We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for streaming realtime charts, analysis tools, and prices.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Gan Plc | LSE:GAN | London | Ordinary Share | GB00BGCC6189 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 225.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From May 2019 to May 2024
TIDMGAN
RNS Number : 0334S
GAN PLC
28 September 2017
LONDON STOCK EXCHANGE (LSE): GAN | IRISH STOCK EXCHANGE (ISE): GAME
2017 Half Year Report
Maiden Positive H1 clean EBITDA for the Period ended June 30, 2017
LSE: GAN ISE: GAME
London & Dublin | September 28, 2017: GAN plc ("GAN" or the "Group"), a leading B2B supplier of Internet gaming enterprise software-as-a-service solutions to the US land-based casino Industry, announces its results for the six months ended June 30, 2017.
GAN is pleased to report its maiden positive clean EBITDA(1) during a half-year period as a public company with trading for the remainder of the current financial year ahead of management expectations.
Financial Overview
-- 17% increase in gross income to GBP18.6m (H1 2016: GBP15.9m) -- Group Net Revenue of GBP4.1m (H1 2016: GBP3.9m), an increase of 6%
o Recurring revenues grew by 24% YoY and now account for 86% of Net Revenue
o The US and Italy accounted for 63% and 31% of Net Revenue respectively
-- Maiden positive H1 clean EBITDA(1) of GBP24,000 (H1 2016: loss of GBP0.5m) -- Loss after tax of GBP2.0m (H1 2016: Loss after tax of GBP2.3m) -- Basic loss per share of GBP0.03 (H1 2016: loss per share GBP0.04) -- Cash and cash equivalents at June 30, 2017 of GBP3.3m (GBP3.2m at December 31, 2016)
o Successfully completed Company's first debt issuance, raising gross proceeds of GBP2.0m in Q2 2017, positioning the Group for further growth
-- Net Assets at June 30, 2017 of GBP9.0m (H1 2016: GBP10.5m)
Operational Overview and Current Developments
-- Launched Simulated Gaming for five (5) new clients in the US during H1 2017 bringing total portfolio of live US casino operator clients to 13 as on June 30, 2017 (as on June 30, 2016: 5)
-- Executed definitive agreements to launch a real money Overseas Internet Casino for a major US casino operator to launch in Q4 2017
-- Signed second client for real money Regulated Gaming in New Jersey expected to launch in H1 2018 subject to customary regulatory consents
-- Won prestigious Internet gaming industry award in the US - eGaming Review North America's 'Freeplay Gaming Supplier of the Year' for Simulated Gaming(TM)
-- Post-period end, rapid increase in engineering support team in Bulgaria in order to increase availability of development resources
-- Post-period end, received in aggregate GBP2.2m in cash payments relating to the Overseas Internet Casino and 2016 claim relating to on-going research and development activity
-- Post-period end, established wholly-owned subsidiary in Tel Aviv, Israel to support user acquisition marketing worldwide for diverse GAN clients
Dermot Smurfit, CEO of GAN commented:
"The Group generated positive clean EBITDA(1) in H1 2017 following a substantial multi-year period of investment focused on the US land-based casino Industry. We anticipate this favourable EBITDA trend to continue throughout H2 2017.
The first half of 2017 saw continued growth in recurring revenues driven by the launch of five new clients of Simulated Gaming and strong growth in real money Regulated Gaming markets in the US and Europe.
We remain encouraged by the growth characteristics of Simulated Gaming and have already seen a major uplift in player activity as we begin to experience the onset of the seasonally strong Autumn/Fall period.
GAN's Overseas Internet Casino for one of the largest casino operating groups in the US represents the culmination of GAN's long-term mission to move land-based US casinos online in domestic US intra-State markets or selected International regulated markets. This represents an exciting new B2B business for GAN, which will benefit greatly from the client's material marketing investment.
As the numbers illustrate our Group has now moved into sustainable profitability at the clean EBITDA(1) level. Growth prospects for Simulated Gaming(TM) and real money Regulated Gaming continue to offer the Company a viable path to creating significant incremental shareholder value."
Notes
1. Clean EBITDA is a non GAAP company specific measure and excludes interest, tax, depreciation, amortisation, share based payment expense and other items which the directors consider to be non-recurring and one time in nature
Note regarding forward-looking statements
This announcement includes forward-looking statements, including statements concerning current expectations about future financial performance and economic and market conditions which GAN believes are reasonable. However, these statements are neither promises nor guarantees, but are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated.
For further information please contact:
Hot Features
Premium
GAN US Investors: The Equity
Group
Dermot Smurfit Adam Prior
Chief Executive Officer aprior@equityny.com
+44 (0) 20 7292 6262 212.371.8660
dsmurfit@GAN.com
UK & Ireland Investors:
Walbrook PR
Paul Cornelius
GAN@WalbrookPR.com
+44 20 7933 8780
Davy (Nominated
Adviser, ESM Adviser
and Joint Broker)
John Frain / Barry
Murphy
+353 1 679 6363
Liberum (Joint
Broker)
Neil Patel / Cameron
Duncan
+44 (0) 20 3100
2000
Half-Year Results | Conference Call Details
The GAN management team will host a conference call for analysts & institutional investors at 4pm BST (11am EST / 8am PST).
Please use the following dial in numbers:
UK Participants: 0800 756 3429 US & Canada Participants: 877-407-8629 International Participants: 201-493-6715
The Half Year Results Press Release and Presentation is available to download from the website, www.GAN.com
Half-Year Results | Webcast
The call will also be simultaneously webcast over the Internet via the following link:
http://gan.equisolvewebcast.com/h1-results
and such link will also be made available in the "Results and Presentations" section of GAN's website www.GAN.com/investors/results-and-presentations
GAN plc
FINANCIAL REVIEW
Summary
Net revenue for the six months ended 30 June 2017 was GBP4.1m compared to GBP3.9m for the six months ended 30 June 2016. Clean EBITDA of GBP24,000 is GBP0.6m favourable to the prior year period clean EBITDA loss of GBP0.5m. Loss after taxation of GBP2.0m for the current period compared to a loss before and after taxation of GBP2.3m in the comparative period.
The Group continues to benefit from focusing on building its recurring revenue base in both of its primary markets, the US and Italy, while accelerating measures to reduce the underlying cost base of the business without compromising product or customer delivery. Overall B2B and B2C recurring revenues have grown by 24% year on year and now represent 86% of total net revenue compared to 76% in the comparative half year period. The US remains the Group's principal market and net revenue of GBP2.6m increased by GBP0.1m over the comparative period and accounts for 63% of total net revenue. Real money gaming revenue from the Italian market has increased by 33% and now represents 31% of total net revenue. The group has continued to rationalise its cost base principally through the expansion of its technical development office in Bulgaria.
On 28 April, 2017, the Group announced that it had raised gross proceeds of GBP2.0m through the successful placing of a 9% unsecured convertible loan note issue. The new capital will enable the Group to take advantage of expected real money regulated gaming opportunities in the US as well as for working capital and general business development opportunities.
Cash and cash equivalents at the end of the period was GBP3.3m compared to GBP4.0m at 30 June 2016 and GBP3.2m at 31 December 2016. Net Assets at 30 June 2017 of GBP9.0m compared to GBP10.5m at 30 June 2016 and GBP10.9m for the year ended 31 December 2016.
Revenue
Gross income of GBP18.6m for the six months ended 30 June 2017 represents an increase of GBP2.7m compared to the period ended 30 June 2016. Net revenue for the period of GBP4.1m is GBP0.2m higher than the comparative six month period primarily due to increased revenue share from both the Italian and US markets. B2B net revenue of GBP3.9m is GBP0.2m, 5% higher than the comparative period while B2C net revenue of GBP0.2m is consistent with the prior year period.
The Group categorises B2B net revenue into two distinct revenue streams; revenue share and other revenue (recurring in nature) and game and platform development (one time and primarily non-recurring in nature). Recurring revenues are principally generated in the real money gaming markets of Italy in Europe and New Jersey in the US and by Simulated Gaming(TM) markets in the US and Australia. B2B recurring revenues have increased by 26% from GBP2.7m in the prior year comparative period to GBP3.4m for the six months ended June 30 2017 and account for 82% of overall Group net revenue. This growth has been due to increases in both Simulated Gaming(TM) and real money gaming revenues from the US and Italian markets. Game and platform development revenue has decreased to GBP0.6m from GBP1.0m in the first half of 2016 as a result of reduced non-recurring real money gaming platform development fees in the US market.
Expenses
Distribution costs include royalties payable to third parties, B2B and B2C direct marketing expenditure, the direct costs of operating the hardware platforms deployed across the business, and depreciation and amortisation, which in total have increased from GBP3.4m in the comparative period to GBP3.6m for the six months ended 30 June 2017. The increase is due primarily to amortisation of intangible assets of GBP1.9m (2016 HY: GBP1.4m), an increase of GBP0.5m, as a result of our substantial investment in product and system development and also due to increased royalties payable to providers of third party games content in Italy for real money gaming and in the US for Simulated Gaming(TM) consequent to increased revenues. Expenditure on B2B marketing and technology infrastructure has reduced significantly, partially offsetting the increased amortisation and royalty expenditure, as the Group continues to benefit from prior period investment in these areas.
Administration expenses include the costs of personnel and related expenditure for the London, Las Vegas and Sofia offices. Total administrative expenses have increased slightly from GBP2.8m in the prior year comparative period to GBP2.9m for the six months ended 30 June 2017. Reduced ongoing expenditure on personnel and related expenditure as
GAN plc
FINANCIAL REVIEW (Continued)
a result of a headcount restructuring earlier in the period has been offset by the impact of redundancy costs and unfavourable foreign exchange movements.
EBITDA
Clean EBITDA is a non GAAP company specific measure and excludes interest, tax, depreciation, amortisation, share based payment expense and other items which the directors consider to be non-recurring and one time in nature. The directors regard Clean EBITDA as a reliable measure of profits that is not unduly subjective.
Clean EBITDA for the six month period ended 30 June 2017 of GBP24,000 is GBP0.6m better than the comparative figure (2016 Clean EBITDA loss of GBP0.5m), primarily due to increased B2B net revenue of GBP0.2m and reduced distribution and administration expenses before depreciation, amortisation and exceptional items of GBP0.4m.
Cashflow
The cash balance at 30 June 2017 was GBP3.3m representing an increase of GBP0.1m from 31 December 2016 (GBP3.2m). During the six month period, the Group has continued to invest in its Internet Gaming System deployment capability and product enhancement however cash has increased by GBP0.1m from the year-end balance at 31 December 2016 (GBP3.2m) as a result of the 9% unsecured convertible loan note issue in April 2017 which generated GBP2.0m in gross proceeds.
In addition to operating cash outflow before movements in working capital and taxation of GBP0.3m, cash outflows during the period include GBP1.7m in incremental investment in intangible fixed assets primarily related to the capitalisation of internal development time and working capital movement of GBP0.1m offset by cash generated from financing activities of GBP2.0m following the issue of the convertible loan note in April of this period. Net cash generated during the period of GBP0.1m resulted in an increased cash balance at 30 June 2017 of GBP3.3m.
Outlook
B2B revenue share and other revenue is expected to show continued growth for the second half of the year. In the US market, revenues from the 13 US based Simulated Gaming(TM) casino operators at 30 June 2017 are expected to benefit from the seasonally strong autumn period and the impact of full year revenues for operators launched during the first half of the year. The Group began the year with nine Simulated Gaming(TM) operators, including one operator in Australia, and launched five new casino operators during the period; Turning Stone Resort Casino in March and a further four operators in May including Winstar World Casino and Resort. The Group expects to experience significant growth in Simulated Gaming(TM) revenues in the second half of the year as a result of these new launches and from further product development expected to generate incremental revenues for both new and existing operators. In addition, the strong revenue growth from Italian real money gaming operators realised in the six months ended 30 June 2017 is expected to persist for the remainder of the year.
B2B game and platform development revenues are expected to increase in the second half of the year primarily due to development revenues to be recognised upon the launch of a new real money gaming website and mobile application as a result of an extension of an existing partnership with a major US casino operator.
The Group expects distribution costs to increase due to increased royalties payable to third parties as a result of increased Italian real money gaming revenues and US Simulated Gaming(TM) revenues. Administrative expenses before foreign exchange movements are expected to remain stable in the second half of the year as the Group continues to expand its technical development office in the lower cost market of Bulgaria.
The Group has raised gross proceeds year to date of GBP2.0m in order to take advantage of expected real money regulated gaming opportunities in the US as well as for working capital and general business development opportunities.
GAN plc
FINANCIAL REVIEW (Continued)
KEY PERFORMANCE INDICATORS
The performance of the Group during the period demonstrates the Group's strategy to grow recurring revenues through both its real money gaming business in the US and Italy and its Simulated Gaming(TM) business in the US and Australia. The directors regard clean earnings before interest, tax, depreciation, amortisation, share based payment expense and other items ("Clean EBITDA") as a reliable measure of profits and the Group's key performance indicators are set out below:
H1 2017 H1 2016
GBP000 GBP000
Gross income from gaming operations and services 18,581 15,942
Net revenue 4,141 3,912
Clean EBITDA 24 (548)
Net assets 8,978 10,526
Cash and cash equivalents 3,322 3,966
The Board also monitor customer related KPIs, including number of active players, revenue by partner, business segment profitability and geographic split of turnover.
GAN plc
For the period ended 30 June 2017
Consolidated statement of comprehensive income
Year ended
Six months ended Six months ended 31 December
30 June 2017 30 June 2016 2016
GBP000 GBP'000 GBP'000
Notes Unaudited Unaudited Audited
------- ---------------------- ---------------------- --------------
Continuing Operations
Gross income from gaming operations and
services 18,581 15,942 31,675
====================== ====================== ==============
Net
revenues...................................
......................... 3 4,141 3,912 7,803
Distribution
costs......................................
.............. (3,638) (3,424) (7,423)
Administrative
expenses...................................
..... (2,873) (2,814) (5,600)
---------------------- ---------------------- --------------
Total operating
costs......................................
........ (6,512) (6,238) (13,023)
--------------------------------------------- ------- ---------------------- ---------------------- --------------
Clean
EBITDA.....................................
..................... 24 (548) (932)
Depreciation...............................
.............................. (140) (217) (375)
Amortisation of intangible
assets......................... (1,881) (1,426) (3,203)
Exceptional
costs......................................
............... 5 (343) (85) (411)
Impairment of intangible
assets............................. - - (142)
Employee share--based payment
charge............... (30) (50) (157)
--------------------------------------------- ------- ---------------------- ---------------------- --------------
Operating
(loss).....................................
................. (2,370) (2,326) (5,220)
Finance
income.....................................
................... 4 10 21
Finance (30) -
costs.......................................
.................... -
---------------------- ---------------------- --------------
(Loss) before
taxation...................................
.......... (2,396) (2,316) (5,199)
Tax
credit.....................................
.............................. 404 - 1,440
---------------------- ---------------------- --------------
Loss for the period attributable to owners
of the Group and total comprehensive income
for
the period (1,992) (2,316) (3,759)
====================== ====================== ==============
Basic earnings per share attributable to
owners of the parent during the period
Basic
(pence)....................................
........................ 9 (2.87) (3.84) (5.81)
Diluted
(pence)....................................
..................... 9 (2.87) (3.84) (5.81)
Clean EBITDA is a non GAAP company specific measure and excludes interest, tax, depreciation, amortisation, share based payment expenses and other items which the directors consider to be non-recurring and one time in nature. Where not explicitly mentioned, EBITDA refers to EBITDA from continuing operations.
GAN plc
For the period ended 30 June 2017
Consolidated statement of financial position
At 30 June At 30 June At 31 December
2017 2016 2016
GBP'000 GBP'000 GBP'000
Notes Unaudited Unaudited Audited
------- ------------ ------------------------ ------------------------
Non--current assets
Intangible
assets...................................
................... 6,226 6,047 6,433
Property, plant and
equipment.............................. 361 608 479
Lease
deposits.................................
........................ 170 170 170
Deferred tax -
asset.....................................
............... - 510
------------ ------------------------ ------------------------
6,757 7,335 7,082
------------ ------------------------ ------------------------
Current assets
Inventory................................. -
................................. - 77
Trade and other
receivables..............................
..... 6 2,976 2,882 2,834
Research And Development tax credit
receivable...............................
.........................................
........ 1,467 - 1,061
Cash and cash
equivalents..............................
...... 3,322 3,966 3,179
------------ ------------------------ ------------------------
7,765 6,925 7,074
------------ ------------------------ ------------------------
Total
assets...................................
........................... 14,522 14,260 14,156
============ ======================== ========================
Current liabilities
Trade and other
payables.................................
...... 7 3,322 3,418 2,995
------------ ------------------------ ------------------------
Total
liabilities..............................
.......................... 3,322 3,418 2,995
------------ ------------------------ ------------------------
Non-current liabilities
Long Term
Loan.....................................
. 7 2,031 - -
Other
payables.................................
........................ 7 191 316 221
------------ ------------------------ ------------------------
Total non-current
liabilities..............................
... 2,222 316 221
------------ ------------------------ ------------------------
Equity attributable to equity holders of
parent
Share
capital..................................
........................... 8 701 653 701
Share premium
account..................................
......... 18,809 17,135 18,809
Retained
earnings.................................
................... (10,532) (7,262) (8,570)
------------ ------------------------ ------------------------
8,978 10,526 10,940
------------ ------------------------ ------------------------
Total equity and
liabilities..............................
....... 14,522 14,260 14,156
============ ======================== ========================
GAN plc
For the period ended 30 June 2017
Consolidated statement of changes in equity
Share Share Retained Total
capital premium earnings equity
GBP'000 GBP'000 GBP'000 GBP'000
--------- --------- ---------- ---------
At 1 January
2016.......................................................................................... 560 14,592 (4,968) 10,184
Loss and total comprehensive income for the period................................ - - (2,316) (2,316)
Employee share--based payment charge...................................................... - - 22 22
Issue of equity share
capital.......................................................................... 93 2,543 - 2,636
--------- --------- ---------- ---------
At 30 June 2016
(Unaudited)........................................................................ 653 17,135 (7,262) 10,526
Loss and total comprehensive income for the period................................ - - (1,443) (1,443)
Employee share--based payment charge...................................................... - - 135 135
Issue of equity share
capital.......................................................................... 48 1,674 - 1,722
--------- --------- ---------- ---------
At 31 December
2016.................................................................................... 701 18,809 (8,570) 10,940
Loss and total comprehensive income for the period................................ - - (1,992) (1,992)
Employee share--based payment charge...................................................... - - 30 30
At 30 June 2017
(Unaudited)........................................................................ 701 18,809 (10,532) 8,978
========= ========= ========== =========
The following describes the nature and purpose of each reserve within equity:
Share Capital Represents the nominal value of shares allotted, called up and fully paid
Share Premium Represents the amount subscribed for share capital in excess of nominal value
Retained Earnings Represents the cumulative net gains and losses recognised in the consolidated statement of
comprehensive income
GAN plc
For the period ended 30 June 2017
Consolidated statement of cash flows
Period ended Period ended
30 June 2017 30 June 2016 Year ended 31 December 2016
GBP'000 GBP'000 GBP'000
Unaudited Unaudited Audited
--------------- --------------- -----------------------------
Cash flow from operating activities
Loss for the period before
taxation....................... (1,992) (2,316) (3,759)
Adjustments for:
Amortisation of intangible
assets......................... 1,881 1,426 3,203
Impairment of intangible
assets.................... - - 412
Depreciation of property, plant and equipment... 132 217 375
(Profit)/Loss on disposal of fixed
asset................ - - 77
Share based payment
expense............................... 30 50 157
Tax
credit...........................................
... (404) - (1,440)
Net finance
cost/(income)....................................
.. 26 (10) (21)
Foreign
exchange.........................................
............ 34 (281) (408)
--------------- --------------- -----------------------------
Operating cash flow before movement in working
capital and taxation
................................................
................ (293) (914) (1,404)
(Increase) in trade and other
receivables............. (141) (548) (566)
Increase/(Decrease) in trade and other
payables.......... 297 113 (236)
Taxation........................................
...... - 582 1,471
Net cash flows from
operations............................ (137) (767) (735)
Cash flow from investing activities
Interest
received.........................................
............. 4 10 21
Purchase of intangible
assets................................ (1,673) (1,905) (4,480)
Purchase of property, plant and equipment........ (14) (18) (46)
--------------- --------------- -----------------------------
Net cash used in investing
activities................... (1,683) (1,913) (4,505)
Cash flow from financing activities
Net proceeds on issue of
shares........................... - 2,608 4,358
Net proceeds on issue of convertible
loan.......... 2,001 - -
--------------- --------------- -----------------------------
Net cash generated from financing activities.... 2,001 2,608 4,358
--------------- --------------- -----------------------------
Net increase/(decrease) in cash and cash
equivalents 181 (72) (882)
Cash and cash equivalents at beginning of period 3,179 3,779 3,779
Effect of foreign exchange rate
changes.............. (38) 259 282
--------------- --------------- -----------------------------
Cash and cash equivalents at end of period 3,322 3,966 3,179
=============== =============== =============================
GAN plc
For the period ended 30 June 2017
Notes to the financial statements
1. Basis of preparation and accounting policies
The financial information in this document has been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards, International Accounting Standards and interpretations (collectively, "IFRS") issued by the International Accounting Standards Board (IASB) as adopted by the European Union ("adopted IFRSs").
The financial information for the period ended 30 June 2017 does not constitute the full statutory accounts for that period. 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 Statements 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 28 September 2017. 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, with the addition of a new accounting policy to reflect the issue of a convertible loan note during the year. The loan note will be treated as debt, without any equity component, in line with management judgement, including annual interest accrued on a straight line basis. These accounting policies will form the basis of the 2017 financial statements.
Adoption of new and revised standards
In the current period the Group has adopted all of the new and revised standards and interpretations issued by the IASB and the International Financial Reporting Interpretations Committee (IFRIC) of the IASB, as they have been adopted by the European Union, that are relevant to its operations and effective for accounting years beginning on 1 January 2017. None of the new standards adopted had a material impact on the Financial Statements of the Group.
New standards, amendments to standards and interpretations have been issued but are not effective (and in some cases had not yet been adopted by the EU) for the financial year beginning 1 January 2017. These have not been early adopted and the Directors are still considering the potential impact of IFRS9: Financial Instruments, IFRS15: Revenue from Contracts with customers and IFRS 16: Leases.
2. Judgements and estimates
The preparation of interim financial statements in conformity with IFRSs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.
In preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were consistent with those that applied to the consolidated financial statements as at and for the year ended 31 December 2016. In issuing the convertible loan note during the year, management have made judgement that the interest rate of the loan reflects the fair value of the debt and therefore there is no equity component to be recognised.
The risks and uncertainties and significant estimates and judgements faced by the Group have not changed significantly since the 2016 Annual Report was published and are not expected to change significantly during the remaining six months of the financial year.
GAN plc
For the period ended 30 June 2017
Notes to the financial statements (continued)
3. Net revenue
Period ended Period ended Year ended
30 June 30 June 31 December
2017 2016 2016
GBP'000 GBP'000 GBP'000
Unaudited Unaudited Audited
-------------- -------------- --------------
Game and platform development...................... 584 1,036 2,226
Revenue share and other revenue.................... 3,380 2,675 5,168
Other..............................................................
....... 177 201 409
-------------- -------------- --------------
Total revenue..................................... 4,141 3,912 7,803
============== ============== ==============
4. Segmental information
Information reported to the Group's Chief Executive, the strategic chief operating decision--maker, for the purposes of resource allocation and assessment of the Group's segmental performance is primarily focused on the origination of the revenue stream. The Group's reportable segment under IFRS 8 is Business to business ("B2B").
In the prior year the Group reported principal segments of "B2B and "B2C". The current distinction between segments has been agreed by the Board in light of the continued strategic move toward a B2B only market, the relative insignificance of the B2C operations, and reflects the management reporting to the chief operating decision maker. The category 'Other' reflects the group's B2C operations, which the Board consider is no longer a reportable segment.
Segment revenues and results
The following is an analysis of the Group's revenue and results by reportable segment.
B2B Other Total
Period ended 30 June 2017 (Unaudited) GBP'000 GBP'000 GBP'000
---------------------------------------------------------------------------------- ---------- ---------- ----------
Net
revenue.........................................................................
.................... 3,964 177 4,141
Distribution costs (excluding depreciation and amortisation)......... (1,487) (130) (1,617)
---------- ---------- ----------
Segment
result..........................................................................
............... 2,477 47 2,524
========== ==========
Administration
expenses....................................................................... (2,873)
Depreciation....................................................................
........................ (140)
Amortisation of intangible
assets........................................................ (1,881)
Finance
income..........................................................................
............. 4
Finance
expenses........................................................................
............ (30)
----------
Loss before
taxation........................................................................
....... (2,396)
Taxation........................................................................
............................ 404
----------
Loss for the period after
taxation......................................................... (1,992)
==========
GAN plc
For the period ended 30 June 2017
Notes to the financial statements (continued)
B2B Other Total
Period ended 30 June 2016 (Unaudited) GBP'000 GBP'000 GBP'000
---------------------------------------------------------------------------------- ---------- ---------- ----------
Net
revenue.........................................................................
.................... 3,711 201 3,912
Distribution costs (excluding depreciation and amortisation)......... (1,636) (145) (1,781)
---------- ---------- ----------
Segment
result..........................................................................
............... 2,075 56 2,131
========== ==========
Administration
expenses....................................................................... (2,814)
Depreciation....................................................................
........................ (217)
Amortisation of intangible
assets........................................................ (1,426)
Finance
income..........................................................................
............. 10
----------
Loss before
taxation........................................................................
....... (2,316)
Taxation.........................................................................
........................... -
----------
Loss for the period after
taxation......................................................... (2,316)
==========
B2B Other Total
Year ended 31 December 2016 (Audited) GBP'000 GBP'000 GBP'000
---------------------------------------------------------------------------------- ---------- ---------- ----------
Net
revenue.........................................................................
.................... 7,394 409 7,803
Distribution costs (excluding depreciation and amortisation)......... (3,127) (305) (3,432)
---------- ---------- ----------
Segment
result..........................................................................
............... 4,267 104 4,371
========== ==========
Administration
expenses....................................................................... (5,602)
Depreciation....................................................................
........................ (375)
Amortisation of intangible
assets........................................................ (3,203)
Impairment of intangible
assets............................................................ (411)
----------
Finance
income..........................................................................
............. 21
----------
Loss before
taxation........................................................................
....... (5,199)
Tax credit/
(charge)........................................................................
......... 1,440
----------
Loss for the year after
taxation............................................................. (3,759)
==========
The accounting policies of the reportable segments follow the same policies as described in note 1. Segment result represents the gross profit earned by each segment without allocation of the share of administration costs including Directors' salaries, finance costs and income tax expense. This is the measure reported to the Group's Chief Executive for the purpose of resource allocation and assessment of segment performance.
Administration expenses comprise principally the employment and office costs incurred by the Group.
Segment assets and liabilities
Assets and liabilities are not separately analysed or reported to the Group's Chief Executive and are not used to assist in decisions surrounding resource allocation and assessment of segment performance. As such, an analysis of segment and liabilities has not been included in this financial information.
GAN plc
For the period ended 30 June 2017
Notes to the financial statements (continued)
Geographical analysis of revenues
This analysis is determined based upon the location of the legal entity of the customer.
Period Period Year
ended ended ended
30 June 30 June 31 December
2017 2016 2016
GBP'000 GBP000 GBP'000
Unaudited Unaudited Audited
------------ ------------ --------------
UK and Channel
Islands.......................................................... 223 280 574
Italy...................................................................
.......................... 1,280 965 2,015
USA.....................................................................
........................ 2,591 2,491 4,955
Australia...............................................................
...................... 47 176 259
4,141 3,912 7,803
============ ============ ==============
Geographical analysis of non--current assets
At At At
30 June 30 June 31 December
2017 2016 2016
GBP'000 GBP'000 GBP'000
Unaudited Unaudited Audited
------------ ------------ --------------
UK and Channel Islands.................................................. 6,412 6,517 6,581
USA.....................................................................
................ 342 295 493
Italy...................................................................
................... 3 13 8
------------ ------------ --------------
6,757 6,825 7,082
============ ============ ==============
5. Exceptional costs
Period Period Year
ended ended ended
30 June 30 June 31 December
2017 2016 2016
GBP'000 GBP'000 GBP'000
Unaudited Unaudited Audited
------------ ------------ --------------
Compensation for loss of office, redundancy and compromise costs,
together with associated legal expenses........................... 320 11 4
Key management relocation costs........................................ 9 2 51
Other exceptional
costs.......................................................... 14 72 87
------------ ------------ --------------
343 85 142
============ ============ ==============
GAN plc
For the period ended 30 June 2017
Notes to the financial statements (continued)
6. Trade and other receivables
At At At
30 June 30 June 31 December
2017 2016 2016
GBP'000 GBP'000 GBP'000
Unaudited Unaudited Audited
------------ ------------ --------------
Trade
receivables.............................................................
........ 1,783 1,617 1,757
Other
receivables.............................................................
........ 258 290 251
Prepayments and accrued income......................................... 935 975 826
------------ ------------ --------------
2,976 2,882 2,834
============ ============ ==============
Other receivables include amounts due from payment service providers and VAT recoverable.
Non--current assets
At At At
30 June 30 June 31 December
2017 2016 2016
GBP'000 GBP'000 GBP'000
Unaudited Unaudited Audited
------------ ------------ --------------
Lease
deposits................................................................
... 170 170 170
------------ ------------ --------------
170 170 170
============ ============ ==============
Non-current assets relate to the deposits provided in respect of leased office space. The amount is repayable in accordance with the terms of the agreement.
7. Trade and other payables
At 30 June At 30 June
2017 2016 At 31 December 2016
GBP'000 GBP'000 GBP'000
Unaudited Unaudited Audited
------------ -------------- -----------------------
Amounts falling due within one year
Trade
payables.....................................................
.................... 2,272 1,999 1,600
Other taxation and social
security......................................... 104 157 146
Other
payables.....................................................
.................... 163 222 170
Accruals and deferred
income............................................... 783 1,040 1,079
------------ -------------- -----------------------
3,322 3,418 2,995
============ ============== =======================
GAN plc
For the period ended 30 June 2017
Notes to the financial statements (continued)
7. Trade and other payables (continued)
Non--current liabilities
At At At
30 June 30 June 31 December
2017 2016 2016
GBP'000 GBP'000 GBP'000
Unaudited Unaudited Audited
------------ ------------ --------------
Accruals................................................................
.............. 123 197 160
Deferred
consideration..................................................... 68 119 61
------------ ------------ --------------
191 316 221
============ ============ ==============
Long term loan
In April 2017, the Group raised GBP2m following issue of 2,001,483 GBP1 Convertible Unsecured loan notes.
The loan notes have an interest rate of 9% payable quarterly in arrears from 1 January 2018, with redemption in April 2022. During the period interest of GBP30,000 was accrued in relation to the loan notes.
The loan notes can be converted into Ordinary shares at a conversion price of 45.5p per Ordinary share, provided noteholders pass a special resolution resolving to convert them.
The directors do not believe there is any equity component of the convertible loan as the interest rate reflects the fair value of the debt and therefore the loan note is treated as a liability.
8. Share capital
At At At
30 June 30 June 31 December
2017 2016 2016
GBP'000 GBP'000 GBP'000
Unaudited Unaudited Audited
------------ ------------ --------------
Ordinary
shares..................................................................
...... 701 653 701
701 653 701
============ ============ ==============
Issue of shares
(i) 9,331,888 ordinary shares of 1p each were issued at a premium of 27p during the year ended 31December 2016 generating gross proceeds of GBP2,612,929.
(ii) 1,500,000 ordinary share of 1p each were issued at a premium of 29p during the year ended 31December 2016 generating gross proceeds of GBP450,000.
(iii) 3,250,000 ordinary share of 1p each were issued at a premium of 39p during the year ended 31December 2016 generating gross proceeds of GBP1,300,000.
GAN plc
For the period ended 30 June 2017
Notes to the financial statements (continued)
9. Earnings per share
Basic earnings per share is calculated by dividing the profit/(loss) attributable to equity shareholders of the company by the weighted average number of ordinary shares in issue during the period.
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The company has issued share options and a calculation is done to determine the number of shares that could have been acquired at fair value (determined as the average market share price for the period) based on the monetary value of the subscription rights attached to the outstanding share options. All share options are anti-dilutive at the current and prior year reporting dates and the number of shares calculated as above is compared with the number of shares that would have been issued assuming the exercise of the share options.
Period Period Year
ended ended ended
30 June 30 June 31 December
2017 2016 2016
Pence Pence Pence
Unaudited Unaudited Audited
------------ ------------ --------------
Basic...................................................................
....................... (2.87) (3.84) (5.81)
------------ ------------ --------------
Diluted.................................................................
...................... (2.87) (3.84) (5.81)
------------ ------------ --------------
Period Period Year
ended ended ended
30 June 30 June 31 December
2017 2016 2016
GBP'000 GBP'000 GBP'000
Earnings Unaudited Unaudited Audited
-------------------------------------------------------------------------- ------------ ------------ --------------
(Loss) for the
period................................................................ (1,992) (2,316) (3,759)
------------ ------------ --------------
Period Period Year
ended ended ended
30 June 30 June 31 December
2017 2016 2016
Number Number Number
Denominator Unaudited Unaudited Audited
------------------------------------------------------------ ------------ ------------ --------------
Weighted average number of equity shares (basic).......... 69,508,773 60,282,436 64,647,746
------------ ------------ --------------
Weighted average number of equity shares for diluted EPS 69,508,773 60,282,436 64,647,746
------------ ------------ --------------
10. Related party transactions
The offer of a 9% Convertible Loan Note for a consideration of GBP2million in April 2017 was in part accepted by Roger Kendrick for GBP94,822, who is a director, Michael Smurfit Jnr for GBP3,988, who is a director and Sir Michael Smurfit for GBP1,854,154, who is a related party to Michael Smurfit Jnr.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SELEFWFWSEDU
(END) Dow Jones Newswires
September 28, 2017 02:01 ET (06:01 GMT)
1 Year Gan Chart |
1 Month Gan Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
