2020 accounts and notice of AGM

[kevinchess1]

Notice is hereby given that the Annual General Meeting of imutual PLC will be held on 8th April 2021 7.30pm via an online Webcast at https://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 2020 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:

REVIEW OF BUSINESS
During the year, our revenues were £87,323 compared with £191,211 the previous year. Total administrative expenses were £57,098. The accounts show a loss after tax of £4,785 compared with a profit of £45,521 the previous year.

In recent years, over 90% of the company's net revenues have been generated from travel-related offers. Some of the most lucrative deals had disappeared even before Coronavirus had hit the travel sector. This explains the fall in revenue, and and even more significant drop is inevitable in the current financial year. In the short term, this will severely limit the extent to which we can develop new features and offers on the site.

On the plus side, the company is able to operate on very low overheads and last year's conversion from PLC to private company status will help in this regard.

FINANCIAL POSITION
The company reported a loss after tax of £4,785 and the closing reserves were £60,475. 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
Due to the severe impact of Covid-19 on our main sources of revenue, we will focus on day-to-day operations in the short term and there are unlikely to be any significant new features or initiatives. However, the company is well-placed to bounce back once market conditions return to normal.

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.

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

[pabenny]

Can you please give us some idea of current year trading.

The period covered by these accounts is to June 2020. Well over half of that is pre-covid, with travel-related clicks still available. That suggests income in the current year may halve or worse, which in turn implies much bigger losses.

[kevinchess1]

That suggests income in the current year may halve or worse, which in turn implies much bigger losses.

Yes, hence my comment in the review of business...

... and an even more significant drop is inevitable in the current financial year...

Our turnover from merchants is down to around £2k per month and although we're continuing to reduce admin costs, there will inevitably be a material loss for the current financial year.

Salaries are the biggest element of costs and ultimately, Sue and I can reduce those even further as necessary. Though that would inevitably limit the time we can spend maintaining the site.

Long term, I'm comfortable that we can "tick over" until conditions improve and we can get new, profitable offers to help improve the financial performance. And your cashback remains protected by the Directors Guarantee so certainly no need to worry on that front

[pabenny]

Turnover from merchants £24,000 a year. Assuming payout rates remain at about 50%, that's £12,000 a year of margin and >£50k of overhead.

It give me no pleasure to say this: imutual is in a downward spiral that is worsening.

As noted, overhead (meaning salaries) can be reduced somewhat, which in turn leaves even less resource for site maintenance, let alone business development. It's a tribute to the site architecture that it seems to run with minimal intervention.

Yes, travel daily clicks may return - but that may be too late.

Ultimately, this is Richard's show and he can do as he pleases. But I'm sad that imutual has come to this, despite the efforts of many (notably Boro Boy) with suggestions to increase revenue and those who mis-spell in the forums.

[Sarah]

His proposal was to spend the reserves on radio advertising, wasn't it?

I can only imagine that hastening the end of imutual.

[pabenny]

True, that one wasn't one of his better ideas.

[blythburgh]

I miss Boro Boy and his comments which could be thought provoking or just plain anger making.

I would say all sites are in far worse financial state due to lack of recurring free clicks.

[Richard Frost]

I would say all sites are in far worse financial state due to lack of recurring free clicks.

Top Cashback do not seem to be much the worse for wear, they are managing very nicely.

[pabenny]

The most recent TCB accounts at Companies House don't cover trading during lockdown but they do say that they haven't needed to furlough any staff and claim the government subsidy. That suggests a business in good financial health.

[Chadwick]

I would say all sites are in far worse financial state due to lack of recurring free clicks.

But balanced by more lucrative online shopping clicks perhaps?