Startup Giants Plc - Interim Report; Change of Directorate

Startup Giants plc

(“Startup Giants” or the “Company”)

Interim Results for the six months’ period to 30 June 2019

Board Statement

Startup Giants plc is pleased to announce its unaudited interim results for the six months’ period from 1^st January 2019 to 30^th June 2019. The financial statements below have not been reviewed by the Company’s auditors.

Financial Results

Financial highlights for the period, extracted from the financial statements which follow, include: operational loss £(21,254) (2018, £(45,893)); loss per share (2.1) pence (2018, (4.5) pence) cash and cash equivalents £642,680 (2018, £665,033); shareholders’ funds £699,023 (2018, £725,189).

Review of Business During the Period

 During the period under review, the Company has held a number of events for both founders and investors, including another investor event at NEX Exchange in London, and has worked with its growing portfolio of founders looking for acceleration of their startup businesses.

The Company has forged new partnerships with investment groups that invest up to £150,000 into each of the Company’s shortlisted startups. As part of the first round, the Company also agrees an option that can be exercised after three years to buy up to 15% of equity in the startup.  Using these initial funds to complete its technology and reach a degree of early adoption, the Company will then take the startup through a private, follow-on SEIS co-investment round and a later SEED round via its investor syndicate.

This approach reduces the Company’s requirement for external funding as well as diminishing the risks to the Company from startups that might fail within their first three years. For those startups that do have successful follow-on pre-seed and seed rounds, the value of the Company’s options should be reflected in the audited accounts.

Current Trading

Current trading remains in line with the directors’ expectations at the beginning of the second half of the 2019 financial year.

Post- Balance Sheet Events

1)         Co-investment Terms Sheets in Place

The Company has received three signed term sheets for startups which now have investment commitments from third parties whom the Company has introduced, with the Company taking options as described above on each investment. A fourth startup has an offer of investment and we await a signed term sheet. The Company has four additional, shortlisted startups which it is in the process of introducing to investors.

2)         Change in Board of Directors

Effective today (27^th September 2019), Dr. John Campbell Robertson will be retiring as a director of the Company. The Company expects to replace Dr. Robertson in due course; during the intervening period, Frederic Betito (non-executive) will become the senior non-executive director. I would like to thank Dr. Robertson for his involvement through the transition of Startup Giants from being a private to a public company and subsequently, and to wish him all the best in future.  

Outlook

With the co-investment model starting to gain traction for first round funding, Startup Giants expects in the next year to increase the number of startups being funded to an average of two per month.

Conclusion

The directors would like to thank shareholders for their support during the period under review and look forward to informing them of developments at Startup Giants during the remainder of the current financial period and into the future.

Jeb Buckler,

Chief Executive Officer,

Startup Giants plc,

27^th September 2019

Statement of Comprehensive Income

Six months ended 30 June 2019

(Financial data for the comparative period to 31 July 2018 as previously reported prior to the change of accounting year end to 31 December).

                          Six months ended 30 June Six months ended 31 July 2018
                                              2019

                                               GBP                           GBP

Turnover                                    45,245                             -

Administrative expenses                   (66,499)                      (45,893)

Operating loss                            (21,254)                      (45,893)

Taxation                                         -                             -

Loss for the period                       (21,254)                      (45,893)

Earnings per share:

Basic and Diluted (pence)                   (2.1)p                        (4.5)p

Startup Giants plc

Statement of Financial Position

As at 30 June 2019

                            30 June 2019 31 July 2018

                                     GBP          GBP

Non-current assets:

Goodwill                          29,584       34,167

Investments                       40,000       40,000

                                  69,584       74,167

Current assets:

Trade and other receivables       70,982       68,636

Cash and cash equivalents        642,680      665,033

                                 713,662      733,669

Total assets                     783,246      807,836

Current liabilities:

Trade and other payables          84,223       82,647

Net current assets               629,439      651,022

Total liabilities                 84,223       82,647

Net assets                       699,023      725,189

Equity:

Called up share capital          140,510      140,510

Share premium account            769,790      769,790

Retained earnings              (211,277)    (185,111)

Total equity                     699,023      725,189

Startup Giants plc

Statement of Cash Flows

Six months ended 30 June 2019

                             Six months ended 30 June Six months ended 31 July
                                                 2018                     2018

                                                  GBP                      GBP

Loss for the year after tax                  (21,254)                 (45,893)

Adjustments for:

Amortisation of intangible                      2,500                    2,500
assets

Movement in trade and other                     5,768                 (14,196)
receivables

Movement in trade and other                     9,213                   36,420
payables

Cash absorbed by operations                   (3,773)                 (21,169)

Investing activities:

Purchase of investments                             -                        -

Financing activities:

Proceeds from issue of                              -                        -
shares

(Decrease)/increase in cash                   (3,773)                 (21,169)
and cash equivalents

Cash and cash equivalents at                  646,453                  686,202
beginning of period

Cash and cash equivalents at                  642,680                  665,033
end of period

The financial information set out above has not been reviewed or audited by the Company’s auditors.

The financial information set out above has been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the European Union.

This announcement has been made after due and careful inquiry and the directors of Startup Giants plc accept responsibility for its content.

Enquiries:

Startup Giants plc

Cherry Martin; cherry@startupgiants.com  +44 20 7 157 9764

Keith, Bayley, Rogers & Co Limited

Graham Atthill-Beck +44 20 7464 4091; +44 750 643 4107; +097 50 856 9408;

blackpearladvisers@gmail.com; Graham.Atthill-Beck@kbrl.co.uk

Brinsley Holman: +44 20 7464 4098: Brinsley-Holman@kbrl.co.uk