Ondo Insurtech Plc (LSE: ONDO), the London-listed leader in claims prevention technology for home insurers, is pleased to announce its unaudited results for the six-month period ended 30 September 2023. A copy of the Interim Results is available on the Company’s website, www.ondoplc.com.
FINANCIAL HIGHLIGHTS
● Revenue of £1.2 million for the six-month period ended 30 September 2023 (2022: £0.9 million) an increase of 24%
● Recurring revenue from Software and Services of £0.7m (2022: £0.5 million) an increase of 50%, consistent with our strategic intent to drive recurring revenue, with an exit rate in month of September at an annualised run rate of £1.7m
● Reported operating loss of £1.6m (2022: loss £2.1 million) and adjusted loss before tax* £1.9 million (2022: £1.5 million)
● Restructuring of 5-year loan notes with its largest shareholder, HomeServe Assistance Limited, providing additional non-dilutive financing flexibility and generating non -recurring gain of £0.9 million
● Raised £0.8m through an oversubscribed placing and subscription in May 2023 to support the growing deployment pipeline of the LeakBot system.
* Adjusted for non-recurring items
OPERATIONAL HIGHLIGHTS
● 18,927 LeakBot units were shipped or sold and awaiting shipment during the period, 61% up vs the same period a year ago (2022: 11,752)
● Total registered customers on platform at period end approximately 84,000, 77% growth (2022: 47,000)
● New US deals signed with Mutual of Enumclaw to rollout in Washington state and with Pure Insurance to rollout in New York state
● 5 Year rollout agreed with Länsförsäkringar – the largest home insurer in Sweden – now live in four regions with further regions planned in the next 6-12 months
● Post period deal signed with Nationwide – a top 10 homeowners insurer and Fortune 100 company – to make LeakBot part of their Smart Home Program in the US
● Addressable Households under contract at 2.5m with 3% penetration at 30 September 2023 (2022: 0.5m with 10% penetration) an increase of 394%. Addressable Households increases further to 5m post period with addition of Nationwide.
INTERIM RESULTS 6 months ending Sep 30
Addressable Households under contract step-change growth:
Sep 22: 0.5m (10% pen)
Sep 23: 2.5m (3% pen)
Nov 23: 5m (1.6% pen)
Registered customers +77% to 84,000
Unit sales +66%
HY revenue £1.2m +24%
Recurring Revenue +50% with Annual Run… pic.twitter.com/Wl6E9IXnuK— Ondo InsurTech Plc (@OndoPlc) November 20, 2023
CHAIRMAN’S STATEMENT
Today we are pleased to present the unaudited results for the 6-month period to 30 September 2023. In a relatively short period since publishing our first audited Group financial results and in a northern hemisphere summer period that can be quieter for new partner initiatives, the Group has continued to demonstrate substantial progress in the execution of its strategy, including in the highly prospective US market.
Unit sales grew by 61% in the period and Registered customers grew by 77% which resulted in the 50% growth in revenue from Ongoing Software, Services and Repairs. This growth was primarily driven by further penetration into our existing partners in the UK, Denmark and Sweden.
Underpinning the Group’s revenue projections in the short to medium term, we were delighted to announce in July 2023 that our pre-existing partner Länsförsäkringar had signed a new five-year contract to support LeakBot’s rollout across Sweden. Länsförsäkringar is the largest non-life insurer in Sweden and has approximately 2 million home insurance customers.
Länsförsäkringar first tested LeakBot in the Södermanland regional pilot which delivered a 40% penetration of addressable policyholders and an impressive 50% increase in new home insurance sales, in addition to the prevention of water damage claims. If LeakBot achieve the same results across the Länsförsäkringar Group, then the total revenue opportunity is over £30 million to Ondo.
Particularly notable have been the steps taken to enter the US, a market with the structure and dynamic that promises very considerable growth potential for the Group.
In June 2023, we announced that premium US insurer Mutual of Enumclaw (“MOE”) had signed a contract to distribute Ondo’s LeakBot system to homeowner insurance customers in Washington State, followed in August 2023 by a new partnership with PURE Insurance and then, post period end, in November 2023 the contract signed with Nationwide.
Nationwide is a breakthrough opportunity in the United States for the Group. Nationwide is a Top 10 US homeowner insurer, and a Fortune 100 company. They have a Smart Home Program already live in 34 US states. LeakBot is now being integrated into that technical platform and we look forward to seeing the customer launch into the first US states in early 2024.
Building on its Green Economy credentials, the Group was excited to announce in June 2023 the results of a pilot deployment by Portsmouth Water to assess the ability of LeakBot devices to reduce household water leakage. UK water regulator, Ofwat has created an innovation fund of up to £100m to encourage solutions that can drive water efficiency in England and Wales from 2024 onwards.
In further pursuit of this, the Group went on to announce in July 2023 a new affiliate partnership with Waterwise – the leading UK water efficiency NGO and in August 2023 a second pilot with Southern Water. Ondo and Waterwise are collaborating to promote the wise use of water, including supporting the rollout of technologies such as LeakBot that can help reduce pressure on the UK’s water resources.
In May, the Group raised £0.8m through an oversubscribed placing and subscription to support the growing deployment pipeline of the LeakBot system. My fellow directors Kevin Withington and Andy Morrison joined me in participating in the fund-raising with details as set out in the announcement of 12 May 2023.
The traction demonstrated by the business has been recognised by the market, with the shares attracting new buyers over the summer. After the period end, in October 2023, Ondo announced the appointment of Dowgate as brokers to the Company. With its active wealth management arm and experience in addressing family office and institutional investors, we believe this will help ensure that the Company is in the right hands as it continues to expand its operations and heads for cash break-even.
In generally difficult market conditions, the Group has performed well. I would like to thank everyone for their extraordinary effort over an extended period of sustained activity.
Gregory Mark Wood CBE
Chairman
20 November 2023
