475,486 9,482,775 9,475,486
Own shares (5,100) - (5,100)
Merger reserve (21,120,782) (21,120,782) (21,120,782)
Shares to be issued 50,000 - 50,000
Retained losses (15,286,740) (11,435,059) (15,048,567)
Total Equity 587,588 4,401,658 825,761
Total equity and liabilities 755,666 6,408,949 1,547,477
Consolidated statement of cash flows
6 months 6 months 12 months
Notes ended 30 June 2024 (unaudited) ended 30 June 2023 (unaudited) ended 31 Dec 2023
£ £ (audited)
£
Cash flows from operating activities
Cash absorbed by operations (585,841) (4,177,353) (6,647,178)
Income taxes refunded - - 369,036
Net cash outflow from operating activities (585,841) (4,177,353) (6,278,142)
Investing activities
Purchase of property, plant - (8,618) (8,618)
and equipment
Interest received 2,013 27,851 46,176
Net cash generated from investing activities 2,013 19,233 37,558
Financing activities
Proceeds from issue of shares - 1,250,000 500,000
Proceeds from borrowings - 250,000 1,000,000
Repayment of borrowings - - (750,000)
Payment of lease liabilities (34,069) (65,668) (167,929)
Interest paid (1,580) (47,924) (75,891)
Net cash generated from financing activities (35,649) 1,386,408 506,180
Net increase/(decrease) in cash and cash (619,477) (2,771,713) (5,734,404)
equivalents
Cash at beginning of period 1,310,757 7,045,161 7,045,161
Cash at end of period 691,280 4,273,448 1,310,757
Consolidated statement of changes in equity Attributable to equity shareholders of the company
Called up Share Revaluation/ Retained Total
share capital premium Merger reserve/ earnings
shares to be issued
£ £
£ £ £
Balance at 31 27,474,724 9,475,486 (21,075,882) (15,048,567) 825,761
December 2023
Period ended 30
June 2024
Loss and total
comprehensive income for the period - - - (238,173) (238,173)
Issue of share capital - - - - -
Balance at 30 June 2024 27,474,724 9,475,486 (21,075,882) (15,286,740) 587,588
NOTES TO THE FINANCIAL STATEMENTS
Financial information contained in this document does not constitute statutory
accounts within the meaning of section 434 of the Companies Act 2006 ("the
Act"). The statutory accounts for the year ended 31 December 2023 have been
filed with the Registrar of Companies. The report of the auditors confirmed
that the financial statements:
· give a true and fair view of the state of the Group's and of the
Parent Company's affairs as at 31 December 2023 and of the Group's loss for
the period then ended;
· have been properly prepared in accordance with UK-adopted
international accounting standards and, as regards the parent company
financial statements, as applied in accordance with the provisions of the
Companies Act 2006; and
· have been prepared in accordance with the requirements of the
Companies Act 2006.
The auditors conducted the audit in accordance with International Standards on
Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those
standards are further described in the "Auditor's responsibilities for the
audit of the financial statements" section of our report. We are independent
of the Group and the Parent Company in accordance with the ethical
requirements that are relevant to our audit of the financial statements in the
UK, including the Financial Reporting Council's ('FRC') Ethical Standard as
applied to listed entities and public interest entities and we have fulfilled
our other ethical responsibilities in accordance with these requirements. We
believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion.
The financial information for the six months ended 30 June 2024 and 30 June
2023 are unaudited. This announcement was approved by the Board on 17
September 2024.
1. Reporting entity
Fiinu Plc (the "Company" or the "Group") is a public company limited by shares
incorporated in England and Wales. The registered office is Ibex House, Baker
Street, Weybridge, KT13 8AH. The consolidated financial statements of the
Company as of 30 June 2024 and for the six months ended 30 June 2023 comprise
the Company and its subsidiaries (together referred to as the "Group").
Fiinu, founded in 2017, is a fintech group that developed the Plugin
Overdraft®, which is an unbundled overdraft solution that allows customers to
have an overdraft without changing their existing bank. The underlying bank
Independent Overdraft technology platform is bank agnostic, which therefore
enables it to serve all other banks' customers. The Plugin Overdraft®
platform can technically access over 100 million bank accounts in the UK. Open
Banking allows Fiinu's Plugin Overdraft® to attach ("plugin") to the
customer's existing primary bank account, no matter which bank they may use.
Fiinu's vision is built around Open Banking, and it believes that it increases
competition and innovation in banking.
For more information, please visit www.fiinuplc.com (http://www.fiinuplc.com)
2. Basis of preparation
The consolidated financial information has been prepared in accordance with UK
adopted international accounting standards. The consolidated financial
statements are presented in pounds sterling, the functional currency of the
Company and the presentation currency of the Group.
The interim financial information is made up to 30 June 2024. Where necessary,
adjustments are made to the financial information of subsidiaries to bring the
accounting policies used into line with those used by other members of the
Group.
All intra-group transactions, balances and unrealised gains on transactions
between Group companies are eliminated on consolidation. Unrealised losses are
also eliminated unless the transaction provides evidence of an impairment of
the asset transferred.
Subsidiaries are consolidated in the Group's financial statements from the
date that control
commences until the date that control ceases.
Acquisitions are accounted for using the acquisition method. the cost of an
acquisition is measured at fair value at the date of exchange of the
consideration. Identifiable assets and liabilities of the acquired business
are recognised at their fair value at the date of acquisition. To the extent
that the cost of an acquisition exceeds the fair value of the net assets
acquired, the difference is recorded as goodwill. Where the fair value of the
net assets acquired exceeds the cost of an acquisition, the difference is
recorded in profit and loss.
The Group has chosen not to adopt IAS 34 "Interim Financial Statements" in
preparing the interim financial information.
3. Significant accounting policies
The accounting policies set out in detail in note 2 of the Group's
consolidated financial statements to 31 December 2023 have been applied
consistently to these unaudited financial statements to 30 June 2024. There
are no new standards or amendments to standards which are material to the
accounts for the half year ended 30 June 2024.
4. Events in the six months ended 30 June 2024 Business Highlights: Operational Update
· The Company has successfully completed all its previously
announced cost-cutting programmes, leading to a much-reduced loss before
taxation.
· The Plugin Overdraft platform's intellectual property,
documentation and source code remain boxed in a secured data warehouse, as
previously announced. The Plugin Overdraft platform can technically access
over 100 million bank accounts in the UK.
· During the period, the Company has continued funding
conversations with potential investors.
· In addition, the Company continues to discuss providing
white-labelling services to other banks and licensing Fiinu's Plugin
Overdraft® technology platform.
Financial Highlights
· Loss before taxation is reduced by 95% from the same period last year
to approximately £0.24m (2023: £4.41m). Cash at bank on 30 June 2024 was
approximately £0.7m. Since the period end, as in the past six years, the
Company has applied for a research & development tax credit, which equates
to approximately £0.6m.
· The Board remains confident in its ability to trade as a going
concern. The Board has the main shareholder support, the operating losses have
been reduced, and the monthly burn rate is being managed effectively with
existing liquidity.
Outlook
· In addition to continuing to look to secure the funding required to
enable it to re-visit its application for a UK Banking Licence and potential
white-labelling or licensing opportunities, the Board remains open to
exploring corporate actions with other complementary businesses in the fintech
or banking arena.
· The ideal businesses should have strategic and business ethics that
synergise with Fiinu's proposition, corporate culture, and values, such as
improving financial inclusion through innovative use of open banking-enabled
technologies and pan-European expansion ambitions.
5. Share capital
Allotted, issued and fully paid:
Number of shares Nominal value
£
Ordinary shares with nominal value of £0.10 per
share as at:
31 December 2023 274,747,246 27,474,725
Issued in the half year
30 June 2024 274,747,246 27,474,725
There are no restrictions on the transfer of shares in Fiinu Plc. All shares
carry equal voting rights.
FORWARD LOOKING STATEMENTS
This document contains certain forward-looking statements which reflect the
knowledge and information available to the Company during the preparation and
up to the publication of this document. By their very nature, these statements
depend upon circumstances and relate to events that may occur in the future
thereby involving a degree of uncertainty. Although the Group believes that
the expectations reflected in these statements are reasonable, it can give no
assurance that these expectations will prove to have been correct. Given that
these statements involve risks and uncertainties, actual results may differ
materially from those expressed or implied by these forward- looking
statements.
The Group undertakes no obligation to update any forward-looking statements
whether because of new information, future events or otherwise.
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