TIDMPBEE
RNS Number : 3790M
PensionBee Group plc
21 September 2021
PensionBee Group plc
Incorporated in England and Wales
Registration Number: 13172844
LEI: 2138008663P5FHPGZV74
ISIN: GB00BNDRLN84
Interim Results
for the six months ended 30 June 2021
PensionBee Group plc ("PensionBee" or the "Company"), a leading online pension provider, today
announces interim results for the six month period ended 30 June 2021 (1H 2021).
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
all of its key metrics, in line with the trading update released on 22 July 2021.
Performance Overview
* Revenue increased by 109% to GBP5.4m (1H 2020: GBP2.6m)
* Annual Run-Rate Revenue increased by 114% to GBP12.3m (1H 2020: GBP5.7m)
* Loss before tax was GBP(12.8)m (1H 2020: GBP(5.2)m)
* Adjusted EBITDA decreased by 89% to GBP(7.6)m (1H 2020: GBP(4.0)m)
* Adjusted EBITDA Margin was (141)% (1H 2020: (155)%)
* Basic Earnings per Share was (6.54)p
* Assets under Administration ("AUA") increased by 117%
year on year to GBP2.0bn (1H 2020: GBP915m),
substantially driven by total Net Inflows
* Invested Customers ("IC") increased by 81% to 92,000 (1H 2020: 51,000)
* Active Customers increased by 78% to 155,000 (1H20: 87,000)
* Customer Retention Rate and AUA Retention Rate both stable at >95% (HY20: >95%)
* 4.7 Excellent Trustpilot rating maintained
* Strong cash position of GBP55m (December 2020: GBP6.7m)
Romi Savova, Chief Executive Officer of PensionBee, commented:
"We are very pleased to have achieved continued strong financial and operational performance
in line with our expectations during the first half of the year, together with having made
our successful debut on the High Growth Segment of the London Stock Exchange in April. Our
Initial Public Offering ("IPO") raised GBP55m from institutional investors and customers to
facilitate continued investment in innovation and our rapid growth trajectory, supporting
the path to profitability.
Our strategy of always putting the customer first continues to resonate with both new and
existing customers as demonstrated by our strong growth in the Invested Customer base, AUA
and Revenue, together with the maintenance of our industry-leading customer retention rates.
We continue to implement our strategy to expand our reach across the UK, driving further growth.
The first half of the year saw us scale-up our marketing spend, as we rolled out a new national
brand campaign and launched a new data platform to support efficient deployment of marketing
spend, keeping Cost per Invested Customer in line with desired thresholds. We also continued
to invest in product innovation, in our technology platform and in our people.
Our scalable and resilient business model, combined with our strong financial position, means
that we are well placed to capitalise on the significant market growth opportunity. We expect
to maintain our strong momentum, deliver high double-digit Revenue growth for the current
financial year 2021 and to reach monthly EBITDA breakeven by the end of 2023, in line with
the guidance we set out at the time of our IPO."
Financial Highlights *
For the 6-month Period Ending
Jun-2021 Jun-2020 YoY
========== ========== ===========
Revenue (GBPm) 5.4 2.6 109%
========== ========== ===========
Annual Run Rate Revenue (GBPm)** 12.3 5.7 114%
========== ========== ===========
Loss before Tax (12.8) (5.2) 145%
========== ========== ===========
Adjusted EBITDA (GBPm)** (7.6) (4.0) -89%
========== ========== ===========
Adjusted EBITDA Margin (% of Revenue)** (141)% (155)% +14ppt
========== ========== ===========
Basic and Diluted Earnings per Share*** (6.54)p (2.99)p -119%
========== ========== ===========
Non-Financial Highlights *
As at Period End
Jun-2021 Jun-2020 YoY
========== ========== =================
AUA (GBPm) 1,987 915 117%
========== ========== =================
AUA Retention Rate (% of AUA) >95% >95% stable
========== ========== =================
Registered Customers (thousands) 538 297 81%
========== ========== =================
Active Customers (thousands) 155 87 78%
========== ========== =================
Invested Customers (thousands) 92 51 81%
========== ========== =================
Customer Retention Rate (% of IC) >95% >95% stable
========== ========== =================
Cost per Invested Customer (GBP) 240 209 within threshold
========== ========== =================
Same Year RC: IC Conversion (% of RC) 17% 17% stable
========== ========== =================
Contractual Revenue Margin (% of AUA) 0.69% 0.68% +1bp
========== ========== =================
* 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.
*** 1H 2020 EPS was adjusted for the impact of the IPO to give a comparable EPS of (2.99)p.
Contacts
Tulchan Communications pensionbee@tulchangroup.com
James Macey White +44 (0)20 7353 4200
Elizabeth Snow
Laura Marshall
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 delivered strong continued financial and operational performance for the first half of
the year, reflected in the growth rates of our Invested Customer base, Assets under Administration
and Revenue.
Our customer-centric offering (combining technological innovation, exceptional customer service
and transparent and straightforward fees) continued to resonate with the UK population. We
benefited from the ability to grow into the vast UK Defined Contribution pension market, in
line with our ambition to help more people across the UK look forward to a happy retirement.
Overview
We achieved strong year-on-year growth in the first half of 2021.
Assets under Administration (AUA) increased by 117% to GBP1,987m (1H 2020: GBP915m) and our
Annual Run Rate Revenue increased by 114% to GBP12.3m (H1 2020: GBP5.7m), led by an increase
in Invested Customers of 81% to 92,000 (1H 2020: 51,000). Active Customers grew to 155,000
and Registered Customers grew to 538,000 underscoring the strength of the future customer
pipeline.
Loss before tax was GBP(12.8)m (1H 2020: GBP(5.2)m) reflecting the increased investment in
marketing, the technology platform and our people to drive rapid growth. Adjusted EBITDA reached
GBP(7.6)m (1H 2020: GBP(4.0)m) and Adjusted EBITDA Margin was (141)% (1H 2020: (155)%), highlighting
the scalability of the business model expected over time.
We demonstrated the continued strength of PensionBee's customer value proposition by maintaining
a Customer Retention Rate in excess of 95% (1H 2020: > 95%), by achieving a 4.7 Excellent
Trustpilot rating (1H 2020: 4.6 ) and by winning multiple industry awards.
The Company raised GBP55m of capital in its successful IPO on the High Growth Segment of the
London Stock Exchange in April of this year, enabling further innovation and growth and supporting
a path to profitability by the end of 2023. PensionBee expects to transition to the Premium
Segment of the London Stock Exchange's Main Market in 2022.
Strategic Update
Our mission is to make pensions simple so that everyone can look forward to a happy retirement.
We continue to successfully execute our five-point strategy designed around this mission,
as communicated at the time of the IPO. This strategy has continued to underpin our rapid
growth:
Efficient investment in customer acquisition and brand awareness
During the first half of the year, we continued to scale-up our marketing spend and as was
the case in 2020, the majority of our marketing spend was deployed across our top three channels:
TV, Out Of Home and Paid Search.
We were delighted to roll out a new brand campaign nationally, across Out of Home, Radio,
TV and Online channels. The "feels so good" campaign featured across the UK. We advertised
on over 4,500 billboards across the country and created close to 450 million impressions.
Our ongoing use of data allows us to optimise our digital channels and to attract more and
more customers efficiently. We benefited from the launch of our new data platform (as mentioned
below), which supported continued deployment of marketing spend on digital channels to grow
rapidly, whilst keeping Cost per Invested Customer in line with our desired thresholds.
We were also pleased to become the official pension partner for Brentford Football Club ('Brentford
Bees' ) , shortly before their historic admission into the Premier League.
Leadership in product innovation
During the first half of the year, we continued to invest in product innovation, with a particular
focus on improving our efficiency.
Our new transfer tracker enables more effective and detailed tracking of transfers, allowing
our customers to see exactly which stage their pension transfer is at, enhancing the customer
experience and reducing the need for inbound queries. Similarly, our new push notifications
will enable customers to take direct actions in the app without the need to interact with
our team. In addition, we deepened our integrations with several pension providers, extending
our proprietary relationships and the efficiency of our mutual communication.
Continued investment in and development of an industry leading technology platform
We continued to invest in our technology over the first half of the year. We place great importance
on our data capabilities and as noted above, have invested in a new data platform that is
now in operation. This is based on best-of-breed open source and proprietary data warehouse
and data pipeline components, allowing us to monitor and visualise all of our data in real
time, providing insight into return on marketing investment to help optimise the decision
making process.
The first use case for the data platform was the real time tracking of our customer journey
with the objective of optimising our Cost per Invested Customer while continuing to deploy
marketing capital rapidly. We increasingly foresee a transition from Cost per Invested Customer
to cost per AUA in our future KPI tracking.
Continued focus on excellent customer service
We pride ourselves on our excellent customer service and want to create the best pension experience
possible for our customers. We pay close attention to our Trustpilot rating which has remained
at 4.7 Excellent, with more than 5,000 reviews from our customers. We also continue to maintain
strong response times across all channels, including live chat, phone and email.
Ensuring excellent levels of customer satisfaction, reflected in the maintenance of our industry-leading
customer retention levels, is central to our ambition of retaining and serving our customers
throughout their lifetime. We demonstrated the continued strength of our customer value proposition
by maintaining a Customer Retention Rate in excess of 95%. The high levels of recurring revenues
generated as a result of this high customer retention, combined with the scalability of our
technology platform underpin the generation of operating leverage over time.
PensionBee's customer-focused offering received further industry recognition during the period,
named as a 'Best Buy' in five categories at the Boring Money 2021 Awards, which commended
the quality of our customer service and communications, our commitment to sustainability,
website and ease of use.
Continued focus on investment solutions designed for customers
We continued our ongoing engagement with our asset management partners to determine the optimal
product range for our customers.
Earlier this year we confirmed that we had received GBP724k from State Street Global Advisors
('SSGA') in relation to an error made by FTSE Russell in the composition of one of their indices
that affected numerous SSGA funds, including one fund offered to PensionBee. As we had previously
paid GBP664k to affected customers on an entirely ex-gratia basis, we were able to use the
GBP724k to further invest in our team and product capabilities, in order to deliver on our
growth strategy.
Regulatory Developments
We are known in the industry as a supporter of consumer rights and we continue to actively
campaign for greater levels of transparency, easier switching and fairer charging across all
pension products.
During the first half of the year, we continued to actively engage with both the Government
and the Financial Conduct Authority ("FCA") on proposed changes to the legislative and regulatory
framework that we operate within.
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 changes are supportive of PensionBee's business model, its mission and
its vision.
Dividend
In line with its stated dividend policy, the Company does not intend to pay any dividends
as it continues to invest in growth and execute on its 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
Following our successful IPO in April of this year, we have a strong cash position that will
enable us to continue to invest in our rapid future growth and to capitalise on the vast and
growing UK Defined Contributions pension market opportunity that we operate within. We expect
to accelerate progress, acquiring more customers and enabling them to become 'Pension Confident'.
For the remainder of 2021, we expect to deliver high double-digit Revenue growth in line with
the guidance provided at the time of IPO. We will continue our investment in marketing and
product innovation, rolling out new features to optimise customer experience, and will continue
to invest in our people and our technology platform as we prepare for 2022. Our Adjusted EBITDA
Margin is expected to be in line with market expectations for the year and we remain committed
to achieving monthly breakeven by the end of 2023.
We will continue to engage in good corporate behaviour that supports healthy long-term returns
for our customers' pensions and promotes their health, as well as the health of our environment.
We will also stand up for the rights of consumers, enabling them to have better, more transparent
pension products - resulting in a happy retirement for all.
Romi Savova
Chief Executive Officer
20 September 2021
Financial Review
We continued executing on our growth strategy and by the first half of 2021 as compared to
the previous period, Revenue increased by 109% to GBP5.4m (1H 2020: GBP2.6m), Invested Customers
grew by 81% YoY to 92,000 (1H 2020: 51,000), AUA increased by 117% to GBP1,987m (1H 2020:
GBP915m) and Annual Run Rate Revenue rose by 114% to GBP12.3m (1H 2020: GBP5.7m). This success
was primarily driven by new customer acquisition and asset growth from existing customers
(1).
Summary Financial Highlights*
For the 6-month Period Ending
Jun-2021 Jun-2020 YoY
============= ============ =====
Annual Run Rate Revenue (GBPm)** 12.3 5.7 114%
============= ============ =====
Revenue (GBPm) 5.4 2.6 109%
============= ============ =====
Money Manager Costs (GBPm) (0.9) (0.4) 142%
============= ============ =====
Technology Platform Costs & Other Operating Expenses (GBPm) (2,3) (6.0) (3.4) 78%
============= ============ =====
Adjusted EBITDA before Marketing (GBPm)** (1.5) (1.2) -29%
============= ============ =====
Adjusted EBITDA Margin before Marketing
(% of Revenue)** (28)% (45)%
============= ============ =====
Marketing Costs (GBPm) (6.1) (2.9) 114%
============= ============ =====
Adjusted EBITDA (GBPm)** (7.6) (4.0) -89%
============= ============ =====
Adjusted EBITDA Margin (% of Revenue)** (141)% (155)%
============= ============ =====
* 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.
(1) Existing customers defined as customers acquired from 2016 to 2020.
(2) Other Operating Expenses comprise Administrative Costs and auditor's remuneration.
(3) Technology Platform & Other Costs comprise Employee Benefits Expense (excluding share based
payment), technology and operations costs and Other Operating Expenses.
Business Performance
Customers
As at Period End
Jun-2021 Jun-2020 YoY
========= ========= =======
Registered Customers (thousands) 538 297 81%
========= ========= =======
Active Customers (thousands) 155 87 78%
========= ========= =======
Invested Customers (thousands) 92 51 81%
========= ========= =======
Same Year RC: IC Conversion (% of RC) 17% 17% stable
========= ========= =======
Customer Retention Rate (% of IC) >95% >95% stable
========= ========= =======
In April of this year, we raised GBP55m of primary capital in our successful IPO and we began
deploying that capital over the course of May and June in order to continue delivering our
growth trajectory. Marketing investment drove Registered Customers to 538,000 (1H 2020: 297,000)
an increase of 81% on the prior year.
The Customer Retention Rate remained consistently above 95%, underscoring our customers' continued
satisfaction with the PensionBee proposition and reflecting general consumer behaviour around
long-term savings products.
Assets under Administration
As at Period End/
For the 6-month Period Ending
Jun-2021 Jun-2020 YoY
============= ============= =========
Opening AUA (GBPm) 1,358 745 82%
============= ============= =========
Net Flows from New Customers (GBPm) 316 142 122%
============= ============= =========
Net Flows from Existing Customers (GBPm) 166 66 152%
============= ============= =========
Net Flows (GBPm) 482 208 131%
============= ============= =========
Market Growth and Other (GBPm) 148 (38) n/a
============= ============= =========
Closing AUA (GBPm) 1,987 915 117%
============= ============= =========
AUA Retention Rate (% of AUA) >95% >95% stable
============= ============= =========
We increased our AUA from GBP915m to GBP1,987m, an increase of 117% on the prior year. This
was driven by a combination of new customer acquisition, existing customers increasing their
savings with us and market growth. Over the first half of 2021, our pension asset base increased
from GBP1,358m to GBP1,987m, a total increase of GBP629m (1H 2020: GBP170m). More than 75%
of this increase (GBP482m) was generated by Net Flows from New Customers and Net Flows from
Existing Customers, with the balance (GBP148m) being accounted for by market appreciation.
The 1H 2020 increase (GBP170m) was wholly attributed to Net Flows from New Customers and Net
Flows from Existing Customers.
Growth from new customers represented the majority of asset growth in the first half of 2021
with Net Flows from New Customers of GBP316m (1H 2020: GBP142m), reflecting our strategy of
cost-disciplined new customer acquisition. Over this period we acquired 23,000 (1H 2020: 13,000)
revenue-generating Invested Customers. A higher proportion of these new Invested Customers
were observed to be older customers with a corresponding higher average pension size. As such,
we have seen an increase in the average pension pot size from GBP18,000 in 1H 2020 to GBP21,600
in 1H 2021.
Our existing customers have continued to see their savings grow, with Net Flows from Existing
Customers of GBP166m over the first half of the year (1H 2020: GBP66m). Since inception, we
have consistently enjoyed a high Customer Retention Rate of over >95% and this trend has continued
into the first half of the year. We saw existing customers consolidating additional pensions
into their PensionBee online pension plan and customers contributing to their pensions while
maintaining relatively low levels of withdrawals. As a result, existing customers' together
with new customers' net flows contributed >75% of total asset growth in 1H 2021.
AUA growth also reflected an element of market growth of GBP148m over the first half of the
year. As is customary in the pensions industry, our customers' pensions are invested predominantly
in global equity capital markets, which experienced strong performance during the year, and
as such our asset base benefited from this market appreciation.
Financial Performance
Revenue
As at Period End/
For the 6-month Period Ending
Jun-2021 Jun-2020 YoY
=============== ============== ========
Contractual Revenue Margin (% of AUA) 0.69% 0.68% +1bp
=============== ============== ========
Revenue (GBPm) 5.4 2.6 109%
=============== ============== ========
Annual Run Rate Revenue (GBPm) 12.3 5.7 114%
=============== ============== ========
We have translated strong year on year AUA growth of 117% into 114% growth in Annual Run Rate
Revenue, owing to the stable Contractual Revenue Margin. The Contractual Revenue Margin is
the headline fee paid by customers before applying discounts for incremental pension savings
above GBP100,000. The Contractual Revenue Margin increased by 1bp to 0.69% (1H 2020: 0.68%).
Profitability Metrics
For the 6-month Period Ending
Jun-2021 Jun-2020 YoY
============ =========== =======
Loss before tax (GBPm) (12.8) (5.2) 145%
============ =========== =======
Adjusted EBITDA before Marketing (GBPm) (1.5) (1.2) -29%
(note 18)
============ =========== =======
Adjusted EBITDA Margin before Marketing (% of Revenue) (28)% (45)% +17ppt
============ =========== =======
Adjusted EBITDA (GBPm) (7.6) (4.0) -89%
============ =========== =======
Adjusted EBITDA Margin (% of Revenue) (141)% (155)% +14ppt
============ =========== =======
Over the first half of 2021, we were able to demonstrate operating leverage, due to the scalability
of the technology platform.
One of the key profitability metrics that we measure is Adjusted EBITDA before Marketing.
This measure includes Money Manager Costs and Technology Platform Costs and Other Operating
Expenses, but excludes Advertising and Marketing Expenses (which generate long-term returns
through long-standing customer relationships), Share-based Payments and Transactions Costs.
A change in Adjusted EBITDA before Marketing is therefore an indicator of short term operating
leverage. Adjusted EBITDA Margin before Marketing improved to (28)% for 1H 2021 from (45)%
for 1H 2020, underscoring the scalability of the technology platform and the effectiveness
of new feature releases that improved the efficiency of customer operations.
The second profitability metric that we measure is Adjusted EBITDA, which captures Advertising
and Marketing Expenses but excludes Share-based Payments and Transaction Costs. Adjusted EBITDA
Margin improved to (141)% for 1H 2021 from (155)% for 1H 2020.
Money Manager Costs, Technology Platform Costs and Other Operating Expenses
For the 6-month Period Ending
Jun-2021 Jun-2020 YoY
============= ============ =====
Money Manager Costs (GBPm) (0.9) (0.4) 142%
============= ============ =====
Employee Benefits Expense (excluding
Share-based Payment) (GBPm) (3.4) (2.1) 62%
============= ============ =====
Other Operating Expenses (GBPm) (2.6) (1.3) 104%
============= ============ =====
Technology Platform Costs and Other Operating Expenses (GBPm) (6.0) (3.4) 78%
============= ============ =====
Money Manager Costs increased to GBP0.9m at a slightly higher rate than Revenue, which was
due to an increase in the number of new customers selecting funds with incrementally higher
money manager fees.
Employee Benefits Expense increased to GBP3.4m primarily driven by an increase in the headcount
in the second half of 2020. In contrast, we only grew headcount incrementally in the first
half of 2021. Overall, headcount increased to 151 full-time employees as at 30 June 2021 from
99 full time employees as at 30 June 2020.
Other Operating Expenses increased to GBP2.6m owing to investments in technology, professional
services and other corporate costs.
Marketing Costs
As at Period End/
For the 6-month Period Ending
Jun-2021 Jun-2020 YoY
============ =========== =====================
Cost per Invested Customer (CPIC) (GBP) 240 209 within threshold
============ =========== =====================
Marketing Costs (GBPm) (6.1) (2.9) 114%
============ =========== =====================
Marketing Costs / Revenue (x) (1.13)x (1.10)x (0.03)x
============ =========== =====================
In line with our growth strategy, we continued to invest substantially in customer acquisition
activities through a diversified marketing approach. The majority of the GBP55m primary capital
raised as part of the IPO is earmarked for marketing expenditure. We monitor the customer
acquisition cost (CPIC) very closely to ensure continued disciplined, data-led decision making
and the maintenance of CPIC within our desired threshold of GBP200-250. Our increasingly sophisticated
data platform tooling and our historical experience with brand and performance channels helped
ensure the CPIC objective was achieved.
Other Costs
For the 6-month Period Ending
Jun-2021 Jun-2020 YoY
=================== =================== ========
Share-based Payment (GBPm) (2.0) (1.1) 80%
=================== =================== ========
Transaction Costs (GBPm) (2.9) - -
=================== =================== ========
Finance Costs (GBPm) (0.2) - -
=================== =================== ========
Taxation (GBPm) (0.1) (0.1) 0%
=================== =================== ========
Share-based Payment costs increased due to the accelerated vesting of options and the revision
of the estimate on the occurrence of a liquidity event (being the IPO) in 1H 2021, which was
not previously highly likely when assessed during 1H 2020. Another contributor to the cost
increase was the introduction of the PensionBee new post IPO compensation regime, Deferred
Share Bonus Plan (DSBP) in 1H 2021, for which an accrual was recorded.
Transaction Costs primarily consist of fees and expenses incurred in relation to the preparation
for our IPO (which commenced at the end of 2020) and admission to trading on the London Stock
Exchange.
Finance Costs are fees associated with a GBP10m Revolving Credit Facility (the "RCF") that
we entered into with National Westminster Bank Plc on 22 March 2021, as part of a prudent
liquidity management strategy. The RCF remains undrawn.
Tax Credit relates to enhanced tax credits in relation to routine Research and Development
refunds. No deferred tax asset has been recognised for the carried forward losses.
Basic Earnings per Share (EPS)
Basic and diluted EPS was (6.54)p for 1H 2021 (1H 2020: (2,389.88)p). These two EPS figures
are not directly comparable due to a change in share capital as part of the reorganisation
ahead of the IPO, together with the issuance of new shares as part of the IPO itself in April
2021.
Adjusting the 1H 2020 EPS for the impact of the IPO gives a comparable EPS of (2.99)p.
Regulatory Capital and Financial Position
PensionBee Limited, a subsidiary of the Company, is authorised and regulated by the FCA and
therefore adheres to capital requirement set by the FCA. As of June 2021, the capital resources
stood at GBP41m as compared to a capital resource requirement of GBP0.8m, resulting in a coverage
of 52x.
As of June 2021, the cash and cash equivalents balance was GBP55m (December 2020: GBP6.7m).
Romi Savova
Chief Executive Officer
20 September 2021
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
Romi Savova
Chief Executive Officer
20 September 2021
Independent Review Report to PensionBee Group plc
We have been engaged by PensionBee Group plc (the "Company") to review the condensed set of
financial statements in the half-yearly financial report for the six months ended 30 June
2021 which comprises the Interim Consolidated Income Statement, the Interim Consolidated Statement
of Financial Position, the Interim Consolidated Statement of Changes in Equity, the Interim
Consolidated Statement of Cash Flows and related notes 1 to 17. We have read the other information
contained in the half-yearly financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in the condensed set of financial
statements.
Directors' Responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, 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.
As disclosed in note 2, the annual financial statements of the Company 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".
Our Responsibility
Our responsibility is to express to the Company a conclusion on the condensed set of financial
statements in the half-yearly financial report based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements (UK
and Ireland) 2410 "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. 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.
Conclusion
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 2021 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.
Use of our Report
This report is made solely to the Company in accordance with International Standard on Review
Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the
Independent Auditor of the Entity" issued by the Financial Reporting Council. 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
20 September 2021
Interim Consolidated Income Statement
For the Period from 1 January 2021 to 30 June 2021
----------------------------------------------------------------------------------------------------------
Unaudited Unaudited
six months to six months to
30 June 2021 30 June 2020
----------------------------------------------------------- ------------------------- ------------------
Note GBP 000 GBP 000
----------------------------------------------------------- ------------------------- ------------------
Revenue 4 5,395 2,585
----------------------------------------------------------- ------------------------- ------------------
Employee benefits expense
(excluding share-based payment) (3,435) (2,118)
----------------------------------------------------------- ------------------------- ------------------
Share-based payment (1,953) (1,087)
----------------------------------------------------------- ------------------------- ------------------
Depreciation expense (124) (118)
----------------------------------------------------------- ------------------------- ------------------
Advertising and marketing (6,100) (2,855)
----------------------------------------------------------- ------------------------- ------------------
Other expenses (3,447) (1,621)
----------------------------------------------------------- ------------------------- ------------------
Transaction costs (2,898) -
----------------------------------------------------------- ------------------------- ------------------
Operating loss (12,562) (5,214)
----------------------------------------------------------- ------------------------- ------------------
Finance costs (205) (6)
----------------------------------------------------------- ------------------------- ------------------
Loss before tax (12,767) (5,220)
----------------------------------------------------------- ------------------------- ------------------
Taxation 6 100 97
----------------------------------------------------------- ------------------------- ------------------
Loss for the period (12,667) (5,123)
----------------------------------------------------------- ------------------------- ------------------
Total comprehensive loss for the period (12,667) (5,123)
----------------------------------------------------------- ------------------------- ------------------
Earnings/(loss) per share (pence per share)
----------------------------------------------------------- ------------------------- ------------------
Basic and diluted (6.54) (2,389.88)
----------------------------------------------------------- ------------------------- ------------------
The above results were derived from continuing operations.
The notes form an integral part of these consolidated financial statements.
Interim Consolidated Statement of Financial Position
as at 30 June 2021
Audited
Unaudited 31 December 2020
30 June
2021
------------------------------------------------------------------------------ ------------------ ------------------
Note GBP 000 GBP 000
------------------------------------------------------------------------------ ------------------ ------------------
Assets
------------------------------------------------------------------------------ ------------------ ------------------
Non-current assets
------------------------------------------------------------------------------ ------------------ ------------------
Property, plant and equipment 134 195
------------------------------------------------------------------------------ ------------------ ------------------
Right of use assets 59 118
------------------------------------------------------------------------------ ------------------ ------------------
193 313
------------------------------------------------------------------------------ ------------------ ------------------
Current assets
------------------------------------------------------------------------------ ------------------ ------------------
Trade and other receivables 8 3,816 1,506
------------------------------------------------------------------------------ ------------------ ------------------
Cash and cash equivalents 55,047 6,736
------------------------------------------------------------------------------ ------------------ ------------------
58,863 8,242
------------------------------------------------------------------------------ ------------------ ------------------
Total assets 59,056 8,555
------------------------------------------------------------------------------ ------------------ ------------------
Equity and liabilities
------------------------------------------------------------------------------ ------------------ ------------------
Equity
------------------------------------------------------------------------------ ------------------ ------------------
Share capital 9 221 -
------------------------------------------------------------------------------ ------------------ ------------------
Share premium 53,218 30,322
------------------------------------------------------------------------------ ------------------ ------------------
Share-based payment reserve 6,223 4,378
------------------------------------------------------------------------------ ------------------ ------------------
Retained earnings (6,012) (28,245)
------------------------------------------------------------------------------ ------------------ ------------------
Total equity 53,650 6,455
------------------------------------------------------------------------------ ------------------ ------------------
Current liabilities
------------------------------------------------------------------------------ ------------------ ------------------
Trade and other payables 11 5,369 1,991
------------------------------------------------------------------------------ ------------------ ------------------
Lease liability 37 109
------------------------------------------------------------------------------ ------------------ ------------------
5,406 2,100
------------------------------------------------------------------------------ ------------------ ------------------
Total equity and liabilities 59,056 8,555
------------------------------------------------------------------------------ ------------------ ------------------
Approved by the Board on 20 September 2021 and signed on its
behalf by:
Romi Savova
Chief Executive Officer
Interim Consolidated Statement of Changes in Equity
for the Period from 1 January 2021 to 30 June 2021
----------------------------------------------------------------------------------------------------------------------
Share-based payment
reserve
Share capital Share premium Retained earnings
Total
----------------------- ---------------- ---------------- ----------------------- -------------------- ----------
GBP 000 GBP 000 GBP 000 GBP 000 GBP 000
----------------------- ---------------- ---------------- ----------------------- -------------------- ----------
At 1 January 2020 - 23,111 2,204 (14,982) 10,333
----------------------- ---------------- ---------------- ----------------------- -------------------- ----------
Loss for the period - - - (5,123) (5,123)
----------------------- ---------------- ---------------- ----------------------- -------------------- ----------
Total comprehensive
loss - - - (5,123) (5,123)
----------------------- ---------------- ---------------- ----------------------- -------------------- ----------
Share-based payment
transactions - - 1,087 - 1,087
----------------------- ---------------- ---------------- ----------------------- -------------------- ----------
At 30 June 2020
(unaudited) - 23,111 3,291 (20,105) 6,297
----------------------- ---------------- ---------------- ----------------------- -------------------- ----------
Share-based payment
reserve
Share capital Share premium Retained earnings
Total
----------------------- ---------------- ---------------- ----------------------- -------------------- ----------
GBP 000 GBP 000 GBP 000 GBP 000 GBP 000
----------------------- ---------------- ---------------- ----------------------- -------------------- ----------
At 1 January 2021 - 30,322 4,378 (28,245) 6,455
----------------------- ---------------- ---------------- ----------------------- -------------------- ----------
Loss for the period - - - (12,667) (12,667)
----------------------- ---------------- ---------------- ----------------------- -------------------- ----------
Total comprehensive
loss - - (12,667) (12,667)
----------------------- ---------------- ---------------- ----------------------- -------------------- ----------
Share-based payment
transactions - - 1,845 - 1,845
----------------------- ---------------- ---------------- ----------------------- -------------------- ----------
Issue of share capital
in PensionBee
Limited - 4,765 - - 4,765
----------------------- ---------------- ---------------- ----------------------- -------------------- ----------
Group reorganisation 180 (35,088) - 34,908 -
----------------------- ---------------- ---------------- ----------------------- -------------------- ----------
Issue of share capital
in PensionBee
Group plc 33 54,967 - - 55,000
----------------------- ---------------- ---------------- ----------------------- -------------------- ----------
Transaction costs on
issue of shares - (1,748) - - (1,748)
----------------------- ---------------- ---------------- ----------------------- -------------------- ----------
Exercise of share
options 8 - - (8) -
----------------------- ---------------- ---------------- ----------------------- -------------------- ----------
At 30 June 2021
(unaudited) 221 53,218 6,223 (6,012) 53,650
----------------------- ---------------- ---------------- ----------------------- -------------------- ----------
The notes form an integral part of these consolidated financial
statements.
Interim Consolidated Statement of Cash Flows
for the Period from 1 January 2021 to 30 June 2021
--------------------------------------------------------------------------------------------------------------------
Unaudited Unaudited
six months to Six months to
30 June 2021 30 June 2020
------------------------------------------------------------------------------------ -------------- --------------
Note GBP 000 GBP 000
------------------------------------------------------------------------------------ -------------- --------------
Cash flows used in operating activities
------------------------------------------------------------------------------------ -------------- --------------
Loss for the period (12,667) (5,123)
------------------------------------------------------------------------------------ -------------- --------------
Adjustments to cash flows from non-cash items
------------------------------------------------------------------------------------ -------------- --------------
Depreciation 124 118
------------------------------------------------------------------------------------ -------------- --------------
Finance costs 205 6
------------------------------------------------------------------------------------ -------------- --------------
Share based payment transactions 1,953 1,087
------------------------------------------------------------------------------------ -------------- --------------
Taxation 6 (100) (97)
------------------------------------------------------------------------------------ -------------- --------------
Operating cash flow before movement in working capital (10,485) (4,009)
------------------------------------------------------------------------------------ -------------- --------------
Working capital adjustments
------------------------------------------------------------------------------------ -------------- --------------
Increase in trade and other receivables 8 (1,867) (401)
------------------------------------------------------------------------------------ -------------- --------------
Increase/(decrease) in trade and other payables 11 3,083 (179)
------------------------------------------------------------------------------------ -------------- --------------
Cash used in operations (9,269) (4,589)
------------------------------------------------------------------------------------ -------------- --------------
Income taxes received 6 - 176
------------------------------------------------------------------------------------ -------------- --------------
Net cash flow used in operating activities (9,269) (4,413)
------------------------------------------------------------------------------------ -------------- --------------
Cash flows used in investing activities
------------------------------------------------------------------------------------ -------------- --------------
Purchase of property plant and equipment (3) -
------------------------------------------------------------------------------------ -------------- --------------
Net cash flows used in investing activities (3) -
------------------------------------------------------------------------------------ -------------- --------------
Cash flows from/(used in) financing activities
------------------------------------------------------------------------------------ -------------- --------------
Proceeds from issue of ordinary shares 59,765 -
------------------------------------------------------------------------------------ -------------- --------------
Transaction costs on issue of shares (1,748) -
------------------------------------------------------------------------------------ -------------- --------------
Payment of finance costs (359) -
------------------------------------------------------------------------------------ -------------- --------------
Repayment of lease liability (75) (75)
------------------------------------------------------------------------------------ -------------- --------------
Net cash flows from/(used in) financing activities 57,583 (75)
------------------------------------------------------------------------------------ -------------- --------------
Net increase/(decrease) in cash and cash equivalents 48,311 (4,488)
------------------------------------------------------------------------------------ -------------- --------------
Cash and cash equivalents at 1 January 6,736 10,191
------------------------------------------------------------------------------------ -------------- --------------
Cash and cash equivalents at 30 June 55,047 5,703
------------------------------------------------------------------------------------ -------------- --------------
The notes form an integral part of these consolidated financial statements.
Notes to the Financial Statements
for the Period from 1 January 2021 to 30 June 2021
1. Corporate Information
The interim consolidated financial statements of PensionBee Group plc and its subsidiaries
(collectively, the Group) for the six months ended 30 June 2021 were authorised for issue
in accordance with a resolution of the directors on 20 September 2021.
PensionBee Group plc ('The Company') is a public limited company, whose shares are traded
on the High Growth Segment of the London Stock Exchange (LSE), incorporated and domiciled
in England and Wales.
The address of its registered office is:
City Place House
55 Basinghall Street
London
EC2V 5DX
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 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 interim 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
Limited's annual financial statements as at 31 December 2020.
Summary of significant accounting policies and key accounting estimates
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.
Acquisition of PensionBee Limited by PensionBee Group plc
On 24 March 2021, PensionBee Group plc acquired all the issued shares of PensionBee Limited
through a share for share transaction. From the acquisition date, PensionBee Limited became
a subsidiary of PensionBee Group plc. On the same date, all the share options granted by PensionBee
Limited to its employees were cancelled and replaced by share options granted by PensionBee
Group plc.
The balance sheet at 31 December 2020 represents PensionBee Limited prior to the formation
of the Group. The balance sheet at 30 June 2021 represents the Group.
Audit requirements
The financial information for the six months ended 30 June 2021 is not audited by Deloitte
LLP and accordingly no opinion has been given. The comparative financial information for the
year ended 31 December 2020 has been extracted from the Annual Report & Accounts 2020. 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 Limited's Annual Report & Accounts 2020. The annual financial statements
for the year ended 31 December 2020, which were approved by the Board of Directors on 9 April
2021, 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 2021 have had a material effect on the 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 following are the key sources of estimation uncertainty that the directors have made in
the process of applying the Groups 's accounting policies and that have the most significant
effect on the amounts recognised in the Interim Consolidated Financial Statements.
Share-based payments
The Group recognises an expense based on the likelihood of options vesting under the EMI,
non-EMI Share Options Scheme and the Deferred Share Bonus Plan (DSBP). The total expense is
recognised over the vesting period, which is the period over which all the specified vesting
conditions are to be satisfied. At the end of each period, estimates are revised to determine
the charge for the year. The impact of the revision to original estimates, if any, are recognised
in the Statement of Comprehensive Income, with a corresponding adjustment to equity.
The options vest in tranches over a service period of four years. The exercise period is up
to ten years from the grant date. DSBP awards are granted at the end of the financial year
once the annual bonus outturn has been determined and they vest in a little more than four
financial years subject to continued service only.
At each reporting date, an estimate is made of the number of employees that will remain in
service until their options or DSBP awards vest (non-market condition). No expense is recognised
for options and DSBP awards that do not ultimately vest. A 5% change in employees retention
rate will have a 3% impact on the charge for the period.
4. Revenue
The analysis of the Group's revenue for the period from continuing operations is as follows: Unaudited Unaudited
six months to six months to
30 June 30 June
2021 2020
GBP 000 GBP 000
Recurring revenue 5,267 2,533
Other revenue 128 52
-------------- ----------------
5,395 2,585
The revenue was wholly derived from the
United Kingdom.
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 and, therefore, recognises one operating
and reporting segment with all revenue, losses before tax and net assets are attributable
to this single reportable business segment.6. Tax
Tax credited in the income statement
Unaudited Unaudited
six months to six months to
30 June 2021 30 June 2020
GBP 000 GBP 000
Current taxation
UK corporation tax 100 97
Deferred taxation
Arising from origination and reversal of - -
temporary differences
Tax expense in the income statement 100 97
Tax credit in the income statement 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 Group by the weighted average number of ordinary shares in issue during the
period.
Diluted earnings per share are calculated by dividing the loss attributable to ordinary equity
holders of the Group adjusted for the effect that would result from the weighted average number
of ordinary shares plus the weighted average number of shares that would be issued on the
conversion of all the dilutive potential shares under option. 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 to six months to 30 June 2020
30 June 2021
Number of potential ordinary shares 4,317,196 11,839
Loss attributable to equity holders of
PensionBee Group plc
(2020: PensionBee Limited) (GBP) (12,667,000) (5,123,000)
Weighted average number of shares
outstanding during the
period - basic and diluted 193,813,469 214,276
Basic and diluted loss per share (pence
per share) (6.54) (2,389.88)
8. Trade and other receivables Unaudited Audited
30 June 2021 31 December 2020
GBP 000 GBP 000
Trade receivables 1,003 708
Prepayments and accrued income 2,098 371
Other receivables 715 427
3,816 1,506
9. Share capital
Allotted, called up and fully paid shares Unaudited Audited
30 June 2021 31 December 2020
No. 000 GBP 000 No. 000 GBP 000
Ordinary of GBP0.001 each 221,213 221 221 -
221,213 221 221 -
Shares at 31 December 2020 represents that of PensionBee Limited, shares at 30 June 2021 represent
that of PensionBee Group plc.
10. Loans and borrowing
Revolving Credit Facility
On 22 March 2021, the Group entered into a revolving credit facility for up to GBP10 million
with National Westminster Bank Plc as part of prudent capital management to provide it with
further liquidity resources going forward.
As at 30 June 2021, no amounts have been drawn from the facility. Unamortised arrangement
fees for the facility of GBP249,000 are included within prepayments.
11. Trade and other payables Unaudited Audited
30 June 2021 31 December 2020
GBP 000 GBP 000
Trade payables 3,415 749
Accrued expenses 1,937 1,200
Other payables 17 42
5,369 1,991
12. Financial assets and financial liabilities
The carrying value of the financial assets and liabilities are not materially different from
their fair value.
13. Share-based payments
PensionBee 2015 EMI Share Option Scheme
Scheme details and movements
Under the PensionBee 2015 EMI Share Option Scheme share options were granted to the senior
management of PensionBee. The exercise price of the share options was GBP0.001 on the date
of grant.
The share options vested as follows:
(a) 33% of the shares on the first anniversary of the vesting commencement date; and
(b) the remaining 67% of the shares monthly in equal instalments over the following two years,
so the options were fully vested on the third anniversary of the vesting commencement date.
At 30 June 2020 all options have been fully exercised and there is no intention to issue any
further options under this scheme.
The fair value of equity-settled share options granted is estimated as at the date of grant,
considering the terms and conditions upon which the options were granted.
The fair value of the share options granted is estimated at the date of grant by reference
to the market value of the share. This market value is determined by that set by periodic
funding valuations.
The exercise period is up to ten years from the grant date. There are no cash settlement alternatives.
The weighted average share option exercise price at date of exercise was GBP0.001. No shares
were exercised in 2020.
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 PensionBee. The exercise price of all
share options is GBP0.001 per share.
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 at the date of grant by reference
to the market value of a share. In the prior period, the market value of a share was determined
by reference to the price paid by external investors as part of periodic funding rounds.
The weighted average fair value of share options granted during the six months ended 30 June
2021 was GBP1.65 (30 June 2020: GBP1,081.36. IPO impact adjusted fair value is GBP1.35).
In the prior period, share options could be exercised upon the occurrence of an exit event,
a takeover, reconstruction, liquidation and sale of the business, to the extent they have
vested. In the event that there has been no exit event before the tenth anniversary of the
date of grant, the Directors may determine that an option holder may exercise their option
in the 30 day period before such anniversary.
Total number of shares exercised during the six months ended 30 June 2021 is 8,124,404 (30
June 2020: GBPnil).
The total charge for the six months ended 30 June 2021 for share-based payments was GBP1,845,000
(30 June 2020: GBP1,087,000).
Deferred Share Bonus Plan
Scheme details and movements
The PensionBee DSBP is granted to eligible employees at the end of the financial year once
the annual bonus outturn has been determined. The awards are issued at no cost.
The awards vest in a little over four financial years, the annual bonus year in which performance
is determined, the period to grant and the three subsequent years in which it is deferred.
As DSBP awards are granted with dividend equivalents, the fair value of the awards will be
the share price at grant.
The total charge for the six months ended 30 June 2021 for share-based payments was GBP107,234
(30 June 2020: GBPnil).
14. Significant events
Ex-gratia payment to PensionBee Trustees Limited
Over the period 18 November 2020 to 5 February 2021 FTSE Russell incorrectly excluded certain
eligible constituents from an index (FTSE All Share ex Controversies, ex CW) widely used by
State Street Global Advisors (SSGA) across several of its funds. This incorrect exclusion
resulted in an adverse effect on the returns of consumers invested in the affected funds.
The incorrect exclusion affected PensionBee Limited customers who were invested in the PensionBee
Tracker Plan. The error was estimated to have reduced the performance of the affected plan
by 0.3% which equates to approximately GBP664,000 for c.8,500 customers (c.GBP78 per customer).
Recognising that this was an exceptional event and wishing to ensure that its customers were
not adversely affected, PensionBee Limited paid for, on an ex-gratia basis, the balances of
its affected customers to be restored to the position they would have been in had FTSE Russell
included all eligible constituents. This payment was not out of obligation but PensionBee
Limited's desire to protect its customers and reputation. As at the signing of its Annual
Report, PensionBee Limited was seeking redress from the responsible parties.
At 30 June 2021, the Group had received confirmation from SSGA that the full balance would
be refunded along with a notional goodwill payment. The balance receivable is included in
accrued income (note 8) at 30 June 2021, and was received on 5 July 2021, with the net goodwill
payment recorded in other revenue.
15. Principal risks and uncertainties
The Board continually review the principal risk 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 if the financial year remain unchanged from those presented within the
2020 annual report.
16. Related party transactions
Related party - Trustee's
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 2021 bank fees amounted to GBP15,900 (30 June 2020: GBP6,100). There
was no outstanding balance at six months ended 30 June 2021 (30 June 2020: GBPnil).
(ii) Compensation payments as a gesture of goodwill to customers that prefer to be compensated
via a pension contribution or the purchasing additional units. During the six months ended
30 June 2021, these costs amounted to GBP6,400 (30 June 2020: GBP35,600). There was no outstanding
balance at six months ended 30 June 2021 (30 June 2020: GBPnil).
(iii) Other payments to customers (e.g., referral rewards) Payments are made from PensionBee
and invested into the customers fund from the PensionBee Trustees account. These payments
can be found in 'Other Expenses' and 'Advertising and Marketing'. During the six months ended
30 June 2021 these costs amounted to GBP132,600 (30 June 2020: GBP53,000). There was no outstanding
balance at six months ended 30 June 2021 (30 June 2020: GBPnil).
Transactions with Directors
During the six months ended 30 June 2021, PensionBee Limited made a payment to HMRC on behalf
of Mark Wood (GBP105,279) and Joe Suddaby (GBP74,550). Both will reimburse PensionBee Limited.
During the year ended 31 December 2020, PensionBee was repaid in full an outstanding balance
of GBP200 from R Savova. R Savova is a director and shareholder in PensionBee. The loan was
interest free and repayable upon demand.
17. Non adjusting events after the financial period
Revolving Credit Facility
On 20 September 2021, PensionBee gave notice under its Revolving Credit Facility ("RCF") agreement
with National Westminster Bank Plc to voluntarily cancel its GBP10 million facility which
was otherwise due to terminate in March 2024. As of 20 September 2021, the facility was undrawn,
and the Directors anticipated the facility would likely remain undrawn until its termination.
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 transaction costs. Unaudited Unaudited
six months to six months to
30 June 2021 30 June 2020
GBP0 GBP0
Operating loss (12,562) (5,214)
Depreciation expense 124 118
Share-based payment (1) 1,953 1,087
Transaction costs (2) 2,898 -
--------------- ---------------
Adjusted EBITDA (7,587) (4,009)
Marketing costs 6,100 2,855
--------------- ---------------
Adjusted EBITDAM (1,487) (1,154)
--------------- ---------------
(1) Relates to total annual charge in relation to share based payment expense as detailed
in note 13 to the Interim financial statements.
(2) Relates to expenses incurred in relation to preparation for admission to the London Stock
Exchange.
Definitions
----------------------------------------------------------------------------------------------------------------------
Assets under Administration Assets under Administration (AUA) is the total invested value of pension assets
(AUA) within PensionBee
Invested Customers' pensions. It measures the new inflows less the outflows and
records a
change in the market value of the assets. AUA is a measurement of the growth of the
business
and is the primary driver of Revenue.
------------------------------- -------------------------------------------------------------------------------------
AUA Retention Rate AUA Retention measures the percentage of retained PensionBee AUA from Transfer Outs
(% of AUA) over the
average of the year. High AUA retention provides more certainty of future Revenue.
This measure
can also be used to monitor customer satisfaction.
------------------------------- -------------------------------------------------------------------------------------
Registered Customers Registered Customers (RC) measures customers who have started the sign-up process
(RC) and have
submitted at least a name and an email address and includes those customers who are
classified
as Active Customers.
------------------------------- -------------------------------------------------------------------------------------
Active Customers Active Customers means all customers who have requested to become an Invested
(AC) Customer by
accepting PensionBee's terms of business but for whom the transfer or contribution
process
is not yet completed and all customers who are classified as Invested Customers.
------------------------------- -------------------------------------------------------------------------------------
Invested Customers Invested Customers (IC) means those customers who have transferred pension assets or
(IC) made
contributions into one of PensionBee's investment plans.
------------------------------- -------------------------------------------------------------------------------------
Customer Retention Rate Customer Retention Rate measures the percentage of retained PensionBee Invested
(% of IC) Customers
over the average of the year. High customer retention provides more certainty of
future Revenue.
This measure can also be used to monitor customer satisfaction.
------------------------------- -------------------------------------------------------------------------------------
Cost per Invested Customer Cost per Invested Customer (CPIC) means the cumulative advertising and marketing
(CPIC) costs incurred
since PensionBee commenced trading 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.
------------------------------- -------------------------------------------------------------------------------------
Same Year RC:IC Conversion Same Year RC:IC Conversion percentage is calculated by dividing the number of
(% of RC) Invested Customers
as at the end of the period by the number of Registered Customers at the end of the
period.
This measure monitors PensionBee's ability to convert customers through the
acquisition funnel.
------------------------------- -------------------------------------------------------------------------------------
Contractual Revenue Margin Contractual Revenue Margin means the weighted average contractual fee rate across
(% of AUA) PensionBee's
investment plans (before applying any size discount) calculated by reference to the
amount
of AUA held in each plan across the period.
------------------------------- -------------------------------------------------------------------------------------
Annual Run Rate (ARR) Revenue Annual Run Rate (ARR) Revenue is calculated using the Recurring Revenue for the
relevant month
multiplied by 12.
------------------------------- -------------------------------------------------------------------------------------
Adjusted EBITDA Adjusted EBITDA is the profit or loss for the year before taxation, finance costs,
depreciation,
share-based payment and transaction costs.
------------------------------- -------------------------------------------------------------------------------------
Adjusted EBITDA Margin Adjusted EBITDA Margin means Adjusted EBITDA as a percentage of Revenue for the
relevant period.
------------------------------- -------------------------------------------------------------------------------------
Basic Earnings per Share (EPS) Basic Earnings per Share is calculated by dividing the loss attributable to ordinary
equity
holders of the Group by the weighted average number of ordinary shares in issue
during the
period.
------------------------------- -------------------------------------------------------------------------------------
Company Information
PensionBee Executive Directors
Romi Savova (Chief Executive Officer)
Jonathan Lister Parsons (Chief Technology Officer)
PensionBee Non-Executive Directors
Mark Wood CBE (Independent Chairman)
Mary Francis CBE (Senior Independent Non-Executive Director)
Michelle Cracknell CBE (Independent Non-Executive Director)
Company Secretary
Prism Cosec Limited
Highdown House
Yeoman Way
Worthing
West Sussex
BN99 3HH
United Kingdom
Registered Number
13172844
Registered Office
City Place House
55 Basinghall Street
London
EC2V 5DX
United Kingdom
Auditor
Deloitte LLP
4 Brindley Pl
Birmingham
B1 2HZ
United Kingdom
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
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IR VBLFLFKLZBBQ
(END) Dow Jones Newswires
September 21, 2021 02:00 ET (06:00 GMT)
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