TIDMGMR
RNS Number : 0682M
Gaming Realms PLC
12 September 2023
12 September 2023
Gaming Realms plc
(the "Company" or the "Group")
Interim Results
Content licensing revenue grew 37% to GBP8.8m after 12
consecutive half years of growth
37% increase in Adjusted EBITDA(1) to GBP4.8m
Gaming Realms plc (AIM: GMR), the developer and licensor of
mobile focused gaming content, is pleased to announce its interim
results for the six months to 30 June 2023 (the "Period" or
"H1'23").
Financial highlights:
H1'23 H1'22 Change
GBPm GBPm %
----------------------------- ------ ------ --------
Revenue (Content licensing) 8.8 6.4 +37%
Revenue (Brand licensing) 1.0 0.3 +222%
Revenue (Social) 1.8 1.8 -2%
------ ------ --------
Total revenue 11.5 8.5 +36%
------ ------ --------
Adjusted EBITDA 4.8 3.5 +37%
Profit before tax 2.4 1.4 +74%
-- Total revenue grew 36% to GBP11.5m in H1'23 (H1'22: GBP8.5m)
-- Group Adjusted EBITDA grew 37% to GBP4.8m (H1'22: GBP3.5m),
representing a 41% Adjusted EBITDA margin (H1'22: 41%)
-- Total licensing revenues grew 46% to GBP9.8m (H1'22: GBP6.7m)
-- Content licensing revenue increased 37% to GBP8.8m (H1'22:
GBP6.4m) with an EBITDA margin of 54% (H1'22: 52%)
-- Brand licensing revenue increased 222% to GBP1.0m (H1'22: GBP0.3m)
-- Profit before tax increased 74% to GBP2.4m (H1'22: GBP1.4m)
-- Net cash at period end up 54% to GBP4.5m (Dec'22: GBP2.9m)
demonstrating the cash generative nature of the Group's business
model
Operational highlights:
-- Launched with 25 new partners globally, including Bet365 in
the UK, Betway, OLG (Provincial Lottery) and LeoVegas in Ontario
and Pokerstars in New Jersey
-- Submitted iGaming Supplier Licenses in British Columbia and
South Africa and the Company was granted its Swedish Gaming
Authority License
-- Secured brand licensing agreements for Tetris and TAITO's
SPACE INVADERS, both expected to launch in the second half of
2023
-- Gained ISO 27001 certification, an internationally recognised
standard for managing information security
-- Released 5 new games into the market, including Slingo
Cleopatra and Slingo Money Train. The Group now has 70 games in its
portfolio (Dec'22: 65 games, Jun'22: 61 games)
Post period-end:
-- Licensing revenue increased 20% in the two months post
period-end compared to the same period in 2022
-- Launched Slingo Originals content with Betclic in the Portuguese regulated market
-- Released Slingo Cosmic Clusters
(1) EBITDA is profit before interest, tax, depreciation and
amortisation expenses and is a non-GAAP measure. The Group uses
EBITDA to comment on its financial performance. The Group uses
EBITDA before share option and related charges (Adjusted EBITDA) to
comment on its financial performance above.
Outlook for FY23:
Gaming Realms has continued its growth through the first half of
2023, as the Company continues to execute on its core strategy of
developing and licensing games globally to market-leading brands
and operators delivering high margin revenues.
This Period has seen a record performance for the Group in terms
of revenue and EBITDA, driven by our core content licensing
business which has had 12 consecutive half years of growth.
This strong momentum is expected to continue into the second
half of the year, given the Group is still entering new markets and
releasing new games, having recently launched with Betclic in
Portugal and having applied for a licence to supply its games to
the South African market and to the Lottery in British
Columbia.
The European market continues to be the largest contributor to
content licensing revenues, having grown 38% in the Period when
compared to the same period in 2022, launching 5 new Slingo games
and adding 9 new partners.
Our revenues from North American content licensing have
increased 37%, with the region accounting for 45% of content
licensing revenue. New Jersey continues to be our leading market,
but Pennsylvania and Michigan are growing strongly as we launch
more games with new partners. As at 30 June 2023, we were live with
57 games in New Jersey across 20 partners, 18 games across 12
partners in Pennsylvania and 28 games across 12 partners in
Michigan.
In total we have launched with 25 partners in H1 2023. This
growth is supported by the launch of premium games, including
Slingo Cleopatra and Slingo Money Train. With the upcoming launch
of Slingo SPACE INVADERS and Tetris Slingo, we are confident of
further growth for the remainder of the year and the Board remains
comfortable with market expectations around FY23 financial
performance.
Commenting on the first half performance, Mark Segal, Chief
Executive Officer, said:
"We have delivered a strong first half performance as we have
grown our international licensing business with the launch of our
innovative Slingo content to a growing number of partners and
players.
"The Group has a strong pipeline of new business and the outlook
for the Group remains positive. We are seeing growth in our
existing partnerships coupled with new operator, product and market
launches, which gives us great confidence in terms of the longer
term prospects for the business."
An analyst briefing will be held virtually at 11.00 am today. To
attend, please contact Yellow Jersey at
gamingrealms@yellowjerseypr.com .
Enquiries
Gaming Realms plc
Michael Buckley, Executive Chairman
Mark Segal, CEO
Geoff Green, CFO 0845 123 3773
Peel Hunt LLP - NOMAD and Joint Broker
George Sellar
Andrew Clark
Lalit Bose 020 7418 8900
Investec Bank plc - Joint Broker
Bruce Garrow
Alex Wright
Ben Farrow 020 7597 5970
Yellow Jersey
Charles Goodwin
Annabelle Wills 07747 788 221
About Gaming Realms
G aming Realms creates and licenses innovative games for mobile,
with operations in the UK, U.S. and Canada. Through its unique IP
and brands, Gaming Realms is bringing together media, entertainment
and gaming assets in new game formats. The Gaming Realms management
team includes accomplished entrepreneurs and experienced executives
from a wide range of leading gaming and media companies.
Business review
The Group delivered overall revenue growth of 36% to GBP11.5m
(H1'22: GBP8.5m), driven by the Group's core content licensing
business.
The Group generated EBITDA of GBP4.5m (H1'22: GBP3.3m) and
GBP4.8m before share option and related charges (H1'22:
GBP3.5m).
The GBP1.2m increase in EBITDA generated compared with the prior
period has seen the Group record a profit before tax of GBP2.4m
(H1'22: GBP1.4m), an increase of GBP1.0m on the prior period.
Licensing
Licensing segment revenues increased 46% to GBP9.8m (H1'22:
GBP6.7m), which is broken down as:
-- Content licensing revenue growth of 37% to GBP8.8m (H1'22: GBP6.4m); and
-- Brand licensing revenue increased 222% to GBP1.0m (H1'22: GBP0.3m).
The segment delivered GBP5.7m EBITDA in the period, a 57%
overall uplift over the GBP3.6m in H1'22.
Content licensing
The core focus of the Group continues to be growing the content
licensing business by way of expanding into new regulated
territories, growing our unique Slingo games portfolio and
developing deep relationships with new and existing partners to
maximise value and engagement.
During the period under review, the Group went live with a
further 25 partners in existing markets within Europe and North
America. The Company was also granted its Swedish Gaming Authority
license, allowing the Company to continue to supply its games to
the Swedish market, and submitted license applications in both
British Columbia, Canada and South Africa.
An additional 5 new Slingo games were released to the market
during the period, bringing the Group's games portfolio to 70 games
at the period end (H1'22: 61 games).
Slingo is a unique genre of game in the market, which is driving
engagement with partners. It continues to prove highly popular with
both partners and players.
This resulted in a 37% increase in content licensing revenues to
GBP8.8m (H1'22: GBP6.4m). Total segmental expenses (excluding share
option and related charges) increased 34% to GBP4.0m (H1'22:
GBP3.0m), further demonstrating the operational leverage of the
content licensing business.
After the period end, the Group began distributing its content
in the Portuguese regulated market.
Brand licensing
Revenues from the Group's brand licensing activities, which are
non-core, increased to GBP1.0m (H1'22: GBP0.3m). This is a result
of two brand deals completed in the period, including a deal with
Entain to launch Slingo Bingo which went live in May 2023.
Social
Revenues in the Group's social publishing business reduced 2% to
GBP1.75m in the period (H1'22: GBP1.79m).
Marketing expenses of GBP0.3m (H1'22: GBP0.0m) have been
invested during the period aimed at increasing player numbers,
activity and revenues over a 12-month period. Management do not
expect this level of marketing investment to be repeated in the
second half of the year, as we expect revenues to be maintained.
Social remains a business where we can further monetise our Slingo
portfolio.
Excluding marketing expenses, segmental expenses increased 12%
to GBP1.2m (H1'22: GBP1.1m) as a result of further investment in
the development and operational team to support the Group's growth
plan.
Cashflow and balance sheet
The Group's cash balance at 30 June 2023 was GBP4.5m, an
increase of GBP1.6m from the GBP2.9m reported at 31 December
2022.
The current period increase in cash was largely driven by the
GBP3.9m cash inflow from operations, offset by GBP2.2m development
costs capitalised during the period and GBP0.1m acquisition of
tangible and intangible assets.
The Group remains debt free following the repayment of the
convertible loan with Gamesys Group in December 2022.
The Board continues to review the optimal use of the cash
balance.
The Group's net asset position at the period end was GBP20.5m
(31 December 2022: GBP17.9m).
Dividend
The Board of Directors are not proposing an interim dividend for
the Period as it continues to execute on its strategy and invest in
the growth of the business.
Consolidated statement of comprehensive income
for the 6 months ended 30 June 2023
6M 6M
30 June 30 June
2023 2022
Unaudited
Unaudited *
Note GBP GBP
------------------------------------------ ----- ------------------------ --------------------------
Revenue 2 11,543,255 8,507,887
Other income 63,147 -
Marketing expenses (437,398) (53,274)
Operating expenses (2,274,375) (1,780,497)
Administrative expenses (4,143,790) (3,194,016)
Share option and related charges 10 (246,056) (162,819)
EBITDA 2 4,504,783 3,317,281
----- ------------------------
Amortisation of intangible assets 6 (2,011,497) (1,737,493)
Depreciation of property, plant
and equipment 5 (135,044) (124,071)
Finance expense 3 (21,845) (117,769)
Finance income 3 15,873 13,038
------------------------------------------ ----- ------------------------ --------------------------
Profit before tax 2,352,270 1,350,986
Taxation credit 159,578 42,155
----- --------------------------
Profit for the period 2,511,848 1,393,141
------------------------------------------ ----- ------------------------ --------------------------
Other comprehensive income
Items that will or may be reclassified
to profit or loss:
Exchange (loss) / gain arising
on translation of foreign operations (95,724) 193,753
------------------------------------------ ----- ------------------------ --------------------------
Total other comprehensive income (95,724) 193,753
------------------------------------------ ----- ------------------------ --------------------------
Total comprehensive income 2,416,124 1,586,894
------------------------------------------ ----- ------------------------ --------------------------
Profit attributable to:
Owners of the parent 2,511,848 1,393,141
------------------------------------------ ----- ------------------------ --------------------------
Total comprehensive income attributable
to:
Owners of the parent 2,416,124 1,586,894
------------------------------------------ ----- ------------------------ --------------------------
Earnings per share Pence Pence
Basic 4 0.86 0.48
Diluted 4 0.84 0.47
------------------------------------------ ----- ------------------------ --------------------------
* Comparative numbers for the period ended 30 June 2022 have
been restated. See Note 1 for further details.
Consolidated statement of financial position
as at 30 June 2023
30 June 31 December
2023 2022
Unaudited Audited
Note GBP GBP
-------------------------------- ----- ------------- -------------
Non-current assets
Intangible assets 6 12,625,820 12,422,852
Property, plant and equipment 5 420,498 535,409
Deferred tax asset 871,255 287,407
Other assets 139,531 138,798
-------------------------------- ----- ------------- -------------
14,057,104 13,384,466
-------------------------------- ----- ------------- -------------
Current assets
Trade and other receivables 7 5,231,496 5,336,330
Cash and cash equivalents 4,490,232 2,922,775
-------------------------------- ----- ------------- -------------
9,721,728 8,259,105
-------------------------------- ----- ------------- -------------
Total assets 23,778,832 21,643,571
-------------------------------- ----- ------------- -------------
Current liabilities
Trade and other payables 8 2,738,282 3,270,319
Lease liabilities 125,848 217,731
-------------------------------- ----- ------------- -------------
2,864,130 3,488,050
-------------------------------- ----- ------------- -------------
Non-current liabilities
Deferred tax liability 238,246 75,592
Lease liabilities 126,752 167,680
-------------------------------- ----- ------------- -------------
364,998 243,272
-------------------------------- ----- ------------- -------------
Total liabilities 3,229,128 3,731,322
-------------------------------- ----- ------------- -------------
Net assets 20,549,704 17,912,249
-------------------------------- ----- ------------- -------------
Equity
Share capital 9 29,288,826 29,200,676
Share premium 87,670,735 87,653,774
Merger reserve (67,673,657) (67,673,657)
Foreign exchange reserve 1,453,977 1,549,701
Retained earnings (30,190,177) (32,818,245)
-------------------------------- ----- -------------
Total equity 20,549,704 17,912,249
-------------------------------- ----- ------------- -------------
Consolidated statement of cash flows
for the 6 months ended 30 June 2023
30 June 30 June
2023 2022
Unaudited Unaudited
Note GBP GBP
------------------------------------------- ------ ------------ ------------
Cash flows from operating activities
Profit for the period 2,511,848 1,393,141
Adjustments for:
Depreciation of property, plant and
equipment 5 135,044 124,071
Amortisation of intangible fixed assets 6 2,011,497 1,737,493
Finance income 3 (15,873) (13,038)
Finance expense 3 21,845 117,769
Income tax credit (159,578) (42,155)
Exchange differences (6,653) 5,413
Share based payment expense 10 116,220 253,775
Increase in trade and other receivables 119,974 (1,427,075)
Decrease in trade and other payables (215,605) (145,627)
Decrease in other assets - 11,848
------------------------------------------- ------ ------------ ------------
Net cash flows from operating activities
before taxation 4,518,719 2,015,615
------------------------------------------- ------ ------------ ------------
Net tax paid in the period (578,675) -
------------------------------------------- ------ ------------ ------------
Net cash flows from operating activities
before taxation 3,940,044 2,015,615
------------------------------------------- ------ ------------ ------------
Investing activities
Acquisition of property, plant and
equipment 5 (25,336) (99,376)
Acquisition of intangible assets 6 (83,763) (83,143)
Capitalised development costs 6 (2,204,419) (2,088,552)
------------------------------------------- ------ ------------ ------------
Net cash used in investing activities (2,313,518) (2,271,071)
------------------------------------------- ------ ------------ ------------
Financing activities
IFRS 16 lease payments (136,662) (103,282)
Issue of share capital on exercise
of options 9 105,111 13,332
Interest paid (13,866) (99,393)
------------------------------------------- ------ ------------ ------------
Net cash used in financing activities (45,417) (189,343)
------------------------------------------- ------ ------------ ------------
Net increase / (decrease) in cash
and cash equivalents 1,581,109 (444,799)
Cash and cash equivalents at beginning
of period 2,922,775 4,412,375
Exchange (loss) / gain on cash and
cash equivalents (13,652) 27,806
------------------------------------------- ------ ------------ ------------
Cash and cash equivalents at end of
period 4,490,232 3,995,382
------------------------------------------- ------ ------------ ------------
Consolidated statement of changes in equity
for the 6 months ended 30 June 2023
Foreign Total to
Merger Exchange Retained equity holders
Share capital Share premium reserve Reserve earnings of parents
GBP GBP GBP GBP GBP GBP
---------------------- --------------- --------------- ------------- ----------- ------------- -----------------
1 January 2022 28,970,262 87,370,856 (67,673,657) 1,418,269 (36,977,228) 13,108,502
---------------------- --------------- --------------- ------------- ----------- ------------- -----------------
Profit for the
period - - - - 1,393,141 1,393,141
Other comprehensive
income - - - 193,753 - 193,753
---------------------- --------------- --------------- ------------- ----------- ------------- -----------------
Total comprehensive
income
for the period - - - 193,753 1,393,141 1,586,894
---------------------- --------------- --------------- ------------- ----------- ------------- -----------------
Contributions by and
distributions
to owners
Share-based payment
on share
options (Note 10) - - - - 253,775 253,775
Exercise of options
(Note 9) 13,332 - - - 13,332
Conversion of loan 217,082 282,918 - - 106,000 606,000
30 June 2022
(unaudited) 29,200,676 87,653,774 (67,673,657) 1,612,022 (35,224,312) 15,568,503
---------------------- --------------- --------------- ------------- ----------- ------------- -----------------
1 January 2023 29,200,676 87,653,774 (67,673,657) 1,549,701 (32,818,245) 17,912,249
---------------------- --------------- --------------- ------------- ----------- ------------- -----------------
Profit for the
period - - - - 2,511,848 2,511,848
Other comprehensive
income - - - (95,724) - (95,724)
---------------------- --------------- --------------- ------------- ----------- ------------- -----------------
Total comprehensive
income
for the period - - - (95,724) 2,511,848 2,416,124
---------------------- --------------- --------------- ------------- ----------- ------------- -----------------
Contributions by and
distributions
to owners
Share-based payment
on share
options (Note 10) - - - - 116,220 116,220
Exercise of options
(Note 9) 88,150 16,961 - - - 105,111
30 June 2023
(unaudited) 29,288,826 87,670,735 (67,673,657) 1,453,977 (30,190,177) 20,549,704
---------------------- --------------- --------------- ------------- ----------- ------------- -----------------
Notes forming part of the consolidated financial statements
For the 6 months ended 30 June 2023
1. Accounting policies
General Information
Gaming Realms plc ("the Company") and its subsidiaries (together
"the Group").
The Company is admitted to trading on AIM of the London Stock
Exchange. It is incorporated and domiciled in the UK. The address
of its registered office is Two Valentine Place, London, SE1
8QH.
The results for the six months ended 30 June 2023 and 30 June
2022 are unaudited.
Basis of preparation
The financial information for the year ended 31 December 2022
included in these financial statements does not constitute the full
statutory accounts for that year. The Annual Report and Financial
Statements for 2022 have been filed with the Registrar of
Companies. The Independent Auditors' Report on the Annual Report
and Financial Statement for 2022 was unqualified, did not draw
attention to any matters by way of emphasis, and did not contain a
statement under 498(2) or 498(3) of the Companies Act 2006.
This interim report, which has neither been audited nor reviewed
by independent auditors, was approved by the board of directors on
11 September 2023. The financial information in this interim report
has been prepared in accordance with UK adopted international
accounting standards. The accounting policies applied by the Group
in this financial information are the same as those applied by the
Group in its financial statements for the year ended 31 December
2022 and which will form the basis of the 2023 financial
statements.
The consolidated financial statements are presented in
Sterling.
Restatement of comparatives
The comparative results for the period ended 30 June 2022 have
been restated for the following items:
-- Management believes the presentation of hosting costs as an
operating expense rather than an administrative expense more
accurately reflects the function of the expense. Therefore
GBP601,196 of hosting costs incurred in the comparative period have
been reclassified from administrative expenses to operating
expenses. This reclassification has no impact on reported EBITDA or
profit after tax for the comparative period.
-- In the financial statements for the year ended 31 December
2022, the functional currency of a group company was changed,
effective 1 January 2022. This change was omitted from the 2022
interim financial statements, which have been restated to reflect
this change from 1 January 2022. The restatement has reduced the
total amortisation charge by GBP15,079 to GBP1,737,493, and reduced
the tax credit by GBP2,564 to GBP42,155. The overall impact is no
change to the previously reported EBITDA and an increase in the
reported profit after tax by GBP15,515 for the comparative
period.
Going concern
The Group meets its day-to-day working capital requirements from
the cash flows generated by its trading activities and its
available cash resources.
The Group prepares cash flow forecasts and re-forecasts at least
bi-annually as part of the business planning process.
The Directors have reviewed forecast cash flows for the period
to December 2025, and consider that the Group will have sufficient
cash resources available to meet its liabilities as they fall
due.
Accordingly, these financial statements have been prepared on
the basis of accounting principles applicable to a going concern,
which assumes that the Group will realise its assets and discharge
its liabilities in the normal course of business.
EBITDA
EBITDA is a non-GAAP company specific measure defined as profit
or loss before tax adjusted for finance income and expense,
depreciation and amortisation. EBITDA before share option and
related charges (Adjusted EBITDA) is considered to be a key
performance measure by the Directors as it serves as an indicator
of financial performance.
2. Segment information
The Board is the Group's chief operating decision-maker.
Management has determined the operating segments based on the
information reviewed by the Board for the purposes of allocating
resources and assessing performance.
The Group has two reportable segments.
-- Licensing - B2B brand and content licensing to partners in the US and Europe; and
-- Social publishing - provides B2C freemium games to the US.
Revenue
The Group has disaggregated revenue into various categories in
the following table which is intended to:
-- Depict how the nature, amount, timing and uncertainty of
revenue and cash flows are affected by economic date; and
-- Enable users to understand the relationship with revenue segment information provided below.
Social
Licensing publishing Other Total
H1 2023 revenue GBP GBP GBP GBP
-------------------------- ----------- ------------- ------- -----------
Primary geographical markets
UK, including Channel
Islands 531,124 - - 531,124
USA 3,978,599 1,754,604 - 5,733,203
Isle of Man 392,765 - - 392,765
Malta 1,736,619 - - 1,736,619
Gibraltar 2,483,391 - - 2,483,391
Rest of the World 666,153 - 666,153
-------------------------- ----------- ------------- ------- -----------
9,788,651 1,754,604 - 11,543,255
-------------------------- ----------- ------------- ------- -----------
Contract counterparties
Direct to consumers
(B2C) - 1,754,604 - 1,754,604
B2B 9,788,651 - - 9,788,651
-------------------------- ----------- ------------- ------- -----------
9,788,651 1,754,604 - 11,543,255
-------------------------- ----------- ------------- ------- -----------
Timing of transfer of goods
and services
Point in time 9,788,651 1,754,604 - 11,543,255
Over time - - - -
-------------------------- ----------- ------------- ------- -----------
9,788,651 1,754,604 - 11,543,255
-------------------------- ----------- ------------- ------- -----------
2. Segment information (continued)
Social
Licensing publishing Other Total
H1 2022 revenue GBP GBP GBP GBP
-------------------------- ----------- ------------- ------- ----------
Primary geographical
markets
UK, including Channel
Islands 411,529 - 11,000 422,529
USA 2,857,929 1,788,722 - 4,646,651
Isle of Man 359,662 - - 359,662
Malta 1,224,280 - - 1,224,280
Gibraltar 1,208,956 - - 1,208,956
Rest of the World 645,809 - - 645,809
-------------------------- ----------- ------------- ------- ----------
6,708,165 1,788,722 11,000 8,507,887
-------------------------- ----------- ------------- ------- ----------
Contract counterparties
Direct to consumers
(B2C) - 1,788,722 - 1,788,722
B2B 6,708,165 - 11,000 6,719,165
-------------------------- ----------- ------------- ------- ----------
6,708,165 1,788,722 11,000 8,507,887
-------------------------- ----------- ------------- ------- ----------
Timing of transfer of goods
and services
Point in time 6,708,165 1,788,722 11,000 8,507,887
Over time - - - -
-------------------------- ----------- ------------- ------- ----------
6,708,165 1,788,722 11,000 8,507,887
-------------------------- ----------- ------------- ------- ----------
EBITDA
Licensing Social publishing Head Office Total
H1 2023 GBP GBP GBP GBP
----------------- --------------------------- ------------------------------------------ --------------------------- ------------------------
Revenue 9,788,651 1,754,604 - 11,543,255
Other income - 63,147 - 63,147
Marketing
expense (55,826) (334,197) (47,375) (437,398)
Operating
expense (1,622,353) (652,022) - (2,274,375)
Administrative
expense (2,342,829) (582,910) (1,218,051) (4,143,790)
Share option (50,100) (5,499) (190,457) (246,056)
and
related charges
----------------- --------------------------- ------------------------------------------ --------------------------- ------------------------
EBITDA 5,717,543 243,123 (1,455,883) 4,504,783
----------------- --------------------------- ------------------------------------------ --------------------------- ------------------------
2. Segment information (continued)
Licensing Social publishing Head Office Total
H1 2022 GBP GBP GBP GBP
----------------- ------------------------- ------------------------------------------ --------------------------- -------------------------
Revenue 6,708,165 1,788,722 11,000 8,507,887
Marketing (13,081) (2,063) (38,130) (53,274)
expense
Operating
expense (1,161,910) (618,587) - (1,780,497)
Administrative
expense (1,815,916) (485,343) (892,757) (3,194,016)
Share option
and
related
charges (77,067) (855) (84,897) (162,819)
----------------- ------------------------- ------------------------------------------ --------------------------- -------------------------
EBITDA 3,640,191 681,874 (1,004,784) 3,317,281
----------------- ------------------------- ------------------------------------------ --------------------------- -------------------------
As per Note 1, the restatement of comparative results relating
to hosting fees has also been reflected in the segmental
information. In the licensing segment GBP440,153 has been
reclassified from administrative expenses to operating expenses, in
the social publishing segment the reclassification is
GBP161,043.
3. Finance income and expense
6M 6M
30 June 30 June
2023 2022
GBP GBP
---------------------------------------- ----------------------------- -----------------------------
Finance income
Interest received 733 -
Interest income on unwind of deferred
income 15,140 13,038
----------------------------------------- ----------------------------- -----------------------------
Total finance income 15,873 13,038
----------------------------------------- ----------------------------- -----------------------------
Finance expense
Bank interest paid 13,866 9,519
Effective interest on other creditor - 94,497
Interest expense on lease liability 7,979 13,753
----------------------------------------- ----------------------------- -----------------------------
Total finance expense 21,845 117,769
----------------------------------------- ----------------------------- -----------------------------
4. Earnings per share
Basic earnings per share is calculated by dividing the result
attributable to ordinary shareholders by the weighted average
number of shares in issue during the period. The calculation of
diluted EPS is based on the result attributable to ordinary
shareholders and weighted average number of ordinary shares
outstanding after adjustment for the effects of all dilutive
potential ordinary shares. The Group's potentially dilutive
securities consist of share options.
6M 6M
30 June 30 June
2023 2022
GBP GBP
------------------------------------------- ------------ ------------
Profit after tax attributable to the
owners of the parent Company 2,511,848 1,393,141
Number Number
------------------------------------------- ------------ ------------
Denominator - basic
Weighted average number of ordinary
shares 292,174,223 291,309,072
Denominator - diluted
Weighted average number of ordinary
shares 292,174,223 291,309,072
Weighted average number of option shares 8,092,887 7,442,107
------------------------------------------- ------------ ------------
Weighted average number of shares 300,267,111 298,751,179
------------------------------------------- ------------ ------------
Pence Pence
------------------------------------------- ------------ ------------
Basic earnings per share 0.86 0.48
Diluted earnings per share 0.84 0.47
------------------------------------------- ------------ ------------
5. Property, plant and equipment
Computers Office
ROU lease Leasehold and related furniture
assets improvements equipment and equipment Total
GBP GBP GBP GBP GBP
----------------------- ----------- --------------- -------------- ---------------- ----------
Cost
At 1 January 2023 835,973 63,113 436,667 68,231 1,403,984
Additions - - 24,261 1,075 25,336
Disposals (121,996) - - - (121,996)
Exchange differences (4,279) (160) (3,320) (1,046) (8,805)
At 30 June 2023 709,698 62,953 457,608 68,260 1,298,519
----------------------- ----------- --------------- -------------- ---------------- ----------
Accumulated deprecation and
impairment
At 1 January 2023 493,168 46,326 266,456 62,625 868,575
Depreciation charge 78,193 6,163 49,137 1,551 135,044
Disposals (121,996) - - - (121,996)
Exchange differences (210) (160) (2,251) (981) (3,602)
At 30 June 2023 449,155 52,329 313,342 63,195 878,021
----------------------- ----------- --------------- -------------- ---------------- ----------
Net book value
At 1 January 2023 342,805 16,787 170,211 5,606 535,409
----------------------- ----------- --------------- -------------- ---------------- ----------
At 30 June 2023 260,543 10,624 144,266 5,065 420,498
----------------------- ----------- --------------- -------------- ---------------- ----------
6. Intangible assets
Customer Development Domain Intellectual
Goodwill database Software costs Licenses names Property Total
GBP GBP GBP GBP GBP GBP GBP GBP
---------- ----------- ---------- ------------- ---------- -------- -------------- -----------
Cost
At 1 January
2023 6,799,250 1,490,536 1,316,645 21,493,414 319,471 8,874 5,844,747 37,272,937
Additions - - 16,627 2,204,419 67,136 - - 2,288,182
Exchange
differences (54,383) - - (29,931) (392) - - (84,706)
At 30 June
2023 6,744,867 1,490,536 1,333,272 23,667,902 386,215 8,874 5,844,747 39,476,413
--------------- ---------- ----------- ---------- ------------- ---------- -------- -------------- -----------
Accumulated amortisation
and impairment
At 1 January
2023 1,650,000 1,490,536 1,291,285 14,879,872 129,430 8,874 5,400,088 24,850,085
Amortisation
charge - - 20,483 1,559,222 66,249 - 365,543 2,011,497
Exchange
differences - - - (10,989) - - - (10,989)
At 30 June
2023 1,650,000 1,490,536 1,311,768 16,428,105 195,679 8,874 5,765,631 26,850,593
--------------- ---------- ----------- ---------- ------------- ---------- -------- -------------- -----------
Net book
value
At 1 January
2023 5,149,250 - 25,360 6,613,542 190,041 - 444,659 12,422,852
--------------- ---------- ----------- ---------- ------------- ---------- -------- -------------- -----------
At 30 June
2023 5,094,867 - 21,504 7,239,797 190,536 - 79,116 12,625,820
--------------- ---------- ----------- ---------- ------------- ---------- -------- -------------- -----------
7 . Trade and other receivables
30 June 31 December
2023 2022
GBP GBP
--------------------------------- ---------- ------------
Trade receivables 2,755,937 3,497,710
Other receivables 262,098 145,506
Tax and social security 550,878 280,912
Prepayments and accrued income 1,662,583 1,412,202
--------------------------------- ---------- ------------
5,231,496 5,336,330
--------------------------------- ---------- ------------
All amounts shown fall due for payment within one year.
8. Trade and other payables
30 June 31 December
2023 2022
GBP GBP
-------------------------- ---------- ------------
Trade payables 830,430 669,024
Other payables 146,835 118,777
Tax and social security 158,931 464,557
Accruals 1,602,086 2,017,961
-------------------------- ---------- ------------
2,738,282 3,270,319
-------------------------- ---------- ------------
The carrying value of trade and other payables classified as
financial liabilities measured at amortised cost approximates fair
value. All amounts shown fall due for payment within one year.
9. Share capital
30 June 30 June 31 December 31 December
2023 2023 2022 2022
Ordinary shares Number GBP Number GBP
Ordinary shares of 292,888,281 29,288,826 292,006,775 29,200,676
------------ ----------- ------------ ------------
10 pence each
--------------------- ------------ ----------- ------------ ------------
The issue of 881,506 ordinary shares relates to the exercise of
share options during the period. The increase in share capital of
GBP88,150 and share premium of GBP16,961, totalling GBP105,111 is
disclosed in the consolidated statement of changes in equity and
consolidated statement of cash flows.
10. Share based payments
The share option and related charges income statement expense
comprises:
6M 6M
30 June 2023 30 June 2022
GBP GBP
------------------------------------ -------------- --------------
IFRS 2 share-based payment charge 116,220 253,775
Direct taxes related to share
options 129,836 (90,956)
------------------------------------ -------------- --------------
246,056 162,819
------------------------------------ -------------- --------------
IFRS 2 (Share-based payments) requires that the fair value of
equity settled transactions are calculated and systematically
charged to the statement of comprehensive income over the vesting
period. The total fair value that was charged to the income
statement in the period in relation to equity-settled share-based
payments was GBP116,220 (H1'22: GBP253,775).
Where individual EMI thresholds are exceeded or when unapproved
share options are exercised by overseas employees, the Group is
subject to employer taxes payable on the taxable gain on exercise.
Since these taxes are directly related to outstanding share
options, the income statement charge has been included within share
option and related charges. The Group uses its closing share price
at the reporting date to calculate such taxes to accrue. The tax
related income statement charge for the period was GBP129,836
(H1'22: GBP90,956 credit).
11. Related party transactions
Jim Ryan is a Non-Executive Director of the Company and the CEO
of Pala Interactive, which has a real-money online casino and bingo
site in New Jersey, Pennsylvania and Ontario. During the period,
total license fees earned by the Group were $30,259 (H1'22:
$10,401) with $23,180 due at 30 June 2023 (30 June 2022: $940).
During the period the Group distributed its content to certain
North American partners via Pala's B2B platform distribution
network, with platform fees of $7,933 being incurred (H1'22: $108)
of which $3,243 was owed at 30 June 2023 (30 June 2022: $108).
During the period GBP90,000 (H1'22: GBP75,000) of consulting
fees were paid to Dawnglen Finance Limited, a company controlled by
Michael Buckley. No amounts were owed at 30 June 2023 (30 June
2022: GBPNil).
12. Post balance sheet events
On 2 August 2023 3,455,000 share options were granted to certain
Directors and employees of the Group. All of the options vest on 30
June 2026. All of the options have an exercise price of nil
pence.
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END
IR NKDBDABKDACD
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