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    2023-04-21

LR 6.3 Revenue earning track record requirement

LR 6.3.1RRP

1The historical financial information required under LR 6.2.1R and LR 6.2.3R must:

  1. (1)

    demonstrate that the applicant has a revenue earning track record; and

  2. (2)

    put prospective investors in a position to make an informed assessment of the business for which admission is sought.

LR 6.3.2GRP
  1. (1)

    1The purpose of LR 6.2.1R(2), LR 6.2.3R, and LR 6.3.1R is to ensure that the applicant has representative financial information throughout the period required by LR 6.2.1R(1) and LR 6.2.3R and to assist prospective investors to make a reasonable assessment of what the future prospects of the applicant’s business might be. Investors are then able to consider the applicant’s historical financial information in light of its particular competitive advantages, the outlook for the sector in which it operates and the general macro economic climate.

  2. (2)

    The FCA may consider that an applicant does not have representative historical financial information and that its equity shares are not eligible for a premium listing if a significant part or all of the applicant’s business has one or more of the following characteristics:

    1. (a)

      a business strategy that places significant emphasis on the development or marketing of products or services which have not formed a significant part of the applicant’s historical financial information;

    2. (b)

      the value of the business on admission will be determined, to a significant degree, by reference to future developments rather than past performance;

    3. (c)

      the relationship between the value of the business and its revenue or profit-earning record is significantly different from those of similar companies in the same sector;

    4. (d)

      there is no record of consistent revenue, cash flow or profit growth throughout the period of the historical financial information;

    5. (e)

      the applicant’s business has undergone a significant change in its scale of operations during the period of the historical financial information or is due to do so before or after admission;

    6. (f)

      it has significant levels of research and development expenditure or significant levels of capital expenditure.