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Tap Global Group Plc - Interim Results & Trading Update


Announcement provided by

Tap Global Group Plc · TAP

22/03/2023 07:00

Tap Global Group Plc - Interim Results & Trading Update PR Newswire

22 March 2023

Tap Global Group Plc

(“Tap” or the “Company”)

Interim Results

&

Trading Update

Tap reports significant growth in user numbers and revenue following successful fundraise and listing on AQSE

Tap Global Group Plc (AQSE: TAP), the regulated crypto app bridging the gap between traditional finance and blockchain technology, presents its unaudited half-year results for the six-month period ended 31 December 2022. Given that the reverse takeover acquisition (“RTO”) of Tap Global Limited (“TGL”) by Quetzal Capital Plc (“Quetzal”) did not complete until 10 January 2023, the Business Review contained in this announcement extends only to the activities of Quetzal prior to the RTO.

Accordingly, Tap is pleased to provide an update on its performance since the RTO in the below trading update with the Company benefitting from a material increase in registered users and revenue ahead of internal forecasts.

Tap Trading Update – Post Period End

Since listing, Tap has seen material increases in both registered users and revenue delivered through the Company’s platform. Registered users as at 28 February 2023 stood at just under 140,000 compared with 100,000 announced at the end of September 2022.

Revenue in each of January and February 2023 was over three times that delivered in December 2022, with this positive momentum carried through into March. The Company intends to commission analyst research in the near future which will set forward looking revenue targets.

On 24 January 2023, the Company announced a contract-win with Bitfinex, one of the world’s leading crypto exchanges. The contract involves the provision of ‘Cards as a Service’ (“CaaS”) to users of Bitfinex who can opt in for a Mastercard managed by Tap. Tap will receive a per card/per month revenue stream from this contract, which forms part of the Company’s growing business-to-business offering. Tap is actively seeking further clients for its CaaS solution to expand this potentially significant revenue stream. 

The Company is focused on the organic growth of its userbase coupled with geographical expansion to territories and jurisdictions beyond Europe.

John Taylor, Chairman of Tap Global:

“We are delighted with Tap’s progress following the successful RTO earlier this year. To see both revenue and user numbers ahead of expectations in a challenging economic environment shows why we initially invested in Tap back in December 2021 and is a testament to the business its founders are building. 

The regulated status of Tap, under the Gibraltar Financial Services Commission licence, is providing considerable assurance to users joining from non-regulated platforms in what has been a very unsettling period in the crypto sector. The enhanced levels of user security that our platform offers presents an opportunity for Tap to continue its impressive growth trajectory this year and beyond.”

Business Review – Pre-RTO

In the six months to 31 December 2022, the entire activity of Quetzal was the work involved in completing the relevant due diligence, and legal and administrative work in relation to the RTO. On 1 November 2022, Quetzal entered into a Sale and Purchase Agreement with TGL to acquire its entire issued share capital. The decision to exercise its right to acquire TGL was based on the considerable progress TGL had made in terms of growing user numbers and revenue following Quetzal’s initial £1.5 million investment made on 3 December 2021 by way of a convertible loan. 

The financial results for the six months ended 31 December 2022 show a loss of £298,992 compared to a £104,689 loss for the same period in 2021. The increase in loss is primarily attributable to fees incurred in relation to the RTO. The Company’s net assets at 31 December 2022 were £2,559,858 (2021: £3,055,345).

Reverse Takeover

Post period-end, on 9 January 2023, Quetzal’s shareholders approved the RTO of TGL amongst other resolutions that included the name change from Quetzal Capital Plc to Tap Global Group Plc. As a result of the RTO, the Board welcomed David Carr as Chief Executive Officer, Arsen Torosian as Chief Strategy Officer and Des Hellicar-Bowman as a Non-Executive Director. As announced following admission, John Taylor remained on the Board as Non-Executive Chairman and Tony Quirke, previously Finance Director of Quetzal became Chief Financial Officer of the Company. Fungai Ndoro stepped down from the Board on the completion of the RTO. The Board thanks Fungai for her unstinting work towards the completion of the RTO.

The Company raised £3.1m in gross proceeds as part of the RTO primarily from strategic investors already active in cryptocurrency projects and businesses. With the RTO costs substantially paid in prior periods, the Company held net cash of approximately £4.0 million at the time of completion. This should provide substantial runway to profitability based on current projections and the significant levels of revenue already coming into the business.

The Directors of the Company accept responsibility for the contents of this announcement.

Enquiries:

Tap Global Group Plc 
David Carr, Chief Executive Officer
Via Vigo Consulting
 
Peterhouse Capital Limited (AQSE Growth Market Corporate Advisor)
Guy Miller/Narisha Ragoonanthun

Vigo Consulting (Investor Relations)
Ben Simons / Charlie Neish
+44 (0)20 220 9795


+44 (0)20 7390 0230
tapglobal@vigoconsulting.com

About Tap Global

Tap is a fully regulated DLT Provider and provides fully integrated crypto-fiat exchange services with an associated neo banking payments platform.

Through a single regulated App, Tap’s over 100,000 users can access several major crypto exchanges and, utilising Tap’s proprietary Artificial Intelligence middleware, customers benefit from best-execution and pricing in real time. Through the Tap card, users can also convert their crypto to spend at more than 37 million merchant locations worldwide.

Founded in 2018, Tap is one of only a handful of unified solutions operators fully regulated to provide distributed ledger technology services and was the first crypto FinTech company approved by Mastercard in Europe.



Interim Statement of Comprehensive Income

6 months to 31 Dec 2022
Unaudited
Year ended 30 June 2022
Audited
6 months to 31 Dec 2021
Unaudited
Note £ £ £
Turnover 40,000 50,000 -
Administrative expenses 1 (338,992) (371,792) (104,689)
Operating profit / (loss) (298,992) (321,792) (104,689)
Interest payable and similar expenses - - -
Profit / (loss) before taxation (298,992) (321,792) (104,689)
Tax on profit / (loss) - 15,629 -
Profit / (loss) for the financial period and total comprehensive income (298,992) (306,163) (104,689)

   

Earnings per share
Diluted earnings per share 2 (0.034)p (0.018)p (0.10)p

All the activities of the Company are from continuing operations and investments.

The notes form part of these interim financial statements.



Interim Statement of Financial Position

6 months to 31 Dec 2022
Unaudited
Year ended 30 June 2022
Audited
6 months to 31 Dec 2021
Unaudited
Note £ £ £
Fixed assets
Investments 3 1,987 1,987 2,279
1,987 1,987 2,279
Current assets
Debtors 4 51,486 102,078 152,200
Financial assets 5 1,780,950 1,815,320 1,935,371
Cash and cash equivalents 970,055 1,066,912 987,981
Total current assets 2,802,491 2,984,310 3,075,552
Creditors: amounts falling due within one year 6 257,137 139,964 19,374

Net current assets
2,545,354 2,844,346 3,056,178
Total assets less current liabilities 2,547,341 2,846,333 3,058,457
Provisions 12,517 12,517 (3,112)
Net assets 2,559,858 2,858,850 3,055,345
Capital and reserves
Called up share capital 1,701,243 1,701,243 1,701,243
Share premium 4,687,681 4,687,681 4,687,681
Option & warrant reserve 14,099 14,099 9,120
Profit & loss account (3,843,165) (3,544,173) (3,342,699)
Shareholders’ funds / (deficit) 2,559,858 2,858,850 3,055,345

The interim financial statements were approved and authorised for issue by the Board and were signed on its behalf by:

Anthony Quirke

Director

21 March 2023

The notes form part of these interim financial statements.



Interim Statement of Changes in Equity

Called up Share Capital Share Premium Other Reserves Profit & Loss Account Total
£ £ £ £ £
As at 1 July 2022 1,701,243 4,687,681 14,099 (3,544,173) 2,858,850
Total comprehensive profit for the period - - - (298,992) (298,992)
Issue of shares - - - - -
Balance at 31 December 2022 1,701,243 4,687,681 14,099 (3,843,165) 2,559,858

   

Called up Share Capital Share Premium Other Reserves Profit & Loss Account Total
£ £ £ £ £
As at 1 July 2021 1,701,243 4,687,681 9,120 (3,238,010) 3,160,034
Total comprehensive profit for the year - - - (306,163) (306,163)
Option & warrant reserve - - 4,979 - 4,979
Balance at 30 June 2022 1,701,243 4,687,681 14,099 (3,544,173) 2,858,850

   

Called up Share Capital Share Premium Other Reserves Profit & Loss Account Total
£ £ £ £ £
As at 1 July 2021 1,701,243 4,687,681 9,120 (3,238,010) 3,160,034
Total comprehensive profit for the period - - - (104,689) (104,689)
Issue of shares - - - - -
Balance at 31 December 2021 1,701,243 4,687,681 9,120 (3,342,699) 3,055,345

The following describes the nature and purpose of each reserve within owners’ equity:

Reserve Description and purpose

Called Up Share Capital

This represents the nominal value of shares issued.
Share Premium Amount subscribed for share capital in excess of nominal value.
Profit & Loss Account Cumulative net gains and losses recognised in the statement of comprehensive income.

The notes form part of these interim financial statements.



Interim Statement of Cash Flows

Note 31 Dec 2022
£
30 June 2022
£
31 Dec 2021
£
Cash flows from operating activities
Profit / (loss) for the financial period (298,992) (306,163) (104,689)
Adjustments for:
Tax on profit / (loss) - (15,629) -
Share option charge - 4,979 -
Fair value adjustment of listed shares 34,370 82,552 4,361
Profit on disposal of investments - (162,769) -
Changes in:
Trade and other debtors 4 50,592 (27,338) (80,572)
Trade and other creditors 6 117,173 119,594 (996)
Cash generated from operations (96,857) (304,774) (181,896)
Interest paid - - -
Net cash used in operating activities (96,857) (304,774) (181,896)
Cash flows from investing activities
Purchase of Convertible Loan Note - (1,500,000)
Purchase of listed investments - (612,875) (1,671,802)
Sale of investments - 645,994 -
Net cash used in investing activities - (1,466,881) (1,671,802)
Cash flows from financing activities
Shares to be issued - - -
Tax paid - (3,112) -
Net cash used in financing activities - (3,112) -
Increase / (Decrease) in cash and cash equivalents (96,857) (1,774,767) (1,853,698)
Cash and cash equivalents at beginning of the period 1,066,912 2,841,679 2,841,679
Cash and cash equivalents at the end of the period 970,055 1,066,912 987,981

The notes form part of these interim financial statements.

Notes to the Interim Financial Statements

Financial information

The financial information set out in these interim financial statements does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.  The Company’s statutory financial statements for the year ended 30 June 2022 have been filed with the Registrar of Companies. The auditor’s report on those financial statements was unqualified and did not contain a statement under Section 498(2) of the Companies Act 2006.

These interim results have not been audited nor have they been reviewed by the Company’s auditors under ISRE 2410 of the Auditing Practices Board.

These interim financial statements are for the six month period ended 31 December 2022.  They have been prepared following the recognition and measurement principles of FRS 102.  They do not include all of the information required for full annual financial statements and should be read in conjunction with the financial statements for the period ended 30 June 2022. 

Going concern

The directors, having made appropriate enquiries, consider that adequate resources exist and continued support of the directors is forthcoming for the Company to continue in operational existence for the foreseeable future, therefore, it is appropriate to adopt the going concern basis in preparing these interim financial statements for the period ended 31 December 2022.

1.           Administrative expenses

31 Dec 2022
£
30 June 2022
£
31 Dec 2021
£
Directors’ remuneration 83,875 102,438 25,167
RTO fees 146,104 183,866 -
Legal & professional fees 39,252 114,532 59,901
Fair revaluation on investments 34,370 (80,217) -
Oher costs 35,391 51,173 19,621
338,992 371,792 104,689

2.           Earnings per share

The calculation of earnings per share is based on the loss attributable to ordinary shareholders divided by the weighted average number of ordinary shares in issue being 877,141,001 during the period.  This results in a loss per share of 0.034p (2021: 0.10p).

3.            Investments

Shares in group undertakings Other investments other than loans Total
£ £ £
Cost
As at 1 July 2022 - 1,987 1,987
Additions - - -
Revaluations - - -
Balance at 31 December 2022 - 1,987 1,987

3.            Investments continued…

Shares in group undertakings Other investments other than loans Total
Carrying amount £ £ £
As at 1 July 2022 - 1,987 1,987
Balance at 31 December 2022 - 1,987 1,987

4.           Debtors

31 Dec 2022
£
30 June 2022
£
31 Dec 2021
£
Trade debtors - 30,000 -
Brokerage account 23,546 24,817 126,927
Prepayments 11,239 23,092 15,562
VAT / PAYE Debtor 16,701 24,169 9,711
51,486 102,078 152,200

5.           Financial assets

31 Dec 2022
£
30 June 2022
£
31 Dec 2021
£
At fair value
TAP Global Limited 1,500,000 1,500,000 1,500,000
Other listed and unlisted investments 280,950 315,320 435,371
1,780,950 1,815,320 1,935,371

6.           Creditors falling due within one year

31 Dec 2022
£
30 June 2022
£
31 Dec 2021
£
Trade creditors 24,254 41,739 12,999
Accruals 132,883 98,225 6,375
Unissued share capital 100,000 - -
257,137 139,964 19,374

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