Editing Arctic Shores
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|key_people=Robert Newry}} | |key_people=Robert Newry}} | ||
Employing the right people is one of the best ways to maximise the profitability of | Employing the right people is one of the best ways to maximise the profitability of businesses, and Arctic Shores is a company that's on a mission to provide more objective, engaging, and fair ways to assess potential employees. | ||
At the heart of Arctic Shores' offerings is its psychometric platform, UNA, engineered to assess key personality traits or competencies that are indicative of success in a given job role | At the heart of Arctic Shores' offerings is its psychometric platform, UNA, engineered to assess key personality traits or competencies that are indicative of success in a given job role. | ||
Assuming that Arctic Shores increases its share of the | Assuming that Arctic Shores increases its share of the ccc market by cccx to 1% (from less than ccc%) and other assumptions, the expected return of an investment in the company over the next five years is ccc%, which equates to an annual return of ccc%. In other words, an £100,000 investment in the company is expected to return £ccc in five years time. | ||
The degree of risk associated with an investment in Arctic Shores is 'high', with the shares having an adjusted beta that is | The degree of risk associated with an investment in Arctic Shores is 'high', with the shares having an adjusted beta that is unknown. | ||
Accordingly, if your desired annual rate of return is | Accordingly, if your desired annual rate of return is ccc% or less and/or one of your goals is to provide more objective, engaging, and fair ways to assess potential employees (i.e. you share in the mission of the Arctic Shores company), and you are both willing and able to accept the possibility of losing your entire investment amount, then an investment in the company is considered to be a 'suitable' one. | ||
'''Fun fact:''' the company misspelled its name as "Artic Shores Limited" on the official incorporation filing documents, but realised and corrected the error to "Arctic Shores Limited" within four days.<ref name=":15">https://find-and-update.company-information.service.gov.uk/company/08589048</ref> | '''Fun fact:''' the company misspelled its name as "Artic Shores Limited" on the official incorporation filing documents, but realised and corrected the error to "Arctic Shores Limited" within four days.<ref name=":15">https://find-and-update.company-information.service.gov.uk/company/08589048</ref> | ||
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Arctic Shores' mission is to provide more objective, engaging, and fair ways to assess potential employees, going beyond the traditional CV to give every candidate a chance to showcase their true potential. | Arctic Shores' mission is to provide more objective, engaging, and fair ways to assess potential employees, going beyond the traditional CV to give every candidate a chance to showcase their true potential. | ||
The game-based assessments | The game-based assessments they developed are designed to measure cognitive and emotional abilities, as well as personality traits, in a more engaging way than traditional psychometric tests. By doing so, they aim to reduce biases in hiring decisions and improve the diversity and quality of hires. | ||
=== What are the main offering(s) of the company? === | === What are the main offering(s) of the company? === | ||
[[File:Illustration of the UNA platform interface on a computer screen..png|thumb|An illustration of the UNA platform interface showcasing its various features.]] | [[File:Illustration of the UNA platform interface on a computer screen..png|thumb|An illustration of the UNA platform interface showcasing its various features.]] | ||
Arctic Shores Limited specialises in innovative talent assessment solutions, leveraging psychometric games and Artificial Intelligence (AI) technology to revolutionise recruitment processes<ref>https://dotcommagazine.com/2023/07/arctic-shores-a-fascinating-comprehensive-guide/#:~:text=A%20rctic%20Shores%20is%20a,insights%20into%20candidates%E2%80%99%20cognitive</ref>. | Arctic Shores Limited specialises in innovative talent assessment solutions, leveraging psychometric games and Artificial Intelligence (AI) technology to revolutionise recruitment processes<ref>https://dotcommagazine.com/2023/07/arctic-shores-a-fascinating-comprehensive-guide/#:~:text=A%20rctic%20Shores%20is%20a,insights%20into%20candidates%E2%80%99%20cognitive</ref>. Their primary offering is a Talent Discovery Platform known as UNA, which embodies a myriad of features designed to optimise recruitment outcomes: | ||
# '''Games-Based Assessments (GBA):''' | # '''Games-Based Assessments (GBA):''' | ||
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#* Unlike conventional questioning, UNA employs tasks to assess candidates, which enables a more practical understanding of a candidate’s abilities and behaviors. The tasks score every step a candidate takes, akin to how scoring would be done in interviews or exams, which can increase the size of the talent pool by up to 20%.<ref name=":18">https://www.arcticshores.com/una</ref> | #* Unlike conventional questioning, UNA employs tasks to assess candidates, which enables a more practical understanding of a candidate’s abilities and behaviors. The tasks score every step a candidate takes, akin to how scoring would be done in interviews or exams, which can increase the size of the talent pool by up to 20%.<ref name=":18">https://www.arcticshores.com/una</ref> | ||
# '''Personality and Workplace Intelligence Assessment:''' | # '''Personality and Workplace Intelligence Assessment:''' | ||
#* Arctic Shores assesses both | #* Arctic Shores assesses both Personality and what they term as Workplace Intelligence (akin to Aptitude). These can be measured separately or combined to provide a holistic, accurate picture of someone’s ability to succeed in a role.<ref name=":18" /> | ||
# '''Exceptional Candidate Experience:''' | # '''Exceptional Candidate Experience:''' | ||
#* The platform focuses on delivering an interactive, engaging assessment experience for candidates, supported by instant feedback reports and round-the-clock user support.<ref name=":18" /> | #* The platform focuses on delivering an interactive, engaging assessment experience for candidates, supported by instant feedback reports and round-the-clock user support.<ref name=":18" /> | ||
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=== What is the price of the offering? === | === What is the price of the offering? === | ||
[[File:Illustration of a laptop screen displaying the Arctic Shores website's pricing page with the words 'Flexible pricing for all your recruitment needs'..png|thumb|An illustration of the Arctic Shores website's pricing page on a laptop with a padlock | [[File:Illustration of a laptop screen displaying the Arctic Shores website's pricing page with the words 'Flexible pricing for all your recruitment needs'..png|thumb|An illustration of the Arctic Shores website's pricing page on a laptop with a padlock symbolizing undisclosed pricing.]] | ||
The pricing for the offerings by Arctic Shores Limited is not publicly disclosed on | The pricing for the offerings by Arctic Shores Limited is not publicly disclosed on their official website or other platforms. They offer a flexible pricing model based on the recruitment needs of the client. The pricing page on their official website mentions "Flexible pricing for all your recruitment needs" but does not provide specific pricing details<ref>https://www.arcticshores.com/pricing#:~:text=Flexible%20pricing%20for%20all%20your,Start%20hiring%20for%20potential%20today</ref>. Additionally, on a software review platform, there's a mention of discovering Arctic Shores pricing by requesting a free demo, suggesting that pricing might be shared on a case-by-case basis with interested parties<ref>https://www.softwaresuggest.com/arctic-shores#:~:text=Discover%20Arctic%20Shores%20pricing%2C%20features%2C,By%20submitting</ref>. | ||
Arctic Shores offers two main subscription models: UNA Access and UNA Pro. However, the specific pricing for these subscriptions is not provided on the website. | Arctic Shores offers two main subscription models: UNA Access and UNA Pro. However, the specific pricing for these subscriptions is not provided on the website. | ||
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[[File:Illustration of a global map with pinpoint markers on countries like Indonesia, Greater China, Italy, Spain, The Netherlands, South Africa, and Chile.png|thumb|An illustration of a global map highlighting the locations of Arctic Shores' resellers.]] | [[File:Illustration of a global map with pinpoint markers on countries like Indonesia, Greater China, Italy, Spain, The Netherlands, South Africa, and Chile.png|thumb|An illustration of a global map highlighting the locations of Arctic Shores' resellers.]] | ||
The offerings of Arctic Shores Limited, specifically | The offerings of Arctic Shores Limited, specifically their Talent Discovery Platform UNA, can be purchased or accessed through various avenues: | ||
# '''Direct Purchase:''' | # '''Direct Purchase:''' | ||
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# '''Online Platforms:''' | # '''Online Platforms:''' | ||
#* Official Website: Arctic Shores promotes its offerings on its official website, where potential customers can learn about the products and services, view subscription options, and get in touch for more details.<ref>https://www.arcticshores.com/pricing#:~:text=,Start%20hiring%20for%20potential%20today</ref><ref>https://www.arcticshores.com/#:~:text=Get%20Started,the%20business%20as%20a%20whole</ref><ref>https://www.arcticshores.com/pricing</ref> | #* Official Website: Arctic Shores promotes its offerings on its official website, where potential customers can learn about the products and services, view subscription options, and get in touch for more details.<ref>https://www.arcticshores.com/pricing#:~:text=,Start%20hiring%20for%20potential%20today</ref><ref>https://www.arcticshores.com/#:~:text=Get%20Started,the%20business%20as%20a%20whole</ref><ref>https://www.arcticshores.com/pricing</ref> | ||
#* YouTube Channel: There is a YouTube channel dedicated to Arctic Shores where | #* YouTube Channel: There is a YouTube channel dedicated to Arctic Shores where they have posted content about their behavior-based assessment, potentially among other offerings.<ref>https://www.youtube.com/channel/UCdoDJCAGYCw_1ewEvrDol1A#:~:text=Channels%20About%20Stones%20Sessions%20promo,BBA%3A%20Three%20little%20letters%2C%20three</ref> | ||
# '''Partnerships:''' | # '''Partnerships:''' | ||
#* Arctic Shores has formed partnerships to promote its offerings. For example, a partnership with Wiser is mentioned, which is based on a shared mission rather than just synergies or complementary offerings.<ref>https://landing.arcticshores.com/wiser#:~:text=The%20partnership%20between%20Arctic%20Shores,is%20that%20human%20potential</ref> | #* Arctic Shores has formed partnerships to promote its offerings. For example, a partnership with Wiser is mentioned, which is based on a shared mission rather than just synergies or complementary offerings.<ref>https://landing.arcticshores.com/wiser#:~:text=The%20partnership%20between%20Arctic%20Shores,is%20that%20human%20potential</ref> | ||
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#* Arctic Shores is committed to contributing towards a work environment that’s truly fair and inclusive, with one of its founding principles being that everyone deserves a fair shot.<ref>https://www.arcticshores.com/our-story#:~:text=Explore%2C%20always%20We%20can%E2%80%99t%20change,everyone%20deserves%20a%20fair%20shot</ref> | #* Arctic Shores is committed to contributing towards a work environment that’s truly fair and inclusive, with one of its founding principles being that everyone deserves a fair shot.<ref>https://www.arcticshores.com/our-story#:~:text=Explore%2C%20always%20We%20can%E2%80%99t%20change,everyone%20deserves%20a%20fair%20shot</ref> | ||
# '''Technological Innovation and Product Development:''' | # '''Technological Innovation and Product Development:''' | ||
#* Continuation of the innovative blend of game technology, behavioral science, cognitive neuroscience, and data analytics in | #* Continuation of the innovative blend of game technology, behavioral science, cognitive neuroscience, and data analytics in their platform to help organisations and individuals make better people and career choices, likely reflecting a long-term strategy of technological innovation and product enhancement.<ref>https://www.arcticshores.com/our-story#:~:text=Explore%2C%20always%20We%20can%E2%80%99t%20change,everyone%20deserves%20a%20fair%20shot</ref> | ||
# '''Customer Acquisition and Retention:''' | # '''Customer Acquisition and Retention:''' | ||
#* Building on a robust client base including global entities like PwC and Siemens, the company may focus on customer acquisition and retention to further its revenue and market share. | #* Building on a robust client base including global entities like PwC and Siemens, the company may focus on customer acquisition and retention to further its revenue and market share. | ||
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A key way to determine a product's closest competitors is by looking at other offerings that are targeting the same or similar target audience (i.e. recruiters) and aiming to provide the same core benefit (i.e. more efficient recruiting, and, ultimately, maximising profits), and then ranking the offerings in terms of the total amount of time spent using and/or money spent purchasing the offerings relative to other similar offerings. With that said, according to Stockhub users, the closest competitor of the Arctic Shores offering is Pymetrics. | A key way to determine a product's closest competitors is by looking at other offerings that are targeting the same or similar target audience (i.e. recruiters) and aiming to provide the same core benefit (i.e. more efficient recruiting, and, ultimately, maximising profits), and then ranking the offerings in terms of the total amount of time spent using and/or money spent purchasing the offerings relative to other similar offerings. With that said, according to Stockhub users, the closest competitor of the Arctic Shores offering is Pymetrics. | ||
Arctic Shores operates in the talent assessment and HR tech space, offering game-based assessments for recruitment. In this domain, | Arctic Shores operates in the talent assessment and HR tech space, offering game-based assessments for recruitment. In this domain, they face competition from both traditional psychometric test providers and other innovative assessment tool providers. A detailed comparison between Arctic Shores and some of its main competitors are shown in the table below. | ||
{| class="wikitable" | {| class="wikitable" | ||
|+ | |+ | ||
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|Uses neuroscience-based games and artificial intelligence to match candidates' emotional and cognitive abilities with company profiles. | |Uses neuroscience-based games and artificial intelligence to match candidates' emotional and cognitive abilities with company profiles. | ||
|Offers video interviewing software and also uses AI-driven assessments to evaluate video interviews. | |Offers video interviewing software and also uses AI-driven assessments to evaluate video interviews. | ||
|While primarily focused on the tech recruitment space, | |While primarily focused on the tech recruitment space, they offer gamified coding challenges and assessments for programmers. | ||
|Offers a range of assessment tools, including game-based assessments that evaluate cognitive ability and emotional intelligence. | |Offers a range of assessment tools, including game-based assessments that evaluate cognitive ability and emotional intelligence. | ||
|Provides more traditional forms of cognitive and personality testing. | |Provides more traditional forms of cognitive and personality testing. | ||
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=== SOM (Serviceable Obtainable Market): === | === SOM (Serviceable Obtainable Market): === | ||
Arctic Shores' SOM would be a subset of | Arctic Shores' SOM would be a subset of their SAM, and would depend on their competitive positioning, product efficacy, marketing efforts, and other factors. Without specific data on their market share and the adoption rate of game-based assessment tools, it's challenging to provide a numeric estimate. It could be anywhere from several million to several billion, depending on the aforementioned factors. | ||
== Financials == | == Financials == | ||
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!9 | !9 | ||
!10 | !10 | ||
|- | |- | ||
!Period end date | !Period end date | ||
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!31/12/2022<ref name=":1" /> | !31/12/2022<ref name=":1" /> | ||
!31/12/2023 | !31/12/2023 | ||
|- | |- | ||
!Period duration (days) | !Period duration (days) | ||
Line 413: | Line 333: | ||
!365 | !365 | ||
!273 | !273 | ||
!366 | !366 | ||
!365 | !365 | ||
!365 | !365 | ||
!365 | !365 | ||
Line 471: | Line 351: | ||
!Historic | !Historic | ||
!Forecast | !Forecast | ||
|- | |- | ||
! colspan="12" |Profit and loss | ! colspan="12" |Profit and loss | ||
|- | |||
|Revenue | |||
|N/A | |||
|N/A | |||
|N/A | |||
|N/A | |||
|N/A | |||
|N/A | |||
|N/A | |||
|N/A | |||
|N/A<ref name=":20">The company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime. To be considered a small company, the company must have any 2 of the following: a turnover of £10.2 million or less; £5.1 million or less on its balance sheet; and/or 50 employees or less. The company has 77 companies, and therefore must have: a turnover of £10.2 million or less (and £5.1 million or less on its balance sheet).</ref> | |||
|N/A<ref name=":21">The company has incorrectly used the small companies' regime provision. Accordingly, once made aware of the error, the company is expected to file its comprehensive income statement for the year ending 31st December 2022.</ref> | |||
| | |||
|- | |||
|Net profit | |||
|N/A | |||
|N/A | |||
|N/A | |||
|N/A | |||
|N/A | |||
|N/A | |||
|N/A | |||
| | |||
| | |||
|N/A | |N/A | ||
|N/A | |N/A | ||
|N/A<ref name=":21" /> | |||
| | |||
|- | |||
! colspan="12" |Balance sheet | |||
|N/A<ref name=": | |||
| | |||
| | |||
| | |||
|- | |- | ||
| | |'''Fixed assets''' | ||
| | |||
| | |||
| | |||
| | |||
| | | | ||
| | | | ||
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| | | | ||
| | | | ||
|- | |||
|Tangible assets | |||
|0 | |||
|1,578 | |||
|4,709 | |||
|6,261 | |||
|11,391 | |||
|28,075 | |||
|29,816 | |||
|23,208 | |||
|10,922 | |||
|15,471 | |||
| | | | ||
|- | |||
|Investments | |||
|0 | |||
|0 | |||
|0 | |||
|0 | |||
|27,175 | |||
|27,175 | |||
|0 | |||
|0 | |||
|0 | |||
|0 | |||
| | | | ||
|- | |||
| | | | ||
|0 | |||
|1,578 | |||
|4,709 | |||
|6,261 | |||
|38,566 | |||
|55,250 | |||
|29,816 | |||
|23,208 | |||
|10,922 | |||
|15,471 | |||
| | | | ||
|- | |||
|'''Current assets''' | |||
| | | | ||
| | | | ||
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| | | | ||
| | | | ||
| | |||
| | |||
| | |||
|- | |||
|Debtors: amounts falling due within one year | |||
|984 | |||
|48,304 | |||
|24,033 | |||
|129,247 | |||
|330,032 | |||
|770,097 | |||
|460,046 | |||
|539,983 | |||
|810,434 | |||
|701,411 | |||
| | |||
|- | |||
|Cash at bank and in hand | |||
|107,538 | |||
|7,231 | |||
|113,894 | |||
|262,877 | |||
|295,829 | |||
|1,250,069 | |||
|2,959,316 | |||
|2,850,864 | |||
|1,990,652 | |||
|5,480,754 | |||
| | |||
|- | |||
| | |||
|108,522 | |||
|55,535 | |||
|137,927 | |||
|392,124 | |||
|628,861 | |||
|2,020,166 | |||
|3,419,362 | |||
|3,390,847 | |||
|2,801,086 | |||
|6,182,165 | |||
| | |||
|- | |||
|Creditors: amounts falling due within one year | |||
|(2,284) | |||
|(53,029) | |||
|(45,887) | |||
|(168,573) | |||
|(436,957) | |||
|(967,424) | |||
|(1,307,807) | |||
|(2,023,016) | |||
|(2,738,249) | |||
|(3,449,005) | |||
| | |||
|- | |||
|'''Net current assets''' | |||
|'''106,238''' | |||
|'''2,506''' | |||
|'''92,040''' | |||
|'''223,551''' | |||
|'''191,904''' | |||
|'''1,052,742''' | |||
|'''2,111,555''' | |||
|'''1,367,831''' | |||
|'''62,837''' | |||
|'''2,733,160''' | |||
| | |||
|- | |||
|'''Total assets less current liabilities''' | |||
|'''106,238''' | |||
|'''4,084''' | |||
|'''96,749''' | |||
|'''229,812''' | |||
|'''230,470''' | |||
|'''1,107,992''' | |||
|'''2,141,371''' | |||
|'''1,391,039''' | |||
|'''73,759''' | |||
|'''2,748,631''' | |||
| | |||
|- | |||
|Creditors: amounts falling due after more than one year | |||
|(50,165) | |||
|(51,178) | |||
|(637,575) | |||
|(53,264) | |||
|(54,339) | |||
|(55,160) | |||
|(56,274) | |||
|(451,783) | |||
|(1,362,136) | |||
|(754,295) | |||
| | |||
|- | |||
| | | | ||
| | | | ||
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| | | | ||
|- | |- | ||
|'''Net assets/(liabilities)''' | |||
|'''56,073''' | |||
|'''(47,094)''' | |||
|'''(540,826)''' | |||
|'''176,548''' | |||
|'''176,131''' | |||
|'''1,052,832''' | |||
|'''2,085,097''' | |||
|'''939,256''' | |||
|'''(1,288,377)''' | |||
|'''1,994,336''' | |||
| | |||
|- | |- | ||
|''' | |'''Capital and reserves''' | ||
| | | | ||
| | | | ||
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| | | | ||
| | | | ||
|- | |||
|Called up share capital | |||
|2 | |||
|2 | |||
|2 | |||
|3 | |||
|3 | |||
|4 | |||
|5 | |||
|5 | |||
|5 | |||
|7 | |||
| | | | ||
|- | |||
|Share premium account | |||
|77,979 | |||
|77,979 | |||
|77,979 | |||
|1,213,648 | |||
|2,058,639 | |||
|3,759,612 | |||
|7,321,532 | |||
|8,133,377 | |||
|8,175,743 | |||
|14,418,145 | |||
| | | | ||
|- | |||
|Profit and loss account | |||
|(21,908) | |||
|(125,075) | |||
|(618,807) | |||
|(1,037,103) | |||
|(1,882,511) | |||
|(2,706,784) | |||
|(5,236,440) | |||
|(7,194,126) | |||
|(9,464,125) | |||
|(12,423,816) | |||
| | | | ||
|- | |||
|'''Shareholders' funds''' | |||
|'''56,073''' | |||
|'''(47,094)''' | |||
|'''(540,826)''' | |||
|'''176,548''' | |||
|'''176,131''' | |||
|'''1,052,832''' | |||
|'''2,085,097''' | |||
|'''939,256''' | |||
|'''(1,288,377)''' | |||
|'''1,994,336''' | |||
| | | | ||
|- | |||
! colspan="12" |Cash flows | |||
|- | |||
|Operating profit | |||
| | | | ||
| | | | ||
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| | | | ||
| | | | ||
|} | |||
==== What are the assumptions used to estimate the financial forecasts?==== | |||
{| class="wikitable" | |||
|+Key inputs | |||
!Description | |||
!Value | |||
!Commentary | |||
|- | |||
| colspan="3" | <div style="text-align: center;">'''Revenue'''</div> | |||
|- | |||
|What's the estimated current size of the total addressable market? | |||
|$1,300,000,000 | |||
|Here, the total addressable market (TAM) is defined as the global brokerage market, and based on a number of assumptions<ref group="Note" name="Note01" />, it is estimated that the size of the market as of today (6th May 2023), in terms of revenue, is $1.3 trillion. | |||
|- | |||
|What is the estimated company lifespan? | |||
|50 years | |||
|Currently, Arctic Shores employs around 77, making the company a small organisation (less than 10,000 employees). That said, given the company's mission, we expect the company to grow to a large organisation, and research shows that the average lifespan of a large corporation is around 50 years.<ref>Stadler, Enduring Success, 3–5.</ref> | |||
|- | |||
|What's the estimated annual growth rate of the total addressable market over the lifecycle of the company? | |||
|3% | |||
|Research shows that the growth rate of the global brokerage market (i.e. the total addressable market) is similar to the growth rate of global gross domestic product, which has averaged (medium) around 3% per year in the last 20 years (2001 to 2022)<ref>https://www.macrotrends.net/countries/WLD/world/gdp-growth-rate</ref>. | |||
|- | |||
|What's the estimated company peak market share? | |||
|1% | |||
|The Stockhub users estimate that especially given the leadership of the company, the peak market share of Arctic Shores is around 1%, and, therefore, suggests using the share amount here. As of 30th September 2021, Arctic Shores's current share of the market is estimated at around 0.0010%. | |||
|- | |||
|Which distribution function do you want to use to estimate company revenue? | |||
|Gaussian | |||
|Research suggests that the revenue pattern of companies is similar to the pattern produced by the Gaussian distribution function (i.e. the revenue distribution is bell shaped)<ref>http://escml.umd.edu/Papers/ObsCPMT.pdf</ref>, so the Stockhub users suggest using that function here. | |||
|- | |||
|What's the estimated standard deviation of company revenue? | |||
| 5 years | |||
|Another way of asking this question is this way: within how many years either side of the mean does 68% of revenue occur? Based on Arctic Shores's current revenue amount (i.e. £12.68 million) and Arctic Shores's estimated lifespan (i.e. 50 years) and Arctic Shores's estimated current stage of its lifecycle (i.e. introduction stage), the Stockhub users suggest using five years (i.e. 68% of all sales happen within five years either side of the mean year), so that's what's used here. | |||
|- | |||
| colspan="3" |'''<div style="text-align: center;">Growth stages</div>''' | |||
|- | |||
|How many main stages of growth is the company expected to go through? | |||
| 4 stages | |||
|Research suggests that a company typically goes through four distinct stages of cash flow growth.<ref>Levie J, Lichtenstein BB (2010) A terminal assessment of stages theory: Introducing a dynamic approach to entrepreneurship. Entrepreneurship: Theory & Practice 34(2): 317–350. <nowiki>https://doi.org/10.1111/j.1540-6520.2010.00377.x</nowiki></ref> Research also shows that incorporating those stages into the discounted cash flow model improves the quality of the model and, ultimately, the quality of the value estimation.<ref>Stef Hinfelaar et al.:, 2019.</ref> | |||
In addition, research shows that a key way to determine the stage which a company is in is by examining the cash flow patterns of the company.<ref>Dickinson, 2010.</ref> A summary of the economic links to cash flow patterns can be found in the appendix of this report. The Stockhub users estimate that with Arctic Shores's operating cash flows negative (-), investing cash flows negative (-) and its financing cash flows positive (+), the company is in the first stage of growth (i.e. the 'introduction' stage), and, therefore, it has a total of four main stages of growth. Note, to account for one-off events, the three-year average (median) amount was used to calculate the cash flows. | |||
|- | |||
|What proportion of the company lifecycle is represented by growth stage 1? | |||
|30% | |||
|Research suggests 30%.<ref name=":6">http://escml.umd.edu/Papers/ObsCPMT.pdf</ref> | |||
|- | |||
|What proportion of the company lifecycle is represented by growth stage 2? | |||
|10% | |||
|Research suggests 10%.<ref name=":6" /> | |||
|- | |||
| What proportion of the company lifecycle is represented by growth stage 3? | |||
|20% | |||
| Research suggests 20%.<ref name=":6" /> | |||
|- | |||
|What proportion of the company lifecycle is represented by growth stage 4? | |||
|40% | |||
|Research suggests 40%.<ref name=":6" /> | |||
|- | |||
| colspan="3" |'''<div style="text-align: center;">Growth stage 1</div>''' | |||
|- | |||
|Cost of goods sold as a proportion of revenue (%) | |||
| | | | ||
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7">http://people.stern.nyu.edu/adamodar/pdfiles/papers/younggrowth.pdf</ref>. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. | |||
|- | |||
|Operating expenses as a proportion of revenue (%) | |||
| | | | ||
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. | |||
|- | |||
|Tax rate (%) | |||
| | | | ||
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. | |||
|- | |||
|Depreciation and amortisation rate (%) | |||
| | | | ||
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. | |||
|- | |||
|Fixed Capital Investment (FCInv) as a proportion of revenue (%) | |||
| | | | ||
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. | |||
|- | |||
|Working Capital Investment (WCInv) as a proportion of revenue (%) | |||
| | | | ||
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. | |||
|- | |||
|Net borrowing as a proportion of revenue (%) | |||
| | | | ||
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. | |||
|- | |||
|Interest expense as a proportion of revenue (%) | |||
| | | | ||
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 1)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. | |||
|- | |||
| colspan="3" |'''<div style="text-align: center;">Growth stage 2</div>''' | |||
|- | |||
|Cost of goods sold as a proportion of revenue (%) | |||
| | | | ||
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. | |||
|- | |||
|Operating expenses as a proportion of revenue (%) | |||
| | | | ||
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. | |||
|- | |||
|Tax rate (%) | |||
| | | | ||
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. | |||
|- | |||
|Depreciation and amortisation rate (%) | |||
| | | | ||
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. | |||
|- | |||
|Fixed Capital Investment (FCInv) as a proportion of revenue (%) | |||
| | | | ||
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. | |||
|- | |- | ||
| | |Working Capital Investment (WCInv) as a proportion of revenue (%) | ||
| | | | ||
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. | |||
|- | |||
|Net borrowing as a proportion of revenue (%) | |||
| | | | ||
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. | |||
|- | |||
|Interest expense as a proportion of revenue (%) | |||
| | | | ||
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 2)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. | |||
|- | |||
| colspan="3" |'''<div style="text-align: center;">Growth stage 3</div>''' | |||
|- | |||
|Cost of goods sold as a proportion of revenue (%) | |||
| | | | ||
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. | |||
|- | |||
|Operating expenses as a proportion of revenue (%) | |||
| | | | ||
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. | |||
|- | |||
|Tax rate (%) | |||
| | | | ||
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. | |||
|- | |||
|Depreciation and amortisation rate (%) | |||
| | | | ||
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. | |||
|- | |||
|Fixed Capital Investment (FCInv) as a proportion of revenue (%) | |||
| | | | ||
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. | |||
|- | |||
|Working Capital Investment (WCInv) as a proportion of revenue (%) | |||
| | | | ||
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. | |||
|- | |||
|Net borrowing as a proportion of revenue (%) | |||
| | | | ||
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. | |||
|- | |||
|Interest expense as a proportion of revenue (%) | |||
| | | | ||
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 3)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. | |||
|- | |||
| colspan="3" |'''<div style="text-align: center;">Growth stage 4</div>''' | |||
|- | |- | ||
| | |Cost of goods sold as a proportion of revenue (%) | ||
|36.13% | |||
|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. | |||
| | |||
| | |||
|- | |- | ||
| | |Operating expenses as a proportion of revenue (%) | ||
| | |174.39% | ||
|Research suggests that it's best to use a similar margin rate as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. | |||
|4 | |||
|- | |- | ||
| | |Tax rate (%) | ||
|(1.94)% | |||
|Research suggests that it's best to use a similar rate as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. | |||
| | |||
| | |||
|- | |- | ||
| | |Depreciation and amortisation rate (%) | ||
|47.29% | |||
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. | |||
| | |||
| | |||
|- | |- | ||
| | |Fixed Capital Investment (FCInv) as a proportion of revenue (%) | ||
| | | 6.25% | ||
|7 | |Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. | ||
|- | |- | ||
| | |Working Capital Investment (WCInv) as a proportion of revenue (%) | ||
| 2.13% | |||
|Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. | |||
|2 | |||
| | |||
|- | |- | ||
| | |Net borrowing as a proportion of revenue (%) | ||
|0% | |||
| | |Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. | ||
|( | |||
|- | |- | ||
| | |Interest expense as a proportion of revenue (%) | ||
| | |0% | ||
|' | |Research suggests that it's best to use a similar amount as the one used by peers that are in the same growth stage (i.e. growth stage 4)<ref name=":7" />. Information on the peers and the calculation of the figure used here can be found in the appendix of this report. | ||
| | |} | ||
== Risks == | |||
[[File:DALL·E 2023-10-25 16.02.20 - Vector design of a pie chart representing the various risks associated with investing in Arctic Shores segments include Financial Risk, Market Compet.png|thumb|A vector design of a pie chart representing various risks associated with investing in Arctic Shores.]] | |||
As with any investment, investing in Arctic Shores carries a level of risk. Overall, based on the Arctic Shores' adjusted beta (i.e. N/A), the degree of risk associated with an investment in Arctic Shores is 'high'. | |||
Here, to estimate the adjusted beta, we used the iShares MSCI World ETF to represent the market portfolio; and in terms of the time period and frequency of observations, we used the two available share price Arctic Shores data points. We note that the amount of available data observations for Arctic Shores is less than what's typically used in the five years of monthly data beta calculation (i.e. two observations vs. 60 observations), and accordingly, calculating the beta of such a company has been considered by many to be abnormal; however, for the benefit of simplifying investment comparisons and decision making, we believe that a single standardised risk measure is useful, and that the most appropriate measure is beta. | |||
The beta value in a future period has been found to be on average closer to the mean value of 1.0, and because valuation is forward-looking, it is logical to adjust the raw beta so it more accurately predicts a future beta. In addition, here, we have assumed that for an investment to be considered 'high' risk, it must have a beta value of 1.5 or more. Further information about the beta ratings can be found in the appendix section of this report. | |||
=== Early-stage investment === | |||
Arctic Shores is at one of the earliest stages of the business lifecycle, and the failure rate of companies at that stage is usually much higher than those at a later stage. As of 2022, 57% of companies that are incorporated in the United Kingdom fail within the first five years of the companies incorporation, according to the Office for National Statistics.<ref>https://www.ons.gov.uk/businessindustryandtrade/business/activitysizeandlocation/bulletins/businessdemography/2020#the-south-west-continued-to-have-the-highest-five-year-survival-rate</ref> We note that Arctic Shores is 10 years old as of 24th October 2023. | |||
=== Illiquid investment === | |||
The number of transactions in shares of private companies is usually significantly lower than in public companies, typically resulting in it taking longer to sell shares in private companies at a price that is at least equal to the price that the shares were bought at. Accordingly, the Arctic Shores investment opportunity is considered to be higher risk than more liquid companies. | |||
=== Financial Risk === | |||
The details of the financial health, including the valuation, revenue, and profitability of Arctic Shores Limited, are not publicly disclosed, making it challenging for investors to assess the financial risk fully. Moreover, the small uplift in funding between two rounds and a debt financing round might indicate financial constraints or cautious growth strategies.<ref>https://www.enterprisetimes.co.uk/2023/01/16/arctic-shores-raises-5-75-million-in-series-b-funding-round/</ref> | |||
=== Market Competition === | |||
As a provider of psychometric assessments, Arctic Shores operates in a competitive market with several other established players. The competition might affect the company's market share and profitability. | |||
=== Technological Changes === | |||
The company's operations heavily rely on game technology, behavioral science, and potentially AI. Rapid technological changes or inability to keep up with such changes could pose a risk. | |||
=== Regulatory Risks === | |||
Being in the recruitment and assessment sector, Arctic Shores might face regulatory challenges, especially when expanding internationally. Different regions have varying regulations concerning recruitment, data privacy, and assessments which could affect the company’s operations. | |||
=== Customer Acquisition and Retention === | |||
The success of Arctic Shores in acquiring and retaining customers, especially large organisations, is crucial for its revenue generation and growth. | |||
| | === Reputation Risk === | ||
| | The company’s reputation among its clients and within the industry is vital for its success. Any negative publicity or failure to deliver as promised could adversely affect its reputation and, subsequently, its financial performance. | ||
=== Investor Relations === | |||
The investor relations and the ability to secure further funding for growth or operations is also a critical aspect. The company has had several funding rounds, and the continuation of this support is vital for its sustainability and expansion.<ref>https://www.cbinsights.com/company/arctic-shores/financials</ref><ref>https://www.crunchbase.com/organization/arctic-shores/company_financials#:~:text=%23%20%E3%80%903%E2%80%A0Arctic%20Shores%20,Log%20in%20to%20view%20data</ref> | |||
| | |||
| | == Valuation == | ||
| | |||
| | === What's the expected return of an investment in the company?edit === | ||
The Stockhub users estimate that the expected return of an investment in the company over the next five years is ccc%, which equates to an annual return of ccc%. In other words, an £100,000 investment in the company is expected to return £301,600 in five years time. The assumptions used to estimate the return figure can be found in the table below. | |||
| | Assuming that a suitable return level over five years is 25% per year or less, and Arctic Shores achieves its expected return level (of cc%), then an investment in the company is considered to be an 'suitable' one. | ||
| | |||
| | ===What are the assumptions used to estimate the return?=== | ||
| | |||
| | {| class="wikitable" | ||
| | |+ Key inputs | ||
| | !Description | ||
!Value | |||
!Commentary | |||
|- | |||
| Which valuation model do you want to use? | |||
|Discounted cash flow | |||
|Research suggests that in terms of estimating the expected return of an investment over a period of 12-months or more, the approach that is more accurate is the discounted cash flow approach<ref name=":5">Demirakos et al., 2010; Gleason et al., 2013</ref>, so that's the approach that he Stockhub users suggest to use here; nevertheless, for completeness purposes, separately, the valuation of the company is also estimated using the using the relative valuation approach (the valuation based on the relative approach can be found in the appendix of this report). | |||
Arctic Shores has never paid cash dividends, and on 7th February 2022, it said that it currently does not anticipate paying any cash dividends in the foreseeable future. Accordingly, the Stockhub users suggest using the free cash flow valuation method (rather than the dividend discount model). | |||
|- | |||
|Which financial forecasts to use? | |||
| Stockhub | |||
|The only available long-term forecasts (i.e. >15 years) are the ones that are supplied by the Stockhub users (the forecasts can be found in the financials section of this report), so the Stockhub users suggest using those. | |||
|- | |||
| colspan="3" |'''<div style="text-align: center;">Growth stage 1</div>''' | |||
|- | |- | ||
| | |Discount rate (%) | ||
| | |30% | ||
| | |There are two key risk parameters for a firm that need to be estimated: its cost of equity and its cost of debt. A key way to estimate the cost of equity is by looking at the beta (or betas) of the company in question, the cost of debt from a measure of default risk (an actual or synthetic rating) and apply the market value weights for debt and equity to come up with the cost of capital. | ||
| | |- | ||
| | |Probability of success (%) | ||
| | |70% | ||
| | |Research suggests that a suitable rate for a company in this growth stage (i.e. stage 1) is 70%. | ||
|- | |||
| | | colspan="3" |'''<div style="text-align: center;">Growth stage 2</div>''' | ||
| | |||
|'''2 | |||
|- | |- | ||
| | |Discount rate (%) | ||
| 15% | |||
|There are two key risk parameters for a firm that need to be estimated: its cost of equity and its cost of debt. A key way to estimate the cost of equity is by looking at the beta (or betas) of the company in question, the cost of debt from a measure of default risk (an actual or synthetic rating) and apply the market value weights for debt and equity to come up with the cost of capital. | |||
| | |- | ||
|( | |Probability of success (%) | ||
| 80% | |||
| Research suggests that a suitable rate for a company in this growth stage (i.e. stage 2) is 80%. | |||
| | |||
|( | |||
| | |||
|( | |||
|- | |- | ||
| | | colspan="3" |'''<div style="text-align: center;">Growth stage 3</div>''' | ||
| | |||
|- | |- | ||
| | |Discount rate (%) | ||
| | | 10% | ||
| | |There are two key risk parameters for a firm that need to be estimated: its cost of equity and its cost of debt. A key way to estimate the cost of equity is by looking at the beta (or betas) of the company in question, the cost of debt from a measure of default risk (an actual or synthetic rating) and apply the market value weights for debt and equity to come up with the cost of capital. | ||
|- | |- | ||
| | |Probability of success (%) | ||
| | |100% | ||
| | |Research suggests that a suitable rate for a company in this growth stage (i.e. stage 3) is 100%. | ||
| | |- | ||
| | | colspan="3" |'''<div style="text-align: center;">Growth stage 4</div>''' | ||
| | |||
|- | |- | ||
| | |Discount rate (%) | ||
| 10% | |||
|There are two key risk parameters for a firm that need to be estimated: its cost of equity and its cost of debt. A key way to estimate the cost of equity is by looking at the beta (or betas) of the company in question, the cost of debt from a measure of default risk (an actual or synthetic rating) and apply the market value weights for debt and equity to come up with the cost of capital. | |||
| | |||
| | |||
|- | |- | ||
| | |Probability of success (%) | ||
| | | 100% | ||
| | |Research suggests that a suitable rate for a company in this growth stage (i.e. stage 4) is 100%. | ||
|- | |- | ||
| | | colspan="3" |'''<div style="text-align: center;">Other key inputs</div>''' | ||
| | |- | ||
| | |What's the current value of the company? | ||
| | |$38 million | ||
| | |The firm valuation is between $30m and $46m as of January 2023, according to Dealroom.co estimates.<ref name=":2">https://app.dealroom.co/companies/arctic_shores/</ref> The valuation is based on either of: the publicly disclosed value, or an estimate that is based on the last funding round amount, using similar rounds as benchmarks. | ||
| | |||
|- | |- | ||
| | |Which time period do you want to use to estimate the expected return? | ||
| | | Between now and five years time | ||
| | |Research suggests that following a market crash, the average amount of time it takes for the price of a stock market to return to its pre-crash level (i.e. the recovery period) is at least three years.<ref>https://www.newyorkfed.org/mediabrary/media/medialibrary/media/research/staff_reports/research_papers/9809.pdf</ref> Accordingly, Stockhub suggests that to account for general market cyclicity, it's best to estimate the expected return of the company between now and five years time. | ||
|- | |- | ||
|Which valuation recommendation method do you want to use? | |||
|Relative | |||
|There's two main types of valuation recommendation methods, relative and absolute. The relative method determines the investment recommendation relative to other investments (e.g. the investment is "suitable" if it's within say the top 10% of the investment universe in terms of investment returns), whereas the absolute method determines the recommendation based on a fixed return amount (e.g. the investment is "suitable" if it returns 50% or more). Assuming sufficient data, the Stockhub users suggest using the relative method. | |||
|- | |||
|Which top proportion of the investment universe constitutes a "suitable" rating? | |||
|10% | |||
|The proportion depends on the user's preference. That said, typically, the higher the proportion, the higher the risk associated with the investment. | |||
|- | |- | ||
| | |Which universe of investments do you want to use? | ||
| | |All investments | ||
| | |If the main objective of the user is to maximise investment returns, then the Stockhub users suggest using 'all investments' as the investment universe. | ||
| | |} | ||
| | ===Sensitivity analysis=== | ||
| | |||
The main inputs that result in the greatest change in the expected return of the Arctic Shores investment are, in order of importance (from highest to lowest): | |||
#The size of the total addressable market (the default size is $1.3 trillion); | |||
#Arctic Shores peak market share (the default share is 1%); and | |||
| | #The discount rate (the default time-weighted average rate is 16.50%). | ||
| | |||
| | The impact of a 50% change in those main inputs to the expected return of the Arctic Shores investment is shown in the table below. | ||
| | |||
| | {| class="wikitable sortable" | ||
| | |+Arctic Shores investment expected return sensitivity analysis | ||
| | !Main input | ||
| | !50% worse | ||
| | !Unchanged | ||
| | !50% better | ||
| | |- | ||
| | |The discount rate | ||
| | |ccc% | ||
| | |ccc% | ||
| | |ccc% | ||
| | |- | ||
|The size of the total addressable market | |||
|ccc% | |||
|ccc% | |||
|ccc% | |||
|- | |||
|Arctic Shores peak market share | |||
|ccc% | |||
| ccc% | |||
|ccc% | |||
|} | |||
==Actions== | |||
To invest in Arctic Shores, click [mailto:info@arcticshores.com here]. | |||
To contact Arctic Shores, click [mailto:info@arcticshores.com here]. | |||
| | |||
| | == Appendix == | ||
=== Relative valuation approach === | |||
As noted earlier in this report, research suggests that in terms of estimating the expected return of an investment over a period of 12-months or more, the approach that is more accurate is the discounted cash flow approach, so that's the approach that Stockhub suggests using to determine the estimated value of the company (the valuation based on the discounted cash flow approach can be found in the valuation section of this report); nevertheless, for completeness purposes, separately, the valuation of the company is also estimated using the relative valuation approach. | |||
| | |||
| | ==== What's the expected return of an investment in Arctic Shores using the relative valuation approach? ==== | ||
| | Stockhub estimates that the expected return of an investment in Arctic Shores over the next five years is 4044%, which equates to an annual return of 111%. In other words, an £1,000 investment in the company is expected to return £5044 in five years time. The assumptions used to estimate the return figure can be found in the table below. | ||
| | |||
==== What are the assumptions used to estimate the return figure? ==== | |||
{| class="wikitable" | |||
|+Key inputs | |||
!Description | |||
!Value | |||
!Commentary | |||
|- | |||
|Which type of multiple do you want to use? | |||
|Growth-adjusted EV/sales | |||
|For the numerator, the Stockhub users believe that to account for the different financial leverage levels of its peers, it's best to use enterprise value (EV), rather than price. For the denominator, the Stockhub users believe that because it expects Arctic Shores to reinvest almost all of its revenue back into the business over the five year forecast period and therefore its earnings are expected to be abnormally low over the period, it's best to use sales. Accordingly, the Stockhub users suggest valuing its company using the EV/sales ratio. However, the Stockhub users think that to take into account the different business lifecycle stages of its peers, the most suitable valuation multiple to use is the growth-adjusted EV/sales multiple, rather than the EV/sales multiple. | |||
|- | |- | ||
|In regards to the growth-adjusted EV/sales multiple, for the sales figure, which year to you want to use? | |||
|Year 5 | |||
|Stockhub suggests that to account for general market cyclicity, it's best to estimate the expected return of the company between now and five years time. | |||
|- | |||
|In regards to the growth-adjusted EV/sales multiple, for the sales growth figure, which year(s) do you want to use? | |||
|Year 6, from now | |||
|Stockhub suggests that for the sales growth figure, it's best to use Year 6. | |||
|- | |||
|In regards to the growth-adjusted EV/sales multiple, what multiple figure do you want to use? | |||
|0.19x | |||
|In Stockhub's view, Arctic Shores closest peers are AJ Bell, Hargreaves Lansdown, Robinhood Markets, Inc, Avanza Bank Holding AB and The Charles Schwab Corporation. | |||
|- | |||
|Which financial forecasts to use? | |||
|Stockhub | |||
|The only available forecasts are the ones that are supplied by the Stockhub company (the forecasts can be found in the financials section of this report), so Stockhub suggests using those. | |||
|- | |||
|What's the current value of the Stockhub company? | |||
|$38 million | |||
|The firm valuation is between $30m and $46m as of January 2023, according to Dealroom.co estimates.<ref name=":2" /> The valuation is based on either of: the publicly disclosed value, or an estimate that is based on the last funding round amount, using similar rounds as benchmarks. | |||
|- | |- | ||
| | |Which time period do you want to use to estimate the expected return? | ||
|Between now and five years time | |||
|Stockhub suggests that to account for general market cyclicity, it's best to estimate the expected return of the company between now and five years time. | |||
|- | |||
|Which valuation recommendation method do you want to use? | |||
|Relative | |||
|There's two main types of valuation recommendation methods, relative and absolute. The relative method determines the investment recommendation relative to other investments (e.g. the investment is "suitable" if it's within say the top 10% of the investment universe in terms of investment returns), whereas the absolute method determines the recommendation based on a fixed return amount (e.g. the investment is "suitable" if it returns 50% or more). Assuming sufficient data, the Stockhub users suggest using the relative method. | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
|- | |- | ||
| | |Which top proportion of the investment universe constitutes a "suitable" rating? | ||
| | |10% | ||
| | |The proportion depends on the user's preference. That said, typically, the higher the proportion, the higher the risk associated with the investment. | ||
|- | |- | ||
|'' | |Which universe of investments do you want to use? | ||
| | |All investments | ||
| | |If the main objective of the user is to maximise investment returns, then the Stockhub users suggest using 'all investments' as the investment universe. | ||
| | |} | ||
| | |||
| | ==== Sensitivity analysis ==== | ||
| | The main inputs that result in the greatest change in the expected return of the Arctic Shores investment are, in order of importance (from highest to lowest): | ||
| | |||
| | #The growth-adjusted EV/sales multiple (the default multiple 0.19); | ||
| | #Arctic Shores Year 5 sales figure (the default figure is £777 million); and | ||
| | #Arctic Shores Year 6 sales growth rate (the default rate is 63%). | ||
| | |||
| | The impact of a 50% change in those main inputs to the expected return of the Arctic Shores investment is shown in the table below. | ||
| | |||
| | {| class="wikitable sortable" | ||
| | |+Arctic Shores investment expected return sensitivity analysis | ||
| | !Main input | ||
| | !50% worse | ||
| | !Unchanged | ||
| | !50% better | ||
| | |- | ||
| | |The growth-adjusted EV/sales multiple | ||
| | |ccc% | ||
| | |ccc% | ||
| | |ccc% | ||
| | |- | ||
| | |Arctic Shores Year 5 sales figure | ||
| | |ccc% | ||
| | |ccc% | ||
| | |ccc% | ||
| | |- | ||
| | |Arctic Shores Year 6 sales growth rate | ||
| | |ccc% | ||
| | |ccc% | ||
| | |ccc% | ||
| | |} | ||
| | |||
| | ===Economic links to cash flow patterns === | ||
| | {| class="wikitable" | ||
| | |+Economic links to cash flow patterns | ||
| | |- | ||
| | !Cash flow type!!Introduction!!Growth!!Shake out!!Mature!!Decline | ||
| | |- | ||
| | |Operating|| style="background: red; color: white;" |-|| style="background: green; color: white;" |+ | ||
| | | style="background: orange; color: white;" | +/-|| style="background: green; color: white;" |+|| style="background: red; color: white;" |- | ||
| | |- | ||
| | |Investing|| style="background: red; color: white;" |-|| style="background: red; color: white;" |-|| style="background: orange; color: white;" |+/-|| style="background: red; color: white;" |- | ||
| | | style="background: green; color: white;" | + | ||
| | |- | ||
| | |Financing|| style="background: green; color: white;" |+|| style="background: green; color: white;" |+|| style="background: orange; color: white;" |+/-|| style="background: red; color: white;" |-|| style="background: orange; color: white;" |+/- | ||
|} | |||
=== Beta risk profile === | |||
{| class="wikitable" | |||
|+ | |||
!Beta value | |||
!Risk rating | |||
|- | |||
|style="background: green; color: white;" |0 to 0.50 | |||
|style="background: green; color: white;" | Low | |||
|- | |||
|style="background: orange; color: white;" | 0.50 to 1.50 | |||
|style="background: orange; color: white;" | Medium | |||
|- | |||
|style="background: red; color: white;" | 1.50 to 3.00 | |||
|style="background: red; color: white;" | High | |||
|- | |||
|style="background: purple; color: white;" | 3.00 and above | |||
|style="background: purple; color: white;" | Extremely high | |||
|} | |||
=== Arctic Shores adjusted beta calculation === | |||
{| class="wikitable" | |||
|+ | |||
!Date | |||
!iShares MSCI World ETF unit price (USD) | |||
!Arctic Shores share price (GBP) | |||
!iShares MSCI World ETF unit price change (%) | |||
!Arctic Shores share price change (%) | |||
|- | |||
|01/11/2018 | |||
|86.21 | |||
|N/A | |||
| | | | ||
| | | | ||
|- | |- | ||
| | |01/12/2018 | ||
|78.87 | |||
|N/A | |||
| -8.51% | |||
|N/A | |||
|- | |||
|01/01/2019 | |||
|84.96 | |||
|N/A | |||
|7.72% | |||
|N/A | |||
|- | |||
| | |01/02/2019 | ||
| | |87.49 | ||
| | |N/A | ||
| | |2.98% | ||
| | |N/A | ||
| | |- | ||
| | |01/03/2019 | ||
| | |88.79 | ||
| | |N/A | ||
| | | 1.49% | ||
| | |N/A | ||
| | |- | ||
| | |01/04/2019 | ||
| | |92.09 | ||
| | |N/A | ||
| | |3.72% | ||
| | |N/A | ||
| | |- | ||
| | |01/05/2019 | ||
| | |86.76 | ||
| | |N/A | ||
| | | -5.79% | ||
| | |N/A | ||
| | |- | ||
| | |01/06/2019 | ||
| | |91.02 | ||
| | |N/A | ||
| | |4.91% | ||
| | |N/A | ||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
|- | |- | ||
| | |01/07/2019 | ||
| | |91.86 | ||
| | |N/A | ||
|0.92% | |||
|N/A | |||
|- | |||
|01/08/2019 | |||
|89.84 | |||
|N/A | |||
| -2.20% | |||
|0 | | N/A | ||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
|- | |- | ||
| | |01/09/2019 | ||
| | |91.78 | ||
| | |N/A | ||
| | |2.16% | ||
| | |N/A | ||
| | |- | ||
| | |01/10/2019 | ||
| | |94.12 | ||
| | |N/A | ||
| | |2.55% | ||
|N/A | |||
|- | |||
|01/11/2019 | |||
|96.76 | |||
|N/A | |||
|2.80% | |||
| | |N/A | ||
| | |- | ||
| | |01/12/2019 | ||
| | |98.78 | ||
| | |N/A | ||
| | |2.09% | ||
| | |N/A | ||
| | |- | ||
| | |01/01/2020 | ||
| | |97.73 | ||
| | |N/A | ||
| | | -1.06% | ||
| | |N/A | ||
| | |||
| | |||
| | |||
| | |||
| | |||
| | |||
|- | |- | ||
| | |01/02/2020 | ||
|89.67 | |||
|N/A | |||
| -8.25% | |||
|N/A | |||
|- | |- | ||
| | |01/03/2020 | ||
| | |77.93 | ||
| | |N/A | ||
| -13.09% | |||
|N/A | |||
|- | |- | ||
| | |01/04/2020 | ||
| | |86.36 | ||
| | |N/A | ||
|10.82% | |||
|N/A | |||
|- | |- | ||
| | |01/05/2020 | ||
| | |90.7 | ||
| | |N/A | ||
|5.03% | |||
|N/A | |||
|- | |- | ||
| | |01/06/2020 | ||
|1% | |92.14 | ||
| | |N/A | ||
|1.59% | |||
|N/A | |||
|- | |- | ||
| | |01/07/2020 | ||
| | |96.65 | ||
| | |N/A | ||
|4.89% | |||
|N/A | |||
|- | |- | ||
| | |01/08/2020 | ||
| | |102.96 | ||
| | |N/A | ||
|6.53% | |||
|N/A | |||
|- | |- | ||
| | |01/09/2020 | ||
|99.52 | |||
|N/A | |||
| -3.34% | |||
|N/A | |||
|- | |- | ||
| | |01/10/2020 | ||
| | |96.53 | ||
| | |N/A | ||
| -3.00% | |||
|N/A | |||
|- | |- | ||
| | |01/11/2020 | ||
| | |108.94 | ||
| | |N/A | ||
|12.86% | |||
|N/A | |||
|- | |- | ||
| | |01/12/2020 | ||
| | |112.41 | ||
| | |N/A | ||
|3.19% | |||
|N/A | |||
|- | |- | ||
| | |01/01/2021 | ||
| | |111.49 | ||
| | |N/A | ||
| -0.82% | |||
|N/A | |||
|- | |- | ||
| | |01/02/2021 | ||
| | |114.27 | ||
| | |N/A | ||
|2.49% | |||
|N/A | |||
|- | |- | ||
| | |01/03/2021 | ||
|118.49 | |||
|N/A | |||
|3.69% | |||
|N/A | |||
|- | |- | ||
| | |01/04/2021 | ||
| | |123.61 | ||
| | |N/A | ||
|4.32% | |||
|N/A | |||
|- | |- | ||
| | |01/05/2021 | ||
| | |125.6 | ||
| | |N/A | ||
|1.61% | |||
|N/A | |||
|- | |- | ||
| | |01/06/2021 | ||
| | |126.57 | ||
| | |N/A | ||
|0.77% | |||
|N/A | |||
|- | |- | ||
| | |01/07/2021 | ||
| | |128.83 | ||
| | |N/A | ||
|1.79% | |||
|N/A | |||
|- | |- | ||
| | |01/08/2021 | ||
| | |132.02 | ||
| | |N/A | ||
|2.48% | |||
|N/A | |||
|- | |- | ||
| | |01/09/2021 | ||
| | |126.46 | ||
| | |N/A | ||
| -4.21% | |||
|N/A | |||
|- | |- | ||
| | |01/10/2021 | ||
| | |133.84 | ||
| | |N/A | ||
|5.84% | |||
|N/A | |||
|- | |- | ||
| | |01/11/2021 | ||
| | |131.1 | ||
| | |N/A | ||
| -2.05% | |||
|N/A | |||
|- | |- | ||
| | |01/12/2021 | ||
|135.32 | |||
|N/A | |||
|3.22% | |||
|N/A | |||
|- | |- | ||
| | |01/01/2022 | ||
| | |128.32 | ||
| | |N/A | ||
| -5.17% | |||
|N/A | |||
|- | |- | ||
| | |01/02/2022 | ||
| | |124.58 | ||
| | |N/A | ||
| -2.91% | |||
|N/A | |||
|- | |- | ||
| | |01/03/2022 | ||
| | |128.16 | ||
| | |N/A | ||
|2.87% | |||
|N/A | |||
|- | |- | ||
| | |01/04/2022 | ||
| | |117.42 | ||
| | |N/A | ||
| -8.38% | |||
|N/A | |||
|- | |- | ||
| | |01/05/2022 | ||
| | |117.94 | ||
| | |N/A | ||
|0.44% | |||
|N/A | |||
|- | |- | ||
| | |01/06/2022 | ||
| | |106.88 | ||
| | |N/A | ||
| -9.38% | |||
|N/A | |||
|- | |- | ||
| | |01/07/2022 | ||
| | |115.57 | ||
| | |N/A | ||
|8.13% | |||
|N/A | |||
|- | |- | ||
| | |01/08/2022 | ||
| | |110.28 | ||
| | |N/A | ||
| -4.58% | |||
|N/A | |||
|- | |- | ||
| | |01/09/2022 | ||
|99.95 | |||
|N/A | |||
| -9.37% | |||
|N/A | |||
|- | |- | ||
| | |01/10/2022 | ||
| | |107.42 | ||
| | |N/A | ||
|7.47% | |||
|N/A | |||
|- | |- | ||
| | |01/11/2022 | ||
| | |115.44 | ||
| | |N/A | ||
|7.47% | |||
|N/A | |||
|- | |- | ||
| | |01/12/2022 | ||
| | |109.25 | ||
| | |N/A | ||
| -5.36% | |||
|N/A | |||
|- | |- | ||
| | |01/01/2023 | ||
| | |117.01 | ||
| | |N/A | ||
|7.10% | |||
|N/A | |||
|- | |- | ||
| | |01/02/2023 | ||
| | |113.98 | ||
| | |N/A | ||
| -2.59% | |||
|N/A | |||
|- | |- | ||
| | |01/03/2023 | ||
| | |117.67 | ||
| | |N/A | ||
|3.24% | |||
|N/A | |||
|- | |- | ||
| | |01/04/2023 | ||
| | |119.79 | ||
| | |N/A | ||
|1.80% | |||
|N/A | |||
|- | |- | ||
| | |01/05/2023 | ||
| | |118.6 | ||
| | |N/A | ||
| -0.99% | |||
|N/A | |||
|- | |- | ||
| | |01/06/2023 | ||
|124.52 | |||
|N/A | |||
|4.99% | |||
|N/A | |||
|- | |- | ||
| | |01/07/2023 | ||
| | |128.54 | ||
| | |N/A | ||
|3.23% | |||
|N/A | |||
|- | |- | ||
| | |01/08/2023 | ||
| | |125.7 | ||
| | |N/A | ||
| -2.21% | |||
|N/A | |||
|- | |- | ||
| | |01/09/2023 | ||
| | |120.17 | ||
| | |N/A | ||
| -4.40% | |||
|N/A | |||
|- | |- | ||
| | |01/10/2023 | ||
| | |118.3 | ||
| | |N/A | ||
| -1.56% | |||
|N/A | |||
|- | |- | ||
| | |24/10/2023 | ||
| | |118.3 | ||
| | |N/A | ||
|0.00% | |||
|N/A | |||
|} | |||
{| class="wikitable" | |||
|+Arctic Shores beta and adjusted beta value | |||
! | |||
!Beta | |||
!Adjusted beta | |||
!Comment(s) | |||
|- | |- | ||
| | |Consistent (monthly) intervals between data points | ||
| | |N/A | ||
| | |N/A | ||
|Here, when there is no valuation event, we have assumed that the share price is the same as the previous month, and, therefore, there has been no change in the share price. For example, there was no Arctic Shores valuation event in January 2022, so we have assumed that the valuation of Arctic Shores is the same in January 2022 as the previous month of December 2020, and, therefore, the share price change in January is 0%. | |||
|- | |- | ||
| | |Inconsistent intervals between data points | ||
| | |N/A | ||
| | |N/A | ||
|Because there's only two Arctic Shores valuation events, and, therefore, two, available data points, calculating beta based on inconsistent intervals between data points seems to be the best approach. | |||
| | |||
|} | |} | ||
== | ===Funding history=== | ||
{| class="wikitable" | {| class="wikitable" | ||
|+ | |+Arctic Shores Funding<ref name=":2" /> | ||
! | !Date | ||
! | !Investors | ||
! | !Amount | ||
!Pre-money valuation | |||
!Round | |||
|- | |- | ||
| | | - | ||
| | |Home | ||
| | |N/A | ||
|N/A | |||
| - (not yet verified) | |||
|- | |- | ||
| | |Dec 2017 | ||
| | |N/A | ||
| | |N/A | ||
|N/A | |||
|Seed (not yet verified) | |||
|- | |- | ||
| | |Sep 2019<ref>https://www.privateequitywire.co.uk/beringea-leads-usd55m-investment-arctic-shores/</ref> | ||
|Beringea, Candy Ventures | |||
|$5.5m | |||
|N/A | |||
|Series A | |||
|- | |- | ||
| | |Feb 2020 | ||
| | |Tech Nation | ||
| | |N/A | ||
|N/A | |||
|Support Program | |||
|- | |- | ||
| | |Jan 2022 | ||
| | |Standard Treasury | ||
| | |£1.5m | ||
|N/A | |||
|Debt (not yet verified) | |||
|- | |- | ||
| | |Jan 2023<ref>https://www.arcticshores.com/news/arctic-shores-closes-5.75m-series-b-to-spearhead-the-soft-skills-assessment-market-and-accelerate-growth</ref> | ||
|Beringea, Calculus Capital, Praetura Ventures | |||
|£5.8m | |||
|N/A | |||
|Series B | |||
|- | |- | ||
| | | colspan="2" |'''Total Funding''' | ||
| | |'''$13.1m''' | ||
| | | | ||
| | |||
|} | |||
{| class="wikitable sortable" | |||
|+ | |||
!Date | |||
!Total number of issues shared | |||
!New shares | |||
!Class of shares | |||
!Comments | |||
|- | |- | ||
| | |28/06/2013<ref>https://find-and-update.company-information.service.gov.uk/company/08589048/filing-history/MzA4MDYyNjc5N2FkaXF6a2N4/document?format=pdf&download=0</ref> | ||
| | |2 | ||
| | |2 | ||
|Ordinary | |||
| | |||
|- | |- | ||
| | |28/01/2014<ref>https://find-and-update.company-information.service.gov.uk/company/08589048/filing-history/MzA5NTA0NTQ5NGFkaXF6a2N4/document?format=pdf&download=0</ref> | ||
|2,000,000 | |||
|1,999,998 | |||
|Ordinary | |||
|Sub-division of shares. | |||
|- | |- | ||
|10/12/2014<ref>https://find-and-update.company-information.service.gov.uk/company/08589048/filing-history/MzExMzIyNTEwM2FkaXF6a2N4/document?format=pdf&download=0</ref> | |||
| 10 | |2,169,521 | ||
|169,521 | |||
|Ordinary | |||
| | |||
|- | |- | ||
| | |23/06/2016<ref name=":3">https://find-and-update.company-information.service.gov.uk/company/08589048/filing-history/MzE1NjI1NzAyM2FkaXF6a2N4/document?format=pdf&download=0</ref> | ||
| | |2,386,883 | ||
| | |217,362 | ||
|Ordinary | |||
| | |||
|- | |- | ||
| | |23/06/2016<ref name=":3" /> | ||
|2,864,189 | |||
|477,306 | |||
|Ordinary | |||
| | |||
|- | |- | ||
| | |08/02/2017<ref>https://find-and-update.company-information.service.gov.uk/company/08589048/filing-history/MzE2ODUyNjQ5MmFkaXF6a2N4/document?format=pdf&download=0</ref> | ||
| | |2,976,372 | ||
| | |112,183 | ||
|Ordinary | |||
| | |||
|- | |- | ||
| | |20/06/2017<ref>https://find-and-update.company-information.service.gov.uk/company/08589048/filing-history/MzE3ODQ0ODk0NmFkaXF6a2N4/document?format=pdf&download=0</ref> | ||
| | |3,095,715 | ||
| | |119,343 | ||
|Ordinary | |||
| | |||
|- | |- | ||
| | |04/08/2017<ref>https://find-and-update.company-information.service.gov.uk/company/08589048/filing-history/MzE4MjI2NDg0NWFkaXF6a2N4/document?format=pdf&download=0</ref> | ||
|3,286,660 | |||
|190,945 | |||
|Ordinary | |||
| | |||
|- | |- | ||
| | |10/10/2017<ref>https://find-and-update.company-information.service.gov.uk/company/08589048/filing-history/MzE4NzI4NjEzN2FkaXF6a2N4/document?format=pdf&download=0</ref> | ||
|3,389,295 | |||
|102,635 | |||
|Ordinary | |||
| | |||
|- | |- | ||
| | |09/07/2018<ref>https://find-and-update.company-information.service.gov.uk/company/08589048/filing-history/MzIwOTMzOTQzOWFkaXF6a2N4/document?format=pdf&download=0</ref> | ||
|3,593,670 | |||
|204,375 | |||
|Ordinary | |||
| | |||
|- | |- | ||
| | |'''18/10/2018<ref>https://find-and-update.company-information.service.gov.uk/company/08589048/filing-history/MzIxNzI5Mjg0MmFkaXF6a2N4/document?format=pdf&download=0</ref>''' | ||
| | |'''3,969,722''' | ||
|There's | |'''376,052''' | ||
|'''Ordinary''' | |||
|There's a discrepancy between the total number of shares in this table and in the company's filing (3,969,722 vs. 3,978,195), a difference of 8,473 shares. The 8,473 shares seem to relate to the company Needham Consultancy Ltd <ref name=":12" /> and/or to the person James Williams. <ref>https://find-and-update.company-information.service.gov.uk/company/08589048/filing-history/MzIwOTYwOTkxOGFkaXF6a2N4/document?format=pdf&download=0</ref> | |||
|- | |- | ||
| | |22/08/2019<ref>https://find-and-update.company-information.service.gov.uk/company/08589048/filing-history/MzI0MjM4MzA2M2FkaXF6a2N4/document?format=pdf&download=0</ref> | ||
| | |4,025,502 | ||
| | |55,780 | ||
|Ordinary | |||
| | |||
|- | |||
|28/08/2019<ref>https://find-and-update.company-information.service.gov.uk/company/08589048/filing-history/MzI0MjgxNDQ4OGFkaXF6a2N4/document?format=pdf&download=0</ref> | |||
|4,899,547 | |||
|874,045 | |||
|A Ordinary | |||
| | |||
|- | |- | ||
| | |20/04/2022<ref>https://find-and-update.company-information.service.gov.uk/company/08589048/filing-history/MzMzNjczNjk5MGFkaXF6a2N4/document?format=pdf&download=0</ref> | ||
|5,102,287 | |||
|202,740 | |||
|Ordinary | |||
| | |||
| | |||
|- | |- | ||
| | |20/04/2022<ref name=":4">https://find-and-update.company-information.service.gov.uk/company/08589048/filing-history/MzMzNjczODA5OWFkaXF6a2N4/document?format=pdf&download=0</ref> | ||
| | |5,104,674 | ||
| | |2,387 | ||
| | |Ordinary | ||
| | |||
|- | |- | ||
| | |20/04/2022<ref name=":4" /> | ||
| | |5,112,534 | ||
| | |7,860 | ||
| | |Ordinary | ||
| | |||
|- | |- | ||
| | |20/04/2022<ref name=":4" /> | ||
|5,192,534 | |||
|80,000 | |||
|Ordinary | |||
| | |||
= | |||
| | |||
|- | |- | ||
| | |20/04/2022<ref name=":4" /> | ||
|5,193,158 | |||
| | |624 | ||
|Ordinary | |||
| | |||
|- | |- | ||
| | |20/04/2022<ref name=":4" /> | ||
| | |5,195,206 | ||
| | |2,048 | ||
|Ordinary | |||
| | |||
|- | |- | ||
| | |21/04/2022<ref name=":5" /> | ||
| | |5,195,455 | ||
| | |249 | ||
|Ordinary | |||
| | |||
|- | |- | ||
| | |21/04/2022<ref name=":5">https://find-and-update.company-information.service.gov.uk/company/08589048/filing-history/MzMzNjczODM0NWFkaXF6a2N4/document?format=pdf&download=0</ref> | ||
| | |5,195,704 | ||
| | |249 | ||
|Ordinary | |||
| | |||
|- | |- | ||
| | |05/01/2023<ref name=":6">https://find-and-update.company-information.service.gov.uk/company/08589048/filing-history/MzM2NDc1NjM5NGFkaXF6a2N4/document?format=pdf&download=0</ref> | ||
| | |5,211,261 | ||
| | |15,557 | ||
|Ordinary | |||
| | |||
|- | |||
|05/01/2023<ref name=":6" /> | |||
|5,397,253 | |||
|185,992 | |||
|A Ordinary | |||
| | |||
|- | |- | ||
| | |05/01/2023<ref name=":6" /> | ||
|5,619,476 | |||
|222,223 | |||
|A Ordinary | |||
| | |||
|- | |- | ||
| | |05/01/2023<ref name=":6" /> | ||
| | |6,119,476 | ||
| | |500,000 | ||
|B Ordinary | |||
| | |||
|- | |- | ||
| | |05/01/2023<ref name=":6" /> | ||
| | |6,254,930 | ||
| | |135,454 | ||
|A1 Ordinary | |||
| | |||
|- | |- | ||
| | |05/01/2023<ref name=":6" /> | ||
| | |6,390,384 | ||
| | |135,454 | ||
|A2 Ordinary | |||
| | |||
|- | |- | ||
| | |05/01/2023<ref name=":6" /> | ||
| | |6,810,486 | ||
|420,102 | |||
| | |B1 Ordinary | ||
| | |||
| | |||
|- | |- | ||
| | |05/01/2023<ref name=":6" /> | ||
| | |7,230,588 | ||
| | |420,102 | ||
| | |B2 Ordinary | ||
| | |||
|- | |- | ||
| | |24/02/2023<ref name=":7" /> | ||
| | |7,391,699 | ||
| | |161,111 | ||
| | |A Ordinary | ||
| | |||
|- | |- | ||
| | |24/02/2023<ref name=":7">https://find-and-update.company-information.service.gov.uk/company/08589048/filing-history/MzM3MDQ1ODAwMGFkaXF6a2N4/document?format=pdf&download=0</ref> | ||
|7,416,587 | |||
| | |24,888 | ||
| | |A Ordinary | ||
| | |||
| | |||
|- | |- | ||
|11/04/2023<ref name=":8" /> | |||
|7,417,835 | |||
|1,248 | |||
|Ordinary | |||
| | |||
|- | |- | ||
| | |11/04/2023<ref name=":8">https://find-and-update.company-information.service.gov.uk/company/08589048/filing-history/MzM3NTczMDY3MGFkaXF6a2N4/document?format=pdf&download=0</ref> | ||
|7,418,035 | |||
|200 | |||
|Ordinary | |||
| | |||
|- | |- | ||
| | |25/05/2023<ref name=":9">https://www.telegraph.co.uk/business/2023/06/13/freetrade-stock-trading-start-up-valuation-plunge/</ref> | ||
| | |7,418,460 | ||
|425 | |||
|Ordinary | |||
| | |||
|- | |||
|25/05/2023<ref name=":9">https://find-and-update.company-information.service.gov.uk/company/08589048/filing-history/MzM4MDgwNDE2NWFkaXF6a2N4/document?format=pdf&download=0</ref> | |||
|7,418,560 | |||
|100 | |||
|Ordinary | |||
| | |||
|- | |- | ||
| | |29/08/2023<ref name=":10" /> | ||
| | |7,429,868 | ||
|11,308 | |||
|Ordinary | |||
| | |||
| | |||
|- | |- | ||
| | |29/08/2023<ref name=":10">https://find-and-update.company-information.service.gov.uk/company/08589048/filing-history/MzM5MTExNzM0OWFkaXF6a2N4/document?format=pdf&download=0</ref> | ||
| | |7,430,868 | ||
|1,000 | |||
|Ordinary | |||
| | |||
|- | |- | ||
| | |27/09/2023<ref name=":11" /> | ||
| | |7,442,549 | ||
|11,681 | |||
|Ordinary | |||
| | |||
|- | |- | ||
| | |27/09/2023<ref name=":11">https://find-and-update.company-information.service.gov.uk/company/08589048/filing-history/MzM5NDYzNTYyMmFkaXF6a2N4/document?format=pdf&download=0</ref> | ||
| | |7,443,199 | ||
|650 | |||
|Ordinary | |||
| | |||
|- | |- | ||
| | |'''Total''' | ||
| | | | ||
|'''7,268,501''' | |||
| | |||
| | |||
|} | |} | ||
{| class="wikitable sortable" | |||
|+ | |||
{| class="wikitable" | !Class of shares | ||
|+ | !Number of shares | ||
! | !Share class proportion of total shares (%) | ||
! | |||
! | |||
|- | |- | ||
| | |A Ordinary | ||
|1,282,260 | |||
|17.64% | |||
| | |||
| | |||
|- | |- | ||
| | |B Ordinary | ||
| | |500,000 | ||
| | |6.88% | ||
|- | |- | ||
| | |Ordinary | ||
| | |4,375,129 | ||
| | |60.19% | ||
|- | |- | ||
| | |A1 Ordinary | ||
| | |135,454 | ||
| | |1.86% | ||
|- | |- | ||
| | |A2 Ordinary | ||
| | |135,454 | ||
|1.86% | |||
| 1. | |||
|- | |- | ||
| | |B1 Ordinary | ||
| | |420,102 | ||
| | |5.78% | ||
|- | |- | ||
| | |B2 Ordinary | ||
| | |420,102 | ||
| | |5.78% | ||
|- | |- | ||
| | |'''Total''' | ||
| | |'''7,268,501''' | ||
| | |'''100.00%''' | ||
| | |} | ||
| | {| class="wikitable sortable" | ||
|+Shareholding as of 28th June 2023<ref name=":12">https://find-and-update.company-information.service.gov.uk/company/08589048/filing-history/MzM4NjIxOTA2MWFkaXF6a2N4/document?format=pdf&download=0</ref> | |||
!# | |||
!Number of shares | |||
!Share class | |||
!Name | |||
|- | |- | ||
| | |1 | ||
| | |1,000,000 | ||
| | |Ordinary | ||
| | |Robert Newry | ||
|- | |- | ||
| | |2 | ||
|1,000,000 | |||
| | |Ordinary | ||
| | |Safe Hammad | ||
| | |||
|- | |- | ||
| | |3 | ||
| | |38,543 | ||
| | |Ordinary | ||
| | |Andrew Needham | ||
|- | |- | ||
| | |4 | ||
| | |54,333 | ||
| | |Ordinary | ||
| | |Royston Jeans | ||
|- | |- | ||
| | |5 | ||
| | |64,500 | ||
| | |Ordinary | ||
| | |Sherief Hammad | ||
|- | |- | ||
| | |6 | ||
| | |6,522 | ||
| | |Ordinary | ||
| | |Caroline Elliman | ||
|- | |- | ||
| | |7 | ||
| | |96,097 | ||
| | |Ordinary | ||
| | |Oliver Schrader | ||
|- | |- | ||
| | |8 | ||
|36,077 | |||
| | |Ordinary | ||
| | |Patricia Armstrong | ||
| | |||
|- | |- | ||
| | |9 | ||
| | |170,406 | ||
| | |Ordinary | ||
| | |Malcolm Jackson | ||
|- | |- | ||
| | |10 | ||
| | |36,069 | ||
| | |Ordinary | ||
|Geoffrey Bailhache | |||
| | |||
|- | |- | ||
| | |11 | ||
| | |985,937 | ||
| | |Ordinary | ||
| | |Candy Ventures Sarl | ||
|- | |- | ||
| | |12 | ||
| | |153,234 | ||
| | |Ordinary | ||
| | |NT Asset (Cayman) Limited | ||
|- | |- | ||
| | |13 | ||
| | |0 | ||
| | |Ordinary | ||
| | |R Needham Consultancy Ltd. 74,756 shares have been transferred, on 7th September 2018. To where have the shares been transferred? | ||
|- | |- | ||
| | |14 | ||
| | |26,731 | ||
| | |Ordinary | ||
| | |Penjuru Capital Pte Ltd. | ||
|- | |- | ||
| | |15 | ||
| | |8,473 | ||
| | |Ordinary | ||
| | |James Williams | ||
|- | |- | ||
| | |16 | ||
| | |38,183 | ||
| | |Ordinary | ||
| | |M R Howe | ||
|- | |- | ||
| | |17 | ||
| | |26,731 | ||
| | |Ordinary | ||
| | |Half Brother Capital Ltd. | ||
|- | |- | ||
| | |18 | ||
| | |10,308 | ||
| | |Ordinary | ||
| | |J Arkwright | ||
|- | |- | ||
| | |19 | ||
| | |12,415 | ||
| | |Ordinary | ||
| | |R Graham | ||
|- | |- | ||
| | |20 | ||
| | |20,691 | ||
| | |Ordinary | ||
| | |R Ronaldshay (Earl of) | ||
|- | |- | ||
| | |21 | ||
| | |10,168 | ||
| | |Ordinary | ||
|R A Sangster | |||
| | |||
|- | |- | ||
| | |22 | ||
| | |50,839 | ||
| | |Ordinary | ||
| | |Giles Slinger | ||
|- | |- | ||
| | |23 | ||
| | |50,839 | ||
| | |Ordinary | ||
| | |Lucy Slinger | ||
|- | |- | ||
| | |24 | ||
| | |27,291 | ||
| | |Ordinary | ||
| | |Nick Wentworth-Stanley | ||
|- | |- | ||
| | |25 | ||
| | |16,946 | ||
| | |Ordinary | ||
| | |Martin Elphron and Eugenia Ephson | ||
|- | |- | ||
| | |26 | ||
| | |16,946 | ||
| | |Ordinary | ||
|A Wentworth-Stanley | |||
| | |||
|- | |- | ||
| | |27 | ||
| | |20,691 | ||
| | |Ordinary | ||
| | |Maria Nirusha Balaratham Trust | ||
|- | |- | ||
| | |28 | ||
| | |21,391 | ||
| | |Ordinary | ||
| | |Richard Wingfield | ||
|- | |- | ||
| | |29 | ||
| | |16,946 | ||
| | |Ordinary | ||
| | |Tower Pension Trustees Ltd. | ||
|- | |- | ||
| | |30 | ||
| | |20,691 | ||
| | |Ordinary | ||
| | |Jonathan Davie | ||
|- | |- | ||
| | |31 | ||
| | |20,691 | ||
| | |Ordinary | ||
| | |James Corcoran | ||
|- | |- | ||
| | |32 | ||
| | |10,168 | ||
| | |Ordinary | ||
| | |Kate Amin | ||
|- | |- | ||
| | |33 | ||
| | |12,415 | ||
| | |Ordinary | ||
| | |Guy Roxburghe | ||
|- | |- | ||
| | |34 | ||
| | |10,168 | ||
| | |Ordinary | ||
| | |Guy Sangster | ||
|- | |- | ||
| | |35 | ||
| | |10,308 | ||
| | |Ordinary | ||
| | |James Dean | ||
|- | |- | ||
| | |36 | ||
| | |10,308 | ||
| | |Ordinary | ||
| | |Harry Henderson | ||
|- | |- | ||
| | |37 | ||
| | |0 | ||
| | |Ordinary | ||
|8. | |Needham Consultancy Ltd. 8,473 shares have been transferred on 6th May 2018. To where have the shares been transferred? | ||
|- | |- | ||
| | |38 | ||
| | |9,721 | ||
| | |Ordinary | ||
| | |Christopher Milln | ||
|- | |- | ||
| | |39 | ||
| | |8,473 | ||
| | |Ordinary | ||
| | |Richard Benyon | ||
|- | |- | ||
| | |40 | ||
| | |7,866 | ||
| | |Ordinary | ||
| | |Atomico Angel Program I, LLC. | ||
|- | |- | ||
| | |41 | ||
| | |3,745 | ||
| | |Ordinary | ||
| | |Eugenia Ephson | ||
|- | |- | ||
| | |42 | ||
| | |24,972 | ||
| | |Ordinary | ||
| - | |Philip Green<ref>It seems the correct spelling of the first name is 'Philip', not 'Phillip', based on the following Linked-In page: https://www.linkedin.com/in/philip-green-35b38210/</ref> | ||
|- | |- | ||
| | |43 | ||
| | |713,809 | ||
| | |A Ordinary | ||
| | |Proven Growth and Income VCT Plc. | ||
|- | |- | ||
| | |44 | ||
| | |382,459 | ||
| | |A Ordinary | ||
| | |Proven VCT Plc. | ||
|- | |- | ||
| | |45 | ||
| | |7,860 | ||
| | |Ordinary | ||
| | |Alastair Frater | ||
|- | |- | ||
| | |46 | ||
| | |2,387 | ||
| | |Ordinary | ||
| | |Joe Wilson | ||
|- | |- | ||
| | |47 | ||
| | |249 | ||
| | |Ordinary | ||
| | |Calum Murphy | ||
|- | |- | ||
| | |48 | ||
| | |2,048 | ||
| | |Ordinary | ||
| | |David Cuthbertson | ||
|- | |- | ||
| | |49 | ||
| | |80,624 | ||
| | |Ordinary | ||
| | |Lara Montefiori | ||
|- | |- | ||
| | |50 | ||
| | |249 | ||
| | |Ordinary | ||
| | |Nisha Wasim | ||
|- | |- | ||
| | |51 | ||
| | |100 | ||
| | |Ordinary | ||
| | |Nathan Braithwaite | ||
|- | |- | ||
| | |52 | ||
| | |425 | ||
| | |Ordinary | ||
| | |Tom Satterthwaite | ||
|- | |- | ||
| | |53 | ||
| | |624 | ||
| | |Ordinary | ||
| | |Joel Yusupoff | ||
|- | |- | ||
| | |54 | ||
| | |624 | ||
| | |Ordinary | ||
| | |Mark Williamson | ||
|- | |- | ||
| | |55 | ||
| | |824 | ||
| | |Ordinary | ||
| | |Tara Franks | ||
|- | |- | ||
| | |56 | ||
| | |3,206 | ||
| | |A Ordinary | ||
| | |Robert Newry | ||
|- | |- | ||
| | |57 | ||
| | |3,206 | ||
| | |A Ordinary | ||
| | |Safe Hammad | ||
|- | |- | ||
| | |58 | ||
| | |420,102 | ||
| | |B1 Ordinary | ||
| | |Calculus Nominees Ltd. | ||
|- | |- | ||
| | |59 | ||
| | |420,102 | ||
| | |B2 Ordinary | ||
| | |Calculus Nominees Ltd. | ||
|- | |- | ||
| | |60 | ||
| | |350,000 | ||
| | |B Ordinary | ||
| | |MNL Nominees Ltd. | ||
|- | |- | ||
| | |61 | ||
| | |135,454 | ||
| | |A1 Ordinary | ||
| | |Calculus VCT Plc. | ||
|- | |- | ||
| | |62 | ||
| | |135,454 | ||
| | |A2 Ordinary | ||
| | |Calculus VCT Plc. | ||
|- | |- | ||
| | |63 | ||
| | |9,620 | ||
| | |A Ordinary | ||
|Malcolm Jackson | |||
| | |||
|- | |- | ||
| | |64 | ||
|8.017 | |||
| | |A Ordinary | ||
| | |NT Asset (Cayman) Limited | ||
| | |||
|- | |- | ||
| | |65 | ||
| | |150,000 | ||
| | |B Ordinary | ||
| | |MNL (BBI) Nominees Limited | ||
|- | |- | ||
| | |66 | ||
| | |11,224 | ||
| | |A Ordinary | ||
|Adam Hale | |||
|- | |- | ||
| | |67 | ||
| | |92,999 | ||
| | |A Ordinary | ||
|UK FF Nominees Ltd. | |||
|- | |- | ||
| | |68 | ||
| | |4,008 | ||
|A Ordinary | |||
|Sherief<ref>First name seems to be spelt incorrectly in the company's filing.</ref> Hammad | |||
|- | |- | ||
| | |69 | ||
| | |10,422 | ||
| | |A Ordinary | ||
|Giles Slinger | |||
|- | |- | ||
| | |70 | ||
| | |10,422 | ||
| | |A Ordinary | ||
|Lucy Slinger | |||
|- | |- | ||
| | |71 | ||
| | |9,620 | ||
| | |A Ordinary | ||
|Philip<ref>Company filing shows 'Phil' Green, which seems to relate to the company's existing shareholder 'Phillip' Green.</ref> Green | |||
|- | |- | ||
| | |72 | ||
| | |6,413 | ||
| | |A Ordinary | ||
|David Mills | |||
|- | |- | ||
| | |73 | ||
| | |4,810 | ||
| | |A Ordinary | ||
|John Woyton | |||
|- | |- | ||
| | |74 | ||
| | |4,008 | ||
| | |A Ordinary | ||
|Etedal Hammad | |||
|- | |||
|75 | |||
|94,341 | |||
|Ordinary | |||
|Needham Ventures Limited | |||
|- | |- | ||
| | |76 | ||
| | |8,017 | ||
| | |A Ordinary | ||
|Needham Ventures Limited | |||
|} | |} | ||
{| class="wikitable" | {| class="wikitable sortable" | ||
|+ | |+Aggregated shareholding as of 28th June 2023<ref name=":12" /> | ||
! | !# | ||
! | !Shareholder | ||
!Number of shares | |||
!Proportion of total shares (%) | |||
!Comment(s) | |||
|- | |- | ||
| | |1 | ||
|Robert Newry | |||
|1,003,206 | |||
|13.85% | |||
|Robert is one of the co-founders of Arctic Shores. He is also the CEO of the company. Further information about Robert can be found in the 'team' section of the report. | |||
|- | |- | ||
| | |2 | ||
|Safe Hammad | |||
|1,003,206 | |||
|13.85% | |||
|Safe is one of the co-founders of Arctic Shores. He is also an advisor of the company. Further information about Safe can be found in the 'team' section of the report. | |||
|- | |- | ||
| | |3 | ||
| | |Candy Ventures Sarl | ||
|985,937 | |||
|13.61% | |||
| | |||
|- | |- | ||
| | |4 | ||
| | |Calculus Nominees Ltd. | ||
|840,204 | |||
|11.60% | |||
| | |||
|- | |- | ||
| | |5 | ||
| | |Proven Growth and Income VCT Plc. | ||
|713,809 | |||
|9.86% | |||
| | |||
|- | |- | ||
| | |6 | ||
| | |Proven VCT Plc. | ||
|382,459 | |||
|5.28% | |||
| | |||
|- | |- | ||
| | |7 | ||
| | |MNL Nominees Ltd. | ||
| | |350,000 | ||
|4.83% | |||
| | | | ||
|- | |- | ||
| | |8 | ||
| | |Calculus VCT Plc. | ||
| | |270,908 | ||
| | |3.74% | ||
| | | | ||
|- | |- | ||
| | |9 | ||
| | |Malcolm Jackson | ||
| | |180,026 | ||
| | |2.49% | ||
| | | | ||
|- | |- | ||
|10 | |10 | ||
| | |NT Asset (Cayman) Limited | ||
| | |153,242 | ||
| | |2.12% | ||
| | | | ||
|- | |- | ||
| | |11 | ||
| | |MNL (BBI) Nominees Limited | ||
| | |150,000 | ||
| | |2.07% | ||
| | | | ||
|- | |- | ||
| | |12 | ||
| | |Needham Ventures Limited | ||
| | |102,358 | ||
| | |1.41% | ||
| | | | ||
|- | |- | ||
| | |13 | ||
| | |Oliver Schrader | ||
| | |96,097 | ||
| | |1.33% | ||
| | | | ||
|- | |- | ||
| | |14 | ||
| | |UK FF Nominees Ltd. | ||
| | |92,999 | ||
| | |1.28% | ||
| | | | ||
|- | |- | ||
| | |15 | ||
| | |Lara Montefiori | ||
| | |80,624 | ||
| | |1.11% | ||
| | | | ||
|- | |- | ||
| | |16 | ||
| | |Sherief Hammad | ||
| | |68,508 | ||
| | |0.95% | ||
| | | | ||
|- | |- | ||
| | |17 | ||
| | |Giles Slinger | ||
| | |61,261 | ||
| | |0.85% | ||
| | | | ||
|- | |- | ||
| | |18 | ||
| | |Lucy Slinger | ||
| | |61,261 | ||
| | |0.85% | ||
| | | | ||
|- | |- | ||
| | |19 | ||
| | |Royston Jeans | ||
| | |54,333 | ||
| | |0.75% | ||
| | | | ||
|- | |- | ||
| | |20 | ||
| | |Andrew Needham | ||
| | |38,543 | ||
| | |0.53% | ||
| | | | ||
|- | |- | ||
| | |21 | ||
| | |M R Howe | ||
| | |38,183 | ||
| | |0.53% | ||
| | | | ||
|- | |- | ||
| | |22 | ||
| | |Patricia Armstrong | ||
| | |36,077 | ||
| | |0.50% | ||
| | | | ||
|- | |- | ||
| | |23 | ||
| | |Geoffrey Bailhache | ||
| | |36,069 | ||
| | |0.50% | ||
| | | | ||
|- | |- | ||
| | |24 | ||
| | |Philip Green | ||
| | |34,592 | ||
| | |0.48% | ||
|Further information about Philip can be found by clicking here: https://www.linkedin.com/in/philip-green-35b38210/details/experience/ | |||
|- | |||
|25 | |||
|Nick Wentworth-Stanley | |||
|27,291 | |||
|0.38% | |||
| | | | ||
|- | |- | ||
| | |26 | ||
| | |Half Brother Capital Ltd. | ||
| | |26,731 | ||
| | |0.37% | ||
| | | | ||
|- | |- | ||
| | |27 | ||
| | |Penjuru Capital Pte Ltd. | ||
| | |26,731 | ||
| | |0.37% | ||
| | | | ||
|- | |- | ||
| | |28 | ||
| | |Richard Wingfield | ||
| | |21,391 | ||
| | |0.30% | ||
| | | | ||
|- | |- | ||
| | |29 | ||
| | |James Corcoran | ||
| | |20,691 | ||
| | |0.29% | ||
| | | | ||
|- | |- | ||
| | |30 | ||
| | |Jonathan Davie | ||
| | |20,691 | ||
| | |0.29% | ||
| | | | ||
|- | |- | ||
| | |31 | ||
| | |Maria Nirusha Balaratham Trust | ||
| | |20,691 | ||
| | |0.29% | ||
| | | | ||
|- | |- | ||
| | |32 | ||
| | |R Ronaldshay (Earl of) | ||
| | |20,691 | ||
| | |0.29% | ||
|The title "Earl of Ronaldshay" is a courtesy title for the eldest son and heir of the Marquess of Zetland. The title has been held by different individuals across generations within the Dundas family, with notable holders serving in significant political roles, particularly in relation to British colonial administration in India during the early 20th century.<ref>https://en.wikipedia.org/wiki/Marquess_of_Zetland</ref> | |||
|- | |||
|33 | |||
|A Wentworth-Stanley | |||
|16,946 | |||
|0.23% | |||
| | | | ||
|- | |- | ||
| | |34 | ||
| | |Martin Elphron and Eugenia Ephson | ||
| | |16,946 | ||
| | |0.23% | ||
| | | | ||
|- | |- | ||
| | |35 | ||
| | |Tower Pension Trustees Ltd. | ||
| | |16,946 | ||
| | |0.23% | ||
| | | | ||
|- | |- | ||
| | |36 | ||
| | |Guy Roxburghe | ||
| | |12,415 | ||
| | |0.17% | ||
| | | | ||
|- | |- | ||
| | |37 | ||
| | |R Graham | ||
| | |12,415 | ||
| | |0.17% | ||
| | | | ||
|- | |- | ||
| | |38 | ||
| | |Adam Hale | ||
| | |11,224 | ||
| | |0.15% | ||
| | | | ||
|- | |- | ||
| | |39 | ||
| | |Harry Henderson | ||
| | |10,308 | ||
| | |0.14% | ||
| | | | ||
|- | |- | ||
| | |40 | ||
| | |J Arkwright | ||
| | |10,308 | ||
| | |0.14% | ||
| | | | ||
|- | |- | ||
| | |41 | ||
| | |James Dean | ||
| | |10,308 | ||
| | |0.14% | ||
| | | | ||
|- | |- | ||
| | |42 | ||
| | |Guy Sangster | ||
| | |10,168 | ||
| | |0.14% | ||
| | | | ||
|- | |- | ||
| | |43 | ||
| | |Kate Amin | ||
| | |10,168 | ||
| | |0.14% | ||
| | | | ||
|- | |- | ||
| | |44 | ||
| | |R A Sangster | ||
| | |10,168 | ||
| | |0.14% | ||
| | | | ||
|- | |- | ||
| | |45 | ||
| | |Christopher Milln | ||
| | |9,721 | ||
| | |0.13% | ||
| | | | ||
|- | |- | ||
| | |46 | ||
| | |James Williams | ||
| | |8,473 | ||
| | |0.12% | ||
| | | | ||
|- | |- | ||
| | |47 | ||
| | |Richard Benyon | ||
| | |8,473 | ||
| | |0.12% | ||
| | | | ||
|- | |- | ||
| | |48 | ||
|7, | |Atomico Angel Program I, LLC. | ||
| | |7,866 | ||
|0.11% | |||
| | | | ||
|- | |- | ||
| | |49 | ||
|Alastair Frater | |||
|7,860 | |||
|0.11% | |||
| | | | ||
| | |- | ||
|50 | |||
|Caroline Elliman | |||
|6,522 | |||
|0.09% | |||
| | | | ||
|- | |||
|51 | |||
|David Mills | |||
|6,413 | |||
|0.09% | |||
| | | | ||
|- | |- | ||
| | |52 | ||
| | |John Woyton | ||
| | |4,810 | ||
|0.07% | |||
| | |||
|- | |- | ||
| | |53 | ||
| | |Etedal Hammad | ||
| | |4,008 | ||
|0.06% | |||
| | |||
|- | |- | ||
| | |54 | ||
| | |Eugenia Ephson | ||
| | |3,745 | ||
|0.05% | |||
| | |||
|- | |- | ||
| | |55 | ||
| | |Joe Wilson | ||
| | |2,387 | ||
|0.03% | |||
| | |||
|- | |- | ||
| | |56 | ||
| | |David Cuthbertson | ||
| | |2,048 | ||
|0.03% | |||
| | |||
|- | |- | ||
| | |57 | ||
| | |Tara Franks | ||
| | |824 | ||
|0.01% | |||
| | |||
|- | |- | ||
| | |58 | ||
| | |Joel Yusupoff | ||
| | |624 | ||
|0.01% | |||
| | |||
|- | |- | ||
| | |59 | ||
| | |Mark Williamson | ||
| | |624 | ||
|0.01% | |||
| | |||
| | |||
|- | |- | ||
| | |60 | ||
| | |Tom Satterthwaite | ||
| | |425 | ||
| | |0.01% | ||
| | |||
|- | |- | ||
| | |61 | ||
| | |Calum Murphy | ||
| | |249 | ||
| | |0.00% | ||
| | |||
|- | |- | ||
| | |62 | ||
| | |Nisha Wasim | ||
| | |249 | ||
| | |0.00% | ||
| | |||
|- | |- | ||
| | |63 | ||
| | |Nathan Braithwaite | ||
| | |100 | ||
| | |0.00% | ||
| | |||
|- | |- | ||
| | | | ||
| | |'''Total''' | ||
| | |'''7,242,551''' | ||
| | |'''100.00%''' | ||
| | |||
|} | |||
=== Additional information === | |||
The company misspelled its name as "Artic Shores Limited" on the official incorporation filing documents, but realised and corrected the error to "Arctic Shores Limited" within four days.<ref name=":15" /> | |||
=== Arctic Shores peer(s) === | |||
{| class="wikitable" | |||
|+ | |||
! | |||
!Arctic Shores Limited | |||
!Sova Assessment Limited | |||
! | |||
! | |||
! | |||
! | |||
! | |||
!Average (median) | |||
|- | |- | ||
| | ! colspan="6" |Relative valuation data | ||
! | |||
! | |||
! | |||
|- | |- | ||
| | |Local currency | ||
| | |GBP | ||
| | |GBP | ||
| | | | ||
| | |||
| | |||
| | |||
| | |||
|N/A | |||
|- | |- | ||
| | |Current market capitalisation (local currency, million) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
| | |||
| | |||
| | |||
|N/A | |||
|- | |- | ||
| | |Year ago sales | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
| | |||
| | |||
| | |||
|N/A | |||
|- | |- | ||
| | |Current sales | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | |N/A | ||
|- | |- | ||
| | |Sales growth rate (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
| | |||
| | |||
| | |||
|N/A | |||
|- | |- | ||
| | |Current cash | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
| | |||
| | |||
| | |||
|N/A | |||
|- | |- | ||
| | |Current debt | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
| | |||
| | |||
| | |||
|N/A | |||
|- | |- | ||
| | ! colspan="6" |Relative valuation metrics | ||
! | |||
! | |||
! | |||
|- | |- | ||
| | |Enterprise value/sales | ||
| | |N/A | ||
| | |N/A | ||
| | | | ||
| | |||
| | |||
| | |||
| | |||
| | |||
|- | |- | ||
| | |Growth-adjusted enterprise value/sales ratio | ||
| | |N/A | ||
| | |N/A | ||
| | | | ||
| | |||
| | |||
| | |||
| | |||
| | |||
|- | |- | ||
| | ! colspan="6" |Absolute valuation data | ||
! | |||
! | |||
! | |||
|- | |- | ||
| | |Lifecycle growth stage | ||
| | |Stage 1 (of 4) | ||
| | |Stage 1 (of 4) | ||
| | | | ||
| | |||
| | |||
| | |||
| | |||
|N/A | |||
|- | |- | ||
| | |Cost of goods sold as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
| | |||
| | |||
| | |||
| | |||
|- | |- | ||
| | |Operating expenses as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
| | |||
| | |||
| | |||
| | |||
|- | |- | ||
| | |Tax rate (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
| | |||
| | |||
| | |||
| | |||
|- | |- | ||
| | |Depreciation and amortisation rate (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
| | |||
| | |||
| | |||
| | |||
|- | |- | ||
| | |Fixed Capital Investment (FCInv) as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
| | |||
| | |||
| | |||
| | |||
|- | |- | ||
| | |Working Capital Investment (WCInv) as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
| | |||
| | |||
| | |||
| | |||
|- | |- | ||
| | |Net borrowing as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
| | |||
| | |||
| | |||
| | |||
|- | |- | ||
| | |Interest expense as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
| | |||
| | |||
| | |||
| | |||
|} | |||
{| class="wikitable" | |||
|+Key metrics for different stages of the business lifecycle | |||
! | |||
!Stage 1 | |||
!Stage 2 | |||
!Stage 3 | |||
!Stage 4 | |||
|- | |- | ||
| | |Cost of goods sold as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
|36.13% | |||
|- | |- | ||
| | |Operating expenses as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
|174.39% | |||
|- | |- | ||
| | |Tax rate (%) | ||
| | | | ||
| | | | ||
| | | | ||
|(1.94)% | |||
|- | |- | ||
| | |Depreciation and amortisation rate (%) | ||
| | | | ||
| | | | ||
| | | | ||
|47.29% | |||
|- | |- | ||
| | |Fixed Capital Investment (FCInv) as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
|6.25% | |||
|- | |- | ||
| | |Working Capital Investment (WCInv) as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
|2.13% | |||
|- | |- | ||
| | |Net borrowing as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
|0% | |||
|- | |- | ||
| | |Interest expense as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
|0% | |||
|} | |||
{| class="wikitable" | |||
|+Stage 1 | |||
! | |||
!Arctic Shores Limited | |||
!Sova Assessment Limited | |||
! | |||
!Median | |||
|- | |- | ||
| | |Cost of goods sold as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
|- | |- | ||
| | |Operating expenses as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
|- | |- | ||
| | |Tax rate (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
|- | |- | ||
| | |Depreciation and amortisation rate (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
|- | |- | ||
| | |Fixed Capital Investment (FCInv) as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
|- | |- | ||
| | |Working Capital Investment (WCInv) as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
|- | |- | ||
| | |Net borrowing as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
|- | |- | ||
| | |Interest expense as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
|} | |||
{| class="wikitable" | |||
|+Stage 2 | |||
! | |||
! | |||
! | |||
! | |||
!Median | |||
|- | |- | ||
| | |Cost of goods sold as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
|- | |- | ||
| | |Operating expenses as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
|- | |- | ||
| | |Tax rate (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
|- | |- | ||
| | |Depreciation and amortisation rate (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
|- | |- | ||
| | |Fixed Capital Investment (FCInv) as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
|- | |- | ||
| | |Working Capital Investment (WCInv) as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
|- | |- | ||
| | |Net borrowing as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
|- | |- | ||
| | |Interest expense as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
|} | |||
{| class="wikitable" | |||
|+Stage 3 | |||
! | |||
! | |||
! | |||
! | |||
!Median | |||
|- | |- | ||
| | |Cost of goods sold as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
|- | |- | ||
| | |Operating expenses as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
|- | |- | ||
| | |Tax rate (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
|- | |- | ||
| | |Depreciation and amortisation rate (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
|- | |- | ||
| | |Fixed Capital Investment (FCInv) as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
|- | |- | ||
| | |Working Capital Investment (WCInv) as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
|- | |- | ||
| | |Net borrowing as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
|- | |- | ||
| | |Interest expense as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
|} | |||
{| class="wikitable" | |||
|+Stage 4 | |||
! | |||
! | |||
! | |||
! | |||
!Median | |||
|- | |- | ||
| | |Cost of goods sold as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
|- | |- | ||
| | |Operating expenses as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
|- | |- | ||
| | |Tax rate (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
|- | |- | ||
| | |Depreciation and amortisation rate (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
|- | |- | ||
| | |Fixed Capital Investment (FCInv) as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
|- | |- | ||
| | |Working Capital Investment (WCInv) as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
|- | |- | ||
| | |Net borrowing as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
|- | |- | ||
| | |Interest expense as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | |} | ||
|4 | {| class="wikitable" | ||
|+Sova Assessment Limited | |||
!Year | |||
!1 | |||
!2 | |||
!3 | |||
!4 | |||
!5 | |||
!6 | |||
!7 | |||
|- | |- | ||
!Period end date | |||
!31/03/2016 | |||
!31/03/2017 | |||
!31/03/2018<ref>https://find-and-update.company-information.service.gov.uk/company/09593533/filing-history/MzI0MjA3OTAwNmFkaXF6a2N4/document?format=pdf&download=0</ref> | |||
!31/03/2019<ref>https://find-and-update.company-information.service.gov.uk/company/09593533/filing-history/MzI2NDE3MDEyOGFkaXF6a2N4/document?format=pdf&download=0</ref> | |||
!31/03/2020<ref>https://find-and-update.company-information.service.gov.uk/company/09593533/filing-history/MzMyMDMyOTgxOWFkaXF6a2N4/document?format=pdf&download=0</ref> | |||
!31/03/2021<ref name=":19">https://find-and-update.company-information.service.gov.uk/company/09593533/filing-history/MzM2MTM2ODQzN2FkaXF6a2N4/document?format=pdf&download=0</ref> | |||
!31/03/2022<ref name=":19" /> | |||
|- | |- | ||
!Period duration (days) | |||
!366 | |||
!365 | |||
!365 | |||
!365 | |||
!366 | |||
!365 | |||
!365 | |||
|- | |- | ||
! | |||
!Historic | |||
!Historic | |||
!Historic | |||
!Historic | |||
!Historic | |||
!Historic | |||
!Historic | |||
|- | |- | ||
| | ! colspan="8" |Profit and loss | ||
|- | |- | ||
| | |Turnover | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
| | |||
|2,497,334 | |||
|3,891,612 | |||
|- | |- | ||
| | |Gross profit | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
| | |||
|1,791,902 | |||
|3,032,458 | |||
|- | |- | ||
| | |Operating profit/(loss) | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
| | |||
|(1,897,229) | |||
|(3,050,532) | |||
|- | |- | ||
| | |Interest receivable and similar income | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
| | |7 | ||
|0 | |||
|- | |- | ||
| | |Interest payable and similar expenses | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|(231,580) | |||
|(293,605) | |||
|- | |- | ||
| | |Net interest | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|(231,573) | |||
|(293,605) | |||
|- | |- | ||
| | |Profit Before Tax | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|(2,128,802) | |||
|(3,344,137) | |||
|- | |- | ||
| | |Tax on loss | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|350,000 | |||
|10,402 | |||
|- | |- | ||
| | |Profit for the period | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|(1,778,802) | |||
|(3,333,735) | |||
|- | |- | ||
| | ! colspan="8" |Balance sheet | ||
|- | |- | ||
| | | colspan="8" |'''Assets''' | ||
| | |||
|- | |- | ||
| | | colspan="8" |'''Non-current assets''' | ||
| | |||
|- | |- | ||
| | |Goodwill | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
| | | | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Other intangible assets | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
| | | | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Property, plant and equipment | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Deferred tax assets | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
| | |||
| | | | ||
| | | | ||
|- | |- | ||
| | | colspan="8" |'''Current assets''' | ||
| | |||
|- | |- | ||
| | |Investments | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Trade and other receivables | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
| | |||
| | |||
| | | | ||
|- | |- | ||
| | |Cash and cash equivalents (£'million) | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Current tax assets | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Total current assets | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |- | ||
| | | colspan="8" |'''Liabilities''' | ||
| | |- | ||
| | | colspan="8" |'''Non-current liabilities''' | ||
| | |- | ||
|Debt (£'million) | |||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | |||
| | |||
|- | |||
| colspan="8" |'''Current liabilities''' | |||
|- | |- | ||
| | |Trade and other payables | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |||
|Total current liabilities | |||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
Line 4,325: | Line 3,371: | ||
| | | | ||
|- | |- | ||
| | |Net assets | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |- | ||
! colspan=" | ! colspan="8" |Cash flow statement | ||
|- | |- | ||
| | |'''Net cash from/(used in) operating activities''' | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |- | ||
| colspan="8" |'''Investing activities''' | |||
|- | |- | ||
| | |Decrease in term deposits | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |||
|Purchase of property, plant and equipment | |||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
Line 4,399: | Line 3,411: | ||
| | | | ||
|- | |- | ||
| | |Purchase of intangible assets | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
Line 4,409: | Line 3,420: | ||
| | | | ||
|- | |- | ||
| | |Proceeds on disposal of subsidiary | ||
| | | | ||
| | | | ||
| | | | ||
Line 4,419: | Line 3,429: | ||
| | | | ||
|- | |- | ||
| | |Proceeds/(purchase) on disposal of investments | ||
| | |||
| | |||
| | | | ||
| | | | ||
Line 4,429: | Line 3,438: | ||
| | | | ||
|- | |- | ||
| | |'''Net cash from/(used in) investing activities''' | ||
| | | | ||
| | | | ||
| | | | ||
Line 4,439: | Line 3,447: | ||
| | | | ||
|- | |- | ||
| | | colspan="8" |'''Financing activities''' | ||
| | |- | ||
| | |Purchase of own shares in EBT | ||
| | |||
| | | | ||
| | | | ||
Line 4,449: | Line 3,458: | ||
| | | | ||
|- | |- | ||
| | |Proceeds on sale of own shares in EB | ||
| | | | ||
| | | | ||
| | | | ||
Line 4,458: | Line 3,466: | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Payment of principal in relation to lease liabilities | ||
| | |||
| | |||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Dividends paid to owners of the parent | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |'''Net cash from/(used in) financing activities''' | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |- | ||
| | ! colspan="8" |Revenue breakdown | ||
| | |- | ||
| colspan="8" |'''Ongoing revenue''' | |||
|- | |||
|Platform fees | |||
| | |||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Fund management fees | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Ongoing advice charges | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
Line 4,641: | Line 3,525: | ||
| | | | ||
|- | |- | ||
| | |Interest earned on client money | ||
| | |||
| | |||
| | |||
| | | | ||
| | | | ||
Line 4,647: | Line 3,534: | ||
| | | | ||
|- | |- | ||
| | |Renewal commission | ||
| | |||
| | |||
| | |||
| | | | ||
| | | | ||
Line 4,653: | Line 3,543: | ||
| | | | ||
|- | |- | ||
| | | colspan="8" |'''Transactional revenue''' | ||
|- | |||
|Fees on stockbroking transactions | |||
| | |||
| | |||
| | |||
| | | | ||
| | | | ||
Line 4,659: | Line 3,554: | ||
| | | | ||
|- | |- | ||
| | |Initial advice charges | ||
| | |||
| | |||
| | |||
| | | | ||
| | | | ||
Line 4,665: | Line 3,563: | ||
| | | | ||
|- | |- | ||
| | |Other transactional income | ||
| | |||
| | |||
| | |||
| | | | ||
| | | | ||
Line 4,671: | Line 3,572: | ||
| | | | ||
|- | |- | ||
| | ! colspan="8" |Operating costs | ||
|- | |||
|Depreciation of owned plant and equipment and right-of-use assets | |||
| | |||
| | |||
| | |||
| | | | ||
| | | | ||
Line 4,677: | Line 3,583: | ||
| | | | ||
|- | |- | ||
| | |Amortisation of other intangible assets | ||
| | |||
| | |||
| | |||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Impairment of intangible assets | ||
| | | | ||
| | |||
| | |||
| | |||
| | |||
| | | | ||
| | | | ||
|- | |- | ||
| | |Marketing costs | ||
| | | | ||
| | |||
| | |||
| | |||
| | |||
| | | | ||
| | | | ||
|- | |- | ||
| | |Operating lease rentals payable – property | ||
| | | | ||
| | |||
| | |||
| | |||
| | |||
| | | | ||
| | | | ||
|- | |- | ||
| | |Office running costs – excluding operating lease rents payable | ||
| | | | ||
| | |||
| | |||
| | |||
| | |||
| | | | ||
| | | | ||
|- | |- | ||
| | |FSCS costs | ||
| | | | ||
| | |||
| | |||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Dealing and financial services costs | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |||
|Data and technology costs | |||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
Line 4,794: | Line 3,654: | ||
| | | | ||
| | | | ||
|- | |||
|Legal and professional costs | |||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
Line 4,803: | Line 3,663: | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Other operating costs | ||
| | |||
| | |||
| | | | ||
| | | | ||
Line 4,812: | Line 3,672: | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Staff (including contractors) costs | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Total | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
Line 4,848: | Line 3,690: | ||
| | | | ||
| | | | ||
|- | |- | ||
| | ! colspan="8" |Metrics | ||
|- | |- | ||
| | |Cost of goods sold as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
Line 4,866: | Line 3,699: | ||
| | | | ||
| | | | ||
| | |28.25% | ||
| | |22.08% | ||
|- | |- | ||
| | |Operating expenses as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
Line 4,875: | Line 3,708: | ||
| | | | ||
| | | | ||
| | |(75.97)% | ||
| | |(78.39)% | ||
|- | |- | ||
| | |Tax rate (%) | ||
| | | | ||
| | | | ||
Line 4,884: | Line 3,717: | ||
| | | | ||
| | | | ||
|( | |(14.01)% | ||
|( | |(0.27)% | ||
|- | |- | ||
| | |Depreciation and amortisation rate (%) | ||
| | | | ||
| | | | ||
Line 4,896: | Line 3,729: | ||
| | | | ||
|- | |- | ||
| | |Fixed Capital Investment (FCInv) as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
Line 4,902: | Line 3,735: | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |||
|Working Capital Investment (WCInv) as a proportion of revenue (%) | |||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Net borrowing as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
Line 4,932: | Line 3,756: | ||
| | | | ||
|- | |- | ||
| | |Interest expense as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
Line 4,938: | Line 3,762: | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | |} | ||
| | {| class="wikitable" | ||
| | |+AJ Bell Plc | ||
! | |||
!30/09/2018 | |||
!30/09/2019 | |||
!30/09/2020 | |||
!30/09/2021 | |||
!30/09/2022 | |||
!30/09/2023 | |||
!30/09/2024 | |||
|- | |- | ||
! | ! | ||
!Historic | |||
!Historic | |||
!Historic | |||
!Historic | |||
!Historic | |||
!Forecast | |||
!Forecast | |||
|- | |- | ||
! colspan="8" |Profit and loss | |||
|- | |- | ||
| | |Revenue (£'000) | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
Line 4,962: | Line 3,795: | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Administrative expenses | ||
| | | | ||
| | | | ||
Line 4,971: | Line 3,802: | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |||
|Operating profit | |||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |||
|Investment income | |||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
Line 5,000: | Line 3,822: | ||
| | | | ||
| | | | ||
|- | |- | ||
|Finance costs | |||
| | |||
| | | | ||
| | | | ||
Line 5,009: | Line 3,831: | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Profit before tax | ||
| | | | ||
| | | | ||
Line 5,020: | Line 3,838: | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |||
|Tax expense | |||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |- | ||
| colspan="8" |''' | | colspan="8" |'''Profit for the financial year attributable to:''' | ||
|- | |- | ||
| | |Equity holders of the Parent Company | ||
| | |||
| | |||
| | | | ||
| | | | ||
Line 5,049: | Line 3,860: | ||
| | | | ||
| | | | ||
|- | |- | ||
| | | colspan="8" |'''Earnings per share:''' | ||
|- | |||
|Basic (pence) | |||
| | | | ||
| | | | ||
Line 5,061: | Line 3,872: | ||
| | | | ||
|- | |- | ||
| | |Diluted (pence) | ||
| | | | ||
| | | | ||
Line 5,067: | Line 3,878: | ||
| | | | ||
| | | | ||
|''' | | | ||
|''' | | | ||
|- | |||
! colspan="8" |Balance sheet | |||
|- | |||
| colspan="8" |'''Assets''' | |||
|- | |||
| colspan="8" |'''Non-current assets''' | |||
|- | |- | ||
| | |Goodwill | ||
| | | | ||
| | | | ||
Line 5,079: | Line 3,896: | ||
| | | | ||
|- | |- | ||
| | |Other intangible assets | ||
| | |||
| | |||
| | | | ||
| | | | ||
Line 5,085: | Line 3,904: | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Property, plant and equipment | ||
| | |||
| | |||
| | | | ||
| | | | ||
Line 5,094: | Line 3,913: | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Right-of-use assets | ||
| | |||
| | |||
| | | | ||
| | | | ||
Line 5,103: | Line 3,922: | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Deferred tax asset | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
Line 5,130: | Line 3,940: | ||
| | | | ||
| | | | ||
|- | |- | ||
| colspan="8" |'''Current assets''' | |||
|- | |- | ||
| | |Trade and other receivables | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |||
|Current tax receivable | |||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
Line 5,161: | Line 3,960: | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Cash and cash equivalents (£'000) | ||
| | | | ||
| | | | ||
Line 5,170: | Line 3,967: | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
Line 5,188: | Line 3,978: | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Total assets | ||
| | | | ||
| | | | ||
Line 5,197: | Line 3,985: | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |||
| colspan="8" |'''Liabilities''' | |||
|- | |- | ||
| colspan="8" |''' | | colspan="8" |'''Current liabilities''' | ||
|- | |- | ||
| | |Trade and other payables | ||
| | | | ||
| | | | ||
Line 5,208: | Line 3,998: | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |||
|Lease liabilities | |||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Provisions | ||
| | | | ||
| | | | ||
Line 5,235: | Line 4,016: | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
Line 5,255: | Line 4,027: | ||
| | | | ||
| | | | ||
|- | |- | ||
| | | colspan="8" |'''Non-current liabilities''' | ||
|- | |||
|Lease liabilities | |||
| | |||
| | | | ||
| | | | ||
Line 5,265: | Line 4,038: | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Provisions | ||
| | |||
| | | | ||
| | | | ||
Line 5,274: | Line 4,047: | ||
| | | | ||
| | | | ||
|- | |- | ||
| | | | ||
| | | | ||
Line 5,282: | Line 4,053: | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |||
|Total liabilities | |||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
Line 5,300: | Line 4,065: | ||
| | | | ||
| | | | ||
|- | |||
|Net assets | |||
| | | | ||
| | | | ||
| | | | ||
Line 5,310: | Line 4,074: | ||
| | | | ||
| | | | ||
|- | |- | ||
| | | colspan="8" |'''Equity''' | ||
|- | |||
|Share capital | |||
| | |||
| | | | ||
| | | | ||
Line 5,319: | Line 4,085: | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Share premium | ||
| | |||
| | | | ||
| | | | ||
Line 5,328: | Line 4,094: | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Own shares | ||
| | |||
| | | | ||
| | | | ||
Line 5,337: | Line 4,103: | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Retained earnings | ||
| | |||
| | | | ||
| | | | ||
Line 5,346: | Line 4,112: | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Total equity | ||
| | | | ||
| | | | ||
Line 5,354: | Line 4,119: | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |- | ||
| | ! colspan="8" |Cash flow statement | ||
|- | |||
| colspan="8" |'''Cash flows from operating activities''' | |||
|- | |||
|Profit for the financial year | |||
| | |||
| | | | ||
| | | | ||
Line 5,364: | Line 4,134: | ||
| | | | ||
| | | | ||
|- | |- | ||
| colspan="8" |Adjustments for: | |||
|- | |- | ||
| | |Investment income | ||
| | | | ||
| | | | ||
Line 5,374: | Line 4,143: | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |||
|Finance costs | |||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |||
|Income tax expense | |||
| | | | ||
| | | | ||
| | | | ||
Line 5,402: | Line 4,163: | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Depreciation and amortisation | ||
| | |||
| | | | ||
| | | | ||
Line 5,411: | Line 4,172: | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Share-based payment expense | ||
| | |||
| | | | ||
| | | | ||
Line 5,420: | Line 4,181: | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Decrease in provisions and other payables | ||
| | |||
| | | | ||
| | | | ||
Line 5,429: | Line 4,190: | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Loss on disposal of property, plant and equipment | ||
| | |||
| | |||
| | | | ||
| | | | ||
Line 5,437: | Line 4,199: | ||
| | | | ||
| | | | ||
|- | |- | ||
|Profit on disposal of right-of-use assets | |||
|- | |||
| | | | ||
| | | | ||
Line 5,471: | Line 4,209: | ||
| | | | ||
|- | |- | ||
| | |Increase in trade and other receivables | ||
| | |||
| | |||
| | |||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Increase / (decrease) in trade and other payables | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Cash generated from operations | ||
| | | | ||
| | | | ||
Line 5,507: | Line 4,236: | ||
| | | | ||
|- | |- | ||
| | |Income tax paid | ||
| | |||
| | |||
| | |||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Interest expense paid | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Net cash from/(used in) operating activities | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |- | ||
| | | colspan="8" |'''Cash flows from investing activities''' | ||
|- | |||
|Purchase of other intangible assets | |||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Purchase of property, plant and equipment | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Acquisition of subsidiary, net of cash acquired | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Interest received | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Net cash from/(used in) investing activities | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |- | ||
| colspan="8" |'''Cash flows from financing activities''' | |||
|- | |- | ||
| | |Payments of principal in relation to lease liabilities | ||
| | | | ||
| | | | ||
Line 5,653: | Line 4,321: | ||
| | | | ||
|- | |- | ||
| | |Payments of interest on lease liabilities | ||
| | | | ||
| | | | ||
Line 5,662: | Line 4,330: | ||
| | | | ||
|- | |- | ||
| | |Proceeds from issue of share capital | ||
| | |||
| | |||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Dividends paid | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |||
|Net cash from/(used in) financing activities | |||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |- | ||
| | ! colspan="8" |Metrics | ||
|- | |||
|Cost of goods sold as a proportion of revenue (%) | |||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |||
|Operating expenses as a proportion of revenue (%) | |||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Tax rate (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |||
|Depreciation and amortisation rate (%) | |||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | |- | ||
| | |Fixed Capital Investment (FCInv) as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|- | |- | ||
| | |Working Capital Investment (WCInv) as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
Line 5,788: | Line 4,413: | ||
| | | | ||
|- | |- | ||
| | |Net borrowing as a proportion of revenue (%) | ||
| | | | ||
| | | | ||
Line 5,797: | Line 4,422: | ||
| | | | ||
|- | |- | ||
|Interest expense as a proportion of revenue (%) | |||
|Interest expense | |||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
|} | |} | ||
{| class="wikitable" | {| class="wikitable" | ||
|+ | |+Trading 212 Group Limited | ||
!Year | !Year | ||
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!2 | !2 | ||
!3 | !3 | ||
Line 6,485: | Line 4,440: | ||
!5 | !5 | ||
!6 | !6 | ||
!7 | !7<ref>https://s3.eu-west-2.amazonaws.com/document-api-images-live.ch.gov.uk/docs/TSm136YZkgOVAft-B377F-NKlBy9iC-6ZBi-J0I__mk/application-pdf?X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Credential=ASIAWRGBDBV3KS3H3G5V%2F20230606%2Feu-west-2%2Fs3%2Faws4_request&X-Amz-Date=20230606T211732Z&X-Amz-Expires=60&X-Amz-Security-Token=IQoJb3JpZ2luX2VjEAMaCWV1LXdlc3QtMiJIMEYCIQC660r%2Bjx4D8MAt7dZnQyI4rQKB%2ByjmjuPvdqPe%2FzG5gwIhAMWx9BAf15tgFNPWA30ZMAQoITU1FekaZU4DdaDpbqpBKroFCEwQBBoMNDQ5MjI5MDMyODIyIgxTLwy1663v14A2ya4qlwW716KZyuhql1qyYzIKJqYYB3LoPM5dO6SP%2BGh1aYozdNJq7ZXCxOATczExlzncRJDmLWz0z1CurY9ZplLg4eiabGEMU0sZQshK4gKgagQ1A4rNWijM5fefc0CIoE%2FanqRcqu95iDs%2FiQofP48NNSqCxwcNUcBk1sSojK4RPJIlJxb5AeU2khPA1ldd80lrLdDrLswPOtjjyzLenNFGf5q2ArWweQL%2FzvPIg%2FelxdUzd91W1PLmU%2BBXfDEw%2BXdnD25AB2%2BLhij7Ueg8hc9hl0wSikQ6%2BLXpQyJBlgy0sURS0k2FSsEDv35cmdHX%2BTG0jUMQvdeKRy7FhHZhp%2BkcAnTMXoD5Q8flHUeigOAM1H4Upeukj%2FQvHxeIJwJECydGsGxed8x8uzREXYJPoijgRJjaXIMQXPY%2FwZ%2F0uK0iZnNwLPdQ3iUfwFFr5Z8LJB22iJA0WQOGVXtrWOPm2ePOkVz7kYYVYYFWaUKsFJXoTz1ddQ6yxrlXJELpXwOqClKe%2B2jXqA%2FPPjGqJzhxN08oKsE4R1tI%2F5XO8CkkVt1j9dzkcg3j46oz%2Frah5op4BvY%2BZ5SwJKe1k7IAjzerriBgvb0nevlWE%2B2M7P6wX0xqaFh28yzraDWif0VYhqwWbxm4Fa1QooHBTDLNSHcUKAPrWMfa8dA3OKIgOqybGtrBu%2FGIcsBkEXOajDjVE5OlmQakV%2Brz8XRPYEbzMMNuSawNwrv8NW3Mm7mb8y%2Bivq72a4YuaqwRhPPXv7ZJMPBs48hgjH8lRNMqmyK6FLaEIDyFLAGiRpXCTsaRyDqA7ydsGd4sdEUKzlAwpXzKH3ZrR%2B8webQv4S4Mo7lY9XmLXF1a4UEjiX6MNYLQfhpEs6WfAIL%2B6CiR7U1PfuQwiIf%2BowY6sAHe%2B%2FOG%2FE7AbAx8JhLgEhcGzWkFdOHiC0G5h%2Brx6a7s%2BKDx6Y2uB%2FH8Iz2BvGmuyJywGfydIu%2BpuBpyXDJIiSHEaPXgdem9Vr1qfWp4DgAKBDqbXXynyVzhBfIcTshNhDAV%2FeCRyk1sMW8wOGvkXh09tP6hekKWL84gHFuzpO5P2TD5ssECMlD2mzAKzgG%2FJ4m6s1vPE6uS%2F7zLhcjceOfFo1CH2Vzib3s5ZkCMSQo%2Bbg%3D%3D&X-Amz-SignedHeaders=host&response-content-disposition=inline%3Bfilename%3D%22companies_house_document.pdf%22&X-Amz-Signature=d6d6e64d192d38e0d55e9784f1eeaea2fc9d75fc7a93e9c93081aa1ac5c5bc57</ref> | ||
|- | |- | ||
!Year end date | !Year end date | ||
Line 7,177: | Line 5,132: | ||
|} | |} | ||
{| class="wikitable" | {| class="wikitable" | ||
|+ | |+Robinhood Markets, Inc. | ||
! | ! | ||
!31/12/2018 | !31/12/2018 | ||
Line 7,385: | Line 5,340: | ||
| | | | ||
|- | |- | ||
|Receivables from brokers, dealers, and clearing | |Receivables from brokers, dealers, and clearing organizations | ||
| | | | ||
| | | | ||
Line 7,406: | Line 5,361: | ||
| | | | ||
|- | |- | ||
|Deposits with clearing | |Deposits with clearing organizations | ||
| | | | ||
| | | | ||
Line 7,609: | Line 5,564: | ||
| colspan="6" |Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | | colspan="6" |Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
|- | |- | ||
|Depreciation and | |Depreciation and amortization | ||
| | | | ||
| | | | ||
Line 7,632: | Line 5,587: | ||
| | | | ||
|- | |- | ||
| | |Capitalization of internally developed software | ||
| | | | ||
| | | | ||
Line 7,878: | Line 5,833: | ||
|340 | |340 | ||
|- | |- | ||
| | |Amortization | ||
| | | | ||
| | | | ||
Line 8,245: | Line 6,200: | ||
| | | | ||
|- | |- | ||
|Preferred shares: | |Preferred shares: authorized unlimited number of non-voting, cumulative, redeemable and retractable | ||
| | | | ||
| | | | ||
Line 8,252: | Line 6,207: | ||
|0 | |0 | ||
|- | |- | ||
|Common shares: | |Common shares: authorized unlimited number of non-voting, redeemable, retractable Class A common shares and unlimited number of voting common shares | ||
| | | | ||
| | | | ||
Line 8,319: | Line 6,274: | ||
| | | | ||
|- | |- | ||
| | |Amortization | ||
| | | | ||
| | | | ||
Line 8,716: | Line 6,671: | ||
|- | |- | ||
|Beta | |Beta | ||
| | |7.0 | ||
|Here, to estimate the adjusted beta, we used the iShares MSCI World ETF to represent the market portfolio; and in terms of the time period and frequency of observations, we used five years of monthly data (i.e. 60 observations in total), which is supported by a study and is the most common choice. The beta value in a future period has been found to be on average closer to the mean value of 1.0, and because valuation is forward-looking, it is logical to adjust the raw beta so it more accurately predicts a future beta. | |Here, to estimate the adjusted beta, we used the iShares MSCI World ETF to represent the market portfolio; and in terms of the time period and frequency of observations, we used five years of monthly data (i.e. 60 observations in total), which is supported by a study and is the most common choice. The beta value in a future period has been found to be on average closer to the mean value of 1.0, and because valuation is forward-looking, it is logical to adjust the raw beta so it more accurately predicts a future beta. | ||
|- | |- | ||
Line 8,724: | Line 6,679: | ||
|- | |- | ||
|Cost of equity (%) | |Cost of equity (%) | ||
|54. | |54.971% | ||
|Cost of equity = Risk-free rate + Beta x Equity risk premium. | |Cost of equity = Risk-free rate + Beta x Equity risk premium. | ||
|} | |} | ||
{| class="wikitable" | {| class="wikitable" | ||
|+Assessment scheme to adjust the basic beta coefficient | |+Assessment scheme of one of the start-ups to adjust the basic beta coefficient<ref>https://ijb.cyut.edu.tw/var/file/10/1010/img/859/V183-3.pdf</ref> | ||
! rowspan="2" |Category | ! rowspan="2" |'''Category''' | ||
! rowspan="2" |Subcategory | ! rowspan="2" |'''Subcategory''' | ||
! colspan="5" |'''Adjustment of the beta coefficient''' | ! colspan="5" |'''Adjustment of the beta coefficient''' | ||
! rowspan="2" |'''Result''' | ! rowspan="2" |'''Result''' | ||
Line 8,743: | Line 6,696: | ||
|- | |- | ||
! rowspan="4" | | ! rowspan="4" | | ||
Technology | '''Technology''' | ||
!Maturity of technology | !Maturity of technology | ||
|Technology still in initial experimental phase | |Technology still in initial experimental phase | ||
Line 8,768: | Line 6,721: | ||
|Good reputation | |Good reputation | ||
|Very good reputation | |Very good reputation | ||
|'''+0 | |'''+1.0''' | ||
|- | |- | ||
!Patent protection | !Patent protection | ||
Line 8,780: | Line 6,733: | ||
|- | |- | ||
! rowspan="4" | | ! rowspan="4" | | ||
Products | '''Products''' | ||
!Product benefits | !Product benefits | ||
|Product benefits not identifiable | |Product benefits not identifiable | ||
Line 8,818: | Line 6,771: | ||
|- | |- | ||
! rowspan="4" | | ! rowspan="4" | | ||
Implementation | '''Implementation''' | ||
!Business plan | !Business plan | ||
|Business plan unjustifiable | |Business plan unjustifiable | ||
Line 8,826: | Line 6,779: | ||
|Business plan frequently proven | |Business plan frequently proven | ||
| | | | ||
'''0. | '''+0.5''' | ||
|- | |- | ||
!Technical development plan | !Technical development plan | ||
Line 8,835: | Line 6,788: | ||
|Technical development plan very likely to be feasible | |Technical development plan very likely to be feasible | ||
| | | | ||
'''0. | '''+0.5''' | ||
|- | |- | ||
!Marketing plan | !Marketing plan | ||
Line 8,844: | Line 6,797: | ||
|Marketing plan very likely to be feasible | |Marketing plan very likely to be feasible | ||
| | | | ||
'''0. | '''+0.5''' | ||
|- | |- | ||
!Business development plan | !Business development plan | ||
Line 8,853: | Line 6,806: | ||
|Business development plan very likely to be feasible | |Business development plan very likely to be feasible | ||
| | | | ||
'''0. | '''+0.5''' | ||
|- | |- | ||
! rowspan="4" | | ! rowspan="4" | | ||
Organisation' | ''Organisation''' | ||
!Competences of the management team | !Competences of the management team | ||
|Management team with major flaws | |Management team with major flaws | ||
Line 8,893: | Line 6,846: | ||
|- | |- | ||
! rowspan="4" | | ! rowspan="4" | | ||
Finances | '''Finances''' | ||
!Sales plan | !Sales plan | ||
|Sales plan unjustifiable | |Sales plan unjustifiable | ||
Line 8,901: | Line 6,854: | ||
|Sales plan very conservative | |Sales plan very conservative | ||
| | | | ||
'''0. | '''+0.5''' | ||
|- | |- | ||
!Costs plan | !Costs plan | ||
Line 8,910: | Line 6,863: | ||
|Costs plan very conservative | |Costs plan very conservative | ||
| | | | ||
'''0. | '''+0.5''' | ||
|- | |- | ||
!Profitability | !Profitability | ||
Line 8,930: | Line 6,883: | ||
'''0.0''' | '''0.0''' | ||
|- | |- | ||
| colspan="7" | | | colspan="7" |Total | ||
|''' | |'''7.0''' | ||
|} | |} | ||
== References and notes == | == References and notes == | ||
<references /> | <references /> |