TIDMSUG
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY STARTUP GIANTS
PLC TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE
REGULATION (EU) NO. 596/2014, AS AMED ("MAR"). ON THE PUBLICATION OF THIS
ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE ("RIS"), THIS INSIDE
INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
Startup Giants plc
("Startup Giants" or the "Company")
Interim Results for the six months period to 30 June 2020
Board Statement
Startup Giants plc is pleased to announce its unaudited interim results for the
six months period from 1st January 2020 to 30th June 2020. 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, are:
ITEM 30 June 2020 30 June 2019
Operational loss: GBP(5,975) GBP(21,254)
Loss per share: (0.59) pence (2.1) pence
Cash and cash equivalents GBP682,289 GBP642,680
Shareholders' funds GBP628,751 (2019: GBP699,023)
Review of Business During the Period
During the period under review, the Company has continued to increase its
portfolio of founders looking for acceleration of their start-up businesses.
Despite the Covid-19 lock-down being in place from 24th March to 4th July of
this year in England, the Company announced in the statement dated 3rd June
2020 accompanying the final results for 2019 that it had received official
Endorsing Body status from the Home Office to qualify and endorse foreign
entrepreneurs on their innovation, viability, and scalability, and to bring
their intellectual property to the United Kingdom for growth and investment.
Startup Giants can now be found listed on the Government's website as an
approved body that can endorse foreign applicants' business concepts for the
purpose of applying for either an Innovator or Startup visa.
Startup Giants has an initial allocation of 25 endorsements a year that it can
issue, and can apply for an increase should the need arise. Each founding team
joins the growth programme, providing business advice and support for three
years, with fees starting at GBP1,000 per month. In some cases, the Company
waivers the fees in exchange for an equity in the business.
Current Trading and Post- Balance Sheet Developments
Current trading remains in line with the Directors' expectations at the
beginning of the second half of the financial year.
For the period April 2020 to date, which spans the final two months of the
first three months of the second half of financial 2020 Startup Giants has been
qualifying many applications from foreign innovators for both the Startup and
Innovator Route visa. The Company has received over 200 applications from
foreign founders, with a consistent growth of applications coming in. Startup
Giants has issued 13 endorsement letters so far for visa applicants joining
their three-year programme for funding and growth in their business. There are
currently over 70 applications at interview or qualifying stage, with seven in
the process of confirming their eligibility to join the programme.
Outlook
The Company will continue to focus on building its international innovation
support alongside supporting UK founders. By 2022, Startup Giants aims to be
helping over 75 innovative UK businesses of overseas origin at any one time.
Other Information
Along with this regular financial report the Company is this year taking the
opportunity to send shareholders with their interim reports some additional
information in the form of a separate "Shareholder News Update" dated September
2020. This short document attempts to paint an overview of the Company's
business model and to describe how the Directors believe this can lead to both
growth in revenue and to capital growth for the Company through its
involvements with and participations in successful start-ups which it endorses.
In the interests of transparency, the text of the September 2020 Shareholder
News Update is reproduced immediately above the responsibility statement at the
end of this announcement. A downloadable PDF copy of the Shareholder News
Update shall be available from Startup Giants' website: https://
startupgiants.com/investor-relations/.
Readers of the Shareholder News Update should be clear that it does not form a
part of Startup Giants' Interim Results for the six months period to 30 June
2020.
Conclusion
The Directors would like to thank shareholders for their continuing support and
look forward to informing them of developments at Startup Giants during the
remainder of the current financial year and beyond.
Jeb Buckler,
Chief Executive Officer,
Startup Giants plc
29th September 2020
Startup Giants plc
Statement of Comprehensive Income
Six months ended 30 June 2020
Six months ended Six months ended
30 June 2020 30 June 2019
GBP GBP
Turnover 44,082 45,245
Administrative expenses (50,057) (66,499)
Operating loss (5,975) (21,254)
Taxation - -
Loss for the period (5,975) (21,254)
Earnings per share:
Basic and Diluted (pence) (0.59)p (2.1)p
Startup Giants plc
Statement of Financial Position
As at 30 June 2019
30 June 2020 30 June 2019
GBP GBP
Non-current assets:
Goodwill 24,584 29,584
Investments 40,000 40,000
64,584 69,584
Current assets:
Trade and other receivables 49,058 70,982
Cash and cash equivalents 682,289 642,680
731,347 713,662
Total assets 795,931 783,246
Current liabilities:
Trade and other payables 142,180 84,223
Bank borrowings 25,000 -
167,180 84,223
Net current assets 564,167 629,439
Total liabilities 167,180 84,223
Net assets 628,751 699,023
Equity:
Called up share capital 140,510 140,510
Share premium account 769,790 769,790
Retained earnings (281,549) (211,277)
Total equity 628,751 699,023
Startup Giants plc
Statement of Cash Flows
Six months ended 30 June 2020
Six months ended Six months ended
30 June 2020 30 June 2019
GBP GBP
Loss for the year after tax (975) (21,254)
Adjustments for:
Amortisation of intangible assets 2,500 2,500
Movement in trade and other 1,566 5,768
receivables
Movement in trade and other payables 12,209 9,213
Cash generated/(absorbed) by 15,300 (3,773)
operations
Investing activities:
Purchase of investments - -
Financing activities:
Bank loan received 25,000 -
Increase/(decrease) in cash and cash 40,300 (3,773)
equivalents
Cash and cash equivalents at 641,989 646,453
beginning of period
Cash and cash equivalents at end of 682,289 642,680
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.
Text of Shareholder News Update
SEPTEMBER 2020
"Startup Giants this year received official Endorsing Body status from the Home
Office to qualify and endorse the innovation, viability, and scalability of
business ventures of foreign entrepreneurs wishing to commercialise, grow and
finance their intellectual property in the United Kingdom.
We are proud now to be accredited and approved by the British Home Office as an
Endorsing Body for foreign innovators.
Startup Giants can now be found listed on the UK Government's website as an
approved body able to endorse foreign applicants' business concepts for the
purpose of applying for either an Innovator or Startup visa.
Over the past five years, we have strengthened links with a number of strategic
partners such as immigration law firms, which introduce overseas investors and
innovators to Startup Giants.
Between the introducing lawyers and associates, and direct applicants, we
consider only innovative business models that we believe meet the Home Office's
strict criteria. In some cases, the overseas applicant has already studied at a
university in the UK and so already meets the educational and linguistic
thresholds, as well as having the required capital. In many other cases,
candidates are looking to move to the UK with an innovation or an existing
business.
Together, we work with these law firms in order to manage the administration
process with the Home Office and ensure that every box is ticked so that our
applicants stand the best chance of being granted a right to live in the UK and
bring their business visions to life here.
SUG has an initial allocation of 25 endorsements a year; it may apply to the
Home Office to increase this quota from 25 to 50+ deals per year, if the
original quota proves too low.
Bringing innovative, viable, and scalable business ideas to life in the United
Kingdom
Mitigating risk with expertise at all stages of development and investment
Long-term scalability requires a plan for sustainable growth. We qualify each
business by assessing the following areas before engaging on a three-year
strategy and growth plan:
INNOVATION
Does the applicant have a genuine, original business plan that meets new or
existing market needs and/or creates a competitive advantage?
VIABILITY
Does the applicant have, or are they actively developing, the necessary skills,
knowledge, experience and market awareness to run the business successfully?
SCALABILITY
Is there evidence of structured planning, and of potential for job creation and
growth into national markets?
Bringing innovative, viable, and scalable business ideas to life in the UK
After being granted a visa, founders join the Startup Giants' growth programme
for up to three years, thus creating for Startup Giants a steady and consistent
pipeline of deal flow to bring to its syndicated investors.
QUOTA
Startup Giants has an initial allocation of 25 endorsements per year that it
can issue, and can apply for an increase should the need arise.
PROGRAMME
Each founding team joins the growth programme, which provides business advice
and support for three years, with fees starting at GBP1,000 per month.
DEAL FLOW
By 2022, the Directors believe that, at any one time, Startup Giants will have
75+ foreign innovative businesses under management and available for
investment.
Updated visa metrics (September 2020)
During the period April to September, Startup Giants has been qualifying many
applications from foreign innovators for both the Startup and Innovator Route
visa.
APPLICANTS
Startup Giants has received over 200 applications from foreign founders, with a
consistent growth trend in the number of applications being submitted to us.
PENDING
There are currently over 70 applications at interview or qualifying stage, with
seven in the process of confirming their eligibility to join the programme.
ISSUED
Startup Giants has issued 13 endorsement letters so far for visa applicants
joining their three-year programme for funding and growth in their business.
Startup Giants is propelling the UK forwards to become leaders of innovation
Startup Giants PLC is a tech innovation venture builder and accelerator,
building a portfolio of start-ups with high potential.
Founded in 2015 on the belief that entrepreneurs, who have ideas that can
positively impact the way we live, should have access to the funding they need
to become leading players in their spheres.
Startup Giants is supported by the Department for International Trade and has
been granted Official Endorser status by the Home Office.
You will find our shares traded on the Aquis Exchange Growth Market in London,
search for AQSE: SUG
Our founders are the future entrepreneurial leaders of innovation. Together
with them, we are helping ensure that the UK is richly diverse, talented and
inclusive.
How are we unique in our marketplace?
Where some seed accelerators drop off after three months, we apply a much
stronger vetting process before we invest and partner with a founder.
It's a three-year contract, the founder is then placed on an accelerator
programme for concept improvement, marketing, branding, whilst given all of the
financial and accounting and legal assistance they need to create their MVP and
refine it for their marketplace.
We build entrepreneurs. We invest in the founder's idea and their mindset.
During the three years, we help them grow to the point where they are eligible
for higher investment rounds, where we may also exercise our rights to
participate in their business.
Obsessed with growth
We're obsessed with growth. Innovative, verifiable and scalable business
demands it. Startup Giants makes money from the moment we on-board a new
founder. Here's how:
Each deal Startup Giants endorses and completes adds to the Company's recurring
monthly revenues and pipeline of deals available for investment.
Startup Giants also takes equity and/or options to participate in businesses
that it supports early on in the growth programme. Growth in the value of any
individual business should thus be reflected in Startup Giants' balance sheet
and, in time, in its share price.
Startup Giants has a constant pipeline of applicants to consider. Experts
across multiple fields of legal, business and marketing view and speak to each
applicant as part of a comprehensive application and support process.
Startup Giants has also reached out to other business angel groups and venture
capital funds to build relationships that may participate in follow-on
investment rounds with its founders and successful visa candidates.
Because innovation never sits still
In line with its own business goals and values, Startup Giants is reviewing the
following future initiatives for rollout:
Co-investment fund
An SEIS/EIS co-investment fund that provides a 'cornerstone' (say 30%)
commitment to its deals (conditional on a successful funding round), which will
allow SUG to scale-up significantly the number of deals it can take through a
funding round (thereby increasing the number of options to participate in SUG's
portfolio; and its accelerator fee revenue).
Strategic partner investments
The creation of a Venture Builder fund from which SUG would allocate pre-seed
funding to UK startup businesses, wherein the fund would largely control the
spending on trusted and necessary resources (rather than
writing a cheque to founders) in order to reduce risks, manage cash-flow and to
position SUG as a strategic partner to the business.
Subscription-based investing
A subscription model for smaller retail investors to invest regularly and tax-
efficiently under SEIS/EIS on a regular plan, e. g. GBP100 to GBP500 per month, to
access and build a portfolio. This would be a managed approach, where SUG
allocated or advised on allocation of the monthly subscriptions.
The future is 'appy
SUG is in the throes of organising a global app competition within key
universities and colleges worldwide, to source team talent and design a whole
suite of business apps to help people become better founders and entrepreneurs,
with the entire suite being available for a single monthly subscription.
Moving with the times ...
A number of other platforms provide deal- flow to investors via proprietary
platforms, in some cases using a subscription
model. SUG is considering releasing such an app to enable high net worth
business angels and/or venture capital firms to access a portal to see and, if
sufficiently impressed, invest in any of Startup Giants' deals.
A note from the founder and CEO of Startup Giants, Jeb Buckler
Much has happened for everyone over the past 12 months.
Our Company has taken major steps forwards despite of the growing global
challenges which, as we see it, have only heightened the need for positive
future innovations to be shared globally as quickly as possible.
We are leaping forwards. As we develop our branding, we want our values to be
crystal clear. Our entire Startup Giants' team was unanimous in voting to
conclude this document with our vision, to inspire confidence in everything we
do and for our partners to act accordingly. Here it is:
We are a company that is obsessed with ideas and innovation.
These can only come from people.
Diversity is therefore our norm.
Startup Giants is inclusive.
We get to know our founders, their idea, and if it's right for investment,
we'll empower them to flourish.
We're in the business of creating legacies of positive innovation.
Nothing more, nothing less.
Join us and be inspired."
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;
Graham.Atthill-Beck@kbrl.co.uk; blackpearladvisers@gmail.com
Brinsley Holman: +44 20 7464 4098: Brinsley-Holman@kbrl.co.uk
END
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