TIDMBOTB
RNS Number : 5025A
Best of the Best PLC
08 June 2016
Best of the Best plc
("Best of the Best", "BOTB", "the Company" or "the Group")
Preliminary results for the twelve months ended 30 April
2016
BOTB runs competitions to win cars both online and at retail
locations
Key Highlights:
-- Revenue up 12.6% to GBP10.10 million (2015: GBP8.97 million)
-- Profit before tax increased by 10.9% to GBP1.06 million (2015: GBP0.96 million)
-- Online revenue increased by 40.6% to GBP7.06 million (2015:
GBP5.02 million) - representing 70.5% of total revenue
-- Net assets of GBP1.59 million, underpinned by cash balances
of GBP1.2 million (following 1.2p ordinary dividend paid in October
2015, and19.5p special dividend paid in March 2016)
-- Significant investment in digital marketing and commencement of TV advertising
-- Company and operations rebranded from Best of the Best to BOTB
-- Weekly car competition well received and continues to drive sales
William Hindmarch, Chief Executive, said:
"I am pleased to announce a solid set of preliminary results
with increasing revenues and profits. The transformation from a
retail business to a predominantly online operation has continued,
with the majority of our revenues driven by digital channels,
realised through our website, www.botb.com.
Our online customer acquisition spend has significantly
increased during the year, with encouraging results. On the back of
these successful trials, we will be further increasing our player
acquisition and marketing investment this year.
Our weekly car competition continues to benefit from incremental
changes and continues to be well received by our customers both
online and at our airports and retail locations.
The business is well placed for future growth and we look
forward to updating shareholders on further 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
finnCap Matt Goode T: 020 7220
(Nominated Adviser) Carl Holmes 0500
Anthony Adams
Please visit www.botb.com for further information
Chief Executive's Statement
I am pleased to announce a solid set of preliminary results with
increased revenues and profits. The transformation of the business
from a historically retail focused business to a progressively
online operation has continued, with the majority of revenues now
being driven by digital channels, realised through our website,
www.botb.com.
Our online customer acquisition spend has significantly
increased, with encouraging results. On the back of these
successful trials we will be further increasing our player
acquisition and marketing investment this year.
Our weekly car competition continues to benefit from numerous
incremental changes and continues to be well received by our
customers both online and at our retail locations.
Results
Revenue for the twelve months ended 30 April 2016 increased by
12.6 per cent to GBP10.10 million (2015: GBP8.97 million) and
profit before tax rose by 10.9 per cent to GBP1.06 million (2015:
GBP0.96 million).
The Company generated GBP1.68 million of operating cash flow in
the period. Net assets at 30 April 2016 stood at GBP1.59 million
(2015: GBP2.56 million) and principally comprise cash of GBP1.2
million, our stock of cars on display which are held at a net
realisable value of GBP0.32 million, and our 969 year leasehold
office properties valued at GBP0.95 million.
As previously announced, a 1.2p ordinary dividend was paid to
shareholders in October 2015 and a 19.5p special dividend amounting
to GBP1.97 million was paid on 18 March 2016.
Following a recent 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 overpaid VAT
amounting to GBP2.20 million (exclusive of professional fees and
expenses). 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. We will update
shareholders as this matter progresses.
Dividend
The Board is recommending a final dividend of 1.3p per share
(2015: 1.2p) for the full year ending 30 April 2016 subject to
shareholder approval at the Annual General Meeting on 21 September
2016. The final dividend will be paid on 14 October 2016 to
shareholders on the register on 23 September 2016.
Marketing Strategy, Business Development and New Player
Acquisition
The Company has a multi-channel approach to acquiring new
players. Channels are assessed and trialed through many different
marketing initiatives. Their relative efficiency is calculated
using the twelve-month Life Time Value (LTV) of a customer, against
the Cost Per Acquisition (CPA). Whilst the airport and shopping
centre sites, together with many of our more traditional online
channels are accurately trackable, we are now committing increased
levels of spend to less trackable brand marketing, such as TV and
radio to enable us to reach a larger audience.
The airport and shopping centre sites continue to be a key
channel to educate and introduce new players. These locations build
strong brand awareness, as well as providing a significant
opportunity for player acquisition. The Company is currently
operating from seven airport sites at Gatwick North, Gatwick South,
Birmingham, Manchester, Stansted, Edinburgh and Dublin; and one
site at the Westfield shopping centre in London's Shepherds Bush.
These locations have traded steadily throughout the year and
further pricing initiatives and staffing incentives have been
undertaken to ensure we are recruiting and converting as many new
players as possible from these sites.
Our Indian franchise, which is now trading under the BOTB brand
from Hyderabad airport, continues to trade well with a further site
in Delhi under negotiation. The royalty-based agreement allows them
to leverage our systems and software, as well as our marketing and
operating experience.
Our weekly competition continues to drive customer acquisition
as well as encouraging repeat play from existing database
customers. The weekly cycle also allows for the regular filming of
the "winner surprises", which create compelling marketing content
and have given us many PR opportunities which aid the conversion of
new players when visiting both the website and physical
locations.
Our current website at www.botb.com has been incrementally
improved throughout the year. Running in parallel, we have
undertaken a project to completely rebuild the website and
associated databases, systems and IT infrastructure. I am pleased
to report that this project is nearing completion with a new front
end design and back end architecture due to be released in the
third quarter of this year. This will have a fresh new look, will
be fully mobile responsive and will enable higher performance from
the servers and database. It has been designed with a renewed focus
on tiered loyalty, retention and community, to reward and entertain
our regular customers over the shortened competition lifecycle.
Social media marketing continues to be a powerful channel for
the business, both in terms of customer service and credibility,
but more importantly for player acquisition. Our Facebook page now
has 160,000 (2015: 120,000) active followers, contributing to the
circa 225,000 monthly unique visitors (2015: 165,000) to
www.botb.com. Activity on all social channels is expected to be
scaled up this year with increased marketing spend across the
spectrum.
We look forward to continued growth in player acquisition,
through our airport and shopping centre locations, through an
increased focus on various digital channels and through further
investments in TV and Radio.
Outlook
BOTB has increased revenues and profits, is cash generative and
is supported by a robust balance sheet. In the current financial
year, the Board will focus on executing an increased multi-channel
digital marketing plan, whilst ensuring that this strategy provides
an attractive return on investment.
I believe the business is well positioned for the remainder of
the financial year, and I look forward to updating shareholders on
further progress in due course.
William Hindmarch
Chief Executive
8 June 2016
BEST OF THE BEST PLC
Consolidated Income Statement
For The Year Ended 30(th) April 2016
_____________________________________________________________________________________________________
2016 2015
Notes GBP'000 GBP'000
(Restated)
CONTINUING OPERATIONS
Revenue 3 10,105 8,972
Cost of sales (3,969) (3,621)
-------------- --------------------
GROSS PROFIT 6,136 5,351
Administrative expenses (5,078) (4,398)
-------------- --------------------
OPERATING PROFIT 1,058 953
Finance income 2 2
-------------- --------------------
PROFIT BEFORE TAX 1,060 955
Tax 4 (126) (115)
-------------- --------------------
PROFIT FOR THE YEAR 934 840
============== ====================
Profit on earnings per share
expressed
in pence per share: 6
Basic 9.75 9.23
Diluted 9.70 8.55
BEST OF THE BEST PLC
Consolidated Statement of Financial Position
30(th) April 2016
_________________________________________________________________________________________________
2016 2015
Notes GBP'000 GBP'000
(Restated)
ASSETS
NON-CURRENT ASSETS
Intangible assets 267
Property, plant and equipment 1,181 1,053
Investments 70 70
Deferred tax 41 83
------- ----------
1,559 1,206
CURRENT ASSETS
Inventories 316 501
Trade and other receivables 169 685
Tax Receivables 4 8
Cash and cash equivalents 1,202 1,907
------- ----------
1,691 3,101
TOTAL ASSETS 3,250 4,307
======= ==========
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 7 506 455
Treasury shares 8 -
Share Premium 8 176 -
Capital redemption reserve 8 198 197
Share-based payment reserve 8 - 148
Retained earnings 8 711 1,763
------- ----------
TOTAL EQUITY 1,591 2,563
------- ----------
LIABILITIES
CURRENT LIABILITES
Trade and other payables 1,448 1,594
Tax payable 211 150
TOTAL LIABILITIES 1,659 1,744
======= ==========
TOTAL EQUITY AND LIABILITIES 3,250 4,307
======= ==========
BEST OF THE BEST PLC
Consolidated Statement of Changes in Equity
For The Year Ended 30(th) April 2016
Called Profit
up
share and loss Share
capital account premium
GBP'000 GBP'000 GBP'000
Balance at 1 May 2014 455 721 1,783
Changes in equity
Issue of share capital - - (1,783)
Dividends - (1,419) -
Total comprehensive income - 2,461 -
-------- --------- --------
Balance at 30 April 2015 455 1,763 -
-------- --------- --------
Changes in equity
Issue of share capital 51 - 176
Share Premium capital reduction - - -
Treasury share cancellation - - -
Dividends - (2,089) -
Total comprehensive income - 1,037 -
-------- --------- --------
Balance at 30 April 2016 506 711 176
======== ========= ========
Capital
redemption Other Treasury Total
reserve Reserves Shares equity
GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1st May
2014 197 148 (161) 3,142
Changes in equity
Issue of share capital - - - (1,783)
Dividends - - - (1,419)
Total comprehensive
income - - 161 2,623
----------- --------- --------- --------
Balance at 30th April
2015 197 148 - 2,563
----------- --------- --------- --------
Changes in equity
Issue of share capital - - - 227
Share Premium capital - - - -
reduction
Treasury share cancellation - - - -
Dividends - - - (2,089)
Total comprehensive
income 1 (148) - 890
----------- --------- --------- --------
Balance at 30th April
2016 198 - - 1,591
=========== ========= ========= ========
BEST OF THE BEST PLC
Consolidated Cash Flow Statement
For The Year Ended 30(th) April 2016
_____________________________________________________________________________________________________
2016 2015
Cash flows from operating GBP'000 GBP'000
activities
(Restated)
Cash generated from operations 1 1,675 1,323
Tax paid (19) (78)
-------------------------- -------------------------------
Net cash from operating
activities 1,656 1,245
Cash flows from investing
activities
Purchase of intangible fixed
assets (267)
Purchase of tangible fixed
assets (196) (95)
Purchase of fixed asset
investments - (70)
Sale of tangible fixed assets 6 -
Interest received 2 2
-------------------------- -------------------------------
Net cash from investing
activities (455) (163)
Cash flows from financing
activities
Equity dividends paid (2,089) (1,419)
Share buyback (45) -
Share issue 228
-------------------------- -------------------------------
Net cash from financing
activities (1,906) (1,419)
Decrease in cash and cash
equivalents (705) (337)
Cash and cash equivalents
at beginning of year 1,907 2,244
-------------------------- -------------------------------
Cash and cash equivalents
at end of year 1,202 1,907
========================== ===============================
BEST OF THE BEST PLC
Notes to the Consolidated Cash Flow Statement
For The Year Ended 30(th) April 2016
1. RECONCILIATION OF PROFIT BEFORE TAX TO CASH GENERATED
FROM OPERATIONS
2016 2015
GBP'000 GBP'000
(Restated)
Profit before tax 1,060 955
Depreciation charges 62 90
Effect of prior period adjustment - 272
Finance income (2) (2)
-------- -----------
1,120 1,315
(Increase)/decrease in inventories 186 25
(Increase)/decrease in trade and other
receivables 96 (379)
(Increase)/decrease in HMRC refund receivable 419 56
Increase/(decrease) in trade and other
payables (146) 306
-------- -----------
Cash generated from operations 1,675 1,323
======== ===========
BEST OF THE BEST PLC
Notes to the Preliminary Announcement
For The Year Ended 30(th) April 2016
1. BASIS OF PREPARATION
The financial information has been prepared in accordance with
the recognition and measurement requirements of International
Financial Reporting Standards as adopted by the EU (Adopted IFRS's)
and with those parts of the Companies Act 2006 applicable to
companies reporting under IFRS. The financial statements have been
recorded under the historical cost convention.
The financial information set out above does not constitute the
Group's statutory accounts for the years ended 30(th) April 2016.
The statutory accounts for 2016 will be delivered to the registrar
of companies in due course.
2. BASIS OF CONSOLIDATION
The consolidated financial statements incorporate the financial
statements of the Company and entities controlled by the Company
(its subsidiary undertakings). Where necessary, adjustments are
made to the financial statements of the subsidiaries to bring their
accounting policies in line with the Group. All intra-group
transactions, balances, income and expenses are eliminated on
consolidation.
3. ACCOUNTING POLICIES
The preliminary financial information has been prepared using
accounting policies set out in the Group's statutory accounts for
the year ended 30(th) April 2016.
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.
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.
4. TAX
Analysis of the tax charge
2016 2015
GBP'000 GBP'000
(Restated)
Current tax:
Tax 87 94
Overprovision in prior year (3) -
Deferred tax 42 21
Total tax charge in income statement
126 115
======== ===========
5. PRIOR PERIOD ADJUSTMENT
During December 2015, HMRC revised a decision in favour of the
company allowing VAT to be reclaimed on significant purchases
dating back to December 2010. The impact of this amendment has been
a net refund of GBP419,116. This has been reflected as an
adjustment of GBP419,116 to retained earnings as at 1(st) May 2015
and a corresponding receivable due within one year.
The year ended 30(th) April 2015 has been restated in the
financial statements to ensure comparability is maintained.
A corporation tax liability of GBP92,390 has occurred as a
result of this amendment which has been apportioned between the
previously mentioned periods to match the corporation tax liability
to the corresponding profit. The entire amount was refunded to the
company in the year to 30 April 2016.
6. PROFIT ON EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the earnings
attributable to ordinary shareholders by the weighted average
number of ordinary shares outstanding during the period.
Diluted earnings per share is calculated using the weighted
average number of shares adjusted to assume the conversion of all
dilutive potential ordinary shares. The Group has one category of
dilutive potential ordinary shares: share options. For the share
options a calculation is performed to determine the number of
shares that could have been acquired at fair value (determined as
the average annual market share price of the Group's shares) based
on the monetary value of the subscription rights attached to
outstanding share options. The number of shares calculated as above
is compared with the number of shares that would have been issued
assuming the exercise of the share options.
Reconciliations are set out below.
2016
Weighted
average
number Per-share
Earnings of amount
GBP'000 shares pence
Profit on basic EPS
Earnings attributable
to ordinary shareholders 934 9,583 9.75
Effect of dilutive securities
Options - 44 -
--------- ----------- ----------
Diluted EPS
Adjusted earnings 934 9,627 9.70
========= =========== ==========
2015
(Restated)
Weighted
Average
Number Per-share
Earnings Of amount
GBP'000 Shares pence
Profit on basic EPS
Earnings attributable
to ordinary shareholders 840 9,099 9.23
Effect of dilutive securities
Options - 728 -
--------- ----------- ----------
Diluted EPS
Adjusted earnings 840 9,827 8.55
========= =========== ==========
During the year 21,000 shares were returned
to the company and cancelled. Once cancelled
they were removed from the earnings per share
calculation.
The total number of options and warrants granted
at 30 April 2016 of 70,000 would generate GBP43,500
in cash if exercised. At 30 April 2016, 70,000
were priced above the mid-market closing price
of 182.2p per share. However the earliest these
options can be vested is August 2016.
7. CALLED UP SHARE CAPITAL
Allotted, issued and
fully paid:
2016 2015
Nominal GBP'000 GBP'000
Number: Class: value: (Restated)
10,114,580 Ordinary shares 5p 506 455
======== ===========
8. RESERVES
Capital
Retained Share redemption Other
Earnings Premium reserve reserves Totals
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 May 2015 1,763 - 197 148 2,108
Profit for
year 934 - - - 934
Dividends (2,089) - - - (2,089)
Treasury shares (45) - 1 - (44)
Option exercise 148 176 - (148) 176
At 30 April
2016 711 176 198 - 1,085
========= ======== =========== ========= ========
9. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
2016 2015
GBP'000 GBP'000
(Restated)
Profit for the financial year 934 840
Dividends (2,089) (1,419)
(1,155) (579)
Options exercised 228
Treasury shares repurchased (45)
Net reduction to shareholders' funds (972) (579)
Opening shareholders' funds 2,563 3,142
-------- -----------
Closing shareholders' funds 1,591 2,563
======== ===========
10. The annual report and accounts will be posted to
shareholders shortly and will be available for members of the
public at the Company's registered office, 2 Plato Place, St Dionis
Road, London, SW6 4TU and will be available on the Company's
website: www.botb.com.
11. The Annual General Meeting will be held on 21st September
2016 at the offices of Best of the Best Plc, 2 Plato Place, 72-74
St Dionis Road, London SW6 4TU.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SSDFWWFMSESM
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