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:
If you have any questions on the accounts, no need to wait until the AGM - ask away!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.
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.
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.