RNS Number:4962S
Gaming Corporation PLC
26 November 2003
Gaming Corporation PLC
Preliminary results for the year ended 30 September 2003
Gaming Corporation PLC, (the "Group") a leading online casino operator and owner
of the www.casino.co.uk gaming portal, today announces preliminary results for
the year ended 30th September 2003.
Highlights:
Turnover increased to #8.6 million, (2002: #842,593)
Online casino www.play.casino.co.uk trading profitably
Over 100,000 unique visitors to www.casino.co.uk gambling portal
The Group currently operates two online gaming businesses; www.casino.co.uk a
business that the Directors believe is now the largest online casino portal in
the UK, and www.play.casino.co.uk a proprietary online casino.
It is the Group's intention to expand its existing operations through both
acquisition and organic growth. The Board is in preliminary negotiations to
acquire further gaming businesses and to further expand its range of gaming
products.
Justin Drummond, Chief Executive commenting on the results said,
"This has been an exciting year in which the Group has successfully become a
leading interactive gaming business. These results are a full vindication of
this strategy and the Board now believes that we are well positioned in a fast
growing and exciting sector and remain very confident about the future prospects
for the group".
For further information contact:
Justin Drummond, Chief Executive Tel. 0207 349 4300
Damion Greef, Communications Director Tel. 07736 381 030
Chairman's Statement
Introduction
The Board of Gaming Corporation plc is pleased to present the results of the
Group for the year ended 30 September 2003.
The Group has continued to make significant progress during 2003 having grown
all of the operating divisions. This has resulted in a marked improvement in the
Group's overall financial performance and the stated strategy of creating a
leading interactive gaming business.
The Group's gaming portal www.casino.co.uk has continued to experience
profitable growth and now generates in excess of 100,000 visits a month and
provides marketing services to some of the World's leading gaming companies
including Victor Chandler and Ladbrokes. During the year there has been
significant improvement in both the technology platform and content provided by
the website and the Directors now believe that www.casino.co.uk is the leading
online casino portal operating in the UK marketplace.
The proprietary online casino operation www.play.casino.co.uk, launched through
a software licensing deal with Boss Media AB in December 2002 has continued to
perform above expectations and has already built a substantial customer base.
During the year the software platform has been upgraded significantly improving
the functionality and player experience on the Group's flagship download casino.
In October 2003 the Group's product offering was further enhanced by the launch
of a non-download browser based casino allowing players to play a wide variety
of casino games without the need to download a software application.
Financial Summary
The results for the year ended 30 September 2003 show consolidated turnover of #
8,602,709 (2002: #842,593), a loss attributable to the members of the Group for
the year of #791,275 (2002: #2,444,956) and a loss for the year before goodwill
amortisation of #370,592 (2002: #369,159). At the end of the year, net assets
were #1,473,077 (2002: #1,689,077).
Board changes
During the period Jason Drummond was appointed as Executive Chairman and David
Rogers stepped down from Chairman to Non-executive Director. In addition, Damion
Greef was appointed as Communications Director and Paul McGroary and James
Dudgeon were appointed as Non-executive Directors.
Current Trading and Prospects
Having successfully re-focussed and substantially grown the business during the
year, the Group is actively seeking acquisitions and opportunities to broaden
the range of gaming products. The Directors believe the Group is well positioned
in a fast growing and exciting sector and remain confident about the future
prospects for the Group.
Jason Drummond
Chairman
Consolidated profit and loss account
For the year ended 30 September 2003
2003 2002
# #
Turnover 8,602,709 842,593
------------------------- ---------- ----------
Turnover - continuing activities 8,558,317 678,521
Turnover - discontinued activities 44,392 164,072
------------------------- ---------- ----------
Cost of sales (8,051,198) (308,663)
Gross profit 551,511 533,930
------------------------- ---------- ----------
Gross profit - continuing activities 507,699 369,858
Gross profit - discontinued activities 43,812 164,072
------------------------- ---------- ----------
Selling and distribution costs (210,616) (25,297)
Administrative expenses:
before goodwill amortisation (644,750) (925,259)
goodwill amortisation (420,683) (810,552)
impairment of goodwill - (1,265,245)
(1,065,433) (3,001,056)
------------------------- ---------- ----------
Group operating loss attributable to
continuing activities (716,211) (2,271,157)
------------------------- ---------- ----------
Group operating loss attributable to
discontinued activities (8,327) (221,266)
------------------------- ---------- ----------
Group operating loss (724,538) (2,492,423)
Interest receivable and similar income 1,609 5,680
Interest payable and similar charges (10,605) (22,773)
Loss on ordinary activities before taxation (733,534) (2,509,516)
Taxation (58,622) 64,137
Loss on ordinary activities for the period (792,156) (2,445,379)
Minority interest 881 423
Loss for the period attributable
to members of the parent company (791,275) (2,444,956)
Loss per share - basic & diluted 1.03p 5.27p
Loss per share - adjusted 0.48p 0.79p
There were no other recognised gains and losses for the period.
Consolidated balance sheet
As at 30 September 2003
Group Group
2003 2002
# #
Fixed assets
Intangible assets 1,087,610 1,634,443
Tangible assets 166,234 78,669
Investments - 2,523
1,253,844 1,715,635
Current assets
Debtors 276,255 513,293
Cash at bank and
in hand 306,919 104,801
583,174 618,094
Creditors: amounts
falling due within
one year (363,941) (625,868)
Net current assets 219,233 (7,774)
Total assets less
current liabilities 1,473,077 1,707,861
Creditors: amounts
falling due after more
than one year - (18,784)
Net assets 1,473,077 1,689,077
Capital and reserves
Called up share capital 2,920,993 2,356,920
Share premium account 717,948 705,865
Other reserve 1,422,065 1,422,065
Profit and loss account (3,585,927) (2,794,652)
Shareholders' funds 1,475,079 1,690,198
Minority interests (2,002) (1,121)
1,473,077 1,689,077
Net asset value per ordinary share 1.38p 3.36p
Consolidated statement of cash flows
For the year ended 30 September 2003
2003 2002
# #
Net cash outflow from operating activities (234,689) (360,109)
Returns on investments and servicing
of finance
Interest received 1,609 5,680
Interest paid (10,605) (22,773)
(8,996) (17,093)
Taxation
Corporation tax paid - -
Capital expenditure
Payments to acquire tangible fixed assets (151,371) (25,063)
Proceeds of disposal of tangible fixed assets - 2,373
(151,371) (22,690)
Acquisitions and disposals
Disposal of subsidiary undertakings 74,648 -
Net overdrafts disposed of with subsidiary
undertakings 9.600 -
84,248 -
Net cash outflow before financing (310,808) (399,892)
Financing
Issue of ordinary share capital 576,156 83,332
Loan repayments (2,500) -
Increase in loans 6,736
573,656 90,068
Increase/(decrease) in cash 262,848 (309,824)
Reconciliation of net cash flow to movement in net funds
2003 2002
# #
Increase/(decrease) in cash 262,848 (309,824)
Decrease/(increase) in long term loans 2,500 (6,736)
Change in net funds resulting from cash flows 265,348 (316,560)
Non cash movement in changes in debt 46,284 -
Movement in net funds 311,632 (316,560)
Net funds at 1 October 2002 (69,098) 247,462
Net funds at 30 September 2003 242,534 (69,098)
Notes to the accounts
As at 30 September 2003
1. Operating loss
The operating loss is stated after charging:
Group Group
2003 2002
# #
Auditors' remuneration - audit services 15,000 17,500
Auditors' remuneration - non audit services - 15,000
Depreciation of tangible fixed assets 59,065 50,667
Amortisation of intangible fixed assets 360 308
Amortisation of goodwill 420,683 810,552
Impairment of goodwill - 1,265,245
Operating lease rentals - land and buildings 40,504 44,503
Operating lease rentals - computer equipment 10,664 5,088
Administrative expenses before goodwill include #628,787 (2002: #723,103) in
relation to continuing activities and #15,963 (2002: #202,156) in relation to
discontinued activities.
2. Taxation
Group Group
2003 2002
# #
Corporation tax (55,633) -
Deferred tax charge 114,255 (64,137)
Current tax charge 58,622 (64,137)
3. Loss and net asset value per ordinary share
Group Group
2003 2002
The calculation of loss per ordinary share is based
on the 76,470,219 46,406,851
effective weighted average number of shares in
issue during the period
The adjusted loss per share is based on the loss
after tax and
before goodwill amortisation:
Loss after tax and minority interests as reported #791,275 #2,444,956
Goodwill #(420,683) #(2,075,797)
#370,592 #369,159
There is no dilutive effect of warrants and options due to the fair value of the
shares being less than the exercise price of those warrants and options.
The calculation of net asset value per ordinary share is based on a net asset
value of #1,473,077 (2002: #1,689,077) and 106,665,690 (2002: 50,258,400)
ordinary shares in issue at 30 September 2003.
4. Reconciliation of movements in shareholders' funds
Group
#
At 1 October 2002 1,689,077
Total recognised gains and losses (791,275)
New shares issued 576,156
Minority interest (881)
At 30 September 2003 1,473,077
5. Notes to the statement of cash flows
(a) Reconciliation of operating loss to net cash outflow from operating
activities
2003 2002
# #
Operating loss (724,538) (2,492,423)
Depreciation 59,065 50,667
Loss on disposal of fixed assets - 1,270
Amortisation of intangible fixed assets 360 308
Amortisation of goodwill 420,683 810,552
Impairment of goodwill - 1,265,245
Write-off of investment 2,523 -
Increase in debtors 178,415 (78,398)
Increase in creditors (171,197) 82,670
(234,689) (360,109)
(b) Analysis of changes in net funds
1 October Cash flow Non cash 30 September
2002 movement 2003
# # # #
Cash at bank and in hand 104,801 202,118 - 306,919
Bank overdrafts (125,115) 60,730 - (64,385)
Net cash (20,314) 262,848 - 242,534
Loans (48,784) 2,500 46,284 -
(69,098) 265,348 46,284 242,534
6. The financial information set out in the announcement does not
constitute the Company's statutory accounts for the years ended 30th September
2003 or 2002. The financial information for the year ended 30th September 2002
is derived from the statutory accounts for that year which have been delivered
to the Registrar of Companies. The auditors reported on those accounts: their
report was unqualified and did not contain a statement under s237(2) or (3)
Companies Act 1985. The statutory accounts for the year ended 30th September
2003 will be finalised on the basis of the financial information presented by
the Directors in this preliminary announcement and will be delivered to the
Registrar of Companies following the Company's Annual General Meeting.
7. Copies of this preliminary statement may be obtained from the
Company Secretary, Gaming Corporation plc, Second Floor, The Plaza, 535 Kings
Road, London, SW10 0SZ.
26 November 2003
This information is provided by RNS
The company news service from the London Stock Exchange
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