DJ Samarkand Group plc: FY21 Preliminary Unaudited Results
Samarkand Group plc (SMK)
Samarkand Group plc: FY21 Preliminary Unaudited Results
29-Jul-2021 / 07:00 GMT/BST
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29 July 2021
Samarkand Group plc
("Samarkand", the "Company" or together with its subsidiaries the "Group")
FY21 Preliminary Unaudited Results
Samarkand Group plc, the cross-border eCommerce technology solution provider, is pleased to announce its preliminary
unaudited results for the year ended 31 March 2021 ("FY21").
FY21 Financial highlights:
- Listed on the Apex segment of the AQSE Growth Market raising GBP17m
- Revenue increased significantly by 201% to GBP20.6m (2020: GBP6.8m)
- Like for like revenues increased 116% to GBP14.8m (2020: GBP6.8m) excluding the exceptional revenues of GBP5.8m
- Nomad Technology revenue increased 317% to GBP6.4m (2020: GBP1.5m)
- Brand Ownership revenues increased 66% to GBP3.5m (2020: GBP2.1m)
- Distribution revenues increased 51% to GBP4.8m (2020: GBP3.2m)
- Gross margin, excluding exceptional revenue, improved from 48% to 62% reflecting a shift to greater technology and
direct-to-consumer revenues
- EBITDA profit increased to GBP1.1m* (2020: loss GBP0.8m)
- Adjusted EBITDA loss improved 50% to GBP0.4** (2020: loss GBP0.8m)
* after deducting GBP0.5m in listing fees and share based payment charge
** adjusted EBITDA is EBITDA adjusted to exclude the profit generated from exceptional revenues, listing fees and share
based payment charge.
FY21 Operational highlights:
- Orders processed for consumers in China increased 107% to 122k (2020: 59k)
- Number of product lines processed on the Nomad platform in 2021 was 2,111 (2020: 381)
- Significant investment in the Group's proprietary technology platform, Nomad continued with GBP0.6m (2020: GBP0.4m) in
capitalised development costs
- Nomad Checkout enterprise launched in November 2020 with c. GBP1m GMV processed on the platform on behalf of UK
brands and retailers
Post period end highlights:
- GBP3.1m net investment received from our strategic partner SF Express
- Acquired Zita West Products Limited and majority interest in Babawest Ltd
- Established Samarkand Global (Japan) KK based in Tokyo
- Nomad Checkout beta launched on 4 SME brands
David Hampstead, Chief Executive Officer of Samarkand Group, commented: "It has been an exceptional year for Samarkand
Group plc and I am extremely proud to be presenting the Group's maiden set of results as a listed Company. The ability
with which the Company has progressed during the period in the face of the challenges posed by the pandemic is
testament to the strength of our team and the value of our offering. I would like to take this opportunity to thank all
our staff for their continued hard work.
The funds raised from our IPO provides Samarkand with the necessary capital to move to the next stage of our expansion
and continued execution of our growth strategy. The use of such funds to acquire Zita West Products and a majority
interest in Babawest Ltd underlines the ambition of the Group to move quickly in its progression. We continue to assess
further opportunities for acquisitive growth.
Chinese eCommerce is only set to grow in significance moving forwards and our offering provides the optimal route for
Western brands to penetrate the notoriously difficult Chinese market. The future of the Company is extremely bright and
I am excited to continue delivering on our stated strategy in the coming months."
For more information, please contact:
Samarkand Group plc Via Alma PR
David Hampstead, Chief Executive Officer
http://samarkand.global/
Eva Hang, Chief Financial Officer
VSA Capital - AQSE Corporate Adviser and Broker +44(0)20 3005 5000
Andrew Raca, James Deathe, Pascal Wiese (Corporate Finance)
IPO@vsacapital.com
Andrew Monk (Corporate Broking)
Alma PR +44(0)20 3405 0213
Josh Royston
Robyn Fisher samarkand@almapr.co.uk
Joe Pederzolli
Notes to Editors
Samarkand is a cross-border eCommerce technology and retail group focusing on connecting Western Brands with China, the world's largest eCommerce market. The Group has developed a proprietary software platform, the Nomad platform, which is integrated across all necessary touch-points required for eCommerce in China including eCommerce platforms, payments, logistics, social media and customs. The Nomad platform is the foundation on which the Group's Nomad technology and service solutions are built. The core products include Nomad Checkout, Nomad Storefront, Nomad Commerce and Nomad Distribution.
The Company's current customer base comprises leading European brands such as 111SKIN, Shay & Blue, Omorovicza, ICONIC London, Philip Kingsley, Temple Spa and Planet Organic. Samarkand has also successfully grown its own brand, Probio7, acquired in December 2017 and recently announced the acquisition of Zita West Products and Babawest.
Founded in 2016, Samarkand is headquartered in London, UK with offices in Shanghai and Tokyo employing over 140 staff.
For further information please visit https://www.samarkand.global/
CHAIRPERSON'S STATEMENT
Introduction
Despite the challenging year we have all faced the Group continues to build on the strong foundations put in place since incorporation in 2016. I am delighted to have joined such a fast-growing company at such an exciting time and I am particularly pleased to be releasing our maiden full year results as a publicly listed company, following our successful oversubscribed IPO and listing onto the Apex segment of the Aquis Growth Market in March 2021.
The results we are reporting today show the significant progress that has been made over the past year. Our teams have remained focused on providing our customers with a more direct-to-consumer route to the world's largest eCommerce market. The mission of the Company, to connect consumers of the eCommerce market in China with international merchants, comes at a time when the need to reach new markets and new consumer groups has never been greater for businesses of all sizes. The pandemic has made eCommerce even more relevant than ever before, characterised by digital trade and technology and we believe Samarkand is at the frontier of this growing market.
Financial Results
The Group delivered significant revenue growth in FY21 of 201% to GBP20.6m (FY20: GBP6.8m) with like for like revenues increasing 116% to GBP14.8m (FY20: GBP6.8m) excluding exceptional revenues of GBP5.8m. As a result of the proceeds raised at the IPO, the Group has moved from a net debt to net cash position. At the year end, the Group's net cash position was GBP11.6m (2020: net debt GBP5.9m), which provides the ideal platform to execute plans and deliver sustainable value.
People
None of this success would be possible without the passion and diligence shown by our people, who have risen to every challenge posed by the pandemic. These results are a reflection of that endeavour and on behalf of the Board, I offer them my sincere thanks.
Board and governance
At the time of the IPO, we established the Board and governance structures suitable for a fast-growing listed company. The newly formed Board, supported by the Nomination & Remuneration, Sustainability and Audit Committees, bring a breadth of experience in eCommerce, public markets, finance, and governance. We have established a solid working relationship, remaining well connected and communicative despite the restraints of the pandemic. It is a pleasure to work with a group of such knowledgeable and experienced professionals and I am grateful for the contributions that have been made to date.
Summary and Outlook
We operate in one of the fastest changing markets where new trends and technologies can, and do, change the market rapidly. This is what makes this such an exciting industry to operate in but also brings with it a unique set of challenges. The ability to adapt and react quickly to the opportunities this environment brings will be key to our success and we are investing heavily in the technology that will best position us to succeed as this market continues to evolve.
We are making good progress towards our goal of acquiring additional consumer brands and making strategic acquisitions which is evidenced by our recent acquisition of Zita West Products and Baba West Ltd. The focus for the year ahead is to further develop the Nomad platform's functionality and services, as well as expand the Group's business development activities in Europe, Northeast Asia, and North America.
The Group has implemented a "buy in the West, build in the East" strategy in relation to its acquisition of own brands. We plan to continue to extend marketing of our own brands over the coming months. This strategy is focused on the identification of Western brands with growth potential, their acquisition, subsequent redevelopment and launch into the Group's sales channels in China and elsewhere.
The market appetite for our technology is being well received by our customers and we believe that the long term opportunity remains significant. We are continuing to build strong momentum with our customers and our own brands and look positively to the year ahead.
Tanith Dodge
Chairperson
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