TIDMYOLO
RNS Number : 2675N
YOLO Leisure & Technology PLC
08 May 2018
YOLO Leisure and Technology plc
("YOLO" or the "Company")
Unaudited Interim Results for the six months ended 31 March
2018
Introduction and Key highlights
The Board is pleased to announce the Company's unaudited results
for the six month period ending 31 March 2018. The key highlights
during the period were:
-- As at 31 March 2018 YOLO's Net Asset Value equates to 9.9p
per ordinary share versus a share price of 4.75p as at 4 May
2018.
-- On 2 January 2018 the Company invested an additional
GBP50,000 into TVPlayer via a convertible loan note as part of a
GBP2m fundraise from existing investors for further growth and
progress.
-- Investee company Magic Media Works has secured funding of
GBP2m from existing shareholders and due to significant interest
from external parties in its new ROXI product, has extended the
current round to GBP2.5m.
-- On 28 March 2018 the Company restructured its share capital
by consolidating its existing ordinary shares into 1 new share for
10 old shares and then splitting the new shares into new 0.01p
ordinary shares and new 9.99p deferred shares.
For further details please see below
YOLO Leisure and Technology
plc
Simon Lee Robinson simon.robinson@yoloplc.com
Cairn Financial Advisers
LLP
Sandy Jamieson, Liam Murray Tel: +44 20 7213
0880
Peterhouse Corporate Finance
Limited (Sole broker)
Duncan Vasey / Lucy Williams Tel: + 44 20 7220
9797
Walbrook PR Ltd Tel: +44 20 7933
8787 or yolo@walbrookpr.com
Paul McManus Mob: +44 7980 541
893
Sam Allen Mob: +44 7884 664
686
YOLO LEISURE & TECHNOLOGY PLC
CHAIRMAN'S STATEMENT
FOR THE SIX MONTHSED 31 MARCH 2018
Introduction
I am pleased to report that the Company has had an active six
month period ending 31 March 2018.
YOLO, as an AIM Rule 15 investment company, has invested into
businesses at the forefront of innovation and breakthrough
technologies that are reshaping how consumers engage with media
content through technology. The exciting sectors and companies we
have invested into are; e-sports, OTT broadcast tv streaming, music
streaming and podcasting, all of which are enjoying significant
growth as they disrupt and transform their respective industries
and all of which have enormous international potential.
As an investment company YOLO continues to support and actively
work with each of our investee companies to maximise shareholder
value and build quality businesses. Our portfolio consists of two
listed and three private companies all of which operate in the
media technology sectors. Based on fair values at 31 March 2018,
our investments are showing a potential gross return on investment
of over 20%. We believe that there is still significant upside to
be delivered and we are working with each of the boards of our
investee companies to realise this potential.
Following the share capital restructuring, the Company's Net
Asset Value at 31 March 2018 equates to 9.9p per ordinary
share.
Market context and background to investment strategy
Each of the companies we have invested in are innovators that
are creating and capitalising on new user experiences which engage
and enable consumers to enjoy media content at their convenience
via a variety of platforms. Each of the businesses have slightly
different business models but all have a common goal to monetise
the media consumption and innovative technology.
Our investee companies have made significant investments in
their proprietary technology through in-house R&D and they
continue to grow as valuable standalone businesses. Their proven
disruptive technology and engaging entertainment platforms are now
being seen as potential acquisition targets.
As an investment business we are constantly striving to improve
and evaluate the best ways to generate returns for our
shareholders. Our focus is on building strong sustainable companies
from early stage entrepreneurial businesses. Our primary objectives
are to maximise value of our existing investments and capital
deployed, whilst in parallel identifying incremental growth
opportunities and prospects. We are actively working with the
boards of our investee companies to evaluate exit opportunities and
optimal ways to accelerate growth. We recognise our role is to
assist and advise them through these phases to maximise shareholder
return.
As early movers and innovators in their sectors, our investee
companies are continually seeking ways to maximise the monetary
value of their business models. The company valuations are based
around the valuation of the proprietary technology developed, the
number of active users of the product current and future potential
and the amount of revenue generated per engaged user.
How consumers spend their leisure time and disposable income is
a key theme for each of Yolo's investee companies and of equal
importance is how they monetise this engagement time. Each of them
has worked to capitalise on the shift to digital by developing
technology platforms and capability that engage consumers with
media content to create innovative and entertaining experiences
that consumers value.
Consumers are increasingly looking to enrich their lives through
entertainment experiences, aiming to make their everyday life more
enjoyable and memorable. Improved technology in the form of smart
TVs and the emergence of streaming services have encouraged
consumers to enjoy leisure in the comfort of their own home.
We believe that each of our investee companies are in a "hot"
space, with the ability and intent to scale internationally.
Indicative valuations reflect the number of current and potential
users multiplied by the likely lifetime value of the user or
multiples of revenue as appropriate.
Summary of investment portfolio
The Board has been selective in the transactions made and our
investment portfolio now consists of businesses with strong
technology and content themes. Each of the businesses are pioneers
and innovators in their sectors and are disrupting the space that
they are in, which is consistent with YOLO's investment
criteria.
TVPlayer:
Since being founded in 2014, TVPlayer has become one of the UK's
fastest growing complete pay-TV platforms. As an aggregator of
major free to air and pay TV channels in an over the top (OTT)
service, the company has established its presence across all of the
main consumer device technologies, including online, mobile,
connected TV, games consoles and other connected devices which
enable TV apps. The company, which operates a freemium TV model,
has surpassed 1.5 million monthly active users and has reached over
60,000 subscribers on its premium pay-TV service. This represents a
year-on-year growth rate of over 125%.
TV consumption and behaviour is rapidly changing. Connected
device adoption and increases in internet speeds are enabling new
ways to consume television as consumers no longer need to rely on
set top box technologies. The emergence of OTT content aggregators
provides consumers with more choice and flexibility than ever
before and traditional TV platforms are having to work hard to
retain subscribers as they adopt OTT services (cord cutting).
Subscription Video on demand (SVOD) and Advertising Video on Demand
(AVOD) are continuing to change the way viewers consume content and
broadcasters/ content providers monetise their offerings. TVPlayer
is well positioned to meet these changes in consumer trends.
TVPlayer's proprietary technology platform allows the company to
service millions of users at a significantly reduced cost to that
faced by new OTT entrants and traditional pay TV companies.
TVPlayer's technology and metadata enables it to get closer to the
consumer, providing a more targeted, immersive, cost efficient and
personalised offering.
TVPlayer, with its impressive credentials and momentum, is
attracting interest from a number of strategic media investors and
acquirers. TVPlayer delivered quarterly revenues of over GBP1.5m in
Q3 to February 2018. We believe that valuations in this space vary
between 6 and 10 times annual revenues for OTT platforms implying a
valuation of between GBP36m and GBP60m.
To further accelerate growth and strengthen its management team,
TVPlayer has appointed Scott Kewley (previously at Virgin Media)
and Nick James (previously at Talk Talk & Lovefilm) as Chief
Operating Officer and Chief Technology Officer respectively. Rob
Hodgkinson has moved into the Chief Financial Officer role and Adam
Smith, the company Founder, continues as Chief Executive
Officer.
Scott was formerly Director of Digital Entertainment at Virgin
Media and has latterly been leading a consumer-facing OTT platform
in the UK. James was previously Head of TV Architecture &
Innovation at TalkTalk, with prior experience at Lovefilm and Sky.
In their new remits, Scott and James will be tasked with
multiplying the TVPlayer premium subscriber base.
Yolo has a holding of 11,067 shares equating to 4.2% on a fully
diluted basis, A&E Networks is a major strategic investor with
a 24.9% holding, and Beringea LLP holds 10.9%.
Simplestream:
Simplestream is a leading provider of Software as a Service
(SaaS) based live linear and video on demand (Vod) broadcasting and
streaming solutions. Clients include; News Corporation (Ball Ball),
A&E Networks (Blaze), Sony Traceplay, QVC TV shopping, Box
Nation, Little Dot Studios and At The Races amongst others.
Simplestream's proprietary Media Manager cloud technology
platform provides live and on demand streaming solutions including;
Hybrid TV, VoD in a box incorporating functionality such as
personal video recording, TV Apps for mobile devices and desktop
and Internet Protocol Television (IPTV) for broadcasters,
publishers, telco, cable and SVoD platforms.
Simplestream has seen over 40% revenue growth year on year.
Simplestream now delivers services across Europe, the US, Africa
and the Far East with further international expansion planned for
2018. Simplestream is opening a new office in North America to
service its expanding international client base and has signed up
new partners in the last quarter including: British Forces TV and
radio services, History Hit TV and Little Dot Studios, a BAFTA and
Emmy award winning content producer and broadcaster.
YOLO holds 9,943 shares in Simplestream, which represents a
6.34% holding on a fully diluted basis.
Magic Media Works Ltd ("MMW"):
MMW is a music entertainment technology business. MMW's's
mission is to bring families together through shared music
entertainment experiences.
ROXI, which launched in the UK and US markets in late 2017, is
an easy way for friends and families to enjoy music together, with
a two minute set-up, tens of millions of songs pre-loaded, Voice
Search and many unique bonus entertainment features, all in one
competitively-priced music entertainment hub.
Offering Unlimited Music, Karaoke-style singing, global radio
access, an ambient Sound Machine and ROXI's unique music trivia
game, Name That Tune, ROXI is highly differentiated and popular
with its target market of older, family consumers. 93% of
purchasers say they would recommend it to friends and family and
68% of purchasers say they use it every day or several times a
week.
The Streaming Market is Still in its Infancy. Streaming has
changed the way many people access music, we recognise that there
is an untapped global audience with significant growth potential.
The majority of Spotify users are aged 34 or below. ROXI is
therefore targeting a different and complimentary audience and so
we believe has great potential of success.
MMW has global rights agreements with all the major labels;
Universal Music Group, Sony Music Group, Warner Music Group and
major independents including Merlin Music, providing customers with
one year's access to a premium music catalogue of over 29 million
music tracks ad-free.
MMW is focused on continually improving engagement with its
consumers through further enhancement and refinement of user
experience and facilitating integration in third party home
ecosystems to ensure that ever more people can access and enjoy the
product.
Following initial success with TV shopping channels and live
retail, the company is now focusing on broadening its consumer
marketing campaign with TV infomercial shows across mainstream TV
in the UK and the USA, in partnership with specialist infomercial
content providers, to enable a scaling of the business in these
markets, and elsewhere.
Henrik Holmark, previously the CFO of Pandora Jewellery, has
joined the MMW board as a non-executive Investor Director.
On completion of the recently announced GBP2.0 million
investment round, Yolo's holding in MMW will represent 1,646,682
Ordinary Shares, representing 18.6 percent of the issued share
capital of Magic. The Company has options over a further 95,000
ordinary shares in MMW.
GFinity Plc:
GFinity is an end-to-end eSports (also known as competitive
gaming) solution, founded in 2012. GFinity has quickly established
itself as one of the world's leading eSports companies, capable of
providing an end-to-end solution and with a strong reputation for
quality across publishers, players and eSports fans. It stages
elite tournaments for the top players in the world, producing
industry leading broadcasts and providing on-line competitions and
content to engage the eSports community.
GFinity has made significant progress this year, with the launch
of the Elite Series season two, a renewed partnership with Formula
One, the launch of the Elite Series in Australia, new broadcasting
partnerships with BT Sport, BBC 3 and Eleven Sports and the
acquisition of CEVO, an American based provider of technology and
services to the eSports market.
YOLO holds 400,000 shares in GFinity.
AudioBoom Plc:
AudioBoom is one of the world's leading spoken-word audio or
podcasting platforms for hosting, distributing and monetising
content that enables the creation, broadcast and syndication of
audio content across multiple networks and geographies. AudioBoom
works with its partners to monetise their audio via live in-reads,
the dynamic insertion of pre and post roll audio adverts and video
ads. The platform enables partners to deliver their content to
millions of listeners worldwide via embedded (in websites) players,
mobile applications, Facebook and Twitter integrations.
In February 2018 AudioBoom had 82.3m users, up by 40% on
February 2017 users.
On 13 February 2018 AudioBoom announced the proposed acquisition
of Triton Digital, and on 27 April 2018 announced it was still in
the process of trying to complete this acquisition.
Yolo holds 5,340,000 shares in AudioBoom.
Restructure of Share Capital
At the AGM held on 28 March 2018, shareholders approved the
resolution for a share consolidation and subdivision which resulted
in YOLO shareholders receiving one new ordinary share of 0.01p each
("New 0.01p Ordinary Share") and one new deferred share of 9.99p
each ("New Deferred Share") in YOLO in exchange for every ten
existing ordinary shares of 1p each ("Existing Ordinary Shares").
Following completion of the share capital reorganisation, the total
issued ordinary share capital of the Company is now 44,132,276 New
0.01p Ordinary Shares, each with voting rights.
The Board as well as continuing to evaluate and consider
investment opportunities in the technology, travel, leisure and
media sectors, is also evaluating the use and integration of
Artificial Intelligence, Blockchain and Cryptocurrency into its
chosen sectors and will only make investments in those areas which
the Board believes will create value for shareholders.
I would also like to thank our shareholders and advisers for
continuing to support the Board and our vision.
Simon Robinson
Chairman
8 May 2018
YOLO LEISURE & TECHNOLOGY PLC
INTERIM STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 31 MARCH 2018
Unaudited Unaudited
six months six months
ended ended
31 March 2018 31 March
2017
Notes GBP GBP
Other income 13,250 17,096
Unrealised (loss)/gain
on remeasurement to
fair value 3 (26,635) 178,121
Administrative expenses (150,186) (143,794)
(LOSS) / PROFIT FROM
OPERATIONS BEFORE
FINANCING ACTIVITIES (163,571) 51,423
Finance income 24 10,630
(LOSS) / PROFIT BEFORE
TAX (163,547) 62,053
-------------- -----------
Tax - -
(LOSS) / PROFIT FOR
THE PERIOD (163,547) 62,053
-------------- -----------
TOTAL COMPREHENSIVE
(EXPENSE) / INCOME
FOR THE PERIOD (163,547) 62,053
============== ===========
Profit / (Loss) before tax and total comprehensive income /
(expense) for the period are all attributable to the equity
shareholders of the parent.
Profit / (Loss) per
share
Basic (0.37)p 0.16p
======== ======
Diluted (0.37)p 0.14p
======== ======
Income and profit from operations for the current period all
derive from continuing operations.
YOLO LEISURE & TECHNOLOGY PLC
INTERIM STATEMENT OF FINANCIAL POSITION
FOR THE SIX MONTHSED 31 MARCH 2018
Unaudited Audited
31 March 30 September
2018 2017
Notes GBP GBP
ASSETS
Non-current assets
Investments 3 3,898,848 3,875,483
3,898,848 3,875,483
------------ -------------
Current assets
Trade and other receivables 70,400 62,980
Cash and cash equivalents 4 417,894 619,939
------------ -------------
488,294 682,919
------------ -------------
TOTAL ASSETS 4,387,142 4,558,402
============ =============
EQUITY AND LIABILITIES
Equity
Share capital 5 5,206,954 5,206,954
Share premium account 7,574,273 7,574,273
Retained earnings (8,430,749) (8,267,202)
Total equity attributable
to equity holders of the
parent 4,350,478 4,514,025
------------ -------------
Current liabilities
Trade and other payables 36,664 44,377
Total liabilities 36,664 44,377
------------ -------------
TOTAL EQUITY AND LIABILITIES 4,387,142 4,558,402
============ =============
YOLO LEISURE & TECHNOLOGY PLC
INTERIM STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 31 MARCH 2018
Share
Share Premium Retained
capital Account Earnings Total
GBP GBP GBP GBP
Audited as at
1 October 2016 2,582,954 7,617,273 (8,993,355) 1,206,872
Total comprehensive
income for the
period - - 62,053 62,053
Share issue 2,624,000 - - 2,624,000
Cost of new issue - (43,000) - (43,000)
Unaudited as at
31 March 2017 5,206,954 7,574,273 (8,931,302) 3,849,925
========== ========== ============ ==========
Audited as at
1 October 2017 5,206,954 7,574,273 (8,267,202) 4,514,025
Total comprehensive
expenses for the
period - - (163,547) (163,547)
Unaudited as at
31 March 2018 5,206,954 7,574,273 (8,430,749) 4,350,478
========== ========== ============ ==========
All equity is attributable to equity shareholders of the
parent.
Share premium
Represents amounts subscribed for share capital in excess of its
nominal value, net of directly attributable issue costs.
YOLO LEISURE & TECHNOLOGY PLC
INTERIM STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 31 MARCH 2018
Unaudited Unaudited
six months six months
ended ended
31 March 31 March
2018 2017
GBP GBP
Operating activities
(Loss) / Profit before
tax (163,571) 62,053
Loss / (Gain) on current
fair value adjustment 26,635 (178,121)
Changes in working capital:
Increase in trade and
other receivables (10,394) (16,543)
(Decrease) / Increase
in trade and other payables (4,739) 61,846
Net finance cost - 195
Net cash used in operating
activities (152,069) (70,570)
----------- ------------
Investing activities
Interest received 24 15
Investments (50,000) (1,708,955)
Net cash used in investing
activities (49,976) (1,708,940)
----------- ------------
Financing activities
Net proceeds from issue
of shares - 2,581,000
Interest paid - (210)
Net cash received from
financing activities - 2,580,790
----------- ------------
Taxation - -
Net (decrease) / increase
in cash and cash equivalents (202,045) 801,280
Cash and cash equivalents
at the start of the period 619,939 139,412
----------- ------------
Cash and cash equivalents
at the end of the period 417,894 940,692
=========== ============
YOLO LEISURE & TECHNOLOGY PLC
NOTES TO THE INTERIM FINANCIAL INFORMATION
FOR THE SIX MONTHSED 31 MARCH 2018
1 General information
YOLO Leisure & Technology Plc ('the Company') is an
investment company as defined under AIM Rule 15.
The Company is a publicly listed company on AIM, is incorporated
and domiciled in England and its registered office is 4 More London
Riverside, London, SE1 2AU.
This interim financial information was approved for issue on 8
May 2018.
2 Accounting policies
2.1 Basis of preparation
The interim financial information comprises the Statements of
Financial Position at 31 March 2018 and 30 September 2017 and the
Statements of Comprehensive Income, Changes in Equity and Cash
Flows for the periods ended 31 March 2018 and 31 March 2017 and the
related notes of YOLO Leisure & Technology Plc, (hereinafter
referred to as 'the interim financial information).
The interim financial information has been prepared in
accordance with IAS 34, 'Interim Financial Reporting' as adopted by
the European Union. In preparing this information, management have
used the accounting policies set out in the Company's annual
financial statements as at 30 September 2017.
This interim financial information does not constitute a set of
statutory accounts under the requirements of the Companies Act 2006
and is neither audited nor reviewed. The comparative figures for
the financial year ended 30 September 2017 are an extract from the
Company's 2017 financial statements, which have been reported on by
the Company's auditors and delivered to the Registrar of Companies.
The report of the auditors was unqualified.
This document (the Interim Statement 2018) will be published on
the company's website and will be publicly available from the
London Stock Exchange regulatory publications. The maintenance and
integrity of the YOLO Leisure & Technology Plc website is the
responsibility of the directors. Legislation in the UK governing
the preparation and dissemination of accounts may differ from
legislation in other jurisdictions.
2.2 Going concern
The company's activities, together with the factors likely to
affect its future development and performance, the financial
position of the company, its cashflow and liquidity position have
been considered by the directors and the Board is of the opinion
that there are sufficient funds available to continue as a going
concern for the foreseeable future. The Board is also planning to
raise additional funds to continue to carry out its investment
strategy as opportunities arise. Accordingly the Board consider it
appropriate to adopt the going concern basis in preparing these
condensed financial statements.
2.3 Investments
Financial assets and liabilities are fair valued using a
hierarchy that reflects the significance of the inputs used in
making the fair value assessment. The fair value hierarchy has the
following levels:
Level 1: quoted prices (unadjusted) in active markets for
identical assets or liabilities.
Level 2: inputs other than quoted prices for identical assets or
liabilities, either directly (i.e. as prices) or indirectly (i.e.
derived from prices).
Level 3: inputs for the assets or liabilities that are not based
on observable market data (unobservable inputs).
3 Investments
Level Level UnauditedTotal
1 3
GBP GBP GBP
Audited fair value
at 30 September
2017 264,855 3,610,628 3,875,483
Cost of acquisitions
during the period - 50,000 50,000
Unrealised loss
on remeasurement
to fair value (26,635) - (26,635)
Unaudited fair
value at 31 March
2018 238,220 3,660,628 3,898,848
=========== ============ ===============
Cash and cash
4 equivalents
For the purpose of the interim cash flow statement,
cash and cash equivalents are comprised of
the following:
Unaudited Unaudited
31 March 31 March
2018 2017
GBP GBP
Cash at bank and
in hand 417,894 940,692
========== ==========
5 Share capital Unaudited Unaudited
six months six months
ended ended
31 March 31 March
2018 2017
GBP GBP
Issued and
fully paid
As at 31 March 2017
Ordinary shares (441,322,758
shares of 1p each) 4,413,228 4,413,228
Deferred shares (8,819,181
shares of 9p each) 793,726 793,726
28 March 2018 shares cancelled
(441,322,758 shares of 1p -
each) (4,413,228)
28 March 2018 new Ordinary
share issued (44,132,276 -
shares of 0.01p each) 4,413
28 March 2018 new Deferred
share issued (44,132,276 -
shares of 9.99p each) 4,408,815
5,206,954 5,206,954
============ ============
Dividends paid
6 and proposed
Equity dividends
on ordinary shares:
No interim dividend was paid or is proposed
for the half year ended 31 March 2018.
Profit/(loss)
7 per share
The calculations of profit/(loss) per share are based on the
following results and number of shares. For the purpose of
comparatives it has been assumed that the share consolidation had
already occurred.
Unaudited Unaudited
six months six months
ended ended
31 March 31 March
2018 2017
GBP GBP
Profit / (Loss)
for the financial
period (163,547) 62,053
=========== ===========
Weighted average
number of shares
for diluted loss
per share 44,132,276 39,679,688
=========== ===========
Weighted average
number of shares
for basic loss per
share 44,132,276 38,797,770
=========== ===========
At 31 March 2018, the number of ordinary shares in issue was
44,132,276.
In accordance with the provisions of IAS 33 for
the periods ended 31 March 2018, 30 September
2017 and 31 March 2017, shares under option were
not regarded as dilutive in calculating earnings
per share.
Seasonality of
8 interim operations
YOLO Leisure & Technology Plc does not operate in a seasonal
or cyclical business environment.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR FDLLBVEFZBBE
(END) Dow Jones Newswires
May 08, 2018 02:01 ET (06:01 GMT)
Asimilar (LSE:ASLR)
Historical Stock Chart
From Apr 2024 to May 2024
Asimilar (LSE:ASLR)
Historical Stock Chart
From May 2023 to May 2024