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Trustpilot Group PLC updated on its liquidity position following the receivership of SVB UK, its principal banking partner. As of March 13, 2023, Trustpilot reported $24 million in immediately accessible cash, including $19 million with another bank and $4.5 million guaranteed by the US Federal Reserve. An additional $36 million is held in SVB UK and $18 million is pending confirmation of transfer out of SVB UK.
| Date | 13 Mar 2023 |
| Time | 07:00:07 |
| Category | Corporate updates |
| ID | 7189S |
13 March 2022
This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulations
Trustpilot Group plc
Update regarding liquidity position and resilience
Trustpilot Group plc ("Trustpilot"), a leading global review platform, is providing an update following the closure of Silicon Valley Bank ("SVB") in the United States and the subsequent entry into receivership of its UK arm ("SVB UK").
SVB UK was Trustpilot's principal banking partner, but we have alternative banking relationships that allow us to continue to operate our ordinary course of business.
Our immediately accessible cash is $24 million, made up of $19 million cash on deposit with another bank, $4.5 million guaranteed by the US Federal Reserve following their announcement on 12 March, and amounts due to be returned under the guaranteed deposit insurance schemes in the UK.
On 31 December 2022, our net cash balance was $73.5 million with no debt. This was unchanged on our cash position on 30 June 2022, as during the second half of the financial year we achieved breakeven at the adjusted EBITDA level and did not consume cash. Our positive momentum and operating leverage have continued since the year end, and we have been cash flow positive each month since September 2022.
The Board is confident in Trustpilot's' liquidity position and resilience. Meanwhile, we have put in place measures to proactively manage our cash position during this period of uncertainty, and wider unpredictability in the current macroeconomic environment.
We are encouraged that the Federal Reserve, Treasury and Federal Insurance Corporation have announced that depositors will have access to all their deposits from today, and we are awaiting news regarding our remaining cash deposits and cash in transit* at SVB UK as they are now subject to the Bank of England's bank insolvency procedures in the UK.
*$36 million held in SVB UK; $18 million currently in transfer out of SVB UK but pending confirmation.
For further information, please contact:
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Trustpilot Group plc Derek Brown, Head of Investor Relations Peter Holten Mühlmann, CEO Hanno Damm, CFO
https://investors.trustpilot.com
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Teneo James Macey White, Ed Cropley, Matt Low
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+44 (0) 207 353 4200
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About Trustpilot:
Trustpilot was founded in 2007 with a vision to create an independent currency of trust.
A digital platform that brings businesses and consumers together to foster trust and inspire collaboration. We are free to use, open to everybody and built on transparency.
Trustpilot hosts reviews to help consumers shop with confidence and deliver rich insights to help businesses improve the experience they offer. The more consumers use our platform and share their own opinions; the richer the insights we offer businesses; and the more opportunities they must earn the trust of consumers, from all around the world.
Trustpilot has over 900 employees and is headquartered in Copenhagen, with operations in London, Edinburgh, New York, Denver, Melbourne, Berlin, Amsterdam, and Milan.