TIDMBOTB
RNS Number : 8871P
Best of the Best PLC
15 June 2020
Best of the Best plc
("Best of the Best", "BOTB", "the Company" or "the Group")
Preliminary results for the year ended 30 April 2020
Best of the Best plc runs competitions online to win cars and
other prizes.
Move to online completed, delivering strong financial
performance with encouraging outlook
Financial Highlights:
-- Revenue increased by 20.1% to GBP17.79 million (2019: GBP14.81 million)
-- Profit before tax of GBP4.20 million (2019: GBP2.11 million
operating profit before exceptional items)
-- Now a fully digital business with 100% of revenue generated
online and no remaining physical locations, benefitting operating
margins and improving capital efficiency
-- Net assets of GBP3.30 million, substantially underpinned by property and cash
-- Cash balances of GBP5.21 million at 30 April 2020 and the Group has no borrowings
-- Earnings per share increased to 37.51p (2019: adjusted 17.62p)
-- Proposed 3.0p ordinary dividend to be paid on 2 October 2020 (2019: 2.0p)
-- Special Dividend of 20.0p to be paid on 10 July 2020
Operational Highlights:
-- Revenues are now entirely online, having completed the
strategic move away from the lower margin, capital intensive retail
estate comprising up to 26 locations
-- Competitions, pricing and marketing strategies are now
tailored exclusively for our growing and increasingly diversified
online customer base
-- Recent launch of a new Midweek competition, following the
celebration of 500th Dream Car winner and 100th Lifestyle winner
milestones
-- Accelerated growth in online marketing investment and player
acquisition, combined with increased competition frequency, has
delivered encouraging results in the period
-- Sales momentum since the period end has been encouraging and
ahead of management's original expectations. Continued marketing
activity is anticipated to drive revenue growth over the current
financial year and beyond
William Hindmarch, Chief Executive, said:
"I am pleased to announce strong revenue, profit growth and cash
generation as the business has completed its transformation to a
wholly online operation, away from its historic presence in
airports and retail sites. Our growth strategy is now exclusively
focused on driving digital sales, with our 'Dream Car' and
'Lifestyle' competitions recently joined by a new 'Midweek Car'
competition.
Our digital only model gives us more flexibility and focus, as
well as efficiency and cost savings, combined with ever increasing
confidence in our accelerating online marketing investment. This
has delivered strong results with both revenue and profit building
throughout the second half of the financial year, leading to strong
cash generation. Sales momentum since the period end has been
encouraging and ahead of management's original expectations, and we
look forward to updating shareholders with further progress in due
course."
Enquiries:
Best of the Best plc William Hindmarch, Chief T: 020 7371
Executive 8866
Rupert Garton, Commercial
Director
Buchanan Chris Lane T: 0207 466
(Public Relations & Toto Berger 5000
Press) Charlotte Slater
finnCap Corporate Finance T: 020 7220
(Nominated Adviser and Carl Holmes 0500
Broker) Kate Bannatyne
Teddy Whiley
Alice Lane
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation 596/2014.
Please visit www.botb.com for further information
CHIEF EXECUTIVE'S STATEMENT
Over the past few years the Company has actively reduced the
estate of physical sites upon which it was established 20 years
ago. Having previously traded from up to twenty-six airport and
shopping centre locations, the business has completed its evolution
and now operates entirely online. Our marketing activity is
exclusively focused on driving traffic, registrations and returning
loyal customers to our website, botb.com.
I am pleased with the smooth and controlled way in which this
transition has been executed, with no loss of overall revenue or
unwelcome exceptional costs. With the transformation complete, the
Company now has a very effective platform from which it can
continue to leverage its proprietary systems, software and the
extensive and valuable database it has built, whilst further
enhancing the products and experience it offers both new and
existing players.
The transformation to becoming a purely digital business has
been very successful, giving us more flexibility and focus. The
financial results for the year also clearly reflect the benefits of
this transition with increased operating margins, improved capital
efficiency and cost savings. Our competitions, pricing and product
strategy are also now tailored exclusively for our growing and
increasingly diversified online customer base, with our 'Dream Car'
and 'Lifestyle' competitions recently enhanced by a new 'Midweek
Car' competition.
During the year, BOTB's investment in online marketing and
customer acquisition continued to accelerate, delivering strong
results, profit growth and cash generation, with ongoing sales
momentum since the period end.
Preliminary Results
Revenue for the year ended 30 April 2020 increased by 20.1% to
GBP17.79 million (2019: GBP14.81 million) and profit before tax
rose to GBP4.20 million (2019: GBP2.11 million operating profit
before exceptional items), slightly ahead of management
expectations, with both revenue and profit building throughout the
second half of the financial year. Earnings per share increased to
37.51p (2019: adjusted 17.62p).
A total of GBP4.89 million of cash flow was generated from
operations during the period. Net assets at 30 April 2020 stood at
GBP3.30 million (2019: GBP1.28 million), underpinned by cash
balances of GBP5.21 million (2019: GBP2.54 million) and our
966-year leasehold office properties valued at GBP0.95 million. The
Group has no borrowings.
BEST OF THE BEST PLC
Preliminary Results (continued)
For the year ended 30 April 2020
Dividends
The Board is recommending a final dividend of 3.0p per share
(2019: 2.0p) for the full year ended 30 April 2020 subject to
shareholder approval at the Annual General Meeting on 16 September
2020. The final dividend will be paid on 2 October 2020 to
shareholders on the register on 18 September 2020.
As the Company continues to be profitable, cash generative and
benefits from a robust balance sheet, the Board is also pleased to
declare the return of approximately GBP1.88 million to shareholders
by way of a special dividend (the "Special Dividend") of 20.0p per
ordinary share.
The Special Dividend will be paid on 10 July 2020 to
shareholders on the register at the close of business on 26 June
2020. The ex-dividend date is 25 June 2020. Following the payment
of the Special Dividend the Company will retain working capital
cash balances in excess of GBP4.0 million, which the Directors
consider to be sufficient working capital to fund the Company's
activities over the next 12 month period.
Strategy, competitions, pricing
Since inception in 2000, BOTB leased physical sites in locations
such as airports and shopping centres to acquire new players,
service existing players and encourage customers to play online.
However, our costs and in particular rent and staff expenditure in
these retail locations continued to increase significantly
year-on-year, resulting in reduced efficiency when compared to
other available channels.
Through continued trials in previous years, the Company has
proved it can execute its marketing strategy more effectively using
predominantly digital media, complemented by traditional
advertising channels. The historical physically serviced airport
and retail customers were also disproportionately affecting our
pricing strategy and our ability to innovate online. A further
positive consequence of the move to becoming a purely online
operator has therefore been our ability to design our competitions,
pricing and innovations exclusively for the online player.
Both our 'Dream Car' and 'Lifestyle' competitions delivered
encouraging results during the period and we marked the exciting
milestones of celebrating both our 500th Dream Car and our 100th
Lifestyle winners.
BOTB's principal competition is the Weekly Dream Car, which
continued to perform well. It has benefited from the improvements
made to the overall user experience, including price points, choice
of cars and the 'Spot the Ball' mechanic, which has helped to drive
both revenues and customer engagement.
The Weekly Lifestyle Competition, which features luxury watches,
motorbikes, holidays, other gadgets/technology and cash prizes, has
also performed encouragingly. While there is a meaningful overlap
with players of our Dream Car competitions, the range of prizes in
the Lifestyle competition, with entry prices starting at just 15p,
has significantly broadened our addressable market.
We have recently added a third weekly 'Midweek Car' competition,
focusing on a slightly cheaper entry point with GBP1 to GBP2 ticket
prices and ending on a Wednesday night. This has been well received
by our customers and we will continue to improve on this and
explore other competition offerings.
The weekly 'In The Headlights' edits, significant amount of
in-house generated content on our YouTube and other social media
channels, together with our 'Supercharged' Loyalty Club provide
additional benefits and valuable engagement with regular
players.
With over 75% of new visits and 50% of revenue now coming via
mobile devices, there has been a deliberate strategy to keep the
core offering simple and focused to maximise conversion. This
approach is yielding results and BOTB has built a substantial and
valuable database of players, which not only supports its existing
competitions, but also offers interesting opportunities for new
products and partnerships.
Continued investment in IT development
The vast majority of our website visits and over half of our
revenue are now from mobile devices. As a result, we are becoming
increasingly 'mobile first' in our approach to IT development,
making incremental improvements to our platform and our user
experience by constantly updating the interface.
Our conversion rate on mobile devices, however, is still lower
than on desktop and we see an opportunity to increase revenues by
further improving the mobile interface. We have released major
changes to improve the mobile registration, playing and payment
experience, which in turn will assist both conversion and frequency
of play. Native iOS and Android apps are also in the final stages
of development and testing, to better capitalise on this shift to
mobile devices and to further optimise conversion.
BEST OF THE BEST PLC
Preliminary Results (continued)
For the year ended 30 April 2020
New player acquisition and CRM
As confidence in our approach has increased, we have accelerated
our marketing investment, particularly in the second half of the
year, resulting in encouraging returns on investment and lifetime
value metrics. Encouraging revenue growth has been delivered by an
enlarged, in-house marketing team through a wide range of digital
marketing channels, as well as TV, Radio, Print, PR and YouTube
Influencers, alongside new creative content that has achieved
increasingly efficient new customer acquisition.
Social media continues to be a core marketing channel, driving
both customer acquisition and brand awareness. Our Facebook page
now attracts over 290,000 followers with BOTB's YouTube channel at
over 40,000 subscribers, whilst Instagram followers exceed
150,000.
An increasing proportion of our marketing budget is directed at
Social Influencers who introduce customers and promote BOTB on
their various YouTube channels. We have also seen gains in the
efficiency of our TV advertising, as we test and optimise the
creative and messaging. This activity is complemented by
promotional campaigns executed on traditional media to maximise the
Company's exposure to a wide range of ages and demographics,
including our 'traditional' airport customer. Investment in print
and public relations has secured frequent coverage of weekly
winners and continues to positively promote the brand.
All marketing investment is strictly calibrated on the cost per
acquisition of a new customer, versus their predicted lifetime
value. This metric, which is tracked and analysed in considerable
detail across the various channels, is the primary determinant for
where and how we continue to grow our marketing budget in the year
ahead. A further focus in this financial year will be on maximising
customer retention and engagement and hence lifetime values. A new
hire has been made specifically to assist with this project,
including a full review of our customer retention initiatives.
Outlook
We are pleased that BOTB has delivered increased revenue and
profit ahead of our expectations. The cash generative model and
robust balance sheet presents an excellent platform for continued
future growth. The initiatives taken to reorientate our marketing
strategy toward an online-only model have proven successful, giving
us confidence for the new financial year which has started very
encouragingly.
We are confident that our streamlined, digital business is well
positioned to take advantage of future growth opportunities, and I
look forward to updating shareholders on our progress in due
course.
William Hindmarch
Chief Executive
15 June 2020
BEST OF THE BEST PLC
Preliminary Results (continued)
For the year ended 30 April 2020
KEY PERFORMANCE INDICATORS
The Directors have monitored the performance of the Company and
Group with particular reference to the following key performance
indicators:
1. Sales, both online and at retail sites, compared to the prior year.
2. Marketing efficiency calculated using the twelve-month
Lifetime Value per customer, against the Cost per Acquisition.
RISK MANAGEMENT
In order to execute the Company's strategy, the Company will be
exposed to both financial and non-financial risks. The Board has
overall responsibility for the Company's risk management, and it is
the Board's role to consider whether those risks identified by
management are acceptable within the Company's strategy and risk
appetite. The Board therefore regularly reviews the principal risks
and considers how effective and appropriate the controls that
management has in place to mitigate the risk exposure are and will
make recommendations to management accordingly.
Financial Risk Management
Credit risk
The exposure to credit risk is limited to the carrying amounts
of financial assets. There is considered to be little exposure to
credit risk arising on receivables due to the low value of
receivables held at the year-end. The credit risk arising on cash
balances is limited because the third parties are banks with high
credit ratings assigned by international credit rating
agencies.
Liquidity risk
Sufficient cash balances are maintained to ensure that there are
available funds for operations. Operations are financed principally
from equity and cash reserves.
Non-financial Risk Management
Interruption to website and associated IT infrastructure
As the Company and Group now operate wholly online, it is
heavily reliant on the effective operation of its website and
associated IT infrastructure. Any interruption to the website or IT
infrastructure would therefore have an immediate and significant
impact on the Company and Group.
The Company and Group have various processes and controls in
place to ensure the likelihood of interruption is minimised and, in
the unlikely event that the website or IT infrastructure failed, it
could be returned to operation in a short space of time. This
includes having contracts in place with third party suppliers to
ensure any potential source of interruption is identified promptly
and also to ensure that data, including customers' data, is
protected.
Management and key personnel
The success of the Company and the Group to a significant extent
is dependent on the Executive Directors and other senior managers.
To mitigate the risk of losing such personnel, the Company and
Group endeavour to ensure that they are fairly remunerated and well
incentivised.
Regulatory change
The Company and Group currently operate weekly skilled
competitions, which are not regulated. This could be subject to
change in the future and the Company and Group continue to seek
appropriate legal advice to ensure they comply with all relevant
legislation and licensing.
BEST OF THE BEST PLC
Preliminary Results (continued)
For the year ended 30 April 2020
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors are responsible for preparing the Annual Report
and the financial statements in accordance with applicable law and
regulations.
Company law requires the Directors to prepare financial
statements for each financial year. Under that law, the Directors
have elected to prepare the financial statements in accordance with
International Financial Reporting Standards as adopted by the
European Union ("IFRS"). Under company law, the Directors must not
approve the financial statements unless they are satisfied that
they give a true and fair view of the state of affairs of the
Company and the Group and of the profit or loss of the Group for
that period. In preparing these financial statements, the Directors
are required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- state that the financial statements comply with IFRS; and
- prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Company will
continue in business.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Company's and
the Group's transactions and disclose with reasonable accuracy at
any time the financial position of the Company and the Group and
enable them to ensure that the financial statements comply with the
Companies Act 2006. They are also responsible for safeguarding the
assets of the Company and the Group and hence for taking reasonable
steps for the prevention and detection of fraud and other
irregularities.
The Directors are responsible for the maintenance and integrity
of the corporate and financial information included on the
Company's website.
ON BEHALF OF THE BOARD
William Hindmarch
Chief Executive
15 June 2020
BEST OF THE BEST PLC
Consolidated Statement of Comprehensive Income
For the year ended 30 April 2020
Notes 2020 2019
GBP GBP
CONTINUING OPERATIONS
Revenue 17,788,588 14,806,972
Cost of sales (7,267,415) (6,541,790)
------------ ------------
GROSS PROFIT 10,521,173 8,265,182
Administrative expenses (6,328,043) (6,157,945)
------------ ------------
OPERATING PROFIT BEFORE EXCEPTIONAL
ITEMS 4,193,130 2,107,237
Exceptional income 6 - 4,597,926
Exceptional expense 6 - (2,023,500)
------------ ------------
OPERATING PROFIT 4,193,130 4,681,663
Finance income 8 11,487 17,902
------------ ------------
PROFIT BEFORE INCOME TAX 9 4,204,617 4,699,565
Income tax 10 (686,991) (858,411)
------------ ------------
PROFIT FOR THE YEAR 3,517,626 3,841,154
------------ ------------
OTHER COMPREHENSIVE INCOME
Items that may be reclassified
to profit or loss
Exchange differences on translating
foreign operations 213 (55)
OTHER COMPREHENSIVE INCOME FOR
THE
YEAR, NET OF INCOME TAX 213 (55)
------------ ------------
TOTAL COMPREHENSIVE INCOME FOR
THE
YEAR 3,517,839 3,841,099
Profit attributable to:
Owners of the parent 3,517.626 3,841,154
------------ ------------
Total comprehensive income attributable
to:
Owners of the parent 3,517,839 3,841,099
------------ ------------
Earnings per share expressed in
pence per share
Basic from continuing operations 12 37.51 38.54
Diluted from continuing operations 12 37.44 38.52
Adjusted basic from continuing
operations 12 37.51 17.62
Adjusted diluted from continuing
operations 12 37.44 17.61
------------ ------------
The notes form part of these financial statements
BEST OF THE BEST PLC
Consolidated Statement of Financial Position
As at 30 April 2020
Notes 2020 2019
GBP GBP
ASSETS
NON-CURRENT ASSETS
Intangible assets 14 80,924 9,200
Property, plant and equipment 15 1,086,396 1,117,368
Investments 16 - -
Deferred tax 21 3,215 12,578
---------- ----------
1,170,535 1,139,146
CURRENT ASSETS
Trade and other receivables 17 375,569 159,756
Cash and cash equivalents 18 5,210,426 2,544,636
---------- ----------
5,585,995 2,704,392
TOTAL ASSETS 6,756,530 3,843,538
---------- ----------
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 19 468,860 468,860
Share premium 199,324 199,324
Capital redemption reserve 236,517 236,517
Foreign exchange reserve 26,585 26,372
Retained earnings 2,368,907 351,641
---------- ----------
TOTAL EQUITY 3,300,193 1,282,714
---------- ----------
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 20 3,004,564 1,792,894
Tax payable 451,773 407,930
Provision 22 - 360,000
---------- ----------
TOTAL LIABILITIES 3,456,337 2,560,824
---------- ----------
TOTAL EQUITY AND LIABILITIES 6,756,530 3,843,538
---------- ----------
The financial statements were approved by the Board of Directors
on 15 June 2020 and were signed on its behalf by:
...................................
W S Hindmarch
Director
The notes form part of these financial statements
BEST OF THE BEST PLC
Company Statement of Financial Position
As at 30 April 2020
Notes 2020 2019
GBP GBP
ASSETS
NON-CURRENT ASSETS
Intangible assets 14 80,924 9,200
Property, plant and equipment 15 1,086,396 1,117,368
Investments 16 - -
Deferred tax 21 3,215 12,578
---------- ----------
1,170,535 1,139,146
CURRENT ASSETS
Trade and other receivables 17 375,569 159,756
Cash and cash equivalents 18 5,210,155 2,544,311
---------- ----------
5,585,724 2,704,067
TOTAL ASSETS 6,756,259 3,843,213
---------- ----------
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 19 468,860 468,860
Share premium 199,324 199,324
Capital redemption reserve 236,517 236,517
Retained earnings 2,389,773 372,240
---------- ----------
TOTAL EQUITY 3,294,474 1,276,941
---------- ----------
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 20 3,010,012 1,798,342
Tax payable 451,773 407,930
Provision 22 - 360,000
---------- ----------
TOTAL LIABILITIES 3,461,785 2,566,272
---------- ----------
TOTAL EQUITY AND LIABILITIES 6,756,259 3,843,213
---------- ----------
The profit attributable to shareholders dealt with in the
financial statements of the Company was GBP3,517,893 (2019:
GBP3,840,909).
The financial statements were approved by the Board of Directors
on 15 June 2020 and were signed on its behalf by:
...................................
W S Hindmarch
Director
The notes form part of these financial statements
BEST OF THE BEST PLC
Consolidated Statement of Changes in Equity
For the year ended 30 April 2020
Capital
Called Share redemption
up premium reserve
share
capital
GBP GBP GBP
Balance at 1 May 2018 504,926 199,324 200,451
---------- ---------- ------------
Issue of share capital
Dividends paid - - -
Share re-purchase (36,066) - 36,066
---------- ---------- ------------
Transactions with owners (36,066) - 36,066
---------- ---------- ------------
Profit for the year - - -
Other comprehensive income
Exchange differences arising
on translating
foreign operations - - -
Total comprehensive income - - -
---------- ---------- ------------
Balance at 30 April 2019 468,860 199,324 236,517
---------- ---------- ------------
Dividends paid - - -
Transactions with owners - - -
---------- ---------- ------------
Profit for the year - - -
Other comprehensive income
Exchange differences arising
on translating
foreign operations - - -
Total comprehensive income - - -
---------- ---------- ------------
Balance at 30 April 2020 468,860 199,324 236,517
---------- ---------- ------------
Foreign
exchange Retained
reserve earnings Total
GBP GBP GBP
Balance at 1 May 2018 26,427 614,838 1,545,966
------------------- ------------ ------------
Issue of share capital
Dividends paid - (605,915) (605,915)
Share re-purchase - (3,498,436) (3,498,436)
Transactions with owners - (4,104,351) (4,104,351)
------------------- ------------ ------------
Profit for the year - 3,841,154 3,841,154
Other comprehensive income
Exchange differences arising
on translating
foreign operations (55) - (55)
------------------- ------------ ------------
Total comprehensive income (55) 3,841,154 3,841,099
------------------- ------------ ------------
Balance at 30 April 2019 26,372 351,641 1,282,714
------------------- ------------ ------------
Dividends paid - (1,500,360) (1,500,360)
Transactions with owners - (1,500,360) (1,500,360)
------------------- ------------ ------------
Profit for the year - 3,517,626 3,517,626
Other comprehensive income
Exchange differences arising
on translating
foreign operations 213 - 213
Total comprehensive income 213 3,517,626 3,517,839
------------------- ------------ ------------
Balance at 30 April 2020 26,585 2,368,907 3,300,193
------------------- ------------ ------------
The notes form part of these financial statements
BEST OF THE BEST PLC
Company Statement of Changes in Equity
For the year ended 30 April 2020
Capital
Called Share redemption
up premium reserve
share
capital
GBP GBP GBP
Balance at 1 May 2018 504,926 199,324 200,451
---------- --------------- -------------------
Issue of share capital - - -
Dividends paid - - -
Share re-purchase (36,066) - 36,066
Transactions with owners (36,066) - 36,066
---------- --------------- -------------------
Profit for the year - - -
Total comprehensive income - - -
---------- --------------- -------------------
Balance at 30 April 2019 468,860 199,324 236,517
---------- --------------- -------------------
Dividends paid - - -
Transactions with owners - - -
---------- --------------- -------------------
Profit for the year - - -
Total comprehensive income - - -
---------- --------------- -------------------
Balance at 30 April 2020 468,860 199,324 236,517
---------- --------------- -------------------
Retained
earnings Total
GBP GBP
Balance at 1 May 2018 635,682 1,540,383
------------ ------------
Issue of share capital - -
Dividends paid (605,915) (605,915)
Share re-purchase (3,498,436) (3,498,436)
Transactions with owners (4,104,351) (4,104,351)
------------ ------------
Profit for the year 3,840,909 3,840,909
Total comprehensive income 3,840,909 3,840,909
------------ ------------
Balance at 30 April 2019 372,240 1,276,941
------------ ------------
Dividends paid (1,500,360) (1,500,360)
Transactions with owners (1,500,360) (1,500,360)
------------ ------------
Profit for the year 3,517,893 3,517,893
Total comprehensive income 3,517,893 3,517,893
------------ ------------
Balance at 30 April 2020 2,389,773 3,294,474
------------ ------------
The notes form part of these financial statements
BEST OF THE BEST PLC
Consolidated Statement of Cash Flows
For the year ended 30 April 2020
Notes 2020 2019
GBP GBP
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations 28 4,891,690 4,763,838
Tax paid (643,149) (525,846)
------------ ------------
Net cash from operating activities 4,248,541 4,237,992
============ ============
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of intangible assets (76,324) (9,200)
Purchase of property, plant and
equipment (17,554) (128,550)
Sales of property, plant and
equipment - 208,770
Interest received 11,487 17,902
------------ ------------
Net cash from investing activities (82,391) 88,922
============ ============
CASH FLOWS FROM FINANCING ACTIVITIES
Share re-purchase - (3,498,436)
Equity dividends paid (1,500,360) (605,915)
------------ ------------
Net cash from financing activities (1,500,360) (4,104,351)
============ ============
Increase in cash and cash equivalents 2,665,790 222,563
------------ ------------
Cash and cash equivalents at
beginning of year 2,544,636 2,322,073
------------ ------------
Cash and cash equivalents at
end of year 18 5,210,426 2,544,636
============ ============
The notes form part of these financial statements
BEST OF THE BEST PLC
Company Statement of Cash Flows
For the year ended 30 April 2020
Notes 2020 2019
GBP GBP
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations 28 4,891,744 4,770,306
Tax paid (643,149) (526,554)
------------ ------------
Net cash from operating activities 4,248,595 4,243,752
============ ============
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of intangible assets (76,324) (9,200)
Purchase of property, plant and
equipment (17,554) (128,550)
Sales of property, plant and
equipment - 208,770
Interest received 11,487 17,902
------------ ------------
Net cash from investing activities (82,391) 88,922
============ ============
CASH FLOWS FROM FINANCING ACTIVITIES
Share re-purchase - (3,498,436)
Equity dividends paid (1,500,360) (605,915)
------------ ------------
Net cash from financing activities (1,500,360) (4,104,351)
============ ============
Increase in cash and cash equivalents 2,665,844 228,323
------------ ------------
Cash and cash equivalents at
beginning of year 2,544,311 2,315,988
------------ ------------
Cash and cash equivalents at
end of year 18 5,210,155 2,544,311
============ ============
The notes form part of these financial statements
BEST OF THE BEST PLC
Notes to the Preliminary Announcement
For the year ended 30 April 2020
1. GENERAL INFORMATION
The principal activity of the Company and the Group is to
operate weekly competitions to win luxury cars and other prizes
online.
These financial statements have been prepared in accordance with
International Financial Reporting Standards ("IFRS") and
International Financial Reporting Interpretation Committee
("IFRIC") Interpretations as issued by the International Accounting
Standards Board and adopted by the European Union and in accordance
with those parts of the Companies Act 2006 applicable to those
companies reporting under IFRS. The financial statements have been
prepared under the historical cost convention.
The principal accounting policies adopted in the preparation of
the financial statements are set out below. The policies have been
consistently applied to all years presented, unless otherwise
stated.
The financial statements are presented in Pounds Sterling. All
amounts, unless otherwise stated, have been rounded to the nearest
Pound.
The preparation of financial statements in compliance with
adopted IFRS requires the use of certain critical accounting
estimates. It also requires management to exercise judgement in
applying those accounting policies. The areas where significant
judgements and estimates have been made in preparing these
financial statements and their effect are disclosed in Note 4.
The Directors are satisfied that the Company and Group have
adequate resources to continue in business for the foreseeable
future. For this reason, they continue to adopt the going concern
basis in preparing the financial statements.
2. PRINCIPAL ACCOUNTING POLICIES
2.1 NEW STANDARDS, AMMENTS AND INTERPRETATIONS
The Company and Group applied for the first time certain
Standards, Amendments and Interpretations which are effective for
annual periods commencing on or after 1 May 2019. The Company and
Group have not early adopted any other Standards, Amendments or
Interpretations that have been issued but are not yet
effective.
IFRS 16 'Leases' was issued by the IASB in January 2017 and is
effective for accounting periods beginning on or after 1 January
2019. The new standard has replaced IAS 17 'Leases' and eliminates
the classification of leases as either operating leases or finance
leases and, instead, introduce a single lessee accounting model.
The standard, which has been endorsed by the EU, provides a single
lessee accounting model, specifying how leases are recognised,
measured, presented and disclosed.
The following standards have been issued but not applied:
-- Amendments to References to Conceptual Framework in IFRS
Standards. The Amendments effective date 1 January 2020.
-- Amendments to IFRS 3 Business Combinations addresses the
definition of a Business combination, to help companies determine
whether an acquisition is of a business or a group of assets. The
Amendments are effective 1 January 2020.
-- Amendments to IAS 1 and IAS 8 addresses definition of
material in the context of applying IFRS. The concept of what is
and is not material is crucial in preparing financial statements, a
change in the definition may fundamentally affect how preparers
make judgements in preparing financial statements. The Amendments
effective date 1 January 2020.
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For the year ended 30 April 2020
2. PRINCIPAL ACCOUNTING POLICIES (continued)
2.2 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 those of the Group. All
intra-Group transactions, balances, income and expenses are
eliminated on consolidation.
2.3 REVENUE RECOGNITION
The Company and Group operate weekly competitions to win luxury
cars and other prizes online. Revenue represents the value of
tickets sold in respect of these competitions and is stated net of
VAT, where applicable, and returns, rebates and discounts. Revenue
in respect of weekly competitions is recognised on the date the
result of those individual competitions is determined, being the
point when all performance obligations have been fulfilled.
2.4 COST OF SALES
Cost of sales comprises principally of the cost of competition
prizes, duties, rent and the associated costs of operating retail
sites.
2.5 EXCEPTIONAL ITEMS
Exceptional items are those items the Company and Group consider
to be non-recurring or material in nature that may distort an
understanding of financial performance or impair comparability.
2.6 SEGMENT REPORTING
The accounting policy for identifying segments is based on
internal management reporting information which is reviewed by the
chief operating decision maker. The Company and Group are
considered to have a single business segment, being the operation
of weekly competitions to win luxury cars and other prizes.
2.7 RESEARCH AND DEVELOPMENT EXPITURE
Expenditure on research is recognised as an expense in the
period in which it is incurred.
Development costs are capitalised when all of the following
conditions are satisfied:
-- Completion of the intangible asset is technically feasible so
that it will be available for use or sale;
-- The Company or Group intends to complete the intangible asset and use or sell it;
-- The Company or Group has the ability to use or sell the intangible asset;
-- The intangible asset will generate probable future economic
benefits. Amongst other things, this requires that there is a
market for the output from the intangible asset or for the
intangible asset itself, or, if it is to be used internally, the
asset will be used in generating such benefits;
-- There are adequate technical, financial and other resources
to complete the development and to use or sell the intangible
asset; and
-- The expenditure attributable to the intangible asset during
its development can be measured reliably.
Development costs not meeting the criteria for capitalisation
are expensed as incurred.
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For the year ended 30 April 2020
2. PRINCIPAL ACCOUNTING POLICIES (continued)
2.8 FOREIGN CURRENCIES
Assets and liabilities in foreign currencies are translated into
Sterling at the rates of exchange ruling at the statement of
financial position date. Transactions in foreign currencies are
translated into Sterling at the rates of exchange ruling at the
date of the transaction. Exchange differences are taken into
account in arriving at the operating result.
The assets and liabilities in the financial statements of
foreign subsidiaries are translated into the Parent Company's
presentation currency at the rates of exchange ruling at the
statement of financial position date. Income and expenses are
translated at the actual rate on the date of the transaction. The
exchange differences arising from the retranslation of the opening
net investment in subsidiaries are recognised in other
comprehensive income and taken to the foreign exchange reserve in
equity. On disposal of a foreign subsidiary, the cumulative
translation differences are transferred to profit or loss as part
of the gain or loss on disposal.
2.9 SHARE BASED PAYMENT
The Company and Group have applied the requirements of IFRS 2 to
share option schemes allowing certain employees within the Group 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 option 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 actual 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.
2.10 PENSION CONTRIBUTIONS AND OTHER POST EMPLOYMENT BENEFITS
The Company operates a money purchase pension scheme for certain
employees. The cost of the contributions is charged to the
statement of comprehensive income as incurred.
2.11 TAXATION
Current taxes are based on the results shown in the financial
statements and are calculated according to local tax rules, using
tax rates enacted or substantively enacted by the statement of
financial position date.
The tax currently payable is based on the taxable profit for the
year. Taxable profit/(loss) differs from the net profit/(loss)
reported in the statement of comprehensive income as it excludes
items of income or expense that are taxable or deductible in other
years and it further excludes items that are never taxable or
deductible.
Deferred tax is the tax expected to be payable or recoverable on
differences between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax bases used in
the computation of taxable profit and is accounted for using the
balance sheet liability method. Deferred tax liabilities are
generally recognised for all taxable temporary differences and
deferred tax assets are recognised to the extent that it is
probable that taxable profits will be available against which the
deductible temporary differences can be utilised. Such assets and
liabilities are not recognised if the temporary differences arise
from the initial recognition (other than in a business combination)
of other assets or liabilities in a transaction that affects
neither the tax profit nor the accounting profit.
The carrying amount of the deferred tax asset is reviewed at
each statement of financial position date and reduced to the extent
that it is no longer probable that sufficient taxable profits will
be available to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to
apply in the period when the liability is settled, or the asset is
realised. Deferred tax is charged or credited in the statement of
comprehensive income, except when it relates to items charged or
credited directly to equity, in which case deferred tax is also
dealt with in equity.
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For the year ended 30 April 2020
2. PRINCIPAL ACCOUNTING POLICIES (continued)
2.12 IMPAIRMENT
The carrying amounts of the Company's and the Group's assets are
reviewed at each statement of financial position date to determine
whether there is any indication of impairment. If any such
indicator exists, the asset's recoverable amount is estimated.
An impairment loss is recognised whenever the carrying amount of
an asset exceeds its recoverable amount. Impairment losses are
recognised in the statement of comprehensive income.
The recoverable amount of an asset is the greater of its net
selling price and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value
using a pre-tax discount rate that reflects the current market
assessments of the time value of money and the risks specific to
the asset.
An impairment loss is reversed if there has been a change in the
estimates used to determine the recoverable amount. An impairment
loss is reversed only to the extent that the asset's carrying
amount does not exceed the carrying amount that would have been
determined, net of depreciation and amortisation, if no impairment
loss had been recognised.
2.13 CURRENT VERSUS NON-CURRENT CLASSIFICATION
The Company and Group present assets and liabilities in the
statement of financial position based on current/non-current
classification. An asset is current when it is:
-- expected to be realised or intended to be sold or consumed in
the normal operating cycle; or
-- held primarily for the purpose of trading; or
-- expected to be realised within twelve months after the reporting period; or
-- cash or cash equivalents unless restricted from being
exchanged or used to settle a liability for at least twelve months
after the reporting date.
All other assets are classified as non-current.
A liability is current when:
-- it is expected to be settled in the normal operating cycle; or
-- it is held primarily for the purpose of trading; or
-- it is due to be settled within twelve months after the reporting period; or
-- there is no unconditional right to defer the settlement of
the liability for at least twelve months after the reporting
date.
The Company and Group classify all other liabilities as
non-current.
Deferred tax assets and liabilities are classified as
non-current assets and liabilities.
2.14 INTANGIBLE ASSETS
Intangible assets are recognised at cost less any accumulated
amortisation and impairment.
An intangible asset, which is an identifiable non-monetary asset
without physical substance, is recognised to the extent that it is
probable that the expected future economic benefits attributable to
the asset will flow to the Company or Group and that its cost can
be measured reliably. The asset is deemed to be identifiable when
it is separate or when it arises from contractual or other legal
rights.
The Company's and Group's intangible assets consist of its IT
platform, infrastructure and website. The Directors have estimated
the useful economic life of the assets to be three years and they
are being amortised over that period on a straight line basis.
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For the year ended 30 April 2020
2. PRINCIPAL ACCOUNTING POLICIES (continued)
2.15 PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment is stated at cost, net of
accumulated depreciation and accumulated impairment losses, if
any.
Depreciation is provided at the following annual rates in order
to write off each asset over its useful economic life:
Long leasehold property - 1% on cost
Improvements to property - 4% on cost
Display equipment - At varying rates on cost
Fixtures and fittings - At varying rates on cost
Motor vehicles - 25% on reducing balance
Computer equipment - At varying rates on cost
An item of property, plant and equipment is derecognised upon
disposal or when no future economic benefits are expected from the
use or disposal. Any gain or loss arising on de-recognition of the
asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in the
statement of comprehensive income when the asset is
derecognised.
The residual values, useful economic lives and methods of
depreciation are reviewed at each financial year end and adjusted
prospectively, if appropriate.
2.16 INVESTMENTS
Investments in subsidiaries are recorded at cost less any
provision for permanent diminution in value.
2.17 LEASES
The Company and Group has applied IFRS 16 using the modified
retrospective approach resulting in a nil impact on opening equity
and comparative amounts have not been restated.
The cost of leases of low value items and those with a term of
less than one year at inception are recognised as incurred.
2.18 PROVISIONS
Provisions are liabilities where the exact timing or amount of
the obligation is uncertain. Provisions are recognised when the
Company or Group has a present obligation (legal or constructive)
as a result of a past event, it is probable that an outflow of
resources embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of the amount of
the obligation. Where the time value of money is material,
provisions are discounted to current values using appropriate rates
of interest. The unwinding of the discounts is recorded in net
finance income or expense.
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For the year ended 30 April 2020
2. PRINCIPAL ACCOUNTING POLICIES (continued)
2.19 FINANCIAL INSTRUMENTS
Financial assets and liabilities are recognised in the Company's
and Group's statement of financial position when the Company and
Group becomes a party to the contractual provisions of the
instrument. The Company's and Group's financial instruments
comprise cash, trade and other receivables and trade and other
payables.
Trade and other receivables
Trade and other receivables are initially stated at their fair
value plus transaction costs, then subsequently at amortised cost
using the effective interest method, if applicable, less impairment
losses. Provisions against trade and other receivables are made
when there is objective evidence that the Company and Group will
not be able to collect all amounts due to them in accordance with
the original terms of those receivables. The amount of the write
down is determined as the difference between the asset's carrying
amount and the present value of estimated future cash flows.
Cash and cash equivalents
The Company and Group manage short-term liquidity through the
holding of cash and highly liquid interest-bearing deposits. Only
deposits that are readily convertible into cash with maturities of
three months or less from inception, with no penalty of lost
interest, are shown as cash and cash equivalents.
Trade payables
Financial liabilities are obligations to pay cash or other
financial assets and are recognised when the Company and Group
becomes a party to the contractual provisions of the instrument.
All financial liabilities are recorded at amortised cost using the
effective interest method, with interest-related charges recognised
as an expense in finance cost in the statement of comprehensive
income.
2.20 EQUITY
Equity comprises the following:
-- Called up share capital represents the nominal value of the equity shares;
-- Share premium represents the excess over nominal value of the
fair value of consideration received from the equity shares, net of
expenses of the share issue;
-- Capital redemption reserve represents the value of the
re-purchase by the Company of its own share capital;
-- Foreign exchange reserve represents accumulated exchange
differences from the translation of subsidiaries with a functional
currency other than Sterling; and
-- Retained earnings represent accumulated profits and losses
from incorporation and any credit arising under share-based
payments
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For the year ended 30 April 2020
3. CAPITAL MANAGEMENT
The Company defines capital as the total equity of the Company.
The objective of the Company's capital management is to ensure that
it makes the maximum use of its capital to support its business and
to maximise shareholder value. There are no external constraints on
the Company's capital.
4. CRITICAL JUDGEMENTS AND ACCOUNTING ESTIMATES
The Company and Group make certain estimates and assumptions
regarding the future. Estimates and judgements are continually
evaluated based on historical experience and other factors,
including expectations of future events that are believed to be
reasonable under the circumstances. In the future, actual
expenditure may differ from these estimates and assumptions. The
estimates and assumptions that have a significant risk of causing a
material adjustment to the carrying amounts of assets and
liabilities within the next financial year are discussed below.
Impairment of assets
The Company and Group are required to consider assets for
impairment where such indicators exist, using value in use
calculations or fair value estimates. The use of these methods may
require the estimation of future cash flows and the choice of a
discount rate in order to calculate the present value of the cash
flows. Actual outcomes may vary.
Useful lives of property, plant and equipment and intangible
assets
Property, plant and equipment are depreciated, and intangible
assets are amortised over their useful lives. Useful lives are
based on management's estimates, which are periodically reviewed
for continued appropriateness. Changes to estimates can result in
variations in the carrying values and amounts charged to the
statement of comprehensive income in specific periods.
5. SEGMENTAL REPORTING
For management purposes, the Company and Group are considered to
have one single business segment, being the operation of weekly
competitions to win luxury cars and other prizes. The Group
comprises Best of the Best PLC and its subsidiary company BOTB
Ireland Limited. BOTB Ireland Limited generated no sales during
either the current or prior year and it holds few assets and is
expected to have very little trading activity going forward. The
two companies do not transact with each other. Further segment
information is therefore not presented in these financial
statements.
Sales from UK activities totalled GBP14,940,207 (2019:
GBP12,098,896) whilst sales from non-UK activities totalled
GBP2,848,381 (2019: GBP2,708,076) ) and included GBP73,030 (2019:
GBPnil) of ticket sales brought forward from the previous year.
6. EXCEPTIONAL INCOME AND EXPENSE
On 19 May 2018, the Company received a retrospective VAT refund
from H M Revenue and Customs ("HMRC") on it "Spot the Ball" game of
GBP4,494,697 for the period from 1 March 2009 to 30 June 2017.
Accordingly, this sum, as well as an associated interest receipt,
has been recognised as exceptional income in the previous financial
year. On 20 December 2019, the Company settled an agreed assessment
issued by HMRC for Remote Gaming Duty, making a payment of
GBP1,758,875. Accordingly, this sum has been recognised as an
exceptional expense in the previous financial year, together with
associated legal and professional costs of GBP264,625 incurred in
connection with these claims. There was no exception income or
expense in the financial year ended 30 April 2020.
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For the year ended 30 April 2020
7. EMPLOYEES AND DIRECTORS
Group Company
2020 2019 2020 2019
GBP GBP GBP GBP
Wages and salaries 1,748,296 1,772,484 1,748,296 1,772,484
Social security costs 223,766 218,326 223,766 218,326
Other pension costs 34,820 62,892 34,820 62,892
---------- ---------- ---------- ----------
2,006,882 2,053,702 2,006,882 2,053,702
========== ========== ========== ==========
The average monthly number of employees during the year,
including the Directors, was as follows:
Group Company
2020 2019 2020 2019
Number Number Number Number
Sales 1 10 1 10
Administration 17 16 17 16
Management 3 3 3 3
------- ------- ------- -------
21 29 21 29
======= ======= ======= =======
2020 2019
GBP GBP
Directors' remuneration 525,105 528,717
======== ========
The number of Directors to whom retirement benefits were
accruing was as follows:
2020 2019
Number Number
Money purchase schemes 2 2
======= =======
The Directors consider themselves to be the only key management
personnel. As such, a separate analysis of remuneration paid to key
management personnel has not been presented.
Information regarding the highest paid Director is as
follows:
2020 2019
GBP GBP
Emoluments 263,339 250,967
======== ========
8. FINANCE INCOME
2020 2019
GBP GBP
Finance income:
Deposit account interest 11,487 17,902
------- -------
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For the year ended 30 April 2020
9. PROFIT BEFORE INCOME TAX
The profit before income tax is stated after
charging/(crediting):
2020 2019
GBP GBP
Depreciation and impairment of property, plant
and equipment 48,528 80,174
Amortisation of intangible assets 4,600 127,316
Profit on disposal of property, plant and
equipment - (132,932)
Foreign exchange losses 2,202 -
Auditor's remuneration
Audit fees 34,500 33,500
Taxation services 2,250 2,631
Other 23,427 22,500
------- ----------
10. INCOME TAX
Analysis of tax expense
2020 2019
GBP GBP
Current tax:
Current year charge 686,135 830,544
Prior year over provision (8,507) -
-------- --------
Total current tax 677,628 830,544
======== ========
Deferred tax
Origination and reversal of temporary timing
differences 9,363 27,867
-------- --------
Total deferred tax 9,363 27,867
======== ========
Total tax charge for the year 686,991 858,411
======== ========
Factors affecting the tax expense
The tax assessed for the year is lower than the standard rate of
corporation tax in the UK. The difference is explained below:
2020 2019
GBP GBP
Profit on ordinary activities before income
tax 4,204,617 4,699,565
========== ==========
Profit on ordinary activities multiplied by
the standard rate of corporation
tax in the UK of 19% (2019: 19%) 798,877 892,917
Effects of:
Depreciation in excess of capital allowances (3,781) 38,222
Other timing differences (483) 1,074
Non-deductible expenses 761 5,018
Research and development enhanced deduction (99,876) (78,820)
Over provision in prior year (8,507) -
Tax expense 686,991 858,411
========== ==========
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For the year ended 30 April 2020
11. PROFIT OF THE PARENT COMPANY
As permitted by Section 408 of the Companies Act 2006, the
income statement of the Parent Company is not presented as part of
these financial statements. The parent Company's profit for the
financial year was GBP3,517,893 (2019: GBP3,840,909).
12. 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.
Adjusted earnings per share is calculated by dividing the
earnings attributable to the ordinary shareholders, before
exceptional income and exceptional expense and associated
corporation tax, by the weighted average number of ordinary shares
outstanding during the year.
Diluted and adjusted 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.
2020 2019
Profit for the year and basic and diluted
earnings attributable to the
owners of the parent - GBP 3,517,626 3,841,154
------------ ------------
Adjusted profit for the year and basic and
diluted earnings attributable to the
owners of the parent - GBP 3,517,626 1,755,869
------------ ------------
Weighted average number of ordinary shares
- number 9,377,253 9,965,495
Basic earnings per share - pence 37.51p 38.54p
Adjusted basic earnings per share - pence 37.51p 17.62p
------------ ------------
Adjusted weighted average number of ordinary
shares - number 9,394,296 9,971,206
Diluted earnings per share - pence 37.44p 38.52p
Adjusted diluted earnings per share - pence 37.44p 17.61p
============ ============
13. DIVIDS
The Company paid a final dividend of 2.0 pence per share on 27
September 2019, as recommended in the financial statements to 30
April 2019. Furthermore, a Special Dividend of 14.0pence per share
was paid on 21 February 2020 to shareholders on the register at the
close of business on 6 February 2020.
The Board is recommending a final dividend of 3.0pence per share
(2019: 2.0pence per share) for the full year ending 30 April 2020
subject to shareholder approval at the Annual General Meeting on 16
September 2020. The final dividend will be paid on 02 October 2020
to shareholders on the register on 18 September 2020.
14. INTANGIBLE ASSETS - GROUP AND COMPANY
Development
costs
GBP
COST
At 1 May 2019 314,650
Additions 76,324
------------
At 30 April 2020 390,974
------------
AMORTISATION
At 1 May 2019 305,450
Charge for year 4,600
------------
At 30 April 2020 310,050
------------
NET BOOK VALUE
2020 80,924
------------
2019 9,200
============
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For the year ended 30 April 2020
14. INTANGIBLE ASSETS - GROUP AND COMPANY (continued)
Development
costs
GBP
COST
At 1 May 2018 305,450
Additions 9,200
------------
At 30 April 2019 314,650
------------
AMORTISATION
At 1 May 2018 178,134
Charge for year 127,316
------------
At 30 April 2019 305,450
------------
NET BOOK VALUE
2019 9,200
------------
2018 127,316
============
15. PROPERTY, PLANT AND EQUIPMENT - GROUP AND COMPANY
Long Improvements Display Fixtures
leasehold to property equipment and fittings
GBP GBP GBP GBP
COST
At 1 May 2019 954,034 25,950 102,664 172,329
Additions - - - -
Disposals - - - (172,329)
----------- ------------- ----------- --------------
At 30 April 2020 954,034 25,950 102,664 -
=========== ============= =========== ==============
DEPRECIATION AND IMPAIRMENT
At 1 May 2019 10,498 3,168 76,893 172,329
Charge for the year 3,624 1,038 - -
Eliminated on disposals - - - (172,329)
----------- ------------- ----------- --------------
At 30 April 2020 14,122 4,206 76,893
=========== ============= =========== ==============
NET BOOK VALUE
2020 939,912 21,744 25,771 -
=========== ============= =========== ==============
2019 943,536 22,782 25,771 -
=========== ============= =========== ==============
Motor Computer
vehicles equipment Total
GBP GBP GBP
COST
At 1 May 2019 155,371 128,995 1,539,343
Additions - 17,556 17,556
Disposals - - (172,329)
---------- ----------- ----------
At 30 April 2020 155,371 146,551 1,384,570
========== =========== ==========
DEPRECIATION AND IMPAIRMENT
At 1 May 2019 42,771 116,316 421,975
Charge for the year 28,150 15,716 48,528
Eliminated on disposals - - (172,329)
---------- ----------- ----------
At 30 April 2020 70,921 132,032 298,174
========== =========== ==========
NET BOOK VALUE
2020 84,450 14,519 1,086,396
========== =========== ==========
2019 112,600 12,679 1,117,368
========== =========== ==========
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For the year ended 30 April 2020
15. PROPERTY, PLANT AND EQUIPMENT - GROUP AND COMPANY
(continued)
Long Improvements Display Fixtures
leasehold to property equipment and fittings
GBP GBP GBP GBP
COST
At 1 May 2018 954,034 25,950 473,591 170,219
Additions - - - 2,110
Disposals - - (370,927) -
----------- ------------- ----------- --------------
At 30 April 2019 954,034 25,950 102,664 172,329
=========== ============= =========== ==============
DEPRECIATION AND IMPAIRMENT
At 1 May 2017 6,998 2,078 342,970 160,717
Charge for the year 3,500 1,090 31,106 11,612
Eliminated on disposals - - (297,183) -
----------- ------------- ----------- --------------
At 30 April 2019 10,498 3,168 76,893 172,329
=========== ============= =========== ==============
NET BOOK VALUE
2019 943,536 22,782 25,771 -
=========== ============= =========== ==============
2018 947,036 23,872 130,621 9,502
=========== ============= =========== ==============
Motor Computer
vehicles equipment Total
GBP GBP GBP
COST
At 1 May 2018 58,275 115,137 1,797,206
Additions 112,582 13,858 128,550
Disposals (15,486) - (386,413)
---------- ----------- ----------
At 30 April 2019 155,371 128,995 1,539,343
========== =========== ==========
DEPRECIATION AND IMPAIRMENT
At 1 May 2018 35,078 104,535 652,376
Charge for the year 21,085 11,781 80,174
Eliminated on disposals (13,392) - (310,575)
---------- ----------- ----------
At 30 April 2019 42,771 116,316 421,975
========== =========== ==========
NET BOOK VALUE
2019 112,600 12,679 1,117,368
========== =========== ==========
2018 23,197 10,602 1,144,830
========== =========== ==========
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For the year ended 30 April 2020
16. INVESTMENTS
Group
Unlisted
investments
GBP
COST
At 1 May 2019 and 30 April 2020 70,000
-------------
IMPAIRMENT
At 1 May 2019 and 30 April 2020 70,000
NET BOOK VALUE
At 1 May 2019 and 30 April 2020 -
=============
Unlisted investments relate to the cost of acquiring options in
another company.
Company
Shares
in group Unlisted
undertakings investments Total
GBP GBP GBP
COST
At 1 May 2019 and 30 April 2020 85 70,000 70,085
============== ============== ========
IMPAIRMENT
At 1 May 2019 and 30 April 2020 85 70,000 70,085
============== ============== ========
NET BOOK VALUE
At 1 May 2019 and 30 April - - -
2020
============== ============== ========
Shares in Group undertakings comprise of the following
subsidiary company:
Name of company Nature of business % holding Country of incorporation
BOTB Ireland Competition 100 Republic of Ireland
Limited operator
BOTB Ireland Limited registered office is Suite 3 One Earlsfort
Centre, Lower Hatch Street, Dublin 2, Ireland
17. TRADE AND OTHER RECEIVABLES - GROUP AND COMPANY
Group Company
2020 2019 2020 2019
GBP GBP GBP GBP
Trade receivables 1,832 765 1,832 765
Other receivables 308,507 32,560 308,507 32,560
Prepayments and accrued income 65,230 126,431 65,230 126,431
-------- -------- -------- --------
375,569 159,756 375,569 159,756
======== ======== ======== ========
The fair value of trade and other receivables approximates to
their carrying values.
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For the year ended 30 April 2020
18. CASH AND CASH EQUIVALENTS - GROUP AND COMPANY
Group Company
2020 2019 2020 2019
GBP GBP GBP GBP
Bank accounts 5,209,613 2,543,094 5,209,342 2,542,770
Cash in hand 813 1,542 813 1,541
---------- ---------- ---------- ----------
5,210,426 2,544,636 5,210,155 2,544,311
========== ========== ========== ==========
19. CALLED UP SHARE CAPITAL - COMPANY
Allotted, issued and fully 2020 2019 2020 2019
paid
Ordinary shares of 5 pence Number Number GBP GBP
each
At the start of the year 9,377,253 10,098,580 468,860 504,926
Shares allotted during the - - - -
year
Purchased for cancellation
in the year - (721,327) - (36,066)
---------- ----------- -------- ---------
At the end of the year 9,377,253 9,377,253 468,860 468,860
========== =========== ======== =========
No shares were allotted during the year.
20. TRADE AND OTHER PAYABLES - GROUP AND COMPANY
Group Company
2020 2019 2020 2019
GBP GBP GBP GBP
Trade creditors 164,822 343,186 164,822 343,186
Amounts owed to Group undertakings - - 5,448 5,448
Social security and other
taxes 902,280 392,533 902,280 392,533
Other creditors 1,493,080 978,262 1,493,080 978,262
Contract liability balances 441,039 73,030 441,039 73,030
Pension creditor 3,343 5,883 3,343 5,883
---------- ---------- ---------- ----------
3,004,564 1,792,894 3,010,012 1,798,342
========== ========== ========== ==========
21. DEFERRED TAX - GROUP AND COMPANY
Group Company
2020 2019 2020 2019
GBP GBP GBP GBP
Asset at 1 May 12,578 40,445 12,578 40,445
Movement in the year (9,363) (27,867) (9,363) (27,867)
-------- --------- -------- ---------
Asset at 30 April 3,215 12,578 3,215 12,578
======== ========= ======== =========
Deferred tax assets have been recognised in respect of
accelerated capital allowances giving rise to deferred tax assets
where the Directors believe that it is probable that these assets
will be recovered.
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For the year ended 30 April 2020
22. PROVISIONS - GROUP AND COMPANY
Group Company
2020 2019 2020 2019
GBP GBP GBP GBP
At 1 May 360,000 206,550 360,000 206,550
Utilised during the year (172,135) (151,050) (360,000) (151,050)
Released during the year (187,865) - (187,865) -
Additions - 304,500 - 304,500
Asset at 30 April - 360,000 - 360,000
========== ========== ========== ==========
The onerous retail site lease was exited in the year and the
costs of early termination, including related closure costs, have
been utilised against the brought forward provision.
The balance has been released to the Consolidated Statement of
Comprehensive Income.
23. SHARE BASED PAYMENT - GROUP AND COMPANY
Details of the share options outstanding during the year are as
follows:
Outstanding Outstanding
Grant date at 1 May Granted Exercised Forfeited at 30 April Expiry Exercise
2019 2020 date price
19-12-2017 45,000 - - - 45,000 19-12-2027 GBP2.25
28-02-2020 - 85,000 - - 85,000 28-02-2030 GBP3.85
The Company and Group operate a share option scheme for certain
Directors and employees. Options are exercisable at a price defined
by the individual option agreements. The vesting period on each
option is three years. If the options remain unexercised during the
specified period from the date of grant, the options expire.
Options are generally forfeited if the employee leaves the Group
before the options vest, however, this is at the discretion of the
Board.
Details of the share options and the weighted average exercise
price ('WAEP') outstanding during the year are as follows:
2020 2020 2019 2019
Number WAEP Number WAEP
Outstanding at the beginning
of year 45,000 225.00 45,000 225.00
Granted during the year 85,000 385.00 - -
Exercised during the - - - -
year
Lapsed during the year - - - -
-------- ------- ------- -------
Outstanding at the end
of the year 130,000 330.00 45,000 225.00
-------- ------- ------- -------
Exercisable at the end - - - -
of the year
======== ======= ======= =======
The weighted average remaining contractual life of share options
outstanding as at 30 April 2020 was 9 years and 1 month (2019: 8
years and 8 months).
No amount has been recognised in these financial statements in
respect of share option charges as the amount would be
insignificant (2019: GBPNil).
24. LEASES - GROUP AND COMPANY
The amounts recognised in the Consolidated Statement of
Comprehensive Income was as follows:
Group Company
2020 2019 2020 2019
GBP GBP GBP GBP
Expenses related to
short term leases 13,635 218,443 13,635 218,443
During the year the retail site lease was exited. This has been
treated as a short-term lease and expensed
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For the year ended 30 April 2020
25. LEASES - GROUP AND COMPANY (continued)
.
The amount recognised in the Consolidated and Company Statement
of Cash Flows was as follows:
Group Company
2020 2019 2020 2019
GBP GBP GBP GBP
Cash flows from operating
activities 13,635 218,443 13,635 218,443
26. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS - GROUP
AND COMPANY
The principal financial assets of the Group are bank balances.
The Group's principal financial liabilities are trade and other
payables. The main purpose of these financial instruments is to
generate sufficient working capital for the Group to continue its
operations.
Credit risk
The Group's exposure to credit risk is limited to the carrying
amounts of financial assets recognised at the statement of
financial position date, as summarised below. Management considers
that the Group is exposed to little credit risk arising on its
receivables due to the value of those receivables. The credit risk
on cash balances is limited because the third parties are banks
with high credit ratings assigned by international credit rating
agencies.
2020 2019
GBP GBP
Financial assets classified
as loans and receivables -
carrying amounts:
Trade receivables 288,484 765
Other receivables 21,855 32,560
Cash and cash equivalents 5,210,426 2,544,636
---------- ----------
5,520,765 2,577,961
========== ==========
Liquidity risk
The Group's funding strategy is to generate sufficient working
capital to settle liabilities as they fall due and to ensure
sufficient financial resource is in place to support management's
long-term growth plans.
The Group's financial liabilities have contractual maturities as
follows:
2020 2019
GBP GBP GBP GBP
Financial liabilities measured Up to After Up to After
at amortised cost - carrying 1 year 1 year 1 year 1 year
amounts
Trade and other payables 2,563,525 - 1,719,864 -
---------- -------- ---------- --------
2,563,525 - 1,719,864 -
========== ======== ========== ========
27. 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 year ended 30
April 2020, payments were made to him totaling GBP17,000 (2019:
GBP12,000) in respect of consultancy services provided. The total
amount due to M W Hindmarch at 30 April 2020 was GBP1,500 (2019:
GBP1,000).
28. ULTIMATE CONTROLLING PARTY
The Company is under the ultimate control of W S Hindmarch, the
Chief Executive Director of the Company, by virtue of his
controlling shareholding at the statement of financial position
date.
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For the year ended 30 April 2020
29. RECONCILIATION OF PROFIT BEFORE INCOME TAX TO CASH GENERATED
FROM OPERATIONS
Group Company
2020 2019 2020 2019
GBP GBP GBP GBP
Profit before income tax 4,204,617 4,699,565 4,204,884 4,699,320
Depreciation charges 48,526 80,174 48,526 80,174
Amortisation charges 4,600 127,316 4,600 127,316
Profit on disposal of property,
plant and equipment - (132,932) - (132,932)
Investment impairment charge - - - -
Exchange differences 213 (55) - -
Finance income (11,487) (17,902) (11,487) (17,902)
---------- ---------- ---------- ----------
4,246,469 4,756,166 4,246,523 4,755,976
(Increase) / decrease in trade
and other receivables (215,813) (9,633) (215,813) (10,023)
(Decrease) / increase in trade
and other payables 1,211,671 (136,145) 1,211,671 (129,097)
Increase in provision (350,637) 153,450 (350,637) 153,450
---------- ---------- ---------- ----------
Cash generated from operations 4,891,690 4,763,838 4,891,744 4,770,306
========== ========== ========== ==========
30. SUBSEQUENT EVENTS
The impact of the COVID-19 pandemic is a non-adjusting event as
at 30 April 2020 for the purposes of these financial statements.
The outbreak has developed rapidly in 2020 and has caused
disruption to business, economic activities and impacted global
markets.
The safety of our team and customers is and remains of paramount
importance and our operations are continuing with remote working
arrangements and 'virtual' notification and delivery of competition
prizes.
Management continues to monitor the potential implications of
the COVID-19 pandemic, however, to date, it has not had any
material negative impact on the business, its operations or its
financial performance.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR SFDFMLESSEIM
(END) Dow Jones Newswires
June 15, 2020 02:00 ET (06:00 GMT)
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