Good Life Plus — Welcome to the Goodlife!

Good Life Plus (AQSE: GDLF)

Last close As at 24/04/2024

GBP0.02

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Market capitalisation

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Research: Consumer

Good Life Plus — Welcome to the Goodlife!

Good Life Plus (GL+) is an early-stage, entertainment-focused, subscription-based prize draw operator. Based in the UK, the business was founded in 2021. The majority of GL+’s members pay a subscription fee, which provides entry into daily prize draws for relatively high-value consumer goods and experiences, ranging from cash prizes and holidays to luxury cars. A key differentiator of GL+’s value proposition is the discounts and offers to members for UK-based restaurants, cinemas and other entertainment-focused experiences. The company to date has limited financials and as such we rely on management’s internal expectations to derive future EBITDA margins and valuation. We have provided some sensitivities around management’s base case assumptions due to the early-stage nature of the business and high level of execution risk.

Written by

Milo Bussell

Associate Analyst, Consumer and Media

Consumer

Good Life Plus

Welcome to the Goodlife!

Business overview

Entertainment

29 February 2024

Price

1.88p

Market cap

£12m

Net cash (£k) at 31 March 2023

31

Shares in issue

629m

Free float

95.9%

Code

GDLF

Primary exchange

AQSE

Secondary exchange

N/A

Business description

Good Life Plus is a UK entertainment-focused, subscription-based prize draw. The business has c 25,500 subscribers across varying levels of membership tiers. Prizes include luxury cars, watches and holidays, while members also receive offers and discounts at UK restaurants and cinemas.

Analysts

Milo Bussell

+44 (0)20 3077 5700

Russell Pointon

+44 (0)20 3077 5700

Good Life Plus is a research client of Edison Investment Research Limited

Good Life Plus (GL+) is an early-stage, entertainment-focused, subscription-based prize draw operator. Based in the UK, the business was founded in 2021. The majority of GL+’s members pay a subscription fee, which provides entry into daily prize draws for relatively high-value consumer goods and experiences, ranging from cash prizes and holidays to luxury cars. A key differentiator of GL+’s value proposition is the discounts and offers to members for UK-based restaurants, cinemas and other entertainment-focused experiences. The company to date has limited financials and as such we rely on management’s internal expectations to derive future EBITDA margins and valuation. We have provided some sensitivities around management’s base case assumptions due to the early-stage nature of the business and high level of execution risk.

Disruptor with lottery and entertainment offering

GL+’s business model is a disruptive offering in the existing prize draw and lottery sector, a robust subsegment of the wider UK gaming market. Many of GL+’s peers are pureplay lottery competitions, as opposed to GL+’s multi-entertainment offering. Furthermore, many of these UK-based operators are subject to local gaming regulations. Since GL+ also offers members a free entry route to prize draws online or via the post alongside the main paying subscription, it is not beholden to the same UK regulatory requirements as the traditional operators. This significantly lowers the cost burden for GL+ as it scales.

Rapid growth profile

The company to date has demonstrated rapid growth in its user base to c 25,500 subscribers since inception in 2021. This has been driven by a number of key variables, including the level of marketing spend, efficiency of marketing spend, churn rate and average spend per customer. Given the early-stage nature of the business, GL+’s marketing costs, key to growing its subscriber base, are very high relative to revenue. However, as the subscriber base matures and the company benefits from operational leverage given its low fixed-cost base, GL+ should see a rapid improvement in EBITDA margins over the next three years of trading. We provide a sensitivity based on management’s accounts in the Financials section.

Financials and valuation

The purpose of this report is to discuss the company, its growth strategy and provide some wider context to give an idea of the market opportunity. This report relies solely on the company’s disclosure and management’s expectations, which we have flexed to assess the potential impact of key variables on the EBITDA margin profile of the business. We have also used recent peer acquisition multiples to assess the potential enterprise value of the business.

Introduction and scope

GL+ is a disruptive, entertainment-focused subscription service, offering monthly subscribers the chance of the ‘good life’ through daily prize draws as well as discounts and rewards. Potential prizes include luxury cars, holidays, high-value electronic goods and experiences with a cash alternative. Membership to GL+ also provides subscribers with discounts and rewards at national brand restaurants and experiences, comparable to an entertainment or lifestyle subscription with the added bonus of entry into the prize draws. Free cinema tickets or a monthly complimentary movie are also offered to members based on their subscription plan. Daily prize draws are held live and online with presenters, providing greater engagement and transparency with members when compared to traditional lottery or prize draw models.

Co-founded in 2021 by brothers Charlie and Joseph Chadd, GL+ has grown quickly from 7,000 subscribers in September 2022 to c 25,500 subscribers and more than 800,000 email subscribers. Subscribers are acquired through targeted social media marketing campaigns across Google, YouTube, Facebook and Taboola. Management notes GL+ has over 400,000 followers across multiple social media platforms and 2,256 five-star reviews on Trustpilot.

Management believes its model provides an exciting alternative to the current traditional lottery and prize draws from operators including the People’s Postcode Lottery, the UK National Lottery, Best Of The Best and Omaze. By offering discounts and rewards through a subscription model, GL+ provides customers with a value-add membership to the Good Life Plus club. This generates scalable and profitable recurring revenue. Much like other lottery operators, GL+ supports charitable causes, focusing specifically on supporting young British athletes and children. The company, however, does not state how much of its membership fee goes towards these causes.

GL+ came to market via a reverse takeover of Semper Fortis Esports on the Aquis Stock Exchange (AQSE) Growth Market, with the first day of dealings on 18 December 2023. GL+ undertook a placing and subscription offer at a price of 2p, raising £1.4m, equating to a market capitalisation on admission of £12.58m.

The purpose of this report is to discuss the company and its growth strategy, and provide some wider context to give an idea of the market opportunity. This report relies solely on the company’s disclosure and management’s expectations, and we have carried out a limited sense check on the financial model. The valuation is based on the company’s own financial model, with Edison flexing it to provide sensitivities around key variables. Key risks associated with investing in GL+ include the early-stage nature of the business, and hence high execution risk, as well as liquidity issues due to its AQSE listing and potential concerns regarding data protection and cybersecurity given its heavy reliance on customer data.

Company overview

Subscription model

New customers to the GL+ website are initially offered entry into GL+’s prize draw for free, by providing their name and email address. This allows GL+ to follow up with a membership offer via email. If a customer converts to a paying subscriber, they are given a free seven-day trial, after which they start being billed.

GL+’s business model is predominantly based on a monthly membership fee, which is tiered, as illustrated below:

Exhibit 1: GL+ membership tier fees and benefits

Membership tier

Monthly fee

Number of entries per draw

Entertainment benefits

Postal route

Free

One per entry

N/A

Standard

£11.99

25

Discounts across entertainment and restaurants

Platinum

£19.99

80

Discounts across entertainment and restaurants

Complimentary monthly movie

VIP

£29.99

150

Discounts across entertainment and restaurants

Complimentary monthly movie

Two Vue movie tickets each month

Source: Good Life Plus

GL+ also offers an unlimited membership for an annual price of £99.99, which is paid a year in advance, equating to a c 30% discount to the standard membership plan. This unlimited subscription provides subscribers with 100 entries per prize draw, with entry in every daily draw.

In addition to the prize draw entries, GL+ members are offered discounts at national chain restaurants including Pizza Hut, Zizzi, Caffè Nero, Domino’s and Gourmet Burger Kitchen. As shown in Exhibit 1, higher-paying members are also offered a complimentary movie or two Vue movie tickets per month. Members are also offered deals on leisure experiences, such as indoor skydiving or Thames River boat rides.

As the company scales, management plans to develop the membership offering via additional benefits to the various tiers. Other additional benefits include members being able to weight their allocated entries into certain draws, a loyalty programme and a referral scheme.

As with any subscription service business, GL+ faces challenges around customer retention and churn rate. Since launch management has focused on lowering the churn rate of paying members, a key metric that underpins the recurring revenue model. GL+ believes that the development of the membership tiers as described above will grow its customer retention levels, as well as an improvement in the prizes on offer, which would consequently increase the lifetime value of a customer.

Benefiting from the free prize draw option

Essential to GL+’s business model, the company offers consumers wishing to enter the prize draw the opportunity to do so for free via the post. These postal entries are sent by the individual with their personal and contact information, as well as the prize draw they wish to enter. The company allows one postal entry per envelope and the terms and conditions of the prize draw are applied equally across the entries from the paying membership and the free postal route.

This freemium option is key to GL+’s model as it means the company is not beholden to the same UK regulatory requirements as the traditional lottery operators. This is due to GL+ operating a free prize draw and promoting both the free and paid routes to prize draw entry on an equal basis.

Exciting growth profile

GL+ is still very early stage but has demonstrated rapid growth in its first two years of trading. Revenue in H123 to 31 March 2023 was £638,895, not far off the amount achieved between the company’s inception (17 September 2021) and 30 September 2022 of £752,522. Over the same period the subscriber base has more than tripled from 7,000 to c 25,500.

Key to the company’s growth profile is the level of and return on marketing spend, as well as the churn rate. Based on the company accounts in the Admission Document, in GL+’s first year of trading, advertising and marketing fees were almost 100% of sales. This highlights the importance of effective marketing in driving customer acquisition at as low a cost possible. Management notes it is always evaluating alternative marketing strategies to ensure maximum efficiency.

Simply put, an increase in the level of marketing expenditure drives revenue growth. Due to the company’s relatively low overhead costs, much of the gross margin, which is after the cost of the prizes awarded to members, drops through to cash. This cash is reinvested into the business to continue acquiring customers and driving the subscriber base. Greater detail around the sensitivity to potential EBITDA margins is discussed in the Financials section.

The scaling and growth of GL+’s membership base is important in making the company an attractive proposition for high-quality entertainment- or leisure-focused companies to partner with. This in turn makes the GL+ offer more appealing to the consumer as the breadth of exclusive discounts and rewards available through a subscription grows.

Market overview

The UK online gaming market has grown significantly over the past 10 years. Active online gambling accounts have grown from 15.2m in 2011/12 to the latest figure of 31.9m in 2021/22, while gross gambling yield has increased from £710m to £6.4bn over the same period (source: Statista). The substantial growth has been enabled by greater regulation of the UK market, in particular the Gambling (Licensing and Advertising) Act 2014. Although regulation in the short term can cause disruption, formal regulation is generally positive for gambling operators in the longer term, as it provides a clearer operating environment and reduces future regulatory risk.

Exhibit 2: Active online gambling customer accounts in Great Britain, 2012–22

Exhibit 3: Gross gambling yield of online gambling industry in Great Britain, 2012–22

Source: Statista

Source: Statista

Exhibit 2: Active online gambling customer accounts in Great Britain, 2012–22

Source: Statista

Exhibit 3: Gross gambling yield of online gambling industry in Great Britain, 2012–22

Source: Statista

Lotteries as a gambling channel have consistently accounted for a large proportion of Great Britain’s gross gambling yield, ranging from 24–33% between 2016 and 2022 (source: Statista). Within this, The National Lottery makes up c 86% of the lottery total shown in Exhibit 4, highlighting its consistent popularity within this channel.

Exhibit 4: Percentage share of Great Britain’s gross gaming yield by gambling channel

Source: Statista

The Gambling Commission’s February 2023 report investigated UK gambling participation, specifically breaking down the gambling habits of 4,001 respondents over the prior four weeks. As can be seen in Exhibit 5, both The National Lottery and other forms of lottery entries have consistently been the largest method of online gambling from respondents, alongside an aggregation of sports betting channels.

Exhibit 5: UK online gambling participation channels

Source: Gambling Commission

Consequently, management believes there is a large market opportunity and that GL+ is well positioned to disrupt the sector with its differentiated approach.

Competitive landscape

Although GL+’s business model is unique and disruptive to the traditional prize draw operators, we list below its closest peers and UK lottery operators to give an idea of the potential scale of the business, as well as the competitive environment. Many of these operators are large and well-established, reflecting some of the challenges facing GL+ as it seeks to acquire new customers.

The National Lottery

The National Lottery, established in 1994, is GL+’s largest and most established peer. It reported sales of £8.2bn in 2023. The state-franchised lottery had been operated by Camelot Group since its inception, but from February 2024 will be run by Allwyn Entertainment. The National Lottery offers a range of draws throughout the week for a low entry fee (Lotto: £2, EuroMillions: £2.50). Participants in these draws can enter online or via selected retailers. When compared with GL+, the cash prize on offer is far greater, however the odds of winning are far lower given its scale. The highest jackpot on record for Lotto was £66.1m and for EuroMillions £195.7m.

People’s Postcode Lottery

People’s Postcode Lottery was introduced to the UK in 2005 and is operated by Novamedia. In its annual report the company quotes 4.3 million players in the UK, achieving revenue of €649m. Much like GL+, players pay a monthly subscription fee of £12 to be entered into weekly and monthly cash prizes. Based on the player’s postcode, the weekly cash prize equates to a share of £1m, while the monthly cash prize is a share of a minimum of £3.2m. The People’s Postcode Lottery is widely popular, with the company claiming 70% of Great Britain enters the prize draw. As the company is a regulated lottery it does not need to offer a free route to entry. People’s Postcode Lottery pays out 70% of its revenue in prizes or to charity, with a stated 33% of ticket sales going to charity.

Best Of The Best

Best Of The Best (BOTB) was founded in 1999 by William Hindmarch and is similar to GL+ in the prizes it offers to players, such as luxury cars, cash and lifestyle prizes. For the dream car competition, players enter the prize draw through playing a game of ‘spot the ball’, with the player closest to the centre of the ball winning a luxury car. The entry fee for dream car competition ranges from 80p to £4.95, while the lifestyle competition starts from 50p. Players can purchase up to 75 tickets, however each ticket requires a new choice in the ‘spot the ball’ game and as such it is a clunkier process than GL+ or the other peers. BOTB was admitted to on AIM on 14 August 2006 and was listed until 24 August 2023 when the company was delisted following a recommended cash offer from Globe Invest, which valued the company at an equity valuation of £45.3m. We calculate the exit multiples for the transaction at 1.5x EV/sales and 7.0x EV/EBITDA, based on last reported FY23 revenue of £26.2m, EBITDA of £5.5m and net cash of £6.9m. Globe Invest is an investment holding company of Teddy Sagi, the founder of Playtech and Kape Technologies.

Omaze

Omaze is a US prize draw company that launched in the UK in 2020. It provides players with the chance of winning a luxury multi-million-pound house and a £100,000 cash prize through a draw. Entry into the prize draw can be via a single purchase (ranging from 320 entries for £150 to 15 entries for £10) or via a subscription service (ranging from 150 entries for £30/month to 30 entries for £10/month). Much like GL+, Omaze also offers a free route to players via a postal entry and consequently does not fall under the UK Gambling Act 2005. Omaze donates 17% of all ticket sales to a chosen charity and guarantees said chosen charity a minimum donation of £1m.

Risks

As with most companies in the early stage of the business life cycle, GL+ exhibits execution risk as it scales, particularly as it has not yet been net operating cash flow positive and is loss-making. Gross profit generated from the business operations is reinvested into operating expenses, particularly marketing expenditure, to grow the subscriber base. We undertake a scenario analysis below in our Financials section to show the sensitivities to management’s business execution.

In this section of the note, we will examine the risks that the business faces that are outside of management’s control. These are listed below:

Execution risk: GL+ is still in the early stage of the business cycle and therefore there is a high level of execution risk, with a limited track record, and it is competing against larger and more experienced market players. However, the diverse experience within the management team alongside the differentiated offering provides GL+ with an opportunity to potentially disrupt a well-established industry.

Economic conditions: GL+’s subscription can be seen as highly discretionary spend despite being relatively low value. A tougher consumer environment due to elevated interest rates and tighter household budgets may weigh on GL+’s ability to acquire new customers or retain existing ones.

Regulatory environment: currently, GL+ is not regulated under the UK Gambling Act or required to report to the UK Gambling Commission given its free postal route to prize draw entry. Consequently, its cost base is reduced dramatically when compared to peers that are required to comply with the regulations. However, any change in the UK government’s position on free prize draws could have a significant impact on GL+’s trading position as it might lead to an unforeseen material increase in costs. Although UK gaming regulation has come under greater scrutiny more recently with the publication of the UK government’s white paper in April 2023, the emphasis for prize draws has been on the ‘largest competitions’. The UK government’s particular focus was on improving player protection, transparency and the returns to good causes. GL+’s offer provides a transparent approach through its daily live draws on social media, placing it in a relatively strong position if facing regulatory changes.

Customer data protection: GL+ has already built a large customer database, with 800,000 email subscribers already on its books. Under UK law, GL+ is subject to General Data Protection Regulation (GDPR) and Privacy and Electronic Communications Regulations (PECR) and potential penalties of any breaches of these codes. A breach of said regulations could have a material impact on the business, as the penalties are the greater of £17.5m or 4% of global revenue. Furthermore, any changes to the regulatory environment surrounding the use of customer data could have an impact on the operations of GL+, particularly relating to direct marketing as this is GL+’s primary method of customer acquisition.

Cybersecurity: the company is heavily dependent on IT systems given the business model is predominantly an online model. The potential impact of any cyberattacks on the business could pose a major risk given the sensitivity of the data GL+ is handling, including personal and credit card information.

AQSE listing: the company is listed on the AQSE Growth Market, an index that is predominantly for small, early-stage companies. Given this, there is a greater level of liquidity risk when compared to a main market listing.

Management

GL+ has assembled an experienced management team across both the gaming and digital marketing spaces, as well as expertise in scaling early-stage companies with a similar profile to GL+. The board believes this management team has the correct expertise and is well positioned to scale the business.

Charlie Chadd – CEO: Charlie graduated from Nottingham University with a degree in economics and subsequently worked at TLS Investments while completing an MSc in real estate and finance at Reading University. He set up Borough Studios in 2017, a co-working space in London with a four-year lease, and having fitted it out he used digital marketing to promote the space. The company ran at capacity with 200 desks and was profitable in year two. Charlie then set up Good Life in the last year of the lease with his brother Joseph Chadd and launched the subscription model (Good Life +) in 2021.

Joseph Chadd – executive director: after graduating from Exeter, Joseph joined RBS’s equity trading desk through its investment banking programme, later moving to JP Morgan’s FX trading desk. In 2012, he founded Prestige Cars Kent, now a top 30 UK independent auto dealership by turnover and Kent’s largest independent prestige dealer, with 75 staff and sales of £50m in 2022. Alongside his brother Charlie, Joseph is a co-founder of GL+ and was pivotal in re-launching the subscription service in 2021. He oversees commercial operations at GL+.

David Craven – chairman: David has extensive experience in the global gaming sector. He was the former CEO of Allwyn where he played a crucial role in winning the fourth National Lottery licence from the previous operator, Camelot. He led The Tote from a state monopoly to a successful private company and co-founded UPC/Chello, leading them to an IPO in 1999. David has extensive board-level experience, including as chairman of Turf TV and a board member at Ultimate Finance Group.

John Gordon – non-executive director: John is the CEO and co-founder of Incentive Games, a B2B software provider that specialises in customer engagement, retention and monetisation. Through fun, engaging solutions, Incentive helps clients such as Bet365, FanDuel and LiveScore acquire users, upsell products and strategically drive traffic to improve monetisation and spur growth.

John Edward Taylor – non-executive director: John previously spent 20 years in the Army Air Corps, and has more recently focused on assisting the development of small-cap listed companies. He is currently the chairman of AQSE-listed Asimilar Group and is an NED of AQSE-listed TAP Global and BrandShield Systems. He has previously held NED roles at AIM-listed companies including Pathfinder Minerals, Sabien Technology Group and Bidstack Group.

David Ivy – CTO: with over 20 years in the digital sector, David founded the web agency Ellipsis Media in 1999, serving as creative and digital director. He grew it into the dotDigital Group, spearheading industry-leading products like dotMailer and taking the email platform public. At dotDigital, he managed 300+ employees, including 50+ product designers and developers. After exiting, he consulted for companies like eBay and Grosvenor, advising on growth and mentoring directors. David now oversees product architecture at GL+, ensuring robustness and scalability amid GL+’s ambitious expansion plans.

Ian McCaig – adviser: Ian founded Fiit, a top-rated digital fitness subscription business with the UK’s number one rated fitness app, whose strategic partners include Sky and Samsung. He is a seasoned entrepreneur skilled at scaling high-growth companies, previously co-founding and serving as CMO of Qubit, which was acquired by TSX-listed Coveo Solutions in 2021.

Victor Chandler – adviser: Victor is a prominent British entrepreneur. He founded one of the UK’s leading iGaming companies, BetVictor, and served as chairman during its period of growth. Having sold his stake in 2014, he now is an active investor in the real estate and technology spaces. He will provide GL+ with advice on customer acquisition and retention, as well as insight into scaling the company.

Financials

GL+’s model is to attract new customers through a number of digital marketing channels, by offering a range of membership plans. The company then looks to subsequently retain its membership base through increasingly attractive prize draws and membership offers. The membership base has grown rapidly since inception, with the latest figure at c 25,500.

GL+ has a number of levers it can pull to control the rate of growth of paying new subscribers, and therefore its recurring revenue. The company has a low fixed-cost base due to a small number of employees and a relatively small number of overheads. Given variable costs make up a much larger proportion of the cost base, of which marketing and advertising make up the majority, this presents the opportunity for operational leverage as the revenue grows. This is particularly pertinent given the company’s early stage. Management can scale up or down the absolute level of marketing spend to influence the growth rate of new subscribers, as well as improving the efficiency of that spend with a greater level of targeting or a change in the mix of channels it utilises.

As with any subscription business, GL+ faces issues around customer retention and churn. GL+ has already implemented actions to reduce the churn rate, and is evaluating other churn reduction measures. Reflecting the rapid growth of the company, the selected financials provided in the Admission Document show revenue of £639k in the six months to 31 March 2023, 85% of the total revenue for the full year to September 2022.

In the six months to 31 March 2023, the most recent period of trading, GL+ reported a net cash outflow of £157k, as the operating loss was offset by an injection of cash with the issue of new shares. As GL+ is likely to remain lossmaking at the EBITDA level in FY24, given the ramp up in marketing spend to grow the subscriber base, it is important that the group remains well funded until profitability. Of the £1.4m equity raise through the placing in the reverse takeover in December 2023, management has allocated 80% of funds to the acquisition of new customers and 10% to product development. The reported cash flow and balance sheet figures in Exhibits 9 and 10 do not account for the equity raise.

Margin sensitivities

Given the early-stage nature of GL+ and its lack of trading history, we are reliant on management’s base case expectations when undertaking scenario analysis of the direction of EBITDA margins by 2026. Management’s base case scenario anticipates revenue growth of 141% in FY24, 253% in FY25 and 150% in FY26, with margins developing from negative 24% in FY24 to 35% in FY26. This is under the assumption of a broadly stable cost of acquisition per new customer (CAC), average revenue spend per user (ARPU) and long-term churn rate. The visibility on these is limited given the lack of disclosure of the absolute numbers.

In Exhibit 6 we provide a sensitivity of the FY26 EBITDA margin around management’s base case to changes in the CAC and ARPU of -30% to +30%. This sensitivity is based on all other inputs remaining fixed, including group overheads and the absolute level of marketing spend. The input changes to ARPU and CAC affect the numbers from January 2025 through to December 2026, as we assume that management has relatively good visibility over the next 12 months of trading. It is clear, however, that if GL+ sees a fall in its ARPU or a rise in its CAC, then the likelihood is that management would reign in marketing costs to manage cash flow.

Exhibit 6: FY26 EBITDA margin scenarios

ARPU relative to base case

(30)%

(20)%

(10)%

0%

10%

20%

30%

CAC relative to base case

30%

(3)%

8%

16%

23%

29%

34%

37%

20%

2%

13%

21%

27%

32%

37%

40%

10%

8%

17%

25%

31%

36%

40%

43%

0%

13%

22%

29%

35%

39%

43%

46%

(10)%

19%

27%

34%

39%

43%

46%

49%

(20)%

25%

32%

38%

43%

47%

50%

53%

(30)%

31%

37%

43%

47%

50%

53%

56%

Source: Good Life Plus, Edison Investment Research

Peer valuation

As mentioned previously, BOTB was acquired by Globe Invest in August 2023 at exit multiples of 1.5x EV/sales and 7.0x EV/EBITDA. We have applied these multiples to FY26 revenue and EBITDA expectations and have discounted these back at a range of discount rates to arrive at a range of potential enterprise/equity values for the company. We show in Exhibit 7 the sensitivity of these discounted enterprise values to the different discount rates. Importantly, we note that to achieve positive EBITDA, GL+ is likely to require additional funding.

Exhibit 7: EV valuation sensitivity to different discount rates (£m)

10%

12.5%

15%

EV/sales

52.9

49.4

46.3

EV/EBITDA

119.4

111.7

104.5

Source: Good Life Plus, Edison Investment Research

Exhibit 8: Profit & loss (£)

17 September 2021 to 30 September 2022

H123 (to 31 March 2023)

Revenue

752,522

638,895

COGS

(671,016)

(269,941)

Main prizes awarded to members

(663,246)

Other COGS

(7,770)

Admin expenses

(1,428,075)

(1,189,840)

Wages and salaries

(131,489)

Referral fees

(110,000)

Consulting and professional fees

(55,378)

Advertising/marketing fees

(751,554)

Card and other processing fees

(46,201)

Software and website maintenance

(180,855)

Subscriptions

(21,971)

Legal fees

(22,865)

Accountancy fees

(15,290)

Other admin expenses

(92,472)

Operating profit/(loss)

(1,346,569)

(820,886)

Finance costs

(155)

Other income

30,000

Profit/(Loss) before interest and tax (EBIT)

(1,316,724)

(820,886)

Tax

0

PAT

(1,316,724)

(820,886)

Weighted average no of shares

4,052,275

EPS

(0.32)

Source: Good Life Plus

Exhibit 9: Cash flow (£)

17 September 2021 to 30 September 2022

H123 (to 31 March 2023)

Cash flow from operations

PBT

(1,316,724)

(820,886)

Decrease/(increase) in inventories

(89,662)

Decrease/(increase) in receivables

(27,248)

(52,021)

Increase/(decrease) in payables

185,495

239,422

Share based payments

(25,000)

Issue of non-cash shares

110,355

Net cash flow from operations

(1,162,784)

(633,485)

Cash flow from investing

Purchase of fixed assets

(7,011)

Proceeds from sale of inventory

78,476

Net cash flow from investing

0

71,465

Cash flow from financing

Amount owed by related parties

(4,160)

Proceeds from share issue

1,355,000

404,999

Net cash flow from financing

1,350,840

404,999

Net change in cash

188,056

(157,021)

Cash at start

0

188,056

Cash at end

188,056

31,035

Source: Good Life Plus

Exhibit 10: Balance sheet (£)

17 September 2021 to 30 September 2022

H123 (to 31 March 2023)

Non-current assets

PPE

7,011

Current assets

Inventory

89,662

11,187

Trade receivables

31,408

83,429

Cash and cash equivalents

188,056

31,035

Total assets

309,126

132,662

Current liabilities

Trade payables

185,495

424,919

Total liabilities

185,495

424,919

Net assets

123,631

(292,257)

Equity

Share capital

500

50,500

Share premium

1,439,855

1,794,854

Retained losses

(1,316,724)

(2,137,611)

Total equity

123,631

(292,257)

Source: Good Life Plus

Contact details

Revenue by geography

6 Heddon Street
London, W1B 4BT
United Kingdom
+44 (0)203 988 0238
https://investors.goodlifeplus.co.uk/

Contact details

6 Heddon Street
London, W1B 4BT
United Kingdom
+44 (0)203 988 0238
https://investors.goodlifeplus.co.uk/

Revenue by geography

Management team

CEO: Charlie Chadd

Executive director: Joseph Chadd

Charlie graduated from Nottingham University with a degree in economics and subsequently worked at TLS Investments while completing an MSc in real estate and finance at Reading University. Charlie set up Good Life with his brother Joseph Chadd and launched the subscription model (Good Life +) in 2021.

After graduating from Exeter, Joseph joined RBS’s equity trading desk through its investment banking programme, later moving to JP Morgan’s FX trading desk. In 2012, he founded Prestige Cars Kent, now a top 30 UK independent auto dealership by turnover. Alongside his brother Charlie, Joseph is a co-founder of GL+ and oversees commercial operations at GL+.

Chairman: David Craven

David was the former CEO of Allwyn where he played a crucial role in winning the fourth National Lottery licence from the previous operator, Camelot. He led The Tote from a state monopoly to a successful private company and co-founded UPC/Chello, leading them to an IPO in 1999. David has extensive board-level experience, including as chairman of Turf TV and a board member at Ultimate Finance Group.

Management team

CEO: Charlie Chadd

Charlie graduated from Nottingham University with a degree in economics and subsequently worked at TLS Investments while completing an MSc in real estate and finance at Reading University. Charlie set up Good Life with his brother Joseph Chadd and launched the subscription model (Good Life +) in 2021.

Executive director: Joseph Chadd

After graduating from Exeter, Joseph joined RBS’s equity trading desk through its investment banking programme, later moving to JP Morgan’s FX trading desk. In 2012, he founded Prestige Cars Kent, now a top 30 UK independent auto dealership by turnover. Alongside his brother Charlie, Joseph is a co-founder of GL+ and oversees commercial operations at GL+.

Chairman: David Craven

David was the former CEO of Allwyn where he played a crucial role in winning the fourth National Lottery licence from the previous operator, Camelot. He led The Tote from a state monopoly to a successful private company and co-founded UPC/Chello, leading them to an IPO in 1999. David has extensive board-level experience, including as chairman of Turf TV and a board member at Ultimate Finance Group.

Principal shareholders

(%)

Charlie Chadd

30%

Joseph Chadd

20%

Goldman Sachs Securities (Nominees)

6%

Olgun Remzi

4%

Seguro Nominees

3%

The Bank of New York (Nominees)

3%

Nicholas Paul

3%


General disclaimer and copyright

This report has been commissioned by Good Life Plus and prepared and issued by Edison, in consideration of a fee payable by Good Life Plus. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison’s policies on personal dealing and conflicts of interest.

Copyright: Copyright 2024 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers’ exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

General disclaimer and copyright

This report has been commissioned by Good Life Plus and prepared and issued by Edison, in consideration of a fee payable by Good Life Plus. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison’s policies on personal dealing and conflicts of interest.

Copyright: Copyright 2024 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers’ exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

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