TIDMBRSD
RNS Number : 9709M
Brandshield Systems PLC
19 September 2023
19 September 2023
BrandShield Systems plc
("BrandShield," the "Company," or the "Group")
Half year results for the six months ended 30 June 2023
Annualised Recurring Revenue, up 45% in H1 2023, continues to
underpin operational progress
BrandShield Systems plc (AIM: BRSD), a leading provider of
cybersecurity solutions for brand oriented digital risk protection
("DRP"), announces its results for the six months ended 30 June
2023 ('H1 2023').
Financial highlights
-- H1 2023 Annualised Recurring Revenue(1) ("ARR") up 46% to $9.71m (H1 2022: $6.67m)
-- Positive momentum continued with the August 2023 ARR figure
reaching $ 9.85 m, up 36 % vs. $7.26m in August 2022 .
-- Delivered revenue growth of 56.3% to $4.42m in H1 2023 (H1 2022: $2.83m)
-- Loss for the period decreased by 53% to $2.05m in H1 2023 (H1 2022: $4.37m)
-- As part of operational improvements Gross profit increased
from 48% in H1 2022 and 54% in December 2022 to 68% in H1 2023
-- Cash of $1.35m at period end (31 Dec 2022: $2.60m)
(1) Annualised Recurring Revenue is a non-GAAP measure and an
industry specific measure
Operational highlights
-- Strong new business momentum achieved in the first half of
2023, with the Company securing 45 new customer wins in the period
to take its total number of customers to 209. This growth continued
post-period end, and as at end of August 2023, BrandShield services
214 customers
-- Ongoing sales and marketing initiatives continues to support
the growth in the Company's customer footprint, expanding the
Group's presence across in key growth sectors such as
pharmaceutical, retail, ecommerce and finance
-- B randShield consolidated its position as one of the leading
Digital Risk Protection ("DRP") Provider
o BrandShield named the third best DRP service provider globally
in a 2022 review by Frost & Sullivan ("F&S") the global
business consultancy group.
o BrandShield recognised with the 2023 Global Digital Risk
Protection New Product Innovation and Best Practices Award by
F&S
Post period-end and Outlook
-- The Company has made a solid start to H2 2023 and looks
forward to reporting another period of both operational and
financial progress
-- Recent focus on reducing cash burn is having a marked impact
on gross margins as the Company continues to grow towards becoming
cash flow positive
Yoav Keren, Chief Executive Officer of BrandShield,
commented:
"I am pleased to report another solid six months of trading from
BrandShield, in which we continue to deliver record levels of ARR,
up 46% to $9.7 million p.a., underpinning our confidence in the
business.
Our ongoing sales and marketing efforts, alongside the growing
reputation that BrandShield continues to build across the industry
for innovation and product excellence, as highlighted by Frost
& Sullivan earlier in the year, continues to drive customer
growth.
We have made a solid start to H2 2023 and look forward to
reporting another period of both operational and financial
progress."
Enquiries:
BrandShield Systems plc
Yoav Keren, CEO +44 (0)20 3143 8300
Spark Advisory Partners Limited (Nominated
Adviser)
Neil Baldwin / Andrew Emmott / James Keeshan +44 (0)20 3368 3554
Shore Capital (Broker)
Toby Gibbs / James Thomas / Rachel Goldstein
(Corporate Advisory)
Henry Willcocks (Corporate Broking) +44 (0)20 7408 4090
Vigo Consulting (Financial Public Relations)
Jeremy Garcia / Kendall Hill / Peter Jacob
brandshield@vigoconsulting.com +44 (0)20 7390 0237
About BrandShield
Brandshield is a provider of cybersecurity solutions from brand
protection to online threat hunting. BrandShield detects online
threats and takes them down. The Company's client base is a growing
list of organisations including Fortune 500 and FTSE100 companies.
By utilising AI and big-data analysis, BrandShield monitors,
detects, and removes online threats facing companies. These threats
include social phishing, executive impersonation, fraud, brand
abuse, and counterfeits.
Chief Executive Officer's Review
Introduction
Given that the Company continues to grow quickly, the focus for
the first half of 2023 remained on continuing the rapid expansion
of BrandShield's offering worldwide. The Company's Annualised
Recurring Revenue ("ARR") grew to $9.71m, representing a 15%
increase relative to December 2022, and 46% higher than the same
period in the prior year. ARR is the key performance indicator
("KPI") for the Group, however there has been a concurrent effort
to reduce cash burn which has increased gross profits markedly and
continues to propel the BrandShield towards becoming cash flow
positive. Consequently, Gross profit increased from 48% in H1 2022
and 54% in December 2022 to 68% in H1 2023, and Loss for the period
decreased by 53% to $2.05m in H1 2023 (H1 2022: $4.37m).
As in previous periods, the Company's growth was underpinned by
the conversion of clients across a broad range of sectors and the
ongoing investment in and expansion of the Company's marketing and
sales functions. It is anticipated this will continue to impact
strong growth in client capture in H2 of 2023 which traditionally
shows the highest increases in new business.
Revenues for the six months ended 30 June 2023 increased 56.3%
to $4.42m (H1 2022: $2.83m). As at 30 June 2023, the Group had cash
of $1.35 million (31 Dec 2022: $2.60m).
As at 30 June 2023, the loss includes Share Based Payments of
$0.81m; the Company recognised the expense in the income statement
according to the fair value of the share options and warrants
determined using the Black-Scholes valuation model.
BrandShield's unique proposition
BrandShield's technology is well-placed to lead the ongoing
transition to a more digitised economy as enterprises continue to
recognise the importance of increasing their online protection by
securing comprehensive DRP solutions from external providers to
complement internal cybersecurity operations. Frost and Sullivan
("F&S") recognised the strong performance and dynamic
capabilities of BrandShield's solutions in its 2022 Digital Risk
Protection Services Report in which it awarded the Company 3(rd)
place globally. F&S highlighted BrandShield's innovation,
growth and its ease of use for clients, whilst commending the
Company for its extensive brand protection capabilities and
effectiveness in detecting and eliminating a wide range of
cyberthreats from phishing to brand impersonation.
F&S expects the DRP market to reach $917.7m in 2026,
expanding at a compound growth rate of 39.7%, and BrandShield is
uniquely placed to exploit this significant market size expansion
through leveraging the following key strengths:
-- A mature product, creating higher barriers to entry
-- Ongoing investment in R&D to ensure market leadership is maintained
-- AI/ML powered technology
-- Strong threat network detection capabilities
-- Unique image recognition and Optical Character Recognition
("OCR") - focusing on detection of emerging threats on social media
and ecommerce marketplaces
-- Big data investigation tools with multi-brand and platform capabilities
-- Strong takedown capabilities across all digital threats
-- Multi-layered approach to detection and successful takedown of online threats
-- BrandShield 3.0 user interface which F&S described as
enabling legal, marketing and cyber-security teams to collaborate
more efficiently and mitigate threats on all fronts
Strategy
The Company remains in a strong growth phase in which the focus
continues to be on client conversion and driving ARR but set within
the context of driving gross margins through a reduction in cash
burn. The growth to 209 clients at the end of H1 2023 is strong
evidence of the Company's ability to convert new clients whilst
retaining, and also delivering upsells to, existing clients who
have remained with BrandShield for several years. Retention of
existing clients is an ever-increasing focus of the team and an
area of strategic importance for the Company given the
well-publicised global financial headwinds and macroeconomic
pressures facing corporates.
Product innovation is a key pillar of the Company's overarching
growth strategy, as evidenced by the launch of 'BrandShield 3.0' in
2022 which has helped elevate BrandShield's DRP offering, increase
its operational efficiency and improve gross margins. The Company
invests considerably in R&D, boasting a highly experienced team
dedicated to developing cutting-edge products and innovative add-on
features, as well as creating ongoing automations to improve
efficiencies. This has not only helped the Company generate
significant cross-sell and upsell opportunities but continues to
underpin new customer engagement. Concurrently, BrandShield
continues to monitor the evolution of AI technology, ensuring it
responds rapidly to industry trends, so its solutions remain at the
forefront of market innovation.
Although BrandShield is primarily focused on its core US and
European client base, it is becoming increasingly recognised as a
leading global player in DRP across Asia. The business is set up to
scale on a global basis and is able to service brands across all
geographies without the requirement to incur additional operating
expenses in those regions.
Outlook
The Company has executed on its plan to reinforce sales and
marketing teams across the globe and at the same time re-structured
a number of operational functions to increase gross margin. These
initiatives have laid the foundation for continued expansion into a
rapidly growing market and the transition to becoming cash flow
generative. The opportunity to seize market share in a fast-growing
sector remains the overriding focus and the Board looks forward to
reporting on full year trading after what it believes will be a
strong H2 2023 performance.
Yoav Keren
Chief Executive Officer
20 September 2023
UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION
ON BRANDSHIELD SYSTEMS PLC FOR THE 6 MONTH PERIODED 30 JUNE
2023
CONSOLIDATED INCOME STATEMENT
For the periods ended 30 June
Unaudited Period
ended 30 June Unaudited Period
2023 ended 30 June 2022
Note $ $
----------------------------- ---- ---------------- -------------------
Revenue 2 4,420,266 2,828,073
Cost of sales (1,400,761) (1,469,009)
Gross profit 3,019,505 1,359,064
---------------- -------------------
Research and Development
expenses 3 (1,512,988) (1,648,081)
Sales and Marketing expenses 3 (2,506,113) (1,810,787)
Operating expenses 3 (1,497,047) (2,044,349)
---------------- -------------------
(5,516,148) (5,503,217)
---------------- -------------------
Loss from operations (2,496,643) (4,144,153)
---------------- -------------------
Net finance income (expense) 351,634 30,376
Loss before tax (2,848,277) (4,113,777)
---------------- -------------------
Tax expense - -
Loss for the period (2,848,277) (4,113,777)
================ ===================
Basic and diluted loss
per share (cent) 4 (0.017) (0.032)
================ ===================
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the periods ended 30 June
Unaudited Period
ended 30 June Unaudited Period
2023 ended 30 June 2022
$ $
---------------------------- ---------------- -------------------
Loss for the period (2,848,288) (4,113,777)
Other comprehensive income:
Items that will or may
be reclassified to profit
or loss:
Other comprehensive(loss)
/ income 799,615 (222,714)
---------------- -------------------
Total comprehensive loss (2,048,673) (4,336,491)
================ ===================
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June
Unaudited Period
ended 30 June Audited Year ended
2023 December 31, 2022
Note $ $
------------------------------ ---- ---------------- ------------------
Non-current assets
Property, plant and equipment 176,843 180,777
Right of use asset-office
lease 904,515 1,080,599
Financial assets at fair
value through profit or
loss 12 3,840,920 3,663,072
---------------- ------------------
4,922,278 4,924,448
---------------- ------------------
Current assets
Trade and other receivables 5 2,170,011 2,791,518
Financial assets at fair
value through profit or
loss 19,180 18,220
Other financial assets 15,148 14,447
Cash and cash equivalents 6 1,352,922 2,605,605
Restricted cash 425,471 372,707
Assets classified as held
for sale 266,356 254,023
---------------- ------------------
4,249,088 6,056,520
---------------- ------------------
Total assets 9,171,366 10,980,968
================ ==================
Current liabilities
Short term loan and bank
overdraft 7 2,166,560 2,278,645
Trade and other payables 8 5,721,156 5,969,822
Lease liability- current 314,758 321,727
---------------- ------------------
8,202,474 8,570,194
---------------- ------------------
Non-current liabilities
Lease liability - non-current 596,250 795,557
Other payables 28,560 30,079
---------------- ------------------
624,850 825,636
---------------- ------------------
Total liabilities 8,827,324 9,395,830
================ ------------------
Net assets 344,042 1,585,138
================ ==================
Equity attributable to
owners of the parent
Share capital 11 9,929,842 9,929,842
Share premium 11 32,060,989 32,060,989
Reverse acquisition reserve (20,653,597) (20,653,597)
Other reserves 6,292,217 4,685,025
Retained earnings (27,285,409) (24,437,121)
Total equity 344,042 1,585,138
================ ==================
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Unaudited
Reverse
Share premium acquisition Other Retained
Share capital reserve reserves earnings Total
$ $ $ $ $
------------------------ ------------- --------------- -------------- -------------- ------------ -----------
Balance as at 1 January
2022 9,299,228 27,686,289 (20,653,597) 4,340,744 (18,393,526) 2,279,168
------------- --------------- -------------- -------------- ------------ -----------
Prior year adjustment - - - (1,125,999) 1,125,999 -
Loss for the period
ended 30 June 2022 - - - - (4,113,777) (4,113,777)
Share based payments - - - 1,202,546 - 1,202,546
Issue of share capital 300,803 2,976,840 - - - 3,277,642
Exchange differences
on translation - - - (222,714) - (222,714)
Balance as at 30 June
2022 9,600,031 30,663,129 (20,653,597) 4,194,607 (21,381,304) 2,422,866
Reverse
Share premium acquisition Other Retained
Share capital reserve reserves earnings Total
$ $ $ $ $ $
------------------------ ------------- --------------- -------------- -------------- ------------ -----------
Balance as at 1 January
2023 9,929,842 32,060,989 (20,653,597) 4,685,025 (24,437,121) 1,585,138
------------- --------------- -------------- -------------- ------------ -----------
Loss for the period
ended 30 June 2023 - - (2,848,288) (2,848,288)
Issue of share capital - - -
Share based payments - - 807,577 - 807,577
Exchange differences
on translation - - 799,615 - 799,615
------------- --------------- -------------- -------------- ------------ -----------
Balance as at 30 June
2023 9,929,842 32,060,989 (20,653,597) 6,292,217 (27,285,409) 344,042
------------- --------------- -------------- -------------- ------------ -----------
UNAUDITED CONSOLIDATED CASH FLOW STATEMENTS
For the periods ended 30 June
Unaudited Period Unaudited Period
ended 30 June ended 30 June
2023 2022
$ $
------------------------------------- ---------------- ----------------
Cash flows from operating activities
Loss for the year (2,848,288) (4,113,777)
Adjustments for:
Depreciation 13,513 15,615
Depreciation of the right of
use 176,084 -
Share based payment expense 807,577 1,202,546
Foreign exchange on operations 503,711 245,090
Decrease (Increase) in trade
and other receivables 620,806 (751,202)
Increase in other financial
assets - (120,128)
Increase in restricted cash (52,764) (178,631)
Increase (Decrease) in trade
and other payables (248,665) 1,229,390
---------------- ----------------
Net cash flows from operating
activities (1,028,026) (2,471,097)
---------------- ----------------
Investing activities
Purchase of property, plant
and equipment (18,382) (199,607)
---------------- ----------------
Net cash used in investing
activities (18,382) (199,607)
---------------- ----------------
Financing activities
Proceeds from loans and borrowings - 377,136
Repayment of right of use lease
obligation (206,275) -
Proceeds from issue of ordinary
shares - 3,277,642
---------------- ----------------
Net cash (used in)/generated
from financing activities (206,275) 3,654,778
---------------- ----------------
Net (decrease) / increase in
cash and cash equivalents (1,252,683) 984,074
Cash and cash equivalents at
beginning of period 2,605,605 1,194,275
Foreign exchange differences - -
on cash
---------------- ----------------
Cash and cash equivalents at
end of period 1,352,922 2,178,349
================ ================
Non-cash transactions
The Company operates an equity-settled, share-based scheme under
which the Company receives services from employees as consideration
for equity instruments (options) of the Company. The value of the
employee services received is expensed in the Income Statement and
its value is determined by reference to the fair value of the
options granted, calculated using the Black-Scholes model.
NOTES TO THE FINANCIAL INFORMATION
1. General information and basis of preparation
The principal activity of BrandShield Systems plc (the
'Company') is the development of a digital risk protection solution
to prevent, detect and remove online threats, through its research
and development centre in Israel.
Basis of preparation
The condensed consolidated interim financial statements
("Interim Financial Statements") of the Group have been prepared in
accordance with the AIM Rules for Companies and UK adopted
international accounting standards and the Companies Act 2006. They
have been prepared under the assumption that the Group operates on
a going concern basis. As permitted, the Group has chosen not to
fully adopt IAS 34 in preparing the Interim Financial Statements.
The Interim Financial Statements have been prepared under the
historical cost convention, as modified by the revaluation of
financial assets at fair value through profit or loss.
The Interim Financial Information has been prepared under the
same basis of preparation and accounting policies as adopted in the
audited annual financial statements for the period to 31 December
2022, which were authorised by the Board on 2 July 2023. The
Interim Financial Statements should be read in conjunction with
these annual financial statements.
The interim financial information is presented in US
Dollars.
Going concern
The financial statements have been prepared on the assumption
that the group will continue as going concern. Under the going
concern assumption, an entity is ordinarily viewed as continuing in
business for the foreseeable future with neither the intention nor
the necessity of liquidation, ceasing trading or seeking protection
from creditors pursuant to laws or regulations.
The wording included in the going concern policy and relevant
disclosures within the Annual Report for the year ended 31 December
2022 is still applicable to the group as at 30 June 2023.
Critical accounting estimates
The preparation of Interim Financial Statements in conformity
with IFRS requires the use of certain critical accounting
estimates. It also requires management to exercise its judgement in
the process of applying the Company's accounting policies. The key
assumptions used in preparation of the Interim Financial
Information are in conformity with the assumptions used in the
annual financial statements unless otherwise stated.
Accounting policies
The same accounting policies, presentation and methods of
computation have been followed in the Interim Financial Statements
as were applied in the Company's audited annual financial
statements.
The company started implementing IFRS 16 for a new leasing
agreement (starting FY2022 reports).
There are no new standards issued but not yet effective that
have been early adopted or are expected to have a material impact
on the Company.
2. Revenue
Revenue is generated from the sale of Digital Risk Protection
solutions. In the period ended 30 June 2023, 93 % of sales were
made overseas (The period ended 30 June 2022: 96%). The majority of
overseas sales are made in the USA.
3. Research and Development expenses
Unaudited Period Unaudited Period
ended 30 June ended 30 June
2023 2022
$ $
-------------------- ---------------- ----------------
Salaries (854,478) (817,191)
Share based payment (322,210) (488,592)
Other expenses (336,300) (342,298)
---------------- ----------------
(1,512,988) (1,648,081)
---------------- ----------------
Sales and marketing expenses
Unaudited Period Unaudited Period
ended 30 June ended 30 June
2023 2022
$ $
-------------------------- ---------------- ----------------
Salaries (1,348,390) (658,121)
Advertising and Marketing (1,008,436) (950,831)
Share based payment (149,287) (201,835)
(2,506,113) (1,810,787)
---------------- ----------------
Operation expenses
Unaudited Period Unaudited Period
ended 30 June ended 30 June
2023 2022
$ $
----------------------------- ---------------- ----------------
Salaries (513,128) (523,567)
Share based payment (320,170) (493,692)
Rent and utilities - (258,891)
Depreciation of the right of
use (176,084) -
Other expenses (487,665) (768,199)
---------------- ----------------
(1,497,047) (2,044,349)
---------------- ----------------
4. Loss per share
Basic loss per share is calculated by dividing the profit
attributable to equity holders of the Company by the weighted
average number of ordinary shares in issue during the year.
Unaudited Period Unaudited Period
ended 30 June ended 30 June
2023 2022
$ $
------------------------------------ ---------------- ----------------
Loss attributable to equity holders
of the Company 2,848,288 4,113,777
Weighted average number of shares 170,331,874 129,171,159
---------------- ----------------
Loss per share (cents) (0.017) (0.032)
---------------- ----------------
Since the Company is loss making, the share options, warrants
and convertible loans currently in issue are non-dilutive.
5. Trade and other receivables
Unaudited
Period ended 30 Audited Year ended
June 2023 31 December 2022
$ $
------------------------------ ---------------- ------------------
Trade receivables 2,092,412 2,607,551
Other receivables and prepaid
expenses 77,599 183,967
---------------- ------------------
2,170,011 2,791,518
---------------- ------------------
6. Cash and cash equivalents
Unaudited Period Audited Year ended
ended 30 June 2023 31 December 2022
$ $
-------------------------- ------------------- ------------------
Cash and cash equivalents 1,325,922 2,605,605
------------------- ------------------
1,325,9 22 2,605,605
------------------- ------------------
7. Short term loan and bank overdraft
BrandShield Ltd has an agreement with Leumi Bank to provide a
revolving credit line facility of up to 8 million NIS (c. $2.2
million) for 24 months, ending on 26 September 2023, the renewal of
which is in the process of being negotiated by the Company. The
credit line bears a competitive interest rate. The facility allows
drawdown of up to four times Monthly Revenue (net of churn) and
includes covenants of a type typical of such an agreement.
8. Trade and other payables
Unaudited Period Audited Year ended
ended 30 June 2023 31 December 2022
$ $
----------------------- ------------------- ------------------
Trade payables 837,713 671,657
Salaries, accruals and
taxes 907,697 1,068,291
Royalties Payable 394,030 426,706
Deferred revenue 3,581,716 3,581,903
5,721,156 5,969,822
------------------- ------------------
9. Related party transactions
BrandShield Limited is connected to its predecessor Domain the
Net Technologies Limited (the "Related Party"), a company
registered in Israel. BrandShield Limited demerged from the Related
Party in 2013 and has directors in common. Furthermore, the two
parties share several operational costs, including sharing rental
costs. There is a formal agreement between the Company and its
related party (signed 17 May 2020).
BrandShield Limited is connected to its parent company
BrandShield Systems plc. There is a formal service agreement
between the two companies (signed 25 July 2021).
BrandShield Limited is connected to its subsidiary BrandShield
Inc.
10. Share based payments
The Company operates an equity-settled, share-based scheme under
which the Company receives services from employees as consideration
for equity instruments (options and warrants) of the Company. The
fair value of the third-party suppliers' services received in
exchange for the grant of the options is recognised as an expense
in the Income Statement or charged to equity depending on the
nature of the service provided. The value of the employee services
received is expensed in the Income Statement and its value is
determined by reference to the fair value of the options
granted:
-- including any market performance conditions.
-- excluding the impact of any service and non-market
performance vesting conditions (for example, profitability or sales
growth targets, or remaining an employee of the entity over a
specified time period); and
-- including the impact of any non-vesting conditions (for
example, the requirement for employees to save).
The fair value of the share options and warrants are determined
using the Black-Scholes valuation model at the date of grant.
Non-market vesting conditions are included in assumptions about
the number of options that are expected to vest. The total expense
or charge is recognised over the vesting period, which is the
period over which all of the specified vesting conditions are to be
satisfied. At the end of each reporting period, the entity revises
its estimates of the number of options that are expected to vest
based on the non-market vesting conditions. It recognises the
impact of the revision to original estimates, if any, in the Income
Statement or equity as appropriate, with a corresponding adjustment
to a separate reserve in equity.
When the options are exercised, the Company issues new shares.
The proceeds received, net of any directly attributable transaction
costs, are credited to share capital (nominal value) and share
premium when the options are exercised.
11. Share capital and share premium
Ordinary shares are classified as equity. Incremental costs
directly attributable to the issue of new ordinary shares or
options are shown in equity as a deduction, net of tax, from the
proceeds.
Number of Number of
Ordinary Deferred Share
shares shares capital Share premium Total
$ $ $
------------------- ----------- ---------- --------- --------------- ----------
As at 1 January
2022 117,950,921 32,385,056 9,299,228 27,686,289 36,985,517
----------- ---------- --------- --------------- ----------
Issue of shares 23,214,286 - 300,803 2,976,839 3,277,642
----------- ---------- --------- --------------- ----------
As at 30 June 2022 141,165,207 32,385,056 9,600,031 30,663,128 40,263,159
----------- ---------- --------- --------------- ----------
As at 1 January
2023 170,331,874 32,385,056 9,929,842 32,060,989 41,990,831
Issue of shares - - - - -
----------- ---------- --------- --------------- ----------
As at 30 June 2023 170,331,874 32,385,056 9,929,842 32,060,989 41,990,831
----------- ---------- --------- --------------- ----------
12. Financial assets at fair value through profit and loss
The Company reviews the fair value of its unquoted equity
instruments at each Statement of Financial Position date. This
requires management to make an estimate of the value of the
unquoted securities in the absence of an active market.
The Company follows the guidance of IFRS 9 to determine when an
investment at fair value through profit or loss is impaired. This
determination requires significant judgement. In making this
judgement, the Company evaluates, among other factors, the duration
and extent to which the fair value of an investment is less than
its cost; and the financial health of the short-term business
outlook for the investee, including factors such as industry and
sector performance and operational and financing cash flow.
Management also considers external indicators such as technological
advances and trends, commodity prices, investment performance and
demand for the underlying commodity. Financial assets held at fair
value through profit or loss are assessed individually.
Unaudited Period Audited Year ended
ended 30 June 31 December 2022
2023
$ $
----------------- ---------------- ------------------
Opening balance 3,663,072 4,112,107
Foreign exchange 177,848 (449,035)
---------------- ------------------
Closing balance 3,840,920 3,663,072
================ ==================
Financial assets include the following:
Unlisted securities Unaudited Period Audited Year ended
ended 30 June 31 December 2022
2023
$ $
-------------------- ---------------- ------------------
UK 3,840,920 3,663,072
3,840,920 3,663,072
---------------- ------------------
At 30 June 2023, the Directors' view of fair value of the
Company's investment in WeShop Ltd is $3,840,920 ($3,663,072 at 31
December 2022). This remains in line with the aggregate cost of
investment. While WeShop remains pre-revenue, the Directors
continue to believe that social commerce represents an exciting and
authentic digital shopping opportunity, particularly post Covid-19
which has driven more traffic online and away from the high street.
While the Directors are hopeful of a deliverable transaction at an
attractive valuation, they consider it prudent to continue to fair
value the asset at cost.
13. Subsequent events
No subsequent events were identified between the reporting
period and issue of the interim financial information.
14.Availability of Interim Report
The interim report is available on www.brandshield.com
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END
IR EAKNNFESDEFA
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