Final Results

RNS Number : 6931P
Best of the Best PLC
10 June 2015
 

 

Best of the Best plc

("Best of the Best", "the Company" or "the Group")

 

Preliminary results for the twelve months ended 30 April 2015

 

 

 

 

Best of the Best plc ("BOTB") runs competitions to win luxury prizes both online and at retail locations

 

 

Key Highlights 

 

·              Revenue up 25.7% to £8.8 million (2014: £7.0 million)

 

·              Profit before tax increased to £0.81 million (2014: £0.45 million)

 

·              Net Assets of £2.09 million, of which cash balances total £1.91 million

 

·              Online revenues increased by 57.5% to £5.0 million (2014: £3.19million) - representing 57.3% of total                revenue

 

·              Successful move to a weekly car competition (previously one every two weeks)

 

·              Special dividend of 14.5 pence per share amounting to approximately £1.32 million, pursuant to a court approved capital reduction, paid to shareholders on 19 December 2014

 

 

 

William Hindmarch, Chief Executive, said:

 

 

"I am pleased to announce an encouraging set of preliminary results with increasing revenues and profits.  This has been a positive year for the business as we have increasingly become an online business.

 

We spent much of the year gradually increasing our online marketing investment, as we tested multiple online marketing channels to recruit online players to help us to scale the business. It is our intention to further increase our marketing investment in the current financial year.

 

Our significant move to operating a weekly car competition (previously once every two weeks), with a guaranteed winner, has been well received by existing customers as well as aiding the acquisition and conversion of new customers, both at airports and online.

 

The business is well placed for future growth and we look forward to updating shareholders on progress in due course."

 

 

 

Enquiries:

 

Best of the Best plc

William Hindmarch, Chief Executive

Rupert Garton, Commercial Director

T: 020 7371 8866




KTZ  Communications

Katie Tzouliadis

T: 020 3178 6378




Charles Stanley Securities

(Nominated Adviser)

Mark Taylor

 

T: 020 7149 6000

 

Please visit www.botb.com for further information

 

 

Chief Executive's Statement

 

I am pleased to announce an encouraging set of preliminary results with increasing revenues and profits.  This has been a positive year for the business as we have increasingly become an online business.

 

We spent much of the year gradually increasing our online marketing investment, as we tested multiple online marketing channels to recruit online players to help us to scale the business. It is our intention to further increase our marketing investment in the current financial year.

 

Our significant move to operating a weekly car competition (previously once every two weeks), with a guaranteed winner, has been well received by existing customers as well as aiding the acquisition and conversion of new customers, both at airports and online.

 

 

Results

 

Revenue for the twelve months ended 30 April 2015 increased by 25.7 per cent to £8.8 million (2014: £7.0 million) and profit before tax rose to £0.81 million (2014: £0.45 million)

 

The Company generated £1.32 million of operating cash flow in the period.  Net assets at 30 April 2015 stood at £2.09 million (2014: £2.87 million) and principally comprise cash of £1.91 million, our stock of cars on display which are held at a net realisable value of £0.50 million, and our 970 year leasehold office properties valued at £0.95 million.

 

As previously announced a 14.5 pence special dividend amounting to approximately £1.32 million, was paid to shareholders on 19 December 2014 pursuant to a court approved capital reduction. 

 

Following a recent VAT decision at the First-tier Tribunal concerning a company with similar activities in our sector, the Company has submitted a protective claim to recover overpaid VAT amounting to £2.20 million (exclusive of professional fees and expenses). At present this VAT litigation has not been concluded. It is therefore not certain that the Company will receive any repayment from HM Revenue & Customs. We will update shareholders as this matter progresses.

 

 

Dividend

 

The Board is recommending a final dividend of 1.2 pence per share (2014: 1.1 pence) for the full year ending 30 April 2015 subject to shareholder approval at the Annual General Meeting on 23 September 2015.  The final dividend will be paid on 16 October 2015 to shareholders on the register on 24 September 2015.

 

 

New Player Acquisition

 

The Company has a multi channel approach to acquiring new players.  One of the key channels for this is our airport and shopping centre locations.  The locations build strong brand awareness as well as providing significant opportunities for player acquisition.

 

The Company is currently operating from 8 airport sites and 2 shopping centre sites.  Our airport locations are at Gatwick North, Gatwick South, Birmingham, Manchester Terminals 1 and 2, Edinburgh, Copenhagen and Dublin's Terminal 2.  Our shopping centre sites are both in London at the Westfield shopping centres in Shepherd's Bush and Stratford.  These locations have traded steadily throughout the year and initiatives have been undertaken to ensure we are recruiting as many new players as possible from these sites.

 

During this year we will be continuing to invest in these locations to improve the experience and audio visual capabilities.  We are installing 4G enabled screens to enable us to quickly disseminate our weekly winner videos, which we have learned are very powerful for acquiring new customers.

 

 

 

 

 

 

 

Moving to a weekly competition has increased both the participation and contribution of regular customers, but has also facilitated the recruitment of new customers, particularly online.  Customers acquired online now exceed the number of players who convert to play online, having first entered at a physical site.   The frequency of winners, increased marketing spend, and the positive publicity surrounding the filming and associated public relations activity have combined to make our competitions more appealing to both new and existing customers.

 

Our website has been incrementally improved throughout the year, whilst our mobile (iOS and android) applications and mobile optimized website have also been launched in beta.  During the coming year we will be investing in a full rebuild of our website and IT operating systems, last undertaken in 2009.  We anticipate this rebuild facilitating the launch of new functionality, whilst ensuring that we operate from a modern IT platform which will enable us to evolve and develop at sufficient pace.  As part of this development, there will be a renewed focus on loyalty, retention and community to reward our regular customers over the shortened competition lifecycle.

 

Social marketing continues to be a powerful channel for the business, both in terms of customer service and credibility, but also player acquisition.  Our Facebook page now has over 120,000 followers, with many of them very active and www.botb.com recorded an average of over 130,000 unique visitors per month.  Activity on all social channels is expected to be scaled up this year with increased marketing spend across the spectrum.

 

We look forward to the continued growth in player acquisition, through our airport and shopping centre locations, and through our increased focus on online channels.

 

 

Outlook

 

Best of the Best has increased revenues and profits, is cash generative and is supported by a robust balance sheet.  In the current financial year, the Board will focus on executing an increased multi channel digital marketing plan, whilst ensuring that this strategy provides a suitable return on investment. 

 

I believe the business is well positioned for the remainder of the financial year, and I look forward to updating shareholders on further progress in due course.

 

 

 

William Hindmarch

Chief Executive

10 June 2015

 

 

 

 

 


BEST OF THE BEST PLC


Consolidated Income Statement

For The Year Ended 30th April 2015


BEST OF THE BEST PLC


Consolidated Statement of Financial Position

30th April 2015

 

 

 

BEST OF THE BEST PLC

 

                                                        Consolidated Statement of Changes in Equity

                                                                 For The Year Ended 30th April 2015

 

 

 

 

 

 

 

 

 

 

Called up

 

Profit

 

 

 

share

 

and loss

 

Share

 

capital

 

account

 

premium

 

£'000

 

£'000

 

£'000

 

 

 

 

 

 

Balance at 1 May 2013

468

 

183

 

1,783

 

 

 

 

 

 

Changes in equity

 

 

 

 

 

Issue of share capital

(14)

 

-

 

-

Dividends

-

 

(94)

 

-

Total comprehensive income

-

 

355

 

-

 

 

 

 

 

 

Balance at 30 April 2014

454

 

444

 

1,783

 

 

 

 

 

 

Changes in equity

 

 

 

 

 

Issue of share capital

-

 

-

 

-

Share Premium capital reduction

-

 

1,783

 

(1,783)

Treasury share cancellation

-

 

(161)

 

-

Dividends

-

 

(1,419)

 

-

Total comprehensive income

-

 

643

 

-

 

 

 

 

 

 

Balance at 30 April 2015

454

 

1,290

 

-

 

 

 

 

 

 

 

 

Capital

 

 

 

 

 

 

 

redemption

 

Other

 

Treasury

 

Total

 

reserve

 

Reserves

 

Shares

 

equity

 

£'000

 

£'000

 

£'000

 

£'000

 

 

 

 

 

 

 

 

Balance at 1st May 2013

183

 

148

 

-

 

2,765

 

 

 

 

 

 

 

 

Changes in equity

 

 

 

 

 

 

 

Issue of share capital

-

 

-

 

-

 

(14)

Dividends

-

 

-

 

-

 

(94)

Total comprehensive income

14

 

-

 

(161)

 

208

 

 

 

 

 

 

 

 

Balance at 30th April 2014

197

 

148

 

(161)

 

2,865

 

 

 

 

 

 

 

 

Changes in equity

 

 

 

 

 

 

 

Issue of share capital

-

 

-

 

-

 

-

Share Premium capital reduction

-

 

-

 

-

 

-

Treasury share cancellation

-

 

-

 

161

 

-

Dividends

-

 

-

 

-

 

(1,419)

Total comprehensive income

-

 

-

 

-

 

643             

 

 

 

 

 

 

 

 

Balance at 30th April 2015

197

 

148

 

-

 

2,089

 

 

 

 

 

 

 

 

 

 

                 

 

 

BEST OF THE BEST PLC


Consolidated Cash Flow Statement

For The Year Ended 30th April 2015

                                                        BEST OF THE BEST PLC

 

Notes to the Consolidated Cash Flow Statement

For The Year Ended 30th April 2015

BEST OF THE BEST PLC

 

Notes to the Preliminary Announcement

For The Year Ended 30th April 2015

The Company has applied the requirements of IFRS 2 to share option schemes allowing certain employees within the Company 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 options 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 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.

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 these financial statements.

 

 

IFRS8 "Operating Segments", which came into effect not later than accounting periods beginning on 1 January 2009, requires identification and reporting of operating segments on the basis of internal reports that are regularly reviewed by the Board in order to allocate resources to the segment and assess its performance. The Company assessed the impact of IFRS8 and concluded that it would not impact the segments identified in this interim report.

 

643

9,099,052

7.09

355

9,217,961

3.84

The total number of options and warrants granted at 30 April 2015 of 1,106,528 would generate £274,826 in cash if exercised. At 30 April 2015, 1,106,528 were priced above the mid-market closing price of 72.542p per share. 449,528 of these options are vested after 30 April 2015. 657,000 options vested on 26/4/15 but have yet to be exercised.

 

 

8.          RESERVES

 

            



Capital





Retained

Share

redemption

Other

Treasury



Earnings

Premium

reserve

reserves

shares

Totals


£'000

£'000

£'000

£'000

£'000

£'000








At 1 May 2014

444

1,783

197

148

(161)

2,411

Profit for year

643

-

-

-

-

643

Dividends

(1,419)

-

-

-

-

(1,419)

Treasury shares

(161)

-

-

-

161

-

Capital reduction

1,783

(1,783)

-

-

-

-

At 30 April 2015

1,290

-

197

148

-

1,635

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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