2015 Accounts and Notice of AGM

richard@imutual
Posts: 4786
Joined: Wed Jun 23, 2010 10:19 am
Sharing: 3stars.png
Has thanked: 1903 times
Been thanked: 4405 times
Contact:

2015 Accounts and Notice of AGM

Post by richard@imutual » Thu Dec 10, 2015 7:47 am

Notice is hereby given that the Annual General Meeting of imutual PLC will be held on 30th December 2015 8pm via an online chat facility at http://www.imutual.co.uk/webcast

The business to be conducted at the meeting will be to review the audited accounts for the year to 30 June 2015 and to vote on resolutions, including the re-election of directors

As in previous years, the AGM will be conducted "virtually" (we will utilise an online "chat" facility), 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:
REVIEW OF BUSINESS

The year under review was the company's fifth 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. During the year under review, imutual:
- Maintained a highly reliable cashback service across over 3000 merchants.
- Integrated feeds of thousands of products from several Daily Deals sites
- Launched our unique "Cashback guarantee" to cement our growing reputation as the UK's most trustworthy cashback site
- Won the "Commended" award in the "Best Cashback Website" category of the Consumer Moneyfacts Awards for the second year running
- Launched the Cashback Investment club, allowing members to drip-feed their cashback earnings into stockmarket investments

During the year, our revenues were down 9.5% at £143,411. However, by careful management of our retailer offers (including the addition of non-cashback advertising) we achieved a slightly increased gross profit of £35,864.

The directors reduced their combined remuneration to just £8,250, resulting in total administrative expenses of only £31,236 (down from £59,830). By way of comparison, the combined expenses of the two largest UK cashback websites are in the region of £13m per year. At some point, the Directors will need to normalise their remuneration but remain committed to ensuring the financial stability of the company. Uniquely amongst cashback websites, your directors continue to protect members cashback balances courtesy of personal guarantees.

The accounts show an operating profit of £4,628 compared with a loss £25,149 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. However, this modest profit helps to strengthen the company's balance sheet.

We attracted a further 1085 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 we will continue to support, encourage and reward members who help to generate positive publicity for imutual.

Financial position

The company reported a profit after tax of £3,762 and the closing reserves were -£32,715. The company has reported a negative net asset position throughout its five years of operation, and 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.

Future plans

We will continue to make incremental improvements to our cashback service, extending the range of cashback offers and consolidating unique elements such as the Cashback Guarantee and Investment Club. Given the limited resources available to the company, there are unlikely to be any significant product developments during the next financial period. However, we will continue to encourage viral promotion of imutual in order to generate increased revenues. These in turn can be used to invest further in the site's development in future years.
If you have any questions on the accounts, no need to wait until the AGM - ask away! :thumbup:

pabenny
Posts: 1624
Joined: Tue Jun 29, 2010 5:21 pm
Has thanked: 538 times
Been thanked: 1715 times
Contact:

Re: 2015 Accounts and Notice of AGM

Post by pabenny » Thu Dec 10, 2015 7:57 am

On the accounts:

Trade debtors - which I assume are mostly (entirely?) commission due from affiliate networks - £30k
Trade creditors - which must be mostly cashback due to members - £69k

That looks like the cashback allocated to members is greater than the income received? What have I missed?

cccashbacklover
Posts: 1800
Joined: Mon Jul 05, 2010 9:55 pm
Has thanked: 1143 times
Been thanked: 1290 times
Contact:

Re: 2015 Accounts and Notice of AGM

Post by cccashbacklover » Thu Dec 10, 2015 8:02 am

richard@imutual wrote: and consolidating unique elements such as the Cashback Guarantee and Investment Club.:
https://www.google.co.uk/search?q=conso ... zjU9GWr-AD

Wondering if this means intention that only those who are in the Investment Club will qualify for Cashback Guarantee at some point in the future :?:
There are those who agree with and those who are convinced to agree with and I fall into neither of those categories ....

richard@imutual
Posts: 4786
Joined: Wed Jun 23, 2010 10:19 am
Sharing: 3stars.png
Has thanked: 1903 times
Been thanked: 4405 times
Contact:

Re: 2015 Accounts and Notice of AGM

Post by richard@imutual » Thu Dec 10, 2015 8:28 am

No, perhaps I didn't phrase that very well. I meant that we should support, refine and promote these features - having done the hard work of getting them launched :)
pabenny wrote:Trade debtors - which I assume are mostly (entirely?) commission due from affiliate networks - £30k
Trade creditors - which must be mostly cashback due to members - £69k
Correct. The difference is largely due to the fact that we get paid faster than we pay out to members (due to those who don't use our auto-redeem feature). That's very common with this business model, though it does create a potential concern that, if all members requested their o/s balances at once, the company would have a cash flow issue. We (uniquely) resolve that by providing a Directors Guarantee to protect cashback balances.

cccashbacklover
Posts: 1800
Joined: Mon Jul 05, 2010 9:55 pm
Has thanked: 1143 times
Been thanked: 1290 times
Contact:

Re: 2015 Accounts and Notice of AGM

Post by cccashbacklover » Thu Dec 10, 2015 8:38 am

Financial Year is to 30 June

Cashback Guarantee - Started approx October 2014, didnt seem to get any/much third party site mention/ promotion until approx January 2015 so taking into account lag factor, transaction(s) done to ........ cost of this should be very much higher for the current Financial Year - 2016

Any estimates of this - Cost ( Cash paid out that wasnt/isnt received/unlikely to be received) of Cashback Guarantee - Financial Year 2016, Richard please based on Cashback G paid out/averaged out on a monthly basis since 1 July 2015 x 12
There are those who agree with and those who are convinced to agree with and I fall into neither of those categories ....

richard@imutual
Posts: 4786
Joined: Wed Jun 23, 2010 10:19 am
Sharing: 3stars.png
Has thanked: 1903 times
Been thanked: 4405 times
Contact:

Re: 2015 Accounts and Notice of AGM

Post by richard@imutual » Thu Dec 10, 2015 11:58 am

I don't have exact figures to hand, but I think the extra cost so far is negligible to be honest. Mainly because the Cashback Guarantee was just formalising a policy that we were tending to follow anyway - i.e. awarding claims on appeal when the merchant didn't pay us, unless we had good reason not to

AAAlphaThunder
Posts: 25183
Joined: Tue Sep 14, 2010 8:23 pm
Has thanked: 214 times
Been thanked: 3693 times
Contact:

Re: 2015 Accounts and Notice of AGM

Post by AAAlphaThunder » Thu Dec 10, 2015 12:02 pm

I do feel that having our AGM so close to Christmas is just the wrong time?
[Secretary] imutual Cashback Investment Club

pabenny
Posts: 1624
Joined: Tue Jun 29, 2010 5:21 pm
Has thanked: 538 times
Been thanked: 1715 times
Contact:

Re: 2015 Accounts and Notice of AGM

Post by pabenny » Thu Dec 10, 2015 3:26 pm

Thanks for clarifying on the debtors/creditors. I am surprised that payouts are made before money is received - I assumed the long period between click and award was to allow for this.
Thanked by: blythburgh

richard@imutual
Posts: 4786
Joined: Wed Jun 23, 2010 10:19 am
Sharing: 3stars.png
Has thanked: 1903 times
Been thanked: 4405 times
Contact:

Re: 2015 Accounts and Notice of AGM

Post by richard@imutual » Thu Dec 10, 2015 3:49 pm

pabenny wrote:I am surprised that payouts are made before money is received
It's the other way around.
Thanked by: blythburgh

pabenny
Posts: 1624
Joined: Tue Jun 29, 2010 5:21 pm
Has thanked: 538 times
Been thanked: 1715 times
Contact:

Re: 2015 Accounts and Notice of AGM

Post by pabenny » Fri Dec 11, 2015 10:01 am

richard@imutual wrote:
pabenny wrote:I am surprised that payouts are made before money is received
It's the other way around.
Sorry - misread your response.
Thanked by: blythburgh

Locked

Who is online

Users browsing this forum: No registered users and 3 guests