Commenting on the results, Jason Drummond, Executive Chairman said: “The first half of our financial year was one of significant change for Teathers. We successfully transformed the business into an AIM Investment Company and in line with our stated strategy launched the Teathers Crowd Equity App. Development of the App continues apace and we look forward to launching version 2, together with announcing a significant partnership for the operation of the App in the coming weeks.
Teathers Financial PLC has Told DirectorsTalk its interim results for the six months ended 30 April 2015.
-- Change of name to Teathers Financial plc -- Disposal of the legacy buttons and trimmings business
— Became an Investing Company under the AIM Rules with the Investing Policy approved by shareholders on 3 December 2014
-- GBP993,000 of equity funds raised
— A small number of investments made during the reporting period, with further investments made post period end
-- Launch of the Teathers crowd equity app at the UK Investor Show on 18 April 2015
— Net Asset Value increased by 140% to GBP1.2m (30 April 2014 GBP0.4m and 31 October 2014 GBP0.5m)
— Increase in cash at bank to GBP919,000 (30 April 2014: GBP174,599 and 31 October 2014 GBP260,258)
— Comprehensive loss for the period of GBP161,000 (30 April 2014: profit GBP200,832, which includes the GBP350,000 exceptional gain on disposal from the freehold premises)
The period under review was one of significant change for the Company. During the period the Company, with shareholder approval: disposed of its legacy loss making buttons and trimmings business; changed the name of the Company to Teathers Financial Plc; and implemented a new Investing policy.
During the period the Company raised a total of GBP993,000 though placings of GBP600,000 and GBP393,000, through the exercise of Company warrants at a price of 3p (GBP378,000) and 6p (GBP15,000), allowing the initial implementation of the Company’s Investing Policy.
The Investing Policy, which is to invest in AIM quoted companies either on flotation, through secondary offerings or by purchasing shares in the market and unquoted companies, joint ventures or projects which the Board believes will be seeking a quotation on AIM within 12 to 18 months of such investment, saw Teathers participate in several investments during the period. These included an investment in Tech Financial Plc, which was subsequently disposed of with a 21% return in profit. The Company continues to seek further investments in line with its Investing Policy.
The Company also progressed with the development of its proprietary Crowd Equity Service and Mobile App (“App”) that will provide Private investors access to placing’s and IPOs. The App was launched at the UK Investor Show on 18 April 2015.
The App, the development of which is now predominantly being outsourced, but for which Teathers owns the intellectual property rights, is designed to provide private investors with stock market and quoted company information and importantly to enable qualified users to buy shares in initial public offerings and placings at the same price and on the same deal terms as institutional investors.
The App is free to download from iTunes Connect (Apple), Google Play and Android. It should however be noted that the offering of equity placings through the App is an activity requiring an appropriate Financial Conduct Authority (“FCA”) regulated structure. To that end the Company is currently in contractual negotiations with a partner for the operation of the App, including the basis for the sharing of commissions, and anticipates that the App will be functional in the next few weeks.
Once operational, the App is intended to create a revenue stream for Teathers and will support Teathers’ main investing activities under its Investing Policy. It is still intended that investment through the App by qualifying investors will be commission free.
It is further anticipated that a “white label” version of the App will be offered to financial services organisations in the future, enabling them to offer equity placings they are conducting to their private investor clients. A number of expressions of interest have already been received in this technology and the Company believes that this could become an important source of revenue for Teathers in the future.
Results for the Period
Operational highlights for the first half of 2014:
The Company reports a comprehensive loss to members of GBP160,970 during the period. In the same period in the previous year, the Company reported a profit of GBP200,832 (which included an exceptional gain on disposal of the freehold building of GBP415,000). The cash balance was GBP916,000 (April 2014: GBP174,599) and Net Assets were GBP1,209,383 (April 2014 GBP345,388).
Post period end, Oliver Fattal was appointed Chief Operating Officer and an Executive Director of the Company, having previously held the position of Non-Executive Director.