Final Results
Best of the Best plc
("Best of the Best" or "the Company")
Preliminary results for year ended 30 April 2012.
Best of the Best plc displays luxury cars as competition prizes within retail locations and online.
Key points
· Revenue from continuing operations increased 18% per cent to £5.60 million (2011: £4.74 million)
· Loss before tax from continuing operations £0.18 million (2011 profit: £0.07 million)
· Current cash balance of £1.10 million and Net Assets of £2.76 million
· 5 Shopping centre sites opened
· 6 airport sites refurbished with a flexible, smaller format with encouraging results
· David Coulthard (13 times F1 winner) hired as brand ambassador
· Successful changes to competition structures with further enhancements planned
· Tender Offer completed in November 2011, resulting in £1.18m being returned to shareholders
William Hindmarch, Chief Executive, said:
"In light of the significant impact faced by the business as a result of the loss of its Heathrow sites, and the consequent impact on customer acquisitions for the online business, I am pleased with the progress we have made. During the second half of the financial year the Company traded close to breakeven and we are now taking further positive steps to restore profitability.
During the period we opened 5 new shopping centres sites and refitted six of our airport terminals. David Coulthard, (13 times F1 winner) has been contracted as a brand ambassador to promote the Company and together, these have contributed to an 18% increase in total turnover. The online business is benefitting from changes made to competition structures, categories and variants, resulting in a larger and much more active player base than 12 months ago.
Following the tender offer in November 2011 the balance sheet remains strong with a cash balance in excess of £1.1 million. We are optimistic about the future prospects of the company and look forward to updating shareholders in due course"
Enquiries:
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Best of the Best plc |
William Hindmarch, Chief Executive Rupert Garton, Commercial Director |
T: 020 7371 8866 |
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Biddicks |
Zoe Biddick |
T: 020 3178 6378 |
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Charles Stanley Securities (Nominated Adviser) |
Mark Taylor
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T: 0207 149 6000 |
Please visit www.botb.com for further information
Chief Executive's Statement
In light of the significant impact the business faced with the loss of its Heathrow sites, I am pleased with the progress we have made to date. During the second half of the financial year the Company traded close to breakeven and we are now taking further positive steps to restore profitability.
The airport business has traded steadily throughout the year, despite the tough economic climate, and has been bolstered by the addition of 5 shopping centre sites. Offline sales for continuing operations increased by 27 per cent compared to the prior period and we are encouraged by the diversification of these revenues, with shopping centres now accounting for some 20 per cent of the total from physical sites.
The online business which accounted for some 34 per cent of total revenues in the period is benefitting from the changes we have made to competition structures, categories and variants, resulting in a larger and much more active player base. Our website and gameplay have recently been updated to support mobile devices and we have already begun to see the benefits - a trend we expect to accelerate.
Results
Revenue from continuing operations for the twelve months ended 30 April 2012 increased by 18% per cent to £5.60 million (2011: £4.74 million). The Company recorded a loss before tax from continuing operations for the period of £0.18 million (2011 profit: £0.07 million).
Following the Tender Offer and subsequent repurchase of shares in November 2011 (resulting in £1.18m being returned to shareholders), cash balances have reduced but currently remain in excess of £1.10 million (2011: £2.74 million).
Our net assets stood at £2.76 million (2011: £4.28 million), which principally comprise cash, our stock of cars on display which are held at net realisable value of £0.93 million, and our 997 year leasehold office property valued at £0.46 million.
Dividend
The Board is recommending a final dividend of 0.8 pence per share for the full year ending 30 April 2012 subject to shareholder approval at the AGM on 20 September 2012. The final dividend will be paid on 15 October to shareholders on the register on 21 September.
Business at physical locations
The Company is currently trading from 10 airport sites, and five sites in shopping centres. Our airport locations are Gatwick North and South, Stansted, Luton, Birmingham, Manchester Terminals 1 and 2, Edinburgh, Copenhagen and Dublin's Terminal 2. Our shopping centre locations are Westfield Shepherds Bush, Westfield Stratford, Westfield Derby, Lakeside and Bluewater.
The airport locations have traded steadily throughout the year, despite the tough economic climate, and have benefitted from the programme of site refurbishments that have been undertaken during the period. Six sites have now been refurbished using a smaller, cleaner and more flexible format which has been well received by both airport operators and customers. Furthermore, we have been able to exhibit significantly increased sales per square foot, which is a key metric for airport operators.
The shopping centres have performed in line with expectations, with the best locations generating revenues similar to an average airport, despite the much shorter trading day. We continue to monitor their performance and to evaluate the possibility of opening further locations in the future.
Online Business
Online sales accounted for 34 per cent of total revenue in the period and were up 4.3 per cent compared to the same period last year. Whilst only showing a modest increase on prior year, we believe this is a worthy result, given the substantial loss of customer registrations, and therefore online players, from the BAA Heathrow sites.
As previously reported, we made significant changes nine months ago to the pricing structure of the principal supercar competition, to help improve customer acquisition at physical sites, and increase online conversion rates. There was a concern that in the short term the effect of lower average order values could actually erode revenues. I am, however, pleased to say that this has not occurred, and that average order values have stabilized, whilst the number of online transactions we are processing is up 55.0 per cent compared to the same period in the prior year.
David Coulthard, (13 times F1 winner) has been contracted as a brand ambassador to promote the Company both at the physical sites and online, where we anticipate his association can strengthen the credibility of our brand and help attract and educate new customers.
We are also working on a major product initiative for release later in the year through which customers will be able to enter the main car competition from as little as £2 and will be able to choose from a range of circa 130 premium cars - employing the concept that you can almost 'Win any Car'. This strategy has been led by customer feedback that has suggested there is increasingly an appetite for more accessible competitions, with a wider range of prices, a more regular cycle, and with the ability to enter quickly and easily from mobile devices.
Our website and gameplay have recently been updated to enable customers to play using iPad, iPhone and other mobile devices and we have already begun to see the benefits - a trend we expect to accelerate. A beta version of our first app for iOS was accepted into the Apple App Store, and will be developed over the coming months in conjunction with the 'Win any Car' concept.
We have made excellent progress with our social marketing, and this will form a key cornerstone of our online marketing in the current year. We have identified great opportunities to integrate our new 'customer led' competitions with social media and will be allocating resources accordingly.
Outlook
The past financial year has been a difficult one for the Company, as we have adjusted to loss of BAA contracts (which represented 48 per cent of our income from physical sites). However, we have made significant steps in returning the business to profitability, through a combination of reducing overheads, restructuring competitions, introducing new products, opening new outlets and acquiring new customers online.
Following the tender offer in November 2011, the balance sheet remains strong with a cash balance in excess of £1.10 million, and having stabilized the core business, we are looking forward to the year head with some exciting future developments, especially online.
I look forward to updating shareholders in due course.
William Hindmarch
Chief Executive
25 June 2012
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BEST OF THE BEST PLC |
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Consolidated Income Statement |
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For The Year Ended 30th April 2012 |
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_____________________________________________________________________________________________________ |
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2012 |
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2011 |
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Notes |
£'000 |
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£'000 |
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CONTINUING OPERATIONS |
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Revenue |
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5,599 |
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4,737 |
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Cost of sales |
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(2,249) |
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(1,922) |
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_______ |
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_______ |
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GROSS PROFIT |
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3,350 |
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2,815 |
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Administrative expenses |
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(3,566) |
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(2,766) |
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_______ |
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_______ |
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OPERATING PROFIT |
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(216) |
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49 |
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Finance income |
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32 |
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25 |
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_______ |
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_______ |
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(LOSS) / PROFIT BEFORE TAX |
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(184) |
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74 |
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Tax |
5 |
60 |
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(17) |
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_______ |
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_______ |
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(LOSS) / PROFIT FOR THE YEAR FROM CONTINUING OPERATIONS |
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(124) |
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57 |
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Profit for the year on discontinued Operations |
6 |
- |
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75 |
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(LOSS) / PROFIT FOR THE YEAR |
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(124) |
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132 |
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_______ |
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_______ |
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Loss on earnings per share expressed |
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in pence per share: |
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Basic |
7 |
(1.17) |
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1.13 |
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Diluted |
7 |
(1.17) |
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1.11 |
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Discontinued operations |
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Basic |
7 |
(1.17) |
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0.65 |
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Diluted |
7 |
(1.17) |
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0.59 |
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As all option prices exceed the average share price no options would expect to be granted and there is therefore no dilution to the earnings per share this year. |
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BEST OF THE BEST PLC |
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Consolidated Statement of Comprehensive Income |
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For The Year Ended 30th April 2012 |
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_____________________________________________________________________________________________________ |
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2012 |
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2011 |
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Notes |
£'000 |
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£'000 |
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(LOSS) / PROFIT FOR THE FINANCIAL YEAR |
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(124) |
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132 |
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SHARE REPURCHASE AGREEMENT |
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(1,278) |
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- |
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_______ |
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_______ |
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TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
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(1,402) |
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132 |
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_______ |
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_______ |
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BEST OF THE BEST PLC
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Consolidated Statement of Financial Position
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30th April 2012
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_____________________________________________________________________________________________________
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2012
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2011
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Notes
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£’000
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£’000
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ASSETS
NON-CURRENT ASSETS
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Property, plant and equipment
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950
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833
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Deferred tax
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109
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124
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_______
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_______
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1,059
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957
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CURRENT ASSETS
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Inventories
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933
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1,275
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Trade and other receivables
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294
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171
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Cash and cash equivalents
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1,103
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2,744
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_______
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_______
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2,330
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4,190
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TOTAL ASSETS
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3,389
g
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5,147
g
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EQUITY
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SHAREHOLDERS' EQUITY
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Called up share capital
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8
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468
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548
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Share premium
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9
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1,783
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1,783
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Capital redemption reserve
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9
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183
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88
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Share-based payment reserve
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9
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148
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148
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Retained earnings
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9
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181
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1,715
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_______
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_______
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TOTAL EQUITY
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2,763
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4,282
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_______
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_______
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LIABILITIES
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CURRENT LIABILITES
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Trade and other payables
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705
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700
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Tax payable
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(79)
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165
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_______
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_______
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TOTAL LIABILITIES
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626
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865
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_______
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_______
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TOTAL EQUITY AND LIABILITIES
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3,389
g
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5,147
g
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BEST OF THE BEST PLC
Consolidated Statement of Changes in Equity
For The Year Ended 30th April 2012
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Called up Profit
share and loss Share
capital account premium
aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa£'000 aaaaaaaaaa£'000 aaaaaaaaa£'000
Balance at 1 May 2010 636 1,715 1,783
Changes in equity
Redemption of share capital (88) - -
Dividends - (132) -
Total comprehensive income - 132 -
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Balance at 30 April 2011 548 1,715 1,783
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Changes in equity
Issue of share capital 15 - -
Redemption of share capital (95) - -
Dividends - (132) -
Total comprehensive income - (1,402) -
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Balance at 30 April 2012 468 181 1,783
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Capital
redemption Other Total
reserve reserves equity
£'000 £'000 £'000
Balance at 1 May 2010 - 148 4,282
Changes in equity
Redemption of share capital - - (88)
Dividends - - (132)
Total comprehensive income 88 - 220
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Balance at 30 April 2011 88 148 4,282
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Changes in equity
Issue of share capital - - 15
Redemption of share capital - - (95)
Dividends - - (132)
Total comprehensive income 95 - (1,307)
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Balance at 30 April 2012 183 148 2,763
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BEST OF THE BEST PLC |
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Consolidated Cash Flow Statement |
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For The Year Ended 30th April 2012 |
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_____________________________________________________________________________________________________ |
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2012 |
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2011 |
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Cash flows from operating activities |
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£'000
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£'000
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Cash generated from operations |
1 |
249 |
|
474 |
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Tax paid |
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(168) |
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(126) |
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_______ |
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_______ |
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Net cash from operating activities |
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81 |
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348 |
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Cash flows from investing activities |
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Purchase of tangible fixed assets |
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(366) |
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(314) |
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Impairment losses |
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7 |
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527 |
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Interest received |
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32 |
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25 |
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_______ |
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_______ |
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Net cash from investing activities |
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(327) |
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238 |
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Cash flows from financing activities |
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Equity dividends paid |
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(132) |
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(132) |
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Share tender offer and movement in share capital |
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(1,263) |
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- |
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_______ |
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_______ |
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Net cash from financing activities |
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(1,395) |
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(132) |
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(Decrease)/Increase in cash and cash equivalents |
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(1,641) |
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454 |
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Cash and cash equivalents at beginning of year |
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2,744 |
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2,290 |
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_______ |
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_______ |
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Cash and cash equivalents at end of year |
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1,103 |
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2,744 |
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_______ |
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_______ |
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BEST OF THE BEST PLC
Notes to the Consolidated Cash Flow Statement
For The Year Ended 30th April 2012
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1. |
RECONCILIATION OF PROFIT BEFORE TAX TO CASH GENERATED FROM OPERATIONS |
2012 2011
£'000 £'000
Profit before tax (184) 173
Depreciation charges 241 268
Finance income (32) (25)
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25 |
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416 |
Decrease in inventories 342 146
Decrease in trade and other receivables (123) (61)
Decrease in trade and other payables 5 (27)
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Cash generated from operations |
249 |
474 |
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BEST OF THE BEST PLC
Notes to the Preliminary Announcement
For The Year Ended 30th April 2012
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1. BASIS OF PREPARATION
The financial information has been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards as adopted by the EU (Adopted IFRS's) and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS. The financial statements have been recorded under the historical cost convention.
The financial information set out above does not constitute the Group's statutory accounts for the years ended 30th April 2012 or 2011. The statutory accounts for 2012 will be delivered to the registrar of companies in due course.
2. BASIS OF CONSOLIDATION
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiary undertakings). Where necessary, adjustments are made to the financial statements of the subsidiaries to bring their accounting policies in line with the Group. All intra-group transactions, balances, income and expenses are eliminated on consolidation.
3. ACCOUNTING POLICIES
The preliminary financial information has been prepared using accounting policies set out in the Group's statutory accounts for the year ended 30th April 2012.
FRS 20 'Share-based payment' was adopted for the first time during the 2007 year end. Under this standard, an expense is recognised in the income statement when the Group receives goods or services in exchange for shares or where the valuation of those goods or services incorporates the performance of the Group's share price. The income statement includes a charge for share-based payments of £nil (2011: £nil).
Revenue represents the value of tickets sold in respect of competitions which have been completed at the accounting date. A competition is completed when the Group closes entries.
4. SEGMENTAL REPORTING
The directors consider that the primary reporting format is by business segment and that there is only one such segment being that of competition operators. This disclosure has already been provided in this preliminary report. All of the Group's material operations are located in the United Kingdom.
5. TAX
Analysis of the tax charge
2012 2011
£'000 £'000
Current tax:
Tax (93) 165
Under/(over) provision in prior year 17 (22)
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Total current tax (76) 143
Deferred tax 16 (103)
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Total tax charge in income statement (60) 40
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6. |
Discontinued operations |
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As per the release dated 11th October 2010, BAA Airports Limited terminated a majority of the ongoing concession agreements with Best of the Best Plc and as a result, Best of the Best Plc received a termination payment of £750,000. This was included within other discontinued income during the year ended 30th April 2011.
Associated costs with regards to the closure of the BAA sites included an asset impairment provision of £526,956 and additional wages and legal costs of £118,424, all included within discontinued admin expenses.
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7. LOSS ON EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.
Diluted earnings per share is calculated using the weighted average number of shares adjusted to assume the conversion of all dilutive potential ordinary shares. The Group has one category of dilutive potential ordinary shares: share options. For the share options a calculation is performed to determine the number of shares that could have been acquired at fair value (determined as the average annual market share price of the Group's shares) based on the monetary value of the subscription rights attached to outstanding share options. The number of shares calculated as above is compared with the number of shares that would have been issued assuming the exercise of the share options.
Reconciliations are set out below.
2012
Weighted
average
number Per-share
Earnings of amount
£'000 shares pence
Loss on basic EPS
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Earnings attributable to ordinary shareholders |
(124) |
10,633,032 |
(1.17) |
Effect of dilutive securities
Options - -
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Diluted EPS
Adjusted earnings (124) 10,633,032 (1.17)
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2011
Weighted
average
number Per-share
Earnings of amount
£'000 shares pence
Basic EPS
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Earnings attributable to ordinary shareholders |
132 |
11,697,421 |
1.13 |
Effect of dilutive securities
Options - 248,986
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Diluted EPS
Adjusted earnings 132 11,946,407 1.11
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The average share price for the year ended 30th April 2012 was £0.21. As all option prices exceed the average share price no options would expect to be granted and therefore no dilution to the earnings per share this year. |
8. CALLED UP SHARE CAPITAL
Authorised:
Number: Class: Nominal 2012 2011
value: £'000 £'000
30,000,000 Ordinary shares 5p 1,500 1,500
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Allotted, issued and fully paid:
Number: Class: Nominal 2012 2011
value: £'000 £'000
9,372,100 Ordinary shares 5p 467 548
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Capital redemption:
Number: Class: Nominal 2012 2011
value: £'000 £'000
3,658,980 Ordinary shares 5p 183 88
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In the previous period 1,750,000 shares owned by BAA Airports Limited were cancelled and an amount of £87,500 has been credited to the capital redemption reserve.
Share options were exercised 10th November 2011 resulting in a further 312,765 ordinary shares being issued. During the year the Company also purchased 34,500 of its own ordinary shares at a price of 19 pence per ordinary share. The ordinary shares purchased were held in treasury.
On 20th February 2012, 1,874,419 Ordinary Shares purchased under the Repurchase Agreement were cancelled at a cost of £1,180,884 equating to 63 pence per share. This combined with the 34,500 Ordinary Shares that were previously held in Treasury has led to a further £95,446 being transferred to the Capital Redemption Reserve.
9. RESERVES
Capital
Retained Share redemption Other
earnings premium reserve reserves Totals
£'000 £'000 £'000 £'000 £'000
|
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At 1 May 2011 |
1,715 |
1,783 |
88 |
148 |
3,734 |
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Profit for the year |
(124) |
(124) |
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Dividends (132) (132)
Share tender offer (1,278) - 95 - (1,183)
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|
|
|||||||
|
|
At 30 April 2012 |
181 |
1,783 |
183 |
148 |
2,295 |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
10. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
2012 2011
£'000 £'000
(Loss)/Profit for the financial year (124) 132
Issue of share capital 15 -
Redemption of share capital (1,278) -
Dividends (132) (132)
|
(1,519) |
|
- |
Net addition to shareholders' funds
Opening shareholders' funds 4,282 4,282
|
|
|
|
Closing shareholders' funds 2,763 4,282
|
|
|
|
11. The financial information set out above for the years ended 30th April 2012 and 2011 does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 2006. Statutory accounts for 30th April 2011 have been delivered to the Registrar of Companies and those for 30th April 2012 will be delivered following the Company's annual general meeting. The Company's auditors have reported on the full accounts for both years and have accompanied each year with an unqualified report.
12. The annual report and accounts will be posted to shareholders shortly and will be available for members of the public at the Company's registered office, 2 Plato Place, St Dionis Road, London, SW6 4TU, and on the Company's website: www.botb.com.
13. The Annual General Meeting will be held on 20th September 2012 at the offices of Charles Stanley Securities, 25 Luke Street, London, EC2A 4AR.
This information is provided by RNS
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