TIDMBOTB
RNS Number : 0154C
Best of the Best PLC
16 June 2021
Best of the Best plc
("Best of the Best", "BOTB", "the Company" or "the Group")
Preliminary results for the year ended 30 April 2021
Best of the Best plc runs competitions online to win cars and
other prizes.
100% of revenues derived from online operations, delivering a
very strong financial performance
Financial Highlights:
-- Revenue increased to GBP45.68 million (2020: GBP17.79 million)
-- Profit before tax of GBP14.06 million (2020: GBP4.19 million)
-- Earnings per share increased to 122.52p (2020: 37.51p)
-- Net assets of GBP8.96 million, substantially underpinned by property and cash
-- Cash balances of GBP11.8 million at 30 April 2021 - the Group is debt free
-- Proposed 5.0p Final Dividend to be paid on 1 October 2021 (2020: 3.0p)
-- Special Dividend of 50.0p to be paid on 16 July 2021
Operational Highlights: --
-- Move to digital only model significantly improved capital
efficiency following the strategic move away from lower margin,
capital intensive retail estate comprising up to 26 locations
-- Successful continuation of the Midweek competition
-- Significant year-on-year growth in online marketing
investment and player acquisition, combined with increased
competition frequency, delivered very strong results in the
period
-- Strategic options review concluded with ongoing focus on existing strategy
William Hindmarch, Chief Executive, said:
"In what has been an unprecedented and extremely challenging
year for so many individuals personally, as well as many
businesses, the Company was fortunate to have made the strategic
decision some time ago to exit its predominantly airport-based
retail estate and to concentrate on a pure online strategy.
As a result, I am pleased to announce strong revenue, profit
growth and cash generation as the business continued to benefit
from its transformation to a wholly online operation, combined with
material increases in marketing investment and our broader product
offering. Our growth strategy remains focused on driving digital
sales, with our 'Dream Car' and 'Lifestyle' competitions joined by
the 'Midweek Car' competition, now fully supported by native iOS
and Android apps. Our digital only model gives us flexibility and
focus, as well as capital efficiency and cost savings, combined
with the potential to further increase online marketing
investment.
We are excited about the opportunities that the year ahead holds
for BOTB, with a recovering economy and hopefully a return to
normality. However, in contrast to the summer 2020 period, we have
experienced somewhat of a reduction in customer engagement since
the latest easing of lockdown restrictions on April 12, 2021,
specifically relating to the understandably long-awaited re-opening
of hospitality and non-essential retail. We are closely monitoring
this, but with our flexible model, growth strategy and plans for
the year ahead, we expect customer engagement to return to normal
levels before too long. I look forward to updating shareholders in
due course."
BEST OF THE BEST PLC
Preliminary Results (continued)
For The Year Ended 30 April 2021
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
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the company's obligations under Article 17 of MAR. Please visit
www.botb.com for further information
CHIEF EXECUTIVE'S STATEMENT
Having made the strategic decision to exit our predominantly
airport-based retail estate and concentrate on a pure online
strategy, we have been able to tailor our business, product and
pricing specifically to a much more scalable, online only
proposition. The exit from our final physical site in September
2019 was, with the benefit of hindsight, opportune given the
restrictions on travel that have been in place due to the pandemic.
Our online only strategy to significantly increase year on year
growth in online marketing investment and player acquisition,
combined with additional competition frequency, delivered a
materially enhanced top line performance, strong profitability and
cash generation.
As a purely online business, we are now completely focused on
enhancing the products and experience we offer to both new and
existing players by leveraging our proprietary systems, software
and the extensive and valuable database that we have created over
many years. We now have our best ever product proposition following
the investments we have made to enhance prize values and reduce
ticket prices. These initiatives have enabled us to retain existing
players and acquire new ones. It is this focus and continued
engagement with our customers that has driven our strong
performance during the period.
The financial results for the year clearly reflect the benefits
of our online only focus, with increased operating margins,
improved capital efficiency and cost savings, enabling investment
in new competitions, additional headcount, IT and app
development.
During the year we also launched a strategic review and explored
early-stage discussions with a number of interested parties in an
orderly fashion. The "formal sale process" mechanism was adopted in
order to facilitate these discussions with certain regulatory
dispensations under the Takeover Code. Following extensive talks
with a range of parties, the Board concluded that it was is in
shareholders' best interests to focus on the continuing growth of
the business under its existing strategy as a publicly quoted
business. This pure online strategy, with a focus on cash
generation, has enabled a policy of consistent shareholder returns
and we are confident will continue to do so.
BEST OF THE BEST PLC
Preliminary Results (continued)
For The Year Ended 30 April 2021
Final Results
This financial year was the first year that 100% of revenue has
been derived from online operations and the positive effect of this
transition can be clearly seen in our strong financial performance.
Revenue for the year ended 30 April 2021 increased to GBP45.68
million (2020: GBP17.79 million) and profit before tax rose to
GBP14.06 million (2020: GBP4.19 million). Earnings per share
increased to 122.52p (2020: 37.51p).
A total of GBP14.27 million of cash flow was generated from
operations during the period. Net assets at 30 April 2021 stood at
GBP8.96 million (2020: GBP3.30 million), underpinned by cash
balances of GBP11.8 million (2020: GBP5.21 million) and our
965-year leasehold office properties valued at GBP0.95 million. The
Group is debt free.
Dividends
In line with our progressive dividend policy, the Board is
recommending a final dividend of 5.0p per share (2020: 3.0p) for
the full year ended 30 April 2021 subject to shareholder approval
at the Annual General Meeting on 15 September 2021. The final
dividend will be paid on 1 October 2021 to shareholders on the
register on 17 September 2021.
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 GBP4.71 million to shareholders
by way of a special dividend (the "Special Dividend") of 50.0p per
ordinary share.
The Special Dividend will be paid on 16 July 2021 to
shareholders on the register at the close of business on 2 July
2021. The ex-dividend date is 1 July 2021. Following the payment of
the Special Dividend the Company will retain working capital cash
balances in excess of GBP6.0 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
The period to 30 April 2021 marked the first financial year
since our inception in 2000 that the Company did not generate any
physical site revenues. Our strategic decision to move to an online
only model was based on efficiencies that can be delivered, both
financially and operationally, using evolving digital channels.
We have continued to innovate and have successfully executed
marketing strategies more effectively using predominantly digital
media, complemented by traditional advertising channels.
In recent years, we have successfully diversified our offering
and significantly broadened our addressable market by offering
players prizes across new categories and at a variety of ticket
prices. BOTB's principal competitions are the Weekly Dream Car
Competition, which continued to perform well and the more recently
launched Midweek Competition, with a more focussed selection of
prizes. During the year, the improvements we have made to enhance
the overall user experience included materially reduced prices, a
wider choice of cars, cash included as standard, and further
improvements to the 'Spot the Ball' mechanic.
I am pleased to report that our continued innovation is popular
with our players and has driven increased levels of engagement and
repeat play.
The Weekly Lifestyle Competition, which features luxury watches,
motorbikes, holidays, other gadgets/technology and cash prizes, has
continued to perform well.
Whilst the COVID-19 restrictions in place during most of the
year significantly curtailed the ability of our presenting team to
surprise winners at home or at work, we were pleased that the video
calling alternatives available were well received by our players
and continued to provide the engaging content for which BOTB has
become so well regarded.
BOTB now has a database of over 1.7 million which supports
existing competitions and can also provide us with new
opportunities. We have continued to consider and review potential
new products and partnerships and will update shareholders as
appropriate in due course.
BEST OF THE BEST PLC
Preliminary Results (continued)
For The Year Ended 30 April 2021
Continued investment in IT development
With the vast majority of our website visits and over half of
our revenue now from mobile devices, mobile usage remains
fundamental in our approach to IT development. During the year, we
have made further progress to enhance our mobile interface which
has led to higher conversion rates, including improvements to the
mobile registration, playing and payment experience, including
Apple Pay, which in turn will assist both conversion and frequency
of engagement.
Following a longer than expected period of development and
testing, both our native iOS app and our native Android app are now
live in the respective Apple and Play stores. Whilst the Android
App was only recently released, customer reaction has so far been
pleasingly positive and has now given us the confidence to commence
a programme of customer awareness and app marketing activity.
New player acquisition and CRM
As planned, during the financial year we accelerated marketing
investment, in particular using digital marketing to engage with
new players and this has delivered efficient returns on investment
and lifetime value metrics. All marketing investment is strictly
calibrated on the cost per acquisition of a new customer versus
their predicted lifetime value.
We have continued to focus on social media as a core marketing
channel, driving both customer acquisition and brand awareness. Our
engagement metrics increased with o ur Facebook page now attracting
over 400,000 followers, with BOTB's YouTube channel at over 60,000
subscribers, and Instagram followers nearing 300,000.
Two new TV ads were produced and aired during the period, with
ongoing testing and optimisation for different audiences. We have
continued to complement our social media activities with campaigns
executed on traditional media to maximise our exposure to a wide
range of ages and demographics, including our 'traditional' airport
customer.
Board Changes
In March 2021, Ben Hughes and Daniel Burns joined the Board as
Executive Director and Non-Executive Director, respectively.
Ben Hughes has served as Marketing Director for Best of the Best
since 2010 and leads all marketing strategy, budgeting and delivery
for the Company. During his tenure Ben has been responsible for
devising and implementing the Company's marketing strategies to
increase online revenues and to significantly grow the brand's
online presence. Previously, Ben spent nine years at News
International where he was Head of Marketing (Digital) for News
Group Media.
Daniel Burns is an experienced corporate financier in the
gaming, competitions, lottery and media sector with over 20 years
of advisory experience covering both public and private companies.
Daniel is Managing Partner at Oakvale Capital LLP, a corporate
finance advisor in the gaming and media industry. Daniel previously
worked as a corporate lawyer at Macfarlanes, focusing on venture
capital and international mergers and acquisitions. He has sat on
the advisory boards of a number of the largest gaming
companies.
Following the appointment of Ben and Daniel, the Company had
three Executive Directors and three Non-Executive Directors, of
which one can be considered independent. The Board continues to
place significant importance on corporate governance and as a
result will seek to appoint an additional independent director in
due course. In consideration of this, Michael Hindmarch,
Non-Executive Chairman, has also agreed to step down as Chairman by
1 October 2021, with an independent Non-Executive Chairman
appointed in due course.
Outlook
Our performance in 2020 reflects our online focus and efficient
investment in marketing activities and we are pleased that BOTB has
delivered substantially increased revenue and profit. BOTB's
ability to generate cash, our strong balance sheet and the fact
that we have no debt gives us confidence in our ability to deliver
continued future growth.
We are excited about the opportunities that the year ahead holds
for BOTB, with a recovering economy and hopefully a return to
normality. However, in contrast to the summer 2020 period, we have
experienced somewhat of a reduction in customer engagement since
the latest easing of lockdown restrictions on April 12, 2021,
specifically relating to the understandably long-awaited re-opening
of hospitality and non-essential retail. We are closely monitoring
this, but with our flexible model, growth strategy and plans for
the year ahead, we expect customer engagement to return to normal
levels before too long. I look forward to updating shareholders in
due course.
BEST OF THE BEST PLC
Preliminary Results (continued)
For The Year Ended 30 April 2021
KEY PERFORMANCE INDICATORS
The Directors have monitored the performance of the Company 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 now operates 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.
The Company 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 to a significant extent is dependent
on the Executive Directors and other senior managers. To mitigate
the risk of losing such personnel, the Company endeavour to ensure
that they are fairly remunerated and well incentivised.
Regulatory change
The Company currently operates weekly skilled competitions,
which are not regulated. This could be subject to change in the
future and the Company continue to seek appropriate legal advice to
ensure they comply with all relevant legislation and licensing.
ON BEHALF OF THE BOARD
William Hindmarch
Chief Executive
BEST OF THE BEST PLC
Consolidated Statement of Comprehensive Income
For The Year Ended 30 April 2021
Notes 2021 2020
GBP000 GBP000
CONTINUING OPERATIONS
Revenue 45,681 17,789
Cost of sales (17,410) (7,267)
--------- --------
GROSS PROFIT 28,271 10,522
Administrative expenses (14,209) (6,328)
--------- --------
OPERATING PROFIT 14,062 4,194
Finance income 7 1 11
--------- --------
PROFIT BEFORE INCOME TAX 9 14,063 4,205
Income tax 10 (2,569) (687)
--------- --------
PROFIT FOR THE YEAR 11,494 3,518
--------- --------
OTHER COMPREHENSIVE INCOME
Items that may be reclassified
to profit or loss
Exchange differences on translating - -
foreign operations
OTHER COMPREHENSIVE INCOME FOR
THE
YEAR, NET OF INCOME TAX - -
--------- --------
TOTAL COMPREHENSIVE INCOME FOR
THE
YEAR 11,494 3,518
Profit attributable to:
Owners of the parent 11,494 3,518
--------- --------
Total comprehensive income attributable
to:
Owners of the parent 11,494 3,518
--------- --------
Earnings per share expressed in
pence per share
Basic from continuing operations 12 122.52 37.51
Diluted from continuing operations 12 121.82 37.44
The notes form part of this Preliminary Announcement
BEST OF THE BEST PLC
Consolidated Statement of Financial Position
As at 30 April 2021
Notes 2021 2020
GBP000 GBP000
ASSETS
NON-CURRENT ASSETS
Intangible assets 14 160 81
Property, plant and equipment 15 1,103 1,086
Investments 16 - -
Deferred tax 21 - 3
------- -------
1,263 1,170
CURRENT ASSETS
Trade and other receivables 17 271 376
Cash and cash equivalents 18 11,814 5,210
------- -------
12,085 5,586
TOTAL ASSETS 13,348 6,756
------- -------
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 19 471 469
Share premium 277 199
Capital redemption reserve 236 236
Foreign exchange reserve 27 27
Retained earnings 7,953 2,369
------- -------
TOTAL EQUITY 8,964 3,300
------- -------
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 20 3,053 3,004
Tax payable 1,317 452
Provision 21 14 -
------- -------
TOTAL LIABILITIES 4,384 3,456
------- -------
TOTAL EQUITY AND LIABILITIES 13,348 6,756
------- -------
The notes form part of this Preliminary A nnouncement
BEST OF THE BEST PLC
Company Statement of Financial Position
As at 30 April 2021
Notes 2021 2020
GBP000 GBP000
ASSETS
NON-CURRENT ASSETS
Intangible assets 14 160 81
Property, plant and equipment 15 1,103 1,086
Investments 16 - -
Deferred tax 21 - 3
------- -------
1,263 1,170
CURRENT ASSETS
Trade and other receivables 17 271 376
Cash and cash equivalents 18 11,814 5,210
------- -------
12,085 5,586
TOTAL ASSETS 13,348 6,756
------- -------
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 19 471 469
Share premium 277 199
Capital redemption reserve 236 236
Retained earnings 7,975 2,390
------- -------
TOTAL EQUITY 8,959 3,294
------- -------
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 20 3,058 3,010
Tax payable 1,317 452
Provision 21 14 -
------- -------
TOTAL LIABILITIES 4,389 3,462
------- -------
TOTAL EQUITY AND LIABILITIES 13,348 6,756
------- -------
The notes form part of this Preliminary A nnouncement
BEST OF THE BEST PLC
Consolidated Statement of Changes in Equity
For The Year Ended 30 April 2021
Capital
Called Share redemption
up premium reserve
share
capital
GBP000 GBP000 GBP000
Balance at 1 May 2019 469 199 236
---------- ---------- ------------
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 469 199 236
---------- ---------- ------------
Issue of share capital 2 78 -
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 2021 471 277 236
---------- ---------- ------------
Foreign
exchange Retained
reserve earnings Total
GBP000 GBP000 GBP000
Balance at 1 May 2019 27 352 1,283
---------------- ----------- --------
Issue of share capital
Dividends paid - (1,501) (1,501)
Transactions with owners - (1,501) (1,501)
---------------- ----------- --------
Profit for the year - 3,518 3,518
Other comprehensive income
Exchange differences arising
on translating
foreign operations - - -
---------------- ----------- --------
Total comprehensive income - 3,518 3,518
---------------- ----------- --------
Balance at 30 April 2020 27 2,369 3,300
---------------- ----------- --------
Issue of share capital - - 80
Dividends paid - (5,910) (5,910)
Transactions with owners - (5,910) (5,910)
---------------- ----------- --------
Profit for the year - 11,494 11,494
Other comprehensive income
Exchange differences arising
on translating
foreign operations - - -
Total comprehensive income - 11,494 11,494
---------------- ----------- --------
Balance at 30 April 2021 27 7,953 8,964
---------------- ----------- --------
The notes form part of this Preliminary A nnouncement
BEST OF THE BEST PLC
Company Statement of Changes in Equity
For The Year Ended 30 April 2021
Capital
Called Share redemption
up premium reserve
share
capital
GBP000 GBP000 GBP000
Balance at 1 May 2019 469 199 236
---------- ----------------- --------------------
Issue of share capital - - -
Dividends paid - - -
Transactions with owners - - -
---------- ----------------- --------------------
Profit for the year - - -
Total comprehensive income - - -
---------- ----------------- --------------------
Balance at 30 April 2020 469 199 236
---------- ----------------- --------------------
Issue of share capital 2 78 -
Dividends paid - - -
Transactions with owners - - -
---------- ----------------- --------------------
Profit for the year - - -
Total comprehensive income - - -
---------- ----------------- --------------------
Balance at 30 April 2021 471 277 236
---------- ----------------- --------------------
Retained
earnings Total
GBP000 GBP000
Balance at 1 May 2019 373 1,277
----------- --------
Issue of share capital - -
Dividends paid (1,501) (1,501)
Transactions with owners (1,501) (1,501)
----------- --------
Profit for the year 3,518 3,518
Total comprehensive income 3,518 3,518
----------- --------
Balance at 30 April 2020 2,390 3,294
----------- --------
Issue of share capital - 80
Dividends paid (5,910) (5,910)
Transactions with owners (5,910) (5,910)
----------- --------
Profit for the year 11,495 11,495
Total comprehensive income 11,495 11,495
----------- --------
Balance at 30 April 2021 7,975 8,959
----------- --------
The notes form part of this Preliminary A nnouncement
BEST OF THE BEST PLC
Consolidated Statement of Cash Flows
For The Year Ended 30 April 2021
Notes 2021 2020
GBP000 GBP000
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations 14,270 4,892
Tax paid (1,686) (643)
-------- --------
Net cash from operating activities 12,584 4,249
======== ========
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of intangible assets (84) (76)
Purchase of property, plant and
equipment (67) (17)
Interest received 1 11
-------- --------
Net cash from investing activities (150) (82)
======== ========
CASH FLOWS FROM FINANCING ACTIVITIES
Share issue 80 -
Equity dividends paid (5,910) (1,501)
-------- --------
Net cash from financing activities (5,830) (1,501)
======== ========
Increase in cash and cash equivalents 6,604 2,666
-------- --------
Cash and cash equivalents at
beginning of year 5,210 2,544
-------- --------
Cash and cash equivalents at
end of year 18 11,814 5,210
======== ========
RECONCILIATION OF PROFIT BEFORE INCOME TAX TO CASH GENERATED
FROM OPERATIONS
2021 2020
GBP000 GBP000
Profit before income tax 14,063 4,205
Depreciation charges 50 49
Amortisation charges 5 5
Finance income (1) (11)
------- -------
14,117 4,248
Decrease/(increase) in trade and other
receivables 105 (216)
Increase in trade and other payables 48 1,211
Increase in provision - (351)
------- -------
Cash generated from operations 14,270 4,892
======= =======
The notes form part of this Preliminary Announcement
BEST OF THE BEST PLC
Company Statement of Cash Flows
For The Year Ended 30 April 2021
Notes 2021 2020
GBP000 GBP000
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations 14,270 4,892
Tax paid (1,686) (643)
-------- --------
Net cash from operating activities 12,584 4,249
======== ========
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of intangible assets (84) (76)
Purchase of property, plant and
equipment (67) (17)
Sales of property, plant and - -
equipment
Interest received 1 11
-------- --------
Net cash from investing activities (150) (82)
======== ========
CASH FLOWS FROM FINANCING ACTIVITIES
Share issue 80 -
Equity dividends paid (5,910) (1,501)
-------- --------
Net cash from financing activities (5,830) (1,501)
======== ========
Increase in cash and cash equivalents 6,604 2,666
-------- --------
Cash and cash equivalents at
beginning of year 5,210 2,544
-------- --------
Cash and cash equivalents at
end of year 18 11,814 5,210
======== ========
RECONCILIATION OF PROFIT BEFORE INCOME TAX TO CASH GENERATED
FROM OPERATIONS
2021 2020
GBP000 GBP000
Profit before income tax 14,063 4,205
Depreciation charges 50 49
Amortisation charges 5 5
Finance income (1) (11)
------- -------
14,117 4,248
Decrease/(increase) in trade
and other receivables 105 (216)
Increase in trade and other payables 48 1,211
Increase in provision - (351)
------- -------
Cash generated from operations 14,270 4,892
======= =======
The notes form part of this Preliminary Announcement
BEST OF THE BEST PLC
Notes to the Preliminary Announcement
For The Year Ended 30 April 2021
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 in conformity with the requirements 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
thousand Pounds.
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 2020. The Company and
Group have not early adopted any other Standards, Amendments or
Interpretations that have been issued but are not yet
effective.
The following standards have been adopted:
-- Amendments to References to Conceptual Framework in IFRS
Standards. The Amendments effective date 1 January 2021.
-- 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 2021.
-- 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 2021.
-- Covid-19 Related Rent Concessions (Amendment to IFRS 16).
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For The Year Ended 30 April 2021
2. PRINCIPAL ACCOUNTING POLICIES (continued)
The following Adopted IFRSs have been issued but have not been
applied by the Group in these financial statements, all of which
are effective for the accounting period commencing 1 January 2022.
Their adoption is not expected to have a material effect on the
financial statements unless otherwise indicated:
-- Narrow scope amendments to IFRS 3, IAS 16 and IAS 27.
-- Annual improvements to IFRS Standards 2018 - 2020.
-- Amendments to IAS 1: Classification of Liabilities as Current or non Current.
As yet, none of these have been endorsed for use in the UK and
will not be adopted until such time as endorsement is confirmed.
The Directors do not expect any material impact as a result of
adopting the standards and amendments listed above in the financial
year they become effective.
The company has applied UK-adopted IAS. At the date of
application, both UK-adopted IAS and EU-adopted IFRS the same.
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 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.
2.6 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 2021
2. PRINCIPAL ACCOUNTING POLICIES (continued)
2.7 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.
2.8 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.
2.9 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.
2.10 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 2021
2. PRINCIPAL ACCOUNTING POLICIES (continued)
2.11 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.
2.12 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.
2.13 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 2021
2. PRINCIPAL ACCOUNTING POLICIES (continued)
2.14 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.
2.15 INVESTMENTS
Investments in subsidiaries and unlisted investments are
recorded at cost less any provision for permanent diminution in
value.
2.16 LEASES
The cost of leases of low value items and those with a term of
less than one year at inception are recognised as incurred.
2.17 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 2021
2. PRINCIPAL ACCOUNTING POLICIES (continued)
2.18 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.
2.19 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 2021
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 GBP41,499,000 (2020:
GBP14,940,000) whilst sales from non-UK activities totalled
GBP4,182,000 (2020: GBP2,848,000).
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For The Year Ended 30 April 2021
6. EMPLOYEES AND DIRECTORS
Group Company
2021 2020 2021 2020
GBP000 GBP000 GBP000 GBP000
Wages and salaries 1,941 1,748 1,941 1,748
Social security costs 241 224 241 224
Other pension costs 16 35 16 35
------- ------- ------- -------
2,198 2,007 2,198 2,007
======= ======= ======= =======
The average monthly number of employees during the year,
including the Directors, was as follows:
Group Company
2021 2020 2021 2020
Number Number Number Number
Sales 9 1 9 1
Administration 10 17 10 17
Management 2 3 2 3
------- ------- -------- -------
21 21 21 21
======= ======= ======== =======
2021 2020
GBP000 GBP000
Directors' remuneration 613 562
======= =======
The number of Directors to whom retirement benefits were
accruing was as follows:
2021 2020
Number Number
Money purchase schemes 3 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:
2021 2020
GBP000 GBP000
Emoluments 277 263
======= =======
7. FINANCE INCOME
2021 2020
GBP000 GBP000
Finance income:
Deposit account interest 1 11
------- -------
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For The Year Ended 30 April 2021
9. PROFIT BEFORE INCOME TAX
The profit before income tax is stated after
charging/(crediting):
2021 2020
GBP000 GBP000
Depreciation and impairment of property, plant
and equipment 50 49
Amortisation of intangible assets 5 5
Foreign exchange losses 1 2
Auditor's remuneration
Audit fees 36 34
Taxation services 3 2
Other 18 23
------- -------
10. INCOME TAX
Analysis of tax expense
2021 2020
GBP000 GBP000
Current tax:
Current year charge 2,552 686
Prior year over provision - (8)
------- -------
Total current tax 2,552 678
======= =======
Deferred tax
Origination and reversal of temporary timing
differences 17 9
------- -------
Total deferred tax 17 9
======= =======
Total tax charge for the year 2,569 687
======= =======
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:
2021 2020
GBP GBP
Profit on ordinary activities before income
tax 14,063 4,205
======= ======
Profit on ordinary activities multiplied by
the standard rate of corporation
tax in the UK of 19% (2020: 19%) 2,672 799
Effects of:
Other timing differences (1) (4)
Non-deductible expenses - -
Research and development enhanced deduction (102) (100)
Over provision in prior year (8)
Tax expense 2,569 687
======= ======
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For The Year Ended 30 April 2021
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 GBP11,494,000,000 (2020: GBP3,517,000).
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.
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.
2021 2020
Profit for the year and basic and diluted
earnings attributable to the
owners of the parent - GBP000 11,494 3,518
---------------- ----------
Weighted average number of ordinary shares
- number 9,381,253 9,377,253
Basic earnings per share - pence 122.52p 37.51p
Adjusted weighted average number of ordinary
shares - number 9,435,186 9,394,296
Diluted earnings per share - pence 121.82p 37.44p
13. DIVIDS
A final dividend of 3.0 pence per ordinary share for the full
year ending 30 April 2020 was paid on 2 October 2020 to
shareholders on the register at 18 September 2020. A special
dividend of 20.0 pence per ordinary share was paid on 10 July 2020
to shareholders on the register at the close of business on 26 June
2020, and a further special dividend of 40.0 pence per ordinary
share was paid on 5 February 2021 to shareholders on the register
at the close of business on 22 January 2021.
The Board is recommending a final dividend of 5.0 pence per
share (2020: 3.0 pence per share) for the full year ending 30 April
2021 subject to shareholder approval at the Annual General Meeting
on 15 September 2021. The final dividend will be paid on 1 October
2021 to shareholders on the register on 17 September 2021.
A special dividend of 50.0 pence per ordinary share will also be
paid on 16 July 2021 to shareholders on the register at the close
of business on 2 July 2021.
14. INTANGIBLE ASSETS - GROUP AND COMPANY
Development
costs
GBP000
COST
At 1 May 2020 391
Additions 84
------------
At 30 April 2021 475
------------
AMORTISATION
At 1 May 2020 310
Charge for year 5
------------
At 30 April 2021 315
------------
NET BOOK VALUE
2021 160
------------
2020 81
============
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For The Year Ended 30 April 2021
14. INTANGIBLE ASSETS - GROUP AND COMPANY (continued)
Development
costs
GBP000
COST
At 1 May 2019 315
Additions 76
------------
At 30 April 2020 391
------------
AMORTISATION
At 1 May 2019 305
Charge for year 5
------------
At 30 April 2020 310
------------
NET BOOK VALUE
2020 81
------------
2019 10
============
15. PROPERTY, PLANT AND EQUIPMENT - GROUP AND COMPANY
Long Improvements Display
leasehold to property equipment
GBP000 GBP000 GBP000
COST
At 1 May 2020 954 26 103
Additions - 29 -
At 30 April 2021 954 55 103
=========== ============= ===========
DEPRECIATION AND IMPAIRMENT
At 1 May 2020 14 4 77
Charge for the year 4 1 -
At 30 April 2021 18 5 77
=========== ============= ===========
NET BOOK VALUE
2021 936 50 26
=========== ============= ===========
2020 940 22 26
=========== ============= ===========
Motor Computer
vehicles equipment Total
GBP000 GBP000 GBP000
COST
At 1 May 2020 155 147 1,385
Additions - 37 66
At 30 April 2021 155 184 1,451
========== =========== ========
DEPRECIATION AND IMPAIRMENT
At 1 May 2020 71 133 299
Charge for the year 21 24 50
At 30 April 2021 92 156 348
========== =========== ========
NET BOOK VALUE
2021 63 28 1,103
========== =========== ========
2020 84 14 1,086
========== =========== ========
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For The Year Ended 30 April 2021
15. PROPERTY, PLANT AND EQUIPMENT - GROUP AND COMPANY
(continued)
Long Improvements Display Fixtures
leasehold to property equipment and fittings
GBP000 GBP000 GBP000 GBP000
COST
At 1 May 2019 954 26 103 172
Additions - - - -
Disposals - - - (172)
----------- ------------- ----------- --------------
At 30 April 2020 954 26 103 -
=========== ============= =========== ==============
DEPRECIATION AND IMPAIRMENT
At 1 May 2018 10 3 77 172
Charge for the year 4 1 - -
Eliminated on disposals - - - (172)
----------- ------------- ----------- --------------
At 30 April 2020 14 4 77 -
=========== ============= =========== ==============
NET BOOK VALUE
2020 940 22 26 -
=========== ============= =========== ==============
2019 944 23 26 -
=========== ============= =========== ==============
Motor Computer
vehicles equipment Total
GBP000 GBP000 GBP000
COST
At 1 May 2019 155 129 1,539
Additions - 18 18
Disposals - - (172)
---------- ----------- --------
At 30 April 2020 155 147 1,385
========== =========== ========
DEPRECIATION AND IMPAIRMENT
At 1 May 2019 43 116 422
Charge for the year 28 17 50
Eliminated on disposals - - (172)
---------- ----------- --------
At 30 April 2020 71 133 299
========== =========== ========
NET BOOK VALUE
2020 84 14 1,086
========== =========== ========
2019 113 13 1,117
========== =========== ========
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For The Year Ended 30 April 2021
16. INVESTMENTS
Group
Unlisted
investments
GBP000
COST
At 1 May 2020 and 30 April 2021 70
-------------
IMPAIRMENT
At 1 May 2020 and 30 April 2021 70
NET BOOK VALUE
At 1 May 2020 and 30 April 2021 -
=============
Unlisted investments relate to the cost of acquiring options in
another company.
Company
Shares
in group Unlisted
undertakings investments Total
GBP000 GBP000 GBP000
COST
At 1 May 2020 and 30 April 2021 - 70 70
================ ============== ========
IMPAIRMENT
At 1 May 2020 and 30 April 2021 - 70 70
================ ============== ========
NET BOOK VALUE
At 1 May 2020 and 30 April 2021 - - -
================ ============== ========
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
2021 2020 2021 2020
GBP000 GBP000 GBP000 GBP000
Trade receivables 3 2 3 2
Other receivables 37 309 37 309
Prepayments and accrued income 231 65 231 65
------- ----------- ------- -------
271 376 271 376
======= =========== ======= =======
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 2021
18. CASH AND CASH EQUIVALENTS - GROUP AND COMPANY
Group Company
2021 2020 2021 2020
GBP000 GBP000 GBP000 GBP000
Bank accounts 11,812 5,209 11,812 5,209
Cash in hand 2 1 2 1
------- ------- ------------ -------
11,814 5,210 11,814 5,210
======= ======= ============ =======
19. CALLED UP SHARE CAPITAL - COMPANY
Allotted, issued and fully 2021 2020 2021 2020
paid
Ordinary shares of 5 pence Number Number GBP000 GBP000
each
At the start of the year 9,377,253 9,377,253 469 469
Shares allotted during the
year 35,648 - 2 -
Purchased for cancellation - - - -
in the year
---------- ---------- ------- -------
At the end of the year 9,412,901 9,377,253 471 469
========== ========== ======= =======
35,648 Ordinary shares of GBP0.05 per share were allotted and
issued following the exercise of share options granted in December
2017.
20. TRADE AND OTHER PAYABLES - GROUP AND COMPANY
Group Company
2021 2020 2021 2020
GBP000 GBP000 GBP000 GBP000
Trade creditors 286 165 286 165
Amounts owed to Group undertakings - - 5 5
Social security and other
taxes 638 902 638 902
Other creditors 1,709 1,493 1,709 1,494
Contract liability balances 416 441 416 441
Pension creditor 4 3 4 3
------- ------- ------- -------
3,053 3,004 3,058 3,010
======= ======= ======= =======
21. DEFERRED TAX - GROUP AND COMPANY
Group Company
2021 2020 2021 2020
GBP000 GBP000 GBP000 GBP000
Asset at 1 May 3 13 3 13
Movement in the year (17) (10) (17) (10)
------- ------- ------- -------
(Liability)/asset at 30 April (14) 3 (14) 3
======= ======= ======= =======
Deferred tax liabilities and assets have been recognised in
respect of accelerated capital allowances giving rise to deferred
tax liabilities and assets where the Directors believe that it is
probable that these liabilities will fall due and assets will be
recovered.
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For The Year Ended 30 April 2021
22. PROVISIONS - GROUP AND COMPANY
Group Company
2021 2020 2021 2020
GBP000 GBP000 GBP000 GBP000
At 1 May - 360 - 360
Utilised during the year - (172) - (172)
Released during the year - (188) - (188)
Asset at 30 April - - - -
========= ======= ======= =======
The onerous retail site lease was exited in the prior 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
2020 2021 date price
19-12-2017 45,000 (30,648) (5,000) 9,352 19-12-2027 2.25
28-02-2020 85,000 - - 85,000 28-02-2030 3.85
19-07-2020 - 10,000 - - 10,000 19-07-2030 16.00
19-09-2020 - 5,000 - - 5,000 19-09-2030 18.00
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:
2021 2021 2020 2020
Number WAEP Number WAEP
Outstanding at the beginning
of year 130,000 330.00 45,000 225.00
Granted during the year 15,000 1666.67 85,000 385.00
Exercised during the year (30,648) 225.00 - -
Lapsed during the year (5,000) 225.00 - -
--------- -------- -------- -------
Outstanding at the end of the
year 109,352 547.00 130,000 330.00
--------- -------- -------- -------
Exercisable at the end of the
year 9,352 225.00 - -
========= ======== ======== =======
The weighted average remaining contractual life of share options
outstanding as at 30 April 2021 was 8 years and 8 months (2020: 9
years and 1 month).
No amount has been recognised in these financial statements in
respect of share option charges as the amount would be
insignificant (2020: GBPNil).
24. LEASES - GROUP AND COMPANY
The amounts recognised in the Consolidated Statement of
Comprehensive Income was as follows:
Group Company
2021 2020 2021 2020
GBP000 GBP000 GBP000 GBP000
Expenses related to
short term leases 10 14 10 14
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 2021
25. LEASES - GROUP AND COMPANY (continued)
.
The amount recognised in the Consolidated and Company Statement
of Cash Flows was as follows:
Group Company
2021 2020 2021 2020
GBP000 GBP000 GBP000 GBP000
Cash flows from operating
activities 10 14 10 14
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. The Group's financial assets and liabilities are all
measured at amortised cost and so no fair value disclosures are
required.
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.
2021 2020
GBP000 GBP000
Financial assets classified
as loans and receivables
- carrying amounts:
Trade receivables 3 288
Other receivables 37 22
Cash and cash equivalents 11,415 5,210
------- -------
11,455 5,520
======= =======
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:
2021 2020
GBP000 GBP000 GBP000 GBP000
Financial liabilities- carrying Up to After Up to After
amounts 1 year 1 year 1 year 1 year
Trade and other payables 2,636 - 2,564 -
-------- -------- -------- --------
2,636 2,564 -
======== ======== ======== ========
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END
FR SFEFUIEFSEIM
(END) Dow Jones Newswires
June 16, 2021 02:00 ET (06:00 GMT)
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