Strategic Report
The Company operates in the fintech and alternative investment sector. The principal activities are the development and operation of online investment platforms and other software related products that facilitate investment into alternative asset classes.
The Company's activities are regulated by the Financial Conduct Authority.
The Company's revenues are generated through a combination of software development fees, licence fees and one off fees paid by businesses that raise investment via the Company’s online investment platforms.
GCV has developed and launched “QUVA” a Software-as-a-Service (SaaS) platform for the Alternative Investment sector. QUVA is a highly customisable, highly configurable software solution built for alternative asset managers and investment managers. QUVA is now generating sales revenue from a range of clients across the globe. The Company will continue to focus on the development and roll-out of QUVA in the coming year as this will form a core part of the Company's growth strategy moving forward.
Results and performance
The results of the Company for the year, as set out on page 5, show a 31% drop in revenue to £575,248 (2020: £830,312) and a loss for the year of -£3,469 (2020: £34,515). The shareholders' funds of the Company total £1,812,967 (2020: £1,369,781) up 32%.
The Company is in its growth phase and the directors consider the results in line with their expectations given the impact of the CV19 pandemic and the revised business plan.
The performance of the Company during 2021 has been encouraging given the impact of CV19 on the UK economy, with online investment platforms achieving record levels of investment and fundraising activity.
Costs have been managed in the business to mitigate the impact of CV19. The Company has continued its investment in research and development activities creating valuable intellectual property and deepening the technology in the QUVA software as a service platform.
The directors consider 2021 to be a success demonstrated by the relationship between (fundraising activity and the bottom line result for the year) whilst revenues decreased, the bottom line was near breakeven (£3,469) compared to 2020 (£34,515).
Business environment
Online investment in private markets/alternatives as an asset class is growing. The sector continues to receive increasing attention and support from the media, public, and government. Whilst there is competition, the Company is confident that its commitment to developing market-led services and product offerings, will mean it will develop a sustainable business model in an attractive growth market.
Analysis of key performance indicators
The Board monitors the progress of the Group by reference to the following KPls:
Revenues - 2021 £575,248, 2020 £830,312
Profit/Loss for the year - 2021 (£3,439), 2020 (£34,515)
Principal risks and uncertainties
The principal risks and uncertainties faced by the Company include: regulatory change, cybersecurity, financial fraud, the performance of the successfully funded companies and loss of reputation. Risk management is addressed through a framework of policies, procedures and other internal controls. Regulatory compliance and the maintenance of high ethical standards are priorities for the Company. The Company has managed to navigate the challenges of the CV19 pandemic and has maintained a business-as-usual operation throughout the pandemic period with no detrimental impact on operations/service. Indeed, 2021 was the Company's best year in terms of fundraising for alternative investments.
The Company is regulated and based in the United Kingdom. A sensitivity analysis has been performed to assess the impact on the Company's financial position in the event of worsening economic scenarios as the UK emerges from the CV19 pandemic, and this will be kept under review.