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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Gaming Realms Plc | AQSE:GMR.GB | Aquis Stock Exchange | Ordinary Share | GB00BBHXD542 | Ordinary Shares 10p |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -0.40 | -1.19% | 33.10 | 32.00 | 35.00 | 33.50 | 33.10 | 33.50 | 25,000 | 08:08:40 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMGMR
RNS Number : 6230J
Gaming Realms PLC
13 September 2016
Gaming Realms plc
(the "Company" or the "Group")
Interim results for the six months ended 30 June 2016
Growth Strategy Generates 109% Year on Year Revenue Growth
Gaming Realms plc, which creates, publishes and licenses next generation mobile games, today announces its interim results for the six months ended 30 June 2016.
Financial highlights:
Hot Features
Premium
H1 2016 H1 2015 Movement
GBP'000s GBP'000s %
Revenue 16,632 7,954 109
Adjusted EBITDA (2,999) (2,428) (24)
EPS from continuing operations
(pence) (2.22) (1.80) (23)
H1 2016 H1 2015 Movement
Depositing players numbers numbers %
Average monthly* 55,387 15,493 257
New * 143,282 38,869 269
* excluding disposals (see note 3)
-- Significant revenue growth of 109% to GBP16.6m (H1/15: GBP8.0m) driven by continued success from the Group's proprietary mobile platform ("Grizzly") and the acquisition of the social gaming assets from Real Networks, which contributed GBP3.8m of social gaming and licensing revenues in H1/16 (H1/15: GBPnil)
-- Real money gambling revenue on the Grizzly platform up 143% to GBP10.2m (H1/15: GBP4.2m)
-- EBITDA loss of GBP3.0m (H1/15: GBP2.4m) which includes an H1/16 front loaded growth investment in marketing of GBP9.5m related to the Group's ongoing investment in slingo.com and launch of Britain's Got Talent games, as well as the continued scaling in our other real money gaming sites and mobile apps. This investment in marketing has been the key driver in the growth of our revenues and depositing players, and compares to GBP5.1m of marketing expenditures in H1/15
-- The Board believes that the Group is trading in line with market expectations, which implies that the Group will be EBITDA positive for 2016
Operational highlights:
-- Mobile usage predominates on Grizzly platform, with 84% of depositing players using mobile up from 80% in H1/15
-- Player take-up increased 269% with 143,282 new depositing players during the period (H1/15: 38,869) excluding disposals in current and prior periods
-- Disposal of non-core assets including third party platform bingo sites and marketing agency to focus on core strategy
-- Licensing contracts with Zynga and Scientific Games into significant adjacent markets -- Launch of Britain's Got Talent games site in the UK
-- Continued investment in product development, in line with the Group's strategy of highly focused investment in our games, platform and player acquisition
Post-period end:
The Group has signed and launched a number of key deals which will further help growth for H2 2016:
-- Launch of thexfactorgames.com and creation of a new game based on the television show
-- A B2B deal with Bauer Media for the co-promotion of SpinGenie.com across Bauer's radio, digital and magazine titles, including Heat and Closer magazines, and on Heat, Kiss, Magic and Absolute radio stations
-- The Group has launched its Remote Game Server which allows the licensing of its games to selected partners, which will have a direct positive impact on the EBITDA contribution in 2017 and beyond
Patrick Southon, Chief Executive, said:
"The Group has delivered an excellent first half as a result of focusing on our proprietary technology and games publishing and licensing.
"We have seen strong growth on our proprietary Grizzly platform, which has been achieved through the development of unique content, investment in player acquisition and improved use of CRM on mobile. We continue to see lower player costs per acquisition than the industry average. Our revenue per active real money player in H1/16 has increased by 56% to GBP110 v H1/15. At the same time, we have streamlined the business through the disposal of our third party platform bingo sites and marketing agency.
"The integration of the Social Games teams in Seattle and Vancouver Island has been successful and the Group is now producing content through a combined road map for both real money and free to play apps. In addition, we continue to sign strategic partnerships and licensing deals for our content, IP and platform with blue chip partners, which underlines the long term growth prospects of the Group."
Outlook
The Group will continue to implement its business strategy, which has proven to be very successful in H1 2016. At the same time, the disposal of the third-party platform bingo sites and the re-organisation of our non-core digital marketing activities have helped to increase the focus on the highest growth areas of the business.
The Board believes that the Group is trading in line with market expectations, which implies that the Group will be EBITDA positive for 2016.
- 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, Adrian Trimmings, George Sellar 020 7418 8900 Yellow Jersey PR Charles Goodwin, Aidan Stanley 07747 788221
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 great progress during the first half of the year during which it delivered revenues of GBP16.6m (H1/15: GBP8.0m), up 109% over the comparable period and 25% higher than the second half of 2015. At the same time the Group has continued to invest heavily in its marketing strategy. Total marketing spend for the first half was GBP9.5m (H1/15: GBP5.1m) which, combined with increased operating costs, resulted in a loss before taxation of GBP5.8m (H1/15: GBP3.5 million loss), in line with the Group's operational growth plan.
Operating costs, which correlated with revenue growth, increased in the period as a result of the continued success of the Group's proprietary platform, leading to higher third party royalties, transaction fees and UK point of consumption tax ("POC"). In line with the Group's plan, management has focused on growing real money gambling on the proprietary platform, which accounted for 61% of Group revenue in the period (H1/15: 53%).
143,282 new depositing players were acquired in the period (H1/15: 38,869) excluding disposed third party legacy site players from both periods, with a continued growth in our proprietary platform which accounted for 75,644 of the players (H1/15: 38,869). The number of daily active depositing players grew 101% to 6,116 (H1/15: 3,042) excluding disposed third party legacy site players.
Casino & Proprietary Platform
Our proprietary platform continues to be the focus of the Group's strategy with significant revenue growth of 143% to GBP10.2m (H1/15: GBP4.2m). The Group continues to invest heavily in platform and game development and player acquisition and engagement.
The increase in revenue is a direct result of the platform's scalability with the slingo.com and bgtgames.com (launched in Q4/15 and March 2016 respectively), together contributing 39% of the platform's revenue in the period. These sites have also contributed to the low CPA of GBP88 for the period.
Since the acquisition of the gaming assets from Real Networks, we have been distributing and developing Slingo games across all sites which have contributed to 21% of the overall real money gross gaming revenue.
Mobile content and delivery continues to drive game play on mobile devices with 84% of funded players using mobile devices (H1/15: 80%).
Social & Licensing
During the period the Group entered into two new licensing deals for our leading games format, Slingo.
The first deal is with social games developer Zynga to bring a new Slingo branded slot game to the social casino market. The deal includes a minimum guaranteed royalty stream to the Group with recoupable upfront royalty payments on net revenue over a three-year term.
The second licensing deal is with Scientific Games Corporation. The five-year agreement will provide Scientific Games with exclusive rights to produce and distribute Slingo branded land-based slot machines to casinos and related properties worldwide. Under the terms of the licence, Scientific Games will develop new land-based slot games for traditional gaming machines, video lottery terminals, and on-property handheld devices. The agreement includes a minimum guaranteed royalty stream to the Group payable in the first two years. The agreement also includes an extension of Scientific Games' licence to produce Slingo branded physical scratch lottery tickets in certain lottery markets.
The Group experienced month on month revenue growth in its free to play mobile games publishing segment, led by Slingo Adventure and Slingo Shuffle. Growth for H1 2016 in social and licensing was 52% compared to H2 2015, reaching over US$1m for the month of June.
Following the success of its initial Slingo mobile apps, two new Slingo apps were developed during the period for H2 launch, including one leveraging the Group's Remote Game Server with a view to bringing successful RMG content into the social app environment on the Group's social publishing platform.
The Group also continued to invest in the Hidden Objects category following the success of Hidden Artifacts and, since the period has ended, entered into an agreement to acquire a majority stake in Hullabu Inc., its studio partner, with which the Group intends to further develop capacity and game content in this highly popular genre.
Consolidated statement of profit or loss and other comprehensive income
for the 6 months ended 30 June 2016
Note 6 months 6 months 12 months
ended ended ended
30 Jun 30 Jun 31 Dec
16 15 15
GBP GBP GBP
Unaudited Unaudited Audited
Revenue 2 16,631,937 7,953,513 21,208,446
Marketing expenses (9,524,423) (5,051,713) (11,510,755)
Operating expenses (4,292,551) (2,398,560) (5,725,255)
Administrative expenses (5,813,727) (2,931,065) (8,079,852)
Adjusted EBITDA (2,998,764) (2,427,825) (4,107,416)
Acquisition costs - - (318,853)
Profit on disposal of
digital marketing agency
and third-party platform
driven website properties 3 269,226 - -
Share-based payments (491,172) (232,064) (673,730)
EBITDA (3,220,710) (2,659,889) (5,099,999)
Amortisation of intangible
assets 7 (1,772,822) (778,766) (2,230,940)
Depreciation of property,
plant and equipment (44,489) (16,957) (59,861)
Movement in deferred
and contingent consideration 4 (753,101) (72,583) (372,170)
Finance expense (19,943) (8,861) (21,409)
Finance income 2,954 6,495 7,579
Loss before tax on continuing
operations (5,808,111) (3,530,561) (7,776,800)
Tax credit 5 146,456 21,430 335,775
Loss for the financial
period attributable
to owners of the parent (5,661,655) (3,509,131) (7,441,025)
Other comprehensive
income
Exchange gains arising
on translation of foreign
operations 1,076,941 - 605,546
-------------- -------------- --------------
Total other comprehensive
income 1,076,941 - 605,546
Total comprehensive
income (4,584,714) (3,509,131) (6,835,479)
-------------- -------------- --------------
Earnings per share
Loss per share
Basic and diluted (pence) 6 (2.22) (1.80) (3.45)
Consolidated statement of financial position
as at 30 June 2016
Note 30 Jun 30 Jun 31 Dec
16 15 15
GBP GBP GBP
Assets Unaudited Unaudited Audited
Non-current assets
Property, plant and
equipment 208,144 147,030 189,652
Goodwill 7 16,074,077 13,543,905 18,092,116
Intangible assets 7 11,456,659 2,642,715 10,835,685
Available-for-sale
investment 8 540,000 - -
Other assets 9 152,000 158,500 152,000
28,430,880 16,492,150 29,269,453
Current assets
Trade and other receivables 10 5,176,983 2,994,331 4,018,084
Cash and cash equivalents 11 2,999,358 1,286,977 2,536,388
8,176,341 4,281,308 6,554,472
Total assets 36,607,221 20,773,458 35,823,925
Current liabilities
Trade and other payables 12 8,119,071 3,265,293 4,327,965
Loans and borrowings - 200,996 -
Contingent and deferred
consideration 14 2,992,028 2,500,000 4,990,966
11,111,099 5,966,289 9,318,931
Non-current liabilities
Deferred tax liability 5 1,240,228 17,858 1,232,597
Contingent and deferred
consideration 14 2,826,572 2,460,231 2,474,533
4,066,800 2,478,089 3,707,130
Total liabilities 15,177,899 8,444,378 13,026,061
Net assets 21,429,322 12,329,080 22,797,864
Equity
Share capital 15 26,163,329 19,517,049 24,920,829
Share premium reserve 13 85,890,455 78,119,547 85,127,955
Merger reserve (67,673,657) (69,334,935) (68,393,657)
Foreign exchange
reserve 1,682,487 - 605,546
Retained earnings (24,633,292) (15,972,581) (19,462,809)
Total equity 21,429,322 12,329,080 22,797,864
Consolidated statement of cash flows
for the 6 months ended 30 June 2016
Note 6 months 6 months 12 months
ended ended ended
30 Jun 30 Jun 31 Dec
16 15 15
GBP GBP GBP
Unaudited Unaudited Audited
Cash flows from operating
activities
Loss for the period (5,661,655) (3,509,131) (7,441,025)
Adjustments for:
Depreciation of property,
plant and equipment 44,489 16,957 59,861
Amortisation of intangible
fixed assets 7 1,772,822 778,766 2,230,940
Finance income (2,954) (6,495) (7,579)
Finance expense 19,943 8,861 21,409
Movement in deferred and
contingent consideration 4 753,101 72,583 372,170
Contingent consideration
on prior period acquisitions - - 105,000
Net foreign exchange loss (69,290) - -
Unwind of deferred tax
recognised on business
acquisitions 5 (118,595) (21,430) (122,692)
Loss on disposal of property,
plant and equipment - 27,684 42,372
Profit/(loss) on disposal
of intangibles assets 7 - (393,957) 106,043
Profit on disposal of
digital marketing agency
and third-party platform
driven website properties 3 (269,226) - -
Share-based payment expense 491,172 232,064 673,730
Increase in trade and
other receivables (1,173,661) (523,531) (1,177,150)
Increase in trade and
other payables 3,899,165 515,157 1,458,801
Increase in other assets - - 6,500
Net cash from operating
activities (314,689) (2,802,472) (3,671,620)
Investing activities
Acquisition of subsidiary,
net of cash acquired - - (6,652,050)
Proceeds from disposal
of intangibles 4,763 253,941 -
Proceeds from disposal
of discontinued operation,
net of cash disposed 3 1,200,000 - -
Purchases of property,
plant and equipment (61,545) (48,507) (68,055)
Purchase of intangible
assets 7 (1,878,994) (314,005) (1,805,913)
Interest received 2,954 6,495 7,579
Net cash from investing
activities (732,822) (102,076) (8,518,439)
Financing activities
Proceeds of Ordinary Share
issue 13 1,525,000 - 12,500,000
Issuance cost of shares - - (501,534)
Proceeds from other loans - 198,492 -
Payment of contingent
consideration - - (1,250,000)
Repayment of other loans - (12,000) (14,504)
Interest paid (19,943) (8,861) (21,409)
Net cash from financing
activities 1,505,057 177,631 10,712,553
Net decrease in cash and
cash equivalents 457,546 (2,726,917) (1,477,506)
Cash and cash equivalents
at beginning of period 2,516,820 3,994,326 3,994,326
Exchange gain on cash
and cash equivalent
5,424 - -
Cash and cash equivalents
at end of period 10 2,979,790 1,267,409 2,516,820
Consolidated statement of changes in equity
for the 6 months ended 30 June 2016
Share Share Merger Foreign Retained Total
capital premium reserve exchange earnings equity
reserve
GBP GBP GBP GBP GBP GBP
1 January 2015 19,517,049 78,119,547 (69,334,935) - (12,695,514) 15,606,147
Loss for the
period - - - - (3,509,131) (3,509,131)
Share-based
payment on share
options - - - - 232,064 232,064
30 June 2015
(unaudited) 19,517,049 78,119,547 (69,334,935) - (15,972,581) 12,329,080
Loss for the
period - - - - (3,931,894) (3,931,894)
Other
comprehensive
income - - - 605,546 - 605,546
Total
comprehensive
income for the
period - - - 605,546 (3,931,894) (3,326,348)
Contributions
by and
distributions
to owners
Shares issued
as part of the
consideration
in a business
combination 413,722 - 941,278 - - 1,355,000
Shares issued
as part of
capital
raising 4,990,058 7,509,942 - - - 12,500,000
Cost of issue
of ordinary
share capital - (501,534) - - - (501,534)
Share-based
payment on share
options - - - - 441,666 441,666
31 December
2015 24,920,829 85,127,955 (68,393,657) 605,546 (19,462,809) 22,797,864
Loss for the
period - - - - (5,661,655) (5,661,655)
Other
comprehensive
income - - - 1,076,941 - 1,076,941
------------------- ----------- ----------- ------------- ------------ -------------- --------------
Total
comprehensive
income for the
year - - - 1,076,941 (5,661,655) (4,584,714)
------------------- ----------- ----------- ------------- ------------ -------------- --------------
Contributions
by and
distributions
to owners
Shares issued
as part of the
capital raising 762,500 762,500 - - - 1,525,000
Shares issued
as part of the
consideration
in a business
combination 480,000 - 720,000 - - 1,200,000
Share-based
payment on share
options - - - - 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
Notes forming part of the consolidated financial statements
For the 6 months ended 30 June 2015
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 2016 and 30 June 2015 are unaudited.
Basis of preparation
The financial information for the year ended 31 December 2015 does not constitute the full statutory accounts for that year. The Annual Report and Financial Statements for 2015 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statement for 2015 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 period ended 31 December 2015 and which will form the basis of the 2016 financial statements. A number of new and amended standards have become effective for periods beginning on 1 January 2016, however none of these are expected to materially affect the Group.
The consolidated financial statements are presented in sterling.
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 two reportable segments. The social gaming product provide freemium gaming services to the US and Europe. The real money gambling 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 6M 30 12M 31
Jun 2016 Jun 2015 Dec 2015
GBP GBP GBP
Social gaming and licensing 3,769,329 53,066 2,537,158
Real money gambling 10,171,925 4,180,831 10,801,303
Marketing services 2,690,683 3,719,616 7,839,299
Other - - 30,686
16,631,937 7,953,513 21,208,446
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 External External
revenue revenue revenue
by location by location by location
of customers of customers of customers
6M 30 6M 30 12M 31
Jun 16 Jun 15 Dec 15
GBP GBP GBP
UK, including Channel
Islands 12,405,254 7,582,711 17,656,043
USA 3,769,329 40,606 1,752,753
Rest of the world 457,354 330,196 1,799,650
16,631,937 7,953,513 21,208,446
3. Profit on disposal
Disposal of third-party platform driven website properties
On 4 March 2016, the Group disposed of its third-party platform driven website properties, for a total consideration
of GBP2.4m. Black Spark Media Limited paid the Group an upfront cash payment of GBP1.2m with the remaining GBP1.2m payable by Silverspin Media Limited, was settled by way of waiving the final earn out payment to the previous shareholders of Blueburra Holding Limited. An additional GBP500,000 is payable under a transitional services agreement over a 5-month period.
2016
Consideration received GBP
Cash consideration 1,200,000
Contingent consideration waived with
respect to the Blueburra Holdings Limited
acquisition 1,200,000
------------
2,400,000
------------
Net assets disposed:
Intangible 246,081
Goodwill 2,266,241
Trade and other receivables 14,763
Trade and other payables (108,060)
------------
2,419,025
------------
Loss on disposal of third-party platform
driven website properties (19,025)
Disposal of digital marketing agency
On 6 June 2016, the Group entered into a strategic partnership with digital marketing company Ayima Limited. Under the terms of the partnership, the Group has agreed to contribute assets comprising its external digital marketing agency to Ayima Limited. As consideration for the disposal of the Assets, the Group were issued shares to 10% of the enlarged issued share capital of Ayima Limited. The 10% shares have been valued at approximately GBP540,000, based on a desktop valuation performed by an external advisor.
2016
Consideration received GBP
Available-for-sale investment
in Ayima Limited 540,000
540,000
----------
Net assets disposed:
Property, plant and equipment 4,225
Goodwill 247,524
----------
251,749
----------
Profit on disposal of
the digital marketing
agency 288,251
4. Movement in deferred and contingent consideration
6M 30 6M 30 12M 31
Jun 2016 Jun 2015 Dec 2015
Deferred and contingent
consideration unwinding 186,998 72,583 233,053
Foreign exchange movement
on deferred consideration 566,103 - 273,134
Fair-value adjustment
of contingent consideration - - (134,017)
753,101 72,583 372,170
5. Tax expense
6M 30 6M 30 12M 31
Jun 2016 Jun 2015 Dec 2015
GBP GBP GBP
Current tax expense
Current tax credit on
losses for the period 27,861 - 213,083
Total current tax 27,861 - 213,083
Deferred tax expense
Origination and reversal
of temporary differences 118,595 21,430 122,692
Total deferred tax 118,595 21,430 122,692
Total tax credit 146,456 21,430 335,775
6M 30 6M 30 12M 31
Jun 2016 Jun 2015 Dec 2015
GBP GBP GBP
Loss for the period (5,808,111) (3,530,561) (7,776,800)
Income tax credit 146,456 21,430 335,775
Loss after income taxes (5,661,655) (3,509,131) (7,441,025)
Loss for the period (5,808,111) (3,530,561) (7,776,800)
Expected tax at effective
rate of corporation tax
in the UK of 20% (31 Dec
15: 20.25% and 30 Jun
15: 20.30%) (1,161,622) (716,704) (1,574,802)
Expenses not deductible
for tax purposes 256,580 60,817 273,077
Depreciation in excess
of capital allowances 8,898 3,443 18,501
Effects of overseas taxation (195,089) 99,280 316,501
Adjustment in respect 169,879 - -
of loss carried back
Unwind of deferred tax
recognised on business
acquisition (118,595) (21,430) (122,692)
Research and development
tax credit (27,861) - (213,083)
Tax losses carried forward 921,354 553,164 966,723
Total tax credit (146,456) 21,430 (335,775)
There are unused tax losses carried forward as at the balance sheet date of GBP31,759,715 (30 Jun 15: GBP24,420,026, 31 Dec 15: GBP27,278,988) equating to an unrecognised deferred tax asset of GBP6,351,943 (30 Jun 15: GBP4,884,005, 31 Dec 15: GBP5,455,798). No deferred tax asset has been recognised in respect of these losses, as the recoverability of any asset is dependent upon sufficient profits being achieved in future years to utilise this asset. The timings of such profits are uncertain.
The deferred tax balance relates primarily to amounts recognised as part of the business combination. The credit in the period relates to the unwind of the provision recognised on acquisition.
6. Loss per share
6M 30 6M 30 12M 31
Jun 2016 Jun 2015 Dec 2015
GBP GBP GBP
Loss after tax (5,661,655) (3,509,131) (7,441,025)
Number Number Number
Weighted average number
of Ordinary Shares used
in calculating basic loss
per share 254,857,879 195,170,489 215,672,706
Weighted average number
of Ordinary Shares used
in calculating dilutive
loss per share 254,857,879 195,170,489 215,672,706
Basic and diluted loss
per share (pence) (2.22) (1.80) (3.45)
7. Intangible assets
Goodwill Customer Software Development Domain Intellectual Total
database costs names property
GBP GBP GBP GBP GBP GBP GBP
Cost
At 1 January
2015 13,543,905 3,189,553 361,684 1,082,811 26,514 - 18,204,467
Additions - - - 314,005 - - 314,005
Disposal(#) - - (361,684) - - - (361,684)
At 30 June
2015 13,543,905 3,189,553 - 1,396,816 26,514 - 18,156,788
Acquired
through
business
combination 4,300,671 1,289,563 1,039,236 - 320,832 5,076,493 12,026,795
Additions - - - 1,491,908 - - 1,491,908
FX movement 247,540 64,532 52,005 - 16,055 277,886 658,018
At 31 December
2015 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
Amortisation
At 1 January
2015 - 857,986 222,834 365,795 428 - 1,447,043
Amortisation
charge - 537,981 32,807 206,364 1,614 - 778,766
Disposal(#) - - (255,641) - - - (255,641)
At 30 June
2015 - 1,395,967 - 572,159 2,042 - 1,970,168
Amortisation
charge - 664,689 139,514 347,697 44,711 255,563 1,452,174
FX movement - (4,711) (3,797) - (1,172) (6,954) (16,634)
At 31 December
2015 - 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
Net book
value
At 31 December
2015 18,092,116 2,487,703 955,524 1,968,868 317,820 5,105,770 28,927,801
At 30 June
2015 13,543,905 1,793,586 992,246 824,657 24,472 - 16,186,620
At 30 June
2016 16,074,077 1,769,185 856,529 3,254,195 286,600 5,290,150 27,530,736
*On 4 March 2016, the Group disposed of the third-party platform driven website properties, for a total consideration
of GBP2.4m to Silverspin Media Limited and Black Spark Media Limited. On 6 June 2016, the Group entered into a strategic partnership with digital marketing company Ayima Limited to contribute assets comprising its external digital marketing agency to Ayima Limited (note 3).
(#) On 9 April 2015, Bingo Realms Limited entered into an Asset Sale and Purchase Agreement with European Domain Management Ltd, to sell all associated assets in its Bingo Godz and CastleJackpot brands which were operated by Intellectual Property & Software Limited. The total consideration for the sales was GBP500,000 in cash, with GBP200,000 payable on completion and the remainder payable over the next 17 months.
8. Available-for-sale investments
2016
GBP
At 1 January 2016 -
Additions 540,000
At 30 June 2016 540,000
The Group's strategic investments is a 10% interest in Ayima Limited. This company is not accounted for on an equity basis as the Group does not have the power to participate in the company's operating and financial policies, evidenced by the lack of any direct or indirect involvement at board level and a contractual arrangement which enables the board to take all operational and strategic decisions without consultation with shareholders owning less than 30% of the share capital of Ayima Limited (note 3).
9. Other assets
30 Jun 30 Jun 31 Dec
2016 2015 2015
GBP GBP GBP
Other assets
152,000 158,500 152,000
Other assets represent the rental deposits on operating leases.
10. Trade and other receivables
30 Jun 30 Jun 31 Dec
2016 2015 2015
GBP GBP GBP
Trade and other receivables 3,841,642 1,678,240 2,473,844
Allowance for doubtful
debts (8,938) (9,548) (8,938)
3,832,704 1,668,692 2,464,906
Prepayments and accrued
income 1,344,279 1,325,639 1,553,178
5,176,983 2,994,331 4,018,084
All amounts shown fall due for payment within one year
11. Cash and cash equivalents
30 Jun 30 Jun 31 Dec
2016 2015 2015
GBP GBP GBP
Cash and cash equivalents 2,979,790 1,267,409 2,516,820
Restricted cash 19,568 19,568 19,568
2,999,358 1,286,977 2,536,388
Restricted cash of GBP19,568 (30 Jun 2015 and 31 December 2015: GBP19,568) 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.
12. Trade and other payables
30 Jun 30 Jun 31 Dec
2016 2015 2015
GBP GBP GBP
Trade and other payables 2,914,578 2,028,020 2,079,035
Accruals 4,317,263 849,761 1,883,805
Deferred income 474,026 - 26,300
Player liabilities 413,204 387,512 338,825
8,119,071 3,265,293 4,327,965
The carrying value of trade and other payables classified as financial liabilities measured at amortised cost approximates fair value.
13. Share capital
Ordinary Shares
30 Jun 30 Jun 31 Dec
2016 2015 2015
GBP GBP GBP
261,633,292 (30 Jun
2015: 195,170,488 and
31 Dec 15: 249,208,292)
Ordinary Shares of 10
pence each 26,163,329 19,517,049 24,920,829
Movements in share capital
Number GBP
At 1 January 2015 and 30 June
2015 195,170,489 19,517,049
Ordinary shares issued for
cash consideration 49,900,578 4,990,058
Ordinary shares issued in
settling the Blueburra Holdings
Limited contingent consideration 4,137,225 413,722
At 31 December 2015 249,208,292 24,920,829
Ordinary shares issued for
cash consideration 7,625,000 762,500
Ordinary shares issued in
settling the Blueburra Holdings
Limited contingent consideration 4,800,000 480,000
----------------- ----------------
At 30 June 2016 261,633,292 26,163,329
----------------- ----------------
On 2 March 2016, 7,625,000 shares were issued at GBP0.20 per share for a total consideration of GBP1,525,000.
On 9 June 2016, 4,800,000 shares were issued at GBP0.25 per share to the previous shareholders of Blueburra Holdings Limited to satisfy the final GBP1,200,000 share element of vendor consideration.
14. Contingent and deferred consideration
Acquisition of Gaming Assets GBP
and Backstage Technologies Inc
Deferred consideration at 10
August 2015 4,705,682
Unwinding of discount on deferred
consideration 86,683
Foreign exchange movement on
deferred consideration 273,134
Deferred consideration at 31
December 2015 5,065,499
Unwinding of discount on deferred
consideration (note 4) 186,998
Foreign exchange movement on
deferred consideration (note
4) 566,103
Deferred consideration at 30
June 2016 5,818,600
Acquisition of Blueburra Holdings GBP
Limited
Contingent consideration at 1
January 2015 4,887,648
Unwinding of discount on contingent
consideration 72,583
Deferred consideration at 30
June 2015 4,960,231
Unwinding of discount on contingent
consideration 73,786
Fair value adjustment on contingent
consideration (134,017)
Payment of contingent consideration (1,250,000)
Contingent consideration on prior
period acquisition 105,000
Shares issued as part of the
consideration in a business combination (1,355,000)
Deferred consideration at 31
December 2015 2,400,000
Shares issued as part of the
consideration in a business combination (1,200,000)
Contingent consideration waived
with respect to the disposal
of third-party platform driven
website properties (1,200,000)
------------
Deferred consideration at 30 -
June 2016
15. Events after reporting date
On the 22 July 2016, the Group entered into sale and purchase agreement with Hullabu, Inc to acquire 62.5% of the share capital in Hullabu, Inc for a total cash consideration of USD 500,000. Hullabu are a Nevada corporation that develops social games including Hidden Artifacts, which is published by the Group. The acquisition will allow improved development and monetisation of the game. As of the approval date of the financial statements by the board, the Group had not completed the valuation of the fair value of the intangible assets and liabilities acquired and accordingly these disclosures are not provided in the financial statement.
On the 27 July 2016, the Group announced the subscription of 12,500,000 shares at GBP0.20 per share to raise GBP2,500,000. The subscription was completed by 2 September 2016. The net proceeds from this subscription were used in part repayment of the first deferred consideration payment of the $4m to Real Networks (GBP3.1m) included in the statement of financial position (note 14).
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR AKBDKCBKDBCD
(END) Dow Jones Newswires
September 13, 2016 02:00 ET (06:00 GMT)
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