17th Aug 2023 10:52
(Alliance News) - Fiinu PLC on Thursday said its pretax loss widened in its latest half year, and that it continues to seek additional funding so it can re-apply to restart its banking licence application.
The Camberley, England-based digital bank said its pretax loss was GBP4.4 million for the first half of 2023, compared with GBP914,095 for the year before. No revenue was reported for either period.
Fiinu's basic and diluted loss per share widened to 1.75 pence from 0.26p. Its stock was flat at 1.85p per share in London on Thursday morning
Cash at June 30 was GBP4.3 million, up from GBP2.1 million at the same time a year prior.
Meanwhile costs surged, with administrative expenses up to GBP4.4 million from GBP983,206 and Fiinu swinging to a net finance cost of GBP47,924 from income of GBP69,111.
"Given the business was operationally ready, following the successful completion of the technology build of the Plugin Overdraft, it is therefore with deep regret that we have had to scale back operations in Fiinu 2 Ltd and Fiinu Holdings Ltd," said Chief Executive Chris Sweeney.
"The current general capital, and market specific conditions, are increasingly challenging for a business at Fiinu's current stage of development."
Fiinu's Plugin Overdraft product is an unbundled overdraft solution that the customer can attach to their existing primary bank account. Fiinu completed the technology build in April.
In July, it initiated cost reductions within the Fiinu 2 and Fiinu Holdings subsidiaries, such as reducing staffing levels.
The company intends to re-apply to regulators to restart its banking licence application, but said it is still sourcing the necessary additional funding. Alternatively, Fiinu is considering changing its strategy and/or selling its technology assets to raise the funds.
In April, Fiinu applied to withdraw its banking licence with the aim of re-applying after two to three months, assuming it can secure the additional funding.
By Emma Curzon, Alliance News reporter
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