REG - PensionBee Group plc - Half-year Report
31/08/2023 07:00
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RNS Number : 8746K PensionBee Group plc 31 August 2023
PensionBee Group plc
Incorporated in England and Wales
Registration Number: 13172844
LEI: 2138008663P5FHPGZV74
ISIN: GB00BNDRLN84
Interim Results
For the six months ended 30 June 2023
PensionBee Group plc ('PensionBee' or the 'Company'), a leading online pension
provider, today announces interim results for the six month period ended 30
June 2023 (1H 2023).
The Company is pleased to announce that it has delivered strong financial and
operational performance during the first half of the year, with high levels of
growth achieved across key metrics, in line with the trading update released
on 20 July 2023.
Performance Overview
● Revenue increased by 32% to £10.9m (1H 2022: £8.3m)
● Profit/(Loss) before Tax was £(9.2)m (1H 2022: £(16.9)m)
● Adjusted EBITDA was £(7.9)m (1H 2022: £(14.9)m)
● Basic Earnings per Share was (4.06)p (1H 2022: (7.54)p)
● Assets under Administration ('AUA') increased by 38% year on year to
£3,704m (1H 2022: £2,676m)
● Invested Customers ('IC') increased by 33% to 211,000 (1H 2022:
159,000)
● Customer Retention Rate and AUA Retention Rate were both stable at
>95% (1H 2022: >95%)
● Excellent Trustpilot score of 4.6★ (1H 2022: 4.6★)
● Cash position of £14m (1H 2022: £29m)
Romi Savova, Chief Executive Officer of PensionBee, commented:
"We are proud to have helped an increasing number of customers take control of
their retirement planning and prepare for a happy future. PensionBee's strong
results and ongoing growth have positioned us well on track to deliver monthly
Adjusted EBITDA profitability by the end of the year. The scalability of our
technology platform drives margin improvement, and we are looking forward to
further innovating and evolving with our customers as we champion their voices
in the industry.
We are confident that our focus on serving and delighting customers will allow
us to continue to grow and capture market share."
Financial Highlights*
For the 6-month Period Ending
Jun-2023 Jun-2022 YoY
Revenue (£m) 10.9 8.3 32%
Profit/(Loss) before Tax (9.2) (16.9) 46%
Adjusted EBITDA (£m)** (7.9) (14.9) 47%
Adjusted EBITDA Margin (% of Revenue)** (73)% (181)% 108ppt
Basic and Diluted Earnings per Share (4.06)p (7.54)p 86%
Non-Financial Highlights*
As at Period End
Jun-2023 Jun-2022 YoY
AUA (£m) 3,704 2,676 38%
AUA Retention Rate (% of AUA) >95% >95% stable
Invested Customers ('IC') (thousands) 211 159 33%
Customer Retention Rate (% of IC) >95% >95% stable
Cost per Invested Customer (£) 247 260 (5)%
Realised Revenue Margin 0.65% 0.63% +1.4bps
* See Definitions section.
** PensionBee's KPIs include alternative performance measures ('APM's), which are
indicated with a double asterisk. APMs are not defined by International
Financial Reporting Standards ('IFRS') and should be considered together with
the Group's IFRS measurements of performance. PensionBee believes APMs assist
in providing greater insight into the underlying performance of PensionBee and
enhance comparability of information between reporting periods.
*** As highlighted in the Annual Report and Financial Statements 2022 the Company
outlined from 2023 it would retire from its regular reporting framework the
following Financial Performance Measures: Annual Run Rate ('ARR') Revenue to
primarily focus on the Revenue metric as the Company reaches profitability.
Non-Financial Performance Measures: Registered Customers ('RC'), Same Year
RC:IC Conversion and Active Customers ('AC') These metrics were retired to
focus on the Invested Customers that generate AUA. Additionally, Contractual
Revenue Margin (% of AUA) was retired and Realised Revenue Margin introduced.
Contacts
PensionBee press@pensionbee.com
Rachael Oku
Laura Dunn-Sims
Forward-Looking Statements
Statements that are not historical facts, including statements about
PensionBee's or management's beliefs and expectations, are forward-looking
statements. The interim results contain forward-looking statements, which by
their nature involve substantial risks and uncertainties as they relate to
events and depend on circumstances which will occur in the future and actual
results and developments may differ materially from those expressly stated or
otherwise implied by these statements.
These forward-looking statements are statements regarding PensionBee's
intentions, beliefs or current expectations concerning, among other things,
its results of operations, financial condition, prospects, growth, strategies
and the industry and markets within which it operates.
These forward-looking statements relate to the date of these interim results
and PensionBee does not undertake any obligation to publicly release any
revisions to these forward-looking statements to reflect events or
circumstances after the date of the interim results.
CEO's Report
We exist to make pensions simple so that everyone can look forward to a happy
retirement. Our aspiration is to build a lifetime relationship with our
customers, generating predictable and scalable revenue for our company and for
our investors.
We are very pleased to have delivered strong financial and operational
performance for the first half of 2023, driven by continued momentum in the
growth rates of our Invested Customer base, Assets under Administration
('AUA') and Revenue. Our business has continued to demonstrate resilience,
strength and substantial growth, set against a backdrop of continued
challenging global capital markets, heightened geopolitical risk and an
extensive cost of living crisis that has continued to impact everyone across
the UK. All this of course, means that the need for retirement planning and
pension ownership has never been greater.
The first half of 2023 started strongly and we demonstrated our continued
ability to grow, adding £469m of Net Flows (1H 2022: £481m) from new and
existing customers reaching £3.7bn of AUA by the end of June (H1 2022:
£2.7bn).
We achieved strong momentum in customer growth, with efficient new customer
acquisition having added 28,000 Invested Customers (H1 2022: 41,000),
representing £365m of Net Flows for the first half of the year (H1 2022:
£353m). Existing customers also continued to accumulate pension savings with
us, representing £104m of AUA over the period (H1 2022: £128m). Our
customers' pension assets also benefited from market appreciation in the first
half, accounting for the balance of asset growth.
We delivered this high customer growth whilst maintaining excellent customer
satisfaction, recording a sustained Customer Retention Rate of 97% over the
period (H1 2022: 97%). We have also sought to balance our growth ambition with
our expectations of achieving monthly Adjusted EBITDA profitability by the end
of 2023.
Our results are supported by our ability to execute and advance our strategic
goals. Our customer-centric proposition, led by product and technological
innovation, excellent customer service as evidenced by our Excellent
Trustpilot score of 4.6★ out of 5 (based on 9,128 reviews), and transparent
and straightforward fees, has continued to resonate well in the enormous UK
market of pension savers. Our ability to efficiently spend on marketing has
seen us maintain our household brand name status and has supported new
customer growth with a declining customer acquisition cost.
We look forward to further advancing our strategy, growing our market share
and fulfilling our ambition to help everyone look forward to a happy
retirement.
Overview
We maintained our strong growth momentum in the first half of 2023. AUA
increased by 38% to £3,704m (1H 2022: £2,676m), led by an increase in
Invested Customers of 33% to 211,000 (1H 2022: 159,000). This resulted in an
increase in Revenue of 32% to £10.9m (1H 2022: £8.3m) across the same
period.
Profit/(Loss) before Tax narrowed to £(9.2)m (1H 2022: £(16.9)m) reflecting
planned investment in marketing, in the technology platform and in our people,
to drive rapid and efficient growth. Accordingly, Adjusted EBITDA narrowed to
£(7.9)m (1H 2022: £(14.9)m) and the Adjusted EBITDA Margin narrowed to (73)%
(1H 2022: (181)%), demonstrating the operating leverage achieved.
Advancing our Strategic Goals
Our mission is to make pensions simple so that everyone can look forward to a
happy retirement. We have continued to successfully execute our five-point
strategy, which supports our mission, and which drives our rapid and
sustainable growth:
Efficient investment in customer acquisition and brand awareness
During the first half of the year, we spent £6.8m on marketing (1H 2022:
£12.4m), taking our cumulative marketing expenditure to more than £50m,
supporting brand building and customer acquisition.
We expect to continue investing in brand awareness and the maintenance of
ongoing household brand name status through the renewal of our partnership
with Brentford Football Club, becoming the left sleeve sponsor of the Men's
first team and the 'front of shirt' sponsor for the B team, Academy and
Women's team.
We have continued to apply our data-driven, multi-channel approach to
successfully reach new customers, bringing educational initiatives to
customers in ways which increase appeal, for example, through roadshows,
podcasts and new channels such as TikTok.
The Cost per Invested Customer ('CPIC') has continued to demonstrate a
downward trajectory, in line with expectations, given the depth of our
marketing capability in efficient customer acquisition and the substantial
brand investment made to date.
As we consider marketing initiatives for the rest of the year, we will
actively focus on further reducing our CPIC, together with nurturing the
conversion of our customer funnel to grow our Invested Customers.
Leadership in product innovation
During the first half of the year, we continued to develop our product
offering for the benefit of our customers, incrementally rolling out new
features to enable greater customer engagement. Our data shows that engaged
customers are more likely to grow their pensions with us and are therefore
more likely to enjoy the type of retirement they deserve.
New features included improvements to enable customers to access and find our
helpful content (searchable FAQs and enhanced help functionality) and a new
online tax relief calculator designed to encourage customers to make the most
of their pension contributions ahead of the tax year-end. While customers can
now read our content in the app, they will soon be served personalised content
features based on our predictions of their interests, to help them make more
of their money including by educating them on helpful complements to their
pension, such as life insurance.
We recently launched a partnership with LifeSearch to help our customers
obtain a range of insurance products including life and critical illness
cover, enabling them to continue to save for a happy retirement even if the
worst happens. So far initial customer demand has been positive and we look
forward to seeing this progress.
Investment in and development of an industry leading technology platform
We have continued to invest in our technology capability over the first half
of the year in support of our growth ambitions.
We have invested in the scalability of our technology through a focus on
internal automation, efficiency, security and pension transfer improvements to
support productivity, as demonstrated by a 12% improvement in the Invested
Customers per Staff Member productivity metric across the first half of the
year (1H 2022: 35%).
We have continued to explore and adopt artificial intelligence tooling within
our departments, using it for initial content generation, project research and
coding problem resolution. We are increasingly integrating our data platform
within our daily product management operations, linking core KPIs to projects
to ensure our multidisciplinary development teams remain productive and
impactful.
Finally, we continued to implement cyber security tools and best practices to
keep our customers' data safe. We have reinforced a culture of security
awareness through increasing standardisation, monitoring and automation in
information security operations and compliance.
Focus on excellent customer service
We have continued our relentless focus on the provision of excellent customer
service to create the best pension experience possible for our customers,
leaving them delighted.
We are proud to have delivered excellent customer support, as demonstrated by
rapid response times, with live chat and phone waiting times of 16 and 22
seconds respectively. Consequently, we have continued to enjoy high ratings
from our customers, giving our team great purpose and inspiration. We pay
close attention to our Trustpilot and app store ratings, which serve as an
indicator of customer satisfaction. We are pleased to have maintained our
Excellent ratings across both, with a 4.6★ Trustpilot rating having been
achieved from 9,128 customer reviews (1H 2022: 4.6★).
Ensuring excellent levels of customer satisfaction is central to our ambition
of retaining and serving our customers throughout their lifetimes. We
demonstrated the continued strength of our customer value proposition by
maintaining a Customer Retention Rate of 97% for the first half of the year.
It is the high levels of recurring revenues that are generated as a result of
these high customer retention levels, combined with the scalability of our
technology platform, that underpin the generation of operating leverage over
time.
Focus on investment solutions designed for customers
We have continued to remain focused on our investment range, keeping abreast
of new industry developments, ensuring that we deliver value for money and
innovating and adapting our products to suit the evolving needs of our
customers.
Our ongoing programme of engagement with our asset management partners helps
to determine the optimal product range. We are proud to work with the largest
money managers in the world, who help us give our customers peace of mind.
Over the first half of the year, we successfully launched our Impact Plan,
which invests exclusively in companies that seek to solve the world's great
social and environmental problems, aligning with PensionBee's focus on using
its influence to respond to customer needs. With the addition of the Impact
Plan, we are confident we have the right investment range to serve the mass
market of consumers.
Regulatory Developments
We are active in the industry as a supporter of consumer rights and we
continue to advocate for greater levels of transparency, easier switching and
fairer charging across all pension products.
During the first half of the year, we implemented the Financial Conduct
Authority's ('FCA') Consumer Duty.
PensionBee's vision is customer focused and customers have been at the heart
of everything PensionBee does since its inception. This culture is woven into
the fabric of our approach across all departments. Our five company values -
Honesty, Innovation, Love, Quality and Simplicity - provide a framework that
guides our decision-making, with particular regard given to how our values
shape the way we interact with our customers. The FCA's new Consumer Duty sets
higher and clearer consumer protection standards across financial services
through an overarching principle that requires firms to act to deliver good
outcomes for retail customers.
The FCA's Consumer Principle is supported by three cross-cutting rules,
requiring that firms must act in good faith towards customers, avoid
foreseeable harm to customers and enable and support customers to pursue their
financial objectives. Consumer Duty outcomes relate to crucial elements of the
firm-consumer relationship: consumers should receive communications they can
understand, products and services should meet their needs and offer fair
value, and consumers should get the support they need when they need it.
While the Consumer Duty is well embedded in our general approach to business
and to our customers, we invested ample time in enhancing our documentation,
training our team and creating automated metric reporting to monitor good
consumer outcomes and avoid foreseeable harm, in line with the duty.
We remain supportive of the initiatives of the FCA, the Department for Work
and Pensions and the Pensions Regulator, leading to improvements in the
pension landscape for consumers. We believe the overall direction of reforms
supports our approach to putting customers at the heart of what we do, our
business model, our mission and our vision.
Dividend
In line with our stated dividend policy, the Company does not intend to pay
any dividends as we continue to invest in growth and execute our strategy.
Whilst the Company has not paid dividends since incorporation, it intends to
revisit its dividend policy in future years and may revise its dividend policy
from time to time.
Outlook
We remain confident in our potential for continued growth and profitability,
due to our ability to attract new customers that generate growth in recurring
revenue through our scalable technology platform.
We are pleased to reiterate the guidance previously provided at the time of
the 2022 full year results. Our cash balance of £14m leaves us well-placed to
pursue a c.2% market share target of the substantial £700bn UK transferable
pensions market over the next 5-10 years.
We remain on track to further reduce Cost per Invested Customer, expecting to
achieve monthly Adjusted EBITDA profitability by the end of 2023 and ongoing
Adjusted EBITDA profitability for the full year 2024. We expect to achieve
long-term EBITDA margins in excess of 50%, driven by the scalability of our
technology platform. This is supported by the continued positive momentum in
our trading performance and growth in key metrics such as customer growth and
AUA.
We will continue to support the pursuit of healthy long-term returns for our
customers' pensions and the health of our environment, by promoting good
corporate behaviour. We will also continue to use our corporate voice to
amplify the voices of our customers across the UK, standing up for their
consumer rights, and enabling them to have better, more transparent pension
products.
We will continue to work tirelessly towards our mission to make pensions
simple so that everyone can look forward to a happy retirement.
Romi Savova
Chief Executive Officer
30 August 2023
Financial Review
We had a strong start to 2023 as we balanced our growth ambition with our firm
profitability target.
Our strong growth delivery over the first half of 2023 was underpinned by a
combination of new customer acquisition, asset growth from existing
customers((1)) and recovering global equity markets. Over the first half of
the year, Invested Customers grew by 33% to 211,000 (1H 2022: 159,000), Assets
under Administration ('AUA') increased by 38% to £3,704m (1H 2022: £2,676m)
and Revenue increased by 32% to £10.9m (1H 2022: £8.3m).
In addition to driving strong growth, we have remained firmly committed to
achieving our Adjusted EBITDA profitability target by the end of 2023. As a
result, we focused on delivering 32% Revenue growth over 1H 2023 while
reducing our cost base by 19% to £18.8m (1H 2022: £23.2m).
Summary Financial Highlights*
For the 6-month Period Ending
Jun-2023 Jun-2022 YoY
Revenue (£m) 10.9 8.3 32%
Money Manager Costs (£m) (1.6) (1.4) 13%
Technology Platform Costs & (10.3) (9.4) 10%
Other Operating Expenses (£m)((2,3))
Marketing Costs (£m) (6.8) (12.4) (45)%
Operating Costs (18.8) (23.2) (19)%
Adjusted EBITDA (£m)** (7.9) (14.9) 47%
Adjusted EBITDA Margin (% of Revenue)** (73)% (181)% 108 ppt
* See Definitions section.
** PensionBee's KPIs include alternative performance measures ('APMs'), which are
indicated with a double asterisk. APMs are not defined by International
Financial Reporting Standards ('IFRS') and should be considered together with
the Group's IFRS measurements of performance. PensionBee believes APMs assist
in providing greater insight into the underlying performance of PensionBee and
enhance comparability of information between reporting periods.
(1) Existing customers are defined as customers acquired from 2016 to 2022.
(2) Other Operating Expenses comprise Administrative Costs and auditor's
remuneration.
(3) Technology Platform & Other Costs comprise Employee Benefits Expense
(excluding Share-based Payment), technology and operations costs and Other
Operating Expenses.
Business Performance
Customers
As at Period End
Jun-2023 Jun-2022 YoY
Invested Customers ('IC') (thousands) 211 159 33%
Customer Retention Rate (% of IC) >95% >95% stable
We continued to invest in our growth over the first half of 2023 while
focusing on marketing efficiency. Over the first six months of the year, we
spent £6.8m in marketing (1H 2022: £12.4m) to acquire 28,000 (1H 2022:
41,000) new Invested Customers at a reduced Cost per Invested Customer.
Invested Customers increased to 211,000 (1H 2022: 159,000), representing an
increase of 33%.
The Customer Retention Rate remained above 95% (1H 2022: >95%), consistent
with our historical performance levels, reflecting trends in general consumer
behaviour around long-term saving products and importantly underscoring our
customers' continued satisfaction with the PensionBee product and customer
service proposition.
Assets under Administration
As at Period End/
For the 6-month Period Ending
Jun-2023 Jun-2022 YoY
Opening AUA (£m) 3,025 2,587 17%
Net Flows from New Customers (£m) 365 353 3%
Net Flows from Existing Customers (£m) 104 128 (19)%
Net Flows (£m) 469 481 (3)%
Pre-Market Impact AUA (£m) 3,494 3,069 14%
Market Movement and Other (£m) 210 (392) n/a
Closing AUA (£m) 3,704 2,676 38%
AUA Retention Rate (% of AUA) >95% >95% stable
During the first half of 2023, PensionBee continued to demonstrate strong
growth momentum. As at the end of June we recorded £3.7bn of AUA (1H 2022:
£2.7bn), an increase of 38% year-on-year. £678m of AUA was generated over
the first half of the year, surpassing last year's equivalent of £89m over
the same period. The key growth drivers were Net Flows from New Customers, Net
Flows from Existing Customers and Market Movement and Other.
Net Flows from New Customers represented the majority of AUA growth and
accounted for £365m of Net Flows (1H 2022: £353m). This strong growth was
achieved with a 45% reduction in marketing investment to £6.8m (1H 2022:
£12.4m) underscoring our household brand name status and the strength of our
data-led new customer acquisition capabilities.
Net Flows from Existing Customers further drove AUA growth as customers
continued to grow their pension savings with PensionBee. Net Flows from
Existing Customers reached £104m in the first six months of the year (1H
2022: £128m). Over the first half of the year, we saw slightly lower Net
Flows from Existing Customers compared to the same period last year which can
be attributed to younger customer acquisition in the prior year as well as
normalising outflow figures this year which reached levels we observed in
2021. PensionBee's commitment to continuous product development drives
engagement with our customer which is reflected in our Retention Rate of
>95% (1H 2022: >95%). Our in-app content and tools such as the state
pension calculator deliver useful insights to our customers.
As is customary in the industry, pensions are invested in capital markets and
therefore, the performance of the market is a driver of movements in AUA. As
markets regained some stability after a volatile period last year, we saw
market growth account for £210m of the overall AUA growth in the first half
of the year (1H 2022: £(392)m).
Financial Performance
Revenue
As at Period End/
For the 6-month Period Ending
Jun-2023 Jun-2022 YoY
Realised Revenue Margin 0.65% 0.63% +1.4bps
Revenue (£m) 10.9 8.3 32%
The Realised Revenue Margin improved to 0.65% (1H 2022: 0.63%) which was due
to a mix effect thanks to our recent launch of the Impact Plan priced at
0.95%.
Profitability Metrics
For the 6-month Period Ending
Jun-2023 Jun-2022 YoY
Profit/(Loss) before Tax (£m) (9.2) (16.9) 46%
Adjusted EBITDA (£m) (7.9) (14.9) 47%
Adjusted EBITDA Margin (% of Revenue) (73)% (181)% 108ppt
Our primary profitability metric is Adjusted EBITDA, which captures
Advertising and Marketing Expenses, but excludes Share-based Payments and
Transaction Costs.
We have a firm commitment to reach our monthly Adjusted EBITDA profitability
target by the end of 2023. As a result of strict cost discipline and strong
Revenue growth figures, we delivered an improvement of 108 percentage points
of our Adjusted EBITDA Margin to (73)% (1H 2022: (181)%). This places us in a
strong position to achieve our year end 2023 monthly Adjusted EBITDA
profitability target.
For the 6-month Period Ending
Jun-2023 Jun-2022 YoY
Money Manager Costs (£m) (1.6) (1.4) 13%
Employee Benefits Expense (excluding (6.1) (4.5) 34%
Share-based Payment) (£m)
Other Operating Expenses (£m) (4.3) (4.8) (12)%
Technology Platform Costs and Other Operating Expenses (£m) (10.3) (9.4) 10%
Money Manager Costs increased to £1.6m (1H 2022: £1.4m) at a lower rate than
Revenue growth, reflecting realised cost reductions.
Employee Benefits Expense increased to £6.1m (1H 2022: £4.5m), primarily
driven by a run-rate impact of the headcount increase in the second half of
2022. Headcount figures over the first half of 2023 remained relatively
unchanged. Overall, our total workforce increased to 209 as at 30 June 2023
from 208 at the end of 2022.((6))
Other Operating Expenses narrowed to £4.3m (1H 2022: £4.8m), reflecting the
scalability of our technology platform due to prior investments in
capabilities. We have continued to invest in enhancing our scalability with an
emphasis on improving our internal automation to support productivity,
including the streamlining of our provider processes. This is evidenced by an
improvement in the Invested Customers per Staff Member metric from 919 in the
first half of 2022 to 1,026 within the same period this year, demonstrating a
12% increase in productivity (1H 2022: 35%).((7))
(6) Total workforce of 209 as of 30 June 2023, includes 205 UK employees and
four non-UK contractors. Total workforce as of 31 December 2022 includes 204
UK employees and four non-UK contractors.
(7) Invested Customers per Staff Member calculated using LTM average for total
workforce. Management information as at 30 June 2023.
Marketing Costs
As at Period End/
For the 6-month Period Ending
Jun-2023 Jun-2022 YoY
Cost per Invested Customer (CPIC) (£) 247 260 (5)%
Marketing Costs (£m) (6.8) (12.4) (45)%
Thanks to our household brand name and data-led new customer acquisition
capabilities, we were able to deliver strong growth metrics with a marketing
budget that was reduced by 45% year-on-year to £6.8m (1H 2022: £12.4m). Cost
per Invested Customer numbers therefore improved to £247 per Invested
Customer for June 2023 compared to £260 per Invested Customer June 2022.
Other Costs
For the 6-month Period Ending
Jun-2023 Jun-2022 YoY
Share-based Payment (£m) (1.1) (1.1) (1)%
Transaction Costs (£m) - (0.7) (100)%
Taxation (£m) 0.1 0.2 (21)%
Share-based Payment costs remained stable during the period £(1.1)m (1H 2022:
£(1.1)m).
Transaction Costs There were no exceptional costs incurred in 1H 2023 nil (1H
2022: £(0.7)m). The costs outlined in the prior period are in relation to the
Company's transition to the Premium Segment of the Main Market of the London
Stock Exchange and primarily consisted of fees and expenses.
Finance Costs included fees associated with the capitalisation of lease
obligations in accordance with IFRS 16. There were no significant Finance
costs recorded nil (1H 2022: nil).
Taxation was enhanced tax credits in relation to routine Research and
Development refunds £0.1m (1H 2022: £0.2m). No deferred tax asset was
recognised for the carried forward losses.
Basic Earnings per Share
Basic (and Diluted) Earnings per Share was (4.06)p for 1H 2023 (1H 2022:
(7.54)p). This decreased in line with the increase in Loss after Tax.
Regulatory Capital and Financial Position
PensionBee Limited, a subsidiary of the Company, is authorised and regulated
by the Financial Conduct Authority and therefore adheres to capital
requirement set by the regulator. As of June 2023, the capital resources stood
at £12.8m as compared to a capital resource requirement of £1.4m, resulting
in a coverage of 9x.
As of June 2023, the cash and cash equivalents balance was £14m (1H 2022:
£29m).
Christoph J. Martin
Chief Financial Officer
30 August 2023
Responsibility Statement
We confirm that to the best of our knowledge:
● the condensed set of financial statements, prepared in accordance
with IAS 34 'Interim Financial Reporting', give a true and fair view of the
assets, liabilities, financial position and profit or loss of the group and
the undertakings included in the consolidation taken as a whole as required by
DTR 4.2.4R;
● the interim management reports includes a fair review of the
information required by DTR 4.2.7R (indication of important events and their
impact during the first six months and description of principal risks and
uncertainties for the remaining six months of the year); and
● the interim management report includes a fair review of the
information required by DTR 4.2.8R (disclosure of related parties'
transactions and changes therein).
By order of the Board.
Independent Review Report to PensionBee Group plc
Conclusion
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30
June 2023 which comprises the condensed interim consolidated statement of
comprehensive income, the condensed interim consolidated statement of
financial position, the condensed interim consolidated statement of changes in
equity, the condensed interim consolidated statement of cash flows and related
notes 1 to 15.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 June 2023 is not prepared, in all
material respects, in accordance with United Kingdom adopted International
Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of
the United Kingdom's Financial Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410 (Revised) "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" issued by the Financial
Reporting Council for use in the United Kingdom (ISRE (UK) 2410 (Revised)). A
review of interim financial information consists of making inquiries,
primarily of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. A review is substantially
less in scope than an audit conducted in accordance with International
Standards on Auditing (UK) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit opinion.
As disclosed in note 2, the annual financial statements of the group are
prepared in accordance with United Kingdom adopted international accounting
standards. The condensed set of financial statements included in this
half-yearly financial report has been prepared in accordance with United
Kingdom adopted International Accounting Standard 34, "Interim Financial
Reporting".
Conclusion Relating to Going Concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for Conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This Conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410 (Revised); however future events or conditions may cause the
entity to cease to continue as a going concern.
Responsibilities of the Directors
The directors are responsible for preparing the half-yearly financial report
in accordance with the Disclosure Guidance and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
In preparing the half-yearly financial report, the directors are responsible
for assessing the group's ability to continue as a going concern, disclosing
as applicable, matters related to going concern and using the going concern
basis of accounting unless the directors either intend to liquidate the
company or to cease operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the Review of the Financial Information
In reviewing the half-yearly financial report, we are responsible for
expressing to the company a conclusion on the condensed set of financial
statements in the half-yearly financial report. Our Conclusion, including our
Conclusion Relating to Going Concern, are based on procedures that are less
extensive than audit procedures, as described in the Basis for Conclusion
paragraph of this report.
Use of our Report
This report is made solely to the company in accordance with ISRE (UK) 2410
(Revised). Our work has been undertaken so that we might state to the company
those matters we are required to state to it in an independent review report
and for no other purpose. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the company, for our
review work, for this report, or for the conclusions we have formed.
Deloitte LLP
Statutory Auditor
Birmingham
United Kingdom
30 August 2023
Condensed Consolidated Statement of Comprehensive Income
For the Period from 1 January 2023 to 30 June 2023
Unaudited six months to 30 June 2023 Unaudited six months
to 30 June 2022
£ 000 £ 000
Note
Revenue 10,868 8,258
4
Employee Benefits Expense (6,090) (4,534)
(excluding Share-based
Payment)
Share-based (1,133) (1,148)
Payment
Depreciation (143) (139)
Expense
Advertising and Marketing (6,818) (12,357)
Other (5,875) (6,279)
Expenses
Listing - (687)
Costs
Operating Profit/(Loss) (9,191) (16,886)
Finance (19) (24)
Costs
Profit/(Loss) before Tax (9,210) (16,910)
Taxation 137 174
6
Profit/(Loss) for the Period (9,073) (16,736)
Total Comprehensive Profit/(Loss) for the Period wholly attributable to Equity (9,073) (16,736)
Holders of the Parent Company
Earnings per Share (pence per Share)
Basic and (4.06) (7.54)
Diluted
( )
The above results were derived from continuing operations.
Notes 1 to 15 form an integral part of these Condensed Consolidated Financial
Statements.
Condensed Consolidated Statement of Financial Position
As at 30 June 2023
Unaudited Audited
30 June 2023 31 December 2022
£ 000 £ 000
Note
Assets
Non-current Assets
Property, Plant and 309 358
Equipment
Right of Use 482 553
Assets
Financial Assets (Deposit) 125 -
916 911
Current Assets
Trade and Other 4,562 3,412
Receivables
8
Cash and Cash Equivalents 14,161 21,321
18,723 24,733
Total Assets 19,639 25,644
Equity and Liabilities
Equity
Share 223 223
Capital
9
Share 53,218 53,218
Premium
Share-based Payment 11,348 10,215
Reserve
Retained (49,197) (40,124)
Earnings
Total Equity 15,592 23,532
Non-current Liabilities
Lease 317 397
Liability
Provisions 48 46
365 443
Current Liabilities
Lease 159 154
Liability
Trade and Other 3,523 1,515
Payables
10
3,682 1,669
Total Liabilities 4,047 2,112
Total Equity and Liabilities 19,639 25,644
Notes 1 to 15 form an integral part of these Condensed Consolidated Financial
Statements.
Approved by the Board on 30 August 2023 and signed on its behalf by:
Christoph J. Martin
Chief Financial Officer
Condensed Consolidated Statement of Changes in Equity
For the Period from 1 January 2023 to 30 June 2023
Share Capital Share Premium Share-based Payment Reserve Retained Earnings Total
£ 000 £ 000 £ 000 £ 000 £ 000
At 1 January 2022 221 53,218 8,317 (17,976) 43,780
Profit/(Loss) for the Period - - - (16,736) (16,736)
Total Comprehensive Profit/(Loss) - - - (16,736) (16,736)
Share-based Payment Transactions - - 1,148 - 1,148
Exercise of Share Options 1 - - (1) -
At 30 June 2022 (unaudited) 222 53,218 9,465 (34,713) 28,192
At 1 January 2023 223 53,218 10,215 (40,124) 23,532
Profit/(Loss) for the Period - - - (9,073) (9,073)
Total Comprehensive Profit/(Loss) - - - (9,073) (9,073)
Share-based Payment Transactions - - 1,133 - 1,133
At 30 June 2023 (unaudited) 223 53,218 11,348 (49,197) 15,592
Notes 1 to 15 form an integral part of these Condensed Consolidated Financial
Statements.
Condensed Consolidated Statement of Cash Flows
For the Period from 1 January 2023 to 30 June 2023
Unaudited six months to 30 June 2023 Unaudited six months to 30 June 2022
£ 000 £ 000
Note
Cash Flows used in Operating Activities
Profit/(Loss) for the Period (9,073) (16,736)
Adjustments to Cash Flows from Non-Cash Items
Depreciation 143 139
Finance 19 24
Costs
Share-based Payment Transactions 1,133 1,148
Taxation (137) (174)
6
Operating Cash Flow before movements in Working Capital (7,915) (15,600)
Working Capital Adjustments
Increase in Trade and Other (1,485) (24)
Receivables
8
Increase in Trade and Other 2,008 1,212
Payables
10
Cash used in Operations (7,392) (14,412)
Taxes 348 194
Received
6
Net Cash Flow Used in Operating Activities (7,044) (14,218)
Cash Flows used in Investing Activities
Acquisition of (23) (161)
Equipment
Net Cash Flow used in Investing Activities (23) (161)
Cash Flows used in Financing Activities
Payment of Principal and Interest of Lease (93) -
Liabilities
Net Cash Flow Used in Financing Activities (93) -
Net Decrease in Cash and Cash Equivalents (7,160) (14,380)
Cash and Cash Equivalents at 1 January 21,321 43,518
Cash and Cash Equivalents at 30 June 14,161 29,138
Notes 1 to 15 form an integral part of these Condensed Consolidated Financial
Statements.
Notes to the Condensed Financial Statements
For the Period from 1 January 2023 to 30 June 2023
1. Corporate Information
The Condensed Consolidated Financial Statements of PensionBee Group plc (the
'Company') and its subsidiaries (together the 'Group') for the six months
ended 30 June 2023 were authorised for issue in accordance with a resolution
of the Directors on 30 August 2023.
PensionBee Group plc is a public limited company, whose shares are traded on
the Premium Segment of the Main Market of the London Stock Exchange ('LSE'),
incorporated and domiciled in England and Wales.
The address of its registered office is:
209 Blackfriars Road
London
SE1 8NL
United Kingdom
Principal Activity
The principal activity of the Group is that of a direct-to-consumer online
pension provider. The Group seeks to make its UK customers 'Pension Confident'
by giving them complete control and clarity over their retirement savings. The
Group helps its customers to combine their pensions into one new online plan
where they can contribute, forecast outcomes, invest effectively, and withdraw
their pensions (from the age of 55), all from the palm of their hand.
2. Accounting Policies
Basis of Preparation
The Annual Financial Statements of PensionBee Group plc will be prepared in
accordance with United Kingdom adopted International Financial Reporting
Standards. The condensed set of financial statements included in this
half-yearly financial report has been prepared in accordance with United
Kingdom adopted International Accounting Standard 34 'Interim Financial
Reporting'. The Group has prepared the Condensed Consolidated Financial
Statements on the basis that it will continue to operate as a going concern.
The Directors consider that there are no material uncertainties that may cast
significant doubt over this assumption. The Directors are satisfied that the
Group has sufficient resources to continue in operation for the foreseeable
future, a period of not less than 12 months from the date of this report.
The Condensed Consolidated Financial Statements do not include all the
information and disclosures required in the Annual Financial Statements, and
should be read in conjunction with PensionBee Group's Annual Report and
Financial Statements 2022.
Summary of Significant Accounting Policies
The principal accounting policies applied in the preparation of these
financial statements are set out below. These policies have been consistently
applied to all the years presented and the interim period policies
consistently comply with International Accounting Standard 34 'Interim
Financial Reporting', unless otherwise stated.
Audit Requirements
The financial information for the six months ended 30 June 2023 has not been
audited by Deloitte LLP and accordingly no opinion has been given. The
comparative financial information for the year ended 31 December 2022 has been
extracted from the Annual Report and Financial Statements 2022. The financial
information contained in this Interim Report does not constitute statutory
accounts as defined in section 435 of the Companies Act 2006 and does not
reflect all of the information contained in PensionBee Group plc's Annual
Report and Financial Statements 2022. The Annual Financial Statements for the
year ended 31 December 2022, which were approved by the Board of Directors on
15 March 2023, received an unqualified audit report, did not contain a
statement under section 498 (2) or (3) of the Companies Act 2006 and have been
filed with the Registrar of Companies.
Changes in Accounting Policy
None of the standards, interpretations and amendments effective for the first
time from 1 January 2023 have had a material effect on the Condensed
Consolidated Financial Statements.
3. Critical Accounting Judgements and Key Sources of Estimation Uncertainty
In the application of the Group's accounting policies, the Directors are
required to make judgements, estimates and assumptions about the carrying
amount of assets and liabilities that are not readily apparent from other
sources. The estimates and associated assumptions are based on historical
experience and other factors that are considered to be relevant. Actual
results may differ from these estimates. The estimates and underlying
assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised where
the revision affects only that period, or in the period of the revision and
future periods where the revision affects both current and future periods.
The Group does not have any critical accounting judgements or key estimation
uncertainties.
4. Revenue
The analysis of the Group's Revenue for the period from continuing operations
is as follows:
Unaudited Unaudited
six months to six months to
30 June 2023 30 June 2022
£ 000 £ 000
Recurring Revenue 10,825 8,187
Other Revenue 43 71
10,868 8,258
5. Segment Information
Operating segments and reporting segments are reported in a manner consistent
with the internal reporting provided to the Chief Operating Decision Maker
('CODM'). The Group considers that the role of CODM is performed by the Board
of Directors. The CODM regularly reviews the Group's operating results to
assess performance and to allocate resources. All earnings, balance sheet and
cash flow information received and reviewed by the Board of Directors is
prepared at a company level. The CODM considers that it has a single business
unit comprising the provision of direct-to-consumer online pension
consolidation. The CODM therefore recognises one operating and reporting
segment with all revenue, losses before tax and net assets attributable to
this single reportable business segment.
Further, the Group operates in a single geographical location only, being the
United Kingdom.
6. Tax
Tax credited in the Condensed Consolidated Statement of Comprehensive Income:
Unaudited Unaudited
six months to six months to
30 June 2023 30 June 2022
£ 000 £ 000
Current Taxation
UK Corporation Tax 137 174
Tax Credit in the Condensed Consolidated Statement of Comprehensive Income 137 174
The Tax Credit in the Condensed Consolidated Statement of Comprehensive Income
relates solely to enhanced tax credits in relation to Research and
Development.
7. Earnings per Share
Basic Earnings per Share is calculated by dividing the loss attributable to
ordinary equity holders of the Parent Company by the weighted average number
of ordinary shares in issue during the period.
Diluted Earnings per Share is calculated by dividing the Loss Attributable to
Ordinary Equity Holders of the Parent Company by the weighted average number
of ordinary shares in issue during the period. The weighted average number of
ordinary shares in issue during the period has not been adjusted for the
effect of the weighted average number of shares that would be issued on the
conversion of all the potential ordinary shares under option because the
potential ordinary shares are anti-dilutive. At each balance sheet date
reported below, the following potential ordinary shares under option are
anti-dilutive and are therefore excluded from the weighted average number of
ordinary shares for the purpose of Diluted Earnings per Share.
Unaudited Unaudited
six months to 30 June 2023 six months to
30 June 2022
Number of Potential Ordinary Shares 6,778,659 5,100,186
Loss Attributable to Ordinary Equity Holders of PensionBee Group plc (£) (9,073,000) (16,736,000)
Weighted Average Number of Shares Outstanding during the Period 223,203,539 221,859,518
Basic and Diluted Earnings/(Loss) per Share (pence per Share) (4.06) (7.54)
8. Trade and Other Receivables
Unaudited Audited
30 June 2023 31 December 2022
£ 000 £ 000
Trade Receivables 1,859 1,565
Prepayments 2,167 903
Other Receivables 536 944
4,562 3,412
9. Share Capital
Allotted, Called Up and Fully Paid Shares
Unaudited 30 June 2023 Audited 31 December 2022
No. 000 £ 000 No. 000 £ 000
Ordinary of £0.001 each 223,852 223 222,862 223
223,852 223 222,862 223
10. Trade and Other Payables
Unaudited Audited
30 June 2023 31 December 2022
£ 000 £ 000
Trade Payables 363 132
Accrued Expenses 2,856 1,301
Other Payables 304 83
3,523 1,515
11. Financial Assets and Financial Liabilities
The carrying value of the financial assets and liabilities are not materially
different from their fair value.
12. Share-based Payment
PensionBee EMI and Non-EMI Share Option Scheme
Scheme Details and Movements
Under the PensionBee EMI and Non-EMI Share Option Scheme, share options were
granted to eligible employees who have passed their probation period at the
Group. The exercise price of all share options is £0.001 per share.
The share options normally vest on the later of the following tranches, 25% of
the shares vest on the first anniversary of the vesting commencement date with
the remaining 75% of the shares vesting quarterly in equal instalments over
the following three years.
The fair value of the share options granted is estimated on the date of grant
by reference to the prevailing share price. Before the Company was listed in
2021, the fair value was determined by reference to the price paid by external
investors as part of periodic funding rounds.
No share options were granted during the six months ended 30 June 2023 (30
June 2022: nil).
Total number of share options exercised during the six months ended 30 June
2023 is 803,368 (30 June 2022: 878,446) and the weighted average remaining
contractual life is one year (30 June 2022: two years).
Deferred Share Bonus Plan
Scheme Details and Movements
Under the PensionBee Deferred Share Bonus Plan ('DSBP'), awards are granted to
eligible employees who are or were an employee (including an Executive
Director) of the Group and have been granted a bonus. DSBP awards are granted
at the end of the financial year once the annual bonus outturn has been
determined. The exercise price of all DSBP awards is £0.001 per award.
For the two Executive Directors that were in office as at 31 December 2021
their 2022 granted DSBP awards cliff vest on the third anniversary of the date
of grant. For the rest of the employees and the subsequent grants, DSBP awards
vest in three equal tranches over a service period of three years from grant
date. DSBP awards vest upon satisfying the service condition.
The fair value of the DSBP awards is the share price on grant date. DSBP
awards can be exercised to the extent they have vested.
626,223 awards were granted during the six months ended 30 June 2023 (30 June
2022: 944,508). The weighted average fair value of awards granted during the
six months ended 30 June 2023 was £0.98 (30 June 2022: £1.44).
Total number of awards exercised during the six months ended 30 June 2023 was
186,806 (30 June 2022: nil) and the weighted average remaining contractual
life is one year and five months (30 June 2022: one year and eleven months).
Long Term Incentives
Scheme Details and Movements
Under the PensionBee Long Term Incentives ('LTI'), awards are granted to
eligible employees who are, or were, employees (including an Executive
Director) of the Group, at mid-level management or higher, and have been
granted a bonus. LTI awards are granted in the subsequent year following a
bonus grant. The exercise price of all LTI awards is £0.001 per award.
The awards vest in tranches, a third of the awards vest on the third
anniversary, a third on the fourth anniversary and the last third on the fifth
anniversary of the vesting commencement date.
The fair value of the LTI awards is the share price on grant date discounted
for restricted selling period. LTI awards can be exercised to the extent they
have vested.
2,791,756 awards were granted during the six months ended 30 June 2023 (30
June 2022: 1,311,681). The weighted average fair value of awards granted
during the six months ended 30 June 2023 was £0.94 (30 June 2022: £1.38).
Total number of awards exercised during the six months ended 30 June 2022 was
nil (30 June 2021: nil) and the weighted average remaining contractual life is
three years and five months (30 June 2022: three years and nine months).
Charge/Credit arising from Share-based Payment
The total charge during the six months ended 30 June 2023 for the Share-based
Payment was £1,133,000 (30 June 2022: £1,148,000), all of which related to
equity-settled share-based payment transactions.
13. Principal Risks and Uncertainties
The Board continually reviews the principal risks and uncertainties facing the
Group that could pose a threat to the delivery of the strategic objectives.
The Board believes that the nature of the principal risks and uncertainties
that may have a material effect on the Group's performance over the remainder
of the financial year remain unchanged from those presented within the Annual
Report and Financial Statements 2022.
14. Related Party Transactions
Related Party - PensionBee Trustees Limited
The following related party transactions occurred between PensionBee and
PensionBee Trustees Limited:
(i) Payment of the PensionBee Trustees Limited bank fees on a
quarterly basis. During the six months to 30 June 2023, bank fees amounted to
£73,500 (30 June 2022: £44,500). There was no outstanding balance as at 30
June 2023 (30 June 2022: £nil).
(ii) Payment of the PensionBee Trustees Limited's Data Protection fee
on an annual basis. During the six months to 30 June 2023, payments amounted
to £35 (30 June 2022: £35). There was no outstanding balance as at 30 June
2023 (30 June 2022: £nil).
Transactions with Directors
There were no transactions with Directors during the six months ended 30 June
2023 (30 June 2022: £nil). During the year ended 31 December 2022, Mark Wood
repaid £105,279 to the Subsidiary in respect of a payment to HMRC made by the
Group on his behalf in 2021. As at 30 June 2023 there was no outstanding
balance (30 June 2022: £105,279).
15. Events After the Reporting Period
There were no events of material impact to the financial statements that
occurred after the reporting date.
16. Alternative Performance Measures
The Group uses a variety of alternative performance measures ('APM's') which
are not defined or specified by IFRS, in particular Adjusted Earnings Before
Interest, Taxes, Depreciation and Amortisation ('EBITDA'). The Directors use a
combination of APMs and IFRS measures when reviewing the performance and
position of the Group and believe that each of these measures provides useful
information with respect to the Group's business and operations. The Directors
consider that these APMs illustrate the underlying performance of the business
by excluding items considered by management not to be reflective of the
underlying trading operations of the Group.
The APMs used by the Group are defined below and reconciled to the related
IFRS financial measures:
Adjusted EBITDA
Adjusted EBITDA represents loss for the year before taxation, finance costs,
depreciation, share based compensation and listing costs.
Unaudited six months to Unaudited
30 June 2023 six months to
30 June 2022
£ 000 £ 000
Operating Loss (9,191) (16,886)
Depreciation Expense 143 139
Share-based Payment (1) 1,133 1,148
Listing Costs (2) - 687
Adjusted EBITDA (7,915) (14,912)
(1) Relates to the total annual charge in relation to the Share-based Payment
expense as detailed in Note 12 to the Condensed Consolidated Financial
Statements.
(2) Relates to expenses incurred in relation to preparation for admission to
the London Stock Exchange.
5. Segment Information
Operating segments and reporting segments are reported in a manner consistent
with the internal reporting provided to the Chief Operating Decision Maker
('CODM'). The Group considers that the role of CODM is performed by the Board
of Directors. The CODM regularly reviews the Group's operating results to
assess performance and to allocate resources. All earnings, balance sheet and
cash flow information received and reviewed by the Board of Directors is
prepared at a company level. The CODM considers that it has a single business
unit comprising the provision of direct-to-consumer online pension
consolidation. The CODM therefore recognises one operating and reporting
segment with all revenue, losses before tax and net assets attributable to
this single reportable business segment.
Further, the Group operates in a single geographical location only, being the
United Kingdom.
6. Tax
Tax credited in the Condensed Consolidated Statement of Comprehensive Income:
Unaudited Unaudited
six months to six months to
30 June 2023 30 June 2022
£ 000 £ 000
Current Taxation
UK Corporation Tax 137 174
Tax Credit in the Condensed Consolidated Statement of Comprehensive Income 137 174
The Tax Credit in the Condensed Consolidated Statement of Comprehensive Income
relates solely to enhanced tax credits in relation to Research and
Development.
7. Earnings per Share
Basic Earnings per Share is calculated by dividing the loss attributable to
ordinary equity holders of the Parent Company by the weighted average number
of ordinary shares in issue during the period.
Diluted Earnings per Share is calculated by dividing the Loss Attributable to
Ordinary Equity Holders of the Parent Company by the weighted average number
of ordinary shares in issue during the period. The weighted average number of
ordinary shares in issue during the period has not been adjusted for the
effect of the weighted average number of shares that would be issued on the
conversion of all the potential ordinary shares under option because the
potential ordinary shares are anti-dilutive. At each balance sheet date
reported below, the following potential ordinary shares under option are
anti-dilutive and are therefore excluded from the weighted average number of
ordinary shares for the purpose of Diluted Earnings per Share.
Unaudited Unaudited
six months to 30 June 2023 six months to
30 June 2022
Number of Potential Ordinary Shares 6,778,659 5,100,186
Loss Attributable to Ordinary Equity Holders of PensionBee Group plc (£) (9,073,000) (16,736,000)
Weighted Average Number of Shares Outstanding during the Period 223,203,539 221,859,518
Basic and Diluted Earnings/(Loss) per Share (pence per Share) (4.06) (7.54)
8. Trade and Other Receivables
Unaudited Audited
30 June 2023 31 December 2022
£ 000 £ 000
Trade Receivables 1,859 1,565
Prepayments 2,167 903
Other Receivables 536 944
4,562 3,412
9. Share Capital
Allotted, Called Up and Fully Paid Shares
Unaudited 30 June 2023 Audited 31 December 2022
No. 000 £ 000 No. 000 £ 000
Ordinary of £0.001 each 223,852 223 222,862 223
223,852 223 222,862 223
10. Trade and Other Payables
Unaudited Audited
30 June 2023 31 December 2022
£ 000 £ 000
Trade Payables 363 132
Accrued Expenses 2,856 1,301
Other Payables 304 83
3,523 1,515
11. Financial Assets and Financial Liabilities
The carrying value of the financial assets and liabilities are not materially
different from their fair value.
12. Share-based Payment
PensionBee EMI and Non-EMI Share Option Scheme
Scheme Details and Movements
Under the PensionBee EMI and Non-EMI Share Option Scheme, share options were
granted to eligible employees who have passed their probation period at the
Group. The exercise price of all share options is £0.001 per share.
The share options normally vest on the later of the following tranches, 25% of
the shares vest on the first anniversary of the vesting commencement date with
the remaining 75% of the shares vesting quarterly in equal instalments over
the following three years.
The fair value of the share options granted is estimated on the date of grant
by reference to the prevailing share price. Before the Company was listed in
2021, the fair value was determined by reference to the price paid by external
investors as part of periodic funding rounds.
No share options were granted during the six months ended 30 June 2023 (30
June 2022: nil).
Total number of share options exercised during the six months ended 30 June
2023 is 803,368 (30 June 2022: 878,446) and the weighted average remaining
contractual life is one year (30 June 2022: two years).
Deferred Share Bonus Plan
Scheme Details and Movements
Under the PensionBee Deferred Share Bonus Plan ('DSBP'), awards are granted to
eligible employees who are or were an employee (including an Executive
Director) of the Group and have been granted a bonus. DSBP awards are granted
at the end of the financial year once the annual bonus outturn has been
determined. The exercise price of all DSBP awards is £0.001 per award.
For the two Executive Directors that were in office as at 31 December 2021
their 2022 granted DSBP awards cliff vest on the third anniversary of the date
of grant. For the rest of the employees and the subsequent grants, DSBP awards
vest in three equal tranches over a service period of three years from grant
date. DSBP awards vest upon satisfying the service condition.
The fair value of the DSBP awards is the share price on grant date. DSBP
awards can be exercised to the extent they have vested.
626,223 awards were granted during the six months ended 30 June 2023 (30 June
2022: 944,508). The weighted average fair value of awards granted during the
six months ended 30 June 2023 was £0.98 (30 June 2022: £1.44).
Total number of awards exercised during the six months ended 30 June 2023 was
186,806 (30 June 2022: nil) and the weighted average remaining contractual
life is one year and five months (30 June 2022: one year and eleven months).
Long Term Incentives
Scheme Details and Movements
Under the PensionBee Long Term Incentives ('LTI'), awards are granted to
eligible employees who are, or were, employees (including an Executive
Director) of the Group, at mid-level management or higher, and have been
granted a bonus. LTI awards are granted in the subsequent year following a
bonus grant. The exercise price of all LTI awards is £0.001 per award.
The awards vest in tranches, a third of the awards vest on the third
anniversary, a third on the fourth anniversary and the last third on the fifth
anniversary of the vesting commencement date.
The fair value of the LTI awards is the share price on grant date discounted
for restricted selling period. LTI awards can be exercised to the extent they
have vested.
2,791,756 awards were granted during the six months ended 30 June 2023 (30
June 2022: 1,311,681). The weighted average fair value of awards granted
during the six months ended 30 June 2023 was £0.94 (30 June 2022: £1.38).
Total number of awards exercised during the six months ended 30 June 2022 was
nil (30 June 2021: nil) and the weighted average remaining contractual life is
three years and five months (30 June 2022: three years and nine months).
Charge/Credit arising from Share-based Payment
The total charge during the six months ended 30 June 2023 for the Share-based
Payment was £1,133,000 (30 June 2022: £1,148,000), all of which related to
equity-settled share-based payment transactions.
13. Principal Risks and Uncertainties
The Board continually reviews the principal risks and uncertainties facing the
Group that could pose a threat to the delivery of the strategic objectives.
The Board believes that the nature of the principal risks and uncertainties
that may have a material effect on the Group's performance over the remainder
of the financial year remain unchanged from those presented within the Annual
Report and Financial Statements 2022.
14. Related Party Transactions
Related Party - PensionBee Trustees Limited
The following related party transactions occurred between PensionBee and
PensionBee Trustees Limited:
(i) Payment of the PensionBee Trustees Limited bank fees on a
quarterly basis. During the six months to 30 June 2023, bank fees amounted to
£73,500 (30 June 2022: £44,500). There was no outstanding balance as at 30
June 2023 (30 June 2022: £nil).
(ii) Payment of the PensionBee Trustees Limited's Data Protection fee
on an annual basis. During the six months to 30 June 2023, payments amounted
to £35 (30 June 2022: £35). There was no outstanding balance as at 30 June
2023 (30 June 2022: £nil).
Transactions with Directors
There were no transactions with Directors during the six months ended 30 June
2023 (30 June 2022: £nil). During the year ended 31 December 2022, Mark Wood
repaid £105,279 to the Subsidiary in respect of a payment to HMRC made by the
Group on his behalf in 2021. As at 30 June 2023 there was no outstanding
balance (30 June 2022: £105,279).
15. Events After the Reporting Period
There were no events of material impact to the financial statements that
occurred after the reporting date.
16. Alternative Performance Measures
The Group uses a variety of alternative performance measures ('APM's') which
are not defined or specified by IFRS, in particular Adjusted Earnings Before
Interest, Taxes, Depreciation and Amortisation ('EBITDA'). The Directors use a
combination of APMs and IFRS measures when reviewing the performance and
position of the Group and believe that each of these measures provides useful
information with respect to the Group's business and operations. The Directors
consider that these APMs illustrate the underlying performance of the business
by excluding items considered by management not to be reflective of the
underlying trading operations of the Group.
The APMs used by the Group are defined below and reconciled to the related
IFRS financial measures:
Adjusted EBITDA
Adjusted EBITDA represents loss for the year before taxation, finance costs,
depreciation, share based compensation and listing costs.
Unaudited six months to Unaudited
30 June 2023 six months to
30 June 2022
£ 000 £ 000
Operating Loss (9,191) (16,886)
Depreciation Expense 143 139
Share-based Payment (1) 1,133 1,148
Listing Costs (2) - 687
Adjusted EBITDA (7,915) (14,912)
(1) Relates to the total annual charge in relation to the Share-based Payment
expense as detailed in Note 12 to the Condensed Consolidated Financial
Statements.
(2) Relates to expenses incurred in relation to preparation for admission to
the London Stock Exchange.
Definitions
Financial Performance Measures
Revenue Revenue means the income generated from the asset base of PensionBee's
customers, essentially annual management fees charged on the AUA, together
with a minor revenue contribution from other services.
Profit/(Loss) before Tax ('PBT') Profit/(Loss) before Tax is a measure that looks at PensionBee's profit or
losses before it has paid corporate income tax.
Adjusted EBITDA* Adjusted EBITDA is the operating profit or loss before taxation, finance
costs, depreciation, share-based compensation and listing costs. This measure
is a proxy for operating cash flow.
Adjusted EBITDA Margin* Adjusted EBITDA Margin means Adjusted EBITDA as a percentage of Revenue for
the relevant period.
Basic Earnings per Share ('EPS') Basic Earnings per Share is calculated by dividing the profit or loss
attributable to ordinary equity holders of the Group by the weighted average
number of ordinary shares in issue during the period.
* PensionBee's Key Performance Indicators include alternative performance
measures ('APM's), which are indicated with an asterix. APMs are not defined
by International Financial Reporting Standards ('IFRS') and should be
considered together with the Group's IFRS measurements of performance.
PensionBee believes APMs assist in providing additional insight into the
underlying performance of PensionBee and aid comparability of information
between reporting periods. A reconciliation to the nearest IFRS number is
provided in Note 16 of the Condensed Consolidated Financial Statements
'Alternative Performance Measures'.
Non-Financial Performance Measures
Assets under Administration ('AUA') Assets under Administration is the total invested value of pension assets
within PensionBee's Invested Customers' pensions. It measures the new inflows
less the outflows and records a change in the market value of the assets. This
KPI has been selected because AUA is a measurement of the growth of the
business and is the primary driver of Revenue.
AUA Retention Rate (% of AUA) AUA Retention measures the percentage of retained PensionBee AUA from
transfers out over the average of the trailing twelve months. High AUA
retention provides more certainty of future Revenue. This measure can also be
used to monitor customer satisfaction.
Invested Customers ('IC') Invested Customers means those customers who have transferred pension assets
or made contributions into one of PensionBee's investment plans.
Customer Retention Rate Customer Retention Rate measures the percentage of retained PensionBee
Invested Customers over the average of the trailing twelve months. High
(% of IC) customer retention provides more certainty of future Revenue. This measure can
also be used to monitor customer satisfaction.
Cost per IC ('CPIC') Cost per Invested Customer means the cumulative advertising and marketing
costs incurred since PensionBee commenced operations up until the relevant
point in time divided by the cumulative number of Invested Customers at that
point in time. This measure monitors cost discipline of customer acquisition.
PensionBee's desired CPIC threshold is £200-£250.
Net Flows Net Flows measures the cumulative inflow of PensionBee AUA from consolidation
and contribution ('Gross Inflows'), less the outflows from withdrawals and
transfers out ('Gross Outflows') over the relevant period.
Realised Revenue Margin (% of AUA) Realised Revenue Margin expresses the Recurring Revenue over the average
quarterly AUA held in PensionBee's investment plans over the period.
Company Information
PensionBee Executive Directors
Romi Savova (Chief Executive Officer)
Jonathan Lister Parsons (Chief Technology Officer)
Christoph J. Martin (Chief Financial Officer)
PensionBee Non-Executive Directors
Mark Wood CBE (Non-Executive Chair)
Mary Francis CBE (Senior Independent Non-Executive Director)
Michelle Cracknell CBE (Independent Non-Executive Director)
Lara Oyesanya FRSA (Independent Non-Executive Director)
Company Secretary
Michael Tavener
Registered Number
13172844
Registered Office
209 Blackfriars Road
London
SE1 8NL
United Kingdom
Auditor
Deloitte LLP
4 Brindley Place
Birmingham
B1 2HZ
United Kingdom
* PensionBee's Key Performance Indicators include alternative performance
measures ('APM's), which are indicated with an asterix. APMs are not defined
by International Financial Reporting Standards ('IFRS') and should be
considered together with the Group's IFRS measurements of performance.
PensionBee believes APMs assist in providing additional insight into the
underlying performance of PensionBee and aid comparability of information
between reporting periods. A reconciliation to the nearest IFRS number is
provided in Note 16 of the Condensed Consolidated Financial Statements
'Alternative Performance Measures'.
Non-Financial Performance Measures
Assets under Administration ('AUA') Assets under Administration is the total invested value of pension assets
within PensionBee's Invested Customers' pensions. It measures the new inflows
less the outflows and records a change in the market value of the assets. This
KPI has been selected because AUA is a measurement of the growth of the
business and is the primary driver of Revenue.
AUA Retention Rate (% of AUA) AUA Retention measures the percentage of retained PensionBee AUA from
transfers out over the average of the trailing twelve months. High AUA
retention provides more certainty of future Revenue. This measure can also be
used to monitor customer satisfaction.
Invested Customers ('IC') Invested Customers means those customers who have transferred pension assets
or made contributions into one of PensionBee's investment plans.
Customer Retention Rate Customer Retention Rate measures the percentage of retained PensionBee
Invested Customers over the average of the trailing twelve months. High
(% of IC) customer retention provides more certainty of future Revenue. This measure can
also be used to monitor customer satisfaction.
Cost per IC ('CPIC') Cost per Invested Customer means the cumulative advertising and marketing
costs incurred since PensionBee commenced operations up until the relevant
point in time divided by the cumulative number of Invested Customers at that
point in time. This measure monitors cost discipline of customer acquisition.
PensionBee's desired CPIC threshold is £200-£250.
Net Flows Net Flows measures the cumulative inflow of PensionBee AUA from consolidation
and contribution ('Gross Inflows'), less the outflows from withdrawals and
transfers out ('Gross Outflows') over the relevant period.
Realised Revenue Margin (% of AUA) Realised Revenue Margin expresses the Recurring Revenue over the average
quarterly AUA held in PensionBee's investment plans over the period.
Company Information
PensionBee Executive Directors
Romi Savova (Chief Executive Officer)
Jonathan Lister Parsons (Chief Technology Officer)
Christoph J. Martin (Chief Financial Officer)
PensionBee Non-Executive Directors
Mark Wood CBE (Non-Executive Chair)
Mary Francis CBE (Senior Independent Non-Executive Director)
Michelle Cracknell CBE (Independent Non-Executive Director)
Lara Oyesanya FRSA (Independent Non-Executive Director)
Company Secretary
Michael Tavener
Registered Number
13172844
Registered Office
209 Blackfriars Road
London
SE1 8NL
United Kingdom
Auditor
Deloitte LLP
4 Brindley Place
Birmingham
B1 2HZ
United Kingdom
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