REG - Gaming Realms PLC - Interim Results
12/09/2023 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:20230912:nRSL0682Ma&default-theme=true
RNS Number : 0682M Gaming Realms PLC 12 September 2023
12 September 2023
Gaming Realms plc
(the "Company" or the "Group")
Interim Results
Content licensing revenue grew 37% to £8.8m after 12 consecutive half years
of growth
37% increase in Adjusted EBITDA(1) to £4.8m
Gaming Realms plc (AIM: GMR), the developer and licensor of mobile focused
gaming content, is pleased to announce its interim results for the six months
to 30 June 2023 (the "Period" or "H1'23").
Financial highlights:
H1'23 H1'22 Change
£m £m %
Revenue (Content licensing) 8.8 6.4 +37%
Revenue (Brand licensing) 1.0 0.3 +222%
Revenue (Social) 1.8 1.8 -2%
Total revenue 11.5 8.5 +36%
Adjusted EBITDA 4.8 3.5 +37%
Profit before tax 2.4 1.4 +74%
· Total revenue grew 36% to £11.5m in H1'23 (H1'22: £8.5m)
· Group Adjusted EBITDA grew 37% to £4.8m (H1'22: £3.5m),
representing a 41% Adjusted EBITDA margin (H1'22: 41%)
· Total licensing revenues grew 46% to £9.8m (H1'22: £6.7m)
• Content licensing revenue increased 37% to £8.8m (H1'22: £6.4m) with
an EBITDA margin of 54% (H1'22: 52%)
• Brand licensing revenue increased 222% to £1.0m (H1'22: £0.3m)
· Profit before tax increased 74% to £2.4m (H1'22: £1.4m)
· Net cash at period end up 54% to £4.5m (Dec'22: £2.9m)
demonstrating the cash generative nature of the Group's business model
Operational highlights:
· Launched with 25 new partners globally, including Bet365 in the
UK, Betway, OLG (Provincial Lottery) and LeoVegas in Ontario and Pokerstars in
New Jersey
· Submitted iGaming Supplier Licenses in British Columbia and South
Africa and the Company was granted its Swedish Gaming Authority License
· Secured brand licensing agreements for Tetris and TAITO's SPACE
INVADERS, both expected to launch in the second half of 2023
· Gained ISO 27001 certification, an internationally recognised
standard for managing information security
· Released 5 new games into the market, including Slingo Cleopatra
and Slingo Money Train. The Group now has 70 games in its portfolio (Dec'22:
65 games, Jun'22: 61 games)
Post period-end:
· Licensing revenue increased 20% in the two months post period-end
compared to the same period in 2022
· Launched Slingo Originals content with Betclic in the Portuguese
regulated market
· Released Slingo Cosmic Clusters
(1) EBITDA is profit before interest, tax, depreciation and amortisation
expenses and is a non-GAAP measure. The Group uses EBITDA to comment on its
financial performance. The Group uses EBITDA before share option and related
charges (Adjusted EBITDA) to comment on its financial performance above.
Outlook for FY23:
Gaming Realms has continued its growth through the first half of 2023, as the
Company continues to execute on its core strategy of developing and licensing
games globally to market-leading brands and operators delivering high margin
revenues.
This Period has seen a record performance for the Group in terms of revenue
and EBITDA, driven by our core content licensing business which has had 12
consecutive half years of growth.
This strong momentum is expected to continue into the second half of the year,
given the Group is still entering new markets and releasing new games, having
recently launched with Betclic in Portugal and having applied for a licence to
supply its games to the South African market and to the Lottery in British
Columbia.
The European market continues to be the largest contributor to content
licensing revenues, having grown 38% in the Period when compared to the same
period in 2022, launching 5 new Slingo games and adding 9 new partners.
Our revenues from North American content licensing have increased 37%, with
the region accounting for 45% of content licensing revenue. New Jersey
continues to be our leading market, but Pennsylvania and Michigan are growing
strongly as we launch more games with new partners. As at 30 June 2023, we
were live with 57 games in New Jersey across 20 partners, 18 games across 12
partners in Pennsylvania and 28 games across 12 partners in Michigan.
In total we have launched with 25 partners in H1 2023. This growth is
supported by the launch of premium games, including Slingo Cleopatra and
Slingo Money Train. With the upcoming launch of Slingo SPACE INVADERS and
Tetris Slingo, we are confident of further growth for the remainder of the
year and the Board remains comfortable with market expectations around FY23
financial performance.
Commenting on the first half performance, Mark Segal, Chief Executive Officer,
said:
"We have delivered a strong first half performance as we have grown our
international licensing business with the launch of our innovative Slingo
content to a growing number of partners and players.
"The Group has a strong pipeline of new business and the outlook for the Group
remains positive. We are seeing growth in our existing partnerships coupled
with new operator, product and market launches, which gives us great
confidence in terms of the longer term prospects for the business."
An analyst briefing will be held virtually at 11.00am today. To attend, please
contact Yellow Jersey at gamingrealms@yellowjerseypr.com
(mailto:gamingrealms@yellowjerseypr.com) .
Enquiries
Gaming Realms plc 0845 123 3773
Michael Buckley, Executive Chairman
Mark Segal, CEO
Geoff Green, CFO
Peel Hunt LLP - NOMAD and Joint Broker 020 7418 8900
George Sellar
Andrew Clark
Lalit Bose
Investec Bank plc - Joint Broker 020 7597 5970
Bruce Garrow
Alex Wright
Ben Farrow
Yellow Jersey 07747 788 221
Charles Goodwin
Annabelle Wills
About Gaming Realms
Gaming Realms creates and licenses innovative games for mobile, with
operations in the UK, U.S. and Canada. Through its unique IP and brands,
Gaming Realms is bringing together media, entertainment and gaming assets in
new game formats. The Gaming Realms management team includes accomplished
entrepreneurs and experienced executives from a wide range of leading gaming
and media companies.
Business review
The Group delivered overall revenue growth of 36% to £11.5m (H1'22: £8.5m),
driven by the Group's core content licensing business.
The Group generated EBITDA of £4.5m (H1'22: £3.3m) and £4.8m before share
option and related charges (H1'22: £3.5m).
The £1.2m increase in EBITDA generated compared with the prior period has
seen the Group record a profit before tax of £2.4m (H1'22: £1.4m), an
increase of £1.0m on the prior period.
Licensing
Licensing segment revenues increased 46% to £9.8m (H1'22: £6.7m), which is
broken down as:
· Content licensing revenue growth of 37% to £8.8m (H1'22:
£6.4m); and
· Brand licensing revenue increased 222% to £1.0m (H1'22: £0.3m).
The segment delivered £5.7m EBITDA in the period, a 57% overall uplift over
the £3.6m in H1'22.
Content licensing
The core focus of the Group continues to be growing the content licensing
business by way of expanding into new regulated territories, growing our
unique Slingo games portfolio and developing deep relationships with new and
existing partners to maximise value and engagement.
During the period under review, the Group went live with a further 25 partners
in existing markets within Europe and North America. The Company was also
granted its Swedish Gaming Authority license, allowing the Company to continue
to supply its games to the Swedish market, and submitted license applications
in both British Columbia, Canada and South Africa.
An additional 5 new Slingo games were released to the market during the
period, bringing the Group's games portfolio to 70 games at the period end
(H1'22: 61 games).
Slingo is a unique genre of game in the market, which is driving engagement
with partners. It continues to prove highly popular with both partners and
players.
This resulted in a 37% increase in content licensing revenues to £8.8m
(H1'22: £6.4m). Total segmental expenses (excluding share option and related
charges) increased 34% to £4.0m (H1'22: £3.0m), further demonstrating the
operational leverage of the content licensing business.
After the period end, the Group began distributing its content in the
Portuguese regulated market.
Brand licensing
Revenues from the Group's brand licensing activities, which are non-core,
increased to £1.0m (H1'22: £0.3m). This is a result of two brand deals
completed in the period, including a deal with Entain to launch Slingo Bingo
which went live in May 2023.
Social
Revenues in the Group's social publishing business reduced 2% to £1.75m in
the period (H1'22: £1.79m).
Marketing expenses of £0.3m (H1'22: £0.0m) have been invested during the
period aimed at increasing player numbers, activity and revenues over a
12-month period. Management do not expect this level of marketing investment
to be repeated in the second half of the year, as we expect revenues to be
maintained. Social remains a business where we can further monetise our
Slingo portfolio.
Excluding marketing expenses, segmental expenses increased 12% to £1.2m
(H1'22: £1.1m) as a result of further investment in the development and
operational team to support the Group's growth plan.
Cashflow and balance sheet
The Group's cash balance at 30 June 2023 was £4.5m, an increase of £1.6m
from the £2.9m reported at 31 December 2022.
The current period increase in cash was largely driven by the £3.9m cash
inflow from operations, offset by £2.2m development costs capitalised during
the period and £0.1m acquisition of tangible and intangible assets.
The Group remains debt free following the repayment of the convertible loan
with Gamesys Group in December 2022.
The Board continues to review the optimal use of the cash balance.
The Group's net asset position at the period end was £20.5m (31 December
2022: £17.9m).
Dividend
The Board of Directors are not proposing an interim dividend for the Period as
it continues to execute on its strategy and invest in the growth of the
business.
Consolidated statement of comprehensive income
for the 6 months ended 30 June 2023
6M 6M
30 June 2023 30 June 2022
Unaudited Unaudited *
Note £ £
Revenue 2 11,543,255 8,507,887
Other income 63,147 -
Marketing expenses (437,398) (53,274)
Operating expenses (2,274,375) (1,780,497)
Administrative expenses (4,143,790) (3,194,016)
Share option and related charges 10 (246,056) (162,819)
EBITDA 2 4,504,783 3,317,281
Amortisation of intangible assets 6 (2,011,497) (1,737,493)
Depreciation of property, plant and equipment 5 (135,044) (124,071)
Finance expense 3 (21,845) (117,769)
Finance income 3 15,873 13,038
Profit before tax 2,352,270 1,350,986
Taxation credit 159,578 42,155
Profit for the period 2,511,848 1,393,141
Other comprehensive income
Items that will or may be reclassified to profit or loss:
Exchange (loss) / gain arising on translation of foreign operations (95,724) 193,753
Total other comprehensive income (95,724) 193,753
Total comprehensive income 2,416,124 1,586,894
Profit attributable to:
Owners of the parent 2,511,848 1,393,141
Total comprehensive income attributable to:
Owners of the parent 2,416,124 1,586,894
Earnings per share Pence Pence
Basic 4 0.86 0.48
Diluted 4 0.84 0.47
* Comparative numbers for the period ended 30 June 2022 have been restated.
See Note 1 for further details.
Consolidated statement of financial position
as at 30 June 2023
30 June 31 December
2023
2022
Unaudited Audited
Note £ £
Non-current assets
Intangible assets 6 12,625,820 12,422,852
Property, plant and equipment 5 420,498 535,409
Deferred tax asset 871,255 287,407
Other assets 139,531 138,798
14,057,104 13,384,466
Current assets
Trade and other receivables 7 5,231,496 5,336,330
Cash and cash equivalents 4,490,232 2,922,775
9,721,728 8,259,105
Total assets 23,778,832 21,643,571
Current liabilities
Trade and other payables 8 2,738,282 3,270,319
Lease liabilities 125,848 217,731
2,864,130 3,488,050
Non-current liabilities
Deferred tax liability 238,246 75,592
Lease liabilities 126,752 167,680
364,998 243,272
Total liabilities 3,229,128 3,731,322
Net assets 20,549,704 17,912,249
Equity
Share capital 9 29,288,826 29,200,676
Share premium 87,670,735 87,653,774
Merger reserve (67,673,657) (67,673,657)
Foreign exchange reserve 1,453,977 1,549,701
Retained earnings (30,190,177) (32,818,245)
Total equity 20,549,704 17,912,249
Consolidated statement of cash flows
for the 6 months ended 30 June 2023
30 June 30 June
2023
2022
Unaudited Unaudited
Note £ £
Cash flows from operating activities
Profit for the period 2,511,848 1,393,141
Adjustments for:
Depreciation of property, plant and equipment 5 135,044 124,071
Amortisation of intangible fixed assets 6 2,011,497 1,737,493
Finance income 3 (15,873) (13,038)
Finance expense 3 21,845 117,769
Income tax credit (159,578) (42,155)
Exchange differences (6,653) 5,413
Share based payment expense 10 116,220 253,775
Increase in trade and other receivables 119,974 (1,427,075)
Decrease in trade and other payables (215,605) (145,627)
Decrease in other assets - 11,848
Net cash flows from operating activities before taxation 4,518,719 2,015,615
Net tax paid in the period (578,675) -
Net cash flows from operating activities before taxation 3,940,044 2,015,615
Investing activities
Acquisition of property, plant and equipment 5 (25,336) (99,376)
Acquisition of intangible assets 6 (83,763) (83,143)
Capitalised development costs 6 (2,204,419) (2,088,552)
Net cash used in investing activities (2,313,518) (2,271,071)
Financing activities
IFRS 16 lease payments (136,662) (103,282)
Issue of share capital on exercise of options 9 105,111 13,332
Interest paid (13,866) (99,393)
Net cash used in financing activities (45,417) (189,343)
Net increase / (decrease) in cash and cash equivalents 1,581,109 (444,799)
Cash and cash equivalents at beginning of period 2,922,775 4,412,375
Exchange (loss) / gain on cash and cash equivalents (13,652) 27,806
Cash and cash equivalents at end of period 4,490,232 3,995,382
Consolidated statement of changes in equity
for the 6 months ended 30 June 2023
Share capital Share premium Merger reserve Foreign Exchange Reserve Retained earnings Total to equity holders of parents
£ £ £ £ £ £
1 January 2022 28,970,262 87,370,856 (67,673,657) 1,418,269 (36,977,228) 13,108,502
Profit for the period - - - - 1,393,141 1,393,141
Other comprehensive income - - - 193,753 - 193,753
Total comprehensive income for the period - - - 193,753 1,393,141 1,586,894
Contributions by and distributions to owners
Share-based payment on share options (Note 10) - - - - 253,775 253,775
Exercise of options (Note 9) 13,332 - - - 13,332
Conversion of loan 217,082 282,918 - - 106,000 606,000
30 June 2022 (unaudited) 29,200,676 87,653,774 (67,673,657) 1,612,022 (35,224,312) 15,568,503
1 January 2023 29,200,676 87,653,774 (67,673,657) 1,549,701 (32,818,245) 17,912,249
Profit for the period - - - - 2,511,848 2,511,848
Other comprehensive income - - - (95,724) - (95,724)
Total comprehensive income for the period - - - (95,724) 2,511,848 2,416,124
Contributions by and distributions to owners
Share-based payment on share options (Note 10) - - - - 116,220 116,220
Exercise of options (Note 9) 88,150 16,961 - - - 105,111
30 June 2023 (unaudited) 29,288,826 87,670,735 (67,673,657) 1,453,977 (30,190,177) 20,549,704
Notes forming part of the consolidated financial statements
For the 6 months ended 30 June 2023
1. Accounting policies
General Information
Gaming Realms plc ("the Company") and its subsidiaries (together "the Group").
The Company is admitted to trading on AIM of the London Stock Exchange. It is
incorporated and domiciled in the UK. The address of its registered office is
Two Valentine Place, London, SE1 8QH.
The results for the six months ended 30 June 2023 and 30 June 2022 are
unaudited.
Basis of preparation
The financial information for the year ended 31 December 2022 included in
these financial statements does not constitute the full statutory accounts for
that year. The Annual Report and Financial Statements for 2022 have been filed
with the Registrar of Companies. The Independent Auditors' Report on the
Annual Report and Financial Statement for 2022 was unqualified, did not draw
attention to any matters by way of emphasis, and did not contain a statement
under 498(2) or 498(3) of the Companies Act 2006.
This interim report, which has neither been audited nor reviewed by
independent auditors, was approved by the board of directors on 11 September
2023. The financial information in this interim report has been prepared in
accordance with UK adopted international accounting standards. The accounting
policies applied by the Group in this financial information are the same as
those applied by the Group in its financial statements for the year ended 31
December 2022 and which will form the basis of the 2023 financial statements.
The consolidated financial statements are presented in Sterling.
Restatement of comparatives
The comparative results for the period ended 30 June 2022 have been restated
for the following items:
· Management believes the presentation of hosting costs as an
operating expense rather than an administrative expense more accurately
reflects the function of the expense. Therefore £601,196 of hosting costs
incurred in the comparative period have been reclassified from administrative
expenses to operating expenses. This reclassification has no impact on
reported EBITDA or profit after tax for the comparative period.
· In the financial statements for the year ended 31 December 2022,
the functional currency of a group company was changed, effective 1 January
2022. This change was omitted from the 2022 interim financial statements,
which have been restated to reflect this change from 1 January 2022. The
restatement has reduced the total amortisation charge by £15,079 to
£1,737,493, and reduced the tax credit by £2,564 to £42,155. The overall
impact is no change to the previously reported EBITDA and an increase in the
reported profit after tax by £15,515 for the comparative period.
Going concern
The Group meets its day-to-day working capital requirements from the cash
flows generated by its trading activities and its available cash resources.
The Group prepares cash flow forecasts and re-forecasts at least bi-annually
as part of the business planning process.
The Directors have reviewed forecast cash flows for the period to December
2025, and consider that the Group will have sufficient cash resources
available to meet its liabilities as they fall due.
Accordingly, these financial statements have been prepared on the basis of
accounting principles applicable to a going concern, which assumes that the
Group will realise its assets and discharge its liabilities in the normal
course of business.
EBITDA
EBITDA is a non-GAAP company specific measure defined as profit or loss before
tax adjusted for finance income and expense, depreciation and amortisation.
EBITDA before share option and related charges (Adjusted EBITDA) is
considered to be a key performance measure by the Directors as it serves as an
indicator of financial performance.
2. Segment information
The Board is the Group's chief operating decision-maker. Management has
determined the operating segments based on the information reviewed by the
Board for the purposes of allocating resources and assessing performance.
The Group has two reportable segments.
· Licensing - B2B brand and content licensing to partners in the US
and Europe; and
· Social publishing - provides B2C freemium games to the US.
Revenue
The Group has disaggregated revenue into various categories in the following
table which is intended to:
· Depict how the nature, amount, timing and uncertainty of revenue and
cash flows are affected by economic date; and
· Enable users to understand the relationship with revenue segment
information provided below.
Licensing Social Other Total
publishing
H1 2023 revenue £ £ £ £
Primary geographical markets
UK, including Channel Islands 531,124 - - 531,124
USA 3,978,599 1,754,604 - 5,733,203
Isle of Man 392,765 - - 392,765
Malta 1,736,619 - - 1,736,619
Gibraltar 2,483,391 - - 2,483,391
Rest of the World 666,153 - 666,153
9,788,651 1,754,604 - 11,543,255
Contract counterparties
Direct to consumers (B2C) - 1,754,604 - 1,754,604
B2B 9,788,651 - - 9,788,651
9,788,651 1,754,604 - 11,543,255
Timing of transfer of goods and services
Point in time 9,788,651 1,754,604 - 11,543,255
Over time - - - -
9,788,651 1,754,604 - 11,543,255
2. Segment information (continued)
Licensing Social Other Total
publishing
H1 2022 revenue £ £ £ £
Primary geographical markets
UK, including Channel Islands 411,529 - 11,000 422,529
USA 2,857,929 1,788,722 - 4,646,651
Isle of Man 359,662 - - 359,662
Malta 1,224,280 - - 1,224,280
Gibraltar 1,208,956 - - 1,208,956
Rest of the World 645,809 - - 645,809
6,708,165 1,788,722 11,000 8,507,887
Contract counterparties
Direct to consumers (B2C) - 1,788,722 - 1,788,722
B2B 6,708,165 - 11,000 6,719,165
6,708,165 1,788,722 11,000 8,507,887
Timing of transfer of goods and services
Point in time 6,708,165 1,788,722 11,000 8,507,887
Over time - - - -
6,708,165 1,788,722 11,000 8,507,887
EBITDA
Licensing Social publishing Head Office Total
H1 2023 £ £ £ £
Revenue 9,788,651 1,754,604 - 11,543,255
Other income - 63,147 - 63,147
Marketing expense (55,826) (334,197) (47,375) (437,398)
Operating expense (1,622,353) (652,022) - (2,274,375)
Administrative expense (2,342,829) (582,910) (1,218,051) (4,143,790)
Share option and related charges (50,100) (5,499) (190,457) (246,056)
EBITDA 5,717,543 243,123 (1,455,883) 4,504,783
2. Segment information (continued)
Licensing Social publishing Head Office Total
H1 2022 £ £ £ £
Revenue 6,708,165 1,788,722 11,000 8,507,887
Marketing expense (13,081) (2,063) (38,130) (53,274)
Operating expense (1,161,910) (618,587) - (1,780,497)
Administrative expense (1,815,916) (485,343) (892,757) (3,194,016)
Share option and related charges (77,067) (84,897) (162,819)
(855)
EBITDA 3,640,191 681,874 (1,004,784) 3,317,281
As per Note 1, the restatement of comparative results relating to hosting fees
has also been reflected in the segmental information. In the licensing segment
£440,153 has been reclassified from administrative expenses to operating
expenses, in the social publishing segment the reclassification is £161,043.
3. Finance income and expense
6M 6M
30 June 2023
30 June 2022
£ £
Finance income
Interest received 733 -
Interest income on unwind of deferred income 15,140 13,038
Total finance income 15,873 13,038
Finance expense
Bank interest paid 13,866 9,519
Effective interest on other creditor - 94,497
Interest expense on lease liability 7,979 13,753
Total finance expense 21,845 117,769
4. Earnings per share
Basic earnings per share is calculated by dividing the result attributable to ordinary shareholders by the weighted average number of shares in issue during the period. The calculation of diluted EPS is based on the result attributable to ordinary shareholders and weighted average number of ordinary shares outstanding after adjustment for the effects of all dilutive potential ordinary shares. The Group's potentially dilutive securities consist of share options.
6M 6M
30 June 2023
30 June 2022
£ £
Profit after tax attributable to the owners of the parent Company 2,511,848 1,393,141
Number Number
Denominator - basic
Weighted average number of ordinary shares 292,174,223 291,309,072
Denominator - diluted
Weighted average number of ordinary shares 292,174,223 291,309,072
Weighted average number of option shares 8,092,887 7,442,107
Weighted average number of shares 300,267,111 298,751,179
Pence Pence
Basic earnings per share 0.86 0.48
Diluted earnings per share 0.84 0.47
5. Property, plant and equipment
ROU lease assets Leasehold improvements Computers and related equipment Office furniture and equipment Total
£ £ £ £ £
Cost
At 1 January 2023 835,973 63,113 436,667 68,231 1,403,984
Additions - - 24,261 1,075 25,336
Disposals (121,996) - - - (121,996)
Exchange differences (4,279) (160) (3,320) (1,046) (8,805)
At 30 June 2023 709,698 62,953 457,608 68,260 1,298,519
Accumulated deprecation and impairment
At 1 January 2023 493,168 46,326 266,456 62,625 868,575
Depreciation charge 78,193 6,163 49,137 1,551 135,044
Disposals (121,996) - - - (121,996)
Exchange differences (210) (160) (2,251) (981) (3,602)
At 30 June 2023 449,155 52,329 313,342 63,195 878,021
Net book value
At 1 January 2023 342,805 16,787 170,211 5,606 535,409
At 30 June 2023 260,543 10,624 144,266 5,065 420,498
6. Intangible assets
Goodwill Customer database Software Development costs Licenses Domain names Intellectual Property Total
£ £ £ £ £ £ £ £
Cost
At 1 January 2023 6,799,250 1,490,536 1,316,645 21,493,414 319,471 8,874 5,844,747 37,272,937
Additions - - 16,627 2,204,419 67,136 - - 2,288,182
Exchange differences (54,383) - - (29,931) (392) - - (84,706)
At 30 June 2023 6,744,867 1,490,536 1,333,272 23,667,902 386,215 8,874 5,844,747 39,476,413
Accumulated amortisation and impairment
At 1 January 2023 1,650,000 1,490,536 1,291,285 14,879,872 129,430 8,874 5,400,088 24,850,085
Amortisation charge - - 20,483 1,559,222 66,249 - 365,543 2,011,497
Exchange differences - - - (10,989) - - - (10,989)
At 30 June 2023 1,650,000 1,490,536 1,311,768 16,428,105 195,679 8,874 5,765,631 26,850,593
Net book value
At 1 January 2023 5,149,250 - 25,360 6,613,542 190,041 - 444,659 12,422,852
At 30 June 2023 5,094,867 - 21,504 7,239,797 190,536 - 79,116 12,625,820
7. Trade and other receivables
30 June 31 December
2023
2022
£ £
Trade receivables 2,755,937 3,497,710
Other receivables 262,098 145,506
Tax and social security 550,878 280,912
Prepayments and accrued income 1,662,583 1,412,202
5,231,496 5,336,330
All amounts shown fall due for payment within one year.
8. Trade and other payables
30 June 31 December
2023
2022
£ £
Trade payables 830,430 669,024
Other payables 146,835 118,777
Tax and social security 158,931 464,557
Accruals 1,602,086 2,017,961
2,738,282 3,270,319
The carrying value of trade and other payables classified as financial
liabilities measured at amortised cost approximates fair value. All amounts
shown fall due for payment within one year.
9. Share capital
30 June 30 June 31 December 31 December
2023
2023
2022
2022
Ordinary shares Number £ Number £
Ordinary shares of 292,888,281 29,288,826 292,006,775 29,200,676
10 pence each
The issue of 881,506 ordinary shares relates to the exercise of share options
during the period. The increase in share capital of £88,150 and share
premium of £16,961, totalling £105,111 is disclosed in the consolidated
statement of changes in equity and consolidated statement of cash flows.
10. Share based payments
The share option and related charges income statement expense comprises:
6M 6M
30 June 2023
30 June 2022
£ £
IFRS 2 share-based payment charge 116,220 253,775
Direct taxes related to share options 129,836 (90,956)
246,056 162,819
IFRS 2 (Share-based payments) requires that the fair value of equity settled
transactions are calculated and systematically charged to the statement of
comprehensive income over the vesting period. The total fair value that was
charged to the income statement in the period in relation to equity-settled
share-based payments was £116,220 (H1'22: £253,775).
Where individual EMI thresholds are exceeded or when unapproved share options
are exercised by overseas employees, the Group is subject to employer taxes
payable on the taxable gain on exercise. Since these taxes are directly
related to outstanding share options, the income statement charge has been
included within share option and related charges. The Group uses its closing
share price at the reporting date to calculate such taxes to accrue. The tax
related income statement charge for the period was £129,836 (H1'22: £90,956
credit).
11. Related party transactions
Jim Ryan is a Non-Executive Director of the Company and the CEO of Pala
Interactive, which has a real-money online casino and bingo site in New
Jersey, Pennsylvania and Ontario. During the period, total license fees earned
by the Group were $30,259 (H1'22: $10,401) with $23,180 due at 30 June 2023
(30 June 2022: $940). During the period the Group distributed its content to
certain North American partners via Pala's B2B platform distribution network,
with platform fees of $7,933 being incurred (H1'22: $108) of which $3,243 was
owed at 30 June 2023 (30 June 2022: $108).
During the period £90,000 (H1'22: £75,000) of consulting fees were paid to
Dawnglen Finance Limited, a company controlled by Michael Buckley. No amounts
were owed at 30 June 2023 (30 June 2022: £Nil).
12. Post balance sheet events
On 2 August 2023 3,455,000 share options were granted to certain Directors and
employees of the Group. All of the options vest on 30 June 2026. All of the
options have an exercise price of nil pence.
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 NKDBDABKDACDRecent news on Gaming Realms
See all newsRCS - Gaming Realms PLC - Investor Presentation
AnnouncementREG - Gaming Realms PLC - Annual Results 2023
AnnouncementREG - Gaming Realms PLC - Total Voting Rights and Share Capital
AnnouncementREG - Gaming Realms PLC - Pre-Close Trading Update
AnnouncementREG - Gaming Realms PLC - Total Voting Rights and Share Capital
Announcement