TIDMELEG
RNS Number : 5995U
Electric Guitar PLC
24 November 2023
24 November 2023
Electric Guitar PLC
("Electric Guitar" or the "Company")
Interim Results for the six months ended 30 September 2023
Electric Guitar PLC (LSE: ELEG), the Special Purpose Acquisition
Company seeking acquisitions in the digital marketing and
advertising industry as a provider of first-party data solutions,
is pleased to announce its unaudited interim results for the six
months ended 30 September 2023.
Highlights
In the six months to 30 September 2023, Electric Guitar PLC
(LSE: ELEG) has made significant progress in its mission to become
the provider of choice of first-party data solutions for the
marketing and advertising industry, empowering businesses to
realise the value of their first-party data. In an era of changing
consumer attitudes towards the use of their data, tighter privacy
legislation, and the demise of third-party cookies, first-party
data is now the key to success in digital marketing.
The Company has continued to trade as a Special Purpose
Acquisition Company since it was listed on the Standard Segment of
the FCA Official List and Main Market of the London Stock Exchange
("LSE") in January 2022. In April 2023, Richard Horwood, an
experienced corporate financier and media-tech entrepreneur and
manager, joined the Board of the Company to help it continue to
seek out and secure potential acquisitions, and he has since been
appointed Chief Operating Officer. In September 2023, the Company
appointed experienced chartered accountant, Ben Lister, as Chief
Financial Officer.
On 6 July 2023, the Company entered into non-binding heads of
terms to acquire (through a reverse takeover subject to, inter alia
due diligence and shareholder approval) all the outstanding shares
in 3radical Limited ("3radical"), in an all-share transaction
valuing 3radical at GBP3m subject to adjustments. Accordingly,
trading in Electric Guitar PLC's shares was suspended pending the
intended completion of the acquisition in accordance with the
applicable Listing Rules.
The Company has engaged advisers to assist it in the detailed
due diligence of 3radical, as well as the proposed transfer of the
Company's listing to the LSE's AIM market, with a view to
facilitating a fundraising at the same time and, in so doing, the
Company has inevitably incurred significant costs. Accordingly, on
27 October 2023, the Company secured a GBP250,000 loan facility
from its largest shareholder, Sanderson Capital, to help fund it to
complete its first acquisition.
Chair's Statement
I am pleased to present the Company's unaudited interim results
for the six months ended 30 September 2023.
Following the Company's listing at the start of last year, we
have actively investigated many potential acquisitions in pursuit
of our mission to become the provider of choice of first-party data
solutions through acquisitions and investments in the marketing and
advertising industry. Key to our approach has been to identify, as
our first acquisition, a business that can act as a solid platform
for growth, both organically and through adding complementary
acquisitions.
On 6 July 2023, we agreed in principle to the acquisition of
3radical. In 3radical, we have found a company with an experienced
management team and a well-established software platform already in
use by major clients around the world. 3radical's Voco software
platform helps marketers engage their customers, securing the
valuable first-party data that marketers increasingly need as
third-party cookies are progressively removed. In an era of
changing consumer attitudes towards the use of their data, tighter
privacy legislation, and the demise of third-party cookies,
first-party data is now the key to success in digital
marketing.
Google Chrome has announced it will follow Apple and others in
blocking cookies from advertisers by the end of next year,
resulting in the vast majority of the online advertising industry
becoming cookie-free. 3radical's Voco is therefore well positioned
to capitalise on this structural shift, as brands and businesses
increasingly need to acquire data themselves.
Electric Guitar continues to investigate further acquisitions
and investments in the sector. As we progress with this strategy,
3radical should also benefit from collaborations with other such
service providers offering complementary products and services,
both by accessing new clients and markets for its services, as well
as by combining with them in sales to its existing customers.
The Company continues to benefit greatly from the experience,
commitment and expertise of its management team led by John Regan,
Chief Executive Officer, and from the quality of its advisers. In
April 2023, Richard Horwood, an experienced corporate financier and
media-tech entrepreneur and manager, joined the Board of Electric
Guitar to help it continue to seek out and secure potential
acquisitions. Richard has since been appointed Chief Operating
Officer. In September 2023, the Company appointed experienced
chartered accountant Ben Lister as Chief Financial Officer. I would
also like to thank Sanderson Capital for their continued
support.
John C Hutchinson
Chair
Date: 23 November 2023
MANAGEMENT REPORT
For the six months ended 30 September 2023
Principal activities
The Company was incorporated on 24 March 2021 in England and
Wales as a private company and it was re-registered as a public
company on 24 June 2021. Subsequently, on 11 January 2022, the
Company was listed on the Official List and the Main Market of the
LSE pursuant to Chapter 14 of the Listing Rules (which sets out the
requirements for Standard Listings). The principal activity of the
Company during the period to 30 September 2023 was, and continues
to be, that of identifying potential companies, businesses, or
assets for acquisition.
Principal risks and uncertainties
The principal risks currently faced by the Company relate
to:
Inability to fund operations pre-acquisition
In order to continue operations to the point where the Company
is able to complete an acquisition, particularly if the acquisition
is not completed by the Initial Acquisition Deadline of 11 January
2024, (being 24 months from the date on which the Company listed on
the LSE), the Company will need to ensure that it has sufficient
funds to meet all its listing and operating expenses through to
completion. The Company currently has limited working capital. Post
balance-sheet, the Company has secured a GBP250,000 loan from
Sanderson Capital Partners Limited, the principal shareholder in
Electric Guitar, subject to certain conditions.
The company's relationship with the directors and conflicts of
interest
The Company is dependent on the directors to identify potential
acquisition opportunities and to execute acquisitions. John Regan
and Richard Horwood are executive directors and have committed
their whole time to the Company's business. Non-executive directors
will allocate a portion of their time to other businesses which may
lead to the potential for conflicts of interest in their
determination as to how much time to assign to the Company's
affairs.
The proposed acquisition of 3radical Ltd may not be
completed
If the company does not complete the proposed acquisition, it
may not be able to fulfil its objectives and will likely require
additional working capital, or proposals put to shareholders as to
the future of the Company. In addition, if the acquisition is not
completed, the Company may be left with substantial transaction
costs.
Risks inherent in the proposed acquisition of 3radical
Although the Company and the directors evaluate the risks
inherent in a particular target, they cannot offer any further
assurance that all the significant risk factors can be identified
or properly assessed.
Reliance on external advisors
The directors rely on external advisors to help assess the
proposed acquisition and there is a risk that such advisors fail to
perform as required.
Failure to obtain additional financing to complete an
acquisition or fund a target's operations
There is no guarantee that the Company will be able to obtain
any additional financing needed to either complete an acquisition
or to implement its plans post-acquisition or, if available, to
obtain such financing on terms which are reasonable to the Company.
In that event, the Company may be compelled to restructure or
abandon the acquisition or proceed with the acquisition on less
favourable terms, which may reduce the Company's return on
investment. The failure to secure additional financing on
acceptable terms could have a material adverse effect on the
continued development or growth of the Company and the acquired
business.
Reliance on income from the acquired activities
Following an acquisition, the Company may be dependent on the
income generated by the acquired business or from the subsequent
divestment of the acquired business to meet the Company's expenses.
If the acquired business is unable to provide sufficient funds to
the Company, the Company may be unable to pay its expenses or make
distributions and dividends on the ordinary shares.
Restrictions in offering ordinary shares as consideration for an
acquisition or requirements to provide alternative
consideration
In certain jurisdictions, there may be legal, regulatory, or
practical restrictions on the Company using its ordinary shares as
consideration for an acquisition or which may mean that the Company
is required to provide alternative forms of consideration. Such
restrictions may limit the Company's acquisition opportunities or
make a certain acquisition more costly, which may have an adverse
effect on the results of operations of the Company.
Financial review
For the six months ended 30 September 2023, the Company reports
a net loss of GBP590,504 (2022: net loss of GBP371,680). During the
six months to 30 September 2023, the Company has incurred
significant costs relating to the due diligence of potential
acquisitions and the acquisition of 3radical, resulting in net
operating cash outflow of GBP396,031 (2022: outflow of GBP337,575).
At 30 September 2023, the Company held cash of GBP95,605 (2022:
GBP658,756).
Directors
The following Directors have held office during this period:
John P Regan (CEO)
John C Hutchinson (Chair)
Sarfraz Munshi (NED)
Richard J Horwood (COO) (Appointed 1 April 2023)
DIRECTORS RESPONSIBILITY STATEMENT
For the six months ended 30 September 2023
Each of the Directors confirms that to the best of their
knowledge:
-- The interim financial statements have been prepared in
accordance with IAS 34 'Interim Financial Reporting' as contained
in UK-adopted International Accounting Standards.
-- The interim financial statements include a fair review of the
information required by DTR 4.2.7R (indication of important events
during the first six months of the financial year and their impact
on the condensed financial statements and description of principal
risks and uncertainties for the remaining six months of the
financial year); and
-- The interim financial statements include a fair review of the
information required by DTR 4.2.8R (disclosures about related
parties transactions during the first six months of the financial
year that materially affected the financial position or performance
in that period and changes in related parties transactions
described in the annual report that could materially affect the
financial position or performance in that period).
UNAUDITED CONDENSED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 September 2023
Six months
Six months to
to 30 September 30 September
2023 2022
(unaudited) (unaudited)
Notes GBP GBP
Administrative Expenses 4 (181,809) (108,502)
Operating Loss (178,248) (78,815)
Exceptional Costs 5 (414,761) (264,998)
Finance income 6,067 1,819
Loss before income tax (590,504) (371,681)
Income Tax -
Loss and other comprehensive
income (590,504) (371,680)
======================= =====================
Loss per Share
Basic and diluted loss per share** 6 (1.02) (0.64)
All items in the above statement derive from continuing
operations.
There was no other comprehensive income for the 6 months to 30
September 2023 (30 September 2022: GBPnil)
** Series A & B Warrants were issued by the company to
officers and suppliers respectively. The share warrants are not
considered to have any dilutive effect as the average market price
of the ordinary shares during the period did not exceed the
exercise price of the warrants.
The notes on the following pages form part of these financial
statements.
UNAUDITED CONDENSED STATEMENT OF FINANCIAL POSITION
30 September 2023
30 September
2023 31 March 2023
(unaudited) (audited)
Notes GBP GBP
ASSETS
CURRENT ASSETS
Trade and other receivables 7 92,350 29,533
Cash and cash equivalents 95,605 491,635
------------- --------------
187,955 521,168
TOTAL ASSETS 187,955 521,168
============= ==============
EQUITY
SHAREHOLDERS' EQUITY
Share capital 8 289,314 289,314
Share premium 948,629 948,629
Accumulated losses (1,373,580) (783,077)
TOTAL EQUITY (135,637) 454,866
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 9 323,592 66,302
TOTAL LIABILITIES 323,592 66,302
TOTAL EQUITY AND LIABILITIES 187,955 521,168
============= ==============
The notes on the following pages form part of these financial
statements.
UNAUDITED CONDENSED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 September 2023
Share Share Retained
Capital Premium Earnings Total
GBP GBP GBP GBP
At 1 April 2022 289,314 948,629 (245,386) 992,556
Comprehensive income
Loss for the period - - (371,680) (371,680)
Total comprehensive loss
for the period - - (371,680) (371,680)
At 30 September 2022 (unaudited) 289,314 948,629 (617,067) 620,876
Comprehensive income for
the year
Loss for the year - - (537,690) (537,690)
Total comprehensive loss
for the year - - (537,690) (537,690)
At 31 March 2023 (audited) 289,314 948,629 (783,077) 454,867
Comprehensive income for
the period
Loss for the period - - (590,504) (590,504)
Total comprehensive loss
for the period - - (590,504) (590,504)
At 30 September 2023 (unaudited) 289,314 948,629 (1,373,580) (135,637)
========= ========= ============ ==========
The notes on the following pages form part of these financial
statements.
UNAUDITED CONDENSED STATEMENT OF CASH FLOWS
For the six months ended 30 September 2023
Six months Six months
to to
30 September 30 September
2023 2022
(unaudited) (unaudited)
GBP GBP
Cash flow from operating activities
(Loss) for the period (590,504) (371,680)
Adjustments for:
Finance income (6,067) (1,819)
(Increase) / decrease in trade and
other receivables (62,817) 12,158
Increase in trade and other payables 257,290 21,947
-------------- --------------
Net cash used in operating activities (402,097) (339,394)
Cash flow from investing activities
Finance income 6,067 1,819
-------------- --------------
Net cash from in investing activities 6,067 1,819
Net cash from financing activities - -
-------------- --------------
Net (decrease) in cash and cash
equivalents (396,030) (337,575)
============== ==============
Cash and cash equivalents at the
beginning of the period 491,635 996,331
Cash and cash equivalents at the
end of the period 95,605 658,756
============== ==============
The notes on the following pages form part of these financial
statements.
NOTES TO THE INTERIM FINANCIAL STATEMENTS
For the six months ended 30 September 2023
1. General information
Electric Guitar Plc is a public limited company, registered in
England and Wales. The company's registered office is One
Bartholomew Close, London, EC1A 7BL. The Company's principal
activities and the nature of its operations are disclosed in the
director's report.
The interim financial statements are neither audited nor
reviewed by statutory auditors of the Company.
2. Accounting policies
2.1. Basis of preparation
The financial statements have been prepared under historical
cost convention, in accordance with UK adopted International
Financial Reporting Standards (UK adopted IFRS).
The following accounting principles have been applied:
2.2. Going concern
The financial statements have been prepared on a going concern
basis. The board has assessed the Company's financial position at
30 September 2023 and the factors that may impact the Company for a
period of up to 12 months from the date of these financial
statements were signed.
The Company is a special purpose acquisition company (SPAC) that
has been formed for the sole purpose of effecting a business
combination. The Company has a period of 24 months from the date on
which the Company listed on the London Stock Exchange, which was 11
January 2022, to do so. In the absence of a business combination by
the business combination deadline (11 January 2024), the Company
would have to seek approval from the shareholders at a general
meeting for the Company to continue to pursue an acquisition for
one more year from the date of the business combination deadline,
in default of which it will cease all operations except to commence
a members' voluntary liquidation and redeem the ordinary shares as
per the January 2022 prospectus.
The Company has considered its ability to continue as a going
concern for a period of at least 12 months from the date of signing
the financial statements. The Company has also considered what the
business could look like post-completion of a business combination,
which includes working capital requirements during the going
concern period.
The key assumptions used in the financial forecast relevant to
the going concern assessment include:
- Successful acquisition
- Admission to AIM
- Proposed fundraising at the time of acquisition.
The Company has entered into a non-binding heads of terms to
acquire all the outstanding shares in 3radical in an all-share
transaction through reverse takeover. The Company believes that
there is the existence of material uncertainty regarding a business
combination which may cast significant doubt on the Company's
ability to continue as a going concern, that being whether it is
able to complete the business combination by 11 January 2024. To
complete the acquisition of 3radical, the Company must obtain the
regulatory and shareholder approval and also complete due diligence
process.
The board is satisfied by the progress made in the proposed
acquisition and believes it is well-positioned to complete the
business combination within the specified time frame. Based on this
assessment, it is deemed appropriate to prepare the financial
statements on a going concern basis.
2.3. Foreign currency translation
Transactions in currencies other than the functional and
presentation currency of the Company, pound sterling, are recorded
at the rates of exchange prevailing on the dates of the
transactions. At each reporting date, monetary assets and
liabilities that are denominated in foreign currencies are
retranslated at the rates prevailing on the reporting date.
Non-monetary assets and liabilities that are determined in foreign
currencies are translated at the rates prevailing at the date when
the fair value was determined.
Gains or losses arising from the translation of monetary assets
and liabilities into the functional currency are included in the
net profit or loss for the period. Gains and losses on the
translation of assets and liabilities (both monetary and
non-monetary) from a functional currency to the presentational
currency are recognised directly in other comprehensive income.
2.4. Taxation
The income tax expense represents the sum of tax currently
payable and deferred tax.
Current tax
The tax currently payable is based on the taxable profit for the
period. Taxable profit differs from net profit as reported in
profit or loss because it excludes items of income or expense that
are taxable or deductible in other years and it further excludes
items that are never taxable or deductible. The Company's liability
for current tax is calculated using tax rates that have been
enacted or substantively enacted by the end of the reporting
period.
Deferred tax
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
liability method.
Deferred tax liabilities are generally recognised for all
taxable temporary differences and deferred tax assets are
recognised to the extent that is probable that taxable profits will
be available against which deductible temporary differences can be
utilised. Such assets and liabilities are not recognised in the
temporary differences arises from the initial recognition of
goodwill or from the initial recognition (other than in a business
combination) of other assets and liabilities in a transaction that
affects neither the taxable profit nor the accounting profit.
Deferred tax assets and liabilities are calculated, without
discounting, at tax rates that are expected to apply to their
respective period of realisation, provided those rates are enacted
or substantively enacted by the end of the reporting period.
Deferred tax assets are recognised to the extent that it is
probable that the underlying tax loss or deductible temporary
difference will be utilised against future taxable income. This is
assessed based on the Company's forecast of future operating
results, adjusted for significant non-taxable income and expenses
and specific limits on the use of any unused tax loss or credit.
Deferred tax liabilities are always provided for in full.
Deferred tax assets and liabilities are offset only when the
Company has a right and intention to set off current tax assets and
liabilities from the same taxation authority. Changes in the
deferred tax assets or liabilities are recognised as a component of
tax income or expense in profit or loss, except where they relate
to items that are recognised in other comprehensive income, or
directly in equity, in which case the related deferred tax is also
recognised in other comprehensive income or equity,
respectively.
2.5. Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand and
petty cash. It is the Company's policy to avoid the use of physical
cash wherever possible.
2.6. Share capital and share premium
Share capital represents the nominal value of shares that have
been issued. Share premium includes any premiums received on issue
of share capital. Any transaction costs associated with the issuing
of shares are deducted from share premium, net of any related
income tax benefits.
2.7. Pensions
Defined contribution pension plan
The Company makes contributions into employee managed Self
Invested Pension Plans ("SIPPs") all of which are defined
contribution. A defined contribution plan is a pension plan under
which the Company pays fixed contributions into a separate entity.
Once the contributions have been paid, the Company has no further
payment obligations.
The contributions are recognised as an expense in the statement
of comprehensive income when they fall due. Amounts not paid are
shown as a current liability in the balance sheet. The assets of
the plan are held separately from the Company in independently
administered funds.
2.8. Provisions for liabilities
Provisions are made where an event has taken place that gives
the Company a legal or constructive obligation that requires
settlement by a transfer of economic benefit, and a reliable
estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the statement of
comprehensive income in the year that the Company becomes aware of
the obligation and are measured at the best estimate at the balance
sheet date of the expenditure required to settle the obligation,
taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the
provision carried in the balance sheet.
2.9. Trade and other receivables
Trade and other receivables are recognised initially at fair
value and subsequently measured at amortised cost using the
effective interest method, less loss allowance.
2.10. Trade and other payables
Trade and other payables are obligations to pay for goods or
services that have been acquired in the ordinary course of business
from suppliers. Accruals and accounts payable are classified as
current liabilities if payment is due within one year or less. If
not, they are presented as non-current liabilities. Trade payables
are initially recorded at fair value, and subsequently measured at
amortised cost using the effective interest method.
2.11. Financial liabilities
All financial liabilities are recognised in the Statement of
Financial Position when the Company becomes party to the
contractual provision of the instrument.
2.12. Financial liabilities measured at amortised cost
The Company's financial liabilities held at amortised cost
comprise trade payables and other payables.
These financial liabilities are initially measured at fair value
net of any transaction costs directly attributable to the issue of
the instrument. Such interest-bearing liabilities are subsequently
measured at amortised cost using the effective interest rate method
in the statement of financial position.
2.13. Subsequent measurement
The trade and other payables are classified as liabilities at
amortised cost and are measured at amortised cost using the
effective interest rate. The amortised cost of a financial
liability is the amount at which the financial liability is measure
on initial recognition, minus the principal repayments, plus or
minus the cumulative amortisation using effective interest method
of any difference between the initial amount recognised and the
maturity amount. Such amortisation amounts are recognised in the
statement of comprehensive income. Due to the short-term nature of
trade and other payables, they are stated at their nominal value,
which approximates their fair value.
The Company does not have any instruments which are measured at
fair value through profit or loss. The Company has not entered into
any derivative instruments during the year.
2.14. Share warrants
The Company has granted A-series warrants to directors and
B-series warrants to service providers for the services received at
the time of listing.
The A-series warrants and B-series warrants are issued to
directors and service providers in respect of the service provided.
The grant of the share warrants is recognised as equity settled
share-based payments under IFRS 2. The share warrants are issued in
respect of the services received and can be exercised by the holder
of the warrants prior to the exercise date for a fixed number of
equity shares at fixed price. The value of the share-based warrants
is determined at the date of grant and expensed on a straight-line
basis over the vesting period with a corresponding increase in
equity based on the Company's estimate of the shares that will
eventually vest at the time of the grant. At each balance sheet
date, the Company revises its estimates of the number of warrants
that are expected to vest based on service and non-market
performance conditions.
The Company has considered the market condition (i.e. the target
share price being more than the exercise price) at the time of
estimating the fair value of the warrants. The amount expensed is
adjusted over the vesting period for changes in the estimate of the
number of shares that will eventually vest, except for changes
resulting from any market related performance conditions.
2.15. Capital management
Capital consists of ordinary shares, share premium and retained
earnings. The board monitors the return on capital. The Company is
not subject to any externally imposed capital requirements.
2.16. Employee benefits
The costs of short-term employee benefits are recognised as a
liability and an expense unless those costs are recognised as part
of the cost of inventories or non-current assets.
The cost of any unused holiday entitlement is recognised in the
period in which the employee's services are received.
Termination benefits are recognised immediately as an expense
when the Company is demonstrably committed to terminate the
employment of an employee or to provide termination benefits.
3. Employees and directors
Six months Six months
to to
30 September 30 September
2023 2022
(unaudited) (unaudited)
GBP GBP
Wages and salaries 82,083 32,700
Social security costs 1,604 178
Pension Contributions 1,590 -
============== ==============
85,277 32,878
The average number of employees and directors during the year
was as follows:
Six months Six months
to to
30 September 30 September
2023 2022
Administration 4 3
4. Administrative Expenses
30 September 30 September
2023 2022
(unaudited) (unaudited)
GBP GBP
Personnel & consultant costs 107,948 35,702
Legal & professional costs 60,893 9,378
Business overheads 5,958 12,444
Marketing & Website 7,010 20,550
181,809 78,075
========================== ==========================
5. Exceptional Expenses
30 September 30 September
2023 2022
(unaudited) (unaudited)
GBP GBP
Professional fees associated
with
target research and corporate
strategy - 95,283
Professional fees associated
with the
purchase of 3radical & re-listing
on AIM 374,761 -
Other professional fees 40,000 169,715
414,761 264,998
============================= =============================
6. Loss per share
Basic earnings per share is calculated by dividing the loss
attributable in the period to equity holders of the Company by the
weighted average number of ordinary shares in issue during the
period, excluding any ordinary shares purchased by the Company and
held as treasury shares.
Six months Six months
to 30 September to 30 September
2023 2022
(unaudited) (unaudited)
GBP GBP
Loss for the period attributable
to equity
holders of the Company (586,942) (371,681)
Weighted average no. of ordinary
shares 57,862,776 57,862,776
Loss per share (pence) (1.01) (0.64)
================= =================
The company issued A-series warrants and B-series warrants to
directors and service providers respectively. These warrants are
exercisable at a price equal to the 150% of the price at which the
shares were admitted to the London Stock Exchange with various
vesting periods. The exercise price for the warrants is 4.5
pence.
The exercise price is greater than the market price on 7 July
2023 immediately prior to the suspension of trading in the
Company's shares, so the fair value of both A-series warrants and
B-series warrants at 30 September 2023 is GBPnil.
7. Trade and other receivables
30 September 31 March
2023 2023
GBP GBP
Director's current account - 53
Prepayments 17,002 9,699
VAT 75,348 19,781
92,350 29,533
====================== ======================
8. Share capital
30 September 31 March
2023 2023
GBP GBP
Ordinary share capital - issued
and fully paid
57,862,776 Ordinary shares of
0.5p each 289,314 289,314
289,314 289,314
============== ==========
The ordinary shares carry voting and dividend rights.
9. Trade and other payables
30 September 31 March
2023 2023
GBP GBP
Trade creditors 154,637 16,001
Social security and other taxes 8,393 3,702
Accrued expenses 160,562 46,599
323,592 66,302
============== =========
10. Post-balance sheet events
On 27 October 2023, the Company entered into an agreement with
Sanderson Capital Partners Limited, an 18.33% shareholder in
Electric Guitar, for the provision of a loan facility of between
GBP150,000 and GBP250,000. The facility is repayable on the earlier
of six months or the Company's successful admission to trading on
AIM. At least GBP150,000 of the loan will be satisfied by the issue
of shares on the repayment date.
11. Related party disclosures
During the period under review, the Company entered into the
following related party transactions.
The Company acquired services for GBP275,000 (2023: GBP10,112)
relating to the due diligence of 3radical and its subsidiaries from
BDB Pitmans LLP. John Hutchinson serves as chair of Electric Guitar
and is senior partner of BDB Pitmans LLP.
The Company acquired services for GBP95,000 (2023: nil) from
Mymyne Ltd. GBP40,000 was for the provision of commercial due
diligence services to the Company in connection with the proposed
acquisition of a previous target which did not proceed. The
remaining GBP55,000 was for the provision of commercial due
diligence services to the Company in connection with the proposed
reverse takeover of 3radical (announced on 7 July 2023). John
Regan, who serves as CEO, and John Hutchinson, who serves as chair
and both being directors of the Company, are 36.9% and 9.5%
shareholders of Mymyne Ltd respectively.
12. Ultimate controlling party
The Company considers there to be no ultimate controlling
party.
For further information:
Electric Guitar PLC
John Hutchinson
Chair 01189 570 444
Axis Capital Markets 020 3026 0320
(Corporate Broker) rh@axcap247.com
Richard Hutchison
Yellow Jersey PR 020 3004 9512
Sarah Hollins electric@yellowjerseypr.com
Annabelle Wills
Bessie Elliot
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END
IR FIFEDLDLSFIV
(END) Dow Jones Newswires
November 24, 2023 03:15 ET (08:15 GMT)
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