REG - Fiinu PLC - Interim results - six months ended 30 June 2023
17/08/2023 08:15
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RNS Number : 6339J Fiinu PLC 17 August 2023
17 August 2023
This announcement contains inside information as stipulated under the UK
version of the Market Abuse Regulation (EU) No. 596/2014 which is part of
English Law by virtue of the European (Withdrawal) Act 2018, as amended. On
publication of this announcement, this information is considered to be in the
public domain.
FIINU PLC
("Fiinu" or the "Company" or the "Group")
Interim results for the six months ended 30 June 2023
Fiinu, a fintech group, creator of the Plugin Overdraft®, announces its
unaudited half-year results for the six months ended 30 June 2023.
Business Highlights
· The Company continues to source the additional funding required for
it to re-apply to the regulators to re-start its banking licence application
· April 2023: Successful completion of the technology build of the
Plugin Overdraft®
· July 2023: Cost reductions initiated within subsidiaries Fiinu 2
Limited and Fiinu Holdings Limited, including providing notice to reduce
staffing levels and re-negotiation or termination of agreements with suppliers
· March 2023: Raised £0.5m of new ordinary share capital by immediate
subscription to new and existing shareholders
· April 2023: Raised £0.75m of new ordinary share capital by
exercising the right to convert the drawn down loans with Dewscope Limited
into equity
· April 2023: Application to withdraw its banking licence with aim to
re-apply after a short period of two to three months once full funding
commitment is secured
· Other options are also being considered by the Board, which may
include a change of strategy and/or a sale of the Group's technology assets
should the additional funding commitment it requires not be forthcoming
Financial Highlights
· Cash at period end £4.3 million
· Accounting loss for the period £4.2 million
Chris Sweeney, Fiinu's Chief Executive said:
"Given the business was operationally ready, following the successful
completion of the technology build of the Plugin Overdraft®, it is therefore
with deep regret that we have had to scale back operations in Fiinu 2 Limited
and Fiinu Holdings Limited. The current general capital, and market
specific conditions, are increasingly challenging for a business at Fiinu's
current stage of development.
"I would like to take the opportunity to thank our shareholders for their
support and colleagues for the considerable efforts in developing the
technology and the infrastructure to be in a position to launch the product
into the market.
"We continue in our efforts to seek the required investment to re-apply for
the banking licence, whilst also considering other options for the business,
which may include a change of strategy or sale of the Group's technology
assets."
Key Financials
Highlighted below are the key unaudited financial highlights for the six
months to 30 June 2023, compared to the six months to 30 June 2022 and the
audited year ending 31 December 2022.
Unaudited Unaudited Audited
half year to
half year to
year to
30 Jun 2023
30 Jun 2022
31 Dec 2022
£ £ £
Revenue - - -
Gross profit - - -
Administrative expenses (4,395,412) (983,206) (8,218,903)
Investment revenues 27,851 11,596
Net finance cost / income (47,924) 69,111 (9,970)
Loss before taxation (4,415,486) (914,095) (8,217,277)
Income tax income 253,462 - 377,879
Loss and total comprehensive income (continuing operations) (4,162,024) (914,095) (7,839,398)
Gain on disposal of investments - 612,377 -
Impairment of goodwill and intangible assets - (219,595) -
Profit from discontinued operations - 425,699 -
Total Loss and total comprehensive income (4,162,024) (95,614) (7,839,398)
Earnings per share
Basic (1.75) (0.26) (3.31)
Diluted (1.75) (0.26) (3.31)
Enquiries:
Fiinu plc via Brazil London (press office for Fiinu)
Chris Sweeney, Chief Executive Officer
www.fiinu.com (http://www.fiinu.com)
SPARK Advisory Partners Limited (Nomad) Tel: +44 (0) 203 368 3550
Mark Brady / Adam Dawes
SP Angel Corporate Finance LLP (Joint Broker) Tel: +44 (0) 207 470 0470
Matthew Johnson / Charlie Bouverat (Corporate Finance)
Abigail Wayne / Rob Rees (Corporate Broking)
Panmure Gordon (UK) Limited (Joint Broker) Tel: +44 (0)207 886 2500
Stephen Jones / Atholl Tweedie (Corporate Finance)
Hugh Rich (Corporate Broking)
Brazil London (press office for Fiinu) Tel: +44 (0) 207 785 7383
Joshua Van Raalte / Christine Webb / Jamie Lester
About Fiinu
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, that therefore
enables it to serve all other banks' customers. 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 UK banking.
For more information, please visit www.fiinu.com (http://www.fiinu.com)
Consolidated statement of comprehensive income
Unaudited Unaudited Audited
half year to
half year to
year to
30 Jun 2023
30 Jun 2022
31 Dec 2022
£ £ £
Revenue - - -
Gross profit - - -
Administrative expenses (4,395,412) (983,206) (8,218,903)
Investment revenues 27,851 11,596
Net finance income / cost (47,924) 69,111 (9,970)
Loss before taxation (4,415,486) (914,095) (8,217,277)
Income tax income 253,462 - 377,879
Loss and total comprehensive income (continuing operations) (4,162,024) (914,095) (7,839,398)
Gain on disposal of investments - 612,377 -
Impairment of goodwill and intangible assets - (219,595) -
Profit from discontinued operations - 425,699 -
Total Loss and total comprehensive income (4,162,024) (95,614) (7,839,398)
Earnings per share
Basic (1.75) (0.26) (3.31)
Diluted (1.75) (0.26) (3.31)
Consolidated statement of financial position
30 June 2023 30 June 2022 31 Dec 2022
(unaudited) (unaudited) (audited)
Notes £ £ £
ASSETS
Non-current assets
Intangible assets 878,639 - 878,639
Property, plant and equipment 209,949 - 276,524
1,088,588 - 1,155,163
Current assets
Trade and other receivables 429,147 388,456 660,078
Current tax recoverable 606,341 - 352,879
Cash and cash equivalents 4,284,783 3,577,276 7,045,161
5,320,361 3,965,732 8,058,118
Total assets 6,408,949 3,965,732 9,213,281
LIABILITIES
Non-Current liabilities
Lease liabilities 23,707 - 93,425
23,707 - 93,425
Current liabilities
Trade and other payables 1,846,203 1,330,817 1,693,603
Lease liabilities 137,381 - 133,331
1,983,584 1,330,817 1,826,934
Total liabilities 2,007,291 1,330,817 1,920,359
Capital and Reserves
Called up share capital 27,474,724 3,758,184 26,513,186
Share premium 9,482,775 5,189,313 9,194,313
Share based payment reserve - 40,218 -
Merger reserve (21,120,782) - (21,120,782)
Retained losses (11,435,059) (6,352,800) (7,283,795)
Total Equity 4,401,658 2,634,915 7,292,922
Total equity and liabilities 6,408,949 3,965,732 9,213,281
Consolidated statement of cash flows
6 months ended 6 months ended 12 months
30 June 2022 30 June 2022 ended
Notes (unaudited) (unaudited)* 31 Dec 2021
£ £ (audited)*
£
Cash flows from operating activities
Cash absorbed by operations (4,177,353) (315,938) (4,497,027)
Interest Paid - -
Income taxes refunded - 120,150
Net cash outflow from operating activities (4,177,353) (315,938) (4,376,877)
Investing activities
Purchase of intangible assets - (849,076)
Purchase of property, plant and equipment (8,618) (4,391) (50,457)
Investment loan - (800,000) -
Interest received 27,851 259 11,596
Net cash generated from investing activities 19,233 (804,132) (887,937)
Financing activities
Proceeds from issue of shares 1,250,000 3,000,000 8,010,000
Net of cash acquired on reverse takeover
- 3,577,275
Costs of share issue - (197,229) -
Proceeds from borrowings 250,000 (833) 500,000
Payment of lease liabilities (65,668) (55,504) (47,533)
Interest paid (47,924) (1,848) (5,137)
Net cash generated from financing activities 1,386,408 2,744,586 12,034,605
Net increase/(decrease) in cash and cash (2,771,713) 1,624,516 6,769,791
equivalents
Cash at beginning of period 7,045,161 464,232 275,370
Cash at end of period 4,273,448 2,088,748 7,045,161
* Statement of cashflows has been reformatted in line with audited accounts
for 12 months ended 31 Dec 2021
Consolidated statement of changes in equity
Attributable to equity shareholders of the company
Called up share capital Share premium Revaluation / Merger reserve Retained earnings Total
£ £
£ £
£
Balance at 31 December 2022
26,513,186 9,194,313 (21,120,782) (7,293,795) 7,292,922
Period ended 30 June 2023
Loss and total comprehensive income for the year
- - - (4,141,265) (4,141,265)
Transactions with owners in their capacity as owners:
Issue of share capital 961,722 288,462 - - 1,250,000
Balance at 30 June 2023
27,474,724 9,482,775 (21,120,782) (11,435,059) 4,401,658
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 2022 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 2022 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 auditors drew the attention to the financial statements, which indicates
that when assessing the Group and Parent Company's ability to continue as a
going concern, the directors have concluded that a material uncertainty exists
in relation to the Company's ability to raise the capital required to support
its subsidiaries, ('Fiinu 2 Limited's'), year one of operations post approval
from the Prudential Regulatory Authority ('PRA') and the Financial Conduct
Authority ('FCA') to operate as a bank without restrictions, following the
re-submission of the Bank's banking application.
The financial information for the six months ended 30 June 2023 and 30 June
2022 are unaudited.
This announcement was approved by the Board on 16 August 2023.
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 Meadows
Business Park, Blackwater, Camberley, GU17 9AB. The consolidated financial
statements of the Company as at 30 June 2023 and for the six months ended 30
June 2022 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, that therefore
enables it to serve all other banks' customers. 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 UK banking.
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 presentation currency of the Group.
The interim financial information is made up to 30 June 2023. 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 2022 have been applied
consistently to these unaudited financial statements to 30 June 2023There are
no new standards or amendments to standards which are material to the accounts
for the half year ended 30 June 2023.
4. Events in the six months ended 30 June 2023
Business Highlights
· The Company continues to source the additional funding required for
it to re-apply to the regulators to re-start its banking licence application
· April 2023: Successful completion of the technology build of the
Plugin Overdraft®
· July 2023: Cost reductions initiated within subsidiaries Fiinu 2
Limited and Fiinu Holdings Limited, including providing notice to reduce
staffing levels and re-negotiation or termination of agreements with suppliers
· March 2023: Raised £0.5m of new ordinary share capital by immediate
subscription to new and existing shareholders
· April 2023: Raised £0.75m of new ordinary share capital by
exercising the right to convert the drawn down loans with Dewscope Limited
into equity
· April 2023: Application to withdraw its banking licence with aim to
re-apply after a short period of two to three months once full funding
commitment is secured
· Other options are also being considered by the Board, which may
include a change of strategy and/or a sale of the Group's technology assets
should the additional funding commitment it requires not be forthcoming
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 2022 265,397,660 26,538,766
Issued in the half year
30 June 2023 275,241,062 27,524,106
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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