Tap Global Group Plc - Half-Year Report

Certain information contained within this Announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 ("MAR") as applied in the United Kingdom. Upon publication of this Announcement, this information is now considered to be in the public domain. 28 March 2025 Tap Global Group Plc Half-Year Report for the Six Months Ended 31 December 2024 Record H1 revenues and move into positive EBITDA Tap Global Group Plc (AQSE: TAP), the cryptocurrency app bridging the gap between traditional finance and blockchain technology, is pleased to present its results for the six months ended 31 December 2024 ("H1 25"), a period in which the Company delivered record revenues and moved into positive EBITDA. References herein to "Tap Group", the "Group" or the "Company" refer to Tap Global Group Plc. References to "Tap" or "Tap Global" refer to Tap Global Limited and/or Tap Technologies Limited which are wholly owned operating subsidiaries of Tap Global Group Plc. H1 25 Highlights · Revenues up 39% to £1.8m (H1 24: £1.3m) · First positive EBITDA of £324k (H1 24 loss: £709k) · Practically break even after tax for the first time (H1 24 loss: £995k) · Cash at 31-Dec 2024 up 57% to £890k since last financial year-end (30 June 2024: £565k) · Raised a further £1.0m after period-end (Feb 2025) including investments from new institutions and two Directors · Registered users at 31-Dec 2024 up 29% to 380k (31-Dec 2024: 294k) · Streamlined operating structure resulting in faster execution and more efficient resource allocation · Revitalised utility of XTP token with introduction of XTP Cashback on card spending · High-demand token launches to capture more trading volumes and new users · Continued product development including improved search functionality and expanded currency offerings · Secured VASP registration in Bulgaria in anticipation of upcoming MiCA regulations · Appointed Peter Wall, former CEO of Argo Blockchain Plc, as Non-Executive Chairman Trading Update for Jan-Feb-Mar 2025 Revenues in the third quarter of the current financial year (Jan-Feb-Mar 2025) are estimated to be approximately £920k, exceeding the equivalent period last year by 21%, and placing Tap Group on course to deliver its first EBITDA positive full year. With the benefit of the resources from last month's capital raise, the Company's immediate objective is to accelerate growth through the activation of new users, while reducing the business' susceptibility to cryptocurrency trading volume volatility. Peter Wall, Chairman of Tap Group, commented: "The executive team has done an incredible job in de-risking the business, developing the product and associated infrastructure, proving customer need, and fine-tuning a marketing formula. What attracts me is that they have been able to do that with limited resources in some tough conditions historically while still beating a path to cash flow positivity. With the right resources I believe we can now get bigger, faster." The Directors of the Company accept responsibility for the contents of this announcement. Enquiries: Tap Global Group Plc via Vigo Consulting Arsen Torosian, Chief Executive Officer Peterhouse Capital Limited +44 (0)20 7220 9795 (Aquis Growth Market Corporate Advisor) Tennyson Securities (Broker) +44 (0)20 7186 9030 Peter Krens Alan Howard Vigo Consulting (Investor Relations) +44 (0)20 7390 0230 Ben Simons tapglobal@vigoconsulting.com Kendall Hill Peter Jacob About Tap Global Group Plc Tap Global Group Plc ("Tap Group") bridges the gap between traditional finance and blockchain technology. It offers over 380,000 individual and business customers an innovative and fully integrated fiat payments and cryptocurrency settlement service including access to several major cryptocurrency exchanges. Through the Tap app, customers can trade up to 49 cryptocurrencies and store them directly in their customer wallet, while benefiting from proprietary AI middleware for real-time best-execution and pricing. Tap Group's European business, Tap Global Limited, was the first cryptocurrency FinTech company to be approved by Mastercard in Europe. Through the Tap card, European users can convert their cryptocurrencies to fiat and spend at more than 37 million merchant locations worldwide. Investor website: www.investor.tap.global Tap Group's operating subsidiaries Tap Global Limited serves the European customer base and is registered in Gibraltar and licensed and regulated by the Gibraltar Financial Services Commission under the DLT with licence No. 25532. Tap Americas LLC serves the US customer base and is a limited liability company organised under the laws of the state of Florida. Cryptocurrency services are provided by Zero Hash, a Chicago-based B2B2C crypto infrastructure platform. Learn more: www.withtap.com Follow us on social media: LinkedIn:https://www.linkedin.com/company/tapglobal/ X (formerly Twitter):https://twitter.com/TapGlobalPlc Tap Global Group Plc Chairman's Statement For the six month period ended 31 December 2024 ("H1 25") Introduction I am pleased to report record half-year revenues and positive EBITDA in the first half of the current financial year from 1 July - 31 December 2024, reflecting product improvements, market sentiment and refined fee calibration. The business is benefiting from a combination of strong trading coupled with lower overheads following cost optimisation initiatives implemented in the last financial year which position the Group for sustainable, profitable growth. The hard work and diligence of our team is delivering tangible results, as the business has undoubtedly emerged from the challenges of the past two years in a strong position with an attractive fintech product offering with 380,000 registered users and counting. It is not a coincidence that recent progress led to Tap Group attracting new high-quality institutional investors onto its shareholder register last month for the first time. Operations Tap Group's registered users increased by 29% from 294k at the end of H1 24 to around 380k at the end of H1 25. Registered users is an important metric for two reasons: first, because it is an indicator of consumer demand for Tap Global's innovative products and services; and second, because it represents a significant activation opportunity with the additional resources the business now has available to it. Throughout H1 25, Tap Group continued to systematically streamline its team structure, centralising decision-making and product deployment oversight under the CEO. This transformation has resulted in dramatically faster execution and more efficient resource allocation. In July 2024, the Company revitalised the utility of the XTP token with the introduction of XTP Cashback on card spending, alongside six new dynamic subscription plans. Tap Group's commitment to XTP token holders remains unwavering, evidenced by the successful reintroduction of XTP locking for UK Premium accounts in December 2024, after a year of dedicated development and regulatory navigation. This milestone demonstrates the Company's continued focus on enhancing the utility and value proposition of XTP within the Tap Group ecosystem. Tap Group has maintained its agility in the retail fintech space by strategically integrating high-demand token launches such as Hamster Kombat. This integration served as a successful test case for a potential new revenue strategy. By being among the first retail platforms to list highly anticipated token launches, Tap Group can capture significant trading volumes during peak interest periods while attracting new users who are seeking early access to these opportunities. Product development continued with enhanced in-app features including improved cryptocurrency search functionality and a new 'Markets' section. The Company also expanded its currency offerings to include CAD, JPY, AUD, and CHF. At the end of the last financial year, in June 2024, Tap Group completed its entry into the United States market, in partnership with Zero Hash LLC, and has since then been softly establishing itself with a limited product. In the medium term, with the requisite resources, having this infrastructure in place will give us access to a huge market of active cryptocurrency users. Tap Group is also evaluating opportunities to launch in other key cryptocurrency markets. Securing VASP registration in Bulgaria in December 2024 represents a strategic milestone in Tap Group's European expansion, positioning the business for compliance with the upcoming MiCA regulations. These developments, combined with the broader market momentum, including Bitcoin's strong performance, have not only driven strong revenue growth but also laid the groundwork for sustained expansion. Board Changes In November 2024, my predecessor, David Hunter, stepped down as Non-Executive Chairman of the Board to pursue a full-time CEO role elsewhere, and I joined as Non-Executive Chairman the same month. In addition to helping scale the business, my initial focus is on sharpening the Company's investment case with the goal of educating the investment community on the opportunity. To date, this has included an investor roadshow that resulted in high-quality institutions joining the share register and the online publication of insightful discussions with our Group CEO, Arsen Torosian. Financial Performance For the half-year period ended 31 December 2024, the Company achieved a record revenue of £1.80 million, representing an increase of 39% from the £1.29 million recorded in H1 24. This increase in revenues was primarily attributed to higher trading revenues on the Company's platform and the broadening of Tap Group's income streams, which enabled the Company to deliver a positive EBITDA for the period. The Company increased its gross profit by 48% from £887k in H1 24 to £1.31 million in H1 25. The rationalisation of the Company's operational base saw its operating expenses fall by some 24% from £1.92 million in H1 24 to £1.45 million in H1 25. The Company's cash position at 31 December 2024 was £890k, up 57% from the end of the last financial year, and this was bolstered further by the below -referenced raise of £1.0 million in gross proceeds from the February 2025 placing. The loss before tax was marginal at just £8k, compared to a loss of £995k in the equivalent period last year, as the combined benefits of strategic cost initiatives and strong trading took effect. Tap Group's H1 25 gross profit margin of 73% demonstrates significant improvement when compared to H1 24 (69%), and we believe that we are now much better placed to be able to scale the business profitably. Post-Period End In February 2025, Tap Group raised £1.0 million by way of a placing which was supported by new and high-profile institutional investors, alongside me and our CEO who both invested in the business personally. Having reached cash flow positivity, we saw an opportunity to utilise limited additional capital to scale faster through accelerated investment in marketing and customer acquisition, including my earlier-mentioned activation of a substantial database of registered users. We appreciated the support of investors who also identified the opportunity. Outlook The executive team has done an incredible job in de-risking the business, developing the product and associated infrastructure, proving customer need, and fine-tuning a marketing formula. What attracts me is that they have been able to do that with limited resources in some tough conditions historically while still beating a path to cash flow positivity. With the right resources I believe we can now get bigger, faster. Forward, together. Peter Wall Non-Executive Chairman Tap Group 28 March 2025 Tap Global Group Plc Interim Consolidated Statement of Comprehensive Income For the six-month period ended 31 December 2024 Dec-24 Jun-24 Dec-23 6 months 12 months 6 months unaudited audited unaudited £ £ £ Notes Revenue 1,797,189 2,646,574 1,291,056 Cost of sales (482,851) (1,083,965) (404,418) Gross profit 1,314,338 1,562,609 886,638 Operating 1 (1,446,580) (4,070,783) (1,915,706) expenses Impairment - (15,862,070) - loss on goodwill Exchange (43,849) (19,390) (1,318) difference Gain on - 3,885 - disposal of investment Fair value - - 6,650 adjustments Gain on sale 8 167,477 211,824 28,261 of cryptoassets Loss before (8,614) (18,173,925) (995,475) income tax Tax on loss - (15,629) - Total (8,614) (18,189,554) (995,475) comprehensive loss for the period Group operations are classed as continuing. The exemption under section 408 of the Companies Act 2006 from presenting the Parent Company's income statement has been taken. The Company's loss for the period was £104,083 (2023: £383,737). The notes form part of these interim consolidated financial statements. Tap Global Group Plc Interim Consolidated Statement of Financial Position As at 31 December 2024 Dec-24 Jun-24 Dec-23 unaudited audited unaudited £ £ £ ASSETS Note Non-current assets Tangible 3 52,105 70,789 109,303 assets, including right-of-use assets Investments 5 1,987 1,987 - Intangible 8 713,663 747,893 586,598 assets - cryptoassets Intangible 1,351,142 1,309,844 1,331,570 assets - software and website domains Goodwill 5,988,877 5,988,877 21,850,947 Deferred tax - - 12,517 asset Total non 8,107,774 8,119,390 23,890,935 -current assets Current assets Cash and cash 889,701 565,281 1,892,267 equivalents Trade and 6 199,338 378,585 234,033 other receivables Total current 1,089,039 943,866 2,126,300 assets Total assets 9,196,813 9,063,256 26,017,235 LIABILITIES AND EQUITY Non-current liabilities Lease 4 13,276 26,328 42,512 liability Director's 900,109 900,109 - loan Total non 913,385 926,437 42,512 -current liabilities Current liabilities Trade and 7 510,270 383,008 296,195 other payables Accruals 258,340 226,339 287,115 Director's - - 669,451 current account Lease 4 30,144 34,184 34,595 liability Total current 798,754 643,531 1,287,356 liabilities Equity Capital and reserves Called up 2,223,466 2,223,466 2,223,466 share capital Share premium 27,685,458 27,685,458 27,685,458 Option & 374,898 374,898 374,898 warrant reserve Profit and (22,799,148) (22,790,534) (5,596,455) loss account Equity 7,484,674 7,493,288 24,687,367 shareholders' funds Total 9,196,813 9,063,256 26,017,235 liabilities and equity The notes form part of these interim consolidated financial statements. Tap Global Group Plc Interim Consolidated Statement of Changes in Equity For the six-month period ended 31 December 2024 Called up share capital Share premium Option & warrant reserve Profit and Total loss account £ £ £ £ £ As at 1 July 2,223,466 27,685,458 374,898 (4,600,980) 25,682,842 2023 Total                                 (18,189,554) (18,189,554) comprehensive -   - - loss for the year As at 30 June 2,223,466 27,685,458 374,898 (22,790,534) 7,493,288 2024 As at 1 July 2,223,466 27,685,458 374,898 (22,790,534) 7,493,288 2024 Total                                 (8,614) (8,614) comprehensive -   - - loss for the period As at 31 2,223,466 27,685,458 374,898 (22,799,148) 7,484,674 December 2024 The notes form part of these interim consolidated financial statements. Tap Global Group Plc Interim Consolidated Statement of Cash Flows For the six-month period ended 31 December 2024 Dec-24 Jun-24 Dec-23 unaudited audited unaudited £ £ £ Cash flow from operating activities Loss after taxation for (8,614) (18,189,554) (995,475) the period Adjustment for: Depreciation 18,684 37,564 19,045 Amortisation 328,102 654,230 266,060 Finance costs 908 2,811 1,406 Fair value change of - - (6,650) investment Gain on disposal of - (3,885) - investment Gain on sale of (167,477) (211,824) (28,261) cryptoassets Impairment of goodwill - 15,862,070 - Loss on derecognition of - 12,517 - deferred tax assets Change in: Trade and other 179,247 (263,062) (118,510) receivables Trade and other payables 159,263 395,413 138,719 Cash generated from 510,113 (1,703,720) (723,666) operations Tax paid - -                        - Net cash used in 510,113 (1,703,720) (723,666) operating activities Cash flow from investing activities Proceeds from 642,363 3,506,694 1,320,383 cryptoassets Additions to (440,655) (2,821,312) (657,271) cryptoassets Purchase of intangible (369,401) (729,685) (363,241) assets Purchase of tangible - (4,481) (1,313) assets Disposals of tangible - 18,410                       - assets - investment Net cash used in (167,693) (30,374) 298,558 investing activities Cash flow from financing activities Repayment of lease (18,000) (36,000) (18,000) liabilities Net cash used in (18,000) (36,000) (18,000) financing activities Increase/(decrease) in 324,420 (1,770,094) (443,108) cash and cash equivalents Cash and cash 565,281 2,335,375 2,335,375 equivalents at beginning of period Cash and cash 889,701 565,281 1,892,267 equivalents at end of period The notes form part of these interim consolidated financial statements. Notes to the Interim Consolidated Financial Statements For the six-month period ended 31 December 2024 Financial Information The financial information set out in these interim consolidated financial statements does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The Group's consolidated statutory financial statements for the year ended 30 June 2024 have been filed with the Companies House. The auditor's report on those financial statements was unqualified and did not contain a statement under Section 498(2) of the Companies Act 2006. These interim results have not been audited, nor have they been reviewed by the Company's auditors under ISRE 2410 of the Auditing Practices Board. These interim consolidated financial statements are for the six-month period ended 31 December 2024. They have been prepared following the recognition and measurement principles of International Financial Reporting Standards (IFRS). They do not include all the information required for full annual financial statements and should be read in conjunction with the financial statements for the period ended 30 June 2024. Going concern The directors, having made appropriate enquiries, consider that adequate resources exist and continued support of the directors is forthcoming for the Company to continue in operational existence for the foreseeable future, therefore, it is appropriate to adopt the going concern basis in preparing these interim financial statements for the period ended 31 December 2024. 1. Operating expenses Dec-24 Jun-24 Dec-23 £ £ £ Salaries 391,806 1,062,702 498,698 Legal and professional fees 30,097 593,021 485,292 Marketing and communications 69,211 505,214 347,439 IT Costs 187,709 384,053 161,659 Depreciation and amortisation 330,901 660,018 265,598 Other operating expenses 436,856 865,775 157,020 Total 1,446,580 4,070,783 1,915,706 2. Earnings per share The calculation of earnings per share is based on the loss attributable to shareholders divided by the weighted average number of ordinary shares in issue, being 693,409,624 during the period. This results in a loss per share of £0.000012 (2023: £0.0014). 3. Tangible assets - right-of-use assets Right-of-use Computer Fixtures & Total asset equipment Fittings Cost £ £ £ £ Balance as at 30 June 2024 190,650 27,335 5,489 223,474 Additions -  - - - Balance as at 31 December 2024 190,650 27,335 5,489 223,474 Depreciation Balance as at 30 June 2024 135,044 15,024 2,617 152,685 Charge for the period 15,888 2,386 410 18,684 Balance as at 31 December 2024 150,932 17,410 3,027 171,369 Net book value At 31 December 2024 39,718 9,925 2,462 52,105 At 30 June 2024 55,606 12,311 2,872 70,789 4. Lease liability Dec-24 Jun-24 Dec-23 £ £ £ Opening balance 60,512 77,107 93,701 Interest expense 908 1,405 1,406 Payments (18,000) (18,000) (18,000) At the end of the year 43,420 60,512 77,107 Current 30,144 34,184 34,595 Non-current 13,276 26,328 42,512 5. Tangible assets - investments Dec-24 Jun-24 Dec-23 £ £ £ Opening balance 1,987 23,162 16,512 Disposals - (21,175) - Revaluations - - 6,650 Total 1,987 1,987 23,162 6. Trade and other receivables Dec-24 Jun-24 Dec-23 £ £ £ Trade receivables 14,019 - 13,700 Prepayments 166,536 219,002 145,955 Other receivables 18,783 159,583 74,378 Total 199,338 378,585 234,033 7. Trade and other payables Dec-24 Jun-24 Dec-23 £ £ £ Trade payables 466,122 338,270 283,664 Other payables 44,148 44,738 12,531 Total 510,270 383,008 296,195 8. Intangible assets - crypotassets held for investment Dec-24 Jun-24 Dec-23 £ £ £ Opening balance 747,894 1,221,451 1,221,451 Additions 440,655 2,821,312 657,271 Disposals (642,363) (3,506,694) (1,320,385) Gain on sale of cryptoassets 167,477 211,824 28,261 Total 713,663 747,893      586,598 This information was brought to you by Cision http://news.cision.com

Tap Global Group Plc