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Gaming Realms PLC (GMR)

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Wednesday 13 September, 2017

Gaming Realms PLC

Interim Results

RNS Number : 5674Q
Gaming Realms PLC
13 September 2017
 

Gaming Realms plc

 

(the "Company" or the "Group")

 

Interim results for the six months ended 30 June 2017

 

Group on track to deliver positive Adjusted EBITDA in full year
Adjusted EBITDA loss reduced significantly in H1

 

Gaming Realms plc, which creates, publishes and licenses next generation mobile games, today announces its interim results for the six months ended 30 June 2017.

 

Financial highlights:


H1 2017

£'000s

H1 2016

£'000s

Movement

%





Revenue** (excluding disposals)

15,692

14,923

5

Marketing expense

(6,475)

(9,524)

(32)

Adjusted EBITDA loss

(894)

(3,078)

(71)

EPS from continuing operations (pence)

(1.37)

(2.22)

(38)

Loss before tax from continuing operations

(4,062)

(5,808)

(30)





 

·      Like-for-like** revenue growth of 5% to £15.7m (H1/16: £14.9m) driven by the continued success from the Company's proprietary mobile platform ("Grizzly") and our own unique Slingo IP driven games, plus steady growth in social publishing, which contributed £4.0m (H1/16: £3.4m) of social gaming revenues in H1/17

·      Adjusted EBITDA loss reduced by 71% to £0.9m (H1/16: £3.1m), with Loss before Tax on continuing operations reducing by 30% to £4.1m (H1/17: £5.8m)

·      Continued execution in cost reductions, in particular marketing optimization on real money gaming, was 26% lower at £4.8m (H116: £6.5m), whilst revenues grew 5% to £10.7m (H1/16: £10.2m) and head count reduction of 28 staff through synergies in our social publishing for annualized costs saving of approximately £2.0m, reflecting both improved operational and marketing efficiency

 

Operational highlights:  

·      Launch of 'white label' real money gaming sites, dealornodealcasino.com (March 2017) and loveislandgames.com (June 2017) in partnership with Endemol and ITV respectively

·      Continued investment in product development, in line with the Group's strategy of highly focused investment in our games (with three games launched in the period), platform and player acquisition

·      Signed four licensing partnerships for distribution of our games on our Remote Game Server ("RGS") with Caesar's Interactive, Rush Street Interactive, Resorts Digital Gaming and Pala Interactive

 

Post-period end:

·      The Group has gone live in New Jersey with Resorts Digital Gaming and Rush Street Interactive

·      Remote game server to be launched with Pala Interactive, Caesars Interactive, Betfair and Bwin in New Jersey and Betvictor in Europe in H2 2017

·      Newly developed technical solutions for tighter monitoring of bonus abuse will improve average lifetime values on real money gaming

·      £1.1m raised from existing shareholders and management at 11p per share

·      The Company has appointed an adviser who is in discussions with a number of lenders to finance the repayment of the deferred consideration to Real Networks in December 2017

 

Outlook for 2017:

·      The Group is expected to be EBITDA positive for 2017 as a whole and significantly EBITDA positive in H2 2017

·      Real money gaming average daily revenue up 11% so far in Q3 2017 compared to same period in 2016

·      Social publishing is now EBITDA positive

 

Following significant cost optimization and continued growth in real money gaming while bringing the social publishing to profitability, the Group has successfully executed its strategic deliverables within its control for H1/17. Delays in 3rd party integrations of our RGS to other operators, particularly New Jersey and the UK in H1, will result in a reduction in our anticipated licensing revenue for the year. This, coupled with the earlier than previously forecast timing of the new Point of Consumption tax in H2/17, is likely to impact EBITDA for 2017. However, the Board remains confident that profitable growth will continue and these are simply short term timing issues.

 

Patrick Southon, Chief Executive, said:

 

"The Group has made significant progress towards profitability in the first half of 2017, with H1 losses reduced, the Board anticipates that the Group will be EBITDA positive for the year as a whole. 

 

Our strategy of focusing our resources and capital on real money gaming, whilst continuing to deliver content to other operators, is driving revenue growth. Additionally, our focus on synergies, cost management and reduction is driving improved profitability.

 

The Group has been successful in agreeing new B2B content licences for the Slingo Originals portfolio of games and has launched new real money gaming sites dealornodealcasino.com and loveislandgames.com in partnership with Endemol and ITV respectively.

 

Further progress is expected in the second half of 2017 across the business with the RGS partnerships with Resorts Digital Gaming and Rush Street Interactive becoming fully operational, the first European partnership with BetVictor recently launched and our game portfolio expanded."

 

 

- Ends -

 

For more information contact

 

Gaming Realms plc

Patrick Southon, CEO

Mark Segal, FD

 

 0845 123 3773

Peel Hunt LLP, Nomad and Broker

Dan Webster, George Sellar

 

020 7418 8900

 

Instinctif

Matthew Smallwood

020 7457 2020

 

 

About Gaming Realms

 

Gaming Realms creates and publishes innovative real money and social games for mobile, with operations in the UK, U.S and Canada. Through its market leading mobile platform and unique IP and brands, Gaming Realms is bringing together media, entertainment and gaming assets in new game formats. The Gaming Realms management team includes accomplished entrepreneurs and experienced executives from a wide range of leading gaming and media companies.

 

 

Business review

 

Overview

 

The Board is pleased to report that the Group has made further progress during the first half of the year during which it delivered revenues of £15.7m (H1/16: £16.6m,) and a reduction of £2.2m in Adjusted EBITDA loss to £0.9m (H1/16: £3.1m). The reduction in Adjusted EBITDA loss was primarily due to the Group's cost synergy execution and focused marketing strategy in the period, which included a reduction in marketing spend of £3.0m to £6.5m (H1/16: £9.5m).

 

Real money gaming

 

Our proprietary platform continues to be the focus of the Group's strategy with revenue growth of 5% to £10.7m (H1/16: £10.2m) despite the reduction in marketing spend and transactional costs (together representing 65% (H1/16: 86%) of revenue). The Group continues to invest heavily in platform and game development and player acquisition and engagement.

 

During the period, the Group have developed and launched three proprietary games on the Grizzly platform taking the Slingo Originals' portfolio of proprietary games to eleven from eight at 31 December 2016. Overall, the Group's own proprietary games have contributed 36% (H1/16: 21%) of gross gaming revenue.

 

Mobile content and delivery continues to drive game play on mobile devices with 87% (H1/16: 84%) of funded players using mobile devices.

 

Social publishing

 

The social publishing segment has shown improved performance with revenue up 16% to £4.0m (H1/16: £3.4m). This was led by the growth on Slingo Arcade which launched in December 2016. The Group focused marketing spend on its key apps which has also led to improved returns on investment with marketing spend as a percentage of revenue reducing to 42% from 57% in H1/16.

 

The Group continues to review its allocation of resources and investment. It has seen significant benefits from the integration of the social business in the period which resulted in its first EBITDA positive month in June 2017.

 

Licensing

 

During the period, the Group entered into four new licensing deals with Resorts Digital Gaming, Rush Street Interactive, Pala Interactive and Caesars Interactive. The licensing deals will allow us to expand our presence in New Jersey, where the Group will distribute its Slingo Originals proprietary games through the Group's RGS.

 

 

* EBITDA and adjusted EBITDA are non-GAAP measures. Adjusted EBITDA excludes acquisition, restructuring and other expenses, net foreign exchange gains and losses and share based payment charges.

** excludes disposed activities in the comparative period.

 

 

Consolidated statement of profit or loss and other comprehensive income

for the 6 months ended 30 June 2017

 

 

Note

6 months ended

30 Jun 17


6 months ended

30 Jun 16


12 months ended

31 Dec 16



£


£


£



Unaudited


Unaudited


Audited








Revenue

2

15,692,422


16,631,937


33,958,118








Marketing expenses


(6,475,090)


(9,524,423)


(14,810,915)

Operating expenses


(4,796,526)


(4,292,551)


(9,337,851)

Administrative expenses


(5,314,672)


(5,892,476)


(11,100,464)








Adjusted EBITDA*

(893,866)


(3,077,513)


(1,291,112)

Profit on disposal of digital marketing agency and third-party platform driven website properties


-


269,226


318,834

Restructuring costs


(60,689)


-


-

Share-based payments


(373,049)


(491,172)


(993,349)

Net foreign exchange (loss)/gain


(207,626)


78,749


273,695















EBITDA*


(1,535,230)


(3,220,710)


(1,691,932)















Amortisation of intangible assets

6

(2,487,333)


(1,772,822)


(3,979,941)

Depreciation of property, plant and equipment


(84,122)


(44,489)


(120,789)

Finance expense

3

(125,993)


(773,044)


(1,178,154)

Finance income

3

170,824


2,954


3,022















Loss before tax on continuing operations


(4,061,854)


(5,808,111)


(6,967,794)








Tax credit

4

305,405


146,456


272,451















Loss for the financial period attributable to owners of the parent


(3,756,449)


(5,661,655)


(6,695,343)








Other comprehensive income







Exchange (loss)/gain arising on translation of foreign operations


 (456,058)


1,076,941


1,836,352

 

Total other comprehensive (loss)/income


 

(456,058)


 

1,076,941


 

1,836,352








 

Total comprehensive loss


 

(4,212,507)

 


 

(4,584,714)

 


 

(4,858,991)

 

 

Loss attributable to:







Owners of the parent


(3,738,614)


(5,661,655)


(6,685,120)

Non-controlling interest


(17,835)


-


(10,223)



(3,756,449)


(5,661,655)


(6,695,343)








Total comprehensive (loss)/income attributable to:







Owners of the parent


(4,167,966)


(4,584,714)


(4,882,234)

Non-controlling interest


(44,541)


-


23,243



(4,212,507)


(4,584,714)


(4,858,991)

Loss per share







Basic and diluted (pence)

5

(1.37)


(2.22)


(2.55)








 

* EBITDA and adjusted EBITDA are non-GAAP measures. Adjusted EBITDA excludes acquisition, restructuring and other expenses, net foreign exchange gains and losses and share based payment charges.

 

 

Consolidated statement of financial position

as at 30 June 2017

 


Note

30 Jun 17


30 Jun 16


31 Dec 16



£


£


£

Assets


Unaudited


Unaudited


Audited

Non-current assets







Property, plant and equipment


337,154


208,144


373,307

Goodwill

6

16,251,518


16,074,077


16,545,864

Intangible assets

6

11,001,921


11,456,659


12,115,973

Available-for-sale investment

7

540,000


540,000


540,000

Other assets

8

164,303


152,000


152,000

















28,294,896


28,430,880


29,727,144















Current assets







Trade and other receivables

9

3,376,555


5,176,983


3,347,595

Cash and cash equivalents

10

1,103,373


2,999,358


2,616,267

















4,479,928


8,176,341


5,963,862















Total assets


32,774,824


36,607,221


35,691,006















Current liabilities







Trade and other payables

11

8,433,493


8,119,071


7,058,781

Deferred consideration


3,051,557


2,992,028


3,135,356

















11,485,050


11,111,099


10,194,137















Non-current liabilities







Deferred tax liability

4

835,252


1,240,228


1,202,889

Deferred consideration


-


2,826,572


-

















835,252


4,066,800


1,202,889















Total liabilities


12,320,302


15,177,899


11,397,026















Net assets


20,454,522


21,429,322


24,293,980















Equity







Share capital

12

27,413,329


26,163,329


27,413,329

Share premium reserve


87,095,455


85,890,455


87,095,455

Merger reserve


(67,673,657)


(67,673,657)


(67,673,657)

Foreign exchange reserve


1,979,080


1,682,487


2,408,432

Retained earnings


(28,520,145)


(24,633,292)


(25,154,580)








Total equity attributable to owners of the parent


20,294,062


21,429,322


24,088,979

Non-controlling interest


160,460


-


205,001















Total equity


20,454,522


21,429,322


24,293,980















 

 

Consolidated statement of cash flows

for the 6 months ended 30 June 2017

 


Note

6 months ended

30 Jun 17


6 months ended

30 Jun 16


12 months ended

31 Dec 16



£


£


£



Unaudited


Unaudited


Audited

Cash flows from operating activities







Loss for the period


(3,756,449)


(5,661,655)


(6,695,343)

Adjustments for:







Depreciation of property, plant and equipment

84,122


44,489


120,789

Amortisation of intangible fixed assets

6

2,487,333


1,772,822


3,979,941

Finance income

3

(1,513)


(2,954)


(3,022)

Finance expense

3

40,482


19,943


36,850

Movement in deferred and contingent consideration

3

(83,800)


753,101


1,141,304

Unrealised currency translation loss/(gain)


126,441


(69,290)


(191,548)

Income tax credit

4

(305,223)


(118,595)


(248,941)

Loss on disposal of property, plant and equipment


115


4,763


6,531

Profit on disposal of digital marketing agency and third-party platform driven website properties


-


(269,226)


(318,834)

Share-based payment expense


373,049


491,172


993,349















(Increase)/decrease in trade and other receivables


(60,960)


(1,173,661)


643,961

Increase in trade and other payables


1,374,712


3,899,165


2,759,244

Increase in other assets


19,697


-


-















Net cash from operating activities


298,006


(309,926)


2,224,281








Investing activities







Acquisition of subsidiary, net of cash acquired


-


-


18,759

Purchases of property, plant and equipment


(49,971)


(61,545)


(289,256)

Purchase of intangible assets

6

(1,739,245)


(1,878,994)


(3,969,611)

Proceeds from disposal of third-party platform driven website properties


-


1,200,000


1,200,000

Interest received


1,513


2,954


3,022















Net cash from investing activities


(1,787,703)


(737,585)


(3,037,086)








Financing activities







Proceeds of Ordinary Share issue

12

-


1,525,000


4,025,000

Issuance cost of shares


-


-


(45,000)

Payment of contingent consideration


-


-


(3,071,447)

Interest paid


(40,482)


(19,943)


(36,850)















Net cash from financing activities


(40,482)


1,505,057


871,703















Net (decrease)/increase in cash and cash equivalents


(1,530,179)


457,546


58,898

Cash and cash equivalents at beginning of period


2,597,465


2,516,820


2,516,820

Exchange gain on cash and cash equivalents

 

Cash and cash equivalents at end of period

 

 

10

17,385

 

1,084,671


5,424

 

2,979,790


21,747

 

2,597,465








 

 

 

Consolidated statement of changes in equity

for the 6 months ended 30 June 2017

 


Share capital

Share premium

Merger reserve

Foreign exchange reserve

Retained earnings

Total to equity holders of parent

Non-controlling interest

Total equity

 

 


£

£

£

£

£

£

£

£

 










 

1 January 2016

24,920,829

85,127,955

(68,393,657)

605,546

(19,462,809)

22,797,864

-

22,797,864

 

Loss for the period

-

-

-

-

(5,661,655)

(5,661,655)

-

(5,661,655)

 

Other comprehensive income

-

-

-

1,076,941

-

1,076,941

-

1,076,941

 










 

Total comprehensive income for the period

-

-

-

1,076,941

(5,661,655)

(4,584,714)

-

(4,584,714)

 










 










 

Contributions by and distributions to owners









 

Shares issued as part of capital raising

762,500

762,500

-

-

-

1,525,000

-

1,525,000

 

Shares issued as part of the consideration in a business combination

480,000

-

720,000

-

-

1,200,000

-

1,200,000

 

Share-based payment on share options

-

-

-

-

491,172

491,172

-

491,172

 










 










 

30 June 2016 (unaudited)

26,163,329

85,890,455

(67,673,657)

1,682,487

(24,633,292)

21,429,322

-

21,429,322

 










 










 

Loss for the period

-

-

-

-

(1,023,465)

(1,023,465)

(10,223)

(1,033,688)

 

Other comprehensive income

-

-

-

725,945

-

725,945

33,466

759,411

 










 

Total comprehensive income for the period

-

-

-

725,945

(1,023,465)

(297,520)

23,243

(274,277)

 










 










 

Contributions by and distributions to owners









 

Shares issued as part of capital raising

1,250,000

1,250,000

-

-

-

2,500,000

-

2,500,000

 

Cost of issue of Ordinary Share capital

-

(45,000)

-

-

-

(45,000)

-

(45,000)

 

Share-based payment on share options

-

-

-

-

502,177

502,177

-

502,177

 

Non-controlling interest on acquisition of subsidiary

-

-

-

-

-

-

181,758

181,758

 










 










 

31 December 2016

27,413,329

87,095,455

(67,673,657)

2,408,432

(25,154,580)

24,088,979

205,001

24,293,980

 










 










 

Loss for the period





(3,738,614)

(3,738,614)

(17,835)

(3,756,449)

 

Other comprehensive income

 




(429,352)

-

(429,352)

(26,706)

(456,058)

 

 

Total comprehensive income for the period

 

-

-

-

(429,352)

(3,738,614)

(4,167,966)

(44,541)

(4,212,507)

 










 

Contributions by and distributions to owners









 

Share-based payment on share options

-

-

-

-

373,049

373,049

-

373,049

 










 










 

30 June 2017 (unaudited)

27,413,329

87,095,455

(67,673,657)

1,979,080

(28,520,145)

20,294,062

160,460

20,454,522

 










 










 

Notes forming part of the consolidated financial statements

For the 6 months ended 30 June 2017

 

1. Accounting policies

 

General Information

 

Gaming Realms plc ("the Company") and its subsidiaries (together "the Group").

 

The Company is admitted to trading on AIM of the London Stock Exchange. It is incorporated and domiciled in the UK. The address of its registered office is One Valentine Place, London, SE18QH.

 

The results for the six months ended 30 June 2017 and 30 June 2016 are unaudited.

 

Basis of preparation

 

The financial information for the year ended 31 December 2016 does not constitute the full statutory accounts for that year. The Annual Report and Financial Statements for 2016 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statement for 2016 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.

 

This interim report, which has neither been audited nor reviewed by independent auditors, was approved by the board of directors on 12 September 2016. The financial information in this interim report has been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards as adopted for use in the EU (IFRSs). The accounting policies applied by the Group in this financial information are the same as those applied by the Group in its financial statements for the year ended 31 December 2016 and which will form the basis of the 2017 financial statements. There are no new standards, interpretations or amendments which became effective in the period which have had a material effect on the Group's financial information. Management are considering whether IFRS 15 Contracts with customers and IFRS 16 Leases, which are effective for periods beginning after 1 January 2018 and 1 January 2019 respectively, will have a material effect on the Group's future financial statements.

 

The consolidated financial statements are presented in sterling.

 

Adjusted EBITDA

 

EBITDA is a non-GAAP, company specific measure. Adjusted EBITDA excludes adjusting items from EBITDA. Adjusting items are non-recurring material items which are outside the normal scope of the Group's ordinary activities. These items are separately disclosed in order to enhance the reader's understanding of the Group's profitability and cash flow generation. Adjusting items include costs arising from a fundamental restructuring of the Group's operations, acquisition costs, non-trading foreign exchange gains/losses and share-based payment charges. The comparative adjusted EBITDA has been restated to reflect the including of foreign exchange gains/losses as an adjusting item. This has resulted in a decrease in adjusted EBITDA of £78,747 in H1/16 and £273,695 in 2016.

 

2. Segment information

 

The Board is the Group's chief operating decision-maker. Management has determined the operating segments based on the information reviewed by the Board for the purposes of allocating resources and assessing performance. The Group has three reportable segments. The social publishing provides freemium games to the US and Europe. Licensing includes IP brand and content licensing to partners in the US and Europe. The real money gaming products and marketing services operates our brands and provides other digital marketing services to both gaming and non-gaming clients in the UK.

 

Revenue by product:

 


6M 30 Jun 17


6M 30 Jun 16


12M 31 Dec 16


£


£


£

Real money gaming and affiliate marketing

11,441,260


11,153,687


23,313,208

Disposed white label and agency business

-


1,708,921


1,928,451

Social publishing

3,989,943


3,446,827


7,884,101

Licensing

228,639


322,502


786,843

Other

32,580


-


45,515














15,692,422


16,631,937


33,958,118







 

Geographical information

 

The Group considers that its primary geographic regions are the UK, including Channel Islands, USA and the rest of the world. No revenue is derived from real money gaming in the US. Revenues from customers outside the UK (including Channel Islands) and USA are not considered sufficiently significant to warrant separate reporting. All non-current assets are based in the UK.

 


External revenue

by location of customers


External revenue

by location of customers


External revenue

by location of customers


6M 30 Jun 17


6M 30 Jun 16


12M 31 Dec 16


£


£


£







UK, including Channel Islands

11,427,248


12,405,254


23,925,469

USA

2,782,952


3,769,329


6,754,016

Rest of the world

1,482,222


457,354


3,278,633














15,692,422


16,631,937


33,958,118







 

 

3. Finance income and expense

 


6M 30 Jun 17


6M 30 Jun 16


12M 31 Dec 16


£


£


£







Finance income






Interest received

1,513


2,954


3,022

Foreign exchange gain on deferred consideration

169,311

-

-





Total finance income

170,824

2,954

3,022









Finance expense






Bank interest expense paid

40,482


19,943


36,850

Deferred consideration unwinding

85,511


186,998


292,212

Foreign exchange loss on deferred consideration

-


566,103


849,092













Total finance expense

125,993


773,044


1,178,154







 

The deferred consideration in relation to the acquisition from RealNetworks, Inc. was retranslated at the period-end exchange rate which resulted in a gain of £169,311 (6M 30 Jun 2016: loss of £566,103, 12M 31 Dec 2016: loss of £849,092) charge in the current period.

 

 

4. Tax credit


6M 30 Jun 17


6M 30 Jun 16


12M 31 Dec 16


£


£


£

Current tax expense






Adjustment for over provision in prior periods

-


-


(4,451)

Research and development tax credit

175,000


27,861


27,961













Total current tax

175,000


27,861


23,510













Deferred tax expense






Origination and reversal of temporary differences

130,405


118,595


248,941













Total deferred tax

130,405


118,595


248,941













Total tax expense

305,405


146,456


272,451







 

The reasons for the difference between the actual tax charge for the period and the standard rate of corporation tax in the UK applied to profits for the period are as follows:


6M 30 Jun 17


6M 30 Jun 16


12M 31 Dec 16


£


£


£







Loss for the period

(4,061,854)


(5,808,111)


(6,967,794)

Income tax credit

305,405


146,456


272,451













Loss after income taxes

(3,756,449)


(5,661,655)


(6,695,343)



















Loss for the period

(4,061,854)


(5,808,111)


(6,967,794)







Expected tax at effective rate of corporation tax in the UK of 20% (30 Jun 2016: 20% and 31 Dec 2016: 20%)

(812,371)


(1,161,622)


(1,393,559)

Expenses not deductible for tax purposes

63,466


256,580


224,896

Depreciation in excess of capital allowances

16,824


8,898


7,543

Effects of overseas taxation

39,316


(195,089)


(224,795)

Adjustment in respect of loss carried back

-


169,879


-

Unwind of deferred tax recognised on business acquisition

(130,405)


(118,595)


(248,941)

Research and development tax credit

(175,000)


(27,861)


(27,961)

Adjustment for over provision in prior periods

-


-


4,451

Tax losses carried forward

692,765


921,354


1,385,915













Total tax credit

(305,405)


(146,456)


(272,451)







 

 

5. Loss per share

 


6M 30 Jun 17


6M 30 Jun 16


12M 31 Dec 16


£


£


£







Loss after tax

(3,756,449)


(5,661,655)


(6,695,343)














Number


Number


Number







Weighted average number of Ordinary Shares used in calculating basic loss per share

274,133,291


254,857,879



262,432,743













Weighted average number of Ordinary Shares used in calculating dilutive loss per share

274,133,291


254,857,879



262,432,743



















Basic and diluted loss per share (pence)

(1.37)


(2.22)


(2.55)







 

 

6. Intangible assets

 


Goodwill

Customer database

Software

Development costs

Domain names

Intellectual property

Total


£

£

£

£

£

£

£

Cost








At 1 January 2016

18,092,116

4,543,648

1,091,241

2,888,724

363,401

5,354,379

32,333,509

Additions

-

-

-

1,873,868

5,126

-

1,878,994

Disposal

(2,513,764)

(698,447)

-

-

-

-

(3,212,211)

FX movement

495,725

110,102

88,733

-

27,393

528,262

1,250,215

















At 30 June 2016

16,074,077

3,955,303

1,179,974

4,762,592

395,920

5,882,641

32,250,507

















Acquired through business combination

75,413

-

217,216

-

-

-

292,629

Additions

-

-

-

2,090,617

-

-

2,090,617

FX movement

396,374

156,668

141,310

-

38,824

518,789

1,251,965

















At 31 December 2016

16,545,864

4,111,971

1,538,500

6,853,209

434,744

6,401,430

35,885,718

















Additions

-

-

-

1,739,245

-

-

1,739,245

FX movement

(294,346)

(86,966)

(82,115)

(4,696)

(21,637)

(342,354)

(832,114)

















At 30 June 2017

16,251,518

4,025,005

1,456,385

8,587,758

413,107

6,059,076

36,792,849

















 

Amortisation








At 1 January 2016

-

2,055,945

135,717

919,856

45,581

248,609

3,405,708

Amortisation charge

-

584,349

189,187

588,541

64,190

346,555

1,772,822

Disposal

-

(452,365)

-

-

-

-

(452,365)

FX movement

-

(1,811)

(1,459)

-

(451)

(2,673)

(6,394)

















At 30 June 2016

-

2,186,118

323,445

1,508,397

109,320

592,491

4,719,771

















Amortisation charge

-

571,804

251,032

924,322

73,901

386,060

2,207,119

FX movement

-

83,750

68,511

260

20,837

123,633

296,991

















At 31 December 2016

-

2,841,672

642,988

2,432,979

204,058

1,102,184

7,223,881

















Amortisation charge

-

573,926

250,926

1,208,034

63,985

390,462

2,487,333

FX movement

-

(47,731)

(40,842)

(895)

(11,875)

(70,461)

(171,804)

















At 30 June 2017

-

3,367,867

853,072

3,640,118

256,168

1,422,185

9,539,410

























Net book value








At 30 June 2016

16,074,077

1,769,185

856,529

3,254,195

286,600

5,290,150

27,530,736

















At 31 December 2016

16,545,864

1,270,299

895,512

4,420,230

230,686

5,299,246

28,661,837

















At 30 June 2017

16,251,518

657,138

603,313

4,947,640

156,939

4,636,891

27,253,439









 

 

7. Available-for-sale investments

 


30 Jun 17


30 Jun 16


31 Dec 16


£


£


£

Available-for-sale investments







540,000


540,000


540,000







 

 

 

8. Other assets

 


30 Jun 17


30 Jun 16


31 Dec 16


£


£


£

Other assets







164,303


152,000


152,000







 

Other assets represent the rental deposits on operating leases.

 

 

9. Trade and other receivables

 


30 Jun 17


30 Jun 16


31 Dec 16


£


£


£







Trade and other receivables

1,794,268


3,841,642


2,736,038

Allowance for doubtful debts

(1,477)


(8,938)


(1,477)














1,792,791


3,832,704


2,734,561



















Prepayments and accrued income

1,583,764


1,344,279


613,034














3,376,555


5,176,983


3,347,595







 

All amounts shown fall due for payment within one year

 

 

10. Cash and cash equivalents

 


30 Jun 17


30 Jun 16


31 Dec 16


£


£


£







Cash and cash equivalents

1,084,671


2,979,790


2,597,465

Restricted cash

18,702


19,568


18,802














1,103,373


2,999,358


2,616,267







 

Restricted cash of £18,702 (30 Jun 2016: £19,568 and 31 Dec 2016: £18,802) relates to funds held in Swiss subsidiaries which are currently undergoing liquidation. The funds are restricted and are not included in the consolidated statement of cash flows.

 

Included within cash and cash equivalents is the Group's overdraft facility. The total facility is £1.500,000 and at 30 June 2017 was drawn down by £993,968 (30 Jun and 31 Dec 2016: nil).

 

 

11. Trade and other payables

 


30 Jun 17


30 Jun 16


31 Dec 16


£


£


£







Trade and other payables

2,932,740


3,388,604


2,012,196

Accruals

5,105,067


4,317,263


4,681,212

Player liabilities

395,686


413,204


365,373














8,433,493


8,119,071


7,058,781








The carrying value of trade and other payables classified as financial liabilities measured at amortised cost approximates fair value.

 

 

12. Share capital

 

Ordinary Shares



30 Jun 17


30 Jun 16


31 Dec 16



£


£


£








274,133,292 (30 Jun 16: 261,633,292 and 31 Dec 16: 274,133,292) Ordinary Shares of 10 pence each


27,413,329


26,163,329


27,413,329








 

Movements in share capital

 

 

Number


£





At 1 January 2016

249,208,292


24,920,829





Ordinary shares issued for cash consideration

7,625,000


762,500

Ordinary shares issued for settling the Blueburra Holdings Limited contingent consideration

4,800,000


480,000









At 30 June 2016

261,633,292


26,163,329









Ordinary shares issued for cash consideration

12,500,000


1,250,000









At 31 December 2016 and 30 June 2017

274,133,292


27,413,329





 

 

13. Events after reporting date

 

On 17 July 2017, the Company amended the Asset Purchase Agreement with Real Networks Inc, which provided for a final payment to Real Networks of $4m by the 10 August 2017. The final payment to Real Networks was amended, and it was agreed that the final payment of $4.5m will be made by the 15 December 2017.

 

On 8 August 2017, the Company raised £1,132,500 by issuing 10,295,455 shares at £0.11 per share.


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