TIDMASLR
RNS Number : 1360X
Asimilar Group PLC
24 April 2023
The information contained in this announcement is deemed by the
Company to constitute inside information as stipulated under
Article 7 of EU Regulation 596/2014 (which forms part of domestic
UK law pursuant to the European Union (Withdrawal) Act 2018). Upon
publication of the announcement via a regulatory information
service, this information is considered to be in the public
domain.
24 April 2023
Asimilar Group plc
("Asimilar" or the "Company")
Final results for the year ended 30 September 2022
and Lifting of Suspension in Trading
The Board of Asimilar Group plc (AIM: ASLR), the investment
company focused on technology opportunities in the fields of big
data, machine learning, telematics and the Internet of Things,
announces the Group's audited results for the year ended 30
September 2022.
The 2022 Annual Report and Accounts ("Annual Report") have now
been published and are available on the Company's website at
www.asimilargroup.com . The Annual Report will be posted to
shareholders shortly, and copies will be available from the Company
registered office at 4 More London Riverside, London, SE1 2AU.
As a result of the publication of the Annual Report, trading in
the Company's ordinary shares on AIM and AQSE will be restored with
effect from 7.30 a.m. today.
-Ends-
Contact details:
Asimilar Group plc
John Taylor asimilargroupplc@gmail.com
Cairn Financial Advisers LLP (AIM
Nominated Adviser)
Sandy Jamieson, Liam Murray Tel: +44 20 7213 0880
Peterhouse Capital Limited (Joint
Broker)
Duncan Vasey / Lucy Williams Tel: + 44 20 7220 9797
Oberon Capital (Aquis Corporate
Adviser and Joint Broker)
Chris Crawford Tel + 44 20 3179 5300
Introduction
The year under review, and the period post year-end, have
represented a particularly challenging time for the Company and a
number of its investee companies. Global events and the
macro-economic environment have significantly affected the
performance of the portfolio, restricting the funding available to
certain of these technology assets on appropriate terms to allow
them to stabilise and grow.
A summary of the investment portfolio is provided below. Whilst
the downwardly revised valuation of Veative Group Holdings plc
(previously Dev Clever Holdings plc) has been the material driver
of the Company's financial performance and position, the majority
of the portfolio companies were valued lower at the year-end than
they were at the start of the period.
Proposed cancellation from admission to AIM
Despite material uncertainties disclosed later in the going
concern note the Board considers that the Company has sufficient
liquid assets to meet its operating costs for the next reporting
year. In the absence of any pending liquidity events in respect of
its unquoted holdings, or any further fundraising, the Company does
not currently have the capacity to pursue new investment
opportunities. During the year, and post year-end, any additional
investment has been limited to relatively low levels of follow-on
support of existing portfolio companies, albeit the Board has
continued to evaluate new opportunities and consider how these
would be funded.
It is neither sustainable, nor beneficial, for the Company to be
in a position where it needs to liquidate certain holdings in order
to meet costs. The Board is actively reviewing its current cost
base, as well as its options for the future. Certain permanent cost
savings have already been implemented, and the Directors have
deferred their salaries since December 2022. Further cost savings
are planned.
Given the Company is currently admitted to trading on both AIM
and AQSE, the Board propose to put a special resolution to the
forthcoming Annual General Meeting ("AGM") which will seek
shareholder approval to cancel its admission to trading on AIM. The
Board does not consider that any potential benefits to the Company
or shareholders from retaining the AIM admission are sufficient to
justify the associated costs. Further details will be provided in
the circular convening the AGM.
Options for the future
In the event that shareholders approve the AIM cancellation, the
Board currently intends that the Company should retain its
admission to AQSE in the near term, thereby maintaining liquidity
in respect of its own shares. The Board will consult further with
its shareholders in respect of its future options. These may
include a recapitalisation in order to pursue new investment
opportunities and/or support the existing portfolio, and to cover
working capital requirements in order to remain listed in the
longer term. It may also consider the commencement of an orderly
realisation process and return of proceeds to shareholders.
Financial review
Total comprehensive loss for the year was GBP35,271,732 (2021:
income GBP26,705,635). Unrealised losses on investments were
GBP36,630,063 (2021: gain GBP25,687,510) and realised gains on
investments were GBP226,976 (2021 gains: GBP2,202,000). Cash at the
bank at the year-end was GBP7,179 (2021: GBP600,090). As noted
above, however, the Company is able to continue operations through
the phased liquidation of its listed asset base.
As at 30 September 2022, total assets were GBP6,727,334 (2021:
GBP43,735,675) and the net fair value of investments held was
GBP6,566,405 (2021: GBP43,040,104). Total net assets were
GBP6,452,184 (2021: GBP41,474,640) which represents 5.53 (2021:
35.94) pence per share.
Investment Portfolio
Asimilar has developed a portfolio approach to its investments.
In order to expose our investors to the potential returns that we
believe they demand, such investments should be regarded as being
at the highest end of the risk spectrum. A brief summary of our
investments and developments within them is outlined below:
Magic Media Works Ltd ("Magic Media")
Magic Media is a music entertainment technology business. The
company's mission is to bring families together through shared
music entertainment experiences via its app "ROXi".
At launch in 2017 Magic Media delivered the ROXi experience to
consumers was by way of a dedicated set-top box, which plugged into
a TV.
However, the rapid adoption of Smart TVs and streaming apps has
allowed the business to transform itself into a free multi-platform
Smart TV App, offering ad-funded free and subscription-funded
premium editions of the ROXi experience.
The free ROXi TV App, which was launched in November 2021,
offers a full catalogue of 90 million music videos covering all
genres and decades, combining all the original music videos with
tens of millions of virtual music videos which are exclusive to
ROXi. ROXi also offers interactive music games and Karaoke and a
Netflix-esque rail based user interface.
The ROXi experience is available on an increasingly large number
of Smart TV platforms, including Sky Q, Fire TV, Google TV, Android
TV and Samsung. Other platforms and territories are planned.
The company has global rights agreements with the major labels
(Universal Music Group, Sony Music Group, Warner Music Group) and
major independents including Merlin Music.
In June 2022 Magic Media launched a fund raise to raise up to
GBP5 million at 30 pence per share with an option to invest via
loan notes which would pay interest at 5% and have attached a
warrant with rights to subscribe for shares in Magic Media at 30p.
This amount has been extended by a further GBP2 million to a total
of GBP7 million. Asimilar invested GBP100,000 in loan notes and
associated warrants.
On 19 December 2022 ROXi announced a partnership with Simon
Cowell, creator of X-Factor and Britain's Got Talent, to curate
exclusive music and video content available on the ROXi App.
In December 2022, ROXi also announced a partnership with
Samsung, allowing ROXi to be enjoyed on Samsung TVs.
At 30 September 2022, Asimilar held 1,646,682 shares which
represents 5.05% (2021: 6.13%) of the issued share capital.
Asimilar also holds, before any adjustment to fair value,
GBP1,591,768 (2021: GBP1,491,768) in convertible loan notes,
1,262,050 (2021: 928,717) warrants and has options over a further
204,811 (2021: 95,000) ordinary shares in Magic Media. The carrying
value of this investment was GBP1,732,509 at 30 September 2022
(2021: GBP3,352,295). The main reason for the decline in the
carrying value is the fundraise at 30p which is a significant
discount to the previous round and an indication that there is need
for working capital.
Veative Group Holdings Plc (previously Dev Clever Holdings Plc)
("Veative")
Veative is a software and technology group specialising in the
use of lightweight integrations of cloud-based gamification and VR
technologies to deliver rich customer engagement experiences across
both the commercial and education sectors. In January 2019, Veative
listed on the Standard List of the London Stock Exchange.
On 24 December 2021, Veative announced that trading in its
ordinary shares was to be suspended pending the approval by the FCA
of the acquisition of Veative Labs Pte Ltd (Singapore). On 19 July
2022, the company completed the transaction with the issue of 225
million consideration shares.
At 30 September 2022, Veative's shares remained suspended and,
on 16 December 2022, the company announced its intention to delist
and change its name.
The majority of the interest in Veative is held via Asimilar's
wholly owned subsidiary, Asimilar Investments Limited ("AIL"),
based in Jersey. At 30 September 2022, AIL held 70,000,000 ordinary
shares in Veative representing approximately 8.4% (2021: 12.2%) of
Veative's issued share capital. The carrying value of this
investment was GBP1,890,000 (2021: GBP26,950,000). Asimilar Group
Plc also held an additional 2,300,000 (2021: 2,300,000) shares at a
carrying value of GBP62,100 (2021: GBP885,500).
At year end, AIL held a warrant to subscribe for 35 million new
ordinary shares in Veative at 25 pence per Veative share. This
warrant expired on 22 March 2023. The carrying value of the
warrants was GBPnil (2021: GBP5,670,000).
There has been a significant decline in the value of this
investment due to Veatives's prolonged suspension from the Standard
List of the LSE as it sought to have its prospectus approved and
subsequent delisting. Given that the Company does not have full
visibility of Veative's ongoing process of raising funds as a
delisted company, a considerable downward revaluation has been
taken due to uncertainty inherent in the fundraising outcome and
further discounts have been applied owing to the illiquidity of
Veative's shares at the current time.
Simplestream Limited ("Simplestream")
Simplestream is an award winning provider of best in class, next
generation TV solutions to some of the biggest players in the
broadcast, sports and media industry. Clients include QVC, UKTV,
A&E Networks, AMC Networks, Channel 4, Narrative Entertainment
and BFBS amongst others.
New customers taken on during the year were TVL in Norway, PBS
UK, Copa90 and Talk TV.
With the TV landscape changing in terms of delivery,
Simplestream's cloud-based Media Manager and App Platform provides
broadcasters and rights owners with an end-to-end technology
services eco-system, with a full range of multi-platform TV and
video distribution products including low latency online simulcasts
of TV channels, real-time sports highlights clipping, broadcaster
catch-up services, platform syndication and subscriber management
services.
Simplestream's App Platform also provides multi-channel and
multi-territory front-end templated applications for a complete
range of connected devices including mobiles, tablets, connected
TVs and fast-growing over the top (OTT) platforms such as Amazon
Fire TV, Apple TV and Roku. In the UK Simplestream's "HBBTV"
solution is used by leading broadcasters to power "catchup"
services on Freeview and YouView.
Simplestream currently delivers services across Europe, the US
and Australia, with further international expansion planned for
2023-24.
At 30 September 2022 Asimilar held 9,943 (2021: 9,943) A shares
in Simplestream, which represents 6.71% (2021: 6.71%) on a fully
diluted basis and benefits from a one-time non-participatory
liquidation preference together with a convertible loan note of
GBP21,000. The carrying value of this investment at 30 September
2022 is GBP840,174 (2021: GBP856,212).
Sparkledun Limited ("Sparkeldun")
Sparkledun is a private company which, through its trading
subsidiary, Fast to Fibre Limited ("Fast to Fibre"), has rights to
exploit a patented process for the extraction of the inner core of
telecoms and power cables, allowing the insertion of fibre optic
without the need for excavation or other disruptive techniques.
The process, particularly in urban areas, offers significant
advantages - economically, technologically and environmentally. It
reduces the need for costly, disruptive and time-consuming civil
engineering works and cable pulling. It also allows for the use of
existing cable sheaths as ducts for new cables where no alternative
is available.
Fast to Fibre has successfully completed several trials in a
variety of geographical locations and complex situations and is now
progressing a number of major commercial opportunities in the UK,
Europe, North America and India.
On 29 April 2022, the company completed a fundraise of GBP1.3
million at a share price of GBP59.45.
At 30 September 2022 Asimilar held 8,307 (2021: 8,307) ordinary
shares of GBP1.00 each in the issued share capital of Sparkeldun,
which represents 4.2% (2021: 4.8%) of its issued share capital. The
carrying value of this investment was GBP493,851 at 30 September
2022 (2021: GBP493,851).
Zeelo Limited ("Zeelo")
Zeelo's ambition is to build the world's leading smart mobility
platform for organisations, enabling access to safe and sustainable
transportation for everyday journeys. It seeks to use technology
and data to provide flexible and cost-efficient transportation
programmes in public transit deserts. This includes the smart
provision and procurement of shared transport for businesses and
providing employees with a safer commute to work and in education
getting students to schools and colleges safely and competitively.
It also gives transport operators access to new business via a
digitised service.
In terms of both revenue and the number of journeys taken via
the platform, Zeelo continues to grow rapidly and in April 2022 the
company received a takeover offer for $100 million from a US SPAC.
Unfortunately the SPAC was unable to complete on its offer. The
company also subdivided its share capital by 10,000. As a result
Asimilar now holds 1,220,000 A shares in Zeelo.
In October 2022, the company launched a fundraise at a valuation
of GBP50 million. The first phase of GBP5 million was completed by
the end of January 2023.
The carrying value of this investment at the year-end was
GBP439,298 (2021: GBP301,850).
Audioboom Group plc ("Audioboom")
Audioboom is a global leader in podcasting with more than 130
million downloads each month from 34 million unique listeners
around the world. Audioboom was ranked as the fifth largest podcast
publisher in the US by Triton Digital in March 2023.
Audioboom's ad-tech and monetization platform underpins a
scalable content business that provides commercial services for a
premium network of 250 top tier podcasts.
For the years ended 31 December 2022 the company reported
revenues of $74.9 million, up 24% from $60.3 million in 2021, and
adjusted EBITDA of $3.6 million, up by 15% from $3.1 million in
2021.
As at 30 September 2022 Asimilar held 85,200 (2021: 155,000)
shares in Audioboom which represents 0.52% (2021: 0.99%) of the
issued share capital. At year end the investment was valued at
GBP421,740 (2021: GBP1,575,920).
All Active Asset Capital Plc ("AAA")
Asimilar holds 24 million shares in AAA as a result of the
Company assigning its rights to subscribe into a Belgian AI based
technology platform, Sentiance NV ("Sentiance"). This represents
some 0.01% of AAA's issued share capital. The assignment was
originally made to MESH Holdings Plc ("MESH") which issued 24
million shares to Asimilar credited as fully paid. MESH was
subsequently acquired by AAA through a Court approved Scheme of
Arrangement on 29 November 2021, on the basis of one new AAA share
for one MESH share. The original assignment was announced by
Asimilar on 3 August 2020.
AAA's strategy is to invest in opportunities in the global
technology, software and AI space.
As result of its acquisition of MESH, AAA now holds
approximately 25.3% of Sentiance, an emerging and leading
organisation within behavioural and ethical artificial intelligence
and machine learning with its "Motion Intelligence" and
"Behavioural Change Platform" technologies.
AAA also holds an investment in AAQUA B.V. a company registered
in Netherlands with operating subsidiaries in Singapore, Belgium
and Canada. AAQUA's ambition was to develop a global social
experience hub intended to curate original content. In August 2022
AAQUA was named in a worldwide freezing order on the assets of its
founder and shareholder Robert Bonnier. Since then the company has
filed for bankruptcy protection in Singapore.
In December 2022 a new board was appointed to carry out a
strategic review of the company's existing investment portfolio. On
11 April 2023 the board announced that it cannot currently value
its 36% holding in AAQUA. However, Sentiance is showing strong
sales growth whilst requiring additional working capital.
As a result, Asimilar's holding in AAA has been valued based
solely on its 25.3% holding in Sentiance.
At year end, the holding of 24 million shares in AAA was valued
at GBP240,000 (2021: GBP984,000). The Board of Asimilar conducted
detailed due diligence on Sentiance in 2021 whilst it held the
right to subscribe into it and believes that considerable value can
be created in this exciting business.
Gfinity plc ("Gfinity")
Gfinity is a leading esports solutions provider listed on AIM.
It focuses on designing, developing and delivering esports
solutions for e-games publishers, rights holders and brands. It has
contracts and partnership arrangements with EA Games, Microsoft,
FIFA, Formula 1 and Indycar.
Following a number of acquisitions during 2020 and 2021 the
company has now evolved its business model to reflect the rapidly
developing gaming market focusing on three distinct areas:
- Gfinity Digital Media group ("GDM") is made up of 8 sites that
reach more than 16 million unique active users and deliver 75
million impressions per month.
- Gfinity Engagement Platform ("GEP") is a fully configurable
white label solution designed to maximise community engagement
through competitive play.
- Joint Venture Partnerships, such as Global Racing Series
("GRS"). This allows the company to benefit from co- owned ideas
and create products such as GRS with Abu Dhabi Motorsports
Management.
At 30 September 2022 Asimilar held 8,148,954 (2021: 8,148,954)
shares in Gfinity which represent 0.05% (2021: 0.05%) of the issued
share capital. The carrying value of this investment at 30
September 2022 is GBP81,490 (2021: GBP224,463).
Low 6 Limited ("Low6")
Low6 builds award winning Free-to-Play (F2P) games for sports
franchises, teams, leagues, sportsbooks, influencers and media
organisations. Described as "the most exciting acquisition platform
for rights holders" by EGR, the online gaming industry's leading
information and networking group, Low6 works with some of the
biggest global sports brands.
Low6 has a multi award winning proprietary tech stack and in May
2022 moved from pre-revenue to revenue generating by offering their
F2P gaming technology to the iGaming market.
In October 2022 the company completed a fund raise of GBP2
million at a share price of GBP7.20 per share.
Asimilar holds 6,612 shares which represents 0.28% (2021: 1.1%)
with a carrying value of GBP47,606 (2021: GBP119,993) at year
end.
SeeQuestor Limited ("SeeQuestor")
SeeQuestor brings together leaders in cyber security and
computer vision to deliver an Artificial Intelligence ("AI") tool
to comb through some of the estimated 1.5 trillion hours of CCTV
footage produced per year, harnessing what it believes to be world
leading AI technology and affordable supercomputing to turn
terabytes of video into actionable intelligence.
SeeQuestor has two main products available: SeeQuestor
'Post-Event' which allows teams to analyse archives of video
footage to find vehicles or persons of interest, helping to solve
investigations in a fraction of the time that would otherwise be
needed; and SeeQuestor 'iCCTV' which monitors surveillance cameras
in real-time. Use cases range from homeland security to smart
cities, airports, industrial and mining operations.
The SeeQuestor 'Post-Event' product has been used successfully
to solve crimes by 20 police forces in the UK and overseas. Having
successfully completed a number of pilots in the field through
2019, SeeQuestor 'iCCTV' is now being deployed at scale to secure
sensitive events and sites in several countries.
0n 31 December 2021 AIL exercised its option and acquired 33,784
shares at GBP10 each, bringing its total holding to 67,568
shares.
In July 2022 SeeQuestor launched an internal fundraising round
at GBP10 per share to help with short term cash needs while it
progressed its trials with customers in the Far and Middle East.
Asimilar subscribed for 10,000 of these shares. The company also
implemented cost reduction plans to preserve cash.
During August 2022 the company also started initial discussions
with a potential US acquirer. The plan was to complete the deal by
the end of November 2022 so that the enlarged company would be in a
position to benefit from the pipeline of orders that would follow
after completion of the trials.
A formal term sheet was received on 14 November 2022 valuing the
business at a premium to the last funding round. However while
final negotiations were being concluded there was a delay in
customer receipts relating to the trials resulting in a cash
shortfall. The potential buyer took the opportunity to reduce their
offer price and structure. The final offer that was accepted by the
board was for the sale of the assets and IP of the company for cash
and a conditional payment to the shareholders in January 2024 if
certain earn out conditions are achieved by end of December
2023.
If the earn out conditions were to be met then Asimilar and AIL
between them could receive around $270,000 of shares in the
acquiring company, however the board of Asimilar does not have a
high degree of confidence that these earn out conditions will be
met.
The holding of SeeQuestor shares totalled 124,586 (2021:80,802)
as at 30 September 2022, representing 9.0% (2021:7.08%) of the
issued share capital of SeeQuestor, and the carrying value of the
investment was GBPnil (2021: GBP970,138).
Share issues
During the year Asimilar issued new shares as a result of the
exercise of various warrants as follows:
- 573,333 5p warrants were exercised raising funds of GBP28,667
- 3,150,000 0.01p warrants were exercised raising funds of GBP315
- 2,000,000 5p warrants were exercised on a cashless exercise
basis, as per the terms of the warrant, resulting in 1,090,849
shares being issued at par and raising GBP109
No other shares or warrants were issued during the year.
Admission to AQSE Growth Market
On 4 April 2022 Asimilar shares were admitted to trading on the
Access Segment of the AQSE Growth Market. At the same time, the
Company appointed Station 12 Limited as its Alternative Investment
Fund Manager (AIFM).
John Taylor
Chairman
Date: 21 April 2023
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARED 30 SEPTEMBER 2022
2022 2021
Notes GBP GBP
Revenue 5 14,000 14,000
Realised gains on investment disposals 226,976 2,202,000
Administrative expenses (735,906) (800,536)
Gains / (loss) from remeasurement of derivative
financial liabilities 16 1,853,215 (459,900)
Sundry income - 43,414
Remeasurement to fair value of investments
in financial assets 12,13 (36,630,063) 25,687,510
------------------ ------------------
OPERATING (LOSS) / PROFIT BEFORE FINANCING
ACTIVITIES (35,271,778) 26,686,488
Finance income 6 46 20,377
Finance cost 6 - (1,229)
------------------ ------------------
(LOSS) / PROFIT BEFORE TAX 7 (35,71,732) 26,705,635
Tax charge 10 - -
------------------ ------------------
(LOSS) / PROFIT AFTER TAX (35,271,732) 26,705,635
------------------ ------------------
Earnings/(loss) per share (pence per share)
Basic earnings 11 (28.85)p 23.29p
========= =========
Diluted earnings 11 (28.85)p 19.23p
========= =========
CONSOLIDATED STATEMENT OF FINANCIAL POSITION FOR THE YEARED 30
SEPTEMBER 2022
2022 2021
Notes GBP GBP
ASSETS
Non-current assets
Investments in financial
assets held at fair value 12 5,761,864 36,312,423
-------------------- --------------------
5,761,864 36,312,423
-------------------- --------------------
Current assets
Investments in financial
assets held at fair value 12 804,541 6,727,681
Trade and other receivables 14 153,750 95,481
Cash and cash equivalents 7,179 600,090
-------------------- --------------------
965,470 7,423,252
-------------------- --------------------
TOTAL ASSETS 6,727,334 43,735,675
========== ==========
EQUITY AND LIABILITIES
Current liabilities
Trade and other payables 15 219,150 131,635
Derivative financial liabilities
held at fair value 16 56,000 2,129,400
-------------------- --------------------
Total liabilities 275,150 2,261,035
-------------------- --------------------
Equity
Share capital 17 5,215,190 5,214,709
Share premium account 17 18,339,562 17,932,954
Merger relief reserve 17 279,900 279,900
Warrant reserve 17 - 157,813
Retained earnings 17 (17,382,468) 17,889,264
--------------------- ---------------------
Total equity 6,452,184 41,474,640
--------------------- ---------------------
TOTAL EQUITY AND LIABILITIES 6,727,334 43,735,675
========== ==========
The financial statements were approved and authorised for issue
by the board of directors on 21 April 2023 and were signed on its
behalf by
John Taylor
Chairman
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEARED 30
SEPTEMBER 2022
Share Merger
Share Premium Relief Retained Warrant
Capital Account Reserve Earnings Reserve Total
GBP GBP GBP GBP GBP
At 1 October
2020 5,213,277 14,327,636 279,900 (9,387,371) 157,813 10,591,255
Total
comprehensive
income for
the
year - - - 26,705,635 - 26,705,635
Share based
payments - - - 571,000 - 571,000
Transactions
with
owners
Shares issued 1,432 3,605,318 - - - 3,606,750
----------------- ------------------ ------------------ -------------------- -------------------- ------------------
At 1 October
2021 5,214,709 17,932,954 279,900 17,889,264 157,813 41,474,640
Total
comprehensive
loss for the
year - - - (35,271,732) - (35,271,732)
Warrant
reserve - 157,813 - - (157,813) -
Transactions
with
owners
Shares issued 481 248,795 - - - 249,276
----------------- ------------------ ------------------- -------------------- -------------------- ------------------
At 30
September
2022 5,215,190 18,339,562 279,900 (17,382,468) - 6,452,184
========= ========== ========== =========== ========== =========
Share capital
Represents the par value of shares in issue.
Share premium
Represents amounts subscribed for share capital in excess of its
nominal value, net of directly attributable issue costs.
Merger relief reserve
Represents premium on shares issued in connection with the
acquisition of Intrinsic Capital Jersey Limited, recognised in
accordance with S162 of the Companies Act 2006.
Retained earnings
Represents accumulated losses to date.
Warrant reserve
Represents the fair value of placing warrants issued.
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEARED 30 SEPTEMBER
2022
2022 2021
GBP GBP
Operating activities
(Loss) / Profit for the year (35,271,732) 26,705,636
Adjustments for:
(Increase) / decrease in trade
and other receivables (58,269) 86,761
Decrease / (increase) in trade
and other payables 87,515 (65,500)
Net finance income (46) (19,148)
Unrealised losses / (gain) on
remeasurement to fair value 34,776,848 (25,687,510)
Gain on sale of investments (226,976) (2,202,000)
Share based payments - 571,000
------------------- -------------------
Net cash used in activities (692,660) (610,761)
------------------- -------------------
Investing activities
Payments to acquire investments (644,230) (9,570,755)
Proceeds from sale of investments 714,843 3,674,463
Loans repaid - 2,771,426
Finance income received 46 19,148
------------------- -------------------
Net cash generated / (used) in investing
activities 70,659 (3,105,718)
------------------- -------------------
Financing activities
Net proceeds from issue of shares 29,090 3,606,750
------------------ ------------------
Net cash generated from financing
activities 29,090 3,606,750
------------------- -------------------
Net decrease in cash and cash
equivalents (592,911) (109,729)
Cash and cash equivalents at
the start of the year 600,090 709,819
------------------ ------------------
Cash and cash equivalents at
the end of the year 7,179 600,090
------------------ ------------------
Cash and cash equivalents consist
of:
Cash and cash equivalents 7,179 600,090
========= =========
The Group had no debt in either period, therefore no net debt
reconciliation has been presented.
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARED 30 SEPTEMBER 2022
1. GENERAL INFORMATION
Asimilar Group Plc is a public limited company which is admitted
to trading on the Alternative Investment Market (AIM) and the Aquis
Exchange (AQSE) and is incorporated and domiciled in the UK. The
address of its registered office is 4 More London Riverside,
London, SE1 2AU.
2. ACCOUNTING POLICIES
2.1 Basis of preparation
The consolidated financial statements have been prepared in
accordance with International Accounting Standards and
International Financial Reporting Standards (collectively "IFRS")
and the requirements of the Companies Act 2006 applicable to
companies reporting under IFRS.
The consolidated financial statements have been prepared under
the historical cost convention, as modified by the revaluation of
financial assets and financial liabilities (including derivative
instruments) at fair value through profit or loss.
The preparation of financial statements requires the use of
certain critical accounting estimates. It also requires management
to exercise its judgement in the process of applying the Group's
accounting policies. The areas involving a higher degree of
judgement or complexity, or areas where assumptions and estimates
are significant to the consolidated financial statements, are
disclosed in note 3.
2.2 Changes in accounting policies and disclosures
(a) New standards, amendments and interpretations adopted by the
Group
During the year ended 30 September 2022, the group has not
adopted any new IFRS, IAS or amendments issued by the IASB and
interpretations by the IFRS Interpretations Committee which have
had a material impact on the group's financial statements.
(b) New standards, amendments and interpretations not yet
adopted
A number of new standards and amendments to standards and
interpretations are effective for annual periods beginning after 1
January 2022 and have not been applied in preparing these
consolidated financial statements. None of these are expected to
have a significant effect on the consolidated financial statements
of the Group. There are no other IFRSs or IFRIC interpretations
that are not yet effective that would be expected to have a
material impact on the Group.
2.3 Going Concern
The Group had net assets of GBP6,452,184 as at 30 September 2022
(2021: net assets GBP41,474,640) and generated loss after tax of
GBP35,271,732 (2021: income GBP26,705,635) in the reporting period.
Net cash absorbed during the year was GBP592,911 (2021:
GBP109,729).
The financial statements have been prepared on the going concern
basis, which assumes that the Group will have sufficient funds to
continue in operational existence for at least twelve months from
the date of approval of the financial statements.
Whilst the Group continues to hold relatively small cash
balances, it holds a number of liquid, quoted investments which it
is able to realise as required to meet operational costs and other
outgoings. The Board's cash flow forecasts for the Group to April
2024, take into account a number of scenarios including due
consideration of the cost saving measures referred to in the
Chairman's Statement (including, but not limited to, those
associated with the proposed cancellation of the Company's
admission to trading on AIM) and, taking account of reasonably
possible adverse changes in the performance of the investment
portfolio, indicate that the Group will have sufficient access to
cash to continue in operational existence for the next 12 months
from the date of approval of the financial statements.
The assumptions include the ability to liquidate sufficient
investment holdings and a sensitivity testing of a fall in value of
the quoted investments by 30%. Should the value of these
investments fall by more than 30% the Group would have no choice
but to seek external funding, which is not certain to be secured,
and further cost cutting measures may not be able to mitigate the
impact of these investmnets losing value.
The Company could also seek to realise some of its substantial
private investments. However, there is a a risk that such forced
disposal could be at a loss.
Considering the above, the Directors are confident the Group
remains a going concern and that, should it be required, the Group
would be able to raise funds.
Whilst material uncertainties relating to going concern do exist
and may cast significant doubt over the Group's ability to continue
as a going concern, at the date of signing these accounts, the
Directors have concluded that the basis of preparation is
appropriate.
2.4 Consolidation
Subsidiaries
Subsidiaries are all entities (including structured entities)
over which the Group has control. The Group controls an entity when
it is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those
returns through its power over the entity. Subsidiaries are fully
consolidated from the date on which control is transferred to the
Group. They are deconsolidated from the date that control
ceases.
The Group considers whether acquisitions meet the criteria of a
business combination in determining whether to apply the criteria
of IFRS 3: Business Combinations. Where such criteria are not met
(as in the case of the acquisition of Asimilar Investments Limited
during the year ended 30 September 2020), the consideration payable
and assets and liabilities are ascribed a fair value in accordance
with IFRS 9: Financial Instruments and IFRS 13: Fair Value
Measurement. The reasons and difference arising on such a
transaction are considered and recognised in accordance with the
relevant standard. Differences in fair value arising from an
exchange of financial instruments conducted on an arm's length
basis are recognised as 'Day One gains or losses' in the income
statement.
Acquisition-related costs are recognised as part of the carrying
value of the relevant asset's initially recognised cost.
Contingent consideration is classified either as equity or as a
financial liability. Amounts classified as a financial liability
are subsequently remeasured to fair value, with changes in fair
value recognised in profit or loss.
Inter-company transactions, balances and unrealised gains on
transactions between Group companies are eliminated. Unrealised
losses are also eliminated. When necessary, amounts reported by
subsidiaries have been adjusted to conform with the Group's
accounting policies.
The Group also considered if IFRS10 exception to consolidation
of investment entity would be applicable. Under the standard an
investment entity that has a subsidiary that is also an investment
entity, then the subsidiary should be carried at fair value.
Based on the definition of an investment entity and the guidance
on the characteristics of an investment entity, the Board has
concluded that whilst Asimilar Group Plc is an investment entity,
its subsidiary Asimilar Investments Limited does not satisfy the
characteristics of an investment entity, specifically paragraph
B85I. Therefore the Asimilar Investments Limited is consolidated on
the basis it is considered a service entity with in the Group.
2.5 Foreign Currency Translation
(a) Functional and Presentation Currency
Items included in the financial statements of each of the
Group's entities are measured using the currency of the primary
economic environment in which the entity operates ("functional
currency").
The consolidated financial statements are presented in Pounds
Sterling (GBP), which is the Company's functional and the Group's
presentation currency.
(b) Transactions and Balances
Foreign currency transactions are translated into the functional
currency using the exchange rates prevailing at the dates of the
transactions or valuation where items are re-measured. Foreign
exchange gains and losses resulting from the settlement of such
transactions and from the translation at year-end exchange rates of
monetary assets and liabilities denominated in foreign currencies
are recognised in the income statement, except when deferred in
other comprehensive income as qualifying cash flow hedges and
qualifying net investment hedges. Foreign exchange gains and losses
that relate to borrowings and cash and cash equivalents are
presented in the income statement within 'Finance income or costs'.
All other foreign exchange gains and losses are presented in the
income statement within 'Finance costs'.
Translation differences on non-monetary financial assets and
liabilities such as equities held at fair value through profit or
loss are recognised in profit or loss as part of the fair value
gain or loss.
2.6 Revenue
Revenue is recognised when revenue and associated costs can be
measured reliably and future economic benefits are probable.
Revenue is measured at fair value of consideration received or
receivable for services provided in the normal course of business,
net of discounts, VAT and other sales related taxes.
The Company only has one class of business, investment holdings
and management, and therefore no segmental information has been
presented.
2.7 Interest income
Interest income is accrued on a time apportioned basis, by
reference to the principal outstanding and at the effective
interest rate applicable.
2.8 Taxation
The tax expense represents the sum of the current tax expense
and deferred tax expense.
The tax currently payable is based on taxable profit for the
year. Taxable profit differs from accounting profit as reported in
the Statement of Comprehensive Income because it excludes items of
income or expense that are taxable or deductible in other years and
further excludes items that are never taxable or deductible. The
Group's liability to current tax is measured using tax rates that
have been enacted or substantively enacted by the reporting
date.
Deferred tax is the tax expected to be payable or recoverable on
differences between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax bases used in
the computation of taxable profit and is accounted for using the
balance sheet liability method. Deferred tax liabilities are
generally recognised for all taxable temporary differences and
deferred tax assets are recognised to the extent that it is
probable that future taxable profits will be available against
which deductible temporary differences can be utilised.
Such assets and liabilities are not recognised if the temporary
difference arises from goodwill or if the initial liabilities in a
transaction affect either the taxable profit or the accounting
profit.
The carrying amount of deferred tax assets is reviewed at each
reporting date and reduced to the extent that it is no longer
probable that sufficient future taxable profits will be available
to allow all or part of the asset to be recovered.
Deferred tax is calculated at the rates that are expected to
apply in the period when the liability is settled or the asset is
realised. Deferred tax is charged or credited in the income
statement, except when it relates to items charged or credited
directly to equity, in which case the deferred tax is also dealt
with in equity.
2.9 Financial assets
Classification
The Group classifies its financial assets in the following
categories: at amortised cost including trade receivables and other
financial assets, at amortised cost and at fair value through
profit or loss. The classification depends on the purpose for which
the financial assets were acquired. Management determines the
classification of its financial assets at initial recognition. No
financial assets are held at fair value through Other Comprehensive
Income (OCI).
Trade receivables and other non interest bearing receivables
Trade and other non interest bearing receivables are recognised
initially at the amount of consideration that is unconditional,
unless they contain significant financing components, in which case
they are recognised at fair value. The Group holds the trade
receivables with the objective of collecting the contractual cash
flows, and so it measures them subsequently at amortised cost using
the effective interest method.
The Group's accounting policy is to recognise trade receivables
within current assets.
(i) Fair values of trade receivables
Due to the short-term nature of the current receivables, their
carrying amount is considered to be the same as their fair
value.
(ii) Impairment and risk exposure
Information about the impairment of trade receivables and the
Group's exposure to credit risk, foreign currency risk and interest
rate risk can be found in note 4.
Other financial assets at amortised cost
(i) Classification of financial assets at amortised cost
The Group classifies its financial assets at amortised cost only
if both of the following criteria are met:
-- the asset is held within a business model whose objective is
to collect the contractual cash flows; and
-- the contractual terms give rise to cash flows that are solely
payments of principle and interest.
(ii) Other receivables
-- These amounts generally arise from transactions outside the
usual operating activities of the Group. Interest could be charged
at commercial rates where the terms of repayment exceed six months.
Collateral is not normally obtained. The non-current other
receivables are due and repayable within three years from the end
of the reporting period.
-- Due to the short-term nature of the other current
receivables, their carrying amount is considered to be the same as
their fair value. For the majority of the non-current receivables,
the fair values are also not significantly different from their
carrying amounts.
Financial Assets at Fair Value Through Profit or Loss
(i) Classification of financial assets at fair value through
profit or loss
The Group classifies the following financial assets at fair
value through profit or loss (FVTPL):
-- Equity investments for which the entity has not elected to
recognise fair value gains and losses through OCI.
-- Derivative financial assets such as options over counterparty equity instruments.
(ii)Fair value, impairment and risk exposure
Information about the methods and assumptions used in
determining fair value is provided in note 3.
Offsetting Financial Instruments
Financial assets and liabilities are offset and the net amount
reported in the Statement of Financial Position when there is a
legally enforceable right to offset the recognised amounts and
there is an intention to settle on a net basis or realise the asset
and settle the liability simultaneously. The legally enforceable
right must not be contingent on future events and must be
enforceable in the normal course of business and in the event of
default, insolvency or bankruptcy of the company or the
counterparty.
Derivative Financial Instruments that do not qualify for hedge
accounting
Derivatives are initially recognised at fair value on the date a
derivative contract is entered into and are subsequently remeasured
at their fair value.
The Group's derivatives do not qualify for hedge accounting.
Changes in the fair value of any derivative instrument that does
not qualify for hedge accounting are recognised immediately in
profit or loss and are included in other gains/(losses).
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at
call with banks and other short term deposits with maturities of
three months or less.
Derivative financial liabilities
Derivative financial liabilities constitute warrants over the
parent company's own equity. They are initially recognised at fair
value on the date a derivative contract is entered into and are
subsequently remeasured at their fair value.
On the date of exercise the difference between the fair value
and the cash paid on exercise is recognized as share premium.
Information about the methods and assumptions used in
determining fair value is provided in note 3.
Trade and other receivables
Trade and other non-interest bearing receivables are initially
recognised at cost and are subsequently measured at amortised cost
using the effective interest method, less provision for impairment.
A provision for impairment of trade receivables is established when
there is objective and probable evidence that it is uncertain if
the amount due can be collected. Movement in the provision charged
or credited in the period is recognised in the income
statement.
The Group discounts some of its trade receivables. The
accounting policy is to continue to recognise the trade receivables
within current assets and to record cash advances as borrowings
within current liabilities.
Trade and other payables
Trade and other payables are not interest bearing and are
initially recognised at cost and are subsequently measured at
amortised cost using the effective interest method.
Equity instruments
Equity instruments issued by the Group are recorded at the
proceeds received, net of direct issue costs.
2.10 Share based payments
The Company issues equity-settled options and warrants to
certain employees, directors and financing parties and these are
measured at fair value at the date of grant by reference to the
fair value of the equity instruments granted. The fair value
determined at the grant date of equity-settled share-based payments
is expensed on a straight-line basis over the vesting period (or
immediately if there is no such period), based on the Company's
estimate of the number of instruments that will eventually vest
with a corresponding adjustment to equity. Fair value is measured
by use of an appropriate option pricing model. The expected life
used in the model has been adjusted based on management's best
estimates, for the effect of non-transferability, exercise
restrictions, and behavioral considerations.
Non-vesting and market vesting conditions are taken into account
when estimating the fair value of the option at grant date. Service
and non-market vesting conditions are taken into account by
adjusting the number of options expected to vest at each reporting
date.
2.11 Earnings per share
Basic earnings per share is calculated by dividing:
-- the profit or loss attributable to owners of the company,
excluding any costs of servicing equity other than ordinary
shares;
-- by the weighted average number of ordinary shares outstanding
during the financial year, adjusted for bonus elements in ordinary
shares issued during the year and excluding treasury shares (note
11).
Diluted earnings per share adjusts the figures used in the
determination of basic earnings per share to take into account:
-- the after-income tax effect of interest and other financing
costs associated with dilutive potential ordinary shares; and
-- the weighted average number of additional ordinary shares
that would have been outstanding, assuming the conversion of all
dilutive potential ordinary shares.
3. Critical accounting judgements and key sources of estimation
uncertainty
Estimates and judgements are continually evaluated and are based
on historical experience, internal controls, advice from external
experts and other factors, including expectations of future events
that are believed to be reasonable under circumstances. The
following estimates are considered integral to the Group's reported
financial information:
Investment valuation
The Group has a number of level 3 investments (see note 13)
whereby their valuation is determined in whole or in part using
valuation techniques based on assumptions that are not supported by
prices from observable market transactions in the same instrument
and not based on available observable data.
Valuation of unlisted equity investments
Management determines the fair value of unlisted equity
investments primarily by reference to the prevailing price of
further investment when conducted by the relevant entity on an
arm's length basis. This is determined by reference to relevant
historical fund raising prices and relevant post balance sheet
events where it can be explicitly demonstrated that the conditions
existed at the Group's balance sheet date. Management also
exercises its own professional judgement in conducting these
desktop valuations. At the balance sheet date the aggregate fair
value of investments valued in this manner was GBP5,745,536 (2021:
GBP13,384,222) (see note 13 for further analysis).
Where recent share placings have not been undertaken by the
relevant investee entity, or are not considered to be a reliable
indicator of fair value, management utilises alternative techniques
to assess equity valuations. Such techniques include reference to
comparable market transactions for similar businesses, enterprise
valuations based on revenue and EBITDA multiples and equity
valuation adjustments to take into account factors such as working
capital, cash and debt positions in the investee entity. Such
investment valuation methodologies rely on unobservable inputs and
will often present a range of potential valuations. The Directors
will adopt what they consider to be the most appropriate valuation
within such ranges but acknowledge that there remains significant
estimation uncertainty associated with this approach and that the
actual fair values of the investments may materially differ from
those recorded at the balance sheet date.
All Active Asset Capital ("AAA")
Asimilar holds 24 million AAA shares, representing 1.2% (2021:
1.3%) of the issued share capital.
The fair value of the shareholding at the balance sheet date of
GBP240,000 (2021: GBP984,000) was determined with reference to an
external valuation conducted by an independent third party. The
valuation was derived by using a net asset valuation basis using
publicly available data and the Directors' assessment of key asset
and liability valuations associated with AAA. This included an
assessment of the fair value of Sentiance N.V.
Veative Group Holdings Plc (formerly Dev Clever Holdings Plc)
("Veative")
The Group holds 72.3 million shares representing 8.4%
(2021:12.2%) of the issued share capital.
The fair value of the shareholding at the balance sheet date of
GBP1,952,100 (2021: Level 1 GBP27,835,500) was determined by
reference to an external valuation conducted by an independent
third party. The valuation was primarily derived by use of the
market approach and included calibration to the quoted share price
of Asimilar Group Plc. A significant unobservable, Level 3, input
was required with respect to the discount for illiquidity as the
share listing was suspended. This fell into the range 25% to 50% in
accordance with market practice.
Derivative assets - Veative Group Holdings Plc (formerly Dev
Clever Holdings Plc) ("Veative")
The fair value of derivative financial assets at the balance
sheet date of GBPnil (2021: GBP5,670,000) has been determined with
reference to third party actuarial valuation based on an adjusted
binomial model based on the "binomial" or "lattice" option pricing
method. The significant inputs into the model were a weighted
average share price of GBP0.027 at year end date, volatility of
54%, dividend yield of 0%, the assumption that warrants are
subscribed for when 100% in the money, and an annual risk-free
interest rate equal to the yield on zero coupon yield curve of UK
gilts at the issue dates. The volatility measured at the standard
deviation of continuously compounded share returns is based on
statistical analysis of Dev Clever's daily share prices over the
last year.
Derivative liabilities - AIL consideration warrants
The fair value of derivative liabilities at the balance sheet
date of GBP56,000 (2021: GBP2,129,400) has been determined through
a third party actuarial valuation using a Monte Carlo model that is
consistent with the mathematics underlying the Black-Scholes
methodology. The significant inputs into the model were a weighted
average Dev Clever share price of GBP0.027 at year end date,
volatility of 102%, dividend yield of 0%, the assumption that
warrants are subscribed for when in the money, and an annual
risk-free interest rate equal to the yield on zero coupon yield
curve of UK gilts at the issue dates. The volatility measured at
the standard deviation of continuously compounded share returns is
based on statistical analysis of daily share prices over the last
year relevant to the instrument (namely that of the Group and
reference holding, Dev Clever Holdings Plc).
Valuation of share based payments
The fair value of share based payments at the grant date of
GBPnil (2021: GBP571,000) has been determined through an actuarial
valuation using an adjusted binomial model. The significant inputs
into the model were a weighted average share price of GBP0.27 at
the grant date, average volatility of 73%, dividend yield of 0%,
the assumption that warrants are subscribed for when 100% in the
money, and an annual risk-free interest rate equal to the yield on
zero coupon yield curve of UK gilts at the issue dates. The
volatility measured at the standard deviation of continuously
compounded share returns is based on statistical analysis of daily
share prices over the twelve months prior to grant.
Magic Media Works - Unsecured Loan Notes
The fair value of the loan notes at the balance sheet date of
GBP1,045,551 (2021: GBP963,854) was assessed with referenced to the
fair value of equity implied by fundraising undertaken by the
company during the year and the implied valuation of the debt
arrangements entered into with warrants attached. This gave an
implied debt valuation discount of 50% which has been applied to
the discounting of the unsecured loan notes.
4. Financial Risk Management
Financial Risk Factors
The Group's activities expose it to a variety of financial
risks: market risk (including currency risk, fair value interest
rate risk, cash flow interest rate risk and price risk), credit
risk and liquidity risk. The Group's overall risk management
programme focuses on the unpredictability of financial markets and
seeks to minimise potential adverse effects on the Group's
financial performance.
Risk management is carried out under policies approved by the
Board of Directors. The Board provides principles for overall risk
management, as well as policies covering specific areas, such as
foreign exchange risk, interest rate risk, credit risk, use of
derivative financial instruments and non-derivative financial
instruments, and investment of excess liquidity.
(i) Derivatives
Derivatives held by the Company are for speculative investment
and not for economic hedging purposes. They are classified as 'held
for trading' for accounting purposes and are accounted for at fair
value through profit or loss.
They are presented as current assets or liabilities to the
extent that they are expected to be settled within 12 months after
the end of the reporting period.
Information about the derivatives used by the Group is provided
in notes 12 and 16.
(ii) Fair value measurement
For information about the methods and assumptions used in
determining the fair value of derivatives, refer to note 3.
(a) Market Risk
(i) Foreign Exchange Risk
The Directors do not consider the Group to be exposed to a
significant currency risk in the current year.
(ii) Price Risk
The Group is exposed to equity securities price risk because of
investments held by the Group, classified on the consolidated
Statement of Financial Position at fair value through profit or
loss. The Group is not exposed to commodity price risk.
Sensitivity analysis
The table below summarises the impact of increases/decreases in
the equity investment portfolio on the Group's post-tax loss for
the year and on total equity. The analysis is based on the
assumption that the equity investments had increased/decreased by
5%, with all other variables held constant. Where option pricing
models with unobservable inputs have been used to derive fair
values, the impact of changes in the most significant input
assumption has been demonstrated.
Level 3 Investments in equity instruments
Impact on post-tax Impact on total
profit/loss equity
2022 2021 2022 2021
GBP GBP GBP GBP
Financial assets at fair
value through profit or
loss - increase in value5% 224,302 332,827 224,302 332,827
Financial assets at fair
value through profit or
loss - decrease in value5% (224,302) (332,827) (224,302) (332,827)
Impact on post-tax Impact on total
profit/loss equity
2022 2021 2022 2021
GBP GBP GBP GBP
Dev Clever warrants change in
subscription behaviour (default
is to subscribe at 100% in the
money)
Subscribe at 20% in the money - (945,000) - (945,000)
Returns maximisation* - 280,000 - 280,000
Financial liabilities - consideration
warrants
Financial liabilities at fair
value through profit or loss
- increase volatilities of reference
companies by 10% - (3,150) - (3,150)
Financial liabilities at fair
value through profit or loss
- decrease volatilities of reference
companies by 10% - (12,600) - (12,600)
Magic Media Works - unsecured
loan notes
Financial assets at fair value
through profit or loss:
Increase in discount by 10% (104,555) (96,385) (104,555) (96,385)
Decrease in discount by 10% 104,555 96,385 104,555 96,385
*Assumes the warrant holder tries to maximise returns in a
financially optimal way, which generally means they will not
exercise until almost the subscription deadline.
Post-tax loss for the year would increase/decrease as a result
of gains/losses on equity securities and derivative financial
instruments classified as at fair value through profit or loss.
(iii) Interest Rate Risk
The Group currently funds its operations through the use of
equity. Cash at bank which is denominated in sterling, is held at
variable rates. At the year end, the Group's financial liabilities
did not suffer interest and thus were not subject to interest rate
risk. Any decrease in interest rate to a minimum of 0% would have
an insignificant impact on the interest income received by the
Group.
(b) Credit Risk
(i) Risk Management
Credit risk is mitigated by the Group via managing and analysing
the credit risk for each new debtor before terms and conditions are
offered. Credit risk arises from cash and cash equivalents,
derivative financial instruments and deposits with banks and
financial institutions, as well as credit exposures to outstanding
receivables and committed transactions. For banks and financial
institutions, only independently rated parties with a minimum
rating of "A" are accepted.
While cash and cash equivalents are also subject to the
impairment requirements of IFRS 9, the identified impairment loss
was immaterial.
(c) Liquidity Risk
The principal risk to which the Group is exposed is liquidity
risk. The nature of the Group's activities means it finances its
operations through retained earnings, the issue of new shares to
investors and realisation of liquid investments. The principal cash
requirements are in relation to the Group's investing policy and
meeting working capital requirements. The Group seeks to manage
liquidity through planning, forecasting, and careful cash
management. For much of the year the Group has liquidated some of
its level 1 investments to ensure sufficient working capital in the
business.
Capital Risk Management
The Group's main objective when managing capital is to protect
returns to shareholders by ensuring the Group will continue to
invest and trade profitably in the foreseeable future. The Group
also aims to maximise its capital structure of equity so as to
minimise its cost of capital. The Group expects its current and
projected capital resources to be sufficient to cover its existing
liabilities.
The Group's capital structure is derived solely from the issue
of Ordinary and Deferred Shares.
The Group has not made any changes to its capital management
during the year.
5. REVENUE AND OTHER INCOME 2022 2021
GBP GBP
Revenue: Management fees 14,000 14,000
========= =========
The Company only has one class of business, investment holdings
and management, and therefore no segmental information has been
presented.
6. FINANCE INCOME AND COSTS 2022 2021
GBP GBP
Bank and other interest received 46 20,377
------------------ ------------------
46 20,377
========= =========
Other interest payable - 1,229
----------------- -----------------
- 1,229
======== ========
7. LOSS FOR THE YEAR BEFORE TAX 2022 2021
GBP GBP
Loss for the year is stated after
charging:
Auditors' remuneration
- audit of the Group and Parent Company's
financial statements 47,350 36,000
- interim financial statement review
services 2,200 2,000
Foreign exchange losses - 40,450
========= ==========
8. DIRECTORS' EMOLUMENTS 2022 2021
GBP GBP
Aggregate emoluments including benefits in kind and
valuation ascribed to share based payments, by director,
are as follows:-
Sohail Bhatti 50,000 50,000
John Taylor 36,000 36,000
Donald Stewart (resigned 26/10/2020) - 21,000
Mark Horrocks 36,000 108,000
Michael Preen 36,000 71,200
------------------ ------------------
Aggregate emoluments 158,000 286,200
========= =========
No warrants were granted to directors during the year.
The number of directors for whom retirement benefits are
accruing under defined contribution schemes was nil (2021: Nil).
The total contributions payable during the year amounted to GBPNil
(2021: GBP Nil).
Exercisable warrants held by directors who held office at the
relevant balance sheet date are detailed below:
2022 2021
Number Number
Current directors
Sohail Bhatti - exercise price 5p,
exercised 28 July 2022 - 2,000,000
Sohail Bhatti - exercise price 10p,
expired 3 December 2022 1,000,000 1,000,000
John Taylor - exercise price 10p,
expired 3 December 2022 2,000,000 2,000,000
Mark Horrocks - exercise price 0.01p,
exercised 20 September 2022 - 3,150,000
Mark Horrocks - exercise price 0.01p,
expires 31 December 2025 3,150,000 3,150,000
Mark Horrocks - exercise price 30p,
expires 22 October 2023 1,000,000 1,000,000
Michael Preen - exercise price 60p,
expires 17 June 2024 250,000 250,000
----------------------- -----------------------
7,400,000 12,550,000
=========== ===========
9. STAFF COSTS 2022 2021
Number Number
The average monthly number of employees (including
directors) during the year was
Administration 4 4
======== ========
GBP GBP
Employment costs
Wages and salaries 158,000 117,200
Social security costs 11,773 8,748
Warrants granted (note 18) - 169,000
------------------ ------------------
169,773 294,948
========= =========
10. TAXATION 2022 2021
GBP GBP
10(a) Current year tax
UK corporation tax (note 10(b)) - -
======= =======
10(b) Factors affecting the tax charge for the
year
(Loss) / Profit on ordinary activities before
taxation (35,271,732) 26,705,635
----------------- -----------------
(Loss) / Profit on ordinary activities before
taxation multiplied by the main
rate of UK corporation tax 19% (2020: 19%) (6,701,629) 5,074,071
----------------- -----------------
Effects of:
Unrealised loss on remeasurement to FV (6,607,601) (4,925,834)
Capital gains difference at 19% 43,125 228,890
Net tax adjustments and transfer - (25,188)
Non deductible expenses 22,033 (243,463)
Deferred tax not recognized (159,186) (108,476)
------------------ ------------------
Current tax charge - -
========= =========
The Company has unutilised losses carried forward of
GBP1,544,704 (2021: GBP1,590,705). As at 30 September 2022 the
Group and Company had unrealised chargeable losses of GBP4,331,894
(2021: gains GBP1,170,913) which give rise to a potential deferred
tax asset of GBP823,060 (2021: liability GBP292,728). No deferred
tax asset has been recognised in respect of these losses, as there
is no certainty as to when the asset can be utilised. The Group and
Company's deferred tax balance and charge for the year were GBPnil
(2021: GBPnil).
Asimilar Investments Limited has no tax charge for the current
year and is considered outside the scope of UK corporation tax.
11. EARNINGS PER SHARE
The calculations of earnings per share are based on the
following profits and number of shares.
2022 2021
Basic Diluted Basic Diluted
(Loss) / profit for
the
financial year (35,271,732) (35,271,732) 26,705,636 26,705,636
-------------------------- ------------------------ -------------------------- -----------------------
Weighted average
number
of shares for
basic and diluted
profit
per share 122,244,418 122,244,418 114,661,685 138,871,831
============= ============= ============ ===========
(Loss)/profit per
share
(pence per share) (28.85p) (28.85p) 23.29p 19.23p
============= ============= ============ ===========
IAS 33 requires presentation of diluted EPS when a company could
be called upon to issue shares that would decrease earnings per
share, or increase the loss per share. For a loss making Company
with outstanding share options, net loss per share would be
decreased by the exercise of the options. Therefore, per IAS33:36
the antidilutive potential ordinary shares are disregarded in the
calculation of diluted EPS.
12 FINANCIAL ASSETS
(a) Summary of financial
assets
2022 2021
GBP GBP
Non-Current
Investments in financial assets
designated at fair value through
profit or loss (see (b)) 5,761,864 36,312,423
---------------------- ----------------------
5,761,864 36,312,423
Current
Investments in financial assets
designated at fair value through
profit or loss (see movement
analysis in (c)) 804,541 6,727,681
Trade receivables carried
at amortised cost (Note 14) 99,360 66,790
---------------------- ----------------------
903,901 6,794,471
=========== ===========
6,665,765 43,106,894
=========== ===========
(b) Analysis of movement
of non-current investments
2022 2021
Financial assets designated GBP GBP
at fair value through profit
or loss
Non - Current
Fair value of investments
brought forward 36,312,424 5,771,908
Purchases during the year 1,598,154 8,594,573
Disposals during the year (1,471,868) (88,652)
Net unrealised (loss) / gain
in fair value (30,676,846) 22,034,594
---------------------- ----------------------
Fair value of investments
carried forward 5,761,864 36,312,423
=========== ===========
(c) Analysis of movement
of current financial assets 2022 2021
GBP GBP
Financial assets designated
as held at fair value through
profit or loss
Current
Fair value of investments
brought forward 6,727,681 3,022,495
Purchases during the year 30,076 976,182
Disposals during the year - (923,912)
Net unrealised (loss) / gain
in fair value (5,953,216) 3,652,916
---------------------- ----------------------
Fair value of investments
carried forward 804,541 6,727,681
=========== ===========
Current investments are investment held for short term and
expected to be realised within 12 months of the balance sheet date,
whereas non-current investments are held for the longer term. There
is uncertainty that the short term investment values will be
realised as are dependent on future values and liquidity of
demand.
As at 30 September 2022 the fair value of options and warrants
over shares in Dev Clever Holdings Plc was GBPnil (2021:
GBP5,670,000). See note 3 for valuation details.
Financial assets held at amortised cost
No assets were held at amortised costs
Details of the investments held are given in the Chairman's
Statement.
13. FAIR VALUE OF FINANCIAL INSTRUMENTS
IFRS 9 requires the Group to classify financial instruments at
fair value using a fair value hierarchy that reflects
the significance of the inputs used in making the measurement.
The fair value hierarchy has the following levels:
-- quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);
-- inputs other than quoted prices included within Level 1 that
are observable for the asset or liability, either directly (that
is, as prices) or indirectly (that is, derived from prices) (Level
2);
-- inputs for the asset or liability that are not based on
observable market data (that is, unobservable inputs) (Level
3).
(a) Financial instruments classified as level 1
The fair value of financial instruments traded in active markets
is based on quoted market prices at the end of the reporting
period. A market is regarded as active if quoted prices are readily
and regularly available from an exchange, dealer, broker, industry
group, pricing service or regulatory agency, and those prices
represent actual and regularly occurring market transactions on an
arm's length basis. The quoted market price used for financial
assets held by the Group is the current bid price. These
instruments are included in Level 1. Instruments included in Level
1 comprise equity investments classified as trading securities or
available-for-sale.
(b) Financial instruments classified as level 2
The fair value of financial instruments that are not traded in
an active market (for example, over-the-counter derivatives) is
determined by using valuation techniques. These valuation
techniques maximise the use of observable market data where it is
available and rely as little as possible on entity-specific
estimates. If all significant inputs required to fair value an
instrument are observable, the instrument is included in Level
2.
If one or more of the significant inputs is not based on
observable market data, the instrument is included in Level 3.
Specific valuation techniques used to value financial
instruments include:
-- quoted market prices or dealer quotes for similar instruments;
-- the fair value of interest rate swaps is calculated as the
present value of the estimated future cash flows based on
observable yield curves;
-- the fair value of forward foreign exchange contracts is
determined using forward exchange rates at the end of the reporting
period, with the resulting value discounted back to present
value;
-- other techniques, such as discounted cash flow analysis, are
used to determine fair value for the remaining financial
instruments.
The Group holds no financial instruments classified as level
2.
(c) Financial instruments classified as level 3
The fair value of financial instruments that are not traded in
an active market (for example, over-the-counter derivatives) and
determined by using valuation techniques which require significant
adjustment based on unobservable inputs are included in level
3.
The determination of what constitutes observable requires
judgement by the Group. The Group considers observable data to be
market data that is readily available, regularly distributed or
updated, reliable and verifiable, not proprietary, and provided by
independent sources that are actively involved in the relevant
market.
For financial instruments classified as level 3 the Group uses a
combination of internal and external valuations. Where management
determines an external valuation is appropriate the Group engages
with professional service providers. Specific valuation techniques
include:
-- Market approach (utilising EBITDA or revenue multiples,
industry value benchmarks and available market prices
approaches);
-- Net asset approach;
-- Income approach (utilising discounted cash flow, replacement cost and net asset approaches);
-- Desktop valuations based on price of a recent transaction
when transaction price/cost is considered indicative of fair value;
and
-- Actuarial valuations using Monte Carlo, Black Scholes and adjusted binomial models.
The following table presents the Group's assets that are
measured at fair value at 30 September 2022:
Level 1 Level 3 Total
GBP GBP GBP
Held at fair value
At 1 October 2020 1,695,810 7,098,593 8,794,403
---------------------- ---------------------- ----------------------
Additions during the year 6,802,757 2,767,997 9,570,754
Disposals during the year (136,564) (876,000) (1,012,564)
Revaluation recognised in
statement of comprehensive
income 21,293,879 4,393,631 25,687,510
---------------------- ---------------------- ----------------------
At 1 October 2021 29,655,882 13,384,221 43,040,103
---------------------- ---------------------- ----------------------
Additions during the year 57,476 1,570,754 1,628,230
Disposals during the year (487,868) (984,000) (1,471,868)
Reclassification* (27,199,661) 27,199,661 -
Revaluation recognised in
statement of comprehensive
income (1,204,962) (35,425,100) (36,630,062)
---------------------- ---------------------- ------------------------
At 30 September 2022 820,867 5,745,536 6,566,403
---------------------- ---------------------- -----------------------
Net book value
At 30 September 2022 820,867 5,745,536 6,566,403
=========== =========== ===========
At 30 September 2021 29,655,882 13,384,221 43,040,103
=========== =========== ===========
*Veative holding has been reclassified from Level 1 to Level 3
as the company was suspended from AIM and subsequently delisted and
failed to meet the definition of Level 1 holdings.
The following table presents the Group's financial liabilities
that are measured at fair value at 30 September 2022:
Level Level 3 Total
1
Held at fair value
At 1 October 2021 - 2,129,400 2,129,400
Fair value adjustment - (1,853,215) (1,853,215)
Transfer to share premium
on exercise - (220,185) (220,185)
---------------------- ---------------------- ----------------------
At 30 September 2022 - 56,000 56,000
---------------------- ---------------------- ----------------------
There were no transfers between levels during the year.
Refer to note 3 for further details of specific level 3
valuations performed during the year.
Refer to note 4 for sensitivity analysis on changes to financial
instruments carried at fair value.
14. TRADE AND OTHER RECEIVABLES 2022 2021
GBP GBP
Trade receivables 8,400 23,400
Prepayments and accrued
income 54,390 28,691
Other receivables 90,960 43,390
----------------- -----------------
153,750 95,481
======== ========
The Directors consider the carrying value of trade and other
receivables to equal their fair value. No interest is charged on
receivables.
The Directors consider trade receivables held at amortised cost
to have no significant financing element, and the effect of
discounting to be immaterial.
15. TRADE AND OTHER PAYABLES 2022 2021
GBP GBP
Trade payables 41,016 40,980
Accruals and deferred income 81,814 83,635
Other taxes and social
security 96,320 7,020
--------------- ---------------
219,150 131,635
======== ========
The Directors consider the carrying value of trade and other
payables to equal their fair value.
16. DERIVATIVE FINANCIAL LIABILITIES 2022 2021
GBP GBP
Derivative liabilities 56,000 2,129,400
======== ========
On 30 August 2020 as part of the consideration advanced for the
acquisition of AIL, Asimilar Group Plc granted warrants to
subscribe for up to 6,300,000 Asimilar Group Plc ordinary shares in
two tranches of up to 3,150,000 warrants per tranche. The warrants
represent derivatives over own equity and have been recognised as
derivative financial liabilities.
Refer to note 3 for further details regarding the valuation of
derivative financial liabilities.
Refer to note 4 for sensitivity analysis on changes to financial
liabilities carried at fair value.
The change in the fair value of the warrants from GBP2,129,400
to GBP56,000 as at 30 September 2022 represents a fair value gain
to the Group of GBP1,853,215 from start of the year to date of
exercise which has been recognised in the income statement and the
fair value at the date of exercise of GBP220,198 was recognised as
share premium arising on exercise of the first tranche of the
warrants.
The change in fair value arose as a result of fluctuations in
the share prices of referenced equity instruments within the
consideration warrants between the reporting dates of 30 September
2021 and 30 September 2022 and the exercise of the first tranche of
the warrants at a lower price than that at the original grant
date.
17. SHARE CAPITAL 2022 2021
GBP GBP
Issued and fully paid
As at 1 October 2021 5,214,709 5,213,277
Issue of 4,814,182 (2021: 14,322,500)
Ordinary shares of 0.01p each 481 1,432
----------------------- -----------------------
At 30 September 2022 5,215,190 5,214,709
=========== ===========
The Company has the following classes
of share capital
Ordinary shares 126,489,125 (2021: 121,683,943)
shares of 0.01p each 12,649 12,168
A deferred shares (44,132,276 shares
of 9.99p each) 4,408,815 4,408,815
Deferred shares (8,819,181 shares of
9p each) 793,726 793,726
---------------------- ----------------------
5,215,190 5,214,709
=========== ===========
Share Premium 2022 2021
GBP GBP
As at 1 October 2021 17,932,954 14,327,636
Shares issued during the year (net of
costs) 248,794 3,605,318
Transfer from warrant reserve on expiration 157,813 -
of placing warrants
----------------------- -----------------------
At 30 September 2022 18,339,561 17,932,954
=========== ===========
Share transaction history
During the year ended 30 September 2022 the following share
transactions took place.
Asimilar Group Plc issued new shares as a result of exercise of
various warrants as follows:
- 573,333 warrants were exercised at 5p raising funds of GBP28,667.
- 4,240,849 warrants were exercised at par raising funds of
GBP424. Included in this is the exercise of 3,150,000 consideration
warrants at par. The fair value of the warrant at the date of
exercise was GBP220,185 which credited to the share premium
account.
The ordinary shares have full voting rights, priority dividend
rights and priority in the case of winding up.
The deferred shares of 9.99p each have no voting rights and
shareholders are not entitled to any dividend, and only receive the
nominal amount paid up on their share after there has been
distributed GBP1,000,000 to each of the holders of the ordinary
shares. The deferred shares shall not entitle the holders thereof
to any further or other right of participation in the assets of the
Company.
The A deferred shares have no voting rights and shareholders are
not entitled to any dividend. H olders of A deferred shares shall
be entitled to the amount paid up or credited as paid up on the A
deferred shares to be paid out of the assets of the Company
available for distribution among the members, after payment, to the
holders of deferred Shares of the amounts paid up thereon. The
holders of the A deferred shares shall not be entitled to any other
or further right to participate in the assets of the Company.
Warrants
Movements in warrants during the year
Warrant Exercise Vest date Expiry date
number price
(pence)
As at 1 October
2021
573,333 5p 05/02/2019 21/02/2022
2,000,000 5p 07/05/2019 31/05/2022
5,000,000 10p 03/12/2019 03/12/2022
1,000,000 30p 22/10/2020 22/10/2023
10,000,000 130p 24/01/2020 31/12/2021
3,150,000 0.01p* 31/08/2020 31/12/2025
3,150,000 0.01p** 31/08/2020 31/12/2025
6,000,000 50p 24/02/2021 24/08/2022
250,000 60p 18/06/2021 17/06/2024
------------------------
31,123,333
Weighted average
price 55p
Lapsed (10,000000) 130p 24/01/2020 31/12/2021
(6,000,000) 50p 24/02/2021 24/08/2022
Cancelled (909,151) 5p 07/05/2019 31/05/2022
Exercised (1,090,849) 0.01p 07/05/2019 31/05/2022
(573,333) 5p 05/02/2019 21/02/2022
(3,150,000) 0.01p* 31/08/2020 31/12/2025
------------------------
Total exercised (4,814,182)
Weighted average
price 0.6p
-------------------------
9,400,000
============
As at 30 September
2022
5,000,000 10p 03/12/2019 03/12/2022
1,000,000 30p 22/10/2020 22/10/2023
3,150,000 0.01p** 31/08/2020 31/12/2025
250,000 60p 18/06/2021 17/06/2024
------------------------
9,400,000
============
Weighted average
price 4.6p
* Exercisable in the event mid market price of DevClever
Holdings Plc is or exceeds 28p for at least 5 consecutive business
days. This condition was met on 29 March 2021 and the warrant was
exercised on 20 September 2022.
** Exercisable in the event mid market price of DevClever
Holdings Plc is or exceeds 55p for at least 5 consecutive business
days.
Of the 9,400,000 outstanding warrants (2021: 31,123,333
warrants), 6,250,000 warrants (2021: 27,723,333) were
exercisable.
Warrants exercised in 2022 resulted in 4,814,182 shares (2021:
14,322,000 shares) being issued at a weighted average price of
GBP0.006 each (2021: GBP0.25 each). The related weighted average
share price at the time of exercise was GBP0.11 (2021: GBP0.40) per
share. There were no transaction costs to offset against the
proceeds received in either period.
.
No warrants were issued during the year.
Warrant Reserve
2022 2021
GBP GBP
As at 1 October 2021 157,813 157,813
Transferred to share premium on expiration (157,813) -
of placing warrants
----------------------- -----------------------
At 30 September 2022 - 157,813
=========== ===========
SHARE BASED PAYMENTS
18.
The Company did not issue any options or warrants during the
year.
The total value of share based payments recognised as
expenditure during the year was nil (2021: GBP571,000). This amount
has also been credited to equity in accordance with the provisions
of IFRS 2: Share Based Payments.
19. ULTIMATE CONTROLLING PARTY
The Group is admitted to AIM and there is no individual
controlling party. The Directors' Report provides details of those
shareholders with an individual holding exceeding 3% of issued
share capital.
20. RELATED PARTY DISCLOSURES
Directors' remuneration is shown in Note 8. There were no key
management personnel other than the Directors (2021: none).
Mark Horrocks is a member of Intrinsic Capital LLP which
administers the listed investments held by Asimilar Group Plc.
Management fees paid during the year were GBP20,719 (2021:
GBP1,229). These were fully paid during the year.
There were no other transactions falling within the scope of IAS
24 Related Party Disclosures.
21. POST BALANCE SHEET EVENTS
On 16 December 2022 DevClever announced its intention to delist
and change its name to Veative Group Holdings Plc.
On 22 December 2022 Gorilla Technology Group Inc offered to
acquire the assets and IP of SeeQuestor Limited. Given the cash
position of the company, this offer was accepted by the
shareholders. The only payment due to shareholders of the company
is $3m in January 2024 subject to certain earn out conditions. The
board of Asimilar believes it is unlikely that any payment will be
due. The value of the investment has been written down to nil at
the balance sheet date.
The Board is also proposing to delist the Group from AIM. A
circular enclosed with the annual report includes the detailed
proposal.
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END
MSCPPUBGCUPWURW
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April 24, 2023 02:00 ET (06:00 GMT)
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