The business to be conducted at the meeting will be to review the audited accounts for the year to 30 June 2018 and to vote on resolutions, including the re-election of directors
As in previous years, the AGM will be conducted "virtually", and you are encouraged to submit your vote using this proxy form. You are welcome to participate in the webcast and ask any questions live to the Chairman i.e. me Although of course you can ask questions at any time during the year using our forum
General guidance with regard to our AGMs can be found here
Below is my "Review of business" which is also included in the accounts:
If you have any questions on the accounts, no need to wait until the AGM - ask away!The directors present their strategic report for the year ended 30 June 2018. The year under review was the company's eighth year of operation. We made continuous improvements to our cashback service, with a dual aim of generating the maximum amount of cashback for members whilst also establishing a reputation as the most reliable and trustworthy cashback website.
REVIEW OF BUSINESS
During the year, our revenues increased by 55% to £229,791. Total administrative expenses were only £52,463. By way of comparison, the combined expenses of the two largest UK cashback websites are in the region of £13m per year. The accounts show a profit after tax of £36,210 compared with a loss of £2,842 the previous year.
imutual is different from other companies, in that it seeks to maximise the benefits to members rather than the profits for its shareholders. In that respect, the profit margin achieved was higher than we would normally aim for. Revenues were boosted by a number of one-off campaigns which have since either reduced or ended, so we would not expect to replicate a similar profit next year. That said, the surplus gives a welcome boost to imutual’s balance sheet and gives us some financial strength with which to expand in the future.
We attracted a further 734 members to the website during the year. imutual's approach to recruitment has been to rely on word-of-mouth recommendation rather than spend members' funds on advertising. Increasing the size of our membership is vital to the continued growth of your company, and in order for our business model to succeed it is essential that our member shareholders take every opportunity to promote their company and recommend its service to friends, family and colleagues. We will continue to support, encourage and reward members who help to generate positive publicity for imutual, and are always open to ideas and initiatives that our members might like to suggest.
PRINCIPAL RISKS AND UNCERTAINTIES
The directors are aware of their responsibilities to review and manage any perceived risks to the business. Our analysis of current areas of risk for the company is as follows:
imutual's revenues are spread across several hundred different merchants, and each merchant relationship is managed through one of around twenty third-party affiliate networks. The company takes care to ensure that it does not become over-reliant on revenue from a single source and takes active steps to manage credit risk.
The company operates standard marketing agreements with affiliate networks, in an industry with which the directors have considerable experience. The company has taken expert advice from several sources with regards to the share offer, and will continue to review its legal framework to ensure that the imutual business model complies with the UK's regulatory environment.
In general, website members are only paid once imutual receives payment from the merchant for the associated transactions. In addition, the company has minimal overheads to maintain and strives to keep sufficient cash resources to meet any future expenses.
The company reported a profit after tax of £36,210 and the closing reserves were £19,727. Members should note that the directors have given a written undertaking to provide ongoing financial support for the company. Additionally, cashback balances (which represent the overwhelming proportion of company creditors) are explicitly protected by a Directors Guarantee.
PLANS FOR FUTURE PERIODS
In October 2018, Director and CTO Richard Yendall resumed work for the company on a full-time basis and recently completed a major software upgrade and server migration. With Richard’s assistance, the company is well-placed to accelerate both technical and commercial developments during 2019.
The Board wishes to thank all customer shareholders for their ongoing loyalty and support. We look forward to working with them next year to help our unique company to grow and achieve its full potential.