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Game Group PLC (GMG)

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Tuesday 27 September, 2011

Game Group PLC

The Game Group plc Interim Results

RNS Number : 9624O
Game Group PLC
27 September 2011
 



The GAME Group plc

 

THE GAME GROUP PLC, Europe's leading retailer of pc and video games products, today announces Interim Results for the 26 weeks ended 31 July 2011.

 

Commenting on the results, CEO Ian Shepherd said:

 

"2011 has been a very tough year for the video games industry. A combination of a cyclical low point in the industry itself and unprecedented macro-economic conditions have led to significant market revenue declines. 

GAME Group has increased market share in this difficult climate as we have focussed on delivering our strategy. Nonetheless, the impact of the wider market can be seen on our first half results.

Like many other retailers, we believe that trading conditions will remain tough for the remainder of the year, and have set our plans accordingly.  We are determined to again outperform a difficult market this Christmas, by using our unique specialist position to give customers the very best choice and value.

 

For the future, we are investing for a different video games market, with new games consoles coming to market and customers exploring new ways of playing games, including digital; online; and cloud-based gaming. The Group, through its Dedicated to Gaming strategy initiatives, is taking a leading role in these developments in order to benefit from market recovery in the coming years."

 

Key points

Financial:

·          Group lfl down 9.9%, reflecting tough market conditions

·          Increased market share in period

·          Focus on generating cash and strong balance sheet in second half

·          Interim dividend maintained

·          Store closures on track

 

Operations

·          Strategic progress, including accelerating digital sales and robust preowned business

·          High quality Christmas software line-up

·          Prepared for key Christmas selling period

 

Financial Overview

All figures in £'m (unless stated)

26 Weeks ended

31 July 2011

26 weeks ended

31 July 2010  

Group turnover

558.8

624.6

Gross profit margin (%)

24.3

26.0

Operating loss before non-recurring costs

(45.0)

(16.1)

Non-recurring costs*

(3.0)

(2.7)

Operating loss

(48.0)

(18.8)

Loss before non-recurring costs and tax

(48.5)

(18.8)

Loss before tax

(51.5)

(21.5)

Basic earnings per share before non-recurring costs (pence)

(9.86)

(3.66)

Basic earnings per share (pence)

(10.72)

(4.44)

Interim dividend per share (pence)

1.88

1.88

Trading store numbers  (including franchises)

1,287

1,338

Trading square footage (sq. ft. thousands)

1,344

1,394

 

H1 sales analysis

26 weeks to 31 July 2011

Total sales (%)

Lfl sales (%)

Group

(10.5)

(9.9)

UK & Ireland stores

(12.0)

(10.0)

International stores

(10.2)

(11.4)

Group Online

2.3

*Non-recurring costs relate to strategic store change programme

 

Current trading sales analysis

34 weeks to 24 September 2011

Total sales (%)

Lfl sales (%)

Group

(11.4)

(10.4)

UK & Ireland stores

(13.3)

(11.2)

International stores

(10.1)

(10.8)

Group Online

0.4

 

 

Enquiries:

 

The GAME Group plc:

+44 (0)1256 784566

Ian Shepherd, Group Chief Executive


Ben White, Group Finance Director


Simon Soffe, Investor Relations and Group Communications Director




Brunswick:

+44 (0)20 7404 5959

Jonathan Glass, James Olley, Natalia Marisova


 

 

- ENDS -

 

 

 

CEO Statement:

 

Overview

 

2011 has been a very tough year for the video games industry. A combination of a cyclical low point in the industry itself and unprecedented macro-economic conditions have led to significant market revenue declines.

GAME Group has increased market share in this difficult climate as we have focussed on delivering our strategy. Nonetheless, the impact of the wider market can be seen in our first half results.

We have two imperatives. In the short term, we need to deliver results even in a tough market. In the longer term, we need to enhance our position as the industry evolves and returns to growth.

For the key Christmas period, our unique specialist retailing skills and multi channel profile mean that we are positioned to take a leading share on the high quality line-up of new games. We also have a strong balance sheet and focus on cash generation. We will continue to drive cost and working capital disciplines across the business.

For the future, we are investing for a different video games market, with new games consoles coming to market and customers exploring new ways of playing games, including digital; online; and cloud-based gaming. The Group, through its Dedicated to Gaming strategy initiatives, is taking a leading role in these developments in order to benefit from market recovery in the coming years.

 

Market

 

Between 1 February and 31 July, the markets in which we operate showed revenue declines of 15.5%, with hardware down 13.7% and software down 16.5%. 

 

Very few major software titles launched in the period, with only LA Noire achieving sales in excess of £20m in the UK.  In hardware, the Nintendo 3DS launched satisfactorily, but slightly behind market expectations.

 

In the first weeks of the second half, a number of significant titles have launched including Deus Ex: Human Revolution, Dead Island and Gears of War 3.  Sales of these titles were broadly in line with market expectations, confirming that good quality titles still attract strong consumer demand. Additionally, Nintendo and Sony have reduced their hardware prices, enabling all three manufacturers to compete at mass-market price points.

 

As is always the case, the next 10 weeks will be extremely important for the market as they represent some 40% of annual revenues.  A range of strong games will launch, with 15 AAA titles still to come before December, and market data suggests that preorder volumes are ahead of last year for the key titles including: Call of Duty: Modern Warfare 3, Battlefield 3, FIFA 12, Assassin's Creed Revelations, Forza 4, Batman: Arkham City, and The Legend of Zelda: Skyward Sword

 

Looking further ahead to 2012, the market is looking forward to the launch of the Sony Playstation Vita handheld and the Nintendo Wii U console in Europe.

 

Review of H1 performance:

 

Results

 

Group revenue for the 26 weeks ended 31 July 2011 decreased by 10.5% to £558.8m with lfl sales down by 9.9%.  In the UK and Ireland, total sales decreased by 12.0% and lfl sales were down by 10.0%.  In our International operations, total sales decreased by 10.2% and lfl sales fell by 11.4%. 

 

Our preowned business continues to attract value-conscious consumers, and sales declined by only 1.8% and margins increased to 39.8%. Continued strategic focus on our online operations meant that sales increased by 2.3%.

 

Total gross margin has declined by 170 basis points, as we responded to a competitive market by investing in customer loyalty and promotional deals. 

 

Costs remain a critical focus for us, and are broadly flat year on year. We have closed overlapping stores, rationalised working hours in our stores and head office, and minimised our discretionary spend. We have worked hard to make these savings, £7.5 million in the underlying costs of the business, and these actions are offsetting investment on our strategic priorities.

 

The non-recurring costs relate to the store closure programme and one-off operational activities to implement our strategy.

 

Our net debt position as at 31 July 2011 was £91.0m (2010: £63.5m), reflecting the lower profitability of the Group. Working capital and capital expenditure remain in line with expectation.

 

Strategy and Operations

 

Given the quiet market, we focused on driving sales through tactical initiatives such as hardware bundle offers (for example Wii consoles for £99.99 when bought with any chart game), enhanced CRM activities and our preowned programme. 

 

Our long term strategic activities are progressing well but are at an early stage in their development.  In the period we have delivered the following important milestones:

 

Multichannel:  GAME.co.uk, our main ecommerce site, was relaunched on a new web platform in late August. It is a significant improvement on our previous site.  In the year to date market share remains at 19%, but we expect to see improvement in the remainder of the year.  Our stated ambition is to treble our 2010 online market share by 2013, and we remain on track to achieve this.

 

Right stores:  Stores are the hub of our customer offering in every market, but we continue to review the most efficient shape and size of our portfolios.  We have closed net 26 stores since the start of the year, and continue to have a high transfer rate of 60-70% of customers from a closing store to our next nearest location or to one of our websites.  Converting footfall into sales remains a key focus for our store teams.  Whilst we are making progress, we are not yet achieving our stated aim of growing conversion by 1% this year, with an actual run rate of 18.3% (2010: 18.3%). As the busy software release schedule kicks in during the second half, we remain confident that we will deliver a better performance. With a short average lease profile of 4.6 years, we have the ability to change our portfolio to match consumer behaviour.

 

Unique Product Range:  Digital sales across the Group are accelerating rapidly: up more than 40% in the year to date. Our digital product range is expanding further, and all of our UK stores are skilled at offering customers a wide choice of downloadable titles across the three principle digital formats: Xbox Live, Sony PlayStation Network, and pc and browser games. Customers can use cash, loyalty points and traded-in products to pay for their digital items, which is not possible online. We are the first and only retailer in Europe to offer this breadth of range.

 

We have also added new digital partners to our range, and on 22 September we became the first games retailer in the world to announce a partnership with OnLive, the games on demand service. This will be the first subscription service that we have introduced to our product range, and demonstrates our commitment to offering customers a wide range of ways to purchase and play video games.

 

Our customers will be able to buy an exclusive version of 18 of the top 20 software titles from our stores and websites this Christmas, as well as three exclusive console models.

 

Novel ways to buy:  Our preowned business continues to demonstrate strong revenues and margins. The GAME gift card service has been relaunched in the UK, giving better functionality for customers and broadening our reach, and is available in other retailers such as Clinton Cards. We are also examining a way to expand our Reward card scheme so that loyalty card points can be used to purchase digital content online, and we will provide further details as the service develops.

 

Strong customer relationships:  Our loyalty schemes already have 18 million members and continue to grow, with 1 million customers joining this year. We have also seen the number of transactions using a loyalty card increase from 42% to 53%.  We have overhauled our CRM activities to ensure that we are communicating effectively with customers to build our relationship further. The CRM team has been expanded, and we are analysing our data in new ways to ensure customers receive the most relevant information.

 

Current Trading and Outlook for the Full Year

 

In the 34 weeks to 24 September 2011, the Group's total sales were down by 11.4% and lfl sales were down by 10.4%.  In the UK and Ireland, total sales and lfl sales were down by 13.3% and 11.2% respectively.  In our International business, total sales were down by 10.1% and lfl sales on a constant currency basis were down 10.8%. Online sales were up by 0.4%. 

 

The current shape of both the wider economy and the pc and video games market leaves us under no illusion about the challenges we face in the remainder of the year.

 

To deliver our revenue and margin targets, we will need to achieve year on year revenue growth in the second half, and a better gross margin than the first half.  We are clear about the context of these requirements. In the market, we will need to see the major titles launching well and consumers' confidence returning at Christmas.

 

In addition to that, GAME will need to deliver:

·          A leading share on all product launches. We plan to achieve this by focusing on our wide range of exclusive products, and trade-in deals.

·          Increased gross margins, driven by our launch plans for the major titles, attractive Christmas console bundles and increased preowned sales.

·          Continued progress in our strategic ambitions.

 

The performance of the new releases in the last three weeks indicates that we can deliver on these plans.

 

Since we last updated the market, nothing has fundamentally changed our outlook for the full year, other than wider economic conditions. Good preorder volumes indicate that customers are responding to the strength of the second half launch slate, our margin driving activities are working, and tight cost management is being maintained. Therefore we continue to target revenues down -3% to 0%, which will be a significant overperformance of the market as a whole, gross margins down 100bps, and cost savings now at levels of £6m to £9m.

 

Cashflow and Dividend

 

To protect ourselves against the backdrop of difficult trading conditions, we are taking decisive action to maintain the robust balance sheet and cash position we have always enjoyed. We anticipate that total capital expenditure for the current year will now be lower than previously guided at around £15m, and expect working capital improvements of around £15m in the full year as we improve our stock cover profile from 6.5 to 6 weeks.  Given the first half trading performance, average net debt in 2011/12 financial year is expected to be £55m.   

 

Combined with our relentless focus on costs, the refinancing we announced in February to provide us over the next three years with a £130m RCF and a £30m amortising term loan, gives us a sound foundation from which to deliver our second half plans.

 

Given our cash and balance sheet position, and our confidence in the Group's strategic direction, the Board proposes a flat interim dividend of 1.88p per share.

 

Summary

 

Like many other retailers, we believe that trading conditions will remain tough for the remainder of the year, and have set our plans accordingly.  We are determined to again outperform a difficult market this Christmas, by using our unique specialist position to give customers the very best choice and value.

 

The strategic progress that we have made in the last year gives us a stronger proposition with which to tackle the short term challenges, while also building us a firm foundation for the longer term as our market changes.

 

 

Ian Shepherd

Chief Executive

 

 

 

 

Statement of Directors' Responsibilities

 

 

 

The Directors confirm, to the best of their knowledge and belief, that this condensed consolidated set of interim financial statements have been prepared in accordance with IAS 34 as adopted by the European Union, and that the interim management report herein includes a fair review of the information required by the DTR 4.2.7 and DTR 4.2.8 namely:

 

·          an indication of important events that have occurred during the six months ended 31 July 2011 and their impact on the condensed consolidated financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and

·          material related party transactions in the six months ended 31 July 2011 and any material changes in the related party transactions described in the last Annual Report.

 

A copy of the Company's 2011 Annual Report and Accounts is available on GAME's website www.gamegroup.plc.uk.

 

 

By order of the Board

 

 

 

Ben White

Director

 

Unity House

Telford Road

Basingstoke

RG21 6YJ

 

27 September 2011

 

 

 

Unaudited Condensed Consolidated Statement of Comprehensive (Loss)/Income

 

for the six months ended 31 July 2011

 

 



Six months

Six months

Year



ended

ended

ended



31 July

31 July

31 January



2011

2010

2011



Unaudited

Unaudited

Audited


Note

£'000

£'000

£'000

Revenue

2

558,800

624,550

1,625,034

Cost of sales


422,825

 462,461

 1,197,638

Gross profit


135,975

162,089

427,396

Other operating expenses

 3

183,992

 180,901

398,921






Operating (loss) / profit before non-recurring costs


(45,035)

(16,106)

43,208

Non-recurring costs

3

(2,982)

(2,706)

(14,733)






Operating (loss) / profit


(48,017)

(18,812)

28,475

Finance income


73

161

375

Finance costs


(3,522)

 (2,822)

(5,745) 

(Loss) / Profit before taxation


(51,466)

(21,473)

23,105

Taxation

 4

14,227

 6,072

(7,452) 

(Loss) / Profit for the year attributable to equity holders of the parent


(37,239)

 (15,401)

 15,653

Other comprehensive income:





Exchange differences on translating foreign operations


2,850

(3,531)

2,921

Differences on valuation of Swaps under hedge accounting


(260)



Deferred income tax on share-based payments


-

-

370

Income tax on share-based payments


-

-

 37

Other comprehensive income / (expense) for the period, net of tax


2,590

(3,531) 

 3,328

Total comprehensive (expense) / income for the period attributable to equity holders of the parent


(34,649)

(18,932) 

 18,981

Earnings per share - basic

6

(10.72)p

(4.44)p

4.51p

                                - diluted

 6

(10.72)p

  (4.44)p 

4.51p 

 

All amounts relate to continuing activities

 

 

 

Unaudited Condensed Consolidated Balance Sheet

 

as at 31 July 2011

 

 




Restated




As at

As at

As at



31 July

31 July

31 January



2011

2010

2011



Unaudited

Unaudited

Audited


Note

£'000

£'000

£'000

Non-current assets





Property, plant and equipment

7

98,222

123,907

109,122

Intangible assets

8

211,750

210,000

209.875

Deferred tax asset


3,647

 3,614

3,647



313,619

337,521 

322,644

Current assets





Inventories


144,787

144,168

149,915

Trade and other receivables

9

46,229

44,712

48,538

Current tax debtor


10,597

832

-

Cash and cash equivalents


40,964

 48,995

151,243



242,577

238,707

349,696

Total assets


556,196

 576,228

672,340

Current liabilities





Trade and other payables

10

133,562

156,897

294,570

Current portion of long-term borrowings

11

109,241

96,784

15,875

Leasehold property incentives


1,485

1,347

1,869

Current tax liabilities


-

 -

7,755



244,288

 255,028

320,069

Non-current liabilities





Long-term borrowings

11

22,722

15,714

15,559

Leasehold property incentives


9,746

10,246

9,718



32,468

 25,960

25,277

Total liabilities


276,756

 280,988

345,346

Net assets


279,440

 295,240

326,994

Equity attributable to equity holders of the parent





Share capital

13

17,373

17,361

17,373

Share premium account

14

47,086

46,950

47,086

Capital redemption reserve


2,248

2,248

2,248

Shares held in trust


(3,629)

(4,199)

(3,629)

Hedge Accounting Reserve


(260)

-

-

Merger reserve


76,907

76,907

76,907

Foreign exchange reserve


33,145

23,843

30,295

Retained earnings


106,570

 132,130

156,714

Total equity


279,440

 295,240

326,994

 

 

Approved and authorised for issue by the Board on 27 September 2011

 

 

Ben White

Director

 

 

 

Unaudited Condensed Statement of Changes in Equity

 

for the six months ended 31 July 2011

 

 


Share

Share

Capital

Hedge

Shares

Merger

Retained

Foreign

Total


Capital

Premium

Redemption

Accounting

held in

Reserve

Earnings

Exchange





Reserve

Reserve

Trust



Reserve



£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

At 1 February 2011

17,373

47,086

2,248

-

(3,629)

76,907

156,714

30,295

326,994

Exchanges differences

-

-

-

-

-

-

-

2,850

2,850

on translation of foreign










currency net investment










in subsidiaries










Differences on valuation of Swaps under hedge accounting

-

-

-

(260)

-

-

-

-

(260)

Income tax on share-based










Payments










- Deferred tax

-

-

-

-

-

-

-

-

-

- Current tax

-

-

-

-

-

-

-

-

-

Other comprehensive










income/(expense)

-

-

-

(260)

-

-

-

2,850

2,590

Loss for the period

-

-

-


-

(37,239)

-

(37,239)

Total comprehensive

 

 

 

 

 

 

 

 

 

income/(expense)

-

-

-

(260)

-

-

(37,239)

2,850

(34,649)

Issue of shares

-

-

-

-

-

-

-

-

-

Purchase of shares

-

-

-

-

-

-

-

-

-

Exercise of options

-

-

-

-

-

-

-

-

-

Dividends paid

-

-

-

-

-

-

(13,422)

-

(13,422)

Share-based payment expense

-

-

-

-

-

-

517

-

517

At 31 July 2011

17,373

47,086

2,248

(260)

(3,629)

76,907

106,570

33,145

279,440

 

 

 

 

Unaudited Condensed Statement of Changes in Equity

 

for the six months ended 31 July 2010

 

 

 


Share

Share

Capital

Shares

Merger

Retained

Foreign

Total


Capital

Premium

Redemption

held in

Reserve

Earnings

Exchange





Reserve

Trust



Reserve



£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

At 1 February 2010

17,333

46,662

2,248

(3,395)

76,907

164,426

27,374

331,555

Exchanges differences

-

-

-

-

-

-

(3,531)

(3,531)

on translation of foreign









currency net investment









in subsidiaries









Income tax on share-based









payments









- Deferred tax

-

-

-

-

-

-

-

-

- Current tax

-

-

-

-

-

-

-

-

Other comprehensive









expense

-

-

-

-

-

-

(3,531)

(3,531)

Loss for the period

-

-

-

-

(15,401)

-

(15,401)

Total comprehensive

 

 

 

 

 

 

 

 

expense

-

-

-

-

-

(15,401)

(3,531)

(18,932)

Issue of shares

28

288

-

-

-

-

-

316

Purchase of shares

-

-

-

(1,925)

-

-

-

(1,925)

Exercise of options

-

-

-

1,121

-

(1,121)

-

-

Dividends paid

-

-

-

-

-

(13,541)

-

(13,541)

Share-based payment credit

-

-

-

-

-

(2,233)

-

(2,233)

At 31 July 2010

17,361

46,950

2,248

(4,199)

76,907

132,130

23,843

295,240

 

 

 

Audited Condensed Statement of Changes in Equity

 

for the year ended 31 January 2011

 

 

 


Share

Share

Capital

Shares

Merger

Retained

Foreign

Total


Capital

Premium

Redemption

held in

Reserve

Earnings

Exchange





Reserve

Trust



Reserve



£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

At 1 February 2010

17,333

46,662

2,248

(3,395)

76,907

164,426

27,374

331,555

Exchange differences

-

-

-

-

-

-

2,921

2,921

on translation of foreign









currency net investment









in subsidiaries









Income tax on share-based









payments









- Deferred tax

-

-

-

-

-

370

-

370

- Current tax

-

-

-

-

-

37

-

37

Other comprehensive

-

-

-

-

-

407

2,921

3,328

income

-

-

-

-

-

-



Profit for the period

-

-

-

-

15,653

-

15,653

Total comprehensive









income

-

-

-

-

-

16,060

2,921

18,981

Issue of shares

40

424

-

-

-

-

-

464

Purchase of shares

-

-

-

(1,926)

-

-

-

(1,926)

Exercise of options

-

-

-

1,692

-

(1,692)

-

-

Dividends paid

-

-

-

-

-

(20,073)

-

(20,073)

Share-based payment credit

-

-

-

-

-

(2,007)

-

(2,007)

At 31 January 2011

17,373

47,086

2,248

(3,629)

76,907

156,714

30,295

326,994

 

 

 

Unaudited Condensed Consolidated Statements of Cash Flows

 

for the six months ended 31 July 2011

 

 

 




Restated




Six months

Six months

Year



Ended

ended

ended



31 July

31 July

31 January



2011

2010

2011



Unaudited

Unaudited

Audited


Note

£'000

£'000

£'000

Cash flow from operating activities





Operating (loss) / profit


(48,017)

(18,812)

28,475

Equity-settled share-based payment expense/(credit)


517

(2,233)

(2,007)

Depreciation and amortisation


14,884

14,737

30,521

Impairment of goodwill


-

-

3,354

Loss / (profit) on disposal of non-current assets


149

(689)

4,800

Market value movement on financial instrument


314

 -

5



(32,153)

(6,997)

65,148

Decrease in trade and other receivables


2,310

3,604

(236)

Decrease in inventories


5,127

31,878

27,750

Decrease in trade and other payables


(160,915)

(102,334)

38,623

Increase / (decrease) in leasehold incentives


(356)

 204

198

Cash (absorbed by) / generated from operations


(185,987)

(73,645)

131,483

Finance costs paid


(3,522)

(2,822)

(5,745)

Corporation tax paid


(4,157)

 (7,685)

(14,359)

Net cash from operating activities


(193,666)

 (84,152)

111,379

Cash flows from investing activities





Purchase of property, plant and equipment


(1,712)

(8,021)

(9,763)

Purchase of intangible assets


(3,192)

(2,752)

(7,909)

Proceeds from sale of equipment


1,110

1,544

2,396

Finance income received


73

 161

375

Net cash used in investing activities


(3,721)

 (9,068)

(14,901)

Cash flows from financing activities





Proceeds from issue of share capital


-

316

464

Shares purchased for Trust


-

(1,925)

(1,926)

Payment of Term Loan


(33,340)

(8,330)

(8,330)

Proceeds from Term Loan


30,000

-

-

Receipt /(payment) of other long-term borrowings


103,944

79,709

(1,023)

Payment of finance lease liabilities


(74)

(142)

(475)

Dividends paid


(13,422)

 (13,541)

(20,073)

Net cash used in financing activities


87,108

56,087 

(31,363)

Net decrease in net cash and cash equivalents


(110,279)

(37,133)

65,115

Cash and cash equivalents at beginning of period


151,243

 86,128

86,128

Cash and cash equivalents at end of period

12 

40,964

48,995 

151,243






 

 

Notes to the Interim Results

 

 

1    General

 

The GAME Group plc is a company incorporated, domiciled and registered in England and Wales and is listed on the London Stock Exchange.  The address of its registered office is Unity House, Telford Road, Basingstoke, RG21 6YJ.

 

Basis of preparation

The financial information presented in this Interim Report has been prepared in accordance with the accounting policies the Group expects to be applicable at 31 January 2012.  The Interim Report has been prepared in accordance with those IFRS and IFRIC interpretations issued and effective as at the time of preparing the statement, and with the Disclosure and Transparency Rules of the Financial Services Authority and with IAS 34, Interim Financial Reporting, as adopted by the European Union.  In line with this standard, the financial statements are referred to as condensed.

 

The results for the six months ended 31 July 2011 and the comparative results for the six months ended 31 July 2010 are unaudited.  The financial information for the year ended 31 January 2011 does not constitute the full statutory accounts for that period.  The Annual Report and Financial Statements for the year ended 31 January 2011 have been filed with the Registrar of Companies.  The Independent Auditors' Report on the Annual Report and Financial Statements for the year ended 31 January 2011 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

 

Accounting policies

The accounting policies used in preparing the Interim Report are as set out in the statutory accounts for the year ended 31 January 2011.  There have been no changes in accounting estimates.

 

Estimates and judgements

The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

 

Significant items subject to such assumptions and estimates include the useful lives of assets, the measurement and recognition of provisions, the recognition of deferred tax assets and liabilities for potential corporation tax. The most critical accounting policies in determining the financial condition and results of the Group are those requiring the greatest degree of subjective or complex judgements. These relate to Droit au Bail; lease costs; the valuation of goodwill and acquired intangible assets; share-based payments and taxation.  These also relate to inventory valuation where the most complex area of judgement is in respect of any obsolescence provision required.  These are assessed based on the stock of each item compared to demand.

 

The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

 

Changes in accounting policies

In the current year, the Group has revised its policy for hedge accounting.  The Group uses derivative financial instruments to hedge its exposure to cash flow interest rate risks. Derivatives are initially recognised at fair value on the date on which the derivative contract is entered into and are subsequently re-measured at fair value.

 

Derivatives are classified either as derivatives in effective hedges or held for trading.  It is anticipated that, generally, all hedging arrangements will be 'highly effective' within the meaning of IAS 39 and that the criteria necessary for applying hedge accounting will be met.  Hedges are assessed on an ongoing basis to ensure they continue to be effective.

 

The gain or loss on the portion of an instrument that qualifies as an effective hedge of cash flow interest rate risk is recognised directly in other comprehensive income.  The gain or loss on derivative financial instruments which are classified as held for trading, because they are not effective hedges, is recognised in the income statement.

 

In the prior year, the Group revised its accounting policy for the classification of Droit au Bail (a type of French key money).   The balance of £32,533,000 at 31 January 2010 was previously classified within "Short leasehold land and property" as the payments confer onto the Group many rights similar to those associated with a leasehold.  These assets are assessed as having an indefinite useful life and the carrying value is tested for impairment.  In light of proposed amendments to accounting for leases, the nature of these assets has been reviewed and the accounting policy revised to classify Droit au Bail within Intangible Assets. 

 

There was no effect on the equity, or results of the Group arising from the revision of this policy.  The financial position and cash flows for the period to 31 July 2010 of the Group have been re-stated to show the revised disclosure within Non-current Assets.

 

 

 

Notes to the Interim Results

 

 

 

1    General (continued)

 

 

Adoption of new and revised standards

 

Standards and interpretations effective in the current period

In the current period the Group has adopted the following standards:

 

International Accounting Standards (IAS/IFRS)

Effective Date

IFRS 1

First-time adoption of IFRS amendment

01/07/2010

IAS 24

Related Party Disclosures amendment

01/01/2011


Improvements to IFRSs

Various




 

 

There has been no effect on the results, cash flows, financial position of the Group or their presentation as a result of the adoption of these standards.

 

 

Two interpretations issued by the International Financial Reporting Interpretations Committee are effective for the current year as follows:

 

International Financial Reporting Interpretations Committee (IFRIC)

Effective Date

IFRIC 19

Extinguishing Financial Liabilities with Equity Instruments

01/07/2010

IFRIC 14 and

The limit on a defined benefit asset, minimum funding requirements

 

IAS 19

and their interaction amendment

01/01/2011

 

 

 

 

 

 

The adoption of these Interpretations has not led to any changes in the Group's accounting policies.

 

 

 

Notes to the Interim Results (continued)

 

 

 

1    General (continued)

 

 

Standards and Interpretations in issue not yet adopted

 

The International Accounting Standards Board and the International Financial Reporting Interpretations Committee have issued the following standards and interpretations to be applied to financial statements with periods commencing on or after the following dates:

 

International Accounting Standards (IAS/IFRS)

Effective Date




IFRS 7*

Disclosure of transfers of financial assets amendment

01/07/2011

IFRS 1*

Severe hyperinflation and removal of fixed dates for first-time adopters

01/07/2011


amendment


IAS 12*

Deferred tax: recovery of underlying assets amendment

01/01/2012

IAS 1*

Presentation of Items of Other Comprehensive Income Amendment

01 /07/2012

IFRS 9*

Financial Instruments

01/01/2013

IFRS 10*

Consolidated Financial Statements

01/01/2013

IFRS 11*

Joint Arrangements

01/01/2013

IFRS 12*

Disclosure of Interests in Other Entities

01/01/2013

IFRS 13*

Fair Value Measurement

01/01/2013

IAS 27*

Separate Financial Statements Amendment

01/01/2013

IAS 28*

Investments in Associates and Joint Ventures Amendment

01/01/2013

IAS 19*

Employee Benefits Amendment

01/01/2013




 

 

 

*These standards are not endorsed by the EU at present.

 

The Directors do not anticipate that the adoption of these standards will have a material impact on the Group's financial statements in the period of initial application.

 

 

 

Notes to the Interim Results (continued)

 

 

 

2 Revenue, profit and net assets

 

Revenue, pre-tax profits and net assets all relate to the retail of pc and video game products and the Group's operations are organised and managed by geographic location only. Management consider the reportable operating segments in accordance with IFRS 8 to be split between the UK and Ireland Stores, International Stores, and Global Online. Management do not consider there to be any major individual customers of the Group.

 

Revenue by origin and destination are not materially different. Inter-segment transactions between operating segments are entered into on an arms-length basis in a manner similar to transactions with third parties.

 

The Group's business is seasonal with the key trading period being the Christmas season.

 

 

 


United Kingdom





and Ireland stores

International stores

Global

online

Total


Six months ended

Six months ended

Six months ended

Six months ended


31 July 2011

31 July 2011

31 July 2011

31 July 2011


Unaudited

Unaudited

Unaudited

Unaudited


£'000

£'000

£'000

£'000

Revenue

310,024

214,106

34,670

558,800

Cost of sales

229,700

159,432

33,693

422,825

Gross profit

80,324

54,674

977

135,975

Other operating expenses excluding





inter-segment expenses

(101,434)

(74,944)

(4,632)

(181,010)

Inter-segment expenses

-

-

-

-

Operating loss before non-recurring costs

(21,110)

(20,270)

(3,655)

(45,035)

Non-recurring costs

(2,297)

(685)

-

(2,982)

Operating loss

(23,407)

(20,955)

(3,655)

(48,017)

Net finance costs excluding inter-segment

(3,213)

(236)

-

(3,449)

Inter-segment finance costs

2,363

(2,363)

-

-

Taxation

6,793

6,636

798

14,227

Loss after tax

(17,464)

(16,918)

(2,857)

(37,239)

Other segmental information:





Goodwill and other intangibles

151,075

54,116

6,559

211,750

Other assets

127,380

209,970

7,096

344,446

Assets

278,455

264,086

13,655

556,196

Liabilities

(107,525)

(167,730)

(1,501)

(276,756)

Net assets

170,930

96,356

12,154

279,440

Capital expenditure

2,164

1,104

1,636

4,904

Depreciation and amortisation

7,505

5,546

1,833

14,884

Share-based payment expense

517

-

-

517

 

 

 

Notes to the Interim Results (continued)

 

 

 

2 Revenue, profit and net assets(continued)

 


United Kingdom





and Ireland stores

International stores

Global

online

Total


Six months ended

Six months ended

Six months ended

Six months ended


31 July 2010

31 July 2010

31 July 2010

31 July 2010


Re-stated

Unaudited

Re-stated

Unaudited

Re-stated

Unaudited

Re-stated

Unaudited


£'000

£'000

£'000

£'000

Revenue

 352,253

238,409

33,888

624,550

Cost of sales

(254,538)

(177,855)

(30,068)

(462,461)

Gross profit

97,715

60,554

3,820

162,089

Other operating expenses excluding





inter-segment expenses

(99,276)

(73,468)

(5,451)

(178,195)

Inter-segment expenses

-

-

-

-

Operating loss before non-recurring costs

(1,561)

(12,914)

(1,631)

(16,106)

Non-recurring costs

-

(2,706)

-

(2,706)

Operating loss

(1,561)

(15,620)

(1,631)

(18,812)

Net finance costs excluding inter-segment

(2,582)

(79)

-

(2,661)

Inter-segment finance costs

1,638

(1,638)

-

-

Taxation

3,112

2,613

347

6,072

Profit / (loss) after tax

607

(14,724)

(1,284)

(15,401)

Other segmental information:





Goodwill and other intangibles

141,577

59,039

9,384

210,00

Other assets

133,174

220,315

12,739

366,228

Assets

274,751

279,354

22,123

576,228

Liabilities

(96,564)

(173,814)

(10,610)

(280,988)

Net assets

178,187

105,540

11,513

295,240

Capital expenditure

1,260

3,074

6,439

10,773

Depreciation and amortisation

8,010

5,389

1,338

14,737

Share-based payment credit

(2,233)

-

-

(2,233)

 

 

 

Notes to the Interim Results (continued)

 

 

 

2 Revenue, profit and net assets (continued)

 

 

 


United Kingdom





and Ireland stores

International stores

Global

online

Total


Year ended

31 January

2011

Year ended

31 January

2011

Year ended

31 January

2011

Year ended

31 January

2011


Audited

Audited

Audited

Audited


£'000

£'000

£'000

£'000

Revenue

935,320

594,566

95,148

1,625,034

Cost of sales

(673,286)

(442,821)

(81,531)

(1,197,638)

Gross profit

262,034

151,745

13,617

427,396

Other operating expenses excluding





inter-segment expenses

(223,222)

(149,170)

(11,796)

(384,188)

Inter-segment expenses

3,619

(3,619)

-

-

Operating profit / (loss) before non-recurring costs

42,431

(1,044)

1,821

43,208

Non-recurring costs

-

(14,733)

-

(14,733)

Operating profit / (loss)

42,431

(15,777)

1,821

28,475

Net finance costs excluding inter-segment

(5,208)

(162)

-

(5,370)

Inter-segment finance costs

3,503

(3,503)

-

-

Taxation

(5,384)

(2,068)

-

(7,452)

Profit / (loss) after tax

35,342

(21,510)

1,821

15,653

Other segmental information:





Goodwill and other intangibles

155,693

53,584

598

209,875

Other assets

189,088

258,600

14,777

462,465

Assets

344,781

312,184

15,375

672,340

Liabilities

(143,482)

(201,500)

(364)

(345,346)

Net assets

201,299

110,684

15,011

326,994

Capital expenditure

8,222

5,032

4,418

17,672

Depreciation and amortisation

15,774

12,079

2,668

30,521

Impairment of goodwill

-

3,354

-

3,354

Share-based payment credit

(2,007)

-

-

(2,007)

 

 

 

Notes to the Interim Results (continued)

 

 

 

2 Revenue, profit and net assets (continued)

 



Six months



Six months




ended



ended




31 July



31 July




2011



2010




Total



Total




£'000

% of Total


£'000

% of Total

Revenue







Hardware


98,463

17.6


115,830

18.5

Software


212,781

38.1


 249,070

 39.9

New hardware and software


311,244

55.7


 364,900

 58.4

Preowned


168,366

30.1


171,497

27.5

Other


79,190

14.2


 88,153

 14.1

Total


558,800

100.0


 624,550

 100.0










Six months



Six months




ended



ended




31 July



31 July




2011



2010




Total



Total




£'000

% of Total


£'000

% of Total

Gross margin







New hardware and software


51,966

38.2


70,813

43.7

Preowned


66,990

49.3


66,100

40.8

Other


17,019

12.5


 25,176

 15.5

Total


135,975

100.0


 162,089

 100.0









































Six months

Six months






ended

ended






31 July

31 July






2011

2010






Total

Total






%

%

Gross margin







New hardware and software





16.7

19.4

Preowned




Other





21.5

 28.6

Total Group





24.3

 26.0

 

 

 

Notes to the Interim Results (continued)

 

 

 

2 Revenue, profit and net assets (continued)

 


Six months

Six months

Year


ended

ended

ended


31 July

31 July

31 January


2011

2010

2011


Unaudited

Unaudited

Audited


£'000

£'000

£'000

Revenue by territory




United Kingdom and Ireland

310,024

352,253

935,320

France

57,397

65,259

163,441

Iberia

108,970

115,092

300,823

Scandinavia

17,326

21,786

48,963

Australia

26,240

32,861

71,568

Czech Republic

4,173

 3,411

9,771

Total Stores

524,130

590,662

1,529,886

Total Online

34,670

 33,888

95,148

Total Revenue

558,800

 624,550

1,625,034


Number

Number

Number

Stores by territory




United Kingdom and Ireland

615

635

639

France

195

198

197

Iberia

292

287

287

Scandinavia

62

68

65

Australia

92

118

93

Czech Republic

30

 31

31


1,286

 1,337

1,312

Franchises




Australia

1

 1

1


1

 1

1


Sq ft

Sq ft

Sq ft

Trading square footage by territory




United Kingdom and Ireland

737,452

756,292

760,591

France

182,589

183,622

183,547

Iberia

238,971

236,988

236,389

Scandinavia

64,035

69,575

67,209

Australia

103,039

129,304

104,050

Czech Republic

18,021

 18,494

18,494


1,344,107

 1,394,275

1,370,280





 

 

 

Notes to the Interim Results (continued)

 

 

 

3 Other operating expenses

 

 

 

Six months

Six months

Year


ended

ended

ended


31 July

31 July

31 January


2011

2010

2011


Unaudited

Unaudited

Audited


£'000

£'000

£'000

Selling and distribution

152,472

156,306

316,078

Administrative expenses

31,520

24,595

82,843


183,992

180,901

398,921

 

Administrative expenses include non-recurring costs of £2,982,146 (2010 interim: £2,706,251; full year £14,732,620).  Current year non-recurring costs relate to strategic store change programme.  Prior year interim and full year non-recurring costs relate to the restructuring of the Australian and French businesses.

 

 

 

Notes to the Interim Results (continued)

 

 

4 Taxation

 

The UK corporation tax charge has been included at an underlying corporation tax rates in line with the previous year

 


Six months

Six months

Year


ended

ended

ended


31 July

31 July

31 January


2011

2010

2011


Unaudited

Unaudited

Audited


£'000

£'000

£'000

Current tax




UK corporation tax (credit) / expense

(14,140)

(7,249)

7,513

Adjustments in respect of prior periods

-

-

(5,182)

Overseas tax payable

(87)

1,177

4,784

Total current tax

(14,227)

(6,072)

7,115

Deferred tax

 

 


Current year movement

-

-

(641)

Change in tax rates

-

-

173

Prior year movement

-

-

805

Total deferred tax

-

-

337

Taxation on profit on ordinary activities

(14,227)

(6,072)

7,452

 

 

 

Notes to the Interim Results (continued)

 

 

5 Dividends

 

 

Six months

Six months

Year


ended

ended

ended


31 July

31 July

31 January


2011

2010

2011


Unaudited

Unaudited

Audited


£'000

£'000

£'000

Ordinary dividends



 

Final paid

13,422

13,541

13,541

Interim paid

-

-

6,532


13,422

13,541

20,073

 

The interim dividend in relation to the period ended 31 July 2011 of 1.88p per share (31 July 2010: 1.88p per share) was declared on 27 September 2011 and is payable on 17 November 2011 to shareholders on the register on 21 October 2011.  This dividend is therefore not included in the above.

 

 

 

Notes to the Interim Results (continued)

 

 

 

6 Earnings per share

 

The calculation of earnings per share for the six months ended 31 July 2011 is based on the loss after taxation of £37,238,599 (2010 interim: loss £15,400,763; full year profit £15,652,502). The calculation of basic earnings per share is based on a weighted average number of shares in issue during the period of 347,461,388 (2010 interim: 346,899,493; full year: 347,170,991).  The number of shares used in these calculations and the reconciliation of denominators used for basic and diluted earnings per share calculations is set out in the table below:

 

 






Effect of



Basic

share options

Diluted

31 July 2011

347,461,388

87,688

347,549,076

31 July 2010

346,899,493

156,558

347,056,051

31 January 2011

347,170,991

38,242

347,209,233

 

Additional disclosure has been provided in respect of earnings per share before non-recurring costs as the directors believe this gives a better view of ongoing maintainable earnings in the prior year.

 


As at

As at

As at


31 July

31 July

31 January


2011

2010

2011


Unaudited

Unaudited

Audited


Pence

Pence

Pence

Basic earnings per share

(10.72)

(4.44)

4.51

Non-recurring costs per share

0.86

0.78

4.24

Basic earnings per share before non-recurring costs

(9.86)

(3.66)

8.75

Diluted earnings per share

(10.72)

(4.44)

4.51

Non-recurring costs per share

0.86

0.78

4.24

Diluted earnings per share before non-recurring costs

(9.86)

(3.66)

8.75

 

 

There are 863,435 anti-dilutive share options in the current period (2010 interim: 653,297; full year 475,452).

 

 

 

Notes to the Interim Results (continued)

 

 

7 Property, plant and equipment

 


As at

As at

As at


31 July

31 July

31 January


2011

2010

2011


Unaudited

Unaudited

Audited



Restated



£'000

£'000

£'000

Cost




Balance brought forward

261,873

266,635

266,635

Additions

1,712

8,021

9,763

Disposals

(6,731)

(2,336)

(18,657)

Foreign exchange adjustment

2,670

 (1,541)

4,132

Balance carried forward

259,524

 270,779

261,873

Depreciation




Balance brought forward

152,751

138,047

138,047

Charge for the period

12,921

11,578

25,404

Disposals

(5,742)

(1,929)

(12,201)

Foreign exchange adjustment

1,372

 (824)

1,501

Balance carried forward

161,302

 146,872

152,751

Carrying amount

98,222

 123,907

109,122

 

 

 

Notes to the Interim Results (continued)

 

 

8 Intangible fixed assets

 


As at

As at

As at


31 July

31 July

31 January


2011

2010

2011


Unaudited

Unaudited

Audited



Restated



£'000

£'000

£'000

Cost




Balance brought forward

226,418

225,544

225,544

Additions

3,192

2,752

7,909

Disposals

(322)

(450)

(4,776)

Foreign exchange adjustment

1,012

(1,803)

(2,259)

Balance carried forward

230,300

226,043

226,418

Depreciation




Balance brought forward

16,543

12,876

12,876

Charge for the period

1,963

3,159

5,117

Disposals/impairments

(52)

-

(682)

Foreign exchange adjustment

96

8

(768)

Balance carried forward

18,550

16,043

16,543

Carrying amount

211,750

210,000

209,875

 

 

 

Notes to the Interim Results (continued)

 

 

9 Trade and other receivables

 






As at

As at

As at


31 July

31 July

31 January


2011

2010

2011


Unaudited

Unaudited

Audited


£'000

£'000

£'000

Amounts falling due within one year:




Trade receivables

11,752

13,895

11,660

Other receivables

15,457

12,123

14,852

VAT recoverable

632

1,616

-

Total trade and other receivables

27,841

27,634

26,512

Prepayments and accrued income

18,388

17,078

22,026


46,229

44,712

48,538

 

 

10 Trade and other payables

 

 






As at

As at

As at


31 July

31 July

31 January


2011

2010

2011


Unaudited

Unaudited

Audited


£'000

£'000

£'000

Amounts falling due within one year:




Trade payables

77,919

83,645

201,009

Other payables

8,011

11,021

9,619

Tax and social security costs

4,444

5,450

8,022

VAT payables

11,768

13,315

32,792

Accruals and deferred income

31,420

43,466

43,128


133,562

156,897

294,570

 

 

 

Notes to the Interim Results (continued)

 

 

11 Long-term borrowings

 

 


As at

As at

As at


31 July

31 July

31 January


2011

2010

2011


Unaudited

Unaudited

Audited


£'000

£'000

£'000

Current portion




Bank loans

109,167

96,424

15,727

Obligations under finance leases and hire purchase contracts

74

360

148


109,241

 96,784

15,875

Non-current portion




Bank loans

22,722

15,594

15,559

Obligations under finance leases and hire purchase contracts

-

 120

-


22,722

 15,714

15,559

 

 

12 Analysis of net (debt) / funds

 


As at

As at

As at


31 July

31 July

31 January


2011

2010

2011


Unaudited

Unaudited

Audited


£'000

£'000

£'000

Cash and cash equivalents 

40,964

48,995

151,243

Net cash and cash equivalents

40,964

48,995

151,243

Current portion of long-term borrowings

(109,241)

(96,784)

(15,875)

Long-term borrowings

(22,722)

(15,714)

(15,559)

 Net (debt) / funds

(90,999)

(63,503)

119,809

 

 

 

Notes to the Interim Results (continued)

 

 

13 Called-up share capital

 







2011

2010


£'000

Number

£'000

Number

Authorised





Ordinary shares of 5p

 24,000

480,000,000 

 24,000

480,000,000 

Allotted, called-up and fully paid





Ordinary shares of 5p

17,373

347,461,388

 17,361

347,213,312 

 

 

Shares issued

During the period, no (2010 interim: 554,145; full year: 802,221) shares were issued to employees exercising share options granted under various option schemes. The total consideration received on the exercise of these options was £nil (2010 interim: £315,879; full year: £464,158).

 

Trust shares

During the period no shares (2010 interim: 2,000,000; full year: 2,000,000) were purchased at a cost of £nil (2010 interim: £1,925,800; full year: £1,925,800). These shares are to be used wholly and exclusively to pay LTIP awards when they become due for payment.

 

Trust shares comprise 3,297,275 (2010 interim: 3,684,073; full year: 3,297,275) 5p ordinary shares. The market value of these shares at 31 July 2011 is £923,237 (2010 interim: £2,652,533; full year: £2,209,174).

 

 

14 Share Premium account

 


As at

As at

As at


31 July

31 July

31 January


2011

2010

2011


Unaudited

Unaudited

Audited


£'000

£'000

£'000

Amount subscribed for share capital in excess of nominal value




At 1 February

47,086

46,662

46,662

Arising on issue of shares during the year (net of expenses)

-

288

424


47,086

 46,950

47,086

 

 

15 Related party transactions

There were no related party transactions within the period.

 

 

 

Notes to the Interim Results (continued)

 

 

16 Principal risks and uncertainties

 

 

Risk at GAME

 

Our Board believes that recognising and managing risks is the key to an effectively run business.  The monitoring of risk is delegated to the Audit Committee which has tasked the business with capturing and reporting on risk in a consistent manner across the Group.  The methodology is both bottom up, with detailed risk reports on all operating matters being sent from each territory, and top down, with senior management identifying all risks that could potentially prevent us from delivering our agreed strategy.  Every identified risk is examined and mitigating activities are put in place.  A risk report is presented to the Audit Committee half yearly.

 

 

Risk Type

Impact

Risk Mitigation

Technology

 

Speed of change and growth of technology in the market place

 

 

 

 

The digital world is evolving quickly.  If we do not adapt to the changes we run the risk of failing to deliver a truly multichannel offering to our customers.

 

 

We are investing in the mobile and digital future to ensure we can serve our customers in whichever medium they wish to purchase games, be that digital download, web or in store.

Competition

 

The pc and video games market continues to be an attractive place to do business.  Our competition comes in many guises. A relatively new entrant to the games market is found in the mobile operators selling directly to consumers whilst supermarkets continue to discount heavily or run short-term loss leading campaigns on newly released products.  We also have our more traditional competition from other specialists and online players.

 

 

 

If we are unable to compete we run the risk of losing our customers and our market share.

 

 

 

We use a suite of specialist tools to give customers great value. We recognise that this is not always direct price cuts. 

 

This is where our position as a specialist in the market place must give us the edge.  We strive to find exclusive offerings for our customers that they cannot get anywhere else.  Our preowned offerings, trade-in promotions and the use of loyalty card points as currency allows our customers to enjoy popular and new products at great value.

Reputational

 

We have built up customer loyalty over many years.  GAME and Gamestation are trusted brands.  

 

Our customers demand that we stock the broadest range of products but trust us to sell those products appropriately.  Some of our video games, for instance, are age restricted and mis-selling is illegal.

 

Through our loyalty card programmes we have built up a valuable database of information about our customers.  Our customers give us personal information so that we can keep them up to date with offers and new releases of interest to them.  It is vital that this data is protected and secure.

 

 

 

Damage to our reputation could lead to loss of revenue and shareholder value.

 

 

We protect our reputation by ensuring that our staff are highly trained and know their obligations to protect and respect our customers.

 

We demand that our teams follow regular rigorous training programmes, and adhere to strict policies and procedures relating to age-rated products, and data protection.

 

 

 

Notes to the Interim Results (continued)

 

 

16 Principal risks and uncertainties (continued)

 

 

Risk Type

Impact

Risk Mitigation

Major Business Interruption

 

Like all businesses any disruption to our capacity to do business will affect our profitability.

All parts of our business, in every territory, have put together business continuity plans to ensure we are able to trade through challenges.  This was put to the test recently in the UK when adverse weather conditions close to Christmas threatened to disrupt our supply chains. Our processes worked, and business interruption was minimised.

People and Change

 

Business change cannot be delivered if we fail to attract, develop and retain the right people in the right roles.

Every aspect of the Group's reward and development programmes is regularly reviewed to ensure that it keeps pace with our business needs and market conditions.  Our Group HR Director works closely with the Remuneration Committee to ensure best practice across the Group.

 

 

 

 

Directors and advisers

 

Directors

 

Christopher Bell Non-Executive Chairman

 

Ian Shepherd Chief Executive

 

Ben White ACA Group Finance Director

 

Ishbel Macpherson Senior Non-Executive Director

 

Dana Dunne Non-Executive Director

Martin Davies Non-Executive Director

Russ Shaw Non-Executive Director

 

 

 

Secretary

 

Vivienne Hemming ACIS

 

Registered office

 

Unity House, Telford Road, Basingstoke RG21 6YJ

 

Stockbrokers

 

Deutsche Bank, Winchester House,

 

1 Great Winchester Street, London EC2N 2DB

 

Peel Hunt LLP, 111 Old Broad Street

London EC2N 1PH

 

Principal Bankers

 

The Royal Bank of Scotland plc,

Thames Valley Corporate Banking Centre,

Abbey Gardens, 4 Abbey Street, Reading RG1 3BA

 

Independent auditors

 

BDO LLP, 55 Baker Street,

 

London W1U 7EU

 

Registrars and transfer office

 

Capita Registrars, Northern House,

Woodsome Park, Fenay Bridge, Huddersfield HD8 0GA

 

Corporate website

 

www.gamegroup.plc.uk

 

Registered number

 

875835

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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