REG - Best of the Best PLC - Final Results
16/06/2022 07:00
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RNS Number : 0556P Best of the Best PLC 16 June 2022
Best of the Best plc
("Best of the Best", "BOTB", "the Company" or "the Group")
Preliminary results for the year ended 30 April 2022
Profitable, cash generative with no debt and a large and loyal customer base
Best of the Best plc (LSE: BOTB), the provider of online competitions to win
cars and other prizes, is pleased to report its preliminary results for the
year ended 30 April 2022 (the "Period")
Financial highlights:
· Revenue of £34.68 million, significantly greater than the £17.79
million delivered in the pre-pandemic year of FY2020, the most appropriate
comparative period. In FY2021, the Group delivered £45.68m as the business
benefited from what transpired to be particularly favourable trading
conditions during the pandemic.
· Profit before tax of £5.14 million is up by 22.2% on FY2020
(£4.21million) although lower than FY2021 (£14.06 million) owing to the
operational leverage experienced last year.
· A very strong financial position and cash generation maintained, with
cash balances of £10.82 million as at 30 April 2022, an increase from the
£8.34m for the six months ended 31 October 2021.
· The Group is debt free and has net assets of £8.09 million,
substantially underpinned by property and cash.
· Earnings per share was 45.30p (2020: 37.51p, 2021: 122.52p)
· In line with the Group's progressive dividend policy, the Board is
proposing a 20% year-on-year increase in the final dividend to 6.0p per
ordinary share to be paid to shareholders on 30 September 2022 (2021: 5.0p,
2020: 3.0p).
· Tender offer announced to return up to circa £6.275 million to
shareholders.
· Trading for the new financial year has started in line with
management expectations.
William Hindmarch, Chief Executive, said:
"This year saw the Company navigating a post pandemic world and understanding
changing customer behaviour. Management has remained sharply focused on
shaping the Company for revenues that are lower than during the successive
lockdowns in 2020-21, albeit which are still double the levels experienced
pre-pandemic.
Our ongoing profitability, financial performance and improved capital
efficiency are largely a result of the decision to convert BOTB from a bricks
and mortar business into an online only operator. In achieving this
conversion well ahead of the pandemic, the Company was able to benefit from
its operational gearing and specific trading patterns experienced during this
unusual period. The Company has, however, delivered consistently strong
results over many years and management has been adjusting the various business
levers at its disposal, to ensure that where revenues and customer acquisition
are settling and normalising post pandemic, the business continues to produce
strong profits and cash generation.
Whilst the period has not been without its challenges, with so many changing
elements in this financial year, we are pleased to have produced financial
results slightly above expectations that we set out at the time of our interim
financial results in January 2022.
BEST OF THE BEST PLC
Preliminary Results (continued)
For The Year Ended 30 April 2022
BOTB is underpinned by solid financials, a large and loyal customer base, and
a proven business model. We also benefit from a diverse offering and a broad
addressable market. We will continue to sensibly assess current trading and
remain focused in the short term on both profit and cash generation to support
and further strengthen our platform, as we then to look to further business
development opportunities and ongoing growth in due course. We are pleased
to announce today an increased proposed final dividend of 6.0p per share, as
well as a tender offer to buy back shares at £6.00 per share. Trading for
the new financial year has started in line with management expectations"
Enquiries:
Best of the Best plc William Hindmarch, Chief Executive T: 020 7371 8866
Rupert Garton, Commercial Director
Buchanan Chris Lane T: 0207 466 5000
(Public Relations & Press) Toto Berger
Oakvale Capital Daniel Burns T: 0207 580 3838
(Financial Adviser) Kieran Davey
finnCap Corporate Finance T: 020 7220 0500
(Nominated Adviser and Broker) Carl Holmes
Kate Bannatyne
Teddy Whiley
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
BEST OF THE BEST PLC
Preliminary Results (continued)
For The Year Ended 30 April 2022
CHIEF EXECUTIVE'S STATEMENT
We have been dedicated to understanding changing customer behaviour in a
post-pandemic world, while ensuring that we protect the efficiency and
profitability of new player recruitment. Management has also remained
sharply focused on shaping the Company for revenues that are lower than during
the successive lockdowns in 2020-21, albeit which are still nearly double the
levels experienced pre-pandemic, thus delivering a profitable and cash
generative set of numbers.
The Company has delivered consistently strong results over recent years and
management has been adjusting the various business levers at our disposal, to
ensure that where revenues and customer acquisition are settling and
normalising post pandemic, the business continues to produce strong profits
and cash generation. Whilst this has not been without its challenges, with
so many changing elements in the period under review, we are pleased to have
produced financial results slightly above expectations that we set out at the
time of our interim financial results in January 2022.
We are preparing the Company for a return to steady ongoing growth that, while
not at the levels achieved in FY2021, is significantly above the historic
levels that we achieved ahead of the conversion of the business from a bricks
and mortar retail player to an online only operator. As we embark on the new
financial year, we remain confident that BOTB is underpinned by very solid
financials, a large and loyal customer base, and a proven business model.
There will understandably be continued focus in the short term on both profit
and cash generation to support and strengthen our platform, as we then to look
to further business development opportunities and growth in due course.
Final Results
Revenue for the year ended 30 April 2022 was £34.68 million (2020: £17.79
million, 2021: £45.68 million) and profit before tax was £5.14 million
(2020: £4.21 million, 2021: £14.06 million). Earnings per share were
45.30p (2020: 37.51p, 2021: 122.52p).
BOTB remains highly cash generative and a total of £5.90 million of cash flow
was generated from operations during the period. Net assets at 30 April 2022
stood at £8.09 million (2020: £3.30 million, 2021: £8.96 million),
underpinned by cash balances of £10.82 million (2020: £5.2 million, 2021:
£11.8 million) and our 965-year leasehold office properties valued at £0.95
million. The Group is debt free.
Dividends
In line with its progressive dividend policy, the Board is recommending a
final dividend of 6.0p per share (2021: 5.0p, 2020: 3.0p) for the full year
ended 30 April 2022 subject to shareholder approval at the Annual General
Meeting on 14 September 2022. The final dividend will be paid on 30
September 2022 to shareholders on the register on 16 September 2022.
Strategy, competitions, pricing and partnerships
With a principally fixed cost operating model and high levels of operational
gearing, the business is sensitive to changes in revenue and the cost of
prizes given away. In order to better shape the business for steady ongoing
growth we have recently trialled some changes to the product line-up,
re-balancing the three principal weekly competitions, to two enhanced ones.
BEST OF THE BEST PLC
Preliminary Results (continued)
For The Year Ended 30 April 2022
Our principal competitions are now the Weekly Dream Car and Midweek Lifestyle
Competitions, the latter being the result of a recent trial combining our
Midweek Car and Lifestyle competitions. Both competitions offer the
opportunity to win brand new cars, with the former operating via Spot the Ball
and the latter via a suitably skill-based question.
Our flagship Dream Car competition offers a choice of up to 200 models,
combined with the ability to add up to £50,000 in cash with your prize.
Ticket prices start from just 90p, with our largest individual prizes valued
at up to £250,000. Alongside weekly themed 'In the Headlights' promotions we
have been trialling the addition of higher value prizes and cash sums, with
total cash-included prizes available in excess of £300,000. These have proven
popular and have assisted average order values.
With an entry point ticket price costing 50p, the recently introduced Midweek
Lifestyle Competition features a more focussed selection of lower value cars,
top-end motorbikes, luxury watches, holidays, top technology and cash
prizes. In combination with the Dream Car Competition, this gives players
the opportunity to win a car twice a week and also addresses the wider non-car
market.
During FY2022 we ran multiple trials producing valuable data, including
variable pricing structures, boosted cash add-ons, and bundled prizes. This
data contributes to our weekly schedule of promotions and offers that keep the
competitions fresh, interesting and relevant to our customer base.
In an environment where inflationary pressures are well documented we have
sought to protect our margins not only through tight cost control, but also by
passing on increased car manufacturer RRPs, in the form of slightly increased
ticket prices. With our low ticket prices, these increases often amount to
only 5p - 10p and customers have been understanding.
Whilst the COVID-19 restrictions in place at the beginning of the financial
year significantly curtailed the ability of our presenting team to surprise
winners at home or at work, we are now pleased to be fully back on the road
filming our winners in person, which has been well received by our players and
continues to provide the very engaging content for which BOTB has become so
well known. Covid has kept us away from the Goodwood Festival of Speed for the
past two years, but we are pleased to be back again this year with a fantastic
stand in front of a perfect audience, and where we will be able to engage with
many customers, both old and new.
BOTB now has a customer base of over 1.8 million contactable players, which
supports existing competitions and which we believe can also provide us with
new revenue opportunities. We have previously identified the potential to
introduce new products (other than competitions) to our customers, to leverage
our database by building revenues streams from third party advertisers and
partners, and to seek additional partnership and possibly white-label
opportunities with e.g. football clubs, insurance companies and others. We are
pleased to have recently recruited a full time Partnerships Lead to spearhead
this effort, and whilst it is still early days, some interesting ideas and
leads are starting to develop.
IT development
During the year, we completed a major project to transfer all BOTB's CRM
activities to the Emarsys platform, which has allowed us to materially improve
our approach and future-proof the technology we use. In short, the new
platform has increased efficiency and productivity on a daily basis, allowing
quicker construction of communications, more reliable rendering of emails
across all clients and devices with a much more detailed interface. It also
gives us a single customer view, allowing consolidation of all of our CRM and
data into one platform.
BEST OF THE BEST PLC
Preliminary Results (continued)
For The Year Ended 30 April 2022
We have also been able to retire numerous third-party CRM vendors, making
meaningful cost savings. Emarsys' Web Channel has replaced Qubit which now
allows us to personalise elements on-site at a 1:1 level, from pop-ups ads and
site-ribbons to bespoke creative and layouts. We have also retired Litmus, as
Emarsys' email rendering and inbox preview tool is more robust, whilst the 3rd
party Survey Tools have been replaced by Emarsy's own form and data capture
capabilities.
Marketing and CRM
As previously reported, customer acquisition during the financial year has
been less efficient than in prior periods, both as a result of Apple's iOS 14
release affecting audience targeting, alongside material increases in CPMs
particularly on Meta Group platforms. Despite this, we continue to see a
positive ROI when measuring cost per acquisition against the 24-month lifetime
value of newly acquired players. We remain focused on optimisation and
investment in the most efficient and trackable digital channels, supported by
traditional media, to acquire new players and retain existing ones. At the
same time, we have continued testing new channels focused on raising brand
awareness, allied with the appointment of an agency to improve our SEO.
Alongside this, we have run regular promotions to drive traffic to the website
from the significantly larger customer base of players acquired during the
pandemic, as well as interacting with them on our social pages, which continue
to grow and now amount to 860k followers in total. Much of our CRM and
customer service is carried out via daily content updates on our social media
accounts, mainly Facebook (420,000 followers) and Instagram (312,000
followers).
As indicated above, our previous CRM platform was email only and everything
else was manually implemented via a host of third-party providers, but we are
now able to use Emarsys to create customer journeys and interaction points
across multiple channels, all from one platform and dataset. Email, Rich App
Push, onsite experience, and retargeting are all now part of the multi-channel
CRM journey. Emarsys also has much improved test & optimisation
functionality, making it an omnichannel solution that will benefit the
business as we continue to grow and leverage the entire technology suite
available.
Board Changes
The Board continues to place significant importance on independent corporate
governance and as a result David Firth, an existing Independent Non-Executive
Director, was appointed Independent Non-Executive Chairman on 1 October 2021.
In addition, and as separately announced today, the Company is pleased to
announce the appointment of Joanna (Jo) Bucci as a further Independent
Non-Executive Director, who will join the Board on 1 July 2022.
Jo is a commercially astute operator with proven success leading major
business transformation and business growth, with extensive experience in
sport, gaming, lotteries and media. She was responsible for the UK launch,
growth and global brand development of the Peoples Postcode Lottery, the
world's second largest privately funded organisation for good causes. In 2019,
Jo was appointed General Manager of The Sun Newspaper, where she was
responsible for financial performance, as well as setting and implementing
brand strategies for long-term multi-platform growth. Further details are set
out in the regulatory announcement covering Jo Bucci's appointment.
We are delighted that David has accepted the role of Independent Non-Executive
Chairman and that Jo has agreed to join the Board at this exciting time for
BOTB. We are confident that their considerable experience will significantly
strengthen the Board and the business. Following the appointment of Jo, the
Company will have three Executive Directors and three Non-Executive Directors,
two of which can be considered independent.
BEST OF THE BEST PLC
Preliminary Results (continued)
For The Year Ended 30 April 2022
Tender Offer
The Company is announcing today that it intends to return surplus cash to
Shareholders by way of a tender offer, pursuant to which finnCap Ltd, the
Company's broker, will purchase, as principal, up to approximately 11.11 per
cent. of the Company's Ordinary Shares (1 Ordinary Share for every 9 held) at
a price of 600 pence per Ordinary Share. These Ordinary Shares may then be
purchased from finnCap by the Company pursuant to a Repurchase Agreement.
The Company has been cash generative for a number of years and benefits from a
strong balance sheet with sufficient distributable cash reserves. Continued
profitable trading in recent periods has led to surplus cash on the balance
sheet and the Board believes that the Company does not require this level of
cash to fund its growth plans in the short term. Following the proposed
capital distribution, the Company will retain a robust balance sheet,
maintaining cash balances in excess of £2.0 million, which the Directors
consider to be sufficient working capital to fund its activities over the next
12-month period. As such, the Board deems it appropriate to return surplus
cash to shareholders via the Tender Offer.
In determining the level of return of value, the Board has taken into
consideration its aim of improving the Company's earnings per share, as well
as targeting a more efficient capital structure through returning excess
balance sheet cash to Shareholders. If the maximum number of Ordinary Shares
under the Tender Offer are acquired this will result in an amount of £6.275
million being paid to Qualifying Shareholders. The Company will shortly file
at Companies House an audited Company balance sheet as at 30 April 2022
demonstrating that it has sufficient distributable reserves.
The Proposals require shareholder approval under the Companies Act and all
shareholders will be receiving the information in a shareholder circular and
form of acceptance by post. If implemented, the Tender Offer will enable
Qualifying Shareholders to achieve a partial realisation of their holding at
600 pence per Ordinary Share.
Outlook
Emerging out of successive lockdowns and the pandemic era, we have been faced
with a very tough comparative financial period. Revenues are, however,
running at nearly twice the levels recorded pre-pandemic, when we exited our
last physical retail site and completed our successful transformation to a
fully online business. We are confident that in the longer term the business
is positioned to grow above the traditional growth rates experienced when
operations were focused on bricks and mortar retail.
During the period under review, the business traded slightly better than
market expectations as updated in January 2022 and, having exhibited the
incredible benefits of operational gearing during the financial year ended
April 2021, the Board remains fully focused on re-harnessing this
opportunity. We will continue to maintain a sharp focus on costs, and
prioritising only the most efficient marketing channels, acquiring new
customers profitably, through product development, by managing competition
frequency and margins, and by seeking additional revenue streams especially
through partnerships.
We remain a profitable, cash generative business with no debt and a large and
loyal customer base that remains engaged. Whilst we recognise that the wider
economic environment remains somewhat uncertain, which is evident in our
short-term outlook, we look to the medium and long term with confidence as we
push towards a return to steady growth. Trading for the new financial year has
started in line with management expectations.
I look forward to updating shareholders in due course.
BEST OF THE BEST PLC
Preliminary Results (continued)
For The Year Ended 30 April 2022
KEY PERFORMANCE INDICATORS
The Directors have monitored the performance of the Company with particular
reference to the following key performance indicators:
1. Sales compared to the prior year.
2. Marketing efficiency calculated using the 24-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 now operates wholly online, it is heavily reliant on the
effective operation of its website and associated IT infrastructure. Any
interruption to the website or IT infrastructure would therefore have an
immediate and significant impact on the Company.
The Company 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 to ensure that data, including customers' data, is protected.
BEST OF THE BEST PLC
Preliminary Results (continued)
For The Year Ended 30 April 2022
Management and key personnel
The success of the Company to a significant extent is dependent on the
Executive Directors and other senior managers. To mitigate the risk of
losing such personnel, the Company endeavour to ensure that they are fairly
remunerated and well incentivised.
Regulatory change
The Company currently operates weekly skilled competitions, which are not
regulated. This could be subject to change in the future and the Company
continue to seek appropriate legal advice to ensure they comply with all
relevant legislation and licensing.
ON BEHALF OF THE BOARD
William Hindmarch
Chief Executive
BEST OF THE BEST PLC
Consolidated Statement of Comprehensive Income
For The Year Ended 30 April 2022
Notes 2022 2021
£000 £000
CONTINUING OPERATIONS
Revenue 34,682 45,681
Cost of sales (15,272) (17,410)
GROSS PROFIT 19,410 28,271
Administrative expenses (14,271) (14,209)
OPERATING PROFIT 5,139 14,062
Finance income 7 2 1
PROFIT BEFORE INCOME TAX 8 5,141 14,063
Income tax 9 (877) (2,569)
PROFIT FOR THE YEAR 4,264 11,494
OTHER COMPREHENSIVE INCOME
Items that may be reclassified to profit or loss
Exchange differences on translating foreign operations - -
OTHER COMPREHENSIVE INCOME FOR THE
YEAR, NET OF INCOME TAX - -
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR 4,264 11,494
Profit attributable to:
Owners of the parent 4,264 11,494
Total comprehensive income attributable to:
Owners of the parent 4,264 11,494
Earnings per share expressed in pence per share
Basic from continuing operations 11 45.30 122.52
Diluted from continuing operations 11 44.37 121.82
The notes form part of this Preliminary Announcement
BEST OF THE BEST PLC
Consolidated Statement of Financial Position
As at 30 April 2022
Notes 2022 2021
£000 £000
ASSETS
NON-CURRENT ASSETS
Intangible assets 13 107 160
Property, plant and equipment 14 1,075 1,103
Investments 15 - -
1,182 1,263
CURRENT ASSETS
Trade and other receivables 16 184 271
Cash and cash equivalents 17 10,818 11,814
11,002 12,085
TOTAL ASSETS 12,184 13,348
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 18 471 471
Share premium 277 277
Capital redemption reserve 236 236
Foreign exchange reserve 35 27
Retained earnings 7,041 7,953
TOTAL EQUITY 8,060 8,964
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 19 3,625 3,053
Tax payable 475 1,317
Deferred tax 20 24 14
TOTAL LIABILITIES 4,124 4,384
TOTAL EQUITY AND LIABILITIES 12,184 13,348
The notes form part of this Preliminary Announcement
BEST OF THE BEST PLC
Company Statement of Financial Position
As at 30 April 2022
Notes 2022 2021
£000 £000
ASSETS
NON-CURRENT ASSETS
Intangible assets 13 107 160
Property, plant and equipment 14 1,075 1,103
Investments 15 - -
1,182 1,263
CURRENT ASSETS
Trade and other receivables 16 184 271
Cash and cash equivalents 17 10,818 11,814
11,002 12,085
TOTAL ASSETS 12,184 13,348
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 18 471 471
Share premium 277 277
Capital redemption reserve 236 236
Retained earnings 7,076 7,975
TOTAL EQUITY 8,060 8,959
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 19 3,625 3,058
Tax payable 475 1,317
Deferred tax 20 24 14
TOTAL LIABILITIES 4,124 4,389
TOTAL EQUITY AND LIABILITIES 12,184 13,348
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 2022
Capital redemption reserve
Called up Share premium
share capital
£000 £000 £000
Balance at 1 May 2020 469 199 236
Issue of share capital 2 78 -
Dividends paid - - -
Transactions with owners - - -
Profit for the year - - -
Other comprehensive income
Exchange differences arising on translating
foreign operations - - -
Total comprehensive income - - -
Balance at 30 April 2021 471 277 236
Dividends paid - - -
Transactions with owners - - -
Profit for the year - - -
Other comprehensive income
Exchange differences arising on translating
foreign operations - - -
Total comprehensive income - - -
Balance at 30 April 2022 471 277 236
Foreign exchange reserve
Retained earnings
Total
£000 £000 £000
Balance at 1 May 2020 27 2,369 3,300
Issue of share capital - - 80
Dividends paid - (5,910) (5,910)
Transactions with owners - (5,910) (5,910)
Profit for the year - 11,494 11,494
Other comprehensive income
Exchange differences arising on translating
foreign operations - - -
Total comprehensive income - 11,494 11,494
Balance at 30 April 2021 27 7,953 8,964
Dividends paid - (5,177) (5,177)
Transactions with owners - (5,177) (5,177)
Profit for the year - 4,264 4,264
Other comprehensive income
Exchange differences arising on translating
foreign operations 8 1 9
Total comprehensive income 8 4,265 4,272
Balance at 30 April 2022 35 7,041 8,060
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 2022
Capital redemption reserve
Called up Share premium
share capital
£000 £000 £000
Balance at 1 May 2020 469 199 236
Issue of share capital 2 78 -
Dividends paid - - -
Transactions with owners - - -
Profit for the year - - -
Total comprehensive income - - -
Balance at 30 April 2021 471 277 236
Dividends paid - - -
Transactions with owners - - -
Profit for the year - - -
Total comprehensive income - - -
Balance at 30 April 2022 471 277 236
Retained
earnings Total
£000 £000
Balance at 1 May 2020 2,390 3,294
Issue of share capital - 80
Dividends paid (5,910) (5,910)
Transactions with owners (5,910) (5,910)
Profit for the year 11,495 11,495
Total comprehensive income 11,495 11,495
Balance at 30 April 2021 7,975 8,959
Dividends paid (5,177) (5,177)
Transactions with owners (5,177) (5,177)
Profit for the year 4,270 4,270
Foreign exchange movement 8 8
Total comprehensive income 4,278 4,278
Balance at 30 April 2022 7,076 8,060
The notes form part of this Preliminary Announcement
BEST OF THE BEST PLC
Consolidated Statement of Cash Flows
For The Year Ended 30 April 2022
Notes 2022 2021
£000 £000
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations 5,904 14,270
Tax paid (1,707) (1,686)
Net cash from operating activities 4,197 12,584
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of intangible assets - (84)
Purchase of property, plant and equipment (18) (67)
Interest received 2 1
Net cash from investing activities (16) (150)
CASH FLOWS FROM FINANCING ACTIVITIES
Share issue - 80
Equity dividends paid (5,177) (5,910)
Net cash from financing activities (5,177) (5,830)
(Decrease)/Increase in cash and cash equivalents (996) 6,604
Cash and cash equivalents at beginning of year 11,814 5,210
Cash and cash equivalents at end of year 17 10,818 11,814
RECONCILIATION OF PROFIT BEFORE INCOME TAX TO CASH GENERATED FROM OPERATIONS
2022 2021
£000 £000
Profit before income tax 5,141 14,063
Depreciation charges 46 50
Amortisation charges 53 5
Exchange differences 8 -
Finance income (2) (1)
5,246 14,117
Decrease in trade and other receivables 86 105
Increase in trade and other payables 572 48
Cash generated from operations 5,904 14,270
The notes form part of this Preliminary Announcement
BEST OF THE BEST PLC
Company Statement of Cash Flows
For The Year Ended 30 April 2022
Notes 2022 2021
£000 £000
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations 5,904 14,270
Tax paid (1,707) (1,686)
Net cash from operating activities 4,197 12,584
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of intangible assets - (84)
Purchase of property, plant and equipment (18) (67)
Interest received 2 1
Net cash from investing activities (16) (150)
CASH FLOWS FROM FINANCING ACTIVITIES
Share issue - 80
Equity dividends paid (5,177) (5,910)
Net cash from financing activities (5,177) (5,830)
(Decrease)/Increase in cash and cash equivalents (996) 6,604
Cash and cash equivalents at beginning of year 11,814 5,210
Cash and cash equivalents at end of year 17 10,818 11,814
RECONCILIATION OF PROFIT BEFORE INCOME TAX TO CASH GENERATED FROM OPERATIONS
2022 2021
£000 £000
Profit before income tax 5,145 14,063
Depreciation charges 46 50
Amortisation charges 53 5
Exchange differences 8 -
Finance income (2) (1)
5,250 14,117
Decrease in trade and other receivables 86 105
Increase in trade and other payables 568 48
Cash generated from operations 5,904 14,270
The notes form part of this Preliminary Announcement
BEST OF THE BEST PLC
Notes to the Preliminary Announcement
For The Year Ended 30 April 2022
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 in conformity with the
requirements 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 thousand Pounds.
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, AMENDMENTS AND INTERPRETATIONS
At the date of authorisation of these financial statements, the Company has
not early adopted the following amendments to Standards and Interpretations
that have been issued but are not yet effective:
Standard or Interpretation Effective for annual periods commencing on or after
Narrow scope amendments to IFRS 3, IAS 16 and IAS 37 1 January 2022
Annual improvements to IFRS Standards 2018-2020 1 January 2022
Amendments to IAS 1: Classification of Liabilities as Current or Non-Current 1 January 2023
Amendments to IAS 1 and IFRS Practice Statement 2: Disclosure of Accounting 1 January 2023
Policies
1 January 2023
Amendments to IAS 8: Definition of Accounting Estimates
1 January 2023
Amendments to IAS 12: Deferred Tax Related to Assets and Liabilities arising
from a Single Transaction.
As yet, none of these have been endorsed for use in the UK and will not be
adopted until such time as endorsement is confirmed. The Directors do not
expect any material impact as a result of adopting the standards and
amendments listed above in the financial year, they become effective.
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For The Year Ended 30 April 2022
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 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.
2.6 RESEARCH AND DEVELOPMENT EXPENDITURE
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.
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For The Year Ended 30 April 2022
2. PRINCIPAL ACCOUNTING POLICIES (continued)
2.7 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.
2.8 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.
2.9 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.
2.10 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.
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For The Year Ended 30 April 2022
2. PRINCIPAL ACCOUNTING POLICIES (continued)
2.11 IMPAIRMENT
The carrying amounts of the Company's and the 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.
2.12 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.
2.13 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.
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For The Year Ended 30 April 2022
2. PRINCIPAL ACCOUNTING POLICIES (continued)
2.14 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.
2.15 INVESTMENTS
Investments in subsidiaries and unlisted investments are recorded at cost less
any provision for permanent diminution in value.
2.16 LEASES
The cost of leases of low value items and those with a term of less than one
year at inception are recognised as incurred.
2.17 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.
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For The Year Ended 30 April 2022
2. PRINCIPAL ACCOUNTING POLICIES (continued)
2.18 FINANCIAL INSTRUMENTS
Financial assets and liabilities are recognised in the Company's and Group's
statement of financial position when the Company and Group becomes 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.
2.19 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
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For The Year Ended 30 April 2022
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 £31,422,000 (2021: £41,499,000) whilst
sales from non-UK activities totalled £3,260,000 (2021: £4,182,000).
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For The Year Ended 30 April 2022
6. EMPLOYEES AND DIRECTORS
Group Company
2022 2021 2022 2021
£000 £000 £000 £000
Wages and salaries 2,267 1,941 2,267 1,941
Social security costs 262 241 262 241
Other pension costs 22 16 22 16
2,551 2,198 2,551 2,198
The average monthly number of employees during the year, including the
Directors, was as follows:
Group Company
2022 2021 2022 2021
Number Number Number Number
Sales 9 9 9 9
Administration 9 10 9 10
Management 4 2 4 2
22 21 22 21
2022 2021
£000 £000
Directors' remuneration 819 613
The number of Directors to whom retirement benefits were accruing was as
follows:
2022 2021
Number Number
Money purchase schemes 3 3
The Directors consider themselves to be the only key management personnel.
As such, a separate analysis of remuneration paid to key management personnel
has not been presented.
Information regarding the highest paid Director is as follows:
2022 2021
£000 £000
Emoluments 338 277
7. FINANCE INCOME
2022 2021
£000 £000
Finance income:
Deposit account interest 2 1
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For The Year Ended 30 April 2022
8. PROFIT BEFORE INCOME TAX
The profit before income tax is stated after charging/(crediting):
2022 2021
£000 £000
Depreciation and impairment of property, plant and equipment 46 50
Amortisation of intangible assets 53 5
Foreign exchange losses 8 1
Auditor's remuneration
Audit fees 40 36
Taxation services 3 3
Other 10 18
9. INCOME TAX
Analysis of tax expense
2022 2021
£000 £000
Current tax:
Current year charge 865 2,552
Total current tax 865 2,552
Deferred tax
Origination and reversal of temporary timing differences 12 17
Total deferred tax 12 17
Total tax charge for the year 877 2,569
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:
2022 2021
£ £
Profit on ordinary activities before income tax 5,141 14,063
Profit on ordinary activities multiplied by the standard rate of corporation
tax in the UK of 19% (2021: 19%) 977 2,672
Effects of:
Other timing differences 24 (1)
Research and development enhanced deduction (124) (102)
Tax expense 877 2,569
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For The Year Ended 30 April 2022
10. 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 £4,270,000 (2021:
£11,494,000).
11. 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.
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.
2022 2021
Profit for the year and basic and diluted earnings attributable to the 11,494
owners of the parent - £000 4,264
Weighted average number of ordinary shares - number 9,412,901 9,381,253
Basic earnings per share - pence 45.30p 122.52p
Adjusted weighted average number of ordinary shares - number 9,532,901 9,435,186
Diluted earnings per share - pence 44.37p 121.82p
12. DIVIDENDS
A Special Dividend of 50.0 pence per ordinary share was paid on 2 July 2021 to
shareholders on the register at the close of business on 1 July 2021.
A final dividend of 5.0 pence per ordinary share for the full year ending 30
April 2021 was paid on 01 October 2021 to shareholders on the register at 17
September 2021.
13. INTANGIBLE ASSETS - GROUP AND COMPANY
Development costs
£000
COST
At 1 May 2021 475
At 30 April 2022 475
AMORTISATION
At 1 May 2021 315
Charge for year 53
At 30 April 2022 368
NET BOOK VALUE
2022 107
2021 160
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For The Year Ended 30 April 2022
13. INTANGIBLE ASSETS - GROUP AND COMPANY (continued)
Development costs
£000
COST
At 1 May 2020 391
Additions 84
At 30 April 2021 475
AMORTISATION
At 1 May 2020 310
Charge for year 5
At 30 April 2021 315
NET BOOK VALUE
2021 160
2020 81
14. PROPERTY, PLANT AND EQUIPMENT - GROUP AND COMPANY
Long leasehold Improvements to property Display
equipment
£000 £000 £000
COST
At 1 May 2021 954 55 103
At 30 April 2022 954 55 103
DEPRECIATION AND IMPAIRMENT
At 1 May 2021 18 5 77
Charge for the year 4 - -
At 30 April 2022 22 5 77
NET BOOK VALUE
2022 932 50 26
2021 936 50 26
Motor vehicles Computer equipment
Total
£000 £000 £000
COST
At 1 May 2021 155 184 1,451
Additions - 18 18
At 30 April 2022 155 202 1,469
DEPRECIATION AND IMPAIRMENT
At 1 May 2021 92 156 348
Charge for the year 16 26 46
At 30 April 2022 108 182 394
NET BOOK VALUE
2022 47 20 1,075
2021 63 28 1,103
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For The Year Ended 30 April 2022
14. PROPERTY, PLANT AND EQUIPMENT - GROUP AND COMPANY (continued)
Long leasehold Improvements to property Display
equipment
£000 £000 £000
COST
At 1 May 2020 954 26 103
Additions - 29 -
At 30 April 2021 954 55 103
DEPRECIATION AND IMPAIRMENT
At 1 May 2020 14 4 77
Charge for the year 4 1 -
At 30 April 2021 18 5 77
NET BOOK VALUE
2021 936 50 26
2020 940 22 26
Motor vehicles Computer equipment
Total
£000 £000 £000
COST
At 1 May 2020 155 147 1,385
Additions - 37 66
Disposals 155 184 1,451
At 30 April 2021
DEPRECIATION AND IMPAIRMENT
At 1 May 2020 71 133 299
Charge for the year 21 24 50
At 30 April 2021 92 156 348
NET BOOK VALUE
2021 63 28 1,103
2020 84 14 1,086
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For The Year Ended 30 April 2022
15. INVESTMENTS
Group
Unlisted investments
£000
COST
At 1 May 2021 and 30 April 2022 70
IMPAIRMENT
At 1 May 2021 and 30 April 2022 70
NET BOOK VALUE
At 1 May 2021 and 30 April 2022 -
Unlisted investments relate to the cost of acquiring options in another
company.
Company
Shares in group undertakings
Unlisted investments
Total
£000 £000 £000
COST
At 1 May 2021 and 30 April 2022 - 70 70
IMPAIRMENT
At 1 May 2021 and 30 April 2022 - 70 70
NET BOOK VALUE
At 1 May 2021 and 30 April 2022 - - -
Shares in Group undertakings comprise of the following subsidiary company:
Name of company Nature of business % holding Country of incorporation
BOTB Ireland Limited Competition operator 100 Republic of Ireland
BOTB Ireland Limited registered office is Suite 3 One Earlsfort Centre, Lower
Hatch Street, Dublin 2, Ireland
16. TRADE AND OTHER RECEIVABLES - GROUP AND COMPANY
Group Company
2022 2021 2022 2021
£000 £000 £000 £000
Trade receivables 13 3 13 3
Other receivables 46 37 46 37
Prepayments and accrued income 125 231 125 231
184 271 184 271
The fair value of trade and other receivables approximates to their carrying
values.
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For The Year Ended 30 April 2022
17. CASH AND CASH EQUIVALENTS - GROUP AND COMPANY
Group Company
2022 2021 2022 2021
£000 £000 £000 £000
Bank accounts 10,817 11,812 10,817 11,812
Cash in hand 1 2 1 2
10,818 11,814 10,818 11,814
18. CALLED UP SHARE CAPITAL - COMPANY
Allotted, issued and fully paid 2022 2021 2022 2021
Ordinary shares of 5 pence each Number Number £000 £000
At the start of the year 9,412,901 9,377,253 471 469
Shares allotted during the year - 35,648 - 2
At the end of the year 9,412,901 9,412,901 471 471
19. TRADE AND OTHER PAYABLES - GROUP AND COMPANY
Group Company
2022 2021 2022 2021
£000 £000 £000 £000
Trade creditors 309 286 309 286
Amounts owed to Group undertakings - - - 5
Social security and other taxes 978 638 978 638
Other creditors 2,456 1,709 2,456 1,709
Contract liability balances 353 416 353 416
Pension creditor 4 4 4 4
4,100 3,053 4,100 3,058
20. DEFERRED TAX - GROUP AND COMPANY
Group Company
2022 2021 2022 2021
£000 £000 £000 £000
Asset/(Liability) at 1 May (14) 3 (14) 3
Movement in the year (10) (17) (10) (17)
Liability at 30 April (24) (14) (24) (14)
Deferred tax liabilities and assets have been recognised in respect of
accelerated capital allowances giving rise to deferred tax liabilities and
assets where the Directors believe that it is probable that these liabilities
will fall due and assets will be recovered.
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For The Year Ended 30 April 2022
21. SHARE BASED PAYMENT - GROUP AND COMPANY
Details of the share options outstanding during the year are as follows:
Outstanding at 1 May 2021 Outstanding at 30 April 2022
Grant date Granted Exercised Forfeited Expiry date Exercise price
19-12-2017 9,352 - - 9,352 19-12-2027 2.25
28-02-2020 85,000 - - 85,000 28-02-2030 3.85
19-07-2020 10,000 - - 10,000 19-07-2030 16.00
19-09-2020 5,000 - - 5,000 19-09-2030 18.00
23-11-2022 - 84,000 - - 84,000 23-11-2032 7.10
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:
2022 2022 2021 2021
Number WAEP Number WAEP
Outstanding at the beginning of year 109,352 547.00 130,000 330.00
Granted during the year 84,000 710.00 15,000 1666.67
Exercised during the year - - (30,648) 225.00
Lapsed during the year - - (5,000) 225.00
Outstanding at the end of the year 193,352 617,00 109,352 547,00
Exercisable at the end of the year 9,352 225.00 9,352 225.00
The weighted average remaining contractual life of share options outstanding
as at 30 April 2022 was 8 years and 4 months (2021: 8 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 (2021: £Nil).
22. LEASES - GROUP AND COMPANY
The amounts recognised in the Consolidated Statement of Comprehensive Income
was as follows:
Group Company
2022 2021 2022 2021
£000 £000 £000 £000
Expenses related to short term leases - 10 - 10
During the prior year the retail site lease was exited. This was treated as a
short-term lease and expensed
BEST OF THE BEST PLC
Notes to the Preliminary Announcement (continued)
For The Year Ended 30 April 2022
23. LEASES - GROUP AND COMPANY (continued)
The amount recognised in the Consolidated and Company Statement of Cash Flows
was as follows:
Group Company
2022 2021 2022 2021
£000 £000 £000 £000
Cash flows from operating activities - 10 - 10
24. 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. The Group's financial assets
and liabilities are all measured at amortised cost and so no fair value
disclosures are required.
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.
2022 2021
£000 £000
Financial assets classified as loans and receivables - carrying amounts:
Trade receivables 13 3
Other receivables 171 37
Cash and cash equivalents 10,818 11,415
11,002 11,455
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:
2022 2021
£000 £000
Financial liabilities- carrying amounts Up to 1 year Up to 1 year
Trade and other payables 3,747 2,636
3,747 2,636
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