Tap Global Group Plc - Interim Results & Trading Update

22 March 2023

Tap Global Group Plc

(“Tap” or the “Company”)

Interim Results

&

Trading Update

Tap reports significant growth in user numbers and revenue following successful fundraise and listing on AQSE

Tap Global Group Plc (AQSE: TAP), the regulated crypto app bridging the gap between traditional finance and blockchain technology, presents its unaudited half-year results for the six-month period ended 31 December 2022. Given that the reverse takeover acquisition (“RTO”) of Tap Global Limited (“TGL”) by Quetzal Capital Plc (“Quetzal”) did not complete until 10 January 2023, the Business Review contained in this announcement extends only to the activities of Quetzal prior to the RTO.

Accordingly, Tap is pleased to provide an update on its performance since the RTO in the below trading update with the Company benefitting from a material increase in registered users and revenue ahead of internal forecasts.

Tap Trading Update – Post Period End

Since listing, Tap has seen material increases in both registered users and revenue delivered through the Company’s platform. Registered users as at 28 February 2023 stood at just under 140,000 compared with 100,000 announced at the end of September 2022.

Revenue in each of January and February 2023 was over three times that delivered in December 2022, with this positive momentum carried through into March. The Company intends to commission analyst research in the near future which will set forward looking revenue targets.

On 24 January 2023, the Company announced a contract-win with Bitfinex, one of the world’s leading crypto exchanges. The contract involves the provision of ‘Cards as a Service’ (“CaaS”) to users of Bitfinex who can opt in for a Mastercard managed by Tap. Tap will receive a per card/per month revenue stream from this contract, which forms part of the Company’s growing business-to-business offering. Tap is actively seeking further clients for its CaaS solution to expand this potentially significant revenue stream. 

The Company is focused on the organic growth of its userbase coupled with geographical expansion to territories and jurisdictions beyond Europe.

John Taylor, Chairman of Tap Global:

“We are delighted with Tap’s progress following the successful RTO earlier this year. To see both revenue and user numbers ahead of expectations in a challenging economic environment shows why we initially invested in Tap back in December 2021 and is a testament to the business its founders are building. 

The regulated status of Tap, under the Gibraltar Financial Services Commission licence, is providing considerable assurance to users joining from non-regulated platforms in what has been a very unsettling period in the crypto sector. The enhanced levels of user security that our platform offers presents an opportunity for Tap to continue its impressive growth trajectory this year and beyond.”

Business Review – Pre-RTO

In the six months to 31 December 2022, the entire activity of Quetzal was the work involved in completing the relevant due diligence, and legal and administrative work in relation to the RTO. On 1 November 2022, Quetzal entered into a Sale and Purchase Agreement with TGL to acquire its entire issued share capital. The decision to exercise its right to acquire TGL was based on the considerable progress TGL had made in terms of growing user numbers and revenue following Quetzal’s initial £1.5 million investment made on 3 December 2021 by way of a convertible loan. 

The financial results for the six months ended 31 December 2022 show a loss of £298,992 compared to a £104,689 loss for the same period in 2021. The increase in loss is primarily attributable to fees incurred in relation to the RTO. The Company’s net assets at 31 December 2022 were £2,559,858 (2021: £3,055,345).

Reverse Takeover

Post period-end, on 9 January 2023, Quetzal’s shareholders approved the RTO of TGL amongst other resolutions that included the name change from Quetzal Capital Plc to Tap Global Group Plc. As a result of the RTO, the Board welcomed David Carr as Chief Executive Officer, Arsen Torosian as Chief Strategy Officer and Des Hellicar-Bowman as a Non-Executive Director. As announced following admission, John Taylor remained on the Board as Non-Executive Chairman and Tony Quirke, previously Finance Director of Quetzal became Chief Financial Officer of the Company. Fungai Ndoro stepped down from the Board on the completion of the RTO. The Board thanks Fungai for her unstinting work towards the completion of the RTO.

The Company raised £3.1m in gross proceeds as part of the RTO primarily from strategic investors already active in cryptocurrency projects and businesses. With the RTO costs substantially paid in prior periods, the Company held net cash of approximately £4.0 million at the time of completion. This should provide substantial runway to profitability based on current projections and the significant levels of revenue already coming into the business.

The Directors of the Company accept responsibility for the contents of this announcement.

Enquiries:

About Tap Global

Tap is a fully regulated DLT Provider and provides fully integrated crypto-fiat exchange services with an associated neo banking payments platform.

Through a single regulated App, Tap’s over 100,000 users can access several major crypto exchanges and, utilising Tap’s proprietary Artificial Intelligence middleware, customers benefit from best-execution and pricing in real time. Through the Tap card, users can also convert their crypto to spend at more than 37 million merchant locations worldwide.

Founded in 2018, Tap is one of only a handful of unified solutions operators fully regulated to provide distributed ledger technology services and was the first crypto FinTech company approved by Mastercard in Europe.

Interim Statement of Comprehensive Income

All the activities of the Company are from continuing operations and investments.

The notes form part of these interim financial statements.

Interim Statement of Financial Position

The interim financial statements were approved and authorised for issue by the Board and were signed on its behalf by:

Anthony Quirke

Director

21 March 2023

The notes form part of these interim financial statements.

Interim Statement of Changes in Equity

The following describes the nature and purpose of each reserve within owners’ equity:

The notes form part of these interim financial statements.

Interim Statement of Cash Flows

The notes form part of these interim financial statements.

Notes to the Interim Financial Statements

Financial information

The financial information set out in these interim financial statements does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.  The Company’s statutory financial statements for the year ended 30 June 2022 have been filed with the Registrar of Companies. The auditor’s report on those financial statements was unqualified and did not contain a statement under Section 498(2) of the Companies Act 2006.

These interim results have not been audited nor have they been reviewed by the Company’s auditors under ISRE 2410 of the Auditing Practices Board.

These interim financial statements are for the six month period ended 31 December 2022.  They have been prepared following the recognition and measurement principles of FRS 102.  They do not include all of the information required for full annual financial statements and should be read in conjunction with the financial statements for the period ended 30 June 2022. 

Going concern

The directors, having made appropriate enquiries, consider that adequate resources exist and continued support of the directors is forthcoming for the Company to continue in operational existence for the foreseeable future, therefore, it is appropriate to adopt the going concern basis in preparing these interim financial statements for the period ended 31 December 2022.

1.           Administrative expenses

2.           Earnings per share

The calculation of earnings per share is based on the loss attributable to ordinary shareholders divided by the weighted average number of ordinary shares in issue being 877,141,001 during the period.  This results in a loss per share of 0.034p (2021: 0.10p).

3.            Investments

3.            Investments continued…

4.           Debtors

5.           Financial assets

6.           Creditors falling due within one year