REG - Tintra PLC - 12 Month Unaudited Results to 31 January 2023

TintraAnnouncement

31/07/2023 09:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230731:nRSe7183Ha&default-theme=true

RNS Number : 7183H  Tintra PLC  31 July 2023

 THIS ANNOUNCEMENT CONTAINS INFORMATION THAT QUALIFIED OR MAY HAVE QUALIFIED
AS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE
REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE
EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("UK MAR")

 

31 July 2023

 

Tintra plc

("Tintra", the "Group" or the "Company")

 

12 Month Unaudited Results to 31 January 2023

Annual General Meeting Statement

 

 

The board of directors (the "Board") of Tintra, the rapidly innovating Deep
Tech & Banking business, provides the 12-month unaudited financial results
for the 12 months year ended 31 January 2023 ("FY23") and a business update
ahead of the Company's annual meeting ("AGM") to be held later today.

 

As has been previously announced the Company could not, due to diary conflicts
with its auditor, prepare audited accounts in time for the 31 July 2023
deadline. The Company has been working closely with a regulated third party to
support its audit work and has a fully formed Statutory Report ready for
audit.

 

The Company expects to be delivering this not later than end of September 2023
and it fully expects there to be no material differences between those audited
accounts and the short form Statutory Report below that is built off of that
larger document.  As the Company will not publish audited financial results
before the 31 July 2023 deadline, trading in the Company's shares will be
temporarily suspended from trading on AIM with effect from 7.30 a.m. on 1
August 2023 until the publication of its audited accounts for FY23.

 

The Board commented, "We remain disappointed that a situation that is
affecting the entire marketplace for audit has affected us despite our being
very prepared and starting work in late February. It is something we would of
course preferred to have avoided but it is also not something that impacts our
day-to-day work. We look forward to discussing this at the AGM and to
providing the audited accounts in due course."

 

Chairman's Statement

 

During the year to 31 January 2023, the Company continued its focus on the
transformative change management process, focusing the business on the one
core aim of building a deep tech-based banking business of the future. The
ground that the Company has covered in past 23 months since becoming Tintra
plc is quite astounding, with it now being a key player in the development of
a very advanced and sophisticated banking platform.

 

As expected, the Company has not traded and as such has no revenues during
this research & development phase. The year has been driven by putting in
place the essential building blocks for that technology and banking
infrastructure, including key talent hiring at all levels, securing our first
regulatory licences, contracting for our major banking infrastructure system
and significant work that has taken place to build the functional requirements
for that.

 

The Company is building infrastructure that has the potential to change the
way the world banks. It won't happen overnight but the pace at which these
innovations are happening is meaningful.

 

Current Trading, Outlook and Transformation

 

The board of directors are delighted with the significant progress that has
been made in the Group's transformation during the period. The legacy issues
of the past are behind us. As I stated last year the importance of making sure
the new Tintra was built on a very clean foundation remains paramount. It is
important to remember that at the same time as rapid transformation in our new
mission, we have had immense amounts of work to resolve old legacy matters.

 

We continued to build resilience in our talent pool through additions to the
Group's Board and advisory team, highly skilled PhD senior management team
leads and key roles throughout the business as building blocks for the new
bank systems and infrastructure.

 

The Board are delighted with the securing of operating licences in two key
jurisdictions and remain positive about ongoing work to secure operating
licences in at least 3 other regions and countries.

 

As expected, the strategic financing and commercial agreement with Tintra
Acquisitions Limited announced in March 2021 led to other substantial
investments in Tintra and its exciting transformation program. In the year,
the Company brought in four new strategic investors from North America, the
Gulf and Southeast Asia, which set in place its foundation for critical
research and discovery work. The Company raised net seed capital and funding
in the year of £11.65 million in addition to that from Tintra Acquisitions
Limited, to further support Tintra during its initial Research &
Development phase. That funding included US$3.0 million from Fintech Leaders
Fund, with which the Company later reached an agreement for full & final
settlement as described in the Chief Financial Officer's report as a Post
Balance Sheet Event. Discussions with the four strategic key investors
continue regarding the next phase of the Company's development ahead of the
platform infrastructure going live in 4th quarter of 2024.

 

As regards the $2.0m (£1.61m equivalent) strategic investment from a
Gulf-based investor which was first announced on 10 March 2023 (as such, a
FY23 post-balance sheet event) and updated on 9 June 2023 and 11 July 2023,
the Board updates that the parties remain in close contact progressing the
investment and the mutually agreed an extension until 31 August 2023 remains
in place.

 

The Company's strategic business plan and clear vision for executing on it
remains in place.

 

CEO's Review

The year to the end of January saw such vast change within our company as we
built new relationships, created new inventions and hired more passionate
individuals to help us contribute in our own way to solving the major global
challenge of the planet in the 2020's - namely driving financial and social
equality across the world.

The magical conversations that drive our business on a daily basis often feel
at odds with the public company that for reasons that remain beyond me seem to
not be part of the vast coterie of those who support our mission and see the
need for true revolution in banking the Global South.

In the past 3 months alone we have met with, and received support in different
ways, from representatives of the United Nations, the World Bank, the United
States Government and a range of African and Central Asian Governments, all at
very senior levels.

 

Our team of mission driven people that work night and day to make the changes
that we need to make now includes anthropologists, sociologists, world beating
artificial intelligence technologists - with 10 new hires due to begin next
month to make the Tintra Culture Lab a leader in its field - not least because
no others are seeing the world as we are.

 

We have or are in the process of setting up footprint operations in Doha,
Rwanda, Singapore, Azerbaijan. A few weeks ago our Chief Innovation Officer
spoke in Baku about the need for more holistic understanding of risk in
Central Asia and about a month ago I was honoured to share a stage with
African Presidents and senior government people at the Fintech Summit in
Kigali.  Th establishment of a new banking hub in Rwanda, first announced on
8 March 2023 and updated on 9 June 2023, continues to progress and discussions
with the Rwandan authorities remains positive regarding the development of a
business plan.  Further updates will be made as materially milestones are
archived.

Our work really is at the leading edge of pioneering emerging world banking
transformation and I am constantly humbled by the support of the numerous
governments, multilaterals and regulators our work receives. This is a big
mission that requires a medium-term view and an understanding of what the
solution looks like.

We have been approached by a governmental organisation to assist in their
building of a banking platform on our technology - again humbling validation
that a company less than 2 years into its work is getting asked to do things
that in all reason it would be expected that a legacy incumbent would be
asked. The fact that they are not underlines the opportunity for Tintra but
also the unfortunate fact that most of the world is not taking the needs of
the Global South as seriously as it should. We are grateful for the support of
the government bodies who support us in absolutely getting what we are doing
and why.

The work that we undertake on a daily basis is exciting and passion-inducing
internally and to our stakeholders; yet we see a key divergence of what we do,
day to day, and difficult reactions to that on AIM.

 

The Company will press on regardless. We have investors, staff and advisors
that counsel governments and multilaterals helping drive our mission. Our
entire raison d'etre is to solve the challenges of inequality in the world. We
will continue that work in whatever form we need to take as an organisation,
to be able to do the most good for the most people at the greatest pace.

 

The Tintra Foundation recently hosted a dinner attended by His Majesty King
Charles III in which he noted that the work of saving indigenous knowledge was
something he views as an imperative and that he was glad it is finally being
done, some 35 years after he first noticed the need.

 

It is these great things, the great innovations, the dozens of new inventions
and patents, the buy-in from governments and the requests from global
organizations for our input and assistance that drive us passionately every
day. We know we are on track to make real change.

I look forward to providing a fuller and more complete update when the audited
accounts are released within the next 8 weeks.

 

For further information, contact:

 

 Tintra PLC                                        020 3795 0421

 (Investor Relations)

 ir@tintra.com

 Website www.tintra.com

 Allenby Capital Limited                           020 3328 5656

 (Nomad, Financial Adviser & Broker)

 John Depasquale / Nick Harriss / Vivek Bhardwaj

 

 

 

 

Consolidated Statement of Profit and Loss and Other Comprehensive Income

for year ended 31 January 2023

                                                               2023       2022
                                                               £000       £000
 Continuing operations

 Revenue                                                       -          351
 Cost of sales                                                 -          (469)
 Gross loss                                                    -          (118)

 Administrative expenses
 Other administrative expenses                                 (2,572)    (1,098)
 Loss on disposal of fixed assets                              -          (15)
 Impairment of goodwill                                        -          (334)

 Total administrative expenses                                 (2,572)    (1,447)

 Fair value gain on financial assets                           281        670

 Operating loss                                                (2,291)    (895)

 Finance expenses                                              (46)       (59)
 Other income                                                  113        -

 Loss before tax                                               (2,224)    (954)

 Income tax expense                                            -          -

 Loss for the year from continuing operations                  (2,224)    (954)

 Discontinuing operations

 Gain from discontinued operations, net of tax                 1,316      500

 Loss for the year                                             (908)      (454)

 Other comprehensive loss:

 Other comprehensive profit for the year, net of income tax    -          -

 Total comprehensive loss for the year                         (908)      (454)

 Attributable to:
 Owners of Tintra PLC                                          (908)      (454)
 Non-controlling interest                                      -          -
                                                               (908)      (454)

 

 Loss per share

 Basic loss per ordinary share (pence per share)        (0.06)                        (0.05)
 Diluted loss per ordinary share (pence per share)      (0.06)                        (0.05)

 Loss per share from continuing operations

 Basic loss per ordinary share (pence per share)        (0.15)                        (0.11)
 Diluted loss per ordinary share (pence per share)      (0.15)                        (0.11)

 Earnings per share from discontinued operations

 Basic earnings per ordinary share (pence per share)    0.09                          0.06
 Diluted earnings per ordinary share (pence per share)  0.09                          0.06

 

 

Consolidated Statement of Financial Position

At 31 January 2023

                                                    2023        2022
                                                    £000        £000
 Non-current assets
 Property, plant and equipment                      42          40
 Goodwill                                           -           -
 Other intangible assets                            39          -
 Non-current other receivables                      -           35
 Investments in debt instruments                    2,198       1,917
 Total non-current assets                           2,279       1,992

 Current assets
 Trade and other receivables                        501         151
 Cash and cash equivalents                          9,997       512
                                                    10,498      663

 Disposal group classified as held for sale         -           367

 Total current assets                               10,498      1,030

 Total assets                                       12,777      3,022

 Current liabilities
 Trade and other payables                           (11,195)    (2,126)
 Bank and other borrowings                          (7)         (7)
                                                    (11,202)    (2,133)

 Disposal group classified as held for sale         -           (279)

 Total current liabilities                          (11,202)    (2,412)

 Non-current liabilities
 Bank and other borrowings                          (428)       (434)

 Total liabilities                                  (11,630)    (2,846)

 Net assets                                         1,147       176

 Equity attributable to owners of the parent
 Share capital                                      3,239       3,230
 Share premium                                      7,122       5,252
 Other reserves                                     141         141
 Retained deficit                                   (9,355)     (8,447)

 Total equity attributable to owners of the parent  1,147       176

 

 

Consolidated Cash Flow Statement

for year ended 31 January 2023

                                                       2023       2022
                                                       £000       £000
 Cash flows used in operating activities
 Profit/(loss) before tax
 Continuing operations                                 (2,224)    (954)
 Discontinued operations                               1,316      500
                                                       (908)      (454)
 Adjustments for:
 Depreciation                                          5          2
 Amortisation                                          -          5
 Financial expenses                                    51         (28)
 Share based payment expense                           124        -
 Fair value adjustments                                (281)      (670)
 Loss on disposal of fixed assets                      -          30
 Gain on disposals of subsidiaries                     1,037      848

 Movement in working capital:
 Increase in trade and other receivables               (350)      (361)
 Decrease/(increase) in non-current receivables        35         (35)
 Decrease in trade and other payables                  (2,497)    (1,880)

 Cash used in operations                               (2,784)    (2,543)
 Interest paid                                         (11)       -
 Net cash used in operating activities                 (2,795)    (2,543)

 Cash flows from/(used in) investing activities:
 Disposal of subsidiaries                              50         -
 Acquisition of plant and equipment                    (39)       (40)
 Acquisition of intangibles                            (7)        -
 Net cash from/(used in) investing activities          4          (40)

 Cash flows from financing activities:
 Issue of share capital                                1,730      2,035
 Cash from financial liabilities issued                10,558     -
 Cash from loan notes                                  -          134
 Repayment of bank loans                               (12)       (6)
 Net cash from financing activities                    12,276     2,163

 Net increase/(decrease) in cash and cash equivalents  9,485      (420)

 Cash and cash equivalents at start of period          512        932

 Cash and cash equivalents at end of period            9,997      512

 

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  FR DFLBXXDLZBBQ