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Ultimate Sports Grp (CTNA)

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Thursday 26 September, 2019

Ultimate Sports Grp

Interim Results

RNS Number : 7082N
Ultimate Sports Group PLC
26 September 2019
 

Ultimate Sports Group PLC

("USG" or the "Company")

26 September 2019

Interim Results

 

Ultimate Sports Group plc ("USG" or the "Company"), the AIM listed investment company, is pleased to announce its interim results for the six months ended 30 June 2019.

 

CHAIRMAN'S STATEMENT AND CHIEF EXECUTIVE'S REVIEW

 

For the six months ended 30 June 2019 we are reporting a total comprehensive loss of £15,258 (30 June 2018: loss £45,552).

 

USG's cash balances as at 30 June 2019 were £440,233, falling £95,096 during the period (31 December 2018: £535,329) mainly due to an increase in trade receivables of £163,340, offset in part by a £75,092 increase in trade payables.  

 

The directors are not recommending the payment of a dividend.

 

FUNDRAISE

 

Subsequent to the half year end, we reported on 15 July 2019, that the Company had raised £290,000 (before legal expenses) by the issue of 2,000,000 new shares at 14.5p per share.

 

SUBSTANTIAL SHAREHOLDERS

 

The Company continues to welcome the involvement of Mr. Richard Bernstein as a strategic shareholder following the fundraising announced in February 2018 and appreciates the additional confidence he has shown in the Company as reflected by recent purchases in the open market that increased his shareholding from 27.02% to 29.82% of the total issued share capital of the Company.

 

APPOINTMENT OF A NEW CHIEF EXECUTIVE

 

The Company was also pleased to announce the appointment of Matthew Farnum-Schneider as Chief Executive Officer effective from 1 August 2019. The Board considers that his appointment will spearhead the corporate development of the Group.

 

PANTHEON LEISURE PLC ("PANTHEON")

 

USG holds 85.87% of the issued share capital of Pantheon which in turn owns 100% of the operating business of Pantheon's Sport and Leisure division. Pantheon's sport and leisure division is the owner of Sport in Schools Limited also known as The Elms Sport in Schools ("ESS").

 

Pantheon as a group made a profit of £62,533 for the six months ended 30 June 2019 (30 June 2018: £43,913).

 

SPORT IN SCHOOLS LIMITED ("SSL")

 

SSL increased turnover in the period by 18% to £943,392 (30 June 2018: £800,705). The increase is attributable to business expansion.  This increased turnover resulted in an improved profit margin due to operational gearing and a divisional 41% increase in profit to £113,130 (30 June 2018: £80,059).

 

CORPORATE GOVERNANCE CODE

 

In accordance with the AIM Rules regarding corporate governance our website reflects our compliance with (and explains any departures from) the guidance set out in the QCA Corporate Governance Code.

 

PROSPECTS

 

As outlined in the Report and Accounts for the year ended 31 December 2018, we continue to pursue, from a firm financial base, a strategy of developing SSL and to carefully appraise any and all acquisition opportunities, including those proposed by Mr. Bernstein.  Led by Matthew Farnum-Schneider, the Board is currently reviewing a number of acquisition opportunities operating in high growth markets. These opportunities are at various stages of discussion and there is no guarantee that they will result in a transaction. The Company will provide further updates as and when appropriate.

 

 

R.L. Owen (Chairman)                                                                                                                         25 September 2019

 

 

 

 

 

Unaudited

 6 months ended 30 June 2019

 

 

Audited

Year ended 31 December 2018

 

 

 

 

 

 

 

 

 

£

 

£

 

£

 

 

 

 

 

 

 

Revenues

 

943,433

 

800,836

 

1,547,006

Cost of revenues

 

(464,540)

 

(385,274)

 

(725,638)

 

 

 

 

 

 

 

 

 

478,893

 

415,562

 

821,368

 

 

 

 

 

 

 

Administrative expenses

 

(494,734)

 

(461,285)

 

(965,943)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

(15,841)

 

(45,723)

 

(144,575)

 

 

 

 

 

 

 

Finance income

 

583

 

171

 

718

Finance costs

 

-

 

-

 

(628)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before taxation

 

(15,258)

 

(45,552)

 

(144,485)

Taxation

 

-

 

-

 

-

Loss after taxation

 

(15,258)

 

(45,552)

 

(144,485)

 

Attributable to:

 

 

 

 

 

 

Owners of the company

 

(24,091)

 

(51,755)

 

(149,121)

Non- controlling interests

 

8,833

 

6,203

 

4,636

 

 

(15,258)

 

(45,552)

 

(144,485)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive loss attributable to:

 

 

 

 

 

 

Owners of the company

 

(24,091)

 

(51,755)

 

(149,121)

Non- controlling interests

 

8,833

 

6,203

 

4,636

 

 

(15,258)

 

(45,552)

 

(144,485)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted total comprehensive

   

 

 

 

 

 

loss per share

 

(0.0007)p

 

(0.0018)p

 

(0.0051p)

 

 

  Unaudited

as at 30 June

  Unaudited

as at 30 June

Audited

As at 31 December

 

2019

2018

2018

 

 

 

 

 

£

£

    £

 

 

 

 

Non- current assets

 

 

 

Goodwill and patents

59,954

60,054

59,954

Property, Plant and equipment

89,158

13,713

13,168

Total non-current assets

149,112

73,767

73,122

 

 

 

 

Current assets

 

 

 

Trade and other receivables

253,100

205,684

89,760

Cash and cash equivalents

440,233

479,722

535,329

Total current assets

693,333

685,406

625,089

 

 

 

 

Total assets

842,445

759,173

698,211

 

 

 

 

Current liabilities

 

 

 

Trade and other payables

325,871

218,397

239,911

Borrowings

-

1,000

-

Total current liabilities

325,871

219,397

239,911

 

 

 

 

Non-current liabilities

 

 

 

Trade and other payables

65,208

-

-

Total liabilities

391,079

219,397

239,911

 

 

 

 

 

 

 

 

Net assets

451,366

539,776

458,300

 

 

 

 

Equity

 

 

 

 

 

 

 

Share capital

2,388,664

2,388,664

2,388,664

Share premium

782,031

775,374

782,031

Merger reserve

325,584

325,584

325,584

Retained earnings

(2,994,883)

(2,892,550)

(2,979,116)

 

 

 

 

Equity attributable to owners of the company

501,396

597,072

517,163

 

 

 

 

Non-controlling interest

(50,030)

(57,296)

(58,863)

 

 

 

 

 

 

 

 

Total Equity

451,366

539,776

458,300

 

 

 

 

 

Six months ended

30 June 2019

 

Six months ended

30 June 2018

 

Year ended

31 December

2018

 

 

 

£

 

£

 

£

Total equity at the beginning of period/year

 

 

 

458,300

 

 

95,908

 

 

95,908

 

 

 

 

 

 

 

 

Issue of shares

 

 

-

 

489,420

 

537,500

 

 

 

 

 

 

 

 

Share issue costs

 

 

-

 

-

 

(41,423)

 

 

 

 

 

 

 

 

Share based payments

 

 

5,400

 

-

 

10,800

 

 

 

 

 

 

 

 

Loss for the period/year

 

 

(15,258)

 

(45,552)

 

(144,485)

 

 

 

 

 

 

 

 

Impact of change in accounting policy

 

 

2,924

 

-

 

-

At end of period/year

 

 

451,366

 

539,776

 

458,300

 

 

Six months ended

30 June 2019

Six months ended

30 June 2018

Year ended 31 December

2018

 

£

£

£

Cash flow from all activities:

 

 

 

Loss before taxation

(15,258)

(45,552)

(144,485)

 

 

 

 

Adjustments for:

 

 

 

Depreciation and amortisation

4,105

3,557

7,607

Finance income

(583)

(171)

(718)

Finance costs

-

-

628

Share based payments

5,400

-

10,800

Loss on disposed tangible assets

-

-

1

 

 

 

 

Operating cash flow before working capital movements

(6,336)

(42,166)

(126,167)

 

 

 

 

Increase in receivables

(163,340)

(136,703)

(20,779)

Increase in payables

75,092

44,736

66,250

Net cash absorbed by operations

(94,584)

(134,133)

(80,696)

 

 

 

 

Cash flow from Investing activities

 

 

 

Property, plant and equipment acquired

(1,095)

(4,347)

(7,753)

Finance income

583

171

718

 

 

 

 

Net cash used in investing activities

(512)

(4,176)

(7,035)

 

 

 

 

Financing activities

 

 

 

Proceeds from share issues

-

489,420

496,077

Finance costs

-

-

(628)

Repayment of borrowings

-

(1,000)

(2,000)

Net cash from financing activities

-

488,420

493,449

 

 

 

 

 

 

 

 

Net (decrease)/increase in cash and cash equivalents

(95,096)

350,111

405,718

 

 

 

 

Cash and cash equivalents and bank overdraft at the beginning of the period/year

535,329

129,611

129,611

 

 

 

 

Cash and cash equivalents at the end of the period/year

440,233

479,722

535,329

 

1.     General information

 

Ultimate Sports Group plc (the "Company") is a company domiciled in England and its registered office address is 30 City Road, London EC1Y 2AB.  The condensed consolidated interim financial statements of the Company for the six months ended 30 June 2019 comprise the Company and its subsidiaries (together referred to as the "Group").

 

The condensed consolidated interim financial statements do not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.

 

The financial information for the year ended 31 December 2018 has been extracted from the statutory accounts. The auditors' report on those statutory accounts was unqualified and did not contain a statement under Section 498(2) or (3) of the Companies Act 2006.  A copy of those accounts has been filed with the Registrar of Companies.

 

The Group has presented its results in accordance with the measurement principles set out in International Financial Reporting Standards as adopted by the EU ("IFRS") using the same accounting policies and methods of computation as were used in the annual financial statements for the year ended 31 December 2018 with exception of the application of new accounting standards. As permitted, the interim report has been prepared in accordance with the AIM rules for companies but is not compliant in all respects with IAS34 'Interim Financial Statements'.

 

In the current financial year, the Group has adopted IFRS 16 Leases which has resulted in the Group recognising a right-of-use asset and lease liability for all contracts that are or contain a lease.  The Group has applied the modified retrospective adoption method, with no restatement of prior year comparatives. Full disclosure of the accounting policy in respect of IFRS 16 will be made in the consolidated annual financial statements of the Group for the year ending 31 December 2019.  The impact of the adoption of IFRS 16 has resulted in an increase in opening tangible fixed assets of £79,000, offset by an increase in opening liabilities of £79,000, due to the recognition of the lease assets and liabilities. 

 

The condensed consolidated interim financial statements do not include all the information required for full annual financial statements and therefore cannot be construed to be in full compliance with IFRS.

 

The condensed consolidated interim financial statements were approved by the board and authorised for issue on 25 September 2019.

 

2.     Business segment analysis

 

Six months ended 30 June 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sports and leisure

 

Social media website

 

Consolidated

 

 

 

 

 

 

 

 

Results from operations

 

 

£

 

£

 

£

 

 

 

 

 

 

 

 

Revenue

 

 

943,392

 

41

 

943,433

 

 

 

 

 

 

 

 

Segment operating profit/(loss)

 

 

113,130

 

(12,493)

 

100,637

 

 

 

 

 

 

 

 

Group operating expenses

 

 

 

 

 

 

(116,478)

 

 

 

 

 

 

 

 

Operating loss

 

 

 

 

 

 

(15,841)

 

 

 

 

 

 

 

 

Finance income

 

 

 

 

 

 

583

 

 

 

 

 

 

 

 

Loss before tax from all activities

 

 

 

 

 

 

(15,258)

 

 

 

 

 

 

 

 

Taxation

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

Operating loss after tax

 

 

 

 

 

 

(15,258)

 

 

 

 

 

 

 

Six months ended 30 June 2018

 

 

 

 

 

 

Sports and leisure

 

Social media website

 

Consolidated

Results from operations

£

 

£

 

£

 

 

 

 

 

 

Revenue

800,705

 

131

 

800,836

 

 

 

 

 

 

Segment operating profit/(loss)

80,059

 

(20,079)

 

59,980

 

 

 

 

 

 

Group operating expenses

 

 

 

 

(105,703)

 

 

 

 

 

 

Operating loss

 

 

 

 

(45,723)

 

 

 

 

 

 

Finance income

 

 

 

 

171

 

 

 

 

 

 

Loss before tax from all activities

 

 

 

 

(45,552)

 

 

 

 

 

 

 

 

Year Ended 31 December 2018

 

 

 

 

 

 

 

 

 

 

Sports and leisure

 

Social media website

 

Consolidated

Results from operations

 

 

£

 

£

 

£

 

 

 

 

 

 

 

 

Revenue

 

 

1,546,733

 

273

 

1,547,006

 

 

 

 

 

 

 

 

Segment operating profit/(loss)

 

 

100,754

 

(32,399)

 

68,355

 

 

 

 

 

 

 

 

Group operating expenses

 

 

 

 

 

 

(212,930)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

 

 

 

 

 

(144,575)

Finance revenues

 

 

 

 

 

 

718

Finance costs

 

 

 

 

 

 

(628)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before tax from all activities

 

 

 

 

 

 

(144,485)

 

 

 

 

 

 

 

 

 

3.             Basic and diluted loss per share

 

Comprehensive loss per share for the six months period ended 30 June 2019 has been calculated on the comprehensive loss attributable to owners of the company of £24,091 and on the weighted average number of shares in issue during the period of 33,561,639.

 

Comprehensive loss per share for the six months period ended 30 June 2018 has been calculated on the comprehensive loss attributable to owners of the company of £51,755 and on the weighted average number of shares in issue during the period of 29,344,788.

 

Comprehensive loss per share for the year ended 31 December 2018 has been calculated on the comprehensive loss attributable to owners of the company of £149,121 and on the weighted average number of shares in issue during the year of 29,174,996.

 

For the six month period ended 30 June 2019, six month period ended 30 June 2018 and for the year ended 31 December 2018, share options and warrants to subscribe for shares in the company are anti-dilutive and therefore diluted earnings per share information is the same as the basic loss per share.

 

* * ENDS * *

 

For further information, please visit www.ultimatesportsgroup.me or contact:

 

Ultimate Sports Group PLC

Richard Owen (Executive Chairman)

 

+44 (0)7721 613613

 

St Brides (Financial PR)

Catherine Leftley, Gaby Jenner

 

+44 (0)20 7236 1177

Cantor Fitzgerald Europe (Nomad and Broker)

David Foreman

 

+44 (0)20 7894 7000

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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