Eight Capital Partners PLC reported its maiden set of interim results but said investors should instead consider the “transformational nature” of work that does not yet feature on its income statement or balance sheet.
In the first six months of 2022, the fintech group that operates via subsidiaries Innovative Finance and Epsion Capital, generated £58,000 of revenues, compared to £772,000 in the prior 12 months to December 2021, the only previous period’s accounts prepared under IFRS.
A loss before tax of £506,000 was reported for the half year versus £98,000 in the past year.
But already in the second half of the year, as announced earlier this month, the company has generated £1mln of revenues from fees earned by Innovative and Epsion on transactions and related corporate activities.
Chairman Dominic White said the fees do not feature in the half-yearly numbers, despite the “great deal of vital work” in the period that led them but “the simple fact that they were success fees precluded them”.
White said the plus side was that Eight Capital knows that 2022 revenues already exceeded the previous year by at least 50%, for which he hailed the work of the group’s two operating subsidiaries.
“Although the wider markets are difficult, both Innovative and Epsion continue to develop an interesting pipeline of transactions that include fintech acquisition opportunities for Eight Capital and transactions with third parties,” he said.
White said the “most significant” aspect for the future of the group's development is the progress being made on its balance sheet, with a circular to be soon sent to shareholders seeking a waiver of obligations under the City code on takeovers and mergers to enable certain existing debts to be converted into equity in the company.
“This will open the door to creating a much larger and more robust balance sheet and a company that we believe will quickly grow to be far more interesting to investors,” White said.
“We want to be, and expect to become, a significant player in our sphere of fintech enablers and service providers.”