Annual Financial Report

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)

 

FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2022

 

The directors of Startup Giants (the “Directors”) present below the Company’s audited financial results for the year ended 31 December 2022.  Startup Giants is a UK-based start-up accelerator that invests in and mentors internet technology start-up businesses in the UK and internationally.

 

The financial information below is extracted from, but does not on its own constitute, the Company’s statutory financial statements.  These are contained in the Annual Report and Financial Statements for the Year Ended 31 December 2022, which are expected to be posted to shareholders imminently, and which will then be immediately available on the Company’s website (startupgiants.com).

 

Financial Results for the Year Ended 31 December 2022

 

Startup Giants undertook consultancy work for and provided support services to early-stage entrepreneurs, generating revenue of £320,957 (2021: £623,839).  The reduced revenue in comparison with 2021 reflects tightening economic conditions and in specific terms is mainly attributable to a lesser number of new fee-paying visa applicants joining the Company’s portfolio on its standard business support programme.  There was also a reduction in administrative expenses, which were largely composed of costs associated with the support provided to endorsee entrepreneurs, to £456,368 (2021: £579,368).  The Company recorded an operating loss of £135,411 (2021: profit of £44,471) and a total comprehensive loss of £136,514 (2021: profit of £43,814) translating into a loss per share of 10.94 pence (2021: profit of 3.88 pence per share).  At the end of the year, net assets stood at £556,134 (2021: £692,648); cash and cash-equivalents in hand stood at £712,389 (2021: £1,098,838).

 

Significant Features of Financial 2022

 

The focus of Startup Giants for the majority of 2022 remained on supporting founders already in the Company’s portfolio to target their early stage investment rounds with private investors and funds within the Company’s network, as well as the selection and support of global opportunities and talent from visa applicants seeking to bring their innovation to the United Kingdom, in order to further expand the Company’s portfolio of founders.

 

During the second half of the year, the Company also ran trials of a partnership program with several startup mentoring organisations providing access to over 200 nurtured startups, and 20 independent venture capital syndicates, qualifying partner investment opportunities at pre-seed and seed stage, and facilitating demo day introductions to the venture capital syndicates for companies located in the UK, India, the USA, Canada, and the Middle East.  The Company used feedback from these trials to build on and strengthen its engagement model with its founders with the launch of a pre-funding bootcamp, being made available to founders that are ready-to-raise to improve their level of preparedness before entering a roadshow with investors.

 

In that latter half of the year, the Company also initiated the development of an online platform to support their network of independent venture capital syndicates and will look to expand the number of partners going forwards on a region by region basis.

 

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 continued its core focus to expand its portfolio of founders with innovative concepts, where the Company receives either straight equity or a warrant on shares for longer-term asset appreciation, as well as building on initiatives previously put in place for diversifying regionally.

 

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.

 

 

Jeb Buckler

 

Chairman & CEO

 

 

 

 

STARTUP GIANTS PLC

 

 

 

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2022

 

 

 

 

 

 

2022

2021

 

Notes

£

£

 

 

 

 

Revenue

2

320,957

623,839

 

 

 

 

 

 

Gross profit

 

320,957

623,839

 

 

 

 

Administrative expenses

 

(456,368)

(579,368)

 

 

 

 

 

 

Operating (loss)/profit

3

(135,411)

44,471

 

 

 

 

Investment revenues

6

242

-

Finance costs

7

(1,345)

(657)

 

 

 

 

 

 

(Loss)/profit before taxation

 

(136,514)

43,814

 

 

 

 

Income tax expense

8

-

-

 

 

 

 

 

 

(Loss)/profit and total

 

(136,514)

43,814

comprehensive income for the year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share (in pence)

9

 

 

Basic

 

(10.94)

3.88

Diluted

 

(10.94)

3.88

 

 

 

 

Earnings per share from

 

 

 

continuing operations (in pence)

 

 

 

Basic

 

(10.94)

3.88

Diluted

 

(10.94)

3.88

 

 

 

 

The income statement has been prepared on the basis that all operations are continuing operations.

 

 

 

 

 

 

 

 

 

 

 

 

STARTUP GIANTS PLC

 

 

 

STATEMENT OF FINANCIAL POSITION

FOR THE YEAR ENDED 31 DECEMBER 2022

 

 

 

 

 

 

2022

2021

 

Notes

£

£

 

 

 

 

Non-current assets

 

 

 

Goodwill

10

12,084

17,084

Property, plant and equipment

11

1,445

2,147

 

 

 

 

 

 

 

 

13,529

19,231

 

 

 

 

 

 

Current assets

 

 

 

Trade and other receivables

12

31,859

97,122

Current tax recoverable

 

3,939

14,916

Cash and cash equivalents

 

712,389

1,098,838

 

 

 

 

 

 

 

 

748,187

1,210,876

 

 

 

 

 

 

Current liabilities

 

 

 

Trade and other payables

15

182,219

498,969

Current tax liabilities

 

6,280

16,407

Borrowings

14

5,000

5,000

 

 

 

 

 

 

 

 

193,499

520,376

 

 

 

 

 

 

Net current assets

 

554,688

690,500

 

 

 

 

 

 

Non-current liabilities

 

 

 

Borrowings

14

12,083

17,083

 

 

 

 

 

 

Net assets

 

556,134

692,648

 

 

 

 

 

 

Equity

 

 

 

Called up share capital

16

152,405

152,405

Share premium account

17

960,102

960,102

Retained earnings

 

(556,373)

(419,859)

 

 

 

 

 

 

Total equity

 

556,134

692,648

 

 

 

 

 

 

 

 

 

 

The financial statements were approved by the board of directors and authorised for issue on

28 June 2023 and are signed on its behalf by:

 

 

 

 

J Buckler

 

 

 

Director

 

 

 

 

 

 

 

Company registration number 09690364

 

 

 

 

 

 

 

STARTUP GIANTS PLC

 

 

 

 

 

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2022

 

 

 

 

 

 

 

 

Share

Share

Retained

Total

 

 

capital

premium

earnings

 

 

 

 

account

 

 

 

Notes

£

£

£

£

 

 

 

 

 

 

Balance at 1 January 2021

 

140,510

769,790

(463,673)

446,627

 

 

 

 

 

 

Year ended 31 December 2021:

 

 

 

 

 

Profit and total comprehensive income for

 

-

-

43,814

43,814

the year

 

 

 

 

 

Transactions with owners in their capacity

 

 

 

 

 

as owners:

 

 

 

 

 

Issue of share capital

16

11,895

190,312

-

202,207

 

 

 

 

 

 

 

 

 

 

Balance at 31 December 2021

 

152,405

960,102

(419,859)

692,648

 

 

 

 

 

 

 

 

 

 

Year ended 31 December 2022:

 

 

 

 

 

Loss and total comprehensive income for

 

-

-

(136,514)

(136,514)

the year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 31 December 2022

 

152,405

960,102

(556,373)

556,134

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STARTUP GIANTS PLC

 

 

 

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2022

 

 

 

 

 

 

2022

2021

 

Notes

£

£

 

 

 

 

Cash flows from operating activities

 

 

 

Cash (absorbed by)/generated from operations

21

(380,755)

238,528

 

 

 

 

Interest paid

 

(1,345)

(657)

Income taxes refunded

 

850

408

 

 

 

 

 

 

Net cash (outflow)/inflow from operating

 

 

 

activities

 

(381,250)

238,279

 

 

 

 

Investing activities

 

 

 

Purchase of property, plant and equipment

 

(199)

(2,573)

Repayment of loans

 

(242)

(12,116)

Interest received

 

242

-

 

 

 

 

 

 

Net cash used in investing activities

 

(199)

(14,689)

 

 

 

 

Financing activities

 

 

 

Proceeds from issue of shares

 

-

202,207

Repayment of bank loans

 

(5,000)

(2,917)

 

 

 

 

 

 

Net cash (used in)/generated from financing

 

(5,000)

199,290

activities

 

 

 

 

 

 

 

 

 

Net (decrease)/increase in cash and cash

 

(386,449)

422,880

equivalents

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of year

 

1,098,838

675,958

 

 

 

 

 

 

Cash and cash equivalents at end of year

 

712,389

1,098,838

 

 

 

 

 

 

 

 

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

 

 

Enquiries:

 

Startup Giants plc

 

Jeb Buckler, Chairman & CEO

jeb@startupgiants.com

+44 (0)7477 949933

 

Keith Bayley Rogers & Co. Limited

Brinsley Holman

brinsley.holman@kbrl.co.uk

+44 (0)7776 302228




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