29/05/09
HYPER ENTERTAINMENT PLC
("Hyper" or "the Company")
AUDITED FINANCIAL RESULTS FOR THE FINANCIAL YEAR TO 31 DECEMBER 2008
DIRECTORS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2008
The directors present their report and financial statements for the year ended
31 December 2008.
Following the dissolution of Hyper Entertainment Inc, a wholly owned subsidiary
of the Company on 31 December 2007, the Company no longer has any subsidiaries
and consequently had no requirements to prepare consolidated financial
statements for the year ended 31 December 2008.
The consolidated net assets at 31 December 2007 are reconciled to the Company
net assets at 31 December 2007 as follows:
£
As reported (27,667)
Hyper Entertainment Inc retained post acquisition lost 100,421
Currency translation reserve (3,792)
Prior year adjustment (67,000)
--------
As per restated comparative 1,962
--------
The prior year adjustment is in respect of income accrued at 31 December 2006
that was invoiced in the year ended 31 December 2007 but the balance had been
included in trade debtors at 31 December 2007.
Principal activities and review of the business
The principal activity of the company continued to be that of delivering
entertaining and viable solutions to its clients within the entertainment,
retail and real-estate sectors.
During the year under review the Company's turnover increased by 108% and there
was an increase in gross profit. The overall profit before tax is £19,905. The
year was very busy with Hyper securing its largest number of contracts in any
one year period.
Hyper worked with a variety of clients and provided services in the visitor
experience, leisure development and sponsorship areas. Hyper showed strong
growth in the Middle East region by securing an additional three clients above
the contract with ALDAR. Hyper's growth enabled it to move its offices and to
hire a Manager of Strategic Services. Hyper is now located in Soho Square
surrounded by many of the types of clients with whom Hyper works.
Further, Hyper has utilized its sales and marketing resources which were mostly
applied to sponsorship implementation in other areas not traditional to its
business. This has allowed for Hyper to combat the overall economic downturn by
repurposing its assets.
Principal risks and uncertainties
The key risk is the worldwide economic downturn which has affected some of the
industries to which Hyper markets its services. In order to combat this, Hyper
has continued it business development in regions that have not been as hard hit,
and has successfully begun to really penetrate those markets as evidenced by the
numerous contracts in the Middle East. It is also continues to expand its range
of services in order to broaden its potential client base.
Additional, members of the Hyper team are positioning themselves as relevant
members of boards and committees in their client's industries. This enables for
strong networking and business development opportunities on which the company
has always generated its sales leads.
The sales cycle entailed in obtaining the larger, usually more profitable,
consulting engagements continues to be the key risk to the business. On larger
contracts the sales cycle can last up to 12-18 months which can result in
periods with little or no revenue generated. The Company tries to mitigate
against this uneven income stream by controlling overhead costs and seeking
smaller contracts which have a shorter sales cycle to smooth income generation.
Key performance indicators
Maintaining flexibility in staffing through the use of sub-contractors and
maintaining a tight control of administrative fees is critical for improving
cashflow and profitability.
Future developments
The Company continues its business development activities and is currently
participating in several tenders for potential clients in the United Kingdom,
the Middle East and Europe. The Company will continue with its efforts to
increase the number of contracts and expand its range of services.
As ever, in closing we would like to thank our staff, advisors, friends and
shareholders for their continued support.
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2008
2008 2007
as
restated
£ £
Turnover 544,992 262,536
Cost of sales (290,678) (126,201)
------- -------
Gross profit 254,314 136,335
Administrative expenses (235,209) (156,335)
------- --------
Operating profit/(loss) 19,105 (20,000)
Other interest receivable 800 959
and similar income
Amounts written off investments - (3,950)
------- --------
Profit/(loss) on ordinary 19,905 (22,991)
activities before taxation
Tax on profit/(loss) on - -
ordinary activities
------- -------
Profit/(loss) for the year 19,905 (22,991)
------- -------
Earnings/(loss) per share 0.30p (0.35)p
------- -------
The profit and loss account has been prepared on the basis that
all operations are continuing operations.
BALANCE SHEET AS AT 31 DECEMBER 2008
2008 2007
as restated
£ £ £ £
Fixed assets
Tangible assets 789 986
Current assets
Debtors 137,021 54,481
Cash at bank and in hand 1,211 62,919
------- -------
138,232 117,400
Creditors: amounts
falling due within one year (117,154) (116,424)
------- -------
Net current assets 21,078 976
------- -------
Total assets less current liabilities 21,867 1,962
======= =======
Capital and reserves
Called up share capital 66,568 66,568
Share premium account 205,541 205,541
Profit and loss account (250,242) (270,147)
------- --------
Shareholders' funds 21,867 1,962
======= ========
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
FOR THE YEAR ENDED 31 DECEMBER 2008
2008 2007
as
restated
£ £
Profit/(loss) for the 19,905 (22,991)
financial year
Prior year adjustment (67,000) -
------- -------
Total gains and losses recognised
since last financial statements (47,095) (22,991)
------- -------
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2008
1. The financial information set out in this announcement does not constitute
statutory accounts. This financial information has been extracted from the
audited full accounts of the Company for the year ended 31 December 2008.
2. The financial statements are prepared in accordance with applicable United
Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting
Practice), which have been applied consistently (except as otherwise stated).
3. The directors do not recommend the payment of a dividend.
The Directors of the issuer accept responsibility for this announcement.
--ENDS--
Enquiries:
Hyper Entertainment plc Tel: 020 7025 8077
Wendy Rosenthal
www.hyperentertainment.com
Rivington Street Capital Finance Tel: 020 7562 3389
Monisha Varadan Eran Zucker
[email protected] [email protected]