The information contained within
this announcement is deemed by the Company to constitute inside
information stipulated under the Market Abuse Regulation (EU) No.
596/2014. Upon the publication of this announcement via the
Regulatory Information Service, this inside information is now
considered to be in the public domain.
19 March 2024
![Gfinity Logo - LogoDix](https://dw6uz0omxro53.cloudfront.net/2995246/4a2bb301-235f-4e20-ac4c-8bfa4f6a5c14.jpg)
Gfinity plc
("Gfinity" or the "Company")
Half Year
Results
Gfinity (AIM: GFIN), a leading
Digital Media provider, announces its unaudited results for the
six-month period ended 31 December 2023 and which are also
available on the Company's website www.gfinityplc.com
Operational Highlights:
The period ended 31 December 2023
was a transitional period for the Company. During this period we
made significant cost cuts through headcount reduction,
renegotiated contracts and exiting unprofitable business
lines.
After divesting the majority of
Athlos Gaming Technologies in June 2023, we completed the full exit
in this period. We thus reduced any ongoing exposure to Athlos
(Athlos requires significant further investment over the next 12
months, and a refocus on their product offering). The completed
exit generated proceeds of £260,000, and a profit on disposal of
the same amount, which is included in the Operating Loss, as shown
in the Profit and Loss account*.
The Company was also able to divest
our Esports Solutions division, while retaining some potential
upside stake, without the risk of any further liabilities. The
esports sector has been in a multi-year downturn, with the
industry's leaders all trying to find a profitable business model,
based on broadcasting and one off events, without control of game
IP.
In the past 6 months, Gfinity has
laid essential groundwork for new, future revenue growth: in terms
of traffic/audience, by launching new sites and collaborating with
national publishers on gaming content; and, in terms of sales, by
taking more control in-house - both commercially and technically -
of our advertising and sponsorship sales, we are now well placed to
drive improved yields, and volumes.
In addition, we have reduced the
digital media and management headcount. Restructuring our website
editorial and writing teams to a more centralised structure enabled
over 50% reduction; and at a senior level, we have reduced by two
Directors, along with other senior roles. We now operate a much
flatter and responsive model, more in keeping with today's
technology industry.
The actions above show significant
progress in cost cutting, with monthly costs reduced by over 70%,
and headcount now appropriate for a modern digital company. Gfinity
has now moved to a period where we can focus on profitability
through a new more disciplined approach to our budget.
Gfinity is now focused as a pure
play digital media network, operating 12 sites. The Gfinity Digital
Media network performed well during the period, with revenues
increasing, and monthly session numbers rebounding to over
10,000,000 in December. The network added one new site in the
period, with plans to add at least one further site in H2 2024. We
have also incorporated AI into our processes, to streamline
workflows and make considerable savings.
As a gaming and entertainment
network, we continue to be highly attractive to advertisers, which
is reflected in our healthy income per user.
The Company appointed David Halley
as CEO in August, to oversee the overhaul of the Company into an
effective platform for future growth.
Outlook
The whole digital media sector
experienced significant pressure in H2 2023, with several Google
algorithm changes creating uncertainty and headwinds. However, the
gaming vertical continues to generate interest, and remains an
exciting part of the sector into the future.
Now we have concluded our budget
reduction process, we are confident we can deliver further
improvements in profitability in H2 FY2024, with cashflow
increasing as we improve and increase our sites and
editorial.
Overall, Gfinity remains well
positioned as a business, with a strong reputation, an owned
audience and proprietary technology in an industry that continues
to grow. The Directors believe that the actions taken over the six
months to December 2023 have positioned the business to fully
capitalise on that opportunity. In 2024, we believe there will be
consolidation in our market, with distressed players for sale; and
big opportunities will arise in the monetisation of publishers and
the attached technology which Gfinity can own and leverage to
create large, scalable opportunities.
For further information please
contact:
Enquiries:
Beaumont Cornish Limited ("Beaumont Cornish") is the Company's
Nominated Adviser and is authorised and regulated by the FCA.
Beaumont Cornish's responsibilities as the Company's Nominated
Adviser, including a responsibility to advise and guide the Company
on its responsibilities under the AIM Rules for Companies and AIM
Rules for Nominated Advisers, are owed solely to the London Stock
Exchange. Beaumont Cornish is not acting for and will not be
responsible to any other persons for providing protections afforded
to customers of Beaumont Cornish nor for advising them in relation
to the proposed arrangements described in this announcement or any
matter referred to in it.
Group Statement of Profit or Loss
|
6 months to 31 December 2023
Unaudited
|
|
6 months to 31 December 2022
Unaudited
|
|
Year to 30 June 2023
Audited
|
|
£
|
|
£
|
|
£
|
CONTINUING
OPERATIONS
Note
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
4
|
805,741
|
|
1,360,345
|
|
2,190,216
|
|
|
|
|
|
|
Cost of sales
|
(238,207)
|
|
(636,704)
|
|
(953,905)
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
567,534
|
|
723,641
|
|
1,236,311
|
|
|
|
|
|
|
|
|
|
|
|
|
Administrative expenses
|
*(586,739)
|
|
(1,661,552)
|
|
(3,788,329)
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss
|
(19,205)
|
|
(937,911)
|
|
(2,552,018)
|
|
|
|
|
|
|
Impairment charge
|
-
|
|
-
|
|
(5,984,171)
|
|
|
|
|
|
|
Re-assessment of Deferred
Consideration
|
-
|
|
-
|
|
931,311
|
|
|
|
|
|
|
Loss arising on loss of control of a
subsidiary
|
-
|
|
-
|
|
(548,761)
|
|
|
|
|
|
|
Finance income
|
152
|
|
373
|
|
-
|
|
|
|
|
|
|
Finance Costs
|
(590)
|
|
-
|
|
(25,976)
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on ordinary activities before tax
|
(19,643)
|
|
(937,538)
|
|
(8,179,615)
|
|
|
|
|
|
|
Taxation
|
194,916
|
|
123,459
|
|
974,876
|
|
|
|
|
|
|
Retained profit/(loss) for the period
|
175,273
|
|
(814,079)
|
|
(7,204,739)
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on discontinued operations, net
of tax
|
-
|
|
(960,200)
|
|
(3,050,097)
|
|
|
|
|
|
|
Profit/(loss) and total comprehensive profit/(loss) for the
period
|
175,273
|
|
(1,774,279)
|
|
(10,254,836)
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Share
(Basic)
3
|
0.006
|
|
(0.001)
|
|
(0.42)
|
Group statement of comprehensive income
|
6 months to 31 December 2023
Unaudited
|
|
6 months to 31 December 2022
Unaudited
|
|
Year to 30 June 2023
Audited
|
|
£
|
|
£
|
|
£
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) for the Period
|
175,273
|
|
(1,774,279)
|
|
(10,254,836)
|
Items which may subsequently be reclassified to profit or
loss
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange gain on
retranslation of foreign operations
|
2,326
|
|
3,501
|
|
-
|
|
|
|
|
|
|
Other Comprehensive Income for the
period
|
2,326
|
|
3,501
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss
and total comprehensive loss for the period
|
177,599
|
|
(1,770,778)
|
|
(10,254,836)
|
|
|
|
|
|
|
Group Statement of Financial Position
|
|
|
As at 31 December 2023
Unaudited
|
|
As at 30 June 2023
Audited
|
|
|
|
£
|
|
£
|
NON
CURRENT ASSETS
|
|
|
|
|
|
Property, plant and
equipment
|
|
|
-
|
|
14,757
|
Goodwill
|
|
|
495,288
|
|
495,288
|
Intangible fixed assets
|
|
|
415,155
|
|
415,155
|
Other non-current assets
|
|
|
15
|
|
-
|
|
|
|
|
|
|
|
|
|
910,458
|
|
925,200
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
Trade and other
receivables
|
|
|
393,247
|
|
644,540
|
Cash and cash equivalents
|
|
|
215,525
|
|
270,476
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
608,772
|
|
915,016
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
|
1,519,230
|
|
1,840,216
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY AND LIABILITIES
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Share capital
|
|
|
2,722,330
|
|
2,649,030
|
Share premium
|
|
|
55,710,586
|
|
55,367,959
|
Other reserves
|
|
|
423,613
|
|
423,613
|
Retained earnings
|
|
|
(57,811,929)
|
|
(57,989,529)
|
Non-controlling interest
|
|
|
3
|
|
3
|
|
|
|
|
|
|
Total equity
|
|
|
1,044,603
|
|
451,076
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
Other Payables
|
|
|
-
|
|
17,669
|
Deferred Tax Liabilities
|
|
|
-
|
|
72,390
|
|
|
|
|
|
|
|
|
|
-
|
|
90,059
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
Other creditors
|
|
|
54,013
|
|
-
|
Trade and other payables
|
|
|
255,584
|
|
1,060,794
|
Provisions
|
|
|
92,640
|
|
238,287
|
Deferred Tax Liabilities
|
|
|
72,390
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
474,627
|
|
1,389,140
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL EQUITY AND LIABILITIES
|
|
|
1,519,230
|
|
1,840,216
|
|
|
|
|
|
|
Group Cash Flow Statement
|
6 months to 31 December 2023
Unaudited
|
|
6 months to 31 December 2022
Unaudited
|
|
Year to 30 June 2023
Audited
|
|
£
|
|
£
|
|
£
|
|
|
|
|
|
|
Cash
flow used in operating activities
|
|
|
|
|
|
Profit/(loss) for the
period
|
175,273
|
|
(1,774,279)
|
|
(10,254,837)
|
Adjustments for
|
|
|
|
|
|
Depreciation
|
14,757
|
|
47,093
|
|
33,254
|
Amortisation
|
-
|
|
860,758
|
|
1,846,164
|
Impairment of assets
|
-
|
|
-
|
|
5,984,171
|
Gain on disposal of fixed
assets
|
-
|
|
|
|
(112,808)
|
Interest paid
|
591
|
|
-
|
|
-
|
Interest received
|
(152)
|
|
(373)
|
|
(885)
|
Share based payments
|
-
|
|
150,458
|
|
77,691
|
Increase in credit loss
provision
|
-
|
|
-
|
|
29,945
|
Re-evaluation of contingent
consideration
|
-
|
|
-
|
|
51,494
|
Loss on loss of control of
subsidiary
|
-
|
|
-
|
|
(931,311)
|
Profit on disposal of
associate
|
(260,000)
|
|
-
|
|
-
|
(Decrease)/Increase in
provisions
|
(145,647)
|
|
-
|
|
238,287
|
Current and deferred tax
credit
|
-
|
|
(164,591)
|
|
(974,876)
|
Total
|
(215,178)
|
|
(880,934)
|
|
(3,464,950)
|
|
|
|
|
|
|
(increase)/decrease in
receivables
|
251,293
|
|
377,272
|
|
1,324,353
|
(decrease)/Increase in payables
excluding contingent consideration
|
(852,498)
|
|
527,622
|
|
(907,062)
|
Tax credit recovered
|
202,276
|
|
-
|
|
109,732
|
|
|
|
|
|
|
Net
operating (outflow)/inflow
|
(614,107)
|
|
23,960
|
|
(2,937,927)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
flow from/(used in) investing activities
|
|
|
|
|
|
Interest
received
|
152
|
|
373
|
|
885
|
Additions to property, plant and
equipment
|
-
|
|
(3,558)
|
|
(3,498)
|
Additions to intangible
assets
|
-
|
|
(477,140)
|
|
-
|
Payment of deferred/contingent
consideration
|
(118,642)
|
|
-
|
|
(1,031,307)
|
Net proceeds on disposal of fixed
assets
|
-
|
|
-
|
|
213,668
|
Proceeds on disposal of
associate
|
260,000
|
|
-
|
|
-
|
Investment in associate
|
(15)
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
cash from/(used in) investing activities
|
141,495
|
|
(480,325)
|
|
(820,252)
|
|
|
|
|
|
|
Group Cash Flow Statement (continued)
|
|
|
|
|
|
Cash
flow from/(used in) financing activities
|
|
|
|
|
|
Issue of equity share capital (net of
costs)
|
415,927
|
|
(2,000)
|
|
1,887,294
|
Interest paid
|
(591)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
cash from/(used in) financing activities
|
415,336
|
|
(2,000)
|
|
1,887,294
|
|
|
|
|
|
|
Net (decrease) /increase in cash and
cash equivalents
|
(57,276)
|
|
(458,365)
|
|
(1,870,885)
|
|
|
|
|
|
|
Effect of currency translation on
cash
|
2,325
|
|
3,501
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
decrease in cash
|
(54,951)
|
|
(454,864)
|
|
(1,870,885)
|
|
|
|
|
|
|
|
|
|
|
|
|
Opening cash and cash
equivalents
|
270,476
|
|
2,141,361
|
|
2,141,361
|
Closing cash and cash
equivalents
|
215,525
|
|
1,686,497
|
|
270,476
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
decrease in cash
|
(54,951)
|
|
(454,864)
|
|
(1,870,885)
|
|
|
|
|
|
|
Statement of Changes in Equity
|
Share
Capital
|
|
Share
premium
|
|
Share option
reserve
|
|
Retained
earnings
|
|
NCI
|
|
Foreign currency translation
reserve
|
|
Total
equity
|
|
£
|
|
£
|
|
£
|
|
£
|
|
£
|
|
£
|
|
£
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At
30 June 2022 (re-stated)
|
1,315,697
|
|
54,858,008
|
|
3,728,622
|
|
(51,113,657)
|
|
3
|
|
(21,958)
|
|
8,766,715
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss for the period
|
-
|
|
-
|
|
-
|
|
(1,774,279)
|
|
-
|
|
-
|
|
(1,774,279)
|
Other comprehensive income
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3,501
|
|
3,501
|
Total comprehensive income
|
-
|
|
-
|
|
-
|
|
(1,774,279)
|
|
-
|
|
3,501
|
|
(1,770,778)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares issued
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Share Issue Costs
|
-
|
|
(2,000)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(2,000)
|
Share options issued
|
-,
|
|
-
|
|
150,458
|
|
-
|
|
-
|
|
-
|
|
150,458
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total transactions with owners, recognised directly in
equity
|
-
|
|
(2,000)
|
|
150,458
|
|
-
|
|
-
|
|
-
|
|
148,458
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At
31 Dec 2022
|
1,315,697
|
|
54,856,008
|
|
3,879,080
|
|
(52,887,936)
|
|
3
|
|
(18,457)
|
|
7,144,395
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss for the period
|
-
|
|
-
|
|
-
|
|
(8,480,557)
|
|
-
|
|
|
|
(8,480,557)
|
Other comprehensive income
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(3,501)
|
|
(3,501)
|
Total comprehensive income
|
-
|
|
-
|
|
-
|
|
(8,480,557)
|
|
-
|
|
(3,501)
|
|
(8,484,058)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares issued
|
1,333,333
|
|
666,667
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,000,000
|
Share Issue Costs
|
-
|
|
(154,716)
|
|
44,010
|
|
-
|
|
-
|
|
-
|
|
(110,706)
|
Share options issued
|
-
|
|
-
|
|
(98,555)
|
|
-
|
|
-
|
|
-
|
|
(98,555)
|
Release to retained
earnings
|
|
|
|
|
(3,400,922)
|
|
3,400,922
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total transactions with owners, recognised directly in
equity
|
1,333,333
|
|
511,951
|
|
(3,455,467)
|
|
3,400,922
|
|
-
|
|
-
|
|
1,790,739
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At
30 June 2023
|
2,649,030
|
|
55,367,959
|
|
423,613
|
|
(57,967,571)
|
|
3
|
|
(21,958)
|
|
451,076
|
|
,
|
|
|
|
|
|
|
|
|
|
|
|
|
Statement of
Changes in Equity (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Capital
|
|
Share
premium
|
|
Share option
reserve
|
|
Retained
earnings
|
|
NCI
|
|
Foreign currency translation
reserve
|
|
Total
equity
|
|
£
|
|
£
|
|
£
|
|
£
|
|
£
|
|
£
|
|
£
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At
30 June 2023
|
2,649,030
|
|
55,367,959
|
|
423,613
|
|
(57,967,571)
|
|
3
|
|
(21,958)
|
|
451,076
|
|
,
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period
|
-
|
|
-
|
|
-
|
|
175,273
|
|
-
|
|
-
|
|
175,273
|
Other comprehensive income
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,327
|
|
2,327
|
Total comprehensive income
|
-
|
|
-
|
|
-
|
|
175,273
|
|
-
|
|
2,327
|
|
177,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares issued
|
73,300
|
|
366,500
|
|
-
|
|
-
|
|
-
|
|
-
|
|
439,800
|
Share Issue Costs
|
-
|
|
(23,873)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(23,873)
|
Share options issued
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total transactions with owners, recognised directly in
equity
|
73,300
|
|
342,627
|
|
-
|
|
-
|
|
-
|
|
-
|
|
415,927
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At
31 December 2023
|
2,722,330
|
|
55,710,586
|
|
423,613
|
|
(57,792,298)
|
|
3
|
|
(19,631)
|
|
1,044,603
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes to the interim financial statements
1. General Information
Gfinity plc is a Company limited by
shares, incorporated and domiciled in England and Wales under the
Companies Act 2006. Its registered office is 128 City Road, London,
England, EC1V 2NX. Its shares are quoted on the AIM market of the
London Stock Exchange.
The functional and presentational
currency is £ sterling because that is the currency of the primary
economic environment in which the group operates. Foreign
operations are included in accordance with the policies set out in
note 2.
These condensed interim financial
statements were approved for issue on 19 March 2024.
2. Accounting Policies and Basis of
Preparation
Basis of
Preparation
The interim financial statements for
the six months ended 31 December 2023 have been prepared using
accounting policies that are consistent with those of the audited
financial statements for the year ended 30 June 2023 and in
accordance with IAS 34, "Interim Financial Reporting" as adopted by
the United Kingdom. The interim financial information should be
read in conjunction with the Group's Annual Report and Accounts for
the year ended 30 June 2023, which has been prepared in accordance
with IFRS as adopted by the United Kingdom.
The interim financial information
contained in this report does not constitute statutory accounts
within the meaning of section 434 of the Companies Act
2006.
The Annual Report and Accounts for
the year ended 30 June 2023 has been filed with the Registrar of
Companies. The auditors' report on those accounts was unqualified,
however, they did note a material uncertainty with regards to going
concern, relating to the fact that the going concern basis of
preparation was dependent on certain growth targets being met
within 12 months from the date of signature of the Annual
Report.
Significant Accounting
Policies
The critical accounting policies and
presentation followed in the preparation of this interim report
have been consistently applied to all periods in these financial
statements and are the same as those applied in the Company's
Annual Report and Accounts for the year ended 30 June
2023.
A copy of the Annual Report and Accounts to 30 June
2023 can be obtained from the Company's website:
www.gfinityplc.com.
Critical Accounting
Judgements
The preparation of financial
statements in conforming with adopted IFRS requires management to
make judgements, estimates and assumptions that affect the
application of policies and reported amounts of assets,
liabilities, income and expenses. The estimates and assumptions are
based on historical experience and other factors considered
reasonable at the time, but actual results may differ from those
estimates. Revisions to these estimates are made in the period in
which they are recognised.
The critical accounting judgements
made in preparing this interim report are the same as those in
preparing the Annual Report and Accounts of
the Company for the year ended 30 June 2023 which can be obtained from the Company's website:
www.gfinityplc.com.
Going
Concern
At 31 December 2023 the group had
cash of £215,525.
Following the restructuring, as
explained in the Annual Report and Accounts to 30 June 2023, the
Company's sole focus is investing in and developing the Gfinity
Digital Media business.
As also fully set out in the 2023
Annual Report:
· The
Directors have prepared a base case cashflow forecast, which
assumes certain growth targets are met; and
· The
Directors consider that the growth targets are reasonable and
attainable, and in view of this, believe that the going concern
basis of preparation continues to be appropriate.
3. Profit per share
Basic earnings per share is
calculated by dividing the profit (previous periods - loss)
attributable to shareholders by the weighted average number of
ordinary shares in issue during the period.
For the 6 months to 31 December
2023, diluted EPS is shown below. For previous periods, for a
loss-making company with outstanding share options, net loss per
share would be decreased by the exercise of options and therefore
the effect of options has been disregarded in the calculation of
diluted EPS for those previous periods.
|
|
6 months to 31 December
2023
|
|
6 months to 31 December
2022
|
|
Year to 30 June
2023
|
|
All operations
|
£
|
|
£
|
|
£
|
|
Earnings
|
175,274
|
|
(1,774,279)
|
|
(10,254,836)
|
|
|
|
|
|
|
|
|
|
Number
|
|
Number
|
|
Number
|
|
|
000's
|
|
000's
|
|
000's
|
|
Weighted average number of ordinary
shares
|
3,139,024
|
|
1,315,697
|
|
1,735,789
|
|
|
|
|
|
|
|
|
Profit/(loss) per ordinary
share
|
0.006
|
|
(0.001)
|
|
(0.006)
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
|
175,273
|
|
(937,538)
|
|
(7,204,739)
|
|
|
|
|
|
|
|
|
Weighted average number of ordinary
shares
|
3,139,024
|
|
1,315,697
|
|
1,735,789
|
|
|
|
|
|
|
|
|
Profit/(loss) per ordinary share for
continuing operations
|
0.006
|
|
(0.0005)
|
|
(0.004)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
|
-
|
|
(960,200)
|
|
(3,050,097)
|
|
|
|
|
|
|
|
|
Weighted average number of ordinary
shares
|
-
|
|
1,315,697
|
|
1,735,789
|
|
|
|
|
|
|
|
|
Loss per ordinary share for
continuing operations
|
-
|
|
(0.0005)
|
|
(0.002)
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
|
175,273
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of ordinary
shares
|
3,556,412
|
|
|
|
|
|
|
|
|
|
|
Loss per ordinary share for
continuing operations
|
0.005
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
4. Revenue
The Group's policy on revenue
recognition is as outlined in note 2 of the financial statements
for the year ending June 2023. The period ending December 2023
included £Nil in the contract liability balance and at the
beginning of the period (December 2022: £58,359 and year ending
June 2023: £Nil).
The Group's revenue disaggregated by
primary geographical markets is as follows:
6
months to 31 December 2023
|
|
|
|
Total
|
|
|
|
|
£
|
|
United Kingdom
|
|
|
26,009
|
|
North America
|
|
|
679,559
|
|
ROW
|
|
|
100,713
|
|
|
|
|
|
|
Total
|
|
|
805,741
|
|
|
|
|
|
|
|
|
|
|
6
months to 31 December 2022
|
|
|
|
Total
|
|
|
|
|
£
|
|
United Kingdom
|
|
|
2,835,485
|
|
North America
|
|
|
828,298
|
|
ROW
|
|
|
444,155
|
|
|
|
|
|
|
Total
|
|
|
4,107,938
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
to 30 June 2023
|
|
|
|
Total
|
|
|
|
|
£
|
|
United Kingdom
|
|
|
2,830,620
|
|
North America
|
|
|
1,563,982
|
|
ROW
|
|
|
865,904
|
|
|
|
|
|
|
Total
|
|
|
5,260,506
|
|
|
|
|
|
|
|
|
|
|
| |
The Group's revenue disaggregated by
pattern of revenue of revenue recognition is as follows:
6
months to 31 December 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
£
|
|
Services transferred at
a point in time
|
|
|
805,741
|
|
Services transferred over
time
|
|
|
-
|
|
|
|
|
|
|
Total
|
|
|
805,741
|
|
|
|
|
|
|
|
|
|
| |
4.
Revenue (continued)
6
months to 31 December 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
£
|
|
Services transferred at
a point in time
|
|
|
2,316,694
|
|
Services transferred over
time
|
|
|
1,791,244
|
|
|
|
|
|
|
Total
|
|
|
4,107,938
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
to 30 June 2023
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
£
|
|
Services transferred at
a point in time
|
|
|
2,190,216
|
|
Services transferred over
time
|
|
|
3,233,355
|
|
|
|
|
|
|
Total
|
|
|
5,423,571
|
|
|
|
|
|
|
|
|
|
| |
5. Goodwill and Intangible Fixed
Assets
The Group holds goodwill in respect
of the acquisitions of the trade and assets of
Siege.gg, EpicStream and
RealSport in earlier periods. Additionally, the Group carries
goodwill in respect of the acquisition of Megit Limited, also in an
earlier period.
Further, the Group holds intangible
fixed assets in the form of Web platforms, which includes web
domains and platform technology acquired through the acquisitions
of Megit Limited, and the acquisitions of the trade and
assets of
Siege.gg and
EpicStream.
A comprehensive impairment review
was performed for the purposes of assessing the carrying value of
goodwill and intangible fixed assets as at 30 June 2023, using a
fair value method, on the basis of a multiple of revenue achieved
for the respective brands in the year ended 30 June
2023.
As a result of the close proximity
of the assessment of the carrying values undertaken as at 30 June
2023, and now, the Directors do not consider any further impairment
provisions are required, and it could be that some of the
previously made provisions for impairment could be
released.
A full review of the carrying values
for goodwill and intangible fixed assets will be undertaken at the
time of reporting on the full year results to 30 June
2024.