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Ultimate Sports News Story

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Ultimate Sports Grp - Interim Results

Announcement: Thu 28th September, 2017 9:00am
RNS Number : 0711S
Ultimate Sports Group PLC
28 September 2017

Ultimate Sports Group PLC

("USG" or the "Company")

28 September 2017

Interim Results

Ultimate Sports Group Plc, the AIM listed investment vehicle, is pleased to announce its interim results for six months ended 30 June 2017.

Chairman's Statement and Chief Executive's Review

For the six months ended 30 June 2017 we are reporting a total comprehensive loss of 53,375 (June 2016: loss 199,178).

USG's net cash balances as at 30 June2017 were 208,022 (June 2016:461,814). The Directors are not recommending the payment of a dividend.

Share Placing

The Company raised 212,500 before expenses through a placing of 2,125,000 shares at 10p per share on 29 March 2017.

Pantheon Leisure Plc ("Pantheon")

USG holds 85.87% of the issued share capital of Pantheon which in turn owns 100% of the operating business of Pantheon's Sport and Leisure division.

Pantheon's Sport and Leisure division is the owner of Sport in Schools Limited ("ESS") also known as The Elms Sport in Schools and Football Partners Ltd ("FPL"). In November 2016, terms were agreed for the sale of FPL's business to Powerplay Team Sports Limited, a company operating in the same sector for a consideration of up to 100,000 with cash payable on deferred terms and subject to certain conditions. Those conditions have now been fulfilled and 82,500 has been received with a further final payment of 17,500 due in October 2017.

Pantheon as a group made a profit of 102,255 for the 6 months ended 30 June 2017 including the net proceeds from the sale of FPL less costs. (June 2016: profit 36,259).

Sport in Schools Limited ('ESS' - Elms Sport in Schools)

On a turnover of 739,249 (June 2016: 664,087), ESS has contributed a divisional profit of 70,644 as compared with 117,494 to June 2016.

ESS specialises in the delivery of primary school sport - covering the National Curriculum during the day and The Extended Day before and after school hours (breakfast, lunchtime and after-school clubs).

The majority of the breakfast and lunchtime clubs are provided and paid for by the school, whilst the majority of after-school clubs are paid for by the parents.

Holiday camps are a successful area for ESS where it provides sports tuition during the school holidays. The majority of the camps are paid for by parents, whilst a few are paid for by the school.

The ESS directors have developed bespoke skill sets which have been adopted with great enthusiasm by its full time staff and part time coaches. On average, some 20,000 children are coached between 12 to 25 hours a week. All its coaches are highly qualified (minimum level 2), DBS checked, child protection vetted and rigorously trained by ESS in all the main disciplines required by the National Curriculum. The management of ESS constantly monitors and assesses the level of performance of its coaches throughout the school year.

Ultimate Player.me

UltimatePlayer.me is a new digital platform that is designed to increase the participation and enjoyment of children in sports.

The platform is operating as a Freemium business model - aiming to achieve web scale of free users with a percentage encouraged to subscribe as members.

Given that the platform is built to be used by coaches and children, it has a complex set of functionality required to address the different needs of the target audience and there have been a number of challenges as you would expect, including:

Coaches must be motivated to use, and encourage the use of, the platform with their classes

Parents must be comfortable to allow their children to join the platform, and help their children engage with it, ultimately getting enough value to purchase memberships and products

Children must be excited enough about the platform to want to log in regularly and to participate in the platform

We have successfully dealt with these challenges because the young players embrace it. In our experience when a coach uses the platform with a class, their players are excited to participate. They change their behaviour in the classes, wanting to develop a wider range of skills and ultimately they participate in more classes. They are excited by awards and actively engage with their parents in the evenings to check their results.

Outlook

The continuing success of the sports tuition activities of ESS is encouraging, as is the engagement by coaches and children of UltimatePlayer.me. and we look forward to updating shareholders on progress.

R.L. Owen

G.M. Simmonds 28 September 2017

Consolidated statement of comprehensive income for the six months ended 30 June 2017


Unaudited

6 months ended 30 June 2016


Unaudited

6 months ended 30 June 2016


Audited

Year ended 31 December 2016












Continuing and discontinued activities:







Revenues


839,599


881,864


1,622,425

Cost of revenues


(391,624)


(456,454)


(1,249,702)










447,975


425,410


372,723








Administrative expenses


(467,028)


(559,382)


(818,903)

Website costs written off


(65,707)


(64,297)


(141,763)










(532,735)


(623,679)


(960,666)








Operating loss


(84,760)


(198,269)


(587,943)








Finance income


-


1,002


1,602

Finance costs


(1,986)


(1,986)


(3,972)








(Loss) before taxation


(86,746)


(199,253)


(590,313)

Taxation


20,144


15


6,836

Profit/(loss) after taxation


(66,602)


(199,238)


(583,477)

Attributable to:







Owners of the company


(81,046)


(202,946)


(566,581)

Non- controlling interests


14,444


3,708


(16,896)



(66,602)


(199,238)


(583,477)








Other comprehensive (loss)/income







Net gain/ (loss) arising on revaluation of available-for-sale investments


16,130


75


(3,275)

Tax relating to components of other comprehensive income


(2,903)


(15)


618



13,227


60


(2,657)








Total comprehensive loss attributable to:







Owners of the company


(67,819)


(202,886)


(569,238)

Non- controlling interests


14,444


3,708


(16,896)



(53,375)


(199,178)


(586,134)





















Diluted and undiluted comprehensive






loss per share


(0.0032)p


(0.0133)p


(0.0319)p

Statement of financial position as at 30 June 2017


Unaudited

as at 30 June

Unaudited

as at 30 June

Audited

As at 31 December


2017

2016

2016









Non current assets




Goodwill and patents

60,054

60,054

60,054

Plant and equipment

15,343

61,985

31,570

Social media website development costs

491,432

457,725

504,492

Total non-current assets

566,829

579,764

596,116





Current assets




Available-for-sale investments

42,128

29,348

25,998

Trade and other receivables

231,019

290,409

97,702

Cash and cash equivalents

208,022

461,814

129,437

Total current assets

481,169

781,571

253,137





Total assets

1,047,998

1,361,335

849,253





Current liabilities




Trade and other payables

253,196

377,044

222,547

Borrowings

38,500

16,377

17,377

Total current liabilities

291,696

393,421

239,924





Non current liabilities




Borrowings

-

41,000

30,562

Total non-current liabilities

-

41,000

30,562





Total liabilities

291,696

434,421

270,486









Net assets

756,302

926,914

578,767





Equity








Share capital

2,281,164

2,026,164

2,048,664

Share premium

385,641

381,954

393,454

Merger reserve

325,584

325,584

325,584

Fair value reserve

11,720

1,210

(1,507)

Retained earnings

(2,198,335)

(1,766,099)

(2,123,512)





Equity attributable to owners of the company

805,774

968,813

642,683





Non-controlling interest

(49,472)

(41,899)

(63,916)









Total Equity

756,302

926,914

578,767

Consolidated statement of changes in equity




Six months ended

30 June 2017


Six months ended

30 June 2016


Year ended

31 December

2016






Total equity at the beginning of period/year



578,767


685,508


685,508









Issue of shares



224,686


480,915


514,915









Revaluation gains/(losses) on available-for sale investments



16,130


75


(3,275)









Taxation on items taken directly to equity



(2,903)


(15)


618









Adjustment for non-controlling interest



-


(46,555)


(47,971)









Share based payments



6,224


6,224


12,449









Loss for the period/year



(66,602)


(199,238)


(583,477)









At end of period/year



756,302


926,914


578,767

Consolidated statement of cash flows for the six months ended 30 June 2017


Six months ended

30 June 2017

Six months ended

30 June 2016

Year ended 31 December

2016






Cash flow from all activities:








(Loss)/profit before taxation

(86,746)

(199,253)

(590,313)

Adjustments for:




Depreciation and amortisation

47,709

46,272

110,495

Finance income

-

(1,002)

(1,602)

Finance costs

1,986

1,986

3,972

Share based payments

6,224

6,224

12,448





Operating cash flow before working capital movements

(30,827)

(145,773)

(465,000)





(Increase)/decrease in receivables

(133,317)

(108,155)

84,552

Increase/(decrease) in payables

30,649

(8,070)

(162,567)

Net cash absorbed by operations

(133,495)

(261,998)

(543,015)





Taxation

17,241

-

7,454





Investing activities




Finance income

-

1,002

1,602

Property, plant and equipment acquired

(2,122)

(3,228)

(4,001)

Social media website development

(16,300)

(54,812)

(134,614)

Acquisition of non- controlling interest

-

(46,555)

(47,970)

Net cash from/(used) in investing activities

(18,422)

(103,593)

(184,983)





Financing activities




Proceeds from share issues

224,686

480,915

514,915

Finance costs

(1,986)

(1,986)

(3,972)

Repayment of borrowings

(9,439)

(9,439)

(18,877)

Net cash from/(used) in financing activities

213,261

469,490

492,066









Net increase/(decrease) in cash and cash equivalents

78,585

103,899

(228,478)





Cash and cash equivalents and bank overdraft at the beginning of the period/year

129,437

357,915

357,915





Cash and cash equivalents at the end of the period/year

208,022

461,814

129,437

Notes to the financial statements for the six months ended 30 June 2017

1. General information

Ultimate Sports Group plc (the "company") is a company domiciled in England and its registered office address is 30 City Road, London EC1Y 2AB. The condensed consolidated interim financial statements of the company for the six months ended 30 June 2017 comprise the company and its subsidiaries (together referred to as "the group").

The condensed consolidated interim financial statements do not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.

The financial information for the year ended 31 December 2016 has been extracted from the statutory accounts. The auditors' report on those statutory accounts was unqualified and did not contain a statement under Section 434 of the Companies Act 2006. The auditors' report drew attention by emphasis of matter to issues surrounding the ability of the Company to continue as a going concern. A copy of those accounts has been filed with the Registrar of Companies.

The group has presented its results in accordance with the measurement principles set out in International Financial Reporting Standards as adopted by the EU using the same accounting policies and methods of computation as were used in the annual financial statements for the year ended 31 December 2016. As permitted, the interim report has been prepared in accordance with the AIM rules for companies and is not compliant in all respects with IAS34 'Interim Financial Statements'.

The condensed consolidated interim financial statements do not include all the information required for full annual financial statements and therefore cannot be construed to be in full compliance with IFRS.

The condensed consolidated interim financial statements were approved by the board and authorised for issue on 29 September 2017.

2. Business segment analysis

Six months ended 30 June 2017

















Discontinued


Continuing





Continuing activities

Sports and leisure


Sports and leisure


Social media website


Consolidated









Results from operations












Revenue

100,000


739,249


350


839,599









Segment operating profit/(loss)



70,644


(78,020)


(7,376)









Group operating expenses







(146,582)









Operating loss







(153,958)









Finance costs net







(1,986)









Loss before tax from continuing activities







(155,944)









Net revenue from discontinued Activities

69,198






69,198









Loss before tax







(86,746)









Tax recovered from R & D claim







17,241








(69,505)









Other tax adjustments







2,903









Operating profit/(loss) after tax







(66,602)









Six months ended 30 June 2016

Discontinued


Continuing






Sports and leisure


Sports and leisure


Social media website


Consolidated

Results from operations












Revenue

216,536


664,087


1,241


881,864









Segment operating profit/(loss)



117,494


(64,778)


52,716









Group operating expenses







(212,180)









Operating loss







(159,464)









Finance costs net







(984)









Loss before tax from continuing activities







(160,448)









Net loss from discontinued Activities

(38,805)






(38,805)








(199,253)









Taxation







15









Loss after taxation from all activities







(199,238)









Year Ended 31 December 2016

Discontinued


Continuing






Sports and leisure


Sports and leisure


Social media website


Consolidated

Results from operations












Revenue

373,935


1,246,888


1,602


1,622,425









Segment operating (loss)/profit



122,535


(164,256)


(41,721)









Group operating expenses







(387,475)

















Operating loss







(429,196)









Finance revenues less costs







(2,370)

















Loss before tax from continuing activities







(431,566)









Net revenue from discontinued Activities

(158,747)






(158,747)








(590,313)









Tax recovered from R & D claim







6,836









Profit after taxation from all activities







(583,477)









3. Taxation

The tax charge in the accounts represents adjustments for deferred tax arising from origination and reversal of timing differences.

4. Basic and diluted loss per share

Comprehensive loss per share for the six month period ended 30 June 2017 has been calculated on the comprehensive loss attributable to owners of the company of 67,819 and on the weighted average number of shares in issue during the period of 21,029,720.

Comprehensive loss per share for the six month period ended 30 June 2016 has been calculated on the comprehensive loss attributable to owners of the company of 202,886 and on the weighted average number of shares in issue during the period of 15,261,268.

Comprehensive loss per share for the year ended 31 December 2016 has been calculated on the comprehensive loss attributable to owners of the company of 569,238 and on the weighted average number of shares in issue during the year of 17,809,583.

For the six month period ended 30 June 2017, six month period ended 30 June 2016 and for the year ended 31 December 2016, share options and warrants to subscribe for shares in the company are anti-dilutive and therefore diluted earnings per share information is the same as the basic loss per share.

* * ENDS * *

For further information, please visit www.ultimatesportsgroup.me or contact:

Ultimate Sports Group PLC

Geoffrey Simmonds, Executive Chairman

+44 (0)20 7935 0823

St Brides (Financial PR)

Charlotte Page

+44 (0)20 7236 1177

Cantor Fitzgerald Europe (Nomad and Joint Broker)

Marc Milmo / Catherine Leftley

+44 (0)20 7894 7000

Northland Capital Partners Limited (Joint Broker)

Matthew Johnson / Stuart Miller

John Howes / Rob Rees

+44 (0)20 3861 6625

Dowgate Capital Stockbrokers Limited (Joint Broker)

Neil Badger / Jason Robertson

+44 (0)1293 517744


This information is provided by RNS
The company news service from the London Stock Exchange
END
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