27 June
2024
TEAM plc
("TEAM " or the
"Company ")
Interim
Results
TEAM well-placed for
International Growth on the back of Wealth exodus
TEAM plc (AIM: TEAM), the wealth,
asset management and complementary financial services group, is
pleased to announce its interim results for the six months to 31
March 2024.
Commenting on the results Mark Clubb, Executive Chairman of
TEAM, said: "We have significant
growth opportunities ahead. Britain has seen a material exodus of
the wealthy following Brexit and tax reforms. According to a recent
report* Britain will lose 9,500 millionaires this year, more than
double the previous year and nearly seven times the number in 2022.
Critically for TEAM, they are re-locating to cities where we are
strong and can provide the financial advice and offshore services
they require. This is therefore an important tail-wind as we expand
our international platform servicing the financial needs of
expatriates not just from Britain but from all nationalities. With
AUM/A now close to 1 billion we are in a good position and will
look to build on this during the reminder of the financial year and
beyond." *Henley & Partners' "Private Wealth Migration Report
2024"
Financial Highlights
·
Revenues increased 116% to £4.1 million (HY 23:
£1.9 million)
·
Loss before tax of £1.0m (HY 23: Loss
£0.5m)
·
Group assets under management / advice up 87% to
£916m (HY 23: £493m) with £97 million in
model portfolios
·
Successful fund raise of £1.8 million: £1.3
million in new equity, £500,000 in a convertible loan
note
Operational
Highlights
·
Strategic focus on migrating assets under advice to assets
under management, primarily through TEAM Multi Asset Portfolio
Strategies (MPS), to drive future group profitability
·
Continued expansion of the number of financial advisors in
the International division and targeting ex-pat professional
clients working in Asia, Africa and the Middle East - team highly
motivated to introduce clients to TEAM AM services
·
Strong growth in model portfolio AuM, up 372% to £97 million
(Mar '23 £20 million), showing the benefits of vertical
integration
·
Launch of unitised version in H2 24 key to unlocking Team
International AuA for conversion into AuM at management fees of
0.5% - 1.5%
·
Excellent investment performance has underpinned positive
response to models by advisers and their clients
·
Jersey advisory integration complete, launched in Guernsey in
H2 24
Current
trading
·
Stable start to the beginning of H2
·
Progressing advanced discussions with a
strategic investor for additional funding and deeper
collaboration
For
further information, please contact:
Team
plc
|
Tel: +44 (0) 1534 877210
|
Mark Clubb / Matthew Moore
|
|
|
|
Strand
Hanson (Nominated Advisor)
|
Tel: +44 20 7409 3494
|
Richard Johnson / James Spinney / David
Asquith
|
|
|
|
Oberon Capital
(Joint Broker to TEAM)
Michael Seabrook, Adam Pollock, Jessica
Cave
|
Tel: +44 20 3179 0500
|
|
|
Hannam &
Partners (Financial Advisor to TEAM)
|
Tel: +44 20 7907 8500
|
Giles Fitzpatrick / Ernest Bell / Richard
Clarke
|
|
|
|
Novella
Communications (Financial PR)
|
Tel: +44 20 3151 7008
|
Tim Robertson / Safia Colebrook
|
team@novella-comms.com
|
|
|
|
About TEAM plc
TEAM plc is building a new wealth, asset
management and complementary financial services group. With a focus
on Jersey and International Finance Centres, the strategy is to
build local businesses of scale around TEAM plc's core skill of
providing investment management services. Growth will be achieved
via targeted and opportunistic acquisitions, team and individual
hires, collaboration with suitable partners, and by organic growth
and expansion.
TEAM plc has three principal activities,
Investment Management, Advisory, and International.
Investment Management
provides discretionary investment management services, model
portfolios, bespoke portfolios and fund management services via
fixed income and equity fund vehicles. Total assets managed as at
30 September 2023 were £289 million (30 September 2022: £233
million).
Advisory - primarily
for individuals resident in Jersey, investment consultancy services
to wealthy individuals and trusts and treasury advisory service for
institutions, professional advisers, trustees and high net worth
individuals. Total assets advised on as at 30 September 2023 were
£365 million (30 September 2022: £318 million).
International is the
Group's financial advisory, fund distribution division and
insurance brokering services covering Africa, the Middle East and
Asia. Total assets advised on as at 30 September 2023 were £180
million (30 September 2022: £nil).
At 30 September 2023, the Group had 87 staff
(30 September 2022: 33), with 52 in the UAE, 29 in Jersey, 3 in
Singapore and 1 each in the UK, South Africa and Malaysia (30
September 2022: 32 in Jersey and 1 in the UK). There were also 10
self-employed advisers, 8 with BVI contracts and 2 in
Jersey.
Executive Chairman's
Statement
Dear Shareholders,
The six months leading up to the end of March
2024, were highly active. We completed the acquisition of Neba
businesses on December 12, 2023, enhancing our international
expansion. John Beverley, Neba's founder, is now CEO of our offices
in Dubai, Abu Dhabi, Kenya, South Africa, Malaysia, and Singapore.
He is also a substantial shareholder and between us we own 20% of
the business.
At the start of the year, we focused on
remediating the Globaleye businesses acquired in 2023. We are
nearing the end of this process. Our recruitment efforts have
intensified, beginning with the appointment of Bart Kendall as
Managing Director for the Middle East and Will Price as Managing
Director for Asia. The management structure is evolving
positively.
We have new advisors set to join before the end
of September. Our goal is to expand from around 70 advisors to over
100 within the next 12 months, with a promising pipeline already
committed.
To meet cashflow requirements, we initiated a
fund raise in March 2024, supported by our new Nomad, Strand
Hanson, and brokers Oberon Capital. Despite challenging market
conditions we successfully raised £1.8 million: £1.3 million in new
equity at 20p and £500,000 in a convertible loan note from Harwood
Capital. Further details on funding requirements are set out
in the Operational and Financial Review.
Since then, we are pleased to announce that we
are in ongoing discussions with a strategic investor for additional
funding and deeper collaboration. These talks underscore our
commitment to securing partnerships that align with our long-term
vision and capacity to deliver meaningful growth and value to
shareholders. The potential investor is expected to bring both
financial investment and strategic insights and expertise that will
bolster our international market position and drive repeatable
growth, although there is no guarantee that the discussions will
lead to a successful conclusion. We remain dedicated to
transparency throughout this process and look forward to updating
shareholders on developments. This dialogue is a testament to the
robust foundations we have built and our focus on future
opportunities in the international financial services
markets.
Our investment strategy focuses on migrating
assets under advice to assets under management, primarily through
TEAM Multi Asset Portfolio Strategies (MPS), which will drive
future group profitability. The MPS Investment performance remains
strong, and assets under management have grown to £97
million.
Period to 31 March 2024
|
3
month
|
1
year
|
3
year
|
5
year
|
Multi Asset Growth
|
6.2%
|
12.4%
|
19.3%
|
41.8%
|
MPI High Risk
|
4.4%
|
11.4%
|
13.1%
|
32.3%
|
Outperformance
|
1.8%
|
1.0%
|
6.3%
|
9.6%
|
Multi Asset Balanced
|
6.0%
|
10.7%
|
17.5%
|
27.7%
|
MPI Medium Risk
|
2.5%
|
8.0%
|
7.9%
|
21.5%
|
Outperformance
|
3.5%
|
2.7%
|
9.6%
|
6.2%
|
Multi Asset Cautious
|
4.8%
|
9.1%
|
13.1%
|
17.6%
|
MPI Low Risk
|
1.4%
|
6.4%
|
2.8%
|
10.3%
|
Outperformance
|
3.4%
|
2.7%
|
10.3%
|
7.3%
|
We hope that Neba Private Clients and
Concentric Guernsey will be significant supporters of the TEAM MPS
given its strong performance and anticipate funds to flow once the
investment models are unitized, which we expect to be in Q4 2024.
The UCITS unitization project will open new distribution channels,
especially for the clients of our International advisers. Waystone
in Dublin will handle the fund and trust administration.
We have historic annualized revenues now
exceeding £9 million and approaching £1 billion in assets under
advice/management, primarily in regions experiencing significant
wealth growth and our clients typically have high disposable
incomes.
We have significant growth opportunities ahead.
Britain has seen a material exodus of the wealthy following Brexit
and recent tax reforms. According to Henley & Partners'
"Private Wealth Migration Report 2024," Britain will lose 9,500
millionaires this year, more than double the previous year and
nearly seven times the number in 2022( www.henleyglobal.com ). Britain
is second only to China for high-net-worth outflows. But it's not
just the British and Chinese on the move. In 2024, a record 128,000
millionaires are expected to relocate, up from 120,000 in 2023 and
110,000 pre-pandemic in 2019.
Wealthy Britons and other nationalities are
flocking to the UAE and Singapore as well as other favourable tax
and investor-friendly regulation "Safe Haven's". These "Expats" or
individuals living outside their native country are moving abroad
temporarily or permanently for tax, work, lifestyle, retirement, or
other reasons. This year, Singapore will gain 3,500 millionaires
while the UAE welcomes 6,700. The UAE is rolling out the red carpet
for the wealthy with a golden visa programme offering a 10-year
renewable residence for a GBP500,000 property investment and no
income, capital gains or inheritance taxes. The UAE now boasts 20
billionaires and 116,500 millionaires. Up and coming are Saudi
Arabia, Malta, Mauritius, Monaco, Spain, France and New Zealand.
All of them are projected to see net inflows of over 200
millionaires each in 2024.
The wealthy are all heading to regions where
TEAM can cover their needs, they are going to require financial
advice and offshore services, including asset and cash management,
life insurance, tax and retirement planning, estate planning,
mortgages and loans, property ownership advice, trusts and/or
foundations and currency exchange.
I call these pools of expertise and services
TEAM "castles", all focused on delivering strong, regulated
financial services for global clients and locals, emphasizing
continuity and expertise, ensuring strong client-advisor
relationships and spanning borders and regulatory environments.
These castles are growing in value, just on a replacement cost
basis, let alone availability as jurisdictions tighten regulations
and law. They have moats which are getting deeper and
wider.
The TEAM strategy for growth? More castles and
more advisers, with a focus on recruitment, which should deliver a
growing base of clients with more disposable income.
Clients have strong relationships with their
financial advisor and appreciate continuity in financial planning
and investment strategies. By being part of a network, the advisor
or client can maintain these relationships even if they move
locations or switch firms within the network. Clients also have the
security of being part of a London Stock Exchange listed "castle".
For recruitment, few alternatives have the spread of network and
are listed. That provides transparency, governance and
security.
I remain confident in being able to achieve our
short and longer-term prospects. Achieving breakeven remains the
immediate aim alongside the goal of scalability and "escape
velocity" targeting growing the business to £20 million in
revenues, 30%+ EBITDA margin, and £4 billion in AUA/M.
Thank you.
Sincerely,
Mr J M Clubb
Executive Chair
26 June 2024
Operational and Financial Review
Review of the results for the
period
The table below shows the Group's financial
performance for the six months to 31 March 2024 along with prior
comparative periods and provides a reconciliation to the underlying
results, which the Company considers to be an appropriate
reflection of the Group's underlying trading, and the statutory
result.
The first six months of the financial year
include a full contribution from Globaleye, acquired in June 2023,
and a part contribution from Neba, acquired in December 2023. These
acquisitions account for most of the changes from the previous
interim results to March 2023.
Revenues increased 116% to £4.1 million from
£1.9 million while the underlying loss before tax of the group was
£1.0 million, an increase from a loss of £0.4 million. Underlying
adjustments of £21,000, reflecting non-cash expenses, were down
from £132,000. The loss per share for the period was
3.5 pence (H1 23: 2.3 pence) and no dividend is recommended at this
point in the Company's development (H1 23: nil).
|
6 months ended 31 Mar 2024
(unaudited)
|
6 months ended 31 Mar 2023
(unaudited)
|
12 months ended 30 Sept 2023
(audited)
|
|
£'000
|
£'000
|
£'000
|
Revenue
|
4,106
|
1,898
|
5,323
|
Direct Cost
|
(1,490)
|
(228)
|
(924)
|
Contribution
|
2,616
|
1,670
|
4,399
|
Total staff costs
|
(2,260)
|
(1,393)
|
(3,359)
|
Total non-staff costs
|
(1,348)
|
(651)
|
(1,727)
|
Underlying profit before tax
|
(992)
|
(374)
|
(687)
|
Underlying adjustments
|
(21)
|
(132)
|
244
|
Loss before tax
|
(1,013)
|
(506)
|
(443)
|
Tax
|
3
|
7
|
(2)
|
Loss for the period
|
(1,010)
|
(499)
|
(445)
|
Client assets
The table below shows the opening
and closing client asset position and the movements during the
period broken down by division.
Division
|
Investment
Management
|
Advice and
Consultancy
|
International
|
Total
|
|
£'m
|
£'m
|
£'m
|
£'m
|
As
at 30 Sept 2023
|
289
|
263*
|
180
|
732
|
Inflows
|
22
|
6
|
60
|
88
|
Outflows
|
(5)
|
(10)
|
-
|
(14)
|
Other
|
15
|
13
|
-
|
27
|
From acquired businesses
|
-
|
-
|
84
|
84
|
As
at 30 March 2024
|
321
|
271
|
324
|
916
|
|
|
|
|
|
Growth in period
|
11%
|
3%
|
80%
|
25%
|
Net inflows (£'m)
|
18
|
- 4
|
60
|
73
|
Inflow as % of opening balance
|
6%
|
-2%
|
33%
|
10%
|
*£55 million of client assets where
an investment reporting service is provided have been excluded from
the A&C total.
Within the Investment Management
division the model portfolios, now available on five investment
platforms, increased from £20 million (H1 23) to £97 million.
Material flows into the models are expected from our newly
established Guernsey Advice operation, and as the portfolios become
available in a single UCITS structure, where they become suitable
for many of our International clients.
Revenues
Total revenues rose 116% to £4.1
million (H1 23: £1.9 million). Investment and fund management
("IFM") revenues rose 23% to £0.6 million, reflecting the higher
yield on the incremental asset managed in the models and the 11%
increase in AUM. Advisory and Consultancy ("A&C") revenues fell
36% to £1.0 million (H1 23: £1.6 million), primarily as there was a
one-off settlement of £0.6 million received in the prior period.
Excluding this item revenues were up 3%. International recorded its
first H1 revenues of £2.5 million (H1 23: nil).
Costs
Direct costs, being the cost of commissions
paid to International advisers, and the custody and trading costs
incurred for certain clients in IFM, rose significantly from £0.2
million to £1.5 million. This is a feature of the International
business model, where the self-employed adviser receive no or small
salaries, and high commission shares on business written. The
indirect cost, being primarily the costs of staff, office and
technology, rose to £3.6 million, up 76% on H1 23. Of this increase
of £1.6 million, £1.5 million was from International, with the
costs across the rest of the group falling by 2% despite inflation
running at over 7% in Jersey. This reflects the cost cutting
measures taken in the consolidation of the A&C division (down
9%) and in IFM (down 12%).
Loss before tax
The resulting loss before tax for the half year
was £1.0 million (H1 23: £0.5 million), with the underlying
position a loss of £1.0 million (H1 23: £0.4 million)
The underlying adjustments are shown in the
below table:
|
6 months ended 31 Mar 2024
(unaudited)
|
6 months ended 31 Mar 2023
(unaudited)
|
12 months ended 30 Sept 2023
(audited)
|
|
£'000
|
£'000
|
£'000
|
Underlying (loss) before tax
|
(992)
|
(374)
|
(687)
|
Amortisation of client
relationships
|
(497)
|
(497)
|
(995)
|
Acquisition related
expenses
|
(52)
|
-
|
(222)
|
Changes in deferred
consideration
|
670
|
452
|
1,680
|
Interest and depreciation
|
(142)
|
(87)
|
(219)
|
Total underlying adjustments
|
(21)
|
(132)
|
(682)
|
(Loss) before tax
|
(1,013)
|
(506)
|
(443)
|
Adjustments to the statutory loss have been
selected to give a more informative indication of the trading of
the group.
Amortisation of client relationships was
unchanged at £0.5 million. Acquisition related expenses incurred in
the period were £52,000 (H1 23: nil). Changes in deferred
consideration were £0.7 million (H1 23: £0.5 million) of which £0.5
million was from the fall in the value of the 3.2 million shares
due to be issued for the consideration to acquire Neba, and £0.2
million from the fall in the expected revenue related deferred
consideration for the Omega acquisition.
Segmental analysis
The Group operates in three divisions, supported
by the PLC head office. International is a new division following
the Globaleye and Neba acquisitions:
6 months ended
31 Mar 2024
(unaudited)
|
IFM
|
A & C
|
International
|
Group and consolidation
adjustments
|
Group
|
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
Revenue
|
630
|
998
|
2,477
|
1
|
4,106
|
Direct Cost
|
(209)
|
(6)
|
(1,261)
|
(15)
|
(1,490)
|
Contribution
|
421
|
992
|
1,216
|
(14)
|
2,616
|
Indirect Costs
|
(649)
|
(1,025)
|
(1,522)
|
(412)
|
(3,608)
|
Underlying
(loss) before tax
|
(228)
|
(33)
|
(305)
|
(426)
|
(992)
|
Underlying adjustments
|
-
|
-
|
-
|
(21)
|
(21)
|
(Loss) before
tax
|
(228)
|
(33)
|
(305)
|
(447)
|
(1,013)
|
Tax
|
4
|
-
|
(1)
|
-
|
3
|
(Loss) for the
period
|
(224)
|
(33)
|
(306)
|
(447)
|
(1,010)
|
|
|
|
|
|
|
|
|
6 months ended
31 Mar 2023
(unaudited)
|
IFM
|
A & C
|
Group and consolidation
adjustments
|
Group
|
|
£'000
|
£'000
|
£'000
|
£'000
|
Revenue
|
511
|
1,548
|
(161
|
1,898
|
Direct Cost
|
(200)
|
-
|
(28)
|
(228)
|
Contribution
|
311
|
1,548
|
(189)
|
1,670
|
Indirect Costs
|
(715)
|
(1,166)
|
(163)
|
(2,044)
|
Underlying
(loss)/profit before tax
|
(404)
|
382
|
(352)
|
(374)
|
Underlying adjustments
|
-
|
-
|
(132)
|
(132)
|
Profit before
tax
|
(404)
|
382
|
(484)
|
(506)
|
Tax
|
43
|
(36)
|
-
|
7
|
(Loss)/profit
for the period
|
(361)
|
346
|
(484)
|
(499)
|
12 months
ended 30 Sept 2023 (audited)
|
IFM
|
A & C
|
International
|
Group and consolidation
adjustments
|
Group
|
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
Revenue
|
951
|
3,039
|
1,332
|
1
|
5,323
|
Direct Cost
|
(372)
|
-
|
(497)
|
(55)
|
(924)
|
Contribution
|
579
|
3,039
|
835
|
(54)
|
4,399
|
Indirect Costs
|
(1,416)
|
(2,052)
|
(967)
|
(651)
|
(5,086)
|
Underlying
(loss) /profit before tax
|
(837)
|
987
|
(132)
|
(705)
|
(687)
|
Underlying adjustments
|
-
|
-
|
-
|
244
|
244
|
(Loss)/ Profit
before tax
|
(837)
|
987
|
(132)
|
(461)
|
(443)
|
Tax
|
(4)
|
5
|
(3)
|
-
|
(2)
|
(Loss)/ profit
for the year
|
(841)
|
992
|
(135)
|
(461)
|
(445)
|
|
|
|
|
|
|
|
Taxation
Regulated financial services businesses in
Jersey pay a flat corporation tax rate of 10%. The treasury
services business is not regulated and has a nil tax rate. The
International entities operate predominantly in nil corporation tax
environments.
Earnings per share
The Groups underling loss per share was 3.5
pence, an increase of 52% from a loss per share of 2.3 pence in H1
23.
Financial position and going
concern
The Group's cash position has increased from
£0.9 million to £1.5 million. As at 31 March 2024 the regulated
entities within the Group all held in excess of the required level
of regulatory assets.
The Directors have prepared financial
projections along with sensitivity analyses of reasonably plausible
alternative outcomes, covering clients and assets, cost inflation
and take up of group services. The forecasts demonstrate that the
Directors have a reasonable expectation that the Group will require
additional financial resources to meet working capital requirements
and the cash-settled deferred consideration liabilities due in the
financial year ending 30 September 2025. The requirement for
additional fundraising has been highlighted as a feature of the
business model for TEAM in the initial years on the business plan.
The placing and subscription in May 2024, which raised £1.3 million
and an additional £0.5 million via a convertible loan note, has
enabled the business to recapitalise the Globaleye entities and top
up the regulatory capital of the nine regulated entities. Further
external funding will be required to see the business through to a
cash flow positive state and to fund all deferred consideration
payments and the Board is in advanced discussions with various
parties to provide such funding. The track record of TEAM in
fund raising from the current and potential shareholder base, and
the ongoing funding discussions, gives the Board sufficient
confidence to consider the going concern basis to be appropriate
for the accounts.
Dividend
The Group is at the early stages of building the
business, and so is consuming capital. No dividends are expected to
be paid until underlying profits are made.
Mr M C Moore
CFO and COO
26 June 2024
Consolidated Statement of Comprehensive
Income
|
|
6 months ended
|
6 months
ended
|
12 months
ended
|
|
|
31 Mar 2024
|
31 Mar
2023
|
30 Sept
2023
|
|
|
(unaudited)
|
(unaudited)
|
(audited)
|
|
Note
|
£'000
|
£'000
|
£'000
|
Revenues
|
3
|
4,106
|
1,898
|
5,323
|
Cost of sales
|
3
|
(1,490)
|
(228)
|
(924)
|
Operating expenses
|
3
|
(4,236)
|
(2,610)
|
(6,474)
|
Operating
(loss)
|
|
(1,620)
|
(940)
|
(2,075)
|
|
|
|
|
|
Operating
(loss) before exceptional items
|
(1,568)
|
(940)
|
(1,853)
|
Exceptional
items
|
8
|
(52)
|
-
|
(222)
|
Operating
(loss) after exceptional item
|
(1,620)
|
(940)
|
(2,075)
|
|
|
|
|
|
Fair value gains on financial
instruments
|
5
|
670
|
452
|
1,680
|
Share award expense
|
|
-
|
-
|
(13)
|
Other charges
|
|
(63)
|
(18)
|
(35)
|
(Loss) on
ordinary activities before tax
|
(1,012)
|
(506)
|
(443)
|
Taxation
|
|
(3)
|
(7)
|
2
|
(Loss) for the
year/ period and total comprehensive loss
|
(1,010)
|
(499)
|
(445)
|
|
|
|
|
|
|
|
|
|
|
Loss per share (basic and diluted)
|
11
|
(3.5p)
|
(2.3p)
|
(2.0p)
|
The accompanying notes on pages 15 to 24 form an
integral part of these Condensed consolidated financial
statements.
Consolidated Statement of Financial Position
|
|
31 Mar 2024
|
31 Mar
2023
|
30 Sept
2023
|
|
|
(unaudited)
|
(unaudited)
|
(audited)
|
|
Note
|
£'000
|
£'000
|
£'000
|
ASSETS
Non-current
assets
|
|
|
|
|
Intangible assets
|
|
5,888
|
6,883
|
6,386
|
Goodwill
|
6
|
7,092
|
1,896
|
6,012
|
Property, plant & equipment
|
7
|
65
|
79
|
80
|
Right of use asset
|
7
|
503
|
615
|
574
|
Deferred tax
|
|
157
|
199
|
152
|
Long term deposit
|
|
74
|
67
|
71
|
|
|
13,780
|
9,739
|
13,275
|
Current
assets
|
|
|
|
|
Trade, other receivables and
prepayments
|
|
880
|
961
|
731
|
Cash and cash equivalents
|
4
|
1,522
|
864
|
1,938
|
|
|
2,402
|
1,825
|
2,669
|
Total
assets
|
|
16,182
|
11,564
|
15,944
|
LIABILITIES
|
|
|
|
|
Amounts
falling due within one year
|
|
|
|
Trade and other payables
|
|
(1,957)
|
(565)
|
(2,080)
|
Lease liability
|
|
(94)
|
(110)
|
(152)
|
Deferred consideration
|
5
|
(1,320)
|
(1,338)
|
(3,756)
|
|
|
(3,371)
|
(2,013)
|
(5,988)
|
Amounts
falling due after one year
|
|
|
|
Lease liability
|
(446)
|
(555)
|
(441)
|
Loan notes
|
(1,184)
|
(838)
|
(425)
|
Deferred
consideration
5
|
(1,115)
|
-
|
(865)
|
|
|
(2,745)
|
(1,393)
|
(1,731)
|
Total
liabilities
|
|
(6,116)
|
(3,406)
|
(7,719)
|
Total net
assets
|
|
10,066
|
8,158
|
8,225
|
|
|
|
|
|
EQUITY
|
|
|
|
|
Stated capital
|
9
|
15,200
|
12,349
|
12,349
|
Share award reserve
|
|
13
|
-
|
13
|
Retained earnings
|
|
(5,147)
|
(4,191)
|
(4,137)
|
Total
Equity
|
|
10,066
|
8,158
|
8,225
|
The condensed consolidated interim financial
statements were approved and authorised for issue by the board of
the directors on 26 June 2024 and were signed on its behalf
by:
Mr J M
Clubb
Mr
M C Moore
Executive
Chair
CFO and COO
Consolidated Statement of Cash Flows
|
|
6 months ended
|
6 months ended
|
12 months ended
|
|
|
31 Mar 2024
|
31 Mar 2023
|
30 Sept 2023
|
|
|
(unaudited)
|
(unaudited)
|
(audited)
|
|
Note
|
£'000
|
£'000
|
£'000
|
Cash flows
from operating activities
|
|
|
|
(Loss) for the year before tax
|
|
(1,013)
|
(506)
|
(443)
|
Adjustments to cash flows from non-cash
items:
|
|
|
|
Depreciation and amortisation
|
|
576
|
567
|
1,166
|
Finance costs
|
|
64
|
18
|
35
|
Fair value (gains) on financial
instruments
|
|
(670)
|
(452)
|
(1,680)
|
Share award expense
|
|
-
|
-
|
13
|
Trade and other
receivables
|
|
(152)
|
87
|
(336)
|
Trade and other payables
|
|
21
|
(494)
|
425
|
Net cash
outflow from operating activities
|
(1,174)
|
(780)
|
(820)
|
|
|
|
|
|
Cash flows
from investing activities
|
|
|
|
Payment of deferred consideration
|
-
|
-
|
(20)
|
Acquisition of property, plant and
equipment
|
-
|
(30)
|
(45)
|
Net cash
outflow from investing activities
|
-
|
(30)
|
(65)
|
|
|
|
|
|
Cash flows
from financing activities
|
|
|
|
Lease liability paid
|
|
(58)
|
(73)
|
(201)
|
Proceeds from loan notes issued
|
|
735
|
-
|
425
|
Net cash flow
from financing activities
|
677
|
(73)
|
224
|
|
|
|
|
|
Net
decrease in cash and cash equivalents
|
(497)
|
(883)
|
(661)
|
Cash and cash equivalents from at beginning of
period/ year
|
1,938
|
1,747
|
1,747
|
Cash and cash equivalents from acquired
subsidiaries
|
81
|
-
|
852
|
Cash and cash
equivalents at end of period/ year
|
1,522
|
864
|
1,938
|
Consolidated Statement of Changes in Equity
|
|
Stated
|
Share award
|
Retained
|
Total
|
|
|
capital
|
Reserve
|
earnings
|
equity
|
|
|
£'000
|
£'000
|
£'000
|
£'000
|
|
|
|
|
|
|
At 1 October 2022
|
|
12,349
|
-
|
(3,629)
|
8,657
|
(Loss) for the period
|
|
-
|
-
|
(499)
|
(499)
|
At 31 March 2023
|
|
12,349
|
-
|
(4,191)
|
8,158
|
|
|
|
|
|
|
|
|
Stated
|
Share award
|
Retained
|
|
|
|
capital
|
reserve
|
earnings
|
Total
|
|
|
£'000
|
£'000
|
£'000
|
£'000
|
|
|
|
|
|
|
At 1 April 2023
|
|
12,349
|
-
|
(4,191)
|
8,158
|
Profit for the period
|
|
-
|
-
|
54
|
54
|
Share award for the year
|
|
-
|
13
|
-
|
13
|
At 30 September 2023
|
|
12,349
|
13
|
(4,137)
|
8,225
|
|
|
|
|
|
|
|
|
Stated
|
Share award
|
Retained
|
|
|
|
capital
|
reserve
|
earnings
|
Total
|
|
|
£'000
|
£'000
|
£'000
|
£'000
|
|
|
|
|
|
|
At 1 October 2023
|
|
12,349
|
13
|
(4,137)
|
8,225
|
New share Capital
|
|
2,851
|
-
|
-
|
2,851
|
(Loss) for the period
|
|
-
|
-
|
(1,010)
|
(1,010)
|
At 31 March 2024
|
|
15,200
|
13
|
(5,827)
|
10,066
|
Notes to the Consolidated Financial
Statements
1. General
information
TEAM plc (the "Company") is the parent company
of a group of companies (the "Group") which offers a range of
investment management, fund management, financial planning and
other financial services to retail, professional and institutional
clients.
The Company is a public limited company and is
incorporated and domiciled in Jersey, Chanel Islands. The address
of the registered office is 6 Caledonia Place, St Helier, Jersey,
JE2
2. Accounting
policies
Basis of preparation and accounting
policies
The accounting policies and estimates adopted
are consistent with those of the previous financial period as
disclosed in the 2023 Report and Audited Consolidated Financial
Statements.
The financial information in this interim
report has been prepared in accordance with the disclosure
requirements of the AIM Rules for Companies and the recognition and
measurements of International Financial Reporting Standards
("IFRS"), as adopted by the European Union ("EU"). They have been
prepared on a going concern basis with reference to the accounting
policies and methods of computation and presentation set out in the
Group's Consolidated financial statements for the year ended 30
September 2023.
The Interim Condensed consolidated financial
statements do not include all the information and disclosures
required in the annual financial statements and should be read in
conjunction with the Group's audited financial statements for the
year ended 30 September 2023, which have been prepared in
accordance with International Financial Reporting Standards
("IFRS") as issued by the International Accounting Standards Board
("IASB"), the interpretations issued by the International Financial
Reporting Interpretations Committee ("IFRIC") and the requirements
of Companies (Jersey) Law 1991.
The information relating to the six months
ended 31 March 2024 is unaudited and does not constitute statutory
financial statements. The Group's Consolidated financial statements
for the year ended 30 September 2023 have been reported on by the
Group's auditor. The report of the auditor was
unqualified.
Consolidated financial
statements
The consolidated financial statements
incorporate the financial statements of the Company and subsidiary
entities controlled by the Company made up to 31 March 2024.
Control is achieved where the Company is exposed, or has rights, to
variable returns from its involvement with an investee company and
has the ability to affect those returns through its power over the
other entity; power generally arises from holding a majority of
voting rights.
Notes to the Consolidated Financial
Statements
3. Operating Segments
Following the acquisitions of the
subsidiaries, the Group now identifies three principal operating
segments, Investment and Fund Management (IFM) and Advisory and
Consultancy (AC), and International, and a number of plc and
group activities that have been aggregated into one operating
segment.
IFM provides
investment management services for individuals, trusts,
sovereign agencies and corporations, and fund management services
to for a range of fund vehicles. AC
provides personal financial advice, investment consulting, and
treasury advisory services. Both segments are located in Jersey,
Channel Islands. International provides personal financial advice
and insurance services to expatriates predominantly in Asia and
Africa.
No customer represents more than
10% of group revenues (FY 23: nil)
The following table represents
revenue and cost information for the Group's business
segments
6 months ended
31 Mar 2024
(unaudited)
|
Investment management
|
Advisory and
Consultancy
|
International
|
Group and consolidation
adjustments
|
Group
|
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
Revenue
|
630
|
998
|
2,477
|
1
|
4,106
|
Direct Cost
|
(209)
|
(6)
|
(1,261)
|
(15)
|
(1,490)
|
Contribution
|
421
|
992
|
1,216
|
(14)
|
2,5616
|
Indirect Costs
|
(649)
|
(1,025)
|
(1,522)
|
(412)
|
(3,608)
|
Underlying
(loss) before tax
|
(228)
|
(33)
|
(305)
|
(426)
|
(992)
|
Amortisation of an acquired clients
relationships
|
-
|
-
|
-
|
(497)
|
(497)
|
Acquisition costs
|
-
|
-
|
-
|
(52)
|
(52)
|
Deferred consideration fair value
adjustments
|
-
|
-
|
-
|
670
|
670
|
Interest payments
|
|
|
|
(63)
|
(63)
|
Net changes in the value of non-current
asset
|
-
|
-
|
-
|
(79)
|
(79)
|
(Loss) before
tax
|
(228)
|
(33)
|
(305)
|
(447)
|
(1,013)
|
Tax
|
4
|
-
|
(1)
|
-
|
3
|
Loss) for the
period
|
(223)
|
(33)
|
(307)
|
(447)
|
(1,010)
|
Notes to the Consolidated Financial
Statements
3. Operating Segments
(continued)
6 months ended
31 Mar 2023
(unaudited)
|
Investment management
|
Advisory
|
Group and consolidation
adjustments
|
Group
|
|
£'000
|
£'000
|
£'000
|
£'000
|
Revenue
|
511
|
1,548
|
(161)
|
1,898
|
Direct Cost
|
(200)
|
-
|
(28)
|
(228)
|
Contribution
|
311
|
1,548
|
(189)
|
1,670
|
Indirect Costs
|
(715)
|
(1,166)
|
(163)
|
(2,044)
|
Underlying
(loss)/profit before tax
|
(404)
|
382
|
(352)
|
(374)
|
Amortisation of an acquired clients
relationships
|
-
|
-
|
(497)
|
(497)
|
Changes in fair value
|
-
|
-
|
(18)
|
(18)
|
Realised gain on investments
|
-
|
-
|
452
|
452
|
Net changes in the value of non-current
asset
|
-
|
-
|
(69)
|
(69)
|
(Loss)/profit
before tax
|
(404)
|
382
|
(484)
|
(506)
|
Tax
|
43
|
(36)
|
-
|
7
|
Profit/(loss)
for the period
|
(361)
|
346
|
(484)
|
(499)
|
12 months
ended 30 Sept 2023 (audited)
|
Investment management
|
Advisory
|
International
|
Group and consolidation
adjustments
|
Group
|
|
£'000
|
£'000
|
|
£'000
|
£'000
|
Revenue
|
951
|
3,039
|
1,332
|
1
|
5,323
|
Direct Cost
|
(372)
|
-
|
(497)
|
(55)
|
(924)
|
Contribution
|
579
|
3,039
|
835
|
(54)
|
4,399
|
Indirect Costs
|
(1,416)
|
(2,052)
|
(967)
|
(651)
|
(5,086)
|
Underlying
(loss)/profit before tax
|
(837)
|
987
|
(132)
|
(705)
|
(687)
|
Acquisition related costs
|
-
|
-
|
-
|
(222)
|
(222)
|
Amortisation of an acquired clients
relationships
|
-
|
-
|
-
|
(995)
|
(995)
|
Interest payments
|
-
|
-
|
-
|
(35)
|
(35)
|
Deferred consideration fair value
adjustments
|
-
|
-
|
-
|
1,680
|
1,680
|
Share award expense
|
-
|
-
|
-
|
(13)
|
(13)
|
Net changes in the value of non-current
asset
|
-
|
-
|
-
|
(171)
|
(171)
|
(Loss)/profit
before tax
|
(837)
|
987
|
(132)
|
(461)
|
(443)
|
Tax
|
(4)
|
5
|
(3)
|
-
|
(2)
|
Loss)/profit
for the year
|
(841)
|
992
|
(135)
|
(461)
|
(445)
|
|
|
|
|
|
|
|
|
Notes to the Consolidated Financial
Statements
4. Cash and cash
equivalents
Cash and cash equivalents comprise
cash on hand and call deposits, and other short-term highly liquid
investments that are readily convertible to a known amount of cash
and are subject to an insignificant risk of change in
value.
5. Deferred Consideration
|
|
As at
|
As
at
|
As
at
|
|
|
31 Mar 2024
£'000
|
31 Mar
2023
£'000
|
30 Sept
2023
£'000
|
Opening balance
|
|
4,621
|
2,649
|
2,649
|
Additions in the period
|
|
1,375
|
-
|
3,672
|
Deferred consideration paid/settled
in period
|
|
(2,891)
|
(20)
|
(20)
|
Adjustments in fair value during the
period
|
|
(670)
|
(453)
|
(1,680)
|
Closing balance
|
|
2,435
|
2,176
|
4,621
|
|
|
|
|
|
Deferred consideration split
|
|
31 Mar 2024
£'000
|
31 Mar
2023
£'000
|
30 Sept
2023
£'000
|
Equity consideration
|
|
997
|
973
|
1,263
|
Cash consideration
|
|
1,438
|
1,203
|
1,386
|
Total deferred
consideration
|
|
2,435
|
2,176
|
2,649
|
Deferred consideration outstanding
at the period end relates to the amounts owed to the previous
shareholders following the acquisitions of Omega Financial Services
Limited in the financial year ended 30 September 2022 and NEBA
Financial Services in the financial period ended 31 March
2024.
Additional deferred consideration
in the period to 31 March 2024 relates to the acquisition of the
NEBA Financial Services group for £1,375,246.
During the period to 31 March 2024,
£2,891,000 of deferred consideration was settled via share capital
issues to the previous shareholders of Concentric Group Limited and
Globaleye Group worth £655,000 and £2,236,000
respectively.
Amounts owed via equity settlement
were revalued at the period end resulting in a gain of
£670,000.
Of the £2,435,000 due payable as at
31 March 2024, £1,115,000 is due payable in more than one
year.
Notes to the Consolidated Financial
Statements
6. Goodwill
|
|
As at
|
As
at
|
As
at
|
|
|
31 Mar 2024
£'000
|
31 Mar
2023
£'000
|
30 Sept
2023
£'000
|
Opening balance
|
|
6,012
|
1,896
|
1,895
|
Acquisitions during the
period
|
|
1,080
|
-
|
4,117
|
Closing balance
|
|
7,092
|
1,895
|
6,012
|
Goodwill is assessed annually for impairment and
the recoverability will be assessed as part of the full year
financial statements and audit at 30 September 2024. Goodwill added
during the period relates to the acquisition of NEBA Financial
Services.
7. Property, plant and
equipment
|
|
|
|
|
|
|
Right
of
|
Equipment
|
Computer
|
Leasehold
|
|
|
use assets
|
&
fixtures
|
Hardware
|
Improvements
|
Total
|
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
Cost
|
|
|
|
|
|
At 1 October 2023
|
800
|
67
|
81
|
2
|
950
|
Additions
|
-
|
-
|
-
|
-
|
-
|
Disposals
|
-
|
-
|
-
|
-
|
-
|
At 31 March 2024
|
800
|
67
|
81
|
2
|
950
|
Depreciation
|
|
|
|
|
|
At 1 October 2023
|
227
|
28
|
40
|
1
|
296
|
Disposals
|
-
|
-
|
-
|
-
|
-
|
Charge for the year
|
63
|
14
|
2
|
-
|
89
|
At 31 March 2024
|
297
|
19
|
32
|
1
|
349
|
Carrying Amount
|
|
|
|
|
At 31 March 2024
|
503
|
25
|
39
|
2
|
567
|
|
|
|
|
|
|
At 30 September 2023
|
573
|
39
|
41
|
1
|
654
|
The right-to-use asset balance is
made up of three properties across the Group. The three properties
are:
- 6 Caledonia
Place, St Helier, Jersey, JE2 3NG. The
lease term ends on 30 April 2030.
- Ground Floor, 3
Mulcaster Street, St Helier, Jersey, JE2 3NJ. The lease term ends on 23 March 2026.
- Third Floor,
Conway House, St Helier, Jersey, JE2 3NT. The lease term ends on 31
October 2027.
Notes to the Consolidated Financial
Statements
8. Exceptional items
|
|
6 months
ended
|
6 months
ended
|
12 months
ended
|
|
|
31-Mar-24
|
31-Mar-23
|
30 Sept
2023
|
(unaudited)
|
(unaudited)
|
(audited)
|
|
|
£'000
|
£'000
|
£'000
|
Acquisition related costs
|
|
52
|
-
|
222
|
|
|
52
|
-
|
222
|
9. Stated capital
|
|
As at
|
As
at
|
As
at
|
31 Mar 2024
|
31 Mar
2023
|
30 Sept
2023
|
|
|
No.
|
No.
|
No.
|
Allotted,
called and fully paid shares
|
|
|
|
Ordinary shares
|
|
21,976,145
|
21,967,145
|
21,976,145
|
Deferred consideration shares
issues
|
|
8,029,069
|
-
|
-
|
|
|
30,005,214
|
21,967,145
|
21,976,145
|
|
|
|
|
|
|
|
As at
|
As
at
|
As
at
|
31 Mar 2024
|
31 Mar
2023
|
30 Sept
203
|
|
|
£'000
|
£'000
|
£'000
|
Stated
capital
|
|
|
|
|
Opening balance
|
|
12,349
|
12,349
|
12,349
|
New Capital subscribed
|
|
2,851
|
-
|
-
|
|
|
15,200
|
12,349
|
12,349
|
10. Related party transactions
Key management personnel are the
same as the Directors.
There are no further related party
transactions to be disclosed during the year.
Notes to the Consolidated Financial
Statements
11. Earnings per share
The Group has calculated the weighted-average
number of outstanding ordinary shares for the period as
follows:
6
months ended 31 Mar 2023
|
|
Number of
shares
|
Time
weighting
|
Weighted average number of
shares
|
|
|
|
|
|
Balance brought forward
|
|
21,976,145
|
6/6
|
21,976,145
|
|
|
21,976,145
|
6 months
|
21,976,145
|
|
|
|
|
|
12 months
ended 30 Sept 2023
|
|
Number of
shares
|
Time
weighting
|
Weighted average number of
shares
|
|
|
|
|
|
Balance brought forward
|
|
21,976,145
|
12/12
|
21,976,145
|
|
|
21,976,145
|
12 months
|
21,976,145
|
|
|
|
|
|
6
months ended 31 Mar 2024
|
|
Number of
shares
|
Time
weighting
|
Weighted average number of
shares
|
|
|
|
|
|
Balance brought forward
|
|
21,976,145
|
6/6
|
21,976,145
|
Deferred consideration shares
issues
|
|
8,029,069
|
5/6
|
6,690,891
|
|
|
30,005,214
|
6 months
|
28,667,036
|
The Parent Company does not have any
contingent issuable shares as at year end, hence diluted loss per
share is the same as the basic loss per share
Notes to the Consolidated Financial
Statements
11. Earnings per share (continued)
Loss per
share
|
|
As at
|
As
at
|
As
at
|
|
|
31 Mar 2024
|
31 Mar
2023
|
30 Sept
2023
|
Loss per
share
|
|
|
|
|
(Loss) for the financial period and total
comprehensive loss (£'000)
|
(1,010)
|
(499)
|
(445)
|
Weighted average number of shares
|
28,667,036
|
21,976,145
|
21,976,145
|
Pence per
share
|
|
(3.5p)
|
(2.3p)
|
(2.0p)
|
|
|
|
|
|
Adjusted Loss
per share
|
|
As at
|
As
at
|
As
at
|
|
|
31 Mar 2024
|
31 Mar
2023
|
30 Sept
2023
|
|
|
£'000
|
£'000
|
£'000
|
Loss after
tax
|
|
(1,010)
|
(499)
|
(445)
|
|
|
|
|
|
Interest
|
|
64
|
18
|
35
|
Tax
|
|
(4)
|
(7)
|
2
|
Depreciation
|
|
79
|
69
|
171
|
Amortisation of intangible assets
|
|
497
|
497
|
995
|
Underlying
(loss) before tax
|
|
(374)
|
(78)
|
758
|
|
|
|
|
|
Acquisition related expenses
|
|
52
|
-
|
222
|
Share award expenses
|
|
-
|
-
|
13
|
Fair value adjustments
|
|
(670)
|
-
|
(1,680)
|
Adjusted
underlying (loss) before tax
|
|
(992)
|
(374)
|
(687)
|
|
|
|
|
|
|
|
|
|
|
|
|
As at
|
As
at
|
As
at
|
|
|
31 Mar 2024
|
31 Mar
2023
|
30 Sept
2023
|
Adjusted loss
per share
|
|
|
|
|
Adjusted underlying loss before tax
|
|
(992,000)
|
(374,000)
|
(687,000)
|
Weighted average number of shares
|
28,667,036
|
21,976,145
|
21,976,145
|
(Loss) in
Pence per share
|
|
(3.5p)
|
(1.7p)
|
(3.1p)
|
Notes to the Consolidated Financial
Statements
12. Dividends
No interim dividend has been paid or proposed
in respect of the current financial period (2023:
nil).
13. Events after the statement of financial position
date
Following the year end and share authorities
at the AGM on 17th April 2024, an application was made
to the London Stock Exchange for admission to trading on AIM for an
aggregate 9,549,300 new Ordinary Shares with trading effective on
19th April 2024.
The breakdown of the new Ordinary Shares was
as follows:
-
6,231,500 new Ordinary Shares pursuant to the Placing,
Subscription and WRAP Retail Offer, which raised £1.3 million for
the Group
-
3,281,250 new Ordinary Shares pursuant to conversion of the
£1.181m nil coupon convertible loan issued to John Beverley as
initial consideration for the acquisition of Neba Financial
Solutions Ltd and Neba Financial Solutions Private Ltd, announced
on 12 December 2023
-
36,550 new Ordinary Shares pursuant to the vesting of the
initial third of the Executive Director bonus awards for the
financial period to 30 September 2022 ("Awards"), comprising 13,158
new Ordinary Shares to Mark Clubb, Executive Chair, and 23,392 new
Ordinary Shares to Matthew Moore, Chief Financial
Officer.
In addition, a further £500,000 was raised
through the subscription for unsecured convertible loan notes at
par value by Growth Financial Services, a Harwood Capital
Management LLP subsidiary.
Notes to the Consolidated Financial
Statements
Company
number
129405
Nominated
Adviser
Strand Hanson Limited
26 Mount Row,
London
W1k 3SQ
Corporate
broker
Oberon Investments Limited
Nightingale House,
65 Curzon Street,
London
W1J 8PE
Financial
adviser
H&P Advisory Limited
2 Park Street
London
W1K 2HX
Bankers
HSBC Bank plc
15-17 King Street
Jersey
JE2 4WF
Registered
office
6 Caledonia Place
St Helier
Jersey
JE2 3NG