Interim Results

RNS Number : 1249L

Ultimate Sports Group PLC

28 September 2016

 

Ultimate Sports Group Plc ("USG" or the "Company")

Interim Results

Ultimate Sports Group Plc, the AIM listed investment vehicle, announces its results for the six months ended 30^th June 2016.

Chairman's Statement and Chief Executive's Review

For the six months ended 30^th June 2016 we are reporting a pre-tax loss of £199,253 (2015: loss £69,062).

Westside's net cash balances as at 30^th June 2016 were £461,814 (2015: £449,996).  The Directors are not recommending the payment of a dividend.

We are continuing our programme to develop the UltimatePlayer.me brand and we expect to secure definitive progress in 2016.

UltimatePlayer.me

As shareholders are aware, we have been developing an innovative online platform for children.  This is a "free to view" method of measuring, motivating and incentivising young children to enhance their own personal sporting performance.  Ultimate Player now covers 13 different sports.

We are pleased to report that the programme became fully operational in 2016 and is now being put through its paces with a core group of coaches, children and parents.

We are enthusiastic about the future of the Ultimate Player brand as we launch UltimatePlayer.me and tap into our ESS platform which as outlined below is already established and continues to grow.

We have invested considerable time and money in the development of the UltimatePlayer.me programme and the second stage is expected to make definitive progress in the last quarter of 2016.

Pantheon Leisure Plc ("Pantheon")

Westside holds 85.87% of the issued share capital of Pantheon, which in turn owns 100% of the operating business of Pantheon's sport and leisure division.

Pantheon's sports and leisure division comprises two trading companies, Sport in Schools Limited ('ESS'), also known as The Elms Sport in Schools, and Football Partners Limited ('FPL') - also known as The Elms Small Sided Football.

Pantheon as a group made a profit of £36,259 for the 6 months ended 30^th June 2016 (2015: loss £24,942).

Sport in Schools Limited ('ESS' - Elms Sport in Schools)

On a turnover of £664,087 (2015: loss £670,681), ESS has contributed a divisional profit of £117,404 as compared with £101,359 to 30^th June 2015.

ESS specialises in the delivery of primary school sport - covering the National Curriculum during the day and The Extended Day before and after school hours (breakfast, lunchtime and after-school clubs).

The majority of the breakfast and lunchtime clubs are provided and paid for by the school, whilst the majority of after-school clubs are paid for by parents.

Holiday camps are a successful area for ESS where it provides sports tuition during the school holidays.  The majority of the camps are paid for by parents, whilst a few are paid for by the school.

The ESS directors have developed bespoke skill sets which have been adopted with great enthusiasm by its full time staff and part time coaches.  On average, 21,000 children are coached between 12 to 25 hours a week.  All its coaches are highly qualified (minimum level 2), DBS checked, child protection vetted and rigorously trained by ESS in all the main disciplines required by the National Curriculum.  The management of ESS constantly monitors and assesses the level of performance of its coaches throughout the school year.

Football Partners Limited ('FPL')

The 5-a-side football operation enjoys full FA accreditation and its activities (conducted through FPL) continue to be influenced by a difficult market.  Turnover (net of corporate fees) decreased by 1.7% to £216,536 which resulted in an operating loss of £38,805 (2015: Loss £33,886).

Outlook

The continuing success of the sports tuition activities of ESS is encouraging and the directors consider that together with the ongoing development of the Ultimate Player.me website there is potential for significant growth.

We look forward to updating shareholders on progress.

R.L Owen

G.M. Simmonds

28 September 2016

* * ENDS * *

For further information, please visit www.ultimatesportsgroup.me or contact:

Ultimate Sports Group PLC Geoffrey Simmonds, Executive Chairman	[phone]
St Brides Partners Ltd (Financial PR) Elisabeth Cowell and Charlotte Page	[phone]
Cantor Fitzgerald Europe (Nomad and Joint Broker) Marc Milmo / Catherine Leftley	[phone]
Northland Capital Partners Limited (Joint Broker) Matthew Johnson / Stuart Miller  John Howes / Rob Rees	[phone]
Dowgate Capital Stockbrokers Limited (Joint Broker) Neil Badger / Jason Robertson	[phone]

Consolidated statement of comprehensive income for the six months ended 30 June 2016

		Unaudited  6 months ended 30 June 2016		Unaudited  6 months ended 30 June 2015		Audited Year ended 31 December 2015
		£		£		£
Revenues		881,864		891,009		1,674,521
Cost of sales		(456,454)		(490,980)		(976,037)
Gross profit		425,410		400,029		698,484
Administrative expenses		(559,382)		(533,560)		(1,035,747)
Website costs written off		(64,297)		(17,651)		(62,510)
Provision for impairment in value of  investments				-		(9,306)
		(623,679)		(551,211)		(1,107,563)
Operating loss		(198,269)		(151,182)		(409,079)
Finance income		1,002		123		1,150
Finance costs		(1,986)		(1,986)		(3,972)
Other gains and losses		-		83,983		55,480
		(984)		82,120		52,658
(Loss) before taxation		(199,253)		(69,062)		(356,421)
Taxation		15		(17,376)		(23,334)
Profit/(loss) after taxation		(199,238)		(86,438)		(379,755)
Attributable to:
Owners of the company		(202,946)		(89,989)		(377,424)
Non- controlling interests		3,708		3,551		(2,331)
		(199,238)		(86,438)		(379,755)
Other comprehensive (loss)/income
Net gain/ (loss) arising on revaluation of available-for-sale investments		75		(84,660)		(14,553)
Tax relating to components of other comprehensive income		(15)		17,376		23,334
		60		(67,284)		8,781
Total comprehensive loss
Owners of the company		(202,886)		(157,273)		(368,643)
Non- controlling interests		3,708		3,551		(2,331)
		(199,178)		(153,722)		(370,974)
Loss per share (basic)
Loss per share		(0.0133)p		(0.0063)p		(0.0265)p
Total comprehensive loss		(0.0133)p		(0.011)p		(0.0261)p
Loss per share (diluted)
Loss per share		(0.0133)p		(0.0063)p		(0.0265)p
Total comprehensive loss		(0.0133)p		(0.0011)p		(0.0261)p

Statement of financial position as at 30 June 2016

	Unaudited as at 30 June	Unaudited as at 30 June	Audited As at 31 December
	2016	2015	2015
	£	£	£
Non current assets
Goodwill and patents	60,054	60,054	60,054
Plant and equipment	61,985	107,994	80,975
Social media website development costs	457,725	295,879	426,967
Total non-current assets	579,764	463,927	567,996
Current assets
Available-for-sale investments	29,348	38,967	29,273
Trade and other receivables	290,409	325,236	182,254
Cash and cash equivalents	461,814	449,996	357,915
Total current assets	781,571	814,199	569,442
Total assets	1,361,335	1,278,126	1,137,438
Current liabilities
Trade and other payables	377,044	450,787	385,114
Borrowings	16,377	16,377	18,877
Total current liabilities	393,421	467,164	403,991
Non current liabilities
Borrowings	41,000	59,877	47,939
Total non-current liabilities	41,000	59,877	47,939
Total liabilities	434,421	527,041	451,930
Net assets	926,914	751,085	685,508
Equity
Share capital	2,026,164	1,426,164	1,526,164
Share premium	381,954	304,289	401,039
Merger reserve	325,584	325,584	325,584
Fair value reserve	1,210	8,904	1,150
Retained earnings	(1,766,099)	(1,320,689)	(1,569,380)
Equity attributable to owners of the company	968,813	744,252	684,557
Non-controlling interest	(41,899)	6,833	951
Total Equity	926,914	751,085	685,508

Consolidated statement of changes in equity

			Six months ended 30 June 2016		Six months ended 30 June 2015		Year ended 31 December 2015
			£		£		£
Total equity at the beginning of period/year			685,508		898,583		947,183
Issue of shares			480,915		-		196,750
Revaluation gains/(losses) on available-for sale investments			75		-		(14,552)
Release on disposal of available -for-sale investment			-		(84,660)		(99,900)
Taxation on items taken directly to equity			(15)		17,376		23,334
Share based payments			6,224		6,224		12,448
Loss for the period/year			(199,238)		(86,438)		(379,755)
Acquisition of non- controlling interest			(46,555)		-		-
At end of period/year			926,914		751,085		685,508

Consolidated statement of cash flows for the six months ended 30 June 2016

	Six months ended 30 June 2016	Six months ended 30 June 2015	Year ended 31 December 2015
	£	£	£
Cash flow from operating activities
(Loss)/profit before taxation	(199,253)	(69,062)	(356,421)
Adjustments for:
Other gains and losses	-	(83,983)	(55,480)
Depreciation and amortisation	46,272	23,012	55,487
Finance income	(1,002)	(123)	(1,150)
Finance costs	1,986	1,986	3,972
Share based payments	6,224	6,224	12,448
Operating cash flow before working capital movements	(145,773)	(121,946)	(341,144)
(Increase)/decrease in receivables	(108,155)	(183,056)	(40,074)
(Decrease)/Increase in payables	(8,070)	112,006	46,333
Net cash absorbed by operations	(261,998)	(192,996)	(334,885)
Investing activities
Finance income	1,002	123	1,150
Property, plant and equipment acquired	(3,228)	(14,412)	(10,563)
Social media website development	(54,812)	(129,856)	(270,250)
Proceeds on disposal of available-for-sale investments		89,230	89,230
Net cash (used)/from investing activities	(57,038)	(54,915)	(190,433)
Financing activities
Proceeds from share issues	480,915	-	196,750
Acquisition of non- controlling interest	(46,555)
Finance costs	(1,986)	(1,986)	(3,972)
Repayment of borrowings	(9,439)	(9,439)	(18,877)
Net cash from/(used) in financing activities	422,935	(11,425)	173,901
Net increase/(decrease) in cash and cash equivalents	103,899	(259,336)	(351,417)
Cash and cash equivalents and bank overdraft at the beginning of the period/year	357,915	709,332	709,332
Cash and cash equivalents at the end of the period/year	461,814	449,996	357,915

Notes to the financial statements for the six months ended 30 June 2016

1.            General information

Ultimate Sports Group plc (the "company") is a company domiciled in England and its registered office address is 130 City Road, London EC1Y 2AB.  The condensed consolidated interim financial statements of the company for the six months ended 30 June 2016 comprise the company and its subsidiaries (together referred to as "the group").

The condensed consolidated interim financial statements do not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.

The financial information for the year ended 31 December 2015 has been extracted from the statutory accounts. The auditors' report on those statutory accounts was unqualified and did not contain a statement under Section 434 of the Companies Act 2006.  A copy of those accounts has been filed with the Registrar of Companies.

The group has presented its results in accordance with the measurement principles set out in International Financial Reporting Standards as adopted by the EU using the same accounting policies and methods of computation as were used in the annual financial statements for the year ended 31 December 2015. As permitted, the interim report has been prepared in accordance with the AIM rules for companies and is not compliant in all respects with IAS34 'Interim Financial Statements'.

The condensed consolidated interim financial statements do not include all the information required for full annual financial statements and therefore cannot be construed to be in full compliance with IFRS.

The condensed consolidated interim financial statements were approved by the board and authorised for issue on 28 September 2016.

2.            Business segment analysis

Six months ended 30 June 2015
			Sports and leisure		Social media website		Consolidated
Results from operations			£		£		£
Revenue			880,623		1,241		881,864
Segment operating profit/(loss)			78,689		(64,778)		13,911
Group operating expenses							(212,180)
Operating loss							(198,269)
Finance costs net							(984)
Profit before taxation							(199,253)
Taxation							15
Loss after taxation from continuing activities							(199,238)

Six months ended 30 June 2015
			Sports and leisure		Social media website		Consolidated
Results from operations			£		£		£
Revenue			891,009		-		891,009
Segment operating profit			67,473		(17,651)		49,822
Group operating expenses							(201,004)
Operating loss							(151,182)
Other gains and losses							83,983
Finance income							(1,863)
Loss before taxation							(69,062)
Taxation							(17,376)
Loss after taxation from continuing activities							(86,438)

Year Ended 31 December 2015
			Sports and leisure		Social media website		Consolidated
Results from operations			£		£		£
Revenue			1,674,521		-		1,674,521
Segment operating (loss)/profit			67,241		(93,105)		(25,864)
Group operating expenses							(383,215)
Operating loss							(409,079)
Other gains and losses							55,480
Finance revenues less costs							(2,822)
Loss before taxation							(356,421)
Taxation							(23,334)
Profit after taxation from continuing activities							(379,755)

3.            Taxation

The tax charge in the accounts represents adjustments for deferred tax arising from origination and reversal of timing differences.

4.            Basic and diluted loss per share

The basic and diluted loss per ordinary share for the six month period ended on 30 June 2016 has been calculated on the group's loss attributable to owners of the company of £202,946 and on the weighted average number of shares in issue during the period of 15,261,268.

The basic and diluted loss per ordinary share for the six month period ended on 30 June 2015 has been calculated on the group's loss attributable to owners of the company of £89,989 and on the weighted average number of shares in issue during the period of 14,261,638 adjusted for a subsequent share consolidation in October 2015.

The basic and diluted loss per ordinary share for the year ended on 31 December 2015 has been calculated on the group's loss attributable to owners of the company of £377,424 and on the weighted average number of shares in issue during the year of 14,302,364.

Comprehensive loss per share for the six month period ended 30 June 2016 has been calculated on the comprehensive loss attributable to owners of the company of £202,886 and on the weighted average number of shares in issue during the period of 1,5261,268.

Comprehensive loss per share for the six month period ended 30 June 2015 has been calculated on the comprehensive loss attributable to owners of the company of £157,273 and on the weighted average number of shares in issue during the period of 14,261,638 adjusted for a subsequent share consolidation in October 2015.

Comprehensive loss per share for the year ended 31 December 2015 has been calculated on the comprehensive loss attributable to owners of the company of £368,643 and on the weighted average number of shares in issue during the year of 14,302,364

For the six month period ended 30 June 2016, six month period ended 30 June 2015 and for the year ended 31 December 2015, share options and warrants to subscribe for shares in the company are anti-dilutive and therefore diluted earnings per share information is the same as the basic loss per share.

 

END

 

 

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