REG - Gaming Realms PLC - Preliminary Results <Origin Href="QuoteRef">GMRG.L</Origin> - Part 3

Gaming RealmsAnnouncement

15/07/2015 14:02

- Part 3: For the preceding part double click  ID:nRSV9243Kb 

value of identifiable assets and liabilities acquired,
purchase consideration and goodwill are as follows: 
 
                                                   Book                   Fair       
                                                   value      Adjustment  value      
                                                   £          £           £          
                                                                                     
 Intangible assets                                 477,439    -           477,439    
 Property, plant and equipment                     27,949     -           27,949     
 Non-contractual customer lists and relationships  -          256,419     256,419    
 Trade and other receivables                       399,388    -           399,388    
 Other assets                                      55,598     -           55,598     
 Cash                                              87,714     -           87,714     
 Trade and other payables                          (896,775)  -           (896,775)  
                                                   _________  _________   _________  
                                                                                     
 Total net assets                                  151,313    256,419     407,732    
                                                   _________  _________   _________  
 
 
A deferred tax liability of £58,976 arising as a result of the recognition of
additional intangible assets was offset by the recognition of an equivalent
deferred tax asset in respect of tax losses in Bejig Limited. 
 
Fair value of consideration paid 
 
                                                             £           
                                                                         
 Purchase consideration - Gaming Realms plc Ordinary Shares  3,511,988   
 Cash consideration - previously held equity interest        400,000     
 Fair value adjustment of previously held equity interest    (38,187)    
                                                             _________   
                                                                         
 Total consideration                                         3,873,801   
                                                             _________   
                                                                         
 Goodwill (Note 7)                                           3,466,069   
                                                             __________  
 
 
Goodwill recognised in the acquisition of BeJig Limited relates to the
presence of certain intangible assets such as an experienced workforce, which
do not qualify for separate recognition. 
 
Acquisition of AlchemyBet Limited 
 
On 1 August 2013 the Group acquired 88.85% of the voting equity of AlchemyBet
Limited, taking the total ownership of the Group to 100%. The initial 11.15%
was acquired previously for cash consideration of £133,842. 
 
Details of the fair value of identifiable assets and liabilities acquired,
purchase consideration and goodwill are as follows: 
 
                                                   Book                   Fair       
                                                   value      Adjustment  value      
                                                   £          £           £          
                                                                                     
 Non-contractual customer lists and relationships  -          131,093     131,093    
 Trade and other receivables                       112,625    -           112,625    
 Cash                                              31,908     -           31,908     
 Trade and other payables                          (416,855)  -           (416,855)  
                                                   _______    _______     _______    
                                                                                     
 Total net assets                                  (272,322)  131,093     (141,229)  
                                                   _______    _______     _______    
 
 
A deferred tax liability of £30,151 arising as a result of the recognition of
additional intangible assets was offset by the recognition of an equivalent
deferred tax asset in respect of tax losses in AlchemyBet Limited. 
 
Fair value of consideration paid 
 
                                                             £          
                                                                        
 Purchase consideration - Gaming Realms plc Ordinary Shares  1,069,047  
 Cash consideration - previously held equity interest        133,842    
                                                             _________  
                                                                        
 Total consideration                                         1,202,889  
                                                             _________  
                                                                        
 Goodwill (Note 7)                                           1,344,118  
                                                             _________  
 
 
Goodwill recognised in the acquisition of AlchemyBet Limited relates to the
presence of certain intangible assets such as the UK gambling license and an
experienced workforce, which do not qualify for separate recognition. 
 
18. Events after the reporting date 
 
On the 27 January 2015, the Group decided to restructure the marketing
services segment by relocating its operations from the Isle of Man to London.
This enabled the Group to consolidate its existing London team by streamlining
its process and improving its efficiency. 
 
On the 9 April 2015, Bingo Realms Limited entered into an Asset Sale and
Purchase Agreement with European Domain Management Ltd, to sell all associated
assets in its Bingo Godz and CastleJackpot brands which were operated by
Intellectual Property & Software Limited. The total consideration for the sale
was £500,000 in cash, with £200,000 payable on completion and the remainder
payable over the next 17 months. 
 
This information is provided by RNS
The company news service from the London Stock Exchange