TIDMBOTB
RNS Number : 5153L
Best of the Best PLC
12 January 2016
Best of the Best plc
("Best of the Best", "the Company" or "the Group")
Interim results for the six months ended 31 October 2015
Best of the Best plc runs competitions to win luxury prizes both
online and at retail locations
Key Highlights
-- Revenue up 30.0% to GBP4.98 million (2014: GBP3.83 million)
-- Profit before tax increased by 10.9% to GBP0.48 million (2014: GBP0.43 million)
-- Online revenues increased to GBP3.26 million (2014: GBP1.73
million) - representing 66.5% of total revenue
-- Significant investment in digital marketing and commencement of TV advertising
-- Net assets of GBP2.79 million, underpinned by cash balances
of GBP2.19 million (2014: GBP2.43 million)
-- Company rebranded from Best of the Best to BOTB
-- Weekly car competitions continue to drive sales
William Hindmarch, Chief Executive, said:
"I am pleased to announce a solid set of interim results with
increased revenues and profits. The business has traded well during
the period and the growing emphasis of online sales has been
encouraging.
During the period we have significantly grown our online
marketing investment. We continue to test multiple marketing
channels to recruit online players to help us to scale the
business. It is our intention to further increase our marketing
investment for the remainder of the financial year.
Our weekly car competition (previously twice a month) with a
guaranteed winner, continues to be well received by existing
customers as well as aiding the acquisition and conversion of new
customers, both at airports and online.
The business is well placed for future growth and we look
forward to updating shareholders on progress in due course."
Enquiries:
Best of the Best William Hindmarch, T: 020 7371
plc Chief Executive 8866
Rupert Garton, Commercial
Director
KTZ Communications Katie Tzouliadis T: 020 3178
6378
Panmure Gordon (UK) Mark Taylor T: 020 7886
Limited 2500
(Nominated Adviser)
Please visit www.botb.com for further information
Chief Executive's Statement
I am pleased to announce a solid set of interim results with
increased revenues and profits. The business has traded well during
the period and the growing emphasis of online sales has been
encouraging.
During the period we have significantly grown our online
marketing investment. We continue to test multiple marketing
channels to recruit online players to help us to scale the
business. It is our intention to further increase our marketing
investment for the remainder of the financial year.
Results
Revenue for the six months ended 31 October 2015 increased by
30.0 per cent to GBP4.98 million (2014: GBP3.83 million) and profit
before tax rose to GBP0.48 million (2014: GBP0.43 million). Our
weekly car competitions (previously twice a month), continue to be
well received by existing customers as well as aiding the
acquisition and conversion of new customers, both at airports and
online. During the period, we presented our winners with 26 cars
compared to 12 in the comparable period, and whilst adding
significantly to our costs, it reinforced our customers' enthusiasm
for the weekly format.
The Company generated GBP0.53 million of operating cash flow.
Net assets at 31 October 2015 stood at GBP2.79 million (2014: 3.33
million) and principally comprise cash of GBP2.19 million, our
stock of cars on display which are held at a net realisable value
of GBP0.40 million, and our 969 year leasehold office properties
valued at GBP0.95 million.
At the period end cash balances stood at GBP2.19 million (2014:
GBP2.43 million). As previously reported a 14.5 pence special
dividend amounting to approximately GBP1.32 million, was paid to
shareholders on 19 December 2014. Current cash balances stand at
approximately GBP2.5 million.
We are pleased to report that an overpayment of VAT in prior
years has meant that the company will shortly receive a credit from
HMRC. The impact of this amendment has been a refund, net of fees
and corporation tax of circa GBP0.34 million which has been
adjusted through retained earning as at 1(st) May 2015. In
addition, the accounts for the prior interim period ending 31
October 2014 and the year ending 30 April 2015 have been restated
to reflect the refund.
Furthermore, and as previously reported, following a VAT
decision at the First-tier Tribunal concerning a company with
similar activities in our sector, the Company has submitted a
protective claim to recover additional overpaid VAT. At present
this VAT litigation has not been concluded. It is therefore not
certain that the Company will receive any repayment from HM Revenue
& Customs, but we will update shareholders as this matter
progresses.
Dividend
A dividend in respect of the full year ended 30 April 2015 of
1.2 pence per share was paid to shareholders on 16 October 2015.
The Board is not recommending the payment of an interim dividend
(2014: nil); however, as in prior years, the Directors expect to
propose a final dividend for the financial year ending 30 April
2016, subject to the Company's trading performance, and to maintain
a progressive dividend policy.
New Player Acquisition
The Company has a multi channel approach to acquiring new
players. One of the key channels for this is our airport and
shopping centre locations. These locations build strong brand
awareness as well as providing significant opportunities for player
acquisition.
The Company is currently operating from 7 airport sites and 1
shopping centre site. Our airport locations are at Gatwick North,
Gatwick South, Birmingham, Manchester Terminal 1, Edinburgh,
Stansted, and Dublin's Terminal 2. We also operate from Westfield's
Shepherd's Bush shopping centre. We have been trialing various
approaches at these locations to maximize the customer acquisition
opportunities that that these high footfall locations present. We
are pleased to report that as a result of these initiatives the
number of new customers acquired at these locations has increased
by circa 30%.
Our Indian franchise, which is now trading under the BOTB brand
from Hyderabad airport continues to trade well, with further sites
in Mumbai and Delhi under negotiation. The royalty-based agreement
allows them to leverage our systems and software, as well as our
marketing and operating experience.
Online marketing is now the key customer acquisition channel for
the business, and we have grown the team at head office to support
this. We recruit new players through a multitude of different
online channels and the resources and marketing spend dedicated to
this has increased significantly compared to the prior period. The
majority of these channels can be tracked very precisely, allowing
us to calculate an accurate return on investment. For the first
time, however, we have recently started to invest in less trackable
advertising mediums such as TV and radio. Although harder to
precisely calculate the return on investment these channels
provide, they enable us to reach a much wider audience. Further
testing is underway and we hope to increase investment in these
channels going forward.
Social media marketing and validation continues to be a powerful
channel for the business. Our Facebook page now has over 145,000
followers and we are building a real sense of community, with many
customers - both new and existing, discussing the latest cars,
results, winners, etc. Our website www.botb.com recorded an average
of 225,000 unique visitors per month, and activity on all social
channels is expected to be scaled up this year with increased
marketing spend across the spectrum.
During the period, we decided to simplify the branding of the
Company, moving from Best of the Best to the more streamlined BOTB,
and introduced a new logo. Our website www.botb.com is also nearing
the completion of a complete rebuild and redesign, to take
advantage of the latest online and database technologies. This will
improve the performance of the site for our customers as well as
the back end functionality we use internally. It will also add
important new functionality for our customers such as enhanced
loyalty features, player leagues and other community and content
facilities. The updated design will refresh the site for current
users and make it more appealing to convert new customers. We
expect this to be rolled out approximately mid-way through the
calendar year.
We look forward to the continued growth in player acquisition,
both through our airport and shopping centre locations, and through
our increased focus on online channels and television.
Outlook
It has been an exciting 6 months as we transition to an
increasingly online business, with some real success starting to
show from online customer acquisition. We look forward to
maintaining this momentum and building on the encouraging start to
the financial year.
I look forward to updating shareholders on further progress in
due course.
William Hindmarch
Chief Executive
(MORE TO FOLLOW) Dow Jones Newswires
January 12, 2016 02:00 ET (07:00 GMT)
12 January 2016
BEST OF THE BEST PLC
Unaudited Consolidated Income Statement
For The Period Ended 31(st) October 2015
___________________________________________________________________________________________________
Six Months Six Months Year Ended
Ended Ended 30/04/15
31/10/15 31/10/14 Audited
Unaudited Unaudited (Restated)
(Restated)
Notes GBP'000 GBP'000 GBP'000
Revenue 1,2 4,976 3,834 8,973
Cost of sales (2,033) (1,377) (3,621)
---------------- ------------------ ------------------
GROSS PROFIT 2,943 2,457 5,352
Administrative expenses (2,466) (2,027) (4,399)
---------------- ------------------ ------------------
OPERATING PROFIT 477 430 953
Finance income 1 1 2
---------------- ------------------ ------------------
PROFIT BEFORE TAX 478 431 955
Tax 5 (132) (87) (193)
---------------- ------------------ ------------------
PROFIT FOR THE PERIOD 346 344 762
================ ================== ==================
Profit on earnings per
share expressed
in pence per share: 3
Basic from continuing
operations 3.68 3.77 8.38
Diluted from continuing
operations 3.53 3.49 7.76
BEST OF THE BEST PLC
Unaudited Consolidated Statement of Comprehensive
Income
For The Period Ended 31(st) October 2015
___________________________________________________________________________________________________
Six Months Six Months Year Ended
Ended Ended 30/04/15
31/10/15 31/10/14 Audited
Unaudited Unaudited (Restated)
(Restated)
Notes GBP'000 GBP'000 GBP'000
PROFIT FOR THE FINANCIAL
PERIOD 346 344 762
Share options exercised 118 - -
Treasury share purchase (14) - -
---------------- ----------------- -----------------
TOTAL COMPREHENSIVE INCOME
FOR THE PERIOD 450 344 762
================ ================= =================
BEST OF THE BEST PLC
Unaudited Consolidated Statement of Financial Position
31(st) October 2015
_________________________________________________________________________________________________
Six Months Six Months Year Ended
Ended Ended 30/04/15
31/10/15 31/10/14 Audited
Unaudited Unaudited (Restated)
(Restated)
Notes GBP'000 GBP'000 GBP'000
ASSETS
NON-CURRENT ASSETS
Development costs 105 - -
Property, plant and equipment 1,125 1,065 1,053
Investments 70 - 70
Deferred tax 42 90 83
---------- ----------- -----------
1,342 1,155 1,206
CURRENT ASSETS
Inventories 398 483 501
Trade and other receivables 660 597 685
Tax Receivables - - 8
Cash and cash equivalents 2,192 2,426 1,907
---------- ----------- -----------
3,250 3,506 3,101
TOTAL ASSETS 4,592 4,661 4,307
========== =========== ===========
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 485 455 455
Treasury shares (14) - -
Share Premium 118 1,783 -
Capital redemption reserve 197 197 197
Share-based payment reserve 1 148 148 148
Retained earnings 1,855 743 1,625
---------- ----------- -----------
TOTAL EQUITY 2,789 3,326 2,425
---------- ----------- -----------
LIABILITIES
CURRENT LIABILITES
Trade and other payables 1,500 1,112 1,593
Tax payable 303 223 289
TOTAL LIABILITIES 1,803 1,335 1,882
========== =========== ===========
TOTAL EQUITY AND LIABILITIES 4,592 4,661 4,307
========== =========== ===========
BEST OF THE BEST PLC
Unaudited Consolidated Statement of Changes in Equity
For The Period Ended 31(st) October 2015
Called Profit
up
share and Share
loss
capital Account Premium
GBP'000 GBP'000 GBP'000
Balance at 1 May 2014 455 660 1,783
Changes in equity
Capital Reduction - - (1,783)
Treasury shares - - -
Dividends - (1,419) -
Total comprehensive income - 2,384 -
-------- -------- --------
Balance at 30 April 2015 455 1,625 -
-------- -------- --------
Changes in equity
Share options exercised 30 - 118
Treasury shares - - -
Dividends - (116) -
Total comprehensive income - 346 -
-------- -------- --------
Balance at 31 October 2015 485 1,855 118
======== ======== ========
Capital
redemption Other Treasury Total
reserve Reserves Shares Equity
GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 May 2014 197 148 (161) 3,082
Changes in equity
Capital Reduction - - - (1,783)
Dividends - - - (1,419)
Total comprehensive
income - - 161 2,545
----------- --------- --------- --------
Balance at 30 April
2015 197 148 - 2,425
----------- --------- --------- --------
Changes in equity
(MORE TO FOLLOW) Dow Jones Newswires
January 12, 2016 02:00 ET (07:00 GMT)
Share options exercised - - - 148
Treasury shares - - (14) (14)
Dividends - - - (116)
Total comprehensive
income - - - 346
----------- --------- --------- --------
Balance at 31 October
2015 197 148 (14) 2,789
=========== ========= ========= ========
BEST OF THE BEST PLC
Unaudited Consolidated Cash Flow Statement
For The Period Ended 31(st) October 2015
________________________________________________________________________________________________
Six Months Six Months Year
Ended Ended Ended
31/10/15 31/10/14 30/04/15
Unaudited Unaudited Audited
(Restated) (Restated)
Cash flows from operating Notes GBP'000 GBP'000 GBP'000
activities
Cash generated from operations 525 367 1,323
Tax paid (69) (38) (78)
--------------- --------------- ---------------
Net cash from operating
activities 456 329 1,245
Cash flows from investing
activities
Purchase of intangible fixed
assets (100) - -
Purchase of tangible fixed
assets (90) (48) (95)
Purchase of tangible fixed
investments - - (70)
Sale of tangible fixed assets - - -
Interest received 1 1 2
--------------- --------------- ---------------
Net cash from investing
activities (189) (47) (163)
Cash flows from financing
activities
Share issue 30 - -
Share options exercised 118 - -
Equity dividends paid (116) (100) (1,419)
Treasury shares purchase (14) - -
--------------- --------------- ---------------
Net cash from financing
activities 18 (100) (1,419)
Increase/(decrease) in cash
and cash equivalents 285 182 (337)
Cash and cash equivalents
at beginning of period 1,907 2,244 2,244
--------------- --------------- ---------------
Cash and cash equivalents
at end of period 2,192 2,426 1,907
=============== =============== ===============
BEST OF THE BEST PLC
Notes to the Interim Financial Statements
For The Year Ended 31(st) October 2015
1. BASIS OF PREPARATION
These condensed interim financial statements are for the six
months ended 31 October 2015. They have been prepared with regard
to the requirements of International Financial Reporting Standards
as adopted by the EU. They do not include all of the information
required for full financial statements, and should be read in
conjunction with the financial statements (under IFRS) of the Group
for the year ended 30 April 2015.
The group is listed on the Alternative Investment Market ("AIM")
of the London Stock Exchange and has prepared the interim financial
statements in accordance with AIM rule 18. The group has elected
not to adopt the full scope of IAS 34 'Interim Financial Reports',
which is a voluntary requirement.
The financial statements have been prepared under the historical
cost convention. Principal accounting policies adopted are
consistent with those of the annual financial statements for the
year ended 30 April 2015.
Significant accounting policies include;
Revenue recognition
Revenue represents the value of tickets sold in respect of
competitions which have been completed at the accounting date. A
competition is completed when the Group closes entries.
Share based payment
The Company has applied the requirements of IFRS 2 to share
option schemes allowing certain employees within the Company to
acquire shares of the Company. For all grants of share options, the
fair value as at the date of grant, is calculated using the
Black-Scholes options pricing model, taking into account the terms
and conditions upon which the options were granted. The amount
recognised as an expense is adjusted to reflect the number of share
options that are likely to vest, except where forfeiture is only
due to market based conditions not achieving the threshold for
vesting. The expense is recognised over the expected life of the
option.
2. SEGMENTAL REPORTING
The directors consider that the primary reporting format is by
business segment and that there is only one such segment being that
of competition operators. This disclosure has already been provided
in these financial statements.
IFRS8 "Operating Segments", which came into effect not later
than accounting periods beginning on 1 January 2009, requires
identification and reporting of operating segments on the basis of
internal reports that are regularly reviewed by the Board in order
to allocate resources to the segment and assess its performance.
The Company assessed the impact of IFRS8 and concluded that it
would not impact the segments identified in this interim
report.
3. EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the profit
for the relevant financial period attributable to ordinary equity
holders of the entity by the weighted average number of ordinary
shares in issue during the relevant financial periods. The weighted
average number of equity shares in issue is 9,398,052 (31 October
2014: 9,099,052; 30 April 2015: 9,099,052). The earnings, being the
profit after tax, are GBP346,113 (31 October 2014: GBP343,242; 30
April 2015: GBP762,773).
Diluted earnings per share is calculated by adjusting earnings
and weighted average number of ordinary shares outstanding to
assume conversion of dilutive potential ordinary shares. Potential
ordinary shares shall be treated as dilutive when, and only when,
their conversion to ordinary shares would decrease earnings per
share or increase loss per share from continuing operations. The
effect of dilutive securities for the period is to increase the
weighted average number of shares by 415,321 shares (31 October
2014: 708,169; 30 April 2015: 727,677).
4. DIVIDENDS
A final dividend, based on the results for the year ended 30
April 2015 of 1.2p per share was paid on 15 October 2015 (30 April
2014; 1.1p).
5. TAXATION
The current year income tax liability for the six months ended
31 October 2015 is estimated at GBP131,664 (period ended 31 October
2014; GBP87,022).
6. PRIOR PERIOD ADJUSTMENT
During December 2015, HMRC made a decision in favour of the
company affecting the VAT treatment of prizes awarded since
December 2010. The impact of this amendment has been a refund, net
of fees and corporation tax of GBP336,000 which has been adjusted
through retained earning as at 1(st) May 2014.
7. ULTIMATE CONTROLLING PARTY
The ultimate controlling party at the end of this interim period
was Mr W. Hindmarch, the Chief Executive Officer of the company,
who owns 51.8% of the issued share capital at the balance sheet
date.
8. PUBLICATION OF NON-STATUTORY ACCOUNTS
The financial information contained in this interim statement
does not constitute statutory accounts as defined in sections 434
of the Companies Act 2006. All information is unaudited apart from
that included for the year ended 30 April 2015.
The statutory accounts for the financial year ended 30 April
2015 were prepared under IFRS as adopted by the EU. These accounts,
upon which the auditors issued an unqualified opinion did not
include references to any matters to which the auditors drew
attention by way of emphasis without qualifying their report and
did not contain statements under 498(2) or (3), (accounting records
or returns inadequate, accounts not agreeing with records and
returns or failure to obtain necessary information and
explanations) of the Companies Act 2006, have been delivered to the
Registrar of Companies.
(MORE TO FOLLOW) Dow Jones Newswires
January 12, 2016 02:00 ET (07:00 GMT)
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