Fiinu PLC Half-Year results for the 6 months to 30 June 2024

RNS Number : 7793E

Fiinu PLC

19 September 2024

 

19 September 2024

 

This announcement contains inside information stipulated under the UK version of the Market Abuse Regulation (EU) No. 596/2014, part of English Law under the European (Withdrawal) Act 2018, as amended. This information will be in the public domain upon publication of this announcement.

 

FIINU PLC

("Fiinu" or the "Company" or the "Group")

Half-Year results for the six months ended 30 June 2024

 

Fiinu, a fintech group and creator of the Plugin Overdraft®, announces its unaudited half-year results for the six months ended 30 June 2024.

 

Operational Update

 

·    The Company has successfully completed all its previously announced cost-cutting programmes, leading to a much-reduced loss before taxation.

·    The Plugin Overdraft platform's intellectual property, documentation and source code remain boxed in a secured data warehouse, as previously announced. The Plugin Overdraft® platform can technically access over 100 million bank accounts in the UK.

·    During the period, the Company has continued funding conversations with potential investors.

·    In addition, the Company continues to discuss providing white-labelling services to other banks and licensing Fiinu's Plugin Overdraft technology platform.

 

Financial Highlights

 

·    Loss before taxation is reduced by 95% from the same period last year to approximately £0.24m (2023: £4.41m). Cash at bank on 30 June 2024 was approximately £0.7m. Since the period end, as in the past six years, the Company has submitted a file for a research & development tax credit, for approximately £0.6m. 

·    The Board remains confident in its ability to trade as a going concern. The Board has the main shareholder support, the operating losses have been reduced, and the monthly burn rate is being managed effectively with existing liquidity.       

 

Outlook

 

·    In addition to continuing to look to secure the funding required to enable it to re-visit its application for a UK Banking Licence and potential white-labelling or licensing opportunities, the Board remains open to exploring corporate transactions with other complementary businesses in the fintech or banking arena.

·    The ideal targets should have strategic and business ethics that synergise with Fiinu's proposition, corporate culture, and values, such as improving financial inclusion through innovative use of open banking-enabled technologies and pan-European expansion ambitions.

Dr Marko Sjoblom, Fiinu CEO, commented:

 

"I am pleased to report that the Company has made significant strides towards achieving financial stability. The successful completion of our cost-cutting initiatives is a major milestone, resulting in a 95% reduction in losses compared to the same period last year. This disciplined approach to financial management has allowed us to protect our cash position and maintain sufficient liquidity to support ongoing operations, including our efforts to secure additional funding.

 

"Our Plugin Overdraft® platform, which can technically access over 100 million UK bank accounts, remains a core asset. While our intellectual property, documentation, and source code are securely stored, we continue to explore strategic opportunities for white-labelling services and licensing of this unique platform technology. These discussions are ongoing and reflect our commitment to unlocking the full value of our proprietary offerings in a manner that aligns with the market's needs and our long-term objectives.

 

"From a strategic perspective, we are maintaining conversations with potential investors to secure additional funding. At the same time, the Board is  also exploring potential acquisitions that align with our mission of improving financial inclusion through innovative technologies. We are actively looking for businesses that not only complement our existing capabilities but also share our corporate values, including a commitment to open banking-enabled technologies and a vision for pan-European growth.

 

"In conclusion, I am confident that our strategic initiatives, coupled with prudent financial management, position us well for future success. The Board remains focused on delivering value for our shareholders and stakeholders as we continue to navigate the evolving fintech landscape."

 

Key Financials

Highlighted below are the key unaudited financial highlights for the six months to 30 June 2024, compared to the six months to 30 June 2023 and the audited year ended 31 December 2023.

 

	Unaudited half year to 30 Jun 2024 £	Unaudited half year to 30 Jun 2023 £	Audited year to 31 Dec 2023 £
Revenue	-	-	-
Gross profit	-	-	-
Administrative expenses	(238,606)	(4,395,412)	(7,223,494)
Investment revenues / (cost)	-	27,851	-
Net finance (cost) / income	433	(47,924)	(28,664)
Loss before taxation	(238,173)	(4,415,486)	(7,252,158)
Income tax income	-	253,462	16,157
Loss and total comprehensive income (continuing operations)	(238,173)	(4,162,024)	(7,236,001)
Fair value adjustments	-	-	(67,109)
Impairment of investments	-	-	(1,014,421)
Total Loss and total comprehensive income	(238,173)	(4,162,024)	(8,317,531)
Earnings / (loss) per share
Basic	(0.001)	(1.75)	(3.06)
Diluted	(0.001)	(1.75)	(3.06)

 

Enquiries:
Fiinu Plc Dr Marko Sjoblom, Chief Executive Officer [e-mail]	Tel: [phone]
SPARK Advisory Partners Limited (Nomad) Mark Brady / Adam Dawes	Tel: [phone]
SP Angel Corporate Finance LLP (Broker) Matthew Johnson / Charlie Bouverat (Corporate Finance) Abigail Wayne / Rob Rees (Corporate Broking)	Tel: [phone]

 

About Fiinu

Fiinu, founded in 2017, is a fintech group that has developed the Plugin Overdraft®, which is an unbundled overdraft solution that allows customers to have an overdraft without changing their existing bank. The underlying bank Independent Overdraft® technology platform is bank agnostic, which therefore enables it to serve all other banks' customers. The Plugin Overdraft® platform can technically access over 100 million bank accounts in the UK. Open Banking allows Fiinu's Plugin Overdraft® to attach ("plugin") to the customer's existing primary bank account, no matter which bank they may use. Fiinu's vision is built around Open Banking, and it believes that it increases competition and innovation in banking.

 

For more information, please visit www.fiinuplc.com

Consolidated statement of comprehensive income

 

	Unaudited half year to 30 Jun 2024 £	Unaudited half year to 30 Jun 2023 £	Audited year to 31 Dec 2023 £
Revenue	-	-	-
Gross profit	-	-	-
Administrative expenses	(238,606)	(4,395,412)	(7,223,494)
Investment revenues / cost	-	27,851	-
Net finance income / cost	433	(47,924)	(28,664)
Loss before taxation	(238,173)	(4,415,486)	(7,252,158)
Income tax income	-	253,462	16,157
Loss and total comprehensive income (continuing operations)	(238,173)	(4,162,024)	(7,236,001)
Fair value adjustments	-	--	(67,109)
Impairment of investments	-	-	(1,014,421)
Total Loss and total comprehensive income	(238,173)	(4,162,024)	(8,317,531)
Earnings / (loss) per share
Basic	(0.001)	(1.75)	(3.06)
Diluted	(0.001)	(1.75)	(3.06)

 

 

 

Consolidated statement of financial position

 

 

Notes	30 June 2024 (unaudited) £	30 June 2023 (unaudited) £	31 Dec 2023 (audited) £
ASSETS
Non-current assets
Intangible assets	-	878,639	-
Property, plant and equipment	-	209,949	-
	-	1,088,588	-
Current assets
Trade and other receivables	64,386	429,147	236,720
Current tax recoverable	-	606,341	-
Cash and cash equivalents	691,280	4,284,783	1,310,757
	755,666	5,320,361	1,547,477
Total assets	755,666	6,408,949	1,547,477
LIABILITIES
Non-Current liabilities
Lease liabilities	-	23,707	-
	-	23,707	-
Current liabilities
Trade and other payables	144,371	1,846,203	663,940
Lease liabilities	23,707	137,381	57,776
	168,078	1,983,584	721,716
Total liabilities	168,078	2,007,291	721,716
Capital and Reserves
Called up share capital	27,474,724	27,474,724	27,474,724
Share premium	9,475,486	9,482,775	9,475,486
Own shares	(5,100)	-	(5,100)
Merger reserve	(21,120,782)	(21,120,782)	(21,120,782)
Shares to be issued	50,000	-	50,000
Retained losses	(15,286,740)	(11,435,059)	(15,048,567)
Total Equity	587,588	4,401,658	825,761
Total equity and liabilities	755,666	6,408,949	1,547,477

 

 

 

Consolidated statement of cash flows

 

 

Notes	6 months ended 30 June 2024 (unaudited) £	6 months ended 30 June 2023 (unaudited) £	12 months ended 31 Dec 2023 (audited) £
Cash flows from operating activities
Cash absorbed by operations	(585,841)	(4,177,353)	(6,647,178)
Income taxes refunded	-	-	369,036
Net cash outflow from operating activities	(585,841)	(4,177,353)	(6,278,142)
Investing activities
Purchase of property, plant and equipment	-	(8,618)	(8,618)
Interest received	2,013	27,851	46,176
Net cash generated from investing activities	2,013	19,233	37,558
Financing activities
Proceeds from issue of shares	-	1,250,000	500,000
Proceeds from borrowings	-	250,000	1,000,000
Repayment of borrowings	-	-	(750,000)
Payment of lease liabilities	(34,069)	(65,668)	(167,929)
Interest paid	(1,580)	(47,924)	(75,891)
Net cash generated from financing activities	(35,649)	1,386,408	506,180
Net increase/(decrease) in cash and cash equivalents	(619,477)	(2,771,713)	(5,734,404)
Cash at beginning of period	1,310,757	7,045,161	7,045,161
Cash at end of period	691,280	4,273,448	1,310,757

 

 

 

Consolidated statement of changes in equity Attributable to equity shareholders of the company

 

	Called up share capital   £	Share premium       £	Revaluation/  Merger reserve/ shares to be issued £	Retained earnings       £	Total         £
Balance at 31 December 2023	27,474,724	9,475,486	(21,075,882)	(15,048,567)	825,761
Period ended 30 June 2024
Loss and total comprehensive income for the period	-	-	-	(238,173)	(238,173)
Issue of share capital	-	-	-	-	-
Balance at 30 June 2024	27,474,724	9,475,486	(21,075,882)	(15,286,740)	587,588

 

NOTES TO THE FINANCIAL STATEMENTS

 

Financial information contained in this document does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006 ("the Act"). The statutory accounts for the year ended 31 December 2023 have been filed with the Registrar of Companies. The report of the auditors confirmed that the financial statements:

·    give a true and fair view of the state of the Group's and of the Parent Company's affairs as at 31 December 2023 and of the Group's loss for the period then ended;

·    have been properly prepared in accordance with UK-adopted international accounting standards and, as regards the parent company financial statements, as applied in accordance with the provisions of the Companies Act 2006; and

·    have been prepared in accordance with the requirements of the Companies Act 2006.

 

The auditors conducted the audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the "Auditor's responsibilities for the audit of the financial statements" section of our report. We are independent of the Group and the Parent Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council's ('FRC') Ethical Standard as applied to listed entities and public interest entities and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

The financial information for the six months ended 30 June 2024 and 30 June 2023 are unaudited. This announcement was approved by the Board on 17 September 2024.

1.    Reporting entity

 

Fiinu Plc (the "Company" or the "Group") is a public company limited by shares incorporated in England and Wales. The registered office is Ibex House, Baker Street, Weybridge, KT13 8AH. The consolidated financial statements of the Company as of 30 June 2024 and for the six months ended 30 June 2023 comprise the Company and its subsidiaries (together referred to as the "Group").

 

Fiinu, founded in 2017, is a fintech group that developed the Plugin Overdraft®, which is an unbundled overdraft solution that allows customers to have an overdraft without changing their existing bank. The underlying bank Independent Overdraft technology platform is bank agnostic, which therefore enables it to serve all other banks' customers. The Plugin Overdraft® platform can technically access over 100 million bank accounts in the UK. Open Banking allows Fiinu's Plugin Overdraft® to attach ("plugin") to the customer's existing primary bank account, no matter which bank they may use. Fiinu's vision is built around Open Banking, and it believes that it increases competition and innovation in banking.

 

For more information, please visit www.fiinuplc.com

 

2.    Basis of preparation

 

The consolidated financial information has been prepared in accordance with UK adopted international accounting standards. The consolidated financial statements are presented in pounds sterling, the functional currency of the Company and the presentation currency of the Group.

The interim financial information is made up to 30 June 2024. Where necessary, adjustments are made to the financial information of subsidiaries to bring the accounting policies used into line with those used by other members of the Group.

 

All intra-group transactions, balances and unrealised gains on transactions between Group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

 

Subsidiaries are consolidated in the Group's financial statements from the date that control

commences until the date that control ceases.

 

Acquisitions are accounted for using the acquisition method. the cost of an acquisition is measured at fair value at the date of exchange of the consideration. Identifiable assets and liabilities of the acquired business are recognised at their fair value at the date of acquisition. To the extent that the cost of an acquisition exceeds the fair value of the net assets acquired, the difference is recorded as goodwill. Where the fair value of the net assets acquired exceeds the cost of an acquisition, the difference is recorded in profit and loss.

 

The Group has chosen not to adopt IAS 34 "Interim Financial Statements" in preparing the interim financial information.

 

3.    Significant accounting policies

The accounting policies set out in detail in note 2 of the Group's consolidated financial statements to 31 December 2023 have been applied consistently to these unaudited financial statements to 30 June 2024. There are no new standards or amendments to standards which are material to the accounts for the half year ended 30 June 2024.

 

4.             Events in the six months ended 30 June 2024 Business Highlights: Operational Update

·      The Company has successfully completed all its previously announced cost-cutting programmes, leading to a much-reduced loss before taxation.

·      The Plugin Overdraft platform's intellectual property, documentation and source code remain boxed in a secured data warehouse, as previously announced. The Plugin Overdraft platform can technically access over 100 million bank accounts in the UK.

·      During the period, the Company has continued funding conversations with potential investors.

·      In addition, the Company continues to discuss providing white-labelling services to other banks and licensing Fiinu's Plugin Overdraft® technology platform.

 

Financial Highlights

 

·    Loss before taxation is reduced by 95% from the same period last year to approximately £0.24m (2023: £4.41m). Cash at bank on 30 June 2024 was approximately £0.7m. Since the period end, as in the past six years, the Company has applied for a research & development tax credit, which equates to approximately £0.6m. 

·    The Board remains confident in its ability to trade as a going concern. The Board has the main shareholder support, the operating losses have been reduced, and the monthly burn rate is being managed effectively with existing liquidity.      

 

Outlook

 

·    In addition to continuing to look to secure the funding required to enable it to re-visit its application for a UK Banking Licence and potential white-labelling or licensing opportunities, the Board remains open to exploring corporate actions with other complementary businesses in the fintech or banking arena.

·    The ideal businesses should have strategic and business ethics that synergise with Fiinu's proposition, corporate culture, and values, such as improving financial inclusion through innovative use of open banking-enabled technologies and pan-European expansion ambitions.

 

5.    Share capital

 

Allotted, issued and fully paid:

 

	Number of shares	Nominal value
		£
Ordinary shares with nominal value of £0.10 per share as at:
31 December 2023	274,747,246	27,474,725
Issued in the half year
30 June 2024	274,747,246	27,474,725

 

There are no restrictions on the transfer of shares in Fiinu Plc. All shares carry equal voting rights.

 

FORWARD LOOKING STATEMENTS

This document contains certain forward-looking statements which reflect the knowledge and information available to the Company during the preparation and up to the publication of this document. By their very nature, these statements depend upon circumstances and relate to events that may occur in the future thereby involving a degree of uncertainty. Although the Group believes that the expectations reflected in these statements are reasonable, it can give no assurance that these expectations will prove to have been correct. Given that these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward- looking statements.

 

The Group undertakes no obligation to update any forward-looking statements whether because of new information, future events or otherwise.

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