TIDMSUG
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 United Kingdom, the Board is pleased to note that the Company's revenues
rose significantly from the previous year's level. The Company undertook
consultancy work for and provided support services to early-stage
entrepreneurs, generating revenue of £87,461* (2019, £45,256). A sharp rise in
administrative costs to £(234,477) (2019, £(130,807)), which was largely
composed of costs associated with gearing-up the support able to be provided to
endorsee entrepreneurs, resulted in an operating loss of £(147,016) (2019, £
(85,551)). The operating loss coupled, with a one-off investment impairment
charge of £40,000 and a small financing charge, resulted in an overall loss of
£(188,099) (2019, £(85,551)) translating into a loss per share of (18.62) pence
(2019, loss per share of (8.47) pence). At the end of the year, shareholders'
funds stood at £446,627 (2019, £634,726); cash and cash-equivalents in hand
stood at £675,958 (2019, £641,989) being an increase of £33,969.
* 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 U.K.,
providing support over several years to facilitate growth, including help with
future capital raising. Applicants must demonstrate and prove innovation,
viability and scalability in order to qualify for endorsement. A range of
sectors is considered, with a bias towards Tech, Software-as-a-Service (SaaS),
FinTech, AdTech, PropTech, Manufacturing, and Supply Chain, where Startup
Giants' management has prior experience and expertise.
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 five pence each at a price of £0.85 (eighty-five pence) each for
cash, to raise approximately £190,000 (one hundred and ninety thousand pounds)
gross. Simultaneously, 14,713 new shares were issued at the same price to
certain creditors in full settlement of liabilities marginally exceeding £
12,500 (twelve thousand five hundred pounds). The additional permanent equity
capital raised from incoming investment should enable the Company to increase
the resources it can dedicate to supporting an expanding number of
entrepreneurs without diminishing the capital available for investment, should
exceptional opportunities present themselves.
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. Virginia has been a
Director since prior to the Company's market admission in 2017 and, on behalf
of my colleagues at Startup Giants, I would like to thank her for her service
and wish her every success in the future.
In Virginia's stead the Directors will propose the election of Steven Paul
Tuson (46) as a Director of the Company. Steve, a UK national, holds a M.Sc.
from the University of Maastricht, Netherlands, in International Business
Studies. He is a regulated financial services and investment professional who
operates his business from Brussels, where he is currently a resident. Steve's
role at Startup Giants will be non-executive. The Directors expect him to
provide valuable guidance and help in corporate development and cementing ties
with potential co-investors in some of the Company's portfolio of
opportunities. A résumé of Steve Tuson will be available from the Company's
website at https://startupgiants.com.
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
London, 2nd June 2021
STARTUP GIANTS PLC
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARED 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 (188,099) (85,551)
income for the year
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 Share Retained Total
capital premium earnings
account
£ £ £ £
Balance at 1 January 2019 140,510 769,790 (190,023) 720,277
Year ended 31 December 2019:
Loss and total comprehensive income - - (85,551) (85,551)
for the year
Balance at 31 December 2019 140,510 769,790 (275,574) 634,726
Year ended 31 December 2020:
Loss and total comprehensive income - - (188,099) (188,099)
for the year
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 20 8,969 (4,464)
by) operations
Interest paid (1,083) -
Tax refunded/(paid) 1,083 -
Net cash inflow/(outflow) from 8,969 (4,464)
operating activities
Financing activities
Proceeds of new bank loans 25,000 -
Net cash generated from/(used 25,000 -
in) financing activities
Net increase/(decrease) in cash and 33,969 (4,464)
cash equivalents
Cash and cash equivalents at 641,989 646,453
beginning of year
Cash and cash equivalents at 675,958 641,989
end of year
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
END
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