Dozens Savings PLC - Final Results
RNS Number : 5243M
Dozens Savings PLC
21 January 2021
 

Dozens Savings Plc

(''DS'' or "the Company'')

 

FINAL RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2020

 

The directors present the strategic report for the year ended 30 September 2020.

 

Business Review

The Company was formed to issue debt securities (namely listed bonds paying 5% fixed interest over a 12 month period) to UK retail investors. The ultimate aim of the Company and its Parent, Project Imagine Limited, is to encourage savers to become investors by providing an investment product where capital is not at risk. The issued bonds of the company have been admitted to Aquis Stock Exchange and the company has a total facility for issuing £7 million of bonds, each bond being worth £100, in total over a rolling twelve-month period.

 

The Company successfully issued 16,412 bonds worth £1,641,200 in total during the 12 months ending September 2020. The bonds are marketed by its parent company, Project Imagine Limited and a secondary market is being made by Thomas Grant and Company Limited.

 

The Company relies on the funding of its Parent, Project Imagine Limited for the continuation of frequent bond issuances in order to encourage savers to become investors.

 

Principal risks and uncertainties

Business model - the risk that the Company's business model is not sustainable due to poor execution of the Company's strategic plan or inability to adapt to changing market conditions.

 

Financial - any risks that could impact the Company's financial profile, in particular cash flow risk rising from failure to maintain an adequate working capital position.

 

Compliance - the risk of not meeting relevant legislations, rules and regulations which could cause customers harm, financial losses or reputational damage to the Company.

 

Operational - the risk that failures of people, processes or internal and third-party systems could lead to a service disruption or financial losses.

 

Britain's exit from the European Union ('Brexit') - the risk that passporting rights and the ability to transact with partners across the EU become impaired. While it is hard to quantify this risk at present the Company has communicated with consultants and partners to ensure any required steps are taken to mitigate any risk. Because the Company services only UK consumers, Brexit is not expected to impact its ability to service its customers.

 

COVID-19 - the risk that critical partners' businesses will cease to be viable impacting continuity of third party services on which the application depends. Also the risk that prospective B2B customers will delay implementation of new core-banking platforms delaying revenue.

 

 

Financial Review

Sustainable financial growth is key to delivering the Group's mission in a responsible way which prioritises its customers interests. In FY20 the Group raised £3.8m (and a further £2m post year-end) across a range of investors to support growth while maintaining its regulatory obligations.

 

Reflecting a full 12-month period, the Company's operating loss decreased slightly in FY20 to £182,894 (2019 - £189,090) as the Company successfully moved to fully remote working in the fallout of the Covid-19 pandemic.

 

At the end of the period, the Company had gross assets of £1,692,078 (2019 - £219,085), shareholder's funds of £28,016 (2019 - £110,910) and total cash balances of £1,466,688 (2019 - £194,168).

 

 

Key performance indicators

Average bond balance held by subscribers

Since September 2019, average bond balance held by customers has increased from £1,241 to £3,627.

 

Rate of subscription to monthly bond issuances

Since September 2019, monthly issuances have been oversubscribed by 3.5x on average.

 

 

 

Other performance indicators

The Company's business model is not reliant on any natural resources, nor does management anticipate climate change having a direct impact on the Company's operations.

 

The Company performs an important role in society by incentivising users to save. As long as the Company continues to operate in an ethical and responsible fashion, it expects to continue fulfilling this important role while helping other businesses to improve consumers' lives through innovative financial technology.

 

Future Outlook

Since the reporting date the company has issued a further 10,353 bonds of £100 each for an aggregate total of £1,035,300.

 

The Directors believe that the Company, along with that of Project Imagine Limited, has a strong story to tell in relation to its mission and will continue to raise interest in its bonds with marketing campaigns, word of mouth and press coverage.

 

The Company's KPIs demonstrate that this is the case as demand for the Company's issued bonds continues to outstrip supply. Meanwhile the number of unique savers accessing the product is increasing, demonstrating the increasing reach and profile of the Company.

 

 

On behalf of the board

 

 

A Chakravarty

Director

19 January 2021

 

 

Statement of Comprehensive Income for the year ended 30 September 2020

 

 

 

 

 

 

 

 

 

 

 

Year

 

Period

 

 

 

ended

 

ended

 

 

 

30-Sep

 

30-Sep

 

 

 

2020

 

2019

 

Notes

 

£

 

£

 

 

 

 

 

 

Administrative expenses

 

 

(124,722)

 

(187,032)

 

 

 

 

 

 

Interest receivable and similar income

 

 

            1,077

 

          101

Interest payable and similar expenses

 

 

(59,249)

 

(2,159)

 

 

 

 

 

 

Loss before taxation

 

 

(182,894)

 

(189,090)

 

 

 

 

 

 

Tax on loss

 

 

 -

 

 -

 

 

 

 

Loss for the financial year

 

 

(182,894)

 

(189,090)

 

 

 

 

 

 

Other comprehensive income

 

 

 -

 

 -

 

 

 

Total comprehensive income for the year

 

 

(182,894)

 

(189,090)

 

 

 

 

 

Earnings per share (expressed in pence per share)

 

 

 

 

 

 

 

 

 

 

 

From continuing operations:

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted loss per share

2

 

(0.60p)

 

(0.89p)

 

 

 

 

 

 

Statement of financial position as at 30 September 2020

 

2020

 

2019

 

 

 

£

£

£

£

 

 

Current assets

 

Debtors

 

225,390

 

24,917

 

Cash at bank and in hand

 

1,466,688

 

194,168

 

 

 

 

 

 

 

 

 

1,692,078

 

219,085

 

Creditors: amounts falling due within one year

 

 

(1,664,062)

 

(108,175)

 

 

 

 

 

 

 

 

Net current assets

28,016

 

110,910

 

 

 

 

 

 

 

 

Capital and reserves

 

Called up share capital

 

 

400,000

 

300,000

 

Profit and loss reserves

 

 

(371,984)

 

(189,090)

 

 

 

 

 

 

 

Total equity

 

28,016

 

110,910

 

 

 

 

 

 

 

                             

 

 

 

Cash Flow Statement for the year ended 30 September 2020

 

 

2020

 

2019

 

 

 

£

£

£

£

 

 

Cash flows from operating activities

 

 

Cash absorbed by operations

 

 

(319,508)

 

(196,933)

Interest paid

 

(59,249)

 

-

 

 

 

 

 

 

 

 

Net cash outflow from operating activities

 

(378,757)

 

(196,933)

 

Investing activities

 

Interest received

1,077

 

101

 

 

 

 

 

 

 

 

Net cash generated from investing activities

 

1,077

 

101

 

 

Financing activities

 

Proceeds from issue of shares

100,000

 

300,000

 

Issue of bonds

1,641,200

 

91,000

 

Repayment of bonds

 

(91,000)

 

-

 

 

 

 

 

 

 

 

Net cash generated from financing activities

 

1,650,200

 

391,000

 

 

 

 

 

 

 

 

Net increase in cash and cash equivalents

 

1,272,520

 

194,168

 

 

Cash and cash equivalents at beginning of year

 

194,168

 

-

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of year

 

1,466,688

 

194,168

 

 

 

 

 

 

 

                             

 

 

 

NOTES TO PRELIMINARY RESULTS FOR THE PERIOD ENDED 30 SEPTEMBER 2020

 

1.         The financial information set out above does not constitute statutory accounts for the purpose of Section 434 of the Companies Act 2006.   The financial information has been extracted from the statutory accounts of Dozens Savings Plc and is presented using the same accounting policies, which have not yet been filed with the Registrar of companies, but on which the auditors gave an unqualified report on 19 January 2021.

 

The preliminary announcement of the results for the period ended 30 September 2020 was approved by the board of directors on 21 January 2021.

 

2.             Loss per share

 

 

 

 

12 months to

9 months to

 

 

September 2020

September 2019

 

Loss per ordinary share:

 

Basic

(0.60p)

(0.89p)

 

 

Diluted

(0.60p)

(0.89p)

 

 

 

 

Earnings per share has been calculated on the net basis on the loss after tax of £182,894 (2019 - £189,090) using the weighted average number of ordinary shares in issue of 302,732 (2019 - 212,698).

 

 

 

There were no potentially dilutive shares at the period end.

 

               

 

- ends -

 

 

The directors of Dozens Savings plc accept responsibility for this announcement.

 

For further information, please contact:

 

Gemma Steel

Executive Director

Dozens Savings plc

Email: hello@dozens.com

Tel: 0808 164 1020

 

Alfred Henry Corporate Finance Limited

AQSE Corporate Advisor to Dozens Savings plc

Attn: Jon Isaacs

www.alfredhenry.com

Tel: +44 (0) 203 772 0021

 

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