TIDMPBEE
RNS Number : 8746K
PensionBee Group plc
31 August 2023
PensionBee Group plc
Incorporated in England and Wales
Registration Number: 13172844
LEI: 2138008663P5FHPGZV74
ISIN: GB00BNDRLN84
Interim Results
For the six months ended 30 June 2023
PensionBee Group plc ('PensionBee' or the 'Company'), a leading
online pension provider, today announces interim results for
the six month period ended 30 June 2023 (1H 2023).
The Company is pleased to announce that it has delivered strong
financial and operational performance during the first half of
the year, with high levels of growth achieved across key metrics,
in line with the trading update released on 20 July 2023.
Performance Overview
* Revenue increased by 32% to GBP10.9m (1H 2022: GBP8.3m)
* Profit/(Loss) before Tax was GBP(9.2)m (1H 2022:
GBP(16.9)m)
* Adjusted EBITDA was GBP(7.9)m (1H 2022: GBP(14.9)m)
* Basic Earnings per Share was (4.06)p (1H 2022:
(7.54)p)
* Assets under Administration ('AUA') increased by 38%
year on year to GBP3,704m (1H 2022: GBP2,676m)
* Invested Customers ('IC') increased by 33% to 211,000
(1H 2022: 159,000)
* Customer Retention Rate and AUA Retention Rate were
both stable at >95% (1H 2022: >95%)
* Excellent Trustpilot score of 4.6 (1H 2022: 4.6 )
* Cash position of GBP14m (1H 2022: GBP29m)
Romi Savova, Chief Executive Officer of PensionBee, commented:
"We are proud to have helped an increasing number of customers
take control of their retirement planning and prepare for a happy
future. PensionBee's strong results and ongoing growth have positioned
us well on track to deliver monthly Adjusted EBITDA profitability
by the end of the year. The scalability of our technology platform
drives margin improvement, and we are looking forward to further
innovating and evolving with our customers as we champion their
voices in the industry.
We are confident that our focus on serving and delighting customers
will allow us to continue to grow and capture market share."
Financial Highlights*
For the 6-month Period Ending
Jun-2023 Jun-2022 YoY
=========== =========== ========
Revenue (GBPm) 10.9 8.3 32%
=========== =========== ========
Profit/(Loss) before Tax (9.2) (16.9) 46%
=========== =========== ========
Adjusted EBITDA (GBPm)** (7.9) (14.9) 47%
=========== =========== ========
Adjusted EBITDA Margin (% of
Revenue)** (73)% (181)% 108ppt
=========== =========== ========
Basic and Diluted Earnings per
Share (4.06)p (7.54)p 86%
=========== =========== ========
Non-Financial Highlights *
As at Period End
Jun-2023 Jun-2022 YoY
========= ========= ========
AUA (GBPm) 3,704 2,676 38%
========= ========= ========
AUA Retention Rate (% of AUA) >95% >95% stable
========= ========= ========
Invested Customers ('IC') (thousands) 211 159 33%
========= ========= ========
Customer Retention Rate (% of >95% >95% stable
IC)
========= ========= ========
Cost per Invested Customer (GBP) 247 260 (5)%
========= ========= ========
Realised Revenue Margin 0.65% 0.63% +1.4bps
========= ========= ========
* See Definitions section.
** PensionBee's KPIs include alternative performance measures
('APM's), which are indicated with a double asterisk. APMs
are not defined by International Financial Reporting Standards
('IFRS') and should be considered together with the Group's
IFRS measurements of performance. PensionBee believes APMs
assist in providing greater insight into the underlying
performance of PensionBee and enhance comparability of information
between reporting periods.
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*** As highlighted in the Annual Report and Financial Statements
2022 the Company outlined from 2023 it would retire from
its regular reporting framework the following Financial
Performance Measures: Annual Run Rate ('ARR') Revenue to
primarily focus on the Revenue metric as the Company reaches
profitability. Non-Financial Performance Measures: Registered
Customers ('RC'), Same Year RC:IC Conversion and Active
Customers ('AC') These metrics were retired to focus on
the Invested Customers that generate AUA. Additionally,
Contractual Revenue Margin (% of AUA) was retired and Realised
Revenue Margin introduced.
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Contacts
PensionBee press@pensionbee.com
Rachael Oku
Laura Dunn-Sims
---------------------
Forward-Looking Statements
Statements that are not historical facts, including statements
about PensionBee's or management's beliefs and expectations,
are forward-looking statements. The interim results contain forward-looking
statements, which by their nature involve substantial risks and
uncertainties as they relate to events and depend on circumstances
which will occur in the future and actual results and developments
may differ materially from those expressly stated or otherwise
implied by these statements.
These forward-looking statements are statements regarding PensionBee's
intentions, beliefs or current expectations concerning, among
other things, its results of operations, financial condition,
prospects, growth, strategies and the industry and markets within
which it operates.
These forward-looking statements relate to the date of these
interim results and PensionBee does not undertake any obligation
to publicly release any revisions to these forward-looking statements
to reflect events or circumstances after the date of the interim
results.
CEO's Report
We exist to make pensions simple so that everyone can look forward
to a happy retirement. Our aspiration is to build a lifetime
relationship with our customers, generating predictable and scalable
revenue for our company and for our investors.
We are very pleased to have delivered strong financial and operational
performance for the first half of 2023, driven by continued momentum
in the growth rates of our Invested Customer base, Assets under
Administration ('AUA') and Revenue. Our business has continued
to demonstrate resilience, strength and substantial growth, set
against a backdrop of continued challenging global capital markets,
heightened geopolitical risk and an extensive cost of living
crisis that has continued to impact everyone across the UK. All
this of course, means that the need for retirement planning and
pension ownership has never been greater.
The first half of 2023 started strongly and we demonstrated our
continued ability to grow, adding GBP469m of Net Flows (1H 2022:
GBP481m) from new and existing customers reaching GBP3.7bn of
AUA by the end of June (H1 2022: GBP2.7bn).
We achieved strong momentum in customer growth, with efficient
new customer acquisition having added 28,000 Invested Customers
(H1 2022: 41,000), representing GBP365m of Net Flows for the
first half of the year (H1 2022: GBP353m). Existing customers
also continued to accumulate pension savings with us, representing
GBP104m of AUA over the period (H1 2022: GBP128m). Our customers'
pension assets also benefited from market appreciation in the
first half, accounting for the balance of asset growth.
We delivered this high customer growth whilst maintaining excellent
customer satisfaction, recording a sustained Customer Retention
Rate of 97% over the period (H1 2022: 97%). We have also sought
to balance our growth ambition with our expectations of achieving
monthly Adjusted EBITDA profitability by the end of 2023.
Our results are supported by our ability to execute and advance
our strategic goals. Our customer-centric proposition, led by
product and technological innovation, excellent customer service
as evidenced by our Excellent Trustpilot score of 4.6 out of
5 (based on 9,128 reviews), and transparent and straightforward
fees, has continued to resonate well in the enormous UK market
of pension savers. Our ability to efficiently spend on marketing
has seen us maintain our household brand name status and has
supported new customer growth with a declining customer acquisition
cost.
We look forward to further advancing our strategy, growing our
market share and fulfilling our ambition to help everyone look
forward to a happy retirement.
Overview
We maintained our strong growth momentum in the first half of
2023. AUA increased by 38% to GBP3,704m (1H 2022: GBP2,676m),
led by an increase in Invested Customers of 33% to 211,000 (1H
2022: 159,000). This resulted in an increase in Revenue of 32%
to GBP10.9m (1H 2022: GBP8.3m) across the same period.
Profit/(Loss) before Tax narrowed to GBP(9.2)m (1H 2022: GBP(16.9)m)
reflecting planned investment in marketing, in the technology
platform and in our people, to drive rapid and efficient growth.
Accordingly, Adjusted EBITDA narrowed to GBP(7.9)m (1H 2022:
GBP(14.9)m) and the Adjusted EBITDA Margin narrowed to (73)%
(1H 2022: (181)%), demonstrating the operating leverage achieved.
Advancing our Strategic Goals
Our mission is to make pensions simple so that everyone can look
forward to a happy retirement. We have continued to successfully
execute our five-point strategy, which supports our mission,
and which drives our rapid and sustainable growth:
Efficient investment in customer acquisition and brand awareness
During the first half of the year, we spent GBP6.8m on marketing
(1H 2022: GBP12.4m), taking our cumulative marketing expenditure
to more than GBP50m, supporting brand building and customer acquisition.
We expect to continue investing in brand awareness and the maintenance
of ongoing household brand name status through the renewal of
our partnership with Brentford Football Club, becoming the left
sleeve sponsor of the Men's first team and the 'front of shirt'
sponsor for the B team, Academy and Women's team.
We have continued to apply our data-driven, multi-channel approach
to successfully reach new customers, bringing educational initiatives
to customers in ways which increase appeal, for example, through
roadshows, podcasts and new channels such as TikTok.
The Cost per Invested Customer ('CPIC') has continued to demonstrate
a downward trajectory, in line with expectations, given the depth
of our marketing capability in efficient customer acquisition
and the substantial brand investment made to date.
As we consider marketing initiatives for the rest of the year,
we will actively focus on further reducing our CPIC, together
with nurturing the conversion of our customer funnel to grow
our Invested Customers.
Leadership in product innovation
During the first half of the year, we continued to develop our
product offering for the benefit of our customers, incrementally
rolling out new features to enable greater customer engagement.
Our data shows that engaged customers are more likely to grow
their pensions with us and are therefore more likely to enjoy
the type of retirement they deserve.
New features included improvements to enable customers to access
and find our helpful content (searchable FAQs and enhanced help
functionality) and a new online tax relief calculator designed
to encourage customers to make the most of their pension contributions
ahead of the tax year-end. While customers can now read our content
in the app, they will soon be served personalised content features
based on our predictions of their interests, to help them make
more of their money including by educating them on helpful complements
to their pension, such as life insurance.
We recently launched a partnership with LifeSearch to help our
customers obtain a range of insurance products including life
and critical illness cover, enabling them to continue to save
for a happy retirement even if the worst happens. So far initial
customer demand has been positive and we look forward to seeing
this progress.
Investment in and development of an industry leading technology
platform
We have continued to invest in our technology capability over
the first half of the year in support of our growth ambitions.
We have invested in the scalability of our technology through
a focus on internal automation, efficiency, security and pension
transfer improvements to support productivity, as demonstrated
by a 12% improvement in the Invested Customers per Staff Member
productivity metric across the first half of the year (1H 2022:
35%).
We have continued to explore and adopt artificial intelligence
tooling within our departments, using it for initial content
generation, project research and coding problem resolution. We
are increasingly integrating our data platform within our daily
product management operations, linking core KPIs to projects
to ensure our multidisciplinary development teams remain productive
and impactful.
Finally, we continued to implement cyber security tools and best
practices to keep our customers' data safe. We have reinforced
a culture of security awareness through increasing standardisation,
monitoring and automation in information security operations
and compliance.
Focus on excellent customer service
We have continued our relentless focus on the provision of excellent
customer service to create the best pension experience possible
for our customers, leaving them delighted.
We are proud to have delivered excellent customer support, as
demonstrated by rapid response times, with live chat and phone
waiting times of 16 and 22 seconds respectively. Consequently,
we have continued to enjoy high ratings from our customers, giving
our team great purpose and inspiration. We pay close attention
to our Trustpilot and app store ratings, which serve as an indicator
of customer satisfaction. We are pleased to have maintained our
Excellent ratings across both, with a 4.6 Trustpilot rating having
been achieved from 9,128 customer reviews (1H 2022: 4.6 ).
Ensuring excellent levels of customer satisfaction is central
to our ambition of retaining and serving our customers throughout
their lifetimes. We demonstrated the continued strength of our
customer value proposition by maintaining a Customer Retention
Rate of 97% for the first half of the year. It is the high levels
of recurring revenues that are generated as a result of these
high customer retention levels, combined with the scalability
of our technology platform, that underpin the generation of operating
leverage over time.
Focus on investment solutions designed for customers
We have continued to remain focused on our investment range,
keeping abreast of new industry developments, ensuring that we
deliver value for money and innovating and adapting our products
to suit the evolving needs of our customers.
Our ongoing programme of engagement with our asset management
partners helps to determine the optimal product range. We are
proud to work with the largest money managers in the world, who
help us give our customers peace of mind.
Over the first half of the year, we successfully launched our
Impact Plan, which invests exclusively in companies that seek
to solve the world's great social and environmental problems,
aligning with PensionBee's focus on using its influence to respond
to customer needs. With the addition of the Impact Plan, we are
confident we have the right investment range to serve the mass
market of consumers.
Regulatory Developments
We are active in the industry as a supporter of consumer rights
and we continue to advocate for greater levels of transparency,
easier switching and fairer charging across all pension products.
During the first half of the year, we implemented the Financial
Conduct Authority's ('FCA') Consumer Duty.
PensionBee's vision is customer focused and customers have been
at the heart of everything PensionBee does since its inception.
This culture is woven into the fabric of our approach across
all departments. Our five company values - Honesty, Innovation,
Love, Quality and Simplicity - provide a framework that guides
our decision-making, with particular regard given to how our
values shape the way we interact with our customers. The FCA's
new Consumer Duty sets higher and clearer consumer protection
standards across financial services through an overarching principle
that requires firms to act to deliver good outcomes for retail
customers.
The FCA's Consumer Principle is supported by three cross-cutting
rules, requiring that firms must act in good faith towards customers,
avoid foreseeable harm to customers and enable and support customers
to pursue their financial objectives. Consumer Duty outcomes
relate to crucial elements of the firm-consumer relationship:
consumers should receive communications they can understand,
products and services should meet their needs and offer fair
value, and consumers should get the support they need when they
need it.
While the Consumer Duty is well embedded in our general approach
to business and to our customers, we invested ample time in enhancing
our documentation, training our team and creating automated metric
reporting to monitor good consumer outcomes and avoid foreseeable
harm, in line with the duty.
We remain supportive of the initiatives of the FCA, the Department
for Work and Pensions and the Pensions Regulator, leading to
improvements in the pension landscape for consumers. We believe
the overall direction of reforms supports our approach to putting
customers at the heart of what we do, our business model, our
mission and our vision.
Dividend
In line with our stated dividend policy, the Company does not
intend to pay any dividends as we continue to invest in growth
and execute our strategy. Whilst the Company has not paid dividends
since incorporation, it intends to revisit its dividend policy
in future years and may revise its dividend policy from time
to time.
Outlook
We remain confident in our potential for continued growth and
profitability, due to our ability to attract new customers that
generate growth in recurring revenue through our scalable technology
platform.
We are pleased to reiterate the guidance previously provided
at the time of the 2022 full year results. Our cash balance of
GBP14m leaves us well-placed to pursue a c.2% market share target
of the substantial GBP700bn UK transferable pensions market over
the next 5-10 years.
We remain on track to further reduce Cost per Invested Customer,
expecting to achieve monthly Adjusted EBITDA profitability by
the end of 2023 and ongoing Adjusted EBITDA profitability for
the full year 2024. We expect to achieve long-term EBITDA margins
in excess of 50%, driven by the scalability of our technology
platform. This is supported by the continued positive momentum
in our trading performance and growth in key metrics such as
customer growth and AUA.
We will continue to support the pursuit of healthy long-term
returns for our customers' pensions and the health of our environment,
by promoting good corporate behaviour. We will also continue
to use our corporate voice to amplify the voices of our customers
across the UK, standing up for their consumer rights, and enabling
them to have better, more transparent pension products.
We will continue to work tirelessly towards our mission to make
pensions simple so that everyone can look forward to a happy
retirement.
Romi Savova
Chief Executive Officer
30 August 2023
Financial Review
We had a strong start to 2023 as we balanced our growth ambition
with our firm profitability target.
Our strong growth delivery over the first half of 2023 was underpinned
by a combination of new customer acquisition, asset growth from
existing customers(1) and recovering global equity markets. Over
the first half of the year, Invested Customers grew by 33% to
211,000 (1H 2022: 159,000), Assets under Administration ('AUA')
increased by 38% to GBP3,704m (1H 2022: GBP2,676m) and Revenue
increased by 32% to GBP10.9m (1H 2022: GBP8.3m).
In addition to driving strong growth, we have remained firmly
committed to achieving our Adjusted EBITDA profitability target
by the end of 2023. As a result, we focused on delivering 32%
Revenue growth over 1H 2023 while reducing our cost base by 19%
to GBP18.8m (1H 2022: GBP23.2m).
Summary Financial Highlights*
For the 6-month Period Ending
Jun-2023 Jun-2022 YoY
======== ======== ======================
Revenue (GBPm) 10.9 8.3 32%
======== ======== ======================
Money Manager Costs (GBPm) (1.6) (1.4) 13%
======== ======== ======================
Technology Platform Costs &
Other Operating Expenses (GBPm)(2,3) (10.3) (9.4) 10%
======== ======== ======================
Marketing Costs (GBPm) (6.8) (12.4) (45)%
======== ======== ======================
Operating Costs (18.8) (23.2) (19)%
======== ======== ======================
Adjusted EBITDA (GBPm)** (7.9) (14.9) 47%
======== ======== ======================
Adjusted EBITDA Margin (% of
Revenue)** (73)% (181)% 108 ppt
======== ======== ======================
* See Definitions section.
** PensionBee's KPIs include alternative performance measures
('APMs'), which are indicated with a double asterisk. APMs
are not defined by International Financial Reporting Standards
('IFRS') and should be considered together with the Group's
IFRS measurements of performance. PensionBee believes APMs
assist in providing greater insight into the underlying performance
of PensionBee and enhance comparability of information between
reporting periods.
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(1) Existing customers are defined as customers acquired from
2016 to 2022.
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(2) Other Operating Expenses comprise Administrative Costs and
auditor's remuneration.
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(3) Technology Platform & Other Costs comprise Employee Benefits
Expense (excluding Share-based Payment), technology and operations
costs and Other Operating Expenses.
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Business Performance
Customers
As at Period End
Jun-2023 Jun-2022 YoY
========= ========= =======
Invested Customers ('IC') (thousands) 211 159 33%
========= ========= =======
Customer Retention Rate (% >95% >95% stable
of IC)
========= ========= =======
We continued to invest in our growth over the first half of 2023
while focusing on marketing efficiency. Over the first six months
of the year, we spent GBP6.8m in marketing (1H 2022: GBP12.4m)
to acquire 28,000 (1H 2022: 41,000) new Invested Customers at
a reduced Cost per Invested Customer. Invested Customers increased
to 211,000 (1H 2022: 159,000), representing an increase of 33%.
The Customer Retention Rate remained above 95% (1H 2022: >95%),
consistent with our historical performance levels, reflecting
trends in general consumer behaviour around long-term saving
products and importantly underscoring our customers' continued
satisfaction with the PensionBee product and customer service
proposition.
Assets under Administration
As at Period End/
For the 6-month Period Ending
Jun-2023 Jun-2022 YoY
============ =========== ========
Opening AUA (GBPm) 3,025 2,587 17%
============ =========== ========
Net Flows from New Customers
(GBPm) 365 353 3%
============ =========== ========
Net Flows from Existing Customers
(GBPm) 104 128 (19)%
============ =========== ========
Net Flows (GBPm) 469 481 (3)%
============ =========== ========
Pre-Market Impact AUA (GBPm) 3,494 3,069 14%
============ =========== ========
Market Movement and Other (GBPm) 210 (392) n/a
============ =========== ========
Closing AUA (GBPm) 3,704 2,676 38%
============ =========== ========
AUA Retention Rate (% of AUA) >95% >95% stable
============ =========== ========
During the first half of 2023, PensionBee continued to demonstrate
strong growth momentum. As at the end of June we recorded GBP3.7bn
of AUA (1H 2022: GBP2.7bn), an increase of 38% year-on-year.
GBP678m of AUA was generated over the first half of the year,
surpassing last year's equivalent of GBP89m over the same period.
The key growth drivers were Net Flows from New Customers, Net
Flows from Existing Customers and Market Movement and Other.
Net Flows from New Customers represented the majority of AUA
growth and accounted for GBP365m of Net Flows (1H 2022: GBP353m).
This strong growth was achieved with a 45% reduction in marketing
investment to GBP6.8m (1H 2022: GBP12.4m) underscoring our household
brand name status and the strength of our data-led new customer
acquisition capabilities.
Net Flows from Existing Customers further drove AUA growth as
customers continued to grow their pension savings with PensionBee.
Net Flows from Existing Customers reached GBP104m in the first
six months of the year (1H 2022: GBP128m). Over the first half
of the year, we saw slightly lower Net Flows from Existing Customers
compared to the same period last year which can be attributed
to younger customer acquisition in the prior year as well as
normalising outflow figures this year which reached levels we
observed in 2021. PensionBee's commitment to continuous product
development drives engagement with our customer which is reflected
in our Retention Rate of >95% (1H 2022: >95%). Our in-app content
and tools such as the state pension calculator deliver useful
insights to our customers.
As is customary in the industry, pensions are invested in capital
markets and therefore, the performance of the market is a driver
of movements in AUA. As markets regained some stability after
a volatile period last year, we saw market growth account for
GBP210m of the overall AUA growth in the first half of the year
(1H 2022: GBP(392)m).
Financial Performance
Revenue
As at Period End/
For the 6-month Period Ending
Jun-2023 Jun-2022 YoY
=========== =========== =========
Realised Revenue Margin 0.65% 0.63% +1.4bps
=========== =========== =========
Revenue (GBPm) 10.9 8.3 32%
=========== =========== =========
The Realised Revenue Margin improved to 0.65% (1H 2022: 0.63%)
which was due to a mix effect thanks to our recent launch of
the Impact Plan priced at 0.95%.
Profitability Metrics
For the 6-month Period Ending
Jun-2023 Jun-2022 YoY
=========== =========== ========
Profit/(Loss) before Tax (GBPm) (9.2) (16.9) 46%
=========== =========== ========
Adjusted EBITDA (GBPm) (7.9) (14.9) 47%
=========== =========== ========
Adjusted EBITDA Margin (% of
Revenue) (73)% (181)% 108ppt
=========== =========== ========
Our primary profitability metric is Adjusted EBITDA, which captures
Advertising and Marketing Expenses, but excludes Share-based
Payments and Transaction Costs.
We have a firm commitment to reach our monthly Adjusted EBITDA
profitability target by the end of 2023. As a result of strict
cost discipline and strong Revenue growth figures, we delivered
an improvement of 108 percentage points of our Adjusted EBITDA
Margin to (73)% (1H 2022: (181)%). This places us in a strong
position to achieve our year end 2023 monthly Adjusted EBITDA
profitability target.
For the 6-month Period Ending
Jun-2023 Jun-2022 YoY
============ =========== =======
Money Manager Costs (GBPm) (1.6) (1.4) 13%
============ =========== =======
Employee Benefits Expense (excluding
Share-based Payment) (GBPm) (6.1) (4.5) 34%
============ =========== =======
Other Operating Expenses (GBPm) (4.3) (4.8) (12)%
============ =========== =======
Technology Platform Costs and
Other Operating Expenses (GBPm) (10.3) (9.4) 10%
============ =========== =======
Money Manager Costs increased to GBP1.6m (1H 2022: GBP1.4m)
at a lower rate than Revenue growth, reflecting realised cost
reductions.
Employee Benefits Expense increased to GBP6.1m (1H 2022: GBP4.5m),
primarily driven by a run-rate impact of the headcount increase
in the second half of 2022. Headcount figures over the first
half of 2023 remained relatively unchanged. Overall, our total
workforce increased to 209 as at 30 June 2023 from 208 at the
end of 2022.(6)
Other Operating Expenses narrowed to GBP4.3m (1H 2022: GBP4.8m),
reflecting the scalability of our technology platform due to
prior investments in capabilities. We have continued to invest
in enhancing our scalability with an emphasis on improving our
internal automation to support productivity, including the streamlining
of our provider processes. This is evidenced by an improvement
in the Invested Customers per Staff Member metric from 919 in
the first half of 2022 to 1,026 within the same period this year,
demonstrating a 12% increase in productivity (1H 2022: 35%).(7)
(6) Total workforce of 209 as of 30 June 2023, includes 205 UK
employees and four non-UK contractors. Total workforce as of
31 December 2022 includes 204 UK employees and four non-UK contractors.
(7) Invested Customers per Staff Member calculated using LTM
average for total workforce. Management information as at 30
June 2023.
Marketing Costs
As at Period End/
For the 6-month Period Ending
Jun-2023 Jun-2022 YoY
============ ============ =======
Cost per Invested Customer
(CPIC) (GBP) 247 260 (5)%
============ ============ =======
Marketing Costs (GBPm) (6.8) (12.4) (45)%
============ ============ =======
Thanks to our household brand name and data-led new customer
acquisition capabilities, we were able to deliver strong growth
metrics with a marketing budget that was reduced by 45% year-on-year
to GBP6.8m (1H 2022: GBP12.4m). Cost per Invested Customer numbers
therefore improved to GBP247 per Invested Customer for June 2023
compared to GBP260 per Invested Customer June 2022.
Other Costs
For the 6-month Period Ending
Jun-2023 Jun-2022 YoY
=========== =========== ========
Share-based Payment (GBPm) (1.1) (1.1) (1)%
=========== =========== ========
Transaction Costs (GBPm) - (0.7) (100)%
=========== =========== ========
Taxation (GBPm) 0.1 0.2 (21)%
=========== =========== ========
Share-based Payment costs remained stable during the period
GBP(1.1)m (1H 2022: GBP(1.1)m).
Transaction Costs There were no exceptional costs incurred in
1H 2023 nil (1H 2022: GBP(0.7)m). The costs outlined in the prior
period are in relation to the Company's transition to the Premium
Segment of the Main Market of the London Stock Exchange and primarily
consisted of fees and expenses.
Finance Costs included fees associated with the capitalisation
of lease obligations in accordance with IFRS 16. There were no
significant Finance costs recorded nil (1H 2022: nil).
Taxation was enhanced tax credits in relation to routine Research
and Development refunds GBP0.1m (1H 2022: GBP0.2m). No deferred
tax asset was recognised for the carried forward losses.
Basic Earnings per Share
Basic (and Diluted) Earnings per Share was (4.06)p for 1H 2023
(1H 2022: (7.54)p). This decreased in line with the increase
in Loss after Tax.
Regulatory Capital and Financial Position
PensionBee Limited, a subsidiary of the Company, is authorised
and regulated by the Financial Conduct Authority and therefore
adheres to capital requirement set by the regulator. As of June
2023, the capital resources stood at GBP12.8m as compared to
a capital resource requirement of GBP1.4m, resulting in a coverage
of 9x.
As of June 2023, the cash and cash equivalents balance was GBP14m
(1H 2022: GBP29m).
Christoph J. Martin
Chief Financial Officer
30 August 2023
Responsibility Statement We confirm that to the best of our
knowledge:
* the condensed set of financial statements, prepared
in accordance with IAS 34 'Interim Financial
Reporting', give a true and fair view of the assets,
liabilities, financial position and profit or loss of
the group and the undertakings included in the
consolidation taken as a whole as required by DTR
4.2.4R;
* the interim management reports includes a fair review
of the information required by DTR 4.2.7R (indication
of important events and their impact during the first
six months and description of principal risks and
uncertainties for the remaining six months of the
year); and
* the interim management report includes a fair review
of the information required by DTR 4.2.8R (disclosure
of related parties' transactions and changes
therein).
By order of the Board.
Independent Review Report to PensionBee Group plc
Conclusion
We have been engaged by the company to review the condensed set
of financial statements in the half-yearly financial report for
the six months ended 30 June 2023 which comprises the condensed
interim consolidated statement of comprehensive income, the condensed
interim consolidated statement of financial position, the condensed
interim consolidated statement of changes in equity, the condensed
interim consolidated statement of cash flows and related notes
1 to 15.
Based on our review, nothing has come to our attention that causes
us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended
30 June 2023 is not prepared, in all material respects, in accordance
with United Kingdom adopted International Accounting Standard
34 and the Disclosure Guidance and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International Standard
on Review Engagements (UK) 2410 (Revised) "Review of Interim
Financial Information Performed by the Independent Auditor of
the Entity" issued by the Financial Reporting Council for use
in the United Kingdom (ISRE (UK) 2410 (Revised)). A review of
interim financial information consists of making inquiries, primarily
of persons responsible for financial and accounting matters,
and applying analytical and other review procedures. A review
is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and consequently
does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit.
Accordingly, we do not express an audit opinion.
As disclosed in note 2, the annual financial statements of the
group are prepared in accordance with United Kingdom adopted
international accounting standards. The condensed set of financial
statements included in this half-yearly financial report has
been prepared in accordance with United Kingdom adopted International
Accounting Standard 34, "Interim Financial Reporting".
Conclusion Relating to Going Concern
Based on our review procedures, which are less extensive than
those performed in an audit as described in the Basis for Conclusion
section of this report, nothing has come to our attention to
suggest that the directors have inappropriately adopted the going
concern basis of accounting or that the directors have identified
material uncertainties relating to going concern that are not
appropriately disclosed.
This Conclusion is based on the review procedures performed in
accordance with ISRE (UK) 2410 (Revised); however future events
or conditions may cause the entity to cease to continue as a
going concern.
Responsibilities of the Directors
The directors are responsible for preparing the half-yearly financial
report in accordance with the Disclosure Guidance and Transparency
Rules of the United Kingdom's Financial Conduct Authority.
In preparing the half-yearly financial report, the directors
are responsible for assessing the group's ability to continue
as a going concern, disclosing as applicable, matters related
to going concern and using the going concern basis of accounting
unless the directors either intend to liquidate the company or
to cease operations, or have no realistic alternative but to
do so.
Auditor's Responsibilities for the Review of the Financial Information
In reviewing the half-yearly financial report, we are responsible
for expressing to the company a conclusion on the condensed set
of financial statements in the half-yearly financial report.
Our Conclusion, including our Conclusion Relating to Going Concern,
are based on procedures that are less extensive than audit procedures,
as described in the Basis for Conclusion paragraph of this report.
Use of our Report
This report is made solely to the company in accordance with
ISRE (UK) 2410 (Revised). Our work has been undertaken so that
we might state to the company those matters we are required to
state to it in an independent review report and for no other
purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the company, for
our review work, for this report, or for the conclusions we have
formed.
Deloitte LLP
Statutory Auditor
Birmingham
United Kingdom
30 August 2023
Condensed Consolidated Statement of Comprehensive Income
For the Period from 1 January 2023 to 30 June 2023
-------------------------------------------------------------------------------------------------
Unaudited Unaudited
six months six months
to 30 June to 30 June
2023 2022
------------------------------------------------------------------ ------------ ---------------
Note GBP 000 GBP 000
------------------------------------------------------------------ ------------ ---------------
Revenue 4 10,868 8,258
------------------------------------------------------------------ ------------ ---------------
Employee Benefits Expense
(excluding Share-based Payment) (6,090) (4,534)
------------------------------------------------------------------ ------------ ---------------
Share-based Payment (1,133) (1,148)
------------------------------------------------------------------ ------------ ---------------
Depreciation Expense (143) (139)
------------------------------------------------------------------ ------------ ---------------
Advertising and Marketing (6,818) (12,357)
------------------------------------------------------------------ ------------ ---------------
Other Expenses (5,875) (6,279)
------------------------------------------------------------------ ------------ ---------------
Listing Costs - (687)
------------------------------------------------------------------ ------------ ---------------
Operating Profit/(Loss) (9,191) (16,886)
------------------------------------------------------------------ ------------ ---------------
Finance Costs (19) (24)
------------------------------------------------------------------ ------------ ---------------
Profit/(Loss) before Tax (9,210) (16,910)
------------------------------------------------------------------ ------------ ---------------
Taxation 6 137 174
------------------------------------------------------------------ ------------ ---------------
Profit/(Loss) for the Period (9,073) (16,736)
------------------------------------------------------------------ ------------ ---------------
Total Comprehensive Profit/(Loss)
for the Period wholly attributable
to Equity Holders of the Parent Company (9,073) (16,736)
------------------------------------------------------------------ ------------ ---------------
Earnings per Share (pence per Share)
------------------------------------------------------------------ ------------ ---------------
Basic and Diluted (4.06) (7.54)
------------------------------------------------------------------ ------------ ---------------
The above results were derived from continuing operations.
Notes 1 to 15 form an integral part of these Condensed Consolidated
Financial Statements.
Condensed Consolidated Statement of Financial Position
As at 30 June 2023
----------------------------------------------------------------------------------------------------------------------
Unaudited Audited
30 June 31 December
2023 2022
----------------------------------------------------------------------------------------- ------------ -------------
Note GBP 000 GBP 000
----------------------------------------------------------------------------------------- ------------ -------------
Assets
----------------------------------------------------------------------------------------- ------------ -------------
Non-current Assets
----------------------------------------------------------------------------------------- ------------ -------------
Property, Plant and Equipment 309 358
----------------------------------------------------------------------------------------- ------------ -------------
Right of Use Assets 482 553
----------------------------------------------------------------------------------------- ------------ -------------
Financial Assets (Deposit) 125 -
----------------------------------------------------------------------------------------- ------------ -------------
916 911
----------------------------------------------------------------------------------------- ------------ -------------
Current Assets
----------------------------------------------------------------------------------------- ------------ -------------
Trade and Other Receivables 8 4,562 3,412
----------------------------------------------------------------------------------------- ------------ -------------
Cash and Cash Equivalents 14,161 21,321
----------------------------------------------------------------------------------------- ------------ -------------
18,723 24,733
----------------------------------------------------------------------------------------- ------------ -------------
Total Assets 19,639 25,644
----------------------------------------------------------------------------------------- ------------ -------------
Equity and Liabilities
----------------------------------------------------------------------------------------- ------------ -------------
Equity
----------------------------------------------------------------------------------------- ------------ -------------
Share Capital 9 223 223
----------------------------------------------------------------------------------------- ------------ -------------
Share Premium 53,218 53,218
----------------------------------------------------------------------------------------- ------------ -------------
Share-based Payment Reserve 11,348 10,215
----------------------------------------------------------------------------------------- ------------ -------------
Retained Earnings (49,197) (40,124)
----------------------------------------------------------------------------------------- ------------ -------------
Total Equity 15,592 23,532
----------------------------------------------------------------------------------------- ------------ -------------
Non-current Liabilities
----------------------------------------------------------------------------------------- ------------ -------------
Lease Liability 317 397
----------------------------------------------------------------------------------------- ------------ -------------
Provisions 48 46
----------------------------------------------------------------------------------------- ------------ -------------
365 443
----------------------------------------------------------------------------------------- ------------ -------------
Current Liabilities
----------------------------------------------------------------------------------------- ------------ -------------
Lease Liability 159 154
----------------------------------------------------------------------------------------- ------------ -------------
Trade and Other Payables 10 3,523 1,515
----------------------------------------------------------------------------------------- ------------ -------------
3,682 1,669
----------------------------------------------------------------------------------------- ------------ -------------
Total Liabilities 4,047 2,112
----------------------------------------------------------------------------------------- ------------ -------------
Total Equity and Liabilities 19,639 25,644
----------------------------------------------------------------------------------------- ------------ -------------
Notes 1 to 15 form an integral part of these Condensed
Consolidated Financial Statements.
Approved by the Board on 30 August 2023 and signed on its behalf
by:
Christoph J. Martin
Chief Financial Officer
Condensed Consolidated Statement of Changes in Equity
For the Period from 1 January 2023 to 30 June 2023
-----------------------------------------------------------------------------------------------------
Share Share Share-based Retained Total
Capital Premium Payment Earnings
Reserve
----------------------------------- ---------- --------- ------------ ---------- ---------------
GBP GBP 000 GBP 000 GBP 000 GBP
000 000
----------------------------------- ---------- --------- ------------ ---------- ---------------
At 1 January 2022 221 53,218 8,317 (17,976) 43,780
----------------------------------- ---------- --------- ------------ ---------- ---------------
Profit/(Loss) for the Period - - - (16,736) (16,736)
----------------------------------- ---------- --------- ------------ ---------- ---------------
Total Comprehensive Profit/(Loss) - - - (16,736) (16,736)
----------------------------------- ---------- --------- ------------ ---------- ---------------
Share-based Payment Transactions - - 1,148 - 1,148
----------------------------------- ---------- --------- ------------ ---------- ---------------
Exercise of Share Options 1 - - (1) -
----------------------------------- ---------- --------- ------------ ---------- ---------------
At 30 June 2022 (unaudited) 222 53,218 9,465 (34,713) 28,192
----------------------------------- ---------- --------- ------------ ---------- ---------------
At 1 January 2023 223 53,218 10,215 (40,124) 23,532
----------------------------------- ---------- --------- ------------ ---------- ---------------
Profit/(Loss) for the Period - - - (9,073) (9,073)
----------------------------------- ---------- --------- ------------ ---------- ---------------
Total Comprehensive Profit/(Loss) - - - (9,073) (9,073)
----------------------------------- ---------- --------- ------------ ---------- ---------------
Share-based Payment Transactions - - 1,133 - 1,133
----------------------------------- ---------- --------- ------------ ---------- ---------------
At 30 June 2023 (unaudited) 223 53,218 11,348 (49,197) 15,592
----------------------------------- ---------- --------- ------------ ---------- ---------------
Notes 1 to 15 form an integral part of these Condensed
Consolidated Financial Statements.
Condensed Consolidated Statement of Cash Flows
For the Period from 1 January 2023 to 30 June 2023
----------------------------------------------------------------------------------------------------------------------------
Unaudited Unaudited
six six
months to months to 30
30 June 2022
June 2023
--------------------------------------------------------------------------------------------------- --------- ------------
Note GBP 000 GBP 000
--------------------------------------------------------------------------------------------------- --------- ------------
Cash Flows used in Operating Activities
--------------------------------------------------------------------------------------------------- --------- ------------
Profit/(Loss) for the Period (9,073) (16,736)
--------------------------------------------------------------------------------------------------- --------- ------------
Adjustments to Cash Flows from Non-Cash
Items
--------------------------------------------------------------------------------------------------- --------- ------------
Depreciation 143 139
--------------------------------------------------------------------------------------------------- --------- ------------
Finance Costs 19 24
--------------------------------------------------------------------------------------------------- --------- ------------
Share-based Payment Transactions 1,133 1,148
--------------------------------------------------------------------------------------------------- --------- ------------
Taxation 6 (137) (174)
--------------------------------------------------------------------------------------------------- --------- ------------
Operating Cash Flow before movements
in Working Capital (7,915) (15,600)
--------------------------------------------------------------------------------------------------- --------- ------------
Working Capital Adjustments
--------------------------------------------------------------------------------------------------- --------- ------------
Increase in Trade and Other Receivables
8 (1,485) (24)
--------------------------------------------------------------------------------------------------- --------- ------------
Increase in Trade and Other Payables 10 2,008 1,212
--------------------------------------------------------------------------------------------------- --------- ------------
Cash used in Operations (7,392) (14,412)
--------------------------------------------------------------------------------------------------- --------- ------------
Taxes Received 6 348 194
--------------------------------------------------------------------------------------------------- --------- ------------
Net Cash Flow Used in Operating Activities (7,044) (14,218)
--------------------------------------------------------------------------------------------------- --------- ------------
Cash Flows used in Investing Activities
--------------------------------------------------------------------------------------------------- --------- ------------
Acquisition of Equipment (23) (161)
--------------------------------------------------------------------------------------------------- --------- ------------
Net Cash Flow used in Investing Activities (23) (161)
--------------------------------------------------------------------------------------------------- --------- ------------
Cash Flows used in Financing Activities
--------------------------------------------------------------------------------------------------- --------- ------------
Payment of Principal and Interest of Lease
Liabilities (93) -
--------------------------------------------------------------------------------------------------- --------- ------------
Net Cash Flow Used in Financing Activities (93) -
--------------------------------------------------------------------------------------------------- --------- ------------
Net Decrease in Cash and Cash Equivalents (7,160) (14,380)
--------------------------------------------------------------------------------------------------- --------- ------------
Cash and Cash Equivalents at 1 January 21,321 43,518
--------------------------------------------------------------------------------------------------- --------- ------------
Cash and Cash Equivalents at 30 June 14,161 29,138
--------------------------------------------------------------------------------------------------- --------- ------------
Notes 1 to 15 form an integral part of these Condensed Consolidated
Financial Statements.
Notes to the Condensed Financial Statements
For the Period from 1 January 2023 to 30 June 2023
1. Corporate Information
The Condensed Consolidated Financial Statements of PensionBee
Group plc (the 'Company') and its subsidiaries (together the
'Group') for the six months ended 30 June 2023 were authorised
for issue in accordance with a resolution of the Directors on
30 August 2023.
PensionBee Group plc is a public limited company, whose shares
are traded on the Premium Segment of the Main Market of the London
Stock Exchange ('LSE'), incorporated and domiciled in England
and Wales.
The address of its registered office is:
209 Blackfriars Road
London
SE1 8NL
United Kingdom
Principal Activity
The principal activity of the Group is that of a direct-to-consumer
online pension provider. The Group seeks to make its UK customers
'Pension Confident' by giving them complete control and clarity
over their retirement savings. The Group helps its customers
to combine their pensions into one new online plan where they
can contribute, forecast outcomes, invest effectively, and withdraw
their pensions (from the age of 55), all from the palm of their
hand.
2. Accounting Policies
Basis of Preparation
The Annual Financial Statements of PensionBee Group plc will
be prepared in accordance with United Kingdom adopted International
Financial Reporting Standards. The condensed set of financial
statements included in this half-yearly financial report has
been prepared in accordance with United Kingdom adopted International
Accounting Standard 34 'Interim Financial Reporting'. The Group
has prepared the Condensed Consolidated Financial Statements
on the basis that it will continue to operate as a going concern.
The Directors consider that there are no material uncertainties
that may cast significant doubt over this assumption. The Directors
are satisfied that the Group has sufficient resources to continue
in operation for the foreseeable future, a period of not less
than 12 months from the date of this report.
The 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 PensionBee
Group's Annual Report and Financial Statements 2022.
Summary of Significant Accounting Policies
The principal accounting policies applied in the preparation
of these financial statements are set out below. These policies
have been consistently applied to all the years presented and
the interim period policies consistently comply with International
Accounting Standard 34 'Interim Financial Reporting', unless
otherwise stated.
Audit Requirements
The financial information for the six months ended 30 June 2023
has not been audited by Deloitte LLP and accordingly no opinion
has been given. The comparative financial information for the
year ended 31 December 2022 has been extracted from the Annual
Report and Financial Statements 2022. The financial information
contained in this Interim Report does not constitute statutory
accounts as defined in section 435 of the Companies Act 2006
and does not reflect all of the information contained in PensionBee
Group plc's Annual Report and Financial Statements 2022. The
Annual Financial Statements for the year ended 31 December 2022,
which were approved by the Board of Directors on 15 March 2023,
received an unqualified audit report, did not contain a statement
under section 498 (2) or (3) of the Companies Act 2006 and have
been filed with the Registrar of Companies.
Changes in Accounting Policy
None of the standards, interpretations and amendments effective
for the first time from 1 January 2023 have had a material effect
on the Condensed Consolidated Financial Statements.
3. Critical Accounting Judgements and Key Sources of Estimation
Uncertainty
In the application of the Group's accounting policies, the Directors
are required to make judgements, estimates and assumptions about
the carrying amount of assets and liabilities that are not readily
apparent from other sources. The estimates and associated assumptions
are based on historical experience and other factors that are
considered to be relevant. Actual results may differ from these
estimates. The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates are recognised
in the period in which the estimate is revised where the revision
affects only that period, or in the period of the revision and
future periods where the revision affects both current and future
periods.
The Group does not have any critical accounting judgements or
key estimation uncertainties.
4. Revenue
The analysis of the Group's Revenue for the period from continuing
operations is as follows:
Unaudited Unaudited
six months six months
to to
30 June 30 June
2023 2022
GBP 000 GBP 000
Recurring Revenue 10,825 8,187
Other Revenue 43 71
10,868 8,258
------------ ------------
5. Segment Information
Operating segments and reporting segments are reported in a manner
consistent with the internal reporting provided to the Chief
Operating Decision Maker ('CODM'). The Group considers that the
role of CODM is performed by the Board of Directors. The CODM
regularly reviews the Group's operating results to assess performance
and to allocate resources. All earnings, balance sheet and cash
flow information received and reviewed by the Board of Directors
is prepared at a company level. The CODM considers that it has
a single business unit comprising the provision of direct-to-consumer
online pension consolidation. The CODM therefore recognises one
operating and reporting segment with all revenue, losses before
tax and net assets attributable to this single reportable business
segment.
Further, the Group operates in a single geographical location
only, being the United Kingdom.
6. Tax
Tax credited in the Condensed Consolidated Statement of Comprehensive
Income: Unaudited Unaudited
six months six months
to to
30 June 30 June
2023 2022
GBP 000 GBP 000
Current Taxation
UK Corporation Tax 137 174
------------ ------------
Tax Credit in the Condensed Consolidated
Statement of Comprehensive Income 137 174
------------ ------------
The Tax Credit in the Condensed Consolidated Statement of Comprehensive
Income relates solely to enhanced tax credits in relation to
Research and Development.
7. Earnings per Share
Basic Earnings per Share is calculated by dividing the loss attributable
to ordinary equity holders of the Parent Company by the weighted
average number of ordinary shares in issue during the period.
Diluted Earnings per Share is calculated by dividing the Loss
Attributable to Ordinary Equity Holders of the Parent Company
by the weighted average number of ordinary shares in issue during
the period. The weighted average number of ordinary shares in
issue during the period has not been adjusted for the effect
of the weighted average number of shares that would be issued
on the conversion of all the potential ordinary shares under
option because the potential ordinary shares are anti-dilutive.
At each balance sheet date reported below, the following potential
ordinary shares under option are anti-dilutive and are therefore
excluded from the weighted average number of ordinary shares
for the purpose of Diluted Earnings per Share.
Unaudited Unaudited
six months six months
to 30 June to
2023 30 June
2022
Number of Potential Ordinary Shares 6,778,659 5,100,186
Loss Attributable to Ordinary Equity Holders
of PensionBee Group plc (GBP) (9,073,000) (16,736,000)
Weighted Average Number of Shares Outstanding
during the Period 223,203,539 221,859,518
Basic and Diluted Earnings/(Loss) per
Share (pence per Share) (4.06) (7.54)
8. Trade and Other Receivables Unaudited Audited
30 June 31 December
2023 2022
GBP 000 GBP 000
Trade Receivables 1,859 1,565
Prepayments 2,167 903
Other Receivables 536 944
4,562 3,412
9. Share Capital
Allotted, Called Up and Fully Paid Shares Unaudited 30 June 2023 Audited 31 December
2022
No. 000 GBP 000 No. 000 GBP 000
Ordinary of GBP0.001
each 223,852 223 222,862 223
223,852 223 222,862 223
10. Trade and Other Payables Unaudited Audited
30 June 2023 31 December 2022
GBP 000 GBP 000
Trade Payables 363 132
Accrued Expenses 2,856 1,301
Other Payables 304 83
3,523 1,515
11. Financial Assets and Financial Liabilities
The carrying value of the financial assets and liabilities are
not materially different from their fair value.
12. Share-based Payment
PensionBee EMI and Non-EMI Share Option Scheme
Scheme Details and Movements
Under the PensionBee EMI and Non-EMI Share Option Scheme, share
options were granted to eligible employees who have passed their
probation period at the Group. The exercise price of all share
options is GBP0.001 per share.
The share options normally vest on the later of the following
tranches, 25% of the shares vest on the first anniversary of
the vesting commencement date with the remaining 75% of the shares
vesting quarterly in equal instalments over the following three
years.
The fair value of the share options granted is estimated on the
date of grant by reference to the prevailing share price. Before
the Company was listed in 2021, the fair value was determined
by reference to the price paid by external investors as part
of periodic funding rounds.
No share options were granted during the six months ended 30
June 2023 (30 June 2022: nil).
Total number of share options exercised during the six months
ended 30 June 2023 is 803,368 (30 June 2022: 878,446) and the
weighted average remaining contractual life is one year (30 June
2022: two years).
Deferred Share Bonus Plan
Scheme Details and Movements
Under the PensionBee Deferred Share Bonus Plan ('DSBP'), awards
are granted to eligible employees who are or were an employee
(including an Executive Director) of the Group and have been
granted a bonus. DSBP awards are granted at the end of the financial
year once the annual bonus outturn has been determined. The exercise
price of all DSBP awards is GBP0.001 per award.
For the two Executive Directors that were in office as at 31
December 2021 their 2022 granted DSBP awards cliff vest on the
third anniversary of the date of grant. For the rest of the employees
and the subsequent grants, DSBP awards vest in three equal tranches
over a service period of three years from grant date. DSBP awards
vest upon satisfying the service condition.
The fair value of the DSBP awards is the share price on grant
date. DSBP awards can be exercised to the extent they have vested.
626,223 awards were granted during the six months ended 30 June
2023 (30 June 2022: 944,508). The weighted average fair value
of awards granted during the six months ended 30 June 2023 was
GBP0.98 (30 June 2022: GBP1.44).
Total number of awards exercised during the six months ended
30 June 2023 was 186,806 (30 June 2022: nil) and the weighted
average remaining contractual life is one year and five months
(30 June 2022: one year and eleven months).
Long Term Incentives
Scheme Details and Movements
Under the PensionBee Long Term Incentives ('LTI'), awards are
granted to eligible employees who are, or were, employees (including
an Executive Director) of the Group, at mid-level management
or higher, and have been granted a bonus. LTI awards are granted
in the subsequent year following a bonus grant. The exercise
price of all LTI awards is GBP0.001 per award.
The awards vest in tranches, a third of the awards vest on the
third anniversary, a third on the fourth anniversary and the
last third on the fifth anniversary of the vesting commencement
date.
The fair value of the LTI awards is the share price on grant
date discounted for restricted selling period. LTI awards can
be exercised to the extent they have vested.
2,791,756 awards were granted during the six months ended 30
June 2023 (30 June 2022: 1,311,681). The weighted average fair
value of awards granted during the six months ended 30 June 2023
was GBP0.94 (30 June 2022: GBP1.38).
Total number of awards exercised during the six months ended
30 June 2022 was nil (30 June 2021: nil) and the weighted average
remaining contractual life is three years and five months (30
June 2022: three years and nine months).
Charge/Credit arising from Share-based Payment
The total charge during the six months ended 30 June 2023 for
the Share-based Payment was GBP1,133,000 (30 June 2022: GBP1,148,000),
all of which related to equity-settled share-based payment transactions.
13. Principal Risks and Uncertainties
The Board continually reviews the principal risks and uncertainties
facing the Group that could pose a threat to the delivery of
the strategic objectives. The Board believes that the nature
of the principal risks and uncertainties that may have a material
effect on the Group's performance over the remainder of the financial
year remain unchanged from those presented within the Annual
Report and Financial Statements 2022.
14. Related Party Transactions
Related Party - PensionBee Trustees Limited
The following related party transactions occurred between PensionBee
and PensionBee Trustees Limited:
(i) Payment of the PensionBee Trustees Limited bank fees on a
quarterly basis. During the six months to 30 June 2023, bank
fees amounted to GBP73,500 (30 June 2022: GBP44,500). There was
no outstanding balance as at 30 June 2023 (30 June 2022: GBPnil).
(ii) Payment of the PensionBee Trustees Limited's Data Protection
fee on an annual basis. During the six months to 30 June 2023,
payments amounted to GBP35 (30 June 2022: GBP35). There was no
outstanding balance as at 30 June 2023 (30 June 2022: GBPnil).
Transactions with Directors
There were no transactions with Directors during the six months
ended 30 June 2023 (30 June 2022: GBPnil). During the year ended
31 December 2022, Mark Wood repaid GBP105,279 to the Subsidiary
in respect of a payment to HMRC made by the Group on his behalf
in 2021. As at 30 June 2023 there was no outstanding balance
(30 June 2022: GBP105,279).
15. Events After the Reporting Period
There were no events of material impact to the financial statements
that occurred after the reporting date.
16. Alternative Performance Measures
The Group uses a variety of alternative performance measures
('APM's') which are not defined or specified by IFRS, in particular
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortisation
('EBITDA'). The Directors use a combination of APMs and IFRS
measures when reviewing the performance and position of the Group
and believe that each of these measures provides useful information
with respect to the Group's business and operations. The Directors
consider that these APMs illustrate the underlying performance
of the business by excluding items considered by management not
to be reflective of the underlying trading operations of the
Group.
The APMs used by the Group are defined below and reconciled to
the related IFRS financial measures:
Adjusted EBITDA
Adjusted EBITDA represents loss for the year before taxation,
finance costs, depreciation, share based compensation and listing
costs. Unaudited Unaudited
six months six months
to to
30 June 30 June
2023 2022
GBP 000 GBP 000
Operating Loss (9,191) (16,886)
Depreciation Expense 143 139
Share-based Payment (1) 1,133 1,148
Listing Costs (2) - 687
------------ ------------
Adjusted EBITDA (7,915) (14,912)
------------ ------------
(1) Relates to the total annual charge in relation to the Share-based
Payment expense as detailed in Note 12 to the Condensed Consolidated
Financial Statements.
(2) Relates to expenses incurred in relation to preparation for
admission to the London Stock Exchange.
Definitions
Financial Performance Measures Revenue Revenue means the income generated from the asset
base of PensionBee's customers, essentially annual
management fees charged on the AUA, together with
a minor revenue contribution from other services.
-------------------------------------------------------
Profit/(Loss) Profit/(Loss) before Tax is a measure that looks
before Tax at PensionBee's profit or losses before it has paid
('PBT') corporate income tax.
---------------- -------------------------------------------------------
Adjusted Adjusted EBITDA is the operating profit or loss before
EBITDA* taxation, finance costs, depreciation, share-based
compensation and listing costs. This measure is a
proxy for operating cash flow.
---------------- -------------------------------------------------------
Adjusted Adjusted EBITDA Margin means Adjusted EBITDA as a
EBITDA Margin* percentage of Revenue for the relevant period.
---------------- -------------------------------------------------------
Basic Earnings Basic Earnings per Share is calculated by dividing
per Share the profit or loss attributable to ordinary equity
('EPS') holders of the Group by the weighted average number
of ordinary shares in issue during the period.
---------------- -------------------------------------------------------
* PensionBee's Key Performance Indicators include alternative
performance measures ('APM's), which are indicated with an asterix.
APMs are not defined by International Financial Reporting Standards
('IFRS') and should be considered together with the Group's IFRS
measurements of performance. PensionBee believes APMs assist in
providing additional insight into the underlying performance of
PensionBee and aid comparability of information between reporting
periods. A reconciliation to the nearest IFRS number is provided
in Note 16 of the Condensed Consolidated Financial Statements
'Alternative Performance Measures'.
Non-Financial Performance Measures Assets under Assets under Administration is the total invested
Administration value of pension assets within PensionBee's Invested
('AUA') Customers' pensions. It measures the new inflows
less the outflows and records a change in the market
value of the assets. This KPI has been selected because
AUA is a measurement of the growth of the business
and is the primary driver of Revenue.
------------------------------------------------------------
AUA Retention AUA Retention measures the percentage of retained
Rate (% of PensionBee AUA from transfers out over the average
AUA) of the trailing twelve months. High AUA retention
provides more certainty of future Revenue. This measure
can also be used to monitor customer satisfaction.
------------------- ------------------------------------------------------------
Invested Customers Invested Customers means those customers who have
('IC') transferred pension assets or made contributions
into one of PensionBee's investment plans.
------------------- ------------------------------------------------------------
Customer Retention Customer Retention Rate measures the percentage of
Rate retained PensionBee Invested Customers over the average
(% of IC) of the trailing twelve months. High customer retention
provides more certainty of future Revenue. This measure
can also be used to monitor customer satisfaction.
------------------- ------------------------------------------------------------
Cost per IC Cost per Invested Customer means the cumulative advertising
('CPIC') and marketing costs incurred since PensionBee commenced
operations up until the relevant point in time divided
by the cumulative number of Invested Customers at
that point in time. This measure monitors cost discipline
of customer acquisition. PensionBee's desired CPIC
threshold is GBP200-GBP250.
------------------- ------------------------------------------------------------
Net Flows Net Flows measures the cumulative inflow of PensionBee
AUA from consolidation and contribution ('Gross Inflows'),
less the outflows from withdrawals and transfers
out ('Gross Outflows') over the relevant period.
------------------- ------------------------------------------------------------
Realised Revenue Realised Revenue Margin expresses the Recurring Revenue
Margin (% of over the average quarterly AUA held in PensionBee's
AUA) investment plans over the period.
------------------- ------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Company Information
PensionBee Executive Directors
Romi Savova (Chief Executive Officer)
Jonathan Lister Parsons (Chief Technology Officer)
Christoph J. Martin (Chief Financial Officer)
PensionBee Non-Executive Directors
Mark Wood CBE (Non-Executive Chair)
Mary Francis CBE (Senior Independent Non-Executive Director)
Michelle Cracknell CBE (Independent Non-Executive Director)
Lara Oyesanya FRSA (Independent Non-Executive Director)
Company Secretary
Michael Tavener
Registered Number
13172844
Registered Office
209 Blackfriars Road
London
SE1 8NL
United Kingdom
Auditor
Deloitte LLP
4 Brindley Place
Birmingham
B1 2HZ
United Kingdom
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END
IR DDGDIBSXDGXG
(END) Dow Jones Newswires
August 31, 2023 02:00 ET (06:00 GMT)
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