Annual Financial Report

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION (EU) NO. 596/2014 OF THE EUROPEAN PARLIAMENT AND THE COUNCIL OF 16 APRIL 2014 ON MARKET ABUSE AS IT FORMS PART OF RETAINED EU LAW AS DEFINED IN THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 (THE "MARKET ABUSE REGULATION"). UPON PUBLICATION OF THIS ANNOUNCEMENT, THE INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

STARTUP GIANTS PLC

(“Startup Giants” or the “Company”; AQSE: SUG)

FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2022

The directors of Startup Giants (the “Directors”) present below the Company’s audited financial results for the year ended 31 December 2022. Startup Giants is a UK-based start-up accelerator that invests in and mentors internet technology start-up businesses in the UK and internationally.

The financial information below is extracted from, but does not on its own constitute, the Company’s statutory financial statements. These are contained in the Annual Report and Financial Statements for the Year Ended 31 December 2022, which are expected to be posted to shareholders imminently, and which will then be immediately available on the Company’s website (startupgiants.com).

Financial Results for the Year Ended 31 December 2022

Startup Giants undertook consultancy work for and provided support services to early-stage entrepreneurs, generating revenue of £320,957 (2021: £623,839). The reduced revenue in comparison with 2021 reflects tightening economic conditions and in specific terms is mainly attributable to a lesser number of new fee-paying visa applicants joining the Company’s portfolio on its standard business support programme. There was also a reduction in administrative expenses, which were largely composed of costs associated with the support provided to endorsee entrepreneurs, to £456,368 (2021: £579,368). The Company recorded an operating loss of £135,411 (2021: profit of £44,471) and a total comprehensive loss of £136,514 (2021: profit of £43,814) translating into a loss per share of 10.94 pence (2021: profit of 3.88 pence per share). At the end of the year, net assets stood at £556,134 (2021: £692,648); cash and cash-equivalents in hand stood at £712,389 (2021: £1,098,838).

Significant Features of Financial 2022

The focus of Startup Giants for the majority of 2022 remained on supporting founders already in the Company’s portfolio to target their early stage investment rounds with private investors and funds within the Company’s network, as well as the selection and support of global opportunities and talent from visa applicants seeking to bring their innovation to the United Kingdom, in order to further expand the Company’s portfolio of founders.

During the second half of the year, the Company also ran trials of a partnership program with several startup mentoring organisations providing access to over 200 nurtured startups, and 20 independent venture capital syndicates, qualifying partner investment opportunities at pre-seed and seed stage, and facilitating demo day introductions to the venture capital syndicates for companies located in the UK, India, the USA, Canada, and the Middle East. The Company used feedback from these trials to build on and strengthen its engagement model with its founders with the launch of a pre-funding bootcamp, being made available to founders that are ready-to-raise to improve their level of preparedness before entering a roadshow with investors.

In that latter half of the year, the Company also initiated the development of an online platform to support their network of independent venture capital syndicates and will look to expand the number of partners going forwards on a region by region basis.

Current Trading and Post-Balance Sheet Events

Trading during the current financial year hitherto has been in line with the Directors’ expectations at the beginning of the period. The Company has during the current year to date continued its core focus to expand its portfolio of founders with innovative concepts, where the Company receives either straight equity or a warrant on shares for longer-term asset appreciation, as well as building on initiatives previously put in place for diversifying regionally.

Outlook

Looking ahead, the momentum for technology companies requiring investment at the seed stage should continue, with demand for the Company’s support model, which encompasses a delivery crew to support young start-ups with their technology and digital marketing strategies, showing signs of continuing to increase.

Jeb Buckler

Chairman & CEO

STARTUP GIANTS PLC
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022

		2022	2021
	Notes	£	£

Revenue	2	320,957	623,839

Gross profit		320,957	623,839

Administrative expenses		(456,368)	(579,368)

Operating (loss)/profit	3	(135,411)	44,471

Investment revenues	6	242	-
Finance costs	7	(1,345)	(657)

(Loss)/profit before taxation		(136,514)	43,814

Income tax expense	8	-	-

(Loss)/profit and total		(136,514)	43,814
comprehensive income for the year



Earnings per share (in pence)	9
Basic		(10.94)	3.88
Diluted		(10.94)	3.88

Earnings per share from
continuing operations (in pence)
Basic		(10.94)	3.88
Diluted		(10.94)	3.88

The income statement has been prepared on the basis that all operations are continuing operations.



STARTUP GIANTS PLC
STATEMENT OF FINANCIAL POSITION
FOR THE YEAR ENDED 31 DECEMBER 2022

		2022	2021
	Notes	£	£

Non-current assets
Goodwill	10	12,084	17,084
Property, plant and equipment	11	1,445	2,147

		13,529	19,231

Current assets
Trade and other receivables	12	31,859	97,122
Current tax recoverable		3,939	14,916
Cash and cash equivalents		712,389	1,098,838

		748,187	1,210,876

Current liabilities
Trade and other payables	15	182,219	498,969
Current tax liabilities		6,280	16,407
Borrowings	14	5,000	5,000

		193,499	520,376

Net current assets		554,688	690,500

Non-current liabilities
Borrowings	14	12,083	17,083

Net assets		556,134	692,648

Equity
Called up share capital	16	152,405	152,405
Share premium account	17	960,102	960,102
Retained earnings		(556,373)	(419,859)

Total equity		556,134	692,648


The financial statements were approved by the board of directors and authorised for issue on
28 June 2023 and are signed on its behalf by:

J Buckler
Director

Company registration number 09690364

STARTUP GIANTS PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022

			Share	Share	Retained		Total
			capital	premium	earnings
				account
	Notes		£	£	£		£

Balance at 1 January 2021			140,510	769,790	(463,673)		446,627

Year ended 31 December 2021:
Profit and total comprehensive income for			-	-	43,814		43,814
the year
Transactions with owners in their capacity
as owners:
Issue of share capital	16		11,895	190,312	-		202,207

Balance at 31 December 2021			152,405	960,102	(419,859)		692,648

Year ended 31 December 2022:
Loss and total comprehensive income for			-	-	(136,514)		(136,514)
the year

Balance at 31 December 2022			152,405	960,102	(556,373)		556,134



STARTUP GIANTS PLC
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022

				2022		2021
		Notes		£		£

Cash flows from operating activities
Cash (absorbed by)/generated from operations		21		(380,755)		238,528

Interest paid				(1,345)		(657)
Income taxes refunded				850		408

Net cash (outflow)/inflow from operating
activities				(381,250)		238,279

Investing activities
Purchase of property, plant and equipment				(199)		(2,573)
Repayment of loans				(242)		(12,116)
Interest received				242		-

Net cash used in investing activities				(199)		(14,689)

Financing activities
Proceeds from issue of shares				-		202,207
Repayment of bank loans				(5,000)		(2,917)

Net cash (used in)/generated from financing				(5,000)		199,290
activities

Net (decrease)/increase in cash and cash				(386,449)		422,880
equivalents

Cash and cash equivalents at beginning of year				1,098,838		675,958

Cash and cash equivalents at end of year				712,389		1,098,838