REG - Team PLC - Half-year Report
01/06/2023 07:00
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RNS Number : 2478B Team PLC 01 June 2023
1 June 2023
TEAM PLC
("TEAM", the "Company" or the "Group")
Interim Results
TEAM plc (AIM :TEAM), the wealth, asset management and complementary financial
services group, is pleased to announce its unaudited interim results for the
six months ending March 31st 2023. Separately today TEAM is announcing two
acquisitions which deliver on its strategy to expand geographical reach and
service capabilities and on completion will lift assets under management and
advice to over £850 million.
· TEAM is today announcing its interim results with total revenues for
the six month period to March 31st of £1.9 million (2021: £999,000)
reflecting the contribution made by acquisitions.
· Underlying loss before tax was reduced to £374,000 (2021: £382,000)
· The integration of the Omega and Concentric acquisitions has been
successful and both are now operating from the same offices
· TEAM is pleased to report that £25 million of client assets have
transitioned to TEAM AM model portfolios, underlining their robust
performance
· TEAM is also announcing separately today two acquisitions that
extend its geographical reach and service capabilities. First, for a total
consideration of up to £5.6 million, is Dubai headquartered Globaleye Wealth
Management which has 5 offices across Africa and Asia. Second, for a total
consideration of up to £2.5 million, is Thornton Associates, a financial
planning business based in the Isle of Man
· These deals, the fifth and sixth acquisitions since TEAM came to the
market in 2021 deliver on TEAM's strategy to build and expand into
fast-growing international finance centres and enhance its service
capabilities as well as on TEAM's strategy to build in the Crown Dependencies.
The integration of these businesses should deliver material cross -selling,
revenue and cost synergies
· As a result of these acquisitions, TEAM's total AUM will increase
to over £850 million
· TEAM has an ambitious roll-out strategy which requires ongoing
shareholder support; with its Jersey location, TEAM is ideally placed to
support clients living outside of their mainland home tax jurisdiction and
their specialist financial needs
Mark Clubb, CEO and Founder of TEAM said: "I am pleased to report that our
interim results demonstrate our ability to deliver, demonstrating the
attractions of our multi asset approach as well as our ability to successfully
deliver on integrating acquisitions. As a Group we continue to have an
ambitious roll-out strategy and I would like to thank our shareholders for
their ongoing support.
The acquisition of Globaleye and Thornton takes TEAM closer to £1 billion
under management in our target markets, and extends our global footprint to
seven countries. In doing so, we believe we are carving out a valuable section
of the high net worth market who are living outside of their mainland home tax
jurisdiction and in need of specialist financial advice, which in the past has
not been easily accessible. TEAM is filling that space and we see significant
scope to expand further."
Enquiries
TEAM plc
Mark Clubb / Matthew Moore
Telephone: +44 (0) 1534 877210
Hannam & Partners
(Financial Adviser to TEAM)
Giles Fitzpatrick / Ernest Bell / Richard Clarke
Telephone: +44 20 7907 8500
Shore Capital
(Nominated Adviser and Broker to TEAM)
Tom Griffiths / Guy Wiehahn / Iain Sexton
Telephone: +44 20 7408 4090
Novella Communications
(Financial Public Relations)
Tim Robertson / Safia Colebrook
Telephone: +44 20 3151 7008
teamplc@novella-comms.com (mailto:teamplc@novella-comms.com)
Information on TEAM
TEAM plc is building a new wealth, asset management and complementary
financial services group. With a focus on the UK, Crown Dependencies and
International Finance Centres, the strategy is to build local businesses of
scale around TEAM plc's core skill of providing investment management
services. Growth will be achieved via targeted and opportunistic acquisitions,
through team and individual hires, through collaboration with suitable
partners, and organic growth and expansion.
www.teamplc.co.uk
Executive Chairman's Statement
Dear Shareholders,
I am delighted to share with you the latest updates regarding our Company's
performance, strategic initiatives, and two significant acquisitions being
separately announced today that will greatly enhance our presence and
capabilities in the wealth, asset management and complementary financial
services industry.
First, I am pleased to report that we have witnessed ongoing client
migration into our Team AM Model Portfolios, our Discretionary Fund Management
(DFM) offering. To date, we have seen over £25 million of client assets
transitioning into these portfolios on various platforms, driven by our strong
investment performance and the suitability of our offerings.
Furthermore, our Model Portfolios are now available on various platforms,
including Morningstar and Quilter International. Expanding our presence on
these platforms will be a priority for us moving forward.
I am particularly proud of the successful integration of the Omega and
Concentric acquisitions. Both entities now operate from the same office,
following streamlined procedures and processes. Moreover, we are confident of
recruiting new talent to strengthen our team. This integration sets a strong
foundation for our continued growth and improved operational efficiency.
In light of recent developments in the banking sector, we have observed an
increase in client interest across various levels of our treasury management
services at JCAP. Clients have been taken by surprise and are actively seeking
reliable financial solutions. The business development opportunity has never
been stronger. Our focus now lies in converting these opportunities into
clients. The potential for growth is evident, and we are determined to
capitalise on these opportunities.
Turning to the financial performance for the 6 month period ended 31st March
2023 (unaudited), our revenue grew to £1.9 million representing a substantial
increase from the previous year's corresponding period (£999,000). However,
staff costs as anticipated increased to £1.4million as we continued to invest
in our talented workforce. Non-staff costs also increased as part of our
commitment to operational enhancements. These factors contributed to an
underlying loss before tax of £374,000 versus a loss of £382,000 in the
prior year.
While these results demonstrate the challenges we have faced, we are confident
in our ability to overcome them. This involves extending our services, both in
terms of type and jurisdictionally, and managing costs. But growing our client
base remains our top priority.
We are firmly committed to building shareholder value and believe that our
ongoing efforts and strategy will lead to improved financial performance in
the future. Our near term objective is to be cash-flow break even. However,
we have a clear path to achieving much more.
In addition to our financial performance, I am thrilled to announce two
significant acquisitions being separately announced today that will greatly
enhance our presence and capabilities and provide further scale and access to
new geographies.
First, the acquisition of Globaleye Wealth Management, a renowned boutique
advisory firm specialising in wealth management and financial services. With
offices across key global locations, including Dubai and Singapore, Globaleye
brings a wealth of expertise and a substantial client base with total assets
under advice of £242 million.
This strategic acquisition allows TEAM to tap into high-growth markets, expand
into new regions, and provide a wider range of services to our clients. We are
particularly excited about the opportunity to transition Globaleye clients to
TEAM's investment management services, offering them a seamless and integrated
experience.
Additionally, we are delighted to announce the conditional acquisition of
Thornton, a respected chartered Financial Planning firm based on the Isle of
Man. Thornton has established a strong reputation for providing financial
advice and investment services to individuals, trustees, and business owners.
With assets under advice of £121 million, Thornton brings valuable expertise
and a loyal client base to TEAM.
The integration of Thornton into our operations will create synergies and open
up growth opportunities within our previously stated Crown Dependencies
ambitions. Thornton's strong reputation and client relationships will
complement our existing international finance center offerings.
These acquisitions will bring our total AUA and AUM to over £850 million and
align with our strategic objectives of expanding our international footprint
and enhancing our service capabilities. By combining the strengths of
Globaleye and Thornton with TEAM's expertise and resources, we are
well-positioned to deliver good client value and holistic financial solutions
to our clients.
I would like to extend a warm welcome to the teams at Globaleye and Thornton,
who will play integral roles in our continued growth and success. We are
excited about the future prospects that these acquisitions bring and remain
committed to providing our clients with industry-leading financial services
across multiple jurisdictions.
Thank you for your ongoing support as we continue this transformative journey.
Together, we will seize new opportunities and solidify TEAM's position as a
premier wealth management and financial services group.
Thank you.
Sincerely,
Mr J M Clubb
Executive Chair
31 May 2023
Operational and Financial Review
Review of the results for the period
The table below shows the Group's financial performance for the six months to
March 2023 along with prior comparative periods and provides a reconciliation
to the underlying results, which the Company considers to be an appropriate
reflection of the Group's underlying trading, and the statutory result.
6 months ended 31 Mar 2023 (unaudited) 6 months ended 31 Mar 2022 (unaudited) Year ended 30 Sept 2022 (audited)
Period to 31(st) March 2023 £'000 £'000 £'000
Revenue 1,898 999 2,120
Direct Cost (228) (230) (414)
Contribution 1,670 769 1,706
Total staff costs (1,393) (785) (1,666)
Total non-staff costs (651) (366) (852)
Underlying (loss) before tax (374) (382) (812)
Underlying adjustments (132) (328) (776)
(Loss) before tax (506) (710) (1,588)
Tax 7 29 64
(Loss) for the period (499) (681) (1,524)
The first six months of the financial year includes full contributions from
the two financial advice businesses acquired in July and August 2022, and
these acquisitions account for the majority of the changes from the previous
interim results to 31(st) March 2022. Overall, the Group traded as expected,
in a challenging macroeconomic environment.
Revenues increased 90% to £1,898,000 from £999,000, while the underlying
loss before tax was improved at a loss of £374,000, reduced from £382,000.
Underlying adjustments of £132,000, reflecting non-cash expenses, were down
from £328,000.
Client assets
Reflecting the range of services provided by TEAM, we now report client assets
by the service provided:
· Investment management includes bespoke, modelled and advisory
portfolio management
· Fund management is where TEAM is the manager for fund structures
(together referred to as assets under management ("AUM")
· Financial planning assets under administration ("AUA") is where our
IFA businesses advise client but do not manage the investments
· Asset under review refers to the investment consulting service
provided to large trustee and institutional investors, and
· Cash Management is where JCAP advises trustees and institutional
invetors on their cash holdings.
The Directors consider that AUM and AUA together are the most informative
measure of client assets.
The table below shows the opening and closing client asset position and the
movements during the period broken down by segment and service provided:
6 months ended 31 Mar 2023 Net new business Investment performance and other Closing
31 Mar 2023
Opening
1 Oct 2022
£ million £ million £ million £ million
Investment management 134.1 3.7 5.5 143.3
Fund management 98.0 0.7 2.8 101.4
Total AUM 232.1 4.3 8.3 244.7
Financial planning 243.1 0.2 5.1 248.4
TOTAL AUM and AUA 475.2 4.5 13.4 493.1
Assets under investment review 77.2 78.4
Cash management 895.1 853.2
TOTAL CLIENT ASSETS 1,447.5 1,424.6
6 months ended 31 Mar 2022 Net new business Investment performance and other Closing
31 Mar 2022
Opening
1 Oct 2021
£ million £ million £ million £ million
Investment management 185.0 (4.3) (61.3) 119.4
Fund management 111.1 (9.7) (11.5) 89.8
Total AUM 296.1 (14.0) (72.9) 209.2
Financial planning 0.0 0.0 0.0 194.2
TOTAL AUM and AUA 296.1 (14.0) (72.9) 403.4
Assets under investment review 0.0 87.6
Cash management 0.0 1,382.2
TOTAL CLIENT ASSETS 296.1 1,873.2
.
During the 6 months to 31 March 2023, we are pleased to report that AUM and
AUA increased by 4% overall, with 1% from net inflows and 3% from investment
performance. This is a significant improvement from H1 2022 and reflects that
the businesses have settled down from a period of initial post-acquisition
disruption. The flow of client assets into investment management from the
financial planning businesses has accelerated, and there is now £6 million of
client assets under advice and management.
Segmental analysis
6 months ended 31 Mar 2023 Investment and fund management Advisory and consultancy Group and consolidation adjustments Group
(unaudited)
£'000 £'000 £'000 £'000
Revenue 511 1,387 - 1,898
Direct Cost (200) (28) - (228)
Contribution 311 1,359 - 1,670
Indirect Costs (715) (1,005) (324) (2,044)
Underlying (loss) before tax (404) 354 (324) (374)
Underlying adjustments - - (132) (132)
(Loss) before tax (404) 354 (456) (506)
Tax 43 (36) - 7
(Loss) for the period (361) 318 (456) (499)
6 months ended 31 Mar 2022 Investment and fund management Advisory and consultancy Group and consolidation adjustments Group
(unaudited)
£'000 £'000 £'000 £'000
Revenue 531 468 - 999
Direct Cost (202) (28) - (230)
Contribution 329 440 - 769
Indirect Costs (621) (224) (306) (1,151)
Underlying (loss) before tax (292) 216 (306) (382)
Underlying adjustments - - (328) (328)
(Loss) before tax (292) 216 (634) (710)
Tax 29 - - 29
(Loss) for the period (263) 216 (634) (681)
12 months ended 30 Sept 2022 (audited) Investment and fund management Advisory and consultancy Group and consolidation adjustments Group
£'000 £'000 £'000 £'000
Revenue 1,025 1,095 - 2,120
Direct Cost (386) (28) - (414)
Contribution 639 1,067 - 1,706
Indirect Costs (1,245) (605) (668) (2,518)
Underlying (loss) before tax (606) 462 (668) (812)
Underlying adjustments - - (776) (776)
(Loss) before tax (606) 462 (1,444) (1,588)
Tax 67 (3) - 64
(Loss) for the period (539) 459 (1,444) (1,524)
Revenues
Total revenues rose 90% to £1,898,000 (H1 22: £999,000). Investment and fund
management ("IFM") revenues fell 3.8% to £511,000, as the MSCI Private Client
Balanced Index fell 4.8% compared with the average of H1 22. Advisory and
Consultancy ("A&C") increased 196% to £1,387,000 (H1 22: £468,000), with
the change primarily due to the inclusion of a full 6 months of contributions
from the two financial planning acquisitions.
Costs
The total underlying costs for the Group increased by 78% to £2,044,000,
(H1 22: £1,151,000), with the new acquisitions accounting for the bulk of the
increase. IFM saw a 15% increase to £715,000 (H1 22: £621,000), as the
businesses responded to salary and IT inflation in Jersey, while A&C
increased 348% to £1,005,000 (H1 22: £224,000).
Loss before tax
The resulting loss before tax for the half year was £506,000 (H1 22:
£710,000), a reduction in the loss of 28%. The underlying loss before tax
decreased by 2% to £374,000 (H1 22: £382,000). IFM's loss increased 57% to
£404,000 (H1 22: 292,000), which A&C generated a profit of £354,000, 64%
up from £216,000.
The underlying adjustments are shown in the below table:
6 months ended 31 Mar 2023 (unaudited) 6 months ended 31 Mar 2022 (unaudited) Year ended 30 Sept 2022 (audited)
Period to March 23 £'000 £'000 £'000
Underlying (loss) before tax (374) (382) (812)
Amortisation of client relationships (497) (229) (543)
Acquisition related expenses - (54) (129)
Changes in fair value deferred contingent consideration 452 - -
Interest and depreciation (87) (45) (104)
Total underlying adjustments (132) (328) (776)
(Loss) before tax (506) (710) (1,588)
Amortisation of client relationships was £497,000 (H1 22: £229,000) with a
full period of amortisation of the intangible assets relating to the two
financial planning business. Contingent deferred consideration payable for
these acquisitions included income targets, and with the fall in global asset
markets in the past period, neither businesses reached the targets for the
maximum payments, and a reduction in the amount payable has been recorded.
This was £452,000 in 2023 (H1 22: nil). There were no acquisition related
expenses. Total underlying adjustments were £132,000 (H1 22: £328,000).
Taxation
Regulated financial services businesses in Jersey pay a flat corporation tax
rate of 10%. The treasury services business is not regulated and has a nil tax
rate.
Earnings per share
The Group's underlying loss per share was 1.7p, a reduction of 23% from 2.2p
in H1 22. The loss per share was 2.3p, a reduction of 41% from 3.9p in H1 22.
Financial position and going concern
The Group's cash position has fallen from £3.0 million to £0.9 million. As
at 31 March 2023 the regulated entities within the Group all held in excess of
the required level of regulatory assets.
The Directors have prepared financial projections along with sensitivity
analyses of reasonably plausible alternative outcomes, covering clients and
assets, cost inflation and take up of group services. The forecasts
demonstrate that the Directors have an expectation that the Group will require
additional financial resources to meet working capital requirements and the
cash-settled consideration liabilities due in the coming 12 months. This
liquidity position has been exacerbated by the challenging market conditions,
with falls in asset prices, and cost inflation, especially in salaries, moving
the business away from generating a cash profit from the current operations of
the Group. The requirement for additional fundraising has been highlighted as
a feature of the business model for TEAM in the initial years on the business
plan. The placing and subscription in May 2022 which raised £2.7m for the
acquisition of Concentric saw a high level of follow on investment from the
Company's institutional and private shareholders, and Board members. It is
this support from the current shareholders, and the expectation that further
earnings enhancing acquisitions will be brought to current and potential
shareholders for equity financing in 2023, that gives the Board sufficient
confidence to consider the going concern basis to be appropriate for the
accounts.
Dividend
The Group is at the early stages of building the business, and so is consuming
capital. No dividends are expected to be paid until underlying profits are
made.
Mr M C Moore
CFO and COO
31 May 2023
Consolidated Statement of Comprehensive Income
6 months ended 6 months ended 12 months ended
31 Mar 2023 31 Mar 2022 30 Sept 2022
(unaudited) (unaudited) (audited)
Note £'000 £'000 £'000
Revenues 3 1,898 999 2,120
Cost of sales 3 (228) (230) (414)
Operating expenses 3 (2,610) (1,469) (3,271)
Operating (loss) (940) (700) (1,565)
Operating (loss) before exceptional items (940) (645) (1,436)
Exceptional items 8 - (54) (129)
Operating (loss) after exceptional item (940) (700) (1,565)
Realised gain on investments 5 452 - -
Other income and charges (18) (10) (23)
(Loss) on ordinary activities before tax (506) (710) (1,588)
Taxation 7 29 64
(Loss) for the period and total comprehensive (loss) (499) (681) (1,524)
(Loss) per share (basic and diluted) 11 (2.3)p (3.9)p (7.9)p
The accompanying notes on pages 13 to 19 form an integral part of these
Condensed consolidated financial statements.
Consolidated Statement of Financial Position
31 Mar 2023 31 Mar 2022 30 Sept 2022
(unaudited) (unaudited) (audited)
Note £'000 £'000 £'000
ASSETS
Non-current assets
Intangible assets 6,883 2,325 7,380
Goodwill 6 1,896 1,191 1,896
Property, plant & equipment 7 79 60 66
Right of use asset 7 615 441 671
Deferred tax 199 118 156
Long term deposit 67 55 63
9,739 4,190 10,232
Current assets
Trade, other receivables and prepayments 961 545 910
Cash and cash equivalents 4 864 3,013 1,747
1,825 3,558 2,657
Total assets 11,564 7,748 12,889
LIABILITIES
Amounts falling due within one year
Trade and other payables (565) (360) (889)
Lease liability (110) (43) (102)
Deferred consideration 5 (1,338) - (1,649)
(2,013) (403) (2,640)
Amounts falling due after one year
Lease liability (555) (403) (592)
Deferred (838) - (1,000)
consideration
5
(1,393) (403) (1,592)
Total liabilities (3,406) (806) (4,232)
Total net assets 8,158 6,942 8,657
EQUITY
Stated Capital 9 12,349 9,791 12,349
Retained earnings (4,191) (2,849) (3,692)
Total Equity 8,158 6,942 8,657
The condensed consolidated interim financial statements were approved and
authorised for issue by the board of the directors on the 31 May 2023 and were
signed on its behalf by:
Mr J M
Clubb
Mr M C Moore
Executive
Chair
CFO and COO
Consolidated Statement of Cash Flows
6 months ended 6 months ended 12 months ended
31 Mar 2023 31 Mar 2022 30 Sept 2022
(unaudited) (unaudited) (audited)
Note £'000 £'000 £'000
Cash flows from operating activities
(Loss) for the year before tax (506) (710) (1,588)
Adjustments to cash flows from non-cash items:
Depreciation and amortisation 567 264 624
Finance costs 18 10 23
Trade and other receivables 87 (18) (362)
Trade and other payables (494) (1,410) (61)
Realised gain on investments 5 (452) - -
Net cash (outflow) from operating activities (780) (1,864) (1,364)
Cash flows from investing activities
Acquisition of subsidiary net of cash acquired - - (3,496)
Payment of deferred consideration - - (1,534)
Acquisition of property, plant and equipment (30) (9) (15)
Net cash (outflow) from investing activities (30) (9) (5,045)
Cash flows from financing activities
Lease liability paid (73) (35) (85)
Issue of share capital - - 2,743
Net cash (outflow) from financing activities (73) (35) 2,658
Net decrease in cash and cash equivalents (883) (1,908) (3,751)
Cash and cash equivalents from at beginning of period/ year 1,747 4,921 4,921
Cash and cash equivalents from acquired subsidiaries - - 577
Cash and cash equivalents at end of period/ year 864 3,013 1,747
Consolidated Statement of Changes in Equity
Stated Retained Total
capital earnings equity
£'000 £'000 £'000
At 1 October 2021 9,606 (2,168) 7,438
New share Capital 185 - 185
(Loss) for the period - (681) (681)
At 31 March 2022 9,791 (2,849) 6,942
Stated Retained
capital loss Total
£'000 £'000 £'000
At 1 April 2022 9,791 (2,849) 6,942
New share Capital 2,558 - 2,558
(Loss) for the period - (843) (843)
At 30 September 2022 12,349 (3,692) 8,657
Stated Retained
capital loss Total
£'000 £'000 £'000
At 1 October 2022 12,349 (3,692) 8,657
New share Capital - - -
(Loss) for the period - (499) (499)
At 31 March 2023 12,349 (4,191) 8,158
Notes to the Consolidated Financial Statements
1. General information
TEAM plc (the "Company") is the parent company of a group of companies (the
"Group") which offers a range of investment management, fund management,
financial planning and other financial services to retail, professional and
institutional clients.
The Company is a public limited company and is incorporated and domiciled in
Jersey, Chanel Islands. The address of the registered office is 6 Caledonia
Place, St Helier, Jersey, JE2
2. Accounting policies
Basis of preparation and accounting policies
The accounting policies and estimates adopted are consistent with those of the
previous financial period as disclosed in the 2022 Report and Audited
Consolidated Financial Statements.
The financial information in this interim report has been prepared in
accordance with the disclosure requirements of the AIM Rules for Companies and
the recognition and measurements of International Financial Reporting
Standards ("IFRS"), as adopted by the European Union ("EU"). They have been
prepared on a going concern basis with reference to the accounting policies
and methods of computation and presentation set out in the Group's
Consolidated financial statements for the year ended 30 September 2022.
The Interim 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 the Group's audited financial statements
for the year ended 30 September 2022, which have been prepared in accordance
with International Financial Reporting Standards ("IFRS") as issued by the
International Accounting Standards Board ("IASB"), the interpretations issued
by the International Financial Reporting Interpretations Committee ("IFRIC")
and the requirements of Companies (Jersey) Law 1991.
The information relating to the six months ended 31 March 2023 is unaudited
and does not constitute statutory financial statements. The Group's
Consolidated financial statements for the year ended 30 September 2022 have
been reported on by the Group's auditor. The report of the auditor was
unqualified.
Consolidated financial statements
The consolidated financial statements incorporate the financial statements of
the Company and subsidiary entities controlled by the Company made up to 31
March 2023. Control is achieved where the Company is exposed, or has rights,
to variable returns from its involvement with an investee company and has the
ability to affect those returns through its power over the other entity; power
generally arises from holding a majority of voting rights.
3. Operating Segments
Following the acquisitions of the subsidiaries, the Group now identifies two
principal operating segments, Investment and Fund Management ("IFM") and
Advisory and Consultancy ("A&C"), and a number of group operating
activities that have been aggregated into one operating segment.
IFM provides investment management services for individuals, trusts, sovereign
agencies and corporations, and fund management services to for a range of fund
vehicles. AC provides personal financial advice, investment consulting, and
treasury advisory services. Both segments are located in Jersey, Chanel
Islands.
No customer represents more than 10% of group revenues (FY 22: nil)
The segmental analysis is shown in the Operating and Financial Review section.
4. Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other
short-term highly liquid investments that are readily convertible to a known
amount of cash and are subject to an insignificant risk of change in value.
Such investments are those with original maturities of three months or less.
5. Deferred Consideration
As at As at As at
31 Mar 2023 31 Mar 2022 30 Sept 2022
£'000 £'000 £'000
Opening balance 2,649 - 1,494
Additions in the period - - 2,649
Additional consideration due from prior years - - 40
Deferred consideration paid in period (20) - (1,534)
Realised gain on deferred consideration remeasured (453) - -
Closing balance 2,176 - 2,649
Deferred consideration split 31 Mar 2023 31 Mar 2022 30 Sept 2022
£'000 £'000 £'000
Equity consideration 973 - 1,263
Cash consideration 1,203 - 1,386
Total deferred consideration 2,176 - 2,649
Deferred consideration relates to the acquisition of Omega Financial Services
Limited and Concentric Group Limited during the second half of the financial
year ended 30 September 2022.
During the period to 31 March 2023, £20,217 of deferred consideration was
paid to Omega Financial Services. Additionally, the fair value of the deferred
consideration has been remeasured during the period as a result of
expectations in relation to meeting post-acquisition targets. The gain has
been recognised in the Statement of Comprehensive Income for the period.
Of the £2,175,984 due payable as at 31 March 2023, £837,784 is due payable
in more than one year.
6. Goodwill
As at As at As at
31 Mar 2023 31 Mar 2022 30 Sept 2022
£'000 £'000 £'000
Opening balance 1,896 1,191 1,191
Acquisitions during the period - - 705
Closing balance 1,896 1,191 1,896
Goodwill is assessed annually for impairment and the recoverability will be
assessed as part of the full year financial statements and audit at 30
September 2023.
7. Property, plant and equipment
Right of Equipment Computer Leasehold
use assets & fixtures Hardware Improvements Total
£'000 £'000 £'000 £'000 £'000
Cost
At 1 October 2022 757 51 52 2 862
Additions - - 25 - 25
Disposals - - - - -
At 31 March 2023 757 51 77 2 887
Depreciation
At 1 October 2022 86 14 25 - 125
Disposals - - - - -
Charge for the year 56 5 7 - 68
At 31 March 2023 142 19 32 - 193
Carrying Amount
At 31 March 2023 615 32 45 2 694
At 30 September 2022 671 37 27 2 737
The right-to-use asset balance is made up of three properties across the
Group. The three properties are:
- 6 Caledonia Place, St Helier, Jersey, JE2 3NG. The lease term ends
on 30 April 2030.
- Ground Floor, 3 Mulcaster Street, St Helier, Jersey, JE2 3NJ. The
lease term ends on 23 March 2026.
- Third Floor, Conway House, St Helier, Jersey, JE2 3NT. The lease
terms ends on 31 October 2027.
8. Exceptional items
6 months ended 6 months ended 12 months ended
31-Mar-23 31-Mar-22 30 Sept 2022
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
IPO and acquisition related costs - 54 129
- 54 129
9. Stated capital
As at As at As at
31 Mar 2023 31 Mar 2022 30 Sept 2022
No. No. No.
Allotted, called and fully paid shares
Ordinary shares 21,976,145 17,559,478 21,976,145
As at As at As at
31 Mar 2023 31 Mar 2022 30 Sept 2022
£'000 £'000 £'000
Stated capital
Opening balance 12,349 9,606 9,791
New Capital subscribed - 185 2558
12,349 9,791 12,349
10. Related party transactions
Key management personnel are the same as the Directors.
There are no further related party transactions to be disclosed during the
year.
11. Earnings per share
The Group has calculated the weighted-average number of outstanding ordinary
shares for the period as follows:
6 months ended 31 Mar 2022 Number of shares Time weighting Weighted average number of shares
Balance brought forward 17,299,795 6/6 17,299,795
28 February - 31 March 2022 259,683 1/6 43,281
17,559,478 6 months 17,343,076
12 months ended 30 Sept 2022 Number of shares Time weighting Weighted average number of shares
Balance brought forward 17,299,795 12/12 17,299,795
28 February - 31 March 2022 259,683 7/12 151,482
May 2022 - Project Sword 4,416,667 5/12 1,840,278
21,976,145 12 months 19,291,555
6 months ended 31 Mar 2023 Number of shares Time weighting Weighted average number of shares
Balance brought forward 21,976,145 6/6 21,976,145
21,976,145 6 months 21,976,145
The Parent Company does not have any contingent issuable shares as at year
end, hence diluted loss per share is the same as the basic loss per share
Loss per share As at As at As at
31 Mar 2023 31 Mar 2022 30 Sept 2022
Loss for the financial period and total comprehensive loss (£'000) (499) (681) (1,524)
Weighted average number of shares 21,976,145 17,343,076 19,291,555
Pence per share (2.3p) (3.9p) (7.9p)
Adjusted loss per share As at As at As at
31 Mar 2023 31 Mar 2022 30 Sept 2022
Adjusted underlying loss before tax (£'000) (374) (382) (812)
Weighted average number of shares 21,976,145 17,343,076 19,291,555
Pence per share (1.7p) (2.2p) (4.2p)
12. Dividends
No interim dividend has been paid or proposed in respect of the current
financial period (2022: nil).
13. Events after the statement of financial position date
On 31 May 2023 TEAM completed the acquisition of the Globaleye Wealth
Management Group, an international wealth management business, headquartered
in Dubai, with five further offices and total client assets under advice and
influence of £730 million, for a total consideration of up to £5.6 million.
On 31 May 2023, TEAM entered into an agreement to acquire, subject to
regulatory approval, Thornton Chartered Financial Planners, an Isle of Man
based financial planning business with client assets of £121 million, for
total consideration of up to £2.9 million.
On 31 May 2023 JCAP, the treasury services business of TEAM, reached a
settlement with an historic client to receive a payment of £650,000 in
settlement of the termination of the of a referral agreement. This will be
cash settled in H2 2023.
Company number
129405
Brokers and nominated adviser
Shore Capital
Cassini House,
57 St James's St,
London
SW1A 1 LD
Financial adviser
Hannam & Partners
3rd Floor, 7-10 Chandos Street,
London,
W1G 9DQ
Lawyers
Hatstone
6 Caledonia Place,
St Helier, Jersey,
Channel Islands
JE2 3NG
Financial PR
Novella Communications
South Wing, Somerset House
The Strand
London
WC2R 1LA
Bankers
Butterfield Bank (Jersey) Ltd
St Paul's Gate
New Street
St Helier
Jersey
E4 5PU
Registered office
6 Caledonia Place
St Helier
Jersey
JE2 3NG
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