REG - Gaming Realms PLC - Interim Results
11/09/2024 07:00
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RNS Number : 6303D Gaming Realms PLC 11 September 2024
11 September 2024
Gaming Realms plc
(the "Company" or the "Group")
Interim Results
Core content licensing revenue growth of 28%
£5.8m Adjusted EBITDA(1) (46% growth excluding brand licensing) and a 51%
increase in profit before tax to £3.5m
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 2024 (the "Period" or "H1'24").
Financial highlights:
H1'24 H1'23 Change
£m £m %
Revenue (Content licensing) 11.2 8.8 +28%
Revenue (Brand licensing) 0.3 1.0 -67%
Revenue (Social) 2.1 1.8 +17%
Total revenue 13.6 11.5 +18%
Adjusted EBITDA 5.8 4.8 +21%
Profit before tax 3.5 2.4 +51%
· Total revenue grew 18% to £13.6m in H1'24 (H1'23: £11.5m)
· Group Adjusted EBITDA grew 21% to £5.8m (H1'23: £4.8m),
representing a 43% Adjusted EBITDA margin (H1'23: 41%)
· Excluding brand licensing, the Group delivered adjusted EBITDA
growth of 46% as operational leverage comes through
· Total licensing revenues grew 18% to £11.5m (H1'23: £9.8m):
• Content licensing revenue increased 28% to £11.2m (H1'23: £8.8m)
with an EBITDA margin of 55% (H1'23: 54%)
• Brand licensing revenue reduced 67% to £0.3m (H1'23: £1.0m) due to
two brand deals completed in the same period of the previous year
· Profit before tax increased 51% to £3.5m (H1'23: £2.4m)
· Net cash at period end up 28% to £9.6m (Dec'23: £7.5m) with
continued strong cash generation
Operational highlights:
· Launched with 22 new partners globally:
• In North America with FanDuel in Pennsylvania and Connecticut,
Fanatics in New Jersey, Michigan and Pennsylvania and Atlantic Lottery
Corporation (Canadian Maritime Provincial Lottery)
• In Europe with Solverde in Portugal, DAZN in the UK and Livescore in
the Netherlands
· Granted full iGaming Supplier License in West Virginia
· Signed distribution agreement with Playtech which will lead to
opportunities in Switzerland and the U.S. as well as other key partners in
regulated markets
· Released 7 new games into the market, including Slingo Capital
Gains and Slingo Gold Cash. The Group now has 82 games in its portfolio
(Dec'23: 75 games, Jun'23: 70 games)
· Increased unique players in the content licensing business by 24%
to 3.5m (H1'23: 2.8m)
· Continued to grow the distribution business and launched content
with ReelPlay, a second third-party slot studio
Post period-end:
· Licensing revenue increased 33% in the two months post period-end
compared to the same period in 2023
· Launched content in West Virginia, the fifth regulated U.S. state
to which the Group supplies its content
· Granted iGaming Supplier License in British Columbia
· Launched Slingo Originals content with Danske Spil in Denmark,
Betclic in Italy, Bet365 in Pennsylvania and Virgin Bet in the U.K.
· Released Slingo Press Your Luck as well as Slingo Phillies in
partnership with BetMGM
(1) EBITDA is profit before interest, tax, depreciation and amortisation
expenses and is a non-GAAP measure. The Group uses EBITDA and Adjusted EBITDA
to comment on its financial performance. Adjusted EBITDA is EBITDA excluding
share option and related charges.
Summary:
Gaming Realms has continued its growth through the first half of 2024, 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.
The first half of 2024 has seen the Group deliver another record performance
in revenue and EBITDA, with core content licensing business revenues
increasing 28% over the previous period, driven by 46% growth in revenues from
North America.
In total, we launched with 22 new partners and 7 new games in H1 2024,
including premium game titles Slingo Capital Gains and Slingo Gold Cash.
Excluding brand licensing revenues, where there were two brand deals completed
in the prior period, Group Adjusted EBITDA increased 46% to £5.4m (H1'23:
£3.7m), demonstrating the growth within our core business.
Outlook for FY24:
Looking ahead, the Group is well placed to capitalise on this momentum and
deliver further growth in new and existing markets.
Our focus for the remainder of the year is to further expand our international
presence in new markets, while continuing to grow in existing markets with our
partners.
In August we launched our content in West Virginia, the fifth regulated
iGaming state the Group's content is distributed in. After the period end, the
Group was also granted an iGaming supplier license in British Columbia, where
we expect to launch our content shortly.
These market expansions will be supplemented by premium game launches in the
second half of 2024 including Slingo Fowl Play and Slingo Press Your Luck.
The Board remains optimistic around FY24 financial performance.
Commenting on the first half performance, Mark Segal, Chief Executive Officer,
said:
"We are delighted with our strong performance in the first half of 2024, with
total revenue increasing by 18% to £13.6 million. Our focus on expanding our
content licensing business has led to a 28% revenue growth and the successful
launch of seven new games. These results reflect our commitment to innovation
and solidify our position in the gaming industry.
"The achievements of the first half demonstrate the dedication of our team and
the appeal of our unique gaming offerings. We are poised for further growth as
we continue to expand into new markets, launch with new partners and
strengthen our existing partnerships."
An analyst briefing will be held virtually at 10.00am 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
George Sellar 020 7418 8900
Lalit Bose
Investec Bank plc - Joint Broker
Ben Farrow
Lydia Zychowska 020 7597 4000
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 U.K., U.S., Canada and Malta. Through its unique IP and
brands, Gaming Realms is bringing together media, entertainment and gaming
assets in new game formats. As the creator of a variety of SlingoTM, bingo,
slots and other games, we use our proprietary data platform to build and
engage global audiences. The Gaming Realms management team includes
accomplished entrepreneurs and experienced executives from a wide range of
leading gaming and media companies.
Business review
Gaming Realms had another strong period in the first half of 2024, continuing
to deliver on the Group's core strategy of growing its content licensing
business.
The Group delivered another period of record revenue, EBITDA and profit
generation.
Total Group revenue grew 18% to £13.6m (H1'23: £11.5m), driven by the
Group's core content licensing business and supplemented by strong performance
in the social publishing business.
The Group generated EBITDA of £5.5m (H1'23: £4.5m) and £5.8m before share
option and related charges (H1'23: £4.8m). The Adjusted EBITDA margin
increased to 43% (H1'23: 41%), demonstrating the operational leverage the
Group can deliver.
The £1.0m increase in EBITDA generated compared with the prior period has
seen the Group record a profit before tax of £3.5m (H1'23: £2.4m), an
increase of £1.1m on the prior period.
Licensing
Licensing segment revenues increased 18% to £11.5m (H1'23: £9.8m), which is
broken down as:
· Content licensing revenue growth of 28% to £11.2m (H1'23:
£8.8m); and
· Brand licensing revenue reduced 67% to £0.3m (H1'23: £1.0m).
The segment delivered £6.5m Adjusted EBITDA in the period, a 13% overall
uplift over the £5.8m in H1'23. Excluding brand licensing revenues, Adjusted
EBITDA in the licensing business increased 30% to £6.2m (H1'23: £4.8m).
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 22 partners
in existing markets within Europe and North America. After the period end, the
Group went live with a further 11 new partners and we continue to have a
strong pipeline for the remainder of the year and into 2025.
An additional 7 new Slingo games were released to the market during the
period, bringing the Group's games portfolio to 82 games at the period end
(H1'23: 70 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 28% increase in content licensing revenues to £11.2m
(H1'23: £8.8m). Total segmental expenses (excluding share option and related
charges) increased 24% to £5.0m (H1'23: £4.0m), continuing to demonstrate
the operational leverage of the content licensing business.
After the period end, the Group began distributing its content in West
Virginia, which is the fifth regulated U.S. state that the Group distributes
its content to.
Brand licensing
Revenues from the Group's brand licensing activities, which are non-core, were
£0.3m in the period (H1'23: £1.0m). This reduction is a result of two brand
deals completed in the previous period, including a one-off £0.6m that did
not repeat in H1'24.
Social
Revenues in the Group's social publishing business increased 17% to £2.1m in
the period (H1'23: £1.8m), while the Adjusted EBITDA contribution of the
segment increased 106% to £0.5m (H1'23: £0.2m).
Marketing expenses of £0.2m (H1'23: £0.3m) have been invested during the
period, aimed at increasing player numbers, activity and revenues over a 12
month period. Management does 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 15% to £1.4m
(H1'23: £1.2m), principally due to revenue associated costs. We continue to
invest in the development and operational team to support the Group's growth
plan.
Cashflow and balance sheet
The Group's cash balance as at 30 June 2024 was £9.6m, an increase of £2.1m
from the £7.5m reported at 31 December 2023. This increase represents a
conversion of Adjusted EBITDA to cash of 37% (H1'23: 33%), demonstrating the
increasing cash generative nature of the business, as well as continued
improving operating leverage.
The current period increase in cash was largely driven by the £4.5m cash
inflow from operations, offset by £2.4m development costs capitalised during
the period and £0.5m of corporation tax payments made during the period.
The Group remains debt free, and the Board continues to review the optimal use
of the cash balance.
The Group's net asset position at the period end was £28.1m (31 December
2023: £24.4m).
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.
After the period end, the Company completed a share capital reduction, which
included the cancellation of the share premium account, in order to create
positive distributable reserves. This enables the Company, as it wishes, to
pay shareholders dividends or to be used for other valid corporate purposes,
such as the purchase of its own shares.
Consolidated statement of comprehensive income
for the 6 months ended 30 June 2024
6M 6M
30 June 2024 30 June 2023
Unaudited Unaudited
Note £ £
Revenue 2 13,581,477 11,543,255
Other income 85,994 63,147
Marketing expenses (282,307) (437,398)
Operating expenses (2,993,483) (2,274,375)
Administrative expenses (4,619,437) (4,143,790)
Share option and related charges 10 (299,829) (246,056)
EBITDA 2 5,472,415 4,504,783
Amortisation of intangible assets 6 (1,940,846) (2,011,497)
Depreciation of property, plant and equipment 5 (145,036) (135,044)
Finance expense 3 (24,749) (21,845)
Finance income 3 188,148 15,873
Profit before tax 3,549,932 2,352,270
Taxation (charge)/ credit (253,324) 159,578
Profit for the period 3,296,608 2,511,848
Other comprehensive income
Items that will or may be reclassified to profit or loss:
Exchange loss arising on translation of foreign operations (28,211) (95,724)
Total other comprehensive income (28,211) (95,724)
Total comprehensive income 3,268,397 2,416,124
Profit attributable to:
Owners of the parent 3,296,608 2,511,848
Total comprehensive income attributable to:
Owners of the parent 3,268,397 2,416,124
Earnings per share Pence Pence
Basic 4 1.12 0.86
Diluted 4 1.08 0.84
Consolidated statement of financial position
as at 30 June 2024
30 June 31 December
2024
2023
Unaudited Audited
Note £ £
Non-current assets
Intangible assets 6 13,816,148 13,272,711
Property, plant and equipment 5 308,428 367,092
Deferred tax asset 2,046,549 1,891,000
Other assets 139,531 139,531
16,310,656 15,670,334
Current assets
Trade and other receivables 7 6,004,599 5,060,528
Cash and cash equivalents 9,574,980 7,455,316
15,579,579 12,515,844
Total assets 31,890,235 28,186,178
Current liabilities
Trade and other payables 8 3,445,254 3,383,248
Lease liabilities 38,755 52,135
3,484,009 3,435,383
Non-current liabilities
Deferred tax liability 216,523 219,921
Lease liabilities 105,215 133,445
321,738 353,366
Total liabilities 3,805,747 3,788,749
Net assets 28,084,488 24,397,429
Equity
Share capital 9 29,482,643 29,366,782
Share premium 87,768,341 87,732,888
Merger reserve (67,673,657) (67,673,657)
Foreign exchange reserve 1,416,486 1,444,697
Retained earnings (22,909,325) (26,473,281)
Total equity 28,084,488 24,397,429
Consolidated statement of cash flows
for the 6 months ended 30 June 2024
30 June 30 June
2024
2023
Unaudited Unaudited
Note £ £
Cash flows from operating activities
Profit for the period 3,296,608 2,511,848
Adjustments for:
Depreciation of property, plant and equipment 5 145,036 135,044
Amortisation of intangible fixed assets 6 1,940,846 2,011,497
Finance income 3 (188,148) (15,873)
Finance expense 3 24,749 21,845
Income tax charge/ (credit) 253,324 (159,578)
Exchange differences (2,029) (6,653)
Share based payment expense 10 267,348 116,220
(Increase)/ decrease in trade and other receivables (825,174) 119,974
Increase/ (decrease) in trade and other payables 96,654 (215,605)
Net cash flows from operating activities before taxation 5,009,214 4,518,719
Net tax paid in the period (548,452) (578,675)
Net cash flows from operating activities before taxation 4,460,762 3,940,044
Investing activities
Acquisition of property, plant and equipment 5 (75,260) (25,336)
Acquisition of intangible assets 6 (69,907) (83,763)
Capitalised development costs 6 (2,432,579) (2,204,419)
Bank interest received 3 176,213 -
Net cash used in investing activities (2,401,533) (2,313,518)
Financing activities
IFRS 16 lease payments (58,706) (136,662)
Issue of share capital on exercise of options 9 151,314 105,111
Interest paid 3 (20,544) (13,866)
Net cash from/ (used in) financing activities 72,064 (45,417)
Net increase in cash and cash equivalents 2,131,293 1,581,109
Cash and cash equivalents at beginning of period 7,455,316 2,922,775
Exchange loss on cash and cash equivalents (11,629) (13,652)
Cash and cash equivalents at end of period 9,574,980 4,490,232
Consolidated statement of changes in equity
for the 6 months ended 30 June 2024
Share capital Share premium Merger reserve Foreign Exchange Reserve Retained earnings Total to equity holders of parents
£ £ £ £ £ £
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) (30,306,397) 2,416,124
Contributions by and distributions to owners
Share-based payment on share options (Note 10) - - - - 116,220 116,220
Exercise of options 88,150 16,961 - - - 105,111
30 June 2023 (unaudited) 29,288,826 87,670,735 (67,673,657) 1,453,977 (63,008,422) 20,549,704
1 January 2024 29,366,782 87,732,888 (67,673,657) 1,444,697 (26,473,281) 24,397,429
Profit for the period - - - - 3,296,608 3,296,608
Other comprehensive income - - - (28,211) - (28,211)
Total comprehensive income for the period - - - (28,211) 3,296,608 3,268,397
Contributions by and distributions to owners
Share-based payment on share options (Note 10) - - - - 267,348 267,348
Exercise of options (Note 9) 115,861 35,453 - - - 151,314
30 June 2024 (unaudited) 29,482,643 87,768,341 (67,673,657) 1,416,486 (22,909,325) 28,084,488
Notes forming part of the consolidated financial statements
For the 6 months ended 30 June 2024
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 2024 and 30 June 2023 are
unaudited.
Basis of preparation
The financial information for the year ended 31 December 2023 included in
these financial statements does not constitute the full statutory accounts for
that year. The Annual Report and Financial Statements for 2023 have been filed
with the Registrar of Companies. The Independent Auditors' Report on the
Annual Report and Financial Statement for 2023 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 10 September
2024. 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 2023 and which will form the basis of the 2024 financial statements.
The consolidated financial statements are presented in Sterling.
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
2026, 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
North America 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.
2. Segment information (continued)
Licensing Social Other Total
publishing
H1 2024 revenue £ £ £ £
Primary geographical markets
UK, including Channel Islands 593,404 - 593,404
USA 5,628,833 2,056,687 - 7,685,520
Isle of Man 791,493 - - 791,493
Malta 2,200,938 - - 2,200,938
Gibraltar 1,531,295 - - 1,531,295
Rest of the World 778,827 - 778,827
11,524,790 2,056,687 - 13,581,477
Contract counterparties
Direct to consumers (B2C) - 2,056,687 - 2,056,687
B2B 11,524,790 - - 11,524,790
11,524,790 2,056,687 - 13,581,477
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
2. Segment information (continued)
EBITDA
Licensing Social publishing Head Office Total
H1 2024 £ £ £ £
Revenue 11,524,790 2,056,687 - 13,581,477
Other income - 85,994 - 85,994
Marketing expense (31,794) (200,968) (49,545) (282,307)
Operating expense (2,186,710) (806,773) - (2,993,483)
Administrative expense (2,776,194) (622,170) (1,221,073) (4,619,437)
Share option and related charges (69,376) 611 (231,064) (299,829)
EBITDA 6,460,716 513,381 (1,501,682) 5,472,415
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
3. Finance income and expense
6M 6M
30 June 2024
30 June 2023
£ £
Finance income
Bank interest received 176,213 733
Interest income on unwind of deferred income 11,935 15,140
Total finance income 188,148 15,873
Finance expense
Bank interest paid 20,544 13,866
Interest expense on lease liability 4,205 7,979
Total finance expense 24,749 21,845
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 2024
30 June 2023
£ £
Profit after tax attributable to the owners of the parent Company 3,296,608 2,511,848
Number Number
Denominator - basic
Weighted average number of ordinary shares 294,636,673 292,174,223
Denominator - diluted
Weighted average number of ordinary shares 294,636,673 292,174,223
Weighted average number of option shares 11,963,655 8,092,867
Weighted average number of shares 306,600,328 300,267,090
Pence Pence
Basic earnings per share 1.12 0.86
Diluted earnings per share 1.08 0.84
5. Property, plant and equipment
ROU lease assets Leasehold improvements Computers and related equipment Office furniture and equipment Total
£ £ £ £ £
Cost
At 1 January 2024 805,532 67,570 521,010 84,432 1,478,544
Additions 16,901 - 56,398 18,863 92,162
Disposals (10,464) (60,968) (17,644) - (89,076)
Exchange differences (5,001) (163) (4,635) (1,322) (11,121)
At 30 June 2024 806,968 6,439 555,129 101,973 1,470,509
Accumulated depreciation and impairment
At 1 January 2024 600,350 63,093 381,741 66,268 1,111,452
Depreciation charge 80,604 4,477 56,437 3,518 145,036
Disposals (10,464) (60,968) (17,644) - (89,076)
Exchange differences (1,166) (163) (2,950) (1,052) (5,331)
At 30 June 2024 669,324 6,439 417,584 68,734 1,162,081
Net book value
At 1 January 2024 205,182 4,477 139,269 18,164 367,092
At 30 June 2024 137,644 - 137,545 33,239 308,428
6. Intangible assets
Goodwill Customer database Software Development costs Licenses Domain names Intellectual Property Total
£ £ £ £ £ £ £ £
Cost
At 1 January 2024 6,745,556 1,485,413 1,425,458 26,463,512 379,905 8,874 5,859,424 42,368,142
Additions - - - 2,432,579 69,907 - - 2,502,486
Disposals - - (130,520) - (14,562) - - (145,082)
Exchange differences 2,135 - - (43,724) (214) - - (41,803)
At 30 June 2024 6,747,691 1,485,413 1,294,938 28,852,367 435,036 8,874 5,859,424 44,683,743
Accumulated amortisation and impairment
At 1 January 2024 1,650,000 1,485,413 1,416,818 18,479,931 194,971 8,874 5,859,424 29,095,431
Amortisation charge - - 5,574 1,829,270 106,002 - - 1,940,846
Disposals - - (130,520) - (14,562) - - (145,082)
Exchange differences - - - (23,384) (216) - - (23,600)
At 30 June 2024 1,650,000 1,485,413 1,291,872 20,285,817 286,195 8,874 5,859,424 30,867,595
Net book value
At 1 January 2024 5,095,556 - 8,640 7,983,581 184,934 - - 13,272,711
At 30 June 2024 5,097,691 - 3,066 8,566,550 148,841 - - 13,816,148
7. Trade and other receivables
30 June 31 December
2024
2023
£ £
Trade receivables 3,538,834 3,024,745
Other receivables 247,003 134,558
Tax and social security 271,626 223,113
Prepayments and accrued income 1,947,136 1,678,112
6,004,599 5,060,528
All amounts shown fall due for payment within one year.
8. Trade and other payables
30 June 31 December
2024
2023
£ £
Trade payables 1,128,874 727,706
Other payables 123,052 157,785
Tax and social security 178,604 368,894
Accruals 2,014,724 2,128,863
3,445,254 3,383,248
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 30 June 30 June
2024
2024
2023
2023
Ordinary shares Number £ Number £
Ordinary shares of 294,826,444 29,482,643 292,888,281 29,288,826
10 pence each
The issue of 1,158,605 ordinary shares relates to the exercise of share
options during the period. The increase in share capital of £115,861 and
share premium of £35,453 totalling £151,314 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 2024
30 June 2023
£ £
IFRS 2 share-based payment charge 267,348 116,220
Direct taxes related to share options 32,481 129,836
299,829 246,056
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 £267,348 (H1'23: £116,220).
Where individual EMI thresholds are exceeded, or when unapproved share options
are exercised by 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 £32,481 (H1'23:
£129,836).
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 $43,785 (H1'23: $30,259) with $10,569 due at 30 June 2024
(30 June 2023: $23,180). During the period the Group distributed its content
to certain North American partners via Pala's B2B platform distribution
network, with platform fees of $9,972 being incurred (H1'23: $7,933) of which
$5,645 was owed at 30 June 2024 (30 June 2023: $3,243).
During the period £75,000 (H1'23: £90,000) of consulting fees were paid to
Dawnglen Finance Limited, a company controlled by Michael Buckley. No amounts
were owed at 30 June 2024 (30 June 2023: £Nil).
12. Post balance sheet events
On 16 July 2024, following approval by the High Court of Justice, the Company
completed a share capital reduction, which included the cancellation of the
share premium account. The nominal value of each ordinary share was reduced
from £0.10 to £0.001. The capital reduction was registered with the
Registrar of Companies on 1 August 2024. The share capital reduction or the
cancellation of the share premium account will have no impact on net assets,
shares in issue or total equity of the Company.
On 7 August 2024 2,405,000 share options were granted to certain Directors and
employees of the Group. All of the options vest on 30 June 2027 and have an
exercise price of £Nil.
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