REG - Mode Global Holdings - Annual Report 2021

R8 Capital InvestmentsAnnouncement

28/06/2022 07:01

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220628:nRSb3661Qa&default-theme=true

RNS Number : 3661Q  Mode Global Holdings PLC  28 June 2022

Mode Global Holdings reports full year 2021 financial results

●     Firm reports 261% increase in user base

●     732% volume increase in trading activity

●     192% increase in revenue

 

London, June 27, 2022 - Mode Global Holdings PLC (LSE: MODE), the LSE-listed
Fintech Group, has today released its full year financial results for 2021.

The firm entered 2021 with a clear focus on building and enhancing its product
set, whilst also increasing its user base, which it achieved successfully.
Users grew by 261% over the 12 months, with 70% of trading customers being
repeat buyers. Trading volume increased by 732% compared to the same period in
2020. On average, Mode customers had a trading volume of £2,995, and an
average Bitcoin balance of £1,330.

Following its successful listing on the London Stock Exchange in 2020, and
round of share placing in 2021, the resulting strong cash reserves allowed the
Group to accelerate ambitious development plans, including the launch of a
first of its kind QR code payment solution and the Bitcoin Cashback loyalty
and rewards programme. The firm also increased its Bitcoin Treasury holding,
keeping it on its balance sheet to protect against currency debasement.

In 2022, Mode will look to increase the app's user base and grow revenue, as
it seeks to offer services to people at all levels of the crypto spectrum,
from crypto curious to crypto native. In preparation for 2022's growth, Mode
has extensively expanded and developed its risk management framework.

In addition, Mode has received irrevocable commitments from new and existing
investors to subscribe for £1,935,000 of convertible loan notes. The loan
notes, which carry a coupon of 8%, are convertible into Mode's Ordinary
Shares.

Rita Liu, Mode CEO comments: "2021 was a big year for Mode. Our aim was to
grow our user base and give them the products they want. Put simply, we
achieved what we set out to do.

Mode is a rarity on the LSE - a crypto-driven fintech which has obtained
regulatory oversight via EMI and FCA registration. Those accreditations
demonstrate that we are leading the way in the UK's digital asset industry.
The prudent and sustainable approach we have adopted from day one will also
help the firm navigate current market volatility, thanks to our strong risk
management framework. Clearly 2021 has been a year of innovation, development
and growth and we will continue to build on this momentum in 2022."

Jonathan Rowland, Mode Global Holdings Chairman adds: "These results are very
pleasing. The focus in 2021 was on product development and growth. The
delivery of these ambitious growth plans did see operating costs increase in
2021. A combination of hiring more talent and costs associated with
advertising and the listing saw these go up as we anticipated they would.

However, the revenue increases we are reporting are a clear indicator that our
proposition is a compelling one. In addition, our successful oversubscribed
convertible loan also shows that despite recent market volatility in crypto
and tech, Mode continues to attract strong interest from the investor
community. Mode is uniquely positioned to lead the next wave of crypto
adoption and evolution and as a business we are primed for fast future growth
in 2022 and beyond."

2021 financial summary:

●     Revenue jumped from £450k in 2020 to £1,313k in 2021

●     Administrative costs increased by £5,864k due to higher people
costs (£4,161k) and share option expenses (743k)

●     Advertising spend increased from £188k in 2020 to £1,394k in
2021 to help drive revenue growth

 

Business highlights:

●     FCA registration and EMI licence

●     Successful share placement

●     Users grew by 261% over the 12 months

●     70% of trading customers are repeat buyers.

●     On average, customers had a trading volume of £2,995, and an
average Bitcoin balance of £1,330.

●     QR-code payments solution launched

●     Bitcoin Cashback and loyalty programme launched

●     Bitcoin Payroll product launched

 

The Annual Report & Accounts will shortly be available to download from
the Company's website at
https://www.modeplc.com/investors/results-reports-presentations

These documents have also been submitted to the National Storage Mechanism and
will shortly be available for inspection at:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism.

 

-ENDS-

 

 

 

 

Press contacts:

Fiona McAra, MRM

+44 (0)7471 350286

mode@mrm-london.com

 

Julie Sand, Mode Global Holdings PLC

+44 (20) 3773 0588

julie.sand@modeapp.com

 

Notes to Editors

 

About Mode:

Mode is an LSE-listed fintech company on a mission to build the world's most
disruptive ecosystem where exchanging value and growing wealth is seamless for
all. Mode is leveraging the power of Bitcoin and Open Banking to deliver on
this mission and offer customers in the UK a one-stop app to shop, earn and
grow their Bitcoin, all in one place. For businesses, Mode provides a cheaper,
safer and smarter alternative to card payments that rewards shoppers with
Bitcoin Cashback.

To learn more, visit our customer/business site at www.modeapp.com or our
investor site at www.modeplc.com.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  ACSPPUCAQUPPGQM