RE: Results and AGM RNS17 Jun 2021 11:12
Key points like these?
Performance of the business dur- ing the period and the position at year end.
Revenue for the year increased significantly from £2k to £450k, with a limited marketing spend of £188k. This was attributable to the launch of our Bitcoin trading functionality, as well as the Global Services payments platform, which saw a significant increase in both payments and marketing activity, as UK merchants took advantage of the online ecommerce payment platform to connect with the sizable Chinese consumer base via WeChat and Alipay.
Trading conditions were strongest in the last quarter of the year as we benefited from Bitcoin’s increase in retail and institu- tional following, the publicity from the IPO in October, as well as from adding Bitcoin to our balance sheet at a similar time to when other large financial institutions were announcing their involvement in cryptocur- rencies.
Administrative expenses were £3.7m (2019: £2.3m) increasing by £1.4m (63%) during the period. This was driven by higher people costs (£0.8m), a share option expense of £0.3m and £0.3m of additional fees from the IPO.
The unwinding of the Convertible Loan note and the expected discounted paya- ble interest for the loan note having re- duced, resulted in Investment Revenue of £360k.
Finance Costs fell slightly to £284k (2019: £312k) due to the shorter effective interest period as the convertible loan note passed a trigger event from the IPO on 5th Oc- tober 2020, converting both the principal and interest into equity.
Cash Balances ended the year at £5.4m (2019: £2.6m). The increase reflects the £7.5m gross funds raised from the listing, further bolstered by the additional equity placing in February 2021 for £6m (see post balance sheet events).
Lastly, Other Comprehensive Income reflects the £455k increase in our Bitcoin investment, an increase of 120%. This was the result of our Bitcoin Investment Strate- gy to allocate up to 10% of the funds raised at IPO to invest in Bitcoin.
Some of the Key Performance Indicators used to monitor the success of our business are set out on page 12 and 13. These will likely change in the next Annual Report as new products and services are added to the Mode App.
100% agree, they could have had something, anything! in there instead of directing to the website to digest a presentation. All good news though.
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