TIDMBOTB
RNS Number : 3915D
Best of the Best PLC
31 January 2018
Best of the Best plc
("Best of the Best", "BOTB", "the Company" or "the Group")
Interim results for the six months ended 31 October 2017
Best of the Best runs competitions to win cars both online and
at retail locations
Key Highlights for the six months
-- Revenue of GBP5.54 million (2016: GBP5.52 million)
-- Profit before tax increased to GBP0.95 million (2016: GBP0.92 million)
-- Net assets of GBP1.83 million (2016: GBP2.22 million)
underpinned by GBP3.0 million of cash and property
-- Cash balances of GBP2.05 million (2016: GBP2.28 million) with no debt
-- Online revenues increased by 6.8% to GBP4.44 million (2016: GBP4.16 million)
-- Online revenues represented 82.0% (2016: 75.4%) of total revenue in the period
-- Earnings per share of 7.67 pence (2016: 7.5 pence)
-- Special dividend of 7.5 pence per share (GBP0.74 million) to
be paid on 23 February 2018
-- Growing investment in online marketing to increase player
acquisition, with encouraging numbers of new customers
William Hindmarch, Chief Executive, said:
"I am pleased to announce a solid set of interim results versus
a strong performance in the comparable period last year.
Our marketing investment has continued to grow, leading to a
healthy growth in online sales which now represent 82% of all
revenues.
We are attracting encouraging numbers of new customers through a
considered marketing program encompassing airport sites, all forms
of digital marketing, TV and radio.
The business is well placed for future growth and is trading in
line with management expectations. 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
finnCap Carl Holmes - Corporate T: 0207 220
Finance 0500
Anthony Adams - Corporate
Finance
Andrew Burdis - Corporate
Broking
KTZ Communications Katie Tzouliadis T: 020 3178
6378
Please visit www.botb.com for further information.
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014.
Chief Executive's Statement
We have continued to grow our investment in all forms of
marketing which has helped drive revenues and increase awareness of
the BOTB brand and the Dream Car competition. It is our intention
to gradually accelerate the rate of this investment to build on
these results.
Results
Revenue for the six months ended 31 October 2017 was GBP5.54
million (2016: GBP5.52 million) and profit before tax rose to
GBP0.95 million (2016: GBP0.92 million). The Company generated
GBP0.69 million of operating cash flow. Net assets at 31 October
2017 stood at GBP1.83 million (2016: GBP2.22 million), underpinned
by cash balances of GBP2.05 million (2016: GBP2.28 million) and our
967 year leasehold office properties valued at GBP0.95 million.
Current cash balances stand at approximately GBP2.6 million.
As previously announced, BOTB noted the VAT decision given by
the Supreme Court in favour of Sportech PLC on 8 December 2016,
where the Supreme Court refused Her Majesty's Revenue & Customs
("HMRC") permission to appeal the Court of Appeal's unanimous
decision regarding its VAT repayment claim on the "Spot the Ball"
game. This resulted in a successful VAT reclaim by Sportech (the
"Sportech Claim").
The Company submitted a protective claim in 2013 to recover
overpaid VAT, and following the Supreme Court decision and after
taking further specialist legal and tax advice, BOTB submitted a
top-up claim. Combined with the original claim, the Company has now
submitted claims totalling GBP4.5m (exclusive of professional fees,
expenses and tax) to HMRC to recover VAT paid over an eight year
period on its own "Spot the Ball" game, and is awaiting a response
from HMRC. It is not certain that the Company will receive any
repayment from HM Revenue & Customs, but we will update
shareholders as this matter progresses.
Dividends
A special dividend of 6.5 pence per share was paid to
shareholders on 30 June 2017 and a dividend in respect of the full
year ended 30 April 2017 of 1.4 pence per share was paid to
shareholders on 22 September 2017. As in prior years, the Directors
expect to propose a final dividend for the financial year ending 30
April 2018, subject to the Company's trading performance, and to
maintain a progressive dividend policy.
As the Company continues to be profitable, cash generative and
benefits from a robust balance sheet the Company is also pleased to
declare the return of approximately GBP0.75m to shareholders by way
of a Special Dividend (the "Special Dividend") of 7.5 pence per
ordinary share. Following the payment of the Special Dividend the
Company will retain cash balances in excess of GBP1.5m which the
Directors consider to be sufficient working capital to fund its
activities over the next 12 month period. The Special Dividend will
be paid on 23 February 2018 to shareholders on the register at the
close of business on 9 February 2018. The Ex-dividend date is 8
February 2018.
Pricing
During the period and subsequently we have made significant
changes to our pricing model. It has been our ambition, as we move
to an almost exclusively online business, to reduce ticket prices
and to widen our addressable market.
Prices have been reduced by over 50%, driven by a desire to
reduce the high perceived cost of tickets. Our previous targeted
weekly sales were restricting customer choice, so the new prices
both assist player acquisition and make the aspirational cars that
existing players really want to win much more accessible. The
effect of these pricing changes has been encouraging, further
facilitating our marketing efforts and increasing revenues from
both new and existing customers. At the same time, we have improved
the cash alternatives offered in lieu of taking the car as a prize
and made their availability much more prominent.
The overall results have been positive, and with prize costs
having increased a little as expected, we have been working on a
number of initiatives to maintain margins going forward.
New Competitions
As well as our weekly Dream Car competition, we have recently
launched a new weekly competition to win cash prizes of GBP5,000
and GBP10,000 for as little as 25 pence. This remains at a trial
stage but we will be further experimenting by extending
competitions into other popular categories such as watches and
motorbikes. We anticipate that this will broaden the offering to
our existing customers, as well as provide differing products
through which to acquire new customers.
New Player Acquisition
Whilst a smaller part of the business, we continue to trade from
six airport sites at Gatwick North & South, Manchester,
Birmingham, Edinburgh and Dublin, and from one shopping centre site
at Westfield London. The physical sites continue to contribute to
wider brand and product awareness, although they have become
increasingly profit neutral as a channel for customer acquisition.
We will continue to carefully assess the relative efficiency and
profitability of our physical channels, on a site by site
basis.
Our online marketing investment to acquire new players continues
to increase. We now have 210,000 Facebook followers, 46,000
Instagram followers and 20,000 YouTube subscribers. We have also
recently launched BOTB TV, our weekly roundup of car and winner
related news which is distributed on YouTube. All of these
initiatives, combined with the use of social media influencers, TV
and radio advertising have led to an extension in the BOTB
community, growth in brand recognition and increased awareness of
our competitions.
Whilst carefully monitoring the cost of acquiring new players
through the many digital and physical channels which we employ, and
analysing the returns throughout the customer lifetime, we continue
to experience encouraging metrics for new player growth, increased
site visits and ultimately in online revenues.
Outlook
We hope to build on the solid start to the financial year and
continue the momentum into the second half. Trading remains in line
with management expectations for the full year and I look forward
to updating shareholders on further progress in due course.
William Hindmarch
Chief Executive
31 January 2018
BEST OF THE BEST PLC
Unaudited Consolidated Income Statement
For the Period Ended 31 October 2017
___________________________________________________________________________________________________
Six Months Six Months
Ended Ended Year Ended
31/10/17 31/10/16 30/04/17
Unaudited Unaudited Audited
Notes GBP'000 GBP'000 GBP'000
Revenue 3 5,541 5,519 10,812
Cost of sales (1,838) (1,874) (3,864)
-------------- -------------- -----------------
GROSS PROFIT 3,703 3,645 6,948
Administrative expenses (2,758) (2,722) (5,436)
-------------- -------------- -----------------
OPERATING PROFIT 945 923 1,512
Finance income - 1 1
-------------- -------------- -----------------
PROFIT BEFORE TAX 945 924 1,513
Tax (169) (165) (118)
-------------- -------------- -----------------
PROFIT FOR THE PERIOD 776 759 1,395
============== ============== =================
OTHER COMPREHENSIVE INCOME
Items that may be reclassified
to profit or loss
Exchange differences on
translating foreign operations (16) - 25
-------------- -------------- -----------------
OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME
TAX 760 759 1,420
-------------- -------------- -----------------
Profit attributable to:
Owners of the parent 776 759 1,395
-------------- -------------- -----------------
Total comprehensive income
attributable to:
Owners of the parent 760 759 1,420
-------------- -------------- -----------------
Profit on earnings per
share expressed
in pence per share: 4
Basic from continuing
operations 7.67 7.50 13.78
Diluted from continuing
operations 7.65 7.47 13.74
BEST OF THE BEST PLC
Unaudited Consolidated Statement of Financial Position
31 October 2017
_________________________________________________________________________________________________
Six Months Six Months
Ended Ended Year Ended
31/10/17 31/10/16 30/04/17
Unaudited Unaudited Audited
Notes GBP'000 GBP'000 GBP'000
ASSETS
NON-CURRENT ASSETS
Development costs 145 376 178
Property, plant and equipment 1,244 1,433 1,357
Investments 70 70 70
Deferred tax 21 53 37
---------- ---------- ------------
1,480 1,932 1,642
CURRENT ASSETS
Trade and other receivables 265 191 245
Tax receivables - 5 -
Cash and cash equivalents 2,045 2,277 2,106
---------- ---------- ------------
2,310 2,473 2,351
TOTAL ASSETS 3,790 4,405 3,993
========== ========== ============
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 506 506 506
Share premium 179 179 179
Capital redemption reserve 198 198 198
Foreign exchange reserve 6 - 25
Retained earnings 938 1,338 962
---------- ---------- ------------
TOTAL EQUITY 1,827 2,221 1,870
========== ========== ============
LIABILITIES
CURRENT LIABILITES
Trade and other payables 1,578 1,842 1,718
Tax payable 365 342 275
Provisions 20 - 130
---------- ---------- ------------
TOTAL LIABILITIES 1,963 2,184 2,123
========== ========== ============
TOTAL EQUITY AND LIABILITIES 3,790 4,405 3,993
========== ========== ============
BEST OF THE BEST PLC
Unaudited Consolidated Statement of Changes in Equity
For the Period Ended 31 October 2017
Called
up
share Retained Share
capital earnings premium
GBP'000 GBP'000 GBP'000
Balance at 1 May 2016 505 711 176
----------- --------- ----------
Issue of share capital 1 - 3
Dividends - (1,144) -
----------- --------- ----------
Transactions with owners 1 (1,144) 3
----------- --------- ----------
Profit for the year - 1,395 -
Other comprehensive income:
Exchange differences on translating - - -
foreign operations
----------- --------- ----------
Total comprehensive income - 1,395 -
----------- --------- ----------
Balance at 30 April 2017 506 962 179
----------- --------- ----------
Issue of share capital - - -
Dividends - (800) -
----------- --------- ----------
Transactions with owners - (800) -
----------- --------- ----------
Profit for the period - 776 -
Other comprehensive income:
Exchange differences on translating - - -
foreign operations
----------- --------- ----------
Total comprehensive income - 776 -
----------- --------- ----------
Balance at 31 October 2017 506 938 179
=========== ========= ==========
Capital Foreign
redemption exchange Total
reserve reserves equity
GBP'000 GBP'000 GBP'000
Balance at 1 May 2016 198 - 1,590
----------- ------------- ------------
Issue of share capital - - 4
Dividends - - (1,144)
----------- ------------- ------------
Transactions with owners - - (1,140)
----------- ------------- ------------
Profit for the year - - 1,395
Other comprehensive income:
Exchange differences on translating
foreign operations - 25 25
----------- ------------- ------------
Total comprehensive income - 25 1,420
----------- ------------- ------------
Balance at 30 April 2017 198 25 1,870
----------- ------------- ------------
Issue of share capital - - -
Dividends - - (800)
----------- ------------- ------------
Transactions with owners - - (800)
----------- ------------- ------------
Profit for the period - - 776
Other comprehensive income:
Exchange differences on translating
foreign operations - (19) (19)
----------- ------------- ------------
Total comprehensive income - (19) 757
----------- ------------- ------------
Balance at 31 October 2017 198 6 1,827
=========== ============= ============
BEST OF THE BEST PLC
Unaudited Consolidated Statement of Changes in Equity
For the Period Ended 31 October 2017
Called
up
share Retained Share
capital earnings premium
GBP'000 GBP'000 GBP'000
Balance at 1 May 2016 505 711 176
Issue of share capital 1 - 3
Dividends - (132) -
----------- --------- --------
Transactions with owners 1 (132) 3
----------- --------- --------
Profit for the period - 759 -
Total comprehensive income - 759 -
----------- --------- --------
Balance at 31 October 2016 506 1,338 179
=========== ========= ========
Capital
redemption Total
reserve Equity
GBP'000 GBP'000
Balance at 1 May 2016 198 1,590
Issue of share capital - 4
Dividends - (132)
----------- -------------
Transactions with owners - (128)
----------- -------------
Profit for the period - 759
Total comprehensive income - 759
----------- -------------
Balance at 31 October 2016 198 2,221
=========== =============
BEST OF THE BEST PLC
Unaudited Consolidated Cash Flow Statement
For the Period Ended 31 October 2017
________________________________________________________________________________________________
Six Months Six Months
Ended Ended Year
31/10/17 31/10/16 Ended
Unaudited Unaudited 30/04/17
Audited
Cash flows from operating Notes GBP'000 GBP'000 GBP'000
activities
Cash generated from operations 6 749 1,384 2,178
Tax paid (63) (47) (46)
--------------- -------------- --------------
Net cash from operating
activities 686 1,337 2,132
Cash flows from investing
activities
Purchase of intangible fixed
assets (12) (109) -
Purchase of tangible fixed
assets (11) (37) (132)
Sale of tangible fixed assets 76 12 43
Interest received - 1 1
--------------- -------------- --------------
Net cash from investing
activities 53 (133) (88)
Cash flows from financing
activities
Share issue - 3 4
Equity dividends paid (800) (132) (1,144)
Net cash from financing
activities (800) (129) (1,140)
(Decrease) / increase in
cash and cash equivalents (61) 1,075 904
Cash and cash equivalents
at beginning of period 2,106 1,202 1,202
--------------- -------------- --------------
Cash and cash equivalents
at end of period 2,045 2,277 2,106
=============== ============== ==============
BEST OF THE BEST PLC
Notes to the Interim Financial Statements
For the Year Ended 31 October 2017
1. BASIS OF PREPARATION
These condensed interim financial statements are for the six
months ended 31 October 2017. 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 2017.
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 2017.
2. STATEMENT OF FINANCIAL POSITION RECLASSIFICATION
The Group noted in its annual financial statements to 30 April
2017 that motor vehicles on display at retail sites were previously
classified as inventory on the basis that customers had the
opportunity to win these vehicles and they were therefore
considered to form part of the inventory of competition prizes.
Competitions have changed in recent years and given the increased
choice, it has become much less common for the vehicles on display
to actually be taken by customers as prizes. The Directors
therefore concluded that such vehicles ought to be classified as
display items and as a category of plant and equipment and this
accounting treatment was used in the annual financial statements to
30 April 2017.
The net amount reclassified from inventories to plant and
equipment at 31 October 2016 being GBP279,000.
3. 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.
4. EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the earnings
attributable to the ordinary shareholders by the weighted average
number of ordinary shares outstanding during the year.
Diluted earnings per share is calculated using the weighted
average number of shares outstanding during the year, adjusted to
assume the exercise of all dilutive potential ordinary shares under
the company's share option plans.
Six Six
Months Months Year
Ended Ended Ended
31/10/17 31/10/16 30/04/17
Unaudited Unaudited Audited
Profit and basic and diluted
earnings attributable to GBP776,346 GBP758,893 GBP1,394,731
the owners of the parent
Weighted average number
of ordinary shares 10,121,247 10,117,678 10,121,247
Basic earnings per share 7.67p 7.50p 13.78p
Adjusted weighted average
number of ordinary shares 10,145,127 10,155,915 10,151,247
Diluted earnings per share 7.65p 7.47p 13.74p
5. DIVIDENDS
A final dividend, based on the results for the year ended 30
April 2017 of 1.4p per share was paid on 22 September 2017 (30
April 2016: 1.3p).
A Special Dividend of 7.5 pence per ordinary share will be paid
on 23 February 2018 to shareholders on the register at the close of
business on 9 February 2018. The Ex-dividend date is 8 February
2018.
6. CASH GENERATED FROM OPERATIONS
Six Months Six Months
Ended Ended Year
31/10/17 31/10/16 Ended
Unaudited Unaudited 30/04/17
Audited
GBP'000 GBP'000 GBP'000
Profit before income
tax 945 924 1,513
Depreciation and amortisation
charges 123 92 317
Profit on disposal of
fixed assets (30) (3) -
Finance income - (1) (1)
(Increase) in trade
and other receivables (20) (22) (76)
(Decrease) / increase
in trade and other payables (140) 394 270
(Decrease) / increase
in provisions (110) - 130
Exchange differences (19) - 25
----------- ----------- -----------
749 1,384 2,178
----------- ----------- -----------
7. RELATED PARTY DISCLOSURES
M W Hindmarch is considered to be a related party as he is a
Non-Executive Director of the Company. During the six months ended
31 October 2017, payments were made to him totalling GBP6,000
(GBP6,000 for the six months ended 31 October 2016) in respect of
consultancy services provided.
8. ULTIMATE CONTROLLING PARTY
The ultimate controlling party at the end of this interim period
was W S Hindmarch, the Chief Executive Officer of the Company, who
owns 50.4% of the issued share capital at the balance sheet
date.
9. 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 2017.
The statutory accounts for the financial year ended 30 April
2017 were prepared under IFRS as adopted by the EU. These accounts,
upon which the auditor issued an unqualified opinion, did not
include references to any matters to which the auditor 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.
This interim statement will be made available at the Company's
registered office at 2 Plato Place, 72-74 St. Dionis Road, London
SW6 4TU and will be available on the Company's website:
www.botb.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BLGDBLUXBGIG
(END) Dow Jones Newswires
January 31, 2018 02:00 ET (07:00 GMT)
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