29 June 2020
Positive financial progress driven by transition towards a B2B facing,
integrated money management provider
Equals (AIM:EQLS), the fast-growing B2B focused e-banking and international payments group, announces its preliminary results for the year ended 31 December 2019 (the ‘period’ or ‘FY-2019’) and an update on the Group’s trading in FY-2020.
Download These Results are available in PDF format. |
FY-2019 Financial Summary
£million | FY-2019 | FY-2018 | % Change |
(restated)** | |||
Underlying transaction values | 2,887 | 2,369 | +21.8% |
- B2B | 2,088 | 1,187 | +75.9% |
- B2C | 799 | 1,182 | -32.4% |
Revenue | 30.9 | 26.1 | +18.6% |
- B2B | 17.3 | 9.5 | +81.2% |
- B2C | 13.6 | 16.6 | -18.1% |
Gross profit | 20.6 | 17.5 | +17.7% |
Adjusted EBITDA* | 9.1 | 7.5 | +21.3% |
(Loss)/profit after taxation | (5.4) | 2.6 |
FY-2019 Group Highlights
FY-2020 Trading Update
Commenting on the Preliminary Results, Ian Strafford-Taylor, CEO of Equals Group plc, said:
“I am pleased to report that 2019 was a positive year of revenue and profit growth for Equals, and, crucially, our strategy to refocus the business on higher margin B2B customers with a diverse range of integrated money management products is paying off as our revenue mix moves away from our legacy FX business and B2C customers.
“The Covid-19 pandemic has affected the business, but revenues have returned to more normalised levels in most business lines since the initial impact in late March, April and May. Our teams have transitioned to remote working well, with the investment in improved technical infrastructure benefitting our operations.
“Supported by our recent fundraise, we look forward to the future with confidence as we continue to expand our product range and make selective acquisitions when opportunity presents. Equals is well positioned in the current market with a deep pool of active customers driving progress across the business.”
Analyst meeting
A conference call for analysts hosted by Ian Strafford-Taylor (CEO) and Richard Cooper (CFO) will be held at 09.30am today, 29 June 2020. A copy of the Preliminary Results presentation is available at the Group’s website: https://www.equalsplc.com.
For retail investors, an audio webcast of the conference call with analysts will be available after 12pm today:
https://webcasting.buchanan.uk.com/broadcast/5eec538f5e278421d06990c3
Notes
*Adjusted EBITDA is defined as Earnings before: depreciation, amortisation, impairment charges, share option charges, but after R&D tax credits. The Group changed its policy for accounting for R&D tax credits from IAS20 to IAS 12. Whilst this has no impact on the retained result, EBITDA has been adjusted to include these amounts in line with accounting at the 2019 interims.
**Change in accounting policy
During the year, the Group changed its accounting policy for research and development tax credits (R&D tax credit) which had previously been accounted for under IAS 20 Accounting for Government Grants and Disclosure of Government Assistance. The Group believes that accounting for the R&D tax credit is more appropriate under IAS 12 Income Taxes which better reflects the substance and benefit of the credit. Under IAS 20 Accounting for Government Grants and Disclosure of Government Assistance, the R&D tax credit, was deducted from administration expenses on a systemic basis. Under IAS 12 Income Taxes the R&D tax credit is included within tax credit / expense in the year that the claim relates to.
A change in accounting policy requires a retrospective adjustment and consequently the comparatives amounts have been restated. In 2018 an adjustment of £0.3 million has been deducted from administrative costs and a corresponding amount included as a tax credit. There is no adjustment to earnings per share or retained earnings. In 2019, £3.4 million has been recognised as tax credit. No periods prior to 2018 have been affected by the change in accounting policy.
For further information, please contact:
Equals Group plc Ian Strafford-Taylor, CEO Richard Cooper, CFO |
Tel: +44 (0) 20 7778 9308 www.equalsplc.com |
Cenkos Securities plc (Nominated Advisor / Joint Broker) Max Hartley / Callum Davidson Nick Searle (Sales) |
Tel: +44 (0) 20 7397 8900 |
Canaccord Genuity (Joint Broker) Bobbie Hilliam / David Tyrrell Alex Aylen (Sales) |
Tel: +44 (0) 20 7523 8150 |
Buchanan (Financial Communications) Henry Harrison-Topham / Steph Watson / Toto Berger [email protected] |
Tel: +44 (0) 20 7466 5000 www.buchanan.uk.com |
Notes to Editors:
Equals is a leading challenger brand in banking and payments that disintermediates the incumbent banks with a superior user experience and low-cost operating model. The Group enables its personal and business customers to make easy, low-cost payments both domestically and in a broad range of currencies across a range of products all via one integrated system.
Equals provides money movement services to both business and personal customers through five inter-connected channels - International Payments, Corporate Expenses platform, Bank Accounts, Travel Money (comprising currency cards and physical currency). International Payments channel supports wire transfer foreign exchange transactions direct to bank accounts. For corporates, Equals has a market-leading business-expenses solution based around its corporate platform and prepaid card which yields significant cost savings via tighter control on expenses before they are incurred coupled with eliminating inefficient processes. Equals also offers business and retail bank accounts with all the functionality offered by banks, namely faster payments, BACs, direct debits, international payments and a debit card. The Travel Money offerings (retail currency card and physical currency) represent cost-effective and secure methods for travelers to spend abroad.
My statement this year focuses on three distinct themes: the first looks back at the Group’s achievements and its performance in FY-2019; the second reports on how, post year-end, the Group has faced-up to, and successfully dealt with, the challenges posed by the Covid-19 pandemic; and the third, deals with the Group’s current trading and future prospects.
The Group has two distinct customer groupings; business customers are referred to as “B2B,” whereas retail customers are referred to as “B2C.”
FY-2019 was a highly successful year for the Group.
Covid-19 Response
2020 has seen global volatility caused by the Covid-19 pandemic. Equals has not been immune to this but the technology improvements made by the Group meant that all employees have been able to successfully work from home. Currently there are around one fifth of the staff under furlough but redundancies have been kept to a minimum. All employees including the Board and senior management agreed to a temporary 20% reduction in their remuneration over a three month period until greater visibility of the market has been possible.
The travel related products (bureau de change and retail pre-load travel cards) were, impacted almost immediately with revenues down 87% on the comparative period in 2019. To put this into context, this represented 29% of revenue in 2019 and is now only 4% of a significantly higher income base up to 26 June 2020.
The full financial consequences of Covid-19 are of course yet unknown, but profound. However, with the steps already taken by the Group together with further contingency planning, the board believes the Group remains in a strong position to move quickly to not only respond to market movements but look for emerging opportunities.
The Group is in the fortunate position of having no bank borrowing and thus has protected its cash position. At the time of writing the Group’s free cash resources stood at £7.7 million.
Current trading and Outlook
Revenue streams in both the B2B segment and retail banking appear robust after the expected reduction in late March and April 2020. Revenue per day (excluding ‘travel cash’) rose to £103.4k in Q1-2020 (Q1-2019: £72k) and were £91k per day in the period 1 April to 25 June 2020 (Q2-2019: £86k). Despite the continued impact of Covid-19, in June 2020 revenues per day have averaged £113k (June 2019, excluding travel cash, £111k per day).
The Board remains optimistic about the Group’s outlook. The Non-Executive Directors and I would like to thank the executive team and all our staff who have worked so diligently to position the Group so well.
Finally, following many years of growth, we are finalising the next stage of our succession plan and tomorrow, at our Annual General Meeting, I will welcome Alan Hughes to the Chair. Alan’s significant experience in the sector speaks for itself and I look forward to working with him and continuing to serve Equals as a Non-Executive Director.
John Pearson Chairman 25 April 2019 |
International Payments | Equals Pay |
White label payments | Equals Connect |
Banking | Equals Money |
Corporate expense control platform | Equals Spend |
Travel cards and travel money | Equals Go |
In £millions | Note ref |
2019 | 2018 |
Underlying transaction values – FX | A1 | 2,117.5 | 1,783.7 |
Underlying transaction values - Banking | 769.4 | 585.5 | |
2,886.9 | 2,369.2 | ||
In £000’s | |||
Revenue | A2 | 30,945 | 26,092 |
Less: Variable costs | A3 | (10,378) | (8,551) |
Gross profits | A4 | 20,567 | 17,541 |
Less: Marketing* | A5 | (2,037) | (2,768) |
Contribution | 18,530 | 14,773 | |
Gross expenditure | A6 | (21,261) | (12,823) |
Capitalised | 8,307 | 5,251 | |
Net expenditure | (12,954) | (7,572) | |
R&D credits | 3,479 | 311 | |
Adjusted EBITDA* | 9,055 | 7,512 |
£000’s | Notes | Operating | Finance | Taxation | Loss after |
loss | charges | taxation, | |||
2019 | |||||
Adjusted EBITDA | 9,055 | - | - | 9,055 | |
Separately reported |
(3,423) | - | - | (3,423) | |
Other items: |
|||||
IFRS 16 depreciation | (918) | - | (918) | ||
IFRS 16 finance charges | - | (234) | - | (234) | |
Other Depreciation | A8 | (430) | - | - | (430) |
Amortisation | A9 | (2,831) | - | - | (2,831) |
Impairment | A12 | (4,859) | - | - | (4,859) |
Share option charges | (123) | - | - | (123) | |
FX and similar | A11 | (238) | - | - | (238) |
Acquisition costs | (478) | - | - | (478) | |
Deferred taxation | - | - | (928) | (928) | |
Other tax credits | - | - | 35 | 35 | |
R&D tax credits | A13 | (3,479) | - | (3,479) | - |
(7,724) | (234) | 2,586 | (5,372) |
£000’s | Notes | Operating | Finance | Taxation | Loss after |
loss | charges | taxation, | |||
2018 | |||||
Adjusted EBITDA | 7,512 | - | - | 7,512 | |
Separately reported |
(3,543) | - | - | (3,543) | |
Other items: |
|||||
Depreciation | A8 | (200) | - | (200) | |
Amortisation | A9 | (1,318) | - | - | (1,318) |
Impairment | - | - | - | - | |
Share option charges |
(54) | - | - | (54) | |
FX and similar | A11 | (20) | - | - | (20) |
Acquisition costs |
(297) | - | - | (297) | |
Deferred taxation |
- | - | 956 | 956 | |
Other tax credits |
- | - | (417) | (417) | |
R&D tax credits | (312) | - | (312) | - | |
1,767 | - | 850 | 2,617 |
International payments: | funds sold by customers to acquire currency |
Cards: | funds loaded by customers onto their cards |
Cash: | funds sold by customers to acquire another currency |
Banking: | funds deposited by customers |
The split of Underlying transaction values by segment is as below:
Table 2
£millions |
International | Cards | Cash | Total FX | Banking | TOTAL |
Payments | ||||||
B2B |
||||||
2019 | 1,214 | 271 | - | 1,485 | 604 | 2,088 |
2018 | 766 | 173 | 8 | 947 | 240 | 1,187 |
% Change on year | 58% | 57% | - | 57% | 152% | 76% |
B2C | ||||||
2019 | 348 |
161 | 124 | 633 | 166 * | 799 |
2018 | 482 | 219 | 135 | 836 | 346 * | 1,182 |
% Change on year | -28% | -26% | -9% | -24% | -52% | -32% |
TOTALS | ||||||
2019 | 1,562 | 432 | 124 | 2,177 | 770 | 2,887 |
2018 | 1,248 | 392 | 143 | 1,783 | 586 | 2,369 |
% Change on year | 25% | 10% | -14% | 19% | 31% | 22% |
Payments – Underlying transaction values increased 25% from £1,248 million to £1,562 million and included £233 million of Underlying transaction values from acquisitions made in the year. The organic focus was to de-emphasise lower margin retail customers, thus, B2C Underlying transaction values decreased by 28% but organic B2B Underlying transaction values increased by 26% to £967 million (2018: £766 million).
Card Underlying transaction values increased by 10% to £432 million, with B2B growing by 56% and B2C decreasing by 26%. This can be attributable to lower travel demands given the Brexit uncertainties.
The total number of card loads were as follows:
Table 3
Card load data | 2019 | 2018 | % |
Total number of card loads in 000’s | change | ||
-B2B | 545 | 403 | 35% |
-B2C | 409 | 487 | -16% |
-Combined |
954 | 890 | 7% |
Average load size (in £) |
|||
-B2B |
£484 | £484 | - |
-B2C |
£384 | £393 | -2% |
- Overall |
£441 | £434 | +2% |
Travel Cash – Underlying transaction values decreased for three principal reasons:
Table 4 - Revenue
£000’s
International | Cards | Cash | Total FX | Banking | TOTAL | |
Payments | & Treasury | |||||
B2B |
||||||
2019 | 9,000 | 5,584 | - | 14,584 | 2,712 | 17,295 |
2018 | 3,905 | 3,217 | 118 | 7,241 | 2,306 | 9,546 |
% Change on year | 130% | 74% | - | 82% | 18% | 81% |
B2C | ||||||
2019 | 2,928 |
5,710 | 2,389 | 11,028 | 2,622 | 13,649 |
2018 | 4,484 | 6,780 | 1,959 | 13,223 | 3,323 | 16,546 |
% Change on year | -35% | -16% | 22% | -17% | -21% | -18% |
TOTALS | ||||||
2019 | 11,929 | 11,294 | 2,389 | 25,612 | 5,333 | 30,945 |
2018 | 8,390 | 9,997 | 2,077 | 20,464 | 5,629 | 26,092 |
% Change on year | 42% | 13% | 15% | 25% | -5% | 19% |
Table 5
£000’s |
International |
Cards |
Cash |
Banking |
|
TOTAL |
2019 |
|
|
|
|
|
|
Transaction costs*, issuance costs and bank charges |
811 |
3,961 |
1,036 |
1,388 |
|
7,196 |
Direct marketing, affiliate commissions |
1,053 |
318 |
- |
17 |
|
1,388 |
Sales commissions |
1,674 |
113 |
7 |
- |
|
1,794 |
|
3,538 |
4,392 |
1,043 |
1,405 |
|
10,378 |
*including chargebacks and compensation payments. |
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 |
|
|
|
|
|
|
Transaction costs*, issuance costs and bank charges |
747 |
3,495 |
857 |
1,336 |
|
6,435 |
Direct marketing, affiliate commissions |
333 |
484 |
- |
28 |
|
845 |
Sales commissions |
1,200 |
71 |
- |
- |
|
1,271 |
|
2,280 |
4,050 |
857 |
1,364 |
|
8,551 |
Table 6
£000’s
|
International |
Cards |
Cash |
Banking |
|
TOTAL |
2019 |
|
|
|
|
|
|
Gross profit |
8,391 |
6,902 |
1,346 |
3,928 |
|
20,567 |
GP margin % |
42% |
61% |
56% |
74% |
|
66% |
|
|
|
|
|
|
|
2018 |
|
|
|
|
|
|
Gross profits |
6,110 |
5,947 |
1,220 |
4,265 |
|
17,541 |
GP margin % |
73% |
60% |
59% |
76% |
|
67% |
Table 7
£000’s |
2019 |
|
2018 |
Marketing |
2,037 |
|
2,768 |
Rebranding |
2,053 |
|
308 |
Total |
4,090 |
|
3,076 |
Less: treated as Exceptional item |
(2,053) |
|
(308) |
Net marketing cost |
2,037 |
|
2,768 |
The split of marketing by business unit* was as follows:
Cards and travel cash |
1,389 |
|
1,791 |
Banking |
571 |
|
946 |
Corporate and central |
76 |
|
31 |
|
2,037 |
|
2,768 |
Table 8
£000’s
|
|
Less |
Less |
Sub-total |
Less |
|
2019
|
Gross |
Separately reported items |
IFRS 16 transition |
|
Expenditure Capitalised |
Net |
Staff costs |
18,497 |
(895) |
- |
17,602 |
(7,801) |
9,801 |
Property, insurance & office expenses |
2,372 |
(151) |
(1,152) |
1,069 |
(204) |
865 |
Professional fees |
1,283 |
(324) |
- |
959 |
- |
959 |
IT & telephone |
1,180 |
- |
- |
1,180 |
(302) |
878 |
Travel and similar |
451 |
|
- |
451 |
- |
451 |
TOTALS |
23,783 |
(1,370) |
(1,152) |
21,261 |
(8,307) |
12,954 |
|
Cost in £’000s |
Product line |
Retail card web and mobile applications |
1,172 |
Equals Go (retail card) |
Serve-self payments application |
863 |
Equals Pay (international payments) |
Web and mobile platform for corporate expenses |
724 |
Equals Spend (corporate expense platform) |
Technical infrastructure |
643 |
All products |
Reconciliation and accounting |
597 |
Equals Pay (international payments) |
2019 |
Rebranding |
Reorganisations |
Product development |
Litigation & other |
Total |
|
People |
530 |
337 |
- |
28 |
895 |
|
Property |
- |
106 |
- |
- |
106 |
|
Professional fees |
96 |
136 |
- |
92 |
324 |
|
IT & telephone |
- |
- |
- |
- |
- |
|
Other costs |
46 |
- |
- |
- |
46 |
|
|
672 |
579 |
- |
120 |
1,371 |
|
Marketing |
2,053 |
- |
- |
- |
2,053 |
|
Total, separately reported items |
2,725 |
579 |
- |
120 |
3,423 |
|
2018
|
|
|
|
|
|
|
People |
282 |
1,169 |
1,405 |
- |
2,856 |
|
Property |
- |
76 |
- |
- |
76 |
|
Professional fees |
- |
217 |
- |
- |
217 |
|
IT & telephone |
- |
37 |
- |
- |
37 |
|
Other costs |
- |
49 |
- |
- |
49 |
|
|
282 |
1,548 |
1,405 |
- |
3,235 |
|
Marketing |
308 |
- |
- |
- |
308 |
|
Total, separately reported items |
590 |
1,548 |
1,405 |
- |
3,543 |
|
31 December 2019 |
|
31 December 2018 |
|||
In £000’s |
Notes |
On Balance sheet |
Off balance sheet (memo only) |
|
On Balance sheet |
Off Balance sheet (memo only) |
Non-current assets* |
|
|
|
|
|
|
Net book value b.fwd |
|
28,050 |
|
|
17,787 |
|
Additions – tangible fixed assets |
|
1,452 |
|
|
671 |
|
Additions – internally capitalised software |
|
8,307 |
|
|
5,251 |
|
Additions – other purchases of intangibles |
|
806 |
|
|
508 |
|
Additions – through business combinations |
|
4,801 |
|
|
5,352 |
|
Depreciation in the year |
|
(430) |
|
|
(200) |
|
Amortisation in the year |
|
(2,831) |
|
|
(1,319) |
|
Impairments in the year |
|
(4,859) |
|
|
- |
|
Net book value c.fwd |
|
35,296 |
|
|
28,050 |
|
|
|
|
|
|
|
|
Cash resources |
|
|
|
|
|
|
Cash at bank and in hand – free funds Cash at bank and in hand – regulatory deposits |
|
10,913 352 |
- 52,441 |
|
7,509 351 |
- 48,026 |
|
|
11,265 |
52,441 |
|
7,860 |
48,026 |
Regulatory deposits with liquidity providers |
|
3,717 |
- |
|
1,457 |
- |
Sub-total, working liquid funds |
B5, Table 13 |
14,982 |
52,441 |
|
9,317 |
48,026 |
Other current assets and liabilities* Card stock and other inventories Trade and other debtors Accrued income Net derivative financial assets Accrued R&D credit Trade payables, other payables and accruals Retention and deferred consideration on acquisitions Customer balances |
B6 B7 B8 B9 B10 B11
C3 |
264 3,374 1,723 372 2,535 (5,667)
(1,211)
(1,071) |
- - - - - -
-
(52,441) |
|
287 1,961 1,332 603 1,261 (5,543)
- |
- - - - - -
(48,026) |
|
|
319 |
(52,441) |
|
(99) |
(48,026) |
|
|
|
|
|
|
|
IFRS 16 Leases net balance |
|
(294) |
- |
|
- |
- |
Net deferred tax (liability)/asset * |
|
(788) |
- |
|
995 |
- |
|
|
|
|
|
|
|
Shareholder funds |
|
49,517 |
- |
|
38,266 |
- |
£ 000’s |
|
2019 |
|
2018 |
Shareholder funds at 1 January |
|
38,266 |
|
35,045 |
Add: Capital raised during the year for cash |
|
15,430 |
|
- |
Add: Shares issued in pursuance of acquisitions |
|
1,318 |
|
- |
Add: Shares issued against deferred consideration |
|
130 |
|
- |
Less: Result for the year (table 1a) |
|
(5,372) |
|
2,618 |
Non-cash, share based payments through reserves |
|
(403) |
|
603 |
Non-controlling interest |
|
118 |
|
- |
Other movements in reserves |
|
30 |
|
- |
Shareholder funds at 31 December |
|
49,517 |
|
38,266 |
|
Cost in £’000s |
Product line |
Retail card web and mobile applications |
1,172 |
Equals Go (retail card) |
Serve-self payments application |
863 |
Equals Pay (international payments) |
Web and mobile platform for corporate expenses |
724 |
Equals Spend (corporate expense platform) |
Technical infrastructure |
643 |
All products |
Reconciliation and accounting |
597 |
Equals Pay (international payments) |
Date |
Number of shares |
Event |
Gross proceeds (£) |
|
Net cash received (£) |
|
1 January 2019 |
155,368,259
|
|
|
|
|
|
27 March 2019 |
7,500,000 |
Shares issued to Crystal Amber through warrant exercise following their share subscription agreement in 2016. Warrant price, 27.0 pence per share
|
2,025,000 |
|
2,025,000 |
|
16 May 2019 |
1,149,424 |
Deferred consideration of Q Money Limited issued at 43.5 pence per share
|
499,999 |
|
- |
|
29 May 2019 |
300,000 |
Share options exercised at 36.44 pence
|
109,320 |
|
105,120 |
|
9 August 2019 |
851,063 |
Subscription from founder of Hermex at 117.5 pence per share
|
1,000,000 |
|
- |
|
9 August 2019 |
33,333 |
Share options exercised at 29.75 pence
|
9,917 |
|
9,917 |
|
20 August 2019 |
12,727,000 |
Share placing at 110.0 pence before expenses of £825,305
|
13,999,700 |
|
13,174,395 |
|
4 September 2019 |
246,173 |
Shares issued on open offer under Excess Application facility at 110.0 pence per share before expenses of £39,950
|
270,790 |
|
230,840 |
|
22 November 2019 |
377,666 |
Issue of shares following acquisition of Casco at 84.4 pence per share
|
318,750 |
|
318,750 |
|
11December 2019 |
50,000 |
Share options exercised at 29.75 pence per share
|
14,875 |
|
14,875 |
|
31 December 2019 |
178,602,918 |
|
18,248,350 |
|
15,878,897 |
|
|
|
|
|
|
|
|
1 January 2019 |
155,3685,259 |
|
|
|
|
|
|
22,851,326 |
Cash raised from equity issues |
|
|
15,748,985 |
|
|
383,333 |
Cash raised from share option exercise |
|
|
129,912 |
|
31 December 2019 |
178,602,918 |
|
|
|
15,878,897 |
|
£ 000’s |
2019 |
2019 |
|
2018 |
2018 |
Adjusted EBITDA (Table 1) |
|
9,055 |
|
|
7,513 |
Less: R&D rebate accrued for current year |
(2,535) |
|
|
(1,261) |
|
Less: IFRS 16 impact |
(1,152) |
|
|
- |
|
Less: Exceptional items (Table 9) |
(3,903) |
|
|
(3,840) |
|
Add / (Less): Working capital absorption and similar |
2,211 |
|
|
933 |
|
|
|
(5,379) |
|
|
(4,168) |
Less: Internally capitalised software (table 8) |
(8,307) |
|
|
(5,251) |
|
Less: Purchase of other intangible assets |
(806) |
|
|
(508) |
|
|
|
(9,113) |
|
|
(5,759) |
Less: Purchase of property, plant and equipment |
|
(1,452) |
|
|
(671) |
|
|
(6,889) |
|
|
(3,085) |
Add: Cash raised from equity issues (Note C1) |
15,749 |
|
|
- |
|
Add: Cash raised from share options (Note C2) |
130 |
|
|
- |
|
|
|
15,879 |
|
|
- |
Less: Cash consideration for acquisitions net of cash acquired (Note C3) |
|
(3,325) |
|
|
(6,564) |
|
|
|
|
|
|
NET CASH FLOWS |
|
5,665 |
|
|
(9,649) |
|
|
|
|
|
|
Balance at 1st January |
|
9,317 |
|
|
*18,966 |
|
|
|
|
|
|
Balances at 31 December |
|
14,982 |
|
|
9,317 |
|
|
|
|
|
|
Comprising: |
|
|
|
|
|
|
|
|
|
|
|
Cash at bank and in hand including regulatory deposits |
|
11,265 |
|
|
7,860 |
Balances with liquidity providers |
|
3,717 |
|
|
1,457 |
|
|
14,982 |
|
|
9,317 |
|
|
|
|
|
|
Shares in issue |
|
178,602,918 |
|
|
155,368,259 |
|
|
|
|
|
|
Amount per share |
|
8.4 pence |
|
|
6.0 pence |
*The composition of balances at 31 December 2017 was:
Cash at bank and in hand including regulatory deposits |
|
|
|
|
17,803 |
Balances with liquidity providers |
|
|
|
|
1,163 |
|
|
|
|
|
18,966 |
2019 |
|
2018 |
2018 |
|||||||||
Note |
£ |
|
£ |
£ |
|
|||||||
|
|
|
||||||||||
Gross value of currency transactions sold |
2,117,459,669 |
|
1,783,710,215 |
1,783,710,215 |
|
|||||||
|
|
|
||||||||||
Revenue on currency transactions |
25,611,521 |
|
20,463,645 |
20,463,645 |
|
|||||||
Banking revenue |
|
5,333,203 |
|
5,628,747 |
|
5,628,747 |
|
|||||
Revenue |
2 |
30,944,724 |
|
26,092,392 |
|
26,092,392 |
|
|||||
Direct costs |
2 |
(10,378,265) |
|
(8,551,315) |
(5,605,691) |
|
||||||
Gross profit |
2 |
20,566,459 |
|
17,541,077 |
20,486,431 |
|
||||||
|
|
|
||||||||||
Administrative expenses |
(20,123,517) |
|
(14,156,777) |
(16,790,975) |
|
|||||||
Amortisation charge |
|
(2,830,587) |
|
(1,318,649) |
|
(1,318,649) |
|
|||||
Impairment charge |
|
(4,858,898) |
|
- |
|
- |
|
|||||
Acquisition expenses |
|
(478,476) |
|
(297,484) |
|
(297,484) |
|
|||||
Total operating expenses |
|
(28,291,478) |
|
(15,772,910) |
|
(18,407,108) |
|
|||||
|
|
|
|
|
|
|
|
|||||
Operating (loss) / profit |
|
(7,725,019) |
|
1,768,167 |
|
2,079,323 |
|
|||||
|
|
|
|
|
|
|
|
|||||
Finance costs |
|
(233,564) |
|
- |
|
- |
|
|||||
(Loss) / profit before tax |
3 |
(7,958,583) |
|
1,768,167 |
2,079,323 |
|
||||||
|
|
|
|
|
|
|
|
|||||
Tax credit |
5 |
(2,586,885) |
|
849,499 |
538,343 |
|
||||||
(Loss) / profit and total comprehensive (expense) / income for the year |
(5,371,698) |
|
2,617,666 |
2,617,666 |
|
|||||||
Loss is attributable to: |
|
|
|
|
|
|
|
|||||
Owners of Equals Group PLC |
|
(5,342,074) |
|
2,617,666 |
|
2,617,666 |
|
|||||
Non-controlling interest |
|
(29,624) |
|
- |
|
- |
|
|||||
(Loss) / Earnings per share |
4 |
|
|
|
|
|||||||
Basic |
(3.20) |
|
1.68 |
1.68 |
|
|||||||
Diluted |
(3.12) |
|
1.64 |
1.64 |
|
All income and expenses arise from continuing operations. There are no differences between the profit for the year and total comprehensive income for the year, hence no Statement of Other Comprehensive Income is presented
All income and expenses arise from continuing operations. There are no differences between the profit for the year and total comprehensive income for the year, hence no Statement of Other Comprehensive Income is presented.
CONSOLIDATED AND COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER
Group |
Company |
|||||||
2019 |
2018 |
2019 |
2018 |
|||||
Note |
£ |
£ |
£ |
£ |
||||
ASSETS |
||||||||
Non-current assets |
|
|||||||
Property, plant and equipment |
1,972,818 |
941,826 |
- |
- |
||||
Right of use assets |
6 |
6,948,876 |
|
- |
|
- |
|
- |
Intangible assets and goodwill |
|
33,324,137 |
|
27,107,873 |
|
- |
|
- |
Deferred tax assets |
|
2,438,859 |
|
2,895,642 |
|
238,369 |
|
- |
Investments |
- |
- |
38,892,060 |
38,725,451 |
||||
44,684,690 |
30,945,341 |
39,130,429 |
38,725,451 |
|||||
Current assets |
|
|||||||
Inventories |
263,971 |
286,713 |
- |
- |
||||
Trade and other receivables |
11,347,749 |
7,150,750 |
20,138,017 |
4,907,704 |
||||
Derivative financial assets |
4,560,780 |
1,181,892 |
- |
- |
||||
Cash and cash equivalents |
11,265,266 |
7,860,368 |
- |
- |
||||
27,437,766 |
16,479,723 |
20,138,017 |
4,907,704 |
|||||
TOTAL ASSETS |
72,122,456 |
47,425,064 |
59,268,446 |
43,633,155 |
||||
EQUITY AND LIABILITIES |
||||||||
Equity attributable to equity holders |
|
|||||||
Share capital |
1,786,029 |
1,553,682 |
1,786,029 |
1,553,682 |
||||
Share premium |
53,003,077 |
35,858,770 |
53,003,077 |
35,858,770 |
||||
Share based payment reserve |
1,345,234 |
1,748,105 |
957,757 |
835,148 |
||||
Merger reserve |
8,395,521 |
8,395,521 |
2,979,438 |
2,979,438 |
||||
Contingent consideration reserve |
|
207,100 |
|
543,172 |
|
207,100 |
|
543,172 |
Retained (deficit) / earnings |
(15,338,881) |
(9,832,880) |
(1,624,991) |
240,954 |
||||
Equity attributable to owners of Equals Group PLC |
|
49,398,080 |
|
38,266,370 |
|
57,308,410 |
|
42,011,164 |
Non-controlling interest |
|
118,826 |
|
- |
|
- |
|
- |
|
49,516,906 |
38,266,370 |
57,308,410 |
42,011,164 |
||||
Non-current liabilities |
|
|||||||
Lease liabilities |
6 |
6,431,578 |
|
- |
|
- |
|
- |
Deferred tax liabilities |
3,226,586 |
|
1,900,607 |
|
- |
|
- |
|
9,658,164 |
1,900,607 |
- |
- |
|||||
Current liabilities |
|
|||||||
Trade and other payables |
7,947,364 |
6,679,131 |
1,960,036 |
1,621,991 |
||||
Lease liabilities |
6 |
811,628 |
|
- |
|
- |
|
- |
Derivative financial liabilities |
4,188,394 |
|
578,956 |
- |
|
- |
||
12,947,386 |
7,258,087 |
1,960,036 |
1,621,991 |
|||||
TOTAL EQUITY AND LIABILITIES |
72,122,456 |
47,425,064 |
59,268,446 |
43,633,155 |
CONSOLIDATED AND COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER
Group |
Share capital |
Share premium |
Share based payment |
Retained (deficit) / earnings |
Merger reserve |
|
Contingent consideration reserve |
|
Total attributable to owners of Equals Group PLC |
|
Non-controlling interest |
|
Total |
||||
£ |
£ |
£ |
£ |
£ |
|
£ |
|
£ |
|
£ |
|
£ |
|||||
|
Attributable to the owners of Equals Group PLC |
|
|
|
|
||||||||||||
At 1 January 2018 |
1,553,682 |
|
35,858,770 |
|
1,144,832 |
|
(12,450,546) |
|
8,395,521 |
|
543,172 |
|
35,045,431 |
|
- |
|
35,045,431 |
|
|
|
|
|
|
|
|||||||||||
Profit for the year and total comprehensive income
|
- |
- |
- |
2,617,666 |
- |
|
- |
|
2,617,666 |
|
- |
|
2,617,666 |
||||
Share based payment charge |
- |
|
- |
|
603,273 |
|
- |
|
- |
|
- |
|
603,273 |
|
- |
|
603,273 |
At 31 December 2018 |
1,553,682 |
35,858,770 |
1,748,105 |
(9,832,880) |
8,395,521 |
|
543,172 |
|
38,266,370 |
|
- |
|
38,266,370 |
||||
|
|
|
|
|
|
|
|||||||||||
Acquisition of subsidiary with non-controlling interest |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
148,450 |
|
148,450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss for the year and total comprehensive income |
- |
|
- |
|
- |
|
(5,342,074) |
|
- |
|
- |
|
(5,342,074) |
|
(29,624) |
|
(5,371,698) |
Share based payment charge |
- |
|
- |
|
122,609 |
|
- |
|
- |
|
- |
|
122,609 |
|
- |
|
122,609 |
Movement in deferred tax on share-based payment charge |
- |
|
- |
|
(525,480) |
|
- |
|
- |
|
- |
|
(525,480) |
|
|
|
|
Share issues in year |
232,347 |
|
17,144,307 |
|
- |
|
(163,927) |
|
- |
|
(336,072) |
|
16,876,655 |
|
- |
|
16,876,655 |
Capital reserve movement |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
At 31 December 2019 |
1,786,029 |
|
53,003,077 |
|
1,345,234 |
|
(15,338,881) |
|
8,395,521 |
|
207,100 |
|
49,398,080
|
|
118,826 |
|
49,515,906 |
CONSOLIDATED AND COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER
Company |
Share capital |
Share premium |
Share based payment |
Retained (deficit) / earnings |
Merger reserve |
|
Contingent consideration reserve |
|
Total attributable to owners of Equals Group PLC |
|
Non-controlling interest |
|
Total |
||||
£ |
£ |
£ |
£ |
£ |
|
£ |
|
£ |
|
£ |
|
£ |
|||||
|
|
|
|
|
|
||||||||||||
At 1 January 2018 |
1,553,682 |
|
35,858,770 |
|
781,383 |
|
(1,123,092) |
|
2,979,438 |
|
543,172 |
|
40,593,353 |
|
- |
|
40,593,353 |
|
|
|
|
|
|
|
|||||||||||
Profit for the year and total comprehensive income
|
- |
- |
- |
1,364,046 |
- |
|
- |
|
1,364,046 |
|
- |
|
1,364,046 |
||||
Share based payment charge (note 22) |
- |
|
- |
|
53,765 |
|
- |
|
- |
|
- |
|
53,765 |
|
- |
|
53,765 |
At 31 December 2018 |
1,553,682 |
35,858,770 |
835,148 |
240,954 |
2,979,438 |
|
543,172 |
|
42,011,164 |
|
- |
|
42,011,164 |
||||
|
|
|
|
|
|
|
|||||||||||
Loss for the year and total comprehensive income |
- |
|
- |
|
- |
|
(1,702,018) |
|
- |
|
- |
|
(1,702,018) |
|
- |
|
(1,702,018) |
Share issues in year |
232,347 |
|
17,144,307 |
|
- |
|
(163,927) |
|
- |
|
(336,072) |
|
16,876,655 |
|
- |
|
16,876,655 |
Share based payment charge (note 22) |
- |
|
- |
|
122,609 |
|
- |
|
- |
|
- |
|
122,609 |
|
- |
|
122,609 |
At 31 December 2019 |
1,786,029 |
|
53,003,077 |
|
957,757 |
|
(1,624,991) |
|
2,979,438 |
|
207,100 |
|
57,308,410
|
|
- |
|
57,308,410 |
Group
2019 |
2018 |
|||
£ |
£ |
|||
(Loss) / profit for the year |
(5,371,698) |
2,617,666 |
||
|
||||
Cash flows from operating activities |
|
|||
Adjustments for: |
|
|||
Interest on finance lease |
|
233,564 |
|
- |
Depreciation |
1,347,872 |
200,123 |
||
Amortisation |
|
2,830,587 |
|
1,318,649 |
Impairment |
|
4,858,898 |
|
- |
Share based payment charge |
122,609 |
53,765 |
||
(Increase) / decrease in deferred tax asset on share-based payment |
|
(525,480) |
|
549,508 |
Increase in trade and other receivables |
(4,203,756) |
(1,551,213) |
||
Increase in derivative financial assets |
(3,378,888) |
(878,117) |
||
Decrease / (increase) in deferred tax asset |
|
456,784 |
|
(2,383,730) |
Increase in trade and other payables |
1,443,563 |
1,899,118 |
||
Increase in deferred tax liabilities |
|
1,325,978 |
|
878,369 |
Increase in derivative financial liabilities |
3,609,438 |
433,751 |
||
Decrease / (increase) in inventories |
22,742 |
(86,966) |
||
Net cash inflow from operating activities |
2,773,213 |
3,050,923 |
||
|
||||
Cash flows from investing activities |
|
|||
Acquisition of property, plant and equipment |
(1,460,870) |
(670,827) |
||
Acquisition of intangibles |
|
(11,679,597) |
|
(5,758,957) |
Acquisition of subsidiary, net of cash acquired |
|
(2,226,153) |
|
(6,563,834) |
Net cash used in investing activities |
(15,366,620) |
(12,993,618) |
||
|
||||
Cash flows from financing activities |
|
|||
Principal elements of lease payments |
|
(643,786) |
|
- |
Interest paid on finance lease |
|
(233,564) |
|
- |
Proceeds from issuance of ordinary shares |
17,748,353 |
- |
||
Costs directly attributable to share issuance |
|
(871,698) |
|
- |
Net cash from financing activities |
15,999,305 |
- |
||
|
||||
Net increase / (decrease) in cash and cash equivalents |
3,404,898 |
(9,942,695) |
||
Cash and cash equivalents at the beginning of the year |
7,860,368 |
17,803,063 |
||
Cash and cash equivalents at end of the year |
11,265,266 |
7,860,368 |
COMPANY STATEMENT OF CASH FLOWS
|
At 31 December the Company held no bank accounts.
BROWSE