GoTech Group plc Unaudited Interim Results

 
TIDMGOT 
 
This announcement contains inside information as stipulated under the Market 
                   Abuse Regulation (EU) No 596/2014 (MAR). 
 
        GoTech Group plc / Index: AIM / Epic: GOT.L / Sector: Software 
 
21 April 2017 
 
                               GoTech Group plc 
 
                    ("GoTech", the "Company" or the "Group") 
 
                           Unaudited Interim Results 
 
GoTech, the sports and wellbeing focused technology company, announces its 
unaudited interim results for the six months ended 31 March 2017. 
 
Chairman's Statement 
 
It is nearly a year since the Company commenced trading on AIM with significant 
advances achieved during this time resulting in the transformation of GoTech 
into a technology company focused on innovation in physical education and sport 
tracking and performance.  Amongst other things, we have: streamlined the 
business; strengthened our strategy; initiated a new innovative programme; 
changed the Company's name to better reflect its business interests and stated 
strategy; launched a new corporate website; and bolstered our Board and 
management. 
 
Our core focus remains on Skills2Achieve ('S2A'), a digital, physical literacy 
assessment programme for the UK school market.  Developed with the Youth Sport 
Trust ('YST'), a leading charity for sports-driven and educational programmes, 
S2A aims to improve the health and wellbeing of young people, drive achievement 
and impact whole school improvement. 
 
Whilst sales of S2A remained at a low level, resulting in the loss for the 
period of GBP288,000 (2016: GBP257,000 loss), it continues to be well received by 
the schools that are using it and sector professionals.  To understand how best 
to achieve a higher level of sales to schools we undertook a sales review. 
This concluded that our focus should be on our new sponsorship programme, the 
Champions Programme, which enables philanthropic organisations, corporate 
sponsors (as part of their CSR activities) and High Net Worth Individuals 
('HNWIs') to acquire packages of S2A licences for the benefit of clusters of 
primary schools of their choice.  The Saracens Sport Foundation, the charitable 
arm of Saracens F.C., one of the UK's leading rugby union clubs, Haileybury 
School, one of the UK's leading independent secondary schools, and various 
HNWIs are amongst those that have already signed up to the programme.  We also 
have a good pipeline of other potential S2A Champions and we are pursuing 
specific opportunities for this sales activity, including a product messaging 
and branding review for maximum effect. 
 
The Board remains confident that these sales initiatives will be successful but 
appreciates that selling multiple licences in this manner will likely involve a 
longer sales cycle, although should result in higher value contracts with an 
increased propensity of renewal.  The Board is, therefore, hopeful that take-up 
will improve in the second half of the year thus resulting in higher sales and 
reduced losses.  In advance of the generation of significant revenues from 
these initiatives, the Company has taken the necessary steps to run the Group 
in a prudent way to preserve value for shareholders including reducing the cost 
base of the Group where appropriate. 
 
In tandem with advancing S2A, the Board has been considering complementary 
business initiatives within the sports technology sector with a view to 
progressing towards profitability.  The Board is keen to consider all possible 
opportunities, both organic and acquisitive, which may drive an increase in 
shareholder value.  These initiatives are progressing well and we hope to 
update the market on progress soon. 
 
The Company has today convened a general meeting at which it is seeking 
approval for the Directors to allot shares, disapplying pre-emption rights, up 
to an aggregate nominal value of GBP155,311.16.  This value includes authorities 
already granted, but which fall away following approval of the proposed 
resolutions, for warrants which are in existence and have already been 
disclosed to shareholders.  Approval of the resolutions at the general meeting 
will give the Company flexibility to act quickly in response to any 
opportunities presented to it, including raising funds, if required, to fund 
the existing S2A business or to support any add on acquisitions or business 
opportunities which the Board may consider it appropriate to pursue. 
 
Looking ahead, I am confident that our long-term strategy and highly driven 
team will ultimately see GoTech prosper.  In a nutshell, S2A is a unique 
proposition that is gaining serious interest from leading organisations such as 
the NHS; our strategy to create a business with multiple revenue streams 
including the collection and analysis of valuable data is progressing well; and 
we are actively pursuing other opportunities that we believe will be earnings 
enhancing and help build the GoTech brand. 
 
I would like to thank our team for their commitment and efforts during the 
period as well as our shareholders for their continued support. 
 
A Humphreys 
 
Chairman 
 
CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHSED 31 MARCH 2017 
 
                                              Six months   Six months        Year 
 
                                                   ended        ended       ended 
 
                                                31/03/17     31/03/16    30/09/16 
 
                                             (Unaudited)  (Unaudited)   (Audited) 
 
                                                    GBP000         GBP000        GBP000 
 
Revenue                                               35            0          40 
 
Cost of Sales                                        (8)            0        (51) 
 
Gross Profit (loss)                                   27            0        (11) 
 
Administrative expenses                            (315)        (257)       (878) 
 
Operating loss                                     (288)        (257)       (889) 
 
Share of loss of associate undertakings                0            0        (57) 
 
Impairment charge                                      0            0     (2,964) 
 
Loss before taxation                               (288)        (257)     (3,910) 
 
Income tax expense                                     0            0           0 
 
Loss for the year                                  (288)        (257)     (3,910) 
 
Basic loss per share                            (0.213p)     (0.730p)    (5.520p) 
 
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 
 
                                              At 31/3/17   At 31/3/16  At 30/9/16 
 
                                             (Unaudited)  (Unaudited)   (Audited) 
 
                                                    GBP000         GBP000        GBP000 
 
Investments                                            0            0           0 
 
Intangible assets                                      0            0           0 
 
Trade receivables                                     31          157         121 
 
Cash and cash equivalents                            485           13         714 
 
Total Assets                                         516          170         835 
 
Share Capital                                      6,501        6,401       6,501 
 
Share premium                                     16,987       13,082      16,987 
 
Share option Reserve                                   4            3           4 
 
Retained earnings                               (23,260)     (19,319)    (22,972) 
 
Total Equity                                         232          167         520 
 
Trade and other payables                             284            3         315 
 
Total equity and liabilities                         516          170         835 
 
CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHSED 31 MARCH 2017 
 
                                              Six months   Six months        Year 
 
                                                   ended        ended       ended 
 
                                                31/03/17     31/03/16    30/09/16 
 
                                             (Unaudited)  (Unaudited)   (Audited) 
 
                                                    GBP000         GBP000        GBP000 
 
Cash flows from continuing operations 
 
Operating loss before taxation                     (288)        (257)       (889) 
 
Adjustments for: 
 
Share-based payment expense                            0            0           1 
 
Decrease / (increase) in trade and other              90         (89)        (48) 
receivables 
 
(Decrease) / increase in trade and other            (31)         (30)       (273) 
payables 
 
Net cash flow from operating activities            (229)        (376)     (1,209) 
 
Cash flows from investing activities 
 
Acquisition of subsidiaries                            0            0        (13) 
 
Add cash acquired on acquisition of                    0            0          42 
subsidiaries 
 
Net cash inflow / (outflow) from investing             0            0          29 
activities 
 
Cash flows from financing activities 
 
Issue of new shares net of expenses                    0          383       1,888 
 
Net cash inflow from financing activities              0          383       1,888 
 
Net (decrease) / increase in cash and cash         (229)            7         708 
equivalents 
 
Cash and cash equivalents at beginning of            714            6           6 
the period 
 
Cash and cash equivalents at end of the              485           13         714 
period 
 
STATEMENT OF CHANGES IN EQUITY 
 
GROUP 
 
                                         Share      Share   Share option   Retained 
 
                                       capital    premium        reserve   earnings Total 
 
                                          GBP000       GBP000           GBP000       GBP000  GBP000 
 
Balance at 1 October 2016                6,501     16,987              4   (22,972)   520 
 

Comprehensive loss for the period            0          0              0      (288) (288) 
 
Balance at 31 March 2017                 6,501     16,987              4   (23,260)   232 
 
                                         Share      Share   Share option   Retained 
 
                                       capital    premium        reserve   earnings Total 
 
                                          GBP000       GBP000           GBP000       GBP000  GBP000 
 
Balance at 1 October 2015                6,382     12,718              3   (19,062)    41 
 
Comprehensive loss for the period            0          0              0      (257) (257) 
 
Equity issued                               19        364              0          0   383 
 
Balance at 31 March 2016                 6,401     13,082              3   (19,319)   167 
 
 
NOTES TO THE HALF-YEARLY RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2017 
 
1. BASIS OF PREPARATION 
 
The interim report is unaudited and does not constitute statutory accounts 
within the meaning of s.498 of the Companies Act 2006. The statutory accounts 
for 2017, which were prepared under IFRS, have been delivered to the Registrar 
of Companies. The auditor's opinion on these accounts was unmodified and did 
not contain a statement under s.498 of the Companies Act 2006. 
 
The interim financial information has been prepared on a basis which is 
consistent with the accounting policies adopted by the Company for the last 
financial statements and in compliance with IAS 34. Comparative figures are 
given for the six months ended 31 March 2016 and the year ended 30 September 
2016. 
 
2. REVENUE AND LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION 
 
The results for the six months ended 31 March 2017 and 31 March 2016 are 
unaudited. The audited results for the year ended 30 September 2016 have also 
been shown. 
 
3. EARNINGS PER ORDINARY SHARE 
 
The earnings per share is based on a loss for the period of GBP288,000 (six 
months ended 31 March 2016 - a loss of GBP257,000), being the loss attributable 
to ordinary shareholders, and a weighted average of 135,304,536 ordinary shares 
(six months ended 31st March 2016 - 35,073,010 ordinary shares) The diluted 
loss per share is not shown as the Company was loss making during the period. 
 
4. COPIES OF THE INTERIM RESULTS 
 
Copies of the half-yearly results will be available from the Company's 
registered office 27-28 Eastcastle Street, London, W1W 8DH, and will be 
available from the Company's website www.gotechgroup-plc.com. 
 
                                   **ENDS** 
 
For further information, please visit www.gotechgroup-plc.com or contact: 
 
Gail Ganney               GoTech Group plc             Tel: [phone] 
                                                       659111 
 
Virginia Bull             Allenby Capital Limited      Tel: [phone] 
James Reeve                                            5656 
Liz Kirchner 
 
Duncan Vasey              Peterhouse Corporate Finance Tel: [phone] 
Lucy Williams                                          9797 
 
Lottie Brocklehurst       St Brides Partners           Tel: [phone] 
Isabel de Salis                                        1177 
 
 
 
END 
 

(END) Dow Jones Newswires

April 21, 2017 02:00 ET (06:00 GMT)