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== 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 Freetrade using the relative valuation approach? ==== Stockhub estimates that the expected return of an investment in Freetrade 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 Freetrade 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 with sales forecast to grow exponential over the five year forecast period, it's best to use forward-looking data, rather than historic data. In regards to the growth-adjusted EV/sales multiple, for the sales figure, Stockhub suggests that in order to account for the forecasted exponential growth of the business, it's best to use one at the end of the forecast period (i.e. Year 5). |- |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, Freetrade 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? |£225 million |As at 13th June 2023, the current value of its company at £225 million.<ref name=":9">https://www.telegraph.co.uk/business/2023/06/13/freetrade-stock-trading-start-up-valuation-plunge/</ref> |- |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. |} ==== Sensitivity analysis ==== The main inputs that result in the greatest change in the expected return of the Freetrade investment are, in order of importance (from highest to lowest): #The growth-adjusted EV/sales multiple (the default multiple 0.19); #Freetrade Year 5 sales figure (the default figure is £777 million); and #Freetrade 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 Freetrade investment is shown in the table below. {| class="wikitable sortable" |+Freetrade investment expected return sensitivity analysis !Main input !50% worse !Unchanged !50% better |- |The growth-adjusted EV/sales multiple |1972% |4044% |6116% |- |Freetrade Year 5 sales figure |1972% |4044% |6116% |- |Freetrade Year 6 sales growth rate |1972% |4044% |6116% |} === Freetrade peer(s) === {| class="wikitable" |+ ! !Freetrade !Trading 212 !Robinhood !Hargreaves Lansdown !AJ Bell !Avanza Bank Holding AB !The Charles Schwab Corporation !Average (median) |- ! colspan="6" |Relative valuation data ! ! ! |- |Local currency |GBP |EUR |USD |GBP |GBP |SEK |USD |N/A |- |Current market capitalisation (local currency, million) |658 |N/A |8,500 |4,080 |1,300 |34,690 |100,102 |N/A |- |Year ago sales |16 | |1,360 |583 |164 |2,970 |20,760 |N/A |- |Current sales |37 |N/A |1,860 |709 |212 |3,540 |19,570 |N/A |- |Sales growth rate (%) |135 |N/A |37 |22 |30 |19 |(5.70) |N/A |- |Current cash |23 | |10,520 |446 |100 |9,050 |81,300 |N/A |- |Current debt |32<ref>https://www.crowdcube.com/companies/freetrade/pitches/qQNNal</ref> | |2,750 |15 |13 |83 |76,850 |N/A |- ! colspan="6" |Relative valuation metrics ! ! ! |- |Enterprise value/sales |41.69 |N/A |0.39 |5.15 |5.72 |7.27 |4.89 |'''5.15''' |- |Growth-adjusted enterprise value/sales ratio |0.31 |N/A |0.01 |0.23 |0.19 |0.38 |(0.85) |'''0.19''' |- ! colspan="6" |Absolute valuation data ! ! ! |- |Lifecycle growth stage |Stage 1 (of 4) |Stage 2 (of 4) |Stage 1 (of 4) |Between stage 2 and 3 (of 4) |Stage 3 (of 4) |Stage 3 (of 4) |Between stage 2 and 3 (of 4) |N/A |- |Cost of goods sold as a proportion of revenue (%) |12.92% |N/A |N/A |N/A |N/A | | | |- |Operating expenses as a proportion of revenue (%) |230.83% |41.11% |174.45% |46.31% |64.00% | | | |- |Tax rate (%) |(6.23)% |15.23% |0.10% |19.84% |19.98% | | | |- |Depreciation and amortisation rate (%) |76.85% |79.52% |35.67% |22.91% |14.94% | | | |- |Fixed Capital Investment (FCInv) as a proportion of revenue (%) |15.12% |1.13% |2.06% |2.35% |2.06% | | | |- |Working Capital Investment (WCInv) as a proportion of revenue (%) |121.88% |52.01% |(20.03)% |(3.09)% |0.18% | | | |- |Net borrowing as a proportion of revenue (%) |43.49% |0.27% |0% | -0.67% | -1.52% | | | |- |Interest expense as a proportion of revenue (%) |0.12% |0.41% |0% |0.14% |0.48% | | | |} {| 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 (%) |12.92% |0.00% |0.00% |36.13% |- |Operating expenses as a proportion of revenue (%) |202.64% |41.11% |55.16% |174.39% |- |Tax rate (%) |(3.07)% |15.23% |19.91% |(1.94)% |- |Depreciation and amortisation rate (%) |56.26% |79.52% |18.93% |47.29% |- |Fixed Capital Investment (FCInv) as a proportion of revenue (%) |8.59% |1.13% |2.21% |6.25% |- |Working Capital Investment (WCInv) as a proportion of revenue (%) |50.93% |52.01% |(1.46)% |2.13% |- |Net borrowing as a proportion of revenue (%) |21.75% |0.27% |(1.10)% |0% |- |Interest expense as a proportion of revenue (%) |0.06% |0.41% |0.31% |0% |} {| class="wikitable" |+Stage 1 ! !Freetrade !Robinhood ! !Median |- |Cost of goods sold as a proportion of revenue (%) |12.92% |N/A | |12.92% |- |Operating expenses as a proportion of revenue (%) |230.83% |174.45% | |202.64% |- |Tax rate (%) |(6.23)% |0.10% | |(3.07)% |- |Depreciation and amortisation rate (%) |76.85% |35.67% | |56.26% |- |Fixed Capital Investment (FCInv) as a proportion of revenue (%) |15.12% |2.06% | |8.59% |- |Working Capital Investment (WCInv) as a proportion of revenue (%) |121.88% |(20.03)% | |50.93% |- |Net borrowing as a proportion of revenue (%) |43.49% |0% | |21.75% |- |Interest expense as a proportion of revenue (%) |0.12% |0% | |0.06% |} {| class="wikitable" |+Stage 2 ! !Trading 212 ! ! !Median |- |Cost of goods sold as a proportion of revenue (%) |N/A | | |0.00% |- |Operating expenses as a proportion of revenue (%) |41.11% | | |41.11% |- |Tax rate (%) |15.23% | | |15.23% |- |Depreciation and amortisation rate (%) |79.52% | | |79.52% |- |Fixed Capital Investment (FCInv) as a proportion of revenue (%) |1.13% | | |1.13% |- |Working Capital Investment (WCInv) as a proportion of revenue (%) |52.01% | | |52.01% |- |Net borrowing as a proportion of revenue (%) |0.27% | | |0.27% |- |Interest expense as a proportion of revenue (%) |0.41% | | |0.41% |} {| class="wikitable" |+Stage 3 ! !AJ Bell !Hargreaves Lansdown ! !Median |- |Cost of goods sold as a proportion of revenue (%) |N/A |N/A | |0.00% |- |Operating expenses as a proportion of revenue (%) |64.00% |46.31% | |55.16% |- |Tax rate (%) |19.98% |19.84% | |19.91% |- |Depreciation and amortisation rate (%) |14.94% |22.91% | |18.93% |- |Fixed Capital Investment (FCInv) as a proportion of revenue (%) |2.06% |2.35% | |2.21% |- |Working Capital Investment (WCInv) as a proportion of revenue (%) |0.18% |(3.09)% | |(1.46)% |- |Net borrowing as a proportion of revenue (%) | -1.52% | -0.67% | |(1.10)% |- |Interest expense as a proportion of revenue (%) |0.48% |0.14% | |0.31% |} {| class="wikitable" |+Stage 4 ! !Blackberry ! ! !Median |- |Cost of goods sold as a proportion of revenue (%) |36.13% | | |36.13% |- |Operating expenses as a proportion of revenue (%) |174.39% | | |174.39% |- |Tax rate (%) |(1.94)% | | |(1.94)% |- |Depreciation and amortisation rate (%) |47.29% | | |47.29% |- |Fixed Capital Investment (FCInv) as a proportion of revenue (%) |6.25% | | |6.25% |- |Working Capital Investment (WCInv) as a proportion of revenue (%) |2.13% | | |2.13% |- |Net borrowing as a proportion of revenue (%) |0% | | |0% |- |Interest expense as a proportion of revenue (%) |0% | | |0% |} {| class="wikitable" |+Hargreaves Lansdown ! !30/06/2018 !30/06/2019 !30/06/2020 !30/06/2021 !30/06/2022 |- ! !Historic !Historic !Historic !Historic !Historic |- ! colspan="6" |Profit and loss |- |Revenue (£'million) |447.50 |480.50 |550.90 |631.00 |583.00 |- |Gross profit | | | |N/A |N/A |- |Operating profit/(loss) |291.10 |303.30 |337.70 |365.60 |270.00 |- |Net interest |1.30 |2.50 |1.80 |0.40 |(0.80) |- |Profit Before Tax |292.40 |305.80 |378.30 |366.00 |269.20 |- |Profit for the period |236.70 |247.60 |313.20 |296.30 |215.80 |- ! colspan="6" |Balance sheet |- | colspan="6" |'''Assets''' |- | colspan="6" |'''Non-current assets''' |- |Goodwill | | | |1.3 |1.3 |- |Other intangible assets | | | |33.6 |37.3 |- |Property, plant and equipment | | | |22.5 |28.6 |- |Deferred tax assets | | | |3.7 |1.9 |- | colspan="6" |'''Current assets''' |- |Investments | | | |0.9 |0.8 |- |Trade and other receivables | | | |869.2 |523.5 |- |Cash and cash equivalents (£'million) |125.30 |179.30 |235.90 |445.3 |488.3 |- |Current tax assets | | | |1.5 |0.6 |- |Total current assets | | | |1,316.9 |1,013.2 |- | colspan="6" |'''Liabilities''' |- | colspan="6" |'''Non-current liabilities''' |- |Debt (£'million) |0 |0 |19.90 |15.00 |11.80 |- | colspan="6" |'''Current liabilities''' |- |Trade and other payables | | | |774.0 |488.3 |- |Total current liabilities | | | |774.0 |488.3 |- |Net assets |405.20 |459.30 |557.60 |592.40 |573.50 |- ! colspan="6" |Cash flow statement |- |'''Net cash from/(used in) operating activities''' | | |'''265.4''' |'''328.6''' |'''262.9''' |- | colspan="6" |'''Investing activities''' |- |Decrease in term deposits | | | |170.0 |40.0 |- |Purchase of property, plant and equipment | | | |(5.4) |(2.8) |- |Purchase of intangible assets | | | |(12.8) |(10.9) |- |Proceeds on disposal of subsidiary | | | |0.2 |0.0 |- |Proceeds/(purchase) on disposal of investments | | | |(0.3) |0.1 |- |'''Net cash from/(used in) investing activities''' | | |'''7.8''' |'''151.7''' |'''26.4''' |- | colspan="6" |'''Financing activities''' |- |Purchase of own shares in EBT | | | |(7 .7) |(4.2) |- |Proceeds on sale of own shares in EB | | | |4.3 |2.8 |- |Payment of principal in relation to lease liabilities | | | |(4.0) |(3.9) |- |Dividends paid to owners of the parent | | | |(263.5) |(241 .0) |- |'''Net cash from/(used in) financing activities''' | | |'''(216.6)''' |'''(270.9)''' |'''(246.3)''' |- ! colspan="6" |Revenue breakdown |- | colspan="6" |'''Ongoing revenue''' |- |Platform fees | | | |263.7 |289.1 |- |Fund management fees | | | |60.8 |60.3 |- |Ongoing advice charges | | | |9.0 |8.3 |- |Interest earned on client money | | | |51.9 |51.8 |- |Renewal commission | | | |5.1 |4.6 |- | colspan="6" |'''Transactional revenue''' |- |Fees on stockbroking transactions | | | |231.6 |164.6 |- |Initial advice charges | | | |5.1 |4.0 |- |Other transactional income | | | |3.8 |0.3 |- ! colspan="6" |Operating costs |- |Depreciation of owned plant and equipment and right-of-use assets | | | |9.0 |8.9 |- |Amortisation of other intangible assets | | | |6.1 |6.2 |- |Impairment of intangible assets | | | |1.1 |1.0 |- |Marketing costs | | | |28.3 |25.8 |- |Operating lease rentals payable – property | | | | | |- |Office running costs – excluding operating lease rents payable | | | | | |- |FSCS costs | | | | | |- |Dealing and financial services costs | | | | | |- |Data and technology costs | | | | | |- |Legal and professional costs | | | | | |- |Other operating costs | | | | | |- |Staff (including contractors) costs | | | | | |- |Total | | | |266.0 |313.0 |- ! colspan="6" |Metrics |- |Cost of goods sold as a proportion of revenue (%) | | | |N/A |N/A |- |Operating expenses as a proportion of revenue (%) |65.05 |63.12 |61.30 |57.94 |46.31 |- |Tax rate (%) |19.05 |19.03 |17.21 |19.04 |19.84 |- |Depreciation and amortisation rate (%) | | | |26.92 |22.91 |- |Fixed Capital Investment (FCInv) as a proportion of revenue (%) | | | |2.88 |2.35 |- |Working Capital Investment (WCInv) as a proportion of revenue (%) | | | | |(3.09) |- |Net borrowing as a proportion of revenue (%) | | | | -0.62% | -0.67% |- |Interest expense as a proportion of revenue (%) | | | |0.16% |0.14% |} {| 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="6" |Profit and loss ! ! |- |Revenue (£'000) | | |126,749 |145,826 |163,847 |212,100 |240,900 |- |Administrative expenses | | | |(89,975) |(104,866) | | |- |Operating profit | | | |55,851 |58,981 | | |- |Investment income | | | |23 |198 | | |- |Finance costs | | | |(790) |(768) | | |- |Profit before tax | | | |55,084 |58,411 |79,800 |92,600 |- |Tax expense | | | |(11,262) |(11,672) | | |- | colspan="8" |'''Profit for the financial year attributable to:''' |- |Equity holders of the Parent Company | | | |43,822 |46,739 | | |- | colspan="8" |'''Earnings per share:''' |- |Basic (pence) | | | |10.71 |11.39 | | |- |Diluted (pence) | | | |10.67 |11.35 | | |- ! colspan="6" |Balance sheet ! ! |- | colspan="8" |'''Assets''' |- | colspan="8" |'''Non-current assets''' |- |Goodwill | | | |6,991 |6,991 | | |- |Other intangible assets | | | |6,014 |8,779 | | |- |Property, plant and equipment | | | |3,351 |3,325 | | |- |Right-of-use assets | | | |13,325 |12,273 | | |- |Deferred tax asset | | | |940 |610 | | |- | | | | |30,621 |31,978 | | |- | colspan="8" |'''Current assets''' |- |Trade and other receivables | | | |37,462 |49,436 | | |- |Current tax receivable | | | |51 |38 | | |- |Cash and cash equivalents (£'000) | | | |94,008 |84,030 | | |- | | | | |131,521 |133,504 | | |- |Total assets | | | |162,142 |165,482 | | |- | colspan="8" |'''Liabilities''' |- | colspan="8" |'''Current liabilities''' |- |Trade and other payables | | | |(12,765) |(15,604) | | |- |Lease liabilities | | | |(1,708) |(1,566) | | |- |Provisions | | | |(1,526) |(519) | | |- | | | | |(15,999) |(17,689) | | |- | colspan="8" |'''Non-current liabilities''' |- |Lease liabilities | | | |(13,886) |(12,395) | | |- |Provisions | | | |(1,549) |(2,004) | | |- | | | | |(15,435) |(14,399) | | |- |Total liabilities | | | |(31,434) |(32,088) | | |- |Net assets | | | |130,708 |133,394 | | |- | colspan="8" |'''Equity''' |- |Share capital | | | |51 |51 | | |- |Share premium | | | |8,658 |8,930 | | |- |Own shares | | | |(740) |(473) | | |- |Retained earnings | | | |122,739 |124,886 | | |- |Total equity | | | |130,708 |133,394 | | |- ! colspan="6" |Cash flow statement ! ! |- | colspan="8" |'''Cash flows from operating activities''' |- |Profit for the financial year | | | |43,822 |46,739 | | |- | colspan="8" |Adjustments for: |- |Investment income | | | |(23) |(198) | | |- |Finance costs | | | |790 |768 | | |- |Income tax expense | | | |11,262 |11,672 | | |- |Depreciation and amortisation | | | |3,623 |3,643 | | |- |Share-based payment expense | | | |4,952 |4,728 | | |- |Decrease in provisions and other payables | | | |(69) |(1,007) | | |- |Loss on disposal of property, plant and equipment | | | |13 |21 | | |- |Profit on disposal of right-of-use assets | | | |(3) |0 | | |- |Increase in trade and other receivables | | | |(6,889) |(11,974) | | |- |Increase / (decrease) in trade and other payables | | | |(1,347) |2,839 | | |- |Cash generated from operations | | | |56,131 |57,231 | | |- |Income tax paid | | | |(11,455) |(11,433) | | |- |Interest expense paid | | | |(1) |0 | | |- |Net cash from/(used in) operating activities | | | |44,675 |45,798 | | |- | colspan="8" |'''Cash flows from investing activities''' |- |Purchase of other intangible assets | | | |(2,370) |(2,365) | | |- |Purchase of property, plant and equipment | | | |(1,174) |(1,014) | | |- |Acquisition of subsidiary, net of cash acquired | | | |(2,561) |0 | | |- |Interest received | | | |23 |198 | | |- |Net cash from/(used in) investing activities | | | |(6,082) |(3,181) | | |- | colspan="8" |'''Cash flows from financing activities''' |- |Payments of principal in relation to lease liabilities | | | |(1,241) |(1,716) | | |- |Payments of interest on lease liabilities | | | |(789) |(768) | | |- |Proceeds from issue of share capital | | | |199 |272 | | |- |Dividends paid | | | |(29,138) |(50,383) | | |- |Net cash from/(used in) financing activities | | | |(30,969) |(52,595) | | |- ! colspan="8" |Metrics |- |Cost of goods sold as a proportion of revenue (%) | | | |0% |0% | | |- |Operating expenses as a proportion of revenue (%) | | | |61.70% |64.00% | | |- |Tax rate (%) | | | |20.45% |19.98% | | |- |Depreciation and amortisation rate (%) | | | |15.97% |14.94% | | |- |Fixed Capital Investment (FCInv) as a proportion of revenue (%) | | | |2.43% |2.06% | | |- |Working Capital Investment (WCInv) as a proportion of revenue (%) | | | | |0.18% | | |- |Net borrowing as a proportion of revenue (%) | | | | -1.39% | -1.52% | | |- |Interest expense as a proportion of revenue (%) | | | |0.53% |0.48% | | |} {| class="wikitable" |+Trading 212 Group Limited !Year !1<ref>https://s3.eu-west-2.amazonaws.com/document-api-images-live.ch.gov.uk/docs/VjHMtIQiiQi__nVCWAt11Y5huQG68koLl03pvpnqrn0/application-pdf?X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Credential=ASIAWRGBDBV3KS3H3G5V%2F20230606%2Feu-west-2%2Fs3%2Faws4_request&X-Amz-Date=20230606T213520Z&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=b2374cf4a6daa79a50613961fbeed5cee094a9ab08c59ad284c7ee50ff859a78</ref> !2 !3 !4 !5 !6 !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 !31/12/2015 !31/12/2016 !31/12/2017 !31/12/2018 !31/12/2019 !31/12/2020 !31/12/2021 |- ! !Historic !Historic !Historic !Historic !Historic !Historic !Historic |- ! colspan="8" |Profit and loss |- |Revenue (£'000) |925 |3,081 | | | |124,077 |138,685 |- |Gross profit (£'000) | | | | | |124,077 |138,685 |- |Other operating income | | | | | |106 |4,701 |- |Administrative expenses | | | | | |(108,782) |(57,018) |- |Profit from operations |345 |1,603 | | | |15,401 |86,368 |- |Finance income | | | | | |79 |244 |- |Finance expense | | | | | |(321) |(564) |- |Profit before tax | | | | | |15,159 |86,048 |- |Tax expense | | | | | |(5,048) |(13,109) |- |Profit for the year | | | | | |10,111 |72,939 |- |Exchange (losses)/gains arising on translation on foreign operations | | | | | |1,522 |(1,317) |- |Total comprehensive income | | | | | |11,633 |71,622 |- ! colspan="8" |Balance sheet |- | colspan="8" |'''Assets''' |- | colspan="8" |'''Non-current assets''' |- |Property, plant and equipment | | | | | |1,882 |1,384 |- |Intangible assets | | | | | |67 |37 |- |Investment in associates | | | | | |202 |215 |- |Trade and other receivables | | | | | |35 |34 |- |Deferred tax assets | | | | | |37 |99 |- | | | | | | |2,223 |1,769 |- | colspan="8" |'''Current assets''' |- |Trade and other receivables | | | | | |28,952 |13,360 |- |Cash and cash equivalents | | | | | |24,649 |114,813 |- |Current asset investments | | | | | |14,076 |34,995 |- | | | | | | |67,677 |163,168 |- |Total assets | | | | | |69,900 |164,937 |- | colspan="8" |Liabilities |- | colspan="8" |'''Non-current liabilities''' |- |Loans and borrowings | | | | | |27 |40 |- | | | | | | |27 |40 |- | colspan="8" |'''Current liabilities''' |- |Trade and other payables | | | | | |24,524 |47,900 |- |Loans and borrowings | | | | | |636 |625 |- | | | | | | |25,160 |48,525 |- |Total liabilities | | | | | |25,187 |48,565 |- |Net assets | | | | | |44,713 |116,372 |- | colspan="8" |'''Issued capital and reserves attributable to owners of the parent''' |- |Share capital | | | | | |3,132 |3,132 |- |Foreign exchange reserves | | | | | |970 |(347) |- |Other reserves | | | | | |720 |720 |- |Retained earnings | | | | | |39,891 |112,867 |- | | | | | | |44,713 |116,372 |- |Total equity | | | | | |44,713 |116,372 |- ! colspan="8" |Cash flow statement |- | colspan="8" |'''Cash flows from operating activities''' |- |Profit for the year | | | | | |10,111 |72,939 |- | colspan="8" |'''Adjustments for:''' |- |Depreciation of property, plant and equipment | | | | | |705 |1,099 |- |Amortisation of intangible fixed assets | | | | | |22 |31 |- |Interest and other finance income | | | | | |(79) |(244) |- |Interest and other finance expenses | | | | | |321 |564 |- |Loss/(gain) on sale of property, plant and equipment | | | | | |(50) |904 |- |Foreign exchange gain/(loss) of revaluation of assets | | | | | |(40) |45 |- |Foreign exchange (loss)/gain on consolidation | | | | | |1,522 |(1,280) |- |Interest paid | | | | | |(321) |(564) |- |Interest received | | | | | |79 |244 |- |Income tax expense | | | | | |5,048 |13,109 |- | | | | | | |17,318 |86,847 |- | colspan="8" |'''Movements in working capital:''' |- |Decrease/(increase) in trade and other receivables | | | | | |(23,894) |15,531 |- |Increase in current asset investments | | | | | |(13,861) |(20,919) |- |Increase in trade and other payables | | | | | |13,156 |19,033 |- |Cash generated from operations | | | | | |(7,281) |100,492 |- |Income tax paid | | | | | |(2,061) |(9,134) |- |Net cash from/(used in) operating activities | | | | |7,306 |(9.342) |91,358 |- | colspan="8" |'''Cash flows from investing activities''' |- |Purchases of property, plant and equipment | | | | | |(1,819) |(1,564) |- |Purchases of intangible assets | | | | | |(79) |0 |- |Proceeds from disposal of property, plant and equipment | | | | | |131 |0 |- |Net cash from/(used in) investing activities | | | | |121 |(1,767) |(1,564) |- | colspan="8" |'''Cash flows from financing activities''' |- |Finance lease payments | | | | | |(112) |(69) |- |New finance leases | | | | | |0 |86 |- |Loan repayments | | | | | |(91) |(7,210) |- |Loans received | | | | | |7,210 |7,563 |- |Net cash from/(used in) financing activities | | | | |(3,902) |7,007 |370 |- ! colspan="8" |Metrics |- |Cost of goods sold as a proportion of revenue (%) | | | | | |0% |0% |- |Operating expenses as a proportion of revenue (%) | | | | | |87.67% |41.11% |- |Tax rate (%) | | | | | |33.30% |15.23% |- |Depreciation and amortisation rate (%) | | | | | |37.30% |79.52% |- |Fixed Capital Investment (FCInv) as a proportion of revenue (%) | | | | | |1.53% |1.13% |- |Working Capital Investment (WCInv) as a proportion of revenue (%) | | | | | | |52.01% |- |Net borrowing as a proportion of revenue (%) | | | | | |5.65% |0.27% |- |Interest expense as a proportion of revenue (%) | | | | | |0.26% |0.41% |} {| class="wikitable" |+Robinhood Markets, Inc. ! !31/12/2018 !31/12/2019 !31/12/2020 !31/12/2021 !31/12/2022 |- ! !Historic !Historic !Historic !Historic !Historic |- ! colspan="6" |Profit and loss |- | colspan="6" |'''Revenues:''' |- |Transaction-based revenues | | | |1,402 |814 |- |Net interest revenues | | | |256 |424 |- |Other revenues | | | |157 |120 |- |Total net revenues | | | |1,815 |1,358 |- | | | | | | |- | colspan="6" |'''Operating expenses:''' |- |Brokerage and transaction | | | |158 |179 |- |Technology and development | | | |1,234 |878 |- |Operations | | | |368 |285 |- |Marketing | | | |325 |103 |- |General and administrative | | | |1,371 |924 |- |Total operating expenses | | | |3,456 |2,369 |- | | | | | | |- |Change in fair value of convertible notes and warrant liability | | | |2,045 |0 |- |Other (income) expense, net | | | |(1) |16 |- |Income (loss) before income taxes | | | |(3,685) |(1,027) |- |Provision for (benefit from) income taxes | | | |2 |1 |- |Net income (loss) | | | |(3,687) |(1,028) |- | colspan="6" |'''Net income (loss) attributable to common stockholders:''' |- |Basic | | | |(3,687) |(1,028) |- |Diluted | | | |(3,687) |(1,028) |- | colspan="6" |'''Net income (loss) per share attributable to common stockholders:''' |- |Basic | | | |(7.49) |(1.17) |- |Diluted | | | |(7.49) |(1.17) |- | colspan="6" |'''Weighted-average shares used to compute net income (loss) per share attributable to common stockholders:''' |- |Basic | | | |492,381,190 |878,630,024 |- |Diluted | | | |492,381,190 |878,630,024 |- ! colspan="6" |Balance sheet |- | colspan="6" |'''Assets''' |- | colspan="6" |'''Current assets:''' |- |Cash and cash equivalents | | | |6,253 |6,339 |- |Cash segregated under federal and other regulations | | | |3,992 |2,995 |- |Receivables from brokers, dealers, and clearing organizations | | | |88 |76 |- |Receivables from users, net | | | |6,639 |3,218 |- |Securities borrowed | | | |0 |517 |- |Deposits with clearing organizations | | | |328 |186 |- |Asset related to user cryptocurrencies safeguarding obligation | | | |0 |8,431 |- |User-held fractional shares | | | |1,834 |997 |- |Prepaid expenses | | | |92 |86 |- |Other current assets | | | |57 |72 |- |Total current assets | | | |19,283 |22,917 |- |Property, software, and equipment, net | | | |146 |146 |- |Goodwill | | | |101 |100 |- |Intangible assets, net | | | |34 |25 |- |Non-current prepaid expenses | | | |44 |17 |- |Other non-current assets | | | |161 |132 |- |Total assets | | | |19,769 |23,337 |- | colspan="6" |'''Liabilities and stockholders’ equity''' |- | colspan="6" |'''Current liabilities:''' |- |Accounts payable and accrued expenses | | | |252 |185 |- |Payables to users | | | |6,476 |4,701 |- |Securities loaned | | | |3,651 |1,834 |- |User cryptocurrencies safeguarding obligation | | | |0 |8,431 |- |Fractional shares repurchase obligation | | | |1,834 |997 |- |Other current liabilities | | | |134 |105 |- |Total current liabilities | | | |12,347 |16,253 |- |Other non-current liabilities | | | |129 |128 |- |Total liabilities | | | |12,476 |16,381 |- | colspan="6" |'''Commitments and contingencies''' |- | colspan="6" |'''Stockholders’ equity:''' |- |Additional paid-in capital | | | |11,169 |11,861 |- |Accumulated other comprehensive income (loss) | | | |1 |0 |- |Accumulated deficit | | | |(3,877) |(4,905) |- |Total stockholders’ equity | | | |7,293 |6,956 |- |Total liabilities and stockholders’ equity | | | |19,769 |23,337 |- ! colspan="6" |Cash flow statement |- | colspan="6" |'''Operating activities:''' |- |Net income (loss) | | | | | |- | colspan="6" |Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |- |Depreciation and amortization | | |10 |26 |61 |- |Net cash from/(used in) operating activities | | |1,876 |(885) |(852) |- | colspan="6" |'''Investing activities:''' |- |Purchase of property, software, and equipment | | |(24) |(63) |(28) |- |Capitalization of internally developed software | | |(8) |(20) |(29) |- |Acquisitions of a business, net of cash acquired | | |0 |(125) |0 |- |Purchase of investments | | |0 |(27) |(25) |- |Sales of investments | | |0 |0 |42 |- |Other | | |0 |(3) |(20) |- |Net cash from/(used in) investing activities | | |(32) |(238) |(60) |- | colspan="6" |'''Financing activities:''' |- |Proceeds from issuance of common stock in connection with initial public offering, net of offering costs | | |0 |2,052 |0 |- |Proceeds from issuance of common stock under the Employee Stock Purchase Plan | | |0 |7 |16 |- |Taxes paid related to net share settlement of equity awards | | |0 |(422) |(12) |- |Proceeds from issuance of convertible notes and warrants | | |0 |3,552 |0 |- |Draws on credit facilities | | |938 |1,968 |21 |- |Repayments on credit facilities | | |(938) |(1,968) |(21) |- |Payments of debt issuance costs | | |0 |0 |(10) |- |Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs | | |1,267 |0 |0 |- |Proceeds from exercise of stock options, net of repurchases | | |9 |14 |6 |- |Net cash from/(used in) financing activities | | |1,276 |5,203 |0 |- ! colspan="6" |Metrics |- |Cost of goods sold as a proportion of revenue (%) | | | |N/A |N/A |- |Operating expenses as a proportion of revenue (%) | | | |190.41% |174.45% |- |Tax rate (%) | | | |0.05% |0.10% |- |Depreciation and amortisation rate (%) | | | |14.44% |35.67% |- |Fixed Capital Investment (FCInv) as a proportion of revenue (%) | | | |3.47% |2.06% |- |Working Capital Investment (WCInv) as a proportion of revenue (%) | | | | |(20.03)% |- |Net borrowing as a proportion of revenue (%) | | |0% |0% |0% |- |Interest expense as a proportion of revenue (%) | | | |0% |0% |} {| class="wikitable" |+Blackberry ! !28/02/2019 !28/02/2020 !28/02/2021 !28/02/2022 !28/02/2023 |- ! !Historic !Historic !Historic !Historic !Historic |- ! colspan="6" |Profit and loss |- |Revenue | | |893 |718 |656 |- |Cost of sales | | |250 |251 |237 |- | | | | | | |- |Gross margin | | |643 |467 |419 |- | | | | | | |- |Operating expenses | | | | | |- |Research and development | | |215 |219 |207 |- |Selling, marketing and administration | | |344 |297 |340 |- |Amortization | | |182 |165 |96 |- |Impairment of goodwill | | |594 |0 |245 |- |Impairment of long-lived assets | | |43 |0 |235 |- |Gain on sale of property, plant and equipment, net | | |0 |0 |(6) |- |Debentures fair value adjustment | | |372 |(212) |(138) |- |Litigation settlement | | |0 |0 |165 |- | | | |1,750 |469 |1,144 |- |Operating loss | | |(1,107) |(2) |(725) |- |Investment income (loss), net | | |(6) |21 |5 |- | | | | | | |- |Income (loss) before income taxes | | |(1,113) |19 |(720) |- |Provision for (recovery of) income taxes | | |(9) |7 |14 |- | | | | | | |- |Net income (loss) | | |(1,104) |12 |(734) |- |Earnings (loss) per share | | | | | |- |Basic | | |(1.97) |0.02 |(1.27) |- |Diluted | | |(1.97) |(0.31) |(1.35) |- ! colspan="6" |Balance sheet |- | colspan="6" |'''Assets''' |- | colspan="6" |'''Current''' |- |Cash and cash equivalents | | | |378 |295 |- |Short-term investments | | | |334 |131 |- |Accounts receivable, net of allowance of $1 and $4, respectively | | | |138 |120 |- |Other receivables | | | |25 |12 |- | | | | | | |- |Income taxes receivable | | | |9 |3 |- |Other current assets | | | |159 |182 |- | | | | | | |- | | | | |1,043 |743 |- |Restricted cash and cash equivalents | | | |28 |27 |- |Long-term investments | | | |30 |34 |- |Other long-term assets | | | |9 |8 |- | | | | | | |- |Operating lease right-of-use assets, net | | | |50 |44 |- |Property, plant and equipment, net | | | |41 |25 |- |Goodwill | | | |844 |595 |- |Intangible assets, net | | | |522 |203 |- | | | | | | |- | | | | |2,567 |1,679 |- | colspan="6" |'''Liabilities''' |- | colspan="6" |'''Current''' |- |Accounts payable | | | |22 |24 |- |Accrued liabilities | | | |157 |143 |- |Income taxes payable | | | |11 |20 |- |Debentures | | | |0 |367 |- |Deferred revenue, current | | | |207 |175 |- | | | | |397 |729 |- |Deferred revenue, non-current | | | |37 |40 |- |Operating lease liabilities | | | |66 |52 |- |Other long-term liabilities | | | |4 |1 |- |Long-term debentures | | | |507 |0 |- | | | | | | |- | | | | |1,011 |822 |- |Commitments and contingencies | | | | | |- |Shareholders' equity | | | | | |- |Capital stock and additional paid-in capital | | | | | |- |Preferred shares: authorized unlimited number of non-voting, cumulative, redeemable and retractable | | | |0 |0 |- |Common shares: authorized unlimited number of non-voting, redeemable, retractable Class A common shares and unlimited number of voting common shares | | | | | |- |Issued and outstanding - 582,157,203 voting common shares (February 28, 2022 - 576,227,898) | | | |2,869 |2,909 |- |Deficit | | | |(1,294) |(2,028) |- |Accumulated other comprehensive loss | | | |(19) |(24) |- | | | | |1,556 |857 |- | | | | |2,567 |1,679 |- ! colspan="6" |Cash flow statement |- | colspan="6" |'''Cash flows from operating activities''' |- | | | | | | |- |Net income (loss) | | |(1,104) |12 |(734) |- |Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | | | | | |- |Amortization | | |198 |176 |105 |- | | | | | | |- |Stock-based compensation | | |44 |36 |34 |- |Gain on sale of investment | | |0 |(22) |0 |- |Impairment of goodwill | | |594 |0 |245 |- |Impairment of long-lived assets | | |43 |0 |235 |- | | | | | | |- |Gain on sale of property, plant and equipment, net | | |0 |0 |(6) |- |Debentures fair value adjustment | | |372 |(212) |(138) |- | | | | | | |- |Operating leases | | |(4) |(16) |(16) |- |Other | | |(5) |(3) |(5) |- |Net changes in working capital items | | | | | |- |Accounts receivable, net of allowance | | |29 |44 |18 |- |Other receivables | | |(11) |0 |13 |- | | | | | | |- |Income taxes receivable | | |(4) |1 |6 |- |Other assets | | |55 |15 |(1) |- |Accounts payable | | |(11) |2 |2 |- |Accrued liabilities | | |(20) |(16) |(11) |- |Income taxes payable | | |(15) |5 |9 |- |Deferred revenue | | |(79) |(50) |(29) |- |Net cash provided by (used in) operating activities | | |82 |(28) |(263) |- | colspan="6" |'''Cash flows from investing activities''' |- |Acquisition of long-term investments | | |(5) |(1) |(3) |- |Proceeds on sale, maturity or distribution from long-term investments | | |0 |35 |0 |- |Acquisition of property, plant and equipment | | |(8) |(8) |(7) |- |Proceeds on sale of property, plant and equipment | | |0 |0 |17 |- |Acquisition of intangible assets | | |(36) |(31) |(34) |- | | | | | | |- |Acquisition of short-term investments | | |(1,039) |(916) |(514) |- |Acquisition of restricted short-term investments | | |(24) |0 |0 |- |Proceeds on sale or maturity of restricted short-term investments | | |0 |24 |0 |- |Proceeds on sale or maturity of short-term investments | | |1,047 |1,104 |717 |- | | | | | | |- |Net cash provided by (used in) investing activities | | |(65) |207 |176 |- | colspan="6" |'''Cash flows from financing activities''' |- |Issuance of common shares | | |19 |10 |6 |- | | | | | | |- |Payment of finance lease liability | | |(1) |0 |0 |- |Repurchase of 3.75% Debentures | | |(610) |0 |0 |- |Issuance of 1.75% Debentures | | |365 |0 |0 |- | | | | | | |- |Net cash provided by (used in) financing activities | | |(227) |10 |6 |- |Effect of foreign exchange gain (loss) on cash, cash equivalents, restricted cash, and restricted cash equivalents | | |2 |(1) |(3) |- |Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents during the period | | |(208) |188 |(84) |- |Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period | | |426 |218 |406 |- |Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period | | |218 |406 |322 |- ! colspan="6" |Metrics |- |Cost of goods sold as a proportion of revenue (%) | | |28.00% |34.96% |36.13% |- |Operating expenses as a proportion of revenue (%) | | |195.97% |65.32% |174.39% |- |Tax rate (%) | | |0.81% |36.84% | -1.94% |- |Depreciation and amortisation rate (%) | | | |31.61% |47.29% |- |Fixed Capital Investment (FCInv) as a proportion of revenue (%) | | |4.93% |5.43% |6.25% |- |Working Capital Investment (WCInv) as a proportion of revenue (%) | | | |89.97% |2.13% |- |Net borrowing as a proportion of revenue (%) | | | |0% |0% |- |Interest expense as a proportion of revenue (%) | | | |0% |0% |} === Funding History<ref>https://www.crunchbase.com/organization/freetrade-limited</ref> === As of November 24th 2021, the company held a valuation of £658 million. However, it has since executed two funding rounds through debt financing instead of equity, which hints at a potential decrease in its valuation from the previous £658 million. It has been reported by relatively reliable sources that the current valuation of the company is £225 million.<ref name=":9" /> <!-- The figures in the table below don't quite align with the figures in the financial statements of Crowdcube. I think the more accurate source is the financial statements, so I suggest going with the figures there. --> {| class="wikitable" !Date announced !Investment type !Post money valuation !Amount !No. of investors |- |15/09/2022 |Equity Crowdfunding | - |US$1,733,820.00 | - |- |20/05/2022 |Debt Financing | - |£30,000,000.00 |6 |- |24/11/2021 |Equity Crowdfunding |£658,363,176.00 |£8,363,176.00 | - |- |23/03/2021 |Series B |US$345,057,713.00 |£35,000,000.00 |4 |- |14/05/2020 |Equity Crowdfunding | - |£7,099,999.00 | - |- |31/10/2019 |Series A | - |£12,000,000.00 |1 |- |25/06/2019 |Equity Crowdfunding | - |£3,793,410.00 |1 |- |25/04/2019 |Equity Crowdfunding | - |US$1,927,630.00 |1 |- |29/07/2018 |Equity Crowdfunding |£46,516,630.00 |£3,516,630.00 |1 |- |18/05/2018 |Pre Seed | - | - |2 |- |05/03/2017 |Equity Crowdfunding | - |£1,071,850.00 |4 |- |01/03/2017 |Seed | - | - | - |- |28/07/2016 |Equity Crowdfunding |£2,069,980.00 |£169,980.00 | - |} According to Crunchbase, Freetrade has raised a total of $135.5 million since the company's inception across 13 funding rounds.<ref>https://www.crunchbase.com/organization/freetrade-limited/company_financials</ref> However, that seems inaccurate when compared against the company's financial statements. ===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 |} === Freetrade adjusted beta calculation === {| class="wikitable" |+ !Date !iShares MSCI World ETF unit price (USD) !Freetrade share price (GBP) !iShares MSCI World ETF unit price change (%) !Freetrade share price change (%) |- |01/07/2016 |63 |0.08 | | |- |01/02/2017 |68 |0.15 |7.94% |87.50% |- |01/03/2018 |79 |0.25 |16.18% |66.67% |- |01/04/2019 |85 |0.84 |7.59% |236.00% |- |01/06/2019 |84 |0.96 | -1.18% |14.29% |- |01/10/2019 |88 |0.96 |4.76% |0.00% |- |01/05/2020 |86 |2.51 | -2.27% |161.46% |- |01/02/2021 |110 |3.77 |27.91% |50.20% |- |01/11/2021 |127 |9.25 |15.45% |145.36% |- |01/06/2023 |120 |2.60 | -5.51% | -71.89% |} {| class="wikitable" |+Freetrade beta and adjusted beta value ! !Beta !Adjusted beta !Comment(s) |- |Consistent (monthly) intervals between data points |0.73 |0.82 |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 Freetrade valuation event in January 2022, so we have assumed that the valuation of Freetrade is the same in January 2022 as the previous month of December 2020 (at 9.25p), and, therefore, the share price change in January is 0%. |- |Inconsistent intervals between data points |2.28 |1.85 |Because there's only seven Freetrade valuation events, and, therefore, seven, available data points, calculating beta based on inconsistent intervals between data points seems to be the best approach. |} === Other information === Freetrade was unsuccessful in its 'Freetrade' word application in the EU.<ref>https://www.trademarkelite.com/europe/trademark/trademark-detail/014989172/FREETRADE</ref> Does this mean that Freetrade has to pay the trademark holder a fee to use the 'Freetrade' word in the EU? {| class="wikitable" |+ ! !Freetrade !Trading 212 !Hargreaves Lansdown |- |Austria |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0">https://globefunder.com/trading-212-countries/</ref> |style="background: red; color: white;" |No |- |Bulgaria |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |Croatia |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |Cyprus |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |Czech Republic |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |Denmark |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |Estonia |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |Finland |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |France |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |French Guiana |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |Gibraltar |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |Greece |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |Guadeloupe |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |Guernsey |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |Hungary |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |Iceland |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |Ireland |style="background: green; color: white;" |Yes<ref name=":1">https://www.financemagnates.com/forex/brokers/freetrade-enters-netherland-ireland-with-zero-free-services/</ref> |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |Isle of Man |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |Italy |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |Jersey |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |Latvia |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |Liechtenstein |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |Lithuania |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |Luxembourg |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |Malta |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |Martinique |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |Mayotte |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |Netherlands |style="background: green; color: white;" |Yes<ref name=":1" /> |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |Norway |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |Poland |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |Portugal |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |Reunion |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |Romania |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |Slovakia |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |Slovenia |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |Spain |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |Sweden |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |Switzerland |style="background: red; color: white;" |No |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: red; color: white;" |No |- |United Kingdom |style="background: green; color: white;" |Yes<ref>https://help.freetrade.io/en/articles/1794457-which-countries-is-freetrade-available-in</ref> |style="background: green; color: white;" |Yes<ref name=":0" /> |style="background: green; color: white;" |Yes |} {| class="wikitable" |+ ! !Population !Population date !Date source !Data source link |- |Austria |9,154,938 |09/06/2023 |Worldometer |https://www.worldometers.info/world-population/austria-population/ |- |Bulgaria |6,797,490 |09/06/2023 |Worldometer |https://www.worldometers.info/world-population/bulgaria-population/ |- |Croatia |4,032,123 |09/06/2023 |Worldometer |https://www.worldometers.info/world-population/croatia-population/ |- |Cyprus |1,232,816 |09/06/2023 |Worldometer |https://www.worldometers.info/world-population/cyprus-population/ |- |Czech Republic |10,766,276 |09/06/2023 |Worldometer |https://www.worldometers.info/world-population/czech-republic-population/ |- |Denmark |5,851,092 |09/06/2023 |Worldometer |https://www.worldometers.info/world-population/denmark-population/ |- |Estonia |1,329,115 |09/06/2023 |Worldometer |https://www.worldometers.info/world-population/estonia-population/ |- |Finland |5,851,092 |09/06/2023 |Worldometer |https://www.worldometers.info/world-population/finland-population/ |- |France |65,682,979 |09/06/2023 |Worldometer |https://www.worldometers.info/world-population/france-population/ |- |French Guiana |321,180 |09/06/2023 |Worldometer |https://www.worldometers.info/world-population/french-guiana-population/ |- |Gibraltar |33,662 |09/06/2023 |Worldometer |https://www.worldometers.info/world-population/gibraltar-population/ |- |Greece |10,276,210 |09/06/2023 |Worldometer |https://www.worldometers.info/world-population/greece-population/ |- |Guadeloupe |395,766 |09/06/2023 |Worldometer |https://worldpopulationreview.com/countries/guadeloupe-population |- |Guernsey |63,521 |09/06/2023 |Worldometer |https://worldpopulationreview.com/countries/guernsey-population |- |Hungary |9,589,714 |09/06/2023 |Worldometer |https://www.worldometers.info/world-population/hungary-population/ |- |Iceland |347,645 |09/06/2023 |Worldometer |https://www.worldometers.info/world-population/iceland-population/ |- |Ireland |5,096,846 |09/06/2023 |Worldometer |https://www.worldometers.info/world-population/ireland-population/ |- |Isle of Man |86,334 |09/06/2023 |Worldometer |https://www.worldometers.info/world-population/isle-of-man-population/ |- |Italy |60,205,049 |09/06/2023 |Worldometer |https://www.worldometers.info/world-population/italy-population/ |- |Jersey |111,725 |09/06/2023 |Worldometer |https://nationsgeo.com/population/europe/je/ |- |Latvia |1,825,986 |09/06/2023 |Worldometer |https://www.worldometers.info/world-population/latvia-population/ |- |Liechtenstein |38,445 |09/06/2023 |Worldometer |https://www.worldometers.info/world-population/liechtenstein-population/ |- |Lithuania |2,612,554 |09/06/2023 |Worldometer |https://www.worldometers.info/world-population/lithuania-population/ |- |Luxembourg |655,414 |09/06/2023 |Worldometer |https://www.worldometers.info/world-population/luxembourg-population/ |- |Malta |534,914 |09/06/2023 |Worldometer |https://nationsgeo.com/population/europe/mt/ |- |Martinique |374,430 |09/06/2023 |Worldometer |https://www.worldometers.info/world-population/martinique-population/ |- |Mayotte |334,796 |09/06/2023 |Worldometer |https://nationsgeo.com/population/africa/yt/ |- |Netherlands |17,244,317 |09/06/2023 |Worldometer |https://www.worldometers.info/world-population/netherlands-population/ |- |Norway |5,543,798 |09/06/2023 |Worldometer |https://www.worldometers.info/world-population/norway-population/ |- |Poland |37,727,112 |09/06/2023 |Worldometer |https://www.worldometers.info/world-population/poland-population/ |- |Portugal |10,110,612 |09/06/2023 |Worldometer |https://www.worldometers.info/world-population/portugal-population/ |- |Reunion |913,818 |09/06/2023 |Worldometer |https://www.worldometers.info/world-population/reunion-population/ |- |Romania |18,864,146 |09/06/2023 |Worldometer |http://srv1.worldometers.info/world-population/romania-population/ |- |Slovakia |5,467,253 |09/06/2023 |Worldometer |https://www.worldometers.info/world-population/slovakia-population/ |- |Slovenia |2,079,771 |09/06/2023 |Worldometer |http://srv1.worldometers.info/world-population/slovenia-population/ |- |Spain |46,807,044 |09/06/2023 |Worldometer |https://www.worldometers.info/world-population/spain-population/ |- |Sweden |10,281,472 |09/06/2023 |Worldometer |https://www.worldometers.info/world-population/sweden-population/ |- |Switzerland |8,839,152 |09/06/2023 |Worldometer |http://srv1.worldometers.info/world-population/switzerland-population/ |- |United Kingdom |68,916,741 |09/06/2023 |Worldometer |https://www.worldometers.info/world-population/uk-population/ |} {| class="wikitable" |+ ! !Freetrade !Trading 212 !Hargreaves Lansdown |- |How many people are able to access the platform? |68,916,741 |436,397,348 |68,916,741 |- |What proportion of the global population is able to access the platform?<ref>Here, we have assumed that the global population is 8,037,772,395 people (source: https://www.worldometers.info/world-population/#:~:text=World%20Population%20Clock%3A%208%20Billion,(LIVE%2C%202023)%20%2D%20Worldometer<nowiki/>)</ref> |0.86% |5.43% |0.86% |} {| class="wikitable" |+ !Year !1 !2 !3 !4 !5 !6 |- !Year end date !30/09/2016 !30/09/2017 !30/09/2018 !30/09/2019 !30/09/2020 !30/09/2021 |- ! !Historic !Historic !Historic !Historic !Historic !Historic |- ! colspan="7" |Revenue breakdown |- |Transaction revenue (£'000) | | | | |1,323 |9,048 |- |Recurring revenue (£'000) | | | | |338 |3,274 |- |Transaction revenue as a proportion of total revenue (%) | | | | |80 |74 |- |Recurring revenue as a proportion of total revenue (%) | | | | |20 |26 |- ! colspan="7" |Operating loss |- | colspan="7" |'''Operating loss is stated after charging:''' |- |Depreciation of plant, property and equipment | | | | |84 |116 |- |Depreciation of right-of-use assets | | | | |0 |215 |- |Amortisation of intangible assets | | | | |592 |1,143 |- |Share-based payments | | | | |2,022 |818 |- ! colspan="7" |Auditor's remuneration |- |For the audit of Freetrade Limited and the consolidated financial statements | | | | |65 |81 |- |Audit related assurance services | | | | |138 |96 |- |Non-audited related services | | | | |0 |30 |- |Total | | | | |203 |207 |- ! colspan="7" |Employee costs |- | colspan="7" |'''Staff costs (including Directors) comprise:''' |- |Wages and salaries | | | | |3,983 |8,769 |- |Social security costs | | | | |455 |1,044 |- |Pension costs | | | | |188 |355 |- |Share-based payments | | | | |2,022 |818 |- |Total | | | | |6,648 |10,986 |- | colspan="7" |'''The number of permanent employees (excluding Directors) was:''' |- |As at 30 September | | | | |80 |201 |- |Monthly average for the financial year | | | | |61 |118 |- ! colspan="7" |Taxation |- |Current tax: | | | | | | |- |Current period | | | | | | |- |Adjustments in respect of prior periods | | | | | | |- |Total current tax | | | | | | |- |Deferred tax: | | | | | | |- |Origination and reversal of temporary differences | | | | | | |- |Adjustment in respect of prior periods | | | | | | |- |Total deferred tax | | | | | | |- |Total income tax expense | | | | | | |- |Profit before tax | | | | | | |- |Current corporation tax of 19% | | | | | | |- |Prior year adjustment | | | | | | |- |Share-based payments | | | | | | |- |Non-deductible expenses | | | | | | |- |Difference in overseas tax rates | | | | | | |- |Deferred tax not recognised | | | | | | |- |R&D tax credit | | | | | | |- |Other | | | | | | |- |Total income tax credit | | | | | | |- | colspan="7" |'''Investments:''' |- |Investment in Freetrade Europa AB | | | | |0 |544 |- | colspan="7" |'''Property, plant and equipment''' |- | colspan="7" |'''Cost:''' |- |Computer equipment | | | | |203 |432 |- |Office equipment | | | | |38 |127 |- |Right-of-use assets | | | | |0 |5,499 |- |Total | | | | |241 |6,058 |- | colspan="7" |'''Accumulate depreciation:''' |- |Computer equipment | | | | |121 |226 |- |Office equipment | | | | |26 |37 |- |Right-of-use assets | | | | |0 |215 |- |Total | | | | |147 |478 |- | colspan="7" |'''Net book value:''' |- |Computer equipment | | | | |82 |206 |- |Office equipment | | | | |12 |90 |- |Right-of-use assets | | | | |0 |5,284 |- |Total | | | | |94 |5,580 |- ! colspan="7" |Intangible assets |- |Cost | | | | | | |- |Accumulated amortisation | | | | | | |- |Net book value | | | | | | |- | colspan="7" |'''Trade and other receivables''' |- |Trade receivables | | | | |127 |397 |- |Less: provision for impairment of trade receivables | | | | |(87) |(309) |- |Prepayment and accrued income | | | | |409 |5,476 |- |Amounts due from subsdiary undertakings. | | | | |0 |300 |- |Other receivables | | | | |2,312 |3,017 |- |Total | | | | |2,761 |8,881 |- |Current | | | | |2,761 |8,150 |- |Non-current | | | | |0 |731 |- | colspan="7" |'''Trade and other payables''' |- |Trade payables | | | | |421 |1,880 |- |Accruals | | | | |965 |2,960 |- |Deferred revenue | | | | |0 |183 |- |Other taxation and social security | | | | |0 |99 |- |Other payables | | | | |75 |109 |- |Total | | | | |1,461 |5,231 |- | colspan="7" |'''Key management personnel''' |- |Salary, benefits and bonus | | | | |447 |377 |- |Defined contribution pension cost | | | | |24 |16 |- |Share-based payments | | | | |1,585 |411 |- |Total | | | | |2,056 |804 |- | colspan="7" |'''Directors' emoluments for the year included in staff costs are as follows:''' |- |Salary, benefits and bonus | | | | |297 |356 |- |Defined contribution pension cost | | | | |16 |16 |- |Share-based payments | | | | |960 |610 |- |Total | | | | |1,273 |982 |- | colspan="7" |'''In respect of the highest paid Director''' |- |Salary, benefits and bonus | | | | |130 |151 |- |Defined contribution pension cost | | | | |7 |7 |- |Share-based payments | | | | |756 |411 |- |Total | | | | |893 |569 |- | colspan="7" |'''Other related parties''' |- |Blacher Limited | | | | |19 |36 |- ! colspan="7" |Equity |- |A Ordinary | | | | |23,055,383 |21,527,583 |- |B Investment | | | | |25,267,169 |27,021,193 |- |Series A | | | | |6,276,124 |6,276,124 |- |Series B | | | | |0 |9,281,111 |- |Total | | | | |54,598,676 |64,106,011 |} === Key terms of the convertible loan note === {| class="wikitable" |+Key terms ! colspan="3" |A convertible loan is an investment for equity in a company where shares will be issued at a future date. Usually, the shares will be issued when the company completes a larger round of investment. A convertible loan allows a company to raise equity finance without setting a valuation. Please see below a summary of the key terms of within tranche 1 of the convertible loan notes offered to Crowdcube investors in this round. |- |Share type(s) on offer |Series B shares. |The convertible loan notes will convert into the most senior share class created and in issue at the point of conversion. The Company's most senior share class is currently Series B shares, which carry voting and pre-emption rights and a preference to receive the issue price back first alongside the other preference shares in certain circumstances. |- |Duration/Relevant Date |12 months from the date of issue. |If no conversion event occurs before this date, the convertible loan notes will automatically convert into Shares. |- |Discount Rate |20% |This is the amount of discount on the Shares which investors will receive compared to the share price at which other shares in the Company are being issued following a Qualified Financing event. |- |Interest |N/A. |The convertible loan notes offered in tranche 1 of this Crowdcube round do not accrue interest. |- |Valuation Cap |£400,000,000 pre-money valuation. |Convertible loans may contain a Valuation Cap, which is the maximum pre-money valuation of the Company that will be used to calculate the share price if there is a Qualified Financing prior to the Relevant Date. |- |Default Price |£3.7711 |The Default Price is the price per Share of the Company that will be used to calculate the number of Shares investors will receive following a CET1 Capital Event, Sale or on the Relevant Date. |- |Conversion Events |The convertible loan will convert into fully paid Shares on the occurrence of the following: * Qualified Financing - automatically if the Company raises at least £40,000,000 at a price per Share of more than £3.7711 (Default Price). * CET1 Capital Event - in the event that the capital held by the Company to meet its regulatory capital requirements under the FCA’s rules, falls below a certain level. Please note that in the event that there is a CET1 Capital Event only the amount of outstanding convertible loan required to meet the regulatory capital requirement will convert. * Relevant Date - if no conversion event has occurred automatically on the date falling 12 months after the date of issue of the convertible loan note (or such other date as may be agreed between the Company and the Noteholder Majority). * Sale - automatically on a sale of all, or substantially all of, the Company’s assets; or a sale of any of the shares in the Company resulting in a change of control of the Company. |The convertible loan notes will convert into fully paid Shares in the Company on the occurrence of certain events. |- |Conversion Price | * On a Qualified Financing a price per Share equal to the lower of: ** the lowest price per Share paid by investors in the Qualified Financing by a 20% discount; and ** a price per share which results from dividing a pre-money valuation of £400,000,000 by the number of Shares in the Fully Diluted Share Capital. * On a CET1 Capital Event; the Relevant Date; or a Sale, the Default Price (£3.7711 per Share). |This is the price per Share at which the convertible loan notes will convert into Shares in the Company following a Qualified Financing, CET1 Capital Event, Relevant Date or Sale. |- |Additional Shares |In the event that, following conversion of any of the convertible loan notes prior to a Qualified Financing, the Company issues Shares at a price less than the Default Price, noteholders will be issued with such number of additional Conversion Shares to put them in the position they would have been if the loan notes had converted at the lower price. |The convertible loan notes being offered to Crowdcube investors benefit from anti-dilution protection. |- |Repayment |Provided no CET1 Capital Event has occurred and the FCA has given prior permission for such repayment, the convertible loan notes are repayable at the written demand of the majority of noteholders (being holders of 66.67% of the principal amount outstanding) on an Event of Default - i.e. if the Company becomes insolvent. |In certain circumstances the convertible loan notes may be repaid, rather than converted into Shares. |- |Tax relief being offered |N/A. |Tax relief is not being offered in respect of tranche 1 of the convertible loan notes offered in this Crowdcube round. |}
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