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Weather Lottery(The) (BOX)

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Friday 27 April, 2012

Weather Lottery(The)

Half Yearly Report

RNS Number : 2284C
Weather Lottery PLC (The)
27 April 2012
 



The Weather Lottery plc

("TWL" or the "Company")

 

Half-Yearly Report for the period ended 31 January 2012

 

27 April 2012

 

Chairman's Statement

 

The half-year figures reflect an improved, but still difficult trading period for the company. The half-year loss of £201,000 is an improvement on the figures for the same period one year ago (loss for the six months to 31 January 2011: £321,000) showing a reduction in loss on that period of approximately 37%. However it is still evidence of a difficult trading period as the Company has continued to resolve historic problems in the gaming and poker divisions.

 

The core lottery business continues to perform adequately. The Board believes there is still considerable scope for expansion of this business, however the constraints placed on cash by the loss making and non performing assets has restricted the opportunity to engage in a full development programme. The Board hopes to accelerate this process if, as expected, losses continue to fall at the Company level. Our largest client for lottery services, The National Trust, have indicated a wish to renew their contract and if possible expand the operations in fund raising. This is positive news and a testament to the efforts of the staff to provide a good service to customers, even in difficult times.

 

I believe the figures for the full year should again show an improvement with further significant reduction in losses as a result of settlements achieved by the company in respect of certain non-performing gaming contracts and the gradual running down of the business in FC Betz Ltd, the internet gaming site. The Devilfish Poker site has been re-organised to reduce month on month losses at present. The Board would consider the disposal of both businesses if a suitable exit is identified.

 

Soccerdome Limited, the five-a-side football business in Nottingham, has been affected by a proposal by Nottingham City Council (the "Council") to commit to a major development of the site adjacent to the football pitches. Such a development would directly affect our existing site. A final decision by the Council on whether or not to proceed has not yet been taken but is expected soon. The delay in the decision over the proposed improvements is due to the possibility that the site of our lease may be affected by the development. The creation of a major leisure centre at the site with state-of-the-art athletics, swimming and other sporting facilities is likely to significantly enhance the usage and value of the Company's five-a-side centre. A further announcement will be made once  a decision has been made by the Council. In the meantime the actual performance of the facility has been disappointing as the Company has postponed the required refurbishment  of the pitches until after a decision has been made by the Council. The Company has resolved to take legal action against the vendors of Soccerdome Limited for breach of warranty at the time of sale.

 

The Company is currently reviewing its Board composition and will make further announcements as and when appropriate.  

 

The Right Honourable Lord E T Razzall CBE

Chairman

 

 

For further information contact:

 

The Weather Lottery PLC                     begin_of_the_skype_highlighting              end_of_the_skype_highlighting                  01905 621123      

Website www.theweatherlottery.com

 

Allenby Capital Limited (Nomad)                 begin_of_the_skype_highlighting              

Nick Harriss/James Reeve                                                      020 3328 5658end_of_the_skype_highlighting

 

SVS Securities (Broker)     begin_of_the_skype_highlighting              end_of_the_skype_highlighting

Ian Callaway/Alex Mattey                                                       020 7638 5600      

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED INCOME STATEMENT

 






Period ended


     Period

      ended

Year ended






31 January


31 January


31 July






2012


2011


2011




Notes


(unaudited)


(unaudited)


(audited)






£'000


£'000


£'000











Revenue





               634


                 668


               1,343

Cost of Sales





              (429)


                (461)


                (573)











Gross Profit





                205


                  207


                  770

Administrative expenses





              (401)


                 (521)


              (1,545)











Profit from operations





              (196)


                (314)


                 (775)

Finance expenses





                  (5)


                     (7)


                   (14)

Finance income





                    -


                       -


                       -











Profit before taxation





               (201)


                (321)


                (789)

Taxation





                    -


                       -



Attributable to equity holders





               (201)


                (321)


                (789)











Earnings per share:










Basic (loss)/profit per ordinary share



1


(0.05)p


(0.14)p


(0.30)p











Fully diluted (loss)/profit per ordinary share





(0.05)p


(0.13)p


(0.27)p





















All results derive from continuing operations.




















There are no recognised income or expenses other than the loss for the period.







 

 

All results derive from continuing operations.

 

There are no recognised income or expenses other than the loss for the period.

 

 

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEET

 






Period ended


     Period

     ended

Year ended






31 January


31 January


31 July






2012


2011


2011




Notes


(unaudited)


(unaudited)


(audited)






£'000


£'000


£'000

ASSETS










Non-current assets










Property, plant and equipment





                490


                    64


                  503

Goodwill





               467


               572


            467

Intangible assets





                 73


                30


               73
















             1,030


                 666


               1,043

Current assets










 

Inventories







 

                   8


                      2

Trade and other receivables





               208


               365


             209

Cash and cash equivalents





                 16


                 32


               74
















               224


               405


             285











Total Assets





             1,254


                1,071


               1,328











LIABILITIES










Current liabilities










Trade and other payables





               902


               722


             874

Bank and other borrowings





                38


                    -


               38
















               940


               722


             912

Non-current liabilities










Bank and other borrowings





39


                    -


               49
















               979


               722


            961











Total Assets/(Liabilities)





               275


               349


             367











EQUITY










Capital and reserves attributable to equity










holders










Called up share capital



3


               403


               268


             380

Share premium account





           1,319


               859


          1,233

Retained earnings





         (1,447)


            (778)


      (1,246)











Total equity





              275


                349


             367

 

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 




Share


Share


Retained






Capital


Premium


Earnings


Total




£'000


£'000


£'000


£'000





















Balance at 1 August 2010



        186


                          476


                (457)


                  205

Issue of new shares in the period



         82


                          383




                  465

Loss for the period







       (321)


      (321)











Balance at 31 January 2011



       268


                          859


                (778)


                 349

Shares issued less costs



    112


              374


           


        486

Loss for the period







(468)


(468)                       











Balance at 31 July 2011



       380


                       1,233


             (1,246)


                  367

Issue of new shares in period



         23


                            86




                  109

Loss for the period







       (201)


     (201)





















Balance at 31 January 2012



       403


                        1,319


             (1,447)


                  275

 

 

  

 

 

 

 

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

 






Period

ended


    Period

     ended

Year ended






31-Jan


31-Jan


31-Jul






2012


2011


2011




 Notes


(unaudited)


(unaudited)


(audited)






£'000


£'000


£'000





















Net cash generated (used in)/from operations



4


               (145)


                  (22)


                 (121)

Interest and financing costs





                  (5)


               (7)


          (14)











Net cash(outflow) from operating activities





               (150)


                  (29)


                 (135)

Cash flow from investing activities:










Acquisition of subsidiary undertakings







                  (40)


                   (18)

Purchase of intangible assets







             (73)


           (63)

Purchase of property, plant and equipment





               

(7)


                       -


                    (4)











Net cash generated from investing activities





                           (7)


                 (113)


                  (85)

Financing










Net proceeds from issue of shares





              

 109


                  126


                 236

Proceeds of new bank and other loans





                             




                     18

Repayment of bank and other loans





               

(10)




                    (8)











Net cash from financing activities





               

 99


                  126


                 246











(Decrease)/increase in cash and cash equivalents:









(Decrease)/increase in cash and cash equivalents





              

 (58)


                   (16)


                    26

Cash and cash equivalents at beginning of period




                

 74


                    48


                    48





















Cash and cash equivalents at end of period





                

 16


                    32


                    74











Comprising of:










Cash and cash equivalents per the balance sheet





                             16


                    32


                    74

Less:










Bank overdraft





                    -


          -


             -











Cash and cash equivalents for cashflow statement purposes




                             16


                    32


                    74

 

 



 

NOTES TO THE INTERIM FINANCIAL REPORT

 

1.   Accounting policies

 

Basis of Accounting and Preparation

These interim results for the six months ended 31 January 2012 have been prepared using the historical cost and fair value conventions on the basis of the accounting policies set out below.  This interim report has been prepared in accordance with IFRS's, it is not in accordance with IAS 34 and therefore is not fully compliant with IFRS.

 

These interim results have been prepared under the historical cost convention. Areas where other bases are applied are identified in the accounting policies below.

 

The financial information set out in this interim report does not constitute statutory accounts as defined in the Companies Act 2006. The Company's statutory financial statements for the year ended 31 July 2011 have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified, did not include a reference to any matters which the auditor drew attention by way of emphasis without qualifying their report and did not contain a statement under section 498(2) or (3) of the Companies Act 2006.

 

This announcement contains certain forward-looking statements with respect to the operations, performance and financial position of the Group.  By their nature, these statements involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated.  The forward-looking statements reflect knowledge and information available at the date of the preparation of this announcement and the Company undertakes no obligation to update these forward-looking statements.  Nothing in this Interim Financial Report should be construed as a profit forecast.

 

The results for the six months ended 31 January 2012 were approved by the Board on 27 April 2012.

 

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries) made up to 31 January and 31 July each year.  Control is achieved where the Company has the power to govern the financial and operating policies so as to obtain benefits from its activities.

 

Business combinations

The purchase method of accounting is used for all acquired businesses as defined by IFRS3 - Business Combinations.

 

As a result of the application of the purchase method of accounting, goodwill is initially recognised as an asset being the excess at the date of acquisition of the fair value of the purchase acquisition consideration plus directly attributable costs of acquisition over the net fair values of the identifiable assets, liabilities and contingent liabilities of the subsidiaries acquired.

Goodwill arising on acquisitions before the date of transition to IFRS is subject to alternative policies for valuation as described below.

 

All intra-group transactions, balances, income and expenses are eliminated on consolidation.



 

Intangible assets

An intangible asset is considered identifiable only if it is separable or arises from contractual or other legal rights, regardless of whether those rights are transferable or separable from the entity or from other rights and obligations.

 

For intangible assets with finite useful lives, amortisation is calculated so as to write off the cost of an asset less its estimated residual value over its economic life as follows:

 

Software development              - 10 years

Website development costs      -  3 years

 

In addition to amortisation, at each balance sheet date the Group reviews the carrying amounts of its intangible assets to determine whether there is any indication that those assets have suffered an impairment loss.  If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).  Recoverable amount is the higher of fair value less costs to sell and value in use.  An impairment loss is recognised as an expense immediately, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.  Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years.

 

Financial instruments

Financial assets and financial liabilities are recognised on the Group's balance sheet when the Group becomes a party to the contractual provisions of the instrument.

 

Trade receivables

Trade receivables do not carry any interest and are stated at their nominal value as reduced by appropriate allowances for estimated irrecoverable amounts.

 

Financial liability and equity

Financial liabilities and equity instruments are classified according to the substance of the contractual agreements entered into.  An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities.  Equity instruments are recognised at the amount of proceeds received net of costs directly attributable to the transaction.  To the extent that those proceeds exceed the par value of the shares issued they are credited to a share premium account.

 

Trade payables

Trade payables are not interest-bearing and are stated at their nominal value.

 

Goodwill

Goodwill arising on consolidation represents the excess cost of acquisition over the group's interest in the fair value of the identifiable assets and liabilities of a subsidiary, associate or jointly controlled entity at the date of acquisition.

 

Goodwill is recognised as an asset and reviewed for impairment at least annually. Any impairment is recognised immediately in the income statement and is not subsequently reversed.  Goodwill arising on acquisition before the date of transition to IFRS has been retained at the previous UK GAAP amounts subject to being tested for impairment at that date.

 

On disposal of a subsidiary, associate or jointly controlled entity, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.

 

Revenue recognition

Revenue represents takings received for entry into the prize draws. The revenue is recognised upon receipt of the money for the period that the draws take place, net of VAT and other sales-related taxes.



 

Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

 

The charge for taxation is based on the taxable profit or loss for the period and takes into account taxation deferred because of timing differences between the treatment of certain items for taxation and accounting purposes.  Current tax is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events that result in an obligation to pay more, or a right to pay less, tax in the future have occurred at the balance sheet date.  Timing differences are differences between the Group's taxable profits and its results as stated in the financial information that arises from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial information.

 

A net deferred tax asset is regarded as recoverable and therefore recognised only when, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits from which the reversal of the underlying timing differences can be deducted.

 

Deferred tax is measured at the tax rates that are expected to apply in the periods in which the timing differences are expected to reverse based on tax rates and laws that have been enacted or substantively enacted at the balance sheet date.  Deferred tax is measured on a non-discounted basis.

 

 

2.   Earnings per ordinary share

The calculation of basic earnings per share is based on the results and weighted average number of ordinary shares as follows:

 






Period ended


 Period ended

    Year ended






31-Jan


31-Jan


31-Jul






2012


2011


2011






(unaudited)


(unaudited)


(audited)






£'000


£'000


£'000











Attributable to equity





               (201)


                (321)


                (789)











Weighted average number of










ordinary shares:




















Basic      





  398,923,455


227,915,849


266,479,621











Fully diluted





  422,923,455


251,915,849


290,479,621

 

The fully diluted number of ordinary shares includes 24 million options, to subscribe for Ordinary shares of 0.1p each, which were issued in June 2010.  None of these options have been exercised in the period.

 

 

 

3.   Share capital            

 






As at


As at


As at






31-Jan


31-Jan


31-Jul






2012


2011


2011






£'000


£'000


£'000











Issued and fully paid:










402,627,159 ordinary shares of 0.1p each





               403


                 268


                 380

 

 

 

4.    Cash used in Operations      

 






Period ended


   Period

    ended

Year

ended






31-Jan


31-Jan


31-Jul






2012


2011


2011






£'000


£'000


£'000











(Loss)/Profit from operations





               (201)


                (314)


                 (775)

Depreciation of tangible fixed assets





                 26


                     13


                       7

Amortisation of intangible assets





                    -


                       -


                  130

Negative goodwill





                    -


                       -


                (123)

Share based payments





                    -


                       -


                       -

(Increase) in inventories







                    (6)


                       -

Decrease/(increase) in debtors





                    1


                  (36)


                  120

(Decrease)/increase in creditors





                (28)


                  321


                  520





















Cash generated (used in)/from operations





               (145)


                  (22)


                 (121)

 

 

5.   Interim Financial Report

The unaudited interim financial report, which is the responsibility of the directors and was approved by them on 27 April 2012 does not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006.

 

This report is available on The Weather Lottery's website at www.theweatherlottery.com. Copies are available from the Company at its registered office:

 

25-27 Hagley Mews, Hall Drive, Hagley, Stourbridge, DY9 9LQ.

 


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