TIDMBOTB
RNS Number : 8221C
Best of the Best PLC
20 June 2019
BEST OF THE BEST PLC
Preliminary Results
For the year ended 30 April 2019
KEY HIGHLIGHTS:
-- Revenue increased by 14.4% to GBP14.81 million (2018: GBP12.95 million)
-- Online sales during the period accounted for GBP14.3 million
of revenue or circa 97% of the total
-- Operating profit before exceptional items increased by 31.9%
to GBP2.11 million (2018: GBP1.60 million)
-- Net assets of GBP1.28 million, underpinned by cash balances of GBP2.54 million
-- Proposed 2.0p ordinary dividend to be paid on 27 September 2019
-- Tender offer completed in February 2019 returned GBP3.5m to
qualifying shareholders following successful conclusion of a VAT
claim
-- Adjusted earnings per share increased by 32.3% to 17.62p (2018: 13.32p)
-- Continued success with marketing initiatives, resulting in an
encouraging increase in online sales
-- Revenues now almost exclusively online, with just one airport location remaining
-- Competitions, pricing and strategy now designed for our
growing online customer base, enabling increased marketing
investment in player acquisition and retention
William Hindmarch, Chief Executive, said:
"I am pleased to report continued solid progress with an
encouraging set of final results showing both increased revenues
and profits before tax, both of which are slightly ahead of
management's expectations. The transformation to become a pure
online business is largely complete and has been a success, giving
us more flexibility and focus, as well as efficiency and cost
savings.
We continue to increase our marketing investment across all
acquisition and retention channels and look forward to updating
shareholders with further progress in due course."
Enquiries:
Best of the Best plc William Hindmarch, Chief T: 020 7371
Executive 8866
Rupert Garton, Commercial
Director
KTZ Communications Katie Tzouliadis T: 020 3178
6378
finnCap Corporate Finance T: 020 7220
(Nominated Adviser and Carl Holmes 0500
Broker) Anthony Adams
ECM
Alice Lane
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation 596/2014.
Please visit www.botb.com for further information
CHIEF EXECUTIVE'S STATEMENT
During the year we have almost completed our move away from
physical retail locations (principally airports) to become, in due
course, an entirely online focused operation. With the exception of
one remaining site at Birmingham Airport, all customer acquisition
activity is focused on driving traffic and registrations to our
website botb.com.
The transformation to become a pure online business has been a
proven success, giving us more flexibility and focus, as well as
material efficiency and cost savings. Our investment in marketing
continues to increase and has been returning encouraging results.
As a result, our competitions, pricing and product strategy are now
tailored exclusively for our growing and increasingly diversified
online customer base.
Preliminary Results
Revenue for the year ended 30 April 2019 increased by 14.4% to
GBP14.81 million (2018: GBP12.95 million) and operating profit
before exceptional items rose by 31.9% to GBP2.11 million (2018:
GBP1.60 million). Adjusted earnings per share (excluding
exceptional items and associated tax) increased by 32.3% to 17.62p
(2018: 13.32p).
GBP4.5 million of exceptional income was also recognised as a
result of the Company's successful claim for overpaid VAT in prior
years, offset by GBP2.0 million of exceptional expenses related to
retrospective taxation and professional fees. This finally
concludes the already well documented VAT claim which has been
ongoing since 2013 and the Directors are pleased this has come to a
conclusion. Profit before tax including exceptional items was
GBP4.70 million with fully diluted earnings per share (including
exceptional items) from continuing operations at 38.52p. Following
the conclusion of the VAT claim a tender offer was completed in
February 2019 to return GBP3.5m to qualifying shareholders.
A total of GBP4.24 million of cash flow was generated from
operations during the period (2018: GBP1.81 million). Net assets at
30 April 2019 stood at GBP1.28 million (2018: GBP1.55 million),
underpinned by cash balances of GBP2.54 million (2018: GBP2.32
million) and our 967-year leasehold office properties valued at
GBP0.95 million. Current cash balances stand in excess of GBP3.0
million.
The Company is now deriving almost all of its income from our
higher margin online operations. During the year we exited our two
Gatwick Airport sites as well as our sites at both Edinburgh and
Manchester airports. Our only remaining physical site is at
Birmingham airport. Although these closures (we previously occupied
up to 12 airport sites and several shopping centre sites) have held
back the top line revenue growth in the last few years, the
business is now much better placed to grow profitably and
efficiently. Online sales grew strongly during the period,
accounting for GBP14.3 million of revenue or circa 97% of the
total.
Dividends
The Board is recommending a final dividend of 2.0p per share
(2018: 1.5p) for the full year ending 30 April 2019 subject to
shareholder approval at the Annual General Meeting on 11 September
2019. The final dividend will be paid on 27 September 2019 to
shareholders on the register on 13 September 2019. A Special
Dividend of 4.5p per ordinary share was also paid to shareholders
on 20 July 2018.
Strategy, competitions and pricing
Since inception in 2000, BOTB leased physical sites in locations
such as airports and shopping centres to acquire new players,
service existing players and encourage customers to play online.
However, our costs and in particular rent and staff expenditure in
these retail locations continued to increase significantly
year-on-year, resulting in reduced efficiency when compared to
other available channels.
Through continued trials in previous years, the Company proved
it could execute its marketing strategy more effectively using
predominantly digital media complemented by traditional advertising
channels. The physically serviced airport and retail customers were
also disproportionately affecting our pricing strategy and our
ability to innovate online. A further positive consequence of the
move to becoming a purely online operator has therefore been our
ability to design our competitions, pricing and innovations
exclusively for the online player.
BOTB's principal competition is the Weekly Dream Car, which
continues to perform well and benefit from improvements to the
online user experience, pricing and the choice of cars. Together,
these incremental changes have had a positive effect on revenues.
Our online content and weekly "In the Headlights" edit section
provides an incentive for people to keep returning to the site and
maintains engagement.
The Lifestyle Competition which features luxury watches,
motorbikes, holidays and other gadgets/technology as well as cash
prizes also continues to perform encouragingly. There is a
substantial overlap with players of our Dream Car competitions, but
the range of prizes in the Lifestyle Competition has significantly
broadened our addressable market for this affordable offering.
Continued investment in IT development
With the focus now exclusively online, our ability to acquire
players and encourage their loyalty - whether playing for the car
they have always dreamt about or for the lifestyle prize they
really want but cannot justify buying - relies heavily on providing
the best possible user experience and seamless checkout on whatever
screen or device a customer is viewing.
Over half our revenues and circa 80% of our visits are now on
mobile (and tablet) devices. Whilst a new platform and responsive
website was deployed in early 2017, we believe there are
significant further opportunities to enhance the mobile experience
for our customers and to improve conversion rates for both new and
existing players.
Our two-weekly development and release cycle is continually
refining our technology and introducing new functionality to make
using botb.com simpler, easier and more accessible for everyone.
Improvements to server responsiveness, reporting, device UX
analysis specifically for mobile, purchase path streamlining and
improved payment integration are planned for the current year. We
will also be re-introducing android and iOS apps, to complement an
improved mobile website experience.
New player acquisition and CRM
We have continued to invest strongly to attract new customers
and during the year BOTB's marketing strategy has delivered
encouraging online revenue growth. An enlarged, predominantly
in-house marketing team has invested in a multitude of channels
across the spectrum, including Social Media, TV, Radio, PR and
YouTube Influencers to acquire new players. These players replace
those once acquired through our many physical face-to-face channels
and, because they were acquired online, respond well to our
content, marketing initiatives and to the wider BOTB community.
Social media continues to be a core marketing channel, driving
both customer acquisition and brand awareness. Our Facebook page
now attracts over 249,000 followers with BOTB's YouTube channel at
over 31,000 subscribers, whilst Instagram followers exceed
80,000.
This activity is complemented by campaigns executed on
traditional media channels to ensure the Company is promoted to a
wide range of ages and demographics. New updated TV creative was
run throughout the period and performed at its most efficient level
since we first utilised TV advertising in 2015. Investment in print
and public relations has secured frequent coverage of weekly
winners and is working well to positively support and promote our
brand.
Our key business metric is the cost per acquisition of new
customers, versus their lifetime value. This metric, which is
tracked and analysed in considerable detail across the channels, is
the primary driver in dictating where and how we continue to grow
our online marketing investment in the year ahead, to acquire new
BOTB customers and advocates.
A further focus in this financial year will be on maximising
customer retention and engagement and hence lifetime values. A new
hire has been made specifically to assist with this project,
including a full review of our loyalty programme to promote
initiatives.
Outlook
BOTB has delivered increased revenues and profits slightly ahead
of management's expectations and remains cash generative, with a
strong balance sheet and sufficient funds to invest in our online
growth. We believe the streamlined, online-only business is well
positioned for the new financial year which has started well and I
look forward to updating shareholders on further progress in due
course.
KEY PERFORMANCE INDICATORS
The Directors have monitored the performance of the Company and
Group with particular reference to the following key performance
indicators:
1. Sales, both online and at retail sites, compared to the prior year.
2. Marketing efficiency, calculated using the twelve month
Lifetime Value per customer, against the Cost per Acquisition.
RISK MANAGEMENT
In order to execute the Company's strategy, the Company will be
exposed to both financial and non-financial risks. The Board has
overall responsibility for the Company's risk management and it is
the Board's role to consider whether those risks identified by
management are acceptable within the Company's strategy and risk
appetite. The Board therefore regularly reviews the principal risks
and considers how effective and appropriate the controls that
management has in place to mitigate the risk exposure are and will
make recommendations to management accordingly.
Financial Risk Management
Credit risk
The exposure to credit risk is limited to the carrying amounts
of financial assets. There is considered to be little exposure to
credit risk arising on receivables due to the low value of
receivables held at the year-end. The credit risk arising on cash
balances is limited because the third parties are banks with high
credit ratings assigned by international credit rating
agencies.
Liquidity risk
Sufficient cash balances are maintained to ensure that there are
available funds for operations. Operations are financed principally
from equity and cash reserves.
Non-financial Risk Management
Interruption to website and associated IT infrastructure
As the Company and Group now operate substantially online, they
are heavily reliant on the effective operation of their website and
associated IT infrastructure. Any interruption to the website or IT
infrastructure would therefore have an immediate and significant
impact on the Company and Group.
The Company and Group have various processes and controls in
place to ensure the likelihood of interruption is minimised and, in
the unlikely event that the website or IT infrastructure failed, it
could be returned to operation in a short space of time. This
includes having contracts in place with third party suppliers to
ensure any potential source of interruption is identified promptly
and also to ensure that data, including customers' data, is
protected.
Management and key personnel
The success of the Company and the Group to a significant extent
is dependent on the Executive Directors and other senior managers.
To mitigate the risk of losing such personnel, the Company and
Group endeavour to ensure that they are fairly remunerated and well
incentivised.
Regulatory change
The Company and Group currently operate weekly skilled
competitions, which are not regulated. This could be subject to
change in the future and the Company and Group continue to seek
appropriate legal advice to ensure they comply with all relevant
legislation and licensing.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors are responsible for preparing the Annual Report
and the financial statements in accordance with applicable law and
regulations.
Company law requires the Directors to prepare financial
statements for each financial year. Under that law, the Directors
have elected to prepare the financial statements in accordance with
International Financial Reporting Standards as adopted by the
European Union ("IFRS"). Under company law, the Directors must not
approve the financial statements unless they are satisfied that
they give a true and fair view of the state of affairs of the
Company and the Group and of the profit or loss of the Group for
that period. In preparing these financial statements, the Directors
are required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- state that the financial statements comply with IFRS; and
- prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Company will
continue in business.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Company's and
the Group's transactions and disclose with reasonable accuracy at
any time the financial position of the Company and the Group and
enable them to ensure that the financial statements comply with the
Companies Act 2006. They are also responsible for safeguarding the
assets of the Company and the Group and hence for taking reasonable
steps for the prevention and detection of fraud and other
irregularities.
The Directors are responsible for the maintenance and integrity
of the corporate and financial information included on the
Company's website.
ON BEHALF OF THE BOARD
William Hindmarch
Chief Executive
19 June 2019
Notes 2019 2018
GBP GBP
CONTINUING OPERATIONS
Revenue 14,806,972 12,947,716
Cost of sales (6,541,790) (5,504,906)
------------ ------------
GROSS PROFIT 8,265,182 7,442,810
Administrative expenses (6,157,945) (5,843,662)
------------ ------------
OPERATING PROFIT BEFORE EXCEPTIONAL
ITEMS 2,107,237 1,599,148
Exceptional income 6 4,597,926 -
Exceptional expense 6 (2,023,500) -
------------ ------------
OPERATING PROFIT 4,681,663 1,599,148
Finance income 8 17,902 947
------------ ------------
PROFIT BEFORE INCOME TAX 9 4,699,565 1,600,095
Income tax 10 (858,411) (253,077)
------------ ------------
PROFIT FOR THE YEAR 3,841,154 1,347,018
------------ ------------
OTHER COMPREHENSIVE INCOME
Items that may be reclassified
to profit or loss
Exchange differences on translating
foreign operations (55) 1,578
OTHER COMPREHENSIVE INCOME FOR
THE
YEAR, NET OF INCOME TAX (55) 1,578
------------ ------------
TOTAL COMPREHENSIVE INCOME FOR
THE
YEAR 3,841,099 1,348,596
Profit attributable to:
Owners of the parent 3,841,154 1,347,018
------------ ------------
Total comprehensive income attributable
to:
Owners of the parent 3,841,099 1,348,596
------------ ------------
Earnings per share expressed in
pence per share
Basic from continuing operations 12 38.54 13.32
Diluted from continuing operations 12 38.52 13.29
Adjusted basic from continuing
operations 12 17.62 13.32
Adjusted diluted from continuing
operations 12 17.61 13.29
------------ ------------
The notes form part of this preliminary announcement
BEST OF THE BEST PLC
Consolidated Statement of Financial Position
As at 30 April 2019
Notes 2019 2018
GBP GBP
ASSETS
NON-CURRENT ASSETS
Intangible assets 14 9,200 127,316
Property, plant and equipment 15 1,117,368 1,144,830
Investments 16 - -
Deferred tax 21 12,578 40,445
---------- ----------
1,139,146 1,312,591
CURRENT ASSETS
Trade and other receivables 17 159,756 150,123
Cash and cash equivalents 18 2,544,636 2,322,073
---------- ----------
2,704,392 2,472,196
TOTAL ASSETS 3,843,538 3,784,787
---------- ----------
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 19 468,860 504,926
Share premium 199,324 199,324
Capital redemption reserve 236,517 200,451
Foreign exchange reserve 26,372 26,427
Retained earnings 351,641 614,838
---------- ----------
TOTAL EQUITY 1,282,714 1,545,966
---------- ----------
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 20 1,792,894 1,929,039
Tax payable 407,930 103,232
Provision 22 360,000 206,550
---------- ----------
TOTAL LIABILITIES 2,560,824 2,238,821
---------- ----------
TOTAL EQUITY AND LIABILITIES 3,843,538 3,784,787
---------- ----------
The financial statements were approved by the Board of Directors
on 19 June 2019 and were signed on its behalf by:
...................................
W S Hindmarch
Director
The notes form part of this preliminary announcement
BEST OF THE BEST PLC
Company Statement of Financial Position
As at 30 April 2019
Notes 2019 2018
GBP GBP
ASSETS
NON-CURRENT ASSETS
Intangible assets 14 9,200 127,316
Property, plant and equipment 15 1,117,368 1,144,830
Investments 16 - -
Deferred tax 21 12,578 40,445
---------- ----------
1,139,146 1,312,591
CURRENT ASSETS
Trade and other receivables 17 159,756 149,733
Cash and cash equivalents 18 2,544,311 2,315,988
---------- ----------
2,704,067 2,465,721
TOTAL ASSETS 3,843,213 3,778,312
---------- ----------
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 19 468,860 504,926
Share premium 199,324 199,324
Capital redemption reserve 236,517 200,451
Retained earnings 372,240 635,682
---------- ----------
TOTAL EQUITY 1,276,941 1,540,383
---------- ----------
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 20 1,798,342 1,927,439
Tax payable 407,930 103,940
Provision 22 360,000 206,550
---------- ----------
TOTAL LIABILITIES 2,566,272 2,237,929
---------- ----------
TOTAL EQUITY AND LIABILITIES 3,843,213 3,778,312
---------- ----------
The profit attributable to shareholders dealt with in the
financial statements of the Company was GBP3,840,909
(2018: GBP1,488,635).
The financial statements were approved by the Board of Directors
on 19 June 2019 and were signed on its behalf by:
...................................
W S Hindmarch
Director
The notes form part of this preliminary announcement
BEST OF THE BEST PLC
Consolidated Statement of Changes in Equity
For the year ended 30 April 2019
Capital
Called Share redemption
up premium reserve
share
capital
GBP GBP GBP
Balance at 1 May 2017 506,226 179,074 197,651
---------- ---------- ------------
Issue of share capital 1,500 20,250 -
Dividends paid - - -
Share re-purchase (2,800) - 2,800
---------- ---------- ------------
Transactions with owners (1,300) 20,250 2,800
---------- ---------- ------------
Profit for the year - - -
Other comprehensive income
Exchange differences arising
on translating
foreign operations - - -
Total comprehensive income - - -
---------- ---------- ------------
Balance at 30 April 2018 504,926 199,324 200,451
---------- ---------- ------------
Dividends paid - - -
Share re-purchase (36,066) - 36,066
---------- ---------- ------------
Transactions with owners (36,066) - 36,066
---------- ---------- ------------
Profit for the year - - -
Other comprehensive income
Exchange differences arising
on translating
foreign operations - - -
Total comprehensive income - - -
---------- ---------- ------------
Balance at 30 April 2019 468,860 199,324 236,517
---------- ---------- ------------
Foreign
exchange Retained
reserve earnings Total
GBP GBP GBP
Balance at 1 May 2017 24,849 962,108 1,869,908
---------- ------------ ------------
Issue of share capital - - 21,750
Dividends paid - (1,557,535) (1,557,535)
Share re-purchase - (136,753) (136,753)
Transactions with owners - (1,694,288) (1,672,538)
---------- ------------ ------------
Profit for the year - 1,347,018 1,347,018
Other comprehensive income
Exchange differences arising
on translating
foreign operations 1,578 - 1,578
---------- ------------ ------------
Total comprehensive income 1,578 1,347,018 1,348,596
---------- ------------ ------------
Balance at 30 April 2018 26,427 614,838 1,545,966
---------- ------------ ------------
Dividends paid - (605,915) (605,915)
Share re-purchase - (3,498,436) (3,498,436)
---------- ------------ ------------
Transactions with owners - (4,104,351) (4,104,351)
---------- ------------ ------------
Profit for the year - 3,841,154 3,841,154
Other comprehensive income
Exchange differences arising
on translating
foreign operations (55) - (55)
Total comprehensive income (55) 3,841,154 3,841,099
---------- ------------ ------------
Balance at 30 April 2019 26,372 351,641 1,282,714
---------- ------------ ------------
The notes form part of this preliminary announcement
BEST OF THE BEST PLC
Company Statement of Changes in Equity
For the year ended 30 April 2019
Capital
Called Share redemption
up premium reserve
share
capital
GBP GBP GBP
Balance at 1 May 2017 506,226 179,074 197,651
---------- ---------- ------------
Issue of share capital 1,500 20,250 -
Dividends paid - - -
Share re-purchase (2,800) - 2,800
Transactions with owners (1,300) 20,250 2,800
---------- ---------- ------------
Profit for the year - - -
Total comprehensive income - - -
---------- ---------- ------------
Balance at 30 April 2018 504,926 199,324 200,451
---------- ---------- ------------
Dividends paid - - -
Share re-purchase (36,066) - 36,066
---------- ---------- ------------
Transactions with owners (36,066) - 36,066
---------- ---------- ------------
Profit for the year - - -
Total comprehensive income - - -
---------- ---------- ------------
Balance at 30 April 2019 468,860 199,324 236,517
---------- ---------- ------------
Retained
earnings Total
GBP GBP
Balance at 1 May 2017 841,335 1,724,286
------------ ------------
Issue of share capital - 21,750
Dividends paid (1,557,535) (1,557,535)
Share re-purchase (136,753) (136,753)
Transactions with owners (1,694,288) (1,672,538)
------------ ------------
Profit for the year 1,488,635 1,488,635
Total comprehensive income 1,488,635 1,488,635
------------ ------------
Balance at 30 April 2018 635,682 1,540,383
------------ ------------
Dividends paid (605,915) (605,915)
Share re-purchase (3,498,436) (3,498,436)
------------ ------------
Transactions with owners (4,104,351) (4,104,351)
------------ ------------
Profit for the year 3,840,909 3,840,909
Total comprehensive income 3,840,909 3,840,909
------------ ------------
Balance at 30 April 2019 372,240 1,276,941
------------ ------------
The notes form part of this preliminary announcement
BEST OF THE BEST PLC
Consolidated Statement of Cash Flows
For the year ended 30 April 2019
Notes 2019 2018
GBP GBP
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations 28 4,763,838 2,236,879
Tax paid (525,846) (428,901)
------------ ------------
Net cash from operating activities 4,237,992 1,807,978
============ ============
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of intangible assets (9,200) (38,250)
Purchase of property, plant and
equipment (128,550) (14,137)
Sales of property, plant and equipment 208,770 131,917
Interest received 17,902 947
------------ ------------
Net cash from investing activities 88,922 80,477
============ ============
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from share issue - 21,750
Share re-purchase (3,498,436) (136,753)
Equity dividends paid (605,915) (1,557,535)
------------ ------------
Net cash from financing activities (4,104,351) (1,672,538)
============ ============
Increase in cash and cash equivalents 222,563 215,917
------------ ------------
Cash and cash equivalents at beginning
of year 2,322,073 2,106,156
------------ ------------
Cash and cash equivalents at end
of year 18 2,544,636 2,322,073
============ ============
The notes form part of this preliminary announcement
BEST OF THE BEST PLC
Company Statement of Cash Flows
For the year ended 30 April 2019
Notes 2019 2018
GBP GBP
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations 28 4,770,306 2,262,980
Tax paid (526,554) (431,839)
------------ ------------
Net cash from operating activities 4,243,752 1,831,141
============ ============
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of intangible assets (9,200) (38,250)
Purchase of property, plant and
equipment (128,550) (14,137)
Sales of property, plant and equipment 208,770 131,917
Interest received 17,902 947
------------ ------------
Net cash from investing activities 88,922 80,477
============ ============
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from share issue - 21,750
Share re-purchase (3,498,436) (136,753)
Equity dividends paid (605,915) (1,557,535)
------------ ------------
Net cash from financing activities (4,104,351) (1,672,538)
============ ============
Increase in cash and cash equivalents 228,323 239,080
------------ ------------
Cash and cash equivalents at beginning
of year 2,315,988 2,076,908
------------ ------------
Cash and cash equivalents at end
of year 18 2,544,311 2,315,988
============ ============
The notes form part of this preliminary announcement
BEST OF THE BEST PLC
Notes to the Preliminary Announcement
For the year ended 30 April 2019
1. GENERAL INFORMATION
The principal activity of the Company and the Group is to
operate weekly competitions to win luxury cars and other prizes
online.
These financial statements have been prepared in accordance with
International Financial Reporting Standards ("IFRS") and
International Financial Reporting Interpretation Committee
("IFRIC") Interpretations as issued by the International Accounting
Standards Board and adopted by the European Union and in accordance
with those parts of the Companies Act 2006 applicable to those
companies reporting under IFRS. The financial statements have been
prepared under the historical cost convention.
The principal accounting policies adopted in the preparation of
the financial statements are set out below. The policies have been
consistently applied to all years presented, unless otherwise
stated.
The financial statements are presented in Pounds Sterling. All
amounts, unless otherwise stated, have been rounded to the nearest
Pound.
The preparation of financial statements in compliance with
adopted IFRS requires the use of certain critical accounting
estimates. It also requires management to exercise judgement in
applying those accounting policies. The areas where significant
judgements and estimates have been made in preparing these
financial statements and their effect are disclosed in Note 4.
The Directors are satisfied that the Company and Group have
adequate resources to continue in business for the foreseeable
future. For this reason, they continue to adopt the going concern
basis in preparing the financial statements.
2. PRINCIPAL ACCOUNTING POLICIES
2.1 NEW STANDARDS, AMMENTS AND INTERPRETATIONS
The Company and Group applied for the first time certain
Standards, Amendments and Interpretations which are effective for
annual periods commencing on or after 1 May 2018. The Company and
Group have not early adopted any other Standards, Amendments or
Interpretations that have been issued but are not yet
effective.
IFRS 2 Share Based Payments
Amendments to IFRS 2 clarify the classification and measurement
of share-based payment transactions. The Amendments apply to
certain types of share-based payment transactions, including those
which are cash-settled and those with net settlement features and
also apply where an entity has to account for modifications of
share-based payment transactions from cash-settled to
equity-settled. The Company and Group have not entered into any of
these types of share-based payment transactions during the current
or prior year and the Amendments have therefore not affected the
Company or Group.
IFRS 9 Financial Instruments
Amendments to IFRS 9 address the classification, measurement,
impairment and de-recognition of financial assets and financial
liabilities together with a new hedge accounting model.
The Amendments have not resulted in any classification,
measurement, impairment or de-recognition changes to the Company's
or Group's financial assets and liabilities. In particular, the
Company's and Group's financial assets comprise of trade and other
receivables and cash and short-term deposits. These financial
assets continue to be classified and measured at amortised cost.
The Company's and Group's principal financial liabilities include
trade and other payables. These financial liabilities continue to
be classified and measured at amortised cost.
The Company and Group applies the simplified approach to
providing for expected credit losses in accordance with applicable
guidance for non-banking entities. Under the simplified approach
the Company and Group are required to measure lifetime expected
credit losses for all trade receivables.
2. PRINCIPAL ACCOUNTING POLICIES (continued)
2.1 NEW STANDARDS, AMMENTS AND INTERPRETATIONS (continued)
IFRS 15 Revenue from Contracts with Customers
The Standard is effective for periods beginning on or after 1
January 2018 and sets out at what point and how revenue is
recognised and also requires enhanced disclosures. Revenue
contracts should be recognised in accordance with a single,
principles based five-step plan and when control of goods and
services has transferred to the customer, with revenue recognised
at the value the Company and Group expects to be entitled to
receive.
The Company and Group have adopted IFRS 15 for the first time in
the year ended 30 April 2019, although the revenue recognition
policy remains unchanged from that previously disclosed in the 2018
financial statements and adopting IFRS 15 has not resulted in a
change of timing of revenue recognition for the Company or Group,
which continues to be recognised on the date that the result of an
individual competition is determined.
Adoption of IFRS 15 has not resulted in any changes to the
Company's and Group's results as previously reported.
IFRIC 22 Foreign Currency Transactions and Advance
Consideration
The Interpretation clarifies the accounting for transactions
that include the receipt or payment of advance consideration in a
foreign currency.
Adoption of the IFRIC has not resulted in any change in the
accounting for receipts or payments of advance consideration in a
foreign currency.
At the date of authorisation of these financial statements,
certain new Standards, Amendments and Interpretations to existing
Standards have been published but are not yet effective and have
not been adopted early by the Company and Group.
Management anticipates that all of the pronouncements will be
adopted in the accounting periods for the first period beginning
after the effective date of the pronouncement. Information on new
Standards, Amendments and Interpretations that are expected to be
relevant to the financial statements is provided below. Certain
other new Standards, Amendments and Interpretations have been
issued but are not expected to be relevant to the financial
statements.
IAS 12 Income Taxes
The Amendments result from the Annual Improvements 2015-2017
cycle and address the income tax consequences of dividends. The
Amendments are effective for accounting periods commencing on or
after 1 January 2019.
IFRS 16 Leases
The Standard will replace IAS 17 Leases and will eliminate the
classification of leases as either operating leases or finance
leases and, instead, introduce a single lessee accounting model.
The Standard provides a single lessee accounting model, specifying
how leases are recognised, measured, presented and disclosed. The
Directors are currently evaluating the financial and operational
impact of this Standard. This review will require an assessment of
all leases and the impact of adopting this Standard cannot be
reliably estimated until this work is substantially complete. The
Standard is effective for accounting periods commencing on or after
1 January 2019.
IFRIC 23 Uncertainty over Income Tax Treatments
IFRIC 23 is to be applied in determining the taxable profit or
loss, tax bases, unused tax losses, unused tax credits and tax
rates. It is to be applied where there is uncertainty over the
income tax treatment under IAS 12. The Interpretation is effective
for accounting periods commencing on or after 1 January 2019.
The Directors do not expect that the adoption of the Standards,
Amendments and Interpretations listed above will have a material
impact on the financial statements of the Company and Group in
future periods, although the detailed impact has not yet been
quantified.
2. PRINCIPAL ACCOUNTING POLICIES (continued)
2.2 BASIS OF CONSOLIDATION
The consolidated financial statements incorporate the financial
statements of the Company and entities controlled by the Company
(its subsidiary undertakings). Where necessary, adjustments are
made to the financial statements of the subsidiaries to bring their
accounting policies in line with those of the Group. All
intra-Group transactions, balances, income and expenses are
eliminated on consolidation.
2.3 REVENUE RECOGNITION
The Company and Group operate weekly competitions to win luxury
cars and other prizes online. Revenue represents the value of
tickets sold in respect of these competitions and is stated net of
VAT, where applicable, and returns, rebates and discounts. Revenue
in respect of weekly competitions is recognised on the date the
result of those individual competitions is determined, being the
point when all performance obligations have been fulfilled.
2.4 COST OF SALES
Cost of sales comprises principally of the cost of competition
prizes, duties, rent and the associated costs of operating retail
sites.
2.5 EXCEPTIONAL ITEMS
Exceptional items are those items the Company and Group consider
to be non-recurring or material in nature that may distort an
understanding of financial performance or impair comparability.
2.6 SEGMENT REPORTING
The accounting policy for identifying segments is based on
internal management reporting information which is reviewed by the
chief operating decision maker. The Company and Group are
considered to have a single business segment, being the operation
of weekly competitions to win luxury cars and other prizes.
2.7 RESEARCH AND DEVELOPMENT EXPITURE
Expenditure on research is recognised as an expense in the
period in which it is incurred.
Development costs are capitalised when all of the following
conditions are satisfied:
-- Completion of the intangible asset is technically feasible so
that it will be available for use or sale;
-- The Company or Group intends to complete the intangible asset and use or sell it;
-- The Company or Group has the ability to use or sell the intangible asset;
-- The intangible asset will generate probable future economic
benefits. Amongst other things, this requires that there is a
market for the output from the intangible asset or for the
intangible asset itself, or, if it is to be used internally, the
asset will be used in generating such benefits;
-- There are adequate technical, financial and other resources
to complete the development and to use or sell the intangible
asset; and
-- The expenditure attributable to the intangible asset during
its development can be measured reliably.
Development costs not meeting the criteria for capitalisation
are expensed as incurred.
2. PRINCIPAL ACCOUNTING POLICIES (continued)
2.8 FOREIGN CURRENCIES
Assets and liabilities in foreign currencies are translated into
Sterling at the rates of exchange ruling at the statement of
financial position date. Transactions in foreign currencies are
translated into Sterling at the rates of exchange ruling at the
date of the transaction. Exchange differences are taken into
account in arriving at the operating result.
The assets and liabilities in the financial statements of
foreign subsidiaries are translated into the Parent Company's
presentation currency at the rates of exchange ruling at the
statement of financial position date. Income and expenses are
translated at the actual rate on the date of the transaction. The
exchange differences arising from the retranslation of the opening
net investment in subsidiaries are recognised in other
comprehensive income and taken to the foreign exchange reserve in
equity. On disposal of a foreign subsidiary, the cumulative
translation differences are transferred to profit or loss as part
of the gain or loss on disposal.
2.9 SHARE BASED PAYMENT
The Company and Group have applied the requirements of IFRS 2 to
share option schemes allowing certain employees within the Group 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 option 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 actual 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.
2.10 PENSION CONTRIBUTIONS AND OTHER POST EMPLOYMENT
BENEFITS
The Company operates a money purchase pension scheme for certain
employees. The cost of the contributions is charged to the
statement of comprehensive income as incurred.
2.11 TAXATION
Current taxes are based on the results shown in the financial
statements and are calculated according to local tax rules, using
tax rates enacted or substantively enacted by the statement of
financial position date.
The tax currently payable is based on the taxable profit for the
year. Taxable profit/(loss) differs from the net profit/(loss)
reported in the statement of comprehensive income as it excludes
items of income or expense that are taxable or deductible in other
years and it further excludes items that are never taxable or
deductible.
Deferred tax is the tax expected to be payable or recoverable on
differences between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax bases used in
the computation of taxable profit and is accounted for using the
balance sheet liability method. Deferred tax liabilities are
generally recognised for all taxable temporary differences and
deferred tax assets are recognised to the extent that it is
probable that taxable profits will be available against which the
deductible temporary differences can be utilised. Such assets and
liabilities are not recognised if the temporary differences arise
from the initial recognition (other than in a business combination)
of other assets or liabilities in a transaction that affects
neither the tax profit nor the accounting profit.
The carrying amount of the deferred tax asset is reviewed at
each statement of financial position date and reduced to the extent
that it is no longer probable that sufficient taxable profits will
be available to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to
apply in the period when the liability is settled or the asset is
realised. Deferred tax is charged or credited in the statement of
comprehensive income, except when it relates to items charged or
credited directly to equity, in which case deferred tax is also
dealt with in equity.
2. PRINCIPAL ACCOUNTING POLICIES (continued)
2.12 IMPAIRMENT
The carrying amounts of the Company's and Group's assets are
reviewed at each statement of financial position date to determine
whether there is any indication of impairment. If any such
indicator exists, the asset's recoverable amount is estimated.
An impairment loss is recognised whenever the carrying amount of
an asset exceeds its recoverable amount. Impairment losses are
recognised in the statement of comprehensive income.
The recoverable amount of an asset is the greater of its net
selling price and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value
using a pre-tax discount rate that reflects the current market
assessments of the time value of money and the risks specific to
the asset.
An impairment loss is reversed if there has been a change in the
estimates used to determine the recoverable amount. An impairment
loss is reversed only to the extent that the asset's carrying
amount does not exceed the carrying amount that would have been
determined, net of depreciation and amortisation, if no impairment
loss had been recognised.
2.13 CURRENT VERSUS NON-CURRENT CLASSIFICATION
The Company and Group present assets and liabilities in the
statement of financial position based on current/non-current
classification. An asset is current when it is:
-- expected to be realised or intended to be sold or consumed in
the normal operating cycle; or
-- held primarily for the purpose of trading; or
-- expected to be realised within twelve months after the reporting period; or
-- cash or cash equivalents unless restricted from being
exchanged or used to settle a liability for at least twelve months
after the reporting date.
All other assets are classified as non-current.
A liability is current when:
-- it is expected to be settled in the normal operating cycle; or
-- it is held primarily for the purpose of trading; or
-- it is due to be settled within twelve months after the reporting period; or
-- there is no unconditional right to defer the settlement of
the liability for at least twelve months after the reporting
date.
The Company and Group classify all other liabilities as
non-current.
Deferred tax assets and liabilities are classified as
non-current assets and liabilities.
2. PRINCIPAL ACCOUNTING POLICIES (continued)
2.14 INTANGIBLE ASSETS
Intangible assets are recognised at cost less any accumulated
amortisation and impairment.
An intangible asset, which is an identifiable non-monetary asset
without physical substance, is recognised to the extent that it is
probable that the expected future economic benefits attributable to
the asset will flow to the Company or Group and that its cost can
be measured reliably. The asset is deemed to be identifiable when
it is separate or when it arises from contractual or other legal
rights.
The Company's and Group's intangible assets consist of its IT
platform, infrastructure and website. The Directors have estimated
the useful economic life of the assets to be three years and they
are being amortised over that period on a straight line basis.
2.15 PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment is stated at cost, net of
accumulated depreciation and accumulated impairment losses, if
any.
Depreciation is provided at the following annual rates in order
to write off each asset over its useful economic life:
Long leasehold property - 1% on cost
Improvements to property - 4% on cost
Display equipment - At varying rates on cost
Fixtures and fittings - At varying rates on cost
Motor vehicles - 25% on reducing balance
Computer equipment - At varying rates on cost
An item of property, plant and equipment is derecognised upon
disposal or when no future economic benefits are expected from the
use or disposal. Any gain or loss arising on de-recognition of the
asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in the
statement of comprehensive income when the asset is
derecognised.
The residual values, useful economic lives and methods of
depreciation are reviewed at each financial year end and adjusted
prospectively, if appropriate.
2.16 INVESTMENTS
Investments in subsidiaries are recorded at cost less any
provision for permanent diminution in value.
2.17 LEASES
The determination of whether an arrangement is or contains a
lease is based on the substance of the arrangement at the inception
of the lease. The arrangement is, or contains, a lease if
fulfilment of the arrangement is dependent on the use of a specific
asset or assets and the arrangement conveys a right to use the
asset or assets, even if that right is not explicitly specified in
an arrangement.
A lease is classified at the inception date as a finance lease
or an operating lease. A lease that transfers substantially all the
risks and rewards incidental to ownership to the Company and Group
is classified as a finance lease. The Company and Group have not
entered into any finance leases during any financial year included
in these financial statements.
An operating lease is a lease other than a finance lease.
Operating lease payments are recognised as an operating expense in
the statement of comprehensive income on a straight line basis over
the lease term.
2. PRINCIPAL ACCOUNTING POLICIES (continued)
2.18 PROVISIONS
Provisions are liabilities where the exact timing or amount of
the obligation is uncertain. Provisions are recognised when the
Company or Group has a present obligation (legal or constructive)
as a result of a past event, it is probable that an outflow of
resources embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of the amount of
the obligation. Where the time value of money is material,
provisions are discounted to current values using appropriate rates
of interest. The unwinding of the discounts is recorded in net
finance income or expense.
2.19 FINANCIAL INSTRUMENTS
Financial assets and liabilities are recognised in the Company's
and Group's statement of financial position when the Company and
Group become a party to the contractual provisions of the
instrument. The Company's and Group's financial instruments
comprise cash, trade and other receivables and trade and other
payables.
Trade and other receivables
Trade and other receivables are initially stated at their fair
value plus transaction costs, then subsequently at amortised cost
using the effective interest method, if applicable, less impairment
losses. Provisions against trade and other receivables are made
when there is objective evidence that the Company and Group will
not be able to collect all amounts due to them in accordance with
the original terms of those receivables. The amount of the write
down is determined as the difference between the asset's carrying
amount and the present value of estimated future cash flows.
Cash and cash equivalents
The Company and Group manage short-term liquidity through the
holding of cash and highly liquid interest-bearing deposits. Only
deposits that are readily convertible into cash with maturities of
three months or less from inception, with no penalty of lost
interest, are shown as cash and cash equivalents.
Trade payables
Financial liabilities are obligations to pay cash or other
financial assets and are recognised when the Company and Group
becomes a party to the contractual provisions of the instrument.
All financial liabilities are recorded at amortised cost using the
effective interest method, with interest-related charges recognised
as an expense in finance cost in the statement of comprehensive
income.
2.20 EQUITY
Equity comprises the following:
-- Called up share capital represents the nominal value of the equity shares;
-- Share premium represents the excess over nominal value of the
fair value of consideration received from the equity shares, net of
expenses of the share issue;
-- Capital redemption reserve represents the value of the
re-purchase by the Company of its own share capital;
-- Foreign exchange reserve represents accumulated exchange
differences from the translation of subsidiaries with a functional
currency other than Sterling; and
-- Retained earnings represent accumulated profits and losses
from incorporation and any credit arising under share based
payments
3. CAPITAL MANAGEMENT
The Company defines capital as the total equity of the Company.
The objective of the Company's capital management is to ensure that
it makes the maximum use of its capital to support its business and
to maximise shareholder value. There are no external constraints on
the Company's capital.
4. CRITICAL JUDGEMENTS AND ACCOUNTING ESTIMATES
The Company and Group make certain estimates and assumptions
regarding the future. Estimates and judgements are continually
evaluated based on historical experience and other factors,
including expectations of future events that are believed to be
reasonable under the circumstances. In the future, actual
expenditure may differ from these estimates and assumptions. The
estimates and assumptions that have a significant risk of causing a
material adjustment to the carrying amounts of assets and
liabilities within the next financial year are discussed below.
Impairment of assets
The Company and Group are required to consider assets for
impairment where such indicators exist, using value in use
calculations or fair value estimates. The use of these methods may
require the estimation of future cash flows and the choice of a
discount rate in order to calculate the present value of the cash
flows. Actual outcomes may vary.
Useful lives of property, plant and equipment and intangible
assets
Property, plant and equipment are depreciated and intangible
assets are amortised over their useful lives. Useful lives are
based on management's estimates, which are periodically reviewed
for continued appropriateness. Changes to estimates can result in
variations in the carrying values and amounts charged to the
statement of comprehensive income in specific periods.
5. SEGMENTAL REPORTING
For management purposes, the Company and Group are considered to
have one single business segment, being the operation of weekly
competitions to win luxury cars and other prizes. The Group
comprises Best of the Best PLC and its subsidiary company BOTB
Ireland Limited. BOTB Ireland Limited generated no sales during
either the current or prior year and it holds few assets and is
expected to have very little trading activity going forward. The
two companies do not transact with each other. Further segment
information is therefore not presented in these financial
statements.
Sales from UK activities totalled GBP12,098,896 (2018:
GBP10,386,359) whilst sales from non-UK activities totalled
GBP2,708,076 (2018: GBP2,561,357).
6. EXCEPTIONAL INCOME AND EXPENSE
On 19 May 2018, the Company received a retrospective VAT refund
from H M Revenue and Customs ("HMRC") on its "Spot the Ball" game
of GBP4,494,697 for the period from 1 March 2009 to 30 June 2017.
Accordingly, this sum, as well as an associated interest receipt,
has been recognised as exceptional income in the financial year. On
20 December 2018, the Company settled an agreed assessment issued
by HMRC for retrospective taxation, making a payment of
GBP1,758,875. Accordingly, this sum has been recognised as an
exceptional expense in the financial year, together with associated
legal and professional costs of GBP264,625 incurred in connection
with these claims.
7. EMPLOYEES AND DIRECTORS
Group Company
2019 2018 2019 2018
GBP GBP GBP GBP
Wages and salaries 1,772,484 2,420,722 1,772,484 2,308,814
Social security costs 218,326 265,978 218,326 254,367
Other pension costs 62,892 64,520 62,892 64,520
---------- ---------- ---------- ----------
2,053,702 2,751,220 2,053,702 2,627,701
========== ========== ========== ==========
The average monthly number of employees during the year,
including the Directors, was as follows:
Group Company
2019 2018 2019 2018
Number Number Number Number
Sales 10 37 10 32
Administration 16 18 16 18
Management 3 2 3 2
------- ------- ------- -------
29 57 29 52
======= ======= ======= =======
2019 2018
GBP GBP
Directors' remuneration 528,717 487,634
======== ========
The number of Directors to whom retirement benefits were
accruing was as follows:
2019 2018
Number Number
Money purchase schemes 2 2
======= =======
Information regarding the highest paid Director is as
follows:
2019 2018
GBP GBP
Emoluments 250,967 228,590
======== ========
8. FINANCE INCOME
2019 2018
GBP GBP
Finance income:
Deposit account interest 17,902 947
------- -----
9. PROFIT BEFORE INCOME TAX
The profit before income tax is stated after
charging/(crediting):
2019 2018
GBP GBP
Depreciation and impairment of property, plant
and equipment 80,174 126,036
Amortisation of intangible assets 127,316 89,067
Profit on disposal of property, plant and equipment (132,932) (31,658)
Operating lease expense - buildings 200,808 676,234
Operating lease expense - other 17,635 10,629
Foreign exchange losses/(gains) - 6,813
Auditor's remuneration
Audit fees 33,500 34,025
Taxation services 2,631 6,750
Other 22,500 13,000
---------- ---------
10. INCOME TAX
Analysis of tax expense
2019 2018
GBP GBP
Current tax:
Current year charge 830,544 256,558
Total current tax 830,544 256,558
======== ========
Deferred tax
Origination and reversal of temporary timing
differences 27,867 (3,481)
-------- --------
Total deferred tax 27,867 (3,481)
======== ========
Total tax charge for the year 858,411 253,077
======== ========
Factors affecting the tax expense
The tax assessed for the year is lower than the standard rate of
corporation tax in the UK. The difference is explained below:
2019 2018
GBP GBP
Profit on ordinary activities before income
tax 4,699,565 1,600,095
========== ==========
Profit on ordinary activities multiplied by
the standard rate of corporation
tax in the UK of 19% (2018: 19%) 892,917 304,018
Effects of:
Depreciation in excess of capital allowances 38,222 7,632
Other timing differences 1,074 (3,247)
Non-deductible expenses 5,018 12,574
Research and development enhanced deduction (78,820) (67,900)
Tax expense 858,411 253,077
========== ==========
Future tax developments
A reduction in the UK corporation tax rate from 19% to 17%,
effective from 1 April 2020, was substantively enacted on 15
September 2016. This will reduce the company's future tax charge
accordingly.
11. PROFIT OF THE PARENT COMPANY
As permitted by Section 408 of the Companies Act 2006, the
income statement of the Parent Company is not presented as part of
these financial statements. The parent Company's profit for the
financial year was GBP3,840,909 (2018: GBP1,488,635).
12. EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the earnings
attributable to the ordinary shareholders by the weighted average
number of ordinary shares outstanding during the year.
Adjusted earnings per share is calculated by dividing the
earnings attributable to the ordinary shareholders, before
exceptional income and exceptional expense and associated
corporation tax, by the weighted average number of ordinary shares
outstanding during the year.
Diluted and adjusted diluted earnings per share is calculated
using the weighted average number of shares outstanding during the
year, adjusted to assume the exercise of all dilutive potential
ordinary shares under the company's share option plans.
2019 2018
Profit for the year and basic and diluted
earnings attributable to the
owners of the parent - GBP 3,841,154 1,347,018
------------ ------------
Adjusted profit for the year and basic and
diluted earnings attributable to the
owners of the parent - GBP 1,755,869 1,347,018
------------ ------------
Weighted average number of ordinary shares
- number 9,965,495 10,112,997
Basic earnings per share - pence 38.54p 13.32p
Adjusted basic earnings per share - pence 17.62p 13.32p
------------ ------------
Adjusted weighted average number of ordinary
shares - number 9,971,206 10,137,887
Diluted earnings per share - pence 38.52p 13.29p
Adjusted diluted earnings per share - pence 17.61p 13.29p
============ ============
13. DIVIDS
The Company paid a final dividend of 1.5 pence per share on 21
September 2018, as recommended in the financial statements to 30
April 2018. Furthermore, a Special Dividend of 4.5 pence per share
was paid on 20 July 2018 to shareholders on the register at the
close of business on 6 July 2018.
The Board is recommending a final dividend of 2.0 pence per
share (2018: 1.5 pence per share) for the full year ending 30 April
2019 subject to shareholder approval at the Annual General Meeting
on 11 September 2019. The final dividend will be paid on 27
September 2019 to shareholders on the register on 13 September
2019.
14. INTANGIBLE ASSETS - GROUP AND COMPANY
Development
costs
GBP
COST
At 1 May 2018 305,450
Additions 9,200
------------
At 30 April 2019 314,650
------------
AMORTISATION
At 1 May 2018 178,134
Charge for year 127,316
------------
At 30 April 2019 305,450
------------
NET BOOK VALUE
2019 9,200
------------
2018 127,316
============
14. INTANGIBLE ASSETS - GROUP AND COMPANY (continued)
Development
costs
GBP
COST
At 1 May 2017 267,200
Additions 38,250
------------
At 30 April 2018 305,450
------------
AMORTISATION
At 1 May 2017 89,067
Charge for year 89,067
------------
At 30 April 2018 178,134
------------
NET BOOK VALUE
2018 127,316
------------
2017 178,133
============
15. PROPERTY, PLANT AND EQUIPMENT - GROUP AND COMPANY
Long Improvements Display Fixtures
leasehold to property equipment and fittings
GBP GBP GBP GBP
COST
At 1 May 2018 954,034 25,950 473,591 170,219
Additions - - - 2,110
Disposals - - (370,927) -
----------- ------------- ----------- --------------
At 30 April 2019 954,034 25,950 102,664 172,329
=========== ============= =========== ==============
DEPRECIATION AND IMPAIRMENT
At 1 May 2018 6,998 2,078 342,970 160,717
Charge for the year 3,500 1,090 31,106 11,612
Eliminated on disposals - - (297,183) -
----------- ------------- ----------- --------------
At 30 April 2019 10,498 3,168 76,893 172,329
=========== ============= =========== ==============
NET BOOK VALUE
2019 943,536 22,782 25,771 -
=========== ============= =========== ==============
2018 947,036 23,872 130,621 9,502
=========== ============= =========== ==============
Motor Computer
vehicles equipment Total
GBP GBP GBP
COST
At 1 May 2018 58,275 115,137 1,797,206
Additions 112,582 13,858 128,550
Disposals (15,486) - (386,413)
---------- ----------- ----------
At 30 April 2019 155,371 128,995 1,539,343
========== =========== ==========
DEPRECIATION AND IMPAIRMENT
At 1 May 2018 35,078 104,535 652,376
Charge for the year 21,085 11,781 80,174
Eliminated on disposals (13,392) - (310,575)
---------- ----------- ----------
At 30 April 2019 42,771 116,316 421,975
========== =========== ==========
NET BOOK VALUE
2019 112,600 12,679 1,117,368
========== =========== ==========
2018 23,197 10,602 1,144,83
========== =========== ==========
15. PROPERTY, PLANT AND EQUIPMENT - GROUP AND COMPANY
(continued)
Long Improvements Display Fixtures
leasehold to property equipment and fittings
GBP GBP GBP GBP
COST
At 1 May 2017 954,034 25,950 713,060 170,219
Additions - - - -
Disposals - - (239,469) -
----------- ------------- ----------- --------------
At 30 April 2018 954,034 25,950 473,591 170,219
=========== ============= =========== ==============
DEPRECIATION AND IMPAIRMENT
At 1 May 2017 3,500 1,040 414,855 139,177
Charge for the year 3,498 1,038 67,325 21,540
Eliminated on disposals - - (139,210) -
----------- ------------- ----------- --------------
At 30 April 2018 6,998 2,078 342,970 160,717
=========== ============= =========== ==============
NET BOOK VALUE
2018 947,036 23,872 130,621 9,502
=========== ============= =========== ==============
2017 950,534 24,910 298,205 31,042
=========== ============= =========== ==============
Motor Computer
vehicles equipment Total
GBP GBP GBP
COST
At 1 May 2017 58,275 101,000 2,022,538
Additions - 14,137 14,137
Disposals - - (239,469)
---------- ----------- ----------
At 30 April 2018 58,275 115,137 1,797,206
========== =========== ==========
DEPRECIATION AND IMPAIRMENT
At 1 May 2017 27,341 79,637 665,550
Charge for the year 7,737 24,898 126,036
Eliminated on disposals - - (139,210)
---------- ----------- ----------
At 30 April 2018 35,078 104,535 652,376
========== =========== ==========
NET BOOK VALUE
2018 23,197 10,602 1,144,830
========== =========== ==========
2017 30,934 21,363 1,356,988
========== =========== ==========
16. INVESTMENTS
Group
Unlisted
investments
GBP
COST
At 1 May 2018 and 30 April 2019 70,000
-------------
IMPAIRMENT
At 1 May 2018 and 30 April 2019 70,000
NET BOOK VALUE
At 1 May 2018 and 30 April 2019 -
=============
Unlisted investments relate to the cost of acquiring options in
another company.
Company
Shares
in group Unlisted
undertakings investments Total
GBP GBP GBP
COST
At 1 May 2018 and 30 April 2019 85 70,000 70,085
============== ============== ========
IMPAIRMENT
At 1 May 2018 and 30 April 2019 85 70,000 70,085
============== ============== ========
NET BOOK VALUE
At 1 May 2018 and 30 April - - -
2019
============== ============== ========
Shares in Group undertakings comprise of the following
subsidiary company:
Name of company Nature of business % holding Country of incorporation
BOTB Ireland Competition 100 Republic of Ireland
Limited operator
17. TRADE AND OTHER RECEIVABLES - GROUP AND COMPANY
Group Company
2019 2018 2019 2018
GBP GBP GBP GBP
Trade receivables 765 10,961 765 10,961
Other receivables 32,560 56,290 32,560 56,290
Prepayments and accrued income 126,431 82,872 126,431 82,482
-------- -------- -------- --------
159,756 150,123 159,756 149,733
======== ======== ======== ========
The fair value of trade and other receivables approximates to
their carrying values.
18. CASH AND CASH EQUIVALENTS - GROUP AND COMPANY
Group Company
2019 2018 2019 2018
GBP GBP GBP GBP
Cash in hand 2,543,094 3,783 2,542,770 3,783
Bank accounts 1,542 2,318,290 1,541 2,312,205
---------- ---------- ---------- ----------
2,544,636 2,322,073 2,544,311 2,315,988
========== ========== ========== ==========
19. CALLED UP SHARE CAPITAL - COMPANY
Allotted, issued and fully 2019 2018 2019 2018
paid
Ordinary shares of 5pence Number Number GBP GBP
each
At the start of the year 10,098,580 10,124,580 504,926 506,226
Shares allotted during the
year - 30,000 - 1,500
Purchased for cancellation
in the year (721,327) (56,000) (36,066) (2,800)
----------- ----------- --------- --------
At the end of the year 9,377,253 10,098,580 468,860 504,926
=========== =========== ========= ========
On 15 February 2019, subject to a circular dated 30 January
2019, shareholders approved a proposed tender offer by finnCap Ltd
to purchase Ordinary shares in the Company up to approximately 7.1%
of the issued share capital at a price of 485 pence per share.
Further to a repurchase agreement between the Company and finnCap
Ltd, the Company exercised the call option and bought back and
subsequently cancelled, 721,327 Ordinary Shares at a price of 485
pence per share.
No shares were allotted during the year. In the prior year,
30,000 Ordinary shares of GBP0.05 per share were allotted as fully
paid at a premium of GBP0.675 per share. Furthermore, in the prior
year 56,000 Ordinary shares of GBP0.05 per share were purchased by
the Company and subsequently cancelled.
An amount equal to the nominal value of the Ordinary shares has
been transferred to the capital redemption reserve. The amount paid
per share was GBP4.85 (2018: Between GBP2.20 and GBP2.55). The
difference between the amount paid and the nominal value of the
shares re-purchased has been deducted from the retained earnings
reserve.
20. TRADE AND OTHER PAYABLES - GROUP AND COMPANY
Group Company
2019 2018 2019 2018
GBP GBP GBP GBP
Trade creditors 343,186 388,063 343,186 387,396
Amounts owed to group undertakings - - 5,448 -
Social security and other taxes 392,533 463,946 392,533 463,946
Other creditors 978,262 1,076,798 978,262 1,075,865
Contract liability balances 73,030 - 73,030 -
Pension creditor 5,883 232 5,883 232
---------- ---------- ---------- ----------
1,792,894 1,929,039 1,798,342 1,927,439
========== ========== ========== ==========
21. DEFERRED TAX - GROUP AND COMPANY
Group Company
2019 2018 2019 2018
GBP GBP GBP GBP
Asset at 1 May 40,445 36,964 40,445 36,964
Movement in the year (27,867) 3,481 (27,867) 3,481
--------- ------- --------- -------
Asset at 30 April 12,578 40,445 12,578 40,445
========= ======= ========= =======
Deferred tax assets have been recognised in respect of
accelerated capital allowances giving rise to deferred tax assets
where the Directors believe that it is probable that these assets
will be recovered.
22. PROVISIONS - GROUP AND COMPANY
Group Company
2019 2018 2019 2018
GBP GBP GBP GBP
At 1 May 206,550 129,816 206,550 129,816
Utilised during the year (151,050) (129,816) (151,050) (129,816)
Additions 304,500 206,550 304,500 206,550
Asset at 30 April 360,000 206,550 360,000 206,550
========== ========== ========== ==========
The Directors have assessed that its retail site lease is
onerous and a provision has been recognised in respect of future
rental payments.
23. SHARE BASED PAYMENT - GROUP AND COMPANY
Details of the share options outstanding during the year are as
follows:
Outstanding Outstanding
Grant date at 1 May Granted Exercised Forfeited at 30 April Expiry Exercise
2018 2019 date price
19-12-2017 45,000 - - - 45,000 19-12-2027 GBP2.25
The Company and Group operate a share option scheme for certain
Directors and employees. Options are exercisable at a price defined
by the individual option agreements. The vesting period on each
option is three years. If the options remain unexercised during the
specified period from the date of grant, the options expire.
Options are generally forfeited if the employee leaves the Group
before the options vest, however, this is at the discretion of the
Board.
Details of the share options and the weighted average exercise
price ('WAEP') outstanding during the year are as follows:
2019 2019 2018 2018
Number WAEP Number WAEP
Outstanding at the beginning
of year 45,000 225.00 30,000 72.50
Granted during the year - - 45,000 225.00
Exercised during the year - - (30,000) (72.50)
Lapsed during the year - - - -
------- ------- --------- --------
Outstanding at the end
of the year 45,000 225.00 45,000 225.00
------- ------- --------- --------
Exercisable at the end - - - -
of the year
======= ======= ========= ========
The weighted average remaining contractual life of share options
outstanding as at 30 April 2019 was 8 years and 8 month (2018: 9
years and 8 months).
No amount has been recognised in these financial statements in
respect of share option charges as the amount would be
insignificant (2018: GBPNil).
24. LEASE COMMITMENTS - GROUP AND COMPANY
Future minimum rentals payable under operating leases at 30
April 2019 were as follows:
Buildings Other
2019 2018 2019 2018
GBP GBP GBP GBP
Due within one year 124,125 223,050 4,437 6,762
Due between one and two years 226,050 368,000 - -
350,175 591,050 4,437 6,762
======== ======== ====== ======
25. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS - GROUP
AND COMPANY
The principal financial assets of the Group are bank balances.
The Group's principal financial liabilities are trade and other
payables. The main purpose of these financial instruments is to
generate sufficient working capital for the Group to continue its
operations.
Credit risk
The Group's exposure to credit risk is limited to the carrying
amounts of financial assets recognised at the statement of
financial position date, as summarised below. Management considers
that the Group is exposed to little credit risk arising on its
receivables due to the value of those receivables. The credit risk
on cash balances is limited because the third parties are banks
with high credit ratings assigned by international credit rating
agencies.
2019 2018
GBP GBP
Financial assets classified
as loans and receivables - carrying
amounts:
Trade receivables 765 10,961
Other receivables 32,560 56,290
Cash and cash equivalents 2,544,636 2,322,073
---------- ----------
2,577,961 2,389,324
========== ==========
Liquidity risk
The Group's funding strategy is to generate sufficient working
capital to settle liabilities as they fall due and to ensure
sufficient financial resource is in place to support management's
long-term growth plans.
The Group's financial liabilities have contractual maturities as
follows:
2019 2018
GBP GBP GBP GBP
Financial liabilities measured Up to After Up to After
at amortised cost - carrying 1 year 1 year 1 year 1 year
amounts
Trade and other payables 1,719,864 - 1,929,039 -
---------- -------- ---------- --------
1,719,864 - 1,929,039 -
========== ======== ========== ========
26. RELATED PARTY DISCLOSURES
M W Hindmarch is considered to be a related party as he is a
Non-Executive Director of the Company. During the year ended 30
April 2019, payments were made to him totaling GBP12,000 (2018:
GBP12,000) in respect of consultancy services provided. The total
amount due to M W Hindmarch at 30 April 2019 was GBP1,000 (2018:
GBP1,000).
27. ULTIMATE CONTROLLING PARTY
The Company is under the ultimate control of W S Hindmarch, the
Chief Executive Director of the Company, by virtue of his
controlling shareholding at the statement of financial position
date.
28. RECONCILIATION OF PROFIT BEFORE INCOME TAX TO CASH GENERATED
FROM OPERATIONS
Group Company
2019 2018 2019 2018
GBP GBP GBP GBP
Profit before income tax 4,699,565 1,600,095 4,699,320 1,741,712
Depreciation charges 80,174 126,036 80,174 126,036
Amortisation charges 127,316 89,067 127,316 89,067
Profit on disposal of property,
plant and equipment (132,932) (31,658) (132,932) (31,658)
Investment impairment charge - 70,000 - 70,085
Exchange differences (55) 1,578 - -
Finance income (17,902) (947) (17,902) (947)
---------- ---------- ---------- ----------
4,756,166 1,854,171 4,755,976 1,994,295
(Increase) / decrease in trade
and other receivables (9,633) 95,063 (10,023) 34,323
(Decrease) / increase in trade
and other payables (136,145) 210,911 (129,097) 157,628
Increase in provision 153,450 76,734 153,450 76,734
---------- ---------- ---------- ----------
Cash generated from operations 4,763,838 2,236,879 4,770,306 2,262,980
========== ========== ========== ==========
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR SFAFWUFUSEDM
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June 20, 2019 02:00 ET (06:00 GMT)
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