TIDMBIDS
RNS Number : 1716V
Bidstack Group PLC
08 August 2022
30 Jun 2021
Certain information contained within this Announcement is deemed
by the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 ("MAR") as applied in
the United Kingdom. Upon publication of this Announcement, this
information is now considered to be in the public domain.
8 August 2022
Bidstack Group Plc
("Bidstack" or the "Company" or the "Group")
Interim Results for the six months ended 30 June 2022
Strong revenue and margin growth, increasingly diversified
offering, positive outlook in line with FY22 market
expectations
Bidstack Group Plc (AIM: BIDS), the in-game brand activation
platform, is pleased to announce its unaudited results for the six
months ended 30 June 2022.
Financial Update
-- Revenue of GBP2,046k (H1 2021: GBP820k)
-- Gross margin improvement to 39.9% (H1 2021: 34.5%)
-- Period end cash balance GBP3,672k (30 June 2021: GBP695k)
Post Period End Highlights
-- Received non-trading cash receipt of GBP1.3m in July relating
to a research and development tax credit for the year ended 31
December 2021;
-- Announced first enterprise software deal with a leading
Asia-Pacific mobile marketing technology company for a term of
three-years which diversifies revenue;
-- Expansion of the global network of media partners with UAE
based MMP World Wide who will license Bidstack's technology as a
buyer;
-- Roll-out of open-market place (OMP) in-game advertising
solutions to accelerate brand spend.
Operational Highlights
-- Appointment of David Reeves to the Board as Chairman
Designate to succeed Donald Stewart on 1 September 2022;
-- PubGuard, Bidstack's ad-quality platform, secured a minimum
two-year licence agreement with Azerion providing exclusive
representation in reselling PubGuard's brand safety technology
whilst also utilising the software across its group of
companies;
-- Inventory of games now 110 titles (H1 2021: 30) with over
100m monthly active users available to Bidstack's network of global
media partners; and
-- New ad-format "rewarded video" launched during H1 2022
growing the breadth of monetisation solutions available to
developers and publishers alongside "in-game" and "in-menu".
Outlook
-- Revenue from the Azerion media sales partnership is
anticipated to accelerate into H2 2022 in line with contractual
commitments;
-- New products scheduled to be launched in H2 2022 intended to
enable Bidstack's publishers and developers to maximise
monetisation alongside the addition of new measurement tools and
enhanced platform management including data and reporting;
-- Interactive Advertising Bureau (IAB) and Media Rating Council
(MRC) Measurement Guidelines now in public consultation to
establish robust standards. These standards are expected to
increase the confidence of media buyers to purchase in-game
advertising through open marketplace, which is expected to be a
significant catalyst for frictionless growth; and
-- Robust pipeline for further enterprise software sales as
Bidstack diversifies its business towards new opportunities in
technology licensing to publishers, developers, platforms and
rights holders beyond FY22.
James Draper, CEO of Bidstack said:
"As I mentioned in our trading update on 6 July 2022, the first
six months of FY22 has seen the Company put in place further
foundations for longer term growth, as our Group revenues begin to
accelerate.
"Our wider product offering and suite of tools, organic growth
and the commencement of our commercial relationship with Azerion
has created a 2.5x increase in first half revenue year-on-year to
over GBP2m. Given our full year revenues for 2021 of GBP2.6m, this
represents a significant acceleration of turnover. In addition, our
gross margin has also trended up year-on-year.
"Our two-year agreement with Azerion began in March and, after
an initial integration and on-boarding phase, is now progressing in
line with management's expectations. As previously mentioned,
Azerion is giving Bidstack's media segment and gaming advertising
network a greatly increased representation across markets new to
the Group.
"I am also pleased that our relationship with Azerion has
deepened with their confirmation as the exclusive reseller of our
PubGuard product over the next two years. This is a great
commercial start for our technology division.
"As we announced on 11 July, our technology division has signed
a three year commercial agreement with a leading Asia-Pacific
mobile marketing technology company which will white-label our
supply side platform to create their own in-game advertising
business. This is expected to create a passive, recurring revenue
stream for the Group going forward.
"Bidstack Group is proud to be a pioneer with our industry
bodies; the IAB and MRC. They are now releasing standardisation
guidelines for campaign measurement. This is an important
development, as a universally approved standard for measuring
campaign success will enable media planners to push more spend into
in-game advertising.
"In H2 22 we will continue exploring enterprise software sales.
Our vision has always been to create a platform that generates
recurring and automated revenues through our suite of tools,
designed to help our gaming publishers' customers monetise brand
activations. We have many exciting new products, adding to our
"always-on revenue" suite of tools for publishers that are expected
to be rolled out in Q3 22.
"We are all very aware of the uncertainty caused by the
challenging global economic climate. However, we remain confident
that the video game sector will remain strong and that demand for
monetisation through advertising-spend will continue to increase,
from game developers and publishers.
"I believe we remain well placed to benefit as our market
continues to mature and I look forward to providing further
updates."
Chairman's Statement
H1 2022 Trading
Bidstack's first six months of the year have been positive. The
Group's financial indicators, such as year-on-year revenue, gross
margin and cash are extremely encouraging. On the 1 March 2022, the
$30m two-year minimum revenue guarantee with Azerion commenced. The
onboarding of sales teams across key markets such as the UK,
Germany, France, Spain, Netherlands, Italy, Nordics, Portugal and
Belgium has commenced in-line with expectations and will accelerate
into H2 2022.
Bidstack has grown its publisher and developer network to over
110 titles with access to over 100m monthly active users as we
continue building our portfolio of titles providing significant
cross-selling opportunities across our breadth of ad-formats, which
now includes rewarded video in addition to in-game and in-menu. The
combination of brand awareness and performance ad-formats provides
the publishers and developers with a holistic monetisation solution
to generate sustainable revenue.
During the first half, Bidstack has also started to see success
with its enterprise sales efforts with the licensing of our
PubGuard technology to Azerion over two years. The Directors
believe this should be a positive mix-driver for gross margin as
these are technology-only contracts. The commercial pipeline for
further technology deals is strong across a diversified set of
customers and geographical footprint. The Directors believe that
these transactions will contribute meaningfully to revenues in
FY23.
Board Appointments
On the 17 June 2022, we announced the appointment of David
Reeves to Bidstack's Board as Chairman Designate. To ensure an
orderly handover before David assumes the role of Chairman on 1
September 2022, I will remain Chairman while David serves on the
Board as a Non-Executive Director. Following this, I will move to a
Non-Executive Director role and continue to serve on the Audit and
Remuneration Committees.
David has over 30 years' global experience in senior management
roles within multinational companies across the video games
industry. He launched Sony PlayStation in Germany, Switzerland
& Austria in 1995 and in 1999, he was appointed Executive Vice
President of Sony Computer Entertainment (Europe) and President and
CEO EMEA in 2003. In 2010, David was appointed as COO of Capcom
(Europe). David has his own consulting Company DRC Consulting Ltd,
is Co-Founder of E Fundamentals, a SaaS company providing
e-commerce analytics services and is Chairman of Comcarde Ltd, an
Edinburgh based fintech company.
David served as Senior Non-Executive Director and Chairman of
the Remuneration Committee for AIM-quoted Keywords Studios.
Keywords Studios is an international technical services provider to
the global video games industry, established in 1998. It provides
integrated art creation, marketing services, game development,
testing, localization audio and player support services across more
than 50 languages and 16 games platforms to a blue-chip client base
of over 950 clients across the globe. Following the completion of
nine years' service as a Non-Executive Director he retired from
this position on 20 May 2022.
Outlook & Future Prospects
The second half of the year has commenced strongly with the
announcement of Bidstack's first white-label contract with a
leading Asia-Pacific based mobile marketing technology company for
a term of three years. The company has contracted to utilise
Bidstack Technologies' supply side platform ("SSP") to create their
own in-game advertising business adding both advertisers and
publishers and developers, which is expected to create a passive,
recurring revenue stream for the Group going forward. This also
provides Bidstack with direct exposure to the Asia-Pacific market
which includes half of video gamers worldwide.
The Directors' believe that the roll-out of further Bidstack
products will also help additional revenue generation. These
include the launch of our open-market place (OMP) for in-game
advertising which is intended to accelerate brand spend. This is
supported also by the positive developments with the Interactive
Advertising Bureau (IAB) and Media Rating Council (MRC) Measurement
Guidelines which provides further confidence to media buyers.
The Board is pleased with Bidstack's progress in the first half
and expects that revenues for FY22 will be in line with market
expectations, primarily reflecting the increased commitments
arising under the Azerion contract for the second half.
The Board continues to believe that Bidstack is well
established, both in terms of product and revenue generation, as a
leading player for in-game brand activation. Bidstack continues to
focus on cash management, gross margins and operating expenses.
-S-
Contacts
Bidstack Group Plc
James Draper, CEO via Buchanan
SPARK Advisory Partners Limited (Nomad) +44 (0) 203 368
Mark Brady / Neil Baldwin / James Keeshan 3550
Stifel Nicolaus Europe Limited (Broker) +44 (0) 20 7710
Fred Walsh / Tom Marsh 7600
Buchanan Communications Limited
Chris Lane / Stephanie Whitmore / Kim
van Beeck +44 (0) 20 7466
bidstack@buchanan.uk.com 5000
Consolidated statement of comprehensive income
for the six months ended 30 June 2022
Note
Unaudited Unaudited Audited
6 months 6 months year
ended ended ended
30 Jun 2022 30 Jun 2021 31 Dec 2021
GBP GBP GBP
Revenue 2,045,986 820,136 2,623,413
Cost of sales (1,229,225) (537,309) (1,674,190)
------------- ------------ -------------
Gross profit 816,761 282,827 949,223
Administrative expenses (4,507,501) (3,915,874) (8,681,927)
Exceptional Items - - (222,555)
------------- ------------ -------------
Total Administrative Expenses (4,507,501) (3,915,874) (8,904,482)
Operating loss (3,690,740) (3,633,047) (7,955,259)
Finance income 96 60 180
Finance costs (1,442) (160) (3,392)
------------- ------------ -------------
Loss before taxation (3,692,086) (3,633,147) (7,958,471)
Taxation 938,184 744,756 1,661,027
------------- ------------ -------------
Loss for the period (2,753,902) (2,888,391) (6,297,444)
Other comprehensive income
Total other comprehensive (loss)/income (10,675) - 10,589
------------- ------------ -------------
Total comprehensive loss for
the period (2,764,577) (2,888,391) (6,286,855)
============= ============ =============
Loss per share - basic and diluted
(pence) 3 (0.30) (0.74) (1.21)
The above consolidated statement of profit and loss and other
comprehensive loss for the period relates to continuing operations
for the Group.
Consolidated statement of financial position
as at 30 June 2022
Note Unaudited Unaudited Audited
30 Jun 2022 30 Jun 2021 31 Dec 2021
ASSETS GBP GBP GBP
Non-current assets
Right of use asset 5,600 649 7,280
Intangible assets 233,162 264,357 248,760
Property, plant and
equipment 45,841 41,277 46,519
------------- ------------ -------------
Total non-current assets 284,603 306,283 302,559
============= ============ =============
Current assets
Trade and other receivables 4,284,584 1,229,387 2,752,036
Cash and cash equivalents 3,671,976 694,544 7,086,906
-------------
Total current assets 7,956,560 1,923,931 9,838,942
=============
Total assets 8,241,163 2,230,214 10,141,501
============= ============ =============
EQUITY AND LIABILITIES
Equity
Share capital 4 8,950,048 6,234,261 8,950,048
Share premium account 35,375,326 27,984,716 35,375,326
Share-based payment
reserve 2,328,400 1,497,826 1,589,965
Merger relief reserve 6,508,673 6,508,673 6,508,673
Reverse acquisition
reserve (23,320,632) (23,320,632) (23,320,632)
Warrant reserve 71,480 71,480 71,480
Exchange reserve (86) - 10,589
Accumulated losses (24,630,248) (18,467,293) (21,876,346)
-------------
Total equity 5,282,961 509,031 7,309,103
============= ============ =============
Non - Current liabilities
Lease liability 2,416 675 4,180
------------- ------------ -------------
Total non -current
liabilities 2,416 675 4,180
============= ============ =============
Current liabilities
Trade and other payables 2,952,597 1,720,508 2,824,920
Lease liability 3,189 - 3,298
------------- ------------
Total current liabilities 2,955,786 1,720,508 2,828,218
============= ============ =============
Total equity and liabilities 8,241,163 2,230,214 10,141,501
============= ============ =============
The interim financial report was approved by the board of
Directors on 8 August 22 and signed on its behalf by:
Donald Stewart
Chairman of Bidstack Group Plc
Consolidated statement of changes in equity
for the six months ended 30 June 2022
Share-based Merger Reverse Warrant
Share Share payment relief acquisition Exchange reserve Accumulated Total
capital premium reserve reserve reserve reserve losses equity
GBP GBP GBP GBP GBP GBP GBP GBP GBP
Balance as at
1 January
2022 8,950,048 35,375,326 1,589,965 6,508,673 (23,320,632) 10,589 71,480 (21,876,346) 7,309,103
Comprehensive
income for
the period
Loss and total
comprehensive
income for
the year - - - - - (10,675) - (2,753,902) (2,764,577)
--------- ---------- ----------- --------- -------------- -------- ------- ------------ -------------
Total
comprehensive
expense - - - - - (10,675) - (2,753,902) (2,764,577)
--------- ---------- ----------- --------- -------------- -------- ------- ------------ -------------
Transactions
with owners
Issue of - - - -
shares - - - - -
Costs of - - - -
raising equity - - - - -
Share-based
payments - - 738,435 - - - - - 738,435
--------- ---------- ----------- --------- -------------- -------- ------- ------------
Total
transaction
with
owners - - 738,435 - - - - - 738,435
Balance as at
30 June 2022 8,950,048 35,375,326 2,328,400 6,508,673 (23,320,632) (86) 71,480 (24,630,248) 5,282,961
========= ========== =========== ========= ============== ======== ======= ============ =============
Consolidated statement of changes in equity
for the six months ended 30 June 2021
Share-based Merger Reverse
Share Share payment relief acquisition Exchange Warrant Accumulated Total
capital premium reserve reserve reserve reserve reserve losses Equity
GBP GBP GBP GBP GBP GBP GBP GBP GBP
Balance as at
1 January
2021 6,234,261 27,984,716 1,282,556 6,508,673 (23,320,632) - 71,480 (15,578,902) 3,182,152
Comprehensive
income for
the period
Loss and total
comprehensive
income for
the year - - - - - - - (2,888,391) (2,888,391)
--------- ---------- ----------- --------- -------------- -------- ------- ------------ -----------
Total
comprehensive
expense - - - - - - - (2,888,391) (2,888,391)
--------- ---------- ----------- --------- -------------- -------- ------- ------------ -----------
Transactions
with owners
Issue of - - - -
shares - - - - -
Costs of - -
raising equity - - - - - - -
Share-based
payments - - 215,270 - - - - - 215,270
--------- ---------- ----------- --------- -------------- -------- ------- ------------ -----------
Total
transaction
with
owners - - 215,270 - - - - - 215,270
Balance as at
30 June 2021 6,234,261 27,984,716 1,497,826 6,508,673 (23,320,632) - 71,480 (18,467,293) 509,031
========= ========== =========== ========= ============== ======== ======= ============ ===========
Consolidated statement of changes in equity
for the year ended 31 December 2021
Share-based Merger Reverse
Share Share payment relief acquisition Exchange Warrant Accumulated Total
capital premium reserve reserve reserve reserve reserve losses equity
GBP GBP GBP GBP GBP GBP GBP GBP GBP
Balance as at
1 January
2021 6,234,261 27,984,716 1,282,556 6,508,673 (23,320,632) - 71,480 (15,578,902) 3,182,152
Comprehensive
income
for the period
Loss and total
comprehensive
income for
the year (6,297,444) (6,297,444)
--------- ---------- ----------- --------- -------------- -------- ------- ------------ -----------
Total
comprehensive
expense - - - - - - - (6,297,444) (6,297,444)
--------- ---------- ----------- --------- -------------- -------- ------- ------------ -----------
Transactions
with owners
Issue of
shares 2,715,787 8,147,363 - - - - - - 10,863,150
Costs of
raising
equity - (756,753) - - - - - - (756,753)
Share-based
payments - - 307,409 - - - - - 307,409
Total other
comprehensive
income - - - - - 10,589 - - 10,589
--------- ---------- ----------- --------- -------------- -------- ------- ------------ -----------
Total
transaction
with
owners 2,715,787 7,390,610 307,409 - - 10,589 - - 10,424,395
--------- ---------- ----------- --------- -------------- -------- ------- ------------ -----------
Balance as at
31 December
2021 8,950,048 35,375,326 1,589,965 6,508,673 (23,320,632) 10,589 71,480 (21,876,346) 7,309,103
========= ========== =========== ========= ============== ======== ======= ============ ===========
Consolidated statement of cash flows
6 months ended Year ended
6 months ended 30 Jun 2021 31 Dec
30 Jun 2022 2021
GBP GBP GBP
Cash flows from operating activities
Loss before taxation (2,753,902) (2,888,391) (7,958,471)
Adjustments for:
Amortisation - Intangibles 15,598 15,598 31,195
Amortisation - Right of use asset 1,680 6,928 10,377
Depreciation 13,140 9,442 24,160
Equity settled share-based payments 738,435 215,270 307,409
Doubtful debts expense - - (2,073)
Interest received (96) (60) (180)
Interest paid 1,442 160 3,392
Exchange differences on translation of
foreign operations (10,675) - 10,589
-------------- --------------
(1,994,378) (2,641,053) (7,573,602)
Changes in working capital
(Increase)/decrease in trade and other
receivables (1,532,550) 1,161,913 409,468
Increase/(decrease) in trade and other
payables 127,679 (143,231) 961,182
-------------- -------------- -----------
Cash used in operations (3,399,249) (1,622,371) (6,202,952)
Taxation Received - - 892,895
-------------- -------------- -----------
Net cash used in operations (3,399,249) (1,622,371) (5,310,057)
Cash flow from investing activities
Investment in intangible assets - - -
Investment in property, plant and equipment (12,462) (22,331) (42,291)
-------------- -------------- -----------
Net cash flow (used in)/ generated from
investing activities (12,462) (22,331) (42,291)
Cash flow from financing activities
Proceeds from issue of share capital - - 10,863,150
Cost of issue - - (756,753)
Principal movement on lease liabilities (1,872) (7,768) (11,045)
Interest received 96 60 180
Interest paid on lease liabilities (1,443) (160) (3,392)
-------------- --------------
Net cash generated from financing activities (3,219) (7,868) 10,092,140
(Decrease)/Increase in cash and cash
equivalents in the period (3,414,930) (1,652,570) 4,739,792
Cash and cash equivalents at beginning
of period 7,086,906 2,347,114 2,347,114
Cash and cash equivalents at the end
of the period 3,671,976 694,544 7,086,906
============== ============== ===========
for the period ended 30 June 2022
Notes to the consolidated interim financial report
1 Summary of significant accounting policies
Basis of preparation
The Company is a public limited company which is admitted to
trading on the AIM Market of the London Stock Exchange and is
incorporated and domiciled in the UK. The address of the registered
office is Plexal Here East, 14 East Bay Lane, London, United
Kingdom, E15 2GW. The registered number of the company is
04466195.
The consolidated interim financial report consolidates those of
the Company and its trading subsidiary, Bidstack Limited (together
the "Group"). The financial information presented in this interim
report have been prepared using accounting policies that are
expected to be applied in the preparation of the financial
statements for the year ending 31 December 2022.
These policies are in accordance with International Financial
Reporting Standards (IFRSs) and International Financial Reporting
Interpretation Committee (IFRIC) interpretations as endorsed by the
European Union ("IFRS-EU"), and those parts of the Companies Act
applicable to companies reporting under IFRS.
The interim results have been prepared on a going concern basis
which assumes that the Group will be able to continue trading for
the foreseeable future. Although an operating loss has been
reported for the reporting period and an operating loss is expected
to be incurred in the 12 months subsequent to the date of this
report, the Directors believe, having considered all available
information, including the cash resources currently available to
the Group and the Company's proven ability to raise further equity
funds from its supportive shareholder base, that the Group will
have sufficient funds to meet its expected committed and
contractual expenditure for the foreseeable future. Thus, the
Directors continue to adopt the going concern basis of accounting
in preparing the interim financial report for the period ended 30
June 2022.
2 Summary of significant accounting policies
The accounting policies applied by the Group in this
consolidated interim financial report are the same as those applied
by the Group in its consolidated financial statements as at and for
the year ended 31 December 2021.
3 Loss per share
Basic and diluted loss per share
The calculation of basic and diluted loss per share is based
upon the loss of GBP2,764,577 (2021: loss of GBP2,888,391) and the
weighted average number of ordinary shares in issue for the year of
931,531,573 (2021: 388,374,057).
The loss incurred by the Group means that the effect of any
outstanding warrants and options would be considered anti-dilutive
and is ignored for the purposes of the loss per share
calculation.
4 Share capital and reserves
Allotted, called up and fully Ordinary Share capital
paid 0.5p shares
No. GBP
At 1 January 2021 388,374,057 6,234,261
Exercised warrants - -
Exercised options - -
Issue of shares 543,157,516 2,715,787
Issue of consideration shares - -
As at 31 December 2021 931,531,573 8,950,048
-------------------------------- ------------ -------------
Issue of shares - -
As at 30 June 2022 931,531,573 8,950,048
================================ ============ =============
All ordinary shares are equally eligible to receive dividends
and the repayment of capital and represent equal votes at meetings
of shareholders.
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IR FDLLBLVLXBBX
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