ITV Announces Investment in Resi

RNS Number : 5019R

ITV PLC

01 March 2023

 

ITV Announces Investment in Resi

London, 01/03/2023

ITV today announces that it is adding architectural tech company Resi to its Media for Equity portfolio in its first investment of 2023.

As part of ITV Adventures Invest, its Media for Equity investment fund, ITV has agreed to subscribe for £1 million convertible loan notes in Resi Design Limited, with the option for an additional two tranches of £1 million each, in return for advertising inventory across ITV's Channels and ITVX.

Resi is an architectural tech company, on a mission to change, democratise and have a sustainable impact on the UK residential home development market, and joins ITV's diverse portfolio of successful Media for Equity investments including location app what3words, online menswear brand Spoke, wellness brand Feel and Europe's biggest new car buying marketplace Carwow.

ITV's investment will bring Resi to millions of viewers, launching the brand on TV for the first time.

Sheena Amin, Director of ITV AdVentures Invest, said "It's an exciting time for ITV AdVentures as we announce our first media for equity investment of the year. I am also proud to be backing our first all female founder team. Alex and Jules are serial entrepreneurs, with a proven track record of building, scaling and exiting online marketplaces. I have been thoroughly impressed by their passion and dedication to innovating and digitising the residential architectural market. Resi solves so many pain points for home renovators and architects alike, and I look forward to helping the Company become a household name through the power of ITV. "

Alex Depledge, Founder and CEO of Resi, said: "ITV offers an unparalleled opportunity to reach millions of households right across the UK. Through a combination of both the scale of linear TV channels and a growing digital audience with ITVX, ITV enables Resi to speak directly to the everyday homeowner. Homeowners who are looking to improve their property and reduce their energy costs but are not sure where to start or who to trust."

Resi is unique in assisting with the architectural design and planning of a project, but also the financial aspects and the build via its connect service. It has quickly established itself as the largest residential architect in the UK - undertaking more projects than any other residential architecture practice (nearly 6,000 to date) and has a market-leading 96% planning approval rate.

Launched in 2021, ITV AdVentures Invest is a Media for Equity programme which sees ITV take minority stakes in early stage digital and direct-to-consumer businesses, in return for advertising inventory across ITV's range of market-leading channels and ITVX. The initiative represents an innovative opportunity for consumer businesses seeking to build scale through TV advertising, alongside a strategic media partner. In turn, ITV benefits from a share in the financial returns of the media investment and strategic insights related to direct-to-consumer businesses.

NOTES:

1.  The convertible loan will be held at its fair value on ITV's balance sheet and upon conversion, the investment will not be consolidated.

2.  Each tranche of the loan notes will become convertible at the time of future qualifying financing rounds, on a change of control or at the latest backstop date of 31 December 2023. The conversion price for each tranche will be calculated at a discount to the company valuation at the time of any future financing round. If the conversion takes place at the backstop date then the conversion price will be set at a predetermined price.

3.  In the unaudited accounts of Resi Design Limited for the year ended 30 November 2021, reported gross assets were £3.0m and the net loss was £2.7m. The Company is based in Brixton, London and has 88 employees.

4.  This disclosure is being made in accordance with listing rule 10.4.1 as the parties have agreed to certain customary minority rights and obligations upon conversion of the loan notes, including, but not limited to drag obligations.

For further enquiries please contact:

Investor Relations

Pippa Foulds [phone]

Sarah Comfort [phone]

Media Relations

Paul Moore [phone]

 

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