Decentralised finance incubator AQRU PLC (AQSE:AQRU) switched to before-tax losses of £5.94mln in 2022 compared to profits on £300,000 in the previous year, equating to losses per share of 0.49p.
The Aquis-listed group’s net assets amounted to £6.56mln as at 31 October 2022, with cash and cash equivalents of £4.84mln compared to £10.38mln in 2021.
DeFi and cryptocurrency in general suffered significant losses and high-profile collapses in the financial year, which inevitably impacted AQRU’s financial performance, but chief executive Philip Blows remained optimistic of the industry’s future prospects.
“AQRU has done well to weather a tricky year for the digital assets industry. We saw many of our largest competitors end operations due to poor risk management in volatile markets,” said Blows, who noted that the group has taken steps to protect its customers’ assets and its own balance sheets.
Cost-cutting measures have also been implemented, with a view to reducing operational run rate by approximately 69% in the current financial year.
Blows continued: “We’ve also taken steps to diversify our long-term revenue-generation strategies by leveraging our team’s expertise across the wider fintech sector – including launching the London Carbon Exchange.
“We remain vigilant of any emerging risks in the sector and will continue with a cautious stance in 2023 remaining ready to capitalise on any emerging opportunities.”
Period highlights included launching AQRU.io, an online retail platform for cryptocurrency assets, and a partnership with Blimp Technologies Inc. in order to pursue opportunities in the underserved crypto-mortgage market.