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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Veltyco Group Plc | LSE:VLTY | London | Ordinary Share | IM00BYT32K14 | ORD NPV |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 8.40 | 8.00 | 8.80 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMVLTY
RNS Number : 0381O
Veltyco Group PLC
30 September 2019
30 September 2019
VELTYCO GROUP PLC
("Veltyco" or "the Group" or "the Company")
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHSED 30 JUNE 2019
Veltyco Group plc (AIM:VLTY), the online marketing and operating company for the gaming industry, announces its unaudited interim results for the six months ended 30 June 2019.
Financial overview
-- Revenues for continuing businesses decreased slightly to EUR1.8 million (H1 2018: EUR2.1 million) due to some large customer wins in May and June 2019
-- Net loss after tax amounted to EUR1.0 million (H1 2018: profit of EUR3.3 million) -- Completed raising of EUR1.355 million during the period to provide working capital - Raised a further EUR300k in September 2019 pursuant to a convertible loan
Operational overview
-- Paul Duffen joined the Board as Non-executive Chairman in January 2019, before being appointed Executive Chairman in March 2019
-- Streamlined operational structure to match the revised business model, which is now focused on its sportsbook and casino operations through Bet90 and marketing activities for the Betsafe brand in Germany
Commenting on the results, Paul Duffen, Executive Chairman, said: "2019 has been a very challenging period for the Group, with a focus on operational restructuring following termination of non-cash generating activities in the online financial trading vertical in the second half of 2018. We have made good progress and will continue to focus on expanding the operations of Bet90 and Betsafe."
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.
For further information please contact:
Veltyco Group Plc +44 (0)1624 605 764 Paul Duffen, Chairman Marcel Noordeloos, Chief Financial Officer Strand Hanson Limited (Nominated Adviser) +44 (0)20 7409 3494 James Harris / Richard Tulloch / James Dance Whitman Howard Ltd (Broker) +44 (0)20 7659 1234 Nick Lovering / Christopher Furness IFC Advisory (Financial PR & IR) +44 (0)20 3934 6630 Graham Herring / Tim Metcalfe / Zach Cohen
About Veltyco
Veltyco is a group of companies focused on the operation of its own online Sportsbook and Casino product as well as marketing activities for other online gaming companies.
Website: www.veltyco.com
CHAIRMAN'S STATEMENT
I hereby present the unaudited interim results for the six months ended 30 June 2019, which consolidate the results of Veltyco Group plc ("Veltyco" or "the Company") and its subsidiaries ("the Group").
Business
As communicated in our accounts for the year ended 31 December 2018, the Group is now focused on its sportsbook and casino operations in which the Group undertakes marketing activities for the Betsafe brand in Germany and operates our own Bet90 sportsbook and casino business, in which we have a 51% interest. This follows the Company's decision to cease all of the Group's marketing activities in the online financial trading and lottery verticals towards the end of 2018, which resulted in the full impairment of the Group's outstanding receivable balance of EUR10.7 million in the 2018 accounts in respect of such activities.
I was appointed as Non-executive Chairman on 30 January 2019, following Gilles Ohana decision to step down from the Board. On 7 March 2019, I assumed the role of Executive Chairman.
Following these changes, the Company's Board and management team now consists of Paul Duffen (Executive Chairman), Rainer Lauffs (Executive Director and COO), Marcel Noordeloos (Executive Director and CFO) and Mark Rosman (Non-Executive Director). The composition of the Board will continue to be reviewed as the business develops.
Financial review and outlook
Revenue for the first six months of 2019 amounted to EUR1.8 million. Although the reported revenue for H1 2018 amounted to EUR8.9 million, the H1 2018 revenue for the continuing businesses amounted to EUR2.1 million. This was a small decrease due to a number of large winners, which did not occur in 2018, across the Group's sportsbook and casino activities, which significantly impacted the revenue and the net result for the period.
As a result of the refocusing of the Group on its sportsbook and casino operations, the Directors sought to restructure the Group's operating costs to match current operations during the first half year of 2019 and these activities are ongoing. This has included the Group now taking in-house the operations for its service centre, previously outsourced to a third party. As a result, the Group now has a fully dedicated in-house team focused on the Group's Bet90 operations and the provision of customer service and player retention activities. This affords the Group a more efficient resource to focus on growing the Bet90 activities. Despite these measures, the Group reported a loss for the first six months of 2019 of EUR1.0 million.
During the period the Company completed a number of fundraises to provide additional working capital, raising EUR555,500 (GBP500,000) via an issue of new ordinary shares in January 2019, a loan from certain Directors amounting to EUR500,000 in April 2019 and EUR300,000 through the issue of new ordinary shares in May 2019. Following the period end, the Company raised a further EUR300,000 in September 2019 through the issue of a three year unsecured convertible loan, with a 10% coupon, with an existing investor.
Whilst trading since the end of June 2019 has been in line with the Board's expectations, as set out in its 2018 Accounts, the Group continues to be reliant on being able to manage its creditors, which continue to be meaningfully in excess of the Group's current cash resources. Whilst the Group has sought to reduced its operating costs to match its current operations, including accruing Directors' salaries until further funding is secured, the Group has continued to be loss making on a monthly basis, though the Directors expect this to improve going forward. The Directors continue to manage the Group's cash resources carefully, and whilst they believe that the Group will be able to continue to manage its creditors, should trading not be in line with expectations going forward and/or the Group is not able to manage its creditors, the Group's ability to meet such liabilities may be impacted. Accordingly, the Directors continue to explore further appropriate sources of capital.
Paul J. Duffen
Executive Chairman
27 September 2019
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Hot Features
Premium
Unaudited Unaudited Audited
Period ended Period ended Year ended
30 June 30 June 31 December
2019 2018 2018
Note EUR EUR EUR
Continuing operations
Revenues 1,808,222 2,103,342 4,686,923
Cost of Sales (982,570) (656,921) (1,337,518)
------------- ----------------- --------------
Gross profit 825,652 1,446,421 3,349,405
Salary expense (576,822) (491,197) (1,222,887)
Marketing and selling expense (575,073) (1,329,744) (2,945,609)
General administrative expense (704,734) (912,926) (1,497,148)
Depreciation, amortisation and impairment
expense (48,327) (60,414) (128,850)
------------- ----------------- --------------
Total administrative expenses (1,904,956) (2,794,281) (5,794,494)
------------- ----------------- --------------
Operating loss (1,079,304) (1,347,860) (2,445,089)
Financial (expense)/income (1,606) 25,988 38,851
(Loss) before tax (1,080,910) (1,321,872) (2,406,238)
Taxation 93,735 (83,767) (52,933)
(Loss) for the period from continuing
operations (987,175) (1,405,639) (2,459,171)
------------- ----------------- --------------
Discontinued operations
Profit/(loss) for the period from
discontinued operations 3 - 4,659,065 (14,244,131)
Profit/(loss) for the period (987,175) 3,253,426 (16,703,302)
------------- ----------------- --------------
Attributable to:
Equity holders of the Company (891,292) 4,021,473 (15,177,112)
Non-controlling interests (95,883) (768,047) (1,526,190)
(987,175) 3,253,426 (16,703,302)
------------- ----------------- --------------
(Loss)/earnings per share attributable to equity
holders of the Company
Continuing operations
- Basic (in EUR) 2 (0.0113) (0.0085) (0.0125)
- Diluted (in EUR) 2 (0.0113) (0.0085) (0.0125) Continuing and discontinued operations - Basic (in EUR) 2 (0.0113) 0.0538 (0.2029) - Diluted (in EUR) 2 (0.0113) 0.0538 (0.2029)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
30 June 30 June 31 December
2019 2018 2018
Note EUR EUR EUR
Non-current assets
Goodwill 1,410,931 1,743,485 1,410,931
Other intangible assets 5 1,384,217 7,785,567 1,431,925
Investments - 25,000 -
Property, plant and equipment 619 1,800 1,238
Total non-current assets 2,795,767 9,555,852 2,844,094
------------- ----------------------- ---------------------------
Current assets
Trade and other receivables 6 921,613 12,568,743 854,215
Cash and cash equivalents 189,975 1,019,231 1,031,071
Total current assets 1,111,588 13,587,974 1,885,286
------------- ----------------------- ---------------------------
Total assets 3,907,355 23,143,826 4,729,380
------------- ----------------------- ---------------------------
Equity and liabilities
Share capital - - -
Additional paid-in capital 14,644,702 13,736,202 14,344,702
Reverse asset acquisition reserve (6,046,908) (6,046,908) (6,046,908)
Retained earnings (6,110,582) 14,071,308 (5,262,376)
Equity attributable to owners
of the parent 2,487,212 21,760,602 3,035,418
------------- ----------------------- ---------------------------
Non-controlling interests (1,507,461) (585,080) (1,411,578)
Total shareholders' equity 979,751 21,175,522 1,623,840
------------- ----------------------- ---------------------------
Non-current liabilities
Borrowings 528,230 27,480 27,858
Total non-current liabilities 528,230 27,480 27,858
------------- ----------------------- ---------------------------
Current liabilities
Trade and other payables 2,399,374 1,940,824 3,077,682
Total current liabilities 2,399,374 1,940,824 3,077,682
------------- ----------------------- ---------------------------
Total equity and liabilities 3,907,355 23,143,826 4,729,380
------------- ----------------------- ---------------------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Other
reserves
-
Reverse
Additional asset
Share paid in acquisition Retained Non-controlling Total
capital capital reserve earnings Total interest Equity
EUR EUR EUR EUR EUR EUR EUR
Balance as
at 1
January
2018 - 13,665,233 (6,046,908) 9,948,904 17,567,229 182,967 17,750,196
---------- ------------ ------------- -------------- -------------- ---------------- --------------
Profit for
the
financial
period - - - 4,021,473 4,021,473 (768,047) 3,253,426
Share based
payments - - - 100,931 100,931 - 100,931
Issue of
share
capital - 70,969 - - 70,969 - 70,969
Balance as
at 30 June
2018 - 13,736,202 (6,046,908) 14,071,308 21,760,602 (585,080) 21,175,522
---------- ------------ ------------- -------------- -------------- ---------------- --------------
Balance as
at 1
January
2018 - 13,665,233 (6,046,908) 9,948,904 17,567,229 182,967 17,750,196
---------- ------------ ------------- -------------- -------------- ---------------- --------------
(Loss) for
the
financial
period - - (15,177,112) (15,177,112) (1,526,190) (16,703,302)
Dividend
paid - - (210,912) (210,912) (68,355) (279,267)
Share based
payment - - 176,744 176,744 - 176,744
Shares to
be issued - 555,500 - - 555,500 - 555,500
Issue of
share
capital - 123,969 - - 123,969 - 123,969
Balance as
at 31
December
2018 - 14,344,702 (6,046,908) (5,262,376) 3,035,418 (1,411,578) 1,623,840
---------- ------------ ------------- -------------- -------------- ---------------- --------------
(Loss) for
the
financial
period - - - (891,292) (891,292) (95,883) (987,175)
Share based
payment - - - 43,086 43,086 - 43,086
Issue of
share
capital - 300,000 - - 300,000 - 300,000
Balance as
at 30 June
2019 - 14,644,702 (6,046,908) (6,110,582) 2,487,212 (1,507,461) 979,751
---------- ------------ ------------- -------------- -------------- ---------------- --------------
CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
30 June 30 June 31 December
2019 2018 2018
EUR EUR EUR
note
Cash flows from
operating activities
Operating
(loss)/profit (1,079,304) 3,711,205 (17,297,953)
Adjustments for:
Share based payments 43,086 100,929 176,744
Depreciation 619 730 1,292
Amortisation of
intangibles 47,706 199,780 403,222
Impairment of
intangibles - - 6,482,752
Bad debt impairment - - 10,737,715
--------------------------------- ------------------------ ------------------------
Cash flow from
operations before
working capital
changes (987,893) 4,012,644 503,772
(Increase)/decrease in
trade and
other receivables (67,398) (4,598,547) (1,058,697)
(Decrease)/increase in
trade and
other payables (585,805) 859,242 533,580
--------------------------------- ------------------------ ------------------------
Cash flow from
operations (1,641,096) 273,339 (21,345)
Tax (paid)/received - (51,257) (86,823)
Cash flow from
operating activities 4 (1,641,096) 222,082 (108,168)
--------------------------------- ------------------------ ------------------------
Cash flow from
investing activities
Interest received - 25,988 38,851
Net cash
inflow/(outflow) from
investing
activities - 25,988 38,851
--------------------------------- ------------------------ ------------------------
Cash flow from
financing activities
Proceeds of issue of
new shares 300,000 70,969 679,469
Dividends paid - - (279,273)
Loans received 500,000 - -
Net cash inflow from
financing activities 800,000 70,969 400,196
--------------------------------- ------------------------ ------------------------
Net (decrease)/
increase in cash
and cash equivalents (841,096) 319,039 330,879
Cash and cash
equivalents at start
of period 1,031,071 700,192 700,192
--------------------------------- ------------------------ ------------------------
Cash and cash
equivalents at end
of period 189,975 1,019,231 1,031,071
--------------------------------- ------------------------ ------------------------
NOTES TO THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHSED 30 JUNE 2019
1. Basis of preparation
The interim consolidated financial statements incorporate the results of Veltyco Group plc (the "Company") and entities controlled by the Company (its subsidiaries) (collectively the "Group").
The interim consolidated financial statements are unaudited, do not constitute statutory accounts and were approved by the Board of Directors on 27 September 2019. The auditor's report on the year ended 31 December 2018 financial statements was unqualified, though it made reference to a material uncertainty in relation to going concern. The year ended 31 December 2018 Annual Report and financial statements is available on the Company's website.
The preparation of unaudited interim consolidated financial statements 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 expense. Actual results may differ from these estimates.
In preparing the unaudited interim consolidated financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 31 December 2018.
The unaudited interim financial information in this report has been prepared using accounting policies consistent with IFRS as adopted by the European Union. IFRS is subject to amendment and interpretation by the International Accounting Standards Board (IASB) and the IFRS Interpretations Committee and there is an ongoing process of review and endorsement by the European Commission. These policies are consistent with those to be adopted in the Group's consolidated financial statements for the year ended 31 December 2018. The accounting policies applied by the Group in this interim report are the same as those applied by the Group in the consolidated financial statements for the year ended 31 December 2018, with the exception of the adoption of IFRS 16. The adoption of this standard has not had a material effect on the accounting policies of the Group.
The principal risks and uncertainties of the Group have not changed since the last annual financial statements for the year ended 31 December 2018, where a detailed explanation of such risks and uncertainties can be found.
2. Earnings per share
The calculation of earnings per share is based on the following earnings and number of shares.
6 months 6 months Year ended
ended ended 31 December
30 June 2019 30 June 2018
2018
EUR EUR EUR
Earnings
Earnings for the purpose of
basic and diluted earnings per
shares being net profit attributable
to equity shareholders
- Continuing operations (891,292) (1,405,639) (2,459,171)
- Discontinued operations - 4,659,065 (14,244,131)
- Continuing and discontinued
operations (891,292) 3,253,426 (16,703,302)
-------------- ------------- -------------
Number of shares
Weighted average number of ordinary
shares for the purposes of basic
earnings per share 78,567,270 74,689,492 74,819,180
Weighted average number of dilutive - 5,517,844 -
share options
-------------- ------------- -------------
Weighted average number of ordinary
shares for the purposes of diluted
earnings per share 78,567,270 80,207,336 74,819,180
-------------- ------------- -------------
Earnings / (loss)per share from discontinued
operations
Basic earnings / (loss per share
(in EUR ) - 0.0623 (0.1904)
Diluted earnings / (loss per
share (in EUR ) - 0.0581 (0.1904)
-------------- ------------- -------------
The calculation of diluted earnings per share assumes conversion of all potentially dilutive ordinary shares, all of which arise from share options and/or warrants. A calculation is performed to determine the number of share options that are potentially dilutive based on the number of shares that could have been acquired at fair value, considering the monetary value of the subscription rights attached to outstanding share options.
3. Discontinued operations
During the second half of 2018, the Group terminated its marketing agreements related to the online financial trading and the lottery verticals. The Group has not recorded any further revenues after July 2018 and used the months after the termination to restructure the operational structure. The Group now believe the online financial trading and lottery verticals to be discontinued.
The results of these discontinued activities were as follows:
6 months 6 months Year ended
ended ended 31 December
30 June 2019 30 June 2018
2018
EUR EUR EUR
--------------- ------------ -------------
Revenue - 6,780,282 6,947,250
Administrative expenses - (1,721,302) (21,800,114)
---------------- ------------ -------------
Profit/(loss) from operations - 5,058,980 (14,852,864)
Profit/(loss) on disposal of - - -
discontinued operations
--------------- ------------ -------------
Profit/(loss) before tax - 5,058,980 (14,852,864)
Tax charge - (399,915) 608,733
Profit/(loss) after tax - 4,659,065 (14,244,131)
---------------- ------------ -------------
4. Cash generated from/(used in) continuing operations
6 months 6 months Year ended
ended ended 31 December
30 June 2019 30 June 2018
2018
EUR EUR EUR
-------------- -------------- --------------
Operating profit/(loss) (1,079,304) (1,347,860) (2,445,089)
Share based payments 43,086 100,929 176,744
Depreciation and amortisation
charge 48,325 60,414 128,850
(Increase)/decrease in receivables (67,398) (420,282) (521,596)
Increase/(decrease) in payables (585,805) (581,928) 934,826
-------------- -------------- --------------
Cash generated from/(used in)
continuing operations (1,641,096) (2,188,727) (1,726,265)
Cash generated from/(used in)
discontinued operations - 2,462,066 1,704,920
Tax paid - (51,257) (86,823)
-------------- -------------- --------------
(1,641,096) 222,082 (108,168)
-------------- -------------- --------------
5. Impairment of intangible fixed assets
During the year ended 31 December 2018, the Group recorded an impairment charge on the Intangible assets related to the online financial trading and lottery verticals, amounting to EUR6,482,752.
6. Trade and other receivables
During the year ended 31 December 2018, the Group recorded an impairment charge for potential recoverability problems on the receivables, amounting to EUR10,712,715. A provision for impairment of trade receivables is established using an expected loss model. Expected loss is calculated from a provision matrix based on the expected lifetime default rates and estimates of loss on default.
7. Significant events during the reporting period
On 30 January 2019, the Company announced that it had raised GBP500,000 by issuing 3,333,333 new ordinary shares to certain existing investors, at a price of GBP0.15 (15p) per share. Furthermore, the Company announced on the same day that Paul Duffen joined the Board as Non-Executive Chairman. Gilles Ohana, stepped down from the Board on the same day.
On 15 February 2019, the Company announced that it had granted options over, in aggregate, 2,420,000 ordinary shares to the Directors and certain employees of the Company. The new options have an exercise price of 15p (GBP0.15) per share and vest in accordance with the terms of Company's Long Term Incentive Plan. On the same day, a total of 600,000 options granted to Directors on 5 July 2017 were cancelled. In addition, 109,846 existing warrants that were granted by the Company on 5 October 2017, have had the terms amended, such that they will now be exercisable at a price of 15p (GBP0.15) per share.
On 7 March 2019, the Company announced that Paul Duffen was appointed as Executive Chairman.
On 1 April 2019, the Group announced that it had entered into separate loan agreements with three of its Directors, being Paul Duffen, Marcel Noordeloos and Mark Rosman, pursuant to which each Director provide a loan of EUR166,667 to the Company, totalling EUR500,000.
On 30 May 2019, the Company announced that it had raised EUR300,000 from an existing investor by issuing 4,000,000 new ordinary shares, at a price of 6.6p (GBP0.066).
8. Subsequent events
Fundraise
On 16 September 2019, the Company announced that it had raised EUR300,000 through the issue of a three year unsecured convertible loan, with a 10% coupon, to an existing investor.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
IR SELFAWFUSELU
(END) Dow Jones Newswires
September 30, 2019 02:01 ET (06:01 GMT)
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