Ondo Insurtech Plc is pleased to announce its unaudited results for the six-month period ended 31 August 2022. A copy of the Interim Results is available on the Company's website,  www.ondoplc.com

·      Revenue of £1 million for the six-month period ended 31^st August 2022, which is 55% higher than for the same period a year ago (6 months to end 31^st Aug 2021: £0.6 million)

·      £0.4m was from recurring Software and Services +59% growth (6 months to end 31^st Aug 2021: £0.2 million) and £0.6m of turnover was from one-off Hardware and Set-up fees +50% growth (6 months to end 31^st Aug 2021: £0.4 million)

·      Gross Contribution for the period was £0.5m +188% (6 months to end 31^st Aug 2021: £0.2 million) therefore illustrating a Gross Margin for the period of 49% achieving the strong unit economics of the business.

·      Approximately £0.9 million cash received from customers during the period, 120% growth vs. the same period a year ago (6 months to end 31^st Aug 2021: £0.4 million).

·      Period end cash and cash equivalents of c. £1.87million, 1.7 times growth vs the same period a year ago (6 months to end 31^st Aug 2021: £1.06 million)

OPERATIONAL HIGHLIGHTS (including post-period updates)

·      Consumer Intelligence Research published showing LeakBot delivers 70% reduction in claims costs

·      15,887 LeakBot units were shipped or sold and awaiting shipment to insurance companies during the period, 2.7 times higher vs the same period a year ago (H1 FY 2021: 5,908)

·      Total registered customers on platform at period end were approximately 46,000, +43% growth (H1 FY 2021: 32,000). 

·      New contract  signed with Admiral (20,000 unit), LB Forsikring (10,000 units), Privatsikring and new entry into New York State launched in April.

·      Green Economy Mark awarded to Ondo by the London Stock Exchange

·      Management team further strengthened with CFO Kevin Withington and CTO Chris Jelley hired, and Jim Strickland hired as General Manager for newly formed LeakBot USA Inc

Craig Foster - CEO of Ondo InsurTech Plc - commented: "We are thrilled to release our first set of results as a public company, showing our investors that we are on plan, doing exactly what we said we would do and are on the way to building the market leading company in claims prevention technology for home insurers".

CEO Craig Foster will be providing a live company presentation and Q&A on Monday, 21st November at 2pm (GMT).

The event will be hosted virtually by the London Stock Exchange on its Spark Live Platform and open to shareholders, prospective investors, journalists and financial analysts.

Please register interest here:

https://www.lsegissuerservices.com/spark/ONDOINSURTECH/events/068ec42f-589e-40f1-9f9e-14533986c198

The presentation will subsequently be available on ONDO's company page on the London Stock Exchange website:

https://www.londonstockexchange.com/stock/ONDO/ondo-insurtech-plc/company-page

For more information, please contact:

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

For further information, visit www.ondoplc.com  contact:

•      payment to HomeServe Assistance Limited ("Seller") of £1,599,548 in cash;

•      issue and allotment of 13,628,275 and 1,363,392 Consideration Shares to the Seller and Gregory Mark Wood CBE respectively at £0.12 per share, representing an aggregate amount of £1,799,000; and

•      granting of secured loan notes of the Buyer with a redemption value equal to £6,401,000.

I am very pleased to announce our interim results for the period ending 31^st August 2022 - our first set of consolidated results as Ondo InsurTech Plc.

Since arriving on London Stock Exchange in March 2022 we have announced a whole raft of new partnerships.  For the first time today, our shareholders can see how quickly those announcements can be turned into trading results for the company.

Our mission - A world leader in claims prevention tech for home insurers - solving a $17bn problem

Our mission is to become a world leader in claims prevention technology for home insurers. Our first set of results show how we are on our way to fulfilling this vision.  The reason I am confident we will be successful is that we have the only patented and proven solution to one of the most significant perils in home insurance - claims caused by water damage. In the US and UK there are 1.6m claims a year caused by water damage, costing insurers $17bn annually.  With our flagship product LeakBot we have a patented and proven solution to this significant industry problem.

Operational Highlights

In the first Half year, we have announced a raft of new partnerships all contributing towards our goal of becoming the leader in claims prevention technology for home insurers.

In May we published a landmark study based on research by Consumer Intelligence, who delved into the claims experience of our customer base, which at the time spanned 56,000 device-years of data.  That study showed that in the UK where our model is the most mature, we can reduce water damage claims costs by 70% - giving us new statistics which underpin the value of the business model for our insurance partners. 

In August we were also proud to announce that Ondo had received the London Stock Exchange's Green Economy Mark. The Mark identifies companies that derive a significant amount of their sales from green economy products and services, and Ondo received the award in recognition of LeakBot's ability to save significant amounts of water by resolving leaks in homes.  

In July we announced a new landmark contract  with Admiral in the UK. Admiral are the first mainstream UK insurer to adopt the LeakBot system.  Admiral are one of the biggest home insurers in the UK with 1.3 million customers and are the fastest growing home insurer with 11% growth in the last year.  Admiral have begun a rollout of 20,000 LeakBots over a 6 month period on their Platinum cover product, using the results to scope out the opportunity for a larger scale roll-out across the Admiral book. 

In August we announced our 3^rd partner in Denmark, disclosing that LB Forsikring  were rolling out LeakBot after a successful trial where they saw a 50% reduction in claims costs.  LB Forsikring have committed to roll out at least 10,000 devices to their 126,000 home insurance customers in Denmark, with 3,000 devices being distributed before the end of 2022.

In North America we are now concluding a pilot with Mapfre in Massachusetts, recently announced in April an expansion into the State of New York and have presented alongside Hiscox to many US carriers at the Society of Insurance Research Annual Conference to explain our model in detail.  Based on robust pipeline we are bullish about prospects in the USA.

Back in the UK - building on the green credentials bestowed by the Green Economy Mark we signed a new deal with our first water utility. Portsmouth Water are running our first water utility pilot to test whether LeakBot can be used to help reduce what water companies refer to as "customer side leakage".  Complementary to our Home Insurance go-to-market model, water utilities could open up a whole new route to market for LeakBot.

Financial Results

Although many of these contracts  are newly signed , our strong set of financial results demonstrate the growing momentum of the business. 

1H Revenue was £1m over the 6 months 55% growth vs year ago.  For the first time we have disclosed how this revenue is made up from ongoing Software and Services to insurers, compared to set-up fees and hardware fees.  This revenue is made up of £0.6m of one-off device and set-up fees (+50% growth), and £0.4m of revenue from ongoing Services and Subscriptions (+59% growth).  This underlines the recurring revenue aspect of our business model) showing the strong growth through the period as we onboard new partnerships.

This revenue growth was driven by a growth in registered devices to 46,000 +43% up on the prior year and more encouraging these customers continue to generate ongoing Services and Subscription revenues, a strong indicator of the good lifetime value of these customers.

Cash received from our insurance partners  totalled £0.9m in the 6 months, up 120% on the previous year . 

The gross margin on this business during the half year was 49% demonstrating the strong unit economics of the LeakBot business.

With revenue up 55%, it is important to keep control on Operating Expenditure which I am pleased to report has only increased by 7% despite adding the additional overheads of being a PLC, adding three senior executives to the team (CFO, CTO and General Manager for North America) and adding additional costs of  replacing  some of the group services when we separated from HomeServe PLC.

Tackling Tough Times Head On

While today's economic situation is challenging, we are well placed to weather the storm.  Upward cost pressures on water damage claims costs actually create more of an incentive for insurers to try and mitigate these costs.  We are managing upward cost pressures on our hardware costs successfully, and although we have seen some cost increases, we have managed to pass these on to our customers creating no material difference in the life time value of a customer. 

Our immediate focus - more of the same

We are on a mission to become the world leader in claims prevention technology for home insurers.  Our immediate focus is to do more of the same - sign more partnerships, install more units in homes, driving continued year-on-year savings for carriers and delivering year-on-year recurring returns for our shareholders. 

We are really pleased to be able to announce these first results to the market and to demonstrate that we are delivering exactly what we set out to do in the Prospectus.  Likewise, we have good line of site for the 2HY results and are equally looking forward to making more announcements soon and showing further progress for the full year period.

Thank you to all the team who make it happen every day, to our homeowners for doing their bit and to the insurers and investors who have been early adopters and believers in our mission - we are just getting started.