REG - Bidstack Group PLC - Interim Results - six months ended 30 June 2022
08/08/2022 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220808:nRSH1716Va&default-theme=true
RNS Number : 1716V Bidstack Group PLC 08 August 2022
30 Jun 2021
Certain information contained within this Announcement is deemed by the
Company to constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014 ("MAR") as applied in the United Kingdom. Upon
publication of this Announcement, this information is now considered to be in
the public domain.
8 August 2022
Bidstack Group Plc
("Bidstack" or the "Company" or the "Group")
Interim Results for the six months ended 30 June 2022
Strong revenue and margin growth, increasingly diversified offering, positive
outlook in line with FY22 market expectations
Bidstack Group Plc (AIM: BIDS), the in-game brand activation platform, is
pleased to announce its unaudited results for the six months ended 30 June
2022.
Financial Update
· Revenue of £2,046k (H1 2021: £820k)
· Gross margin improvement to 39.9% (H1 2021: 34.5%)
· Period end cash balance £3,672k (30 June 2021: £695k)
Post Period End Highlights
· Received non-trading cash receipt of £1.3m in July relating to a
research and development tax credit for the year ended 31 December 2021;
· Announced first enterprise software deal with a leading
Asia-Pacific mobile marketing technology company for a term of three-years
which diversifies revenue;
· Expansion of the global network of media partners with UAE based
MMP World Wide who will license Bidstack's technology as a buyer;
· Roll-out of open-market place (OMP) in-game advertising solutions
to accelerate brand spend.
Operational Highlights
· Appointment of David Reeves to the Board as Chairman Designate to
succeed Donald Stewart on 1 September 2022;
· PubGuard, Bidstack's ad-quality platform, secured a minimum
two-year licence agreement with Azerion providing exclusive representation
in reselling PubGuard's brand safety technology whilst also utilising the
software across its group of companies;
· Inventory of games now 110 titles (H1 2021: 30) with over 100m
monthly active users available to Bidstack's network of global media partners;
and
· New ad-format "rewarded video" launched during H1 2022 growing
the breadth of monetisation solutions available to developers and publishers
alongside "in-game" and "in-menu".
Outlook
· Revenue from the Azerion media sales partnership is anticipated
to accelerate into H2 2022 in line with contractual commitments;
· New products scheduled to be launched in H2 2022 intended to
enable Bidstack's publishers and developers to maximise monetisation alongside
the addition of new measurement tools and enhanced platform management
including data and reporting;
· Interactive Advertising Bureau (IAB) and Media Rating Council
(MRC) Measurement Guidelines now in public consultation to establish robust
standards. These standards are expected to increase the confidence of media
buyers to purchase in-game advertising through open marketplace, which is
expected to be a significant catalyst for frictionless growth; and
· Robust pipeline for further enterprise software sales as Bidstack
diversifies its business towards new opportunities in technology licensing to
publishers, developers, platforms and rights holders beyond FY22.
James Draper, CEO of Bidstack said:
"As I mentioned in our trading update on 6 July 2022, the first six months of
FY22 has seen the Company put in place further foundations for longer term
growth, as our Group revenues begin to accelerate.
"Our wider product offering and suite of tools, organic growth and the
commencement of our commercial relationship with Azerion has created a 2.5x
increase in first half revenue year-on-year to over £2m. Given our full
year revenues for 2021 of £2.6m, this represents a significant acceleration
of turnover. In addition, our gross margin has also trended up
year-on-year.
"Our two-year agreement with Azerion began in March and, after an initial
integration and on-boarding phase, is now progressing in line with
management's expectations. As previously mentioned, Azerion is giving
Bidstack's media segment and gaming advertising network a greatly increased
representation across markets new to the Group.
"I am also pleased that our relationship with Azerion has deepened with their
confirmation as the exclusive reseller of our PubGuard product over the next
two years. This is a great commercial start for our technology division.
"As we announced on 11 July, our technology division has signed a three year
commercial agreement with a leading Asia-Pacific mobile marketing technology
company which will white-label our supply side platform to create their own
in-game advertising business. This is expected to create a passive, recurring
revenue stream for the Group going forward.
"Bidstack Group is proud to be a pioneer with our industry bodies; the IAB and
MRC. They are now releasing standardisation guidelines for campaign
measurement. This is an important development, as a universally approved
standard for measuring campaign success will enable media planners to push
more spend into in-game advertising.
"In H2 22 we will continue exploring enterprise software sales. Our vision has
always been to create a platform that generates recurring and automated
revenues through our suite of tools, designed to help our gaming publishers'
customers monetise brand activations. We have many exciting new products,
adding to our "always-on revenue" suite of tools for publishers that are
expected to be rolled out in Q3 22.
"We are all very aware of the uncertainty caused by the challenging global
economic climate. However, we remain confident that the video game sector will
remain strong and that demand for monetisation through advertising-spend will
continue to increase, from game developers and publishers.
"I believe we remain well placed to benefit as our market continues to mature
and I look forward to providing further updates."
Chairman's Statement
H1 2022 Trading
Bidstack's first six months of the year have been positive. The Group's
financial indicators, such as year-on-year revenue, gross margin and cash are
extremely encouraging. On the 1 March 2022, the $30m two-year minimum
revenue guarantee with Azerion commenced. The onboarding of sales teams
across key markets such as the UK, Germany, France, Spain, Netherlands, Italy,
Nordics, Portugal and Belgium has commenced in-line with expectations and will
accelerate into H2 2022.
Bidstack has grown its publisher and developer network to over 110 titles with
access to over 100m monthly active users as we continue building our portfolio
of titles providing significant cross-selling opportunities across our breadth
of ad-formats, which now includes rewarded video in addition to in-game and
in-menu. The combination of brand awareness and performance ad-formats
provides the publishers and developers with a holistic monetisation solution
to generate sustainable revenue.
During the first half, Bidstack has also started to see success with its
enterprise sales efforts with the licensing of our PubGuard technology to
Azerion over two years. The Directors believe this should be a positive
mix-driver for gross margin as these are technology-only contracts. The
commercial pipeline for further technology deals is strong across a
diversified set of customers and geographical footprint. The Directors
believe that these transactions will contribute meaningfully to revenues in
FY23.
Board Appointments
On the 17 June 2022, we announced the appointment of David Reeves to
Bidstack's Board as Chairman Designate. To ensure an orderly handover before
David assumes the role of Chairman on 1 September 2022, I will remain Chairman
while David serves on the Board as a Non-Executive Director. Following this,
I will move to a Non-Executive Director role and continue to serve on the
Audit and Remuneration Committees.
David has over 30 years' global experience in senior management roles within
multinational companies across the video games industry. He launched Sony
PlayStation in Germany, Switzerland & Austria in 1995 and in 1999, he was
appointed Executive Vice President of Sony Computer Entertainment (Europe) and
President and CEO EMEA in 2003. In 2010, David was appointed as COO of
Capcom (Europe). David has his own consulting Company DRC Consulting Ltd, is
Co-Founder of E Fundamentals, a SaaS company providing e-commerce analytics
services and is Chairman of Comcarde Ltd, an Edinburgh based fintech company.
David served as Senior Non-Executive Director and Chairman of the Remuneration
Committee for AIM-quoted Keywords Studios. Keywords Studios is an
international technical services provider to the global video games industry,
established in 1998. It provides integrated art creation, marketing
services, game development, testing, localization audio and player support
services across more than 50 languages and 16 games platforms to a blue-chip
client base of over 950 clients across the globe. Following the completion
of nine years' service as a Non-Executive Director he retired from this
position on 20 May 2022.
Outlook & Future Prospects
The second half of the year has commenced strongly with the announcement of
Bidstack's first white-label contract with a leading Asia-Pacific based mobile
marketing technology company for a term of three years. The company has
contracted to utilise Bidstack Technologies' supply side platform ("SSP") to
create their own in-game advertising business adding both advertisers and
publishers and developers, which is expected to create a passive, recurring
revenue stream for the Group going forward. This also provides Bidstack with
direct exposure to the Asia-Pacific market which includes half of video gamers
worldwide.
The Directors' believe that the roll-out of further Bidstack products will
also help additional revenue generation. These include the launch of our
open-market place (OMP) for in-game advertising which is intended to
accelerate brand spend. This is supported also by the positive developments
with the Interactive Advertising Bureau (IAB) and Media Rating Council (MRC)
Measurement Guidelines which provides further confidence to media buyers.
The Board is pleased with Bidstack's progress in the first half and expects
that revenues for FY22 will be in line with market expectations, primarily
reflecting the increased commitments arising under the Azerion contract for
the second half.
The Board continues to believe that Bidstack is well established, both in
terms of product and revenue generation, as a leading player for in-game brand
activation. Bidstack continues to focus on cash management, gross margins
and operating expenses.
-ENDS-
Contacts
Bidstack Group Plc
James Draper, CEO via Buchanan
SPARK Advisory Partners Limited (Nomad) +44 (0) 203 368 3550
Mark Brady / Neil Baldwin / James Keeshan
Stifel Nicolaus Europe Limited (Broker)
Fred Walsh / Tom Marsh +44 (0) 20 7710 7600
Buchanan Communications Limited
Chris Lane / Stephanie Whitmore / Kim van Beeck +44 (0) 20 7466 5000
bidstack@buchanan.uk.com (mailto:bidstack@buchanan.uk.com)
Consolidated statement of comprehensive income
for the six months ended 30 June 2022
Note
Unaudited Unaudited Audited
6 months ended 6 months ended year
30 Jun 2022 30 Jun 2021 ended
31 Dec 2021
£ £ £
Revenue 2,045,986 820,136 2,623,413
Cost of sales (1,229,225) (537,309) (1,674,190)
Gross profit 816,761 282,827 949,223
Administrative expenses (4,507,501) (3,915,874) (8,681,927)
Exceptional Items - - (222,555)
Total Administrative Expenses (4,507,501) (3,915,874) (8,904,482)
Operating loss (3,690,740) (3,633,047) (7,955,259)
Finance income 96 60 180
Finance costs (1,442) (160) (3,392)
Loss before taxation (3,692,086) (3,633,147) (7,958,471)
Taxation 938,184 744,756 1,661,027
Loss for the period (2,753,902) (2,888,391) (6,297,444)
Other comprehensive income
Total other comprehensive (loss)/income (10,675) - 10,589
Total comprehensive loss for the period (2,764,577) (2,888,391) (6,286,855)
Loss per share - basic and diluted (pence) 3 (0.30) (0.74) (1.21)
The above consolidated statement of profit and loss and other comprehensive
loss for the period relates to continuing operations for the Group.
Consolidated statement of financial position
as at 30 June 2022
Note Unaudited Unaudited Audited
30 Jun 2022 30 Jun 2021 31 Dec 2021
ASSETS £ £ £
Non-current assets
Right of use asset 5,600 649 7,280
Intangible assets 233,162 264,357 248,760
Property, plant and equipment 45,841 41,277 46,519
Total non-current assets 284,603 306,283 302,559
Current assets
Trade and other receivables 4,284,584 1,229,387 2,752,036
Cash and cash equivalents 3,671,976 694,544 7,086,906
Total current assets 7,956,560 1,923,931 9,838,942
Total assets 8,241,163 2,230,214 10,141,501
EQUITY AND LIABILITIES
Equity
Share capital 4 8,950,048 6,234,261 8,950,048
Share premium account 35,375,326 27,984,716 35,375,326
Share-based payment reserve 2,328,400 1,497,826 1,589,965
Merger relief reserve 6,508,673 6,508,673 6,508,673
Reverse acquisition reserve (23,320,632) (23,320,632) (23,320,632)
Warrant reserve 71,480 71,480 71,480
Exchange reserve (86) - 10,589
Accumulated losses (24,630,248) (18,467,293) (21,876,346)
Total equity 5,282,961 509,031 7,309,103
Non - Current liabilities
Lease liability 2,416 675 4,180
Total non -current liabilities 2,416 675 4,180
Current liabilities
Trade and other payables 2,952,597 1,720,508 2,824,920
Lease liability 3,189 - 3,298
Total current liabilities 2,955,786 1,720,508 2,828,218
Total equity and liabilities 8,241,163 2,230,214 10,141,501
The interim financial report was approved by the board of Directors on 8
August 22 and signed on its behalf by:
Donald Stewart
Chairman of Bidstack Group Plc
Consolidated statement of changes in equity
for the six months ended 30 June 2022
Share capital Share premium Share-based payment reserve Merger relief reserve Reverse acquisition reserve Exchange reserve Warrant reserve Accumulated losses
Total
equity
£ £ £ £ £ £ £ £ £
Balance as at 1 January 2022 8,950,048 35,375,326 1,589,965 6,508,673 (23,320,632) 10,589 71,480 (21,876,346) 7,309,103
Comprehensive income for the period
Loss and total comprehensive income for the year - - - - - (10,675) - (2,753,902) (2,764,577)
Total comprehensive expense - - - - - (10,675) - (2,753,902) (2,764,577)
Transactions with owners
Issue of shares - - - - - - - - -
Costs of raising equity - - - - - - - - -
Share-based payments - - 738,435 - - - - - 738,435
Total transaction with owners - - 738,435 - - - - - 738,435
Balance as at 30 June 2022 8,950,048 35,375,326 2,328,400 6,508,673 (23,320,632) (86) 71,480 (24,630,248) 5,282,961
Consolidated statement of changes in equity
for the six months ended 30 June 2021
Share capital Share premium Share-based payment reserve Merger relief reserve Reverse acquisition reserve Exchange reserve Warrant reserve Accumulated losses Total Equity
£ £ £ £ £ £ £ £ £
Balance as at 1 January 2021 6,234,261 27,984,716 1,282,556 6,508,673 (23,320,632) - 71,480 (15,578,902) 3,182,152
Comprehensive income for the period
Loss and total comprehensive income for the year - - - - - - - (2,888,391) (2,888,391)
Total comprehensive expense - - - - - - - (2,888,391) (2,888,391)
Transactions with owners
Issue of shares - - - - - - - - -
Costs of raising equity - - - - - - - - -
Share-based payments - - 215,270 - - - - - 215,270
Total transaction with owners - - 215,270 - - - - - 215,270
Balance as at 30 June 2021 6,234,261 27,984,716 1,497,826 6,508,673 (23,320,632) - 71,480 (18,467,293) 509,031
Consolidated statement of changes in equity
for the year ended 31 December 2021
Share capital Share premium Share-based payment reserve Merger relief reserve Reverse acquisition reserve Exchange reserve Warrant reserve Accumulated losses
Total
equity
£ £ £ £ £ £ £ £ £
Balance as at 1 January 2021 6,234,261 27,984,716 1,282,556 6,508,673 (23,320,632) - 71,480 (15,578,902) 3,182,152
Comprehensive income for the period
Loss and total comprehensive income for the year (6,297,444) (6,297,444)
Total comprehensive expense - - - - - - - (6,297,444) (6,297,444)
Transactions with owners
Issue of shares 2,715,787 8,147,363 - - - - - - 10,863,150
Costs of raising equity - (756,753) - - - - - - (756,753)
Share-based payments - - 307,409 - - - - - 307,409
Total other comprehensive income - - - - - 10,589 - - 10,589
Total transaction with owners 2,715,787 7,390,610 307,409 - - 10,589 - - 10,424,395
Balance as at 31 December 2021 8,950,048 35,375,326 1,589,965 6,508,673 (23,320,632) 10,589 71,480 (21,876,346) 7,309,103
Consolidated statement of cash flows
6 months ended 6 months ended Year ended
30 Jun 2022 30 Jun 2021 31 Dec 2021
£ £ £
Cash flows from operating activities
Loss before taxation (2,753,902) (2,888,391) (7,958,471)
Adjustments for:
Amortisation - Intangibles 15,598 15,598 31,195
Amortisation - Right of use asset 1,680 6,928 10,377
Depreciation 13,140 9,442 24,160
Equity settled share-based payments 738,435 215,270 307,409
Doubtful debts expense - - (2,073)
Interest received (96) (60) (180)
Interest paid 1,442 160 3,392
Exchange differences on translation of foreign operations (10,675) - 10,589
(1,994,378) (2,641,053) (7,573,602)
Changes in working capital
(Increase)/decrease in trade and other receivables (1,532,550) 1,161,913 409,468
Increase/(decrease) in trade and other payables 127,679 (143,231) 961,182
Cash used in operations (3,399,249) (1,622,371) (6,202,952)
Taxation Received - - 892,895
Net cash used in operations (3,399,249) (1,622,371) (5,310,057)
Cash flow from investing activities
Investment in intangible assets - - -
Investment in property, plant and equipment (12,462) (22,331) (42,291)
Net cash flow (used in)/ generated from investing activities (12,462) (22,331) (42,291)
Cash flow from financing activities
Proceeds from issue of share capital - - 10,863,150
Cost of issue - - (756,753)
Principal movement on lease liabilities (1,872) (7,768) (11,045)
Interest received 96 60 180
Interest paid on lease liabilities (1,443) (160) (3,392)
Net cash generated from financing activities (3,219) (7,868) 10,092,140
(Decrease)/Increase in cash and cash equivalents in the period (3,414,930) (1,652,570) 4,739,792
Cash and cash equivalents at beginning of period 7,086,906 2,347,114 2,347,114
Cash and cash equivalents at the end of the period 3,671,976 694,544 7,086,906
for the period ended 30 June 2022
Notes to the consolidated interim financial report
1 Summary of significant accounting policies
Basis of preparation
The Company is a public limited company which is admitted to trading on the
AIM Market of the London Stock Exchange and is incorporated and domiciled in
the UK. The address of the registered office is Plexal Here East, 14 East Bay
Lane, London, United Kingdom, E15 2GW. The registered number of the company is
04466195.
The consolidated interim financial report consolidates those of the Company
and its trading subsidiary, Bidstack Limited (together the "Group"). The
financial information presented in this interim report have been prepared
using accounting policies that are expected to be applied in the preparation
of the financial statements for the year ending 31 December 2022.
These policies are in accordance with International Financial Reporting
Standards (IFRSs) and International Financial Reporting Interpretation
Committee (IFRIC) interpretations as endorsed by the European Union
("IFRS-EU"), and those parts of the Companies Act applicable to companies
reporting under IFRS.
The interim results have been prepared on a going concern basis which assumes
that the Group will be able to continue trading for the foreseeable future.
Although an operating loss has been reported for the reporting period and an
operating loss is expected to be incurred in the 12 months subsequent to the
date of this report, the Directors believe, having considered all available
information, including the cash resources currently available to the Group and
the Company's proven ability to raise further equity funds from its supportive
shareholder base, that the Group will have sufficient funds to meet its
expected committed and contractual expenditure for the foreseeable future.
Thus, the Directors continue to adopt the going concern basis of accounting in
preparing the interim financial report for the period ended 30 June 2022.
2 Summary of significant accounting policies
The accounting policies applied by the Group in this consolidated interim
financial report are the same as those applied by the Group in its
consolidated financial statements as at and for the year ended 31 December
2021.
3 Loss per share
Basic and diluted loss per share
The calculation of basic and diluted loss per share is based upon the loss of
£2,764,577 (2021: loss of £2,888,391) and the weighted average number of
ordinary shares in issue for the year of 931,531,573 (2021: 388,374,057).
The loss incurred by the Group means that the effect of any outstanding
warrants and options would be considered anti-dilutive and is ignored for the
purposes of the loss per share calculation.
4 Share capital and reserves
Allotted, called up and fully paid Ordinary 0.5p shares Share capital
No. £
At 1 January 2021 388,374,057 6,234,261
Exercised warrants - -
Exercised options - -
Issue of shares 543,157,516 2,715,787
Issue of consideration shares - -
As at 31 December 2021 931,531,573 8,950,048
Issue of shares - -
As at 30 June 2022 931,531,573 8,950,048
All ordinary shares are equally eligible to receive dividends and the
repayment of capital and represent equal votes at meetings of shareholders.
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 (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR FDLLBLVLXBBXRecent news on Bidstack
See all newsREG - AIM Bidstack Group PLC - Cancellation - Bidstack Group PLC
AnnouncementREG - FTSE Russell - Bidstack Group
AnnouncementREG - Bidstack Group PLC - Appointment of Administrators & Nomad Resignation
AnnouncementREG - AIM Bidstack Group PLC - Suspension - Bidstack Group PLC
AnnouncementREG - Bidstack Group PLC - Intention to Appoint Administrators & Suspension
Announcement