Startup Giants Plc - Results for Year Ended 31st Dec. 2020
Announcement provided by
Startup Giants Plc · SUG03/06/2021 07:00
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION (EU) NO. 596/2014 OF THE EUROPEAN PARLIAMENT AND THE COUNCIL OF 16 APRIL 2014 ON MARKET ABUSE AS IT FORMS PART OF RETAINED EU LAW AS DEFINED IN THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 (THE "MARKET ABUSE REGULATION"). UPON PUBLICATION OF THIS ANNOUNCEMENT, THE INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
Startup Giants PLC
(“Startup Giants” or the “Company”; AQSE: SUG)
Directors’ Strategic Review; Results for the Year Ended 31st December 2020
The Directors of Startup Giants present below the Company’s audited financial statements for the year ended 31st December 2020. Shareholders should understand that the financial statements below are extracted from - but do not on their own constitute - Startup Giants’ statutory accounts. These are contained in the Annual Report and Financial Statements for the Year Ended 31 December 2020, which are expected to be posted to shareholders on or prior to 5th June 2021 and to be laid before shareholders for adoption and approval at the Annual General Meeting (“AGM”; please see below). For a fuller and more detailed explanation of the financial statements below, shareholders are therefore referred to the statutory accounts, including with the full Notes thereto. A downloadable copy of the Annual Report and Financial Statements will be obtainable from the Company’s website at https://startupgiants.com.
Financial Results
Owing to an increase in the Company’s business activities described below in identifying and supporting young businesses to locate and establish themselves in the
* The accounting policy applied in Startup Giants’ financial statements to the recognition of income is that certain deposits or pre-payments received by the Company during the year to 31st December 2020 are included in the reported revenue of £87,461 only to the extent that the services to which such deposits or pre-payments relate were delivered prior to the end of the financial year. The balance of such deposits or pre-payments will be reflected in the revenue reported during subsequent financial reporting periods as the support services to which they relate are delivered. A consequence of the application of this prudent revenue recognition policy is that the increase in administrative costs to equip the Company to deliver to endorsee businesses the services to which it is committed (most of which was incurred in the second half of the year) has been significantly greater than the growth in revenue during the same time-span. Over successive, future financial reporting periods, if the Company’s business progresses as the Directors presently anticipate, the effects of applying this policy to the recognition of income should diminish and the disparity evident in 2020 between the growth of costs and the growth of revenue should show convergence.
Significant Features of Financial 2020
In early May 2020, Startup Giants was approved by the Home Office as an Endorsing Body for the Innovator Route and Start-up Route visa categories, with its profile published on the Government website. This has enabled the Company to source investment opportunities globally, and directly to sponsor foreign entrepreneurs from non-EU countries to bring their innovation to the
Current Trading and Post-Balance Sheet Events
Trading during the current financial year hitherto has been in line with the Directors’ expectations at the beginning of the period. The Company has during the current year to date endorsed further overseas founders under the Innovator Route and Start-up Route described above and entered into support services agreements with a number of these endorsee businesses. Each such support agreement provides, additionally, for the Company, at its election, to invest at a future date in the endorsee’s business.
Post- Balance Sheet Developments
Startup Giants announced on 19th April 2021 the placing of 223,178 new ordinary shares of
Outlook
Looking ahead, the momentum for technology companies requiring investment at the seed stage should continue, with demand for the Company’s support model, which encompasses a delivery crew to support young start-ups with their technology and digital marketing strategies, showing signs of continuing to increase.
For reasons explained above in the “Financial Results” commentary the Directors believe, on the basis of satisfactory current trading to date, that the financial statements in respect of the current financial year likely to show a marked convergence between the Company’s revenues and its operating costs compared with the previous twelve months’ period.
Forthcoming Changes of Directorate
At the Annual General Meeting (“AGM”) discussed below, Virginia Filmer-Sankey will be retiring from the Board of Directors by rotation and shall not be offering herself for re-election for a further term.
In Virginia’s stead the Directors will propose the election of Steven Paul Tuson (46) as a Director of the Company. Steve, a
AGM
The Company’s AGM will be held at 11:00 a. m. BST on Tuesday 29th June 2021. Notice of the AGM giving full details of the location and the resolutions to be laid before shareholders will be included with the Annual Report, which will be posted to shareholders by 5th June 2021.
Conclusion
I wish to thank my Board colleagues and the shareholders for their support and I look forward to reporting on future developments as and when this is appropriate.
Jeb Buckler, Chairman and Chief Executive Officer
STARTUP GIANTS PLC
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2020
2020 | 2019 | |||||||||
Notes | £ | £ | ||||||||
Revenue | 2 | 87,461 | 45,256 | |||||||
Gross profit | 87,461 | 45,256 | ||||||||
Administrative expenses | (234,477) | (130,807) | ||||||||
Operating loss | 3 | (147,016) | (85,551) | |||||||
Finance costs | 6 | (1,083) | - | |||||||
Other gains and losses | 7 | (40,000) | - | |||||||
Loss before taxation | (188,099) | (85,551) | ||||||||
Income tax expense | - | - | ||||||||
Loss and total comprehensive income for the year | (188,099) | (85,551) | ||||||||
Earnings per share (in pence) | 8 | |||||||||
Basic | (18.62) | (8.47) | ||||||||
Diluted | (18.62) | (8.47) | ||||||||
Earnings per share from continuing operations (in pence) | ||||||||||
Basic | (18.62) | (8.47) | ||||||||
Diluted | (18.62) | (8.47) | ||||||||
The income statement has been prepared on the basis that all operations are continuing operations. | ||||||||||
STARTUP GIANTS PLC
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2020
2020 | 2019 | ||||||||||
Notes | £ | £ | |||||||||
Non-current assets | |||||||||||
Goodwill | 10 | 22,084 | 27,084 | ||||||||
Investments | - | 40,000 | |||||||||
22,084 | 67,084 | ||||||||||
Current assets | |||||||||||
Trade and other receivables | 11 | 16,064 | 50,624 | ||||||||
Current tax recoverable | 14,915 | - | |||||||||
Cash and cash equivalents | 675,958 | 641,989 | |||||||||
706,937 | 692,613 | ||||||||||
Current liabilities | |||||||||||
Trade and other payables | 14 | 241,350 | 124,971 | ||||||||
Current tax liabilities | 15,998 | - | |||||||||
Borrowings | 13 | 2,963 | - | ||||||||
260,311 | 124,971 | ||||||||||
Net current assets | 446,626 | 567,642 | |||||||||
Non-current liabilities | |||||||||||
Borrowings | 13 | 22,083 | - | ||||||||
Net assets | 446,627 | 634,726 | |||||||||
Equity | |||||||||||
Called up share capital | 15 | 140,510 | 140,510 | ||||||||
Share premium account | 16 | 769,790 | 769,790 | ||||||||
Retained earnings | (463,673) | (275,574) | |||||||||
Total equity | 446,627 | 634,726 | |||||||||
The financial statements were approved by the board of directors and authorised for issue on 29 May 2021 and are signed on its behalf by: | |||||||||||
V Filmer-Sankey | |||||||||||
Director | |||||||||||
Company Registration No. 09690364 | |||||||||||
STARTUP GIANTS PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2020
Share capital | Share premium account | Retained earnings | Total | |||||||||
£ | £ | £ | £ | |||||||||
Balance at 1 January 2019 | 140,510 | 769,790 | (190,023) | 720,277 | ||||||||
Year ended 31 December 2019: | ||||||||||||
Loss and total comprehensive income for the year | - | - | (85,551) | (85,551) | ||||||||
Balance at 31 December 2019 | 140,510 | 769,790 | (275,574) | 634,726 | ||||||||
Year ended 31 December 2020: | ||||||||||||
Loss and total comprehensive income for the year | - | - | (188,099) | (188,099) | ||||||||
Balance at 31 December 2020 | 140,510 | 769,790 | (463,673) | 446,627 | ||||||||
STARTUP GIANTS PLC
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2020
2020 | 2019 | ||||||||||||
Notes | £ | £ | £ | £ | |||||||||
Cash flows from operating activities | |||||||||||||
Cash generated from/(absorbed by) operations | 20 | 8,969 | (4,464) | ||||||||||
Interest paid | (1,083) | - | |||||||||||
Tax refunded/(paid) | 1,083 | - | |||||||||||
Net cash inflow/(outflow) from operating activities | 8,969 | (4,464) | |||||||||||
Financing activities | |||||||||||||
Proceeds of new bank loans | 25,000 | - | |||||||||||
Net cash generated from/(used in) financing activities | 25,000 | - | |||||||||||
Net increase/(decrease) in cash and cash equivalents | 33,969 | (4,464) | |||||||||||
Cash and cash equivalents at beginning of year | 641,989 | 646,453 | |||||||||||
Cash and cash equivalents at end of year | 675,958 | 641,989 | |||||||||||
This announcement has been made after due and careful enquiry and the Directors of Startup Giants PLC accept responsibility for its content.
A copy of the Annual Report and Financial Statements, from which the financial statements reproduced here are extracted, will be uploaded onto the Company’s website https://startupgiants.com immediately following the posting to shareholders.
REGULATORY ANNOUNCEMENT ENDS
Enquiries:
Startup Giants PLC
Jeb Buckler; jeb@startupgiants.com; +44 747 794 9933
Keith, Bayley, Rogers & Co. Limited
Graham Atthill-Beck; +44 7506 43 41 07; Graham.Atthill-Beck@kbrl.co.uk; blackpearladvisers@gmail.com
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