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DJ Dozens Savings PLC Final Results

TIDMDS07

RNS Number : 3659G

Dozens Savings PLC

17 March 2020

Dozens Savings Plc

("DS" or "the Company")

FINAL RESULTS FOR THE PERIOD ENDED 30 SEPTEMBER 2019

The directors present the strategic report for the period from incorporation on 18 September 2018 to 30 September 2019.

Business Review

The Company was formed to issue debt securities (namely listed bonds paying a 5% fixed interest over a twelve-month period) to UK retail investors. The ultimate aim of the Company and of its Parent, Project Imagine Limited, is to encourage savers to become investors by providing an investment product where capital is not at risk. The issued bonds of the company have been admitted to the NEX exchange growth market and the company has a total facility for issuing GBP7 million of bonds, each bond being worth GBP100, in total over a rolling twelve-month period.

The Company successfully achieved its listing of the initial tranche of the bonds in February 2019 with its pilot issuance of 910 bonds worth GBP91,000 in total during March 2019. The Company has since seen improvements made by Project Imagine Limited, the distributor of the bonds, in relation to its technology platform, the clarity of its offering to customers and its regulatory capital position. The Company has therefore been pleased to commence issuing bonds again as of October 2019 and has continued doing so on a monthly basis since. The bonds are being marketed by its parent company Project Imagine Limited and a secondary market is being made by Thomas Grant and Company Limited.

Since the beginning of the current financial year, the Company incurred significant one-off costs relating to admission of total facility for issue of GBP7m worth of bonds on the NEX Growth Market. No other significant one-off costs are expected by management.

The Company relies on the funding of its Parent, Project Imagine Limited for the continuation of frequent bond issuances in order to encourage savers to become investors.

Principal risks and uncertainties

Business model - the risk that the Company's business model is not sustainable due to poor execution of the Company's strategic plan or inability to adapt to changing market conditions.

Financial - any risks that could impact the Company's financial profile, in particular cash flow risk arising from failure to maintain an adequate working capital position.

Compliance - the risk of not meeting relevant legislations, rules and regulations which could cause customers harm, financial losses or reputational damage to the Company.

Operational - the risk that failures of people, processes or internal and third-party systems could lead to a service disruption or financial losses.

Financial Review

The Company does not have costs associated with people, technology, marketing, premises or other such overheads. Monthly operating costs are low and largely limited to professional services fees.

The majority of Company's costs are associated with bond issuance and listing.

In the period to the 30 September 2019, total losses amounted to GBP189,090, including GBP54,485 in one-off costs of listing the bonds.

Key performance indicators

Rate of subscription to monthly bond issuance

Since recommencing issuances, monthly issuances have been oversubscribed by 2.1x on average

Unique customers subscribing

Unique subscribers have grown from 53 at the time of first issuance to 795 at present

Other performance indicators

The Company's business model is not reliant on any natural resources, nor does management anticipate climate change having a direct impact on the Company's operations.

The Company along with its Parent, Project Imagine Limited, performs an important role in society by incentivising users to save. As long as the Company continues to operate in an ethical and responsible fashion, it expects to continue fulfilling this important role.

Future Outlook

Since the Reporting Date, the Company has issued a further 13,445 bonds of GBP100 each for an aggregate total of GBP1,344,500 (see Note 11 on Page 17 of the financial statements for further details).

The Directors believe that the Company, along with that of Project Imagine Limited, has a strong story to tell in relation to its mission and will continue to raise interest in its bonds with marketing campaigns, word of mouth and press coverage.

The Company's KPIs demonstrate that this is the case as demand for the Company's issued bonds continues to outstrip supply. Meanwhile, the number of unique savers accessing the product is increasing, demonstrating the increasing reach and profile of the Company.

On behalf of the board

A Chakravarty

Director

16 March 2020

Statement of Comprehensive Income for the period ended 30 September 2019

 
                                                     Period 
                                                      ended 
                                               30 September 
                                                       2019 
                                                        GBP 
 Administrative expenses                          (187,032) 
 
 Interest receivable and similar income                 101 
 Interest payable and similar expenses              (2,159) 
                                             -------------- 
 
 Loss before taxation                             (189,090) 
 
 Tax on loss                                              - 
                                             -------------- 
 
 Loss for the financial period                    (189,090) 
 
 Other comprehensive income                               - 
                                             -------------- 
 
 Total comprehensive income for the period        (189,090) 
 
 
 

Loss per share (expressed in pence per share)

From continuing operations:

 
 
Basic and diluted loss per share                      (0.89)p 
 
 
 
 

Statement of Financial position at 30 September 2019

 
                                                                    2019 
                                                         GBP                GBP 
 
Current assets 
Debtors                                               24,917 
Cash at bank and in hand                             194,168 
                                               ------------- 
 
                                                     219,085 
 
Creditors: amounts falling due within one 
 year                                              (108,175) 
                                               ------------- 
 
Net current assets                                                      110,910 
                                                                    =========== 
 
 
 
 
Capital and reserves 
Called up share capital                                                 300,000 
Profit and loss reserves                                              (189,090) 
                                                                    ----------- 
Total equity                                                            110,910 
                                                                    =========== 
 
 
 
 
 
 

Cash Flow Statement for the period ended 30 September 2019

 
                                                            2019 
                                                         GBP         GBP 
 
Cash flows from operating activities 
 
Cash absorbed by operations                                    (196,933) 
 
Investing activities 
Interest received                                        101 
                                                     ------- 
 
Net cash generated from/(used in) investing 
 activities                                                          101 
 
Financing activities 
Proceeds from issue of shares                        300,000 
Issue of debentures                                   91,000 
                                                     ------- 
 
Net cash generated from/(used in) financing activities           391,000 
                                                               --------- 
 
Net increase in cash and cash equivalents                        194,168 
 
Cash and cash equivalents at beginning 
 of period                                                             - 
                                                               --------- 
 
Cash and cash equivalents at end of period                       194,168 
                                                               ========= 
 
 

NOTES TO PRELIMINARY RESULTS FOR THE PERIOD ENDED 30 SEPTEMBER 2019

1. The financial information set out above does not constitute statutory accounts for the purpose of Section 434 of the Companies Act 2006. The financial information has been extracted from the statutory accounts of Dozens Savings Plc and is presented using the same accounting policies, which have not yet been filed with the Registrar of companies, but on which the auditors gave an unqualified report on 16 March 2020.

The preliminary announcement of the results for the period ended 30 September 2019 was approved by the board of directors on 16 March 2020.

   2.         Loss per Share 

Loss per share (expressed in pence per share) from continuing operations:

 
 Basic and diluted loss per share    (0.89)p 
 
 

Earnings per share has been calculated on the net basis on the loss after tax of GBP189,090 using the weighted average number of ordinary shares in issue of 212,698. There were no potentially dilutive shares at the period end.

- ends -

The directors of Dozens Savings plc accept responsibility for this announcement.

For further information, please contact:

Gemma Steel

Executive Director

Dozens Savings plc

Email: hello@dozens.com

Tel: 0808 164 1020

Alfred Henry Corporate Finance Limited

NEX Corporate Advisor to Dozens Savings plc

Attn: Jon Isaacs

www.alfredhenry.com

Tel: +44 (0) 203 772 0021

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DJ Dozens Savings PLC Final Results -2-

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