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Valiant Investments Plc (VALP)

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Monday 20 August, 2018

Valiant Investments Plc

Interim Results for the 6 Months ended 31 May 2018

VALIANT INVESTMENTS PLC
(“Valiant”, the “Group”, or the “Company”)

INTERIM RESULTS FOR THE 6 MONTHS ENDED 31 MAY 2018

The first half of the 2018 financial year has seen continued progress for Valiant Investments, led by the performance of the Group’s 84.7% owned subsidiary, Flamethrower plc (“Flamethrower”).

FLAMETHROWER PLC

I am pleased to advise that since I last reported to shareholders at the end of April 2018, that Flamethrower has continued the expansion of its digital asset portfolio. The performance of each division is as follows:

WEBSITES

In June 2018 we announced the acquisition of the website www.xpgamesaves.com for a cash consideration of US$11,501.

xpGameSaves.com is a website that provides news and opinion on the gaming industry to users, as well as having an active forum. The website was established in 2009 and has grown to have over 1 million registered users.

At the time of acquiring the website it had a Global Ranking from web analytics company, Alexa.com, of 99,071 and a ranking in the United States of 49,129. Since the acquisition, xpGameSaves.com now has a Global Ranking at the time of writing of 96,619 and a ranking in the United States of 53,914. Such rankings are calculated using a combination of average daily visitors and page views on the website over the past three months.

The website is monetised through publishing adverts, which are served by Flamethrower’s partner, Venatus Media Ltd. The financial performance of xpGameSaves.com since its acquisition currently suggests that it has been bought on a multiple of around two times annual net earnings.

xpGameSaves.com is the second significant website acquired by Flamethrower in the current financial year, and follows the acquisition of National-Preservation.com in March 2018, which was acquired for a cash consideration of $17,500.

We continue to be pleased with the performance of National-Preservation both in terms of user numbers and revenue. Our data analytics informs that National-Preservation has consistently had around 21,000 unique users each month since we acquired the website, whilst the financial performance continues to be in line with our expectations, which is a modest improvement compared to when the website was acquired.

Meanwhile, MinecraftCommand.Science continues to perform well both in terms of user numbers and revenue. During the first six months of the financial year, the website averaged in the region of 210,000 unique users each month, and over 1,000,000 page views per month. Having acquired the website for $25,000 in May 2017, I am pleased to advise that the website has repaid this acquisition cost and continues to generate consistent revenue each month.

Finally, FootballTipsFC.com has also performed well in the period in terms of subscribers and revenue. We have recently undertaken some cosmetic work to the site, which has included updating the homepage imagery, and we will look to continue to enhance the site going forward.

APPS

I am pleased to advise that Flamethrower has now achieved the unique milestone of achieving over 1,000,000 downloads on the Apple App Store since opening its developer account in mid-2016.

During the first half of the financial year we have updated a number of our Mac Apps from 32-bit binary to 64-bit binary, so as to ensure they perform optimally on the modern Macs with their 64-bit processors.

We intend to continue to update Flamethrower’s app portfolio, although, as outlined in the final results statement in April, the intention remains to focus more on website ownership over apps going forward. We have, however, concluded a joint-venture on social casino apps through Flamethrower’s wholly-owned subsidiary, Slot Right In Ltd, which is discussed herein, following the review of Flamethrower’s digital asset portfolio operations.

DOMAIN NAMES

There have been no additions or disposals of domain name since the last update to shareholders at the time of the final results in April. Flamethrower continues to hold ComputerPlace.com, WhatClub.com, HottestThing.com, ScrapHeaps.com, MediaFeeds.com, LockStore.com, Gungy.com, GamingBooth.com, LQEX.com, and UFBS.com.

INVESTMENTS

There have been no additions to Flamethrower’s investment portfolio since the final results statement in April, but there has been one disposal, being the 1,125 shares held in Caledonia Mining, which were sold at 615p, representing a gain of 19.41% on the purchase price of 515p. Currently, therefore, Flamethrower holds the following investments:

Company Shares Held Average Price Paid (pence)
Cerillion 1,400 151
H&T Group 1,200 333.6
United Carpets Group 59,000 8.5
Zytronic 375 510

SLOT RIGHT IN LTD

Slot Right In Ltd was formed in November 2016 as a wholly-owned subsidiary of Flamethrower plc, for the purpose of serving as the social casino app and gaming division of the group. Whilst a handful of initial apps were launched, this division never took off in the manner originally anticipated at formation, and was put on the backburner.

Therefore I am pleased to advise that Slot Right In has recently entered into a joint venture with BlueWater Publishing (“BlueWater”), an independent American-based app developer, to construct a portfolio of high-end social casino apps for iOS and Android devices.

Under the terms of the joint venture, Slot Right In will provide BlueWater with capital of at least $20,000 to commence the construction of the portfolio of social casino apps in 2018, and at least $60,000 to further expand the portfolio in 2019. Slot Right In will fund the monthly advertising of the portfolio, for which it will be reimbursed from the total revenue generated, with the net profit being split on an equal basis each month. Revenue is generated through in-app purchases and the publishing of ads.

The initial app for iOS and Android devices is currently in development, and we look forward to its launch in due course. It is too early to forecast the potential revenue and profit that this joint-venture could generate, but we are optimistic as to its potential.

We have enjoyed an ad hoc relationship BlueWater for over 18 months, having acquired apps for Flamethrower from them in the past and engaged them for app development work. We are pleased, therefore, to have concluded a joint venture agreement with them to construct a portfolio of high-end social casino apps, and look forward to a successful relationship.

VALIANT – SHAREHOLDING IN TETRA BIO-PHARMA INC.

Valiant continues to hold 60,000 shares in Tetra Bio-Pharma Inc., a Canadian cannabinoid-based drug discovery and development company. At the time of writing, shares in Tetra Bio-Pharma are trading at CAD$0.90, valuing the position at CAD$54,000.

ALL STAR MINERALS PLC

The £20,000 Convertible Loan Note provided to All Star Minerals plc (“All Star”) continues to be outstanding, and Valiant is currently awaiting the issuance of the 4,000,000 shares in All Star in respect of the interest earned on the loan note in the period to May 2018.

Valiant continues to hold 10,260,712 shares in All Star, which, at the time of writing, are trading at 0.085p.

All Star is an investment vehicle listed on the NEX Growth Market, that is seeking a transaction, and which holds 5,519,545 shares in NQ Minerals plc, shares in which are also listed on the NEX Growth Market. At the time of writing, shares in NQ Minerals plc are trading at 14p, which values All Star’s shareholding at just shy of £775,000.

In its most recent update, being its final results announced on 31 May 2018, All Star confirmed that it continues to work toward concluding a suitable transaction to move the business forward.

FINANCIALS

The financial results for the six months to 31 May 2018 show turnover of £50,182 (2017: £23,024), which reflects the revenue generated by Valiant’s 84.7% owned subsidiary, Flamethrower plc. The loss after taxation was £87,591 (2017: £133,058), and the basic loss per share was 0.01p (2017: 0.01p).

OUTLOOK

I am pleased with the growth and performance of Valiant’s 84.7% owned subsidiary, Flamethrower plc, since the business commenced operations just over two years ago. The strategy continues to be to grow the portfolio of digital assets as opportunities present themselves, to grow the investment portfolio, and to focus our efforts on making a success of the joint venture through Slot Right In Ltd for the construction of a portfolio of high-end social casino apps for iOS and Android devices.

I look forward to updating shareholders on developments at Valiant in the weeks ahead, and building on the solid foundations that have been laid for the Group since the formation of Flamethrower.

Conrad Windham

CEO, Valiant Investments plc

20 August 2018

VALIANT INVESTMENTS PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
SIX MONTHS ENDED 31 MAY 2018

Unaudited
6 month period ended 31 May 2018
GBP
Audited
year ended
30 November 2017
GBP
Unaudited
6 month period ended 31 May 2017
GBP
Revenue 50,182 57,832 23,024
Cost of sales (33,856) (47,326) (16,817)
GROSS PROFIT 16,326 10,506 6,207
Administrative expenses (106,067) (254,942) (142,283)
Other non-operating income 2,150 28,675 3,018
LOSS BEFORE TAX (87,591) (215,761) (133,058)
Income tax expense - - -
LOSS FOR THE PERIOD/YEAR (87,591) (215,761) (133,058)
Attributable to:
Equity holder of the parent (87,156) (212,038) (132,332)
Non-controlling interest (435) (3,723) (726)
LOSS PER SHARE
Basic & diluted (pence per share) (0.01) (0.02) (0.01)

VALIANT INVESTMENTS PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2018

Unaudited
at 31 May 2018

GBP
Audited
At 30 November 2017
GBP
Unaudited
 At 31 May 2017

GBP
NON CURRENT ASSETS
Intangible assets 131,030 141,154 119,894
Property, plant and equipment 4,301 4,719 1,692
Investments 80,905 60,519 34,862
216,236 206,392 156,448
CURRENT ASSETS
Trade and other receivables 5,409 27,508 11,535
Cash and cash equivalents 4,549 3,606 34,339
9,958 31,114 45,874
TOTAL ASSETS 226,194 237,506 202,322
EQUITY PLUS NON-CONTROLLING INTEREST
ISSUED SHARE CAPITAL AND RESERVES
Share capital 1,208,059 1,158,159 1,041,559
Share premium 1,067,510 1,042,510 1,042,510
Retained profits (2,088,709) (2,001,553) (1,921,847)
SUBSCRIBED CAPITAL 186,860 199,116 162,222
Non-controlling interest (2,108) (1,673) 1,324
TOTAL EQUITY 184,752 197,443 163,546
CURRENT LIABILITIES
Trade and other payables 41,442 40,063 38,776
TOTAL EQUITY AND LIABILITIES 226,194 237,506 202,322


 

Notes:

1. The financial information contained in the interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.

2. Basic loss per share has been calculated using the weighted average number of shares of 1,174,222,600 (30.11.17: 1,035,649,762 ; 31.5.17: 924,575,059). Given the loss per share, there are no dilutive instruments in issue.
 

The Directors of Valiant accept responsibility for the contents of this announcement.


-ENDS-

ENQUIRIES:

Company
Valiant Investments plc
Conrad Windham
Telephone: 01366 500722

Corporate Adviser
Peterhouse Capital Limited
Guy Miller and Mark Anwyl
Telephone: 020 7220 9796


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