Last checked at 28 Jun 2022 07:00
Mode Global Holdings reports full year 2021 financial results
● Firm reports 261% increase in user base
● 732% volume increase in trading activity
● 192% increase in revenue
London, June 27, 2022 - Mode Global Holdings PLC (LSE: MODE), the LSE-listed Fintech Group, has today released its full year financial results for 2021.
The firm entered 2021 with a clear focus on building and enhancing its product set, whilst also increasing its user base, which it achieved successfully. Users grew by 261% over the 12 months, with 70% of trading customers being repeat buyers. Trading volume increased by 732% compared to the same period in 2020. On average, Mode customers had a trading volume of £2,995, and an average Bitcoin balance of £1,330.
Following its successful listing on the London Stock Exchange in 2020, and round of share placing in 2021, the resulting strong cash reserves allowed the Group to accelerate ambitious development plans, including the launch of a first of its kind QR code payment solution and the Bitcoin Cashback loyalty and rewards programme. The firm also increased its Bitcoin Treasury holding, keeping it on its balance sheet to protect against currency debasement.
In 2022, Mode will look to increase the app's user base and grow revenue, as it seeks to offer services to people at all levels of the crypto spectrum, from crypto curious to crypto native. In preparation for 2022's growth, Mode has extensively expanded and developed its risk management framework.
In addition, Mode has received irrevocable commitments from new and existing investors to subscribe for £1,935,000 of convertible loan notes. The loan notes, which carry a coupon of 8%, are convertible into Mode's Ordinary Shares.
Rita Liu, Mode CEO comments: "2021 was a big year for Mode. Our aim was to grow our user base and give them the products they want. Put simply, we achieved what we set out to do.
Mode is a rarity on the LSE - a crypto-driven fintech which has obtained regulatory oversight via EMI and FCA registration. Those accreditations demonstrate that we are leading the way in the UK's digital asset industry. The prudent and sustainable approach we have adopted from day one will also help the firm navigate current market volatility, thanks to our strong risk management framework. Clearly 2021 has been a year of innovation, development and growth and we will continue to build on this momentum in 2022."
Jonathan Rowland, Mode Global Holdings Chairman adds: "These results are very pleasing. The focus in 2021 was on product development and growth. The delivery of these ambitious growth plans did see operating costs increase in 2021. A combination of hiring more talent and costs associated with advertising and the listing saw these go up as we anticipated they would.
However, the revenue increases we are reporting are a clear indicator that our proposition is a compelling one. In addition, our successful oversubscribed convertible loan also shows that despite recent market volatility in crypto and tech, Mode continues to attract strong interest from the investor community. Mode is uniquely positioned to lead the next wave of crypto adoption and evolution and as a business we are primed for fast future growth in 2022 and beyond."
2021 financial summary:
● Revenue jumped from £450k in 2020 to £1,313k in 2021
● Administrative costs increased by £5,864k due to higher people costs (£4,161k) and share option expenses (743k)
● Advertising spend increased from £188k in 2020 to £1,394k in 2021 to help drive revenue growth
Business highlights:
● FCA registration and EMI licence
● Successful share placement
● Users grew by 261% over the 12 months
● 70% of trading customers are repeat buyers.
● On average, customers had a trading volume of £2,995, and an average Bitcoin balance of £1,330.
● QR-code payments solution launched
● Bitcoin Cashback and loyalty programme launched
● Bitcoin Payroll product launched
The Annual Report & Accounts will shortly be available to download from the Company's website at https://www.modeplc.com/investors/results-reports-presentations
These documents have also been submitted to the National Storage Mechanism and will shortly be available for inspection at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
-ENDS-
Press contacts:
Fiona McAra, MRM
+44 (0)7471 350286
mode@mrm-london.com
Julie Sand, Mode Global Holdings PLC
+44 (20) 3773 0588
julie.sand@modeapp.com
Notes to Editors
About Mode:
Mode is an LSE-listed fintech company on a mission to build the world's most disruptive ecosystem where exchanging value and growing wealth is seamless for all. Mode is leveraging the power of Bitcoin and Open Banking to deliver on this mission and offer customers in the UK a one-stop app to shop, earn and grow their Bitcoin, all in one place. For businesses, Mode provides a cheaper, safer and smarter alternative to card payments that rewards shoppers with Bitcoin Cashback.
To learn more, visit our customer/business site at www.modeapp.com or our investor site at www.modeplc.com.