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Brave Bison Grp PLC (BBSN)

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Tuesday 04 August, 2020

Brave Bison Grp PLC

Half-year Report

RNS Number : 9986U
Brave Bison Group PLC
04 August 2020
 

This announcement contains inside information as defined in EU Regulation No. 596/2014 and with the publication of this announcement via a regulatory information service this information is now considered to be in the public domain.

 

4 August 2020

 

Brave Bison Group plc

("Brave Bison", "the Group" or "the Company")

 

Interim results for the six months ended 30 June 2020

 

Brave Bison Group plc (AIM: BBSN), the social video group, today announces its unaudited interim results for the six months ended 30 June 2020. 

 

Highlights  

· Reduction in revenue to £5.5 million (H1 2019: £10.1 million) and loss before tax of £1.4 million (H1 2019: £1.2 million) as the Group contended with the challenges of the COVID-19 pandemic

· Appropriate action has been taken swiftly, with annualised cost savings of £1.1 million implemented to date. One off restructuring costs of £0.6 million (H1 2019: £0.4 million) have been incurred. 

· Adjusted EBITDA1 was a loss of £0.4 million (H1 2019: positive adjusted EBITDA of £0.2 million).  There is an improved outlook on the back of a better than anticipated recovery from June 2020, and given the cost savings the Group is now forecasting to be breakeven on an EBITDA basis in the second half of the year

· The Group is now led by a new management team and Board following the appointment of Oliver Green as Executive Chairman, Philippa Norridge as Chief Financial Officer and Matthew Law as Non-Executive Director

· Cash balance as at 30 June 2020 of £2.1 million (30 June 2019: £3.7 million) and no borrowings

· Acquisition and successful integration of certain assets of The Hook Group Limited ("The Hook"), one of the largest youth-focussed media groups with over 14 million followers across social media including almost 1 million followers on TikTok

· Significant client wins during the period, including Panasonic, World Dodgeball Federation, IMV Box, Media Star Maker and Viral Press.

· Successful revenue diversification across social platforms with content now distributed across Snapchat, TikTok, Facebook, Instagram and YouTube

 

Oliver Green, Executive Chairman, commented:

 

 

 

Brave Bison Group plc

Oliver Green, Executive Chairman

 

 

via Rebecca Abigail Ltd

Allenby Capital Limited - AIM Nominated Adviser and Broker

Jeremy Porter / Asha Chotai (Corporate Finance)

Amrit Nahal (Sales)

 

 

Tel: 020 3328 5656

Rebecca Abigail Ltd (PR)

Abigail Carrigan, Account Manager

Email: [email protected]

 

Tel: +44 (0)7757 042 837

 

 

 

 

This announcement is available on the Group's website,  www.bravebison.io .

 

About Brave Bison

 

Brave Bison is a social video group, specialising in cross-platform video content, connecting global audiences through social media. Its online communities reach over 135 million followers and the Brave Bison Studio provides expertise across strategy, research, data-driven insights, creative and production.

 

Brave Bison is one of the largest YouTube channel partners, with over 700 channels offering targeted inventory opportunities, alongside in-house specialists that deliver audience development and optimisation.

 

Its cultural connections and extensive networks have built the business long-standing client relationships with brands including P&G, Land Rover and Lego. With over 50 members of staff across London, Singapore, Japan and Korea, the 8-year-old business continues to stay at the forefront of this fast-moving digital age.

 

 

1 Adjusted EBITDA is a non-IFRS measure that the Company uses to measure its performance and is defined as earnings before interest, taxation, depreciation and amortisation and after add back of costs related to restructuring and share based payments.

 

 

 

 

Operating Review

 

 

Our advertising business faced challenges in the period. The two factors that drive revenue are the volume and the value of advertising. The volume is reflected in the number of views (or page sessions) that our media properties receive from users that come to watch our content. The value is the price paid by advertisers to reach these users during each session, measured in CPM, or cost per thousand views.

 

Firstly, we experienced significant reductions in CPMs, primarily in April and May, as advertisers reduced spend in response to the COVID-19 pandemic. Secondly, we experienced lower revenues from Facebook as a result of the de-monetisation of our pages last year; most of these pages have now been remonetised but we are experiencing lower revenues than previously.

 

The value of advertising has improved in June and July, ahead of our expectations, and we are now benefitting from increased watch time as viewers are spending more time at home. Furthermore, our diversification strategy has proven successful and Snapchat revenues performed particularly well during the crisis, boosting our operating margins. We have a strong relationship with the social platforms, and they have supported us well during the period by introducing a number of new revenue-generating advertising products to capitalise on increased engagement from audiences.

 

Our creative services business was adversely impacted by the pandemic and we saw a number of projects and campaigns paused in the APAC region from the start of the year. Marketing budgets were reduced and the lockdowns made it difficult to deliver projects already committed. We acted swiftly to trim our cost base although our core talent remains in place and primed for new business. We are expecting a number of delayed projects to kick off in the second half of the year, and foresee a recovery in the APAC region, particularly with the build-up to the Olympic Games next year.

 

We acquired The Hook, a leading youth entertainment brand, in April of this year, which has bolstered our presence on key social platforms including Instagram and TikTok. Advertisers have shown a strong appetite for Millennial and Gen Z audiences, and so this acquisition has enabled us to expand our relationships with brands and key media agencies. As part of the integration, we have restructured our content team and established a new development team to focus on social-first original series which we will distribute across all social platforms, as well as our own websites. We will monetise these series through brand sponsorships and programmatic advertising served via the social platforms.

 

We have refreshed our Board over the past six months, appointing a new Executive Chairman, Chief Financial Officer and Non-Executive Director, and streamlined the senior management team. 

 

Financial Review

 

Total revenue for the period was £5.5 million, a decrease of 45% compared to the equivalent period last year (H1 2019: £10.1 million). The majority of this decrease was due to the reduction in revenue from Facebook advertising to £1.7 million (H1 2019: £4.2 million) as a result of the change in their content policy and subsequent de-monetisation of our pages part way through 2019.

 

Revenues were also lower in our APAC-based creative services business, totalling £1.1m (H1 2019: £3.6m), as marketing budgets were reduced and the lockdowns made it difficult to deliver projects.

 

Conversely, Snapchat advertising revenues showed a strong increase, generating revenues of £0.5 million (H1 2019: £nil) from four commissioned shows.

 

Administrative expenses have reduced by 27% to £2.6 million (H1 2019: £3.6 million). A significant portion of this is due to a reduction in staff costs, and we have also negotiated favourable payment terms with a number of suppliers.

 

Headcount has decreased to 55 (30 June 2019: 70). Restructuring costs in H1 2020 of £0.6 million (H1 2019: £0.4 million) relate to changes made to the senior management, APAC and publishing teams.

 

The Group had £2.1 million of cash and cash equivalents at 30 June 2020 (30 June 2019: £3.7 million) and no overdraft or other borrowings. Cash outflows from operations increased to £2.2 million in the period (H1 2019: £1.5 million outflow).

 

Outlook

 

Streamlining our management team has allowed us to make substantial cost savings, which, when coupled with increased trading levels in June and July, has improved the outlook for the Group.

 

We remain acquisitive and are pursuing opportunities to expand the Group, with a number of early stage discussions ongoing. The pandemic has left many businesses exposed and we note that private market valuations have begun to come down. Our strategy of combining advertising and creative services means we have a particular interest in acquiring profitable digital and social marketing businesses, as well as high-growth media assets and social communities.

 

We continue to adapt to an exciting as well as challenging environment and look forward to the years ahead with confidence. I'd like to take this opportunity, on behalf of the Board, to thank all our staff for their contribution and dedication to the Group's continued progress.

 

 

On behalf of the Board

Oliver Green

Executive Chairman

04 August 2020

 

 

 

BRAVE BISON GROUP PLC

CONDENSED CONSOLIDATED INCOME STATEMENT AND CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 30 June 2020

 

 

(unaudited)

(unaudited)

(audited)

 

 

6 months to

6 months to

Year to 31

 

Note

30 June

 2020

30 June

 2019

December

 2019

 

 

£000's

£000's

£000's

 

 

 

 

 

Revenue

 

5,541

10,147

16,813

 

 

 

 

 

Cost of sales

 

(3,693)

(6,753)

(11,632)

Gross profit

 

1,848

3,394

5,181

 

 

 

 

 

Administration expenses

 

(2,600)

(3,582)

(6,565)

Restructuring costs

 

(616)

(407)

(649)

Impairment charge

6

-

(575)

(757)

Operating loss

 

(1,368)

(1,170)

(2,790)

 

 

 

 

 

Share of loss from equity accounted investment

 

-

(18)

(18)

Finance income

 

5

29

85

Finance costs

 

(36)

-

(22)

Loss before tax

 

(1,399)

(1,159)

(2,745)

 

 

 

 

 

Analysed as

 

 

 

 

EBITDA before restructuring costs

 

(368)

247

(410)

Restructuring costs

4

(616)

(407)

(649)

Equity settled share based payments

 

(9)

(91)

(165)

EBITDA

 

(993)

(251)

(1,224)

Finance income

 

5

29

85

Finance costs

 

(36)

-

(22)

Impairment charge

6

-

(575)

(757)

Depreciation

7

(261)

(38)

(178)

Amortisation

 

(114)

(324)

(649)

Loss before tax

 

(1,399)

(1,159)

(2,745)

 

 

 

 

 

Income tax (charge)/credit

 

(1)

19

35

 

 

 

 

 

Loss attributable to equity holders of the parent

 

(1,400)

(1,140)

(2,710)

 

Statement of Comprehensive Income

 

 

 

 

Loss for the period/year

 

(1,400)

(1,140)

(2,710)

Items that may be reclassified subsequently to profit or loss

 

 

 

 

Exchange gain/(loss) on translation of foreign subsidiaries

 

9

3

  (1)

Total comprehensive loss for the period/year attributable to owners of the parent

 

 

(1,391)

 

(1,137)

(2,711)

 

Loss per share (basic and diluted)

 

 

 

 

Basic and diluted loss per ordinary share (pence)

5

(0.23p)

(0.19p)

(0.45p)

 

 

 

BRAVE BISON GROUP PLC

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2020

 

 

(unaudited)

(unaudited)

(audited)

 

Note

At

30 June

2020

At

30 June

2019

At 31

December 2019

 

 

£000's

£000's

£000's

 

 

 

 

 

Non-current assets

 

 

 

 

Intangible assets

6

878

1,295

826

Property, plant and equipment

 

648

25

909

Investment in associates

 

-

38

-

 

 

1,526

1,358

1,735

 

 

 

 

 

Current assets

 

 

 

 

Trade and other receivables

 

2,207

5,622

2,611

Cash and cash equivalents

 

2,071

3,671

4,249

 

 

4,278

9,293

6,860

 

 

 

 

 

Current liabilities

 

 

 

 

Trade and other payables

 

(3,597)

(6,197)

(4,758)

Lease Liabilities

9

(520)

-

(497)

 

 

(4,117)

(6,197)

(5,255)

 

 

 

 

 

Non-current liabilities

 

 

 

 

Deferred tax

 

(136)

(162)

(142)

Lease Liabilities

9

(137)

-

(403)

 

 

(273)

(162)

(545)

 

 

 

 

 

Net assets

 

1,414

4,292

2,795

 

 

 

 

 

Equity

 

 

 

 

Share capital

8

613

609

612

Share premium

 

78,762

78,762

78,762

Capital redemption reserve

 

6,660

6,660

6,660

Merger reserve

 

(24,060)

(24,060)

(24,060)

Merger relief reserve

 

62,624

62,624

62,624

Retained deficit

 

(122,443)

(119,556)

(121,052)

Translation reserve

 

(742)

(747)

(751)

Total equity

 

1,414

4,292

2,795

 

 

 

 

 

 

 

 

BRAVE BISON GROUP PLC

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the six months ended 30 June 2020

 

(unaudited)

(unaudited)

(audited)

 

6 months to

6 months to

Year to 31

 

30 June  2020

30 June  2019

December  2019

 

£000's

£000's

£000's

Operating activities

 

 

 

Loss before tax

(1,399)

(1,159)

(2,745)

Adjustments:

 

 

 

Depreciation, amortisation and impairment

121

937

1,505

Finance income

(5)

(29)

(43)

Finance costs

-

-

-

Share based payment charges

9

91

165

Decrease/(increase) in trade and other receivables

404

144

3,155

(Decrease)/increase in trade and other payables

(1,115)

(1,469)

(2,924)

Tax paid

(6)

(2)

(7)

Cash outflow from operating activities

(1,991)

(1,487)

(894)

 

 

 

 

Investing activities

 

 

 

Purchase of property, plant and equipment

-

(2)

(9)

Purchase of intangible assets

(166)

(266)

(266)

Interest received

5

29

43

Cash outflow from investing activities

(161)

(239)

(232)

 

 

 

 

Cash flows from financing activities

 

 

 

Issue of share capital

1

33

36

Interest paid

(36)

-

(22)

Cash inflow from financing activities

(35)

33

14

 

 

 

 

Net change in cash and cash equivalents

(2,187)

(1,693)

(1,112)

 

 

 

 

Movement in net cash

 

 

 

Cash and cash equivalents, beginning of period

4,249

5,362

5,362

(Decrease)/increase in cash and cash equivalents

(2,187)

(1,693)

(1,112)

Movement in foreign exchange

9

3

(1)

Cash and cash equivalents, end of period

  2,071

3,672

4,249

 

BRAVE BISON GROUP PLC

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months ended 30 June 2019

 

 

Share

capital

Share

premium

Capital redemption

reserve

 

Merger reserve

 

Merger relief reserve

 

Translation

reserve

Retained

deficit

Total

equity

 

£000's

£000's

£000's

£000's

£000's

£000's

£000's

£000's

At 1 January 2019 (audited)

576

78,762

6,660

(24,060)

62,624

(750)

(118,507)

5,305

Shares issued during the period

33

-

-

-

-

-

-

33

Equity settled share based payments

-

-

-

-

-

-

91

91

Transactions with owners

33

-

-

-

-

-

91

124

 

 

 

 

 

 

 

 

 

Other Comprehensive Income

 

 

 

 

 

 

 

 

Loss and total comprehensive income for the period

-

-

-

-

-

3

(1,140)

(1,137)

At 30 June 2019 (unaudited)

609

78,762

6,660

(24,060)

62,624

(747)

(119,556)

4,292

At 1 January 2019 (audited)

576

78,762

6,660

(24,060)

62,624

(750)

(118,507)

5,305

Shares issued during the year

36

-

-

-

-

-

-

36

Equity settled share based payments

-

-

-

-

-

-

165

165

Transactions with owners

36

-

-

-

-

-

165

201

 

 

 

 

 

 

 

 

 

Other Comprehensive Income

 

 

 

 

 

 

 

 

Loss and total comprehensive income for the period

-

-

-

-

-

(1)

(2,710)

(2,711)

At 31 December 2019 (audited)

612

78,762

6,660

(24,060)

62,624

(751)

(121,052)

2,795

 

At 1 January 2020 (audited)

612

78,762

6,660

(24,060)

62,624

(751)

(121,052)

2,795

Shares issued during the year

1

-

-

-

-

-

-

1

Equity settled share based payments

-

-

-

-

-

-

9

9

Transactions with owners

1

-

-

-

-

-

9

10

 

 

 

 

 

 

 

 

 

Other Comprehensive Income

 

 

 

 

 

 

 

 

Loss and total comprehensive income for the period

-

-

-

-

-

9

(1,400)

(1,391)

At 30 June 2020 (unaudited)

613

78,762

6,660

(24,060)

62,624

(742)

(122,443)

1,414

 

BRAVE BISON GROUP PLC

NOTES TO THE UNAUDITED INTERIM FINANCIAL STATEMENTS

For the six months ended 30 June 2019

 

1  General information

 

The information for the year ended 31 December 2019 does not constitute statutory accounts as defined in section 435 of the Companies Act 2006.  A copy of the statutory accounts has been delivered to the Registrar of Companies.  The auditors reported on those accounts: their report was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.  The interim financial statements have not been audited or reviewed by the Group's auditor.

 

2  Accounting policies

 

Basis of preparation

The annual financial statements of Brave Bison Group plc are prepared in accordance with IFRS as adopted by the European Union.  The condensed set of financial statements included in this half yearly report has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting", as adopted by the European Union.

 

The interim statement has been prepared on a going concern basis, which assumes that the Group will be able to meet its liabilities for the foreseeable future. The Group is dependent for its working capital requirements on cash generated from operations, cash holdings and from equity markets. The cash holdings of the Group at 30 June 2020 were £2.1 million.

 

The Directors have prepared detailed cash flow projections ("the Projections") which are based on their current expectations of trading prospects. The board forecasts that the Group will achieve positive cash inflows in 2021 and has sufficient cash on hand to reach that goal. Accordingly, the Directors have concluded that it is appropriate to continue to adopt the going concern basis in preparing these financial statements.  The Directors are confident that the Group's forecasts are achievable, and are committed to taking any actions available to them to ensure that any shortfall in forecast revenues is mitigated by cost savings.

 

The Directors have looked at the potential impact of the COVID-19 pandemic, and have prepared scenario plans, including looking at recovery in Q4, and the impact of a potential second wave of the pandemic.  They remain confident that the Group has sufficient cash resources for a period of at least one year even in the downside scenario.  The Directors have already taken mitigating actions around reducing capital expenditure and negotiating with suppliers, and are confident that they have identified cost saving actions to mitigate any impact this may have in revenue. We also have business continuity plans in place around home working and content production.  Accordingly the going concern basis of accounting has been adopted in preparing these interim financial statements.

 

Significant accounting policies

The accounting policies applied by the Group in this condensed set of consolidated financial statements are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 31 December 2019 excepted as noted below.

 

Adoption of new and revised standards

The Group has adopted the new accounting pronouncements which have become effective this year, and are as follows:

 

Update to IFRS 16 "Leases" 

 

The changes in Covid-19-Related Rent Concessions (Amendment to IFRS 16) amend IFRS 16 to

 

· provide lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification; 

· require lessees that apply the exemption to account for COVID-19-related rent concessions as if they were not lease modifications; 

· require lessees that apply the exemption to disclose that fact; and 

· require lessees to apply the exemption retrospectively in accordance with IAS 8, but not require them to restate prior period figures.

 

Other pronouncements

 

Other accounting pronouncements which have become effective from 1 January 2020 and therefore have been adopted do not have a significant impact on the Group's financial results or position.

 

3  Segment reporting

 

Management identify only one operating segment in the business, being monetising online video content. This single operating segment is monitored and strategic decisions are made on the basis of this segment alone.

 

As a result, only the geographic reporting of revenue analysis has been included in this note.

 

Geographic reporting

The information is presented based on the customers' location.

 

 

 

 

(audited)

 

 

(unaudited)

(unaudited)

12 months

 

 

6 months ended

June 2020

6 months ended

June 2019

 ended 31

December

 2019

 

 

£000's

£000's

£000's

 

 

 

 

 

United Kingdom & Europe

 

4,061

6,698

12,135

Asia Pacific

 

696

3,108

3,835

Rest of the World

 

784

341

843

Revenue

 

5,541

10,147

16,813

 

 

 

 

 

 

The group identifies two revenue streams, Advertising and Fee based services. The analysis of revenue and gross profit by each stream is detailed below.

 

 

 

 

(audited)

 

 

(unaudited)

(unaudited)

12 months

 

 

6 months ended

June 2020

6 months ended

June 2019

 ended 31

December

 2019

Revenue

 

£000's

£000's

£000's

 

 

 

 

 

Advertising

 

4,565

6,550

12.396

Fee based services

 

976

3,597

4,417

Total revenue

 

  5,541

10,147

16,813

 

 

 

 

 

3  Segment reporting - continued

 

 

 

 

 

(audited)

 

 

(unaudited)

(unaudited)

12 months

 

 

6 months ended

June 2020

6 months ended

June 2019

 ended 31

December

 2019

Gross profit

 

£000's

£000's

£000's

 

 

 

 

 

Advertising

 

1,160

1,656

2,831

Fee based services

 

688

1,738

2,350

Total gross profit

 

  1,848

3,394

5,181

 

Timing of revenue recognition

The following table includes revenue from contracts disaggregated by the timing of recognition.

 

 

 

 

 

(audited)

 

 

(unaudited)

(unaudited)

12 months

 

 

6 months ended

June 2020

6 months ended

June 2019

 ended 31

December

 2019

 

 

£000's

£000's

£000's

 

 

 

 

 

Products and services transferred at a point in time

 

5,439

9,901

16,079

Products and services transferred over time

 

102

246

734

Total revenue

 

5,541

10,147

16,813

 

4  Restructuring

 

The £0.6 million restructuring costs in the period (H1 2019: £0.4 million) relates to changes made to the senior management team and the APAC and publishing teams, and includes salary in lieu of notice and termination payments.

 

5  Loss per share

 

Both the basic and diluted loss per share have been calculated using the loss after tax attributable to shareholders of Brave Bison Group plc as the numerator, i.e. no adjustments to losses were necessary in 2020 or 2019.  The calculation of the basic loss per share is based on the loss attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period. 

 

 

 

 

(audited)

 

(unaudited)

(unaudited)

12 months

 

6 months ended

June 2020

6 months ended

June 2019

 ended 31

December

 2019

 

£000's

£000's

£000's

Loss for the year attributable to ordinary shareholders

(1,400)

(1,140)

(2,710)

 

 

 

 

Equity settled share based payments

9

91

165

Amortisation, depreciation and impairment

375

937

1,584

 

 

 

 

Adjusted (loss)/profit for the period attributable to the equity shareholders

(1,016)

(112)

961

 

 

 

 

Brave Bison Group plc

Weighted average number of ordinary shares

612,511,149

599,645,422

605,510,566

Dilution due to share options

46,267,556

44,130,436

41,488,760

Total weighted average number of ordinary shares

658,778,705

643,775,858

646,999,326

 

 

 

 

Basic and diluted loss per ordinary share (pence)

(0.23p)

(0.19p)

(0.45p)

Adjusted basic (loss)/profit per ordinary share (pence)

(0.17p)

(0.02p)

(0.16p)

Adjusted diluted (loss)/profit per ordinary share (pence)

(0.15p)

(0.02p)

(0.15p)

 

 

6  Intangible Assets

 

 

Goodwill

Online Channel Content

Technology

 

 

Brands

Customer Relation-ships

Total

 

 

£000's

£000's

£000's

£000's

£000's

£000's

Cost

 

 

 

 

 

 

 

At 30 June 2019

 

35,075

1,868

5,213

273

19,332

61,761

Additions

 

 

-

-

-

-

-

-

At 31 December 2019

 

35,075

1,868

5,213

273

19,332

61,761

 

 

 

 

 

 

 

 

Additions

 

-

166

-

-

-

166

At 30 June 2020

 

35,075

2,034

5,213

273

19,498

61,927

 

 

 

 

 

 

 

 

Amortisation and impairment

 

 

 

 

 

At 30 June 2019

 

35,075

1,508

5,213

273

18,397

60,466

Charge for the period

 

-

216

-

-

109

325

Impairment charge

 

-

144

-

-

-

144

 

 

 

 

 

 

 

 

At 31 December 2019

 

35,075

1,868

5,213

273

18,506

60,935

 

 

 

 

 

 

 

 

Charge for the period

 

-

5

-

-

109

114

Impairment charge

 

-

-

-

-

-

-

At 30 June 2020

 

35,075

1,873

5,213

273

18,615

61,049

 

 

 

 

 

 

 

 

Net Book Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 30 June 2019

 

-

360

-

-

935

1,295

 

 

 

 

 

 

 

 

At 31 December 2019

 

-

-

-

-

826

826

 

 

 

 

 

 

 

 

At 30 June 2020

 

-

161

-

-

717

878

 

 

 

 

 

 

 

 

                 

 

During the period Brave Bison capitalised the purchase of certain assets of The Hook Group Limited, consisting of certain intellectual property rights, social media accounts, and the video content library.  The cash consideration for this was £0.2 million.  This has been treated as a purchase of assets and accounted for in accordance with IAS 38.  The assets are being amortised over five years.

7  Property, plant and equipment

 

 

Right of Use asset

Computer Equipment

Fixtures &

 Fittings

Total

 

£000's

£000's

£000's

£000's

Cost

 

 

 

 

At 30 June 2019

-

902

213

1,115

Additions

1,018

-

7

1,025

At 31 December 2019

1,018

902

220

2,140

 

 

 

 

 

Additions

-

-

-

-

At 30 June 2020

1,018

902

220

2,140

 

 

 

 

 

Depreciation and impairment

 

 

 

 

At 30 June 2019

-

888

203

1,091

Charge for the period

127

8

5

140

At 31 December 2019

127

896

208

1,231

 

 

 

 

 

Charge for the period

254

2

5

261

At 30 June 2020

381

898

213

1,492

 

 

 

 

 

Net Book Value

 

 

 

 

At 30 June 2019

-

14

10

24

 

 

 

 

 

At 31 December 2019

891

6

12

909

 

 

 

 

 

At 30 June 2020

637

4

7

648

 

Included in the net carrying amount of property, plant and equipment are right-of-use assets as follows:

 

 

 

(audited)

 

(unaudited)

(unaudited)

12 months

 

6 months ended

June 2020

6 months ended

June 2019

 ended 31

December

 2019

 

£000's

£000's

£000's

 

 

 

 

Right-of-use-asset

637

-

891

Total right-of-use asset

637

-

891

 

8  Share capital

 

       

          Ordinary share capital

 

At 30 June 2020

 

 

Number

£000's

 

 

 

 

Ordinary shares of £0.001

612,821,228

613

 

 

 

Total ordinary share capital of the Company

 

613

 

 

 

 

Rights attributable to ordinary shares

The holders of ordinary shares are entitled to receive notice of and attend and vote at any general meeting of the Company.

 

9  Leases

 

Lease liabilities are presented in the statement of financial position as follows:

 

 

(unaudited)

(unaudited)

(audited)

 

 

At

30 June

2020

At

30 June

2019

At 31

December 2019

 

 

£000's

£000's

£000's

 

 

 

 

 

Current

 

520

-

497

Non-current

 

137

-

403

 

 

657

-

900

 

The group entered into a two year lease for an office on 1 October 2019. With the exception of short-term leases and leases of low-value underlying assets, each lease is reflected on the balance sheet as a right-of-use asset and a lease liability.

 

The table below describes the nature of the Group's leasing activities by type of right-of-use asset recognised on the statement of financial position:

 

 

No. of right-of-use assets leased

Range of remaining term

Average remaining lease term

No. of leases with extension options

No. of leases with termination options

Office building

1

1.5 years

1.5 years

-

-

 

The lease liabilities are secured by the related underlying assets. Future minimum lease payments at 30 June 2020 were as follows:

 

 

 

Within one year

One to two years

Total

 

 

£000's

£000's

£000's

Lease payments

 

558

139

697

Finance charges

 

(38)

(2)

(40)

Net present values

 

520

137

657

 

 

 

9  Leases - continued

 

The group has elected not to recognise a lease liability for short terms leases (leases with an expected term of 12 months or less). Payments made under such leases are expensed on a straight-line basis.

 

The expense relating to payments not included in the measurement of the lease liability is as follows:

 

 

 

 

(audited)

 

(unaudited)

(unaudited)

12 months

 

6 months ended

June 2020

6 months ended

June 2019

 ended 31

December

 2019

 

£000's

£000's

£000's

 

 

 

 

Short-term leases

27

-

55

 

 

 

 

 

The Group received a Covid-19 related rent concession during the period of £69,750.  It has applied the exemption granted by the Covid-19-Related Rent Concessions (Amendment to IFRS 16) and has therefore not assessed this as a lease modification but has included it within administration expenses.

 

At 30 June 2020 the Group had not committed to any leases which had not yet commenced excluding those recognised as a lease liability.

 

10  Financial Instruments

 

 

 

(unaudited)

(unaudited)

(audited)

Categories of financial instruments

 

 As at 30

June

 2020

 As at 30

June

 2019

As at 31

 December

2019

 

 

£000's

£000's

£000's

Financial assets

 

 

 

 

Loans and other receivables

 

  2,207

5,622

2,611

Cash and bank balances

 

2,071

3,671

4,249

 

 

4,278

9,293

6,860

 

 

 

 

 

Financial liabilities

 

 

 

 

Trade and other payables at amortised cost

 

(3,597)

(6,197)

(4,758)

Lease liabilities

 

(520)

-

(497)

 

 

(4,117)

(6,197)

(5,255)

 

 

Brave Bison categorises all financial assets and liabilities as level 1 for fair value purposes which means they are valued using quoted prices (unadjusted) in active markets for identical assets or liabilities.

 

 

11  Contingent liabilities

 

There were no contingent liabilities at 30 June 2020 (30 June 2019 and 31 December 2019: None).

 

 

12  Transactions with Directors and other related parties

 

Transactions with associates during the year were:

 

 

 

 

(audited)

 

 

(unaudited)

(unaudited)

12 months

 

 

6 months ended

June 2020

6 months ended

June 2019

 ended 31

December

 2019

 

 

£000's

£000's

£000's

 

 

 

 

 

Associates revenue share

 

-

134

134

Salary recharge*

 

41

-

-

 

 

41

134

-

 

 

(unaudited)

(unaudited)

(audited)

 

 

6 months to

6 months to

Year to 31

 

 

30 June  2020

30 June  2019

December  2019

 

 

£000's

£000's

£000's

 

 

 

 

 

Amounts owed to associates

 

-

-

-

 

 

-

-

-

 

 

 

*The salary recharge relates to an amount paid to Tangent Marketing Services during the period for the services of Philippa Norridge as Interim CFO.


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