Half Yearly Report

RNS Number : 6417J

Gaming Realms PLC

16 June 2014

 



GAMING REALMS PLC

(the "Company" or the "Group")

Interim results for the six months ending 31 March 2014

Strategy execution translates into strong player acquisition and revenue growth.

Gaming Realms, which creates, publishes and markets next generation online gaming products, today announces its interim results for the six months ending 31 March 2014.

Operational highlights 

§ Revenue up 400% to £3.6 million for the six months to 31 March 2014 (FY13: £0.9m)

§ Acquisition of QuickThink Media for £2.3 million

§ Successful integration of QuickThink Media team into the Group resulting in a significant increase in player acquisitions and a reduction of 13% in average acquisition cost per new depositing player

§ Depositing players up 61% to 47,174 in Q2 (Q1/14: 29,291)

§ Daily active players increased 234% to 4,576 (Q4/13: 1,370)

§ Continuing strong player take-up with 76,465 new depositing players (FY13: 18,881)

§ Loss before taxation of £4.9 million which includes marketing spend of £5.2 million for the year to date as well as the cost of building internal gambling platform as per the company's stated strategy

§ The Company's year-end has been changed to 31 December and it will report on a 15 month period to 31 December 2014

Patrick Southon, Chief Executive, said:

"We are pleased with our growth in player acquisitions and revenue. In accordance with our business strategy and financial plan, we invested aggressively in marketing which has translated into a solid foundation for the future growth of our business. We remain focused on ensuring our product suite operates on an industry leading technology platform. In this regard, we are in the process of completing our next generation gaming platform to which we intend to migrate Pocket Fruity, our mobile casino, later this year. We expect the new gaming platform to deliver improved margins in addition to enabling us to introduce key aspects of our 'casual gaming' strategy.

Outlook

Gaming Realms is well positioned to continue its strong revenue growth and player acquisition, focusing on engaging customers on mobile devices while reducing CPA through the synergies in QuickThink Media and also the new platform features. Migration of the Group's products onto this new platform, with the initial launches during Q3 2014, is expected to improve overall profitability over the mid-term.

Accordingly the Board believes there are significant market opportunities ahead and remains confident of the Group's future prospects to achieve further progress in 2014 and beyond.

- Ends -

For more information contact:

Gaming Realms Patrick Southon, Chief Executive Mark Segal, Chief Financial Officer	[phone]
Cenkos Securities (Nominated Adviser) Max Hartley	[phone]
Bell Pottinger Olly Scott Charles Goodwin	[phone]

About Gaming Realms

Gaming Realms is an online gaming business formed in 2012 to develop a new generation of social bingo and slot machine gaming concepts.

Gaming Realms was founded by the team behind Cashcade, which created the leading online bingo brand, Foxy Bingo, in addition to other online bingo and casino games. The success of Cashcade culminated in its sale to bwin.party digital entertainment plc for a total consideration of approximately £96 million in 2009.

Business review

Summary of financial and operational activity

The Board is pleased to report that the Group has made good progress during the first half of its financial year. During the six month period, the Group delivered revenue of £3.6 million, up 400% over the same period last year and 49% over the previous quarter. At the same time the Group has continued to invest heavily in its marketing strategy. Total spend for the first half was £5.2 million which combined with operating costs resulted in a loss before taxation of £4.9 million consistent with the Group's operating plan.

The number of new depositing players rose 61% to 47,174 during Q2 while the number of daily active depositing players rose 234% in the last quarter to 4,576, (Q4/13: 1,370). The Group has continued to achieve strong player take-up with 76,465 new depositing players signed up in the first half (FY13: 18,881).

In December 2013, the Group acquired QuickThink Media ("QTM") for £2.3 million to help facilitate its strategy of marketing across digital channels and in particular Facebook. The Board can report that this acquisition has been successfully integrated into the Group and has been a major contributor to building player acquisition. The team in QTM have added great benefit already lowering the cost per active player ("CPA") on Pocket Fruity by 52%.

Bingo

Since the acquisition of QTM, the Group has launched its latest bingo product, Bubble Bonus Bingo. While still in its early stages, the Board is pleased with its performance and the lower CPA achieved on the back of the QTM acquisition.

The acquisition of QTM brought with it a number of brands which Gaming Realms now markets. One of the most notable performers has been Iceland Bingo which has become one of the UK's most popular bingo sites. Iceland Bingo's average daily revenue has increased by 53% compared to the average daily revenue 30 days pre-acquisition.

Casino

Pocket Fruity, the Group's real money mobile casino with 17 proprietary games, has delivered a strong performance during the period, supported by the further development of the product and algorithmic CRM which has led to a 41% increase in active daily players funding their accounts. The Group is currently planning to migrate Pocket Fruity onto its new proprietary platform, which is due to be delivered in the fourth quarter. This move is expected to enable greater scaling of the product whilst simultaneously increasing profit margins.

Social

During the period, the Group's Social gaming development activities focused on adding features on to real money games. These developments include in-game notification, special game levels and a collection bonus mechanism to increase game engagement and customer dwell time. During the second half, the Group plans to launch two exciting new brands, 'Lucky Charm' and 'Total Gold,' which will include these new Social developments. The launch of our own platform will enable all of the Group's proprietary products to bridge the gap with Social gaming, creating a fully integrated and richer gaming experience for customers.

Outlook

The Board remains confident that the Group is well positioned to maintain its strong growth trajectory and continued player acquisition. The strategy to engage users on new mobile devices while reducing CPA remains the management team's focus.

Part of the Group's mid-term term strategy is to develop a number of brands on its proprietary platform. As stated above, work has recently completed on its new licensed proprietary gambling platform, which should improve overall profitability following its launch in Q3 2014.

The Board has also taken the decision to move the Group's financial year end to 31 December. The rationale for this is to simplify the Group's reporting processes.

Consolidated statement of profit or loss and other comprehensive income

For the 6 months ended 31 March 2014

	Note	6 month ended 31 Mar 14		2 Jul 12 to 30 Sep 13
		£		£
		Unaudited		As restated
Revenue		3,551,925		881,060
Marketing expenses		(5,170,151)		(1,750,777)
Operating expenses		(679,126)		(348,260)
Administrative expenses		(2,080,254)		(1,105,366)
Adjusted EBITDA		(4,377,606)		(2,323,343)
Listing and acquisition costs		-		(436,341)
Share-based payments arising on reverse transaction	15	-		(431,392)
Share-based payments		(69,165)		(36,471)
EBITDA		(4,446,771)		(3,227,547)
Amortisation of intangible assets		(419,022)		(169,686)
Depreciation of property, plant and equipment		(15,119)		(3,015)
Finance expense	3	(13,840)		(3,313)
Finance income	3	2,794		1,886
Loss before tax on continuing operations		(4,891,958)		(3,401,675)
Tax expense	4	-		-
Loss and total comprehensive income for the financial period		(4,891,958)		(3,401,675)
Earnings per share
Loss per share
Basic and diluted (pence)	5	(3.15)		(9.34)

 

 

Consolidated statement of financial position

As at 31 March 2014

	Note	31 Mar 14			30 Sep 13
		£			£
Assets		Unaudited			As restated
Non-current assets
Property, plant and equipment		58,068			59,640
Goodwill	6	6,714,215			4,810,187
Intangible assets	6	1,310,065			1,105,471
Other assets	7	55,598			57,598
		8,137,946			6,032,896
Current assets
Trade and other receivables	8	1,934,838			1,344,776
Cash and cash equivalents	9	1,844,990			5,185,323
		3,779,828			6,530,099
Total assets		11,917,774			12,562,995
Current liabilities
Trade and other payables	10	2,127,615			1,890,331
Loans and borrowings	11	24,000			24,000
Deferred tax liability	13	85,719			-
		2,237,334			1,914,331
Non-current liabilities
Loans and borrowings	11	8,504			20,504
		8,504			20,504
Total liabilities		2,245,838			1,934,835
Net assets		9,671,936			10,628,160
Equity
Share capital	12		16,080,988		14,633,369
Share premium reserve			72,052,733		70,437,354
Shares to be issued	13		803,571		-
Merger reserve			(71,077,359)		(71,077,359)
Retained earnings			(8,187,997)		(3,365,204)
Total equity			9,671,936		10,628,160

 

 

Consolidated statement of cash flows

For the 6 months ended 31 March 2014

	Note	31 Mar 14		30 Sep 13
		£		£
		Unaudited		As restated
Cash flows from operating activities
Loss for the period		(4,891,958)		(3,401,675)
Adjustments for:
Depreciation of property, plant and equipment		15,119		3,015
Amortisation of intangible fixed assets	6	419,022		169,686
Finance income	3	(2,794)		(1,886)
Finance expense	3	4,171		3,313
Fair value adjustment to equity interest held		-		38,187
Share-based payment arising on reverse transaction		-		431,392
Share-based payment expense		69,165		36,471
Increase in trade and other receivables		(341)		(658,500)
Decrease in trade and other payables		(271,172)		(408,507)
Increase/(decrease) in other assets		2,000		(2,000)
Net cash flows from operating activities		(4,656,788)		(3,790,504)
Investing activities
Acquisition of subsidiary, net of cash acquired	13	(1,442,365)		119,622
Investments		-		(533,842)
Purchases of property, plant and equipment		(13,546)		(34,706)
Purchase of intangibles	6	(165,207)		(410,206)
Interest received	3	2,794		1,886
Net cash from investing activities		(1,618,324)		(857,246)
Financing activities
Acquisition of Gaming Realms plc, net of cash acquired		-		3,838,539
Proceeds of Ordinary Share issue	12	3,062,998		5,910,010
Issuance cost of shares		-		(30,016)
Repayment of other loans		(12,000)		(4,000)
Interest paid	3	(4,171)		(3,313)
Net cash from financing activities		3,046,827		9,711,220
Net (decrease)/increase in cash and cash equivalents		(3,228,285)		5,063,470
Cash and cash equivalents at beginning of period		5,063,470		-
Exchange losses on cash and cash equivalents		(9,763)		-
Cash and cash equivalents at end of period	9	1,825,422		5,063,470

 

Consolidated statement of changes in equity

For the 6 months ended 31 March 2014

	Share capital	Share premium		Shares to be issued	Merger reserve	Retained earnings (as restated)	Total equity (as restated)
	£	£		£	£	£	£
2 July 2012	-	-		-	-	-	-
Loss for the period	-	-		-	-	(3,401,675)	(3,401,675)
Issue of share capital	223,750	2,276,250		-	-	-	2,500,000
Adjustments in respect of reverse transaction	8,262,661	67,404,195		-	(72,134,521)	-	3,532,335
Shares issued as part of the consideration in a business combination	3,523,873	-		-	1,057,162	-	4,581,035
Shares issued as part of the capital raising	2,623,085	786,925		-	-	-	3,410,010
Cost of issue of Ordinary Share capital	-	(30,016)		-	-	-	(30,016)
Share-based payment  - Share options	-	-		-	-	36,471	36,471
30 September 2013 (as restated)	14,633,369	70,437,354		-	(71,077,359)	(3,365,204)	10,628,160
Loss for the period	-	-		-	-	(4,891,958)	(4,834,656)
Shares issued as part of the capital raising (note 12)	1,447,619	1,615,379		-	-	-	3,062,998
Shares to be issued (note 13)	-	-		803,571	-	-	803,571
Share-based payment  - Share options	-	-		-	-	69,165	69,165
31 March 2014 (Unaudited)	16,080,988	72,052,733		803,571	(71,077,359)	(8,187,997)	9,671,936

Notes forming part of the consolidated financial statements

For the 6 months ended 31 March 2014

1. Accounting policies

General Information

Gaming Realms plc ("the Company") and its subsidiaries (together "the Group").

The Company is admitted to trading on AIM of the London Stock Exchange. It is incorporated and domiciled in the UK. The address of its registered office is One Valentine Place, London SE18QH.

The results are unaudited to 6 months ended 31 March 2014. The comparative period is from the audited annual financial statements.

Basis of preparation

The financial information for the period ended 31 March 2014 does not constitute the full statutory accounts for that period. The Annual Report and Financial Statements for 2013 have been filed with the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Financial Statement for 2013 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

This interim report, which has neither been audited nor reviewed by independent auditors, was approved by the board of directors on 13 June 2014. The financial information in this interim report has been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards as adopted for use in the EU (IFRSs). The accounting policies applied by the Group in this financial information are the same as those applied by the Group in its financial statements for the period ended 30 September 2013 and which will form the basis of the 2014 financial statements. A number of new and amended standards have become effective for periods beginning on 1 October 2013, however none of these are expected to materially affect the Group.

The consolidated financial statements are presented in sterling.

The risks and uncertainties and significant estimates and judgements faced by the Group have not changed significantly since the 2013 Annual Report was published and are not expected to change significantly during the remaining six months of the financial year.

As detailed in note 15 the results for the period ended 30 September 2013 have been restated for adjustments arising from the reverse acquisition accounting.

2. Segment information

The Board is the Group's chief operating decision-maker. Management has determined the operating segments based on the information reviewed by the Board for the purposes of allocating resources and assessing performance. The Group has three reportable segments, being social gaming, real money gaming and marketing services. Each segment represent different brands, products and services provided. The social gaming segment operate the brands 5 Star Slot, AvaTingo and Sh*tHEAD and provide freemium gaming services to the US and Europe. The real money gaming segment operates the PocketFruity Segment in the UK. The marketing services segment represents the services provided to market the Bingo Godz, CastleJackpot, Iceland Bingo, Hippo Bingo and Bubble Bonus Bingo products. The marketing services segment also includes other online marketing services provided to other bingo and casino operators.

The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies.

The Board evaluates performance on the basis of segment loss. This measurement basis excludes head office costs not derived from operations of any segment and are only disclosed in total.

Reportable segment information

The Group has reportable segments as follows:

§ Real money gaming

§ Social gaming

§ Marketing services

	For the 6 months ended 31 March 2014 (Unaudited)
	Social gaming	Real money gaming	Marketing services*	Total
	£	£	£	£
Revenue	801,343	662,102	2,088,480	3,551,925
Marketing expenses	(607,058)	(417,152)	(4,123,049)	(5,147,259)
Operating expenses	(313,240)	(365,792)	(94)	(679,126)
Administration expenses - operating segments	(707,600)	(320,701)	(507,833)	(1,536,134)
Reportable segment loss	(826,555)	(441,543)	(2,542,496)	(3,810,594)

* including the acquisition of QTM

	For the period ended 30 September 2013
	Social gaming	Real money gaming	Marketing services	Total
	£	£	£	£
Revenue	442,837	217,196	221,027	881,060
Marketing expenses	(520,177)	(123,021)	(1,107,579)	(1,750,777)
Operating expenses	(239,070)	(109,190)	-	(348,260)
Administration expenses - operating segments	(235,521)	(159,444)	(444,969)	(839,934)
Reportable segment loss	(551,931)	(174,459)	(1,331,521)	(2,057,911)

Reconciliation of reportable segments to Group totals:

	2014 Unaudited		2013 As restated
	£		£
Total revenue from reportable segments, being total Group revenue	3,551,925		881,060
Total loss from reportable segments	(3,810,594)		(2,057,911)
Administration expenses - head office	(544,120)		(265,432)
Marketing expenses - head office	(22,892)
Listing costs	-		(436,341)
Amortisation of intangible assets	(419,022)		(169,686)
Depreciation of property, plant and equipment	(15,119)		(3,015)
Finance expense	(13,840)		(3,313)
Finance income	2,794		1,886
Share-based payments arising from reverse transaction	-		(431,392)
Share-based payments	(69,165)		(36,471)
Loss before tax	(4,891,958)		(3,401,675)

	As at 31 March 2014 (Unaudited)
	Social gaming	Real money gaming	Marketing services	Total
	£	£	£	£
Additions to non-current assets	5,544	3,814	1,722	11,080
Reportable segment assets	861,052	332,964	2,261,263	3,455,279
Head office assets				8,462,495
Total Group assets				11,917,774
Reportable segment liabilities	(273,351)	(514,548)	(1,156,692)	(1,944,591)
Head office liabilities				(301,247)
Total Group liabilities				(2,245,838)

	As at 30 September 2013
	Social gaming	Real money gaming	Marketing services	Total As restated
	£	£	£	£
Additions to non-current assets	794,880	120,169	307,662	1,222,711
Reportable segment assets	1,330,848	298,902	2,639,000	4,268,750
Head office assets				8,294,245
Total Group assets				12,562,995
Reportable segment liabilities	(702,107)	(427,128)	(323,144)	(1,452,379)
Head office liabilities (as restated)				(482,456)
Total Group liabilities (as restated)				(1,934,835)

Geographical information

The Group considers that its primary geographic regions are UK, including Channel Islands and Gibraltar, USA and the Rest of World. No revenue is derived from real money gaming in the USA. Revenues from customers outside the UK(including Channel Islands and Gibraltar) and USA are not considered sufficiently significant to warrant separate reporting. QTM revenues primarily relates to end users located in the UK and have been included in UK on that basis. All non-current assets are based in the UK.

The Group's performance can be reviewed by considering the geographical locations within which all assets in the Group operates. This information is outlined below:

	External revenue by location of customers		External revenue by location of customers		Non-current assets by location of assets		Non-current assets by location of assets
	2014		2013		2014		2013
	£		£		£		£
UK, including Channel Islands and Gibraltar	2,697,712		455,650		8,137,946		6,032,896
USA	601,619		323,128		-		-
Rest of the World	252,594		102,282		-		-
	3,551,925		881,060		8,137,946		6,032,896

3. Finance income and expense

	2014		2013
Finance income	£		£
Interest received	2,794		1,886
Total finance income	2,794		1,886
Finance expense
Bank interest expense paid	4,171		3,313
Foreign currency	9,669		-
Total finance expense	13,840		3,313

4. Tax expense

	2014		2013 As restated
	£		£
Loss for the period	(4,891,958)		(3,401,675)
Expected tax at effective rate of corporation tax in the UK of 23% (2013: 23.5%)	(1,125,150)		(799,394)
Expenses not deductible for tax purposes	1,822		90,664
Depreciation in excess of capital allowances	3,496		709
Tax losses carried forward	1,119,832		708,021
Total tax expense	-		-

There are unused tax losses carried forward as at the balance sheet date of £7,852,751 (2013 as restated: £6,732,919) equating to an unrecognised deferred tax asset of £1,806,133 (2013 as restated: £1,548,571). No deferred tax asset has been recognised in respect of these losses, as the recoverability of any asset is dependent upon sufficient profits being achieved in future years to utilise this asset. The timings of such profits are uncertain.

5. Loss per share

	2014		2013 As restated
	£		£
Loss after tax	(4,891,958)		(3,401,675)
	Number		Number
Weighted average number of Ordinary Shares used in calculating basic loss per share	155,081,243		36,434,501
Weighted average number of Ordinary Shares used in calculating dilutive loss per share	155,081,243		36,434,501
The weighted average number of ordinary shares in 2013 was calculated using an exchange ratio applied in the reverse takeover.
Basic and diluted loss per share (pence)	(3.15)		(9.34)

6. Intangible assets

	Goodwill	Customer database	Software		Development costs		Total
	£	£	£		£		£
Cost
Acquired through business combination	4,810,187	387,512	-		477,439		5,675,138
Additions	-	-	361,684		48,522		410,206
At 30 September 2013	4,810,187	387,512	361,684		525,961		6,085,344
Acquired through business combination (note 13)	1,904,028	458,409	-		-		2,362,437
Additions	-	-	-		165,207		165,207
At 31 March 2014	6,714,215	845,921	361,684		691,168		8,612,988
Amortisation
Amortisation charge	-	53,662	71,900		44,124		169,686
At 30 September 2013	-	53,662	71,900		44,124		169,686
Amortisation charge	-	218,284	60,280		140,458		419,022
At 31 March 2014	-	271,946	132,180		184,582		588,708
Net book value
At 30 September 2013	4,810,187	333,850	289,784		481,837		5,915,658
At 31 March 2014	6,714,215	573,975	229,504		506,586		8,024,280

7. Other assets

	2014		2013
	£		£
Other assets
	55,598		57,598

Other asset represents the rental deposit on an operating lease.

8. Trade and other receivables

	2014		2013
	£		£
Trade and other receivables	661,398		612,307
Prepayments and accrued income	1,273,440		732,469
	1,934,838		1,344,776

All amounts shown fall due for payment within one year

9. Cash and cash equivalents

	2014		2013
	£		£
Cash and cash equivalents	1,825,422		5,063,470
Restricted cash	19,568		121,853
	1,844,990		5,185,323

Restricted cash of £19,568 (2013: £121,853) relates to funds held in Swiss subsidiaries which are currently undergoing liquidation. The funds are restricted and are not included in the consolidated statement of cash flows.

10. Trade and other payables

	2014		2013 As restated
	£		£
Trade and other payables	1,226,074		574,582
Accruals	635,851		1,217,702
Player liabilities	265,690		98,047
	2,127,615		1,890,331

The carrying value of trade and other payables classified as financial liabilities measured at amortised cost approximates fair value.

 

11. Loans and borrowings

	2014		2013
	£		£
Current liabilities
Loans and borrowings	24,000		24,000
Non-current liabilities
Loans and borrowings	8,504		20,504

 

12. Share capital

Ordinary Shares

	2014		2013		2014		2013
	Number		Number		£		£
Ordinary Shares of 10 pence each	160,809,880		146,333,690		16,080,988		14,633,369

Movements in share capital

	Number		£
Bingo Realms Limited Ordinary Shares issued for cash consideration	2,237,500		223,750
Adjustments in respect of the reverse transaction	82,626,610		8,262,661
Ordinary Shares issued in the acquisition of Bejig Limited and AlchemyBet Limited	35,238,730		3,523,873
Ordinary Shares issued for cash consideration	26,230,850		2,623,085
At 30 September 2013	146,333,690		14,633,369
Ordinary Shares issued for cash consideration	14,476,190		1,447,619
At 31 March 2014	160,809,880		16,080,988

On 11 December 2013 11,476,190 shares were issued at £0.21 per share with costs of £37,000 associated with the share issue.

On 20 March 2014 3,000,000 shares were issued at £0.23 per share.

Ordinary B Shares and Deferred Shares

Ordinary B Shares have a nominal value of 0.01 pence each ("B Shares") and Deferred Shares have a nominal value of 0.01 pence each ("Deferred Shares"). The B Shares and the Deferred Shares shall not entitle the holders of them to receive notice of, to attend, to speak or to vote at any general meeting (including Annual General Meetings) of the Company. At 31 March 2014 there were no B Shares or Deferred Shares in issue.

 

 

13. Business combination during the period

On 10 December 2013, the Group acquired QTM, a company in which there are common shareholders and key management personnel, for an estimated total consideration of £2,274,421, comprising of £1,470,850 cash and a deferred payment of 3,571,428 ordinary shares being the equivalent of £803,571 at the time of acquisition to be allotted and admitted to trading 12 months from completion. The deferred payment has been recorded as shares to be issued at 31 March 2014. QTM is a specialist online gaming marketing agency which will enhance the Group's activities by cost-effectively capturing new users across emerging digital channels such as Facebook. Details of the fair value of identifiable assets and liabilities acquired and purchase consideration and goodwill are as follows:

	Book value	Adjustment	Fair value
	£	£	£
Non-contractual customer lists and relationships	-	458,409	458,409
Trade and other receivables	589,718	-	589,718
Cash	28,485	-	28,485
Trade and other payables	(620,500)	-	(620,500)
Deferred tax liability	-	(85,719)	(85,719)
Total net assets	(2,297)	372,690	370,393

Fair value of consideration paid

	£
Cash consideration	1,470,850
Deferred consideration - Gaming Realms plc Ordinary Shares	803,571
Total consideration	2,274,421
Goodwill (Note 6)	1,904,028

Goodwill recognised in the acquisition of QTM relates to the presence of certain intangible assets such as an experienced workforce, which do not qualify for separate recognition.

14. Events after reporting date

On 16 May 2014, the Group incorporated a company in Alderney, Bear Group Limited. The Group is currently in the process of applying for an Alderney Gambling License.

15. Business combination completed in prior periods

During the financial period ending 31 March 2014, it was identified that the net assets acquired on the 1 August 2013 as part of the reverse acquisition, did not include an additional liability to the Swiss tax authorities of £112,044. The liability arose as part as part of the ongoing liquidation process of the existing Swiss entities. The results of prior year financials have been restated to include the liability to the Swiss tax authorities in accruals at 30 September 2013 with a corresponding increase to the share based payment charge on the reverse transaction in 2013.  

Details of the (restated) fair value of the asset and liabilities of the Company that were acquired on its acquisition by Bingo Realms Limited are as follows:

	2013 As previously stated		Restated adjustment		2013 As restated
	£		£		£
Share-based payment expense
Assets and liabilities acquired:
Cash and cash equivalent	3,960,392		-		3,960,392
Trade and others receivables	165,879		-		165,879
Other assets	8,383		-		8,383
Trade and others liabilities	(921,667)		(112,044)		(1,033,711)
	3,212,987		(112,044)		3,100,943

The fair value of shares that Bingo Realms Limited issued to effect the transaction amounted to £3,532,335. The difference between the fair value of £3,532,335 and the restated net assets acquired of £3,100,943, being £431,392 has been expensed as a share-based payment cost in profit or loss of the 2013 financial statements.

 

END

 

 

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