Good Life Plus PLC - Interim Results

Strictly embargoed until 07.00, 31^st October 2024

Good Life Plus Plc / AQSE: GDLF

Good Life Plus PLC

("Good Life Plus" or the "Company")

Unaudited Interim Results for the Six Months ended 31 July 2024

Good Life Plus plc (AQSE: GDLF), a leading luxury prize draw and rewards innovator, is pleased to announce its unaudited interim results for the six months ended 31 July 2024, showing strong financial and operational progress. Significant developments post-period have further bolstered the Group's growth trajectory, including a landmark partnership and successful capital raises.

Commenting on the results, David Craven, Non-Executive Chairman, said:

"We are obviously delighted with the pace of growth and see significant scope for expansion in the UK market both in direct to consumer and our pivotal partnership programme. The results of the first half demonstrate the appeal of our product in a relatively crowded space.

"Our wider leadership team, investor base and advisory board brings deep expertise in scaling businesses and delivering shareholder value. The recent successful capital raise and significant founder ownership reinforce our strong financial foundation and investor confidence.  We are now focused on scaling aggressively, expanding our team, and developing our product to enhance further our subscribers' experience and deliver long-term growth."

Financial and Operating Highlights

·    Revenue Growth: Achieved circa. £330,000 in monthly recurring revenue (MRR), an increase of nearly 120% since the year end, driven by a scalable subscription-based model and growing market demand.

·    Subscriber Growth: The active subscriber base grew to over 37,000 by 31 July 2024 and has since exceeded 40,000, reflecting the strong appeal of our premium offering and effective customer acquisition strategies.

·  Fundraising and Investment: The Company successfully raised £2.03 million in March 2024 through a subscription, strengthening our capital base to support accelerated growth.

·    Operational Efficiency: The Group achieved reductions in churn, improvements in average revenue per user (ARPU), and enhancements in customer satisfaction, supporting sustained growth in premium subscriptions.

·   Extensive Digital Reach: Our brand now reaches over 1.1 million email subscribers and 400,000 social media followers, significantly enhancing digital engagement and market visibility.

·    Leadership Strengthened: The appointment of respected industry expert, David Craven (as Non-Executive Chairman) brings additional weight to the Board, further supporting our growth strategy and bolstering corporate governance.

Financial Results

·    Revenue: £1,687,633 for the six months ending 31 July 2024 (compared to £2,387,344 for the previous 16-month period ending 31 January 2024).

·  Operating Loss: £2,005,553 (compared to a loss of £3,129,080 for the 16 months ending 31 January 2024), reflecting investments in accelerated growth and strategic development.

·   Net Loss: £2,008,127 (compared to a net loss of £3,980,138 for the 16-month period ending 31 January 2024), indicating our investment phase as we continue building a scalable platform for long-term growth with a focus on accelerated customer acquisition.

Post-Period Developments

·     Strategic Partnership with Leading UK Mobile Network Operator: In September 2024, Good Life Plus announced a landmark partnership with a major UK mobile network operator. This partnership provides exclusive access to the operator's extensive subscriber base, enabling the Company to expand its reach to millions of potential new users and enhance brand visibility.

·     Capital Raise of £2 Million and Convertible Loan Note Conversion: In October 2024, the Company successfully raised £2 million through a placing and subscription. Additionally, £287,500 in Convertible Loan Notes were converted, strengthening our financial foundation to support aggressive customer acquisition, partnership development, and operational upgrades.

Charlie Chadd, CEO of Good Life Plus, commented:

"Our recent achievements, including strategic partnerships and media deals are critical steps in our journey to becoming a market leader in luxury prize draws. These developments allow us to reach new customers, accelerate our growth trajectory, and continue enhancing the premium experiences we offer our subscribers. With a strong capital structure and growing subscriber base, we are well-positioned to scale aggressively and bring our unique value proposition to a broader audience."

This announcement contains information that was classified as inside information prior to its disclosure, as defined under Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310 (as amended). The Directors of the Company take responsibility for this announcement.

-Ends-

For further information please visit Good Life Plus Plc or contact:

Good Life Plus Plc                                                                                                              +44 (0)7500 929157

Charlie Chadd, Chief Executive

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Good Life Plus Plc

Chairman's Statement

Overview

Good Life Plus continues to build significant momentum within the luxury prize draw and rewards sector, with a rapid growth trajectory across both subscriber base and revenue generation through the first half of FY 2024/25.

We are capitalising on a substantial market opportunity within the global lottery and rewards space-a sector currently valued at £261 billion and projected to experience consistent growth over the next seven years.  Our commitment to a freemium model has enabled low-cost subscriber acquisition while driving recurring revenue predictability, akin to the SAAS/B2C models. With superior odds, an extensive discount ecosystem, and ongoing technological enhancements, we offer a unique, high-value proposition compared to traditional lotteries.

This is proving to be popular and consequently, the first half of FY 2024/25 saw the Group deliver a record performance in revenue, with subscriber numbers increasing 73% since the year end, supporting 59% growth in revenues from the UK marketplace since the six months ending 31 January 2024.

Strong Subscriber and Revenue Growth

Revenues for the first half of the year were £1,687,633, delivering a gross profit of £1,304,033. While losses widened during the period, showing an operating loss of £2,005,553 with a net loss for the period of £2,008,127, this is a reflection of a fully funded growth phase as the business expanded rapidly during the period.

Over the past year, we have achieved remarkable membership gains, growing from 8,000 in November 2022 to over 40,000 today. This growth has been instrumental in establishing a monthly recurring revenue (MRR) of circa. £330,000 at 31 July 2024-an approximate 120% increase since the year end-underscoring both the market demand for our offering and the appeal of our premium subscription plans. The strength of our product, combined with our commitment to continuous improvement in user experience, allows us to deliver superior odds and value compared to national lotteries.

Strong Operating Model

Our commitment to operational excellence remains a cornerstone of our strategy. The team has successfully maintained high customer satisfaction, reduced churn, improved average revenue per user (ARPU), and expanded our brand reach. We now engage a robust digital community, with over 1.1 million email subscribers and 400,000 social media followers. Our unique market position, offering both luxury prizes and an extensive discount ecosystem, creates a value proposition that strongly resonates with our audience.

Strengthened Financial Position

Our financial position was bolstered by a fundraising of £2.03 million through a subscription in March 2024.  Subsequently it has been significantly strengthened through our recent £2 million capital raise and the conversion of Convertible Loan Notes, announced post period end on 1 October 2024.  Collectively these injections of fresh capital support our ambitious growth plans.

Board Changes

During the period, the Company announced my appointment as Non-Executive Chairman.  I succeeded Keith Harris.  My background and experience are directly relevant to the Company having led the successful bid as Allwyn CEO to win the Fourth National Lottery Licence against strong contenders, including the 30-year incumbent operator, Camelot.

Experienced Leadership with a Vision for Growth

Our wider leadership team, investor base and advisory board brings deep expertise in scaling businesses and delivering shareholder value. The recent successful capital raise, our public listing, and significant founder ownership all reinforce our strong financial foundation and investor confidence.  We are now focused on scaling aggressively, expanding our team, and developing our product to enhance further our subscribers' experience and deliver long-term growth.

Current Trading and Outlook

Good Life Plus is well-positioned for sustained subscriber growth as we continue to capitalise on expanding opportunities in both established and new channels. Our strategic focus remains on aggressive customer acquisition and targeted investments in team expansion, product development, and technology. These priorities are designed to drive scalable growth, enhance the premium experience for our customers, and deliver continued value for shareholders.

With a solid financial foundation and a carefully crafted growth strategy, the Board is optimistic about the Company's FY 2025/26 performance and its potential to transition from a disruptive market player to an established leader in the luxury prize draw sector. Our efforts remain centred on long-term value creation, underpinned by our unique market positioning and commitment to operational excellence.

Presentation of Results

These results cover the six months from 31 January 2024 to 31 July 2024. The comparative six month period included within the Interim Results are for the Company when it was still known as Semper Fortis Esports Plc, prior to the reverse takeover of GL Membership Limited in December 2023, and consequently do not directly relate to the comparative underlying trading of the Company's current activities. The figures included for the 16 month period to 31 January 2024 represent the Group results as disclosed in audited financial statements for the period.

David Craven

Chairman, Good Life Plus Plc

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

*This comparative six month period is for the Company when it was still known as Semper Fortis Esports Plc, prior to the reverse takeover of GL Membership Limited in December 2023, and consequently does not directly relate to the comparative underlying trading of the Company's current activities.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

*This comparative six month period is for the Company when it was still known as Semper Fortis Esports Plc, prior to the reverse takeover of GL Membership Limited in December 2023, and consequently does not directly relate to the comparative underlying trading of the Company's current activities.

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

CONSOLIDATED STATEMENT OF CASH FLOWS

*This comparative six month period is for the Company when it was still known as Semper Fortis Esports Plc, prior to the reverse takeover of GL Membership Limited in December 2023, and consequently does not directly relate to the comparative underlying trading of the Company's current activities.

NOTES TO THE INTERIM FINANCIAL STATEMENTS

1. General Information

Good Life Plus Plc (the 'Company') and its subsidiary, GL Membership Ltd, (together the "Group') is a monthly membership and daily prize draw company listed on the AQSE Exchange Growth Market as operated by Aquis Stock Exchange Ltd ("AQSE")." The Company and its subsidiary are incorporated and registered in the United Kingdom.

The Company's registered office is 6 Heddon Street, London, W1B 4BT.

2. Basis of Preparation

The consolidated interim financial statements have been prepared in accordance with UK-adopted International Accounting Standards. The interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 January 2024. The comparative period relates to the Company only figures for the 6 months ended 31 July 2023, which was before the reverse acquisition and therefore relate to Semper Fortis Esports PLC.

The interim financial information set out above does not constitute statutory accounts within the meaning of the Companies Act 2006. It has been prepared on a going concern basis in accordance with the recognition and measurement criteria of UK adopted international accounting standards.

Statutory financial statements for the year ended 31 January 2024 were approved by the Board of Directors on 26 July 2024 and delivered to the Registrar of Companies. The report of the auditors on those financial statements was unqualified with a material uncertainty in relation to the Company's ability to continue as a going concern. The condensed interim financial statements are unaudited and have not been reviewed by the Company's auditor. 

Going concern

These financial statements have been prepared on the going concern basis. Given the Group's current cash position and its demonstrated ability to raise capital, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting preparing the interim financial statements for the period ended 31 July 2024.

Notwithstanding the above, a material uncertainty exists that may cast significant doubt on the Group's ability to continue as a going concern and, therefore, that the Group may be unable to realise their assets or settle their liabilities in the ordinary course of business. As a result of their review, and despite the aforementioned material uncertainty, the Directors have confidence in the Groups forecasts and have a reasonable expectation that the Group will continue in operational existence for the going concern assessment period and have therefore used the going concern basis in preparing these consolidated financial statements.

The factors that were extant at 31 January 2024 are still relevant to this report and as such reference should be made to the going concern note and disclosures in the 2024 Annual Report and Financial Statements ("2024 Annual Report").

Risks and uncertainties

The Board continuously assesses and monitors the key risks of the business. The key risks that could affect the Company's medium term performance and the factors that mitigate those risks have not substantially changed from those set out in the Company's 2024 Annual Report and Financial Statements, a copy of which is available on the Company's website: https://investors.goodlifeplus.co.uk/investors/.  

Critical accounting estimates

The preparation of interim financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the end of the reporting period. Significant items subject to such estimates are set out in Note 4 of the Company's 2024 Annual Report and Financial Statements. The nature and amounts of such estimates have not changed significantly during the interim period.

3. Accounting Policies

Except as described below, the same accounting policies, presentation and methods of computation have been followed in these interim financial statements as were applied in the preparation of the Company's annual financial statements for the period ended 31 January 2024.

3.1 Changes in accounting policy and disclosures

(a) New and amended standards adopted by the Group and Company

The International Accounting Standards Board (IASB) issued various amendments and revisions to International Financial Reporting Standards and IFRIC interpretations. The amendments and revisions were applicable for the period ended 31 July 2024 but did not result in any material changes to the financial statements of the Group or Company.

Of the other IFRS and IFRIC amendments, none are expected to have a material effect on future Group or Company Financial Statements. 

(b) New standards, amendments and Interpretations in issue but not yet effective or not yet endorsed and not early adopted

The standards and interpretations that are issued, but not yet effective, up to the date of issuance of the condensed interim financial statements are listed below. The Group intends to adopt these standards, if applicable when they become effective.

None are expected to have a material effect on the Group or Company Financial Statements.

4. Revenue from contracts

Revenue is recognised over the period of the membership.

5. Cost of Sales

6. Administrative expenses

7. Intellectual property (IP)

The intellectual property relates to the sale and purchase agreement between Chadd Media Limited (a company with a shareholding of 60% owned by Charlie Chadd and 40% owned by Joseph Chadd) and Good Life Plus PLC.

The consideration of £840,000 was agreed for the transfer of assets from Chadd Media Limited to Good Life Plus PLC on 29 November 2023. The assets include the Business Intellectual Property Rights, the Records (including books, accounts, customer lists, designs, plans and advertising materials) the Social Media Accounts and the Domain Name.

The intellectual property assets have been considered to have a finite life of 20 years and therefore are being amortised over this period in line with IAS 36. An impairment assessment had been carried out during the period ended 31 January 2024 as part of annual review and no impairment indicators were noted. There has been no change in circumstances or additional indicators were identified which would indicate otherwise during the period.

8. Right of Use Asset

9. Trade and other payables

10. Earnings per share

As the result for the period was a loss, the basic and diluted loss per share are the same. The loss attributable to equity holders and the weighted average number of ordinary shares for the purposes of calculating diluted earnings per ordinary share are identical to those used for basic earnings per ordinary share.  

11. Reverse Acquisition

On 18 December 2023, Good Life Plus PLC acquired 100% of the share capital of GL Membership Limited. Further details of this reverse acquisition can be found in the 2024 Annual Financial Statements.

12. Events after the balance sheet date

On 2 September 2024, the Company issued 275,000 convertible loan notes of £1 each for a total of £275,000.

On 1 October 2024, the Company issued 80 million ordinary shares of £0.001 each at a price of £0.025 for a total of £2,000,000. 3 million broker warrants were also issued at £0.025 per warrant and will be exercisable at £0.025 for a period of 5 years. In addition, £287,500 of convertible loan notes were converted to 12,777,777 new ordinary shares of £0.0225 each.

13. Approval of interim financial statements

The Condensed interim financial statements were approved by the Board of Directors on 30 October 2024.

14.  Availability of this announcement

Copies of this announcement are available from Good Life + website at https://goodlifeplus.co.uk