RNS Number:6859R
Top Ten Holdings PLC
05 November 2003
TOP TEN HOLDINGS PLC
INTERIM STATEMENT
26 WEEKS ENDED 28 SEPTEMBER 2003
Top Ten Holdings plc ("Top Ten"), the bingo club and amusement arcade operator,
is pleased to announce its Unaudited Interim Results for the 26 weeks to 28
September 2003.
Main features:
* Turnover up 43% to #5.3 million
* Pre-tax profit increased 98% to #530,208
* Adjusted earnings per share 0.134p, up 81%
* Successful performance of 5 Welcome Clubs acquired in December 2002
* Recent acquisition of 8 further clubs and 4 amusement arcades since
period end
Commenting, Sir Aubrey Brocklebank, Chairman of Top Ten said:
"This has been a very satisfactory trading period and shows significant
improvement over the same period last year. The second half has started well and
we look forward with optimism, to delivering further growth and anticipate that
we will continue to achieve value for our shareholders."
CHAIRMAN'S STATEMENT
Introduction
On behalf of the board I am pleased to present the interim statement for 26
weeks ending 28th September 2003.
Results
I am pleased to report a significant improvement in profitability in the six
months ended 28 September 2003. The Group made a pre tax profit of #530,208
(2002: #267,690) which represents an improvement of 93 per cent. This was
achieved on turnover of #5,275,713 (2002: #3,689,776).
The five Welcome clubs acquired in December 2002 have contributed to these
results. We are particularly pleased that we have been able to increase their
profitability such that their profit contribution is now running substantially
higher than when we acquired them.
Acquisitions and Fund Raising
On 16th October we announced the acquisition of a further eight licensed bingo
clubs together with four amusement arcades at a cost of #5.8 million.
This acquisition was funded by a placing of 93,130,000 new shares, with
institutional and other investors, at 5p per share to raise approximately #4.65
million before expenses and by additional bank facilities.
In addition, because your Board felt that existing shareholders should have the
opportunity to invest on the same terms as the institutional investors, the
Company is offering 17,791,447 New Ordinary Shares at 5p per share by way of an
Open Offer to shareholders on the register on 10th October 2003 to raise up to a
maximum of #889,572 before expenses.
Information on the newly acquired clubs
Seven of these bingo clubs are freehold and one is leasehold. The freehold
premises comprise:
* The Majestic Bingo Hall Sherburn Road, Durham;
* The Palais Bingo Hall and amusement arcade, Elite Buildings, Front Street,
Stanley, Co. Durham;
* The Imperia Bingo Hall and amusement arcade, Victoria Square, Felling,
Gateshead;
* The Savoy Bingo Hall, amusement arcade, and other land and buildings, The
Green, Southwick, Sunderland;
* The Rex Bingo Club and amusement arcade, Silksworth Terrace, Silksworth,
Sunderland;
* The Eldon Bingo Club, Eldon Street, Darlington;
* The Palace Bingo Hall, North Road, Boldon Colliery, South Tyneside.
The Bowl Tombola Social Club, The Causeway, Billingham, County Cleveland is held
on a 10 year lease expiring on 21 December 2011 at a current rental of #45,000
per annum, subject to annual rent reviews. This club is currently closed and it
is your board's intention to refurbish the premises and reopen the club by mid
2004.
Prospects
The existing clubs are trading satisfactorily in line with the results of the
first half of the year.
Whilst the newly acquired clubs have only been under our management for a short
period of time we are excited by their prospects.
Under the previous management there had been little investment and we are
embarking upon a refurbishment programme, which together with the reopening of
the Billingham club we estimate will cost some #1.5 million.
I expect to be able to report at the full year that these clubs are making a
substantial contribution to your Company's earnings.
Sir Aubrey Brocklebank
Chairman
5 November 2003
For Further Information:
Top Ten Holdings plc 01727 850793
Sir Aubrey Brocklebank, Chairman
Alan Weston, Chief Executive
TOP TEN HOLDINGS PLC
INTERIM STATEMENT
26 WEEKS ENDED 28 SEPTEMBER 2003
Financial statements for the 26 weeks ending 28 September 2003
Consolidated Profit and Loss Account
26 weeks to 26 weeks to 52 weeks to
28 September 29 September 30 March
2003 2002 2003
Unaudited Unaudited Audited
GBP GBP GBP
Turnover 5,275,713 3,689,776 8,229,760
Cost of sales (680,968) (272,149) (461,853)
---------- ---------- ---------
Gross Profit 4,594,745 3,417,627 7,767,907
Distribution costs (3,580,018) (2,817,224) (6,466,235)
Administration costs (394,340) (319,326) (681,053)
Interest (90,181) (13,387) (41,463)
---------- ---------- ---------
Profit on Ordinary Activities 530,208 267,690 579,156
before Taxation
Taxation (166,420) (74,381) (176,937)
---------- ---------- ---------
Profit on Ordinary Activities After 363,788 193,309 402,219
Taxation
Dividend - - -
---------- ---------- ---------
Retained Profit # 363,788 # 193,309 # 402,219
---------- ---------- ---------
Earnings per ordinary share 0.136p 0.075p 0.15p
Diluted earnings per ordinary 0.134p 0.074p 0.15p
share
TOP TEN HOLDINGS PLC
INTERIM STATEMENT
26 WEEKS ENDED 28 SEPTEMBER 2003
Financial statements for the 26 weeks ending 28 September 2003
Summary Consolidated Balance Sheet
28 September 29 September 30 March
2003 2002 2003
Unaudited Unaudited Audited
GBP GBP GBP
Fixed assets
Intangible assets 7,459,366 4,557,075 7,459,366
Tangible assets 2,229,574 1,567,667 1,942,699
---------- ---------- ----------
9,688,940 6,124,742 9,402,065
---------- ---------- ----------
Current assets
Stocks 101,347 104,814 115,658
Debtors 805,592 350,301 521,797
Cash 307,568 615,434 309,099
---------- ---------- ----------
1,214,507 1,070,549 946,553
Creditors: amounts falling due (1,381,070) (889,547) (1,454,584)
within one year
---------- ---------- ----------
Net current (liabilities)/assets (166,563) 181,002 (508,031)
---------- ---------- ----------
Long term liabilities (2,312,266) (110,248) (2,047,711)
---------- ---------- ----------
# 7,210,111 # 6,195,496 # 6,846,323
---------- ---------- ----------
Share Capital 3,035,636 2,593,717 3,035,636
Reserves 4,174,475 3,601,779 3,810,687
---------- ---------- ----------
# 7,210,111 # 6,195,496 # 6,846,323
---------- ---------- ----------
TOP TEN HOLDINGS PLC
INTERIM STATEMENT
26 WEEKS ENDED 28 SEPTEMBER 2003
Financial statements for the 26 weeks ending 28 September 2003
Summary Consolidated Cash Flow Statement
26 weeks to 26 weeks to 52 weeks to
28 September 29 September 30 March
2003 2002 2003
Unaudited Unaudited Audited
GBP GBP GBP
Net cash inflow from operating 492,926 259,271 703,133
activities
Returns on investment and servicing
of finance
Interest received 1,403 2,425 13,675
Interest paid (90,456) (10,292) (43,791)
Interest element of finance lease (1,128) (5,520) (11,348)
payments ---------- ---------- ----------
Net cash outflow from returns on (90,181) (13,387) (41,464)
investments and servicing of ---------- ---------- ----------
finance
Taxation (85,312) (133,336) (220,212)
Capital expenditure and financial
investment
Payments to acquire tangible (428,410) (98,457) (383,377)
assets
Receipts from sales of tangible - 397,513 406,108
assets ---------- ---------- ----------
(428,410) 299,056 22,731
Acquisitions and disposals
Purchase of subsidiary - - (2,700,000)
undertaking
Legal costs in respect of - - (117,819)
acquisition of subsidiary
Cash at bank acquired with - - 39,342
subsidiary ---------- ---------- ----------
Net cash outflow for acquisitions - - (2,778,477)
---------- ---------- ----------
---------- ---------- ----------
Net cash (outflow)/inflow before (110,977) 411,604 (2,314,289)
management of liquid resources and ---------- ---------- ----------
financing
Financing
Issue of ordinary share capital - 25,000 25,000
Bank loans advanced 350,000 - 2,581,667
Bank loans repaid (223,552) - (109,182)
Capital element of finance leases (17,001) - (52,928)
paid ---------- ---------- ----------
Net cash inflow from financing 109,447 25,000 2,444,557
---------- ---------- ----------
---------- ---------- ----------
(Decrease)/Increase in cash (1,530) 436,604 130,268
---------- ---------- ----------
TOP TEN HOLDINGS PLC
INTERIM STATEMENT
26 WEEKS ENDED 28 SEPTEMBER 2003
Financial statements for the 26 weeks ending 28 September 2003
Notes:-
1. Publication of non-statutory accounts
The financial information contained in this interim statement does not
constitute accounts as defined by section 240 of the Companies Act 1985.The
financial information for the full preceding year is based on the statutory
accounts for the financial year ended 30 March 2003. Those accounts, upon
which the auditors issued an unqualified opinion, have been delivered to the
Registrar of Companies.
2. Basis of preparation of interim financial information
The accounting policies used in the interim statement are consistent with
those used in the financial statements for the 52 weeks ended 30 March 2003.
3. The interim statement will be sent to shareholders. Copies may be obtained
from the Company Secretary, Top Ten Holdings PLC, Unit 8, Verulam Industrial
Estate, 224 London Road, St Albans, Hertfordshire AL1 1JF
4. The board is not declaring an interim dividend (2002: nil)
5. The earnings per share is calculated by reference to the results and the
weighted average of 266,871,700 shares in issue during the period (2002:
257,258,440). The number of shares in issue at 28 September 2003 was
266,871,700. 6,445,000 potential ordinary shares have been treated as dilutive.
6. There are no recognised gains and losses other than those passing through
the profit and loss account.
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