REG - StreaksAI PLC - Annual results

StreaksaiAnnouncement

28/06/2024 07:00

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RNS Number : 2441U  StreaksAI PLC  28 June 2024

Press Release

 

This announcement contains information which, prior to its disclosure, was
inside information as stipulated under Regulation 11 of the Market Abuse
(Amendment) (EU Exit) Regulations 2019/310 (as amended). Upon the publication
of this announcement via a Regulatory Information Service, this inside
information is now considered to be in the public domain.

 

 

28 June 2024

 

 

 

StreaksAI PLC

 

("StreaksAI" or "the Company")

 

Annual results

 

 

StreaksAI PLC (LSE: STK), a UK-based generative AI platform, announces its
audited results for the 12 months ended 29 February 2024. The full audited
financial statements will be uploaded to the Company website: www.streaks.ai
(http://www.streaks.ai) .

 

The Directors of StreaksAI take responsibility for this announcement.

 

For further information please contact:

 

 StreaksAI PLC
 Mike Edwards                          via First Sentinel (Corporate Advisor)

 Interim CEO                           +44 20 3855 5551 

  
 Financial Adviser
 Brian Stockbridge (First Sentinel)    +44 20 3855 5551

  

 

About Streaks:

StreaksAI PLC is a provider of AI based conversational technologies. The
Company offers two core products in the gaming and conversational AI space.

 

For more information on the Conversational Gaming AI product, please visit
www.playstreaks.com.

 

For more information on the Conversational AI product, please visit
www.streaks.ai

 

 

Chairman's Report

The Company is an AI-focused, full-stack technology company involved in every
aspect from training the language models to constructing the user interface.
Given the nature of the fast moving Artificial Intelligence sector, it must
quickly adapt to market changes. As such, the Company identified an
opportunity to utilise its technology to develop interactive, customisable
"chatbots" and launched this product during the financial period. The chatbots
are free for limited use and are available at a subscription for wider use.
This change in direction of the Company was reflected in the change of
registered company name from Streaks Gaming Plc to StreaksAI Plc on the 4(th)
July 2023.

In addition, this technology is suitable for B2B applications and the Company
is working on the development of products to fit into the music management,
sports management and celebrity sectors to enable them to increase fan
interaction and engagement.

 

Mr M Edwards

Non-Executive Chairman

 

Strategic Report

Principal activity

The Company's principal activity is that of a global AI-focused software
development company, led by a team experienced in this sector and in the
development of technology businesses. It is based in UK and its shares are
listed on the main market of the London Stock Exchange (ticker:STK) .

Review of the business

Streaks Social is live and allows users to use and customise chatbots for
their own experiences. This is free to use in a limited way and greater
functionality is available at a subscription.

In addition, the creation of LLM-based chat technology and voice replication
has allowed the Company to develop products that are suited to the music
management, sports management and celebrity sectors which aid fan interaction
and engagement.

Current trading and outlook

StreaksAI has generated a small amount of revenue from its interactive,
customizable chatbots. This technology is well suited to B2B fan engagement
platforms and the Company will be focusing on this area in the future.

Key Performance Indicators

 

 Focus                                                  Aim and Intention
 Meetings with Music Managers/Sports Clubs/Celebrities  This is how we monitor the success of our commercial offering
 Accuracy of AI chatbots                                Release of chatbots with inaccurate content is a big problem so we carefully
                                                        monitor this
 Cash burn                                              Inevitably this is a key metric and getting it to a minimum level is crucial
                                                        to the business

 

Principal risks and uncertainties

The Board consider that the principal risks revolve around the ability to
create and monetise opportunities within the AI sector.

The Company operates in a changing environment and is subject to a number of
risk factors. The Board consider the following to be of particular relevance
but this is by no means an exhaustive list, as there may be other risk factors
not currently known.

 

Risks Relating to the AI Sector

Whilst forecasts suggest that the AI sector will grow quickly in the coming
years, there is no guarantee that this is the case. At some point, growth will
slow and this may lead to stagnation of revenues and aggressive competition.

Whilst relatively immature, the AI sector is becoming increasingly competitive
new entrants are often well resourced and this may lead to difficulties in
competing with marketing expenditure to attract participants.

The Company relies up on 3(rd) party developers to produce the "full stack"
and has relationships with several of these. The use of 3(rd) party developers
means that the Company has a risk that the development may not be done in a
timely or accurate manner.

 

Risks Relating to the Company's Business Strategy

The Company is an early stage business. The Company's competition may be more
established companies who may have more resources and a more recognisable
brand presence in the market. The Directors believe that the Company's team
has the experience and connections to ensure that the business is able to
compete with established rivals and take advantage of market opportunities
they have identified.

Attracting high profile individuals to Streaks Social requires careful
negotiation and popular celebrities may be presented with multiple offers, not
just from the Company. As such, this competitive environment may lead to a
slower than forecasted take up rate of subscribers.

For all other risks, please see note 15.

 

Company's S172 Statement

The Directors believe they have acted in the way most likely to promote the
success of the Company for the benefit of its members as a whole, as required
by s172 of the Companies Act 2006.

The requirements of s172 are for the Directors to:

· Consider the likely consequences of any decision in the long term,

· Act fairly between the members of the Company,

· Maintain a reputation for high standards of business conduct,

· Consider the interests of the Company's employees,

· Foster the Company's relationships with suppliers, customers and others,
and

· Consider the impact of the Company's operations on the community and the
environment.

 

The Company operates as an organisation within a fast‐growing and developing
AI environment, and at times may be dependent on fund‐raising for continued
operation and/or growth. The nature of the business is understood by the
Company's members, employees and suppliers, and the Directors are transparent
about the cash position and funding requirements. The Company's employees are
fundamental to the success of the business.

The directors understand that it is critical to engage with and understand
their views and to ensure that all employees' interests are considered. To
strengthen employee engagement, the Directors promote and encourage all
employees to raise any concerns or suggestions with senior management without
hesitation. Stakeholder engagement is fundamental to the Company's strategy.
The application of the s172 requirements can be demonstrated in relation to
the some of the key decisions made during the period:

 

 Significant Events/Decisions                                                    Key S172 Matters affected                Actions and Consequences
 Strategy of signing multiple deals with music management, sports management     Shareholders and business relationships  Increasing the awareness of the Company on a global scale
 and celebrities
 Investment into software development to produce AI driven platforms in the fan  Shareholders and business relationships  To ensure that the Company has the platform to allow it to expand on a global
 engagement sectors                                                                                                       scale

 

This the strategic report is only part of the Company's annual accounts and
reports and should be read as part of the whole annual report.

 

Michael Edwards : Non-Executive Chairman

 

STATEMENT OF COMPREHENSIVE INCOME

 

 Year ended                                                                                 Year ended

 29 February                                                                                28 February
                                                                                  2024      2023

                                                                           Note   £'000     £'000
 Continuing Operations

 Revenue                                                                          1         -
 Cost of sales                                                                    -         -
 Gross profit                                                                     -         -
 Administrative expenses                                                   4      (1,513)   (3,351)
 Write down / impairment                                                          (63)      -
 Operating loss                                                                   (1,575)   (3,351)

 Finance income                                                                   -         -
 Finance costs                                                                    -         -
 Loss before taxation                                                             (1,575)   (3,351)

 Taxation                                                                  7      -         -
 Loss after taxation                                                              (1,575)   (3,351)
                                                                                  -         -

 Other comprehensive income

 Total comprehensive loss for the year attributable to shareholders from
 continuing

                                                                                  (1,575)   (3,351)
 operations

 Basic and diluted earnings per share - pence                              8      (0.42)    (1.24)

 

STATEMENT OF FINANCIAL POSITION

 

                                      As at              As at

                                      29 February 2024   28 February 2023

                               Note   £'000              £'000
 NON-CURRENT ASSETS
 Intangible assets             9      -                  63
 TOTAL NON-CURRENT ASSETS             -                  63

 CURRENT ASSETS
 Trade and other receivables   11     55                 196
 Cash and cash equivalents     10     565                2,070
 TOTAL CURRENT ASSETS                 620                2,266
 TOTAL ASSETS                         620                2,329

 EQUITY
 Share capital                 13     379                378
 Share premium                 13     4,880              4,880
 Share based payment reserve   14     704                704
 Retained earnings                    (5,527)            (3,951)
 TOTAL EQUITY                         436                2,011

 CURRENT LIABILITIES
 Trade and other payables      12     184                318
 Deferred revenue                     -                  -
 Lease liability                      -                  -
 TOTAL CURRENT LIABILITIES            184                318
 TOTAL LIABILITIES                    184                318
 TOTAL EQUITY AND LIABILITIES         620                2,329

 

STATEMENT OF CHANGES IN EQUITY

 Issued Share                                               Share     SBP       Retained   Total

 Capital                                                    Premium   Reserve   Earnings   Equity
                                 £'000                      £'000     £'000     £'000      £'000
 As at 1 March 2022              154                        449       25        (600)      28

 Loss for the year               -                          -         -         (3,351)    (3,351)
 Total comprehensive loss for the
 year
 -
 -                    -
 (3,351)         (3,351)

 Shares issued during the year   224                        4,432     -         -          4,656
 Share-based payments            -                          -         679       -          679
 Total transactions with owners  224                        4,432     679       -          5,355
 As at 28 February 2023          378                        4,880     704       (3,951)    2,011
 Issued Share                                               Share     SBP       Retained          Total

 Capital                                                    Premium   Reserve   Earnings          Equity
                                                    £'000   £'000     £'000     £'000             £'000
 As at 1 March 2023                                 378     4,880     704       (3,951)           2,011
 Loss for the year                                  -       -         -         (1,576)           (1,576)
 Total comprehensive loss for the
 year
 (1,576)         (1,576)

 Shares issued during the year                      1       12        -         -                 13
 Share-based payments                               -       -         -         -                 -
 Share issue costs during the year                  -       (12)      -         -                 (12)
 Total transactions with owners                     -       -         -         -                 -
 As at 29 February 2024                             379     4,880     704       (5,527)           436

 

 

STATEMENT OF CASHFLOW

                                                               Year ended    Year ended

                                                               29 February   28 February
                                                               2024          2023
                                                         Note  £'000         £'000
 Cash flow from operating activities
 Loss for the financial year                                   (1,576)       (3,351)
 Adjustments for:
 Write down / Impairment                                       63            -
 Services settled by issue of warrants                         -             679
 Changes in working capital:
 Decrease / (Increase) in trade and other receivables          141           (144)
 Increase / (decrease) in trade and other payables             (133)         186
 Net cash used in operating activities                         (1,505)       (2,631)

 Cash flows from investing activities
 Purchase of intangible assets                                 -             -
 Net cash used in investing activities                         -             -

 Cash flows from financing activities
 Proceeds from issue of shares                                 -             4,656
 Net cash (used in)/generated from financing activities        -             4,656

 Net (decrease)/increase in cash and cash equivalents          (1,505)       2,025
 Cash and cash equivalents at beginning of the period          2,070         45
 Cash and cash equivalents at end of the period          10    565           2,070

 

For full audited results: www.streaks.ai .

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