TIDMBANK
RNS Number : 6339J
Fiinu PLC
17 August 2023
17 August 2023
This announcement contains inside information as stipulated
under the UK version of the Market Abuse Regulation (EU) No.
596/2014 which is part of English Law by virtue of the European
(Withdrawal) Act 2018, as amended. On publication of this
announcement, this information is considered to be in the public
domain.
FIINU PLC
("Fiinu" or the "Company" or the "Group")
Interim results for the six months ended 30 June 2023
Fiinu , a fintech group, creator of the Plugin Overdraft(R),
announces its unaudited half-year results for the six months ended
30 June 2023.
Business Highlights
* The Company continues to source the additional
funding required for it to re-apply to the regulators
to re-start its banking licence application
* April 2023: Successful completion of the technology
build of the Plugin Overdraft(R)
* July 2023: Cost reductions initiated within
subsidiaries Fiinu 2 Limited and Fiinu Holdings
Limited, including providing notice to reduce
staffing levels and re-negotiation or termination of
agreements with suppliers
* March 2023: Raised GBP0.5m of new ordinary share
capital by immediate subscription to new and existing
shareholders
* April 2023: Raised GBP0.75m of new ordinary share
capital by exercising the right to convert the drawn
down loans with Dewscope Limited into equity
* April 2023: Application to withdraw its banking
licence with aim to re-apply after a short period of
two to three months once full funding commitment is
secured
* Other options are also being considered by the Board,
which may include a change of strategy and/or a sale
of the Group's technology assets should the
additional funding commitment it requires not be
forthcoming
Financial Highlights
* Cash at period end GBP4.3 million
* Accounting loss for the period GBP4.2 million
Chris Sweeney, Fiinu's Chief Executive said:
"Given the business was operationally ready, following the successful
completion of the technology build of the Plugin Overdraft(R),
it is therefore with deep regret that we have had to scale back
operations in Fiinu 2 Limited and Fiinu Holdings Limited. The
current general capital, and market specific conditions, are
increasingly challenging for a business at Fiinu's current stage
of development.
"I would like to take the opportunity to thank our shareholders
for their support and colleagues for the considerable efforts
in developing the technology and the infrastructure to be in
a position to launch the product into the market.
"We continue in our efforts to seek the required investment to
re-apply for the banking licence, whilst also considering other
options for the business, which may include a change of strategy
or sale of the Group's technology assets ."
Key Financials
Highlighted below are the key unaudited financial highlights
for the s ix months to 30 June 2023, compared to t he six months
to 30 June 2022 and the audited year ending 31 December 2022.
Unaudited Unaudited Audited
half year half year year to
to to 31 Dec 2022
30 Jun 2023 30 Jun 2022 GBP
GBP GBP
--------------------------------- ------------- ------------ -------------
Revenue - - -
Gross profit - - -
Administrative expenses (4,395,412) (983,206) (8,218,903)
Investment revenues 27,851 11,596
Net finance cost / income (47,924) 69,111 (9,970)
--------------------------------- ------------- ------------ -------------
Loss before taxation (4,415,486) (914,095) (8,217,277)
Income tax income 253,462 - 377,879
--------------------------------- ------------- ------------ -------------
Loss and total comprehensive
income (continuing operations) (4,162,024) (914,095) (7,839,398)
Gain on disposal of investments - 612,377 -
Impairment of goodwill - (219,595) -
and intangible assets
--------------------------------- ------------- ------------ -------------
Profit from discontinued - 425,699 -
operations
--------------------------------- ------------- ------------ -------------
Total Loss and total
comprehensive income (4,162,024) (95,614) (7,839,398)
================================= ============= ============ =============
Earnings per share
Basic (1.75) (0.26) (3.31)
Diluted (1.75) (0.26) (3.31)
Enquiries:
Fiinu plc via Brazil London (press
Chris Sweeney, Chief Executive Officer office for Fiinu)
www.fiinu.com
SPARK Advisory Partners Limited (Nomad) Tel: +44 (0) 203 368 3550
Mark Brady / Adam Dawes
SP Angel Corporate Finance LLP (Joint Tel: +44 (0) 207 470 0470
Broker)
Matthew Johnson / Charlie Bouverat
(Corporate Finance)
Abigail Wayne / Rob Rees (Corporate
Broking)
Panmure Gordon (UK) Limited (Joint Tel: +44 (0)207 886 2500
Broker)
Stephen Jones / Atholl Tweedie (Corporate
Finance)
Hugh Rich (Corporate Broking)
Brazil London (press office for Fiinu) Tel: +44 (0) 207 785 7383
Joshua Van Raalte / Christine Webb
/ Jamie Lester
About Fiinu
Fiinu, founded in 2017, is a fintech group, that developed
the Plugin Overdraft(R) which is an unbundled overdraft solution
that allows customers to have an overdraft without changing
their existing bank. The underlying bank Independent Overdraft(R)
technology platform is bank agnostic, that therefore enables
it to serve all other banks' customers. Open Banking allows
Fiinu's Plugin Overdraft(R) to attach ("plugin") to the customer's
existing primary bank account, no matter which bank they may
use. Fiinu's vision is built around Open Banking, and it believes
that it increases competition and innovation in UK banking.
For more information, please visit www.fiinu.com
Consolidated statement of comprehensive income
Unaudited Unaudited Audited
half year half year year to
to to 31 Dec 2022
30 Jun 2023 30 Jun 2022 GBP
GBP GBP
--------------------------------- ------------- ------------ -------------
Revenue - - -
Gross profit - - -
Administrative expenses (4,395,412) (983,206) (8,218,903)
Investment revenues 27,851 11,596
Net finance income /
cost (47,924) 69,111 (9,970)
--------------------------------- ------------- ------------ -------------
Loss before taxation (4,415,486) (914,095) (8,217,277)
Income tax income 253,462 - 377,879
--------------------------------- ------------- ------------ -------------
Loss and total comprehensive
income (continuing operations) (4,162,024) (914,095) (7,839,398)
Gain on disposal of investments - 612,377 -
Impairment of goodwill - (219,595) -
and intangible assets
--------------------------------- ------------- ------------ -------------
Profit from discontinued - 425,699 -
operations
--------------------------------- ------------- ------------ -------------
Total Loss and total
comprehensive income (4,162,024) (95,614) (7,839,398)
================================= ============= ============ =============
Earnings per share
Basic (1.75) (0.26) (3.31)
Diluted (1.75) (0.26) (3.31)
Consolidated statement of financial position
30 June 2023 30 June 2022 31 Dec 2022
(unaudited) (unaudited) (audited)
Notes GBP GBP GBP
ASSETS
Non-current assets
Intangible assets 878,639 - 878,639
Property, plant and equipment 209,949 - 276,524
1,088,588 - 1,155,163
Current assets
Trade and other receivables 429,147 388,456 660,078
Current tax recoverable 606,341 - 352,879
Cash and cash equivalents 4,284,783 3,577,276 7,045,161
5,320,361 3,965,732 8,058,118
Total assets 6,408,949 3,965,732 9,213,281
LIABILITIES
Non-Current liabilities
Lease liabilities 23,707 - 93,425
23,707 - 93,425
Current liabilities
Trade and other payables 1,846,203 1,330,817 1,693,603
Lease liabilities 137,381 - 133,331
1,983,584 1,330,817 1,826,934
Total liabilities 2,007,291 1,330,817 1,920,359
Capital and Reserves
Called up share capital 27,474,724 3,758,184 26,513,186
Share premium 9,482,775 5,189,313 9,194,313
Share based payment reserve - 40,218 -
Merger reserve (21,120,782) - (21,120,782)
Retained losses (11,435,059) (6,352,800) (7,283,795)
Total Equity 4,401,658 2,634,915 7,292,922
Total equity and liabilities 6,408,949 3,965,732 9,213,281
Consolidated statement of cash flows
6 months 6 months 12 months
ended ended
30 June 30 June ended
2022 2022
Notes (unaudited) (unaudited)* 31 Dec 2021
GBP GBP (audited)*
GBP
------------------------------ --------- ---- -------------- --------------- --------------
Cash flows from operating
activities
Cash absorbed by operations (4,177,353) (315,938) (4,497,027)
Interest Paid - -
Income taxes refunded - 120,150
-------------- --------------- --------------
Net cash outflow from
operating activities (4,177,353) (315,938) (4,376,877)
Investing activities
Purchase of intangible
assets - (849,076)
Purchase of property,
plant and equipment (8,618) (4,391) (50,457)
Investment loan - (800,000) -
Interest received 27,851 259 11,596
-------------- --------------- --------------
Net cash generated
from investing activities 19,233 (804,132) (887,937)
Financing activities
Proceeds from issue
of shares 1,250,000 3,000,000 8,010,000
Net of cash acquired
on reverse takeover - 3,577,275
Costs of share issue - (197,229) -
Proceeds from borrowings 250,000 (833) 500,000
Payment of lease liabilities (65,668) (55,504) (47,533)
Interest paid (47,924) (1,848) (5,137)
-------------- --------------- --------------
Net cash generated
from financing activities 1,386,408 2,744,586 12,034,605
Net increase/(decrease)
in cash and cash
equivalents (2,771,713) 1,624,516 6,769,791
Cash at beginning of
period 7,045,161 464,232 275,370
-------------- --------------- --------------
Cash at end of period 4,273,448 2,088,748 7,045,161
============== =============== ==============
* Statement of cashflows has been reformatted in line with
audited accounts for 12 months ended 31 Dec 2021
Consolidated statement of changes in equity
Attributable to equity shareholders of the company
Called Share Revaluation Retained Total
up share premium / Merger earnings
capital reserve
GBP GBP GBP GBP GBP
-------------------- ------------- ------------ --------------- --------------- --------------
Balance at
31 December
2022 26,513,186 9,194,313 (21,120,782) (7,293,795) 7,292,922
Period ended
30 June 2023
Loss and total
comprehensive
income for the
year - - - (4,141,265) (4,141,265)
Transactions
with owners
in their capacity
as owners:
Issue of share
capital 961,722 288,462 - - 1,250,000
Balance at
30 June 2023 27,474,724 9,482,775 (21,120,782) (11,435,059) 4,401,658
============= ============ =============== =============== ==============
NOTES TO THE FINANCIAL STATEMENTS
Financial information contained in this document does not
constitute statutory accounts within the meaning of section 434 of
the Companies Act 2006 ("the Act"). The statutory accounts for the
year ended 31 December 2022 have been filed with the Registrar of
Companies. The report of the auditors confirmed that the financial
statements:
-- give a true and fair view of the state of the Group's and of
the Parent Company's affairs as at 31 December 2022 and of the
Group's loss for the period then ended;
-- have been properly prepared in accordance with UK-adopted
international accounting standards and, as regards the parent
company financial statements, as applied in accordance with the
provisions of the Companies Act 2006; and
-- have been prepared in accordance with the requirements of the Companies Act 2006.
The auditors conducted the audit in accordance with
International Standards on Auditing (UK) (ISAs (UK)) and applicable
law. Our responsibilities under those standards are further
described in the "Auditor's responsibilities for the audit of the
financial statements" section of our report. We are independent of
the Group and the Parent Company in accordance with the ethical
requirements that are relevant to our audit of the financial
statements in the UK, including the Financial Reporting Council's
('FRC') Ethical Standard as applied to listed entities and public
interest entities and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe
that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
The auditors drew the attention to the financial statements,
which indicates that when assessing the Group and Parent Company's
ability to continue as a going concern, the directors have
concluded that a material uncertainty exists in relation to the
Company's ability to raise the capital required to support its
subsidiaries, ('Fiinu 2 Limited's'), year one of operations post
approval from the Prudential Regulatory Authority ('PRA') and the
Financial Conduct Authority ('FCA') to operate as a bank without
restrictions, following the re-submission of the Bank's banking
application.
The financial information for the six months ended 30 June 2023
and 30 June 2022 are unaudited.
This announcement was approved by the Board on 16 August
2023.
1. Reporting entity
Fiinu Plc (the "Company" or, the "Group") is a public company
limited by shares incorporated in England and Wales. The registered
office is Meadows Business Park, Blackwater, Camberley, GU17 9AB.
The consolidated financial statements of the Company as at 30 June
2023 and for the six months ended 30 June 2022 comprise the Company
and its subsidiaries (together referred to as the "Group").
Fiinu, founded in 2017, is a fintech group, that developed the
Plugin Overdraft(R) which is an unbundled overdraft solution that
allows customers to have an overdraft without changing their
existing bank. The underlying bank Independent Overdraft(R)
technology platform is bank agnostic, that therefore enables it to
serve all other banks' customers. Open Banking allows Fiinu's
Plugin Overdraft(R) to attach ("plugin") to the customer's existing
primary bank account, no matter which bank they may use. Fiinu's
vision is built around Open Banking, and it believes that it
increases competition and innovation in UK banking.
2. Basis of preparation
The consolidated financial information has been prepared in
accordance with UK adopted international accounting standards. The
consolidated financial statements are presented in pounds sterling,
the functional currency of the Company and presentation currency of
the Group.
The interim financial information is made up to 30 June 2023.
Where necessary, adjustments are made to the financial information
of subsidiaries to bring the accounting policies used into line
with those used by other members of the Group.
All intra-Group transactions, balances and unrealised gains on
transactions between Group companies are eliminated on
consolidation. Unrealised losses are also eliminated unless the
transaction provides evidence of an impairment of the asset
transferred.
Subsidiaries are consolidated in the Group's financial
statements from the date that control commences until the date that
control ceases.
Acquisitions are accounted for using the acquisition method. the
cost of an acquisition is measured at fair value at the date of
exchange of the consideration. Identifiable assets and liabilities
of the acquired business are recognised at their fair value at the
date of acquisition. To the extent that the cost of an acquisition
exceeds the fair value of the net assets acquired the difference is
recorded as goodwill. Where the fair value of the net assets
acquired exceeds the cost of an acquisition the difference is
recorded in profit and loss.
The Group has chosen not to adopt IAS 34 "Interim Financial
Statements" in preparing the interim financial information.
3. Significant accounting policies
The accounting policies set out in detail in note 2 of the
Group's consolidated financial statements to 31 December 2022 have
been applied consistently to these unaudited financial statements
to 30 June 2023There are no new standards or amendments to
standards which are material to the accounts for the half year
ended 30 June 2023.
4. Events in the six months ended 30 June 2023
Business Highlights
-- The Company continues to source the additional funding
required for it to re-apply to the regulators to re-start its
banking licence application
-- April 2023: Successful completion of the technology build of the Plugin Overdraft(R)
-- July 2023: Cost reductions initiated within subsidiaries
Fiinu 2 Limited and Fiinu Holdings Limited, including providing
notice to reduce staffing levels and re-negotiation or termination
of agreements with suppliers
-- March 2023: Raised GBP0.5m of new ordinary share capital by
immediate subscription to new and existing shareholders
-- April 2023: Raised GBP0.75m of new ordinary share capital by
exercising the right to convert the drawn down loans with Dewscope
Limited into equity
-- April 2023: Application to withdraw its banking licence with
aim to re-apply after a short period of two to three months once
full funding commitment is secured
-- Other options are also being considered by the Board, which
may include a change of strategy and/or a sale of the Group's
technology assets should the additional funding commitment it
requires not be forthcoming
5. Share capital
Allotted, issued and fully paid:
Number of shares Nominal value
GBP
Ordinary shares with nominal value
of GBP0.10 per share as at:
31 December 2022 265,397,660 26,538,766
Issued in the half year
----------------- --------------
30 June 2023 275,241,062 27,524,106
----------------- --------------
There are no restrictions on the transfer of shares in Fiinu
Plc. All shares carry equal voting rights.
FORWARD LOOKING STATEMENTS
This document contains certain forward-looking statements which
reflect the knowledge and information available to the Company
during the preparation and up to the publication of this document.
By their very nature, these statements depend upon circumstances
and relate to events that may occur in the future thereby involving
a degree of uncertainty. Although the Group believes that the
expectations reflected in these statements are reasonable, it can
give no assurance that these expectations will prove to have been
correct. Given that these statements involve risks and
uncertainties, actual results may differ materially from those
expressed or implied by these forward-looking statements.
The Group undertakes no obligation to update any forward-looking
statements whether because of new information, future events or
otherwise.
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IR GRGDIGGBDGXR
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August 17, 2023 03:04 ET (07:04 GMT)
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